2018 (November)
COMMERCE
(General)
Course: 504
(Principles of Marketing)
The figures in
the margin indicate full marks for the questions
(NEW COURSE)
Full Marks:
80
Pass Marks: 24
Time: 3 hours
1. (a) Write True or False: 1x4=4
1)
Leader’s opinion does not influence consumer’s
behaviour. False
2)
Selling is a part of marketing. True
3)
The scope of marketing and selling are same. False
4)
Test marketing is the part of new product
development process. True
(b) Fill in the blanks: 1x4=4
1)
Marketing begins and ends with the consumers.
2)
Packaging facilitates product identification.
3)
Market survey and market research are different.
4)
Label helps in avoiding the consumer’s confusion.
2. Write short notes on (any four): 4x4=16
a)
Production positioning: Product positioning is an important element of
marketing plan. It is the process presenting the benefits of the products to
the target audience. In other words, Product positioning is a process of
identifying the needs of market segments, product strength and weaknesses and
the extent to which competing product are perceived to meet the consumer needs.
It is an attempt to project different or refined or revised product image in
the market than one that has been prevailing. It is the delicate task of
relating a product to the market or a market segment. It is that method which
emphasizes the product that proves attractive to the consumers. For instance, a
two-wheeler manufacturer might engineer the product to be safer, more
accommodative, more fuel-efficient than those of competitors.
According to Professor Philip Kotler,
“Positioning is the act of designing the company’s image and value offer so
that the segment’s customers understand and appreciate what the company stands
for in relation to its competitors. “
b) Test
marketing: Test marketing is the stage where the entire product and
marketing programme is tried out for the first time in a small number of well
chosen and authentic sales environments. Test marketing is normally the last
step in the development process before a new product is launched either on
regional or on national level. Test marketing or market testing is simply means
of minimizing the risk of national or regional launch. It confirms the
management’s expectations about the product by testing those variables in the
marketing planning or plan other than the product. Of course, product
modifications might be recommended as a result of test marketing effort; but
this is not the principal reason as to why market testing is undertaken.
Market testing is a managerial control tool
because; a market test can serve as a pilot operation for the large-scale marketing
activity. This is particularly true for marketing new products and new brands.
Further, test marketing is a predictive research tool because, it is employed
in two, broad and dissimilar situations namely:
1)
The introduction of new product or brand and
2)
The evaluation of alternative marketing
variables.
c) Product mix:
Product is one of important part of marketing mix because it reflects the good
or bad reputation of any organization. The products represent any
business efficiently. Successful organizations always search out the
buying habits of their customers and designed their products based on those
buying habits in order to meet the customer’s requirements. They also design
their products based on important factors such as purchasing power and
geographical locations etc. They try to design products which are
affordable for customers. Companies always design their products
according to customer’s budget and affordability.
They do not compromise on their product
quality. Some companies maintain their quality and do not compromise on
price but there are some companies which produce products according to the
affordability of customers. Marketers communicate with their customers directly
and convince them to buy their products.
d) Physical
distribution: Physical distribution is the
process of making the movement of the product to the consumers. It encompasses
all the activities involved in the physical flow of products from producers to
consumers. Physical distribution makes the product available at the right place
and at the right time, thereby maximizing the company’s chance to sell the
product and strengthen its competitive position. The products have to be
carried to places of consumption; they have to be stored; and they have to be
distributed. The product has to be marketed over an extensive marketing
territory. It has to be transported through long distances, stored for a
considerable length of time before being consumed. Physical distribution
largely determines the customer service level. Inefficient physical
distribution leads to loss of customers and markets. There are some products
which are subject to the seasonality factor - either production is continuous
but demand is seasonal, or demand is continuous but production is seasonal. In
all such cases, physical distribution acquires additional importance.
e) Sales
forecasting: Sales forecasting is an estimate of sales in both monetary as well
as in physical terms. A sales forecast is an estimate of sales volume that a
company can expect to attain within a specified future period with the
marketing efforts. A sales forecast is not a prediction but it shows the
probable volume of sales. Sales forecast is affected by many factors such as
economic condition of the market, consumer’s perception, industrial behaviours
etc. sales forecast is very important for a firm because demand and supply for
the products can be easily adjusted with the help of sales forecast. It is a
forward planning and all other requirements of raw materials, labour, plant layout,
financial needs, warehousing and transport facility can be arranged on the
basis of future estimated sales.
