Brel hy Tl) 0) Macleod ysl) Uh lee > cll) 10 Practice Sets Useful for SBI (BANK PO & CLERK) sth &z Other Exams Scanned by CamScanner“Marketingis the social process by which individuals and groups obtain what they need and want through creatingand exchanging products and value with others.” Philip Kotler Introduction to Marketing ‘Marketing is about identifying and meeting human and social needs. It is the process of communicating the value of a product or service to customers, for selling that product or service. Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others. Nature of Marketing * Marketing is a human activity. « Marketing is a social-economic activity. + Marketing is consumer-oriented process. + The core of marketing is product or service. + Marketing is based on exchange. + Marketing is both art and science. » Marketing is an universal acti Characteristics of Marketing » Marketing is a socially pervasive process « Organisation-wide function » Marketing is both a science and art + Voluntary exchange of values » Achievement of organisational objectives and customer needs + Selection of target markets « Beneficial to all the stakeholders Scope of Marketing 1. All the decisions related to product like size, colour, design, packaging, etc are taken with active participation of marketing department of the company. 2. All the decisions reloted to the consumers are taken after having studied the consumer's responses with respect to different products, different prices and brands, Elite ee ‘Scanned by CamScannerPF —voursmanboob. WOTapress. COME ! 2 1 promotional decisions, like choosing type saeeheung media, are also being taken ot markeuing me { under marketing activity j 4. An effective aficr sales services is formulated bby the marketing manager in order to satisfy j the consumer { Objectives of Marketing 4 + Provide satisfaction to customers Increase the demand wide better quality product to the Sansa pull Uv congenial ble sales volume + Generate profi Difference between Marketing and Selling Selling Marketing s Seling 1s confined 10 ng) and other persuasion of consumers to buy fms goods and marketing research, after etc Seling starts atter the Production process is over and ends with the handing over the money to the seller by the buyer. Ng prot Focus #s on earning profit ation of through maximisation of satisfaction, sales . 5 need is the All activites revove Pont around around the product that marketing has been produced fed Fragmented approach to achieve short-term gain, Scanned by CamScanner Marketing Aptitude Concepts of Marketing Marketing is based on many concepts as per the orientation and perception of the firms about the business and market place, those concepts are Exchange Concept This concept of marketing indicates that the exchange of a product between the seller and buyer is necessary. Production Concept Production dominates the thinking process ofthe consumers. Products produced in a great volume ata low unit cost are supported by the consumers, Product Concept In this concept, quality of the product is focused, Good and quality products ate provided to the customer. Sales Concept Large sales promotion is believed to maximise the selling. Organisations resort to aggressive advertising, high power personal selling, The Customer is being neglected in this concept. Marketing Myopia ‘When an organisation gives excessive attention to production or the product or selling at the cost of the ‘customers! actual needs then marketing myopia is created Pillars of Marketing Concepts + Target Market + Customer Needs + Integrated Marketing + Profitability Steps of Marketing Steps of marketing are as follows ( Determination of Organisational Objective These objectives provide direction for all Phases of the organisation and serve as standards in evaluating performance. In i G «Introduction to Marketing (ii) Assessing Organisational Resources By Gvaluating these resources, organisations can pinpoint their strengths and weaknesses. Strengths help organisations set objectives. develop plans for meeting objectives and rake advantage of marketing opportunities (ii Evaluating Risks and Opportunities Environmental factors—competitive, political, legal, economic, technological and social-also influence marketing opportunities. The emergence of new technologies oF innovations may open new opportunities for under-marketed products. (iv) Marketing Strategy The marketing strategy is the overall company program for selecting a particular target market and then satisfying consumers in that segment. (v) Implementing and Monitoring Marketing Plans Ac every step of the marketing planning process, marketing managers use feedback t0 monitor and adapt strategies when actual performance fails to match expectations. Types of Marketing There are two types of marketing () Marketing to Individuals It is also called ‘consumer goods, Products which are purchased by the ultimate consumers for satisfying their personal needs and desires are referred to as consumer goods. eg., toothpaste, soap, brush, ediable oil, textiles, shampoo, shoes, etc. Consumer goods are classified as (@) Convenience Goods Consumer goods purchased frequently, immediately and with least time efforts are referred to as convenience goods like pen, biscuits, newspapers, medicines, etc. (6) Shopping Goods Shopping goods are those consumer goods, in the purchase of which buyers devote considerable time to compare the quality, price, style, suitability at different stores before making final purchase. eg, radio, refrigerator, television, cloth, etc. ere Scanned by CamScanner (0) Speciality Goods People make special fons iat purchase the service of speciality goods. e.g., restaurant, tailor, etc (ii) Marketing to Organisations Ic is also called industrial goods. Industrial goods are goods which are used as inputs in producing other products. The examples of such products are raw material, engines, lubricants, fabricating, material, installation, operating suppliers: etc Functions of Marketing ‘The functions of marketing and have been discussed below Marketing Research Ie is a process of collection and analysing information regarding customer needs and buying habits, nature of competition prevailing prices effectiveness of advertising media, etc. Product Planning and Development The task of marketing begins with planning and designing a product for the consumers. It can also be done while modifying and improving an cexisting product. Buying and Assembling Ik refers to buying and collection of required goods for resale. Ie is primarily relevant to those business organisations who are engaged in trading activities. Packaging and Labelling Te involves putting the goods in attractive packets, containers according to the convenience of consumers. As suitable and attractive packages increase the demand for the products to a great extent. Labelling means putting identification marks on the package. It contains information about the producer of the product. Standardisation and Grading Standardisation helps in promoting the sale of the product by increasing consumer's confidence in the product quality. Grading involves separatingyoursmahboob.wordpress.com 4 products into different classes on the basis of certain predetermined standards related 0 size and quality Branding Ic refers to giving an attractive name, symbol or identity mark to the product to make it different from other products. Pricing Ik involves decisions regarding fixation of product prices. Pricing is done keeping in view the product costs, the capacity of customers to pay and the prices of the competitive products. Transportation Transportation means carrying goods from one place to another. It helps in assembling and dispersing the goods. It links together the producers and consumers who are located at different places. Promotion Promotion means all the activities performed by a producer or by a dealer or by a businessman to increase his sales. Main purpose of promotion acitivities is to encourage and pursuade the consumers to buy a particular product. Role of Marketing Roles of marketing are as follows Role of Marketing in Business + Technological changes are taking place at fast pace, + Competition has become intense in the market. + Consumer tastes changing very fast. + Production is organised on a large-scale. Role of Marketing in Society + Ic makes new and better products available to people, increasing ther standard of ving, + It helps in creation of new jobs. + Importance of marketing. and preferences are “Scanned by CamScanner ~ Marketing Aptitui. Importance of Marketing Importance of marketing can be discused as fallow, (9 Importance of Marketing to the Consumers + Provides different information about the product and services. + Helps ro know the different benefit techniques of products. + Provides satisfaction by providing differen, products to meet their demand and taste when they need. + Facilitates customers to select the best one according to their demand and capability (ii) Importance of Marketing to the Firms « Easily distribute the products. + Suggests to manage the transportation and wire-housing systems which help the firm to delivery the product. + Provides valuable information to make effective plan for future and right decision, + Suggests to reduce unnecessary costs and utilise the revenue in proper way. + Accumulates the opinion and ideas of different customers and supplies to the management, (iii) Importance of Marketing to the Society + An important source for the creation of employment opportunities. + Helps in developing the living standard. + Helps to utilise the different resources such as natural, financial, physical and human resources, Tit-Bits i) = Finance is like blood of business. * Marketing is successful when salesmen are effectively trained. * In marketing, it is necessary to identify potential sellers, potential products and services. potential customers and key existing * Marketing strategy means ways to improve marketing activities. — = Marketing iS definitely required when supply tS and exceeds demand ——— Sélling_means selling other products to ‘existing customers."Me, Say 1. The aim of successful marketing is (1) to inerease the sale Tog, (2) to increase the profit (3) to increase the output of sellers (4) Allo the above (5) None of the above Ore 2. Which among the following come under ‘facilitating’ category of marketing functions? (1) Standardising and grading (2) Standardising and grading, financing and ang risk taking (3) Standardising and grading, financing risk taking, securing market information (4) All of the above the (3) None of the above 5 3. Which among the following is the most basic 4 concept underlying marketing? (1) Product t (2) Market (3) Needs, wants and demands G4) All of the above (5) None of the above 4. The need or want for a particular product becomes a demand, when (1) the product/service is available (2) it is backed by buying power (3) a product represents that particular need (4) All of the above (3) None of the above 5. Which among the following is called like blood of business? (1) Marketing (2) Product (3) Finance (4) All of the above (5) None of the above 6. Which among the following is included in ‘marketing decisions? (1) Promotion decision (2) Project cost decision (3) Finance decision (4) Alll of the above (5) None of the above —— Scanned by CamScanner oy Check Your Skills 7 Which among the following is a customer oriented concept? (2) Seling concept (2) Marketing concept (3) Production concept (4) All of these (5) None of these 8. Social marketing concept is based upon (1) large target market with active buyers (2) customer satisfaction and customer welfare (3) realisation of maximum profit through service of society (4) All of the above (5) None of the above 9. Which among the following may be called a pillar of marketing concept? (1) Customer orientation (2) Product planning (3) Cost budgeting (4) All of the above (5) None of the above 10. Find the true statement. (1) Marketing is a waste of the employee's time (2) Marketing is not required in India due to its vast population (3) Marketing involves additional work (4) Marketing involves team work (5) Marketing is not required today due to IT advancement 11. Market information means (1) knowledge of shops and bazaars (2) knowledge of shopping malls (3) knowledge of customer prof! mix (4) knowledge of various languages (5) None of the above 12. If marketing is done effectively which of the following is not required? (1) Advertisement (2) Publicity (3) Market research (4) Market segmentation (5) None of the above «4 product“3. Profit by customer satisfaction is a tool of (1) old concept of marketing (2) new concept of marketing (3) production A) price (5) None of the above 14, Nature of marketing involves 1) promotion decision (2) determination of distibton channel (3) after sale service (4) All of the above (3) None of the above 15. Marketing is successfull when (1) demand exceeds supply (2) supply exceeds demand (3) salesmen are effectively trained (4) Al of the above (5) None of the above 16. Marketing is best defined as (2) facilitating relationships satisfying exchange (2) distribution of produets at lower price to the stores (3) distribution of products at higher price to the stores (4) promoting the produets (5) selling the products 17, The marketing concept isa way of thinking ora ‘management philosophy that affects (1) only marketing activities (2) only the efforts of sales personnel (3) most efforts of the organisation (4) only customer relationships (3) None of the above 18. Aggressive marketing is necessitated due to (2) globalisation (2/ increased competition (3) increased production (4) increased job opportunities (5) All of the above 19. The exchange concept of marketing place between... and sakes (1) seller, buyer (2) customer, consumer (3) consumer, buyer (4) buyer, purchaser (5) None of the above ‘Scanned by CamScanner ). Marketing stress is on needs of the 20. vinereas selling stress on the need of (1) market (2) seller (3) product (4) consumer {5) None of the above ‘Marketing research involves (i) collection of facts (2) analysis of fet (S) gathering recor’ ¢ “ a developing suitable marketing strategies (5) Allof the above Which of the following is/are the marketing concepts? (1) Bxchange concept (2) Production concept (3) Product concept (4) Sales concept (5) Al of the above Which of the following is/are function of marketing? (1) Marketing research (2) Product planning (3) Buying and assembling (4) Branding and packaging (5) Allof the above Which of the following is the function of promotional activities? (1) To motivate the customer product, (2) To sell the goods to the customers (3) To fix the price of the product (4) To store the unsold goods (5) To produce more goods 22 22. 