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Section-A 2 Marks Questions

[Question 1 to 15] Page [1 to 3]
Q1. Distinguish between marketing management & sale management.
Ans. Marketing management: - is the process involving analysis planning, implementation
and control that is covers goods, service and ideas; that is rests on the notion of
exchange and that the goals is to product satisfaction for the parties involved.

Sales Management: - is the process include planning about the production, sales
promotion and profit through sales volume. In it mgt have to consider about how they
will increase sale. Mgt have to manage the sales. Not he customer satisfaction or
product. Main concentration is on sale.

Q2. What is Micro Environment?

Ans. The Micro Environment is the environment, which affects customer’s markets;
business markets and compares deals with the whole industry, market rather than
single business. In it we deal with demographic, economic, natural technological,
political and cultural development etc. of the market as a whole.

Q3. What is marketing planning?

Ans. As the name suggest marketing planning deals with planning about marketing. Within
marketing planning, marketing must make decision on target market, market
positioning, product development, pricing, distribution channels, physical distribution,
communication and promotion.

Q4. What is marketing audit?

Ans. It is control instrument to reassess periodically marketing effectiveness. It is a
comprehensive, systematic independent periodic examination of a company or
business units marketing environment, objectives strategies and activities view to
determining problem areas and opportunities and recommending a plan of action to
improve the companies marketing performance. Those companies that discover
marketing weakness go for marketing audit.

Q5. What is Direct Marketing?

Ans. Direct marketing can use a large number of channels for reaching prospects and
customers. These marketing face-to-face selling, direct mail marketing catalog
marketing, telemarketing, TV and other direct response media, on line channels.

Q6. What is Societal Marketing concept?

Ans. Societal Marketing concept holds that the organization task is to determine the
needs, wants and interests of target and to deliver the desired satisfactions more
effectively and efficiently than competitors in a way that preserves or enhances the
consumer’s and the society well being. We can say this concept calls upon marketers
to build social and ethical consideration into marketing practices.

Q7. Explain 4 P’s of Marketing.

Ans. 1) Price 2) Product 3) Place 4) Promotion
McCarthy populated a four-factor classification of these tools called the four Rs.,
which are above.

1) Price: Price includes price list, discount, allowance, and payment period and
credit term.
2) Product: Include product variety, quality, design, features, Brand name,
packaging, sizes, services, and warranties, Returns.

3) Place: Includes decision about channels, coverage, location transport etc.

4) Promotion: Include decision about sales promotion, advertising sales force,
public relations, direct marketing etc.

Q8. What is Levels of product?

Ans. There are five levels of product each level adds more customers’ value.

1) Core Benefit: The fundamental services or benefits that the customer is really
buying like the purchaser of the customer is really buying like the purchaser of
the drill is buying “holes”.
2) Basic Product: Here the stress is on product. Acc to our e.g. On drill.
3) Expected product: A set of attribute that the buyer normally expects and
agree to when purchase product.
4) Augmented product: Which encompasses all the augmentations and
transformations that the product.
5) Potential product: Which encompasses all the augmentations and
transformations that the product might ultimately go in the future. The
potential product points to the possible evolution of the product.

Q9. What is Price discrimination?

Ans. Price discrimination occurs when a company sells a product or services at two or
more price that do not reflect a proportional difference in costs. Discriminatory pricing
takes several forms.

1) Customer segment pricing: Different charges to diff. group.

2) Product form pricing: Diff. Version of the product charged differently.
3) Image pricing: Same item but diff. image or look charges diff. prices.
4) Location pricing: Same product is priced differently al diff. location.
5) Time pricing: Prices are varied by reason day.

Q10. What is Promotional Pricing?

Ans. Promotional Pricing is one of the techniques of stimulate early purchase. Under this
scheme co. give discounts and special price offer for promoting the sales promotional
pricing takes several forms.

1) Loss Leader Pricing: Here dept. drops the price on well-known brands to
stimulate additional store traffic.
2) Special event pricing: Special price offers in certain seasons to draw in more
3) Cash rebates: Cash rebates are offered to encourage sales.
4) Low interest financing: Instead of decreasing prices, the co. can offer low
interest financing like 0% financing etc.
5) Longer payment term.
6) Warranties and services contract: Services offer sales etc.

Q11. What is Product Management?

Ans. In product mgt. manager has to supervise specific product & brand. In its manager
have to make product plan, implement these plans monitor the result and take
corrective action when necessary. This is how the product will be managed properly
& efficiently. This thing help in taking Advantages of product management.

1) Cost effective marketing mix for products.

2) Product manager can react more quickly to the problem.
3) Smaller brands are less neglected.

4) P.M. is an excellent training ground for young executive because it involves

every area of the company.
But it is costlier, need experts & time consuming.

Q12. What is Price Discrimination?

Ans. In price discrimination seller offer different price terms to different people within the
same trade group. Basically it is illegal but it is legal when seller can prove that its
costs are different when selling to different retailer. This method is used to
accommodate difference in customers’ products locations and so on. It may be in any
of the following different forms

1) Customer segment pricing

2) Product form
3) Image pricing
4) Location Pricing
5) Time pricing

Q13. What are the conditions for price discrimination?

Ans. Condition for price discrimination but for working of price discrimination market must
be segment able, members of low price must not be able to recall the product in the
higher price segments, cost of segmenting not exceed from the extra revenue etc.

Q14. What is Product line?

Ans. Product line It is group of product that are closely related because they perform a
similar function, are sold to the same customer group are marketed through the same
channels, or fall with in given price ranges. Different executives manage each
product line.

Q15. Marketing Strategy.

Ans. Marketing Strategy is also known, as game plan marketing strategy is a strategy or
plan against competitors for marketing purposes. For competing in the today market
there is a need of strategies, which help, in sales promotion.
The marketing strategy is often presented in list form. Marketer has to think about
followed topics.

1) Target market
2) Positioning
3) Product line
4) Price
5) Distribution outlet
6) Sales force
7) Services
8) Advertising
9) Sales promotion
10) Research & development
11) Marketing research

Section-A 5 Marks Questions

[Question 1 to 11] Page [4 to 11]

Q1. Distinguish between Marketing & Selling.

Ans. Difference between marketing and selling is as follow:

Marketing Selling
It is a new concept It is a new concept.
It Stress the wants of the It stress needs of the
Buyer. Seller.
It include all those It include all activities
Activities in the process of which are performed in the
satisfying customer’s Need process of selling.
Starting focus mean end point Starting focus mean End point
Target customer integrated Factory product selling
profit market need marketing promotion profit through
through customer satisfaction.
At last we can conclude here Here main focus is product
Main focus is customer needs and goal is increase in sales
And goals is customer No attention on customer
satisfaction. Satisfaction.

Q2. What is marketing management? Explain different concepts of marketing?

Ans. Marketing is ‘how to sell the product in the market. OR we can say marketing
management is the process of planning and executing the conception, pricing,
promotion & distribution of ideas, goods and services to create exchange that
satisfy individual and organizational goals.

William J Stanton: Marketing Management is the marketing concept is action.

There are five competing concepts under which organization can chose to conduct
their marketing activities.

1) The production concept

2) The product concept
3) The selling/sales concept
4) The marketing concept
5) The societal marketing concept

1) The production concept: Holds that consumers will favour those products
that are widely available and how in cost manages of production oriented
org. concentrate on achieving high production oriented org. Concentrate on
achieving high production efficiency & wide distribution.
2) The product concept: Holds that consumers will favor that offer the most
quality, performance or innovating features. Manager in production oriented
organization focus their energy on making superior products and improving
them over time.
3) The selling /sales concept: Holds that consumers left alone, will ordinarily
not buy enough of the organization’s products. The organization must theory
undertakes an aggressive selling and promotion effort. Most firm practices
the selling concept when they have over capacity. Their aim is to sell what
they make rather than make what the market wants.
4) The marketing concept: Holds that the key to achieving organizational goals
consists of being more effective than competitors in integrating marketing

activities towards determining & satisfying the needs & wants of target
5) The societal marketing concept: Holds that the organization’s task is to
determine the needs, wants and interest of target markets & to delivers that
desired satisfaction more effectively & efficiency than competitors in a way
that preserves or enhances the consumer’s and the society’s well being.

Q3. Explain the concept of product mix in detail.

Ans. Product mix: Is the set of all product and items that a particular seller offers for sale
to buyer. A company's product mix has a certain width, length, depth & consistency.

1) Width: Product mix refers to how many different product lines the
company carries. Like P& G. provide product mix width of five lines – lie
hair care product, health care product, personal hygiene product,
beverages, food & so on.

2) Depth: P.M. refers to how many variants are offered of each product in the

3) Consistency: of the product mix refers to how closely relate the various
product lines are in end use, production requirement, distribution channels
or some other way.

4) Length: Refers to the total number of items in its product mix.

These four dimensions of the product mix provide the handles for defining
the co's product strategy. Product mix planning is largdy the responsibility
of the company's strategic planners. They must assess, with information
supplied by the company marketers, which product line to grow maintain,
harvest & divest.

Q4. What are the different methods of pricing of product?

Ans. Facts, which affect price decision, are consumer requirement & cost consideration.
Following are the basic policies recognized fro pricing.

