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Worksheets3.3 Revision
Total questions: 90
Worksheet time: 1hrs 19mins
Marketing objectives need to be SMART. What does this acronym stand for?
Specific, marginal, acceptable, respectable and timed
Specific, measurable, adequate, relevant and time bound
Specific, marketing, achievable, relevant and time bound
Specific, measurable, affordable, relevant and timed
Specific, measurable, achievable, relevant and time bound
A marketing objective might include sales. Sales can be measured in terms of what?
Sales value and sales units
Sales volume and sales performance
Sales value and sales volume
Sales volume and sales growth
What is the best definition of brand loyalty?
The positive association consumers attach to a particular product or brand.
The promotion of a particular product by means of advertising
The use of market research and advertising to promote and sell products or services
The combination of factors used to influence consumers to purchase a company's products
What is the difference between sales volume and sales value?
Sales volume relates to revenue, sales value relates to units sold
Sales volume relates to units sold, sales value relates to revenue
They are different ways of saying the same thing
Sales volume is a production target and sales value is a marketing target
Which of the following is the BEST definition of market share?
The total sales in one market
The percentage of total sales in a market held by one company or brand
The total sales of one firm and how they have increased
The percentage of total sales in a market held by one brand
Which of the following are INTERNAL influences on marketing objectives?
Corporate objectives
Financial position of the business
Development of a new innovative product
All of the above
Which of the following are EXTERNAL influences on marketing objectives?
Changes in fashion or taste
Changes in the economy
Financial constraints
All of the above
How do you calculate percentage change?
(New - Old) / Old)
((Old - New) / New)) x 100
((New - Old) / Old)) x 100
((New + Old) / Old)) x 100
Three key marketing objectives might include the following, except....
Increase Market Share
Increase Revenue
Build a Brand
Decrease Revenue
Increase a Brand Value
Most products pass through six stages, they are....
development, introduction, growth, maturity and decline.
construction, introduction, growth, maturity and decline.
development, construction, growth, maturity and decline.
development, introduction, growth, construction and decline.
During the Growth stage the product is being....
established and consumers are aware of it
established with a stable market share at this point
confident that such products ‘work’.
launched
researched and designed
During the Maturity & Saturation stage the product is being....
established with a stable market share at this point
established and consumers are aware of it
confident that such products ‘work’.
launched
researched and designed
During the Decline stage the product is being....
established with a stable market share at this point
lose its appeal to customers
established and consumers are aware of it
researched and designed
launched
What is a niche market?
A market in which businesses sell to a large customer group with similar needs.
A market in which businesses sell to a variety of customers.
A market in which businesses sell to a small customer group with specific needs.
A market in which businesses sell one product to many consumers.
What is a mass market?
When a business sells different products to all consumers and markets them in the same way.
When a business sells the same products to all consumers and markets them in a different way.
When a business sells different products to all consumers and markets them in a different way.
When a business sells the same products to all consumers and markets them in the same way.
Business aims are long term goals?
True
False
Advantages of niche marketing:
Small market do not allow lower average costs of production
Fewer risk
Create an image of cheap, low quality product
create a chance to sell at high prices
Limitation of market segmentation:
Design and produce goods that are specifically aimed the market segment
Research and development cost might be high
Differentiated marketing strategies can be focused on target market groups
Limiting the size of the market
Potential benefit to a business of adopting a mass marketing:
Higher profit margins are likely to be earned compared to a niche marketing strategy
Marketing costs per unit will be lower than with niche strategy
Sales will always be higher than with a niche strategy
Product will be adapted to set the needs of separate groups of consumers
What do you think the main objective of Amazon is?
