Chapter-1 BASIC OF RURAL MARKETING

Self Assessment Questions

1 Rural markets and rural marketing involve a number of strategies, which include:
a.
b.
c.
d.

Management of demand
Developmental marketing
Unique selling proposition (USP)
All of these

2 Rural marketing is similar as simply marketing. Rural marketing differs only in terms of buyers
here; target market consists of customers living in rural areas.
(a) True

(b) False

3 Which type of market buys goods and services for further processing or for use in the production
process?
a.
b.
c.
d.

Business
Consumer
Retail
Reseller

4 The natural resources that are needed as inputs by marketers or that are affected by marketing
activities are referred to as the ________.
a.
b.
c.
d.

Endangered environment
Raw material market
Natural environment
Green movement

5 Which of the following represents the most dramatic force shaping a modern marketer's destiny?
a.
b.
c.
d.

The natural environment

Deregulation
The technological environment
The political environment

6 Workers, managers, and members of the board of directors are all part of a company's ________.
a.
b.
c.
d.

Market public
Local public
Internal public
Intermediary public

7 Research has shown that the most important demographic trend in Europe is the ________.
a.
b.
c.
d.

Changing age structure of the population

Aging population
Increase in professional jobs
Mobility of people

8 Rural marketing involves delivering manufactured or processed inputs or services to rural

producers or consumers so as to soak up the huge size of the untapped rural market.
(a) True

(b) False

9 A marketing philosophy summarized by the phrase "a good product will sell itself" is
characteristic of the _________ period.
a.
b.
c.
d.

Productions
Sales
Marketing
Relationship

10 In the relationship marketing firms focus on __________ relationships with __________.

a.
b.
c.
d.

Short term; customers and suppliers

Long term; customers and suppliers
Short term; customers
Long term; customer

11 Which of the following places satisfies the criteria to be considered an urban area?
a.
b.
c.
d.

A place in the United States with 2,500 or more inhabitants.

A place in Greece with at least 10,000 inhabitants.
A place in Nicaragua with 1,000 or more inhabitants.
All of these

12 The functions of... finance and marketing should be integrated to satisfy the needs and
expectations of customers.
a.
b.
c.
d.

Sales
Production
Marketing
Relationship

13 Marketing are successful only when it is capable of maximizing profitable sales and achieves
long-run customer satisfaction.
(a) True

(b) False

14 The consumer .and consumption patterns also differ across rural and urban areas, in
many products rural consumption now accounts for a large share then urban.
a.
b.
c.
d.

Consumer
Retail
Demand
Reseller

15 Every producer or manufacturer and the business organization has also to determine beforehand,
prior to undertaking its marketing, as to what shall be the price of their product?
(a) True

(b) False

16 Which are the components of marketing concept are as under:

a. Satisfaction of Customers
b. Integrated Marketing
c. Profitable Sales Volume

d. All of these

17 The greatest problem in the rural market is to reach the customer or retailer.
(a) True

(b) False

18 The process should not be able to straddle the attitudinal and socio-economic disparity between
the urban and rural customers.
(a) True

(b) False

19 The most important theme of is acceptability.

a.
b.
c.
d.

Marketing Communications Mix

Promotional Mix
Marketing Mix
All of these

20 To promote consumer durable inside a state costs $ 100 thousand while in urban areas it will costs
in millions.
(a) True

(b) False

Answers for Self Assessment Questions

1. (d)

2.(a)

3.(a)

4.(c)

5.(c)

6.(c)

7.(a)

8.(a)

9.(a)

11.(d) 12.(b) 13.(a) 14.(d) 15.(a) 16.(d) 17.(a) 18.(b) 19.(c)

10.(b)
20.(a)

Chapter-2 Rural Marketing Environment

Self Assessment Questions
1. The purpose of . is to conceive, analyze, and creatively select channels of
communication that will direct advertising messages to the right people in the right place at the
right time.
a. communications strategy
b. media targeting
c.

media differentiation

d. media planning
2. The media department for a manufacturer of gardening tools is developing a media plan. Which
of the following is not a question to be answered during the media planning process?
a. Should we advertise nationally or only in rural areas?
b. Should we use print or broadcast media?
c.

Should we concentrate our advertising during the summer season?

d. Who should be responsible for the media plan?

3. Media objectives have two major components: objectives and .objectives.
a. scheduling; media-vehicle
b. audience; message-distribution
c.

reach; frequency

d. gross impression; rating

4. Assume the audience for Dr. Phil on channel 11 is 115,000. During the months of February and
March, a local health club ran 16 ads during the show. This is the only advertising the health club
did during those two months. Its .. equals 1,840,000.
a. OTS
b. message weights
c.

effective frequency numbers

d. gross impressions
5. Land is one of three major factors of production in classical economics and an essential input for
housing and food production.
a. True
b. False

6. . measures the intensity of a media schedule.

a. Rating
b. Gross impression
c.

Frequency

d. Reach
7. The advertising response curve indicates that:
a. incremental response to advertising actually diminishes with repeated exposures.
b. audience fragmentation actually increases effective reach.
c.

repeated exposures to ads actually increase advertising success.

d. recency planning does not apply to advertising for services.

