B.Com 5th Sem: Principles of Marketing Solved Papers' 2018 | Dibrugarh University

2018 (November)
COMMERCE (General)
Course: 504 (Principles of Marketing)
The figures in the margin indicate full marks for the questions
(NEW COURSE)
Full Marks: 80
Pass Marks: 24
Time: 3 hours


1. (a) Write True or False:                                            1x4=4
1)         Leader’s opinion does not influence consumer’s behaviour.              False
2)         Selling is a part of marketing.                            True
3)         The scope of marketing and selling are same.                           False
4)         Test marketing is the part of new product development process.                   True
(b) Fill in the blanks:                                              1x4=4
1)         Marketing begins and ends with the consumers.
2)         Packaging facilitates product identification.
3)         Market survey and market research are different.
4)         Label helps in avoiding the consumer’s confusion.
2. Write short notes on (any four):                          4x4=16
a) Production positioning: Product positioning is an important element of marketing plan. It is the process presenting the benefits of the products to the target audience. In other words, Product positioning is a process of identifying the needs of market segments, product strength and weaknesses and the extent to which competing product are perceived to meet the consumer needs. It is an attempt to project different or refined or revised product image in the market than one that has been prevailing. It is the delicate task of relating a product to the market or a market segment. It is that method which emphasizes the product that proves attractive to the consumers. For instance, a two-wheeler manufacturer might engineer the product to be safer, more accommodative, more fuel-efficient than those of competitors.
According to Professor Philip Kotler, “Positioning is the act of designing the company’s image and value offer so that the segment’s customers understand and appreciate what the company stands for in relation to its competitors. “
b) Test marketing: Test marketing is the stage where the entire product and marketing programme is tried out for the first time in a small number of well chosen and authentic sales environments. Test marketing is normally the last step in the development process before a new product is launched either on regional or on national level. Test marketing or market testing is simply means of minimizing the risk of national or regional launch. It confirms the management’s expectations about the product by testing those variables in the marketing planning or plan other than the product. Of course, product modifications might be recommended as a result of test marketing effort; but this is not the principal reason as to why market testing is undertaken.
Market testing is a managerial control tool because; a market test can serve as a pilot operation for the large-scale marketing activity. This is particularly true for marketing new products and new brands. Further, test marketing is a predictive research tool because, it is employed in two, broad and dissimilar situations namely:
1)         The introduction of new product or brand and
2)         The evaluation of alternative marketing variables.
c) Product mix: Product is one of important part of marketing mix because it reflects the good or bad reputation of any organization.  The products represent any business efficiently.  Successful organizations always search out the buying habits of their customers and designed their products based on those buying habits in order to meet the customer’s requirements. They also design their products based on important factors such as purchasing power and geographical locations etc.  They try to design products which are affordable for customers.  Companies always design their products according to customer’s budget and affordability.
They do not compromise on their product quality.  Some companies maintain their quality and do not compromise on price but there are some companies which produce products according to the affordability of customers. Marketers communicate with their customers directly and convince them to buy their products.
d) Physical distribution: Physical distribution is the process of making the movement of the product to the consumers. It encompasses all the activities involved in the physical flow of products from producers to consumers. Physical distribution makes the product available at the right place and at the right time, thereby maximizing the company’s chance to sell the product and strengthen its competitive position. The products have to be carried to places of consumption; they have to be stored; and they have to be distributed. The product has to be marketed over an extensive marketing territory. It has to be transported through long distances, stored for a considerable length of time before being consumed. Physical distribution largely determines the customer service level. Inefficient physical distribution leads to loss of customers and markets. There are some products which are subject to the seasonality factor - either production is continuous but demand is seasonal, or demand is continuous but production is seasonal. In all such cases, physical distribution acquires additional importance.
e) Sales forecasting: Sales forecasting is an estimate of sales in both monetary as well as in physical terms. A sales forecast is an estimate of sales volume that a company can expect to attain within a specified future period with the marketing efforts. A sales forecast is not a prediction but it shows the probable volume of sales. Sales forecast is affected by many factors such as economic condition of the market, consumer’s perception, industrial behaviours etc. sales forecast is very important for a firm because demand and supply for the products can be easily adjusted with the help of sales forecast. It is a forward planning and all other requirements of raw materials, labour, plant layout, financial needs, warehousing and transport facility can be arranged on the basis of future estimated sales.
