Bc Marketing All Past Suggested Paper Ican

Suggested Answers December 2022 Examination (CAP II - Group II)
Paper 6: Business Communication and Marketing

Marks
All questions are compulsory.
Section -'A'
1. Read the case and answer the following questions. (5×4=20)
New Tech Motors was in a thinking process at the level of the Board of directors to
move a large number of employees from the Pune plant to their new Nano plant at
Sanand, Gujarath. However, the secretariat staff handling the board meetings in
Mumbai got a glimpse of this thinking process through one of the directors. One of
the employees in the secretariat told her friends at the Pune plant about the likely
move by the management. In a very short span of time, all employees at the Pune
plant came under the impression that they all were moving to Sanand, Gujarath.
The Employees Union at Pune was also forced by the employees to take up the
matter with the management. The union, in turn, took up the issue with the
management and gave an ultimatum to the management with a rider of going on
strike.
a) What form of communication is responsible for the chaos that has happened?
And explain other similar forms of communication.
b) Identify the barriers to communication in the above case.
c) What lessons would we learn from the episode?
d) What actions would you take as HR manager of the Pune plant under the
circumstances?
Answer:
1)
a) It is a form of informal communication that has played a very crucial role in this case. The
Board of directors at New Tech was in consultations. They had not taken any solid decisions.
They were just brainstorming. A junior staff picked up some of the fragments of the total talk,
added some from his or her side, and whispered that to someone closer. The message spread
like a wildfire and it created some chaos in the company.
In an organization, different forms of communication exist. There will be an official channel of
communication for formal exchanges. There will also be informal grape vines that may be
dangerous at times but are also important for the well-being of the employees.
b) There are many reasons why interpersonal communications may fail. In many
communications, the message (what is said) may not be received exactly the way the sender
intended. Barriers play a crucial role in making communication less effective.
There are many barriers to communication and these may occur at any stage in the
communication process. Barriers may lead to our message becoming distorted and we,
therefore, risk wasting both time and/or money by causing confusion and misunderstanding.
In the above case, the junior staff who might have listened to the executives might not have
been able to understand them properly, maybe because they were talking using jargon. The
difference in perception may be another barrier. Expectations or prejudices may also have
played a role as a barrier in the above case. The managers at New Tech must be aware of
these barriers and try to reduce their impact by continually checking to understand and by
offering appropriate feedback.
In the above case, the junior staff who might have listened to the executives might not have
been able to understand them properly may be because they were talking using jargon. The
difference in perception may be another barrier in the above situation as the different
stakeholders are viewing the same thing differently.
c) A good manager(s) should be very careful. He/she should be able to understand what is going
around in the organization. When it comes to sensitive issues, ensuring secrecy is very
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important. A small mistake on our part may cost an organization a lot. The junior staff who
became a vehicle here for the chaos should also learn from this that he/ she should pay
attention to what he or she is assigned. Being nosy may invite unnecessary trouble and it is
also not ethical to hear what one is not authorized to hear. Even if one hears something by
chance, he/ she should not reveal that secrecy.
d) I, as an HR manager of the Pune plant, under the given circumstances, would use all channels
of communication to deliver the truth to the employees. I would try to take all stakeholders in
confidence. Even if some of the employees had to be relocated to a new place, I would talk to
them properly. I may offer them some incentives for going there and working for us.
In order to ward off such kinds of unexpected troubles, I would also make some arrangements
in my organization so that no unauthorized person will get access to our secret information. I
would also encourage the practice of ethical communication between and among my
employees.
2. Why should one be free from the superiority of one’s own culture?
Suggest how patience and tolerance help us to acquire cross-cultural efficiency. (10)
Answer:
Superiority to one’s culture causes one to judge others by one’s own values. We expect
others to react as we would, and they expect us to behave as they would.
Misunderstandings naturally result. A North American who wants to set a deadline for
completion of negotiations is considered pushy by a Nepali. An Arab, who prefers a
handshake to a written contract, is seen as naïve and possibly untrustworthy by a North
American. These ethnocentric reactions can be reduced through knowledge of other
cultures and the development of increased intercultural sensitivity.
To function effectively in a global economy, we must acquire knowledge of other
cultures and be willing to change our attitudes. One desirable attitude in achieving
intercultural proficiency is that of tolerance. Closed-minded people cannot look beyond
their own ethnocentrism. Developing tolerance often involves practicing empathy, which
means trying to see the world through another’s eyes. It means being less judgmental
and more eager to seek common ground. Saving face and promoting social harmony are
important in many parts of the world. Face refers to the image a person holds in his or
her social network. Positive comments raise a person’s social standing, but negative
comments lower it. Moving beyond narrow ethnocentric views often requires tolerance.
Being tolerant also involves patience. If a foreigner is struggling to express an idea in
English, Americans must avoid the temptation to finish the sentence and provide the
word that they presume is wanted. When we put words into their mouths, our foreign
friends often smile and agree out of politeness, but our words may in fact not express
their thoughts. Remaining silent is another means of exhibiting tolerance. Instead of
filling every lapse in conversation, North Americans, for example, should recognize that
in Asian cultures people deliberately use periods of silence for reflection and
contemplation.
3. Answer the following questions briefly. (5×2=10)

a)
How can an organization improve group communication?
b)
Why are writing negative messages challenging?
Answer:
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3 a) Grouping employees into a team structure does not mean that they will automatically
function as a team. A group must go through a developmental process to begin to function
as a team. Members need training in such areas as problem solving, goal setting, and
conflict resolution. Teams must be encouraged to establish the “three Rs”—roles, rules,
and relationships.
The self-directed work team can become the basic organizational building block to best
ensure success in dynamic global competition. Skills for successful participation in team
environments are somewhat different from those necessary for success in old-style
organizations:
▪ Ability to give and take constructive criticism, listen actively, clearly impart one’s views
to others, and provide meaningful feedback.
▪ Skills in breaking down emotional barriers, such as insecurity or condescension.
▪ Ability to promote team functioning by removing process barriers, such as rigid policies
and procedures.
▪ Understanding of the feelings and needs of coworkers so members feel comfortable
stating their opinions and discussing the strengths and weaknesses of the team.
3 b) Negative message is challenging to write because we know our readers will not be happy to
receive the news as these messages say ‘no’ to the reader. Negative messages mean that the
reader will not be able to accomplish his/her goals. However, when we need to say ‘no’ to
our readers, we usually mean ‘not under these circumstances’. A ‘no’ now is not
necessarily a ‘no’ forever.
When writing negative messages, remember that your audience does not want to hear what
you have to say. The importance of diplomatic writing is amplified in negative messages.
Here, it is important that your readers understand the negative response, yet the goodwill is
maintained. A more realistic aim, however, is to get them to understand your situation or
reason for the rejection or refusal. Ideally, therefore, you must appeal to your readers’ sense
of reason or logic, explaining rationally why you have to turn down their request.
4. Write short notes on: (4×2.5=10)
a) Impromptu speech
b) Basic strategies for strengthening business communication skills
c) Negotiation in business communication
d) Circulars for effective business meetings
Answer:
4 a) An impromptu speech is when you're asked to speak in public without prior notice. An
impromptu speech is given with little or no preparation, yet almost always with some advanced
knowledge of the topic. This is sometimes referred to as "off the cuff" or "spur of the moment".
For example, in class, a teacher may ask a student to give a short impromptu speech about a
topic that was in the assigned readings. One may follow 5w 1 h (What, Where, When, Who,
Why – How) structure to quickly plan an impromptu speech.
4 b) The skilled business personnel need to develop in them appropriate business skills so that they
can communicate successfully and get things done accurately. There are various strategies
identified for business persons to develop their communication skills. Basically, they need to
develop the habit of continuous reading and writing about their related field, and they need to
take part in the interaction programs on how to make communication more effective. Other
common strategies include:
• Listening attentively, cooperatively and actively;
• Interacting politely, cooperatively and contextually;
• Behaving with full sense of business ethics;
• Developing team spirits, group interactions, conferences and sharing;
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• Self-monitoring and collaborating activities;

• Learning to communicate through written as well as electronic modes with accurate format;
• Communication trainings on intercultural communication and workforce diversity;
4 c) ‘Negotiation’ is the term used commonly in the sector of business communication to refer to the
common effort made by two parties intending to minimize the conflict between the two. It is a
significant process of conflict resolution. It aims to settle the dispute through intra-group
facilitation, compromise, mutual understanding and co-ordination. The two conflicting parties
are required to go through the situation with certain critical reflections, and they are kept
together face-to-face with a kind of realization about the situation. They are ready to reach the
solution and get involved in the negotiation process. They have open discussion with the motive
of negotiation. They try to make ‘give and take’ results on one hand, and on the other they try to
compromise upon certain bottom line of their views and positions. They reach the ‘win-win’
situation. The role of the third party is quite subtle unlike in the processes such as mediation and
arbitration.
Some of the important strategies for encouraging negotiation and discouraging conflicts are:
• Working with group spirit and identity;
• Discouraging personal skepticism, lobbying, influences and thoughts;
• Training on group autonomy and group dynamism;
• Generating the sense of cooperation, endurance and collaboration.
4 d) A circular refers to a formal note sent to the participants of a meeting informing and inviting
them about the meeting. It is a form of a letter or an e-mail which is usually written by the
secretary of the board or committee. It involves details of the meeting.
Business meetings are organized in the organizations to make the discussions and decisions
regarding different issues and matters. The success of any meeting may depend on essential
preparatory work. Part of this work involves circulating the notice and agenda about the meeting
to all the members or participants of the meeting. The agenda are also required in many contexts
of effective business meetings to be discussed and negotiated among the members. Such agenda
are sent to the members along with the circulars focusing on date, time, venue, etc. of the
meeting.
The members can prepare themselves about the topic of discussion, and they can contribute
more effectively if they get circular in time. They can also become punctual at the meeting place
because of the circular sent to them prior to the meeting. If such circulars are not sent to the
participants of a meeting, that meeting may not be effective at all.
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Marks
Section -'B'
5.
Read the following case carefully and answer the questions given below: (4×5=20)
E-commerce in Nepal
E-commerce in Nepal is still in its juvenile state. Top e-commerce companies in
Nepal like Daraz, Sastodeal, Gyapu, Smartdoko, and Hamro Bazar are mostly facing
issues related to customer trust, consistency, delivery speed, centralized market,
pricing issues, and competition with offline stores. In an economy like Nepal’s, only
a few people prefer to save time over money. This is the main reason why an e-
commerce company whose goal is to save customers time and make the shopping
experience simpler is still struggling to penetrate the market. Similarly, online fraud,
duplicate products, and conning sellers online have been putting a question mark on
the trustworthiness of an e-commerce site. Despite these challenges, revenue in the
e-commerce market is projected to reach US$ 1,141.00 million by the end of 2022,
and user penetration is expected to reach 41.8% by the end of 2022 and increase up
to 51.7 % by 2025.
Daraz, being the largest e-commerce site in Nepal, is also facing similar challenges.
Coming from Kaymu to Daraz, and then being acquired by Alibaba, one of the
biggest e-commerce portals of the world, Daraz Nepal has changed its strategies
from being sales driven to providing customer satisfaction. Daraz believes that
customer satisfaction is the key to the success of e-commerce in Nepal and has been
consistently working on its marketing strategies. It has been providing promotional
offers, discount vouchers, flash sales and has been hosting campaigns like 11:11,
Black Friday, and Mobile weeks where the prices of selective products are
discounted by up to 60%.
However, Daraz has been still facing problems with its operational process. In order
to include as many products and sellers on their platform, they sometimes fail to
judge the seller’s capability of coping with Daraz's delivery process. Since Daraz
does not have full control over the product delivery system of the sellers, Daraz's
reputation is hampered if the seller fails to provide quality products within the said
delivery time, leading to poor customer experience and dissatisfied users.
Another e-commerce site that has successfully attracted thousands of customers and
vendors and partners in Nepal and is Sastodeal. Sastodeal, established in 2011, is one
of the popular e-commerce sites which has captured its own market share. It has also
recently collaborated with Myntra and Flipkart, renowned e-commerce sites in India,
and has been delivering Indian products to Nepali market. Sastodeal offers its
customers a whole lot of products of groceries, apparel, home appliances, and
electronics from thousands of business owners and vendors. Also, Sastodeal
guarantees the return and exchange of the product within a particular time. Despite
its continuous effort to provide quality products to customers and numerous
marketing strategies to attract a Nepali audience, Sastodeal is facing a hard time in
competing with a multinational brand like Daraz.
Questions:
a) What are the main issues of the case?
b) What is the scope of e-commerce in Nepal?
c) If you were the CEO of Sastodeal, how would you compete with a multinational
company like Daraz?
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d) Why do you think Nepalese audiences aren’t willing to shift toward online
shopping? Justify your answer.
Answer
5 a) E-commerce in Nepal is still in a volatile stage. However, it could become a milestone in
the future for economic development in Nepal. Recent data shows that it has tremendous
scope in the future. The followings are the main issues of the case.
➢ There is huge competition in e-commerce activities.
➢ Customer trust, consistency, delivery speed, centralized market,
➢ Pricing issues, and competition with offline stores.
➢ Resistance to change still prevails among customers.
➢ Only a few people prefer to save time over money.
➢ Online fraud, duplicate products, and conning sellers online have been putting a question
mark on the trustworthiness of an e-commerce site.
➢ Daraz, Sastodeal, Gyapu, Smartdoko, and Hamro Bazar are the main competitors.
5 b) E-Commerce is buying and selling, marketing, servicing delivery, and payment of products,
services, and information over the internet, intranets, extranets and other networks, between
an inter-networked enterprise and its prospects, customer’s suppliers, and other business
partners. There is tremendous scope for e-commerce in Nepal. The scope of e-commerce is
as follows:
➢ B2B: In this business model involve businesses selling their products or services to
other businesses. These buyers may or may not always be the end-users and frequently
resell the products to other consumers.
➢ B2C: In this business model, individuals sell their products without the involvement of
any organization.
➢ C2B: It refers to a business model where consumers can deliver value to a business
rather than the reverse. Referral programs, data sharing, etc., are examples of C2B
models.
➢ Major Multinational companies have become partners of Nepalese e-commerce
companies in Nepal in a short time.
➢ The data shows that revenue in the e-commerce market is projected to reach US$
1,141.00 million by the end of 2022,
➢ User penetration is expected to reach 41.8% by the end of 2022 and increase up to 51.7
% by 2025.
5 c) Sastodeal, established in 2011, is one of the popular e-commerce sites that has captured its
market share. It has successfully attracted thousands of customers and vendors and partners
in Nepal. If I were the CEO of Sastodeal, I would apply the following strategies will apply
in the future to increase Sastodeal’s market share.
➢ It has also recently collaborated with Myntra and Flipkart, renowned e-commerce sites
in India, and has been delivering Indian products to Nepali market. Side by side I will
use another strategy “ Sastodeal from Nepal”.
➢ Sastodeal from Nepal applies another strategy, which will encourage different producer
groups within Nepal. And collect their production. These products should be exported
to different countries, which might help to increase market share in the future.
➢ Online companies face huge issues regarding the quality of the delivered products. I will
sign MOU with my suppliers to make sure that the products delivered to the customers
are of the best quality to improve the customer experience of my clients.
➢ POD (Point of difference): I would try to follow the POD approach with customers like
prompt delivery at a good price.
➢ Strictly apply a customer feedback system, and make improvements as per the feedback.
➢ Marketing skims, periodic campaigns, and B2C strategies in order to increase the market
share.
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5 d) Not all Nepali consumers are ready to easily accept online shopping for many reasons. It is
the traditional shopping habit of Nepali people who like to go to the market, and see the
product by themselves before purchasing and there is a friendly relation relationship vendor
and the customer. Most Nepali are used to shopping still like this way in Nepal.
Perception and acceptance: The major challenge faced by businesses in doing e-
commerce business in Nepal is customers’ perception of online shopping. Due to the
numerous online frauds and duplicate products, people are still hesitant to trust and accept
the products sold online.
Logistics: The major challenge faced by businesses in doing e-commerce business in Nepal
is logistics. It is a big problem prevailing in the Nepali market to deliver goods, acquire
goods and maintain proper supply chain management. Also, the government rules aren’t
updated and friendly for the betterment of the online shopping experience in Nepal.
Physically purchasing: Many Nepali think visiting shops and stores physically and
purchasing products is a more convenient and “used to” thing than shopping online. Other
than youths, the youngest and the older generation isn’t ready to easily accept the idea of
buying things online.
Shopping behavior and trust: Because of the shopping behavior and habits of visiting
stores physically, Nepali customers believe and trust their local shopkeepers instead of
trusting someone sitting behind the computer in the next part of the city of the country.
Ease: While purchasing online is relatively easier than buying things physically but still,
there are few things we need to consider here. Purchasing online is efficient if you have all
the technologies and you know what you are doing. And after purchasing online you have
to wait for at least a few couples of hours/days before being delivered. But when you go to
the store physically you can get the product instantly.
Government Rules: The government rules aren’t updated and aren’t friendly for the
betterment of the online shopping experience in Nepal.
6)
What is promotion mix? Discuss the factors affecting in selection of promotion mix. (2+8=10)
Answer
6) Promotion includes all the activities the company undertakes to communicate and promote its
products to target market. Promotion mix refers to the promotional tools which are used to
promote the goods and services. Promotion mix is the combination of promotional tools that
can be used to inform, remind, persuade to the customers and image building of the brand
and organization. Marketing manager has to decide what combination of the available
promotional tools would be used to promote the product to a target market. Promotion mix
refers to the components of the promotion that is used to promote the brand and organization.
Advertisement, publicity, personal selling, sales promotion and publicity are the major tools
of promotional tools.
There are various factors which influence to the selection of promotion mix which are as
follows;
i) Availability of funds: The availability of funds for the promotion is the basic
determinants for the selection of the promotion mix. If organization has the adequate
funds for promotion, they are free to select the any type promotional tools. They can
select expensive promotional tools like advertisement, sales promotion, personal selling.
But, if organization has not adequate budget for the promotion then organization must use
the non-expensive promotional tools and non-paid form of promotional tools like
publicity.
ii) Nature of product: The promotional tools can be differing based on the nature of
product. There is different nature of products. Some are consumer goods and some are
industrial goods. Some are expensive goods and some are least expensive goods. Some
are technical items and some are non-technical items. Generally, consumer items require
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advertisement, publicity and sales promotion and industrial items requires personal
selling, publicity. As well as, personal selling is suitable for the expensive items and
advertisement and sales promotion is used for the non-expensive items. Personal selling
is useful for the technical items and advertisement, sales promotion, publicity are suitable
for the non-technical items.
iii) Promotional objectives: Promotional objectives are considered in the selection of
promotion mix. There are different promotional objectives such as reminding,
persuading, re-assuring, informing, image building, creating brand loyalty etc. If
organization has the reminding and informing objectives, advertisement and publicity
tools are useful. But, in the persuading promotional objective personal selling, public
relations are useful for the promotion. In the brand loyalty promotion objective, re-
assuring and advertisement promotional tools are suitable.
iv) Nature of market: Nature of market also influence in the selection of the promotional
tools. There is different nature of markets. Some are consumer market and some are
industrial market. Some are geographically dispersed market and some are geographically
concentrated market. Advertisement, sales promotion, publicity are useful for the
consumer market but personal selling and publicity is suitable for the industrial market.
Likewise, personal selling can be used for the geographically concentrated market but
advertisement, publicity, sales promotion can be used for the geographically scattered
market.
v) Stage of product life cycle: The stage of product life cycle also influence to the selection
of the promotion mix. There are four stages of product life cycle such as introduction,
growth, maturity and decline stage. Each stage requires the separate marketing strategies
and promotional strategies. Separate promotional tools are used for each stage of product
life cycle. Introduction stage requires the heavy advertisement and publicity for the
promotion. Growth stage requires the light advertisement and publicity for the promotion.
Sales promotion has significant role in the maturity stage of product life cycle. None of
the promotional tools are used in the decline stage of product life cycle because all the
promotional tools have the tonic down in the decline stage of product life cycle.
vi) Promotional strategies: Promotional strategies also influence in the selection of
promotional tools. There are different types of promotional strategies and based on these
strategies promotional tools can be selected.
➢ Push vs pull strategies: Push strategy is directed towards middleman. The product is
pushed through the marketing channel in this strategy. Manufacturer persuades to the
wholesalers and the wholesaler persuades to the retailer and retailer persuades to the
consumers through the word of mouth. Therefore, personal selling is used in the push
strategy for convincing and pushing to the middleman and consumers.
In the pull strategy, product is promoted directly to the consumers through mass
communication tools like advertisement, publicity. In this strategy, consumers are
persuaded towards the products and consumer demand product to retailer, retailer
demand to wholesaler and wholesaler demand product to manufacturer.
➢ Interpersonal vs mass communication strategy: Interpersonal communication
strategy refers to the face to face communication with the buyers. Therefore, for the
interpersonal communication strategy, personal selling is used to individually
convince to the buyers.
But, in the mass communication, mass media is used to communicate to the ultimate
users. Therefore, advertisement, publicity is suitable in the mass communication
promotional strategy.
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5.
a)
Define market research. Also, discuss the importance of market research. (1+4=5)
b)
What is product? What are the different levels of product? Explain with
examples. (2+3=5)
Answer
7a) Market research is an organized effort to gather information about target markets and
customers: know about them, starting with who they are. It is an important component of
business strategy and a major factor in maintaining competitiveness. The importance of
market research is clear from the points explained below:
• Make well-informed decisions: Using market research techniques, the management can
make business decisions on the basis of obtained results that back their knowledge and
experience. Market research helps to know market trends, hence to carry it out
frequently to get to know the customers thoroughly.
• Gain accurate information: Market research provides real and accurate information
that will prepare the organization for any mishaps that may happen in the future. By
properly investigating the market, a business will undoubtedly be taking a step forward,
and therefore it will be taking advantage of its existing competitors.
• Determine the market size: A researcher can evaluate the size of the market that must
be covered in the case of selling a product or service in order to make profits.
• Choose an appropriate sales system: Select a precise sales system according to what
the market is asking for, and according to this, the product/service can be positioned in
the market.
• Learn about customer preferences: It helps to know how the preferences (and tastes)
of the clients change so that the company can satisfy preferences, purchasing habits, and
income levels. Researchers can determine the type of product that must be manufactured
or sold based on the specific needs of consumers.
• Gather details about customer perception of the brand: In addition to generating
information, market research helps a researcher in understanding how the customers
perceive the organization or brand.
• Analyze customer communication methods: Market research serves as a guide for
communication with current and potential clients.
• Productive business investment: It is a great investment for any business, because
thanks to it they get invaluable information, it shows researchers the way to follow to
take the right path and achieve the sales that are required.
7 b) Anything offered by marketer for customer satisfaction is product. Almost everything that
we come across in our daily life is product – the book “ Marketing” is a product; “The
Kathmandu Post” newspaper is a product; Himalayan Hotel which provides the benefit of a
comfortable night’s with lodgings is a product; idea of Family Planning Association of
Nepal “ small family, happy family” is a product.
All of them have some utility behind them; all of them cater to and satisfy some needs of
some people. Thus we can define product as a “need satisfying entity.”
In essence, customers are buying much more than a set of attributes when they buy a
product. They are buying want-satisfaction in the form of the benefits they expect to
receive from the product.
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Levels of Products are core product, actual product, augmented product, expected product
and potential product which are explained as follows:
• Core Product: The service or benefit the customer is really buying. The core product
stands at the center of the total product. It consists of the core, problem solving benefits
that customer seeks when they buy a product or service. The most basic level is core
product, which addresses the question: What is the buyer really buying? A hotel guest is
buying rest and sleep. A girl buying cosmetics is buying beauty. Marketer must see
themselves as benefit providers.
• Actual Product: The product planner must next build an actual product around the core
product. Actual products may have as many as five characteristics; a quality level,
features, design, brand name, and packaging. Some of the examples of actual products
are: pen, biscuits, television, etc.
• Expected product: Expected product is a set of attributes and conditions buyer
normally expect when they purchase the product. Hotel guest expect clean bed and
bathroom, fresh towel. Expected products are built around core benefits and basic
product.
• Augmented Product: It is the totality of benefits a customer receives or experiences in
obtaining the product. The marketer prepares an augmented product that exceeds
customer expectations.
• Potential product: Product which encompasses all the possible augmentations and
transformations the product or offering might undergo in the future it potential product.
It is potential augmentation in future which is not available in present time.
6)
Write short notes on: (5×2=10)
a)
Market segmentation
b)
Pricing
c)
Marketing intelligence system
d)
Direct marketing
e)
Stages of the consumer buying process
Answer
8 a) Market segmentation: is the process of dividing a large, heterogeneous groups of buyers
into small homogenous groups of buyers. Market segmentation is a process of dividing the
total market for a goods and services into several smaller groups, such that the members of
each group are similar with respect to the factors that influence demand.
8 b) Price: is the exchange value that is sacrificed by the buyers to obtain the goods and service.
Price is the amount of money and other items with utility needed to acquire a goods and
services. Pricing is the function of determining the value of product in monetary term.
Pricing is the process of determination appropriate value of particular goods and services.
8c) Marketing information system: provides information about everyday happenings in
marketing environment. It involves environmental scanning. It is a set of procedures and
sources used by managers to obtain everyday information about pertinent development in
the marketing environment. The sources of marketing intelligence are: marketing
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managers, sales force, middlemen, commercial detectives, marketing information section

etc.
8 d) Direct Marketing : It is direct connections with carefully targeted individual customers to
both obtain and immediate response and cultivate lasting customer relationship- the use of
direct mail, the telephone, email, internet and other tools to communicate directly with
specific customers.
8 e) Stages of Consumer Buying Process: Consumer behavior is the study of individuals,
groups, or organizations and all the activities associated with the purchase, use, and
disposal of goods and services. Consumer behavior consists of how the consumer's
emotions, attitudes, and preferences affect buying behavior. There are five stages of the
consumer buying process: finding a problem, gathering information, finding solutions,
making a purchase, and reviewing the purchase.
Need recognition
Information search
Analysis of alternatives
Purchase decision
Past purchase evaluation
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Business Communication
Section -'A'
1. Read this case and analyze it in detail, using the questions given below. (4×5=20)
Harry is a 27-year-old who is a foodservice manager at a casual dining restaurant. Harry is

responsible for supervising and managing all employees in the back of the house.
Employees working in the back of the house range in age from 16 years old to 55 years
old. In addition, the employees come from diverse cultural and ethnic backgrounds. For
many, English is not their primary language.
Harry is SERV Safe® certified and tries his best to keep up with food safety issues in the
kitchen but he admits it‟s not easy. Employees receive “on the job training” about food
safety basics (for example, appropriate hygiene and handwashing, time/temperature, and
cleaning and sanitizing). But with high turnover of employees, training is often rushed and
some new employees are put right into the job without training if it is a busy day.
Eventually, most employees get some kind of food safety training. The owners of the
restaurant are supportive of Harry in his food safety efforts because they know if a food
safety outbreak were ever linked to their restaurant; it would likely put them out of
business. Still, the owners note there are additional costs for training and making sure food
is handled safely.
One day Harry comes to work and is rather upset even before he steps into the restaurant.
Things haven‟t been going well at home and he was lucky to rummage through some of the
dirty laundry and find a relatively clean outfit to wear for work. He admits he needs a
haircut and a good hand scrubbing, especially after working on his car last evening. When
he walks into the kitchen, he notices several trays of uncooked meat sitting out in the
kitchen area. It appears these have been sitting at room temperature for quite some time.
Harry is frustrated and doesn‟t know what to do. He feels like he is beating his head against
a brick wall when it comes to getting employees to practice food safety.
Harry has taken many efforts to get employees to be safe in how they handle food. He has
huge signs posted all over the kitchen with these words: KEEP HOT FOOD HOT AND
COLD FOOD COLD and WASH YOUR HANDS ALWAYS AND OFTEN. All
employees are given a thermometer when they start so that they can temp food. Hand sinks,
soap, and paper towels are available for employees so that they are encouraged to wash
their hands frequently.
Questions:
a. What are the communication challenges and barriers Harry faces?

b. What solutions might Harry consider in addressing each of these challenges
and barriers?
c. What Standard Operating Procedures (SOPs) would be helpful for Harry to
implement and enforce?
d. What are some ways Harry might use effective communication as a
motivator for employees to follow safe food handling practices?
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Answer:
a) Communication challenges abound at any workplace. Harry has some common

challenges in his operation. Language barriers like not all employees speak English
as their first language making verbal communication a challenge at times. Similarly,
generational (age) barriers are another challenge here. Having employees in various
age categories can pose a unique set of challenges. While the younger generation is
used to texting and using shortened messaging, their vocabulary may not be
consistent with that of older employees. Work values and attitudes may also affect
communication between younger and older employees. Cultural and ethnic barriers
in food safety practices may also be a challenge for Harry to overcome. Finally,
Harry has faced the non-verbal challenge like his body language (appearance) is
telling others he does not care about personal appearance and cleanliness.
b) Harry might consider the following solutions to the identified challenges and
barriers:
i) Language barriers: Several potential solutions might be addressed here

including posting signs in employees‟ primary language. Putting signage
with visuals, not just words. Harry might learn some simple words in the
employees‟ primary language to help show interest in the employees.
ii) Generational (age) barriers: Currently there are our generations in the
workforce and each potentially has a different preferred method of
communication. While the younger generation might prefer to receive text
messages as their preferred way of communication, older employees may
not find this method of communication acceptable. Consider your
employee‟s preferences and be willing to communicate a message in a few
different ways.
iii) Cultural and ethnic barriers: Harry may need to identify cultural beliefs and
work to understand the ethnic barriers related to food safety. For instance,
two employees come from the same country and they have made comments
that controlling temperature in their country is not a priority; food can be at
room temperature for long periods of time and nothing ever happened.
iv) Nonverbal challenges: Harry‟s appearance is a nonverbal cue to employees.
His appearance is important as he is a role-model to the employees. His
actions and behaviors should be consistent with what he is expecting of
them. For example, because he is expecting the employees to follow proper
handwashing procedure, he should also use proper handwashing
procedures.
c) Standard Operating Procedures (SOPs) serve as the written documentation of best

practices and serves as the framework for organizational policy and structure. SOPs
identify the who, what, why, when, and how of foodservice practices for
employees. Part of the supervisor‟s role is to assure SOPs are in place,
communicated to employees, and followed. For this case, two helpful SOPs would
be:
i) New Employee Orientation SOP: Due to time constraints of “busy days”

and high turnover, Barry currently finds orienting new employees to be a
challenge. Although it may take time at the beginning, the payoff may be
great and save time in the long run.
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ii) Employee Health and Personal Hygiene SOP: Although SOPs are generally
intended for employees, it is important to note that as role models,
supervisors/managers should generally adhere to operational SOPs. Harry‟s
own lack of adherence to personal hygiene standards indirectly tells
employees that appearance and hygiene are not important. His own personal
hygiene and appearance should serve as an example to employees – clean,
unwrinkled clothing, clean hands, free from grease and dirt with neatly
trimmed hair are a must for Harry to be a motivator for his employees to
have good appearance and hygiene. At present, his nonverbal
communication is telling them personal hygiene and appearance is not
important.
d) All supervisors, including Harry, have many ways to use effective communication
in motivating employees. A few suggestions are listed below:
i) Provide sincere and encouraging words when employees follow safe food
handling behaviors. Use a communication method appropriate for an
employee, so supervisor must know a bit about the employee. For a high
schooler, maybe it‟s a quick “thank you” text message or an older employee
it might be a hand written thank you note.
ii) Serve as a role model through verbal and nonverbal communication. It‟s
said that “actions” speak louder than words, so Harry can, through his
actions, convey a message to employees. For example: wear a clean
uniform.
2. As society and the workforce become more diverse, successful communication among
the various identity groups brings distinct advantages. What are the advantages of a
diverse workforce and how can we communicate effectively in order to capitalize on
such diversity? (10)
Answer:
As society and the workforce become more diverse, successful communication among the
various identity groups brings distinct advantages. Customers want to deal with companies
that respect their values. They are more likely to say, “If you are a company whose ads do
not include me, or whose workforce does not include me, I will not buy from you.” A
diverse staff is better able to respond to the increasingly diverse customer base in local and
world markets.
In addition, organizations that set aside time and resources to cultivate and capitalize on
diversity will suffer fewer discrimination lawsuits, fewer union clashes, and less
government regulatory action. Most important, though, is the growing realization among
organizations that diversity is a critical bottom-line business strategy to improve employee
relationships and increase productivity. Developing a diverse staff that can work together
cooperatively is one of the biggest challenges business organizations face today.
Tips for communicating with diverse audiences on the job.
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Harmony and acceptance do not happen automatically when people are dissimilar. This
means that companies must commit to diversity. Harnessed effectively, diversity can
enhance productivity and propel a company to success. Mismanaged, it can become a drain
on a company‟s time and resources. The following suggestions can help us find ways to
improve communication and interaction:
One should seek training. If our organization is experiencing diversity problems, it may
benefit from sensitivity training. We should spend time reading and learning about
workforce diversity and how it can benefit organizations. One must look upon diversity as
an opportunity, not a threat. Intercultural communication, team building, and conflict
resolution are skills that can be learned in diversity training programs.
One should understand the value of differences. Diversity makes an organization

innovative and creative. Sameness fosters an absence of critical thinking called groupthink.
Even smart people working collectively can make dumb decisions if they do not see
different perspectives. Diversity in problem-solving groups encourages independent and
creative thinking.
One should learn about one‟s cultural self. We should try to stand outside and look at
ourselves. These may be invisible to us until challenged by people who are different.
One should make fewer assumptions. We should be careful of seemingly insignificant,

innocent workplace assumptions. For example, we should not assume that everyone wants
to observe the holidays with a Christmas party and a decorated tree. Celebrating only
Christian holidays in December and January excludes those who honor other kinds of
festivals such as Dashain.
One should build on similarities. One should be prepared to consider issues from many
perspectives, all of which may be valid. Accept that there is room for various points of
view to coexist peacefully. We should look for common ground in shared experiences,
mutual goals, and similar values.
3. Answer the following questions briefly. (5+5=10)

a) Developing good telephone manners reflects well on us and on our
organization. With a little forethought, we can project a professional image
and make our telephone a productive tool. Mention some of the ways of
receiving telephone calls professionally.
b) You are interested to apply for an advertised post of marketing officer in an
international company located in Kathmandu, Nepal. Write a short resume
to attach along with the application.
Answer:
a) These are some tips that help us be effective in receiving telephone calls.
One should answer promptly and courteously. Try to answer the phone on the first or
second ring if possible. One should smile as we pick up the phone.
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One should identify oneself immediately. In answering our telephone or someone
else‟s, we should provide our name, title, or affiliation, and a greeting. We should try
to speak clearly and slowly.
One should be responsive and helpful. If we are in a support role, we should be

sympathetic to callers‟ needs and show that we understand their situations. Instead of
I don’t know, try “let me investigate”.
One should be cautious when answering calls for others. We should be courteous
and helpful, but don‟t give out confidential information. It is better to say, She is
away from her desk or He is out of the office than to report a colleague‟s exact
whereabouts. Also, be tight-lipped about sharing company information with
strangers.
We should take messages carefully. Few things are as frustrating as receiving a

potentially important phone message that is illegible. We should repeat the spelling
of names and verify telephone numbers. We should write messages legibly and
record their time and date.
We should leave the line respectfully. If you must put a call on hold, let the caller
know and give an estimate of how long you expect the call to be on hold. Give the
caller the option of holding. Say, Would you prefer to hold, or would you like me to
call you back? If the caller is on hold for a long period of time, we must check back
periodically.
We should explain what we are doing when transferring calls. We must give a
reason for transferring, and identify the extension to which we are directing the call
in case the caller is disconnected.
b)
Prasita Thapa
thapaprasitaxxxx@gmail.com
9841xxxxxx
Career objective: To serve a business organization with full motivation and zeal to work
and to uplift the Nepalese business organizations from the dynamic marketing strategies.
Academic Qualification: MBA with GCA 4 (A+) from TU in 2020 with four case studies
on online marketing.
Work experience: Involved for five years as a marketing officer in four international and
one national company. Worked on the major themes such as marketing strategies, client-
responses, promotion of daily sales, launching of international brand in Nepal, and so on.
Special skills: public dealing, oral and written communication, proposal writing
Languages: English, Nepali, Hindi, Maithili and Newari
Date of issue: Dec 2, 2021

Signature: PRASITA
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(This is just an outline. A good resume is designed in an attractive format, giving
information usually in bullet points.)

a) Zoom Presentation
b) Postures and gestures
c) Group dynamism
d) Business etiquette
Answer:
a) Zoom presentations allow presenters to communicate their ideas in a more

exciting, creative way. Audience members also seem to appreciate the
cinematic, interactive quality of these presentations. Many business presenters
feel limited by multimedia slides, which tend to be linear. But zoom
presentation can easily integrate audio and visual materials. Zoom is not only an
excellent tool for online video meetings and lectures but it can also be used as a
powerful tool for recording video presentations. We can initiate a Zoom
meeting without any other participants, and we still have all of Zoom‟s
presentation tools at our disposal, as well as the ability to record.
b) A person‟s posture can convey anything from high status and self-confidence to
shyness and submissiveness. Leaning toward a speaker suggests attentiveness
and interest; pulling away or shrinking back denotes fear, distrust, anxiety, or
disgust. Similarly, gestures can communicate entire thoughts via simple
movements. However, the meanings of some of these movements differ in other
cultures. Unless one knows local customs, one can get oneself into trouble. In
the United States and Canada, for example, forming the thumb and forefinger in
a circle means everything is OK. But in parts of South America, the OK sign is
obscene. We should be conscious of our body gestures and postures if we want
to be successful in life.
c) Group dynamism is one of the most required attributes to become a professional
team player. The interactions and processes that take place among the members
of a team are called group dynamics. Productive teams tend to develop flawless
norms, informal standards of conduct that members share and that guide
member behavior. Group dynamics are influenced by several factors such as
assuming role among team members, phases of team development, the team‟s
success in resolving conflict, and the team‟s success in overcoming resistance.
d) Attention to etiquette is essential to success in every form of business
communication so much so that etiquette is considered an important business
skill. Poor etiquette can hinder team efforts, drain morale and productivity,
drive away customers and investors, and limit your career potential. Four key
areas in which good etiquette is essential are the workplace, social settings in
which you represent your employer, online interactions in which you represent
your employer, and when using mobile devices.
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Marketing
Section -'B'
5. Read the following case carefully and answer the questions given below: (4×5=20)
ABC Pvt. Ltd.

Since, ABC Pvt. Ltd. came into operation in 1986 as a tobacco Company. Later it diversified its
operation and involved in Garments in 2004 and started producing Safety Matches in 2007. But
now both the operations are closed. Now the company is planning to manufacture fast moving
consumer goods (FMCG), like noodles, biscuits and others. Likewise, it has already decided to
establish new manufacturing plant in Tanahun district.
The external marketing environment is as follows;
Political Environment
The direction and stability of the political factors are a major consideration for managers for
formulating Company strategy. The ABC Company has also been affected by the political factors
of Nepal. The political factors have determined the following constraints in the smooth
functioning of the Company.
The political instability in Nepal has also affected the Company. The government of Nepal has
placed different tax regulation on the cigarettes sales in Nepal. The cigarettes are not allowed to
be advertised in the electronic media like Television and Radio. They lead to lower coverage
towards the consumers of its products. The government decision regarding the tax rate, interest
rate, minimum wage legislation affects the pricing policy of the Company. The government
awareness programs on injuries caused due to smoking of cigarettes has also been problem for
Company promotion.
Economic environment
The economic factors that effects on the ABC Company are as follow;
The existing market rate affects the pricing policy and the economy of the Company. The
inflation rate and recession also affect the Company. The level of disposal income of the
costumers also affects the Company growth and strategy formulation. The propensities of the
people to spend on cigarettes also affect the economic decision of the Company. The import
duties are high in Nepal which restricts the Company from importing more and it tern affect the
economy of the Company.
Social Environment
Social, cultural, demographic and environmental changes have a major effect upon all products,
services, markets and customers. The social forces are more or less dynamic. The ABC Company
is also affected by the social changes and the social factors. The social factors that have placed
constraint on the Company operation are as:
As cigarette is not assumed as a favorable product by the society, there is hesitance to talk about it
and consume it. The smoking in Nepal has not yet been so freely adopted and the people often
hide while smoking. Company's social and moral ethics are also causing promotional difficulties
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for its sales i.e. as good corporate citizens; the Company doesn't prefer smoking to the citizen
below 18 years. Due to the demographic changes in the population most of people use cheaper
brands for which the market for premium brands is very low in terms of value.
There are some businessmen who do not like to make profit from selling cigarettes brands which
destroy the Company opportunity of creating the new market. Women smoking cigarettes in
Nepal are also not accepted by the society hence the ABC Company has the disadvantages of
creating new consumers.
Technological Environment
The ABC Company is also one the organization in Nepal that adapts and uses the latest
technology for marketing and manufacturing the product. The Company has invested lots of
amount on the R&D activities to find out the customer‟s needs and preferences and also
determines the latest and possible technology to make the product. The Company has been
launching new products in regular interval of time to satisfy the different customer's requirement.
The brands like Surya light, Shikhar light and menthol are the outcome of the creative
technological wok of the ABC Company. The Company has adopted all the latest technology for
the smooth functioning of its business. From marketing to finance, from manufacturing to
distribution. The Company has all the latest technology in use. It has the linkage of its Kathmandu
head office with its Simra factory. The order placed in the Kathmandu office are directly send to
the Simra factory for the dispatch due the networking between the factory and the office.
Legal Environment
The National Health Education, Information and Communication Centre, Ministry of Health and
Population, has drafted the Smoking (Prohibition & Control) Act, 2058.
In order to reduce the consumption of tobacco products the National Health Education
Information and Communication sector (NHEICC) has been carrying out several anti-tobacco
mass media activities. These activities have been reducing the domestic market.
Excise tax has charged on tobacco products to raise revenue and to discourage consumption.
Requirement of putting warning labels on tobacco-product packaging and advertising as
"Smoking is injurious to health". Health tax two paisa per stick of cigarette products has been
charging from July 15, 1994. Government has been regulated to produces print, audio and audio-
visual materials with the objective of educating the audience about the harmful effects of tobacco
use. Every year on 31st May World No-Tobacco Day is observed. Ban on smoking in public
places. Ban on advertising and promotion of tobacco products since 14 December 1998. The
Smoking (Prohibition & Control) Act, 2058 (2001/02)
Likewise, international pressure on tobacco control is rising with the initiation of WHO, and other
NGOs/INGOs. Prohibition of all forms of advertisement, promotion and sponsorship is growing
worldwide. These shows, the ABC Company Limited has to face with so many threats in the
future.
Questions:
a) What is the legal environment of the ABC Company? Describe.
b) Explain the social environment which influence in the design of marketing mix of ABC
Company.
c) What is the technological environment of ABC Company? Describe.
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d) How the political environment influence in the marketing activities of ABC Company? Explain.
Answer:
a) Marketing environment is the forces and factors that influence the business activities of the
organization and legal environment is also one important marketing environment which influence
the marketing activities. The followings are the legal environment of ABC Nepal;
 The National Health Education, Information and Communication Centre, Ministry of Health
and Population, has drafted the Smoking (Prohibition and Control) Act, 2058.
 In order to reduce the consumption of tobacco products the National Health Education
Information and Communication sector (NHEICC) has been carrying out several anti-tobacco
mass media activities. These activities have been reducing the domestic market.
 Excise tax has charged on tobacco products to raise revenue and to discourage consumption.
 Requirement of putting warning labels on tobacco-product packaging and advertising as
"Smoking is injurious to health".
 Health tax two paisa per stick of cigarette products has been charging from July 15, 1994 that
increases the price of the products.
 Government has been regulated to produces print, audio and audio-visual materials with the
objective of educating the audience about the harmful effects of tobacco use.
 Ban on smoking in public places. Ban on advertising and promotion of tobacco products since
14 December 1998.
 International pressure on tobacco control is rising with the initiation of WHO, and other
NGOs/INGOs.
 Prohibition of all forms of advertisement, promotion and sponsorship is growing worldwide.
These shows, the Surya Nepal Company Limited have to face with so many threats in the
future.
b) Social environmental is other important marketing factor. The changes of social factors have a
major effect upon the marketing activities of ABC Nepal. The social factors that have placed
constraint on the SNPL are as follows;
 Our society perceives that it is bad habit to drink the cigarette.
 It is assumed by our society the cigarette is not a favorable product and there is hesitance to talk
about it and consume it.
 Smoking is considered as drug in our society which influence in the sales of product.
 In Nepal, the smoking has not yet been so freely adopted and the people often hide while
smoking.
 Company want to maintain the social and moral ethics are also causing promotional difficulties
for its sales and promotional activities.
 The company doesn't prefer smoking to the citizen below 18 years.
 Most of the Nepalese people use cheaper brands for which the market for premium brands is
very low in terms of value.
 Most of the businessmen do not like to make profit from selling cigarettes brands which destroy
the company opportunity of creating the new market.
 It is not accepted by our society for women smoking cigarettes in Nepal; therefore the ABC
Nepal has the challenges of creating new consumers.
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c) Technological environment is the most dynamic environment than compare to others and it is also
major factor that influence for the business success. The followings are the major technological
environment of ABC Nepal.
 The ABC Nepal is one organization in Nepal which is using the latest technology for
marketing and manufacturing the product.
 The ABC Nepal has been invested lots of money for the Research and Development activities
to find out the customer‟s needs and preferences and also determines the latest and possible
technology to make the product.
 The ABC Nepal has been launching new products in regular interval of time to satisfy the
different customer's requirement by using the new technologies.
 New technology has been used by ABC Nepal to produce new brands like Surya light, Shikhar
light and Menthol.
 The ABC Nepal has adopted the latest technology for the smooth functioning of its business.
 For manufacturing and distribution of products, the ABC Nepal has been used latest
technology.
 There is direct network between the factory and Kathmandu head office for dispatch of order
placed in the Kathmandu and it makes easy for order collection.
d) ABC Nepal is one organization which is operating in the fast changing political environment. Here
is the political instability, this heavily influence in the business policy, industrial policy, tax policy,
labor policy etc. The direction and stability of the political factors are a major consideration for
managers for formulating company strategy. Because the strategies, policy, laws of the country are
developed by the political system. The ABC Nepal has also been affected by the political factors of
Nepal. The political factors have determined the following constraints in the smooth functioning of
the ABC Nepal.
 The organizational activities of ABC Nepal have been affected by the political instability in
Nepal.
 The Nepalese government has placed different tax regulation on the cigarettes sales in Nepal,
this influence in the determination of price of the product.
 The cigarettes are not allowed to be advertised in the electronic media like Television and
Radio; it influences on the promotion activities of the organization of products.
 The government decision regarding the tax rate, interest rate, minimum wage legislation affects
the pricing policy of the company.
 The government awareness programs on injuries caused due to smoking of cigarettes has also
been problem for ABC Nepal.
 Nepal government has imposed excise tax on tobacco products to raise revenue and to
discourage consumption, this increase the price of the products.
 Nepal government has banned on advertising and promotion of tobacco products on Television
and Radio, this constraints on the promotional activities of products.
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6. What is market segmentation? Explain the process of market segmentation. 10
Answer:
Market segmentation is a marketing strategy that involves dividing a broad target market into a
subset of consumers who have common needs or desires and using media channels and other
touchpoints that best allow reaching them. Market segmentation is also known as market
segregation. It is the process of dividing the heterogeneous market into a homogeneous market. It is
the process, by which a marketer attempts to match the needs and wants of customers having
similar needs and behaviors. Market segmentation is a division of a total market into groups. The
group should be large enough for marketing purposes and should be homogeneous with the same
preference.
Market Segmentation is achieved on a four-stage process:
Step 1: Segment Identification
The first step in the segmentation process is to identify the market segments for the product. The
market segment is identified by the survey, analysis, and profiling. The survey is conducted to
collect the data related to the need of the market and to study the characteristics of the market. In a
survey, demographic features, psychological, behavioral, and geographical features are studied. The
information collected through the market survey is analyzed and the factors affecting product
demand are categorized into various factors. All analyzed data are profiled according to their
similarity and market segments are identified.
Step 2: Segment Evaluation
The segment identified should be evaluated from several aspects. Generally, the segment identified
is evaluated on three basic criteria. They are:
- Segment size and growth
- Segment structural attractiveness
- Organizational objective and resources
Segment size should be in correspondence to organizational size with high growing sales volume.
Segment structural attractiveness should be evaluated according to the characteristics of segment
rivalry, new entrants, and substitute products, buying power of customers, and bargaining power of
suppliers. Besides, these organizational objectives and resources should be evaluated.
Organizational objectives and resources should be balanced with segments.
Step 3: Analysis of Market Segment
After evaluating the market segment, the segment attractiveness from the point of size and growth
are analyzed. Analysis of total demand, market share of competitors, competitor's strengths and
weaknesses, organizational resources, and the marketing mix are analyzed. Analysis of market
segment involves the following aspects:
- Government policies and laws
- Calculation of probable total demand for the product segment.
- The market share of the competitor and the firm.
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- The relative strength of the competitors in relation to product-service offers, quality, price,
customer loyalty, distribution networks, etc.
- The organization's resources to meet the challenges in the market segment.
- Possible marketing mix alternatives to be implemented in the segment.
Step 4: Segment Selection
After proper and careful evaluation, the organization needs to select one or more possible segments.
The selected segments are the target market. Target markets are selected after several segment
evaluations and analyses. Various factors like segment attractiveness, organizational objectives and
resources, government policies and laws, social responsibility, desired market share, coverage, etc.
should be evaluated and analyzed. The best market segment should be selected after the evaluation
and analysis of the segment. The marketers can enter and service several market segments like
single segment coverage, multi-segment coverage, product specialization, market specialization,
full market coverage, and niche market.
7.
a) Explain the components of the market information system. 5
b) What stages that consumer follows in buying decision? Explain. 5
Answer:
a) The Top four components of a marketing information system are as follows:
i. Internal record System
ii. Marketing intelligence system
iii. Marketing decision support system
iv. Marketing research System
An MIS should provide updated information. Hence, it is necessary to use new techniques for speed
and accuracy in the MIS. Thus, various subsystems are used to develop information. Following are
the four components of MIS:
i) Internal record system
Marketing managers rely on internal reports related to customer orders, sales, price levels, cost,
inventory levels, receivables, and payables. The heart of the internal record system is the order-to-
payment cycle. Customers send orders to the firms. The sales department prepares invoices and
transmits copies to various departments. The billing department sends invoices as quickly as
possible. It is the order from the customer that sets the internal record keeping. This record becomes
a vital source of information for analysis of sales, inventory levels, profit margins, credit policy to
customers, etc.
ii) Marketing Intelligence System
The marketing intelligence system is a set of procedures and sources used by the managers to obtain
everyday information about the marketing environment. A company can collect marketing
intelligence in the following ways:
 Salesforce
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 Distributors, retailers, and other intermediaries
 External networking
 Published data
 Customer feedback
This is a technique of collecting information at a low cost. The online customer feedback facilities
make it more convenient for both the customer and the firm to collect and evaluate information.
iii. Marketing Decision support system
A growing number of organizations are using marketing decision support systems to help the
managers in taking better decisions. It is a system supported by software and hardware to gather
information from businesses and the environment.
It helps managers in providing evidence for the decisions taken by them. The current marketing
software programs assist in designing marketing research studies, market segmentation, selling
prices, budgeting, analyzing media, and planning sales force activity.
iv. Marketing Research system
It acts as a tool for accurate decision-making in marketing. It is useful for studying and solving
different marketing problems. Marketing research techniques are used by manufacturers, exporters,
distributors, and service organizations. Marketing research is a piece of applied knowledge. Hence,
it provides alternative solutions to deal with a specific problem.
b) a) A consumer has to pass the various stages to complete the buying process which are as follows;
i) Need recognition: The consumer buying begins with the need recognition. When consumers
feel the need of something it is called need recognition. Need is recognized by the internal and
external factors. The internal factors are those stimulations which drive the consumer to seek
reducing the objects like hunger, thirst, sex, sleep, shelter etc. External factors are those which
stimulate to purchase something such as advertisement, purchasing display, sales forces.
ii) Information search: After the identification of specific need the consumer search the
information about the product that can fulfill the need. The information can be about the
features, advantages, benefits of the alternative products. There are two sources of information
such as internal sources and external sources.
 Internal sources: Consumer scan their past memories based on their memories are internal
sources of information.
 External sources: Consumer can get the information from the outsides sources basically
from the personal sources, commercial sources, public sources, experimental sources.
iii) Evaluation of alternatives: After getting the information of various alternatives, consumers
evaluate them. Consumers use some criteria to find out which best satisfy their needs.
Consumer evaluate the alternatives in terms of followings;
 Product class attributes: Features of the product, brand name, price of the product,
quality of the product and service of the product are the product class attributes and these
factors are also can be used to evaluate the alternatives.
 Brand beliefs: On the basis of brand beliefs consumers evaluate the alternatives. Brand
beliefs are formed based on their past experience.
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 Utility functions: The utility function is the expected total satisfaction from various
attributes of the different brands and utility functions are also can be used to evaluate the
alternative brands.
iv) Purchase decision: After evaluating alternatives, consumers make the purchase decision.
Generally consumer tends to purchase the brand for which they have made purchase
intention. There are two factors which influence to purchase decision which are as follows;
 Social factors: Consumer‟s purchase decision is influenced by the attitude of other persons
like family members, friends, neighbors etc.
 Situational factors: The purchase decision of the consumers is normally based on their
known income, availability, expected terms and conditions. An unexpected change in any
of these situations may lead consumers to revise their purchase decision.
v) Post purchase evaluation: After purchasing the product consumer use the product and they
may be satisfied and dissatisfied. Satisfied consumers continue to purchase the product and
dissatisfied customers stop purchasing the product. Basically, in high involvement product,
consumers constantly evaluate their purchase decision.
When consumers feel anxiety by the product, this drives to the consumers two course of
action like;
 Seek favorable information about the product and also seek support from others on the
purchase decision.
 Try to reduce the anxiety by removing the product from the use by returning it, reselling it
and throwing it away altogether.
8. Write short notes on: (5×2=10)

a) Relationship marketing
b) Branding
c) Service product
d) Sales promotion
e) Price discrimination
Answer:
a) Relationship marketing
Main goal of the relationship marketing is to building the long term relationship with the
customers and other stakeholders. Relationship marketing is the practice of building long-term
satisfying relations with the key parties in order to earn and retain their business. Relationship
marketing is the process of creating, maintaining and enhancing strong, value laden relationship
with customers and other stakeholders.
b) Branding
Branding is a process of creating a unique name, term, design, symbol, or any other feature to
the products. It helps to identify manufacturer of the product. It plays an important role in
marketing. It reflects the features of the product.
c) Service product
Service products is the act or performance which is performed for satisfying the customer
needs. A service product is any activities that one party can offer to another that is essentially
intangible and does not result in ownership of anything. Its production may or may not be tied
to a physical product. Intangible, inseparable, variable and perishable are the main features of
the service product.
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d) Sales promotion
Sales promotion refers to the demand stimulating devices designed to supplement advertising
and facilitate personal selling. Sales promotion consists of a diverse collection of incentive
tools, mostly short term, designed to stimulate quicker and greater purchase of particular
product or service by consumers or traders. Sales promotion is a direct inducement which
offers an extra value and incentive for a product to sales forces, consumers and traders such as
free gift, sample, coupon, discounts etc.
e) Price discrimination
Price discrimination is a micro-economic pricing strategy where identical or largely similar
goods or services are executed at different prices by the same provider in different markets. It
is essentially relies on the variation in the customers' willingness to pay and in the elasticity of
their demand.
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Section -'A'
1. Read the following case and answer the questions that follow. (4×5=20)
Sunlight Publications and Distributers Pvt. Ltd. is an established publication house in
Kathmandu, and it publishes books and other reading materials on business and
management. This company has recently conducted a public auditing regarding their
goods/ published materials and services. Particularly, they conducted a research project
focusing on the readers’ opinions on the quality of their books and the services that they
are delivering through publication and distribution. Specific objectives were set and tools
were developed to lead the project successfully.
After they carried out the project, they offered you as an expert of business communication
an assignment to write an effective report on the project. The nature of the study was
survey. At least 1,000 readers including students, professors and professionals of the
management field were sampled. They were given a short close-ended questionnaire, and
their opinions and perceptions were collected. These data are expected to be analyzed and
interpreted in the research report.
Questions
a) Write an introduction paragraph and at least three objectives of the research report.
b) What would be their questionnaire like? Develop a close-ended questionnaire with at
least five items.
c) Write a sample paragraph of the analysis of data that you may include in your report.
Mention statistical figures such as percentage too.
d) What would be the major components of the report? Introduce them very briefly.
Answers:
a) Sunlight Publications and distributers Pvt. Ltd. is an established and successful publication house
in Kathmandu that publishes books and materials on business and management. We are satisfied
with the current trends of our business growth, transaction and promotion. However, our way of
understanding our business and our clients has always been too traditional and clumsy. After the
consultation with an expert on business communication, we have identified the urgency of
knowing the reactions of our own clients or consumers who are obviously the readers of our
books about our publications and service delivery. This project was conducted after the
realization of this kind of gap or urgency.
OBJECTIVES
The major objectives of the project were:
1) To find out the reactions of the readers about the quality of the publication;
2) To explore their opinions about the quality of services that we are providing;
3) To recommend some useful strategies for better delivery of quality products and services
from the publication house.
b) The questionnaire used in this project would be more or less like the following.
Statements Strongly Agree Disagree Strongly
Agree Disagree
The quality of our publication is of
international level particularly for citation and
references.
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Materials published from our house are purely
academic and worthy of consultation by
scholars.
Books published from this organization are
thoroughly revised and well edited.
Books and other published materials are
easily available in the Nepalese market.
The e-copies of books and materials can be
bought online.
c) Most of the university graduates graded the quality of the publications as of the international
standard. 40% of them responded that they strongly agree to this fact, while 35% simply agreed
to the statement. Other 25% graduates were not ready to agree the international quality of the
publications. Similarly, more than 80% professors agreed that the materials published from this
house were of the international level. Nearly 18% professors disagreed this idea. In the same
way, 72% graduates mentioned that the publications were worth of consultation and 81%
professors found the materials worth of consultation for their academic purposes.
d) The major components of the survey report are:
• Introduction with general background, statement of problem, objectives, limitations, etc.
• Methodology with sources of data, tools for data collection, samples, data analysis
procedures, etc.
• Discussion with analysis of data
• Conclusion with findings and recommendations.
2. You work for a company named Software.com. The company wants to hold its next
company-wide meeting in a resort. The CEO has asked you to find a conference location
for your 80 engineers, product managers, and marketing staff. He wants the company to
host a four-day combination sales conference/vacation/retreat at some spectacular spot.
He suggests that you start by inquiring at Hotel Marigold, Butwal. You check its Web site
and discover interesting information. However, you decide to write a letter so that you can
have all information that you need.
You estimate that your company will require about 80 rooms. You will also need three
conference rooms for one and a half days. You want to know room rates, conference
facilities, and entertainment options for families. You have two periods that would be
possible: April 20-24 or July 10-14. Write a letter to the manager of Hotel Marigold,
Butwal. 10
Software.com
Mid-Baneswor, Kathmandu
Devkota Street
45/456
January 20, 2021
John Kaka
Marigold Hotel
Butwal Municipality
Faketown-08
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Dear Mr. Kaka
Would you please provide me with the following information regarding your resort? We are
planning to hold a four-day conference in your resort if it meets our basic requirements. Please
answer the following questions:
a. Could you provide us with about 80 rooms for four days?
b. Does your resort have 3 conference rooms to accommodate around 120 staff members?
c. Would you be able to provide us with facilities like food and entertainment? We may need a
disco hall for the evenings after 8 pm.
d. What are the standard room rates and what would be the room rates if we used it at an off-
peak time?
We would be much obliged if we receive the reply within a week. Looking forward to using your
location for our conference. Thank you.
Sincerely
Amdhan Rai
Managing Director
3. Answer the following questions briefly. (5+5=10)

a) What should management do to improve intercultural communication in the
workplace?
Answer
Improving intercultural communication is a management responsibility which extends over a
range of activities listed below. These are just some of the areas in a business which may have
cultural assumptions built into them, including:
o company policy and working conditions;
o training;
o industrial relations and the work of the personnel or human resources department;
o the house journal and other publications;
o customer relations.
The organization must set up effective consultation procedures. The managers should get out
of their ivory towers and sample the real world. They should work to change the perception
of the staff. They should realize that there is not a quick-fix solution to intercultural
communication, but do identify problem areas and provide an agenda for consultation. Each
organization must identify its own problems and set its own agenda. The management should
enter the process of improving cross-cultural communications with as few preconceptions as
possible. The company must be committed to improving intercultural relationships through
genuine consultation and negotiation. The ultimate aim is to build a corporate culture to which
all employees can subscribe.
b) How do you explain the fact that ambiguity may be a primary source of
misunderstanding in nonverbal communication? Discuss.
Answer
Nonverbal communication is the transfer of information through the use of body language including
eye contact, facial expressions, gestures, and more. For example, smiling when you meet someone
conveys friendliness, acceptance, and openness. Everyone uses nonverbal communication all the
time whether they know it or not. But nonverbal signs can be ambiguous. They may differ from
place to place or even context to context. We can never be sure that others understand the
meanings we intend to express with our nonverbal behavior. The ambiguity of nonverbal
communication also arises because meanings change over time.
Nonverbal communication is also learned and guided by rules. These rules reduce the
ambiguity of nonverbal communication by telling us how certain behaviors are to be
understood, and when and where certain behaviors are appropriate and inappropriate. For
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example, most of us understand that people take turns speaking and that we should whisper
in libraries but it’s appropriate to yell at ball games. We know that we are supposed to raise
our hands if we want to ask a question during a lecture but don’t need to raise our hands to
speak when interacting with friends. We dress differently for religious services, classes, dates,
and job interviews. These agreed-upon rules reduce but don’t completely eliminate the
ambiguity of nonverbal communication. In order to avoid such miscommunications, one must
be aware of nonverbal cues, and contexts.

a) The grapevine
Answer
The grapevine is the communication that develops among organization members and is not
necessarily prescribed by the formal structure and hierarchy of the organization but grows out
of organization members’ curiosity, interpersonal attraction, and social interaction. It is that
mixture of leaks, conjecture, educated guesses and gossip that circulates in an organization.
b) Meta-perception
Answer
As well as directly perceiving our own behaviour and the behaviour of others, we can also
reflect on how those other people are perceiving us. This has been called ‘meta-perception’
and has been shown to be an important factor in determining how people react to one another.
c) Technical and financial proposals

Answer
A technical proposal is a document where the writer introduces the product, explains how it
can help solve the recipient's issues, identifies the company's plan for execution, and
provides technical details of the deal. A financial proposal is a written report that details the
future of a business's economy by addressing its monetary needs and budget. In these reports,
we must follow the rules of good technical writing as it can be very difficult for readers if it
is not written in the proper format and the proper style.
d) Information overload
Answer
Information overload is known as the excess of information available to a person aiming to
complete a task or make a decision. This hinders the decision-making process, resulting in a
poor or even no decision being made. Information overload is usually caused by the existence
of multiple sources of information, over-abundance of information, difficulty in managing
information, and irrelevant or unimportant information. This is particularly important because
people may experience stress due to information overload. This stress is also described as
“information anxiety.” Most of the time, information anxiety isn’t caused by a large amount
of information in itself, but rather by a large amount of irrelevant information. Therefore, we,
as communicators, must be careful enough while sharing information with our readers.
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Marketing
Dabur Nepal
Beauty forms one of the biggest consumer industries in today’s economies due to increasingly
uniform yet competitive standards of good looks worldwide. With the rising popularity of all
things healthy and natural, it is a little surprising that Dabur Vatika beauty, hair, and skincare
products are one of the most vied for in the South Asian market.
Dabur Nepal Pvt. Ltd (DNPL) started its operation in Nepal in 1992, in association with Dabur
India Ltd, which is one of the leading “manufacturers in Ayurveda-based consumer goods.”
The Dabur Nepal factory, which was first set up at Parwanipur launched its Vatika range of
cosmetic products in the year 1999. Cutting-edge technology, highly trained personnel, and
the most rigorous manufacturing processes ensure that Dabur Nepal’s products meet the
highest international standards. With an investment of Rs. 150 million Dabur Nepal Pvt. Ltd
established a state-of-the-art greenhouse facility at Banepa, about 25 km from Kathmandu in
1988. This greenhouse facility can produce 4-5 million trees of medicinal saplings every year.
All the requisite climate parameters for uniform growth of trees like temperature, humidity,
etc. are controlled by automatic computer systems. The company has planted more than one
million trees at different locations so far. A total of more than 70 hectares of land area has
been used for the cultivation of medicinal plants.
Vatika from Dabur is the leading brand of herbal beauty products. The Vatika range of hair
care and skin care products includes Vatika Hair Oil, Vatika Shampoos, Vatika Fairness Face
Pack, and Vatika Honey & Saffron Soap. Each of these Vatika products has natural herbs as
their active ingredients, which promise the best nourishment and beauty.
The market for the Vatika product range is regularly growing. The product has been able to
respond to the demands of consumers. The size of its consumers has reached about 3 million.
The products are sold through 25,000 outlets throughout the country. The marketing
proposition of the brand has always been to produce a premium up-market product that
focuses on individual needs rather than on collective” says SK Das, unit head of the Dabur
Nepal.
Vatika with its pioneering efforts across categories has various achievements to its record
since the launch of the mother brand. Initially, Vatika Hair Oil used to come in blue packs
with coconut oils in it, later the color of the pack was changed into a green with a mushroom-
like cap. The cap design was changed to a flip-open style with the launch of Vatika Shampoo
in 1999. The shampoo was launched as a premium natural offering that would condition the
hair with the ingredients from traditional recipes such as henna, green almonds, and shikakai.
The success of Vatika Shampoo forced the larger competitor to also introduce natural
ingredient-based products. Vatika anti-dandruff shampoo was another successful launch of
Dabur Nepal. The shampoo has lemon as the natural cure for the dandruff problem.
b) Why has Dabur Nepal been able to achieve a competitive advantage in the
Nepalese market?
c) Analyze and evaluate the company’s marketing strategies.
d) Why Nepalese consumers are attracted to natural products?
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Answer
1 a) The main issues of the case are the following:
● Beauty forms one of the biggest consumer industries in today’s economies.
● Global competition has led the companies to constantly update their products as the
consumer’s demand.
● Consumers these days are extremely conscious about their health and are inclined
towards organic and natural products.
● Dabur Vatika beauty, hair, and skincare products are one of the most vied for in the
South Asian market.
● Dabur Nepal has strategically planted its greenhouse facility at Banepa, which can
produce 4-5 million saplings of medicinal plants every year.
● Vatika’s range of hair care and skin care products has natural herbs and its active
ingredients promise the best nourishment and beauty.
● Dabur Nepal has a total of 25,000 outlets throughout the country.
● Dabur Vatika with its pioneering effort across categories has various achievements to
its record since the launch of the mother brand.
● Dabur minutely cares about the consumer’s demands like Vatika changed the pack
color to green with a mushroom-like cap.
● Dabur’s next premium successful product is Vatika ‘anti-dandruff shampoo’.
1 b) Dabur Nepal started its operation in Nepal in 1992 in association with Dabur India Ltd,
which is one of the leading “Manufacturers in Ayurveda-based consumer goods”. The
following points can be considered for its success in Nepal:
● Strategic location: The company’s location is based at Parwanipur, which is near the
border of India, and the company's greenhouse is situated at Banepa, only 25 km from
the capital city Kathmandu.
● Advanced Technology: The Company uses highly advanced technology in the
production and operation process which increases manufacturing efficiency.
● Trained Personnel: The Company has recruited trained employees who are less
likely to make manual errors during the manufacturing process which in turn increases
its production efficiency.
● Huge Investment: The Company has established a greenhouse facility at Banepa with
a total investment of 150 million rupees which can produce 4-5 million trees of
medicinal saplings every year. This greenhouse facility has all the requisite climate
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parameters for uniform growth of trees like temperature, humidity, etc. are controlled
by automatic computer systems.
● Pricing: The Company also has a competitive advantage for pricing as most of their
products have premium prices as the company follows the product line concept in
marketing.
● Products as per the customer’s demand: The company’s range of hair care and skin
care products such as Vatika hair oil, Vatika Shampoos, Vatika fairness cream, Face
pack, and Vatika Honey and Saffron Soap consists of natural ingredients which are
liked by the modern sophisticated customers.
1 c) Marketing is the creating, communicating, and delivering goods and services to the target
groups. Dabur Nepal researched setting up the company and found that the nature of
geography and the health-conscious customer, that also applies the same situation of any
customer around the world about the sensitivity of health. By this statement, the
company has applied the following marketing strategies:
● Dabur Nepal did research and selected beauty and skin products, which is necessary
for each individual
● Dabur Nepal followed a product line approach by including hair care and skin care
products, such as Vatika Hair Oil, Vatika Shampoos, Vatika Fairness Face Pack, and
Vatika Honey & Saffron Soap. Each of these Vatika products has natural herbs and
active ingredients which promises the best nourishment and beauty.
● Dabur Nepal follows a strategic distribution policy throughout the nation with more
than 25,000 outlets.
● Dabur Nepal follows a premium pricing policy.
● Psychological treatment with the local people through huge investment for herbal
product plantations.
1 d) If we look at the recent trends, not just Nepalese customers but customers all around the
world are more attracted to natural and organic products. Following are some of the
reasons why Nepalese customers are attracted to natural products:
a. They are eco-friendly

By using products made up of natural ingredients, the customers can choose to live a
lifestyle that respects the earth and doesn’t harm the environment. It gives them the
“moral satisfaction” that they have done something good for themselves and the
world.
b. They are Chemical Free:
Customers nowadays are very health conscious and are aware of the side effects of
different chemicals used as major ingredients in various products. By using natural
products with no pesticides, chemicals, or processed additives and picking organic
products means a smaller risk of disease, illness, and disorders.
c. They are Sustainable:
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By using natural products, customers power their economic and social development
and many 'ecosystem services' to ensure an uninterruptedly healthy planet - from a
clean supply of air, water, food, and raw materials, to disease regulation and space
for recreation.
2. What do you know about new marketing concept? Discuss the fundamental
principles of new marketing concept. (3+7=10)
Answer
2) The marketing concept, based on central doctrines crystallized in the mid-1950s, challenges
the three business orientations. The marketing concept holds that the key to achieving
organizational goals consists of the company being more effective than its competitors in
creating, delivering, and communicating customer value to its chosen target markets.
The marketing concept starts with a well-defined market, focuses on customer needs,
coordinates all marketing activities affecting customers, and makes profit by creating long-
term customer relationship based on customer value and satisfaction.
Thus, under marketing concept, customer focus and the value are the paths to sales and
profits. This concept is based on “we make what we can sell.”
The marketing concept takes an outside-in perspective. It starts with a well-defined market,
focuses on customer needs, coordinates activities that affect customers, and produces
profits by satisfying customers.
Target Market
No marketer can satisfy the needs of all customers by offering single product. Thus, market
segmentation is essential to implement new marketing concept. Market segmentation is
customer-oriented philosophy where total heterogeneous market is divided into common
homogeneous small groups under specific criteria. Selected market segment is called target
market. Companies do best when they choose their target market(s) carefully and prepare
tailored marketing programs. For example, junior Horlicks for Children, Lux soap for
beauty, Liril soap for freshness, Pepsodent for strong teeth, Close up for fresh breath etc.
Customer Needs
A company can carefully define its target market yet fail to correctly understand the
customers’ needs. Clearly, understanding customer needs and wants is not always simple.
Some customers have needs of which they are not fully conscious; some cannot articulate
these needs or use words that require some interpretation. We can distinguish among five
types of needs: (1) stated needs, (2) real needs, (3) unstated needs, (4) delight needs, and
(5) secret needs.
Responding only to the stated need may shortchange the customer. For example, if A
customer enters cosmetics shop and asks for a lipstick, she is not asking for lip color or
chemicals, she is going to buy beauty. If the salesperson suggests another alternative
product that would provide a better solution, the customer may appreciate that the
salesperson met her need and not her stated solution.
A distinction needs to be drawn between responsive marketing, anticipative marketing, and
creative marketing. A responsive marketer finds a stated need and fills it, while an
anticipative marketer looks ahead to the needs that customers may have in the near future.
In contrast, a creative marketer discovers and produces solutions that customers did not ask
for, but to which they enthusiastically respond. Sony exemplifies a creative marketer
because it has introduced many successful new products that customers never asked for or
even thought were possible: Walkmans, VCRs, and so on. Sony goes beyond customer-led
marketing: It is a market-driving firm, not just a market-driven firm. Akio Morita, its
founder, proclaimed that he doesn’t serve markets; he creates markets.
Why is it supremely important to satisfy the needs of target customers? Because a
company’s sales come from two groups: new customers and repeat customers. One
estimate is that attracting a new customer can cost five times as much as pleasing an
existing one. And it might cost 16 times as much to bring the new customer to the same
level of profitability as that of the lost customer. Customer retention is thus more important
than customer attraction.
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Integrated Marketing
When all of the company’s departments work together to serve the customers’ interests,
the result is integrated marketing. Integrated marketing takes place on two levels. First, the
various marketing functions—sales force, advertising, customer service, product
management, marketing research—must work together. All of these functions must be
coordinated from the customer’s point of view.
Second, marketing must be embraced by the other departments. According to David
Packard of Hewlett-Packard: “Marketing is far too important to be left only to the
marketing department!” Marketing is not a department so much as a company-wide
orientation.
To foster teamwork among all departments, the company must carry out internal marketing
as well as external marketing. External marketing is marketing directed at people outside
the company. Internal marketing is the task of hiring, training, and motivating able
employees who want to serve customers well. In fact, internal marketing must precede
external marketing. It makes no sense to promise excellent service before the company’s
staff is ready to provide it.
Managers who believe the customer is the company’s only true “profit center” consider the
traditional organization chart—a pyramid with the CEO at the top, management in the
middle, and front-line people and customers at the bottom—obsolete. Master marketing
companies invert the chart, putting customers at the top. Next in importance are the front-
line people who meet, serve, and satisfy the customers; under them are the middle
managers, who support the front-line people so they can serve the customers; and at the
base is top management, whose job is to hire and support good middle managers.
Profitability
The ultimate purpose of the marketing concept is to help organizations achieve their
objectives. In the case of private firms, the major objective is profit; in the case of non-
profit and public organizations, it is surviving and attracting enough funds to perform
useful work. Private firms should aim to achieve profits as a consequence of creating
superior customer value, by satisfying customer needs better than competitors.
How many companies actually practice the marketing concept? Unfortunately, too few.
Only a handful of companies stand out as master marketers: Procter & Gamble, Disney,
Wal-Mart, Milliken & Company, McDonald’s, Marriott Hotels, American Airlines, and
several Japanese (Sony, Toyota, Canon) and European companies (IKEA, Club Med, ABB,
Marks & Spencer). These companies focus on the customer and are organized to respond
effectively to changing customer needs. They all have well-staffed marketing departments,
and all of their other departments—manufacturing, finance, research and development,
personnel, purchasing— accept the customer as king.
Most companies do not embrace the marketing concept until driven to it by circumstances.
Various developments prod them to take the marketing concept to heart, including sales
declines, slow growth, changing buying patterns, more competition, and higher expenses.
Despite the benefits, firms face three hurdles in converting to a marketing orientation:
organized resistance, slow learning, and fast forgetting.
Some company departments (often manufacturing, finance, and research and development)
believe a stronger marketing function threatens their power in the organization. Resistance
is especially strong in industries in which marketing is being introduced for the first time—
for instance, in law offices, colleges, deregulated industries, and government agencies. In
spite of the resistance, many companies manage to introduce some marketing thinking into
their organization. Over time, marketing emerges as the major function. Ultimately, the
customer becomes the controlling function, and with that view, marketing can emerge as
the integrative function within the organization.
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3.
a) Explain the meaning and objectives of distribution. 5
b) Describe the concepts of product levels. 5
Answer
3 a) All marketing activities which make the product accessible and available to target market
is distribution. In another words, various activities performed for supplying the products
to the target markets on the whole is distribution. Distribution creates time utility, place
utility, ownership utility of products. Management of product storing creates time utility
whereas exchange creates ownership utility. Management of good transport system
creates place utility. Distribution management satisfies customers’ wants by supplying
necessary goods to them and heightens their lifestyle.
Products have no utility at production place. Their utility increases immediately after
they have been taken to consumption places. For example, publishers have no use of
books, but when they reach among readers and students their utility increases. Similarly,
suppliers provide means of productions and work as bridge between producers and target
markets by supplying products. Distribution includes the tasks of distribution channels
and physical distribution.
The main objectives of distribution which discharges such important responsibility are
as follows:
1. Minimization of total cost
Producers produce various goods. A lot of expense is needed to distribute them. The
producers may give responsibility to any channel to distribute. Channel management
may deliver products to a certain place at minimum cost for distribution. While
distributing products in such way, many channels may be involved in it. The function
of distribution can be completed at minimum cost calculating the average labor of
persons or groups spent on it. So, distribution channel sets the objective to minimize
the total cost.
2. Making the goods available
Effective distribution channel makes arrangements for easy availability of any goods.
Any goods or services demanded by customers become available at any place and any
time. If goods are available when demanded, sale quantity of such goods increases on
the one hand and healthy competition with competitors can be easily faced on the
other. In this way, distribution channels always have the objective to maintain the
availability of the products regularly.
3. Regular supply of goods
Any business firm or producer can give the responsibility of distribution for channels.
Then the distribution channel manages regular supply of goods. In other words,
distribution channel delivers right product at the right time and right place to buyers.
So, all the customers of target market do not feel the lack of goods. Thus, distribution
channel sets objective to render crucial services of regular supply of goods.
4. Transfer of product ownership
The distribution function also fulfills the process of ownership transfer. For any
product documents/papers should also be given together with product by signing a
contract. Ownership of some other goods should be handed over, in presence of
government authority, with documents by completing every legal process and
requirement. Only after formally transferring ownership, the goods belong to the buyer
or customer. So, distribution channels also take responsibilities to transfer ownership
of goods.
5. Promotion of goods and services
Effective distribution channel also promotes goods or services. Distributor reaches
target market taking goods from production center. After reaching target market, the
distributor gets chances to show the goods to customers. Customers become very
happy to see and know about the goods. They also can ask about the product if
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anything unclear. They become acquainted with the product after the distributor gives
true information and answers to them about the products. In this way, distributor has
the target to promote the product or service of the producer.
3 b) Product can be seen from various angles. There are five levels of a product also known
as five product concepts, they are core product, basic product, expected product, actual
product and augmented product.
Potential product
Augmented product
Expected product
Basic product
Core
product
Levels of Product
1. Core product: Core product concept sees product as benefit it provides. Core product
is benefits or services consumers seek from the product. For example, lipstick as
beauty product, medicine as health product, book as education product, etc.
2. Actual (basic/formal) product: Actual product concept sees product as it is visible.
Elements of actual product could be materials, parts, features, design, quality, brand
name, packaging etc. For example, Revlon red lipstick, Honeytus Cough Syrup
medicine, Principles of Marketing book by Philip Kotler are products from actual
product concept.
3. Augmented products: Augmented products are additional services & benefits like
warranty/guaranty, use instruction, repair services, toll free number, delivery, free
items with the main bought product. For example, lip liner may be augmented when
lipstick is bought. Bag, information, return facility, discount, credit may be augmented
when medicine is bought. CD, book cover might be augmented when book is bought.
Each level adds more value to the product. Actual product must be according to core
(need) product.
4. Potential product concept: Potential product concept see product in future scenario
that is in the form of total future augmentation possible in the product. For example,
lipstick with torchlight attached, potential product could be e-book that you carry on
mobile not in your bag.
5. Expected product concept: Expected product is product that is expected by customer
(many times product does not meet the expectations and fails). Many customers expect
lipstick to be non-sticky to others but some lipstick stick. Medicine may not cure
disease in two days as we expected, book might not cover all syllabus as expected,
mobile phone may not pick the network as you expect. Product must meet the
customer expectations.
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Manufacturing product should not be just concerned with materials and parts. Product
should be manufactured on the foundation of core product (benefits desired by customer).
Product must augment some additional benefits to win the competition. Company must
always plan ahead (proactive marketing) for what customer may need in future. If you
ask what customers want and then start developing it, by the time you finish developing
product customer may have fulfilled his/her need from other company.

a) Green Marketing
b) Warehousing
c) Price determinants
d) Industrial Product
e) Distribution Channel
Answer
4 a) Green Marketing
Green marketing refers to the process of selling products and/or services based on their
environmental benefits. Such a product or service may be environmentally friendly in
itself or produced in an environmentally friendly way.
4 b) Warehousing
A warehouse is a fixed facility in which products are stored until demand arises for them
in the market. Warehousing is a major physical distribution function that affects the level
of customer service of an organization. The concept of warehousing has undergone
significant changes over the years. It is no more viewed as the traditional go-down where
products are stored for months. The distribution warehouses have replaced go-downs.
The distribution warehouse stores products for a minimum of time before they are
delivered to the target markets. The emphasis is on product movement rather than product
storage.
4 c) Price determinants
Factors that affect pricing are called price determinants. Price determinants are objectives
of the organization, marketing mix strategy, costs, product differentiation, business
efficiency, market demand of the product, economic condition, market competition,
government rules and regulations, market intermediaries, political condition, pressure
groups.
4 d) Industrial Product
Industrial products are those intended for use in making other products or operating a
business or institution. Thus, industrial products are differentiated from consumer
products based on their ultimate use. The types of Industrial goods are raw materials,
component parts, major equipment, accessory equipment, operating supplies, and
business services.
4 e) Distribution channel
Distribution channel is path made up of various persons and institutions (agent,
wholesaler (dealer, distributor), retailer) that help transfer ownership of product while
products being physically distributed. They help product movement, transfer ownership
of products and facilitating exchanges. Channel of distribution is also known as financial
function (due payments for product) or legal function (due transfer of ownership) of
marketing.
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Section -'A'
1. Read this case and analyze it in detail, using the questions given below. (4×5=20 marks)
Mr.Vaidhya is a 77-year-old man who was admitted to the ICU, 12 days ago after surgery for a
perforated ulcer. Within 48 hours of surgery, he developed some infection and remained ventilator
dependent. His surgical wound is not healing well. In the last several days, his creatinine has been
rising and urine output falling. The surgeon visits daily before 7 AM but has not spoken directly to
the family since day one, when he reported that the surgery went well. The admitting intensivist
(now off service) spoke briefly to the family – the patient’s wife of 60 years, and his adult son - on
Day 3 of the ICU stay about the patient’s condition. A nephrologist who saw the patient yesterday
told the wife that he had been consulted to provide dialysis. At today’s ICU rounds, the current
ICU attending predicted that the patient may die in the hospital, but this was not discussed with the
family. The wife has asked several times for reassurance that her husband will ultimately be able
to return home with her. The son, who often accompanies his mother during visiting hours, seems
angry with the physician’s treatment to his father. An ICU family meeting attended by the ICU
attending physician, the patient’s designated nurse, the wife and the son, is held to discuss goals
of the care. The family has been insisting that everything should be done.
Questions:
a) Discuss the case from the viewpoint of communication. What do you think the problem is?
b) If you were asked to convene the meeting with the family, what would be your communication
strategies? What would you suggest to the ICU people and to the family? Discuss.
c) Do you think the way the family members are reacting is ok? What is your view on this?
d) Most of the people worldwide are not happy with the way doctors and nurses communicate to
the patients and their relatives. What may be the reasons behind that?
Answer:
a) Family members of the patient have every right to get information on timely basis. Hospital staff
should take a great care in breaking the news. They must be informed about all possibilities and
challenges regarding the patients’ health. But in this case, the doctors are not speaking directly to
the family members. Family members are getting few information from junior staff, sometimes
through informal gossips. It is very painful for the patients’ family members. In such a critical
situation, hospitals must develop a very strategic communication strategy that must be highly
sensible to the concerned party.
b) If I were asked to convene a meeting with the family, first I would collect the information about
the patient thoroughly. I would assess the situation and discuss with doctors and nurses about all
the possibilities to help the patient to recover. If the health of the patient is critical and it seems
almost impossible to save the patient, its our ethical responsibility to inform the caretakers honestly
on time. Hence, it is objectionable to break the news of the deteriorating condition of the patient’s
health that most probably leads to the death in the last hour after many day’s treatment. In fact, they
should have been updated from time to time from the very first day. In this present case, hospital
has already made a mistake.
At this critical juncture, I would have arranged a meeting with the patients’ family members, along
with the doctors and nurses involved in treating the patient. Taking a great care of the message
sensitivity, I would have informed the family members about the severity of the patient’s health. I
would have requested them to accept the fate, telling them that life and death are not always at
doctors’ command.
c) Yes, I think the way they are reacting is ok because they are the victims now. The Hospital should
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have provided them necessary information regarding the health status of the patient on a timely
basis.
They have been told, after many days, that they will probably lose their family member. They have
not got even that information from the doctors who had been treating the patient. They are at a great
distress. They are asking for the right information about the patient and they have every right to ask
for that information.
d) Yes, it is true that in most of the cases the hospital staff don’t communicate responsibly and honestly
to the caretakers about the patient’s condition. The hospital staff mostly seen apathetic to the
patients and their family members.
It has been already proven by many researches that if doctors and the hospital staff communicate
with the patients and the concerned family properly, the patient’s health improves much faster.
Doctors and nurses need proper communication training worldwide. Only medicines do not heal.
Healing is much more than just recovering from the disease and in this healing process,
communication may act like a soothing balm.
2. What importance does ethical communication have in business? Discuss some of the ways of
maintaining ethical standards in business. 10 marks
Answer:
As a business communicator, you should understand basic ethical principles so that you can make
logical decisions when faced with dilemmas in the workplace. Professionals in any field must deal
with moral dilemmas on the job. However, just being a moral person and having sound personal
ethics may not be sufficient to handle the ethical issues that you may face in the workplace. On the
job you will face many dilemmas, and you will want to react ethically.
Taking ethics into consideration can be painful in the short term. But in the long term ethical
behavior makes sense and pays off. Dealing honestly with colleagues and customers develops trust
and builds stronger relationships. Many businesses today recognize that ethical practices make
good business sense. Ethical companies endure less litigation, less resentment, and less government
regulation. The following guidelines can help you set specific ethical goals and maintain a high
ethical standard.
Abiding by the Law. Know the laws in your field and follow them. Particularly important for
business communicators are issues of copyright law. Don't assume that Internet items are in the
"public domain" and free to be used. Internet items are also covered by copyright laws.
Telling the Truth. Ethical business communicators do not intentionally make statements that are
untrue or deceptive. We become aware of dishonesty in business when violators break laws, notably
in advertising, packaging, and marketing. Half-truths, exaggerations, and deceptions constitute
unethical communication. But conflicting loyalties in the workplace sometimes blur the line
between right and wrong.
Labeling Opinions. Sensitive communicators know the difference between facts and opinions.
Facts are verifiable and often are quantifiable; opinions are beliefs held with confidence but without
substantiation. Stating opinions as if they were facts is unethical.
Being Objective. Ethical business communicators recognize their own biases and strive to keep
them from distorting a message. Honest reporting means presenting the whole picture and relating
all facts fairly.
Using Inclusive Language. Strive to use language that includes rather than excludes. Do not use
expressions that discriminate against individuals or groups on the basis of their gender, ethnicity,
disability, or age. Language is discriminatory when it stereotypes, insults, or excludes people.
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Giving Credit. Ethical communicators give credit for ideas by (1) referring to originators names
within the text, (2) using quotation marks, and (3) documenting sources with endnotes, footnotes,
or internal references. In school or on the job, stealing ideas or words from others is unethical.
3. Answer these questions. (2×5=10 marks)
a) What does the term ‘circular’ mean? How is a circular significant for an effective business
meeting?
b) Mention some of the ways of improving nonverbal communication skills.
Answer:
a) A circular refers to a formal note sent to the participants of a meeting informing and inviting them
about the meeting. It is a form of a letter or an e-mail which is usually written by the secretary of
the board or committee. It involves details of the meeting.
Business meetings are organized in the organizations to make the discussions and decisions
regarding different issues and matters. The success of any meeting may depend on essential
preparatory work. Part of this work involves circulating the notice and agenda about the meeting
to all the members or participants of the meeting. The agenda are also required in many contexts
of effective business meetings to be discussed and negotiated among the members. Such agenda
are sent to the members along with the circulars focusing on date, time, venue, etc. of the meeting.
If such circulars are not sent to the participants of a meeting, that meeting may not be effective at
all. The members can be prepared themselves about the topic of discussion, and they can contribute
more effectively if they get circular in time. They can also become punctual at the meeting place
because of the circular sent to them prior to the meeting.
b) Communicators may improve their nonverbal communication skills by maintaining eye contact,
looking alert, eliminating physical barriers that separate them from their listeners, and improving
their comprehension of nonverbal signals. Besides, following specific activities might prove
valuable in improving nonverbal skill.
 Self-monitor your actions and tones. When you start to notice a habits or oddities that occur
while you speak, write them down. This will help correct yourself when it comes down to it.
 Be aware of how people see you. We all see ourselves one way, but others can see us in a
different manner. Notice how people react to you while you speak.
 Ask friends to help you determine where you're going wrong. They will know if you are
sending any conflicting signals. If you feel comfortable, ask your colleagues as well. They see
another side of you that your friends normally don't.
 Videotape yourself while you speak. Make sure you are able to see at least your upper half.
Notice any gestures, facial expressions, or tones that can conflict with the message you are
giving with your words.
 Adapt with the roles you have in your life. You act differently as a student and as a mother,
for example. Be sure that your words, tones, actions, and gestures correlate with the
environment and role that you are in at that time.
4. Write short notes on: (4×2.5=10 marks)
a) Writing routine business request
b) Negotiation in business communication
c) Corporate social responsibility (CSR)
d) Letter of authorization in a report
Answer:
a) Writing routine business request
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When writing a routine request, open by stating specific request. Use the body to justify request and
explain its importance. Close routine requests by asking for specific action (including a deadline, if
appropriate) and expressing goodwill. A courteous close contains three important elements: (1) a
specific request, (2) information about how you can be reached (if it isn’t obvious), and (3) an
expression of appreciation or goodwill.
b) Negotiation is one of the very useful and effective processes of conflict resolution. It helps people
to eliminate the basis for conflicts through bilateral discussions, dialogues and compromise. It is
the most preliminary stage in the process for the conflict resolution. The two conflicting parties are
required to go through the situation with certain critical reflections, and they are kept together face-
to-face with a kind of realization about the situation. They are ready to reach the solution and get
involved in the negotiation process. They have open discussion with the motive of negotiation.
They try to make ‘give and take’ results on one hand, and on the other they try to compromise upon
certain bottom line of their views and positions. They reach the ‘win-win’ situation. The role of the
third party is quite subtle unlike in the processes such as mediation and arbitration.
c) Corporate social responsibility (CSR) is an essential component of an ethical and responsible
business organization. It is a business movement in which commercial organizations address the
social issues identified through different sources, and run the programs for social welfare. They
invest certain amount of money so that their business as well as the society where they have to
survive can grow together. Different infrastructural activities, educational programs, public health
programs, sports events etc. are conducted by the business organizations as their responsibility to
the society.
d) Generally, we don’t write a report to store in our own drawer. Unless the report is self-initiated,
someone has asked us to produce a report. Hence, our opening words in the transmittal document
refer to that request. We must remember that much time may have passed since the initial request
and that even the requester may have forgotten the details. Some report writers include in the
appendix the actual report request as supplementary information. Including all these information,
we write a letter of authorization and place it in the prefatory part of a report.
Section -'B'
5. Read the following case carefully and answer the questions given below: (4×5=20 marks)
Traders of readymade garments (RMG) imported goods worth Rs 4 billion targeting the summer
season this year. However, the imported goods are currently stuck in their godowns, as traders are
unable to sell the clothes due to the lockdown. The prohibitory order aimed at controlling the
spread of coronavirus has severely affected the sales of readymade garments.
Meanwhile, the traders are frustrated as the second wave of Covid-19, and the subsequent
lockdown has affected their business in the peak season, forcing them to hold the imported goods
in their godowns. April is the peak time for selling RMGs. Last year too, readymade garments
worth Rs 3 to 4 billion were stuck in the warehouses of traders, as the summer season was about
to start.
Dil Sundar Shrestha, a central member of the Federation of Nepalese Chambers of Commerce and
Industry, said that the traders are witnessing the same situation this year. "Last year's stock of
clothes could not be sold. This year too, we have a stock of goods worth Rs 4 billion," he said.
Rajeshman Shrestha, a retailer of readymade garments in Asan, had imported goods worth around
Rs 1.5 million for the summer season as the coronavirus pandemic seemed to be declining. But he
has not been able to sell clothes more than Rs 500,000.
"I don't know how long the lockdown will last. So I am worried that the investment in the business
will sink,” he said. On the one hand, bank loans, interest, rental charge are quite high. As the
lockdown continues, the readymade garments stuck in traders' godowns cannot be sold in the
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winter. Therefore, traders say that the current investment is unlikely to return until the summer of
next year.
Nepali traders import readymade garments worth Rs 30-40 billion from neighboring India and
China every year during summer, winter, and during the Dashain-Tihar festivals. (Business Age,
2021)
a) Discuss the general marketing environment.
b) Explain why buyers’ behaviour needs to be understood.
c) What could be the role of MIS during COVID-19 in Nepalese business?
d) How do you build relationship with customer?
Answer:
a) To make the right strategy to face COVID-19 crisis environmental analysis must be done carefully.
Environment can be divided into Internal environment (company environment), external
environment (task environment and general environment). Internal environment consist of factors
inside the company, those are mission, vision, policies, financial resources, human resources,
physical resource, information resource, organizational culture, organizational structure, company
departments like management (decisions, strategies, plans, policies, mission of the company),
financing (funding marketing plan), research development (for safe & attractive product),
purchasing, operations (producing & distributing), accounting (measuring revenue & costs).
External factor consists of task environment and general environment. Task environment consists
of factors that affect the daily operations of the company. Task environment consists of suppliers,
facilitating institutions (research agency, consultant agency, advertising agency, transportation
company, bank, insurance company, security agency for the company), wholesales, retailer,
dealers, distributors, agents, customers, competitors, publics (general public, local public, citizen
groups, minority groups, employees, media, related government officials). Every company have its
own unique task environment therefore task environment is also known as specific (not general)
environment. General environment is big environmental factors which affect every company of
that state. General environmental factors are political environment, legal environment, economic
environment, natural environment, global environment, social environment, demographic
environment, cultural environment, technological environment.
Kotler (2006) has divided environment into macro environment and micro environment. Kotler has
put internal environment and task environment into micro environment. He has explained macro
environment as general environment. Micro factors are small and controllable to an extent but
macro factors are big and beyond the control of the company. Company must adopt into macro
environment as it changes. Very few companies are successful in manipulating macro factors
through proactive marketing. Micro environmental factors analysis help realise strengths and
weakness of the company. Macro environmental factors analysis help realize opportunities and
treats to the company.
b) Due to COVID crisis there is change in behaviour of buyers. Buyers’ behaviour must be understood
to fulfil following objectives.
1. Satisfy customer needs: Consumer needs satisfaction is the importance of understanding buyer
behaviour. According to the behaviour of consumers/buyers, organization should offer a
marketing mix in the organizations that satisfy the needs of the target consumers/buyers.
Consumer tastes and preferences are ever changing. Study of consumers' behavior gives the
needy information regarding color, design, size etc. which they want.
2. Help development of marketing mix: Development of marketing mix strategy is another
importance of understanding buyer behaviour. Consumers' response helps to develop
marketing mix strategy as per the changing environment. Understanding of buyers/consumers
behaviour is the key factor that influences the organizations so that they can develop
appropriate marketing mix in the organizations.
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3. Identify new market opportunities: By understanding buyers/consumers behaviour, the
marketers can find out the unsatisfied needs which motivate them to produce the products
accordingly. This unsatisfied needs helps to locate new market opportunities which are
importance of understanding buyers' behaviour in the organizations.
4. Help target market selection: Behaviour is an important variable for market segmentation.
By understanding buyers/consumers behaviour, organizations can effectively segment the
market. For effective market segmentation and target marketing, it is essential to have an
understanding of consumers and their behavior.
5. Help efficient use of resource: By understanding buyers/consumers behaviour, organization
can make efficient use of marketing resources. They can focus on their marketing efforts in
meaningful group of marketing. It is useful in developing ways for the more efficient utilization
of resources of marketing. It also helps in solving marketing management problems in more
effective way.
6. Realize what positioning will be appealing to target customer. After studying buyers
behavior marketer can learn what motivate customers to buy the product. When buyers
behavior is analyzed marketer will come to know some are motivated to buy because of price,
some are motivated to buy because of safety, some are motivated to buy because of after sales
services, some are motivated to buy because of hygiene, some are motivated to buy because of
made in Nepal. What motivate the target group to buy the product same should be put in
advertisement message to appeal that target group.
c) During COVID company must make special strategies. To make plan according to situation and
implement it successfully marketing information system must be effective. Because of following
reasons, market information is important to the company.
1. For situation analysis: Situation analysis need information on environment, market
characteristics, consumer behaviour. Information is needed to determine SWOT (Strengths,
Weaknesses, Opportunities, and Threats). Every decision is based on situation analysis.
2. For planning: Planning is determining right future course. Information is must in evaluating
alternative courses. Strategy is long term plan to achieve the objective. Strategy is set based on
situation, competitors' positions. Market segmentation, targeting and product positioning is
major strategies in marketing. The marketers cannot make the planning without information.
For planning, the marketers should collect the various information from different sources. This
information helps to know the business environment, marketing opportunities and threats, and
position of competitors. Information help in planning, help in SWOT analysis, to target the
right group, to position the product in customer mind accordingly with customer motives of
buying. To set the right marketing programs (7Ps) up-to-date information are required.
4. For implementation: For implementation company must create departments, assign task to
people, allocate resources, and supervise/monitor. To analyze and select right person, right
time/schedule, right place, right procedures, right controlling tool information are needed.
Information help in implementation by help know the potentials of the people then chose right
person for the job, decide the appropriate time, right procedures, understand competitors’
moves and help implement marketing mix.
5. For control: Controlling is comparing plan to performance and realizing the deviation and
giving treatment to make sure performance match the plan. Controlling decisions are made
based on marketing audit, market share analysis, marketing cost analysis, credit analysis, price
cuts analysis, budgetary analysis, ratio analysis, contribution margin analysis like marketing
information inputs and warning signals. Information system provide the reports on company's
performance and company's predetermined plans, this help measure differences among plan
and performance so company can take the right steps for control. MIS facilitates continuous
monitoring of marketing performance of the organizations to match the set plan. Right
treatment/remedy for deviation from plan to performance is also identified by information
analysis.
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d) Relationship marketing will help retain present customers and spread good word of mouth which
help grow the business. Social bonding in relationship marketing will keep the present customers
in regular contact even during crisis like COVID-19 which will maintain the business. Relationship
development strategies must go sequentially as following.
1. Targeting the right customers: Service companies today are beginning to recognize, that not
all customers are worth attracting and keeping. Rather than marketing to all customers in a
similar manner, the company now puts its efforts into the good customers.
2. Create Core Service Provision: Before developing the relationship company must make sure
that company is providing core services and benefits customers are seeking.
3. Create Switching Barriers (customer inertia, switching costs): Company must create the
environment so that customer can take unique benefits so customer does not like to switch to
the other company. The way of life, the habits, friends he has to change in switching the
company is the big cost for the customer that customer is unable to bear. Setup costs, search
cost, learning cost, contractual cost (fines customer has to bear for terminating the service
receiving contract before maturity) etc. all create the barriers for customer to switch to the other
company.
4. Develop sequential Relationship bonds. Starting with financial bonds, then social bond, then
customization bond, finally all developing into structural bond. Bonding starts with financial
incentives to customers. Secondly, socializing with customers will bond customers emotionally
with the seller. Thirdly, delivering customized goods and services will oblige customers to
maintain their patronage toward the company. Changing the structure of the company to make
customization permanent will create permanent bond. In this way customer evolve from
suspect to prospect to customer to client to advocate to finally customer becomes a partner to
the company through relationship marketing.
Relationship marketing will help maintain business even in crisis like COVID-19.
6. What is marketing? Describe the holistic marketing concept in your own words. (3+7=10 marks)
Answer:
Most people think that marketing is only about the advertising and selling of goods and services.
Advertising and selling, however, are just two of the many marketing activities. In other words, selling
and advertising are only the tip of the marketing iceberg. Although they are important, they are only
two of many marketing functions and are only two of many marketing functions and are often not the
most important ones.
Today, marketing must be understood not in the old sense of making a sale- “telling and selling”- but
in the new sense of satisfying customer needs. If a marketer does good job of understanding customer
needs; develops products that provide superior value; and prices, distributes and promotes them
effectively, these products will sell very easily. Thus selling and advertising are only part of a marketing
mix.
In general, marketing activities are all those all those associated with identifying the particular wants
and needs of a target market of customers, and then going about satisfying those customers better than
the competitors. This involves doing marketing research on customers, analyzing their needs and then
making strategic decisions about product design, pricing, promotion, and distribution. Thus, marketing
deals with identifying and meeting human and social needs.
According to Philip Kotler & Kevin Lane Keller, “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.”
From the above definition what we can say is customers’ wants must be recognized and satisfied. Entire
system of business activities should be customer oriented. Marketing should start with an idea about a
want-satisfying product and should not end until the customers’ wants are completely satisfied, which
may be some time after the exchange is made.
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Thus, in conclusion, marketing is meeting needs profitably.
The Holistic Marketing Concept
A whole set of forces that appeared in the last decade call for new marketing and business practices.
Companies have new capabilities that can transform the way they have been doing marketing; they also
need a more complete, cohesive approach that goes beyond traditional applications of the marketing
concept.
The holistic marketing concept is based on the development, design, and implementation of marketing
programs, processes, and activities that recognizes their breadth and interdependencies. Holistic
Marketing recognizes that “everything matters” with marketing – that a broad, integrated perspective
is often necessary. Four components of holistic marketing are relationship marketing, integrated
marketing, internal marketing and social responsibility marketing.
Holistic marketing is thus an approach to marketing that attempts to recognize and reconcile the scope
and complexities of marketing activities. This concept includes relationship marketing, integrated
marketing, internal marketing and social responsibility marketing.
7.
a) What are the components of marketing information system? Explain. 5 marks
b) Describe the reasons for developing new product in Nepal. 5 marks
Answer:
a) Components of marketing information system are: Internal record system, marketing intelligence,
marketing research and marketing decision support system which are explained as follows:
i. Internal Record System
Internal record system collects various types of scattered data which are located inside the
company. The heart of the internal record system is the order-to-payment cycle.
Marketing managers rely on data from internal reports about orders, sales, prices, costs,
inventory levels, receivables, payables and so on. Today many companies organize information
in databases- customer databases, product databases, salesperson databases and so forth- and
then combine data from the different databases. Companies warehouse these data and make
them easily accessible to decision makers to better plan, target, and track marketing programs.
ii. Marketing Intelligence System
Whereas the internal records system supplies results data, the marketing intelligence system
supplies happenings data.
Marketing intelligence is systematic collection and analysis of publicly available information
about competitors and developments in the marketing environment. It is a set of procedures
and sources managers use to obtain everyday information about developments in the marketing
environment.
Marketing managers collect marketing intelligence by reading books, newspapers, and trade
publications, talking to customers, suppliers, and distributors, checking internet sources and
meeting with other company managers.
iii. Marketing Decision Support System
Marketing decision support system (MDSS) is a coordinated collection of data, systems, tools,
and techniques with supporting software and hardware by which and organization gathers and
interprets information from business and the environment and turns it into a basis for marketing
action. It is a procedure that allows a manager to interact with data and methods of analysis to
gather, analyze, and interpret information.
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A marketing decision support system may include statistical tools, mathematical tools as well
as financial and managerial tool and models.
iv. Marketing Research
Marketing managers often commission formal marketing studies of specific problems and
opportunities, such as a market survey, a product-preference test, a sales forecast by region or
an advertising evaluation. Marketing research is the systematic design, collection, analysis and
reporting of data and findings that are relevant to a specific marketing situation facing the
company.
A company can obtain marketing research in a number of ways. Most large companies have
their own marketing research departments. Some small companies can hire the services of a
marketing research firm or conduct research in creative and affordable ways. They can engage
students or professors to design and carry out projects, they can use the Internet, and they can
visit their competitors.
b) Reasons for developing new products are as follows:
1. Technology innovations: New technological developments make exiting products obsolete.
Marketing must innovate products to replace old technology with new technology.
2. Market leadership: Organizations develop and introduce innovative products to maintain
market leadership. They invest significant amount of money for research and development.
3. Competitive response: This is the age of intense competition. Marketing must anticipate the
innovative actions of its competitors. Product innovation is needed to gain competitive
advantage by being First in the market.
4. Changing customer preferences: This is mainly due to changing needs, tastes and preferences
of customers. Product innovations are needed to meet changing customer preferences.
5. Environment adoption: Environmental forces related to politics, law, economics, culture and
society keep on changing. Product innovations are needed to adapt to environment changes.
6. Failure of new products: Marketing is faced with high failure rate of new products. Products
innovations are needed to stay in the market.
8. Write short notes on: (5×2=10 marks)
a) Needs
b) Personality
c) Marketing Environment
d) Market Segmentation
e) Public relations
Answer:
a) A need is a basic requirement that an individual wishes to satisfy. The most basic concept
underlying marketing is that of human needs. Human needs are state of felt deprivation. They
include basic physical needs for food, clothing, warmth, and safety; social needs for belonging and
affection; and individual needs for knowledge and self-expression. These needs were not invented
by marketers; they are a basic part of the human makeup.
b) One of the psychological determinants of consumer buying behaviour is personality refers to the
unique psychological characteristics that lead to relatively consistent and lasting responses to one’s
own environment. Personality is usually described in terms of traits such as self-confidence,
dominance, sociability, autonomy, defensiveness, adaptability, and aggressiveness
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c) Marketing environment can be broadly classified into two groups – micro environment and macro
environment. Micro environment consists of forces that are very close to the company. The macro
environment consists of the larger forces that affect the elements of micro environment.
d) Market segmentation is the process of defining and subdividing a large homogenous market into
clearly identifiable segments having similar needs, wants, or demand characteristics. Its objective
is to design a marketing mix that precisely matches the expectations of customers in the targeted
segment.
e) Public relations is creating favourable attitude of public toward company. Tools of Public Relations
are media relations, group relations, lobbying, blogging, social media marketing, sponsorship of
social events, corporate social responsibility, information updating, and corporate advertising.
Page 43 of 61
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Paper-6 Part A: Business Communication

Section -'A'
1. Read the following case and answer the questions that follow. (4×5=20 marks)
The investors of a newly established hotel in a busy city in Nepal are worried about the
recent business condition of their hotel. After the first anniversary of the hotel, they have
organized a business meeting and arrived at the conclusion that the manager is not
functioning effectively enough to mobilize the staff and because of various unknown reasons
the international guests are not much happy in the hotel. They have recently talked to the
manager about the exact situation of the hotel. The manager argues that the hotel is not in
that condition as the investors are thinking. It’s growing gradually and naturally. The people
are learning about it nationally and internationally. But, he presents one problem regarding
the senior staff of the hotel who frequently show conflicts among each other due to their
nationality, culture, religion, background, etc. He stresses that workforce diversity must be
managed and utilized for business growth with some effective measures.
The investors have decided to form a research team to study the situation and write an
effective analytical report on the business issues of the hotel. Specifically, they want to learn
about the satisfaction level of their customers/guests regarding the behaviour of their staff,
facilities of the hotel, quality of food, etc. They also want to know some of the effective ways
of promoting their business in the international level. Finally, they need some useful
recommendations about the settlement of workforce diversity. To carry out these activities
effectively, they are looking for a good team leader who has wide range of experience in this
field. They have decided to publish a vacancy announcement in a national daily newspaper.
Questions:
a) Suppose you are Ananda Singh, an expert in business research and communication.
You find yourself a suitable personality for the responsibility mentioned above. Write
an e-mail to the investors showing your interest and strength for the advertised job.
b) As the team leader of the research team, frame at least five specific objectives of the
research report that you are going to submit to the investors of the hotel.
c) How are data collected and analyzed for this research report? Discuss procedures
and tools.
d) What do you think are the possible techniques of overcoming the problems caused by
workforce diversity in the business organizations?
Answers:
(a)
From: discover.ananda26@gmail.com
To: hotelhimalaya@yahoo.com
subject: letter of interest to the advertised duty of research
Date: June 12, 2020
Dear sir,
I came to learn from your website that your hotel has been searching for a dynamic
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resource person as a researcher. Since my expertise is concerned with what you are
looking for at the moment, I am convinced that I am able to find out the effective
conclusion of the problems in your business. I am interested in doing research on
the issues in the business relations, communication and leadership. I had done
exactly same nature of job during my research of the MBA program.
I will submit my complete application and resume when you receive and positively
respond to this e-mail. My cell number is 98510xxxxx.
Regards,
Ananda Singh
(b) The objectives of the research report:

 To find out the satisfaction level and attitudes of the customers regarding the
behaviour of the staff;
 To explore the customers’ attitudes about the overall facilities and services
provided by the hotel;
 To point out specific perceptions of the customers about the quality of food in the
hotel;
 To identify specific strategies for promoting the business in the international
level;
 To suggest some effective measures for the settlement of the issues related with
workforce diversity.
(c) Data are the systematically presented information. They are collected from the
respondents and field study. There are certain procedures and tools for data
collection. In the research as in this case, the survey tools such as questionnaires, in-
depth interviews, focused group discussions, etc. are more effective than experiments
and observations. When the data are collected by using these tools, they are organized
and analysed by using various tables, graphs, statistical tools such as percentage,
mean, standard deviation, etc. The irrelevant ideas/options are avoided from analysis.
(d) In multinational companies, people from different backgrounds might have different
ways of perceiving, understanding and behaving. Such diversity may invite many
problems including conflicts and misunderstandings. Proper communication can
minimize the potential drawbacks of workforce diversity. Some of the possible
techniques of overcoming the problems caused by workforce diversity in the business
organizations are:
 Promoting cross-cultural relationship between the people of diverse cultures;
 Changing traditional cultural perceptions with the help of frequent meetings and
training programs.
 Allowing different languages for official work. Cultures of even minorities need to
be acknowledged.
 Conducting seminars, workshops, etc. to familiarize people with each other.
 Building cohesive multi-cultural work teams.
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 Creating a corporate culture that can accommodate diversity to maximize the
potential of the workforce.
2. How does effective communication enable you to achieve success in your professional as
well as personal level? 10 marks
Answer:
One of the important steps of my career growth is improving communication skill.
Obviously, business communication skills cover many facets, such as verbal (talking and
listening), reading, and writing that enable me to achieve success in my personal as well as
professional career. This is determined by the way I use verbal communication which
includes many features such as: effective meeting skills, the ability to influence and persuade
others, motivating others, questioning, providing feedback to others, seeking out and
listening to feedback about oneself, seeking out and processing information, and leadership
skills.
Thus, communication at work as a professional is important:
 to understand the importance of communication skills in relation to career success and to
enable an individual to explain the need of thinking critically,
 to inculcate the habit of practical, factual, clear, concise and persuasive communication
skills,
 to recognize the significant trends in today’s workplace and know how these trends
increase the need of excellent communication skills,
 to analyze ethics in the workplace and apply the tools for doing the right communication
practices.
In addition to the professional benefits, effective skills help me in numerous other ways
which are listed below:
 It enables me to make closer ties with important business communities in the market;
 It offers chances to influence conversations, perceptions and business trends leading to
increased productivity and faster problem solving;
 It makes me aware of the potential problems related to costs and other critical safety
issues;
 It qualifies me to compose clearer and more persuasive marketing messages and business
policies;
 It assists me to make stronger decision based on timely and reliable information.
Since business communication is transactional, it involves a give-and-take relationship
between the sender and the receiver(s) in order to establish a common understanding.
Moreover, Performance objectives, job instructions, financial data, customer orders,
inventory data, production problems and solutions, and employee production reports
illustrate the range of internal communication exchanged in the course of doing business.
In conclusion, organizations accomplish long-range planning and strategic decision making
by relying on research, reports proposals, conferences, evaluations, and projections.
Therefore, effective communication skills are critical in my career and for the company I will
work.
a) What is conflict resolution? Mention any seven steps to resolve conflict.
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b) Write a resignation letter to submit to the ABC insurance company where you have been
working for more than three years.
Answer:
a) Conflict, arguments, and change are natural parts of our lives, as well as the lives of every
agency, organization, and nation. Conflict resolution is a way for two or more parties to find
a peaceful solution to a disagreement among them. The disagreement may be personal,
financial, political, or emotional. When a dispute arises, often the best course of action is
negotiation to resolve the disagreement. The goals of negotiation are- to produce a solution
that all parties can agree to, to work as quickly as possible to find this solution, and to
improve the relationship between the groups in conflict.
Conflict resolution through negotiation can be good for all parties involved. Often, each side
will get more by participating in negotiations than they would by walking away, and it can be
a way for your group to get resources that might otherwise be out of reach. The seven steps
to successfully resolve conflict are:
a. Understand the conflict
b. Communicate with the opposition
c. Brainstorm possible resolutions
d. Choose the best resolution
e. Use a third party mediator
f. Explore alternatives
g. Cope with stressful situations and pressure tactics
b)
Shahid Marga-83
Baneshwar, Kathmandu
July 23, 2020
Mr Phul Prashad Bantawa

Human Resource Manager
ABC Insurance Company
Babar Mahal, Kathmandu
Dear Sir:
My sincere thanks to you and to all the other ABC insurance employees for helping me
learn so much about serving the public these past three years. You have given me untold
help and encouragement.
You may recall that when you first interviewed me, my goal was to become a customer
relations supervisor. Because that opportunity has been offered to me by another
organization, I am submitting my resignation. I will miss my friends and colleagues at
ABC insurance, but I want to take advantage of this opportunity.
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I would like to terminate my work here two weeks from today (July 23) but can arrange
to work an additional week if you want me to train a replacement.
My sincere thanks and best wishes to all of you.
Best Regards,
Lila Dhar Poudel

a) Sensory Limitations
b) Listening versus hearing
c) Abstract of the report
d) Overcoming intercultural barriers in an organization
Answer:
a) Sensory Limitations
Human sensory receptors have certain limitations. The number and types of signs we can
detect from the real world are limited by our sensory abilities. We are not capable of
detecting all the signs that we know exist in the real world. For example, our eyes can
detect only a small part of the total spectrum of wavelengths. We can see only a fraction
of the distance a hawk can see. Our ears can pick up only a narrow band of the vast range
of air vibrations, and people's ability to pick up sounds within these ranges varies.
Clearly, our senses are limited and can detect only a small portion of the reality
surrounding us.
b) Listening versus hearing
Hearing is an accidental and automatic brain response to sound that requires no effort.
We are surrounded by sounds most of the time. For example, we are accustomed to the
sounds of airplanes, thunder, and so on. We hear those sounds and, unless we have a
reason to do otherwise, we train ourselves to ignore them.
Listening, on the other hand, is purposeful and focused rather than accidental. As a result,
it requires motivation and effort. Listening, at its best, is active, focused, concentrated
attention for the purpose of understanding the meanings expressed by a speaker. We do
not always listen at our best.
c) Abstract of the report
Abstract is also called the Summary or Executive Summary. This is the ‘shop window’
for your report. It is the first (and sometimes the only) section to be read and should be
the last to be written. It should enable the reader to make an informed decision about
whether they want to read the whole report. The length will depend on the extent of the
work reported but it is usually a paragraph or two and always less than a page. A good
way to write an abstract is to think of it as a series of brief answers to the following
questions.
 What is the purpose of the work?
 What methods did you use for your research?
 What were the main findings and conclusions reached as a result of your
research?
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d) Overcoming intercultural barriers in an organization
Each of the business professionals must be a mindful communicator, paying attention to
the meaning that people from different cultures will attach to behavior in particular
contexts. The most practical way forward is for organizations to take account of the
exiting research and adopt a systemic problem-solving approach. The solutions to the
problem lie in the following areas.
 Awareness of the problem
 Realistic evaluation of the problem
 Developing positive and constructive attitudes
 Developing a corporate culture
 Managing cultural diversity
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Paper-6 Part B: Marketing

Section -'B'
Cement Industry and Market
The use of cement in Nepal as building material started from the beginning of early 1950.
Gradually, around 1965, the supply of cement was diversified in the form of foreign aid
programs. However, the import of cement in the commercial-scale began only in early 1970.
In 2003, 80 percent of domestic demand was fulfilled by imported cement from Indian brands
like JP and Setna cement. In the meantime, Hetauda and Udayapur cement factories were
popular in Nepal as domestic brands. These two factories were developed by the Government
of Nepal as public enterprises and are still in operation. Still, customers' first preference
goes to Udayapur and Hetauda Cement despite the emergence of new brands.
Since 2001-2005, Indian brands, Setna and JP cement Launched aggressive promotion
Campaigns. Setna cement conducted a strong Integrated Marketing Communication (IMC)
Campaign through different Media in Nepal. In the meantime, the Government of Nepal
decided to provide various incentives for domestic industries; like tax rebate and flexible
interest policies and support in infrastructural development. As a result, Investments in
cement industries increased rapidly. As of now, more than 3 dozen cement industries are
operating within Nepal. On one hand, due to adequate domestic production, imported brands
have become expensive and as a result their demand has also decreased. On the other hand,
Domestic Brands like Maruti and Arghakhanchi are more focused on quality and have
carried out massive promotion campaigns. Due to aggressive promotion and wide
distribution its market share has risen up to 25 % of the total market.
Durability, strength and power are some of the propositions on which cement companies
should position themselves. Hongshi- Shivam Cement has started its new plant near
Damkibass in Nawalparasi district. The joint venture between Nepal’s Shivam holdings and
Hong Kong’s Red Lion cement. The unit has a production capacity of 6000/day (120000
bags) making it the largest site in the country. Hongshi started an aggressive campaign for
promotional activity. The company applied integrated communication approach. It applied
all the marketing tools such as advertising, public relation, sales promotion, direct selling,
personal selling etc. But also overall market is not increased as expected might be due to a
lack of good market segmentation and brand positioning.
All market strategy is built on segmentation, targeting, and positioning. A company discovers
different needs and groups of consumers in the marketplace, targets those who can satisfy in
a superior way, and then positions its offerings so the target market recognizes its distinctive
offerings and images. Product differentiation is important to gain competitive advantages.
b) What are the elements of Integrated Marketing Communication System?
c) Why Segmentation, Targeting and Positioning are important in marketing?
d) Advise suitable marketing strategy for Hongshi Cement.
Answer:
a) The main issues of the case are as follows:
 Cement industries in Nepal
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 Commercial scale began after 1970.
 High demands for Hetauda and Udayapur cements
 Integrated Marketing Communication (IMC).
 The Government of Nepal decided to provide various incentives for domestic
industries.
 Domestic brands like Maruti and Argakhachi focused on quality.
 Massive promotion campaign
 Increase in Market share.
 Largest production from Hongshi cement.
 Market segmentation and positioning.
 Competition and product differentiation.
b) Integrated Marketing Communications (IMC) is a simple concept. It ensures that all
forms of communications and messages are carefully linked together. At its most basic
level, IMC means integrating all the promotional tools, so that they work together in
harmony. A promotional mix is an allocation of resources among five primary elements:
 Advertising.
 Public relations or publicity.
 Sales promotion.
 Direct marketing.
 Personal selling.
c) In marketing, segmenting, targeting and positioning (STP) is a broad framework that
summarizes and simplifies the process of market segmentation. The process
segmentation, targeting and positioning are parts of a chronological order for market
segmentation. The STP process is an important concept in the study and application of
marketing. The letters STP stand for segmentation, targeting, and positioning. The STP is
a fundamental concept in marketing success, because without it firms would have
relatively generic marketing strategies and would generally fail to compete effectively.
The steps in STP are commonly referred to as a process, with segmentation being
conducted first, then the selection of one or more target markets and then finally the
implementation of positioning. Although the letters STP represent three important
concepts in marketing, they are essentially one integrated process and work together to
deliver a top-level marketing strategy, which is then executed by the marketing mix.
d) In this scenario, price is considered as an important factor for choosing any brand. The
dominant foreign brand went out of the domestic market because it was expensive in
comparison to domestic brands. On the other hand, Hongshi Cement is one of the largest
cement industries in Nepal, so people were expecting that the company will provide its
product at lower price than other brands. But the company failed to meet people’s
expectations, as a result its sales did not increase according to the company’s
expectations. Therefore, the company needs to reduce its price by decreasing its cost of
production without compromising the quality to differentiate its product from other
brands. Beside these, the company also needs to improve its service and promotional
strategy.
The company may take following action,
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 The company should provide various ways to take orders from the customer i.e. it
should go on e-marketing.
 The company should provide quick and free home delivery service.
 The company needs to build a strong relationship with its marketing partner and
customer by providing credit facilities to the huge buyers.
 The company should segment its market according to different geographical location
and should change promotional policy according to the target market.
 The company should advertise its product by focusing on its eco-friendly strength and
should arrange different offers, as it is a new brand in the market.
 The company should also design an attractive brand mantra to be positioned in
consumers mind.
6. What are the challenges of modern marketing? 10 marks
Answer:
Marketing Challenges today are as follows:
 The new digital age: Use of computer, telecommunications, information, transportation,
live satellite broadcast. Internet created new way to learn about and track customers and
create products & distribute it. Video conferencing. Cell phones, fax machines, CD-ROM,
pen drive, blue tooth, interactive T.V., etc too available. E-Commerce made marketing
possible at home, can receive any goods in 24 hours a day 365 days a year. Use of
switches, electronics, voltages, language of zero and one is digital.
 The internet: Internet is web of networks. It allows any time anywhere connections to
information, entertainment and communication. It made close relation with customer &
partners. Internet users are in billions. Business to Business e – commence is higher than
consumer purchases. Social networking, consumer generated media are products of
internet.
 Rapid globalization: World becoming increasing smaller, marketers are now connected
globally with their customers. Every product is getting worldwide markets. Coca-Cola in
more than 200 countries, MTV in 140. e.g. Bill Blass, US fashion designer selects
materials from Australia, design prints in Italy, designs the dress in Texas and email
drawing to Hong Kong agent to place order in Chinese factory, finished dress will be air
freighted to New York for further distribution around the cities. Managers must think
globally about the product, competitors and opportunity now
 The call for more ethics and social responsibility: consumerism and environmentalism
movements are getting stronger demanding to take greater responsibility for social and
environmental impact of business companies, actions which is also forced by law. Forward
looking companies view socially responsible actions as an opportunity to do well by doing
good, serving long run interests of their customers and community and getting sympathy.
 The growth of not for profit marketing: like colleges, hospitals, museums, churches,
religious events, NGOS, INGOS are working to maintain their decreasing flocks.
Advertising for recruits in Indian army, energy conservation, discourage
smoking/excessive-drinking/drug use are other examples. Governments are nonprofit
institutions. US Government is 24th largest advertiser in USA. Nepal government is largest
advertiser in Nepal.
 Pandemic: Addressing health concern of consumers regarding COVID 19 is a new
challenge.
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7.
a) Describe the factors affecting consumer buying process. 5 marks
b) What are the marketing considerations for shopping products? Briefly explain. 5 marks
Answer:
a) Major factors that determine consumer buying process are as follows:
Cultural Factors
People living together in an order is known as society and their custom, tradition, wearing
and eating, festivals, religion, life styles norms, beliefs and values on the whole is called
culture. People may practice different-different culture. Therefore, the buying behavior of
person is affected by cultural
Social Factors
Society is network of people in a community. People living together in an order is known
as society. Person may belong to different society. In society there are various types of
groups, family, leaders, roles, functions, status. Belonging of person to these will influence
their buying behavior.
Association to reference group like inspirational (interested) or dissociative (not wanted),
reference group affects choice of product. Opinion leader of one’s group influence one’s
choice. Family (woman, children, family head) influence choice of the person. Consumer
must behave in a way that is appropriate to his/her Roles and status in the society.
Demographic factors
Demographic factors are the individual characteristics such as, sex, race, culture, family
size income, occupation, education, marital status etc. These factors can easily influence the
individual buyers to take the buying decisions. Age of the consumers, total population and
growth rate, sex or gender, proportion of rural V/S Urban population, occupation, literacy
rate and level of education, family size and family life cycle, etc. are the components of
demographic factors.
Economic Factors
The level of personal income affects in buying decision to consumer buying behavior. Total
income of other family members also affects in consumer buying decision. Expectation of
future income also makes spend more money for consumption. When the consumers
possess the adequate liquid assets, they are ready to spend more on the goods or services or
vice-versa.
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Psychological Factors
Psychological explains why a customer behaves as he does. The psychology of the
customers consists several factors which must be properly analyzed. Motivation shapes the
buying. Sigmund Fraud’s explains subconscious motivator, suppressed desires in past
motivate people. Abram Maslow’s explains hierarchical need (physical, safety, social,
prestige, self-actualization needs) is sequential motivators. Perception is judgment on
experiences of our senses. Perception guides the buying. Different people perceive same
thing differently. Learning is experience, it determines your future behaviors, your buying.
Beliefs shape your thoughts and actions and buying. Attitudes creates positive or negative
thoughts and feelings toward same object, to the product, which result in buying or not
buying.
b) Marketing considerations for shopping products are as follows:
 Image of the manufacturer and retailer are important.
 Packaging should be strong enough for handling.
 High price and high profit margin is essential. Price is flexible.
 Selective distribution through retail outlets, clustered in specific market areas.
 Point of purchase display is important.
 Personal selling is important because of the high involvement purchase.
 Post sale service, warranties and installation are important.
 Advertising is done by retailers at local level and supported by producers.
8. Write short notes on following: (5×2=10 marks)
a) Product
b) Marketing Information System
c) Market segmentation
d) Penetration pricing
e) Direct marketing
Answer:
a) According to Kotler (2006) pproduct is anything that can be offered to a market for
attention, acquisition, use or consumption that might satisfy a want or need. Product can
be goods, services, organization, persons, places, ideas, experience, and event.
b) Marketing information system consists of people, equipment and procedures to gather,
sort, analyze, evaluate, and distribute needed, timely, accurate and relevant information to
marketing decision makers. Components of marketing information system are: internal
record system, marketing intelligence system, decision support system and marketing
research.
c) Market segmentation is a process of dividing heterogeneous market into homogeneous
groups under certain criteria. It is customer oriented philosophy. Geographic,
demographic etc. variables are used for market segmentation. Each segment possesses
similar characteristics.
d) Market penetration means setting a low price to enter a competitive market. When market
is matured and competition is very high companies follow this strategy. When company
and product enters and creates solid base price will be increased to get due return.
e) Direct marketing is marketing without middlemen. It is direct persuasion by manufacturer
to specific customer to seek customer response. Direct marketing can use a variety of
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channels to reach the customer such as: door to door selling, direct mail, catalogue
marketing, telemarketing, TV shop, Kiosk marketing, internet marketing etc.
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Suggested Answer Paper Group II

Section -'A'
1. Read the following case and analyze it on the basis of the following questions.
(6+6+8=20 marks)
Anita met Nikita at the beginning of the school year. Anita was drawn to Nikita because
she seemed confident and positive. Over several months, the two of them became good
friends, sharing high and low points about school, family, and dates.
Two months ago, Nikita started dating Rabi, a man who dropped out of college after two
years and who now works as a waiter. At first, Nikita seemed happy with Rabi, but then
she started changing. She’s become less extroverted and a lot less positive.
Often, when Anita suggests doing something together, Nikita says she can’t because Rabi
might come over or call, and he doesn’t like her not to be available to him. When Anita
sees them together, she notices that he doesn’t treat her with respect and often criticizes
her harshly. For example, when Nikita said something to Rabi when he was on his cell
phone, he shouted, “Don’t talk to me. I’m on the phone.” Later, when Nikita dropped some
papers, Rabi said harshly, “You are so clumsy!”
Anita is concerned that Nikita may be in a relationship that is verbally and physically
abusive. Anita thinks that Rabi is damaging Nikita’s self-concept, and she wants to help.
Anita: I’m just worried about you. I don’t like the way he treats you.
Nikita: Because he called me clumsy? I am clumsy, and besides, if I do something stupid,
I can’t expect him not to notice.
Anita: But he doesn’t show any respect for you at all.
Nikita: Well, he’s a guy. He says what he’s thinking. I know a lot of people’s boyfriends
like that. Besides, I don’t think there’s anything wrong with Rabi. I think I just have to stop
doing things that make him mad.
Issues:
a) If you were Nikita’s friend, what responsibilities would you have, if any, for helping
her?
b) If you were Rabi’s friend, what might you say to alter his behaviors?
c) Does communication differ according to gender? Discuss with reference to the case
above.
Answer:
a) If I were Nikita’s friend, then I would listen to her and talk about her love positively.
It is necessary to have empathetic understanding with others so that they can open
up fully. It builds and sustains the friendship too. Then, one can take a rather
objective view and evaluate the terms of equality in the relationship. It also
© The Institute of Chartered Accountants of Nepal 38
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becomes important to discuss how the nondiscriminatory and non-abusive language

is important to establish equal terms of reference.
b) If I were Rabi’s friend, I would let him know he is a bit rough and insensitive fellow.
Since Nikita is now head over heels in love with him, later on she might not tolerate
such insensitive and abusive behavior. Therefore, as a friend to Rabi, it becomes
one’s responsibility to make him aware about his behavior and language. I would
suggest him how kind and gentle language promotes the relationship in love, and
establishes strong and long lasting relationship.
c) I do agree. Females are much more emotional and soft hearted than males. They
are very sensitive in the relationship. The case clearly shows that Nikita seems very
careful in the relationship; she believes that she should provide most favorable
environment to Rabi so that he enjoys her company and won’t leave her. On the
contrary, Rabi seems very insensitive and shows his male chauvinistic behavior. It
proves that communication is gender specific and for females mutual talk, and
spending time together are the secrets of building friendship, whereas males seem
to give less priority to communication in relationship.
2. Prepare a job application letter in response to the advertisement given below: (10 marks)
Assistant Product Manager: We are currently seeking an assistant product manager for
our fast-paced organization. S/he must possess a sound knowledge of marketing related
activities such as making marketing plan; executing, monitoring, & evaluating it. S/he
should be very good at computer use and must have very good interpersonal
communication skills. Please send your application to Ms. Courtney L. Donahue,
director of Del Rio Enterprises.
Answer:
May 23, 2019
Ms. Courtney L. Donahue
Director, Human Resources
Del Rio Enterprises
Denver, CO 82511
Dear Ms. Donahue:
I am applying for the post of assistant product manager realizing my education and training
closely parallel your needs. According to your advertisement, the job includes “assisting in the
coordination of a wide range of marketing programs as well as analyzing sales results and
tracking marketing budgets.” A recent internship at Ventana Corporation introduced me to
similar tasks. Assisting the marketing manager enabled me to analyze the promotion, budget,
and overall sales success of two products Ventana was evaluating. My ten-page report
examined the nature of the current market, the products’ life cycles, and their sales/profit
return. In addition to this research, I helped formulate a product-merchandising plan and
answered consumers’ questions at a local trade show.
Intensive course work in marketing and management, as well as proficiency in computer
spreadsheets and databases, has given me the kind of marketing and computer training that Del
Rio probably demands in a product manager. Moreover, my recent retail sales experience and
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participation in campus organizations have helped me develop the kind of customer service
and interpersonal skills necessary for an effective product manager.
After you have examined the enclosed résumé for details of my qualifications, I would be
happy to answer questions. Please call me at 9851133333 to arrange an interview at your
convenience so that we may discuss how my marketing experience, computer training, and
interpersonal skills could contribute to Del Rio Enterprises.
Sincerely,
Kendrahawkins
Kendra A. Hawkins
a) You are a research consultant and a company has sent you to a fieldwork to study on
the responses of their dealers and consumers at different places of the country. You are
at Bandipur now and collecting views of the respondents. Write an e-mail to the
company director reporting the major highlights of your recent study.
b) Discuss the secrets of involving actively and efficiently in a meeting.
Answer:
a)
To: ashoksinha@gmail.com
From: ratan20@gmail.com
Date: November 15, 2019
Subject: fieldwork briefing
Dear Dr. Sinha:
I’m now at Bandipur and news is so good here. The responses of both dealers and
consumers are really wonderful. Almost all the dealers here have sold our brand, and
they are really happy from its sale. It has monopoly in the footwear market. The
dealers have nothing to say about the quality and price of our product. But they have
one complain about the company’s current practice on delivery and payment system.
The consumers of every age group are found satisfied from our products. But most
of the young ladies are looking for more varieties of color and design. I hope I will
return soon and present my final report to you.
Regards,
Ratan Subba
b) Meetings are an opportunity for you to showcase your abilities and boost your career.
To get the most out of the meetings you attend, try these techniques:
• Arrive early. You show respect and look well organized by arriving a little early.
• Come prepared. Bring the agenda and any distributed materials. Study the topics
and be ready with questions, comments, and good ideas.
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• Have a positive attitude. Use positive body language; speak energetically.

• Contribute respectfully. Wait your turn to speak; raise your hand to be recognized.
• Wait for others to finish. Show respect and good manners by not interrupting.
• Keep your voice calm and pleasant, yet energetic. Avoid showing anger as this
focuses attention on your behavior rather than on your ideas.
• Give credit to others. Gain allies and enhance your credibility by recognizing
others in front of peers and superiors.
• Put the cell phone and laptop away. Focus your attention on the meeting, not on
answering e-mails or working on your computer.
• Help summarize. Assist the meeting leader by reviewing points you have noted.
• Express your views IN the meeting. Build trust by not holding post-meeting
“sidebars” that involve criticism and judgments.
• Follow up. Send the signal that you are efficient and caring by completing the
actions assigned to you.
a) Pros and cons of workforce diversity
b) Chronological resume
c) Group decision making process
d) Communicating ethically and responsibly
Answer:
a) Having a diverse workforce can benefit consumers, work teams, and business
organizations. However, diversity can also cause divisiveness among identity
groups. Business communicators should be aware of and sensitive to differences in
the communication techniques of men and women. To promote harmony and
communication in diverse workplaces, many organizations develop diversity
training programs. You must understand and accept the value of differences. Don’t
expect conformity, and create zero tolerance for bias and prejudice. Learn about
your cultural self, make fewer assumptions, and seek common ground when
disagreements arise.
b) A chronological resume is perhaps the simplest resume to write and is often the
format that is most preferred by employers. It is a fact-based resume that allows
employers to quickly skim through and get a feel for your work experience and
qualifications. It is written in the traditional format. Education and Experience are
the most highlighted headings in this resume. Within each section, the most recent
information is presented first. This type of resume is especially effective for
applicants who have progressed up a clearly defined career ladder and want to move
up. It is less effective for those who have career gap in their work history.
c) Groups process information in four stages: orientation, discussion, decision, and
implementation. Members work through these stages as they identify problems,
determine possible outcomes, and implement solutions. Challenges to group
decision making include the tendency of the group to spend too much time
discussing information its members already know; the inability of group members
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to express themselves clearly; errors in judgment; and overlooking pertinent and

sometimes important information.
d) Ethical communication is fundamental to thoughtful decision-making and
responsible thinking. It is about developing and nurturing relationships and
building communities. Ethical communication is also accepting responsibility for
the messages we convey to others and the short-term or long-term consequences of
our communication acts.
Developing concise, sensitive messages that focus on the receiver’s point of view
will build and protect goodwill and demand the attention of the receiver.
Communicating ethically and responsibly involves clarity, truthfulness, and
consideration.
Section -'B'
After Nepal embarked on the path of economic liberlisation in early nineties, the
Government of Nepal has adopted various policy measures and established institutional
support mechanism to attract greater flow of foreign investment in the country. KFC
(Kentucky Fried Chicken) is a fast food restaurant chain headquatered in Louisville,
Kentucky, United States which specializes in fried chicken. KFC is the world's largest fried
chicken chain with over 17,000 outlets in 115 countries and territories as of December
2011. Pizza Hut is also an American restaurant chain and international franchise that
offers different styles of pizza along with side dishes including salad, pasta, buffalo wings,
breadsticks and garlic bread. KFC and Pizza Hut entered Nepal in 2009, November 23 as
the first multinational food chain and opened their outlet at Durbar Margh. More than 500
people were served in the first two hours of business the very first day. Devyani
International franchisee of KFC and Pizza Hut also opened delivery at Blue Bird in
Tripureshwor in the year 2012, providing free home delivery service. The international
chain employs some 180 Nepalese.
A dispute between employees and the management has forced KFC and Pizza Hut to close
their outlets for about the month in 2012 when the Government is running Nepal Investment
year 2012/2013 to attract foreign investment in the country. The management has shut the
outlets alleging that the workers manhandled Human Resource Manager. Hotel and
Restaurant Workers Association leader says "the employee had been in the process of
registering their union at the Labour Office in Teku and the management had shut down
the eatery unilaterally to stall the registration of the union, accusing the staff of
manhandling HR manager".
According to KFC and Pizza Hut many of the ingredients are imported from abroad,
including the chicken from Brazil and Thailand and Potatoes from Australia via India.
Nepalese farmers are wondering why KFC and Pizza Hut need to import these while they
are readily available in Nepal. Recently, local poultry farmers seized two Indian containers
laden with chicken-meat for the Kathmandu-based on KFC Restaurant in Dharke. Both the
consignments have documents for customs and quarantine clearance from Birgunj.
However, the local farmers claimed that the chicken was being imported illegally. Devyani
International is an associate company of RJ Corp that has interest in Pepsi, Beer, Milk
Creambell Ice cream and Stem-cell Banking and Education in Nepal and India.
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After earthquake of April 2015 KFC was shut down due to trade union dispute but it
reopened on September after four months of uncertainty. Now the business environment
has been improved due to stable government. Many foreign investors are in pipe-line to
invest in future.
b) Describe the service marketing environment in Nepal?
c) What types of Pizza Hut's marketing strategy is suitable in Nepal?
d) Do you believe the foreign investment will grow in Nepal? Describe.
Answer:
a) The main issues of the case are as follows:
The main issues of the case are related with foreign investment in Nepal which has
created various opportunities and challenges in Nepalese business environment. One
of the issues mentioned in the case is overwhelming response on the launching of
multinational companies like KFC and Pizza Hut which is very encouraging for
investors. Another issue is labor relation problems in such chain stores. Conflicts
between management and employees while registering labor union and adverse
situation because of that reason is one of the main issues of the case. Similarly, use of
imported ingredients by not using local such ingredients, which was raised by the
Nepalese farmers, is another main issue of the case. In the given case, it has already
mentioned that many of the ingredients are imported from abroad such as chicken from
Brazil and Thailand and potatoes from Australia. Thus, celebrating investment year by
government in one hand and unfavorable situation created by labor disputes and
unhappy Nepalese farmers and their protests against import of ingredients which are
easily available in Nepal in another hand are the main issues of the case.
b) Marketing environment is always changing. While taking about service marketing
environment it has both opportunities as well as threats. Based on the above case,
customers are very happy because of the emergence of global chain store like KFC and
Pizza Hut. But it has created challenges for local producers and suppliers. Level of
competition has increased. Local firms have stared to face global competition.
Bargaining power of trade union has increased.
Similarly, while talking about macro environment of service marketing, foreign
investment in service sectors have increased. Many foreign investors are in pipe line to
invest in future. Now we have stable government. Thus we can say with confidence
that business environment has become favorable for investors. Employment
opportunities has also increased in Nepal. Thus in conclusion, growing investment has
created both opportunities and challenges in Nepalese service marketing environment.
1. Political-legal, technological, economical and socio-cultural factors dictate the
marketing environment in the context of Nepal. They are both directly and
indirectly linked to impact business decision and affect their marketing activities.
2. Politically, Nepal has now been moving ahead for flexible foreign investment
policy. After election in 2017, Nepal has got stable government after fifteen years.
Now government amended several legal policies in favour of foreign investors.
These policies influence the marketing directly or indirectly.
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3. The economic environment of Nepal is another element contributing to marketing

environment in Nepal has been improved. The government and other international
organizations have predicted around 7 percent growth rate in 2019.
4. Talking about the micro-elements of marketing, they’re those factors which can be
influenced by the business. It includes customers, employees, competitors, media,
shareholders, and suppliers have now conducive environment. Banks, Insurance,
air lines restaurants and hotels have more attraction Foreign Direct Investment.
Trade unions are matured and become professional.
c) Pizza Hut is a multinational chain store. It has its own competitive advantages. Thus,
in my opinion, product line strategy is appropriate while formulating product strategy
as they re offering close related products. Regarding pricing strategy, market skimming
strategy is appropriate. In this strategy, marketers set very high price targeting image
oriented customers. Exclusive distribution strategy is suitable for Pizza Hut because
products offered by them are considered as specialty product by Nepalese customers.
In the context of promotion, pull strategy is suitable for them. Internet marketing and
use of social sites will be added benefits for them. As they are the service providers,
they should not confine their marketing mix to four P’s. they must add people, process
and physical evidence in their marketing program. In conclusion, they should
implement such strategy which must be customer oriented to lead the market in future.
d) In my opinion, foreign investment will grow in future because of the improved business
environment of Nepal. As given case has already mentioned that many foreign
investors are in pipe-line to invest in future. Now we have stable government that is
great opportunity for foreign investors. In my opinion, liberal government policy for
foreign investors, dual citizenship for non-residential Nepalese, expected growth rate
of GDP, cheap labour, strategic location between two giant countries, possibilities of
tourism, easily availability of cheap raw materials, no load shedding situation, impact
of globalization triggers the foreign investment in Nepal.
6. Describe marketing environment in Nepal. Explain the emerging marketing challenges.
(10 marks)
Answer:
Nepalese marketing environment consists of forces that influence exchange relationships.
It affects the performance and outcomes of Nepalese marketing environment. It consists of
political-legal, economic, socio-cultural, technological forces which create opportunities
and challenges for Nepalese marketers.
Nepal is a republican democratic country based on multi-party system. There are more than
dozens political parties. Among them, Nepali Congress, Nepal Communist Party, are major
parties of Nepal. Ideologies of party directly affects Nepalese marketing. Nepali Congress
advocates economic liberalization and privatization where as Nepal Communist Party
advocates public sector promotion. Political instability is the major problem of Nepal.
Pressure groups are emerging in Nepal. Their activities influence marketing. Nepal
government has enacted various law such as consumer protection act, environment
protection act, income tax act, company act etc. Nepal has three tier courts. After local
election deputy mayor has been working as a chairperson of local judicial committee.
Nepal has a mixed economic system. Government’s development activities are based on 5
years development plan. Recently, Nepal Rastra Bank has implemented new monetary
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policy, acute trade deficit is Nepal’s evergreen problem of trade sector. Per capita income
is very low in comparison to other countries. Merger is the common phenomena in
Nepalese financial institutions. Nepal is one of the least developed country of the world.
Corruption is very common in each and every sector of the country. Economy of the country
is survived by the foreign employment and remittance. Industrialization is very slow.
Economy is still agro-based. Total population is nearly thirty million. Majority of its
population is below fourteen. Majority of the population are Hindus. Nepal is multi-lingual
country. It has diversified culture. Because of the education and communication, culture is
highly dynamic. Pace of technological change is very show. Research and development is
neglected part of the economy. Nepal is research is natural resources but wastage of
resource is common in Nepal.
Emerging major marketing challenges are as follows:
1. The new digital age:
Use of computer, telecommunications, information, transportation, live satellite
broadcast. Internet created new way to learn about and track customers and create
products & distribute it. Video conferencing. Cell phones, fax machines, CD ROM, pen
drive, blue tooth, interactive T.V. etc. too available. E-Commerce made marketing
possible at home, can receive any goods in 24 hours a day 365 days a year.
2. The Internet:
Internet is web of networks. It allow any time anywhere connections to information,
entertainment and communication. It made close relation with customer & partners.
Internet users are in billions. Business to Business e – commence is higher than
consumer purchases. Social networking, consumer generated media are products of
internet.
3. Rapid globalization:
World becoming increasing smaller, marketers are now connected globally with their
customers. Every product is getting worldwide markets. Coca-Cola in more than 200
countries, MTV in 140. e.g. Bill Blass, US fashion designer selects materials from
Australia, designs prints in Italy, designs the dress in Texas and email drawing to Hong
Kong agent to place order in Chinese factory, finished dress will be air freighted to New
York for further distribution around the cities. Managers must think globally about the
product, competitors and opportunity now
4. The call for more ethics and social responsibility:
Consumerism and environmentalism movements are getting stronger demanding to
take greater responsibility for social and environmental impact of business companies,
actions which is also forced by law. Forward looking companies view socially
responsible actions as an opportunity to do well by doing good, serving long run
interests of their customers and community and getting sympathy.
5. The growth of not for profit marketing:
Colleges, hospitals, museums, churches, religious events, NGOS, INGOS are working
to maintain their decreasing flocks. Ads for recruits in Indian army, energy
conservation, discourage smoking, excessive, drinking, drug use. Governments are
nonprofit institutions. US Government is 24th largest advertiser in USA. Government
of Nepal is the largest advertiser in Nepal.
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7.
a) Explain the types of buying behaviour? Describe the factors affecting consumer buying
process.(5 marks)
b) What is industrial product? Explain about ‘installations’ and ‘accessory equipment’
with examples. (5 marks)
Answer:
a) Buying behavior is the decision processes and acts of customers involved in buying
and using products. It is buying behavior of customers. Customers can be individual or
organization. Thus, we can classify buying behavior into two categories, i.e., consumer
buying and organizational buying. Organizational behavior refers to the buying
behavior of organizations that buy products for business use, resell or to make other
products. Organizations consists of business, industries, retailers, government, and
non-government organizations. Similarly, if any customer buy products for personal
use, household use or ultimate consumption, they are ultimate customer. Behavior
shown by customer before purchase, during purchase and after purchase is known as
consumer buying behavior. In another words, behavior shown by customer about
acquisition of product, consumption of product and disposal of product. Consumer
buying behavior varies with the type of buying decision. Based on buying decision
consumer behavior can also classified into: high involvement and low involvement
purchase.
Consumer buying behavior is affected by economic factors, personal factors,
psychological factors, socio-cultural factors. Economic factors which influence
consumer buying includes level of income, availability of liquid assets, savings, debt
and credit availability, attitude toward spending and economic conditions. Similarly,
age, gender, family size, family lifecycle, occupation, education are the personal factors
which affects consumer buying decisions. Again, psychological factors also influence
consumer buying decisions, which includes motivation, perception, learning, belief,
attitude, personality, life style etc. Socio-cultural factors also affect consumer buying
decisions. Socio-cultural factors include reference groups, family, roles and status,
social class, culture, sub-culture and cultural dynamism etc.
b) Industrial products are those products purchased for further processing or for use in
conducting a business. Thus, the distinction between a consumer product and an
industrial product is based on the purpose for which the product is purchased. If a
consumer buys yeti carpet for the use in his home, the carpet is a consumer product. If
the same carpet is purchased for the official use, the carpet is an industrial product.
Raw materials, fabricating material and parts, installations, accessory equipment,
operating supplies, business service, are the examples of industrial products among
them installations and accessory equipment are explained as follows:
Installations
Manufactured products that are an organization’s major, expensive and long-lived
equipment are called installations. The characteristic of installations that differentiates
them from other categories of industrial products is that they directly affect the scale of
operations in an organization in producing goods or services. Sales are usually made
directly from producer to business user; no middlemen are involved, Because
installations are technical in nature, a high caliber will trained sales force is needed to
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market installations. Because installations require careful, detailed explanation,

promotion emphasizes personal selling. Buildings, generators, elevators, air bus are the
example of installations.
Accessory Equipment
Tangible products that have substantial value and are used in an organization’s
operations are called accessory equipment. This category of industrial goods neither
becomes an actual part of finished product nor has a significant impact on the
organization’s scale of operations. The life of accessory equipment is shorter than that
of installation. Some examples are point of sale terminals in a retail store, small power
tools and office desks.
8. Write short notes on: (5×2=10 marks)

a) E-commerce
b) Psychological pricing
c) Physical distribution
d) Cost–plus Pricing
e) Specialty product
Answer:
a) E-commerce means that the company or site offers to transact or facilitate the selling
of products and services online. It has given rise in turn to e-purchasing and e-
marketing.
b) Psychological pricing is one of the popular pricing strategies which encourages
emotional buying. It influences buyers to perceive the price favorably. Psychological
pricing includes prestige pricing, odd-even pricing, psychological discounting,
customary pricing and promotional pricing. 99 pricing is one of the examples of
psychological pricing.
c) Physical distribution includes all the activities associated with the supply of finished
product at every step, from the production line to the consumers. Important physical
distribution functions include customer service, order processing, inventory control,
transportation and logistics, and packaging and materials.
d) Adding a standard mark-up to the cost of the product is called cost-plus pricing. This
is the simplest methods of pricing, which involve a fixed cost and variable cost per
units and adding the desired profit margin on the total cost.
e) Specialty products are consumer products and services with unique characteristics or
brand identification for which a significant group of buyers is willing to make a special
purchase effort. Buyers normally do not compare specialty products. They only invest
the time needed to reach dealers carrying the wanted products. Customers are usually
willing to travel great distance to buy specialty product. Dealers do not need convenient
locations, although they must let prospective buyers know their locations. Bata shoes,
sick pack machine, sauna belt, Mercedes car, etc. are examples of specialty product.
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Paper 6A: Business Communication
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CAP II Paper 6: Business Communication & Marketing
Marks
Section -'A'
Jane Rye is a student of advertising at State University and will graduate at the
end of the next term. She has a part-time job in the sales department at a local
television station. When hired, Rye thought she was very lucky to have a job
there, not only for the money but also for the work experience.
Pat Trent, the sales manager who hired her, was Rye’s immediate supervisor.
Rye was doing a very good job and received considerable support from Trent.
In fact, the sales manager had nothing but praise for Rye’s work when
reporting to top management. Trent often told her subordinate that her work
was exceptional and Trent would like to hire her on a permanent basis after
graduation to head a new media research department for the station. The job
seemed to promise a challenging and rewarding career.
While Rye was flattered by the offer, she was not interested in the position
because she found her present job unsatisfying. However, she never told Trent
her feelings about the job or the possible appointment. Because Trent had
trained Rye and had promoted her to everyone, Rye had become very loyal
and grateful to her sales manager. Thus, Rye thought she would betray Trent
if she were to refuse the job. After six weeks, however, Rye decided to quit
and work part-time at the university, but she did not know how to approach
her boss.
Rye, feeling unable to say anything to Trent, let time pass until the day she
was ready to quit to start her new job. When Rye got to work that day, the
sales manager was scheduled to leave town later that morning. Rye was forced
to go into Tent’s office while two other people were there, discussing another
matter. Trent asked Rye what she wanted, and Rye replied, ―I am resigning.‖
The sales manager was taken completely by surprise, asked Rye why she was
resigning, and wondered what was to be done with the project Rye was
handling. Rye apologized for such short notice. Rye explained that she was
taking a part-time job at the school starting tomorrow. Trent, very
disappointed in her, said, ―If you had told me sooner, I could have phased out
the project to someone else- now I’m in a bind,‖
a) How should Rye have handled her resignation?
b) Where, when, and how do you think Rye should have resigned? Do you
think Trent would have understood under different circumstances?
c) How did Trent foster Rye’s reluctance to communicate?
d) What are some possible long-term repercussions of the way Rye handled
her resignation?
Answer:
a) Rye should have resigned more gracefully and more professionally. She should have
given adequate notice to her supervisor, Mr. Trent so that he could have saved his
project by hiring another appropriate employee. She also should have talked to her

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supervisor in greater details about the probable difficulties he might face because of
her abrupt discontinuation in the job. She also should have talked to him the problems
and difficulties she faced during the work because of which she decided to quit.
Lastly, to save the project, she should have continued until the project is completed.
b) She should have explained the circumstances that forced her to quit, in a formal
resignation letter, may be a month prior to her resignation date. Once she provided
Trent with her legitimate reasons for quitting the job, Trent would also have reacted
professionally and gracefully. Then the story would have been different.
c) Trent also failed to understand Rye properly. He just saw what he wanted to see. He
is also a failure as supervisor, especially in regard with communication. He was so
confident on her that his blind faith on her at the end proved to be fatal to the
organization. He might have learnt a lesson that managers must try to listen to their
subordinates.
d) In this case, the organization may immediately lose some money and reputation.
Trent may also lose faith on humanity or even in his capacity to recognize people. It
may reduce the level of trust on each other in the long run. If stakeholders of
organizations are unprofessional, businesses will ultimately collapse.
2. What importance does ethical communication have in business? Discuss some

of the ways of maintaining ethical standards in business. (5+5=10)
Answer:
As a business communicator, you should understand basic ethical principles so that
you can make logical decisions when faced with dilemmas in the workplace.
Professionals in any field must deal with moral dilemmas on the job. However, just
being a moral person and having sound personal ethics may not be sufficient to
handle the ethical issues that you may face in the workplace. On the job you will face
many dilemmas, and you will want to react ethically.
Taking ethics into consideration can be painful in the short term. But in the long term
ethical behaviour makes sense and pays off. Dealing honestly with colleagues and
customers develops trust and builds stronger relationships. Many businesses today
recognize that ethical practices make good business sense. Ethical companies endure
less litigation, less resentment, and less government regulation. The following
guidelines can help you set specific ethical goals and maintain a high ethical standard.
Abiding by the Law. Know the laws in your field and follow them. Particularly
important for business communicators are issues of copyright law. Don't assume that
Internet items are in the "public domain" and free to be used. Internet items are also
covered by copyright laws.
Telling the Truth. Ethical business communicators do not intentionally make state-
ments that are untrue or deceptive. We become aware of dishonesty in business when
violators break laws, notably in advertising, packaging, and marketing. Half truths,

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exaggerations, and deceptions constitute unethical communication. But conflicting

loyalties in the workplace sometimes blur the line between right and wrong.
Labeling Opinions. Sensitive communicators know the difference between facts and
opinions. Facts are verifiable and often are quantifiable; opinions are beliefs held with
confidence but without substantiation. Stating opinions as if they were facts is
unethical.
Being Objective. Ethical business communicators recognize their own biases and
strive to keep them from distorting a message. Honest reporting means presenting the
whole picture and relating all facts fairly.
Using Inclusive Language. Strive to use language that includes rather than excludes.
Do not use expressions that discriminate against individuals or groups on the basis of
their gender, ethnicity, disability, or age. Language is discriminatory when it
stereotypes, insults, or excludes people.
Giving Credit. Ethical communicators give credit for ideas by (1) referring to ori-
ginators names within the text, (2) using quotation marks, and (3) documenting
sources with endnotes, footnotes, or internal references. In school or on the job,
stealing ideas or words from others is unethical.
3.
a) What is workforce diversity? Explain briefly. 5
b) Suppose you’ve applied in an XYZ Company for the programmer
position. It’s been nearly two weeks and yet you haven’t heard anything
from the company. Write a follow-up letter to Mr. John Gilbert, the
Human Resource Manager of XYZ Company regarding the confirmation
of the receipt of your application. Also add further necessary information. 5
Answer:
a) Diversity is the collective strength of experiences, skills, talents, perspectives, and
cultures that each agent and employee brings to the organization. It is very important
term in intercultural communication. It’s how we create a dynamic business
environment to serve our customers. Hence, the organization attempts to create an
inclusive working atmosphere. Inclusion is about respecting and valuing the unique
dimension each agent and employee adds to the organization. The firms recognize
that agents and employees are at their creative and productive best when they work in
an inclusive work environment.
We look at diversity differentiating three dimensions of analysis: a symbolic, social,

and individual dimension. By maintaining these dimensions, we try to avoid reducing
the complexity of diversity, which in the normal case is multi-dimensional.
Although the concept is often framed in terms of ethnic background, a broader and
more useful definition of diversity includes ―all the characteristics and experiences
that define each of us as individuals.‖ As an example, any of the companies today

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identifies separate dimensions of diversity in its discussions of workforce diversity,

including gender, race, age, military experience, parental status, marital status,
religious and ethnic background, geography and thinking style.
b)
Mr. John Gillbert

XYZ Company
87 Silken Road
Omega, Nepal.
Jan. 24, 2019
Dear Mr. Gillbert,
I submitted a letter of application and a resume earlier this month for the programmer
position advertised in the Times Union. To date, I have not heard from your office. I
would like to confirm receipt of my application and reiterate my interest in the job.
I am very interested in working at XYZ Company and I believe my skills and

experience would be an ideal match for this position.
If necessary, I would be glad to resend my application materials or to provide any

further information you might need regarding my candidacy. I can be reached at
(555)555-5555 or binusharma@abcd.com. I look forward to hearing from you.
Thank you for your consideration.
Sincerely,
Signature
Binita Sharma

a) Graphics in business communication
b) Overcoming group problems
c) Information overload
d) Demerits of written communication
e) Proxemics
Answer:
a) Graphics in business communication
Graphics, one of the highly effective non-verbal tools commonly used in business
communication refers to different designs, drawings or pictures that we keep in our
power point slides, advertisements, business texts, brochures, instructions, manuals,
etc. The usefulness of graphics in business communication can never be

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underestimated since graphic representation of information becomes not only clear

and precise but also impressive and persuasive. It is commonly believed that a picture
is worth thousand words. Line graphs, histograms, bar charts, pie charts, figures, etc.
are the common examples of graphics.
b) Overcoming group problems

Working in groups may invite a number of problems though it is believed that team
work contributes to attaining the organizational goals and missions. The group
problems are to be settled so that the expected outcomes can be ensured. Some of the
important strategies for overcoming the group problems are:
 Working with group spirit and identity;
 Discouraging personal skepticism, lobbying, influences and thoughts;
 Training on group autonomy and group dynamism;
 Generating the sense of cooperation, endurance and collaboration.
c) Information overload
Information is the power but if one tries to send too much information at once, it may
be difficult for the listener/ reader. Too much information is as bad as too little. It is
because it reduces the receiver’s ability to concentrate effectively on the most
important messages. People facing an information overload may sometimes tend to
ignore major part of the messages, delay in responding to others, answer only
partially to the messages, respond inaccurately to the messages, spend less time with
each message, and respond only superficially to all the messages. So effective
communicators must be aware of this potential trap.
d) Demerits of written communication

 It is costly and time consuming.
 It becomes difficult to maintain privacy about written communication.
 It is rigid and doesn’t provide much scope for making changes.
 It is very formal and lacks personal touch.
 It is often too formal and structured.
 Different people may interpret it differently.
e) Proxemics
Proxemics or the use of space, is another area of cultural difference. We might see
differences in a meeting room seating arrangement depending upon the proxemics of
a culture. People in the United States have an intimate zone of less than 18 inches for
people they know very well, a social zone of 4 to 12 feet used with people with whom
they work closely, and a public distance of over 12 feet for those they do not know.
Cultural standards create different proxemics—some engage in hugging and cheek or
air kisses. In the United States a private office is considered a status symbol, whereas
in Japan there are only a few and even those are not used a great deal of the time. In
France, the boss sits in the middle of the work area, with his subordinates in offices
around him or her.

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Paper 6B: Marketing

770

Section -'B'
Ram Bahadur Thapa recently took voluntary retirement from Nepal Bank Ltd.
at the age of 56. He worked in this same bank for the last 30 years. At
retirement he received Rs. 12 lakh as gratuity. He is the father of three sons –
Shyam Bahadur (26), Harka Bahadur (20) and Gokul Bahadur (16). His wife
Sharmila (50) is still working in a secondary school as math teacher. They live
in a two-bedroom house in Sitapaila, Kathmandu.
In 1990, he had bought a Sony 20‖ TV and a Chinese VCD. These were the
only means of entertainment for the family. The TV set had grown too old and
needed replacement. The set had worn out beyond any possibility of repair.
Sharmila also proposed that the family should exchange both TV and VCD
and buy a modern flat screen TV and DVD. Ram Bahadur agreed on the
proposal to replace the TV but disagreed on buying the DVD. He argued that
the VCD is all right and serves the purpose of occasional viewing of movies.
Harka Bahadur insisted that the image and sound quality of DVD is far better
than that of the VCD. He argued ―everybody today has a DVD‖. He suggested
that his father should visit some shops in Mahabaudha and listen to the sound
and image quality of the DVDs. Ram Bahadur asked his son ―what should I
do with the old VCD, no one would buy it even for Rs. 1000‖. Harka Bahadur
suggested that it should be thrown away as garbage.
Ram Bahadur agreed to his son’s suggestion and took him to the market to
look at the DVD alternatives. The price range of the different brands varied
between Rs. 3500 for the Chinese to Rs. 9000 for Korean DVDs. Ram
Bahadur was highly impressed with the DVDs convenience and the slim look.
Both the Chinese and Korean products looked similar. He wanted to buy
cheaper one, but his son suggested buying the more expensive one. Harka
Bahadur insisted on buying a popular brand ―Samsung is so popular and has
high image; besides, it has a warranty period of two years‖. Ram Bahadur
argued ―the Chinese is not only cheap but strong, see the last VCD is still
working for the last 15 years‖. They could not decide on the brand to buy and
finally agreed that they would consult the other family members and buy that
brand which receives the highest vote.
a) How did Ram Bahadur’s family recognize their needs?
b) What are the sources of information used by Ram Bahadur’s family?
c) Explain the role played by various members in the buying process of TV
and DVD.
d) Explain the brand preference of Ram Bahadur and his son about Chinese
and Korean DVD.

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Answer:
a) Need is the state of felt deprivation. Consumer purchases various types of goods or
services to satisfy their needs. Need recognition is the starting point of consumer
behavior. Need is activated because of the internal stimuli and external stimuli.
Customers will recognize needs if there is change in actual or ideal state. In Ram
Bahadur’s family, the TV set had grown too old and needed replacement. The set had
worn out beyond any possibility of repair. It indicates decrease in actual state. But in
case of DVD, old VCD is still working for its occasional use, but Ram Bahadur’s son
and wife are insisting him to buy DVD. It indicates increase in ideal state. Similarly,
need of TV set is activated because of the internal stimuli and need of DVD is
activated because of the external stimuli as Ram Bahadur’s son has expressed his
view about the picture and sound quality of DVD and he also had said that everybody
had DVD in their home.
Thus, they have recognized their needs because of, decrease in actual state in case of
TV and increase of ideal state in case of DVD.
b) Information search is the second stage in consumer buying process. Customers search
information form internal source and external source. Internal source is related with
retrieval of their own memory. If information retrieved from internal source is not
enough, consumers search information from external sources. External source
includes personal source, commercial source, public source and experimental source.
In Ram Bahadur’s family, they have used both internal as well as external sources of
information. Ram Bahadur, his wife and His son Harka Bahadur have used internal
sources of information by the retrieval of their own memory. Again they have used
commercial sources of information form the shopkeeper of Mahabaudha. They have
also used the information from experimental sources by observing picture and sound
quality of the TV and DVD at the shop.
c) In consumer buying decision process, role played by different family members may
be initiator, influence, decider, purchaser etc. In Ram Bahadur’s family, Ram
Bahadur’s wife Samrila has played the role of initiator as she has proposed to
exchange both TV and VCD. She has also initiated to purchase flat screen TV and
DVD. Ram Bahadur and his son have played the role of influencers as Ram Bahadur,
in the beginning, not interested to buy DVD. In the later phase he has insisted to buy
Chinese DVD as he is the satisfied customer of Chinese VCD. It was purchased in
1990 and which was still working for its occasion use. Similarly, his son Harka
Bahadur has influenced tried to influence Ram Bahadur to purchase DVD because of
its picture and sound quality. Again Harka Bahadur has also suggested his father to
visit Mahabaudha. He has also insisted to buy Korean DVD. He has tried to influence
Ram Bahadur to purchase Korean DVD by explaining popularity of Samsung brand
and warranty period of two years. But other family members have played no role in
the given case.
d) In the given case, there is no confusion about purchasing TV set. In case of DVD
Ram Bahadur and his son Harka Bahadur have different choice. Ram Bahadur wants

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to purchase Chinese DVD whereas his son Harka Bahadur is in favor of Korean
DVD. Ram Bahadur is satisfied customer of existing Chinese VCD. Thus, as a
satisfied customer he wants to purchase Chinese DVD. Similarly, Harka Bahadur is in
favor of Korean DVD because of his age and personality factor. He is also inspired by
the brand consciousness because in consumer behavior, young people are highly
brand conscious than older people. In the given case, age of Ram Bahadur is 56 and
age of Harka Bahadur is only 20. Again, in consumer behavior, young people are risk
taker and matured people are risk avoider. In the given case, this risk taking
behaviour is also reflected in their brand preference while selecting Chinese or
Korean DVD.
6. Describe the impacts of macro environment in marketing. 10

Answer:
The marketing environment is everything your company must take into consideration
when developing and presenting a new product. The elements of a marketing
environment include, but are not limited to, the changing preferences of customers,
your competition, the legal, political and regulatory environment, your own resources
and budget, current trends and the overall economy. All these elements affect your
marketing decisions -- or at least they should, because all of them influence your
prospects.
Tastes and Trends

To be successful, a marketing plan should focus on consumer preferences and current
market trends. In recent days, many large retailers have decided to adapt to
consumers' increasing enthusiasm for social media by establishing corporate Twitter
accounts and opening online storefronts in Facebook. Consumers no longer need to
visit a retailer's main website to buy; some platforms allow them to make the
purchase without ever leaving Facebook. Companies that fail to take major trends
into account may find their sales lagging behind competitors'.
Budget and Economy

Your budget plainly has a role in your marketing decisions. It dictates how much
advertising you buy and where you can afford to place it. The overall economy also
has a massive influence on your marketing decisions. If you're marketing in a down
economy, your consumers won't be willing to pay a premium for your product, and
your advertising should probably point out that the product saves your customers
money, costs less than your competitor's product, or lasts a long time and is therefore
a good value. In a strong economy, your strategy probably will change. You'll be able
to charge more, and your ad message may stress the pleasure or convenience your
product offers your customers
Competitors
Prudent marketing decisions must factor in competitors -- how many you have and
how good they are at what they do will affect your marketing plans. If, for example,
your competitors are able to offer their product for a much lower price than yours,
your marketing strategy must stress the fact that your product is of a higher quality,

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that your warranty is better, or that your product lasts longer. If you have few or no
local competitors, you're free to expand into new markets.
Legal and Political

Changes in the political and legal environment can restrict or even end certain
marketing activities. The tobacco industry is a case in point. The U.S. government
first mandated cigarette warning labels in 1965, and, as evidence of cigarettes'
harmful health effects grew, it battled the tobacco industry more and more vigorously.
These battles culminated in the passage of a 2009 law that gave the federal
government the authority to regulate tobacco, which also includes its marketing and
labeling. In Nepal few years back the government has mandated the same warning
labels. Therefore, before offering a product, you should consider whether it is a
candidate for legal or regulatory trouble.
7.
a) What are external factors affecting price determination? 5
b) Describe the components of marketing information system. 5
Answer:
a) Price is exchange value what the buyers get and seller receive. Determining price is a
technical as well as difficult job for any producers. Generally, it is determined on the
base of total cost. In this global competition, price is affected by the both internal and
external factors. External factors are explained below:
1. Competition:
While fixing the price of the product, the firm needs to study the degree of
competition in the market. If there is high competition, the prices may be kept low
to effectively face the competition, and if competition is low, the prices may be
kept high.
2. Consumers:
The marketer should consider various consumer factors while fixing the prices.
The consumer factors that must be considered includes the price sensitivity of the
buyer, purchasing power, and so on.
3. Government control:
Government rules and regulation must be considered while fixing the prices. In
certain products, government may announce administered prices, and therefore the
marketer has to consider such regulation while fixing the prices.
4. Economic conditions:
The marketer may also have to consider the economic condition prevailing in the
market while fixing the prices. At the time of recession, the consumer may have
less money to spend, so the marketer may reduce the prices in order to influence
the buying decision of the consumers.
5. Channel intermediaries:
The marketer must consider a number of channel intermediaries and their
expectations. The longer the chain of intermediaries, the higher would be the
prices of the goods.

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b) The four components of Marketing Information System are described below.

Internal Database
Internal Database is also known as Internal Records System. Internal data is
electronic collection of information obtained from data sources within the company.
Like from accounting department (financial statements, records of sales, cash flows),
from operations department (production schedules, shipments, inventories), from
Sales force (reseller and competitors activities), from marketing department
(customer demographics psychographic, buying behaviour, customer satisfaction,
service problems, customer database). Sometimes may need surveys on employees.
Internal databases accessed quickly & cheaply. Internal data Problems: it is collected
not for marketing and data ages quickly, out of date.
These records provide past and current information about sales, costs, inventories,
cash flows and account receivable and payable. Many organizations maintain their
internal records from the computerized system. These records help to forecast the
future through analyzing the past and present scenario of the organizations too.
Marketing Intelligence System
Marketing Intelligence is systematic collection and analyses of publicly available
information about competitors and daily developments in marketing environment.
Marketing intelligence can be achieved through quizzing own employees(employees
knows customers better), Bench marking competitors’ products/activities, surfing the
internet/social media, visiting industry tradeshows, searching rivals parking lots/ trash
bins outside their building, knowing thought common suppliers, resellers, customers,
other companies' annual reports, publications, press releases, advertisements of
competitors, spying, employing actors(disguised shopping), talking to off duty
employees of competitors.
It collects information from external sources such as magazines, trade journals,
books, commercial publication and so on which provide the information about current
marketing-environment and changing conditions in the market. Marketing
intelligence acts as a mirror of prevailing marketing environment reflecting precisely
how things are going on in the market.
Marketing Research System
Marketing Research is collecting specific information systematically. Marketing
Research is systematic design, and analyses and reporting of data relevant to specific
marketing situation facing an organization like market potential, markets share,
effectiveness of pricing, product, distribution, promotion, advertising research, sales
research (efficiency of sales personnel, sales potentials, efficient distribution,
forecasting future sales), motivational research and attitude research etc.
It is conducted to solve specific problems of the company. Thus, it is a formal study
of specific problems, opportunities or situations. It pinpoint the problem, collects data
to solve the problem, data are analyzed, conclusions are drawn and then
recommendations are given for solving the problem. According to Kotler (2006)
marketing research is the systematic design for collection, analysis and reporting of
data and findings relevant to specific marketing situations facing by the company.
Thus, marketing research is related to any problem regarding buyer behavior, product
or brand preferences, product or brand usage, advertising awareness, sales promotion,
physical distribution, dealer behavior, competition etc.

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Decision Support System (Information Analysis)

Decision Support System (DSS) is also known as Information Analysis component
in MIS. Data, research may require more analysis, advanced statistical analysis.
Stores, analysis and synthesizes the information/data gathered from various sources.
DSS has three components (1) data bank (lazar, register, books, computer hard
drives) (2) statistical bank (averages, %, dispersion, cross tabulations, multivariate,
regression, factor analysis, cluster, conjoint analysis soft wares) (3) model bank
(synthesis of two or more information to prescribe the right course of actions.
Examples are BCG/GE Matrix, Markov model, queuing model, game theory,
heuristics, X2/chai-square test etc. models)

a) Branding
b) Stages of consumer buying process
c) Public relations
d) Components of physical distribution
e) Market segmentation
Answer:
a) Branding
Branding is a process of creating a unique name, term, design, symbol, or any other
feature to the products. It helps to identify manufacturer of the product. It plays an
important role in marketing. It reflects the features of the product.
b) Stages of consumer buying process

Consumer buying process consists of following stages:
 Need recognition
 Information search
 Analysis of alternatives
 Purchase decision
 Post purchase evaluation
 Disposal
c) Public relations
Answer: Public relations are a broad set of activities used to create and maintain
favorable attitude of customers, government officials, press and society toward
company. It is achieved through effective personal relationships, presentation of a good
corporate image, social responsiveness and charity work. Tools of Public Relations are
as follows
 Media relations
 Group relations
 Lobbying
 Blogging
 Social media marketing
 Sponsorship of social events

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d) Components of physical distribution

I. Transportation
II. Warehousing
III. Material Handling
IV. Inventory management
V. Order Processing
VI. Information Management
e) Market Segmentation
The process of defining and subdividing a large homogenous market into clearly
identifiable segments having similar needs, wants, or demand characteristics. Its
objective is to design a marketing mix that precisely matches the expectations of
customers in the targeted segment.

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Suggested Answer- December 2018
Paper 6:
Business Communication & Marketing
The Institute of Chartered Accountants of Nepal 90

889
Suggested
Roll No……………. Maximum Marks – 100
Total No. of Questions - 8 Total No. of Printed Pages -5
Time Allowed – 3 Hours
Marks
Section -'A'
Generational differences abound in the workplace, but few are quite as
visible as body art: tattoos, piercings (other than ear lobes), and hair dyes
in unconventional colors. According to survey data from the Pew Research
Center, people younger than 40 are much more inclined than those over 40
to display some form of body art. For example, people 26 to 40 years old
are four times more likely to have tattoos than people who are 41 to 64
years old.
With such profound differences, it‘s no surprise that body art has become a
contentious issue in many workplaces, between employees wanting to
express themselves and employers wanting to maintain particular
standards of professional appearance. As employment law attorney
Danielle S. Urban notes, the issue gets even more complicated when
religious symbolism is involved. Who is likely to win this battle? Will the
body art enthusiasts who continue to join the workforce and who are now
rising up the managerial ranks force a change in what is considered
acceptable appearance in the workplace? Or will they be forced to cover
up in order to meet traditional standards? So far, most companies appear to
be relying on the judgment of their employees and managers, rather than
enforcing strict guidelines.
Many seem to accept that tastes and norms are changing and that body art
has become a widespread form of self-expression rather than a mode of
rebellion. Job seekers are still advised to be discreet, however, particularly
with facial piercings and large, visible tattoos. The nonverbal signals you
think you are sending might not be the signals a hiring manager receives.
Questions:
a) Should companies have stricter standards of appearance?
b) Should there be difference for ―customer-facing‖ employees than for
employees who do not interact with customers in terms of appearance?
c) Should companies allow their employees the same freedom of
expression and appearance latitude as their customer's exhibit? For
example, if a firm‘s clientele tends to be heavily tattooed, should
employees be allowed the same freedom?

890
d) Do people in Nepal have different perspectives and attitude on a

colleague who has tattoo or dreadlock hair or both?
Answer:
a) Companies according to their nature of jobs make different organizational
culture. Appearance of the employees depend on the type of job they perform.
Also, it depends on the space where they work, the culture and the age group
they belong to. The service industries like education, banking and health in
some part of the world might set strict standards of appearance for uniformity
and to assert the company identity. While imposing the stricter standard of
appearance the organizations should also take care of the types of clients.
Because organizations and companies are to satisfy their clients, they should
very carefully set organizational standard as far as uniformity and appearance
is concerned. Formality is considered as one of the important parts of an
organization. Now the question is what is ‗formal‘. So, the formal is defined
by the community and it is very sensitive for an organization to evaluate the
standard the community thinks and expects. If the community the organization
serves think formality as decent quality (in its perception) such as not having
tattoos or unusual piercing except in the ear lobe and nose, the company
should have the stricter standards of appearance where employees should not
look different with their body ‗fabricated‘ in tattoos and piercing or extremely
colored hairs in multiple colors. In such situation, the companies must have
stricter standards of appearance to meet the prospects of its clients otherwise
the companies may allow their employees to be casual.
b) The subject of appearance is considered as a personal freedom, however, once
an employee enters into the organization s/he should abide by its custom. It‘s
very difficult for a company to make two different sets of regulations in the
same company. The differences in terms of regulations might create conflict
among the colleagues. There is division between those who feel privileged and
the other forced. On the other hand, sometimes the subject of appearance
depends on the type of job one performs: such as an IT officer or a consultant
who doesn‘t need to be in the office like the other regular staff might be given
leverage and they can have relative freedom. But the employees who are in the
interface reflect the company image and they have the ‗face value‘ by which
the client judge company‘s formality in a way. Therefore, making the
difference in appearance for customer-facing employees and employees who
don‘t interact with the customers is totally the matter of emotional intelligence
of a manager.
c) The freedom of expression and appearance of latitude as the customer exhibit
depends on the type of service the company offers. If it is a company related to
fashion or cosmetics appearance latitude is almost mandatory for the
employees because it serves like an advertorial for the clients. The clients can
be attracted with the appearance of the employee and can demand similar
service. Or it is even easier for the clients to customize and improvise the type
of service or product they want to consume whether it is tattooing a body or
choosing a dress. However, the organization like bank and insurance where
various fashionable people receive service can‘t practice the similar trend
because the client might have different perception towards the organization.
Hence, the company at first should recognize its audience/consumers
expectation and perform accordingly.

891
d) Individual perspectives are never the same. The perspectives are determined
by culture, generation and location. Usually heavily tattooed body and
dreadlock hair are considered informal by the older generation in Nepali
community. Therefore, the employees with such exposes are not expected to
be decent and gentle. They are not even recruited in the offices where
formality is strictly followed. Most of the workers born and brought up in the
Nepali community have different perspective and attitude on a colleague with
tattoo or dreadlock hair. This may be because of the films, TV serials and
media representation which project such people as villain and evil power. No
matter people with customized body are intelligent, sincere and decent, first
impression and their nonverbal gesture does not communicate formality and
decency for some people. But the case might be different with an employee
who grew up in hip-hop generation with high influence of rock music. They
don‘t have different attitude such as negative towards tattooed body and
dreadlock hair. Hence, people belonging to different generation, location and
culture in Nepal have different perspectives and attitude on a colleague who
has tattoo or dreadlock hair or both.
2. Encoding and decoding are the basic processes of communication. What

do they refer? Discuss in brief the relationship between these processes. 10
Answer:
Encoding and decoding are the basic processes of communication. They are
concerned with how the sender frames the intended sense and how the receiver
perceives the sense framed by the sender. Business communication involves a
number of linguistic and non-linguistic elements such as words, phrases, discourse
markers, graphic tools, paralanguage features, instruments and so on which are
used by the participants to give a specific meaning. It is human mind that is
essentially important in making the meaning of what we have used as linguistic or
nonlinguistic device for communication.
The speaker‘s mind gives or determines particular meaning of the linguistic or
non-linguistic devices. The sender‘s mind is responsible for giving the meaning of
the language used. The process is known as encoding. With the help of linguistic,
socio- cultural, and experiential knowledge, a speaker encodes the meaning of his
or her speech, and intends that the receiver will also decode the meaning in the
same way. To be more specific, encoding is a sender‘s mental process of
presenting ideas or information in oral or written form, using sounds, letters,
words, figures or symbols.
Decoding is the receiver‘s mental process or act of assigning the meaning to the
words and symbols used by the speakers or writers. While encoding is concerned
with production, decoding is concerned with perception of discourse meaning in
context. When the message encoded by the sender is decoded properly by the
receiver, the process of communication is successful. Encoded messages are
decoded in the effective communication.
3.
a) What is business ethics? Discuss in brief economic, legal and
philosophical perspectives of business ethics. 5
b) Write a follow up letter after you faced an interview for the position of
credit manager at Chaudhari Group, Sanepa Lalitpur on 18th October,
2018. 5

892
Answer:
a) Ethics refers to the principles, rules, norms or code of conducts to govern
people. It is essential in every sector of life, profession and activity. In the
sector of business, ethics plays a vital role for effective conduct of
organization and transaction. Business ethics means obeying rules and
respecting customer values. Transparence and truth are also important aspects
of business ethics. It may incorporate social values, cultural norms, morality
and legal regularity too. It usually has three perspectives: economic, legal and
philosophical.
 Economic perspective refers to the tendency of avoiding financial abuses,
unfair business competencies, and unethical dealings. It encourages fair
business, accurate pricing, regular tax payment, and so on.
 Legal perspective refers to abiding in state rules, following regulatory
norms and conducting according to the established law and regulations.
 Philosophical perspective refers to the tendency of respecting others‘
cultural values, honor of self-esteem, mutual co-operation, etc. it
encourages truth, honesty, and loyalty in business.
b)
345 Kadaghari Marga
Kageswari Manohara, Kathmandu
19 October, 2018
Ms. Sajani Maharjan
Human Resource Manager
Chaudhari Group
Sanepa, Lalitpur
Dear Ms. Sajani:
Thank you for the opportunity yesterday to interview for the position of credit
manager for Chaudhari Group. I appreciated the time that you and other
members of your staff spent with me during the morning.
After meeting with you and your sales team, I am enthusiastic about the
position and the growth opportunities that it offers. My experience in retail
credit and previous problem-solving accomplishments, both with volunteer
work and work experience while earning my Business Administration degree
and a parallel course of CA match well with the responsibilities of the credit
manager position.
I look forward to hearing your hiring decision for the position. If you need
additional information, please phone me at 98510-76125 or send an e-mail to
shanti_sharma@gmail.com.
Sincerely,
Shanti Sharma
Shanti Sharma
a) Functional resume
b) Executive summary of report
c) Ineffective listening
d) Kinesics

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e) Characteristics of a good team

Answer:
a) A functional résumé, sometimes called a skills résumé, emphasizes
candidate‘s skills and capabilities, identifying employers and academic
experience in subordinate sections. This arrangement stresses individual areas
of competence rather than job history. The functional approach also has three
advantages: (1) Without having to read through job descriptions, employers
can see what you can do for them, (2) you can emphasize earlier job
experience, and (3) you can deemphasize any lengthy unemployment or lack
of career progress.
b) An executive summary is a brief version of the report; it restates each section
of the report in abbreviated form with an emphasis on findings, conclusions,
and recommendations. Other common names for an executive summary are
summary, abstract, overview, and synopsis. The summary saves readers time
by providing an overview of the report‘s contents. Reports that include a
synopsis in the letter of transmittal generally do not contain an executive
summary.
c) Failure to listen is a common barrier to successful oral communication.
Listening effectively is not easy. One reason listening is challenging is that
most people speak 150 to 200 words a minute but are capable of listening at
400 to 500 words a minute. This difference allows listeners‘ minds to wander
to topics other than the message. In addition, listeners may tune out a speaker
and begin thinking about how they will respond to the message. Senders can
use several methods to overcome the barrier posed by a receiver‘s poor
listening skills. Including phrases such as ―Take note of this next point; it is
particularly important‖ alerts receivers to listen carefully. Asking questions
periodically will help determine the extent of the listener‘s comprehension. In
some circumstances, a poor listener may be encouraged to improve her or his
listening skills. One of the most effective ways to remove poor listening as a
barrier to communication is to improve the quality of the message and the way
in which it is conveyed. Thoroughly analyzing the audience before designing
the message will help a sender plan, organize, and deliver an appropriate oral
message.
d) Kinesics is the study of body physical movements. It is the way our body
communicates without words and it‘s occupying a major aspect of non-verbal
communication process. When we communicate our thought process and
attitude is transmitted in the form of body movements, which reflects our inner
state of mind in our movements. Thus you can realize these expressions by
face and eyes, gestures, posture and physical appearance.
 Facial expression is the first way to communicate particularly eyes and eye
movement. We can express happiness, surprise, fear, anger and sadness
everything through our eyes.
 The gesture is our body parts especially arms, legs, hands and head convey
meaning. All these movements are made rationally along with our
speaking and not made with any intention.
 Body shape is related to our biological factor and it is natural but poster is
how we stretch our body in different styles. Body shapes are classified in
to three they are ectomorph which is thin, youthful, and tall then the

894
mesomorph is muscular fit body and finally endomorph which is fat,

round, and soft.
 Appearance includes clothes, hairstyle, jewelry, cosmetics and such styles,
which we include in our daily life by which we communicate how we want
to project our self.
e) Here are some characteristics of a good team:
 Good teams are adaptable to one another.
 Good teams have high energy.
 Good teams stay focused on their long-term goals.
 A good team learns the importance of being selfless.
 Its members are committed.
 Good teams communicate well with one another.

895
Marketing
Suggested Answer
Roll No……………. Maximum Marks –50
Time Allowed –3 Hours
Marks
5. Read the following case carefully and answer the questions given below: (45=20)
Saugat, a MBA from School of Management, Tribhuvan University,
thinking about running own business rather than being employed. After
graduating from University, he had meeting with his school friend
Prakash, graduated from Rampur Campus. Both are from middle class
family. They thought instead of doing a job, they will launch fresh
vegetables in market. Having learnt of the future conventional foods, they
decided to venture into cultivation of mushrooms.
Mushrooms are known to be the best alternative food for vegetarians. For
them fund raising was a serious handicap for mass production. However,
the first trial batch of mushrooms that they produced was bought by Stupa
Hotel in Kathmandu.
Further, the hotel placed orders for supply of 20 kgs every day. Now
mushroom industry is run by small entrepreneurs, like Saugat and Prakash.
Another big player M/s Thapa Mushrooms, equipped with cold storage
facility was more interested in the export market. Saugat and Prakash have
set their sights high. They aim to sell mushrooms in a very big way all
over the country. Mushrooms have a great market potential and is a
perishable food.
Questions
a) How do you support that choosing for mushroom was good product
choice?
b) How will you advise them, as how to increase the consumer awareness
about this food?
c) How do you suggest them to differentiate their consumer awareness to
two different market segments: Institutional sale and Individual sale?
d) What would be your suggestions for distribution channel for
mushrooms?
Answer:
a) Mushroom farming is good product choice they have made for their new business. Some
of the reasons are listed below, which show the choice for mushroom is right decision.
Firstly, Nepal has very suitable climate for mushroom farming. Many local farmers are
involved in farming of mushroom with lack of technical knowledge. In this sense,
Prakash who is agriculture graduated can fulfill this gap and can be updated. Secondly,
this farming can be run with low capital, which is suitable for the initial stage of
business. Third, the demand of Mushroom in Nepalese market has been growing in
increasing trend in recent years. This is additional product for vegetarian. In addition,
Nepalese society is gradually being aware from disadvantages of being non-vegetarian.

896
b) Consumer awareness can be created by test marketing. Through sales persons and
customer response to the product.
stores. Awareness can also be created through outdoor publicity such as wall hoardings,
banners, insertions in news-papers etc. Brand name of the company along with the
product can also be highlighted to the customer by using the concept of event marketing.
c) Institutional sales may include hotel, restaurants and industrial/college canteens; and
Individual sale refers to household.
For institutional sales, the possible awareness is approaching to hotel industry can be
made and product benefit can be shown to convince the customer. Mushroom related
recipe booklet can be given to them for use.
For individual sales, they can approach the T.V programs for ―Food show‖ to show
different recipes of Mushrooms in their shows.
Furthermore, dealer push can be done through sales promotion campaign. Press meetings
can be a way to consumer awareness. Editors, journalists of newspapers having maximum
circulation can be contacted and samples to be distributed to them (such as 250 gm or 100
gm packs). Finally, packaging should be attractive.
This can be suggested that many of awareness program can be used for both sales.
d) Mushroom is perishable product, company should go for faster and effective distribution
network h
local market and distribution through road transport to urban markets.
Distribution channel can be more specific for different market segment. For instance, zero
layer channel could be used for industrial sale and others channels for household.
6. What is marketing concept? Discuss basic principles of modern marketing

concept. (4+6=10)
Answer:
The marketing concept is the key to achieve organizational goals through the determination
of needs and wants of target markets and to deliver the desired satisfaction more effectively
and efficiently than the competitors.
Principles of marketing concept:
 Target Market: A target market is defined as a set of actual and potential buyers of a
product, service, or idea. A buyer, who has interest in the product, income and willingness
to buy, can broadly be called as potential buyer. However, it might not be possible for the
marketer to target all of them. Thus, a small portion of potential market might become part
of the target market.
 Customer Oriented: In this approach, product-design, features, quality, price, production
schedules, advertising, distribution channels, promotion of the product and personal selling
are all aimed at satisfying the customer. Customer orientation approach requires the
gauging of needs of customer from customers‘ point of view and not from the view of
marketing personnel.
 Integrated Marketing: It requires coordination and cooperation within the department.

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Satisfaction of the customer should be the main concern of the organization and all efforts
should be geared to this end. All marketing functions viz, marketing research, advertising,
pricing, promotion, distribution etc. are organizationally coordinated under the marketing
department to satisfy customer needs. Marketing department cannot do its task effectively
and efficiently if production department does not produce goods of the required quality at
a feasible cost and if finance department does not provide adequate capital. The
interdependence of various departments in an organization cannot be overlooked.
 Profitability: Business organizations are set up to earn profit. Huge funds are invested in
them, some of which are borrowed and are to be repaid. Therefore, a business firm must
get a reasonable return on the investment. Profit is one of the main objectives of an
organization. Therefore, notion of satisfaction of customer needs, which is the most
important principle of the marketing concept, does include the prospects of earning
reasonable profits. Therefore, the marketing concept holds that the firm should seek profit
making opportunities and strive to find profitable ways to satisfy customer needs.
7.
a) What is new product? Why is it important? Briefly explain the new
product development process. (1+1+3=5)
b) What are the functions of promotion? Discuss the factors affecting the
determination of the promotion mix. (3+2=5)
Answer:
a) New product refers to original products, improved products, modified products and
new brands that the firm develops. It is that, which organization produce for the first
time and other way new product is that which customer perceives as a new by its
different characteristic.
It is important for every organization as single product cannot satisfy customer
forever. Because customer‘s needs, desire, taste and preferences are always
changeable in nature, new product is essential to be competitive in market.
New product development process set outs a series of stages that new product
typically goes through, beginning with idea brainstorming and ending with preparing
for launch.
Product Idea Brainstorming
The first step is to generate an idea for the product. Employees, especially those who
deal with customers regularly, are major source for product ideas. In addition,
customer survey could be conducted for feedback on existing products. Marketer has
to examine the industry to see whether there are areas where useful products do not
exist. Online survey for customers or social media fans would be the good techniques
for brainstorming. And all ideas for a new product are to be listed.
Evaluate the Ideas
Listed product ideas are to be shared with the appropriate decision-makers in the
company, such as the management team. Pros and cons of each idea are to be
discussed and narrow the list to just a handful of the best ideas, based on their
potential to generate revenue, as well as the time and resources available to actually
create the products.
Market Evaluation
Feedbacks are to gathered from customers, employees and partners on which idea is
most appealing. Whittle the list to just one or two product ideas.

898
Analyze the Competitive Situation

Remaining product idea from a business perspective is to be analyzed. In this course,
competition between similar products, and demand for the product are to be
determined. In addition, there is need of estimation of costs affiliated with the
product; such as development costs and operational costs, to help determine the profit
margin.
Prototype and Marketing
Developing a prototype of the product is next step, which is to be shared with a
handful of good customers and key partners aiming to gain feedback. The marketing
team should use that feedback to craft marketing messages and developing marketing
campaign ideas, such as email campaigns, websites, billboards or posters.
Market Testing
In market testing adjustments to the prototype is expected. Then, prototype is
modified into a new version, if necessary. In fact, a small product is released in select
areas aiming to examine potential sales status, evaluate the price and effectiveness of
the marketing message. A small launch, expected in market testing, helps determine
what needs to be done before an official launch.
Prepare for Launch
Prior to launch, volume of products to produce are to be determined based on market
testing and demand for the product. In addition, advertise and speak to product
distributors about ordering the product to be done, if the product will be sold in stores.
b) Functions of Promotion
So, main functions of promotion are as follows:
a) Informing
b) Persuading
c) Reminding
d) Reassuring
a) Informing
The first function of promotion is to give information about their goods or services
to middlemen, final consumers and industrial users. Even a very useful product
cannot get success in market if nobody gets any information about it. So, giving
information about the product to prospective consumers is one of the important
functions of promotion.
b) Persuading
Persuading is to motivate customers to buy products. It becomes essential for
producers or sellers to make persuasion program under promotion due to intense
competition among different industries producing similar types of products. Only
information about goods or services can do nothing. The sellers should give
information about the benefits, quality, utility, price etc. of products to make
consumers confident that their needs will be satisfied with the goods or services.
c) Reminding

899
The consumers should be reminded from time to time of the availability,

satisfaction, utility, benefits etc. of products. Because of cut-throat competition in
production and marketing, every firm should always conduct promotional
programs to remind the customers of their products and exist in markets.
d) Reassuring
After buying a product, the customers may not be confident in their buying
decision. They may feel whether they took right or wrong decision to buy a certain
product. So, promotion plays an important role to make them confident about the
quality, utility and benefits of the goods they have bought. This makes them free
from worry about the brand of the product, increases brand loyalty in them and
improves image of the firm. This is called reassuring.
Factors Affecting Determination of Promotion Mix
Following factors affect promotion mix.
 If the objective is to build awareness level among the buyers, the promotion mix is
dominated by advertising and publicity.
 If buyers are already aware of the product but do not exhibit liking, preference and
conviction for the brand, the marketer needs to put more emphasis on personal
selling which is more persuasive than advertising.
 If buyers have favorable attitude toward the brand, but do not show clear purchase
intentions, sales promotions may provide incentives to undertake immediate
actions. Buyers can be better reminded by display advertisements.
The following factors affect the determination of promotion mix:

a) Size of the promotion budget
The size of the promotion budget determines the selection of the promotion mix.
Advertising requires heavy expenses as it has to be launched for a longer time period.
Similarly, maintaining large sales force for aggressive personal selling campaign is
suitable for financially strong firms. Firms with small promotion budget prefer to use
a combination of dealer promotion, on the spot displays, pamphlets etc.
b) Nature of the Market
The structure of the market, particularly its geographical coverage affects the design
of the promotion mix.
 In a small market, personal selling, consumer promotions and local level
advertising is a good promotional blend.
 In large markets, a blend of advertising, dealer promotions and consumer
promotions are more effective.

900
 Trade customers such as wholesalers and retailers are better approached with
personal selling while consumers can be accessed through advertising.
 In industrial and institutional markets, advertising is less important than personal
selling
c) Nature of the Product
 Convenience products are generally mass merchandised and supported with heavy
advertising by the manufacturer.

 Shopping products require more emphasis on personal selling than on advertising.
 Specially goods and services are mostly sold through good public relations.
 Specially goods and services are mostly sold through good public relations.
 Although most of the industrial products are largely sold through personal selling,
operating suppliers are extensively advertised.
 Level of social risk involved in the purchase and ownership of the product also
affects the promotion blend. Purchase of convenience items involves no social risk
for the buyer. In high social risk products, such as jewelry and clothing some
personal selling has to be added to high image advertising.
 Items that are a relatively small part of the organization's budget or the buyer's
budget do not require salesperson to pursue and close the sale. If the product is
expensive, technically complex and requires after sales services, personal selling
is more suitable and productive.
d) Product life Cycle
Promotion blend changes as the product moves from one stage to another stage of the
product life cycle.
 In the introduction stage, personal selling and advertising go together.

 During the growth stage, personal selling has little use while advertising is
continued with a change in its focus from awareness creation to building
conviction among buyers.
 In the maturity stage, sales promotion plays the dominant role and advertising is
used only to support the sales promotion campaigns.
 During decline stage, all forms of promotion become irrelevant.
8. Briefly explain the following: (5×2=10)

a) E-marketing
b) Marketing mix
c) Market Research Process
d) Zero Level channel structure for consumer good
e) Macro environment

901
Answer:
a) E-marketing:
Electronic Marketing (E-Marketing) can be viewed as a new philosophy and a modern
business practice involved with the marketing of goods, services, information and
ideas via the Internet and other electronic means.
In this respect most of the researchers misused the term E-Marketing; majority of
researchers are using the term: E-Marketing/ Internet Marketing / E-Commerce/E-
business as equivalents or a different wording for the same meaning, which is
incorrect because they are different.
For example, E-Marketing has broader scope than internet marketing since Internet
Marketing (IM) refers only to the Internet, World Wide Web, e-mails. While E-
Marketing includes all of that plus all other E-Marketing tools like: Intranets,
Extranets and mobile phones to satisfy customers and ultimately to get profits.
b) Marketing mix
Marketing mix is a set of controllable, tactical tools,-product, price, place and promotion-
that the firm blends to produce the response it wants in the target market. The marketing
mix consists of everything the firm can do to influence the demand for its product.
c) Market Research process:

The marketing research process is a six-step process are as follows:
a) Identifying and defining the problem/opportunity.
b) Planning the research design
c) Selecting the sampling procedure
d) Data Collection
e) Evaluating the data
f) Preparing and presenting the research report.
Involving the definition of the problem being studied upon, determining what
approach to take, formulation of research design, field work entailed, data preparation
and analysis, and the generation of reports, how to present these reports, and overall,
how the task can be accomplished.
d) Zero Level channel structure for consumer good
The channel in which no intermediaries exist between producer and consumer is
called Zero level channel. Producers distribute their goods to consumers through
multiple shop and chain stores. Goods are distributed through sales representatives‘
mail order, tele-marketing and online marketing.
e) Macro environment
The macro environment includes all the factors that can influences the organization
and its marketing mix but that are out of their direct control. A company does not
generally influence any laws, population or economy. It is continuously changing
and the company needs to be flexible to adapt. According to Philip Kotler, ―Macro
Environment consists of the large social forces that affect the micro environments –
demographic, economic, natural, technological, political and cultural forces. Macro
environment provides opportunities and threats to the marketing.

902
Suggested Answer - June 2018
Paper 6:
Business Communication & Marketing
1012
Part A Business Communication
1013

Marks
Section -'A'
Dr. Chandani Barma is the CEO at one of the reputed banking companies in Nepal. She
was appointed for the post due to the rich international exposure and experience that she
had attained in the banking sector. Right from her appointment she has realized that the
company is not making desirable progress despite the proactive role of the entire team of
staff and directors. She has recently investigated from her preliminary survey that
succeeding at her workplace has a serious threat due to the subtle conflict among the
promoters of the bank that constitute the Board of Directors. The policies that they‘ve
adopted are not perfectly matching with the contexts of the new-era market. Neither have
they been able to launch the innovative and fascinating programs for their clients and
customers.
During informal communication, they often blame each other of not being ready for
taking risks for the promotion of the bank. But, in the Board meeting, neither of them
spell out clearly about the challenges and changes they desire to have in their company. In
this condition, the CEO, Dr. Barma has had a proposal approved from the BoD to carry
out a comprehensive survey among the shareholders of the company about their desires to
have challenges and changes in the company.
Now, Dr. Barma is required to develop research tools, collect data, analyze data and
prepare an analytical survey report with useful findings and recommendations.
Questions:
a) Dr. Barma is required to prepare an analytical report. What are the basic features of
this type of report? What are its major components?
b) Prepare a set of questionnaire for the survey as one of the tools of data collection.
c) Write two objectives and the statement of problem that Dr. Barma would present in
her report.
d) How is information organized in this report? Illustrate.
Answer:
a) An analytical report is usually a research report. It is also called investigative report. It
is prepared on the basis of the information obtained from respondents of the related
field. It requires basically the research tools such as questionnaires, interview, focused
group discussion, observation report, tests, discourse analysis, etc. Scientific analysis
and possible interpretations of the data are made in this type of report.
The basic components of an analytical report are:
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 Introduction
 General background
 Statement of problem
 Objectives
 Methodology
 Analysis and interpretation
 Findings, conclusion and recommendations.
b) Questionnaire for the shareholders
Tick the best option. (SA: strongly agree, A: agree, NA: not agree)
Opinions/attitudes SA A NA
1. I prefer risks and challenges in business; they help to
grow the company.
2. Risks are useful to motivate me to work and
concentrate on duty.
3. I don‘t like to be tied up by business commitments and
relationships. It‘s good to keep on what is with us
conventionally.
4. I‘m ready to allow the BoD to invest excessively on new

technology and globalization of market.
5. I don‘t care whether one failure in business loses

everything. So, our bank must invest as required on the
innovative activities.
6. I‘d like to follow the same pattern of business since it

has to bear less or no risk.
7. …
c) The objectives of the report
 To present the accurate views of the shareholders of the bank towards taking
risks in the growth of business;
 To recommend the BoD about adopting useful strategies for business growth
with certain innovations
Statement of problem
Siddhi Bank Pvt. Limited has been launching a number of financial programs and
activities including saving, loans, e-remit, e-banking, etc. The recent perspectives and
practices of the banking corporate have been rapidly and vastly changing. In the fast
growing era of this sector this bank has not been able to attain relatively the expected
success. In this particular situation, a mini-research among the shareholders became
urgency of time so that it could give useful guidelines to the executives and Board of
1015
Directors in achieving the corporate goals. This report has been prepared as a result of
this urgency. It has been prepared after a very systematic survey research.
d) The information can be organized systematically by categorizing it into different issue

based themes such as options for investment, desires to update the IT service, desires
to take risk, desire for changes, desires for no-risk, and so on. Then the information is
tabulated to ensure more systematic data for the report. The data can be organized and
analysed using tables, graphs, statistical tools such as percentage, mean, standard
deviation, etc. The irrelevant ideas/options are avoided from analysis. While
organizing the data, the extremely high level desires are arranged in one part, the
average level of remarks in the other, and the low level desires for changes and
challenges are organized in the different sub-section.
2. What are the prefatory parts of a report? Enumerate chronologically and

explain each of them in brief. 10
Answer:
Prefatory parts are front-end materials that provide key preliminary information in the
report so that readers can decide whether and how to read the report. Many of these
parts—such as the table of contents, list of illustrations and executive summary—are
easier to prepare after the text has been completed because they are based on the main
text of the report. Report prefatory parts are enumerated as:
1. Cover: Many companies have standard covers for reports, made of heavy paper and
imprinted with the company‘s name and logo. If a company doesn‘t have such covers,
you can usually find something suitable in a good stationery or office supply store.
Look for cover stock that is attractive, convenient, and appropriate to the subject
matter. Covers are typically labeled with the report title, the writer‘s name (optional),
and the submission date (also optional). Think carefully about the title. You want it to
be concise and compelling while still communicating the essence of the subject
matter.
2. Title Fly and Title Page: The title fly is a single sheet of paper with only the title of
the report on it. It adds a touch of formality, but it isn‘t really necessary, and it
consumes additional paper. The title page includes four blocks of information: (1) the
title of the report; (2) the name, title, and address of the person, group, or organization
that authorized the report (if anyone); (3) the name, title, and address of the person,
group, or organization that prepared the report; and (4) the date on which the report
was submitted. On some title pages, the second block of information is preceded by
the words Prepared for or Submitted to, and the third block of information is preceded
by Prepared by or Submitted by. In some cases, the title page serves as the cover of
the report, especially if the report is relatively short and is intended solely for internal
use.
3. Letter of Authorization and Letter of Acceptance: If you received written

authorization to prepare a report, you might want to include that letter of authorization
(or memo of authorization) in your report. If you wrote a letter of acceptance (or
memo of acceptance) in response to that communication, accepting the assignment
1016
and clarifying any conditions or limitations, you might also include that letter here, in
the report‘s prefatory parts. In general, letters of authorization and acceptance are
included in only the most formal reports. However, consider including one or both if a
significant amount of time has passed since you started the project or if you do not
have a close working relationship with the audience. These pieces help make sure
everyone is clear about the report‘s intent and the approach you took to create it.
4. Letter of Transmittal: The letter of transmittal (or memo of transmittal), a specialized

form of a cover letter that is usually positioned right before the table of contents,
introduces your report to the audience. This piece says what you would say if you
were handing the report directly to the person who authorized it, so the style is often
less formal than the rest of the report. If your readers are likely to be skeptical of or
even hostile to something in your report, the letter of transmittal is a good place to
acknowledge their concerns and explain how the report addresses the issues they care
about. Also, if you need to convey sensitive information to selected audience
members, you can opt to include the letter in just those copies. Depending on the
nature of your report, your letter of transmittal can follow either the direct approach
for routine or positive messages or the indirect approach for negative messages. Open
by introducing the report and summarizing its purpose, with a statement such as ―Here
is the report you asked me to prepare on. . . .‖ The rest of the introduction includes
information about the scope of the report, the methods used to complete the study,
limitations, and any special messages you need to convey. You may also want to
acknowledge help given by others.
5. Table of Content: The table of contents indicates in outline form the coverage,
sequence, and relative importance of the information in the report. The headings used
in the text of the report are the basis for the table of contents. Depending on the length
and complexity of the report, you may need to decide how many levels of headings to
show in the contents; it‘s a trade-off between simplicity and completeness. Contents
that show every level of heading—down to the fourth or fifth level in detailed
reports—identify all the sections but can intimidate readers and blur the focus by
detracting from your most important message points. Where the detailed table of
contents could have dozens or even hundreds of entries, consider including two
tables: a high-level table that shows only major headings, followed by a detailed table
that includes everything. No matter how many levels you include, make sure readers
can easily distinguish between them.
6. List of Illustration: If you have more than a handful of illustrations in your report, or
if you want to call attention to them, include a list of illustrations after the table of
contents. For simplicity‘s sake, some reports refer to all visuals as illustrations or
exhibits.
7. Synopsis or Executive Summary: A synopsis is a brief overview of a report‘s most

important points, designed to give readers a quick preview of the contents. It‘s often
included in long informational reports dealing with technical, professional, or
academic subjects and can also be called an abstract. Because it‘s a concise
representation of an entire report, it may be distributed separately to a wide audience;
1017
interested readers can then request a copy of the entire report.
3.
a) What is the communication process? Explain each of the processes. 5
b) Construct a resume for the position of Staff Accountant Analyst to
apply in one of the companies in the United States. In the resume
present the candidate's ability to contribute to a new employer. Make
sure that the employer could easily scan through the resume to find
sections of interest. 5
Answer:
a) Communication is ―the transmission of information and meaning from one individual
or group to another.‖ The crucial element in this definition is meaning.
Communication has as its central objective the transmission of meaning. The process
of communication is successful only when the receiver understands an idea as the
sender intended it. The communication process generally involves eight steps:
1. Sender has an idea: The form of the idea may be influenced by the sender‘s
mood, frame of reference, background, culture, and physical makeup, as well as
the context of the situation.
2. Sender encodes the idea in a message: Encoding means converting the idea into
words or gestures that will convey meaning. A major problem in communicating
any message verbally is that words have different meanings for different people.
That‘s why skilled communicators try to choose familiar words with concrete
meanings on which both senders and receivers agree.
3. The sender produces the message in a transmittable medium: with the appropriate
message to express an idea, the sender now needs a communication medium to
present that message to the intended audience. Media for transmitting messages
can be divided into oral, written, visual, and electronic forms.
4. Message travels over a channel: the medium over which the message is
transmitted is the channel. Messages may be sent by computer, telephone, letter,
or memorandum. They may also be sent by means of a report, announcement,
picture, spoken word, fax, or other channel. Because both verbal and nonverbal
messages are carried, senders must choose channels carefully. Anything that
disrupts the transmission of a message in the communication process is called
noise. Channel noise ranges from static that disrupts a telephone conversation to
spelling errors in an e-mail message. Such errors damage the credibility of the
sender.
5. The audience receives the message: if the channel functions properly, the message
reaches its intended audience. However, mere arrival at the destination is no
guarantee that the message will be noticed or understood correctly. Many
messages are either ignored or misinterpreted as noise.
6. Receiver decodes message: the person for whom a message is intended is the
receiver. Translating the message from its symbol form into meaning involves
decoding. Successful communication takes place only when a receiver
understands the meaning intended by the sender. Such success is often hard to
1018
achieve because no two people share the same background. Success is further
limited because barriers and noise may disrupt the process.
7. The audience responds to the message: by crafting messages in ways that show
the benefits of responding, senders can increase the chances that recipients will
respond in positive ways. However, whether a receiver responds as the sender
hopes depends on the receiver (a) remembering the message long enough to act on
it, (b) being able to act on it, and (c) being motivated to respond.
8. Feedback travels to sender: the verbal and nonverbal responses of the receiver
create feedback, a vital part of the entire communication process. Feedback helps
the sender know that the message was received and understood. Senders can
encourage feedback by asking questions such as, ―Am I making myself clear?‖
and, ―Is there anything you don‘t understand?‖ Senders can further improve
feedback by delivering the message at a time when receivers can respond. Senders
should provide only as much information as a receiver can handle. Receivers can
improve the process by paraphrasing the sender‘s message.
b)
Rabindra Sing Yadav
137 Paneku Marga
Siphal, Kathamndu
Home: (0977) 01-4456789
Cell Phone: 9808967765
Email: rabindra_yadav@gmail.com
International Experienced international accountant and financial analyst with proven leadership, planning
negotiating, and intercultural communication skills. Demonstrated ability to improve process
Accounting efficiency and reduce operating costs.
Management
Staff Accountant Analyst
Inter-continental Imports: Kathmandu, Nepal
 Prepare accounting reports for wholesale giftware importer
Experience
 Adult financial transactions with suppliers in 8 countries of
SAARC
06/2010  Serve as project and team leader
to present  Created a computerized model to adjust accountants for
fluctuations in currency exchange rates
 Negotiated joint-venture agreements with major suppliers
in India and China
 Implemented electronic funds transfer for vendor
disbursements, improving cash flow and eliminating
payables clerk position
03/2007 Staff Accountant

to 06/2010 Royal Agricultural Chemicals: Biratnagar, Nepal
 Handled budgeting, billing, and credit-processing
functions
 Audited travel & entertainment expenses for 30-members
Nepali sales force
The Institute of Chartered Accountants of Nepal
 Helped launch an online system to automated all 97
accounting functions, improving reporting accuracy by 65
%
1019
Education Master of Business Administration with emphasis

08/2006 in International business
George Mason University, Fairfax, Virginia, USA
07/2004
Bachelor of Business Administration, Accounting
University of Texas, Austin, Texas, USA
06/2000
Chartered Accountant
Special Skill Cultural  Fluent in English, Chinese and Hindi

 Extensive business contacts in South Asia
Technical  Proficient with a wide range of financial software
and systems, including Excel, Access, Microsoft
Dynamics, and SAP Business One
Reference Available on request

a) Corporate social responsibilities
b) Ethnocentrism versus Cultural relativism
c) Audience-centered approach
d) Channel breakdowns
Answer:
a) Corporate social responsibilities
Corporate social responsibility (CSR) is an essential component of an ethical and
responsible business organization. It is a business movement in which commercial
organizations address the social issues identified through different sources, and run
the programs for social welfare. They invest certain amount of money so that their
business as well as the society where they have to survive can grow together.
Different infrastructural activities, educational programs, public health programs,
sports events etc. are conducted by the business organizations as their responsibility to
the society.
b) Ethnocentrism versus Cultural relativism

Ethnocentrism is the tendency to think of your own culture as the norm and to defend
your culture as the only valid worldview. It is a common phenomenon and it is found
in many cultures.
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There is a simple way to explain ethnocentrism and how it works. Imagine a man who
drives his car every day and has been taught to stay on the right side of the street
when he does so. This man then goes to a country where people drive on the left side.
After he has returned home he goes to his friend's house for dinner and then he says,
―It is incredible, all the people drive in the opposite way. They all drive on the wrong
side!‖
Cultural relativism is somehow an opposite concept. We have seen that every culture
has the natural tendency to adopt a particular worldview. A cultural relativist is a
person who believes that every culture has to be understood in his particular context
and that cultures should not be thought as universally valid worldviews but as
particular expressions of a people.
c) Audience-centered approach
An audience-centered approach involves understanding and respecting the members
of audience and making every effort to get the message across in a way that is
meaningful to the audience. This approach is also known as adopting the ―you‖
attitude, in contrast to messages that are about ―me.‖ Learn as much as possible about
the biases, education, age, status, style, and personal and professional concerns of
your receivers. If you‘re addressing people you don‘t know and you‘re unable to find
out more about them, try to project yourself into their position by using common
sense and imagination. This ability to relate to the needs of others is a key part of
emotional intelligence, which is widely considered to be a vital characteristic of
successful managers and leaders. The more one knows about the people you‘re
communicating with, the easier it will be to concentrate on his/his needs—which, in
turn, will make it easier for them to hear your message, understand it, and respond
positively.
Sometimes the channel simply breaks down and fails to deliver the message at all. A
colleague you were counting on to deliver a message to your boss might have
forgotten to do so, or a computer server might have crashed and prevented your blog
from updating. Everyone in an organization can help minimize barriers and
distractions. In any situation, a small dose of common sense and courtesy goes a long
way. Turn off that mobile phone before you step into a meeting. Don‘t talk across the
tops of other people‘s cubicles. Be sensitive to personal differences, too. For instance,
some people enjoy working with music on, but music is a huge distraction for others,
so use headphones. Finally, take steps to insulate yourself from distractions. Don‘t let
messages interrupt you every minute of the day. Instead, try to set aside time to attend
to messages all at once so that you can focus the rest of the time.
1021
Part B : Marketing
1022

Marks
Section -'B'
XYZ supermarket stands out as one of the most valuable brands in Nepalese supermarket
industry in a very short span since its inception. The first store was launched in one of the
finest mall located in Kathmandu valley, covering an area of 11,000 Sq. Ft. It has been
recognized for its innovation in introducing super marketing to the Nepalese market with
a very different and organized approach. XYZ supermarket has all the material including
groceries and vegetables for the people to shop at one place it stands out as being the first
in Nepal to provide the VALUE AND SAVINGS concept to its shoppers. The XYZ
includes the following features.
 Easy shopping: Easy to search items at all pages
 Big save: every item has shopping mall and wholesale mart (B2B). Shopping mall is
for consumer. Wholesale mart is for merchants or bulk or discount shopping
 Easy to set up your store: set up a new store in our shopping mall by suing our
wholesale mart, valuable goods source. You do not have to spend time to find
wholesaler.
 low cost AD: advertise your goods or website at low cost (big size slide head banner
only), visit low cost AD page
 You can sell without fee: why pay so much selling fee? Advertising fee is free as long
as you buy from XYZ wholesale network visit free AD page.
 Easy access: easy access to xyz.com through Google, Bing, Yelp, Face book,
LinkedIn
XYZ department store is planning a major expansion drive in the valley after three years
of successful run in Kathmandu. The retail store is planning to open 25 stores within
2018. XYZ has become one of the well-known retailer stores. "Within the first three
years of its operation, XYZ has evolved as one of the most trusted brands in the Nepali
market. We have been receiving encouraging response from our consumer and this has
prompted us to extend our service areas, "said Antim Ranjit, marketing and branding
manager at XYZ. He added that the company had identified probable places for its
expansion. "XYZ has been known for the availability of quality foods and grocery
product. Therefore, we will maintain our focus on this segment," Ranjit said.
The new store will feature around 25,000 varieties of product in the initial stage. Apart
from this, the store will have a separate compartment for meat from where people can
buy mutton and chicken.
An ATM lounge and food stalls in the 'Thela" concept will be other added attractions.
"We will put on our best effort to make sure that the store becomes successful in catering
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to their needs, ' said Ranjit. After having selected a smaller area for the new stores, the
company said that it was planning to expand in every small nook and corner of the
Kathmandu valley to cater to the demand of people from all economic groups. 'Compared
to our previous two stores, we have chosen a smaller space, "said Ranjit. XYZ is also
planning to open in other locations. "We will have relatively larger stores in these
places," Ranjit said. The company has so far distributed 45,000 privilege cards to its loyal
customers and the figure is increasing daily. Even though XYZ refused to disclose its
investment in the upcoming projects, it is said that it would be spending substantially on
these world class stores.
a) What are the major retail marketing strategies adopted by the XYZ?
b) Explain the retailing processes of XYZ.
c) State and explain the major features of XYZ. Relate them to product mix of retail
marketing.
d) What are the retail marketing mixes that the XYZ should implement to gain
competitive advantage?
Answer:
a) The major retail marketing strategies adopted by the XYZ is multi-channel marketing. It
is a chain store which has operated supermarket, department store, online store, shopping
mall, wholesale mart etc. in various locations of Kathmandu Valley. Similarly,
adoption of different and organized approach for innovation is the another strategy of
XYZ. Again, value and savings concept to its shoppers is the customer oriented strategy
adopted by the company. The consumers were provided by the easy access at one place
for purchase. XYZ facilitates the online shopping facilities through Google, Bing, Yelp,
Face book, LinkedIn. The firms also created the value and adoption of saving concept for
customer. They also provided the bulk buying discount facilities to their regular
customer. Also, the supermarket provided the wide product varieties, about 25000
product varieties.
b) So far, the retailing processes of XYZ is concerned, it has adapted two different
process, i.e. offline store and online store. In offline store, customers directly pay visit
to stores to buy their needs under single roof. Customers can make a choice by
comparing among the varieties of available products. Physical presence of customer in
the store is one of the key features of store retailing. Regarding offline store, they have
operated super market, department store and shopping mall where retail buying process
is quite different because of method of operation of retail business.. Secondly, online
shopping through mart‘s webpage is another retail buying process. Under this retailing
process customers are allowed to search all items available at all pages where they can
save their time by avoiding personal visit at stores. In online shopping, consumers
access to xyz.com through Google, Bing, Yelp, Facebook and LinkedIn.
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c) The XYZ has been operating the retail business from different perspectives where
customer can purchase from both personal visit to store for buying and online buying
without visiting actual store. With respect to personal visit the store has provided value
and saving concept to customer by making available all merchandises at one place. The
store has retail and whole mart where customer can save by bulk and discount shopping.
This has also been characterized by easy setting up store at mall for B2B purpose.
Online shopping has been characterized for easy access through different search engine,
easy shopping as easy to search all items at all pages and advertisement facilities or free
ad page on store‘s blog. The store has also equipped with wide product varieties.
The features discussed above can be reflected in terms of product mix. Retailers
provide stores full of products to suit every consumer‘s needs to meet expectations of
varied customers. It offers all the materials including groceries and vegetables, meats.
It also provides ATM lounge and food stalls in Thela concept. The store has also
separate mart for end consumer and business consumer. Besides company‘s webpage is
also equipped with easy shopping as it is easy to search all items.
d) Retail is a service business. Thus, it should include all the seven P‘s while designing
marketing mix to gain competitive advantage. Product, place, price, promotion, people,
process and physical evidence all elements are fundamentally important to retail
management to gain competitive advantage.
In the case, XYZ has operated supermarket, department store, shopping mall, wholesale
mart and online store. First of all, there must be the same retail format and uniformity in
retail operation. If they use different retail format, at that time it is very difficult to
positioning their retail business.
As they are extending their outlets within Kathmandu valley, locations of stores could
be the major decision for its marketing mix. The store should target the area where
proximity of customer is very high. Besides distribution channels should be decided
very carefully, that ease store to manage inventory level smoothly.
Finally, the retailer has already adapted selling through internet, which is being
considered as very important promotional tool. This is the good method of marketing
communication that maintains the link with customers. However, the store should not
rely only on internet as promotional tool.
6. What is product line strategy? Discuss the trading up and trading down
strategies with suitable examples. (4+6=10)
Answer:
If any company offers more than one product items which are closely related, is popularly
known as product line strategy. For example, Nebico Biscuits offers varieties of biscuits
such as Digestive, Marie, Coconut, Glucose, Thin arrowroot, Salty, Creamy biscuits etc.
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Companies make decisions that concern either adding new items in existing product lines,
deleting products from existing product lines, or adding new product lines. Another aspect
relates to upgrading the existing technology either to reduce the product costs or to improve
quality, for stretching (downwards, upwards, or both ways), or line filling. Among them,
trading up and trading down strategies are discussed as follows:
Trading Down or downward Line Stretching: If any company adds new product item in
their product line which is low price low quality in comparison to their existing products, it
is known as trading down or downward line stretching strategy. Companies sometimes
introduce new products with an objective of communicating an image of technical
excellence and high quality and locate at the upper end of the market. Subsequently, the
company might stretch downwards due to competitor‘s attack by introducing a low-end
product in response to competitive attack, or a company may introduce a low-end product
to fill up a vacant slot that may seem attractive to a new competitor. Another possibility is
that market may become more attractive at low-end due to faster growth rate. Downward
stretch sometimes poses risks. Low-end competitors may attack by moving into high-end,
or for a prestige-image company introduction of a low-end model may adversely affect its
product-image.
For example, Tata Nano car offered to price sensitive customer by Tata company is best
example of trading down. Similarly, CG Foods Private limited, producer of popular brand
Waiwai has added Mama instant noodle which is low price low quality in comparison to
Waiwai is the best example of trading down strategy.
Trading Up or Upward Stretching: If any company adds new product item in their product
line which is high price high quality in comparison to their existing products, it is known as
trading up or upward line stretching strategy. In this situation, companies operating at low-
end may opt to enter high- end because of better opportunities as a result of faster market
growth, or the need to create an image of full line company. There may be certain risks
associated with upward line stretching. These may include prospective customers‘
perceptions that the newcomer in the high-end category may not produce high-quality
products, or competitors already well-established in the high-end market may retaliate by
introducing items in the low-end of the market.
For example, Maruti Udyog introduced its medium-priced models such as Maruti Zen,
Maruti Esteem, Wagon R, Alto, and Swift after it had entered the market with its low-end
Maruti 800 and Maruti Omni. Toyota introduced its Lexus luxury car as a standalone
product (with no outward link to Toyota) for just this very reason. It did not want it to be in
any way affected by Toyota‘s no-doubt superb, but mass market image. Similarly, a
Tribhuvan University affiliated college which has been offering BBS is now going to offer
BBA, BHM or BBM with premium fee structure. It is called trading up strategy because
BBA, BHM or BBM is considered as high price high quality program in comparison to
BBS.
7.
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a) ―Understanding buyer‘s behavior is a major input for marketing

strategy.‖ Justify this statement. 5
b) Give the meaning of marketing intelligence system and also point out
the sources of marketing intelligence system. 5
Answer:
a) Behavior shown by consumers while they are purchasing, consuming or disposing any
product or services is called buyer‘s behavior. It involves searching for, evaluation of,
purchase and using the product. Behavior also covers the post purchase behavior of
product – i.e. consumer satisfaction or dissatisfaction where it involves disposal of
product.
On other hand, the aim of marketing is to meet and satisfy target customers‘ needs and
wants better than competitors. In this respect, understanding buyer‘s behavior is most
important for every marketer as it is the study of how individuals, groups, and
organizations select, buy, use and dispose of goods, services, ideas, ore experiences to
satisfy their needs and wants. Understanding buyer‘s behavior provides clues for
improving or introducing products or services, setting prices, devising channels,
crafting messages, and developing other marketing activities. Furthermore, marketers
are always looking for emerging trends that suggest new marketing opportunities. And
studying consumer behavior would be the input for marketing strategy for improvement
by understanding issues such as:
 The psychology of how consumers think, feel, reason, and select between different
alternatives (e.g., brands, products, and retailers);
 The psychology of how the consumer is influenced by his or her environment (e.g.,
culture, family, signs, media);
 The behavior of consumers while shopping or making other marketing decisions;
 Limitations in consumer knowledge or information processing abilities influence
decisions and marketing outcome;
 How consumer motivation and decision strategies differ between products that
differ in their level of importance or interest that they entail for the consumer; and
 How marketers can adapt and improve their marketing campaigns and marketing
strategies to more effectively reach the consumer.
b) Marketing intelligence is the systematic collection and analysis of publicly available

information about consumers, competitors, and developments in the marketplace. The
goal of marketing intelligence is to improve strategic decision making by understanding
the consumer environment, assessing and tracking competitors‘ actions, and providing
early warning of opportunities and threats.
There are two sources of marketing intelligence. They are formal and informal.
Salesmen, intermediaries, information centers, experts, private agencies etc. are formal
sources and newspapers, trade journals, magazines, employees etc. are informal
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sources.
1. Formal Sources: Formal sources of marketing intelligence system includes
middlemen, sales force, marketing information Centre, vacancy announcement, private
agencies, stakeholders, and international sources. The formal sources of marketing
intelligence are as follows:
a. Intermediaries: The intermediaries include dealers, distributors, wholesalers,
retailers etc. Middlemen deal with many competitors‘ products at one time.
Therefore, on the one hand, middlemen know about the policy and strategy of new
products, promotion, and pricing etc. of the different companies. And on the other
hand, they have adequate information about the market because of their direct link
with customers. They can be motivated to provide vital market information.
b. Sales-forces (Salesmen): They spot and report new developments in the market-
place. Organizations train and motivate them for marketing intelligence purposes.
Sales forces provide useful information to the business organization.
c. Marketing Information Centre: Organizations can establish a marketing
information centre for marketing intelligence. Then to receive the information
secretly, staff of this centre are sent to the competitors‘ organization. Those staff
will send the information of the competitors about their policy and strategy secretly
and regularly to the centre. They are also called business spy.
d. Vacancy Announcement: It is difficult to receive information openly from
competitors‘ staff. But the competitors‘ staff may also be the important source to get
information. So, the organization announces the vacancy where the competitors‘
staff also applies for the job. These vacancies may be both imaginary and real. In
this way, organization receives the important secret information through the
interview of the applicants.
e. Private Agencies: Private agencies may also be the sources to receive information.
Some of the private agencies collect the secret information regularly and provide
them to the interested organization. Any organization can buy the secret information
from such agencies.
f. Stakeholders: Stakeholder includes customers, government, suppliers, middlemen
and staff. They also provide information about the market. For example, from
customers organization can know about product‘s quality, feature, taste, price,
buying capacity etc. From suppliers, one can know about raw material‘s price,
technology, alternative raw materials and competitors. From government it can
know about product‘s demand, population, inflation, per capita income, etc. From
middlemen one can know about distribution cost, distribution capacity and customer
response, etc. Similarly, through staff organization can know about administrative
problems, ability to implement decision and disability, etc.
g. Specialist/Expert: A business organization may also appoint specialists for
collecting market information. Such specialists are skilled in scanning market
1028
environment.
h. International Sources: Information can be obtained through international
organizations and the articles written by the expert or critics. Similarly, articles
published by WTO, SAFTA, INDP, UNDP, UNIDO, ILO, GATT, World Bank can
also be the sources of information.
2. Informal Sources: The informal sources of marketing intelligence are as follows:
Reading newspapers, magazines, trade journals etc.

 Having interactions with production manager, financial manager, personnel manager,
research and development manager, sales manager, employees etc.
 Having interaction with customers, intermediaries, other concerned persons etc.
a) Any two features of marketing environment
b) Price discrimination
c) E-commerce
d) Distribution
e) Sales promotion
Answer:
a) Any two features of Marketing environment
Marketing environment consists of surrounding of the firm which affects the marketing
decision including policies and strategies of a firm. Marketing environment is characterized
by following facts.
i) It includes all the factors and forces which influence marketing , sales and consumer
satisfaction.
ii) It is always dynamic in nature.
b) Price discrimination
If any marketer sets different price for different customer for the same product. It is called
price discrimination. It is a flexible pricing policy where different price is determined for
same product on the basis of types of customer, time, quantity, geographical area, season
etc.
c) E-commerce
E-commerce is internet-based marketing. It means that the company or its website offers to
transact or facilitate the selling of products and services online. It has given rise in turn to e-
purchasing and e-marketing.
d) Distribution
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Distribution includes all the various activities the company undertakes to make the product
accessible and available to target customers. It involves the marketing channel and physical
distribution. Marketing channel makes the product available to the customers. Physical
distribution makes the product accessible to the channel members and customers
e) Sales promotion
Sales promotion consists of all promotional activities other than advertising, personal
selling and publicity that stimulate short-term or temporary market demand for products.
The basic purpose is to stimulate on the spot buying by people through short-term
incentives. Incentives such as a samples, price concessions, and prize contests are offered to
customers to encourage buying.
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Maximum Marks – 100
Marks
Section -'A'
Effective Communication as a Motivator
One common complaint employees voice about supervisors is inconsistent
messages – meaning one supervisor tells them one thing and another tells them
something different. Imagine you are the supervisor/manager for each of the
employees described below. As you read their case, give consideration to how you
might help communicate with the employee to remedy the conflict.
Hari is a 27-year old who is a foodservice manager at a casual dining restaurant.

He is responsible for supervising and managing all employees in the back of the
house. Employees working in the back of the house range in age from 16 years old
to 55 years old. In addition, the employees come from diverse cultural and ethnic
backgrounds. For many, English is not their primary language.
Hari tries his best to keep up with food safety issues in the kitchen but he admits
it‘s not easy. Employees receive ―on the job training‖ about food safety basics.
But with high turnover of employees, training is often rushed and some new
employees are put right into the job without training if it is a busy day. Eventually,
most employees get some kind of food safety training. The owners of the
restaurant are supportive of Hari in his food safety efforts because they know if a
food safety outbreak were ever linked to their restaurant; it would likely put them
out of business. Still, the owners note there are additional costs for training and
making sure food is handled safely.
One day Hari comes to work and is rather upset even before he steps into the
restaurant. Things haven‘t been going well at home and he was lucky to rummage
through some of the dirty laundry and find a relatively clean outfit to wear for
work. He admits he needs a haircut and a good hand scrubbing, especially after
working on his car last evening. When he walks into the kitchen he notices several
trays of uncooked meat sitting out in the kitchen area. It appears these have been
sitting at room temperature for quite some time. Hari is frustrated and doesn‘t
know what to do. He feels like he is beating his head against a brick wall when it
comes to getting employees to practice food safety.
Hari has taken many efforts to get employees to be safe in how they handle food.
He has huge signs posted all over the kitchen with these words: KEEP HOT
FOOD HOT AND COLD FOOD COLD and WASH YOUR HANDS ALWAYS
AND OFTEN. All employees are given a thermometer when they start so that
they can temp food. Hand sinks, soap, and paper towels are available for
employees so that they are encouraged to wash their hands frequently.
Questions:
1125
a) What are the communication challenges and barriers Hari faces?
b) What solutions might Hari consider in addressing each of these challenges and
barriers?
c) What Standard Operating Procedures (SOPs) would be helpful for Hari to
implement and enforce?
d) What are some ways Hari might use effective communication as a motivator
for employees to follow safe food handling practices?
Answer:
a) Communication challenges abound at any workplace. Hari has some common
challenges in his operation.
 Language barriers: not all employees speak English as their first language making
verbal communication a challenge at times.
 Generational (age) barriers: having employees in various age categories can pose a
unique set of challenges. While the younger generation is used to texting and using
shortened messaging, their vocabulary may not be consistent with that of older
employees. Work values and attitudes may also affect communication between
younger and older employees.
 Cultural and ethnic barriers: Cultural differences in food safety practices may be a
challenge for Hari to overcome.
 Non verbal challenges: Hari‘s body language (appearance) is telling others he does
not care about personal appearance and cleanliness.
 Emotional barriers: Emotional barriers can interfere with effective communication.
Hari comes into work after a rough start at home. These negative emotions are
affecting how he communicates with the employees.
b) Hari might consider the following solutions to the identified challenges and barriers:
 Language barriers: Several potential solutions might be addressed here including
posting signs in employees‘ primary language. Putting signage with visuals, not just
words. Hari might learn some simple words in the employees‘ primary language to
help show interest in the employees.
 Generational (age) barriers: Currently there are 4 generations in the workforce and
each potentially has a different preferred method of communication. While the
younger generation might prefer to receive text messages as their preferred way of
communication, older employees may not find this method of communication
acceptable. Consider your employee‘s preferences and be willing to communicate a
message in a few different ways.
 Cultural and ethnic barriers: Hari may need to identify cultural beliefs and work to
understand the ethnic barriers related to food safety. For instance, two employees
come from the same country and they have made comments that controlling
temperature in their country is not a priority; food can be at room temperature for long
periods of time and nothing ever happened.
 Non verbal challenges: Hari‘s appearance is a nonverbal cue to employees. His
appearance is important as he is a role-model to the employees. His actions and
behaviors should be consistent with what he is expecting of them. For example,
because he is expecting the employees to follow proper handwashing procedure, he
should also use proper handwashing procedures.
1126
 Emotional barriers: Emotional barriers can interfere with effective communication. It
will be important for Hari to get his emotions ―in check‖ prior to starting work.
Having self-awareness and potentially seeking outside assistance may be possible
solutions here.
c) Standard Operating Procedures (SOPs) serve as the written documentation of best

practices and serves as the framework for organizational policy and structure. SOPs
identify the who, what, why, when, and how of foodservice practices for employees.
Part of the supervisor‘s role is to assure SOPs are in place, communicated to employees,
and followed. For this case, two helpful SOPs would be:
 New Employee Orientation SOP: Due to time constraints of ―busy days‖ and high
turnover, Hari currently finds orienting new employees to be a challenge. Although it
may take time at the beginning, the pay off may be great and save time in the long
run.
 Employee Health and Personal Hygiene SOP: Although SOPs are generally intended
for employees, it is important to note that as role models, supervisors/managers
should generally adhere to operational SOPs. Hari‘s own lack of adherence to
personal hygiene standards indirectly tells employees that appearance and hygiene are
not important. His own personal hygiene and appearance should serve as an example
to employees – clean, unwrinkled clothing, clean hands, free from grease and dirt with
neatly trimmed hair are a must for him to be a motivator for his employees to have
good appearance and hygiene. At present, his non verbal communication is telling
them personal hygiene and appearance is not important.
d) All supervisors, including Hari, have many ways to use effective communication in
motivating employees. A few suggestions are listed below:
 Provide sincere and encouraging words when employees follow safe food handling
behaviors. Use a communication method appropriate for an employee, so supervisor
must know a bit about the employee. For a high schooler, maybe it‘s a quick ―thank
you‖ text message or an older employee it might be a hand written thank you note.
 Serve as a role model through verbal and non verbal communication. It‘s said that
―actions‖ speak louder than words, so Hari can, through his actions, convey a
message to employees. For example: wear a clean uniform.
 Nonverbal (non-word) communication is the transmission of information in addition
to words in a communication to an audience or receiver of the communication content.
2. What are the advantages and disadvantages of working in teams, describe the
characteristics of effective teams. (6+4=10)
Answer:
A team is a unit of two or more people who share a mission and the responsibility for
working to achieve a common goal. Problem-solving teams and task forces assemble to
resolve specific issues and then disband when their goals have been accomplished. Such
teams are often cross-functional, pulling together people from a variety of departments
who have different areas of expertise and responsibility. The diversity of opinions and
experiences can lead to better decisions, but competing interests can lead to tensions that
highlight the need for effective communication. Committees are formal teams that usually
have a long-life span and can become a permanent part of the organizational structure.
1127
Committees typically deal with regularly recurring tasks, such as an executive committee
that meets monthly to plan strategies and review results.
The teamwork interactions among the employees represent one of the most essential
elements of interpersonal communication. Collaboration —working together to meet
complex challenges—has become a core job responsibility of the professionals. It‘s a
virtual guarantee that everyone will be expected to collaborate in at least some of his/her
work activities. Communication skills will pay off handsomely in these interactions,
because the productivity and quality of collaborative efforts depend heavily on the
communication skills of the professionals involved.
Advantages of teams
When teams are successful, they can improve productivity, creativity, employee
involvement, and even job security. Teams are often at the core of participative
management, the effort to involve employees in the company‘s decision making. A
successful team can provide a number of advantages such as:
Increased information and knowledge: By pooling the experience of several

individuals, a team has access to more information in the decision-making process.
Increased diversity of views: Team members can bring a variety of perspectives to the
decision-making process—as long as these diverse viewpoints are guided by a shared
goal.
Increased acceptance of a solution: Those who participate in making a decision are

more likely to support it and encourage others to accept it.
Higher performance levels: Working in teams can unleash new levels of creativity and
energy in workers who share a sense of purpose and mutual accountability. Effective
teams can be better than top-performing individuals at solving complex problems.
Disadvantages of teams
Although teamwork has many advantages, it also has a number of potential
disadvantages. At the worst, working in teams can be a frustrating waste of time. Teams
need to be aware of and work to counter the following potential disadvantages:
Groupthink: Like other social structures, business teams can generate tremendous
pressures to conform with accepted norms of behaviour. Groupthink occurs when peer
pressures cause individual team members to withhold contrary or unpopular opinions.
The result can be decisions that are worse than the choices the team members might have
made individually.
Hidden agendas: Some team members may have a hidden agenda —private,
counterproductive motives, such as a desire to take control of the group, to undermine
someone else on the team, or to pursue a business goal that runs counter to the team‘s
mission.
Cost: Aligning schedules, arranging meetings, and coordinating individual parts of a
project can eat up a lot of time and money.
Characteristics of effective teams
1128
The most effective teams have a clear objective and shared sense of purpose, have a
strong sense of trust, communicate openly and honestly, reach decisions by consensus,
think creatively, and know how to resolve conflict. Teams that have these attributes can
focus their time and energy on their work, without being disrupted by destructive conflict.
In contrast, teams that lack one or more of these attributes can get bogged down in
conflict or waste time and resources pursuing unclear goals. Two of the most common
reasons cited for unsuccessful teamwork are a lack of trust and poor communication. A
lack of trust can result from team members being suspicious of one another‘s motives or
ability to contribute. Communication breakdowns are most likely to occur when teams
operate across cultures, countries, or time zones. Thus, the group dynamics is necessary
among the team members. The interactions and processes that take place among the
members of a team are called group dynamics. Productive teams tend to develop clear
norms, informal standards of conduct that members share and that guide member
behavior. Group dynamics are influenced by several factors: the roles that team members
assume, the current phase of team development, the team‘s success in resolving conflict,
and the team‘s success in overcoming resistance.
3.
a) Write an e-mail responding to an announcement for a vacancy. 5
b) What are the supplementary parts of a report? Enumerate chronologically and
explain each of them in brief. 5
Answer:
a)
To:
Subject: An application for the post of IT officer
Sir,
I saw your online announcement for the post of IT officer, and I would like to apply for
the same. I have gone through your job descriptions, requirements and conditions. I have
come to realize that my academic profile and professional experiences will most
essentially match with your job requirements.
I have attached my CV along with this application. I am looking forward to your quick
response.
Regards
…………….
b) Supplementary parts follow the text of the report and provide information for readers
who seek more detailed discussion. Supplements are more common in long reports than
in short ones, and they typically include appendixes, a bibliography, and an index.
Appendixes: An appendix contains materials related to the report but not included in the
text because they are too long or perhaps not relevant to everyone in the audience. The
content of report appendixes varies widely, including any sample questionnaires and
cover letters, sample forms, computer printouts, statistical formulas, financial statements
1129
and spreadsheets, copies of important documents, and multipage illustrations that would
break up the flow of text. An appendix is usually identified with a letter and a short,
descriptive title. All appendixes should be mentioned at appropriate places in the text
and listed in the table of contents.
Bibliography: To fulfil your ethical and legal obligation to credit other people for their
work and to assist readers who want to research your topic further, include a
bibliography, a list of the secondary sources you consulted when preparing your report.
This can also be called ―References‖ if it includes works consulted but not mentioned in
the report. In addition to providing a bibliography, some authors prefer to cite references
in the report text. Acknowledging your sources in the body of your report demonstrates
that you have thoroughly researched your topic. Furthermore, mentioning the names of
well-known or important authorities on the subject helps build credibility for your
message. Such source references should be handled as smoothly as possible.
Index:
An index is an alphabetical list of names and subjects mentioned in a report, along with
the pages on which they occur. If the readers need to access specific points of
information in a lengthy report, consider including an index that lists all key topics,
product names, markets, or important persons— whatever is relevant to the subject
matter. As with the table of contents, accuracy in an index is critical.

a) Ethical communication
b) Stages of job interview
c) Barriers to effective listening
d) Web Conferencing
e) A follow-up letter
Answer:
a) Ethical communication
Ethics are the accepted principles of conduct that govern behavior within a society.
Ethical behaviour is a companywide concern, but because communication efforts are
the public face of a company, they are subjected to particularly rigorous scrutiny from
regulators, legislators, investors, consumer groups, environmental groups, labor
organizations, and anyone else affected by business activities. Ethical communication
includes all relevant information, is true in every sense, and is not deceptive in any
way. In contrast, unethical communication can distort the truth or manipulate
audiences in a variety of ways.
b) Stages of job interview

Job interview, an important component of employment communication, displays
distinctive features from other types of interviews. It is usually carried out in three
different stages: warming-up stage, question-answer stage and summing-up stage.
The warming-up stage refers to the stage that exists before the main conversation
between the interviewer and interviewee. In this stage both interviewer and
interviewee attempt to be prepared to lead the interview to a successful
communication. The interviewee is prepared with cheerful appearance and positive
thoughts and expectations. The interviewer attempts to make some kind of attachment
with the interviewee with the help of gestures, welcome note, etc. Similarly, in the
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question-answer stage, the content based interaction between the interviewee and the
interviewer takes place. This is the largest stage of job interview. The final stage is
known as summing-up stage in which the interviewer signals pre-closing of the
conversation. And finally, the interview gets wrapped up with conventional thank-you
note and farewell exponents.
c) Barriers to Effective Listening

Barriers and noise can interfere with the communication process. There are various
barriers to effective listening and some of the prominent barriers are:
i) Physical barriers: We cannot listen if we cannot hear what is being said. Physical
barriers include hearing disabilities, poor acoustics, and noisy surroundings.
ii) Psychological barriers: Everyone brings to the communication process a different
set of cultural, ethical, and personal values. Each of us has an idea of what is right
and what is important. If other ideas run counter to our preconceived thoughts, we
tend to ―tune out‖ the speaker and thus fail to hear.
iii) Language problems: Unfamiliar words can destroy the communication process
because they lack meaning for the receiver. Similarly emotionally charged words
also cause miscommunication.
iv) Nonverbal distractions: Many of us find it hard to listen if a speaker is different
from what we view as normal. Unusual clothing, speech mannerisms, body
twitches, or a radical hairstyle can cause enough distraction to prevent us from
hearing what the speaker has to say.
v) Thought speed: Because we can process thoughts more than three times faster
than speakers can say them, we can become bored and allow our minds to wander.
d) Web Conferencing
Participants can take part in ―real life‖ meetings from the comfort of their offices.
Web conferencing is similar to videoconferencing but usually without the
transmission of pictures of the participants. They use their computers to access an
online virtual meeting room where they can present PowerPoint slides or share
spreadsheets or Word documents, just as they might do in a face-to-face meeting.
They can even demonstrate products and make changes in real time during a
meeting. Software such as WebEx and Microsoft Live Meeting makes Web
conferencing easy and effective.
e) A follow-up letter
In several situations, the follow-up letter is considered to be an important mode of
communication. It can be written after a business meeting, job interview, business
contract etc. In order to continue communicating with the recipient, you need to
write this type of a letter.
In the early stage of a business relationship, this type of a letter is written. It is

important to adopt the formal letter writing style. It is important to proofread your
letter in order to avoid spelling and grammatical errors.
Here are the two important reasons of sending a follow-up letter:

First is, it can offer an opportunity to maintain an additional contact after a
networking meeting, career, etc.
Second is, it can allow you to reconnect to the person with whom you are not in
touch for a while for the job search.
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The follow-up letters are different from the thank you letters. The main purpose of
the letter is to show your thankfulness to someone for meeting you, approving
your project etc. It gives you the chance to re-introduce yourself.
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Marketing
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Maximum Marks –100
Time Allowed –3Hours
Marks
Section -'B'
Shrestha tailoring center is a reputed brand in Kathmandu Valley for shirting
suiting and accessories. Thirty-two years ago, Shrestha tailoring center was
established by Babu Kaji Shrestha in Bagbazar. It is mainly famous for suits,
available both in readymade and through custom tailoring. It also offers casuals
and other wears for ladies and kids. ―We cater to the clothing of newborns to old
ones,‖ claims Shrestha. Apart from its main showroom in Bagbazar, it has
branches in several urban locations of Kathmandu such as Chabahil, and
Tripureshor.
The company‘s clients are mainly middle-class people. Though they have many
old clients, they also have increasing new customers. Apart from word of mouth,
it is also using advertisements from electronic media. Frequently, it offers free tie
for those who orders suit to attract customers. ―Last year, we offered free
Bangkok air tickets to lucky customers. We also give discount to customers
buying through debit and credit cards,‖ Shrestha said. It has also sponsored
several fashion shows, beauty pageants and programs in FM stations.
Price charged by the Shrestha tailoring center is slightly higher than other
competitors because of its location, quality clothing and brand image. To meet the
competition, they had offered suit at Rs. 4999 as a Dashain offer to attract price
sensitive customer. But this scheme did not work well. It became unsuccessful to
persuade economy minded customers. From the lesson learnt form the
unsuccessful Dashain scheme they are planning to modify the existing promotion
strategy. They are also planning to go beyond the Kathmandu Valley through
franchise and online business.
a) What is the main issue of the case?
b) Analyze the product strategy of Shrestha tailoring center.
c) Based on above case, identify the marketing concept implemented by Shrestha
tailoring center.
d) Are four P‘s sufficient for Shrestha tailoring center? Give your opinion.
Answer:
a) As per the above case, the main issue is implementation of inappropriate psychological
pricing as a promotional scheme. In the above case, reputed Shrestha tailoring center has
offered odd price i.e. Rs. 4999 to attract economy minded customers. Odd pricing targeted to
price sensitive customer is not matched with the brand personality of the tailoring center.
Thus, it failed to attract economy minded customers. It seems that tailoring center became
unsuccessful to attract new customer and to retain old customer because of inappropriate
pricing which is not in line with company image. Similarly, quality trap may be the reason as
customers perceive high price high quality and low price low quality. This type of appeal also
creates confusion among the quality conscious existing customer.
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b) Shrestha tailoring center offers suits and accessories. It offers readymade suits and custom-
made suits. It also offers causals and other wears for ladies and kids. All products offered by
Shrestha tailoring center are closely related. They are closely related in terms of ultimate
consumption, in terms of distribution, in terms of promotion, in terms of target market. If any
company offers more than one product items which are closely related, that is popularly
known as product line strategy. Thus, based on product variety of company, we can say that it
is product line strategy.
c) In the given case, the company has used advertisement through electronic media. It has also
offered free goods i.e. tie for purchasing suits. It seems clear that they have also used sales
promotion tools like lucky draw i.e. free Bangkok air tickets. Several fashion shows, beauty
pageants and programs in FM stations have also been sponsored by Shrestha tailoring center.
It means they are using aggressive selling techniques to increase sales. The case is silent
about low price and easy availability or product quality. Similarly, the case is silent about
customer satisfaction and social responsibility.
Thus, we can conclude that based on given case, they are implementing selling concept of
marketing. As selling concept of marketing holds that customers will not buy their product
unless and until they are well informed. And aggressing selling techniques should be used to
increase sales and earn profit. It ignores customer satisfaction and social responsibility.
d) Marketing mix is popularly known as four P‘s which includes product, place, price and
promotion. Four P‘s are sufficient for physical goods but not sufficient for service products.
In today‘s context, it is very difficult to get pure physical goods or pure services. Features of
service are intangible, inseparable, perishable, indivisible and variable. Tailoring is a service
business. It offers hybrid product which includes both physical goods as well as service.
Thus, for customer satisfaction and organization goal achievement, Shrestha tailoring center
must not rely on four P‘s. They must address additional three P‘s i.e. people, process and
physical evidence while designing and implementing their marketing mix.
6. What is Promotion? What are the components of promotion? Explain the

objectives of promotion. (4+2+4=10)
Answer:
Promotion is the one of the major element of marketing mix which provides various valuable
information to consumers about product, its price, availability, utilities and benefits. Promotion
consists of various activities that facilitates exchanges with target customers through persuasive
communication which stimulates the demand of the product. Promotion is also known as
marketing communication.
According to Philip Kotler, ―Promotion includes all the activities the company undertakes to
communicate and promote its products to the target market.‖
According to Dictionary of Marketing, ―Promotion is the element in an organization‘s marketing
mix that serves to inform, persuade, and remind the market of a product and/ or organization
selling in the hope of influencing the recipients‘ feelings, beliefs, or behavior.‖
Promotion includes various types of marketing communication related activities to inform,
persuade, remind and reinforce the target market about the company‘s offerings which influence
the customer‘s feelings, belief or behavior of the customers.
Components of Promotion
There are mainly four components of promotion which are as follows:
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• Advertising
• Personal selling
• Public relation and publicity
• Sales Promotion
Objectives of Promotion
The major objectives of promotion are informing, persuading, reminding and reinforcing or
reassuring the customer about the product.
1) Informing:
The main objective of promotion is to inform the market about product, price, availability,
utilities and benefits. It helps to develop awareness about the product It also provides
alternatives to the customers for purchase decision.
2) Persuading:
Promotion persuades customers to make the purchase decision in favor of the promoted
brand. Promotion is persuasive communication. It stimulates product demand through
appealing ads, incentives and benefits. Promotion influence buyer behavior. Promotion also
persuades middlemen to carry such product.
3) Reminding:
Customer normally has very short-lived memory. It is impossible to customers to remember
all advertised brand. So, marketer reminds customers about the product by using various
promotional tools. The marketer assumes that customer may forget unless they are constantly
reminded.
4) Reinforcing:
Promotion is equally important in post purchase stage of the buying process. Consumer may
feel anxiety after their purchase decision. Marketer often provides reinforcing message to
increase customer‘s satisfaction level. Repeated reinforcement also leads to brand loyalty. By
the reassurance to customer, marketer tries to reduce cognitive dissonance and build brand
and corporate image.
7.
a) What is distribution? Also point out the components of physical distribution. (3+2=5)
b) What is a package and packaging? Explain briefly the essentials of a good
package. (2+3=5)
Answer:
a) Distribution includes all the various activities the company undertakes to make the product
accessible and available to target customers. Distribution or Place is one of the important
elements of marketing mix. It includes the marketing channel and physical distribution.
Marketing channel makes the product available to the customers. Physical distribution makes
the product accessible to the channel members and customers. Distribution is also called the
―the other half of marketing.‖ It fulfills the gap between the producer and consumer.
Distribution channel is a set of interdependent organizations involved in the process of making
a product or service available for use or consumption by the consumer or business user.
Distribution channel may be direct channel, indirect channel or mixed channel. Physical
distribution is related with physical movements of goods from point of production to point of
consumption. It is also called market logistics.
Components of physical distribution are mentioned as follows:
i. Transportation
ii. Warehousing
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iii. Inventory management
iv. Order processing
v. Material handling
b) Generally, packaging is an act of designing or producing the package for a product. In other
words, packaging can be defined as the process of designing the container for a product.
Packaging includes all activities required for designing and producing the container or
wrapper for a product.
While, a package means wrapper or cover or container in which a product is enclosed. We
see that some products are enclosed in a paper box some are enclosed in a tube, some are
enclosed into the canes, some are enclosed into a plastic bag, some are enclosed into a wood
box, and some are enclosed into a metal container, and so forth. All these are the types of
package. Use of a particular package largely depends upon the nature of product, demand of
the buyer and the particular country's legal requirements.
Essentials of a Good Package

A good package should pose the following characteristics:
i. It should be economical i.e., it should involve least cost to manufacture, to fill, and to
remove or to handle, so that it does not adequately affect the sales price of the product.
ii. It should be functional i.e., it should perform all those functions what it is supposed to do.
For example, is a package is used to minimize the cost of goods, it should do so. If a
package is used to attract the potential customers, it should do so. If a package is used to
protect from physical problems such as air, water, dust, etc., it should do so.
iii. In should be communicative or it should have promotional value i.e., it should
disseminate all information to the customers and other parties concerned regarding brand,
use and features of products, place and date of manufacture, name of manufacturer, etc.
iv. It should be attractive i.e., a package should be quite attractive since one of the main
objectives of packaging is to attract customers. In order to make a package attractive,
attractive and match-able color combination should be used, it should have good design, it
should use, as far as possible, attractive pictures or symbols or graphic presentation. A
right combination of these attributes will make a package more attractive, which will have
positive impact on company's sales volume and profitability.
v. It should be eco-friendly i.e., it should be environmentally friendly. A package should be
produced by such materials which do not affect environment or which do not create
environmental pollution. The green revolution has suggested the green marketers to use
environmentally friendly package. The actors of green revolution have suggested using
such package in the product, which not only must not contaminate the environment but
should protect it and even liquidate existing environmental damages. Many countries
including EU member countries, USA, Australia, and many more countries have their own
green legislations, which have implemented such conditions strictly. They can ban
importing those products from any country of the world, which do not meet their green
requirements.
vi. It should be durable i.e., a package should lengthen the life of the product so than the
marketers can store goods for a long period and consumers can use the product after a long
time from the date of manufacture.
vii. It should have commercial value i.e.; a package should be able to create adequate demand
for goods to maximize the sales quantity and earn adequate income.
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a) Market Segmentation
b) Pricing
d) Shopping Product
e) Meaning of E-marketing
Answer:
a) Market Segmentation
The process of defining and subdividing a large homogenous market into clearly
identifiable segments having similar needs, wants, or demand characteristics. Its objective
is to design a marketing mix that precisely matches the expectations of customers in the
targeted segment.
b) Pricing
Pricing refers to an act of determining the exchange value between what buyers get
and what the sellers receives. It is a process of setting prices for various products and
services. In short, pricing is the act of determining exchange value of a product or
service.
Marketing environment comprises all the actors and forces outside marketing that affect
marketing management‘s ability to develop and maintain successful transactions with its
target customers. Marketing is environment specific and change in marketing
environment creates opportunities and challenges in marketing. E.g. economic
environment, social environment, technological environment etc.
d) Shopping Product
Shopping products are less frequently purchased consumer products and services that
customers compare carefully on suitability, quality, price, and style. When buying
shopping products and services, consumers spend much time and effort in gathering
information and making comparisons. Shopping products marketers usually distribute
their products through fewer outlets but provide deeper sales support to help customers in
their comparison efforts. Clothing, furniture, motorbike are the examples of shopping
product.
e) Meaning of E-marketing
E-marketing or electronic marketing refers to the application of marketing principles and
the techniques through electronic media or internet. It is the process of marketing a brand
using the electronic devices that can be used to connect marketers and their customers via
the worldwide wave with the aim of attracting new customers retaining current business
and developing its brand identity. It is useful to exploring domestic as well as
international market through internet.
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Suggested
Marks
Section -'A'
Avishek manages the customer relations department of a public utility company. The
department is responsible for replying to customer requests for information and to
customer complaints. There are seven typists in the department who handle the
correspondence to customers dedicated by the staff.
Avishek recently promoted Rachana to office supervisor. Rachana had been a typist in
the department for ten years. She was considered the fastest and most accurate typist
who had ever worked for Avishek. Rachana has the best attendance record in the
department and Avishek considered her his most dependable employee. She was very
well liked by all the typists and they considered her to be a good personal friend.
As a supervisor, Rachana does a good job handing out work assignments, but she does
little else to supervise the typists. She does not like to criticize the typists and does not
enforce office rules. No matter what a typist does, Rachana will not take any
disciplinary action. She makes no attempts to check the work of the typists for
compliance with quality standards or to see that work is completed on time. In fact, she
spends most of her time typing to reduce the work load of other typists.
The human resource department has been receiving an increasing number of complaints
from various staff from different departments about the poor quality of the typing and
about the slow turnaround time of the work. A number of the complaints target towards
Rachana’s poor supervisory skills. Complaints were also received about the typists
under Rachana taking excessively long coffee breaks and spending time on personal
phone calls. The human resource department conveyed the complaints to Avishek who
has been asked to inquire and rectify the problem.
When Avishek talked to the typists, they told him that Rachana frequently invites them
to her house for dinner or to play bridge. It appears to Avishek that the typists all like
Rachana as a friend, but they are becoming concerned about her lack of supervisory
skills. Avishek mentions to Rachana that she should focus her effort on improving the
work of the typists. She replied, “These woman are my friends and I don’t feel right
cracking down on them”.
Questions:
a) Can an individual effectively manage a group and be a close personal friend with
group members?
ANS: An individual's managing a group depends on the organizational context and the personalities of
ones' colleagues. The elasticity of relation depends, also, according to the situation and types of job one
has to perform. It seems that almost every organization is managed by an individual because there is
always a corporate head, who takes charges of and monitors overall office affairs. In this connection an
individual is believed to manage a group. However, the role of subordinates, although marginalized, has
greater importance in maintaining the group bonding. Hence, an individual, no doubt, requires to
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maintain friendly relation with his subordinates, group members and coworkers. Similarly, as far as
close and personal friendship is concerned, an individual should have two "selves" i.e. personal and
official. Acknowledging the office hierarchy and portfolio systems one can still maintain a good relation
but not that friendly. One should very carefully regard the limitations in office affairs to maintain a
conducive office atmosphere.
b) What should Avishek do to ensure that the work of the typists will improve?
ANS: Avishek as a manager must have been vigilant from the beginning with every possible activities of
his staff. Although 'it is better late than never', Avishek requires to find out the root causes of the activities
taking place in the office and he needs to take the decision that gets win-win situation. Avishek should call
Rachana and inquire her about her perception to the coworkers. Rachana must have been too friendly may
be because she has any other "domestic psychological disturbance" as a result she loves to hangout with
the office coworkers. Rachana along with other typists' performances can be improved with asking for as
well as giving advices and recommendation. May be she is frustrated with the low payment system and
that is a type of "systematic soldering" as a protest. Simply promoting to the position doesn’t ensure her
financial stability. Avishek must be responsible to review his managerial skill as well. Besides these,
Avishek may invite an expert and motivate Rachana along with other typist colleagues to motivate and
excel their skill in everyday affairs.
c) Should Rachana have been promoted to office supervisor?
ANS: The manager understands the need of the organization and go for the appropriate recruitment
procedures. Most of the time the manager will have eyes on the staff in the organization if they are capable
of taking the responsibilities and give their best performances. In case the candidate is fit within the
organization a manager doesn’t go for costly and lengthy recruitment process. Avishek must have thought
Rachana a best fit and promoted her. Nonetheless, Avishek as a manager must have reviewed the
performances and should envision the characteristics of the individual he is promoting. In this case
Avishek seems to find Rachana very dependable for the post thus Rachana's promotion doesn’t look
illogical. By the same token, Rachana's past performances aptly qualify her for the position. Despite of
promoting her to the post, Avishek should have shrewd eyes to observe her performance record, internal
operational, external operational and personal communication. In my view promoting Rachana is not a
blunder but the activities after her promotion needed to be monitored carefully.
d) If you were Rachana, what would you do?
ANS: I would definitely talk to Avishek about all the ongoing activities frankly. I would also request
Avishek to check the work on his own rather than listening to others. Other might have reported negatively
out of jealousy over my promotion in the office. Further, if there were some witnesses on the blaming
made, I will review them and take the chance as an opportunity to appropriate myself in the organizational
culture. Moreover, I would express my understanding that the office work is not disturbed because of my
friendly relation with other members in the organization. I would pay close attention, monitor the fellow
workers politely and hold a meeting on how to improve work performances to excel oneself for the career
growth.
2. There are several factors that can contribute to a successful multinational meeting.
Discuss any five of the most essential factors that contribute to the success of
international business meeting. 10
Answer:
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Multinational meetings are core concerns of today’s business communication. Along with the
globalization of market, business organizations have growing tendencies of extending across
the cultural and national boundaries. In this context, international business meetings have
become a major issue for consideration among the practitioners of multinational business. The
most important factor has become communication, i.e. language and its specific style. The
value of international communication is growing. Apart from communication channel and
process, there are several other factors that make meaningful contribution to a successful
international business meeting. Some of them include:
 Topic for discussion: the participants of the international meetings must be update with
what is being talked about. They have to think in advance about exactly what it is that they
want to discuss and decide.
 Participants: the participants of the international meetings need to know who will be the
other participants in the meeting. The basic cultural norms, interests, expertise, positions,
etc. of the other participants will help to make the contributions in the meeting more
relevant, cooperative and successful.
 Means of communication: in the multinational meetings, the choice of code is remarkably
important. The proficiency in the international language like English needs to be fairly
high. Appropriate preparation about relevant vocabulary, business terms, structures,
exponents, utterances, etc. is prerequisite to the multinational meetings.
 Manner of interaction: interaction in the multinational meetings follows the general maxims
of politeness and cooperation. The participants must be polite as well as cooperative in the
discussion. Furthermore, they should not hesitate to interrupt and argue freely in the
discussion. The native speakers of the dominant language are not expected to dominate the
discussion. Listening to others is essential for every participant.
 Use of nonverbal cues: the nonverbal devices such as gestures, body postures, signs, etc.
also play important role in the multinational meetings. Cross-cultural interpretations and
understandings of the nonverbal devices are to be considered properly so that conflicts are
less likely.
3.
a) Define notice and mention what its various parts are. 5
b) You are the president of Student’s Association of Life School. Write a notice
informing the students about an audition for Radio Show. 5
Answer 3(a):
A notice is the most common method of communication, which gives information regarding
an important event that is about to take place. A notice conveys information in a very precise
manner. These are the parts of notice:
1. Name of organization
2. Word Notice
3. Date of issue
4. Subject
5. Purpose
6. Details of schedule
7. Sign, name, designation
Answer 3(b):
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Life School
Notice
April
Audition for Radio Show

Our school will be presenting a popular Radio Show named Children’s World . Talented
students willing to conjure up original items on the theme Adventure can participate.
Date: April ,
Time: PM
Venue: School Auditorium
For further details, please contact the undersigned.

Asmita Roy
######
President, Student’s Association
4. Write differences between/ short notes on: (4×2.5=10)

a) Formal and Informal reports
b) Cross culture communication
c) Resolving Conflict
Answer:
a) The differences between formal and informal reports include tone, structure, scope,
content and purpose. Another difference is that formal reports are often used in academic
papers or to provide a lengthy overview of a major change or development within a
business, while informal reports are used for shorter documents, such as memos and
newsletters. Consequently, formal reports are more detailed than informal reports.
Formal reports have a set structure: an introduction, body and conclusion. However,
informal reports can be structured in any way. Formal reports also have a formal tone and
use third-person narrative, while most informal reports use first- or second-person
narrative. Although some informal reports use a professional tone, it is not required in
many cases.
The scope of informal and formal reports is another major difference. Formal reports
analyze a specific topic in great detail. On the other hand, informal reports are often very
brief and only include the most relevant information.
Formal reports also provide evidence to back up the information in the report. Since
informal reports are brief, this is not included in this type of report. Formal reports usually
include citations for the sources used to generate the report. Charts, graphs and statistical
information are also common components of formal reports. This information provides
evidence and summarizes the findings of the report.
b) The increasing diversity in the workplace poses challenges to the workers as well their
managers. Along with globalization of business, workplace diversity in the workplace has
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become a burning issue in the sector of business and management. As solution has a
phenomenon emerged quite lately, i.e. intercultural communication which is also known as
cross-cultural communication. It refers to the way of communication between the people of
different cultures, without posing any kind of threat to any kind of culture. The
international languages and their nativised varieties are commonly used as effective means
of intercultural communication. Basically, the workers of a business house are given
trainings on intercultural norms, values, beliefs and practices. And, they are given
guidelines to communicate each other in line with the perspectives of different cultures.
c) Conflict in team activities can arise for a number of reasons: competition for resources,
disagreement over goals or responsibilities, poor communication, power struggles, or
fundamental differences in values, attitudes, and personalities. Teamwork isn’t necessarily
about happiness and harmony; even teams that have some interpersonal friction can excel
with effective leadership and team players committed to strong results. The following seven
measures can help team members successfully resolve conflict:
i. Proactive behavior: Deal with minor conflict before it becomes major conflict.
ii.Communication: Get those directly involved in a conflict to participate in resolving it.
iii.Openness: Get feelings out in the open before dealing with the main issues.
iv. Research: Seek factual reasons for a problem before seeking solutions.
v. Flexibility: Don’t let anyone lock into a position before considering other solutions.
vi. Fair play: Insist on fair outcomes and don’t let anyone avoid a fair solution by hiding
behind the rules.
vii.Alliance: Get opponents to fight together against an “outside force” instead of against
each other.
d) Sometimes the channel simply breaks down and fails to deliver the message at all. A
colleague you were counting on to deliver a message to your boss might have forgotten to
do so, or a computer server might have crashed and prevented your blog from updating.
Everyone in an organization can help minimize barriers and distractions. In any situation, a
small dose of common sense and courtesy goes a long way. Turn off that mobile phone
before you step into a meeting. Don’t talk across the tops of other people’s cubicles. Be
sensitive to personal differences, too. For instance, some people enjoy working with music
on, but music is a huge distraction for others, so use headphones. Finally, take steps to
insulate yourself from distractions. Don’t let messages interrupt you every minute of the
day. Instead, try to set aside time to attend to messages all at once so that you can focus the
rest of the time.
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Marketing
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Suggested
Marks
Section -'B'
Five years ago, Kathmandu college, was established in Tinkune, Kathmandu by a group of
Kathmandu University MBA graduates to retain the students of elite class family in the
country by offering high quality education by renowned professors. At present more than
five hundred students are studying in various programs such BBS, BBA, and BHM. The
college is affiliated to Tribhuvan University. There are 50 renowned faculty members in
the college which consists of 20 full time and 30 part time faculty members. There are also
15 administrative staffs to run various programs. The college is running in morning and
day shifts.
From the very beginning, the college has been practicing odd pricing while determining the
fee structure for their programs where as their competitors has been practicing even
pricing. For example, annual fee structure of Kathmandu college is: BBS Rs.99,000, BBA
Rs.119,000, and BHM Rs.129,000. There is no provision of discount for anyone. They
charge same fee structure for all students. But their nearest competitor has been offering
various discount offers based on student’s score in 10+2.
Similarly, they have been promoting their college aggressively from the very beginning.
For advertising, they are using radio, TV and daily newspaper. They always participate in
education fair organized by Kathmandu Post. Prospectus and leaflet have also been used
for college promotion. Famous film star, Rajesh Hamal is used as a brand ambassador of
the college to create brand awareness.
The college management has tried their best to provide quality education. It has already
gained popularity for quality education. The result is excellent in comparison to other
competitive colleges.
Last month, college management had conducted a students’ satisfaction survey by
distributing closed ended questionnaires. In the survey, it was found that students are not
satisfied with college management. Students dissatisfaction is related with poor
infrastructure, lack of sports facilities and no welcome and farewell programs. It was found
that students were highly satisfied with faculty members but not satisfied with
administrative staffs.
As you are the student of marketing, the college management is going consult with you to
solve the problem identified during survey.
a) Are they customer oriented marketer? Give your opinion.
b) Comment on the brand name Kathmandu College.
c) Is odd pricing appropriate for the college? Give your argument.
d) What is the main issue of the case? Explain.
Answer
a)
Ans: In my opinion, they are not customer oriented marketers. Customer orientation is one of the
fundamental principles of new marketing concept. To be a customer oriented marketer, they must create
highly satisfy customers by offering high value. Customer satisfaction must be their motto to become a
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customer oriented marketer. In the above case, it has mentioned that as per the students’ satisfaction
survey, students are not satisfied to the college management. It means marketing program designed by the
management is not customer friendly. In the above case, it has also been mentioned that they have been
relied upon aggressive promotion like advertising and event management. By implementing selling
concept of marketing, no marketer can be a customer oriented marketer. In nutshell, it is concluded that
they are not customer oriented marketer.
b)
Ans: In Nepalese context, the word ‘Kathmandu’ is multi-used brand. There are so many marketers who
use Kathmandu as a brand. Marketers use brand name mainly for identification and differentiation. But
multi-used brand can not give specific brand identity to identify and differentiate the brand from brands.
For example, Kathmandu University, Kathmandu Hospital, Kathmandu steel, Bank of Kathmandu,
Kathmandu Engineering college, Kathmandu college of Management etc. Selected brand must be strong,
favorable and unique for specific brand positioning. Thus, brand name Kathmandu college is not
appropriate from marketing perspective. It only creates confusion to customers.
c)
Ans: odd pricing is a type of psychological pricing. It is suitable for price sensitive customers as it gives
psychologically cheaper feeling for economy minded customers. Based on the above case, it is mentioned
that the college management has tried their best to provide quality education and it has already gained
popularity for quality education. So, to reflect quality in fee structure of the Kathmandu college it is not
good to set odd pricing. Odd pricing is appropriate if marketer want to establish their product as a cheaper
product. So, for quality positioning it is better to set even pricing such as Rs. 100,000, Rs. 120,000 and Rs.
130,000 instead of Rs. 99,000, Rs. 119,000 and Rs. 129,000.
d)
Ans: Based on the given case, the main issue of the case is students’ dissatisfaction because of the
inappropriate marketing mix. Their target market is elite class people, and pricing and promotion strategies
they adopted are not appropriate as per the characteristics of target market. Mere quality education and
excellent result is not enough to satisfy their target market. They must design their marketing program as
per the need of target market. Implementation of traditional marketing concept by inappropriate marketing
mix has led to student’s dissatisfaction. Thus, they must be customer oriented marketer and must
formulate appropriate marketing program as per the need and characteristics of target market.
6. Give the meaning of marketing environment and explain the components of micro
environment of marketing. (4+6=10)
Answer
A company’s marketing environment consists of all the factors and forces outside marketing that affect
marketing management’s ability to build and maintain successful relationships with target customers.
Successful companies know the vital importance of constantly watching and adapting to the changing
environment. As we move into the twenty-first century, both the customers and marketers wonder what
the future will bring. The environment continues to change rapidly. More than any other group in the
company, marketer must be trend trackers and opportunity seekers.
According to Professor Philip Kotler, “marketing environment comprises all the actors and forces
outside marketing that affect marketing management’s ability to develop and maintain successful
transactions with its target customers.”
The marketing environment surrounds and impacts upon the organization. There are two key
perspectives on the marketing environment, namely the macro environment and the micro environment.
The major components of the micro environment of marketing are as follows:
i. The company:
In designing marketing plans, marketing management takes other company groups into account –
groups such as top management, finance, R & D, purchasing, operations, and accounting etc. All these
interrelated groups form the internal environment. Together, all of these departments have an impact on
the marketing department’s plans and actions. Under the marketing concept, all of these functions must
“think customer”. They should work in harmony to provide superior customer value and satisfaction.
ii. Suppliers
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Suppliers form an important link in the company’s overall customer value delivery system. They
provide the resources needed by the company to produce its goods and services. Supplier problems can
seriously affect marketing. Marketing managers must watch supply availability – supply shortages or
delays, labor strikes, and other events can cost sales in the short run and damage customer satisfaction
in the long run. Marketing managers also monitor the price trends of their key inputs. Rising supply
costs may force price increases that can harm the company’s sales volume.
iii. Marketing intermediaries
Marketing intermediaries help the company to promote, sell, and distribute its goods to final buyers.
They include resellers, physical distribution firms, marketing services agencies and financial
intermediaries.
Like suppliers, marketing intermediaries form an important component of the company’s overall value
delivery system. In its quest to create satisfying customer relationships, the company must do more than
just optimize its own performance. It must partner effectively with marketing intermediaries to optimize
the performance of the entire system.
iv. Customers
The company needs to study five types of customer markets closely. Consumer markets consists of
individuals and households that buy goods and services for personal consumption. Business markets
buy goods and services for further processing or for use in their production process, whereas reseller
markets buy goods and services to resell at a profit. Government markets are made up of government
agencies that buy goods and services to produce public services or transfer the goods and services to
others who need them. Finally, international markets consist of these buyers in other countries,
including consumers, producers, resellers and governments. Each market type has special
characteristics that call for careful study by the seller.
v. Competitors
The marketing concept states that to be successful, a company must provide greater customer value and
satisfaction than its competitors do. Thus, marketers must do more than simply adapt to the needs of
target customers. They also must gain strategic advantage by positioning their offerings strongly against
competitors’ offerings in the mind of consumers.
Competition can be generic, product, brand, price and non price.
vi. Publics
The company’s marketing environment also includes various publics likefinancial publics, media
publics, local publics, internal publics, government publics, citizen-action publics, general public etc.
7.
a) Explain the criteria for evaluating market segments. 5
b) What is buyer behavior? Explain briefly the role of age in buying decision. (2+3=5)
Answer
a) After completing the segmentation of market that should be evaluated and better market segments
should be identified. While evaluating market segment, the company should analyze the size and
growth of the segments structural attractiveness of the segments and objectives and resources of
the company.
i. Segment size and growth:
While evaluating market segments, at first information about sale, growth rate and expected
profit should be collected and analyzed. The segment size and growth rate should be the best. But
size and the growth rate should be looked comparatively. Some companies like to target those
markets which have prospective of large quantity sale, high growth rate and high share of profit.
But such market segment may not be attractive for all companies. The companies select the best
market segment on the basis of their efficiency, means, and resources.
ii. Segment attractiveness:
While evaluating market segment, the size, growth rate and profit should be analyzed and its
structural attractiveness be considered. According to Michael Porter, The structural components to
affect attractiveness of market segments are competitors, substitute products, Buyer’s power, and
supplier’s power. Etc. should be studied.
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iii. Company’s objectives and resources:
Even if the size, growth, and structural attractiveness is favorable in the market segments,
the company should compulsorily consider its objectives and resources. Some market segments
may attractive but they should be abandoned, if they are not suitable to the company’s long term
objective. Thus, a company should select only those market segments which are suited to the
company’s objectives. Similarly, while analyzing market segments, production facilities employees
and their abilities, financial condition, means and resources also should be considered.
iv. Inter segment relationship:
Firm should pay much attention for segment interrelationships in terms of cost performance
and technology. Existing distribution channel, advertising media and agency can be used or not ?
The firm also give much attention for inter segment coordination which helps to improve the
overall performance of the organization.
v. Ethical Consideration:
Ethical aspects of various segments should also evaluated with due consideration to environmental
concerns. Well being of customers and society should be carefully evaluated.
vi. Government policies:
Government policies, rules and regulations should be carefully considered for evaluating the
market segments. Ignorance of law is of no excuse. Thus, legal provisions should be strictly
complied within evaluating segments.
b) A buyer is anyone who might buy a given product. A buyer may be either an individual person or
an organization that have an interest in the product and the means to acquire it. Cravens, Hills and
Woodruff define ‘buyer behavior’ as ‘the activities and actions of people (and organizations) that purchase and use economic goods and
services, including, the influences on these activities and actions’.
Buyer behavior is affected by a number of factors including economic forces, demographic forces,
psychological forces, behavior-related forces, etc.
Now, let us try to find the answer the question relating how age affects the buying decision of a
buyer while buying a particular product.
On the basis of age, people can be classified into various groups such as children, youths and old-
aged people. Similarly, each age group can also be divided into various groups – including, 0 – 5, 5
– 10, 10 – 15, 15 – 25, 25 – 35, 35 – 45, 45 – 55, 55 – 65, and above 65 years. The taste,
preferences and the choice of each age group differ from one another.
For example, children prefer to buy toys or related items, Youths may be attracted more towards
fashion product, music items, sports items, etc. Similarly, the choice of old-aged people is to some
extent saturated and may like traditional items.
Marketers need to motivate and satisfy different age-groups in different ways, because all of them
cannot be satisfied with similar items, offers, and treatment.
a) Marketing Information System (MkIS)
b) Green marketing
c) Service product
d) Holistic marketing concept
e) Point out the objectives of distribution
Answer
a) Marketing Information System (MkIS) is a mechanism established for providing decision making data
and information to marketing planner and marketers. It is an ongoing organizational process includes
the activities such as collection of information, sorting, analysis, evaluation and timely dissemination
of information to marketing decision makers.
b) Green marketing refers to the process of selling products and/or services based on their environmental
benefits. Such a product or service may be environmentally friendly in itself or produced in an
environmentally friendly way.
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c) Any activity or benefits that one party can offer to another that is essentially intangible is called
service product. The product is normally inseparable from service provider. Service product and its
price and quality are varied according to service provider, capacity, goodwill, place and time.
Production and consumption of service are done at same time. So, no organization can keep or store
service. Communication, hotel, restaurant, counseling, and insurance are the example of service
product.
d) The holistic concept explains that there are so many categories of customers, including individuals and
organizations or individual consumers and society as well, whose needs and wants are unlimited and
are not identifiable at all times. And on the other hand, there is high level of competition in the market.
All the needs of customers cannot be satisfied by a single marketing effort or limited marketing efforts
like in the above-mentioned marketing concepts; in order to meet all these needs and satisfy all
customers, marketer needs to use all possible marketing tools and effort.
The major tools of this concept are:
i. Integrated Marketing: This concept emphasis to utilize all available resources
effectively and efficiently to satisfy the various needs and problems of the customers.
ii. Relationship Marketing: This concept emphasizes to establish and maintain good
relation with all the social groups so that they perceive the company and its products
positively.
iii. Managing Internal Marketing: This concept emphasizes to make all the internal staffs
customer-oriented so that they can provide better services and treatment to customers
for their satisfaction.
iv. Societal marketing: This concept also emphasizes to focus on social needs and
problems and work for welfare and wellbeing in society.
e) Main objectives of distributions are:
i. Delivery of satisfaction
ii. Standard of living
iii. Value addition
iv. Communication
v. Employment
vi. Efficiency
vii. Financing
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Suggested Answer
Roll No……………. Maximum Marks –100
Time Allowed –3 Hours
Marks
Section -'A'
Jack Simpson, newly appointed human resources director for Geridan Contracting
Corporation (GCC), had had an unusual morning. First on his agenda was an exit
interview with Maria Johnson, the company president‟s executive secretary.
Johnson has simply informed Simpson she was quitting, giving no reason. Judging
from her performance reviews over the last few years, Simpson believed her to be
competent, enthusiastic, and dedicated employee. Even though Simpson had little
knowledge of her workload, he could see no obvious reason for the resignation. He
had set up this exit interview hoping to find out why she had quit.
Next on Simpson‟s agenda was an interview with Ryan Ross, the president of
GCC, who wanted to talk to Simpson before Simpson began interviewing later in
the day for the secretary‟s replacement. Simpson had never conducted an interview
for a president‟s secretary before, but he had planned on getting a good idea of
what to look for during his talk with Johnson. He believed Ross would also advise
him on what he expected from the secretary‟s replacement.
However when Simpson and the resigning executive secretary, Johnson, sat down
in a quiet conference room at 8:30 am, the HR director‟s ear began to burn.
Johnson explained that for the last six months she was being sexually harassed by
Ross and that she was considering suing GCC (and Ross in particular).
Simpson needs to know more about this accusation in case it does develop into a
more serious situation. Also, the more facts he has, the better prepared he will be to
discuss the situation with the president. What interview strategy should Simpson
use with the secretary?
Questions:
a) What are the problems in the above case?
b) Make a list of five probable questions Director Simpson would ask to Johnson.
c) If you were Johnson, how would you handle this situation?
d) What are the guidelines for taking an effective interview? Write in brief.
Answer:
a) Jack Simpson is new in his role as HR Director. On the very first day, he has to handle a
very difficult task, i.e. conduct an exit interview for Maria Johnson who is the secretary of
the company president. He does not know how to take exit interviews. He has never done
this before.
Next problem is that Maria blames the president of sexual harassment and Simpson does
not know how to handle such sensitive cases. He has to do justice to both – the victim and
the company.
Jack Simpson is also very much confused for he does not know how to discuss this issue
with the president (or the criminal?) who harassed his own secretary.
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b) Jack Simpson should try to know the situation as objectively as possible. He may ask her
the questions like (Examinees can write any five of them, or similar to them):
a. How long do you know Ryan Ross?
b. What kind of person is he as a president, and as a human being?
c. If your charges against him are true, why didn‟t you complain before?
d. Now you want to leave this organization, is this the only option that you have now?
e. How would you like the president punished?
f. Would you file a case against him?
g. What kind of help, in this regard, do you want from this company?
h. If the culprit were punished, would you like to continue your job?
c) If I were Maria Johnson, I would not have tolerated the director at all. In the very
beginning I would collect all the evidences against him and file the case. I would not
worry about my job for I believe on my capacity and talent. I wonder why Maria tolerated
him for about six months.
I believe that justice comes sooner or later, and we should all the time be ready to fight
against all sorts of discriminations and social ills. Sexual harassment is a heinous crime
and the culprit must be thrown behind the bar.
d) Interviewing is one of the critical elements in collecting information. Here are some
guidelines for conducting an effective interview.
a. Plan in advance
b. Control the environment
c. Use appropriate questions
d. Maintain a relaxed atmosphere
e. Encourage the candidate to ask questions
f. Conclude the session with appreciation or gratitude
2. Some say that there is no difference between ethics and morals. What are your
views? Explain the importance of ethical behavior at the workplace. (5+5=10)
Answer:
There is a fine distinction between ethics and morals which may be enumerated as follows:
The word „Moral‟ is defined as relating to principles of right and wrong. The root word for
moral is Latin word „mos‟ meaning custom while the root word for ethics is the Greek word
„ethos‟ meaning character. Custom and character however provide two different standards
for defining what is wrong and what is right. Character is a personal attribute while custom
is defined by a group overtime and people have character while societies have custom.
Morals are accepted from an authority i.e. culture, religion etc. while ethics are accepted
because they follow from personally accepted principles.
Morals work on a smaller scale than ethics, more reliably but by addressing human needs
for belonging and emulation, while ethics has much wider scope.
An organisation is first and foremost a human society. If an employer does not take steps to
create a work environment where the employees have a clear, common understanding of
what is right and wrong and feel free to discuss and ask questions about ethical issues and
report violations, significant problems could arise, including:
- increased risk of employees making unethical decisions;
- increased tendency of employees to report violations to out side regulatory authorities
(whistle blowing) because they lack an adequate internal forum;
- inability to recruit and retain top executives;
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- diminished reputation in the industry and the community; and
- significant legal exposure and loss of competitive advantage in the market place.
3.
a) Present precisely the stepwise process of organizational communication, and
then analyze the process of communication involved in the following stretch of
business discourse. 5
Mr. Mike: Excuse me. I've to have it exchanged.

Salesperson: Well, would you please show what it is?
Mr. Mike: That I had this morning… I came this afternoon too,
but she didn't listen to any complain.
Salesperson: Oh, you should have brought the warranty card,
and requested the manager in person.
b) As a country director of a multinational business company, you have organized

a press conference in order to disseminate new services launched by your
company. You have noticed that the business reporters and other participants
were not satisfied with the presentation of the marketing director of your
company. Now, write briefly what feedback you would give to him. 5
Answer:
a) Communication is an exchange of ideas and information between people and it takes place
in different modes and contexts. Organizational goals are unlikely to be attained unless
there's no effective communication. Organizational communication involves the following
stepwise process:
Step 1: Sender has an idea, and he or she encodes that idea into message through linguistic
codes or symbols.
Step 2: Message travels through the channel.
Step 3: Receiver decodes the message.
Step 4: Receiver gives feedback/ response to the sender
In the given exchange, Mr. Mike has an idea that is concerned with exchanging the thing
that he had bought. This idea is abstract. He encodes the idea as a message into an utterance
or a sentence 'I've to have it exchanged'. Then, this message travels through the face to face
channel as a request to the salesperson. The salesperson tries to decode or make meaning of
that message. He cannot get appropriate meaning of the word 'it', and requests as response or
feedback to Mr. Mike about 'it'. Again, Mr. Mike encodes what he wants to say; then,
message travels to the salesperson, and the salesperson decodes it properly. He gives
appropriate response or feedback to Mr. Mike. This is the usual process of communication.
b) The marketing director would be provided with the following points of feedback ranging
from different perspectives of business communication such as ethics of business
communication, group interactions and listening skills, cross-cultural communication, and
so on.
 Press conference and press release are different forms of public information from the
advertisements. You as a marketing director should not have compared the quality of our
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service with that of other particular company. Explicit interpretation of our new services
would be enough.
 Another important point to consider is that business organizations need to bear the
responsibility for the welfare of the social issues, and you ignored this aspect. It's not
ethical in business to falsely present the data in an inconsistent manner. The audience
easily found out the false claim that you had made about the previous year's sales.
 Today's buzz word in business communication is 'multicultural sensitivity'. You seemed
totally unconcerned to this issue during your presentation. You were overemphasizing the
role of the Internet in the hilly region of the country among the children of the high class
family.
 During your presentation you looked rather nervous and unplanned. You were not trying
to listen to the complains of the audience, but were intending to impose your own
thoughts.
4. Briefly explain any FOUR of the following: (4×2.5=10)

a) The analytical report
b) Role of a chairperson in business meeting
c) Difference between team and group
d) Interpersonal communication
e) Buffers
Answer:
a) The analytical report
The analytical report examines a problem or issue and recommends an action. Some
analytical reports function as proposals that identify or define problems and argue for
specific ways of resolving them. Other analytical reports are feasibility studies that examine
proposed solutions and determine their practicality.
Experts write analytical reports, often in teams. The reports generally require that these
experts use their professional skills to define an issue, making the study large enough in
scope to identify all the factors that bear on the problem and using a standard professional
methodology, know or learn how such issues have been resolved in other cases, inside and
outside their own company; and accommodate constraints like cost, time, company policy,
union contracts, local and federal law.
b) Role of a chairperson in business meeting
In a more formal meeting, the chairperson will outline the purpose of the meeting and
remind members why they are there. In such a meeting there is little need to refer to this
procedure, as this is implicit in the established etiquette, namely:
 The chair controls the meeting.
 All remarks are addressed through the chair.
 Members do not interrupt each other.
 Members aim to reach a consensus.
 A vote is taken if consensus is not reached.
 The majority wins the vote.
 All members accept the majority decision.
c) Difference between group and team

The words 'group' and 'team' are, for the most part, interchangeable - at least most people
use them that way. But there are clear differences between groups and teams. For example,
we have a football team, not a football group - or we have a special interest group, not a
special interest team. While the differences are subtle, they are indeed different, and we
need to understand what those differences are.
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The main difference is that a team's strength or focus depends on the commonality of their
purpose and how the individuals are connected to one another. On the other hand, a group
can come from having a large number of people or a cohesive willingness to carry out a
focused action - political reform, for example.
While these differences might be subtle, we have to understand that a group is a number of
individuals forming a unit for a reason or cause, and a team is a collection of accomplished
people coming together for a common goal that needs completion. The subtleness of these
differences is more pronounced when we take these words a step further and look at a work
group and work team.
d) Interpersonal communication
Interpersonal communication is the sending and receiving of messages between two or more
people. Everyone communicates in life and business; however, various barriers can exist
that distort the message. Individuals must be able to identify the barriers and find ways to
eliminate them in a way that improves the communication flow. Learning a few techniques
or using proper preparation can help individuals tailor their communication in a way that
provides focus and improves the message.
Effective interpersonal communication is an ongoing process. As new messages come up or

audiences change, senders must tailor their messages to ensure effective communication.
e) Buffers
Buffers are the tools for creating indirect but courteous relationship with the people in
written transactions such as bad news letters, follow up letters, and other correspondences
which might create resistance in the readers‟ mind. A buffer is useful to establish common
ground with the reader. But, a poorly written buffer can mislead and sometimes insult the
reader. Good buffers balance different elements of communication, and give good
impression to the readers. Agreement, appreciation, cooperation, politeness, fairness, etc. are
some of the types of buffers which are important in most of the business correspondences.
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Marketing
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Suggested
Marks
Section -'B'
Considering the fact that men also want flawless skin and are as conscious about it as
women are, Emami Limited launched Fair and Handsome crème – a perfect fairness
cream exclusively for men. It was introduced in the Nepali market simultaneously with
its launch in India in 2005 with the vision to groom men.
Fair and handsome comes in number of ranges – Fair Cream, Face Wash, Oil Control
Cream, Oil Control Face Wash, Fair and Handsome Moisturizing Lotions, Sun
Protection Lotions and Daily Moisturizing Lotions among others. “The texture of
man‟s skin is different from that of a woman, and Fair and Handsome will perfectly
suit all skin types of men. The product is an outcome of a lot of research,” says Madhu
Bashyal, Brand Manager at Emami Limited.
The products were developed by Indian and International Skin care experts using
scientifically tested and clinically proven combinations of natural vitamins, anti-
irritants and sunscreen filters that protect the skin from harmful UVA and UVB rays of
the sun. To maintain the quality of the products, the company carries out strict and
regular quality check and periodic market research to update it.
The brand uses one of the most widely tested and demonstrated skin lightening active
technologies, vitamin B3 that safely works from within to lighten the skin and the dark
spots. The advanced formulation has been designed with a combination of special
„micro absorbers‟ that absorb away the excessive oil and sweat, leaves skin fresh,
sweat and oil free, looking fair and fresh for long time with SPF 15+ protecting from
harmful UV rays of sun that will damage skin and prevents from darkening.
For the promotion of the brand, they are advertising through all media channels
possible. Likewise, they are also into ATL and BTL activities for promotional
campaigns. “The brand holds 80 per cent market share. We plan to be a category
leader and aim to also convert non-users. We spread awareness about our product
through ATL activities,” says Basyal.
Stating that visibility in the market is of utmost importance and branding is an integral
part of promotion, Basyal says, “The Company invests around Rs seven million
annually for branding and promotion and our annual turnover is approximately Rs. 100
million.” Similarly, it is associated with different events through sponsorship and
participation in exhibitions in the city and in regional level exhibitions besides regular
print and electronic advertisement.
Talking about competition, Basyal says, “We are competing with Garnier and Nivea in
the men‟s skincare segment.” The brand, Fair and Handsome, is believed to be the
largest brand in the men‟s fairness segment and second largest in the overall fairness
category in Nepal and in India.
Questions:
a) Give your opinion about the Fair and Handsome Crème.
b) What makes the Fair and Handsome Crème best?
c) Explain the promotion strategies applied in marketing the product.
d) Can this product attract new customers? Why?
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Answer
a) Fair and handsome crème is the product of Emami Limited. This product is targeted exclusively for
men. There are varieties of fair and handsome crèmes; including fair cream, face wash, oil control
cream, oil control face wash, fair and handsome moisturizing lotions, sun protection lotions and daily
moisturizing lotions. Fair and handsome crème is an outcome of a lot of research works so will
perfectly suit all skin types of men.
b) Not only fair and handsome crème, actually, all products of Emami Limited were developed by
Indian and International Skin care experts using scientifically tested and clinically proven
combinations of natural vitamins, anti-irritants and sunscreen filters that protect the skin from harmful
UVA and UVB rays. To maintain the quality of the products, the company carries out strict and
regular quality check and periodic market research to update it. Therefore, the fair and handsome
crème can be regarded as the best crème.
c) In order to improve the brand equity of the product, the company has invested around 7 million
rupees annually where as the annual turnover is approximately Rs 100 million. Company also invests
in different events through sponsorship and participation in the city and in regional level exhibitions
besides regular print and electronic advertisement.
d) Considering the facts that the product was scientifically tested and clinically proven along with the
regular quality control, we can believe that the product can attract new customers in the product line
group. The aggressive promotion strategy of the company is the additional benefit to this effort. The
company authority says that the company is competing with Garnier and Nivea in the market
segment. The company authority is believed that the brand may be the largest brand in the men‟s
fairness segment.
6. What is marketing? Describe the new marketing concept, societal marketing

concept and holistic marketing concept in your own words. (3+7=10)
Answer:
Advertising and selling, however, are just two of the many marketing activities. In other words,
selling and advertising are only the tip of the marketing iceberg.
Today, marketing must be understood not in the old sense of making a sale- “telling and
selling”- but in the new sense of satisfying customer needs. If a marketer does good job of
understanding customer needs; develops products that provide superior value; and prices, distributes
and promotes them effectively, these products will sell very easily. Thus selling and advertising are
only part of a marketing mix.
In general, marketing activities are all those associated with identifying the particular wants
and needs of a target market of customers, and then going about satisfying those customers better
than the competitors. This involves doing marketing research on customers, analyzing their needs and
then making strategic decisions about product design, pricing, promotion, and distribution. Thus,
marketing deals with identifying and meeting human and social needs.
According to Philip Kotler & Kevin Lane Keller, “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.”
According to Stanton, Etzel & Walker, “Marketing is a total system of business activities
designed to plan, price, promote and distribute want satisfying products to target markets in order to
achieve organizational objectives.”
From the above definitions what we can say is customers‟ wants must be recognized and
satisfied. Entire system of business activities should be customer oriented. Marketing should start
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with an idea about a want-satisfying product and should not end until the customers‟ wants are
completely satisfied, which may be some time after the exchange is made.
Various concepts of marketing are explained as follows:
The Marketing Concept
The marketing concept holds that achieving organizational goals depends on determining the
needs and wants of target markets and delivering the desired satisfactions more effectively and
efficiency than competitors do. The marketing concept starts with a well-defined market, focuses on
customer needs, coordinates all marketing activities affecting customers, and makes profit by creating
long term customer relationship based on customer value and satisfaction.
Thus, under marketing concept, customer focus and the value are the paths to sales and profits. This
concept is based on “we make what we can sell.”
The Societal Marketing Concept
The societal marketing concept holds that the organization should determine the needs, wants, and
interests of target customers. It should then deliver superior value to costumer in a way that maintains
or improves the customer‟s and the society‟s well-being. The societal marketing concept questions
whether the pure marketing concept is adequate in an age of environmental problems, resource
shortages, rapid population growth, worldwide economic problems, and neglected social services. It
asks if the firm that senses, serves, and satisfies individual short term wants is always doing what‟s
best for consumers and society in the long run. According to the societal marketing concept, the pure
marketing concept overlooks possible conflicts between consumer short term wants and customer
long term welfare. Societal marketing concept calls on marketer to balance among the three
considerations: consumer, organization and society.
The Holistic Marketing Concept

Holistic marketing concept is a concept that tries to identify all the needs and expectations of
the target customers and tries to fulfill them all for their satisfaction. Because this concept assumes
that the customers may not be satisfied unless all their needs and expectations are fulfilled by the
marketing firm. So a marketer must be able to take all possible efforts to keep the customers satisfied.
The holistic marketing concept is based on the development, design, and implementation of
marketing programs, processes, and activities that recognizes their breath and interdependencies.
Holistic Marketing recognizes that “everything matters” with marketing – that a broad, integrated
perspective is often necessary. Four components of holistic marketing are relationship marketing,
integrated marketing, internal marketing and social responsibility marketing.
Holistic marketing is thus an approach to marketing that attempts to recognize and reconcile
the scope and complexities of marketing activities.
7.
a) Explain the meaning and components of marketing information system in brief. (2+3=5)
b) Differentiate between skimming pricing and penetration pricing strategies. 5
Answer:
a) Marketing information system is a set of procedures and methods for the regular, planned collection,
analysis and presentation of information for use in marketing decisions. It is an ongoing, organized
procedure to generate, analyze, disseminate, store and retrieve information for use in making
marketing decisions.
According to Philip Kotler, “A marketing information system (MKIS) consists of people, equipment
and procedures to gather, sort, analysis, evaluate, and distribute needed, timely and accurate
information to marketing decision makers.”
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Thus, marketing information system is the organized set of procedures, information handling
routines and reporting techniques designed to provide the information required for making marketing
decisions.”
Internal record system, marketing intelligence, marketing research and marketing decision support
system are the four major components of marketing information system which are explained as
follows:
i. Internal Record System
Internal record system collects various types of scattered data which are located inside the company.
The heart of the internal record system is the order-to-payment cycle.
Marketing managers rely on data from internal reports about orders, sales, prices, costs, inventory
levels, receivables, payables and so on. Today many companies organize information in databases-
customer databases, product databases, salesperson databases and so forth- and then combine data
from the different databases. Companies store these data and make them easily accessible to decision
makers to better plan, target, and track marketing programs.
ii. Marketing Intelligence System
As we know the internal records system supplies results data, but the marketing intelligence system
supplies happenings data.
Marketing intelligence is systematic collection and analysis of publicly available information
about competitors and developments in the marketing environment. It is a set of procedures and
sources managers use to obtain everyday information about developments in the marketing
environment.
Marketing managers collect marketing intelligence by reading books, newspapers, and trade
publications, talking to customers, suppliers, and distributors, checking internet sources and meeting
with other company managers.
iii. Marketing Decision Support System
Marketing decision support system (MDSS) is a coordinated collection of data, systems, tools, and
techniques with supporting software and hardware by which an organization gathers and interprets
information from business and the environment and turns it into a basis for marketing action. It is a
procedure that allows a manager to interact with data and methods of analysis to gather, analyze, and
interpret information.
A marketing decision support system may include statistical tools, mathematical tools as well as
financial and managerial tool and models.
iv. Marketing Research
Marketing research is a systematic design, collection, analysis and reporting of data and findings that
are relevant to a specific marketing situation facing by the company.
A company can obtain marketing research in a number of ways. Most large companies have
their own marketing research departments. Some small companies can hire the services of a
marketing research firm or conduct research in creative and affordable ways. They can engage
students or professors to design and carry out projects, they can use the Internet, and they can visit
their competitors.
b) Price skimming strategy: Price skimming is an over-charging strategy. It involves charging a

very high price during the introduction stage of the product life cycle. This strategy is suitable
only for innovative product that can't be compared with other existing products. Consumers are
not aware of its real value. There is a large size of market pioneers and early adaptors. Price
skimming is possible, when there is no competition in the market and entry barriers for new
competitors are also high.
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Penetration pricing strategy: Penetration pricing strategy involves introducing a new product at a
far lower price than the competitive price. This is an under changing strategy. This strategy is
adopted by an organization for an imitative product who has many brand substitute in the markets.
When consumers are aware of the real value the imitative product they can be persuaded to buy
only under a very low price. Marketers adopted this strategy to achieve rapid market expansion
during the introduction stage of product life cycle.

a) Market
b) Warehousing
c) Advertising
d) Meaning of public relations
e) Intangible product
Answer:
a) Market
The market consists of all potential customers having a need or want who possess ability and
willingness to engage in exchange to satisfy that need or want. In other words, there should be:
 People with needs or wants to satisfy
 Money to spend
 Willingness to spend through exchange
Markets can be: Consumer, Business, Institutional, and Global.
b) Warehousing
Warehouse is a place where goods are stored for certain period for the distribution of goods to the
target market whenever and wherever required. While warehousing is a specialized system and
process of storing surplus goods (keeping buffer stock) for use or consumption in future because
goods may not have demand immediately after the goods are manufactured.
c) Advertising
Advertising is non-personal presentation and communication of product, service or organization
through paid media with identified sponsor. It is one of the element of marketing communication.
Various indoor , outdoor, direct or display media are used for advertising. It is mass
communication and message is controlled by advertisers. It is salesmanship in print.
d) Meaning of public relations

Public relation is a management tool designed to favorably influence attribute toward an
organization, its products and its policies. It is a social philosophy of marketing expressed in
policies and practices the relationship between marketing funds and publics can be maintained by
using external media and internal media. The basic tools that can be used in public relation
includes annual reports press conference, press release and so on.
e) Intangible product
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Intangible products are the goods whose ownership cannot be transformed from one person to
another. Such product cannot be touched seen, stored or owned. Such product can only be
realized. Before services are purchased, customers cannot handle examine and tried out. They also
cannot be measured like physical items.
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Suggested Answer
Marks
Section -'A'
Dr. Aditya Sharma, a consultant business researcher primarily works in the
organizational management sector, and has conducted varieties of research including
case study, action research, business surveys, and so on about varieties of
organizational issues such as auditing, business administration, conflict management,
marketing, advertising, international relationships, etc. Dr. Sharma is asked by one of
the multinational companies based on Kathmandu, Nepal to conduct a comprehensive
study and submit the report about the business problems seen in the changing context
of Nepal. Nepal's Regional Office of the company has investigated from the
preliminary study that the company is bearing 12% loss every year for the recent
three years. The new executive director of the company has decided to conduct an
intensive study about the potential causes and problems of the company's loss, and
has appointed Dr. Sharma as the chief researcher who is expected to lead a task force.
Mr. Sharma has recently started the preliminary activities and procedures of the
research. The research is problem based, and immediate solutions are expected. The
TOR has mentioned that the report must include practice related and policy related
recommendations. The research team of Mr. Sharma has organized a meeting, and
conceptualized the design and procedures of the research. They have prepared the
time framework, and have planned about the tools and procedures for data collection.
Questions:
a) Which type of report is Mr. Sharma asked to prepare: analytical or investigative?
What are the major components of this type of report? Describe each in brief.
b) What would be the highly efficient tools for gathering information for this report?
Discuss any two of them in brief.
c) How can data be analyzed and interpreted?
d) Write statement of problem and objectives of Mr. Sharma's report.
Answer:
a) Since Mr. Sharma is asked to carry out a critical analysis of a particular business situation with
an aim at investigating the major problems and recommending the effective solutions, this
report is investigative in nature. Unlike informative reports, this type of report is more focused
to a specific problem of the organization. The major components of investigative report
include:
 Introduction
 Statement of problem
 Objectives
 Methodology (sampling, data collection tools and procedures, …)
 Analysis and interpretation of data
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 Findings, Conclusion and Recommendations
 Bibliography
b) The major tools for data collection for the research report of Mr. Sharma may include:
 interview
 questionnaire
 observation
 focused group discussion
 interactions with clients and retailers
Among them, the highly effective tools for gathering information can be „interview‟ and
„focused group discussion‟ which are explained below in brief:
Interview: it is a face to face interaction of the researcher with the sampled subjects such as
clients, retailers, dealers, and other stakeholders. Interview can be of two types: structured and
unstructured. Structured interview involves systematic planning about the questions to be
asked to the subjects. For this report, the questions can be structured within the framework or
the contents such as popularity of the brand, marketing strategies, prices, consumer
satisfaction, delivery process, dealership model, and so on. The unstructured interviews are
open in nature. The questions are not set before the interview. Interaction is often context
dependent.
Focused group discussion: this technique is really worth talking for the particular case of the
given report. The representatives of the stakeholders such as staff, clients, retailers, dealers, etc.
can be put together in a meeting or a discussion session. Their opinions, reflections and
reactions can be recorded as the data for detecting the problems.
c) The data collected by different tools can be analyzed by using different strategies and
procedures. The qualitative information is gathered and analyzed by categorizing it into
different themes, titles and options. The common tendencies of the data are elaborated, and
verified with the previously defined theories and facts. The quantitative data are analysed in
terms of different statistical tools such as mean, standard deviation, correlation coefficient, and
so on. The data are presented in the tables, charts, graphs, etc. The analysis is done in line with
the objectives set for the research. Report is produced on the basis of the findings attained by
analysis and interpretation of the data.
d) Statement of problem : The present report is prepared focusing basically on the problems that
are implicitly and explicitly associated with the business strategies adopted by the regional
office of Anuradha International Company (Kathmandu Branch). The research emerges out of
the basic problem related to the decreasing financial growth of the company. The causes of
consistent loss seen in the recent annual reports are the primary issues that this report deals
with. The latest audit report shows that the company is bearing gross loss of 12%. The research
question is: what is the factor that affects the financial status of the company?
Objectives
The report has the following specific objectives:
 to study and analyze managerial efficiency of the company
 to find out the marketing strategies of the company
 to analyze consumer responses of the products
 to explore the problems related to management, marketing, sales and public dealing
 to recommend potential solutions of the identified problems.
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2. Prepare a persuasive cover letter in response to the advertisement given below: 10

Assistant Product Manager: We are currently seeking an assistant product manager
for our fast-paced organization. S/he must possess as sound knowledge of marketing
related activities such as making a marketing plan; executing, monitoring, &
evaluating it. S/he should be very good at computer use and must have very good
interpersonal communication skills. Please send your application to Ms. Courtney L.
Donahue, director of Del Rio Enterprises.
Answer:
Satdobato, Lalitpur
May 23, 2016
Ms. Courtney L. Donahue

Director, Human Resources
Del Rio Enterprises
Denver, CO 82511
Dear Ms. Donahue:
Your advertisement for an assistant product manager, appearing May 22 in Section C of the Denver
Post, immediately caught my attention because my education and training closely parallel your
needs. According to your advertisement, the job includes “assisting in the coordination of a wide
range of marketing programs as well as analyzing sales results and tracking marketing budgets.” A
recent internship at Ventana Corporation introduced me to similar tasks. Assisting the marketing
manager enabled me to analyze the promotion, budget, and overall sales success of two products
Ventana was evaluating. My ten-page report examined the nature of the current market, the
products‟ life cycles, and their sales/profit return. In addition to this research, I helped formulate a
product merchandising plan and answered consumers‟ questions at a local trade show.
Intensive course work in marketing and management, as well as proficiency in computer

spreadsheets and databases, has given me the kind of marketing and computer training that Del Rio
probably demands in a product manager. Moreover, my recent retail sales experience and
participation in campus organizations have helped me develop the kind of customer service and
interpersonal skills necessary for an effective product manager.
After you have examined the enclosed résumé for details of my qualifications, I would be happy to
answer questions. Please call me at 9851133333 to arrange an interview at your convenience so that
we may discuss how my marketing experience, computer training, and interpersonal skills could
contribute to Del Rio Enterprises.
Sincerely,
Kendra A. Hawkins
3.
a) Effective listening is one of the important determinants for the successful business
interactions. Listening becomes more complex in many contexts because of many
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different barriers to it. Explain in brief how barriers to effective listening can be
overcome, and success in business interactions can be enhanced. 5
b) State the contents of a persuasive resume, and write the resume head and
objective statement of your resume. 5
Answer:
a) Listening is a very common receptive skill which often becomes far more complex than most
people think. Complexity in effective and successful listening is mostly caused by many
different factors such as content, channel, etc. of communication. Listening becomes complex
because of various barriers to it, too. Good listeners always look for ways to overcome potential
barriers throughout the listening process.
Barriers to effective listening may vary from physical reception to listener's mental conditions.
The physical barriers such as room acoustics, phone rings and other noises, background music
etc. can be serious when the listener has to extract particular information or content from
listening. Similarly, lack of attention, interruption, schema, prejudgment etc. can be the examples
of mental barriers to effective listening. Some of the strategies for overcoming the barriers to
effective listening can be:
 try to minimize the sources of physical barriers such as noises and poor acoustics
 avoid selective listening and focus on the speaker
 keep an open mind and avoid prejudgment
 try to interpret the message from the context of the speaker
 do not interrupt the speaker
 write, record or try to capture the information
 try to associate, categorize and visualize the information
 pay proper attention
b) The contents of a persuasive resume:

 Resume head (Name, address,..)
 Objective Statement
 Academic details
 Professional details
 Experience record
 Special skills & involvement
 Referees
 Signature & date
Suman Bista
Kathmandu 13, Kalanki
9841xxxxxx
discover.xxxxxx@gmail.com
Objective statement:
To serve the nation and the organization where I work with consistent dedication and hard
work, and to enhance the business environment of my organization, focusing on business
ethics and standard.

a) Disadvantages of grapevine in an organization
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b) Ethics in business communication
c) Parts of a formal report
d) Group dynamics
e) Follow up letter
Answer:
a) A grapevine is more like a rumor. It doesn't come straight from the horse‟s mouth and is usually not
fact. These rumors can cause distrust or mutiny within an organization. It is important for managers
of a marketing team to address these issues to all personnel before the rumors get out of hand.
Monthly mandatory meetings with employees can help quench this bomb fuse. It is important to
create constant communication between the hierarchy reinforced with internal newsletters to keep
information factual.
b) Any company that aims to be socially and ethically responsible must make a priority of ethical
communication both inside the company and in its interactions with the public. In theory, many
consumers prefer to do business with companies they believe are ethical which gives those ethical
businesses an advantage in the market. Ethical issues of business communication are one such issue.
Some of the vital characteristics of ethical communication are discussed below.
While communicating to the audience, conveying the desired message to them in a significant
manner is of primary importance. For instance, the employees in a company can be asked to
increase their efficiency in a demanding manner whereas managers and executives will feel
offended if the same tone is used on them.
Maintaining the same wavelength with the audience is very important for a communicator to ensure
the audiences feel at home. Experienced communicators immediately build a relationship based on
trust with the audience as soon as they start speaking.
c) These are three major parts of a formal report:

1. Prefatory parts
• Title fly
• Title page
• Letter of authorization
• Letter of transmittal/preface/ foreword
• Table of content
• Executive summary
2. Report Proper
• Introduction
• Report findings
• Summary, recommendation
3. Appended parts
• Bibliography
• Appendix
• Index
d) Strength of team work is always appreciated in the sector of business and organizational
management. The role of each member in the team or group is important in order to accomplish
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group tasks and get success in business. To accomplish the business goals successfully, team
members constantly contact with one another. The interactions and processes that take place
between the members of a team are called group dynamics. Some teams are more effective than
others simply because the dynamics of the group facilitate member input and the resolution of
differences. Group dynamics are affected by several factors: the role that team members assume,
the current phase of team development, the team's success in resolving conflict, and its success in
overcoming resistance. Group dynamics promote understanding and cooperation among the
members.
e) Follow-up letters are different than thank you letters. The purpose of thank you letters is to thank
someone for meeting with you and to reaffirm your interest in the position or industry at hand.
Thank you letters are, in turn, sent immediately. A follow-up letter is sent several weeks after
sending a thank you letter in order to touch base once again with your contact and to reintroduce
yourself. A follow-up letter provides you with the opportunity to restate your interest and to
check for new job leads or information. Another type of follow-up letter may be sent after
submitting your resume and cover letter. If after several weeks, you have not heard from the
employer, you should send a follow-up letter to reemphasize your interest in the company and
the position. Follow-up letters can be sent by post or email. You should make your letter as
formal or as informal as your relationship with the contact dictates.
Follow- up letter shows:

 That you appreciated your initial meeting
 Where you stand in your current job search
 Anything relevant that has occurred between the initial meeting and now
 What type of help you now need
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Marketing
Suggested Answer
Marks
Section -'B'
5. Read the following case carefully and answer the questions given below:
Kanchhi Balami and her husband migrated to Kathmandu from Nuwakot few years
ago. Her husband Kumar Balami works as a driver in a private firm. She is 25 years
old and has one son Krishna and one daughter Bimala. Both the children are enrolled
in a government school.
Kanchhi has been working as a cook in a private house while working as a domestic
service worker in a private house; so she has adequate knowledge in cooking. During
the period, she had obtained from her house-owner the „pastry making‟ skill, where
she works. So pastries baked by her are delicious. Once she expressed her interest
with her husband, instead of working at a private house, to open a pastry shop near by
the SANN and CAB College to put her talent in practice, because sometime she felt
lonely and bored staying home alone, especially at day time, and at the same time,
their income was not sufficient to meet their children‟s expenses. Her husband
understood her problem and interest, so he gave her wife permission to do according
to her interest and also assured to support her in this effort. So she was impressed by
the support of her husband and decided to open a small pastry shop near by these
colleges. She rented a small shop near by the College, hoping that a large number of
students may come to the shop for varieties of pastry, coffee and tea. She bought the
necessary equipments for kitchen and shop with a cash outlay of Rs.50, 000. She
managed for furniture and furnishings. Now, Kanchhi decided to name her shop as
“Bhatbhateni Bakery Shop". Kanchhi maintained neat and clean in the shop to satisfy
the customers. Beside it, her treatment with the customers was also impressive.
The business has been operating for the last ten months. Sales are slowly increasing.
The major customers are college students, who drop in for a pastry and coffee.
Occasionally, professors come by with their friends for pastry and cup of tea.
Shopkeepers and offices in the nearby area are also her regular clients who send
orders for shop delivery. With the passes of time, a large number of travellers also
come to the shop for tea, coffee and pastries. Local households also come to purchase
pastries over the counter. Customers are satisfied with her services and treatment. But
many customers frequently asked for Momo and Chow-Min dishes. During the
vacation period, Kanchhi has noticed considerable drop in the sales. Though she has
knowledge about cooking Momo and Chow-Min, she needs to make additional
investment of about Rs. 50, 000 for managing Momo and Chow-Min in the shop, for
which she has to take loan from financial institution or somebody else. This money is
necessary not only to purchase necessary equipments and furniture but also needs to
hire more space in the rented house. She is confident that, if additional dishes could
be managed in the shop, the loan would be repaid within six months and then
afterwards she would be able to earn handsome profit from the business. She
discussed with her husband on this issue. Her husband was impressed by her proposal
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and permitted to do accordingly. However, she wants to change neither the existing
business name nor the location.
Actually, Kanchhi Balami hesitates to keep additional items like Momo and Chow-
Min dishes, because of limited managerial capacity and limited financial capacity.
She was satisfied with the existing business flow and profit margin. But if the
demanded items could be added, she is confident that she will be able to earn more
money. On the other, if she avoids keeping the demanded items and insists only in the
current items, it becomes difficult for her to expand volume and value of business in
future.
Kanchhi Balami is now in a big problem because she does not know about the
modern marketing concept and marketing techniques; so she is searching for persons,
who can provide her an expert advice in this connection. You as a marketing student,
she puts the following questions and issues on you for providing her reasonable
solutions, which can promote her business in the days to come.
Questions:
a) Why did Kanchi Balami decide to open a pastry shop near by the SANN and
CAB colleges? 5
b) State the target market and customers of Kanchi Balami. 5
c) What factors compelled Kanchi Balami to think for adding Momo and Chowmin
dishes? 5
d) Explain the reasons, whether Kanchi Balami should add these two dishes or not. 5
Answer1(a)
The main intention of Kanchhi Balami to open the pastry shop was to help her husband
financially, because the income of single person was not adequate to feed and educated her
children properly.
However, the main objective of opening the pastry shop near by the SAAN and CAB colleges
was that the colleges have many students who may come to her pastry shop and drink tea &
coffee and eat pastry items.
Answer1(b)
She decided to open her pastry shop in that area thinking that Kanchhi Balami may have a large
target market and can earn adequate income from students. Her customers include college
professors, travelers, nearby shop-keepers, local house-owners, and students as well.
Answer1(c)
When the classes were off during the vacation period, Kanchhi Balami noticed considerable drop
in sales. Similarly, many customers demanded for momo and chowmin items. Due these
situations, Kanchhi Balami was compelled to think for keeping the most demanded additional
dishes in her shop.
Answer1(d)
Since she does not have good knowledge about marketing, she decided to take the suggestions of
marketing students. If she really wants to be a marketer, she should add the two dishes as
demanded by most of the customers; because marketing is a customer-oriented philosophy of
business, so she as a marketer should go ahead as per the demand of customers. The
sustainability of her business is dependent on how she perceives the customers‟ sentiment and
work accordingly.
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6. What is marketing? Explain the selling concept and new marketing concept. (4+6=10)
Answer2
Advertising and selling, however, are just two of the many marketing activities. In other words,
selling and advertising are only the tip of the marketing iceberg. Although they are important,
they are only two of many marketing functions and are often not the most important ones.
Today, marketing must be understood not in the old sense of making a sale- “telling and
selling”- but in the new sense of satisfying customer needs. If a marketer does good job of
understanding customer needs; develops products that provide superior value; and prices,
distributes and promotes them effectively, these products will sell very easily. Thus selling and
advertising are only part of a marketing mix.
In general, marketing activities are all those associated with identifying the particular
wants and needs of a target market of customers, and then going about satisfying those customers
better than the competitors. This involves doing marketing research on customers, analyzing
their needs and then making strategic decisions about product design, pricing, promotion, and
distribution. Thus, marketing deals with identifying and meeting human and social needs.
According to Philip Kotler & Kevin Lane Keller, “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.”
According to American Marketing Association, “Marketing is the process of
planning and executing the conception, pricing, promotion and distribution of ideas, goods and
services to create exchanges that satisfy individual and organizational objectives.
According to Stanton, Etzel & Walker, “Marketing is a total system of business activities
designed to plan, price promote and distribute want satisfying products to target markets in order
to achieve organizational objectives.”
From the above definitions what we can say is customers‟ wants must be recognized and
satisfied. Entire system of business activities should be customer oriented. Marketing should start
with an idea about a want-satisfying product and should not end until the customers‟ wants are
completely satisfied, which may be some time after the exchange is made.
The selling Concept:
Selling concept holds that consumers and businesses, if left alone, will ordinarily not buy enough
of the organization‟s products unless it undertakes a large-scale selling and promotion effort.
Therefore, the organization must undertake an aggressive selling and promotion effort. The
selling concept is practiced most aggressively with unsought products, products that buyers
normally do not think buying, such as insurance and encyclopedias. Most firms practice the
selling concept when they have overcapacity. Their aim is to sell what they make rather than
make what the market wants. Such marketing carries high risks. It focuses on creating sales
transactions rather than on building profitable relationships with customers. It assumes that
consumers who are coaxed into buying the product will like it. Or if they don‟t like it, they will
possibly forget their disappointment buy it again later. These are usually poor assumptions to
make about buyers. Most studies show that dissatisfied customers do not buy it again. Worse yet,
whereas the average satisfied customer tells three others about good experiences, the average
dissatisfied customer tells ten others about his or her bad experiences.
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The New Marketing Concept
The new marketing concept holds that achieving organizational goals depends on determining
the needs and wants of target markets and delivering the desired satisfactions more effectively
and efficiency than competitors do. The marketing concept starts with a well-defined market,
focuses on customer needs, coordinates all marketing activities affecting customers, and makes
profit by creating long term customer relationship based on customer value and satisfaction.
Thus, under marketing concept, customer focus and the value are the paths to sales and profits.
This concept is based on “we make what we can sell.”
7.
a) Explain the meaning and objectives of promotion. (2+3=5)

b) What is a new product for a marketing firm? Explain briefly the reasons for
product failure in the market. (2+3=5)
Answer3(a)
Promotion is one of the major element of marketing mix which provides various valuable
consists of various activities that facilitates exchanges with target customers through persuasive
communication which stimulates the demand of the product.
According to Philip Kotler, “Promotion includes all the activities the company undertakes to
communicate and promote its products to the target market.”
Promotion includes various types of activities such as advertising, sales promotion, personal
selling, publicity and public relation to inform, persuade, remind and reinforce the target market
about the company‟s offerings. These activities influence the customer‟s feelings, belief or
behavior for buying.
The major objectives of promotion are informing, persuading, reminding and reinforcing or
reassuring the customer about the product.
1. Informing:
The main objective of promotion is to inform the market about product, price, availability,
utilities and benefits. It helps to develop awareness about the product It also provides alternatives
to the customers for purchase decision.
2. Persuading:
Promotion persuades customers to make the purchase decision in favor of the promoted brand.
Promotion is persuasive communication. It stimulates product demand through appealing ads,
incentives and benefits. Promotion influence buyer behavior. Promotion also persuades
middlemen to carry such product.
3. Reminding:
Customer normally have very short-lived memory. It is impossible to customers to remember all
advertised brand. So, marketer reminds customers about the product by using various
promotional tools. The marketer assumes that customer may forget unless they are constantly
reminded.
4. Reinforcing:
Promotion is equally important in post purchase stage of the buying process. Consumer may feel
anxiety after their purchase decision. Marketer often provides reinforcing message to increase
customer‟s satisfaction level. Repeated reinforcement also leads to brand loyalty. By the
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reassurance to customer, marketer tries to reduce cognitive dissonance and build brand and
corporate image.
Answer3(b)
A product is anything, tangible or intangible, that can satisfy the expected need of the target
customers. People generally think that a new product should be completely a new and innovative
product which is new for the customers. But for a marketer, a product may be the following
products –
i. Imitating product – It is a new product copied by an organization from an original firm;
ii. Improved product – It is an existing product of the firm which is modified with a view to
increase sale of expand market;
iii. Innovative product – It is completely a new product, which is developed through the
research and development activities;
Each year, certain products become failure and are dissuaded from the market. The main reasons
for product failure in the market may include –
i. Lack of differentiation with the existing competitive product;
ii. Due to poor positioning strategy of the marketer;
iii. Poor value of the product compared to their prices;
iv. Due to small size of the market or fragmented markets;
v. Due to the increased rate of product imitation in the market by the competitors;
vi. Due to ineffective and poor distribution system;
vii. Due to high level of unhealthy competition In the market;
viii. Due to lack of adaptation ability of the new product to the changed needs of the
markets, etc.
a) Market entry pricing strategy
b) Niche marketing
c) Product line
d) Importance of understanding consumer behavior
e) Marketing mix
Answer4 (a)
(a) Market-entry pricing decision is a pricing strategy that a marketer follows while
entering to the market for the first time. Under this circumstance, there may be two
alternative pricing strategies – market penetration pricing and market skimming
pricing.
i. Market penetration pricing strategy: Market penetration pricing involves setting
low price for the new product in the initial period with a view to penetrate the
mass market immediately and thus obtain a large sales volume and larger market
share. After the market for the product is established, price will gradually be
increased.
ii. Market-skimming pricing strategy: Market-skimming pricing involves setting
high price for a new product in the initial stage assuming that the customers will
pay high price for the new product. But with an increase in competition, the initial
price will be lowered to meet competition and the changed demand.
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Answer 4(b)
A niche is more narrowly defined group seeking a distinctive mix of benefits. Marketers usually
identified niches by dividing a segment into sub-segments. For example, the segment of heavy
smokers includes two niches: those who are trying to stop smoking and those who don‟t care.
In an attractive niche, customers have a distinct set of needs; they will pay a premium to the firm
that best satisfies their needs: the niche is not likely to attract other competitors; the nicher gains
certain economies through specialization and the niche has size, profit and growth potential.
Answer4 (c)
Product line is a group of closely related products. They perform similar functions, are sold to
the same customer groups, are marketed through the same channels and fall within given price
ranges. Product line strategy includes product line length, product line modernization and line
featuring strategies. For example, if any bakery shop offers verities of bakery product that is
called product line strategy.
Answer4 (d)
Buyer behavior refers to the activities and actions expressed by the buyer or potential buyer
while selecting, buying and using the product. Understanding buyer behavior is a difficult task
for the marketer because it involves, to a great extent, the psychological phenomenon. which is
difficult to understand. Though it is difficult to understand, the marketers need to understand the
buyer behavior properly to formulate a suitable marketing program. The reasons behind the need
of understanding buyer behavior are –
i. Different persons and communities have different needs because they live in different
environment.
ii. Their needs go on changing and may demand different goods and services in different
situations;
iii. different persons may demand different goods and services at the same time;
iv. Some needs are fulfilled while some are not.
v. Degree of need fulfillment, by and large, depends upon the marketing environment
that exists in the market;
Answer 4(e)
The term marketing mix was coined by Professor Neil Borden. Marketing mix is the set of
marketing tools that the firm uses to pursue its marketing objectives in the target market.
Marketing mix is a blend of product, price, place and promotion tools. Thus, it is popularly
known as four Ps‟ of marketing which was popularized by Professor McCarthy. Nowadays, four
P‟s has expended to seven Ps‟ by adding people process and physical evidence especially for
service marketing.
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It is defined as the refinement of process costing. It is concerned with the determination of the cost of
each operation rather than the process. In those industries where a process consists of distinct
operations, the method of costing applied or used is called operation costing. Operation costing offers
better scope for control. It facilitate the computation of unit operation cost at the end of each operation
by dividing the total operation cost by total input units. It is the category of the basic costing method,
applicable, where standardized goods or services result from a sequence of repetitive and more or less
continuous operations, or processes to which costs are charged before being averaged over the units
produced during the period. The two costing methods included under this head are process costing and
service costing.
Suggested Answer
Time Allowed – 1.5 Hours

Section -'A'
Amit Amatya, a PhD scholar in International Business Communication is requested
by a reputed multinational company for preparing and presenting a paper in their
annual celebration on 'promoting intercultural communication in the diverse
workplace'. The administration director of the company has also informed Mr
Amatya that conflicts usually arise in their workplace without any apparent reason.
According to the director, no significant attention was paid towards communication
aspect in the beginning, but they have come to realize now that the main cause of the
usual conflicts in the operational level is lack of proper communication among the
staff, who represent different cultural and national backgrounds.
Mr Amatya is provided with the required data, and is requested to suggest some
important strategies through the presented paper to promote intercultural
communication in the company. From a preliminary survey Mr Amatya has found
that the company has more than one hundred employees having at least twelve
nationalities. He is now expecting to learn more about the codes they use while they
are in work and the approach they take while they make decisions.
Questions:
a) Mr Amatya is expecting to learn from the company administration more about
the codes the staff use while they are in work and the approach they take while
they make decisions. Now, write an e-mail on behalf of Mr Amatya to the
administration director asking about the information that he is expecting to learn.
b) In this specific context, what strategies of intercultural communication do you
think will be involved and discussed in the presentation of Mr Amayta?
c) Do you believe that conflicts arise in the workplace due to the lack of proper
communication? What can be done to overcome such conflicts?
Answer:
a)
From: discover.amatya@gmail.com
To: admns.sony@yahoo.com
Sub: general information
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Dear Mr. Agrawal,

I received what you wrote about the current situation of your diverse workforce.
I'm working on the same paper that I'm asked to present at the annual ceremony.
I'd be much pleased if you sent me some information about the variety of code
you and your staffs use during work, and about the approach you adopt while
making important decisions. Please, make it clear whether you use multiple
languages, or international codes, or any others. Similarly, please also mention
whether you involve your staff in the important in-house decisions or not. If you
do so, which approach do you adopt?
Regards,
Amit Amatya
b) The researches have pointed out that intercultural communication in the diverse
workplace can be managed as an organizational asset with some specific
efforts and strategies. In order to reduce the misunderstandings caused by work
place diversity, cross cultural communication networks need to be established.
The followings are some of the important strategies that can be adopted for the
management of the cultural diversity in a workplace, and that can be involved
and discussed in the presentation:
 Promoting cross-cultural relationship between/among people of diverse
cultures working in diverse work situation, each respecting each other‘s
cultural norms and values,
 Changing traditional cultural perceptions incompatible with the changing
needs of today with the help of frequent meetings and training programs,
 Allowing different languages for official work. Cultures of even minorities
need to be acknowledged,
 Conducting seminars, workshops, etc. to familiarize people with each other,
 Building cohesive multi-cultural work teams, and
 Creating a corporate culture that can accommodate diversity to maximize the
potential of the workforce.
c) Obviously, conflicts arise in the workplace due to the lack of proper

communication systems and channels in an organization. Communication is one
of many causes of conflict in a workplace. In the multicultural context as in the
given case, lack of proper communication may create very serious
misunderstandings and conflicts among the co-workers. However, conflicts can
be managed with the help of appropriate skills and strategies. Firstly,
intercultural communication should be made easy and effective in the diverse
workplace. Similarly, people need to be trained not only about verbal
communication tools but also about nonverbal and paralinguistic ones.
Additionally, values, beliefs and practices of each culture should be equally
acknowledged in order to overcome such conflicts. International code can also be
much useful. Stories, songs, videos, etc. can be exposed to the people so that
they can understand each other‘s cultures, values and practices.
2. Your friend is going for an interview. What suggestions will you give him / her for
better performance?
Answer:
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The following are few tips that would help him give a better performance in an
interview: (Examinees may write any ten of the following points, or any other
significant points.)
 Be well prepared.
 Brush up your subject and general knowledge.
 Memorize your resume.
 Know about the company.
 Dress appropriately.
 Be smart, clean, and well groomed.
 Carry a briefcase or neat folder containing all relevant papers.
 Show up 10 – 15 minutes early. In case you feel you may get delayed, callup and
inform.
 When you meet your interviewer(s), shake their hands confidently.
 Stay calm, don not fidget or twiddle your thumb.
 Be polite.
 Never chew gum or smoke during the interview.
 Be yourself, be honest.
 Show a real interest in the job.
 Be aware of all the answering techniques.
 Do not answer a question you did not understand; ask for clarification first.
 Speak clearly using positive words/phrases such as enjoy, enthusiastic,positive
attitude, excellence, striving to be my best, etc.
 Appropriately use the top five: non‐verbal eye contact, facial expression,posture,
gestures, and space.
 In the end, restate your interest in the job.
 Smile and say ‗thank you‘.
 Tell them how you look forward to seeing them again.
 Shake hands firmly.
 Tell them how much you enjoyed the interview.
3. What are the important points to remember while writing for an international audience?
Answer:
Start and finish with courtesy - In many cultures, building a good relationship is
more important than any other part of business communication. So be polite and
courteous, especially in openings and closings.
Use short, one-idea sentences - You‘re less likely to create a grammatically
confusing sentence if it‘s short and has only one idea in it.
Beware of using metaphors - People who speak little English often take metaphors
literally and get confused. Avoid writing ‗The market in your area has a lot of low-
hanging fruit‘ or ‗We‘ve been doing some blue-sky thinking‘.
Prefer one precise word over a few short ones - Prefer one precise word, such as
‗meet‘, over two short words, such as ‗run into‘. Those combinations of small words
are difficult for international readers to understand, especially if they take each of the
two words literally. ‗The problem should blow over in a week‘ might confuse
someone (‗Is it windy?‘); whereas ‗The problem should pass in a week‘ will work
better.
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Avoid double negatives - In some languages, a double negative is a very strong ‗no‘.
If you write ‗The visit was not unproductive‘, your reader might think the visit was a
disaster.
Avoid humor - What our culture finds funny could easily be offensive in another
culture. Also, remember that puns usually mean nothing to someone who is
unfamiliar with English.
Use one word to name one thing - Pick one word to name something, and stick with
it. For example, if you say ‗report‘, don‘t add in ‗paper‘, ‗research‘, or ‗document‘
for elegant variation. You‘ll only confuse your reader.
Write in proper nouns rather than ‗she‘ or ‗her‘ - Use names more than pronouns.
Write ‗Please give the report to Shyam, not ‗Please give it to him‘. An international
reader could have trouble working out what ‗it‘ refers to and who ‗him‘ is.
Write dates in full - Write dates in full to avoid confusion, for example, write 6
February 2011, not 06/02/11 or 02/06/11.
4. Major strategies for organizing information in the analytical reports commonly
include focusing on conclusions, focusing on recommendations, and focusing on
logical arguments. Critically examine the relevance of each of these organizational
strategies of analytical reports.
Answer:
Three Major strategies for organizing information in analytical reports are (1)
focusing on conclusions (2) focusing on recommendations and (3) focusing on
arguments. When one is writing an analytical report for those audiences who are
receptive in nature, information can be organized focusing on writer's conclusions
and judgments based on experience and research. The audiences are likely to trust
such judgments or conclusions, and may agree with the writer. The report can be
structured around those conclusions and findings, using a direct approach. However,
focusing directly on conclusions does have potential drawbacks. It may make
everything the writer says seem too simple and personified. The audiences can have
reservations about the writer's conclusions.
When the analytical report is more concerned to what ought to be done in a

particular situation than to what is existing, the report can be structured focusing on
recommendations. According to this approach recommendations will be unfolded
directly by following different steps of analysis and different modes of conclusions.
The report writer needs to be much sensible of whether the recommendations would
invite any risk in the business in future. Reports can be organized focusing on
arguments, too. Instead of drawing clear conclusions and recommendations the
report may also present certain logical analysis of specific situations along with
many different alternative ideas, solutions or options. More scientific approach is
adopted in such type of organization strategy. When the report aims at collaborative
and persuasive issues, the focusing on arguments approach would be more suitable.
However, this strategy may create certain confusions among the options. So, it seems
better if the writer gives specification for each argument or option in the report.
5. Briefly explain any FOUR of the following:
a) Internal- operational communication
b) Conflict and its possible benefits
c) Proxemics
d) Group communication
e) Executive summary
Answer:
a) Internal-operational communication is a structured communication that takes
place within an organization that directly relates to achieving the organization‘s
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work goal. It is built into organizations plan of operation. Most of the company
information might have been stored in central database such as organization‘s
MIS from where all employees may access the necessary information.
For example, a supervisor makes some decisions regarding the daily operations
which have to be passed to the employees. The information may be sent in the
form of letter, email, memo, and so on. When such information is transmitted to
the employees, it can be an instance of internal-operational communication.
b) Conflict is a familiar phenomenon. When interests clash, the result is conflict.

According to a survey, mangers are likely to spend about 20 percent of their time
dealing with conflict. In traditional organizational structure, conflict is more
common. In democratic or participatory style of management, it does not arise
much.
Though people often take conflict as negative, sometimes it may bring positive
outcomes. If managed properly, conflict may be turned into opportunity. Conflict
is considered a fuel for change. It helps us realize our lacking. It may also foster
creativity helping us think out of the box. It may also create a pressure for higher
quality decision making. As we all know smooth sea does not make a skilled
mariner, conflict, if handled properly, may produce desired outcome in an
organization. Poor communication, incompatible goals, different interests, lack
of resources, struggle over values etc. may cause conflict. If we recognize the
real cause behind conflict, we may be able to develop better relations.
c) Proxemics is the study of our use of personal space. This nonverbal language
may differ from culture to culture but it has a great significance. Edward Hall
says ―Cultures differ substantially in their use of personal space.‖
Distance Description Voice
Intimate Touching to 18 Inches Private situation with whisper

people who are
emotionally Close.
Personal 18 inches to 4 Feet Handshake Distance. Soft voice
Social 4 to 12 feet Distance between Full voice

customers and people.
Public 12 feet Teacher in a classroom. voice
d) Group communication is an interchange by participants in an activity. It involves

exchange of ideas, feelings, emotions, data and all forms of information, which
are mutually understood by all participants,
Group communication is interactive in nature; hence it elicits a constant feedback
process among members by way of seeking and receiving clarifications among
them.
It enables all uncertainties to be removed from the subject of communication and
it unifies the group members making them cohesive and in agreement with one
another.
e) Typically, an executive summary will

 be possibly 5-10% or so of the length of the main report
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 be written in language appropriate for the target audience
 consist of short and concise paragraphs
 start with a summary
 be written in the same order as the main report
 only include material present in the main report
 make recommendations
 provide a justification
 have a conclusion
 be able to be read separately from the main report
 sometimes summarize more than one document
Marketing
Suggested Answer

Section -'B'
6. Read the following case and answer the questions given below:
‘Holiday at home’: Managing a media campaign
Because of the strong Australian dollar and the growing number of low-cost airlines, more and
more Australians were flying to Asia for their holidays. To encourage Australians to ‗holiday at
home‘, a large advertising budget was given to the Department of Tourism. The marketing
manager, wanting get the campaign running quickly, split the department into teams-one team
for television, another for radio, a third for print media, a fourth for online advertisements and a
final group for outdoor. At the end of two weeks, the groups were asked to present their
proposals. Each team had come up with different ideas but none fitted within the allocated
budget. The manager looked over the plans and had no idea what to do but they were so
different that it was impossible to fairly compare one against another—and integrating the
campaigns into a whole looked impossible. The Marketing Manager had no choice but to set the
proposals aside and start again, looking at the campaign as a whole. Trying to rush things and
failure to take an integrated approach had ended up delaying the progress instead of making it
easier.
a) On the basis of above case, analyze the objective of the media campaign?
b) Was the step taken by marketing manager correct? Give your opinion.
Answer 6(A)
The main objective of the media campaign should be to encourage the Australians to spend their
holidays in their own country. As mentioned in the above case, more and more Australians
were flying to Asia for their holidays because of the strong Australian dollar and growing
number of low-cost airlines. Strong Australian dollar indicates strong economic condition or
purchasing power of the Australians and low-cost airlines definitely motivates them to visit
Asia which indicates challenges to Department of tourism. Thus, to discourage them to visit
outside Australia and to enjoy the increasing purchasing power of Australians, because of the
strong Australian dollar, it was inevitable to retain them within the country. So, the objective of
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the media campaign should be promoting domestic tourism i.e. encouraging Australians to
spend their holidays in their own country.
Answer 6(B)
The step taken by marketing manager was not correct. For quick campaign, marketing manager
has divided the department into various teams on the basis of media. But the fact is, each
medium has its own merits and demerits. If each team works separately, idea generated for one
medium cannot work for other media. There is also possibility of conflicts among the teams for
resources and implementation of their own ideas. So, marketing manager must focus on
integrated marketing communication for better coordination and effective utilization of
resources. They must follow steps of developing effective communication i.e. identifying target
audience, determining communication objectives, designing message, allocating budget and
only selection of media. Mere selection of media and creation of ideas by different team
independently is not appropriate for effective promotion.
7.
a) Discuss the meaning of marketing mix and its role in marketing decision
making.
b) Show your acquaintance with the term marketing environment? Describe the
demographic environments of marketing in Nepalese context.
Answer 7(A)
Marketing mix is the combination of the four major components that comprise a
company's marketing program. Marketing mix is the core of marketing program.
Marketing mix includes major components and supporting components. Major
components include product, price, promotion, and place; while supporting
components include process, people and physical evidence.
The main role of marketing mix in marketing decision making includes –
i. Help identifying the right product to the customers that can satisfy the expected
needs and expectations of the target customers;
ii. Help setting the best price for the product that can be affordable and acceptable
to the target customers;
iii. Help communicating the target customers about the products through the right
promotion tools such as advertising, publicity, sales promotion, personnel
selling, and public relations;
iv. Help distributing goods to the right place where the target customers want to buy
the products;
v. Help providing the required services at right time;
vi. Help developing relation with the customers so that the customers can deal with
the marketer friendly without any hesitation;
vii. Help maintaining the internal environment of the organization in an attractive
way so that it can motivate the customers in visiting the office premises
repeatedly and buy goods from the organization;
Answer 7(B)
A company‘s marketing environment consists of all the factors and forces outside marketing
that affect marketing management‘s ability to build and maintain successful relationships with
target customers. Successful companies know the vital importance of constantly watching and
adapting to the changing environment. As we move into the twenty-first century, both the
customers and marketers wonder what the future will bring. The environment continues to
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change rapidly. More than any other group in the company, marketer must be trend trackers and
opportunity seekers.
According to Professor Philip Kotler, ―marketing environment comprises all the actors and
forces outside marketing that affect marketing management‘s ability to develop and maintain
successful transactions with its target customers.‖
perspectives on the marketing environment, namely the macro environment and the micro
environment.
Demography is the study of human population in terms of size, density, location, age, gender,
race, occupation, and other statistics. The demographic environment is of major interest to
marketers because it involves people and people make up markets.
The world population is growing at an explosive rate. It now totals more than 6.3 billion and
will exceed 8.2 billion by the year 2030. The world‘s large and highly diverse population poses
both opportunities and challenges.
The explosive world population growth has major implications for business. A growing
population means growing human needs to satisfy. Depending on purchasing power, it may also
mean growing market opportunities. Thus marketers keep close track of demographic trends
and developments in their markets, both at home and abroad. They track changing age and
family structures, geographic population shifts, educational characteristics and population
diversity
Demographic environment is one of the major forces of Nepalese marketing environment which
includes size, growth and distribution of population, age mix, urbanization and migration.
Population limits the size of the market. According to 2011 census, total population of our
country is 264, 94, 504 showing population growth rate of 1.35 per annum. Similarly, total
number of households in the country is 54,27, 302. Of the total population, terai constitutes
50.27% and hills and mountain constitute 43% and 6.73% respectively. Among the five
development region central development region has the highest population (36.45%) and far
western development region records the lowest i.e.9.63%. According to 2011 census, population
density at national level is 180 per square kilometer. The highest population density (4416 per
square kilometer) is found in Kathmandu district and lowest in Manang district which is 3 per
square kilometer. Similarly, fastest decadal population growth rate is found in Kathmandu
district (61.23%) and least in Manang (-31.80%)
Nepal is a country of young population. Among the total population 43% belongs to under 15
years of age and working age population aged 15 to 59 years are 57% of the total population.
Rate of urbanization is very slow in our country. According to 2011 census, urban population is
45,23820 which constitutes 17% of the total population. Recently, Nepal Government has
declared new municipalities. Number of municipalities in the country has reached 199.
Migration is the worldwide trend and Nepal is not the exception. The migration of Nepalese
people mountains and hills to terai and rural to suburban and urban area is increasing day by
day. Migration of Nepalese youth for foreign employment is also increasing. Market has shifted
with the shift in population.
8.
a) Explain the meaning and process of market segmentation.
b) Differentiate consumer buying from organizational buying
Answer 8(A)
Market segmentation is a process of dividing the total market for a good or service into several
smaller, internally homogeneous groups. It is based on customer oriented philosophy. No
marketer can satisfy the needs of all customers by developing single marketing mix. The
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essence of segmentation is that the members of each group are similar with respect to the factors
that influence demand. In segmentation, we first identify the wants of customers within a
submarket and then decide if it is practical to develop a marketing mix to satisfy those wants.
According to Philip Kotler, ―Market segmentation is the subdividing of a market into
homogeneous subsets of customers, where any subset may conceivable be selected as a market
target to be reached with a distinct marketing mix.‖
Market segmentation is a systematic process which can be explained as follows:
i. Market survey: Without better information, market segmentation is not possible. Market
survey is conducted to obtain better information about the market characteristics. In
market survey information such as customers‘ need, taste, preferences, product usage
rate and pattern, demand size, loyalty status, brand awareness etc are collected.
ii. Segment identification: After market survey, collected information are analyzed by
using mathematical and statistical tools. Factors affecting market demand are classified
into major and minor factors. Homogeneous groups of customers are clustered to
identify market segments.
iii. Segment profiling: Appropriate variables for segmentation are identified. Variables may
be demographic, geographic, psychographic or behavioral variables. Operating variables
and purchase related variables can also be used for industrial market segmentation.
Each identified segment is profiled in terms of similarities and dissimilarities in the
market demand and consumer characteristics. At the end of this stage, the decision
makers have various alternative market segments.
iv. Segment selection: After the careful evaluation, company will select one or more
segments as per their marketing strategy. Selected segment is considered as target
market. While evaluating and selecting, firms should consider segment attractiveness,
desired market coverage, organizational objectives and resources, government rules and
regulation etc.
Answer 8(B)
There are certain fundamental differences between consumer buying and organizational buying,
they are as follow:
i. In case of consumer buying, demand is created from insight of the individual‘s mind,
while demand is derived for organisational buying.
ii. Demand for consumer products is elastic, while demand for business products is
inelastic i.e., there is very little change in demand in response to price change.
iii. Demand in consumer buying is less fluctuating while demand is widely fluctuating for
organisational buying.
iv. Consumer buying is not regulated by law. The individual customers can buy goods
whenever required. In case of organizational buying, it is a regulatory purchase i.e.,
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organizations buy goods according to the government and organization‘s laws, rules and
regulations.
v. In case of consumer buying, consumers may be less informed about the goods; while in
case of organizational buying, buyers are well informed about what they are buying.
vi. Consumer buying decision may be frequently changing. Organizational buying decision
aims at a long-term relation with suppliers. Organizations generally do not frequently
change their suppliers.
vii. Consumer buying involves frequent purchases; while organizational buying involves
infrequent purchase. Organizations do not buy goods frequently as an individual buyer
does.
9.
a) Describe the meaning of branding and the reasons for branding a product.
b) What is advertising? Explain the main features of advertising.
Answer 9(A)
Branding is a process of determining and using a brand name or a legal term to the newly
manufactured product that help identifying and differentiating product in the market; it also
helps protecting the interesting of the manufacturer against duplication or brand piracy in the
market. Branding may involve not only the name or legal term; it also involves special design,
colors, symbol, or the combination of all these elements.
Most manufacturers or marketers do branding their products for the following reasons _
 To differentiate a firm's products from those of competitors;
 To make convenience in shopping;
 Brands refer the prestige of the manufacturers, sellers; and also give prestige to the
consumers when they use popular brands;
 To legally protect the company;
 To identify the exact market for their products;
 To assure regular satisfaction to the customers;
 To symbolize as a quality product;
 To reduce price comparisons.
Answer 9(B)
Advertising is any paid form of non-personal communication, usually delivered through mass
media or tools by an identified sponsor. It involves a variety of media including radio,
television, newspapers, magazines, motion pictures, brochures and booklets, posters and
leaflets, audio-visual materials, symbols and logos, directories, etc.
The distinct features of advertising include –
i. It is a Mass Communication
ii. It is Informative in Action
iii. It is a Persuasive Act
iv. It is a Competitive Act
v. It is a Paid Form of Communication
vi. It has an Identified Sponsor
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vii. It is Non-personal Presentation
10. Briefly explain the following:

a) Meaning of distribution
b) Relationship marketing
c) Innovative product.
d) Economic factors affecting the consumer buying decision.
e) Psychological pricing
Answer 10(A)
Distribution includes all the various activities the company undertakes to make the product
accessible and available to target customers. It involves the marketing channel and physical
distribution. Marketing channel makes the product available to the customers. Physical
distribution makes the product accessible to the channel members and customers. Distribution is
also called the ―the other half of marketing.‖ It fulfills the gap between the producer and
consumer
Answer 10(B)
Relationship marketing is one of the emerging concept of modern marketing. Relationship
marketing is building long term mutually satisfying relations with customers in order to earn
and retain their long term loyalty. In relationship marketing, customer is regarded as a partner in
creating value. Relationship marketing is a long term partnership between marketer and
customer. Both parties collaborate on identifying needs and designing marketing mix for
customer satisfaction and organizational goal achievement.
Answer 10(C)
Today's business firms should develop and offer new product to retain in the hyper competitive
market. New product may be in the form of modified product, improved product and innovative
product. Innovative products are those products which are developed and introduced in the
market for the first time, not previously sold by any firm. Development of innovative products
involves high costs, risks, efforts and time required for profitability of the company.
Answer 10(D)
Economic factors affecting the buying decision of the buyer includes –
i. Level of Personal Income
ii. Income of Other Members of the Family
iii. Expectation of Income in Future
iv. Availability of Liquid Assets
v. Availability of Credit Facility to the Consumer
vi. Past-Expenditure Habits
Answer 10(E)
Psychological pricing is one of the popular pricing strategy which encourages emotional buying.
It influence buyers to perceive the price favorably. Psychological pricing includes prestige
IUJ
1528
(74)
pricing, odd-even pricing, psychological discounting, customary pricing and promotional
pricing. 99 pricing is one of the example of psychological pricing.
Income Tax & VAT

Suggested
Roll No……………. Maximum Marks - 100

Time Allowed - 3 Hours
Marks
Attempt all questions. Working note should form part of the answer.
2.
a) Mrs. Indira Dahal was retired on 1st Magh, 2071 after completing 22 years of
private banking service from Kathmandu. She submits the following details with
respect to her employment for the Income Year 2071/72.
i) Monthly salary Rs. 35,000

ii) Two months' salary is provided for dress and festival, one month for each.
iii) She has obtained overtime allowance of Rs. 20,000
iv) The bank deducts 10 % from her salary and contributes 20 % of her salary to
an approved retirement fund.
v) She has car facility from the office for all purpose. Expenses Rs. 1,000 per
month and salary of the driver of Rs. 12,000 per month were paid by the
bank.
vi) Compensation received as per Employee Rule Rs. 100,000
vii) Insurance premium paid by Employer on her behalf, Rs. 25,000 that include
Rs. 12,000 for her policy and Rs. 13,000 for her son's policy.
viii) The bank makes payment equivalent one month salary to the employees
who work for full 12 months during the years.
ix) The bank has provided her with accommodation facility on leased house for
which 2 % of salary was deducted. Actual rent paid by the bank was Rs.
35,000 per year.
x) On the retirement, she has entitled to receive gratuity amount equivalent to
one month salary for each year services.
xi) The company paid bonus to her equivalent to two month's salary related to
the Income Year 2071/72 on 20th Aswin 2072.
She has only income from this employment and opted for single. You are
required to assess income from employment and her tax liability. 10
IUJ
1529
Suggested Answer
Marks
Section -'A'
1. Read the following case carefully and answer the questions given below: (3+3+4=10)
Roshna is the manager of the accounting department and Rikesh is the manager of the
sales department for the production company. This is a fast-growing firm, and the
staff of the accounting department (11 employees) is often overwhelmed with work.
Since the accounting department is located immediately next to the credit department,
NirmalRana, the administrative assistant in credit, sometimes works on journal entries
assigned to him by Roshna.
The company has experienced especially rapid growth over the past six months,
which has caused everyone to be busier than usual. With the increase in sales volume,
the credit office is under pressure to process applications more quickly, and Nirmal is
available to help Roshna out with accounting overflow less often.
Roshna complains to Rikesh that she needs Nirmal to work in accounting more than
he needs Nirmal in credit department.Rikesh’s response is “If I can’t move the credit
applications through the pipeline in a timely manner, soon there’ll be no need for an
accounting department, because this company will be out of business.”
a) What is the cause of this conflict?
b) If you were Roshna, how would you approach Rikesh in this situation?
c) What could Roshna do to gain Rikesh’s cooperation rather than make him
defensive?
Answer:
a) Roshna, a manager in accounting department, had been outsourcing a staff named
Nirmal from the credit department who later on stopped helping her due to the
sudden increase in the sales volume in his own department. Roshna thinks that she
needs Nirmal more than the credit department which Rikesh, the manager in Sales
Department out rightly rejects. This causes the conflict.
b) If I were Roshna, I would not have bluntly asked for an extra help from other
departments. Other departments also have their own responsibilities and I have no
right to say that my department is the busiest and most important one. Rather I
would have made a request to the higher authorities for a new employee for my
department.
c) Roshna must communicate properly to Rikesh. She may have to apologize for her
blunt remark which she made before. She should clarify with evidences toRikesh
why her department needs more staff. She must learn how to respect others. She
may need to talk to the higher authorities, if necessary, regarding her work
pressure.
ISV 1543
P.T.O.
(2)
2. What do you mean by ‘globalization of culture’? What can be some useful strategies
to promote cross-cultural communication in the globalized contexts of business
organizations? (4+6=10)
Answer:
In the current context of the rapidly changing world, culture is viewed, interpreted
and understood in the vast global perspective. Cross-cultural campaigns are
conducted in every sector such as business, education, communication, media, and so
on. Culture is being globalized in many ways. Such a trend of getting many different
cultures, styles and practices globalized is commonly known as globalization of
cultures. Basically media is responsible for globalization of practices in different
sectors of knowledge and life. People learn the ways of living and working from each
other in the today’s post -modern world. Globalization of the cultures involves three
primary things:
• Understanding culture in broader perspective,
• Promoting cross-cultural relationship between /among people of diverse cultures
working in diverse work situation, each respecting each other’s cultural norms and
\values, and
• Changing traditional cultural perceptions incompatible with the changing needs of
today.
Cross cultural communication should be promoted in the globalized context of the

world cultures. Work places are largely diverse in terms of cultures and practices. In
order to reduce the misunderstandings caused by work place diversity, cross cultural
communication networks need to be established. For the promotion of the cross
cultural communication, the following strategies can be adopted:
• Allow different languages for official work. Cultures of even minorities need to be
acknowledged.
• Conduct seminars, workshops, etc. to familiarize people with each other.
• No single language and working style may be a standard one; every language, and
working style is equally important.
• Design increasing meetings, useful for all cultures.
• Build cohesive multi-cultural work teams.
• Create a corporate culture that can accommodate diversity to maximize the
potential of your workforce.
3. What is the role of ethics in business communication? 10
Answer:
The role of ethics in business communication is the way in which ethical
considerations are applied to business communications. Ethics in business
communication may be from the management of the organization to the employees,
from the employees to the customers and suppliers, or between the organization as a
whole and the outside. In this sense, business communication may be viewed from
the internal communications within the business, or it may be viewed from the
perspective of the business entity and the outside.
Generally, organizations have methods of communicating with their employees or for

disseminating information to them. The communication within an organization may
be structured in such a way that the information may flow from the top to the bottom
through several channels, such as the human resource department. Ethics in business
communication means that the communication between the management and the
ISV 1544
(3)
employees must include the application of ethical standards during communication.
For instance, the management must be as clear as possible in the way they deal with
their employees by communicating to them the reasons for certain actions and
expectations. If the company has declared a large profit, for example, the
management must share the bonus in an equitable manner among the various
employees or communicate to them the reason for not doing so.
The application of ethics in business communication gives the employees a sense of

belonging and it encourages them to be more productive. Management in the
organization must also clearly communicate to the employees the type of ethical
standards that they must exhibit toward outside entities like customers, suppliers and
other classes of people who interact with the business. This includes the type of
instruction that the management has given to the employees on the way they must
communicate with the customers. In this sense, communication includes what they do
and say, or fail to say or reveal to customers.
The use of ambiguous words or the deliberate misrepresentation of the true situation
of events is a part of ethics in business communication. Some companies phrase their
offers to customers in such a way that the customers do not realize there are hidden
catches in the offer. An example of this is the offer of a very low interest rate on a
mortgage by a financial lender, without letting the customer understand that the
interest rates will go up in the future, or that the repayment terms may be changed by
the financial institution.
4. Working in groups may invite some problems and conflicts in an organization. What
can be five important measures for resolving the group problems? 10
Answer:
Working in groups allows sharing and exchanging of individual opinions, attitudes,
and knowledge about the subject of discussion, and encourages to make decision of
common consensus. It also ensures better result and performance in the organization.
However, it may sometimes invite problems and conflicts among the workers that
may lead to a serious and harmful result. In such condition, proper strategies for
overcoming group problems needs to be adopted.
One of the important ways of overcoming group problems is formulation and
implementation of group spirit, identity, limitations, and strengths. Regular meetings,
interactions, and sharing of problems can make group spirit permanent and strong.
Similarly, the group members should be ensured about their contributions, security,
and identity. For this personal lobbying and exerting personal influence must be
totally discouraged in the group.
The members of the group must be trained well about their group rules, ethics, and
responsibilities. Some other measures for resolving the group problems are: sufficient
physical facilities and psychological supports, sufficient opportunities for being
listened to, enough counseling and guidance programs, etc. The members of a group
need enough time to think and rethink about the issues they are discussing or arguing.
If they get time they can make proper corrections about their own arguments and
claims. This may help them minimize the conflicts and proble3ms in the group.
At last but not least, the group leader is also responsible for resolving the conflicts
and problems. The leader must play the role by listening to the voices of all the
members, and by giving them with right feedback and information. The leader is
always expected to have a role in steering the group towards the intended group
goals. He or she should help the group discussion proceed ahead without any
distractions, conflicts and problems.
ISV 1545
(4)
a) Nonverbal communication skills
b) Writing for an international audience
c) Executive summary
d) Paralanguage
e) Agenda and minutes in meetings
Answer:
a) Nonverbal communication skills:
Non verbal communication skills include communication aspects such as body
language, gestures, facial expressions, eye contact, etc., which do not make use of
words. These play strong role in the communication process.
While verbal communication is normally used for communicating information
and knowledge about events external to the speakers, non-verbal codes are used to
establish and maintain interpersonal relationships. It is considered more polite or
nicer to communicate attitudes towards others non-verbally rather than verbally,
for instance in order to avoid embarrassing situations.
b) Writing for an international audience:
Points to remember while writing for an international audience include:
- Start and finish with courtesy
- Use short, one-idea sentences
- Beware of using metaphors
- Prefer one precise word over a few short ones
- Avoid double negatives
- Avoid humor
- Use one word to name one thing
- Write ‘Joanne’ rather than ‘she’ or ‘her’
c) Executive summary
Typically, an executive summary will
• be possibly 5-10% of the length of the main report
• be written in language appropriate for the target audience
• consist of short and concise paragraphs
• start with a summary
• be written in the same order as the main report
• only include material present in the main report
• make recommendations
• provide a justification
• have a conclusion
• be able to be read separately from the main report
• sometimes summarize more than one document
d) Paralanguage:
Paralanguage refers to such features of communication which are not specific to a
particular language but with communication in general. These are nonverbal in
nature. They are not main features of language, but are useful to make
communication clear. These are not words or sentences. The features like voice
quality, pitch variation, etc. are paralinguistic features. Pause, speed, stress, etc.
are also the examples of paralanguage. They affect the meaning of discourse in
different languages.
e) Agenda and Minutes in meetings:
ISV 1546
(5)
An agenda is a list of meeting activities in the order in which they are to be taken
up. It usually includes one or more specific items of business to be discussed.
Agenda is important in a meeting since it prepares the chairman, prepares
attendees, creates an interest, clearly defines objectives, and provides a valuable
organizational tool. Agenda includes: meeting date, time, location, general
information, agenda/minutes approvals, agenda items with background/goals, and
summary/ Assignments.
Minutes are the instant written record of a meeting or hearing. They typically
describe the events of the meeting, starting with a list of attendees, a statement of
the issues considered by the participants, and related responses or decisions for
the issues. A minute is prepared as soon as possible after the meeting while
actions and discussions that took place are fresh in the writer’s mind.
ISV 1547
Marketing
Suggested
Marks
Section -'B'
Facebook Bakery Cafe is one of the popular Bakery shops situated at Jawalakhel,
Lalitpur. It was established in 2012 by Maya Pun, a retired government staff. It offers
varieties of bakery products along with tea and coffee. Its target market includes
students, pedestrians, housewives and staffs of different institutions situated at
Jawalakhel area. No price discrimination has been adopted by Maya since its
establishment. Growth and Profitability of the bakery shop was satisfactory. But
Inventory management was a great problem for Facebook Bakery Cafe. Maya had
been facing the problem of over and under stocking time and again in bakery
products. To manage the problem, she decided to consult with MBA students. A
group of MBA students of Kathmandu University with marketing specialization were
invited to visit the shop. After the visit, students recommended Maya to change the
pricing strategy. They suggested switching pricing policy from uniform pricing policy
to flexible pricing policy. They recommended her to offer 50% discount after 7 pm
for remaining stock. They also advised her to improve the physical infrastructure of
the cafe. Maya also interacted with students about promotional activities, packaging,
branding and competition. She changed her marketing program accordingly.
Now, Maya‟s profit and number of customers have increased amazingly. Inventory
problem has been solved and customer satisfaction and retention has increased.
Questions: (2×5=10)
a) What is the main problem faced by the Facebook Bakery Cafe?
b) Were the recommendations provided by the students correct? Give your opinions.
Answer a) The main problem faced by Facebook Bakery cafe was poor inventory management. Bakery
products are highly perishable products. Life of bakery products is short. We cannot stock bakery
products for longer time. So, inventory management for perishable products is challenging because
it is difficult to forecast demand for perishable products. It is more challenging in case of fixed
pricing policy. As Bakery shop has adopted uniform pricing policy, such problem has arisen. Thus,
in the given case the shopkeeper has faced the over and under stoking problem.
b) Yes, recommendations provided by the students were correct to a large extent because Bakery shop
is related with an offer where physical goods as well as services both are equally important. And
they also recommended adopting flexible pricing policy which is relevant. 50% discount can solve
the over stocking problem. But the recommendations cannot solve under stocking problem.
Improvement of physical infrastructure is not enough. They must think about people mix which is
related with internal marketing and interactive marketing. Service delivery process is equally
important and relevant component of service marketing which we cannot ignore while designing
service marketing mix.
MYH 1548
P.T.O.
(2)
7.
a) Give the meaning of marketing environment. Also explain the micro and macro
environment of marketing. (2+3=5)
b) What is marketing mix? Explain its components. (2+3=5)
Answer a) A company‟s marketing environment consists of all the factors and forces outside marketing that
affect marketing management‟s ability to build and maintain successful relationships with target
customers. Successful companies know the importance of constantly watching and adapting to the
changing environment. As we move into the twenty-first century, both the customers and marketers
wonder what the future will bring. The environment continues to change rapidly. Marketer must be
trend trackers and opportunity seekers.
According to Professor Philip Kotler, “marketing environment comprises all the actors and forces
outside marketing that affect marketing management‟s ability to develop and maintain successful
transactions with its target customers.”
The marketing environment surrounds and impacts the organization. There are two key
perspectives on the marketing environment, namely macro environment and micro environment.
The micro environment influences the organization directly. It includes suppliers that deal
directly or indirectly, customers and other stakeholders. Micro describes the relationship between
firms and the driving forces that control this relationship. It is a more local relationship, and the firm
may exercise degree of influence. According to Philip Kotler,” Micro Environment consists of the
forces close to the company that affect its ability to serve its customers – the company, suppliers,
marketing channels, customers, competitors and publics.
The macro environment includes all the factors that influence the organization and its marketing mix
but that are out of direct control. A company does not generally influence laws, population or
economy. It is continuously changing and the company needs to be flexible to adapt. “Macro
Environment consists of demographic, economic, natural, technological, political and cultural forces.
Macro environment provides opportunities and threats to the marketing while micro
environment provides strengths and weaknesses to marketing.
b) Marketing mix is the combination of the four major components that comprise a company's
marketing program. Marketing mix is the core of marketing program. Altogether, marketing includes
seven Ps including product, price, place, promotion, people, process, and physical evidence. The first
four components are the major components and the last three components are the supporting
components. Management of supporting components is essential for the betterment of service sector
business. The main objective of supporting components is to support and strengthen the performance
of the major components of marketing mix.
 People component gives emphasis on establishing good relations with the company staff and
customers;
 Process component gives emphasis on adopting suitable production process, establishing and
maintaining quality control standards in performance, and making regular contact with the
customers and understanding their expectations.
8.
a) Who are marketing intermediaries? Explain in the context of distribution
management. (2+3=5)
b) What is marketing information system? Explain internal record system and
marketing intelligence system in short. (2+3=5)
MYH 1549
(3)
Answer a) Marketing intermediaries help the company to promote, sell, and distribute its goods to final
buyers. They include resellers, physical distribution firms, marketing services agencies and
financial intermediaries.
Resellers are distribution channel firms that help the company find customers or make sales to
them. These include wholesalers and retailers who buy and resell. Selecting and partnering with
resellers is not easy. Manufacturers now face large organizations such as Wal-Mart, Bhatbhateni
departmental store, blue bird departmental store. These organizations frequently have enough
power to dictate terms or even shut the manufacturer out of large market.
Physical distribution firms help the company to stock and move goods from their point of
origin to their destination. Working with warehouse and transportation firms, a company must
determine the best ways to store and ship goods, balancing factors such as cost, delivery, speed,
and safety.
Marketing service agencies are the marketing research firms, advertising agencies, media, and
marketing consulting firms that help the company to promote its products to the right markets.
Financial intermediaries include banks, credit companies, insurance companies and other
businesses that help financial transactions or insure against the risks associated with the buying
and selling of goods. Most firms and customers depend on financial intermediaries to finance
their transactions. Like suppliers, marketing intermediaries form an important component of the
company‟s overall value delivery system. In its quest to create satisfying customer relationships,
the company must do more than just optimize its own performance. It must partner effectively
with marketing intermediaries to optimize the performance of the entire system.
b) The term „Marketing Information System‟ refers to a program for managing and organizing
information collected by an organization from internal and external sources. Marketing assesses
the information needs and develops the required information regarding competition, prices,
advertising expenditure, sales and distribution. Marketing information system is a continuing and
interacting structure of people, equipment and procedures to gather, sort, analyze, evaluate, and
distribute pertinent, timely and accurate information for use by marketing decision makers to
improve their marketing planning, implementation and control. Components of marketing
information system are internal record system, marketing intelligence system, decision support
system and marketing research which are explained as follows:
i. Internal Record System: Internal record system gathers various data and information
generated within the organization. It is the internal database maintained by the organization.
They consist of customer related records such as orders, invoices, inventory records, shipping
documents. Sales related records, annual reports and financial reports are also useful. Data
collected by internal record system are less costly, and reliable.
ii. Marketing Intelligence System: Marketing Intelligence system provides information about
everyday happenings in marketing environment. It involves environmental scanning. It is a
set of procedures and sources used by managers to obtain everyday information about
pertinent developments in the marketing environment. The sources of marketing intelligence
are: marketing managers, sales force, middlemen, commercial detectives, marketing
information section etc.
9.
a) What is packaging? Explain the essential features of a good packaging. (2+3=5)
b) What is pricing? Explain the importance of pricing to firms. (2+3=5)
Answer a) Generally, packaging is an act of designing or producing the package for a product. In other
words, packaging can be defined as the process of designing the container for a product.
MYH 1550
(4)
Packaging includes all activities required for designing and producing the container or wrapper
for a product. More specifically, packaging is the science, art, and technology of enclosing or
protecting products for distribution, storage, sale, and use.
A good package should pose the following characteristics:
 It should be economical It should involve low cost to manufacture, to fill, and to remove or
to handle.
 It should be functional It should perform all those functions it is supposed to do.
 In should be communicative It should disseminate information to the customers and other
parties concerned regarding brand, use and features of products, place and date of
manufacture, name of manufacturer, etc.
 It should be attractive A package should be quite attractive since one of the main objectives
of packaging is to attract customers. In order to make a package attractive, color combination
should be used. It should have good design, it should use, attractive pictures or symbols or
graphic presentation.
 It should be eco-friendly It should be environmentally friendly. A package should be
produced by such materials which do not create environmental pollution. The green
revolution promotes use of environmentally friendly package.
b) Price is the exchange value of the product or service expressed in terms of money. It is the
amount of money needed to buy the product. In another words, price is the amount of money that
customers pay for the product or service. It is what customers pay for what they get.
According to Pride and Ferrel, “price is the value placed on what is exchanged.”
Similarly, according to Philip Kotler, “ price is the amount of money charged for the product or
service.”
Price is expressed in various terms such as: interest, rent, fare, fee, salary, commission, tax etc. It
is usually expressed in money.
Pricing refers to an act of determining the exchange value between what buyers get and what the
sellers receives. It is a process of setting prices for various products and services. In short,
pricing is the act of determining exchange value of a product or service.
Pricing involves formulating pricing objectives, policies and strategies, setting base price,
determining discount and commission etc. Pricing is the most visible but secretly performed
activity in a business organization.
Importance of pricing to firms can be explained as follows:
1. Price determines revenue and profit
Price can be changed quickly by firms. Changes in price change the revenue and costs which
determines profits. Low prices reduce revenue. High prices of inputs discourage production.
2. Price determines market share
Price is a major determinant of product demand. It is used to manage the different stages of
product life cycle. Generally price is reduced to increase the demand and market share.
3. Non-price competition
Non-price competition refers to product, place, and promotion based competition. Price can be
effectively used for product differentiation, positioning and value addition. Higher price product
is associated with status, prestige and quality while lower priced product is related with
economy.
4. Competition
Price is a major tool to deal with competitors. Price is reduced to discourage competitors. Firms
lower price to attract large number of price-sensitive customers.
MYH 1551
(5)
a) Trade Mark
b) Unsought product
c) Concept and types of test marketing
d) Needs
e) Promotion
Answer a) Legally protected brand is called trademark. In other words, a trademark is a brand that has been
adopted by a seller and given legal protection. A trademark includes not just brand mark but also
the brand name. A brand name or brand mark can be converted into a trademark only when they
are registered with the concerned government office. Thus, all trademarks are brand, but all
brands are not trademark.
b) Unsought products are consumer products that the consumer either does not know about or
knows about but does not normally think of buying. Most new innovations are unsought until the
consumer becomes aware of them through advertising. By their very nature, unsought products
require a lot of advertising, personal selling and other marketing efforts. Life insurance, blood
donation, encyclopedia are examples of unsought product.
c) Test marketing is a method of finding out whether the consumers accept the new product or
whether the product is market-friendly and whether the product is viable for sales purpose in the
long run. There are three types of test marketing –
i. Standard Test Marketing - In this particular method, products are distributed to the
selected stores of selected areas, stores are audited periodically to identify the sales
situation and profit situation, consumer and distributor surveys are done, and product
problems are is discovered.
ii. Controlled Test marketing - In this method, some stores agree to carry new products for a
fee and the firm becomes very close to these stores. These stores provide report to the
firm regarding all the purchases made by the consumers and their behavior towards the
new products time-to-time.
iii. Simulated Test marketing – This method is also called as “laboratory test”. These days
this method is used as a “pilot test” or “pretest”. In this method, certain consumers are
sampled from the market place, the company or research firm shows advertisements and
promotions for a variety of products, including the firm‟s new product.
d) A need is a basic requirement that an individual wishes to satisfy. The most basic concept
underlying marketing is that of human needs. Human needs are state of felt deprivation. They
include basic physical needs for food, clothing, warmth, and safety; social needs for belonging
and affection; and needs for knowledge and self-expression. These needs were not invented by
marketers; they are a basic part of the human makeup.
e) Promotion is the one of the major elements of marketing mix which provides various valuable
consists of various activities that facilitate exchanges with target customers through persuasive
communication which stimulates the demand of the product.
Promotion includes various types of activities such as advertising, sales promotion, personal
selling, publicity and public relations to inform, persuade, remind and reinforce the target
market about the company‟s offerings. These activities influence the customer‟s feelings, belief
or behavior for buying.
MYH 1552
Suggested Answers - Business Communication CAP-II Examination - December 2014
Section -'A'
1. Read the following case carefully and answer the questions given below: (3.5+3.5+3=10)
Anand Roy, an officer at Research Division in Real Drinks Co. Ltd. is asked to prepare a report after conducting a nation-wide
survey about the sales condition of the products of the company. The Sales Manager has instructed Mr Roy to conduct the research
with a key intention of increasing the sales of ‘Real Drink’ in the coming summer. Other general aspects of the survey will be some
of those including the ways of increasing the demand of the product, improvements to be brought, desires of costumers, cost,
quantity, and marketing strategies, and so on. The survey should include at least ten thousand respondents across the country with
one thousand in each Development Region. Mr. Roy has to present some clear findings and recommendations in the report, and he
has now kept himself busy in developing research tools, sampling procedures, research design, analyzing measures, rating scales,
action plans, time table, etc.
Questions:
a) Choose a particular area of research, for example, marketing strategy, costumer desires, costumer perceptions, etc., and prepare
a set of questionnaire based on the chosen area in order to elicit information for the survey. The questionnaire should include at
least seven questions.
b) What could be three major objectives of the survey/report?
c) Prepare a timetable for writing the report that is required by the sales manager of the company.
Answer
a) Questionnaire on costumer perception on Real Drink(RD)
(To be asked to the costumers)
Questions Yes! Yes No No! Remarks
Do you love the flavor of Real Drink?
Do your friends love RD?
Do you prefer RD to other drinks?
Do you think quality of RD pays its cost?
Is chilled RD better than normal one?
Do you find RD in the parties too?
Can you imagine your lunch without RD?
b) The objectives of the study are:
i) To find out the ways of increasing the sales throughout the country,
ii) To find out the perception of consumers about the quality of the product,
iii) To find out the efficiency of marketing strategies of the company.
c) Time Schedule for the Survey

Actions/Activities Time allocated
Research tool design and planning 1 week
Survey procedure(sampling and data collection ) 4 weeks
Analysis and interpretation of data 2 weeks
Writing report 1 week
Submission after 8 weeks
2. As a manager of Express Welfare Organization, you are going to organize a blood donation program which is the part of company’s
annual activity. Since the people might become reluctant to participate in the program and donate the blood, you need to convince
them highlighting its importance and overcoming their possible objections. Now, write a persuasive letter to distribute the possible
donors in and outside the organization. Follow the techniques of writing persuasive message. 10
1677
Answer
Express Welfare Organization
Baneshwor, Kathmandu
November 23, 2014
Dear Mr.BinayaJha
We are pleased to let you know that we are going to organize a blood donation program. It’s one of the annual activities of our
company. Many people die each year due to the lack of blood in their treatment. In this regard, I would like to present a case in
which we contributed to saving life through blood donation. A few years ago, an employee of Express Welfare was driving to a
friend’s wedding when an oncoming car, operated by a drunk driver, swerved across the center line. Brad doesn’t remember the
crash. But he does remember two months spent in the hospital, two months of surgery and therapy.
Without the help of people like us, Saurav would not have lived. Some Express Welfare employees save lives regularly. We’re blood
donors. Please be a lifesaver and join us on Friday, March 19th, for Express Welfare’s annual blood drive.
Your help is needed for a successful drive.
Giving blood is simple. The entire process will take less than 45 minutes.
Giving blood is safe. Experienced health professionals from the Red Cross Society will be on-site to conduct the procedure exactly
as they would in a clinic setting.
Giving blood is convenient. The Red Cross staff will be in Room 401, Building B, between 9:00 A.M. and 3:00 P.M. To save time,
make an appointment to donate. Call the Red Cross Blood Center at 569-1170.
Giving blood is important. Nobody knows who will need blood next, but one thing is certain—it will be available only if healthy,
caring people take time to give it. Saurav’s accident required 110 units—more than 12 gallons—of blood. Because 110 people set
aside 45 minutes, Saurav Nepal has a lifetime of minutes to be grateful.
Take a few moments now to make your pledge on the reverse side of this letter. Then return it to the Community Relations
Department, Mail Location 12, by March 15th. For more information about the drive, call the Red Cross Society at 552-7116.
From Saurav and from other families—like yours and mine—who might need it in the days to come,
Sincerely,
HemantaShrestha
Manager
3. Why are meeting minutes important? What should be done while minuting? (4+6=10)
Answer:
It is important to capture the essence of the meeting, including details such as:
- decisions made (motions made, votes, etc.)
- next steps planned
- identification and tracking of action items
Minutes are a tangible record of the meeting for its participants and a source of information for members who were unable to attend.
In some cases, meeting minutes can act as a reference point, for example:
- when a meeting’s outcomes impact other collaborative activities or projects within the organization
- minutes can serve to notify (or remind) individuals of tasks assigned to them and/or timelines
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Tips for record taking

Generally, meeting minutes usually include the following:
- Date and time of the meeting
- Names of the meeting participants and those unable to attend (e.g., “regrets”)
- Acceptance or corrections/amendments to previous meeting minutes
- Decisions made about each agenda item, for example:
o Actions taken or agreed to be taken
o Next steps
o Voting outcomes
o Motions taken or rejected
o Items to be held over
o New business
o Next meeting date and time
Tips for minuting:

Create an outline – having an outline (or template) based on the agenda makes it easy for you to simply jot down notes, decisions,
etc. under each item as you go along. If you are taking notes by hand, consider including space below each item on your outline for
your hand-written notes, then print these out and use this to capture minutes.
Check-off attendees as they enter the room - if you know the meeting attendees, you can check them off as they arrive, if not have
folks introduce themselves at the start of the meeting or circulate an attendance list they can check-off themselves.
Record decisions or notes on action items in your outline as soon as they occur to be sure they are recorded accurately
Ask for clarification if necessary – e.g., if the group moves on without making a decision or an obvious conclusion, ask for
clarification of the decision and/or next steps involved.
Don’t try to capture it all – you can’t keep up if you try to write down the whole conversation, so be sure to simply and clearly
write or type just the decisions, assignments, action steps, etc.
Record it – literally, if you are concerned about being able to keep up with note taking, consider recording the meeting (e.g., on your
smart phone, iPad, recording device, etc.) but be sure to let participants know they are being recorded and it can come in handy if
you need clarification.
4. What would you include while writing a persuasive resume or CV? 10

Answer:
Writing a persuasive resume is well worth the effort. Regardless of the job market, it is important to have a persuasive and well
written curriculum vitae, or CV, also known as a resume. The focus of a CV is experience, skills and achievements. Employers hire
people who are qualified and demonstrate an understanding of their business.
The following points should be considered focusing on the important components to be included in a persuasive CV.
- Remove redundant information from your resume. Do not mention past job functions that do not highlight skills or point out
accomplishments relevant to the job you are applying to.
- Tailor the CV to the advertised position. Carefully review the advertisement and show how your skills and experiences fit the
job requirements.
- Use the same keywords and terminologies that appear in the job description. The resume should demonstrate that the applicant
understands the employer's business and industry. Some resumes are scanned by computers: having matching keywords may
stop your resume from getting filtered out before an actual person has had a chance to see it.
- Select a simple design for your CV. The length will depend on your education and work experience, but keep it brief. Hiring
managers may be reviewing dozens of resumes, so they will not have time to read through a CV that reads like an essay.
- Set yourself apart. Mention unique experiences or unusual skills that may not be related to the position. Mention that you speak
a foreign language and that you have traveled extensively. Talk about your community activities, such as coaching the school
football team or volunteering at the local food bank.
- Summarize your qualifications for the position advertised. Use a brief statement of your experience and skills as the headline for
your resume.
- Avoid applying for positions that require skills that you don't possess. Your resume will come across as unpersuasive. Even if
you get an interview, it may turn out to be a waste of valuable time.
- Keep in mind the main purpose of the resume. The resume is not intended to be a complete biography. Its main purpose is to get
you an interview. Remember that persuasion requires clarity and precision.
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a) Kinesics
b) Overcoming communication barriers
c) Interpersonal communication
d) Pros and cons of workforce diversity
e) Techniques to close the job interview
Answer:
a) Kinesics
Kinesics is one of the important types of nonverbal communication. When communication takes place with the help of the
movement of the body parts such as head, hands, face, etc., it is known as kinesics. The eyes, fingers, legs, body postures, etc.
also have very important role to convey very specific meaning in a very specific context. Kinesics can be more effective than
the linguistic tool such as words and utterances in some specific context of communication. For example we can communicate
by nodding our head, blinking eyes, waving hands, and so on. Such movements can express more effectively our strong
feelings, intentions, and affective conditions.
b) Overcoming communication barriers

Communication systems may face a number of challenges such as interruption, interference, lack of knowledge in the
participants, etc. These obstacles and challenges are called communication barriers. These are mainly of two types: physical and
mental. Physical barriers are related to noises and physical disturbances. Mental barriers are related to the lack of linguistic as
well as cultural knowledge, emotions, etc. communication barriers need to be overcome because they may result in
organizational failure. In order to overcome such communication barriers the following strategies may be useful.
• Using familiar words and terms: Start with the familiar words to introduce a new idea. As inception of a new idea causes
resistance, the safest way to discuss and accept any new information is to begin with what is known. Start from what it is to
what it could be.
• Understanding traits of cross-cultural communication traits
• Understanding perceptions and conceptions of others
• Using listener-oriented viewpoints
• Avoidance of ambiguous words, jargons, slang and semantic words
c) Interpersonal communication
Interpersonal communication is the sending and receiving of messages between two or more people. Everyone communicates in
life and business, however, various barriers can exist that distort the message. Individuals must be able to identify the barriers
and find ways to eliminate them in a way that improves the communication flow. Learning a few techniques or using proper
preparation can help individuals tailor their communication in a way that provides focus and improves the message.
Effective interpersonal communication is an ongoing process. As new messages come up or audiences change, senders must
tailor their messages to ensure effective communication. Failing to observe the barriers in communication can result in more
time clarifying the message than creating it. Senders will often spend more time correcting the message, which can result in
more time spent on a basic message.
d) Pros and cons of workforce diversity

Having a diverse workforce can benefit consumers, work teams, and business organizations. However, diversity can also cause
divisiveness among identity groups. Business communicators should be aware of and sensitive to differences in the
communication techniques of men and women. To promote harmony and communication in diverse workplaces, many
organizations develop diversity training programs. You must understand and accept the value of differences. Don’t expect
conformity, and create zero tolerance for bias and prejudice. Learn about your cultural self, make fewer assumptions, and seek
common ground when disagreements arise.
e) Techniques to close the job interview

Once the interview nears conclusion, start thinking about how to end on a positive note. It is easy to become flustered after a
challenging interview, so as an interviewee one need to be sure to practice questions that you plan to ask. Also, focus on how to
leave a lasting positive impression.
• Asking your own questions: Be prepared with meaningful, thoughtful questions to help you determine whether this job is
right for you.
• Ending the interview positively: Summarize your strongest qualifications, show your enthusiasm for the job, and thank the
interviewer. Ask for the interviewer’s business card. Shake hands, and acknowledge anyone else on the way out.
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Suggested Answers - Marketing CAP-II Examination - December 2014
Marketing
Section -'B'
According to a report published in one of the popular daily newspapers of Nepal on September 13, 2011, Government lab test
confirmed contamination in Gudpak, a popular sweet produced by Corner TajaGudpakBhandar and Shree Krishna Gudpak at New
Road along with Kanhaiya Brand Ghee.
The Department of Commerce had sent samples of the Gudpak and Kanhaiya Ghee to the Department of Food Technology and
Quality for tests. The report found thatKanhaiya Ghee was substandard and contained 16 percent fat against the needed 28 percent. It
was not safe to consume. It posed a risk to people’s health,The food technology department sent the report to the Kathmandu District
Administration Office (DAO).
The DAO assured strict action as per the Black Marketing and Some Other Social Offences Punishment Act against those found
guilty of producing low quality food.As per the Consumer protection Act, the government can send the offenders to 14 years in jail
and fine them up to Rs. 500,000.
Meanwhile, a monitoring team from the Kathmandu DAO and the food technology department inspected Pushpa Dairy. The
inspection team found the dairy using a broken filter system.Contaminated water was being mixed in the milk. The inspection team
destroyed some 1,000 litres of contaminated milk and ordered the firm to change the filter system, label the products properly and
not to use powdered milk until they come up with a lab report.
Questions:
a) Which marketing concept was applied by the firm and why? 5

b) What should be the responsibility of business community in society in the context of the above case? 5
Answer According to the situation given in the case, the marketing firms should adopt the societal marketing concept because the
conduct of marketing firms affect the whole society and its welfare.
The punishment decision taken by the government was appropriate, but it should create awareness among the business
community regarding their role in social welfare and well-being.It should not be a window dressing; it should be a continuous
process.
Since the final users of any product are consumers, they must be aware of the consequences of the use of product. Therefore,
before making buying decision, they must have adequate information about the products and their impacts.
The business community must understand the business ethics and should be responsive to the society. Only those communities
can sustain their business in this competitive world which are aware of social obligation and work for social welfare and well-
being.
2.
a) What do you know about selling concept of marketing? Explain its features. 5
b) What is marketing environment? Identify the components and features of macro environment. (2+3=5)
Answer a)
Selling concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the products without selling and
promotion effort. Therefore organizations must undertake aggressive selling and promotion efforts. The selling concept is practiced most
aggressively with unsought products, products that buyers normally do not think buying, such as insurance policy and encyclopedias.
Most firms practice the selling concept when they have overcapacity. Their aim is to sell what they make rather than make what the
market wants. Such marketing carries high risks. It focuses on creating sales transactions rather than on building profitable relationships
with customers. It assumes that consumers who are coaxed into buying the product will like it. These are usually poor assumptions to
make about buyers. Most studies show that dissatisfied customers do not buy it again. Whereas the satisfied customer tells three others
about good experiences, the average dissatisfied customer tells ten others about bad experiences.
The features of selling concept are

1. It satisfies seller's needs.
2. It aims to sell what it made.
3. Aggressive selling and promotion
4. Profit through high sales volume.
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b) Marketing environment encompasses all those surroundings or forces which are constantly changing and carry with them both
opportunities and threats. Macro environmental forces include the following components –
i. Economic Environment
ii. Demographic Environment
iii. Socio-Cultural Environment
iv. Technological Environment
v. Political and Legal Environment
vi. Natural Environment
vii. Competitive Environment
These forces have distinct features, which are as follow:
• These forces are external in nature and cannot be controlled or manipulated by the marketer when required;
• Forces in marketing environment are dynamic in nature and go on changing over time, such as habit of people, their needs
and wants, technology, demographic character of the people, politics, rules and regulations, competition, etc.
• These forces create opportunities as well as threats to the management.Without their consideration smooth functioning of
management is not possible.
• Marketing environmental forces are potentially relevant to the marketing decision-making.without the consideration of
marketing environment marketing program can neither be formulated nor implemented successfully.
• Marketing environment is the source of not only threats to the management but also the source of opportunities. A
marketer identifies business opportunities from among the marketing environmental forces.
3.
a) Give the meaning of marketing research and also point out the marketing research process. (2+3=5)
b) Describe the meaning and importance of market segmentation. (2+3=5)
Answer a)
Marketing managers often commission formal marketing studies of specific problems and opportunities, such as a market survey, a
product-preference test, a sales forecast by region or an advertising evaluation. We define marketing research as the systematic design,
collection, analysis and reporting of data and findings that are relevant to a specific marketing situation facing the company.
A company can obtain marketing research in a number of ways. Most large companies have their own marketing research departments.
Some small companies can hire the services of a marketing research firm or conduct research in creative and affordable ways. They can
engage students or professors to design and carry out projects, they can use the Internet, and they can visit competitors.
Companies normally budget marketing research at 1 to 2 percent of company sales. Much of this budget is spent with outside research
firms, which fall into three categories. Syndicated-service research firms gather consumer and trade information, which they sell for a fee.
Custom marketing research firms design studies, carry them out, and report the findings. Specialty-line marketing research firms provide
specialized services such as field interview.
Effective marketing research process can be mentioned as follows:
1. Define the problem and research objectives
2. Develop the research plan
3. Collect the information
4. Analyze the information
5. Present the findings
b) Market segmentation is a process of dividing the total market into several smaller, internally homogeneous groups. It is based on
customer oriented philosophy. No marketer can satisfy the needs of all customers by developing single marketing mix. The essence
of segmentation is that the members of each group are similar with respect to the factors that influence demand. In segmentation, we
first identify the wants of customers within a submarket and then decide if it is practical to develop a marketing mix to satisfy those
wants.
According to Philip Kotler, “Market segmentation is the subdividing of a market into homogeneous subsets of customers, where any
subset may conceivable be selected as a market target to be reached with a distinct marketing mix.”
There are several important reasons why businesses should attempt to segment their markets carefully. They are summarized below:
i. Better matching of customer needs: Customer needs differ. Creating separate offers for each segment makes sense and
provides customers with a better solution.
ii. Enhanced profits for business: Customers have different disposable income. They are, therefore, different in how sensitive
they are to price. By segmenting markets, businesses can raise average prices and subsequently enhance profit.
iii. Better opportunities for growth: Market segmentation can build sales. For example, customers can be encouraged to "trade-
up" after being introduced to a particular product with an introductory, lower-priced product.
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iv. Retain more customers: Customer circumstances change, for example they grow older, form families, change jobs or get
promoted, change their buying patterns. By marketing products that appeal to customers at different stages of their life ("life-
cycle"), a business can retain customers who might otherwise switch to competing products and brands.
v. Target marketing communicationbusinesses need to deliver their marketing message to a relevant customer audience. If the
target market is too broad, there is a strong risk that the key customers are missed and the cost of communicating to customers
becomes too high. By segmenting markets, the target customer can be reached more often and at lower cost.
vi. Gain share of the market segment: Minor brands suffer from lack of scale economies in production and marketing,
pressures from distributors and limited space on the shelves. Through careful segmentation and targeting, businesses can often
achieve competitive production and marketing costs and become the preferred choice of customers and distributors. In other
words, segmentation offers the opportunity for smaller firms to compete with bigger ones.
4.
a) What is service product? Explain its distinct features. (2+3=5)
b) What is pricing? Explain the importance of pricing to economy. (2+3=5)
Answer a)
A service product may be defined as any task performed by the company as 'provision' of facility or product. Services may or may not
be attached with the physical product. If the main goal of the company is to provide services rather than a physical good, then services
become the main 'product' to the company. For example, repair and maintenance, medical and health care, banking, insurance,
research and consultancy, transportation, communication etc.
Characteristics of Services
Service product has distinct features as follows:
• Services are intangible (Intangibility): Services are abstract in nature, so they cannot see, feel, taste, hear, or smell. Before
they are purchased, customer cannot handle, examine or tried out.
• Services are perishable and cannot be stored (Perishability): Services disappear quickly; they are perishable in nature and
have no stored value. For example, if a dentist's customer fails to make an appointment, a half-hour or a certain time of the
dentist is gone forever.
• Services vary widely in quality (Variability in quality): Services are heterogeneous in nature. It is impossible for a service
industry, or even and individual seller of services, to standardize service output, this is because the skills of several providers of
services may vary widely, and even a single service provider may provide different quality services to the customers. For
example, an airline does not provide the same quality of service on each trip.
• Services are not separable from their provider (Non-seperability): Services are inseparable from the supplier or service
provider. In services marketing, the service delivery agents or service sellers become the surrogates or symbol of the quality of
service. For example, if the customers are crazy of services from a particular dentist because of his quality services. But in the
mean time, instead of inspection by himself, a substitute dentist is supplied, the customers will be dissatisfied as such customers
may divert to another dentist they feel superior or better. Hence, services are nontransferable, i.e., they cannot be transferred to
another party through the channels of distribution like tangible goods.
• Most of the services are purchased and consumed at production site. For example, to get dental services, customers have to
visit to the dentist's clinic: for the maintenance of bicycles, the bicyclist has to visit to the repair and maintenance workshop, etc.
• Non-measurability: Like physical items, services do not have physical features like shape, weight, colour, design, length,
breadth, etc. Therefore, service items cannot be measured like physical items.
b) Price is the exchange value of the product or service expressed in terms of money. It is the amount of money needed to buy the
product. In another words, price is the amount of money that customers pay for the product or service. It is what customers pay for
what they get.
Pricing refers to an act of determining the exchange value between what buyers get and what the sellers receives. It is a process of
setting prices for various products and services. In short, pricing is the act of determining exchange value of a product or service.
Pricing involves formulating pricing objectives, policies and strategies, setting base price, determining discount and commission etc.
Pricing is the most visible but secretly performed activity in a business organization.
We can explain the importance of pricing to economy as follows:
1. Price influences factors of production
Rent, wages, interest and profit are paid as price for land, labor, capital and entrepreneurship. Changes in rent, wages, interest
and profit influences the demand and supply of the factors of production.
2. Price determines demand and supply
From the economic point of view, high prices increase supply and low prices increase demand. The level of demand and
supply are determined by price. The price of the products determines the numbers of buyers whose purchasing power allows
them to buy it.
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3. Price affects saving and investment

High prices discourage saving and investment. Government controls prices to encourage saving and investment. They provide
subsidies to stabilize and lower prices. Inflation also affects price.
4. Price is a tool for economic management
Government use price in the form of taxes to manage the economy. They administer prices for public utilities like electricity,
water, telephone, postal services. They regulate prices of public enterprises.

a) Benefits of niche marketing
b) Importance of warehouse in distribution system
c) Specialty product
d) Promotion
e) Reference groups
Answer a)
A niche is more narrowly defined group seeking a distinctive mix of benefits. Marketers usually identify niches by dividing a segment
into sub-segments. For example, the segment of heavy smokers includes two niches: those who are trying to stop smoking and those who
don’t care.
In an attractive niche, customers have a distinct set of needs; they will pay a premium price to the firm that best satisfies their needs: Its
benefits are that niche is not likely to attract other competitors. The nicher gains certain economies through specialization. The niche has
size, profit and growth potential.
b) Warehouse may be a place (open or closed) where goods are stored for certain period for the distribution of goods to the target
market whenever and wherever required. While warehousing is a specialized system and process of storing surplus goods (keeping
buffer stock) for use or consumption in future because goods may not have demand immediately after the goods are manufactured.
There are three types of warehouse –Private warehouse, Public warehouse and Bonded warehouse
Warehouses play an important role in the following ways –
Importance of Warehousing
Warehouses play an important role in the following ways –
i. Lengthens the life of products and maintains the product quality.
ii. Reduces the level of product damage and losses.
iii. They keep buffer stock of goods and facilitate supplying whenever demand creates in the market.
iv. Provides the facilities of marketing activities like; bulk-breaking, packaging, labeling, selling goods in small lots, etc.
v. Makes available the seasonal products in off-seasons also.
vi. Helps meeting required demand of the customers living in diverse geographical areas.
c) Specialty products are consumer products and services with unique characteristics or brand identification for which a significant
group of buyers is willing to make a special purchase effort. Buyers normally do not compare specialty products. They only invest
the time needed to reach dealers carrying the wanted products. Customers are usually willing to travel great distance to buy
specialty product. Dealers do not need convenient locations, although they must let prospective buyers know their locations. Bata
shoes, Mercedes car are examples of specialty product.
d) Promotion is one of the major elements of marketing mix which provides valuable information to consumers about product, price,
availability, utilities and benefits. Promotion consists of various activities that facilitate exchanges with target customers through
persuasive communication which stimulates the demand of the product.
According to Philip Kotler, “Promotion includes all the activities the company undertakes to communicate and promote its products
to the target market.”
Promotion includes various types of activities such as advertising, sales promotion, personal selling, publicity and public relation to
inform, persuade, remind and reinforce the target market about the company’s offerings. These activities influence the customer’s
feelings, belief or behavior for buying.
e) Reference groups have a direct/ face to face or indirect influence on a person’s attitudes or behavior. Groups having a direct
influence on a person are called membership groups. Some primary groups are family, friends, neighbors, and co-workers, with
whom individuals interact fairly continuously and informally. Secondary groups, such as professional and trade union groups tend
to be more formal and require less continuous interaction. Reference groups expose people to new behaviors and lifestyles,
influence attitudes and self-concept and create pressures for conformity that affect product and brand choices.
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CAP-II, Business Communication, Jun-14

Suggested Answer
Marks
Section -'A'
1. Read the following case and analyze it on the basis of the following questions. (3+3.5+3.5=10)
Ishan recently began working at a new job. Although he‘s been in his new job only
five weeks, he likes it a lot, and he‘s told you that he sees a future for himself with
this company. But last week, a problem arose. Along with all other employees, Ishan
was invited to the annual company banquet, at which everyone socializes and awards
are given for outstanding performance. Ishan‘s daughter was in a play the night of
the banquet, so Ishan chose to attend his daughter‘s play rather than the company
event. The invitation to the banquet had stated only, ―Hope to see you there‖ and had
not been RSVP, so Ishan didn‘t mention to anyone that he couldn‘t attend. When he
arrived at work the next Monday morning, however, he discovered the case was
otherwise and had the exchange that follows with his manager. Later, when Ishan
talked with several co-workers who had been around a few years, he discovered that
top management sees the annual banquet as a ―command performance‖ that signifies
company unity and loyalty.
Ishan‘s manager: You skipped the banquet last Saturday. I had really thought you
were committed to our company.
Ishan: My daughter was in a play that night.
Ishan‘s manager: I don‘t care why you didn‘t come. We notice who is really with us
and who isn‘t.
Questions:
a) Explain the misunderstanding that appeared between Ishan and his manager.
b) How might Ishan use the informal network in his organization to learn the
normative practices of the company and the meanings they have to others in the
company?
c) How would you suggest that Ishan repair the damage done by his absence from
the company banquet? What might he say to his manager?
Answer:
a) Since Ishan was new in the company, he couldn‘t understand the invitation as the
compulsory call for attending the banquet. Therefore, he decided to attend his
daughter‘s play which was equally important for him. But for his manager, not
attending the banquet would mean that Ishan was not committed and he was not in
support of the company. This misunderstanding appeared because being a new
employee Ishan did not understand the normative practices of the company. Neither
the manager provided him the clear message, nor did he try to understand the culture
of the company.
b) Ishan would talk to his coworkers informally at tea breaks or at any off hours about
the invitation and what it would mean. He just read the message and understood
what it would generally mean. In that sense, he is not a cautious person. He also
would share his difficulty of attending the banquet to any of his coworkers, or would
ask what he or she could do in such a situation.
c) He can repair the damage by clearly explaining what difficulty he had in attending
the banquet in that evening. He also can talk about the lack of clarity of the message,
and explain that being a new employee he could not understand the normative
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practice of the company. Neither any of the coworkers talked to him regarding the
company‘s practices nor the company itself thought to orient him in its practices.
2. Some say that there is no difference between ethics and morals. What are your
views? Explain the importance of ethical behavior at the workplace. (5+5=10)
Answer:
a) There is a fine distinction between ethics and morals which may be enumerated as
follows:
The word ‗Moral‘ is defined as relating to principles of right and wrong. The root word for moral
is Latin word ‗mos‘ meaning custom while the root word for ethics is the Greek word ‗ethos‘
meaning character. Custom and character however provide two different standards for defining
what is wrong and what is right. Character is a personal attribute while custom is defined by a group
overtime and people have character while societies have custom.
Morals are accepted from an authority i.e. culture, religion etc. while ethics are accepted because
they follow from personally accepted principles.
Morals work on a smaller scale than ethics, more reliably but by addressing human needs for
belonging and emulation, while ethics has much wider scope.
An organisation, whether a business or government agency, is first and foremost a human society. If
an employer does not take steps to create a work environment where the employees have a clear,
common understanding of what is right and wrong and feel free to discuss and ask questions about
ethical issues and report violations, significant problems could arise, including:
- increased risk of employees making unethical decisions;
- increased tendency of employees to report violations to out side regulatory authorities (whistle
blowing) because they lack an adequate internal forum;
- inability to recruit and retain top executives;
- diminished reputation in the industry and the community; and
- significant legal exposure and loss of competitive advantage in the market place.
3. How and what will you include while writing for an international audience? 10
Answer:
The following tips below could be used as a guideline while writing for people who have a low level of
English.
Start and finish with courtesy: In many cultures, building a good relationship is more important than any
other part of business communication. So be polite and courteous, especially in openings and closings.
Use short, one-idea sentences: You’re less likely to create a grammatically confusing sentence if it’s short
and has only one idea in it.
Beware of using metaphors: People who speak little English often take metaphors literally and get
confused. Avoid writing ‘The market in your area has a lot of low-hanging fruit’ or ‘We’ve been doing some
blue-sky thinking’.
Prefer one precise word over a few short ones: Prefer one precise word, such as ‘meet’, over two short
words, such as ‘run into’. Those combinations of small words are difficult for international readers to
understand, especially if they take each of the two words literally. ‘The problem should blow over in a
week’ might confuse someone (‘Is it windy?’); whereas ‘The problem should pass in a week’ will work
better.
Avoid double negatives: In some languages, a double negative is a very strong ‘no’. If you write ‘The visit
was not unproductive’, your reader might think the visit was a disaster.
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Avoid humor: What our culture finds funny could easily be offensive in another culture. Also, remember
that puns usually mean nothing to someone who is unfamiliar with English.
Use one word to name one thing: Pick one word to name something, and stick with it. For example, if you
say ‘report’, don’t add in ‘paper’, ‘research’, or ‘document’ for elegant variation. You’ll only confuse your
reader.
Write ‘Joanne’ rather than ‘she’ or ‘her’: Use names more than pronouns. Write ‘Please give the report to
Sven’, not ‘Please give it to him’. An international reader could have trouble working out what ‘it’ refers to
and who ‘him’ is.
Write dates in full: Write dates in full to avoid confusion, for example, write 6
February 2011, not 06/02/11 or 02/06/11.
4. How are data analyzed and organized while producing a business report? 10
Answer:
Data are the systematic information collected by the researcher in order to reach a conclusion of the
study. According to the objectives of the study, the tools for collecting data are designed, and the
data are analyzed so as to draw out the appropriate findings. Then a report is written about the
study. Data are analyzed in a number of different ways.
The quantitative data are analyzed by using varieties of statistical tools such as mean, median,
range, standard deviation, co relational coefficient, and so on. Different para-orthographic tools
such as tables, pie charts, bar diagrams, etc. are also used for the analysis and organization of report
data. In the case of qualitative research report, data are more commonly analyzed by description and
interpretation. Examples, ideas, and information are presented in the paragraphs and points. Such
supporting description can also be used in the analysis of quantitative data after the tables, charts, or
figures. Comparison is commonly used in the analysis of quantitative data of a report.
Apart from the technical aspects, there are some attitudinal aspects that a report writer needs to be
aware of. For example, personally biased points should not be incorporated in the analysis of
research data. The interpretation that is made needs to be tested properly, and verified. However,
while analyzing the data, the researcher can put logically critical views on the data which are
collected for a report.
a) Workplace diversity and its challenges
b) Conflict Resolution
c) Encoding and decoding in communication
d) Active Listening Techniques
e) Writing a Successful Proposal
Answer:
a) The reality of the present day work-situation entails that the changing dynamic world has permitted
people with diverse culture, identity and ideology to work together for a grand common goal of
business, trade and industry. Such diversity in the workplace is commonly termed as ‗workplace
diversity‘ in the field of international business communication. The term is also defined in the
reference of the characteristics of cross-cultural communication. Cross cultural campaigns are
conducted in every sector such as business, education, communication, media, and so on. The
increasing diversity of the workplace has posed a challenge to the managers and executive heads.
Messages may be interpreted differently by workers of different gender, racial and cultural
background. Employees may not able to adjust themselves into the diverse cultural situation, and
can be misunderstood. Because of lack of cooperation and support, conflicts between the workers
may also arise. The diverse workplace may lack proper exposure to international communication.
Different companions and programs such as seminars, workshops etc. should be organized to
minimize the challenges of diverse workplace.
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b) Conflict arises from differences. It occurs whenever people disagree over their values, motivations,
perceptions, ideas, or desires. Sometimes these differences look trivial, but when a conflict triggers
strong feelings, a deep personal need is at the core of the problem, such as a need to feel safe and
secure, a need to feel respected and valued, or a need for greater closeness and intimacy.
The ability to successfully resolve conflict depends on your ability to:

- Manage stress quickly while remaining alert and calm.
- By staying calm, you can accurately read and interpret verbal and nonverbal
communication.
- Control your emotions and behavior. When you‘re in control of your emotions, you can
communicate your needs without threatening, frightening, or punishing others.
- Pay attention to the feelings being expressed as well as the spoken words of others.
Be aware of and respectful of differences. By avoiding disrespectful words and actions, you can
resolve the problem faster.
c) Business communication involves a number of linguistic and no linguistic elements such as words,
phrases, discourse markers, graphic tools, paralanguage features, instruments and so on which are
used by the participants to give a specific meaning. Nonverbal devices such as gestures and
postures also play remarkably important role in business communication. It is human mind that is
essentially important in making the meaning of what we have used as linguistic or nonlinguistic
device for communication. The mind gives or determines particular meaning of the linguistic or
non-linguistic devices. The sender‘s mind is responsible for encoding the meaning of language
used. With the help of linguistic, socio- cultural, and experiential knowledge, a speaker encodes the
meaning of his or her speech, and intends that the receiver will also decode the meaning in the same
way. To be more specific, encoding is a sender‘s mental process of presenting ideas or information
in oral or written form, using sounds, letters, words, figures or symbols. Decoding is the receiver‘s
mental process or act of assigning the meaning to the words and symbols used by the speakers or
writers. While encoding is concerned with production, decoding is concerned with perception of
discourse meaning in context.
d) Experts say that we listen at only 25 percent efficiency. To make listening more efficient and
effective, some Active Listening Techniques are suggested. While listening to superiors on the job,
take selective notes, avoid interrupting, ask pertinent questions, and paraphrase what you hear.
When listening to colleagues and teammates listen critically to recognize facts and listen
discriminately to identify main ideas and to understand logical arguments. When listening to
customers, defer judgment, pay attention to content rather than form, listen completely, control
emotions, give affirming statements, and invite additional comments. Keys to building powerful
listening skills include controlling external and internal distractions, becoming actively involved,
separating facts from opinions, identifying important facts, refraining from interrupting, asking
clarifying questions, paraphrasing, taking advantage of lag time, taking notes to ensure retention,
and being aware of gender differences.
e) The following guidelines will help you write successful proposals of any type:
 Approach your proposal as a problem-solving activity. Make readers feel that your goal is to
solve a problem for them and that you have the ability to do so.
 Regard your audience as skeptical. Don‘t think readers will automatically accept your
plan as the best way to solve their problem. Expect them to question everything you say.
 Research your proposal thoroughly. You need facts, not generalizations, to persuade your
readers.
 Scout out your competitors. Check your competitors Web sites for information on their
products or services and to get an idea of their costs.
 Prove that your proposal is workable. The bottom-line question from your readers will be
whether your plan will work.
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 Be sure your proposal is financially realistic. Another basic question readers will ask is if
your plan is worth the money. Do not submit a proposal that requires excessive funds to
implement.
 Package your proposal attractively. Readers will see your proposal as evidence of the
kind of work you do, so make it look good.
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CAP-II, Marketing, Jun-14

Suggested Answer
Marks
Section -'B'
When BMW Car first made a strong competitive push into the U.S. market in the
early 1980s, it positioned the brand as being the only automobile that offered both
luxury and performance. At that time, American luxury cars were seen by many as
lacking performance, and American performance cars were seen as lacking luxury.
By relying on the design of its cars and a well-designed marketing program, BMW
was able to simultaneously achieve (1) a point of difference on performance and a
point of parity on luxury with respect to luxury cars and (2) a point of difference on
luxury and a point of parity on performance with respect to performance cars. The
clever slogan, "The Ultimate Driving Machine", effectively captured the newly
created category-luxury performance cars.
Questions:
a) What were the points-of parity and points-of-difference strategies of BMW for
American market? 5
b) What does the slogan "The Ultimate Driving Machine" mean? 5
Answer:
a)
The points-of-parity strategies of BMW car with American cars include:
 A point of parity on luxury cars and,
 A point of parity on performance with respect to performance cars.
The points-of-difference of BMW car with American cars include:
 A point of difference on performance which the American luxury cars do not
provide, and
 A point of difference on luxury which American performance cars do not
provide.
b) The ultimate driving machine indicates that the BMW car is the best for American
customers and there is no alternative to this car, because, this car provides both luxury as
well as better performance, which the American cars do not provide. The American cars
have only one quality either performance or luxury, they do not provide both of these
qualities.
7.
a) Define marketing. Also explain the societal concept of marketing. (2+3=5)
b) Explain the technological environment of marketing. 5
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Answer:
a) In general, marketing activities are associated with identifying the particular wants and
needs of target of customers, and then going about satisfying those customers better than
the competitors. This involves doing marketing research on customers, analyzing their
needs and then making strategic decisions about product design, pricing, promotion, and
distribution. Thus, marketing deals with identifying and meeting human and social needs.
According to Stanton, Etzel & Walker, ―Marketing is a total system of business activities
designed to plan, price promote and distribute want satisfying products to target markets in
order to achieve organizational objectives.‖
From the above definition we can say that customers‘ wants must be recognized and
satisfied. Entire system of business activities should be customer oriented. Marketing
should start with want-satisfying product and should not end until the customers‘ wants
are completely satisfied, which may be some time after the exchange is made.
The societal marketing concept holds that the organization should determine the needs,
wants, and interests of target customers. It should then deliver superior value to costumer
in a way that maintains or improves the customer‘s and the society‘s well-being. The
societal marketing concept questions whether the pure marketing concept is adequate in an
age of environmental problems, resource shortages, rapid population growth, worldwide
economic problems, and neglected social services. It asks if the firm that senses, serves,
and satisfies wants is always doing what‘s best for consumers and society in the long run.
According to the societal marketing concept, the pure marketing concept overlooks
possible conflicts between consumer‘s short term wants and society‘s long term welfare.
Societal marketing concept calls on marketer to balance consumer, organization and
society.
b) Technological environment includes forces that create new technologies, creating new
products and new market opportunities. The technological environment is perhaps the
most dramatic force now shaping our destiny. Technology has released such wonders as
antibiotics, organ transplants, notebook computers and the Internet. It also has released
such horrors as nuclear missiles, chemical weapons and assault rifles. It has also released
such mixed blessings as automobile, television and credit cards. Our attitude toward
technology depends on whether we are more impressed with its wonders or its blunders.
The technological environment changes rapidly. Think of today‘s common products that
were not available 100 years or even 30 years ago, such as Abraham automobiles,
airplanes, radio, electric light, television, automatic dishwashers, air conditioners,
antibiotics, computers, xerography, synthetic detergents, tape recorders, birth control pills,
earth satellites, personal computers and the World Wide Web.
New technologies create new markets and opportunities. However, every new technology
replaces older technology. Cell phone hurt the pager industry, xerography hurt the carbon-
paper business and the compact disks hurt phonograph records. When old industries
fought or ignored new technologies, their business declined. Thus, marketers should watch
the technological environment closely. Companies that do not keep up with technological
change soon will find their products outdated.
Scientists today are researching a wide range of promising new products and
services, ranging from practical solar energy, electric cars, and cancer cures to voice-
controlled computers and genetically engineered food crops. Many companies are adding
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marketing people to R&D teams to try to obtain a stronger marketing orientation. The
challenge in each case is not only technical but also commercial.
In developed countries, government agencies investigate and ban potentially
unsafe products. These agencies set safety standards for consumer products and penalizes
companies that fail to meet them. Marketers should be aware of these regulations when
applying new technologies for developing new products.
8.
a) What is marketing segmentation? Explain the basic requirements of meaningful
market segmentation. (2+3=5)
b) What is branding? Show your acquaintance with the terms brand name, brand
mark and trade mark. (2+3=5)
Answer:
a) Market segmentation, is the process of dividing large, heterogeneous markets onto
smaller, homogeneous sub-markets. In other words, market segmentation is the process by
which an organization attempts to match a total marketing program to the needs of one or
more customer groups in the marketplace.
The main objectives of market segmentation are:
 To match the product with the market needs
 To minimize the effects of market competition.
 To assure the sale of product and survive in the market place
 To maximize gains from business
 To assure regular satisfaction of customers.
To achieve these objectives, segmentation must be effective and meaningful. In order to
make market segmentation effective and meaningful, the following conditions must be
fulfilled:
i. There should be differences in customer responses. If the entire customer group
respond in similar way, no segmentation is needed.
ii. Customer differences should be measurable or identifiable so that the marketer can
formulate a suitable marketing program that can address the real needs and
requirements of the target customer.
iii. Segments should be accessible or reachable so that the target customers can benefit
from segmentation effort.
iv. Segments should be Large Enough to create adequate demand for the firm's products.
b) A brand is a name, term, sign, symbol, or design or combination of these, that identifies the
maker or seller of a product or service. It is a name and/or mark intended to identify the
product of one seller and to differentiate the product from competing products. Consumers
view brand as an important part of a product, and branding can add value to a product.
According to Philip Kotler, “Brand is a name, term, sign, symbol or design, or a
combination of these, that is intended to identify the goods and services of one business or
group of businesses and to differentiate them from those of competitors”.
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Brand Name
A brand name consists of words, letters, and/or numbers that can be vocalized. For
example, Liril, Lux and Lifebouy are brand name of bathing soaps.
Brand Mark
A brand mark is the part of the brand that appears in the form of a symbol, design, or
distinctive color or lettering. A brand mark is recognized by sight but can not be expressed
when a person pronounces the brand name. Tree used in Dabur products, G>>> used in
Gorakhkali tyre. Are examples of brand marks.
Trade Mark
A trademark is a brand that has been adopted by a seller with legal protection. A trademark
includes not just brand mark but also the brand name. A brand name or brand mark can be
converted into a trademark only when they are legally registered with the concerned
government office.
9.
a) What is physical distribution management? Explain the importance of materials
handling in physical distribution management. (2+3=5)
b) Selling is the tip of marketing iceberg.‖ Comment. 5
Answer:
a) Physical distribution management is concerned with the management of physical flow of
goods from the point of suppliers to the points of purchasers. Stanton defines physical
distribution as 'the activities concerned with the movement of the right amount of the right
products to the right place at the right time'
The main objective of physical distribution is getting the right products safely to the right
place at the right time at the least possible cost.
A physical distribution system consists of a set of interrelated functions which are mentioned
below:
i. Transportation
ii. Warehousing
iii. Inventory Management and Control
iv. Order Processing and
v. Materials handling.
Importance of Materials Handling
Materials handling, also called the physical handling of goods, is an activity that consists
inventory management warehousing, and transportation. The characteristics of a product
determine to a large extent how it will be handled.
A variety of equipment are used to handle wide range of product of various sizes, shapes,
volumes, and weights. The most popular material handling equipments includes trucks,
conveyors, and cranes. Its importance is clear from the following:
i. Proper handling of goods minimizes losses from breakage and spoilage of goods.
ii. It can minimize the cost of distribution.
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iii. Goods can be supplied in marketplace as and when needed.

iv. It can minimize the exploitation of natural resources or primary materials through
which goods are manufactured, and thus save ecology of the nation.
b) Many people think of marketing only as selling of goods to end users. And no wonder –
everyday we are bombarded with television commercials, newspaper ads, sales calls,
direct mails etc. Although they are important, they are only a few marketing functions.
Today, marketing must be understood not in the old sense of making a sale by ―telling
and selling‖ but in the new sense of satisfying customer needs and managing profitable
customer relationship. It the marketer does a good job of understanding consumer needs,
develops products that provide superior value, distributes and promotes them effectively,
these products will sell very easily. Selling is only a part of marketing mix and thus we can
say that it is a tip of marketing iceberg. It is believed that, as per the new concept of
marketing, we can lose sales but we cannot lose customers.
Thus, marketing is not only selling, it is a social and managerial process by which
individuals and groups obtain what they need and want through creating and exchanging
products and value with others.
a) Core Product
b) Perceived-value pricing
c) Internal marketing
d) E-commerce
e) Promotion scenario in Nepal
Answer:
a) Core Product is the service or benefit the customer is really buying. The core product
stands at the centre of the total product. It consists of the core, problem solving benefits
that customer seeks when they buy a product or service. The most basic level is core
product, which addresses the question What is the buyer really buying? A hotel guest is
buying rest and sleep. A girl buying cosmetics is buying beauty. Marketer must see
themselves as benefit providers.
b) Perceived-value pricing is a method of setting price for the product at that level at which
the majority of customers become ready to pay. Under this method of pricing, companies
see the buyer's perception of value as the key to pricing. They attempt to measure the
relative perceived value of their offer and utilize this in setting the price.
In this case, the customer decides „how much he should pay for the product to get that
product in relation to the benefit provided by the product‟'
The process of setting perceived-value price involves the following steps:
i. Identify product features, performance, and company's services,
ii. Decide on the alternative price levels for choice along with the product features,
iii. Conduct market survey to indentify the customers' response on each product
feature, performance, and company's service,
iv. Rank their emphasis on the basis of the value they placed,
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v. Identify the price they wish to pay for the company's product or service. This price
is called as perceived-value price.
The key to perceived-value pricing is to make an accurate determination of the
customers' perception of the value of the product.
c) Internal marketing is the task of hiring, training, and motivating able employees who want
to serve customers well. Smart marketers recognize that marketing activities within the
company can be as important as marketing activities directed outside the company. It
makes no sense to promise excellent service before the company‘s staff is ready to provide
it.
Internal marketing must take place on two levels. At one level, the various marketing
functions – sales force, advertising, customer service, product management, marketing
research – must work together. At another level, marketing must be embraced by the other
departments, who must also ―think customer.‖
d) E-commerce is establishing exchange relationships electronically through email, internet

and electronic platforms to satisfy individual needs of customers. It is direct marketing
based on electronic communication.
e) Various forms of promotion are used in Nepal inform the customers about goods and
services. Among several promotion tools, personal selling and advertising are the
traditional tools used by Nepalese traders form the time immemorial.
These days, we have several types of promotion tools in Nepal including print Media,
radio, television, and FM channels.
Print advertising began in 1949 B.S., radio advertising began in 2007 B.S., television
advertising began in 2041 B.S., and advertising through FM channels began in 2051 B.S.
In Nepal, most of the business communities use advertising, sales promotion and
personnel selling tools covering almost all types of products including fast foods, soap,
electronic and electric goods, bank and insurance services, games, readymade garments,
tourist service packages etc.
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CAP-II, Business Communication, Dec 2013
Suggested Answer
Marks
Section -'A'
1. Read the following case carefully and answer the questions given below: (5+5=10)
Assume that you are the head of the department of loan in Prabhu Commercial Bank.
Barahi Consultancy is one of the regular debtors of your bank. The institution had
been paying the regular installments of the loan. However, for the last two months the
consultancy has not paid the two installments of the loan to your bank despite having
them learn about it through reminder letters twice earlier.
a) As an authority of the bank, write a reminder letter to the director of Barahi
Consultancy, reminding him/her about the payment based on the case.
b) As an assistant accountant of Barahi Consultancy, write a reply to the reminder
letter of Prabhu Bank.
Answer:
a)
Prabhu Commercial Bank
Central office
New Road, Kathmandu
Date: April 20, 2013

Ref no: 144/013
Mr SP Gupto
Managing Director
Barahi Consultancy
Putalisadak, Kathmandu.
Dear Mr Gupto,
This is to remind you that your payment for last two installments has already delayed.
Though we reminded you about this twice before, you have not taken any action and
response to this. We understand that you are one of the most sincere and ethical business
partners of ours. However, from this case we are obliged to think that you have
overlooked this being concerned much about your business. We have decided to remind
you about this issue once through this letter and take necessary actions if you deny to
respond.
We still hope that you will understand the situation and co-operate us with payment at
your earliest convenience. Please let us know about your intentions.
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P.T.O.
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Yours sincerely
………………..
Romesh Karn
Head, Department of Loan
b)
Barahi Consultancy
Putalisadak, Kathmandu
April 22, 2013
Mr Romesh Karn
HoD
The Department of Loan
Prabhu Commercial Bank
Kathmandu
Dear Mr Karn
We regret to the latest transaction that we with some internal obstacles of our house are
lacking to manage well. We are very honestly accepting the facts of your reminder letter.
Since we are reaching the conclusion of the talk with our staff union, we are going to
settle our internal problem soon, and we will prioritize your payment.
We feel sorry about the inconvenience that we have caused, and we commit for earliest
settlement of the instalment.
Thanking you,
Sincerely,
…………….
Suban Adhikari
Assistant Account Officer
2. Why is it important for business persons to develop the intercultural communication

skills? 10
Answer:
The globalization process is forcing business people to rethink their strategies.
Intercultural communication skills assume an ever larger role in global marketing
and sale strategies. Consequently, language programs need to respond to these
changes. Future business managers must acquire effective intercultural competence.
The one world market has forced businesses to think global, act local, and integrate.
In this pretext, intercultural communication serves a vital role since it helps to avoid
miscommunication, prevent misunderstandings, and avert mistakes.
Three trends are working together to crystallize the growing need for developing
multicultural sensitivities and improved communication techniques: (1) globalization
of markets, (2) technological advancements, and (3) a multicultural workforce.
(Students may include the following details)
a) Globalization of Markets: --Doing business beyond our borders is now
common place. National boundaries mean less as business expands through
mergers, alliances, and acquisitions.
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--Favorable trade agreements and the growth of the middle class fuel the
expansion of global markets
b) Technological advancements: -- Advancements in transportation and

information technologies contribute to global interconnectivity.
--Companies use the Web to sell products, provide support, offer service,
investigate the competition, and link to suppliers.
c) Multicultural workforce: -- Immigration makes cross-cultural communication

skills increasingly necessary. People are on the move. Lured by the prospects
of peace, prosperity, education, or a fresh start, persons from many cultures
are moving to countries promising to fulfill their dreams.
3. Why and how do businesses communicate with their customers? (5+5=10)

Answer
Businesses communicate with their customers for many reasons, including gaining
feedback on satisfaction, answering queries and providing updates on new products
or events. In order to do so, a number of interaction techniques can be employed,
ranging from the highly sophisticated to the fairly conventional.
For promotional purposes, the most common form of contact is a letter or leaflet sent
to the customer‟s address. This is straightforward way of informing the customer of
new developments.
Lately, there has been a growth in the popularity of e-mail messages to customers.
Furthermore, videos can be transmitted electronically, allowing viewers to watch
product demonstrations or interviews from the comfort of their own homes. It is now
possible to upload a video to YouTube.
Increasingly, firms have become more reliant upon websites as another way of
“talking” to customers. As well as being an excellent advertisement tool, a website
can be used to track customers‟ buying habits.
Organizations wishing to measure their customers‟ satisfaction can distribute
questionnaires, or provide them online. By asking a range of questions, they can use
feedback to improve future performance and deter from purchasing rival products.
To provide a more personal means of communication, most businesses operate
telephone services. The main benefit of the telephone is that it can assist both
parties; businesses can call clients to gain opinion or promote events, and customers
can call businesses to ask questions or express interests.
4. Team work is assumed to be effective in the success of a given task in an
organization. Drawbacks of team work are also pointed out by the practitioners of the
field. Explain in brief five advantages and five drawbacks of group or team work in
the business organizations. (5+5=10)
Answer
Groups are formed in the business sector with a motto that a defined goal should be
fulfilled by exploring the potentials of the members of the group. The professionals,
experts, technical minded people, etc may gather with a thought of initiating some
entrepreneurial work, and this is how groups or teams are formed in the business
organizations. However, a mere aggregation of people does not make a group in
business. They need to possess a common goal related to some business activities.
They need to be bond with some institutional rules and systems. A well formed
business group possesses a number of merits since collaboration of ideas, skills, and
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talents always work better than the single one. Some of the advantages of team work
(or group work) include:
 Group for mutual feedback, collaboration and reinforcement
 Groups offer outlets for creative and innovative expressions of the members
 Group for increased mutual accountability and collective achievement
 Group enhances accessibility to increased sources of information
 Group for diversity of views and alternatives
Despite a number of advantages, a group is supposed to have some disadvantages or
drawbacks too. Some of the striking drawbacks of group in business are:
 Sacrifice of individual capacity, identity and distinctiveness
 Unwanted pressure and rigidity of principles
 Conflicts and misleading procedures
 Lack of accountability
 Consensus problem in heterogeneous groups

a) Major parts or components of a report
b) Communicating nonverbally
c) Preparing for interview
d) Communicating in the workplace
e) Roles of audio-visual material in oral presentation
Answer:
a) Major parts or components of a report
A report is generally prepared after carrying out a research or study, being based
on its specific issues and essence including objectives, methodology and findings.
The basic components or parts of a complete report may include: title page, cover
letter, table of contents, list of illustrations, abstract, body of report, bibliography,
and appendices. The body includes introduction, objectives, problem statement,
methodology, discussion, findings, recommendations, and conclusion. The cover
page is meant for exhibiting the information on the title, researcher or report
writer, institution where the report is submitted, and date of submission. The table
of contents and the list of illustrations obviously present the contents, figures,
tables, and charts involved inside the report. Abstract is the summary of the entire
report. The body of report includes different information in detail but each dealing
needs to be specific, brief, and systematic. Finally, in the appendices, the data and
other relevant materials that cannot be kept in the report but are important to
understand the essence of the report are kept.
b) Communicating nonverbally
Nonverbal messages are sent by our eyes, face, and body. For example, sustained
eye contact indicates trust or admiration; brief eye contact may signify fear or
stress. Expressions on a communicator‟s face can supplement or entirely replace
verbal messages. Posture can indicate status, confidence, shyness, or
submissiveness. Gestures also send nonverbal messages, many of which are
culture dependent. Moreover, how a communicator uses time, space, and territory
sends messages that require no words. The amount of space we need for social
interaction can be another means of sending messages nonverbally.
c) Preparing for interview
An interviewee is required to have a good preparation for the interview. Particularly, in the job
interview he or she needs to persuade the interviewer(s) by exhibiting proper confidence, power
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to deal with problems, ability of contents, and so on. Generally, the interviewee needs to focus
on the following things;
1. Do research about the company: The interviewee needs to be equipped with the relevant
information about the company. For this, he or she may conduct a research like task that
helps him or her to find out the appropriate information.
2. Plan your schedule: Planning about the time table is also an important preparation for an
interview. An interviewee needs to be punctual.
3. Dress up appropriately: Normally, formal dress up is proffered in an interview. The dress
up needs to be suitable to one‟s personality too.
4. Rehearse and prepare: Rehearsing is an important activity before interview. One can ask
and answer himself or herself just like in the interview. Or, one can ask his friend or any
person to act as interviewer. This promotes confidence in the candidate.
d) Communicating in the workplace

Communication in the workplace can be accomplished by many means, including:
 Signs and posters
 Letter and written notices from management
 Formal presentations to groups of employees
 group meetings and discussions
 training sessions
 observing experienced employees
 one-on-one conversations
 written memos and reports
e) Roles of audio-visual materials in oral presentation
Oral presentation needs to be highly systematic and comprehensible to the
audience. Unlike in the case of written presentation, the presenter gets very few
opportunities for thinking, acting, editing, and presenting in the oral presentation.
So, a comprehensive plan and equipment are required by the oral presentation.
The audio visual materials play important roles in making the presentation more
effective and meaningful to its audience. When the presenter is speaking
continuously, it may be monotonous, boring, and incomprehensible for the
listeners. They could be demotivated toward the essence of the presentation. But,
if the presentation is accompanied with some audio visual materials such as in
the computer, or in the video, then such materials may attract the attention of the
audience, and the presentation may be more meaningful to them. Additionally,
audio visual materials help people develop proper schemata about the given
concept.
QCS 1857
Section -'B'
CAP-II-Marketing-Sugg.Dec.2013
Wai Wai brand of instant noodles is produced by Chaudhary Group in Nepal under
technical collaboration with Thailand. Out of many brand of noodles in Nepalese
market Wai Wai is commanding about 50% share of Nepal‟s market which is
increasing by about 10% per annum. Recently due to competition from Mayos, Rara,
2 PM, Maggi brands, Wai Wai has only about 40% of the domestic market share. In
India, it has been commanding over 50% market share. It has started to expand the
market to other South Asian countries as well.
Wai Wai has 38 distributors in 20 states of India and a 50 member sales force. In
addition, Nepali Youths studying in India act as "Wai Wai ambassadors" to back its
marketing drive. The brand is at present available in Gujarat, Karnataka and Tamil
Nadu. Now it is being expanded to the markets of six more Indian States. Wai Wai
noodles of Indian Rs. 400 million are being exported to India. Wai Wai is already a
market leader in Bhutan and also sells well in Tibet. The next expansion is scheduled
for Bangladesh and Pakistan.
To capitalize on this opportunity to expand trade, heavy marketing expenses and
innovative promotional ideas are essential. Looking at competitors in Indian market,
Chaudhary Group also plans to invest handsomely in advertising the product over
India`s electronic media besides using brand ambassadors.
Questions:
a) Assess the marketing strategy of Chaudhary Group. 5
b) Give your opinion about the prospects of noodles industry in Nepal. 5
Answer:
a) In the given case Chaudhary Group of Industry(CGI) has been found practicing market oriented
strategic planning. The following factors can be regarded as marketing strategy of wai wai noodles
in the national and international market.
- CGI has successfully penetrated its brand of noodles to Nepalese as well as Indian and South Asian
market as a step by step process.
- CGI has given proper attention to it‟s marketing mix in which it has well expansion program as
well as promotional program.
- Satisfactory marketing mix has made wai wai popular and its demand has increased fast.
- CGI has given due attention to it's strengths, weaknesses, opportunities & threats by scanning the
market environment.
- CGI has established its position in national as well as international market.
- Use of youth studying in India as brand ambassadors & use of electronic media are also parts of
marketing strategy.
At the end we can say CGI has prepared a good business plan to conduct successful business.
b) The prospects in favor of noodles industry in Nepal are:

- Numerous brands of noodles have shown their ability to have a profitable sale. Success of CGI can
be taken as illustration.
- Noodles industries are doing business analysis as well as SWOT analysis. Volume of production,
sales & profit of different brands & their market share/size is increasing.
- Comparatively CGI has been able to capture larger share in national market & is making profitable
sale in international market.
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- If satisfactory marketing mix is developed, definitely noodles products would have bright future
prospects.
If good business plan is prepared with effective product position, differentiation strategy, proper
product life cycle strategy & strategic control which social responsibilities, noodles industry in
Nepal has bright prospects.
7.
a) What is marketing? Explain the selling concept of marketing. (2+3=5)
b) What is marketing research? Give your opinion about the essentials of marketing
research process. (2+3=5)
Answer:
a) Marketing activities are all activities associated with identifying the wants and needs of target
market of customers, and satisfying those customers better than their competitors. This involves
doing marketing research about customers, analyzing their needs and making strategic decisions
about product design, pricing, promotion, and distribution. Actually, marketing deals with
identifying and meeting human and social needs.
Thus, marketing is meeting customer needs profitably.
Selling concept holds that consumers and businesses, if left alone, will ordinarily not buy enough
of the organization‟s products unless it undertakes a large-scale selling and promotion effort.
Therefore the organization must undertake an aggressive selling and promotion effort. The selling
concept is practiced most aggressively with unsought products, products that buyers normally do not
think buying, such as insurance and encyclopedias. Most firms practice the selling concept when
they have overcapacity. Their aim is to sell what they make rather than make what the market wants.
Such marketing carries high risk. It focuses on creating sales transactions rather than on building
profitable relationships with customers. It assumes that consumers who are coaxed into buying the
product will like it. Most studies show that dissatisfied customers do not buy again. whereas the
satisfied customer tells others about good experiences. The dissatisfied customer tells others about
bad experiences.
b) Marketing research is an objective and systematic search for analysis of information relating to the
identification and solution of marketing problems. The main objective of marketing research is to
provide most relevant, internal as well as external, information or most pertinent information to the
marketing manager for making suitable marketing plans and decisions.
A good marketing research should have the following essential features:
 Objectivity is important requirement of marketing research. The main focus is that the marketer
should be free of bias to identify the real problem.
 It should be a systematic search i.e., it should follow step-by-step process like in scientific
research.
 It should be informative i.e., marketing research is a game of information that should collect
adequate information and disseminate adequate messages to the decision-maker to make right
decisions.
 Marketing research should start with the identification of real marketing problem so that it can
provide pertinent solution to the problem.
 Marketing research is actually a decisive search; it provides decision support information to the
marketing decision-makers.
8.
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a) What is promotion? Explain its objectives. (2+3=5)
b) What is product life-cycle in marketing? Explain the major contributions of
product life-cycle that a marketer must understand to make business successful
and sustainable. (2+3=5)
Answer:
a) Promotion is one of the major elements of marketing mix which provides valuable information to
consumers about product, its price, availability, utilities and benefits. Promotion consists of various
activities that facilitate exchanges with target customers through persuasive communication to
stimulate the demand of the product.
Promotion includes various types of activities such as advertising, sales promotion, personal selling,
publicity and public relation to inform, persuade, remind and reinforce the target market about the
company‟s offerings. These activities influence the customer‟s feelings, belief and behavior for
buying.
The major objectives of promotion are informing, persuading, reminding and reinforcing the
customer about the product.
i. Informing:
The main objective of promotion is to inform the market about product, price, availability, utilities
and benefits. It helps to develop awareness about the product It also provides alternatives to the
customers for purchase decision.
ii. Persuading:
Promotion persuades customers to make the purchase decision in favor of the promoted brand.
Promotion is persuasive communication. It stimulates product demand through appealing ads,
incentives and benefits. Promotion influences, buyer behavior. Promotion also persuades middlemen
to carry such product.
iii. Reminding:
Customer normally have short-lived memory. It is impossible for customers to remember all
advertised brands. So, marketer reminds customers about the product by using various promotional
tools. The marketer assumes that customer may forget unless they are constantly reminded.
iv. Reinforcing:
Promotion is equally important in post purchase stage of the buying process. Consumer may feel
anxiety after their purchase decision. Marketer often provides reinforcing message to increase
customer‟s satisfaction level. Repeated reinforcement also leads to brand loyalty. By reassurance to
customer, marketer tries to reduce cognitive dissonance and build brand and corporate image.
b) The product life-cycle is a concept that attempts to describe a product‟s sales, profits, customers,
competitors, and marketing emphasis from its beginning until it is removed from the market. The
product life-cycle concept is used as the strategy to sustain the firm‟s product in the market by
adopting suitable strategies relating to marketing mix, competitive effort, investment, and other
essential tools whenever and wherever necessary.
Product life-cycle (PLC) concept can be beneficial to the marketers for making their business
success and sustainable in the market in the following ways;
 The PLC concept gives messages to the marketers that all products have limited life like a living
creature; they may be dead if appropriate strategies are not adopted at appropriate time period.
 A product passes through five stages – introduction stage, growth stage, maturity stage,
saturation stage and declining stages. These are the various stages of product life-cycle.
 It also communicates to the marketers that product sales pass through distinct stages, each posing
challenges to the seller. Even a popular brand may have to pass through several conditions and
threats.
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 Products cannot guarantee good profits on regular basis; it may rise and fall at different stages of
the PLC depending upon the changed situation.
 Products require different marketing strategies at different stages of their life-cycle to make them
successful and sustainable in the market.
Marketers, who understand the product life-cycle concept clearly and before and after the launch of
product in the market, can enjoy a lot of opportunities, reduce the level of business risks, win the
competitive edge and succeed in their business efforts.
9.
a) What is advertising? Explain the importance of advertising to the marketers. (2+3=5)
b) How can economic factors affect the buying decision of an individual buyer?
Explain with the help of suitable examples. 5
Answer:
a) Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or service
by an identified sponsor. It is a cost effective way to disseminate message to scattered large masses.
Advertising can be used to give information, persuading consumers, reminding and reassuring them
for creation of demand.
Advertising today has got a prominent role in the promotion program of all firms/companies. Many
methods, media, agencies are playing active role to meet advertising objectives of the companies. A
lot of people are involved to design attractive advertising messages. Newspaper, journals, posters,
radio, TV, video are a few ad vehicles popularly used by the organizations.
The following variables clarify importance of advertising to the marketers:
 Communication of information/message.
 Creation and extension of demand.
 Introduce new product.
 Educate, persuade and remind.
 Influence to make buying decision.
 Save time and money.
 Help to achieve organizational goals.
 Image building.
 Selling on mass scale.
 Help middle men
 Protection from competition etc.
b) An economic factor indicates the ability and willingness of an individual buyer to buy a product.
Ability and willingness to buy reflects the purchasing power of that buyer. There are many economic
forces that affect the buying decision of an individual buyer. They are:
 Level of regular personal income, including both discretionary income and disposable income.
Higher disposable income increases purchasing capacity of the individual consumer.
 Income of other members of the family i.e., when many of the family members earn income, the
purchasing power of an individual family member becomes better.
 Expectation of income in near future from other sources or income through lottery, or from any
other means. These evidences may improve the purchasing capacity of an individual consumer.
 Availability of liquid assets in the form of bank balance, share investment, government bond, etc.
If the consumer has adequate liquid assets, purchasing capacity can be high even though the
regular income is limited.
 Availability of credit facility in the country. The purchasing capacity may be higher if credit
facilities are available in the country by financial institutions for desired purposes.
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 Past expenditure habit of the consumer. If the consumer was extravagant in the past, he will
spend more on desired product to maintain his/her standard of living even by selling his/her
property.

a) Marketing environment
b) Market entry pricing strategy of a firm
c) Niche marketing
d) Market segmentation
e) Sales promotion and its features
Answer:
a) A company‟s marketing environment consists of all the factors and forces outside marketing that
affect marketing management‟s ability to build and maintain successful relationship with target
customers. Successful companies know the importance of constantly watching and adapting to the
changing environment.
perspectives on the marketing environment, namely the macro environment and the micro
environment. Macro environment consists of political, economic, socio-cultural and technological
forces.
b) Market-entry pricing strategy indicates the pricing strategy to be adopted when a new firm enters the
target market for the first time. Marketers can use two alternative strategies in this situation –
penetration pricing strategy and market-skimming pricing strategy.
Market penetration pricing involves setting low price for the new product in the initial period with a
view to expand the market size and thus obtain a large sales volume and larger market share. When
the market is established in desired size, price will gradually be increased according to increase in
demand for product.
While market-skimming pricing strategy involves setting high price for a new product in the initial
stage assuming that the customers will pay high price for the new product. But when the level of
competition goes on increasing, effort will be made to reduce the price level to meet the competition
and survive in the marketplace.
c) A niche market is more narrowly defined group seeking a distinctive mix of benefits. Marketers
usually identify niches by dividing a segment into sub-segments. For example, the segment of heavy
smokers includes two niches: those who are trying to stop smoking and those who don‟t care.
In an attractive niche, customers have a distinct set of needs. They will pay a premium price to the
firm that best satisfies their needs. The niche is not likely to attract other competitors. The nicher
gains certain economies through specialization if the niche has size, profit and growth potential.
d) Market segmentation is a process of dividing the total market into several smaller groups, such that
the members of each group are similar with respect to the factors that influence demand. Dividing
the total market in distinct smaller groups helps to identify real needs and characteristics of buyers.
If market is heterogeneous, it is difficult to satisfy needs but if divided into homogenous units
market needs can be assessed and fulfilled in a proper manner. In Nepal its application is increasing.
Mass marketing, product variety marketing, individual marketing and target marketing are some of
the common approaches found in dealing with the market. There are two bases for segmenting
customer markets: consumer characteristics and consumer responses.
e) Sales promotion consists of a diverse collection of incentive tools, mostly short term, designed to
stimulate quicker and /or greater purchase of particular products/services by consumers.
Features of Sales Promotion
 Sales promotion includes incentive tools
 Sales promotion is a short term measure
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 Sales promotion is targeted at quicker and /or greater sales
 Sales promotion is directed either at customers or at the channel members
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CAP-II, Business Communication, June 2013(Suggested Answer)

Total No. of Questions - 5
Time Allowed – 1 and 1/2 Hours
Marks
Section -'A'
1. Read the following case carefully and answer the questions given below: (3+3+4=10)
When Indira Sharma joined PepsiCo as chief strategist, she convinced management to
sell off its fast-food holdings in Taco Bell, Pizza Hut and KFC. She was intent on
moving the company “from snack food to health food, from caffeine colas to fruit
juices, and from shareholder value to sustainable enterprise.” Her goal was to do good
for business as well as doing good for people and the planet. PepsiCo, under her
leadership, would favor wind and solar power, avoid fossil fuels, fight against
obesity, and promote diversity.
To achieve these ambitious goals, Sharma instituted “Performance with Purpose,” a
portion of which is explained in the following three components:
 Human sustainability refers to PepsiCo‟s efforts to nourish consumers with a
range of products from treats to healthful eats.
 Environmental sustainability reinforces PepsiCo‟s commitment to protect natural
resources and operate in a way that minimizes the company‟s environmental
footprint.
 Talent sustainability focuses on developing the company‟s employees by creating
a diverse and inclusive culture, and evolving PepsiCo as an attractive destination
for the world‟s best people.
Convincing PepsiCo managers and employees to accept her “Performance with
Purpose” plan was a monumental task that would involve significant changes in
products and procedures within the enterprise. In any organization, change is
accepted slowly and often reluctantly. Encouraging managers, employees and
investors to buy changes in company philosophy is often difficult.
Issues for Critical Thinking:
a) In communicating the changes in philosophy and practice within PepsiCo, should
Indira Sharma and her management team use formal or informal channels of
communication? Give examples of each.
b) In the midst of organizational changes at PepsiCo, what kinds of messages do you
think will be traveling downward, upward, and horizontally?
c) What kinds of barriers block the flow of communication in any organization
undergoing change? (3+3+4=10)
Answer:
a) Certainly, Ms Shrama and her management team should use both formal and informal
channels of communication. In formal channels, they may organize the formal meetings with
stakeholders, send written correspondences within and outside the organizations, advertise
the new program through public medias, disseminate the message through press conferences,
etc. In informal channels, they may visit the target groups and talk personally, organize
parties and gatherings, use telephone calls, etc.
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b) Memos like, asking responses of the staff about going to the new practices by upper level
management, asking the staff to perform certain tasks regarding these new practices, and
assigning them the responsibilities are some of the examples of downward communication.
Staff sending responses to the upper level management, asking for clarification of some
aspects in which they are confused, sending their reactions and feelings to the new changes
through memos and other channels are the examples of upward communication. Likewise,
interdepartmental discussions about the new changes, meetings of the officers of same level,
interdepartmental coordination of certain tasks are the examples of horizontal communication
which will be practiced during the organizational changes at PepsiCo.
c) An organization that is undergoing changes may suffer from different types of
communication barriers. Suspicion to new policy and fear of uncertainty may hinder the
effective flow of communication in such organization. In most strategic organizational
change, at least some employees will be asked to assume different responsibilities or focus
on different aspects of their knowledge or skill. The greater the change a person is asked to
make, the more pervasive that person‟s fear will be. There will be fear of change. More
important, however, there will be fear of failure in the new role. Involving employees as soon
as possible in the change effort, letting them create as much of the change as is possible and
practical is key to a successful change effort.
Besides, the receiver may not give proper attention and show no interest to the proposal of
some new member and may think the new proposal irrelevant for the organization that is
running smoothly. Hence, the receiver may bypass the message. Sometimes, people may
have different perceptions because of which they may not come to the common ground of
sharing.
2. Show your acquaintance with the concept of „globalization of culture‟. Discuss the
role of cross-cultural communication in the globalized context of the world cultures.
Also suggest some useful strategies to promote cross-cultural communication in the
organizational level. 10
Answer:
In the context of the rapidly changing world, culture is viewed, interpreted and understood in
the vast global context. Cross cultural campaigns are conducted in every sector such as
business, education, communication, media, and so on. Culture is being globalized in many
ways. Basically media is responsible for globalization. People learn the ways of living and
working from others in today‟s post modern world. Globalization of the cultures involves
three primary things:
 Understanding culture in broader perspective,
 Promoting cross-cultural relationship between /among people of diverse cultures working
in diverse work situation, each respecting each other‟s cultural norms and \ values, and
 Changing traditional cultural perceptions incompatible with the changing needs of today.
Cross cultural communication should be promoted in the globalized context of the world
cultures. Work places are largely diverse. In order to reduce the misunderstandings caused by
work place diversity, cross cultural communication networks need to be established. For the
promotion of the cross cultural communication, the following strategies may be adopted:
 Allow different languages for official work. Cultures of even minorities need to
be acknowledged.
 Conduct seminars, workshops, etc. to familiarize people with each other.
 No single language and working style may be a standard one; every language, and
working style is equally important.
 Design increasing meetings, useful for all cultures.
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 Build cohesive multi-cultural work teams.
 Create a corporate culture that can accommodate diversity to maximize the potential of
your workforce
3. Imagine that you work for XYZ Company that produces computer chips. Though
there is high competition in the market, the company had run its business smoothly
for last few years. From the last quarter of the year, the sales dropped by 14% and the
CEO asked you and your team to make a thorough market study and find out the
causes of the low sales rate. After a month‟s study you came to the conclusion that
lack of effective communication between sales associates and buyers is responsible
for the problem. Now, write a report to your CEO Rajani Sharma in memo format
stating problem and proposed solutions. Your report may contain the sections like,
overview, problem statement, proposed solutions, advantages/disadvantages of the
solutions, and conclusion. 10
Answer:
 TO: Rajani Sharma, CEO
FROM: Indra Prasad Joshi
DATE: October 23, 2012
RE: Report to Reduce Communication Problems and Increase Sales
Overview
Last quarter, our sales dropped 14%. I believe a communication breakdown between sales
associates and buyers has contributed to the decline.
In our company, most sales associates do not know their buyers. The sales associates I spoke
with felt intimidated by and did not communicate with the buyers. The buyers, on the other
hand, aren‟t receiving the information they need to purchase the merchandise that the
customers want.
In this report, I‟ll provide more information on the problem and offer a solution that I believe
will help improve communication and increase sales.
Statement of the Problem
Simply stated, the problem is a lack of communication between the buyers and sales
associates. The sales associates, who work directly with the customers, know what shoppers
are looking for and what they request. Now that the company is emphasizing customer
satisfaction, it is more important than ever to have the merchandise that customers want.
Proposed Solution
To ensure that our customers receive the merchandise they want, we need to set up a regular
exchange of information between the buyers and the sales associates. This can be
accomplished by having regular meetings and by conversations over the phone.
We could arrange meetings, which would require each department‟s buyers to go to three
stores monthly. Since there are 22 stores and two buyers per department, one buyer would
visit each department about once every quarter. The meetings could be held in either the
department‟s office or in the store training room.
Between meetings, I recommend that sales associates call their buyers directly at least
monthly.
Advantages and Disadvantages of Adopting the Solution
To save time and costs, I considered communication solely by mail or telephone, but I
rejected these options because they lack timeliness, direct feedback, and face-to-face
interaction. Without meeting and brainstorming, the quality of the discussions is diminished.
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Sales associates are used to working directly with customers, and they feel more comfortable
meeting face-to-face.
Communicating by mail would be less expensive than having meetings, but it creates a time
delay in any interaction. This delay could frustrate both the associates and the buyers, which
could lead to reluctance in writing and a return to the original problem.
Communication only during the meetings between buyers and sales associates would not be
effective simply because of infrequent interaction (every 3–4 months).
Other benefits of improving communication between the buyers and the sales associates
follow:
• Improved customer relations because we‟ll be responding to their merchandise requests
• A mutually beneficial working relationship between buyers and sales associates
• Increased sales because we‟ll be stocking merchandise that customers want
An added benefit could result when the buyers actually visit the departments of the sales
associates and see the floor plans. With their merchandising experience, buyers might
suggest alternative ways of arranging the products on the floor to increase customer traffic
and encourage sales.
With direct interaction between buyers and sales associates leading to more frequent
communication, we should notice a better and more productive working relationship.
Conclusion
Our sales have dropped 14% in the last quarter, and I believe that lack of communication
between sales associates and buyers has contributed to the drop-off. To resolve the lack of
communication, I recommend establishing regular meetings and telephone conversations
between buyers and sales associates as described in this report.
If communication between sales associates and buyers takes place, buyers should begin to
understand the needs of customers through their sales associates. From this, customer
satisfaction will increase as well as sales.
4. Following a specific total quality management (TQM) strategy will help your team
succeed. What strategies would you adopt for such successful collaboration? 10
Answer:
 Following the TQM strategy could lead to a successful collaboration:
- Develop your team
- Choose a team leader
o Assign duties
o Create schedules (project milestones)
o Encourage group participation
- Determine your team goal
- Identify the problem
- Analyze the problem‟s causes
- Determine potential improvements
- Verify suggested solutions
- Write the text
5. Briefly explain any FOUR of the followings: (4×2.5=10)
a) Preparing and practicing for job interview
b) Business ethics
c) Non-verbal communication skills
d) Internal and external functions of communication
e) Combating stage fright during business presentations
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Answer:
a) After you have learned about the target organization, study the job description or job listing.
Knowing as much as you and about the position enables you to practice your best response
strategies prior to the interview. The most successful job candidates rehearse success stories
and practice answers to typical questions. As part of their preparation before the interview,
they decide what to wear, and they gather the items they plan to take with them.
b) The term „business ethics‟ refers to the communication and dealing tendencies based on
truth, honesty and fairness. Business dealings should always be based on business ethics.
Successful business dealing is oriented to truth, and fair activities. Sometimes we also find
business organization and people who are commonly violating the norms and ethics of
business. If such violence occurs inside the organization, it is called internal unethical
dealings. If the violence of business ethics occurs in the dealings with outsiders such as
costumers, suppliers, etc. it is known as external unethical dealings. In this way, unethical
dealings which take place with the outsiders are called external unethical dealings. For
example, plagiarisms, presenting false statement, etc. are the general instances of external
unethical dealings. Business dealings that avoid both internal and external unethical features
are assumed to have business ethics.
c) Non verbal communication skills: These include the aspects such as body language, gestures,
facial expressions, eye contact, etc., which also become a part of the communicating process;
as well as the written and typed modes of communications. It avoids the use of words.
Verbal communication is normally used for communicating information about events
external to the speakers, non-verbal codes are used to establish and maintain interpersonal
relationships. It is considered more polite or nicer to communicate attitudes towards others
non-verbally rather than verbally, for instance in order to avoid embarrassing situations.
d) Internal communication includes exchanging ideas and messages with superiors, coworkers,
and subordinates. Some of the functions of internal communication are to issue and clarify
procedures and policies, inform management of progress, develop new products and services,
persuade employees or management to make changes or improvements, coordinate activities,
and evaluate and reward employees.
e) Nearly everyone experiences some degree of stage fright when speaking before a group.
Being afraid is quite natural and results from actual physiological changes occurring in your
body. Faced with a frightening situation, your body responds with the fight-or-flight
response. Following the techniques suggested by communication experts, like preparing
thoroughly and rehearsing, taking deep breath before speaking, diverting the attention from
oneself to the subject matter, and many more will help you combat the stage fright.
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SUGGESTED ANSWER
CAP – II – MARKETING – JUNE, 2013

Total No. of Questions - 5 Total No. of Printed Pages - 1
Marks
Section -'B'
The Bata Shoe Organization (BSO) was founded by Tomas Bata on 24 August 1894
in Czech Republic (former Czechoslovakia). Over the years, Bata has established
itself globally and operates more than 4600 retail stores in over 50 countries including
Nepal. Bata is estimated to serve one million customers each day and employs more
than 40000 people. It has sold more than 15 billion pairs of shoes – more than the
number of people who have walked the earth during this time. If all the shoes sold by
Bata are laid end to end, they would extend to 12 million kilometers. The Bata pricing
in global market has nothing to do with psychological pricing as is widely believed.
The company has given emphasis on continuous product quality improvement.
According to the Marketing Director of BSO, “Quality is the central of all marketing
and thus Bata shoes deserves premium price in global market in comparison to
competing brands.”
a) Comment on the distribution strategy used by the BSO. 5
b) On the basis of above case, explain the marketing philosophy used by BSO. 5
Answer:
a) Comment on the distribution strategy used by the BSO.
Ans: Distribution strategy used by Bata is intensive distribution. In intensive distribution
strategy, marketers use maximum number of retailers to make the product easily accessible
and available in the target market. In the given case it is mentioned that Bata has established
itself globally and operates more than 4600 retail stores in over 50 countries including Nepal.
Operation of more than 4600 retail stores in over 50 countries means in an average there are
at least 92 retail stores in each country which clearly indicates use of intensive distribution
strategy.
b) On the basis of above case, explain the marketing philosophy used by the
organization.
Ans: On the basis of given case, marketing philosophy used by the organization is product
concept. This concept holds that customers are ready to pay reasonable price for quality
product. The main emphasis is given to quality improvement. In this case the focus of all
marketing is quality. High quality with premium price and high profit margin in the global
market indicates that the organization‟s marketing activities are guided by the product
concept philosophy of marketing.
7.
a) What is marketing? Briefly explain the importance of marketing to our dynamic
society of today. (2+3=5)
b) What is marketing information system? Explain the role of decision support
system in a firm‟s marketing information system. (2+3=5)
Answer:
a) Marketing is a total system of business activities designed to plan, price, promote and
distribute want satisfying product to target market to achieve organizational objectives. It
includes all exchange related activities which direct the flow of goods and services from
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producer to consumer. Today marketing is fast growing. It is dynamic, competitive and
consumer oriented. Marketing provides value and benefits to customers, firms and the
society. A large number of people have got employment in this sector. Besides customers
supremacy, marketers fulfill social responsibilities. Economically marketing is very
important for the country.
Importance of marketing to our dynamic society can be seen from the following
points:
-creation and delivery of utility and rise in standard of living
-employment generation
-optimum utilization of resources
-revenue generation
-economic development
-poverty reduction
-globalization through marketing networks etc.
b) Basically, MIS is a structured interacting complex of persons, machines, and procedures
designed to generate an orderly flow of information collected from both internal and
external sources for use as the basis for decision making in specified areas of marketing
management.
 The MIS is a carefully developed master plan for information flow.
 There must be coordination among departments and individuals, including top
management, marketing research, personnel, finance, system analysts, programmers,
and computer experts.
 Advance in computer technology, data copying, storage, and retrieval have been
instrumental in the growth of sophisticated MIS.
MIS consists of basically the following components –
i. Internal Records System;
ii. Marketing Intelligence System;
iii. Information Processing System;
iv. Decision Support System; and
v. Marketing Research.
The role of Decision Support System(DDS) is very important in marketing information
system because it provides “ready-to-use” information to the marketing decision-makers. Its
significant role in marketing information system can be viewed in the following ways -
 Decision Support System is a set of statistical and mathematical tools and decision
models that help the marketing managers in analyzing data gathered through the sub-
systems of MIS for making rational decisions.
 Analytical system helps marketers to make decisions. In other words, analytical systems
allow a firm to ask, "Why did that happen?" and "What will happen if……..?"
Mathematical and/or statistical tools and decision models are used to solve several
marketing problems such as media selection problems to evaluate new product
acceptance, weighing sales and pricing alternatives, and so forth.
 It maintains a “Data Bank” which can supply required ready-to-use data to the decision-
makers whenever required.
8.
a) What is target market? Explain the evaluation criteria to select the target market
for business purpose. (2+3=5)
b) What is packaging? Explain the features of good packaging. (2+3=5)
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Answer:
a) Target market consists of specified or identified market segments where the marketer wants
to enter for obtaining expected benefits. In other words, target markets are those groups of
people whom the firm wants to serve or wants to design product or services to meet their
needs and wants.
Selection of appropriate target market is essential for every marketing firm. This task can
be done by adopting the following evaluation criteria:
 Predict demand for each segment of a product market,
 Analyze competitive position of the company in each segment.
 Predict segment size and profit size.
 Analyze and assess the potential corporate goals and objectives in the market
segment.
b) Packaging is one of the very important parts of product development process. Most
physical products have to be packed. It is concerned with all the activities of designing and
producing the container or wrapper for a product. Properly designed packages help to
promote sale, convenience to consumers and protection to the product. It also helps to
create brand image and facilitate self service system in retail stores. The following are the
features of good packaging:
-convenient
-attractive
-economical
-protective
-communicative
-environment friendly
9.
a) Identify the components of physical distribution system and explain the
importance of transportation decision in marketing system. (2+3=5)
b) What is pricing? Explain how price is determined under-going rate pricing
method? (2+3=5)
Answer:
a) Physical distribution is concerned with the management of physical flow of goods from the
points of suppliers to the points of purchasers. The main objective of physical distribution
is getting the right products safely to the right places at the right time at the least possible
cost. More specifically, the objectives of physical distribution are:
a. To provide customer service;
b. To distribute goods more safely at right time;
c. to minimize the total cost; and
d. To supply goods to the right target market.
Physical distribution system consists of a set of interrelated functions with the following
elements:
i. Order Processing
ii. Inventory Management & Control
iii. Warehousing
iv. Materials handling and
v. Transportation
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vi. Channel information management.
Transportation plays a significant role in marketing system in the following ways:
i. It assures regular mobility of factors of production from one place to another. It makes
continuous production possible;
ii. It facilitates distribution of goods within a short period of time i.e., it ensures quick
delivery of goods;
iii. It makes shopping of goods convenient throughout the country and the world as well;
iv. It can create adequate demand for the company' products;
v. It makes possible to link many geographically separated markets;
vi. It ensures regular supply of goods even during the period of shortages, and hence, helps
to stabilize market prices;
vii. It is the main basis of economic and social development;
viii. It discourages monopoly and promotes healthy competition by bringing together the
products of various manufacturers in the market;
ix. It ensures regular supply of the required factors of production to the industries and final
products to the market, and hence, leads to specialization in production sector;
x. It promotes both agricultural and industrial development in the country;
xi. It develops sound political relations among the countries by developing social and
cultural linkages between the countries.
b) Price is the value placed on what is exchanged. It is measured in monetary terns. It is the
act of determining the exchange value between the purchasing power and satisfaction
derived through the purchase and consumption of products. Firms are having different
objectives, policies and methods of setting prices. So price is one of the important elements
of the marketing mix that produces revenue, the other element produce costs. In most case
price is set by negotiation between buyers and sellers. Organizations have to handle prices
very carefully.
In going rate pricing, the company bases its price mainly on competitors prices. It is
competition oriented, so the company may fix same, more or less price than that of
competitors. It is useful mainly for homogeneous products. The smaller organizations
follow the leader. This method is popular as it is easy and useful where costs are difficult to
measure or competitive response is uncertain.
a) E-commerce
b) Sales force promotion tools
c) Labeling
d) Display advertising
e) Relationship marketing
Answer:
a) Electronic commerce, commonly known as e-commerce, is a type of marketing where buying
and selling of product or service is conducted over electronic systems such as the Internet
and other computer networks. Electronic commerce draws on technologies such as mobile
commerce, electronic funds transfer, supply chain management, Internet marketing, online
transaction processing, electronic data interchange (EDI), inventory management systems,
and automated data collection systems. Modern electronic commerce typically uses
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the World Wide Web although it may encompass a wider range of technologies such as e-
mail, mobile devices, social media, and telephones as well.
Electronic commerce also consists of the exchange of data to facilitate the financing and
payment aspects of business transactions.
b) Sales Force Promotion Tools are important for sales promotion. Sales force indicates the
sales staff appointed by the manufacturers to sell manufactured products to the resellers and
customers through personal selling. They establish direct contact with the customers,
motivate them and sell the manufactured products.
Effective sales through sales force are possible when they are motivated. Dissatisfied sales
force cannot motivate the customers. Therefore, manufacturer offer sales promotion tools
directed at the sales force. Some of the sales promotion tools directed at the sales force are as
follows:
i. Sales Contest
ii. Bonus and Commission
iii. Promotional Kits
iv. Gift Items
v. Trade Shows and Conventions
c) Label is an important feature of a product. Every physical product must carry a label, which
may be a simple tag attached to the product or an elaborately designed graphic that is part of
the package. Labels perform several functions. First, the label identifies the product or brand.
The label might also grade the product, the way vegetables are graded A, B, and C. The label
might describe the product: who made it, where it was made, when it was made, what it
contains, how it is to be used, and how to use it safely. Finally, the label might promote the
product through attractive graphics.
d) Display advertising is a Media of advertising. Under this media, goods are displayed
beautifully to assist the salesmen. It can attract the attention of the prospects and arouse their
interests. In this type of advertising, goods and the like are properly displayed in shops,
windows, fairs and exhibitions, walls, sky, electric signs etc.
Handicraft products, fashion products, and other most commonly used products are generally
displayed in the windows to attract the tourists. Some marketers arrange their store with
lighting and beautiful colors. These days' electric signs are getting popular. Electric signs can
be large permanent sign installed at the main centers of the city. They are built of steel
beams, metal sheets, plastics using bright and flashlights, animation movies, neon signs.
During the nighttime they look beautiful and attractive. Name and shape of the products are
attractively displayed in larger shape to attract the attention of the viewers.
e) Relationship marketing has the aim of building long-term relations with key parties such as,
suppliers, distributors. In return, company earns profit. It is concerned with building an
effective network of relationships with key stakeholders. Sellers offer quality products and
services for greater satisfaction of their customer at a fair price in proper time.
The relevance of relationship marketing is clear from the following facts:
- Cuts down transaction cost and time.
- Builds effective marketing network.
- Develops mutually profitable business relationship.
- Increases company profit, etc.
This new philosophy is getting popularity in the field of marketing.
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Suggested Answers of Business Communication and Marketing
CAP II Examination- December 2012
Section -'A'
1. Read the following case carefully and answer the questions given below: 10
Imagine that you are the Secretary of the CA Association and the latter is planning to hire three Researchers to conduct some
research studies. You have been given the responsibility to conduct the final interview of the ten short-listed candidates.
While interviewing one of the candidates, the door was not closed properly and your mobile phone rang with a loud ring
tone. While making an attempt to turn it off you forgot the question you were about to ask. Also, as the door was open, you
could not hear properly what the candidate was speaking, as the talks among other candidates waiting in the lobby was too
loud. After the interview, the President of the organization called you for a meeting to discuss about the ten short-listed
candidates you interviewed to select the final three.
a) As an interviewer, you should have either switched off your mobile phone or kept it in silent mode. If you were the
candidate giving the interview, what things should you have done while being interviewed for employment?
b) Noise such as the mobile ring and talks among other candidates are some of the common barriers to communication.
What other barriers could affect the interpersonal communication between you and the candidate?
c) What do you understand by information and analytical report? In your meeting with the President, what information
will include in the report?
Answer:
a) Don‟t talk too much during the interview.
-Listen carefully to what the interviewer is asking and do not interrupt the interviewer in the middle of the conversation.
-Dress appropriately and be careful with the body language (sitting postures, use of hands during communication).
-Be confident – gather necessary information about the organization before interview
b) Barriers to the communication between interviewer and interviewee:

-The use of jargon, over-complicated or unfamiliar terms.
-Differences in perception and viewpoint.
-Language differences and the difficulty in understanding unfamiliar accents.
-Expectations and prejudices which may lead to false assumptions or stereotyping. People often want to hear what they
expect to hear rather than what is actually said and jump to incorrect conclusions.
-Cultural differences. lying between and among the interlocutors.
c)
-Informational reports: The reports, which contain functional information with regard to a specific business activity, data,
facts, feedback, and other types of information, are called informational reports.
-Analytical reports: The reports which contain interpretations, analysis and comments of the report writer are called analytical
report. These offer both information and analysis, and they can also include recommendations.
-Information to be included:
-Background of the interview, number of applicants, details of all short-listed candidates for final interview, their strengths
and weaknesses, the points each of them have scored, suggestions on who should be selected and why.
2. What are the most significant barriers to interpersonal communication? Use examples to elaborate your points
wherever possible. 10
Answer:
You can improve your chances of communicating successfully by learning to recognize barriers that are known to disrupt the
process. The most significant barriers for individuals are bypassing, differing frames of reference, lack of language skill, and
distractions.
Bypassing. One of the major barriers to disrupt communication involves words. Each of us attaches a little bundle of
meanings to every word, and these meanings are not always similar. Bypassing happens when people miss each other with
their meanings. Let‟s say your boss asks you to “help” with a large customer mailing. When you arrive to do your share, you
learn that you are expected to do the whole mailing yourself. You and your boss attached different meanings to the word help
. Bypassing can lead to major miscommunication because people assume that meanings are contained in words. Actually,
meanings are in people. For communication to be successful, the receiver and sender must attach the same symbolic
meanings to their words. A recent study revealed a high likelihood of miscommunication when people use common but
vague words such as probably, always, never, usually, often, soon, and right away. What do the words really mean?
Differing Frames of Reference. Another barrier to disrupt communication is your frame of reference . Everything you see
and feel in the world is translated through your individual frame of reference. Your unique frame is formed by a combination
of your experiences, education, culture, expectations, personality, and other elements. As a result, you bring your own biases
2015
Suggested Answers – Business Communication and Marketing
CAP II Examination – December 2012
and expectations to any communication situation. Because your frame of reference is different from everyone else‟s, you will
never see things exactly as others do. American managers eager to reach an agreement with a Chinese parts supplier, for
example, were disappointed with the slow negotiations process. The Chinese managers, on the other hand, were pleased that
so much time had been taken to build personal relationships with the American managers. Wise business communicators
strive to prevent miscommunication by being alert to both their own frames of reference and those of others.
Lack of Language Skill. No matter how extraordinary the idea, it won‟t be understood or fully appreciated unless the
communicators involved have good language skills. Each individual needs an adequate vocabulary, a command of basic
punctuation and grammar, and skill in written and oral expression. Moreover, poor listening skills can prevent us from
hearing oral messages clearly and thus responding properly.
Distractions. Other barriers include emotional interference, physical distractions, and digital interruptions. Shaping an
intelligent message is difficult when one is feeling joy, fear, resentment, hostility, sadness, or some other strong emotion. To
reduce the influence of emotions on communication, both senders and receivers should focus on the content of the message
and try to remain objective. Physical distractions such as faulty acoustics, noisy surroundings, or a poor cell phone
connection can disrupt oral communication. Similarly, sloppy appearance, poor printing, careless formatting, and
typographical or spelling errors can disrupt written messages. What‟s more, technology doesn‟t seem to be helping.
Knowledge workers are increasingly distracted by multitasking, digital and information overload, conflicting demands, and
being constantly available digitally. Clear communication requires focusing on what is important and shutting out
interruptions.
3. Conflicts within an organization need to be settled as early as possible. Suggest five specific ways of conflict
resolution within a business organization. 10
Answer:
Conflicts are very obvious features of organizational management. These are the result of various aspects such as
misunderstanding, egos, etc. If the conflicts are not managed properly they can harm the organization very badly. However, if
the conflicts are carefully managed they are more advantageous rather than harmful. They have positive results too. So,
instead of lingering them they need to be settled as early as possible. For this, very careful and appropriate strategies that fit
the given context are required to be adopted. Some of the specific ways of conflict resolution are:
 Proaction: Addressing minor conflicts before they become serious.

 Communication: Bringing the conflicting parties to a negotiating table to discuss the issues.
 Research: Identify the factual reasons of the conflict.
 Flexibility: Create a flexible environment for free and open discussion.
 Fair Play: Encourage everyone to work out a fair solution to the problem.
4. In the international scene, knowing and identifying cultural differences can make a big difference between
successful business negotiations and humiliating rejections. Elaborate. What are some of the effective international business
communication guidelines? 10
Answer:
International business communication plays a major role in this, as knowing how to communicate through their point of view
is a great advantage. Each country has their own way of saying things, what may not be offending to you may be offending to
them. International business communication is all about knowing the important thing that lies behind peoples‟ words in the
international arena. International business communication is communicating across cultures and the first thing you must
always put in mind is the basic understanding that one size doesn‟t fit all. Always putting in mind that the cultural practices
or habits you have does not mean that everyone else around the globe does.
The most important and worrying variables in the international scene of business are the cultural differences that most
international business executives fail to comprehend resulting in most international business slip-ups. The failure to identify
and adapt to these differences through effective international business communication can mean the difference between a
closed deal and a faceless failure. Assuming cultures affect the way people communicate with each other and language above
all else, is the core of culture.
Culture is the different ways in which people behave, act, or think towards themselves, families, and other people in the
society. It includes customs connected with social, political, family, and religious values. Different cultures have deviating
values for time and its use, for personal space, and for family values and chats. These differences must be identified and
recognized to bridge the gaps between cultures and for real communication to take place.
Learning effective international business communication is communicating across cultures, and it takes great sensitivity and
awareness by studying cultures and becoming more perceptive and adaptable in communication efforts.
Some of the effective international business communication guidelines that may help you are:
Listening with an open mind
Communicating across cultures is all about putting aside personal feelings and listening deeply to the person talking. Develop
your listening skills and learn how to hold your tongue. Knowing your own culture and the others culture as well will give

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you a better chance of bridging the differences. Keeping an open mind and sensitivity to these differences is a key factor for
better communication.
Non-verbal and Verbal behavior
Every language had their own linguistic preferences, and these preferences will give clues about those particular cultures
behavior, manners, and thinking. The English use modesty and understatement, and are sometimes purposely unclear to avoid
confrontation and very polite. Eloquence, expressiveness, and flowery of words are most common among Italians and
Spaniards, Germans on the other hand are very logical in manner. Knowing what people mean when they say yes is very
important; it may mean yes, I understand but not yes, I agree.
Gestures
Gestures involves sensitivity and awareness, as gestures that are not offending to you might be very offending to the other, as
in the case of beckoning someone to come over, some would hold out their hand with the palm up and then move the fingers
gesturing the person to come. In Asian culture however, this gesture is considered rude. To gesture someone to come in
Asian culture should be done with the palm facing

a) Conducting an effective presentation
b) A resume
c) Advantages of conflict in team
d) Analyzing data for reports
e) Merits and demerits of grapevine form of communication
Answer:
a) Conducting an Effective Presentation.
Before conducting a presentation, you should always prepare a backup plan. Make an extra copy of your work for backup and
print your speaking notes. Use colour highlighters to mark the key words on the notes. This will help you keep your place as
you speak.
If you have a complex presentation with different multimedia, practise ahead of time. Produce extra copies of the handout
materials. Check out the room ahead of time, and make sure it has everything you need. When presenting your work, use the
following guidelines:
i) Be sure to introduce yourself and any co-presenters to your audience.
ii) Speak slowly and clearly!
iii) Familiarise the audience with a background explanation of your study.
iv) Proceed in a logical manner, telling what you did step by step.
v) Point to graphs, charts, etc., when you refer to them.
vi) Give credit to those whom you have contacted and to those who have helped you.
vii) When you finish speaking, ask the audience if there are any questions they would like to ask.
viii) Make sure that the questions have been addressed and thank the audience for any suggestions.
ix) Thank the audience for attending.
b) Resume
Resume is also known as bio-data. It is the formal arrangement of an individual‟s personal details. It is prepared in a given
pattern. Generally, it includes personal details, academic qualification, work experience, training, awards, etc. The resume
should be as impressive and persuasive as possible so that the employer could be convinced to offer a job to the presenter.
The resume is found in various formats. However, the purpose and the contents are almost similar. It includes systematically
personal details and its main purpose is to convince the employer for job.
c) Advantages of conflict in team

Conflict is a normal part of every workplace and every team. Although the word alone is enough to make our heart begin to
thump, conflict is not always negative. When managed properly, conflict can improve decision making, clarify values,
increase group cohesiveness, stimulate creativity, decrease tensions, and undermine dissatisfaction. Unresolved conflict,
however, can destroy productivity and seriously reduce morale.
d) Analyzing data for reports

Analysis and interpretation of the data is an important phase of preparing report and thesis from a study, or a survey, or a
research. When the data are collected from various sources by using various primary and secondary tools, these data are to be
processed and analyzed. Through the analysis and interpretation of data we can prepare the report with convincing findings
and recommendations. The data analysis procedures also vary significantly according to the nature of the study and report.
Generally, the data can be analyzed by using different statistical tools, scales and figures. We can use percentage, mean,
median, standard deviation and other statistical tools and test scores for the analysis of data. The tables, diagrams and figures
are obviously used. From such analysis comparison, correlation can be explicitly shown.
e) Merits and demerits of the grapevine form of communication:

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Merits
- Speedy transmission: It transmits information very speedily.
- Feedback value: The managers or top bosses of an organisation get the feedback regarding their policies, decisions
memos etc. Feedback reaches much faster.
- Support to other channels: It is a supplementary or parallel channel of communication
- Psychological satisfaction: It gives immense psychological satisfaction to the workers and strengthens their solidartiy,
demerits
- It is less credible. It cannot always be taken seriously.
- It does not always carry the complete information.
- If often distorts the picture or often misinforms.
Section -'B'
Wheel, a product of Uniliver, is a detergent that caters to the needs of the mass market. It was first launched by Hindustan
Lever in 1987 in India. Wheel Green is the single largest selling detergent brand in Nepal by value. Wheel is packed with
powerful Lather that cleans even the toughest stains on collars and cuffs with case. It cleans effectively with lesser effort,
making washing light and easy. Moreover, Wheel does contain a high percentage of soda.
Wheel also has a premium variant called „Active Wheel‟. It gives consumers the value of three benefits in one. It not only
cleans effectively with less effort but also keeps the colored clothes looking bright and has a fresh fragrance. Active Wheel
gives consumers “quality clean and care” at an affordable price. Involvement of lesser number of middlemen, limited
distribution outlets and weak promotion base has adversely affected its desired level of sales and profit.
In short, Wheel can be summed up as –“Mehenat Kam, dhulai No. 1”. Wheel is, therefore, the smart housewife‟s choice.
Questions:
a) Make a short analysis of the case and describe product attributes of Wheel. 5
b) Give suggestions to Uniliver Ltd. for improving the performance of Active Wheel. 5
Answer
a) Wheel, a product of unilever is found very popular in Nepal. Many people liked wheel for their laundry needs as it
has many good qualities. It is treated as less harmful to hands and comparatively of greater quality and economical. It has
good prospect in Nepalese market. Clear with less efforts, product compositions and good results are its notable features due
to which it is preferred by many people.
Major attributes of wheel detergent are: cleans efficiently with lesser effort, does not burn hands or harm clothes, many
benefits in one-makes clothes bright, fresh fragrance, affordable price, etc.
b) The above attributes have made wheel a popular detergent units less effort and good results. In other words
(mehanat kam dhulai No.1) wheel has several good features leading to be highly – demanded product. Washes clothes clean
and customer care at a reasonable price. Unilever has to increase number of middlemen, improve its promotional base by
using new advertising, publicity, sales promotion strategy so that it can expand more market to improve the performance of
Active Wheel.
7.
a) Define marketing. Explain the importance of marketing to the society. 5
b) Explain the fundamental principles of societal marketing. 5
Answer
a) A few definition of marketing are as under:
Stantion, Etzen and walker have difined:
“Marketing is a total sysyem of business activities designed to plan, price, promote and distribute want –satisfying products
to target markets to active organizational objectives”
Philip Katter:
“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 and others.”
From the above definitions we can define marketing as a societal process and all activities to create exchange relationships
for customer need fulfillment and achieve organizational goals in the given environment. So all the activities directed in the
flow of good and services from producer to consumer, come under marketing.
b) The societal marketing concept assumes that along with the consumers' wants and interests, social interests too
should be considered so that long-run social welfare could be maintained. The underlying premises of the societal marketing
concept are:
i. society's long-run interests;
ii. Consumers will increasingly favor an organization which shows a concern with meeting their wants, long-run
interests, and society's long run interests;
The ultimate goal of marketing should be to achieve organizational through social goods welfare and well being.
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8.
a) What makes the market segmentation meaningful and effective? Explain. 5
b) What do you understand by Marketing Information System (MIS)? Explain marketing research as a major part of MIS.
5
Answer
Market segmentation is the process of dividing large, heterogeneous (dissimilar) markets into smaller, homogeneous (similar)
sub-markets. In other words, market segmentation is the process by which an organization attempts to match a total
marketing program to the unique needs of one or more customer groups in the marketplace.
The basic objective of segmenting a market involves improving competency, sales volume, and profitability of the
organization. To achieve this objective market segmentation must be effective and meaningful. In order to make market
segmentation effective and meaningful the following conditions or must be fulfilled or followed.
 There should be similarities in customer characteristics
in Each Segment
 Customer Differences should be Measurable or Identifiable
 Segments should be Accessible or Reachable
 Segments should be large Enough
 Segments should be sufficiently Stable
a) Marketing information system (MIS) is an on-going process consisting of people and equipments, to generate, sort,
analyze, evaluate and distribute needed accurate information in time for use in marketing decision marketing.
Organizations need to design and use an effective MIS to gather information and manage its continued flow to support in
achieving marketing objectives. It consists of input →processing →output →feedback components. Use of information
technology especially the computer and internet play an important role in MIS.
Marketing research system is an important component of MIS. Marketing research is a systematic and objective study of
problems pertaining to the marketing of goods and services. Marketing research is done to provide information to
management so that it can identify to react to marketing opportunities and problems. It also provides the required, reliable
and timely information for making marketing decisions to managers. Most large companies have their own marketing
research department. So marketing research specifics the information required, collecting information, analyzing the results
and communicating the findings. As such marketing research is very valuable to MIS.
9.
a) Point out the new product development process and explain test marketing. 5
b) What is physical distribution? Explain the contributions of physical distribution system in marketing. (2+3=5)
Answer
a) Stages in new product development are as fellows:
- Idea generation
- Idea screening
- Concept dev. & testing
- Marketing strategy and business analysis
- Product development
- Test marketing and
- Commercialization.
Test marketing:
Product is manufactured in small volume for test marketing. With a view to see consumer response on product it is placed on
sale in a test market. It is send with brand name, packaging and all other procedures followed at a limited scale.
Test market helps to correct/ improve the marketing mix. Is a product's test market is ok, its goes to final stage of
commercialization. At this stage trial, first repeat, adoption and purchase frequency are monitored.
b) Physical distribution is concerned with the management of physical flow of goods from the points of suppliers to
the points of purchasers.
The main objective of physical distribution is getting the right products safely to the right places at the right time at the least
possible cost.
The main contributions of physical distribution system are as follows:
a. It provides customer service by managing transportation, warehousing whenever and wherever required;
b. It distributes goods more safely at right time by selecting the proper means of transportation and physical handling.
c. It minimizes the total cost by selecting the right channel, transportation system and proper materials handling
technique; and
d. It supplies goods to the right target market by delivering the desired goods to target customers.
e. It fulfills customers‟ needs and provides them satisfaction because the actual movement and delivery of goods is
possible only through the physical distribution system.

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a) E-marketing
b) Marketing environment in Nepal
c) Stages of consumer buying process
d) Mark-up pricing method
e) Branding
Answer
a) E-marketing
E-marketing describes a wide variety of electronic services used in marketing. Purchase of goods and selling are both done
through electronic media under E-marketing. Direct markets use media to make direct offers to potential buyers. Besides
other electronic data interchange through the use of fax, e-mail, use of ATM and the use of internet and online services are
gaining popularity. The internet today functions as an information source, an entertainment source, a communication
channel, a transaction and distribution channel. Any one having internet service cam send e-mail, exchange views, shop for
produces, access news, and exchange business information. So internet provides marketing opportunities which come under
E-marketing.
b) Nepal is a small landlocked Himalayan country situated at the heart of Asia. It is situated between India in the west,
south and east and the Tibet Autonomous Region of China in the north. Nepal has a multi-party system.
The major environmental forces that have impact on Nepalese market and trade pattern are economic environment,
demographic environment, political-legal environment, technological environment, natural environment, and competitive
environment.
Nepal is an agrarian country. Contribution of agriculture sector to the country‟s real GDP and employment is high. Farming
is still highly labour-intensive.
Recently, marketing opportunities for services sectors like computer software, insurance, banking, education, hospitals and
nursing homes have been growing rapidly.
The demographic character of Nepal shows that the market structure of the country is diverse in nature.
Nepal is a labour-abundant country. Labour is comparatively cheap in Nepal. Industrial development has not taken proper
direction in Nepal, so the use of appropriate technology is still shy. Rural farming is still characterized by traditional local
technology.
New innovations are lacking in Nepal. Almost all the technologies transferred into Nepal are “me too” type of technology
i.e., “imitating” one. Recently, information technology has been gaining momentum in the country in commercial sector.
For the last several years, Nepal has been badly affected by political unrest in the country, which has multiplier effects on the
country‟s economic and social development.
c) Consumer behavior is concerned with the study of consumers‟ activities and actions relating to the selection,
purchase and consumption of goods.
Though there is no hard and fast rule regarding the compulsion to follow up a rigid buying decision process, a rational
consumer usually follows.
buying process of five steps:
 Need recognition
 Information search
 Evaluation of alternatives
 Purchase decision
 Post purchase evaluation
d) Mark-up pricing
Price is the value paid on what is exchanged and measured in monetary units. It is the act of determining the exchange value
between the purchasing power and utility or satisfaction derived though the purchase of products.
Companies are having different objectives, policies and methods of setting prices their products. Out of many commonly
used methods of pricing is cost oriented pricing. Mark-up pricing method is to add a standard mark-up to the product cost.
It per unit cost is Rs.80 and 25 percent mark up then manufacture will charge Rs 100 for the product.
e) Branding
Branding is the art and cornerstone of marketing. A brand is a name, term, sign, symbol or design or a combination of them,
intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.
So, a brand identifies the producer or seller. A brand can be better positioned by associating its name with a desirable benefit.
Companies promote their brand for different purposes depending upon what they want to prefer quality, performance, safety,
adventure, emotion, etc. So, a brand is essentially a marketer‟s promise to deliver a specific set of features, benefits and
services to the buyers. Brands are legally protected and superior to trade marks. A good brand name requires all such
qualities. Brand names differ with the company. Today, branding is such a strong force that hardly anything goes unbranded.

