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                                                            c) Public
Unit-1                                                      d) None
                                                         Ans: b
Marketing-An overview/concepts &
Principles/Marketing Process.                            7. Marketers’ selection of advertising media
                                                         reflects their overall promotional strategy for a
PART-A                                                        a) price
                                                              b) product
1. The Marketing Concept, a philosophy of early               c) service
_______ gave marketing a much more important                  d) none
role in business.                                        Ans: b
     a) 1998s
     b) 1950s                                            8. Cundiff and Still have divided the functions of
     c) 1939s                                            marketing into _________ categories.
     d) 1897s                                                a) Three
Ans: b                                                       b) Four
                                                             c) Five
2. A _________ is anything customers will                    d) Eight
exchange something of value for, usually because         Ans: a
it satisfies a need or a want.
     a) service                                          9. G.B. Giles described _________ functions of
     b) product                                          marketing.
     c) physical item                                        a) Six
     d) none                                                 b) Seven
Ans: b                                                       c) Eight
                                                             d) Nine
3. Once you’ve identified your target market, the        Ans: b
next step is to create the ___________
    a) place                                             10. ___________ refers to the real distribution of
    b) price                                             goods from the place of production to the place of
    c) promotion                                         consumption.
    d) marketing mix                                         a) Storage
Ans: d                                                       b) Physical goods
                                                             c) transportation
4. ________are integral to the exchange process,             d) none
without them, there is no marketing.                     Ans: d
    a) products
    b) price                                             11. __________ involves many large risks.
    c) place                                                 a) marketing finance
    d) promotion                                             b) risk bearing
Ans: a                                                       c) market information
                                                             d) pricing
5. __________ is the process of moving the               Ans: b
products from the producer to the consumer.
    a) promotion                                         12. Second important liability of marketing is to
    b) sales                                             control the ___________.
    c) distribution                                          a) Cost of living
    d) none                                                  b) Cost of purchase
Ans: c                                                       c) Cost of distribution
                                                             d) Cost of selling
6. _________ marketer rely heavily on promotion.         Ans: c
    a) Private
    b) Industrial

13. __________ has rightly said, “Marketing is the        20. The Marketing concept rests on ________
business”.                                                pillars.
    a) Peter F. Drucker                                        a) Three
    b) Fillipo Reddy                                           b) Four
    c) Clark and Clark                                         c) Five
    d) None of the above                                       d) Six
Ans: a                                                    Ans: b

14. ________ covers the distribution aspect and           21. A _________ market is defined as a set of
the price mechanism involved in marketing.                actual and potential buyers of a product, service or
    a) production                                         idea.
    b) product                                                a) Consumer
    c) exchange                                               b) Seller
    d) selling                                                c) Target
Ans: c                                                        d) None
                                                          Ans: c
15. The philosophy holds that customers favours
quality, performance, innovative features etc.            22. A buyer, who has interest in the product,
    a) Exchange concept                                   income and willingness to buy can broadly be
    b) Production concept                                 called as ___________
    c) Product concept                                    buyer.
    d) Selling concept                                         a) Target
Ans: c                                                         b) Actual
                                                               c) Integrated
16. The term ___________ is to be credited to                  d) Potential
Prof. Theodore Levitt.                                    Ans: d
    a) Marketing concept
    b) Marketing myopia                                   23. There are _________ types of needs.
    c) Marketing selling                                      a) Three
    d) None of the above                                      b) Four
Ans: b                                                        c) Five
                                                              d) Six
17. This philosophy holds that customers, if left         Ans: c
alone, would not buy enough of the company’s
products-comes under                                      24. Integrated marketing takes place on _______
    a) selling concept                                    levels.
    b) marketing concept                                  a) Two
    c) exchange concept                                   b) Four
    d) none of the above                                  c) Six
Ans: a                                                    d) Eight
                                                          Ans: a
18. One study showed that ________ customers
may bad mouth the product to 10 or more                   25. Acc. to _________ “Marketing comprises both
acquaintances and bad news travels fast.                  buying and selling activities”.
    a) loyal                                              a) J.F. Pyle
    b) dissatisfied                                       b) Clark & Clark
    c) satisfied                                          c) Paul Manure
    d) none                                               d) None of the above
Ans: b                                                    Ans: a

19. The _________ has to be the centre of the             PART-B
business universe and not the organization.
    a) Customer                                           26. Marketing is an effective media of
    b) Seller                                             communication between ________ and ________.
    c) Manager                                                a) society, company
    d) None                                                   b) manager, boss
Ans: a                                                        c) company, staff
                                                              d) none of above
                                                          Ans: a


