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Marketing Strategy MCQs
The possible approach for selling a product are Sales orientation, Production orientation, Product orientation and marketing orientation. Here on MCQs.club we have designed useful and easy Multiple-Choice Questions (MCQs) on Marketing and Business Strategy that fully covers the marketing concept, inbound marketing, environment, market segmentation, plan, the types of marketing i.e. guerilla, social, viral etc. and outbound marketing. Moreover, these MCQs also include topics likes fundamentals and micro and macro environment in marketing. Our MCQs are useful for Accountancy, Business management and competitive exams.
- Market is defined as – The management process responsible for identifying, anticipating and satisfying customer requirements profitably.
- True
- False
- Identify the possible approach for selling a product:
- Sales orientation and Production orientation
- Product orientation and marketing orientation
- Both A&B
- All of the above
- Which of the following statement is correct with regard to sales orientation:
- The major task of management is to use persuasive communication and aggressive promotional policies to entice the customer.
- The sales team and the sales manager is the focal point of the business.
- The belief is that a good sales team can sell anything to anybody. The organization sets about increasing demand by investing heavily in sales techniques such as personal selling, advertising and sales promotion to emphasize product differentiation and branding.
- All of the above
- Drawbacks of the sales orientation include:
- There is no systematic attempt to identify customer needs, or to create products that satisfy them.
- The organization has to rely on intensive sales techniques
- Both A&B
- None
- Which of the following statement is correct regarding production orientation?
- The business focuses on making as many units as possible
- High volume production results in economies if scale and therefore profitability is improved due to a lower unit cost.
- The approach works when the market is growing more rapidly than output.
- All of the above
- Drawbacks of the production orientation include:
- If production exceeds demand, too much may be produced and left unsold
- The approach does not take account of customer preferences and the low cost may be associated with lower quality.
- Both A&B
- None
- The best approach that an organization can adopt is a marketing orientation. The benefit of the marketing orientation includes – where an organization is able to meet its customer’s needs efficiently and effectively, its ability to gain an advantage over its competitors will be increased.
- True
- False
- Strategic marketing –:
- is tied in with corporate strategy, by identifying which products and markets the organisation wishes to operate in.
- is focused more on the short term and on particular elements of the marketing mix.
- Both A&B
- None
- Tactical marketing –:
- is tied in with corporate strategy, by identifying which products and markets the organisation wishes to operate in.
- is focused more on the short term and on particular elements of the marketing mix.
- Both A&B
- None
- Marketing concept –:
- A philosophy of business, permeating the whole organisation, that holds that the key to organisational success is meeting customers’ needs more effectively and more closely than competitors. = A BELIEF SYSTEM
- An approach to business that centres its activities on satisfying the needs and wants of its customers. = ACTUAL PRACTICES
- Both A&B
- None
- Marketing orientation –:
- A philosophy of business, permeating the whole organisation, that holds that the key to organisational success is meeting customers’ needs more effectively and more closely than competitors. = A BELIEF SYSTEM
- An approach to business that centres its activities on satisfying the needs and wants of its customers. = ACTUAL PRACTICES
- Both A&B
- None
- Identify dimensions of marketing:
- It is a culture. The marketing concept is to focus on consumer needs.
- It involves strategy. A company must select the markets it intends to sell to and the products or services it will sell. These selections are strategic decisions.
- It involves tactics. Marketing tactics can be considered as the 7Ps of the marketing mix.
- All of the above
- Organizational performance will be depended on the successful management of the opportunities, challenges and risks presented by changes in the external environment. A technique known as PESTEL analysis use for analyzing the general environment.
- True
- False
- The PESTEL analysis divides the business environment into:
- Political, economic systems
- Social, technical systems
- Ecological factors and Legal systems
- All of the above
- Technical – this is an area in which changes takes place very rapidly and the organization needs to be constantly aware of what is going on. Identify what factors Technological changes can influence:
- New technology can result in the production of new products.
- New technology can allow existing products to be more cheaply and hence prices can be lowered.
- Technological developments have allowed new methods of distributing goods and services e.g. via internet.
- All of the above
- Identify the levels of marketing environment.
- Macro
- Micro
- Internal
- All of the above
- Macro-enviroment –:
- includes all factors that can influence the organisation, such as the PESTEL factors explained in the next section. It is generally out of the organisation’s control.
- is comprised of factors specifically related to the organisation, such as the organisation’s customers and suppliers. The organisation can have some influence over these factors.
- refers to factors within the organisation, such as its assets, employees and finance. These factors are able to be controlled by the organisation.
- None
- Micro-enviroment –:
- includes all factors that can influence the organisation, such as the PESTEL factors explained in the next section. The macro-environment is generally out of the organisation’s control.
- is comprised of factors specifically related to the organisation, such as the organisation’s customers and suppliers. The organisation can have some influence over these factors.
- refers to factors within the organisation, such as its assets, employees and finance. These factors are able to be controlled by the organisation.
- None
- Internal environment –:
- includes all factors that can influence the organisation, such as the PESTEL factors explained in the next section. The macro-environment is generally out of the organisation’s control.
- is comprised of factors specifically related to the organisation, such as the organisation’s customers and suppliers. The organisation can have some influence over these factors.
- refers to factors within the organisation, such as its assets, employees and finance. These factors are able to be controlled by the organisation.
- None
- How the SWOT analysis can be used.
- The organisation can develop resource-based strategies which enable the organisation to extend the use of its strengths. This is common in retailing, for example, as supermarket chains extend their own brands from food to other areas.
- The business can develop positioning-based strategies. In other words, identifying what opportunities are available and what the firm has to do exploit them.
- Either A or B
- None
- A company may currently have a sales/production/product orientation and may want to adopt a marketing orientation. Identify the marketing action plan to implement this.
