Free Marketing Basics MCQs with Answers
29 Marketing Basics MCQs from Introduction to Business, each with the correct answer and a written explanation of why it is correct. Free and unlimited, with no account needed.
Marketing begins with identifying customer needs and ends with creating, communicating and delivering value through exchange. Coverage includes market research, consumer behaviour, segmentation, targeting, positioning and the marketing mix of product, price, place and promotion, with marketing distinguished from selling and advertising.
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29 questions · page 2 of 2
- A. Macro environment
- B. Micro environment
- C. Natural environment
- D. Technological environment
Explanation: The micro environment consists of forces closely connected with the firm's ability to serve customers.
Correct answer: Micro environment- A. Market share and sales growth
- B. Sales revenue and production cost
- C. Total benefits and total costs
- D. Price level and advertising cost
Explanation: Customers compare the benefits they expect with the total costs of obtaining and using an offering.
Correct answer: Total benefits and total costs- A. Public relations
- B. Corporate branding
- C. Personal selling
- D. Sales promotion
Explanation: Sales promotion uses temporary incentives such as coupons, discounts, samples, or contests to stimulate action.
Correct answer: Sales promotion- A. Provides two-way personal interaction
- B. Uses only printed media
- C. Always costs less per customer
- D. Avoids explaining product benefits
Explanation: Personal selling allows direct communication, questions, feedback, and adaptation to an individual buyer.
Correct answer: Provides two-way personal interaction- A. Offering a retailer a quantity discount
- B. Issuing a press release about company activities
- C. Setting a product's list price
- D. Designing a product package
Explanation: Public relations manages communication and relationships with the public, often through news releases, events, and media coverage.
Correct answer: Issuing a press release about company activities- A. Indirect distribution
- B. Reverse distribution
- C. Intensive distribution
- D. Direct distribution
Explanation: Direct distribution occurs when the producer sells to the final customer without an independent intermediary.
Correct answer: Direct distribution- A. Price elasticity of demand
- B. Cross elasticity of demand
- C. Income elasticity of demand
- D. Advertising elasticity of demand
Explanation: Price elasticity of demand compares the percentage change in quantity demanded with the percentage change in price.
Correct answer: Price elasticity of demand- A. Viral marketing
- B. Trade marketing
- C. Database marketing
- D. Internal marketing
Explanation: Viral marketing seeks rapid person-to-person spread of a message, often through digital and social platforms.
Correct answer: Viral marketing29. In relationship marketing, customer retention is important because retained customers generally:
- A. Require no communication
- B. Create continuing value for the firm
- C. Always pay higher prices
- D. Eliminate the need for promotion
Explanation: Retained customers may purchase repeatedly, provide referrals, and cost less to serve than newly acquired customers.
Correct answer: Create continuing value for the firm