Principles of Marketing 2024 Solved Question Paper [Gauhati University BCom 2nd Semester NEP FYUGP]

In this post, we have provided the Gauhati University BCom 2nd Semester Principles of Marketing Solved Question Paper 2024. This resource will help students understand the exam pattern, practice important questions, and prepare effectively for their exams.

By referring to this GU NEP FYUGP BCom 2nd Semester Principles of Marketing Solved Question Paper 2024, students can gain insights into the marking scheme, question format, and essential topics covered in the syllabus.

GU BCom 2nd Semester NEP FYUGP Principles of Marketing Solved Question Paper 2024

1 (Sem-2) BCM 3

2024

COMMERCE

Paper: BCM0200304

(Principles of Marketing)

Full Marks: 60

Time: 2½ hours

The figures in the margin indicate full marks for the questions.

Answer either in English or in Assamese.

1. Answer the following by choosing the correct option: 1×8=8

(a) Marketing refers to
(i) Goods distribution
(ii) Exchange of goods and services
(iii) Sale of product
(iv) All of the above
Answer: (iv) All of the above

(b) Which one of the following is related to micro-environmental forces?
(i) Demographic
(ii) Marketing intermediaries
(iii) Economic
(iv) Socio-cultural
Answer: (ii) Marketing intermediaries

(c) Consumer behaviour is affected by
(i) Family
(ii) Age
(iii) Income
(iv) All of the above
Answer: (iv) All of the above

(d) Which of the following is not a type of marketing concept?
(i) Production concept
(ii) Supplier concept
(iii) Selling concept
(iv) Societal marketing concept
Answer: (ii) Supplier concept

(e) Form of testing markets and getting customer feedback of promising ideas is called
(i) Idea generator
(ii) Concept testing
(iii) Product testing
(iv) Test marketing
Answer: (ii) Concept testing

(f) Fast food outlets like Pizza Hut is an example of which marketing technique?
(i) Product franchising
(ii) Business-format franchising
(iii) E-Commerce
(iv) Retailing
Answer: (ii) Business-format franchising

(g) A company that attaches the same brand name to all of its products is called
(i) Family brand
(ii) Individual brand
(iii) Geographic brand
(iv) Service brand
Answer: (i) Family brand

(h) Which of these is not an advertising goal?
(i) Attention
(ii) Desire
(iii) Adoption
(iv) Action
Answer: (iii) Adoption

2. Answer the following questions very briefly: (any six) 2×6=12

(i) State two importances of marketing.

Answer: (a)Marketing helps in increasing sales and revenue by promoting products and services effectively.

(b) It helps in building customer relationships and understanding their needs for long-term business growth.

(ii) What is target market selection?

Answer: Target market selection is the process of identifying and choosing specific groups of consumers that a company aims to serve by tailoring its marketing strategies to their needs and preferences.

(iii) What do you understand by buying motives?

Answer: Buying motives are the reasons or drives that compel consumers to make a purchase. These can be rational, such as price or quality, or emotional, such as prestige or personal satisfaction.

(iv) Briefly explain the role of packaging.

Answer: Packaging protects the product from damage during transportation and storage. It also acts as a marketing tool by attracting customers through appealing designs and providing product information.

(v) qhat is e-tailing?

Answer: E-tailing refers to the selling of goods and services through online platforms or electronic channels, enabling customers to shop conveniently from their homes.

(vi) State two pricing objectives.

Answer: (i) Profit maximization: Setting prices to achieve the highest possible profits.

(ii) Market penetration: Setting low prices to enter and capture a significant share of the market quickly.

(vii) write two differences between goods marketing and services marketing.

Answer: (i) Goods marketing focuses on tangible products, while services marketing deals with intangible offerings.

(ii) Goods can be stored and inventoried, whereas services are produced and consumed simultaneously.

(viii) what is consumerism?

Answer: Consumerism is a movement that aims to protect the rights and interests of consumers by ensuring fair trade practices, quality products, and accurate information.

(xi) What is green marketing?

Answer: Green marketing refers to promoting products or services that are environmentally friendly, sustainable, and designed to reduce ecological impact.

(x) What do you mean by personal selling?

Answer: Personal selling involves direct interaction between a salesperson and a potential customer to persuade them to purchase a product or service. It focuses on building relationships and addressing customer needs individually.

