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Principles of Marketing Solved Question Paper 2022 Pdf
2022
COMMERCE
(Honours)
Paper: COM-HC-5016
(Principles of Marketing)
Full Marks: 80
Time: Three hours
The figures in the margin indicate full marks for the questions.
1.Answer the following as directed: (any ten) 1×10=10
(i) Which of the following is not included in psychographic segmentation of markets?
(a) Personality
(b) Lifestyle
(c) Attitude
(d) Culture
(ii) Which one of the following is related to micro-environmental forces?
(a) Demographic
(b) Marketing intermediaries
(c) Economic
(d) Socio-cultural
(iii) Television is an example of
(a) emergency goods
(b) convenience goods
(c) shopping goods
(d) impulse goods
(iv) Consumer behaviour is affected by
(a) family
(b) age
(c) income
(d) All of the above
(v) Sales promotion activities are conducted by
(a) producers
(b) wholesalers
(c) retailers
(d) government
(vi) Which one of the following is not a component of product planning?
(a) product innovation
(b) product diversification
(c) product standardisation
(d) product branding
(vii) Which one of the following is not an advertising goal ?
(a) Attention
(b) Desire
(c) Adoption
(d) Action
(viii) Product simplification is the process of
(a) increasing the product line
(b) changing the product line
(c) reducing the product line
(d) amending the product line
(ix) Which one of the following is included in sales promotion ?
(a) Personal selling
(b) Exhibition
(c) Advertising
(d) Publicity
(x) Which one of the following is not an uncontrollable factor of marketing environment ?
(a) Economic growth
(b) Level of education
(c) Marketing mix
(d) Price policy
(xi) The strategic use of a brand's equity in which the marketer leverages the brand's good name to buy something new is
(a) co-branding
(b) brand extension
(c) line extension
(d) product extension
(xii) Form of testing markets and getting customer feedback of promising ideas is called
(a) idea generation
(b) concept testing
(c) product testing
(d) test marketing
(xiii) A company that attaches the same brand name to all of its products is called "House Brand"
(Fill in the blank)
(xiv) Under"Skimming" pricing policy, a very high price is set for a new product initially and gradually the price reduced as competitors enter the market. (Fill in the blank)
(xv) The first step in new product development is "Idea Generation"
(Fill in the blank)
(xvi) Social class, religion, race, culture etc. are significant variables for"Demographic"segmentation of markets. (Fill in the blank)
(xvii) A "Label or Product Manual"provides written information about the product, its features, composition, performance etc. (Fill in the blank)
(xviii) Segmentation of consumers based on factors like climatic zone, continent / country, region, state etc. constitute"Geographic"segmentation.
(Fill in the blank)
2. Answer the following questions : (any five) 2 x 5 = 10
(i) What is marketing environment?
Ans:- The marketing environment refers to the external factors and forces that affect a company's ability to develop and maintain successful marketing strategies. It includes both macro-environmental factors like economic, social, cultural, technological, political, and legal factors, as well as micro-environmental factors like customers, competitors, suppliers, and intermediaries. Marketers analyze the marketing environment to identify opportunities and threats that can impact their marketing decisions.
(ii) What is trademark ?
Ans:- A trademark is a legally registered symbol, word, phrase, logo, or design that represents a company's brand and distinguishes its products or services from those of other companies. Trademarks are used to protect the unique identity of a brand and to prevent others from using similar marks that could confuse consumers
(iii) What is direct marketing?
Ans:- Direct marketing is a promotional method in which companies communicate directly with individual consumers or business customers through various channels, such as email, direct mail, telemarketing, SMS, and online advertising. The goal of direct marketing is to establish a one-to-one relationship with potential customers and encourage them to take specific actions, such as making a purchase, signing up for a newsletter, or requesting information.
(iv) What is branding ?
Ans:- Branding is the process of creating a unique and recognizable identity for a product, service, or company. It involves establishing a name, logo, design, and a set of values and promises that distinguish the brand from competitors and resonate with customers. Effective branding helps build customer loyalty and trust.
(v)What is social marketing?
Ans:- Social marketing is a strategy that uses marketing techniques and principles to promote social causes, behaviors, or ideas that benefit society. Unlike commercial marketing, social marketing aims to bring about positive social change, such as encouraging people to adopt healthier lifestyles, support environmental conservation, or stop smoking.
(vi) What is green marketing?
Ans:- Green marketing, also known as environmental marketing or sustainable marketing, involves promoting products and services that are environmentally friendly or have a reduced impact on the environment. It focuses on communicating the environmental benefits of products, such as energy efficiency, recyclability, and sustainable sourcing, to appeal to environmentally conscious consumers.
(vii) What is sales promotion ?
