2017 (COMMERCE)
(General) Course: 504
(New course)
(Principles of Marketing)
Full marks: 80 ;Pass marks: 24
Time: 3 hours
1. (a) Write True or False: 1x4=4
a) Marketing
is getting and keeping the customer. True
b) Motivation
is an economic determinant of consumer’s behaviours. False
c) Cost
analysis is a major part of business analysis. True
d) Sales
promotion and advertising are same. False
(b) Fill
in the blanks: 1x4=4
a) The
channel of distribution is major variable of place mix.
b) The
product sales are lowest and move up very slowly at snail’s pace in introduction stage.
c) Encoding Involves
putting thought ideas or information into a symbolic form.
d) Pipelines are the
specialized means of transportation designed to move the liquid items or gas.
2. Write short notes on: 4x4=16
a) Marketing
mix: Marketing mix refers to one of the major concept in modern marketing.
According to Philip kotler “marketing mix is a set of controllable marketing
variables that the firm blends to produce the response it wants in the target
market”. It is the combination of four controllable variables which constitutes
the company’s marketing system .the four controllable variables are:
1)
The product
2)
The price structure
3)
The promotional activities
4)
The distribution system
These elements are inter
related and inter dependent since decisions in one area usually actions in
other area.
Features
of marketing mix:
1) Combination of four controllable
variables: Marketing mix is the combination of four variables inputs namely
product, price, promotion and place that constitute the core of organizations
marketing system
2) Inter relation of variables: The four P’s
of marketing mix are interrelated and independent as the decision of one area
automatically depends upon the other.
3) Managerial activity: Marketing mix is a
managerial activity i.e. it is the responsibility of the marketing manager to
combine the four ingredients in the right proportion as to achieve optimum
results.
4) Dynamic concept: Marketing mix is a dynamic
concept as there is need of continuous changes as per the changes taking place
in the marketing environment.
5) Consumer orientation: All marketing
activities are directed towards consumer satisfaction therefore marketing mix
variables need to be flexible to adopt the needs expectation, purchasing power
and buying behavior of the consumer.
b) Market
segmentation: A market
consists of large number of individual customers who differ in terms of their
needs, preferences and buying capacity. Therefore, it becomes necessary to
divide the total market into different segments or homogeneous customer groups.
Such division is called market segmentation. They may have uniformity in
employment patterns, educational qualifications, economic status, preferences,
etc. Market segmentation enables the entrepreneur to match his marketing
efforts to the requirements of the target market. Instead of wasting his
efforts in trying to sell to all types of customers, a small scale unit can
focus its efforts on the segment most appropriate to its market. It is defined as “The strategy of dividing
the market in order to consume them”.
According to Philip Kotler, “It
is the subdividing of market into homogenous subsets of consumers where any
subset may be selected as a market target to be reached with distinct Marketing
Mix”
According to Philip Kotler, market segmentation means "the act of dividing a market into distinct groups of buyers who might
require separate products and/or marketing mixes."
According to William J. Stanton, "Market segmentation in the process of dividing the total heterogeneous
market for a good or service into several segments. Each of which tends to be
homogeneous in all significant aspects."
c) After sale service: Customers are the assets of every business.
Sales professionals must try their level best to satisfy customers for them to
come back again to their organization. After sales service refers to various
processes which make sure customers are satisfied with the products and
services of the organization. The needs and demands of the customers must be
fulfilled for them to spread a positive word of mouth. In the current scenario,
positive word of mouth plays an important role in promoting brands and
products.
After sales service makes sure that products
and services meet or surpass the expectations of the customers. After sales
service includes various activities to find out whether the customer is happy
with the products or not? After sales service is a crucial aspect of sales
management and must not be ignored.
Importance
of after sale service
After sales service plays an important role
in customer satisfaction and customer retention. It generates loyal
customers. Customers start believing in the brand and get associated with the
organization for a longer duration. They speak well about the organization and
its products. A satisfied and happy customer brings more individuals and
eventually more revenues for the organization. After sales service plays a
pivotal role in strengthening the bond between the organization and
customers.
d) Warehouse:
It
is a place for the storage and preservation of goods in proper condition. It is
an establishment for the accumulation of goods for future use. It implies
holding or preservation of goods from time of their production or purchase
until their consumption or sale. The warehousing service plays an important
role in supply and distribution of goods after their manufacture.
