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Question Paper

Marketing Management I (MB1C1): October 2008


Answer all 100 questions. Each question carries one mark. <Answer 1. A new edition of a marketing textbook has just released by S.Chand publishers. The Library Department > of the University of Mumbai has always liked the textbooks and authorizes the purchase of the new edition without even looking at other publishers. This is an example of a/an (a) (b) (c) (d) (e) Modified rebuy New task Straight rebuy Impulse purchase Purchase.

<Answer 2. Likerts summated rating scale which is a set of direct, close-ended questions on a continuous five point > scale can be used to study (a) (b) (c) (d) (e) Motivation of the customers Perception of the customers Belief of the customers Buying behavior of the customers Attitude of the customers.

<Answer 3. Financial measures are used to analyze the current situation of an organization and ratio analysis helps to > analyze the financial performance of a firm. Which of the following ratios are liquidity ratios? I. II. III. IV. V. (a) (b) (c) (d) (e) Average collection period. Long term capitalization. Quick Ratio. Return on equity. Dividend yield. Both (I) and (II) above Both (I) and (III) above Both (II) and (IV) above Both (II) and (V) above Both (III) and (V) above.

<Answer 4. The income left with an individual after purchasing the basic necessities like food and clothing is called > as (a) (b) (c) (d) (e) I. II. III. IV. (a) (b) (c) (d) (e) Disposable income Taxable income Accounting income Discretionary income Credit. <Answer > Manufacturers believed that the success of their business depended on outselling the competition. Companies realized the need for product promotion and distribution. Marketers focused their efforts only on selling their products to customers. Consumer orientation began placing the consumer at the beginning as well as the end of the business cycle. Only (I) above Only (IV) above Both (II) and (III) above (I), (II) and (III) above All (I), (II), (III) and (IV) above.

5. Which of the following statements is/are true regarding the sales era in the evolution of marketing?

6. Which of the following leads to an intense rivalry amongst firms in an industry? I. II. III. IV. (a) (b) (c) (d) (e) When a few firms enjoy a large market share. If a significant market share is enjoyed by a large number of small players. Lack of differentiation among the products of the players in the industry. When switching cost for customers is low. (I), (II) and (III) above (I), (II) and (IV) above (I), (III) and (IV) above (II), (III) and (IV) above All (I), (II), (III) and (IV) above.

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7. According to Patrick.M.Lencioni, when a company sets social and behavioral standards for its employees, values become (a) (b) (c) (d) (e) (a) (b) (c) (d) (e) (a) (b) (c) (d) (e) Core values Desired values Values by chance Approved values Benefit values.

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8. The three psychographic dimensions most commonly used in market segmentation are Personality, perception and learning Personality, perception and behavior Motives, attitudes and lifestyles Personality, motivation and lifestyles Values, occasions and lifestyles.

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9. The loyalty status of a customer who uses two or three brands is categorized as Soft-core loyals Split loyals Shifting loyals Stretchers Hard-core loyals.

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<Answer 10. The system that collects and processes information using computer software programs, advanced > statistics tools and other such techniques to obtain a scientific solution for marketing problems and also able to store and retrieve data is referred as (a) (b) (c) (d) (e) Marketing intelligence system Marketing decision support system Managerial decision process Ethical marketing research Marketing information system.

<Answer 11. Which of the following analysis determines the sales system using statistical tools by developing sets of > equations? (a) (b) (c) (d) (e) Econometric analysis Exponential smoothing Demand analysis Test marketing Sales quota.

<Answer 12. Target Stores, a US based discount chain stores had 1330 retail stores in 47 states of the United States. > Even though it only had one fifth of the sales and profits of Wal-Mart, it had a loyal customer base that was looking for trendy, yet, affordable range of merchandise. Target forged partnerships with designers to sell exclusive designer wear in their store. Which of the following is the best suitable reason for Target Store to opt for these partnerships? (a) (b) (c) (d) (e) In US, customers prefer designer wear It helps the firm to price its products lower than that of its competitors It earns more profit on designer wear To reinforce its image and provide quality products to its customers This would be an inexpensive way to attract new customers. 2

13. After considering all the options worth buying, Sandy has decided to go to @home furniture shop because of the discounts she will receive on buying the double cot bed. Which stage of the buying decision process is Sandy in? (a) (b) (c) (d) (e) Problem recognition Post purchase Information search Purchase Dissonance.

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14. Credit is obtained from financial institutions, banks, credit card providers and stores. Customers inclination to use credit depends on their I. II. III. IV. (a) (b) (c) (d) (e) Disposable income. Interest rate. Size of down payments. Monthly installments. (I), (II) and (III) above (I), (II) and (IV) above (I), (III) and (IV) above (II), (III) and (IV) above All (I), (II), (III) and (IV) above.

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<Answer 15. Bairaju Foundation started by Satyam Computer Services Limited is empowering youth and providing > free education and pure drinking water in villages. Which of the following marketing concepts does this reflect? (a) (b) (c) (d) (e) (a) (b) (c) (d) (e) Marketing concept Selling concept Societal marketing concept Production concept Product concept. <Answer > Expected products Branded products Generic products Augmented products Potential products.

16. Which of the following are unbranded, plainly packaged products and less expensive products?

<Answer 17. DJ & C, a ready made trouser and shirt manufacturer in India identified an opportunity to increase the > market share by launching its products in Pakistan and Srilanka. Which of the following strategies DJ & C will adopt to increase its market share? (a) (b) (c) (d) (e) Market penetration strategy Product development strategy Market development strategy Diversification strategy Market Integration strategy.

<Answer 18. Apna Bazar a super market chain in Delhi has a very good reputation in the city. They have a loyal > st nd customer base. During 1 , 2 and last weeks of every month the customer traffic in the store is very high and takes much time for the billing for each customer. So the customers are dissatisfied and complaining against the billing. Some times the printers are stuck. So the staff asked the management to replace the printers with Inkjet. Earlier they used to purchase printers from Logitech, which supplies dot matrix printers only. Which of the following would be most suitable buying decision for the management of Apna Bazar? (a) (b) (c) (d) (e) Resubmit an order to Logitech only on the same conditions as before Ask the Logitech technicians to repair and maintain printers regularly Buy Dot matrix printers from other company Buy Inkjet printers from other company Ask Logitech to produce Inkjet printers for them.

<Answer 19. Hyderabad House, a restaurant started in Hyderabad, Andhra Pradesh. It established by starting two > chain restaurants in Hyderabad. It increased its chain into 12 restaurants in Hyderabad by the end of 2007. When some of its competitors set to enter Hyderabad market it took many strategic steps like giving price discounts, Big meal offers and variety of food etc. In 2008 it planned to expand all over India, U.S and Arab countries. It formed strategic alliance with those restaurants that have presence in those areas. Which of the following best explains reason for Hyderabad House to form a strategic alliance? This would be an inexpensive way to enter into new markets As it cannot set up its own restaurants in all these countries The alliance partner would be well versed with the culture and have good knowledge about their market The alliance partner can take complete responsibility for success of Hyderabad House This would help Hyderabad House to prove its superiority over its competitors. <Answer 20. The target that has been assigned to a salesperson or other marketing entity for sales in a region and/or > the sales of a product range is called as (a) (b) (c) (d) (e) I. II. III. IV. (a) (b) (c) (d) (e) Sales forecast Territory sales forecast Allocation of sales effort Scheduling the salesperson Sales quota. <Answer > Raw materials are purchased on the basis of customer demand. It maintains minimum inventory of raw materials and finished goods. The firm forecasts its sales and develops its production schedule. The firm orders the goods according to its forecasts. Both (I) and (II) above Both (I) and (III) above Both (I) and (IV) above Both (II) and (III) above Both (II) and (IV) above. (a) (b) (c) (d) (e)

