MARKETING INTERVIEW QUESTIONS

Q1. Explain what is meant by the term advertising elasticity.

Ans. It measures the responsiveness of the demand for a product to changes in the
amount of advertising spent on it.
Note# in simple words elasticity can be taken as elastic (due to its property to stretch).
It defines how proportionately demand of the product is changed, when money is
spent on advertising. Eg. 2% increase in advertising expenses, increases sales by 5%

Q2. When looking at a firm’s marketing strategy you notice the term 'asset-led'
marketing. What does this mean?
Ans. When company uses its assets as a major part of its marketing strategy. The firm
is using something that is familiar to consumers e.g. its name or logo to attract
potential buyers of their products.
Note# when company uses its brand image, logo to promote its existing or new
product

Q3. Our 'below the line operations' continue to be disappointing. What does the Chief
Executive mean by this?
Ans. It means Non-media advertising or promotion when no commission has been
paid to the advertising agency. Like direct mail, point of sale displays, giveaways.
These are short-term incentives, largely aimed at consumers. It is one of the most
effective and cost efficient ways to communicate with the target markets. This has led
to a shift from the regular media based advertising.
Note# an example of BTL, Ring tones and music videos on cell phones are helping
the entertainment industry to promote for a music video or a movie for dirt-cheap rate
as compared to media promotion.

Q4.Who or what is the Boston Matrix?

Ans. It’s a management tool that allows firms to analyse the current position of their
products in the market (market share and growth).
Note# it’s a matrix where we show growth on y-axis and market share on x-axis and
we locate our position point on the graph

Q5. Explain, using examples what is meant by the term 'above the line' marketing
Ans. marketing term referring to promotional expenditure using independent media
channels, such as television and radio It refers to the use of a medium over which the
business has control. The channels used normally allow access to a mass market.

Q6. Which of the following is an example of a loss leader?

Ans. The loss leader is a pricing strategy, which involves selling products/services at
a price that will generate little or no profit. This attracts customers. For example, you
buy a portable TV from your suppliers at 16000 and the additional costs of selling the
TV add up to 4000, totalling a break-even selling price of 20,000. You sell the TV for
a reduced price of 18,000 therefore making a loss of 2000 for each one sold. But to
the customers, they will see this price as a bargain due to other shops selling the TV at
say, £22000.
 Q7. 'Kaizen' is?
Ans. It means 'continuous improvement'. A Japanese developed method of managing
a business. Frequent but small improvements are aimed for. All members of the firm
are involved. “Kai” to change and “Zen” good”. This system is based on making little
changes on a regular basis: always improving productivity, safety and effectiveness
while reducing waste. Companies like Toyota and Cannon use this concept.

Q8. The opportunity cost to a business of an investment is?

Ans. It’s a next best investment now foregone.
Note# when it comes to decide upon what to choose and what not, we have to give up
on something to get the other thing. Example you have Rs.200, you can either go for a
movie or buy a novel. If I got a book for myself, the opportunity cost of that book is
movie, which has forgone.

Q9. What is meant by the term 'management by objectives' (MBO)?

Ans. MBO is about the achievement of the corporate goals. Each department or
section is set objectives and this allows all to be focused on achieving the main
corporate goals. When thinking about 'management by objectives' think about how
targets can be used to monitor performance and objectives need to be reviewed and
updated regularly, else they will become out of date.

Q10. What is marketing mix?

Ans. Marketing mix is a combination of marketing tools that are used to satisfy
customers (needs, wants and desire from product) and company objectives (vision,
mission). Consumers often call the marketing mix "the offering." Your offer is
controlled by the following variables often referred to as the four Ps in marketing:
Product: what we are going to offer our customer
Place (distribution): how this product will reach our customers
Price: what are they going to pay (value)
Promotion (how will you promote your product)
Their should always be a right combination of these marketing mix, which is prepared
by keeping in mind various factors like customer demand, target market etc.

Q 11. What do you mean by Marketing

Ans. Marketing is a societal process though which every one can Fulfil their need,
wants and demands by creating, offering, exchanging the need, wants and demand in
the mind of the customer.
Note# marketing is a broad concept and sale is a part of it. Marketing starts form
realizing the need and want of the customer, then changing that need into physical
reality and finally completing the consumer consumption process.

Q12. What is brand positioning?