3. (a) Explain the importance and significance of marketing towards the society.             7+7=14
Ans: Importance and Uses of Marketing (Role of Marketing)
Marketing is a unique function of business which satisfies social values, needs and wants of an individual. It serves as the springboard for all industrial production. The importance of marketing can be studied under the following heads:
A. Uses to the Society
(1)   Employment of Various Persons: Since the things are manufactured or produced due to marketing, hence many people get employment through the production activities. Transport, storage and wholesale and retail services cover many persons. In this way, it might be said that by marketing the employment is created.
(2)  Availability of Various Products for Use: Today, the sphere of marketing has become worldwide or international. Due to it, the products manufactured in the foreign lands too become avail­able for consumption. All this could become possible due to the growth of the marketing and its development.
(3)  Increase in the National Income of Country: If the marketing activities are efficiently undertaken and things are produced in accordance with the needs or requirements of the cus­tomers, there must be some increase in the demand of the things. The production goes up which leads to the increase in the national income.
(4)  Protecting the Economy against the Evil Effects of Depressions: If the produced goods are not sold, there shall be piled up the unsold materials with the producers and they will fall victim to the depression effects. Thus the marketing keeps the economy safeguarded against the evil effects of the depressions.
(5)  Increase in the Standard of Living: By an efficient sys­tem of marketing, there is a fall in the prices of the products which ultimately leads to the enhancement in the consumption capacity of the society which ultimately brings reforms and improvement in the standard of living of the society.
B. Uses to the Producers
(1)   Helpful in Earning More Profits: Whenever any manu­facturer produces some commodity, he has to seek the help of so many people in letting the same reach the hands of the consumers. For instance, there is the need of the middlemen, the godown ­owners, the traders, the owners of transport companies, etc. By establishing proper distribution channel, more profits can be earned.
(2)  Getting Information Regarding Demand. By the study of marketing, the producers are able to get information regard­ing the changing demands.
(3)  Reduction in Distribution Costs. By the wide studies of distribution, it is also known that the products be passed on to the consumers on the minimum possible costs.
(4)  Helpful in Production Planning. The producer, by studying the marketing, could plan his various policies pertaining to production.
C. Uses to the Consumers
While purchasing the products, the consumers must have full knowledge of the things. This can be possible only through marketing. By the study of marketing, the consumer is able to acquire knowledge as to how the middlemen resort to their exploitation. For avoiding the middlemen's exploitation, the con­sumer co-operative societies are being promoted and developed.
D. Uses to the Middlemen
By the 'middlemen' is meant those persons who send the products from the producer to the consumer. The lower are the ex­penses of the middlemen, the greater is their profit. By studying the marketing, they get the knowledge as to how the expenses of dis­tribution be kept lower. Unless the middlemen possess sufficient knowledge of marketing, they can't become successful.
E. Uses to the Nation
With the help of marketing, in the progressive and developing countries too, good managers and entrepreneurs can be encou­raged. For resorting to the most efficient use of the resources avail­able in the country, marketing of the commodities is very necessary. By the study of marketing, the economy could be kept safeguarded against the evil effects of instability. Only due to the marketing, the processes of production and distribution continue to exist. In it the condition of full employment could be achieved. Really speaking, marketing occupies an important role in the economic development.
Or
(b) Discuss about ‘growth and future’ of marketing in India.                                       7+7=14
4. (a) What is market segmentation? State the objectives of market segmentation.                       4+10=14
Ans: Ans: Marketing Segmentation: A market consists of large number of individual customers who differ in terms of their needs, preferences and buying capacity. Therefore, it becomes necessary to divide the total market into different segments or homogeneous customer groups. Such division is called market segmentation. They may have uniformity in employment patterns, educational qualifications, economic status, preferences, etc. Market segmentation enables the entrepreneur to match his marketing efforts to the requirements of the target market. Instead of wasting his efforts in trying to sell to all types of customers, a small scale unit can focus its efforts on the segment most appropriate to its market. It is defined as “The strategy of dividing the market in order to consume them”.
According to Philip Kotler, “It is the subdividing of market into homogenous subsets of consumers where any subset may be selected as a market target to be reached with distinct Marketing Mix”
According to Philip Kotler, market segmentation means "the act of dividing a market into distinct groups of buyers who might require separate products and/or marketing mixes."
