BBM Marketing Management 1 — Questions and Answers
Question 1: What are the 4Ps of the traditional marketing mix?
- Product, Price, Promotion, People
- Product, Price, Place, Promotion (Correct answer)
- Price, Place, People, Process
- Product, Place, People, Physical Evidence
Correct answer: Product, Price, Place, Promotion
The traditional marketing mix consists of Product, Price, Place (distribution), and Promotion — the four controllable variables used to satisfy customers.
Question 2: What is market segmentation?
- Setting prices based on market conditions
- Dividing a broad market into distinct subgroups with similar needs (Correct answer)
- Analyzing competitor marketing strategies
- Selecting the most profitable customers to serve
Correct answer: Dividing a broad market into distinct subgroups with similar needs
Market segmentation divides a heterogeneous market into distinct groups of consumers who share similar characteristics, needs, or behaviors.
Question 3: Which concept describes positioning a product in the minds of consumers relative to competitors?
- Market segmentation
- Brand equity
- Competitive positioning (Correct answer)
- Market penetration
Correct answer: Competitive positioning
Competitive positioning defines how a company wants customers to perceive its product relative to competing products in the target market.
Question 4: What is a 'SWOT analysis' used for in marketing?
- Analyzing financial statements
- Identifying Strengths, Weaknesses, Opportunities, and Threats (Correct answer)
- Setting marketing budgets
- Measuring customer satisfaction
Correct answer: Identifying Strengths, Weaknesses, Opportunities, and Threats
SWOT analysis evaluates internal strengths and weaknesses alongside external opportunities and threats to inform strategic marketing decisions.
Question 5: Which pricing strategy sets an initial high price then gradually lowers it?
- Penetration pricing
- Cost-plus pricing
- Price skimming (Correct answer)
- Competitive pricing
Correct answer: Price skimming
Price skimming launches a product at a high price to capture maximum revenue from early adopters, then reduces the price over time.
Question 6: What is the purpose of a marketing plan?
- To track employee performance in the marketing department
- To outline marketing objectives, strategies, and tactics for achieving business goals (Correct answer)
- To set the annual IT and software budget
- To document customer complaints and resolutions
Correct answer: To outline marketing objectives, strategies, and tactics for achieving business goals
A marketing plan documents the marketing objectives, target markets, positioning, strategies, tactics, budgets, and metrics for a specific period.
BBM Marketing Management 1
What are the 4Ps of the traditional marketing mix?