1) Cost oriented pricing policy

2) Demand oriented pricing policy
3) Competition oriented pricing policy

1) Cost oriented pricing policy

a) Cost plus pricing or Cost oriented pricing policy:
The pricing method assumes that non-product is sole at a loss since the price covers
the full cost incurred. The price under this method is determined by adding a desired
percentage profits on cost to the total cost of the product. Adv. It is a long-term policy
1) Policy utility services like railway, post office. are pricing though this method.
2) Where it is difficult to forecast the future demand this method is appropriate.
3) If there are few buyers of the products, pricing can be justified.

1) It ignores completely the influence of competition & market demand.
4) Cost of joint products not easily estimated.

b) Rate of return or Target pricing Method:

In this method arbitrary desired rate of profit on the capital employed invested is
determined by the enterprise. Total desired profit is then added to the cost of

production & thus price per unit is determined.

Price per unit = Total cost of production + Total desired profit at desired rate on
Total no. of units produced
This method is good where there is no competition

c) Break even pricing:

Break-even point is a point there is no profit no loss. In this analysis firm determine at
what level of output revenue will equal to cost assuming certain price. There cost is
divided in two parts 1) Fixed cost 2) Variable cost. Break-even price is found out by
using the following equation

BEP = Total fixed cost / Margin of contribution per unit.

Margin of contribution per unit = unit selling price- Unit variable

B.E Analysis helps to establish prices only when the cost of production remains
reasonably constant.

d) Marginal cost or Incremental cost pricing:

In this method the price is fixed on the basis of additional variable cost associated
with an additional unit of product. The cost of producing and selling one more unit,
i.e. the last unit is taken as the base for the pricing under this method, only variable
cost is considered and recovered. Fixed cost is ignored.

1) Method is useful in introductory campaigns (New product should not bear
fixed test)
2) When product is perishable & competitor is weak this method is good
3) In order to protect shut down & keeping labour force busy in slack reason.
4) Method is particularly useful in quoting for competitive tender & in export

1) This method cannot be followed long time as its share of fixed cost remains to be

2) The producer may lose the market of other products because of the high cost &
competitors may drive away the customer.

2) Demand Oriented Pricing Policies:

Here demand is main factor. Price is determined by simply adjusting it to the market
conditions. High price is charged where the demand is intense & low price is charged
when the demand is low.
It has following method.
Purchasing Power pricing method: Price is determined what the purchasers can bear
to pay. All it depends upon their purchasing power. Retailer rather than
manufacturing firm uses it more. These methods. brings high profit in the short run.
But in long run it is not safe. It can be used. Where monopoly/oligopoly conditions
exist where demand is inelastic with respect to price.
Market penetrating pricing: Opposite to skimming pricing it offers a low introductory
price to speed up its sales & therefore widening the market base. It aims at capturing

Competition oriented pricing: Most of the companies fix the prices of their products
after a careful consideration of the competitor’s price structure. Three-policy
alternative are available to the firm under this pricing method.

a) Parity pricing or going Rate pricing: Prices are determined on the price
structure. Three-policy alternative are available to the firm under this
pricing method.

b) Parity pricing level or discount Pricing: Firm determine price below

competition level. This method is used by new firm entry the market.

c) Pricing above competitive level or premium pricing: Firm determines the

price determines the price of its product above the price of the same
products of the competitors. It may be due to better quality. they become
the market leader.

So all the above are pricing strategies used by different firms in different situation.

Q5. What is marketing implementation and different method of control?

Ans. Marketing implementation is the process that turns marketing plans into action
assignments and ensures that such assignments are executed in manners that
accomplished the plan's stated objective. For effective implementation of marketing
progressive need for skills.

1) Skill in implementing plans.

2) Skill in implementation result
3) Skill in assessing the company level where the problem exists.
4) Skill in reorganizing and diagnosing a problem.

Different Methods of control are

1) Annual plan control:

The purpose of this is to ensure that the company achieves the sale, profit and
other goals in its annual plan. The heart of A.P.C. is management by objective. The
prime responsibilities to top mgt & middle mgt. Purpose of this is to watch that
whether the planned result are being achieved.

2) Probability control:
The prime responsibility is with marketing controller. The main purpose of this is to
examine whether the company is making and losing money. Companies need to
measure the profitability of their various products, territories, customer group,
segments, trade channels & other sizes, This information will help management
determine whether any products or marketing experience should be expanded,
reduced or eliminated.

3) Efficiency control:
Lien and staff management and marketing controller does this control. The purpose
this control is to evaluate and improve the spending efficiency and impact of
marketing expenditure. This control helps in sales force, advertising sales promotion
& distribution etc.

4) Strategic Control:
Top management marketing auditors do this control. The purpose of this is to
examine whether the company is pursuing its best opportunities with respect of
markets, products and channels. This control helps in marketing effectiveness,
marketing audit, marketing excellence review, company ethical and social

Q6. What is the market research? What are the various steps undertaken in
marketing research?
Ans. Marketing Research: In marketing research gather significant information about
the marketing environment like opportunities for the business, requirement of the
user, strategies of the competitor, trends of the market etc. that helps the
management to decide about the product program.

The marketing Research Process:

Effective marketing research involves the five steps. Which are as follows

1) Define the problem and Research objective:

Mgt. must not define problem too broadly or too narrowly. At this stage problem
must be defined properly and the objective of the research should be made clear.

2) Develop the research plan:

After the cleverness of objective of research level. Plans should be made about
research level. Plans should be made about research design approaches,
Research instrument, contact methods etc. So that marketing research calls for
developing the most efficient plan for gathering the needed information.

3) Collect the information:

The data collection phase of marketing research is generally the most expensive
and most prone to error. Collection of data can be done through interviews,
observations etc. But the four problems arise some respondent will not be at
home must be reconnected and other responsible will refuse to cooperate. Still
others will give biased or dishonest answers. Finally some interviewers will be
biased or dishonest.

4) Analyze the information:

The next to last step in the marketing research process is to extract finding from
the collected data. The researches will also apply some advanced statistical
techniques and apply some advance statistical techniques and decision models
in the hope of discovering additional findings.

5) Present the finding: The research presents the finding to the relevant parties. The
researcher should present major finding that are relevant to the major marketing
decision mgt.

Q7. What are the different factors affecting consumers buying behavior?
Ans. A consumer's buying behavior is influenced by cultural, social personal and
psychological factors. Explanations of these are as follows:

1) Cultural factors:
a) Culture: Individual acquires a set of values, perception, preferences and
behaviors through his or her family and other key institution. Culture is the
most fundamental determinant of person's want and behavior.

b) Sub culture: Subculture includes nationalities, religions facial group and

geographic regions. Many subcultures make up important market segment
according to these segment researches design the product.
c) Social class: Social class takes the forms of a caste system where the
member of the different castes is reared for certain roles. Member of these
classes share similar values, interest behavior. So the marketer design
product according to their needs.

2) Social factors:
Like reference group, family & social roles and statures also affect consumer-
buying behavior.
a) Reference Group: A person's reference group consists of all the groups
that have direct or indirect influence on the person's attitude or behavior.
These groups are like family, friends, neighbour & co. worker.
b) Family: Family members are the most influential primary reference group.
c) Role and status: A person's participation in many group –family clubs

The persons' position in each group can be defined terms of role and status. Role
consists of activities that person is expected to perform. Each role carried a status of
consumer so as to provide potential product & brands.

3) Personal Factors
a) Age and stage in the life cycle: People by diff goods and services over a
b) Occupation and economic circumstances: Occupation also influences a
person's consumption better.
c) Life style: People from same subculture social class, and occupation may
lead quite different lifestyle. Lifestyle is a person's pattern of living in the world
as expressed in activities, interest and option.
d) Personality and self-concept: By personality we means distinguishing
psychological chrematistics that lead to relatively consistent and enduring
responses to environment.

4) Psychological Factors
a) Motivation: One person has many needs. A need becomes a motive when it
is aroused to a sufficient level of intensity. And this motive sufficiently
pressing to drive the person to act.
b) Perception: Is the process by which individual selects organizes and interpret
information input to create a meaningful picture of the world.
c) Learning: People act when they learn. Learning involves changes in an
individual 's behavior, behaviors arising from experience.
d) Beliefs and Attitude: Through doing and learning people acquire belief and
attitude. A belief is description thought that a person holds about something.
Beliefs are persons' enduring favorable or unfavorable evolution, emotional
feelings and action tendencies toward some object or idea.

So at last, we can say all these factors affect consumer's buying behavior.

Q8. What is the buying process and steps involved in it?

Ans. The buying process starts when the buyer recognized a problem or need. How the
buyer go for buying. How he will chose the item. The process is known as buying
process. Steps involved in buying process are:

1) Problem recognition: Buying process starts when the buyer recognized a problem
or need. He should know what he wants at this stage.

2) Information search: Consumer will be inclined to search more information

1) Heightened attention: Person simply becomes more respective to information
about a product.
2) Active information: Looking for reading material, phoning friends and visiting
stores to learn about the product consumer information sources. Fall into four
a) Personal source b) Commercial source c) Public d) Experimental

3) Evaluation of Alternative: Proper evaluation of each and every alternative. This

evaluation starts to satisfy a need. Secondly for benefits from the product
solution. Thirdly ability of advertising the benefits from the product solution.
Thirdly ability of adverting the benefits to satisfy need.