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CAP-II, BC, June 2012
Suggested Answer
Maximum Marks – 100
Marks
Section -'A'
Staying tuned in to a customer‘s concerns is the number one focus of proposal

writers at Hewlett-Packard. A proposal today, especially in a global environment,
involves more than merely supplying a product. Mary Piecewicz, at Hewlett-
Packard, says, ―It‘s more like a marriage between two companies. Before we can
write a proposal, we need to be detectives and learn as much as possible about
the potential partner.‖ HP begins searching for information. From the customer‘s
annual report, news release, industry reports, and other sources, HP detectives
search for specifics about its products, strategies, and company culture. What hot
buttons is the company likely to respond to?
In organizing proposals, HP always responds to the customer‘s outline. If the
customer doesn‘t specify a plan, proposals are arranged as follows: Section 1
includes the executive summary, which is the most important part of the
proposal. It spotlights the hot buttons and the proposal criteria set forth in the
request for proposal (RFP). Section 2 covers specifications and technical
descriptions. Section 3 lists costs, terms, and conditions. Section 4 presents
supplemental literature, including generic resume and staff qualifications.
Authorization to proceed is usually discussed after receipt of the proposal. In this
way customers are able to negotiate the formal agreement with the sales account
manager.
Because of its importance, the executive summary gets special attention. It may
open with a brief history of HP, but its primary focus is on the customer‘s needs.
―We address every customer issue and specify our 'differentiators',‖ explains
Piecewicz. ―What makes HP stand out from our competitors? The executive
summary is really the selling tool in our proposals, and we spend the most time
on it.‖
Issues for Critical Thinking: 10

a) Why is it important to become a ―detective‖ before beginning to write a
proposal?
b) If Hewlett-Packard were preparing a proposal for a company, Fortune 500,
what kinds of information and where should the proposal team investigate?
Where could it find such information?
c) What is the most important part of an HP proposal, and what should it
include?
Answer No. 1
a) Writing a proposal demands a considerable ―detective‖ work. It is because a proposal
writer needs to collect considerable amount of information from the customer. Unless
the writer makes sure that s/he has understood the customer‘s problem well, the proposal
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cannot be persuasive, and hence it is not accepted. Since no customer wants to reveal its
internal information to the public, it is inaccessible to the proposal writer too. Therefore,
a report writer must research all the significant areas to learn all it can about the
customers.
b) HP team needs to collect information from such areas as a customer‘s corporate culture,
degree of environmental consciousness, current business strategies, and how Fortune
500 serves its customers. (examinees need to explain these points in brief)
c) The most important part of an HP proposal, as its member Piecewicz explains, is its
executive summary. Opening with a brief history of HP, it will mainly focus on the
customer‘s need. Besides, it should include proposal highlights that comprise summary
of objectives to be met and procedures to be followed. In fact, the executive summary
should speak for the complete proposal, it should be able to stand alone. Budget figures
are frequently omitted because proposal abstracts may receive wide distribution.
2. Discuss in brief the concept of ‗diversity in the workplace‘? How are the
problems caused by workplace diversity settled? 10
Answer No. 2
The term ‗diversity in the workplace‘ refers to the situation where workers may vary
because of many variables such as gender, culture, nationality, religion, ability, ideology,
etc. In the cross-cultural and global context of the world, the work places have been
characterized with diversity. The work place diversity may invite a number of problems
related to the characteristics of the workers with different races, cultures and genders.
Misunderstanding may take place because of diverse situations. The success of the
organization may have a lot of challenges when conflict rises among the diverse workers.
The lack of cooperation and emotional support may also result from work place diversity. In
such condition where there is work place diversity, it can be managed quite trickily and
wisely. The increasing diversity of workplace should be understood as an organizational
asset with multiple opportunities and potentials. The problems caused by the diversity can
be settled with efforts such as the following:
 Conduct a diversity audit in organizations to find the most effective program for
your needs.
 Design increasing meetings, useful for all.
 Build cohesive multi-cultural work teams.
 Create a corporate culture that can accommodate diversity to maximize the potential
of your workforce
3. How can you as a participant involve actively and productively in a meeting? 10
Answer No. 3
Meetings are opportunities for you to showcase your abilities and boost your career. To get the most
out of the meetings you attend, try these techniques:
 Arrive early. You show respect and look well organized by arriving a little early.
 Come prepared. Bring the agenda and any distributed materials. Study the topics and be ready
with questions, comments, and good ideas.
 Have a positive attitude. Use positive body language; speak energetically.
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 Contribute respectfully. Wait for your turn to speak; raise your hand to be recognized.
 Wait for others to finish. Show respect and good manners by not interrupting.
 Keep your voice calm and pleasant, yet energetic. Avoid showing anger as this focuses
attention on your behavior rather than on your ideas.
 Give credit to others. Gain allies and enhance your credibility by recognizing others in front of
peers and superiors.
 Put the cell phone and laptop away. Focus your attention on the meeting, not on answering e-
mails or working on your computer.
 Help summarize. Assist the meeting leader by reviewing points you have noted.
 Express your views in the meeting. Build trust by not holding postmeeting ―sidebars‖ that
involve criticism and judgments.
 Follow up. Send the signal that you are efficient and caring by completing the actions assigned
to you.
4. Describe a situation in which you exhibited outstanding listening behavior and

capabilities. How did they influence the speaker‘s subsequent communication
attitude and behavior? 10
Answer No. 4
Listening may be defined as the ability to understand and respond effectively to the speaker
(sender) during oral (face-to-face) communication. Though listening and hearing sound alike, they
are different in organizational communication context. While listening perceives the contents of
what is said, hearing just perceives sound without paying any attention to what is said. The latter
does not involve any response or feedback.
Listening is one of the most fundamental skills of human communication activities that idealize
interpersonal human relations through sharing and exchange of information. Listening involves
sensing. Listening is always a participatory approach to effective communication. Most of the
evidences show that the receptive side of listening is more crucial and causes more problems than
transmitting messages for others to understand them. Poor listening is the major cause of
miscommunication. Improving listening ability is the major challenge for better communication
Listening is the most important of all communication skills. The listening process takes place in
four stages: perception, interpretation, evaluation and action. Listening, the most basic quality of
human communication, is an act of sharing and exchange of ideas, experiences and opinions. The
best way to understand people is to listen to them properly. So listening remains to be the most
prominent and structured procedure of communication that broadly consists of methodological
procedures like sensing, interpreting, evaluating, remember and responding. Ninety percent of the
organizational problems are caused due to misleading and misrepresentation resulting from
listening problems. The same piece of message conveyed by the speaker may be subjected to both
hearing and listening. Sometimes, a piece of message is just heard, if it is considered less important.
It also depends upon how the listener reacts to it. Other things remaining the same, a good manager
is required to be a good listener in order to be a good speaker.
Listening involves filtering – a process of decoding the message to get the meaning through mental
verification. It depends upon our knowledge, beliefs, biases and experiences. To elaborate, listening
involves:
Sensing: As a member of a management organization, Mr. Y, a typically good listener gains

adequate amount of listening skills and feels confident that his other communication skills depend.
In the process of developing listening skills, he first considers sensing things by perception.
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Interpretation: He focuses on interpretation as the deliberate process to have explanations,

illustrations and establish proper understanding. This is followed by a process of finding logic and
evidence. Every good listener is required to have proper analytical skills to prepare proper logic and
evidence, classification and sub-classification of ideas and argumentative habits.
Remembering: He considers remembering as the process of internationalizing information before it

is communicated to the listeners. In short, it is the quality of retaining in mind what has been
received (listened to). Various factors determine our capacity to remember things. Some people
have photographic memory and can reproduce past information.
Responding: Responding is the final stage of human communication process in which the listeners
reproduce replies or respond to the speaker on the specific state of affairs, i.e. queries made by the
speaker. The responses reflect the listeners‘ reactions to various aspects of the message. They could
be positive and negative and confused understanding.
Listening as a process of communication could be best understood as a set of the following ten
commandments.
The Ten Commandments of Listening:

1. Develop positive thinking attitude towards speakers.
2. Question and counter question for the appropriate compressions.
3. Raise the speaker in status of role model.
4. Listen to concepts, key ideas and facts.
5. Listen attentively and patiently.
6. Put the speaker at ease .
7. Be patient.
8. Judge content, not the appearances or habits of the speaker.
9. Keep an open mind when confronted with temperamental influences.
10. Apply the standard of mind filter.

a) Communication process
b) Active listening techniques
c) Benefits and challenges of workforce diversity
d) Techniques of closing the interview
e) Informational reports
Answer No. 5
a) Communication process
 The sender encodes (selects) words or symbols to express an idea. The message is sent verbally
over a channel (such as an e-mail, letter, or telephone call) or is expressed nonverbally, perhaps
with gestures or body language. ―Noise―—such as loud sounds, misspelled words, or other
distractions—may interfere with the transmission. The receiver decodes (interprets) the message
and attempts to make sense of it. The receiver responds with feedback, informing the sender of
the effectiveness of the message. The objective of communication is the transmission of
meaning so that a receiver understands a message as intended by the sender.
b) Active Listening Techniques
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 Experts say that we listen at only 25 percent efficiency. While listening to superiors on the job,
take selective notes, avoid interrupting, ask pertinent questions, and paraphrase what you hear.
When listening to colleagues and teammates, listen critically to recognize facts and listen
discriminately to identify main ideas and to understand logical arguments. When listening to
customers, defer judgment, pay attention to content rather than form, listen completely, control
emotions, give affirming statements, and invite additional comments. Keys to building powerful
listening skills include controlling external and internal distractions, becoming actively
involved, separating facts from opinions, identifying important facts, refraining from
interrupting, asking clarifying questions, paraphrasing, taking advantage of lag time, taking
notes to ensure retention, and being aware of gender differences.
c) Benefits and challenges of workforce diversity
 Having a diverse workforce can benefit consumers, work teams, and business organizations.
However, diversity can also cause divisiveness among identity groups. Business communicators
should be aware of and sensitive to differences in the communication techniques of men and
women. To promote harmony and communication in diverse workplaces, many organizations
develop diversity training programs. You must understand and accept the value of differences.
Don‘t expect conformity, and create zero tolerance for bias and prejudice. Learn about your
cultural self, make fewer assumptions, and seek common ground when disagreements arise.
d) Techniques of closing the interview
 Once the interview nears conclusion, start thinking about how to end on a positive note. It is
easy to become flustered after a challenging interview, so be sure to practice questions that you
plan to ask. Also, focus on how to leave a lasting positive impression.
 Asking your own questions: Be prepared with meaningful, thoughtful questions to help you
determine whether this job is right for you.
 Ending the interview positively: Summarize your strongest qualifications, show your
enthusiasm for the job, and thank the interviewer. Ask for the interviewer‘s business card.
Shake hands, and acknowledge anyone else on the way out.
e) Informational reports
 Periodic, trip, convention, progress, and investigative reports are examples of typical
informational reports. Such reports include an introduction that may preview the report purpose
and supply background data if necessary. The body of the report is generally divided into three
to five segments that may be organized by time, component, importance, criteria, or convention.
The body should include clear headings and may use an informal, conversational style unless
the audience expects a more formal tone. The summary or conclusion reviews the main points
and discusses the action that will follow. The conclusion may offer a final thought, express
appreciation, or signal a willingness to provide further information. Like all professional
business documents, a clear, concise, well-written report cements the writer‘s credibility with
the audience.
CAP-II, Marketing, June 2012

Suggested Answer
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Section -'B'
Dell computers sold personal computers directly to end users while most other
computer manufacturers sold their products through distributors and resellers.
Selling direct first started through telephone then via internet. Dell‘s direct
distribution enabled customers, especially corporate customers, to express what
features they wanted in computers. Dell then quickly assembled the components
and shipped them to the target customers. Dell became very popular among
computer buyers since they can get computers exactly in the shape, size and
functions they desired. Moreover, the price-value offer of Dell was unbeatable.
Customers got computers at almost the same price as other brands with their
own specializations. In addition, the waiting time for computers was cut down
to minimum. This strategy gave the company a competitive edge in the
computer market. In order to maximize the customer services and minimize
distribution costs, the company worked very closely with local suppliers of
spare parts and customer service providers. When the business expanded, the
company was forced to add local distributors in the channels. The costs were cut
down by keeping 15 days inventory of parts and components while the major
competitors were keeping inventory for 65 days.
Questions:
a) Analyse Dell‘s distribution strategy to get the competitive edge. 5
b) Can Dell‘s distribution strategy be applied in marketing of other consumer
durables like refrigerators and TV sets? Give reasons for your answer. 5
Answer No. 6
a) Dell‘s distribution strategy considers:
 Market profile: size, competitors, stage of product life cycle

 Customer segments: groups of prospects with similar wants & needs
 Competitive analysis: strengths, weaknesses, opportunities and threats in the landscape
 Value proposition: the type of value to the delivered to the market
 Positioning strategy: position of offering to win mindshare
Dell has experienced astounding growth over the last several years. Dell‘s competitive edge
comes from
(1) Just in Time purchasing of components

(2) Lower inventory costs (avoiding carrying and inventory costs)
(3) Low distribution channel related costs and markups.
b) Obviously, this distribution strategy can be applied in case of marketing of other consumer
durables like refrigerators and TV sets. In Today‘s consumer durables market, competitive
advantage is gained by offering superior user experiences to consumers. In order to provide
quick and timely delivery to their dealers, these consumer durables can also gain competitive
edge. Todays‘ market is hypercompetitive market that‘s why to remain long time in the
business, differentiation strategy is required. Todays‘ customers are value maximizers. They try
to obtain more value from limited resourcrs.
7.
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a) Define the term ‗marketing‘ and explain the fundamental principles of a

customer-oriented philosophy of marketing. (2+3=5)
b) Write a note on usefulness of relationship marketing. 5
Answer No. 7
a) Generally, by marketing we mean the selling and buying of goods and services. The seller sales
goods and services and, in return, he receives payment from the buyer in the form of money or
something else. But, actually, the concept of marketing is much broader than what the general
people think.
Some scholars define the term ‗marketing‘ as business activities, some define as business
processes, and some define as social process. However, it needs to be defined in simpler and
meaningful way as follow:
Marketing is a process of doing business by understanding the real needs and problems of
target customers, fulfilling their needs and solving their problems through integrating suitable
marketing tools, and expecting profits through customer satisfaction.
Actually, marketing is a customer-oriented philosophy of business. A customer-oriented
philosophy of business is a target market-oriented, integrated marketing, and profit-oriented
philosophy of business. A marketer following the customer-oriented philosophy of business
needs to follow the following four fundamental principles –
i. First of all, identify or select the target market.
ii. Secondly, identify and understand the real needs and problems of the target market.
iii. Thirdly, address such needs and problems by integrating and adopting the suitable
marketing tools, including right product, right price, right place of distribution, right
promotion tools, better service delivery process, better relations, and better physical
environment in the office premises.
iv. Last, but not the least, try to earn desired profit from the business after the customers are
satisfied with offers.
b) Usefulness of relationship marketing

Relationship marketing has the aim of building long-term relations with key parties-customers,
suppliers, distributors. In return, company earns profit. It is concerned with building an effective
network of relationships with key stakeholders. Sellers offer quality products and services for
greater satisfaction of their customers at a fair price in proper time.
So, relationship marketing is useful due to the following facts.
- Cuts down transaction cost and time.
- Building of effective marketing network.
- Mutually profitable business relationship.
- Competition between marketing networks.
- Increase in company profit.
8.
a) What is buyer behavior? How does individual buyer behavior affect buying
decision for a particular product? Explain. (2+3=5)
b) Highlight the importance of advertising to the marketers. 5

Answer No. 8
a) A buyer is anyone who might buy a given product. A buyer may be either an individual person
or an organization that have an interest in the product and the means to acquire it. Therefore, a
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buyer includes both individual and organization, which is potentially willing and able to buy
products offered by the marketer.
Various scholars have defined the term ‗buyer behavior‘ in different ways. However, by
buyer behavior refers to actions and activities of the people engaged in selecting, purchasing,
and using products and services to satisfy needs. Such activities involve mental and emotional
processes in addition to physical actions.
There are several factors affecting the individual‘s buying decision: psychological factor is
among them. Psychology is a state of one's mind which requires interpretive or insight
knowledge about the consumer.
While analyzing psychology of a consumer, a marketer must be able to analyze as to why a
person behaves as he does; what motivates him to behave in a particular manner; and what role,
attitude, personality and his own image play in influencing behavior:
Psychology of a person consists of several factors, which must be carefully analyzed by the
marketer. These factors include:
 Motivation
 Perception
 Learning
 Beliefs and attitudes
 Personality
b) Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or
service by an identified sponsor. It is a cost effective way to disseminate message to scattered
large masses. Advertising can be used for giving information, persuading consumers, reminding
and reassuring them to create demand.
Advertising today has got a prominent role in the promotion program of all firms/companies.
Media agencies are playing active role to meet advertising objectives of the companies. A lot of
people are involved in designing attractive advertising messages focusing on mission, message,
media and measurement elements known as the five Ms of advertising. Newspaper, journals,
posters, radio, TV, video are a few ad vehicles popularly used by the organizations.
The following points indicate the importance of advertising:
 Communication of information/message.
 Creation and extension of demand.
 Educate, persuade and remind customers.
 Influence buying decision.
 Save time and money etc.
 Achieve organizational goals.
 Image building.
 Help middle men
 Protection from competition etc.
9.
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a) What is a new product? Explain the process of new product development. (2+3=5)
b) Describe the environmental forces that affect the company‘s ability to serve
its customers. 5
Answer No. 9
a) By the term "new product", the general people think that it should be an innovative product,
which is developed and introduced in the marker for the first time. However, in marketing, a
new product has a wider meaning. For marketers a new product may be either an innovative
product, an imitation product, or a modified product.
A new product development process usually calls for the following six steps.
 Generation of new-product ideas: They are targeted at satisfaction of unmet needs of
customers.
 Screening and evaluation of product ideas: unfeasible ideas are eliminated.
 Concept development and testing
 Business analysis: It is done to evaluate product‘s business attractiveness.
 Product Development: Product concept is developed into physical product.
 Test marketing: Product is put on sale in a test market.
 Commercialization: Full scale production and marketing programmes are prepared.
b) The marketing environment is made up of a microenvironment and macroenvironment. The

company‘s microenvironment consists of actors close to the company that combine to form the
company‘s value delivery system or which affect its ability to serve its customers. This includes
the suppliers, marketing intermediaries, customers, competitors and public. The forces in
microenvironment directly influence whether and how a marketing manager can perform
marketing activities. It may affect a marketing manager‘s decisions and actions through their
influence on consumer‘s reactions toward the firm‘s marketing mix. The macroenvironment
consists of six larger societal forces that affect marketing. These include demographic,
economic, natural, technological, political-legal and socio-cultural forces. These forces shape
opportunities and pose threats to the company.

a) Marketing research process
b) Marketing mix
c) Features of packaging
d) Physical distribution
e) Personal selling
Answer No. 10
a) Marketing research is the systematic design, collection, analysis and reporting of data and
findings relevant to a specific marketing situation facing the company. In many large
companies a separate marketing research department is found. In order to solve various
organizational problems marketing research is very helpful. Its popularity and use is widely
accepted. The marketing research process involves the following steps:
- Define the problem and research objectives.

- Develop the research plan.
- Collect the information.
- Analysis the information.
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- Report the findings.

- Make the decision related to marketing problem.
b) Marketing mix is the combination of the four major components that comprise a company's
marketing program. Marketing mix is the core of marketing program.
Kotler defines marketing mix as "a set of marketing tools that the firm uses to pursue its marketing
objectives in the target market".
Similarly, Mc Carthy defines marketing mix as "the controllable variables, which the company puts
together to satisfy its target market".
Similarly, W. J. Stanton defines the term “marketing mix” as “the term used to describe the
combination of the four inputs which constitute the core of a company’s marketing system; the
product, the price structure, the promotional activities, and the distribution system”.
Altogether, seven elements or components of marketing mix have been identified, called as 7P‘s,
including four major components (product, price, place and promotion) and three supporting
components (process, people and physical evidence) for service products..
c) Packaging is one of the important parts of product. Most products have to be packed. It is
concerned with all the activities of designing and producing the container for a product. Well-
designed packages can create convenience and promotional value as such many marketers treat
packaging as the fifth P in the marketing mix.
The following features are found in a packaging system:
A good package must be convenient, attractive, communicative, economic and environment
friendly. In general packaging is done with a view to handle, carry, store, identify and promote
the product. Brand image results from good packaging system.
d) Physical distribution as a major part of market logistics constitutes about 25 percent of

product's cost. Today customers want frequent deliveries, short order cycle times, direct
delivery, careful handling of products in a coordinated manner with the help of IT. In a
competitive market physical distribution as a part of distribution system has ultimate goal to
meet customers' requirements is an effective and profitable manner.
There are many components of physical distributions like order processing, warehousing,
inventory management, material handling, transportation. They all are concerned with the
proper flow of goods and services from the production location to the point of consumption.
Marketing channel needs to the integrated with channel system to achieve the distribution
goals.
e) It is a process of informing customers and persuading them to purchase product
through personal communication. They are sales personnel who show
salesmanship to deal and handle customers. Sales force occupies a significant
role in marketing and promotion. Managing the sales force has become a
challenging task to big companies. Personal selling is personal communication
to inform and persuade target customers. Sales people are in direct contact with
the buyers so that they can overcome problems as well as convince and satisfy
the market. Sales people are also capable to attract new buyers and help to
introduce new products through indoor or outdoor sales process. Though
expensive and difficult, it is two way communication & less wasteful method of
promotion.
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CAP-II, Businesss Communication, Dec 2011

Suggested Answer
Maximum Marks –
100

Marks
Section -'A'
1. Read the following case carefully and answer the questions given below: 10
The CEO of the Siddhu Bank Ltd., with its head office based in Kathmandu,
has asked you, Senior Manager of the bank to write a reply to a group of
hard-working and devoted managers, who have frequently expressed their
dissatisfaction before the CEO that employees of some branches have to
work devotedly, whereas some in some other branches of the same office
spend their duty hours leisurely, gossiping and chit-chatting most of the
time. The complaint made argued that such a situation might have a negative
impact on the sincere and hard-working employees, ultimately resulting in
organizational ineffectiveness. Also they drew attention of the concerned
towards taking necessary measures.
Reply without concealing reality of the situation including the following:
a) That the top management of the bank is well aware of the situation.
b) That such a situation exists more or less in every organization, but it is
not good.
c) That decision has recently been taken to monitor and evaluate employee
performance of each and every section from the next month, and actions
would be taken against those who are negligent in their regular duties.
Answer No. 1
Jan 11, 2012
Siddhu Bank Limited

Babarmahal, Kathmandu
www.sidhu.org.np
014222133
Dear Managers,
We would, with serious concern, like to let you know that your complaint about the
lack of employee performance evaluation in the bank‟s operational system is justified to
some extent. The complaint clearly intends to hint upon negligence of top management
towards an absence of a fair and just employee evaluation system. Your suspicion
sounds reasonable to the extent that employees of some sections do not seem to be
working seriously and devotedly.
The reality of the situation is that disparity in staff performance exists in other
organizations also. This is a human factor and you would all realize that of all the
aspects of management, human resource management (HRM) is very crucial and
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challenging, because this is purely a subjective matter. But such an argument, however,
does not justify disparity in our organization. All the staff members of the organization
have to be equally performing better, ultimately contributing to organizational
effectiveness.
One thing, to the credit of the quality and excellence of your performance, your hard
work, devotion and dedication will pay off not only for your organization, but also for
honing up your own professional skills and performance effectiveness. Such a creative
activity should be taken as a stepping stone to career building.
For your information and satisfaction, the top management has recently taken decision
to regularly monitor and evaluate employee performance of all the sections to address
the problem with justice and impartiality. Departmental actions would be taken against
acts of negligence.
Rest assured that things will go well with the times.
On behalf of the top management,

Senior manager
Prakash Regmi
2. “Organizational communication cannot be complete and effective without

proper use of non-verbal communication”.
Justify this statement citing five different situations, in which organizational
people make the best use of non-verbal communication - cues, signs and
symbols, gestures, graphics, etc. to fulfill the intended communication need. 10
Answer No. 2
Non-verbal communication, entirely different from verbal communication, is employed in

particular circumstances in which the speaker remains incapable in communicating verbally,
or the speaker thinks that articulating something verbally might sound uneasy, impractical and
unethical. Non-verbal communication also applies to the style of directness and indirectness.
Indirect styles of non-verbal communication are used in circumstances in which the speaker is
poised to communicate matters (prohibited or inconvenient or unethical) indirectly.
There are lots of examples of situations in which verbal communication becomes inadequate,
inconvenient and non-verbal communication becomes indispensable.
Five different situations, in which organizational people make the best use of non-verbal
commutation – cues, signs and symbols, gestures, graphics, etc. to fulfill human
communication needs, are as follows:
Example No. 1.
During paper presentation, the director of an Insurance Company (ABC Insurance Company),
who intends to speak something in a Board meeting about the lingering corruption in the
organization he belongs to, cannot directly express the matter of corruption. At this, he is
obliged to use non-verbal communication. Wearing a reddish face, he rubs his palms together
to convey the message indirectly.
Example No 2.
Use of Signs: At offices and important public places “No smoking” message is transmitted
with a cross laid across a burning cigarette butt.
Example No. 3
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Someone wants to say good luck to a friend on his winning gold medal in a 200 meter race, but
he cannot do so because of the distance. Here, he holds his thumb upwards.
Example No 4.
Some villagers overtaken by a fear of vandalism created by a group of miscreants from a
neighboring village turn pale, wear frightened looks, and seem terrified, but afraid and unable
to speak anything. Their movements- the lowering of eyebrows, clenching of jaws and, labio-
dental contact (contact between lip and teeth) reflect their fear and anxiety.
Example No 5.
An angler in England will demonstrate the size of the fish he has caught by holding his two
hands, palms facing each other, but an angler from certain parts of Africa will measure off the
size along his left arm with his right hand.
3. Assume you didn‟t get the job. Although someone else was selected, you
hope that other jobs may become available. Write a 3-4 paragraph follow-up
letter that keeps the door open. Write in the „simplified letter style‟ format as
suggested in your textbook. 10
Answer No. 3
Prayag Marg
New Baneshwor, Kathmandu
July 23, 2011
Mr. Akhilesh Poudel

Human Resourse Manager
TransNepal Business House
Durbarmarg, Kathmandu
Dear Mr. Poudel
Although I am disappointed that someone else was selected for your accounting
position, I appreciate your promptness and courtesy in notifying me. I‟ve heard
much about the reputation and fame of your institution. I believe that the selection
process that you have adopted is highly reliable and justifying. The selected
candidate, I hope, is obviously more suitable than myself. I‟m well convinced that
my desire to serve in your institution will be fulfilled in the vacancy announcement
that will be made in the future.
Because I firmly believe that I have the technical and interpersonal skills needed to
work in your fast-paced environment, I hope you will keep my resume in your
active file. My desire to become a productive member of your TransNepal staff
remains strong.
I enjoyed our interview, and I especially appreciate the time you and Mr. Satish
Gyawali spent describing your company‟s expansion into international markets. To
enhance my qualifications, I‟ve enrolled in a course in International Accounting at
CSU. I have also submitted the certificate that I‟ve recently obtained after
completing the IT training launched by the Institution of Information Technology,
KU.
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Should you have an opening for which I am qualified, you may reach me at 9844-
××××××.
Sincerely
Hari Prasad Aryal
4. What do you understand by a meeting in organizational context? What are

the procedures to be followed for conducting an effective meeting? 10
Answer No. 4
Meeting is a formal gathering of people who are involved in an organization or office.

The members of the organization hold meetings in order to discuss and make decisions
about the issues related to their business. The participants of a meeting have to deserve
certain rules, regulations and maxims. Meeting is also defined as meeting is a series of
proceedings in which the chairperson and the secretary, apart from the members play
significant roles right from the first to the final stage/phase of the meeting.
Conducting an effective meeting in organizational context involves a series of

procedures.
Procedures followed during the preparation and meeting conducting phases are as
follows.
 Collecting facts, information available and relevant materials.
This is done by the secretary in consultation with the President
 Setting objectives with guidelines. This is done by the president with the support
and cooperation of the secretary.
 Preparing agendas and sub-agendas. The agendas are as per organizational
requirements. They are jointly produced by the president and the secretary.
 Considering procedures likely to be followed. They are decided as directed by the
president. In most cases, the members are informed about them before the meeting
is conducted.
 Pre-informing the participants about meeting details. This is the fundamental job of
the office- secretary. The information contains the agendas, venue, date and time of
the meeting. The secretary also makes available copies of decisions taken during the
preceding meeting.
 Getting and taking the attendance. The secretary should maintain in the attendance
register. The attendance should contain signatures put down against the names.
 Minuting down the discussions and decisions taken in the meeting. The secretary is
required to forward copies of the minutes after the meeting is over.
5. Write short notes on Any Four of the following: (4×2.5=10)

a) Minutes and follow-up
b) Checklist for improving listening
c) Ethical communication in business
d) Report and proposal
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Answer No. 5
a) Minutes and follow-up

The minutes of a meeting can be very different in style and detail: „minutes vary from the
cursory “bullet” variety to the long “court reporter” variety‟ (Tropman, 1996). At one end
of the scale, we have decisions or action points recorded as a list with no explanation or
elaboration of the discussion. This is appropriate for some meetings, say a small project
group. At the other end, we have a complete record of what everyone said. A verbatim
report of that kind is far too time-consuming, and is unnecessary for most if not all business
meetings. A useful compromise is to prepare „content minutes‟– for each item on the
agenda. A minute is written as two separate paragraphs which:
 summarize the main points in the discussion;
 summarize the decision taken or the action agreed, naming whoever has to carry it out,
and giving the timescale or deadline.
Follow-up is a process of confirming the implications of meeting decisions or minutes

when decisions are made in the meeting and they are not implemented well, then the
follow-up activities need to be carried out. The major goal of follow-up is to ensure the
implementation of the decisions of a meeting.
b) Checklist for improving listening: Listening is a receptive skill of communication. A

successful communication event requires very careful and decent subskills of listening. The
participants need to observe certain maxims for making listening more effective. The
following points can be involved in the checklist for improving listening.
 Stop talking
 Work hard at listening
 Block out competing thoughts
 Control the listening environment
 Maintain an open mind
 Paraphrase the speaker‟s ideas
 Listen between the lines
 Capitalize on lag time
c) Ethical communication in business

Every business is dependent on effective ethical communication. It's what makes
new policy in government, raises money for nonprofits and strengthens a business.
Business communication occurs any time a message is given or received, whether
it's verbal or nonverbal, between two businesses, a business and its employees or a
business and the public. The messages sent and received by a business need to
follow ethical norms that don't offend or make individuals feel uncomfortable.
d) Report and proposal

The general purpose of a report is to identify a specific problem, explain it and
recommend action that will lead to a solution. It is usually written to someone with
authority (e.g. manager, boss, director, public official, etc.) or peer (e.g. colleague,
associate, classmate, etc.). Generally, a report is written after a survey, research, or
action. It may include valuable recommendations related to the topic or isssue on
which it is written.
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The general purpose of a proposal is to identify a particular need, explain it and

recommend how this need can best be met. It is usually written to someone who
needs to make a decision usually which involves spending or investing money (e.g.
a client or customer, a committee, someone responsible for finances within
company or organization, etc.). A proposal is generally prepared before the action
or research. It may include details about plans, objectives, cost, time, methodology,
etc. needed for carrying out the action or research.
Executive summary denotes a short document that summarizes a longer report,
proposal or group of related reports in such a way that readers can rapidly become
acquainted with a large body of material without having to read it all. It will usually
contain a brief statement of the problem or proposal covered in the major
document(s), background information, concise analysis and main conclusions. It is
intended as an aid to decision making by business managers.
The executive summary will make a potential funder, partner or customer want to
go further. In many instances, it could be all that they look at to make a decision on
something important to you and your business success.
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CAP-II, Marketing, Dec 2011

Suggested Answer
Section -'B'
Nabin Mahatto, a fresh chemical engineer, developed a new detergent
during his M. Tech. course. Upon passing out, he invested a small capital to
start manufacturing and selling the detergent under the brand name „Nippo‟.
Coming from a middle-class family himself, Mahatto decided to price his
detergent much lower than the other detergents available in the market at
that time. His pricing strategy paid rich dividends and Nippo became an
instant success. Using his newly acquired financial strength, Nabin
developed premium quality bathing soap with a unique colour and perfume
combination. Although, the cost price of this soap was high, Nabin priced it
lower to make it a comparable product in the market by maintaining a low
profit margin.
Questions:
a) Identify the factors Nabin considered in formulating pricing strategy of
the new bathing soap.
b) Comment on the suitability of pricing strategy in the case of the bathing
soap.
Answer No. 6
a) Determining the pricing strategy for a product depends on the product itself and
its distribution and promotion aspects. The pricing at the time of the launch of
the product is important from the point of growth or likely arrival of
competition. These factors were fully considered to formulate pricing strategy
for the new bathing soap.
b) I think, basically, keep an introductory price low and increase the same as the
sales build up. Stabilize the price as sales growth levels off. Reintroduce low
prices when the sales decline till the product has to be withdrawn.
Merits: Nabin's pricing strategy for the new bathing soap will help in easy and
quick growth of the sales during the introductory phase.
Demerits: This strategy doesn‟t take into account the fact that the product can
be easily copied. The strategy also doesn‟t cater to the effects of competition.
Even low price of a product like a new and unique bathing soap could create
doubts about the quality of the product among the customers.
7.
a) What is marketing? Explain the major features of marketing in Nepal. (2+3=5)
b) What are the requirements for effective segmentation of a consumer
market? 5
Answer No. 7
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a) Marketing is a total system of business activities designed to plan, price,

promote and distribute want satisfying product to target markets to achieve
organizational objectives. Marketing process involves planning and
implementation of all the marketing related activities to meet organizational
goals. It includes all the exchange related business activities which direct the
flow of goods and services from the producer to consumers. Today marketing is
fast growing, dynamic and highly competitive. The entire business activities
should be customer-oriented. Customer supremacy is seen in modern marketing,
besides realization of social responsibilities. Marketing provides values and
benefits to customers, firms and the society. Technology, globalization, growing
income and support services, have helped a lot in the fast growth of marketing
activities. A large number of people have got employment in this sector.
The following major features are found in Nepalese marketing:
 Low customer awareness

 Price sensitive customers
 Domination of middlemen
 Weak transportation system
 Lack of professionalism
 Small market size
 Uncertain environment
 Less customer orientation
 Weak information and communication
 Push selling; behavioral variables are neglected, etc.
b) Business organizations operate in different markets and the markets consist of

all types of existing and potential customers with their varying needs and wants.
Market Segmentation is the process of sub-dividing or breaking up the market
into different cohesive and homogeneous groups with a distinct marketing mix.
The Requirements for effective segmentation are:
Measurable: The size, purchasing power and profits of the segments should be
measured.
Accessible: The market segments should be effectively reached and served.
Substantial: The market segments should be large or profitable enough to serve.
Differential: The segments should be conceptually distinguishable and respond

differently to different marketing mix elements and programs.
Actionable: Effective programs should be designed for attracting and serving
the segments.
8.
a) "Buyer behavior is a decision making process". Comment. 5
b) Describe the role of product lifecycle in marketing decision making. 5
Answer No. 8
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a) While trying to understand the complex buyer decision making process,

marketers are making an attempt to understand the buyer behavior in terms of
who buys products or services, what they buy, how do they buy, when do they
buy, where do they buy, why do they buy, how often do they buy and so on
before developing marketing plans. It has been understood that factors
influencing the buyer behavior are social, cultural, personal and psychological.
Marketers are approaching this problem of trying to understand the complex
buyer behavior with the help of various models and theories. The buyer‟s choice
is the result of complex interplay of the influencing factors of buyer behavior.
Thus, buyer behavior is decision making process.
b) The product life cycle is a concept that attempts to describe a product's sales
profits, customers, competitors, and marketing emphasis from its beginning
until it is removed from the market. The product life cycle concept became
popular for the first time in 1965 through the efforts of Theodore Levitt.
Actually, the product life cycle is an attempt to recognize distinct stages in the
sales and profit history of the product. It explains the following facts to the
marketing decision makers:
 Products have a limited life after which the product may be dead if
appropriate strategies are not adopted.
 Product sales pass through distinct stages, each posing different challenges
to the seller.
 Product profits rise and fall at different stages of the product life cycle.
 Products require different marketing, financial, manufacturing, purchasing,
and personnel strategies at different stages of their life cycle.
The product life cycle helps marketers in the following ways:

i. It communicates the marketer that a product, like a living creature, has a
limited life.
ii. It helps the marketers in identifying the sales and profit situation of the
particular product in the market place.
iii. It helps to adopt right investment strategy at different stages of product
life cycle.
iv. It helps to adopt appropriate pricing, promotion, distribution, and
competitive policy in different stages of product life cycle.
v. It also warns the marketer and makes him alert about changes regarding
sales, profit, and competition.
More particularly, the product life cycle concept helps a marketer to formulate
and adopt suitable marketing, investment and competitive strategies at right
time.
9.
a) Discuss the effects of Socio-political environment on Nepalese
marketing system. 5
b) Give the meaning of advertising and explain the objectives of
advertising. 5
Answer No. 9
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a) The socio-political environment include two major marketing environmental

forces – social environmental and political environment. These are two major
environmental forces that affect freedom in work. If the social and political
environments are suitable, they will provide freedom in work and vice versa. In
Nepal both social and political environments are not supporting business
communities. Some of the major reasons are as follows:
i. Frequent change in government has annoyed business sector;
ii.Political unrest has created risk of security to the people;
iii.
Lawless situation has pushed the political cadres towards social barbarism;
iv.Labor unrest has damaged industrial sector and hence weakened production
and productivity in the country;
v. The present social and political environment has made the country
dependent on foreign products.
b) Advertising is any paid form of non-personal presentation and promotion of

ideas, goods, or service by an identified sponsor. It is a cost effective way to
disseminate message to scattered large masses. Advertising can be used to meet
the goals like giving information, persuading consumers, reminding and
reassuring customers.
Advertising today has got a prominent role in the promotion program of all
firms/companies. Many methods, media, agencies are playing active role to
meet advertising objectives of the companies. A lot of people are involved to
design attractive advertising focusing on mission, money, message, media, and
measurement elements known as the five Ms of advertising. Newspapers,
journals, posters, radio, TV, video are a few ad vehicles popularly used by the
organizations.
The following are some of the objectives of advertising:

 Communication of information/message
 Creation and extension of demand
 Educate, persuade and remind.
 Influence at sight of buying decision.
 Save time and money.
 Promotion of competition/ image building.
 Help middlemen, etc.
10. Briefly explain the following : (5×2=10)

a) Channel Dynamics
b) Decision support system as a component of MIS
c) Pull Vs Push strategy
d) Test marketing
e) E-commerce
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Answer No. 10
a) Channel Dynamics: The distribution channel system in marketing is dynamic.
Channel dynamics means the changes that evolve in the distribution channels
due to emergence of new marketing intermediaries (i.e. wholesalers and
retailers). Distribution channels do not stand still. They change in accordance
with the emergence of new channel participants. There are two types of channel
dynamics i.e. structural dynamics and behavioral dynamics.
b) Decision support system, also called as information analysis system or
marketing decision support system, is a set of statistical or mathematical tools
and decision models that help the marketing managers in analyzing data
gathered or supplied through MIS for making rational decision. Analytical
system helps marketers to make decisions on the problems by telling the truth
about the situations. In other words, analytical systems allow a firm to ask,
"Why did that happen?" and "What will happen if……..?" Mathematical and/or
statistical tools and decision models are used to solve several marketing
problems.
c) Pull Vs Push strategy: The promotion mix is affected by whether the
organization adopts a push strategy or a pull strategy. Pull strategy calls for
spending a lot on advertising and consumer promotion to build up consumer
demand. If the strategy is successful, consumers will ask their retailers for the
product, the retailers will ask the wholesalers and the wholesalers will ask the
producers. Push strategy calls for using the sales force and trade promotion to
push the product through channels. The producer promotes the product to the
wholesalers, the wholesalers to the retailers and the retailers to consumers.
d) It is related with testing commercial viability of new product and the marketing
mix designed for the product in the context of a market segment on a limited
scale. Marketing is done to make necessary changes in the marketing mix. The
product is sold in selected areas with the help of local level promotions in few
shops. Test marketing is periodically evaluated in terms of trial rate, advertising
effectiveness, and repeat purchase rate like variables.
e) E-commerce or electronic commerce refers to selling and buying something
electronically by using Internet facility. Therefore, e-commerce is also known as
„Internet shopping‟ or „Internet commerce‟. The buying or selling products
through Internet are software, documents, graphics, music, etc. These days,
physical products are also marketed through Internet.
Basically, there are three types of e-commerce; they are as follows:

i. Business-to-Consumer (B2C) Electronic Commerce: This type of
electronic commerce involves retailing products and services directly to
individual shoppers. For example, Barnes&Noble.com sells books, software,
and music to individual consumers.
ii. Business-to-Business (B2B) Electronic Commerce: This type of electronic
commerce involves in selling of goods and services among businesses. Web
auction site is used for selling cutting tools, grinding wheels, and metal
working fluids to more than 100,000 small machining businesses.
iii. Consumer-to-Consumer (C2C) Electronic Commerce: This type of
electronic commerce involves consumers selling directly to consumers. For
example, eBay, the giant Web auction site, allows people to sell their goods
to other consumers by auctioning the merchandise off to the highest bidder.
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CAP II Examination – June 2011
Section -'A' : Business Communication
The CEO of Giga Bank Ltd., with its head office based in Kathmandu has asked you, a Senior Recruitment Officer of the
bank to write a reply to Mrs. Lata Dawadi, a permanent and short-listed candidate of the bank, in response to her complaint
that a fresh candidate was selected ignoring her merit, work efficiency and experience. Reply in an encouraging and
convincing language including the following, 10
a) That the Selection Committee was aware of the complainant‟s qualifications, work efficiency and
experience,
b) That she could not be selected only for some technical reasons- the selected outside candidate has
long years of association with two or three banking organizations.
c) That the bank assures Mrs. Lata Dawadi that her appointment to a higher post will be considered in
case of any new opening in the future.
Answer No.1
Mrs. Lata Dawadi
Administrative Officer
Giga Bank Ltd.
Kathmandu
Regarding your complaint that an outside fresh candidate was selected to the post of the bank‟s senior administrative officer
and that you were left out as a disqualified candidate, we would like to persuade you that the bank management is well
aware of your qualifications, competence and work experience. But the interview board considered it necessary to pick up
the candidate on ground that the latter had the long years of association with two or three banking institutions. The
testimonials that one has submitted bear witness to the fact one had the wide experience in the related field. So, the selection
committee has made a wide decision to priotize the wider experience and higher qualification. So, we hope that you would
take it as a reasonable ground for making such a decision. Yet, we assure that the bank will take your experience and
qualification into account, in the further advertisement. In case of the new opening in future, bank assures to appoint you to
a higher post.
Wishing you a successful administrative career,
Senior Recruitment Officer
2. Analyze how information is transmitted through nonverbal messages and discuss how to improve nonverbal
communication skills. 10
Answer No.2
Nonverbal messages are sent by our eyes, face, and body. For example, sustained eye contact indicates
trust or admiration; brief eye contact may signify fear or stress. Expressions on a communicator‟s face
can supplement or entirely replace verbal messages. Posture can indicate status, confidence, shyness, or
submissiveness. Gestures also semd nonverbal messages, many of which are culture dependent.
Moreover, how a communicator uses time, space, and territory sends messages that require no words.
The amount of space we need for social interaction can be another means of sending messages
nonverbally.
Communicators may improve their nonverbal communication skills by maintaining eye contact, looking alert, eliminating
physical barriers that separate them from their listeners, and improving their comprehension of nonverbal signals. Besides,
following specific activities might prove valuable in improving nonverbal skill.
 Self-monitor your actions and tones. When you start to notice a habits or oddities that occur while
you speak, write them down. This will help correct yourself when it comes down to it.
 Be aware of how people see you. We all see ourselves one way, but others can see us in a different
manner. Notice how people react to you while you speak.
 Ask friends to help you determine where you're going wrong. They will know if you are sending
any conflicting signals. If you feel comfortable, ask your colleagues as well. They see another side
of you that your friends normally don't.
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 Videotape yourself while you speak. Make sure you are able to see at least your upper half. Notice
any gestures, facial expressions, or tones that can conflict with the message you are giving with
your words.
 Adapt with the roles you have in your life. You act differently as a student and as a mother, for
example. Be sure that your words, tones, actions, and gestures correlate with the environment and
role that you are in at that time.
3. Self-dependent students, who are quite concerned with job-search, make a lot of efforts towards job seeking to
support their studies. During their job-search efforts, they perform various steps. Mention five major steps which most of
the students follow in their efforts towards job search. 10
Answer No.3
Self-dependent students, who do learning by earning, need to do a lot of job searching during their career development
period. Many of such students need to get some kind of job to support their education. As getting employment is not an easy
task, they will have to spend quite a considerable amount of time during job search. They do this by building a network of
contacts with a number of related personalities and organizational heads at many places. The job search follows a process
which takes the searcher to a wider circle of friends facing similar problems and those who have already gone a few steps
ahead of them in getting the job. The most probable people they meet include: university professors, business executives,
businessmen and industrialists. They also need to approach community organizations, NGOs and INGOs and make contacts
with them through internships The job search process involves some of the following steps
Identifying and Preparing for Appropriate jobs During job search; students have to consider both internal and external
factors to get the right job. During this time, greater efforts are made to get the job that matches with the applicant‟s
education, skills and experiences. Here, the job searcher‟s specific qualities, distinct personal qualifications, work
experience and special qualitiescommunication skills matter much for the potential employer. Most schools have career
counseling centers that provide career counseling on job during the study period of the student. Besides, classified
advertisements published in the local papers also help the students in getting appropriate jobs.
Preparing for Employment: The stage of job search is followed by the second step in which the student prepares
himself/herself in preparing application documents. Here, the student makes personal visits, does online contacts and faxes
or emails his/ her resume to various organizations. He may also write a persuasive letter for an interview for employment
with follow-ups.
After finding one, he or she writes an application to select a group of companies, decides on whether to send a message
alone with a resume or with a resume and a reference sheet.
Placing of Resume in Job Search: A job application followed by a resume knocks at the door of the employer, who sets the
applicant to a challenging task of an interview.
Understanding & Writing an Effective Resume: A resume (also called data sheet and curriculum vitae) is the formal
arrangement of a writer‟s personal inventory. It lists facts in some orderly way. Normally, one applies for jobs by using
resume and letters. Writing complete resume require meeting certain requirements: contents, presentations, format and style
with appropriate style.
Resume Writing Process: One‟s job search activities begin with writing a good resume. The success of a resume in getting a
job depends upon three things: (a) Planning, (b) Start writing and (c) Completing the writing.
Planning involves: i. analyzing the situation in which the purpose of your writing the resume should be clear, ii. gathering
information about what the work organization intends to seek in its new job hire, iii. selecting the right medium and iv.
organizing the information
The Writing Stage: Here, start writing your resume in properly worded sentence format. Write things in a professional tone
to capture the audience attention.
Completing the writing: This involves evaluating the contents, editing and rewriting and producing the message to the
concerned as per instructions of the employer
4. What importance does ethical communication have in business? Discuss some of the ways of maintaining ethical
standards in business. 10
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Answer No.4
As a business communicator, you should understand basic ethical principles so that you can make
logical decisions when faced with dilemmas in the workplace. Professionals in any field must deal with
moral dilemmas on the job. However, just being a moral person and having sound personal ethics may
not be sufficient to handle the ethical issues that you may face in the workplace. On the job you will
face many dilemmas, and you will want to react ethically.
Taking ethics into consideration can be painful in the short term. But in the long term ethical behaviour makes sense and
pays off. Dealing honestly with colleagues and customers develops trust and builds stronger relationships. Many businesses
today recognize that ethical practices make good business sense. Ethical companies endure less litigation, less resentment,
and less government regulation. The following guidelines can help you set specific ethical goals and maintain a high ethical
standard.
Abiding by the Law. Know the laws in your field and follow them. Particularly important for business communicators are
issues of copyright law. Don't assume that Internet items are in the "public domain" and free to be used. Internet items are
also covered by copyright laws.
Telling the Truth. Ethical business communicators do not intentionally make statements that are untrue or deceptive. We
become aware of dishonesty in business when violators break laws, notably in advertising, packaging, and marketing. Half
truths, exaggerations, and deceptions constitute unethical communication. But conflicting loyalties in the workplace
sometimes blur the line between right and wrong.
Labeling Opinions. Sensitive communicators know the difference between facts and opinions. Facts are verifiable and often
are quantifiable; opinions are beliefs held with confidence but without substantiation. Stating opinions as if they were facts
is unethical.
Being Objective. Ethical business communicators recognize their own biases and strive to keep them from distorting a
message. Honest reporting means presenting the whole picture and relating all facts fairly.
Using Inclusive Language. Strive to use language that includes rather than excludes. Do not use expressions that
discriminate against individuals or groups on the basis of their gender, ethnicity, disability, or age. Language is
discriminatory when it stereotypes, insults, or excludes people.
Giving Credit. Ethical communicators give credit for ideas by (1) referring to originators names within the text, (2) using
quotation marks, and (3) documenting sources with endnotes, footnotes, or internal references. In school or on the job,
stealing ideas or words from others is unethical.
5. Briefly explain any four of the followings: (4×2.5=10)

a) Use of you-viewpoint language in business
b) Ethnocentrism
c) Good news letter
d) High-context vs. low-context cultures
e) Managing publicity communication
Answer No.5
a) In writing business messages, the use of the you-viewpoint language helps in the promotion of
goodwill of the organization among its clients and customers. As the you-viewpoint language
emphasizes the reader‟s interests and concerns rather than the writer‟s. This technique is very effective
to motivate, influence and win favor of the people. It emphasizes you and your and de-emphasizes we
and our. The you-viewpoint language is an attitude that places the reader in the center of things. It
involves being friendly and treating people the way they like to be treated. For instance, the statement
“I am happy to report…” places the writer at the center, whereas “you will be happy to know….”
places the reader at the center. The you-viewpoint language, therefore, provides the reader a kind of
psychological boost and confidence.
b) The belief in the superiority of one‟s own race is known as ethnocentrism, a natural attitude
inherent in all cultures. It is the view that uncritically presupposes that one‟s own culture is the criterion
against which all other cultures must be judged. It is almost always used in a negative sense to describe
attitudes that refuse to recognize the validity of values that differ from their own. It is difficult to avoid
some measure of ethnocentrism as many cultural values are considered to be universal values or truths.
c) A good-news letter also known as an indirect letter conveys a message of good news
(promotion, transfer to a better place) written by a senior member to the junior one of an organization.
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Such a letter is tuned with the expression of feelings of congratulations. Unlike in a bad-news latter,
the happy aspect of the message is expressed without any delay
d) Members of high-context cultures, particularly Asians, are more collectivist. They emphasize
membership in organizations, groups, and teams; they typically resist independence because it fosters
competition and confrontation instead of consensus. In contrast, members of low-context cultures,
particularly Americans, tend to value individualism. They believe that initiative and self assertion result
in personal achievement. They believe in individual action and personal responsibility, and they desire
a large degree of freedom in their personal lives.
e) Managing Publicity Communication has already been argued that communication is a

two-way process in which the sender and the receiver both play prominent roles. But in Publicity
Communication, the sender apparently plays the significant role to persuade the public at large
(receiver) to understand what has been said. Here the receiver plays a receptive role trying to
understand the contents of the message released by the sender. Like in regular communication,
the public assimilates the useful contents. Such a communication, in which the receiver does not
play a direct role, also generates feedback This is what happens in a PRESS RELEASE
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Section -'B' : Marketing
6. Read the following case carefully and answer the questions that follow:
McDonald having 14,000 branches in USA is a multinational company operating as a fast food chain in the world. It has
more than 32,000 outlets in 121 countries around the globe. It serves about 46 million customers every day. It has recently
offered 50 thousand additional jobs in one day. In its bid to expand its chain across the globe, it entered India in the late
1990s. It set the target to serve 200 million prosperous middle-class people in India and set up 150 outlets there by 2008.
McDonald as the giant fast food chain is popular in the world for hamburgers made mostly of beef. It is the world‟s biggest
user of beef. Beef is prohibited to Hindus, the majority population in India. Likewise, pork is restricted to Muslims, the
second biggest community in India. In addition, there is a sizable population of vegetarians that also include staunch
followers of Jainism.
Well aware of this fact, McDonald offered new product line to Indian market. Maharaja Mac was made of mutton, and
McAloo Tikki Burger was made of potato. McDonald carefully segregated its product into vegetarian and non vegetarian
categories.
When McDonald had just begun positioning itself into the Indian market, it had to face a law suit back in USA. This led to
street protests and pressures from consumers and political parties to close down its operations in India. It hit the image of
McDonald badly.
Questions:
a) What is the marketing mix of McDonald? 5
b) If McDonald is planning to enter Nepalese market, what cultural factors should it consider? 5
Answer No.6
a) As stated in the Case, McDonald‟s is a popular big multinational Company operating in many countries, expanding its
chain to new markets. One of the famous items- hamburgers is being sold in different combination for vegetarians and non
vegetarians and to Hindus, Buddhists, Muslims, Christians etc. Well aware of cultural differences, market segmentation and
product mix is done differently. E.g. Maharaja Mac (of mutton), McAloo Tikki Burger (of vegetables), use of beef-mutton-
pork (differently to different religions).
Generally product is sold at higher standard, expensive retail outlets. Varitiy of products to different segments and central
and local promotions are the other elements of its marketing mix.
b)
The following cultural factors need to be considered for feasibility of McDonald‟s in Nepalese market:
 First of all conduct marketing research +environmental analysis.
 Most cultural issues of Indian market also apply to Nepalese market.
 Emerging eating out habit in urban societies of Nepal.
 Use of red meat consumption is decreasing.
 Brahmins reject buff whereas most of the ethnic groups prefer buff for its low price and taste.
 Changing life styles of urban people.
 Religious neutrality exits in Nepal but majority people are Hindu. Hindus say no to beef whereas Muslim hate pork. On
the other hand Jains are vegetarians.
 Use of public media to convince the people about its product line and product mix.
 Slight modification in marketing mix as well as distribution system for nepalese market.
 Be well aware of street protests, pressure of consumer and political parties.
7.
a) Differentiate between the selling concept and marketing concept. 5
b) How does environment influences industrial development in Nepal? 5
Answer No 7
a) The differences between the selling concept and the marketing concept are as follows
i. The selling concept is a management philosophy based on the premises that consumers generally do not buy products
unless the organization itself puts aggressive selling efforts to create awareness and interest of the consumer in its products
and makes them inclined positively to buy these products. Whereas the marketing concept is a management philosophy that
focuses on the needs and wants of the customers of the target markets and the organization needs to find products and
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services that will prove to be a useful solution to solve the requirement of such needs and wants to deliver the satisfaction
of the customers.
ii. The selling concept helps in getting business. While the marketing concept regards customers as the pivotal point in the
entire marketing plan. The customer‟s needs and wants are supreme. The customer is the boss.
iii. The selling concept focuses on the needs of the sellers, whereas the marketing on concept focuses the needs of the buyer.
iv. The selling concept starts with the existing products and services and tries to fit into the needs of the customers whereas
the marketing concept starts with the proper understanding of target customer‟s needs and wants and then developing
products which would help customers to use and derive satisfaction.
b) Environment changes bring uncertainty in the industrial development. The environmental forces can be political,
economic, social and technological.
(i) Political changes in Nepal have the following impact on Nepalese industrial sector:
 Increasing labor agitation and strikes in industries;
 Close down of industries;
.
(ii) Economic changes have the following impact on Nepalese industrial sector:
 Rise in inflation rate and rise in price.
 Increase in imports and decrease in exports.
 Capital flight due to unsuitable investment climate.
(iii) Social Changes have the following impact on Nepalese industrial sector:
 Increase or decrease in size of population which affect size of market.
 Migration of population.
 Changes in attitudes, values and beliefs.
(iv) Technological changes have the following impact on Nepalese industrial sector:
 New technology replaces old technology
 Technology transfer increases
 New materials and processes become possible.
8.
a) Write a short note on market segmentation and explain its benefits to marketers. 5
b) Explain the significance of marketing information system. 5
Answer No.8
a) Market segmentation is a process of dividing the total market into several smaller groups, such that the members of each
group are similar with respect to the factors that influence demand .By dividing the total market in distinct smaller groups
helps to identify needs and characteristics of buyers. Mass marketing, product variety marketing, individual marketing and
target marketing are some of the common approaches found in dealing with the market.
Benefits of market Segmentation:
To achieve effective market segmentation requires measurability, accessibility, profitability and heterogeneous needs and
characteristics in the market. A proper marketing mix and programs through appropriate segmentation strategy provides the
following benefits:
- Identification of profitable markets
- Market specialization
- Effective use of available resources
- Efficient monitoring of market changes, etc.
b) Successful marketting planning and formulation of strategy requires supporting information and relevant data. No
marketing company can function effectively without appropriate and timely information on each and every aspect of
marketing like the consumer, the market, the competition and the environment. The decision making process becomes easier
with relevant information.
Marketing managers need a continuous flow of information to respond to the environmental changes and to shape and
reshape the marketing mix in order to earn long term business. Marketing department has to organize and distribute a
continuous flow of information to its marketing managers by studying their information needs and designing marketing
information system to meet these needs.
Marketing information system is an organized way of continually gathering and analyzing data to provide relevant
information needed to prepare marketing plan and program. In the words of Philip Kotler, “a marketing information system
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consists of people, equipment and procedures to gather, sort, analyze, evaluate and distribute needed, timely and accurate
information to marketing decision makers.” The significance of marketing information system is:
i. It helps marketing planning by making available and reliable information about the external
environment and the internal realities of the company.
ii. It helps to take advantage of marketing opportunities and to counter marketing threats.
iii. It helps early spotting of changing trends and provides marketing intelligence to the firm.
iv. It facilitates the development of action programs for achieving goals.
v. It helps the firm to adjust its products and services to the needs and tastes of target customers.
vi. It helps the firm to control its marketing activities.
9.
a) Describe briefly the steps of new product development process. 5
b) Describe Distribution structure for consumer goods. 5
Answer No.9
a) New product development is a time consuming and painful process. It steps in this process are:
i. Idea generation: New product development starts with an idea. New product ideas come from a variety of sources i.e.
customers, scientists, competitors, employees, channel members, investors, marketing consultants, universities, business
journals, seminars etc. Various techniques have been developed and used for idea generation i.e. attributes listing, forced
relationship, morphological analysis, need/problem identification, and brainstorming.
ii. Idea screening: The purpose of screening is to drop poor ideas as early as possible. The total ideas are categorized into
three groups i.e. promosing ideas, marginal ideas and reject ideas.
iii. Concept development and testing: It is the method of trying to guage buyer interest before actual product has been
developed. A product idea can be turned into several concepts. In fact, consumers buy product concepts. Concept testing
entails presenting consumers with an elaborated version of the concept. Intercept interview technique is mainly used for
concept testing. Generally, this type of interview focuses on buying intent, frequency of purchase of the product, uniqueness
of the concept, the price, and the problem solving attributes of the product.
iv. Marketing Strategy development: After testing, the product manager must develop a marketing strategy for the new
product. Such a marketing strategy plan includes the target market size and structure, possible positioning for the product,
preliminary estimate of sales, market share, the product‟s price, distribution, promotion and marketing budget, long run
sales and profit goals and marketing mix program overtime.
v. Business analysis: This step is essential in the total process of new product development because several vital decisions
regarding the product are expanded into business proposal. These decisions should be financial as well as marketing point of
view. Management should analyze various activities in this step i.e. identify product features, estimate market demand,
competition and product‟s profitability, establish a program to develop the market and assign responsibility for study of the
feasibility.
vi. Product development and testing: In this step, the idea-on-paper is converted into a physical product. Having completed
the business analysis, it moves to R&D or engineering to be developed into a physical product. Product testing may be
conducted through an expert panel, central location testing, in-home test etc.
vii. Market testing: After management is satisfied with functional performance, the product is given a brand name,
packaging and put to market test. The new product is introduced in selected market to learn how large the market is and how
consumers and dealers react to handling, using and repurchasing the product.
viii. Commercialization: Full-scale production and marketing programs are planned and the product is launched in the target
market.
b) Distribution structure for consumer goods should be as follows:

Four channel structures are widely used in the marketing of consumer goods. The commonly used channels for consumer
goods are as follows:
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Channel Structure for Consumer Goods.
Manufacturer of Consumers Goods
1 2 3 4
Agent
Wholesaler Wholesaler
Retailer Retailer Retailer
Consumer
1. Manufacturer - Consumer Channel

This is a direct channel which involves no middleman. Therefore, this channel is also known as Zero-level channel of
distribution, Here, the manufacturer sells goods and services directly to the consumers through indoor sales process or
outdoor sales process.
2. Manufacturer-Retailer-Consumer Channel
In this channel structure, one-level of middlemen is used i.e., retailers, Manufacturer sells to the retailers and retailers
sell to the ultimate consumers. Here, retailers function as middleman.
3. Manufacturer-Wholesaler-Retailer-Consumer Channel
In this channel structure, two-levels of middlemen are used. They are wholesalers and retailers. In this system,
manufacturer sells goods to the wholesalers, wholesalers sell to the retailers, and retailers sell to the ultimate consumers.
4. Manufacturer-Agent-Wholesaler-Retailer-Consumers Channel
In this channel structure, three levels of channel middlemen are used to reach the ultimate consumers. They are agent,
wholesaler and retailer. Here, agent collects goods from the manufacturer and distributes to the wholesaler, wholesaler
sells them to the retailers, and the retailers sell to the consumers.
The second, third, and fourth channel of distribution are indirect channels of distribution since independent
middlemen are used to reach the final consumers. In direct channel system, the manufacturer exercises maximum level
of distribution control. While in indirect channel system, the manufacturer looses controlling power over distribution
functions.
a) Telemarketing.
b) Elements of marketing communication.
c) Test marketing.
d) Resolution of channel conflicts.
e) Promotion mix.
Answer No.10
a) Telemarketing
It is marketing done by using telephone and call centers to attract customers. It sells to existing customers and provides
service by taking order and answering questions. It is becoming popular as business houses carryout telesales, telecoverage,
teleprospecting, customer services and technical support. Customers get improved satisfaction from telemarketing as a direct
marketing tool. Telemarketer has reduced the need of personal selling significantly.
b) Elements of marketing communication

The elements of marketing communication are as follows:
Source: The communication process begins with a source who is generally the sender of the message. The source is
generally the manufacturer, marketing channel members who initiate and intend to send a communication.
Encoding: It is the process of designing message by putting thoughts and ideas in symbolic language.
Message Channel: It is generally called media. This is the path through which the message moves from one party to another.
Media may be audio, video or print.
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Decoding: Decoding is the process by which the receiver assigns meaning to symbol transmitted by the sender.
Receiver: The receiver is a person, a group or organization to which the communication is directed.
Feedback: It provides information to redesign communication to meet changing needs of marketing.
c)Test Marketing:
It is related with testing commercial viability of new product in the context of a market segment on a limited scale.
Marketing is done to have a reasonable estimate of sales and market share to make necessary changes in the marketing mix.
The product is sold in selected areas with the help of local level promotion in few shops. Test marketing is periodically
evaluated in terms of trial rate, advertising effectiveness, and repeat purchase rate.
d) Resolution of channel conflicts

Channel members usually specialize in particular marketing functions. Such as, manufacturers focus on production and
national promotion, wholesalers perform distribution task, and retailers specialize in distribution and promotion at the
consumer level. Such specialization creates conflicts among channel members. As a result, conflict resolution among
channel members becomes essential.
In practice, there are four methods of resolving channel conflicts:
 Resolution through Mitigation
 Resolution through Conciliation
 Resolution through Arbitration
 Resolution through Regulation.
 Conflict Resolution through Mitigation

Mitigation is a method of resolving disputes through mutual understanding between the parties without using any mediator.
It is possible only when both the parties honestly realize that the good faith between them must be restored for their long-
term relationship. In this case, both the parties actively and mutually take actions to restore their relationship without asking
the help of any third party. This method of resolving conflict is regarded as the best method.
 Conflict Resolution through Conciliation

Conciliation agreement between parties to resolve disputes by asking a third party to mediate differences voluntarily. The
third party does hot have any power to force the conflicting parties. If the agreement is reached, a conciliation statement
based on the signed agreement is recorded.
 Conflict Resolution through Arbitration

Under this method, the conflicting parties gather together with an arbitrator. They disclose all their opinions and then make
an agreement to continue the business with full understanding and confidence. This method permits them to continue their
business without damaging the goodwill of either of the parties. Timely resolution of the channel conflict is another positive
point of this method of resolution.
 Conflict Resolution through Regulation

Under this method, conflicts are resolved through law. All the conflicting parties take the help of law and go to the court for
the resolution of their disputes. However, this method of conflict resolution is an expensive, time consuming, and harmful to
all conflicting parties; It may damage the goodwill of both the parties. This method of conflict resolution is not popular and
practical. This method is adopted only when the channel conflict between the parties is difficult to settle through arbitration.
e) Promotional mix:
Promotion is the fourth element in the marketing mix, which is generally divided into five different tools. They are:
 Personal selling: It consists of executing sales through salespersons.
 Advertising: Any paid form of non-personal presentation to promote products and services by
identified sponsor.
 Sales promotion: Short term incentives that encourage people to buy a product/service.
 Publicity: An unpaid form of non-personal presentation of news and information about products or
services to prospective customers.
 Direct marketing: Non-personal presentation to the prospective customers to which they can
respond directly and quickly.
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All Questions are compulsory.
Section -'A': Business Communication

1. Re
ad the following case on Pillsbury carefully and respond the questions based on it. (4 2.5=10)
In the early 1990s, few formal channels of communication were in place at Pillsbury. When new
management arrived and the company was restructured, all that changed. ―We started a business-
focused employee newspaper,‖ said Lou de Ocejo, human resources vice president. ―We started
having CEO luncheons every month, and communication meetings with all functions at least once a
quarter. We tried to do a lot of things to tell people what this new age at Pillsbury was all about.‖
Most difficult, though was getting employees to talk back. Management wanted to know what was
going right and what was going wrong. It wanted product ideas and suggestions for improving
procedures. But employees, in most organizations, are cautious, despite pep talks from managers
about how their doors are always open.
Then Pillsbury installed a unique feedback tool, a hotline called ―In Touch.‖ This toll-free, third-
party voice mail service allows employees to leave anonymous messages about any subject at any
time. At first, employees were cynical, but over time they began to respond. More than 2,300
messages have now been recorded. Employees reported such problems as faulty work systems and
ineffective supervisors. But they also provided many new product ideas and cost-saving
suggestions, such as recommendations for pizza toppings and ways to recycle surplus paper.
―Getting this feedback wasn‘t fun the first time out, and sometimes it still isn‘t,‖ reported Lou de
Ocejo, ―but the system does just what we need it to do.‖
Issues:
a) Why are informal channels of communication dangerous in times of organizational upheaval?
b) What obstacles may interrupt the downward, upward, and horizontal flow of information in
organizations undergoing restructuring, such as Pillsbury?
c) How could Pillsbury‘s ―In Touch‖ voice mail system break down common barriers to
communication?
d) Why do some companies continue feedback system when it isn‘t always fun, and sometimes it‘s
even offensive?
Answer to Q. no. 1
a) Informal channels of communication are asystematic, and they mostly create rumors which are
often false. At the time of organizational upheaval such false rumors may obstruct the
organizational establishment and hinder the work. Since it is not clearly known to staff and other
related personnel what will happen the next, such communication channels create confusion and
insecurity in them.
b) Organizational restructuring also suggests restructuring of attitude, feelings and emotions, a factor
that is hard to change. For instance, when Pillsbury decided to lunch an open communication tool
and environment, it was not just about external transformation. It entailed the rewiring of inner
world of relations and emotions. It is difficult for top executives to smother their egos and be ready
to listen to their subordinates and hear complains and suggestions against them. The subordinate
may not be that open as expected because they may fear the indirect reprimanding. So far as
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horizontal peers are concerned, their ego and sense of competition may come in between marring
the ideal set for the reconstruction.
c) Pillsbury‘s ―InTouch‖ voicemail system proved to be comfortable to all the employees since they
could drop their messages and suggestions anonymously. The messages and criticisms which the
employees can not put personally against their managers were also posted with ease. In this way,
Pillsbury‘s voicemail system could break the common communication barrier.
d) Though sometimes such voicemail feedback system can be harmful and often offensive, it often
helps the people in management to know if there is any problem or malfunctioning in the company.
Besides, some of the feedbacks really become constructive. Therefore, the companies continue with
the feedback even though it‘s not always fun.
2. W
hat is a resume? Assuming that the UNDP Office in Nepal is looking for an Administrative
Assistant to be placed in its Head Office in Kathmandu, prepare a complete persuasive resume.
(2+8=10)
Answer to Q. no. 2
Resume or CV is a document that describes the applicant‘s qualifications including his/her
profile, goals, skills, academic degree, training and professional experience so that the prospective
employers can see an overall preview of how he/she can contribute to their company in capacity as
the post applied. All these details in a resume are presented in a standard and recognized order; they
cannot be put down in a random fashion. Down below is a sample of a resume:
Sample Resume for Administrative Assistant
Prem Basnet
Address: Kathmandu Metropolitan City-10, New Baneshwor, Kathmandu
Phone: 977-01-4456783 Cell: 977-01-9841345217
Email: mail2prembasnet@yahoo.com
Sex: Male, Date of Birth: September 23, 1980
Summary:
Experienced administrative assistant with ten years of experience providing support to executives
and school administrators. Expert in all office technology and practices. Excellent interpersonal
skills. Works with accuracy and efficiency. Earned Associates Degree in Business Administration
from Tribhuvan University.
Skills:
 Filing
 10-key calculator
 Office machines
 Communications
 Correspondence
 Client relations
 Mail delivery
 Highly organized

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 MS Word & MS Excel

 Procurement
 Bookkeeping
Experience:
Kathmandu University, Kathmandu 2007 - till date
Administrative Assistant
Perform a broad range of administrative and clerical duties to the Foreign Language Department.
Input student grades data into online database, help in departmental scholarship award decisions,
and provide administrative support student TAs.
 Designed templates to automate production of award letters and other common
correspondence, reducing generation time by 55%.
 Performed accurate and rapid data entry to ensure timely grade postings.
 Created Excel Spreadsheets to summarize grade distribution for university administrators.
 Handled large phone system for professors and students.
 Developed thorough guidelines for operating office equipment to reduce repair calls by
10%.
Lord Buddha Academy, Manipal University, Kathmandu 2005-2007
Office Assistant
Performed various clerical and administrative duties for Lord Buddha Academy for Biotechnology
and Interior Design Departments, including scheduling meetings and appointments, department
publicity, typing, filing, emailing and answering phones.
 Helped with grading and the posting of grades.

 Organized departmental meeting schedules to eliminate conflicts and ensure attendance.
 Arranged meetings with students and faculty. Organized student contact information and
messages for professors.
Crimson International College, Kathmandu 2003-2005
Clerk
Reported directly to principal, provided key clerical support for 30 teachers and 400 students.
Worked directly with parents, students, suppliers and the media.
 Handled large phone system.

 Organized principal‘s mail and incoming calls to reduce interruptions.
 Achieved 20% discount by ordering college supplies in bulk quarterly.
 Wrote and edited monthly newsletters to parents.
 Created and distributed reports to assist principal with college scheduling: calendars, lunch
verification, student progress report, supplies, inventory and mailing databases.
Education and Training

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Associate of Arts Degree (Business Administration), 2004
Shankardev Campus, Tribhuvan University, Kathmandu, Nepal
Additional Courses
Microsoft Office for Administrative Assistant
Basic Bookkeeping
FAFSA Processing
Customer Service Training
3. Pr
epare a full-fledged meeting minute of the AGM of any national financial institution in capacity as
the institution‘s Member Secretary. 10
Answer to Q. no. 3
Sample Meeting Minutes of AGM
October 30, 2010
Date: Monday 29, 2010
Meeting Start Time: 10:00 am
Meeting Finish Time: 1:00 pm
Chairperson: Rajendra Shahi
Present: Sabita Nakarmi (Deputy Chairperson), Sajan Sakya (Director), Drona Acharya (Managing
Director), Krishna Belbase (Director), Sharmila Panthi (Director)
In Attendance: Shreedhar Gautam (Member Secretary and CEO), 25% shareholders of the
institution‘s shares and ten observers.
Location: Rastriya Shabhagriha, Exhibition Road, Kathmandu
1. Apologies: Nil
2. Chairperson’s Address:
The Chairperson opened the meeting at 10.00 am as scheduled and noted that as more than five
shareholders (representing greater than 50% of the institution‘s issued shares) were in attendance, a
quorum existed and the meeting was formally declared open.

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The Chairperson indicated that the meeting was convened under Notice of Meeting distributed
on 26 September 2010 which was greater than 28 days from today‘s date and therefore the meeting
was appropriately constituted.
The Chairperson indicated that the Minutes of the last General Meeting of the institution held on
October 25 2009 were available to the meeting.
Proxy details were read to the meeting and distributed as per the attached schedule 26
September 2010.
3. The Chairperson invited the Managing Director to address the meeting on current matters
relating to the institution’s business.
4. Financial Statements and Reports
4.1 The meeting received and considered the financial statements and reports for the year ending 30
July 2010. These statements were included in the annual report to all shareholders and are tabled
here.
4.2 It was noted that there was no statutory requirement for these statements to be adopted, passed
or resolved at this Annual General Meeting and gave the shareholders the opportunity to ask
questions.
4.3 A number of questions raised by shareholders were responded to by the Chairperson and the
Managing Director.
5. Remuneration Report (Resolution 1)
5.1 The Chairperson proposed that the Remuneration Report as set out in the Annual Report for the
financial year ended 30 July 2010 be adopted. The Chairperson indicated that this resolution
required an advisory vote only from shareholders and does not serve to bind the institution or its
Directors.
5.2 The Chairperson invited questions in connection with the Remuneration Report. Questions
raised by shareholders were responded to by the Chairperson.
5.3 Resolution was seconded by Suman Pokhrel.
5.4 Resolution was passed on a show of hands.
6. Re-election of Sajan Sakya (Resolution 2)
6.1 The Chairperson proposed that Mr. Sajan Sakya , a Director retiring by rotation in accordance
with clause 24 of the institution‘s constitution, and being eligible, be re-elected as a director of the
institution.
6.2 Resolution was seconded by Sakuntala Sapkota.
6.3 Resolution was passed on a show of hands.

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7. Re-election of Mrs. Sharmila Panthi (Resolution 3)
7.1 The Chairperson proposed that Mrs. Sharmila Panthi, being a Director appointed during the year
and being eligible, be re-elected as a Director of the institution.
7.2 Resolution was seconded by Pramod Thakuri.
7.3 Resolution was passed on a unanimous show of hands.
The Chairperson thanked the staff and Directors for the efforts during the past successful year.
The Chairperson also thanked our legal team, Hari Sapkota and Chidananda Yadav for their
continued support along with shareholders for their support and attendance at the meeting.
There being no further business the meeting closed at 1.00 pm.
4. Di
scuss listening process and its barriers. 10
Answer to Q. no. 4
Listening takes place in four stages—perception, interpretation, evaluation, and action. Barriers,
however, can obstruct the listening process. These barriers may be physical or mental.
Perception: The listening process begins when you hear sounds and concentrate on them. There
may be numerous kinds of sounds around us, but until we tuned to them these sounds just go
unnoticed. The conscious act of listening begins when we focus on the sounds around us and select
those we choose to hear. We tune in when we sense that the message is important, when we are
interested in the topic, or when we are in the mood to listen. Perception is reduced by impaired
hearing, noisy surrounding, inattention, and pseudolistening. Pseudolistening occurs when listeners
―fake‖ it. They look as if they are listening, but their minds are wandering far off.
Interpretation: Once we have focused our attention on a sound or message, we begin to interpret,
or decode, it. Interpretation of a message is colored by our cultural, educational and social frames of
reference. The meanings we attach to the speaker‘s words are filtered through oer expectations and
total life experiences. Thus, our interpretation of the speaker‘s meaning may be quite different from
what the speaker intended because our frame of reference is different.
Evaluation: After interpreting the meaning of a message, you analyze its merit and draw
conclusions. To do this, we attempt to separate fact from opinion. Good listeners try to be objective,
and they avoid prejudging the message. The appearance and mannerism of the speaker can also
affect a listener‘s evaluation of a message. A juror, for example, might jump to the conclusion that
an accused man is guilty because of his fierce expression or his substandard English. Thus, to
evaluate a message accurately and objectively, we should consider all the information, be aware of
our own biases, and avoid jumping to hasty conclusions.
Action: Responding to a message may involve storing the message in memory for future use,
reacting with a physical response (a frown, a smile, a laugh), or supplying feedback to the speaker.
Listener feedback is essential because it helps clarify the message so that it can be decoded
accurately. Feedback also helps the speaker to find out whether the message is getting through
clearly. In one-to-one conversation, of course, no clear distinction exists between the roles of
listener and speaker—we give or receive feedback as our role alternates.

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5. W
rite short notes on the followings (Any Four): (4×2.5=10)
c) Letter of authorization
d) Upward communication
e) Career objectives
f) Internal unethical dealing and external unethical dealing
g) Use of graphics in non-verbal communication
Answer to Q. no. 5
a) Unless the report is self initiated, someone has asked you to produce a report. Hence, your opening
words in the transmittal document refer to that request and it is called the letter of authorization.
Include the date. Remember that much time may have passed since the initial request and that even
the requester may have forgotten the details. Some report writers include in the appendix the actual
report request as supplementary information.
b) Upward communication, also known as bottom-up communication, is the one in which
communication takes place from bottom to top level. Here, juniors communicate as senders to the
seniors as receivers. Opposite to the downward communication, it is the democratic form of
communication in which lower ranking employees can have communication access the high ranking
staff.
c) Opinion is divided on the effect of including a career objective on a resume. Recruiters think such
statements indicate that a candidate has made a commitment to a career. Moreover, career
objectives make the recruiter‘s life easier by quickly classifying the resume. But such declarations
can also disqualify a candidate if the stated objective doesn‘t match a company‘s job description.
d) Internal and external unethical dealings: Some organizations violate ethical morals to stand and
show themselves as good achievers or to make progress overnight without making any great efforts.
In doing this, established ethical norms and values are violated and unethical things are done.
The unethical practices within the organization is called internal unethical dealing and the other in
which one organization violates ethical norms and values in its dealing with external organizations
is called unethical external dealing.
e) Graphics are presentation in lines, boxes, circles, figures, and sketches used to explain and
clarify things which words may or may not do. As a part of sign language, it is abundantly used in
non-verbal communication, where words can be of little or no use.

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Section -'B': Marketing
6. Read the following case carefully and answer the question that follows:
Close-up, the youth brand, was the first gel toothpaste launched in India in 1975 and has remained
the category leader ever since. The brand arose out of a universal need for confidence in a social
situation, starting with fresh breath. In 2002, Close-Up was re-launched in two variants – Close-Up
Tingly Red and Close-Up Eucalyptus Waves. Both products with their superior formulation provide
superior cleaning, enhanced flavor and a freshness that extends from nose to throat. The
communication for Close-Up focuses on the base line ‗for the most kissable fresh breath‘ which
encourages young people to go out and get a life.
The new flavors are in line with HLL‘s (Hindustan Lever Limited) endeavor continuously innovates
and offer new advanced products to the consumers. These flavors have been especially designed to
win over competition consumers.
Recently, Close-Up Whitening, the tooth whitening variant, was introduced with a unique self-
check device called ―shade card‖. This helps consumers identify how ‗yellow‘ their teeth really are
and also to track the improvement in teeth color as they use the paste. The toothpaste helps teeth get
whiter in four weeks of regular use.
Questions:
a) O
n the basis of above given information explain the product attributes of Close-up and marketing
strategy of HHL 5
b) Id
entify the target market for Close-Up and provide some suggestions to increase its market share. 5
Answer to Q. No. 6
a)
So far product attributes of close-up is concerned in a long history it has gone through changes,
modification looking at competition. Superior cleaning, safety of teeth, beauty, flavor, freshness
from nose to throats, tooth whitening variant, self check device, kissable breath, etc. are the major
attributes found in close-up tooth paste targeted mainly to young people.
Hindustan Lever Limited (HLL) has to follow product line expansion and product positioning
strategy as most suitable marketing strategy to satisfy consumers as well as face competition.
b)
Target market of HLL seems to be kissable fresh breath to teenagers. Now product line expansion
as well as whitening teeth to attract new groups to product line. As stated earlier favorable product

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attributes of close-up has made it capable to attract large number of consumers.
HLL has followed good marketing strategy leading towards success. It has to continue to study
market as well as customers reactions, regular monitoring of the market and maintain product
quality, whitening teeth and kissable breath can be the appropriate strategy to increase its market
share.
7.
a) Explain the importance of marketing to consumers. 5
b)
What are the ingredients of the marketing concept? Describe in short. 5
Answer to Q. No. 7
a)
i. Delivering the standard of living
Marketing delivers the standard of living to consumers by offering products and services they need.
If the firm doesn‘t perform marketing properly, consumers will be dissatisfied with the quality of
products and product performance. That‘s why, the marketing firm offers its product in accordance
with glad consumer who dictates.
ii. Providing various information

Marketing provides consumer with various information about the product such as product attributes,
product performance, price, benefits that they get after buying, product availability in right quantity
at right place method of use etc. As a result, they become more selective and efficient in buying
products of their need.
iii. Improving quality of life

Marketing plays its role in improving consumer‘s quality of life by encouraging producers to
produce safer and hygienic products. Manufacturers produce their products considering public
service messages. That is why, many promising firms have started to write on the packages ―sugar
free food, cholesterol free oils and foods, antiseptic cream, friendly instruments of family planning
etc.
iv. Enhancing beliefs

By providing qualitative and affordable products and services to consumers through various
convenient distributing centers and facilitating after sale services, the firm enhances consumer
beliefs on products and services.
v. Promoting life style

Marketing promotes consumer‘s choice relating to the quality, size, model and design of products
that they use are advanced. The advanced family prefers foreign goods where as the average people
rely on the products of value satisfaction. Today‘s sophisticated, luxurious, advanced products make
people‘s life more comfortable.
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b)
i. Target market Selection
Infact, everyone has differed needs and wants. Hence, marketers moves toward identifying
segments that are highly affected by demographic, phychographic and behavioral need differences.
Thus, marketers do best when they select their target markets carefully and prepare tailored
marketing progam.
ii. Customer needs evaluation

All manufacturing activities of the organization should be focused on determining and satisfying
target customers needs and wants. These needs are defined from the customer point of view i.e.
stated needs, real needs, unstated needs, delight needs and secret needs.
iii. Choosing integrated marketing programmes

In modern marketing environment, delivers of customer value and satisfaction is complex task.
When all the company‘s departments work together to serve the customer‘s interests, the result is
integrated marketing. Integrated marketing takes place on three levels i.e.
First, Coordination with in marketing department
Second, Coordination with in entire organization.
Third, Coordination with concerned external institutions (the key parties)
iv. Achieving marketing objectives

The ultimate purpose of the marketing concept is to achieve marketing objectives i.e. profit, sales
volume, market share survive and growth through customer satisfaction.
8.
a) What is market segmentation? List the factors that are required for effective market
segmentation. 5
b) Describe the main price discounts popularly used by marketers in Nepal. 5
Answer to Q. No. 8
a)
Market segmentation is a process of dividing the total market for a product or service into several
smaller groups, such that the members of each group are similar with respect to the factors that
influence demand .By dividing the total market to distinct smaller groups helps to identify real need
and characteristics of buyers. Mass marketing, product variety marketing, individual marketing and
target marketing are some of the common approaches found in dealing with the market.
Following factors are to be considered for marking market segmentation effective:
 Heterogeneous needs and characteristics

 The needs and characteristics are measurable
 The market is accessible to the marketer, and
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 It is large enough to be profitable.
b)
Discounts are the rates or percentages of the deduction granted by the seller to the customer for
making purchase of goods. In other words, discount means to put a reduced value on the product.
While allowances are also discounts allowed for the task or work performed accordingly.
There are several forms of discounts and allowances;
i. Quantity discount: Quantity discounts are the deductions from a seller‘s
price list intended to encourage customers to buy in larges amounts. Therefore, the customers
buying larger quantity get high discount than the customers buying small quantity.
ii. Trade discount: Trade discounts are the deductions from manufacturer‘s
price list offered to buyers (i.e., resellers including wholesalers and retailers) in payment for
marketing functions the buyers will perform. Therefore, the manufacturer provides trade discounts
to the wholesalers and retailers for buying and selling his products to the final consumers.
iii. Cash discount: Cash discounts are deductions granted by the seller to the
buyers for paying their bills within a specified time, or for cash sales. Therefore, the customers
willing to make cash payment upon the purchase of goods from the seller get better or attractive
discount compared to the customers willing to purchase goods on credit.
iv. Price-off: Price-off discounts are deductions granted by a manufacturer to
the customers temporarily to attract their attention towards the product. It is printed in the package
and the discounts are granted for a specified time may for one week, two weeks, or month. But it
may not be for more than three months.
v. Seasonal discount: Seasonal discounts are deductions granted by the traders
like wholesalers and retailers to the buyers to reduce their old stock of goods. This type of discount
is provided to the seasonal goods such as readymade clothes, wool products, etc.
9.
a) What are the messages that the product life-cycle communicates to the marketers? 5
b) Discuss main features of organizational buying behavior. 5
Answer to Q. No. 9
a)
Actually, the product life cycle is an attempt to recognize distinct stages in the sales and profit
history of the product. To say that a product has a life cycle is to communicate the following four
things:
 Products have a limited life after which the product may be dead if
appropriate strategies are not adopted accordingly.
 Product sales pass through distinct stages, each posing different challenges to
the seller.
 Product profits rise and fall at different stages of the product life cycle.
 Products require different marketing, financial, manufacturing, purchasing,
and personnel strategies at different stages of their life cycle.
b)
The nature of business market demand has some distinct characteristics;
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i. Demand is derived from the demand for the consumer products in which that
business product is used;
ii. Demand for business products is inelastic i.e., there is a very little changes in
the demand in response to its price;
iii. Demand is widely fluctuating i.e., business users take more inventories or
less inventories when they expect drastic changes that may take place in prices of the products or in
national economy;
iv. Buyers are well informed about what they are buying than are ultimate
consumers.
v. Organizational buying is usually regulated by law. Every organization may
have ites own purchase policy and rule regarding the purchase of necessary goods and services from
the seller or suppliers. No organization can buy on random basis as does by the individual cosumer.
Organizations have to follow its purchase policy and rules.
vi. Organizational buyers usually buy goods in lot sizes as compared to the
individual consumer.
10. Briefly explain any five of the followings: (5×2=10)
a) Warehousing
b) Marketing research.
c) Application of marketing mix in business.
d) E-commerce
e) Push and pull strategy.
f) Sales promotion and its methods
Answer to Q. No. 10
a)
The word storage means holding the stock of goods for a longer period as the goods are not
immediately in demand, Warehousing involves more than storage. Warehouse perform many
functions of wholesaler, retailer and producer. Products held in inventory are physically stored in a
warehouse. Warehousing embraces a set of functions such as assembling, dividing and storing
products and preparing them for re-shipping. Warehousing vests the products with time and place
utility and in the case of some commodities. ‗form utility as well‘
b)
Marketing research is a systematic and objective search for and analysis of information relevant to
the identification and solution of marketing problems. Marketing research is generally conducted to
solve a particular problem of the firm. It obtains unique information for special decision-making
needs. It is considered as apart of the MIS because it can develop large amounts of marketing
information.
The main function or objective of marketing research is to provide most relevant or most pertinent
information to the managers for marketing decision-making. However, an ideal marketing research
must need to include at least four qualities or terms:
 It is a systematic search

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 It is objective search
 It is an informative search
 It is a problem-focused study
 It is a decisive search
c)
Marketing mix is applied in business basically to match the firm‘s product/services to the target
customers or target market. In other words, marketing mix is applied in business to design and offer
a right product with right price to right customers at right place at right time or right market
situation communicating through right promotion tools.
d)
E-commerce relates with selling products and services electronically i.e. through internet all
marketing efforts to inform, promote, and sale of products. It is a part of e-business which is done
through online marketing. Consumers place order for the product and services and sell them through
internet. The online systems of marketing is becoming popular as direct marketing channel. Internet
as global web of computer network, facilitated by different user friendly user friendly software to
connect business to consumers in general. E-mail has also contributed in making communication
link between the company and consumers.
e)
Push and pull strategy is one of the factor affecting promotion mix of a company. A good
promotion blend is very important for successful marketing. The promotion mix is also affected by
whether companies adopt push or pull strategy.
In push strategy the promotion is directed at the marketing intermediaries (sales force). The
manufacturer persuades wholesales to carry the product, while wholesalers convince retailers to sell
the product to consumers and retailers pushes the products to consumers by convincing at the time
of sale and displays.
But under pull strategy the producer build consumer awareness through mass advertising. Retailers
place orders to wholesalers and wholesalers to manufacturer to meet customer demand. Consumer
promotions are stressed as demand comes from down to upward direction.
f)
Sales promotion involves marketing activities, other than advertising, publicity, or personal selling,
that stimulate consumer purchases and dealer effectiveness. The forms of sales promotion include
trade shows, demonstrations, coupons, rebates, samples, contests, and many additional activities
that bridge personal selling and advertising.
Sales promotion tools are generally short term measures designed to stimulate quicker and greater
purchase of products or services by consumers or traders. The use of sales promotion has been
significantly increasing in the modern business. It is especially due to increase in competition is the
market. Therefore, sales promotion is also called as ―aggressive selling‖.
Sales promotion tools are directed resellers or channel members, and sales force of the company.
Therefore, those are three methods of sales promotion namely:
i. Consumer promotion,
ii. Trade or Dealer promotion, and
iii. Sales force promotion.
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CAP II Examination June 2010
Section –―Business Communication‖
8. As per the vacancy announcement appeared in an English daily by the Bank of Asia, you had submitted
your covering letter and a resume for the post of an Accountant. However, you have not heard from them
till date. Now, write a sample follow up letter to the bank. 10
Answer:
Kathmandu-14,
Kalimati
11 April 2010
Dear Sir/Madam,
I submitted a letter of application and a resume earlier this month for the position of an accountant
advertised in The Himalayan Times dated 12 January 2010. Till date, I have not heard from your office. I
would, therefore, like to confirm receipt of my application and reiterate my interest in the job.
I am very interested in working at your bank and I believe that my experience and skills would be an ideal
match for this position.
If necessary, I would be glad to resend my application materials or to provide with any further information
you might need regarding my candidacy. I can be reached at 977-01-4765897 or mail2dinesh@gmail.com.
I look forward to hearing from you.
Thanking you,
Yours sincerely,
Dinesh Wagle
9. What are the barriers to effective interpersonal communication? Suggest some of the ways to overcome
them (5+5=10)
Answer:
Communication plays a major role in employer-employee relationships on farms. It also affects the
relationships among family members on the management team. Although effective communication does
not guarantee success of a farm business, its absence usually assures problems. A communication problem
may soon become a crisis or it may linger on for years.
Problems with any one of the components of the communication model can become a barrier to effective
communication. Here are some of the barriers to effective interpersonal communication. The barriers can
be treated with some means of solution. Each of these barriers are discussed below with their solutions.
2451
Suggested Answers of BC and Marketing
1. Muddled messages
Muddled messages are a barrier to communication because the sender leaves the receiver unclear about the
intent of the sender. Muddled messages have many causes. The sender may be confused in his or her
thinking. The message may be little more than a vague idea. The problem may be semantic, e.g., note this
muddled newspaper ad: "Dog for sale. Will eat anything. Especially likes children. Call 888-3599 for more
information."
Feedback from the receiver is the best way for a sender to be sure that the message is clear rather than
muddled. Clarifying muddled messages is the responsibility of the sender. The sender hoping the receiver
will figure out the message does little to remove this barrier to communication.
2. Stereotyping
Stereotyping causes us to typify a person, a group, an event or a thing on oversimplified conceptions,

beliefs, or opinions. Thus, basketball players can be stereotyped as tall, green equipment as better than red
equipment, football linemen as dumb, Ford as better than Chevrolet, Vikings as handsome, and people
raised on dairy farms as interested in animals. Stereotyping can substitute for thinking, analysis and open
mindedness to a new situation.
Stereotyping is a barrier to communication when it causes people to act as if they already know the
message that is coming from the sender or worse, as if no message is necessary because "everybody
already knows." Both senders and listeners should continuously look for and address thinking, conclusions
and actions based on stereotypes.
10. Wrong channel
"Good morning." An oral channel for this message is highly appropriate. Writing "GOOD MORNING!"
on a chalkboard, in the machine shed is less effective than a warm oral greeting. On the other hand, a
detailed request to a contractor for construction of a farrowing house should be in writing, i.e., non-oral. A
long conversation between a pork producer and a contractor about the farrowing house construction, with
neither taking notes, surely will result in confusion and misunderstanding. These simple examples illustrate
how the wrong channel can be barrier to communication. Variation of channels helps the receiver
understand the nature and importance of a message.
Simple rules for selection of a channel cause more problems than they solve. In choice of a channel, the
sender needs to be sensitive to such things as the complexity of the message (good morning versus a
construction contract); the consequences of a misunderstanding (medication for a sick animal versus a
guess about tomorrow's weather); knowledge, skills and abilities of the receiver (a new employee versus a
partner in the business); and immediacy of action to be taken from the message (instructions for this
morning's work versus a plan of work for 1994).
4. Language
Words are not reality. Words as the sender understands them are combined with the perceptions of those
words by the receiver. Language represents only part of the whole. We fill in the rest with perceptions.
Trying to understand a foreign language easily demonstrates words not being reality. Being "foreign" is not
limited to the language of another country. It can be the language of another farm. The Gerken house may
be where the Browns now live. The green goose may be a trailer painted red long after it was given the
name green goose. A brassy day may say much about temperature and little about color.
Each new employee needs to be taught the language of the farm. unless the farm's language is learned, it
can be as much a barrier to communication as a foreign language.
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5. Lack of feedback
Feedback is the mirror of communication. Feedback mirrors what the sender has sent. Feedback is the
receiver sending back to the sender the message as perceived. Without feedback, communication is one-
way.
Feedback happens in a variety of ways. Asking a person to repeat what has been said, e.g., repeat
instructions, is a very direct way of getting feedback. Feedback may be as subtle as a stare, a puzzled look,
a nod, or failure to ask any questions after complicated instructions have been given. Both sender and
receiver can play an active role in using feedback to make communication truly two-way.
Feedback should be helpful rather than hurtful. Prompt feedback is more effective than the feedback saved
up until the "right" moment. Feedback should deal in specifics rather than generalities. Approach feedback
is a problem in perception rather than a problem of discovering the facts.
6. Poor listening skills
Listening is difficult. A typical speaker says about 125 words per minute. The typical listener can receive
400-600 words per minute. Thus, about 75 percent of listening time is free time. The free time often
sidetracks the listener. The solution is to be an active rather than passive listener.
One important listening skill is to be prepared to listen. Tune out thoughts about other people and other
problems. Search for meaning in what the person is saying. A mental outline or summary of key thoughts
can be very helpful. Avoid interrupting the speaker. "Shut up" is a useful listening guideline. "Shut up
some more" is a useful extension of this guideline. Withhold evaluation and judgment until the other
person has finished with the message. A listener's premature frown, shaking of the head, or bored look can
easily convince the other person there is no reason to elaborate or try again to communicate his or her
excellent idea.
Providing feedback is the most important active listening skill. Ask questions. Nod in agreement. Look the
person straight in the eye. Lean forward. Be an animated listener. Focus on what the other person is saying.
Repeat key points.
7. Interruptions
A farm is a lively place. Few days are routine. Long periods of calm and quiet rarely interrupt the usual
hectic pace. In this environment, conversations, meetings, instructions and even casual talk about last
night's game are likely to be interrupted. The interruptions may be due to something more pressing,
rudeness, lack of privacy for discussion, a drop-in visitor, an emergency, or even the curiosity of someone
else wanting to know what two other people are saying.
Regardless of the cause, interruptions are a barrier to communication. In the extreme, there is a reluctance
of employees and family members even to attempt discussion with a manager because of the near certainty
that the conversation will be interrupted. Less extreme but serious is the problem of incomplete instructions
because someone came by with a pressing question.
3. Need for communication across cultures: As business and very many things concerned with human
development are getting globalized, communicating across cultures has become indispensable for people
intending to achieve development goals. Besides, cross-cultural aspects of human communication have
greatly impacted national and international trade and commerce.
Justify the above statements with concrete examples. 10

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Need for communication across cultures: In the remote past, when people lived in a closed society,
communication was understood in a narrow sense. Things that were once considered taboos are talked
about freely now. With things changing with the times, it has been strongly felt that no country can survive
without linkage, communication and association with other nations. Korean Peninsula, for example, split
into two countries after World War I- the South and the North – one making the best of its resources-
human, material and technical for material prosperity and global dignity and the other depleting its
resources for gaining military strength. In spite of their long standing enemity, the latter during the time of
food crisis sought assistance (supply of food grains) from the former.
To survive in a world of cross-cultural communication, it is necessary to understand and interpret culture in

a broader dimension. Culture is a way of life through which people understand and interpret the world in a
broad dimension. As cultural diversity is a matter of complexities, culture is wrongly assumed to be the
cause of misconception. This problem can be overcome by trying to understand cultural differences and
differences in the ways of life of people of different parts of the world. Cultural differences make people of
different places behave differently – in eating, in sitting, in walking, in speaking, and in looking into things
and interpreting them in their own ways. These differences might look complicated for people of different
people but in an age of cross-cultural communication, people have to compromise in the process of
globalization of communication. This requires us to consider the following so as to promote cross-cultural
communication.
 People should be culturally intelligent to understand other people‘s ways of life.

