Marketing Fundamentals

Marketing

Introduction to Marketing & its importance
This aspect covers concepts like market, its types, scope, marketing as a function and as a philosophy,
marketing management, its importance and marketing mix.
Introduction:
A layman's concept of marketing is that of selling the products or services but the idea is much broader.
It is essentially related to customer satisfaction.
The first barter exchange can be looked upon as a reflection of the realization that exchange adds value
to both parties to the transaction. This indeed marked the dawn of marketing. Since then the evolution
of commerce through various stages has led to development of marketing into a philosophy of
business.
Marketing is both a concept and a practice; an approach to exchange relationships, which provides the
driving force for formulation of strategies of every type of organization. It is an important socio‐
economic activity. Marketing is not limited to business activity alone, but it also applies to other
activities like social services, elections etc.
Marketing concept:
Market:
The word market generally refers to the place where goods can be bought or sold.
A market consists of customers sharing a particular need or want who might be able to engage in
exchange to satisfy that need or want.
Market implies:
a) A situation where buyers and sellers of a commodity interact.
b) Coming together of buyers and sellers of the same or similar commodities.
It is possible for sellers to be dealing in one variety of soap and the buyers being interested in another
variety, which can be substituted by the one available with sellers.
Market is not necessarily a geographical area. Groups of buyers and sellers can be located wide apart
from each other. With the advanced and developed communication and transport facilities, the buyers
and sellers can easily contact each other even if they are physically at long distances.
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A market may comprise:
1) One Seller and many Buyers
2) Many sellers and One Buyer
3) Many sellers and Many Buyers
4) Few sellers and Many Buyers
5) Many Sellers and Few Buyers

Types of Markets

Basis of Types of market
classification
Geographical (a) Local market; (b) Regional market; (c) national
area market; (d) World/ global marker
Product (a) Cotton/vegetable/tea market; (b) share market;
(c) bullion market; (d) capital market; (e) real estate
market
Nature of (a) Cash/spot market; (b) futures market
transaction
Volume of (a) Retail market; (b) Wholesale market
transaction
Marketing:
Marketing has been defined in several ways: like
1) Meeting needs profitably
2) The process of determining consumer demand for a product or service, motivating its sale and
distributing it into ultimate consumption at a profit.
3) Creation and maintenance of mutually satisfying exchange relationships etc.
From several definitions given world‐wide it can be interpreted that
1 Focus of marketing is on consumer.
2 A human need is a state of deprivation of some basic satisfaction, which results in desire for
specific satisfiers of these needs, namely wants. Wants for specific products backed by an
ability and willingness to buy them results in demand.
3 The concept has become more comprehensive‐ moving from assessing and fulfilling consumer
demand, to identifying needs and wants and determining products and services. Indeed in the
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present age, marketing includes not only anticipating the consumer needs but also kindling
needs and providing new products and services to fulfill them.

Scope:
The scope of marketing in modern days covers, besides goods and services, other entities like
experiences, events, persons, properties, organizations, information and ideas. Marketing is a
combination of business management and the philosophy of business.
Marketing as a management function:
From one perspective it is a functional area of management and is within the firm using various
developed techniques for achieving specific objectives. Its major role is to identify the current and
future needs and wants of specifically defined target markets. The organization acts upon this
information to produce goods and services to satisfy customer requirements. Marketing provides
entrepreneurship by identifying opportunities in customer requirements and driving mobilization of
resources to capitalize on them. Marketing forms interface with the existing and potential customers.
Marketing as a business philosophy:
From another perspective marketing is much more than a management function. It is a way of thinking
about business and a way of working running through every aspect of the firm's business. It is a
customer and profit‐oriented approach permeating the entire business. It is, therefore, an attitude of
mind and hence an overall business philosophy.
Marketing vs Selling:
Marketing is a broader concept than selling.
Firms sell their goods or services to the customers who buy them. Marketing relates to producing or
creating goods or services needed by the customers. In the former case, the objective is to sell
whatever is available with the firms. While in case of marketing, the objective is to meet the customer's
need.

