principles of marketing.pdf

PRINCIPLES OF MARKETING

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F-2,Block, Amity Campus Sec-125, Nodia (UP)

India 201303 ASSIGNMENTS

PROGRAM: SEMESTER-I Subject Name : Principles of Marketing Study COUNTRY : SOMALIA Permanent Enrollment Number (PEN) : BFIA01512010-2013019 Roll Number : Student Name : Mohamed Abdullahi Khalaf

INSTRUCTIONS

a) Students are required to submit all three assignment sets.

ASSIGNMENT DETAILS MARKS Assignment A Five Subjective Questions 10 Assignment B Three Subjective Questions + Case Study 10 Assignment C 45 Objective Questions 10

b) Total weightage given to these assignments is 30%. OR 30 Marks c) All assignments are to be completed as typed in word/PDF. d) All questions are required to be attempted. e) All the three assignments are to be completed by due dates (specified from time to time) and need to be submitted for evaluation by Amity University. f) The evaluated assignment marks will be made available within six weeks. Thereafter, these will be destroyed at the end of each semester. g) The students have to attached a scan signature in the form.

Date : 13/01/2011 Signature

( ) Tick mark in front of the assignments submitted

Assignment A Assignment B Assignment C


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Assignment A

Q1 For what reasons might a fast food restaurant company choose to adopt the societal marketing concept? By adopting the concept, is it really changing the way it does business?

Answer:

The societal marketing concept is an organizations task which tries to identify the needs and interests of the consumers and delivers quality services or products as compared to its competitors in a way that consumer's and society's well being is maintained. In other words organizations have to balance consumer satisfaction, company profits and long term welfare of society.

This is a new marketing philosophy that tries to reduce the inequalities at various levels. It emphasizes that organizations should not only think of cut-throat policies to achieve targets and jump ahead of competitors but should have ethical and environmental policies and then back them up with action and regulation.

Societal marketing can be achieved by following a few principles. It should always be remembered that consumer's needs are of paramount interest. Improvements in products which are both real and innovative should be carried out to give long term value to the product; do what is good for the society with a sense of mission and trust. In this way the focus shifts from transaction to relationships. If a client 'repeats business' a bond is created between him and the product and is worth its while for the organization to nurture this bond, and that is the reason a fast food restaurant company may choose to adopt this concept of marketing. They are trying to differentiate their product from the products of competitors by showing the consumer and society that they are the societys long-term care takers. It connects the company to the society, to a degree that they see it as a part of their lives, and makes the companys picture brighter and better than its competitors.

The concept has an emphasis on social responsibility and suggests that for a company to only focus on exchange relationship with customers might not be suitable in order to sustain long term success. Rather, marketing strategy should deliver value to customers in a way that maintains or improves both the consumer's and the society's well-being.

Most companies recognize that socially responsible activities improve their image among customers, stockholders, the financial community, and other relevant publics.


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Ethical and socially responsible practices are simply good business, resulting not only in favorable image, but ultimately in increased sales.

Q2 To what extent is it true to say that advertising builds brands, while sales promotion undermines them? Is there any overlap or convergence of the two functions

Answer:

Successful companies use targeted marketing strategies to compel consumers to purchasing goods and services. Marketing campaigns may include advertising or sales promotions, two popular marketing techniques of businesses.

Advertising Definition: is any method used to attract consumer attention to products and services. Radio commercials, television ads and Internet websites are popular forms of advertising.

It is used to introduce new products into the marketplace and show consumers the benefits of these new products. Advertising can also infuse life into existing products by reminding consumers of the need to replace an item that is old or worn out.

Sales Promotion: are ways to promote sales by offering extra incentives for consumers. Standard sales promotion gimmicks include "buy one, get one free," free gifts with purchases, special coupons and 0 percent financing.

Sales promotions are best used with special events or big-ticket consumer items. Goods with an established market and consumer demand benefit from sales promotions because they give consumers motivation to purchase items now rather than later.

Advertising builds brands by giving personality and a name to the product, it gives it global recognition and in doing so it promotes itself, these attributes overlap with the qualities and functions of sales promotion such as the encouragement of purchase of the product thus in doing so it undermines thing that sales promotion seeks to do.

Creating a good mix of advertising and sales promotions can generate a lot of interest for a company and lead to increased sales. Companies must determine which marketing method best promotes their product and create a marketing strategy that is inexpensive and effective.