Ans. When a new brand appears in the market, the consumer gets acquainted with it
and starts collecting information about it. On the basis of this information the
consumer creates an opinion of the brand and establishes a brand image. A customer
always considers the image of a brand whenever they go for final purchase. Now it is
always in the hands of a company to position its brand right in the mind of customer
by maintaining the quality, promotion etc. Eg, whenever we buy toothpaste which
brand comes to my mind?
Q13. What do you mean by Marketing Management
Ans. Marketing management is a business discipline, which is focused on the
practical application of Marketing techniques and the management of a firm's
marketing resources and activities. marketing management encompasses all factors
that influence a company's ability to deliver value to customers, it must be "all-
pervasive, part of everyone's job description, from the receptionists to the Board of
Directors

Q14. What do you mean by offering?

Ans. What a company offers for sale to customers. An offering includes the product
and its design, features, quality, packaging, distribution, etc., together with associated
services such as financing, warranties and installation. The name and brand of the
product are also part of the offering.

Q15. What is marketing plan?

Ans. marketing plan is a detailed plan, in which what it has to be done, where it has to
be done, what are the procedures to be obtained for achieving these plan.

Q16. What is relationship selling?

Ans. An important part of selling where you want repeat sales is the relationship
between the sales person and the person doing the buying. If the person is going to
buy often, then the relationship may even develop into a genuine friendship.
This type of selling has to end up as a variable-pie win-win exchange. The seller
wants the buyer to feel that they have got a fair deal, and the buyer; although they
want a good price, do not want the seller to go out of business.

Q17. What is marketing myopia?

Ans. Lack of vision on the part of companies, particularly in failing to spot customers'
desires through excessive product focus. Marketing Myopia is the failure to define an
organization's purpose in terms of its function from the consumers' point of view. For
example, railway companies that define their markets in terms of trains, rather than
transportation, fail to recognize the challenge of competition from cars, airlines, and
buses. It is therefore necessary to define the needs of the consumer in more general
terms rather than product-specific terms.

Marketing Myopia is the short sighted look of the managers in wrongly identifying
the category and goals of the company, not looking at the whole industry of the
product neglecting the fields of opportunities in their area of industry, not listening to
the customer's real

Q18. Discuss the Holistic Marketing

Ans. the holistic marketing concept is based on development, design, and
implementation of marketing programs, processes, and activities that recognize thier
breadth and interdependencies. holistic marketing recognaize that "everything
matters" with marketing and that a broad, integrated perspective is often necessary.
four compnents of holistic marketing are: relationship marketing - integrated
marketing - internal marketing - and socially responsible markiting.
Holistic marketing is this concept; that value is not created in the corner office but by
those on the line delivering the product or service to the customer. The folks on the
line will only continue to add value if they are engaged in the process and empowered
to do so, if not then your out of luck.

Q19. What do you understand by competitive advantage?

Ans. The product, proposition or benefit that puts a company ahead of its competitors.
Specifically, it is your company's unique skills and resources working to implement
strategies that competitors cannot implement as effectively. Understanding your
competitive advantage is critical. It is the reason you are in business. It is what you do
best that draws customers to buy your product/service instead of your competitor's.
eg. Mac D

Q20. Write is market segmentation.

Ans. market segmentation is that in which we separate a huge market in small parts
...a market segment is, where company sales specialised gods according to the special
needs of a market. Market segmentation can b based on age group, culture, political
culture, education etc.

Q22. Define Niche marketing

Ans. niche marketing stands for targeting a very small customer's segment.
Companies like Mercedes do like this type of marketing. By adopting this type of
marketing we can make customized products. Companies adopting this marketing
always charge premium prices. Bullet also has this strategy. by adopting this we can
know our customer wants closely and we can make our product more customized. in
this our main target is to make our customer loyal. Less care is given on marketing
share.

Q23. Define viral marketing

Ans. Spreading a brand message using word of mouth (or electronically - 'word of
mouse') from a few points of dissemination. Typical techniques include using email
messages, jokes, web addresses, film clips and games that get forwarded on
electronically by recipients

Q24. What is marketing strategy?

Ans. The set of objectives which an organisation allocates to its marketing function in
order to support the overall corporate strategy, together with the broad methods
chosen to achieve these objectives.
Q25. What is tele marketing?
Ans. Telemarketing (known as telesales in the UK and Ireland) is a method of direct
marketing in which a salesperson solicits to prospective customers to buy products or
services, either over the phone or through a subsequent face to face or Web
conferencing appointment scheduled during the call.

Telemarketing can also include recorded sales pitches programmed to be played over
the phone via automatic dialing. Telemarketing has come under fire in recent years,
being viewed as an annoyance by many.

Q26. What is cold calling?