23. to buy the Marketing involves earning profit through maximisation of (1) sales (2) production (3) expansion (4) customer's satisfaction (2) None of the above Selling involves earning maximisation of (1) sales (3) marketing (5) None of these 26, profit through (2) profit (4) production7B Introduction to Marketing 27, in marketing, the consumer is king, whereas in selling is king. 1) product 2) production 7) promotion (5) None of the above 'B. Which of the following is/are objective of marketing? (1) Satisfying customers (2) Inereasing de (3) Creating goodwill fo the organisation (4) Providing better quality products (5) All of the above 29. Understand marketing as (2) only selling, profit and social needs (3) to focus on customer (4) to focus only on producing (5) Both 2° and “3° 30. Marketing is (1) consumer orie [SBI Clerk 2008), ented (3) producer oriented (4) Both ‘1’ and ‘2° (5) Both °2' and “3 31. Proper marketing requires (2) planning (2) sympathy (3) Knowledge of products (4) Both ‘Vand 2 (5) Both ‘1’ and ‘3 32. In marketing, it is necessary to identify [SBI Clerk 2008] [SBI Clerk 2008] (1) potential sellers (2) potential products and services (3) key existing and potential customers (4) Both ‘1 and “2 (5) All of the above 33. Marketing is influenced by (1) product demand (2) public taste (3) buyer behaviour (4) brand image (5) All of the above [S81 Clerk 2009} yoursmahboob.wordpress.com 7 34. The sale aim of marketing is to {S81 Clerk 2010), 1) increase sales (2) increoe the numberof employees (3) incresses profits (4) increases produetion (5) Allof the above ; 35. The ultimate aim of marketing is to provide {S81 Clerk 2011] (1) more business to the company (2) more profit, (3) more statt (4) more production (5) more products 36. Selling process includes _{SBI Clerk 2011], (2) publicity (2) lead generation (3) cross country contacts (4) product designing, (3) product redesigning 37. Marketing strategy means (1) idea for further income (2) old techniques of sales (3) ways to improve marketing activities (4) ways to inerease production (5) networking 38. Product design is a function of [SBI Clerk 2011] (1) front office staf (2) back office staff (3) management (4) marketing and research team (5) loan section 39. Marketing has taken a prominent position during the last decade due to [SB1 Clerk 2012] (1) increased competition (2) better literacy rate (3) foreign compulsions (4) government instructions (5) Reserve Bank of India Policy guidelines 40. Marketing is definitely required when (1) demand exceeds supply {SBI Clerk 2012] (2) supply exceeds demand (3) supply equals demand (4) staff is in excess (5) there is no monopuly 41. The traditional marketing style involves (1) door-to-door campaigns (2) sending E-mails (3) telemarketing (4) SMS campaigns (5) virtual marketing [SBI Clerk 2011] eae A Scanned by CamScanner(1) improve the balance sheet (2) increase recruitment (9) seling a company (8) increase profits (9 salina produto services of company Aree cor (5) increase branch network 43, Selling is {581 Clerk 2012, 091 gas Cross selling’ means = (1) same as marketing oe ISB Clerk 2 (2) more than marketing (1) selling to enemies (2) selling new pr (3) offering discounts (8) reversal of a sale (4) « sub-funetion of marketing (4) selling other products to existing custo (5) nothing to do with marketing (5) -mblic relations ‘44, Marketing is the function of [SBI Clerk 2012) 47- Marketing opportunities means (1) only sales persons (1) availability of sales persons (2) only counter stat (2) availability of data (3) only qualified persons (3) new product launching (4) scope for marketing (4) top bosses (5) a collective function of all staff (5) evaluation of performance © Analyse Yourself. 14 20 38 42 80 67 7270 8@® 2. 20 28 8@ 4H Bo wm 7 o 1 ao ome 2.6) 2 6) 2.6) a) 25.) 26 (0) 27.) 2B) 29. (3) 90, a 6) 92) 9. 6) 34) 35.) 88.) 37 3B) 38. 4) 40. 41. (1) 42 (4) 43. (8) 44.) 45.) 48 (4) 47.) EMA oe ‘Scanned by CamScannerty yoursmandood.wordpress.com "ha, “a, 1 ct ) “A company’s marketing environment consists of the factors and forces outside marketing that affect marketing management's ability to ‘build and maintain successful relationship swith target customers.” Philip Kotler Marketing Environment Marketing environment refers to the factors and forces that affect a firm's ability to build and maintain successful relationship with customers. Some of the factors are controllable, while some others are uncontrollable. Icis the responsibility of the marketing manager to change the company's policies along with the changing environment. Nature of Marketing Environment: + Changes as per environment» Communication + Challenges + Wide market Characteristics of Marketing Environment: + Marketing environment plays a vital role while taking decisions related to marketing, + Its limic is decided on the basis of geographical factors. + There are some non-controllable variables included in marketing environment which effect the potentiality of a company and provide new direction to the market. + New opportunities and risks always rise in the marketing environment which reinforces marketing experiments and research. + Consumers are divided in homogeneous sections for marketing of a product on the basis of marketing environment. Components of Marketing Environment There are following components of marketing environment Internal Environment Forces and actions inside the firm that affect the marketing operation composed of internal stakeholders and the other functional areas within the business organisation are known as internal environment of marketing, nn Scanned by CamScanner‘The internal environment includes + The human resource department += The operations department 1 The accounting and finance department + The research and development department External Environment The external environment is composed of 1, Micro environment 2. Macro environment Both these types of marketing environment affect cach other to some extent. 1. Micro Environment The micro environment refers to the forces that close tothe company and afec it ability to serve its customers. It includes the company itself its suppliers, marketing intermediaries, customer ‘markets and public. Factors affecting micro environment are (9 Company The company aspect of micro environment refers to the internal environment of the company. This includes all departments like management, finance, research and development, purchasing operations and accounting. Each of these departments has an impact on marketing decisions. (4 Marketing Intermediaries intermediaries refers to resellers, wholesales Physical distribution firms, marketing services agencies and financial intermediaries, Customers There are diferent type of customer markets like consumer markets, business markers, markets and reseller markets Marketing Public, media public, citizen. action public. lic, government public, Public, local public, genera ‘Scanned by CamScanner lacro Environment Frese ‘environment refers to all fo are part of the larger society and micro environment. It includes concepts demography, economy, natural technology, politics and culture. Factors affecting macro environment are (@ Demographic Environment Demograp daca_help in preparing geographigg marketing plans, household” marker, plans, age and sexwise plans. It influence | behaviour of consumers which, in ty, will have direct impact on market place A marketer’ must communicate wig consumers, anticipate problems, respon to complaints and make sure thatthe fry operates properly and smoothly. ( Social-Cultural Environment It includes culture, traditions, beliefs, values and lig styles of the people. Social responsibility has crept into the ‘marketing literature as an alternative tothe market concept. (ii) Economic Environment The economic environment depends on current income, prices, savings, debe and credit availaily, inflation rate, tax rates, etc. (i) Poltical-Legal Environment ‘The politcal and legal environment consists of laws, Government agencies and pressure groups that influence various organisations ard individuals. The other laws viz labour laws, corporate laws, constitutional laws, tae laws, pollution control act, industrial policy aso have a great impact on markets! (¥) Technological Environment It includes technology selection, change in technology and’ governments approach in respect of technology. 7 Major new technologies stimulate the economy's growth rate.Marketing Environment Sy (v) Natural Environment It involves the natural resources that are needed as inputs by marketers In India, many NGOs have continuously fought against indiscriminate mining, use of harmful pesticides, deforestation, introduction of genetically modified foods, pollution of rivers and underground water. ay, Uncontroliable factors of marketing Sty environment are policy ‘of the firm. hs organisational structure. indirect environment. PEST Analysis Sig PEST analysis describes a framework of macro a environmental factors used inthe environmental scanning component of strategic management. P — Political factors E— Economic factors S —Socio-Cultural factors T— Technological factors It is a part of the external analysis, while conducting a strategic analysis or doing market research. It is useful strategic rool for understanding market growth or decline, business position, potential and direction for operations. SWOT Analysis The method of SWOT analysis is to take the information from an environmental analysis and separate it into internal issues (strengths and weakness) and external issues (opportunities and threats). Scanned by CamScanner Strength It is the characteristic of the business or give it an advantage over others. Weakness ; It is the characteristic that place the business or project at a disadvantage relative to others. project that Opportuni Ic isan element that the project could exploit to its advantage. Threats Ie is an element in the environment that could cause trouble for the business or project Specifically, SWOT is a basic, straighttorward model chat assesses what an organisation can and cannot do as well as its porential opportunities and threats. Tit-Bits )) 1 In the banking environment, staff is. the internal factor and consumer is the external factor. = Occupation is an element of demographic environment. = Labour policy is not a direct factor of the marketing environment. = Good competition helps in imporoved customer service. = Marketing opportunities marketing = Market space means scope available for selling. Market information means knowledge of related markets. mean scope for1 Which is the component of ‘marketing environment? (1) Legal environment nent al environment (2) Political enw {3) Social an eu (i) All ofthe above (5) Nove ofthe above sa 2. Nature of marketing environment includes 4 a8 per environment scion (3) challenges (4) wile market (5) All of these 3, Inthe banking environment, which among the following is the internal factor? 1) Customer (2) Stat (a) are Alter ese (5) Nowe ofthese ‘4. Consumer of a bank comes under which of the following environment? ironment ament nent G)AMof ¢ (5) None of the above 5. Which among the following is not a controllable factor of marketing environment? (1) Policy ofthe frm (2) Organisational structure (3) Indirect environment (4) All ofthe above (5) None of the above 6. Which of the following is not the part of macro environment? (1) Demographic (3) Cultural (5) None of these (2) Politicat (4) Suppliers 7. Which of the following represents the most important reason why firms monitor their demographic environment? (1) To explain historical trends (2) To predict political change (3) To predict the size of market segments 4) To predict business cycles (5) AM of the above ‘Scanned by CamScanner ich of the following is not a par 8. whit ns mic environment? (1) Customers (2) Sapir Compet | (8 Cererment legisaton (5) Alllof the above 9. Political environment of marketing includes foreign policy ; (1 publte weifare and socal justice (8) democracy {G) Allof the above (5) None of the above 110. Occupation is an element of (1) demographic environment (2) socio-cultural environment (3) economic environment, (4) All of the above (5) None of the above 11. Which of the following is marketing interme. diaries? (1) Wholesaler (3) Government, (5) None of these 12, In SWOT analysis, ‘S’ stands for (1) Strengths (2) Strategies (3) Smart card (4) All of these (5) None of these (2) Advertisement G) All of these 13. ‘PEST’ analysis related with a (1) micro environment (2) macro environne (3) Both ‘1’ and ‘2" (4) All of these (5) None of these 14. In PEST’ analysis, ‘P represents (1) Political (2) Place (3) Promotion All of th (5) None of these MUA stShes 15. Micro environment includes (1) market demand (2) consumer (3) competition (4) All of the above (5) None of the aboveo a yoursmahboob.wordpress.com Marketing Environment 16. Macro environment includes (1) demography 2) economy (3) techinology (4) All of these (5) None of these ‘17, Element of natural environment is (1) climate (2) ecology (3) natural resources (4) All of these (3) None of these 18. The marketing environment consists of (1) micro environment (2) macro environment (3) Both ‘¥" and *2" (4) internal environment (5) external environment 19. The elements of demographic environment is/are (1) population (2) age distributi (3) growth rate (4) literacy level (5) Allof the above 20. The part of political environment is/are (1) social organisation (2) religious organisation (3) media (4) form of government (5) All of the above 21. Which of the following constitutes the socio-cultural environment? (1) Traditions (2) Climatic conditions (3) Government (4) Geographic conditions (5) None of the above 22. Which of the following is the vital component of macro environment? (1) Social environment (2) Natural environment (3) Economic environment. (4) Religious environment (5) None of the above 23. Which of the following constitutes the natural environment? (1) Natural resources (2) Ecology (3) Climate (4) Geographical distribution (5) All of the above 13 24, Which of the following is tool for auditing an organisation and its environment? (1) SWOT analysis (2) PEST analysis | (4) Forecasting (4) Both "1" and *2 (5) None of these 25. Which of the following is an internal factor? (2) Threats Strengths To Caan (4) All of these (3) Opportunities (5) None of these 26. The PEST factors include (1) politieal factors (2) economic factors (3) socio-cultural factors (4) technological factors (5) All of the above 27. Which of the following is not a part of an organisation's micro environment? (1) Government legislation (2) Suppliers (3) Competitors (4) Customers (9) None of the above 28. Which of the following can be considered to be external to a company's internal environment? (1) Finance (2) Production (3) Accounting (4) Marketing intermediaries (5) None of the above 29. For many marketers, political forces can be (1) easily ignore (2) easily influenced (3) easily recognised (4) beyond any control (5) None of the above ‘30. Micro environment refers to the forces that are close to the ......... and affects its ability to serve its customers. (1) consumers (3) company (5) None of these 31. Which of the following is not a controllable factor of the marketing environment? (1) Firm’s policy (2) Government. factor (3) Marketing policy (4) All of the above (5) None of the above (2) marketers (4) environment ee Scanned by CamScannerwnt a of the following factor is not direct factor of | the marketing environment? (1) Labour policy (2) Selig. plies {3) Marketing poliey (4) Allof the above £5) None ofthe above 33. A method of comparing the interna! Capabilies of an organisation with the demands and challenges of its extern environment is Fferred to as (1) SHOT analysis (2) SWOT analysis (3) stakeholder analysis (4) share analysis (5) Both 3" and 4° 34, Which ofthe following isan element of an organisation's internal environment? (1) Competitors (2) Empolyees (3) Wholesalers . (G4) Retailers (5) Both 2" and ‘3? ‘35. The Letter T in PEST stands for (y) (2) Teckinologicat (3) Teacher (4) Table (5) Allof the above 36. SWOT analysis does not contain this (2) strength (2) weakness (3) oppor 4) talent (5) All of the above 37. Study of marketing means (808 PO 2010) (1) study of economic, political, cultural and technical environment (2) study of the company’s markets Potentials and competition (3) Study of current developing trends 4 study of employee's potential }) study of sales person’s potential ‘Scanned by CamScanner js is the analysis of | {808 weaknesses, occupation and) ‘weaknesses, opportunities 3a. SWOT analys 1) strenatbs, (3 Sree threats ses, occupation and t (a) salen weaknesses, occupation and threats (f) szengths, weaknesses, occupation and testy | {5) None of the above, Which of the following is least likely to associated with a firm's macro-environment? (4) Study of the changing birth rate | (2) Analysis of household savings ratios (3) A new staff incentive scheme (4) Cultural convergence 39. (5) None of the above 40. Situation analysis is useful for (1) SWOT analysis (2) analysis of sales person's performances IPNB Clerk 2019) (3) analysis of capital markets (4) All of the above (3) None of the above ‘41. Good competition helps in (1) better technology (2) more market share (3) rise in profits (4) bigger branch network (5) improved customer service 42, Marketing opportunities mean (1) rope for marketing (2) proper and effective training (3) market planning (4) availability of sales outlets (5) market data 43. Market space means (1) place where goods are sold (2) trade fairs and melas road shows 4) seope available for sellin, (5) competition * 44. Market information means [SBI Clerk 2013) [SBI Clerk 2013) [SBI Clerk 2012] (SB1 Clerk 201208 wy H knowledge level of DSAs “7 information about marketing staff (3) information regarding share market 4 faowledge of related markets (5) atest knowledge about technology progressMarketing Environment 45. The internal marketing environment includes (1) the human resource department (2) the operations departiment (3) the accounting and finance department (4) the researefi and development department. (5) Alllof the above 46. The objective of social marketing concept is m (J) the large market with active target audience : (2) realisation of maxinhum profits through lee (9) Sass tas nd ei i (4) Both ‘2° and ‘3° room © Analyse Yourself 1 (4) 2. (5) 3. (2) 4. (1) 5. (4) 11. (1) 12,1) 18. 4, (1) 15. (4) ty 21. (1) 22. (3) 23. (5) 24 (4) 25. (1) y 31. (2) 32. (1) 33. (2) 34 (2) 35. (2) 41. (5) 42. (1) 43. (4) 44, (4) 45. (5) Scanned by CamScanner 47, Marketing strategy means 6. 16. 26. 36. 46. |. Which of the followings are included in the 1) new ideas to true more customers $2) new methods to retain the customers (3) new ways to contact the (4) new marketing techniques (5) All of the above wy eustomers the — legal ‘business legislation of environment? (1) Corporate affairs (2) Employee protection (3) Consumer protection (4) Sectoral protection (5) All of the above 10. 20. 30. 40. a) (5) @ 4) @ 8 (4) @) oO) co) 6 (4) ® @ 12. 6) (4) 29. (4) 2@ 3. 3) 48. (5) @ 7 @ 17. 6) 27, (4) 37. (47. 28.. is concept in modern marketing. It is the st in lt Rela sora ac of mactag proces erie product in the marker. Ie in ids everything that a ftm uses to affect consumer’ perceptions vou | =e products or services, $0 that the consumer and organisation] | objectives can be achieved. lr dastcaon in tema “Marketingmix isthe | However, the 4Ps remain the most popular classi ms combination of for | marketing mix. In 1990, Robert F Lauterborn proposed a denenscalid 45 | lascfcation, which is a more consumer-oriented version of the Ps, (product, price, ‘promotion and place), da'cen sagen tor Elements of Marketing Mix ‘the option of adding, | The elements or components of marketing mix may be ‘grouped broadly und subtracting or madifying | the following four heads in order to create a | 1. Product 2. Price 3. Place 4, Promotion desired marketing strategy.” | Php Kotler Product Product refers to the goods and services offere {0 the consumer fora price. In other words, a product in bundle of utilities consisting of various features and accompanying services Product can be broadly clasified as follows Based on Use | Based on use, the product can be classified as cd by the organisation forse ‘Scanned by CamScanner (ii) Sper part ider buy effo 2. Indu Th pro son ma sup anc Base Based 0 1.Dur Du ak cap ma 2..Nor No nor use pic!Ne spoursmahboob.wordpress.com*** Marketing Mix Based on consumer's buying behaviour, the consumer goods can be further classified as () Convenience Goods Goods which are brought frequently without much planning or shopping effort and are also consumed quick, are called convenience goods. (ii) Shopping Goods These are the goods which are purchased less frequently and are used very slowly and choice for these products are made considering its suitability, price, style, quality and products of competitors and substitutes, if any like clothes, shoes, household appliances. (ci) Speciality Goods Speciality goods have particularly unique characteristic and brand 5 thee identification for which a significant group of Con,’ buyers are willing to put generally. special s a efforts to buy them. iat 2. Industrial Goods toy These goods are meant for use as inputs in production of other products or provision of "my some service and include raw materials, 2% machinery, components and operating supplies. These are meant for non-personal and commercial use. Based on Durability Based on durability, the products can be classified as 1. Durable Goods Durable goods are products which are used for a long period. Examples of such goods are s —_captial goods such as refrigerator, car, washing machine, etc. 2.Non-Durable Goods Non-durable goods are products that are normally consumed in one go or last for a few uses. Examples of such products are soap, salt, pickles, sauce, etc. Scanned by CamScanner 17 Based on Tangibility Based on tangibility, the product can be classified as 1. Tangible Goods Tangible goods have a physical form, that can be touched and seen e.g, groceries, cars, raw materials, machinery, etc. 2. Intangible Goods ; ; Intangible goods refer to services provided to the individual consumer or to the organisational buyers. Medical treatment, postal, banking and insurance services, after sales services, performance and goodwill of product. * Services These are intangible, inseparable. variable and perishable products that normally require more quality control. supplier creaibility, adaptability which satisfies wants and needs. Examples include haircuts, legal advice and appliance repairs, Price Icis the amount charged for a product or service. In other words, price is the consideration in terms of money paid by consumers for the bundle of benefits, he derives by using the product or service. It is the exchange value of goods and services in terms of money. Various factors that have to be kept in mind while fixing the price are demand for a product, cost involved, consumer's ability to pay, prices charged by competitors for similar products, government restrictions, etc. Price is the only element in the marketing mix of a firm that generates revenue. Rest of them generate only cost. Price and volume of sales together decide the revenue of any business.18 The various factors affecting the pricing polrces and decision ave |. Internal Factors Internal factors are categorised as . ( Organisation Factors ‘The marketing manager's role is to assist the top management in price determination and administer the pricing within policies laid down by cop management : ii) Marketing Mix Price is one of the importan Men he marketing mix and therefore must be coordinated with the other elements: product, promotion and distribution (iti) Product Differentiation The price of the product also. depends upon the various characteristics offered by the product. (ix) Cost of a Product Cost and price of a product are closely related. The most important factor is the cost of production. In deciding to market a product, a firm should also try to decide what prices are realistic, considering current demand and competition in the market. 2. External Factors External factors are categorised as ( Product Demand The market demand for a product or service hasa big impact on pricing, Since, demand is affected by the potential buyers, their capacity and willingness to pay, their preference, etcare taken into account while fixing the price, (+) Competition The prevailing information about what price the competitors are charging for similar products and what possibilities lay ahead for raising or lowering prices, also effect pricing (si) Behaviour and Nature of Buyers The nature and behaviour of the consumers and users, for the purchase ofa particular product or services ilo affect pricing, particularly ifcheie number large. (1) Government Rules regulatory pressures, am and Regulations The ti-price rise and control urage companies from, are of the market and measure effectively disco cometing too large a sh controlling prices Scanned by CamScanner Marketing Aptituc, e Ce and services ate produced 10 be sod the consumers. They must be made availabic to the consumers at a place where they can conveniently make purchase. Place is concerned wih various methods of eansporting ang storing goods and then making available for the customer. evita ing the right product, to the right place, at Feehan inte the dswibuton sce and the choice of distribution method depends on a variety of circumstances. Making the products available, it involves a chain of individuals and institutions like wurors, wholesalers and retailers who constitute company’s distribution network. Promotion Promotion is an important ingredient of marketing mix as it refers to a process of informing, persuading and influencing a consumer to make choice of the product of the company in question, Promotion is done through personal selling, advertising, publicity and sales promotion. It ig done mainly with a view to provide information to prospective consumers about the availability, characteristics and uses of a product. * 7Ps of Marketing In case of services, the producer-oriented model of marketing mix consist of 7Ps, Including the above 4Ps, there are additional 3PS and they are * People People refers to the employees of {he organisation who comesin contact with the customers in the process of marketing * Process Process refers to the systems and Processes followed within organisation * Physical Evidence It refers to all tangible. visible touch point that the customer will Encounter before they buy. elements ike Uniform of employees, signboards, ec wordpress.com =oly Sa Marketing Mix Factors Affecting Marketing Mix Factors affecting marketing mix are i, Uncontrollable Factors + Consumer's behaviour + Competitor's behaviour + Intermediaries behaviour + Government's behaviour 2, Controllable Factors + Product policy « Branding policy + Packaging policy + Pricing policy + Promotion policy + Distribution policy + Other factors 4Cs of Marketing 4Cs consumer-oriented model of marketing mix are as follows 1. Consumer In this model, the product is replaced by consumer. Marketers focuses ‘more on consumer satisfaction. Scanned by CamScanner 19 1. Here the cost refers 2. Cost Price is replaced by cost fs to the toral cost of owing a product. It in ost to use the product, cost to change the product ‘and cost of not choosing the competitor’ product. 3, Communication Promotion is replaced’ by communication. Communication _ includes advertising, public relation, personal selling and any method that can be used for proper, timely and accurate communication berween marketer and consumer. 