                                                             b) Modern, customer
27. The rapid development of an underdeveloped               c) Modern, product
country is possible only through the ___________             d) Modern, sales
of marketing.                                             Ans: b
    a) Communication channels
    b) Financial structure                                34. The new concept of marketing emphasis upon-
    c) Modern techniques                                      a) satisfaction of consumer
    d) None of the above                                      b) purchase of goods
Ans: c                                                        c) physical distribution of goods
                                                              d) stresses upon production
28. Astute marketers realize that a product is            Ans: a
actually a “_________” that meets customers’
expectations.                                             35. Identify the physical distribution functions:
    a) Group of rules                                          1. arrangement of finance
    b) Bundle of values                                        2. risk-bearing
    c) Bundle of services                                      3. storage
    d) None of the above                                       4. transportation
Ans: b
                                                             a)    1,2
29. “When u buy a pair of Action shoes endorsed              b)    2,3
by cricket star Kapil Dev, you get more than                 c)    2, 4
leather, rubber and laces”- is an example of                 d)    3, 4
    a) Product                                            Ans: d
    b) Price
    c) Distribution                                       36. Auxiliary functions are the functions which
    d) Place                                              make the process of marketing _________ &
Ans: a                                                    _________.
                                                              a) easy, convenient
30. The Industrial Revolution of the eighteenth               b) hard, soft
century was the beginning of the __________ era,              c) hard tough
which lasted until the late _______.                          d) none of the above
    a) production, 1920s                                  Ans: a
    b) sales, 1930
    c) marketing, 1950                                    37. The societal marketing concept calls upon
    d) none of the above                                  marketers to build ________ & _________
Ans: a                                                    consideration into their marketing places.
                                                              a) Political, moral
31. The delivery of goods and services from                   b) Environmental, social
producers to their ultimate consumers or users                c) Social, ethical
include may different activities, these different             d) None of the above
activities are known as-                                  Ans: c
     a) Merchandising function
     b) Marketing functions                               38. Old concept is the ___________ concept of
     c) Standardizing function                            marketing which says that marketing is a part of
     d) None of the above                                 __________ process.
Ans: b                                                        a) classical, production
                                                              b) traditional, customer
32. The _________ & _________ of market would                 c) marketing, selling
enable the marketers to design specific marketing             d) none of the above
strategies.                                               Ans: a
    a) specification, identification
    b) definition, explanation                            39. Prof. Paul Manure, “Marketing is the delivery
    c) specification, explanation                         of __________________”.
    d) none of the above                                      a) goods to consumer
Ans: a                                                        b) services to customers
                                                              c) standard of living to the society
33. _________ concept of marketing is a                       d) none of the above
____________ oriented concept.                            Ans: c
    a) Traditional, customer


40. Customers will pay a higher price for a well         d) 1,4,5,7,8
known, well-regarded product, partly because of       Ans: c
the image created through __________ & other
__________.                                           44. Auxiliary functions include:
     a) advertising, promotions                           1. arrangement of finance
     b) label, brand                                      2. purchase and collection
     c) brand, techniques                                 3. risk-bearing
     d) none of the above                                 4. sales
Ans: a                                                    5. collection of market information
                                                          6. transportation
                                                         a)      1,3,5
41. Marketers divide products into three                 b)      1,2,3,5,6
categories:                                              c)      2,3,5,6
    1. goods or physical items                           d)      1,3,4,5,6
    2. services, or activities that provide some      Ans: a
        value to the recipient
    3. ideas, or concepts that provide intellectual   45.
        or spiritual benefits to the customer
    4. at least two parties must be involved
    5. each party must be able to communicate
        and deliver
    a) 1,2,4,5                                        Production Era                (A)------------   Marketing Era
    b) 2,3,4,5                                                          1930 ----      1950              Present
                                                      Industrial Revolution
    c) 1,2,3
    d) 1,2,3,4,5
 Ans: c                                               In the above diagram (A) refers to-
                                                           a) Research era
42. Identify the five conditions necessary for             b) Material era
successful exchange-                                       c) Finance era
    1. at least two parties must be involved               d) Sales era
    2. each party must have something that            Ans: d
        interest the other party
    3. each party must be able to communicate         46. Importance of marketing to the society
        and deliver                                   includes-
    4. each party must be free to accept or reject         1. delivery of standard of living to the society
        any offer from the other party                     2. helpful in business planning and decision
    5. each party must consider it desirable, or at           making
        least acceptable, to deal with the other           3. decrease in distribution cost
        party                                              4. increasing employment opportunities
              a) 1,2,3,4                                   5. protection against business slump
              b) 3,4,5                                     6. increase in national income
              c) 1,3,4,5                                   a) 1,2,3,4,5
              d) 1,2,3,4,5                                 b) 2,3,4,5,6
Ans: d                                                     c) 1,3,4,5,6
                                                           d) 1,2,3,4,5,6
43. Merchandizing functions include:                  Ans: c
    1. product planning and developments
    2. standardization and gradation                  47. Identify the Marketing concepts:
    3. storage                                             1. The Exchange concept
    4. transportation                                      2. The production concept
    5. risk-bearing                                        3. The performance concept
    6. purchase and collection                             4. The product concept
    7. sales                                               5. The marketing concept
    8. arrangement of finance                              6. The customer concept
                                                           7. The societal marketing concept
    a) 1,3,4,5,7,8
    b) 2,3,5,6,8                                            a) 1,2,3,4,5
    c) 1,2,6,7                                              b) 1,4,6,7


   c) 1,2,3,4,5,6
   d) 1,2,4,5,7                                        PART-A
Ans: d                                                 51. The ________ environment includes those
                                                       stakeholders which have the closest and most
48. Match the following:                               direct relationships with the business.
SET A                                                      a) Micro
    1. Social facet                                        b) Macro
    2. political facet                                     c) Political
    3. technological facet                                 d) None
    4. economic facet                                  Ans: a

SET B                                                  52. ___________ are a critical link with the
   a) it should not be confused with high-tech         environment, a source of cost and also of possible
   b) it involves ethical and moral consideration      partnership.
   c) it consists of financial markets, sources of         a) Shareholder
      capital, product and services                        b) Supplier
   d) it consists of the laws & regulations                c) Competitor
      applicable to the enterprises and the                d) None
      courts and govt. officials.                      Ans: b

                       A)   1-c, 2-d, 3-a, 4-b         53. ___________ firm can supply all its own
                       B)   1-b, 2-d, 3-a, 4-c         needs.
                       C)   1-d, 2-b, 3-a, 4-c             a) some
                       D)   1-b, 2-a, 3-d, 4-c             b) all
Ans: b                                                     c) no
                                                           d) big
49. The different elements of marketing analysis       Ans: c
     a) marketing audit                                54. The wider environment over which the
     b) current market position                        organization can exert little influence is often
     c) environment audit                              referred to by the acronym __________.
     d) SWOT analysis                                      a) PEST
     e) Establishing objectives                            b) PEET
     f) Nature of environmental threats &                  c) PSET
        opportunities                                      d) TESP
                                                       Ans: a
   A)    a,b,c,d
   B)    a,c,d,e                                       55. This is perhaps the most difficult environment
   C)    b,c,d,e,f                                     for the marketer to identify, evaluate and respond
   D)    a,b,c,d,e,f                                   to. Comes under-
Ans: b                                                      a) political
                                                            b) social
50. Structure of the market audit:                          c) economic
    1. the organization’s environment                       d) technical
    2. it’s marketing system                           Ans: b
    3. the evaluation of past performance and
        present activities                             56. The _________ may materialize in many
    4. the identification of future opportunities &    forms, for example different materials, an
        threats                                        alternative technology or a new distribution
    5. it’s marketing activities                       channel.
                                                            a) Price
   a)    1,2,4,5                                            b) Strength
   b)    1,2,3,4                                            c) Opportunities
   c)    1,2,5                                              d) Threat
   d)    2,3,4,5                                       Ans: d
Ans: c
                                                       57. Higher the _________ and excess _________,
Unit-2                                                 the greater the incentives to search for and
Market Segmentation                                    develop substitutes.


