Model Answer Essentials of Marketing/ Fundamentals of Marketing/ Introduction to Marketing/ Basics of Marketing or any other title of a paper that tests the ABC of marketing This paper has 40 Multiple Choice Questions Ten Structured Short Answer Questions Three Essay Type Questions This is published in the internet for the benefit of all the students in the world who are taking marketing for the first time as a course of study. Comments can be forwarded to Maxwell on: [email protected]Good Luck
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Model Answer
Essentials of Marketing/ Fundamentals of Marketing/ Introduction to Marketing/ Basics of Marketing or any other title of a paper that tests the ABC of marketing
This paper has 40 Multiple Choice Questions Ten Structured Short Answer Questions Three Essay Type Questions This is published in the internet for the benefit of all the
students in the world who are taking marketing for the first time as a course of study.
1. A set of activities directed at an organization's resources with the aim of achieving organizational goals in an efficient and effective manner.
2. People who are getting work through other people, supervising, controlling and paying for their services.
3. The owners of businesses who invest capital and other infrastructure needed for to run a business
4. The educated people who runs businesses with all the controlling authority and power
2. Which one is wrong ?
1.Customer is the center of all Marketing activities.
2. Marketing focuses on the needs and wants of customers.
3. Marketing is all about selling goods and services
4. It is concerned about satisfying customers through supply of goods and services
3. definition
Phillip Kotler( The Millennium Edition –2000) “
Marketing is a societal by which individuals and groups obtain what they want through creating, offering and freely exchanging Products and services of value with others”
4. Modern day marketing could be considered as a mind game.
1.It makes people to buy goods that is not needed by them.
2. It tries to get a unique position in the customers mind for a product3. It tries to confuse the customer and drive the customer to buy products with higher prices
4. Because it study a lot about the consumers psychology
5. A customer may have two values for a product
1. Experiential Value ( product already used)Perceived value ( product not yet used)
2. Monetary value and emotional value 3. Rational value and irrational value 4. Economic value and usage value
6. Marketing is
1.Only a function of management 2. Function of management as well as a
business philosophy 3. It is only a business philosophy 4. Selling goods and services
7. Production Concept says:
1. Consumers will prefer products that are widely available and inexpensive
2. Consumers will prefer better products 3. Consumers will prefer lower prices 4. Having the goods produced in a large
scale factory with assembly lines.
8. Product Concept8. Product Concept
1. Make more and more products available for customers
2. let customers select products that they want and then produce them
3. Products will not purchased by the consumers if they are not advertised
4.Consumers will favor those products that offer most quality, performance or innovative features
9. Selling Concept9. Selling Concept
1. Selling is the most important part in marketing
2.If consumers are left alone, they will ordinarily not buy enough of the organisation’s products.
3. Sales people should be trained to sell the products well.
1. Supply the best products wanted by all the people in the society
2. Make sure that you meet the needs of the society as a whole whilst satisfying the needs and wants of the customers
3. Customers will think more about the society when they buy products
4. Marketers should pay taxes to look after the well being of the society
11. Green Marketing
1. Making environment friendly products 2. Making more products with natural
ingredients 3. Make use of more green colors in
packages 4. Educate marketers about the importance
of natural environment
12. A marketing manager for a small computer manufacturer is analysing the potential effects of political, legal, social, and economic forces on the firm's operations. The marketing manager is examining the __________that influence(s) the firm's strategy.
