Marketing Management Questions and Answers

Answer: B

Retailers carry out all the activities involved in selling goods or services directly to final consumers for personal, non-business use, so (B) is correct. That is the standard definition of retailing. Wholesalers in option (A) sell to retailers, institutions and other businesses, and not to the final consumer. Mediators in option (C) and commission agents in option (D) act as intermediaries who bring buyers and sellers together or sell on commission and normally do not take title to the goods or sell to final consumers in the retail sense.

Answer: C

The keyed answer is trade promotion. A wholesaler sells to retailers and other business buyers, so its promotional objective is to get them to stock and sell the goods, and it does this with trade promotion tools such as discounts, allowances and displays. Advertising to the final consumer is chiefly the work of the manufacturer, and direct marketing is used in the main for end consumers. Personal selling is also used by wholesalers, but the key puts trade promotion as the element generally applied. So option C is right.

Answer: B

The matching is: advertising (1) with the promotion mix (III), Kotler (2) with mega marketing (I), low price (3) with penetration price (II), and post purchase behaviour (4) with customer satisfaction (IV), giving III I II IV, option B. Advertising is one element of the promotion mix, mega marketing is the concept put forward by Philip Kotler, a penetration price is a low entry price, and customer satisfaction is judged after purchase. Options A, C and D link items such as Kotler or advertising with the wrong terms.

Answer: A

Statement (A) is correct and reason (R) is incorrect, according to the key. In rural India sales promotion schemes such as free gifts, price offers and samples have a strong effect on consumers, because they are of real value to buyers who are careful with money. The reason says that rural people give the utmost significance to such schemes, which goes too far, since factors such as quality, trust in the shopkeeper and need also weigh with them. So option A is the answer, and option C, which accepts the reason, is wrong.

Answer: A

A market sub-divided on the basis of behavioural characteristics is called segmentation. Behavioural segmentation divides buyers according to their knowledge of the product, their attitude to it, how they use it, the benefits they seek and their loyalty, and each group is a segment. Aggregation is the opposite, combining buyers into one mass market. Precision is not a term in this classification, so options B and C are wrong. The keyed answer is segmentation, option A.

Answer: A

Mass marketing means offering the same product and marketing mix to all consumers. The seller treats the whole market as one, with a single product, price, distribution and promotion, in order to gain from large scale production and distribution. Offering a variety of products to the entire market is a product-variety strategy, offering differentiated products to all customers is differentiated marketing, and concentrating on one segment is concentrated marketing. So option A is the keyed answer.

Answer: D

The product concept is based on the assumption that superior products sell themselves. It holds that consumers prefer the products that offer the best quality, performance and features, so the firm should keep on improving the product and need not push it. The production concept is based on the view that consumers want products that are available and cheap. The marketing concept starts from customer needs, and the societal concept adds the welfare of society. So the keyed answer is option D, the product concept.

Answer: D

In the broader sense marketing communication includes all of the marketing mix, product, price and place as well as promotion. Every element of the mix communicates something to the customer: the product by its design and package, the price by the value it signals, and the place by the outlets in which it is sold. So each of options A, B and C is right and the keyed answer is option D, all. In the narrow sense communication means promotion alone.

Answer: C

Physical distribution provides place and time utility. It gets the goods to the place where the customer wants them, which is place utility, and makes them available when the customer wants them, which is time utility, through transport, warehousing and inventory management. Form utility is created by production, not by distribution. Each of options A and B is true but incomplete, so the keyed answer is place and time utility, option C.

Answer: D

There is no incorrect statement in the list, so the answer is none of the above. Marketers do arouse emotional motives, such as pride, fear and affection, by advertising and design. They do satisfy rational motives, such as price, durability and economy, by the features and value of the product. And they do formulate different sales promotions for different buying motives. Since A, B and C are all true, option D is the keyed answer.