Increase revenue
Increase the range of products on offer
Profit maximisation
Increase the number of customers
The 'M' in SMART objectives =
manageable
motivating
marginal
measurable
Functional objectives are usually set for :
individuals
the whole company
departments
senior management
The formula for price elasticity of demand (PED) =
% change in price divided by
% change in quantity demanded
% change in price multiplied by
% change in quantity demanded
% change in quantity demanded
divided by % change in price
% change in quantity demanded
multiplied by % change in price
A strong brand should :
increase price elasticity of demand
reduce price elasticity of demand
have no effect on price elasticity of demand
A product with low market growth and high market share =
Cash cow
Dog
Question mark
Star
In the Boston Matrix, a Problem child (question mark) =
High market growth and low market share
Low market growth and high market share
High market growth and high market share
Low market growth and low market share
The product life cycle stages in order :
Introduction, Development, Growth, Maturity, Decline
Development, Introduction, Maturity, Growth, Decline
Introduction, Growth, Development, Maturity, Decline
Development, Introduction, Growth, Maturity, Decline
A business collects information from a small group of customers in order to discover why they like a particular product. This is an example of which type of marketing research?
Qualitative, primary market research
Qualitative, secondary market research
Quantitative, primary market research
Quantitative, secondary market research
Price skimming involves setting a price that:
is most appropriate when demand is price elastic
allows a firm to target the mass market with a low price
is high in order to ensure a high profit margin
is suitable for a product in the decline stage of its product life cycle.
The 7 ‘P’s of the marketing mix include:
Process
Positioning
Productivity
Primary market research
The diagram indicates that between temperature and sales of Good ‘X’ there is a:
Strong positive correlation
Weak positive correlation
Strong negative correlation
Weak negative correlation
Product X has sales of £600,000 in a market with total sales of £5 million. The market share for Product X is:
15%
12%
1.2%
30%
Extrapolation can be defined as:
A statistical technique used to establish the strength of a
relationship between two sets of data
The introduction of an extra product to a certain
geographical area
Using the previous patterns of numerical data in order
to predict values in the future
Additional data not considered in the final sample size of research
Statement 1: ‘Penetration pricing is more likely to be used if demand is price inelastic.’
Statement 2: ‘Price skimming is more likely to be used if demand is price elastic.’
Read statements 1 and 2 and select the correct option from the following options:
Statement 1 is true. Statement 2 is true
Statement 1 is true. Statement 2 is false
Statement 1 is false. Statement 2 is true
Statement 1 is false. Statement 2 is false
Which one of the products in Table 1 is most likely to be a luxury product with many close substitutes?
Product A
Product B
Product C
Product D
One limitation of the Bostrix Mix is ... ?
A Cash Cow will not be profitable
It is easy to measure market share
Firms cannot invest in Dogs
High market share might not mean high profits
Which category in the Boston Matrix is for the least successful product?
Cash Cows
Stars
Decliners
Dogs
Products in which two categories of the Boston Matrix are most likely to generate positive cash flows?
Stars and Cash Cows
Cash Cows and Dogs
Dogs and Stars
Problem Children and Stars
Market segmentation is:
the process of dividing a market of potential customers into groups, or segments, based on different characteristics.
Classifying products into the customers who would most likely want to buy it
the market for tangerines, oranges and lemons
The particular market segment at which a business aims its products is known as the:
Target Market
Unique Selling Point
Main Market
Market Leader
Which of the following is an advantage of using market segmentation?
It allows a business to charge higher prices
It lets a business invest more in plant and machinery
It saves business money by avoiding the need for TV advertising
It allows a business to target its promotional strategy more effectively.
What is a disadvantage of using market segmentation?
You can't sell your products to everyone
It is rarely effective
It requires additional market research
Not everyone likes tangerines
Downloading and viewing instructional videos on how to use a product
Primary Research
Secondary Research
Product portfolio is....
The all the products in the market
The range of products one business has
A folder with pictures of products like an art portfiolo
The orange square is the :
cash cow
problem child (question mark)
The vertical axis shows the volume of (a) (one word)
Asking the first 10 students that you see from each year group in a school is an example of...
Simple random sampling
Opportunity sampling
Systematic sampling
Quota sampling
Define Income Elasticity of Demand
YED measures the degree of responsiveness of quantity demanded for a good to a change in consumer's income, ceteris paribus
YED measures the degree of responsiveness of demand for a good to a change in consumer's income, ceteris paribus
YED measures the degree of responsiveness of consumer's income to a change in quantity demanded for a good, ceteris paribus
YED measures the degree of responsiveness of consumer's income to a change in demand for a good, ceteris paribus
If the income elasticity of market demand is negative, most consumers view the good as:
a luxury good
having many imperfect substitutes.
an inferior good.
a normal good.