Ans:- Sales promotion refers to a set of marketing activities and tactics designed to stimulate short-term sales of a product or service. It includes activities like discounts, coupons, contests, free samples, and limited-time offers. Sales promotions are often used to encourage customers to make immediate purchases or try new products.
(vii) What is rural marketing?
Ans:- Rural marketing is a specialized branch of marketing that focuses on reaching and serving customers in rural and remote areas. It involves adapting marketing strategies to the unique characteristics and needs of rural consumers, such as lower income levels, limited access to modern infrastructure, and different buying behaviors.
(ix) What is skimming price?
Ans:- Skimming price is a pricing strategy in which a company initially sets a high price for a new product or service when it is introduced to the market. The goal is to maximize revenue from early adopters and customers who are willing to pay a premium for the new offering. Over time, the price may be gradually lowered to attract a broader customer base.
(x) What is market segmentation ?
Ans:- Market segmentation is the process of dividing a larger market into smaller, distinct groups or segments based on shared characteristics and needs. This allows companies to tailor their marketing efforts, products, and services to the specific preferences and behaviors of each segment, increasing the effectiveness of their marketing campaigns. Segmentation criteria can include demographics, psychographics, geographic location, and more.
3. Answer any four of the following: 5×4=20
তলত দিয়াবোৰৰ যিকোনো চাৰিটাৰ উত্তৰ লিখা :
(i) Explain the distribution policies which generally adopted by the are manufacturers.
Ans:- Distribution Policies Adopted by Manufacturers:
Manufacturers adopt various distribution policies to ensure their products reach the end consumers efficiently. These policies can vary depending on the industry, product type, target market, and other factors. Here are some common distribution policies:
1. Intensive Distribution: In this approach, manufacturers aim to make their products available through as many retail outlets as possible. It is commonly used for everyday consumer goods, like snacks and beverages, where wide accessibility is crucial.
2. Selective Distribution: Manufacturers choose specific retail outlets or dealers to sell their products. This strategy is often employed for products that require specialized knowledge, customer service, or brand positioning, such as electronics or high-end cosmetics.
3. Exclusive Distribution: Exclusive distribution involves restricting the sale of a product to a limited number of carefully selected retailers. This is commonly seen in luxury brands, where exclusivity enhances the brand's image and control over the product.
4. Direct Distribution: Some manufacturers bypass intermediaries and sell their products directly to consumers. This can be done through company-owned retail stores, e-commerce websites, or direct sales representatives. It allows for better control over branding and customer experience.
5. Dual Distribution: Manufacturers may use a combination of distribution channels, such as selling directly to consumers and also through third-party retailers. This approach can help reach a broader audience while maintaining control in certain channels.
6. Franchising: In this approach, manufacturers grant the rights to independent entrepreneurs (franchisees) to sell their products under a specific brand name and business model. It is commonly used in the fast-food industry and retail.
(ii) Briefly explain the functions of packaging.
Ans:- Functions of Packaging:
Packaging serves several important functions in the marketing and distribution of products. These functions go beyond just containing and protecting the product; they also play a crucial role in branding, convenience, and consumer appeal. Here are some key functions of packaging:
1. Protection: Packaging protects the product from external factors like moisture, light, heat, and physical damage during transportation, handling, and storage. It ensures the product reaches the consumer in good condition.
2. Containment: Packaging holds the product in a convenient and organized manner, making it easier for handling, storage, and consumption.
3. Information: Packaging provides essential information about the product, including ingredients, usage instructions, nutritional facts, expiry date, and manufacturer details. This information helps consumers make informed choices.
4. Branding and Promotion: Packaging is a vital tool for brand identity and promotion. It communicates the brand's values, personality, and message through design, logos, colors, and graphics. Eye-catching packaging can attract consumers and differentiate a product from competitors.
5. Convenience: Packaging is designed to make the product easy to use and handle. Features like resealable zippers, pour spouts, and single-serving portions enhance consumer convenience.
6. Tamper Resistance: Tamper-evident packaging assures consumers that the product has not been altered or tampered with, enhancing safety and trust.
7. Environmental Considerations: Sustainable packaging practices are increasingly important. Manufacturers are adopting eco-friendly materials and designs to minimize the environmental impact of packaging.
8. Transportation and Handling: Packaging is designed to facilitate efficient handling, stacking, and transportation of products, reducing damage and logistical costs.
9. Differentiation: Packaging can help products stand out on store shelves and convey unique selling points, influencing consumer purchasing decisions.
10. Shelf Life Extension: Packaging technologies like vacuum sealing and modified atmosphere packaging can extend the shelf life of perishable products.
(iii) Explain the importance of marketing.
Ans:-(ii) The Importance of Marketing:
Marketing plays a crucial role in the success of any business or organization. It is a multifaceted process that involves various activities aimed at promoting and selling products or services to customers. Here are some key reasons why marketing is important:
1. Customer Identification: Marketing helps businesses identify their target audience and understand their needs and preferences. This allows companies to create products and services that are tailored to customer demands, increasing the chances of success in the market.
