Marketing MCQs

Marketing MCQs: This section contains multiple-choice questions on Marketing. All MCQs have
the correct answers and explanations. These MCQs will help students and professionals to test
their skills and to enhance their knowledge of Marketing.

Here, you will find top 70 Marketing MCQs with answers and explanations. These Marketing
multiple-choice questions are helpful for the students and professionals who are studying in
MBA, MMS, BBA, BCom, MCom, and others marketing management related courses. These
questions on Marketing can be practiced, revised, and learned for universities entrance, and
competitive exams.

☑️✍️List of Marketing MCQs

1. Which of these is true about marketing?

A, Marketing is used to promote the product and services

B, Marketing is concerned about the sales only

C, Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and society
at large.

D, Marketing considers only the needs of the organization and not the society

Answer: C) Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers, clients,
partners, and society at large.

Explanation:

Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and society
at large.

2. Which one is not a part of the 4 Ps?

A, Product

B, People

C, Price

D, Place
Answer: B) People

Explanation:

☑️People are a part of the 7 Ps. The concept of the 7 Ps is used in service marketing.

3. Who is the Father of Modern Marketing?

A, Philip Kotler

B, Peter F Drucker

C, Abraham Maslow

D, Raymond Kroc

Answer: A) Philip Kotler

Explanation:

☑️Philip Kotler is the father of modern marketing. He is an American marketing author and
professor emeritus.

4. ____defined marketing as the science and art of exploring, creating, and delivering value to
satisfy the needs of a target market at a profit?

A, Steve Jobs

B, Philip Kotler

C, Peter Drucker

D, Abraham Maslow

Answer: B) Philip Kotler

Explanation:

☑️✍️Philip Kotler is the father of modern marketing. He is an American marketing author and
professor emeritus.

5. The term "Marketing" refers to?

A, Promotion of the product

C, Strategizing and implementing the organization process

D, Set of activities to deliver customer value and satisfaction

Answer: D) Set of activities to deliver customer value and satisfaction

Explanation:

The latest idea of marketing is that it is a set of activities to deliver customer value and
satisfaction. There were different phases when marketing was considered more about
production and selling.

6. ____ is the key term in AMA's definition of marketing?

A, Sales

B, Promotion

C, Value

D, Profit

Answer: C) Value

Explanation:

In its standard definition of marketing, the American Marketing Association focuses on Value to
the customers.

7. Why must the marketers monitor the competitor's activities?

A, The competitor may destroy the organization

B, The competitor may threaten the monopoly position of the company

C, New offerings of a competitor may need alterations in one or more components of the
company's marketing mix.

D, The competitor may be violating the law to gain an advantage

Answer: C) New offerings of a competitor may need alterations in one or more components of
the company's marketing mix

Explanation:
 Monitoring the competitor's activities helps the company to modify its plans and activities to
remain profitable and sustained in the market.

8. Different price points for a different level of quality for a company's related products is a
part of which pricing strategy?

A, Product line pricing

B, Incremental pricing

C, Optional product pricing

D, By-product pricing

Answer: A) Product line pricing

Explanation:

In product line pricing the company adds features to the base product and charges more for the
features, as compared to the base product.

9. In today's time marketing must be understood and developed as?

A, Getting the first mover’s advantage

B, Creating value for the customers

C, Pushing for higher sales and profits

D, Creating innovative products

Answer: B) Creating value for the customers

Explanation:

The concept of marketing has evolved from production to creating value for the customers.
Today the customers don't buy the product simply because they are available, but if they add
value to the customer.

10. Which one of these is an appropriate definition of "want"?

A, The desires of consumers

B, Needs related to society

D, Needs directed to the product

Answer: D) Needs directed to the product

Explanation:

When a buyer sees a gap or problem it is a need. Only when the buyer decides that his need can
be fulfilled by a particular product does it become a want.

11. In the evolution of marketing the production period ended in ?

A, Late 1800s

B,After the second world war

C, In the 1920s

D Early 20th century

Answer: C) In the 1920s

Explanation:

Before the 1920s demand was related to production. The companies focused on producing new
products and a demand was created automatically.

12. According to Philip Kotler marketing is____?

A, A science

B, An art

C, Both science and art

D, None of the above

Answer: C) Both science and art

Explanation:

Marketing, according to Philip Kotler, is neither a science nor an art. It is a mix of both. A smart
marketer understands when to depend on data and when to use intelligence.

