Marketing Management Questions and Answers

Q: Which of the following statements is true ?

The true statement is that marketing and selling are not interchangeable terms.Selling starts with the product the firm has made and uses persuasion to convert it into cash; its focus is the seller's need. Marketing starts with the customer: it identifies needs, designs the product, prices, distributes and promotes it, and continues after the sale to build satisfaction. Theodore Levitt's 'Marketing Myopia' (1960) drew this contrast sharply.So the terms cannot be used interchangeably. Selling is a narrower activity within marketing, not a broader one, and advertising is one tool of promotion that is itself part of marketing; it does not include selling and marketing.

Q: Product-oriented concept believes that ............... is the key to success.

The product concept holds that the offer of better and modified products is the key to success.Under the product concept, managers assume that consumers favour products offering the most quality, performance and innovative features, so the firm concentrates on making better products and improving them over time. Its weakness is that firms can fall in love with their product and ignore what customers actually need.Fulfilling the expectations of customers is the marketing concept. Manufacturing on a large scale to cut cost describes the production concept. Attacking competitors' drawbacks is a promotional tactic, not a business philosophy.

Q: Product Life Cycle (PLC) includes mainly four stages such as Introduction, Growth, Maturity and ................... .

The fourth stage is decline.The product life cycle traces a product's sales and profits over time. In introduction sales are low and profits negative; in growth sales rise fast; in maturity sales level off and competition is fiercest; and in decline sales fall as tastes, technology or competition move on, until the product is withdrawn or revived.Prosperity and depression are phases of the business (trade) cycle of the whole economy, and inflation is a rise in the general price level. None is a stage of a product's life.

Q: In the buying decision process, .................... is the first step.

The first step is need recognition.The standard model of the buyer decision process has five stages: need (problem) recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behaviour. The process begins when the buyer feels a gap between the actual and the desired state, triggered internally, as by hunger, or externally, as by an advertisement.Information search is the second step, evaluation of alternatives the third and the purchase decision the fourth, so none of them can come first.

Q: Relationship marketing refers to maintaining relations with .............. to achieve the marketing purpose.

Relationship marketing means maintaining relations with customers.Relationship marketing shifts the focus from single transactions to building long-term, mutually beneficial relationships with customers, through service, loyalty programmes, personal contact and customer relationship management. Keeping an existing customer is cheaper than winning a new one, and loyal customers buy more and recommend the firm.Relationships with employees, dealers and suppliers also matter, and broader versions of the idea include them as partners, but they serve the central purpose of retaining customers, which is why customers are the answer.

Q: Selling concept focuses on the needs of sellers, while marketing concept focuses on the needs of .............

The marketing concept focuses on the needs of buyers.Theodore Levitt's distinction is that selling is preoccupied with the seller's need to convert the product into cash, while marketing is preoccupied with satisfying the needs of the customer through the product and everything associated with creating, delivering and consuming it. Under the marketing concept a firm first finds out what buyers want and then makes it, earning profit through customer satisfaction.Dealers, suppliers and distributors are partners in the marketing channel whose cooperation matters, but they are not the focus of the marketing concept. The final buyer, the customer, is.

Q: A mass communication programme about a product or an organisation, for which no payment is made, is called as ...........

It is called publicity.Publicity is non-personal communication about a product, service or organisation that appears in the mass media, such as a news story, a review or a feature, without being paid for by the sponsor. Because the medium decides what to print or broadcast, the firm cannot control the message, but it tends to be more credible than paid messages.Advertising is also mass communication, but it is paid for by an identified sponsor. Salesmanship is personal, face-to-face selling. Sales promotion schemes are short-term incentives such as discounts, coupons and contests, which cost the firm money and are not mass communication in the media.

Q: Niche marketing refers to marketing of products and services to a ............. group of buyers.

Niche marketing targets a small group of buyers.A niche is a narrowly defined group of customers, often a sub-segment of a larger segment, whose distinctive needs are not well served by mainstream products. A firm practising niche marketing specialises in serving this small group well, which lets it charge a premium and face few competitors, as makers of luxury watches or of specialised medical equipment do.A large, substantial or diversified group is the target of mass or segment marketing, not niche marketing. The defining feature of a niche is that it is small and specialised.

Q: Initially charging the high price and then gradually reducing the same after some time period, is called as .............

It is called skimming pricing policy.Under price skimming, a firm launches a new product at a high price to 'skim the cream' from buyers who value it most and are least sensitive to price, and then lowers the price step by step to reach more price-sensitive segments. It suits innovative products with few competitors at launch, such as new electronic gadgets.Penetration pricing does the opposite, starting with a low price to win a large market share quickly. Uniform pricing charges the same price to all buyers or in all markets, and unique pricing is not a standard name for this strategy. Only skimming begins high and then reduces the price.

Q: Market segmentation is a process of taking the total heterogenous market for a product and dividing it into several segments each of which tends to be ............. in all significance.

Each segment tends to be homogeneous in all significant respects.Market segmentation, as defined by William J. Stanton, takes the total heterogeneous market for a product and divides it into several sub-markets or segments, each of which tends to be homogeneous in all significant aspects. Buyers within a segment share similar needs, characteristics or behaviour, so the firm can design a marketing mix that suits them, while the segments differ from one another.'Different' describes how segments relate to each other, not what each segment is like inside. 'Special' and 'indigeneous' (indigenous) do not describe the purpose of segmentation, which is to create groups that are internally alike.

Which of the following statements is true ?

A.Marketing and selling are interchangeable terms
B.Marketing and selling are not inter-changeable terms
C.Selling is a broader term which includes marketing
D.Advertising includes selling and marketing

Exam Year(s)

MH SET - 2018, SET Exam - 2018,

Answer: B

The true statement is that marketing and selling are not interchangeable terms.

Selling starts with the product the firm has made and uses persuasion to convert it into cash; its focus is the seller's need. Marketing starts with the customer: it identifies needs, designs the product, prices, distributes and promotes it, and continues after the sale to build satisfaction. Theodore Levitt's 'Marketing Myopia' (1960) drew this contrast sharply.

So the terms cannot be used interchangeably. Selling is a narrower activity within marketing, not a broader one, and advertising is one tool of promotion that is itself part of marketing; it does not include selling and marketing.

Discuss in Forum

Product-oriented concept believes that ............... is the key to success.

A.Offer of better and modified products
B.Fulfilling expectations of customers
C.Focussing on drawbacks of competing products
D.Manufacturing products on large scale

Exam Year(s)

MH SET - 2018, SET Exam - 2018,

Answer: A

The product concept holds that the offer of better and modified products is the key to success.

Under the product concept, managers assume that consumers favour products offering the most quality, performance and innovative features, so the firm concentrates on making better products and improving them over time. Its weakness is that firms can fall in love with their product and ignore what customers actually need.

Fulfilling the expectations of customers is the marketing concept. Manufacturing on a large scale to cut cost describes the production concept. Attacking competitors' drawbacks is a promotional tactic, not a business philosophy.

Discuss in Forum

Product Life Cycle (PLC) includes mainly four stages such as Introduction, Growth, Maturity and ................... .

A.Prosperity
B.Decline
C.Depression
D.Inflation

Exam Year(s)

MH SET - 2018, SET Exam - 2018,

Answer: B

The fourth stage is decline.

The product life cycle traces a product's sales and profits over time. In introduction sales are low and profits negative; in growth sales rise fast; in maturity sales level off and competition is fiercest; and in decline sales fall as tastes, technology or competition move on, until the product is withdrawn or revived.

Prosperity and depression are phases of the business (trade) cycle of the whole economy, and inflation is a rise in the general price level. None is a stage of a product's life.

Discuss in Forum

In the buying decision process, .................... is the first step.

A.Information search
B.Purchase decision
C.Evaluation of alternatives
D.Need recognition

Exam Year(s)

MH SET - 2018, SET Exam - 2018,

Answer: D

The first step is need recognition.

The standard model of the buyer decision process has five stages: need (problem) recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behaviour. The process begins when the buyer feels a gap between the actual and the desired state, triggered internally, as by hunger, or externally, as by an advertisement.

Information search is the second step, evaluation of alternatives the third and the purchase decision the fourth, so none of them can come first.

Discuss in Forum

Relationship marketing refers to maintaining relations with .............. to achieve the marketing purpose.

A.Employees
B.Dealers
C.Customers
D.Suppliers

Exam Year(s)

MH SET - 2018, SET Exam - 2018,

Answer: C

Relationship marketing means maintaining relations with customers.

