Final Examination – 2019

Group -A

1. What is marketing?

Ans: Marketing is the management process which identifies, anticipate, and supplies customers requirements efficiently and profitable.

In other words, it is the process of understanding, creating and delivering profitable value to targeted customers better than the competition.

2. Define the selling concept of marketing.

Ans: The selling concept of marketing is all about convincing people to buy things through persuasive selling techniques, even if they weren’t originally planning to purchase those products or services.

3. Make a list of major components of the micro environment.

Ans: 1. Suppliers

2. Customers

3. Competitors

4. Intermediaries

4. Define market segmentation.

Market segmentation is a process that consists of sectioning the target market into smaller groups that share similar characteristics, such as age, income, personality traits, behavior, interests, needs or location. 

5. What is business buying behaviour?

Ans: Organizational buying behavior also called business buying behavior or organizational buying decision is the behavior of organizations while buying products or services that may buy such things for resale, reproduction, or to conduct an organization’s operations

6. What is market skimming pricing?

Ans: Market skimming pricing means setting high prices for new products to attract customers who are willing to pay a premium, then gradually lowering prices over time.

7. What is wholesaling?

Ans: Wholesaling is when a business buys products in large quantities from manufacturers and sells them to retailers in smaller batches, acting as a middleman between producers and sellers.

8. Define personal selling.

Ans: Personal selling is when a salesperson talks to customers one-on-one to convince them to buy something.

9. Give the meaning of a product.

Ans: A product is the item offered for sale. A product can be a service or an item. It can be physical or in virtual or cyber form. 

10. What is product positioning?

Ans: Product positioning is all about how you want the market to think about your product — and requires you to communicate how it can solve your customers’ problems better than its competitors.

Group – B

11. What is marketing mix? Explain the various components of marketing mix.

Ans: The marketing mix refers to the set of tools or tactics that a company uses to promote its products or services to its target customers. It typically includes the four Ps: Product, Price, Place, and Promotion. These elements are combined strategically to meet the needs of the target market and achieve the company’s marketing objectives.

The components of the marketing mix, often referred to as the “4 Ps,” are:

  1. Product: The goods or services offered by a company to meet the needs or desires of customers.
  2. Price: The amount of money customers pay for the product or service, determined by factors such as costs, competition, and perceived value.
  3. Place: The locations and channels through which customers can access and purchase the product or service, including distribution channels and retail outlets.
  4. Promotion: The various marketing activities and communication methods used to inform, persuade, and influence customers to purchase the product or service, such as advertising, sales promotions, public relations, and personal selling.

12. What is macro environment of marketing? Explain in brief the major component of the macro environment.

Ans: The macro-environment in marketing refers to the external factors that are beyond the control of an organization but still significantly influence its operations and strategies. These factors are usually broad and have a long-term impact on the entire industry or market.

Major components of the macro environment include:

  1. Demographic Factors: Characteristics of a population such as age, gender, income level, education, ethnicity, and family size. These factors influence consumer behavior, market size, and demand for products and services.
  2. Economic Factors: Economic conditions such as inflation rates, interest rates, unemployment levels, GDP growth, and exchange rates. These factors affect consumer purchasing power, business profitability, and overall market demand.
  3. Social and Cultural Factors: Cultural norms, values, beliefs, lifestyles, and trends that shape consumer preferences and behavior. Changes in societal attitudes or cultural shifts can impact product demand and marketing strategies.
  4. Technological Factors: Advancements in technology such as automation, digitalization, artificial intelligence, and communication technologies. These innovations can create new opportunities, disrupt industries, and change how businesses operate and market their products.
  5. Political and Legal Factors: Government regulations, policies, taxation, trade laws, and political stability. Changes in legislation or government actions can affect market access, production costs, and business operations.
  6. Environmental Factors: Concerns about environmental sustainability, climate change, and resource depletion. Increasing awareness of environmental issues can influence consumer preferences, demand for eco-friendly products, and regulatory requirements for businesses.
  7. Global Factors: International trade, globalization, geopolitical events, and cross-cultural differences. Global trends and events can impact market dynamics, supply chains, and business opportunities both domestically and internationally.

Understanding and monitoring these macro-environmental factors is crucial for businesses to adapt their strategies, identify opportunities, and mitigate risks in an ever-changing market landscape.