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Marketing function starts much before actual selling of products.
Selling is an operational activity, whereas marketing is a total management concept comprising
identification of customer needs, developing suitable products to meet those needs, delivering (selling)
the products to the customers and facilitating their consumption for ultimate satisfaction of those
needs. Thus selling is a part of marketing.
Selling is product focused whereas marketing is customer focused.
Selling is oriented to the needs of seller (the firms) where as marketing is oriented to the needs of the
buyer (the customers).
Selling aims at earning profits by maximizing sales volume. Marketing aims at earning profits by
maximizing customer satisfaction.
Marketing converts customer needs into profitable opportunity, whereas selling encashes such
opportunities.
Advertising is a form of communication that typically attempts to persuade potential customers to
purchase or to consume more of a particular brand of product or service. Many advertisements are
designed to generate increased consumption of those products and services through the creation and
reinforcement of "brand image" and "brand loyalty". For these purposes, advertisements sometimes
embed their persuasive message with factual information. Every major medium is used to deliver these
messages, including television, radio, cinema, magazines, newspapers, video games, the internet and
billboards. Advertising is often placed by an advertising agency on behalf of a company or other
organization.
Advertisements are seen on the seats ofshopping carts, on the walls of an airport walkway, on the sides
of buses, and are heard in telephone hold messages and in‐store public address systems.
Advertisements are often placed anywhere an audience can easily or frequently access visual, audio
and printed information.
Organizations that frequently spend large sums of money on advertising that sells what is not, strictly
speaking,l a product or service include political parties, internal groups, religious organizations, and
military recruiters. Non‐profit organizations are not typical advertising clients, and may rely on free
modes of persuasion, such as public service announcements.
Advertising spending has increased dramatically in recent years. In 2006, spending on advertising has
been estimated at $155 billion in the United States and $385 billion worldwide Advertising is
increasingly invading public spaces, such as schools, which some critics argue is a form of child
exploitation.
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Marketing management:
It is the process of planning and executing the conception, pricing, promotion and distribution of
goods, services and ideas to create exchanges with target groups that satisfy customer and
organizational objectives.
It comprises four key functional aspects, viz., Analysis, Planning, Implementation and Control.
The significance of marketing has been realized by all organizations whether in service or trade. Banks
are also not an exception to this. Highlights of the Bank Marketing can be attributed to the following
points.
1. All Organizations provide Services
2. Aim to satisfy Customer needs and wants of specific nature.
3. The nature of needs and wants of the customer are generally financial, while
some may be incidental to or related these
4. The Competitive element, efficiency and effectiveness are major factors in
the process.
5. Organizational objectives are still the driving force.
MARKETING RESEARCH
“Marketing Research is the function that links consumer, customer and public to the market, through
information which is used to identify and define marketing opportunities and problems. It generate,
refine and evaluate marketing actions, monitor marketing performance and improve understandings of
marketing as a process”‐American Marketing Association.
Marketing
Research
Marketing
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WHY MARKETING RESEARCH
To Identify the Needs and Wants
Mind it‐Wants are ever Changing
To Intensify the Marketing Operations due to Continuous Feedbacks.
To Evaluate the Marketing Operations and its Effectiveness vis‐à‐vis the Expectations
To Reduce the Risk of Failures
To Save Cost and Time
WHERE MARKETING RESEARCH?
1. Financial Research: Banking, Securities, Credit Card, Insurance, and Mutual Funds.
2. Automotive Research : Vehicles, Components, and Tyres.
3. Media Research
4. Consumer Products Research Durables and FMCG.
5. Industrial Research: Chemicals and Plastics Packaging, Textiles, Engineering, Bulk Drugs, Metals
and Minerals, Oil and Gases.
6. Healthcare Research: Consumers, Doctors, Chemists, Hospitals, Patients and Pharma
companies.

MARKETING INFORMATION SYSTEMS‐ MIS
Source
Internal continuous data: Information like allocation of discounts, promotional and transport
costs, sales achieved, no of new accounts opened, size of order etc.
Internal ad‐hoc data: How sales have reacted to price change or change in advt.

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Environmental scanning: Economic, social, legal and technological forces.
Marketing research: Immediate information about markets and reaction of these to various
product, price, distribution and promotion actions. Marketing mix decisions.
STP Process
1. Identify segmentation
variables & segment the
Market Segmentation market
2. Develop Profiles of
resulting segments
3. Evaluate the attractiveness

Market Targeting of each segment
4. Select the target segments
5. Identify possible positioning

concepts for each target
Market Positioning segment
6. Select, develop, and
communicate the chosen
positioning concept
Market Segmentation
Dividing a market into distinct groups with

distinct needs, characteristics, or behavior
who might require separate products or
marketing mixes.

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More precise
More Accurate
Market definition of
marketing
Segmentation customer needs &
objectives
wants
Improved
resource
allocation
Better Marketing
results
Market Segments & Niches

• Market Segments are large identifiable
groups within a market, within the car
market buyers seeking basic
transportation, high performance…
• A niche is a more narrowly defined group
which seeks a special combination of
benefits,
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Market Segmentation Procedure

• Survey Stage, starts with exploratory to gain
insights into consumer motivations, attitudes and
behavior, used to collect data on attributes,
brand awareness, product usage patters,
attitudes, demographics..
• Analysis, factor analysis and cluster analysis
• Profiling stage, each cluster is now profiled in
terms of its distinguishing attitudes, behavior,
demographics, psychographics, and media-
consumption habits. Each segment is given a
name…

Bases For Segmenting Consumer

Markets
GEOGRAPHIC
DEMOGRAPHIC
PSYCHOGRAPHIC
BEHAVIORAL
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Geographic Segmentation
Dividing the market into different
geographic units such as nations, states,
regions….
Ex- State-wise, City-wise

Rural Vs Urban markets
South Vs North ……
Psychographic Segmentation
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Buyers are divided into different groups on

the basis of social class, lifestyle, and/or
personality
• Social Class, A B C … has a strong
influence on the persons preferences in
cars, clothing, home furnishing, leisure…..
• Lifestyle, product interests are influenced
by lifestyles. Infact goods they consumer
express their lifestyles….
• Personality, brand personality &
consumer personality, sincerity,
ruggedness..
Behavioral Segmentation
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Buyers are divided into groups on the

basis of their knowledge, attitude, use or
response to a product
• Occasion, when they develop a need to

purchase or use a product
Ex- breakfast cereals, Horlicks, Festival,
marriage
• Benefits, A powerful form, based on the
benefits they seek from the product
Market Targeting
Segmentation reveals the market-segment

opportunity that exist, now the company
has to decide how many and which ones
to target.
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Marketing Mix:
Marketing is an ongoing process of planning and executing the marketing mix (Product, Price, Place,
Promotion) for products, services or ideas to create exchange between individuals and organizations.
Marketing tends to be seen as a creative industry, which includes advertising, distribution and selling. It
is also concerned with anticipating the customers' future needs and wants, which are often discovered
through market research.
Essentially, marketing is the process of creating or directing an organization to be successful in selling a
product or service that people not only desire, but are willing to buy.
Therefore good marketing must be able to create a "proposition" or set of benefits for the end
customer that delivers value through products or services
Marketing mix is the set of marketing tools that a firm uses to pursue its marketing objectives in the
target market.

