Marketing Management MKT 501
Subjective Questions
(Past Papers)
1- You are going to purchase PC. Which channel of distribution you will use to purchase? (3 marks)
Answer:
After a product is manufactured by a supplier/factory, it is typically stored in a distribution company's warehouse. The product is then sold to retailers or customers. I will buy the PC from the retailer as well as I can also place an order via mail or telephone.
2- What are those constructs which link input and output actions in the customer decision making process according to Howard and Sheath? (3 marks)
Answer:
Between the inputs and outputs are the 'constructs', the processes which the consumer goes through to decide upon his or her actions. Howard and Sheth group these into two areas:
1. Perceptual - those concerned with obtaining and handling information about the product or service2. Learning - the processes of learning that lead to the decision itself
3- The term Publicity and Public relation are interchangeable. Do you agree? (5 marks)
Answer:
Publicity is a tool of public relations. Whereas public relations are the management of all communication between the client and selected target audiences, publicity is the management of product- or brand-related communications between the firm and the general public. It is primarily an informative activity (as opposed to a persuasive one), but its ultimate goal is to promote the client's products, services, or brands.
4- Internal analysis is used to evaluate the strength and weaknesses of company's internal environment. What factors a company need to evaluate while doing internal analysis? (5 marks)
Answer:
STRENGTHS AND WEAKNESSES
• Resources: financial, intellectual, locational
• Customer Service
• Efficiency
• Competitive Advantages
• Infrastructure
• Quality
• Staff
• Management
• Price
• Distribution Channels and Hours of operations
• After sales service and Sales promotion techniques
• Transportation and Delivery time
• Diversified fields, Product line and multiple services/offers (Technical, Commercial, Designing &
Turnkey Projects etc )
Also prepare this.
OPPORTUNITIES AND THREATS
• Competitors' actions
• Economic conditions
• Interest rates
• Increasing market saturation
• Changes in laws and regulations
1. Define consumer behavior what is the main focus for marketers to study CB? 3
Answer:
It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics, and behavioral 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.
The main focus for the marketers to study of CB1. How people buy?
2. What they buy?
3. When they buy?
4. And why they buy?
2. From where will you decide to buy your personal computer? 3
Answer:
After a product is manufactured by a supplier/factory, it is typically stored in a distribution company's warehouse. The product is then sold to retailers or customers. I will buy the PC from the retailer as well as I can also place an order via mail or telephone.
3. How does retailer do and get benefit from price discrimination? 5
Answer:
Alternatively, there can be price discrimination for a variety of reasons. The retailer charges higher prices to some customers and lower prices to others. For example, a customer may have to pay more if the seller determines that he or she is willing to. The retailer may conclude this due to the customer's wealth, carelessness, lack of knowledge, or eagerness to buy.
Price discrimination can lead to a bargaining situation often called haggling — a negotiation about the price. Economists see this as determining how the transaction's total surplus will be divided into consumer and producer surplus. Neither party has a clear advantage, because the threat of no sale exists, whence the surplus vanishes for both.
4. What is the purpose of advertising? 5
“Advertising, generally speaking, is the promotion of goods, services, companies and ideas, usually performed by an identified sponsor”.
1. The purpose of adverts are to make people aware
2.to inform
3.to persuade
4.to remind
• To attract new buyers and try to expand customer base.
• To compete in the market.
• To create an organization's recognition among consumers.
• To promote subsidiary or products manufactured by the same company.
• To bring into notice the changes, special offers or current developments of the interest of the consumers.
• To increase the sale of a particular product.
• To carry out public relations and public service program.
Difference between qualitative and quantitative market research. 3 marks
Answer:
QUALITATIVE MARKETING RESEARCH
Qualitative research is a set of research techniques, used in marketing and the social sciences, in which data are obtained from a relatively small group of respondents and not analyzed with statistical techniques. This differentiates it from quantitative research in which a large group of respondents provide data that are statistically analyzed.
QUANTITATIVE MARKETING RESEARCH
Quantitative marketing research is the application of quantitative research techniques to the field of marketing. It has roots in both the positivist view of the world, and the modern marketing viewpoint that marketing is an interactive process in which both the buyer and seller reach a satisfying agreement on the "four P's" of marketing: Product, Price, Place (location) and Promotion.
