Question 1

What are the main areas and considerations of the marketing mix?

Accepted Answer

The marketing mix can be thought of as the four Ps.
• Product considerations: Quality, reliability, branding, packaging, after- sales service.
• Pricing considerations: Product's basic price in relation to those of competitors' products, opportunities for practising price discrimination, offering discounts to particular customers, adjusting the terms of payment for the product (e.g. credit).
• Place considerations: Product's distribution network, location of business's retail outlets, warehouse facilities, shipping facilities.
• Promotion considerations: Amount and type of advertising the business should use, promotion issues including selling techniques, special offers, trial discounts, other public relations 'gimmicks'.

Question 2

Which of the following is usually considered to be the least risky method of business expansion?

Accepted Answer

A)  Increasing market penetration 
B)  Diversification 
C)  Increase sales of existing products by entering new markets 
D)  Developing new products 
A)  Increasing market penetration 
B)  Diversification 
C)  Increase sales of existing products by entering new markets 
D)  Developing new products A

Question 3

Advertising expenditure is not subject to the cyclical fluctuations of the national economy.

Accepted Answer

A) True 
 B)False  FALSE

Question 4

Which of the following is not part of product differentiation?

Accepted Answer

A)  A customer care department 
B)  Vertical product differentiation 
C)  2- for- 1 offers 
D)  An advice helpline 
A)  A customer care department 
B)  Vertical product differentiation 
C)  2- for- 1 offers 
D)  An advice helpline

Question 5

What changes have favoured the development of supermarkets' own brands?

Accepted Answer

Up until the 1990s national and internat

Question 6

Explain how advertising and marketing is intended to shift a demand curve.

Accepted Answer

Advertising and marketing is intended to

Question 7

Advertising must lead to higher market prices.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not part of non- price competition?

Accepted Answer

A)  A customer care department 
B)  Vertical product differentiation 
C)  2- for- 1 offers 
D)  An advice helpline 
A)  A customer care department 
B)  Vertical product differentiation 
C)  2- for- 1 offers 
D)  An advice helpline

Question 9

Service characteristics relate to the support and back- up given to the customer after the product has been sold.

Accepted Answer

A) True 
 B)False

Question 10

Discuss the strengths of brands.

Accepted Answer

The more products are differentiated, co

Question 11

One of the reasons that supermarkets are eager to stock their own brands of cereals is that, although they are cheap, the profit margin is often higher than on well- known brands such as KellogsTM and WeetabixTM.

Accepted Answer

A) True 
 B)False

Question 12

The marketing mix includes many items. Firms should focus on the ones which

Accepted Answer

A)  are closely related to price. 
B)  have the highest demand elasticity. 
C)  have the lowest demand elasticity. 
D)  have worked well in the past. 
A)  are closely related to price. 
B)  have the highest demand elasticity. 
C)  have the lowest demand elasticity. 
D)  have worked well in the past.

Question 13

Non- price competition can involve advertising, packaging and product development.

Accepted Answer

A) True 
 B)False

Question 14

How is advertising affected by the economy?

Accepted Answer

Advertising is very sensitive to changes

Question 15

Basic price, credit terms and special promotions are all part of the 'pricing considerations' dimension when looking the marketing mix.

Accepted Answer

A) True 
 B)False

Question 16

If a car firm decided to produce a full range of cars, but only in yellow, this is called

Accepted Answer

A)  horizontal product differentiation. 
B)  vertical product differentiation. 
C)  niche marketing. 
D)  market segmentation. 
A)  horizontal product differentiation. 
B)  vertical product differentiation. 
C)  niche marketing. 
D)  market segmentation.

Question 17

When examining the marketing mix, place considerations would include

Accepted Answer

A)  shipping facilities. 
B)  inventory control. 
C)  storage facilities. 
D)  all of the above 
A)  shipping facilities. 
B)  inventory control. 
C)  storage facilities. 
D)  all of the above

Question 18

Advertisers would like to make the demand for their product less price elastic.

Accepted Answer

A) True 
 B)False

Question 19

A part of the market that has not been filled by an existing brand or business is called a market niche.

Accepted Answer

A) True 
 B)False

Question 20

If a car firm decided to produce a full range of cars, but each was more highly equipped than was usual in its price range, this is called

Accepted Answer

A)  vertical product differentiation. 
B)  horizontal product differentiation. 
C)  niche market. 
D)  market segmentation. 
A)  vertical product differentiation. 
B)  horizontal product differentiation. 
C)  niche market. 
D)  market segmentation.

Exam 8: Products, Marketing and Advertising

What are the main areas and considerations of the marketing mix?

Which of the following is usually considered to be the least risky method of business expansion?

Advertising expenditure is not subject to the cyclical fluctuations of the national economy.

Which of the following is not part of product differentiation?

What changes have favoured the development of supermarkets' own brands?

Explain how advertising and marketing is intended to shift a demand curve.

Advertising must lead to higher market prices.

Which of the following is not part of non- price competition?

Service characteristics relate to the support and back- up given to the customer after the product has been sold.

Discuss the strengths of brands.

One of the reasons that supermarkets are eager to stock their own brands of cereals is that, although they are cheap, the profit margin is often higher than on well- known brands such as KellogsTM and WeetabixTM.

The marketing mix includes many items. Firms should focus on the ones which

Non- price competition can involve advertising, packaging and product development.

How is advertising affected by the economy?

Basic price, credit terms and special promotions are all part of the 'pricing considerations' dimension when looking the marketing mix.

If a car firm decided to produce a full range of cars, but only in yellow, this is called

When examining the marketing mix, place considerations would include

Advertisers would like to make the demand for their product less price elastic.

A part of the market that has not been filled by an existing brand or business is called a market niche.

If a car firm decided to produce a full range of cars, but each was more highly equipped than was usual in its price range, this is called

The Business Environment and Business Economics

Economics and the World of Business

Business Organisations

The Working of Competitive Markets

Business in a Market Environment

Demand and the Consumer

Demand and the Firm

Costs of Production

Revenue and Profit

Profit Maximisation Under Perfect Competition and Monopoly

Profit Maximisation Under Imperfect Competition

An Introduction to Business Strategy

Alternative Theories of the Firm

Growth Strategy

The Small-Firm Sector

Pricing Strategy

Labour Markets, Wages and Industrial Relations

Investment and the Employment of Capital

Reasons for Government Intervention in the Market

Government and the Firm

Government and the Market

Globalisation and Multinational Business

International Trade

Trading Blocs

The Macroeconomic Environment of Business

The Balance of Payments and Exchange Rates

Banking, Money and Interest Rates

Business Activity, Employment and Inflation

Demand-Side Policy

Supply-Side Policy

International Economic Policy

Filters

One of the reasons that supermarkets are eager to stock their own brands of cereals is that, although they are cheap, the profit margin is often higher than on well- known brands such as Kellogs^TMand Weetabix^TM.