Product

1. Which of the following is NOT part of the product element in the marketing mix?

• A. Packaging

• B. Branding

• C. Price

• D. Features

Answer explanation

Correct answer: C. Price

Price is a separate element in the marketing mix. The ‘Product’ element includes everything related to the product itself – such as design, features, branding, and packaging.

2. What is a product line?

• A. A physical shelf where products are displayed

• B. All products a company sells to one market

• C. A group of related products sold by the same company

• D. Products made by different companies

Answer explanation

Correct answer: C. A group of related products sold by the same company

A product line is a collection of similar products offered by a company, often under the same brand (e.g., different flavours of soft drinks from the same brand).

3. What is meant by a 'brand'?

• A. The amount of money paid for a product

• B. A type of packaging used

• C. A name, symbol, or design that identifies a product

• D. A store where products are sold

Answer explanation

Correct answer: C. A name, symbol, or design that identifies a product

A brand helps consumers recognize and differentiate a product from competitors. It creates identity, trust, and loyalty.

4. Why is packaging important in the marketing mix?

• A. It keeps the product expensive

• B. It replaces the need for promotion

• C. It helps protect, promote, and attract customers

• D. It is not important at all

Answer explanation

Correct answer: C. It helps protect, promote, and attract customers

Packaging does more than just protect the product – it also attracts buyers and communicates information about the brand and product features.

5. What is a 'unique selling point' (USP)?

• A. A reason to lower the price

• B. A feature that makes the product stand out from competitors

• C. A type of product packaging

• D. A common feature in all products

Answer explanation

Correct answer: B. A feature that makes the product stand out from competitors.

A USP is what makes a product special and different. It gives customers a reason to choose that product over others.

6. Which stage is NOT part of the product life cycle?

• A. Introduction

• B. Expansion

• C. Growth

• D. Decline

Answer explanation

Correct answer: B. Expansion

The four main stages of the product life cycle are: Introduction, Growth, Maturity, and Decline. "Expansion" is not a standard stage.

7. Which of the following would be considered part of the ‘augmented product’?

• A. The product's colour
  
  

• B. Free delivery and installation

• C. The size of the product

• 
  D. The raw materials used

Answer explanation

Correct answer: B. Free delivery and installation

The ‘augmented product’ includes additional services or benefits like installation, warranties, or customer service that add extra value.

8. What is a 'product portfolio'?

• A. The packaging used for one product

• B. The number of employees in a company

• C. The range of products offered by a business

• D. The price list of all products

Answer explanation

Correct answer: C. The range of products offered by a business

A product portfolio is the full collection of products a company offers. It helps manage risk and reach different types of customers.

9. What happens during the ‘growth’ stage of the product life cycle?

• A. Sales are low and marketing costs are high
  

• B. The product is removed from the market

• C. Sales increase and the product becomes more popular

• D. The product is developed and tested

Answer explanation

Correct answer: C. Sales increase and the product becomes more popular

In the growth stage, customers start to accept the product, sales rise, and competitors may enter the market. Marketing focuses on differentiation.

10. A business adds a new feature to its phone model. This is an example of:

• A. Price skimming

• B. Product development

• C. Promotion

• D. Place strategy

Answer explanation

Correct answer: B. Product development

Product development involves improving or creating new features to meet customer needs and stay competitive in the market.