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Maharashtra HSC Bifocal Marketing and Salesmanship study materials
Maharashtra HSC Bifocal Marketing and Salesmanship study resources

Maharashtra HSC Bifocal Marketing and Salesmanship practice questions

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Question 1Introduction to Marketing and Salesmanship

In the Maharashtra HSC Bifocal Marketing and Salesmanship syllabus, which activity is best described as marketing rather than selling?

  1. Convincing a walk-in customer to buy a smartphone today
  2. Persuading a shopkeeper to stock a new biscuit brand
  3. Closing a deal by offering a limited-period discount
  4. Identifying customer needs and designing a suitable product offer Correct answer.

Explanation

Marketing begins with the customer and works backwards: it studies needs, then designs the product, price, distribution and promotion to satisfy them. Selling is the narrower activity of persuading a buyer to part with money for goods already produced. Identifying needs and designing an offer is therefore the marketing activity.

Question 2Introduction to Marketing and Salesmanship

A firm states its aim as 'we will earn profit by satisfying customers better than rivals do'. Which concept does this statement reflect?

  1. The product concept
  2. The production concept
  3. The marketing concept Correct answer.
  4. The selling concept

Explanation

The marketing concept places customer satisfaction at the centre and treats profit as the reward for satisfying buyers better than competitors. Production and product concepts focus inward on output and quality, while the selling concept pushes existing goods aggressively. Only the marketing concept ties profit directly to superior customer satisfaction.

Question 3Introduction to Marketing and Salesmanship

Which of the following is a need rather than a want in marketing terminology?

  1. A customer's preference for a branded coffee at a cafe
  2. A family's requirement for clean drinking water Correct answer.
  3. A buyer's wish for a phone with a higher camera resolution
  4. A student's desire for the latest limited-edition sneakers

Explanation

A need is a basic requirement whose non-fulfilment causes discomfort, such as water, food or shelter. Wants are culturally shaped desires for particular ways of satisfying those needs, like branded sneakers or a higher-resolution camera. Clean drinking water is therefore the need.

Question 4Introduction to Marketing and Salesmanship

A trader has 500 units of a product, buyers who are willing to pay for it, and the ability to pay. Which condition completes the definition of demand?

  1. The product must be a luxury item
  2. The seller must offer a discount
  3. Buyers must be willing to buy only at the lowest price
  4. Buyers must have the willingness and ability to pay at a given price and time Correct answer.

Explanation

Demand in marketing means desire backed by purchasing power and willingness to pay, at a stated price and within a stated period. Mere desire or mere stock does not create demand. The missing element is willingness plus ability to pay at a given price and time.

Question 5Introduction to Marketing and Salesmanship

Which element of the marketing mix deals with making the product available at the right place and time?

  1. Promotion
  2. Place Correct answer.
  3. Product
  4. Price

Explanation

The four Ps are product, price, place and promotion. Place, also called distribution, covers channels, intermediaries, transport and storage that make goods available where and when buyers want them. Availability at the right time and location is therefore a place decision.

Question 6Introduction to Marketing and Salesmanship

A company appoints wholesalers and retailers to move its soaps from the factory to village shops. Which marketing function is being performed?

  1. Physical distribution and channel management Correct answer.
  2. Risk bearing
  3. Financing
  4. Grading and standardisation

Explanation

Moving goods through intermediaries from producer to consumer is the distribution function, combining channel management with transport and storage. Grading sorts products by quality, financing supplies funds, and risk bearing covers losses from price or damage. Using wholesalers and retailers is therefore distribution.

Question 7Introduction to Marketing and Salesmanship

Which is the most accurate description of personal selling?

  1. Any publicity obtained without payment from the seller
  2. Oral, face-to-face persuasion between a salesperson and a prospect Correct answer.
  3. Setting prices after studying competitor rates
  4. A paid, non-personal message delivered through mass media

Explanation

Personal selling is direct, oral communication in which a salesperson interacts with a prospect, answers objections and seeks a commitment. It is personal and two-way, unlike advertising, which is non-personal and paid. Publicity is unpaid and price setting is a separate pricing activity.