4, Convenience Place is replaced by convenience. It focuses on ease of buying, convenience in reaching to the store/product and convenience in getting product information. Tit-Bits od = AIDS awareness campaign is an example of non-profit marketing = Planned cost service means extra profit on the same cost. = In case of price sensitive goods. the demand is not price sensitive at all = Product mix means various products designed by the company.1. Which of the following is the element of marketing mix? (1) Sel (2) Costing, (3) Creating (4) Product (5) All of these 2. Capital goods market deals with (1) non-durable goods (2) goor's (3) prodtets (4) durable goods (5) All of these 3. Convenience goods are those which (2) consumed easily (2) distributed easily, purchase frequently (4) All of these ¢ 6) me ofthese A. Service market is related with (1) tangible (2) iotangible (3) Both ‘1’ and ‘2 (4) All of these (5) Nome of these 5. Personal selling is a part of (1) promotion (2) place (9) pi G4) product (5) All of these 6. Which of the following is intangible features of a product? (1) After sale services (2) Performance of produet (3) Goodwill of product, (4) All of the above (5) None of the above 2. First of 4Ps is (2) product (8) price (3) place (Oyoraneton (3) Rone ott 8. Retailer is a sub-element of (2) place (2) product (3) pri 4) promotion (8) All ofthese 9. Distribution is also known as (1) product (2) place (3) promotion 4) All of these (5) Nowe of these 10. DSA of a bank isa sub-element of (1) price mix (2) 4 - (3) promotion mix {7 distribution mise (5) None of tha (4) All of these ‘Scanned by CamScanner Check Your Ski ills 11. Effective marketing helps in — © products 3) bnilding demand for p (Gj Allef the above {5) None of the above 112. Promotion in marketing means passing an examination a Soa oe (3) selling the products through various mean ({)seling the produet in specific areas, {5) None of the above 13, Which among the llesing can be an example of non-profit marketing? (1) Disney sting up a park in Hong Kong (2) Setting up an Ayurvedic massage centre (3) AIDS awareness campaign (4) Allof the above (5) None of the above 14, The correct 4Ps of marketing are (1) product, place, promotion, profit (2) prosuct, price, place, promotion (3) product, promotion, price, place (4) Allof the above (3) None of the above 15. Who among the following is not a part of the marketing mix? (1) Wholesalers (3) Customers (5) None of these 16. Which of the following is the crux of, marketing process? (1) Marketing planning (2) Marketing mix (3) Marketing research (4) Market expansion (5) Market scanning v Hes of the following comes under the “isions concerning the products? w Product attributes 2) Branding and packagi (8) Produet mig, "88 (4) All of the above (5) None of the above (2) Retailers (4) All of theseMarketing Mix 18. A product is referred to as P) tangible sul invton (2) angible item sth (4) All of the abe (3) Nowe of the above 19. A product represents a market's offering as itis preceived by (1) present customers (2) potential customers (3) company (4) All of the above (5) None of the above 20. Which of the following is/are tangible product? (1) Howse and TV (2) Car or scooter (3) Furuiture G4) All of these (5) None of these 21. Which of the following is consumable item? (4) Cold drink oF milk (2) Newspapers (3) Petrol (4) Gas (5) All of these 22. Which of the following is intangible service? (1) Entertainm: (2) Unsought product (3) Shopping produet (4) Speciality product (5) All of the above 23. ..... i8 a raw material for a sugar industry. (1) Machine (2) Pape (3) Coal (4) Sugarcane (5) None of these 24. The characteristics of product includes (2) price (4) All of these (1) product mix (3) packaging (5) None of these 28. ...,is bundle of utilities consisting of various features and accompanying services. (1) Planning aud development stage (2) Cost (3) Risk (4) Plan (5) Product: 26. Planned cost service means (1) costly products yoursmahboob.wordpress.com 2 27. In case of prestige goods, the demand is (1) price sensitive 2) not price sensitive {3) nt pre setive a level (4) All of the above (5) None of the above 28. If you are a marketing manager of a firm, you would prefer the customers who are (1) less price sensitive (2) more price sensit (3) depends upon the marketing mix (4) All of the above (3) None of the above 29. Which among the following is a component of customer satisfaction? (1) Fair price (2) Profitability (3) Brand (4) All of these (5) None of these 30. With pricing the products are priced below list price for a temporary period to create buying urgency. (1) reference (3) promotional (5) None of these 31. Promotion mix includes (1) direct marketing (2) sales team (3) advertisement (4) public relation (5) Alllof the above 32. Marketing mix can be changed due to (1) law and regulation of government (2) economic policies of respective country’s government (3) climate (4) All of the above (5) None of the above 33, Direct mail includes (1) letter heads (2) printed envelops (3) folder and catalogues (4) All of the above (5) None of the above 34. 4Ps of marketing means [SBI Clerk 2008) (1) primary marketing techniques (2) person, place, product and promotion (3) promoting authority (4) purpose, place, passion and product (5) None of the above (2) by-product (4) market penetration (2) extra profit un the same cost (3) extra work by selle (4) All of the above (5) None of the above ON pene a Scanned by CamScanner~ Ist Clerk 2008) 35. Product mix means i bundle of prosluet requited by: the customer anions product designed by the company ‘6, Non-product selling means (SBI Clerk 2009}, | welling, variety selling ony All of the abe ual prosducts 37 The best promotional tool in any marketing is 1) «promotion {881 PO 2010), pul inal suarketing 4) word of mouth publicity 3) aalvertisemv nt 38. One of the following is not included in the 4 Ps of marketing. Find the same. 881 PO 2010) uct duction None af these 39. Customisation is useful for {$81 PO 2011) 1) designing customer specific products all evntr public relation Note of the above © Analyse Yourself 1 24 328 422 54 " 205) 13, 15.) 2 25) 23, @) 28. 5) 3 32.4) 93, 5) 38. 6 “ 4200) 43 6 ~ ra Scanned by CamScanner 40. 41 42, 43, éursmahboob.word 3 —— Marketing Ap1;,.,, One ofthe following isnot included in they. of marketing. Find the same (S81 Fo 24) (1) product (2) pice (2) proxtuetion ) promotion (8) None of the above ‘The best promotional tool in any marketing is (1) pamphlets {S81 Clerk 2012 (2) newsletters (3) word of mouth publicity (5) siral marketing Who has proposed a four ‘cs’ classification of marketing mix? (1) Philip Kotler (2) RF Lauterborn (3) Albert Frey (4) William Lazer (5) None of these . A company’s product mix refers to certain (1) wlth (2) length (3) dep * 14) conmsisteney (5) All of these } The internal factors affecting the pricing decision is/are “ (1) cost of the product : (2) marketing objectiv (3) stage of the product in its lifecyele (5) All of the above o 7) 8m 2 @ 4 2 2 8) 48. 2) 20. a 2) 27. 3) 28. 11) ae. (1) 30, 6) 75) 38.3) 39. (1) 40, @. oo0.worapress.com “Consumer behaviour is the process whereby individuals decide whether, what, when, where, howand from whom'o purchase goods and services.”” Walter & Paul Consumer Behaviour Consumer ‘A consumer is an individual who buys products or services for personal use dnd not for manufacture or resale. A consumer may be a person or group of people such as a household who are the final users of products or services. Classification of . Nature of Indian Consumers Consumers Consumers are mainly classified into two + Tendency of bargaining, + More focus on price than its ups v0 alc sn Individual Consumer + Lack of awareness in the 2. Commercial Consumer consumer for brand or Individual consumer buys the products oe for, REA ; ; + Attraction for change and service for his own and his family or ee ee friends whereas commercial consumer ‘ike car’ scooter. coloured buys products or services. for television, refrigerator, manufacturing or reselling. washing machine, etc. Consumer Behaviour Consumer behaviour is a complex, dynamic, multidimensional process and all marketing decisions are based on the assumption about consumer behaviour. Consumer behaviour is the study of individuals, groups or organisation and the process they use to select, secure and dispose of products, services, experiences as well as ideas to satisfy needs and we find the overall impact of these processes on the consumer as well as on society. Scanned by CamScanner+ Decision-making in purchase process + Finding out the problems relating to purchase Factors Influencing Consumer Behaviour The factors influencing consumer behaviour are as follows Cultural + Traditions + Nationalities + Rel + Racial groups Social + Reference groups» Family + Social class + Caste Personal + Age + Life style + Personality + Life cycle stage + Occupation + Self concept + Economic circumstances Psychological + Motivation + Perception + Attitude + Learning + Beliefs Some Terms Related to Consumer Behaviour Negative Demand product and may negative demand, When consumers dislike a even pay to avoid it, i is called Impulse Buying A situation in which consumer Pruchases are unplanned, is called impulse buying, buying the product. Buyer resistance can be overcome by cordial elation between buyer ant | ‘Scanned by CamScanner of C behaviour, Characteristics tof human « Elements of Consumer Consumer Dena ee ial Behaviour consumer behaviour | + Want of consumer * Seal and physical act E + Alttude of consumer + Consumer behoviout S Ayr and avery individual while = | very 0105 Sonn he cons rales. nd habits. Consumer, RSs, robbie an6 hs Sons onsumer Behaviour » rit pshavour : vu is always regulated by the | ati ssuasive communication cller, good negotiation, persuasive sa ee eros orice Reference Group It means a group of satisfied customers, enol jet Group Ic means a group of people likely Dik the identified product. ious Stages in , Concumer Decision-Making ; Generally, a buyer passes through five distin stages, while raking a decision for purchasing a particular commodity. Need Recognition A consumer determines an order of preference for statisfying his needs Determination of such order of preference is the first stage of buying process. A marketer tries to convey the uses of his products to the consumers through his advertisement programmes, Information Search Determination of preference order sets the needs of a consumer in an order and the consumer starts to fulfil his needs one by one. He determined the need to be satisfied first ofall Then he tries to identify different alternatives to study his need. Fvaluation of Alternatives ‘The purpose ofthis Step is to evaluate the merits and demerits ofall the available alternatives. It helps the consunetin choosing the best possible ‘alternative, fer selecting the best alternative, the consumer Proceeds to buy ie. Purchase Decision After the evaluation ofall the alternatives, the consumers now decide on what a Nill purchase and where? These include the Product compared to how much mone]aerre the consumer can afford to spend, the opinions of family or friends and the sales and services of the marketer. Post Purchase Evaluation At this stage, the attempts are made to understand the extent t0 which the buyers feel themselves satisfied with their purchases. Such informatic marketer. Buying Motives There are different kinds of customers. So, their wants and needs are also different. They buy products or services to satisfy their needs. The causes and factors which stimulate consumer to buy certain goods or services, are called buying motives. is very useful for the Types of Buying Motives Buying motives are basically of nwo types 1. Product Buying Motives ‘These refer to those influences or factors which motivate a buyer to choose a particular product. They include the physical or psychological attraction of product, ie, design, shape, size, colour, package, etc. Product buying motives can be divided into two types (9 Emotional Product Buying Motives When a buyer decides to purchase a product without thinking logically and carefully, this is called emotional product buying motives. These include + Pride +» Affection + Comfort + Pleasure + Hunger and thirst» Habit « Individuality (é Rational Product Buying Motives When a buyer decides to purchase a product after thinking logically and carefully, this is called tational product buying motives. These include + Safety or security» Saving in cost + Utility or versatility « Durability * Suitability * Convenience 2. Patronage Buying Motives These refer to those considerations or reasons which motivate a buyer to purchase the product from a particular shop. Patronage buying motives can alo be divided into wo types . ; (9 Emotional Patronage Buying Motives (i Rational Patronage Buying Motives Importance of Consumer Behaviour ; The importance of the study of consumer behaviour may be explained as under Production Policies Consumer behaviour discovers the habits, tastes and preferences of consumers and such discovery enables an enterprise to plan and develop its products according to these specifications. Iris necessary for an enterprise to be in continuous touch with the changes in consumer behaviour so that necessary changes in products may be made. Price Policies ‘A businessman must study the behaviour of his consumers very well before fixing the price of his product because the consumer behaviour affects Price policies of the enterprise toa great extent. Distribution Policies Ie is necessary for the manufactures to assure regular and continuous supply of products in the market. Therefore, all the efforts should be made to distribute the products through channels of distribution most suited to the consumers so that availability of these products at right time and right place may be assured. Sales Promotion Policies The study of consumer behaviour helps the enterprise in knowing the buying motives of consumers. The decisions of the form, colour, packaging and labelling, etc of the products are directly affected by the motives for which the consumer buy the products, Sa ee | ‘Scanned by CamScanner26 i to «Six Questions Related Consumer Behaviour Wordpress.com i Marketing 4), J ‘fer from wants Because WANS BFE soc, Is differ from J 2 is the consumer? Needs needs «= who? Wo is + Ne mae yng “reo corimet—* nf of aay wo be atccate want to uy? + Setractualsation need iS Oe ee therm chase of 9 sine? nen, sees we” Starch consumer want to buy? of peace of rine sumer ofthe bank is fim, a Corporate bog + Where? Where does the Organisational consut ‘consumer want to buy? + How? How does the consumer want to buy? + Why? Why does the consumer want to buy? caste ‘custor Check L Which of the following statements best describes the concept of involvement in the context of buyer behaviour? (1) The length of time involved in the buying process (2) The potential impact of a product in an individual's self-identity (3) The number of people involved in the decision-making unit (4) The complexity-of an order (3) All of the above 2. A prospect means [SBI Clerk 2012, 08) (2) any customer who walks into the bank (2) an employee of the bank (3) a customer who is likely to be interested in bank's product or service (4) 4 depositor of the bank (5) a borrower of the bank 3. Needs differ from wants because (1) wants are socialised underlying needs (2) needs and historical future (3) needs and wants are (4) All of the above (5) None of the manifestation of | wants are about the exactly the same above Scanned by CamScanner sr serene SOL trust or school pein iene ie of sales persons. Your Skills 4. Buying decisions generally follow a pattem of ‘overlapping stages. Which of the following bes. describes the typical stages of the buying process? | (1) Need recognition > Information search » ‘aluation > Decision > Posty purchase evaluation | (2) Need recognition > Evaluation 5 | Information search > Decision > Pos purchase evaluation (3) Information search Evaluation evaluation (4) All of the above (5) None of the above 5. Target group means (1) all employees (2) short-listed group (3) all the marketing staff (4) sales representatives (9) group of people likel product 8. Which of the followin; (1) Aetive per (2) Personal consumer (3) Risk taker (4) All of the above (5) None of the > Need recognition Decision > Post purchase | [SBI Clerk 2012, 11, 09) | ly to buy the identifie! 