4) Marketing Strategy: This decision is based on the attitude of the individual and
the unanticipated situational factors. Like if U want to opt branded product then
you decision for purchasing go in that direction. The influence on individual of
other also affects purchase decision.

5) Post purchase Behavior: P.P.B. of the producer also comes under the buying
process. If the consumer will experience some level of satisfaction after purchase
then he/she will opt for that product for further purchase. If not then vice versa.
Consumers during these days are very much aware of the benefits they can get.
So they look for aware of the benefit they can get. So they look for.

1) Post purchase satisfaction

2) Post purchase Action
3) Post purchase use and disposal

Q9. What is marketing? Explain the marketing concept.

Ans. Marketing
Marketing is the creation of those utilities that add value to the goods and services
thereby become more useful and valuable to the consumers. Marketing includes all
those activities that direct the flow of goods and services from producers to the
consumers. Marketing is the process of understanding the consumer, his needs and
convert their needs into wants and satisfy them his expectation levels.

The Marketing Concept

Concept is philosophy, attitude a line of thinking an idea or notion relating any aspect
of divine and human creations. The philosophy of an organization in the dynamic
relation of marketing is referred to as a marketing concept. A concept is an
orientation or a philosophy. Marketing concept is an integration of marketing activities
directed towards customer’s satisfaction. It is a philosophy of business management,
based upon a company-wide accomplice of the need of the important role of
marketing in communicating the needs of the market to all major corporation
departments. Thus, it is a way of life in which the resources of an organization are
mobilized to create, stimulate and satisfy the consumer at a profit.

Q10. Discuss the evolution of Marketing Concept.

Ans. With the changing times in socio-economic values and other environment forces, the
marketing concept has undergone an evolutionary change. Concept under went a
change phase wise. The first concept was ‘Product concept’ that prevailed up to
1930s. This was founded on the strong belief that if a company makes available

really god products, there is no need for advertising – as good products are sold
automatically. During 1940s ‘Product Concept’ was replaced by ‘Sales Concept’ and
worked on the belief that sales will not result unless there are promotional efforts –
which meant aggressive advertising. This prevailed very strongly up to 1940s, but we
do find it in practice even to day. During 1950s, we come across customer orientation
concept, where customer is the centre of whole activities of production and
marketing. It meant-conduct of marketing research to know customers needs, make
available products-promote or advertise them to market effectively. Thus, product
came last and customer products-promote or advertise them to market effectively.
Thus product came last and customer first. Since 1950s-this is predominant even
today. This customer orientations concept has now undergone emerge and still
undergoing-which is called as social concept-that cares for consumer welfare and
environment protection. These changes took place in 1960, 70s, 80s and 90s. Thus,
a person wants can, which is less pollutant, a cigarette without smoke, a medicine
without side effect, a product that causes no environmental imbalance.

Q11. Which is the Best Marketing Concept?

Ans. From the above, the best concept in integrated concept, which cares for societal
needs using resources hamming none. Features of integrated marketing concept are:
(1) Customer-Orientation (2) Customer satisfaction and delight (3) Integrated
managerial actions (4) Realization of organizational goal.

Section-B 2 Marks Questions

[Question 1 to 20] Page [12 to 14]
Q1. What is Product differentiation?
Ans. Differentiation of physical product in the act of designing a set of meaningful
difference in the product distinguishes the Co’s offering from Competitor’s
performance features, reparability, reliability etc. So this is how one product is
differentiated from other.

Q2. What is Product life Cycle?

Ans. Product life Cycle is used to analyze a product category a product formula
product, or a brand. e.g. our product a brand is (smirn off). It provides insights into a
products life cycle competitive dynamics. Products life cycle.

Q3. What is Market segmentation?

Ans. Market segmentation identifies and profile distinct groups of buyers who might
require separate products and / or marketing mix. It has four levels.
1) Individual marketing
2) Segment Marketing
3) Local marketing
4) Niche Marketing.

Q4. What is Consumer Adoption Process?

Ans. Consumer Adoption Process is used to build an effective strategy for early market
penetration on. Adoption is an individual & decision to become a regular user of the
product. Stage in the adoption process. Adopters of new products have been
observed to move through following five stages.
1) Awareness
2) Interest
3) Evaluation
4) Trial

5) Adoption

Q5. Which factors influence the consumer adoption process?

Ans. Factor influencing the adoption process
1) People differ markedly in their readiness to try new product.
2) Personal Influence
3) Characteristic of Innovation

Q6. Marketing Intelligence System.

Ans. Marketing Intelligence System is a set of producers and sources used by manager to
obtain their everyday information about pertinent developments in the market
environment. The internal record system supplied result data; the marketing
intelligence system supplied happening data.

Q7. Target market. (Served market)

Ans. Target Market is the target or is the part of the qualified available market the
company decided to purpose. Like a company decide a concentrate its marketing
opportunities to determine total demand.

Q8. Positioning.
Ans. Positioning is the act of designing company’s offering and image so that they occupy
a meaningful mind. It means what you position in the mind of the prospect of the
product. It focus on how many and which difference to promote to the target

Q9. Market Evolution.

Ans. Product life cycle focuses on what is happening to the overall market. It shows
market-oriented picture. It is a broader look at whole market. A firm needs to
anticipate a market’s evolutionary path as it is affected by new need, competitor’s
technology, channels and other development. It has technology channels and other
development. It has four staged: 1) Emergence 2) Growth 3) Maturity 4) Decline.

Q10. Niche Marketing.

Ans. A niche is more narrowly defined group, typically a small group whose needs are not
being well served. Marketers usually identify which by dividing a segment into sub
segments or by defining a group with a distinctive set of traits who may seek a
special combination of benefits. Niche typically attracts smaller companies. The
customer in the niche has a distinct and complete set of needs e.g. smoker can be
further segmented into occasional smoker regular smoker etc.

Q11. Sales forecasting.

Ans. Sales forecasting is the expected level of company sales based on a chosen
marketing plan and an assumed marketing environment. Sales forecasting is the
result of an assumed marketing expenditure plan. Sales forecasting are based on
estimate of demand. This demand is analyzed by market demand. Sales forecasting
are used by financial department to take decision about needed cash & investment
decision about output level, manufacturing or purchasing of right quantity of material.

Q12. Consumer Behavior.

Ans. Consumer behavior studies how individual, group and organization select but use
and dispose of goods, services, ideas or experience to satisfy their needs and
desires. OR we can say “knowing consumer” marketer must target customers’ want,
perception, preferences, shopping and buying behaviors. There is lots of factors
influence consumers behavior. – Cultural factor, social factor, personal factors
Psychological factor etc.

Q13. Distinguish between product image and brand image.

Ans. Difference between product and brand image is as follow:
Product Image Brand image

P.I. is the particular picture that is the set of beliefs

Consumer acquire of an actual or about a brand make
Potential products. This image is up is called brand
Based on the characteristics of the images. Means where
Product like size, use etc. The brand stands on
Each attribute like
Image of brand Image belongs to the company
Q14. Convenience goods.
Ans. Convenience goods are that the customers usually purchases frequently,
immediately, and with a minimum of efforts. Example includes tobacco products,
soaps & newspaper. These can be further divided into

a) Impulse goods: Purchased on impulse, without any planning and efforts.

Usually displayed widely.
b) Emergency goods: When need is urgent like umbrellas in rainy season.
c) Staples: Consumer purchase on regular basis, like of toothpaste etc.

Q15. Marketing decision support system. (MDSS).

Ans. Marketing decision support system. (MDSS) is that which co-ordinates collection of
data, systems, tools & techniques with supporting software and hardware by which
an organization gathers and interprets relevant information from business and
environment and turns it into a basis for marketing action.

Q16. Customer value and satisfaction.

Ans. Customer value and satisfaction. Value is the customer estimate of the product’s
overall capacity to satisfy his or her needs. Where as satisfaction is the fulfillment of
customer requirement at the lowest possible cost of acquisition, ownership & use of
the product good value then only it can satisfy customer’s need.

Q17. Marketing information system (MIS).

Ans. Marketing information system (MIS) consists of people, equipment and procedure to
gather, sort analyze, evaluate and distribute needed, timely and accurate information
to marketing decision maker, In each & every organization firms must organize the
flow of marketing information to its marketing managers to fulfill their information
need. The role of MIS is to assess the manager’s information need and supply
information timely to take decision.

Q18. What is diffusion process?

Ans. The social process of spreading information about new products and services to
persuade consumer to accept them is known, as “diffusion” Diffusion
processes is slow business process and entire process takes several years. It
is important to identify target segments at each stage in the diffusion process.

Q19. Discuss the kind of customers present in a market.

Ans. A market involves following kind of customers:
1) Innovator: youngest people have the social status & wealth.
2) Early adaptor: Generally influential i.e. leader. They have high status within
own social group.

3) Early majority: Most deliberate – not consider buying a new product until a
number of their peer have done so.
4) Late Majority: Person who have below average income and social prestige
and older than members of earlier groups.
5) Laggards: They have still lower income & social status they are the last over
the adopt a new products by the time they but a new product.

