Principles of Marketing Solved Papers: Nov' 2017 (3rd Semester)

2017

COMMERCE (Speciality)

Course: 301 (New course)

(Principles of Marketing)

Full marks: 80

Pass marks: 24

Time: 3 hours

2. Write short notes on any four of the following:                           4x4=16

a) Importance of environmental analysis:

b) Factors influencing consumer behaviour:

Ans: Factors that influence  consumer behaviour:

 (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.

(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.

(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.

c) Buying motives: A consumer does not buy a product or service just because he wants to buy. There are many factors which affects buying behaviour of consumers. Human beings are motivated by ‘needs’ and ‘wants’. These needs and wants build up inside, causing people to desire to buy a product or a service. These needs and wants built up pressure or tension leads to reasons which are manifested in a psychological wave called ‘motive’. ‘Motive’ is the energy which implies behaviour thought it does not give pre use direction to that behaviour”. Motive is something which is capable of inducing a person to act in a particular way. Motive is the strong feelings, urge, instinct, drive desire, stimuli, thought, emotion, a belief, a tension that makes a person to react in the form of buying decision.

Professor D. J. Duncan defined, “buying motives”, as “those influence or considerations which provide the impulse to buy, induce action or determine choice in purchase of goods and services”.

In the words of Professor William Stanton, “a motive is a drive or an urge for which an individual seeks satisfaction; it becomes a buying motive when the individual seeks satisfaction through the purchase of something”.

d) 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.

e) Factors affecting choice a distribution channel:

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. (2)   Perishability. (3)   Size and Weight. (4)   Technical Nature. (5)   Goods Made to Order. (6)   After-Sales Service.

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. (2)   Expansion of the Consumers. (3)   Size of the Order. (4)   Objective of Purchase. (5)   Need of the Credit Facilities.

C. Factors Pertaining to the Middlemen: The following are the main factors concerned with the middlemen:

(1)   Services Provided by Middlemen. (2)   Scope or Possibilities of Quantity of Sales. (3)   Attitude of Agents towards the Producers' Policies. (4)   Cost of Channel of Distribution.

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. (2)   Financial Resources of the Company. (3)   Managerial Competence and Experience.

E. Other Factors: (1)   Distribution Channel of Competitors. (2)   Social Viewpoint. (3) Freedom of Altering.

3. (a) Define the terms ‘market’ and ‘marketing’. How modern concept of marketing differs from traditional concept of marketing?                                         2+2+10=14

Ans: Concept of Market

Traditionally market was defined as a place where buyers and sellers meet each other and conduct buying and selling activities. But in modern time, the term market has a broader meaning. Market refers to the whole of any region in which buyers and sellers are brought into contact with one another and by means of which the prices of the goods tend to be equalized easily and quickly.

In the words of Mr. Cornot, ”By market is meant not any particular place in which things are bought and sold, but the whole of any region in which the buyers and sellers are in such free interaction with one another, that price of the same goods tends to equality, easily and quickly.”

In the words of Mr. Pyle, “Market includes both a place and region in which buyers and sellers are in free competition with one another,”

From the above discussion, it is clear that a market is not only a place but also a region where buyers and sellers are interacted together for exchange of goods and services.

Marketing

Marketing is an ancient art and is found everywhere. Formally or informally, people and organizations engage in a vast numbers of activities relating to exchange of goods and services that could be called marketing. Marketing is a social process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others. Marketing deals with identifying and meeting human and social needs or it can be defined as “meeting needs profitably”.

In the words of Philip Kotler, “Marketing is human activity directed at satisfying needs and want through exchange process.”

The American Marketing Association has defined marketing as “an organizational function and a set of processes for creating, communicating and delivering value to the customers and for managing customer’s relations in ways that benefit the organization and the stake holders.”

Peter Drucker says it this way that,” the aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. All that should be needed is to make the product or the service available.”

From the above discussion, we can say that marketing is the process of exchange of goods and services and includes all those activities which helps in exchange of goods and services.

Traditional and Modern Concept of Marketing

Traditional concept of marketing

According to this concept, marketing consists of those activities which are concerned with the transfer of ownership of goods from producers to consumers. Thus, marketing means selling of goods and services. In other words, it is the process by which goods are made available to ultimate consumers from their place of origin. The traditional concept of marketing corresponds to the general notion of marketing, which means selling goods and services after they have been produced. The emphasis of marketing is on sale of goods and services. Consumer satisfaction is not given adequate emphasis. Viewed in this way, marketing is regarded as production/sales oriented.