Consumer's behaviour enviornment function 3 marks
Answer:
MODELS OF CONSUMER BEHAVIOR
One of the best known of the explanatory 'lain the interactions involved are that of Howard and Sheth. This contains a deal of common sense, although, as is often the case with such models, the rather obscure terminology makes it appear more confusing than it really is. The 'inputs' (stimuli) that the consumer receives from his or her environment are:
1. Significative - the 'real' (physical) aspects of the product or service (which the company make use of)2. Symbolic - the ideas or images attached by the supplier (for example by advertising)
3. Social - the ideas or images attached to the product or service by 'society' (for example, by reference groups)
Vertical and horizontal marketing define two situation are give 5 marks
VERTICAL MARKETING
This relatively recent development integrates the channel with the original supplier - producer, wholesalers and retailers working in one unified system. This may arise because one member of the chain owns the other elements (often called `corporate systems integration'); a supplier owning its own retail outlets, this being 'forward' integration. It is perhaps more likely that a retailer will own its own suppliers, this being 'backward' integration. (For example, MFI, the furniture retailer, owns Hygena which makes its kitchen and bedroom units.) The integration can also be by franchise (such as that offered by McDonald's hamburgers and Benetton clothes) or simple co-operation (in the way that Marks & Spencer co-operates with its suppliers).
HORIZONTAL MARKETING
A rather less frequent example of new approaches to channels is where two or more non-competing organizations agree on a joint venture - a joint marketing operation - because it is beyond the capacity of each individual organization alone. In general, this is less likely to revolve around marketing synergy.
Being a market manager why you want to tv ads after place the product give your arrguments 5 marks
Answer:
Many Television Commercials feature Catchy Jingles (songs or melodies) or catch-phrases that generate sustained appeal, which may remain in the minds of television viewers long after the span of the advertising campaign.
For Catching Attention of consumers, communication agencies make wide use of humor. In fact, many psychological studies tried to demonstrate the effect of humor and indicate the way to empower advertising persuasion. Animation is often used in commercials. .What are the tactics of Supply Chain Management in their role? 5 marks
Answer:
Tactical Activities
• Sourcing contracts and other purchasing decisions.
• Production decisions, including contracting, locations, scheduling, and planning process definition.
• Inventory decisions, including quantity, location, and quality of inventory.
• Transportation strategy, including frequency, routes, and contracting.
• Benchmarking of all operations against competitors and implementation of best practices throughout the enterprise.
• Milestone Payments
What are the differences in marketing or sales? 5 Marks
Many people mistakenly think that selling and marketing are the same - they aren't. You might already know that the marketing process is broad and includes all of the following:
- Discovering what product, service or idea customers want.
- Producing a product with the appropriate features and quality.
- Pricing the product correctly.
- Promoting the product; spreading the word about why customers should buy it.
- Selling and delivering the product into the hands of the customer.
Selling is the act of persuading or influencing a customer to buy (actually exchange something of value for) a product or service.
Marketing activities support sales efforts. Actually, they are usually the most significant force in stimulating sales. Oftentimes, marketing activities (like the production of marketing materials and catchy packaging) must occur before a sale can be made; they sometimes follow the sale as well, to pave the way for future sales and referrals.
Summary
1. Sales target on individuals or small groups. Marketing on the other hand targets a larger group o the general public.
2. Marketing means generating leads or prospects. sales means converting the leads or prospects into purchases and orders.
3. Marketing involves a longer process of building a name for a brand and pursuing the customer to buy it even if they do not need it. Where as sales only involve a short term of finding the target consumer.
What is the scope of quantitative research?
Answer
SCOPE AND REQUIREMENTS
Both descriptive and inferential statistical techniques can be used to analyze data and draw conclusions. It involves a quantity of respondents sometimes ranging in number from ten to ten million, and may include hypotheses, random sampling techniques to enable inference from the sample to the population. Marketing research may include both experimental and quasi-experimental research designs.
What do you think that what you have negotiation skills? What are the benefits of negotiation?
Answer
Speedy and informal resolution of disputes; generally less stressful
Confidentiality and the avoidance of publicity
May improve communication between parties thereby preserving or enhancing relationships between parties
High degree of party control:
Parties create own process and craft own agreement
Legal and/or other standards of fairness can be used in crafting agreements
Agreement binds parties
Process voluntary (except where mandated by contract or legislation)
Risk-free: communications are without prejudice and if no agreement reached, parties can pursue other options
What are Inbound and outbound activities of retailers?
Answer
Retailing consists of the sale of Goods/Merchandise for Personal or Household Consumption either from a fixed location such as a department store or kiosk.