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B.Com 5th Principles of Marketing Solved Question Papers (CBCS and NON-CBCS Pattern)
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3. (a) Explain the importance and significance of marketing towards
the society. 7+7=14
Ans: Importance and Uses of
Marketing (Role of Marketing)
Marketing
is a unique function of business which satisfies social values, needs and wants
of an individual. It serves as the springboard for all industrial production.
The importance of marketing can be studied under the following heads:
A. Uses to the Society
(1) Employment of Various Persons: Since
the things are manufactured or produced due to marketing, hence many people get
employment through the production activities. Transport, storage and wholesale
and retail services cover many persons. In this way, it might be said that by
marketing the employment is created.
(2) Availability of Various Products for
Use: Today, the sphere of marketing has become worldwide or international.
Due to it, the products manufactured in the foreign lands too become available
for consumption. All this could become possible due to the growth of the
marketing and its development.
(3) Increase in the National Income of
Country: If the marketing activities are efficiently undertaken and
things are produced in accordance with the needs or requirements of the customers,
there must be some increase in the demand of the things. The production goes up
which leads to the increase in the national income.
(4) Protecting the Economy against the
Evil Effects of Depressions: If the produced goods are not sold, there
shall be piled up the unsold materials with the producers and they will fall
victim to the depression effects. Thus the marketing keeps the economy
safeguarded against the evil effects of the depressions.
(5) Increase in the Standard of Living: By
an efficient system of marketing, there is a fall in the prices of the
products which ultimately leads to the enhancement in the consumption capacity
of the society which ultimately brings reforms and improvement in the standard
of living of the society.
B. Uses to the Producers
(1) Helpful in Earning More Profits:
Whenever any manufacturer produces some commodity, he has to seek the help
of so many people in letting the same reach the hands of the consumers. For
instance, there is the need of the middlemen, the godown owners, the traders,
the owners of transport companies, etc. By establishing proper distribution
channel, more profits can be earned.
(2) Getting Information Regarding Demand. By
the study of marketing, the producers are able to get information regarding
the changing demands.
(3) Reduction in Distribution Costs. By
the wide studies of distribution, it is also known that the products be passed
on to the consumers on the minimum possible costs.
(4) Helpful in Production Planning. The
producer, by studying the marketing, could plan his various policies pertaining
to production.
C. Uses to the Consumers
While purchasing the products, the consumers
must have full knowledge of the things. This can be possible only through
marketing. By the study of marketing, the consumer is able to acquire knowledge
as to how the middlemen resort to their exploitation. For avoiding the
middlemen's exploitation, the consumer co-operative societies are being
promoted and developed.
D. Uses to the Middlemen
By the 'middlemen' is meant those persons who
send the products from the producer to the consumer. The lower are the expenses
of the middlemen, the greater is their profit. By studying the marketing, they
get the knowledge as to how the expenses of distribution be kept lower. Unless
the middlemen possess sufficient knowledge of marketing, they can't become
successful.
E. Uses to the Nation
With the help of marketing, in the
progressive and developing countries too, good managers and entrepreneurs can
be encouraged. For resorting to the most efficient use of the resources available
in the country, marketing of the commodities is very necessary. By the study of
marketing, the economy could be kept safeguarded against the evil effects of
instability. Only due to the marketing, the processes of production and
distribution continue to exist. In it the condition of full employment could be
achieved. Really speaking, marketing occupies an important role in the economic
development.
Or
(b) Discuss about ‘growth and future’ of marketing
in India. 7+7=14
4. (a) What is market segmentation? State the objectives of market
segmentation. 4+10=14
Ans: Ans: Marketing
Segmentation: A market consists of large number of individual customers who
differ in terms of their needs, preferences and buying capacity. Therefore, it
becomes necessary to divide the total market into different segments or
homogeneous customer groups. Such division is called market segmentation. They
may have uniformity in employment patterns, educational qualifications,
economic status, preferences, etc. Market segmentation enables the entrepreneur
to match his marketing efforts to the requirements of the target market.
Instead of wasting his efforts in trying to sell to all types of customers, a
small scale unit can focus its efforts on the segment most appropriate to its
market. It is defined as “The
strategy of dividing the market in order to consume them”.
According to Philip Kotler, “It
is the subdividing of market into homogenous subsets of consumers where any
subset may be selected as a market target to be reached with distinct Marketing
Mix”
According to Philip Kotler, market segmentation means "the act of dividing a market
into distinct groups of buyers who might require separate products and/or
marketing mixes."