8. Conflicts with nonfarm neighbors and vandalism, such as destruction of crops and damage to
farm equipment, are major concerns of farmers at the urban fringe
a. True
b. False
9. The advertising messages for the most recent Harry Potter movie were communicated through the
use of a Web site, television commercials, newspaper ads, theater advertising, and publicity. The
film company promoting this movie used a approach.
a. targeted media
b. mixed-media
c.

flooding

d. marketing mix
10. To reach its target audience, the Office of National Drug Control Policy creates advertising
messages, such as "the coolest kids don't do drugs," which it uses extensively in a four to six weeks
campaign. Then its policy is to stop all advertising for a two-week period. After the hiatus, it returns
with a different advertising message. What method for media scheduling is the Office of National
Drug Control Policy using?
a. Continuous
b. Uninterrupted
c.

Flighting

d. Incessant
11. The three elements of the creative mix are the target audience, the advertising message, and the
communications media.
a. True

b. False
12. Media planners refer to the duration of an advertising message or campaign over a given period
of time as regularity.
a. True
b. False
13. Which of the following would not be included in the cost of a separately acquired intangible
asset?
a. Non-refundable value added tax
b. Employee costs incurred in preparing the asset for its intended use
c.

Costs incurred in using the asset

d. Testing costs
14. How should research and development expenditure be dealt with in an entity's financial
statements?
a. Research and development expenditure should always be written off as an expense
b. Research and development expenditure should always be capitalized as an
intangible asset
c.

Research expenditure should always be written off as an expense but development

expenditure should always be capitalized as an intangible asset

d. Research expenditure should always be written off as an expense but development

expenditure should be capitalized as an intangible asset if it satisfies certain
conditions
15. Expenditure on advertising and promotion never gives rise to the acquisition of an intangible
asset. True or False?
a. True
b. False
16. The revaluation model cannot be used for the measurement of an intangible asset unless:
a. The asset is revalued every year
b. The fair value of the asset is determined by a professional value
c.

There is an active market in that type of asset

d. The revaluation model is also used for tangible assets

17. The rural market presents an exciting opportunity to develop brands into generic product
association.

a. True
b. False
18. If 60 percent of the 200,000 people in a target market tune in to the local country music radio
station at least once during a given period of time, the station's is 120,000.
a. rating
b. advertising impression
c.

reach

d. frequency
19. People are sometimes inadvertently exposed to conflicting or confusing messages of familiar
products from neighboring countries. This issue is referred to as the problem of:
a. ineffective reach.
b. spillover media.
c.

ineffective frequency.

d. lack of continuity.
20. As urbanization intensifies, agricultural and nonagricultural land use conflicts become more
severe.
a. True
b. False

Answers for Self Assessment Questions

1. (d)

2.(d)

3.(b)

4.(d)

5.(a)

6. (c)

7.(b)

8.(a)

9.(b)

10.(c)

11. (b)

12.(b)

13.(c)

14.(c)

15.(a)

16. (c)

17.(a)

18.(c)

19.(b)

20.(a)

Chapter-3 Rural Consumer Behavior

Self Assessment Questions
1 ________ is never simple; yet understanding it is the essential task of marketing management.
a.
b.
c.
d.

Early adoption
Consumption pioneering
Consumer buying behavior
Understanding the difference between primary and secondary data

2 The starting point to understanding how consumers respond to various marketing efforts is the
________ model of a buyer's behavior.
a.
b.
c.
d.

Post purchase dissonance

Post purchase feeling
Stimulus-response
Belief

3 In the model of buyer behavior, which of the following is not a major type of force or event in the
buyer's environment?
a.
b.
c.
d.

cultural
political
economic
channels

4 Marketers are always trying to spot ________ in order to discover new products that might be
wanted.
a.
b.
c.
d.

groups
cultural shifts
dissonance
lifestyles

5 ________ are becoming a very attractive market: they are the ideal market for exotic travel,
restaurants, high-tech home entertainment products, leisure goods and services, and designer
furniture and fashions.
a.
b.
c.
d.
e.

Italians
Mature consumers
Europeans of African origin
East Europeans
Teenagers

6 ________ are society's relatively permanent and ordered divisions whose members share similar
values, interests, and behaviors.
a.
b.
c.
d.

Social classes
Lifestyles
Purchase decisions
Subcultures

7 Family is one of the ________ factors that influence consumer behavior.

a.
b.
c.
d.

Personal
Psychological
Business
Social

8 Because business purchases are usually more complex than consumer purchases, business buyers
tend to ________.
a.
b.
c.
d.

Make quicker purchasing decisions

Act independently
Use a more formalized buying process
Rely on intuition

9 Which of the following is not included in the decision-making unit of a buying organization?
a.
b.
c.
d.

Individuals who make the buying decision

Individuals who control buying information
Individuals who supply the product
Individuals who use the product or service

10 The .model of buying behavior, according to Fox all, presents a sophisticated

integration of the psychological and various social and marketing influences on consumer choice,
into a coherent sequence of information processing.
a.
b.
c.
d.