In Commerce, a retailer buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells individual items or small quantities to the general public or end user customers, usually in a shop, also called store.
Retailers are at the end of the Supply Chain. Marketers see retailing as part of their overall Distribution Strategy.
Shops may be
• In Residential Streets,
• In Shopping Streets with little or no houses,
• Or in a Shopping Centre.
Shopping streets may or may not be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation.
Shopping is buying things, sometimes as a Recreational Activity. Cheap versions of the latter are window shopping (just looking, not buying) and browsing.
The four major activities carried out by retailers are:
- Arrange for assortment of offerings
- Breaking quantity
- Holding stock
- Extending services
Answer:
Toward the end of the 20th century, the advent of the World Wide Web marked the first era in which any individual could have a means of exposure on a scale comparable to that of mass media. For the first time, anyone with a web site can address a global audience, although serving to high levels of web traffic is still relatively expensive. It is possible that the rise of peer-to-peer technologies may have begun the process of making the cost of bandwidth manageable. Although a vast amount of information, imagery, and commentary (i.e. "content") has been made available, it is often difficult to determine the authenticity and reliability of information contained in (in many cases, self-published) web pages. The invention of the Internet has also allowed breaking news stories to reach around the globe within minutes. This rapid growth of instantaneous, decentralized communication is often deemed likely to change mass media and its relationship to society. "Cross-media" means the idea of distributing the same message through different media channels. A similar idea is expressed in the news industry as "convergence". Many authors understand cross-media publishing to be the ability to publish in both print and on the web without manual conversion effort. An increasing number of wireless devices with mutually incompatible data and screen formats make it even more difficult to achieve the objective “create once, publish many”.
Q:1 what is the purposes of marketing research?(3 marks)Determine the profitability of the market
- · Determine what customers want and need in the market
- · Determine if there are already products available that are popular in the market
- · Determine how the top rated websites in the market are selling the hot products that you find.
- · Back engineer the selling strategies of the most profitable websites in the market
- · Determine which websites dominate your market and why
- · Determine how the most popular websites in the market make money
- · Determine profit potential in the market
Q: 2 What is Transfer price and Sale Price? 3 Marks
Answer
Transfer Price
The price that is assumed to have been charged by one part of a company for products and services it provides to another part of the same company, in order to calculate each division's profit and loss separately.
The price of a good or service that is being offered at a discount. The sale price can be calculated by subtracting the discount percent from 100, converting that number into a decimal, and multiplying the decimal by the normal price of the good. For example, a good that is normally priced at $100 and currently being offered at a 10% reduction would have a sale price of $90.
Q: 3 how many ways of transmitting a marketing message using Mass Media (5 marks)
Answer
•Wall paintings
•Billboards (outdoor advertising)
•Street furniture components,
•Printed flyers
•Radio
•Cinema
•Television ads
•Web banners,
•Web popup
•Skywriting
•Bus Stop benches
•Magazines
•Newspapers
•Town criers
•Sides of buses
•Taxicab
•Musical stage shows
•Subway
•Platforms and trains
•Elastic bands on disposable diapers
•Stickers on apples in supermarkets
•The opening section of streaming audio and video
• The backs of event tickets and supermarket receipts.
Any place an "identified" sponsor pays to deliver their message through a medium is advertising.
Q: 4 Channel Members are important for a company how a company can motivate their channel Members ( 5 Marks)
CHANNEL MOTIVATION
It is difficult enough to motivate direct employees to provide the necessary sales and service support.
Motivating the owners and employees of the independent organizations in a distribution chain requires even greater effort. There are many devices for achieving such motivation. Perhaps the most usual is `bribery': the supplier offers a better margin, to tempt the owners in the channel to push the product rather than its competitors; or a competition is offered to the distributors' sales personnel, so that they are tempted to push the product. At the other end of the spectrum is the almost symbiotic relationship that the all too rare supplier in the computer field develops with its agents; where the agent's personnel, support as well as sales, are trained to almost the same standard as the supplier's own staff.
Q: 5 what is the difference of Experimental technique and Observational Technique in Marketing Research (5 Marks)
MARKETING RESEARCH METHODS
Methodologically, marketing research uses four types of research designs, namely:
• Qualitative Marketing Research - generally used for exploratory purposes - small number of respondents - not generalizable to the whole population - statistical significance and confidence not calculated - examples include focus groups, in-depth interviews, and projective techniques.