8 is the type of consumer? ‘Tsonal consumer above ayoursmahboob.wordpress.com Consumer Behaviour 7. Which of the following is not associated with a on role in a buying decision-making unit? (1) Supplier (2) Gatekeeper (3) Decision-maker (4) Buyer (5) None of these B. Which of the following is buying motives? by, (2) Rest and recreation : (2) Sociability and striving Ba, (3) Pride (4) All ofthe above (5) None of the above Which is psychological buying motives? (1) Sleeping (2) Hunger (3) Thirst (4) Rest and recreation (5) All of these 10. {In India, who plays a vital role in buying decision? (1) Man with their friends (2) Man with their boss (3) Staff (4) Woman (5) None of the above 11. Which of the following is the feature of buying” behaviour of Indian consumer? (2) Changing consumption pattern (2) Trademark consciousness (3) Bargaining (4) All of the above (5) None of the aboye i 12. The personal consumer of a bank is (1) Mr Shyam (2) a firm (3) a corporate body (4) 4 person who is a servant of bank (5) None of the above 13, The target group for tractor loans is {SBI Clerk 2012] (1) cold storage plant (2) farmers with large land holding (3) farm labourers (4) agriculture colleges (5) vegetable vendors 14. Which of the following is the nature of consumer behaviour? (1) Its psychological activity (2) It is a physical activity (3) Itis buying process decision (4) All of the above (5) None of the above A Scanned by CamScanner a 15. The target grouip for home loans is (2) individuals [SBI Clerk 2009), (2) salaried persons (3) businessmen (4) professionals (5) All of these 16. Organisational consumer of the bank is, (1) a firm (2) « corporate body (3) an industry or trust or school (4) All of the above é (5) None of the above 12, The target group fora car loan iss, 4 942) 1) all bigh income individuals i‘ all car dealers (3) all students (4) all PPL persons (5) bliral persons 18. Customer's relationship with the bank is influenced by {SBI Clerk 2009] (1) customers attittides (2) attitudes of bank staff (3) interest rates of the bank (4) attitude of sales, persons (5) Al of the above’ 19. The social factor of the bank customer includes (1) social class and caste class (2) motivation, (3) beliefs (4) attitude (9) Alllof the above 20. Reference group includes» (1) market sector (2) satisfied customer (3) producer+ (4) research and development's techniques (5) All of the above 21. A situation in which consumer purchases are ‘unplanned is called. [SBI Clerk 2012] (2) latent demand.” (2) impulse buying (3) ircegular demand (4) unwhole some laying, (5) None of these . 22. Which is the type of fainily as per purchase” decision-maker? (1) Wife-dominated family (2) Husband-dominated family (3) Syncretic family (4) Autonomic family (5) All of the above 23. Which of thé following is the esteem needs? (1) Water (2) Protection (3) Food (4) Reco’nition (5) None of these} 28 { 24, Aconsamer's buying behaviour sintuened which of the following Factors? 3) Personal factor (4) Paychologi (5) Allof these 25. Social factors affecting “the consumer's buying behaviour includes (2) reference groups (2) family (3) social class (4) caste (5) All of these 26. The cultural factors of consumer behaviour consist of (1) teaditions (2) wationalities (3) religions (4) racial groups (5) All of these 22, The personal factors of consumer befiaviour include (1) age (2) life style (3) personality (5) All of these 28. Which one of the following best describes the term ‘negative demand’? {SBI Clerk 2012] (2) Consumers begin to buy a product less frequently (2) Consumers do not at all buy a product (3) Consumers are unaware cruninterested in a product a Seogimer purchases vary on a seasonal (5) Cousumers dislike a product and may even pay to avoid it 29. The psychological factors of consumer behaviour include (1) perception (2) attitude (3) learning (4) beliefs (5) All of these ‘30. Which of the following is the safety needs? (1) Protection (2) Food (3) Water (4) Shelter (5) None of these © Analyse Yourself 1. (1) 2. (3) 3) 40) 5g i 8 zB 1) 13.) 14.44) 45, a 28 (8) 23.14) 24.15) 25. 6) . 92.15) 93.5) 34.(4) 35, ) 00: wordpress. com Marketing A) ance means BA. Buyer Fesia aE Cerk 2012, 09; PNB Clerk 254, the prosduet nd the seller maying the proxdey OF exchange wie ofthe ch of 32, wmeumer DUNE P (1) Problem secu 3) taformation sete (2 tem araeinee (2) Purchase asl post DUE . (Al of the above 492: tnvehichof the following way a customer uss disposes of products? (1) By acting id of temporarily (2) By getting rid of it permanently (5) By keeping it (4) By storing it (5) All of the above 34. In the simple response model of consumer behaviour, the entities involved in it is/are (2) exganism (4) All of these following is/are stage/stages i, yrocess? (1) stimulus (3) response (5) None of these 35. In the model of buying behaviour the marketing stimuli include (1) product ( (3) place é (5) All of th 36. Consumer analysis deals with (1) knowledge level of sales person. (2) knowledge level of employees (3) nature of the buying decision (4) corporate objectives (5) Both ‘1’ andl ‘2° 37. Buyer resistance can be overcome by 2) price 4) promotion [SBI Clerk 2012; PNB PO 2010) _ (1) cordial relation between buyer and seller @ good negotiation 3) persuasive communication (4) good ater salen service (9) All of the above 2a 72 84) 9.2 1044) os ail 18. (4) 19.(1) 20. (2) ‘ 7. (3) 28. (5) ) 36. (3) 37. (5) ae B eee Scanned by CamScanneryoursmahboob.wordpress.com Market segmentation is the process of dividing market into dastinct sub-groups of consumers with distinct needs, characteristics or behaviour,” Philip Kotler Market Segmentation ‘The market for any product is normally made up of several segments. A market segment consists of a group of customers who share a similar set of needs and wants. 7 Market segmentation is a marketing strategy when the marketer divided a broad target market into subsets of consumers who have common needs and priorities and then designing and implementing strategies to target them. Objectives of Market Segmentation + To identify the needs, tastes, priorities, buying-motives of the target consumers. + To make grouping of customers on the basis of their homorenesus characteristics such as nature, habit, behaviour, income, age, educston, + To make the activities of the firm consumer-oriented. + To determine marketing strategies, targets and goals of the firm. « To identify the arcas where the customers may be created and market area can be expanded. Importance of Market Segmentation There are the following importance of market segmentation 1, Understand Customers To sell to your customers, you first must understand why they would want to buy your product. Marker segmentation allows for the development of profiles of the many different kinds of customer groups who buy your products. Italso can be used to develop products for your target audience. 2. Maximize Product Potential During the course of your market segmentation, you may come across an alternate use for your product that had not been previously discussed. You may discover a new market for your product. Scanned by CamScannerKk 3. Improve Distribution Networ! . By studying the buying tharos e eee customer groups, you can determine the way Gustcmers” pre to buy your product. M: ie segmentation also helps you to identify geograp! areas where your products are popular. 4. Gain New Clients - A comprehensive market segmentation analysis includes reasons why consumers are not buying your products. By understanding the reason, you can alter your marketing or change your product development to try to gain new customers. Characteristics of Market Segmentation + The market segments must be measurable so that they can be identified, + Ir must be reachable through communication and distribution channels, +It should be sufficiently large to justify the resources required to target them. + It must respond differently to the different marketing mixes. + It should be relatively stable to minimise the cost of frequent charges. * Requirement for Successful Market Segmentation There are four criteria which must be met for successful market segmentation, By segmenting your market. you should be able to consider’ your Customers buying behavior and specific traits 1. Substantiaity Your targeted segment needs to be Suficientin ie to justify creating and sustaining a Customized marketing mix, 2 Identifiability and Measurability You must be able ‘o identify and measure the specific segment 3 Accessibility You must have access to your targeted segment with yourspecifie marketing mix. 4 Responsiveness You should consider how your ament shall respond to your proposed l Your customers respond 0 and what wil they disregard as unimportant? ‘Scanned by CamScanner Causes of Market Segmentation Market segmentation is necessary due tp ‘allowing reasons Profit as ; ; Saeaiias a market will g : - a ranisation to sell same pro Gifferent set of customers based on tha income. Organisations disposable income. | Organisation gnlpance their profits by raising their p for different segments. 2, Popularity in the Market ‘Through careful segmentation and prop targeting, smaller businesses are able compete with stronger and leading ones the marker. 3, Better Customer Satisfaction By creating separate solutions for exe segment a better satisfaction to customers can be achieved. 4, Better Opportunity for Product Sales Growth Market segmentation can build gle margin. consumer may be encouraged sell a product. 5. Very Easier Customer-Business Communication Flow Manufacturers of products need advertise and deliver their message to relevant customer audience. And wher there is a broad target market, the ky customers will be missed and even thea of communicating to customers will b © high. But if the market has be segmented, the target customers can casily reached more often and at alo cost. ( a GMarket Segmentation Basis of Market » Segmentation Market segmentation can be classified on the basis aa of rw0 groups Prog, 1. Consumer Market ‘ed ae Segmentation of consumer market are tion, “S_(i) Geographic Segmentation hein = Climatic zone» Region iy State + District + Urban/Rural area ana (ii) Demographic Segmentation naan + Age + Sex aby «+ Family size += Religion Bong, + Community « Language + Occupation + Income + Educational level» Social status n " fi + Generation To 8 ii) Peychological Segmentation & + Personality traits» Atticudes + Lifestyle + Value Ket (iv) Behavioural Segmentation + Brand loyalty Id e+ Consumer starus : first time, potential, "aged regular, etc. + Readiness to purchase + Usage rate 5 + Occasions stimulating product purchase e: (#) Segmentation by Benefits et. + Quality “te * Performance wis Image eet Service ily * Special features be ai bot Re Scanned by CamScanner 31 2. Industrial Market + Location + Type of business «+ Form of consumer + Method of purchase Merits of Market Segmentation + Increase the focus of a firm + Increase in competitiveness + Increase in brand loyalty + Market expansion + Customer retention « Increases profitability + Have better communication Demerits of Market Segmentation + Segments are 100 small + Consumers are misinterpreted + Costing is not taken into consideration + Increased costs to develop variations of the product + Higher stock holding costs Tit-Bits CJ) +» Prospective customer means a potential customer, Prospects for a bank may be a student. manager of other bank, administrator of government department. = Target customer means new customer. * Product positioning is the process by which marketers try to create an image of the product and to create an identity of the product. * Re-positioning of product involves changing identity of the product. = De-positioning involves changing the identity of competing products. * Customisation results in customer retention.=yoursmah “Wordpress.com 2. Marker segmentation 1s te alt neice 2. Sub marker is known as went on market se 3. The basis for consumer market segmentation, includ All of the alone 4. Which is a benefit of market segment mado In mes tin the competition effectively 4) All of the: above None of the abore 5. Who is prospective customer? Awets Stat Potential customer 4 Present eutoier aul tuanages All uf (he above 6. The benefits of market segmentation includes ‘0 sareh attractive marketing options to determine the product imix Wo select the target market 4/ All of the above Nowe of the: al 7. Target customer means 21 profit cents 1 WW and present custom and staff All of the abuve Scanned by CamScanner i Check Your Skills ‘se M v 8. The objective of market segment, * includes (1 10 find out the new markets 3 10. 1. 22, 13. Who may be prospects for a bank? make real customers to the prospec, ‘customers of the company (4) to make customer-oriented to marketing tivities of the firm 4) All of the above (5) None of the above a or of other bank istrator of government departmen, (4) AlLof the above 5) Nowe of the above ‘Occupation involves U1) administrator (2) trader muntant (4) All of the above (5) None of the above (4) chartered Life style of a customer includes 1) social status (2) cultural value of customer (3) perception of customer (4) motivation (5) All of the above Behavioural basis of market segmentation includes 1) loyalty or brand loyalty 2) attitude (3) buying occasions (4) All of the above (5) None of the above Which are the factors relating to target market? (1) Goals of the firm *) nage of the firm i) Company resources (4) Product chatacteristies and product vatiel (5) All of the aboveyoursmahboob. wordpress. com 3 3 Market Segmentation ve tive criteria for an effective market 14. Whe Boat ims ot mychographic 22. Tie mation can be grouped as Vite it mbavievant ! jy socnede Ail ut the alane testa Soe ofthe alone 1 Aik the abe : 4S. Which of the following is the basis for 23. Which of the following is the first element o segmenting the market? a marketing strategy Tarek market (2) Prosiaet 2) Proxnetion J None of these are the two elements of yy that determine the The market place. 24, The... and the ~. a marketing mix strategy Success of a product in t 16. Which of the following constitutes geographic segmentation? 1 target matket, prio shes 1) Climatic sone () Region Ue iatket, waanket ing mie vari * 4) State 14) Alb of te 6) None of thene 17. Which of the following comes under ” demographic factors? 25. Product positioning is the process by which 1) Age (2) Sex marketers try (1) Bannily size 4) Religion reate an image of the product 5) All of Sete an ieentity of the product, 18. Which of the following elements comes io Nae eae under the psychographic segmentation? *) ioneae ti bove 1) Personality traits. (2) Attitudes ¥) Life style 4) Value system 26. Re-positioning of product involves (5) All of these (1) placing the product in slaps , 2) uaking the products available to the 19. The consumer market can be segmented on enue f thet basisiot 4) changing identity of the product ed teeiee } developing the mew product 9) ex ran 5) Nowe of the above (5) All of these 27. De positioning involves 20. Which of the following is behaviouralistic variable? (1) cresting an image of product a Changing the price of product Ntusauia 4) chauging the identity of competing (2) User statu products 4) developing the new product 4) Readiness to buy 3) None of the above (4) Buying oecasions (5) All of the above 21. 