UNIVERSITI TUNKU ABDUL RAHMAN

FOUNDATION IN ARTS

FHBM 1124
MARKETING

TUTORIAL WORKBOOK 1

STUDENT’S COPY

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 FHBM1124 Marketing
TUTORIAL 1
(Chapter 1: Defining Marketing and the Marketing Process)

Section A: Multiple Choice Questions

1. _____ is managing profitable customer relationship.

A. Demand
B. Competitive advantage
C. Marketing
D. Value chain

2. Shoppers at Kentucky Fried Chicken (KFC) are _____.

A. producers
B. consumers
C. marketers
D. service providers

3. One important part of marketing process is to _____.

A. understand customer needs and wants as well as marketplace

B. help keep people employed
C. teach people ways to spend their money
D. understand why a consumer’s demand for a product is not something that is
important

4. Marketers first identify consumer needs and then provide products that satisfy
those needs, ensuring the firm’s long-term profitability. This practice is referred to as
_____.

A. consumer orientation
B. the marketing concepts
C. production orientation
D. marketing mix

5. Which of the following is an example of a need?

A. Myths used in advertising

B. Having lunch at a fancy hotel
C. Adam realizes he is hungry
D. Sports cars that are red

6. Which of the following is an example of a want?

A. Gerard has to buy some nails to finish roofing his house.

B. Tomas decides a Big Mac would be nice for lunch.
C. Before taking piano lessons, Michelle has to buy herself a piano.
D. Marie needs some margarine so she can bake cookies.
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7. Which of the following occurs when people give up something in order to receive
something that they would rather have?

A. Exchange
B. Market
C. Transformation
D. Sales

8. A company that sets its goals and strategies based on what its current equipment can
produce, what products engineering can design, and what the company itself can do
best, has a_____ concept.

A. marketplace
B. sales
C. market
D. production

9. The _____ concept assumes people will buy more if aggressive selling techniques are
used.

A. market
B. selling
C. customer
D. production

10. Best Buy has become the US nation's largest specialty retailer by focusing on the
customer's needs and wants. This philosophy is at the heart of a _____ concept.

A. sales
B. marketing
C. retail
D. production

Section B: Short Answer Questions

1. List FIVE (5) core customer & marketplace concepts in understanding the
marketplace and customer needs and wants. Why is it important for a marketer to
understand the marketplace and the customer needs and wants? (7
marks)

2. Briefly explain the FIVE (5) alternative concepts that impact on marketing strategy.
Provide ONE (1) example each for your answer. (15
marks)

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 FHBM1124 Marketing
TUTORIAL 2
(Chapter 2: Company and marketing strategy)

Section A: Multiple Choice Questions

1. ___________ is the process of developing and maintaining a strategic fit between the
organization’s goals and capabilities and its changing marketing opportunities.

A. Tactical management
B. Functional planning
C. Environmental scanning
D. Strategic planning

2. The steps of the strategic planning process in order are:

A. Defining the company mission, designing the business portfolio, setting the
company objectives and goals, planning marketing and other functional
strategies.
B. Defining the company mission, setting the company objectives and goals,
designing the business portfolio, planning marketing and other functional
strategies.
C. Planning marketing and other functional strategies, designing the business
portfolio, setting the company objectives and goals, defining the company
mission.
D. Designing the business portfolio, defining the company mission, setting the
company objectives and goals, planning marketing and other functional
strategies.

3. A _________ is a statement of the organization’s purpose of what it wants to

accomplish in the larger environment.

A. marketing plan
B. mission statement
C. business audit statement
D. portfolio matrix statement

4. The SBU is a unit of the company that has a separate mission and objectives and that
can be planned independently from other company businesses are referred to as
______.

A. strategic marketing organizations

B. strategic subgroups
C. market segments
D. strategic business units

5. Market penetration occurs when ________.

A. a supermarket adds a new store in a new area

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 B. a U.S.-based company begins to sell its products in China
C. Motown records sells DVDs to Wal-Mart
D. Yoplait yogurt sends coupons to its existing customers
6. Pajamagrams a brand in the U.S that was only marketing pajamas to women. They
have recently opened a gift shop. This is an example of a _____ strategy.

A. market development
B. product development
C. market penetration
D. diversification

7. _____ is the strategy of increasing sales by introducing modified products into

existing markets.

A. Product development
B. Market penetration
C. Market development
D. Diversification

8. Companies must divide up the total market, choose the best segments, and design
strategies for profitably serving chosen segments and the process involves _____,
______, _______.