According to William J. Stanton, "Market segmentation in the process of dividing the total heterogeneous market for a good or service into several segments. Each of which tends to be homogeneous in all significant aspects."
Basis of Segmentation:
Market segmentation dividing the Hetrogenous market into homogenous sub-units. Heterogeneous means mass marketing, which refers people as a people. Homogeneous means dividing the market into different sub units according to the tastes and preferences of consumers. The following factors are considered before dividing the market:
1.       Geographical Factors: On the basis of geographical factors, market may be classified as state-wise, region-wise and  nation-wise. Many companies operate only in a particular area because people behave differently in different areas due to various reasons such as climate, culture, etc.
2.       Demographic Factors: This is the most widely used basis for market segmentation. Market is classified on the basis of population, using ages, income, sex, etc as indicators.
a)      Age                : It is known fact that people of different ages like different products, need different things, and  behave differently. Almost all companies use this factor to reach the target market. On the basis of age, market in our country is divided into children’s market, teenager’s market, adult’s market, and  the market for old people. Companies use the census data to prepare marketing strategies on the basis of age.
b)      Sex: There is a variation of consumption behavior between males and  females. This factor is used as a basis for segmentation for products like watches, clothes, cosmetics, leather goods, magazines, motor vehicle, etc.
c)       Family Life Cycle: This is another important factor, which influences the consumer’s behavior. E.g.: Before making purchases, a bachelor may consult his friends, a boy may ask his parents and  a married man asks his wife. The study of family life cycle helps a company to prepare an effective promotional strategy.
3.       Psychological factors: In psychographic segmentation, elements like personality traits, attitude lifestyle and  value system form the base. The strict norms that consumers follow with respect to good habits or dress codes are representative examples. E.g.: Mr. Donald’s changed their menu in India to adopt to consumer preference. The market for Wrist Watches provides example of segmentation. Titan watches have a wide range of sub brands such as Raga, fast track, edge etc. or instant noodle markers, fast to cook food brands such as Maggi, Top Ramen or Femina, women’s magazine is targeted for modern women.
4.       Economic Factors: On the basis of economic factors, markets have been classified in the westerns countries as follows:
a. Upper Class                   b. Upper-upper class                      c. Lower-upper class
d. Middle class                  e. Upper-middle class                    f. Lower-middle class
g. Lower class                    h. Upper-lower class                      i. Lower-lower class
In our country, it is classified as upper class (rich), middle class, and  the lower class. Another classification based on income in our country is as follows:
a. Very Rich                        b. The Rich class                c. The Aspiration Class and
d. The Destitute.
5.       Behavior Factors: This is one of the most important bases used for market segmentation. Market is classified on the basis of attitude of consumers and special occasions.
a)      Occasions: Sellers can easily find out certain occasions when people buy a particular product. E.g.: Demand for clothes, greeting cards, etc increases during the festival season. Demand for transportation, hotels etc increases during the holiday seasons.
b)      Benefits: Each consumer expects to fulfill certain desire or to derive some benefits from the product he purchases. E.g.: A person may purchase clothes to save money and  another to impress others. Based upon this, markets may be classified as markets for cheap price products and  market for quality products etc.
c)       Attitude: On the basis of attitude of consumers, markets may be classified as enthusiastic market, indifferent market, positive market, and  negative market.
Objectives of Market Segmentation
a)      To identify the need, taste and buying motive of the target consumers
b)      Grouping of customers on the basis of their common characteristics such as behaviour, income, age, geography etc.
c)       To introduce product according to the needs of the consumers.
d)      To make Consumer oriented approach for the firm
e)      To introduce suitable marketing mix.
f)       To define marketing strategies, targets and goals of the firm.
Or
(b) What is consumer behaviour? Discuss the sociological factors affecting the consumer behaviour.    4+10=14
Ans: Consumer Behaviour: Behaviour is a mirror in which everyone shows his or her image. Behaviour is the process of responding to a thing or event. Consumer behavior is to do with the activities of individual in obtaining and using the good and services. The term consumer behaviour is defined as the behaviour that consumer display in searching for, purchasing using, evaluating and disposing of products and services that they expect will satisfy their needs.
