Question 1

Which of the following statements about an effective value proposition is/are correct?
A) It should differentiate a brand from its competitors.
B) It will need to be changed periodically.
C) It is likely to be copied by competitors.
D) It should answer the question, "Why should a customer buy your brand rather than competitors' brands?"
E) All of the above are correct.

Accepted Answer

A strong value proposition should differentiate a brand from its competitors (A), and it should answer the question of why a customer should choose this brand over other options (D). Additionally, a value proposition may need to be updated periodically to stay relevant (B), and it is likely that competitors will attempt to copy successful value propositions (C). Therefore, all of the statements are correct.

Question 2

Contemporary marketing is best described as which of the following?
A) meeting customer needs
B) communicating through advertising and promotion
C) selling goods and services to the most profitable customer segments
D) delivering customer value and managing profitable customer relationships
E) none of the above

Accepted Answer

Contemporary marketing goes beyond just selling goods and services, and also involves creating customer value and managing profitable customer relationships. This approach focuses on the long-term satisfaction of customers, rather than just short-term profits. Option A is one aspect of contemporary marketing, but not the whole picture. Option B is a tactic within marketing, but not a complete definition. Option C is focused solely on profitability and does not consider customer satisfaction.

Question 3

The marketing mix, or the set of marketing tools that are used to implement the marketing strategy, are traditionally seen as consisting of 4 Ps. Which of the following is NOT one of the traditional 4 Ps?
A) Promotion
B) Product
C) Price
D) Production
E) Place

Accepted Answer

The traditional 4 Ps of the marketing mix are Product, Price, Place, and Promotion. Production is not a part of the traditional 4 Ps.

Question 4

Which of the following is an example of a product?
A) a carton of eggs
B) a beauty treatment
C) a seminar on study skills
D) a screenplay based on the life of Apple's Steve Jobs
E) all of the above

Accepted Answer

A product can be tangible or intangible. A carton of eggs is a tangible product, a beauty treatment and a seminar on study skills are examples of service-based products (intangible), and a screenplay, although intellectual property, is considered a product in the context of creative and media industries.

Question 5

Select the words that BEST complete the following sentence. Traditional marketing science and practice have focused on attracting new customers and making a sale. Today, however, the emphasis is moving beyond attracting new customers. Today companies are going all out to________ current customers and build lasting customer ________.
A) identify; brand meanings
B) locate; value
C) identify, retention
D) attract, value
E) retain; relationships

Accepted Answer

The sentence states that companies are now focused on "building lasting customer" which suggests a focus on retaining customers rather than attracting new ones. The words "retain" and "relationships" in choice E are the best fit for completing the sentence.

Question 6

The process of dividing the total potential market into segments or groups of customers is known as:
A) market analysis.
B) target marketing.
C) market segmentation.
D) market positioning.
E) market profiling.

Accepted Answer

Market segmentation refers to dividing the total potential market into segments or groups of customers based on characteristics such as age, gender, income, and interests. This allows businesses to better target their marketing efforts to specific groups and tailor their products or services to meet their needs and preferences.

Question 7

In difficult economic conditions, characterised by decreased discretionary spending, sellers are BEST advised to adopt which of the following strategies?
A) increase advertising expenditures
B) emphasise value
C) slash prices
D) engage in deep discounting
E) all of the above

Accepted Answer

During tough economic conditions, consumers are more cautious about their spending and tend to prioritize value over other factors such as brand or convenience. Therefore, in order to stay competitive and attract buyers, sellers should focus on emphasizing the value of their products or services rather than simply lowering prices or engaging in deep discounting. By highlighting the key benefits consumers can expect to receive from their purchase, sellers can differentiate themselves from their competitors and demonstrate why their offerings are worth the investment. Additionally, increasing advertising expenditures may not be feasible for sellers facing financial challenges, as it can be costly and may not directly translate to increased sales.