A. market sampling, market targeting, market share

B. An internal audit, external audit, outsourcing audit
C. product, price, time
D. market segmentation, market targeting, market differentiation & positioning

9. The SWOT acronym refers to a firm’s analysis of its _______.

A. sales, width of product mix, observations, and technology

B. situations, wealth, organizational strengths, and target markets
C. strengths, weaknesses, opportunities, and threats
D. strategies, willingness to change, objectives, and trends

10. Coca-Cola drink vending machines are found all over the world. The newest
machines have an interactive screen that runs advertisements and allows users to
obtain free photos of themselves and ringtones after they have bought a drink. Critics
of these new vending machines are concerns that the entertainment technology is
being used to market sugary products. In terms of a SWOT analysis, this concern
would be an example of a(n) ____.

A. weakness
B. strength
C. opportunity
D. threat

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Section B: Short Answer Question

1. Briefly explain mission statement. Why is it considered as an invisible hand that

guides the company? Explain by providing an example based on IKEA. (6
marks)

2. Explain briefly the Business Portfolio Planning. Why is Business Portfolio Planning
important to a marketer? (4
marks)

3. From the business portfolio analysis in strategic planning, the company will make
decision either to implement growth strategies (product/market expansion grid) or
downsizing strategies. Given the company of Malaysia Airlines, list the FOUR (4)
product/market expansion grids and provide ONE (1) example for each strategy that
Malaysia Airlines can implement. (8
marks)

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 FHBM1124 Marketing
TUTORIAL 3
(Chapter 6: Segmentation, Targeting and Differentiation & Positioning)

Section A: Multiple Choice Questions

1. Which is not a base of segmentation?

A. Geographic
B. Demographic
C. Physiology
D. Behavioral

2. Marketers use _____ to segment markets because this information is widely available,
and factors such as age or gender are often related to consumer purchasing and
consumption behavior.

A. benefits
B. psychographics
C. demographics
D. usage rates

3. Starbuck targeted the people who love to socialize over a cup of coffee. It used
_______ segmentation to define its target market.

A. lifestyle
B. behavioral
C. demographic
D. geographic

4. _____ is the segmenting of markets based on the region of the country or the world,
market size, market density (number of people within a certain unit of land), or
climate.

A. Community segmentation
B. Geographic segmentation
C. Geodemographic segmentation
D. Demonstrable regionalization

5. Age, ethnicity, geographical region, and lifestyle are all examples of _____.

A. segmentation variables
B. positioning strategies
C. synergistic samples
D. homogenous populations
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6. _____ data is useful in understanding why some people who are older than sixty-five
lead active lives, take regular vacations, and eat a healthy diet although others in the
same age segment do not exercise, eat and drink to excess, and refuse to walk more
than five feet to pick up their mail.

A. Demographic
B. Geo clustering
C. Ethnocentric
D. Psychographic

7. A company that uses a(n) _____ targeting strategy is appealing to a broad spectrum of
people.

A. fragmented
B. undifferentiated
C. concentrated
D. differentiated

8. E&V Bridal Studios, a wedding consulting business, only works with Eastern Asian
customers who want to use their cultural heritage in their wedding ceremonies. What
type of segmentation strategy does the wedding consultant use?

A. Market aggregation
B. Undifferentiated targeting
C. Multi segment marketing
D. Concentrated targeting

9. Procter and Gamble Company markets six different laundry detergent brands,
which compete with each other on supermarket shelves. This is an example of
_____________.

A. individual marketing
B. concentrated marketing
C. differentiated marketing
D. undifferentiated marketing

10. The place a product, brand, or group of products occupies in consumers’ minds
relative to competing offerings is referred to as a product’s ________.

A. status
B. equity
C. role
D. position

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Section B: Short Answer Questions

1. Briefly describe the THREE (3) steps of the market segmentation, targeting, and
positioning process using Nivea Skin care as an example. (6
marks)

2. Unilever is a company that has multiple shampoo brands in the market such as Dove,
Clear and Sunsilk. Identify the type of market targeting and, in your opinion,, what
would be the rationale of having multiple brands in the market? What are the setbacks
of having these brands in the market at the same time? (5
marks)

3. Indicate an appropriate segmentation variable for the customers of each of the

products below:
(i) Eggs
(ii) Fast food chain
(iii) Shampoo
(iv) Sports shoes (4
marks)

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 FHBM1124 Marketing
TUTORIAL 4
(Chapter 7: Product Decision-Product, Services, Brands)

Section A: Multiple Choice Questions

1. Which of the following is the best example of a convenience product?

A. A silk scarfs
B. A subscription to a magazine
C. Chewing gum
D. A smart watch

2. The _____ is the actual product such as a refrigerator plus delivery, installation,
financing, and warranty.

A. actual product
B. value network
C. augmented product
D. potential product

3. The _____ for a guest paying for a night’s stay at a hotel is rest and sleep.

A. generic product
B. core benefit
C. value-deliverable product
D. augmented product

4. The _____ for a guest paying for a night’s stay at a hotel is a bed, bathroom, towels,
dresser, light, and closet.

A. actual product
B. core product
C. customized benefit
D. augmented product

5. Consumer products are products and services bought by final consumers for ______.

A. personal consumption
B. selling purposes
C. mass advertising
D. comparison
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6. _____ products are purchased with little shopping effort. These products typically are
purchased regularly, usually with little planning, and require wide distribution.

