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1. A Cash Cow is(a) a product which generates a significant amount of profit for a company. (b) a product with a high market share, and a high rate of growth. (c) a product with a low market share and a low rate of growth. (d) a product which generates a significant amount of money for a company. 2. A product life cycle (a) shows how a products sales or profits, depending on the units used, may rise and fall over its life. (b) tells you how long a product will sell for and make a profit. (c) is divided into three stages. (d) shows how profitable a product will be. 3. All of the following are roles of wholesalers , except (a) breaking bulk. (b) sharing the risk of new products with the manufacturer. (c) servicing the needs of small customers. (d) selling directly to consumers. 4. The demand for a product varies with all of the following except (a) the income of prospective customers. (b) its price. (c) the costs of production. (d) The amount of successful advertising expenditure. 5. The price elasticity of demand for a product tells you (a) how sensitive price is to changes in demand. (b) how sensitive the demand for a product is to changes in the products price. (c) How demand changes with changes in the prices of competitors goods. (d) how sensitive demand is to changes in the costs of production. 6. Market share tells you(a) how well a firm is doing. (It can have a large share of a small, old market and be doing badly.)(b) how much power a firm has in a market. (c) how many firms there are in a particular market. (d) how big a market is. 7. Market segmentation is done by firms for all of the following reasons, except(a) to increase market share. (b) to assist new product development. (c) so that they can develop multi-purpose advertising campaigns. (d) to extend products into new markets. 8. In the marketing mix what is meant by the term place? (a) The process of getting products to the places where customers can buy them. (b) Recogni
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