21. Which of the following statements are true regarding just in time process of organizational buying?

<Answer 22. Hero Honda created value in the form of better mileage and has been adapting to the latest technology as > well as the preferences of the customers. It initially introduced Hero Honda 100 CC, then the SS, Splendor, Passion, CBZ, Splendor Plus and Karizma. It is continuously innovating, making it very difficult for a competitor to beat it. Though TVS and other competitors entered into the market, they failed as compared to Hero Honda. Which of the following best describes success of Hero Honda? Hero Honda is technologically strong when compared to its competitors Hero Honda has innovated value and is successful in sustaining and communicating it over a period of time (c) Competitors failed in communicating their products (d) Hero Honda positioned itself as No. 1 bike of the country (e) Competitors failed in understanding customers needs. <Answer 23. Which of the following buying behavior is exhibited when a customer buys high involvement, expensive > and less frequently purchased products? (a) (b) (c) (d) (e) Routinized buying behavior Variety seeking behavior Extensive problem solving Post purchase dissonance Post purchase satisfaction. (a) (b)

<Answer 24. The government of India controls the money supply as the Gross National Product (GNP) drops > drastically. It is forecasting the period of (a) (b) (c) (d) (e) Recession Depression Recovery Growth Austerity.

<Answer 25. Which of the following concepts is based on the belief that implies, determining target customers needs > and delivering desired satisfaction more effectively and efficiently than competitors? (a) (b) (c) (d) (e) Marketing concept Selling concept Production concept Societal marketing concept Product concept.

<Answer 26. Hindustan Lever Limiteds (HLL) product lines include consumer goods, distributed by the same > channels of distribution and are produced in similar manufacturing facilities. This best illustrates HLLs product line (a) (b) (c) (d) (e) Width Depth Length Volume Consistency.

<Answer 27. Which of the following are runner-up companies that aggressively attack competitors to get more market > share? (a) (b) (c) (d) (e) Market leaders Market challengers Market followers Market nichers Market penetrators.

<Answer 28. In order to communicate and deliver the companys desired position to the consumer successfully, the > company I. II. III. IV. (a) (b) (c) (d) (e) Must emphasize advertising in support of its positioning strategy. Must focus its promotional efforts on personal selling. Must place its greatest efforts on producing the desired product efficiently. Must focus the entire marketing program in support of the chosen positioning strategy. Only (I) above Only (IV) above Both (I) and (II) above (I), (II) and (III) above All (I), (II), (III) and (IV) above. <Answer >

29. Which of the following are the strategies to be followed by the companies to succeed in Niche marketing? I. II. III. IV. (a) (b) (c) (d) (e) The company should not introduce products that compete with its own products in the market. It has to position their product in smaller markets. It has to focus on individual customer. It has to provide specialized product offering. (I), (II) and (III) above (I), (II) and (IV) above (I), (III) and (IV) above (II), (III) and (IV) above All (I), (II), (III) and (IV) above.

<Answer 30. Which of the following segmentation criteria focuses on customer capabilities as a factor for segmenting > organizational market? (a) (b) (c) (d) (e) Demographic Operating variables Purchasing Situational factors Personal characteristics of the purchasers.

<Answer 31. Which of the following information is obtained by scanning of information sources on a continuous basis > and includes information on industry, competitors, etc., obtained from newspaper articles, magazines, trade journals, government reports and annual reports? (a) (b) (c) (d) (e) Monitoring information Requested information Processing information Recurrent information Selective information.

<Answer 32. Ajay Mathur works in an organization, where purchases are accountable to the public. His purchasing > processes are influenced by various levels and are also extremely complex. In this regard, the market type in which Ajay Mathur works refer to (a) (b) (c) (d) (e) Reseller market Producer market Government market Supplier market Monopoly market.

<Answer 33. Which of the following is the reference group, that an individual does not hold any membership and tries > to resent values and beliefs of that group? (a) (b) (c) (d) (e) Membership reference group Aspirational reference group Disclaimant reference group Avoidance group Secondary reference group.

<Answer 34. Which of the following analysis provides marketers with an estimate of the extent of profits that each > product line brings to the company? (a) (b) (c) (d) (e) Marketing cost analysis Customer profitability analysis Financial situation analysis Contribution analysis Ratio analysis. <Answer >

35. Companies continually search for new customers in order to make profits and increase their sales volume. Which of the following is not helpful to the companies in generating a lead to attract new customers? (a) (b) (c) (d) (e) Developing advertisements Mailing to prospective customers Participating in trade shows and fairs Making personal phone call to customers Measuring the defection rate.

<Answer 36. Which of the following occurs when a company lengthens its product beyond its current range of > products offered to consumers? (a) (b) (c) (d) (e) (a) (b) (c) (d) (e) Line stretching Line filling Line pruning Line modernization Line proliferation. <Answer > Facilities Financial resources Brand image Marketing skills Culture.

37. Limitation of which of the following is not a source of weakness for a business?

<Answer 38. Consult-Me Consultants Inc., has been involved in several special meetings to discuss on issues such as > business mission, situation analysis, market and growth alternatives, and implementation approaches. Consult-Me is apparently engaged in (a) (b) (c) (d) (e) Value chain analysis Segmenting Strategic planning Business analysis Business process engineering.

<Answer 39. Although marketer needs to concentrate on a super segment, it is better to go one step at a time. > Competitors should not get a clear picture of the direction in which the organization is moving. Which of the following segmentation strategies best suits the above condition? (a) (b) (c) (d) (e) Segment interrelationships and super segments Ethical choice of market targets Full market coverage Selective specialization Segment by segment invasion plan.

<Answer 40. The risk taking and risk averting nature of a buyer influences in segmenting organizational market is an > example of (a) (b) (c) (d) (e) Personal characteristics Operating variables Purchasing approaches Situational factors Demographics.

<Answer 41. The competitors reaction patterns to a firms competitive strategies should be observed continuously, > because it is necessary to attack the competitors in their vulnerable areas. Normally, there are four types of competitors based on their reaction patterns. One of the competitors is Selective competitor. Which of the following statements is true regarding the Selective competitor? In this type of competitors reaction pattern, company may or may not respond to the strategies of his competitor (b) In this type of competitors reaction pattern, company strongly retaliates to the slightest move of his competitors (c) In this type of competitors reaction pattern, company reacts only to certain types of strategies, perhaps to added product features or line extensions (d) In this type of competitors reaction pattern, company reacts very slowly to the competition (e) In this type of competitors reaction pattern, company retrieve the product from the market incase of strong competition. <Answer 42. In which of the following functions of the marketing plan does the marketing manager analyze > opportunities available to the company in the market and threats to the company and also determines the issues related to strengths and weaknesses of the company? (a) (b) (c) (d) (e) Marketing analysis Action programs Marketing strategy Opportunity and Issue analysis Controlling. (a)

<Answer 43. In organizational market segmentation, which method considers the variables like industry, company > size and customer location? (a) (b) (c) (d) (e) Demographic segmentation Operating variables Purchasing approaches Situational factors Personal characteristics.