A. Convenience
B. Specialty
C. Branded shopping
D. Unbranded shopping

7. Compared to the other classifications of consumer products, shopping products are:

A. Usually less expensive than convenience products.

B. Purchased without significant planning.
C. Usually more expensive than convenience products and are found in fewer
stores.
D. Purchased immediately after the consumer realizes
he or she needs them.

8. Maureen purchased a package of Bounce fabric sheets with Febreeze citrus scent.
Since both brands were prominently listed on the package, this would be an example
of:

A. Equity branding
B. Co-branding
C. Private branding
D. Complementary branding

9. Hilton Hotel has the reputation of a five-star hotel. However, there is a possibility that
a customer may come across a front desk worker who is unhelpful towards the
customer. This is due to the ____________ of services.

A. intangibility
B. inseparability
C. variability
D. perishability

10. New employees are to go through a 5-day orientation session as to prepare the service
staff before they begin their work attending to customers. This is known as
______________.

A. external marketing
B. internal marketing
C. interactive marketing
D. expert marketing

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Section B: Short Answer Questions

1. Packaging is one of the product service decision that has to be planned properly. As a
planner for an instant noodle company, identify and explain FOUR (4) key aspects
that need to be addressed while planning for the packaging of the instant noodle.
(8
marks)

2. Answer the following questions based on the information given below.

Dell Studio 14 Laptop has the mobility you need to keep your world moving to reflect your
personal style. These mobile features will never let you skip a beat:
Power share – Charge your cell phone and other mobile devices via the USB.
Vivid display – View your favorite media with a true Hi-def, 14" widescreen display.
Wireless connection – Stay connected everywhere with WWAN mobile broadband.
Webcam – Stay in touch with your friends and family via the built-in 2MP HD web cam.
Media card reader – Quickly transfer your digital photos and music.
Smart services–Dell Support Center to keep you and your systems updated and Dell
DataSafe™ Online for backup service.

(i) The Dell Studio 14 Laptop can be classified as a consumer product.

Determine the product category. Provide THREE (3) reasons to support your
answer. (4 marks)

(ii) Explain the THREE (3) levels of The Dell Studio 14 Laptop. Provide ONE (1)
relevant example for each product level based on the text above. (9
marks)

(iii) Identify TWO (2) benefits of branding to DELL Company. (4

marks)

3. Interactive Service Marketing is providing on-the-job training to service employees

while they are interacting with the customer in a real job setting. Provide one example
of a job that practices interactive service marketing and the benefits of it. (3
marks)

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 FHBM1124 Marketing
TUTORIAL 5
(Chapter 8: Developing New Products and Managing the Product Life-Cycle)

Section A: Multiple Choice Questions

1. _____ does not simply mean creating totally new products never before on the
market.

A. Idea screening
B. Idea generation
C. Concept testing
D. Product development

2. Being first on the market with a new product has a number of advantages, including
all the following EXCEPT:

A. Increased sales through longer sales life

B. Immediate profit
C. More resale opportunities
D. Greater market responsiveness

3. _______ is when marketers use a variety of sources to come up with a potentially new
product that would be beneficial to customers and is compatible with the company’s
mission.

A. Idea generation
B. Problem recognition
C. Perceptual mapping
D. Product screening

4. During the technical development phase of the new product development process, a
physical version of the product is developed; it is called a _____.

A. test marketing
B. business analysis
C. product concept
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 D. prototype

5. One of the advantages of test marketing is _____.

A. the low cost

B. the ability to keep information from falling into competitors’ hands
C. the opportunity to survey prospective customers
D. the ability to evaluate a product and its marketing program before
commercialization

6. The final stage in the new-product development process is:

A. Product testing
B. Market testing
C. Commercialization
D. Product prototyping
7. Burger King developed a new French fry to compete with McDonald’s world’s best
French fry. The specifications included that the crunch would last for seven or more
chews. The product failed because consumers did not like the fry as well as
McDonald’s fry. Burger King did not _____ the idea for both technical and
commercial value.

A. look at benefits
B. advertise
C. screen
D. promote

8. Which of the following products is most likely to be in the decline stage of its product
life cycle?

A. Cookie mixes
B. Smartphone
C. Blender
D. GPS units

9. Which of the following statements about the product life cycle (PLC) is true?

A. The PLC concept encourages marketing managers to think reactively.

B. Marketers do not yet understand the relationship between the adopter categories
and the stages of the PLC.
C. There are as many new buyers in the maturity stage of the PLC as in the growth
stage.
D. The PLC is especially useful as a predicting tool.