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Q3 Write short notes on: a) Promotion Mix. b) Consumer Behavior Process. c) Pricing Strategies

Answer:

a) Promotion Mix: A promotion mix (sometimes called a marketing communications mix) is the particular combination of promotional methods a firm uses to reach a target market.

It is not enough for a business to have good products or services sold at attractive prices. To generate sales and profits, the benefits of products and services have to be communicated to customers. In marketing, this is as promotion.

A business' total marketing communications programme is called the promotion mix. It consists of advertising, personal selling, sales promotion and public relations. These are the four key elements in the promotion mix.

1. Advertising: is any paid form of non-personal communication of ideas or products or services in the media: televisions, newspapers, magazines, radios, cinemas and etc. Advertising is intended to persuade consumers and to inform them. The two basic aspects of advertising are the message (what you want your communication to say) and the medium (how you get your message across).

2. Personal Selling: Oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale".

3. Sales Promotion: Providing incentives to customers or to the distribution channel to stimulate demand for a product.

4. Public Relations: The communication of a product, brand or business by placing information about it in the media without paying for the time or media space directly.


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b) Consumer Behavior Process: is the study of when, why, how, and where people do or do not buy a product. It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.

Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset for customer behaviour analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalization, customization and one-to-one marketing. Social functions can be categorized into social choice and welfare functions.

c) Pricing Strategies: Price planning that takes into view factors such as a firm's overall marketing objectives, consumer demand, product attributes, competitors' pricing, and market and economic trends.

There are several different pricing strategies available to a business:

Strategy Description

Cost-plus pricing Setting a price by adding a fixed amount or percentage to the cost of making the product

Penetration pricing Setting a very low price to gain as many sales as possible

Price skimming Setting a high price before other competitors come into the market

Predatory pricing Setting a very low price to knock out all the other competition

Competitor pricing Setting a price based on competitors prices

Price discrimination

Setting different prices for the same good, but to different markets e.g. peak and off peak mobile phone calls

Psychological pricing

Setting a price just below a large number to make it seem smaller e.g. $9.99 not $10

A new business that is entering the market might try the following strategies:


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If they are first into the market then they might use price SKIMMING.

If they are trying to establish themselves in the market then PENETRATION pricing.

Sometimes a business may use a loss leader. This is a product where the price is so low that the retailer may not make any profit or even a loss on the sale, but does attract shoppers to buy other full price products. Orange juice has been used by businesses such as Rank Hovis McDougall to entice supermarkets to stock more of their other products.

Price skimming has been used for the launch of high technology products, such as DVD players and Personal Digital Assistants (PDAs) - which were far more expensive than they are now when they first arrived in the market.

Q4 "Elasticity of demand is a fine theoretical concept of economists, but difficult for marketers to use in practice". Critically assess this statement

Answer:

The concept of elasticity of demand is very important in economic theory and policy. It is used to measure the effect of changes in price on quantity demanded. It is known that according to the law of demand, if price decreases the demand increases and if price increases the demand falls. The quality of demand to change with changes in price is called the elasticity of demand.

By definition, then, the elasticity of demand is the rate at which the quantity demanded changes in response to a change in price. Its formula is:

Ed = percentage change in quantity demanded/percentage change in price.

This rate of change in demand varies according to commodities, market and consumers. At times a small change in prices has a big effect of demand. This phenomenon is called elastic demand. This effect is usually seen when consumers have more buying options. There are also situations when a large change in price has a small effect of demand. This is called inelastic demand. Commodities like basic food items like salt tend to show inelastic demand.

A perfect elastic demand exists when demand increase with no change in price. This is called infinite elasticity. A situation of zero elasticity result when lowering the price does not increase the demand.


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This concept of elasticity of demand is very important as you see in economical point of view; because it represents the nature of the goods that economists are dealing with.

It is Important For Government, it helps the finance minister of the monopolist in imposing a tax. When a tax is imposed the price tends to rise. But if the demand is very elastic it will considerably fall when the price has risen and thus the government will not be able to earn expected revenue. Thus this concept of elasticity of demand helps the government to impose the tax on a commodity whose demand lass elastic and hence earn valuable revenue.

The businessmen also take cue from the nature of demand while fixing his price. IF the demand is inelastic he knows that the people must buy such commodities. Thus he will be able to change a higher price and big profits.

