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Saturday, November 30, 2019

B.Com 5th Sem: Principles of Marketing Solved Papers' 2016


2016 (COMMERCE)
(General) Course: 504
(New course)
(Principles of Marketing)
Full marks: 80
Pass marks: 24
Time: 3 hours
1. (a) Write True or False:                                            1x4=4
a)      Marketing and selling denote same meaning.                             False
b)      All publicity is advertising.                    False
c)       Consumer’s behaviour has no difference with buyer’s behaviour.
Ans: False,  When consumer and buyer are different then behaviours are also different.
d)      Product differentiation and market segmentation are same.                               False
(b) Fill in the blanks:                                                      1x4=4

a)      Order processing is one of the components of physical distribution mix.
b)      The modern concept of salesman-ship is based on the idea of Creating need and convert that need into want.
c)       Customers’ buying process has five steps.
d)      Market survey and market research are different.
2. Write short notes on (any four):                          4x4=16
a) Marketing environment: A variety of environmental forces influence a company’s marketing system. Some of them are controllable while some others are uncontrollable. It is the responsibility of the marketing manager to change the company’s policies along with the changing environment.
According to Philip Kotler, “A company’s marketing environment consists of the internal factors & forces, which affect the company’s ability to develop & maintain successful transactions & relationships with the company’s target customers”.
The Environmental Factors may be classified as:
1.       Internal Factor
2.       External Factor
External Factors may be further classified into: External Micro Factors & External Macro Factors
b) Market 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."
c) Product mix: Ans: 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) Advertising: It is the most commonly used tool of promotion. It is an impersonal form of communication, which is paid by the marketers (sponsors) to promote goods or services. Common mediums are newspaper, magazine, television and  radio. Advertisements play a very important role in offering innumerable benefits to the manufacturers, customers and to the society in general.
Importance/Advantages of Advertising
In the present day marketing, advertising has become increasingly important to business enterprises-both large and small. Even non-business enterprises have recognized the importance of advertising. The various advantages of advertising are discussed below:
a)      It creates demand for new products by informing people about the availability and suggesting them about the use of such goods.
b)      It promotes increased sales by maintaining the present demand and expanding the markets by attracting more people to buy.
c)       It facilitates purchasing by educating consumers to select correct brands of commodities which increase their personal satisfaction.
d)      It creates a proper base for the salesman by acquainting more people, in a shorter time, with the merits of a product, its new uses, new varieties and so on.
e)      It educates even salesmen and increases their confidence, capacity and initiative.
Limitations/Disadvantages/Objections to Advertising:
Several objections have been raised against advertising and some people criticize advertising as a social waste. The main point of criticism is as follows:
a)      Creates Monopoly in the market
b)      Higher the prices of product
c)       Misleading the consumers
d)      Wasteful consumption by the consumers
e)      Wastage of national resources
e) Buying motives: Ans: A consumer does not buy a product or service just because he wants to buy. There are many factors which affects buying behaviour of consumers. Human beings are motivated by ‘needs’ and ‘wants’. These needs and wants build up inside, causing people to desire to buy a product or a service. These needs and wants built up pressure or tension leads to reasons which are manifested in a psychological wave called ‘motive’. ‘Motive’ is the energy which implies behaviour thought it does not give pre use direction to that behaviour”. Motive is something which is capable of inducing a person to act in a particular way. Motive is the strong feelings, urge, instinct, drive desire, stimuli, thought, emotion, a belief, a tension that makes a person to react in the form of buying decision.
Professor D. J. Duncan defined, “buying motives”, as “those influence or considerations which provide the impulse to buy, induce action or determine choice in purchase of goods and services”.
In the words of Professor William Stanton, “a motive is a drive or an urge for which an individual seeks satisfaction; it becomes a buying motive when the individual seeks satisfaction through the purchase of something”.
Services or functions of Retailer to Wholesalers and Manufacturers
1.       Retailers give manufacturers or producers access to markets by offering them the opportunity to present their products to consumers.
2.       The manufacturer and the wholesaler are relieved of making individual sales to consumers in small quantities.
3.       Retailers supply valuable and reliable information to wholesalers and manufacturers about the consumers' demands and the changes occurring in their likes and dislikes.
4.       Information about the consumers' likes and dislikes received from the retailers through the wholesalers enable the manufactures to make suitable adjustments in the design, size and contents of their products. Thus they can manufacture right types of goods at right time.
