Lesson 2.2.5b

2.2.5b Integrated marketing mix and competitive advantage Quiz: Pearson Edexcel Business, Unit 7

20 questions

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Lesson 2.2.5b, Integrated marketing mix and competitive advantage: 20 multiple choice questions for the Pearson Edexcel GCSE Business (1BS0), Unit 7: Making marketing decisions, written with Revision Ninja.

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The 20 questions

  1. Competitive advantage means:

    • a feature that allows a business to outperform its rivals
    • a legal right to avoid competition in its market entirely
    • a tariff that protects domestic firms from foreign rivals
    • a guarantee of market leadership that never fades over time
  2. An integrated marketing mix is one where:

    • only the price element is considered
    • the mix changes every day at random
    • each element is planned in isolation from the others
    • all four elements work together towards the same aim
  3. Which is a source of competitive advantage for a business?

    • Offering the same product as everyone else
    • Copying the market leader's price exactly
    • Relying on a tariff to keep rivals out
    • A unique product that rivals cannot easily copy
  4. How can an integrated mix create competitive advantage?

    • By ignoring what customers want and planning around the firm
    • By avoiding all differentiation so the product stays generic
    • By making customers see one consistent, attractive offer
    • By giving different messages through each of the four elements
  5. A business gains competitive advantage through place decisions when:

    • its products are easier for customers to get than rivals'
    • it closes all of its shops and sells only through the post
    • it offers the fewest delivery options of any firm in the market
    • it sells only to one customer, which keeps its costs very low
  6. Which is most likely to build a lasting competitive advantage?

    • A copied product design taken from the market leader
    • A temporary tariff placed on imports for a few months
    • A single one-off discount offered to customers once only
    • Brand loyalty built by consistent quality and promotion
  7. Which is a risk of relying only on price for competitive advantage?

    • Rivals can cut prices too, leading to a price war
    • It always increases profit whatever happens in the market
    • Prices cannot be changed once they have been set by the firm
    • Customers never compare prices of goods before they buy
  8. A product's price is 10% lower than rivals and its promotion stresses quality. What is the most likely result?

    • No effect on sales in any case
    • Loss of all customers at once
    • A value message that may suit budget buyers
    • A higher perceived price for the product
  9. A coffee shop has a strong brand, a convenient location and a loyalty scheme. What is its advantage?

    • An import ban on rival coffee brands entering the area
    • A monopoly granted to it by law in its local area
    • An integrated mix that creates customer loyalty
    • A merger with a rival coffee shop in the same town
  10. A firm earns a 20% profit margin on a £150 product. What is the profit per unit?

    • £130
    • £15
    • £30
    • £170
  11. Which mix combination best supports a competitive advantage based on convenience?

    • A remote site with no delivery and no adverts
    • A single shop open one day a week
    • Online ordering with fast delivery and reminders
    • High prices with no delivery option
  12. A business launches a new product across all four elements. What is the most likely benefit?

    • The removal of all competition from the market at launch
    • A guaranteed profit regardless of how sales perform later on
    • A consistent message that makes the launch stronger
    • No need for any launch budget because it is fully integrated
  13. A rival copies a product design but not the brand's customer service. Which advantage remains with the first firm?

    • The tariff paid on imports that the firm brings in
    • Customer service and brand loyalty
    • The trade bloc membership that the firm enjoys each year
    • The copied design that the rival has taken from the firm
  14. Which measure would best show that an integrated mix is building repeat customers?

    • Tariff rate
    • Repeat purchase rate
    • Number of trade bloc members
    • Share of the stock market
  15. Which example shows the mix elements conflicting rather than integrated?

    • A luxury product sold in discount stores with a 'cheap' advert
    • A premium product sold in exclusive stores with luxury adverts
    • A budget product sold in discount stores with a value advert
    • A budget product sold online with a discount code
  16. A business builds advantage through a unique distribution channel. What must it do to keep this advantage?

    • Raise prices indefinitely whatever customers think of them
    • Stop communicating with customers through the channel entirely
    • Keep the channel reliable and match the product promise
    • Remove all customer service from the channel to cut costs
  17. Is competitive advantage through an integrated mix permanent?

    • No, rivals can copy parts, so it must keep improving
    • Yes, once it is set the advantage can never be lost at all
    • Yes, because tariffs protect every brand in the market
    • Yes, because customers never change their habits or brands
  18. A firm raises its price by 10% from £20 and volume falls by 5% from 1,000 units. What is the effect on revenue?

    • Revenue is unchanged
    • Revenue falls by £900
    • Revenue rises by £2,000
    • Revenue rises by £900
  19. Which combination best describes an integrated mix that builds advantage in a crowded market?

    • A differentiated product, consistent pricing and targeted promotion
    • A copied product with random pricing and no promotion at all
    • A product sold everywhere with no message at all to buyers
    • Any price with no product plan behind it for the customers
  20. Why might an integrated mix be hard for rivals to copy?

    • It uses no brand name at all, so it cannot be recognised
    • It relies on one element that is easy for rivals to copy
    • It combines several linked decisions rivals must match
    • It uses a product that rivals can simply buy off the shelf

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