1) Which of these is NOT a reason for changes in consumer spending patterns? a) Changes in consumer income b) Changes in tastes and fashion c) Changes in market research techniques d) The price of competitors’ products 2) International franchising is one method of overcoming the problem of entering foreign markets. Which of the following are disadvantages of international franchising? a) The franchisee does not need to report to the franchisor b) The franchisee will have a better understanding of the foreign market c) The franchisor has to provide training to the franchisee d) Poor quality of products or poor service can have a negative impact on reputation across the countries that the business operates in 3) Match the method of overcoming the problems of entering new foreign markets with the following description: 'When a business allows another company to produce the product, so that the product doesn’t have to be shipped to the new location'. a) Joint Ventures b) International franchising c) Localising existing brands d) Licensing 4) How can ‘geographic segmentation’ be defined? a) Consumers in different locations may have different needs. To deal with this, a business may divide up its market based on location b) When a business divides up their consumers based on factors such as age, gender and income c) When a business goes through the process of dividing up their market, based on their customer’s features, preferences and characteristics d) When a business divides up their market based on lifestyles, attitudes and personalities 5) Joint venturing is one method of overcoming the problems of entering foreign markets. Which TWO of the following are disadvantages of joint venturing? a) If any business involved suffers a damaged reputation, it is likely to affect all businesses involved in the venture b) Only one of the businesses involved will keep the profits that are made c) Differences in leadership and company culture can lead to difficulties in decision making and damaged relationships d) Businesses can gain a better understanding of the local market 6) Which TWO of the following are limitations of niche marketing? a) Small changes in consumer spending can have a large impact on businesses that are operating in the niche market. b) Businesses in the niche market cannot use geographic segmentation c) There is less competition in the niche market d) Economies of scale are unlikely to be achieved in the niche market 7) What is meant by the term ‘market segmentation’? a) Placing a new product into a market that has not been entered before b) When a business aims their product at every person, so that they can make as much revenue as possible c) Taking a product out of the market because customers do not like it d) The process of dividing up a business’s market, based on their customer’s features, preferences and characteristics 8) What stage of the product life cycle does an extension strategy try to extend? a) Maturity b) Introduction c) Growth d) Decline 9) Which of the following is NOT a purpose of legal controls on marketing? a) To increase costs for businesses b) To stop businesses dominating the market so that there is no competition c) To protect consumers from goods that are faulty or broken d) To prevent businesses from mis-selling to products to consumers 10) What is meant by the term ‘mass market’? a) When a business aims their product or service at a small segment of the market to meet a customer need that is specialised b) Finding out about customer needs c) A place where buyers and sellers meet to buy and sell goods and services d) When a business aims their product or service at a very large market and hope that many people will buy the product or service 11) Choose the type of promotion for the following description:'Can be completed through methods such as buy one get one free offers, competitions and free samples.' a) Personal Selling b) Advertising c) Sales Promotion d) Sponsorship 12) Which of these is NOT a method of primary research? a) Focus groups b) Internet research c) Interviews d) Questionnaires 13) Which of the following is NOT an advantage of the producer – wholesaler – retailer – consumer channel? a) This distribution channel is simple because it means that there are no intermediaries b) Wholesalers can be knowledgeable about the products that they sell, so can inform both producers about the types of products that are selling well c) Wholesalers can help retailers by offering them ‘credit’, so they can take the products to sell and pay the wholesaler at a later date d) A small retailer can purchase from a wholesaler in smaller quantities, reducing the need for significant stock storage space 14) What is a product orientated business? a) Market research is used to identify what consumers want from the product, and the product is created based on this feedback b) The business decides what product they are going to produce, and then focus on finding buyers for the product after production 15) Which of the following is NOT a benefit of market segmentation? a) Market segmentation has the potential to discourage other groups of customers to buy the product b) Market segmentation can allow for price discrimination, allowing a business to make varying amounts of revenue from very similar products c) When goods and services are designed to meet the requirements of specific customer groups, sales are likely to rise d) Advertising can be targeted at particular groups of customers

Section 3: Marketing

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