13. Which concept holds that consumers will favor the products that are easily available at an
affordable price?
A Production concept

B, Product concept

C, Marketing concept

D, Production cost concept

Answer: B) Product concept

Explanation:

☑️In the Product Concept the marketers believed that if a product is readily available at a lower
price, the customers will prefer to buy it over a product that is difficult to find and expensive.

14. What does the term "marketing" refer to?

A,New product development

B, Advertising and other promotional activities

C, Achieving sales and profit targets

D, Creating customer value and satisfaction

Answer: D) Creating customer value and satisfaction

Explanation:

The latest idea of marketing is to focus on creating customer value and satisfaction. When you
can create value for customers, they will prefer your products and services over others.

15. Which part of the consumer's income interests the marketers?

A, Gross Income

B, Disposable Income

C, Inflationary Income

D, Discretionary Income

Answer: D) Discretionary Income

Explanation:
Discretionary Income is the amount of income that is left for spending or investing after the
customer has paid for the personal necessities and taxes.

16. Catalogues, sponsored events, and digital media presence are closely associated with the
marketing mix activity of?

A, Product development

B, Pricing

C, Promotion

D, Sales

Answer: C) Promotion

Explanation:

These mediums are primarily used to spread awareness among consumers and promote the
products and services among the target consumers.

17. Early adopters and opinion leaders tend to?

A, Buy new products in their circles first and voice their opinion

B, Buy tried and tested products

C, Being from upper class, users from other classes are followers

D, Don’t take risks easily

Answer: A) Buy new products in their circles first and voice their opinion

Explanation:

The early adopters are willing to take the risk and try new things. They often buy new products
in their circles first. They also share their opinions about the products among their social circles.

18. To achieve market expansion a company must?

A, Use distribution channels more effectively

B, Use advertising campaigns more effectively

C, Price their products more strategically

D, All of the above

Explanation:

Focusing on only one or two will not yield the desired results. For market expansion, the
marketer must take a broader approach and focus on all the activities to achieve the goals of
expansion.

19. In an organization strategic marketing planning must begin with?

A, Hiring a senior planning consultant

B, Establishing organizational goals and objectives

C, Writing the mission statement

D, Writing the vision statement

Answer: C) Writing the mission statement

Explanation:

Writing the mission statement is essential to create a successful marketing plan. A well-written
mission statement gives a clear direction and the marketing plan can be developed to achieve
the goals.

20. In the service industry how many Ps comprise the marketing mix?

4 Ps

7 Ps

10 Ps

8 Ps

Answer: B) 7 Ps

Explanation:

The concept of 7Ps is followed in the service industry. The product industry mainly uses 4Ps.

21. Which period worked on the marketing philosophy of "A good product will sell itself"?

A, Marketing

B, Production
 C, Sales

D, Relationship

Answer: B) Production

Explanation:

During the Production Period the marketers focused more on the quality of their products.
Whether the products add value to the customers was not considered much.

22. Which of the following describes "diversification"?

A, New products in new markets

B, New products in existing markets

C, Existing products in an existing market

D, Existing products in new markets

Answer: A) New products in new markets

Explanation:

Diversification is a concept where a company not only focuses on new products but also explores
new markets.

23. Which traits are desired of marketers today?

A, Only creativity

B, Only critical thinking

C, Both creativity and critical thinking

D, Neither creativity nor critical thinking

Answer: C) Both creativity and critical thinking

Explanation:

In today's time a marketer has to be both a creative and critical thinker. With these two
capabilities, the marketer can better understand the consumers and come up with solutions that
add value.

24. What is motive development?

B, The gap between the customer's current state and past state

C, The balance between the customer's actual and desired state

D, The gap between the customer's and his colleague's current state

Answer: A) The imbalance between the customer's actual and desired state in which gap or
problem-solving is recognized

Explanation:

There is always an imbalance between the customer's actual and desired state. A marketer's key
role is to recognize this gap and recognize a feasible solution.

25. Producers, wholesalers, and retailers act as a unified system to form a?

A, Vertical marketing system

B, Horizontal marketing system

C, Traditional marketing system

D, Hierarchical marketing system

Answer: A) Vertical marketing system

Explanation:

The producers, wholesalers, and retailers work in a straight chain and fulfill the task to make the
products available to the end user.

26. Select the strategic marketing planning tool?

A, A BCG matrix

B, Market analysis

C, Consumer analysis and scanning model

D, Market vulnerability/business opportunity analysis

Answer: A) A BCG matrix

Explanation:
BCG matrix uses market share and market growth to understand a product's position in the
market to its competing products.

27. Achieving strategic marketing objectives using marketing plans and strategies is called?

A, Target achievement

B, Marketing implementation

C, Market penetration

D, Goal setting

Answer: B) Marketing implementation

Explanation:

When the marketing goals are achieved through successful utilization of strategies and plans it
is said to be well implemented.

28. Using a successful brand name to launch a new product in a different category is called?

A, Line extension

B, Brand expansion

C, Brand extension

D, Branding

Answer: C) Brand extension

Explanation:

When a company uses an established brand name and launches a new product category that
may or may not relate to the existing product it is called Brand extension.

29. The marketer focuses on product awareness, trial, and expansion in this stage of the
product life cycle?

A, Growth Stage

B, Decline Stage

C, Maturity stage

D, Introduction stage
Answer: D) Introduction stage

Explanation:

At the Introduction stage the marketer should not focus on profits or sales. The main objective
at this stage should be to make customers aware of the product and willing to try it.

30. The major objective of any marketing activity is to?

A, Sell

B, Promote

C, Create

D, Increase awareness

Answer: A) Sell

Explanation:

All marketing activities have one primary objective. This aim is to achieve sales. If the product is
not selling despite all the marketing activities, either the marketing plan or the product is at
fault.

31. When a firm believes that competitive edge depends purely on its ability to innovate, it is
following?

A, Competitive model

B, Conventional model

C, Out-of-the-box thinking

D, None of the above

Answer: B) Conventional model

Explanation:

In the Conventional model a marketer believes that a better product will sell itself. Whether the
product adds value to the customer or not is not a consideration under the conventional model.

32. Which of the following is important for the success of a differentiated product with unique
customer benefits?
A, Early recognition of the need

B, Large scale promotion

C, Product superiority

D, Detailed analysis

Answer: C) Product superiority

Explanation:

WWhen a product is offering some unique benefits to the customers it must be superior to its
counterparts. If the solutions offered are not superior to its competitors, customers may not
show interest in switching to that product.

33. Choose the correct sequence of activities for brand building?

A, Selecting brand elements > Leveraging secondary associations > Developing a marketing
program.

B, Developing marketing program > Selecting brand elements > Leveraging secondary
associations.

C, Leveraging secondary associations > Developing marketing program > Selecting brand
elements.

D, Selecting brand elements > Developing marketing program > Leveraging secondary
associations.

Answer: D) Selecting brand elements > Developing marketing program > Leveraging secondary
associations

Explanation:

Selecting brand elements > Developing marketing program > Leveraging secondary associations.

34. Which marketing channel makes the products available to end users without
intermediaries?

Indirect channel

Direct channel

Dynamic channel
 Flexible channel

Answer: B) Direct channel

Explanation:

In Direct Channel the company does not depend on intermediaries like distributors, wholesalers,
or retailers to make the products available to the customers.

35. One company adjusts its marketing budget by observing another company's budget. This
process is called?

Objective and task method

Competitor analysis

Competitive parity method

Affordable budget allocation

Answer: C) Competitive parity method

Explanation:

A company does competitor analysis and makes changes to its budget and plans to stay
competitive in the market by adjusting to the practices of the competitor.

36. At which stage of the product cycle is the profit typically negative?
 Decline stage

Growth stage

Maturity stage

Growth stage

Answer: D) Growth stage

Explanation:

At the Growth stage the product gains market share and the sales go high. However, a lot of
efforts and expenses are occurred to achieve this growth. The net profit is generally negative at
this stage.

37. Which of the following facts defines the break-even point?

Total revenue is less than the total cost

Total revenue is the same as the total cost

Total profit is more than the total cost

The total cost is less than the total cost

Answer: B) Total revenue is the same as the total cost

Explanation:
A company is said to have achieved the breakeven point when the total revenue generation is
the same as the total cost incurred.

38. The expenses paid to workers for overtime are considered as?

Fixed cost

Variable cost

Dependent cost

Total cost

Answer: B) Variable cost

Explanation:

The overtime done by workers changes and depends on the emphasis to achieve goals. Thus it
qualifies as a Variable cost.

39. During the societal marketing period what was firms' main concern for marketing?

Producing high-quality products

Social and ethical concerns in marketing

Achieving sales target

Understanding consumer insights

Answer: B) Social and ethical concerns in marketing

The companies focused on social and ethical concerns in their marketing activities during this
period. In the current times, the focus has shifted to adding value to the customers.

40. ____is achieved when customer expectations are met regarding the quality of products and
services along with the value-based price?

Quality excellence

Customer satisfaction

Value proposition

None of the above

Answer: B) Customer satisfaction

Explanation:

The customer is satisfied with his purchase when the quality of the product is par with
expectations and he feels he is not being over-charged for the product or the service.

41. Dividing the market into homogeneous groups is called?

Segmentation

Classification
 Analysis

Grouping

Answer: A) Segmentation

Explanation:

In segmentation, the target customers are combined together considering some common
factors like age, income, gender, etc. The ones having similar values are put together and there
is homogeneity in the data.

42. Good marketing is a result of careful planning and ____?

Research

Sales

Execution

Strategies

Answer: C) Execution

Explanation:

A good marketing plan is important to successfully achieve the objective. Execution of a good
plan is equally important to achieve these objectives.
43. Logistics management is mainly concerned about?

Promotion

Production

Supply chain management

Sales

Answer: C) Supply chain management

Explanation:

Logistics management focuses majorly on Supply chain management. It does not cover
production, promotion, or sales.

44. What do you understand by Marketing buzz?

Social marketing

Traditional marketing

Digital marketing

Viral marketing

Answer: D) Viral marketing

Explanation:
Viral Marketing is used by marketers to create a buzz about the product or service in the
market. The aim is to achieve maximum reach and spread the word as fast as possible.

45. Which markets buy goods or services to further process them or use them in the production
process?

Secondary markets

Consumer markets

Government markets

Business markets

Answer: D) Business markets

Explanation:

The Business Markets purchase goods or services, not for consumption. The intent is to use
these products or services and create a new product or service to be sold to the customers.

46. What do you understand by brand loyalty?

Consumer's emotional attachment to the brand

Consumer's social attachment toward the brand

Fulfillment of consumers needs

Feel good factor when using a brand’s product

Explanation:

Consumer's emotional attachment towards a brand. A brand loyal customer has emotional
reasons to buy a product rather than logical reasons.

47. A description of people and their place in society is covered under?

Geographic segmentation

Demographic segmentation

Income group

Age group

Answer: B) Demographic segmentation

Explanation:

Demographic Segmentation describes the target customer with respect to their age, income,
gender, location, and place in society.

48. When a firm sets high initial prices which fall with entry of competitors in the market, it is
called?

Competitive pricing
 Price skimming

Entry barrier

Monopolistic competition

Answer: B) Price skimming

Explanation:

In a Price skimming strategy a company sets high prices for its products eventually reducing the
price to meet the market average.

49. Who gave the concept of Five forces?

Seth Godin

Michael Porter

Tim Ferriss

None of the above

Answer: B) Michael Porter

Explanation:

Michael Porter, the father of modern marketing gave the concept of Five forces to analyze a
company's competitive environment.
50. Which of the following is not a part of Barriers to Entry?

Government policies

Patents

High capital requirements

New Entrants

Answer: D) New Entrants

Explanation:

New Entrants are competitors which bring new dimensions to the market competitors. They are
not a barrier to entry.

51. In the buying process, when a customer recognizes a need or a problem, what is the stage
called?

Information search

Alternative evaluation

Purchase

Need recognition

Answer: D) Need recognition

Explanation:
Need recognition is the stage when a customer realizes a problem and then starts to search for
a solution available in the market.

52. At which stage of the product life cycle do the sales slow down and profits level off or
decline?

Introduction

Growth

Maturity

Decline

Answer: D) Decline

Explanation:

When a product reaches the Decline stage, it is typically characterized by a fall in sales and
subsequent profits. At this stage, the product needs to be renewed or replaced.

53. When adopting a new product, the customer does not go through which of the following?

Interest

Comparison

Culture

Awareness
Answer: C) Culture

Explanation:

A customer product adoption cycle comprises of Awareness > Interest > Evaluation/ Comparison
> Trial > Adoption

54. The evaluation of the difference between total benefits and total costs of one marketing
offer in comparison to competitive offers is known as?