2. Brand Awareness: Effective marketing builds brand awareness and brand equity. When customers recognize and trust a brand, they are more likely to choose its products or services over competitors. Strong branding can lead to customer loyalty and long-term profitability.
3. Market Expansion: Marketing strategies can help businesses expand into new markets and reach a broader customer base. This is especially important for businesses looking to grow and increase their market share.
4. Sales and Revenue Generation: The primary goal of marketing is to generate sales and revenue. By promoting products or services effectively, businesses can boost their sales, leading to increased profits and sustainable growth.
5. Competitive Advantage: Marketing allows businesses to differentiate themselves from competitors. It enables them to highlight unique selling points, features, or benefits that set their offerings apart, giving them a competitive edge.
6. Communication: Marketing is a powerful tool for communicating with customers and conveying important information about products, services, promotions, and company values. Effective communication builds trust and fosters customer loyalty.
7. Innovation and Product Development: Through market research and customer feedback, marketing helps businesses identify opportunities for innovation and product improvement. This ensures that companies stay relevant and meet changing customer needs.
8. Adaptation to Market Changes: Markets are dynamic and subject to constant change. Marketing helps businesses adapt to these changes by adjusting strategies, targeting new customer segments, and staying responsive to shifts in consumer behavior and preferences.
GU Principles of Marketing 2022 Solved question paper
(iv) Explain the importance of market segmentation.
Ans:- The Importance of Market Segmentation:
Market segmentation is a critical component of marketing strategy that involves dividing a larger market into smaller, more manageable segments based on common characteristics or behaviors. Here's why market segmentation is important:
1. Targeted Marketing: Market segmentation allows businesses to tailor their marketing efforts to specific customer segments. This targeted approach increases the relevance of marketing messages, making them more likely to resonate with potential customers.
2. Efficient Resource Allocation: By identifying and focusing on the most promising market segments, businesses can allocate their resources (such as advertising budget and sales efforts) more efficiently. This helps maximize return on investment and reduce wastage.
3. Improved Product Development: Understanding the unique needs and preferences of different segments enables businesses to develop products or services that better meet those specific requirements. This can lead to increased customer satisfaction and loyalty.
4. Competitive Advantage: Effective market segmentation can give a company a competitive edge by allowing it to offer customized solutions that competitors may not be providing to the same extent.
5. Enhanced Communication: Segmentation enables businesses to craft more compelling and relevant marketing messages for different groups of customers. This can lead to better engagement and improved communication with the target audience.
6. Risk Reduction: Diversifying marketing efforts across multiple segments can reduce the risk associated with relying heavily on a single market. If one segment faces challenges, others may still provide revenue and stability.
(v) Explain the advantages of packaging.
Ans:- Advantages of Packaging:
Packaging plays a crucial role in marketing and product presentation. It goes beyond simply containing a product and offers several advantages:
1. Protection: Packaging protects products from damage, contamination, and spoilage during transportation, storage, and handling. This ensures that products reach consumers in a safe and intact condition.
2. Preservation: Packaging can extend the shelf life of perishable goods by providing a barrier against external factors like air, moisture, and light. This helps reduce waste and allows products to be stored for longer periods.
3. Information: Packaging often includes product labels, instructions, and nutritional information, which helps consumers make informed purchasing decisions. It also provides branding and messaging opportunities, enhancing brand recognition.
4. Convenience: Packaging can be designed for ease of use and convenience. It may include features such as resealable closures, portion control, and easy-to-open packaging, improving the overall user experience.
5. Differentiation: Unique and attractive packaging can make a product stand out on store shelves and capture consumers' attention. It can influence purchase decisions and help build brand identity.
6. Marketing and Promotion: Packaging serves as a silent salesman on the retail shelf. Eye-catching packaging design and branding can attract customers and convey key marketing messages effectively.
7. Environmental Considerations: Eco-friendly packaging options, such as recyclable materials and reduced packaging waste, can enhance a company's reputation and appeal to environmentally conscious consumers.
8. Safety and Compliance: Packaging must adhere to safety standards and regulations. Proper labeling and packaging design can help ensure that products are used correctly and safely.
(vi) Explain the significance of channels of distribution in marketing.
Ans:- Significance of Channels of Distribution in Marketing:
1 Channels of distribution play a crucial role in marketing by facilitating the movement of products or services from producers to consumers. Their significance can be understood through the following points:
2.Reach and Accessibility: Channels of distribution help products reach a wider audience. They enable companies to access geographically dispersed markets efficiently, making products available to customers in various locations.
3.Convenience: Channels of distribution make it convenient for customers to access products. Whether through physical stores, e-commerce websites, or other means, customers can easily find and purchase what they need.