The 4 P's of Marketing
Marketing decisions generally fall into the following four controllable categories:
Product
Price
Place (distribution)
Promotion
The term "marketing mix" became popularized after Neil H. Borden published his 1964 article, The
Concept of the Marketing Mix. Borden began using the term in his teaching in the late 1940's after
James Culliton had described the marketing manager as a "mixer of ingredients". The ingredients in
Borden's marketing mix included product planning, pricing, branding, distribution channels, personal
selling, advertising, promotions, packaging, display, servicing, physical handling, and fact‐finding and
analysis. E. Jerome McCarthy later grouped these ingredients into the four categories that today are
known as the 4 P's of marketing, depicted below:
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The Marketing Mix
These four P's are the parameters that the marketing manager can control, subject to the internal and
external constraints of the marketing environment. The goal is to make decisions that center the four
P's on the customers in the target market in order to create perceived value and generate a positive
response.
Product Decisions
The term "product" refers to tangible, physical products as well as services. Here are some examples of
the product decisions to be made:
Brand name
Functionality
Styling
Quality
Safety
Packaging
Repairs and Support
Warranty
Accessories and services
Price Decisions
Some examples of pricing decisions to be made include:
Pricing strategy (skim, penetration, etc.)
Suggested retail price
Volume discounts and wholesale pricing
Cash and early payment discounts
Seasonal pricing
Bundling
Price flexibility
Price discrimination
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Distribution (Place) Decisions
Distribution is about getting the products to the customer. Some examples of distribution decisions
include:
Distribution channels
Market coverage (inclusive, selective, or exclusive distribution)
Specific channel members
Inventory management
Warehousing
Distribution centers
Order processing
Transportation
Reverse logistics
Promotion Decisions
In the context of the marketing mix, promotion represents the various aspects of marketing
communication, that is, the communication of information about the product with the goal of
generating a positive customer response. Marketing communication decisions include:
Promotional strategy (push, pull, etc.)
Advertising
Personal selling & sales force
Sales promotions
Public relations & publicity
Marketing communications budget
Limitations of the Marketing Mix Framework
The marketing mix framework was particularly useful in the early days of the marketing concept when
physical products represented a larger portion of the economy. Today, with marketing more integrated
into organizations and with a wider variety of products and markets, some authors have attempted to
extend its usefulness by proposing a fifth P, such as packaging, people, process, etc. Today however,
the marketing mix most commonly remains based on the 4 P's. Despite its limitations and perhaps
because of its simplicity, the use of this framework remains strong and many marketing textbooks have
been organized around it.
4 Ps of marketing
Marketing decision variables are those variables under the firm's control that can affect the level of
demand for the firm's products. They are distinguished from environmental and competitive action
variables that are not totally and directly under the firm's control.
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The four marketing decision variables are:
Price variables
Allowances and deals
Distribution and retailer mark‐ups
Discount structure
Product variables
Quality
Models and sizes
Packaging
Brands
Service
Promotion variables
Advertising
Sales promotion
Personal selling
Publicity
Place variables
Channels of distribution
Outlet location
Sales territories
Warehousing system

From a buyer's point of view the four Cs that correspond to 4Ps are as follows.
4Cs of marketing:
Customer's needs and wants
Cost to the customer
Convenience
Communication

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Service :
A Service is any act or performance that one party can offer to another that is essentially intangible and
does not result in the ownership of anything. Its production may or may not be tied to a physical
product.
A service is an activity or series of activities of more or less intangible nature that normally, not
necessarily, takes place in interactions between the customer and service employees and / or physical
resources or goods and/or systems of the service provider, which are provided as solutions to customer
problems.

This highlights the following important features
1. Services are by and large activities
2. As a result the services are intangible.
3. They take place in the interaction between the customer and service provider, which means that
the services are produced and consumed simultaneously
Services now account for more than 70% of employment and GNP of most industrialised nations.
But as far there is no exact distinction between goods and services.

Characteristics of Services :
The main characteristics of services are Intangibility, Inseparability, Heterogeneity, Perishability.
Intangibility refers to the aspects not associated with any physical form or characteristics. It is very
much pronounced in the pure service element like the lecture given by a Professor.
Inseparability refers to the fact that production and consumption of the services are inextricably
intertwined.
Heterogeneity or Variability is a result of the fact that Services are usually delivered by Human beings,
whose performance is necessarily variable ; quality control is extremely difficult. It makes it difficult to
standardize the output of certain services.
Perishability means that the service "units" can not be stopped. If a seat is unfilled when a plane
leaves or the play starts it cannot be stored and sold on next day or next week. The revenue is lost
forever.

