Marketing Principles Midterm Practice 1

1. Which of the following descriptions provides the best definition of the ‘marketing mix’?
A. The way products are arranged in a retail store to maximise sales
B. The way a business combines the main marketing elements to sell products that meet
the needs and wants of customers
C. The way a business distributes its products through retailers and wholesalers
D. The way products and priced and packaged

2. Which of the “4 P’s” of the marketing mix concerns the various outlets and channels a business
uses to distribute its products?
A. Promotion
B. Place
C. Price
D. Product

3. Which of the traditional “4 P’s” of the marketing mix concerns how much a customer pays for the
good or service being offered?
A. Promotion
B. Product
C. Place
D. Price

4. Which element of the marketing mix is the only one that directly affects the value of sales
achieved by a business?
A. Product
B. Promotion
C. Price
D. Place

5. The “4 P’s” of the marketing mix are closely linked and should not be thought as separate from
each other: True or False?
A. True
B. False

6. A business wishes to meet the needs and wants of customers better by delivering a higher quality
service. Which element of the marketing mix will the business focus on to achieve this?
A. Price
B. Place
C. Promotion
D. Product

7. A business wants to build customer awareness of features and benefits in its products that are
better than the competition. Which element of the marketing mix is most likely to help them
achieve this?
A. Price
B. Product
C. Place
D. Promotion

8. The marketing mix does not apply to very small businesses: True or False?
A. True
B. False

9. The way in which products are sold is known as a:

A. Distribution Channel
B. Marketing Source
C. Marketing Channel
D. Promotional Route
 Marketing Principles Midterm Practice 1

10. Which of the following is most related to the marketing concept?

A. Make a profit
B. Satisfy Customers
C. Gain market share
D. Increase sales

11. The proportion of the market held by one company or brand is known as:
A. market segment
B. market leadership
C. market share
D. market slice

12. A market segment at which a business aims its products and/or services is known as the:
A. market leader
B. unique selling point
C. main market
D. target market

13. A subgroup of people or organizations sharing one or more characteristics that cause them to
have similar product needs.
A. market
B. market section
C. target
D. market segment

14. When a business divides up groups of customers using terms like "working class", "middle class",
"professionals",etc what kind of market segmentation are they using?
A. demographic segmentation
B. religious segmentation
C. socio-economic segmentation
D. lifestyle segmentation

15. Which of the following is an advantage of using market segmentation?

A. It saves money by avoiding the need for TV advertising.
B. It lets a business invest more in its employees.
C. It allows a business to charge higher prices.
D. It allows a business to target its promotional strategy more effectively.

16. The clothing retailer Top Shop tries to appeal to the style-conscious, independent girl- ie. the
"fashion junkie" who goes shopping every week in pursuit of the latest hot fashions. What kind of
market segmentation is being used by Top Shop?
A. socio-economic segmentation
B. lifestyle segmentation
C. religious segmentation
D. demographic segmentation

17. When segmenting markets by: region of the country/world, market size, market density,or
climate, you are using:
A. psychographics segmentation
B. demographic segmentation
C. geographic segmentation
D. lifestyle segmentation
 Marketing Principles Midterm Practice 1

18. Usage rate segmentation is:

A. dividing a market by the amount of product bought or consumed.
B. grouping customers into market segments according to the benefits they seek from the product.
C. segmenting potential customers into neighbourhood lifestyle categories.
D. segmenting based of personality, motives, lifestyles, and geo-demographics.

19. What is the means of displaying or graphing, in two or more dimensions, the location of products,
brands, or groups of products in customers’ minds?
A. seasonal forecasting
B. perceptual mapping
C. coordinate plotting
D. positioning charts

20. The marketing mix is:

A. the way products are priced and packaged.
B. the way products are arranged in a retail store to maximize sales.
C. the way a business combines the main marketing elements to sell products that meet the
needs and wants of customers.
D. the way a business distributes its products through retailers and wholesalers.