According to William J. Stanton, "Market segmentation in the
process of dividing the total heterogeneous market for a good or service into
several segments. Each of which tends to be homogeneous in all significant
aspects."
Basis of Segmentation:
Market
segmentation dividing the Hetrogenous market into homogenous sub-units.
Heterogeneous means mass marketing, which refers people as a people.
Homogeneous means dividing the market into different sub units according to the
tastes and preferences of consumers. The following factors are considered before dividing the market:
1. Geographical Factors: On the basis of geographical factors,
market may be classified as state-wise, region-wise and nation-wise. Many companies operate only in a
particular area because people behave differently in different areas due to
various reasons such as climate, culture, etc.
2. Demographic Factors: This is the most widely used basis for
market segmentation. Market is classified on the basis of population, using
ages, income, sex, etc as indicators.
a)
Age :
It is known fact that
people of different ages like different products, need different things,
and behave differently. Almost all
companies use this factor to reach the target market. On the basis of age,
market in our country is divided into children’s market, teenager’s market,
adult’s market, and the market for old
people. Companies use the census data to prepare marketing strategies on the
basis of age.
b)
Sex: There is a variation of consumption behavior between males and females. This factor is used as a basis for
segmentation for products like watches, clothes, cosmetics, leather goods,
magazines, motor vehicle, etc.
c)
Family Life Cycle: This is another important factor, which
influences the consumer’s behavior. E.g.: Before making purchases, a bachelor
may consult his friends, a boy may ask his parents and a married man asks his wife. The study of
family life cycle helps a company to prepare an effective promotional strategy.
3. Psychological factors: In psychographic segmentation,
elements like personality traits, attitude lifestyle and value system form the base. The strict norms
that consumers follow with respect to good habits or dress codes are
representative examples. E.g.: Mr. Donald’s changed their menu in India to
adopt to consumer preference. The market for Wrist Watches provides example of
segmentation. Titan watches have a wide range of sub brands such as Raga, fast
track, edge etc. or instant noodle markers, fast to cook food brands such as
Maggi, Top Ramen or Femina, women’s magazine is targeted for modern women.
4. Economic Factors: On the basis of economic factors, markets
have been classified in the westerns countries as follows:
a. Upper Class b. Upper-upper class c. Lower-upper class
d. Middle class e. Upper-middle class f. Lower-middle class
g. Lower class h. Upper-lower class i. Lower-lower class
In our country, it is classified as upper
class (rich), middle class, and the
lower class. Another classification based on income in our country is as
follows:
a. Very Rich b.
The Rich class c. The
Aspiration Class and
d. The Destitute.
5. Behavior Factors: This is one of the most important bases
used for market segmentation. Market is classified on the basis of attitude of consumers
and special occasions.
a)
Occasions: Sellers can easily find out certain
occasions when people buy a particular product. E.g.: Demand for clothes,
greeting cards, etc increases during the festival season. Demand for
transportation, hotels etc increases during the holiday seasons.
b)
Benefits: Each consumer expects to fulfill certain desire or to derive some
benefits from the product he purchases. E.g.: A person may purchase clothes to
save money and another to impress
others. Based upon this, markets may be classified as markets for cheap price
products and market for quality products
etc.
c)
Attitude: On the basis of attitude of consumers, markets may be classified as
enthusiastic market, indifferent market, positive market, and negative market.
Objectives of Market
Segmentation
a)
To identify the need,
taste and buying motive of the target consumers
b)
Grouping of
customers on the basis of their common characteristics such as behaviour,
income, age, geography etc.
c)
To introduce
product according to the needs of the consumers.
d)
To make Consumer
oriented approach for the firm
e)
To introduce
suitable marketing mix.
f)
To define marketing
strategies, targets and goals of the firm.
Or
(b) What is consumer behaviour? Discuss the sociological factors
affecting the consumer behaviour. 4+10=14
Ans: Consumer Behaviour: Behaviour
is a mirror in which everyone shows his or her image. Behaviour is the process
of responding to a thing or event. Consumer behavior is to do with the
activities of individual in obtaining and using the good and services. The term consumer behaviour
is defined as the behaviour that consumer display in searching for, purchasing
using, evaluating and disposing of products and services that they expect will
satisfy their needs.