3. Write short answers to the following questions: (any four) 5×4=20

(i) Explain the functions of marketing. 

Ans:- Marketing plays a vital role in the success of any business by connecting products or services to customers. The key functions of marketing are:

1. Market Research: This involves collecting and analyzing information about customers, competitors, and market trends to make informed decisions. It helps identify opportunities and challenges in the market.

2. Product Development: Marketing contributes to designing and developing products that meet customer needs. It ensures the product offers value and stands out in the market.

3. Pricing: Setting the right price is crucial for profitability and competitiveness. Marketing evaluates factors like production cost, demand, competition, and customer willingness to pay.

4. Promotion: This includes advertising, sales promotion, public relations, and personal selling to create awareness and persuade customers to buy the product.

5. Distribution: Marketing ensures that products are delivered to customers through appropriate channels, such as retail stores, online platforms, or direct delivery.

6. Customer Relationship Management: Maintaining a good relationship with customers builds loyalty and encourages repeat business. Marketing strategies focus on understanding and satisfying customer needs.

(ii) Explain the significance of the study of consumer behaviour. 

Ans:- The study of consumer behaviour is important for businesses to thrive in competitive markets. Its significance can be summarized as follows:

1. Understanding Customer Needs: By studying consumer behaviour, businesses can understand what customers want, how they make purchase decisions, and what influences their preferences.

2. Product Development: Insights from consumer behaviour help in designing products that meet the exact requirements of the target audience, increasing the chances of success.

3. Effective Marketing Strategies: It aids in creating personalized and effective marketing campaigns by understanding the consumer’s habits, preferences, and motivations.

4. Predicting Market Trends: Analyzing consumer behaviour helps predict future buying patterns and trends, allowing businesses to stay ahead of competitors.

5. Improving Customer Satisfaction: By understanding and addressing consumer expectations, businesses can improve customer satisfaction, leading to brand loyalty and long-term relationships.

(iii) Describe the differences between product differentiation and market segmentation.

Ans:- 

(iv) Explain the various product support services available to consumers.

Ans:- Product support services are additional services provided by businesses to enhance customer satisfaction and ensure proper product usage. These include:

1. Installation Services: Assistance in setting up and installing products like electronics, home appliances, or machinery.

2. Warranty and Guarantee: Assurance that the product will function as expected, with free repair or replacement during a specific period.

3. Maintenance and Repairs: Regular servicing and repair services for products to ensure long-term usability, such as for vehicles or electronics.

4. Customer Support: Helplines, chat support, or email assistance to resolve queries or issues related to the product.

5. Training and Tutorials: Guidance on how to use the product effectively, such as software training or user manuals.

6. Return and Exchange Policies: Convenient return, refund, or exchange options if the product does not meet customer expectations.

These services build trust, enhance customer satisfaction, and encourage repeat purchases.

(v) Describe the factors affecting pricing of a product. 

Ans:- The pricing of a product is influenced by several factors:

1. Cost of Production: The total cost of manufacturing, including raw materials, labor, and overheads, is a primary determinant of the product's price.

2. Market Demand: High demand allows businesses to set higher prices, while low demand may require competitive or lower pricing.

3. Competition: Prices are influenced by what competitors are charging for similar products. Businesses may adopt competitive pricing to attract customers.

4. Target Audience: The purchasing power, preferences, and willingness to pay of the target audience impact pricing decisions.

5. Economic Conditions: Inflation, recession, and changes in the economy affect consumer spending and pricing strategies.

6. Government Regulations: Taxes, duties, and price controls imposed by the government can influence pricing.

7. Product Differentiation: Unique features, quality, and brand value allow businesses to charge premium prices.

8. Distribution Channels: Longer or more complex distribution networks may increase the final price due to added costs.

(vi) Discuss the different types of distribution channels with examples. 

Ans:- Distribution channels are pathways through which products or services reach customers. The main types are:

1. Direct Channels:

• Definition: The product is sold directly from the producer to the consumer without intermediaries.

• Examples: Online stores (Amazon for private-label products), company-owned outlets (Apple stores).

2. Indirect Channels:

• Definition: Involves intermediaries like wholesalers, retailers, or agents to distribute products.

• Examples: FMCG products like toothpaste sold through wholesalers and retailers.