            a)   price, profitability                      a)    Cat
            b)   sales, price                              b)    Monkey
            c)   customer, profitability                   c)    Lion
            d)   none of the above                         d)    Man
Ans: a                                                  Ans: d

58. ___________ analysis, suggested that                65. _________ is defined as changes in the
profitability partly depended on the relative           behaviour of an individual arising from the past
bargaining power of the parties.                        practice or previous experience.
    a) Michael                                              a) Beliefs & attitudes
    b) Porter                                               b) learning
    c) Ducker                                               c) personality
    d) None                                                 d) none
Ans: b                                                  Ans: b

59. The individual or function who sanctions any        66. An _________ is a state of mind or feeling.
aspects of a purchasing process.                            a) emotions
    a) decider                                              b) respect
    b) initiator                                            c) attitude
    c) gatekeeper                                           d) none
    d) user                                             Ans: c
Ans: a
                                                        67. There are _________ types of families in the
60. __________ behaviour encompasses all the            buyer’s life.
actions involved in selecting, purchasing, using            a) two
and disposing of goods and services.                        b) three
    a) Supplier                                             c) four
    b) Retailer                                             d) none
    c) Consumer                                         Ans: a
    d) None
Ans: c                                                  68. A __________ group is a group of people with
                                                        whom an individual associates.
61. The consumer __________ process is                      a) family
influenced by buyer characteristics as well as              b) roles & status
marketing & other stimuli.                                  c) reference
     a) decision                                            d) none of the above
     b) idea                                            Ans: c
     c) social
     d) none                                            69. __________ is the most fundamental
Ans: a                                                  determinant of a person’s wants and behaviour.
                                                            a) culture
62. Acc. to William J Stanton: “A _________ can             b) role
be defined as a drive or an urge for which an               c) status
individual seeks satisfaction.                              d) none
     a) Perception                                      Ans: a
     b) Motive
     c) Distortion                                      70. __________ income refers to the aggregate
     d) None                                            income of all the members of the family.
Ans: b                                                      a) Family
                                                            b) Friends
63. _________ is the force that activates goal-             c) Personal
oriented behaviour.                                         d) None
    a) Motivation                                       Ans: a
    b) Perception
    c) Selection                                        PART-B
    d) None
Ans: a                                                  71. Shareholder provide the _________ capital
                                                        while creditors such as banks provide _________
64. _________ is a perceptual wanting animal.           and medium-term funds.


   a)    longer-term, short
   b)    short-term, long                             78. ________ can range from non-existence
   c)    medium, long                                 through gentlemanly understanding to
   d)    medium, short                                ___________ competition.
Ans: a                                                    a) rivalry, cut-throat
                                                          b) complexity, existence
72. Most business have employees who contribute           c) reality, cut-hand
their time and skills for ________ & other                d) none of the above
__________.                                           Ans: a
     a) Play, reasons
     b) Habit, wants                                  79. A key part of competitors analysis is assessing
     c) monetary, rewards                             their _________ & _________.
     d) play, rewards                                      a) strength, weakness
Ans: c                                                     b) product, price
                                                           c) strategies, plan
73. PEST refers to-                                        d) none of the above
    a) priority, ecology, simple, transfer            Ans: a
    b) political, economic, social, technical
    c) political, ecological, sales, transfer         80. The final area in conducting the
    d) none of the above                              ________________ concerns the all important
Ans: b                                                analysis of competition before the development of
                                                      strategic marketing plans.
74. Technical environment is characterized by             a) marketing segmentation
accelerating rates of change in the means,                b) marketing audit
_________ & _________ that organization utilizes          c) customer purchase
in the supply chain.                                      d) none of the above
     a) Invention, innovation                         Ans: b
     b) Invention, environment
     c) methods, knowledge                            81. Consumer buying behaviour refers specifically
     d) none of the above                             to the actions consumer take when deciding
Ans: c                                                ________ to buy and _________ making the
                                                      actual purchase.
75. ___________ & ___________ change may                   a) How, where
often appear to change slowly, yet their impacts           b) What, how
are likely to far outweigh the consequences of             c) what, when
political decision over the longer term.                   d) none of the above
     a) social, demographic                           Ans: c
     b) political, environmental
     c) social, environmental                         82. Human needs have been classified by
     d) none of the above                             Abraham H. Maslow and called it
     Ans: a                                           _______________.
                                                          a) Hierarchy of wants
76. Businesses earn profit by being more                  b) Hierarchy of needs
________ than __________ in creating and                  c) Chart of organization
delivering value to the customer overtime.                d) None of the above
     a) successful, competitors                       Ans: b
     b) reliable, others
     c) punctual, some                                83. Under selective _________, people who notice
     d) none of the above                             the same ________ may not interpret them in the
Ans: a                                                same way as intended by the marketers.
                                                          a) Distortion, stimuli
77. Michael Porter, in his book competitive               b) Exposure, motivation
_________ and competitive ___________                     c) Perception, learning
provided a five-forces model of industry structure.       d) None of the above
    a) Planning, tactics                              Ans: a
    b) strategy, advantage
    c) staffing, planning                             84. _________ class consumers purchase
    d) none of the above                              carefully and collect information to compare
Ans: b


