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1 (Sem-2) BCM 03
2025
COMMERCE
Paper : BCM0200304
(Principles of Marketing)
Full Marks : 60
Time : 2½ hours
The figures in the margin indicate full marks for the questions.
1. Answer the following by choosing the correct option : 1×8=8
(a) “Marketing is the delivery of standard.” This definition of marketing has been given by —
(i) Stanton
(ii) Kotler
(iii) Mazur
(iv) Tousley
Answer:- (iii) Mazur
(b) Bread is an example of —
(i) Emergency goods
(ii) Convenience goods
(iii) Speciality goods
(iv) Impulse goods
Answer:- (ii) Convenience goods
(c) Consumer behaviour is affected by —
(i) Income
(ii) Family
(iii) Age
(iv) All of the above
Answer:- (iv) All of the above
(d) Product diversification is essential to meet changing tastes and desires of which one of the following?
(i) Consumers
(ii) Government
(iii) Sellers
(iv) Policy makers
Answer:- (i) Consumers
(e) Introducing a product or service at low price is called —
(i) Prestige pricing
(ii) Psychological pricing
(iii) Penetration pricing
(iv) Skimming pricing
Answer:- (iii) Penetration pricing
(f) Which of the following is an example of promotion mix?
(i) Trade fairs
(ii) Advertising
(iii) Test marketing
(iv) All of the above
Answer:- (iv) All of the above
(g) Sales promotion activities are conducted by —
(i) State
(ii) Customer
(iii) Retailers
(iv) Salesmen
Answer:- (iv) Salesmen
(h) What is environment friendly marketing called?
(i) Service marketing
(ii) Green marketing
(iii) Value offering
(iv) International marketing
Answer:- (ii) Green marketing
2. Answer the following questions very briefly : (any six) 2×6=12
(i) State two characteristics of marketing.
Answer:-
i) Customer-oriented: Marketing focuses on identifying and satisfying the needs and wants of customers.
ii) Exchange process: Marketing involves exchange of goods and services between buyers and sellers for mutual benefit.
(ii) What is product differentiation?
Answer:- Product differentiation refers to the process of distinguishing a product from its competitors by adding unique features, quality, design or brand image. It helps create a distinct identity in the market and attracts customers by offering something different from similar products.
(iii) What is co-branding?
Answer:- Co-branding is a marketing strategy in which two or more well-known brands are combined to promote a single product or service. It helps both brands benefit from each other’s reputation, customer base and market reach, thereby increasing sales and brand value.
(iv) What is prestige pricing policy?
Answer:- Prestige pricing policy is a pricing strategy in which a product is priced at a high level to create a perception of superior quality, luxury or exclusiveness. It is generally used for premium products to attract status-conscious customers.
(v) Write two importance of channels of distribution.
Answer:- i) Channels of distribution help in transferring goods from producers to consumers efficiently.
ii) They create time and place utility by making products available at the right place and time.
(vi) What is e-tailing?
Answer:- E-tailing, or electronic retailing, refers to the sale of goods and services through online platforms over the internet. Customers can browse, select and purchase products using websites or mobile applications without visiting physical stores.
(vii) What is personal selling?
Answer:- Personal selling is a method of promotion in which a salesperson directly communicates with customers to persuade them to purchase a product or service. It involves face-to-face interaction and helps build strong customer relationships.
(viii) Write two factors affecting pricing mix.
Answer:- i) Cost of production: The total cost of producing and distributing a product influences its price.
ii) Competition: The pricing policies of competitors affect the pricing decisions of a firm.
(ix) What is consumerism?
Answer:- Consumerism is a social movement aimed at protecting the rights and interests of consumers. It ensures fair trade practices, quality products and protection against exploitation by producers and sellers.
(x) State two advantages of direct marketing.
Answer:- i) Direct marketing allows personalized communication with customers.
ii) It provides quick feedback and response from customers.
3. Write short answers to the following questions : (any four) 5×4=20
(i) Explain the differences between traditional and modern marketing in table.
Answer:-
Thus, modern marketing emphasizes customer satisfaction, relationship building and value creation compared to traditional marketing.
(ii) Explain marketing mix.
