PRINCIPLES OF MARKETING

F-2,Block, Amity Campus

Sec-125, Nodia (UP)
India 201303
ASSIGNMENTS

PROGRAM:
SEMESTER-I
Subject Name
: Principles of Marketing
Study COUNTRY
: SOMALIA
Permanent Enrollment Number (PEN) : BFIA01512010-2013019
Roll Number
:
Student Name
: Mohamed Abdullahi Khalaf
INSTRUCTIONS
a)

Students are required to submit all three assignment sets.

ASSIGNMENT
Assignment A
Assignment B
Assignment C

DETAILS
Five Subjective Questions
Three Subjective Questions + Case Study
45 Objective Questions

MARKS
10
10
10

b)
Total weightage given to these assignments is 30%. OR 30 Marks
All assignments are to be completed as typed in word/PDF.
c)
d)
All questions are required to be attempted.
e)
All the three assignments are to be completed by due dates (specified
from time to time) and need to be submitted for evaluation by Amity
University.
f)
The evaluated assignment marks will be made available within six
weeks. Thereafter, these will be destroyed at the end of each semester.
g)
The students have to attached a scan signature in the
form.
Date : 13/01/2011

Signature

( ) Tick mark in front of the assignments submitted

Assignment A

Assignment B

Assignment C

PRINCIPLES OF MARKETING

Assignment A
Q1 For what reasons might a fast food restaurant company choose to adopt the
societal marketing concept? By adopting the concept, is it really changing the
way it does business?
Answer:
The societal marketing concept is an organizations task which tries to identify the
needs and interests of the consumers and delivers quality services or products as
compared to its competitors in a way that consumer's and society's well being is
maintained. In other words organizations have to balance consumer satisfaction,
company profits and long term welfare of society.
This is a new marketing philosophy that tries to reduce the inequalities at various
levels. It emphasizes that organizations should not only think of cut-throat policies to
achieve targets and jump ahead of competitors but should have ethical and
environmental policies and then back them up with action and regulation.
Societal marketing can be achieved by following a few principles. It should always be
remembered that consumer's needs are of paramount interest. Improvements in
products which are both real and innovative should be carried out to give long term
value to the product; do what is good for the society with a sense of mission and trust.
In this way the focus shifts from transaction to relationships. If a client 'repeats
business' a bond is created between him and the product and is worth its while for the
organization to nurture this bond, and that is the reason a fast food restaurant
company may choose to adopt this concept of marketing. They are trying to
differentiate their product from the products of competitors by showing the
consumer and society that they are the societys long-term care takers. It connects the
company to the society, to a degree that they see it as a part of their lives, and makes
the companys picture brighter and better than its competitors.
The concept has an emphasis on social responsibility and suggests that for a company
to only focus on exchange relationship with customers might not be suitable in order
to sustain long term success. Rather, marketing strategy should deliver value to
customers in a way that maintains or improves both the consumer's and the society's
well-being.
Most companies recognize that socially responsible activities improve their image
among customers, stockholders, the financial community, and other relevant publics.

PRINCIPLES OF MARKETING

Ethical and socially responsible practices are simply good business, resulting not only
in favorable image, but ultimately in increased sales.
Q2 To what extent is it true to say that advertising builds brands, while sales
promotion undermines them? Is there any overlap or convergence of the two
functions
Answer:
Successful companies use targeted marketing strategies to compel consumers to
purchasing goods and services. Marketing campaigns may include advertising or sales
promotions, two popular marketing techniques of businesses.
Advertising Definition: is any method used to attract consumer attention to products
and services. Radio commercials, television ads and Internet websites are popular
forms of advertising.
It is used to introduce new products into the marketplace and show consumers the
benefits of these new products. Advertising can also infuse life into existing products
by reminding consumers of the need to replace an item that is old or worn out.
Sales Promotion: are ways to promote sales by offering extra incentives for
consumers. Standard sales promotion gimmicks include "buy one, get one free," free
gifts with purchases, special coupons and 0 percent financing.
Sales promotions are best used with special events or big-ticket consumer items.
Goods with an established market and consumer demand benefit from sales
promotions because they give consumers motivation to purchase items now rather
than later.
Advertising builds brands by giving personality and a name to the product, it gives it
global recognition and in doing so it promotes itself, these attributes overlap with the
qualities and functions of sales promotion such as the encouragement of purchase of
the product thus in doing so it undermines thing that sales promotion seeks to do.
Creating a good mix of advertising and sales promotions can generate a lot of interest
for a company and lead to increased sales. Companies must determine which
marketing method best promotes their product and create a marketing strategy that is
inexpensive and effective.