10. Under decline stage, management may decide to __________ its brand without
change in the hope that competitors will leave the industry.

A. increase
B. decrease
C. ignore
D. maintain

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Section B: Short Answer Questions

1. Within the Malaysian context, identify the stage of the product life cycle that hybrid
automobiles (cars that run on both petrol and electricity) are in. What are the reasons
for your answers? (5
marks)

2. The maturity stage is characterized by slowing product sales growth. It is also a stage
where the company enjoys profit maximization. In short, it is a stage where most
marketers hope their product will remain for as long as possible. Explain briefly how
product managers for Toyota can achieve this aim. (9
marks)

3. For each of the scenarios below, identify the relevant product life cycle stage, the
marketing objective and pricing strategy. (9
marks)

(i) Puan Hajar’s nasi lemak sales in Bandar Kinrara seem to be rising rapidly. She
was overheard whispering to her close friend that profits also picking up.

(ii) By the end of the year, Mr. Chan, owner of Speedy Mart discovered that his
profits were declining. Further investigation showed that his sales were also
declining.

(iii) The marketing director had called for a very important meeting. He realized
that they have to look into ways to at least maintain their current position.
Sales have been among the highest in their 9 years history in the market and
they have been enjoying good profits in the past 2 years.

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 FHBM1124 Marketing
TUTORIAL 6
(Chapter 9-Pricing Considerations and Strategies: Understanding and Capturing
Customer Value)

Section A: Multiple Choice Questions

1. Price is best described as ________.

A. that which is given up in exchange to acquire a good or service

B. money exchanged for a good
C. the cost in dollars for a good or service as set by the producer
D. the value of a barter good in an exchange

2. All of the following statements about price are true EXCEPT:

A. Price can relate to anything with perceived value, not just money.
B. Price is that which is given up in an exchange to acquire a product.
C. Price means the same thing to the consumer and the seller.
D. The price paid is based on the satisfaction consumers expect to receive from a
product.

3. Money that is left over after paying for company activities is called ________.

A. return on investment
B. a contribution margin
C. profit
D. net worth

4. Although many factors can influence price, the primary determinants are _____.

A. costs of manufacturing and distribution

B. the demand for the good and the cost to the seller
C. demand by the consumer and perceived quality
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 D. distribution and promotion strategies

5. Many consumers, especially when faced with an uncertain purchase decision,

think that a high price ______.

A. is a signal of quality
B. is an indication that consumers are being ripped off
C. will always lead to major price discounts to wholesalers and retailers that
distribute it
D. is a sign of the company's overall market share

6. Marketers must take care when using the _____ strategy since a lower price often
signals to consumers that product quality is also low.

A. price skimming
B. penetration pricing
C. unbundling
D. cost sharing
7. Which type of discount is a price reduction offered to a customer in return for
prompt payment of a bill?

A. Quantity discount
B. Cash discount
C. Functional discount
D. Promotional allowance

8. Quantity discounts are most often used to _______.

A. reward the buyer who pays in cash

B. encourage large orders
C. increase supply for a specific raw material
D. reward a channel intermediary for performing some service

9. ______ occurs when a firm is customer-driven and seeks to understand the

attributes customers want in the goods and services they buy and the value of those
attributes to customers.

A. Value-based pricing
B. Noncumulative pricing
C. CRM pricing
D. Market concept pricing

10. All of the following are geographic pricing methods EXCEPT:

A. Latitude pricing
B. FOB origin pricing
C. Zone pricing
D. Basing-point pricing

Section B: Short Answer Questions

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1. Explain the differences between cost-based pricing and value-based pricing. (2 marks)

2. French Door refrigerators are uncommonly used in Malaysia. It has two doors, and
the capacity is extremely large, and this contributes to high electricity bill to maintain
one at home. New technologies have allowed these fridges to include water dispenser,
ice maker and a transparent door to provide convenience to households. As the
manager of Haier, a company that produces refrigerators, you are to suggest and the
new product pricing strategy suitable for this product. (6
marks)

3. Identify the relevant pricing strategies (including the strategy type) used in the
scenarios below: E.g. market skimming strategy (new product pricing strategy) or
segmented pricing – location (price adjustment strategies) (8
marks)

(i) The new canteen operator is selling value meals which include a plate of
mixed rice, a drink and a slice of watermelon or papaya at a price of RM4.00
in an effort to promote their sales.

(ii) In order to encourage their customers to settle their debts early, Art Supplies
Enterprise is offering a 5% discount on all invoices settled within 14 days of
date of purchase.

