1. What is the term used to describe the stages a product goes through?
A. Marketing mix
B. Marketing planning process
C. Product life cycle Correct
D. Product width
Explanation
The product life cycle (PLC) describes the stages a product goes through: introduction, growth, maturity, and decline. Marketing mix refers to the 4 Ps (product, price, place, promotion), marketing planning process is the overall strategy development, and product width refers to the range of product lines.
2. What is an example of a controllable element in marketing?
A. Obtain government funding
B. Address customers needs Correct
C. Minimize competition
D. Increase global popularity
Explanation
Controllable elements are within a company's control, such as addressing customer needs through product design, pricing, or promotion. Obtaining government funding, minimizing competition, and increasing global popularity are external and less controllable.
3. The marketing manager of a breakfast cereal issues coupons to encourage purchase of the cereal. Which element of the marketing mix do the coupons represent?
A. Strategy
B. Promotion Correct
C. Distribution
D. Price
Explanation
Coupons are a promotional tool used to incentivize purchases, falling under the promotion element of the marketing mix (product, price, place, promotion). Strategy is broader, distribution involves channels, and price is the cost to the consumer.
4. A new manufacturer of running shoes plans to use penetration marketing to enter the crowded shoe market by using both retail stores and e-commerce methods. Why does the manufacturer use penetration pricing?
A. To provide direct distribution channels
B. To increase profit skimming
C. To use omnichannel communication
D. To gain market share Correct
Explanation
Penetration pricing involves setting a low initial price to attract customers and gain market share in a competitive market. It’s not about distribution channels, profit skimming (high initial prices), or omnichannel communication.
5. A donut shop owner decides to use radio to advertise weekly specials. Which element of the marketing mix is the donut shop using?
A. Product
B. Place
C. Price
D. Promotion Correct
Explanation
Radio advertising is a promotional activity, part of the promotion element of the marketing mix, which includes advertising, sales promotions, and public relations. Product, place, and price refer to the item itself, distribution, and cost, respectively.