Free Marketing MCQs with Answers

• A. sales budget
• B. marketing budget
• C. demand budget
• D. competitor's budget

Explanation: A sales budget estimates the sales volume and revenue expected during a future period and uses that estimate for planning.

• A. market development system
• B. market record system
• C. marketing intelligence system
• D. market information system

Explanation: A marketing intelligence system gathers ongoing information about competitors, retailers, customers, and market conditions, including…

• A. share penetration index
• B. profit penetration index
• C. price penetration index
• D. market demand index

Explanation: Comparing a firm's current market share with the share it could potentially achieve indicates its share penetration index.

• A. penetrated market
• B. potential market
• C. target market
• D. available market

Explanation: The target market is the specific group of customers a company selects and intends to serve.

• A. exponential smoothing
• B. time series smoothing
• C. statistical smoothing
• D. sales forecast

Explanation: Exponential smoothing combines earlier sales information with the most recent sales, giving greater weight to recent observations.

• A. demographic environment analysis
• B. geographic environment analysis
• C. economic environment analysis
• D. analysis of natural environment

Explanation: Population growth and household patterns describe the size, structure, and composition of human populations, which are demographic…

• A. Company sales potential
• B. product sales potential
• C. market demand potential
• D. forecasted sales

Explanation: Company sales potential is the sales limit a company can approach when its marketing effort increases relative to competitors.

• A. market demand
• B. product demand
• C. services demand
• D. customer buying power

Explanation: Market demand is the total quantity of a product bought by a defined group of customers in a specified geographic area and period.

• A. raw material budgeting
• B. product budgeting
• C. sales budget
• D. quota system

Explanation: A sales budget is often fixed slightly below the sales forecast so that targets remain realistic rather than assuming the entire forecast…

• A. total demand potential
• B. current demand
• C. total market potential
• D. total production potential

Explanation: Total market potential is estimated by multiplying the number of potential buyers by the average quantity each buyer may purchase.

• A. external record
• B. private record
• C. public record
• D. internal record

Explanation: Sales information systems and customer databases are internal records because the company creates and controls these data for planning and…

• A. expected
• B. maximum
• C. minimum
• D. None of above

Explanation: A market forecast is the expected level of market demand under stated economic and marketing conditions.

• A. horizontal axis
• B. vertical axis
• C. market equilibrium point
• D. Company's equilibrium point

Explanation: In a market demand function, industry marketing expenditure is placed on the horizontal axis, while the resulting market demand is shown…

• A. potential market
• B. available market
• C. target market
• D. penetrated market

Explanation: A potential market consists of people who show interest in an offering but may not yet have access to it.

• A. marketing intelligence system
• B. market development system
• C. market record system
• D. market information system

Explanation: A marketing intelligence system uses organized sources and procedures to collect ongoing information about market and competitive…

• A. low brand awareness
• B. low availability
• C. high price
• D. all of the above

Explanation: A low share-penetration index may result from weak brand awareness, limited availability, or a price that discourages purchase.

• A. marketing intelligence on internet
• B. field work
• C. marketing management
• D. building marketing records

Explanation: Review and expert-opinion websites provide external information about customers, competitors and products, so they are part of…

• A. econometric analysis
• B. exponential analysis
• C. economic analysis
• D. market analysis

Explanation: Econometric analysis uses a set of equations to represent relationships among economic and market variables in a statistical system.

• A. market penetration index
• B. target market index
• C. potential market index
• D. available market index

Explanation: The market penetration index compares actual current demand with the total potential demand, showing how much of the possible market has…

• A. time-series analysis
• B. exponential ratio method
• C. exponential smoothing
• D. econometric analysis

Explanation: Time-series analysis, exponential smoothing and econometric analysis are established methods of forecasting from past sales data.