Principles of Marketing Solved Papers: Nov' 2018 (3rd Semester)

2018 (November)
COMMERCE (Speciality)
Course: 301 (Principles of Marketing)
The figures in the margin indicate full marks for the questions
Full Marks: 80
Pass Marks: 24
Time: 3 hours
1. Answer the following as directed:                      1x8=8

a)         Advertising is an impersonal and paid tool of promotional mix. (Fill in the blank)
b)         Food habit is the Social-culture component of marketing environment. (Fill in the blank)
c)          Personality is the Internal determinant of consumer behaviour. (Fill in the blank)
d)         Market segmentation is a consumer-oriented marketing strategy. (Write True or False)
e)         The terms ‘need’ and ‘want’ are used interchangeably in the marketing literature. (Write True or False)
f)          Branding of a product is the device of product differentiation. (Write True or False)
g)         The main aims of promotion are informing, persuading and reminding. (Fill in the blank)
h)         Pipelines are the specialized means of transportation designed to move the items like gas, crude oil, chemicals, etc.
2. Write short notes on any four of the following:           4x4=16
a) 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.
b) Modern approach of marketing: According to the modern concept, marketing is concerned with creation of customers. Creation of customers means identification of consumer needs and organising business to satisfy these needs. Marketing in the modern sense involves decisions regarding the following matters:
1. Products to be produced
2. Prices to be charged from customers
3. Promotional techniques to be adopted to contact and influence existing and potential customers.
4. Selection of middlemen to be used to distribute goods and services.
Modern concept of marketing requires all the above decisions to be taken after due consideration of consumer needs and their satisfaction. The business objective of earning profit is sought to be achieved through provision of consumer satisfaction. This concept of marketing is regarded as consumer oriented as the emphasis of business is laid on consumer needs and their satisfaction.
c) Buying motives: 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”.
d) Importance of price in marketing mix: 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.
e) Product labeling: A label identity is the product or brand. Labels are attached one to the product package to help the identification and provide some identity to the customer.
Function of Labeling:
a)      Describe the product and specify its contents.
b)      Grading of Product
c)       Identification of the Product or Brand.
d)      Help in promotion of Product.
e)      Providing information required by law.
f) The role of wholesaler: 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:
To Producers
1.       The wholesaler provides valuable information to the producers regarding the needs and the requirement of the consumer.
2.       The wholesaler provides finance to the producers at the time of need.
To Retailers
1.       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.
2.       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. (a) “Marketing is different from market.” Explain. Discuss briefly the scope of marketing.     6+8=14
Ans: Concept of Market
Traditionally market was defined as a place where buyers and sellers meet each other and conduct buying and selling activities. But in modern time, the term market has a broader meaning. Market refers to the whole of any region in which buyers and sellers are brought into contact with one another and by means of which the prices of the goods tend to be equalized easily and quickly.
In the words of Mr. Cornot, ”By market is meant not any particular place in which things are bought and sold, but the whole of any region in which the buyers and sellers are in such free interaction with one another, that price of the same goods tends to equality, easily and quickly.”
In the words of Mr. Pyle, “Market includes both a place and region in which buyers and sellers are in free competition with one another,”
From the above discussion, it is clear that a market is not only a place but also a region where buyers and sellers are interacted together for exchange of goods and services.
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.
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.
(b) What is promotion mix? Discuss the important variables of promotion mix.                4+10=14
Ans: Promotion mix: 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.
Elements of Promotion Mix
There are four elements of promotion mix:
a) Advertising: Advertising is a non-personal presentation of goods, services or idea. In advertising existing and prospective customers are communicated the message through impersonal media like radio, T.V., newspapers and magazine. It involves transmission of standard message simultaneously to a large number of people. The message transmitted is known as advertising.
b) Personal Selling: Personal selling is the process of assisting and persuading the existing and prospective buyer to buy the goods or services in person. It involves direct and personal contact of the seller or his representative with the buyer.
c) Publicity: Publicity is a non-personal non-paid stimulation of demand of the product or services or business unit by planning commercially significant news about the services or business unit by planning commercially significant news about in the print media or by obtaining a favorable presentation of it upon radio, television or stage.
d) Sales promotion: Sales promotion consists of all activities other than advertising, personal selling and publicity, which help in promoting sales of the product. Such activities are non-repetitive and one time offers. According to American Marketing Association, sales promotion include, “those marketing activities other than personal selling, advertising and publicity that stimulate consumer purchasing and dealer effectiveness, such as point of purchase displays, shows and exhibitions, demonstrations and various non-recurring selling efforts not in the ordinary routine.”
