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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