3. (a) Discuss the nature and scope of marketing.                                                             7+7=14
Ans: Marketing
Marketing is an ancient art and is found everywhere. Formally or informally, people and organizations engage in a vast numbers of activities relating to exchange of goods and services that could be called marketing. Marketing is a social process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others. Marketing deals with identifying and meeting human and social needs or it can be defined as “meeting needs profitably”.
In the words of Philip Kotler, “Marketing is human activity directed at satisfying needs and want through exchange process.”
The American Marketing Association has defined marketing as “an organizational function and a set of processes for creating, communicating and delivering value to the customers and for managing customer’s relations in ways that benefit the organization and the stake holders.”
Peter Drucker says it this way that,” the aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. All that should be needed is to make the product or the service available.”
From the above discussion, we can say that marketing is the process of exchange of goods and services and includes all those activities which helps in exchange of goods and services.
Nature of marketing
Buyer and seller affect the demand for products in aggregate areas, market includes both the place and region which buyers and sellers are in a free inter course with another.
1) Marketing is a customer focus: Market intense to satisfy and delight the customer, the activities of marketing must be directed and focused at the customer marketers can remain in customers mind. As they are provided value for what they spend.
2) Marketing must deliver value: Marketer has to track customer needs and deliver the product as per their requirement. The co operate storage must be aimed at delivering greater customer value than competitors.
3) Marketing is business: When a customer is the focus of all activities the marketer has not to search customer to see response to his product. Customer group is decided from whom the product is prepared and presented.
4) Marketing is surrounded by customer need: Marketing starts with identification of customer needs and requirements’. These are termed into probable features that might satisfy the basic needs
5) Marketing is a part of total environment: Total environment mainly defined as the combination of all resources and institutions which are directly related to the production, distribution of goods, services, ideas, places and persons for satisfaction of human needs.
6) Marketing systems effect companies strategies: Marketing has its own sub-systems which interact with each other to turn complete marketing system that is responsible to company’s marketing strategy.
7) Marketing has a discipline: The sub of marketing has emerged out of business which has derived its existence from economic. These are different disciplines of marketing such as consumer behavior, legal aspects marketing research, advertising media, pricing, promotion method etc.
8) Marketing creates mutual beneficial relationship: As the customer is the focus of all marketing activities. The strategies of marketing have been shifting to different ways. Marketing is there for everything that results in mutual benefit of the customer.
9) Universal function: Marketing has a universal function in the sense that it can be applied to both profit motive and non-profit motive organization.
Scope of Marketing
The scope of marketing really is related to the old and new concept of ‘marketing’. Formerly the scope of marketing used to remain very much limited since the wants of the consumers too were quite limited. The competition was almost equivalent to nil. In the marketing, the satisfaction of the consumers was not at all con­sidered. The marketing was commodity based and immediately after the sale of the products, the marketing process was over. Nowa­days, the scope of marketing has become quite extensive, and the satisfaction of the customers too is kept in view. The process of marketing continues even after the sales have been affected. Today, the function of confirming the product, in accordance with the changing wants, habits and fashions of people, is undertaken by the process of marketing. Within the scope of marketing, -the following activities are covered:
1)      Study of Consumer Wants and Needs: Goods are produced to satisfy consumer wants. Therefore study is done to identify consumer needs and wants. These needs and wants motivates consumer to purchase.
2)      Study of Consumer behaviour: Marketers performs study of consumer behaviour. Analysis of buyer behaviour helps marketer in market segmentation and targeting.
3)      Production planning and development: Product planning and development starts with the generation of product idea and ends with the product development and commercialisation. Product planning includes everything from branding and packaging to product line expansion and contraction.
4)      Pricing Policies: Marketer has to determine pricing policies for their products. Pricing policies differs form product to product. It depends on the level of competition, product life cycle, marketing goals and objectives, etc.
5)      Distribution: Study of distribution channel is important in marketing. For maximum sales and profit goods are required to be distributed to the maximum consumers at minimum cost.
6)      Promotion: Promotion includes personal selling, sales promotion, and advertising. Right promotion mix is crucial in accomplishment of marketing goals.
7)      Consumer Satisfaction: The product or service offered must satisfy consumer. Consumer satisfaction is the major objective of marketing.
