New Product Development MCQs for Entry Test with Answers and Explanations [PDF]

The communication channel in which two or more people communicate with each other via e-mail or mail, telephone call or face to face is classified as?

Option A: personal communication channels

Option B: irrational communication channels

Option C: non-personal communication channels

Option D: non-emotional communication channels

Correct Answer: personal communication channels ✔

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The step in personal selling process which consists of first meeting first meeting between customer and sales person is called?

Option A: qualifying

Option B: prospecting

Option C: follow up

Option D: approach

Correct Answer: approach ✔

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The third step in personal selling process after completion of pre-approach step is to?

Option A: prospecting and qualifying

Option B: handling objections

Option C: approach

Option D: presentation and demonstration

Correct Answer: approach ✔

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The method of managing advertising budget at the level company can have money for is classified as?

Option A: percentage of sales method

Option B: affordable method

Option C: competitive parity method

Option D: objective and task method

Correct Answer: affordable method ✔

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The theme of the message content which is related to self-interest of audience is classified as?

Option A: irrational appeal

Option B: moral appeal

Option C: rational appeal

Option D: emotional appeal

Correct Answer: rational appeal ✔

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Considering promotional mix, the paid, non-personal promotion of ideas or market offerings by some specific sponsor is classified as?

Option A: public relations

Option B: advertising

Option C: sales promotion

Option D: personal selling

Correct Answer: sales promotion ✔

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The sales force structure in which a sales representatives works to sell specific items of product line is classified as?

Option A: indirect sales force structure

Option B: territorial sales force structure

Option C: customer sales force structure

Option D: product sales force structure

Correct Answer: product sales force structure ✔

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The personal selling step in which the sales person asks for an order to the customer is classified as?

Option A: shipper approach

Option B: handling shipment

Option C: closing

Option D: follow up

Correct Answer: closing ✔

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The promotion technique for consumers according to which demonstrations and displays of products made at place of sale is called?

Option A: point of purchase promotion

Option B: cents off deals

Option C: sales premium

Option D: advertising specialties

Correct Answer: point of purchase promotion ✔

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According to PLC stages, the stage in which the profits are non-existent because of higher expenses is said to be?

Option A: introduction stage

Option B: turbulent stage

Option C: innovation stage

Option D: non-profit stage

Correct Answer: introduction stage ✔

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The ‘idea-reducing stage’ in new product development process consists of?

Option A: screening of product

Option B: screening of customers

Option C: screening of ideas

Option D: generation of ideas

Correct Answer: screening of ideas ✔

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The communication channel through which opinion leaders are educated about market offerings to spread information about that market offering is classified as?

Option A: print and broadcast media

Option B: word-of-mouth influence

Option C: buzz marketing

Option D: display and online media

Correct Answer: buzz marketing ✔

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Considering non-personal communication channels, the billboards and posters are considered as?

Option A: online media

Option B: print media

Option C: broadcast media

Option D: display media

Correct Answer: display media ✔

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The major strategies regarding promotion mix are?

Option A: pull and push strategy

Option B: rational and moral selling strategy

Option C: direct strategy

Option D: indirect strategy

Correct Answer: pull and push strategy ✔

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The broad categories of communication channels are?

Option A: personal communication channels

Option B: irrational communication channels

Option C: non-personal communication channels

Option D: both a and c

Correct Answer: both a and c ✔

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The promotion strategy in which the producers promotes goods to final customers by using sales force is classified as?

Option A: rational selling strategy

Option B: push strategy

Option C: pull strategy

Option D: moral selling strategy

Correct Answer: push strategy ✔

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In PLC stages, the phase in which products profits decline and product has been defended from competition is called?

Option A: maturity stage

Option B: predictive stage

Option C: improved market stage

Option D: profit achieved stage

Correct Answer: maturity stage ✔

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The widely accepted and currently popular style in specific or given field of art is called?

