BBA 204 Exam reference Material

Q.1. “Marketing has greater importance for its contribution to society”. Explain.
(Explanation of statement, Importance to the society) 2, 8

ANS:

Explanation of statement

Marketing is a very important aspect in business since it contributes greatly to the success of the
organization. Production and distribution depend largely on marketing. Marketing is the father of
innovation; product development; promoter of entrepreneurial talent; developer of economy;
stimulator of consumption and higher standard of living and guardian of price system. Apart from
contributing to the development of the nation as a whole, marketing has greater importance for its
contribution to society and individual business firm.

Importance to the society

Below given points shows the importance of marketing from the point of view of society.

1) Marketing is a connecting link between the consumer and the producer. Marketing process brings
new and new items to retail shops, from where the consumers can have them.

2) Marketing helps in increasing the standard of living of people. Because of mass production, costs of
manufacturing and marketing have come down. This facilitates the fixing of cheaper rates and is a
boon to the society. Thus, reduction in price will result in a higher standard of living.

3) Marketing helps to increase the nation's income. Efficient system of marketing reduces the cost to
the minimum; this in turn lowers the prices and the consumer's purchasing power increases. This will
increase the national income.

4) Marketing process increases employment opportunities. For continuous production, continuous

marketing is needed. Continuous marketing invites numerous activities and thus job opportunities
are provided to many people. In a country like India, this is true, because these are sources of
livelihood to many people.
5) Marketing creates modern cultivators. The poor farmer gets the new and developed methods of
cultivation-useful implements, tools; fertilizers etc. at his door and thus embrace the advantages of
developed cultivation method.

6) Marketing removes the imbalances of supply by transferring the surplus to deficit areas, through
better transport facilities.

7) Marketing helps to maintain economic stability and rapid development in under developed or
developing countries. If production is more than demand, the excess goods cannot be sold at
acceptable price. Thus, there would be glut in the market, resulting in fall in price, and depression
creeps in. Similarly, if production is less than demand, prices shoot up, resulting in inflation. In such
situations, marketing maintains the economic stability by balancing the two aspects-production and
consumption.

8) Marketing includes all activities in the creation of utilities-form, place, time and possession.

Q.2. “Every marketing strategy should have adequate control mechanisms to ensure
that it is properly implemented”. In the light of this statement, explain the techniques
used in marketing control. (Explanation of the statement, Explanation of techniques) 2,
8

ANS:

Explanation of the statement

The primary function of the marketing department of any organisation is the implementation of a
marketing strategy which fits in with the needs of the organisation, in relation to its environment.
However, such a strategy should also have adequate control mechanisms to ensure that it is properly
implemented. If the strategy does not have any control mechanisms, its execution may be delayed or
severely impaired, so that it remains only on paper. In order to avoid the failure of the marketing
program, organisational controls have to be in place. Marketing control involves gathering
information on marketing performance and measuring it against the desired objectives. It ensures
that the organisational resources are properly utilised for achieving the marketing and organisational
objectives. The focus of control should be towards present and future action and marketing controls
should provide fast feedback whenever there are deviations from the plan. They should also monitor
key functions such as sales volume, market share, costs, profits, productivity, promotion and sales.

Explanation of techniques
The techniques in details are given below:

Budgeting: Preparing the marketing budget is elaborate as it involves sales forecasting, budgeting,
expenses and profit planning. In order to exercise budgetary control, the organisation should prepare
control statement, which shows the difference between the budgeted numbers and achieved numbers.
A periodic review of the statement can help in controlling the costs and expanding profits. Good
budgetary control ensures that there is a separate plan for every product and market, so as to be
prepared for any changes in the environment. It would reveal variant figures and deviations that are
far from the expected normal. Such analysis helps in course correction, so that deviations can be
controlled and the marketing strategy can be brought back on track.

Marketing Audit: Marketing audit is the control mechanism in which a systematic study is
undertaken for the total marketing efficiency of the organisation. The company cannot afford to turn a
blind eye towards its marketing programs and claim that it is smooth in its functioning. The company
needs to periodically assess whether the marketing strategy, policies and programs undertaken in the
past are relevant in the present and future. Such an assessment can be made with the aid of the
marketing audit.

Information and Research: The marketing information and research which is done for the
preparation of the marketing plan can also be used as tools for marketing control. Timely information
and research helps to identify deviations from the normal course of the strategy. Such information
can also be used for analysis of market standing, effectiveness of advertising and promotions, and
effectiveness of the channels of distribution. The examples of marketing information, which can be
used as control information, are –
a. Information on marketing objectives and goals

b. Information on actual performance in the market

c. Information on threats and opportunities

Q.3. Assume that you are a marketing manager of a company who wants to
manufacture cars that won’t cause any pollution. What process would you adopt to help
company in developing this new product? (Explanation of the process) 10

ANS:

Explanation of the process

The processes we adopt to help company in developing this new product are:
Idea generation: Product planning starts with the creation of product ideas. The continuous search
for new scientific knowledge provides the clues for meaningful idea formation. Ideas may also
originate from consumers, salesmen, middlemen, scientists, technologists, consultants etc.

Screening: It means critical evaluation of product ideas generated. After collecting the product
ideas, the next stage is screening of these ideas. The main object of screening is to abandon further
consideration of those ideas which are inconsistent with the product policy of the firm. The product
ideas are expected to be favourable and will give room for consumer satisfaction, profitability, a good
market share, firm's image etc. All the ideas cannot be accepted, because certain product plans need
huge amount of investments, for certain plans raw materials may not be available, certain plans may
not be practicable etc. Many of the ideas are rejected on account of many reasons and thus eliminate
unsuitable ideas. Only promising and profitable ideas are picked up for further investigation.

Business Analysis: This stage is an evaluation of product idea in depth to determine its financial,
competitive marketing situations etc. Market analysis involves a projection of future demand,
financial commitment and return thereon. Financial specialists analyse the situation by applying
break-even analysis, risk analysis, etc. Business analysis will provide the economic prospects of the
new product.

Product Development: The idea on paper is converted into product. The product is shaped
corresponding to the needs and desire of the buyers. Product development is the introduction of new
products in the present market. New or improved products are offered by the firm to the present
markets so as to satisfy the present customers. Laboratory tests, technical evaluations etc., are part of
this product development stage.

Test Marketing: By test marketing, we mean, what is likely to happen, by trial and error method
when a product is introduced commercially into the market. These tests are planned and conducted in
selected geographical areas, by marketing the new products. The reactions of consumers are
monitored to aid in uncovering the product faults, if any, which might have escaped the attention in
the development stage. With this, future difficulties and problems are eliminated. This type of
pretesting is essential for a product before it is mass produced and marketed. Sometimes, at this
stage, management may make a decision to accept or reject the idea of marketing products.

Commercialization: This is the final stage of product planning. At this stage, production starts;
marketing programme begins to operate; and products flow to the market for sale. It has to compete
with the existing products to secure maximum share in the market-sales and profits. When a product
is born, it enters into the markets; and like human beings, has a life span-known as product life cycle.
Q.4. “A Brand is developed through diligent market research”. Explain the various
steps which are undertaken in the formation of a brand name with the help of examples
at every step. (Explanation of the steps, Examples) 7, 3

ANS:

Explanation of the steps

The various steps which are undertaken in the formation of a brand name and logo are as follows –

a) Selection of brand name – The brand needs to convey a particular meaning to consumers. The
first step in the creation of the brand is to select the elements such as brand name and logo. It is
important to choose a good brand name which is easy to remember, recall and pronounce. The brand
name should also be precise and appealing to the consumer and must communicate what the product
stands for in the market place.

A few famous examples are –

 Aqua guard – Guards water

 Ford Ikon – Indicates that the car is an icon or landmark image

 IBM – Acronym for the company’s name (International Business Machines)

 Coca Cola – Use of the company’s name as brand name can also create strong value.

b) Selection of logo – A logo is the symbol of the brand represented as a picture. Along with the
brand name, the logo helps to identify the brand. It is a creative symbol which reinforces the visual
imagery of the brand in the minds of the consumer. It becomes inseparable from the brand over time.
The logo must increase the brand’s relevance and staying power in the market.

A few examples are –

 Girl with butter and sandwiches – Amul Butter

 Swoosh – Nike

c) Legal rights – The brand name and logo should be chosen so that it can be registered and
protected legally under the laws of the land.
d) Characteristics of the brand – The brand name should be unique, have pleasant associations
and should be appealing. A few examples are Good Knight, Milkmaid, Maggi, Boost and Fair &
Lovely. The brand name or logo should not be used generically or commonly, as this leads to the
dilution of the brand value. A few examples of brand names which are being used commonly are
Xerox, Band-Aid, Aspirin, Kodak and Eveready.