Ans. It is the process of approaching prospective customers or Clients, typically via
telephone, which was not expecting such an interaction.
Q27. What is demand forecasting?
Ans. "how much demand increase in future” predicts in present, is known by demand
forecasting. In other way, predict the external environment after that analysis what
will happen in future, on this base analysis demand forecasting. What will be demand
of company's own product in future, predict this known as demand forecasting.

Q28. What is market?

Ans. Market is a area where buyer and seller meet together and satisfied their needs
and want. As buyer need is product or service where seller needs is profit.

Q29. What do you see as the key issues in negotiating?

Ans. 1.price comparison
2.discounts or offers
3.credit terms
4.companies brand i.e. good will of the company
5.updated techniques (any product)

Q30. Why sales?

Ans. Selling is a skill, which can be improved, we all are salesmen out here, and every
now or then we are selling, whether it’s an idea, concept, service or product. Everyone
acquires the art of selling to an extent, then how to raise oneself from the crowd? By
working on it. Hence I want to be in sales to sharpen my skills, enhancing my ability
to convince people, to increase my knowledge on consumer Behaviour and human
psychology.

Q31. What is a channel sale?

Ans. channel sales is maintain different modes of sales like agencies, Distributors,
Dealers, Business Associates

Q32. How can you sell a computer to an illiterate person? How will you convince
him?
Ans. if he/she is illiterate ask him/her to close eyes and think of life he is leading,
remember and visualize him the problems he faced because of unawareness towards
latest technologies and now ask would u want your child should even face the same
problems if not married or not having child ask him till date he was illiterate but now
he knows the value of education as u visualized it to him, and ask still u want to be in
dark then directly discuss about lower rates, easily availability through

Q33. What is the different between sales and marketing?

Ans. Sales is a one-time process (means just selling the product to the customer) but
marketing is ongoing process (Identifying the customer needs, developing the desired
product, sales and then after sales services or customer delight).

Q34. What is Push and Pull Strategy?

Ans. Push makes use of a company's sales force and trade promotion activities to
create consumer demand for a product. Where Pull strategy is to sell directly to the
consumer. In Push strategy the products has to be promoted by Producer to
wholesalers to Retailers to Consumer. In Pull Strategy we have to use the told like
Consumer Promotions, advertising etc.
Q35. What is distribution and retailing?
Ans. Distribution is a system in which the goods or products are carried from the
company to the final customer with the help of supply chain intermediaries or
marketing channel. Whereas in retailing there is end of the distribution system where
in the goods or products are made available to the final customer.

Q36. According to BCG Matrix, cash cow means?

Ans. Cash cow has a low rate of growth. It is an established, mature product. Firms
need Cash Cows to generate money to pay for R&D, new launches, capital
investments etc.

Q37. What is product life cycle?

Ans. The life cycle is a generalised forecast of what will happen. It shows how a
products sales or profits, depending on the units used, may rise and fall over its life.

Q38. What we do in primary research in marketing?

Ans. Obtain first hand data specifically targeted at a particular marketing problem.

Q39. What do you mean by the term psychological pricing?

Ans. Setting prices that reinforce the concept of value e.g. £99 and not £100.

Q40. What market share tells you?

Ans. Market share is equal to sales of product / brand / company as percentage of total
sales value of the market. It does not tell you about the size of a market.

Q41. In the marketing mix what is meant by the term 'place'?

Ans. This normally means fitting into a system of distribution. In many businesses
this is now becoming shortened as parts of the distribution system are removed or
bypassed. It’s process of getting products to the places where customers can buy
them.

Q42. What is STAR in BCG Matrix?

Ans. The Boston Matrix is a presentation, which divides products into types based on
their market share and rates of growth, both of which can be high or low. Types are
Stars, Dogs, Cash Cows and '?'. Star is a product that has launched successfully and
looks to be doing well. It is still consuming cash, but has clear potential. It is a Star,
with great FUTURE potential. In simple terms it is a product with a high market share
and a high rate of growth.

Q43. What do you mean by blue chip companies? List some blue chip companies in
India
Ans. A blue chip stock is the stock of a well-established company having stable
earnings and no extensive liabilities.The term derives from casinos, where blue chips
stand for counters of the highest value.Most blue chip stocks pay regular dividends,
even when business is faring worse than usual

Q44. How many type of advertisements are there?

Ans.
Print Advertising – Newspapers, Magazines, Brochures, Fliers
Outdoor Advertising – Billboards, Kiosks, Tradeshows and Events
Broadcast advertising – Television, Radio and the Internet
Covert Advertising – Advertising in Movies
Surrogate Advertising – Advertising Indirectly
Public Service Advertising – Advertising for Social Causes
Celebrity Advertising

Q45. What is prospecting and evaluating?