Question 8

The potential market for a product or service consists of which of the following?
A) the total population of a defined geographic region
B) current customers and latent customers
C) current customers and potential customers
D) potential customers and lapsed customers
E) none of the above

Accepted Answer

The potential market consists of current customers and potential customers. It is important to consider both groups when determining the market size and potential for growth. The total population of a region (A) is too broad and does not necessarily represent those who would actually be interested in the product or service. Latent customers (B) are those who have not yet recognized their need for the product or service, and lapsed customers (D) are those who were previously customers but have since stopped using the product or service. While these groups may provide opportunities for targeting and conversion, they are not part of the potential market.

Question 9

An Australian university is attempting to estimate the market size for its various undergraduate award programmes for the following academic year. Which of the following groups should it consider as being in the market for degree programmes?
A) international students who have completed the equivalent of Year 12
B) students currently studying at private colleges, including English language colleges or those undertaking certificate or diploma programmes
C) undergraduates currently studying at other Australian universities
D) domestic school leavers (i.e. students who have completed Year 12 or its equivalent)
E) all of the above

Accepted Answer

All of the groups listed should be considered in the market for undergraduate degree programmes. International students who have completed the equivalent of Year 12 may be looking to study at an Australian university, students currently studying at private colleges may wish to continue their studies at a university level, undergraduates at other Australian universities may consider transferring or pursuing second degrees, and domestic school leavers are a traditional target market for undergraduate degree programmes.

Question 10

When Frank buys his own house, he would like to have a home theatre system and a spa bath. He plans to save enough money in the next three years so that he can purchase his dream home with these features. Frank's desire for the home theatre and spa bath is an example of a(n):
A) wish list.
B) need.
C) exchange.
D) demand.
E) want.

Accepted Answer

Frank's desire for a home theatre system and a spa bath is an example of a want, which refers to something that is not necessary for survival but is desirable or preferred. A need, on the other hand, refers to something that is essential for survival, such as food, water, and shelter. A wish list is a list of desired items or experiences, which can include both wants and needs. An exchange refers to the act of giving or receiving something in return for something else, while demand refers to the willingness and ability of consumers to purchase a particular product or service at a specific price.

Question 11

Satisfied consumers are more likely to:
A) engage in repeat purchasing.
B) become loyal customers.
C) make positive brand recommendations.
D) all of the above

Accepted Answer

All of the above options are correct. Satisfied consumers are more likely to engage in repeat purchasing, become loyal customers, and make positive brand recommendations. This leads to increased sales, brand reputation, and customer loyalty, which are all important for the long-term success of a business.

Question 12

At the heart of any marketing programme is the firm's ________, its tangible offering to the market.
A) value
B) strategy
C) product
D) people
E) brand

Accepted Answer

The product is the tangible offering that a firm presents to the market as part of its marketing programme. While value, strategy, people, and brand can all be important components of the marketing programme, they are not the core offering that the firm is providing to its customers.

Question 13

De- marketing is best described as which of the following?
A) a practise whereby some organisations do not engage in any form of paid advertising
B) the practise of using marketing principles to temporarily or permanently reduce demand for a product or service
C) an organisation that does not engage in marketing activities
D) a personal philosophical position or ideology that rejects marketing and its practises
E) none of the above

Accepted Answer

De-marketing is a marketing strategy that involves using marketing principles to reduce demand for a product or service temporarily or permanently. This is often done to balance supply and demand, reduce overcrowding or congestion, or manage scarce resources. De-marketing can be achieved through various tactics, such as increasing prices, limiting distribution, or highlighting negative aspects of the product or service.

Question 14

A market is defined as:
A) the set of actual buyers.
B) a demographic segment of the population.
C) the set of potential buyers.
D) a target group of consumers with similar purchasing habits.
E) the set of actual and potential buyers.

Accepted Answer

A market includes both actual buyers and potential buyers who may be interested in purchasing a particular product or service. Therefore, choice E, which includes both actual and potential buyers, is the best option. Choices A, B, C, and D are incorrect because they do not capture the full definition of a market.

Question 15

A local council is currently engaged in an intensive promotional and educational programme designed to encourage the local community to use less water. The Council is engaged in which marketing activity?
A) behavioural economics
B) not- for- profit marketing
C) de- marketing
D) social marketing
E) none of the above

Accepted Answer

The answer of A local council is currently engaged in...