A few examples are –

 Dog listening to gramophone – HMV (His Master’s Voice)

e) Permanence – The brand name and logo should be stable and should not be affected by time.
The brand should not be named after some item which is in fashion or is chic at the moment as these
may lose value after some time. Some examples of enduring brands are Eicher, Singer and Vicco
Vajradanti.

A few examples are –

 Gattu (Little boy with paint brush and dripping can of paint) – Asian Paints

f) Positioning – The brand should project the value of the product in the consumers’ minds. It is
important to develop the right positioning platform for the brand so that this value proposition
reaches the customer.

g) Brand portfolio – The brand portfolio of the company must be strengthened by activities such as
the right type of acquisitions, monitoring through the various cycles of the product, correct
distribution and visibility, maintaining the product quality and analysing the performance as well as
the market perception of the brand.

Q.5. What are the various factors that influence the selection of the channel of
distribution by a manufacturer? (Explanation of the factors) 10

ANS:

Explanation of the factors

The selection of the proper channel of distribution must be made by a manufacturer or producer
through a careful study of the various factors that influence the channel choice. The various factors
that influence the selection of the channel of distribution by a manufacturer or producer or the factors
affecting channel decisions are:
i) Product Characteristics: Product characteristics refer to the various characteristics of a
product, such as its class (i.e., whether it is a consumer product or an industrial product, and if it is a
consumer product, whether it is a convenience 'product or shopping product or speciality product,
and if it is an industrial product, whether it is a raw material, or operating supply or fabricating part
or a capital equipment), its nature (i.e., whether it is a durable product or a perishable product), its
bulk and size, its uses, its price, the frequency of change in fashion, the frequency of its purchase, the
sales and after-sales services required by the product, etc.

ii) Customer Characteristics: Customer characteristics refer to the number of potential buyers,
their geographical dispersion, their frequency and regularity of purchases, their average purchases,
their buying motives, etc. The customer characteristics influence the selection of the channels of
distribution considerably. For instance, direct sale or sale through short channels is, usually practiced
when the customers are few in number, concentrated in a limited geographical area and they
purchase large units infrequently and regularly. On the other hand, lengthier marketing channels are
used when the customers are large in number and are widely distributed, and they purchase small
quantities frequently and irregularly.

iii) Marketing or Channel Intermediaries Characteristics: Middlemen characteristics refer to

the number of middlemen available for distributing the products, their willingness to undertake the
work of distribution, their location, their size and financial strength, their product lines, their sales
potentiality, their behaviour, etc. The middlemen characteristics also exert considerable influence on
the selection of the channels of distribution.

iv) Supply Characteristics: Supply characteristics refer to the number of producers or suppliers,
their concentration or dispersion, the quantum of their supplies, etc. The supply characteristics also
influence the selection of the channels of distribution. For instance, if the producers or suppliers are
few in number and are geographically concentrated in a limited area, direct selling or selling through
short channel of distribution is practiced. On the other hand, if the producers are large in number and
are widely dispersed, then, a long channel of distribution is used.

v) Distribution Policies of the Producer or Manufacturer: A company may adopt the policy
or practice of intensive distribution or maximum distribution (i.e., distribution of a product through
as many channels as possible); selective distribution (i.e., the distribution of a product through a
selected number of intermediaries); limited agency distribution (i.e., the distribution of a product
through a few or limited agencies) or exclusive agency distribution (i.e., the distribution of a product
through an exclusive or single agency). The distribution policy followed by a company has a great
bearing upon the selection of the channel of distribution.

vi) Channels of Rivals: While selecting the channels of distribution, the effectiveness of the
channels of distribution adopted by the rivals should be studied. If the channels of distribution
adopted by the rivals are found to be effective, it is preferable to adopt the same channels of
distribution. This is because these channels are familiar to the purchasers, and it is very easy to reach
out to the customers through the familiar channels.

vii) Company Characteristics: Company characteristics refer to the various characteristics of the
manufacturing company, such as its size, financial position, product mix etc. The company
characteristics also play an important role in the selection of the channels of distribution. For
instance, a big concern with strong financial position and wide product lines can afford to engage in
direct selling. On the other hand, a small and financially weak concern with a narrow product line is
forced to use the service of middlemen for the distribution of its products.

viii) Economic Conditions and Laws of the Country: Economic conditions influence the
selection of the channels of distribution. For instance, when economic conditions are depressed,
shorter channels of distribution are preferable.

ix) Costs of the Marketing Channels: The relative costs of the various channels of distribution
also influence the selection of the channels of distribution. Generally, those channels which ensure
efficient distribution and secure the desired sales volume at the lowest possible costs are chosen by a
manufacturer or producer.

Q.6. Write short notes on: 5, 5

a) Advertising

b) Criteria for effective segmentation

ANS:

a) Advertising

Advertising is the dissemination of information about a product, or service or idea sponsored by a

person at his expense to create a demand for his product or service. Advertising consist of all the
activities in presenting to a group a nonpersonal ,oral or visual, openly sponsored message regarding
a product, service or idea. American Marketing Association defines advertising as “any paid form of
non-personal presentation and promotion of ideas, goods or services by an identified sponsor”. So,
from the above definition we learnt that -

• Advertisement is a message to large groups.

• It is in the form of non-personal communication.

• It persuades the general public to purchase the goods or service, advertised.

• Advertising messages are identified with the advertiser.

• It is paid for, by the advertiser.

Features: The essential elements of advertising can be listed as follows:

a) Matter of record: It is a matter of record furnishing information for the benefit of buyers. It
guides or helps buyers to make satisfactory purchases.

b) Non-personal communication: It is a mass non-personal communication, reaching large

groups of buyers. It is not delivered by actual person and not addressed to a person.

c) Persuasion of buyers: Advertising complements or may substitute for personal selling.to

persuade the buyers. The advertiser makes his products, buyer-satisfying. It is an art of influencing
the human action to possess one’s product.

d) Paid form of publicity: Advertising is a paid form and hence commercial in nature.

e) Identifiable with the sponsor: Advertising is identifiable with its sponsoring authority or
advertiser. It discloses or identifies the source of opinions and ideas it presents.

b) Criteria for effective segmentation

An organisation cannot be omnipresent in all segments of a market. Generally, organisations segment

the marketplace and choose to be present only in such segments which are profitable. In order to
identify the effective segments for operation, the company must base the segmentation strategy on
some criteria, as enumerated below. According to Kotler, there are five criteria for the effective
segmentation of the markets. These are –

a. Measurability – The organisation must be able to measure the variables of the given market
segment by undertaking suitable efforts. This criteria is especially useful for demographic and
geographic variables.

b. Relevance – Both the size and potential of a particular market segment must be substantial to
justify the marketing efforts for such a segment.

c. Accessibility – The particular segment must be accessible to the organisation, especially for
targeting the marketing communication and promotions or offers.
d. Feasibility – The segmentation should enable to formulate marketing program for that segment
specifically. It should also be feasible to implement such a program.

e. Distinction – The segments should be distinct from one another and should respond differently
to different marketing offers.

Apart from the above criteria of Kotler, there are other criteria for effective segmentation, as follows –

i. Responsiveness – The market segment should respond to the marketing programs. This can be
gauged by understanding the motives for buying amongst a particular segment of customers.

ii. Effective demand – While a segment may exhibit responsiveness to the product, it is also
important that the segment has adequate buying power, i.e., willingness to buy coupled with the
ability to pay for the product.

iii. Size – The organisation should analyse whether the market is sizeable for providing profits. The
segment should be neither too large that the organisation cannot service it nor too small that there are
no profits from the same. The company should also be clear whether the product is meant for the
mass market or a premium segment.

iv. Growth orientation – The organisation should analyse whether the segment is effective in
providing growth in the future. If found that the particular segment has immense growth potential,
then the organisation should immediately focus on that segment.

v. Profitability – The organisation has to understand whether a particular segment is profitable in

the long term.

Q7. The brand is the symbol of the product’s personality. It is developed though diligent
market research and is based on the customer’s needs and wants. Explain the various
steps which are undertaken in the formation of a brand with examples.

(Definition of brand, Steps involved in brand development, Examples)2, 2, 4

Answer.

Brand

Any brand is a set of perceptions and images that represent a company, product or service. Brand
Name is a brand or part of a brand consisting of a word, letter, and group of words or letters
comprising a name which is intended to identify the goods or services of a seller or a group of sellers
and to differentiate them from those of competitors. The aim of branding is to convey brand message
vividly, create customer loyalty, persuade the buyer for the product, and establish an emotional
connectivity with the customers.

Steps involved in brand development

To get to the brand positioning statement and communications strategy, we go through a series of
steps called the brand development process. it is a structured way of thinking that examines the
drivers of a business to ensure the relevant information is being considered in the positioning. below
is a schematic of the process:

There are five major steps in the process. the first is the preparation stage, in which relevant
background information is gathered, including business objectives, reviewing or conducting research
if required, looking at current materials from the brand and it’s competitors, and interviewing the key
stakeholders in the organization.