Ans. Seek names of prospects through sales records, referrals etc., also responses to
advertisements. Need to evaluate if the person is able (Undergraduate degree to attend
a graduate program), willing and authorized to buy. Blind prospecting-rely on phone
directory etc.

Q46. What is networking in marketing?

Ans. Networking means making the relation with customer and to provide the good
offer to the existing customer so that good words of mouth comes out from the
existing customer, for that particular company or product that from one customer we
can generate atleast 20 customer and from that 20 customers we can generate 20 x
20=400 customer this is called networking marketing or networking in marketing.

Q47. What is business strategy?

Ans. its a planning of business activities like Presales, Sales, post sales, and how to
approach customer and how to sell a product these all things come in to business
strategy.

Q48. How can company establish its new brand?

Ans. advertisement, proper promotional activities and very good share of retailers can
established our new brand. Blue chips companies can take advantage of their
positioning in market. If the company is known then it is not so difficult. For instance
Reliance. They diversified their business in many streams -petroleum to reliance food
fresh & in footprints. Their company name with promotional activity is enough to
make it brand. But if company is new they have to take care in many ways- like
competitors and their competitive advantage. Company has to go for aggressive
marketing. Making full use of marketing mix, doing promotional activity and at same
time taking care of all the p's & a's (affordability, accessibility etc.) in marketing.
Provide quality& quantity to consumer, which is promised.

Q49. What do you mean by online marketing?

Ans. It is the concept of advertising and publicising the product through online.
Online marketing can be done through Internet, telephone, media etc. It is purely
promoting of product to the customers who can view or listen to that particular
product online and decide to purchase it or not.

Q50. What is the difference between advertisement and publicity?

Ans. Advertisement is always paid but publicity is unpaid

Q51. If there isn’t demand of product what you’ll do and what step you’ll going to
take?
Ans. If there is no demand of the product then first we have to find the cause of this
fall in demand and we have to rework out our strategy as well as the market segments
where to put our product, with creating awareness among the potential segments of
the market in terms of advertising and providing some offers with them ( as required)

Q52. What do you mean by AD copy?

Ans. Printed text or spoken words used in an advertisement.

Q53. What do you mean by USP?

Ans. It s stands for unique selling preposition which means the unique product benefit
that the competition cannot claim.

Q54. What is brand?

Ans. A name, term, design, symbol, or any other feature that identifies one seller's
good or service as distinct from those of other sellers. The legal term for brand is
trademark. A brand may identify one item, a family of items, or all items of that
seller.

Q55. What is B2B advertising?

Ans. Advertising directed to other businesses, rather than to consumers.

Q57. What is Cavitation?

Ans. Cavitation is a point where the expectation rises but the delivery is not up to the
set benchmark. Cavitation would in general sense means forming & collapse of
bubble when pressure is high or cavities/gaps are formed or A phenomenon in the
flow of water consisting in the formation and the collapse of cavities in water. In
marketing Sense it would mean promising on what you cannot deliver raising false
hopes and beliefs which on the due point would collapse against the pressure and
hence resulting damage or vacant space of trust and values.

Q58. What is creatives?

Ans. A general marketing term used for the material used to generate leads and sell
advertising developed and designed by art directors and/or copywriters in an ad
agency.

Q59. DAGMAR means?

Ans. Process of establishing goals for an ad campaign such that it is possible to
determine whether or not the goals have been met. It stands for Defining Advertising
Goals for Measured Advertising Results.

Q60. Whether advertising through T.V, Radio is direct marketing?

Ans. Direct marketing is when we sell the product thorough catalogue s, mails, Spam
e-mails, where the customer is reached out directly. The mail or the catalogue is sent
in the customers name, so he/she get the feeling of customized message, which is sent
to him/her exclusively. While TV and Radio are broadcast media, so they are mass
marketing mediums.

Q61. What is 80/20 rule?

Ans. A thumb rule i.e. for the typical product category, eighty percent of the products
sold will be consumed by twenty percent of the customers.
Q62. What is C&F agency?
Ans. c&f means carrying and forwarding agency... manufacturing or marketing
companies kept their goods at one place and distribute them when the dealers or
wholesalers or customers. For eg: HUL has c&f in Hyderabad HUL having dealers in
all places in Andhra Pradesh. When ever the dealers place the orders for goods the
ordered good will supply from the Hyderabad c&f

Q63. What is the difference between marketing and advertising?

