Chapter-11-Marketing 

  • Board
    CBSE
  • Textbook
    NCERT
  • Class
    Class 12
  • Subject
    Business Studies
  • Chapter
    Chapter-11-Marketing 
  • Chapter Name
    Chapter 11 Marketing
  • Category
    CUET (Common University Entrance Test) UG

MCQ-Based Questions for CUET Business Studies Chapter-11-Marketing 

This page is prepared by HT experts and consists of MCQ-Based Questions for CUET Business Studies chapter-11-Marketing with a detailed explanation of all the questions asked from 11-Marketing. To find the solution to the MCQ questions click on the answer tab. Check out chapter-wise CUET Business studies MCQ questions. 

Practice Questions for CUET Business Studies chapter-11-Marketing SET-1

Business Studies - MCQ on Marketing

Class XII

Q.1. Marketing helps the goods to be transported from the producer’s place to the consumer’s place. It thus creates

a. possession utility.

b. time utility.

c. place utility.

d. planning utility.

Answer:

(c)

Explanation: Marketing helps to move goods from the place, where they are produced to another place, where they are needed for consumption. Thus, marketing creates place utility.

Q.2. Selling means

a. knowing the customer.

b. transferring the ownership of goods.

c. changing the product line.

d. designing products.

Answer:

(b)

Explanation: Selling is a part of marketing and means transferring the product or service to the person who needs it.

Q.3. Product, production, selling, marketing and societal are the

a. objectives of marketing.

b. concepts of marketing.

c. process of marketing.

d. parts of marketing mix.

Answer:

(b)

Explanation: These are the concepts or philosophies of marketing management. Every concept stresses the need of a particular approach on the part of producers to achieve profit maximisation.

Q.4. Selling means transferring goods from seller to buyer. Thus, selling begins

a. before the production.

b. during the production.

c. after the production.

d. before the marketing.

Answer:

(c)

Explanation: Selling starts after goods are produced. It ends as soon as goods are transferred to the buyers.

Q.5. The market value of a commodity or an article is called

a. cost.

b. price.

c. demand.

d. supply.

Answer:

(b)

Explanation: Price is the value of a commodity that it will yield in terms of money when sold in the market.

Q.6. A path consisting of one or more middlemen through whom the product of the producer reaches its consumers is called

a. channel of distribution.

b. promotion.

c. transportation.

d. ordering.

Answer:

(a)

Explanation: Channel of distribution means the type and number of middlemen through whom the final products are transferred to consumers. The examples of middlemen are wholesalers, retailers and agents. Too many middlemen can unnecessary inflate the price of the product, and too few middlemen can cause unavailability of goods at all the places and all the time.

Q.7. Creating demand for the product of the organisation is one of the objectives of

a. financial management.

b. enterprise management.

c. marketing management.

d. personnel management.

Answer:

(c)

Explanation: It is an objective of marketing to inform the public about the products of an enterprise and induce them to buy these products for satisfaction of their needs.

Q.8. Selling aims to maximise profits by

a. increasing sales volume.

b. satisfying customers.

c. reducing costs.

d. bringing efficiency in management.

Answer:

(a)

Explanation: The object of selling is to increase the sales and earn profits. Selling means transferring ownership. It doesn’t involve knowing what buyers want rather it aims at selling what producers have.

Q.9. The process of deciding the price of a commodity after analysing its cost, desired profit margin, cost of transporting, discounts to be allowed is called

a. product design.

b. product grading.

c. pricing.

d. promotion.

Answer:

(c)

Explanation: Pricing is the process of deciding the value a product will generate in terms of money when it will be sold in the market.

Q.10. The goods once produced are stored upto the time they are used for marketing. Thus, marketing creates

a. time utility.

b. place utility.

c. possession utility.

d. producer utility.

Answer:

(a)

Explanation: Preserving the goods produced up to the time they are used by the consumers is called creating place utility in the goods. Marketing creates place utility by storage and warehousing.

Q.11. Informing and persuading potential buyers to buy the products of an enterprise is called

a. promotion.

b. pricing.

c. distribution.

d. production.

Answer:

(a)

Explanation: Promotion means assisting and inducing the customers to buy a product. It includes informing the consumers about the product-line of an enterprise and influencing their behaviour to buy these products.

Q.12. Promotion is a part of marketing mix. It helps in

a. building an image for the product.

b. finding the right distribution channel.

c. reducing the sales volume.

d. packaging the product.

