Marketing Management - Test Papers

 CBSE Test Paper - 01

Chapter - 11 Marketing Management

  1. ________ provides direct and immediate feedback.
    1. Personal Selling
    2. Advertising
    3. Trademark
    4. Packaging
  2. The product concept focus on the following:
    1. Quantity of a product produced
    2. Quality and performance of a product produced
    3. Place where the product is produced
    4. The company which produced the product
    1. iv and i
    2. only ii
    3. i and ii
    4. iii and iv
  3. Under marketing mix which of the following is not a part of Product?
    1. Brand Name
    2. Quality
    3. Design
    4. List price
  4. ________ refers to further packaging components necessary for storage and transportation.
    1. Primary package
    2. None of these
    3. Transportation package
    4. Secondary package
  5. A sachet of a new brand of shampoo attached to a magazine for use by its readers is an example of ________.
    1. sampling
    2. refund
    3. rebate
    4. full finance
  6. State whether each of the following statement is True or False:
    1. The most important element of personal selling is the supply of information which makes personal selling an educative process.
    2. Personal selling is more rigid than other tools of promotion.
    3. Three-level distribution channel enables the manufacturer to cover a wide area of the network while retaining control over the channels.
    4. Channels of distribution smoothen the flow of goods by creating possession, place, and time utility.
  7. Fill in the blanks with suitable words:
    1. Advertising is an ________ form of communication which is paid for by the sponsors.
    2. The main focus of ________ concept is customer needs.
    3. Advertising is ________ as the message can't be adjusted according to the needs of the buyers.
    4. The element of the product mix that describes the product and specifies its contents is called ________.
  8. Match the following:
    (i) Standardisation and grading(a) Competitive advantage
    (ii) Promotion(b) To Conduct SWOT analysis
    (iii) Gathering and Analyzing marketing information(c) To inform and persuade customers
    (iv) Product Designing and Development(d) Classification into different groups
  9. Before buying a thing a customer analyses its cost and the satisfaction that he is to get from it. He will buy the thing only when he feels that its satisfaction will be more than its cost. Seller is to make the thing while keeping in mind this tendency of the buyer. A seller, who does not pay heed to the importance that the buyer gives to the product, certainly lags behind in the competition.
    Which feature of marketing has been highlighted in the above paragraph?
  10. How advertising is Non-personal Presentation?
  11. Physical distribution as a function of marketing. List two major decision areas.
  12. Give anyone advantages of branding to marketers of goods and services.
  13. Distinguish between the product concept and production concept of marketing.
  14. State the meaning of ‘Product Promotion’ function of packaging.
  15. What is meant by Branding? State any three advantages of branding to customers.
  16. Which marketing concept is overlooked in the below case.
    A shoe manufacturing company is using prohibited animal skin to make leather, in order to satisfy some of its customers.
  17. Explain the factors determining the choice of channel of distribution.
  18. What are the factors affecting the determination of the price of a product or service? Explain.

