Marketing Management (MKTG 601)-
(PAPERSET I)
Mapped Subjects:
[Max Marks: 70]
Note: Attempt Questions from all sections as directed.
Section A - Attempt any Two questions out of Four. Each question carries 7.50 marks. [15
Marks]
Question No: 1
What constitutes a business environment for an organization? Describe the types of business
environment.
ANSWER
Business Environment for an Organization:
1. Internal Environment:
Company culture and values.
Organizational structure.
Resources and capabilities.
Management style and leadership.
2. External Environment:
Economic Environment:
Market conditions.
Economic policies.
Inflation rates.
Technological Environment:
Advancements in technology.
Innovation and research.
Automation trends.
Political and Legal Environment:
Government regulations.
Legal frameworks.
Political stability.
Social and Cultural Environment:
Demographics.
Social trends.
Cultural factors.
Competitive Environment:
Industry competition.
Market share.
Competitive strategies.
Natural Environment:
Environmental regulations.
Sustainability efforts.
Impact on operations.
3. Types of Business Environment:
Stable Environment:
Predictable conditions.
Low uncertainty.
Limited external changes.
Dynamic Environment:
Rapid changes.
High uncertainty.
Continuous adaptation required.
Internal Environment:
Factors within the organization's control.
Culture, structure, and resources.
External Environment:
Factors outside the organization's control.
Economic, technological, political, social, and natural factors.
Understanding and adapting to these elements is crucial for strategic planning
and successful operation in the business environment.
Question No: 2
What is Product Life Cycle? Explain the various phases of Product Life Cycle.
Answer
Product Life Cycle (PLC):
1. Introduction Phase:
Launch of the product.
Limited sales and awareness.
High marketing expenses.
Potential for losses.
2. Growth Phase:
Rapid sales increase.
Growing market acceptance.
Competitors enter the market.
Profits start to accrue.
3. Maturity Phase:
Sales peak and stabilize.
Market saturation.
Intense competition.
Marketing focus on differentiation.
4. Decline Phase:
Sales decline due to market saturation or new technologies.
Profitability decreases.
Strategic decisions: revitalize, harvest, or discontinue.
Strategies at Each Phase:
Introduction:
Build awareness.
Heavy marketing investment.
Limited product versions.
Growth:
Expand market share.
Product improvement.
Pricing adjustments.
Increased production efficiency.
Maturity:
Differentiate the product.
Cost-cutting measures.
Market diversification.
Focus on customer loyalty.
Decline:
Evaluate exit strategies.
Minimize costs.
Consider product innovation or diversification.
Understanding and effectively managing the product life cycle is crucial for
sustained success and strategic decision-making in the market.
Question No: 3
What is consumer behavior in Marketing? Explain the factors influencing consumer behavior.
Answer:-
Consumer behavior in marketing refers to the study of individuals, groups, or organizations and
the processes they use to select, secure, use, and dispose of products, services, experiences, or
ideas to satisfy their needs and wants. Understanding consumer behavior is crucial for marketers
as it helps them tailor their strategies to better meet the needs and preferences of their target
audience. Several factors influence consumer behavior, and here are some key points to
consider:
1. Cultural Factors:
Culture: Shared values, beliefs, customs, and behaviors passed down through
generations.
Subculture: Smaller groups within a culture with distinct values or behaviors.
Social class: A person's position in society based on factors like income,
education, and occupation.
2. Social Factors:
Reference groups: Groups that influence an individual's attitudes and behavior.
Family: Roles and influence of family members in the decision-making process.
Social roles and status: How individuals define their roles and status in society.
3. Personal Factors:
Age and life-cycle stage: Different needs and preferences at various life stages.
Occupation: The type of work a person does may affect purchasing decisions.
Lifestyle: Activities, interests, and opinions shaping consumer choices.
4. Psychological Factors:
Motivation: The driving force behind individuals' actions and behaviors.
Perception: How individuals interpret information and make sense of the world.
Learning: Changes in behavior resulting from experiences and information.
5. Individual Differences:
Personality: Unique traits and characteristics influencing consumer choices.
Self-concept: How individuals perceive themselves and their roles.
6. Situational Factors:
Purchase situation: Urgency, importance, and context of the buying decision.
Social surroundings: The presence of others during the decision-making process.
7. Marketing Mix (4Ps):
Product: Features, design, quality, and branding influence consumer choices.
Price: The perceived value and affordability of a product or service.
Place: Accessibility and distribution channels impacting consumer convenience.
Promotion: Advertising, sales promotions, and other marketing communications.
8. Online and Digital Influence:
The impact of online reviews, social media, and digital advertising on consumer
decisions.
E-commerce trends and the ease of online transactions.
Understanding these factors helps marketers create targeted and effective marketing
strategies that resonate with their target audience, ultimately influencing consumer
behavior positively.
Question No: 4
Explain the concept of Channel dynamics. Explain briefly Vertical, horizontal and multi-channel
marketing systems.
Answer
Channel dynamics involve the interactions and changes within distribution
channels. Three key concepts are:
1. Vertical Marketing System (VMS): Channels collaborate under unified
leadership for efficiency, like a manufacturer, wholesaler, and retailer working
together.
2. Horizontal Marketing System: Entities at the same level cooperate, such as
competing retailers forming alliances for mutual benefits.
3. Multi-channel Marketing System: Multiple channels are used concurrently,
like selling through both physical stores and online platforms to reach diverse
customer segments.
Section B - Compulsory Questions. Each
question carries 7.50 marks. [15 Marks]
Paragraph No: 1
Marketing in Action: Harley-Davidson Strengthens its Rider Community Harley-Davidson is one of
America’s most unique and enduring brands. It also has one of the strongest enthusiast communities in
the world. Harley-Davidson has benefited from a strong brand community more than any other
company in the world. But the company didn’t know exactly how to extend and build that community,
or how to evaluate the impact of their efforts in that arena. Harley-Davidson wanted to continue to
serve and build its community in a thoughtful way that was based on a deep connection with people.
Harley conducted research to reinvent the company’s approach to brand engagement and craft a
strategy for extending and strengthening the Harley rider community. Harley tried to decode the
different types of communities that existed under the Harley umbrella, and then develop a metrics
system to gauge the health of those communities. In particular, the team hoped to come away with a
new strategy for brand community engagement. The team studied the dynamics of groups including the
Red Hat Society, Burning Man, Weight Watchers, Fantasy Football, and other community based brands
like Apple and Disney to discover the implicit rules that governed these communities. Harley uncovered
three forms of community engagement: Pools, Webs, and Hubs. This insight has helped Harley focus its
efforts around the community-building initiatives most likely to have the greatest positive impact. The
team then developed three strategic imperatives for using services to build community and a set of
design principles for implementing each imperative. Across numerous projects, Harley will expand its
connection with the communities that are the backbone of its business. (Source:
http://www.jumpassociates.com/harley-davidson-strengthens-its-ridercommunity.html)
Question No: 1
Explain the marketing research process used by an organization to
understand its customer base. What factors you consider that makes Harley-
Davidson an enviable brand in motorcycle industry?
ANSWER:-
Marketing Research Process at Harley-Davidson:
Harley-Davidson employed a comprehensive marketing research process to
understand its customer base:
1. Problem Definition:
Identified the need to extend and strengthen the rider community,
leading to a strategic shift in brand engagement.
2. Objective Formulation:
Aims included understanding community dynamics, evaluating impact,
and developing a new strategy for brand community engagement.
3. Research Design:
Conducted research to decode various community types, studying
dynamics and implicit rules of groups like the Red Hat Society and
others.
4. Data Collection:
Gathered extensive data to identify three forms of community
engagement: Pools, Webs, and Hubs, analyzing the dynamics of diverse
communities.
5. Data Analysis:
Analyzed insights to guide community-building initiatives, focusing
efforts on those likely to have the highest positive impact.
6. Strategic Planning:
Developed three strategic imperatives and design principles for using
services to build community, aligning strategies with research findings.