Ans. Advertising: The paid, public, non-personal announcement of a persuasive
message by an identified sponsor; the non-personal presentation or promotion by a
firm of its products to its existing and potential customers.
Marketing: The systematic planning, implementation and control of a mix of business
activities intended to bring together buyers and sellers for the mutually advantageous
exchange or transfer of products.
The best way to distinguish between advertising and marketing is to think of
marketing as a pie, inside that pie you have slices of advertising, market research,
media planning, public relations, product pricing, distribution, customer support, sales
strategy, and community involvement. Advertising only equals one piece of the pie in
the strategy.

Q64. What is macro marketing?

Ans. Study of marketing activities, institutis, and processes from the
national(societal)perspective. It looks at the aggregate flow of goods and services in
an economy to determine if it benefits the society in terms of its resource consumption
and environmental effects.

Q65. What do you mean by FMCG, name any FMCG?

Ans. Fast moving consumer goods. An expression used to describe frequently
purchased consumer items, such as foods, cleaning products and toiletries. Eg, Dabur,
HUL

Q66. What is the percent of sales method?

Ans. Method of determining the advertising budget based on an analysis of past sales,
as well as a forecast for future sales.

Q67. When is the diversification growth strategy is suitable?

Ans. diversification means selling new products or services in new markets. It can be
done in four ways:
1. Horizontal diversification: this occurs when Co. acquires or develops new products
that may appeal to existing customer groups even though the new products may be
technologically unrelated to existing product lines.
2. Vertical diversification: The Co. moves into business of suppliers or that of its
customers. This is normally done to reduce threat from the suppliers and customers.
The customers mean the channel members.
3. Concentric diversification: results in new products/services that have technological
and/or marketing synergies with existing product lines.
4.Conglomerate diversification: occurs when there is neither technological nor
marketing synergy, with existing product lines and involves reaching new customer
groups. Large companies to balance cyclical portfolio with non-cyclical one do this.

Q68. What is Tag line?

Ans. A slogan or phrase that visually conveys the most important product attribute or
benefit that the advertiser wishes to convey. Generally, it’s a theme of a campaign.

Q69. What is word of mouth advertising?

Ans. Advertising that occurs when people share information about products or
promotions with friends.

Q70. Tell something about product life cycle

Ans. The product life cycle goes through many phases, involves many professional
disciplines, and requires many skills, tools and processes. Product life cycle (PLC)
has to do with the life of a product in the market with respect to business/commercial
costs and sales measures

The different stages in a product life cycle are:

1.Market introduction stage

I:* costs are high

II:* slow sales volumes to start

III:* little or no competition - competitive manufacturers watch for

acceptance/segment growth losses

IV:* demand has to be created

V:* customers have to be prompted to try the product

VI: makes no money at this stage

2.Growth stage

I:* costs reduced due to economies of scale

II:* sales volume increases significantly

III:* profitability begins to rise

IV:* public awareness increases

V:* competition begins to increase with a few new players in establishing market

VI:* increased competition leads to price decreases

3.Mature stage
I:* Costs are lowered as a result of production volumes increasing and experience
curve effects

II:* sales volume peaks and market saturation is reached

III:* increase in competitors entering the market

IV:* prices tend to drop due to the proliferation of competing products

V:* brand differentiation and feature diversification is emphasized to maintain or

increase market share

VI:* Industrial profits go down

4.Saturation and decline stage

I:* costs become counter-optimal

II:* sales volume decline or stabilize

III:* prices, profitability diminish

IV:* profit becomes more a challenge of production/distribution efficiency than

increased sales

Q71. What is green marketing?

Ans. green marketing is the marketing of products that are presumed to be
environmentally safe.

Q72. What is the moment of truth?

Ans. The time when a test determines or makes it apparent whether something will
succeed. The moment of truth comes when you try to start the engine you have just
rebuilt.

Q73. What is zone of tolerance?

Ans. The zone of tolerance is usually defined as the range of customer perceptions of
a service between desired and minimum acceptable standards (Zeithaml, Berry, and
Parasuraman, 1993). In essence it is the range of service performance that a customer
considers satisfactory. Performance below the zone is seen as dissatisfying and
performance above the zone is seen as delighting. The importance of this zone of
tolerance is that customers may accept variation within a range of performance, and
any increase or decrease in performance within this area will only have a marginal
effect on perceptions. Only when performance moves outside this range will it have
any real effect on perceived service quality. If a customer's zone of tolerance is
narrow, then he or she may be highly sensitive to the service experience, with a
greater likelihood of dissatisfying or delighting outcomes. Conversely, if a customer
has a wide zone of tolerance, then he or she may be much less sensitive to the service
experience, thus increasing the likelihood of a satisfactory or acceptable outcome. The
width of the zone of tolerance may vary from customer to customer and from situation
to situation.
Q74. What is retailing
Ans. Sale of goods or commodities in small quantities directly to consumers. Eg. We
began our retailing business by selling a locally made product to the community.