The main aim of sales promotion is to increase sales and profits of the firm but it is quite different from personal selling and advertising. In personal selling, customer is persuaded by a sales person face to face. Advertising is a non-personal mass communication media. Sales promotion, on the other hand, is a non-recurring and non-routine method. Its main aim is to supplement and coordinate the personal selling and advertising. It is a supporting and facilitating element of promotional strategy. Sales promotion bridges the gap of advertising and personal selling.
4. (a) What is consumer behaviour? Discuss the major influencing factors of 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.
(b) Discuss the benefits of market segmentation. Explain the requisites of a good segmentation.           6+8=14
Ans: Advantages / Importance / Significance of Market Segmentation:
The purpose of segmentation is to determine the differences among the purchases which may affect the choice of the market area and marketing strategies. Following are some of the benefits of marketing segmentation.
1.       Facilitates consumer-oriented marketing: Market segmentation facilitates formation of marketing-mix which is more specific and useful for achieving marketing objectives. Segment-wise approach is better and effective as compared to integrated approach for the whole market.
2.       Facilitates introduction of suitable marketing mix: Market segmentation enables a producer to understand the needs of consumers, their behavior and expectations as information is collected segment-wise in an accurate manner. Such information is purposefully usable. Decisions regarding Four Ps based on such information are always effective and beneficial to consumers and the producers.
3.       Facilitates introduction of effective product strategy: Due to market segmentation, product development is compatible with consumer needs as there is effective crystallization of the specific needs of the buyers in the target market. Market segmentation facilitates the matching of products with consumer needs. This gives satisfaction to consumers and higher sales and profit to the marketing firm.
4.       Facilitates the selection of promising markets: Market segmentation facilitates the identification of those sub-markets which can be served best with limited resources by the firm. A firm can concentrate efforts on most productive/ profitable segments of the total market due to segmentation technique. Thus market segmentation facilitates the selection of the most suitable market.
5.       Facilitates exploitation of better marketing opportunities: Market segmentation helps to identify promising market opportunities. It helps the marketing man to distinguish one customer group from another within a given market. This enables him to decide his target market. It also enables the marketer to utilize the available marketing resources effectively as the exact target group is identified at the initial stage only.
6.       Facilitates selection of proper marketing programme: Market segmentation helps the marketing man to develop his marketing mix programme on a reliable base as adequate information about the needs of consumers in the target market is available. The buyers are introduced to marketing programme which is as per their needs and expectations.
7.       Provides proper direction to marketing efforts: Market segmentation is rightly described as the strategy of "dividing the markets in order to conquer them". Due to segmentation, a firm can avoid the markets which are unprofitable and irrelevant for its marketing purpose and concentrate on certain promising segments only. Thus due to market segmentation, marketing efforts are given one clear direction for achieving marketing objectives.
8.       Facilitates effective advertising: Advertising media can be more effectively used because only the media that reach the segments can be employed. It makes advertising result oriented.
9.       Provides special benefits to small firms: Market segmentation offers special benefits to small firms. The resources available with them are limited as they are comparatively new in the market. Such firms can select only suitable market segment and concentrate all efforts within that segment only for better marketing performance. Such firms can compete even with large firms by offering personal services to customers within the segment selected.
10.   Facilitates optimum use of resources: Market segmentation facilitates efficient use of available resources. It enables a marketing firm to use its marketing resources in the most efficient manner in the selected target market. The marketing firm selects the most promising market segment and concentrates all attention on that segment only. This offers best results to the firm in terms of sale, profit and consumer support as compared to the results available from spending such resources on the total market.
In conclusion, it can be said that market segmentation offers benefits not only to marketing firms but also to customers. The marketing job will be conducted efficiently and the available resources will be utilised in a better mariner. These advantages also suggest the importance of market segmentation and make a case in its favour.
Essentials elements for success of Marketing Segmentation:
Market segmentation has its own benefits and costs. The strength of it lies in better understanding of consumers for making intelligent marketing decisions and their implementation. The success of marketing segmentation of depends on the following points:
1)         Marketing segment must identifiable and measureable: The segment or the group of buyers must be clearly defined. It is essential to know who is in segment and who is outside the segment to get demographic, social and cultural data about segment members. These of data should permit the measurements of the size and importance the segment as a potential product of marketing strategy.
