Strategic Management & Marketing Management
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🔹 SECTION A – STRATEGIC MANAGEMENT: CONCEPTS, PROCESS & TYPES
1. Strategy refers to:
A. Short-term plan of action
B. Long-term plan to achieve objectives
C. Daily operational decisions
D. Random future plan
Answer: B
Explanation: Strategy is a long-term plan designed to achieve organizational goals.*
2. Strategic management involves:
A. Planning only
B. Implementation only
C. Formulation, implementation, and evaluation
D. None
Answer: C
3. The father of modern strategic management is:
A. Peter Drucker
B. Alfred Chandler
C. Michael Porter
D. Henry Mintzberg
Answer: B
Explanation: Alfred Chandler gave one of the earliest formal definitions of strategy.*
4. Mintzberg described strategy as:
A. A plan
B. A ploy
C. A pattern
D. All of the above
Answer: D
Explanation: Mintzberg’s 5 Ps of Strategy – Plan, Ploy, Pattern, Position, Perspective.*
5. Corporate-level strategy deals with:
A. Overall direction of organization
B. Marketing mix
C. Functional performance
D. Employee morale
Answer: A
6. Business-level strategy focuses on:
A. How to compete in the market
B. Which business to enter
C. HR decisions
D. Financial control
Answer: A
7. Functional strategy deals with:
A. Specific departmental goals
B. Mergers
C. Diversification
D. Corporate growth
Answer: A
8. Strategic decisions are:
A. Routine
B. Long-term and complex
C. Operational
D. Day-to-day
Answer: B
9. Which of the following is not a characteristic of strategic management?
A. Long-term perspective
B. Involves uncertainty
C. Short-term profitability
D. Integration of functions
Answer: C
10. The key objective of strategic management is:
A. Short-term profit
B. Customer satisfaction only
C. Competitive advantage and survival
D. Legal compliance
Answer: C
🔹 SECTION B – STRATEGIC ANALYSIS (EXTERNAL & INTERNAL)