Q20. Trademarks.
Ans. Trade marks- when the brand mark is registered and legalized it becomes a
trademark. In that sense all trademarks are brands but all brands are not trademarks.

“Brand or part of a brand that is given legal protection because it is a
capable of exclusive appropriation.”

Thus trademark is essential a legal term protecting the manufacture’s right to use the
brand name or trademark.

Section-B 5 Marks Questions

[Question 1 to 11] Page [15 to 23]
Q1. What is STP?
Ans. STP means

S  Segmentation
T  Targeting
P  Positioning

Market Segmentation: Whenever a market for a product or services consists

of two or more buyers, the market is capable of being segmented this divided into
meaningful buyer groups. The purpose of segmentation is to determine difference
among buyer, which may be consequential in choosing away them or marketing to

Targeting: When the market is segmented than targeting starts. After various
segments of the markets are evaluated. So we can say targeting means to evaluate
the attractiveness of each segment so that sales can be increased.

Market positioning: To identify possible positioning concepts for each target

segment & to select, develop & communicate the chosen positioning concept.

Q2. What is the different basis of segmentation?

Ans. Following are the different basis of segmentation:

1) Geographic segmentation: Calls for dividing the market into different geographical
units such as nations, states, regions, counties, cities or neighborhoods.

2) Socio/ Economic Factor: Demographic Segmentation: The market is divided in to

groups on the basis of demographic variables such as age, family, life cycle,
gender, income, occupation, education, religion, family, size nationality or social

3) Psychographics Segmentation: Buyers are divided into different groups on the

basis of life style and /or personality. People in the same demographic group can
exhibit vary different psychographics profiles.

4) Behavioral Segmentation: Buyers are divided into group on the basis of their
knowledge of attitude toward use of or response to a product. Many marketers
believe that behavioral variable – occasions, benefits, usage rate, loyalty stages,
buyer readiness stage & attitude are the best starting points for constructing
market segments.

Q3. What are the different features of product differentiation?

Ans. Differentiation features of the product differentiate the product from another product.
Today is the day of change. But before deciding about the differentiation company
must decide whether to offer features customization to customer at a higher cost or
more standardization to customers at lower cost. Following are the different feature
for product differentiation.

1) Performance Quality: refers to the level at which the product's primary

characteristics operate. The manufacturer must design a performance level
appropriate to the target market and competitor's performance level. Performance
quality can be determined through profitability, time utilization cost etc.

2) Conformance Quality: is the degree of which all the produced units are identical
meeting the promised target specification. Low conformance means when
product will fail to deliver its promise.

3) Durability: is the measure of the product expected operating life under natural
and stressful conditions? Basically customer feels if they pay more for products
they have more durability. But is not purely true. No technological obsolescence
is three if price are less.

4) Reliability: is the measure of the probability that a product will not malfunction or
fail within a specified time period.

5) Reparability: is the measure of the case of fixing a product that malfunctions or

fails. This features support the customer decision to purchase.

6) Style: Describe the product 's book & feel to the buyer like packaging,
accessories etc.

7) Design: The totality of features that affect how a product looks & functions in
term of customer requirement

so these are the features of the product differentiation.

Q4. What is consumer Adoption process?

Ans. Consumer adoption process is a process in which potential customers learn about
new product and to make an individual try them & adopt them is decision to become
a regular user of the product. This process is later on followed by consumer loyalty.
Process. Following are the various stages in Consumer adoption process
The consumer adoption process on the mental process through which an individual
passes the first hearing about an innovation to final adoption. Adopter of new
products has been observed to move through the following five stages in consumer
adoption process.

The consumer adoption process focuses on the mental process through which an
individual passes from the first hearing about an innovation to final adoption.
Adopter of new products has observed to move through the following five stages.

1) Awareness: The consumer becomes aware of the innovation but lacks

information about it.

2) Interest: The consumer is stimulated seek inf. about the information.

3) Evaluation: The consumer considers whether to try the innovation.


4) Trial: The consumer tries the innovation to improve his or her estimate of its

5) Adoption: The consumer decides the make full & regular use of the innovation.

This progression suggests that the new product marketer should aim to facilitate
consumer movement through these stages. The manufacturer should consider
offering a trial use plan with option to buy. So this is brief view of consumer adoption

Q5. What is the process of new product development? Explain various steps in
Ans. Basically there are eight stages involved in development of new product, which are
as follows:
Idea Generation: The process starts with the search of ideas. Top management
should define the product and market to emphasize and should state the new
products Objective, Idea can come from various sources customer, scientists,
employees, competitors, channel member & top mgt. This step emphasis on
customer needs & wants. This step can take place through attribute listening forces
relationship, morphological, analysis, Brainstorming etc.

Idea Screening: Any company can attract good ideas by organizing itself properly.
The co. should motivate its employees to submit their idea to an idea chairman then
this idea should be stored in three groups. Promising ideas, marginal ideas & rejects.
In screening ideas company must avoid two types of error. A drop error –when co
dismissed otherwise good ideas. Second is a Go error when the co. permits poor
ideas to move into development and commercialization. In it product ideas rating
devices are also used.

Concept Development and Testing: For developing a good product we must have
product ideas, product concept product image. The entire like product positioning
map, brand positioning map etc. help in concept development.

Where as concept testing calls for testing product concept with an appropriate group
of target consumers, then getting those consumer's reaction

4) Marketing Strategy Development: After testing the new product manger must
develop a preliminary marketing strategy plan for introducing the new production into
the market. Marketing strategy plan consists of three parts. Acc. to first plan –target
market size, structure & behavior etc should be described acc. to second plan. M.S
outlines product's planned process Acc. To third plan describes the ling run sales &
profit goals & marketing mix strategy over time.

6) Business Analysis: After mgt. develops the product concept and marketing
strategy, it can evaluate the proposal’s business attractiveness. Mgt needs to
prepare sales, cost & profit projects to determine whether they satisfy the
companies objective. In it mgt. have to decide about estimating total sales.
Estimating costs & profits.

7) Product development: R&D department will develop one or more physical

version of the product concept .Its goals is to find a prototype that the consumers
see as embodying the key attribute described in the product concept statement
that perform safely under normal use & manufacturing costs.

8) Market Testing: Have product sales met our expectation? Whether the marketing
test is under control.

9) Commercialization: Are product sales meeting our expectation? If the company

goes ahead with commercialization, it will face its targets costs to date. It include
(When, where, to whom, how) answer of all the question relating to launching of

Q6. Explain the term positioning.

Ans. Positioning:
It the act for designing the company's offering and image so that they occupy a
meaningful and distinct competitive position in the target customer's minds.
Positioning is what you do to the mind of the prospect.

Each firm when want to promote difference then that firm appeal most strongly to its
that firm to different it self with another company. Like Auto Company might choose
to differentiate its cars on during durability while its competitor choose to emphasize
fuel economy, comfort or smoothers of ride. Here the end result of positioning the
successful creation of a market focused value proposition.

Q7. Write short not on packaging, labeling

Ans. Packaging:
Packaging includes the activities designing and producing the container or wrapper
for a product. The container or wrapper has become a potent marketing tool. Well-
designed package can create convenience value for the consumer and promotion
value for the producer.
i. Primary package: Like old spice after-shave lotion in a bottle
that is in a cardboard box.
ii. Secondary package: That is in a corrugated box like shipping
packages containing six dozed boxes of old spice.

Labeling is subset of packaging. Label may be a simple tag attached to the product
or elaborately designed graphic that is the part of the packaging. Label might carry
only the brand name, which help in identification of the product. The label might help
in identification of the product. The label might help in identification of the product.

The brand name which help in identification of the product. The label might describe
the product, which made it, where it was made, when it was made it was made, what
it contains, how it is to be used and how to use it safely. Finally the label might
promote its product through attractive graphic.

Q8. What is branding? What are the branding strategies and its benefits?
Ans. Branding: Manufacturer who decides to brand their product must choose which brand
name to use.
Brands can be given with any of the four strategies.

1. Individual brand name

2. Blanket family name for all products
3. Separate family name for all products.
4. Company trade name combined with individual product name

Some points should be remembered before allocating brand name to the product.

1) It should suggest something about the product's benefit.


2) It should suggest product, qualities such as action or color.

3) It should be easy to pronounce, recognize and remember.
4) It should be distinctive.
5) It should not carry poor meaning in other countries & language.

Brand Strategy Decision: A company has five choices when it comes to brand
1) Line extension: existing brand name extended to new size of flavor
and soon.
2) Brand extension: Brand name extended to the new product
3) Multi-brands: New brands introduced in the same product
4) New brands: New brands names for a new category product.
5) Co- brands: brands bearing two or more well-known brand names.

Q9. What are the phases or stages of consumer adoption process?

Ans. Once a product is introduced in the market, the major challenge rests with the
marketing function. The product so introduced is to be ‘adopted’ i.e., purchased and
diffused i.e., percolated through out the markets. Adoption is the decision of an
individual to use the product.

