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A-Level Business (Edexcel) - Theme 1, Marketing

Total questions: 76

Worksheet time: 39mins

Name
Class
Date
1.
Which is true of niche markets?
a)
You sell undifferentiated products
b)
You sell differentiated products
2.
What is a dynamic market?
a)
One that only grows
b)
One with slow (or very minor) growth or retraction
c)
One that changes rapidly
d)
One with many businesses
3.
Who would likely have a higher market share in the chocolate market?
a)
Cadbury
b)
Hotel Chocolat
4.

A mass market is likely to sell a high volume of goods at a low profit margin?

a)

True

b)

False

5.
What is the brand shown?
a)
Dairy Milk
b)
Maltesers
c)
Oreo
d)
Galaxy Ripple
6.

Which of the following is not a characteristic of a mass market?

a)

Smaller quantity of products produced

b)

Large customer base

c)

High sales and profits.

d)

Customer needs and wants are less specific.

7.

Which of the following relates to qualitative market research ?

a)

large scale survey

b)

numerical data, statistics

c)

subjective opinions, attitudes

d)

closed questions

8.

Demand increases by 10% when price is cut by 25% therefore

a)

demand is price elastic

b)

demand is price inelastic

c)

PED = -2.5

d)

YED = -0.4

9.

Sales of inferior goods should increase during

a)

an economic boom

b)

a recession

c)

rapid economic growth

d)

a situation of rising incomes

10.

Factors affecting demand : Tastes (trends), income, c............., substitutes

a)

cash cow

b)

condiments

c)

complements

d)

competition

11.

Marketing mix = price, product, promotion and .............

a)

plaice

b)

place

c)

placement

d)

placemat

12.

The unit cost of production will be .................when mass produced

a)

higher

b)

more

c)

increased

d)

lower

13.

In February 2012, football star David Beckham launched a range of men’s underwear called Bodywear. This range is only being sold in H & M high street stores.


This business opportunity for H & M is best described as a form of

a)

test marketing

b)

trade-off

c)

market mapping

d)

market differentiation

14.

A firm has sales of £6m per year in a market worth £12m per year

a)

market share = 200%

b)

market share = 20%

c)

market share = 2%

d)

market share = 50%

15.

Which products below are substitute goods ?

a)
b)
c)
d)
16.

Which airline has the competitive advantage of a low price ?

a)
b)
c)
d)
17.

The USP of Dysons fan :

a)

it is blue

b)

it is electric

c)

it is bladeless

d)

it is round

18.

a)

image = Product orientation

b)

image = Market orientation

19.

Which of the below is an example of direct competition ?

a)
b)
c)
20.

Viral marketing is a social trend in

a)

price

b)

product

c)

promotion

d)

place

21.

is the formula for :

a)

market share

b)

percentage change

c)

market size

22.
a)

market share = 40%

b)

market share = 30%

c)

market share = 36%

d)

market share = 25%

23.

Customers can physically inspect the product

a)
b)
24.

Can sell to customers 24 hours a day, worldwide

a)
b)
25.

Which image shows an internal risk ?

a)
b)
c)
d)
26.
a)

market orientation

b)

product orientation

27.

Kitkat is under the

a)

yellow post-it

b)

pink post-it

28.

This definition: "a business reacts to what customers want. The decisions taken are based around information about customers' needs and wants" best describes.....

a)

segmentation

b)

A market orientated approach

c)

A product orientated approach

d)

Innovation

29.

EXAM TECHNIQUE

Which of the following connective words/phrases is most likely to support you in building a logical chain of argument (& earn ANALYSIS marks) in your exam answers.

a)

"on the other hand"

b)

"this could lead to"

c)

"however"

d)

"marketing"

30.

EXAM TECHNIQUE

Which of the following connective words/phrases is most likely to support you in showing counterbalance (& help you earn EVALUATION marks) in your exam answers.

a)

"on the other hand"

b)

"this could lead to"

c)

"resulting in"

d)

"because"

31.