8. fi ffecting the marker 28: Market. segmentation provides a focused Le approach to winning the game by answering segmentation include thatiecues (1) which groups of users should we serve 1) clear identification of the segment (2) measurability of its eflective size (3) its accessibility (4) its appropriateness (5) All of the (2) with whem will we compete (9) how can we ontperform: them (4) All of the above (5) None of the above Scanned by CamScannerjon is useful for 29, Market segmentation is useful for gy prefervatial marketing ting existing clients nuifving, prospects (4 koowcing customers tastes (3) All of 4 is require }0. Market segmentation is requi ee ing cold calls [S81 PO 2009), (2) to inerease production (3) for territory allocation (4) for focused marketing (5) for increasing profits ‘31, Market segmentation helps in [PNB PO 2009] (1) identifying the target group (2 focwsed marketing (4) improved lead generation (4) Both “1° and -2" (3) Al ofthe above 32. One of the following is a target group for the ‘marketing of Internet banking [SBI Clerk 2009] (1) all the eustomers (2) all the educated customers (4/ all the computer educated customers (4) only creditors (3) AML of the above ‘33. The target group for credit cards is 1881 Clerk 2009] howe (1) all card holders (2) all existing borrowers (3) individuals with taxable income (4) All of the above (5) None of the above 94. Marketing segmentation involves 1808 Po 2010) (1) dividing the salesman into homogeneous group (2) dividing the employees into talent groups (2) dividing the products (4) measuring the service level (5) None of the above 95. Market segmentation can be resorted to by way of 1808 PO 2010) (1) segimenting geographically (2) segmenting by income (3) seguuenting by age (4) Bot “Vand 9 (5) AlLof the above Scanned by CamScanner (1) target existing clients {2) identifying prospects \ semen (3) preferential marketing ae {4 mternal marketing a (5) All ofthe above oe et segmentation means jy | (3 = ay sagueataion of sales team "4 4s, Mat (2) distribution of territory | (3) sales network G4) division of market according to, | s requirement “ (5) market share | a5 38, Target market of education loan jg | 46.1 (1) all school students (2) all colle stg i (3) all colleges G4) all schools ¢ (9) all hospitals 1581 Po | ( 39. Target group means (881 Clea ( (2) all buyers (2) all salespersons | (3) prospective buyers (4) all customers (5) delivery persons 40. Which one of the following is not a inl © group for savings bank account? (SBI Clerk amg 4 (2) Salaried person “ (2) Loss incurring companies \ a (3) Doctors 31 (4) Government servants a (5) Insurance agent 41. Target market for housing loans will be | a) existing clients (2) persons who do not own a house 42. The target group for Personal loans is [SBI Clerk 2011) (1) all private limited companies (2) all businessmen (3) all salaried persong (4) minor childten (2) newborn infants 43. The target Soup for tractor (1) cold storage plants (2) farmers with large lanl hole (3) farm labourers (4) agriculture colleges (5) vegetable vendors loans is [SBI Clerk 2012) ingWhy, , Inj, Market Segmentation 44. The target group for a car loa (1) al high income individuals (SB1 Clerk 2012] (2)all car dealers (a) all students {4/all BPL persons (se, 5 (5) bind persons 4, 4S. Market segmentation means grouping (1) the sales teams (2) the customers as per their needs and tastes (3) selling arrangements (4) the counter staff (5) the back-office staft is 46. The target group for SME (Small and to ty Be sty Medium Enterprise) loans is {S81 Clerk 2012] aly My (1) all $Sls (Small Scale Industries) ‘Br (2) all college professors a Pam, (3) all students Stk oy (4) all nurses “tons (5) all salaried persons nets “atm, @ Analyse Yourself lek 4. 2) 8) U4) 8) 1.6) 12 @) 126) 14 @) 15. 6) 21. (6) 22. (8) 23. (1) 24. (2) 25. (3) 31. (5) 92. 3) 93. 3) 34. 5) 95. (5) 41. (2) 42.) 43. (3) 44. (1) 45. 2) be k 201 se 20m) oa) Scanned by CamScanner on the 47, The segmentation of market based gender‘of the customer is a type of (1) geographic segmentation [SBI Clerk 2012) (2) demograph ntation (5) poychographic segmentation (4) life style segment. (5) price segmentation 48. Customisation results in (1) customer exist (2) customer retentio (5) customer complaints (4) better balance sheet Figures (5) better technologs ‘49. Market segmentation can be resorted to by dividing the target group as per (1) income levels of customers [SBI Clerk 2013), (2) age of the employees (3) needs of the sales persons (4) marketing skills of the employees (5) size of the organisation [SBI Clerk 2012} 64) 74) 8 4) 9 4) 10. (4) 16. (4) 17. (5) 18 (5) 19. (5) 20. 6) 26. (3) 27. (3) 28. (4) 29. (5) 30. (5) 36. (3) 37. 2) 38 (2) 39. (3) 40. (2) 46. (1) 47. 2) 48. (2) 49. (1)#8” _ yoursmahboob-wordpress.com ~ Marke Conce Mana There a concepts Marketing Management, and Planning a par: i Mar! 5 discipline which focuses on ihe Afar eement 1S a business focus \ Marketing management is 2 Peer Cniques and the MANAgeMEN fy, practical application of TT Crivities. Marketing management empl, aq marketing resources Bt and competitive Strategy (0 analyse ch from economics vrod hich the firm operates. vee fire s tools ft industry, context in wl “Marketing 7 i janagement, basi minapenrat sth ~—- Characteristics of Marketing Me 9 rou «Marketing management is consumer orient mar inplemcetation sud . Marketing management isa specialised branch of general managemen « econsiders consumer satisfaction as a marketing activity. Cor desened tm axed on the principle of socio-economic satisfaction. het exchanges sth tage + tela emphasis on beneficial results of ale instead of quantity ofl, | For audiences for the + It lays emphasis on integrated marketing. a purpose of personal Jon ‘and mutual gain Objectives of Marketing Management: cus Philip Kotler «To determine the marketing objectives for which all the functions" be performed. a « Forecasting sales for future, preparation of marketing, programrs formulation of marketing policies and strategies regarding produc; ete. | (i + Organisation, for the purpose of marketing management, means determination of organisational structure of marketing departmes: | + Helps in taking decisions regarding prices of the porduct. c + Helps in the production activities of an organisation. Ik I P h meen — Scanned by CamScanneryoursmahboob.wordpress.com Marketing Management and Planning Concepts of Marketing Manogement sin sof the marketing Consumer Oriented Concept Quentabon to consumer needs is the main aiget for the snecess of marketing activites More customers know what they need. This the main wasow that while deciding trial ines present itself as the production targets in ind business, consumer’ d 4 paramount Marketing Oriented Concept the Marketing orientation bas thee common of 5 sliernatives such as sales orientation, on product orientation and — production he orientation which can be adopted by a company. With marketing orientation, a business revolves its strategic decisions around the wants and needs of the target market, including potential customers. nt Consumer Satisfaction Concept According to this concept, the position of onsumer is the foremost position in all the isiness activities, Busine an achieve the ng-term prosperity by. satisiying its customers which induce the customers to repurchase (i) Consumer hing of the market 143) Consumer's position is at the top. wv) Consumer is a boss. Consumer Welfare Concept escems to be the best marketing concept It focw on ce umer needs and wants, profits and abe ‘cial welfare. This helps ini he image of the ‘Scanned by CamScanner a a EY i 37 Importance of Marketing Management. In Indian economy, the significance of the marketing management could be described in the following way (/) Procuring Maximum Results with Minimum Efforts In our country, the resources are quite ed. By the minimum efforts, we have to achieve the maximum results, It could be possible only when we understand the significance of marketing. (i) Importance for Consumers Consumer can select the product in an effective manner if he is properly aware about the concept of marketing. (in) Increase in Living Standards Organisation provides new products to the society which helps to increase their living standards through marketing. For this, different ways of better living can be discussed on the basis of advertisements and sales promotion, (iv) Economic Growth Through marketing management, economic growth can be achieved because when there is less marketing and usage of the product by the consumer, there idle stock of manufactured goods and raw-meterial accumulated with the manufacturers will be Functions of Marketing Manager = To work with the top management, + To supervise and coordinate various activities of his department To maintain the existing markets and to discover the new markets for the products. To evaluate the product from time to time so that necessary modifications and alterations may be made in the product. To study the needs of the market from time to time so that new product may be introduced in the market to attract more consumers, + To select specific channels of distribution according to the needs and requirements of the enterprise. + To prepare marketing programme. + To keep himself in touch with the economical and political environment so that he may take the necessary decisions.' 8 Difference between Marketing Management and Soles Management Basis Marketing Sales Management Management _ Xesponsible It's responsible tis the reason fora person that the person gong toa buys a product particular store. _ rom that store. Part Ikisnotthe pat Sales of sales management is a management. part of marketing management Purpose its main purpose Its main purpose Pose is toincrease eis 10 sale the prosperity of product business: _ Relation It works as ant works under independent the concept of ‘concept marketing . management Scope hasawide Ii has a ined scope. scope. Marketing Planning ‘Marketing planning is the process whereby companies reconcile their objectives and ‘opportunities. “Marketing planning is the work of setting up objectives for marketing activity and of q determining and scheduling the steps necessary fo achieve such objectives.” —The American Marketing Association Elements of Marke: Planning + Determination of objectives + Forecasting the future + Policies Procedures + Programmes Schedule + Rules Strategies + Budget VU Scanned by CamScanner * yoursmahboob.wordpr. a Marketing Aptitude Objectives of Marketing Planning The objects of marketing planning in an enterprise can be ccribed as follows - “4 ee marketing plans on the basis of sales forecasting. : « To minimise facure uncertainties as for as possible. Jo co-ordinate the activities not only of its own dyarooate but it helps in co-ordinating the getivities of all the departments of the enterprise. ae helps in controlling the activities of all the lepartments of the enterprise. «rei a diffrence Berean the problems of ky nature and that of routine nature. ; alt helps in checking all che wastages in the enterprise «Ic is helpfull in maintaining healthy competition within enterprise. + Helpful in increasing the efficiency of employees. Importance of Marketing Planning + It prepares planned strategies and programmes for the future so that furure uncertainties may be minimised and the objectives of the enterprise may successfully be achieved. + The objectives of the enterprise are clarified by marketing planning and clearly explained to all the concerned employees of the enterprise. «le helps in co-ordinating all the managerial activities of the enterprise. + Tr increases the organisational effeciency by making decision-making process quick and by defining individual duties, rights and liabilities of all the employees of the enterprise + Iechecks all unnecessary expenses and hence leads ‘9 economy in the operations of enterprise. + leis helpful in controlling functions * lcstresses upon the achievement of pre-determined objectives of the enterprise through maximum satisfaction to the consumers,ble. ial ng og he ds agement and Planning Process of Marketing Planning Process ofmarketing planning includes the following eps Step 1 Goal Setting « Mission « Corporate objectives Step 2 Analysing the Current Situation + Marketing audit « SWOT analysis + Marketing assumptions Step 3. Creating the Marketing Strategy + Marketing objectives and strategies + Forecasts of expected results + Create alternative plans Step 4 Allocating Marketing Resources and Monitoring + Marketing budget + Derailed action plan Market strategies means methods to improve marketing activities. Good marketing strategy envisages good and proper relationship, management Classification of Marketing Planning Marketing planning activities can be divided into three parts 1. Long-Term Planning Te means planning for a period of more than one year. It involves the devlopment of basic objectives and the fundamental policies to guide future effores of an enterprise. Generally, this type of planning relates to the planning of a new product, product diversification, expansion of product line, etc. 2. Short-Term Planning Icis the planning of marketing activities for a period of less than one year. This type of ‘smahboob. wordpress, determination of planning is the liability of medium level of management. The problems ¢o:be dealt by this planning are—adjustment in the prices of products to face the competition, adjustment in the quantitry of production to ‘meet the changes in demand. 