Q75. What is brand equity?

Ans. The sum of all distinguishing qualities of a brand, drawn from all relevant
stakeholders, that results in personal commitment to and demand for the brand; these
differentiating thoughts and feelings make the brand valued and valuable.

Q76. What are demographics?

Ans. It is a description of outward traits that characterize a group of people, such as
age, sex, nationality, marital status, education, occupation or income. Decisions on
market segmentation are often based on demographic data.

Q77. How you define a market leader in context of a company

Ans. Company that has achieved a dominant position - either in scale (e.g., British
Airways) or influence (e.g., Virgin) - within its field. This leading position often
comes about because the company was the first to market a certain type of product
and, with the protection of a patent, has managed to consolidate its position before
direct competition was possible. Alternatively, a company may overtake a previous
market leader through greater efficiency and skilful positioning.

Q78. What is a master brand?

Ans. Brand name that dominates all products or services in a range , across a business.
Sometimes used with sub-brands, sometimes used with alpha or numeric signifiers.
Audi, Durex, Nescafe and Lego, for example, are all used as master brands.

Q79. What do you mean by power branding?

Ans. A strategy in which every product in a company's range has its own brand name
which functions independently, unsupported by either the company's corporate brand
or its other product brands. Power branding is a resource-intensive strategy, since
each brand must be commercially promoted and legally protected. This strategy is
used mainly by manufacturers of consumer goods. Lever's and Procter & Gamble's
detergents are good examples of power brands.

Q80. What do you mean by marginal cost?

Ans. The marginal cost of an additional unit of output is the cost of the additional
inputs needed to produce that output. More formally, the marginal cost is the
derivative of total production costs with respect to the level of output.

Marginal cost and average cost can differ greatly. For example, suppose it costs
$1000 to produce 100 units and $1020 to produce 101 units. The average cost per
unit is $10, but the marginal cost of the 101st unit is $20

Q81. What is consumer marketing?

Ans. The consumer market is the sum-total of all the goods and services purchased in
a given period by all the inhabitants of given country or section for the satisfaction of
their consumption needs. The consumer market actually consists of four components:

1. People
2. Purchasing power
3. Need for a specific product
4. Willingness to fill the with a given product.

Q82. What is industrial marketing?

Ans. Industrial marketing is concerned with marketing of goods and services to
business or institutional organization for use in the further production of goods and
services. The industrial goods may be component parts of other goods, for example,
electric motors or ball bearings. Again, the industrial goods may be meant for
rendering facilitating functions, for example, a lathe or cleaning materials.

The selling of goods to final (end) household consumers is not industrial marketing.
At the same time, all selling of goods to business need not always be industrial
marketing. For example, when a shoe-manufacturer sells shoes to a whole seller or a
retailer for resale to consumers it is not industrial marketing. On the other hand,
selling a pair of safety shoes to a whole seller or a retailer for resale to consumers it is
not industrial marketing.

Q83. What is channel conflict?

Ans. Channel members may disagree on the best methods to attain goals. Inevitable
when individual short run goals are not compatible. Can occur between firms at the
same level, or between firms at different levels. Want to maximize profits and
autonomy.
Channel members belong to different channel systems, creating potential conflicts.
Producers may try to circumvent intermediaries

Q84. What is target market?

Ans. Target Marketing involves breaking a market into segments and then
concentrating your marketing efforts on one or a few key segments.
Target marketing can be the key to a small business’s success.
for instance, I open a catering business offering catering services in the client’s home,
instead of advertising with a newspaper insert that goes out to everyone, I could target
my market with a direct mail campaign that went only to particular residents.

Q85. What is utility?

Ans. The exchange process creates Utility.
Utility is the satisfaction, value, or usefulness a user receives from a good or a service.
When you purchase an automobile, you give up less (in $s) than the value of the car
(to you)...the ability to get you from A to B, safely, in a timely manner etc.

Q86. What is test marketing?