3. Dual Channels:

• Definition: Combines direct and indirect methods, allowing producers to reach customers through multiple paths.

• Examples: Nike sells via its website (direct) and through retail stores (indirect).

4. E-commerce Channels:

• Definition: Products are sold online via websites, mobile apps, or marketplaces.

• Examples: Platforms like Amazon, Flipkart, and Shopify.

5. Franchising:

• Definition: Businesses allow franchisees to operate outlets under their brand.

• Examples: McDonald’s, Domino’s Pizza.

Each type of channel has its benefits and is chosen based on the product type, target audience, and market conditions.

(vii) Explain the elements of promotion mix. 

Ans:- The promotion mix includes various tools and techniques used by businesses to communicate with their target audience and promote their products or services. The main elements are:

1. Advertising:

• Non-personal, paid communication through media like TV, radio, newspapers, social media, and online platforms.

• Example: Coca-Cola ads on television.

2. Sales Promotion:

• Short-term incentives to boost sales, such as discounts, coupons, free samples, and contests.

• Example: Buy-one-get-one-free offers in retail stores.

3. Public Relations (PR):

• Building a positive image through media coverage, press releases, sponsorships, and community involvement.

• Example: Companies sponsoring sports events or social initiatives.

4. Personal Selling:

• Direct interaction between a salesperson and the customer to explain, persuade, or close a sale.

• Example: Real estate agents showcasing properties to buyers.

5. Direct Marketing:

• Direct communication with customers through emails, SMS, telemarketing, or catalog distribution.

• Example: Email campaigns from e-commerce platforms.

6. Digital Marketing:

• Promotion through online channels such as search engines, social media, influencer marketing, and content marketing.

• Example: Ads on Google or social media platforms like Instagram.

These elements are used in combination based on the target audience, budget, and marketing goals.

(viii) Explain the advantages of rural marketing. 

Ans:- Rural marketing refers to marketing strategies aimed at rural areas, which hold significant potential for businesses. Its advantages include:

1. Large Market Potential: Rural areas constitute a large portion of the population, providing a vast and untapped customer base.

2. Increasing Purchasing Power: Improved infrastructure, government schemes, and rising income levels in rural areas have enhanced the purchasing power of rural consumers.

3. Lower Competition: Compared to urban markets, rural areas often have fewer competitors, offering businesses an opportunity to establish a strong presence.

4. Brand Loyalty: Rural consumers tend to be loyal to trusted brands, leading to long-term customer retention.

5. Less Saturated Market: Rural markets are less saturated than urban markets, offering businesses opportunities for growth and expansion.

6. Support from Government Policies: Government initiatives for rural development, such as subsidies and infrastructure projects, indirectly support rural marketing efforts.

7. Market for FMCG and Agri-products: Rural areas are major consumers of fast-moving consumer goods (FMCG) and agricultural products, making them essential markets for these sectors.

By focusing on rural marketing, businesses can expand their reach, tap into new revenue streams, and contribute to rural development.

4. Answer the following questions: (any two) 10×2=20

(i) 3+7=10 What is marketing mix? Explain about the 7P's. of marketing mix. 

Ans:- Answer:
Marketing Mix refers to a set of tools or strategies that a business uses to promote its products or services in the market. It is often called the 4P's or 7P's of marketing, depending on the approach. The Marketing Mix ensures that the right product reaches the right customers at the right time.

The 7P's of Marketing Mix are:

1. Product: The goods or services offered to satisfy the needs and wants of customers. Example: A smartphone with advanced features like a good camera and long battery life.

2. Price: The cost customers pay for the product or service. Businesses set prices based on competition, demand, and production costs. Example: Affordable pricing for budget-friendly customers.

3. Place: The location or distribution channels through which products are made available to customers. Example: Selling through online platforms like Amazon or physical stores.

4. Promotion: The methods used to communicate with customers and encourage them to buy. Example: Advertisements, discounts, and social media campaigns.

5. People: The individuals involved in delivering the product or service, including employees and customer service teams. Example: Friendly and knowledgeable sales staff.

6. Process: The steps taken to deliver the product or service efficiently. Example: Fast food chains using automated ordering systems to serve customers quickly.

7. Physical Evidence: The tangible or visible elements that support the product or service. Example: Clean and well-decorated restaurants enhance customer trust.

By managing these 7P's, businesses can effectively meet customer needs and achieve their goals.