The second step is to conduct the analysis stage, including looking at the major aspects of the
business (current and future objectives, and risk factors), the brand (core strategy, leverageable
differentiators, and organizational values), the market (trends, customer needs, and brand
perceptions), and the competition (positionings, strategic gaps, and emerging players).

The third step is the definition stage, where we determine the brand objective (what do we do?), the
differentiators (what are we best at?), our credibility (why should they believe it?), and our personality
(who are we?). this leads to crafting our brand positioning statement (the what for whom, why).

The fourth step is the implementation stage. it includes developing the communications strategy,
determining the internal and external communications tactics, the measurement tools, and agreeing
on how to kick-off the program with employees.

After the brand positioning statement, the communications strategy, and the implementation tactics
have been developed, then in the creative stage, the appropriate communications tools, such as
websites, collateral, advertising, media relations, and events can be determined. this becomes it’s own
separate process.

Examples

An example of effective brand propositioning can be found in a well known computer company’s line
of television commercials. The commercials successfully convey the brand’s statement that goes
something like this; if you buy our PC’s, we’ll customize the computer to fit all your needs, you’ll have
access to our award winning customer service, you’ll have less hassle to worry about, and best of all,
you’ll be cool.

The brand’s promise is easy to understand, engaging, unique, relevant (to the target audience), and
consistent.

Q8. Describe the methods of environmental analysis-SWOT, PEST.

(Strength, Weakness, Opportunity, Threat, Political, Economic, Social, Technological Environment) 5,

5

Answer.

Methods of environmental analysis-SWOT, PEST

Environmental analysis is the assessment of environmental factors which affect marketing activities.
SWOT is an abbreviation for Strengths, Weaknesses, Opportunities and Threats. SWOT analysis is a
strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats
involved in a project or in a business venture. It involves specifying the objective of the business
venture or project and identifying the internal and external factors that are favorable and unfavorable
to achieve that objective.

Let us discuss SWOT analysis with examples

Strengths: characteristics of the business or team that give it an advantage over others in the
industry. For example, Microsoft’s strength is its operating system – ‘Windows and related software
applications’ is used by a large customer base all over the world.

Weaknesses: are characteristics that place the firm at a disadvantage relative to others. For
example, weakness can be high attrition rate.

Opportunities: external chances to make greater sales or profits in the environment. For example,
changing lifestyle of people- the firm can make use of their capability to cater to the changing lifestyle
of people which in turn could help company to gain profits.
Threats: external elements in the environment that could cause trouble for the business. For
example, the small retail shops owners found a great threat when big retailers began their operations
in India.

PEST analysis stands for "Political, Economic, Social, and Technological analysis". It describes a
framework of macro-environmental factors used in the environmental scanning component of
strategic management. It is a part of the external analysis when conducting a strategic analysis or
doing market research, and gives an overview of the different macro environmental factors that the
company has to take into consideration.

Political environment
The developments in the political environment strongly influence marketing decisions. The
constituents of political environment include laws, statutes, government agencies and political
parties. The marketers should use the political climate in favour of their products.

Technological environment
Today, technology is the most vital factor for any firm. Using the latest technology often creates
opportunities for new products and markets. Developments made in the field of electronics,
computers and telecommunications are extraordinary. They have changed consumer’s lifestyle and
their consumption pattern. Internet advertising, online shopping etc., have influenced the distributing
pattern of goods and services.

Economic and Legal environment

Marketers are required to follow rules and regulations framed under the law of the operating country
with regards to pricing, advertising and all marketing activities.

Q8. Define Marketing Planning. Explain about the two different Competitive marketing
strategies.

(Definition of Market Planning, Price based marketing strategies, Differentiation based marketing
strategies) 2, 2, 4

Answer.

Market Planning

An organization or business needs to plan its marketing strategy in order to launch its products in any
market. Such marketing planning involves the usage of the market information in order to assess the
market conditions.
Price based marketing strategies

Companies which use price based strategies, have price as their competitive advantage i.e. they sell at
lower prices but still make profits. If a company wants to use price as the leverage, then such a
company should also have cost leadership, i.e., the company should have a cost advantage over
competition. The cost advantage can arise from a number of factors such as economies of scale,
volume or location. The price can be kept at a lower range only if the company is able to have cost
advantage in the longer period. Once the cost advantages are removed, it may not be sustainable for
the company to have low pricing.

For example, Maruti’s strategy for it 800 model relies on successful pricing. It revolutionized the
nation’s thinking by making cars affordable to the general public. This was possible due to the
advantages of size (large
production capacity resulted in lowering the cost per unit).

Differentiation based marketing strategies

In a differentiation strategy, the company offers a unique proposition to the buyers by way of
differentiation from competition. The differentiation strategy can be based upon the product,
distribution channels or promotion.

Some of the examples for the above types of differentiation are –

Differentiation based on product – E.g., Microsoft Windows, Gillette, Coffee cafes like Cafe
Coffee Day and Barista

Differentiation based on distribution – E.g., ITC’s e-Choupal, which is a village internet kiosk
providing the following – Farmer information on crops & weather, buy farm produce & sell ITC
products. This helped ITC to penetrate interior rural markets.

Differentiation based on promotion – E.g., Nike, Coco-cola, Pepsi, Dove, Ray Ban have been
promoted by long standing advertisements and promotions worldwide.

Q9. Define Product mix. Explain the factors determine the decisions of the Product
mix.

(Definition of Product mix, Factors determine the decisions of the product mix) 2, 8

Answer.

Product mix
A product mix (also called product assortment) is the set of all product lines and items that a
particular seller offers for sale to buyers." An organization with several product lines has a product
mix. Product mix need not consist of related products. In other words, product mix is "the composite
of products offered for sale by a firm." It is a collection of products manufactured or distributed by a
firm. For instance, a firm manufactures watches, machinery items, electric lamp etc. Product mix has
four main characteristics or dimensions and they are (1) Length (2) Width (3) Depth (4) Consistency.

Factors determine the decisions of the product mix

The marketer should consider a number of factors before arriving at a fair conclusion. The following
factors, usually, influence the product mix decision of a firm:

i) Changes in market demand:

Changes in market demand are one of the factors influencing the product mix. When there is a change
in market demand for a product, there will be a change in the product mix.

ii) Cost consideration (i.e., Cost of production):

The cost consideration, i.e., the cost of production, is one of the factors influencing the product mix.

iii) Advertising and distribution factors:

A firm using a wide net-work of advertising and distribution channels can think of adding new
products to its product line, as they can be distributed with the help of the same network.

iv) Image of the Producer:

Sometimes, product mix of an enterprise is changed to improve the image of the producer. For
instance, a decision may be taken to produce product of only high quality just to improve the image of
the producer.

v) Objective of maximization of profits:

The objective of maximization of profits influences the product mix. The product mix is required to be
changed so as to earn maximum profits.
vi) Competitors' action and reaction:
A firm may have to change its product mix due to competitors' action and reaction.

vii) Financial resources of the firm:

Financial resources of the firm also decide its product mix. A firm may add new product lines
according to its financial capacity during the period of prosperity so as to increase its profitable sales
volume or drop out some existing items during the period of depression, when its financial resources
are not adequate to carry on the production of all the products.
viii) Production influences:
Production capacity of a firm influences its product mix. A firm may change its product mix with a
view to use its production capacity more effectively and efficiently, and thereby, reduce its overall net
production cost.

ix) Marketing efforts:

Sometimes, the change in the product mix of an enterprise may be necessary to get the maximum
results of marketing efforts of the enterprise.

Q11. Define Service Marketing. Explain the strategies for Services Marketing.

(Definition of Service Marketing, Strategies for service marketing)2, 8

Answer.

Service Marketing

Service marketing refers to the concept of creation and delivery of value for the satisfaction of the
customer, which provides a profit to the seller or service provider.

Strategies for service marketing

The important strategies that help in marketing of services are:-

a) Deepening of customer relationship – In the fast pace of modern life, customers look for one-
stop-shop solutions for most of their purchasing needs. This helps them to save time and costs and
provides consolidation of services. Also, a customer who has multiple relationships with a service
provider will tend to be more loyal and will provide higher volumes of business due to the
concentration of services. So, service providers adopt the strategy of cross-selling other products to an
existing customer, thereby increasing the customer loyalty. For example, banks cross selling products
to customers.

b) Social relationships – Service is an intangible element which is heavily dependent upon the
people factor. For providing a successful service, it is important to develop inter-personal
relationships with the customers. The service provider has to understand the personality traits of the
customer, so as to serve them better. For example, clubs are formed on social relationships between
members.

c) Customisation – Could also be referred to as personalisation of services. If the service provider is

able to customise the service to suit the consumer’s needs, then such a strategy is very effective in the
marketing of services. Customisation of the user experience satisfies the human need for seeking
attention and makes the customer to feel valued. This increases the brand loyalty and seeks to retain
the customer within the organisation. For example, restaurants or hotels remembering their guest’s
preferences.

d) Structural bonding – Some service industries provide structural or infrastructural support to its
customers by integrating the customers into the organisational systems and processes. This helps to
strengthen the relationship with the customer. As the customer becomes used to the organisation’s
processes, it becomes a tool of customer loyalty. This type of bonding can be used for both individuals
as well as organisations. For example, airlines providing SMS or e-mail alerts for passengers.