3, Adhoc Planning Itis the planning of activities to be performed in the future. Adhoc planning is not a regular and systematic form of planning and itis the solution to the problems arising in the actual performance of marketing activities. Target consumers remains at the centre of any marketing process. Factors Affecting the Marketing Planning A large number of factors affect the marketing, planning. These factors are as follows Internal Factors Internal factors are those factors that arise in the enterprise itself. These factors include the following + Size of the company. + Risk bearing capacity of the enterprise. + Financial resources of the enterprise. + Organisational structure of the enterprise. + Technical knowledge available with the enterprise. + Channel of distribution. National Factors These factors include the following + Population of the country and its regional distribution. + National income of the country. + Distribution of national income. + Sectoral distribution of national income. = Price trends in the country. + Industrial policy of the country. = Trade policy. ‘Scanned by CamScanner4 International Factors These factors include the following + International monetary system. ational stability and peace. + Scientific and technical developments in the world. Tasks Performed in Marketing Planning The major tasks performed in marketing planning are Environmental Appraisal + Analysing the environment and spotting the opportunities and threats. + Analysing the market and customer. + Analysing industry and competition. Internal Appraisal of the Unit + Analysing the strengths and weakness of the unit. + Analysing the health and status of the different products. + Analysing the competitive advantages and core competencies of the firm. Fixing the Marketing Objectives of the Unit * Assessing the current performance ofthe unitin the key areas. + Establishing measurable, clear-cut and explicit goals in each key area. + Shortlisting the areas in which marketing objectives have to be set, Developing the Marketing Strategy + Selecting the target market. * Deciding the positioning strategy. + Developing the marketing mix. Developing the Functional Plans of Marketing * Product plan and production plan formulation, * Sales forecasting, + Channel planning. * Sales promotion planning, * Advertising planning, ‘Scanned by CamScanner Marketing Aptitude yoursmahboob.wordpress.com 0 Sales Forecasting Forecasting is the art of estimating future demand by anticipating what buyers are likely to do under a given set of future conditions. Sales forecasting provides the backbone to marketing “The company forecast is the expected level of company sales based on a chosen marketing plan and assumed sting environment”. marketing —Philip Kotler Factors of Sales Forecast ‘Sales forecasts can be based on three factors 1. What customers have done in the past in the market? 2. What customers are actually doing in the market? 3. What customers say about their intentions to continue buying products in the industry? Types of Sales Forecasting There are two major types of forecasting 1. Macro Forecasting Iris concemed with forecasting the market trends in totality. This is about determining the existing level of overall demand and forecasting what will happen to the demand in the future. 2; Micro Forecasting It is concerned with detailed unit sales forecasts. This is about determining a product's market share in a particular industry and considering what will happen to that market share in the future.% at et 2 x + Process of Sales Forecasting 1 Setting goals for forecasting 2 Gathering data 3 Analysis of data 4 Choosing the best method 5 Forecasting 6. Evaluation of forecasting ‘outcomes Tit-Bits CJ) oursmahboob.wordpress.com Marketing Management and Planning a Functions of Sales Forecasting - 1. Sales forecasting forms the backbone of marketing. 2. It provides numbers regarding the sales. 3.It provides vital clues regarding customer's. tastes. Preferences and needs 4. It helps the firm to handle its marketing planning and marketing strategy formulation. 5 It helps the firm to develop its budgets and attain its marketing objectives, = Market share means percentage share of business of the ‘company as compared to peers. * Afall in the market share implies competition has increased ‘+ Market share can be increased by increasing the sales * The potential market is the set of consumers who are buying the company’s products. It is based on future trading * A’benchmark’ means a standard value set for comparison between the competitors Check Your Skills 1 A marketing plan does not have to be (1) simple (3) complex (5) Both ‘3! and “4 (2) clear 2.A marketing plan is the collection of specific (1) products (2) markets (3) stafls (4) actions (5) None of these 3. The marketing planning process includes (1) goal setting (2) analysing the current situation (3) creating the marketing strategy (4) allocating marketing resow monitoring (5) All of the above 4. Goal setting includes (1) mission (2) corporate objectives (3) Both 1" and * (4) marketing audit (5) None of the above Scanned by CamScanner (4) lengthy 5. Which of the following remains at the centre of any marketing process? (1) Target consume (3) Price (5) None of these 6. One of the key goals of the implementatior function in marketing management is to (1) carry out the set plans (2) take corrective measures (3) construct sales budget (4) introduce a new product (5) None of the above (2) Product (4) Promotion 7, Factors affecting the marketing planning include (1) internal factor (2) national factor (3) international factor (4) All of these (5) None of these and 8. The internal factors affecting marketing ple include (1) size of company (2) financial resources of company (3) channels of distril (4) Alll of the above (5) None of the aboveyoursmahboob.wordpress.com 42 9. Analysing the current situation includes mathe tin anit SWOT analy mathoting assump All of the: ale 1 Nowe ot the abuse 20. Which of the following is/are the importance of marketing planning? 1) To 4 Helpful in control All of thw above 12. Which of the following is/are the element of marketing planning? 1) Budget Schutt {these 12. “Planning is deciding in the present what to do in the future”, who said this? 1) Philip Kotler ) Bartle (I KL Keller 4) All of these 13. The international factors affecting the marketing plan include 1) International Monetary System International Stability and Peace 1) Technical Development in the World / Scientific Development in the World All of the above 14. The elements of marketing planning include policies ures of the above 15. Creating the marketing strategy includes marketing objectives aud strategies forecasts expected results All None of the above alteruative plans the abo 16. The process of allocating marketing resources and monitoring include 1) marketing budget detailed ation plan 4) Both Vand 4) marketing audit 3) SWOT analysis Scanned by CamScanner Marketing Apu, 17. Which of the following is/are the feature oy, marketing plan? (1) Generate: a aniq ‘nine the optimal selling proposition keting, budge, "1 investment (4) Mlontify SWOT (3) All of the above 18. The national factors affecting marketing play include (1) popalation of cota (3) trade policy 4) Al of the above (6) None of the above 19. Marketing plans are used for (1) doi ‘keting students (2) planning departie (3) purchase of consumable items from retail ontlets (4) All of the above (3) None of the 4 researeh by ts 20. Which of the following is the element of marketing plan? (1) Marketing programme (2) Completion sehedule (3) Statement of goals (4) All of the above (5) None of the above 21. Marketing planning is concerned with | 1) the identification of resources that ate | ailable and their allocation to meet specified objectives | sell (3) financing | (5) All of these 22. Market potential is based on | (1) future trading (4) managing (~/ production and market planning 3) award (4) profit (9) All of the above 23. Marketing plan helps in (1) better lead generat (2) bette (3) better results (4) improve balance sheet (5) better customer service [SBI Clerk 2008]de ofa 24, For effective marketing, the salesmen should have which of these qualities? 2) Team spirit on \ Hilective communication skills All of the: above 25. Which among the following feature of good an forecasting mode? {S81 Clerk 2008] 1) Accuracy (2) Simplicity 2) Eeonomy (4) Availability 5) All of these 26. Market plan is a selling, ped Leb 2) calendar [SBI Clerk 2009], 4) business document for tnntke (3) AML of the above u 27, Market plan is [S81 Clerk 2009] 1) an action plan for day-to-day marheti (2) elective selling steps 1) effective Inying, steps (4) & comprehensive docum keting (5) All of cw 28. Market information means [PNB PO 2010; ‘SBI Clerk 2008] 1) knowledge level of marketing staif information about marketing, staff (4) information regarding share market ) knowledge of related markets 7) All of the above 29. A marketing plan is necessary for {S81 PO 2011] 1) having a focussed approach to marketing 2) to decide marketing strategies to decide product strategy {/ to decide advertising strategy All of 30. Marketing strategies mean [SBI Clerk 2012, 11] 1) ideas for new employment 2) technique for n wens 1) wethods to improve marketing activities (4) more hits per ATM. 3) networking, Scanned by CamScanner 32. 33. 35. 36 37. 38. yoursmahboob.wordpress.com Marketing Management and Planning Aa . Good marketing strategy envisages good and proper [881 Clerk 2012), (1) product distribu (2) networking of br (ahi (4) placen (5) relat int of counter staff onship an ‘The first step of marketing is (1) production work (2) planning work (3) receiving feedback (4) telephone calls uz E-mails Sales forecasting means 1) to sale product 2) to storage product (4) the quantity of sales that to be sold in future (4) All of the above (3) Nove |. The type of forecasting is selected on the basis (2) availability of data #) time horizon (4) product positioning (5) All of the Sales forecast can be based on which of the following information? (1) What customers say about the product, 2) What customers are actually doing (3) What customers have done in the past (4) All of the above (5) Nor of the above The types of sales forecasting include (1) miero forecasting — (2) macro forecasting (3) Both 1 and. (4) minor forecasting (3) major forecasting The ....... market is the set of consumers with sufficient level of interest in a market offer. (1) potential (2) target (3) penetrated (4) available (5) None of these Which of the following provides the backbor to marketing? (1) Sales forecasting (2) Pr (3) Market targeting fit forecasting (4) Market segmentation (5) None of the above44 39. Micro forecasting determines 1 prantuets market sha ‘market share arket shure price of the above: 40. Macro forecasting is concemed with forecasting markets in 1) fragmentation (2) segmentation (4) pa 41. The analytical and statistical method of sales forecasting include (1 extrapolation method rage methoa () moving. (3) ime series analysis (4) regression analysis (5) All of the 42. Sales forecasting involves 1 Clerk 2008), 1) sales pricing ch (4) All of the above 5) None of the abo 43. Sales forecasting involves study of 1) proper selling, price [SBI PO 2009] (2) sales planning ion outlets 1) distrib 5) All of the ris and demands above Analyse Yourself © ) 24 36 49) . 14) 1201) 13.6) 44, is 18. i 2 ’ 22(1) 23.13) 24. (5) 25. 5) a 32.2) 93.3) 34.5) 35, (4) 4214) 48.65) 48.14) 45, 5) Scanned by CamScanner yoursmahboob.wordpress.com Marketing Aptiuq, ‘Benchmark’ means (J) sales performance me (2) marks given to (3) appraisal (4) standard values for (3) . Market share means (1) share capital of the eor (2) staff strength of the company (3) employees stock optic 1) share price quoted int the market (5) percentage share of company as compared to peers 1581 Clerk 2649) f (SBI Clerk 2012, 19) pany business of the 46. Market share can be increased by increasing {SBI Clerk 2012, 1), (1) raw material cost (2) the staif strength (3) the sales (4) the sales staff (5) competition 47. Market size also means {$81 Clerk 2012, 19) (Z) market planning — (2) market pricing (3) market space (4) market distribution (5) market channel 48. A fall in the market share implies (1) sales have gone up {SBI Clerk 2017] (2) profit has gone up (3) prives are eratic (4) competition has increased (3) business is wound up 6) 74) Bg (4) 9. (4) 10. (5) 16. (3) 17. (5) 18. (4) 1 a f 9. (5) 20. (4) 8. (4) 27.4) 2B. (5) 5 be 5) 29.15) 30.3) (3) 37. (1) 38. (1) 39. (1 (1) 38. (1) 40.8) 46.3) 47.14) ag ca10) he u " “The product life cycle isan attempt to recognise distinct stages in the sales history of the product.” Philip Kotler yoursmanvdood.wordpress.com ‘ Product Life Cujcle (PLO) Product A product may be defined as a bundle of utilities consisting of various features and accompanying services. The bundle of utilities or the physical and psychological satisfactions that the buyer receives is provided by the seller when he sells a particular combination of product features and associated services. Importance of Product + Product is the central point of all kinds of marketing activites. + Any marketing activity is not possible without any product. * Sales, advertisement, sales promotion, etc depend only on pre + Price of a product, its distribution and policies related to it, are based on it. + Product planning and its development affects the life of a product. + Many persons get employment due to the product. *+ Decisions related to any product are the main causes of the prosperity or failure of any business. Classification of Product Products or goods can be classified into two broad categories depending upon the use for which they are meant. These categories are 1. Consumer Goods Consumer goods can be clasfied as follows (9 Convenient Goods ¢g., cold drinks, cigarattes, magazines and newspapers, etc. (i Shopping Goods e.g, furniture items, dress materials, shoes, etc. (iii) Speciality Goods eg., fancy goods, stamps, coins, etc. ne _ a = ————— Scanned by CamScanner —. ~yoursma 00: . wordpress.com 46 Industrial Goods Indwserial goods can be clasified as follows \) Fabricating Goods «¢.. pig iron going into steel, yarn being woven into cloth, etc (0) Equipment Goods ¢g., portable drills, hand tools, et (is) Supplies Goods ¢.g., floor wax, pins, pens, etc. lectncal goods such as TVs. veo, stereo systems. ete used for home entertsinment are Krwn 2 brown goods. The goods which are used for their production. are called capital goods Difference between Consumer Goods and Industrial Goods Basis Consumer Goods Industrial Goods Consumers of Its consumers are the jature of Consumer: citdmers consumer goods are manufacturing and the uttmate industrial units. Market The market of such The market of such extension goods is very large goods is nat so large and extensive. and extensive Number of Number of customers Number of customers customers or consumer goods is for industrial goods is very large ‘generally limited, Nature of The demand ot The demand of demand consumer goods is industrial goods is called autonomous called derived demand, demand or direct or indirect demand demand Marketing Advertsing The personal contact, strategy programme and sales with buyers play an Promotion methods important role in the play an important role sale of such goods. in the sale of such ‘goods Quantity of General. consumer General, industial Purchase o0ds are purchased goods are purchaced "a small quantiy. in buk quantity Qualities of a Product + Brand name + Mass or weight * Trade mark name — + Kind * Fictitious or real «Brice + Durability _ eee Scanned by CamScanner Marketing Aptitug, Product Life Cycle (PLC) ‘The Product Life Cycle (PLC) is the life Span, of a product from the stage of developmen, through. testing, promotion, growth ang marketing, to the stage of decline and pethap, regeneration. Characteristics of Product Life Cycle 1. The life cycle of each product begins wi its introduction in the market and pass through the phases. of mark development, maturity, becomes leada and ultimately declines. 2. The speed of movement through varioy stages of life cycle, cannot be same for kind of goods. 