13. What are the requirement of effective market segmentation? Explain in brief.

Ans: Effective market segmentation requires several key requirements to ensure that the segmentation process leads to actionable and meaningful insights. These requirements include:

  1. Measurable: Segments should be measurable in terms of size, purchasing power, and other relevant characteristics. This allows marketers to quantify the potential of each segment and allocate resources accordingly.
  2. Accessible: Segments should be accessible through marketing channels such as advertising, distribution, and communication channels. Marketers need to be able to reach and engage with the identified segments effectively.
  3. Substantial: Segments should be substantial enough to justify the resources allocated to target them. A segment with sufficient size and purchasing power is more attractive to marketers as it represents a viable market opportunity.
  4. Differentiable: Segments should be distinguishable from one another based on their distinct needs, preferences, behaviors, or characteristics. Marketers need to identify clear differences between segments to develop tailored marketing strategies.
  5. Actionable: Segments should be actionable, meaning that marketers can design and implement targeted marketing strategies to effectively reach and serve the needs of each segment. Actionable segments enable marketers to make informed decisions and achieve measurable results.
  6. Responsive: Segments should be responsive to marketing efforts, meaning that they are likely to respond positively to targeted marketing messages and offers. Responsive segments allow marketers to generate desired outcomes such as increased sales or brand loyalty.

By meeting these requirements, marketers can effectively segment their target market and develop tailored marketing strategies that resonate with the needs and preferences of specific customer segments, ultimately driving business growth and profitability.

14. Give the meaning of product life cycle.Describe the marketing strategies for maturity and decline stages of product life cycle.

Ans:The product life cycle (PLC) is a conceptual model that describes the stages a product goes through from its introduction to its eventual decline in the market. The PLC consists of four main stages: introduction, growth, maturity, and decline.

  1. Introduction Stage: This is the stage when a new product is introduced to the market. Sales typically start low as consumers become aware of the product and its benefits. Marketing strategies in this stage often focus on creating awareness, generating interest, and promoting the unique features and benefits of the product. Pricing strategies may vary, with companies either setting high prices to capitalize on early adopters or employing penetration pricing to quickly gain market share.
  2. Growth Stage: In this stage, sales begin to increase rapidly as more consumers adopt the product. Competition may also intensify as other companies enter the market with similar offerings. Marketing strategies during the growth stage aim to maintain momentum and market share by expanding distribution channels, improving product quality, and building brand loyalty. Pricing strategies may become more competitive as companies strive to capture market share.

Now, let’s focus on the marketing strategies for the maturity and decline stages:

  1. Maturity Stage: During this stage, the rate of sales growth begins to slow down as the market becomes saturated and most potential customers have already adopted the product. Marketing strategies in the maturity stage often involve differentiating the product from competitors, extending the product line, and focusing on customer retention through loyalty programs or value-added services. Pricing strategies may involve offering discounts or promotions to maintain market share and attract price-sensitive customers.
  2. Decline Stage: In the decline stage, sales start to decline as consumer interest wanes, new technologies emerge, or consumer preferences shift towards alternative products. Marketing strategies in this stage may involve reducing costs, streamlining distribution channels, and selectively targeting niche markets where the product still holds value. Companies may also consider discontinuing the product or transitioning to a new product offering to remain competitive in the market.

Overall, effective marketing strategies throughout the product life cycle require a deep understanding of consumer needs, market dynamics, and competitive pressures to adapt and respond accordingly at each stage.

15. What is advertising? Explain its importance.

Ans: Advertising is a marketing communication strategy used by businesses and organizations to promote their products, services, or brands to target audiences. It involves creating and delivering persuasive messages through various channels such as television, radio, print media, digital platforms, social media, and outdoor signage.

The importance of advertising can be summarized as follows:

  1. Building Brand Awareness: Advertising helps to create brand recognition and familiarity among consumers. Through repeated exposure to advertising messages, consumers become more aware of the brand and its offerings, which can influence their purchasing decisions.
  2. Increasing Sales and Revenue: Effective advertising campaigns can lead to increased sales and revenue for businesses. By highlighting the features, benefits, and value propositions of products or services, advertising encourages consumers to make purchases and generate revenue for the company.
  3. Expanding Market Reach: Advertising enables businesses to reach a wider audience beyond their immediate geographic location. Through various advertising channels and platforms, companies can target specific demographics, interests, or market segments, thereby expanding their market reach and potential customer base.
  4. Creating Customer Engagement: Engaging and creative advertising campaigns can capture the attention and interest of consumers, leading to increased customer engagement and interaction with the brand. Through interactive and multimedia advertising formats, businesses can encourage participation, feedback, and brand interaction from consumers.
  5. Differentiating from Competitors: Advertising allows businesses to differentiate themselves from competitors by highlighting unique selling propositions, competitive advantages, and brand positioning. Effective advertising campaigns can communicate the distinctiveness of a brand and why it stands out in the market.
  6. Building Brand Loyalty: Consistent and compelling advertising helps to build brand loyalty among consumers. By reinforcing positive associations, perceptions, and emotions with the brand, advertising can strengthen the bond between the brand and its customers, leading to repeat purchases and long-term loyalty.
  7. Educating Consumers: Advertising serves as a tool for educating consumers about new products, features, or innovations in the market. Through informative and persuasive messaging, advertising can raise awareness, clarify misconceptions, and address consumer needs or concerns.