(ii) Discuss the different methods of market segmentation with suitable examples.3+7=10 

Ans:- Answer:
Market segmentation is the process of dividing a broad market into smaller groups of consumers who share similar needs, characteristics, or behaviors. It allows businesses to create targeted marketing strategies and meet customer demands more effectively.

The primary methods of market segmentation are:

1. Demographic Segmentation
   This involves dividing the market based on demographic factors such as:

• Age: Products designed for kids, teens, adults, or senior citizens.
  Example: Baby products like diapers for infants, while skincare brands create anti-aging creams for older adults.

• Gender: Differentiating products for males, females, or non-binary individuals.
  Example: Razors marketed specifically for men or women.

• Income: Offering luxury products to high-income customers or budget-friendly options for lower-income groups.
  Example: Mercedes targets high-income groups, whereas budget cars like Tata Nano focus on middle or low-income groups.

2. Geographic Segmentation
   Divides the market based on physical location, such as:

• Country, region, city, or neighborhood.

• Climate or population density (urban/rural).
  Example: Winter jackets and heaters are promoted in cold regions, while air conditioners are targeted at hot climates.

3. Psychographic Segmentation
   Segmentation based on personality, lifestyle, values, or social class.

• Lifestyle: Active individuals might prefer sportswear, while book enthusiasts are targeted by bookstores.
  Example: Nike focuses on athletes and fitness enthusiasts.

• Values: Companies selling eco-friendly or sustainable products target customers who value environmental conservation.
  Example: Brands like Patagonia appeal to eco-conscious consumers.

4. Behavioral Segmentation
   Segmentation based on consumer behavior, such as:

• Usage Patterns: Heavy users vs. occasional users.
  Example: Telecom companies offering special data packages to heavy internet users.

• Occasions: Targeting customers during specific events or festivals.
  Example: Cadbury advertises its chocolates heavily during Diwali or Christmas.

• Loyalty: Creating rewards programs for loyal customers.
  Example: Starbucks rewards program for frequent buyers.

5. Technographic Segmentation
   Focuses on technology preferences and usage habits.

• Example: Apple targets tech-savvy customers who seek premium, innovative gadgets, while budget smartphone brands like Xiaomi cater to price-conscious users.

6. Firmographic Segmentation (B2B Markets)
   Targets businesses instead of individuals, based on factors such as:

• Industry, company size, or revenue.
  Example: A software company offers advanced enterprise solutions to large organizations and basic versions to small businesses or startups.

7. Cultural Segmentation
   Based on cultural values, beliefs, and traditions of specific groups.

• Example: Food brands offering vegetarian products in India due to cultural dietary preferences.

By applying these segmentation methods, businesses can tailor their marketing strategies to better suit the needs of specific groups, leading to higher customer satisfaction and increased sales. For example, Coca-Cola uses behavioral segmentation to create campaigns for different customer moods or occasions, ensuring a wider reach and better engagement.

(iii) What is a new product? Explain the various steps involved in new product development process.

Ans:- Answer:
A new product is any product that is introduced by a company to meet customer needs and generate revenue. It could be entirely innovative, an improvement of an existing product, or an adaptation of a product to a new market. For example, electric vehicles (EVs) are a new product in the automobile industry.

The New Product Development (NPD) Process involves several steps:

1. Idea Generation:

• Gathering ideas from various sources like customers, employees, competitors, or market trends.
  Example: A smartphone company brainstorming ideas for foldable screens.

2. Idea Screening:

• Evaluating and filtering ideas to select the most feasible ones.
  Example: Checking if a new product idea aligns with company goals and budget.

3. Concept Development and Testing:

• Developing the product idea into a detailed concept and testing it with a small group of potential customers.
  Example: Describing the features and benefits of an electric car and seeking feedback from target customers.

4. Business Analysis:

• Assessing the potential profitability, costs, and market demand for the new product.
  Example: Analyzing if producing a smartwatch is financially viable.

5. Product Development:

• Creating a prototype or sample of the product to check its functionality.
  Example: Developing a working model of a new kitchen appliance.

6. Market Testing:

• Launching the product in a limited market to gather customer responses.
  Example: Introducing a new flavor of chips in select cities to test its popularity.

7. Commercialization:

• Fully launching the product in the market with marketing and distribution strategies.
  Example: Advertising a new smartphone model globally and making it available in stores.