In the words of Kotler, ”Consumer   behaviour   is   the   study   of   how   people   buy,   what they buy, when they buy and why they buy.”
In the words of Solomon,” Consumer behaviour is the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires”
In the words of Professor Bearden and Associates, ”Consumer behaviour is the mental and emotional process and the physical activities of people who purchase and use goods and services to satisfy needs and wants.”
Factors that influence  consumer behaviour
The buyer has a selective perception and  is exposed to a variety of products and  information. He may ignore certain piece of information whereas actually seek out some other information whereas actively seek out some other information Therefore, marketers must fully understand both the theory and  reality of consumer behaviour. A consumer’s buying behaviour is influenced by cultural, social and  personal factors and  they are a part of the buyer as an individual.
(1) Cultural Factors : Culture is the fundamental determination of a person’s wants and  behaviour. The growing child acquires a set of values perceptions, Preferences and  Behaviours through his or her family. Each culture consists of various subcultures that provide more specific identification. It includes nationalities, religions, social groups and  geographic regions.
Every culture dictates its own unique patterns of social conduct. Within each religion there may be several sects and  sub sects, there may be orthodox group and  cosmopolitan groups. The do’s and  don’ts listed out by religion and  culture impacts the individual’s lifestyle and  buying behaviour.
(2) Social Factors: Consumer’s behaviour is influenced by social factors such as reference groups, family, social roles and  status. The buyer is living in a society, is influenced and  There is a constant interaction between the individual and  the groups to which he belongs. All these interactions affect him in his day to day life.
a. Reference Groups: A person’s reference groups consist of all the groups that have a direct or indirect influence on his attitude. They can be family friends, neighbours, co-worker, religious, professional and  trade union groups. Reference groups expose an individual to new behaviours and  lifestyles and  influence attitude and  self concept. Brands like Levi, Prologue and  Planet M used teenage icon as brand Ambassadors for in store promotions.
b. Family: The family is the most important buying organization in society. From parents a person acquires an orientation toward religion politics and  a sense of personal ambition, self worth and  love. E.g. In traditional joint families, the influence of grandparents on major purchase decisions affect the lifestyles of younger generations. In urban India with the growth of nuclear families and  both husband and wife working the role of women in major family decisions is prominent. Children and  teenagers are being targeted by companies using the internet as an interactive device.
c. Role and  Status: The person’s position in each group can be defined in terms of role and  status. A role consist of all activities that a person is expected to perform. Each role carries a status. A Vice President of marketing has more status than a sales manager and  a sales manager has more status than an office clerk and  people choose those products that reflect and  communicate their role and  desired status in society.
(3) Personal Factors: The personal factors include the buyer’s age and  stage in the life cycle, occupation and  economic position, personality and  self concept and  lifestyle and  values.
a. Age and  Stage in the Life Cycle: People buy different products like food, cloths furniture and  this is often age related. Trends like delayed marriages, children migrating to distant cities, tendency of professionals has resulted in different opportunities for marketers at different stages in consumer life cycle.
b. Occupation and  Economic Position: Occupation also influences buyer’s behaviour. A blue collar worker will buy work clothes, work shoes and  lunch boxes; a company president will buy dress suits, air travel and  club memberships. Marketers try to identify the occupational groups and  then make products according to their needs and  demands. Product choice is greatly affected by economic circumstances – spendable income, savings and  assets and  attitude towards spending and  savings.
c. Personality and  Self Concept: Each person has personality characteristics that influence his / her buying behaviour. Personality means a set of distinguishing psychological traits that has to response to environmental stimuli. Personality can be a useful variable in analyzing consumer brand choice. The idea is that brands also have personalities and  consumers like to choose those brands which suits or match their personality.
5. (a) What do you mean by packaging? Discuss the various importance and functions of packaging.      4+10=14
Ans: Price and Pricing
Price is defined as the amount we pay for goods or a service or an idea. Price is the only element in the marketing mix of a firm that generates revenue. All other elements generates only cost. Price is a matter of importance to both seller and  buyer in the market place. Only when a buyer and  a seller agree on price, we can have exchange of goods and services leading to transfer of ownership.