Answer:- Marketing mix refers to the combination of marketing elements used by a firm to achieve its marketing objectives in the target market. It is commonly known as the 4Ps of marketing: Product, Price, Place and Promotion. These elements must be properly coordinated to satisfy customers and achieve organizational goals.
i) Product: Product refers to goods or services offered to customers. It includes features, design, quality, brand name, packaging and after-sales service. The product should satisfy customer needs and preferences.
ii) Price: Price is the amount charged for a product. It should be determined after considering cost, competition, demand and customer perception. Pricing strategies like penetration pricing and skimming pricing are used.
iii) Place: Place refers to distribution channels used to deliver products to customers. It ensures availability of products at the right place and time through wholesalers, retailers or online platforms.
iv) Promotion: Promotion involves activities that inform and persuade customers. It includes advertising, personal selling, sales promotion and public relations.
A proper balance of these four elements leads to effective marketing performance.
(iii) Describe the factors influencing consumer behaviour.
Answer:- Consumer behaviour refers to the actions and decisions of consumers while purchasing goods and services. It is influenced by several factors which can be grouped as follows:
i) Personal Factors: These include age, income, occupation, lifestyle and personality. For example, income level affects purchasing power, and age influences product preference.
ii) Psychological Factors: Motivation, perception, learning and attitudes influence buying behaviour. Consumers buy products that satisfy their needs and match their beliefs.
iii) Social Factors: Family, friends, reference groups and social status affect purchasing decisions. Family members often influence the choice of products.
iv) Cultural Factors: Culture, traditions, religion and social values shape consumer preferences and consumption patterns.
Understanding these factors helps marketers design effective marketing strategies and meet customer expectations.
(iv) Describe the market positioning concept.
Answer:- Market positioning refers to the process of creating a distinct image of a product or brand in the minds of target customers. It aims to differentiate the product from competitors and occupy a unique place in the market.
Positioning is based on product features, price, quality, benefits or brand image. A company identifies its target market and highlights the unique advantages of its product. For example, a brand may position itself as a premium quality product or as an affordable option.
Effective positioning requires understanding customer needs, competitor analysis and consistent communication. Tools such as advertising, branding and promotion help in building a strong position. Proper positioning increases brand loyalty, competitive advantage and market share.
(v) Explain the importance of market segmentation.
Answer:- Market segmentation refers to the process of dividing a large and heterogeneous market into smaller groups of consumers with similar needs, characteristics or behaviour. It is important in modern marketing because it helps firms serve customers more effectively.
i) Better Understanding of Customers: Segmentation helps marketers understand the specific needs and preferences of different groups.
ii) Effective Targeting: It enables the company to select a particular segment and design suitable marketing strategies.
iii) Efficient Use of Resources: Firms can concentrate their efforts on profitable segments instead of targeting the entire market.
iv) Competitive Advantage: By focusing on a specific segment, companies can differentiate their products from competitors.
v) Customer Satisfaction: Tailor-made products and services increase customer satisfaction and loyalty.
vi) Improved Marketing Mix: Segmentation helps in designing appropriate product, price, place and promotion strategies for each segment.
Thus, market segmentation improves marketing efficiency and business performance.
(vi) Discuss the stages of product life cycle.
Answer:- Product Life Cycle (PLC) refers to the stages through which a product passes from its introduction to its decline in the market. It consists of four main stages.
i) Introduction Stage: The product is launched in the market. Sales are low and promotion costs are high. Profits are minimal or negative due to heavy advertising and distribution expenses.
ii) Growth Stage: Sales increase rapidly as the product gains acceptance. Profits rise due to higher sales volume. Competition also increases, and firms improve product quality and promotion.
iii) Maturity Stage: Sales reach their peak and market becomes saturated. Competition is intense, and profit growth slows down. Companies focus on product differentiation and promotional offers to maintain market share.
iv) Decline Stage: Sales and profits start decreasing due to changes in consumer preferences or new products in the market. Firms may reduce production, modify the product or withdraw it from the market.
Understanding PLC helps managers plan marketing strategies at each stage.
(vii) Discuss the various forms of distribution channels.
Answer:- Distribution channel refers to the path or route through which goods and services move from the producer to the final consumer. The selection of an appropriate channel is very important for ensuring timely delivery, cost efficiency and customer satisfaction. The various forms of distribution channels are explained below:
i) Direct Channel (Zero-Level Channel): In this channel, the producer sells goods directly to the consumers without any intermediaries. Examples include company-owned showrooms, online websites and door-to-door selling. This channel provides better control over pricing and customer relationship. It also helps in earning higher profit margins, but it may involve higher distribution costs.
ii) One-Level Channel: In this channel, there is one intermediary between producer and consumer, usually a retailer. The flow is Producer → Retailer → Consumer. It is commonly used for consumer goods such as clothing and electronics. It reduces the burden on the producer and ensures quick availability of products.
iii) Two-Level Channel: This channel involves two intermediaries, usually a wholesaler and a retailer. The flow is Producer → Wholesaler → Retailer → Consumer. It is widely used for fast-moving consumer goods like groceries and packaged items. It helps in wider market coverage and efficient bulk distribution.
iv) Three-Level Channel: In this channel, the producer sells goods through agents, wholesalers and retailers before reaching the consumer. It is used when the market is large and geographically scattered. It increases market reach but reduces direct control of the producer.
v) Hybrid or Multi-Channel Distribution: In modern marketing, companies use more than one channel to reach customers. For example, a company may sell products through retail stores as well as online platforms. This increases market coverage and customer convenience.
