DECA Marketing Principles 5 — Questions and Answers
Question 1: A company that manufactures both running shoes and athletic apparel under the same brand is using:
- Brand extension (Correct answer)
- Co-branding
- Private labeling
- Generic branding
Correct answer: Brand extension
Brand extension applies an established brand name to new product categories to leverage existing brand equity.
Question 2: Which of the following best describes 'primary data'?
- Data collected by a government agency years ago
- Original data gathered firsthand for a specific research purpose (Correct answer)
- Industry reports purchased from a research firm
- Data found in published academic journals
Correct answer: Original data gathered firsthand for a specific research purpose
Primary data is original information collected directly by the researcher through surveys, experiments, or observations for a specific study.
Question 3: A business selling luxury watches prices them at $5,000 to signal exclusivity. This is an example of:
- Penetration pricing
- Cost-plus pricing
- Prestige (premium) pricing (Correct answer)
- Odd-even pricing
Correct answer: Prestige (premium) pricing
Prestige pricing deliberately sets high prices to convey superior quality, exclusivity, and status to target customers.
Question 4: A small business owner conducts a competitive analysis. Which question is MOST relevant to this analysis?
- How many employees do we currently have?
- What are our competitors' strengths, weaknesses, and pricing strategies? (Correct answer)
- What is our company's mission statement?
- How many products are in our current inventory?
Correct answer: What are our competitors' strengths, weaknesses, and pricing strategies?
Competitive analysis focuses on understanding rivals — their strengths, weaknesses, prices, and positioning — to identify advantages.
Question 5: In the context of product development, a 'prototype' is best described as:
- A final version ready for mass production
- A preliminary model used to test and refine a concept (Correct answer)
- A patent application for a new invention
- A market research report on consumer needs
Correct answer: A preliminary model used to test and refine a concept
A prototype is an early sample or model built to test a product concept before committing to full-scale manufacturing.
Question 6: Which of the following is an example of a 'pull' promotional strategy?
- A manufacturer offering retailers higher commissions to stock its product
- A brand running consumer-facing ads to create demand that pulls the product through the channel (Correct answer)
- A wholesaler offering bulk discounts to retailers
- A sales rep personally calling on store managers to pitch a product
Correct answer: A brand running consumer-facing ads to create demand that pulls the product through the channel
A pull strategy targets end consumers directly to build demand, motivating retailers to stock the product due to consumer requests.
Question 7: The primary purpose of a marketing plan is to:
- Document employee job descriptions and salaries
- Outline strategies and tactics to achieve marketing objectives within a set time frame (Correct answer)
- Determine a company's legal structure
- Specify manufacturing quality control procedures
Correct answer: Outline strategies and tactics to achieve marketing objectives within a set time frame
A marketing plan is a strategic document that defines goals, target markets, strategies, tactics, budgets, and timelines for marketing efforts.
DECA Marketing Principles 5
A company that manufactures both running shoes and athletic apparel under the same brand is using: