What is the STP process in marketing?

STP stands for Segmentation (dividing the market into groups with similar needs), Targeting (selecting which segment(s) to serve), and Positioning (determining how your product will be perceived relative to competitors in the minds of the target segment). STP is the foundation of marketing strategy.

What is the consumer buying decision process?

The five-stage consumer buying decision process is: (1) Problem recognition, (2) Information search, (3) Evaluation of alternatives, (4) Purchase decision, and (5) Post-purchase behaviour. Marketers target different stages — cognitive dissonance occurs at stage 5 and must be addressed through reassurance.

What is the Ansoff Matrix?

The Ansoff Matrix shows four growth strategies: Market Penetration (existing product, existing market — lowest risk), Product Development (new product, existing market), Market Development (existing product, new market), and Diversification (new product, new market — highest risk).

A brand is a name, symbol, or design that identifies a seller's product and differentiates it from competitors. Brand equity is the added value a strong brand gives to a product. Brand loyalty reduces price sensitivity and creates competitive advantage. Branding creates the perception that differentiates commodities from premium products.

Marketing Principles Practice Questions 2026

Question 01 of 150

What is marketing?

Explanation: Marketing (AMA definition): goes beyond advertising/sales. Customer value creation, relationship management, understanding needs before producing. Drucker: marketing makes selling superfluous.

Question 02 of 150

What is the marketing mix (4Ps)?

Explanation: 4Ps (McCarthy, 1960): Product (what), Price (how much), Place (where/how), Promotion (how communicated). Extended to 7Ps for services: + People, Process, Physical Evidence.

Question 03 of 150

What are the 7Ps of the marketing mix?

Explanation: 7Ps: Booms and Bitner (1981) extended 4Ps for services marketing. People (frontline staff), Process (service delivery consistency), Physical Evidence (environment, branding, certificates).

Question 04 of 150

What is market segmentation?

Explanation: Segmentation bases: demographic (age, gender, income), geographic (region, country), psychographic (lifestyle, values), behavioural (usage, loyalty, benefits sought). Must be: measurable, accessible, substantial, actionable.

Question 05 of 150

What is targeting?

Explanation: Targeting strategies: undifferentiated (same mix to all — Coca-Cola). Differentiated (different mixes for different segments). Concentrated/niche (one segment — Rolls-Royce). Micromarketing (individual customisation).

Question 06 of 150

What is positioning?

Explanation: Positioning: what you want customers to think/feel about your brand vs competition. Positioning statement: 'For [target], [brand] is the [frame of reference] that [point of difference] because [reason to believe].'

Question 07 of 150

What is a positioning statement?

Explanation: Positioning statement format: 'For [target customer], [brand] is the only [category] that provides [key benefit] because [proof point].' Internal document guiding marketing decisions.

Question 08 of 150

What is a value proposition?

Explanation: Value proposition: 'We help [customer] to [achieve outcome] by [what you do], unlike [alternatives].' Answers: why me, why now, why not competitor. Foundation of marketing communications.

Question 09 of 150

What is a SWOT analysis in marketing?

Explanation: SWOT: Strengths/Weaknesses (internal, controllable). Opportunities/Threats (external, macro environment). Use: identify match (strength meets opportunity) and conversion (convert weakness/threat).

Question 10 of 150

What is the PESTLE framework?

Explanation: PESTLE: systematic macro-environment scan. Political (regulation, trade), Economic (growth, interest, inflation), Social (demographics, culture), Technological (innovation, digital), Legal, Environmental. Shapes marketing opportunities and threats.

Question 11 of 150

What is Porter's Five Forces?

Explanation: Porter's Five Forces (1979): strong forces → unattractive industry (low profitability). Use: assess industry before entering, understand where to compete, identify strategic options.

Question 12 of 150

What is consumer behaviour?

Explanation: Consumer behaviour: influences: cultural (culture, subculture, social class), social (reference groups, family, roles), personal (age, lifestyle, personality), psychological (motivation, perception, learning, attitudes).

Question 13 of 150

What is Maslow's hierarchy and its marketing application?

Explanation: Marketing application: physiological (food, shelter products), safety (insurance, security systems), social (social media, community brands), esteem (luxury goods, recognition), self-actualisation (adventure, learning, creativity).

Question 14 of 150

What is the buying decision process?

Explanation: Buyer decision process: Problem recognition (need identified) → Information search (internal/external) → Evaluation (criteria, alternatives) → Purchase → Post-purchase (satisfaction/dissonance). Marketer can influence each stage.

Question 15 of 150

What is cognitive dissonance in marketing?

Explanation: Cognitive dissonance: 'Did I make the right choice?' Higher with: high value, infrequent purchase, many alternatives, irreversibility. Reduce: warranties, case studies, after-sales service, confirmation email.

Question 16 of 150

What is the product lifecycle (PLC)?

Explanation: PLC: Introduction (high cost, low sales, build awareness). Growth (rising sales, competition enters). Maturity (peak sales, high competition, defend share). Decline (falling sales, cost cutting, harvest or discontinue).

Question 17 of 150

What is a brand?

Explanation: Brand: Aaker's brand equity: brand awareness, brand associations, perceived quality, brand loyalty, proprietary assets. Brand equity: premium price, loyalty, extensions, channel leverage, competitive advantage.

Question 18 of 150

What is brand equity?

Explanation: Brand equity (Keller's CBBE model): Salience → Performance/Imagery → Judgements/Feelings → Resonance. Strong brand equity: Apple, Nike, Coca-Cola. Builds over time through consistent, relevant, differentiated brand.

Question 19 of 150

What is a product line vs product mix?

Explanation: Product line: shampoo range. Product mix: all P&G lines (shampoo, soap, toothpaste). Width: number of lines. Length: total products. Depth: variants per product. Consistency: how closely related.

Question 20 of 150

What is pricing strategy?

Explanation: Pricing strategies: cost-plus (markup on cost), competitor-based (match/beat), value-based (price = customer value), penetration (low entry price), skimming (high entry price for innovators), freemium.

Question 21 of 150

What is penetration pricing?

Explanation: Penetration: Netflix original model, many FMCG launches. Risks: low margin, hard to raise price later, attracts price-sensitive customers who may switch when price rises. Works when economies of scale achievable.

Question 22 of 150

What is price skimming?

Explanation: Skimming: iPhone, PlayStation launches. Works when: strong brand, inelastic early adopter demand, significant differentiation, easy to reduce price later. Attracts competition if margins are visible.

Question 23 of 150

What is distribution (place) in the marketing mix?

Explanation: Distribution: direct (own stores/website) or indirect (wholesalers, retailers, agents). Channel length: zero (direct), one (retailer), two (wholesaler+retailer). Omnichannel: seamless experience across channels.

Question 24 of 150

What is an integrated marketing communication (IMC)?

Explanation: IMC: all channels work together for consistent brand message. Advertising (awareness), PR (credibility), sales promotion (impulse), direct marketing (personalised), digital/social (engagement, targeting).

Question 25 of 150

What is advertising?

Explanation: Advertising: advantages: reach, control of message, brand building. Disadvantages: expensive, low credibility (vs PR), declining traditional media reach. Digital: targeted, measurable, cost-per-click.

Question 26 of 150

What is public relations (PR)?

Explanation: PR: earned media (news coverage, reviews, influencers). Higher credibility than advertising. Tools: press releases, media relations, crisis communications, sponsorship, events, CSR. Downside: less control.

Question 27 of 150

What is sales promotion?

Explanation: Sales promotions: consumer promotions (pull — coupon, sample, competition). Trade promotions (push — dealer discounts, incentives). Event marketing. BOGOF (buy one get one free). Short-term boost but no brand equity building.

Question 28 of 150

What is content marketing?

Explanation: Content marketing: blog posts, videos, podcasts, infographics, white papers. Attracts audience via SEO, social sharing. Builds credibility, nurtures leads. Content funnel: awareness (blogs) → consideration → decision.

Question 29 of 150

What is SEO?

Explanation: SEO: on-page (keywords, content quality, title tags, meta descriptions), off-page (backlinks from authoritative sites), technical (site speed, mobile-friendliness, structured data). Long-term organic traffic.

Question 30 of 150

What is digital marketing?

Explanation: Digital marketing: paid (SEM/Google Ads, social ads, display), owned (website, social pages, email list), earned (SEO, PR, social shares, reviews). Digital: measurable (CTR, conversion rate, ROAS).

Question 31 of 150

What is a customer journey map?

Explanation: Customer journey map: awareness → consideration → purchase → retention → advocacy. Touchpoints: ad, website, store, email, support. Identify gaps, moments of truth, and improvement opportunities.

Question 32 of 150

What is customer relationship management (CRM)?

Explanation: CRM: Salesforce, HubSpot, Microsoft Dynamics. Tracks: customer interactions, purchase history, preferences. Enables: personalisation, targeted communication, sales pipeline management, service resolution.

Question 33 of 150

What is the concept of market orientation?

Explanation: Market orientation: customer-centric. vs Product orientation (make best product), Production orientation (make cheaply), Sales orientation (sell what we make). Market: understand needs → create superior value.

Question 34 of 150

What is market research?

Explanation: Market research: primary (new data: surveys, focus groups, observations, experiments) and secondary (existing data: reports, sales data, government statistics). Qualitative (why/how) and quantitative (how many/much).

Question 35 of 150

What is a focus group?

Explanation: Focus group: depth of insight, flexible exploration. Limitations: groupthink, not representative, time-consuming, expensive, depends on facilitator skill. Complement with quantitative (survey, sales data).

Question 36 of 150

What is a survey in market research?

Explanation: Survey: online (SurveyMonkey, Google Forms), telephone, face-to-face, postal. Large sample → representative. Closed questions (quantitative), open questions (qualitative). Sampling: random, stratified, quota.

Question 37 of 150

What is customer lifetime value (CLV)?

Explanation: CLV = (Average purchase value × Purchase frequency × Customer lifespan) - CAC. High CLV: justify higher acquisition cost (CAC), prioritise retention. Amazon Prime: dramatically increases CLV.

Question 38 of 150

What is customer acquisition cost (CAC)?

Explanation: CAC: marketing spend / new customers. Healthy ratio: CLV > 3× CAC. High CAC relative to CLV: unsustainable growth. Reduce CAC: organic content, referrals, word-of-mouth vs paid advertising.

Question 39 of 150

What is the concept of a brand extension?

Explanation: Brand extension: Virgin (airlines → music → trains → banking). Risk: brand dilution if extension fails or doesn't fit. Line extension: same category, new variant (Coke Zero). Brand extension: new category.

Question 40 of 150

What is social media marketing?

Explanation: Social media marketing: Facebook, Instagram, X (Twitter), LinkedIn, TikTok, YouTube. Organic (unpaid content, community building) + Paid (targeted ads). KPIs: reach, engagement rate, CTR, conversions.

Question 41 of 150

What is influencer marketing?

Explanation: Influencer marketing: mega (1m+), macro (100k-1m), micro (10k-100k), nano (<10k). Micro: higher engagement rate, more authentic, cheaper. Measure: CPM, engagement, sales link. Disclosure: #ad required.

Question 42 of 150

What is guerrilla marketing?

Explanation: Guerrilla marketing (Levinson, 1984): flash mobs, graffiti art, pop-ups, street stunts. Low cost, high impact. Works if: creative, relevant to brand, shareable, targeted at right place/time. Risk: if misunderstood.

Question 43 of 150

What is a market?

Explanation: Market: total market (all potential buyers), target market (segment chosen), served market (can reach). Market size: measured in volume or value. Market share = brand sales / total market sales.

Question 44 of 150

What is the BCG matrix?

Explanation: BCG matrix: Stars (high growth, high share — invest). Cash Cows (low growth, high share — harvest). Question Marks (high growth, low share — decide: invest or divest). Dogs (low growth, low share — divest/harvest).

Question 45 of 150

What is an Ansoff matrix?

Explanation: Ansoff (1957): Market Penetration (existing product, existing market — lowest risk). Market Development (existing product, new market). Product Development (new product, existing market). Diversification (new product, new market — highest risk).

Question 46 of 150

What is relationship marketing?

Explanation: Relationship marketing: customer retention > acquisition (5-25× more expensive to acquire). Loyalty programmes, personalised communication, exceptional service. NPS (Net Promoter Score): measure relationship strength.

Question 47 of 150

What is the Net Promoter Score (NPS)?

Explanation: NPS = % Promoters - % Detractors. Passives (7-8) excluded. +50 = excellent. NPS correlates with growth. Bain & Company and Satmetrix. Action: understand why detractors, address, convert passives.

Question 48 of 150

What is above-the-line vs below-the-line marketing?

Explanation: ATL (Above-The-Line): broad reach, brand awareness, high cost, hard to track. BTL: targeted, measurable, personalised, closer to purchase decision. Through-the-Line (TTL): combines both. Digital blurs the distinction.

Question 49 of 150

What is omnichannel marketing?

Explanation: Omnichannel: customer can start journey online, continue in-store, complete on mobile. vs Multichannel (have multiple channels but not integrated). Click-and-collect, buy online return in-store. Seamless experience.

Question 50 of 150

What is programmatic advertising?

Explanation: Programmatic: DSP (demand-side platform) bids for ad impressions in real-time based on audience targeting. More efficient than manual buying. Enables: behavioural targeting, retargeting, lookalike audiences.

Question 51 of 150

What is email marketing?

Explanation: Email marketing: ROI ~$42 per $1 spent (DMA). Best practices: permission-based list, segmentation, personalisation, mobile-optimised, clear CTA, A/B testing subject lines. GDPR/POPIA: consent required.

Question 52 of 150

What is a conversion rate in digital marketing?

Explanation: Conversion rate = Conversions / Total visitors × 100. Low CRO: landing page optimisation, CTA improvement, reduce friction. A/B testing. Average e-commerce CR: 1-3%. Higher = better ROI.

Question 53 of 150

What is A/B testing in marketing?

Explanation: A/B test: show version A to group 1, version B to group 2. Measure: conversion rate, CTR, open rate. Statistical significance required before concluding winner. Only test one variable at a time.

Question 54 of 150

What is a marketing funnel?

Explanation: Marketing funnel: top (awareness — broad audience), middle (consideration — narrowing), bottom (conversion — purchase intent). Content at each stage: blogs/ads (top), webinars/case studies (middle), demos/trials (bottom).

Question 55 of 150

What is brand awareness?

Explanation: Brand awareness: aided (Do you know brand X? Yes/No) vs unaided (Name a sports shoe brand). Top-of-mind: first brand recalled. Measured by survey. Foundation of brand equity pyramid.

Question 56 of 150

What is market penetration in the Ansoff matrix?

Explanation: Market penetration: lowest risk Ansoff strategy. Tactics: price reduction, increased advertising, improved distribution, loyalty programmes. Gain share from competitors or grow market.

Question 57 of 150

What is a loyalty programme?

Explanation: Loyalty programmes: points (Clicks ClubCard, Pick n Pay Smart Shopper SA), tier-based (airline frequent flyer), cashback. Key: rewards must be meaningful, earning must be easy, data insights enable personalisation.

Question 58 of 150

What is cause-related marketing?

Explanation: Cause marketing: Yoplait and breast cancer, TOMS buy-one-give-one. Benefit: brand differentiation, customer goodwill, genuine social impact. Risk: greenwashing perception if not authentic.

Question 59 of 150

What is competitive advantage in marketing?

Explanation: Competitive advantage: Porter (1985). Cost leadership: lowest cost producer. Differentiation: unique value customers pay premium for. Focus: serve niche better than broad competitors. Sustainable: hard to imitate.

Question 60 of 150

What is the concept of brand loyalty?

Explanation: Brand loyalty: behavioural (buying same brand) vs attitudinal (preference + commitment). Emotional loyalty: stronger, more resistant to competitive pricing. Builds over time through consistent quality, experience, values.

Question 61 of 150

What is a product differentiation strategy?

Explanation: Differentiation: Apple (design+ecosystem), Volvo (safety), BMW (driving experience). Sustainable differentiation: hard to copy, valued by customers, communicated effectively.

Question 62 of 150

What is push vs pull marketing strategy?

Explanation: Push: trade promotions, sales force, B2B. Pull: consumer advertising, social media, content. Most brands use both. New FMCG brands: often push to gain shelf space first, then pull with advertising.

Question 63 of 150

What is a market development strategy?

Explanation: Market development: existing product, new market. Geographic: Woolworths expanding to Africa. New segment: marketing baby shampoo to adults. Higher risk than penetration but uses proven product.

Question 64 of 150

What is the difference between a brand and a product?

Explanation: Theodor Levitt: 'People don't buy products, they buy benefits and experiences.' Brand is the promise, emotional connection, trust. Same water (product) → Evian vs supermarket brand (different brand).

Question 65 of 150

What is a market research brief?

Explanation: Research brief: defines scope. Agency responds with proposal (methodology, sample, timeline, cost). Client approves → fieldwork → analysis → report/presentation. Both parties must agree on objectives first.

Question 66 of 150

What is an editorial calendar in content marketing?

Explanation: Editorial calendar: planned months ahead. Content themes aligned with: product launches, seasons, awareness days, company events. Who creates, who approves, which channel, what format. Consistency builds audience.

Question 67 of 150

What is share of voice (SOV)?

Explanation: SOV = Brand ad spend / Total category ad spend. Excess SOV (ESOV = SOV > market share): brand likely to grow (Binet & Field research). Under-invest: share likely to fall. Long-term metric.

Question 68 of 150

What is customer satisfaction?

Explanation: CSAT: 'How satisfied were you?' (1-5 or 1-10). Track over time, segment by channel/product. Dissatisfied customers: tell 9-16 people (TARP). Online reviews amplify. Act on negative feedback.

Question 69 of 150

What is experiential marketing?

Explanation: Experiential marketing: pop-up experiences, brand activations, interactive installations. Red Bull events, Nike run clubs. Goal: emotional engagement, social sharing, brand association. Measure: attendance, social reach, sentiment.

Question 70 of 150

What is the role of data analytics in modern marketing?

Explanation: Marketing analytics: attribution modelling (which channel drives conversion), customer segmentation, predictive CLV, A/B test analysis, campaign ROI measurement. Tools: Google Analytics, Adobe Analytics, Tableau.

Question 71 of 150

What is retargeting?

Explanation: Retargeting: cookie or pixel tracks visitor. Visitor sees ads on other sites. Recovers lost leads. 70% of website visitors who are retargeted convert more (AdRoll). Frequency cap: avoid ad fatigue.

Question 72 of 150

What is a unique selling proposition (USP)?

Explanation: USP (Reeves, 1940s): single, clear, compelling reason to buy. Head & Shoulders: 'Clinically proven to remove dandruff.' M&Ms: 'Melts in your mouth, not in your hands.' Focused, memorable, benefit-led.

Question 73 of 150

What is mass marketing?

Explanation: Mass marketing: Coca-Cola classic approach. Efficient for commodities, large audiences. Declining relevance: digital enables affordable personalisation. Mass customisation: mass production of personalised variants.

Question 74 of 150

What is price elasticity's importance to marketers?

Explanation: Marketing pricing: if elastic demand (PED>1): lower price increases revenue. If inelastic (PED<1): higher price increases revenue. Premium brands: create inelastic demand through differentiation. Pricing power.

Question 75 of 150

What is affiliate marketing?

Explanation: Affiliate marketing: Amazon Associates (most famous). Publisher promotes product, earns commission on sale. Win-win: company pays only for results. Track via unique affiliate links or codes. ROI clear.

Question 76 of 150

What is green marketing?

Explanation: Green marketing: eco-friendly products, sustainable packaging, carbon offset, certified claims. Greenwashing risk: false environmental claims. B Corp certification: credible green claim. Growing consumer demand for sustainability.

Question 77 of 150

What is place branding?

Explanation: Place branding: 'Cool Britannia', 'Incredible India', Cape Town '100% South Africa'. Stakeholders: tourism boards, governments, businesses. Challenges: multiple stakeholders, limited control over reputation.

Question 78 of 150

What is product positioning and how does it differ from product features?

Explanation: Features (what product is/has) vs positioning (what it means). Volvo has safety features (feature) → positioned as the safest car (position). Positioning lives in customer's mind, not in the product.

Question 79 of 150

What is the concept of brand architecture?

Explanation: Brand architecture: Branded house (master brand + sub-brands: Google Maps, Google Docs). House of brands (independent brands: P&G's Tide, Ariel, Pampers). Endorsed (Marriott International: Courtyard by Marriott). Each has advantages.

Question 80 of 150

What is the concept of product bundling?

Explanation: Bundling: pure bundling (only sold as bundle), mixed (also sold separately). Example: Microsoft Office Suite. Fast food value meals. Telecoms: triple play (TV + broadband + phone). Increases value perception.

Question 81 of 150

What is the halo effect in marketing?

Explanation: Halo effect: Apple iPhone success → positive perception of Apple Watch, MacBook. Brand umbrella: strong parent brand aids line/brand extensions. Reverse: negative event can harm all brand products.

Question 82 of 150

What is social proof in marketing?

Explanation: Social proof (Cialdini): 5-star ratings, 'Trusted by 1 million customers', testimonials, influencer use, press logos, social follower counts. Most powerful at consideration/decision stage of funnel.

Question 83 of 150

What is the concept of micro-moments in digital marketing?

Explanation: Micro-moments (Google): I-want-to-know (content marketing), I-want-to-go (local SEO, Google My Business), I-want-to-do (how-to content), I-want-to-buy (SEM, retargeting, easy checkout). Mobile intent signals.

Question 84 of 150

What is marketing automation?

Explanation: Marketing automation: HubSpot, Marketo, Mailchimp. Drip campaigns: welcome series, abandoned cart, re-engagement. Lead scoring: prioritise sales follow-up. Triggers: page visit, download, email open.

Question 85 of 150

What is the concept of price anchoring?

Explanation: Anchoring: original price crossed out next to sale price. Restaurant menus: expensive item makes medium-priced items seem reasonable. SaaS pricing: 3 tiers — middle option appears most rational.

Question 86 of 150

What is a perceptual map?

Explanation: Perceptual map: 2 axes (e.g., price vs quality, traditional vs modern). Plot brands based on consumer perception (survey data). Identify white space (underserved positioning). Guides repositioning decisions.

Question 87 of 150

What is the concept of co-branding?

Explanation: Co-branding: Nike + Apple (Nike+), Red Bull + GoPro, Adidas + Parley (ocean plastic). Both brands must be complementary, neither brand devalued. Co-marketing: joint campaigns without joint product.

Question 88 of 150

What is aspirational marketing?

Explanation: Aspirational: luxury brands (Rolex: success), fitness brands (Nike: athlete within), travel (Airbnb: belong anywhere). Aspirational gap: between current and desired self. Product bridges that gap.

Question 89 of 150

What is voice of the customer (VoC)?

Explanation: VoC: qualitative + quantitative. Sources: surveys, reviews, social media, support tickets, focus groups. Kano model: basic needs (must-haves), performance needs (more = better), excitement features (delighters).

Question 90 of 150

What is the marketing planning process?

Explanation: Marketing plan: where are we now? (analysis). Where do we want to be? (objectives — SMART). How will we get there? (strategy + tactics). How do we get there? (action plan, budget). How do we know? (KPIs, evaluation).

Question 91 of 150

What is direct marketing?

Explanation: Direct marketing: targeted, measurable, response-driven. Mail: declining but still used. Email: high ROI. SMS: high open rate (98%). Telemarketing: declining due to opt-out lists. Must comply with POPIA/GDPR opt-in rules.

Question 92 of 150

What is the RACE digital marketing framework?

Explanation: RACE framework (Smart Insights): Reach (build awareness), Act (encourage interaction), Convert (achieve sales), Engage (build loyalty). Useful for structuring digital marketing plan and KPI measurement.

Question 93 of 150

What is remarketing?

Explanation: Remarketing = Google's term for retargeting. Google Remarketing Tag placed on website. Custom audience list built. Ads shown across Google Display Network, Gmail, YouTube. Similar to Facebook Custom Audiences.

Question 94 of 150

What is the long tail in marketing?

Explanation: Long tail (Anderson, 2004): Netflix, Amazon, Spotify profit from niche content. Low distribution costs online make niche viable. Marketing implication: SEO for long-tail keywords, niche content, niche product lines.

Question 95 of 150

What is native advertising?

Explanation: Native advertising: sponsored articles, promoted social media posts that look organic. FTC/ASA: must be labelled 'Sponsored' or 'Ad'. High engagement if relevant. Blurs line between editorial and advertising.

Question 96 of 150

What is a customer persona?

Explanation: Customer persona (buyer persona): 'Marketing Manager Mary — 35, overwhelmed by data, needs ROI proof, researches on LinkedIn.' Used to: create targeted content, guide product decisions, personalise messaging.

Question 97 of 150

What is a marketing budget allocation?

Explanation: Budget allocation: channel ROI analysis, historical performance, strategic priorities. Digital vs traditional balance. Zero-based budgeting vs incremental. Binet & Field: 60% brand building (long-term), 40% activation (short-term).

Question 98 of 150

What is social listening?

Explanation: Social listening: Brandwatch, Sprout Social, Hootsuite Insights. Monitor: brand mentions, sentiment, competitor mentions, trending topics, influencer conversations. Use: product feedback, crisis early warning, content ideas.

Question 99 of 150

What is a key performance indicator (KPI) in marketing?

Explanation: Marketing KPIs: brand awareness (survey), website traffic (Google Analytics), conversion rate, CAC, CLV, NPS, social engagement rate, email open rate, ROAS (Return on Ad Spend). Different KPIs for different funnel stages.

Question 100 of 150

What is the concept of emotional vs rational appeal in advertising?

Explanation: Binet & Field: emotional campaigns build long-term brand; rational campaigns drive short-term activation. Best: emotion + rational. 95% of purchasing decisions: subconscious/emotional (Zaltman). Emotion = memorability.

Question 101 of 150

What is out-of-home (OOH) advertising?

Explanation: OOH: high reach, local, contextually relevant. Digital OOH (DOOH): dynamic content, time/weather/event triggered. Difficult to target precisely or measure accurately. Good for: brand awareness, geographic targeting.

Question 102 of 150

What is pricing psychology?

Explanation: Pricing psychology: R9.99 vs R10 (left-digit effect). Decoy: add inferior third option making target option seem better value. Premium pricing: high price signals quality. 0% finance: reduces price sensitivity.

Question 103 of 150

What is a brand audit?

Explanation: Brand audit: external (customer survey, social listening, competitive analysis) + internal (brand values, strategy, employee understanding). Output: brand health assessment, gaps, strategic recommendations.

Question 104 of 150

What is the difference between B2B and B2C marketing?

Explanation: B2B: LinkedIn, account-based marketing (ABM), case studies, thought leadership, trade shows. B2C: social media, influencers, emotional advertising, loyalty programmes. B2B purchase: committee, procurement, formal process.

Question 105 of 150

What is account-based marketing (ABM)?

Explanation: ABM: identify target accounts → research stakeholders → personalise content → coordinated sales+marketing effort. vs lead generation (volume). ABM: higher conversion, bigger deals, longer sales cycle.

Question 106 of 150

What is frequency vs reach in advertising?

Explanation: Reach × Frequency = Gross Rating Points (GRPs). Effective frequency: 3+ exposures for recall (Three-Hit Theory). Diminishing returns at very high frequency (ad fatigue). Balance reach vs frequency with budget.

Question 107 of 150

What is the concept of market share?

Explanation: Market share: value share (revenue) or volume share (units). Relative market share: brand share / largest competitor share. Growing share in declining market vs declining share in growing market: very different situations.

Question 108 of 150

What is the promotion mix?

Explanation: Promotion mix (APSPD): Advertising, Public Relations, Sales Promotion, Personal Selling, Direct Marketing. Digital overlays all. Budget allocation: awareness stage → advertising/PR; decision stage → personal selling/promotion.

Question 109 of 150

What is personal selling?

Explanation: Personal selling: highest persuasion, two-way communication, tailored message, relationship building. Expensive per contact. Best for: high-value products (B2B, luxury, complex solutions), needs analysis required.

Question 110 of 150

What is sponsorship in marketing?

Explanation: Sponsorship: sports (SA Rugby + Springboks, Old Mutual), arts, events, individuals. Benefits: reach, brand association, hospitality. ROI harder to measure than advertising. Ambush marketing: unauthorised association.

Question 111 of 150

What is community marketing?

Explanation: Community marketing: Harley Owners Group (HOG), Nike Run Club, Lego Ideas. Community: peer-to-peer advocacy, product feedback, UGC (user-generated content), self-sustaining engagement.

Question 112 of 150

What is viral marketing?

Explanation: Viral marketing: cannot be guaranteed but designed to encourage sharing. Elements: emotional (humour, inspiration, shock), practical (useful), social currency (makes sharer look good). ALS Ice Bucket Challenge example.

Question 113 of 150

What is the concept of market skimming vs market penetration for new products?

Explanation: New product pricing: Skimming (inelastic demand, strong brand, patent protection, innovators willing to pay premium). Penetration (elastic demand, economies of scale possible, need fast market share growth).

Question 114 of 150

What is an ambassador programme?

Explanation: Brand ambassadors: long-term relationship (vs one-off influencer). Deep brand knowledge. Authentic advocacy. Employee ambassadors: LinkedIn thought leadership. Customer ambassadors: referral programmes, user communities.

Question 115 of 150

What is a landing page in digital marketing?

Explanation: Landing page: remove navigation distractions. Single CTA (Call to Action). Above-the-fold value proposition. Social proof. A/B test elements: headline, image, CTA text, form length. PageSpeed critical for conversion.

Question 116 of 150

What is a call to action (CTA)?

Explanation: CTA: clear, specific, action-oriented, urgent. Placement: above the fold, after key information, multiple in long content. Test: button colour, text, size, placement. Reduce friction: fewer fields, trust signals nearby.

Question 117 of 150

What is marketing ROI?

Explanation: Marketing ROI: challenge: attribution (which channel caused sale?). Last-click attribution: easy but misleading. Multi-touch attribution: more accurate. ROAS (Return on Ad Spend): Revenue / Ad spend. Marketing Mix Modelling for holistic view.

Question 118 of 150

What is attribution modelling in digital marketing?

Explanation: Attribution models: First-click (awareness gets credit). Last-click (easy, common, misleading). Linear (equal credit). Time-decay (recency weighted). Position-based (40-20-40). Data-driven (ML-based). Each tells different story.

Question 119 of 150

What is programmatic TV advertising?

Explanation: Programmatic TV: CTV (Netflix, YouTube, streaming), addressable (Sky AdSmart: different ads to different households watching same show). Enables: better targeting, measurement than traditional broadcast TV.

Question 120 of 150

What is a media mix?

Explanation: Media mix: TV (broad reach, emotional impact), print (credibility), radio (frequency, local), OOH (contextual), digital (targeting, measurement). Media planning: GRPs, CPM, reach/frequency objectives.

Question 121 of 150

What is the role of packaging in marketing?

Explanation: Packaging: Unilever reports packaging as top brand touchpoint for FMCG. Design elements: colour (red = Coca-Cola), typography, materials, shape, size. Sustainability: packaging a growing brand equity driver.

Question 122 of 150

What is a product recall and its marketing impact?

Explanation: Product recall: Johnson & Johnson Tylenol (1982): textbook example. Removed product immediately, communicated transparently, introduced tamper-evident packaging. Trust restored. Contrast: Volkswagen dieselgate — denial = brand damage.

Question 123 of 150

What is the concept of loss leader pricing?

Explanation: Loss leader: supermarkets (bread, eggs, milk at low margin). Purpose: traffic generation, basket size, cross-selling. Risk: customers only buy the loss leader (cherry-picking). Not sustainable as standalone strategy.

Question 124 of 150

What is a product launch strategy?

Explanation: Product launch: pre-launch (anticipation: Apple's secrecy, teasers). Launch (event, PR, ads, content). Post-launch (reviews, community, iteration). Timing: seeding influencers, sync with retail calendars.

Question 125 of 150

What is CPC (cost per click) in digital advertising?

Explanation: CPC: paid per click on your ad. Google Ads: bid-based auction. High competition keywords: high CPC. Quality Score affects actual CPC. Related: CPM (cost per mille/1,000 impressions), CPA (cost per acquisition).

Question 126 of 150

What is earned media?

Explanation: Earned media: most credible (trusted by 92% vs 33% for ads). Tactics: PR, SEO, referral programmes, extraordinary customer experiences that generate organic sharing. Amplified by paid media to expand reach.

Question 127 of 150

What is the share of wallet concept?

Explanation: Share of wallet: existing customers. Cross-sell (complementary products), upsell (premium versions), retention (prevent switching to competitor). Often more profitable to increase SOW than acquire new customers.

Question 128 of 150

What is word-of-mouth (WOM) marketing?

Explanation: WOM: Nielsen: 92% trust recommendations from people they know. Referral programmes (Dropbox doubled users via referral). NPS: identify promoters, activate them. Exceptional experience: most powerful WOM driver.

Question 129 of 150

What is a channel conflict in distribution?

Explanation: Channel conflict: manufacturer launches e-commerce direct → undercuts retail partners → retailers de-list or give less shelf space. Manage via: different product assortments per channel, MAP (Minimum Advertised Price) policies.

Question 130 of 150

What is merchandising?

Explanation: Merchandising: planograms (shelf layout), POS displays, end-caps, product demonstrations, cross-merchandising (place complementary products together). Eye-level = buy level. Retailer slotting fees for prime placement.

Question 131 of 150

What is product life extension?

Explanation: Life extension: Arm & Hammer baking soda (found new uses: fridge deodorant, toothpaste). Nescafé (new packaging, flavours, geographies). Lucozade (repositioned from sick children's drink to sports drink).

Question 132 of 150

What is the concept of price transparency?

Explanation: Price transparency: comparison websites, apps, review sites make price differences visible instantly. Implication: brand must justify premium or compete on price. Value-based positioning becomes more important.

Question 133 of 150

What is a trade show in B2B marketing?