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PRACTICE QUESTIONS‐1
1. Which of the following is not correct with regard to marketing?
a. Marketing is a Management Function
b. Marketing is a Philosophy
c. Marketing is not related to Business Activity alone.
d. Marketing means selling.
e. Objective of Marketing is to achieve customer satisfaction.
2. Which of the following is a part of Marketing Management?
a. Identification of Business Opportunities
b. Understanding the Customer needs
c. Producing according to customer needs
d. Delivering as per Customer convenience
e. All the above
3. If Surf‐Excel is three pack sizes and two types of packages what is the
product depth?
a. Two
b. Three
c. Six
d. Eight
e. Nine
4. For promotion under 4P which aspect is not taken into account ?
a. Advertisement
b. Sales Promotion
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c. Sales Force
d. Public Relations
e. None of the above
5. In 4P model for marketing, the place relates to which aspect?
a. Distribution
b. Production
c. Transportation
d. A & C
e. B & C
6. What among the following is the feature of experienced goods?
a. These are intangible
b. These cannot be packaged
c. These cannot be touched
d. These can be evaluated only after use
e. All the above
7. A Brand name is?
a. A Symbol or a design for the purpose of identification.
b. Its legal version is trademark
c. It is given legal protection.
d. All the above.
e. None of the above.
8. Rural Markets are
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a. Homogeneous
b. Heterogeneous
c. Organized
d. Un‐organized
e. None of these
9. When very little is known about the problem being examined, which type of
marketing research is done ?
a. Exploratory Research
b. Descriptive Research
c. Casual Research
d. Predictive Research
e. None of these
10. It is difficult to measure the morale of the sales team directly because
a. It is a tangible state
b. It is an intangible state
c. Employees hide the truth
d. All the above
e. None of these
11. Which among the following is / are user /users of the outcome of the
Marketing Research
a) Consumers b) Business Firms c) Government d) Producers
a. Only b
b. Only a & b
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c. a, b, & d
d. All the above
e. None of these
12. In Banking Services Market can be segmented on the basis of
a. Density
b. Customers
c. Both a & b
d. Neither a & b
e. None of these
13. Sales targets are fixed on the basis of
a. Past experience
b. Time period
c. Brand positionary
d. All the above
e. None of these
14. Which among the following is an example of Secondary Media
a. Television
b. Radio
c. Hoardings
d. News Papers
e. None of these
15. Emotional and Rational buying motives can be differentiated on the basis
of
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a. Time in purchasing
b. Dominance
c. Nature of Product
d. All the above
e. None of these
16. Marketing implies "Meeting needs _____________" (Ans: Profitably)
17. The following does not represent a market situation.
a. A bank run dispensary in its staff quarters
b. A fund rising Charity Show for the members of an NGO
c. A Meditation Camp of a religious Organization conducted for its
members
d. A stall distributing Tirumala prasadam in a mandir
18. The markets are grouped into different types based on the geographical
area, location of market place, product, nature of transaction and volume of
transaction. In the above statement the following is not correct?

a. Nature of transaction.
b. Geographical area
c. Location of Market place
d. Volume of transaction
19. The act of obtaining a desired object from someone by offering something
in return is called
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a. Transaction
b. Exchange
c. Relationship
d. Value
20. Services have special characteristics namely ______ which affect their
Marketing process
a. Intangibility
b. Inseparability
c. Heterogeneity
d. Perishability
e. All the above
21. Just in time technique is wider acceptance world over. The technique was
first introduced in
a. India
b. Indonesia
c. Japan
d. America
e. None of these
22. Consumer day is celebrated on ___________ (Ans: March 15th )
23. In on‐line marketing, there is
a. No exchange
b. Exchange is the core of marketing
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c. Guarantee
d. Only Warrantee
e. None of these
24. Which among the following is /are characteristics of common market ?
a. A common external trade policy exist
b. There are no trade barriers among members
c. Creates mobility of factors of production
d. All of these.
25. In case of Diamond, if the price goes up slightly, demand will fall by a
much larger margin. The demand is
a. Zero elastic.
b. Highly price elastic.
c. Income elastic.
d. Low price elastic.
e. None of these
26. In modern times ________ is defined as the 5th P of Marketing
a. Policy
b. Period
c. Perception
d. Packaging
e. None of these

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27. Advertising creates consumers demand for products that they would
otherwise not feel a need to buy. This statement is
a. Partially true
b. Absolutely true
c. Partially biased
d. Any one of the above
e. None of the above
28. The Strategy used to charge different prices for the same product is called
a. Price discrimination
b. Price Revision
c. Tariffs
d. Restrictions
e. None of these
29. The nature of Internet commerce can best be described as
a. Tangible
b. Non‐territorial
c. Territorial
d. Both a & b
e. None of these
30. The law of Pull & Push of Web Marketing refers to
a. Pull people to your site, then push quality information to them.
b. Pull people to your site and force them to purchase
c. Push people into your business
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d. Pull the interest of people
e. None of these
31. What is the first thing about an advertisement that attracts your attention ?
a. Product
b. Music
c. Model
d. Special effects
e. None of these
32. M‐Commerce is a new term in latest marketing technique. It is ______
a. Misuse of Mobile phones & E‐Commerce
b. Mobile Phones in Marketing
c. Marketing by Commerce Students
d. Mega Commercial activities
e. None of these
33. If the market share of a company is increasing
a. It is a sign of progress
b. The company must take the action to arrest the trend
c .Both a & b.
d. Neither a nor b
e. None of these

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34. In modern days sales approach is based on
a. Value sharing
b. Relation building
c. Co‐ordinated approach
d. All the above
e. None of these
35. What do you mean by Delphi Technique in Market Research?
a. In this a questionnaire is prepared
b. Depth Interviews are conducted
c. Information is elicited by means of discussion s with various
experts in the field
d. All the above
e. None of these
36. In the AIDAS theory of selling 'D' stands for
a. Determinants
b. Demand
c. Desire
d. Development
e. None of these
37. Which criteria should be adopted by a marketer for a brand extension
decision?
a, The fit
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b. The Value perception
c. Competitive edge
d. All the above
e. None of these
38. The quantity for which orders are placed when stock reaches the re‐order
level is called
a. EOQ
b. EPQ
c. DOQ
d. MOQ
e. None of these
39. In testing a new product, concept testing is
a. Customer reaction to the idea of product
b. Sales man reaction to the idea of product
c. To put the real product into a few selected markets
d. To assess the total product performance
e. None of these
40. Niche Marketing refers to
a. A strategy that specialises in limited or unique product
category
b. A strategy that specialises Niche products
c. Both a & b
d. Neither a Nor b
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e. None of these
41. Which of the following is the best definition of value?
a. A technical measure of a company's selling price relative to its
production costs.
b. A measure of the mark‐up charged by companies
c. The lowest prices available to consumers
d. The best
42. Which of the following is NOT usually defined as an element of the
marketing mix?
a. Products
b. People
c. Place
d. Profits
43. Peter Drucker noted the relationship between selling and marketing in the
following terms:
a. Marketing is a subsidiary component of selling
b. The aim of marketing is to make selling superfluous
c. The aim of selling is to make marketing superfluous
d. Selling
44. Which of the following statements is NOT true about the concept of a
customer?
a. A customer and consumer are always the same thing ‐ the terms are
completely interchangeable
b. Customers can be described as clients
c. A customer doesn't necessarily consume the product that they have
purchased
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d. Students
45. Which of the following is the best definition of value?
a. A technical measure of a company's selling price relative to its
production costs.
b. A measure of the mark‐up charged by companies
c. The lowest prices available to consumers
d. The best ratio of benefits to costs available to buyers
46. A value chain in marketing is:
a. An operator of discounts stores with many branches
b. A factory outlet store
c. A process by which goods gain value as they pass through different
levels of intermediaries
d. A process by which companies target value conscious customers
47. In general, concern with the ecological environment is most closely
associated with economies characterized by:
a. Rapid economic growth
b. High levels of GDP per capita
c. Low levels of GDP per capita
d. Abundant natural resources
48. Business ethics is essentially about:
a. Universal codes of business practice
b. Societal orientated behaviour by firms
c. A culturally conditioned agreement on what constitutes right and wrong
d. Honesty
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e. None of these
49. Which of the following is least likely to be associated with a firm's macro‐
environment?
a. Study of the changing birth rate
b. Analysis of household savings ratios
c. A new staff incentive scheme
d Cultural convergence
e. None of these
50. Which of the following is NOT part of an organization's micro‐
environment?
a. Customers
b. Suppliers
c. Competitors
d. Government legislation
e. None of these
51. Which of the following is an element of an organization's internal‐
environment?
a. Competitors
b. Employees
c. Wholesalers
d. Retailers
e. None of these
52. A method of comparing the internal capabilities of an organization with
the demands and challenges of its external environment is referred to as:
a. SHOT analysis
b. SWOT analysis
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c. Stakeholder analysis
d. Shareholder analysis
e. None of these
53. For most people, the purchase of cheese for daily use can be described as
a:
a. Routine re‐buys
b. Modified rebuy
c. Completely novel purchase
d. High involvement product
e. None of these
54. Which of the following statements best describes the concept of
involvement in the context of buyer behavior?
a. The length of time involved in the buying process
b. The potential impact of a product on an individual's self‐identity
c. The number of people involved in the decision‐making unit
d. The complexity of an order
e. None of these
55. Buying decisions generally follow a pattern of overlapping stages. Which
of the following best describes the typical stages of the buying process?
a. Need recognition > Information search > Evaluation > Decision > Post
purchase evaluation
b. Need recognition > Evaluation > Information search > Decision > Post
purchase evaluation
c. Information search > Need recognition > Evaluation > Decision > Post
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purchase evaluation
d. Need recognition > Information search > Decision > Evaluation > Post
purchase evaluation
e. None of these
56. Needs differ from wants because:
a. Wants are a socialized manifestation of underlying needs
b. Needs are a socialized manifest Needs are historical; wants are about the
futuretation of underlying wants
c. Needs are historical; wants are about the future
d. Needs and wants are exactly the same
e. None of these
57. Which of the following levels of Maslow's Hierarchy of Needs is most
likely to be associated with consumers' purchase of goods which appeal to
their inner sense of peace of mind (e.g. art classes)?
a. Self‐actualization
b. Love
c. Security
d. Physiological
e. None of these
58. An individual is considering buying a new microwave cooker and is faced
with the possibility of several models. Which of the following describes
the widest range of microwave cookers, which the buyer considers in some
form?
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Discussion Board

a. The choice set
b. The awareness set
c. The total set
d. The pre‐evaluation set
e. None of these
59. A company uses The Coors to endorse its range of snack foods. This
endorsement is likely to be particularly effective if the Coors are seen by
Large numbers of the company's target market as:
a) A primary reference group.
b) A tertiary reference group.
c) A secondary reference group.
d) A non‐reference group.
e. None of these
60. Which of the following consumer responses is LEAST likely to overcome
cognitive dissonance experienced by a consumer who is dissatisfied with
their purchase?
a) Rationalizing to ourselves that a product is actually quite good
b) Seeing the product in a different light so that we emphasize the bad
aspects of a product
c) Seeing the product in a different light so that we emphasize the good
aspects of a product
d) Complaining and returning goods to the supplier
e. None of these