different producers in the same line and lower         Ans: a
class consumer buy on _________.
     a) High, impulse                                  PART- C
     b) Middle, impulse
     c) Lower, impulse                                 91. Identify Maslow’s five level Hierarchy of
     d) None of the above                              needs:
Ans: b                                                     1. self actualization
                                                           2. esteem needs
85. ________ assets refers to those assets which           3. standard needs
can be converted into cash quickly without any             4. socio-culture needs
_________.                                                 5. work needs
    a) solid, profit                                       6. safety or security needs
    b) consumer, complaint                                 7. family needs
    c) liquid, loss                                        8. physiological needs
    d) none of the above
Ans: c                                                    a)    1, 2, 4, 6, 8
                                                          b)    1,2,3,4,5,6,7
86. Technological advances contribute to the              c)    21,3,4,5,7,8
__________ & ___________ of modern goods.                 d)    1,2,3,4,5,6
    a) Objectives, policies                            Ans: a
    b) production, availability
    c) interests, authority                            92. Match the following:
    d) none of the above
Ans: b                                                 SET A
                                                          a)    personal sources
87. Fear is a _________ motive to satisfy their but       b)    commercial sources
is a very __________ one.                                 c)    public sources
     a) negative, powerful                                d)    experiential sources
     b) positive, powerful
     c) actual, unique                                 SET B
     d) none of the above                                 1. advertisement, salesmen, dealers
Ans: a                                                    2. family, friends, neighbour
                                                          3. mass-media ,consumer rating
88. The __________ process of spreading                      organizations
information about new products and services to            4. handling, examining, using the product
persuade consumers to accept them is known as
__________.                                               A)    a-4, b-3, c-2, d-1
     a) Political. Economic                               B)    a-2, b-3, c-1, d-4
     b) social, diffusion                                 C)    a-1, b-2, c-3, d-4
     c) technological, diversion                          D)    a-2, b-1, c-3, d-4
     d) none of the above                              Ans: d
Ans: a
                                                       93. Identify the stages of buying process:
89. ____________ needs are the basic needs and              1. need arousal
until they are satisfied other needs are of                 2. personal sources
________ importance.                                        3. information search
     a) Safety, more                                        4. evaluation behaviour
     b) Love needs, equal                                   5. purchased decision
     c) physiological, no                                   6. post purchase feelings
     d) none of the above                                   7. buying motives
Ans: c
                                                          a)    1,3,4,5,6,7
90. The ________ image results from all the               b)    1,2,3,4,5,6
impression ___________ receives about a                   c)    2,3,4,5,6,7
particular manufacturer’s brand.                          d)    1,2,3,4,5,6,7
    a) brand, consumers                                Ans: a
    b) self, producers
    c) self, consumer                                  94. Match the following:
    d) none of the above


SET A                                                      b) 2,3,5,6,7
   1.    Geographic Segmentation                           c) 1,2,4,5,6,7
   2.    demographic Segmentation                          d) 5,6,7
   3.    psychographic segmentation                     Ans: a
   4.    Behavioural Segmentation
                                                        98. Match the following:
SET B                                                   SET A
                                                            a) single segment concentration
    a) Age, religion, family size, occupation               b) selective specialization
    b) country, region, state, city, community              c) Product specialization
    c) product usage, consumer needs, brand                 d) Market specialization
       loyalty                                              e) Full market coverage
    d) life style, activities, opinions, beliefs
                                                        SET B
   a)    1-a, 2-b, 3-d, 4-c                                1. This pattern has the advantage of
   b)    1-b, 2-c, 3-a, 4-d                                     diversifying the firm’s risk.
   c)    1-b, 2-c, 3-d, 4-a                                2. The firm specializes in making a certain
   d)    1-b, 2-a, 3-d, 4-c                                     product that it sells to several segments.
Ans: d                                                     3. Concentrated market involves higher than
                                                                normal risks.
95. Identify the criteria to evaluate segments-            4. Only very large firms can undertake this
    1. sales and profit potential                               strategy.
    2. fit with company resources                          5. Firm concentrates on serving many needs of
    3. competitive environment                                  a particular customer group.
    4. cost to reach the segment
    5. environmental safety                                A.    a-5, b-4, c-3, d-2, e-1
    6. growth                                              B.    a-3, b-1, c-5, d-2, e-4
                                                           C.    a-1, b-3, c-2, d-5, e-4
     a) 1,2,3,4,6                                          D.    a-3, b-1, c-2, d-5, e-4
     b) 1,3,4,5,6                                       Ans: d
     c) 1,2,3,4,6
     d) 2,4,5,6                                         99. Social Factors includes:
Ans: a                                                      1. personality
96. Identify the types of market segmentation:              2. learning
              1. territorial or graphic segmentation        3. beliefs and attitudes
              2. demographic segmentation                   4. family
              3. socio-psychological segmentation           5. reference group
              4. need-oriented segmentation                 6. roles & status
              5. volume segmentation                        7. culture
              6. product segmentation                       8. social class
              7. lifestyle segmentation
              8. quantitative segmentation                 a)    1,3,4,7,8
                                                           b)    4,5,6
   a)    1,2,4,5,6,7,8                                     c)    1,2,3,4,5,7,8
   b)    2,3,4,6,7,8                                       d)    1,2,3,4,5,8
   c)    1,2,3,4,5,7,8                                  Ans: b
   d)    1,2,3,4,5,6,7,8
Ans: d                                                  100. Economic Factors includes:
                                                            1. personal income
97. Identify the basis for industrial product:              2. family income
    1. kind of business                                     3. income expectation
    2. usual purchasing procedure                           4. savings
    3. size of user                                         5. liquid assets of the consumer
    4. geographical market segmentation                     6. consumer credit
    5. income of the consumer                               7. other economic factors
    6. age of the consumer                                  a) 1,2,4,5,7
    7. gender of the consumer                               b) 1,3,4,5,7
                                                            c) 2,3,4,5,7
    a) 1,2,3,4                                              d) 1,2,3,4,5,6,7