Which of the following 3 are the most likely examples of the benefits to a business of ADDING VALUE to its products/service.

a)

charge a fair price, be competitive, support local

b)

motivate employees, innovative, less waste

c)

charge higher price, protection against competitors, focus on target market

d)

survival, environmental impact, brand awareness

32.

Uncertainty implies a situation where the future events are known.

a)

True

b)

False

33.

Risk can be measured and quantified.

a)

True

b)

False

34.

According to the law of demand, as price rises, what happens to quantity demanded?

a)

It goes up

b)

It goes down

c)

It stays the same

d)

No change

35.
Goods that are bought and used together are 
a)
complementary goods
b)
substitute goods
c)
income goods
d)
unrelated goods
36.
The diagram represents a
a)
increase in demand
b)
decrease in demand
c)
change in quantity demand
d)
none of the above
37.

Government gives car producers subsidies. What will the impact be?

a)
b)
c)
d)
38.

Which diagram shows the supply curve?

a)

A

b)

B

c)

C

d)

D

39.

A role of a broker is to:

a)

Provide manufacturers with access to consumers over a wide area and in convenient locations.

b)

Provide a simple sales option for manufacturers

c)

Help buyers to find the right business to buy from in complicated markets

d)

Make the goods eventually used by consumers

40.

A role of a manufacturer is to:

a)

Provide manufacturers with access to consumers over a wide area and in convenient locations.

b)

Provide a simple sales option for manufacturers

c)

Help buyers to find the right business to buy from in complicated markets

d)

Make the goods eventually used by consumers

41.

A role of a retailer is to:

a)

Provide manufacturers with access to consumers over a wide area and in convenient locations.

b)

Provide a simple sales option for manufacturers

c)

Help buyers to find the right business to buy from in complicated markets

d)

Make the goods eventually used by consumers

42.

A role of a wholesaler is to:

a)

Provide manufacturers with access to consumers over a wide area and in convenient locations.

b)

Provide a simple sales option for manufacturers

c)

Help buyers to find the right business to buy from in complicated markets

d)

Make the goods eventually used by consumers

43.

Reducing the stages of distribution will help a business to retain....

a)

workers

b)

customers

c)

control

d)

image rights

44.

Distribution refers to which element of the marketing mix?

a)

Promotion

b)

Product

c)

Price

d)

Place

45.
Suppose that elasticity of demand of socks is 0.7.  If the price of socks is reduced by 10%, how will sales be effected?
a)
sales will grow by more than 10%
b)
Sales will grow by 10%
c)
Sales will grow by less than 10%
d)
Sales will decrease by 10%
46.

Elasticity refers to

a)

how producers of goods and services react to price changes

b)

how consumers of goods and services react to price changes

c)

how far a supply of scarce goods can be stretched

d)

how often the price of a good or service changes when quantity demanded changes

47.

A supermarket sells essential products such as bread and milk. Are these products likely to be elastic or inelastic?

a)

Inelastic

b)

Elastic

48.

The problem child (question mark) has

a)

a high market share and high market growth

b)

a low market share and high market growth

c)

a low market share and low market growth

d)

a high market share and low market growth

49.

A Ferrari is likely to have a high price tag because the design mix is focused on which of the following (pick 2)?

a)

function

b)

aesthetics

c)

economic manufacture

50.
Which business has the slogan "I'm lovin' it"?
a)
Burger King
b)
McDonalds
c)
Subway
d)
KFC
51.
Which of the following best describes quality?
a)
The service provided to a customer before, during and after purchasing.
b)
Products being made to a high standard to meet customer needs.
c)
A high level of productivity.
52.

The external environment concerns features of the business environment that are:

a)

Within the control of a business

b)

Outside the control of a business

c)

Opportunities for a business

d)

Threats for a business

53.