In the words of Kotler, ”Consumer
behaviour is the study
of how people buy, what they
buy, when they buy and why they buy.”
In the words of Solomon,”
Consumer behaviour is the study of the processes involved when individuals
or groups select, purchase, use, or dispose of products, services, ideas, or
experiences to satisfy needs and desires”
In the words of Professor Bearden and
Associates, ”Consumer behaviour is the mental and emotional process and the
physical activities of people who purchase and use goods and services to
satisfy needs and wants.”
Factors that influence consumer behaviour
The buyer has a selective perception and is exposed to a variety of products and information. He may ignore certain piece of
information whereas actually seek out some other information whereas actively
seek out some other information Therefore, marketers must fully understand both
the theory and reality of consumer
behaviour. A consumer’s buying behaviour is influenced by cultural, social
and personal factors and they are a part of the buyer as an
individual.
(1) Cultural Factors : Culture is the fundamental
determination of a person’s wants and
behaviour. The growing child acquires a set of values perceptions,
Preferences and Behaviours through his
or her family. Each culture consists of various subcultures that provide more
specific identification. It includes nationalities, religions, social groups and geographic regions.
Every culture dictates its
own unique patterns of social conduct. Within each religion there may be
several sects and sub sects, there may
be orthodox group and cosmopolitan
groups. The do’s and don’ts listed out
by religion and culture impacts the
individual’s lifestyle and buying
behaviour.
(2) Social Factors: Consumer’s behaviour is
influenced by social factors such as reference groups, family, social roles
and status. The buyer is living in a
society, is influenced and There is a constant
interaction between the individual and
the groups to which he belongs. All these interactions affect him in his
day to day life.
a. Reference Groups: A person’s reference groups
consist of all the groups that have a direct or indirect influence on his
attitude. They can be family friends, neighbours, co-worker, religious,
professional and trade union groups.
Reference groups expose an individual to new behaviours and lifestyles and influence attitude and self concept. Brands like Levi, Prologue
and Planet M used teenage icon as brand
Ambassadors for in store promotions.
b. Family: The family is the most important buying
organization in society. From parents a person acquires an orientation toward
religion politics and a sense of
personal ambition, self worth and love.
E.g. In traditional joint families, the influence of grandparents on major
purchase decisions affect the lifestyles of younger generations. In urban India
with the growth of nuclear families and
both husband and wife working the role of women in major family
decisions is prominent. Children and
teenagers are being targeted by companies using the internet as an
interactive device.
c. Role and Status: The
person’s position in each group can be defined in terms of role and status. A role consist of all activities that
a person is expected to perform. Each role carries a status. A Vice President
of marketing has more status than a sales manager and a sales manager has more status than an
office clerk and people choose those
products that reflect and communicate
their role and desired status in
society.
(3) Personal Factors: The personal factors include
the buyer’s age and stage in the life
cycle, occupation and economic position,
personality and self concept and lifestyle and
values.
a. Age and Stage in the
Life Cycle: People buy different products like food, cloths
furniture and this is often age related.
Trends like delayed marriages, children migrating to distant cities, tendency
of professionals has resulted in different opportunities for marketers at
different stages in consumer life cycle.
b. Occupation and
Economic Position: Occupation also influences buyer’s
behaviour. A blue collar worker will buy work clothes, work shoes and lunch boxes; a company president will buy
dress suits, air travel and club
memberships. Marketers try to identify the occupational groups and then make products according to their needs
and demands. Product choice is greatly
affected by economic circumstances – spendable income, savings and assets and
attitude towards spending and
savings.
c. Personality and Self
Concept: Each person has personality characteristics that influence
his / her buying behaviour. Personality means a set of distinguishing
psychological traits that has to response to environmental stimuli. Personality
can be a useful variable in analyzing consumer brand choice. The idea is that
brands also have personalities and
consumers like to choose those brands which suits or match their
personality.
5. (a) What do you mean by packaging? Discuss the various importance
and functions of packaging. 4+10=14
Ans: Price and
Pricing
Price is
defined as the amount we pay for goods or a service or an idea. Price is the
only element in the marketing mix of a firm that generates revenue. All other
elements generates only cost. Price is a matter of importance to both seller
and buyer in the market place. Only when
a buyer and a seller agree on price, we
can have exchange of goods and services leading to transfer of ownership.