Question 8Introduction to Marketing and Salesmanship

A salesperson notes that a customer hesitates because the price seems high. Which stage of the selling process is the salesperson entering?

  1. Handling objections Correct answer.
  2. Follow-up
  3. Prospecting
  4. Pre-approach

Explanation

When a prospect raises a doubt or reason for not buying, the salesperson must clarify and reassure, which is the objection-handling stage. Prospecting and pre-approach occur before meeting the buyer, and follow-up comes after the sale. Price hesitation during the presentation belongs to objection handling.

Question 9Introduction to Marketing and Salesmanship

A firm runs a newspaper advertisement for its fans and also posts a salesperson at a mall kiosk. Which statement correctly distinguishes the two efforts?

  1. Both are personal selling because both reach buyers
  2. The advertisement is non-personal promotion, while the kiosk salesperson is personal selling Correct answer.
  3. The kiosk salesperson is advertising because the firm pays for the space
  4. The advertisement is personal selling because it names the product

Explanation

Advertising is a paid, non-personal message aimed at a mass audience with no direct interaction. Personal selling requires a salesperson to interact with a prospect, answer questions and close a sale, as at the kiosk. The distinction rests on personal interaction, not on payment or product naming.

Question 10Introduction to Marketing and Salesmanship

A company sells industrial pumps directly to factories through its own engineers, who visit plants and negotiate contracts. Which channel decision is illustrated?

  1. A zero-level channel Correct answer.
  2. A two-level channel using a wholesaler
  3. A one-level channel using a retailer
  4. A three-level channel using an agent and a wholesaler

Explanation

A zero-level or direct channel has no intermediary between producer and user; the producer's own staff sell straight to the buyer. Because the engineers deal directly with factories, no middleman exists. Any channel with a retailer, wholesaler or agent would add at least one level.

Question 11Introduction to Marketing and Salesmanship

A retailer sells rice at Rs 40 per kg when the market rate is Rs 45, attracting many buyers. Which factor of demand is most directly illustrated?

  1. Rise in consumer income
  2. Expectation of a future price rise
  3. Change in tastes and fashion
  4. Change in the price of the product itself Correct answer.

Explanation

A movement along the demand curve caused by the product's own price is the price factor of demand. Lowering the price from the market rate increases quantity demanded when other things remain equal. Income, tastes and expectations shift demand independently of the current price.

Question 12Introduction to Marketing and Salesmanship

Which combination correctly pairs a marketing function with its purpose?

  1. Branding - moving goods from factory to warehouse
  2. Storage - arranging funds for the business
  3. Grading - creating time utility by holding goods
  4. Transportation - creating place utility by moving goods Correct answer.

Explanation

Transportation moves goods from where they are produced to where they are needed, creating place utility. Storage creates time utility, grading sorts by quality, and branding identifies and differentiates a product. Only the transportation pairing is correct.

Question 13Introduction to Marketing and Salesmanship

A firm claims that its detergent 'washes whitest'. Under consumer protection law in India, this claim is best treated as which element of marketing communication?

  1. A promotional claim that must be truthful and substantiated Correct answer.
  2. A guarantee enforceable in every case
  3. A statutory warning required on all packets
  4. A price term of the sale contract

Explanation

Advertisements and sales claims are promotional messages, and Indian consumer law requires them to be truthful and capable of substantiation. A superlative claim is not automatically a legal guarantee, nor is it a statutory warning or a price term. The firm must be able to prove what it asserts.

Question 14Introduction to Marketing and Salesmanship

A salesperson prepares a list of likely buyers, gathers information about their needs and plans the opening talk before meeting them. Which two stages of the selling process are involved?

  1. Prospecting and pre-approach Correct answer.
  2. Approach and presentation
  3. Demonstration and closing
  4. Closing and follow-up

Explanation

Prospecting identifies potential buyers, and pre-approach gathers information and plans the meeting before contact. Approach is the actual first meeting, presentation is the sales talk, and closing seeks the order. Preparing a list and planning the opening therefore belong to prospecting and pre-approach.