20. To ensure the effectiveness of segmentation, the segments should be measurable, substantial, accessible, actionable and:
A) Differentiable B) Stable C) Economic D) Reachable
21. The bases for market segmentation are
1. Geographic,Demographic, Psychographic and Behavioral
2. Targeting, Positioning and Differentiation 3. People, Process and Product 4. Customers, Suppliers and Competitors
22. Market specialisation is offering
1. A range of products to different markets 2. One product to all the markets 3. Several products to one market 4. Special prices to same market
23. Positioning is
1. Placing the products in premium places in the supermarkets
2. Making customers aware that a product has been introduced to the market
3. Placing the product in the minds of the customer to get a unique mental picture
4. Advertising the product by demonstrating how it works
24. The traditional Marketing mix is
1. People, Physical evidence, Price and Product
2. Product, Price , Place and Promotion
3. Product, Planning, Performing and Preference
4. Pricing, Planning, Prioritizing, Positioning
25. Promotional Mix comprises of
1. Advertising, Planning, Packaging and Sales Promotion
2. Personal selling, Direct marketing, Discounting and Advertising
3. Branding, Styling, Public Relations, and Advertising
4. Advertising, Personal Selling, Sales Promotion, Public relations and Direct marketing
26. Services differ from physical goods mainly as they are
1. Usually expensive than the physical goods 2. They are intangible, variable, inseparable
and perishable 3. They are intangible and not available like
the physical products 4. They are always offered at different prices
27.Promotion in emarketing Mix would be
1. web banners, web page sponsorships, online offers and web news letters
2. advertising, promotion and direct marketing
3. Fax, emails, SMS and MMS 4. Web site, Internet, Yahoo and Google
28. Product levels are
1. Tangible and Intangible 2. Formal, informal, packaged and
augmented 3. High and Low 4. Core, generic( basic), expected,
augmented and potential
29.Augmented Product is
1. additional benefits that is offered beyond the expected product
2. Increased quality and well packed product 3. Super quality product couples with a
discount 4. Core product plus branding, styling and
guarantee
30. Product features and benefits
1.Features are the additional gadgets that you have in a product and benefits are the convinces of using the product
2. Features are the physical attributes of a product and benefits are utility value that you get from them
Features are the things that comes with a product and benefits are the things that you buy separately
Features and benefits are available only in tangible products
31. Tangibility Continuum of a product
1. Talks about the tangibility and intangibility in a product
2. Describes about the differences in physical products
3. Describes about the differences in Services
4. Describes products that are highly in demand during the introductory stage.
32.Consumer goods can be classified
1. As convenience, shopping, packaged, staple and unsorted goods
2. As convenience, shopping, specialty and unsorted goods
3. As convenience, emergency, low priced, high priced and unsorted goods
4. imported, locally manufactured, natural and artificial goods
33. branding
1. Is the name and design of the product 2. Name. term, symbol or combination of any
of those to differentiate 3. Name used by multinationals to name their
products 4. legally protected name used by
businesses to promote their product
34. Brand development process in sequence is
1. brand recognition, acceptance, preference and loyalty
2. brand acceptance, recognition, loyalty and preference
3. preference, recognition, loyalty and acceptance
4. loyalty, preference, recognition and acceptance
35.Skimming pricing
1. Is to charge the highest price possible 2. Is to price the product to suit rich people
only 3. Is to charge the highest price that the
customers in the target market are willing to pay
4. Is a pricing system used by marketers to enter into a very competitive market
36. AIDA model refers to
1. Action, Interest, Decision and anticipation 2. Attention( awareness), Interest, Desire and
Action 3. Attitude, Integrity, Determination and
Attraction 4. Actual, Intangible, Discrepancy and
Allocation
37. Advertising is defined as
1. Use of temporary tools available to persuade the purchaser
2. A free form of personal presentation of idea, goods, services by an identified sponsor
3. Activities done towards contacting customers directly
4. Any paid form of non personal presentation ideas, goods, services by an identified sponsor
38. Pull strategy in promotions is
1. Giving lot of incentives to distributors 2. Activities directed at promoting the product
to consumers 3. Pulling customers from competitors 4. Pulling products from suppliers
E-commerce refers to
1. Business done through faxes and SMS 2. Business done through third parties 3. Business done through the use of Internet 4. Business done through email
40. Stages of Product life Cycle are
1. Introductory, growth, slowing down of growth and decline
2. Introductory, growth, maturity and decline 3. Introductory, growth, decline and maturity Introductory and decline, growth and decline
Part 2 Structured Short Answer Questions 10 questions x 4 marks Answer all
1. Name the stages of evolution of marketing Concept
2. Explain the difference between the marketing research and market research
Market Research Means research that is conducted concerning a market or a market segment built up of customers and consumers
Marketing Research is a broader term and it does not confine to a market. It could include the Market Research as well as anything in the total marketing process. It could be the brand, packaging, colours, pricing, placement and distribution, communications and promotions, processes, after sales services etc.