Answer:

(a)

Explanation: Promotion means influencing the behaviour of the customers. It involves making a favourable image for the product. Generally consumers prefer the products, which are heavily advertised.

Q.13. Advertisement is a part of promotion mix. Advertisement involves

a. face-to-face contact.

b. non-personal contact.

c. no money expenditure.

d. reduction in the cost of the product.

Answer:

(b)

Explanation: Advertisement involves non-personal contact. Face-to-face contact is a part of personal selling where salesmen interact directly with the customers.

Q.14. Product, price, promotion and physical distribution are collectively called

a. planning mix.

b. management mix.

c. financial mix.

d. marketing mix.

Answer:

(d)

Explanation: Marketing mix includes all the activities, which are undertaken in the marketing management. These activities are broadly classified into four categories, namely, planning mix, management mix, financial mix and marketing mix.

Q.15. Storage and warehousing are a part of

a. product mix.

b. promotion mix.

c. place or physical distribution mix.

d. price mix.

Answer:

(c)

Explanation: Storage and warehousing help in keeping the finished goods in fine conditions from the time they are produced upto the time they are purchased by the consumer. They are a part of place mix.

Q.16. The activity of determining the wants of the customers is called

a. process research.

b. product research.

c. marketing research.

d. quality research.

Answer:

(c)

Explanation: The purpose of doing marketing research is to get an idea about the customers’ tastes and preferences, so that goods can be manufactured as per the needs of the customers.

Q.17. A name, sign, symbol, design or a combination of these used to distinguish the product of a company from others is called a

a. promotion.

b. brand.

c. pricing.

d. research.

Answer:

(b)

Explanation: Branding means making the goods look unique in the eyes of the customers. Branding helps a customer to easily locate a particular product from a group of similar products.

Q.18. The combination of different kinds of promotional techniques to maintain or increase the sales of an enterprise is called

a. product mix.

b. promotion mix.

c. place or physical distribution mix.

d. price mix.

Answer:

(b)

Explanation: Promotion mix consists of different techniques of promotion, viz. personal selling, advertising, publicity and sales promotion. It is advisable not to use only one of these techniques but a combination of these to get maximum benefits.

Q.19. Inventory control is a part of

a. product mix.

b. promotion mix.

c. place or physical distribution mix.

d. price mix.

Answer:

(c)

Explanation: In place mix of marketing, we ensure that excess goods are not stored, or say, the actually needed goods are stored for production. This will avoid the unnecessary locking of working capital of the company in raw materials.

Q.20. The aim of marketing is to maximise profits by

a. increasing sales.

b. ensuring customer satisfaction.

c. reducing profits.

d. efficient management.

Answer:

(b)

Explanation: Marketing not only involves selling but also aims to ensure that the selling is actually resulting in customers’ satisfaction. In marketing, we analyse what customers want and how their wants can be satisfied in the best possible manner.

Q.21. The other name for physical distribution mix is

a. product mix.

b. marketing logistics.

c. marketing goods.

d. goods consumption.

Answer:

(b)

Explanation: Physical distribution mix is also called marketing logistics or logistic management.

Q.22. Making consumers aware of the products of an enterprise is a part of

a. financial management.

b. marketing management.

c. personnel management.

d. production management.

Answer:

(b)

Explanation: Through marketing management, an enterprise informs its existing and prospective consumers about its existing and new products. It helps the consumers to analyse different products and buy the one, which best suits their requirements.

Q.23. The combination of various features related to the product or service to be offered such as quality, quantity, package, brand name, etc. are a part of

a. promotion mix.

b. physical distribution mix.

c. place mix.

d. product mix.

Answer:

(d)

Explanation: All these decisions are taken in product mix, which is a part of marketing mix. It is one of the four Ps of marketing.

Q.24. Marketing involves locating the potential customers, knowing their demands and satisfying them. Thus, marketing starts

a. after production.

b. before production.

c. after selling.

d. during the production.

Answer:

(b)

Explanation: Marketing means knowing the demands of customers. This means before producing the producers should know about the product to be produced and its specifications as well. Marketing continues even after selling because after-sale-service is also a part of marketing.

Q.25. Branding is a part of

a. product mix.

b. promotion mix.

c. place or physical distribution mix.

d. price mix.

Answer:

(a)

Explanation: Product mix includes branding, a process of giving a unique name, symbol, design or a combination of these to the product. A good brand name is easy to remember and customers don’t forget it easily. Good brand makes it easy for the consumers to locate the product easily among similar other products.