Stages in Adoption Process

The adoption process is believed to follow a five stage sequential process beginning
with actual awareness of a product’s existence and ending with adoption or
commitment to the product. From the point in time when an individual first hears of an
innovation to the point in time when adoption occurs has been recognized as
consisting of five logical stages namely, awareness – interest-evaluation-trial and

1. Awareness Stage: - Here the individual is exposed to the innovation but lacks
complete information about it. That is, the individual is aware of the innovation
but is not yet motivated to seek further information. He knows of product

2. Interest stage: - The individual becomes interested in the new idea and seeks
additional information about it. The innovation is favored in a general way but
is not yet judged in terms of its utility to a specific situation. He seeks further

3. Evaluation stage: The individual applies his mental faculty to the innovation to
compare present and anticipated situation and then decides to whether or not
to try it. It is to do with careful weighting as to whether or not to try it.

4. Trial stage: -The individual uses the innovation uses the innovation on a
small-scale in order to determine its utility in his own situation. That is he tries
it one or twice to confirm it’s utility.

5. Adoption stage: - The individual decides to continue the full use of the
innovation. That is he purchases and repurchases.

It is worth emphasizing here that any innovation may be rejected at any stage of
adoption process. Even rejection can take place after adoption, which is called as

discontinuance. Further, a consumer may move through several of these stages

simultaneously as it happens in case of impulse buying.

Q10. Explain the process of new product development.

Ans. Steps followed in the process of new product development are:

1. Idea generation
Product idea generation means fusion of perceived need with the recognition
of a technical opportunity.

The Sources of new product ideas: - These sources are internal and external:
The internal sources are:
1. Basic research
2. Manufacturing
3. Sales people.
4. Top management.
The external sources are:
1) Secondary source of information.
2) Competitors.
3) Customers.
4) Resellers.
5) Foreign marketing.
6) Inventors

Methods or techniques of getting new ideas. The most reliable method is:
1. Focus groups.
2. Attribute listing.
3. Forced relationships.
4. Brain storming
5. Reverse brainstorming.
6. Problem inventory analysis.

2. Screening new product ideas

New product idea screening is the development and use of criteria to evaluate
the potential of new product ideas. It is that process whereby ideas from the
new product pool have to be screened to find those that are worthy of
continued development and evaluation.

Reasons for cutting the ideas: -

Good many ideas are cut because of:
1. All good ideas are not equally promising.
2. Resource constraints.
3. Product development is a continuous process.

The Screening procedure

The procedure involves two steps. The first task is to determine
whether a given product is compatible with the company objectives. The
second task is to determine whether the new product idea is compatible with
the company’s resources.

The screening methods: - There are two most commonly used methods used
for screening the new product ideas namely, 1. check-list method and 2. Idea
rating method.

Avoid mistakes in screening: - There can be two types of mistakes likely to be

ignored which will prove fatal to the company. These are, ‘go’ and ‘drop’

3. Business analysis
It is an in-depth study of the estimated economic feasibility of new product
ideas. It is an attempt to predict the economic consequences of the product
for the company as a whole.

Steps in business analysis. Three steps are involved in business analysis

namely, demand analysis, cost analysis and profitability analysis. The
profitability analysis is done through four analyses namely, break even, rate of
return, payout and discounted cash-flow. Finally the results are presented in
the form of Business Analysis Chart.

4. Product development
Product development stage marks the making up of actual prototype of the
product and tested, and refined and marketing campaign is planned. It is a
scientific and engineering task leading to the design and building of prote-
type, working models on one hand and functional testing on the other.
This stage is important because:
1. It gives a concrete form.
2. It speaks of investment.
3. It provides definite answer.

Aspects of product development

There are two aspects namely technical development and market
development. Technical development is the job of engineers and technicians
and is to do with two dimensions namely, applied engineering research and
manufacturing research. Market development aspect is concerned with
testing the product by marketing experts and involves two tests, namely,
product concept testing and developing other aspects of marketing-mix. The
first deals with concept and preference testing. The second part deals with
product branding, product packing, product labeling, product patenting and
product communication programme.

5. Test-marketing
It is the controlled experiment done in a limited but carefully selected part of
the market place whose aim is to predict the sales or profit consequences,
either in absolute or relative terms of one or more proposed marketing
Why test-marketing?
Test marketing is undertaken because of:
1. Improving the knowledge of product sales.
2. Pretesting alternative marketing plans.
3. Predicting product faults.
4. Knowing reactions of competitors.

The problems in test-marketing.

The basic problems of test marketing are:
Inaccurate results.
1. It is an expensive exercise.
2. It is time consuming affair.
3. It lets the tips to competitors.

Essentials of sound test-marketing

The essentials of test-marketing worth calling as sound are: -
1. Representative test market
2. Perfect projection of results.
3. Demographic validation.
4. Competitive validation.
5. Behavioral validation.
6. Strategy validation.

How test marketing is conducted?

Either it is done by the firm or is managed by advertising agencies. In
either case, the test marketing plan covers the points namely, number of
selected cities, length of test run, the information to be collected and the
action to be taken.

Alternatives to test-marketing
The alternatives to this technique of test-marketing are:
1. Markov chain analysis.
2. Model test-marketing.
3. Market simulation model.
4. Roll-out method.

6. Commercialization
It is the actual introduction of the product into the market place, with all of the
related decisions and resource commitments. It is the stage whereby
contracts are entered into for the supply of raw materials and components
parts, channels of distribution are selected, manufacturing facilities and
equipments are set in operation, sales people are hired and advertising
programmes are okayed.

This involves two important decisions as to entire market versus selected

segment and crash versus rollout introduction. These decisions are of vital
importance as they involve heaviest investment and efforts.

Q11. What are the essentials of a good brand name?

Ans. Following factors make a brand name good one:

1. It must be Easy to Pronounce and Remember: For instance, “HOECHEST” is

difficult to pronounce. On the other hand, “Murphy Baby” and ‘Click’ are fine

2. It should be Short and Sweet: The name must e short yet sweet, appealing to
eyes, ears and brain. Mukund and Mukund, Panama, D.C.M., Bombay
Dyeing, Bata, Tata, etc, are of such kind.

3. It Should Point out Producer: The name or symbol should be given

connotation of the product, producers, etc. The best examples are NELCO,
MICO, LT. AMUL, and B.T. INDAL etc.

4. It should be Legally Protectable: The brand name must lend them for legal
protection. A brand name, legally recognized, is known as trademark.
Normally, it depends on the will and discretion of a producer, middlemen than
on brand name.

5. It should be Original: The brand name selected must not be general be

specific. It must be such that others do not easily copy it. Hardly one finds the
use of brand “Philips” by imitators. On the other hand, “Gluco” and “Glucose”
biscuits are different. There is difference in “Upkar and “Upchar” Supari. But
for a common man, it is more difficult to identify and differentiate.

6. It Should Reflect production Dimensions: A good brand name is one which

reflects directly or indirectly some dimensions say product benefit, function,
results and so on. For instance EZEE of Godrej Company is really easy to
use for better results; another brand GOOD-NIGHT of a mosquito replant pad
implies the user says ‘god-night’ to mosquitoes as he is going have good and
sound sleep at least eight-hours. PUMA brand shoes are the symbol of speed
as panther is shown.

Section - C 2 Marks Questions

[Question 1 to 26] Page [24 to 27]

Q1. What is Sales Promotion?

Ans. Sales Promotion: is a total used to create stronger & quicker sales. If effects are
usually in short run because in long run only brands are preferred. Three benefits can
be diverse which is sale promotion.
1) Communication 2) Incentive 3) Invitation

Q2. What is Advertising?

Ans. Advertising: - It is used to build a long-term image for a product and to trigger quick
sales. It is one of source to make aware people about product. There are
various/source to make aware people about product 1) Newspaper 2) TC 3) Radio
4) Pamphlets etc.

Q3. What is Online Marketing?

Ans. On line marketing: It is channels of marketing through which a person can reach via
computer & modem. Through this channel information services are provided to
consumer, which are interested in on line dealing. This can be done by placing Ads,
using, E-mail, creating an electronic storefront. participating in newsgroup and
bulletin etc. It is most convenient method of marketing to the on line user.

Q4 What is Publicity?
Ans. Publicity: It is program design to promote company is image or its products. It is
basically used for launching new products, repositioning a mature product, building
interest in product, repositioning a mature product, building in a way that project
favorably on its products. About the Co & its product.

Q5. What is Personal Selling?

Ans. It the most cost effective tool at later stage of the buying process, particularly in
building up buyer’s preference, conviction and action. It is an ancient art analysis and
customer management. It is method of the method to effect sales.

Q6. What is Market Demand?

Ans. M.D. for a product is the total volume that would be bought by a defined customer
group in a defined geographical area in a defined time period in a defined market
environment under a defined marketing program for this we have to estimate
marketing opportunities to determine total demand.

Q7. What is Communication Process?

Ans. Communication Process
1. Identify the target audience.
2. Determine the communication objectives.
3. Design the message.
4. Select the communication channel
5. Establish the total promotion budget.
6. Decide on promotion mix
7. Measure the promotion’s result.
8. Manage and co-ordinate the integrated marketing communication.

Q8. What is Personal Interview?

Ans. It is most versatile of the other method of interviewing. In this type of interview
interviewer can ask more questions and can recorded additional observation about
the respondent. Both the parties face each other. This is the best way of

communications. But it is the most expensive method and requires more

administrative distortion. There are also some chances of biasness or distortion. It
can be of two forms:

1) Arranged Interview
2) Intercept Interview

Q9. What is Sampling?