The term ―
Price need not be confused with the term ― Pricing. Price is the value that is
put to a product or service and is the result of a complex set of calculations,
research and understanding and risk taking ability. But pricing is different
from price. It refers to decisions related to fixing of price of a commodity. A
pricing strategy takes into account segments, ability to pay, market
conditions, competitor actions, trade margins and input costs, amongst others.
It is targeted at the defined customers and against competitors.
Objectives and Importance of Pricing (Role):
Objectives
of Pricing:
A
business firm will have a number of objectives in the area of pricing. These
objectives can be short term or long term or primary objectives:-
(i)
Profit maximization in the short term.
(ii)
Profit optimization in the long term.
(iii) A
minimum return on investment
(iv) A
minimum return on sales turnover.
(v)
Achieving a particular sales volume.
(vi)
Achieving a particular market share.
(vii)
Deeper penetration of the market.
(viii)
Entering new markets.
(ix)
Target project on the entire product line.
(x)
Keeping competition out, or keeping it under check.
(xi)
Keeping parity with competition.
(xii)
Fast turnaround and early cash recovery.
(xiii)
Stabilizing price and margins in the
market.
(xiv)
Providing the commodities at prices affordable by weaker section.
(xv)
Providing the commodities at prices that will stimulate economic development.
Importance
of Pricing:
Importance
of pricing is spelled out by the following points.
1. Price is the pivot for an economy: Price is the prime mover of the wheels of
the economy namely, production, consumption, distribution and exchange price influences consumer purchase
decision. It reflects purchasing power of currency. It can determine the
general living standards of people. In essence, by and large every facet of our
economy life is directly or indirectly governed by pricing.
2. Price Regulates Demand: Price increase or decrease the demand for
the product de- marketing strategy can be easily implemented to meet the rising
demand for goods and service.
3. Price is the competitive weapon: The
marketers have to perform in a highly competitive environment. Price is a very
important instrument to fight competition. It is the competition that
contributes maximum to the importance of pricing. Pricing is a highly dynamic
function. Because of the immense competition and in meeting competition,
pricing decisions acquire their real importance.
4. Price is the Determinants of profitability: Price determines the profitability of
firm by influencing the sales revenue. Low price is not always necessary to
increase profit. A right price can increase the sales volume and there by
profit. The impact of price rise of fall is reflected instantly in the rise or
fall of the product profitability.
5. Price is a Decision Input: Pricing is highly risky decision area
and mistakes in pricing might reasonably
affect the firm, its profits, growth and future.
Or
(b) What is trademark? Distinguish between trademark and branding. 4+10=14
Ans: Trade Mark
In General, a trade mark is defined as any
sign, as any combination of sign, inherently capable of distinguish the goods
or service of one undertaking. Trade marks may be a combination of words, letters,
and numerals. They may consist of drawings, symbols, colours used as
distinguish features. The owner of the mark may not be involved in the relevant
trade and acts purely as a certification authority. The internationally
accepted ―ISO 9000 quantity standards are examples of such widely recognized
certifications.
Brand
Name
A brand is define as a name, term, sign,
symbol or special design or some combinations of these elements that is
intended to identify the goods or services of one seller or a group of sellers.
A brand differentiates these products from those of competitors. A brand in
short is an identifier of the seller or the maker. A brand name consists of
words, letters and / or numbers that can be vocalized. A brand mark is the
visual representation of the brand like a symbol, design, distinctive colouring
or lettering.
In the opinion of American Marketing
Association, Brand is a name,
position, symbol or design or their combination by which the products
and services of a seller or different sellers are recognized and are differentiated from the
products and services of competition.
In the views of Lapland, The
'brand' can be defined as any indication,
symbol, letter or letters which indicate the origin or the ownership
of any product and differentiate the product from its variety,
and don't grant the same right to others for using them for the
similar object.
Distinction
between Brand and Trade-Mark
The following are the distinctions between
the brand and trade-mark:
a) Registration. Brand is merely a
word, symbol or a design. If it is got registered under law, it becomes a
trade-mark. But the brand is not required to be legally registered.
b) Action against Imitating. If the
brand has been copied out by some other concern competing the business, no
legal proceedings against it could be undertaken for the same. As against it,
if someone imitates the `trade-mark', the body might be legally sued for.
c) Scope. The scope for brand is
limited while the trademark is quite extensive in its sphere.
d) Use or Utilization. When the brand
has been got registered, it becomes the trade-mark and its use could be
permissible to the same body or undertaking only. Against it, one and the same
brand might be used by various manufacturers, producers or sellers.
e) All the Brands are not the Trade-Marks. All
the trade-marks have to be brands, but all the brands are not the trade-marks.