Thus, the organisation can use any one or a combination of the above strategies in order to ensure
that the customer is satisfied with the service and remains faithful to the brand. These strategies can
also be customized to suit the individual needs of the organisations.

Q12 Define Green Marketing. What are the reasons for which companies adopt green
marketing?

(Definition of Green marketing, Reasons for which companies adopt green marketing) 2, 8

Answer.

Green marketing

Green marketing is a type of marketing in which the products and services of an organisation are sold
to its customers, based on their environmental benefits. The product or service is promoted so that it
is eco-friendly or that it is packaged in eco-friendly manner using recyclable material. According to
the American Marketing Association, “Green marketing is the marketing of products that
are presumed to be environmentally safe”. It is also called as Environmental or Ecological
marketing.

Reasons for which companies adopt green marketing

This type of marketing covers a range of activities which include the production and packaging of the
product as well as special marketing campaigns designed for green marketing. As the planet’s
resources are limited, there is an immense pressure for maximum utilization of resources. Today,
consumers are also aware of the benefits of environment friendly businesses. Hence, it has become
important for organisations to develop environmentally sustainable products and services. Green
marketing has also served to increase the markets for businesses, as well as provide a competitive
advantage. the reasons for which companies should adopt green marketing practices –
a) Corporate Social Responsibilities (CSR) – This has become a watchword for organisations
across the globe today. While companies exist for making profits, it is also important for companies to
give back in some way to the environment and society in which they function. Companies have some
social responsibilities to the countries and societies in which they operate and hence they cannot be
driven by the idea of increasing their bottom lines only.

b) Governmental pressure – Many governments across the globe have evolved legislation to
ensure that companies function within the sphere of business and also that they are accountable to
the society and country, in case of violation of laws or exploitation of the environmental resources.

Now let us see what companies should do for Green marketing:

Genuineness – Green marketing campaigns have to be genuine and consistent with the company
policies. The company should carry out only such practices as it claims in its campaigns.

Customer education – It is important to follow sustainable practices by educating the customers

about the benefits of green marketing. It is essential for the customers to be aware of the marketing
campaign as well as the logic behind the campaign so that the customer identifies with the campaign.

Customer participation – While the customer should be educated on the benefits of green
marketing, it is also important for the customers to participate in the campaign. This is also a tool for
building customer relationships as the customer identifies himself with the company’s campaign.

Thus, it is evident from the above factors that the company may be induced to adopt a green
marketing campaign due to the pressures from various sources such as the customer, government and
society.

QNO13. List out the promotion tools. Discuss the steps involved in developing an integrated promotional
mix.

Definition of Promotion 2

List of promotional tools 2

Steps involved in integrated promotional mix 6

ANSWER –

In the words of Philip Kotler, “Promotion compasses all the tools in the marketing mix whose major role is
persuasive communication”.
 According to the Mason and Rath, “Promotion consists of those activities that are designed to bring
a company’s goods and services to the favourable attention of customers”. According to William J. Stanton,
“Promotion includes advertising, personal selling, sales promotion and other selling tools.”

From the above definitions, it is clear that promotion is the co-ordinated, self-initiated efforts to
establish channels of information and persuasion to facilitate or foster the sale of goods or services, or the
acceptance of ideas or points of view.

Promotional tools are –

1) Advertising

2) Sales promotion

3) Personal selling

4) Direct marketing

5) Public Relations and Publicity

6) Online marketing

Developing an integrated promotion mix

Marketing efforts incorporate the "marketing mix". Promotion is one element of marketing mix.
Integrated promotional activities include advertising (by using different media), sales promotion (sales and
trades promotion), and personal selling activities. It also includes Internet marketing, sponsorship marketing,
direct marketing, database marketing and public relations. Integration of all these promotional tools, along
with other components of marketing mix, is a way to gain an edge over a competitor. Integrated promotion
mix may also be referred as integrated marketing communication mix.

Steps in Developing an Integrated promotion mix: An integrated marketing communication plan

takes a look at all of the available communication options that are likely to reach and connect with a target
audience and determines which methods, in what combination, will be most likely to achieve the desired
results. The steps in developing this plan involve: establishing a clear goal and measurable objectives,
understanding the target audience and their needs and preferences, evaluating the pros/cons of various
communication options, and identifying and implementing communication tactics.

i) Establishing a Clear Goal and Measurable Objectives

The first step in developing an integrated marketing communication plan is defining your goal and related
objectives. A goal is a broad statement of some desired end point – "become the market share leader in our
primary market area," for instance. Objectives relate to the goal and provide more specificity in terms of
measurable outcomes within a defined time frame.

ii) Understanding the Target Audience

Your goal and objectives will give you some direction in terms of the general target market that you will be
attempting to influence. But you need to define your target market more precisely. In this example, than "25-
to-55-year-old women" to ensure your success at effectively influencing a purchase decision. The more you
can learn about your target market's needs and preferences, the better you will be able to select the right
communication methods and create the right messages to send through those channels.

iii) Evaluating Communication Options

Marketers today are fortunate that they have an ever-expanding list of options for communicating with their
target audiences. This can also be unfortunate, however, from the standpoint of having to wade through all of
the options and pick the right mix to maximise effectiveness and minimise cost. A first step is to consider all of
the communication channels that are likely to reach the target group you have identified. This may include
traditional media (television, newspapers, radio) as well as new media (social networking sites, blogs, mobile
messaging). There is no single mix of options that will work for everyone.

iv) Implementing Communication Tactics

The creation, scheduling and implementation of communication tactics in an integrated marketing campaign is
a critical driver for success. Marketers should consider when and where they wish to reach their consumers
and which methods to use, in what order and at what frequency. The goal should be to reach as many
members of the target audience as many times as possible with messages that will have staying power, so that
these messages will not only be noticed, but will drive action designed to achieve the goal and objectives in
the plan.

QNO14.Describe the methods of environmental analysis-SWOT, PEST.

Strength, Weakness, Opportunity, Threat 5

Political, Economic, Social, Technological Environment 5

Answer -

Strength, Weakness, Opportunity, Threat

SWOT is an abbreviation for Strengths, Weaknesses, Opportunities and Threats.SWOT analysis is a strategic
planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a
project or in a business venture. It involves specifying the objective of the business venture or project and
identifying the internal and external factors that are favorable and unfavorable to achieve that objective.

SWOT analysis is an important tool for auditing the overall strategic position of a business and its
environment. Strengths and weaknesses are internal factors.

Let us discuss SWOT analysis with examples

Strengths: characteristics of the business or team that give it an advantage over others in the industry. For
example, Microsoft’s strength is its operating system – ‘Windows and related software applications’ is used by
a large customer base all over the world.

Weaknesses: are characteristics that place the firm at a disadvantage relative to others. For example,
weakness can be high attrition rate.
Opportunities: external chances to make greater sales or profits in the environment. For example, changing
lifestyle of people- the firm can make use of their capability to cater to the changing lifestyle of people which
in turn could help company to gain profits.

Threats: external elements in the environment that could cause trouble for the business. For example, the
small retail shops owners found a great threat when big retailers began their operations in India.

A SWOT analysis should identify a corporation’s core competencies, along with the opportunities that
the organisation is not currently able to take advantage of due to lack of appropriate resources. This is
essential because subsequent steps in planning for achievement of the selected objective may be derived from
the SWOT analysis.

Political, Economic, Social, Technological Environment -

PEST analysis stands for "Political, Economic, Social, and Technological analysis". It describes a
framework of macro-environmental factors used in the environmental scanning component of strategic
management. It is a part of the external analysis when conducting a strategic analysis or doing market
research, and gives an overview of the different macro environmental factors that the company has to take
into consideration. It is a useful strategic tool for understanding market growth or decline, business position,
potential and direction for operations.

The growing importance of environmental or ecological factors in the first decade of the 21st century
has given rise to green business and encouraged widespread use of an updated version of the PEST
framework.

A PEST analysis incorporating legal and environmental factors is called a PESTLE analysis.

Specifically the PEST or PESTLE analysis is a useful tool for understanding risks associated with market
growth or decline, and as such the position, potential and direction for a business or organization. PESTLE
analysis is a useful tool for understanding the “big picture” of the environment, in which you are operating,
and the opportunities and threats that lie within it. By understanding the environment in which you operate
(external to your company or department), you can take advantage of the opportunities and minimize the
threats.