Simple Model of Consumer Buying Behavior Problem Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Post Purchase Evaluation
Internal Search
External Search
Abandon /Postpone
Tangibility Continuum
Pure tangible
Tangible goods with service
Hybrid- Equal
Major service with goods
Pure intangible
Pencil
Car restaurant Air line
Lecture
5. Name three pricing strategies and explain one of them with Sri Lankan examples.
Cost Based (Internal Oriented) Pricing Demand (Market/ Customer) Based Pricing Competitor Based Pricing
Customer Oriented Pricing
Market Skimming ( innovative, inelastic demand, high value, high demand low supply – e.g.. celltel)
Market Penetrating( “mee too” products, quick entry into market, greater volume to achieve to get economies of scale, greater market to catch e.g Airtel/ new brand of soap like
Delma/ velvet, new brand of tooth paste like Sudantha) Psychological ( emotional factor, image, quality e.g.. Bata
99.90 rather than Rs. 100 , Rolex watches or Benz Cars ,
Dinner at Hilton Hotel- very high price and image)
6. Name the total Marketing Mix( 7 Ps) and explain Product and Price with examples relating to a service company available in Sri Lanka
Product & Price of a service company – Sri Lanka Insurance Corporation Ltd.– Offers many Insurance Policies to cover risk of many areas. – It has policies such as Life, Burglary, fire and accident etc.– Price is the premium paid by the insuree who obtain such policies.
- For a life policy a monthly, quarterly or annual premuim has to be paid by the insuree depending on the value and different covers obtained by the him or her
In the same manner a person who obtains a car insurance policy also will have to pay a premuim depending on the value of the car insured and the covers obtained by him or her
7. Describe positioning in maximum of three sentences and explain what is the positioning strategy of AIRTEL
“ Disembodied mental image , specifically, a location in consumers mind”
“Positioning is doing something to the collective mind of the consumer”
Positioning Strategy of Airtel: A superior service proposition and quality. An affordable pricing model. Convenient availability and accessibility. Commanding technology appeal. A brand image of global appeal.
7. Explain the pros and cons of using celebrities in advertising
– Pros- - Popularity of the celebrity can be attached to the new product
- Celebrity’s endorsement of the product could build trust
-Celebrity can be associated with the product
- Cons- If Celebrity does not live up to his celebrity status, the product will not get
the desired results- If Celebrity cannot be associated with the product, the value of using
celebrity will have not effect- Celebrity may be expansive
8. Name the marketing planning process and explain the marketing control process of a company who is in the business of selling soap who has planned a 24% growth in sales within a period of 12 months
Assume if the 1st quarter has achieved a sales growth of 10% then there is no deviation and it could continue the same promo acitivity. If it has a sales growth of less than 10% then there is a deviation and reasons should be found for that and remedial action should be taken,
9. What are the different levels of product concept and explain the augment level in detail by taking a computer as an example.
Augmented product level of a computer– On site repair service, computer to computer back
up service, extend warranties- online advice- updating virus guards – free updates on software- trade in deals for new models
10. Assume you are selling tooth paste. Name the best distribution channel that you would select and explain them very briefly.
Distribution system - Manufacturer- dealer- wholesaler- retailer
All the players in the toothpaste market is using this distribution system because it is the most suitable to distribute a product in the mass scale around the country.
This system will ensure distributing the product without a shortage It is classified under convenient goods .Tooth paste is a FMCG product Marketer needs to make it available where ever possible for the customer to buy
without any effort Needs to make it available in all corners of the country – may be around 150,000 or
so retail outlets. Therefore the best way is to use the above system Manufacturer, cannot go to each and every retailer. Therefore the services of dealer,
wholesaler are required Credit risk can be passed on to intermediaries Intermediaries could be used to promote the product
Part 3 Answer only for two questions 10 marks each
1. Draw a chart showing the Promotional campaign plan and describe in detail how you would use Television to create awareness of a Brand of biscuits ( You should explain what kind of theme that you are going to use and how many times you are going to advertise in the prime time in what channel. You have a daily budget of Rs. 300,000 to advertise in the television and assume that prime time advertising rate is Rs. 75000 inclusive of taxes per 30 second add) You have to plan your TV advertising only for the first 30 days of the launch.