Question 15Introduction to Marketing and Salesmanship

A marketer divides buyers into groups of working women aged 25–40 in Pune who buy ready-to-cook food. Which marketing activity is this?

  1. Sales forecasting
  2. Product grading
  3. Market segmentation Correct answer.
  4. Channel conflict resolution

Explanation

Dividing a heterogeneous market into homogeneous groups with shared needs is segmentation. Grading sorts products by quality, forecasting estimates future sales, and channel conflict resolution settles disputes among intermediaries. Grouping buyers by age, gender and location is clearly segmentation.

Question 16Introduction to Marketing and Salesmanship

A company introduces a low-priced variant of a premium soap to reach rural buyers without lowering the premium brand's image. Which reason for branding does this best illustrate?

  1. Branding supports market segmentation and price positioning Correct answer.
  2. Branding removes the need for advertising
  3. Branding guarantees the product cannot fail
  4. Branding helps in product differentiation only

Explanation

Brands allow a firm to serve different segments with distinct offers and price points while protecting the image of the parent brand. A low-priced variant under a separate identity reaches price-sensitive buyers without diluting the premium name. Branding supports segmentation and positioning; it neither removes promotion nor guarantees success.

Question 17Introduction to Marketing and Salesmanship

Which statement about the difference between marketing and selling is correct?

  1. Selling is a part of marketing that focuses on transferring goods to buyers Correct answer.
  2. Marketing excludes any study of customer needs
  3. Marketing and selling are identical terms with no practical difference
  4. Marketing ends with the sale, while selling begins after it

Explanation

Marketing is the wider process covering research, product design, pricing, distribution, promotion and after-sales service, and selling is one component of it. Selling concentrates on persuading buyers to purchase. Marketing therefore includes selling but extends beyond it, and it begins with customer needs.

Question 18Introduction to Marketing and Salesmanship

A firm's sales fall because a competitor launches a cheaper substitute. Which response best reflects the marketing concept?

  1. Increase the sales force and push existing stock harder
  2. Reduce price without changing anything else
  3. Study why buyers prefer the substitute and modify the offer accordingly Correct answer.
  4. Ignore the rival and wait for demand to recover

Explanation

The marketing concept requires the firm to understand buyer needs and adapt the offer rather than merely push existing output. Investigating why the substitute appeals allows product, price or promotion to be adjusted to restore value. Simply pushing stock or cutting price ignores the underlying reason for the shift.

Question 19Introduction to Marketing and Salesmanship

In the marketing mix, a firm decides to sell through exclusive showrooms, offer a two-year warranty and use celebrity endorsements. Which elements are involved?

  1. Product, price and promotion
  2. Price, place and product
  3. Promotion, price and place
  4. Place, product and promotion Correct answer.

Explanation

Exclusive showrooms are a distribution or place decision, the warranty is part of the product offer, and celebrity endorsement is promotion. No pricing decision is described. The three elements involved are therefore place, product and promotion.

Question 20Introduction to Marketing and Salesmanship

A firm sells seeds to farmers. It must convince buyers that the germination rate claimed is genuine before they will purchase. Which marketing function most directly addresses this problem?

  1. Grading and standardisation Correct answer.
  2. Financing
  3. Transportation
  4. Storage

Explanation

Grading and standardisation set quality standards and sort output into grades, which lets buyers rely on stated quality without inspecting every lot. For seeds, a standardised germination grade reassures farmers about performance. Financing, transport and storage do not certify quality.

Question 21Introduction to Marketing and Salesmanship

A salesperson says: 'Our machine costs more, but it saves Rs 2 lakh a year in power bills.' Which objection is being pre-empted, and with what technique?