Ans. When population is not observed for research purchase only selected person is used
for the purpose. Then that method is known as sampling. The marketing researchers
must design a sampling plan. In which he has to take three decisions.

1) Sampling Unit: Who is to survey?

2) Sampling Size: How many people should be surveyed?
3) Sampling procedure: How should the respondent be chosen.

Q10. How sampling can be done?

Ans. Sampling can be done in following three forms

a) Simple random sample: Every member has equal chances of

b) Stratified Random sample: Population is divided into group, then
Random sample are drawn from that group.
c) Cluster (area) sample: Prescribed number of people in each of several

Q11. What is Customer Database marketing?

Ans. Customer database marketing is the process of building, maintaining and using
customer database and other databases marketing is the process of building,
maintaining and using customer database and other data bases (product supplied
resellers) for the purpose of containing and transacting, A customer database is an
organized collection of comprehensive data about individual customer or prospects
that is current accessible and actionable for marketing purpose as legal generation,
sale of product or services or maintenance of customer relationship. In it information
like (age, income, family members, birthday, activities etc.

Q12. What are Public Relations?

Ans. Involves a variety of programs designed to promote and to Product Company’s
image or its individual process. It is an important marketing too. Most companies
operate PR department to plan these relations.

Q13. What are the activities performed by public relations department?

Ans. Public Relations department performs following five activities:

1) Press relations
2) Product publicity
3) Corporate communication
4) Lobbying: dealing with legislation and government officials to promote
or defeat legislation and regulation.
5) Counseling: Advising management about public issues and company
positions and image.

Q14. What are the marketing channels?

Ans. Marketing Channels / Trace Channels/ distribution Channels: are set of
interdependent organization involved in the process of making a product or services
available for use or consumption.
For marketing the product in the market the producer work with making a product or
service available for use or consumption.
For marketing the product in the market the producer work with marketing
intermediaries. The marketing intermediaries use marketing channels.

Q15. What is promotion budget?

Ans. Promotion Budget: Promotion budget is the budget in which the company has to take
marketing decision budget. Different marketing activities are allocated funds.

Q16. What are the different methods of budgeting?

Ans. Different methods of budgeting are:

1) Affordable method: Here promotion budget set at what they think company
can afford. They don’t think about requirement.
2) Percentage of sales Method In it promotion expenditure vary with sales.
Encourage competitive atmosphere.
3) Competitive parity Method: Promotion budget is set up on the behavior of the
competitor’s achievement.
4) Objective and Task Method: Calls upon marketers to develop their promotion
budget by defining their specific objective, determining the tasks that must be
performed to achieve these objectives, and estimating the cost of performing
these tasks.

Q17. What is super marketing?

Ans. Super Marketing: Super Markets remain the most frequent shopped type of retails
store. Super markets earn operating profits of only about 1% on their sales and 10%
on their net worth. It is relatively large, low cost, low margin, high volume, self service
operations designed to serve the consumer’s total need for food, laundry and
households maintenance products Despite of strong competitors from new &
innovative competitors like superstore & discount stores, supermarket are the best.

Q18. What is test marketing?

Ans. Test marketing: is the ultimate way of testing a new consumer product. It helps the
company to sell the product and giving the exposure to the product. In deciding to do
the test marketing, mgt faces several questions like.

1. How many cities to be test.

2. Length of the test?
3. Information regarding value & cost of product?
4. After answering above questions, what action to take.

Q19. What is service marketing?

Ans. Service marketing: As the name suggest marketing of the services provided by the
organization during old time there was no need of services marketing. But now a day
it is very popular concept in services business like courier services, educational
institution, doctors etc. Three Ps involved in service marketing are people, physical
evidence and process.

Q20. What are the types of Service marketing?

Ans. There are three type of marketing in service marketing.

1) Internal marketing: Include work done by the co. to train and motivate its
employee to serve customer well.
2) External marketing: Work done by the company to prepare, price, distribute &
promote the service to customer.
3) Interactive marketing: describe employees’ skill in serving client like technical
and functional quality.

Q21. What is Sales force compensation?

Ans. To attract top quality sales representative, the co. has to develop an attractive
compensation package. Like extra rewards for average performance. In fair
components of its sale force compensation.
1) A fixed amount
2) Variable
3) Expenses allowance
4) Benefits
All these components innovates S.R. to improve sales. That is why this
compensation is called sales force compensation.

Q22. What is Bonded warehouse?

Ans. These warehouse are located near ports. They enable the unloading of commodities
from the ship safety into a place until the owner of the goods takes delivery of them.
Such warehouses are necessary for outward transportation since a manufacturer
cannot wait until a ship reaches at port of loading.

Q23. What is Co-operative marketing?

Ans. Where marketing function like assembling, purchasing, grading, standardizing
financing, risk taking advertising & sale promotion are performed by a cooperative
society for its members who themselves voluntary associate together on the basis of
equality may be called co-operative marketing. The main purposes of such type of
marketing organize is to eliminate the middleman who claim the lion share in their

Q24. What is Cost orientated marketing?

Ans. Marketing cost is taken in to consideration for maintaining it. If no. Cost is taken in to
mind then there is not use of that very marketing. Like if the cost of the product is Rs.
15 and market price is 12 then it is totally irrelevant i.e. marketing should be cost

Q25. What is Stakeholder?

Ans. Traditionally most business paid greatest attention to their stockholder. Today’s
business, however are increasingly recognizing that unless they nourish other
stockholder- customers, employees, suppliers, distributors, stakeholder are satisfied
by company. There is a today dynamic relationship connecting the stockholder
group. Al last we can say stockholder are the parties other than real owner
(Stockholder) like customer employees, supplier, distributors etc.

Q26. What is Strategic Business Unit (SBU)?

Ans. In this one particular single unit of the business can planned separately rather than
the rest of the co. In this business units consider their own set of competitors. In
these units they have own manager who is responsible for strategic planning & profit
performance & who controls most of the factor affecting profit.

Section-C 5 Marks Questions

[Question 1 to 10] Page [28 to 36]
Q1. What is the different type of marketing of channel? What is marketing channel?
Ans. Marketing channels: are set of interdependent organization involved in the process of
making a product or service available for use or consumption.
As we all know most producers work with marketing intermediaries to bring their
product to market. The marketing intermediaries make up a marketing intermediaries
make up a marketing channel. Which are also known as trade as channel or
distribution channel.

Different Channels of Distribution as follows:

Channels are a pipeline for goods from the manufacturer to the consumers. Different
channels may be used for
i) Consumer goods
ii) Agricultural product
iii) Industrial product

A) Channel to distribution for consumer goods

a) Agency: Stands between manufacturer and the wholesaler. In this channel there
are brokers, the manufacturer agent. The commission merchants and the export
merchants. Usually the manufacturer uses this channel when he cannot afford to
invest the amount required to develop a sales force of his town.
b) Wholesaler: Sells goods to the retailer. It is traditional channel. Wholesaler buy
the large quantities from the producer & sells it to a number of retail buyer. He is a
merchant middleman. He tries to sell more than he pays the difference is known as
gross profit. Detect is producer has no link with retainer.
Retailer: Here the manufacturer assumes the function of the brokers and
wholesalers. This requires an efficient sale force. The channel tries to eliminate
wholesaler from the channel of distribution.
c) Direct Selling to customer: This method is most common in industrial marketing
where capital goods are marketed. Direct sale is also undertaken in the case of
agriculture commodities especially in the case of production.

Q2. What are the different steps of channel management decision?

Ans. After the co. has chosen a best channel from various alternative steps should be
taken for channel management decision. There are
1) Selecting channel members
2) Motivating Channel members
3) Evaluciting channel members
4) Modifying channel arrangements

1) Selecting Channel Members: Producers vary in their ability to attract qualified

intermediaries within the chosen channel. Some producer has no trouble-recruiting
intermediaries. In some cases, the promise of exclusive or selective distribution will
draw a sufficient number of applications. Here the question comes that whether the
producer find it easy or difficult to recruit intermediaries, they should at least
determine what characteristics distinguish the better intermediaries

2) Motivating: Channels members: Intermediaries must be continuously motivated to

do their best job. Stimulating channel members to top performance must starts with
understanding to their need & wants. Intermediaries can aim for relationship based
on co-operation, partnership or distribution programming. Most producer see the
main challenges as that of gaining intermediaries cooperation .To do so, they often

use positive motivators such as higher margin, special deal premiums, co-operative
advertising allowances, display allowances & sale contests.

3) Evaluating channel members: The producer must periodically evaluate

intermediaries performance against such standard as sales quota attainments
average inventory level, customer delivery time, treatment of damages and lost
goods & co operation in promotional & training programs, underperformers need to
be counseled, restrained or remotivated.

4) Modifying channel arrangements: A producer must do more than design a good

channel set it into motion. The system will require periodic modification to meet new
conditions in the market place. Modification becomes necessary when the original
distribution channel is not working as planned, consumer buying patterns change, the
market expands, new competition arises, innovation distribution channel emerge &
the product moves into the latter stage & the product move into the later stage in the
product life cycle.

