C
O
D
SE
R
U
N
,Digital Marketing Strategy 3e by Simon Kingsnorth
Chapter 1: The foundations of digital marketing
Test bank answers
1. a), b), d), e)
2. False
3. c)
4. b)
5. b)
N
6. c)
7. a)
8. d)
U
9. True
10. False:
11. b)
R
12. False
13. c)
14. b)
15. b)
SE
16. True
17. a)
18. c)
19. c)
20. a), b)
D
O
C
S
,Digital Marketing Strategy 3e by Simon Kingsnorth
Chapter 1: The foundations of digital marketing
Test bank
1. Which four of the following make up ‘The 4 Ps of Marketing’?
a) Price
b) Promotion
c) Process
d) Place
e) Product
N
2. True or false: ‘Below-the-line’ promotion refers to mass marketing such as TV adverts.
U
3. Which one of the following is NOT one of Porter’s Five Forces?
a) Threat of new entrants
b) Bargaining power of suppliers
R
c) Bargaining power of competitors
d) Threat of substitute products or services
SE
4. A Brand or Perceptual Positioning Map maps a company’s position in the market from which
perspective?
a) Suppliers
b) Consumers
c) Competitors
d) Regulators
D
5. What does CPA stand for?
a) Customer per acquisition
O
b) Cost per acquisition
c) Cost per average margin
d) Customer per average cost
C
6. What does CLTV stand for?
a) Competitor Lifetime Value
b) Customer Lifetime View
S
c) Customer Lifetime Value
d) Competitor Lifetime View
7. What is the formula for calculating CLTV?
a) CLTV = Lifetime x Avg margin
b) CLTV = Lifetime x Avg cost
c) CLTV = Lifecycle x Avg price
d) CLTV = Lifecycle x Avg revenue
8. What type of segmentation groups customers by age range?
, a) Geographic
b) Benefit
c) Psychographic
d) Demographic
9. True or false: Geographic marketing can help inform data selection for digital marketing
strategy.
10. True or false: People in the same demographic will often behave similarly.
11. Why is it important to work with up-to-date behavioural data?
a) Because customers may move to a new area
N
b) Because customers may experience lifestyle changes
c) Because customers may change their job
d) Because customers may hear about a competitor.
U
12. True or false: The benefits of a product will be the same for everyone within a segment.
R
13. Which type of segmentation would help a company to understand whether their customers
are motivated by ‘green’ products?
a) Benefit
SE
b) Behavioural
c) Psychographic
d) Geographic
14. How many personas would a business create, on average?
a) 1-5
D
b) 5-10
c) 10-15
d) 15-20
O
15. What do the letters on the BCG Matrix stand for?
a) Boston Consumer Group
b) Boston Consulting Group
C
c) Bolton Consulting Group
d) Bolton Consumer Group
S
16. True or false: Products categorized as ‘Dogs’ tend to break-even.
17. Which products give a high market share in a high-growth environment?
a) Stars
b) Dogs
c) Cash cows
d) Question marks
18. A digital marketing business may seek to move SEO from what to what on the BCG Matrix?:
a) A Cash cow to a Star