Option A: fashion

Option B: fads

Option C: followers

Option D: customs

Correct Answer: fashion ✔

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The new brands a company develops with its own resources and R&D efforts are called?

Option A: new products

Option B: existing products

Option C: acquisition

Option D: mergers

Correct Answer: new products ✔

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The ‘marketing strategy statement’ third part consists of?

Option A: target market

Option B: planned value proposition

Option C: sales, profit goals, market share

Option D: developing mission statement

Correct Answer: sales, profit goals, market share ✔

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The tests in test marketing are?

Option A: controlled test markets

Option B: simulated test markets

Option C: free test markets

Option D: both a and b

Correct Answer: both a and b ✔

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The sales of market offering in growth stage of product life cycle are recorded as?

Option A: low sales

Option B: rapidly rising sales

Option C: peak sales

Option D: declining sales

Correct Answer: rapidly rising sales ✔

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The clothing lines distribution as casual clothes and formal clothes is a classic example of?

Option A: styles

Option B: fashion

Option C: norms

Option D: followers

Correct Answer: styles ✔

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The method of managing promotional budget to match the outlays of competitors is called?

Option A: percentage of sales method

Option B: affordable method

Option C: competitive parity method

Option D: objective and task method

Correct Answer: competitive parity method ✔

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The customers in the decline stage are classified as?

Option A: innovators

Option B: early adopters

Option C: middle majority

Option D: laggards

Correct Answer: laggards ✔

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In product life cycle, the stage in which sales are zero is classified as?

Option A: product development stage

Option B: maturity stage

Option C: growth stage

Option D: decline stage

Correct Answer: product development stage ✔

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The major media channels such as print, display, online and broadcast are classified as?

Option A: non-personal communication channels

Option B: non-emotional communication channels

Option C: personal communication channels

Option D: irrational communication channels

Correct Answer: non-personal communication channels ✔

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MnM’s prepares special ads and packaging of chocolate candies for Christmas, Easter and Halloween is an example of?

Option A: geographic segmentation

Option B: income segmentation

Option C: psychographic segmentation

Option D: occasion segmentation

Correct Answer: occasion segmentation ✔

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According to promotional mix, the method which follows corporate image building, handling unfavorable events and stories to get favorable publicity is called?

Option A: sales promotion

Option B: personal selling

Option C: public relations

Option D: advertising

Correct Answer: public relations ✔

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After company has positioned itself, it should take steps to?

Option A: communicate the positioning

Option B: differentiation

Option C: establish distribution channels

Option D: none of above

Correct Answer: communicate the positioning ✔

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The process of buying a license or copyrights to produce any other company’s product is called?

Option A: acquisition

Option B: repetition

Option C: merger

Option D: new packaging of product

Correct Answer: acquisition ✔

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The communication channels such as buzz marketing and word-of-mouth influence are classified as?

Option A: non-personal communication channels

Option B: non-emotional communication channels

Option C: personal communication channels

Option D: irrational communication channels

Correct Answer: personal communication channels ✔

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The way of personal communication between friends, family, neighbors and target buyers about particular market offering is called?

Option A: print and broadcast media

Option B: word-of-mouth influence

Option C: buzz marketing

Option D: display and online media

Correct Answer: word-of-mouth influence ✔

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The ‘differentiated marketing’ is also called?

Option A: mass marketing

Option B: segmented marketing

Option C: concentrated marketing

Option D: micromarketing

Correct Answer: segmented marketing ✔

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The methods used to determine total budget for advertising its market offerings are?

Option A: affordable method

Option B: competitive parity method

Option C: percentage of sales method

Option D: all of above

Correct Answer: all of above ✔

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If the product ideas source is company’s own research and development department, it is said to be?

Option A: internal idea sources

Option B: external idea sources

Option C: systematic idea sources

Option D: resourcing

Correct Answer: internal idea sources ✔

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The method of managing advertising budget at a certain percentage of sales price per unit or forecasted sales of products is classified as?