3. Profits in the business enterprise, groy quickly in che introduction stage an decline/decrease in the maturity stage dy to competitive conditions. However, thea is overall increase in sale during ty maturity stage. 4,.With the decrease in profits in maturity stage, changes such as researd and development, production pattem marketing and financial control activitia etc become essential. Stages in Product Life Cycle The product life cycle comprises of five staga + Market introduction + Market growth + Market maturity | * Marker saturation * Market decline | Stage 1 Market Introduction In this saf some innovative products mayb launched. Innovation me Product designing, new ideas # creativity. This stage of the cycle could be Most expensive for a company’ cost of things like research # Ssdevelopment, consumer testing and the marketing needed to launch the oduct can be very high, especially ’ if i is a competitive sector stage? Market Growth ‘This pically charsctetised by a strong growth in sales company can st economies of seale the overall profit increas Pa slightly, depending on demand increases, will Price stabilises or falls margins how fast ‘The category of consumers in the a growth stage of produc is somewher more price sensitive, mote ik svenne hy and. therefor, somenhan ee . hesitant to adopt the product, 6 Stage} Market Maturity. Sales continue to rape grow during the early. part, of ap, maturity, but at a much'slower rave veg than experienced during the growth ting | phase. At some point, sales reach at the peak. This peak may last for : extended periods of time. In fact, the ; maturity phase of the life cycle is the = longest phase for most products. Be Stage 4 Market Saturation In ths stage, the amout of product provided ina market has been maximised in k the current state of market place and selling price has been constant. At * the point of saturation, further growth can only be achieved through product improvements, market share gains or a rise in overall consumer demand, Stage 5 Market Decline This is the last $ stage of Produce Life Cycle (PLC). ' Ac this stage, there isa down turn in ' the market. Profit margins touch a ' low level, competition becomes severe and customers start using newer and better products. Militias ee ‘Scanned by CamScanner Importance of Product: Life Cycle Following are the importance of product life cycle Life of a Product is Limited According to this concept, the product will die out over a period of time irrespective of the fact that the product had made tremendous progress during the post. Knowing this fact, management always try to improve its existing product or to develop a new product. Estimation of Profits The quantum and rate of profits increases or decreases with the quantum of turn over. In introductory stage, profits are negligible, then they g0 up and after sometime they begin to fall and gradually they move to nil ‘Thus, the management can well predict the firm's profits in different stages of the life cycle of the product. Marketing Programme Different policies, procedures and. strategies are followed in the different stages of the life cycle of a product. So, ment can prepare the marketing programmes accordingly and may get success, Importance of Product Life Cycle also includes (i) Help in prometional decision. i) Help in product control (ii) Facititates sales forecasting Factors Affecting Product Life Cycle + Development of substitute products. + Product regulatory system. + Rate of technical change and market acceptance. + Competitive entry. + Legal law and government protection, + Goodwill of the organisation. + Patent, copyright and trademark, *+ Quality of raw material and product. + Material mix ratio.i ,0ursmahboob. wordpress.com > wy 48 it les : Style, Fashion and Fad Life Cyc * We need to aistingush thee special atone" of product fe cytes: styles fashions and Ts style is a basic and distinctive m secon. appearing in a field of human endeavour. Styles appear in hommes, clothing and ait Astyle can lst for generations | + Afashionis currently accepted or popular $y in a given field. Fashion pass through (A stages. Its always based on some style Distinctiveness, emulation, mass fashion ar Decline. . + Fads are fashions that come quickly in publ View, are adopted with great zeal. peak early and decline very fast Product Related Policy Decision Decisions taken by the producers on the given three aspects 1, Product Item A detailed description of a product in a list of a producer or seller is called product item, 2. Procut Line It means group of product, which are closely related co each other ¢g., Lakme, Maybline, etc. In product line decision, the marketer has to make decision regarding the product line length which means the number of product in the product line. 3. Product Mix It means the complete set of product line produced and bold by the company. eg., Nestle produces milk powder, maggie, ghee, etc. Product Development Steps The new-product planning involves a series o steps From idea generation 1 conmeniatianay f? ‘Step 1 Idea Generation It is a continuous, Scanned systematic search for co new product opportunities. It involves dell, es _delineating by CamScanner Step 2 ‘Step 3 Step 4 Step 5 Step 6 Step 7 Marketing Apu, , Pi sources of new ideas and method, generating them ing After the §, juct Screening 7 eer potential products, it nt wren them. In product screen, unsuitable of — othery or. Pateractive ideas are weeded t from futher actions. ing A firm needs Concept Testing Sar consumer feedback abou ¢ oduct ideas. Concept teiy cole eet Proposed product and messy artitudes and intentions at this ey stage of development. Business Analysis Business analyg for the remaining product concep much more detailed than prody screening. These are some of 4 factors considered in this stage g planning-demand projections, cy projecitons, competition, etc. Product Development It convers, product idea into a physical form aj identifies a basic marketing strategy} involves product —_constructia packaging branding, etc. | Test Marketing It involves placing product for sole in one or mq selected areas and observing its ac Performance under the propod marketing plan. Commercialisation After tex is completed, the firm is ready! introduce the product to its full wf market. commercialisation invlt impleting a total marketing plan a full production,aA My product Life Cycle yoursmahboob.wordpress.com 49 4h, 1 4, iy "sq, ‘ = the act of making out and supervising the search, screening fee b ‘cuisben of new products, the medication of existing lines and the i of marginal oF unprofitable items , puckoong Includes guarantee and condition fo the product. branding, labelling and Ne , 1 4 Reasons behn kat Ao pers BeNed product innovation are competition and market change. market strategy and isk an ‘ ee ox “PPrOACH Can be best described as immediately dropping the product from the * = Price strategies become - Price strategies become more mixed during the maturity stage of the PLC. Cth One. "Poy. Characteristics of introduction stage of PLC is or) J) lower dernannd Sup, united customer ty (low growth rate in demand t 4) All of the above (3) None of Ue abave "2, The goods which are used for their production ‘orm, are calle [SBI Clerk 2008) able gous tna #) derived goods (5) capital goods 3. The importance of product life cycle includes vaca 1) belp in promotional decision xe help in product cont sa 4) facilitates sales forecastiny np 4) All of the above None of the above * 4. In introduction stage of ‘PLC’, 1) advertisement is required ) sales promotion is required a research and development is required 4) Both “Vand °2 6. Which of the following is not the product line policy? (1) Contraction of product mix (2) Development of new uses for existing iets (3) Alteration of existing products 4) Costing uf thw above Scanned by CamScanner 7 Check Your Skills S. ‘PLC’ stands for (1) Preatuct Life Cy (8) Prodict Long C (3) Nowe of these 7. Which of the following is the birth stage of product life cycle? (1) Researeh and develo (2) Prontuct Jopn (2) Mntro e (2) Product Life Cost (4) Price Long Cost of priee stage ion sta (4) Production (5) AML of the above 8. In the case of such goods where consumer normally compares price, quality delivery, etc are called [SBI Clerk 2008] (2) speciality goods (4) derived demand (1) shopping goods (4) staple goods (5) luxury goods, 9. Product planning means (1) the act of making out and supervising the search, screening, development and conmmercialisati 1 of new products (2) innovation of company (3) pricing, (4) selling (5) marketing, 10. A fashion is always based on (1) product of service pricing method 2) sane style (3) cost (4) brand (5) sales : —————Aiton Risk Son 13. \Whichhamong the following isn nds? convenience goo Toth paste © span of 14, Which of the following is the life span tet pani hat cee Som of this _" life cycle isan cording to whom, “The product life cyel hastory of the product”? Are Paton Philip Kotler Stat Bustle New af these 16. The product life cycle includes “Nn 7 A 17. Which of the following is the feature of ‘introduction stage of product life cycle? pweth stage 4) decline stage Low High production east Low profit Few competitors All of these 18. The stages of the product life cycle in chronological order is Yon, growth, maturity s maturity. ¢ Srowth, maturity, stagnation, stagnation decline 19. Which of the following is Stage of prc oduct life cycle? he feature of growth Reduced cost 1) All Of these Scanned by CamScanner 00b. wordpress.com 1s the reason for prod not an example of [81 Clerk 2008) Marketing «following Ue aleming fa, jge of the product lite ev a dine OF All of the above (3) None of the above bes " following is the feature , ge ot he product life cycle? he act ns low Which of 2a cline stage of 1) A down 1uFP ere competition bove ) All of the al None of the above 22. What are the two ways by which a compay, can obtain new products 1) Now product development and nequisii 2) Market_mix modification and reses, aud «evelopment (3) Internal development and merger development — and 4) Service Produ (5) Line extension and brand managenens 23. Which of the following is not a stage jg product life cycle? 1) Tnrod 3) Grow (3) None of these 24. In which of the followin; product life cycle, sale’s down? (2) Peak G4) Maturity iB stages of tix growth starts to slow 1) Maturity stage (2) Growth stage 4) Decline stag (4) Introdue (5) None of these 25. During which Stage of ney Ww produ development does” the firm coneidt Profitability? (1) Bus siness analysis Product development ) idea generation 4) Testing (3) None of the above 26. Electrical goods g uch as TVs, videos, stere? Systems, etc used * for home entertainment at [SBI Clerk 2013 (2) green goods (4) blue goods (1) white goods (3) red goods () brown goods pr 2 2t 3product Life Cycle 27, Which of the following is, are the development of major steps in ew product? cn 14) Servening marks n, 28. Aphase out approach can be best des lecline of product scribed as tumediately dropping the product fron he production nt of new product 3) None of the above 29. Pri stop developn e strategies become stage of the PLC, more mixed during the (2) es ; introduction G4) dec 5) None of these 30. The decline stage of PLC can also be termed as 1) peak stage cut-off stage N (2) saturation stage (4) break fen stage we of these 31 Which of the following growth strategies focuses on developing new products for a company's existing markets? 1) Product diversification *) Product de 1) Market pe Market segn 4 entation 5) None of the above 32. Increasing profits will most likely occur at which stage of the PLC? J) Introduction rowth ) Product development (4/ Decline 5) Maturity 33. In which of the following stages of PLC, there is little or no competition in the market? (2) Growth (4) Decline 1) Introduction 3) Maturity 5) None of these Analyse Yourself © Analy: + (4) 6) 3. (4) 4 (4) 5 MW. (5) 12, (4) 13, (5) 14. (2) 15. 21. 4) 22, (4). (2) 24. (1) 25. 32) 32,2) 33. 1) 34. 2) 98 Scanned by CamScanner (1) (2) a) (4) oursmahboob.wordpress.com 51 34. In which of the following stages of PLC, sales volume is at the peak? (1) Introduction stage (2) Maturity stage (4) Growth stage (4) Decline stage (5) Peak stage 35. Product deletion may be defined as (a jiate termination of the product (2) happening only with convenience items (3) happening only with costly items G4) sometimes may be opposed by the management (5) None of the above 36. In which of the following stages of PLC, costs, become high and detrimental? (2) Growth (4) Decline (1) Introduction (3) Maturity (5) None of these What are the major reasons for sales decline in the final stage of product life cycle? (1) Technological ad (2) Shifts in consumer tastes: (3) Increased domestic and foreign competition (4) Both “Vand °2 (5) All of the above Which stage in the product life cycle normally lasts longer than other stages? (1) Maturity (2) Decline (3) Introduction (4) Phase in (5) Growth 37, 38. 33, In which of the following stages of product life cycle, costs are very high? (1) Introduction (2) Growth (3) Maturity (4) Dect (5) None of these What are the two by which a company can obtain new products? (1) New produet development and acquisition (2) Market mix modification and research and development (3) Internal development and merger (4) Service development and product extension (5) Line extension and brand management 40. 6 4) 72 81) 9 (1) 10 2 16. (5) 17. (5) 18. (2) 19. (4) 20. 3 26. (5) 27. (5) 28. (2) 29. (1) 30. (2) 36. (4) 37. (5) 38. (1) 39. (1) 40. (1)“A distribution channel consists ofthe set of people and firms incolved in the transfer to tile to @ Product as the product moves from producer to ultimate consumer or dusiness user.” William J. Stanton Distribution + goods directly to the final users, betweey Mos proc es performing aiey oF funtion The them stands ast of ern marketing channel. So, marketing channels are ei li organisations (intermediaries) involved in the Process fo ee ne er connampaon'ty consumer or business user. | A channel of distribution is the path a product takes from the producer oy manufacturer to the final user. Importance of Distribution Channels | + Distribution channel reduces the cost of any transaction by routinisation of purchasing decisions. | They act as communication agent which often guide the consumers in right direction to fulfill their wants. * A distribution channel is important for understanding the logistics of the business. ~ Ichelps in managing, planning, producement, transporting and storage of products. + They help to reduce the stroage cost. ; Functions of Distribution Channel | The main functions of distribution channel are 1. Contact between P; roducer and Consume: Through distribution chann ene Consumer, which is useful to ‘egarding product and behaviour of the consumer. | Mii | ‘Scanned by CamScanner