QN15. The brand is the symbol of the product’s personality. It is developed though diligent market research
and is based on the customer’s needs and wants. Explain the various steps which are undertaken in the
formation of a brand with examples.

Definition of brand 2

Steps involved in brand development 6

Examples 2
ANSWER -

The term brand has a broad meaning and is applied to all visible identification such as trademarks, symbols,
pictures, package designs and signage with distinctive lettering. The brand ensures that the product has higher
recall in the minds of the customers and that there is a guarantee on quality and standards as per the
advertising for the brand.

Branding provides a specific name to the product or group of products in an organisation. By using a
specific name, the product can be defined uniquely and can be distinguished from those of competition. A
brand that is well promoted earns a name in the market place and becomes difficult to compete with.

A brand is a symbol of ownership and quality. It cannot be equated to the product as it is a more
comprehensive term which conveys positioning of the product in the market place. The consumer relates the
brand name to the product.

The various steps which are undertaken in the formation of a brand name and logo are as follows –

a) Selection of brand name – The brand needs to convey a particular meaning to consumers. The first step in
the creation of the brand is to select the elements such as brand name and logo. It is important to choose a
good brand name which is easy to remember, recall and pronounce. The brand name should also be precise
and appealing to the consumer and must communicate what the product stands for in the market place.

A few famous examples are –

Aqua guard – Guards water

Ford Ikon – Indicates that the car is an icon or landmark image

IBM – Acronym for the company’s name (International Business Machines)

Coca Cola – Use of the company’s name as brand name can also create strong value

b) Selection of logo –

A logo is the symbol of the brand represented as a picture. Along with the brand name, the logo helps to
identify the brand. It is a creative symbol which reinforces the visual imagery of the brand in the minds of the
consumer. It becomes inseparable from the brand over time. The logo must increase the brand’s relevance
and staying power in the market.

A few examples are –

Girl with butter and sandwiches – Amul Butter

Swoosh – Nike

C) Legal rights – The brand name and logo should be chosen so that it can be registered and protected legally
under the laws of the land.

d) Characteristics of the brand – The brand name should be unique, have pleasant associations and should be
appealing. A few examples are Good Knight, Milkmaid, Maggi, Boost and Fair & Lovely. The brand name or
logo should not be used generically or commonly, as this leads to the dilution of the brand value. A few
examples of brand names which are being used commonly are Xerox, Band-Aid, Aspirin, Kodak and Eveready.

e) Permanence – The brand name and logo should be stable and should not be affected by time. The brand
should not be named after some item which is in fashion or is chic at the moment as these may lose value
after some time. Some examples of enduring brands are Eicher, Singer and Vicco Vajradanti.

f) Positioning – The brand should project the value of the product in the consumers’ minds. It is important to
develop the right positioning platform for the brand so that this value proposition reaches the customer.

g) Brand portfolio – The brand portfolio of the company must be strengthened by activities such as the right
type of acquisitions, monitoring through the various cycles of the product, correct distribution and visibility,
maintaining the product quality and analysing the performance as well as the market perception of the brand.

The above factors must be reviewed and improved upon from time to time, so as to build the brand equity of
the organization’s flagship products.

QN16. Define Product mix. Explain the factors determine the decisions of the Product mix.

Definition of Product mix 10

Factors determine the decisions of the product mix

ANSWER -

A product mix (also called product assortment) is the set of all product lines and items that a particular seller
offers for sale to buyers." An organisation with several product lines has a product mix. Product mix need not
consist of related products. In other words, product mix is "the composite of products offered for sale by a
firm." It is a collection of products manufactured or distributed by a firm. For instance, a firm manufactures
watches, machinery items, electric lamp etc. Product mix has four main characteristics or dimensions and they
are (1) Length (2) Width (3) Depth (4) Consistency.

Factors Determining the Product Mix:

It is very difficult to determine the exact number of product items or lines in which a firm should deal. The
marketer should consider a number of factors before arriving at a fair conclusion. The following factors,
usually, influence the product mix decision of a firm:

i) Changes in market demand:

Changes in market demand are one of the factors influencing the product mix. When there is a change in
market demand for a product, there will be a change in the product mix. If the demand for any new product
has been constantly increasing, and if the firm is capable of producing that product economically, efficiently
and profitably and competing with its rivals, then, it can include the new product in its product mix. In case the
demand for any of its existing products has been declining constantly, then, it can remove that particular
product from its product mix and can also suspend its production.

ii) Cost consideration (i.e., Cost of production):

The cost consideration, i.e., the cost of production, is one of the factors influencing the product mix. If a firm is
able to produce a new product at a lower cost with its available machinery, labour, etc., it can produce the
new product and expand its product mix. This will help the firm to bring down the cost of production of its
existing products. Thus, cost consideration influences the product mix of a firm.

iii) Advertising and distribution factors:

A firm using a wide net-work of advertising and distribution channels can think of adding new products to its
product line, as they can be distributed with the help of the same network. This will also bring down its
advertising and distribution costs. Thus, advertising and distribution factors influence the product mix of firm.

iv) Image of the Producer:

Sometimes, product mix of an enterprise is changed to improve the image of the producer. For instance, a
decision may be taken to produce product of only high quality just to improve the image of the producer.

v) Objective of maximization of profits:

The objective of maximization of profits influences the product mix. The product mix is required to be changed
so as to earn maximum profits. The production of less profitable products may be stopped and the production
of more profitable products may be increased to maximize profits.

vi) Competitors' action and reaction:

A firm may have to change its product mix due to competitors' action and reaction. For instance, if the
competitors have made any change in packing, size, colour, price, etc. of their products, relevant changes have
to be made in the product mix of the enterprise also.

vii) Financial resources of the firm:

Financial resources of the firm also decide its product mix. A firm may add new product lines according to its
financial capacity during the period of prosperity so as to increase its profitable sales volume or drop out some
existing items during the period of depression, when its financial resources are not adequate to carry on the
production of all the products.

QN017.Define Green Marketing.

What are the reasons for which companies adopt green marketing? 2
Definition of Green marketing 2 Reasons for which companies adopt green marketing 8

Answer -

Green Marketing: Green marketing is a type of marketing in which the products and services of an
organisation are sold to its customers, based on their environmental benefits. The product or service is
promoted so that it is eco-friendly or that it is packaged in eco-friendly manner using recyclable material.
According to the American Marketing Association, Green marketing is the marketing of products that are
presumed to be environmentally safe.

Let us now analyse the reasons for which companies should adopt green marketing practices.

a) Corporate Social Responsibilities (CSR): This has become a watchword for organizations across the globe
today. While companies exist for making profits, it is also important for companies to give back in some way to
the environment and society in which they function. Companies have some social responsibilities to the
countries and societies in which they operate and hence they cannot be driven by the idea of increasing their
bottom lines only.

b) Governmental pressure : Many governments across the globe have evolved legislation to ensure that
companies function within the sphere of business and also that they are accountable to the society and
country, in case of violation of laws or exploitation of the environmental resources.

Now let us see what companies should do for Green marketing:

Genuineness: Green marketing campaigns have to be genuine and consistent with the company policies. The
company should carry out only such practices as it claims in its campaigns.

Customer education: It is important to follow sustainable practices by educating the customers about the
benefits of green marketing. It is essential for the customers to be aware of the marketing campaign as well as
the logic behind the campaign so that the customer identifies with the campaign.

Customer participation: While the customer should be educated on the benefits of green marketing, it is also
important for the customers to participate in the campaign. This is also a tool for building customer
relationships as the customer identifies himself with the company’s campaign.

Thus, it is evident from the above factors that the company may be induced to adopt a green marketing
campaign due to the pressures from various sources such as the customer, government and society.

Green marketing mix consists of the 4 Ps of marketing but these are adapted in an innovative fashion.

The 4 Ps of green marketing are;

1) Product: Products have to be designed in such a manner that they reduce the consumption of resources as
well as the environmental pollution.

2) Price: Green products normally are priced at a premium as the cost of manufacturing them may be greater
than the traditional manufacture. The customers have to be aware of the extra value that they obtain from
green products, so that they are ready to pay the premium price.

3) Promotion: Green marketing can be promoted in three ways, namely, advertisements which establish the
relationship between the product and environment, advertisements which promote a green lifestyle and
advertisements which project the environmental responsibility of the company.

4) Place: It is also important to decide the location where the green products are available, as customers may
not go out of their comfort zone in search of green products.
QNO18 Explain the personal, socio-cultural, Psychological determinants of consumer behaviour.

Definition of consumer behaviour 1

Personal determinants- Consumer demographics ,Consumer psychographics 3

Socio-Cultural determinants- Social factors , Cultural factors Environmental factors 3

Psychological determinants—Perception, Learning, Memory Motivation 3

ANSWER -

Definition of consumer behaviour

A consumer is a person who consumes the goods and services available in the market place. The consumer is
the person who ensures that there is a demand for a particular product or service in the market place.