Sociological Model
Howard-Sheth
Freudian Model
All of these

11 Cultural factors have a significant impact on customer behavior.

(a) True

(b) False

12 The law of supply and demand demonstrates the relationship between supply, demand and
prices.
(a) True

(b) False

13 Lifestyle marketing is not a process of establishing relationships between products offered in the
market and targeted lifestyle groups.
(a) True

(b) False

14 The market maven is an intense case of an opinion leader kind of person.

(a) True

(b) False

15 The definition of the term innovation can be:

a. Firm oriented (new to the firm)

b. Consumer oriented (new to the customer),

c. Market-oriented definitions of innovation are most useful to consumer researchers in
the study of the diffusion and adoption of new products.
d. All of these

16 Which are the product characteristics influence the consumers acceptance of a new product:
a.
b.
c.
d.

Relative Advantage
Compatibility
Complexity
All of these

17 Diffusion of innovation refers to the spreading of consumption of an innovation, through

communication channels in a..
a.
b.
c.
d.

Social system
Cultural system
Political system
Technological system

18 Some cultures tend to adopt new products more quickly than others, based on several factors:
a.
b.
c.
d.

Modernity
Homophile
Physical Distance
All of these

19 If there is low involvement and the product/market is established then sales promotions should
be used for:
a.
b.
c.
d.

Loyal to increase loyalty

Loyal to reward and increase usage
Loyal to encourage trial
All to block out the competition

20 Levels of customer loyalty can be determined by attitudinal surveys.

(a)True

(b) False

Answers for Self Assessment Questions

1. (c)

2.(c)

3.(d)

4.(b)

5.(b)

6.(a)

7.(d)

8.(c)

9.(c)

10.(b)

11.(a) 12.(a) 13.(b) 14.(a) 15.(d) 16.(d) 17.(a) 18.(d) 19.(b) 20.(b)

Chapter-4 Researching Rural Market

Self Assessment Questions
1 FMCG stands for
a.
b.
c.
d.

First Moving Consumer Goods

Fast Moving Consumer Goods
For Moving Consumer Goods
None of these

2 The consumer market is a multi-tiered pyramid which requires multi pronged market strategies.
(a)True

(b) False

3 A is that element or elements considered available for selection in some stage of the
sampling process.
a.
b.
c.
d.

Sampling frame
Population
Sampling unit
None of these

4 Marketing efforts and sociological influences on the consumer are aspects of which stage in the
consumer decision-making model?
a.
b.
c.
d.

The input stage

The process stage
The output stage
The post-purchase evaluation

5 The qualitative research strategy places a value on:

a.
b.
c.
d.

Using numbers, measurements and statistical techniques

Generating theories through inductive research about social meanings
Conducting research that is of a very high quality
All of the above

6 Which of the following is an example of value-free research?

a. Conscious partiality

b. Sympathy for the underdog

c. Unstructured interviewing
d. None of these

7 An important practical issue to consider when designing a research project is:

a.
b.
c.
d.

Which theoretical perspective you find most interesting

Whether or not you have time to retile the bathroom first
How much time and money you have to conduct the research
Which color of ring binder to present your work in

8 To ensure the direct market research is done effectively and efficiently:

a.
b.
c.
d.

Decide on the appropriate sample size.

Decide who you will contact for the sample.
Develop a questionnaire and letter needed to gather the information
All of these

9 The ..of marketing a new product or service begins when we create a frame of reference.
a.
b.
c.
d.

Product
Process
Procedure
None of these

10 Which is the process of marketing occurs in steps:

a.
b.
c.
d.

Developing a marketing strategy

Building a marketing plan
The relative advantage of the innovation over alternative ideas
Both (a) and (b)

11 The perceived .advantage is typically one of the best predictors of the rate of adoption of
an innovation.
a.
b.
c.
d.

Compatibility
Relative
Complexity
None of these

12 MDG stands for

a.
b.
c.
d.

Millennium Development Goods

Master Development Goals
Millennium Development Goals
All of these

13 When a company acquires a supplier through an acquisition strategy, this is referred to as:
a.
b.
c.
d.

Forward integration
Vertical marketing system
Horizontal integration
Backward integration

14 Introducing new products to existing markets is an example of:

a.
b.
c.
d.

Conglomerate diversification
Concentric diversification
Horizontal diversification
Vertical diversification

15 The ECA region covers an immense area with great diversity in geography, cultures, religions
and societies and is home to about 480 million inhabitants.
(a)True

(b) False

16 A market where new securities are bought and sold for the first time is known as a __________
market.
a.
b.
c.
d.

Primary
Secondary
Tertiary
Capital

17 GDDS stands for

a.
b.
c.
d.

Global Data Dissemination System

General Data Dissemination System
Golden Data Dissemination System
All of these

18 A market for relatively long-term (greater than one year original maturity) financial instruments
(e.g., bonds and stocks) is known as the __________ market.
a.
b.
c.
d.