2)         It evidence adequate market potential: Either an actual or potential need must exist in order to segment that opens an opportunity. Actual needs are recognised needs – overt demands for existing goods and services. Potential needs can be transformed into perceived wants through education or persuasion. Potential needs are more difficult to ascertain than the actual needs. Here, marketer is to develop strategies only for substantial segments – whether actual or potential.
3)         It is economically accessible: Segmentation involves a search for enough similarity among buyers to permit the seller each search of these potential customers economically. For example, segment members could be concentrated geographically, may be shopping at the same store or may be reordering the same magazines. A segment based on motivational characteristics cannot be reached economically.
4)         It reacts uniquely to marketing efforts: A given segmentation, to be meaningful, should differ in their responses to marketing efforts. Differing responses will help in optimizing the marketing operations by changing marketing efforts and amount involved.
5)         It is relatively stable over a period of time: Marketing strategies are long-range plans. Moreover, lead-time of up to a year often is needed to analysis market and to prepare a plan. Therefore, the segments that emerge rapidly and disappear just as quickly do not offer very good marketing opportunities for a firm that follows the generally accepted approach. Only highly innovative entrepreneurs can, at considerable amount of risk, attempt to serve these segments. It is only an exceptional case than a rule.
6)         It is dynamic: Once a company finds its segment, it will not last forever. The marketing is changing constantly. The segments should be modified with the changing marketing scenario. Technology, competition, perceptions and attitudes – all are volatile. Because of such changes, marketers must monitor the market constantly to detect the changes in it to adapt the strategy accordingly. That is nothing different than dynamic segmentation.
5. (a) What do you understand by product planning? Discuss its objectives and components.    2+ (6+6) =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.
Objectives of Product Planning:
Product planning is one of the most important functions of a marketing manager. The following are its objectives:
Ø  To offer products based upon customer needs.
Ø  To diversify, to capitalize on the company’s strength.
Ø  To utilize the available resources more profitability.
Ø  To decide on the elimination of non-profitable products.
Ø  To change the features of the product as per the changes in the market.
Ø  For long-term survival.
Components of Product Planning:
1.       Product Innovation
2.       Product Diversification
3.       Product Development
4.       Product Standardization
5.       Product Elimination
6.       Product Mix and  Product Line
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.
(b) Critically discuss the functions of packaging. What are the requisites of a good packaging?  7+7=14
Ans: Importance (Functions) of Packaging
a)      Safety of the Products. The main function of packaging is to protect the things from dust, water, moisture, insects, etc. Good packing saves the products against perishing, loss and other damages.
b)      Facility in Marketing Activities. Due to the packing, the movement of the products, shifting, preserving, opening, collect­ing and storage, become economical and easier for both the mid­dlemen as well as the consumers.
c)       Advertisement. One of the functions of packing is adver­tisement too. Till there exists any product packet, it keeps us aware of the same.
d)      Facility in Collecting. It is easier to store the packaged goods. Due to packing, the products remain safe in the godowns.
e)      Information to the Customers. While making the product attractive, the packing could also make the product useful and informative. It can extend necessary instructions and information more effectively to the customer regarding the use of the product.
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) Explain the objectives of advertising. Discuss the social and economic effects of advertising.  7+7=14
Ans: 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.
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.
Effects 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 effects of advertising are discussed below:
1.          Advantages of Manufacturers
1)         It creates demand for new products by informing people about the availability and suggesting them about the use of such goods.
2)         It promotes increased sales by maintaining the present demand and expanding the markets by attracting more people to buy.
3)         It creates goodwill by making the name of the manufacturer and his products famous and known in every home.
4)         It creates steady demand for products by smoothening out the seasonal fluctuations in demand.
5)         It reduces the cost of production by making large-scale production possible through creation of demand. The large-scale production reduces the total cost per unit of production.
2.          Advantages to Consumers
1)         It facilitates purchasing by educating consumers to select correct brands of commodities which increase their personal satisfaction.
2)         It makes available goods at reduced prices as advertisement increases sales, promotes large-scale production, reduces cost of production and distribution and increases competition. This result in reduction in prices and consumers get goods at reduced rates.