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Discussion Board

61. Which of the following labels is NOT associated with a role in a buying
Decision Making Unit?
a) Supplier
b) Gatekeeper
c) Decision maker
d) User
e. None of these
62. A secretary who answers calls for a company buyer may be taking on
which role within the company's decision‐making unit?
a) User
b) Influencer
c) Gatekeeper
d) Buyer
e. None of these
63. Which of the following is NOT an element of a Marketing Information
System?
a) Marketing research
b) Decision support system
c) Production monitoring system
d) Internal r
e. None of these
64. Market ______ is the process of identifying groups of customers with
basically similar wants, needs, preferences or buying behaviors.
a) Development
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Discussion Board

b) Positioning
c) Segmentation
d) Targeting
e. None of these
65. Marketers use a number of definitions of household income in their
segmentation and targeting activities. What does disposable income refer
to?
a) The income that individuals have available to spend after taxation
b) Income before the deduction of taxes
c) Total gross income
d) Income less child benefit receipts
e. None of these
66. Positioning of a product is based on:
a) The price charged for the product.
b) The promotional pitch for the product.
c) Product characteristics.
d) All of the above
e. None of these
67. A marketer needs to be aware of the criteria by which the effectiveness of
their segmentation procedures can be assessed. Which of the following is
NOT a criterion for evaluating the resulting market segments?
a) Perishability
b) Size of the resulting segment
c) Measurability
d) Accessibility
e. None of these
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Discussion Board

68. What does the acronym FMCG refer to?
a) Functional, mid‐priced, or compulsory goods
b) Famous manufacturer's clothing goods (i.e. designer labels)
c) Fast moving consumer goods
d) Frequent market, consumption goods
e. None of these
69. Five stages in the product life cycle can be identified. Which of the
following is not a generally accepted stage?
a) Introduction
b) Peak
c) Growth
d) Maturity
e. None of these
70. In a buying process the first sage is
a. Product awareness
b. Need arousal
c. Information search
d. Purchase decision
e. None of these
1. All marketing activities that attempt to stimulate quick buyer action or immediate sales of a
product are known as .
a. Sponsorship b. Advertising c. personal selling d. sales promotion

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Discussion Board

2. In general, the single‐voice, or synergy principle, involves selecting a specific for a brand.
a. positioning statement b. marketing mix c. pricing strategy
d. advertising budget
3. Which one of the following is the greatest obstacle to implementing integrated marketing
communications?
a. Few providers of marketing communications services have the skills to execute IMC programs.
b. There is a lack of interest in IMC by top management.
c. The cost for implementing an IMC program is difficult to justify.
d. Little can be gained by coordinating the various marketing communications elements.
4. The premise underlying geodemographic targeting is that people who also share demographic and
lifestyle similarities.
a. are in the same income category
b. reside in similar areas
c. are of the same age
d. are of the same gender
5. A detergent that advertises how clean it gets clothes is appealing to the consumer need.
a. Functional b. Symbolic c. Biological d. Utilitarian
6. By definition, simply means that consumers come in contact with the marketer's message.
a. Perception b. Exposure c. Attention d. Comprehension
7. Marketers can enhance the consumers' ability to access knowledge structures by
a. using loud music b. using colorful ads
c. employing verbal framing d. repeating brand information
8. Spurithy notices the television commercial because of the loud sounds. This is an example of .
a. exposure b. involuntary attention c. nonvoluntary attention d. voluntary attention
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Discussion Board

9. Which of the following is NOT a requirement for setting advertising objectives?
a. Objectives must specify the amount of change.
b. Objectives must be stated in terms of profits.
c. Objectives must be realistic.
d. Objectives must be internally consistent.
10. An) advertising objective is aimed at achieving communication outcomes that precede behavior.
a. precise b. planned c. indirect d. direct
11. A clothing store that sets their advertising budget by following the major competitor and adding an
additional 15 percent is using the method.
a. percentage‐of‐sales b. arbitrary allocation
c. objective‐and‐task d. competitive parity
12. The advertising budget procedure used most frequently is the method.
a. arbitrary allocation b. marginal cost c. competitive parity
d. None of the above.
13. Which value is derived from the need for variety and achieving an exciting life?
a. self‐direction b. hedonism c. achievement d. stimulation
14. Marketers are sometimes accused of deceptive practices that lead consumers to believe they will
get more value than they actually do. ______________ includes practices such as falsely
advertising "factory" or "wholesale" prices or a large price reduction from a phony high retail price.
a. Deceptive promotion b. Deceptive packaging
c. Deceptive pricing d. Deceptive cost structure
15. The study of human populations in terms of size, density, location, age, gender, race, occupation,
and other statistics is called:
a. Geothermy. b. Demography.
c. Ethnography. d. Hemos‐popography.
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Discussion Board

