Chapter 16: Marketing strategy

A business decides to promote a new range of luxury clothing by advertising in expensive

women’s magazines. Which one of the following would be the best mix of other decisions

for the firm to take?

1) High prices, mail order, cheap packaging

2) Low prices, quality packaging, high class retail shops

3) High prices, quality packaging, high class retail shops

4) Low prices, quality packaging, sold in supermarkets

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An entrepreneur plans to start-up a convenience store selling sweets, food and

newspapers in an area of low income households. The most successful marketing mix

combination is likely to be:

1) price skimming; TV advertising; high street shop; wide range of products

2) competitive pricing; postal leaflets in area; easily accessible small shop; basic

products

3) competitive pricing; postal leaflets in area; easily accessible small shop; quality

products

4) cost plus pricing; national newspaper advert; easily accessible small shop; basic

products

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The 4 Ps of the marketing mix are:

1) price, product, people, place

2) product, promotion, profit, place

3) promotion, place, price, product

4) place, profit, price, promotion

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Legal controls over marketing activities include all of the following except:

1) advertising claims should be honest

2) prices should be very low

3) weights should be accurate

4) products must meet safety standards

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Consumers benefit from legal controls over marketing activities in which one of the

following ways:

1) products they buy will never fail

2) all adverts will contain large amounts of information

3) prices will be lower than in other countries

4) risk of accidents from dangerous products is reduced

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Which one of the following is the most likely reason for a business selling products in

foreign markets for the first time?

1) The domestic market is expanding quickly

2) The business is operating at 100% of its total production capacity

3) Foreign economies are in recession

4) The domestic market is declining

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Which one of the following is the most likely benefit to a business from selling products in

a foreign market which has high incomes but low levels of competition?

1) A high profit margin will be earned

2) No advertising will be needed

3) No changes to the products will have to be made

4) It will definitely gain a high market share

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A business makes women’s clothes. It plans to sell abroad for the first time. Which one of

the following is a likely disadvantage of this decision?

1) It will have to sell at lower prices than in the domestic market

2) It will have to consider changing the style of clothes

3) It will have to buy many shops to enter the market

4) It will have to advertise on TV in this country

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Cultural differences between markets in different countries include all of the following

except:

1) ethnic (race) differences and impact on food tastes

2) religious differences towards eating meat

3) language differences and understanding advertising material

4) income differences affecting consumer spending habits

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One advantage of forming a joint venture with a business in another country when

entering this market is:

1) the local business will have useful market knowledge

2) the local business will have full control of the venture

3) it removes all risks from entering foreign markets

4) the products will not need to be changed to sell in this market

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