Explanation: Trade shows: Computex (tech), SIAL (food), MIPIM (property). Face-to-face in B2B. Set up impressive stand, pre-arrange meetings, capture leads (badge scanning), follow up quickly. Expensive but high-quality leads.

Question 134 of 150

What is search engine marketing (SEM)?

Explanation: SEM (Google Ads): keyword targeting, ad auction (Quality Score × max bid). Immediate traffic. CPC varies by competition. Best for: capture existing demand. SEO for long-term. Together: dominate search real estate.

Question 135 of 150

What is the marketing concept vs the selling concept?

Explanation: Marketing concept: find what customers need → produce it → profitably satisfy. Selling concept: produce → push hard → overcome resistance → sell. Drucker: goal of marketing = make selling superfluous.

Question 136 of 150

What is a product portfolio matrix?

Explanation: Portfolio analysis: BCG (market growth × relative market share). GE-McKinsey: industry attractiveness × competitive strength (9-box). Purpose: invest in winners, harvest cash cows, divest dogs.

Question 137 of 150

What is sampling as a marketing tactic?

Explanation: Sampling: FMCG launch tactic. In-store samples, door drops, subscription boxes, digital trials (SaaS free tier). Cost: product + distribution. ROI: trial → conversion rate. Red Bull: street sampling built initial brand.

Question 138 of 150

What is the DAGMAR model in advertising?

Explanation: DAGMAR (Colley, 1961): communication objectives must be specific, measurable, assigned to a target audience, and set a time period. Each stage measurable: awareness survey, comprehension test, preference measure, sales.

Question 139 of 150

What is the concept of marketing myopia?

Explanation: Marketing myopia (Levitt, 1960): railroad companies thought they were in 'railroad business' not 'transportation' → lost to cars/planes. Kodak: 'film' not 'capturing memories'. Customer need, not product, defines the business.

Question 140 of 150

What is the concept of service quality (SERVQUAL)?

Explanation: SERVQUAL (Parasuraman et al): Reliability (consistent delivery), Assurance (trust, competence), Tangibles (physical environment), Empathy (caring, personal), Responsiveness (willingness to help). Gap model: perception > expectation = delight.

Question 141 of 150

What is consumer ethnocentrism?

Explanation: Consumer ethnocentrism: CETSCALE measures tendency. 'Buy local' campaigns appeal to this. Implications for international marketing: may need local branding, ingredients, or partnership. SA: some preference for local brands.

Question 142 of 150

What is the concept of transaction cost economics and channel choice?

Explanation: Transaction cost economics: if specialised investment needed, uncertainty high, frequency high → internalise (direct channel). If standardised transaction → use market intermediaries. Applies to make-or-buy decisions in distribution.

Question 143 of 150

What is cross-selling vs upselling?

Explanation: Cross-sell: 'Customers who bought X also bought Y.' Amazon: 35% revenue from cross-sell recommendations. Upsell: 'Upgrade to Premium for just R50 more.' Both increase average order value. Timing: at purchase, not before.

Question 144 of 150

What is a subscription model in marketing?

Explanation: Subscription: Netflix, Spotify, Dollar Shave Club, Hello Fresh. Advantages: predictable revenue, high CLV, data on usage. Key metrics: churn rate, MRR (Monthly Recurring Revenue), LTV:CAC ratio.

Question 145 of 150

What is greenwashing?

Explanation: Greenwashing examples: vague claims ('eco-friendly'), hidden trade-offs (recycled packaging but toxic product), irrelevance (CFC-free when CFCs are banned). Consequences: regulatory action, consumer backlash, brand damage.

Question 146 of 150

What is a product roadmap?

Explanation: Product roadmap: marketing use: plan campaigns around launches, set expectations with customers, coordinate cross-functional activities. Customer-facing roadmap: builds anticipation (Apple's WWDC announcements).

Question 147 of 150

What is competitive intelligence?

Explanation: Competitive intelligence: sources: public filings, press releases, job postings, pricing pages, social media, industry reports, patent filings, customer interviews, reverse engineering. Ethical and legal (vs corporate espionage).

Question 148 of 150

What is an influencer brief?

Explanation: Influencer brief: brand background, campaign objective, target audience, key messages (must include/must avoid), content specifications, deliverables, timeline, review process, measurement KPIs, compensation. Balance: brand control vs influencer authenticity.

Question 149 of 150

What is omnichannel vs multichannel retail?

Explanation: Multichannel: website, app, store all separate experiences. Omnichannel: buy online, check in-store stock, return in-store, get email receipt. Data unified across channels. Customer journey continuous regardless of channel.

Question 150 of 150

What is the Jobs-to-be-Done (JTBD) framework in marketing?

Explanation: JTBD: people buy a milkshake in morning commute to do the 'job' of: keep hands occupied, stave off hunger until lunch, treat themselves. Not competing with other milkshakes but with bananas, bagels. Reframes competitive set.

Marketing Principles

Practice More on Dragonfly

Flashcards

Study Resources

More Practice Tests

Related Study Guides

Frequently Asked Questions