16. When companies make marketing decisions by considering consumers' wants and the long‐run
interests of the company, consumer, and the general population, they are practicing which of the
following principles?
a. Innovative marketing b. Consumer‐oriented marketing
c. Value marketing d. Societal marketing
17. Regulations that arise to ensure that firms take responsibility for the social costs of their products
or production processes stem from which reason for government legislation of business?
a. To protect companies from each other.
b. To protect consumers from unfair business practices.
c. To protect the interests of society.
d. To protect businesses from unfair consumer demands.
18. One of the most common problems with using internal database information is that:
a. since it was probably collected for some other purpose, it may be incomplete or wrong.
b. it is usually expensive to retrieve.
c. top executives are usually unwilling to relinquish data, therefore, the data has limits.
d. the data is almost always unsecured and, therefore, suspect as to reliability.
19. All of the following are thought to be sources of new product ideas EXCEPT:
a. internal sources. b. customers.
c. competitors. d. the local library.
20. Each salesperson is assigned to an exclusive area in which to sell the company's full line of products
or services in which type of sales force structure?
a. Territorial sales force. b. Product sales force.
c. Customer sales force. d. Hybrid sales force.
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Discussion Board

1 The traditional Marketing style involves (c)
a Telemarketing b Indirect marketing c Direct marketing
2 Modern methods of Marketing inclued ( e)
a Publicity on the net b Tele Marketing c Business through e‐mail. d Advt on the net e all the
above
3 A lead means (a)
a a prospect who is more likely to avail of the Bank's Product b company c farmer
4 A call means (c)
a calling on friends b to take telephone calls c calling on prospective customers.
5 Cross selling means (b)
a identifying customers needs b matching the products to customers needs c convincing the
customers
6 Innovation means (c)
a inspiration b additional perquisites c implementing new ideas / methods
7 A true marketing mindset requires (a)
a active mindset b Passive mindset c controlled mindset
8 Sales forecasting involves (d)
a sales palnning and pricing b distribution of channels c Cosumer tastes d all the above
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Discussion Board

9 A target market is (c)
a entire country b entire city c that which consists of customers who need the identified product
10 Marketing plan helps in (a)
a better lead generation b better customers service c better systems
11 Market information means (c)
a knowledge of shops b konwledge of places c knowledge of customer profile and product mix
12 For effective marketing, the sales man should have which of these qualities (d)
a Creativity b team spirit and motivaiton c effective communication skills d all the above
13 Which Indian Company has the largest market capitalization (b)
a ONGC b Reliance c Infosys d Satyam

14 What market philosophy best expresses laissez faire (c)
a Fiscal restraint b priming the pump c caveat emptor d supply and demand
15 The concept that consumers will favour those products which offer maximum quality
performance and features and asks for continuous product imporvement is (a)
a marketing concept b product concept c production concept
16 Sales Promotion (a)
a A must for competitive advantage b compulsary c waste of time

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Discussion Board

17 Oligopoly is a market organisation in which there are (c)
a no sellers b few buyers c few sellers

18 In monopoly there are (b)
a are few sellers b is one seller c are many sellers
19 "A monopolist is a market with one seller" is given by (a)
a P C Dooley b A J Braff c Letwitch Observes
20 Which of the following is not the factors of production (d)
a land b labour c capital d entrepreneur
21 A leader may be manager but a manager need not be a leader (a)
a True b False c None of the above
22 Money market is market for (b)
a long term loans b short loans c medium term loans
23 Market with one buyer and one seller (a)
a monopoly b bi monopoly c bilateral
24 Marketing management is a term ______ than sales management (a)
a wider b norrower c equal
25 Promoting mix inclueds (a)
a advertising, publicity, personal selling and promotion
b physical attributes, branch package and product life cycle
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Discussion Board

c Brand name, product benifits, credit delivery
26 The systematic gathering and analyzing of data on a particular marketing problem is (c)
a promotional research b markeing information c marketing research
27 A pricing strategy aimed at paying current or past due bills is (a)
a survival pricing b brand pricing c status quo pricing
28 Marketing provides maximum satisfaction of (b)
a profits b human wants c none of the above
29 Moral advertising is also known as (a)
a outdoor advertising b direct mail advertising c both a and b
30 LIC agent is an example of (c)
a Two level marketing b Three level marketing c direct marketing
31 Marketing manager may be classified in the category of (b)
a top level management b middle level management c lower levle management
32 Selling costs are found under (b)
a monopoly b monopolysitc competition c oligopoly
33 Product differentiation is an important characterstic of (c)
a perfect market b imperfect market c monopolysitc competition

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Discussion Board

34 Many firms producing homogeneous products can be generally treated as (a)
a perfect competition b bilateral monopoly c oligopoly
35 _____ means giving a name to a product so as to distinguish it from others (b)
a grading b branding c promotion
36 Who coined the expression of marketing mix (b)
a Adam Smith b James Culliton c Peter F Drucker
37 " With you all the Way" is the slogan of (c)
a Bank of India b Union Bank of India c State Bank of India
38 In which promotion is necessary (c)
a introduction b growth c decline
39 MRP stands for (c)
a management Resource planning b Marketing research planning
c Manufacturing resource planning
40 Customer satisfying process is the view (b)
a selling b marketing c both
41 "A coloured or crooked perception of marketing and short‐sightedness about (a)
business is
a marketing myopia b marketing mix c product concept

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Discussion Board

42 In an organisaiton which department plays key role (c)
a HR Dept b Finance Dept c Marketing dept
43 Revenue generating dept in an organisation (a)
a marketing dept b Fiance dept c none of these
44 PLC stands for (b)
a Product Life Cycle b Product Launching Cycle c None of these
45 Marketing planningis concerned with (a)
a Planning sales force size and deployment b Planning consignment sales
46 Marketing is an ongoing process (a)
a Planning and execution of marketing mix b Selling in the market
47 The best way of improving the business is (a)
a win over the customer b advertisemnt c increasing the no. of products