 Be mindful of the differences of others‘ cultures
 Be aware of various factors of human relationship between cultural differences.
 Respect others‘ cultural norms and values
 Understand the impact of cultural differences on people‘s non-verbal communication.
 Understand others‘ attitudes and behavior in relation to time, place,etc.
Though the world of business communication is also affected by cross-cultural traits the cultural gap
bridges in money mattes. It is rightly said that when there is the question of money, everyone is of the
same culture.
To conclude, with things changing much faster in a situation of globalization and sophistication, many
cultures have lost their values. Old traditions and customs are dying out. In the process of modernization,
bigger cultures are dominating the smaller ones. But cross-cultural traits will survive against all odds.
11. Identify the characteristics of successful teams (or groups) and explain them briefly. 10
Answer:
The use of teams has been called the ―solution‖ to many ills in the current work place. Someone even
observed that as an acronym TEAM means ―Together, Everyone Achieves More.‖ Yet, many teams do not
work well together. In fact, some teams can actually increase frustration, lower productivity, and create
employee dissatisfaction. Experts who have studied team workings and decisions have discovered that
effective teams share some or all of the following characteristics.
Small Size, Diverse Makeup. For most functions the best teams range from 2 to 25 members, although 4 or
5 is optimum for many projects. Larger groups have trouble interacting constructively, much less agreeing
on actions. For the most creative decisions, teams generally have male and female members who differ in
age, social background, training, and experience. Members should bring complementary skills to a team.

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Paul Fireman, founder of sports shoe manufacturer Reebok, wisely remarked, "If you put five centers on
the basketball court, you‘re going to lose the game. You need, we all need, people of different
backgrounds. Diverse teams can produce innovative solutions with broader applications than homogeneous
teams can".
Agreement on Purpose. An effective team begins with a purpose. Xerox scientists who invented personal
computing developed their team purpose after the chairman of Xerox called for an ―architecture of
information.‖ A team at Sealed Air Corporation developed its purpose when management instructed it to
cut waste and reduce downtime. Working from a general purpose to specific goals typically requires a huge
investment of time and effort. Meaningful discussions, however, motivate team members to ―buy into‖ the
project.
Agreement on Procedures. The best teams develop procedures to guide them. They set up intermediate
goals with deadlines. They assign roles and tasks, requiring all members to contribute equivalent amounts
of team work. They decide how they will reach decisions using one of the strategies shown in the
accompanying Career Coach box. Procedures are continually evaluated to ensure movement toward
attainment of the team‘s goals.
Ability to Confront Conflict. Poorly functioning teams avoid conflict, preferring sulking, gossip, or
backstabbing. A better plan is to acknowledge conflict and address the root of the problem openly.
Although it may feel emotionally risky, direct confrontation saves time and enhances team commitment in
the long run. To be constructive, however, confrontation must be task oriented, not person oriented. An
open airing of differences, in which all team members have a chance to speak their minds, should center on
strengths and weaknesses of the different positions and ideas—not on personalities. After hearing all sides,
team members must negotiate a fair settlement, no matter how long it takes. The best decisions are based
on consensus: all members agree.
Use of Good Communication Techniques. The best teams exchange information and contribute ideas freely
in an informal environment. Team members speak clearly and concisely, avoiding generalities. They
encourage feedback. Listeners become actively involved, read body language, and ask clarifying questions
before responding. Tactful, constructive disagreement is encouraged. Although a team‘s task is taken
seriously, successful teams are able to inject humor into their interactions.
Ability to Collaborate Rather than Compete. Effective team members are genuinely interested in achieving
team goals instead of receiving individual recognition. They contribute ideas and feedback unselfishly.
They monitor team progress, including what‘s going right, what‘s going wrong, and what to do about it.
They celebrate individual and team accomplishments.
Shared Leadership. Effective teams often have no formal leader. Instead, leadership rotates to those with
the appropriate expertise as the team evolves and moves from one phase to another. Many teams operate
under a democratic approach. This approach can achieve buy-in to team decisions, boost morale, and create
fewer hurt feelings and less resentment. But in times of crisis, a strong team member may need to step up
as leader.
12. Write short notes on the followings (Any Two): (2×5=10)

a) Organizing information in reports
b) Effective presentation of information
c) Difference between formal and informal communication

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Answers:
a) Organizing information in reports
A report may be defined as formal and factual statement describing a state of affairs on what happened and
how it happened. In other words, a report is a detailed description of a problem or a situation, findings of
investigation with conclusions and recommendations. A report is produced after a study or a research work
- be it or large or small scale - has been carried out. A report should be well formed to become cohesive
and coherent. This is to say, writing a report entails organizing information in a systematic way. It includes:
i) an orderly presentation of facts

ii) close observation of facts with an investigative approach
iii) collection of information supported by evidences
iv) verifying reliability of information
v) drawing on conclusion,
vi) suggesting recommendations
b) Effective presentation of information
Every piece of communication dessiminates some kind of information – formal or informal, complete or
incomplete. The way and style of presentation of information varies with the receiver - individual, group or
public. Matter (contents) and manner (way and style) count much in an effective presentation. The
presentation of information needs to consider the following points:
i) the contents of the message (information)
ii) clear objective of presentation of the message
iii) the identification of the recipient of the information- the audience
iv) choice of appropriate channel of communication for the presentation
v) the relationship between the presenter and the audience, the level of understanding of the two, geo-
physical conditions in which the information is presented
vi) language and style of presentation: using short, simple and understandable language using simple
and impressive style
vii) application of appropriate presentation skills.
c) Difference between formal and informal communication
Formal communication, also called mainline operational communication takes place in a transparent
manner. It is hierarchical and structured and functions under certain organizational rules and regulations.
Much of the organizational communication is formal.
Official correspondence, policy plans, manuals, employee bulletins, newsletters, directive, memos, letters,
reports, proposals, etc. are examples of formal communication.
Informal communication is defined as the channel of communication which does not follow any prescribed
codes of conduct or the rules and regulations. To simplify, an informal communication could be a
discussion or simple talk between two different organizational heads, two senior managers of an
organization. Such talks and communication cannot affect the existing rules and regulations.
Both forms of communication have their advantages as well as disadvantages.

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Section –“MARKETING”
6. Read the following case carefully and answer the questions that follows: (4×2.5=10)
Bimala Giri, migrated from Dhading District, has enough knowledge about cooking varieties of
pastries, Momo and Chowmin. She survives with two small children. So she decided to open a small
pastry and tea shop in the periphery of Global College and KCMIT, Baneswor, hoping that a large
number of students may come to the shop for varieties of pastry, coffee and tea. She bought the
necessary equipments for kitchen and shop with a cash outlay of Rs. 50,000. She managed for
furniture and furnishings. She decided to name her shop as ―Hazur Ko Khaja Ghar‖. She maintained
neat and clean in the shop to satisfy the consumers. Beside it, her behaviour with the consumers was
also impressive.
The business has been operating for the last ten months. Both sales volume and value increased
satisfactorily. The major consumers are college students, who drop in for varieties of pastry, tea and
coffee. Occasionally, professors come by with their friends for pastry and a cup of tea. With the passes
of time, a large number of pedestrians also started coming to the shop for tea, coffee and pastries.
Local households and shop-keepers also come to purchase pastries over the counter. Consumers are
satisfied with her services and treatment. But many students, pedestrians and shopkeepers frequently
asked for keeping Momo and Chowmin dishes in the shop. During the vacation period, Bimala noticed
considerable drop in the sales. Though she has knowledge about cooking Momo and Chowmin, she
needs to make additional investment of about Rs. 25,000 for managing Momo and Chowmin in the
shop, for which she has to take loan from others. This money is necessary not only to purchase
necessary equipments and furniture but also needs to hire more space in the rented house.
Actually, Bimala hesitates to keep additional items like Momo and Chowmin dishes, because of
limited managerial and financial capacity. She was, to some extent, satisfied with the existing business
flow and profit margin. But if the demanded items could be added, she is confident that she would be
able to earn more money. On the other, if she avoids keeping the demanded items and insists only in
the current items, it may become difficult for her to retain the current customers and expand volume
and value of business in future.
Bimala is now in a big problem, because she does not know about the modern marketing concept and
marketing techniques; so she is searching for persons who can provide her an expert advice in
marketing field. As a marketing student, you are asked to give answers to the following questions for
the improvement of her business.
Questions:
a) Identify the target market of Bimala‘s business with reason.
b) Who are the customers of Bimala‘s shop and why?
c) What are the various needs of the customers?
d) Should Bimala keep the additional dishes in her shop as per demand of the students, pedestrians,
and shop-keepers? Or, continue the existing tea, coffee, and pastry items only? Why? Give answer
with justifiable reasons from marketing point of view.
Answers:
(Given below are the hints to the above questions. Students are expected to elaborate the hints to
arrive at a full solution)

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a) Students of Global College and KCMIT are the target market, because Bimala started her business
focusing on them.
b) Students, pedestrians, Professors, shopkeepers, local households, offices of the location are the
customers of Bimala‘s business, because they drop to the shop for the purchase and consumption of
tea, coffee, and pastries.
c) The various needs of the customers are tea, coffee, and varieties of pastries.
d) As a marketer I should suggest Bimala to add the demanded items – momo and chowmin. This is
because; marketing is a customer-oriented philosophy of business. She should address the demand of
the customers and should try to satisfy them by offering as per their demand.
7.
a) Summarize the economic and demographic environments in Nepal. 5
b) Point out the components of marketing information system and explain briefly the Marketing
Decision Support System. (2+3=5)
Answers:
a) The following Para explains the economic and demographic environments in Nepal-
Economic Environment:
Nepal is an agrarian country. Contribution of agriculture sector to the country‘s real GDP and
employment is high. Farming is still highly labour-intensive.
Recently, marketing opportunities for services sectors like computer software, insurance, banking,
education, hospitals and nursing homes have been fostering rapidly with bright future. Economically,
Nepal hopes from the SAFTA & WTO regimes.
Demographic Environment:
According to Population Census 2001, Nepal has 23.2 million people and is increasing at the rate of
2.05% annually. Both male and female occupy equal status in size. About 90% of the total population
lives in rural area. Though the Nepalese market is characterized by rural market, the marketing
activities are heavily concentrated in urban area due to the difficult topography of the country.
The demographic character of Nepal shows that the market structure of the country is diverse in
nature.
b) The components of marketing information system includes –

i. Internal Records System;
ii. Marketing Intelligence System;
iii. Marketing Information Processing System; and
iv. Marketing Information Analysis System or Marketing Decision Support System (MDSS)/
The following Para explains about MDSS:

Analytical system is a set of statistical or mathematical tools and decision models that help the
marketing managers in analyzing data gathered or supplied through the sub-systems of the MIS and
making rational decision. Analytical system helps marketers to make decisions on the problems by
telling the truth about the situations. In other words, analytical systems allow a firm to ask, "Why did
that happen?" and "What will happen if……..?" Mathematical and/or statistical tools and decision
models are used to solve several marketing problems such as media selection problems to evaluate
new product acceptance o weigh sales and pricing alternatives, and so forth. Therefore, analytical
systems are also called as "marketing decision support systems". Ultimately, the MDSS serves as a
―Data Bank‖.
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8.
a) Give the meaning of a product and explain the feature of industrial products. (2+3=5)
b) How is marketing mix controllable and tactical in nature? 5
Answers:
a) A product is both what a seller has to sell and buyer has to buy as a most important part of
marketing mix of a company. Products are the physical goods, services, events, persons, places, ideas,
information, organizations, etc. A product is anything that can be offered to a market to satisfy a need
or want. Tangible or intangible, durable or nondurable, consumer or industrial type and features
differentiate the products.
Product is the first and most important element of the marketing mix. A good product mix, brands
packaging and labeling all are very important. Products can be classified in several ways. In terms of
use products can be broadly classified in two groups namely: Consumer goods and industrial goods.
As demanded by the question only the features of industrial products of industrial products are
mentioned here:
Products that are destined to be sold primarily to use in producing other goods or rendering services or
operating a business institution are industrial products. Material and parts, capital items or suppliers
and business services related products comes under this category.
Features of industrial products are:
- Large scale purchase but fewer buyers
- Systematic and routine purchase
- Role of professional purchase procedure is important
- Customer supplier long fear relations
- Marketing is geographically concentrated
- Some are expensive, capital expenditures
- Durability, brand, direct purchase differs to product types
The above points are to be briefly explained by the students.
b) Controllable
Marketing mix is a set of product, price, place and promotion, which are used to pursue the firm‘s
marketing objectives in the target market. Marketing tools, techniques, strategies, activities, etc. are
decided by the management. So, these are controllable in spite of being flexible in nature as per the
flexibility that occurs in the marketing environment. Marketing mix consists of four components that
can separately be named as product mix, price mix, place mix and promotion mix.
Product mix Price mix Place mix Promotion mix
 Product attributes  Discounts,  Channels  Advertising
 Product variety with allowance  Channel  Sales
quality  Pricing structures promotion
 Product lines and objectives  Channel  Personal
components  Pricing policies dynamics selling
 Product mix and  Pricing methods  Channel conflict  Publicity
innovation  Pricing management  Public
 Product branding, strategies  Physical relations
packaging, labeling  Pricing terms distribution and  strategies
 Service product and conditions logistics
strategies

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The four Ps of marketing mix are tactical in nature of their uses. That means, the firm needs to use its
own techniques while implementing them for objective achievement. The decided mix is used as per
the situation of competition being tricky.
o Normal
o Intensive (national, global)
o Throat-cut
9.
a) State and explain the methods of cost-based pricing. 5
b) Draw channel levels structure for consumer market and explain them in that structure. 5
Answer:
a) Methods o f cost-based pricing
This pricing method includes mark-up pricing, target return pricing and BEP pricing.
Mark up pricing method

Mark-up price is that selling price which any manufacturer/marketer decides by expecting a certain
percentage of on sales of each item. It does so to recover costs and expected profit as soon as possible.
o MUP = Unit cost / (1 – desired profit percent)
Target return pricing method

When the firm determines price that would yield its target rate of return on investment, it is known as
target return pricing. This can be determined by
o TRP = Unit cost +(Desired profit % X Investment)/Assumed total sales
Breakeven pricing method

According to this method price in determined at that point where revenue equals total cost. This point
is called Break Even Point or BEP. The BEP can be computed in two ways i.e. In terms of units and in
terms of money value.
o BEP in units= Total fixed cost / (TRP – Variable cost per unit)
o BEP in Rs. = BEP in units X TRP
b) Channel levels structure for consumer market
Manufacturer
Agent
Retailer Whole-
saler
Whole-saler
Retailer Retailer
Consumer

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The major channel participants or components of channel structure of consumer market are
producers/manufacturers, agents, wholesalers and retailers. There are four channel levels structure
alternatives for the distribution of goods to consumer markets, ranging from a zero level to three
levels. Under zero level structure, the manufacturer may distribute the merchandise directly to
consumers by passing all marketing intermediaries. Under one level structure, the manufacturer may
use retailers to reach consumers. In two levels structure, the product may reach consumers through
wholesalers and retailers. Similarly, in three levels structure, the manufacturer may use the agents to
contact and execute the sales transaction to different categories of buyers.
10. Briefly explain any five of the followings (5×2=10)

a) Promotion objectives
b) Post purchase behavior
c) Psychological discount pricing strategy
d) Types of labels
e) High involvement purchase.
f) E-marketing
g) Importance of physical distribution system.
Answers:
a) Promotion objectives:
Promotion seeks to stimulate dormant needs of target markets. Promotion performs the major role of
communicating to the target markets. Promotional efforts within a firm include advertising, personal
selling, sales promotion, publicity and public relations. The major objectives of promotion are to
inform, persuade, remind and reassure the market about the organization and its products.
 Informing: The primary task of promotion is to inform the buyers about the product/brand, it‘s
price, availability, utilities and benefits.
 Persuading: Promotion seeks to persuade buyers to make at least one purchase decision in favor of
organization‘s product.
 Reminding: Most promotions seek to constantly remind the buyers about the brand and company
names.
 Reassuring: Promotion also plays the role of reassuring the buyers‘ on the quality and benefits of
the product. It helps in reducing buyers‘ anxiety resulting from cognitive dissonance.
b) Post purchase behavior:

A consumer has to pass through six stages to complete the buying process. Post purchase behavior is
also one major stage of the buying process. After having purchased the product, it may be possible that
the buyer may experience some restlessness in his mind. The marketer‘s job does not end when the
product is brought. After purchasing the product, the consumer will be satisfied or dissatisfied and will
engage in post purchase behavior of interest to the marketer. In this stage, consumer will compare their
expectations before purchasing the product and the product‘s perceived performance. If the product
falls short of expectations, the consumer is disappointed, if it meets expectations, the consumer is
satisfied, if it exceeds expectations, and the consumer is delighted.
c) Psychological discount pricing strategy:

Psychological discount pricing encourage purchases on emotional responses. A superficial discounting
price is charged by showing heavy discount for consumers. Making buyers feel that they are getting
high priced things at very low price. In fact, they are deceived.
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d) Types of labels: There are mainly three types of labels i.e.

Brand label: It is the simplest form of label in which only the brand name appears on it. For example,
Nike, Levi‘s, brand names are either stamped or tagged to the product.
Descriptive label: This type of label provides information on the quality or grade of the product along
with the brand name. They are mostly used in perishable and semi-perishable products such as fruits
Grade label: This is more elaborate than brand and grade labels. It contains full description of the
products and their ingredients including their uses, operation methods, precautions etc.
e) High Involvement Purchase:

The complexity of the buying process is affected by whether the product to be bought is of high
involvement or low involvement. In high involvement purchase, the consumer is prepared to invest
more time, resources and efforts. In this situation, the consumer lacks full information about the
product, the amount of money involved is large, the product has high social importance and the
product is perceived to give long-run benefits. Normally, the purchase of a car or a house is high
involvement.
f) E-Marketing: E-marketing is the newest channels for direct marketing based upon electronic
devices. E-business describes a wide variety of electronic platforms, such as the sending of purpose
orders to suppliers via electronic data interchange or extranets, the use of fax & emails to conduct
transactions, the use of ATM and smart Cards to facilitate payment and the use of Interest and online
services all these can be termed as business in a ― market space‖.
The internet today functions as an information source, an entertainment source, a communication
channel, a transaction channel, and every a distribution channel. The way telemarketing has become a
major direct marketing tool. Under direct marketing as an interactive method, especially electronic
marketing is becoming very popular and is showing explosive growth.
g) Importance of physical distribution system:

The importance of physical distribution system – Physical distribution refers to the management of
physical movement of goods from production point to consumption points for final consumption of
goods and services. The contribution of physical distribution include: -
i. It performs several distribution-related services like arrangement of transportation, storing and
warehousing, order processing, materials handling, etc; so it helps maximizing services to the
customers to supply right product at right time;
ii. It helps distributing goods more safely by adopting appropriate materials handling techniques;
iii. It attempts to use appropriate channel of distribution so it helps minimizes the distribution time and
cost; and
iv. It helps supplying necessary goods to the right market place.

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Suggested Answers of Business Communication & Marketing
Chartered Accountancy Profession II Examination – December 2009
Marks
All Questions are compulsory.
Section -'A'
9. The process of communication does not always run smooth. It often gets adversely disturbed
by unwanted things, happenings, interferences, interruptions, etc. resulting in
communication failure between the sender and the receiver. Such elements are called
communication barriers - (a) physical and (b) mental.
Assume that you are the Chief Editor of a local English Daily Newspaper. Your job involves a
lot of communicating with people- your own reporters and workers, people of other
organizations, and the conscious people. The job is not easy because it is often affected by
miscommunication caused due to the communication barriers. Now, mention, with
examples, five effective ways of overcoming them. 10
Answer 1:
The Chief Editor of the Local English Daily is conscious of the fact that communication often
gets disturbed or adversely affected by unwanted things, happenings, interferences,
interruptions, etc. resulting in communication failure between the sender and the receiver.
Such elements are called communication barriers - (a) physical and (b) mental. He has
identified the following as communication barriers. A number of factors can be alleged as
causes of communication barrier. They are called inappropriate filters
Major communication barriers include: a. noise, b. lack of planning, c. semantic variations,

d. cultural barriers, e. wrong assumptions, f. emotion, g. day dreaming, h. information
overload, i. socio-psychological obstructions, j. poor attention. k. poor retention. l. pre-
occupied brain, m. communication leakage n. hearing weakness o. cross -cultural
communication barriers, and p. inadequacy of communication tools and materials
Apart from the above, there are some others known as organizational barriers.
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(a) Long chain of command. With the long chain of command, distance between the upper
and lower levels of organizational people increases, resulting in the distortions,
disturbances and distractions in various directions of communication.
(b) Congested room partition, narrow passages between rooms, inconvenient disposition of
furniture, gap and distance between staff members cause organizational
communication.
c) Use of inappropriate and unusable medium hindering face-to-face communication and

easy delivery of messages is another barrier.
The above barriers are classed into such types as i. Physical and mechanical barrier, ii.
Organizational barrier, iii. Socio-psychological barrier, iv. Psychological
Ways of overcoming communication barriers:
Barriers though obstruct the flow of communication, are not problems that defy solutions.
The following are some of the ways and means of overcoming communication barriers. .
(a) Physical barriers caused by physical disturbances can be overcome through temporary
avoidance of communication. Stop talking till the noise continues, or waits till you reach
your destination.
(b) Understanding the nature of socio-cultural barriers before communicating,
(c) Fear to face communication is a barrier, which can be overcome by practicing speaking
before the mirror. Assassinated U.S. President Abraham Lincoln did this.
(d) Selecting appropriate channel for communicating ideas and feelings.
(e) Emphatic listening. Delivered message should be received in a proper way through
proper analysis and interpretation of the facts.
(f) Listening should be unbiased.
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(g) Avoiding complex feelings. The listener should think, “I may be wrong and the speaker
may be right.”
(h) Creating proper communication environment.
(i) Matters to be communicated should be planned.
In addition to the above:
(j) Organizational barriers, which include i. long chain of command, ii. Poor layout and iii.
inappropriate medium, can be overcome by shortening scalar chain and appropriate
layout
(k) Socio-psychological barriers which occur due to emotion, poor attention and poor
retention, wrong assumptions and evaluation of things, status consciousness,
perceptual distortion and attitudes and behavior could be minimized through openness
of mind, free and frank expression of views.
Physical barriers, which include noise – traffic and street noise, and any other kind of noise
and noise caused by technical problems, can be controlled by stopping communication for a
while and by correcting the technical problems
10. In the light of the fact that today’s workplace is increasingly getting diversified in terms of
culture, language, ethnicity, religion, etc. Discuss both the benefits and the challenges
resulting from such a diverse working environment. Also, suggest some concrete ways in
which such challenges can be sorted out in order to create a more congenial working milieu. 10
Answer 2)
Workplace diversity refers to varieties of differences between people in an organization. That
sounds quite simplistic, but diversity encompasses race, gender, ethnic group, age, personality,
cognitive style, tenure, organizational function, education, background and more.
Diversity not only involves how people perceive themselves, but how they perceive
others as well. Those perceptions affect their interactions. For a wide assortment of
employees to function effectively as an organization, human resource professionals need
to deal effectively with issues such as communication, adaptability and change. Diversity
will increase significantly in the coming years. Successful organizations recognize the
need for immediate action and are ready and willing to spend resources on managing
diversity in the workplace now.
Benefits of workplace diversity:
An organization’s success and competitiveness depends upon its ability to embrace

diversity and realize the benefits. When organizations actively assess their handling of
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workplace diversity issues, develop and implement diversity plans, multiple benefits are
reported such as:
 Increased adaptability:
Organizations employing a diverse workforce can supply a greater variety of solutions to

problems in service, sourcing, and allocation of resources. Employees from diverse
backgrounds bring individual talents and experiences in suggesting ideas that are flexible
in adapting to fluctuating markets and customer demands.
 Broader service range:
A diverse collection of skills and experiences (e.g. languages, cultural understanding)

allows a company to provide service to customers on a global basis.
 Variety of viewpoints:
A diverse workforce that feels comfortable communicating varying points of view

provides a larger pool of ideas and experiences. The organization can draw from that pool
to meet business strategy needs and the needs of customers more effectively.
 More effective execution:

Companies that encourage diversity in the workplace inspire all of their employees to perform
to their highest ability. Company-wide strategies can then be executed; resulting in higher
productivity, profit, and return on investment.
Challenges of diversity in the workplace:
Taking full advantage of the benefits of diversity in the workplace is not without its
challenges. Some of those challenges are:
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 Communication:
Perceptual, cultural and language barriers need to be overcome for diversity programs to
succeed. Ineffective communication of key objectives results in confusion, lack of
teamwork, and low morale.
 Resistance to change:
There are always employees who will refuse to accept the fact that the social and cultural
makeup of their workplace is changing. The “we’ve always done it this way” mentality
silences new ideas and inhibits progress.
Successful management of diversity in the workplace:
Diversity training alone is not sufficient for your organization’s diversity management
plan. A strategy must be created and implemented to create a culture of diversity that
permeates every department and function of the organization. The following points can
be recommended for the successful management of diversity:
Assessment of diversity in the workplace: Top companies make assessing and evaluating
their diversity process an integral part of their management system. A customizable
employee satisfaction survey can accomplish this assessment for your company
efficiently and conveniently. It can help your management team determine which
challenges and obstacles to diversity are present in your workplace and which policies
need to be added or eliminated. Reassessment can then determine the success of you
diversity in the workplace plan implementation.
Development of diversity in the workplace plan: Choosing a survey provider that

provides comprehensive reporting is a key decision. That report will be the beginning
structure of your diversity in the workplace plan. The plan must be comprehensive,
attainable and measurable. An organization must decide what changes need to be made
and a timeline for that change to be attained.
Implementation of diversity in the workplace plan: The personal commitment of

executive and managerial teams is a must. Leaders and managers within organizations
must incorporate diversity policies into every aspect of the organization’s function and
purpose. Attitudes toward diversity originate at the top and filter downward. Management
cooperation and participation is required to create a culture conducive to the success of
your organization’s plan. On top of this, we can ward off change resistance with inclusion
by involving every employee possible in formulating and executing diversity initiatives
in the workplace. We can also foster an attitude of openness in our organization by
encouraging employees to express their ideas and opinions so as to attribute a sense of
equal value to all. Promoting diversity in the leadership positions and making use of the
diversity training will also be helpful.
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Due to globalization and free market policies almost all around the globe, our workforces
have become increasingly diverse. Organizational success and competitiveness will
depend on the ability to manage diversity in the workplace effectively
11. What is a proposal? A Nepali non-governmental organization working in the field of poverty
alleviation of rural peasants has lately appointed you as the Director to head the
organization’s Resources Department. Your tasks primarily include writing proposals to
international funding organizations in order to carry out the activities launched by the
organization. Prepare an outline of such a funding proposal and briefly discuss each of the
parts. 10
Answer
A proposal is a written persuasive document asking for financial assistance to implement

a project. It is not just a shopping list of things we want. It must rather justify each item
in the list of things we want, so that a donor agency can decide if it wants to provide
some or all of those things. We must know and be able to communicate exactly what we
want to do with these things, and that is why we should design a project to carry out what
we want to achieve.
It is important to carefully formulate and design our project. It is equally important to

write a proposal which will attract the necessary funding. Proposal writing is a skill
which requires some knowledge and practice. Its main job is to inform and to convince. I
should clearly indicate how and when the project will end and become self-supporting.
Proposals should be neat and tidy and it should not contain any extraneous information.
Outline of a proposal:
i) Title Page: This is a single page i.e. the front cover of the proposal. It should
include date, project title, location of the project, name of the organization and
any necessary single line information.
ii) Background: this section is expected to answer why your project is needed. It
is here where we give a description of the situation and focus on the factors
which prompted the formulation of our proposed project. The first thing the
background does is to identify the problem. That is to say, it must name the
problem and locate it. It also indicates the target groups or beneficiaries.
Everything in this section should be justification to approve the project and
the requested funding assistance.
iii) Objectives: The objective of the project should be to solve the problem
described in the background. They should therefore relate to the previous
chapter by stating what is the solution to the above stated problems. We need
to develop a set of general goals and specific objectives.
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iv) Beneficiaries: In this chapter we describe the beneficiaries or target groups in

some detail. We may also add indirect or secondary beneficiaries. This can be
an expansion of the topic mentioned in our background section.
v) Targets and activities: This chapter identifies the inputs in our project, which
means the resources such as cash, personnel and actions we will put into our
project.
vi) Schedule: In this section we describe in sequence the activities we plan in
order to achieve our objectives. If we can be so specific as to give dates, even
if approximate, so far the best.
vii) Profile of the organization: this section describes the organization and
management structure needed to carry out the activities described above.
Diagrams can be very useful in this. We also describe in brief the goals and
activities of the organization. The mention of the organization’s members and
human resources will also prove to be an asset.
viii) Costs and benefits: The chapter that deals with the costs and benefits is not the
same as a line by line budget with numbers indicating amounts of money. It
should be analytical and narrative relating to the previous chapters. It should
also discuss those budget lines that mat need explanation.
ix) Monitoring: The monitoring should be done an overseeing committee
comprising the representatives of the locals. Organization and the donor
agency.
x) Reporting: In any agency-funded project, accounting and accountability are
very important. Our reporting should evaluate the progress of the project
while it is underway as it will help us and our donors to see the
accomplishments and the choices available for future action. Reports should
be prepared and submitted optimally every month. The final report include the
same topics as the monthly reports including the lessons learnt and a section
indicating the impact of the project on the target community and the
surrounding areas.
xi) Detailed budget: Each line on our detailed budget should have the total costs
for one budget category. The lines should be grouped into similar kinds of
costs. If possible who should distinguish non-expendable items from the
expendable ones.
xii) Abstract: This is the part on which a potential donor will read and make that
vital preliminary decision: whether or not to seriously consider assisting. This
should not be written until all the above sections are written. We should think
of it as a concise summary and conclusion.
12. What are the techniques used to prepare a resume for computer scanning? 10
Answer
A computer scannable or online resume contains hypertext links to work samples of a
portfolio of additional information. It can be viewed whenever it is convenient for an
employer, and it can be seen by many individuals in an organization without circulating
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a paper copy. Although a scannable resume may look similar to traditional print resume,
the scannable resume needs some special care and techniques in its design:
• Avoid punctuation as much as possible
• Avoid vertical and horizontal lines, graphics, and boxes
• Do not fold or staple
• Use only those abbreviations that are familiar with your field of study
• No piece of punctuation should ever touch a word (Punctuation can affect the
employer’s ability to find matching terms in a keyword search).
• Use fonts like Times New Roman, New Century, Courier, Helvetica, and sometimes
Palatino
• Font size should be between 10-12
• Avoid fancy font styles such as italics, underline, and shadows.
• Boldface and CAPITAL letters are acceptable provided that the letters do not touch
each other
• Provide white space between words
• Avoid condensing the spaces between letters and lines
• Use nouns and noun phrases instead of active verbs
• Incorporating words that are commonly used within the industry and indicate your
personal work skills increase the chances of having your resume read.
13. Write short notes on the followings (Any Two): (2×5=10)

a) Conflict resolution
b) Secondary and elementary data in data collection
c) Long report and short report
Answer
a)
In many cases, conflict in the workplace just seems to be a fact of life. Furthermore, the
head of an organization has to come across such situations where different people with
different goals and needs come into conflict. If not managed, the conflict may result in
intense personal hostility that will ultimately have repercussions on the organization’s
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output. On the other hand, the successful management of conflict will result in better
output.
Hence, the fact that conflict exists, is not necessarily a bad thing. As long as it is resolved
effectively, it can lead to personal and professional growth. The conflict should be
understood in terms of the dynamics of progress. In many cases, effective conflict resolution
skills can make the difference between positive and negative outcomes. If conflict is
managed successfully, many problems that it has brought to the surface can be resolved, on
top of other benefits that we might not at first expect:
 Increased understanding: The discussion needed to resolve conflict expands people's

awareness of the situation, giving them an insight into how they can achieve their own
goals without undermining those of other people.
 Renewed team spirit: When conflict is resolved effectively, team members can develop
stronger mutual respect and a renewed faith in their ability to work together.
 Improved self-knowledge: Conflict pushes individuals to examine their goals in close
details, helping them understand the things that are most important to them,
sharpening their focus and enhancing their effectiveness.
Nonetheless, if conflict is not handled effectively, the results can be damaging.

Conflicting goals can quickly turn into personal dislike. Teamwork breaks down.
Talent is wasted as people disengage from their work. And it's easy to end up in a
vicious downward spiral of negativity and recrimination. If we want to keep our
organization working effectively, we need to stop this downward spiral as soon as we
can.
b) The first one refers to the data already made available in the form of books, previous
records made during research and investigation.
The second one refers to fresh and new data collected during research and investigation.
c) Long reports: The length of the report depends upon the contents. Thicker the contents,
longer the report.
a. Long reports are written after detailed investigation and analysis of issues with
necessary activities towards ascertaining reliable facts. They include TOR, the
guidelines provided by the authority.
b. Action taken: involves fact-finding activities on which the report will be based.
c. Findings: Including findings ascertained after investigation.
d. Analysis: Impersonal, objective analysis of facts.
e. Conclusion: Drawing conclusion after presentation of factual contents
f. Recommendations: Recommending suggestive measures for improvement.
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Short reports: They differ from long ones in many reports. .
a. As the term implies, short reports are short in length.

b. They consume less time then the long reports
c. They may be written at the leisure time.
d. They may not need highly skilled manpower
e. They are less content-loaded
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Section -'B'
6. Read the following case carefully and answer the questions that follows:
Sony, a multinational corporation based in Tokyo, Japan, stepped into India in early 1995.
Within a couple of months in the same year, it set up its manufacturing unit. The company
makes it presence felt in India through Sony Entertain Television, Sony Music and Sony India
(digital products).
Sony India is facing some major problems, one of which is the emergence of a gray market
(where the products sold through distribution channels that are not authorized by the
manufacturer) for its brands. Severe competition and many brands are quite common. At
present, some distribution and market research related issues exists with Sony India while it
is targeting its sales around 2,000 crores by the end of 2008. Sony likes to develop its
business units in a few cities of USA, Europe and Asia. Since it is a multinational company-
manufacturing multi- product, it has a challenging task to enter new market, increase
market share and sales volume as well as face competition.
Questions:
a) What major problems do you see in the case relating to market potentialities of Sony
India? 5
b) What suggestions would you like to give to Sony India to make its business successful? 5
Answer
Sony India, though a reputed company may have to face numerous problems while entering
to a new market. A few major problems seen in the above case are:
- Emergence of a gray market (Where the company's products sold through

distribution channels that are not authorized by the manufactures.)
- Selection of research agency: in house or external agency?
- Ambitious target: Sales, market share.
- Severe competition: many brands.
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- Distribution related problems: unauthorized dealings.
- Market research related issues.
- Marketing mix and segmentation related problems: product, place, price, and
promotion related issues to compete and achieve goals.
- Entry to many cities of major global markets at a time.
- Other external environmental forces can be the major problems in the potential
market of Sony India.
b) The following suggestions have been made to Sony India on the basis of analysis of the
given case:
- Selection of appropriate research agency, better to select external one.
- Conduct SWOT analysis for market decisions.
- Monitor and control over authorized dealers & intermediaries.
- Launch effective promotional campaigns.
- Establish up dated & reliable Marketing Information Systems.
- Collect sufficient market information & crates better understanding with the
new markets.
Social responsibilities reflecting activities to be given more priority, etc.
7.
a) Differentiate between the production concept and product concept of marketing. 5
b) What is marketing environment? Explain how economic environment affects the
marketing activities. 5
Answer
a) Production concept: an assumption, that consumers will favor those products that are
widely available at affordable price. This concept leads production-oriented firms to
emphasize on achievements of high production efficiency, low costs and mass
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distribution. Product concept: an assumption, that consumers will favor those products
that offer the most quality, performance, or innovative features/attributes. It clarifies
that marketing firms should produce superior products as against competing products
and improve them overtime.
b) Marketing operates in a changing environment. It is shaped by both internal and
external environmental forces. Organizations have to manage their activities within the
given environment to achieve their goals. It consists of different forces that influence
the company’s ability to play with the target market. Threats and opportunities in the
external whereas internal environmental forces provide strengths and weaknesses.
Economic environment forces affect the overall marketing program and systems.
Economic forces are: Economic health, national income, monthly and fiscal policy per
capita income, employment opportunity, inflation, resources, competition, loan
availability capital market, interest rate, and institutional infrastructure etc. These above
factors are the elements of a person’s purchasing power. Marketers have to study
activities, reform policies, implement tactics/policies/strategy in action for the benefit of
own company
8.
a) State and explain the process of new product development. 5
b) How pricing policy should be set for a product or service for the first time? 5
Answer
a) This is eight step process. This process consists of:
i) Idea generation
New product development starts with an idea. New product ideas come from a
variety of sources i.e; customers, scientists, competitors, employees, channel
members, investors, marketing consultants, universities, business journals,
seminars etc. Various techniques have been developed and used for idea
generation i.e; attribute listing, forced relationship, morphological analysis,
need/problem identification, brain storming etc.
ii) Idea screening
The purpose of screening is to drop poor ideas as early as possible. The total
generated ideas are caterogorised into three groups i.e;
Promosing ideas – carried on for further testing
Marginal ideas – stored for future use
Reject ideas – dropped altogether
iii) Concept development and testing
A concept development and testing is the method of trying to guage buyer
interest before actual product has been developed.
iv) Marketing strategy development
After testing, the new product manager must develop a preliminary marketing
strategy plan for inducing the new product into the market.
v) Business analysis
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This stage is essential in the total process of new product development because
several vital decisions regarding the projects are expanded into business
proposal.
vi) Product development and testing
Having completed the business analysis, it moves to R & D or engineering to be
developed into a physical product. In this step, the idea-on-paper is converted
into a physical product and product testing may be conducted through an
expert panel, central location testing and in-home test.
vii) Market testing
After management is satisfied with functional and psychological performance,
the product is ready to be dressed up with a brand name, packaging and put to
a market testing.
viii) Commercialisation
Full-scale production and marketing programs are planned and the product is
launched in the target market. Upto this point in the development process,
management has generally complete control over the product.
b) Pricing policies are guidelines for management of price and pricing from a long-term
perspective. In order to set and formulate pricing policy for a product or service for the
first time, the price setter should select the pricing objectives, determine demand,
estimate costs, analyse competitor’s costs, prices and offers, select a pricing method
and select the final price.
Pricing policies are developed to meet pricing objectives either in-terms of profit or
sales or status-quo orientation and to guide the price setter and/or the marketer to take
a particular course of action in handling the price. The pricing objective reflects the
overall goal of the organization. It describes what an organization wants to through
pricing. Pricing policies are also developed to meet market demand, manufacturing and
marketing cost and competition and set prices by selecting a general pricing method.
Pricing policies can developed and set for a product or service for the first time to make
more effective and competent price in the market.
Best alternatives can be developed from these following four categories.
 Flexible pricing policies
 Geographical pricing policies
 Channel member’s incentive policies
 Product mix pricing policies
9.
a) What is physical distribution? Explain its components. 5
b) What is market information? Briefly explain the marketing research process. 5
Answer
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a) Physical distributions are those activities involved with the storage and movement
of products from the producer to consumer. It is the management of the physical
flow of products and the establishment and operation of efficient flow systems. It
is also called logistics management which aims to provide better consumer
services and faster delivery at reasonable costs.
It helps to minimize the distribution costs.

There are five major components of physical distribution in distribution channel
system:
1) Transportation:
In physical distribution, transportation is major tool for moving the product
from point of origin to the point of consumption. Transportation may include
truck, train, aero plane, ships, human muscles, animal power, electric lines,
pipelines etc.
2) Inventory management:
Inventory management concerned with developing the system of maintaining
and adequate level of product ascertained to meet the consumer demand.
Inventory management is required to control inventory cost such as order
processing, carrying cost etc. For the inventory management economical
measures are the most and managers should be constituted on re-order point
and economic order quantity.
3) Warehousing:
Raw materials and finished product are keep safely in different warehouse.
Goods will be delivered to buyers and materials will be delivered to
manufacturing process.
4) Materials handling:
One of the important components of physical distribution is materials handling.
Materials handling includes all those transportation or movement activities of
material work in process, supplies from suppliers to the producer and the final
products from the producer to consumers or users.
5) Order processing:
Order processing is also an important component of physical distribution. It is
concerned with the firm's ability to deliver the products ordered by the
customers. Order processing includes all those activities involved in collection of
orders from customers; checking them and transmitting sales order information.
b) Information relating to the market- opportunities\threats, environmental changes, all
interrelated and interacting parts and the procedure to generate, analyze, decisions are
to be treated as market information. Many information, different sources, everywhere-
it is the life blood of marketing. Reliable, timely and adequate information is very
important in marketing.
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Marketing research is a process to collect information in solving a specific problem.

Helps to solve business problems, provides alternates, guides in making decisions. A
systematic way of solving the problems. A large amount of money spent by big company’s to
achieve goals through research findings. Marketing research process: (Steps)
1) Define the problem

Problem shouldn’t be defined either too broadly or too narrowly. Answering
these questions define problem appropriately i.e;
What is to be researched?
Why is it to be researched?
2) State objectives
In this step, the research objectives must be clearly stated. It should be specific
and precise.
3) Develop research plan

This step of marketing research calls for developing the most efficient plan for
gathering the needed information. The choice of research plan depends on the
depth and extent of data required, the costs and benefits of the research, the
urgency of the work and the time available for completing it. This research plan
involves decisions on the data sources, research approach, research
instruments, sampling plan and contact methods.
4) Collect information
Collecting information may prove expensive, time and effort consuming and
prone to errors whether these are to be collected through primary or secondary
sources.
5) Analyze the information

This step in the marketing research process is to extract findings from the
collected data. The researcher tabulates the data and develops frequency
distributions. The researcher will apply various advanced statistical
10. Briefly explain any five of the followings: (5×2=10)
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a) Marketing mix
b) Niche market
c) Pull and push strategies
d) B2B vs. B2C buying behavior
e) Service product
f) Relationship marketing
g) Advertising media
Answer
a) Marketing-mix:
Marketing mix is a combination of product, price, place and promotion which are
used to purchase the firms objectives in the target market. It consists of
everything the firm can do to influence the demand for its product. 4Ps constitute
the components of the marketing mix. Each component has its own mix such as
product-mix, price mix, place mix and promotion mix.
b) Niche market:
A niche market is a more narrowly defined group typically a small market whose
needs are not well served. Niche marketers clearly understand their customer’s
needs so well that the customers willingly pay a premium. The niche marketing
gains certain economies through specialization. The niche market has size, profit
and growth potential. The niche is not likely to attract other competitors.
c) Push & Pull strategy:
Pull strategy
Under pull strategy, promotion is directed at end users or ultimate consumers. The
main purpose of using this strategy is to motivate consumers for asking the
channel members for the product. This strategy largely depends upon
 mass communication
 the objective of pull buyers through channels by creating end-users
demand.
 Popular brand, extensive distribution.
Push strategy
Under push strategy, promotion is directed towards the middlemen. This strategy
can be successfully implemented in case
 the manufacturer has supplied higher quality products with unique selling
points(USP)
 the product are high priced
 adequate incentives to middlemen and salesmen are offered.
d) B2B vs B2C buying behavior
B2B buying behavior is the study of the decision making process by which formal
organizations establish the need for purchased products and services and identify,
evaluate and choose among alternative brands and suppliers. Whereas B2C
buying behavior is the study of all psychological, social and physical behavior of
all potential consumers as they become aware of, evaluate, purchase, consume
and tell others about products and services.
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e) Service product includes all: transportation, public utilities, insurance, legal, real-
estate, educational institutions, hospitals etc. It includes organizations that
produce and sell such diverse services as rental housing, recreation and
entertainment, repairs, health care, personal care and
business services etc.Today service product are highly demand and accompanying
with the terrible products are also to be considered
f) Relationship marketing is developing a mutually beneficial relationship with
selected customers. The seller attempts to develop a deeper, longer-lasting
relationship built on trust with key customers. Sellers have to show ability,
knowledge, honesty and behave in a reliable manner to show customer
orientation. Relation with existing customers rather finding new one.
g) Advertising is one of the most commonly used promotion tools by business
houses, non-government organization, service institutions, etc. It is a paid form of
non-personal presentation and promotion of goods\services, ideas by an identified
sponsor. It is done for mass communication to inform, persuade, remind,
reinforce and achieve organization goals. Ad media are the vehicles through
which message passed to scattered target market. Most used Ad media are:
• Print-Newspaper, Journal, Magazine, Book, directory, brochure, Mail, Internet, etc.
• Visual, Poster, display, exhibits, billboard, Sky writing etc.
• Audio-Radio- Audiotape, telephone, etc.
• Audiovisual-Tv, Film, Videotapes, etc
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Marks
SECTION 'A'
Question No. 1
You recently complained to your boss that you were unhappy with a piece of equipment
that you use (printer, computer, copier, fax, or the like). After some thought; the boss
decided you were right and told you to go shopping. Compare at least three different
manufacturers‘ models and recommend one. Since the company will be purchasing ten or
more units and since several managers must approve the purchase, write a careful report
documenting your findings. Establish at least five criteria for comparing the models.
Submit a memo report to your boss. (5+5=10)
Answer ………… 2009
To, …………………
Subject: Quality Survey of Office Computing Equipment
Dear Sir/ Madam
I take pleasure in submitting the report on 'Quality Survey of Office Computing'

Equipment as per your advice dated ………..2009.
I have studied the poor performance quality and tangible drawbacks of some of the
existing computing equipments of our office - computer sets, copiers, printers, fax
machine, etc. and studied the comparative advantages, qualities and benefits of each
with the new equipments readily available in the market.
The various brands available in the market that matches our desired technical
specifications are:
1. Cannon
2. Hewlett Packard
3. Mita
4. Lenovo
Though all the brands are more or less equally good and worth buying I, on the basis of
my observation and personal experiences, and also on the basis of the taste of our
managers of various departments, would like to recommend Canon over all other brands.
I have focused on the following five reasons for the justification of my choice.
1. Lower acquisition cost;
2. Minimum operating cost;
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3. User friendly;
4. Easy repair and maintenance; and
5. Extended warranty and after sales service.
I believe my report will facilitate the management in acquiring the best equipment
available in the market.
I am available for further clarification if required.
Sincerely,
………………………
(Manager)
Draft notes on the survey report

1. Reviewed the status of office computing equipments - printer, computer, copier, fax
etc.
2. Noted down deficiency, drawbacks of the available equipments- in terms of printing
quality, speed, paper support and delivery systems, their look and convenience for
use.
3. Established the need for new system requirements for office effectiveness.
4. Surveyed the different models and brands available in the market that matches the
specifications.
5. Formed a clear comparative view of different brands.
Recommendations:
1. Replace the existing equipments with the new ones to enhance the operating
efficiency and effectiveness of each department.
2. Use the existing equipment in the training section for secondary use.
3. Accommodate new equipments.
4. Timely servicing and maintenance of the all the equipments.
Question No. 2
Define a proposal. In the light of the fact that a sound proposal largely depends on the
effective presentation of the content, pinpoint the major tenets that help you better
organize the content in the proposal along with a brief explanation for each point. (2+8=10)
Answer
A proposal is a persuasive presentation for consideration of something demanded or
offered. Very much like a sales message, it is also a selling document of a job to be done
at the satisfaction of an individual or work organization. It is, in order words, a bid in
writing, for sale of products or acceptance of services appealing for grants and donations
to do this.
A proposal being a selling document depends upon the quality of persuasiveness which
relies on the quality of presentation. A good proposal is written on AIDA (Attention,
Interest, Desire and Action) formula. Except in the case of a proposal seeking someone‘s
or some work organization‘s .voluntary support or cooperation, e.g. a student seeking

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support and financial assistance for carrying out his research work, the writer should be
fully familiar with the recipient‘s problems and service requirements. To this end, the
proposal writer should be able to convince the receiver that the former is able to
cooperate with him and solve his problems.
Proposals are of mainly two types – a. invited and b. uninvited. The same is also
categorized as a. research proposal and b. business proposal. A business proposal has
necessarily to be an invited proposal which needs to review what the proposal requires.
Some written invitations also give a suggested plan for the proposal writing. It is called
TOR (terms of reference).
.
a. The writer‘s purpose and the reader‘s need.
A well-begun proposal begins with a statement that states the writer‘s purpose and the
reader‘s requirements. In case of an invited proposal, the statement should also link up
with what has been said in the invitation. But in the case of an uninvited proposal, its
beginning has to have an additional part that must gain the reader‘s attention. An invited
proposal is very much like sales messages. Its intended readers are not likely to read
them. Therefore, the beginning must address the reader‘s reluctance to read. One
effective way is to summarize the major points of the proposals with an emphasis on the
benefits. Then our clear statement of the purpose and problems may be the most
important strength of the proposal.
b. A review background of information of the proposal also promotes an understanding of
the problem. It will enable the reader to get to know the past records and history of the
problem trying to establish your point that you have been working in the same line. At
the same time, the writer will have to point out the benefits. It will, in turn, help the
readers to have a better perspective of the proposal
© A detailed picture of work procedure: As a selling document, a business proposal gives
a complete picture of the work procedures followed during the project work. It includes
answers to Wh- questions – what? why? where? when? how?, etc. It contains the
following:
i. Background Information. No proposal begins the work procedure without giving

glimpse of the background information, which will help readers understand much about
what the project is about and about the need to initiate the project the project. Example
for this: Concern Nepal- a child exploitation-related non-governmental organization
invites proposals from interested and qualified management consultants/ researchers to
study the situation of rag-picking children in the Metropolitan City of Kathmandu.
The background information of the proposal will be thus:
Background: The increasing population of the abandoned and homeless street children
poses a serious problem of children at risk. With the exception of those who resort to
begging, many of them are seen struggling hard for survival. The historical background
will reflect on the need for undertaking a project on the proposed subject.
Description of the Plan: The heart of the proposal is the description of what the writer
wants to do. This should include the list of things and the manpower requirements
presented in a serial order what the contents include depends upon the type of project.

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Particulars: This refers to the particular details such as the work schedules to be done in
different phases, work schedules, time allocation for each phase of work, cost,
equipments and supplies needed.
Evidence of ability to deliver: The proposal writer should convince that the proposal is
able to undertake and complete the assigned task with the time stipulated within the
project period. To this end, it should also refer to its professional expertise and skills.
Benefits of the proposal: The proposal should articulate the benefits of the project- not
only for the proposal seeking organization, but also for the public at large. For example, a
proposal presented by a reputed management consulting firm to Plan International –
Nepal to conduct an investigation study on the birth registration situation in Far Western
Nepal will benefit not only the proposal seeking organization but also residents of the
backward rural communities.
Concluding remarks: The proposal should end with the concluding remarks. One way is
to present a summary review of the highlights. Another way is to offer additional
information that might be needed. Yet, another way would be to urge action on the
proposal.
Question No. 3
Describe briefly what employers look for during an employment interview. Explain the
three stages of a successful employment interview. (5+5=10)
Answer
An interview is a planned interaction between two or more people under a given situation
created for selecting the most capable and competent candidate for a job. An interview is
one of the most formal channels of communication which idealizes the interpersonal
relationship through the active interaction between the interviewer and the interviewee.
An employment interview is a crucial stage for an employer because he has to select the
most appropriate candidate out of a number of candidates to achieve his organizational
goal. Usually, the employer looks for two things during an employment interview. First,
the interviewers will try to know if the applicant is well-qualified for the position even
though they have already reviewed the applicant‘s resume while short-listing the job
applications. They want to see how well his skills match their organizational
requirements. To this end, some interviewers use pre-employment tests to help them
make a decision about the quality of the interviewee.
Second, the interviewers will try to know whether or not the selected applicant will be
compatible with the other people in the organization.
Stages of interviews: Most interviews have three stages: a. the warm-up stage b. the
question-answer stage and c. the concluding stage. The first is the most important stage
because the impression left by the interviewee in the mind of the interviewer determines
the lot of the interviewee.
Apart from this, the first stage involves some important considerations for the
interviewee. They include:

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a. Dress-up impression. This does not mean wearing highly fashionable and costly
clothes. The interviewing board expects to see the interviewee in simple but neat and
clean dresses.
b. Punctuality. An interviewee is advised to reach the office some 15-20 minutes before
the appointed time.
c. Avoiding chewing gum or paan (beetle leaf), smoking, taking coffee, etc. because this
seem unruly and uncultured.
d. Being mindful of the body language. The interviewee should be smart enough to
understand the non-verbal cues provided by the interviewer. They tell a lot about the
interviewer‘s expectations.
e. Moving with self-confidence. Every interviewee should think he can perform better in
the interview
g. Coming well-prepared with necessary documents. All the papers which could be
possibly asked for in the interview should be taken.
h. Controlling speaking. Should not speak more than what is expected and
i. Overcoming fears. Job interviews, in most case, are frightening and challenging.
Interviewees do not like to be judged, sometimes humiliated by odd questions posed by
the interviewers. But the fear can be overcome by knowing how it (the interview) works.
and how it should be dealt with.
The second stage, the most important and time-consuming, is the stage of activities for
both the interviewers and interviewee. Also recognized as the stage of discussion., it
occupies nearly 85 percent of the interview weight age Of the many things to be taken
into consideration, listening carefully for the interviewee and watching the interviewee‘s
non-verbal which helps the interviewer achieve his/her goals are crucial.
The third is the stage of performance evaluation. It is in this stage that the interviewer
would have assessed the worth of the candidate.
The last stage is the stage of complimentary close, in which the interviewer, consciously
or unconsciously leaves some clues about the satisfaction or dissatisfaction about the
interview. A very cautions and careful interviewee may discover it. The interview closes
with departure formalities, such as ‗Wish you had a successful interview! See you again!
Wish you a successful life!
Question No. 4
Define non-verbal communication. Discuss the ways to improve non-verbal and oral
communication in multicultural environments. (3+7=10)
Answer
Communication takes place in various ways for a variety of purposes. Usually,
communication takes verbally- orally and in writing. But this is not an end in itself,
because in certain circumstances, communication without the use of words and scripts
plays a paramount role and does what verbal communication cannot. Non-verbal
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intentionally and unintentionally, without using written or spoken language. The non-
verbal signals include facial expression, gesture and posture. Here, communication takes
place through use of body language, i.e. gestures, signs, symbols. This process of
communication is called non-verbal communication, because it does not use verbs of
action.
Reliability of non-verbal communication: Non-verbal communication is more reliable
than verbal communication. In simple words, vocal commitments, may tell a lie. Fake
words and sheer lies used by those involved in cheating, deceitful, fraudulent business
and criminal activities, do not at all correspond with their facial expressions and bodily
postures. Those who fail to understand the meaning of a deceitful smile are easily
exploited by the former.
Differences between Verbal and Non-Verbal Communication
To speak of some of the differences, words of verbal communication are cerebral (brainy)
Non-verbal communication are visceral (physical), i.e. we feel, but do not think about
what something means. Second, words are specific and self-edited. Contrarily, body
language is not edited, because posture, gestures and movements are unconscious.
Body language. Body language which constitutes the first content of non-verbal
communication deals with bodily parts and the roles they play in the process of
communication. Roles played by the movement of head, face, eyes, limb discussed in
body language. The meanings conveyed by them also culture dependent. Meanings
conveyed by gesture language are subject to territorial distances. As such, we have native
as well as foreign gestures. Lots of unhappy and tragic incidents occur because of the
differences in the meaning of gestures of two localities or two different countries.
Role of signs and symbols. Signs and symbols and signals also play a significant role in
non-verbal communications. Most people are familiar with the ―No: Smoking‖ ―Stop‖,
and ―Wait‖ ―Go‖ signals. Handicapped people and the dumb and deaf people can benefit
much from non-verbal cues.
Kinesics (body language), Pronemics, Haptics (touch) language, Paralanguage (vocal
characteristics), Pitch variations, , Change in the voice for effect, Speaking speed,
Silence, Pause, etc. are well-elaborated in the process of understanding Non-verbal
Communication.
In view of the fact that non-verbal communication is more reliable than verbal
communication, it is indispensable for an effective manager to understand non-verbal
communication. A manager, however qualified and competent, may be deceived by less
qualified and less competent staff, if he/or she is unfamiliar with the non-verbal
communication.
Question No. 5
Write short notes on ANY TWO (2×5=10)
a) Use of you-viewpoint language in business
Answer
In writing business message, the you-viewpoint language helps in the motion o
goodwill of the organization among its clients and customers. As the "you-viewpoint"

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language emphasizes the reader‘s interest and concerns rather than the writer‘s. This
technique is very effective to do motivate, influence and win favor of the people. I t
emphasizes you, your and yours and de-emphasizes we, our, and ours. The you-
viewpoint language is an attitude that places the reader in the center of things. It
involves being friendly and treating people the way they like to be treated. For
instance, the statement. "I am happy to report….‖ Place the writer at the center, were
―you will be happy to know…‖ places the reader at the center. The You-viewpoint
language, therefore, provides the reader a kind of psychological boost and confidence.
Apart from the above, we viewpoint different from you viewpoint. Sources self-
centered and speaker-focused. Writing in you viewpoint language is custom- focused.
b) Elements of good talking

Answer
Talking is an oral expression of knowledge, viewpoints, and emotions through
words. In other words, talking is an oral presentation of facts, ideas and knowledge.
Due to the lack of effective presentation, even a well-prepared report or paper will
fail to achieve its goals lags much behind the effectiveness of a good talk.
Furthermore, in the modern competitive business world, the one who can better sell
his/her words is the one who succeeds.
Business organizations also look for those employees who posses dynamism and
have good talking skills. The elements of tood talking are as follows:
i) Voice Quality. Voice quality refers to the vocal sounds one hears when another
speaks. It also includes the speed and volume of sound. Voice should be
pleasing and melodious, not harsh and high-pitched
ii) Style: Style refers to the parts of voice quality (pitch, speed and volume). That
is to say, style refers to a set of voice behaviors that give uniqueness to a
person‘s personality.
iii) Word choice: refers to the choice of appropriate words for language
effectiveness.
c) Pros and cons of emails
Answer
Email is one of the fastest means of communication today. The rapid growth of email has
been the most exciting business communication development in years. Email has
emerged as a mainstream form of communication in a short period of time. It has become
widely used in both small and large organizations. The advantages that email has over
other forms of communication are as follows:
 Email eliminates the problem of trying to conduct busy people who are not
always available for telephone calls.
 Email is timesaving as well as economical.
 Email can speed up the process of making business decisions, because it
permits rapid exchanges from all involved in the decisions.
 Email is cheap.

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 It provides a written record.

The disadvantages of emails are as follows:
 Email is not confidential. Email messages have to go through intermediate
computers before reaching their destination and it meansthat it is relatively
easy for others to intercept and read messages.
 Email doesn't communicate the sender's emotions well. Voice, intonations,
facial expressions, and body movements are not a part of email. Due to the
lack of such opportunities, communication through emails may not be as
much effective as the face to face communication.
 Email may be ignored or delayed.
SECTION 'B'
Question No. 6
Tap water is Coca-Cola‘s biggest competitor. Pepsi Co. and Coke have recognized
bottled water as a threat to their growth in the beverage industry. As consumers have
become more health conscious, the soft drink industry has lost ground to bottled water.
The rising standard of living worldwide allows ―people to pay a premium for processed
tap water‖.
In 1999, the sale of bottled water in the U.S. was up 35% vs. 0.5% for soft drinks. Pepsi
Co‘s Aquafina bottled water is ranked as the fifth largest U.S. bottled water brand.
Coke‘s Dasani bottled water is the eighth U.S. bottled water brand.
Thus far, bottled water is a small part of Pepsi Co. or Cokes‘ revenues. Pepsi Co
differentiates Aquafina as purified water essential to the body. Coke differentiates Dasani
by adding minerals. For both companies their bottled water products are key elements in
their product offering.
Unlike the soft drink market where the two companies dominate the industry, the bottled
water market has well established market leaders with global recognition. ―Danone,
which owns Evian, and Nestle, which sells Perrier‖ are global giants and Poland Springs
is the U.S. bottled water leader. The advantage that Pepsi Co. and Coke have is ―their
extensive distribution network‖. This allows them to place their product.
Questions: (2×5=10)
a) Given the worldwide recognition of Coke and Pepsi, why do you believe these
companies did not apply these brand names to their bottled waters?
b) Why would companies like Coke and Pepsi Co. add a product line that potentially
reduces sales of their existing product lines?
Answer
a)
Customer
While developing bottled water, Coke and PepsiCo might have directly interacted with
their customers to know about the features that they would prefer in order to fulfill their

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needs. It might have been due to the fact that majority of the customers suggested them to
do what they ultimately did.
Image
If the new product-with the borrowed brand name-doesn't resonate in the marketplace,
the core or parent brand could be irreparably damaged.
Market Trends
PepsiCo and Coke enhance carbonated drinks in the mind of the people. As consumers
have become more health conscious, the soft drinks companies have lost ground to
bottled water. If PepsiCo and Coke apply these brand names to their bottled waters,
consumers might have the same impact of Coke. In order to differentiate water from
carbonated drinks, the companies might have used the brands "Aquafina" and "Dasani".
b) Customer preferences and environmental forces necessitate new product

development. Customers' preferences for soft drinks have changed. As carbonated drinks
loose their fizz, bottled water sales have flown due to the rising standard of living of the
people. In 1999. the sale of the bottled water in U.S was up 35% versus 0.5% for soft
drinks. Competitors like Poland Springs, Danone and Nestle are snatching the
opportunities. In order to counter these challenges, PepsiCo and Coke have followed
product line strategies by adding bottled water in their product lie with new brand names.
The advantage of Coke and PepsiCo have is their extensive distribution network. This
allows them to place their products easily. Now the result is booming. Although bottled
water is only a small part of PepsiCo or Coke revenues, PepsiCo's Aquafina is ranked as
the 5th largest bottled water brand. Coke Dasani bottled water is the 8th largest bottled
water brand. This, Coke's and PepsiCo's added product line would not potentially
cannibalize their existing product lines. They are a part of their companies' product lines
strategies only.
Question No. 7 'a'

Point out the macro (external) environment of marketing. 5
Answer
Forces in the external environment are non-controllable by management and marketing.
However, they can influence them and be influenced by them. Macro environment is
located outside the organization. It consists of political-legal, economic, socio-cultural
and technological (PEST) forces
i. Political and legal forces:
At now, Nepalese market is highly affected by political and legal forces. They strongly
affect marketing decisions. Government policies, government agencies and laws are the
political and legal forces affecting marketing environment.
ii. Economic forces

Economic environment plays a significant role in their marketing system. High economic
growth assures higher level of employment and income. High purchasing power and
willingness to spend lead to marketing boom. Natural resources, income distribution,

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economic health, inflation, fiscal policies, competition, regional economic groups are the
economic forces of marketing environment.
iii. Socio-cultural forces

The socio-cultural environment is made up of institutions and other forces that affect a
society‘s basic values, perceptions, preferences and behaviors. Demography, life style,
social forces, cultural forces the marketing environment.
iv. Technological forces:

Modern marketing has been shaped by technology. No technologies offer a main source
of economic growth. Level of technology, pace of technological change, research and
development budget are the technological forces of macro environment.
Question No. 7 'b'

Explain the requirements for effective market segmentation. 5
Answer
Market segmentation is a philosophy of directing products and services at specific target
group. Segmentation or subdivision of the market is based upon the modern marketing
concept. Obviously, it is a customer oriented philosophy. The requirements of effective
market segmentation are measurable, divisible, accessible, sustained and actionable.
i. Measurable
Customer size, customer needs, customer purchasing power and their characteristic
should be measurable for effective market segmentation, otherwise segmentation is
impossible.
ii. Divisible
The segments are conceptually distinguishable and respond differently to different
marketing mix and programs. In other words there must be same basis for dividing
homogeneous group.
iii. Substantial
Segment should be large and profitable enough to source. Segmentation should contribute
to objective achievement of organization.
iv. Accessible
Segmentation has no value if firm cannot find middleman to distribute the product and
services in target market or particular segment.
v. Actionable
The firm should be able to formulate and implement marketing program to serve the
segment.

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Question No. 8 'a'

What are the components of marketing information system? 5
Answer
a) Marketing information system is a continuous process that provides a constant flow
of information about such things as prices, advertising, expenditures, sales and
distribution expenses. It provides framework and distribution expenses. It provides
framework for the day to day managing and structuring of information regularly
gathered from sources both inside and outside the firm.
The components of market information system are:
i) Internal reports
Internal report system is a sub system of marketing information system. It is also
called Internal accounting system. It is also called Internal accounting system.
Internal marketing information is secured through accounting system. Data on sales,
inventories, costs, cash folds, account receivables and account payables etc are
generated within the firm.
ii) Marketing Intelligence system

Marketing intelligence system is an organized procedure to collect regularly from
diverse source of the information of potential usefulness for the making of marketing
decisions.
iii) Decisions support system

Decision support system (DSS)is that by means of which marketing data and
marketing issues can be analyzed by logical and questionnaire techniques.
iv) Marketing Research

Marketing research is the objective and systematic collection, recording analyses,
interpretation and reporting of information about existing or potential markets,
marketing strategies and tactics which enables management to assist decision making.
Question No. 8 'a'

Describe the stages of consumer buying process. 5
Answer
Consumer behavior is the process where by individual decide what, when , where, how
and from who to purchase goods and services. Consumer buying process is the process of
decision making to purchase function. It is composed of number of stages:
i) Need recognition:
The first stage of the buying process in which a consumer recognize the need.. A need
can be activated through internal and external stimuli.
Information search:
After need recognition, the consumer tries to solve it and gathers the sources and
information about the products. The consumer can obtain information from any several
sources. These include internal sources and external sources.

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ii) Evaluation of alternatives:

After searching the information consumer identifies the different alternative and
evaluates them. The evaluation stage represents the stage of mental trial of the product.
iii) Purchase decision

Purchase is a consumer commitment for a product. It is the terminal stage in the buying
decision that completes a transition. A consumer makes the purchase decision after
evaluating different alternatives.
iv) Post purchase behavior:

Post purchase behavior is the stage of the buyer decision process in which consumers
take further action of purchase based on the satisfaction or dissatisfaction.
Question No. 9 'a'

What is packaging? Explain its objectives. (2+3=5)
Answer:
a) Packaging
Packaging means the subdivision of packing function. Packing means wrapping of gods
or products before they are stored or transported or delivered to a consumer. Packaging
involves ass the activities of designing and producing a container or a wrapper of the
product. Their wrapper or container is called a package packaging provides information
about the quality of the product and methods to use to the buyers. Packaging establishes
public image for the branded products and helps in distinguishing the products of a
manufacture from that of another manufacturer. The utility of packaging is protection,
identification and convenience of selling.
According to Philip Kotler, "Packaging includes all activities of designing and producing
the container or wrapper for a product."
Objectives of Packaging:
Packaging has the following objectives:
i) Protection-
It aims to protect the product from damage. It preserves the quality of the product.
Damages to the product can occur from climatic conditions, mishandling, spilling and
evaporation. Perishable products need sound packaging to prolong their lives.
ii) Storage
Packaging facilitatesd provide storage of products till they are used. It fulfills the storage
needs of the customers as well as middlemen's.
iii) Information
Packaging provides avariety of information about the product. It identifies the product
and its manufacturers. It informs about product ingredients, directions for use, price,
quality, date of manufacturer and expiry and safety precautions for use.

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iv) Positioning
Packaging is used for positioning of products. Differentiated packaged facilitate product
differentiation. Consumers perceive product differences based on packaging.
v) Promotion
The package can act as a colorful salesman or effective advertisement at the point of sales
which make the buyer impulsive to buy the product. This facilitates self service
marketing.
Question No. 9 'b'

What is relationship marketing? How can relationship be retained with the customers?
Explain. (2+3=5)
Answer
Relationship marketing is building long term mutually satisfying relations with customers
in order to earn and retain their long term loyalty. The customer is regarded as partner in
creating value. All steps to know customers and to deliver high customer value and
satisfaction are taken.
According to Philip Kotler, "Relationship Marketing is the process of creating,
maintaining and enhancing strong value-laden relationship with high customers
andstakeholders." In other word, it is a long term partnership between marketer and
customer. It aims at customers retentions.
A marketer can retain the relationship with customer in the following ways:
i) Quality Assurance:
Marketers should promise and deliver high quality products at fair prices to customers.
Quality consistence and conformance standards should be ensured.
ii) Economic Benefits:

Strong economic ties are built with customers like:
1) Frequency Marketing Program
Key customers who buy frequently are given attractive discounts and rewards.
2) Club Membership Programs
Club membership is given to customers. Attractive discounts and other benefits are
given.
iii) Social Benefits:

1) Organizing customer get-togethers to meet and enjoy each other.
2) Individualizing and personalizing customer relationship. This provides social
recognition to the customer.
iv) Technical Benefits:

Organizations develop technical ties with their key customers. This help the marketers to
better manage their marketing efforts through:
1) Electronic Data Interchange.
2) Supplying Computer linkages to customer including software programs.

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Question No. 10
Briefly explain ANY FIVE of the following:
(5×2=10)
a) Industrial and Consumer market
Answer
Industrial market is the reasons for buying products are business use, resell or to make
other products. They consist of industries, business, resellers etc.
Consumer market is the reasons for buying products are own personal or household use.
They consist of ultimate customers.
b) Advertising
Answer
Advertising as a means of mass communication has mass selling possible. It is the best
known mass communication channel. Marketers and services throughout the country and
or in other nations are fully aware of necessity and importance of advertising promotes
the sale of goods, services, images and ideas through information and persuasion.
c) Retailer
Answer
Retailers operate on a small scale and in the local markets, selling directly to the
consumers a wide, variety of goods to satisfy numerous and changing wants of
consumers.
d) E-commerce
Answer
Traditional multinationals will in time be killed by e-commerce in this hi-tech. The e-
commerce delivery of goods, of services, of repairs , spare parts and maintenance, will
require a different mindset, a different top management and, in the end , different
definition of performance is measured will change. E-commerce is the way of doing
business through the help of computer network.
e) Pricing Policies
Answer
Pricing policies guide marketing decisions. They can be:
1. Single price policy consisting of a list price.
2. Flexible price policy consisting of price discrimination, discount, allowances.
3. Geographic price policy consisting of free on board, zone, base point, uniform
delivery prices.
4. Product mix policy based on product line, features, bundling, ancillary product.
f) Three level channel structure for consumer goods

Answer
Three levels of channel structure for consume goods consists of:
Producer—Sole Agent—Wholesaler—Retailer—Consumer
It is the longest channel and is costly. Global companies use this channel.

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Suggested Answers December 2022 Examination (CAP II - Group II)

Paper 6: Business Communication and Marketing

3. Answer the following questions briefly. (5×2=10)

• Self-monitoring and collaborating activities;

managers, sales force, middlemen, commercial detectives, marketing information section

Harry is a 27-year-old who is a foodservice manager at a casual dining restaurant. Harry is

a. What are the communication challenges and barriers Harry faces?

a) Communication challenges abound at any workplace. Harry has some common

i) Language barriers: Several potential solutions might be addressed here

c) Standard Operating Procedures (SOPs) serve as the written documentation of best

i) New Employee Orientation SOP: Due to time constraints of “busy days”

Tips for communicating with diverse audiences on the job.

One should understand the value of differences. Diversity makes an organization

One should make fewer assumptions. We should be careful of seemingly insignificant,

3. Answer the following questions briefly. (5+5=10)

One should be responsive and helpful. If we are in a support role, we should be

We should take messages carefully. Few things are as frustrating as receiving a

Languages: English, Nepali, Hindi, Maithili and Newari

Date of issue: Dec 2, 2021

4. Write short notes on: (4×2.5=10)

a) Zoom presentations allow presenters to communicate their ideas in a more

ABC Pvt. Ltd.

8. Write short notes on: (5×2=10)

All questions are compulsory.

January 20, 2021

3. Answer the following questions briefly. (5+5=10)

4. Write short notes on: (4×2.5=10)

c) Technical and financial proposals

All questions are compulsory.

a. They are eco-friendly

4. Write short notes on: (5×2=10)

All questions are compulsory.

(b) The objectives of the research report:

July 23, 2020

Mr Phul Prashad Bantawa

4. Write short notes on: (4×2.5=10 marks)

All questions are compulsory.

Paper 6: Business Communication and Marketing

© The Institute of Chartered Accountants of Nepal 38

becomes important to discuss how the nondiscriminatory and non-abusive language

© The Institute of Chartered Accountants of Nepal 39

© The Institute of Chartered Accountants of Nepal 40

• Have a positive attitude. Use positive body language; speak energetically.

© The Institute of Chartered Accountants of Nepal 41

to express themselves clearly; errors in judgment; and overlooking pertinent and

© The Institute of Chartered Accountants of Nepal 43

3. The economic environment of Nepal is another element contributing to marketing

© The Institute of Chartered Accountants of Nepal 44

© The Institute of Chartered Accountants of Nepal 45

© The Institute of Chartered Accountants of Nepal 46

market installations. Because installations require careful, detailed explanation,

8. Write short notes on: (5×2=10 marks)

© The Institute of Chartered Accountants of Nepal 47

© The Institute of Chartered Accountants of Nepal 2

2. What importance does ethical communication have in business? Discuss some

© The Institute of Chartered Accountants of Nepal 3

exaggerations, and deceptions constitute unethical communication. But conflicting

We look at diversity differentiating three dimensions of analysis: a symbolic, social,

© The Institute of Chartered Accountants of Nepal 4

identifies separate dimensions of diversity in its discussions of workforce diversity,

Mr. John Gillbert

Jan. 24, 2019

Dear Mr. Gillbert,

I am very interested in working at XYZ Company and I believe my skills and