Primary
Secondary
Tertiary
Capital

19 PRA tools and techniques could be used at all levels of project formulation and implementation.
(a)True

(b) False

20 Which are types of PRA?

a.
b.
c.
d.

Exploratory
Topical
Problem Solving
All of these

Answers for Self Assessment Questions

1. (b)

2.(a)

11.(b) 12.(c)

3.(c)

4.(a)

13.(a) 14.(c)

5.(b)

6.(d)

7.(c)

8.(d)

9.(b)

10.(d)

15.(a) 16.(a) 17.(b) 18.(d) 19.(a) 20.(d)

Chapter-5 Rural Marketing Strategies

Self Assessment Questions
1. Most manufacturers and marketers do have a distribution arrangement for with a
population of at least 5000 people.
a.
b.
c.
d.

village
country
word
None of these

2. Market segmentation is the process in marketing of dividing a market into distinct subsets
(segments) that behave in the same way or have similar needs.
(a) True

(b) False

3. The way in which the product is delivered to meet the customers needs refers to:
a. New product concepts and improvements
b. Selling
c. Advertising and promotion activities
d. Place or distribution activities
4. Apple has done a lot through its advertising to promote itself, through its unintimidating icons, as
a computer for non-geeks.
a.
b.
c.
d.

Dell
HP
Sony
Apple

5. Using., the computer then identifies positions of each brand on a map of a given number of
dimensions.
a. computer language
b. computer algorithms
c. computer information

d. None of these

6 Which of the following terms is used to describe the factors and forces outside marketing that
affect marketing management's ability to build and maintain successful relationships with target
customers?
a.
b.
c.
d.
e.

strategic planning
target markets
the marketing environment
the marketing mix
none of the above

7 Marketers should be aware of laws, government agencies, and pressure groups that influence or
limit various organizations and individuals in a given society. This is the ________ environment.
a. legal-technological
b. political
c. economic
d. socio-legal
e. cultural
8 As marketing manager for Laser Industries, you should be aware that legislation affecting business
around the world will continue to ________.
a. threaten the American domestic economy
b. exist
c. remain steady
d. increase
9 How many types of segmentation variables?
a.
b.
c.
d.

2
3
4
5

10.is the division of the market according to different geographical units like continents,
countries, regions, counties or neighborhoods.
a.
b.
c.
d.

Demographic segmentation
Market segmentation
Geographic segmentation
None of these

11..are commonly used in indexes and databases measuring consumers preferences for
brands, products and media.
a. Demographic variable
b. Market variable
c. Geographic variable
d. None of these
12 Evaluating different market segments, the firm must look at .the segment overall
attractiveness and the company objectives and resources.
a. one factors
b. two factors
c. Three factors
d. Four factors
13 In the beginning of the ..Michael Porter contributions to Strategic Management had a
great influence in Marketing.
a. 80s and throughout the 90s
b. 90s and throughout the 100s
c. 100s and throughout the 110s
d. None of these
14 One of the most important decisions that a company makes is what market coverage strategy to
use for a brand.
(a) True

(b) False

15 A company carrying fixed costs (sales force, store outlets) can add products to absorb and share
some costs.
(a) True

(b) False

16 Multiattribute segmentation models are complex but give the best overall picture of the
customers.
(a) True

(v) False

17 Marketers can take a(n) ________ by taking positive action to affect the publics and forces in their
marketing environments.
a. Environmental perspective

b. Relationship building perspective

c. Proactive stance
d. Natural management perspective

18 A potential segments must have characteristics that make it generally attractive, such as size,
growth, profitability, scale economies, and low risk.
(a) True

(b) False

19 This evolution meant a broader analysis and a need for a strategy to coordinate different Medias
and advertising possibilities.
(a) True

(b) False

20 Improved segmentation can lead to significantly improved marketing effectiveness.

(a) True

(b) False

Answers for Self Assessment Questions

1. (a)

2.(a)

3.(d)

4.(d)

5.(b)

6.(c)

7.(b)

11.(a) 12.(b) 13.(a) 14.(a) 15.(a) 16.(a) 17.(c)

8.(d)

9.(a)

10.(c)

18.(a) 19.(a) 20.(b)

Chapter-6 Product Strategy

Self Assessment Questions
1. Price is generally determined:
a. as a result of competitions prices.
b. primarily as a result of customer demand.
c.

primarily from cost.

d. all of these.
2. Targeting leads to benefits because:
a. it helps to decide upon relevant strategies.
b. it leads to greater effectiveness for the marketing mix.
c.

it helps to focus on the needs of the target market.

d. all of these.
3. The biggest challenges for marketers are:
a. targeting the market places.
b. creating awareness of a brand.
c.

testing the new product scheme.

d. all of these.
4. It is important to understand the interrelationship between price, quality and value because:
a. it brings about improved profits to the company.
b. it underpins pricing strategy.
c.

it plays a significant role in customers buying behaviour.

d. all of these.
5. Setting the right price is crucial to:
a. the promotion of the tourism enterprise.
b. the principle of the tourism enterprise.
c.

the profitability of the tourism enterprise.

