BBM Marketing Management 2 — Questions and Answers
Question 1: What does 'brand equity' mean?
- The monetary value of a company's brand assets (Correct answer)
- The total advertising spend on a brand
- The number of product lines under a brand
- The geographic reach of a brand
Correct answer: The monetary value of a company's brand assets
Brand equity is the commercial value derived from consumer perception of a brand name, including loyalty, awareness, perceived quality, and associations.
Question 2: Which distribution strategy makes a product available in as many outlets as possible?
- Exclusive distribution
- Selective distribution
- Intensive distribution (Correct answer)
- Direct distribution
Correct answer: Intensive distribution
Intensive distribution places products in the maximum number of outlets to ensure widespread availability, typically used for convenience goods.
Question 3: What is a 'unique selling proposition' (USP)?
- A legal trademark for a company's slogan
- The distinct benefit that differentiates a product from competitors (Correct answer)
- The lowest price in the market
- A guarantee of product quality
Correct answer: The distinct benefit that differentiates a product from competitors
A USP (Unique Selling Proposition) is the specific benefit or feature that makes a product distinctively better or different from competitors.
Question 4: Which of the following is an example of 'pull' marketing strategy?
- Offering trade discounts to retailers
- Training the sales force to push products
- Running consumer advertising to create demand (Correct answer)
- Providing in-store promotional displays
Correct answer: Running consumer advertising to create demand
Pull strategy uses consumer-directed advertising and promotions to generate demand that 'pulls' products through the distribution channel.
Question 5: What is 'customer lifetime value' (CLV)?
- The age of a customer relationship
- The total revenue a customer generates over their entire relationship with a company (Correct answer)
- The cost of acquiring a new customer
- The average purchase value per transaction
Correct answer: The total revenue a customer generates over their entire relationship with a company
Customer Lifetime Value (CLV) predicts the total net profit attributed to the entire future relationship with a customer.
Question 6: What does 'market share' measure?
- The total size of a market in dollar value
- A company's sales as a percentage of total industry sales (Correct answer)
- The growth rate of a market over time
- The number of competitors in a market
Correct answer: A company's sales as a percentage of total industry sales
Market share represents a company's portion of total sales within its industry or market, expressed as a percentage.
BBM Marketing Management 2
What does 'brand equity' mean?