Q3. What are the different steps in managing the sales force?
Ans. Difference steps in managing the sales force are as follows
1) Recruiting and selecting sales representative: First of all selection of effective
sales representative. Select those S.R. which are honest reliable, knowledgeable
and helpful because customer look for these traits in the sales, representative.
2) Training sales Representative: Many companies send their new sales
representative into to field, which makes their selling ineffective. So the S.R.
should be properly brained. Customer expects sale people to have deep
knowledge of product to add ideas to improve the customer operations and to be
efficient and reliable. These demands have required companies to make too
much higher investments in sale training. In training sales representative much be
made aware of following points.
i) Sale representative need to know and identify with the company.
ii) Sales representative need to know the customer and competitors.
iii) Sales representative need to make effective dales presentation.
iv) Sales representative need to know understand filed procedure &
v) Sales representative need to know company's product.
3) Supervising sales representative: Sales representative who are paid mostly on
commission generally receive less supervision. But those who are salaried must
cover definite accounts are likely to receive substantial supervision.
1) Developing norms for customer calls.
2) Developing norms for prospect calls.
3) Using sales time efficiently
4) Motivation sales Representative: Some S.R. will put forth their best effort
without any special coaching from management to them selling is the most
fascinating job in the world. They are ambitious self-starters. But majority
require motivation, encouragement for increasing sales. Churchill, Ford &
Walker, studies this problem. They follow this model

Motivation Effort Performance Reward satisfaction

This model implies the following:

1) Sales manager must be able to convince salespeople that they can sell more by
working border or by being training to work smarter.
2) Sales manager must be able to convince the sale people that the reward for
better performance is worth the extra efforts.

3) For motivation org. can use foll. Strategies

4) Sale quotes
5) Supplementary motivation like sale meeting, sale contests.
6) Evaluating sales representative: Under this we study the management
communicates what the sale representative & be doing. This evaluation can be
done through various sources like what are S.Rs marketing plan etc. Formally we
can evaluate S.R. by customer satisfaction evaluation, qualitative evaluation of
sales representative & current to past sale comparison etc.

Q4. What the different form of promotion mix?

Ans. It includes all the activities the company undertakes to communicate and promote its
product to the target. It has to set up communication & promotion programs
consisting of adverting, sale promotion public relations and direct and online

Different forms of promotion mix include

1) Public Relation and Publicity: This is based on their three distinctive qualities.
a) High credibility
b) Ability to catch buyer off guards
c) Realizations
2) Personal Selling: It is the most cost effective form of it at later stage of the buying
process. It has three distinctive benefits.
a) Personal confrontation
b) Cultivation
c) Response
3) Direct Marketing: Like direct nails, telemarketing, electronic marketing etc. It has
four distinctive characteristics.
a) Non-public: Message normally addressed to a specific person.
b) Customized
c) Up to date
d) Interactive These all the method of promotion mix
These all are the methods of promotion mix.

Q5. Write a short note on Retailing, whole selling and distribution?

Ans. Retailing:
Retailing includes all the activities involved in selling goods and services directly to
final consumers for their personal non business user, Retailer can be classified I
terms of 1) Store Retailing 2) Non store retailing 3) Retail organization

1) Store Retailing: Like departmental stores, customer today can shop for goods &
service in a wide variety.
2) Non-store retailing: Like direct selling, direct marketing, buying services, mail
order shopping, TV shopping.
3) Retail organization: achieve many economics of scale, such as greater
purchasing power, wide brand reorganization, example of these type of shores
are consumer co-operative, franchise.

Whole Selling:
Whole Selling include al the activities involved in selling goods or services to those
who buy for resale or business use. Wholesaling exclude manufacturer and farmers
because they are engaged primarily in produce wholesaler is different from retailer,
whole seller pay less attention to promotion, atmosphere location etc.
Type of whole selling
1) Merchant whole seller
2) Brokers and agent

3) Manufacturer and retailer

4) Branches and offices.
5) Miscellaneous wholesaler

For distribution the goods & services in the market companies have to decide on the
number of intermediaries to use at each channel level
Basically 1) Exclusive Distribution 2) Selective Distribution 3) Intensive Distribution
methods are used like
1) Exclusive distribution: Involves limiting the number of intermediaries handling the
company's goods services.
2) Selective Distribution: Involves the use of more than a few but less than all the
intermediaries who are willing to carry a particular product.
3) Intensive Distribution: The manufacturer places the goods and services in as
many outlets as possible. When the consumer require a great deal of location
convenience, it is important to offer greater intensify of distribution. At last we can
say distribution is channel of delivering goods from product to consumer

Q6. Who is wholesaler? Which functions does he perform?

Wholesaler traders are one who sales to other middlemen, institutions and
individuals usually in fairly large quantities. According to American Management
Association, “wholesalers sell to retailers or other merchants and/or individual,
institutional and commercial users but they do not sell in significant amounts to
ultimate consumers”. Thus, wholesale trade is to do with marketing and selling
merchandise to retailers, to other wholesalers or to individuals-commercial and
professional or other institutional users in contrast to household consumers, to
individuals for personal use or to the farmers.

Wholesaler traders perform a number of functions in the process of marketing
the goods. Of them, the most important ones are:

1. Assembling and Buying: Assembling implies the collection of small lot of

scattered agricultural production for economic bulk buying; it also means
bringing to-gather stocks of different manufactures and placing orders on
them and making special purchases in cases of seasonal products.
2. Warehousing: Warehousing or storing is closely related to the function of
assembling. As there is always a gap between the time periods of production
and consumption, they are to be held and preserved. This involves capital
lock-up plus risks. This warehousing by wholesalers relieves both the
producers and the retailers from the problems of storage.
3. Transporting: In the processes of assembling and warehousing and resale,
wholesalers do undertake transportation of goods from producers to their
warehouses and back to the retailers. What is important is that this
transportation is done on most economic lines, either through their own fleet
or through hired common carriers.
4. Financing: Wholesalers undertake marketing financing. They grant credit on
liberal terms to retailers on one hand and reduce the financial burden of the
manufacturers by taking early delivery of stocks from them. The very fact that
the wholesalers grant credit is as good as reducing the credit quota of
manufacturers to final users.
5. Risk Bearing: Risks are inherent in business, which is to be borne and shifted.
Wholesalers bear the risks of loss of change in prices, of damage,
deterioration in quality, pilferage, theft, fire and the like of goods held in

storage. They also bear risks of non-or under payment by the retailers. Risk
shouldering is the part of his game.
6. Grading, Packing and Packaging: Grading is another function of wholesalers
where by they sort-out the stocks in terms of differing sizes, qualities,
moisture contents and so on. Bulk breaking is done with a view to meet the
small lot requirement of the retailers. In fact, they repack for the consumers
as per the orders of the retailers.
7. Dispersing and Selling: The goods assembled and held in stock are meant for
dispersing and selling. It is the retailers who buy from the wholesalers.
Similarly, wholesalers do have their own sales-army moving to retailers in
collecting order.
8. Providing Market Information: Wholesalers are the vital link between the
retailers and the manufacturers. They provide relevant and up-to-date
information to the retailers affecting their trade interests; so also they
reciprocate the same to manufacturers as to whatever retailers feed them on
changing market conditions useful for the wholesalers.

Q7. What kind of services do the wholesalers provide to related parties?

Ans. Services provided by the wholesalers:
Wholesalers render some valuable service to both the manufacturers and retailers
while performing the above mentioned eight functions. These are:

A. Services to the Manufactures:

1. Economics of Scale: - The wholesalers buy in bulk than in small lots. The bulk
selling for manufacturers brings the benefits of the economics of large-scale
production because, bulk selling supports bulk selling supports bulk
manufacturing on the part of producers.
2. Saving in Time and Trouble: Wholesalers collect orders from large number of
retailers on behalf of the manufacturer and supply them goods in small lots.
This relieves the manufacturer from the wastage of his valuable time, trouble
and treasure. Thus, he can concentrate on the production problems than
3. Regularization of Production Cycle: The wholesalers give the actual and
potential demand conditions being in close contact with the retailers. Further
manufacturers can keep production a continuous activity because the
wholesalers act as the safety value to smoothen the seasonal demand and
regular supply and vice versa.
4. Better Use of Capital: In absence of wholesalers, every producers or
manufacturer would have been forced to maintain huge stocks, which mean
capital lock-up, in addition to the risks of loss. Now he is using those funds in
production because, the wholesalers have taken the task of stock holding.
5. Price Stabilization: In absence of wholesalers, there would have violet price
fluctuation harming the interests of the consumers and the wholesalers. It is
the wholesalers who match seasonal demand and supply and regular
demand and supply. It reduces the vagaries of extremes, which are deadly.

