[GDMMgt] Graduate Diploma in Marketing
Management Certification Exam
Preparation
**Question 1.** Which management theorist is most closely associated with the principle of
“one best way” to perform a job?
A) Fayol
B) Taylor
C) Drucker
D) Mayo
Answer: B
Explanation: Frederick Taylor pioneered scientific management, advocating a “one best way” for
tasks.
**Question 2.** In Fayol’s 14 principles of management, which principle emphasizes the need
for a clear hierarchy?
A) Unity of command
B) Division of work
C) Authority and responsibility
D) Scalar chain
Answer: D
Explanation: The scalar chain refers to the chain of command from top to bottom.
**Question 3.** Which of the following functions of management involves setting objectives
and determining the best course of action?
A) Organizing
B) Planning
C) Leading
D) Controlling
,[GDMMgt] Graduate Diploma in Marketing
Management Certification Exam
Preparation
Answer: B
Explanation: Planning is the function that defines goals and selects strategies to achieve them.
**Question 4.** A firm that sells a homogeneous product at a price equal to marginal cost
operates in which market structure?
A) Monopoly
B) Oligopoly
C) Perfect competition
D) Monopolistic competition
Answer: C
Explanation: Perfect competition features identical products and price equal to marginal cost.
**Question 5.** The price elasticity of demand is most likely to be **elastic** for a product
that is:
A) A necessity with few substitutes
B) A luxury with many substitutes
C) An essential drug with no close substitutes
D) A staple food with limited alternatives
Answer: B
Explanation: Luxury items with many substitutes tend to have elastic demand.
**Question 6.** Which marketing orientation focuses primarily on satisfying customer needs
rather than just selling products?
A) Production orientation
,[GDMMgt] Graduate Diploma in Marketing
Management Certification Exam
Preparation
B) Sales orientation
C) Market orientation
D) Product orientation
Answer: C
Explanation: Market orientation centers on identifying and meeting consumer needs.
**Question 7.** The shift from a “selling” to a “societal marketing” concept adds which of the
following considerations?
A) Maximizing short‑term sales volume
B) Long‑term profit only
C) Consumer welfare and societal well‑being
D) Reducing production costs
Answer: C
Explanation: Societal marketing balances company profits with consumer and societal welfare.
**Question 8.** In a PESTEL analysis, the “E” stands for:
A) Ethics
B) Economy
C) Environment
D) Education
Answer: C
Explanation: PESTEL includes Political, Economic, Social, Technological, Environmental, and Legal
factors.
, [GDMMgt] Graduate Diploma in Marketing
Management Certification Exam
Preparation
**Question 9.** Which micro‑environment element directly influences a firm’s pricing decisions
by affecting input costs?
A) Competitors
B) Suppliers
C) Customers
D) Intermediaries
Answer: B
Explanation: Suppliers determine the cost of raw materials, impacting pricing.
**Question 10.** According to the “five forces” model, the threat of new entrants is highest
when:
A) There are high capital requirements
B) Brand loyalty is strong
C) Switching costs are low
D) Government regulations are strict
Answer: C
Explanation: Low switching costs make it easier for new firms to attract customers.
**Question 11.** Which stage of the consumer decision process involves evaluating alternative
brands against criteria?
A) Problem recognition
B) Information search
C) Evaluation of alternatives
D) Post‑purchase behavior
Management Certification Exam
Preparation
**Question 1.** Which management theorist is most closely associated with the principle of
“one best way” to perform a job?
A) Fayol
B) Taylor
C) Drucker
D) Mayo
Answer: B
Explanation: Frederick Taylor pioneered scientific management, advocating a “one best way” for
tasks.
**Question 2.** In Fayol’s 14 principles of management, which principle emphasizes the need
for a clear hierarchy?
A) Unity of command
B) Division of work
C) Authority and responsibility
D) Scalar chain
Answer: D
Explanation: The scalar chain refers to the chain of command from top to bottom.
**Question 3.** Which of the following functions of management involves setting objectives
and determining the best course of action?
A) Organizing
B) Planning
C) Leading
D) Controlling
,[GDMMgt] Graduate Diploma in Marketing
Management Certification Exam
Preparation
Answer: B
Explanation: Planning is the function that defines goals and selects strategies to achieve them.
**Question 4.** A firm that sells a homogeneous product at a price equal to marginal cost
operates in which market structure?
A) Monopoly
B) Oligopoly
C) Perfect competition
D) Monopolistic competition
Answer: C
Explanation: Perfect competition features identical products and price equal to marginal cost.
**Question 5.** The price elasticity of demand is most likely to be **elastic** for a product
that is:
A) A necessity with few substitutes
B) A luxury with many substitutes
C) An essential drug with no close substitutes
D) A staple food with limited alternatives
Answer: B
Explanation: Luxury items with many substitutes tend to have elastic demand.
**Question 6.** Which marketing orientation focuses primarily on satisfying customer needs
rather than just selling products?
A) Production orientation
,[GDMMgt] Graduate Diploma in Marketing
Management Certification Exam
Preparation
B) Sales orientation
C) Market orientation
D) Product orientation
Answer: C
Explanation: Market orientation centers on identifying and meeting consumer needs.
**Question 7.** The shift from a “selling” to a “societal marketing” concept adds which of the
following considerations?
A) Maximizing short‑term sales volume
B) Long‑term profit only
C) Consumer welfare and societal well‑being
D) Reducing production costs
Answer: C
Explanation: Societal marketing balances company profits with consumer and societal welfare.
**Question 8.** In a PESTEL analysis, the “E” stands for:
A) Ethics
B) Economy
C) Environment
D) Education
Answer: C
Explanation: PESTEL includes Political, Economic, Social, Technological, Environmental, and Legal
factors.
, [GDMMgt] Graduate Diploma in Marketing
Management Certification Exam
Preparation
**Question 9.** Which micro‑environment element directly influences a firm’s pricing decisions
by affecting input costs?
A) Competitors
B) Suppliers
C) Customers
D) Intermediaries
Answer: B
Explanation: Suppliers determine the cost of raw materials, impacting pricing.
**Question 10.** According to the “five forces” model, the threat of new entrants is highest
when:
A) There are high capital requirements
B) Brand loyalty is strong
C) Switching costs are low
D) Government regulations are strict
Answer: C
Explanation: Low switching costs make it easier for new firms to attract customers.
**Question 11.** Which stage of the consumer decision process involves evaluating alternative
brands against criteria?
A) Problem recognition
B) Information search
C) Evaluation of alternatives
D) Post‑purchase behavior