Modern concept of marketing

According to the modern concept, marketing is concerned with creation of customers. Creation of customers means identification of consumer needs and organising business to satisfy these needs. Marketing in the modern sense involves decisions regarding the following matters:

1. Products to be produced

2. Prices to be charged from customers

3. Promotional techniques to be adopted to contact and influence existing and potential customers.

4. Selection of middlemen to be used to distribute goods and services.

Modern concept of marketing requires all the above decisions to be taken after due consideration of consumer needs and their satisfaction. The business objective of earning profit is sought to be achieved through provision of consumer satisfaction. This concept of marketing is regarded as consumer oriented as the emphasis of business is laid on consumer needs and their satisfaction.

From the above discussion, the following differences between these two concepts are drawn:

OR

(b) “Marketing mix is a mix of mixes.” Elucidate the statement.                              14

Ans: 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:

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.

6) Target oriented: It is one of the important components of marketing mix centers around the consumer and his welfare.

7) Universal approach: Marketing is a universal concept. It is applicable to not only business organizational but also to non-business and non-profit organizations.

8) Creative activity: Determination of right marketing mix is a creative process. The imagination, intelligence and creativity to prepare a perfect blend of four variables to provide maximum satisfaction to the consumers and returns to the organization.

Principle Ingredients of Marketing Mix (Four P’s) and their importance

Successful businessmen know the importance of marketing mix because they cannot design and promote their products without marketing mix.  It is a mixture of 4 P’s of marketing mix such as product, place, price and promotion. 4 P’s Of Marketing Mix:

1. Product: 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.

2. Price: It is the worth of product on which customers are agreed to buy the products.  Price of the product should be according to the range of regular customers.  Prices are fluctuating according to seasonal requirements. Marketers always try to satisfy their clients at any cost.  If employees of the company are satisfied with their job and performance rewards, they can become an effective asset of any organization.

3. Place: Products always design based on geographical place because customers buy products according to their traditions and seasons.  Companies which are going to spread their business networks throughout the world must visit the place where they want to open their branches. They need to study the traditions and seasonal changes of the country where they want to initialize their products.

4. Promotion: Promotion activities involve marketing and advertising.  Promotional activities are used to create awareness about the products.  Customers know about products and their specification through social marketing media. Companies adopt social marketing media in order to create awareness about their products and services.  Promotional activities and techniques are important if companies initialize new products or make some changes in product’s specifications. Promotional activities include advertising, selling, public relations and sales promotions.  Advertising is a paid form of promotion that grabs the attention of customers through channels or TV. It also involves relationships between customers and companies.  Marketers should design products that meet customers’ needs and demands.

Criticisms of the 4 P's Of Marketing Mix

So how can the marketing mix and the traditional four P's of marketing are criticised?

4. (a) What do you mean by consumer behaviour? How does it help a business firm in dealing with customer? Explain. 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.”

Importance of Consumer Behaviour

The consumer is the focus of marketing efforts. The modern concept spells out the real significance of buyer’s Behaviour. The modern marketing management tries to solve the basic problems of consumers in the area of consumption. To survive in the market, a firm has to be constantly innovating and understand the latest consumer needs and tastes. It will be extremely useful in exploiting marketing opportunities and in meeting the challenges that the Indian market offers. It is important for the marketers to understand the buyer behaviour due to the following reasons.

OR

(b) What are the various methods of segmenting the markets? Explain the criteria of successful market segmentation.                7+7=14

Ans: 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

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:

5. (a) Explain the term ‘brand’ with example. Discuss the benefits and limitations of branding a product. 4+5+5=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.

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.

Disadvantages of Branding

A good brand has also some disadvantages:

a) Huge cost involve in brand development: The biggest disadvantage of branding is that it involves huge cost because brands are not created overnight and huge cost incurred on advertising and publicity of the goods and services. Advertising has to be done within a regular interval because doing it occasionally does not result in producing the desired result of creating a good brand image in the minds of the consumers.

b) Chances of goodwill deterioration: Another disadvantage of branding is that if due to some reason brand gets a bad name or reputation than it is very difficult or almost impossible to regain the original position or status of the brand.

c) Loss of identity of company: Another disadvantage of branding is that the scope of company is limited or in simple words company losses flexibility to some extent as consumer tend to associate a particular brand with particular product only and if the company sells other products then there is no guarantee that the other product will perform equally well in the market.

(b) Give the meanings of ‘price’ and ‘pricing’. Explain the objectives of pricing policy of a business firm. 2+2+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 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.