Need and importance of warehouses:
a)
To store excess production in anticipation of
demand
b)
To store goods those are produced
seasonally
c)
To store goods those have seasonal demand
d)
Stability in prices
e)
Storage of raw materials
f)
Basis of Trade
g)
Processing, curing and packaging of goods.
Types of
warehouses: (1) Government warehouses (2) Private warehouses (3) Public warehouses (4) Cooperative warehouse (5) Bonded warehouse (6) Excise Bonded
warehouse (7) Custom Bonded warehouse
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B.Com 5th Principles of Marketing Solved Question Papers (CBCS and NON-CBCS Pattern)
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3. (a) Compare Marketing with
Selling. Discuss the objectives of marketing.
7+7=14
Ans: Difference between selling & marketing
concept
|
S.N.
|
Selling
|
Marketing
|
|
1.
|
Selling starts and ends with the
seller.
|
Marketing starts and ends with
the consumers.
|
|
2.
|
Seeks to quickly convert products
into cash.
|
Seeks to convert customer ‘needs’
into products
|
|
3.
|
Seller is the centre of business
universe.
|
Buyer is the centre of the
business universe
|
|
4.
|
Views Business as a goods
producing process.
|
Views businesses as a customer
satisfying process.
|
|
5.
|
Seller preference determines the
formulation of marketing mix.
|
Buyer determines the shape
marketing mix should take.
|
|
6.
|
Selling is product oriented.
|
Marketing is customer oriented.
|
|
7.
|
Seller’s motives dominate
marketing communication.
|
Marketing communication is looked
upon as a tool for communicating the benefits / satisfactions provided by the
product.
|
Objectives
of Marketing
The major objectives of marketing are as
follows:
1. To
satisfy the customers: The marketing manager must scientifically study the
demands of customers before offering them any goods or services. Selling the
goods or services is not that important, as the satisfaction of the customer’s
needs. Modern marketing thus always begins and ends with the needs of
customers.
2. To
increase profits for the growth of the business: The marketing department is
the only department which generates revenue for the business. Sufficient
profits must be earned as a result of sale of want-satisfying products. If the
firm is not earning profits, it will not be able to survive in the market.
Moreover, profits are also needed for the growth and diversification of the
firm.
3. To
generate customer base for the business: The Marketing manager must attract
more and more customers to buy the firm’s products and services. This will also
result into increased sales.
4. To
determine marketing-mix that will satisfy the needs of the customers: Product,
pricing, promotion and physical distribution should be so planned as to meet
the requirements of different kinds of customers.
5. To
increase the quality of life of people: Marketing Management attempts to
increase the quality of life of the people by providing them better products at
reasonable prices. It facilitates production and distribution of a wide variety
of goods and services for use by the customer.
6. To
create good image: To build up the public image of firm over a period is
another objective of marketing. The marketing department provides quality
products to customers at reasonable prices and thus creates its impact on the
customers. The marketing manager attempts to increase the goodwill of its
business by initiating image building activities. If a firm enjoys goodwill in
a market, it will increase the morale of its sales-force. They will show
greater loyalty and will develop a sense of service to the customers. This will
further enhance the reputation of the business.
OR
(b) What is marketing
environment? Discuss about the controllable forces of business environment.
4+10=14
Ans: MARKETING ENVIRONMENT
A
variety of environmental forces influence a company’s marketing system. Some of
them are controllable while some others are uncontrollable. It is the
responsibility of the marketing manager to change the company’s policies along
with the changing environment.
According
to Philip Kotler, “A company’s marketing environment consists of the internal
factors and forces, which affect the company’s ability to develop and maintain
successful transactions and relationships with the company’s target customers”.
The
Environmental Factors may be classified as:
1.
Internal
Factor
2.
External
Factor
External
Factors may be further classified into:
a) External Micro Factors and
b) External Macro Factors
1. Internal Environmental Factors: A Company’s marketing system is influenced
by its capabilities regarding production, financial and other factors. Hence,
the marketing management/manager must take into consideration these departments
before finalizing marketing decisions. The Research and Development Department,
the Personnel Department, the Accounting Department also has an impact on the
Marketing Department. It is the responsibility of a manager to company-ordinate
all department by setting up unified objectives.
