Internal Assessments

Program – MBA Program

Subject – Marketing Management

Semester - 3

Assessment Type – (Subjective Assignment)

Questions & Answers:

1. What, according to BCG matrix, is the relative market-share of cash cows?

According to the BCG (Boston Consulting Group) matrix, cash cows are
products or business units with a high relative market share. Relative market share is
a measure of a company's market share in comparison to its largest competitor in
the same industry. In the BCG matrix, market share is represented on the horizontal
axis, while market growth rate is represented on the vertical axis.

Cash cows are positioned in the BCG matrix as having a high relative market
share, which means they have a large share of the market compared to their largest
competitor. This indicates that cash cows have a strong presence and a significant
market position within their industry.

Cash cows are typically mature products or business units that operate in
slow or stagnant market growth rates. Due to their established market position, they
generate substantial cash flows and profits, often surpassing the investment
required to maintain and support them. These products or business units are in a
stable and favorable position, allowing the company to milk the profits and generate
a positive cash flow.

The cash cows in the BCG matrix are characterized by a high relative market
share, indicating their dominant position within their industry. They are mature
products or business units operating in slow-growth markets, generating substantial
profits and cash flow for the company.

2. What is the significance of price-quality relationship between the product and

customer?
The price-quality relationship between a product and a customer holds
significant significance in the consumer decision-making process. It refers to the
perceived correlation between the price of a product and its quality or value. Here
are some key points highlighting the significance of the price-quality relationship:

Perceived Value: The price-quality relationship influences the perceived value of a

product. Customers often associate higher prices with higher quality and superior
performance. If the price aligns with the perceived quality, customers are more likely
to perceive the product as valuable and worthy of the investment.

Purchase Decision: The price-quality relationship plays a crucial role in a customer's

purchase decision. Customers consider whether the price justifies the perceived
quality and the benefits they expect to derive from the product. A favorable price-
quality relationship can positively impact the purchase intention, leading to a higher
likelihood of conversion.

Price Sensitivity: The price-quality relationship affects a customer's price sensitivity.

Some customers may be willing to pay a premium price for products they perceive to
have higher quality, while others may be more price-sensitive and prioritize lower-
priced alternatives. Understanding customer price sensitivity helps businesses
position their products effectively.

Brand Perception: The price-quality relationship contributes to the overall brand

perception. Premium pricing may position a brand as exclusive, high-end, or luxury,
appealing to customers seeking prestige or superior quality. On the other hand,
lower prices may position a brand as affordable, budget-friendly, or value-oriented.
The price-quality relationship influences how customers perceive and associate the
brand with specific attributes.

Competitive Advantage: A favorable price-quality relationship can provide a

competitive advantage in the market. If a product is perceived to offer better quality
at a reasonable price compared to competitors, it can attract customers and capture
market share. Conversely, a negative price-quality relationship can harm a brand's
reputation and competitiveness.

Customer Satisfaction and Loyalty: The price-quality relationship affects customer

satisfaction and subsequent loyalty. When customers perceive that the product
delivers the expected quality relative to the price paid, it enhances satisfaction.
Satisfied customers are more likely to become loyal customers, repurchase the
product, and recommend it to others.

Word-of-Mouth and Reputation: The price-quality relationship influences customer

word-of-mouth communication and brand reputation. Customers may share their
experiences with others, either positively or negatively, based on how the perceived
quality matches the price. Positive word-of-mouth can enhance brand reputation,
attract new customers, and contribute to long-term success.

Pricing Strategies: The price-quality relationship guides pricing strategies. Businesses

need to determine the appropriate pricing strategy that aligns with the perceived
quality of the product. Premium pricing strategies may focus on positioning the
product as high-quality, while value pricing strategies emphasize affordability
without compromising on quality.

Understanding and managing the price-quality relationship is crucial for

businesses to effectively meet customer expectations, optimize pricing strategies,
differentiate themselves in the market, and build strong brand equity. Striking the
right balance between price and perceived quality is essential for attracting and
retaining customers in a competitive business landscape.

3. What is the role of various channels in physical distribution?

Various channels in physical distribution play crucial roles in efficiently

moving products from manufacturers to end consumers. These channels, also known
as distribution channels or marketing channels, encompass the activities and
intermediaries involved in the physical flow and transfer of goods. Here are the key
roles of different channels in physical distribution:

 Manufacturer
 Wholesalers
 Retailers
 Distributors
 Agents and Brokers
 Logistics Providers
 E-commerce Platforms
 Physical Infrastructure

Manufacturer: The manufacturer is the producer of the goods and initiates the
physical distribution process. They play a pivotal role in ensuring product availability,
quality control, and timely production to meet market demand.

Wholesalers: Wholesalers act as intermediaries between manufacturers and

retailers. They purchase goods in large quantities from manufacturers and store
them in warehouses. Wholesalers then break down bulk quantities and distribute
the products to retailers, often offering logistical support and expertise.

Retailers: Retailers are the final point of sale where consumers directly purchase
products. They may operate physical stores, online platforms, or a combination of
both. Retailers play a vital role in product display, marketing, customer service, and
facilitating the purchasing process for end consumers.

Distributors: Distributors are independent entities that purchase goods from

manufacturers and sell them to retailers or end consumers. They often specialize in
specific product categories or industries and maintain a network of retail outlets or
clients. Distributors help manufacturers reach a wider market by leveraging their
distribution infrastructure and expertise.