6. (a) What do you mean by ‘physical distribution’? Discuss its role in modern marketing.           4+10=14

Ans: 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.

Significance or Importance of Physical Distribution Management:

The physical distribution of goods has assumed great importance particularly in recent years, because of the ever increasing competition for markets. The importance of physical distribution lies in the following directions:

1. It Creates Utilities Of Time And Place: By making available a product at the place where and when it is needed.

2. It Accounts For A Major Portion Of Marketing Costs: According to one estimate, physical distribution costs constitute as much 60% of the total marketing cost. Physical distribution is a very important area for cost savings. Over the years, in most businesses, physical distribution costs have grown into a sizeable portion of the total costs. Surprisingly, physical distribution despite being an important cost area, has remained one of the neglected areas for cost reduction. 

3. Bigger Share in the National Wealth: It represents large share in the national wealth in the form of facilities—rail, road, trucks, highways, aircrafts, ship, docking facilities, pipelines, storage facilities and equipment.

4. Specialisation It Facilitates Geographic Specialization: Each area produces goods that its natural resources, climate or pool of manpower resources enable it to produce more efficiently.

5. Determines Standard Of Living: This is so because proper distribution of products makes them available to a large number of people, at a relatively lower cost. Thus it can be said that physical distribution directly affects sales, customer service and satisfaction, and costs.

Physical distribution is a very important area for cost savings. Over the years, in most businesses, physical distribution costs have grown into a sizeable portion of the total costs.

OR

Ans: Sales promotion: Sales promotion consists of all activities other than advertising, personal selling and publicity, which help in promoting sales of the product. Such activities are non-repetitive and one time offers. According to American Marketing Association, sales promotion include, “those marketing activities other than personal selling, advertising and publicity that stimulate consumer purchasing and dealer effectiveness, such as point of purchase displays, shows and exhibitions, demonstrations and various non-recurring selling efforts not in the ordinary routine.”

The main aim of sales promotion is to increase sales and profits of the firm but it is quite different from personal selling and advertising. In personal selling, customer is persuaded by a sales person face to face. Advertising is a non-personal mass communication media. Sales promotion, on the other hand, is a non-recurring and non-routine method. Its main aim is to supplement and coordinate the personal selling and advertising. It is a supporting and facilitating element of promotional strategy. Sales promotion bridges the gap of advertising and personal selling.

Merits of sales promotion:

Demerits of sales promotion:

Sales promotion techniques: (a) Rebate (b) Product combination (c) Lucky Draw (d) Contest (e) Discounts

(a) Rebate: Sometimes, the product is made available at special prices less than the original prices for a limited period of time, e.g., recently Coke and Pepsi announced special price of their 500 ml bottles.

(b) Product Combination: Product combination is the bonus items given free with the purchase of a product. For e.g. A milk shakers along with Nescafe, or mugs with Bourn vita or a diary along with a packet of chips. They are effective in getting consumers to try a new product.

(c ) Lucky Draw: A firm of purchased of a fixed amount gives a coupon to a customer which entitles them for a lucky draw, e.g., Bikanerwala restaurant in particular season gives lucky draw coupon on purchase of Rs. 200 or more to its customers which entitles them to win exciting prizes like car etc.

(d) Contests: In these, consumer’ are required to participate in some competitive event involving application of skills or luck and winners are given some rewards. For instance, Golden Harvest, maker of premium bread usually has children drawing competition.

(e) Discounts: These are like price promotion in which certain percentage of price is reduced as discount from the list price, e.g., most of the retailers of garment like Snow White and Shopper’s Stop offer their product at generous discount during a limited period at the end of the season.

3. (a) Explain the nature and scope of marketing.                                              5.5 + 5.5 =11

OR

(b) Discuss briefly the factors which influence the marketing environment.          11

4. (a) What is meant by market segmentation? Discuss the significance of market segmentation in marketing decision-making.                3+8=11

OR

(b) What are the factors which influence the consumer’s behaviour in the purchase of a particular product? Explain. 11

5. (a) Explain the concept of ‘packaging’ and discuss its various functions.      3+8=11

OR

(b) What is product life cycle? Briefly explain the stages of product life cycle. 3+8=11

6. (a) Explain the objectives of pricing policy of a business firm.                  11

OR

(b) Briefly explain the various methods sales promotion.                                              11

7. (a) What is meant by distribution channel? Explain the role of wholesalers in distribution of goods.      4+8=12

OR

(b) Briefly explain the following:                                                                                               6+6=12