Ans: d                                                              c) logo
                                                                    d) none
                                                       Ans: a

                                                       107. “Raymonds” is an example of –
                                                           a) manufacturer brand
Unit-3                                                     b) private brand
Product management, Distribution                           c) generic brand
management, Price & Pricing policies                       d) none
                                                       Ans: a
                                                       108. Product is a tool in the hands of __________.
101. When you purchase a product, you expect                      a) management
__________ than just the basic product features.                  b) labeling
    a) more                                                       c) product mix
    b) less                                                       d) none
    c) equal                                           Ans: a
    d) none
Ans: a                                                 109. One major management aspect involved in
                                                       product policy is the decision concerning
102. A company’s complete assortment of product        _________
lines and items is referred to as its ____________         a) promotion support
     a) market mix                                         b) information
     b) service mix                                        c) product mix
     c) product mix                                        d) none
     d) none                                           Ans: c
Ans: c
                                                       110. _________ refers to the sizes, colors and
103. Durable goods are goods that used or              models offers within each product line.
consumed over along period of time, usually at             a) depth
least ___________ years.                                   b) breadth
    a) two                                                 c) vertical
    b) three                                               d) none
    c) four                                            Ans: a
    d) five
Ans: b                                                 111. ___________ is measured by the number of
                                                       variety of products manufactured by a single
104. ___________ goods include products such           manufacturer.
as grocery items, gasoline and office supplies.
    a) durable                                            a)    depth
    b) non-durable                                        b)    breadth
    c) convenience                                        c)    horizontal
    d) none                                               d)    none
Ans: b                                                 Ans: b

105. Home appliances, video cameras, furniture,        112. __________ is the first stage of the product
building materials & jet airplanes are the example     life cycle.
of:                                                         a) Introduction
            a) consumer item                                b) Starting
            b) durable goods                                c) Decline
            c) non-durable goods                            d) None
            d) none                                    Ans: a
Ans: b
                                                       113. In _________ stage competition increases.
106. The ___________ that make up a product                a) Growth
include features, branding, packaging, labeling            b) Maturity
and supporting goods & services.                           c) Saturation
             a) elements                                   d) Decline
             b) product                                Ans: b


                                                                 c) Four
114. Fresh efforts are made in this stage to                     d) Five
improve the product.                                 Ans: b
    a) introduction
    b) growth                                        122. _________ is a must for marketing activities.
    c) saturation                                        a) product
    d) decline                                           b) dimension
Ans: c                                                   c) service
                                                         d) none
115. _________ refers to a group of products that    Ans: a
are closely related.
    a) product line                                  123. The advertisement and distribution costs
    b) product demand                                increase in order to make the product service.
    c) product strategy                              Comes under-
    d) none                                              a) introduction
Ans: a                                                   b) growth
                                                         c) maturity
116. Test marketing reduces __________                   d) none
    a) profit                                        Ans: c
    b) risk
    c) sales                                         124. Planning a product comes under __________
    d) none                                          phases.
Ans: b                                                   a) six
                                                         b) eight
117. The ultimate aim of producing a commodity is        c) five
___________.                                             d) Three
    a) selling                                       Ans: d
    b) purchasing
    c) producing                                     125. The new product development process
    d) none                                          marketer follow a _________ step process to
Ans: a                                               develop new products.
                                                         a) Five
118. __________ are important only to the extent         b) Six
that they provide benefits.                              c) Seven
     a) Tangible                                         d) None
     b) Features                                     Ans: b
     c) Intangible
     d) None                                         PART-B
Ans: b
                                                     126. Relatively inexpensive products that buyers
119. Unique or specialized products that are the     or users choose frequently with a minimum of
most costly & that are unique comes under-           thought & effort.
    a) convenience products
    b) shopping products                                         a) consumer products
    c) speciality products                                       b) convenience products
    d) none of the above                                         c) shopping products
Ans : c                                                          d) specialty products
                                                     Ans: b
120. The business name under which an
organization operates.                               127. The portion of a brand that cannot be
    a) trade name                                    expressed verbally, such as a graphic design or
    b) trademark                                     symbol.
    c) service mark                                             e) Brand name
    d) none of the above                                        f) Brand mark
Ans: a                                                          g) Logo
                                                                h) Trade name
121. The product mix is __________ dimensional.      Ans: b
            a) Two
            b) Three                                 128. There are _________ types of brands.


   a)    Three                                              a)    Karl H. Tietjing
   b)    Four                                               b)    Karl Marx
   c)    Six                                                c)    Wilson Hareder
   d)    seven                                              d)    None of the above
Ans: a                                                   Ans: a

129. Basmati Rice is an example of __________            136. The very first factor affecting the selection of
brand.                                                   a channel of distribution is the availability of
    a) Manufacturer                                      ________________ with a manufacturer.
    b) Private                                               a) Marketing experience
    c) Generic                                               b) financial resources
    d) None                                                  c) managerial ability
Ans: c                                                       d) none of the above
                                                         Ans: b
130. Packaging has _________ important
functions.                                               137. If the product is of __________ nature, it
    a) two                                               must be distributed within __________ possible
    b) three                                             time.
    c) four                                                  a) Ordered, longest
    d) five                                                  b) Technical, shortest
Ans: a                                                       c) perishable, shortest
                                                             d) none of the above
131. Product line contraction is known as                Ans: c
contraction of of ____________.
    a) Product line                                      138. A very important consideration affecting the
    b) Product expansion                                 selection of a particular channel of distribution is
    c) product mix                                       the nature of _________ or the _________.
    d) none                                                  a) Policies, market
Ans: c                                                       b) market, product
                                                             c) services, policies
132. Trading ________& trading ________ are the              d) none of the above
two forms of the strategy of product change in a         Ans: b
new market.
    a) up, down                                          139. The _________ step is to adjust and manage
    b) right, left                                       __________in response to particular situations or
    c) north, south                                      changing market conditions.
    d) none of the above                                     a) final, prices
Ans: a                                                       b) starting, prices
                                                             c) second, prices
133. It is just the opposite of the product line             d) none of the above
contraction and is referred to diversification.          Ans: a
    a) product line expansion
    b) product line contraction                          140. A manufacturer charges different prices from
    c) trading up & down                                 different consumers for one and the same
    d) none of the above                                 products, it is known as-
Ans: a                                                        a) price discrimination
                                                              b) price specific
134. Product ideas require preliminary                        c) selected price
__________ and __________.                                    d) none of the above
    a) screening, evaluation                             Ans: a
    b) research, production
    c) possibility, methods
    d) none
Ans: a