PRINCIPLES OF MARKETING

Q3 Write short notes on: a) Promotion Mix. b) Consumer Behavior Process.

c) Pricing Strategies
Answer:
a) Promotion Mix: A promotion mix (sometimes called a marketing
communications mix) is the particular combination of promotional methods a
firm uses to reach a target market.
It is not enough for a business to have good products or services sold at attractive
prices. To generate sales and profits, the
benefits of products and services have to be
communicated to customers. In marketing,
this is as promotion.
A
business'
total
marketing
communications programme is called the
promotion mix. It consists of advertising,
personal selling, sales promotion and public
relations. These are the four key elements in
the promotion mix.
1. Advertising: is any paid form of
non-personal communication of
ideas or products or services in the
media: televisions, newspapers,
magazines, radios, cinemas and etc.
Advertising is intended to persuade
consumers and to inform them. The two basic aspects of advertising are the
message (what you want your communication to say) and the medium (how
you get your message across).
2. Personal Selling: Oral communication with potential buyers of a product with
the intention of making a sale. The personal selling may focus initially on
developing a relationship with the potential buyer, but will always ultimately
end with an attempt to "close the sale".
3. Sales Promotion: Providing incentives to customers or to the distribution
channel to stimulate demand for a product.
4. Public Relations: The communication of a product, brand or business by
placing information about it in the media without paying for the time or media
space directly.

PRINCIPLES OF MARKETING

b) Consumer Behavior Process: is the study of when, why, how, and where
people do or do not buy a product. It blends elements from psychology,
sociology, social anthropology and economics. It attempts to understand the
buyer decision making process, both individually and in groups. It studies
characteristics of individual consumers such as demographics and behavioural
variables in an attempt to understand people's wants. It also tries to assess
influences on the consumer from groups such as family, friends, reference
groups, and society in general.
Customer behaviour study is based on consumer buying behaviour, with the customer
playing the three distinct roles of user, payer and buyer. Relationship marketing is an
influential asset for customer behaviour analysis as it has a keen interest in the rediscovery of the true meaning of marketing through the re-affirmation of the
importance of the customer or buyer. A greater importance is also placed on
consumer retention, customer relationship management, personalization,
customization and one-to-one marketing. Social functions can be categorized into
social choice and welfare functions.
c) Pricing Strategies: Price planning that takes into view factors such as a firm's
overall marketing objectives, consumer demand, product attributes,
competitors' pricing, and market and economic trends.
There are several different pricing strategies available to a business:
Strategy

Description
Setting a price by adding a fixed amount or percentage to the
Cost-plus pricing
cost of making the product
Penetration
Setting a very low price to gain as many sales as possible
pricing
Setting a high price before other competitors come into the
Price skimming
market
Predatory pricing Setting a very low price to knock out all the other competition
Competitor
Setting a price based on competitors prices
pricing
Price
Setting different prices for the same good, but to different
discrimination markets e.g. peak and off peak mobile phone calls
Psychological
pricing

Setting a price just below a large number to make it seem

smaller e.g. $9.99 not $10

A new business that is entering the market might try the following strategies:

PRINCIPLES OF MARKETING

If they are first into the market then they might use price SKIMMING.
If they are trying to establish themselves in the market then PENETRATION
pricing.
Sometimes a business may use a loss leader. This is a product where the price is so
low that the retailer may not make any profit or even a loss on the sale, but does
attract shoppers to buy other full price products. Orange juice has been used by
businesses such as Rank Hovis McDougall to entice supermarkets to stock more of
their other products.
Price skimming has been used for the launch of high technology products, such as
DVD players and Personal Digital Assistants (PDAs) - which were far more
expensive than they are now when they first arrived in the market.
Q4 "Elasticity of demand is a fine theoretical concept of economists, but
difficult for marketers to use in practice". Critically assess this statement
Answer:
The concept of elasticity of demand is very important in economic theory and policy.
It is used to measure the effect of changes in price on quantity demanded. It is known
that according to the law of demand, if price decreases the demand increases and if
price increases the demand falls. The quality of demand to change with changes in
price is called the elasticity of demand.
By definition, then, the elasticity of demand is the rate at which the quantity
demanded changes in response to a change in price. Its formula is:
Ed = percentage change in quantity demanded/percentage change in price.
This rate of change in demand varies according to commodities, market and
consumers. At times a small change in prices has a big effect of demand. This
phenomenon is called elastic demand. This effect is usually seen when consumers
have more buying options. There are also situations when a large change in price has a
small effect of demand. This is called inelastic demand. Commodities like basic food
items like salt tend to show inelastic demand.
A perfect elastic demand exists when demand increase with no change in price. This is
called infinite elasticity. A situation of zero elasticity result when lowering the price
does not increase the demand.

PRINCIPLES OF MARKETING

This concept of elasticity of demand is very important as you see in economical point
of view; because it represents the nature of the goods that economists are dealing
with.
It is Important For Government, it helps the finance minister of the monopolist in
imposing a tax. When a tax is imposed the price tends to rise. But if the demand is
very elastic it will considerably fall when the price has risen and thus the government
will not be able to earn expected revenue. Thus this concept of elasticity of demand
helps the government to impose the tax on a commodity whose demand lass elastic
and hence earn valuable revenue.
The businessmen also take cue from the nature of demand while fixing his price. IF
the demand is inelastic he knows that the people must buy such commodities. Thus
he will be able to change a higher price and big profits.
The concept of elasticity of demand is of special importance to the monopolist. He is
in a position to control the price and fix high price when demand is inelastic and low
price when it is elastic will bring him the maximum profit.
In case of joint products separate costs are not ascertainable. Hence the producer will
mostly be guided by the nature of demand while fixing the price.
The concept of elasticity of demand influences the determination of wages of a
particular type of labour. If the demand of particular type of labour is inelastic trade
union can easily get their wages raised. On the other hand of the demand for labour is
relatively elastic trade union trade unions may not be successful in raising wages.
The concept of elasticity of demand is used in calculating the terms of trade.
Whenever a country fees an adverse balance of payment the government considers
the elasticity of demand for the countrys export and imports before devaluing its
currency.
Elasticity of demand is an important concept in the determination of price policies.
However, the measurement of elasticity is difficult for marketers in actual practice.
The difficulty arises from the fact that elasticity is a concept relating to a given point
of time, and price elasticity describes the effect of price on quantity, assuming all
other determinants to be constant. Two statistical approaches attempt to estimate the
nature of the demand curve: (i) study of past time series of prices and quantities; and
(ii) controlled experiments. However, even if a manager does not want to go to the
trouble of using these methods, the concept is valuable as an aid to his judgment.

PRINCIPLES OF MARKETING

Q5 What is product Mix of a company. How company uses it to compete in

the market.
Answer:
Product mix is a combination of products manufactured or traded by the same
business house to reinforce their presence in the market, increase market share and
increase the turnover for more profitability. Normally the product mix is within the
synergy of other products for a medium size organization. However large groups of
Industries may have diversified products within core competency. Larsen & Toubro
Ltd, Godrej, Reliance in India are some of the examples.
One of the realities of business is that most firms deal with multi-products .This helps
a firm diffuse its risk across different product groups/Also it enables the firm to
appeal to a much larger group of customers or to different needs of the same
customer group .So when Videocon chose to diversify into other consumer durables
like music systems, washing machines and refrigerators, it sought to satisfy the needs
of the middle and upper middle income group of consumers.