  1. The source objection, using a customer reference
  2. The need objection, using a discount offer
  3. The price objection, using a cost-benefit comparison Correct answer.
  4. The postponement objection, using a free trial

Explanation

A higher price relative to rivals creates a price objection, and the salesperson answers it by converting price into an investment with measurable savings. This cost-benefit or total-cost comparison shows the buyer that the higher outlay is recovered. Discounts, trials and references address different objections.

Question 22Introduction to Marketing and Salesmanship

A company's direct channel yields higher margins per unit but reaches few buyers, while an indirect channel reaches many buyers at lower margin per unit. Which reasoning best guides the choice?

  1. Always choose the direct channel because margins are higher
  2. Compare total contribution after channel costs against the firm's coverage and control objectives Correct answer.
  3. Choose the channel that requires the fewest intermediaries
  4. Always choose the indirect channel because reach is larger

Explanation

Channel choice is a trade-off among coverage, cost, control and contribution, so the firm should compare total contribution after channel costs with its objectives. High unit margin may be offset by low volume, and wide reach may be offset by intermediary margins. Neither extreme nor the mere count of intermediaries decides the matter.

Question 23Introduction to Marketing and Salesmanship

A firm claims its product is 'environment friendly' without any supporting test. Which criticism applies most precisely under marketing ethics?

  1. The claim is a statutory warning
  2. The claim is misleading unless it can be substantiated Correct answer.
  3. The claim is valid because it is not a price statement
  4. The claim is acceptable because it attracts buyers

Explanation

Ethical marketing requires that claims be truthful and capable of substantiation, especially environmental claims that influence purchase decisions. An unproven green claim misleads buyers and may attract regulatory action. Attracting buyers or avoiding a price statement does not make a claim acceptable, and a warning is a different kind of disclosure.

Question 24Introduction to Marketing and Salesmanship

A firm finds that rural buyers want small packs, while urban buyers prefer large packs of the same product. Which conclusion follows for its marketing mix?

  1. Pack size should vary by segment while the core product stays the same Correct answer.
  2. Distribution should be limited to urban areas
  3. A single uniform pack for all buyers is optimal
  4. Price must be identical for both pack sizes

Explanation

Segmentation implies adapting the offer to each group's needs, so pack size can differ by segment while the underlying product remains the same. This is a product decision driven by buyer behaviour. Uniform packs, identical prices or urban-only distribution would ignore the rural segment's stated preference.

Question 25Marketing Environment and Consumer Behaviour

A company studies how changing income levels, lifestyles and cultural values affect the demand for its products. This study belongs to which component of the marketing environment?

  1. The political-legal environment
  2. The technological environment
  3. The natural environment
  4. The socio-cultural environment Correct answer.

Explanation

The socio-cultural environment covers demographic patterns, income distribution, lifestyles, beliefs, values and customs that shape what buyers want and how they buy. Income levels and cultural values are its classic indicators. Technology, nature and law form separate components of the macro environment.

Question 26Marketing Environment and Consumer Behaviour

A rise in the number of working women and smaller nuclear families in urban India has increased demand for ready-to-cook food. Which element of the marketing environment does this change illustrate?

  1. The legal environment
  2. The competitive environment
  3. The physical distribution environment
  4. The demographic environment Correct answer.

Explanation

Demographics describe the size, structure and composition of the population, including gender roles, family size and urbanisation. These shifts alter household needs and create demand for convenience products. Competition, logistics and law describe other separate forces.

Question 27Marketing Environment and Consumer Behaviour

Which of the following is a component of the internal marketing environment of a firm?

  1. The entry of a new foreign competitor
  2. The buying power of its customers
  3. The rate of inflation in the economy
  4. Its organisational structure and human resources Correct answer.

Explanation

The internal environment consists of controllable factors inside the firm such as structure, resources, staff, culture and functional departments. Inflation, customer purchasing power and new competitors are external forces the firm cannot control.

Question 28Marketing Environment and Consumer Behaviour

According to Maslow's hierarchy, a person who joins a housing society mainly to gain friendship and a sense of belonging is driven by which need?