2. (a) External Micro Factors: Some of the important external micro factors
are:
1.
Suppliers: They are the people who provide necessary resources needed to produce
goods and services. Policies of the suppliers have a significant influence over
the marketing manager’s decisions because, it is laborers, etc. A company must
build cordial and long-term relationship with suppliers.
2.
Marketing Intermediaries: They are the people who assist the flow of
products from the producers to the consumers; they include wholesalers,
retailers, agents, etc. These people create place and time utility. A company
must select an effective chain of middlemen, so as to make the goods reach the
market in time. The middlemen give necessary information to the manufacturers
about the market. If a company does not satisfy the middlemen, they neglect its
products and may push the competitor’s product.
3.
Consumers: The main aim of production is to meet the demands of the consumers.
Hence, the consumers are the center point of all marketing activities. If they
are not taken into consideration, before taking the decisions, the company is
bound to fail in achieving its objectives. A company’s marketing strategy is
influenced by its target consumer. E.g. If a manufacturer wants to sell to the
wholesaler, he may directly sell to them, if he wants to sell to another
manufacturer, he may sell through his agent or if he wants to sell to ultimate
consumer he may sell through wholesalers or retailers. Hence each type of
consumer has a unique feature, which influences a company’s marketing decision.
4.
Competitors: A prudent marketing manager has to be in
constant touch regarding the information relating to the competitor’s strategies.
He has to identify his competitor’s strategies, build his plans to overtake
them in the market to attract competitor’s consumers towards his products. Any
company faces three types of competition:
a)
Brand
Competition: It is a competition between various companies producing similar
products. E.g.: The competition between BPL
and Videocon companies.
b)
The
Product Form Competition: It is a competition between companies manufacturing
products, which are substitutes to each other E.g.: Competition between coffee
and Tea.
c)
The
Desire Competition: It is the competition with all other companies to attract
consumers towards the company. E.g.: The competition between the manufacturers
of TV sets and all other companies manufacturing various products like
automobiles, washing machines, etc.
Hence, to understand the competitive situation, a company must
understand the nature of market and the nature of customers. Nature of the
market may be as follows:
I.
Perfect
Market
II.
Oligopoly
III.
Monopoly
IV.
Monopolistic
Market
V.
Duopoly
5.
Public: A Company’s obligation is not only to meet the requirements of its
customers, but also to satisfy the various groups. A public is defined as “any
group that has an actual or potential ability to achieve its objectives”. The
significance of the influence of the public on the company can be understood by
the fact that almost all companies maintain a public relation department. A
positive interaction with the public increases its goodwill irrespective of the
nature of the public. A company has to maintain cordial relation with all
groups, public may or may not be interested in the company, but the company
must be interested in the views of the public.
Public may be various types. They are:
a.
Press:
This is one of the most important groups, which may make or break a company. It
includes journalists, radio, television, etc. Press people are often referred
to as unwelcome public. A marketing manager must always strive to get a
positive coverage from the press people.
b.
Financial
Public: These are the institutions, which supply money to the company. E.g.:
Banks, insurance companies, stock exchange, etc. A company cannot work without
the assistance of these institutions. It has to give necessary information to
these public whenever demanded to ensure that timely finance is supplied.
c.
Government:
Politicians often interfere in the business for the welfare of the society and
for other reasons. A prudent manager has to maintain good relation with all
politicians irrespective of their party affiliations. If any law is to be passed,
which is against the interest of the company, he may get their support to stop
that law from being passed in the parliament or legislature.
d.
General
Public: This includes organisations such as consumer councils,
environmentalists, etc. as the present day concept of marketing deals with
social welfare; a company must satisfy these groups to be successful.
4. (a) Discuss the various steps
of buying process. Critically analyze psychological determinants of consumer’s
behaviours. 7+7=14
Ans: Steps in buying decision process
The marketing scholars have developed a “stage
model” of the buying process. The consumer passes through 5 stages. But
consumers do not always pass through all five stages in buying a product. They
may skip some stages.