The concept of elasticity of demand is of special importance to the monopolist. He is in a position to control the price and fix high price when demand is inelastic and low price when it is elastic will bring him the maximum profit.

In case of joint products separate costs are not ascertainable. Hence the producer will mostly be guided by the nature of demand while fixing the price.

The concept of elasticity of demand influences the determination of wages of a particular type of labour. If the demand of particular type of labour is inelastic trade union can easily get their wages raised. On the other hand of the demand for labour is relatively elastic trade union trade unions may not be successful in raising wages.

The concept of elasticity of demand is used in calculating the terms of trade. Whenever a country fees an adverse balance of payment the government considers the elasticity of demand for the countrys export and imports before devaluing its currency.

Elasticity of demand is an important concept in the determination of price policies. However, the measurement of elasticity is difficult for marketers in actual practice. The difficulty arises from the fact that elasticity is a concept relating to a given point of time, and price elasticity describes the effect of price on quantity, assuming all other determinants to be constant. Two statistical approaches attempt to estimate the nature of the demand curve: (i) study of past time series of prices and quantities; and (ii) controlled experiments. However, even if a manager does not want to go to the trouble of using these methods, the concept is valuable as an aid to his judgment.


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Q5 What is product Mix of a company. How company uses it to compete in the market.

Answer:

Product mix is a combination of products manufactured or traded by the same business house to reinforce their presence in the market, increase market share and increase the turnover for more profitability. Normally the product mix is within the synergy of other products for a medium size organization. However large groups of Industries may have diversified products within core competency. Larsen & Toubro Ltd, Godrej, Reliance in India are some of the examples.

One of the realities of business is that most firms deal with multi-products .This helps a firm diffuse its risk across different product groups/Also it enables the firm to appeal to a much larger group of customers or to different needs of the same customer group .So when Videocon chose to diversify into other consumer durables like music systems, washing machines and refrigerators, it sought to satisfy the needs of the middle and upper middle income group of consumers.


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Assignment B

Q1 critically, assess methods used by banks to develop ongoing relationships with their personal customers.

Answer:

Competition in the financial services industry has intensified in recent years, owing to events such as technology changes and financial industry deregulation. Conventional banking distribution has been gradually supplemented by the emerging use of electronic banking. Many bank customers prefer using ATMs or a website rather than visiting a branch, while technology has also reduced barriers to entry for new customers.

Today, customers have more power in deciding their bank of choice. Consequently, keeping existing customers, as well as attracting new ones, is a critical concern for banks. Customer satisfaction is an important variable in evaluation and control in a bank marketing management. Poor customer satisfaction will lead to a decline in customer loyalty, and given the extended offerings from the competitors, customers can easily switch banks. Banks need to leverage effectively on their customer relationships and make better use of customer information across the institution.

CRM--a powerful tool

CRM is a powerful management tool that can be used to exploit sales potential and maximize the value of the customer to the bank. Generally, CRM integrates various components of a business such as sales, marketing, IT and accounting. This strategy may not increase a business's profit today or tomorrow, but it will add customer loyalty to the business.

In the long term, CRM produces continuous scrutiny of the bank's business relationship with the customer, thereby increasing the value of the customer's business. Although CRM is known to be a relatively new method in managing customer loyalty, it has been used previously by retail businesses for many years.

The core objective of modern CRM methodology is to help businesses to use technology and human resources to gain a better view of customer behaviour. With this, a business can hope to achieve better customer service, make call centres more efficient, cross-sell products more effectively, simplify marketing and sales processes, identify new customers and increase customer revenues.


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As an example, banks may keep track of a customer's life stages in order to market appropriate banking products, such as mortgages or credit cards to their customers at the appropriate time.

The next stage is to look into the different methods customers' information are gathered, where and how this data is stored and how it is currently being used. For instance, banks may interact with customers in a countless ways via mails, emails, call centres, marketing and advertising. The collected data may flow between operational systems (such as sales and stock systems) and analytical systems that can help sort through these records to identify patterns. Business analysts can then browse through the data to obtain an in-depth view of each customer and identify areas where better services are required.