Personal determinants There are two main personal factors which influence an individual consumer, as
follows –

a. Consumer demographics – These are the factors such as age, education level, income group, economic
capacity, etc, which determine the buying behaviour of consumers.

b. Consumer psychographics–These are the factors such as attitude, values, lifestyle, self-image, status and
prestige which have an impact on the buying behaviour. While the consumers may have the same or similar
demographic profile, there may be a large variance in the psychographic profiles which influence the buying
decisions.

Socio-cultural determinants

The socio-cultural factors which determine buyer behaviour can be classified as follows –

a. Social factors –

Each individual has a definite role in societal activities and is also influenced by the social factors. The social
groups, with which the individual interacts, have a bearing in the consumer behaviour. A consumer’s social
groups are of three types, namely, intimate groups (Family, friends, peers, etc), secondary groups (groups
based on occupation, residence, professional bodies, etc) and society (this is the larger social tier or group to
which the individual belongs).

b. Cultural factors – Culture refers to the set norms or rules or conduct which has been taught to the individual
from childhood. A person’s culture influences food, clothes, locality of residence, practices. Culture
accompanies an individual from cradle to the grave. Hence, culture also plays a significant role in the social
and buying behaviour of the consumer.

c. Environmental factors – In the current age of information overload, the buyer is exposed to heavy
advertising and promotion of products through diverse media such as television, internet, etc. The buyer is
influenced into buying a product due to the extensive marketing campaigns launched by the organisations.

Psychological determinants

Apart from the physical factors, there are certain psychological factors which influence the buying decisions.
The psychological aspects of behaviour have been discussed by thinkers such as Freud and Maslow, who have
analysed the deep-seated needs of human beings which lead to characteristic behaviour.

a. Perception – This is the process in which the buyer assimilates the information which comes to him from
numerous sources.

b. Learning – When individuals learn new ideas, they tend to evaluate their ideas and beliefs and try to
incorporate the new learning into them.

c. Memory – Brand visibility and constant reinforcement through marketing communication and advertising
helps to embed the product in the buyer’s minds. This also leads to better recall of the brand, which is a crucial
factor to influence the buying decisions.

d. Motivation – Motives refer to the needs which have been awakened in a buyer. The buyer gets motivated
to achieve their goals or motives, when they become aware of such needs. An effective marketing manager
succeeds in awakening the need of the customer for the product. This leads to a buying decision by the
customer for the product.

e. Attitudes – Attitudes influence the buying decisions to a large extent. Attitude, either positive or negative,
may be developed from the perception with regard to product or the organisation. Attitude may also be
developed due to other external parameters.

1. The word ‘Market’ is derived from the Latin word ______________.

Answer- Mercatus

2. State true or false: In its strict meaning, market need not necessarily mean a place of exchange.

Answer- True

3. Although physical markets are still vital, ____________ supported by IT networks such as the
internet have become the largest and most liquid.

Answer- Virtual market place

4. When exchanges are confined within a family or close members of the family, such a market can be
called as _____________.

Answer- Family market

5. State True or False: Foreign exchange market is an international market.

Answer- True

6. ________________ is a market where shares, debentures, bonds etc., of companies are purchased or
sold.

Answer- Stock exchange market

7. _______________ refers to all those activities involve in identifying the present and potential
requirements of the consumers for goods and services.

Answer- Marketing

8. In the words of _______________, "Marketing is that phase of business activity through which
human wants are satisfied by the exchange of goods and services."

Answer- J.F. Pyle

9. According to Cundiff and Still, "Marketing is the business process by which ______________ are
matched with the market and through which transfers of ownership are effected."

Answer- Products

10. Name the system of exchange that existed in the initial stage of marketing.

Answer- Barter

11. State true or false: In the pre-industrial period, the difficulties of barter system were removed by
adopting common mediums of exchange like cows, pigs, slaves, shells, sheep.

Answer- True

12. The creation of modern marketing is the result of _______________

a) Industrial Revolution c) Decentralised exchange

b) Barter system d) Pre-industrial period

Answer- Industrial Revolution

13. ______________ is a particular method of doing an activity, generally involving a series of steps
or operations.

Answer- Process

14. Which of the following is NOT an element of traditional marketing mix?

a) Product b) Pricing c) Promotion d) Process

Answer- d) Process
15. Production and distribution depend largely on _______________.

Answer- Marketing

16. If production is less than demand, prices shoot up, resulting in ______________.

Answer- Inflation

17. Marketing is a connecting link between the consumer and the ______________.

Answer- Producer

18. Collecting marketing information is a marketing function that’s related to

_______________________.

a) Exchange b) Physical supply

c) Facilitating d) Marketing mix

Answer- c) Facilitating

19. The functions of _____________ refer to those functions which are concerned with the creation of
place and time utilities.

Answer- Physical supply

20. _____________ and grading are facilitating functions.

Answer- Standardisation

21. __________ is an act of obtaining a desired product or service from someone by offering
something in return.

Answer- Exchange

22. Marketing, involves exchange of a product between a seller and a buyer based on ________
onsiderations.

Answer- Monetary

23. The _________ concept does not cover all the vital ingredients of marketing.

Answer- Exchange

24. The ________ concept of marketing is one of the oldest marketing concepts.

Answer- Production

25. Which of the following is the criticism against the production concept?

a) Consumers are not given personal attention

b) Marketing expenses are costly

c) No efforts are made for reducing the competition

d) There is large number of buyers and sellers

Answer- a) Consumers are not given personal attention

26. Which of the following marketing philosophy believes and operates with the guiding force that the
consumers will prefer those products which are available at the right time and at right places?

a) Production concept c) Product concept

b) Exchange concept d) Marketing concept

Answer- d) Production concept

27. ___________ concept was the marketing philosophy till 1930.

Answer- Product

28. Product concept is that marketing philosophy which believes and operates on the principle that
________ allures consumers.

Answer- Quality

29. One of the criticisms against the _______ concept is the assumption that no marketing effort is
required since the quality of the product is good.

Answer- Product

30. The main criticism against the _______ concept is that it gives emphasis on increasing sales
volume, and not on consumer satisfaction.

Answer- Selling

31. ________ assumes that any product does not sell itself.

Answer- Selling concept

32. Which of the following concept is a common approach for any marketing effort?

a) Selling b) Production c) Marketing d) Product

Answer- Selling

33. In which year did the modern marketing concept came into being and gained momentum?

a) 1950 c) 1970

b) 1960 d) 1990

Answer- 1950

34. ________ concept is not just putting sales efforts, but, understanding customers’ needs and wants
before putting any sales efforts.

Answer- Modern marketing

35. According to________, "the marketing concept-holds the key to achieve organisational goals
consistent with the needs and wants of the target market and deliver the desired satisfaction more
effectively and efficiently than competitors".
a) Philip Kotler b) Rajan Nair

c) Stanton d) American Marketing Association

Answer- a) Philip Kotler

36. The societal marketing concept is also known as the _______ concept or ecological concept.

Answer- Human

37. ________ concept serves the business world as well as the society as a whole.

Answer- Societal

38. The societal marketing concept has gained momentum since ________.

a) 1980 b) 1940 c) 1985 d) 1970

Answer- a) 1980

39. _______ concept clearly suggests that marketing risks can be reduced only by knowing and
understanding the market.

Answer- Marketing

40. As per marketing concept _______ receive top consideration in all business activities

Answer- Customers’ needs and wants

41. The most common method for preparing a marketing environmental analysis is to conduct a
________ analysis.

Answer- PESTLE

42. PESTLE analysis stands for analysis of _______ Economic, Social, Technological, Legal and
environmental factors affecting business.

Answer- Political

43. _______ are often factors that a business cannot control.

Answer- External forces

44. What is an abbreviation for Strengths, Weaknesses, Opportunities and threats?

Answer- SWOT

45. State True or False: PEST is a useful tool for understanding risks associated with market growth or
decline.

Answer- True

46. A PEST analysis is used to identify the _______ forces affecting an organization

Answer- External
47. ________ is an organization of employees formed on a continuous basis for the purpose of
securing diverse range of benefits.

Answer- Trade Union

48. Trade unions are voluntary associations formed for the pursuit of protecting the common interests
of its ________.

Answer- Members

49. _______ is a set of understandings or meanings shared by a group of people.

Answer- Culture

50. ________ provide the resources required by the company to produce its goods and services.

Answer- Suppliers

51. To overcome competition, a company must provide greater _______ than its competitors.

Answer- Customer satisfaction

52. ________ market consists of wholesaler and retailers.

Answer- Reseller

53. ________ environment consists of those forces which are external to the firm.

Answer- Macro

54. ________ means the study of human population in terms of size, density, location, age, gender,
race, occupation and other statistics.