4.Cost Efficiency: Distribution channels can help in reducing distribution costs through economies of scale. Centralized distribution centers and bulk shipments can lead to cost savings compared to individual sales efforts.
5.Specialization: Distributors and retailers often specialize in certain types of products or industries. This specialization can lead to improved product knowledge and better service for customers.
6.Market Expansion: Companies can use distribution channels to enter new markets or expand their presence in existing ones. Local distributors or retailers can help adapt products to local preferences and navigate regulatory requirements.
7.Risk Mitigation: Relying on multiple distribution channels can help companies diversify risk. If one channel encounters difficulties, others may still be operational, ensuring continued product availability.
8.Brand Building: Channels can be instrumental in building brand visibility and recognition. Retailers, for example, can help promote a brand through in-store displays and marketing efforts.
9.Feedback Loop: Channels can provide valuable feedback on customer preferences and market trends. This information can be used to refine products and marketing strategies.
(vii) Explain the significance of the study of consumer behaviour.
Ans:- Significance of the Study of Consumer Behavior:
The study of consumer behavior is of paramount importance in marketing and business for several reasons:
1.Understanding Preferences: Consumer behavior research helps businesses understand what consumers want, need, and desire. This insight enables the development of products and services that are better aligned with consumer preferences.
2.Market Segmentation: By analyzing consumer behavior, companies can identify distinct market segments with varying needs and preferences. This allows for targeted marketing efforts and the customization of products and services for different segments.
3.Marketing Strategy Development: Consumer behavior insights inform the creation of effective marketing strategies. Businesses can tailor their messaging, advertising, and promotions to resonate with specific consumer groups.
4.Product Development: Businesses can use consumer behavior research to design and refine products. This ensures that products not only meet functional needs but also align with consumer perceptions and aspirations.
5.Competitive Advantage: Understanding consumer behavior can provide a competitive edge by anticipating market trends and staying ahead of competitors in meeting evolving consumer demands.
6.Pricing Strategies: Consumer behavior research helps determine optimal pricing strategies. It provides insights into how consumers perceive value and how price changes may affect buying decisions.
7.Customer Retention: Knowledge of consumer behavior is crucial for retaining customers. By understanding what drives loyalty and satisfaction, businesses can improve customer service and build lasting relationships.
8.Risk Management: Businesses can mitigate risks associated with consumer behavior, such as economic downturns or shifts in consumer preferences, by staying informed and adaptable.
GU Principles of Marketing 2022 Solved question paper
(viii) Explain the advantages of direct marketing.
Ans:- Advantages of Direct Marketing:
Direct marketing is a marketing strategy where companies communicate directly with customers through various channels without intermediaries. Some advantages of direct marketing include:
1..Targeted Approach: Direct marketing allows businesses to reach specific, well-defined target audiences. This precision minimizes wastage of marketing resources on uninterested consumers.
2.Personalization: Direct marketing can be highly personalized. Companies can tailor messages, offers, and product recommendations based on individual customer data and preferences.
3.Cost Efficiency: Compared to traditional mass marketing, direct marketing can be cost-effective. It avoids the expenses associated with middlemen and mass advertising.
4.Measurable Results: Direct marketing campaigns are often highly measurable. Companies can track responses, sales, and ROI with precision, allowing for data-driven decision-making and continuous improvement.
5.Quick Response: Direct marketing campaigns can generate quick responses from customers, enabling businesses to adapt their strategies rapidly based on real-time feedback.
6.Relationship Building: Direct marketing can foster a deeper connection with customers. By engaging in ongoing communication, companies can build trust and loyalty over time.
7.Flexibility: Direct marketing methods can be adapted to various channels, including email, social media, direct mail, and telemarketing, making it flexible and versatile.
8.Geographic Reach: Direct marketing allows businesses to reach customers regardless of their location, making it suitable for both local and global markets.
9.Control: Companies have greater control over the timing, content, and frequency of their marketing messages in direct marketing campaigns.
10.Market Testing: Direct marketing provides an opportunity to test new products, offers, or marketing strategies on a smaller scale before scaling up for a broader audience.
While direct marketing offers these advantages, it also comes with challenges, such as the need to manage customer data responsibly, address privacy concerns, and maintain a strong focus on customer relationship management to succeed in the long term.
4. Answer any four of the following: 10×4=40
(i) What is marketing mix? Explain about the '7Ps' of marketing mix. 3+7=10
Ans:- The marketing mix is a fundamental concept in marketing that refers to a set of elements or variables that a business or marketer can control to influence the demand for its products or services in the target market. Traditionally, the marketing mix consists of the "4Ps," which are Product, Price, Place, and Promotion. However, in some cases, an extended version of the marketing mix, known as the "7Ps," is used to provide a more comprehensive framework. Here are the 7Ps of the marketing mix:
1. Product: This represents the actual goods or services that a company offers to its customers. It includes aspects like product features, design, quality, branding, packaging, and product variations.