The choice of distribution channel depends on factors such as nature of product, market size, cost, competition and company objectives.
(viii) Explain the advantages of online marketing.
Answer:- Online marketing refers to the promotion and sale of goods and services through internet-based platforms such as websites, social media and email. It has become an essential tool in the 21st century due to rapid digitalisation. The advantages of online marketing are as follows:
i) Global Reach: Online marketing enables businesses to reach customers across the world without geographical limitations. Even small businesses can access international markets.
ii) Cost-Effective: Compared to traditional advertising methods such as television and newspapers, online marketing is less expensive. It reduces promotional costs and increases profitability.
iii) Targeted Advertising: Digital platforms allow businesses to target specific customers based on age, location, interests and buying behaviour. This improves marketing efficiency.
iv) 24/7 Availability: Online marketing allows customers to access products and services at any time. This increases convenience and sales opportunities.
v) Quick Feedback and Interaction: Customers can provide instant feedback through reviews, comments and messages. Businesses can quickly respond and build strong relationships.
vi) Measurable Results: Online marketing provides analytical tools to measure performance such as website traffic, customer engagement and conversion rate. This helps in improving strategies.
vii) Brand Building: Social media and digital platforms help in increasing brand awareness and maintaining customer loyalty.
Thus, online marketing plays a vital role in enhancing sales, customer satisfaction and competitive advantage in the modern business environment.
4. Answer the following questions : (any two) 10×2=20
(i) Discuss the various environmental forces influencing marketing.
Answer:- Marketing environment refers to the forces and factors outside the organization that influence marketing activities and decision-making. These environmental forces affect the ability of a company to serve its customers effectively. The marketing environment can be broadly classified into micro environment and macro environment.
A) Micro Environment
i) Customers: Customers are the most important element of marketing. Changes in customer preferences, income, taste and buying behaviour directly affect marketing strategies.
ii) Competitors: The presence of competitors influences pricing, product design, promotion and distribution policies. A company must continuously monitor competitor activities to survive in the market.
iii) Suppliers: Suppliers provide raw materials and other inputs. Any change in cost or supply conditions affects production and pricing decisions.
iv) Intermediaries: Wholesalers, retailers and agents help in distribution. Their efficiency and cooperation influence product availability and customer satisfaction.
v) Publics: Media, financial institutions and local communities affect the reputation and goodwill of the company.
B) Macro Environment
i) Economic Environment: Factors such as income level, inflation, unemployment and economic growth affect purchasing power and demand for products.
ii) Social and Cultural Environment: Culture, traditions, lifestyle and social values influence consumer preferences and buying behaviour.
iii) Political and Legal Environment: Government policies, taxation, trade regulations and consumer protection laws affect business operations.
iv) Technological Environment: Technological advancements create new products and improve production methods. Companies must adapt to technological changes to remain competitive.
v) Demographic Environment: Population size, age distribution, education level and urbanization influence market demand.
vi) Natural Environment: Environmental issues such as pollution, climate change and scarcity of resources affect production and marketing decisions.
Thus, marketing activities are greatly influenced by environmental forces. A company must continuously analyse these forces to develop effective marketing strategies.
(ii) What is consumer behaviour? Discuss the consumer buying decision process with examples. 3+7=10
Answer:- Consumer behaviour refers to the study of how individuals select, purchase, use and dispose of goods and services to satisfy their needs and wants. It involves understanding the psychological, social and economic factors that influence buying decisions. Marketers study consumer behaviour to design effective marketing strategies.
The consumer buying decision process consists of the following stages:
i) Problem Recognition: The process begins when a consumer realizes a need or problem. For example, a person may feel the need to buy a new mobile phone because the old one is not functioning properly.
ii) Information Search: The consumer searches for information about available products. Information may be collected from friends, advertisements, online reviews and social media.
iii) Evaluation of Alternatives: The consumer compares different brands based on features, price, quality and reviews. For example, comparing Samsung, Apple and other brands before buying a mobile phone.
iv) Purchase Decision: After evaluation, the consumer selects the most suitable product and makes the purchase.
v) Post-Purchase Behaviour: After buying, the consumer evaluates whether the product meets expectations. Satisfaction leads to repeat purchase, while dissatisfaction may lead to complaints.
