B.Com.

III Year
Paper XVI-B
[Correspondencel
-

Marketing Management-2020
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Duration:2 Hours
Paper Code:C119
Maximum Marks: 75
Attempt any four Questions.
o.1. Market is the sum total of all the
potential and actual buyers of a
product. Define with the help of an example.
Ans. Market: In the traditional sense, the term 'market refers to
the place
where buyers and sellers gather to enter into transactions
involving the only. The
of goods. In day-to-day language, the term market is used in this sense exchange
term market can be used in the following contexts also:
() Product Market e,g. bullion market, cotton market, jute market, share
market etc. TeleGram: @sol_helpdesk

(ii) Geographic Market eg. local market, national market, international

market etc.
(i) Type of Buyers eg. consumer market and industrial market.
io) Quality of Goods Transactedeg. retail market and wholesale market.
But in modern marketing sense, the term market refers to the sum total of all
the potential and actual buyers of a product. When we talk abut the market for a
particular product, we see all the possible targeted audience. We design a product
keeping in mind the targeted audience. The tárgeted audience can either be
potential buyers or actual buyers.
Potential buyers are those buyers who are likely to buy the product in the
future. Actual buyers are the already established customers who are using the
product. Market is generally seen as the sum of both, because every potential
buyer will become an actual buyer once he has the power to purchase that item.
Hence, targeted audience should include both the potential buyers as well as
actual buyers.
Example: When a fashion desigmer designs a new dress and offers it for
exchange, all the persons who are willing to buy and offer some value for it can be
stated to be the market for the dress so designed. Similarly, market for bulbs, pens
or jeans refers to all the potential and actual buyers for these products.
When Maruti 800 was launched, it was being purchased by rich people only.
They were the actual buyers. There were persons who wanted to purchase the car
but could not buy it due to lack of power to purchase. They were potential buyers.
With the increase in their income, they also started purchasing Maruti 800 and
potential buyers became actual buyers.
Thus, the market consists of both potential buyers as well as actual buyers.
Q. 2. Marketer is a person who takes more active part in the exchange
mechanism. Generaly, it is perceived that a seller is the marketer but it is not

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(201)
 SATISH: B.Com. Iil Year

necessarily true, as sometimes the buyer makes more effort in the

he exchange
Process. What do you think?
ns. Marketer : Marketer refers to the person who takes more active part in
e exchange mechanism. Exchange mechanism refers to the exchange of goods
cServices for money or for something of value to them. Exchange refers to the
POcess through which two or more parties come together to get the desired
prOduct or service from someone, offering the same by giving something in
. o r example, a person who wants to buy a pen would go to the stationery
Op and pay the price to tor the
get the pen. Pen has been exchanged price
Normally, it is the marketer who is more active in the exchange process. He
analyses the needs of the potential buyers, develops a market offering and
Persuades the buyers to buy his product. So, the general perception is that the
seller is the marketer. But it is not
necessarily true.
Sometimes, the buyer makes more effort in the exchange process. This is true
n case of rare supply. In such a case, the buyer way be taking extra efforts in

persuading the seller to sell the product to him.

Examples: In case of a situation, where a country has installed a nuclear plant
and needs the supply of nuclear fuel, it has to promise the supplier of the nuclear
fuel that the nuclear fuel would be used
only for peaceful purposes. In this case,
the buyer makes more effort in the
exchange process.
Q. 3. Production concept, Product concept, selling concept, Marketing
concept societal concept are part of marketing management? Explain with
suitable examples. TeleGram: @sol_helpdesk
Ans. Marketing Management: To achieve desired exchange outcomes with
the target markets, it is importance for the organisation to decide what marketing
management philosophy (or thinking or concept on orientation) should guide its
marketing efforts. It is important to understand the marketing management
philosophy to be adopted by the organisation since it determines the weightage to
be given to different factors in order to achieve
organisational objectives. For
example, the organisation has to decide whether it would focus on the product,
say designing its features etc. or on selling techniques or on needs of the
customers or on social concerns.
The
production concepts, the product concept, the selling concept, the
marketing concept and the societal concept are all part of marketing management.
Philosophies of Marketing:
(1) The Production Concept: Consumers prefer products that are widely
available and cheaper. Therefore, managers of production-oriented
organisations
aim at achieving high production efficiency, low costs and mass distribution. This
concept makes sense in developing countries. For example, low priced Chinese
products.
(2) The Product Concept: Consumers prefer those products which offer the
best quality, performance, or the ones having innovative features. Managers of
product-oriented organisations tocus on making superior products and keep
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 XVI-B- Marketing
Management-2020 (Corresporndence)
roving over
hem impr time, assuming
Correspondence) 203
that consumers
erformance. For example, Casio calculators appraise quality an
and
()The Selling Concept: Consumers and businesses, of their
own, ordinarily
do not enough of the organisation's products. The organisation
buy
has to resort
to an aggressive selling
and promotion effort to sell what it
makes rather than
ake
mak what the market wants. For example, Insurance schemes, Schemes of
Mutual Funds.