8)      Marketing Control: Marketing audit is done to control the marketing activities.
OR
(b) What are the elements of marketing mix? Discuss the important variables of product mix of an organisation. 6+8=14
Ans: Marketing Mix
Marketing mix refers to one of the major concept in modern marketing. According to Philip kotler “marketing mix is a set of controllable marketing variables that the firm blends to produce the response it wants in the target market”. It is the combination of four controllable variables which constitutes the company’s marketing system .the four controllable variables are:
1)      The product
2)      The price structure
3)      The promotional activities
4)      The distribution system
These elements are inter related and inter dependent since decisions in one area usually actions in other area.
Principle Ingredients of Marketing Mix (Four P’s) and their importance
Successful businessmen know the importance of marketing mix because they cannot design and promote their products without marketing mix.  It is a mixture of 4 P’s of marketing mix such as product, place, price and promotion. 4 P’s Of Marketing Mix:
1. Product: 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.
2. Price: It is the worth of product on which customers are agreed to buy the products.  Price of the product should be according to the range of regular customers.  Prices are fluctuating according to seasonal requirements. Marketers always try to satisfy their clients at any cost.  If employees of the company are satisfied with their job and performance rewards, they can become an effective asset of any organization.
3. Place: Products always design based on geographical place because customers buy products according to their traditions and seasons.  Companies which are going to spread their business networks throughout the world must visit the place where they want to open their branches. They need to study the traditions and seasonal changes of the country where they want to initialize their products.
4. Promotion: Promotion activities involve marketing and advertising.  Promotional activities are used to create awareness about the products.  Customers know about products and their specification through social marketing media. Companies adopt social marketing media in order to create awareness about their products and services.  Promotional activities and techniques are important if companies initialize new products or make some changes in product’s specifications. Promotional activities include advertising, selling, public relations and sales promotions.  Advertising is a paid form of promotion that grabs the attention of customers through channels or TV. It also involves relationships between customers and companies.  Marketers should design products that meet customers’ needs and demands.
Components of product mix: The important components of product mix are:
1. The Core product: The core product is the use, benefit or problem solving service for which the consumer is purchasing the product.
2. Features of a product: The product must contain the following features: Tangibility, exchange value, Intangible and associated attributes and consumer satisfaction.
3. 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.
4. 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.
4. (a) What do you mean by consumer behaviour? Discuss the economic determinants which influence 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.
OR
(b) Discuss the bases for market segmentation.                                                                14
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.

5. (a) What do you understand by product planning? Discuss the basic components of product planning.4+10=14
Ans: Product planning is the initial step of the overall marketing programme. In the competitive business world, producers try to produce products which can be nearer to consumer expectation. The pressure of competition forces the producers to replace the existing products by developing new consumers’ suitable and friendly products. Product planning covers all activities which enable producers and middle men to determine what should constitute a company’s line of products. Product development covers the technical activities of product research, production and design. The well attempt effort of product development increases the scope to satisfy the needs of the customers.
The product planning and development cover the following decision making area:
(I) What products should be produced?
(II) Expansion of product line.
(III) Determine the new use of its products.
(IV) What brand, package and label are used for different products?
(V) What should be quantity of its production?
(VI) Pricing policy etc.
In short, product planning involves the innovation of new products and improvement in the existing product.  In the words of Karl. H. Tietjen, “Product planning is the act of marketing and commercialization of new products, the modification of existing lines and the discontinuance of marginal or unprofitable items”. As per this definition product planning covers these three considerations.
(I) The development and introduction of new products.
(II) The modification of existing lines to suit the changing consumer needs and preferences and
(III) Elimination of unprofitable products.
Components of Product Planning:
1)      Product Innovation: Innovation is a part of continuous improvement. In the absence of innovation, products become stale and  hence die in the market. Innovation is required to keep up with the phase of changing market needs. According to Drucker, “Innovation will change customer’s wants, create new ones, extinguish old ones and  create new ways of satisfying wants.”
2)      Product Diversification: When a manufacturer offers more products in different areas, it is referred as product diversification. In fact, when a manufacturer diversification. Diversification normally involves business in a new area. E.g.: ITC entering into hotel business, sony entering into film production business.
3)      Product Development: It involves introducing a new product either by replacing the existing one or innovating a completely new product. It can either be brand extension or line extension. Company must be careful while developing new products because research shows that 92% of them fall in the market. Another danger of product development is cannibalization.