135. ___________ defines product planning “as             PART-C
the act of making out and supervising the search
screening, develop and commercialization of new          141. Cost based pricing includes:
products.                                                    a) mark up pricing


    b)   absorption cost                                 6. adequate servicing where required after
    c)   target pricing                                      the production is sold
    d)   premium pricing                                 7. ultimate replacement
    e)   tender pricing                                  a) 1,2,3,6,7
    f)   marginal cost pricing                           b) 1,3,4,5,6
                                                         c) 1,2,4,5,6,7
   A)    a,b,c,d                                         d) 1,2,3,4,5,6,7
   B)    a,b,c,f                                      Ans: d
   C)    a,c,d,e,f
   D)    a,b,c,d,f                                    146. Match the following:
Ans: b                                                SET A
                                                          1. Brand
142. Identify the factors related to product-             2. Brand name
    1. number of consumers                                3. Brand mark
    2. regional concentration                             4. Logo
    3. size of orders                                 SET B
    4. nature of market                                   a) a unique symbol that represents a specific
    5. policies of competitors                               firm or organization, or a brand name
    a) 1,2,3,4,5                                             written in a distinctive type style
    b) 2,4,5                                              b) a name, term, phrase, design symbol or
    c) 1,2,3,5                                               any combination of these chosen by an
    d) None of the above                                     individual or org. to distinguish a product
Ans: d                                                       from competing products
                                                          c) the portion of a brand that can be
143. Factors affecting the selection of channels of          expressed verbally such as a graphic
distribution-                                                design
     1. Factors related to the manufacturers              d) the portion of a brand that cannot be
     2. Factors related to services                          expressed verbally
     3. Factors related to the product                 A) 1-c, 2-b, 3-d, 4-a
     4. Factors related to the market                  B) 1-d, 2-c, 3-b, 4-a
     5. Factors related to output                      C) 1-a, 2-c, 3-d, 4-b
     6. Factors related to the environment             D) 1-b, 2-c, 3-d, 4-a
     a) 1,3,4,6                                       Ans: d
     b) 1,2,3,4,5
     c) 1,2,4,5,6                                     147. Arrange in sequence different stages of
     d) 1,3,4,5,6                                     product life cycle:
Ans: a                                                    1. introduction
                                                          2. growth
144. Arrange in steps “The new product                    3. maturity
development process”.                                     4. decline
    1. Generate new ideas                                 5. saturation
    2. develop the product                                6. obsolescence
    3. commercialize product
    4. analyze the product concept & potential           a)    1,2,3,5,4,6
    5. test product & marketing mix                      b)    1,2,3,6,5,4
    6. screen ideas                                      c)    1,3,2,4,6,5
    a) 1,2,3,4,6,5                                       d)    1,2,3,4,5,6
    b) 1, 6, 4, 2, 5, 3                               Ans: a
    c) 2,4,5,6,1,3
    d) 1,2,3,4,5,6                                    148. Match the following:
Ans: b
                                                      SET A
145. Basics requirements of new products:                1. Manufacturer brand
    1. customer or consumer acceptance                   2. Private brand
    2. satisfactory performance                          3. Generic brand
    3. economical production
    4. adequate distribution in depth and breadth
    5. effective packaging and branding               SET B
                                                         a) Basmati rice


    b) Raymonds
    c) Nanz or Nilgiri                              PART-A

   A)    1-c,2-b,3-a                                151. Promotion is the ___________ major
   B)    1-b,2-a,3-c                                important component of company’s total marketing
   C)    1-a,2-c,3-b                                mix.
   D)    1-b,2-c,3-a                                    a) Three
Ans: d                                                  b) fourth
                                                        c) fifth
149. Match the following:                               d) sixth
                                                    Ans: b
   1.    Personal sources                           152. _________ is the final element in the
   2.    commercial sources                         marketing mix.
   3.    public sources                                 a) selection
   4.    experiential sources                           b) objective
                                                        c) publicity
SET B                                                   d) promotion
   a)    handling, examining, using the product     Ans: d
   b)    family, friends, neighbours
   c)    advertisements, salesmen, dealers          153. ___________ is necessary in exchange
   d)    mass media, consumer-rating organization   activities.
                                                         a) Communication
   A)    1-b,2-c,3-d,4-a                                 b) Promotion
   B)    1-b,2-c,3-d,4-a                                 c) Selection
   C)    1-b,2-c,3-d,4-a                                 d) None
   D)    1-b,2-c,3-d,4-a                            Ans: a
Ans: a
                                                    154. Sales promotion means any steps that are
150. Match the following:                           taken for the purpose of obtaining or increasing
SET A                                               sales.
    1. Geographic segmentation                          a) A.H.R Delens
    2. demographic segmentation                         b) L.K. Johnson
    3. psychographic segmentation                       c) Philip kotler
    4. behavioural segmentation                         d) None of the above
                                                    Ans: a
   a) A way of dividing large markets into          155. The term___________ has been defined by
      smaller grouping according to country,        many eminent authors.
      region, state, city, community or block                   a) Sales promotion
      division                                                  b) Personal selling
   b) Include tooth-paste market which is                       c) Advertising
      segmentation on the basis of benefits and                 d) Public relation
      middle-additives                              Ans: a
   c) Include segmentation for various holiday
      packages                                      156. Personal selling means the performance of
   d) Applied to books, cosmetics, clothes,         actual _________ activity.
      washing machines, refrigerators and to            a) Advertising
      entertainment industry                            b) Selling
                                                        c) Incentive
   A)    1-b, 2-d,3-c,4-a                               d) None
   B)    1-a, 2-c,3-d,4-b                           Ans: b
   C)    1-a, 2-d,3-c,4-b
   D)    1-d, 2-a,3-b,4-c                           157. Wood, “Advertising is causing to know, to
Ans: c                                              __________, to do”.
                                                               a) getting
Unit-4                                                         b) remember
Sales promotion & advertising, sales                           c) selling
marketing                                                      d) none


