Solved paper MGT301 Principles of Marketing Fall 2009

FINALTERM EXAMINATION
Fall 2009
MGT301- Principles of Marketing

Time: 120 min
Marks: 92

Question No: 1 ( Marks: 1 ) - Please choose one
In a Michael Porter Model, which one of the following options is a major tool in the identification of ways to create value in an organization?
► Chain model
► The BCG model
► Five forces model
► Value chain model

Question No: 2 ( Marks: 1 ) - Please choose one
Which one the following option is related with this statement “Rapid imitation of leader or challenger with moderate country market coverage and emphasis on price sensitive markets. The result is overall moderate share with high shares in selected country markets.”
► Global leader strategy
► Global challenger strategy
► Global follower strategy
► Global niche strategy

Question No: 3 ( Marks: 1 ) - Please choose one
Which one of the following is a key to build lasting relationships with consumers?

► Price of the product
► Need recognition
► Customer satisfaction
► Quality of product

Question No: 4 ( Marks: 1 ) - Please choose one
The strategic marketing process is how an organization allocates its marketing mix resources to reach its:

► Stated business idea
► Target market
► Competition
► Area of expertise

Question No: 5 ( Marks: 1 ) - Please choose one
Which one of the following is NOT a trend in the natural environment?
► The increased cost of energy
► A shortage of raw material
► Government intervention
► Changing consumer spending pattern

Question No: 6 ( Marks: 1 ) - Please choose one
Marketing information from which of the following databases can be accessed more quickly and cheaply?
► External
► Internal & External
► Internal
► Representatives

Question No: 7 ( Marks: 1 ) - Please choose one
It is important to note that research objectives must be translated into which of the following?

► Marketing goals
► Information needs
► Dollar amounts
► Results that justify the means

Question No: 8 ( Marks: 1 ) - Please choose one
If ABC Ltd knows that its market share in Pakistan has dropped 13 percent in the first quarter of the year but does not know what might have contributed to this decline, it is in which stage of the marketing research process?

► Hypothesis development
► Symptom identification
► Problem identification
► Data interpretation

Question No: 9 ( Marks: 1 ) - Please choose one
Groups of people with shared value systems based on common life experiences and situations in a culture represent which one of the following option?

► Motives
► Attitudes
► Cognitive dissonances
► Subcultures

Question No: 10 ( Marks: 1 ) - Please choose one
Society’s relatively permanent and ordered divisions whose members share similar values, interests and behaviors reflect which one of the following option?

► Social classes
► Habitual buyers
► Charismatic leaders
► Opinion leaders

Question No: 11 ( Marks: 1 ) - Please choose one
In a reference group, people having special skills, knowledge, personality, or other characteristics, exert influence on others. Which one of the following option refers to these people?

► Opinion leaders
► Habitual buyers
► Charismatic personalities
► Wild ducks

Question No: 12 ( Marks: 1 ) - Please choose one
Income segmentation is used to target which of the following groups?
► Affluent
► Middle class
► Lower income class
► All of the given options

Question No: 13 ( Marks: 1 ) - Please choose one
Customer service is another element of product strategy. The first step is to survey customers periodically to assess the value of current services and to obtain ideas for new ones. From this careful monitoring, marketer has learned that buyers are very upset by repairs that are not done correctly the first time. What is the name of these types of services?
► Brand equity services
► Product support services
► Social marketing services
► Unsought product services

Question No: 14 ( Marks: 1 ) - Please choose one
Which one of the following statements BEST describes the concept of Price?

► The value that is exchanged for products in a marketing transaction
► Always money paid in a marketing transaction
► More important to buyers than sellers
► Usually the most inflexible marketing mix decision variable

Question No: 15 ( Marks: 1 ) - Please choose one
When establishing prices, a marketer's first step is to:

► Develop pricing objectives
► Select a pricing policies
► Evaluate competitors' prices
► Determine a pricing methods

Question No: 16 ( Marks: 1 ) - Please choose one
Which one of the following is the requirement for setting pricing objectives?

► The objectives should be short-term oriented
► There should be only one pricing objective
► The cost structure should be identified
► The objectives should be explicitly stated

Question No: 17 ( Marks: 1 ) - Please choose one
“Rs10 per unit for less than 100 units, Rs9 per unit for 100 or more units” reflects which one of the following discounts?

► Quantity
► Cash
► Seasonal
► Trade

Question No: 18 ( Marks: 1 ) - Please choose one
When Mr. A is using a channel with only one intermediary, that intermediary is classified as which of the following?