(1) Problem Recognition: The buying process
starts when the buyer recognizes a problem or need. The need can be triggered
by internal or external stimulus. With an internal stimulus, one of the
person’s normal needs hunger thirst etc. become a drive or a need can be aroused
by external stimuli. Marketers need to identify the circumstances that trigger
a particular need by gathering information from a number of consumers.
(2) Information Search: An aroused consumer
will be inclined to search for more information. A person at times simply
becomes receptive to information about a product or he may enter looking for a
reading material, phoning friends, going online etc. Through gathering
information, the consumer learns about competing brands and other features.
(3) Evaluation of Alternatives: The
information search and comprehension
(evaluation) stages represent the information processing stage. These 2 stages
constitute the cognitive field of the purchase process. Cognition refers to acquisition
of knowledge.
Some basic concepts help us in understanding
consumer evaluation: first the consumer is trying to satisfy a need, second the
consumer is looking for certain benefits and
third the consumer views each product as a bundle of attributes to
satisfy this need.
(4) Purchase Decision: The buyer must be
convinced that the purchase of the product is the legitimate course of action.
This stage stands as a barrier between a favourable attitude towards the
product and actual purchase. Only if the
buyer is convinced about the correctness of the purchase decision, will be
proceed. At this stage, he may seek further information regarding the product
or attempt to assess the information already available.
(5) Post Purchase Behaviour: The purchase
leads to specific post purchase behaviour, usually it creates some restlessness
in the mind of the individual. He is not sure about the product. He may feel
that the other brand would have been better. It can be defined in terms of
satisfaction. If the performance of the product falls short of expectations,
the consumers is disappointed, if it meets expectations, the consumer is
satisfied, it is exceeds expectations, the consumer is delighted. These
feelings make a difference in whether the customer buys the product again and talks favourably or unfavorably about it to
others.
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.
Pshycological/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.
OR
(b) Describe the benefits of
market segmentation. What are the factors bring success in market segmentation?
7+7=14
Ans: Advantages / Importance /
Significance of Market Segmentation:
The
purpose of segmentation is to determine the differences among the purchases
which may affect the choice of the market area and marketing strategies.
Following are some of the benefits of marketing segmentation.
1. Facilitates
consumer-oriented marketing:
Market segmentation facilitates formation of marketing-mix which is more
specific and useful for achieving marketing objectives. Segment-wise approach
is better and effective as compared to integrated approach for the whole
market.
2. Facilitates
introduction of suitable marketing mix: Market segmentation enables a producer to understand the needs of
consumers, their behavior and expectations as information is collected
segment-wise in an accurate manner. Such information is purposefully usable.
Decisions regarding Four Ps based on such information are always effective and
beneficial to consumers and the producers.
3. Facilitates
introduction of effective product strategy: Due to market segmentation, product development is compatible with
consumer needs as there is effective crystallization of the specific needs of
the buyers in the target market. Market segmentation facilitates the matching
of products with consumer needs. This gives satisfaction to consumers and
higher sales and profit to the marketing firm.
4. Facilitates
the selection of promising markets: Market segmentation facilitates the identification of those sub-markets
which can be served best with limited resources by the firm. A firm can
concentrate efforts on most productive/ profitable segments of the total market
due to segmentation technique. Thus market segmentation facilitates the
selection of the most suitable market.
5. Facilitates
exploitation of better marketing opportunities: Market segmentation helps to identify
promising market opportunities. It helps the marketing man to distinguish one
customer group from another within a given market. This enables him to decide
his target market. It also enables the marketer to utilize the available
marketing resources effectively as the exact target group is identified at the
initial stage only.
6. Facilitates
selection of proper marketing programme: Market segmentation helps the marketing man to develop his marketing
mix programme on a reliable base as adequate information about the needs of
consumers in the target market is available. The buyers are introduced to
marketing programme which is as per their needs and expectations.
7. Provides
proper direction to marketing efforts: Market segmentation is rightly described as the strategy of
"dividing the markets in order to conquer them". Due to segmentation,
a firm can avoid the markets which are unprofitable and irrelevant for its
marketing purpose and concentrate on certain promising segments only. Thus due
to market segmentation, marketing efforts are given one clear direction for
achieving marketing objectives.