Answer- Demography

55. Political and legal environment are __________ environment factors.

Answer- Macro

56. The term marketing mix was coined by _________________________.

Answer- Neil H. Borden

57. ___________________ categorised the components of the marketing mix into the universally
recognized 4 Ps of marketing – Product, price, place and promotion.

Answer- E. Jerome McCarthy

58. ______________ contributed to the mix by adding an additional 3 Ps to the existing mix – People,
process and physical evidence.

Answer- Boom and Bitner

59. ______________ normally refers to the goods or services offered by a company which satisfies the
needs or wants of a customer.

Answer- Product
60. State True of False: While preparing the product mix, it is important to communicate the core
benefit of the product to the consumer.

Answer- True

61. ____________ is a tool of revenue generation for marketing.

Answer- Price

62. ________________ are the sub-marketers or intermediaries who distribute the company’s
products.

Answer- Distribution channels

63. State True or False: An advertisement is a tool to grab the attention of an individual and using the
attention to communicate a message about the product.

Answer- True

64. State True or False: The Three additional Ps of marketing were introduced to meet the needs of the
manufacturing industry.

Answer- False

65. ______________ is a systematic arrangement which results in the delivery of service.

Answer- Process

66. _______________ refers to the external factors or surroundings which aid the customer in making
a judgement about the company.

Answer- Physical evidence

67. ___________ Training are crucial for the services industry.

Answer- Behavioural and attitude training

68. _________________ is a process by which value is delivered to the customer.

Answer- Marketing,

69. The marketing process is a combination of the _____________ variables and the _____________
variables.

Answer- Environmental, marketing mix

70. State True or False: The marketing programme of the organisation is effective only if the
components of the marketing mix are properly synthesised into a unified whole.

Answer- True

71. An analysis which outlines the route map for the marketing strategy of an organisation is called as
_____________________.

Answer- “Marketing Planning”

72. _____________ is an important process of integration and co-ordination within the organisation.

Answer- Control

73. State True or False: Control techniques ensure that marketing objectives are achieved effectively.

Answer- False

74. ________________________ is the process by which the organisational objectives of the entire
company are formulated.

Answer- Strategic corporate planning

75. Choose the correct answer: In an organisation, SBU stands for __________________

a. Substitute Business Unit

b. Sub Business unit

c. Strategic Business Unit

d. Standard Business Unit

Answer- (c) Strategic Business Unit

76. State True or False: Marketing mix is one of the steps involved in a strategic marketing plan

Answer- True

77. ________________ is a part of the yearly planning process for the marketing area and is also a
component of the overall business plan of the organisation.

Answer- Marketing plan

78. _______________________ is one of the tasks of the marketing plan, which helps in identifying
the favourable and unfavourable factors in the business environment and their impact on the business.

Answer- Analysis of business environment

79. Companies which use price based strategies use __________ as the competitive advantage.

Answer- Pricing

80. In a differentiation strategy, the company offers a __________________ to the buyers by way of
differentiation from competition.

Answer- Unique proposition

81. The various types of differentiation based strategies are ____________, ___________________
and ________________

Answer- Differentiation based on product, Differentiation based on distribution and

Differentiation based on promotion

82. The factors which affect an organisation’s environment can be of 2 types – ______________ and
__________________.
Answer- Controllable factors and uncontrollable factors

83. Preparing the marketing budget involves___________, _________, ___________ and

_______________.

Answer- Sales forecasting, budgeting, expenses and profit planning

84. State True or False: The examples of marketing information which can be used for control are
Information on marketing objectives and goals, Information on actual performance in the market and
Information on threats and opportunities.

Answer- True

85. Product refers to the physical entity offered by the company to its customers, which is a
combination of ________ and ________ qualities.

Answer- Tangible and intangible

86. State True or False: Consumer Goods are meant for final consumption by consumers and not for
sale.

Answer- True

87. The product may be intangible, in the form of _______.

Answer- Services

88. Product planning starts with the creation of product ____________.

Answer- Ideas

89. Which of the following is NOT the source of product ideas?

a) Research and development personnel b) Marketing personnel

c) Associated companies in other countries d) Accountants

Answer- d) Accountants

90. ________ is also known as dual package.

Answer- Re-use package

91. State True or False: After-sale services refer to various services rendered by a business firm to its
customer after the sale of goods is affected.

Answer- True

92. The practice of placing several units in one container is known as ________.

Answer- Multiple packaging

93. Which of the following is NOT the strategy of product mix?

a) Expansion of Product mix

b) Contraction of Product mix

c) Alteration of existing products

d) Pricing the product

Answer- d) Pricing

94. A major decision in product policy is related with managing of ____________________.

Answer- Product mix

95. In the ________ stage, the sales are at the peak and further increase is not possible.

Answer- Saturation

96. When ________ start declining, buyers go for newer and better product.

Answer- Sales

97. ________ is the first stage in the life of a product.

Answer- Introduction

98. The personality or image created for the company is called as its ________________.

Answer- Brand

99. ___________________ is the brand name of the company which has been registered under Trade
Marks Act.

Answer- Trade mark

100. The visual image of the brand consists of __________________, ________________ and
_____________________.

Answer- Colors, fonts and visual elements

101. A ____________ is the symbol of the brand represented as a picture

Answer- Logo

State True or False:

102. The brand name or logo should not be used generically or commonly, as this leads to the dilution
of the brand value.

Answer- True

103. The brand name and logo should be chosen so that it cannot be registered and protected legally.

Answer- False

104. In an _______________ brand type, there is no relationship between the brands of a company, as
each brand is promoted differently and independently.

Answer- Individual

105. ______________________ denotes the grouping of different products under a single brand.
Answer- Umbrella brand

106. The type of branding used for introducing new products in an existing line up, is called as
_________________________ (Choose the correct answer)

a. Individual brand

b. Umbrella brand

c. Private Label

d. Family brand

Answer- (d) Family brand

107. Branding helps the firm to establish ________________, as it aids in repeat sales and creates the
market for the product.

Answer- Market control

108. USP stands for ____________ and is an important advantage of branding (Choose the correct
answer)

a. Unique Selling Proposition

b. Unequal Selling Pitch

c. Unidentified Shuttle Position

d. Unmanned Space Probe

Answer- (a) Unique Selling Proposition

109. The cost of advertising and promotions can increase the retail price of products by _______ to
________%.

Answer- 20 to 25%

110. The concept that the brand must be positioned in a manner that it occupies a particular space in
the consumer’s mind continuously is called as __________________.

Answer- Renting mind space

111. According to Martin Roll, the three components of brand equity are ________________,
________________ and _________________.

Answer- Customer knowledge, customer preference and financial potential

112. _____________ can be defined as the intrinsic value of the brand, expressed in the value of
money that the customer is willing to pay for choosing the brand over its competition.

Answer- Brand equity

113. ________ is the amount of money paid or payable to acquire a product and its accompanying
services.
Answer- Price

114. The first step in determining the price of a new product is to estimate the ________ for the
product.

Answer- Demand

115. It may be noted that the market share of the product of the firm should not be fixed beyond the
________ capacity of the firm.

Answer- Production

116. Which of the following is NOT the objective of pricing?

a) R O I

b) Market share

c) Prevention of competition

d) Profiteering

Answer- d) Profiteering

117. State True or False: While fixing the price, the price of similar products, produced by other firms,
will have to be considered.

Answer- True

118. Expand ROI - _______________________________.

Answer- Return on Investment

119. The influencing factors for a price decision can be divided into to Internal Factors and
______________.

Answer- External factors

120. Which of these determines revenue?

a) Product b) Price c) Promotion d )Salesmanship

Answer- b) Price

121. In ________ period, the prices are reduced to a sizeable extent to maintain the level of turnover.

Answer- Recession

122. The price policy must be flexible, and not ________.

Answer- Rigid

123. The price policy must be framed after taking into account ___________.

Answer- Availability of raw materials

124. The price policy must assure reasonable margin to _________________.

Answer- Intermediaries

125. When a business enterprise adopts a price policy which is in accordance with the price policies
adopted by its competitors, the price policy is called_______________________.

Answer- Meeting competition pricing policy

126. In which pricing policy product is priced below the originally fixed price?

Answer- Mark down

127. When one firm in the industry assumes the role of a leader in determining the price, then it is
_____________________ pricing policy.

Answer- Leader pricing

128. ________ refers to the pathway, path or route taken by goods as they flow or move from the point
of production to the point of consumption or use.

Answer- Channel of distribution

129. Channels of distribution serve as a bridge between the ________ and the final ________ or
industrial users.

Answer- Producers ; Consumers

130. State True or False: The channels of distribution help to move the goods from one place to
another, and thereby, add place utility to the goods.

Answer- True

131. If ABC Ltd. is considered as financially strong, then it comes under ______________________
characteristics.

a) Economic b) Company c) Supply d) Marketing

Answer- b) Company

132. ________ goods must be placed in the hands of the consumers as quickly as possible, and so,
they require direct selling.