2. Price: Price refers to the amount of money customers are willing to pay for the product or service. It involves pricing strategies, discounts, pricing structures, and the perceived value of the product.
3. Place: Place, also known as distribution, concerns the channels and locations through which customers can access the product or service. It involves decisions about distribution channels, inventory management, retail locations, and online presence.
4. Promotion: Promotion encompasses all the marketing and communication activities used to inform, persuade, and remind customers about the product or service. This includes advertising, sales promotions, public relations, social media, and other promotional tactics.
5. People: People refer to the employees, staff, and personnel who interact with customers and play a role in delivering the product or service. Their knowledge, training, and customer service skills are crucial for customer satisfaction.
6. Process: Process relates to the procedures, systems, and workflows that a company uses to deliver its products or services. A streamlined and efficient process can enhance customer experience and reduce costs.
7. Physical Evidence: This element refers to the tangible and intangible cues or evidence that customers use to evaluate a product or service. It includes aspects like the physical environment (e.g., store layout), packaging, branding, and customer testimonials.
(ii) Discuss the various concepts of marketing.
Ans:- Various Concepts of Marketing:
1. Production Concept: This concept focuses on maximizing production efficiency and reducing production costs. It assumes that customers will favor products that are widely available and affordable.
2. Product Concept: The product concept emphasizes creating high-quality, innovative products and assumes that customers will seek out and buy the best products available.
3. Selling Concept: This concept emphasizes aggressive selling and promotional efforts to persuade customers to buy a product or service, even if it is not their first choice.
4. Marketing Concept: The marketing concept revolves around understanding customer needs and wants and delivering products or services that satisfy those needs better than competitors. It is customer-centric and focuses on long-term customer relationships.
5. Societal Marketing Concept: This concept extends the marketing concept by considering not only customer needs but also the well-being of society. It involves delivering value to customers while taking into account the broader social and environmental impacts.
6. Relationship Marketing: Relationship marketing focuses on building and maintaining long-term relationships with customers rather than just making one-time sales. It aims to create customer loyalty and repeat business.
7. Holistic Marketing: Holistic marketing takes a broad and integrated approach, considering all aspects of marketing, including internal marketing (marketing to employees), integrated marketing (coordinating multiple marketing channels), and performance marketing (measuring marketing ROI).
These various marketing concepts provide different perspectives on how businesses should approach marketing and customer relationships, and the choice of concept depends on the company's goals, values, and market conditions.
(iii) Discuss the different bases used for market segmentation.
Ans:- Market Segmentation Bases:
Market segmentation is the process of dividing a market into distinct groups of consumers who share similar characteristics or needs. There are several bases or criteria that can be used for market segmentation. These bases help businesses tailor their marketing strategies to target specific customer groups more effectively. Here are some common bases for market segmentation:
1. Demographic Segmentation : This involves dividing the market based on demographic factors such as age, gender, income, education, marital status, and occupation. For example, a company might target its products differently to teenagers, young adults, and senior citizens.
2. Geographic Segmentation: Geographic segmentation involves dividing the market based on geographic factors such as location, region, climate, and population density. Companies may customize their products or marketing strategies to suit the specific needs and preferences of consumers in different geographical areas.
3. Psychographic Segmentation: Psychographic segmentation considers consumers' lifestyles, values, beliefs, interests, and personality traits. It helps in creating marketing messages that resonate with consumers on a more emotional level. For instance, a brand might target environmentally-conscious consumers with eco-friendly products.
4. Behavioral Segmentation: Behavioral segmentation is based on consumer behavior, including their purchasing habits, usage patterns, brand loyalty, and decision-making processes. Companies can segment their market based on whether consumers are frequent buyers, occasional buyers, or first-time buyers.
5. Product-Based Segmentation : This involves segmenting the market based on the specific products or product categories that customers are interested in. For example, a clothing retailer may have different marketing strategies for its men's, women's, and children's clothing lines.
6. Benefit-Based Segmentation: Benefit segmentation focuses on the specific benefits or solutions that consumers seek from a product or service. It identifies different customer segments based on the unique value propositions they are looking for. For instance, a smartphone manufacturer might target segments looking for high-performance, camera quality, or budget-friendly options.
7. Usage-Based Segmentation: This segmentation is based on how often and how much a customer uses a product or service. For example, in the telecom industry, customers may be segmented into categories like light users, moderate users, and heavy users.