<Answer 44. Segmenting the market by the degree of likelihood of repurchasing a brand would be an example of > which type of behavioral segmentation? (a) (b) (c) (d) (e) Usage rate Loyalty status Benefits sought User status Occasion.

<Answer 45. Which of the following statements is false regarding collection of secondary research data for a research > need? (a) (b) (c) (d) (e) (a) (b) (c) (d) (e) It can be organized in-house or via a research agency It is collected after primary data It is collected quicker than primary data It is cheaper than primary data Its internal sources include the companys literature, annual reports, sales report, etc. <Answer > Environmental, organizational, psychological and social Environmental, psychological, social and technological Environmental, organizational, personal and social Technological, organizational, environmental and interpersonal Environmental, organizational, technological and social.

46. What are the four main categories of factors that influence organizational buying decisions?

<Answer 47. Mr. Rakeshs wife wants to present a bicycle to her son on his 7th birthday. So she informs the same > thing to Mr. Rakesh. He is also convinced to buy a bicycle for his son. He goes to a cycle shop and buys a BSA cycle for his son. In this example, What are the roles played by Mr.Rakesh? I. II. III. IV. (a) (b) (c) (d) (e) Initiator. Buyer. Influencer. Decider. Both (I) and (II) above Both (I) and (III) above Both (I) and (IV) above Both (II) and (IV) above All (I), (II), (III) and (IV) above.

<Answer > (a) It states that as the firm produces more products, it gains experience in the production methods over a period of time (b) It helps big organizations to realize economies of scale (c) It helps to decrease the initial costs of production (d) It helps the firm in gaining the strategic advantage of pricing its products lower than that of its competitors (e) The experience curve works well when a product is in the last stages of its life cycle. <Answer 49. Which of the following is considered as a significant demographic environmental factor that marketers > need to monitor the way people live, spend money and consume? 48. Which of the following statements is not true regarding the concept of the Experience Curve? (a) (b) (c) (d) (e) Lifestyle Population age mix Inflation Family dependency ratio Persistence of core cultural values.

<Answer 50. Which of the following strategies is used by the companies to redesign the process when they perform > poorly in financial terms, face intense competition or erosion of market share, or discover emerging marketing opportunities? (a) (b) (c) (d) (e) Benchmarking Decentralization Outsourcing Reengineering Customization. 8

<Answer 51. Coca-Cola realized that it had major competition from substitutes such as tea, coffee and fruit juices > which were available at cheaper prices. Therefore, it came out with smaller bottles so that the price of its product became competitive. Which of the following competitions was faced by Coca-Cola from tea, coffee and fruit juices? (a) (b) (c) (d) (e) (a) (b) (c) (d) (e) Generic competition Brand competition Form competition Industry competition Product competition. <Answer > Developing marketing strategies Planning marketing programs Managing the marketing effort Analyzing the marketing opportunities Evaluating target market.

52. Which of the following is the first step in the marketing planning process?

<Answer 53. Reliance is starting its ornaments chain store named Reliance Jewels. It is not acquiring the business of > any of its competitors. Which strategy is Reliance adopting? (a) (b) (c) (d) (e) (a) (b) (c) (d) (e) (a) (b) (c) Concentric diversification strategy Conglomerate diversification strategy Horizontal diversification strategy Backward integration strategy Horizontal integration strategy. <Answer > Quality Actionable Measurable Accessible Substantial. <Answer >

54. Which of the following is not a characteristic of variables used in effective market segmentation?

55. What is a Penetrated market?

The number of prospects who are likely to become customers and buy a product The set of buyers interested in buying a product The number of buyers who have an interest in the product as well as purchasing capacity and access to the market (d) The number of unqualified and inaccessible buyers who have an interest in the product (e) The market that comprises of customers who have already purchased the product. <Answer 56. What is the suitable reason behind the fact that it becomes easier for marketers to offer specialized > marketing services to organizational buyers? Organizational buyers spend more time to buy More people are involved in organizational buying Organizational buying involves bulk quantity Organizational buyers are fewer compared to individual buyers Organizational buying depends on operational variable, purchasing approaches and situational factors. <Answer 57. Which of the following possible aspects of consumer buying decisions is least likely to lead to an > organizational buying decision? (a) (b) (c) (d) (e) Comparison of product performance with expectations Decision based on highest overall evaluation Alternatives evaluated on important criteria Information gathered from internal and external searches Problem recognition triggered by self-actualization motives. (a) (b) (c) (d) (e)

58. In consumer behavior, cognitive dissonance (a) (b) (c) (d) (e) Occurs when the performance of a product bought, exceeds customers expectations Cannot be alleviated once it has occurred Typically occurs during the information search stage of the purchase decision process Refers to post-purchase psychological tension Happens more with low-involvement products than with high-involvement products.

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<Answer 59. The market for packaged foods and readymade garments has increased significantly because of the > increase in the number of women earning. Which of the following macro environment factors explains the above condition? (a) (b) (c) (d) (e) Demographic Legal Political Socio-cultural Technological.

<Answer 60. Nike concentrates on its core competencies such as shoe design, marketing and shoe merchandising and > has its manufacturing base in Asian countries. The strategy adopted by Nike is referred to as (a) (b) (c) (d) (e) Customization Outsourcing Benchmarking Reengineering Partnership marketing.

<Answer 61. Which of the following strategies is not employed by a firm in the decline stage of the product life > cycle? (a) (b) (c) (d) (e) Increase the firms investment to strengthen its competitive position and dominate the market Maintain the firms investment level until the market uncertainty passes by Introducing new advertising campaigns, new packaging and even product re-launches Selectively decrease the firms investment level by dropping unprofitable customer groups Harvest the firms investment to recover the cash quickly.

<Answer 62. A method of comparing the internal capabilities of an organization with the demands and challenges of > its external environment is referred as (a) (b) (c) (d) (e) SHOT analysis SWOT analysis Stakeholder analysis Shareholder analysis Ratio analysis.

<Answer 63. Zero, a sugar substitute product is a tough competitor to Sugar Free, which is a market leader in the > sugar substitutes. Sugar Free is the only product from the company. Zero is one of the components of the product mix of Reliance Foods. It has product lines in wheat, salt and beverages. It supplies all its product line to all over India. Which of the following will be the best strategy for Zero to attract and tap customers in this scenario? (a) (b) (c) (d) (e) It has to guard itself from other competitors It has to enter new markets Make alliances with small players in the market Distribute free samples to the target market Utilize its wide network all over India and provide incentives to distributors to push their product.

<Answer 64. The process of dividing a market into distinct groups of buyers with different needs, characteristics or > behavior who might require separate products or marketing programs is called (a) (b) (c) (d) (e) Market share Positioning Market evaluation Market segmentation Marketing audit.

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65. The major disadvantage of a mail interview versus a telephone or personal interview is (a) (b) (c) (d) (e) Having to offer incentives The low response rate The elimination of interview bias The lack of open-ended questions The cost involved.

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66. Ms. Ellen was the marketing research director for the local mall. She decided to conduct an experiment in the malls car park to find out whether shoppers would respond to a lower parking price to park in some of the under-utilized sections of the car park. Which type of market research was used by Ms. Ellen? (a) (b) (c) (d) (e) Exploratory Causal Descriptive Investigative Observational.