Essentials elements for success
of Marketing Segmentation:
Market segmentation has its own benefits and
costs. The strength of it lies in better understanding of consumers for making
intelligent marketing decisions and their implementation. The success of
marketing segmentation of depends on the following points:
1)
Marketing
segment must identifiable and measureable: The segment or the group of
buyers must be clearly defined. It is essential to know who is in segment and
who is outside the segment to get demographic, social and cultural data about
segment members. These of data should permit the measurements of the size and
importance the segment as a potential product of marketing strategy.
2)
It
evidence adequate market potential: Either an actual or potential need must
exist in order to segment that opens an opportunity. Actual needs are
recognised needs – overt demands for existing goods and services. Potential
needs can be transformed into perceived wants through education or persuasion.
Potential needs are more difficult to ascertain than the actual needs. Here,
marketer is to develop strategies only for substantial segments – whether
actual or potential.
3)
It is
economically accessible: Segmentation involves a search for enough
similarity among buyers to permit the seller each search of these potential
customers economically. For example, segment members could be concentrated
geographically, may be shopping at the same store or may be reordering the same
magazines. A segment based on motivational characteristics cannot be reached
economically.
4)
It reacts
uniquely to marketing efforts: A given segmentation, to be meaningful,
should differ in their responses to marketing efforts. Differing responses will
help in optimizing the marketing operations by changing marketing efforts and
amount involved.
5)
It is
relatively stable over a period of time: Marketing strategies are
long-range plans. Moreover, lead-time of up to a year often is needed to
analysis market and to prepare a plan. Therefore, the segments that emerge
rapidly and disappear just as quickly do not offer very good marketing
opportunities for a firm that follows the generally accepted approach. Only
highly innovative entrepreneurs can, at considerable amount of risk, attempt to
serve these segments. It is only an exceptional case than a rule.
6)
It is
dynamic: Once a company finds its segment, it will not last forever. The
marketing is changing constantly. The segments should be modified with the
changing marketing scenario. Technology, competition, perceptions and attitudes
– all are volatile. Because of such changes, marketers must monitor the market
constantly to detect the changes in it to adapt the strategy accordingly. That
is nothing different than dynamic segmentation.
5. (a) What is a new product?
Why the companies produce new products? Explain the different steps involved in
new product development.
Ans: New
products are those that are new to the company and may include major
modifications to the existing products, duplications of competitors' products,
product acquisitions or innovative original products. A new product is one that
is perceived by the majority of people in a given market as new. Its degree of
newness depends on the extent to which it involves changes in established
purchase or consumption pattern be it an entirely new as original or modified
or duplicate or a combination of these.
Why new
products are needed?
A new product is important for every business because of the
following reasons:
1. Company growth: Growth and expansion of a company is heavily dependent
on new products developments. The importance of new product is increasing day
by day in recent years and will reach even greater importance in the future as
competition continues to intensify and flooding of new products is likely to
shorten the life span of the existing products as we are seeing at present in
case of mobile phones.
2. Higher profit margins: A primary economic conclusion, derived
from the analysis of life-cycles of good many products, is that sooner or later
every product is pre-empted by another or else degenerates into profitless
price competition. This inevitable fact makes clear the necessity of careful
new product planning to maintain profit margins.
3. Utilisation of excess capacity: Each and every company has some
spare capacity which can be utilised for new product development. To use the
full capacity of the firm, new product, in whatever form, is to be produced.
4. Recycling of waste product: In mass-production lines, waste,
scrap, rejects are in larger quantities though may be representing a nominal
percentage of input. These waste products can be further utilised for new
product development.
Stages in New Product Development
Process
The
introduction of new product usually passes through various stages. In each
stage, the management must decide whether to move on to next stage with the
product idea or not. Practically, in this process some of the ideas will be
eliminated at every step. There are six stages involved in the new product
development. The stages are given below:
(I) Idea generation: New products are produced on the basis of
new ideas. Ideas may be generated from various sources like customers, dealers,
distributors, salesman, top executive, consultancy organisation, Research and
Development Department etc. The first step is to collect ideas as many as
possible so that the company can find out one of the best idea out of those
ideas to convert the same in to actual product.
