TERM END EXAMINATION: DESCRIPTIVE ANSWER SCRIPT

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Seat No. 118616 Batch 2020-2021
Semester 3rd Programme MBA – International Business
Specialization Marketing Exam date 13th Nov 2021
(if any)
Exam Paper Marketing Models

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 *** START TYPING YOUR ANSWERS FROM THIS PAGE ONWARDS ***
Answer 2:
There are many things that affect consumer behaviour and some of them are listed below, proper
study of the below mentioned factors can help us in predicting the customer behavior and
measuring the market performance.

 Previous experience of a customer- Previous experience determines a lot.

 Previous purchases
 Social characteristics
 Lifestyle
 Culture
 Education
 Occupation
 Beliefs

Experience Management is used now a days not only to understand customer behavior, but also to
predict it and remove problems before it occur.

 Boost retention-Customer retention software aids in the measurement and comprehension

of the customer's journey and experiences, both relational and transactional in nature, such
as purchase or post-support follow-up.
 Higher level of Customer satisfaction-It is critical to know and comprehend whether or not
your clients are satisfied with your brand.

Examples as to how above mentioned points can be used to determine customer behavior are
mentioned below:
 Demographic factors: which includes, age, gender, educational level, marital status, annual
income, family size, Occupation, number of children and it plays a greater role in purchase
decision of children toys and it have been proved through various analysis and discussion
held over a period of time .
 Need Recognition is also having critical role, then the second most important factor is toy
decision and third important factor is ‘influential factors’.
 The demographic profile (i.e. age group, marital status, educational qualification, annual
income, number of children) of the purchaser is also having significant influence on
perception towards the factors of buying behaviour of Children toys in organized stores.

Answer 4:

 The purpose of operations research is to uncover the most cost-effective methods for
increasing sales or profits while minimising losses and risks.
 Operations Research use scientific methods to handle complex business problems.
Financial services, electronic marketplaces, network infrastructure, bundled OR-software
tools, supply-chain management, and travel-related services are just a few of the areas

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 where it is used. As a result of which outstanding outcomes have been achieved. Because it
is well matched to the needs of the digital economy in some ways and because certain
enabling conditions are approaching, OR has a good chance of collaborating with related
analytic technologies and joining information technology as a vital engine of further
development for the digital economy.

 The main goal is to create a mathematical model that can be used to simulate real-world
processes and systems in order to come up with the best potential solutions. Computer
science tools and software development expertise are usually required for successful
operations research projects.

 It helps in retail site selection and its optimization-It will help in optimization of Retail Site
Selection eg which markets offer the biggest potential for new retail outlets? What are the
most promising areas for new retail enterprises in a city? Consumers' attitudes toward a
brand can influence their product evaluations as well as their willingness to share online
advertisements with others. The lack of a live setting on Instagram is a stumbling point.
When users share information,

Answer 5:

1.) RFM analysis is a great method for identifying top customers, understanding their behaviour,
and then delivering them individualised email / marketing campaigns to increase sales,
satisfaction, and customer lifetime value.

Reasons why it is important and useful to use RFM for E-Retailing such as Flippkart and Amazon
store are listed below:
 Today we are living in customer-driven economy and gaining adequate customer insights is
essential for us now a days to maximize profit. Only then will any improvements in user
experience lead to the development of long-term customer-company connections.
 The identification of consumer segments serves as the foundation for a successful strategy
for predicting and targeting potential customers. Furthermore, analysing customer
behaviour is critical in determining the lifetime value of customers.
Recency, Frequency, and Monetary Value are abbreviated as RFM. Recency (R) refers to the
amount of days or months since a consumer made their last transaction. The number of purchases
made in a given time period is referred to as frequency (F). While Monetary Value (M) is the total
amount of money spent by a customer over a period of time.
RFM analysis works upon the marketing axiom (The Pareto Principle) (80:20 Rule) that is 80% of
a company’s business comes from 20% of its customers.

2.) MBA ( Market Basket Analysis) with respect to outlets of a beauty care products.

When performing a market basket study on a beauty care products outlets, one can utilise the
results to evaluate cross-selling opportunities and even store layout. Customers who are looking
for a beauty cream may also be looking for a cosmetics or lipsticks etc. Customers who buy face
pack may also desire to sponge to remove the face pack. Market Basket analysis will assist the
organisation of the business, including webstores, in order to increase income. Items that
complement each other should be displayed together to make it easier for customers to notice

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them. We may also estimate future purchases of clients based on MBA inputs over a period of
time. We can forecast sales based on your original sales data.

Additionally, there are two types of market basket analysis:

Predictive market basket analysis and Differential market basket analysis(it considers data across
different stores)

Answer 6:
Q During the present pandemic, the uncertainty, chaos and volatility have increased drastically.
How do you design STP (Segmentation, Targeting and Positioning) for the garment industries?
Display the applications of various statistical and mathematical tools of multivariate analysis to
design your plan.

A. Firstly we need to understand what STP is:

Segmentation: It divides the market into distinct group of customers using various segmentation
practices.

Targeting:This is to determine which customer segment to focus on for our product or service.

Positioning: This is to create product positiong and marketing mix that will appeal the most to our
selected audience.

Steps to design STP (Segmentation, Targeting and Positioning) for the garment industries are listed
below:

1. We will define our market- As the global market is far too big and that is why we need to
divide it into smaller chunks. Typically, to evaluate our business opportunity, we will need
to define our Total Available Market, Serviceable Available Market, and Serviceable
Obtainable Market.

2. Then we will create audience segments: the following are the four primary types of
audience segmentation:

Geographic segmentation (location, such as country, region, state, or

province.),Demographic segmentation(age, gender, education level, occupation, and
gender),Behavioral segmentation (depending on how they engage with your company:
what they buy, how often they buy, what they browse, and so on.),Psychographic
segmentation( Lifestyle, interests, activities, viewpoints, and so on).

3. Third step is to create segment profiles- Describe the needs, behaviors, demographics,
brand preferences, shopping traits, and any other characteristics.

4. Then we will be evaluating the attractiveness of each segments that we have decided

5. Then we will select the target audience- The best way to determine the most viable
segment is by performing cluster analysis. Our ideal audience segment is one that is both
large and still growing. 

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 6. Define the positioning strategy- Various typed of ways or strategy of positioning are
category-based positioning,Consumer-based positioning,Competitor-based
positioning ,Benefit-based positioning Price-based positioning,Attribute-based
positioning,Prestige-based positioning .

7. And in the end will choose our marketing mix -A marketing mix consists of 4 Ps:
Product, Price, Place, and Promotion.

The applications of various statistical and mathematical tools of multivariate analysis to design my
plan –

There are various areas in market research that can be benefited from multivariate analysis. We
can do the consumer segmentation, new product development, better product placement, new
product introduction etc.
We can use various tools such as R, SPSS, Excel to do the below mentioned analysis-
 Multiple Regression Analysis.
 Discriminant Analysis.
 Multivariate Analysis of Variance
 Factor Analysis.
 Cluster Analysis.
 Canonical Correlation.

The main advantage of multivariate analysis is that the conclusions drawn are more
accurate since it includes more than one factor of independent variables that influence the
variability of dependent variables.Hence we can say that the conclusions drawn are more
realistic and closer to the scenario in real life.

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