6. (a) What is promotion? Explain the various importance of promotion.
4+10=14
Ans: Promotion is an important part of marketing mix
of a business enterprise. Once a product is developed, its price is determined
the next problem comes to its sale i.e., creating demand for the product. It
requires promotional activities. The activities are technique which bring the
special characteristics of the product and of the producer to the knowledge of
prospective customers. Promotion is a process of communication involving
information, persuasion, and influence. The term ‘selling’ is often used
synonymously with promotion. But promotion is wider that selling. Selling is
concerned only with the transfer of title in goods to the purchaser, whereas
promotion includes techniques stimulating demand. These techniques include
advertising, salesmanship or personal selling and other methods of stimulation
demand.
Role of Promotion mix:
a) To
provide Information to the consumers: Informative promotion can convert an
existing need into a want or to stimulate interest in a new product. People
generally do not buy a product or service unless and until they know its
purpose and its benefits to them. Informative messages are significant in
promoting complex and technical products like automobiles, computers and
investment services. It is also important for a “new” brand being introduced
into an “old” product class. In a nutshell, informative promotion helps in
Increasing the awareness of a new brand, product class, or product attribute.
b) To
persuade consumers to purchase: Persuasive promotion is designed to
stimulate to purchase or an action. Persuasion generally becomes the main
promotion goals when the product enters the growth stage of its life-cycle. The
persuasive promotion aims at:
(1) Encouraging brand switching;
(2) Changing customers’ perception of product
attributes;
(3) Influencing customers to buy now and
(4) Persuading customers to call.
c) To remind
about the existing brand: Reminder promotion is used to keep the product
and brand name in the audience’s mind. Reminder promotion is very active during
the maturity stage of product life-cycle. It assumes that the target market has
already been persuaded of the good’s or service’s merits. Reminder promotion
aims at:
(1) Reminding consumers that the product may
be needed in the near future;
(2) Reminding the consumers where to buy the
product and
(3) Maintaining consumer awareness.
Or
(b) Discuss the
environmental factors affecting the selection of channel of distribution. 14
Ans: Factors Affecting the Selection
of the Channel of Distribution
Every producer, in order to pass on the
product to the consumer, is required to select a channel for distribution. The
selection of the suitable channel of distribution is one of the important
factors of the distribution decisions. The following factors affect the
selection of the channel of distribution:
A. Factors Pertaining to the Product: Keeping
in view the nature, qualities and peculiarities of the product, could only the
channel for distribution be properly made. The following factors concerning the
product, affect the selection of the channel of distribution:
(1) Price of the Product: The products of a lower price
have a long chain of distributors. As against it, the products having higher
price have a smaller chain. Very often, the producer himself has to sell the
products to the consumers directly.
(2) Perishability: The products which are of a
perishable nature need lesser number of the intermediaries or agents for their
sale. Under this very rule, most of the eatables (food items), and the bakery
items are distributed only by the retail sellers.
(3) Size and Weight: The size and weight of the
products too affect the selection of the middlemen. Generally, heavy industrial
goods are distributed by the producers themselves to the industrial consumers.
(4) Technical Nature: Some
products are of the nature that prior to their selling, the consumer is
required to be given proper instructions with regard to its consumption. In
such a case less of the middlemen arc) required to be used.
(5) Goods Made to Order: The products that are
manufactured as per the orders of the customers could be sold directly and the
standardized items could be sold off only by the middlemen.
(6) After-Sales Service: The products regarding which
the after-sales service is to be provided could be sold off either personally
or through the authorized agents.
B. Factors pertaining to the Consumer or Market:
The following are the main elements concerned with the consumer or the
market:
(1) Number of Customers: If
the number of customers is large, definitely the services of the middlemen will
have to be sought for. As against it, the products whose customers are less in
number are distributed by the manufacturer himself.
(2) Expansion of the Consumers: The span over which are the
customers of any commodity spread over, also affects the selection of the
channel of distribution. When the consumers are spread through a small or
limited sphere, the product is distributed by the producer himself or his
agent. As against it, the goods whose distributors are spread throughout the
whole country, for such distributors, services of wholesalers and the retailer
are sought.