(4) The Marketing Concept: The

key
to achieving
organisational goals
aonsists of the organisation being more ettective than its competitors in creating,
delivering and communicating customer value to its chosen target markets. The
marketing concept rests on the following four pillars:
() Target Market: Companies do their best in choosing their
target
market(s) and prepare tailored marketing programmes
i) Customers' Needs:A company, even after defining its target market may
fail to correctly understand the customers' needs. Clearly, understanding
Customers' needs and wants is an important task.
(i) Integrated Marketing : When all the departments of the organisation
work together to serve the customers' interests, the result is integrated
marketing8 TeleGram: @sol_helpdesk
(iv) Profitability: The main objective of any business unit is to earn profit. In
the case ot not-tor-profit and public organisations, the aim is not to earn
profit but survival and attracting enough funds to be able to continue
performing useful work.
5. Societal Marketing Concept: This concept holds that the organisation's
task is to determine the needs, wants, and interests of target markets and satisfy
them more effectively and efficiently than its competitors in such a way that it
preserves or enhances the consumers' and the society's well-being. For example,
manufacturing of eco-friendly and energy saving products.
Q.4.It is important from the perspective of marketerto gather information
from the market. SWOT analysis should be done properly. This will help in
understanding the target market. Whaf do you think?
Ans. Yes, it is important from the perspective of marketer to gather
information from the market and for this purpose, SWOT analysis should be done
properly.
SWOT Analysis-The term SWOT stands for strengths, weaknesses,
opportunities and threats.
(9 Strengths: These refer to all the good aspects of the firm. Examples are
exceptional customer goodwill and brand loyalty, adequate financial resources,
aynamic managers, enthusiastic sales forçe, etc.
(i) Weaknesses These represent retreading influences on the success of the
organisation. Examples are obsolescence of machinery, inadequate research and
development activities, etc. The managemernt must take the steps to remove them.
Gin Opportunities: Opportunities may come about by wayofa fortune or by
undertaking some research. Opportunities are usually external. They should be
ecognised and grasped firmly when they arise. For example, there may be a new
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204
SATISH: B.Com. II Year
market (or new
products andew customers)
Customers)
services. which must be tapped by supplying the
required
quired
(iv) Threats: They are
the often from outside. Their advert
most
organisation
Conflicts, lack
may be mainly due to weak management, repercussion
inter-depa
sions on
on
of financial resources
and so on. Some examples of threats artmental
Cnanging technology, competition from transnationals, and
are
economic
Pocal uncertainty. Besides, there may be some internal tnreats also suchand
inadequate financial resources. as

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SWOT ANALYSIS

Strengths Opportunities
Latest technology
Expanding markets
Large financial resources International customers
Competent human resources Government orders
Weaknesses Threats
Obsolete technology Increased competition
Poor financial position Availability of cheaper substitutes
Difficulties in marketingg Risks ininternational markets
The SWOT approach
requires management to look very dlosely and
analytically every aspect its operations so that objectives can be assessed as
at of
attainable and a clear picture is built up of the strategies to be adopted to achieve
them. Every strategy must also be examined with due care so that the
under which operations have to be conducted are constraints
recognised
Constraints may be both internal as well as external. Internal
constraints
include lack of specialised personnel,
poor quality control, poor industrial
relations and so on. Examples of some external constraints are rise in
Government legislation, economic policies etc.
price level,
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Q.5. Storage of products in an orderly manner at a place is a very important