Understanding this process helps marketers influence consumer decisions effectively.
(iii) Explain the different basis for classification of products. Discuss the functions of labelling of products. 3+7=10
Answer:- Products can be classified on different bases depending on their nature and usage.
A) Basis for Classification of Products
i) Based on Use: Products are classified as consumer goods and industrial goods. Consumer goods are purchased for personal use, while industrial goods are used for business or production purposes.
ii) Based on Durability: Products are classified as durable goods and non-durable goods. Durable goods last for a long period, such as furniture and cars. Non-durable goods are consumed quickly, such as food items.
iii) Based on Buying Behaviour: Consumer goods are further classified as convenience goods, shopping goods and specialty goods. Convenience goods are purchased frequently, shopping goods require comparison and specialty goods have unique features.
B) Functions of Labelling
Labelling refers to the information provided on the product package. It performs several important functions:
i) Identification: It identifies the brand and product.
ii) Information: It provides details about ingredients, weight, price, manufacturing date and expiry date.
iii) Instruction: It gives directions for use and storage of the product.
iv) Promotion: Attractive labels help in promoting the product and attracting customers.
v) Legal Compliance: Labelling ensures that the product meets legal requirements and consumer protection laws.
vi) Safety Warning: It provides warnings and precautions to protect consumers.
Thus, proper classification and effective labelling help in better marketing and consumer satisfaction.
(iv) Describe the objectives of pricing. Explain the pricing policies which can be adopted by a new product. 5+5=10
Answer:- Pricing is an important element of marketing mix. It refers to the amount of money charged for a product or service. Pricing decisions directly affect sales, profit and market share. The main objectives of pricing are as follows:
Objectives of Pricing
i) Profit Maximisation: One of the primary objectives of pricing is to earn maximum profit. Firms may fix prices to achieve higher returns in the short run or long run.
ii) Market Share Maximisation: Some companies aim to capture a large market share by setting competitive prices. Lower prices attract more customers and increase sales volume.
iii) Survival: In highly competitive markets, firms may fix low prices to survive and continue operations during difficult conditions.
iv) Stability in Prices: Companies try to maintain stable prices to avoid price wars and maintain customer confidence.
v) Quality Leadership: Some firms fix high prices to create an image of superior quality and prestige in the market.
Pricing Policies for a New Product
When introducing a new product, firms generally adopt the following pricing policies:
i) Skimming Pricing: Under this policy, the product is introduced at a high price to recover development costs and earn high profits from early buyers. It is suitable when the product is innovative and faces less competition.
ii) Penetration Pricing: Under this policy, the product is introduced at a low price to attract a large number of customers and quickly gain market share. It is useful when competition is high and demand is price-sensitive.
iii) Introductory Pricing: A temporary low price is offered to create awareness and encourage trial of the new product.
iv) Promotional Pricing: Discounts and special offers are provided during the launch stage to increase sales.
Thus, pricing objectives and policies play a vital role in the successful introduction of a new product.
(v) What is promotion mix? Discuss the factors affecting promotion mix decisions.
Answer:- Promotion mix refers to the combination of promotional tools used by a company to inform, persuade and remind customers about its products. It is an important element of marketing mix and helps in increasing sales and building brand image. The main elements of promotion mix are advertising, personal selling, sales promotion, public relations and direct marketing.
Factors Affecting Promotion Mix Decisions
i) Nature of Product: Consumer goods generally require more advertising and sales promotion, while industrial goods rely more on personal selling.
ii) Nature of Market: If the market is large and geographically scattered, advertising is more effective. In small markets, personal selling may be suitable.
iii) Stage of Product Life Cycle: In the introduction stage, heavy promotion is required. In the maturity stage, reminder advertising is used.
iv) Promotion Budget: The amount of funds available determines the type and extent of promotional activities.
v) Type of Marketing Strategy: In push strategy, personal selling and trade promotion are emphasized. In pull strategy, advertising and consumer promotion are emphasized.
vi) Competition: Intense competition requires strong promotional efforts to attract and retain customers.
vii) Target Customers: Age, income level and buying behaviour of customers influence the choice of promotional tools.
Thus, promotion mix decisions depend on various internal and external factors and must be carefully planned for effective marketing performance.
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