► Retailer
► Wholesaler
► Broker
► Producer

Question No: 19 ( Marks: 1 ) - Please choose one
Nike maintains a good deal of control over how its products are promoted, displayed, and sold. Because of this control, Nike would be appropriately described as which of the following?

► Intermediary
► Leader
► Allocator
► Terminator

Question No: 20 ( Marks: 1 ) - Please choose one
Because Coke is such a popular product and the company is so powerful, Coca-Cola is in a position to exert considerable control over channel structures and the way Coke is marketed. This example illustrates channel __________ in the distribution channel.

► Conflict
► Leadership
► Dominance
► Negotiation

Question No: 21 ( Marks: 1 ) - Please choose one
A cash-and-carry wholesaler would be expected to:

► Provide transportation
► Handle high turnover products
► Carry a wide variety of products
► Provide a wide range of services

Question No: 22 ( Marks: 1 ) - Please choose one
Coupon is an example of which one of the following promotional tools?

► Personal selling
► Sales promotion
► Advertising
► Public relations

Question No: 23 ( Marks: 1 ) - Please choose one
“Sharing of meaning” reflects which one of the following concepts?

► Noise
► Interference
► Communication
► Information

Question No: 24 ( Marks: 1 ) - Please choose one
Which of the following advertising is used heavily for creating a primary demand when introducing a new product in the market?
► Persuasive advertising
► Informative advertising
► Comparative advertising
► Institutional advertising

Question No: 25 ( Marks: 1 ) - Please choose one
In which of the following advertising a company directly or indirectly compares its brand with one or more other brands?
► Informative advertising
► Institutional advertising
► Reminder advertising
► Comparative advertising

Question No: 26 ( Marks: 1 ) - Please choose one
The advertiser has to choose the pattern of the ads. Which of the following options refer to the “scheduling ads evenly within a given period” and “scheduling ads unevenly over a given time period” respectively?
► Continuity; Hard hitting
► Continuity; Pulsing
► Pulsing; Hard hitting
► Sequencing; Routing

Question No: 27 ( Marks: 1 ) - Please choose one
Personal selling can be defined as which of the following communication?

► People communication
► Direct communication
► Interpersonal communication
► Local communication

Question No: 28 ( Marks: 1 ) - Please choose one
The principles of personal selling described as which one of the following orientation?

► Service orientation
► Customer orientation
► Transaction orientation
► Relationship orientation

Question No: 29 ( Marks: 1 ) - Please choose one
There are three typical types of sales force structures. Which one is often supported by many levels of sales management positions in specific geographical areas?

► Territorial
► Customer
► Complex systems
► Matrix

Question No: 30 ( Marks: 1 ) - Please choose one
Which one of the following wholesaler provides a convenient and effective method of selling small items to customers in remote areas that other wholesalers might find unprofitable to serve?
► Mail-order wholesalers
► Specialty-line wholesalers
► Cash-and-carry wholesalers
► Truck wholesalers

Question No: 31 ( Marks: 1 ) - Please choose one
Which of the following firm aggressively tries to expand its market share by attacking the leader, other runner-up firms, or smaller firms in the industry?
► Market leader
► Market challenger
► Market follower
► Market niche

Question No: 32 ( Marks: 1 ) - Please choose one
Which one of the following is NOT a part of basic competitive strategies?
► Overall cost-leadership
► Differentiation
► Sales force reinforcement
► Focus

Question No: 33 ( Marks: 1 ) - Please choose one
Which of the following option is NOT related with traditional buyer’s rights?
► Right not to buy a product that is offered for sale
► Right to expect the product to be safe
► Right to expect the product to perform as claimed
► Right to ask money back even not offered by the seller

Question No: 34 ( Marks: 1 ) - Please choose one
Which of the following option is NOT related with “Key Principles for Public policy towards Marketing”?
► Consumer and producer freedom
► Curbing potential harm
► Economic recession
► Consumer education

Question No: 35 ( Marks: 1 ) - Please choose one
If the competitor’s price cut harm the company’s sales and profit then what should your company do:
► Hold the current price
► Increase the price
► Decrease the price
► Either increase or decrease the price

Question No: 36 ( Marks: 1 ) - Please choose one
When a company cannot supply all its customers’ needs; what would be an effect on price?
► Price will increase
► Price will remain same
► Price will decrease
► Price will decrease up to a certain limit

Question No: 37 ( Marks: 1 ) - Please choose one
What does this statement show “Trade of value between two parties”?
► Competition
► Transaction
► Exchange
► Need