(iii) Honda is currently heavily promoting their cars by offering special down
payment rebates for most of their car models.

(iv) Most car park operators charge different prices for different parts of day
(office hours vs. after office hours) and also different days of the week
(weekdays vs. weekends).

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 FHBM1124 Marketing
TUTORIAL 7
(Chapter 10: Distribution decisions - Marketing Channels – Delivering Customer Value)

Section A: Multiple Choice Questions

1. A _____ is a business structure of interdependent organizations that reaches from the

point of product origin to the consumer.

A. marketing mix intermediary

B. selective distribution channel
C. marketing channel or channel of distribution
D. transportation channel or channel of movement

2. Which of the following intermediaries sell mainly to consumers?

A. Retailers
B. Merchant wholesalers
C. Agents
D. Brokers

3. What is the function of inventory management?

A. Balancing customer demand with costs of carrying excess inventory
B. Deciding on how many and what types of warehouse it needs and where they will
be
C. Emphasizes teamwork, both inside the company and among the entire marketing 
channel to maximize the performance of entire distribution system.
D. Company must manage its inventory level based on the types of warehouse it 
needs.

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4. The process of managing upstream and downstream value-added flow of materials,
final goods, and related information about resellers and final consumers is classified
as _________.

A. delivery network
B. marketing logistics network
C. supply chain management
D. physical distribution network

5. “A place where companies store their goods while they wait to be sold. The storage
function overcomes differences in needed quantity and timing, ensuring that products
are available when customers are ready to buy them”. This logistic function is known
as _________.

A.  transportation
B.  inventory management
C.  warehousing
D.  logistics Information Management

6. Mydin as a big retailer, being in touch with the customers, are most favorably situated
to study consumers’ behavior. Thus, they collect valuable information pertaining to
the problems of marketing and provide them to the manufacturer to ensure customer
satisfaction can be achieved. What is the function performed by Mydin?

A.  Physical distribution
B.  Matching
C.  Information
D. Contact 

7. All of the following are typical channel members in marketing channels for
consumer products EXCEPT:

A. Retailer
B. Industrial distributor
C. Producer
D. Wholesaler

8. _____ describes the process of strategically managing the efficient flow and
storage of raw materials, in-process inventory, and finished goods from point of
origin to point of consumption.

A. Contract logistics
B. Logistics
C. Disintermediation
D. Channel facilitation

9. Marketing channels make distribution simpler by reducing the number of

transactions required to get products from manufacturers to consumers. This is
called __________.

A. forward integration
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 B. contact efficiency
C. elimination of temporal discrepancies
D. sorting

10. The logistic network which moves product from company to resellers and then to
customers is classified as

A. Risk averse distribution

B. Outbound distribution
C. Reverse distribution
D. Inbound distribution

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Section B: Short Answer Questions

1. Marketing channels facilitate the exchange process by cutting the number of contact
necessary. Briefly explain this role of marketing channel by using SenHeng
Electrical as an example. (5
marks)

2. Identify the marketing channels for a barber shop. Illustrate the channel with an
appropriate diagram. (3
marks)

3. Large corporations such as Ford Motors focuses on the product design and production
while allowing logistic companies such as UPS (United Parcel Services) to handle the
logistic functions. List and describe FOUR (4) major logistic functions services
provided by UPS to Ford Motors. (8 marks)

22
 FHBM1124 Marketing
TUTORIAL 8
(Chapter 11: Distribution Decision-Retailing & Wholesaling)

Section A: Multiple Choice Questions

1. _____ is defined as all activities directly related to the sale of goods and services to
the ultimate consumer for personal, nonbusiness use or consumption.

A. Wholesaling
B. Retailing
C. Business
D. Distribution

2. The number of different varieties of fishing equipment carried by the Angler’s Store
refers to the store's ______________.

A. store's supply standard

B. complete retail offering
C. volume
D. assortment depth

3. Housing several departments under one roof, a _____ carries a wide variety of
shopping and specialty goods and provides a high level of service.

A. supermarket
B. specialty store
C. convenience store
D. department store

4. Which of the following types of stores has a high gross margin, a narrow product
assortment, and a high level of service?

A. Supermarket
B. Warehouse club
C. Convenience store
D. Specialty store

5. _____ are large, departmentalized, self-service retailers that specialize in wide

assortments of foodstuffs and a few nonfood items.

A. Supermarkets
B. Convenience stores
C. Membership wholesale clubs
D. Discount stores

6. Retailers and merchant wholesalers are examples of intermediaries that ________.

A. take title to a product

B. create temporal and spatial discrepancies
C. use consumer promotions
D. do not benefit from any economies of scale
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7. A(n) _____ is an institution that buys goods from manufacturers, takes title to
these goods, and resells them to businesses, government agencies, and/or other
wholesalers or retailers.