Leave space to write 12 sentences
Communication campaign PlanningIdentify the target audience
Develop Communication Objectives
Develop Communications strategy
Design the Message
Communication campaign Planning
Select the Promo MixAdvertising
Sales promotions
Direct marketing
Personal Selling
Public relations
Promo Activity Scheduling
Setting promo Budget
Measure Promo results
Prime Time Ad budget 7.30 pm to 9.00 pm. Tele drama time
Period
Rupavahini
Swarnavahini
ITN Sirasa
Derana
Art Total
1-5 days 75000 x5 75000x 5 75000x 5 75000x5 1,500,00
6-10 days 75000x5 75000 x5 75000 x5 75000 x5 1,500,00
Total 2,250,000 1,275,000 2,100,000 1,500,000 1,125,000 750,000 9,000,000
2. Explain the product Life Cycle theory with an aid of a diagram and indicate how it differ from a fashion item that would catch up the market very fast and decline also in the same manner . Leave space to write 12 sentences
Product Life Cycle Theory ( PLC)
It is assumed that a product will have a life cycle from development to decline.
It is measured in relation to time and sales. However every product may not go through the
same life cycle or some products will stay for along without getting on to the declining stage.
Limitation of the PLC Many products may not have a life cycle as depicted by PLC
Stages of PLC are difficult to distinguish Identifying where one stage ends and the other
begins is very difficult Traditional shape may not occur. Eg. Fad items Ignores the application of marketing mix activities Strategic decisions can change the PLC eg.
repositioning
Product Life Cycle of a fashion ItemIntroductory will have short period
Very high rate of growth stage
There will not be a maturity stage
Decline stage also will have a higher rate
Marketing is a function of a business as well as a business philosophy- discuss
It is a function of management as well as a business philosophy It is considered as a function of management as it uses management
techniques in satisfying customers. Businesses has various divisions that handles different functions such
as human resource, financial, operations and marketing. Marketing functions in general is to identify, create, retain and grow
customers. In a typical Marketing Department there are marketing managers,
As a function, marketing is involved in several activities Identifying customer requirements through research Study about customer perception and products, set
prices, involved in distribution systems, promo activities, etc.
Anticipate customer demand by forecasting Work with other functional departments to develop
products and services to satisfy customer needs Simply analyzing, planning, implementation and control of
all the marketing activities
Marketing as a business philosophy
Marketing is considered as a overall business philosophy which runs through all departments of an organisation and embedded in all the activities of a marketing organization. It is a way of business thinking.
The idea rooted in satisfying customers through the supply of goods and services does not restrict to one department or function.
It is the purpose of the whole business. Everyone should have the customer oriented attitude in an organisation.
Marketing is running like a silver lining in all aspects of the business.
Therefore it is considered as an attitude of mind rather than a specific function or discipline.
A marketing integrated approach is required in all departments and functions of a company
Peter Drucker- “Business success is not determined by the producer but by the customer”
Explain three branding strategies that a an existing fast moving consumer goods marketing company can use to market a new kind of toilet soap.
Different strategies have been used by companies in branding their products.
Separate / individual Brand Names: No company name is used: individual brand names are given: Lux, Signal, Surf excel, Astra, Fair and lovely, Hico,Marmite, Rexona, Dove, Lipton of Uni Lever
Tide, pampers, Pantene of Proctor and Gamble Blanket Family Name: Company name is
always used with the brand; International : Singer, LG, Hewlet Packard, General
Electric .Sri Lanka: Munchee, Maliban, Siddhlepa, Damro,
Arpico
They believe that the success of the exisiting brand will be a competitive advantage for new products and use the same brand
Corporate Name with Individual brand names Link- Samahan, Link – Paspanguwa, Link Kesha,
Link Hair Oil Toyota- Hiace, Toyota Townace, Toyota Corolla,
Toyota Corona
Branding Strategy for a new soap If the company uses family branding strategy it
could get the reputation of the existing brand name.
It would be easy to introduce the product However, if the new brand fails it will reflect
bad on the existing products too It has to offer something to the standard of the
existing brands
Separate /Individual brand name– Company can develop its separate positioning for
the brand apart from the existing brands– Will not have much effect on existing products
even if the new brand fails – However, the reputation of the exisitng products
cannot be attached – More effort has to be taken to introduce the new