Question No: 38 ( Marks: 1 ) - Please choose one
Fast-food restaurants offer tasty and convenient food at affordable prices; they contribute to fatness that harms consumer health. Which one of the following concepts is NOT being followed by this company?
► Product concept
► Production concept
► Societal marketing concept
► Marketing concept

Question No: 39 ( Marks: 1 ) - Please choose one
Identify the first step in a strategic planning process.
► Define the company's mission
► Develop the business portfolio
► Plan marketing strategies
► Set objectives and goals

Question No: 40 ( Marks: 1 ) - Please choose one
One of the contents of formal marketing plan that includes a market description, a product review, a review of competition and a review of distribution is called:
► Threats and opportunity analysis
► Objectives and issues
► Marketing strategy
► Current marketing situation

Question No: 41 ( Marks: 1 ) - Please choose one
Which one of the following are the MOST useful source of speedier and more comprehensive information?

► Suppliers
► Key customers
► Company reports
► Sales force

Question No: 42 ( Marks: 1 ) - Please choose one
Which one of the following steps in the marketing research process deals in "defining the problems and research objectives, implementing the research plan, and interpreting and reporting the findings"?

► Developing the research budget
► Choosing the research agency
► Choosing the research method
► Developing the research plan

Question No: 43 ( Marks: 1 ) - Please choose one
Identify the name of a vast public web of computer networks that connect users of all types all around the world to each other?
► Extranet
► Internet
► LAN
► Intranet

Question No: 44 ( Marks: 1 ) - Please choose one
Mr. Ali, a sales person from Philips, develops a list of potential customers and evaluates them on the basis of their ability, willingness, and authority to purchase copy machines. What is the name of this process?
► Customer search
► Sales preparation
► Audience identification
► Prospecting

Question No: 45 ( Marks: 1 ) - Please choose one
All of the following are the examples of public relations tools EXCEPT:
► Speeches
► Feature articles
► Special events
► News stories

Question No: 46 ( Marks: 1 ) - Please choose one
Nestle Foods, ran an ad promoting its new Nestle fruit juice in Ladies' Home Journal magazine. The ad contained a coupon for $1.00 off the purchase price of two half-gallon containers of the drink. The advertising agency that created the Nestlé’s ad for the magazine:
► Was engaged in feedback barrier removal
► Was engaged in encoding the ad
► Was responsible for decoding the ad
► Acted as the communication channel

Question No: 47 ( Marks: 1 ) - Please choose one
Nestle Foods, ran an ad promoting its new Nestlé’s fruit juice cocktails in Ladies' Home Journal magazine. The ad contained a coupon for $1.00 off the purchase price of two half-gallon containers of the drink. The magazine:
► Served as the channel for communication
► Was the decoding device
► Provided feedback
► Was the encoding device

Question No: 48 ( Marks: 1 ) - Please choose one
Fixed cost is also known as which of the following?

► Sunk cost
► Variable cost
► Overhead cost
► Advertising cost

Question No: 49 ( Marks: 1 ) - Please choose one
Like many consumer products manufacturers, Haier Electronics gives its resellers discounts to encourage them to carry and promote its products. When doing so, Haier Electronics uses which of the following strategy?
► Intensity
► Push
► Flexible
► Pull

Question No: 50 ( Marks: 1 ) - Please choose one
All marketing activities that attempt to stimulate quick buyer action or immediate sales of a product are known as:
► Sponsorship
► Advertising
► Personal selling
► Sales promotion

Question No: 51 ( Marks: 1 ) - Please choose one
A company has advantages of selective audience with no ad competition and personalization, to which type of media it will apply?

► Radio
► Newspapers
► Internet
► Direct mail

Question No: 52 ( Marks: 1 ) - Please choose one
In a textile firm if the director of marketing is concerned with the buyer-readiness stages of his customers, the best promotional tool for him to use would be:
► Public relations and publicity
► Sales promotion
► Advertising
► Personal selling

Question No: 53 ( Marks: 1 ) - Please choose one
Which one of the following marketing activity stimulate consumer purchasing such as coupons, contests, free sample and trade shows?
► Sales promotion
► Publicity
► Personal selling
► Public relation

Question No: 54 ( Marks: 1 ) - Please choose one
To increase the market share a company organizes Point of Purchase (POP) Displays. It is an example of:
► Trade promotion
► Consumer promotion
► Sales promotion
► Brand promotion