Q.26. One of the objectives of pricing strategy of a firm is to

a. fix the price.

b. fluctuate the price.

c. provide a sustainable rate of return on investments.

d. to defeat competitors.

Answer:

(c)

Explanation: Every organisation wants to earn profits that will help it sustain and grow in the ever changing and challenging business environment. Pricing mix helps an organisation to fix the prices at such a level that will enable it to sustain and develop. It will also make the products cost effective for the consumers.

Q.27. Sellers sell goods to consumers. It means creating

a. place utility.

b. possession utility.

c. time utility.

d. storage utility.

Answer:

(b)

Explanation: When the ownership of a product is changed to make it useful for other people, it is referred as creating possession utility. The goods are not of much value to a producer but they become useful as soon as the possession is transferred to the consumers.

Q.28. A group of similar products, which can substitute each other in usage, is called

a. production group.

b. storage line.

c. products.

d. product line.

Answer:

(d)

Explanation: Product line is the word used for similar products, which serve same purpose. The examples of product line are cars, cosmetics and electrical equipments, etc. We can say that the product line of Maruti Suzuki is cars as it produces different categories of cars as per the needs of the buyers.

Q.29. One of the concepts or philosophies of marketing management stresses the need of persuasive and attractive selling as a means to increase the sales, and thus increase the profits. This concept is

a. product concept.

b. marketing concept.

c. selling concept.

d. production concept.

Answer:

(c)

Explanation: As per the selling concept, buyers buy those products for which they are persuaded. This concept stresses the need of convincing and motivating the buyers to purchase a product. Selling here means selling either by hook or crook. This concept may help the organisation to earn profits in the short-term but in the long-term, unsatisfied customers may ruin the image of the organisation.

Q.30. Selling means transferring the ownership of a product to its consumers. Selling is

a. producer oriented.

b. time oriented.

c. society oriented.

d. customer oriented.

Answer:

(a)

Explanation: Selling is producer oriented because it is the producer who decides what has to be produced and in which way.

Q.31. The consumer goods, which are repetitively used with minimum efforts on the part of the buyer, are called

a. shopping goods.

b. convenient goods.

c. raw materials.

d. specialty goods.

Answer:

(b)

Explanation: Convenient goods are normally daily-use goods, viz. toothpaste, soaps, edible oils, vegetables, etc.

Q.32. Distributing samples and coupons to the customers is a part of

a. personal selling.

b. publicity.

c. advertisement.

d. sales promotion.

Answer:

(d)

Explanation: All the activities, which increase sales and do not come under personal selling, publicity and advertisements, are a part of sales promotion. It is not a continuous process and is used occasionally by organisations.

Q.33. One of the concepts of marketing management says that consumer satisfaction should not be blindly followed. This concept is

a. production concept.

b. marketing concept.

c. societal concept.

d. product concept.

Answer:

(c)

Explanation: According to societal concept, giving consumers all that they want is not right. Consumers should be discouraged to use the products, which are unethical and can harm the environment. If a consumer wants to consume drugs, he should not be supplied the drugs just for the sake of satisfying him.

Q.34. Putting a small slip on the product containing its nature, contents, ownership and its target consumers is called

a. branding.

b. labelling.

c. trade mark.

d. packaging.

Answer:

(b)

Explanation: Labelling contains the information regarding the name of the product, the address of manufacturer, the date of manufacture, the expiry date, the maximum retail price, the ingredients, the warning, etc.

Q.35. Choice of a suitable channel of distribution is a part of

a. price mix.

b. product mix.

c. promotion mix.

d. place or physical distribution mix.

Answer:

(d)

Explanation: In physical distribution, we decide about the channel of distribution, i. e. , whether an organisation wants to sell it directly to the consumers or through one or more middlemen such as wholesalers, retailers and agents.

Q.36. Trade mark is a brand name which

a. can be copied.

b. can be imitated.

c. cannot be copied.

d. should be complicated.

Answer:

(c)

Explanation: Trade mark is always registered so that it cannot be copied. Trade mark sets a distinct image of the organisation as well as its product. The examples of trade mark are Dalda, Lux, Tide, Cinthol, etc.

Q.37. Publicity is a part of

a. product mix.

b. promotion mix.

c. place or physical distribution mix.

d. price mix.

Answer:

(b)

Explanation: Publicity means creating news, which favourably impact the business. This is called non-paid form of promotion because a company doesn’t spend money on publicity. It just spreads news via radio, events, etc. which make a good image for the organisation.

Q.38. One of the features of good packaging is that it is

a. safe.

b. economical.

c. Label-free.

d. Bright-coloured.