A. merchant wholesaler
B. agent
C. channel cooperative
D. marketing cooperative

8. Agents and brokers __________________________________.

A. have a great deal of control and risk invested in the goods

B. only represent manufacturers in sales situations
C. have a great deal of input on the terms of the sale
D. do not take title to merchandise

9. Breaking bulk at the wholesale level is called____.

A. allocating
B. accumulation
C. downsizing
D. grading

10. Following are the functions provided by wholesalers EXCEPT:

A. Bulk breaking
B. Warehousing
C. Transportation
D. Produce a product

Section B: Short Answer Questions

1. Briefly explain ‘retailing’ and ‘wholesaling’. What are the primary differences
between the two activities? (4
marks)

2. There are many types of store retailers. They differ in the extent of the product lines
they carry, the type of consumer search effort they practice, and the level of service
offered. Given the situation below, identify the type of store retailers and provide
ONE (1) example for each.
(i) The company carries narrow product lines with deep assortments within those
lines. (2
marks)

(ii) The stores are superstores that are actually giant specialty stores. (2 marks)

(iii) They are much larger than regular supermarkets and offer a large assortment
of routinely purchased food products, nonfood items, and services. (2 marks)

(iv) It is large, low-cost, low-margin, high-volume, self-service store that carries a

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 wide variety of food, laundry, and household products (2
marks)

3. Japan has many more retailers and wholesalers than the United States. There are many
reasons given for these differences in distribution systems. One is the small amount of
space in Japan. Because of limited shelving space in homes and retail outlets, and
because of the relative lack of automobiles in Japan, many local, small stores and
wholesalers are needed to service customers. Another reason is that the retail sector
has served as Japan's version of a social security program. Small Mom-and-Pop stores
served as a protected haven for those workers who retired or otherwise fell between
the cracks in Japan’s industrial economy. Wholesalers are needed to provide financing
and management skills to these small shopkeepers.

State and briefly explain FOUR (4) functions of the wholesalers in Japan according to
the text given. (8 marks)

25
 FHBM1124 Marketing
TUTORIAL 9
(Chapter 12: Engaging Consumers and Communicating Customer Value – Advertising
and Public Relations)

Section A: Multiple Choice Questions

1. _____________ is communications by marketers that inform, persuade, and remind

potential buyers of a product in order to influence an opinion or elicit a response.

A. Distributive communication
B. Perceptual communication
C. Promotion
D. Publicity

2. Kraft’s marketing efforts for its Macaroni & Cheese include television
commercial and magazine inserts. These activities are all activities associated
with:

A. advertising
B. public relations
C. sales promotions
D. traditional direct marketing

3. The advantage(s) of public relation is/are to _______________.

A. reach many prospects who avoid salespeople and advertisements

B. dramatize a company or product
C. (A) and (B) are correct
D. None of the answers are correct

4. ________ advertising has the advantages of being both timely and geographically
flexible.

A. Television
B. Newspaper
C. Outdoor
D. Magazine

5. One of the advantages of television advertising is:

A. short life of message

B. commercial clutter
C. high costs
D. ability to reach wide and diverse audience

26
6. One of the major promotional tools which involves building up a positive corporate
image of a company and handling unfavorable stories and events is __________.

A. personal selling
B. advertising
C. public relations
D. sales promotion

7. Which public relations tool involves a company spending money to support an

issue, cause, or event that is consistent with corporate objectives?

A. Premium free gift

B. Special publication
C. Sponsorship
D. Contest

8. How do public relations professionals use Internet Web sites?

A. to introduce new products

B. to promote existing products
C. to obtain consumer feedback
D. to do all of these things

9. Which one of the options below describes the use of inter-personal communications
with the aim of developing positive feelings and stimulating behavior?

A. Digital marketing
B. Personal selling
C. Sales promotions
D. Advertising

10. ___________ is used by the company to carefully integrate its many communications
channels to deliver a clear, consistent, and compelling message about the organization
and its brands. 

A. Integrated Marketing Communication

B. Promotion strategy
C. Communication strategy
D. Advertising strategy

27
Section B: Structured Questions

1. Briefly explain any TWO (2) advantages of advertising and public relation. (4 marks)

2. List and briefly explain the THREE (3) major objectives of advertising. (6 marks)

3. Suggest the promotion mix tools for each of the following objective and provide ONE
(1) relevant example.

(i) Marketer’s objective is to reach out to a specific group of customers.

