,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)
6. c)
7. a)
8. d)
9. True
10. False:
11. b)
12. False
13. c)
14. b)
15. b)
16. True
17. a)
18. c)
19. c)
20. a), b)
,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
2. True or false: ‘Below-the-line’ promotion refers to mass marketing such as TV adverts.
3. Which one of the following is NOT one of Porter’s Five Forces?
a) Threat of new entrants
b) Bargaining power of suppliers
c) Bargaining power of competitors
d) Threat of substitute products or services
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
5. What does CPA stand for?
a) Customer per acquisition
b) Cost per acquisition
c) Cost per average margin
d) Customer per average cost
6. What does CLTV stand for?
a) Competitor Lifetime Value
b) Customer Lifetime View
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
b) Because customers may experience lifestyle changes
c) Because customers may change their job
d) Because customers may hear about a competitor.
12. True or false: The benefits of a product will be the same for everyone within a segment.
13. Which type of segmentation would help a company to understand whether their customers
are motivated by ‘green’ products?
a) Benefit
b) Behavioural
c) Psychographic
d) Geographic
14. How many personas would a business create, on average?
a) 1-5
b) 5-10
c) 10-15
d) 15-20
15. What do the letters on the BCG Matrix stand for?
a) Boston Consumer Group
b) Boston Consulting Group
c) Bolton Consulting Group
d) Bolton Consumer Group
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
Chapter 1: The foundations of digital marketing
Test bank answers
1. a), b), d), e)
2. False
3. c)
4. b)
5. b)
6. c)
7. a)
8. d)
9. True
10. False:
11. b)
12. False
13. c)
14. b)
15. b)
16. True
17. a)
18. c)
19. c)
20. a), b)
,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
2. True or false: ‘Below-the-line’ promotion refers to mass marketing such as TV adverts.
3. Which one of the following is NOT one of Porter’s Five Forces?
a) Threat of new entrants
b) Bargaining power of suppliers
c) Bargaining power of competitors
d) Threat of substitute products or services
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
5. What does CPA stand for?
a) Customer per acquisition
b) Cost per acquisition
c) Cost per average margin
d) Customer per average cost
6. What does CLTV stand for?
a) Competitor Lifetime Value
b) Customer Lifetime View
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
b) Because customers may experience lifestyle changes
c) Because customers may change their job
d) Because customers may hear about a competitor.
12. True or false: The benefits of a product will be the same for everyone within a segment.
13. Which type of segmentation would help a company to understand whether their customers
are motivated by ‘green’ products?
a) Benefit
b) Behavioural
c) Psychographic
d) Geographic
14. How many personas would a business create, on average?
a) 1-5
b) 5-10
c) 10-15
d) 15-20
15. What do the letters on the BCG Matrix stand for?
a) Boston Consumer Group
b) Boston Consulting Group
c) Bolton Consulting Group
d) Bolton Consumer Group
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
