REVIEW UNIT 1
Multiple Choice Questions
1. What is the primary role of marketing?
a) To create products
b) To persuade customers that a product meets their needs
c) To develop new business models
d) To manage finances
2. According to the text, how has marketing changed in the last decade?
a) It has become easier to reach the mass market
b) It has shifted focus to "one-on-one" customer relationships
c) It has stopped using national advertising
d) It no longer requires salespeople
3. What is a primary marketing task?
a) To manufacture high-quality products
b) To develop a marketing plan that captures customer attention
c) To ensure low-cost production
d) To reduce advertising expenses
4. Which of the following is not mentioned as a modern communication medium?
a) Satellite TV
b) PDAs
c) Newspapers
d) The Internet
5. According to Philip Kotler, what should marketing focus on?
a) Reducing costs
b) Mass advertising
c) Building close customer relationships
d) Eliminating competitors
6. Why has marketing become more difficult today?
a) The economy is declining
b) Customers are no longer interested in advertising
c) Customers are exposed to more information and product choices
d) There are fewer products available
7. What was one reason the American Marketing Association (AMA) changed its
definition of marketing?
a) To increase company profits
b) To focus more on building customer relationships
c) To reduce marketing costs
d) To encourage mass advertising
8. What does Customer Relationship Management (CRM) involve?
a) Managing sales transactions
b) Developing ongoing relationships with customers
c) Reducing product development costs
d) Increasing advertising budgets
9. What is Product Development?
a) A process of persuading customers to buy
b) A function that focuses on engineering and innovation
c) The process of distributing products to customers
d) A department that manages financial transactions
10. What is the purpose of Sales in marketing?
a) To inform and persuade customers to buy a product
b) To design new products
c) To handle financial transactions
d) To analyze competitors
11. Which of the following is not a stage in the product life cycle?
a) Growth
b) Expansion
c) Maturity
d) Decline
12. At which stage of the product life cycle does demand peak?
a) Embryonic
b) Growth
c) Maturity
d) Decline
13. What happens during the growth stage of the product life cycle?
a) Demand for the product increases rapidly
b) Customers are hesitant to buy the product
c) Sales start to decline
d) The product becomes obsolete
14. Why does demand decline in the decline stage?
a) The product becomes too expensive
b) Technological changes make it obsolete
c) Companies stop advertising it
d) Consumers stop needing the product
15. Which of the following is an example of a product in the growth stage?
a) Typewriters
b) Black-and-white TVs
c) Broadband internet services
d) Landline phones
16. What is the main factor that determines the length of a product’s life cycle?
a) The number of competitors in the market
b) The rate of technological change
c) The cost of production
d) Government regulations
17. What happens when customer tastes change rapidly?
a) Companies must quickly develop and market new products
b) Customers stop buying new products
c) Product prices increase significantly
d) The government regulates the market more strictly
18. Why do companies need marketing research in industries with short product life
cycles?
a) To reduce costs
b) To understand changing customer preferences
c) To avoid hiring more employees
d) To increase competition
19. What is the main challenge for marketers in today’s market?
a) Creating demand for new products
b) Reducing production costs
c) Reaching a fragmented audience with different needs
d) Increasing profit margins
20. Which of the following best describes the relationship between marketing, product
development, and sales?
a) They operate independently
b) Marketing informs customers, product development creates goods, and sales
persuade customers to buy
c) Product development only focuses on existing products
d) Sales and marketing are unrelated
