Marketing Management MCQs

1. The term marketing mix was coined by ____.

Ans: Neil H. Borden

2. ____ categorised the components of the marketing mix into the universally recognized 4 Ps of marketing –
Product, price, place and promotion.
Ans: E. Jerome McCarthy

3. ____ contributed to the mix by adding an additional 3 Ps to the existing mix – People, process and physical
evidence.
Ans: Boom and Bitner

4. ____ normally refers to the goods or services offered by a company which satisfies the needs or wants of a
customer.
Ans: Product

5. While preparing the product mix, it is important to communicate the core benefit of the product to the
consumer. (True /False)
Ans: True

6. The various types of differentiation based strategies are ____, ____and ____.
Ans: Differentiation based on the product, Differentiation based on distribution and Differentiation based on the
promotion

7. The factors which affect an organisation’s environment can be of 2 types:– ____ and ____.
Ans: Controllable factors and uncontrollable factors

8. Preparing the marketing budget involves____, ____, ____ and ____.

Ans: Sales forecasting, budgeting, expenses and profit planning

9. The examples of marketing information which can be used for control are Information on marketing objectives
and goals, Information on actual performance in the market and Information on threats and opportunities.
(True /False)
Ans: True

10. What adds the value of time and place utility in the supply chain?
Ans: Logistics

11. Product refers to the physical entity offered by the company to its customers, which is a combination of ____
and ____ qualities.
Ans: Tangible and intangible

12. The product may be intangible, in the form of ____

Ans: Services
13. Consumer Goods are meant for final consumption by consumers and not for sale. (True /False)
Ans: True

14. Product planning starts with the creation of product ____.

Ans: Ideas

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15. Which of the following is not the source of product ideas?
a) Research and development personnel
b) Marketing personnel
c) Associated companies in other countries
d) Accountants
Ans: d) Accountants

16. ____ is also known as a dual package.

Ans: Re-use package

17. After-sale services refer to various services rendered by a business firm to its customer after the sale of goods
is affected. (True /False)
Ans: True

18. The practice of placing several units in one container is known as ____.
Ans: Multiple packaging

19. Which of the following is NOT the strategy of product mix?

a) Expansion of Product mix
b) Contraction of Product mix
c) Alteration of existing products
d) Pricing the product
Ans: d) Pricing

20. A major decision in product policy is related to the managing of ____.

Ans: The product mix

21. In the ____ stage, the sales are at a peak and a further increase is not possible.
Ans: Saturation

22. When ____ start declining, buyers go for a newer and better product.
Ans: Sales

23. ____ is the first stage in the life of a product.

Ans: Introduction

24. A ____ is the symbol of the brand represented as a picture

Ans: Logo

25. The brand name or logo should not be used generically or commonly, as this leads to the dilution of the brand
value. (True /False)
Ans: True

26. The brand name and logo should be chosen so that it cannot be registered and protected legally. (True /False)
Ans: False

27. In an ____ brand type, there is no relationship between the brands of a company, as each brand is promoted
differently and independently.
Ans: Individual

28. ____ denotes the grouping of different products under a single brand.
Ans: Umbrella brand

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29. The type of branding used for introducing new products in an existing lineup, is called as___
a. Individual brand
b. Umbrella brand
c. Private Label
d. Family brand
Ans: (d) Family brand

30. Branding helps the firm to establish ____, as it aids in repeat sales and creates the market for the product.
Ans: Market control

31. USP stands for ____ and is an important advantage of branding

a. Unique Selling Proposition
b. Unequal Selling Pitch
c. Unidentified Shuttle Position
d. Unmanned Space Probe
Ans: (a) Unique Selling Proposition

32. The cost of advertising and promotions can increase the retail price of products by ___ to ____%
Ans: 20 to 25%

33. The concept that the brand must be positioned in a manner that it occupies a particular space in the
consumer’s mind continuously is called ____.
Ans: Renting mind space

34. According to Martin Roll, the three components of brand equity are ____, ____ and ____.
Ans: Customer knowledge, customer preference and financial potential

35. ____ can be defined as the intrinsic value of the brand, expressed in the value of money that the customer is
willing to pay for choosing the brand over its competition.
Ans: Brand equity