(II) Screening of Ideas: All new ideas cannot be converted into
products as it requires heavy capital investments. Those ideas should be
screened and all unworkable ideas should be dropped. Only most viable, feasible
and promising one should be selected for further processing. The company uses
the concept testing method. In this method, consumer response to a description
or picture or drawings is measured even before the product is actually
produced. The purpose is to find out few best ideas.
(III) Business Analysis: During this stage, an attempt is made to
predict the economic consequences of the product for the company. In these
stages, the management should perform the following:
(a)
Identify product features.
(b)
Estimate market demand and product profitability.
(c)
Establish a programme to develop the product.
(d)
Assign responsibility for further study of the product feasibility.
(IV) Product Development or Prototype
testing: This step
consists of the following:
(a)
Prototype development giving visual image of the product.
(b)
Consumer testing of the model or prototype product.
(c)
Branding, packing and labeling of the product.
The
marketing people determine an appropriate brand name, package and price and
making sure that both tangible and intangible features are considered and
included. Focus groups, target market surveys and other market research
techniques with the physical product give the marketer additional information.
(V) Market Testing: Test marketing involves placing a full
developed new product for sale in one or more selected areas and observing its
actual performance under a proposed marketing plan. In the words of P. Kotler-
“Test marketing is the stage at which the product and marketing programme are
introduced into more realistic market settings”. The basic purpose is to evaluate
the product performance and marketing programme in a real setting prior to the
commercialization. This step provides the scope of correction and modification
of the product as well as marketing programme. Many products fail after
commercialization because of lack of test marketing. In this process, the
marketers approach the trial purchasers and first repeat purchaser to know
their feelings and reaction about the product as well as marketing programme.
On the basis of their opinions the marketers make certain required modification
in the product as well as marketing programme. After the favourable result
usually, products are sent for commercialization.
(VI) Commercialization: After favourable response in test
marketing, full scale production and marketing programme are planned and then
the product is launched. It may be in phased manner or the product may be
introduced simultaneously depending on the company’s plan and resources
available. The phased manner introduction helps to avoid short supply of the
product due to initial gaps in production and distribution.
OR
(b) What factors make a brand
name good one? What are the benefits gain by the manufacturers from branding?
6+8=14
Ans: 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.
Elements of a Good Brand
It is generally a difficult decision to
select any brand, for the producer-firm, for its produced goods. Although no
legal restriction is there regarding the selection of a brand, yet
the marketing managers are
required to keep enough of care and precaution in selecting the brand. While
selecting the brand, the following qualities
must be essentially borne into consideration:
a)
Indicative
of the Qualities or Merits of the Product. The brand which is
selected must be capable of expressing the maximum
qualities of the products.
b)
No
Confusion about the Product. It must not be leading to confusion to the consumers.
c)
Simple and Brief. The brand must be
brief so that the people could
easily remember it, e.g. Murphy, Bush, Amul, Cibaca, Dalda, etc.
d)
Simple to Pronounce. It must be capable
of being easily spoken or
pronounced.
e)
Facility
in Advertising. The brand must be such that by means of any
advertising medium, it could be used to publicize the same.
f)
Attractive. The brand should be such
that it could be melodious in
hearing and could attract consumers.
g)
Not Vulgar. From social point of view,
the brand should not be vulgar or obscene.
h)
Facility in Registration. The brand
should be such that there is not much problem in getting it registered.
i)
Specific. It must be specific and it
must contain some differentiating characteristics, compared to other products.
j)
Economical. There must not be much
expenditure to be incurred in getting the brand printed on the label or packet
during the advertising campaign.
Importance
of Branding
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. Some of the importances of good brand name are stated below:
1. Creates customer’s
preference: Similar products and services of various companies are available in
the market which creates confusion amongst the customer’s mind. Branding helps
to attract the customer. It induces customer’s preference towards a product or
service.
2. More revenue: Branding
helps the companies to increase their market share due to which their revenues
also increases. Also, a company with good brand name charges higher price as
compare to other competitors.