Answer- Perishable

133. When economic conditions are depressed, ______________ channels of distribution are
preferable.

Answer- Short

134. Under _________________, the manufacturer or producer sells his products directly to the final
consumer.

Answer- Direct selling

135. _____________________ is, generally, considered suitable for the marketing of perishable
commodities.
Answer- Direct selling

136. Under ____________________ method, the manufacturer or producer sells his goods to the final
consumers or industrial users, not directly by himself.

Answer- Indirect selling

137. A wholesaler links the manufacturers with the ___________________.

Answer- Retailers

138. What adds value of time and place utility in the supply chain?

Answer- Logistics

139. ________ is the function of informing, persuading and influencing the consumers to purchase the
product of the seller.

Answer- Promotion

140. Which of the following is NOT a component of promotion mix?

a) Advertising d) Sales promotion c) Personal selling d) Logistics

Answer- d) Logistics

141. Define promotion as given by William J. Stanton.

Answer- Promotion includes advertising, personal selling, sales promotion and other selling tools

142. Advertising is a paid form and hence ________________in nature.

Answer- Commercial

143. Advertising is the connecting link between the manufacturer and the ____________.

Answer- Consumer

144. ________________ reduces salesman’s jobs.

Answer- Advertising

145. ________ activities supplement the promotional efforts of advertising and salesmanship.

Answer- Sales promotion

146. Sales promotion leads to low unit cost, due to large-scale production and large-scale ________.

Answer- Selling

147. _________________________ involves face-to-face communication.

Answer- Personal selling

148. The traditional name for personal selling is ____________ _________.

Answer- Salesmanship
149. Under ________ the manufacturer or producer sells his products directly to the final consumers
or industrial users without the help of any middlemen.

Answer- Direct marketing

150. ________ marketing is common in the case of industrial marketing.

Answer- Direct

151. ________ refers to an effort to create a favourable attitude towards a firm among employees
shareholders, suppliers, customers, the government and the society at large.

Answer- Public relation

152. Publicity is an ________ communication.

Answer- Informal

153. If a company advertises its products on popular websites, is it online marketing? Yes/No.

Answer- Yes

154. _____________ provides space for the company to include not just the product information, but
also a whole lot of details that talk about the company’s existence.

Answer- Internet

155. Integrated marketing communication mix is the same as ________.

Answer- Integrated Promotion mix

156. _________________ is a broad statement of some desired end point.

Answer- Goal

157. ________ can be defined as the systematic design of size, color scheme, graphics, object and text
placement to send intended message to the target audience.

Answer- Advertisement Layout

158. ________ are letters or cards containing details of the products.

Answer- Folders

159. State True or False: Circulars carry uniform communication to a number of addresses containing
information about the products.

Answer- True

160. Consumer promotion methods refer to those sales promotion measures which are intended to
induce the ________to buy the product.

Answer- Customers

161. ________refer to all those sales promotion methods that are intended to induce the wholesalers
and retailers to stock the products in large quantities.
Answer- Dealer promotion methods

162. State True or False: Pull marketing is when the company uses its entire force – the sales team, the
marketing team, as well as the advertising teams to create brand awareness about their product.

Answer- False

163. ________ is the ability of a person to dominate others and leading them to action without forcing
them.

Answer- Tact or diplomacy

164. ____________ could include shareholders, government, consumers, employees and the media.

Answer- Public

165. Which of the following is NOT the type of key tools available to carryout the public relations
function ?

a) Media Relations

b) Media Tours

c) Newsletters

d) Posters

Answer- d) Posters

166. _______________ is an aggregation of individuals, who have the need for a product or service.

Answer- Market

167. The process of segregating the customers of a particular market into smaller segments, within
which customers have similar wants, needs or demands, is called as _______________________.

Answer- Market Segmentation

168. Choose the correct answer: A market is normally segmented on the basis of _____________

a. Product

b. Price

c. Consumer

d. Place

Answer- (c) Consumer

169. Choose the correct answer: Market segmentation helps the marketing manager to identify
________________ customer groups within the market.

a. Homogenous

b. Heterogeneous
c. Erogenous

d. Homologues

Answer- (a) Homogenous

170. Choose the correct answer: Market segmentation is based on the principle of
___________________.

a. Divide and unite

b. Rule and fight

c. Divide and rule

d. Right and Wrong

Answer- (c) Divide and rule

171. State True of False – Both, the size and potential of a particular market segment must be
substantial to justify the marketing efforts for such a segment.

Answer- True

172. A segment should exhibit responsiveness to the product and must also have adequate
____________________.

Answer- Buying power

173. State True or False – If the segment is not capable of being profitable, then the organization
should continue with the same.

Answer- False

174. Segmentation of the market on the basis of community, religion, language, race, age, size of
family, gender, occupation and income levels, is called as ________________ segmentation.

Answer- Demographic

175. State true or false:The buying behaviour of customers can be based on several elements such as
the usage, benefit or value, purchase volumes, event or occasion for the purchase, customers’ attitude
and brand loyalty.

Answer- True

176. Lifestyle segmentation of a market is a part of ____________ ____________________ type of

segmentation.

Answer- Psychographic

State True or False:

177. Correct segmentation of market provides an edge for the organisation over competition.

Answer- True
178. Effective segmentation strategy enhances the costs for the organisation.

Answer- False

179. Segmentation decreases the customer loyalty as customers find products more suited for their
tastes.

Answer- False

180. Segmentation enhances the business opportunities of the organisation, as cost reduces and market
share increases.

Answer- True

181. The study of consumer behaviour is associated with the analysis of the customer’s
_________________ decisions.

Answer- Buying

182. _________________ buys a product or service for personal use only.

Answer- Consumer

183. __________________ is a person who can choose between products and services.

Answer- Customer

184. _______________ takes up ownership of a product or service for consideration.

Answer- Buyer

185. The school of marketing thought, which was heavily influenced by social sciences, was
______________________.

Answer- Classical school

186. Choose the correct answer: The school of marketing thought which states that the organization
has to adjust to its environment is called as ________________________.

a. Behavioural school

b. Classical school

c. Managerial school

d. Adaptive school

Answer- (d) Adaptive school

187. The personal factors which influence an individual customer are

___________________________ and __________________________.

Answer- Consumer demographics and consumer psychographics

188. Mention the three psychological factors which affect buyer behaviour.

Answer- Perception, learning, memory and motivation

189. The person who first suggests or thinks of the idea of buying a particular product or service, is
called as an __________________.

Answer- Initiator

190. The type of purchasing decision in which the purchaser buys the product for occasional use is
called as ______________________.

Answer- Limited decision making

191. The type of purchasing decision involved in buying milk and bread is called as
___________________.

Answer- Routine response / Programmed behaviour

192. The stage of the buying process in which the buyer searches for information is called as
_________________________.

Answer- Awareness

193. The stage at which the customer buys a small sample in order to test the effectiveness of the
product, is called as _____________.

Answer- Trial

194. The stage in the buying process, which is also called as the stage of purchase decision, is known
as _________________.

Answer- Adoption

195. The marketing of a product or service is based on the ______________________of that product
or service in the mind of the consumer.

Answer- Perceived value

196. __________________ can be defined as the creation and delivery of value for the satisfaction of
the customer, which provides a profit to the seller or service provider.

Answer- Services marketing

197. Services such as laundry, cleaning and day care have increased in demand due to
_____________________________.

Answer- Increase of women in the work place

198. In India, services sector contributes to _______________ of GDP.

Answer- 53%

199. One of the characteristics of service, _________________, is also termed as immediacy.

Answer- Inseparability

200. For a service, there can be no _________________ of ownership.

Answer- Transfer
201. State True or False: The pricing of services is variable due to the changes in demand and costs of
the service.

Answer- True

202. State True or False: Goods are heterogeneous whereas services are characterised by homogeneity.

Answer- False

203. State True or False: Goods can be stocked in warehouses when the supply is in excess but
services cannot be stocked in any place and needs to be utilised immediately.

Answer- True

204. For a customer, the _________________ and the service are inseparable.

Answer- People

205. __________________ helps customers to make judgements based on their perception of

surroundings.

Answer- Physical evidence

206. The step-by-step arrangement or the systems which are used by the organization to provide
service to the customers, is called as _____________________.

Answer- Process

207. Multiplexes and amusement parks are both types of _____________________ service.

Answer- Entertainment

208. The preparation of the brand promotion campaign of a company is a type of _____________
service.

Answer- Advertising

209. Credit cards issued on the basis of classic or silver, gold, titanium and platinum levels, are an
example of _____________________ strategy of services marketing.

Answer- Membership relation or reward

210. Your local hairdresser remembering your name when you visit for a haircut is a type of
____________ strategy of services marketing.

Answer- Social relationship