Answer:

(a)

Explanation: A good packaging should be safe and convenient to handle.

Q.39. Transportation is a part of place or physical distribution mix. Transportation helps in

a. reducing the markets.

b. increasing the markets.

c. creating time utility.

d. creating possession utility.

Answer:

(b)

Explanation: With the help of transport, a produce can supply his goods to distant areas. In this way, the market is increased and the company is able to earn more profits due to increased demand.

Q.40. Caveat emptor is a principle of

a. marketing.

b. controlling.

c. selling.

d. organising.

Answer:

(c)

Explanation: Caveat emptor means “let the buyer beware”. This is a principle of selling because selling is not concerned about informing the buyers about various conditions of buying and usage of the product. It is the responsibility of the buyer to apprise himself of the conditions of buying and usage of the product.

Q.41. Advertisement is a part of promotion mix. Advertisement helps in

a. increasing the supply of product.

b. decreasing the demand of product.

c. increasing the goodwill of the organisation.

d. decreasing the supply of product.

Answer:

(c)

Explanation: Advertisement helps to increase the image of the organisation. Good image and reputation helps secure more demand for the product.

Q.42. Advertisement means influencing people to buy goods of an enterprise. Advertisement is a part of

a. product mix.

b. promotion mix.

c. place or physical distribution mix.

d. price mix.

Answer:

(b)

Explanation: Promotion mix includes all the activities, which induce the customers to buy the products of an organisation.

Q.43. The total time for which a product lasts in the market is also called

a. product name.

b. product life cycle.

c. product qualities.

d. production methods.

Answer:

(b)

Explanation: Product life cycle means the duration of the life of a product in the market. The stages in the life cycle of a product include introduction stage, growth stage, maturity stage and decline stage.

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Q.44. Advertising is a part of

a. product mix.

b. promotion mix.

c. place or physical distribution mix.

d. price mix.

Answer:

(b)

Explanation: Advertising means non-personal contact with the consumers. It is done through television, newspapers, magazines, hoardings, etc. Advertising means one-way communication.

Q.45. Labelling is a part of

a. product mix.

b. promotion mix.

c. place or physical distribution mix.

d. price mix.

Answer:

(a)

Explanation: Labelling involves informing customers about the quantity, quality, price, manufacturing date, expiry date etc.

Q.46. Marketing includes selling goods keeping in mind the requirements of the consumer. Marketing is

a. producer oriented.

b. time oriented.

c. society oriented.

d. customer oriented.

Answer:

(d)

Explanation: Requirements of the customers are of utmost importance in marketing concept because the goods are designed and produced keeping in mind the needs and wants of the consumers. In marketing concept, producers try to produce what the customers want.

Q.47. One of the concepts or philosophies of marketing management, stresses the need of mass production to increase the profits. Besides this, increase in production, also helps in reducing the cost. This concept is

a. product concept.

b. marketing concept.

c. selling concept.

d. production concept.

Answer:

(d)

Explanation: In production concept of marketing, the key to earn higher profits is to produce in large quantities.

Q.48. The goods, which are randomly purchased by consumers after comparative study among competitive brands, are called

a. shopping goods.

b. convenience goods.

c. raw materials.

d. specialty goods.

Answer:

(a)

Explanation: Shopping goods last longer compared to convenient goods. The examples of shopping goods are TV, Furniture, Car, Motor bike, etc.

Q.49. Transporting means moving goods from one place to another. Transportation creates

a. time utility.

b. place utility.

c. price utility.

d. possession utility.

Answer:

(b)

Explanation: Transportation moves goods from producers’ place to consumers’ place. It creates place utility by removing place barrier of producer and consumer.

Q.50. Branding is a type of

a. packaging.

b. labelling.

c. grading.

d. pricing.

Answer:

(b)

Explanation: Branding is a part of labeling, which means providing information to the customer about the product. Branding makes a product identifiable and unique among several similar products.

Practice Questions for CUET Business Studies chapter-11-Marketing SET-2

Q.51. The activities related to the choice of distribution channel and the actual transportation of goods come under

a. product mix.

b. promotion mix.

c. place or physical distribution mix.

d. price mix.

Answer:

(c)

Explanation: The place mix or physical distribution mix of marketing mix consists of the activities, which are involved in deciding the number of middlemen in the distribution channel, and the mode of transport to be used while moving the goods from one place to another place.

Q.52. Advertisement helps in

a. increasing the supply of product.

b. decreasing the demand of the product.

c. educating the customers.

d. physical distribution of goods.