(iv) What is product life cycle? Explain the different stages of product life cycle. 3+7=10
Ans:- Product Life Cycle:
The product life cycle is a concept that describes the various stages a product goes through from its introduction to the market until its eventual decline and discontinuation. It helps businesses understand the dynamics of a product's performance in the market and tailor their strategies accordingly. The product life cycle typically consists of four stages:
1. Introduction: In this initial stage, a new product is introduced to the market. Sales are typically low as consumers are unfamiliar with the product. Marketing efforts focus on creating awareness and educating potential customers. Companies may incur high development and promotional costs during this stage.
2. Growth: During the growth stage, the product experiences a rapid increase in sales as more consumers become aware of it and start buying. Competition may increase, and companies may expand their product lines. Prices may stabilize, and profitability improves as economies of scale are realized.
3. Maturity: The maturity stage is characterized by a plateau in sales growth. The market becomes saturated, and competition is intense. Companies often focus on market share and customer retention during this stage. Price competition may become more significant, and companies may seek product differentiation.
4. Decline: In the decline stage, sales start to decline as the product becomes obsolete or faces competition from newer alternatives. Companies may choose to discontinue the product, reduce marketing efforts, or target a niche market. Profit margins may shrink, and eventually, the product may be phased out.
Understanding the product life cycle helps companies make informed decisions about product development, marketing strategies, pricing, and resource allocation at each stage, ensuring they maximize the product's profitability over its lifecycle.
(v) What is pricing? Discuss the factors influencing product pricing decisions.
Ans:- Pricing: Pricing is a critical element of the marketing mix and refers to the process of determining the value or monetary worth of a product or service and setting a price for it. It plays a significant role in a company's profitability, market positioning, and overall success. Pricing decisions involve a careful consideration of various factors, including:
1. Cost of Production: One of the fundamental factors in pricing is the cost of producing the product or delivering the service. This includes direct costs (materials, labor) and indirect costs (overheads, marketing expenses).
2. Competitive Analysis: A company needs to assess what prices competitors are charging for similar products or services. Pricing too high or too low in comparison to competitors can have implications on market share and profitability.
3. Customer Demand: Understanding customer demand elasticity is crucial. Products with inelastic demand (where demand remains relatively constant regardless of price changes) can often command higher prices, while products with elastic demand may require lower prices to stimulate sales.
4. Pricing Objectives: Companies set specific pricing objectives, such as maximizing profits, gaining market share, or achieving a certain return on investment. These objectives influence pricing decisions.
5. Market Positioning: Pricing can be used strategically to position a product in the market. Premium pricing can create an image of high quality, while discount pricing can attract price-sensitive consumers.
6. Perceived Value: How customers perceive the value of a product or service can greatly impact pricing decisions. Effective marketing and branding can enhance perceived value.
7. Economic Conditions: Economic factors, such as inflation, interest rates, and overall economic health, can affect pricing decisions. Inflation, for instance, may necessitate price adjustments.
8. Legal and Regulatory Considerations: Laws and regulations may restrict pricing practices in certain industries. Companies must comply with pricing-related laws, such as antitrust regulations.
9. Pricing Strategies: Companies can adopt various pricing strategies, such as skimming (setting high initial prices and gradually lowering them) or penetration pricing (setting low initial prices to gain market share).
10. Distribution Channel: The channel through which a product is sold can impact pricing. Different channels may have different markups and costs.
GU Principles of Marketing 2022 Solved question paper
(vi) Discuss the various environmental forces influencing marketing.
Ans:- Environmental Forces Influencing Marketing: Environmental forces in marketing refer to external factors and trends that can significantly impact a company's marketing strategies and decisions. These forces can be categorized into various macro-environmental factors:
1. Economic Environment: Economic conditions, such as inflation, interest rates, exchange rates, and overall economic growth, can affect consumer spending patterns and purchasing power, thereby influencing marketing strategies.
2. Technological Environment: Rapid technological advancements can create new marketing opportunities and disrupt traditional business models. Companies must adapt to emerging technologies to stay competitive.
3. Social and Cultural Environment: Societal values, beliefs, and cultural norms can influence consumer preferences, product design, and marketing messages. Companies need to be sensitive to cultural differences in their marketing efforts.
4. Demographic Factors: Population demographics, such as age, gender, income levels, and family size, can impact target market selection and product design.
5. Political and Legal Environment: Government regulations and policies, including those related to product safety, advertising, and consumer protection, can have a significant impact on marketing activities.
6. Environmental Sustainability: Growing concerns about environmental sustainability and climate change are influencing consumer preferences and driving demand for eco-friendly products and sustainable business practices.
7. Competitive Environment: The competitive landscape in an industry can affect a company's marketing strategies, pricing decisions, and positioning in the market.
8. Globalization: As businesses expand internationally, they must consider global market trends, cultural differences, and trade regulations when developing marketing strategies.
9. Technological Disruptions: Emerging technologies like artificial intelligence, blockchain, and augmented reality are changing the way companies market and interact with customers.
