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.
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B.Com 5th Principles of Marketing Solved Question Papers (CBCS and NON-CBCS Pattern)
****************************************
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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