  1. Social needs Correct answer.
  2. Esteem needs
  3. Physiological needs
  4. Safety needs

Explanation

Social needs cover belonging, affection, friendship and acceptance by groups. Joining a community for friendship directly satisfies this level. Physiological needs concern basics like food and water, safety concerns security, and esteem concerns status and recognition.

Question 29Marketing Environment and Consumer Behaviour

A buyer who is highly involved in a purchase and perceives significant differences among brands will most likely follow which buying behaviour?

  1. Impulse buying behaviour
  2. Variety-seeking buying behaviour
  3. Habitual buying behaviour
  4. Complex buying behaviour Correct answer.

Explanation

Complex buying behaviour arises when involvement is high and brand differences are large, as with cars or expensive durables. The buyer gathers information and evaluates alternatives carefully. Habitual and variety-seeking behaviour apply to low-involvement purchases, and impulse buying lacks deliberate evaluation.

Question 30Marketing Environment and Consumer Behaviour

In the buyer decision process, a consumer shortlists three brands of a smartphone and compares their features, price and reviews. Which stage is this?

  1. Information search
  2. Evaluation of alternatives Correct answer.
  3. Need recognition
  4. Post-purchase behaviour

Explanation

Evaluation of alternatives is the stage where the buyer compares shortlisted options on chosen criteria such as features, price and reviews. Information search precedes it and only gathers data. Need recognition comes first, and post-purchase behaviour follows the purchase.

Question 31Marketing Environment and Consumer Behaviour

A firm selling industrial machinery buys raw material from a supplier it has used reliably for years, without inviting fresh quotations. This purchase is best described as:

  1. A modified rebuy
  2. A straight rebuy Correct answer.
  3. A new task purchase
  4. A systems purchase

Explanation

A straight rebuy is a routine repeat purchase from an approved supplier without fresh evaluation. A modified rebuy involves changing specifications or suppliers, and a new task involves buying for the first time. A systems purchase means buying a complete package of goods and services.

Question 32Marketing Environment and Consumer Behaviour

Which of the following best describes a reference group in consumer behaviour?

  1. A group whose norms and values a person uses as a frame of comparison for beliefs and purchases Correct answer.
  2. A statistical sample used in market research
  3. A government body that fixes maximum retail prices
  4. A firm's own sales force that advises customers

Explanation

A reference group is any group, such as family, peers or celebrities, that a consumer compares themselves with and whose standards influence attitudes and buying. It is a social influence, not a regulator, a sales team or a research sample.

Question 33Marketing Environment and Consumer Behaviour

A toothpaste advertisement shows a dentist recommending a brand. Which source of information is the consumer relying on?

  1. A public source
  2. An experimental source
  3. A commercial source Correct answer.
  4. An experiential source

Explanation

Commercial sources are marketing-controlled, such as advertisements, salespeople and displays. A dentist appearing in an advertisement is still a commercial message paid for by the marketer. Public sources are neutral bodies like consumer forums, while experiential sources come from handling or trying the product.

Question 34Marketing Environment and Consumer Behaviour

After buying an expensive laptop, a student worries that a rival model may have been better. This discomfort is called:

  1. Stimulus generalisation
  2. Perceptual blocking
  3. Cognitive dissonance Correct answer.
  4. Selective distortion

Explanation

Cognitive dissonance is the post-purchase doubt or discomfort felt when alternatives were close and the decision was costly. Marketers reduce it through reassurance, warranties and follow-up contact. Selective distortion and generalisation are perceptual processes, not post-purchase doubt.

Question 35Marketing Environment and Consumer Behaviour

A consumer notices only advertisements for the car brand she already owns and ignores others. This tendency illustrates:

  1. Selective exposure
  2. Selective retention
  3. Selective attention Correct answer.
  4. Stimulus discrimination

Explanation

Selective attention is the tendency to notice stimuli that match current needs and interests while ignoring the rest. Here the consumer's existing ownership makes her notice that brand. Retention concerns remembering, exposure concerns which media are chosen, and discrimination concerns telling similar stimuli apart.