(2
marks)

(ii) Marketer’s objective is to target as many people as possible. (2 marks)

(iii) Marketer’s objective is to build rapport with the public and better understand
the needs and concerns of customers and the general public. (2
marks)

28
 FHBM1124 Marketing
TUTORIAL 10
(Chapter 13 & 14: Engaging Consumers and Communicating Customer Value –
Personal Selling, Sales Promotion & Direct and Digital Marketing)

Section A: Multiple Choice Questions

1. Sales promotion ______________.

A. is a publicity tool
B. is only directed to the ultimate consumer market
C. is more difficult to measure than advertising
D. offers a short-term incentive to buy

2. Dell’s fall back-to-school program allows students who buy a new laptop computer
for college to get a free printer. The printer giveaway is a:

A. push strategy
B. advocacy advertising
C. comparative advertising
D. sales promotion

3. Sales promotion consists of short-term incentives to encourage purchase or sales of a

product or service. Which of the following is NOT an example of consumer
promotion?

A. Premiums
B. Sampling
C. Trade shows
D. Coupons

4. What are the LAST two steps in the selling process?

A. Handling objection and closing

B. Handling objection and follow-up
C. Closing and follow-up
D. Closing and approach

5. All of the following statements describe an advantage of personal selling over

other forms of promotion EXCEPT:

A. Personal selling is less expensive on a per contact basis.

B. Personal selling is better for providing customers with detailed
demonstrations of products.
C. It is easier to vary the message according to what the customer needs to
know with personal selling.

29
 D. It is easier to direct the marketing effort to directly to qualified prospects
with personal selling.

6. Personal selling is more important than advertising and sales promotion if:

A. the products being sold are standardized

B. there are many customers for the product being sold
C. the product being sold has a low value
D. the products being sold are technically complex

7. Which of the following has NOT contributed to the deeper, more interactive nature of
today’s customer relationship?

A. Traditional advertising
B. Emails
C. Online social networks
D. Websites

8. Which of the following not an example of traditional direct marketing tools?

A. Kiosk marketing
B. Telemarketing
C. Internet marketing
D. Direct Response TV marketing

9. _____________ is preferred by the salespeople because it has a direct contact

between buyer and seller, allows for more flexibility and sales efforts can be targeted
to specific customers who are best prospects.

A. Personal selling
B. Sales promotion
C. Advertising
D. Public relation

10. The target group of customers for SuperLife Company is Generation Z. Ali is the
marketing manager of SuperLife Company and he is not sure on how to reach his
target customers. If you were in his place, which promotion mix would you use to
approach your target customers?

A. Publicity
B. Sales promotion
C. Indirect channel marketing
D. Digital marketing

30
Section B: Structured Questions

1. Briefly explain the TWO (2) types of personal selling approaches. (4

marks)

2. You have just joined a small company with only a website to communicate with its
online customers. Suggest FOUR (4) other online marketing communication
strategies using owned media to reach out to its customers. (8
marks)

3. Although online shopping has grown over the years, it still represents a small part of
the total retail spending. Explain from the consumers’ perspective why the internet
has yet to replace the high street stores. (6
marks)

31
 FHBM1124 Marketing
TUTORIAL 11
(Chapter 3: Marketing Environment)

Section A: Multiple Choice Questions

1. The _______ consists of the actors and forces that affect marketing management’s
ability to build and maintain successful relationships with target customers.

A. business environment
B. marketing environment
C. external environment
D. internal environment

2. The external environment/macro environment _____.

A. can be controlled in much the same manner as the internal marketing mix
B. cannot be influenced by marketing managers
C. does not change over time
D. must be continually monitored by marketing managers

3. All of the following are factors in the external environment/macro environment

affecting marketing EXCEPT:

A. marketing mix
B. economic conditions
C. technology
D. political and legal factors

4. Susan is the director of marketing for a company that sells recreational vehicles and
is developing a marketing plan to cover the next five years of business. Which of the
following is an uncontrollable factor Susan must consider in her plan?

A. place or distribution factors

B. economic factors
C. promotional literature
D. pricing strategy for warranty services

5. Which of the following is NOT a demographic characteristic of a population?

A. Gender
B. Age
C. Values
32
 D. Education

6. Interest rates, inflation, and consumer income that influence the marketing
environment are called _____ factors.

A. economic
B. socio-demographic
C. political
D. government
7. The ________ involves the natural resources that are needed as inputs by marketers
or that are affected by marketing activities.

A. economic forces
B. natural forces
C. political forces
D. cultural forces

8. Blogs created by consumers can be used to assess customer attitudes toward new
products as well as customer perceptions of new products. Marketers’ ability to
search for key words used in the blogs is an example of a change in the _____
factor of the external environment.

A. psychographic
B. technological
C. demographic
D. economic

9. Which of the following is NOT internal environment/microenvironment?

A. Company
B. Supplier
C. Cultural
D. Marketing intermediaries

10. The economic forces/environment consists of factors that affect consumer purchasing
power and spending patterns. Which of the following refers to a middle-class
incomer distribution?