Option A: percentage of sales method

Option B: affordable method

Option C: competitive parity method

Option D: objective and task method

Correct Answer: percentage of sales method ✔

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Considering promotional mix, the method of giving short term incentives to encourage sale of particular market offering is classified as?

Option A: sales promotion

Option B: personal selling

Option C: public relations

Option D: advertising

Correct Answer: sales promotion ✔

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The process which consists of coordination of communication channels to deliver and compelling message about company and its products is classified as?

Option A: integrated marketing communications

Option B: integrated strategic channels

Option C: integrated outbound channels

Option D: none of the above

Correct Answer: integrated marketing communications ✔

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The testing technique in which researchers measure customers responses to new products is called?

Option A: controlled test markets

Option B: simulated test markets

Option C: free test markets

Option D: uncontrolled test markets

Correct Answer: simulated test markets ✔

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In product life cycle, the new products are cause of?

Option A: growth

Option B: maturity

Option C: decline

Option D: loss

Correct Answer: growth ✔

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Considering non-personal communication channels, the social networking sites, e-mail and company Websites are considered as?

Option A: broadcast media

Option B: display media

Option C: online media

Option D: print media

Correct Answer: online media ✔

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In the ‘decline stage of product life cycle’ the per customer cost is?

Option A: high

Option B: low

Option C: average

Option D: moderate

Correct Answer: low ✔

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The set of stages through which the customers pass through while purchasing the market offerings are classified as?

Option A: channel designing stages

Option B: strategic stages

Option C: channeling stages

Option D: buyer readiness stage

Correct Answer: buyer readiness stage ✔

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In the product life cycle maturity stage, the marketing objective is to?

Option A: create product awareness

Option B: maximize the market share

Option C: defend market share and profits

Option D: reduce expenditure

Correct Answer: defend market share and profits ✔

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Considering non-personal communication channels, the radio and television are considered as?

Option A: broadcast media

Option B: display media

Option C: online media

Option D: print media

Correct Answer: broadcast media ✔

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In the ‘introduction stage’ of product life cycle, the cost per customer is?

Option A: high

Option B: low

Option C: average

Option D: moderate

Correct Answer: high ✔

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The sales of a product that are driven by temporary enthusiasm and brand popularity are classified as?

Option A: fads

Option B: customs

Option C: tradition

Option D: norms

Correct Answer: fads ✔

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The theme of message content which directs to the audience sense of what is proper and right is classified as?

Option A: irrational appeal

Option B: moral appeal

Option C: rational appeal

Option D: emotional appeal

Correct Answer: moral appeal ✔

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In the product life cycle decline stage, the marketing objective is to?

Option A: create product awareness

Option B: maximize the market share

Option C: defend market share and profits

Option D: reduce expenditure

Correct Answer: reduce expenditure ✔

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The market segmentation based on customers race and nationality is an example of?

Option A: geographic segmentation

Option B: demographic segmentation

Option C: psychographic segmentation

Option D: behavioral segmentation

Correct Answer: demographic segmentation ✔

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The message framework design AIDA stands for?

Option A: action, intention, design and attention

Option B: action, interest, desire and attention

Option C: agency, intention, design and attention

Option D: attention, interest, desire and action

Correct Answer: attention, interest, desire and action ✔

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The PLC stage in which new product is distributed for the first time is called?

Option A: introductory stage

Option B: business analysis stage

Option C: market analysis stage

Option D: product marketing stage

Correct Answer: introductory stage ✔

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The PLC stage in which the distribution and promotion expenses are uncover able because of low profits is referred as?

Option A: introductory stage

Option B: business analysis stage

Option C: market analysis stage

Option D: product marketing stage

Correct Answer: introductory stage ✔

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The process of systematic search for gathering new product ideas is called?

Option A: idea generation

Option B: product generation

Option C: market development

Option D: business development

Correct Answer: idea generation ✔

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In the product life cycle growth stage, the marketing objective is to?