3. Helps to survive during
recession: During recession a company with good brand name can easily survive
which is not possible for a new or general company.
4. Increase in employee’s
efficiency: When the brand of company is well known, people also want to work
with that company. Highly qualified and skillful candidates always prefer to
work with the establishment having good brand name.
5. Attracting new
distributor: A company with good brand name can easily attract local and global
distributor. Every distributor wants to work with good brand because it
increases their revenue.
6. (a) Who are large scale
retailers? What are the services rendered by retailers in modern marketing? 7+7=14
Ans: Large scale retailers are
those who made available single type of goods or a variety of goods to a large number of consumers in a big shop
under a single roof or may be made available at the convenience of customers.
Large scale retailers include:
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
2. Multiple Shops: A multiple shop or a chain store is a system of
branch shops operated under a centralised management and dealing in similar
lines of goods. It is chain of retail stores dealing in identical and generally
restricted range of articles operating in different localities under central
ownership and control.
3. 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.
4. Mail Order Houses: In this form of business, the seller
contacts the buyer through some form of advertising. That is the
customers do not visit the sellers' 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.
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.
Services or functions of
Retailer
Services to Wholesalers and Manufacturers
1. Retailers
give manufacturers or producers access to markets by offering them the
opportunity to present their products to consumers.
2. The
manufacturer and the wholesaler are relieved of making individual sales to
consumers in small quantities.
3. Retailers
supply valuable and reliable information to wholesalers and manufacturers about
the consumers' demands and the changes occurring in their likes and dislikes.
4. Information
about the consumers' likes and dislikes received from the retailers through the
wholesalers enable the manufactures to make suitable adjustments in the design,
size and contents of their products. Thus they can manufacture right types of
goods at right time.
Services to Consumers
1) As retailer
holds stocks of goods ready for immediate use and he is prepared to sell in
small quantities, the individual or household consumer is relieved of the
burden of storing large quantities of every article of daily use.
2) Retailer
provides consumers with a wide variety of choice. Retailers, by assembling
products of different variety from different manufactures, enable consumers to
make choice from a large variety of goods displayed in their stores.
3) Retailers
buy and stock goods suitable to the consumers.
4) Retail
shops are situated in convenient localities, usually very near to the
consumers' residence.
5) Retailers
stock fresh goods to meet daily demands of their customers.
6) They sell
to consumers in quantities, which suit the pockets of different individuals.
7) Retailers
make available to their customers goods of the sizes, styles, types, qualities
and prices they prefer.
OR
(b) Explain the structure of
physical distribution system. Discuss the components of physical distribution
in modern marketing. 7+7=14
Ans: 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.
Decisions/
Components/ Elements of Physical Distribution
1. Material Handling: Material handling
stands for the product movement after it gets out from manufacturing plant but
before it is loaded on the transport mode to the destination of consumer.
Material handling is undertaken at every stage of logistics activity namely,
during production – storage – transport and packaging processes. Thus, it
represents product handling from plant to warehouse or warehouses, location to
another within the warehouse and from warehouse to the place of loading from
transport models. Material handling is the sub-system of physical distribution
system of a firm and is an agent of cost reduction and improved customers
service. In effect, an efficient and effective materials handling system in a
unit contributes to the efficiency and effectiveness of the total physical
distribution system. It is because, sound management of material handling avoids
damage in product handling, prevents unnecessary and irrelevant movement,
facilitates order-processing and order picking and enables efficient product
movement to match with inventory levels and transportation.
2. Inventory Planning And
Control: Inventory
refers to the stock of products a firm has on hand and ready for sale to
customers. Inventories are kept to meet market demands promptly. Inventory is
the link interconnecting the customer’s orders and the company’s production
activity. Infact the entire physical
distribution management rotates around the inventory management. Inventory
management is the heart of the game of physical distribution. Marketing managers undertake an
inventory planning to develop adequate assortments of products for the target
market and also try to control the costs involved in obtaining and maintaining
inventory.
3. Order Processing: Order processing includes
the activities of receiving, recording, filling and assembling and orders for
shipment. Each customer aspects that the order placed by him should be
implemented without inordinate delay on one hand and that the goods dispatched
match perfectly to his order specification. This implies quality control that
ensures the upright execution of orders. That is why, marketers and
distribution managers are very much concerned about the order cycle time and
every effort is made to keep it rigged.