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<Answer 67. The buying process stage follows methods such as product value analysis by means of which the firm > will search chances of reducing the price of the products and alternately identify ways and means of producing those products through cheaper methods. Which stage of buying process is this? (a) (b) (c) (d) (e) Problem recognition Product specification Product supplier search Product selection Product purchase. <Answer >

68. Which of the following statements about consumer involvement in the purchase decision process is true? (a) (b) (c) (d) (e)

Limited problem solving typically lends to low consumer involvement Extended problem solving is used when purchasing low-involvement products A consumer making a low involvement purchase will typically consider many sellers There will be no external information sources consulted when making a high involvement purchase Minimal time will be spent searching for a low-involvement product. <Answer 69. Which of the following statements is false regarding Purchasing Power Parity (PPP)? > (a) PPP is used to compare incomes across nations (b) The PPP takes into account the cost of standard basket of products for each country (c) PPP cannot determine the relative value of two currencies (d) PPP does not consider the subsidies provided by a government for essential goods like food, agriculture, utilities and medical care (e) The higher the PPP of a country, the more buying power it enjoys. <Answer 70. Which of the following does refer as value to a customer? > (a) A technical measure of a companys selling price relative to its production costs (b) A measure of the mark-up charged by companies (c) The lowest prices available to consumers (d) The difference between the benefits derived from the product and the cost of acquiring the product (e) The quality offered to customers. <Answer 71. Vaartha, one of the leading telugu newspapers in Andhra Pradesh is trying to survive in the market on > account of negative demand for its subscription. While other newspapers have been logging in readers in flocks. Vaartha has faced a net negative increase in its subscriber base. In other words, people who are cancelling their subscription are much more than those who are acquiring new subscriptions from Vaartha. Which of the following would be the best marketing task that Vaartha could apply to deal with the negative demand? (a) (b) (c) (d) (e) Analyze reason for customers discontinuing subscription with Vaartha newspaper and take necessary action Raise prices for the advertisements to be printed in the newspaper Measure the size of the potential market for developing new look to satisfy the demand Maintain its quality of news and decrease the price of paper Reduce demand temporarily. 11

<Answer 72. Iodex launched its green colored pain reliever to fight the competition from Moov. This action was, > however late as Moov by then had already become an established brand. This is an example of (a) (b) (c) (d) (e) (a) (b) (c) (d) (e) Selective competitor Slow reactor Tough competitor Unpredictable competitor Form competitor. <Answer > Sales analysis Marketing audit Market share analysis Financial analysis Marketing expense-to-sales analysis.

73. Which of the following judges a companys performance vis--vis its competitors?

<Answer 74. Hewlett-Packard manufactures printers ranging from Rs.3,000 for home and small office segments to > heavy duty color printers which costs Rs.1,00,000. Which of the following segment is concentrated by Hewlett-Packard? (a) (b) (c) (d) (e) Market specialization Product specialization Full market coverage Single segment concentration Selective specialization.

<Answer 75. Which of the following approaches of organizational purchasing, segments industrial market on the basis > of level of impact of influential units of organization? (a) (b) (c) (d) (e) I. II. III. IV. (a) (b) (c) (d) (e) (a) (b) (c) (d) (e) Nature of existing relationships Purchasing function General purchasing policies Power structure Company size. <Answer > Internal record system. Automatic identification system. Marketing intelligence system. Marketing decision support system. Only (IV) above Both (II) and (III) above Both (III) and (IV) above (I), (II) and (III) above (I), (III) and (IV) above. <Answer > Industrial dealer Reseller market Institutional market Government market Original equipment manufacturer. <Answer >

76. Which of the following is/are the components of Marketing Information System?

77. Hero Honda buys tyres from MRF Tyres Ltd., to fit their motorcycles. This is an example of

78. Which of the following refers to a strong urge that drives a persons activities towards unfulfilled needs and wants? (a) (b) (c) (d) (e) Perception Belief Attitude Motivation Cognitive dissonance.

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79. The decrease in the average cost incurred in the production of goods in large numbers is referred to as (a) (b) (c) (d) (e) Economies of scale High capital requirements Low asset salvage value Proprietary products Learning curve.

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<Answer 80. Brigade technologies, a Mumbai based financial services company planned to start its offices in > Hyderabad, Chennai, Bangalore, New Delhi and Calcutta. So it took around 20,000 Sq. ft. flats in all the cities for its offices. It published a tender notice in leading newspapers for the interior decoration and furniture. Wise Decors, a Hyderabad based interior decorating firm came up with a proposal of building cubicles for individual employees, centralized air-conditioning, window screens, decoration flowers, safes and telephones. Another bid was from Transformations, a Mumbai based firm having a nation wide network and it also offered the same features but the price was more than Wise decors. In addition to that they provide maintenance and security services at a very nominal cost for those who would opt their interior decorations. Finally Transformations won the contract, though it was a costly proposal. Which of the following reasons best explains regarding the contract won by the Transformations? Wise Decors viewed proposal just as interior decoration only Transformations proposal was more profitable than Wise Decors Transformations followed a true system selling approach by taking the total view of customers needs Transformations is also a Mumbai based firm Transformations was better equipped than Wise Decors. <Answer 81. World-one music, an organization started its satellite music due to the peoples affluence to the world > wide music. It supplies a set top box and small speakers which can be kept in house, car, office, and restaurants. For this it charges Rs.2,500 initially and a monthly charge of Rs.200. They believe that there are no substitutes for its product. It conducted a market research in metros regarding people tastes, interest in different kinds of music, and people showed interest in listening to world music. In the research they didnt mentioned any price for the services. Though the production of set top box and transmission of programs is costly, it started producing large quantities believing that per unit output cost can be significantly reduced. But it failed due to less orders. Which of the following aspects might make the company successful? (a) (b) (c) (d) (e) It had spent more on advertising They need to strike balance between the value and the cost The organization must be customer led not product oriented They might conduct market research on the basis of demographics The production might be according to the orders. (a) (b) (c) (d) (e)

<Answer 82. Customers perceive the Tanishq jewelry brand as very high priced, while the reality is quite the opposite > as Tanishq offers jewelry that suits every budget. Which of the following conditions made the customers to perceive Tanishq as high priced brand? (a) (b) (c) (d) (e) (a) (b) (c) (d) (e) Over positioning Under positioning Doubtful positioning Confused positioning Unique selling proposition. <Answer > Services differentiation Personnel differentiation Channel differentiation Image differentiation Product differentiation.

83. Differentiation achieved through having better-trained people is a type of

<Answer 84. In which of the following strategies do marketers continue to depend on the old, low priced products for > the bulk of their sales and promote the old product heavily? (a) (b) (c) (d) (e) Trading down strategy Repositioning strategy Trading up strategy Product mix contraction strategy Product mix expansion strategy. 13

<Answer 85. Hershey Foods Corp. offers a line of candy that includes Kit Kat, Mr. Goodbar, Krackel, Hersheys > Kisses, New Trail, Reeses Peanut Butter Cups, Rolo, Twizzlers, and Nibs in different assortments. This example best illustrates Hersheys product mix (a) (b) (c) (d) (e) Width Depth Length Volume Consistency.

