MBA Marketing 1 — Questions and Answers
Question 1: What are the 4 Ps of the traditional marketing mix?
- People, Process, Physical Evidence, Promotion
- Product, Price, Place, Promotion (Correct answer)
- Planning, Pricing, Packaging, Promotion
- Product, Profit, Place, Publicity
Correct answer: Product, Price, Place, Promotion
The classic 4 Ps marketing mix framework — Product, Price, Place, and Promotion — provides the foundation for building a marketing strategy.
Question 2: What is market segmentation?
- Setting a single price for all customers
- Dividing a broad market into distinct subgroups with common needs or characteristics (Correct answer)
- Eliminating unprofitable product lines
- Standardizing marketing messages for mass audiences
Correct answer: Dividing a broad market into distinct subgroups with common needs or characteristics
Market segmentation divides heterogeneous markets into homogeneous groups, allowing companies to tailor products and messages to specific customer needs.
Question 3: What does 'brand equity' refer to?
- The monetary value of a company's physical assets
- The added value a brand name provides to a product beyond its functional benefits (Correct answer)
- The total advertising budget a brand has spent
- The number of patents a brand holds
Correct answer: The added value a brand name provides to a product beyond its functional benefits
Brand equity is the premium value that consumers assign to a product because of its brand name, built through awareness, loyalty, and perceived quality.
Question 4: What is the difference between push and pull marketing strategies?
- Push targets end consumers; pull targets distributors
- Push promotes to intermediaries to carry the product; pull stimulates consumer demand directly (Correct answer)
- Push uses digital channels; pull uses traditional channels
- Push is B2B; pull is B2C only
Correct answer: Push promotes to intermediaries to carry the product; pull stimulates consumer demand directly
A push strategy promotes products through the supply chain to intermediaries, while a pull strategy generates consumer demand that pulls the product through the channel.
Question 5: What is 'customer lifetime value' (CLV)?
- The one-time revenue from a single transaction
- The total net profit a company expects from a customer over the entire relationship (Correct answer)
- The cost to acquire a new customer
- The average order value per customer
Correct answer: The total net profit a company expects from a customer over the entire relationship
CLV estimates the total revenue (minus associated costs) a business can expect from a single customer account throughout the business relationship.
Question 6: Which pricing strategy sets a high initial price to capture early adopters before lowering prices over time?
- Penetration Pricing
- Cost-Plus Pricing
- Price Skimming (Correct answer)
- Value-Based Pricing
Correct answer: Price Skimming
Price skimming maximizes revenue from early adopters willing to pay a premium, then lowers prices gradually to attract more price-sensitive customers.
MBA Marketing 1
What are the 4 Ps of the traditional marketing mix?