Marketing Awareness Questions and Answers

Answer: C

Correct answer: Demand

Price and quantity demanded move in opposite directions: raise the price and, other things being equal, fewer people buy. That inverse relation is the law of demand, and how sharply demand responds is its elasticity - which is what decides whether a price rise increases revenue or destroys it.

Answer: C

Correct answer: Additional services for the same cost

A value added service is something extra supplied at no additional charge - free SMS alerts on an account, free cheque collection, extended warranty. It increases what the customer receives without changing the price, and so is a way of competing other than by discounting.

Answer: A

Companies increase market share through innovation, strengthening customer relationships, smart hiring practices, and acquiring competitors. A company’s market share is the percentage it controls of the total market for its products and services.

Answer: C

Correct answer: HNI customers

Mutual funds are an investment product, so the natural market is people with money to invest - high net worth individuals above all, who have surplus funds, an appetite for market-linked returns and an interest in diversification. Students on education loans and poor farmers have no surplus to invest.

Answer: C

Correct answer: Setting up an Ayurvedic Massage center

A massage centre sells a service: intangible, produced and consumed at the same moment, inseparable from the person providing it, and impossible to store. Disney’s park and Air India’s tickets involve services too, but the massage centre is the pure case; the AIDS campaign is social marketing, which sells an idea rather than a service.

Answer: B

Correct answer: Single Segment Concentration

Apple aimed the iPhone at one segment with one product - the premium end of the smartphone market - which is single segment concentration. It gives a strong position and deep knowledge of that segment, at the risk of depending entirely on it.

Answer: C

Correct answer: Growth

Competitors arrive in the growth stage, once the pioneer has demonstrated that there is a market. In the introduction stage there is usually nobody else; by maturity the field is crowded and shaking out.

Answer: B

Correct answer: E-marketing

Using electronic means to communicate a marketing message - email to a target list, in this case - is e-marketing. E-commerce is the buying and selling itself, and e-business the wider conduct of business processes electronically; e-marketing is a part of both.

Answer: D

Correct answer: All of the above

Product decisions cover all three: the product mix, meaning the range of items offered and how deep and wide it is; the attributes of each item - quality, features, design; and branding and packaging, which carry the identity and protect and present the goods.

Answer: B

Correct answer: Unsought Goods

Unsought goods are those the buyer does not think about wanting and would not go looking for - life insurance, burial plots, smoke alarms. They are bought out of necessity or fear rather than desire, which is why they need aggressive personal selling. Convenience goods are bought routinely, and shopping goods after comparison.