• Quantitative Marketing Research - generally used to draw conclusions - tests a specific hypothesis - uses random sampling techniques so as to infer from the sample to the population - involves a large number of respondents - examples include surveys and questionnaires.
• Observational Techniques - the researcher observes social phenomena in their natural setting - observations can occur cross-section ally (observations made at one time) or longitudinally (observations occur over several time-periods) - examples include product-use analysis and computer cookie traces.
• Experimental Techniques - the researcher creates a quasi-artificial environment to try to control spurious factors, and then manipulates at least one of the variables - examples include purchase laboratories and test markets.
Researchers often use more than one research design. They may start with secondary research to get background information, and then conduct a focus group (qualitative research design) to explore the issues. Finally they might do a full nation-wide survey (quantitative research design) in order to devise specific recommendations for the client.
2. Advantage of publicity. 3
Answer
The advantages of publicity are
• Low cost
• And credibility (particularly if the publicity is aired in between news stories like on evening TV news casts).
The disadvantages are lack of control over how releases will be used, and frustration over the low percentage of releases that are taken up by the media.
Publicity draws on several key themes including
• Birth
• Love
• And death.
These are of particular interest because they are themes in human lives which feature heavily throughout life. In television serials several couples have emerged during crucial ratings and important publicity times, as a way to make constant headlines. Also known as a publicity stunt, the pairings may or may not be truthful.
3. What is length of channel, structure of different channels? 5
Answer:
CHANNEL STRUCTURE
To the various `levels' of distribution, which they refer to as the `channel length'.
• Conventional or free-flow - This is the usual, widely recognized, channel with a range of `middlemen' passing the goods on to the end-user.
• Single transaction - A temporary `channel' may be set up for one transaction; for example, the sale of property or a specific civil engineering project. This does not share many characteristics with other channel transactions, each one being unique.
• Vertical marketing system (VMS) - In this form, the elements of distribution are integrated.
5. What are the effective advertisements? 5
Answer
The TV commercial is generally considered the most effective mass-market advertising format and this is reflected by the high prices TV networks charge for commercial airtime during popular TV events.
TYPES OF TV COMMERCIALS•Political TV advertising
•Infomercials
•Product placement
•Network or local station promotional advertising (also known as promo)
•Television commercial donut
•Sponsorship
1- Why do companies require integrated marketing communications? (Marks=3)
Answer
INTEGRATED MARKETING COMMUNICATIONS
Definition:
A management concept that is designed to make all aspects of marketing communication such as advertising, sales promotion, public relations, and direct marketing work together as a unified force, rather than permitting each to work in isolation.
A MODEL FOR INTEGRATED MARKETING
Integrated Marketing Communication is more than the coordination of a company's outgoing message between different media and the consistency of the message throughout. It is an aggressive marketing plan that captures and uses an extensive amount of customer information in setting and tracking marketing strategy.
4- List down at least five advantages of sales promotion. (Marks=5)
1. Price discrimination:
Producers can introduce price discrimination through the use of sales promotions. They can charge different prices to different consumers and trade segments depending on how sensitive each segment is to particular prices.Coupons, special sales events, clearance sales and discounts are examples to explain the phenomenon.
Often such price discrimination are offered in specific cities in the country,Bajaj Auto Ltd. started the scheme on 20th august 2001, where by if you buy a Bajaj Spirit two-wheeler you get Rs.3000/- off, valid only in Ahmedabad.
2. Effect on consumer behaviour:
As sales promotions are mostly announced for a short period, customers may feel a sense of urgency and stop comparing the alternatives. They are persuaded to act now rather than later.With every 500g pack of Tang, you get a free Tang glass. Offer valid only till stocks last.
3. Effect on trade behaviour:
4. Encourage Repeat Purchases
5. Providing Information
6. Increase the short term sale through discount
5- Electronic media and Print media can take many forms. Explain any five of the various forms of electronic and print media. (Marks=10)
FORMS
Electronic media and print media include:
•Broadcasting, in the narrow sense, for radio and television.
•Various types of discs or tape. In the 20th century, these were mainly used for music. Video and computer uses followed.
•Film, most often used for entertainment, but also for documentaries.
•Internet, which has many uses and presents both opportunities and challenges. Blogs and podcasts, such as news, music, pre-recorded speech and video)
•Publishing, in the narrow sense, meaning on paper, mainly via books, magazines, and newspapers.
•Computer games, which have developed into a mass form of media since devices such as the PlayStation 2
, Xbox, and the Gamecube broadened their use.
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