<Answer 86. GTO Inc., a security device manufacturer was performing poorly after the death of the CEO Mr. Alex. > Their financial statements are showing huge losses. Earlier it used to be a monopoly in the market. It is very strong in technology and it is the first entrant in the market. Now it is facing intense competition and the market share is eroding every month. The competitors are giving tough competition in every front. It has a very good distribution channel network. Which of the following strategies is most suitable for GTO Inc., to improve on business performance? (a) (b) (c) (d) (e) It has to focus on activities in which they are strong and outsource the remaining activities It has to set their own benchmarks and has to monitor its performance continuously Employees need to be given more autonomy and encourage to take initiative It has to redesign the organization structure, business process and associated systems It has to offer services like selling and delivering online through internet. <Answer >

87. Which of the following is the process of establishing and maintaining a distinctive place in the market for an organization or its specific product offers? (a) (b) (c) (d) (e) Profiling Profiling segmentation Segmentation Positioning Targeting.

88. The use of symbols to provide strong brand recognition is used in which of the following types of differentiation? (a) (b) (c) (d) (e) Product Services Personnel Image Channel.

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89. Anita buys carpets for use in an office area. Which of the following statements determine the carpets to be consumer or industrial product? (a) (b) (c) (d) (e) The price of the carpet The type of selling organization The terms of the sale The buyers intended use of the product Whether the carpet is a replacement item.

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90. Which of the following strategies demand the launching of a product at a lower price and with heavy promotion? (a) (b) (c) (d) (e) Rapid skimming Rapid penetration Slow skimming Slow penetration Medium penetration.

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<Answer 91. Value Research is a custom research agency which conducts market research for the companies on the > demanded objectives by the company according to their budget. Mr. Raghu is starting a new youth reality show in MTV. So he approached Value Research and asked them to conduct research to gather information regarding the consumer viewing habits of T.V. programs, how often they watched earlier reality shows of Raghu. He had a limited budget from the MTV. Which of the following would be the best way for Value Research to gather information? (a) (b) (c) (d) (e) Sending mails to the target audience and asking them about their tastes and preferences Interviewing the targeted audience about their tastes and preferences through telephones Conducting personal interviews in shops and big malls Using their personnel to observe college students and youth discussions about the T.V programs Conducting a survey by using questionnaires.

<Answer 92. A differentiated product may be unique in the market place, but it will only be successful under which of > the following circumstances? (a) (b) (c) (d) (e) It satisfies customers needs If the price differential is minimal If the brand can be classified as aspirational If the brand ambassador is popular If its promotion is less.

<Answer 93. It becomes very difficult to differentiate the product of one producer from that of its rival. Thus in order, > to achieve a competitive advantage, companies have to look for alternative ways of differentiating their products from those of the competitors. In addition to product differentiation, marketers have also begun to differentiate their products on the basis of the service they offer along with their products. Which of the following aspects does not relate to service differentiation? (a) (b) (c) (d) (e) (a) (b) (c) (d) (e) (a) (b) (c) (d) (e) Ordering ease Delivery Installation Durability Guarantees. <Answer > Convenience products Specialty products Unsought products Shopping products Industrial products. <Answer > Few sellers can afford the technological know-how Entry of new firms due to promising opportunities Intensity due to many brands competing at the same time Firms withdrawing in case of lower exit barriers Firms adopting aggressive pricing strategies.

94. Insurance products are the examples of

95. In maturity stage of product life cycle, competition is characterized by

<Answer 96. Virgin mobile a U.K based telecom company wants to start its mobile services in India. As Indian > mobile industry is already cluttered by giants like Airtel, BSNL, Idea and Vodafone, it is planning to target segments which can generate a good business for them. It is offering value added services such as payment for receiving calls, one touch Value Added Services (VAS) access, call more for less etc., Of the following strategies which one strategy can generate most revenues to Virgin mobile? (a) (b) (c) (d) (e) Buy out any of the existing competitors Targeting corporate market Targeting youth of age between 15-25 Targeting people of age group between 25-40 Promote their product by giving new attractive offers to attract the customers.

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<Answer 97. Indiaplaza.com is one of the Indias largest customer-to-customer online trading communities. It offers > one-to-one trading format in an auction format on the web. Individuals can trade in thousands of categories: paintings, stamps, coins, toys, dolls, etc. Each day over 500 new items are offered and more than 1000 auctions are in progress. Which of the following would be the primary advantage for Indiaplaza.com in extending its business online? (a) (b) (c) (d) (e) It has the option of turning its website into a sales as well as an information channel It can meet customer needs better It can send trade related auctions advertisements to customers It can speed up internal communication It can collect fuller and richer information about customers, prospects and competitors. <Answer >

98. Which of the following refers to the comfort with which the customer can place the order for the product? (a) (b) (c) (d) (e) Delivery Installation Ordering ease Guarantee Disposal.

<Answer 99. Which of the following forms of differentiation advantages is reduced if the technology used in a product > becomes obsolete fast? (a) (b) (c) (d) (e) Product form Product design Product features Product quality Product durability. <Answer >

100 A specialty product . (a) Requires minimal effort to purchase (b) Is purchased frequently (c) Requires purchase planning, and the buyer will not accept substitutes (d) Is generally less expensive than other items in the same product class (e) Prompts the purchaser to make comparisons among alternatives. END OF QUESTION PAPER

Suggested Answers
Marketing Management I (MB1C1): October 2008
Answer 1. C Reason The straight rebuy is characterized by the routine purchase of familiar products from regular suppliers. It is common for suppliers to set up automatic ordering systems to ensure that buyers continue to order from them and to make the process more convenient. (a) In a modified rebuy, the buyer requires additional information or a change to the original product. (b) New task buying is a situation in which a buyer purchases a product for the first time. A persons attitude is a set of his feeling and the way in which he reacts to a given idea or thought. Attitudes can be positive, negative or neutral. Customer attitudes are based on their past experiences with the products and through their interaction and relationship with their respective reference groups. Marketers can use several methods like observation, personal interview and direct questionnaires to study the attitudes of the customers. The simplest method would be to phrase a set of direct, close-ended questions on a continuous five point scale (likerts summated rating scale).
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Liquidity ratios are current ratio, quick ratio, average collection period, Inventory turnover ratio. Long term capitalization is a debt ratio, return on equity is a profitability ratio and dividend yield is a market value ratio. The income left after purchasing basic needs is known as discretionary income. Customers use this for savings or purchasing non-essentials like consumer durables. (a) The income left to consumers after tax is called disposable income. All other options are not applicable. In sales era, marketers focused their efforts only on selling their products to the customers. Manufacturers believed that the success of their business depended on outselling the competition. Marketers focused their efforts only on selling their products to the customers. Any firm tries to gain an advantage over its competitors. The industry concentration or the number of business units operating within a particular industry indicates the amount of rivalry. When a few firms enjoy a large market share, rivalry among them will be less. On the other hand, if significant market share is enjoyed by a large number of small players, the rivalry among them will be high mainly because of equality in size. When rivalry among firms is high, it leads to price wars, advertising battles, launches of new products and increased customer services and warranties. A lack of differentiation among the products of the players in the industry also leads to intense competition. Similarly, when the switching costs for customers are low, rivalry among firms is high. According to Patrick.M.Lencioni, when a company sets social and behavioral standards for its employees, values become approved values. The three psychographic dimensions are personality, motives and lifestyles. Psychographic segmentation helps marketers understand buyer behavior better and design communication programs, which will appeal to the target audience. Split loyals are those customers who use more than one brand. Their loyalty is divided among two or three brands. Marketing decision support system have the flexibility to represent data using advanced graphic tools and be able to provide possible solutions to different inputs. It collects and processes information using computer software programs, advanced statistical tools and other such techniques to obtain a scientific solution for marketing problems. Econometric analysis is a past sales analysis technique that determines the sales system using statistical tools by developing sets of equations. (b) Exponential smoothing looks at the weighted average of past sales giving a higher weightage to more recent sales. (c) Demand analysis (statistical) determines the effect of factors such as marketing expenditure and the price of the product on its sales. Options (d) and (e) are not past sales analysis techniques The major reason behind Target stores partnerships is option (d) to reinforce its image in the market and provide quality products to its customers. As already it is having loyal customer base that are looking for trendy yet affordable range merchandise it wants to provide quality and trendy products Option (a) is not apt because it is not the only factor. Option (b) is not correct because the designer cloths are costlier than the normal cloths. Option (c) is also not a correct option. Because designer products are very costly to produce. Option (e) is not relevant because it is not at all an inexpensive way because partnerships include large amount of investments. In the given example, Sandy is in the purchase stage of the buying decision process. As she already recognized problem, searched information and now decided to purchase.