function of marketing. It maintains a balance between supply and demand.
This function saves time, effort and money of the consumers. What do
you
think?
Ans. Storage or warehousing means holding and preservation of goods till
they are dispatched to the buyers. Generally, there is a time gap between the
production of goods and their consumption or use. There is need for storing the
goods to make them available to the buyers as and when required. By bridging
the gap between production and consumption, storage creates time utility. Some
amount of goods has to be stored at every step in the marketing process.
Adequate facilities for the storage of goods are a pre-condition for succest
marketing. Sufficient space, proper location and construction of warehouses and
of efficient
adequate protection against heat, cold, fire, theft, etc. are the essentials
storage
Warehousing: A warehouse is a place which is used for the storage or
 PAPERXVI-B- Marketing Management-2020 (Correspondence)
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tion of goods. We may also define a warehouse as an
cumulatic

accumucenonsibility for the safe custody of goods. establishment that

assu
Warehousing
marketing activity for mass production and mass distribution of ess6ential
is an

eeping surplus goods in warehouses during the period of slack dema

goods. By
nisation can realise remunerative prices for the goods. Warehousing enables
the organisation to carry on production throughout the year and to sell whenever
there is good demand. Various functions of warehouses are as follows:
()Regular Production: Raw materials need to be stored to enable mass
nroduction to be carried on continuous basis. Sometimes, goods are stored in
anticipation of a rise in prices. Warehouses enable the organisation to produce
in anticipation of demand in future.
goods
(#i) Time Utility: A warehouse creates time utility by bridging the time gap
between the production of goods and its consumption. It helps in making
the customers. Some
available the goods whenever required or demanded by
are demanded only during a
are produced throughout the year but they
goods etc. On the other hand, some
particular season, e.g., raincoats, umbrellas, heaters, are in a particular
products are demanded throughout the year andthey produced
but
season, e.8, wheat, rice etc. Goods
like rice, jaggery become more valuable
with the passage of time. TeleGram: @sol_helpdesk

acts as a store of surplus

(ti) Store of Surplus Goods: Basically, a warehouse in
are often produced
goods which are not required immediately. Goods
have to be stored until they are demanded
anticipation of demand and hence they stored in a
are not needed immediately can be
by the customers. Goods which
warehouse to meet the future demand.
violent fluctuations in prices. By
(io) Price Stabilisation: Warehouses reduce them
more than demand and by releasing
storing goods when their supply is
when their supply is less than demand,
warehouses
ernsure a regular supply of
with demand helps in stabilising
goods in the market. This matching of supply
the prices.
()Minimisation of Risk: Warehouses provide for the safe custody of goods.
in the
Perishable products can be preserved in cold storages. By keeping goods
minimise the loss from damage, fire, theft, etc.
warehouses, the organisation can
warehouse are generally insured. If there is loss or
since the goods kept in the
can get full compensation from the
damage to the goods, the organisation
insurance company.
Certain products have to be conditioned or
(vi) Packing and Grading:
human use, e.g., coffee, tobacco, etc. A warehouse
processed to make them fit for
provides facilities for processing packing grading etc. of the goods for the
who want to buy the g0ods can inspect the goods
purpose of sale. The persons
kept in a warehouse.
(oi) Financing: Warehousing provides a receipt to the owner of the goods
for the goods kept in the warehouse. The owner can borrow money against the
security of the goods by making endorsement on the warehouse receipt.

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 206
SATISH: B.Com. III Year
Q.6. XYZ manufacturing
customers to start successful company has decided to identify the needseofof the
the
this marketing of the garments produced by it andnd for
for
e Company is doing SwOT
analysis (Strength, Weakness,
and Threat
Analysis). The company is pursuing its objectives withOPportunity
It has decided full efforts.
to make a
blueprint for the amount of production it will do, the
ertorts behind promotion it will put and all other major actions actions itit will
undertake to achieve its objectives. However, the company has one weak
which it would like to area
improve. The physical movement for its
prepared
gaments was not
proper last year and the company wants to
properly this year. For this thing to be done properly, itensure
done that it is
has created a
Separate department. Hope the company does better in future.
Which functions of
marketing have been highlighted in the above case?
Ans. The functions of
marketing highlighted in the above case are:
(1) Gathering and Analysing Market
Information: XYZ manufacturing
company has decided to identify the needs of the customers to start
marketing of the garments produced by it and for this, the companysuccessful
is doing
SWOT analysis (Strength, Weakness,
Opportunity and Threat Analysis).
(2) Marketing Planning:It has decided to make a
blueprint for the amount of
production it will do, the efforts behind promotion it will
actions it will undertake to achieve its put and all other major
objectives.
(3) Transportation: The physical movement for its prepared garments was
not proper last year and the company wants to ensure that it is done
year. properly this
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