 1. Ans. Can observe actual consumer behavior.
Limited introduction in geographical areas chosen to represent intended
market.
Aim is to determine the reaction of probable buyers.
It is the sample launch of the Marketing Mix.
Determine to go ahead, modify product, modify marketing plan or drop the
product.

PROS are:

o Lessens the risk of product failure.

o Reduces the risk of loss of credibility or undercutting a profitable
product.
o Can determine the weaknesses in the MM and make adjustments.
o Can also vary parts of the MM during the test market.
o Need to select the appropriate MM and check the validity.

CONS are:

o Test market is expensive.

o Firm's competitors may interfere.
o Competitors may copy the product and rush it out. IE Clorox detergent
with bleach P&G. "In a live test you've tipped your hand, and believe
me, the competition is going to come after you. Unless you have
patented chemistry, they can rip you off and beat you to a national
launch" -Director of Marketing at Gillette's Personnel division.

Alternatively can use a simulated test market. Free samples offered in the mall, taken
home and interviewed over the telephone later

Q87. What is the difference between goods and service?

Ans. Intangibility-major component of a service is intangible

Pershibality-many cannot be stored for future sales Airline/Amusement ride
Number of hair cut hours in one week: i.e., if Christies employs 3 people, who
work forty hours per week, they have potentially 120 hair cut hours to offer. If
they do not have any customers at a particular period during the day, they will
lose the opportunity to cut hair at that time and therefore the opportunity to
generate revenue...the opportunity has perished...they no longer have the
ability to earn revenue from 120 hair cut hours that week!!
Inseparability-customer contact is often the integral part of the service...Legal
services/hair dresser, therefore often a direct channel of distribution.
Variability-in service quality, lack of standardization, because services are
labor intensive.

Q88. What is warranty?

Ans. A seller's assurance to a purchaser that the goods or services being purchased are
or shall be as represented and, if not, will be replaced or repaired.
Warranties for your goods and services can be either express or implied. Express
warranties are those made in writing or directly given by you to your customer or
client. Examples of express warranties are "Parts and labor warranted for 90 days on
moving parts."

Implied warranties aren't expressly stated but can be derived from advertisements and
literature. Examples are "You'll never have to paint again if you use this product" or
"Use this rust-free compound to save time and money."

Q89. What is labelling?

Ans. Facilitates ID of a product

Descriptive function
Indicate the grade of the product
Describe source of product, its content and major features
How to use the product etc.
Label can be a promotional tool
Needs to fulfil federal obligations.
Universal Product Code for Inventory and Information

Q90. What is hyper marketing?

Ans. hypermarket is a superstore which combines a supermarket and a department
store. The result is a very large retail facility which carries an enormous range of
products under one roof, including full lines of groceries and general merchandise. In
theory, hypermarkets allow customers to satisfy all their routine weekly shopping
needs in one trip. Eg. Big bazaar, reliance fresh etc

Q91. What is assortment?

Ans. Wide and shallow, deep and narrow?
Look at merchandising policies.

Q92. What is non-profit marketing?

Ans. Conducted by organizations and individuals that operate in the public interest or
that foster a cause and do not seek financial profits.

Involve organizations-Charitable groups, Unions, Universities etc.

Involve people-political candidates etc.
Involve places-resorts, convention centers
Involve ideas-stop smoking
as well as goods and services

Perform exchanges but not necessarily monetary (votes).

Price is not necessarily a reflection of the costs or values.

Q93. SWOT means?

Ans. A SWOT Analysis examines the companies:

Strengths...Internal
Weaknesses...Internal
Opportunites...External
 Threats...External

By developing a SWOT analysis, a company can determine what its distinctive

competancies are. This will help determine what the organization should be in
business for, what its mission should be.

Q94. What a mission statement of organization tells…

Ans. Reason to be? Invisible hand etc.
Product Terms...outdated
Technology Terms...outdated
Market Terms...keep in touch with consumer's needs
i.e. AT&T is in the communications business not the telephone business.
Visa...allows customers to exchange values...not credit cards
3M solves problems by putting innovation to work.
Should not be too narrow...or...too broad
Should be based on distinctive competencies of the corporation, determined from the
SWOT analysis

Q95. Explain the concept of inconsistency in service marketing

Ans. Lawn care service cannot mow a lawn precisely the same way each time, but
need to make the service as efficient and consistent as possible.

Remedy--use technology to help make the service provider more consistent...or

replace workers with technology

Q96. How can you develop a media plan?

1. Ans. Sets forth the exact media vehicles to be used and dates and times of ads.
Effectiveness of plan determines how many people in the advertiser's target
will be exposed to the message. Need to select the media to be used and dates
and times ads appear.