Question No: 55 ( Marks: 1 ) - Please choose one
All of the following positive effects can be achieved by adopting a proper market education strategy in advertising, EXCEPT:
► It helps to minimize sales resistance
► It helps to reduce the cost of advertising
► It makes advertising more effective
► It restricts sales force to achieve adequate distribution

Question No: 56 ( Marks: 1 ) - Please choose one
Alertness is the advantage of which of the following?
► Competitor-centered company
► Customer-centered company
► Market-centered companies
► None of the given options

Question No: 57 ( Marks: 1 ) - Please choose one
Which of the following is an international trade agreement that has helped to reduce worldwide tariffs?
► General Agreement on Tariffs and Trade (GATT)
► World Trade Organization (WTO)
► North American Free-Trade Agreement (NAFTA)
► Association of Southeast Asian Nations (ASEAN)

Question No: 58 ( Marks: 1 ) - Please choose one
Which of the following has a greater amount of risk, control and profit potential?
► Importing
► Joint Venturing
► Direct Investment
► Exporting

Question No: 59 ( Marks: 1 ) - Please choose one
Which of the following allowances are payments to wholesalers or retailers to stock unproven new products?
► Stocking allowance
► Trade-in allowance
► Push money allowance
► Promotion allowance

Question No: 60 ( Marks: 1 ) - Please choose one
Internet began to expand with the World Wide Web in which of the following year?
► 1991
► 1992
► 1993
► 1994

Question No: 61 ( Marks: 1 ) - Please choose one
Which of the following is a philosophy of customer satisfaction and mutual gain?
► The marketing concept
► The production concept
► The selling concept
► Societal marketing concept

Question No: 62 ( Marks: 1 ) - Please choose one
Which one of the following is NOT the primary criticism leveled at the marketing function by consumers, consumer advocates, and government agencies?
► Deceptive practices
► High-pressure selling
► Shoddy or unsafe products
► Too much political power

Question No: 63 ( Marks: 1 ) - Please choose one
Greedy intermediaries who mark up prices beyond the value of their services, comes under which of the following factors of harming consumers through high prices?

► High cost of distribution
► High advertising and promotion cost
► Excessive markup
► High pressure selling

Question No: 64 ( Marks: 1 ) - Please choose one
If your competitor has cut the price of its product and it is affecting the sale of your product and profit margin of your company, then you might decide to take some action. Which of the following action will your company take in this situation?
► Close your business
► Raise perceived quality
► With draw your product
► Hold the same price

Question No: 65 ( Marks: 3 )
What is consumer black box? How many parts are in consumer black box?

Consumer black box is the behavior of the buyer. Consumer purchases many things in his routine life. How consumer responds to various marketing efforts. Who, where, why are the questions which are to be addressed in consumer black box. There are two parts of black box.
1. The buyer’s characteristics influence how he perceive and react to stimuli.
2. The buyer’s decision process.



Question No: 66 ( Marks: 5 )
One of the disadvantages of personal selling is the high cost in maintaining this type of promotional effort. Discuss it by giving your views regard cost.

The disadvantages of personal selling are:
• It is very expensive to deal with each contact
• Labor intensive
• Lots of calls may required to generate a single sale
• Attention of high caliber people is difficult to attain.
• It is costly to maintain and develop a sales force.

Question No: 67 ( Marks: 10 )
While deciding on the advertising budget a marketer should have to consider some specific factors. List down any five factors which affect the budget decisions of marketer.
• For new products huge advertisement is required and it also needs a considerable budget.
• Competition and clutter: As there are also lots of competitors and there clutters.
• Market Share: for high quality brands more advertisement is needed.
• Product Differentiation: when there are more than one products similar to each other, heavy advertisement is required to differentiate the product.

Question No: 68 ( Marks: 10 )
Why companies are focusing more on logistics management? Give reasons.

Companies are required to be good in store, handling and move their goods so that they are available to customers at right place and the right time with full satisfaction. It has major impact on customer satisfaction and company costs. Modern logistics involves planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit.
It includes production of the product and delivery of the product to the customer ware house or outlet. Logistics Management not only address the problems of outbound distribution but also inbound distribution. It also involves in supply chain management and value added flows from producer to supplier.
There must be some goals or objectives for logistics management like providing target level of customer satisfaction with least cost. Logistics management is the coordination of producer, purchasing agent market, marketers and customers. These activities include
forecasting, information systems, purchasing, order processing, inventory, warehousing, and transportation planning.

solved Final Term Paper of MGT301

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