4)      Product Standardization: It implies a limitation of types of products in a given class. It gives uniformity in terms of quality, economy, convenience and  Value. E.g.: Each model of T.V. gives a different standard. Standardization promises a minimum level of performance and  hence is used as a benchmark for quality.
5)      Product Elimination: This involves an emotional decision of withdrawing the existing product line. Decision must be carefully taken based upon current market share, future prospects etc. The product elimination involves reviewing the present product portfolio, analyze their profitability and  then decide on discontinuance of a product.
6)      Product Mix and  Product Line: Product line is defined as a group of products offered by a company which belongs to same family of products or similar to each other or substitutes. E.g.: Product line of ponds for personal care products includes cold creams, talcum powders, etc. Product Mix is defined as combination of product lines offered by a company. E.g.: Product mix of Bajaj includes two wheelers, home appliances, electrical appliances, financial products etc.

OR
(b) What do you mean by product packaging? Discuss the essentials of good packaging.
Ans: Meaning of 'Packaging'
In this age of competition, good and appropriate packaging occupies much significance. The policies pertaining to the packaging are a part of the product planning and product development program.
Some of the main definitions of 'packaging' are being given hereunder:
In the opinion of Prof. Rustom S. Davar, Packaging is that art and/or science which is related to the development and use of materials, methods and equipment, for the packing of the goods in some containers, so that the product, while passing through various stages of distribution, could remain fully safe.
William Stanton has opined that the meaning of packaging is the total group of activities under the product planning which are related to the chalking out of a design of the outer cover of a product and the concerned production.
Characteristics of a Good Package
a)      Could attract one's attention.
b)      Could make the prompt recognition possible.
c)       Could create interest and maintain the same.
d)      Could create the desire for the procuring of the product.
e)      Could compel for purchasing the product.
f)       Could impress the heart of the consumer.
g)      Could add to the work-suitability, characteristics and total image of the brand.
In the end, it might be said that a very well made packing, would immediately attract the attention, would create interest, would develop desire and would ultimately press the consumer either to investigate and make enquiries into the product, or for pur­chasing the same.
6. (a) Discuss the functions and services of wholesaler in modern marketing.    7+7=14
Ans: Wholesale trader is one who sales to other middlemen, institutions and individuals a fairly large quantity. According to American Management Association, wholesalers sells to retailers or other merchants and/or individual, institutional and casual users but they do not sell in significant amounts to ultimate consumers. Wholesale trade is to do with marketing and selling merchandise to retailers, wholesalers or to individuals commercial and professional or other institutional contrast to household consumers, to individuals for personal use.
Functions or services of wholesaler
The wholesaler renders a number of services to trade, industries and commerce. The services rendered by the wholesaler may be classified as:
a)      Service to Manufacturer.
b)      Service to Retailer.
c)       Service to Consumer.
To Producers
a)      The wholesaler provides valuable information to the producers regarding the needs and the requirement of the consumer.
b)      As the wholesaler takes the responsibility of collecting order from retailers, he relieves the producers from this task and thereby encourage producers to concentrate on production.
c)       The wholesaler provides finance to the producers at the time of need.
d)      The wholesaler helps the producers in determining the quality and quantity of goods to be produced as he is in direct contact with the retailers.
e)      The producers are helped to maintain steady prices for the product because wholesaler buys when prices are low and sell when prices are high.
To Retailers
a)      The retailers are relieved of maintaining huge stock of goods because the wholesaler fills up the stock regularly. The wholesaler buys in large quantities and sell them at convenient lots to the retailers.
b)      The wholesaler provides finance and credit facilities to the retailer and thereby relieves the financial difficulties of the retailer.
c)       The wholesaler saves retailers from many types of risks. The retailer is not required to carry huge stock as he can get them from the wholesaler at regular interval. By extending credit has saved the retailers a lot.
d)      The wholesaler provides valuable advices to the retailer on all matters relating to new product and market condition and thereby relieves him from collection of market data.
e)      The wholesaler gives trade discounts on bulk purchase and as such it enables the retailers to earn handful amount of profit.
To Consumer
1)      He enables the consumer to purchase required quantities of goods at the desired time because he supplies goods regularly to the retailers.
2)      He provides goods at a cheaper rate because he facilitates in large scale production.