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Customer inclination to use credit depends on disposable income, interest rate, size of down payments, monthly installments. The societal-marketing concept holds that the organizations task is to determine the needs, wants and interests of target markets and providing quality products. Organizations must also help maintain and improve societys well being. Satyam computers not only satisfying their clients needs and wants but also helping the society to improve. Generic products are unbranded, plainly packaged products and are less expensive than branded products. Ansoff has proposed a model to identify such growth patterns, know as Ansoffs product/market expansion grid. In this grid, we can analyze market opportunities through a four quadrant matrix. The third quadrant denotes the strategy for growths in the new markets of existing products known as the market development strategy Option (d) is the best fitting buying decision in this condition for Apna Bazar. Because of the printers the customers are frustrated and they are already complaining against that. If the management doesnt take an active step and purchase Ink jet printers the customers may change their store. So there is a threat of decrease in sales. As Logitech is not producing Inkjet printers they have to purchase Inkjet printers from some other company immediately. If they continue with same printers or repair the existing ones or purchase new dot matrix printers from other company the time of billing wont decrease. Hyderabad House formed a strategic alliance with local player since it will help them to understand the culture of the new country and also help to add on the present market of the existing player to the new customers which it has been targeting for. The new partner will look after all the legal and labor litigations. So, the Hyderabad House management can focus more on its strategies for improving its business rather than concentrate for small things and go into trouble. After habituating itself with the conditions it can break the alliance and work itself. Hence option (c) is the answer. Quotas are quantitative goals established in terms of sales volume, and are assigned to individual sales personnel. Quotas specify the desired level of performance expected from a specified marketing unit. Sales quotas are effective for strategic planning, directing, controlling and evaluation of a marketing units sales effort. Organizations can use various techniques such as material requirement planning and Just in time to take organizational buying decisions. In materials requirement planning, a firm forecasts its sales and develops its production schedule accordingly; the firm then orders the goods according to its production schedules. This help the company avoid buying too much or too little of the raw material. On the other hand, Just in time is a method for maintaining the minimum inventory of raw materials and finished goods. In this method, raw materials are purchased on the basis of customer demand. In other words raw material is procured only when the production process is about to begin. Option (b) best describes the success of Hero Honda as it innovated value of the mileage and performance and produced bikes according to the customers needs and wants. Not only producing the desired value they also sustained and communicated the value over a period of time. Option a does not best describes the reason for success because every company is strong in the technological front. Option c, companies failed not only for poor communication there are other reasons also Option d, e are not relevant because every company is preferring the mileage and performance as the core value of a bike.

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Customers exhibit extensive problem solving buying behavior when they indulge in buying expensive, infrequently purchased unfamiliar products. They gather a lot of data on the various brands available. Depression is a state of intense recession Where the rate of unemployment is very high, wages are very low, Gross National Product (GNP) drops and customers lack confidence in the economy. The government uses various measures like the monetary policy and fiscal policies to eliminate the effects of recession and depression. The marketing concept holds that the key to achieving its organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating superior customer value to its chosen target markets. (b) The selling concept holds that consumers and businesses, if left alone, will ordinarily not by enough of the organizations products. The production concept holds that consumers will prefer products that are widely available and inexpensive. (c) Production concept concentrates on achieving high production efficiency, low costs, and mass distribution. (d) The societal-marketing concept holds that the organizations task is to determine the needs, wants and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors do. (e) The product concept holds that the consumers will favor those products that offer the most quality, performance or innovative features. Consistency refers to the closeness exhibited by the products lines in production requirements, distribution, end usage, etc. (a) Product width is the total number of product lines a company carries. (b) The depth of a product mix is the assortment of sizes, colors and variations offered for each product in the product line. (c) The length of the product mix is the total number of items in that mix. (d) Option is not applicable. Market challengers are runner-up companies that aggressively attack competitors to get more market share. Marketing programs have to be planned in such a way that the strategies formulated are properly implemented and aid in the achievement of organizational goals and focus the entire marketing program in support of the chosen positioning strategy. Niche marketing can be defined as the marketers effort to position their product or service in smaller markets that have similar attributes and have been neglected by other markets. Niche is a small segment of the market that has some specific unsatisfied needs. The fundamental difference between segment and niche is that a segment is usually a broad market place where many competitors operate. A niche is a comparatively smaller segment. The firm should also clearly differentiate itself from its competitors. The company should not introduce products that compete with its own products in the market. Operating variables include factors like the technology of the company, product and brand use status and the customer capabilities. Monitoring information is obtained by scanning of information sources on a continuous basis and includes information on industry, competitors, etc obtained from newspaper articles, magazines, trade journals, government reports and annual reports. Government agencies are the largest buyers of goods and services in a country. The purchasing process of the government is influenced by different groups of people at various levels, who legislate, select and analyze the goods and services before actually purchasing them. This makes the buying procedures complex. Avoidance group is the reference group to which an individual does not hold any membership and tries to resent values and beliefs of the group.

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Marketing cost analysis is very important for marketers to conduct a marketing cost analysis since it provides them with the estimate of the extent of profits that each product line brings to the company. (b) Customer profitability analyzes the revenues of the company to identify the profit contribution of a customer. (c) Financial situation analysis is used to analyze the current situation of an organization and ratio analysis is one of the widely used tools for financial situation analysis. (d) Contribution analysis deals with techniques for determining profitability at the market segment level, the product level, the distribution level and the customer level. (e) This option is not relevant. Measuring the defection rate helps the companies to pay close attention to the rate at which they lose customers. This measurement is not helpful in attracting new customers. Line stretching occurs when a company lengthens its product beyond its current range of products offered to consumers. Limitations of facilities, financial resources, management capabilities, marketing skills and brand image are weakness for a business. Culture is not a source of weakness for business. Strategic planning is the process of developing and analyzing the organization's mission, overall goals, general strategies, and allocating resources. The strategic planning process is carried out at the corporate level, business level, and product level. It begins with an analysis of the organization's current strategic posture, but strategic planning focuses on the future. The segment by segment planning means going one step at a time so that competitors should not get a clear picture of the direction in which the organization is moving. Individuals and not the organizations make purchase decisions in organizations, although the philosophies and procedures of the organizations provide them with a framework and restrict the purchasing patterns. The risk taking and risk averting nature of a buyer is another criterion that has to be looked into for serving them. This is a personal characteristic. Selective competitor, who reacts only to certain types of strategies, perhaps to added product features or line extensions. In opportunity and issue analysis, the marketing manager analyzes opportunities available to the company in the market and the threats to company. In the issue analysis, the manager determines the issues related to strengths and weaknesses of the company and highlights the areas which marketing plan has to focus. the the the the

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Demographic segmentation is the simplest method to segment organizational markets. The demographic variables to segment organizational markets include the industry, company size and customer location. Segmentation by loyalty status refers to the repurchase of a kind due to various levels of allegiance a customer exhibits. Secondary research is generally quicker and cheaper than primary research, so most research projects would begin by reviewing what secondary data is already available. Buying decisions of organizations are also influenced by such as environmental, organizational, social and personal factors.