Option A: create product awareness

Option B: maximize the market share

Option C: defend market share and profits

Option D: reduce expenditure

Correct Answer: maximize the market share ✔

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The method of managing promotion budget by defining objectives, determining tasks to achieve objectives and estimating costs for activities is called?

Option A: percentage of sales method

Option B: affordable method

Option C: competitive parity method

Option D: objective and task method

Correct Answer: objective and task method ✔

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The new competitors will enter in the market in the PLC stage called?

Option A: growth stage

Option B: lately buying stage

Option C: segmenting stage

Option D: targeting stage

Correct Answer: growth stage ✔

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The competitors in the introductory stage of product life cycle are?

Option A: few

Option B: continuously growing

Option C: stable but declining

Option D: none of the above

Correct Answer: few ✔

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The type of channel arrangement includes?

Option A: conventional distribution channel

Option B: horizontal marketing system

Option C: vertical marketing system

Option D: both a and c

Correct Answer: both a and c ✔

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The marketing logistics are also called as?

Option A: physical distribution

Option B: supply chain management

Option C: exclusive distribution

Option D: exclusive dealing

Correct Answer: physical distribution ✔

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The systematic blend of personal selling, sales promotion, advertising and public relations to communicate customer value is called?

Option A: promotion mix

Option B: marketing communication mix

Option C: strategic buyer behavior mix

Option D: both a and b

Correct Answer: both a and b ✔

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The system which calls for managing, motivating, selecting and evaluating performance of marketing channels over time is called?

Option A: vertical management

Option B: horizontal management

Option C: marketing channel management

Option D: distribution management

Correct Answer: marketing channel management ✔

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If the fast food chain has conflict to some of its franchises then this conflict is considered as?

Option A: steep conflict

Option B: slope conflict

Option C: vertical conflict

Option D: horizontal conflict

Correct Answer: horizontal conflict ✔

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The strategy of distribution in which seller limits its dealers to not to sell any competitors products is classified as?

Option A: exclusive distribution

Option B: exclusive dealing

Option C: inclusive distribution

Option D: intensive distribution

Correct Answer: exclusive dealing ✔

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The form of distribution system in which one firm setup more than one marketing channel to reach more than one customer segment is classified as?

Option A: multichannel distribution system

Option B: multichannel system

Option C: multiple intermediary system

Option D: multiple manufacturing franchises

Correct Answer: multichannel distribution system ✔

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The fifth step in the process of new product development is?

Option A: business analysis

Option B: analyzing marketing strategy

Option C: deciding marketing medium

Option D: attracting new engineers

Correct Answer: business analysis ✔

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If the company A works through website and sell its handbags only having no outlets anywhere then channel used by company A is called?

Option A: flexible channel

Option B: static channel

Option C: direct channel

Option D: indirect channel

Correct Answer: direct channel ✔

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In marketing intermediaries, the way of distribution in which few dealers distribute company’s product in selective territories is classified as?

Option A: selective distribution

Option B: intensive distribution

Option C: inclusive distribution

Option D: exclusive distribution

Correct Answer: exclusive distribution ✔

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The network of delivering products to customer which is composed of distributors, suppliers and manufacturing company is classified as?

Option A: supply chain management

Option B: marketing channels

Option C: delivery channels

Option D: value delivery network

Correct Answer: value delivery network ✔

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In marketing channels, the conflict occurs in marketing channels working at same level is classified as?

Option A: steep conflict

Option B: slope conflict

Option C: vertical conflict

Option D: horizontal conflict

Correct Answer: horizontal conflict ✔

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The overlapping of steps for more efficient and effective product development with closely working departments is classified as?

Option A: customer centered product development

Option B: team based product development

Option C: systematic product development

Option D: concentrated product development

Correct Answer: team based product development ✔

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The customers, distributors and suppliers collectively provide ideas for new-product development are classified asThe customers, distributors and suppliers collectively provide ideas for new-product development are classified as?