7. Implementation:
Embarked on numerous projects to expand connections with rider
communities, implementing strategies based on research insights.
8. Monitoring and Evaluation:
Established metrics to gauge community health and continually
monitored the impact of community-building initiatives, making
adjustments as needed.
Factors Making Harley-Davidson an Enviable Brand:
1. Brand Community:
Nurtured one of the strongest enthusiast communities globally,
fostering a deep connection with customers.
2. Heritage and Uniqueness:
Enduring legacy and unique identity contribute to its enviable position.
The iconic Harley-Davidson brand is deeply rooted in American culture.
3. Strategic Insights:
Uncovered three forms of community engagement (Pools, Webs, and
Hubs), enabling focused efforts on initiatives with the greatest positive
impact.
Question No: 2
Comment on the statement- “community building necessary for a brand to have positive
impacts”. Which factors are crucial to influence the buying behavior of customers?
Answer:-
Comment on Community Building: Community building is essential for a
brand to have positive impacts because:
1. Brand Loyalty:
Communities foster a sense of belonging, leading to increased brand
loyalty as customers identify with shared values and experiences.
2. Word-of-Mouth Influence:
Positive communities generate word-of-mouth marketing, as satisfied
customers become brand advocates, influencing others in their network.
3. Emotional Connection:
Building a community creates emotional connections between the brand
and customers, enhancing overall satisfaction and brand perception.
4. Feedback and Improvement:
Communities provide a platform for direct feedback, enabling brands to
understand customer needs, preferences, and areas for improvement.
5. Customer Engagement:
Active community participation keeps customers engaged, contributing
to a positive brand image and encouraging repeat business.
Crucial Factors Influencing Buying Behavior:
1. Cultural Factors:
Cultural values, beliefs, and norms shaping consumer preferences and
decision-making.
2. Social Factors:
Influence of reference groups, family, and social status on purchasing
choices.
3. Personal Factors:
Age, lifestyle, personality, and individual motivations impacting buying
behavior.
4. Psychological Factors:
Perception, attitudes, and learning affecting how consumers perceive
and respond to products.
5. Product and Brand Perception:
Quality, brand image, and perceived value influencing buying decisions.
6. Marketing Mix (4Ps):
Product features, pricing, place (distribution), and promotion influencing
consumer choices.
7. Online Presence and Reviews:
Digital factors like online reviews, social media, and e-commerce
experiences playing a significant role.
8. Personalized Experiences:
Brands offering personalized and unique experiences stand out and
influence consumer behavior positively.
Section C - Compulsory Questions. Each
question carries 2.00 marks. [40 Marks]
Question No: 1
Products include more than just tangible objects, such as cars, computers, or cell phones.
Broadly
defined, “products” also include _________________
Option: 1
Services
Option: 2
Ideas
Option: 3
Events
Option: 4
All of the above
Question No: 2
________ are industrial products that aid in the buyer's production or
operations, including
installations and accessory equipment.
Option: 1
Parts
Option: 2
Specialty items
Option: 3
Materials
Option: 4
Capital items
Question No: 3
A manufacturer with a product in the decline stage of the product life cycle
might decide to
________ if it has reason to hope that competitors will leave the industry.
Option: 1
delay planning
Option: 2
harvest the product
Option: 3
drop the product
Option: 4
maintain the product without change
Question No: 4
________ plays an important role in labelling as it gives information about the
brand. It can be
removable or non-removable.
Option: 1
Descriptive label
Option: 2
Brand label
Option: 3
Grade label
Option: 4
None of the above
Question No: 5
Maruti Suzuki had launched Alto in the year 2000 which was a product
between two other
models of Maruti- Maruti 800 and Maruti Zen. This is an example of ________
Option: 1
Line stretching
Option: 2
Line Filling
Option: 3
Brand extension
Option: 4
None of the above
Question No: 6
Mattel's Barbie is an example of an age-defying product. Barbie,
simultaneously timeless and
trendy, is in the ________ stage of the PLC.