Question 36Marketing Environment and Consumer Behaviour

A company launches a premium watch line under a name already associated with its budget pens. Buyers transfer the existing favourable image to the new line. This is an example of:

  1. Brand licensing
  2. Brand extension Correct answer.
  3. Co-branding
  4. Brand dilution

Explanation

Brand extension uses an established brand name to enter a new product category, letting buyers carry over existing associations. Brand dilution is the risk of weakening the parent brand, co-branding pairs two brands, and licensing lets another firm use the brand for a fee.

Question 37Marketing Environment and Consumer Behaviour

A firm collects data on customers' age, occupation and income from its sales records. This data is best classified as:

  1. Experimental data
  2. Observational data
  3. Primary data
  4. Secondary data Correct answer.

Explanation

Secondary data is information already collected by someone else or for another purpose, such as internal sales records. Primary data is gathered fresh for the current study through surveys, observation or experiments. Records already in the firm's files are therefore secondary.

Question 38Marketing Environment and Consumer Behaviour

Which of the following is an advantage of primary data over secondary data in marketing research?

  1. It is collected for the specific problem and so is more relevant Correct answer.
  2. It is always cheaper to collect
  3. It is available instantly from published sources
  4. It requires no research design

Explanation

Primary data is gathered for the exact research question, so it fits the problem and is current. Its drawback is higher cost and time. Secondary data is quicker and cheaper but may not match the specific need.

Question 39Marketing Environment and Consumer Behaviour

A marketer divides the market into groups of buyers who share similar needs and respond similarly to marketing efforts. This process is called:

  1. Market targeting
  2. Market penetration
  3. Market positioning
  4. Market segmentation Correct answer.

Explanation

Market segmentation is dividing a heterogeneous market into homogeneous groups with shared characteristics. Targeting is choosing which segments to serve, positioning is shaping the brand's place in the consumer's mind, and penetration is a growth strategy.

Question 40Marketing Environment and Consumer Behaviour

A cosmetic brand sells the same cream with identical promotion to all buyers, ignoring differences in age or skin type. This strategy is:

  1. Micromarketing
  2. Undifferentiated marketing Correct answer.
  3. Concentrated marketing
  4. Differentiated marketing

Explanation

Undifferentiated marketing, or mass marketing, uses one offer and one marketing mix for the whole market. It ignores segment differences. Concentrated marketing targets one segment, differentiated marketing serves several with separate mixes, and micromarketing tailors to individuals or small localities.

Question 41Marketing Environment and Consumer Behaviour

A company positions its soap as the only one with a natural neem and tulsi formula for skin protection. Which positioning approach is being used?

  1. Positioning by competitor
  2. Positioning by price
  3. Positioning by user
  4. Positioning by product attribute and benefit Correct answer.

Explanation

This positioning highlights a specific product feature and the benefit it delivers, namely a natural formula for skin protection. User positioning identifies a type of buyer, competitor positioning compares against a rival, and price positioning stresses cost.

Question 42Marketing Environment and Consumer Behaviour

Which of the following is an element of the micro (task) environment of a firm rather than the macro environment?

  1. The prevailing political climate
  2. Its suppliers and intermediaries Correct answer.
  3. The rate of technological change
  4. The country's demographic profile

Explanation

The micro environment consists of actors close to the firm that affect its ability to serve customers, such as suppliers, intermediaries, customers, competitors and publics. Technological change, demographics and politics are broad macro forces affecting all firms.

Question 43Marketing Environment and Consumer Behaviour

A firm's sales rise sharply during a festival season and fall afterwards. This pattern is an example of which environmental influence on demand?

  1. Socio-cultural influence Correct answer.
  2. Technological influence
  3. Ecological influence
  4. Legal influence

Explanation

Festivals are cultural events that shape buying habits and create seasonal demand peaks. Such customs and traditions belong to the socio-cultural environment. Technology, law and ecology do not explain recurring festival-driven demand.

