1. Advertising and marketing are the same thing. True or false?

True

False

2. The American Marketing Association’s definition of marketing is; ‘Marketing is the set of activities which lead to profitable exchanges which add value to the seller’s business’. True or false?

True

False

3. A company which invests most of its budget into sales training and support of their sales teams, is likely to have a market orientation. True or false?

True

False

4. Transactional marketing is more concerned with making the immediate sale than with building relationships. True or false?

True

False

5. Regular customers are all brand loyal. True or false?

True

False

6. Define the term ‘market’.

1. a place where similar products grouped together
2. a competitive high street
3. a place where buyers and sellers meet
4. a basket of goods
5. a shopping mall

7. How might you categorise the market for office photocopiers?

1. B2C
2. B2B
3. C2C
4. C2B
5. B2B

8. What is the difference between the term ‘customer’ and the term ‘consumer’?

1. There is no difference.
2. The term consumer refers only to people who buy food and drink products.
3. Customers buy products but it is consumers who use them.
4. Customers make organisational rather than personal purchases.
5. Consumers buy products on behalf of customers.

9. In what way does an organisation’s ‘strategic orientation’ affect the way it operates?

1. It guides the organisation’s marketing activities and strategy.
2. It dictates appropriate sources of funding.
3. It assists the government in classifying the organisation.
4. It affects shareholders’ decisions about how the organisation should be run.
5. It helps an organisation to choose the best advertising strategy.

10. Which form of strategic orientation focuses on customers and competition?

1. customer orientation
2. product orientation
3. sales orientation
4. societal orientation
5. market orientation

11. Why is marketing important in a demand-driven economy?

1. Consumers have lots of choice.
2. There is competition for customers.
3. Supply often exceeds demand.
4. All of the above.
5. None of the above.

12. It is often said that marketing is about managing the exchange process. In an exchange one person or organisation gives up something of value (e.g. a product) in return for something else of value (e.g. money). If an exchange is based on good marketing principles, who benefits most and how?

1. The seller manages to overcharge the customer without them realising it.
2. The buyer gets away without paying.
3. The seller persuades the customer that the product is better than it really is.
4. It is a fair exchange that makes both seller and buyer happy.
5. It is the most profitable exchange for the seller.

13. It is generally recognised that one of the best ways to get an advertising message across is through word of mouth, that is, getting people to pass on the message to friends and family. Why is this such a successful way to get messages heard?

1. It is free as there is no need to do any advertising.
2. The message reaches lots of people fast and is more likely to be believed.
3. The message is not wasted on people who will not buy your products anyway.
4. The message keeps being passed on forever and so more people hear it.
5. The message can be more complicated as you have experts to explain it.

14. Many consumers now ask other consumers for advice on products rather than consulting manufacturers or retailers. What makes it easier for them to do this?

1. Modern mobile phones have internet connections and more sophisticated cameras.
2. New European regulations mean that manufacturers no longer have exclusive rights to give advice and guidance about their products.
3. The Consumers’ Association has run a number of conferences and set up an advice share network.
4. The government has encouraged manufacturers to delegate this responsibility to other consumers in order to save costs.
5. Social networking sites, blogs and online reviews have made it easier and cheaper for consumers to self-publish and communicate.

15. How is a ‘supply-led’ market characterised?

1. There is a surplus of goods for sale.
2. There is a shortage of goods for sale.
3. There is an exact match between goods available for sale and goods wanted for purchase.
4. There are no goods available.
5. There are too many suppliers.

16. What is ‘marketing communications’ an alternative term for?

1. promotion
2. email
3. sales talk
4. price lists
5. product literature

17. What is the point where the supply curve and the demand curve cross called?

1. breakeven point
2. equilibrium point
3. point of balance
4. apex point
5. maximising point

18. What is the term for a market in which products are sold to organisations who will use them to make other products? For example, flour may be sold to a bakery which uses it to bake cakes.

1. consumer market
2. reseller market
3. B2B market
4. industrial market
5. supplier market

19. What are brand ambassadors?

1. salespeople who work on a particular brand, or range of brands
2. bloggers who advocate the benefits of branding
3. individuals who feel strongly about a brand and recommend it highly to other people
4. export agents who make the first approaches to distributors in a foreign market
5. the first people to try a new brand

20. In a competitive market it is important to retain customers, keep them happy and increase the value of their orders. One of the techniques that has evolved to assist with this is called:

1. cause-related marketing
2. transactional marketing
3. buzz marketing
4. customer relationship management
5. consumer data management

21. A retailer who has both an online and high street presence (e.g. John Lewis, Top Shop) is sometimes referred to as bricks and ______.

22. In the twentieth century, many organisations moved from a product focus to a ______ focus.

23. Peter Drucker, a world renowned marketer, once famously said, ‘The aim of marketing is to make ______ superfluous’

24. Market ______ is vital in understanding customer needs and how to design products and services to meet those needs.

25. It is often said that 20 per cent of a firm’s customers generate ______ of its profits (the Pareto principle).