48 One of the shortest definitions of marketing is (c)
a advertisement b range of products c meeting needs profitably

49 A successful manage is one who (d)
a maximise staff productivity b bring down overheads c market driven profit conscious
and customer obsessed culture d all the above
50 To remain vibrant in the turbulant marketing field one should have the ability of ‐‐‐‐
forecasting, emerging customer expectations and how best they can be satisfied on an
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Discussion Board

ongoing basis.
51 The earlier concept of customers " save and buy" gradually shifted to "buy and repay"

52 The main focus of selling is on product, where as in marketing the focus is on the buyer
and his specific needs.
53 One of the aims of marketing is to make available the products (d)
a at right place b at right time c at right price d all the above
53 .Every product will pass through the life cycle of (e)
a birth b growth c saturation d decline e all the above
54 The various components of promotion in achieving marketing objectives is (e)
a advertising b publicity c sales promotion d personal selling e all the above

1 A prospect means
a) any customer who walks into the bank b) an employee of
the bank c) a customer who is likely to be interested in
bank's product or service d) a depositor of the bank' e) a
borrower of the bank

2 A lead means
a) a prospect who is more likely to avail of the Bank's product
b) a political leader c) a religious leader d) a bank chairman e)
None of these

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Discussion Board

3 Innovation means
a) Compensation b) inspiration c) additional perquisites d)
implementing new ideas or new methods e) None of these

4 A Call means
a) calling on friends b) calling on bank employees c) calling on
prospective customers d) to make telephone calls e) calling
on relatives

5 The Traditional Marketing style involves
a) Telemarketing b) Digital Marketing c) Indirect Marketing d)
Direct Marketing e) All of these

6 Modern Methord of Marketing include
a) Publicity on the net b) Advertisement on the net c)
Soliciting business through e‐mails d) Tele marketing e) All of
these

7 A true marketing requires
a) Command and other mindset b) Control Mindset c) Passive
mindset d) Active mindset e) None of these

8 Which of the following sentences is true?
a) Marketing is not required in a Buyers' Market b) Marketing
is not required in a Sellers's market c) Marketing is not
required due to competition d) Marketing is not required due
to liberalization e) Marketing is not required due to
globalisation

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Discussion Board

9 For effective marketing the salesmen should have which of
these qualities?
a) Creativity b) Team spirit c) Motivation d) Effective
communication skills e) All of these

10 Market information means
a) Knowledge of shops and bazaars b) Knowledge of
shopping malls c) Knowledge of customer profile and product
mix d) knowledge of various languages e) None of these

11 Market Research is needed for
a) checking the market area b) checking the right product to
be sold c) making proper marketing decisions d) deciding
right time to sell e) All of these

12 Which of the following statement is true
a) Marketing makes the company to go into loss due to
higher expenses b) Marketing is not required in profit making
companies c) Marketing sharpens the minds of the
employees d) Marketing is a time bound seasonal function e)
Marketing is a waste of time

13 Marketing plan helps in
a) better lead generation b) better systems c) better results
d) improved balance sheet e) better customer service

14 If Marketing is done effectively which of the following is not
required?
a) Advertisement b) Publicity c) Market Research d) Market
Segmentation e) None of these
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Discussion Board

15 Motivation means
a) Inspiring employees to perform better b) Better
communication skills c) Sales Coaching d) Market Research e)
None of these

16 In a Selling Process in today's world?
a) Only standard products are sold b) No customization
required c) the seller need not have product knowledge d)
the seller should aim at customer satisfaction e) only
quantum of sales matters

17 Find the true statement
a) Marketing is a waste of the employees's time b) Marketing
is not required in India due to its vast population c)
Marketing involves additional work d) Marketing involves
team work e) Marketing is not required today due to IT
advancement

18 A Target market is
a) entire country b) entire city c) entire globe d) that which
consists of customers who need the identified product e) all
of these

19 Sales forecasting involves
a) Sales Planning b) Sales Pricing c) Distribution Channels d)
Consumer tastes e) All of these

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Discussion Board

20 Which of the following product is being sold under the brand
name ZODIAC
a) Shirts b) Ties c) Both A and B d) Liberty e)
21 SWIFT ‐ cars are being manufactured by
a) DCM b) Maruti c) Premier Automobiles d) Hyundai

22 With you all the way is the slogan of
a) Vodafone b) SBI c) ICICI d) Raymonds

23 Which company used the slogan "The complete Man"
a) DCM b) GRASIM c) RAYMONDS d) VIMAL

24 Which brand uses the slogan "Made for each other" for its
cigarettes?
a) Cavenders b) Four Square c) Red & White d) Wills

25 Cross Selling means
a) Identifying customer needs b) matching the products to
customer needs c) convincing the customers of product
benefits d) responding to questions and objections of
customers e) all of these

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Discussion Board

Marketing Fundamentals

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Marketing Fundamentals

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3. Evaluate the attractiveness

4. Select the target segments

5. Identify possible positioning

Dividing a market into distinct groups with

Market Segments & Niches

Market Segmentation Procedure

Bases For Segmenting Consumer

Ex- State-wise, City-wise

Buyers are divided into different groups on

Buyers are divided into groups on the

• Occasion, when they develop a need to

Segmentation reveals the market-segment

c. Deceptive pricing d. Deceptive cost structure

c. Ethnography. d. Hemos‐popography.

c. Value marketing d. Societal marketing

c. competitors. d. the local library.

c. Customer sales force. d. Hybrid sales force.

1 The traditional Marketing style involves (c)

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