d. all of these.
6. A distribution system is the mix of channels used to:
a. seek the opportunities of the tourism market.
b. gain access to the potential buyers of the product.
c.

test the potential markets of the product.

d. all of these.
7. In which stage of the product life cycle should product strategy focus on forecasting capacity
requirements?
a. introduction
b. growth
c.

maturity

d. decline
8. Which of the following helps operations managers direct their efforts toward those items that
show the greatest promise?
a. value engineering
b. financial analysis
c.

product cost justification

d. product-by-value analysis
9. In which stage of the product life cycle should product strategy focus on improved cost control?
a. introduction
b. growth
c.

maturity

d. decline
10. Among the elements that make products more friendly to the environment are
a. using less materials
b. more recycled materials
c.

using less energy

d. ability to recycle product

e. all of the above
11. Value analysis takes place
a. when the product is selected and designed
b. during the initial stages of production when something needs to be done to assure product
success
c.

when the product is first conceived

d. during the production process when it is clear the new product is a success
12. The dimensions, tolerances, materials, and finishes of a component are typically shown on a(n)
a. assembly chart

b. engineering drawing
c.

bill of material

d. assembly drawing
e. route sheet
13. Which of the following does not result from the effective use of group technology?
a. reduced tooling setup time
b. simplified training
c.

reduced raw materials and purchases

d. improved layout, routing, and machine loading

14. Which of the following typically shows the components, their description, and the quantity of
each required to make one unit of a product?
a. an engineering drawing
b. an assembly drawing
c.

a bill of material

d. an assembly chart
15. Companies no longer shy away from going that extra mile to woo rural customers.
a. True
b. False
16. Group technology requires that
a. each component be identified by a coding scheme that specifies the type of processing and
the
a. parameters of the processing
b. a specific series of engineering drawings be prepared
c.

all bill of material be prepared using the same format

d. the final products be standardized

17. The list of food items that your restaurant customers want the kitchen to prepare is an example
of
a. an assembly chart
b. a route sheet
c.

a bill of materials

d. a work order
18. The work order shows, in schematic form, how the product is assembled?

a. lists the operations, including assembly and inspection, necessary to produce the
component with the
b. material specified in the bill of material
c.

provides detailed instructions on how to perform a given task

d. gives the instruction to make a given quantity of a particular item, usually to a given
schedule
19. Which of the following is documented on a bill of materials?
a. the tolerances for each component
b. the cost of the product
c.

the components, their description, and the quantity of each required to make one unit of a
product

d. the existing inventory level for the product

20. Warehousing is another major problem in rural areas, as there is hardly any organized agency to
look after the storage issue.
a. True
b. False

Answers for Self Assessment Questions

1. (d)

2.(d)

3.(b)

4.(d)

5.(c)

6. (b)

7.(b)

8.(d)

9.(c)

10.(e)

11. (d)

12.(b)

13.(b)

14.(c)

15.(a)

16. (a)

17.(d)

18.(d)

19.(c)

20.(a)

Chapter-7 New Product Development

Self Assessment Questions
1. The cost of new product development is great and the introduction of a new washing powder will
typically include which of the following investments?
a. Market trials.
b. Consumer focus groups.
c.

Market research.

d. All of the above.

2. What features are normally associated with new product development?
a. The need to trademark the product or process.
b. Variable time frames before a product is brought to market.
c.

Development of unique superior product features.

d. High investment costs.

e. All of the above.
3. When companies identify a small number of test sites and cities to conduct a full marketing
campaign to ascertain the response of the consumer to the new product, this process is referred to as:
a. niche testing.
b. controlled test marketing.
c.

simulated test marketing.

d. standard test marketing.

4. To ensure success of new products, which market segment should be targeted initially?
a. Early adopters.
b. Laggards.
c.

Late majority.

d. Innovators.
5. The type of newness (new to the company, new to the market) may be explained by which of the
following?

a. A radical new product with innovation.

b. A me-too product.
c.

Innovative me-too product, new to the market.

d. The core product is familiar to the market.

6. Which of the following is a feature of continuous innovation?
a. Latent innovation.
b. Concentrated innovation.
c.

Regular innovation.

d. Sporadic innovation.
7. Organizations do not operate in a static environment. Changing technology, changing customer
tastes and preferences, and changing competitor product ranges should result in which of the
following?
a. New product development.
b. Financial development.
c.

New resources development.

d. Human resource development.

8. There are two main approaches to New Product Development. Which of the following are these
approaches?
1) Spontaneous.
2) Delayed.
3) Radical.
4) Reactive.
5) Proactive.
a. 2,3,
b. 4,5,
c.

1,2,

d. 1,3,
9. Which of the following is not a stage in the product life cycle?
a. Withdrawal.
b. Growth.
c.

Introduction.

d. Maturity.
10. New product development should be largely the preserve of the:
a. R&D function
b. Production function
c.

None of the above

d. Marketing function
11. New product development is best viewed as:
a. A function within innovation management
b. A group of activities within R&D management
c.