36. Expand ROI - ____.

Ans: Return on Investment

37. The influencing factors for a price decision can be divided into to Internal Factors and ____.
Ans: External factors

38. Which of these determines revenue?

a) Product
b) Price
c) Promotion
d )Salesmanship
Ans: b) Price

39. In ____ period, the prices are reduced to a sizeable extent to maintain the level of turnover.
Ans: Recession

40. The price policy must be flexible, and not ____.

Ans: Rigid

41. The price policy must be framed after taking into account ____.
Ans: Availability of raw materials

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42. The price policy must assure reasonable margin to ____.
Ans: Intermediaries

43. When a business enterprise adopts a price policy which is in accordance with the price policies adopted by its
competitors, the price policy is called ____.
Ans: Meeting competition pricing policy

44. In which pricing policy product is priced below the originally fixed price?
Ans: Markdown

45. When one firm in the industry assumes the role of a leader in determining the price, then it is ____ pricing
policy.
Ans: Leader pricing

46. ____ is the amount of money paid or payable to acquire a product and its accompanying services.
Ans: Price

47. The first step in determining the price of a new product is to estimate the ____ for the product.
Ans: Demand

48. It may be noted that the market share of the product of the firm should not be fixed beyond the ____ capacity
of the firm.
Ans: Production

49. Which of the following is not the objective of pricing?

a) R O I
b) Market share
c) Prevention of competition
d) Profiteering
Ans: d) Profiteering

50. While fixing the price, the price of similar products, produced by other firms, will have to be considered.
(True / False)
Ans: True

51. ____ refers to the pathway, path or route taken by goods as they flow or move from the point of production to
the point of consumption or use.
Ans: Channel of distribution

52. Channels of distribution serve as a bridge between them ____ and the final ____ or industrial users.
Ans: Producers; Consumers

53. The channels of distribution help to move the goods from one place to another, and thereby, add place utility
to the goods. (True / False)
Ans: True

54. If ABC Ltd. is considered as financially strong, then it comes under ____ characteristics.
a) Economic
b) Company
c) Supply
d) Marketing
Ans: b) Company

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55. ____ goods must be placed in the hands of the consumers as quickly as possible, and so, they require direct
selling.
Ans: Perishable

56. When economic conditions are depressed, ____ channels of distribution are preferable.
Ans: Short

57. Under ____, the manufacturer or producer sells his products directly to the final consumer.
Ans: Direct Selling

58. ____ is, generally, considered suitable for the marketing of perishable commodities.
Ans: Direct selling

59. Under ____ method, the manufacturer or producer sells his goods to the final consumers or industrial users,
not directly by himself.
Ans: Indirect selling

60. A wholesaler links the manufacturers with the ____.

Ans: Retailers

61. ____ is the function of informing, persuading and influencing the consumers to purchase the product of the
seller.
Ans: Promotion

62. The visual image of the brand consists of ____, ____ and ____.
Ans: Colors, fonts and visual elements

63. Define promotion as given by William J. Stanton.

Ans: Promotion includes advertising, personal selling, sales promotion and other selling tools.

64. Advertising is a paid form and hence ____in nature.

Ans: Commercial

65. Advertising is the connecting link between the manufacturer and the ____.
Ans: Consumers

66. ____ reduces salesman’s jobs.

Ans: Advertising

67. ____ activities supplement the promotional efforts of advertising and salesmanship.
Ans: Sales promotion

68. Sales promotion leads to low unit cost, due to large-scale production and large-scale ____.
Ans: Selling

69. ____ involves face-to-face communication.

Ans: Personal selling

70. The traditional name for personal selling is ____.

Ans: Salesmanship

71. Under ____ the manufacturer or producer sells his products directly to the final consumers or industrial users
without the help of any middlemen.
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Ans: Direct marketing

72. ____ marketing is common in the case of industrial marketing.

Ans: Direct

73. Publicity is ____ communication.

Ans: Informal

74. ____ refers to an effort to create a favourable attitude towards a firm among employees shareholders,
suppliers, customers, the government and the society at large.
Ans: Public relation

75. If a company advertises its products on popular websites, is it online marketing? Yes/No.
Ans: Yes

76. ____ provides space for the company to include not just the product information, but also a whole lot of
details that talk about the company’s existence.
Ans: Internet

77. Integrated marketing communication mix is the same as ____.

Ans: Integrated Promotion mix

78. ____ is a broad statement of some desired endpoint.

Ans: Goal

79. The personality or image created for the company is called as its ____.
Ans: Brand

80. ____ is the brand name of the company which has been registered under the Trade Marks Act.
Ans: Trademark