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A person who initiates the idea of purchasing the product is called an initiator . He recognizes that the problem can be solved or avoided by acquiring the product. A person whose view and advice influence the buying decision is an influencer. A person who decides where, when, why and how to buy the product is decider. And the person who actually purchases the product is a buyer. Here Rakesh didnt take initiation to buy the cycle so he is not an initiator. But he decides whether to buy or not. So he is a decider and he only bought the cycle so he is a buyer. The experience curve works well in certain circumstances. When a product is in the early stages of its life cycle, the experience curve provides the greatest benefits to organizations. Population age mix falls under the gamut of demographic environment. (a) Lifestyle is an element of the psychographic environment. (c) Inflation is an important element of the economic environment. (d) Family dependent ratio and (e) existence of core cultural values are the elements of the social environment. Reengineering is the process of redesigning the organization structure, business processes and associated systems to achieve a dramatic improvement in business performance. Companies reengineer their processes when they perform poorly in financial terms, face intense competition or erosion of market share, or discover emerging marketing opportunities. The other options are wrong which do not redesign the organization structure when the company is performing poorly in financial terms and face intense competition. Form competition is the one in which a company sees itself competing with all the other companies offering similar benefits. Generic competition is a form of competition where all the companies compete for the same disposable income of the customers. As customers have limited disposable income, they can buy only a limited number of things with it. Therefore, all marketers try to ensure that their products are included in the list of immediate purchases of every potential customer. Industry competition is the one in which a company competes with the same kind of products manufactured by other firms. Brand competition is one in which a company competes with the companies offering similar products to the same consumer segments. Analyzing the marketing opportunity is the first step in the marketing planning process. In conglomerate diversification strategy, the company tries to perform unrelated business activities. Reliance here is entering into totally new business which is totally new to its business. So it is adopting conglomerate diversification strategy. Concentric diversification strategy, a company tries to diversify by serving a new customer base with products that are related to the existing product category. If the company tries to attract current customers with new products even if the company has to acquire a new manufacturing capability, it is known as horizontal diversification strategy. And if it plans to adopt a backward integration strategy, then it will produce its own raw materials by starting a dairy farm for milk, and producing wheat etc. If it plans to integrate horizontally, then it may acquire the business of one of its competitors. Quality is not a characteristic of variables used in segmentation. The other three are all criteria to use in deciding whether the resulting segments are suitable for use by a company.

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Penetrated market is the market that comprises of customers who have already purchased the product. The number of customers who are likely to become customers and buy a product is called a market. The set of buyers interested in buying a product is called Potential market. The number of buyers who have an interest in the product as well as purchasing capacity and access to the market is called available market. The number of unqualified and inaccessible buyers who have an interest in the product is called restricted market. Organizational buyers are fewer compared to individual buyers so it becomes easier for marketers to offer specialized marketing services to organizational buyers. The five stages of decision-making are problem recognition, information search, evaluation of alternatives, purchase decision and post purchase behavior. The process of buying starts when a person realizes that he has a problem or an unsatisfied need. Self-actualization needs are an individuals need to realize his full potential through continuous growth and self-development. Hence problem recognition triggered by self-actualization motives is least likely to lead to an organizational buying decision. When a customer is not satisfied with a product purchase, and if the competitors brands have the features that the customer was originally looking for, he goes through cognitive dissonance. It Refers to post-purchase psychological tension The change in the attitudes, beliefs, norms, values and lifestyles relate to sociocultural environment. These forces can change the market dynamics and marketers can face both opportunities and threats from them. Outsourcing offers cost saving, lower expenses and specialization of products and services and helps the company become more competitive. All other options are irrelevant. Introducing fresh advertising campaigns, new packaging and even product relaunches is a strategy for the maturity stage. Regaining market share is difficult during the decline stage. Therefore, firms will not invest in high cost activities such as advertising and sales promotion. SWOT analysis (standing for Strengths, Weaknesses, opportunities, Threats) is a widely used method of comparing the internal capabilities of an organization with the demands and challenges of its external environment Option (e) is the best strategy for Zero, because it is a tough competitor for the market leader Sugar free. Sugar free is the only product from the company. But Reliance has wide network all over India so it can utilize that network and can beat the market leader sugar free. Distribution Network is an advantage for Reliance foods. Market segmentation can be defined as the process of dividing a market into smaller distinct groups of buyers with different needs, characteristics or behavior who might require separate products or marketing programs. (a) Market share refers to a companys share in the target market it serves as compared to its competitors. (b) Positioning is creating an image in the minds of customers. (c) Market evaluation refers to assessing the feasibility of a market. (e) Market audit is a comprehensive review of a firms marketing environment, objectives, strategies, and goals.

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One of the biggest problems in mail interviews is the low response rate. It is believed that only 20 to 40 percent of the respondents reply to mail interviews. The response rate in telephonic interviews is also low, since on an average only one call per six calls is picked up. In personal interviews respondents may be reluctant to share the confidential information, which may be essential for the research process. In causal research, the cause and effect relationships between two variables are analyzed. This research helps managers select a particular strategy. It is carried out by considering a detailed questionnaire. (a) Exploratory research helps the management identify the presence of potential opportunities and threats for the company. (c) Descriptive research is generally conducted after the exploratory research. As the problem is clearly defined in exploratory research, the quantum or intensity of the problem is identified. Option (d) and Option (e) are not applicable. Product specification is a crucial stage in buying process where the firm starts negotiating with the suppliers by giving the technical specifications of the product. Methods such as product value analysis are adopted, by means of which the firm will search chances of reducing the price of the products and alternately identify ways and means of producing those products through cheaper methods. When customers buy low-cost, regularly purchased/routine products, they do not make significant efforts to gather much information about the product. Instead they choose the brand, which they are familiar with or have been choosing for a long time. Purchase decision in such cases is quick. Therefore, customer involvement in such purchase decisions is low. The economic performance of a country is measured by its Gross Domestic Product (GDP). PPP can help in comparing the relative value of two currencies. Purchasing Power Parity (PPP) is used to compare incomes across nations. The PPP takes into account the cost of standard basket of products for each country but does not consider the subsidies provided by a government for essential goods like food, agriculture, utilities and medical care. The PPP analysis help in determining the relative purchasing power of two countries, the higher the PPP of a country, the more buying power it enjoys. Value is a subjective measure as people will perceive different benefits from any given product. However, it can be best described as the difference between the benefits derived from the product and the cost of acquiring the product. There is negative demand when customers have a dislike for a companys product. In this case the discontinuing with subscription is a sign of dislike for its product probably due to availability of better alternatives. In case of negative demand, marketers must analyze cause for dislike and take necessary actions like marketing program consisting of product redesign, lower prices and more positive promotion can change beliefs and attitudes. Hence, option (a) is the answer. Slow reactor type of competitor reacts very slowly to the competition. (a) Selective competitor is a type of competitor who reacts to only certain types of strategies, perhaps to added product features or line extensions. (c) Tough competitor is a type of competitor who strongly retaliates to the slightest move of his competitors. (d) Unpredictable competitor is a type of competitor who may or may not respond to the strategies of his competitors. (e) Option is not relevant Market share analysis judges a companys performance vis--vis its competitors. (a) Sales analysis is a process of analyzing the actual sales and comparing them with the projected sales. (b) Marketing audit is defined as a comprehensive, systematic, independent and periodic evaluation of a firms marketing activities, goals and strategies in order to identify the opportunities and problem areas, and suggest suitable recommendations for improving the firms overall marketing performance. (d) Marketers use financial analysis to formulate profitable strategies for the company and to identify the factors determining the firms rate of return on net worth. (e) Marketing expenses to sales analysis helps a company analyze whether its marketing expenses are within limits or if it is overspending. In full market coverage the company targets the full market rather than any specific segment. 23