3)      The wholesaler is in a better position to stabilize prices of the products by adjusting demand and supply. The consumers are benefited a lot on account of stabilization of prices.
4)      There is no shortage of goods as the wholesaler goes on large purchasing.
5)      The wholesalers are wealth of information and as such this information are shared by the consumers.
OR
(b) Discuss the role of physical distribution system. How can one improve efficiency of physical distribution system? 7+7=14
Ans: 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.
Significance or Importance of Physical Distribution Management:
The physical distribution of goods has assumed great importance particularly in recent years, because of the ever increasing competition for markets. The importance of physical distribution lies in the following directions:
1. It Creates Utilities Of Time And Place: By making available a product at the place where and when it is needed.
2. It Accounts For A Major Portion Of Marketing Costs: According to one estimate, physical distribution costs constitute as much 60% of the total marketing cost. Physical distribution is a very important area for cost savings. Over the years, in most businesses, physical distribution costs have grown into a sizeable portion of the total costs. Surprisingly, physical distribution despite being an important cost area, has remained one of the neglected areas for cost reduction. 
3. Bigger Share in the National Wealth: It represents large share in the national wealth in the form of facilities—rail, road, trucks, highways, aircrafts, ship, docking facilities, pipelines, storage facilities and equipment.
4. Specialisation It Facilitates Geographic Specialization: Each area produces goods that its natural resources, climate or pool of manpower resources enable it to produce more efficiently.
5. Determines Standard Of Living: This is so because proper distribution of products makes them available to a large number of people, at a relatively lower cost. Thus it can be said that physical distribution directly affects sales, customer service and satisfaction, and costs.
Physical distribution is a very important area for cost savings. Over the years, in most businesses, physical distribution costs have grown into a sizeable portion of the total costs.
How Distribution channel can be improved?
The following five measures can be taken to improve distribution channel:
a) Make it a priority: At least one dedicated manager should be made sole responsible to manage the relationship between various distribution channels and build marketing program to derive revenue through the channel.
b) Development measurements and track performance: Sales at each point of channel is to be tracked to know the best performer. By tracking orders and total revenue of each point we can find underperformer and take necessary steps to improve it.
c) Communication with various distribution channels: Communication with each and every channel of distribution is necessary to identify the problems and to solve them.
d) Avoid pricing conflicts: A permanent pricing strategy should be adopted and it must be followed regularly. If conflicts arise because of price, steps must be taken as soon as possible.
e) Resolve conflicts quickly: Conflicts amongst various channels of distribution must be resolved as soon as possible.
OLD COURSE
FULL MARKS: 80
PASS MARKS: 32
1. (a) Write True or False:                                                                                                             1x5=5
a)      Creating customers means exploring and identifying the needs and requirements of customers.  True
b)      The scope of ‘marketing and ‘selling’ are same.                         False
c)       ‘Buying motives’ are compared with ‘Black box’ of a plane.  True
d)      Test marketing is the part of new product development process.     True
e)      Competition is a factor which influences the product pricing decisions.           True
(b) Fill in the blanks:                                                                                                        1x3=3
a)      Packaging facilities product identification.
b)      ‘Label’ helps in avoiding the consumer’s confusion.
c)       Marketing begins and ends with the consumer.
2. Write short notes on (any four):                                                                                           4x4=16
a)      Product positioning
b)      4P’s of marketing mix
c)       Warehouse
d)      Inventory control
e)      Globalisation
f)       Trademark
3. (a) Explain the nature and importance of marketing as a business function      3+8=11
OR
(b) Distinguish between the traditional and modern concept of marketing.          3+8=11
4. (a) What do you mean by consumer behaviour? Explain its significance in marketing. 4+7=11
OR
(b) Discuss the bases for market segmentation.                                                     11
5. (a) What do you understand by product planning? Discuss in brief the process of introducing a new product. 5+6=11
OR
(b) Define packaging. Discuss the essential features of good packaging.                 5+6=11
6. (a) Discuss the factors that influence the ‘pricing decision’ of an organisation.                11
Or
(b) Write in short:                                                                                            5 ½+5 ½ =11
1.       Component of promotion mix
2.       Components of communication
7. (a) What is channel of distribution? Discuss the factors governing the choice of channels of distribution. 4+8=12
OR
(b) “The middleman can be eliminated but not his functions.” Discuss                     12

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