Free CIM Level 4 Marketing Impact Practice Questions

Sample Practice Questions

Try these 10 sample questions from the CIM Level 4 Marketing Impact practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1What does CIM identify as the central management purpose of marketing?

   1. A.Satisfying customer requirements profitablyCorrect answer: A
   2. B.Maximising production volume independently
   3. C.Concentrating expenditure on advertising
   4. D.Matching every competitor's selling price

   Explanation: CIM states: "identifying, anticipating and satisfying customer requirements profitably.". CIM's definition links understanding customer requirements to profitable satisfaction; volume, advertising and price matching are narrower tactics.

   Reference: CIM Marketing and the 7Ps — p.3

2. 2An audit examines demographic change, technology and political developments. Which framework organises these broad external forces?

   1. A.BCG portfolio matrix
   2. B.PESTEL analysisCorrect answer: B
   3. C.Customer journey map
   4. D.Product life cycle

   Explanation: CIM states: "Macro environmental analysis – o PESTEL". PESTEL addresses the macro environment; portfolio, journey and life-cycle models examine different objects.

   Reference: CIM Marketing Impact Module Specification — p.6, 2.1

3. 3What is the purpose of dividing a customer market into segments?

   1. A.To apply a uniform message to everyone
   2. B.To divide customers into meaningful groupsCorrect answer: B
   3. C.To classify suppliers by contract value
   4. D.To replace market research with assumptions

   Explanation: business.gov.au target market guidance states: "splitting your target market into smaller groups of customers based on their characteristics and buying habits.". Segmentation identifies groups for focused marketing; it neither concerns suppliers nor replaces research.

   Reference: business.gov.au target market guidance — 2. Segment your market

4. 4A company aims to sell more of its existing products to its existing market. Which Ansoff strategy is this?

   1. A.Product development
   2. B.Diversification
   3. C.Market development
   4. D.Market penetrationCorrect answer: D

   Explanation: AQA Ansoff matrix teaching guide states: "the same customers with the same products.". Existing products and existing markets identify penetration; changing one or both dimensions gives the other strategies.

   Reference: AQA Ansoff matrix teaching guide — Market penetration

5. 5A firm fixes next year's promotion budget at 4% of last year's sales income. Which budgeting approach is it using?

   1. A.Objective-and-task
   2. B.Competitive parity
   3. C.Zero-based budgeting
   4. D.Percentage of salesCorrect answer: D

   Explanation: Monash Business School marketing dictionary states: "a fixed percentage of the sales income for the previous period.". A predetermined sales percentage controls the budget, rather than task costs, competitor activity or justification from zero.

   Reference: Monash Business School marketing dictionary — Marketing dictionary — Percentage-of-Sales Method

6. 6A team studies likely customer needs before those needs are expressed as orders. Which marketing role does this illustrate?

   1. A.Converting existing enquiries
   2. B.Anticipating customer requirementsCorrect answer: B
   3. C.Processing completed purchases
   4. D.Retaining current subscribers

   Explanation: CIM states: "identifying, anticipating". Anticipation concerns future requirements, rather than conversion, transaction processing or retention.

   Reference: CIM Marketing and the 7Ps — p.3

7. 7Which tool is associated with analysing an industry's competitive micro environment?

   1. A.SMART objectives
   2. B.Ansoff's growth matrix
   3. C.Porter's Five ForcesCorrect answer: C
   4. D.Marketing mix

   Explanation: CIM states: "Micro environmental analysis o Porters Five Forces". Five Forces examines competitive industry conditions, rather than objectives, growth directions or tactical mix.

   Reference: CIM Marketing Impact Module Specification — p.6, 2.1

8. 8What customer information should a useful target-customer profile describe?

   1. A.The organisation's internal job hierarchy
   2. B.Every product sold by all competitors
   3. C.The annual cost of production machinery
   4. D.Who the customer is and what they care aboutCorrect answer: D

   Explanation: business.gov.au target market guidance states: "Write a short profile of each customer explaining who they are and what they care about.". The profile captures customer identity and priorities rather than internal structure, machinery or a competitor catalogue.

   Reference: business.gov.au target market guidance — 3. Define your target customers

9. 9Which proposal follows the market-development strategy in Ansoff's matrix?

   1. A.Launching new products in new markets
   2. B.Taking existing products into new marketsCorrect answer: B
   3. C.Increasing existing-product sales in current markets
   4. D.Offering new products to current customers

   Explanation: AQA Ansoff matrix teaching guide states: "takes existing products and targets new customer segments.". The product is existing and the market is new, so this is market development.

   Reference: AQA Ansoff matrix teaching guide — Market development

10. 10Which statement describes competitive-parity budgeting for a marketing campaign?

    1. A.Matching a competitor's promotional activityCorrect answer: A
    2. B.Allocating a fixed share of previous sales
    3. C.Adding the costs of tasks needed for objectives
    4. D.Justifying each expenditure afresh from zero

    Explanation: Monash Business School marketing dictionary states: "based on matching the activity of a major competitor.". The reference point is competitor activity, not sales income, individually costed tasks or a fresh justification of every expenditure.

    Reference: Monash Business School marketing dictionary — Marketing dictionary — Competitive Parity Budgeting