Question Paper

Marketing Management (MB221) – October 2005

Section A : Basic Concepts (30 Marks)
! This section consists of questions with serial number 1 - 30.
! Answer all questions.
! Each question carries one mark.

< Answer >

1. Which of the following is a trade sales promotion method aimed specifically at retail outlets?
(a) Trade show (b) Buyback allowance
(c) Merchandise allowance (d) Scan back allowance
(e) Free merchandise.
< Answer >
2. A company in its communication message lays emphasis on the quality, performance and value of its
products. What is the communication objective of the company?
(a) Awareness (b) Knowledge (c) Liking
(d) Preference (e) Conviction.
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3. Which of the following is not a condition necessary for an exchange to take place?
(a) Each party must have something that interests the other
(b) Each party must be in a position to communicate and deliver the product
(c) The parties must involve themselves even if they consider each other undesirable or unacceptable
to deal with
(d) Each party must be free to accept or reject any offer from the other party
(e) At least two parties must be involved.
In which approach of the marketing costs analysis, is the net income calculated by deducting direct and < Answer >
4.
indirect expenses from the gross margin?
(a) Variable costs (b) Full costs (c) Average costs
(d) Sunk costs (e) Marginal costs.
Tools Inc. buys hammers, bolts and other hardware items and sells them to hardware shops at a price < Answer >
5.
that includes a profit. Tools Inc. would be a part of what kind of market?
(a) Reseller market (b) Producer market
(c) Institutional market (d) Target market
(e) Government market.
If Adidas needs to survey retailers attitudes on the availability of product literature in athletic shoe < Answer >
6.
shops and needs the results within four working days, Adidas will probably use a/an_________ survey.
(a) Mail (b) Telephone (c) Mall intercept
(d) Personal interview (e) In-home.
Sony’s communication objective is to achieve 95 percent awareness for its latest camcorder model < Answer >
7.
during the six-month introductory period. Which of the following methods can Sony use to set its
advertising budget?
(a) Affordable method (b) Percentage of sales method
(c) Objective and task method (d) Competitive parity method
(e) Discount method.
The statement that "It costs five times as much to attract a new customer as it does to keep an old < Answer >
8.
customer" means that firms should
(a) Advertise more (b) Build lasting customer relationships
(c) Provide quality products (d) Price their products low
(e) Customize their products.
< Answer >
9. Automobile manufacturers such as Maruti, manufacture different models like Maruti800, WagonR and
Esteem to cater to different segments with different levels of income. This is an example of
(a) Selective specialization (b) Product specialization
(c) Market specialization (d) Full market coverage
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