PRINCIPLES OF MARKETING

Assignment B
Q1 critically, assess methods used by banks to develop ongoing relationships
with their personal customers.
Answer:
Competition in the financial services industry has intensified in recent years, owing to
events such as technology changes and financial industry deregulation. Conventional
banking distribution has been gradually supplemented by the emerging use of
electronic banking. Many bank customers prefer using ATMs or a website rather than
visiting a branch, while technology has also reduced barriers to entry for new
customers.
Today, customers have more power in deciding their bank of choice. Consequently,
keeping existing customers, as well as attracting new ones, is a critical concern for
banks. Customer satisfaction is an important variable in evaluation and control in a
bank marketing management. Poor customer satisfaction will lead to a decline in
customer loyalty, and given the extended offerings from the competitors, customers
can easily switch banks. Banks need to leverage effectively on their customer
relationships and make better use of customer information across the institution.
CRM--a powerful tool
CRM is a powerful management tool that can be used to exploit sales potential and
maximize the value of the customer to the bank. Generally, CRM integrates various
components of a business such as sales, marketing, IT and accounting. This strategy
may not increase a business's profit today or tomorrow, but it will add customer
loyalty to the business.
In the long term, CRM produces continuous scrutiny of the bank's business
relationship with the customer, thereby increasing the value of the customer's
business. Although CRM is known to be a relatively new method in managing
customer loyalty, it has been used previously by retail businesses for many years.
The core objective of modern CRM methodology is to help businesses to use
technology and human resources to gain a better view of customer behaviour. With
this, a business can hope to achieve better customer service, make call centres more
efficient, cross-sell products more effectively, simplify marketing and sales processes,
identify new customers and increase customer revenues.

10

PRINCIPLES OF MARKETING

As an example, banks may keep track of a customer's life stages in order to market
appropriate banking products, such as mortgages or credit cards to their customers at
the appropriate time.
The next stage is to look into the different methods customers' information are
gathered, where and how this data is stored and how it is currently being used. For
instance, banks may interact with customers in a countless ways via mails, emails, call
centres, marketing and advertising. The collected data may flow between operational
systems (such as sales and stock systems) and analytical systems that can help sort
through these records to identify patterns. Business analysts can then browse through
the data to obtain an in-depth view of each customer and identify areas where better
services are required.
CRM and banks
One of the banks' greatest assets is their knowledge of their customers. Banks can use
this asset and turn it into key competitive advantage by retaining those customers who
represent the highest lifetime value and profitability. Banks can develop customer
relationships across a broad spectrum of touch points such as at bank branches,
kiosks, ATMs, internet, electronic banking and call centres.
CRM is not a new phenomenon in the industry. Over the years, banks have invested
heavily in CRM, especially in developing call centres, which, in the past, were designed
to improve the process of inbound calls. In future, call centres will evolve to
encompass more than just cost reduction and improved efficiency. According to
Gartner Group, more than 80 per cent of all US banks will develop their call centres
as alternative delivery channels and revenue centres, to be used for the delivery of
existing products and services.
But to be successful, a bank needs more than the ability to handle customer service
calls. It needs a comprehensive CRM strategy in which all departments within the
bank are integrated.
CRM in e-banking
With the advent of the internet, building good relationships with customers will
become more imperative than ever. Not only does the internet bring the opportunity
for high tech CRM solutions, but it also gives customers the ability to change banks
with a simple click of a mouse.
PwC Consulting recently surveyed banks globally on their CRM efforts, as well as
consumers on their buying preferences and practices. The research revealed that

11

PRINCIPLES OF MARKETING

nearly one-third of the consumers surveyed believe that the most important aspect
when dealing with a bank was having a variety of channels through which to deal with
the bank.
Each communication channel in a bank opens a door for an opportunity. Examples
include Wireless Application Protocol (WAP) mobile phone and wireless devices,
while interactive television is not far behind. The danger is that the banks rush to the
technology without studying how it will fit into their overall CRM picture.
Moreover, the internet has simplified bi-directional communication, for the first time
offering a better way for consumers to relay personal information to the banks.
Instead of waiting to be mailed a form to open an account or order a phone line, a
prospective customer can send an application through cyberspace, resulting in shorter
delivery time, improved accuracy, and quite often a higher positive perception.
Q2. "Too much segmentation can be costly and results in a paralysis by
analysis". Discuss the view that for many markets, Henry Ford's approach of
producing a limited range of products for the "average" customer may be the
most profitable option for a company.
Answer:
Segmentation is the process of grouping people or organizations within a market
according to similar needs, characteristics, or behaviors.
According to Sam Koslowsky, It is the most basic analysis method that can be done
manually and requires separating a group of people into different categories based on
what they have or havent.
Segmentation entails using variables that you know about your customer base, finding
a correlation among those variables, then grouping like individuals together and
marketing to them in a more efficient way. Although segmentation offers some
efficiency, it is limited in accuracy, broad in scope, and it is not predictive at all in
terms of understanding customers' wants and needs.
By making too much segmentation based on several variables a business is doing a
time and money costly process. So the pest approach of production for most
companies is Henry Fords approach of production, which indicates that a limited
range of products for the average customer is indeed to get the most profitable
option. The reason is that mass production, mass distribution, and mass advertising