Answer:

(c)

Explanation: Advertisement helps in informing the customers about the product and its different uses. It saves shopping time of the customers because they already know everything about the product.

Q.53. Personal selling or salesmanship is a part of

a. product mix.

b. promotion mix.

c. place or physical distribution mix.

d. price mix.

Answer:

(b)

Explanation: Personal selling is a promotion technique where a seller convinces a potential consumer in face-to-face contact.

Q.54. The decision regarding distributing goods directly to customer or through one or more middlemen comes under the category of

a. product mix.

b. promotion mix.

c. place or physical distribution mix.

d. price mix.

Answer:

(c)

Explanation: In distribution mix, a company decides whether it wants to distribute goods directly to the customers through its authorised showrooms just like Bata India Ltd sells its shoes. The company may also decide to distribute its goods through dealers, e.g., publishers sell books through wholesalers and retailers.

Q.55. One of the disadvantages of advertising is that it

a. reduces supply of product.

b. increases demand of the product.

c. informs consumers.

d. misleads consumers.

Answer:

(d)

Explanation: Companies normally exaggerate the benefits of their products and put false claims to influence the consumer so that they buy their products. The consumer thinks that companies are providing authentic information in their advertisement and fall in their trap.

Q.56. The activity done to protect the product from spoilage, pilferage, breakdown and any other physical damage is called

a. packing.

b. pricing.

c. labelling.

d. grading.

Answer:

(a)

Explanation: Packing means putting the finished product into bags, packets and boxes to protect them from physical damage. Packing helps the product to reach the target consumer without loss in quantity and in good condition.

Q.57. Advertisement helps the organisation by

a. increasing the dependence on middlemen.

b. reducing the dependence on middlemen.

c. increasing the supply of the product.

d. reducing the demand of the product.

Answer:

(b)

Explanation: Advertisement helps inform the consumers about the product of the company. When a product is popular among the consumers, it is not necessary to provide incentives to middlemen to increase the sales of the product.

Q.58. Transportation is a part of

a. product mix.

b. promotion mix.

c. place or physical distribution mix.

d. price mix.

Answer:

(c)

Explanation: Transportation means moving goods from the centre of production to different geographically located centres of consumption. An organisation has to decide whether it would use its own transport facilities or hire transporting agencies for the same. An organisation also decides whether the goods would be transported by road, sea or air.

Q.59. One of the objectives of the promotion of a product is to

a. reduce demand.

b. increase demand.

c. distribute goods.

d. fix the price of goods.

Answer:

(b)

Explanation: Promotion of a product helps the customers to know about the product, and companies to induce them to buy the products.

Q.60. One of the concepts or philosophies of marketing management stresses the need to produce high quality goods in order to earn large profits and realise the organisational goals. This concept is

a. production concept.

b. marketing concept.

c. societal concept.

d. product concept.

Answer:

(d)

Explanation: Product concept of marketing recommends an organisation to produce high quality goods. It is assumed that customers will buy superior quality goods.

Q.61. One of the disadvantages of advertising is that it

a. reduces the demand.

b. reduces the supply.

c. increases the selling price.

d. informs the consumers.

Answer:

(c)

Explanation: The organisations spending heavily on advertising ultimately recover this money from the consumers. The companies such as Coco cola or Pepsi spend a huge amount on advertising their soft drinks. They recover this amount ultimately from the consumers. In this way, the consumer has to bear the advertising costs of a company.

Q.62. One of the disadvantages of advertising is that it

a. informs consumers.

b. increases demand.

c. spoils social values.

d. creates employment.

Answer:

(c)

Explanation: Advertising increases materialism and spoils the lifestyle of the people. Advertising stresses on selling a product to the consumers whether they actually need it or not. Tobacco chewing, smoking and drinking wine are social evils that are advertised in one way or the other.

Q.63. Skimming pricing is a pricing strategy that includes

a. setting high price in the starting.

b. setting low prices at the starting of product.

c. distributing goods free of cost in the initial time.

d. distributing goods to employees only.

Answer:

(a)

Explanation: In skimming price strategy, the prices are set high in the starting to make a higher image of the product. The companies, which want to set a high impression of their product in the market, follow this strategy. Rolls Royce cars, Rolex watches, etc. are the brands, which follow skimming price strategy.

Q.64. A branding word, sign or symbol that is legally protected in the sense that it cannot be copied is called

a. label.

b. packaging.

c. trade mark.

d. pricing.