Agents and Brokers: Agents and brokers act as intermediaries who facilitate
transactions between buyers and sellers. They do not take ownership of the
products but help connect manufacturers with wholesalers, retailers, or end
consumers. Agents and brokers may provide market insights, negotiate deals, and
handle administrative tasks on behalf of the parties involved.
Logistics Providers: Logistics providers play a critical role in physical distribution by
managing the transportation, warehousing, and inventory management of goods.
They ensure efficient movement of products from manufacturing facilities to
distribution centers, wholesalers, retailers, or end consumers. Logistics providers
may handle tasks such as packaging, shipping, tracking, and reverse logistics.

E-commerce Platforms: In the digital age, e-commerce platforms have become

important channels in physical distribution. Online marketplaces and platforms
enable manufacturers and retailers to sell products directly to consumers, bypassing
traditional brick-and-mortar retail channels. E-commerce platforms facilitate order
processing, payment transactions, and product delivery, making it convenient for
customers to access a wide range of products.

Physical Infrastructure: Physical infrastructure, such as transportation networks,

storage facilities, and distribution centers, is crucial for efficient physical distribution.
Infrastructure plays a vital role in ensuring timely delivery, minimizing transportation
costs, managing inventory, and optimizing overall supply chain operations.

Each channel in physical distribution contributes to the smooth flow of

products from manufacturers to end consumers. They add value by providing
services, expertise, and market access, ultimately ensuring that products reach the
right place, at the right time, and in the right condition. The selection and
management of appropriate distribution channels are important strategic decisions
for businesses to effectively reach their target markets and achieve competitive
advantage.

4. What are the main types of salespersons?

There are several main types of salespersons, each with their own unique
focus and approach. Here are some of the common types:

1. Inside Sales Representative

2. Field Sales Representative
3. Account Manager
4. Sales Development Representative (SDR)
5. Key Account Manager
6. Technical Sales Representative
7. Retail Sales Associate
8. Online Sales Specialist

Inside Sales Representative: An inside sales representative typically works from an

office and communicates with potential customers primarily over the phone, email,
or other digital channels. They often focus on lead generation, qualifying prospects,
and closing sales remotely.
Field Sales Representative: Field sales representatives spend a significant amount of
time meeting with customers in person, either at their offices or at designated
meeting places. They build relationships, demonstrate products, negotiate deals, and
close sales face-to-face.

Account Manager: Account managers are responsible for managing existing

customer accounts. They develop relationships with clients, ensure customer
satisfaction, identify upselling and cross-selling opportunities, and work to retain and
grow business from their assigned accounts.

Sales Development Representative (SDR): SDRs are often responsible for

prospecting and qualifying leads. They conduct outreach, make initial contact with
potential customers, and nurture leads until they are ready to be passed on to the
sales team for further engagement.

Key Account Manager: Key account managers handle strategic accounts that are of
high importance to a company. They focus on building and maintaining long-term
relationships with key clients, understanding their specific needs, and providing
tailored solutions to meet those needs.

Technical Sales Representative: Technical sales representatives possess expertise in

a particular industry or product category. They work closely with customers,
providing technical knowledge and assistance, understanding customer
requirements, and recommending solutions that align with the customers' technical
needs.

Retail Sales Associate: Retail sales associates work in brick-and-mortar stores,

assisting customers with product selection, answering questions, and closing sales on
the spot. They often focus on creating a positive in-store experience and meeting
individual sales targets.

Online Sales Specialist: With the rise of e-commerce, online sales specialists focus
on selling products or services through online platforms. They may engage with
customers through live chats, emails, or social media, providing product information,
addressing inquiries, and guiding customers through the online purchasing process.

These are just a few examples of the main types of salespersons. It's worth
noting that the specific roles and titles may vary between industries and
organizations, and some salespersons may combine elements of different types
depending on their responsibilities and the nature of their sales environment.
5. Why is publicity more credible than advertising?

Publicity is often considered more credible than advertising for several reasons:

Third-Party Endorsement: Publicity often comes in the form of media coverage, such
as news articles, interviews, or reviews. When a third-party, such as a journalist or an
influencer, endorses a product, service, or brand through unbiased coverage, it lends
credibility. The perception is that the information is coming from a trustworthy and
independent source, rather than directly from the company itself, which can make it
more persuasive to the audience.

Editorial Control: Unlike advertising, where companies have full control over the
content and messaging, publicity relies on the editorial decisions of media outlets.
Journalists and editors determine what is newsworthy and relevant to their
audience. When a media outlet chooses to cover a company or its offerings, it
indicates that they consider it noteworthy, which can enhance credibility.

Perceived Objectivity: Publicity is generally seen as more objective compared to

advertising. Advertising is a paid form of communication where companies have the
opportunity to highlight their products or services in a positive light. Publicity, on the
other hand, is often seen as more independent and unbiased since it is not paid for
directly by the company. This perceived objectivity can contribute to its credibility.

Trust and Authenticity: Publicity is often associated with earned media, meaning it is
the result of newsworthy events, interesting stories, or positive public perception.
This organic nature can create a sense of trust and authenticity among the audience.
People tend to trust information that is not explicitly driven by commercial interests,
and publicity can tap into that trust.

Social Proof: Publicity can generate social proof, which is the psychological
phenomenon where people look to others' actions and opinions to guide their own
behavior. When a product or brand receives positive publicity, it can influence
consumer perceptions and create a sense of validation. Seeing others endorse a
company through media coverage can increase its perceived credibility and influence
purchasing decisions.

While publicity may offer these credibility advantages, it's important to note
that advertising also has its own strengths, such as precise messaging control and
targeted reach. Both publicity and advertising can play complementary roles in a
comprehensive marketing and communications strategy, depending on the specific
goals and context of the company or brand.