(3) Size of the Order: When bulk supply orders are
received from the consumers, the producer himself takes up the responsibility
for the supply of these goods. If the orders are received piece-meal or in
smaller quantities, for it the services of the wholesalers could be sought. In
this way, the size of the order also influences the selection of the channel of
the distribution.
(4) Objective of Purchase: If the product is being
purchased for the industrial use; its direct sale is proper or justified. As
against it, if the products are being purchased for the general consumption,
the products reach the consumers after passing innumerable hands.
(5) Need of the Credit Facilities: If, for the sale of any
product, it becomes necessary to grant credit to any customer, it shall be
helpful for the producer that for its distribution, the services of the
wholesalers and retailer businessmen be sought. In this way, the need of the
credit facilities too influences the selection of the channel of distribution.
C. Factors Pertaining to the Middlemen: The following are the main factors
concerned with the middlemen:
(1) Services Provided by Middlemen: The selection of the middlemen
is made keeping in view their services. If some product is quite new and there
is the need of its publicity and promotion of sales, then instead of adopting
the agency system, the work must be entrusted to the representatives.
(2) Scope or Possibilities of Quantity of Sales: The same channel should be
selected by means of which there is the possibility of more sales.
(3) Attitude of Agents towards the Producers'
Policies: The
producers generally prefer to select such middlemen who go by their policies.
Very often when the distribution and supply policies of the producers being
disliked by the middlemen, the selection of middlemen becomes quite limited.
(4) Cost of Channel of Distribution: While selecting the channel of
distribution, the cost of distribution and the services provided by the
middlemen or agents too must be kept into consideration. The producers
generally select the most economical channel.
D. Factors Pertaining to the Producer Or
Company: The following factors, concerning the producer, affect the
selection of the channel of distribution:
(1) Level of Production: The manufacturers who are
financially sound and are of a larger category, are able to appoint the sales
representatives in a larger number and thug could distribute the commodities
(products) in larger quantities. As against it, for the smaller manufacturers,
it becomes necessary to procure the services of the wholesalers and the retail
traders.
(2) Financial Resources of the Company: From the financial point of
view, the stronger company needs less middlemen.
(3) Managerial Competence and Experience: If some producer lacks in the
necessary managerial experience or proficiency, he will depend more upon the
middlemen. The new manufacturers in the beginning remain more dependent upon
the middlemen.
E. Other Factors
(1) Distribution Channel of Competitors: While determining the channel
of distribution, the channels of distribution of the competitors too must be
borne in mind.
(2) Social Viewpoint: What is the attitude of society
towards the distribution, this fact too must be kept into consideration while
selecting the middlemen.
(3) Freedom
of Altering: While
selecting the agents, this fact too must be kept into mind that in case of
need, there must be the liberty of changing or replacing the agents
(middlemen).
(OLD
COURSE)
Full
Marks: 80
Pass
Marks: 32
Time:
3 hours
1. (a) Write True or False: 1x5=5
1)
Consumer’s behaviour has no difference with
buyer’s behaviour. False
2)
Marketing and selling denote same meaning. False
3)
Product differentiation and market segmentation
are same. False
4)
All publicity is advertising. False
5)
Cost analysis is a major part of business
analysis. True
(b) Fill in the blanks: 1x3=3
1)
Customer’s buying process has five steps.
2)
Order
processing is one of the components of physical distribution mix.
3)
The channel of distribution is major variable of
place mix.
2. Write short notes on (any four): 4x4=16
a)
Market segmentation.
b)
Buying motive.
c)
Wholesaler.
d)
Marketing environment.
e)
Product branding.
3. (a) What do you understand by marketing? Explain the
functions of marketing. 3+8=11
Or
(b) What is meant by marketing concept?
Describe the evolution of marketing concept. 3+8=11
4. (a) Explain the nature of consumer’s behaviour and discuss
the importance of studying it. 3+8=11
Or
(b) Assess the benefits of market
segmentation and explain different bases of it. 6+5=11
5. (a) Explain the concept of product life cycle and discuss
in brief about the management of different stages of it. 4+7=11
Or
(b) (1) Explain briefly the importance of
branding. 5
(2) Discuss the essential features of good
packaging. 6
6. (a) Discuss the importance of price as a part of marketing
mix. Also discuss the pricing strategies for new product. 5+6=11
Or
(b) What is communication? Discuss the
various components of communication. 3+8=11
7. (a) Describe the role of physical distribution in marketing
and discuss its various components. 6+6=12
Or
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