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4.5 Marketing Mix, IB Business

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

A business wishes to sell consumer goods in a large country. Which of the following methods of distribution is most suitable? 

a)

Wholesaler

b)

Mail order

c)

Agent

d)

Direct retail

2.

A farmer sells his produce directly to consumers. Which of the following is not an advantage of this method of distribution? 

a)

The produce will get to the consumers quickly.

b)

Profits will be higher because there is no intermediate mark-up charge.

c)

The storage costs will have to be paid by the farmer.

d)

It will be possible to get feedback directly from the customers.

Report feedback or error

3.

The Copper Clothing Company is a privately owned clothes manufacturer. It uses penetration pricing for its products. Which of the following is not a reason for setting prices low? 

a)

To increase market share

b)

To compete effectively

c)

To encourage word of mouth recommendations for the products

d)

To demonstrate a unique image

4.

What pricing strategy sets extremely low prices with the objective of forcing competitors out of the market? 

a)

Cost Plus (Markup)

b)

Predatory

c)

Penetration

d)

Dynamic

5.

The cost of producing one unit of output is $40. A company uses a mark-up of 50% on top of the production cost. What will be the selling price of this product? 

a)

$50

b)

$60

c)

$70

d)

$80

6.

Which stage of the product life cycle is characterised by high sales, intense competition and marketers making an attempt to hold the position of products in the market?

a)

Growth

b)

Maturity

c)

Decline

d)

Introduction

7.

An organisation collects a sample of 100 workers. In the sample, 75% are full-time employees and 25% are part-time employees. These proportions are the same in the population of the organisation as a whole. Which method of sampling is the organisation using? 

a)

Snowballing

b)

Quota

c)

Random

d)

Cluster

8.

A gym chain wishes to add new machines and different forms of workout at one of its locations. Which primary research method will be most suitable to collect information about its customers’ preferences? 

a)

Survey

b)

Interview

c)

Observation

d)

Focus Group

9.

Which would be the most appropriate size of a typical focus group? 

a)

1-3 people

b)

4-7 people

c)

Over 15 people

d)

It depends on what you are researching

Report feedback or error

10.

Dividing the market on the basis of values, interests and lifestyle choices is which type of segmentation?

a)

Geographic

b)

Demographic

c)

Psychographic

d)

Gender