12

PRINCIPLES OF MARKETING

are costly and not necessary; it can succeed with limited resources and abilities by
concentrating efforts.
Q3 Idea generation is an important activity for companies. But it can happen
at any level. Discuss in lieu with commercialization of idea.
Answer:
Idea Generation: is an important activity for any company, because it is the first step
of new product development, this requires gathering ideas, and evaluating potential
product options. For many companies idea generation is an ongoing process with
contributions from inside and outside the organization. Many market research
techniques are used to encourage ideas including: running focus groups with
consumers, channel members, and the companys sales force; encouraging customer
comments and suggestions via toll-free telephone numbers and website forms; and
gaining insight on competitive product developments through secondary data sources.
One important research technique used to generate ideas is brainstorming where
open-minded, creative thinkers from inside and outside the company gather and share
ideas. The dynamic nature of group members floating ideas, where one idea often
sparks another idea, can yield a wide range of possible products that can be further
pursued.
Another way of generating ideas is buying it from talented and gifted people, who
produce profitable ideas and sell it to companies. This process of producing and
selling ideas is called commercialization of ideas.
Every year a number of graduates, firms and even start-up firms tend to produce and
generate new and advance ideas but, they often are unable to sell or introduce them in
the open markets. Resultantly they either sell those ideas to firms that are operating
either outside the home country or then do not belong to the same environment.
Even sometimes a number of ideas are not rewarded appropriately and the inventors
are not given any particular share of the revenue generated from its idea.
The first and primary phase for the commercialization of ideas is to provide it the
relative protection of copyrights and then establish a proper procedure for accessing
that idea, its royalty allocation and a proper share of the inventor after utilization.
Intellectual Property Organizations should provide visible and lucid guidelines of
registering an idea produced, either by an individual, group of individuals, or then an
organization and the benefits they can get from the registration of those ideas. After

13

PRINCIPLES OF MARKETING

registering various ideas regarding products, services the same ideas should be sold in
the open market, called as market place for ideas. It is an idea that tends to generate
revenue and not a product or service, as a tangible or intangible product is basically
the prototyped and developed form of an idea. Thus if it is a bit difficult to produce
some tangible goods then developing and selling of ideas can be fruitful.
The Governments need to encourage the firms to produce new ideas in different
fields, and all the service organizations to conduct research and development activities
and produce ideas that can surely lead to some economic activities and investments.
Another focus, for selling ideas, should be on the Investors. In product market we
often have a buyer and a seller, but in market place for ideas we have an inventor and
an investor. These two components can join to form a market place for ideas.
Encouraging investors to invest in ideas, if feasible, will encourage inventors
independently and an additive advantage that society can get will be a boom in
economic activities. In the same way, we need to design a proper system in which all
the registrants of ideas should get some rewards for their contribution in some way.
After taking all those necessary measures then a response from the inventors can be
expected, as the main idea behind the selling of an Idea is to make money.

