Marketing Awareness Questions and Answers

Answer: D

Correct answer: Target Market

Adidas designed a distinct line for each group it had chosen to serve - athletes, the fashion-conscious, the mainstream - which is target marketing: selecting particular segments and developing an offer for each. Segmentation is the earlier step of identifying that those groups exist; targeting is deciding to serve them and building the products.

Answer: D

Correct answer: Software

Software can be delivered without any physical place at all - downloaded over a network, from a server whose location the customer neither knows nor cares about. For a hotel, a tourist spot or a bank branch the “place” is a real location the customer must go to, and it is part of the product.

Answer: A

Correct answer: Dual Pricing

Dual (or differential) pricing is charging different prices for the same product in different circumstances - different markets, different customer groups, different times. Airline fares and cinema matinee prices are everyday examples; the aim is to capture from each group what it is willing to pay.

Answer: D

Correct answer: dividing a market into distinct groups of buyers with similar needs

Segmentation groups customers by characteristics such as geography, demography, behaviour or need, so that each group can be addressed with an offer suited to it. It is the step that precedes targeting and positioning.

Answer: B

Correct answer: Yellow pages

A lead is a prospective customer’s name and contact details, and a business directory such as the yellow pages is a ready-made list of them, sorted by trade and by area. A dictionary contains no people, and a vendor list is of suppliers rather than buyers.

Answer: B

Correct answer: Marketing Environment

The marketing environment is everything outside the firm that affects its ability to serve its customers. Social, legal, political and economic forces are its macro component - the PEST factors - which the firm cannot control but must monitor and adapt to.

Answer: D

Correct answer: Easy to operate

The distinctive appeal of a savings account is that it is easy to operate - money can be paid in and drawn out at will, with no lock-in period. Its rate of interest is lower than a fixed deposit’s, so interest is not what sets it apart; liquidity is.

Answer: C

Correct answer: Creativity

Innovation in marketing means finding a new way to reach or serve the customer - a new product, a new channel, a new message - and that is an act of creativity. What distinguishes innovation from creativity in general is that the new idea is carried through into something that works commercially.

Answer: A

Correct answer: Product, Promotion , Place

The marketing mix is Product, Price, Place and Promotion. Persuasion and Pride are not part of it; the four were formulated by E. Jerome McCarthy in 1960 and are the controllable variables a firm sets for a chosen target market.

Answer: B

Consumer Protection Act, 1986 is an Act of the Parliament of India enacted in 1986 to protect the interests of consumers in India. It makes provision for the establishment of consumer councils and other authorities for the settlement of consumers’ disputes and for matters connected therewith also.