The term ― Price need not be confused with the term ― Pricing. Price is the value that is put to a product or service and is the result of a complex set of calculations, research and understanding and risk taking ability. But pricing is different from price. It refers to decisions related to fixing of price of a commodity. A pricing strategy takes into account segments, ability to pay, market conditions, competitor actions, trade margins and input costs, amongst others. It is targeted at the defined customers and against competitors. 
Objectives and Importance of Pricing (Role):
Objectives of Pricing:
A business firm will have a number of objectives in the area of pricing. These objectives can be short term or long term or primary objectives:-
(i) Profit maximization in the short term.
(ii) Profit optimization in the long term.
(iii) A minimum return on investment
(iv) A minimum return on sales turnover.
(v) Achieving a particular sales volume.
(vi) Achieving a particular market share.
(vii) Deeper penetration of the market.
(viii) Entering new markets.
(ix) Target project on the entire product line.
(x) Keeping competition out, or keeping it under check.
(xi) Keeping parity with competition.
(xii) Fast turnaround and  early cash recovery.
(xiii) Stabilizing price and  margins in the market.
(xiv) Providing the commodities at prices affordable by weaker section.
(xv) Providing the commodities at prices that will stimulate economic development.
Importance of Pricing:
Importance of pricing is spelled out by the following points.
1. Price is the pivot for an economy: Price is the prime mover of the wheels of the economy namely, production, consumption, distribution and  exchange price influences consumer purchase decision. It reflects purchasing power of currency. It can determine the general living standards of people. In essence, by and large every facet of our economy life is directly or indirectly governed by pricing.
2. Price Regulates Demand: Price increase or decrease the demand for the product de- marketing strategy can be easily implemented to meet the rising demand for goods and  service.
3. Price is the competitive weapon: The marketers have to perform in a highly competitive environment. Price is a very important instrument to fight competition. It is the competition that contributes maximum to the importance of pricing. Pricing is a highly dynamic function. Because of the immense competition and in meeting competition, pricing decisions acquire their real importance.
4. Price is the Determinants of profitability: Price determines the profitability of firm by influencing the sales revenue. Low price is not always necessary to increase profit. A right price can increase the sales volume and there by profit. The impact of price rise of fall is reflected instantly in the rise or fall of the product profitability.
5. Price is a Decision Input: Pricing is highly risky decision area and  mistakes in pricing might reasonably affect the firm, its profits, growth and future.
Or
(b) What is trademark? Distinguish between trademark and branding.                                                                 4+10=14
Ans: Trade Mark
In General, a trade mark is defined as any sign, as any combination of sign, inherently capable of distinguish the goods or service of one undertaking. Trade marks may be a combination of words, letters, and numerals. They may consist of drawings, symbols, colours used as distinguish features. The owner of the mark may not be involved in the relevant trade and acts purely as a certification authority. The internationally accepted ―ISO 9000 quantity standards are examples of such widely recognized certifications.
Brand Name
A brand is define as a name, term, sign, symbol or special design or some combinations of these elements that is intended to identify the goods or services of one seller or a group of sellers. A brand differentiates these products from those of competitors. A brand in short is an identifier of the seller or the maker. A brand name consists of words, letters and / or numbers that can be vocalized. A brand mark is the visual representation of the brand like a symbol, design, distinctive colouring or lettering.
In the opinion of American Marketing Association, Brand is a name, position, symbol or design or their combination by which the products and services of a seller or different sellers are recognized and are differentiated from the products and services of competition.
In the views of Lapland, The 'brand' can be defined as any indication, symbol, letter or letters which indicate the origin or the ownership of any product and differentiate the product from its variety, and don't grant the same right to others for using them for the similar object.
Distinction between Brand and Trade-Mark
The following are the distinctions between the brand and trade-mark:
a)      Registration. Brand is merely a word, symbol or a design. If it is got registered under law, it becomes a trade-mark. But the brand is not required to be legally registered.
b)      Action against Imitating. If the brand has been copied out by some other concern competing the business, no legal proceed­ings against it could be undertaken for the same. As against it, if someone imitates the `trade-mark', the body might be legally sued for.
c)       Scope. The scope for brand is limited while the trade­mark is quite extensive in its sphere.
d)      Use or Utilization. When the brand has been got regis­tered, it becomes the trade-mark and its use could be permissible to the same body or undertaking only. Against it, one and the same brand might be used by various manufacturers, producers or sellers.
e)      All the Brands are not the Trade-Marks. All the trade-marks have to be brands, but all the brands are not the trade-marks.