CBSE Test Paper - 01
Chapter - 11 Marketing Management


  1. (a) Personal Selling
    Explanation: This direct and interpersonal communication lets the sender immediately receive and evaluate feedback from the receiver.
  2. (b) only ii
    Explanation: The product concept focuses on the quality and performance of a product produced.
  3. (d) List price
    Explanation: List price is not a part of the product in marketing mix it is the part of price mix.
  4. (c) Transportation package
    Explanation: Transport packaging is very often a local affair and therefore needs to be designed with local conditions and expectations in mind. First and foremost, transport packaging must serve to protect goods in transit.
  5. (a) Sampling
    Explanation: sampling
    1. True
    2. False
      Explanation: False, personal selling is flexible.
    3. False
      Explanation: False, this level enables the manufacturer to cover a wide area of the network but not retaining control over the channels.
    4. True
    1. Impersonal
    2. Marketing
    3. Inflexible
    4. Labelling
  6. (i) - (d), (ii) - (c), (iii) - (b), (iv) - (a)
  7. Customer value
  8. Advertising is a non-personal presentation of information as advertiser and consumer do not come into personal contact.
  9. Two major decisions in this area are:
    1. The decision regarding channels of distribution or the marketing intermediaries to be used.
    2. The physical movement of goods.
  10. Ease in Introduction of New Product: The companies which use their company's name as brand name then they can easily introduce a new product in the market. If a new product is introduced under a well-known brand, it enjoys the goodwill or reputation of that brand and it becomes very easy for such companies to popularize the new product easily. For example, Samsung introducing all new products under the same brand name i.e. Television, Mobile phones, Smartphones, Washing machines and Microwave oven etc.
  11. Difference between the product concept and production concept:
    1. Product Concept: This concept defines that customers cannot be attracted through more supply and low price only. They demand only those products which provide superior quality, performance and features. A business firm must ensure the good quality of the product instead of focusing on quantity and more supply. A business firm must improve the quality of its product time to time by adding new features and appropriate changes in the product.
    2. Production Concept: As per this concept customers prefer those products which are easily available and affordable. A business firm must improve its production and distribution efficiency. A manufacturing unit can maximize its profits by reducing the production cost. Producers must keep in mind that customers do not always prefer cheap and easily available products.
  12. Packaging simplifies the work of sales promotion. Packing material in the house reminds the consumers constantly about the product. In this way, the packaging performs the role of a passive salesman. Consequently, it increases sales.
  13. Branding is the process of giving a name, or a sign or a symbol to a product which helps in identifying and distinguishing it from the competitors’ product.
    The Advantages of branding to customers:
    1. Branding Boosts Awareness and Loyalty
    2. Branding ensures Protection From Competition
    3. Branding Builds Recognition and Loyalty
  14. Societal Marketing Concept for this case.
    Societal Marketing Concept is the marketing concept extended to include the social goals in the need satisfaction process. In other words, the firm must perform marketing in a fashion that societal well being is enhanced. The social, ethical and ecological aspects of marketing should also be considered. The objective of Societal marketing concept is to prevent many social and environmental ills like pollution, plundering of earth’s resources, extinction of many species, drug abuse, etc.
  15. The factors determining the choice of channels of distribution are:
    1. Product-related factors: Industrial products require direct channel or few middlemen, consumer products require a long network of channels, perishable goods require short channel, non-perishable require longer channels.
    2. Company related factors: A financially strong company may adopt direct channel as it involves a lot of investment whereas financial weak company may following direct channel.
    3. Competitive factors: In most of the cases, a manufacturer follows the same policy for the distribution of goods as competitors follow. In the changing global competition, the manufacturers are finding new ways.
    4. Market-related factors: In the case of a small number of buyers, the direct channel is suitable but in case of a large number of buyers, indirect channels are suitable.
    5. Environmental factors: During the depression, shorter channels are adopted whereas during favourable economic conditions, larger channels of distribution may be adopted.
  16. Factors affecting the pricing are:
    1. Product Cost: Cost and price of a product are closely related. The cost set the minimum level or the floor price at which the product can be sold. Cost of the product includes the cost of production/manufacturing, distribution and selling expenses of the product. There are broadly three types of costs:
      Fixed Cost: The costs that remain unchanged and static irrespective of the changes in the output of the product.
      Variable Cost: The costs which vary with output, time and factors.
      Semi-variable Costs: The costs which have no relationship with the time of quantum of production. They vary disproportionately.
      total cost is the sum total of the fixed, variable and semi-variable costs for the specific level of activity. A firm can not survive in the long run unless its total cost covered.
    2. The Utility and Demand: Utility and demand will have a big impact on pricing. Demand is depended upon the customers buying capacity, willingness to pay and their preference etc. So these factors should be kept in mind while fixing the price of a product. The price of a product is affected by the elasticity of demand for the product.
      Elastic Demand: In the case of elastic demand, the firm should fix flexible or lower prices because of the small rise in the price results in a decrease in the quantity demanded by a large amount.
      Inelastic Demand: High prices may be fixed by the firm in this case because a rise in the price does not affect quantity demanded by the buyer.
    3. The extent of Competition in the Market: Competition in the market is a crucial factor in price determination. Before fixing the price of the product, a business firm must collect the information about what price the competitors are charging for the similar products and what are the possibilities in the future for raising or lowering the prices. If competition is high than the firm can fix a lower price but if it is low than the firm can fix a high price also.
    4. Government and Legal Regulations: Government can intervene and regulate the price of commodities to protect the interest of the public against unfair practices. The government can declare a product as an essential product and regulate its price. For example, a drug manufacturing firm can charge a higher price of its product from the customer in the absence of any competitor. A government can declare such drug as an essential commodity and regulate its price.
    5. Pricing Objectives: In the short run, if a firm wants to maximize its profits, it would charge a higher price for its products. But if the firm is interested in maximizing its total profits in the long run, it will charge a lower price for its product so that firm can capture a larger share of the market to earn more profits in the long run by increasing its sales.
      The pricing objectives of a firm also include:
      1. Obtaining Market Share Leadership: In this case, a firm has to fix a lower price so that a number of people should attract for its products in the market.
      2. Surviving in a Competitive Market: If the competition level is high in the market than the firm has to charge a lower price as well as provide discount also to attain a market share.
      3. Attaining Product Quality Leadership; in this case, the firm has to charge a higher price for providing high-quality products because it incurred heavy expenditure on research and development of the products.
      4. Profit maximization: If the firm wants to maximize profit in the short run than it has to charge a higher price but it will not continue in the long run.
    6. Marketing Methods Used: While fixing the price of a product following elements of marketing such be kept in mind. The uniqueness of any of these elements gives the company competitive freedom of fixing the price of its product. For example, if a company providing free home delivery than its price are fixed high than others
      1. Cost of the distribution system
      2. Salaries or commission payable to salesmen
      3. Advertising cost
      4. Sales promotion cost
      5. Packaging cost
      6. Customer service provided etc.