Which one is the correct formula for Income Elasticity of demand?
Percentage change in income / Percentage change in quantity demand for a good
Percentage change in quantity demand for a good / Percentage change in income
Percentage change in supplied for a good / Percentage change in income
Percentage change in quantity demand for a good / Percentage change in its price
What is price skimming?
An initially high price charged to customer which will reduce over time
An initially low price charged to customer which will increase over time
A steady price charged to customer regardless of product age
What is Promotional pricing?
When a business offers different prices to different customers
When a business reduces price to below production cost to clear stock
When a business offers a short term special offer such as buy one get one free to gain interest and increase sales
What is meant by Psychological pricing strategy?
Items are offered at an uneven number to appear cheaper encouraging sales (eg £9.99)
Items are sold using a special promotional offer which is brightly coloured and attracts attention
Items are sold at production cost price to attract customers into the store and increase purchases
What is an advantage of price skimming?
Gains market share
Covers costs and breaks even
Allows an organisation to make the largest profit possible
What are 3 things pricing may be based on?
Product, promotion, and service
Cost, Demand, and Competition
Cost, Demand, and Customers
Price, Promotion, Professionalism
_________ is one-way communication
Personal Selling
Advertising
Promoting
Texting
A coupon is an example of ____________
Personal Selling
Advertising
Public Relations
Sales Promotion
____________ is the most personal promotional tool
Personal Selling
Public Relations
Advertising
Sales Promotion
Billboards are a form of advertising
True
False
Kellogg's making well-known cereals into cereal bars is an example of
an extension strategy
an expansion strategy
a development strategy
A video made by a business to be passed around friends via social media is known as
sponsorship
social marketing
viral marketing
The way in which a product gets from a business to consumer is known as
A distribution channel
A TV channel
A promotional channel
A business that buys in bulk and sells on to other businesses is known as...
A retailer
An e-tailer
A wholesaler
The employees who interact with customers, require training, motivation and communication are:
Service
Physical Evidence
People
Processes
Tangible aspects of a service - For example the lobby at a hotel are:
Service
Physical Evidence
People
Processes
Ways in which the service is delivered - Fro example the payment systems you are able to use such as Wechat are:
Service
Physical Evidence
People
Processes
The extended marketing mix builds upon the Marketing mix which is:
Product, Price, Place and Processes
Product, Price, Promotion and Presentation
Packaging, People, Price and Pugilism
Price, Product, Promotion and Place
Staff aptitude tests may contibute to finding better employees for your business. This is _______
Physical Evidence
Promotion
People
Processes
At Hotels, sometimes you might be greeted at a luxurious and ornate door and helped with your bags by friendly staff. Which are evidenced of the extended marketing mix here:
People and Processes.
People, Physical Evidence and Processes.
People and Physical Evidence.
Processes and Physical Evidence.
Processes, Physical Evidence and Price
Which of the following best describes the role of an agent?
To act as an intermediary between the producer and consumers
To manufacture the goods
To distribute products to others for a commission without ever having ownership of the products
To sell to the end customer
Which is not one of the 7Ps of marketing?
Product
Perspective
Physical Evidence
People
A discount supermarket, such as Aldi, is most likely to place an emphasis upon which of the following elements of the marketing mix?
Product
Price
Place
Promotion
A brand of luxury watches is likely to sponsor which kind of event?
The new series of Love Island
Premier League football coverage
Cowes week sailing regatta
Nestle makes low-priced, everyday products that are widely available. It is most likely to focus its promotion efforts on
public relations
personal selling
viral marketing
advertising
sales promotion
Which stage of the product life cycle tends to be the most expensive for the organization?
Introduction
Growth
Maturity
Decline
A high end designer brand is likely to distribute its products
Via selected retailers like small boutiques
Via their own stores in exclusive parts of London and Paris
Via supermarkets
Via Amazon
Manufacturers of organic children's snacks are unlikely to charge a low price because
Ingredients are expensive
It would make customers think it was poor quality
They can't afford to charge low prices
They like to rip people off