8. Post-Launch Evaluation:

• Monitoring the product’s performance and making necessary improvements.
  Example: Updating software features based on user feedback.

This systematic process helps companies minimize risks and ensure the success of their new products.

(iv) Discuss the major pricing policies adopted by companies. 

Ans:- Answer:
Pricing policies are strategies companies use to set the price of their products or services. These policies influence demand, profitability, and competition. The major pricing policies are:

1. Cost-Based Pricing:

• Price is set by adding a markup to the cost of production.
  Example: A shoe manufacturer adds a 20% profit margin to the production cost to determine the selling price.

2. Value-Based Pricing:

• Price is based on the perceived value of the product to the customer.
  Example: Apple prices its iPhones high because customers value the brand and product features.

3. Competition-Based Pricing:

• Price is set based on competitors’ pricing strategies.
  Example: A coffee shop offers its beverages at slightly lower prices than rival cafes.

4. Penetration Pricing:

• Setting a low price initially to attract customers and gain market share.
  Example: Streaming platforms like Disney+ offering low subscription fees during their launch.

5. Skimming Pricing:

• Setting a high price initially to maximize profits from early adopters and lowering it later.
  Example: High prices of new gaming consoles like PlayStation at launch, which are reduced after a few months.

6. Psychological Pricing:

• Pricing products slightly below a round number to make them appear cheaper.
  Example: Setting a product price at ₹999 instead of ₹1000.

7. Premium Pricing:

• Keeping prices high to create an impression of superior quality or exclusivity.
  Example: Luxury brands like Gucci or Rolex adopt this strategy.

8. Dynamic Pricing:

• Adjusting prices based on demand, season, or customer behavior.
  Example: Airlines increase ticket prices during peak travel seasons.

9. Bundle Pricing:

• Selling multiple products together at a discounted price.
  Example: A fast-food restaurant offering a meal combo of burgers, fries, and a drink.

10. Geographical Pricing:

• Setting prices based on the location of the market.
  Example: Products in rural areas may be priced lower than in urban areas.

By adopting these pricing policies, companies can meet their business objectives, attract customers, and remain competitive in the market.

(v) Highlight the importance of advertising. In this context explain how marketing goals are not with celebrity endorsements. 5+5=10 

Ans:- Answer:
Advertising plays a crucial role in creating brand awareness, promoting products or services, and influencing customer behavior. It helps businesses communicate their value propositions, connect with target audiences, and ultimately drive sales and revenue.

Importance of Advertising:

1. Increases Brand Awareness: Advertising helps introduce a product or service to a broader audience, ensuring that people become aware of what is being offered.

2. Builds Customer Trust: Consistent and positive messaging builds trust and credibility in the minds of consumers.

3. Drives Sales and Revenue: Effective advertising campaigns can lead to higher sales and a significant return on investment.

4. Promotes Product Differentiation: Advertising helps differentiate products from competitors by highlighting unique features and benefits.

5. Enhances Competitive Edge: It keeps brands competitive by showcasing their latest offerings and keeping up with market trends.

Marketing Goals with Celebrity Endorsements:

Celebrity endorsements have become a popular strategy in advertising to meet marketing goals.

• Increased Reach: Celebrities have large followings and social media presence, helping the brand reach millions of potential customers.
  Example: A fashion brand using a popular celebrity to promote its latest collection can attract a wider audience.

• Improved Credibility: Associating with well-known personalities enhances the credibility of a product, making it more appealing to consumers.
  Example: A fitness brand endorsing a renowned athlete to promote health and performance boosts trust among fitness enthusiasts.

• Emotional Connection: Celebrities evoke emotions, which can strengthen customer engagement and loyalty.
  Example: A car brand using a celebrity endorsement for adventurous off-road vehicles appeals to thrill-seeking customers.

• Targeting Specific Audiences: Celebrities help in segmenting the audience, reaching specific demographics such as age, lifestyle, or interests.
  Example: Beauty brands partnering with beauty influencers targeting younger generations who follow beauty trends.

However, while celebrity endorsements are effective, marketing goals should also focus on authenticity and long-term value, rather than relying solely on popularity. A well-rounded advertising strategy balances celebrity influence with other marketing tactics like content marketing, social media engagement, and performance analytics.

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