B. Services to the Retailers:

1. Stock Replenishment: By very nature, the retailers are carrying on wide

variety of goods in small lots to meet varied requirements of consumers. He
has neither sufficient space nor finance to do so. It is the wholesalers that
help him to have the stocks without commitment to space and finance.
2. Saving in Cost and Time: Retailers save good deal of time and cost by
placing orders with the wholesalers than the producers or the manufacturers

directly. In fact, a retailer contracts manufacturers at times through a reliable

3. Economy in Transport and Packing: Retailers get their requirements right at
their door-steps at least cost because; wholesalers are the bulk buyers and
the movers. Expenses of packing and packaging would have been much
higher if done on smaller scale. The greatest advantage is that all the
varieties of his choice are available in a single pack or commitment that
4. Better Use of Limited Capital: Retailers replenish stocks as and when they
require with the ready stock held by the wholesalers. In absence of
wholesalers, retailers would have been forced to hold larger stocks of wide
variety of products involving huge capital lock-up and the risk of losses in
various forms. These risks are reduced as he holds a small quantity over a
period. He gets liberal credit too.
5. Expert Knowledge: Wholesaler being specialized in particular lines, have
expert knowledge and experience on changing market conditions. This is
passed on to the retailers on which he can capitalize; wholesaler brings to his
notice new products, undertakes sales-promotion the advantage of which
goes to him in increased sales and profits.

Q8. What are the various types of wholesalers?

Ans. The Types of Wholesalers are:
Wholesalers are mainly of three types namely,
(1) Full function,
(2) Converter and
(3) Drop Shipper.

A ‘full-function’ wholesaler is an intermediary who buys and sells the products on his
own account, assembles products from different sources in bulk, carries stocks, sells
in smaller lots, grants credit and renders valuable counsel and advice. Because of
wide range of functions, he performs and service he renders, he is called as full-line
wholesaler. A ‘converter’ is that full-line wholesaler who buys products and sells them
to the subsequent channel members after processing them. Thus, in cotton textiles,
he may convert gray cloth into bleached and dyed, in corns; he may convert wheat
into wheat flour of pallets. A ‘drop-shipper’ is that wholesaler who neither stores the
products nor delivers them to the buyers from his own stock but books orders and
directs manufacturers to the retailers to those effects. However, he has to take
delivery of goods in case the retailer or the buyer fails to accept the same.

Q9. What are the various types of retailers?

Ans. The Types of Retailers are:

The retailers can be classified in number of ways. However, the most practical and
popular way is that of small scale and large retailers with further sub-classification as

Small Scale Retailers:

1. Unit Stores: - Unit stores are the retail stores run on proprietary basis dealing
in general stores or single line stores such as drugs, clothes grocery items,
hardwires, shoes, books, utensils etc. Single line stores are mostly called as
specialty shops as they may specialize in one line only.
2. Street Traders: Street traders are the retailers who display their stock on
footpaths, or the sidewalks of busy spots of cities and towns. The most

prominent places are bus-stands, railway stations, parks and gardens,

squares and so on. They deal in light goods in demand.
3. Market Traders: These retailers open their shops on fixed days or dates in
specified area. The time interval may be a week or a fortnight or a month.
They do join fairs and arrangements with built-inflexibility.
4. Hawkers and Peddlers: This class of retailers has been there in all the
centers from the time immemorial. They do not have any fixed place of
business. They carry the goods from one place to another on hand cart
selling the goods from door to door. They keep on moving from locality and
business-to-business with the change in the season. Thus ice candy seller
has a brisk business in summer and may change over to corn flakes in rainy
and winder seasons.
5. Cheap-jacks: Cheapjack is a retailer who has fixed place of business in a
locality but goes on changing his place to exploit the market opportunities.
Change of locality is quit common in case of these retailers. These deal in
cheap varieties of readymade garments, plastics shoes and the like.
However, the speed of change of locality is not as fast as that of hawkers and
6. Syndicate Stores: It is an extension of the theory of mail-order business on a
small scale. Syndicate stores are known for widest varieties of goods in a
product line but of known brands. These retailers buy most of the unbranded
varieties and try to sell under their names. These apply to ready made
garments, toys, machinery items and so on.

B Large Scale Retailers

1. Departmental Stores: It is a large retail store dealing in a wide variety of

goods under a single roof. It is essentially an urban retail outlet designed for
mass selling dealing in almost Aspirin to zip, mostly catering to the needs of
higher income groups. It is a central location and unified control. It is known
for orderly arrangement of products in separate departments and it lays
emphasis on consumer’s service. The best examples of this kind in India are:
Ebony stores, Spencer’s, Super bazaar.
2. Multiple Shops: A multiple shop or a chain store is a system of branch shops
operated under a centralized management and dealing in similar lines of
goods. It is chain of retail stores dealing in identical and generally restricted
range of articles separating in different localities under central ownership and
control. It works on the principle of centralized buying and administration and
decentralized selling. The attributes of multiple shops are: cash and carry-
limited lines of articles – items are consumer durables – decentralized selling
in different localities. The examples of this kind are: Bata Shoes, Swastik
Shoes, Flex shoes, Carona Shoes.
3. Mail Order Houses: As the title suggests, the seller contacts the buyer
through some form of advertising. That is the customers do not visit the
seller’s premises nor there is personal inspection of goods before the
purchase. The transaction is settled through postal medium mostly through
V.P.P. or Registered post. That is why; some prefer to call it as selling by
post. As the goods are sent through post parcel, the article must be well-
known, describable, command demand and are durable, in addition to high
value. The examples of this kind are – patent medicines and chemicals,
jewelry, leather goods, ready-made garments and so on. These units are
confined to cosmopolitan areas. Thus, Mail Order Sales limited to Mumbai
deals in ‘Bull-worker’ a fit-kit.
4. Consumer Cooperatives: These are the retailers or stores owned by a group
of consumers themselves on cooperative principles. It is an association of

consumers to obtain their requirements by purchasing in bulk and selling

through the stores to the member and non-member consumers. It believes in
wholesale buying and retail selling at reasonable prices than prevailing in the
open market. Almost all towns and cities in India come across these
consumer cooperatives. The common name chosen is ‘A provided by the
wholesalers Apna Bazar’ or ‘Janta Bazar’ or may be named after a locality
say ‘Bardez Bazar’ in north goa.
5. Fair Price Shops: These are the retail outlets started by the manufacturers in
different cities and towns to sell at prices, which are quite fair. This practice is
very common with every states of the country used as a means for public
distribution. Thus, it can be a private, public or even cooperative sector unit
engaged in retail business to ensure regular equitable and adequate supply of
essential commodities at just or fair prices. These are designed to meet the
requirements of the weaker sections of the society for ration etc.

Q10. What are the different components of physical distribution supply?

Ans. The components of physical distribution supply are:
The components of physical distribution system are order processing inventory
management, materials handling and transportation.

1. Order processing: It includes the activities of receiving, filling and assembling

the orders for shipment.
2. Inventory management: It means and includes the management of products
on the move. It is planning and controlling finished goods after they have
been brought from production centers and before their deliveries to the users.
It has two aspects namely warehousing and inventory controlling.

A Warehousing: It is the act of storing and assorting the finished goods so as to

create maximum time utility at minimum cost. The exact location can be centralized
or decentralized. The plus points of centralized warehousing are:

(i) No need to carry large stock. (ii) Easy meeting of demand fluctuations. (iii)
Improved operating efficiency. (iv) Optimal use of transport facilities.

The minus points are:

(i) Heavy transport cost (ii) Loss of customer service. (iii) Loss of potential market. On
the other hand the plus points in favor of decentralized warehousing are:
On the other hand the plus points in favor of decentralized warehousing are:

(i) Better customer service (ii) Savings in freight (iii) Facilities product movement by
block rates.

The minus points are:

(i) Heavy investment. (ii) High administrative costs.

B Inventory controlling: Inventory control implies holding just stock to minimize costs
and losses. The goals of inventory management are:

1. Providing adequate consumer service and

2. Minimizing firm’s investment in inventory.
3. Material handling: In marketing it signifies the product movement after it gets
out from manufacturing plant but before it is loaded on the transport mode to
the destination of customer. The decision areas of material handling are
material handling methods and selection of methods. The actual selection is

determined by the factors like – the warehouse layout, the nature of product,
the resources, costs of operation and customer service.
4. Transportation: Transportation involves loading and unloading of products
and transshipment between the places of dispatch and places of arrival. The
transport media mix is made up of railways, roadways, airways, waterways
and pipelines.

Railways have the merits such as: (a) large carrying capacity. (b) Economical means.
(c) All weather mode. (d) Containerization. (e) Linking international markets.

The minus points are: (a) Costlier over short distances (b) Slower movement. (c)
Inordinate delays.

Roadways have the plus points like: (a) Economical over short distance (b) Speedier
movement (c) Touching far-flung markets. (d) Lesser conditions of service.
The demerits are: (a) Costly over long distance (b) It is fair weather friend. (c) Not
suitable for bulk transport.

Airways have the merits such as: (a) Fastest means (b) all weather friends (c)
Consumer satisfaction. (d) Reduced inventory holdings.

The demerits are (a) It is costlier means (b) Limited coverage (c) Limited cargo

Waterways have the merits like: (a) it is cheaper means. (b) Most suitable for heavy
and fragile products. (c) Loading and unloading facilities. (d) No. Problem of

The demerits are (a) slow speed. (b) Unreliable (c) Limited service

Pipe-lines have the specific merits such as: (a) Economical. (b) Uninterrupted
service. (c) No danger of wastage. (d) Underground

The demerits are: (a) Initial heavy investment. (b) Danger of enemy attacks.