Answer:

(c)

Explanation: Trademark is a kind of brand, which cannot be copied. A brand, which cannot be simulated, is called trademark. The examples of trademark are Lux, Surf, Amul, Ariel, Perk, etc.

Q.65. The producers produce and sell what consumers want and not what they have. This concept is

a. production concept.

b. marketing concept.

c. societal concept.

d. product concept.

Answer:

(b)

Explanation: Marketing philosophy says that products should be designed as per the needs and requirements of the customers. For this, a producer should know the customer requirements before starting the production. He should avoid producing as per his personal choice and preference and then selling it as it is to the customers without trying to know what they want.

Q.66. One of the disadvantages of advertising is that it

a. creates unemployment.

b. creates monopoly.

c. reduces demand.

d. increases demand.

Answer:

(b)

Explanation: Advertisement creates monopoly of a few rich companies. Small companies do not have as much funds to spend on advertising as big organisations have. In this way, small companies find it difficult to sustain and grow in an environment, whereas big organisations spend a lot of money on advertising.

Q.67. Personal selling or salesmanship involves

a. face-to-fact contact.

b. non-personal contact.

c. interacting via television.

d. selling through newspaper.

Answer:

(a)

Explanation: Personal selling is a technique of promotion mix or marketing. In this technique, the salesman directly interacts with the potential consumer to convince and motivate him to buy the desired product.

Q.68. A case, container or wrapper used in the packing of the product is called

a. branding.

b. promotion.

c. packaging.

d. labelling.

Answer:

(c)

Explanation: Packaging is the container used in the packing of the goods and is also called silent salesman. Selection of correct packaging is very important as it helps the customers in handling the product.

Q.69. One of the objectives of inventory control is to

a. reduce the level of inventory.

b. increase the level of inventory.

c. maintain adequate inventory.

d. transport the goods.

Answer:

(c)

Explanation: Inventory control ensures that no excess funds are invested in the stock of goods and that the production process is not hampered by the shortage of inventory.

Q.70. Warehousing helps in

a. price fluctuation.

b. labelling.

c. packaging.

d. price stabilisation.

Answer:

(d)

Explanation: Warehousing helps in maintaining an adequate supply of the product at all times. It helps to avoid out of stock situation, which improves the image of the enterprise and its product. Adequate availability also removes black-marketing.

Q.71. Packaging is a part of

a. product mix.

b. promotion mix.

c. place or physical distribution mix.

d. price mix.

Answer:

(a)

Explanation: Packaging means not only packing the product but also selecting the best wrapper or container so that the product is made attractive and convenient for the customer.

Q.72. Advertising is a part of promotion mix. Advertisement helps

a. the producers by distributing goods.

b. media by giving source of earnings.

c. to reduce the supply of the product.

d. in storing the goods.

Answer:

(b)

Explanation: Advertisement is one of main sources of income for the media such as newspapers, televisions, etc. Printing newspapers and running televisions channels will not be a profitable venture, if there is no advertisement in these medias.

Q.73. Publicity is a part of promotion mix. Publicity involves

a. spending money.

b. no monetary expenses.

c. face-to-face interaction with customers.

d. giving discounts and coupons.

Answer:

(b)

Explanation: Publicity is a non-paid form of promotion. It involves mention of the organisation in the print or electronic media to improve its image. Normally companies organise events to gain publicity. For example, some companies organise marathons in big cities and media covers these events free of cost.

Q.74. Penetrating pricing is a pricing strategy. Penetrating pricing means

a. setting high price in the starting.

b. setting low prices at the time of launching of the product.

c. distributing goods free of cost in the initial time.

d. distributing goods to employees only.

Answer:

(b)

Explanation: In this pricing strategy, initially prices are set low to gain as much market share as possible. Reliance communications launched its mobile services following this strategy. Normally the companies producing daily-use items follow this strategy. The main objective of this strategy is to make the product reach a large population in a very short time after its launch.

Q.75. The concept or philosophy of marketing management says that the products should be designed as per the needs of the consumers. This concept is

a. production concept.

b. marketing concept.

c. societal concept.

d. product concept.

Answer:

(b)

Explanation: As per the marketing concept of marketing management, products should be designed to fulfill the needs of the consumers. Higher profits can be earned in the long-term only if consumers are satisfied at the first place.

Q.76. One of the disadvantages of advertising is that it

a. informs consumers.

b. increases demand.

c. confuses customers.

d. creates employment.

Answer:

(c)

Explanation: A company produces several products of same categories. Every company claims its product to be better than those of others. In this scenario, it becomes difficult for the consumers to find out the product, which he should actually buy to satisfy his needs.