14

PRINCIPLES OF MARKETING

Case Study
Read carefully the case and answer the questions given at the end.
Titan, the market leader, has offerings for various market segments. Pricing and
positioning strategies play an important role in appealing to the respective target
segment. Titan has Insignia, Classique and Sonata as some of its brands. It also has
Fastrack priced between Rs. 900 and Rs. 1,500. One of the problems facing a watch
marketer is the problem of cannibalisation across price points. Timex introduced
Basics (Rs. 450) at the lowest end. Timex's Vista, Aquara and Lextra contribute to
almost three fourths of Timex's sales (These brands start from Rs. 500 onwards). It is
very likely that sub-brands of the brand may cannibalise each other. Titan's Sonata
and Classique ranges have similar designs. The Sonata range extends from Rs. 400 to
over Rs. 1,200.
Questions: Develop segmentation and positioning plan for Sonata covering the
following aspects:
(a) Market Segmentation
(b) Positioning
(c) Marketing Mix
Solution:
a) Market Segmentation:
The market for any product is normally made up of several segments. A market after
all is the aggregate of consumers of a given product. And, consumer (the end user),
who makes a market, are of varying characteristics and buying behavior. There are
different factors contributing for varying mind set of consumers. It is thus natural that
many differing segments occur within a market.
Titan has realized the demand of the society and has marketed its products for each of
the following social segment.
Fashion statement, segmentation is done on the bases of fashion, so Titan has Royale,
Aurum, and Nebula for this segment.
Price Segment, price matter for customers, and in this range, Titan has Raga,
Technology, and Fast track etc.
Product Segment, Just a device to show the time, and in this segment Titan has
Timex, Sonata, and Karishma etc.

15

PRINCIPLES OF MARKETING

Segmentation plans for Sonata can be based on demographic factors, these include:
Age segment: Segmentation is done on the basis of ages of customers. For this
segmentation, Titan has segmented its product according to different age groups.
For the age group 12-20, brands like Sonata, for the age group 18-30, brands like Fast
Track, Technology, and Sonata. For the age group 30-55, brands like Sonata,
Nebula, Raga, Steel, Regalia, and Bandhan etc.
Gender Segment: in this segmentation Titan has Flip for Gentlemen, Raga for Ladies
and Bandhan for Married couples.
Income Segment: On the basis of Income Groups; Generation plays a major role in
segmenting markets. Titan developed many products for new generations like Fast
Track, Technology, and Flip etc.
b) Positioning
Positioning is a concept in marketing which was first popularized by Al Ries and
Jack Trout in their bestseller book Positioning a battle for your mind".
According to them Positioning is what you do to mind of the prospect. They iterate
that any brand is valued by the perception it carries in the prospect or customer's
mind. Each brand has thus to be 'Positioned' in a particular class or segment.
Example: Mercedes is positioned for luxury segment, Volvo is positioned for safety.
The position of a product is the sum of those attributes normally ascribed to it by the
consumers its standing, its quality, the type of people who use it, its strengths, its
weaknesses, any other unusual or memorable characteristics it may possess, its price
and the value it represents.
The main positioning strategy is to either developing or reinforcing a particular image
for the brand in the mind of the customer. The main approaches to positioning
strategy are: Customer benefits approach.
The price-quality approach.
The use or application approach.
The product user approach.
The product class approach.
The cultural symbol approach.
The competitor approach.
Titan can use all these approaches to position its products, but if I was asked to
choose one or two that would have been;

16

PRINCIPLES OF MARKETING

1) Customers benefit approach: This is an important positioning strategy. It

involves putting the brand above competitors, based on specific brand
attributes and customer benefit. In this approach Titan gives emphasis on
different technical aspects such appearance, battery life, and performance etc.
Generally marketers identify positioning in respect of product characteristics
that have been ignored by the competitor.
2) Price quality approach: Sometimes brands attempts to offer more in term of
service, feature, quality, or performance. Manufacturer of such brands charge
higher prices partly to cover the cost and partly to communicate the fact that
they are of high quality. In fact in the same product category there are brands,
through comparable in qualities, which appeal on the basis of price. For
example brands like Rado and Timex use quality and price positioning
technique respectively. Rado competes for quality and Timex competes for
price. It is difficult to use both quality and price positioning together because
there is a risk that high quality-low price positioning technique may infer the
image of the product in the mind of the consumer.
c) Marketing Mix: Marketing mix is a combination of marketing tools that are
used to satisfy customers and company objectives. Consumers often call the
marketing mix the offering. This is controlled by the following variables
often referred to as the four Ps in marketing: Product, Price, Place
(Distribution), Promotion
For Titan, its marketing mix consists of:
Products: in this variable Titans has products that include Timex's Vista, Aquara and
Lextra, Sonata, Fasttrack, Karishna, Classique, Raga, Exacta, Royale, Nebula, Bandhan
and more.
Price: Titans prices varies from Rs 450 to Rs 1500 and onwards.
Place: Titans distribution channels include; Titan Showrooms, time zone, traditional
and nontraditional outlets. It distributes products in about fifty countries around the
world.
Promotion: Titan uses different types of promotions, including sales promotion,
Advertising on Televisions, Printed media, and through the internet, and public
relations.