3)         It increases the utility of commodities. Consumers come to know about the proper and diverse use of commodities through advertising. This helps to increase the utility of commodities for the consumers.
4)         It ensures good quality of products. Advertising encourages manufacturers to produce better quality products which boosts the confidence of the consumers and ensures them availability of goods quality products.
5)         It reduces the possibility of being cheated as through advertisements the consumers come to know about the prices and composition of goods.
3.          Advantages to Salesmen
1)         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.
2)         It educates even salesmen and increases their confidence, capacity and initiative.
3)         It reinforces the sales points and simplifies work of the salesmen as they cannot reach all places and at all the times.
4)         It reduces the effort of the salesmen as they can reach the right prospects with the least effort.
5)         It increases the remuneration of salesmen by supplementing their efforts to increase sales and thereby increase remuneration.
4.          Advantages to the Society
Advertisement is beneficial not only to the manufacturers and the consumers but also to the society at large in the following ways:
1)         It uplifts the living standards of the people. Advertising acts as an effective tool in raising standard of living.
2)         It generates gainful employment opportunities. Advertisement generates gainful employment opportunities both directly and indirectly.
3)         It provides new horizons of knowledge. It improves the knowledge, language and style of the people.
4)         It provides a regular source of income to newspapers. It has been estimated that nearly 80% of the income of newspapers and magazines is secured through advertisements. In its absence, the newspapers and magazines would have become very costly and beyond the reach of people at large.
5)         It transforms culture of a nation. The basis of advertising is the taste of the public, its social customs and its culture. It influences the fashions, tastes, habits, attitudes and likes and dislikes, etc. of the society at large.
6)         It acts as a barometer of a nation’s economic growth. Advertising promotes healthy competition and provides better quality goods at cheaper rates to the society.
(b) What are the different modes of transport? Discuss the factors governing the selection of transport media.    10+4=14
Ans: Transportation as the last component of distribution system is to do with the movement of products from warehouse to the customer destinations. Transportation involves loading and unloading of products and transshipment between the place of dispatch and places of arrival. The major contribution of transportation management is cost reduction because, cost of transportation is 35 per cent of total distribution costs and 15 to 20 per cent of the total price paid by the users. The point lies in cost reduction and creation of maximum of time utility. Every marketer takes sufficient interest in company transportation and transportation decisions because, it is the correct choice of transport mode of modes that will help in gaining the effects as it affects pricing of products, regular and punctual delivery performance and the conditions of the goods in transit – all affecting finally the consumer satisfaction and sales profitability.
Full Marks: 80
Pass Marks: 32
Time: 3 hours
1. (a) Write True or False:                                            1x5=5
1)         In modern day marketing, the term ‘market’ refers to the place where buyers and sellers meet for the exchange of goods and services.              True
2)         Toothpaste is an example of consumer product.     True
3)         Advertising is not an element of marketing mix.      True      
4)         The scope of marketing and selling are same.           False
5)         Durable products are normally consumed in one or few uses.           False, Non-durable
(b) Fill in the blanks:                                                  1x3=3
1)         Sale focuses on transferring the title and possession of goods from sellers to consumers.
2)         Label provides all important information about the product.
3)         Personal selling develops personal relationship with consumers to increase demand for company’s products.
2. Write short notes on any four of the following:                                                                                             4x4=16
a)         Functions of packaging.
b)         Inventory control.
c)          Warehousing.
d)         After-sales service.
e)         Skimming price policy.
f)          4P’s of marketing mix.
3. (a) Distinguish between traditional and modern concepts of marketing.                                            11
(b) Discuss the importance of marketing environment analysis.                                                             11
4. (a) What do you mean by market segmentation? Explain briefly the market segmentation procedure.               3+8=11
(b) What do you understand by consumer behaviour? Explain its significance in marketing.                      3+8=11
5. (a) What is meant by product planning? Discuss the basic components of product planning.                    3+8=11
(b) What is branding? Discuss the merits of branding to manufacturers and customers.                              3+8=11
6. (a) Describe in short, the factors that influence product-pricing decisions.                                        11
(b) Explain the concept of sales promotion. Discuss its importance in marketing management.                               3+8=11
7. (a) Write a comparative note on the services rendered by the retailers and the wholesalers to the producers. 6+6=12
(b) What is channel of distribution? Discuss the factors governing the choice of channels of distribution.                4+8=12

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