None of the above

d. Separate from innovation management

e. A group of activities within innovation management
12. From which perspective is it possible to view the development of new products?
a. All of the above
b. Design and engineering
c.

Marketing

d. Economics
13. The key inputs to any new product strategy should come from:
a. On-going marketing strategy
b. On-going corporate strategy
c.

External environmental changes

d. all of the above

14. Ansoff suggested new product development was a strategy for growth through:
a. Developing new products for new markets
b. Developing new products for existing markets
c.

None of the above

d. Using current products in new markets

15. Johnson and Jones suggested there were many different product development opportunities
open to a firm; these included:
a. Diversifying to add new consumers
b. Extending the product line
c.

Replacement of products

d. All of the above

16. In theory it is possible to create a new product by:
a. Changing the quality hanging the quality
b. Changing the packaging
c.

Changing the design

d. All of the above

17. A key feature of network models of new product development is the emphasis on:
a. Internal and external linkages
b. All of the above
c.

Linkages with suppliers

d. Linkages with customers

18. Which of the following are classes of new product models?
a. All of the above
b. Activity stage models
c.

Across functional models

d. Departmental stage models

19. Many marketing text books refer to new product development as:
a. None of the above
b. A linear process
c.

A TQM process

d. A simple departmental-stage process

20. New to the world products represent those products that:
a. All of the above
b. Create a new technology
c.

Create a new market

d. Use patented technology

Answers for Self Assessment Questions

1. (d)

2.(e)

3.(d)

4.(d)

5.(a)

6. (c)

7.(a)

8.(b)

9.(a)

10.(c)

11. (e)

12.(a)

13.(d)

14.(b)

15.(d)

16. (d)

17.(a)

18.(a)

19.(b)

20.(b)

Chapter-8 Distribution Strategy

Self Assessment Questions
1. In marketing jargon and according to the elements of the marketing mix, distribution is often
referred to as .., to cover the decisions and strategies that enable the product to flow to
the consumer, whether from the market direct to the home, via a wholesaler or from a retail outlet.
a. place
b. process
c.

positioning

d. promotions
2. Retailers have to ensure a close match between their capabilities and the merchandise offered.
They must have a clear understanding of which of the following?
a. Store location; customer service; intermediaries; merchandise selection; image.
b. Store location; customer service; intermediaries.
c.

Store location; customer service.

d. Store location; customer service; merchandise selection; image.

3. The linking of members of distribution channels through formal agreements rather than
ownership is known as a contractual system. Which of the following is an example of a contractual
system?
a. Family business.
b. Newsagents.
c.

Franchises.

d. Village shops.
4. The range and quality of services offered varies considerably from retailer to retailer. Which of the
following are examples of the three types of service level?
a. Full service; limited service; self service.
b. Reduced service; full service; extended service.
c.

Protracted service; limited service; self service.

d. Extended service; limited service; self service.

5. There are always problems for retailers related to depth of range or breadth of range. A traditional
retail store has to restrict its choice because of which of the following?
a. Pressures of time and money.
b. Limited customers who visit the store.
c.

Limited supervisory staff.

d. Pressures of space and display requirements.

6. Without the back-up of a customer orientation, which of the following would be resolved to suit
the supplier's, not the customer's, abilities and preferences?
a. Timing.
b. Location.
c.

Issues of supply.

d. All of the above.

7. Which of the following is a long channel?
a. Producer-retailer-consumer.
b. Producer-wholesaler-retailer-consumer.
c.

Consumer-retailer-wholesaler.

d. Wholesaler-retailer-consumer.
8. Organizational goods often involve close technical and commercial dialog between buyer and
seller. The type and frequency of purchase and the quantity purchased, affect the channel structure.
Which of the following is not one of these organizational distribution channels?
a. Manufacturer-agent-distributor-user.
b. Manufacturer-user.
c.

Manufacturer-agent-distributor-retailer-user.

d. Manufacturer-agent-user.
9. Manufacturer-user. This direct channel is most appropriate where the goods being sold have
which of the following characteristics?
a. Low unit cost.
b. No technical content.
c.

Low technical content.

d. High unit cost.

10. The role of the intermediary is to do which of the following?
a. Limit liability.
b. Increase efficiency and reduce costs.
c.

Limit transactions between manufacturer and customer.

d. Increase order size and reduce expenses.

11. Some intermediaries add logistical value in various forms. Which of the following is not an
example of logistical value?

a. Breaking of bulk packs so as to sell smaller quantities.

b. Sorting.
c.

Storage.

d. Transformation.
e. Differentiating.
12. When choosing the channel structure, which of the following should be considered in making
one's choice of channel decision?
a. Profit margins.
b. Market coverage.
c.

The value that will be added.

d. Product characteristics.
e. All of the above.
13. In achieving this market coverage effectively and efficiently, there are three alternative models of
distribution intensity. Which of the following are they?
a. Penetrating; inclusive; exclusive.
b. Intensive; exclusive; selective.
c.

Intensive; penetrating; inclusive.

d. Inclusive; exclusive; selective.