11. PEST analysis evaluates:
A. Internal factors
B. External macro-environment
C. Employee behavior
D. Financial ratios
Answer: B
12. PEST stands for:
A. Political, Economic, Social, Technological
B. People, Ethics, Structure, Training
C. Profit, Efficiency, Sales, Turnover
D. Policy, Environment, Strategy, Tactics
Answer: A
13. Porter’s Five Forces framework analyzes:
A. Industry attractiveness and competition
B. Financial position
C. Internal control
D. Economic policies
Answer: A
14. According to Porter, threat of new entrants is higher when:
A. Entry barriers are low
B. Brand loyalty is strong
C. Economies of scale exist
D. Distribution channels are limited
Answer: A
15. Value chain analysis was developed by:
A. Henry Mintzberg
B. Peter Drucker
C. Michael Porter
D. Philip Kotler
Answer: C
16. In Porter’s value chain, “Human Resource Management” is a:
A. Primary activity
B. Support activity
C. Core activity
D. Strategic output
Answer: B
17. The Resource-Based View (RBV) focuses on:
A. Internal resources and capabilities
B. Industry competition
C. Customer satisfaction
D. Government policy
Answer: A
18. According to RBV, competitive advantage is achieved if resources are:
A. Valuable, Rare, Inimitable, Organized (VRIO)
B. Variable, Real, Innovative, Objective
C. Tangible only
D. Easily available
Answer: A
19. SWOT analysis stands for:
A. Strengths, Weaknesses, Opportunities, Threats
B. Systems, Work, Objectives, Tactics
C. Skills, Wisdom, Organization, Team
D. None
Answer: A
20. Internal factors in SWOT include:
A. Strengths and Weaknesses
B. Opportunities and Threats
C. Economic and Political
D. None
Answer: A
🔹 SECTION C – STRATEGY FORMULATION
21. Corporate strategy deals with:
A. Overall direction and scope
B. Pricing
C. HR planning
D. Marketing mix
Answer: A
22. Growth strategy aims at:
A. Expanding operations or market
B. Maintaining existing position
C. Cost reduction
D. Retrenchment
Answer: A
23. Stability strategy is adopted when:
A. Environment is stable
B. Demand is uncertain
C. Market is shrinking
D. Diversification is needed
Answer: A
24. Retrenchment strategy means:
A. Reducing scope of business
B. Expanding business
C. Merging with competitors
D. Introducing new products
Answer: A
25. Diversification involves:
A. Entry into new products or markets
B. Concentration on one product
C. Reducing investment
D. None
Answer: A
26. Forward integration means:
A. Moving towards customer end
B. Acquiring suppliers
C. Reducing costs
D. Outsourcing
Answer: A
27. Backward integration means:
A. Acquiring suppliers
B. Acquiring distributors
C. Merging with competitors
D. None
Answer: A
28. BCG matrix uses which two dimensions?
A. Market share and market growth
B. Profitability and liquidity
C. Demand and supply
D. Cost and price
Answer: A
29. In BCG matrix, “Dogs” represent:
A. Low share and low growth
B. High share and high growth
C. Low share and high growth
D. None
Answer: A
30. GE Nine-Cell Model evaluates:
A. Industry attractiveness and business strength
B. Profit and loss
C. Market share
D. Product mix
Answer: A
🔹 SECTION D – STRATEGY IMPLEMENTATION
31. The key challenge in strategy implementation is:
A. Resistance to change
B. Resource abundance
C. Stability
D. Expansion
Answer: A
32. McKinsey’s 7S framework includes:
A. Strategy, Structure, Systems, Style, Staff, Skills, Shared Values
B. Strength, Skill, Staff, Standards, Systems, Strategy, Schedule
C. None
Answer: A
33. “Shared Values” in 7S framework act as:
A. Central core element
B. HR function
C. External factor
D. None
Answer: A
34. Strategy implementation requires:
A. Coordination and communication
B. Isolation of departments
C. Ignoring resistance
D. Reducing staff
Answer: A
35. Evaluation of strategy involves:
A. Measuring performance and taking corrective action
B. Planning
C. Organizing
D. Staffing
Answer: A
36. Strategy evaluation is important because:
A. Environment changes constantly
B. Plans are perfect
C. Implementation is easy
D. None
Answer: A
37. A company’s mission defines:
A. Purpose of existence
B. Future vision
C. Marketing plan
D. Policy statement
Answer: A
38. Vision statement represents:
A. Future aspiration
B. Current business scope
C. Past performance
D. None
Answer: A
39. Strategic control focuses on:
A. Continuous monitoring of strategic activities
B. Daily accounting
C. HR training
D. None
Answer: A
40. Long-term strategy is evaluated using:
A. Balanced Scorecard
B. Cash flow ratio
C. Break-even analysis
D. Job analysis
Answer: A
🔹 SECTION E – MARKETING: CONCEPTS & ORIENTATION
41. Marketing is:
A. The process of creating and delivering value to customers
B. Selling goods only
C. Advertising only
D. None
Answer: A
42. “The aim of marketing is to make selling unnecessary.” — said by:
A. Peter Drucker
B. Philip Kotler
C. Levitt
D. Stanton
Answer: A
43. Which of the following is a marketing orientation?
A. Production
B. Selling
C. Societal
D. All of the above
Answer: D
44. Societal marketing emphasizes:
A. Customer welfare and sustainability
B. Only profit
C. Government policy
D. None
Answer: A
45. Relationship marketing focuses on:
A. Long-term customer relationships
B. One-time sale
C. Promotion
D. Product features
Answer: A
46. Customer value =
A. Benefits − Costs
B. Costs + Benefits
C. Benefits × Costs
D. None
Answer: A
47. Customer satisfaction occurs when:
A. Performance ≥ Expectations
B. Performance < Expectations
C. Price > Value
D. Cost < Value
Answer: A
48. The modern marketing philosophy is:
A. Customer-oriented
B. Product-oriented
C. Sales-oriented
D. Production-oriented
Answer: A
49. Marketing myopia was introduced by:
A. Theodore Levitt
B. Philip Kotler
C. Peter Drucker
D. Porter
Answer: A
50. Marketing myopia refers to:
A. Short-sighted focus on products instead of customer needs
B. Over-diversification
C. Long-term growth
D. Over-promotion
Answer: A
SECTION F – MARKET SEGMENTATION, TARGETING & POSITIONING (STP)
51. Market segmentation means:
A. Dividing the market into homogeneous groups
B. Selling the same product to everyone
C. Focusing on a single customer
D. None
Answer: A
Explanation: Segmentation divides the market based on common characteristics like age, income, lifestyle, etc.*
52. Basis for segmentation does not include:
A. Demographic
B. Geographic
C. Political
D. Psychographic
Answer: C
53. Demographic segmentation includes:
A. Age, gender, income
B. Personality, lifestyle
C. Loyalty
D. Usage rate
Answer: A
54. Psychographic segmentation is based on:
A. Lifestyle and personality
B. Income and education
C. Occupation
D. Region
Answer: A
55. Target marketing means:
A. Selecting the most suitable market segment to serve
B. Dividing customers
C. Mass selling
D. Branding
Answer: A
56. Undifferentiated marketing means:
A. One strategy for the whole market
B. Many strategies for each segment
C. Niche marketing
D. Differentiation
Answer: A
57. Concentrated marketing focuses on:
A. A single market segment
B. Many segments
C. All customers
D. Large-scale production
Answer: A
58. Positioning is about:
A. Creating a unique place in customers’ minds
B. Setting prices
C. Distribution
D. Advertising frequency
Answer: A
59. The famous quote “Positioning is not what you do to the product, but what you do to the mind of the prospect” is by:
A. Ries and Trout
B. Kotler
C. Drucker
D. Porter
Answer: A
60. A successful positioning strategy should be:
A. Clear, consistent, and credible
B. Confusing
C. Complex
D. Temporary
Answer: A
🔹 SECTION G – PRODUCT DECISIONS
61. Product mix refers to:
A. All products offered by a company
B. Only one product
C. Packaging design
D. Promotional activities
Answer: A
62. The dimensions of product mix include:
A. Width, Depth, Length, Consistency
B. Price, Place, Promotion, Product
C. Demand, Supply
D. All of the above
Answer: A
63. A product line is:
A. Group of related products
B. Single product
C. Unrelated group
D. None
Answer: A
64. Product Life Cycle (PLC) has how many stages?
A. 3
B. 4
C. 5
D. 6
Answer: B
(Introduction, Growth, Maturity, Decline)