Which of the following are examples of digital marketing? Select those that apply.

a)

Websites

b)

Billboards

c)

Social media

d)

Free delivery when you buy online

54.

Which of the following is not part of the design mix?

a)

Price

b)

Aesthetics

c)

Economic Manufacture

d)

Function

55.

Which part of the product life cycle is when sales are high but not increasing

a)

Introduction

b)

Growth

c)

Maturity

d)

Decline

56.

Kellogg's making well-known cereals into cereal bars is an example of

a)

an extension strategy

b)

an expansion strategy

c)

a development strategy

57.

A brand of luxury watches is likely to sponsor which kind of event?

a)

The new series of Love Island

b)

Premier League football coverage

c)

Cowes week sailing regatta

58.

What is Loss Leader pricing?

a)

A product is sold at production cost price

b)

A product is sold at less than cost price

c)

A product is sold to make a small profit

59.

What is an advantage of price skimming?

a)

Gains market share

b)

Covers costs and breaks even

c)

Allows an organisation to make the largest profit possible

60.

What is Promotional pricing?

a)

When a business offers different prices to different customers

b)

When a business reduces price to below production cost to clear stock

c)

When a business offers a short term special offer such as buy one get one free to gain interest and increase sales

61.

What is the selling price of an item which costs £5 to make and has a 50% mark up (profit added)?

a)

£7.50

b)

£5.00

c)

£10.00

62.

What is the aim of Loss Leader pricing strategy?

a)

To increase profit

b)

To make customers aware of entire product range

c)

To attract new and existing customers and increase sales of other items

63.

A UK exporter would benefit from :

a)

a stronger pound £

b)

a weaker pound £

64.

Which category in the Boston Matrix is for the least successful products?

a)

Cash Cows

b)

Stars

c)

Question Mark / Problem Child

d)

Dog

65.
Firms with a technically superior good may well engage in price skimming. This comment could apply to which stage of the Product Life Cycle?
a)
Introduction
b)
Growth
c)
Decline
d)
Maturity
66.
Costs are incurred e.g. building new production lines, promotion and distribution costs. Likely the product will still not be profitable. The length of this stage will vary.
a)
Maturity
b)
Growth
c)
Introduction
d)
Decline
67.

Businesses that sell to other business rather than customers use this type of marketing.

a)

Business to Consumer (B2C)

b)

Social Enterprise

c)

Business to Business (B2B)

68.

Harley Davidson Motor Cycles stresses the quality of their machines and the image Harley’s create in the minds of their target market. This demonstrates a marketing focus on

a)

Product

b)

Place

c)

Price

d)

Promotion

69.
Any form of communication used to inform, persuade, or remind; how potential customers will be told about the product
a)
Price
b)
Place
c)
Promotion
d)
Product
70.

B2B markets stands for

a)

Banks to Business markets

b)

Banks to Banks markets

c)

Business to Business markets

d)

Britain to Belgium markets

71.

Example of B2B markets may include

a)

A tyre manufacturer selling tyres to members of the public

b)

A tyre manufacturer selling tyres to a car manufacturer

c)

A bank providing a business with an overdraft

d)

A market stall selling fruit and veg to one of its customers

72.

B2C markets refer to

a)

Business to Catering markets

b)

Business to Call Centre markets

c)

Business to Consumer markets

d)

Business to Company markets

73.
A newspaper article is an example of Public Relations
a)
True
b)
False
74.
a)

Pink = cash cow

b)

Pink = dog

c)

Pink = problem child

d)

Pink = star

75.

Select the 2 advantages of branding

a)

A business can save money on marketing once the product becomes a household name.

b)

It means businesses don't have to make new items.

c)

The business can change its name if it wants to.

d)

Higher prices can be charged when consumers become loyal to the brand.

76.
Shelly will only buy Starbucks coffee is an example of
a)
brand position
b)
brand loyalty
c)
brand identity
d)
visual symbol