6. (a) What is promotion? Explain the various importance of promotion.             4+10=14
Ans: Promotion is an important part of marketing mix of a business enterprise. Once a product is developed, its price is determined the next problem comes to its sale i.e., creating demand for the product. It requires promotional activities. The activities are technique which bring the special characteristics of the product and of the producer to the knowledge of prospective customers. Promotion is a process of communication involving information, persuasion, and influence. The term ‘selling’ is often used synonymously with promotion. But promotion is wider that selling. Selling is concerned only with the transfer of title in goods to the purchaser, whereas promotion includes techniques stimulating demand. These techniques include advertising, salesmanship or personal selling and other methods of stimulation demand.
Role of Promotion mix:
a) To provide Information to the consumers: Informative promotion can convert an existing need into a want or to stimulate interest in a new product. People generally do not buy a product or service unless and until they know its purpose and its benefits to them. Informative messages are significant in promoting complex and technical products like automobiles, computers and investment services. It is also important for a “new” brand being introduced into an “old” product class. In a nutshell, informative promotion helps in Increasing the awareness of a new brand, product class, or product attribute.
b) To persuade consumers to purchase: Persuasive promotion is designed to stimulate to purchase or an action. Persuasion generally becomes the main promotion goals when the product enters the growth stage of its life-cycle. The persuasive promotion aims at:
(1) Encouraging brand switching;
(2) Changing customers’ perception of product attributes;
(3) Influencing customers to buy now and
(4) Persuading customers to call.
c) To remind about the existing brand: Reminder promotion is used to keep the product and brand name in the audience’s mind. Reminder promotion is very active during the maturity stage of product life-cycle. It assumes that the target market has already been persuaded of the good’s or service’s merits. Reminder promotion aims at:
(1) Reminding consumers that the product may be needed in the near future;
(2) Reminding the consumers where to buy the product and
(3) Maintaining consumer awareness.
Or
(b) Discuss the environmental factors affecting the selection of channel of distribution.                             14
Ans: Factors Affecting the Selection of the Channel of Distribution
Every producer, in order to pass on the product to the consumer, is required to select a channel for distribution. The selection of the suitable channel of distribution is one of the important factors of the distribution decisions. The following factors affect the selection of the channel of distribution:
A. Factors Pertaining to the Product: Keeping in view the nature, qualities and peculiarities of the product, could only the channel for distribution be properly made. The following factors concerning the product, affect the selection of the channel of distribution:
(1)   Price of the Product: The products of a lower price have a long chain of distributors. As against it, the products having higher price have a smaller chain. Very often, the producer himself has to sell the products to the consumers directly.
(2)   Perishability: The products which are of a perishable nature need lesser number of the intermediaries or agents for their sale. Under this very rule, most of the eatables (food items), and the bakery items are distributed only by the retail sellers.
(3)   Size and Weight: The size and weight of the products too affect the selection of the middlemen. Generally, heavy industrial goods are distributed by the producers themselves to the industrial consumers.
(4)   Technical Nature: Some products are of the nature that prior to their selling, the consumer is required to be given proper instructions with regard to its consumption. In such a case less of the middlemen arc) required to be used.
(5)   Goods Made to Order: The products that are manufactured as per the orders of the customers could be sold directly and the standardized items could be sold off only by the middlemen.
(6)   After-Sales Service: The products regarding which the after-sales service is to be provided could be sold off either personally or through the authorized agents.
B. Factors pertaining to the Consumer or Market: The following are the main elements concerned with the consumer or the market:
(1)   Number of Customers: If the number of customers is large, definitely the services of the middlemen will have to be sought for. As against it, the products whose customers are less in number are distributed by the manufacturer himself.
(2)   Expansion of the Consumers: The span over which are the customers of any commodity spread over, also affects the selection of the channel of distribution. When the consumers are spread through a small or limited sphere, the product is distributed by the producer himself or his agent. As against it, the goods whose distributors are spread throughout the whole country, for such distributors, services of wholesalers and the retailer are sought.
(3)   Size of the Order: When bulk supply orders are received from the consumers, the producer himself takes up the responsibility for the supply of these goods. If the orders are received piece-meal or in smaller quantities, for it the services of the wholesalers could be sought. In this way, the size of the order also influences the selection of the channel of the distribution.