CRM and banks

One of the banks' greatest assets is their knowledge of their customers. Banks can use this asset and turn it into key competitive advantage by retaining those customers who represent the highest lifetime value and profitability. Banks can develop customer relationships across a broad spectrum of touch points such as at bank branches, kiosks, ATMs, internet, electronic banking and call centres.

CRM is not a new phenomenon in the industry. Over the years, banks have invested heavily in CRM, especially in developing call centres, which, in the past, were designed to improve the process of inbound calls. In future, call centres will evolve to encompass more than just cost reduction and improved efficiency. According to Gartner Group, more than 80 per cent of all US banks will develop their call centres as alternative delivery channels and revenue centres, to be used for the delivery of existing products and services.

But to be successful, a bank needs more than the ability to handle customer service calls. It needs a comprehensive CRM strategy in which all departments within the bank are integrated.

CRM in e-banking

With the advent of the internet, building good relationships with customers will become more imperative than ever. Not only does the internet bring the opportunity for high tech CRM solutions, but it also gives customers the ability to change banks with a simple click of a mouse.

PwC Consulting recently surveyed banks globally on their CRM efforts, as well as consumers on their buying preferences and practices. The research revealed that


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nearly one-third of the consumers surveyed believe that the most important aspect when dealing with a bank was having a variety of channels through which to deal with the bank.

Each communication channel in a bank opens a door for an opportunity. Examples include Wireless Application Protocol (WAP) mobile phone and wireless devices, while interactive television is not far behind. The danger is that the banks rush to the technology without studying how it will fit into their overall CRM picture.

Moreover, the internet has simplified bi-directional communication, for the first time offering a better way for consumers to relay personal information to the banks. Instead of waiting to be mailed a form to open an account or order a phone line, a prospective customer can send an application through cyberspace, resulting in shorter delivery time, improved accuracy, and quite often a higher positive perception.

Q2. "Too much segmentation can be costly and results in a paralysis by analysis". Discuss the view that for many markets, Henry Ford's approach of producing a limited range of products for the "average" customer may be the most profitable option for a company.

Answer:

Segmentation is the process of grouping people or organizations within a market according to similar needs, characteristics, or behaviors.

According to Sam Koslowsky, It is the most basic analysis method that can be done manually and requires separating a group of people into different categories based on what they have or havent.

Segmentation entails using variables that you know about your customer base, finding a correlation among those variables, then grouping like individuals together and marketing to them in a more efficient way. Although segmentation offers some efficiency, it is limited in accuracy, broad in scope, and it is not predictive at all in terms of understanding customers' wants and needs.

By making too much segmentation based on several variables a business is doing a time and money costly process. So the pest approach of production for most companies is Henry Fords approach of production, which indicates that a limited range of products for the average customer is indeed to get the most profitable option. The reason is that mass production, mass distribution, and mass advertising


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are costly and not necessary; it can succeed with limited resources and abilities by concentrating efforts.

Q3 Idea generation is an important activity for companies. But it can happen at any level. Discuss in lieu with commercialization of idea.

Answer:

Idea Generation: is an important activity for any company, because it is the first step of new product development, this requires gathering ideas, and evaluating potential product options. For many companies idea generation is an ongoing process with contributions from inside and outside the organization. Many market research techniques are used to encourage ideas including: running focus groups with consumers, channel members, and the companys sales force; encouraging customer comments and suggestions via toll-free telephone numbers and website forms; and gaining insight on competitive product developments through secondary data sources. One important research technique used to generate ideas is brainstorming where open-minded, creative thinkers from inside and outside the company gather and share ideas. The dynamic nature of group members floating ideas, where one idea often sparks another idea, can yield a wide range of possible products that can be further pursued.

Another way of generating ideas is buying it from talented and gifted people, who produce profitable ideas and sell it to companies. This process of producing and selling ideas is called commercialization of ideas.

Every year a number of graduates, firms and even start-up firms tend to produce and generate new and advance ideas but, they often are unable to sell or introduce them in the open markets. Resultantly they either sell those ideas to firms that are operating either outside the home country or then do not belong to the same environment. Even sometimes a number of ideas are not rewarded appropriately and the inventors are not given any particular share of the revenue generated from its idea.