Option: 1
Maturity
Option: 2
Introduction
Option: 3
Growth
Option: 4
Decline
Question No: 7
The ______________________ consists of the factors and forces outside marketing
that affect
marketing management’s ability to develop and maintain successful
relationships with its target
customers.
Option: 1
Marketing organization
Option: 2
Marketing system
Option: 3
Marketing network
Option: 4
Marketing environment
Question No: 8
________________ is an important link in the company’s overall “Value Delivery
System” since
they provide the resources needed by the company to produce its goods and
services.
Option: 1
Marketing intermediaries
Option: 2
Competitor networks
Option: 3
Suppliers
Option: 4
Service representatives
Question No: 9
Dividing the market on the basis of variables such as an occasion, benefits
sought the user status,
usage rate, loyalty status, buyer readiness stage and attitude is termed as —
Option: 1
Product Segmentation
Option: 2
Behavourial Segmentation
Option: 3
Marketing Segmentation
Option: 4
Geographic Segmentation
Question No: 10
The consumers born between the years 1977 and 1994 are known as –
Option: 1
Adolescents
Option: 2
Generation X
Option: 3
Generation Y
Option: 4
Potential consumers
Question No: 11
The systematic design, collection, analysis, and reporting of data relevant to a specific
marketing
situation facing an organization is called—
Option: 1
Internal company records.
Option: 2
Marketing research.
Option: 3
Marketing implementation.
Option: 4
Marketing intelligence
Question No: 12
There are ____ types of targeting
Option: 1
Option: 2
Option: 3
Option: 4
5
Question No: 13
Firm charges the same price to all customers who seek to purchase a good or
service under
similar conditions in
Option: 1
Variable Pricing
Option: 2
Flexible Pricing
Option: 3
One price pricing
Option: 4
Geographic Pricing
Question No: 14
The given formula Price = (Product cost)/ [(100 – Markup percent)/100] represents?
Option: 1
Markup pricing
Option: 2
Market pricing
Option: 3
Variable pricing
Option: 4
Going rate pricing
Question No: 15
Which channel has no intermediary level?
Option: 1
Indirect Marketing Channel
Option: 2
Direct Marketing Channel
Option: 3
Producer Marketing Channel
Option: 4
Retailer Marketing Channel
Question No: 16
How many types of horizontal systems are there?
Option: 1
Option: 2
Option: 3
Option: 4
Question No: 17
A _____ is a community of customers who are marked as likely buyers of a
product from a
business.
Option: 1
Target Segment
Option: 2
Target Market
Option: 3
Brand Channel
Option: 4
Target Channel
Question No: 18
The third stage in new product development is –
Option: 1
Screening
Option: 2
Business analysis
Option: 3
Test Marketing
Option: 4
Commercialization
Question No: 19
---- is a strategy which involves pricing the product of the business more
tactically then the
immediate competition
Option: 1
Cost based pricing
Option: 2
Premium pricing
Option: 3
Variable pricing
Option: 4
Skimming pricing
Question No: 20
A _____ consists of producers, wholesalers, and retailers acting as a unified
system
Option: 1
Vertical Marketing System
Option: 2
Horizontal Marketing System
Option: 3
Circular Marketing System
Option: 4
Formal Marketing System
ANSWER
1. Option: 4
All of the above (Services, Ideas, Events)
2. Option: 4
Capital items
3. Option: 2
Harvest the product
4. Option: 2
Brand label
5. Option: 1
Line stretching
6. Option: 1
Maturity
7. Option: 4
Marketing environment
8. Option: 3
Suppliers
9. Option: 2
Behavioral Segmentation
10. Option: 3
Generation Y
11. Option: 2
Marketing research
12. Option: 4
5
13. Option: 3
One price pricing
14. Option: 1
Markup pricing
15. Option: 2
Direct Marketing Channel
16. Option: 1
2
17. Option: 2
Target Market
18. Option: 3
Test Marketing
19. Option: 4
Skimming pricing
20. Option: 1
Vertical Marketing System