Overall, advertising plays a crucial role in the success of businesses by driving brand awareness, increasing sales, expanding market reach, fostering customer engagement, differentiating from competitors, building brand loyalty, and educating consumers about products or services.

Group -C

16. Define the term ‘buying behavior’. Explain, with example , the process of consumer buying decision.

Ans: Organizational buying behavior also called business buying behavior or organizational buying decision is the behavior of organizations while buying products or services that may buy such things for resale, reproduction, or to conduct an organization’s operations

Process:

1. Recognizing a Need or a Problem

Recognizing the need or requirement of the organization; such as stationeries, furniture, flooring and furnishing, raw materials, parts, computers, etc. is the first step of an organizational buying process.

2. Determining the Product & Buying Specification

It is the second step of the organizational buying process. This step involves determining the product and buying specifications such as product quality, quantity price, mode of payment, delivery date, place, design of the product, etc.

3. Listing and Identifying the Suppliers

In this third step, the organization identifies the potential suppliers that can supply goods and services according to the accepted product specifications and mutually agreed on terms and conditions.

4. Evaluation and Selecting Most Reliable and Competent Supplier

Here the organization evaluates and chooses the most reliable supplier who can supply products to the organization according to its requirements. While evaluating the supplier various criteria may be concerned such as past performance of the supplier, regularity, punctuality, product price, quality, delivery time, firm’s relations with supplier, reliability, etc.

5. Purchase Decision

At this stage of organization buying, the organization makes an actual purchase of required goods or services. 

6. Evaluation of Performace of Supplier

This is the post-purchase step of the organizational buying process. It involves evaluating the supplier’s sales performance. The evaluation may be done based on the quality of the supplier’s service, business efficiency, punctuality, etc. If the organization is satisfied with the past purchase behavior, the decision may be done to make a repurchase from the same supplier or a similar product from any supplier. If not, maybe the organization again repeat all the steps.

17. What is new product? Describe the new product development process with a suitable example.

Ans: A new product is any product or service that is introduced to the market for the first time or significantly improved upon to meet changing consumer needs, technological advancements, or market demands. New products can range from tangible goods such as electronic devices and food products to intangible services like software applications and consulting services.

New Product Development Process:

The new product development process typically involves several stages, each aimed at systematically bringing a new product from concept to market. These stages may vary depending on the industry, company size, and specific product characteristics. Here’s a simplified overview of the new product development process:

  1. Idea Generation: The process begins with the generation of ideas for new products or improvements to existing products. Ideas can come from various sources such as market research, customer feedback, brainstorming sessions, competitor analysis, and internal R&D efforts.
  2. Idea Screening: Once ideas are generated, they are evaluated and screened to identify those with the most potential for further development. Screening criteria may include market demand, feasibility, profitability, alignment with company objectives, and strategic fit.
  3. Concept Development and Testing: Selected ideas are developed into product concepts that outline the key features, benefits, and value propositions of the proposed product. These concepts are then tested with target consumers to gather feedback, assess interest, and refine the concept based on consumer preferences and needs.
  4. Business Analysis: In this stage, a thorough analysis is conducted to assess the financial viability and business potential of the proposed product. Factors such as estimated sales volumes, production costs, pricing strategy, revenue projections, and return on investment (ROI) are evaluated to determine whether the product is economically feasible.
  5. Prototype Development: If the business analysis yields positive results, a prototype or working model of the product is developed to test its functionality, performance, and design. Prototypes allow for further refinement and iteration based on feedback from internal stakeholders and potential customers.
  6. Market Testing: Before full-scale production and launch, the product is tested in a limited market or controlled environment to gauge consumer response, validate demand, and identify any potential issues or challenges. Market testing may involve pilot launches, test markets, or focus groups to gather insights and fine-tune marketing strategies.
  7. Commercialization: Finally, if the product successfully passes through all previous stages and meets the necessary criteria, it is ready for full-scale production and commercialization. This involves manufacturing, distribution, marketing, and sales efforts to bring the product to market and capture consumer interest.

