SAC preparation

True or False Statement Advertising is one component of marketing The target market for a product is usually larger than a generic market. Market research can be used to determine the type of marketing plan that should be developed. The distinguishing term, symbol or design used to identify one product or range of products from another is known as a brand. The product life cycle has five stages.

Question 1 A relatively homogenous group of potential customers with similar needs and wants is referred to in marketing terminology as a: a) market segment. b) marketing mix. c) customer profile. d) market research.

Question 2 Which of the following is an example of the production orientation marketing approach? a) Company X trains a team of salespeople in persuasive sales techniques. b) The marketing department of Company Y designs a new marketing campaign based on market research results. c) Company Z produces a product as inexpensively as possible that it is certain people will want to buy. No advertising is planned. d) Company A conducts market research.

Question 3 The four P’s that make up the marketing mix are: a) place, packaging, price, promotion. b) price, place, product, packaging. c) productivity, price, product, packaging. d) price, product, place, promotion.

Question 4 Which of the following options is likely to be the most effective in reaching the target market for a new brand of sportswear aimed at skateboarders? a) a radio advertisement aired between 7 am and 10 am on a Sunday or Wednesday morning b) a print advertisement in a local newspaper c) a billboard located near a secondary school d) a television advertisement during a telecast of an AFL football match on a Saturday afternoon

Question 5 A new brand of chocolate bar is released onto the market at a price significantly lower than that of its competitors. After three months, the price is increased to match that of its competitors. This pricing strategy is referred to as: a) a skimming policy. b) psychological pricing. c) price leadership. d) penetration pricing.

Question 6 The percentage difference between the price charged to a customer for a product and the break-even price for that product is referred to as: a) a mark-up. b) price leadership. c) complementary pricing. d) profitability.

Question 7 A range of products with the name of the retailer on them rather than the name of the manufacturer is known as: a) an outsourced brand. b) a generic or house brand. c) a primary brand. d) a secondary brand.

Question 8 The characters in a popular television program are often seen to be wearing a popular brand of clothing and drinking a well-known brand of soft drink. This is known as: a) product placement. b) brand stretching. c) branding. d) persuasive advertising.

Question 9 An example of secondary market research data is: a) a survey measuring customer satisfaction conducted by the operator of a business. b) data obtained from the Australian Bureau of Statistics (ABS) regarding the demographics of people living in a geographic area. c) customers are asked their postcode at the checkout of a store; this data is used by the store to determine where their customers are living. d) a school canteen collects data on students’ spending habits based on the daily takings over several weeks.

Question 10 The Pareto Principle can be summarised as: a) 20 per cent of customers generate 90 per cent of the sales revenue for most businesses. b) 80 per cent of customers generate 80 per cent of the sales for most businesses. c) 80 per cent of sales are generated by 5 per cent of customers for most businesses. d) 80 per cent of sales are generated by 20 per cent of customers for most businesses.

Question 11 The target market for a brand of high-quality designer menswear would be: a) female, 45+ years, low income, living in a rural area. b) male, professional, high income, 35 to 60 years of age. c) male, 20 to 30 years of age, trades people. d) male, 50+ years of age, environmentally aware.

Question 12 Which of the following would be the best position for a supermarket to place an impulse purchase item, such as a magazine or chocolate bar, in order to maximise sales? a) at the store entrance b) next to staples such as milk or bread c) at the checkout d) at the back of the store

Question 13 If sales of a product are falling and discounting of the product is occurring, the stage of the product life cycle is most likely to be: a) introduction. b) growth. c) maturity. d) decline. e) extension.

Question 14 A business which, through its dominant market position, is able to set prices that other businesses in competition with it adopt is known as a: a) pace setter. b) brand leader. c) up seller. d) target market.

Question 15 A luxury car manufacturer, such as Ferrari or Porsche, also sells items of clothing with the company logo on them, such as caps and T-shirts. This is known as: a) brand stretching. b) brand equity. c) product placement. d) product differentiation.