21. Which of the 4 P's of the marketing mix concerns how much a customer pays for the good of
service being offered?
A. promotion
B. place
C. price
D. product

22. Which of the element of the marketing mix is the only one that directly affects the value of sales
achieved by a business?
A. product
B. place
C. price
D. promotion

23. The 4 P's of the marketing mix are closely linked and should not be thought as separate from
each other: true or false?
A. True
B. False

24. A business wishes to meet the needs and wants of customers better by delivering a higher quality
service. Which element of the marketing mix will be the focus to achieve this?
A. price
B. product
C. promotion
D. place

25. Positioning is the placing of a product in a random markets to get a spontaneous customer
responses.
A. True
B. False
 Marketing Principles Midterm Practice 1

26. Cannibalization occurs when sales of a new product

cut into sales of a firm’s existing products.
A. True
B. False

27. How many marketing functions did we cover in class?

A. 2
B. 3
C. 5
D. 7

28. Which principle states that 20 percent of all customers generate 80 percent of the demand?
A. The hady principle
B. The 80/20 principle
C. The 20/80 principle
D. The 80's principle

29. Target’s customers completed a three-question survey at checkout to determine if adding the
American Express One card would be a desired payment option. This is an example of:
A. Channel management
B. Marketing information management
C. Promotion
D. Selling

30. The owners of Toys R Us have a meeting to discuss what their competitors are charging and what
customers are willing to pay. This demonstrates which marketing function?
A. Channel management
B. Marketing information management
C. Marketing
D. Pricing

31. The local newspaper is printing “buy one get one free” coupons for Mountain Dew. This is an
example of which marketing function?
A. Marketing information management
B. Product/service management
C. Promotion
D. Selling

32. Determining whether to use a truck or train to transport products is part of which function of
marketing?
A. Distribution
B. Marketing information management
C. Risk management
D. Selling

33. Bridgestone decided to offer a new line of snow tires. Under which marketing function does this
decision fall?
A. Distribution
B. Product planning
C. Selling
D. Financing
 Marketing Principles Midterm Practice 1

34. Which marketing function helps marketers answer the question, “What are we going to produce
or sell?”
A. Pricing
B. Marketing Information Management
C. Product Planning
D. Financing

35. Many grocery stores have made the decision to accept credit cards for payment of merchandise.
Which marketing function does this decision represent?
A. Pricing
B. Distribution
C. Purchasing
D. Financing

36. Which marketing function helps business people forecast how much will be sold in a given
period?
A. Marketing Information Management
B. MIM
C. Research
D. all of the above

37. Telemarketing is an example of which marketing function?

A. Selling
B. Buying
C. Pricing
D. Storing

38. Macy's customers completed a survey that was sent through their emails. This is an example of:
A. Channel management
B. Marketing information management
C. Promotion
D. Selling

39. The physical location of a business and he site where the reservation for the hotel is made.
A. Product
B. Price
C. Place
D. Promotion

40. When you buy a piece of clothing or a digital camera, you are involved in marketing.
A. True
B. False

41. The entire process of moving, handling, and storing goods from the producer to the consumer is
called:
A. packaging
B. distribution
C. production
D. marketing
 Marketing Principles Midterm Practice 1

42. Which marketing function helps business people forecast how much will be sold in a given
period?
A. risk management
B. distribution
C. MIM
D. promotion

43. The amount that a hotel charges for its product is ____________.
A. Product
B. Price
C. Place
D. Promotion

44. Which of the following descriptions provides the best definition of the marketing mix?
A. The way products are arranged in a retail store to maximize sales
B. The way a business combines the main marketing elements to sell products that meet the
needs and wants of customers
C. The way a business distributes its products through retailers and wholesalers
D. The way products and priced and packaged

45. The market segmentation based on your target market’s personal characteristics.
A. product benefits
B. psychographics
C. demographics
D. geographics

46. Psychographics will analyze a consumer's _________________

A. income level.
B. local market.
C. stage in family life cycle.
D. activities they enjoy.

47. Market segmentation based on where your target market lives.

A. demographics
B. psychographics
C. geographics
D. product benefits

48. Product benefits analyzes a consumer's ______________

A. income level.
B. local market.
C. stage in family life cycle.
D. activities they enjoy.

49. The marketing mix is based upon the ____ elements.

A. 2
B. 4
C. 6
D. 8

50. Which of the “4 P’s” of the marketing mix deals with the communication of new and or existing
products/services?

A. Promotion
B. Place
C. Price
D. Product