Deck 8: Products, Marketing and Advertising

Question 1

Which of the following is not part of product differentiation?

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

Answer 1

2- for- 1 offers

Question 2

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

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

Answer 2

2- for- 1 offers

Question 3

Where a firm's product is seen to differ from rivals' products in quality terms, this is called

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

Answer 3

vertical product differentiation.

Question 4

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

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

Question 5

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

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

Question 6

A part of a market that has not been filled by an existing brand is called a

A) market niche.
B) market segment.
C) vertical opportunity.
D) horizontal opportunity.

Question 7

Using product differentiation to create market segmentation should make demand curves

A) more revenue- neutral.
B) exhibit increasing returns.
C) more elastic.
D) more inelastic.

Question 8

Ansoff's Growth Vector Matrix helps to answer which question?

A) What price should a firm charge to maximise sales revenue growth?
B) A and B
C) Should a firm promote an existing product, or develop a new product?
D) focus on gaining a bigger share of an existing market, or enter new markets?

Question 9

In Ansoff's Growth Vector Matrix, which of the following is not one of the four cells?

A) Market penetration
B) Market segmentation
C) development
D) Product development

Question 10

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

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

Question 11

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

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 12

When examining the marketing mix, place considerations would include

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

Question 13

When examining the marketing mix, adjusting the terms of payment for the customer would be considered as part of

A) pricing.
B) place.
C) product.
D) promotion.

Question 14

If you wanted to compare advertising intensity across industries, which of the following would be most appropriate?

A) Advertising to capital employed ratio
B) Advertising per company
C) Total advertising expenditure
D) Advertising to sales ratio

Question 15

Wedding venues are often heavily advertised because

A) they have a constantly changing customer base.
B) their supply is elastic.
C) there are only a small number of venues.
D) their demand is elastic.

Question 16

Advertising could lead to lower prices if

A) the advertising focuses on making demand as inelastic as possible.
B) economies of scale exceed the advertising cost.
C) advertising can never lower prices, since the advertising costs money.
D) the advertising shifts the demand curve to the left.

Question 17

Critics of advertising claim that it

A) leads to customers paying more for products.
B) wastes resources that could be put to an alternate use.
C) creates barriers to entry.
D) all of the above

Question 18

Advertising on television accounts for approximately _ of total advertising expenditure.

A) 22%
B) 20%
C) 26%
D) 32%

Question 19

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

Question 20

If a firm always charged lower prices, this would be a form of product differentiation.

Question 21

Market segmentation is an important strategy, which is suggested by

Question 22

If a firm's product is better quality than rival firms' products which sell at similar prices, this is called horizontal product differentiation.

Question 23

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

Question 24

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^TM and Weetabix^TM.

Question 25

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

Question 26

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

Question 27

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

Question 28

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

Question 29

Variations in advertising intensity by industry can be explained by raw material costs.

Question 30

Advertising must lead to higher market prices.

Question 31

When the economy grows, advertising spending (usually) grows faster.

Question 32

What are the two main types of product differentiation?

Question 33

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

Question 34

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

Question 35

Discuss the strengths of brands.

Question 36

What is the advertising/sales ratio? Why is it useful?

Question 37

Compare the choices contained within the

Question 38

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

Question 39

Summarise the arguments put forward in favour of and against advertising.

Question 40

How is advertising affected by the economy?