The first and primary phase for the commercialization of ideas is to provide it the relative protection of copyrights and then establish a proper procedure for accessing that idea, its royalty allocation and a proper share of the inventor after utilization. Intellectual Property Organizations should provide visible and lucid guidelines of registering an idea produced, either by an individual, group of individuals, or then an organization and the benefits they can get from the registration of those ideas. After


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registering various ideas regarding products, services the same ideas should be sold in the open market, called as market place for ideas. It is an idea that tends to generate revenue and not a product or service, as a tangible or intangible product is basically the prototyped and developed form of an idea. Thus if it is a bit difficult to produce some tangible goods then developing and selling of ideas can be fruitful.

The Governments need to encourage the firms to produce new ideas in different fields, and all the service organizations to conduct research and development activities and produce ideas that can surely lead to some economic activities and investments.

Another focus, for selling ideas, should be on the Investors. In product market we often have a buyer and a seller, but in market place for ideas we have an inventor and an investor. These two components can join to form a market place for ideas. Encouraging investors to invest in ideas, if feasible, will encourage inventors independently and an additive advantage that society can get will be a boom in economic activities. In the same way, we need to design a proper system in which all the registrants of ideas should get some rewards for their contribution in some way. After taking all those necessary measures then a response from the inventors can be expected, as the main idea behind the selling of an Idea is to make money.


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Case Study

Read carefully the case and answer the questions given at the end.

Titan, the market leader, has offerings for various market segments. Pricing and positioning strategies play an important role in appealing to the respective target segment. Titan has Insignia, Classique and Sonata as some of its brands. It also has Fastrack priced between Rs. 900 and Rs. 1,500. One of the problems facing a watch marketer is the problem of cannibalisation across price points. Timex introduced Basics (Rs. 450) at the lowest end. Timex's Vista, Aquara and Lextra contribute to almost three fourths of Timex's sales (These brands start from Rs. 500 onwards). It is very likely that sub-brands of the brand may cannibalise each other. Titan's Sonata and Classique ranges have similar designs. The Sonata range extends from Rs. 400 to over Rs. 1,200.

Questions: Develop segmentation and positioning plan for Sonata covering the following aspects:

(a) Market Segmentation

(b) Positioning

(c) Marketing Mix

Solution:

a) Market Segmentation:

The market for any product is normally made up of several segments. A market after all is the aggregate of consumers of a given product. And, consumer (the end user), who makes a market, are of varying characteristics and buying behavior. There are different factors contributing for varying mind set of consumers. It is thus natural that many differing segments occur within a market.

Titan has realized the demand of the society and has marketed its products for each of the following social segment.

Fashion statement, segmentation is done on the bases of fashion, so Titan has Royale, Aurum, and Nebula for this segment.

Price Segment, price matter for customers, and in this range, Titan has Raga, Technology, and Fast track etc.

Product Segment, Just a device to show the time, and in this segment Titan has Timex, Sonata, and Karishma etc.


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Segmentation plans for Sonata can be based on demographic factors, these include:

Age segment: Segmentation is done on the basis of ages of customers. For this segmentation, Titan has segmented its product according to different age groups.

For the age group 12-20, brands like Sonata, for the age group 18-30, brands like Fast Track, Technology, and Sonata. For the age group 30-55, brands like Sonata, Nebula, Raga, Steel, Regalia, and Bandhan etc.

Gender Segment: in this segmentation Titan has Flip for Gentlemen, Raga for Ladies and Bandhan for Married couples.

Income Segment: On the basis of Income Groups; Generation plays a major role in segmenting markets. Titan developed many products for new generations like Fast Track, Technology, and Flip etc.

b) Positioning

Positioning is a concept in marketing which was first popularized by Al Ries and Jack Trout in their bestseller book Positioning a battle for your mind". According to them Positioning is what you do to mind of the prospect. They iterate that any brand is valued by the perception it carries in the prospect or customer's mind. Each brand has thus to be 'Positioned' in a particular class or segment. Example: Mercedes is positioned for luxury segment, Volvo is positioned for safety.

The position of a product is the sum of those attributes normally ascribed to it by the consumers its standing, its quality, the type of people who use it, its strengths, its weaknesses, any other unusual or memorable characteristics it may possess, its price and the value it represents.

The main positioning strategy is to either developing or reinforcing a particular image for the brand in the mind of the customer. The main approaches to positioning strategy are:-

Customer benefits approach. The price-quality approach. The use or application approach. The product user approach. The product class approach. The cultural symbol approach. The competitor approach.