65. The stage with the highest profit level in PLC is:
A. Growth
B. Maturity
C. Introduction
D. Decline
Answer: A
66. New Product Development (NPD) starts with:
A. Idea generation
B. Test marketing
C. Commercialization
D. Screening
Answer: A
67. Test marketing means:
A. Testing product in limited market area
B. Testing lab features
C. Internal review
D. None
Answer: A
68. At which PLC stage does advertising focus on brand loyalty?
A. Maturity
B. Growth
C. Introduction
D. Decline
Answer: A
69. At which PLC stage are prices usually high to recover development costs?
A. Introduction
B. Growth
C. Decline
D. Maturity
Answer: A
70. Product differentiation provides:
A. Competitive advantage
B. Increased cost
C. Reduced quality
D. Lower satisfaction
Answer: A
🔹 SECTION H – PRICING DECISIONS
71. The main objective of pricing is:
A. Profit maximization
B. Cost reduction
C. Tax saving
D. Employee motivation
Answer: A
72. Cost-plus pricing =
A. Cost + Desired profit margin
B. Cost − Margin
C. Cost × Demand
D. None
Answer: A
73. Skimming pricing is used when:
A. Product is new and innovative
B. Market is highly competitive
C. Price-sensitive customers
D. Low-quality products
Answer: A
74. Penetration pricing means:
A. Low initial price to capture market share
B. High price to skim early profits
C. Cost-based pricing
D. None
Answer: A
75. Psychological pricing refers to:
A. ₹99 instead of ₹100
B. Cost-plus
C. Penetration
D. Premium pricing
Answer: A
76. Value-based pricing is determined by:
A. Perceived customer value
B. Cost of production
C. Competition
D. Government control
Answer: A
77. Price discrimination means:
A. Charging different prices for same product
B. Same price to all
C. Selling below cost
D. Selling only in one market
Answer: A
78. Predatory pricing aims to:
A. Eliminate competitors
B. Increase costs
C. Reduce demand
D. None
Answer: A
79. Dynamic pricing is used in:
A. Online platforms (e.g., Uber, Amazon)
B. Government markets
C. Fixed shops
D. Agriculture
Answer: A
80. “Everyday Low Pricing (EDLP)” is followed by:
A. Walmart
B. Apple
C. Rolex
D. Mercedes
Answer: A
🔹 SECTION I – PLACE (DISTRIBUTION) DECISIONS
81. Marketing channel refers to:
A. The route through which goods move from producer to consumer
B. Advertising media
C. Sales force
D. None
Answer: A
82. Zero-level channel means:
A. Direct marketing (Producer → Consumer)
B. Producer → Retailer → Consumer
C. Producer → Wholesaler → Retailer → Consumer
D. None
Answer: A
83. A wholesaler operates between:
A. Producer and retailer
B. Producer and consumer
C. Retailer and consumer
D. None
Answer: A
84. Vertical Marketing System (VMS) aims to:
A. Coordinate all channel members
B. Increase conflict
C. Eliminate intermediaries
D. None
Answer: A
85. Contractual VMS is seen in:
A. Franchising systems like McDonald’s
B. Producer-owned outlets
C. Informal retailers
D. None
Answer: A
86. Corporate VMS is:
A. Single ownership across channel levels
B. Contract-based
C. Administered by price
D. None
Answer: A
87. Value network includes:
A. Suppliers, distributors, customers
B. Only producers
C. Competitors
D. None
Answer: A
88. Physical distribution includes:
A. Transportation, warehousing, inventory, order processing
B. Advertising
C. Branding
D. Promotion
Answer: A
89. Channel conflict arises due to:
A. Role ambiguity or pricing issues
B. Cooperation
C. Common goals
D. None
Answer: A
90. Reverse logistics refers to:
A. Movement of goods from consumers back to producers
B. Forward delivery
C. Storing inventory
D. None
Answer: A
🔹 SECTION J – PROMOTION & INTEGRATED MARKETING COMMUNICATION (IMC)
91. Promotion mix includes:
A. Advertising, Sales Promotion, Personal Selling, PR, Direct Marketing
B. Only advertising
C. Only sales promotion
D. Only PR
Answer: A
92. Advertising is:
A. Paid, non-personal form of communication
B. Free publicity
C. Personal communication
D. Informal talk
Answer: A
93. Sales promotion offers:
A. Short-term incentives to increase sales
B. Long-term customer loyalty
C. Employee training
D. Branding
Answer: A
94. Personal selling involves:
A. Direct face-to-face interaction
B. Mass media
C. Public relations
D. None
Answer: A
95. Public Relations (PR) focuses on:
A. Building goodwill and company image
B. Selling products directly
C. Internal control
D. Pricing
Answer: A
96. Direct marketing includes:
A. Email, SMS, social media marketing
B. Retail selling
C. Public speaking
D. None
Answer: A
97. Integrated Marketing Communication (IMC) ensures:
A. Consistent message across all channels
B. Conflicting communication
C. Limited exposure
D. Unclear branding
Answer: A
98. The primary objective of advertising is:
A. Inform, persuade, remind
B. Reduce price
C. Lower costs
D. None
Answer: A
99. Push strategy focuses on:
A. Channel members like retailers
B. Directly on consumers
C. Mass media
D. Online sales
Answer: A
100. Pull strategy focuses on:
A. Creating consumer demand through advertising and promotion
B. Pushing inventory
C. Reducing production
D. None
Answer: A