Primary goal--reach the highest # of people (within the advertiser's target) per
$ spent. Achieve the appropriate message reach and frequency for the target
audience while staying within the budget.

Various Media

o TV Channels/programs, Baseball = male 18-49 Academy awards =

female 18-49
o Sponsor cable channels, Reebok with Cable Health Club "Reebok
University"
o Radio, Becoming more segmented, also allowed to own 2 FM stations
in one area.
o Magazines, Lead time considerations, also pass along rate, subscription
plus news agent sales.
o Newspapers, Local vs. national
o Direct Mail, Evolution of Database marketing, able to narrowly target
with DM.
 o Outdoor, Billboards Atlanta is most billboard per capita city,
Transit...City Buses, Blimps...At Events
o Placed-Based, Schools, also sponsor educational programs,
Supermarkets, Health Clubs, Dining Halls. Intrusive..."Only go where
you are wanted!!". Target market is known...not assumed.
o Electronic, Compuserve et al.

Need to select general media, IE Newspapers, then subclass, IE Philadelphia

Inquirer.

Look at location and demographics of advertisers target, use media that

appeals to this group.
Content of message to present affects the choice of media.
Cost of media, use cost comparison indicator-within specific media (IE
between two magazines), CPM "cost per thousand" for magazines.
-cost, total cost; per reader/viewer cost
-reach, #viewers/readers in the audience, print media includes circulation and
pass on, more for magazines than newspapers
-waste, portion of marketer's audience that are not in the target market
-frequency, how often can the medium be used/changed, i.e., TV radio hourly,
newspapers daily, Yellow pages yearly.
-message performance, number of exposures each advertisement generates and
how long it remains available to the audience; outdoor ads, many
exposures/message, magazines retained for a long period of time.
-clutter, # of advertisements contained in a single program/issue of a medium.
TV ads moving to 15 secs. each is increasing clutter. Some moving to 2
minutes...or even 5, especially if there is a complex
message...telecommunications...cars maybe!!
Primetime:

o CBS 13mins 52 secs of non programming time

o ABC 13mins 24 secs
o Daytime 8-19 mins
o ESPN 13mins 28 secs
o Discovery 15mins 20 secs

Q97. What is corporate naming?

Ans. A firms name logo and trade characters.
Over 1000 ongoing firms change names each year, DuPont
If nature of business changes, may need to alter name--Southwest Airlines??
Allegheny Airlines change to US Air due to expansion in geographic markets. (United
Brands changed name to CHIQUITA brands)
Boston Chicken vs. Boston Market
Geographic names not as popular as they used to be compared to surnames,
descriptive names and coined names.
Kiwi airlines--named after a bird that cannot fly :)
Q98. Atmospherics means?
Ans. Describes the physical elements in a store's design that appeals to consumers and
encourages consumers to buy. Warm, fresh, functional exciting.

Exterior Atmospherics-store front, display windows, important to attract new

customers. Surrounding businesses, look of the mall etc.

Interior Atmospherics-lighting, color, dressing room facilities etc

Displays enhance and provide customers with information.

Need to determine the atmosphere that your target market seeks.

Q99. What is price discounting?

Ans. Trade, given by a producer to an intermediary for performing certain

functions (in terms of % off list prices)
Quantity, due to economies of purchasing large qttys. Pass cost savings on to
the buyer. There are five areas of cost savings, reduced per selling costs, fixed
costs decline or remain the same, lower costs from the suppliers of raw
materials, longer production runs means no increase in holding costs, shift
storage, financing, risk taking functions to the buyer. Can cumulative/non
cumulative.
Cash, for prompt payment, 2/10 net 30, means 2% discount allowed if
payment is made within 10 days, entire balance is due within 30 days, no
discount, after that interest will be charged.
Seasonal, purchase out of season
Allowances, trade in allowances, price reductions granted for turning in a used
item when purchasing a new one-to achieve desired goal. Popular in the
aircraft industry. Also promotional allowances, price reduction in return for
dealers promotional efforts.

Q100. What is break-even analysis?

Ans. Break even point is where the cost of producing the product is equal to
the revenue derived from selling the product.

Types of Cost:
Fixed.....do not change with change in # units produced
Variable..vary directly with the change in the # units produced

BEP = FC = FC
------------- -----------------------
per unit cont. to FC price - variable cost/unit
Need to determine the BE point for each of several prices. Focuses on what is needed
to break even

Sales funnel
Bucket theory