17

PRINCIPLES OF MARKETING

Assignment C
(1) Who is at the top of the customer pyramid?
a)
b)
c)
d)

Client ( )
Partner
Supporter
Advocate

(2) What does A,I,D,A in AIDA model stand for?

a)
b)
c)
d)

Attention, interest, development, action

Attention, interest, desire, action ( )
Attention ,importance, design, action
Attraction, interest, desire, action

(3) Whose slogan is connecting people?

a)
b)
c)
d)

Samsung
Nokia ( )
Motorola
BSNL

(4) Name the personality who coined the term 'Marketing Myopia'?
a) Patrick Drucker
b) Peter Drucker
c) James Dunken
d) Patrick Samuels
N.B: None of above is right; Marketing Myopia was coined by Theodore Levitt.
(5) In marketing STP stands for
a)
b)
c)
d)

Segmentation, transportation and pathways

Specialisation,Targeting and Production
Segmentation, Targeting and Positioning ( )
Segmentation, Targeting and Production

(6) Under which cell would SBU's (Strategic Business Units) with high growth rate
but low relative market share come under?
a)
b)
c)
d)

18

Dogs
Cash Cows
Stars
Question Marks ( )

PRINCIPLES OF MARKETING

(7) According to Kotler, consumers may have a strong need, a need which cant be
satisfied by an existing product. He cites the examples of harmless cigarettes
etc. as examples of this type of demand. What did he term the demand as?
a)
b)
c)
d)

Latent Demand
Fusion Demand
Surface demand
Pool demand ( )

(8) When a company acquires a supplier through an acquisition strategy, this is

referred as:
a)
b)
c)
d)

Horizontal integration
Forward integration.
Vertical marketing system. ( )
Backward integration

(9) Introducing new products to existing markets is an example of

a)
b)
c)
d)

Concentric diversification ( )
Vertical diversification.
Conglomerate diversification.
Horizontal diversification

(10)
Building mutually satisfying long-term relations with key parties in order
to earn and retain their business is called
a)
b)
c)
d)
e)
(11)
a)
b)
c)
d)

holistic marketing
Relationship marketing ( )
network marketing
internal marketing
alternative marketing
Which of the following best defines marketing?
The maximization of company sales.
improving the market share of organizations
matching the resources of organizations with identified customer needs
increasing the profitability of buyer - supplier relationships ( )

(12)
Directing a company's efforts towards serving one or more groups of
customers sharing common needs or characteristics is defined as
a)
b)
c)
d)

19

Market targeting.
Target marketing.
Market positioning.
Market segmentation ( )

PRINCIPLES OF MARKETING

(13)
a)
b)
c)
d)

20

Product positioning is about

Developing a product.
Developing a perception of the product/service.
Product quality decisions. ( )
The perception of the product from the view of the competitors.

PRINCIPLES OF MARKETING

(14)
a)
b)
c)
d)
(15)

The three step process within marketing segmentation includes

Segmentation, differentiation and positioning.
Targeting, Segmentation, and Positioning
Segmentation, Targeting and Positioning. ( )
Positioning, Mass Marketing and Segmentation.
The definition of market segmentation can best be described as

a) Identifying the distinct profile of a portion of the population, based upon a

number of characteristics.
b) Identifying the distinct profile of a portion of the population, based upon a
single characteristic.
c) A means of identifying sub groups from the larger population based
upon clearly identified common traits and characteristics ( )
(16)

Who are marketing intermediaries?

a) Firms that help the company promote, sell, and distribute its goods
to final buyers ( )
b) Wholesalers
c) Competitors that come between a company and its customers
d) Retailers
(17)

