2018 (November)
COMMERCE (Speciality)
Course: 301 (Principles of Marketing)
The figures in the margin indicate full marks for the
questions
(NEW COURSE)
Full Marks: 80
Pass Marks: 24
Time: 3 hours
1. 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
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.
Or
(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.
Or
(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.
Or
(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.
Objectives/Aims:
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.
Or
(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.
(OLD
COURSE)
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
Or
(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
Or
(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
Or
(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
Or
(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
Or
(b) What is channel of distribution? Discuss the factors
governing the choice of channels of distribution. 4+8=12
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