14. Selective distribution is usually associated with which type of goods?
a. Luxury goods.
b. Shopping goods.
c.

Organizational goods.

d. Industrial goods.
15. There are many influences on channel strategy. Which of the following are examples of these
influences?
a. The product.
b. The market.
c.

Buying complexity and behavior.

d. The environment.
e. All of the above.
16. Decisions regarding distribution channels are of great significance to the manufacturers.
a. True
b. False

17. Where organizations need to select intermediaries on a fairly frequent basis, there is a range of
issues that should be examined as part of an appraisal process. Which of the following is not an
example of strategic selection criteria for intermediaries?
a. Market coverage.
b. Stock-holding policy.
c.

Expansion plans.

d. Partnership willingness.
18. There are many key variables that will influence the scale and complexity of the logistics process.
Which of the following are examples of these key variables?
a. Marketing department; environment; warehousing.
b. Transport; inventory; marketing department.
c.

Transport; inventory; warehousing.

d. Transport; marketing department; warehousing.

19. The final phase of the channel design strategy is the selection of specific intermediaries. The
decision tends to become more critical as the intensity of distribution itself becomes which two of
the following?
a. Selective and focused.
b. Selective and exclusive.
c.

Inclusive and selective.

d. Unfocused and exclusive.

20. Distribution channels often require the assistance of others in order for the marketer to reach it is
target market.
a. True
b. False

Answers for Self Assessment Questions

1. (a)

2.(d)

3.(c)

4.(a)

5.(d)

6. (d)

7.(b)

8.(a)

9.(d)

10.(b)

11. (e)

12.(e)

13.(d)

14.(b)

15.(e)

16. (a)

17.(b)

18.(b)

19.(b)

20.(a)

Chapter-9 Communication Strategy

Self Assessment Questions
1. Why would Cadbury's make more use of direct marketing to consumers?
a. Attempt to build relationships with the consumer.
b. Sabre rattling with competitors.
c.

Attempt to deliver a more focused message to the target consumers.

d. All of the above.

2. What are the advantages of using radio advertising?
a. Reinforce print campaign.
b. Reaches target market.
c.

Controlled message.

d. Cheap and effective.

3. What are the disadvantages of advertising in the newspaper?
a. One dimensional message.
b. Difficult to accurately target the specific audience.
c.

All of the above.

d. None of the above.

4. What are the disadvantages of radio advertising?
a. Difficult to target the specific audience.
b. Expensive if using effectively.
c.

Should not be used in isolation.

d. All of the above.

5. Define what is meant by the cognitive stage of consumer advertising.
a. Involves the creating or changing of an attitude.
b. Sowing the seeds of a thought and gaining the consumer's attention.
c.

Stimulating recognition of advertising.

d. Defining recognition.
6. In marketing terms 'noise' is:
a. extraneous non-intelligent clutter which distorts the message.
b. intelligent clutter which distorts messages.
c.

distortion of messages by differences in culture.

d. all of the above.

7. Television advertising that includes a telephone number for ordering is an example of:
a. Direct-response advertising.
b. direct mail.
c.

Telemarketing.

8. What is the main effect that increasing computer power has had on the growth of direct
marketing?
a. It has increased the cost of direct marketing.
b. It has improved database management.
c.

It has created new mechanisms to reach target audiences.

d. It has created new target markets.

9. In creating the communications message, what is the term applied to the process of putting the
intended message or thought into symbolic form?
a. Developing the response.
b. Generating feedback.
c.

Decoding.

d. Encoding.
10. Consumers normally pass through a buyer-readiness process as they reach a decision to
purchase a product or not. Which of the following stages is not typical of the buyer-readiness
process?
a. Preference.
b. Knowledge.
c.

Conviction.

d. Liking.
e. Post-purchase evaluation.
11. What are the unique qualities of advertising?
a. Consumers view advertised products as standard and legitimate.

b. Advertising is expressive, allowing the dramatization of products.

c.

Can reach masses of geographically dispersed buyers at low cost exposure.

d. All of the above.

12. Which of the following are NOT principal marketing communications organizations?
a. Media agencies
b. Customer call centers
c.

Advertising agencies

d. Production companies
13. A full service agency provides both creative and media buying services.
a. True
b. False
14. 'One stop' agencies offer a client:
a. just one type of marketing communication service
b. all marketing communications services
c.

a specialist service and some ancillary services

15. When an agency bids for the account of a client the event is known as a:
a. pitch
b. presentation
c.

interview

d. play
16. Which of the following is not an important criteria when selecting an agency?
a. Dynamics
b. Chemistry
c.