The main aim of global marketing is to:

a) Coordinate the marketing activities within the constraints of the global

environment.
b) Satisfy global customers better than competition. ( )
c) Find global customers.
d) Achieve all of the above.
(18)
Which of the following represents a company's effort to identify and
categorize groups of customers and countries according to common
characteristics?
a)
b)
c)
d)

Global targeting. ( )
Global market segmentation.
Global positioning.
Global marketing research

(19)
With the globalization of markets, the tastes and
consumers world-wide are:

preferences of

a) Becoming similar to the tastes and preferences of American consumers.

b) So different that they can be ignored by international organizations.
c) Converging upon a global norm. ( )

21

PRINCIPLES OF MARKETING

d) Being encouraged by multinational organizations to become increasingly

similar.
(20)
a)
b)
c)
d)
(21)
a)
b)
c)
d)
(22)
a)
b)
c)
d)
(23)
a)
b)
c)
d)
(24)
a)
b)
c)
d)
(25)
a)
b)
c)
d)
(26)

Introducing new products to existing markets is an example of:

concentric diversification ( )
Vertical diversification.
Conglomerate diversification.
Horizontal diversification
For a demand to exist in the market the customer should possess
willingness to buy
Ability to buy
purchasing power to buy
all of the above ( )
Which of the following is not the basis of segmentation
psychographic basis
geographic basis
demographic basis
biographic basis ( )
In Product Life Cycle price skimming can be used in which stage
maturity stage ( )
initial stage
growth stage
decline stage
Product Line Length is
set of all products in the company Product lines
set of all products in the product mix ( )
set of all products in the product line of a company
set of all products in the product depth
Societal marketing is
marketing your product according to social norms ( )
marketing for the social cause
marketing for the profit by social activities
marketing for a cause not for profit
Single Marketing Mix is used by

a) concentrated marketing
b) diversified marketing

22

PRINCIPLES OF MARKETING

c) niche marketing ( )
d) direct marketing
(27)
a)
b)
c)
d)
(28)
a)
b)
c)
d)
(29)
a)
b)
c)
d)

Which one of the following is not the tool of Direct marketing?

e-mail
catalogues
newspaper
(d) sms ( )
A customer becomes price sensitive when
Sellers are many and the demand is inelastic
Buyers are few and demand is elastic
Buyers are few and demand is inelastic
Sellers are many but demand is elastic ( )
Which of the following is correct
marketers can create need in the market
need preexists marketers ( )
marketers can shape needs
none of the above

(30)
___________ competition means all other products which could be
bought by the same money.
a)
b)
c)
d)
(31)
a)
b)
c)
d)
(32)
a)
b)
c)
d)
(33)

Brand
Form1
Generic
Level

The 1st P of marketing mix is ____________.

Product ( )
Price
Promotion
Place
The "Place" P of marketing mix offers customers.
Communication
Solution
Convenience
Competition ( )
In _______________ concept, product is the focal point of attention.

a) Marketing

23

()

()

PRINCIPLES OF MARKETING

b) Selling
c) Production
d) product
_______________ is to get the maximum possible cash flow from the
(34)
business with an end objective of closing down or selling off the business.
a)
b)
c)
d)

24

Harvesting
Divesting
Building ( )
protecting

PRINCIPLES OF MARKETING

(35)
a)
b)
c)
d)

____________is when business enjoys positive cash flow.

Dog
Star
()
Cash cow
Question Mark

____________ is where the company diversifies into product lines

(36)
which are totally unrelated in terms of technology required, customers served,
etc.
a) Concentric growth
b) Horizontal ( )
c) Conglomerate diversification
In terms of the BCG growth-share matrix, businesses in high-growth
(37)
industries with low market shares are termed as _____________.
a)
b)
c)
d)
e)
(38)

stars
Cash cows
Question marks ( )
Wolves
Dogs
___________ Sources means family, friends, neighbours, acquaintances.

a) Commercial
b) Experiential
c) Personal ( )
(39)
____________ is a person whose views or advice caries some weight in
making the final decision.
a) Initiator
b) Influencer
c) Decider ( )
(40)
_______________ in sample selection is an important characteristic to
ensure a representative sample.
a)
b)
c)
d)

25

Randomness ( )
Validity
Reliability
continuity