Ans: b                                               165. Under skywriting the words stay in the sky for
                                                     some __________
158. _________ is considered to be the most              a) hours
popular media of advertisement these days.               b) minutes
    a) Press                                             c) seconds
    b) Delhi Doordarshan                                 d) none
    c) Cinema                                        Ans: c
    d) None
Ans: a                                               166. _________ is considered to be the cheapest
                                                     and most popular medium of entertainment these
159. __________ advertisement are the                days.
advertisement which attract the customers when           a) Outdoor
they are out of their home.                              b) Indoor
    a) in house                                          c) Cinema
    b) out house                                         d) None
    c) outdoor                                       Ans: c
    d) indoor
Ans: c                                               167. Any activity which is performed with the
                                                     object of promoting sales is called __________
160. The __________ is important because it has      activity.
the capability of sending silent messages.                a) sales promotional
             a) Service                                   b) personal selling
             b) design                                    c) marketing mix
             c) environment                               d) none
             d) none                                 Ans: a
Ans: c
                                                     168. Gifts go on increasing with the increase in the
161. Physical evidence is yet another marketing      quantity at purchases by these dealers and
tool available to the __________ marketer.           distributors.
     a) service                                           a) Cheap gifts
     b) product                                           b) free gifts
     c) material                                          c) costly gifts
     d) none                                              d) none of the above
Ans: a                                               Ans: b

162. The good marketers have discovered the          169. Under this method, procedures allow credit to
potential of ___________                             their dealers & distributors for a certain period.
    a) sampling                                           a) quantity discount
    b) servicing                                          b) incentives to salesman
    c) packaging                                          c) suitable credit policy
    d) none                                               d) meeting & seminars
Ans: c                                               Ans: c

163. Under _________, production of the service      170. Publicity is a ____________ stimulation of
& consumption occurs at the same time.               demand which is not paid for.
    a) Heterogeneity                                     a) non-personal
    b) Intangibility                                     b) personal
    c) Inseparability                                    c) advertisement
    d) None of the above                                 d) none
Ans: c                                               Ans: a

164. Under this form of advertising, a rickshaw or   PART-B
a tonga or a car etc. is hired-
    a) fair & exhibition                             171. William J. Stanton, “Sales promotion is an
    b) cinema                                        exercise in ___________, persuasion
    c) radio                                         and_________”.
    d) loud-speaker                                      a) information, influence
Ans: d                                                   b) advertising, publicity
                                                         c) information, publicity


   d) none of the above                               c) skywriting, fair
Ans: a                                                d) none of the above
                                                   Ans: a
172. Main tools of sales promotion are-
    1. consumer promotion method                   179. This method is very useful for the products
    2. trade fair methods                          which need a wide appeal.
    3. dealers promotion method                        a) Direct mail advertising
    4. reduction in price                              b) Press advertising
    a) 1 & 3                                           c) Outdoor or mural advertising
    b) 1 & 4                                           d) None of the above
    c) 2 & 3                                       Ans: c
    d) 2 & 4
Ans: a                                             180. It is done to enhance the company’s image to
                                                   promote its viewpoint & provide information about
173. Personal Selling is quite _________ &         its products.
_________                                               a) Competition
    a) direct, personal                                 b) Free samples
    b) indirect, personal                               c) Other means
    c) simple, straight                                 d) Publicity
    d) none of the above                           Ans: d
Ans: a
                                                   181. Promotion refers to the activities to push
174. Advertising helps in ____________ &           forward or to advance an idea, in such a way as to
__________ a products position.                    gain ____________ & _________.
    a) Selecting, selling                              a) approval, acceptance
    b) improving, changing                             b) persuade, inform
    c) selecting, changing                             c) persuade, influence
    d) none of the above                               d) none of the above
Ans: b                                             Ans: a

175. Products have both __________ &               182. Sales promotion is a ______________
_________ characteristics.                         incentives to encourage the purchase & sale of a
    a) Good, soft                                  product.
    b) tangible, intangible                            a) long-term
    c) hard, strong                                    b) short-term
    d) none of the above                               c) public
Ans: b                                                 d) private
                                                   Ans: b
176. ____________ & ___________ involves a
process of process of operational performed,       183. In ________ stage, advertising is normally
utilizing materials, equipment and personnel.      reduced or eliminated altogether if it cannot
      a) service production, delivery              _________.
      b) proper delivery, service                      a) Growing, survive
      c) environment, service                          b) Growing, revive
      d) none of the above                             c) decline, revive
Ans: a                                                 d) none of the above
                                                   Ans: c
177. Promotion is _________ & __________.
    a) Scheme, selling                             184. _________ Buskirk, “Personal selling
    b) telling & selling                           consists of contacting prospective buyers of
    c) asking, performing                          __________ personally”.
    d) none of the above                               a) Richard, product
 Ans: b                                                b) Simon, place
                                                       c) William, service
178. Advertisement through ________ &                  d) None of the above
_________ is becoming more and more popular        Ans: a
these days.
    a) radio, television                           185. It develops faith among the consumers about
    b) fairs, exhibition                           the quality of product, comes under-