Q.77. Personal selling involves

a. one way communication.

b. two way communication.

c. no communication at all.

d. communicating after selling.

Answer:

(b)

Explanation: One of the advantages of personal selling or salesmanship is that it facilitates face-to-face communication with the customers. This helps to clarify the doubts and objections of the customers on the spot.

Business Studies - MCQ on Business Finance and Marketing

Practice Questions for CUET Business Studies chapter-11-Marketing SET-3

Q.1. What does the term ‘market’ refer to

a. A place where buyers and sellers gather to enter into transactions involving the exchange of goods and services.

b. A place where goods are bought by retailers from wholesalers only.

c. A place where goods are sold by wholesalers to retailers only.

d. None of the above.

Answer:

(a)

Expln. In modern marketing sense, market refers to a set of actual and potential buyers of a product or service.

Q.2 Which of the following statements is/are false

a. Marketing is merely a post-production activity.

b. Marketing includes many activities that are performed even before goods are produced.

c. Marketing continues even after the goods have been sold.

d. None of the above.

Answer:

(a)

Expln. Marketing includes many activities that are performed even before goods are actually produced and continue even after the goods have been sold.

Q.3 What is the focus of the process of marketing

a. To distribute goods that do not have a demand in the market.

b. Advertising only.

c. Satisfaction of the needs and wants of individuals and organisations.

d. None of the above.

Answer:

(c)

Expln. Marketing helps individuals and groups in obtaining what they need and want.

Q.4 Why is ‘exchange’ referred to as the essence of marketing

a. Goods are produced at different places and are distributed over a wide geographical area through various middlemen.

b. Marketing involves exchanges at different levels of distribution.

c. Both 1 and 2.

d. None of the above.

Answer:

(c)

Expln. Exchange is vital for the process of marketing, without which marketing will not be possible.

Q.5 Marketing activities are equally relevant to which of the following

a. Hospitals, schools and sports clubs.

b. Social and religious organisations.

c. Non-profit organisations.

d. All of the above.

Answer:

(d)

Expln. Marketing helps these organisations in achieving their goals such as spreading the message of family planning, improving the literacy standards of people and providing medication to the sick.

Q.6 What is a product

a. Bundle of utilities.

b. Source of satisfaction.

c. Used to satisfy human needs and wants.

d. All of the above.

Answer:

(d)

Expln. According to marketing concepts, anything that can be of value to the buyer can be termed as a product.

Q.7 What is the focus of marketing management

a. Achieving desired exchange outcomes with target markets.

b. Promotion of goods and services only.

c. Advertising only.

d. None of the above.

Answer:

(a)

Expln. Marketing Management refers to planning, organizing, directing and control of the activities which facilitate exchange of goods and services between producers and consumers or users of products and services.

Q.8 Which of the following is true

a. Marketing and selling is one and the same thing.

b. Marketing refers to a large set of activities of which selling is just one part.

c. Marketing is merely a part of selling process.

d. All of the above.

Answer:

(b)

Expln. Selling is only a part of the process of marketing.

Q.9 Production Concept puts greater emphasis on improving the production and distribution efficiency of the ________.

a. Customers.

b. Sellers.

c. Firms.

d. All of the above.

Answer:

(c)

Q.10 What is the guideline of Product Concept

a. Product improvement is the key to profit maximisation of a firm.

b. It is not the product but marketing which is important.

c. Increased profits will automatically lead to product improvement.

d. All of the above.

Answer:

(a)

Q.11 What does the Sales Concept assume

a. Customers will naturally buy when there is a need, whether marketing has been done by the firm or not.

b. It is not always the will of the customer that makes him buy a product.

c. Customers would not buy, or not buy enough, unless they are adequately convinced and motivated to do so.

d. All of the above.

Answer:

(c)

Q.12 What does the Marketing Concept imply

a. Focus on advertising is the key to the success of any organisation.

b. Focus on satisfaction of customer’s needs is the key to the success of any organisation.

c. Both of the above.

d. none of the above.

Answer:

(b)

Q.13 Which of the following are the functions of marketing

a. Gathering and Analysing Market Information.

b. Product Designing and Development.

c. Transportation.

d. All of the above.

Answer:

(d)

Expln. Marketing Planning, Standardisation and Grading, Packaging and Labelling, Branding, Customer Support Services, Pricing of products, Promotion, Physical distribution and warehousing are also functions of marketing.