- Situation analysis – such are SWOT analysis and PESTEL analysis.
- Set its corporate objectives
- Set its marketing objectives
- Devise an appropriate marketing strategy
- Plan the marketing mix
- Implementation and control
- All of the above
- (I) (IV) and (VI) only
- (IV) and (VI) only
- None
- While devising an appropriate marketing strategy, for implementing a marketing orientation, an organization should consider certain factors. Identify such factors.
- Segmentation – the market should be segmented, e.g. by age, social class or income.
- Targeting – the most attractive segments in terms of profitability and growth should be targeted using an appropriate marketing mix.
- Positioning – an appropriate positioning strategy, e.g. differentiation or cost leadership should be chosen for each market segment.
- Marketing mix – the organization should use the marketing mix to determine the correct strategy for product, price, place and promotion.
- All of the above
- An organisation’s marketing plan is driven by and must therefore be consistent with its corporate strategy.
- True
- False
- Which of the following statement is correct regarding ‘market strategy’?
- Market research is the process of gathering, recording, analysing and reporting data and information relating to the company’s market, customers and competitors.
- Market research is used to determine the characteristics of markets, suggest opportunities for products and selling approaches and to suggest segments.
- Both A&B are correct
- None
- A market segment is a group of consumers with distinct, shared needs
- True
- False
- A segment must be:
- Measurable – It must be possible to identify the number of buyers in each market segment so that their potential profitability can be assessed.
- Accessible – It must be possible to reach the segment
- Substantial – The cost of targeting a particular segment must be less than the benefit.
- All of the above
- One form of segmentation may be enough, or a number of variables may be used, to define the target market exactly. Possible bases include:
- Demographic (e.g. age, gender, geographical area)
- Socioeconomic (e.g. occupation, income)
- Psychological (e.g. lifestyle, values)
- Situational (e.g. occasion of use, frequency of purchase)
- All of the above
- Identify the issues that should be considered when evaluating potential target markets.
- Size of segment, growth potential
- Profit potential, degree of competition
- Accessibility and barriers to entry
- All of the above
- Perceptual mapping – is used to chart consumer’s perception of brands currently on offer and to identify opportunities for launching new brands or to reposition an existing brand.
- True
- False
- Market research is the way in which organizations find out what their customers and potential customers need, want and care about. It involves a number of data-gathering techniques and methods of analysis. Such techniques are:
- Primary research
- Secondary research
- Both A&B
- None
- Primary research – this is collected for the specific purpose of the research in question.
- True
- False
- Primary research methods include:
- Questionnaires
- Observation
- Interviews
- Experimentation
- All of the above
- Secondary research – this is data that is already available and is therefore cheaper and quicker than carrying out primary research. However, the data may not be accurate and may not meet the exact needs of the organization.
- The above statement is correct
- The above statement is incorrect
- Internal sources of secondary data may include:
- From existing information systems, Accounting data
- Customer databases, Data produced by other departments (eg complaints)
- Both A&B
- None
- External sources of secondary data may include:
- Published statistics from government, professional/ trade bodies
- Review of journals
- Research already collected by market research agencies can be purchased
- All of the above
- Market research plans can be analysed into:
- Defining the problem (Example Explaining a fall in sales, Investigating potential demand for a new product)
- Developing the hypotheses to be tested, and the purpose of the research (Example In some studies, the researchers have a particular question they want to test. The purpose of some research may be to see if it is worth doing further research)
- Collecting data (Example A variety of approaches are used, such as surveys or questionnaires)
- Analyse and interpret the data (Example The type of analysis depends on the type of research. Not all research is quantitative with statistical validity. The emphasis on statistical assumptions is important – statistics can be misunderstood and misused)
- Report the findings (Example The results of the research are written up and presented in a report to the client)
- (I) and (IV) only
- (I) (IV) (V) only
- All of the above
- None
- Quantitative data –:
- enables measurement. The purpose is to measure the response of a sample of consumers, on the assumption that measurable conclusions can be drawn from it. An example could be a survey of structured questionnaires sent out to a sample of a population.
- is not measurable, but it is useful to get people to say what they feel and think, as opposed to giving relatively simple answers to unstructured questions.
- Both A&B
- None
- Qualitative data –:
- enables measurement. The purpose is to measure the response of a sample of consumers, on the assumption that measurable conclusions can be drawn from it. An example could be a survey of structured questionnaires sent out to a sample of a population.
- is not measurable, but it is useful to get people to say what they feel and think, as opposed to giving relatively simple answers to unstructured questions.
- Both A&B
- None
- An estimate of demand as it would be ‘today’ could involve considering a number of factors. Identify such factor:
- Total market potential, Area market potential (geographic)
- Total industry sales and Relative market shares
- Both A&B
- None
- The amount of sales a product can achieve is known as sales potential. Factors influencing sales potential include:
- How ‘essential’ the product is to consumers
- The overall size of the market,
- The level of competition in the market
- Whether consumers may delay purchasing the product (non-essential luxury items)
- Price – high prices may restrict the market
- Promotional expenditure – investment in promotion may broaden the market.
- All of the above
- (II) (III) (V) only
- (II) (III) only
- None
- A market is not a single homogeneous group of customers wanting an identical product. Markets consists of potential buyers with different needs, and different buying behaviour.
- False
- True
- Industrial and commercial customers may also be segmented. Typical bases used for industrial segmentation include:
- Location – geographical area
- Ordering characteristics – such as frequency of orders and average order size
- Company characteristics – type of business, the market they operate in, and their size
- Expectations – what benefit does the company expect to get out of the product? ie reliability, quality, serviceability, support and safety
- All of the above
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