Question 44Marketing Environment and Consumer Behaviour

A consumer buys a low-priced salt of the same brand every month without much thought. This purchase best fits which type of buying behaviour?

  1. Variety-seeking buying behaviour
  2. Complex buying behaviour
  3. Habitual buying behaviour Correct answer.
  4. Dissonance-reducing buying behaviour

Explanation

Habitual buying occurs in low-involvement situations with few perceived brand differences, where the buyer repeats a familiar brand out of habit. Complex buying involves high involvement, dissonance-reducing buying involves high involvement with few differences, and variety-seeking involves low involvement but deliberate switching.

Question 45Marketing Environment and Consumer Behaviour

In the business buying process, a firm prepares a detailed description of the technical specifications of the items it needs to purchase. Which stage is this?

  1. Supplier search
  2. Order-routine specification
  3. Product specification Correct answer.
  4. Proposal solicitation

Explanation

Product specification is the stage where the buying organisation sets out technical requirements, quantities and standards for the needed item. Supplier search identifies possible vendors, proposal solicitation invites bids, and order-routine specification settles final order terms.

Question 46Marketing Environment and Consumer Behaviour

Which statement correctly distinguishes a want from a need in consumer behaviour?

  1. A need is created only by advertising, while a want is innate
  2. A need is a basic requirement, while a want is a culturally shaped desire for a specific way of satisfying it Correct answer.
  3. A need is always for luxury goods, while a want is for necessities
  4. A need and a want are identical in meaning for marketers

Explanation

A need is a fundamental requirement such as food or security, while a want is the particular form of satisfaction shaped by culture and personality, such as wanting a branded snack. Marketers influence wants rather than create basic needs. Treating needs and wants as identical ignores this distinction.

Question 47Marketing Environment and Consumer Behaviour

A firm introduces a slightly improved version of an existing product to its current markets. Under the Ansoff matrix, this is:

  1. Market penetration
  2. Diversification
  3. Market development
  4. Product development Correct answer.

Explanation

Product development means offering new or improved products to existing markets. Market development takes existing products to new markets, diversification enters new products and new markets, and penetration pushes existing products harder in existing markets.

Question 48Marketing Environment and Consumer Behaviour

A researcher wants to study why customers of a retail chain are switching to online shopping. Which sequence of steps is most appropriate for this marketing research problem?

  1. Analyse data, then define the problem, then collect data
  2. Present findings, then collect data, then define the problem
  3. Define the problem, develop a research plan, collect data, analyse data and present findings Correct answer.
  4. Collect data first, then define the problem, then present findings

Explanation

Marketing research follows a logical sequence: define the problem and objectives, develop the research design and plan, collect information, analyse it, and finally present findings for decision-making. Starting with data collection or findings reverses the logic and produces irrelevant evidence.

Question 49Market Segmentation, Targeting and Positioning

In marketing, the term 'market segmentation' refers to which of the following activities?

  1. Setting the price of a product lower than competitors
  2. Combining all buyers into one single undifferentiated market
  3. Dividing a heterogeneous market into smaller groups of buyers with similar needs Correct answer.
  4. Selecting the retail channel through which goods will be sold

Explanation

Segmentation is the process of splitting a broad, varied market into sub-groups whose members share similar needs, wants or behaviour, so that each group can be served with a tailored offer. It is an analytical step that precedes targeting and positioning. The other activities belong to pricing or distribution decisions, not to segmentation.

Question 50Market Segmentation, Targeting and Positioning

A company selling school uniforms groups its buyers as students, parents and school administrators. Which type of segmentation is being used?

  1. Benefit segmentation
  2. Demographic segmentation Correct answer.
  3. Geographic segmentation
  4. Behavioural segmentation

Explanation

Grouping buyers by who they are, such as age, occupation or role, is demographic segmentation. Students, parents and administrators differ in age and role, which are demographic characteristics. Geographic segmentation would use location, behavioural would use usage patterns, and benefit segmentation would use the specific advantage sought.