Customer satisfaction

Customer perceived value

Customer expectation

Customer relationship

Answer: B) Customer perceived value

Explanation:

Customer perceived value is a customer's perception of a product's advantages and desirability

55. Which company created Great Value for the customer using technology innovation and
became a game changer?
 Apple

Nokia

Samsung

Oneplus

Answer: A) Apple

Explanation:

While every other company was focusing on new features and technological advancements,
Apple focused on creating great value for the customer through innovation in its products.

56. In general political campaigns are examples of ?

Digital marketing

Social marketing

Personal marketing

Conventional marketing

Answer: C) Personal marketing

Explanation:
While political campaigns talk about social and economical issues they primarily focus on how
the suggested leader will be able to achieve those goals thus becoming an example of Personal
marketing.

57. What is the major factor that differentiates a service from a product?

Availability

Intangibility

Price

Experience

Answer: B) Intangibility

Explanation:

A product can be measured and evaluated on various measurable parameters. On the other
hand, a service cannot be measured on any standard parameters. The acceptance of service as
good or bad purely depends on a customers person experience and expectations.

58. "Everyone likes a Mercedes car but few can buy it."This is an example of?

Demand

Desire

Want

Need
Answer: A) Demand

Explanation:

Need is recognition of a gap or problem. It becomes a Want when the customer decides that the
need can be fulfilled by a specific product. Demand is when the want is backed by purchasing
power.

59. In which technique does a company use the social network on the internet to create the
brand image?

Community outreach

Viral marketing

Social Marketing

Traditional Marketing

Answer: B) Viral marketing

Explanation:

In Viral Marketing a company uses social media platforms to bring awareness and create a
brand image among the masses on a large scale.

60. Re-marketing is used for creating demand for which of the following?

Non-usable product
 Reusable products

The renewed use of existing products

New Products

Answer: C) The renewed use of existing products

Explanation:

When a company tries to reposition an existing product with new uses it is called Re-marketing.

61. What does demographic segmentation stand for?

Geographic locations

Description of people and their place in society

People living in diversified areas

Location of target customers

Answer: B) Description of people and their place in society

Explanation:

Demographic segmentation identifies a market segment based on the physical and social traits
of target customers such as age, gender, income, etc.

62. Choose the factor which is not included as a part of the physical supply?
 Storage

Standardization

Transport

Packaging

Answer: B) Standardization

Explanation:

Standardization is a component of production. The other three are a part of the supply chain.

63. In demographic segmentation which of these factors is not considered?

Age

Income

Interests

Gender

Answer: C) Interests

Explanation:

Demographic segmentation identifies a market segment based on the physical and social traits
of target customers such as age, gender, income, etc.
64. When a customer buys a product without logical thinking, his decision is?

Emotional

Rational

Patronage

All of the above

Answer: A) Emotional

Explanation:

When a customer does not evaluate a product or service based on the merits and price he is
displaying emotional buying behavior.

65. Charging low prices from the introduction stage to gain growth in the market is?

Premium

Penetration

Skimming

Rational pricing

Answer: B) Penetration

Explanation:
At the introduction stage many companies keep their prices low as a part of the strategy to
penetrate the market.

66. Which of the following is also called a supermarket?

Self-service store

Retail store

Hypermarket

All of the above

Answer: A) Self-service store

Explanation:

The concept of supermarkets developed with the idea of Self-service. Where a customer picks
and buys a product without any sales assistance.

67. What is the full form of MPR?

Marketing Public Relations

Monitoring Public Relations

Management of Public Relations

Measurement of Public Relations

Explanation:

Marketing Public Relations focus on building the brand indirectly by engaging in campaigns that
are not purely commercial.

68. Who used the term Meta Marketing for the first time?

Philip Kotler

Eugene J Kelly

Robert Kiyosaki

None of the above

Answer: B) Eugene J Kelly

Explanation:

Eugene J Kelly coined the term Meta marketing during a discussion on the issue of ethics and
science in marketing. This widened the horizon of marketing by including not-for-profit
organizations.

69. Which of the following is the best distribution channel for vacuum cleaners?

Telemarketing
 Retail Stores

Direct Marketing

All of above

Answer: C) Direct Marketing

Explanation:

Direct Marketing is the best distribution channel for vacuum cleaners.

70. E-marketing is a part of which of the following?

E-payment

E-commerce

E-mail marketing

Traditional marketing

Answer: B) E-commerce

Explanation:

E-marketing is an integral part of E-commerce since the E-commerce company works in the
internet space and doesn't have physical stores