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Power structures in different organizations vary widely. Within this approach, suppliers can segment their customers on the basis of the level of impact of influential units of organization. Company tackles the power structure through its advanced technical skills. The components of a marketing information system are: the internal record system, marketing research system, marketing intelligence system and the marketing decision support system. Automatic identification system is not a component of the marketing information system. Original equipment manufacturers buy industrial products and incorporate them into their final products. A motive is a strong urge that drives persons activities towards unfulfilled needs and wants. Customers are influenced by a motive or a set of motives when they have unfulfilled needs. Economies of scale refer to a decrease in the average cost incurred in the production of goods in large numbers. Transformations clearly viewed the customers requirement they viewed the requirement in a broader sense. As Brigade is starting its new offices in different cities there is a need for a maintenance and security staff also. They had a nation wide network and therefore there is no need for hiring separate firms for different states. Transformations understood the need of these staff for brigade and proposed the same thing, by this transformation was successful. Option (a) is not best answer because it was not the only problem, the far sightedness of transformations added to the failure of wise decors. Transformations proposal is not at all cheap when compared to Wise decors. Options d and e are not relevant. World-one music was in a Marketing myopia it failed not because markets are saturated but because of the failure and short sightedness of the management. It should be customer led not product oriented. Though there are so many features and technical strengths in the product it should meet the customers need and wants. Spending more on advertising, celebrity endorsements make the product much costly and cannot help the company. The organization has already made a balance between value and the cost, as the production itself is costly and the transmission of world music is also costly. Though they follow the process of production according to the orders they may not get profits Over positioning is the situation where the buyers may have a very narrow image of the companys brand. Over positioning is usually seen in cases where the firm initially promotes its brand as a premium brand. Differentiation achieved through having better-trained people is personnel differentiation. (a) Services differentiation lies in adding valued services. (c) Channel and (d) image differentiation are through better channel infrastructure and corporate advertising campaigns respectively. (e) Product differentiation implies differentiating on the basis of product form, features, benefits etc. (c) By adding a higher priced or prestige item to a product line, a manufacturer trades up in the hope of attracting customers for its lower-priced items as well. (a) Marketers who adopt a trading down strategy add low priced products to their already existing line of specialty products. (b) Product repositioning is more a psychological exercise to play on the collective minds of the target group. (d) Sometimes firms eliminate products or product lines to thin out their product lines that contribute little to profits. (e) Product expansion necessitates adding new products to an existing product line or adding new product lines to an existing product mix.

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The depth of a product mix is the assortment of sizes, colors and variations offered for each product in the product line. (a) Product width is the total number of product lines a company carries. (c) The length of the product mix is the total number of items in that mix. (d) Option is not applicable. (e) Consistency refers to the closeness exhibited by the products lines in production requirements, distribution, end usage, etc. As the company is in huge losses and there is a cut throat competition, the market share is eroding. In this context the company needs to redesign its organization structure and its process of doing the business. i.e., it has to go for reengineering strategy. It helps in achieving an improvement in its business performance. There is no use of outsourcing its work as it is expert in manufacturing security device. If it setting its own benchmark it cannot be in the top position. As the market leaders performance may be more than this benchmark. Initially it has restructure its organization then only it can give more autonomy to its employees Thought it offers online services customers prefer to buy in person as this is a security device they may want to test it practically in their presence. Through internet it is not possible. Positioning uses all elements of the marketing mix to establish in the minds of customers and potential customers how a product differs form its competitor. A company may differentiate itself from its competitors by image; the particular image or "personality" it acquires is created by its logo and other symbols, its advertising, its atmosphere, its events and personalities. (a) Product differentiation implies differentiating on the basis of product form, features, benefits etc. (b) Services differentiation lies in adding valued services. (c) Differentiation achieved through having better-trained people is personnel differentiation. (e) Companies can achieve a distinct differentiation for their products on the basis of the distribution channel they use. Products can be classified depending on who the final purchaser and how he uses them. Based on the usage of the products, they are divided into consumer products and industrial products. Rapid penetration strategy demands the launching of a product at a lower price and with heavy promotion. The best way in which Value Research can gather information is conducting a survey by using questionnaires. Questionnaire method is the best way to gather information since it provides quality data and is less costly compared to personal interviews. As the market for realty shows now-a-days is very huge, telephonic interviews and mail interviews are not preferable. Personal interviews are very costlier and also the possibility for respondent being reluctant to share the essential information or giving false answers is very high. Using their personnel to observe youth and college students discussions is not appropriate since it cannot provide the adequate information regarding consumers viewing habits. Sending mails is also not a right option because the response rate is very low. Differentiation only works if buyers appreciate the point of differentiation. If the differentiated features do not satisfy their needs, the product is less likely to be bought. Products are expected to perform satisfactorily during their useful life. This is called durability. This also comes under product attributes. This is not a service aspect.

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Unsought products are those that a customer purchases when faced with a sudden problem and insurance is an unsought product. (a) Convenience products are those, which are relatively inexpensive and are bought frequently. (b) Specialty products are products that have one or more unique characteristic features and are not available freely. (d) Shopping products are those for which a buyer is willing to spend time and effort in planning and making purchase decisions. (e) Industrial products are those that are used to produce other goods. In the maturity stage, competition is fierce as many brands compete at the same time. Sales start declining and customers try out new products and substitutes. Therefore, each competitor tries to improve his product and highlight the product benefit. Option c, targeting youth age between 15 and 25 is the right option Because youth are the main segment who contribute 50% of telecom industrys revenue. They are the significant users of SMS, VAS. It is almost impossible for Virgin mobile to buy out a competitor as all the existing players are very big companies with very deep pockets. Option (e) could not fetch revenues because many customers dont want to change their number and only offers cannot attract new customers in telecom industry Above all attracting an existing customer of another brand is very difficult as most of the customers never like to keep on changing their services or their mobile numbers. Corporate market is also cluttered by the market giants and they also dont want to change their number. Age group between 25 and 40 also come in any of the options a, b, d and e. Option (a) is the answer. Extending a business online has many advantages for companies. However, in the context of Indiaplaza.com which is more like a facilitator of trade and auctions the best advantage is that the website serves as a sales and information channel. Ordering ease refers to the comfort with which the customer can place the order for the product. If the technology used in a product becomes obsolete fast, the advantage derived by the marketer from its durability also gets reduced. Specialty products are products that have one or more unique characteristic features. Customers are aware of what they want and will not accept a substitute for these products even though they might have to wait for a considerable time to get the product.
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