Titan can use all these approaches to position its products, but if I was asked to choose one or two that would have been;


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1) Customers benefit approach: This is an important positioning strategy. It involves putting the brand above competitors, based on specific brand attributes and customer benefit. In this approach Titan gives emphasis on different technical aspects such appearance, battery life, and performance etc. Generally marketers identify positioning in respect of product characteristics that have been ignored by the competitor.

2) Price quality approach: Sometimes brands attempts to offer more in term of service, feature, quality, or performance. Manufacturer of such brands charge higher prices partly to cover the cost and partly to communicate the fact that they are of high quality. In fact in the same product category there are brands, through comparable in qualities, which appeal on the basis of price. For example brands like Rado and Timex use quality and price positioning technique respectively. Rado competes for quality and Timex competes for price. It is difficult to use both quality and price positioning together because there is a risk that high quality-low price positioning technique may infer the image of the product in the mind of the consumer.

c) Marketing Mix: Marketing mix is a combination of marketing tools that are used to satisfy customers and company objectives. Consumers often call the marketing mix the offering. This is controlled by the following variables often referred to as the four Ps in marketing: Product, Price, Place (Distribution), Promotion

For Titan, its marketing mix consists of:

Products: in this variable Titans has products that include Timex's Vista, Aquara and Lextra, Sonata, Fasttrack, Karishna, Classique, Raga, Exacta, Royale, Nebula, Bandhan and more.

Price: Titans prices varies from Rs 450 to Rs 1500 and onwards.

Place: Titans distribution channels include; Titan Showrooms, time zone, traditional and nontraditional outlets. It distributes products in about fifty countries around the world.

Promotion: Titan uses different types of promotions, including sales promotion, Advertising on Televisions, Printed media, and through the internet, and public relations.


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Assignment C

(1) Who is at the top of the customer pyramid?

a) Client ( ) b) Partner c) Supporter d) Advocate

(2) What does A,I,D,A in AIDA model stand for?

a) Attention, interest, development, action b) Attention, interest, desire, action ( ) c) Attention ,importance, design, action d) Attraction, interest, desire, action

(3) Whose slogan is connecting people?

a) Samsung b) Nokia ( ) c) Motorola d) BSNL

(4) Name the personality who coined the term 'Marketing Myopia'?

a) Patrick Drucker b) Peter Drucker c) James Dunken d) Patrick Samuels

N.B: None of above is right; Marketing Myopia was coined by Theodore Levitt.

(5) In marketing STP stands for

a) Segmentation, transportation and pathways b) Specialisation,Targeting and Production c) Segmentation, Targeting and Positioning ( ) d) Segmentation, Targeting and Production

(6) Under which cell would SBU's (Strategic Business Units) with high growth rate but low relative market share come under?

a) Dogs b) Cash Cows c) Stars d) Question Marks ( )


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(7) According to Kotler, consumers may have a strong need, a need which cant be satisfied by an existing product. He cites the examples of harmless cigarettes etc. as examples of this type of demand. What did he term the demand as?

a) Latent Demand b) Fusion Demand c) Surface demand d) Pool demand ( )

(8) When a company acquires a supplier through an acquisition strategy, this is referred as:

a) Horizontal integration b) Forward integration. c) Vertical marketing system. ( ) d) Backward integration

(9) Introducing new products to existing markets is an example of

a) Concentric diversification ( ) b) Vertical diversification. c) Conglomerate diversification. d) Horizontal diversification

(10) Building mutually satisfying long-term relations with key parties in order to earn and retain their business is called

a) holistic marketing b) Relationship marketing ( ) c) network marketing d) internal marketing e) alternative marketing

(11) Which of the following best defines marketing?

a) The maximization of company sales. b) improving the market share of organizations c) matching the resources of organizations with identified customer needs d) increasing the profitability of buyer - supplier relationships ( )

(12) Directing a company's efforts towards serving one or more groups of customers sharing common needs or characteristics is defined as

a) Market targeting. b) Target marketing. c) Market positioning. d) Market segmentation ( )


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(13) Product positioning is about

a) Developing a product. b) Developing a perception of the product/service. c) Product quality decisions. ( ) d) The perception of the product from the view of the competitors.


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(14) The three step process within marketing segmentation includes

a) Segmentation, differentiation and positioning. b) Targeting, Segmentation, and Positioning c) Segmentation, Targeting and Positioning. ( ) d) Positioning, Mass Marketing and Segmentation.

