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Q.1
Supplies of oil from an oil well to a refinery are most likely to be transported by:
river or canal
air freight
pipeline
road tankers.
Q.2
A computer manufacturer decides to open a chain of shops to sell products. The reason is:
it is much cheaper to open and run a chain of shops
existing shops were prepared to accept lower profit margins.
the manufacturer wants to control the product marketing
Q.3
A farmer grows vegetables & sells directly to consumers. The reason for this decision is:
the products need to be explained to the consumers
a high quality image will be needed as goods are expensive
the products are perishable
the products will be purchased infrequently.
Q.4
One disadvantage to a producer of using a wholesaler instead of dealing with a retailer is:
the producer has many more firms to deal with
the wholesaler’s profit will raise prices of the product
the producer will have to make many more deliveries
the producer will have to hold a higher level of stocks.
Q.5
All of the following are part of the normal role of wholesalers except:
breaking bulk quantities to smaller deliveries to retailers
offering credit facilities to the retailers
arranging delivery of the product to retailers
putting goods on display for the consumers
Q.6
One of the advantages of using agents for selling goods in foreign markets is that:
the agent will not take a profit from the sale of goods
the producer will have more direct contact with consumers
the agent will have knowledge of local market conditions
the producer will have complete control over product sales.
Q.7
One disadvantage of the channel of distribution: Producer - Wholesaler - Retailer -Consumer is
the profit taken by intermediaries helps to keep prices low
the producer loses control over how the product is marketed
the producer has to hold high stocks of the finished goods
consumers find it hard to return faulty goods to the firm
Q.8
Products sold over the internet will use which of the following channels of distribution?
Producer - Consumer
Producer - Wholesaler - Retailer - Consumer
Producer- Agent - Retailer - Consumer
Producer - Retailer - Consumer
Q.9
One of the advantages of the channel of distribution shown in question 3 is that:
a large delivery can be broken into a smaller quantity
the absence of intermediaries helps to keep the price down
the producer does not have the cost of holding stocks
the consumer can see the products that are for sale.
Q.10
The definition of ‘channel of distribution’ is:
the means of transport used between factory and retail shop
the firms involved in passing a product to the customer
the way in which a product is transported around a factory
the road network between the factory and the retail shops.
Q.11
Place is an important part of the marketing mix because:
consumers must be in the right place to buy the product
the product must be ready for consumers in the right place
advertising should be in the right place
if the product is in place, it will not be successful
Q.12
Which of the following is NOT an example of public relations?
promotion of a football team
donations by the firm to charity
advertising on national radio
letting a newspaper journalist try a product out
Q.13
Personal selling is most likely to be used forwhich of the following products?
daily newspaper
bars of chocolate
food products from a supermarket
business computers
Q.14
One of the advantages of sales promotion is that it:
encourages consumers to buy the product more often
informs the public of a new product
allows the firm to lower the price
does not cost the firm anything, unlike advertising.
Q.15
All of the following are important when considering which method ofpromotion to use except:
the stage of the product life cycle the product is in
the total promotional budget
the target audience (or market) being aimed at
the packaging of the product
Q.16
Which of the following is an example of sales promotion?
advertising a new product on television
using specialist magazines to advertise the product
billboards and posters
special offers and free gifts
Q.17
A firm is set to launch a new high energy sports drink. Which method of promotion would it use?
national television advertising during the Olympic Games
sports magazines with a national coverage
national newspapers
a local radio station
Q.18
If a toy retailer wants to inform potential consumers of its large product range. It would use:
billboards and posters
children’s television
evening radio programmes
national newspapers
Q.19
If a firm wanted to advertise the technical details of its products, it would use:
a business newspaper
billboards and posters
radio
cinema adverts
Q.20
One of the aims of promotion is to:
lower the price of the product
update the product
inform consumers about the product
to lower the costs of producing the product
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