10. Social Media and Online Trends: The rise of social media and e-commerce platforms has transformed how companies engage with customers and market their products and services.
(vii) What is channel of distribution ? Explain the various factors which affect the choice of channel of distribution. 2+8=10
Ans:- Channel of Distribution:
A channel of distribution, also known as a distribution channel, is the path or route through which goods or services move from the manufacturer or producer to the final consumer or end-user. It encompasses all the intermediaries or middlemen involved in the process of making products or services available to the target market. These intermediaries can include wholesalers, retailers, agents, distributors, and various other entities that facilitate the movement of products or services.
Factors Affecting the Choice of Channel of Distribution:
The choice of a distribution channel is a critical decision for businesses, and it can significantly impact their success in the market. Several factors influence this choice:
1. Nature of the Product: The type of product being offered plays a significant role in determining the distribution channel. Perishable goods may require a shorter and more direct channel, while complex or expensive products might benefit from a longer channel with specialized intermediaries.
2. Target Market: Understanding the characteristics, preferences, and location of the target market is crucial. If the market is geographically dispersed, businesses may opt for multiple channels or intermediaries to reach a wider audience.
3. Competitive Environment: Analyzing the strategies of competitors and their distribution channels can provide insights. A company may choose to emulate or differentiate its channel strategy based on what competitors are doing.
4. Company Resources: The financial, logistical, and organizational resources of a company play a significant role. Smaller businesses may rely on existing intermediaries, while larger companies might establish their distribution networks.
5. Product Lifecycle: The stage of the product's lifecycle can influence the choice of distribution channel. During the introduction phase, a company might use exclusive or selective distribution, while in the maturity phase, broader distribution may be more appropriate.
6. Costs: The costs associated with each distribution channel must be considered. This includes transportation, storage, marketing, and intermediary margins. Businesses seek to balance these costs with the revenue generated.
7. Regulatory Environment: Legal and regulatory factors, such as import/export restrictions or industry-specific regulations, can limit or dictate the choice of distribution channels.
8. Consumer Preferences: Understanding how consumers prefer to access products or services is crucial. Some consumers prefer the convenience of online shopping, while others prefer to buy in physical stores.
9. Product Customization: If products need customization or personalization for each customer, a direct channel may be more suitable to maintain control over the process.
10. Channel Partnerships: Collaborative relationships with intermediaries can influence the choice of distribution channel. Exclusive partnerships, for example, can limit the options available.
(viii) Discuss the various factors that influence consumer behaviour.
Ans: Factors Influencing Consumer Behavior:
Consumer behavior is a complex process influenced by various factors, both internal and external. Understanding these factors is essential for businesses to develop effective marketing strategies. Here are some key factors that influence consumer behavior:
1. Psychological Factors:
- Motivation: The underlying needs and desires that drive a consumer to make a purchase.
- Perception: How consumers interpret and make sense of information about products or brands.
- Attitude: The overall evaluation and emotional response towards a product or brand.
- Learning and Memory: Past experiences and knowledge that affect decision-making and brand loyalty.
2. Social Factors:
- Reference Groups: The influence of family, friends, and social groups on consumer choices.
- Culture and Subculture: The impact of cultural values, norms, and subcultures on consumer preferences.
- Social Class: The social and economic class to which a consumer belongs can influence their buying behavior.
3. Personal Factors:
- Age and Life Stage: Different age groups and life stages have distinct preferences and needs.
- Occupation and Income: A consumer's occupation and income level affect their purchasing power and choices.
- Lifestyle and Personality: Consumer lifestyles and personality traits can shape product preferences.
4. Situational Factors:
- Purchase Situation : The context in which a purchase is made, such as urgency or necessity.
- Physical Environment: The surroundings and atmosphere in which a consumer shops.
5. Marketing Mix (4Ps):
- Product: The features, quality, branding, and packaging of a product.
- Price: The pricing strategy and perceived value of a product.
- Place: The accessibility and convenience of purchasing channels.
- Promotion: Advertising, sales promotions, and marketing messages that influence consumer perception.
6. Online Influence:
- Online Reviews and Recommendations: Consumer reviews and recommendations on platforms like social media and e-commerce sites can heavily influence purchase decisions.
- E-commerce Trends: The growth of online shopping and the ease of comparison shopping online have changed consumer behavior.
7. Cultural and Global Factors:
- Globalization: Access to products and brands from around the world can influence consumer choices.
- Cultural Sensitivity: Understanding cultural nuances and customs is crucial for international marketing.
8. Ethical and Environmental Concerns:
- Ethical Values: Consumers may consider a company's ethical practices and social responsibility when making purchase decisions.
- Environmental Sustainability: Concerns about environmental impact can affect product choices and brand loyalty.