Q.14 Marketing acts as a _________ in the economic development of a country.

a. Hindrance

b. Catalyst

c. Both of the above

d. None of the above

Answer:

(b)

Q.15 The elements of Marketing Mix have been classified into four categories, also called four Ps. They are

a. Product, Price, Place and Promotion.

b. Public, Private, Property and Place.

c. Purchase, Privilege, Priority and Property

d. All of the above.

Answer:

(a)

Expln. Marketing Mix is the set of marketing tools that a firm uses to pursue its marketing objectives in a target market.

Q.16 On the basis of shopping efforts involved, the products are classified as___________.

a. Convenience Products

b. Shopping Products

c. Speciality Products

d. All of the above.

Answer:

(d)

Q.17 Industrial Products are those products, which are used as inputs in producing other products. These are broadly classified into

a. Materials and Parts

b. Capital Items

c. Supplies and Business Services

d. All of the above.

Answer:

(d)

Expln. Industrial products are meant for non-personal and business use for producing other products.

Q.18 Brand mark appears in the form of a __________.

a. Symbol or Design.

b. Distinct colour scheme or lettering.

c. Both 1 and 2.

d. None of the above.

Answer:

(c)

Expln. Brand or part of a brand that is given legal protection is called trademark.

Q.19 What are the three different levels of packaging

a. Primary Package, Secondary Package, Transport Package.

b. Small Package, Medium Package, Large Package.

c. Economical Package, Subsidised Package, Expensive Package.

d. None of the above.

Answer:

(a)

Expln. Packaging is also helpful in the marketing of goods.

Q.20 Which of the following are the functions of a label

a. Describing the product.

b. Helps in identifying the product or brand.

c. Helps in grading the products into different categories.

d. All of the above.

Answer:

(d)

Expln. Labelling also aids in promotion of the products.

Q.21 Pricing is considered to be ___________.

a. The single most important factor affecting the revenue and profits of a firm

b. An effective competitive weapon.

c. Both 1 and 2

d. None of the above.

Answer:

(c)

Expln. Generally, if the price of a product is increased, its demand comes down.

Q.21 Channels of distribution smoothen the flow of goods by creating ________.

a. Capital Items.

b. Possession, place and time utilities.

c. Sellers

d. None of the above.

Answer:

(b)

Expln. Channels of distribution are set of firms and individuals that take title or assist in transferring title, to particular goods or servicesas it moves from producers to consumers.

Q.23 Which of the following are among the functions performed by middlemen

a. Sorting

b. Product promotion

c. Risk Taking

d. All of the above.

Answer:

(d)

Expln. Apart from the above, accumulation, allocation, assorting and negotiating are also important functions performed by middlemen.

Q.24 Direct distribution channels are those wherein the goods are made directly available by the manufacturers to customers without ________.

a. Involving any intermediary.

b. Involving any import duties.

c. Involving any export duties

d. All of the above.

Answer:

(a)

Q.25 What are the twin objectives of Promotion?

a. Informing potential customers about a product.

b. Persuading them to buy the product.

c. Both 1 and 2.

d. d. None of the above.

Answer:

(c)

Q.26 Which of the following are the merits of advertising

a. Mass reach.

b. Enhancing customer satisfaction.

c. Expressiveness.

d. All of the above.

Answer:

(d)

Expln. Advertising is also a very economical mode of communication if large number of people are to be reached.

Q.27 Which of the following are the most common objections to advertising

a. It adds to cost.

b. Undermines social values.

c. Confuses the buyers.

d. All of the above.

Answer:

(d)

Expln. Most of the criticisms against advertising are not fully true. Advertising is therefore, considered an essential function of marketing.

Q.28 Which of the following does Personal Selling involve

a. Written Presentation.

b. Oral Presentation.

c. Both 1 and 2.

d. None of the above.

Answer:

(b)

Expln. Personal Selling involves oral presentation of messages in the form of conversation with one or more prospective customers for the purpose of making sales.

Q.29 What does Sales Promotion aim at

a. Encouraging buyers to make immediate purchase.

b. Encouraging sellers to focus on advertising only.

c. Encouraging government intervention.

d. All of the above.

Answer:

(a)

Expln. Sales promotion refers to short-term incentives like rebate, discount, etc.

Q.30 Which of the following are true for Publicity

a. It is a non-personal form of communication.

b. It is a non-paid form of communication.

c. Both 1 and 2.

d. None of the above.

Answer:

(c)

Expln. Publicity generally takes place when favourable news is presented in the mass media about a product or service.