Chapter 3 Summary with Short Questions and MCQs
Chapter Explanation
CHAPTER 3 – Collecting Information and Forecasting Demand
1. Marketing Information System (MIS)
MIS collects, stores, and analyzes information to help managers make decisions.
Components: Internal Records, Marketing Intelligence, Marketing Research.
2. Internal Records System
Includes order-to-payment cycle, sales information system, databases, data warehousing,
and data mining.
3. Marketing Intelligence System
Daily information collected from external sources like newspapers, social media, and
competitors.
4. Macroenvironment Analysis
Includes demographic, economic, sociocultural, technological, natural, and political-legal
environments.
5. Measuring and Forecasting Demand
Includes market potential, market demand, sales forecast, target market, and penetrated
market.
20 Short Questions with Answers
1. What is MIS?
Answer: MIS is a system for collecting and analyzing marketing information.
2. Components of MIS?
Answer: Internal records, marketing intelligence, marketing research.
3. What is order-to-payment cycle?
Answer: Process from receiving order to payment.
4. Define marketing intelligence.
Answer: Daily information from external sources.
5. What is a sales information system?
Answer: System giving accurate sales data.
6. Define data mining.
Answer: Finding patterns in large data sets.
7. What is macroenvironment?
Answer: External forces affecting business.
8. Define demographic environment.
Answer: Population characteristics.
9. What is economic environment?
Answer: Income, inflation, employment.
10. What is sociocultural environment?
Answer: Values, beliefs, lifestyles.
11. What is natural environment?
Answer: Resources, pollution, climate issues.
12. What is technological environment?
Answer: New technologies affecting markets.
13. What is political-legal environment?
Answer: Laws and government rules.
14. Define potential market.
Answer: People interested in a product.
15. Define available market.
Answer: Interested plus able to buy.
16. Define target market.
Answer: Group a company serves.
17. What is penetrated market?
Answer: Customers already buying.
18. What is market demand?
Answer: Total volume customers will buy.
19. Define market potential.
Answer: Maximum possible sales.
20. What is sales forecast?
Answer: Predicted future sales.
50 MCQs with Answers
1. MIS stands for:
Option: A. Marketing Information System
Answer: A
2. Part of MIS:
Option: B. Marketing intelligence
Answer: B
3. Order-to-payment cycle is:
Option: B. Internal records
Answer: B
4. Marketing intelligence comes from:
Option: C. External daily sources
Answer: C
5. Data mining means:
Option: C. Finding patterns in data
Answer: C
6. A demographic factor:
Option: B. Age
Answer: B
7. Inflation relates to:
Option: B. Economic environment
Answer: B
8. Values belong to:
Option: B. Sociocultural environment
Answer: B
9. Pollution relates to:
Option: B. Natural environment
Answer: B
10. Inventions relate to:
Option: C. Technological environment
Answer: C
11. Laws belong to:
Option: B. Political-legal environment
Answer: B
12. Market potential:
Option: B. Maximum demand
Answer: B
13. Penetrated market:
Option: D. Already buying customers
Answer: D
14. Target market:
Option: A. Chosen customers
Answer: A
15. Base sales:
Option: B. Market minimum
Answer: B
16. Maximum sales:
Option: C. Market potential
Answer: C
17. Company demand:
Option: B. Firm’s share of demand
Answer: B
18. Daily news scanning:
Option: B. Intelligence system
Answer: B
19. Competitor info source:
Option: A. Customer reviews
Answer: A
20. Not intelligence:
Option: D. Internal invoices
Answer: D
21. Data warehouse:
Option: C. Large data storage
Answer: C
22. Market demand depends on:
Option: A. Environment + marketing
Answer: A
23. A fad:
Option: B. Short-lived trend
Answer: B
24. A trend:
Option: C. Slow and durable
Answer: C
25. Megatrend:
Option: B. Long-term change
Answer: B
26. Marketing expenditure affects:
Option: B. Market demand
Answer: B
27. Market potential depends on:
Option: B. Environment
Answer: B
28. Demand measurements:
Option: C. 60
Answer: C
29. Market forecast:
Option: B. Expected demand
Answer: B
30. Marketing research:
Option: A. Planned studies
Answer: A
31. Social class:
Option: B. Cultural environment
Answer: B
32. Recycling laws:
Option: A. Legal environment
Answer: A
33. Population growth:
Option: C. Demographic environment
Answer: C
34. Advisory panel benefit:
Option: B. Product insight
Answer: B
35. Cookies help:
Option: B. Track online behavior
Answer: B
36. Mystery shoppers:
Option: D. Service quality
Answer: D
37. Intelligence must be:
Option: C. Legal & ethical
Answer: C
38. Internal records include:
Option: A. Order data
Answer: A
39. Sales quota:
Option: B. Target for salespeople
Answer: B
40. Sales budget:
Option: A. Conservative estimate
Answer: A
41. Expansible market:
Option: A. Can grow more
Answer: A
42. Non-expansible market:
Option: A. Market fixed
Answer: A
43. Market research chapter:
Option: B. Chapter 4
Answer: B
44. Water shortage:
Option: B. Natural issue
Answer: B
45. Marketing effort affects:
Option: B. Position on curve
Answer: B
46. Health consciousness:
Option: B. Social trend
Answer: B
47. Ethnic diversity:
Option: A. Demographic
Answer: A
48. Competitor intelligence:
Option: A. TV ads
Answer: A
49. Complaint website:
Option: B. Intelligence system
Answer: B
50. Penetration index:
Option: A. Current vs potential demand
Answer: A