An order cycle is the period between the time
of the placement of an order by the customer to the time of the arrival of the
goods at his destination. This cycle is made up of the transmission of the
order, document processing in the department and shipment of the goods. Here,
document processing is a routine activity which is standardized. Since, order
processing involves series of logical steps from receiving order to the
dispatch, there should be a standard procedure for receiving the orders,
handling the orders, granting of credit, invoicing, dispatching, collecting the
bills and post dispatch adjustments. The order processing procedures followed
in a firm have dual impact on consumer service level namely, it affects:
a)
Order time that is the time interval between two
orders of a customer, and
b)
The consistency and uniformity of delivery time
i.e., regular and dependable deliveries.
4. Communications: It is a process of passing information and
understanding from one person to another. This includes the information system
which should link producers, intermediaries, and customers. Computers, memory
systems, display equipment and other communication technology facilitate the
flow of information among other members in the channel. A manager to be successful must develop an effective system of
communication. So that he may issue instructions, receive the reactions of the
subordinates, and guide and motivate them.
5. Organisational Structure: The person in charge of the physical
distribution should co-ordinate all Activities into an effective system to
provide the desired customer service in the most efficient manner. Examples of
organizational consideration are: (i) How can the five elements of physical
distribution best be coordinated so that a team effort results? How can
compartmentalization thinking be avoided? (ii) If a central head is established
to direct all physical distribution activities, to whom should he report—The
Head of the Marketing or The Chief Executive Officer?
6. Transportation: Transportation as the
last component of distribution system is to do with the movement of products
from warehouse to the customer destinations. Transportation involves loading
and unloading of products and transshipment between the place of dispatch and
places of arrival. The major contribution of transportation management is cost
reduction because, cost of transportation is 35 per cent of total distribution
costs and 15 to 20 per cent of the total price paid by the users. The point
lies in cost reduction and creation of maximum of time utility. Every marketer
takes sufficient interest in company transportation and transportation
decisions because, it is the correct choice of transport mode of modes that
will help in gaining the effects as it affects pricing of products, regular and
punctual delivery performance and the conditions of the goods in transit – all
affecting finally the consumer satisfaction and sales profitability.
(Old
course)
Full
marks: 80
Pass
marks: 32
1. (a)
Write True or False: 1x4=4
a) Marketing
stablishes the economic conditions of a country. False
b) Buying
motives and selling points are same. False
c) Product
packaging performs good many advertising functions. True
d) All
propaganda is advertising but all advertising is not propaganda. True
(b) Fill
in the blanks: 1x4=4
a) Mega
marketing is the set of those strategies
where closed markets are opened up.
b) Market
segmentation helps in assessing the strength and weaknesses of the their own and the competitors.
c) The three
types of discount allowed to buyers are trade discount, Quantity discount and cash discount.
d) Feedback
is the last step of the communication process.
2. Write
short notes on: 4x4=16
a) Sales
promotion
b) Buying
process
c) Product
life cycle
d) Leader
price policy
3. (a)
What is marketing concept? Discuss the factors which influence the marketing
concept. 3+8=11
OR
(b) What
is product mix? Discuss the important variables of product mix. 3+8=11
4. (a)
Explain the features of buying motives. What are the importance of buying
motives in marketing system? 6+5=11
OR
(b) What
are the benefits of market segmentation? What are the requisites of a good
segmentation? 5+6=11
5. (a) What
are the most important objectives of product planning? What are the causes of
failure of new product in the market? 6+5=11
OR
(b) What
is branding? Discuss the merits of branding to middlemen and customers. 3+8=11
6. (a)
What is pricing? Explain the appropriate approaches to pricing. 11
OR
(b) What
is communication? Critically discuss the process of communication. 3+8=11
7. (a) (i)
Explain the functions of wholesale traders in brief. 4
(ii) What
are the services rendered by wholesalers to manufacturers? 8
OR
(b) (i)
Discuss in brief the role of physical distribution in marketing. 4
(ii) What
are the merits and demerits of roadways? 8
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