(4)   Objective of Purchase: If the product is being purchased for the industrial use; its direct sale is proper or justified. As against it, if the products are being purchased for the general consumption, the products reach the consumers after passing innumerable hands.
(5)   Need of the Credit Facilities: If, for the sale of any product, it becomes necessary to grant credit to any customer, it shall be helpful for the producer that for its distribution, the services of the wholesalers and retailer businessmen be sought. In this way, the need of the credit facilities too influences the selection of the channel of distribution.
C. Factors Pertaining to the Middlemen: The following are the main factors concerned with the middlemen:
(1)   Services Provided by Middlemen: The selection of the middlemen is made keeping in view their services. If some product is quite new and there is the need of its publicity and promotion of sales, then instead of adopting the agency system, the work must be entrusted to the representatives.
(2)   Scope or Possibilities of Quantity of Sales: The same channel should be selected by means of which there is the possibility of more sales.
(3)   Attitude of Agents towards the Producers' Policies: The producers generally prefer to select such middlemen who go by their policies. Very often when the distribution and supply policies of the producers being disliked by the middlemen, the selection of middlemen becomes quite limited.
(4)   Cost of Channel of Distribution: While selecting the channel of distribution, the cost of distribution and the services provided by the middlemen or agents too must be kept into consideration. The producers generally select the most economical channel.
D. Factors Pertaining to the Producer Or Company: The following factors, concerning the producer, affect the selection of the channel of distribution:
(1)   Level of Production: The manufacturers who are financially sound and are of a larger category, are able to appoint the sales representatives in a larger number and thug could distribute the commodities (products) in larger quantities. As against it, for the smaller manufacturers, it becomes necessary to procure the services of the wholesalers and the retail traders.
(2)   Financial Resources of the Company: From the financial point of view, the stronger company needs less middlemen.
(3)   Managerial Competence and Experience: If some producer lacks in the necessary managerial experience or proficiency, he will depend more upon the middlemen. The new manufacturers in the beginning remain more dependent upon the middlemen.
E. Other Factors
(1)   Distribution Channel of Competitors:  While determining the channel of distribution, the channels of distribution of the competitors too must be borne in mind.
(2)   Social Viewpoint: What is the attitude of society towards the distribution, this fact too must be kept into consideration while selecting the middlemen. 
(3) Freedom of Altering: While selecting the agents, this fact too must be kept into mind that in case of need, there must be the liberty of changing or replacing the agents (middlemen).
(OLD COURSE)
Full Marks: 80
Pass Marks: 32
Time: 3 hours
1. (a) Write True or False:                                                                                                                                             1x5=5
1)         Consumer’s behaviour has no difference with buyer’s behaviour.                  False
2)         Marketing and selling denote same meaning.                                                           False
3)         Product differentiation and market segmentation are same.                             False    
4)         All publicity is advertising.                                                                                                  False
5)         Cost analysis is a major part of business analysis.                                                     True
(b) Fill in the blanks:                                                                                                                                                    1x3=3
1)         Customer’s buying process has five steps.
2)         Order processing is one of the components of physical distribution mix.
3)         The channel of distribution is major variable of place mix.
2. Write short notes on (any four):                                                                                                                           4x4=16
a)         Market segmentation.
b)         Buying motive.
c)          Wholesaler.
d)         Marketing environment.
e)         Product branding.
3. (a) What do you understand by marketing? Explain the functions of marketing.                            3+8=11
Or
(b) What is meant by marketing concept? Describe the evolution of marketing concept.                            3+8=11
4. (a) Explain the nature of consumer’s behaviour and discuss the importance of studying it.       3+8=11
Or
(b) Assess the benefits of market segmentation and explain different bases of it.                                        6+5=11
5. (a) Explain the concept of product life cycle and discuss in brief about the management of different stages of it. 4+7=11
Or
(b) (1) Explain briefly the importance of branding.                                                        5
(2) Discuss the essential features of good packaging.                                                            6
6. (a) Discuss the importance of price as a part of marketing mix. Also discuss the pricing strategies for new product. 5+6=11
Or
(b) What is communication? Discuss the various components of communication.                          3+8=11
7. (a) Describe the role of physical distribution in marketing and discuss its various components.                                6+6=12
Or

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