(15) The definition of market segmentation can best be described as

a) Identifying the distinct profile of a portion of the population, based upon a number of characteristics.

b) Identifying the distinct profile of a portion of the population, based upon a single characteristic.

c) A means of identifying sub groups from the larger population based upon clearly identified common traits and characteristics ( )

(16) Who are marketing intermediaries?

a) Firms that help the company promote, sell, and distribute its goods to final buyers ( )

b) Wholesalers c) Competitors that come between a company and its customers d) Retailers

(17) The main aim of global marketing is to:

a) Coordinate the marketing activities within the constraints of the global environment.

b) Satisfy global customers better than competition. ( ) c) Find global customers. d) Achieve all of the above.

(18) Which of the following represents a company's effort to identify and categorize groups of customers and countries according to common characteristics?

a) Global targeting. ( ) b) Global market segmentation. c) Global positioning. d) Global marketing research

(19) With the globalization of markets, the tastes and preferences of consumers world-wide are:

a) Becoming similar to the tastes and preferences of American consumers. b) So different that they can be ignored by international organizations. c) Converging upon a global norm. ( )


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d) Being encouraged by multinational organizations to become increasingly similar.

(20) Introducing new products to existing markets is an example of:

a) concentric diversification ( ) b) Vertical diversification. c) Conglomerate diversification. d) Horizontal diversification

(21) For a demand to exist in the market the customer should possess

a) willingness to buy b) Ability to buy c) purchasing power to buy d) all of the above ( )

(22) Which of the following is not the basis of segmentation

a) psychographic basis b) geographic basis c) demographic basis d) biographic basis ( )

(23) In Product Life Cycle price skimming can be used in which stage

a) maturity stage ( ) b) initial stage c) growth stage d) decline stage

(24) Product Line Length is

a) set of all products in the company Product lines b) set of all products in the product mix ( ) c) set of all products in the product line of a company d) set of all products in the product depth

(25) Societal marketing is

a) marketing your product according to social norms ( ) b) marketing for the social cause c) marketing for the profit by social activities d) marketing for a cause not for profit

(26) Single Marketing Mix is used by

a) concentrated marketing b) diversified marketing


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c) niche marketing ( ) d) direct marketing

(27) Which one of the following is not the tool of Direct marketing?

a) e-mail b) catalogues c) newspaper d) (d) sms ( )

(28) A customer becomes price sensitive when

a) Sellers are many and the demand is inelastic b) Buyers are few and demand is elastic c) Buyers are few and demand is inelastic d) Sellers are many but demand is elastic ( )

(29) Which of the following is correct

a) marketers can create need in the market b) need preexists marketers ( ) c) marketers can shape needs d) none of the above

(30) ___________ competition means all other products which could be bought by the same money.

a) Brand ( ) b) Form1 c) Generic d) Level

(31) The 1st P of marketing mix is ____________.

a) Product ( ) b) Price c) Promotion d) Place

(32) The "Place" P of marketing mix offers customers.

a) Communication b) Solution c) Convenience d) Competition ( )

(33) In _______________ concept, product is the focal point of attention.

a) Marketing ( )


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b) Selling c) Production d) product

(34) _______________ is to get the maximum possible cash flow from the business with an end objective of closing down or selling off the business.

a) Harvesting b) Divesting c) Building ( ) d) protecting


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(35) ____________is when business enjoys positive cash flow.

a) Dog b) Star ( ) c) Cash cow d) Question Mark

(36) ____________ is where the company diversifies into product lines which are totally unrelated in terms of technology required, customers served, etc.

a) Concentric growth b) Horizontal ( ) c) Conglomerate diversification

(37) In terms of the BCG growth-share matrix, businesses in high-growth industries with low market shares are termed as _____________.

a) stars b) Cash cows c) Question marks ( ) d) Wolves e) Dogs

(38) ___________ Sources means family, friends, neighbours, acquaintances.

a) Commercial b) Experiential c) Personal ( )

(39) ____________ is a person whose views or advice caries some weight in making the final decision.

a) Initiator b) Influencer c) Decider ( )

(40) _______________ in sample selection is an important characteristic to ensure a representative sample.

a) Randomness ( ) b) Validity c) Reliability d) continuity

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