Relationship marketing shifts the focus from single transactions to building long-term, mutually beneficial relationships with customers, through service, loyalty programmes, personal contact and customer relationship management. Keeping an existing customer is cheaper than winning a new one, and loyal customers buy more and recommend the firm.

Relationships with employees, dealers and suppliers also matter, and broader versions of the idea include them as partners, but they serve the central purpose of retaining customers, which is why customers are the answer.

Discuss in Forum

Selling concept focuses on the needs of sellers, while marketing concept focuses on the needs of .............

A.Dealers
B.Suppliers
C.Buyers
D.Distributors

Exam Year(s)

MH SET - 2018, SET Exam - 2018,

Answer: C

The marketing concept focuses on the needs of buyers.

Theodore Levitt's distinction is that selling is preoccupied with the seller's need to convert the product into cash, while marketing is preoccupied with satisfying the needs of the customer through the product and everything associated with creating, delivering and consuming it. Under the marketing concept a firm first finds out what buyers want and then makes it, earning profit through customer satisfaction.

Dealers, suppliers and distributors are partners in the marketing channel whose cooperation matters, but they are not the focus of the marketing concept. The final buyer, the customer, is.

Discuss in Forum

A mass communication programme about a product or an organisation, for which no payment is made, is called as ...........

A.Publicity
B.Advertising
C.Salesmanship
D.Sales Promotional Schemes

Exam Year(s)

MH SET - 2018, SET Exam - 2018,

Answer: A

It is called publicity.

Publicity is non-personal communication about a product, service or organisation that appears in the mass media, such as a news story, a review or a feature, without being paid for by the sponsor. Because the medium decides what to print or broadcast, the firm cannot control the message, but it tends to be more credible than paid messages.

Advertising is also mass communication, but it is paid for by an identified sponsor. Salesmanship is personal, face-to-face selling. Sales promotion schemes are short-term incentives such as discounts, coupons and contests, which cost the firm money and are not mass communication in the media.

Discuss in Forum

Niche marketing refers to marketing of products and services to a ............. group of buyers.

A.Large
B.Small
C.Substantial
D.Diversified

Exam Year(s)

MH SET - 2018, SET Exam - 2018,

Answer: B

Niche marketing targets a small group of buyers.

A niche is a narrowly defined group of customers, often a sub-segment of a larger segment, whose distinctive needs are not well served by mainstream products. A firm practising niche marketing specialises in serving this small group well, which lets it charge a premium and face few competitors, as makers of luxury watches or of specialised medical equipment do.

A large, substantial or diversified group is the target of mass or segment marketing, not niche marketing. The defining feature of a niche is that it is small and specialised.

Discuss in Forum

Initially charging the high price and then gradually reducing the same after some time period, is called as .............

A.Skimming Pricing Policy
B.Penetration Pricing Policy
C.Uniform Pricing Policy
D.Unique Pricing Policy

Exam Year(s)

MH SET - 2018, SET Exam - 2018,

Answer: A

It is called skimming pricing policy.

Under price skimming, a firm launches a new product at a high price to 'skim the cream' from buyers who value it most and are least sensitive to price, and then lowers the price step by step to reach more price-sensitive segments. It suits innovative products with few competitors at launch, such as new electronic gadgets.

Penetration pricing does the opposite, starting with a low price to win a large market share quickly. Uniform pricing charges the same price to all buyers or in all markets, and unique pricing is not a standard name for this strategy. Only skimming begins high and then reduces the price.

Discuss in Forum

10.

Market segmentation is a process of taking the total heterogenous market for a product and dividing it into several segments each of which tends to be ............. in all significance.

A.Different
B.Special
C.Homogeneous
D.Indigeneous

Exam Year(s)

MH SET - 2018, SET Exam - 2018,

Answer: C

Each segment tends to be homogeneous in all significant respects.

Market segmentation, as defined by William J. Stanton, takes the total heterogeneous market for a product and divides it into several sub-markets or segments, each of which tends to be homogeneous in all significant aspects. Buyers within a segment share similar needs, characteristics or behaviour, so the firm can design a marketing mix that suits them, while the segments differ from one another.

'Different' describes how segments relate to each other, not what each segment is like inside. 'Special' and 'indigeneous' (indigenous) do not describe the purpose of segmentation, which is to create groups that are internally alike.

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