Option A: idea’s external sources

Option B: acquisition of ideas

Option C: primary sources

Option D: secondary sources

Correct Answer: A. idea’s external sources ✔

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Finding new ways to create more satisfying products for customers is called?

Option A: customer centered product development

Option B: team based product development

Option C: systematic product development

Option D: concentration based development

Correct Answer: customer centered product development ✔

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The PLC stage which experience increased marketing outlays is said to be?

Option A: maturity stage

Option B: predictive stage

Option C: improved market stage

Option D: profit achieved stage

Correct Answer: maturity stage ✔

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The market segmented on the basis of knowledge level of customers regarding such as ‘unaware, aware, interested and desirous customers’ is included in?

Option A: geographic segmentation

Option B: demographic segmentation

Option C: psychographic segmentation

Option D: behavioral segmentation

Correct Answer: behavioral segmentation ✔

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The process of managing upstream and downstream of final goods, flow of raw materials and information about resellers and final consumers is classified as?

Option A: marketing logistics network

Option B: supply chain management

Option C: delivery network

Option D: physical distribution network

Correct Answer: supply chain management ✔

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The computer giant Dell have an idea storming website used to ask customers for improvement suggestions is an example of?

Option A: internal sourcing

Option B: crowdsourcing

Option C: off shoring

Option D: off sourcing

Correct Answer: crowdsourcing ✔

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The management of new product development strategy includes?

Option A: customer centered development

Option B: team based development

Option C: systematic product development

Option D: all of above

Correct Answer: all of above ✔

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The marketing channel that involves no intermediaries to made their products available to final buyers is classified as?

Option A: direct channel

Option B: indirect channel

Option C: flexible channel

Option D: static channel

Correct Answer: direct channel ✔

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The arrangement of vertical management system in which non-dependent firms for production and distribution works together through contracts is classified as?

Option A: full time VMS

Option B: contractual VMS

Option C: administered VMS

Option D: corporate VMS

Correct Answer: contractual VMS ✔

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The new product development stage in which the concept is tested whether idea has strong appeal is called?

Option A: concept development

Option B: concept testing

Option C: material testing

Option D: market screening

Correct Answer: concept testing ✔

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The course of sales and profits of a product over its whole life is called?

Option A: product life cycle

Option B: customer lifetime value

Option C: product management

Option D: marketing management

Correct Answer: product life cycle ✔

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The highly automated storage house to receive products from various suppliers, fill area efficiently and send orders to customers efficiently is classified as?

Option A: exclusive center

Option B: distribution center

Option C: inbound center

Option D: outbound center

Correct Answer: distribution center ✔

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The set of organizations interdependent on each other that help in making market offerings available to customer are called?

Option A: interactive channels

Option B: marketing channels

Option C: pricing channels

Option D: basing point channels

Correct Answer: marketing channels ✔

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The marketing channels are considered as part of?

Option A: wholesaler-customer delivery network

Option B: customer-value delivery network

Option C: retailer-wholesaler delivery network

Option D: customer-retailer delivery network

Correct Answer: customer-value delivery network ✔

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The new-product development process consists of detailed steps and number of steps are?

Option A: Five steps

Option B: Six steps

Option C: Seven steps

Option D: Eight steps

Correct Answer: Eight steps ✔

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The marketing system in which two or more companies join together at one level to seek new marketing opportunity is classified as?

Option A: horizontal marketing system

Option B: vertical marketing system

Option C: static marketing system

Option D: flexible marketing system

Correct Answer: horizontal marketing system ✔

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The kind of channel arrangement in which the retailers, wholesalers and producers act as a single system is classified as?

Option A: conventional distribution channel

Option B: horizontal marketing system

Option C: vertical marketing system

Option D: static distribution channel

Correct Answer: vertical marketing system ✔

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