9. Psychological Triggers:
- Scarcity: The perception of limited availability can trigger urgency to purchase.
- Social Proof: Seeing others using or endorsing a product can influence behavior.
- Emotional Appeal: Emotional marketing campaigns can tap into consumer feelings and desires.
These factors interact in complex ways, and individual consumers may weigh them differently depending on their unique circumstances and preferences. Businesses use market research and consumer insights to tailor their marketing strategies to effectively target and influence their target audience.
(ix) Explain the different elements of promotion mix. Distinguish between advertisement and publicity. 6+4=10
Ans:- Promotion Mix and the Difference Between Advertisement and Publicity:
The promotion mix refers to the various elements or tools that a company uses to communicate and promote its products or services to its target audience. These elements are used to create awareness, generate interest, persuade, and ultimately encourage the target audience to take action (e.g., make a purchase). The main elements of the promotion mix include:
1. Advertising: Advertising involves paid, non-personal communication through various media channels like television, radio, print (newspapers and magazines), online, social media, billboards, etc. Its primary purpose is to reach a wide audience and promote a product or service.
2. Sales Promotion: Sales promotions are short-term incentives designed to stimulate immediate action from consumers or trade partners. Examples include discounts, coupons, contests, and buy-one-get-one-free offers.
3. Public Relations: Public relations activities aim to build and maintain a positive image of a company or brand in the eyes of the public. This can involve activities like media relations, event sponsorships, press releases, and community involvement.
GU Principles of Marketing 2022 Solved question paper
4. Personal Selling: Personal selling involves face-to-face interactions between a salesperson and a potential customer. It allows for customized communication and is particularly effective in B2B (business-to-business) sales.
5. Direct Marketing: Direct marketing involves reaching out to potential customers directly, often through methods like email marketing, direct mail, telemarketing, and personalized online advertising.
6. Sponsorship: Sponsorship involves partnering with events, organizations, or individuals to promote a product or brand. Companies sponsor sports events, music festivals, or influencers to gain exposure and enhance their brand image.
Distinguishing Between Advertisement and Publicity:
Advertisement:
- Paid: Companies pay for advertising space or time in various media channels.
- Controlled Message: Advertisers have full control over the content and message of their ads.
- Purpose: The primary purpose is to promote a product or service and create brand awareness.
- Mediums: Advertisements can appear in various media, including TV, radio, print, online, and more.
- Message Consistency: Advertisements convey a consistent and planned message.
- Timing: Advertisements are typically scheduled and run according to a predetermined plan.
Publicity:
- Earned or Free: Publicity is not paid for; it is generated through media coverage or word-of-mouth.
- Limited Control: Companies have limited control over how their brand is portrayed in publicity.
- Purpose: Publicity aims to generate media interest and coverage to enhance brand reputation.
- Mediums: Publicity often comes from news stories, social media mentions, reviews, or endorsements.
- Message Variability: Publicity can be positive or negative, depending on public perception.
- Timing: Publicity is often spontaneous and can occur when an event or news story generates interest.
(x) What is new product development? Explain the various steps involved in new product development process. 2+8=10
Ans:- New Product Development and its Steps:
New product development (NPD) is the process of bringing a new product or service to the market. It involves creating and launching products that are new or significantly improved compared to existing offerings. The NPD process typically consists of several key steps:
1. Idea Generation: The first step is to generate ideas for new products or improvements to existing ones. Ideas can come from various sources, including customer feedback, market research, brainstorming sessions, and internal teams.
2. Idea Screening: Not all ideas are feasible or align with the company's goals. In this step, ideas are evaluated and screened to identify those with the most potential for success.
3. Concept Development and Testing: Promising ideas are further developed into product concepts. These concepts are presented to a sample of the target market to gather feedback and assess interest.
4. Business Analysis: A detailed business analysis is conducted to assess the viability of the product. This includes estimating costs, forecasting sales, analyzing competition, and evaluating potential risks and returns.
5. Product Development: Once the concept is approved, the actual product or service is developed. This phase involves designing, prototyping, and testing the product to ensure it meets quality and performance standards.
6. Market Testing: Some companies choose to test the product in a specific market or region to gauge customer response and make necessary adjustments before a full-scale launch.
7. Commercialization: If market testing is successful, the product is ready for a full-scale launch. This involves developing a marketing plan, setting pricing, distribution, and promotion strategies, and preparing for market entry.
8. Launch: The product is officially introduced to the market through various marketing and promotional efforts. The launch phase is critical for creating initial awareness and generating sales.
9. Post-Launch Review: After the product is in the market, ongoing monitoring and evaluation take place. This includes assessing customer feedback, sales performance, and making improvements as needed.
10. Product Life Cycle Management: As the product matures, companies may need to make decisions about whether to extend the product's life through updates, discontinuation, or replacement with newer offerings.
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