A. Spending patterns are not affected by economic events & major market for
luxury goods.
B. Careful about spending but can still afford the good life some of the time
C. Must stick close to the basics of food, clothing, and shelter and must try
hard to save.
D. Retirees & person on welfare

33
Section B: Structured Questions

1. Demonstrate the differences between the microenvironment and the macro

environment by commenting on the forces that make each environment unique.
(4
marks)

2. The cultural environment is made up of institutions and other forces that affect a
society’s basic values, perceptions, preferences, and behaviors. Briefly explain why
marketers need to predict cultural shifts in the cultural environment based on an
example of a product. (5
marks)

3. New technologies are continuously improving and replacing existing products.

Although technological change is often difficult to predict, suggest how the following
companies and products might be affected by the Internet and digital technologies:
(a) Fuji cameras and film
(b) Cathay Pacific Airlines (4
marks)

34
 FHBM1124 Marketing
TUTORIAL 12
(Chapter 5: Consumer and Business Buyer Behavior)

Section A: Multiple Choice Questions

1. _____ is the set of values, norms, attitudes, and other meaningful symbols that shape
human behavior and is transmitted from one generation to the next.

A. Socialization
B. Consumerism
C. Lifestyle
D. Culture

2. A _____ is a pattern of living that determines how people choose to spend their time,
money, and energy and reflects their values, tastes, and preferences.

A. lifestyle
B. personality
C. motivation
D. self-concept

3. _____ is the process by which people select, organize, and interpret information from
the outside world.

A. Perception
B. Learning
C. Motivation
D. Cognition

4. Learning is _____.

A. an internal state that drives us to satisfy needs

B. the process by which people select, organize, and interpret information from
the outside world
C. a change in behavior caused by information or experience
D. the set of unique psychological characteristics that consistently influence the
way a person responds to situations in the environment

5. Singles of any age are more likely to spend money on expensive cars, entertainment,
and recreation, while new parents spend money on baby furniture. These purchases
reflect the different stages of the _____.
A. lifestyle
B. personality
C. family life cycle
D. self-concept

35
6. The steps of the consumer decision-making process in order are:

A. need positioning, stimulus response reactions, evaluation of alternatives,

purchase decision, post purchase behavior
B. need positioning, alternative aggregation and divestment, purchase decision,
post purchase evaluation
C. information search, need positioning, evaluation of alternatives, product trial,
purchase decision, post purchase satisfaction
D. need recognition, information search, evaluation of alternatives, purchase, and
post purchase evaluation

7. The invitation to go skiing for the weekend forced Donna to look at her current
wardrobe. She decided she needed a much warmer coat. Donna was in which stage of
the purchase decision?

A. situational analysis
B. problem recognition
C. problem screening
D. information search

8. Which step in the consumer decision-making process is a result of an imbalance

between actual and desired states?

A. evaluation of alternatives
B. purchase
C. need recognition
D. post purchase behavior

9. Rod saw a television commercial for a Honda S2000 and wants to test drive one. The
commercial is an example of a(n) _____ stimulus.

A. internal
B. external
C. primary
D. secondary

10. Each week Jess comes to the supermarket with a list of essential items: milk, bread,
peanut butter, and chocolate. This is an example of__________.

A. buyer’s harmony
B. situational convenience
C. routine response behavior
D. consistent decision making

36
Section B: Structured Questions

1. Do consumers always go through each stages of the buyer decision process? Provide a
situation when whereby some steps can be skipped. (4 marks)

2. Briefly explain the role of marketing at the Need Recognition stage. (2 marks)

3. Identify and explain which stage of the consumer purchase decision process is
demonstrated in each of the situations below: (6
marks)

(i) John has just told his best friend, “I’m so happy I bought the Samsung
Galaxy Noted II rather than those other smart phones I was surveying
before this. I can do my email; I can quickly create and edit documents
and navigate with the precision of a mouse and even search the web
with it”.

(ii) Jessica was so happy because she got the job but then she realizes she
does not have car to travel.

(iii) Henry asks his neighbor about the new Honda City his neighbor is
using.

4. Refer to the following and identify ONE (1) major factor (cultural, social, personal,
or psychological) which influences buyer’s purchase decision. (5
marks)

(i) Health centers like Fitness First and California fitness are booming in
Malaysia because the society is getting more health conscious now days.

(ii) Jammie bought the new Myvi because her father is using one.

(iii) Samantha will never miss the latest products under ‘Simply Siti’
cosmetics which are launched by singer Siti Nurhaliza.

(iv)Levi’s jeans became popular among a wide range of youth subcultures

including rockers.

(v) The high-end society has good regard on BMW cars as they perceive those
cars to have better quality.

37