Conflicts of interest

d. Staff credentials
17. A credentials presentation refers to an agency's:
a. campaign requirements
b. previous campaigns
c.

tit with a client's expectations

d. financial status
18. An account executive is responsible for:

a. representing the interests of the client within the agency

b. representing the interests of the agency within the client
c.

representing the interests of the advertising association within the agency

d. representing the interests of the bank within the agency

19. The traditional role of the account planner is:
a. to provide customer insight and to ensure the creative execution is correct
b. to develop creative strategy
c.

to understand the clients target customers

d. to develop media plans

20. Which of the following is not a key element within a creative brief?
a. Target audience
b. Competitor ads
c.

Tone

d. Creative considerations

Answers for Self Assessment Questions

1. (d)

2.(a)

3.(c)

4.(d)

5.(b)

6. (a)

7.(b)

8.(b)

9.(d)

10.(e)

11. (d)

12.(b)

13.(a)

14.(b)

15.(a)

16. (a)

17.(c)

18.(a)

19.(c)

20.(b)

Chapter-10 The Future Of Rural Marketing

Self Assessment Questions
1. At the centre of any marketing process is:
a. Target consumers.
b. The product.
c.

The price charged for the product.

d. The marketing intermediary.

2. Which of the following terms would be most closely associated with the phrase "dividing a
market into distinct groups with distinct needs, characteristics, or behavior that might require
separate products or marketing mixes"?
a. Market positioning.
b. Product differentiation.
c.

Market segmentation.

d. Market targeting.
3. The marketing mix consists of the four Ps: product, price, place, and promotion. In the age of
connectedness, these tools might be more appropriately named the four Cs: Customer solution,
Customer cost, ., and Communication.

a. Convenience.
b. Customer control.
c.

Global considerations.

d. Customer relationships.
4. One of the chief goals of the implementation function in marketing management is to:
a. Take corrective action.
b. Develop strategic plans.
c.

Develop marketing plans.

d. Carry out the plans.

5. The step in a formal marketing plan that includes a market description, a product review, a
review of competition, and a review of distribution is the:
a. Threats and opportunity analysis.
b. Current marketing situation.
c.

Marketing strategy.

d. Objectives and issues.

6 The first step in the marketing control process is best described as being one where the marketer:
a. Evaluates performance.
b. Takes corrective action.
c.

Measures performance.

d. Sets goals.
7. Internal records are an important source of information. Which of the following are not deemed as
internal records?
a. Manufacturing records.
b. Competitor information.
c.

Customer service records.

d. Accounting records.
8. Dunn and Bradstreet is the world's largest research organization that specializes in information
management and marketing intelligence. Which is one of its largest subsidiaries that are focused
upon the retail industry?
a. Info Act Workstation.
b. Key Account Scantrack.
c.

Homescan.

d. Nielsen.

9. There are various types of research designed to obtain different types of information. What type of
research is used to define problems and suggest hypotheses?
a. Secondary research.
b. Primary research.
c.

Descriptive research.

d. Causal research.
10. Which of the following is not a defined use of marketing research?
a. To identify and define marketing opportunities and problems.
b. To improve understanding of the marketing process.
c.

To generate, refine and evaluate marketing actions.

d. To justify previous marketing decisions.

11. Which of the following is not a sales forecasting method?
a. Binomial regression.
b. Leading indicators.
c.

Time lag analysis.

d. Time series analysis.

12. What type of research would be appropriate in the following situation?
Nestl wants to investigate the impact of children on their parents' decisions to buy breakfast foods.
a. Qualitative research.
b. Secondary research.
c.

Focus groups.

d. Mixed methodology.
e. Quantitative research.
13. What type of research would be appropriate in the following situation?
A college or university bookshop wants to get some insights into how students feel about the shop's
merchandise, prices and service.
a. Focus groups.
b. Quantitative research.
c.

Secondary data.

d. Qualitative research.
14. What type of research would be appropriate in the following situation?

L'Oreal wants to determine whether a new line of deodorants for teenagers will be profitable.
a. Primary research.
b. Mixed methodology.
c.

Focus groups.

d. Qualitative research.
15. Why is market research an essential tool for the marketing manager?
a. Develop more appropriate marketing mixes.
b. Monitor progress and diagnose the root causes of marketing problems.
c.

Monitor changing needs and attitudes, etc.

d. All of the above.

16. The Internet is a powerful mechanism for conducting research. However it does have its
drawbacks. Which of the following signify these drawbacks?
a. The possible inclusion of individuals not being targeted, that could skew the results.
b. Eye contact and body language, (two useful research indicators) are excluded from
the analysis.
c.

Lack of information about the population responding to the questionnaire.

d. All of the above.

17. What does quantitative research measures?
a. Feelings and opinions
b. Numbers and figures
c. Numbers and feelings
18. What kind of sampling does this example use?
a. Random sampling
b. Systematic sampling
c. Quota sampling
19. Which of the following is an example of random sampling techniques?
a. Taking the name of every person in a telephone book
b. Generating a list of numbers by picking numbers out of a hat and matching
these numbers to names in the telephone book
c. Taking every tenth or twentieth name from a list of everybody in the
telephone book
20. Geographical boundaries are now irrelevant as far as marketing is concerned.

a. True
b. False

Answers for Self Assessment Questions

1. (a)

2.(c)

3.(a)

4.(d)

5.(b)

6. (d)

7.(b)

8.(d)

9.(c)

10.(d)

11. (a)

12.(a)

13.(a)

14.(a)

15.(d)

16. (d)

17.(b)

18.(c)

19.(b)

20.(a)