Question 16

Which of the following statements BEST describes the process of marketing management?
A) The art and science of choosing target markets and building profitable relationships with them.
B) It focuses solely on attaining an organisation's sales goals in an efficient manner.
C) It is primarily concerned with the systematic gathering, recording, and analysis of data about target markets.
D) It focuses mostly on monitoring the profitability of a company's products and services.
E) It is defined as the field that deals with planning and managing a business at the highest level of profitability.

Accepted Answer

Marketing management involves the art and science of identifying target markets and building profitable relationships with them through various marketing strategies. It encompasses everything from market research to product development, pricing, promotion, and distribution. It is a holistic approach to managing a company's marketing efforts to meet business objectives.

Question 17

Anything that can be offered to a market for attention, acquisition, use or consumption is best described as a(n):
A) product or service.
B) exchange satisfying object.
C) desire.
D) need.
E) want.

Accepted Answer

The definition given perfectly describes a product or service that can be offered and acquired by customers.

Question 18

Vesna has just purchased a new iPhone. On the way home, Vesna is sitting on the train, looking at her purchase, investigating its functionality and thinking about how she will use it. She is also reflecting on the amount of time she spent travelling into town, shopping around, comparing prices and generally learning more about the product prior to purchase. Vesna is engaged in assessing:
A) customer sacrifices.
B) relationships.
C) lifetime value.
D) satisfaction.
E) customer value.

Accepted Answer

Vesna is assessing customer value, which involves evaluating what she gets (the benefits of the product, its functionality, and how it meets her needs) against what she has given up (time and effort spent in researching and purchasing the product). This assessment includes considering both the benefits of the product and the sacrifices made to obtain it.

Question 19

Price- cutting, as a means of delivering superior value, rarely delivers long-term value. Which of the following is NOT one of the disadvantages normally associated with price- cutting?
A) Price- cuts are easily imitated by competitors.
B) Price- cuts are too difficult to implement.
C) Price- cuts in the wrong places can damage customer relationships.
D) Price- cuts may not be sustainable in the long term.
E) Price- cuts can erode brand image.

Accepted Answer

The statement mentions that price-cutting rarely delivers long-term value and lists several disadvantages associated with it, such as the ease of imitation, potential damage to customer relationships, and erosion of brand image. However, it does not suggest that price-cuts are too difficult to implement, making choice B the correct answer.

Question 20

Which of the following types of organisations is NOT likely to practise marketing?
A) government departments
B) educational institutions
C) not- for- profit organisations
D) all of the above
E) none of the above (i.e. A- C are likely to practise marketing)

Accepted Answer

The answer of Which of the following types of organisations...

Quiz 1: Marketing: Creating Superior Customer Value

Which of the following statements about an effective value proposition is/are correct?

Contemporary marketing is best described as which of the following?

The marketing mix, or the set of marketing tools that are used to implement the marketing strategy, are traditionally seen as consisting of 4 Ps. Which of the following is NOT one of the traditional 4 Ps?

Which of the following is an example of a product?

The process of dividing the total potential market into segments or groups of customers is known as:

In difficult economic conditions, characterised by decreased discretionary spending, sellers are BEST advised to adopt which of the following strategies?

The potential market for a product or service consists of which of the following?

An Australian university is attempting to estimate the market size for its various undergraduate award programmes for the following academic year. Which of the following groups should it consider as being in the market for degree programmes?

When Frank buys his own house, he would like to have a home theatre system and a spa bath. He plans to save enough money in the next three years so that he can purchase his dream home with these features. Frank's desire for the home theatre and spa bath is an example of a(n) :

Satisfied consumers are more likely to:

At the heart of any marketing programme is the firm's ________, its tangible offering to the market.

De- marketing is best described as which of the following?

A market is defined as:

A local council is currently engaged in an intensive promotional and educational programme designed to encourage the local community to use less water. The Council is engaged in which marketing activity?

Which of the following statements BEST describes the process of marketing management?

Anything that can be offered to a market for attention, acquisition, use or consumption is best described as a(n) :

Price- cutting, as a means of delivering superior value, rarely delivers long-term value. Which of the following is NOT one of the disadvantages normally associated with price- cutting?

Which of the following types of organisations is NOT likely to practise marketing?