   a)    demonstration                                        3. sales promotion encourage dealers and
   b)    money back guarantee                                    distributors to sell the product more
   c)    after-sale-service                                   4. sales promotion encourages consumers
   d)    none of the above                                       also to buy the product
Ans: c
                                                           a)    1,2,3,4
186. At _________ & ________, all the problems             b)    1,2,3
of middlemen are discussed and solved.                     c)    2,3,4
    a) Lectures, discounts                                 d)    1,2,4
    b) meeting, seminars                                Ans: a
    c) training, gifts
    d) none of the above                                192. Identify the objectives of sales promotion:
Ans: b                                                      1. to introduce a new product into a market
                                                            2. to attract new consumer to buy the
187. The _________ products with good package,                  product
fair price etc. cannot be sold unless __________            3. to maintain present consumers and to
knows it.                                                       encourage them to buy more
     a) best, buyers                                        4. to encourage dealers and distributors to
     b) rest, sellers                                           purchase the product in bulk quantity
     c) cheap, buyers                                       5. to maximize the reduction in sales during
     d) none of the above                                       the season
Ans: a
                                                           a)    1,2,4,5
188. In __________ relation, building good                 b)    2,3,4,5
relations with the company’s various clients by            c)    1,2,4,5
obtaining ________ response.                               d)    1,2,3,4
     a) public, favourable                              Ans: d
     b) private, unfavourable
     c) public, unfavourable                            193. Intangible components includes-
     d) none of the above                                   1. size
Ans: a                                                      2. quality
                                                            3. image
189. _________ promotional is very beneficial to            4. size
the ___________.                                            5. prestige
    a) purchase, producers                                  6. features
    b) sales, seller                                        7. warranty
    c) sales, manufacturers                                 8. durability
    d) none of the above                                    9. brand name
Ans: b                                                      10. package

190. A ___________ is a certificate which enable           a)    1,2,3,4,6,7,9
a consumer to get a certain discount on the                b)    1,2,3,5,7,9
purchase of a particular product.                          c)    1,3,4,5,6,7,8,9,10
    a) Trade fair                                          d)    1,3,4,5,6,7,8,9,10
    b) Special prize                                    Ans: b
    c) discount coupon
    d) free gift                                        194. Tangible components-
Ans: c                                                      1. size
                                                            2. brand name
PART-C                                                      3. warranty
                                                            4. taste
191. Identify the characteristics of sales                  5. package
promotion:                                                  6. colour
    1. Sales promotion does not include                     7. quality
        advertising, personal selling and publicity.        8. prestige
    2. sales promotion helps in selling and it
        makes advertisement and personal selling              a) 1,2,3,4,7,8
        easy & effective                                      b) 1,3,4,7,8
                                                              c) 1,4,5,6


   d) 1,2,3,5,6,7,8
Ans: c                                                       a)    1,2,3,4,5,6
                                                             b)    1,2,4,5,6
195. Salient features of direct mail advertising-            c)    1,3,4,5,6
                                                             d)    2,3,4,6
         1) the advertisement message are                 Ans: b
             prepared in writing
         2) these message are addressed                   198. Match the following:
             directly to some selected persons
         3) these are the most cheapest and               SET A
             most popular medium of                          1. Demand objectives
             entertainment                                   2. communication objectives
         4) the message may be different for                 3. performance objectives
             different persons
         5) this method is very useful for the            SET B
             products which need a wide appeal               a) it gives specific, information about a
   a)    1,2,3,4,5                                              product & influences the consumer’s
   b)    2,3,5                                                  decision of purchasing
   c)    1,2,4                                               b) it aims at creating
   d)    2,3,4,5                                             c) promotion is responsible for demand
Ans: c                                                          creation

196. Match the following:                                    A)    3-d,2-c,1-a
SET A                                                        B)    3-c,2-a,1-b
    1. Sales promotion                                       C)    3-c,2-b,1-a
    2. personal selling                                      D)    3-a,2-b,1-c
    3. advertising                                        Ans: d
    4. public relation
                                                          199. Match the following:
SET B                                                     SET A
                                                                      1. Advantage to manufacturer
    a) building good relations with the company’s                     2. Advantage to middleman
       various clients by obtaining favourable                        3. Advantage to consumers
    b) any paid form of non-personal                      SET B
       presentation & promotion of ideas, goods              a) it provides an opportunity to the
       or services by an identical sponsor                      consumers to participate in the
    c) short-term incentives to encourage the                   competitions
       purchase & sale of a product                          b) it helps in facing the competition
    d) oral presentation in conversation with one               successfully
       or more prospective purchasers for the                c) It increases the goodwill of the middlemen
       purpose of making sales
                                                             A)    1-a, 2-c, 3-b
   A)    1-d,2-c,3-b,4-a                                     B)    1-b, 2-c, 3-a
   B)    1-c,2-b,3-d,4-a                                     C)    1-a, 2-b, 3-c
   C)    1-a,2-d,3-b,4-c                                     D)    1-b, 2-a, 3-c
   D)    1-c,2-d,3-b,4-a                                  Ans: b
Ans: d
                                                          200. Identify the consumer’s promotion methods:
197. Identify the objectives of sales promotion:              1. distribution of free samples
    1. to introduce a new product into a market               2. discount coupons
    2. to attract new consumers and encourage                 3. free gift
        and to encourage them to buy more                     4. reduction in price
    3. to promote consumer to buy the product                 5. trade fairs & exhibition
    4. to face the competition successfully                   6. contest & competition
    5. to achieve pre determined marketing                    7. cheap bargain
        objectivities                                         8. demonstration
    6. to minimize the reduction in sales during
        the season                                              a) 1,2,3,4,7,8


   b) 1,2,4,5,6,7,8
   c) 1,3,4,5,6,7,8
   d) 1,2,3,4,5,6,7,8
Ans: d


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