Example:

Let’s consider the example of a technology company developing a new smartphone:

  1. Idea Generation: The company gathers input from market trends, customer feedback, and internal R&D to identify opportunities for a new smartphone that incorporates innovative features and addresses evolving consumer needs.
  2. Idea Screening: Potential smartphone concepts are evaluated based on market demand, technological feasibility, competitive landscape, and strategic fit within the company’s product portfolio.
  3. Concept Development and Testing: A few promising smartphone concepts are developed into detailed product concepts, which are then tested with focus groups and target consumers to assess interest, preferences, and usability.
  4. Business Analysis: The company conducts a comprehensive financial analysis to estimate production costs, projected sales volumes, pricing strategy, and potential return on investment for each concept.
  5. Prototype Development: Based on the selected concept, the company creates a prototype of the new smartphone to test its functionality, design, and performance. Feedback from internal stakeholders and beta testers is used to refine the prototype.
  6. Market Testing: The prototype is tested in a limited market or among select groups of consumers to gather feedback, assess demand, and refine marketing strategies before a wider launch.
  7. Commercialization: Upon successful market testing and refinement, the company proceeds with full-scale production, marketing campaigns, and distribution channels to launch the new smartphone to the public, aiming to capture market share and generate revenue.

18. Define the production mix. Describe its components.

Ans:

The term “production mix” refers to the combination of goods and services that a company produces to meet the demands of its customers. It encompasses the range of products and services offered by a business to fulfill various needs and preferences of consumers in the marketplace.

Components of Production Mix:

  1. Product Line: The product line refers to a group of related products or services offered by a company that serve similar purposes, target similar customer segments, or are sold through similar channels. A product line typically consists of multiple products or service offerings that share common characteristics or attributes.
  2. Product Width: Product width refers to the number of different product lines that a company offers. A company with a wide product width offers a diverse range of product lines catering to different market segments or consumer needs, while a company with narrow product width focuses on a limited range of product lines.
  3. Product Depth: Product depth refers to the variety of products or services within each product line. It measures the number of different versions, variations, or options available within a particular product line. A product line with deep product depth offers a wide range of choices to customers, whereas a product line with shallow product depth provides fewer options.
  4. Product Mix Width: Product mix width refers to the total number of product lines offered by a company across all its product categories. It represents the overall breadth of the company’s product portfolio and reflects the diversity of its offerings in the market.
  5. Product Mix Length: Product mix length refers to the total number of products or services within the company’s entire product mix. It measures the overall size or scale of the company’s product portfolio, including the total number of distinct offerings available to customers across all product lines.
  6. Product Mix Depth: Product mix depth refers to the average number of products or variations within each product line. It calculates the extent of differentiation or variety within the company’s product offerings and indicates the level of customization or specialization available to customers within each product category.

Overall, the production mix of a company is a strategic consideration that involves balancing product width, product depth, and product mix to effectively meet customer needs, achieve competitive advantage, and maximize business performance in the marketplace.

FINAL EXAMINATION – 2074

Group – A

1. Differences between selling concept and modern marketing concept.

Ans: The differences are as follows:

  1. Selling Concept:
    • Focus: This concept revolves around the idea of aggressive selling and promotion to push products or services onto customers.
    • Mindset: Businesses adopting this concept believe that customers will buy a product or service only if it is heavily promoted and pushed towards them.
    • Priority: The primary goal is to sell what the company produces rather than what the market demands.
    • Perspective: It’s more about the company’s needs and objectives rather than fulfilling customer needs.
  2. Modern Marketing Concept:
    • Focus: This approach shifts the focus from merely selling products to understanding and fulfilling customer needs and wants.
    • Mindset: Businesses adopting this concept prioritize building relationships with customers and delivering value to them.
    • Priority: The primary goal is to identify and meet the needs of customers effectively, even if it means adapting products or services accordingly.
    • Perspective: It’s customer-centric, meaning it revolves around understanding customer preferences, behaviors, and desires.

2. List out the marketing process.

Ans: a. Market Research

b. Market Segmentation

c. Targeting

d. Positioning

e. Marketing Mix

f. Implementation

g. Evaluation and Control

h. Feedback and Iteration

3. Point out the types of buying behaviour.

Ans:

4. What do you mean by product positioning?

5. Define market segmentation.

6. Write the features of service product.

7. What do you understand by trade mark?

8. Give any two reasons for price change.

9. What do you mean by indirect marketing channel?

10. Define sales promotion with examples.

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