Section –A

Q1. Need Family, product family, product class, product type are all elements of

a) Product hierarchy

b) Product mix

c) Product levels

d) New product development stages

Q2. What is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market called

a) Marketing Mix

b) Marketing environment

c) Marketing channels

d) None of these

Q3. What is the concept that holds that the consumer will prefer products that are widely available and inexpensive called?

a) Production Concept

b) Product Concept

c) Marketing Concept

d) Selling Concept

Q4.The concept that holds that consumer and business, if left alone, will ordinarily not buy enough of the organizational product. The
organization must, therefore undertake an aggressive selling and promotional effort. Which of the following concepts’ is discussed above?

a) Production Concept

b) Product Concept

c) Marketing Concept

d) Selling Concept

Q5.The difference between the total customer value and the total customer cost is known as

a) Customer Delivered Value

b) Total Customer Value

c) Total Customer Cost

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 d) None of the above

Q6.Which of the following are the stakeholders of the company

a) Customers

b) Employees

c) Suppliers

d) All the Above

Q7.Michael Porter of Harvard proposed the value chain as the tool for identifying ways to create more customer value. The activities
included in this are

a) Only Inbound and Outbound Logistics

b) Inbound , Outbound logistics , Operations

c) Inbound , Outbound logistics , Operations , Marketing Sales and Services

d) None of the above

Q8.In BCG Matrix , What is the term given to a company that operates in a high growth -market but have low relative market share

a) Question Mark

b) Stars

c) Cash Cow

d) Dogs

Q9.Which of the following are included in the marketing process

a) Analyzing market opportunities and developing marketing strategies

b) Planning marketing programs

c) Organizing, Implementing and Controlling the marketing efforts

d) All the above

Q10.Society shapes our

a) Beliefs

b) Values

c) Norms

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 d) All the above

Q11.This consist of a large identifiable group within a market similar wants , purchasing power , geographical location , buying attitude ,
or buying habits . This is known as

a) Target Market

b) Market Segmentation

c) Niche Marketing

d) None of the Above

Q12.Buyers are divided into different groups basing on the life style. This comes under which type of Segmentation

a) Demographical Segmentation

b) Psychographic Segmentation

c) Behavioral Segmentation

d) None of the Above

Q13.Behefits forms the basis of which segmentation Approach

a) Demographical Segmentation

b) Psychographic Segmentation

c) Behavioral Segmentation

d) None of the Above

Q14.which of the following is an act of designing a set of meaningful differences to distinguish the companies’ offering from competitors
offering

a) Positioning

b) Differentiation

c) Value Positioning

d) None of the above

Q15.Which of the following statements about PLC is / are true

1. Products have limited life

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 2. Product sales passes through distinct stages, each posing different challenges, opportunities and problem to the seller.

3. Profits rise and fall at different stages of PLC.

4. Products require different marketing, financial, manufacturing, purchasing and human resource strategies in each stage of their
life cycle.

a) Only 1 is true

b) Only 2,3 are true

c) 1, 3, 5 are true

d) All are true

Q16.Which strategy makes sense when the market is large, the customers are unaware of the product, buyers are price sensitive and the
unit manufacturing cost falls as the company attains economies of scale due to experience?

a) Rapid Penetration

b) Slow Penetration

c) Rapid Penetration

d) Slow Penetration

Q17. Which of the following is the last stage in the process of New Product Development

a) Idea Generation

b) Market Testing

c) Commercialization

d) Product Development

Q18.The total number of items in the product mix is called

a) Width of the product mix

b) Length of the product mix

c) Depth of the product mix

d) Consistency of the product mix

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Q19.The Product life cycle follows the sequence of stages as

a) Introduction, Growth, Decline, Maturity

b) Introduction, Maturity, Growth, Decline

c) Growth, Maturity, Decline, Introduction,

d) Introduction, Growth, Maturity, Decline

Q20.Which of the following can be called as form(s) of direct marketing

a) Direct Mail

b) Telemarketing

c) Internet Marketing

d) All the above

Q21. . …………………. Break down ‘bulk’.

Q22. The Strategy that involves the manufacturer using sales force and trade promotions to induce intermediaries to carry, promote and
sell the product to end users is called as

a) Push Strategy

b) Pull Strategy

c) Any of the two

d) None of the two

Q23.Many Contracts are awarded on …………..basis.

Q24.A SWOT analyses helps to determine a business overall attractiveness. What is the proportion of opportunities and threats for a
speculative business?

a) High –Low

b) High – High

c) Low – Low

d) Low – High

Q25. Goods and Services when deliberately sold below cost to encourage sales is known as …

Q26.Which of the following is the most basic marketing mix tool

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 a) Promotion

b) Price

c) Place

d) Product

Q27.When one division of an organization transfers or sells goods and services to another division, the price charged is known as
………………..

Q28. Which type of demand is usually associated with Industry product

a) Elastic

b) Inelastic

c) Either a or b

d) None of the above

Q29.Contribution pricing is …………Price - ………….Cost

Q29…………are sets of interdependent organizations involved in the process of making a product or service available for use or
consumption.

Q30 The paid form of Non-Personal Communication is known as …………………….

Q31.Which type of retail institutions will sell standard merchandise at lower prices by accepting lower margins and higher volumes?

a) Department Store

b) Off- price Retailer

c) Discount Store

d) Catalogue showroom

Q32. Neon Signs are part of ……………..media.

Section B -Case Study

The Khadi and Village Industries Commission (KVIC) was set up as a statutory body under a parliamentary act in 1957 to promote Khadi
and other village industries. During the year 2002-2003, KVIC logged sales to the tune of Rs.10, 000 crores and earn a profit of Rs 3398
crores. It is one of the largest consumer goods marketers with 487 products under its product portfolio sold through 7,000 outlets. KVIC’s
product portfolio include soaps, shampoos, processed foods , leather , handmade paper , handloom and Khadi products.

The broad objectives of KVIC are

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 • The social objectives of providing employment.

• The economic objective of providing salable articles , and

• The wider objective of creating self- reliance amongst people and building a strong rural community spirit.

Its key activity include

• Providing technical, financial, and marketing support to entrepreneurs in the Khadi and village industries.

• Generating Rural Employment

• Undertaking Rural development programs with other agencies engaged in rural development and ,

• Undertaking R&D activities in the field of rural Industries.

It provides employment to 66lakh people and provides support to 6000 corporate and 165 000 village entrepreneurs, Nearly 3 lakh
villagers have been covered under its program. KVIC has plans to double its sales to Rs 20000 crores within the next five years and to
provide employment to another 25 lakh people by the end of 2006.

During the year 1999, KVIC reviewed the marketing strategy it adopted to promote village industry products and found certain gaps.
Therefore it set up an expert committee to provide recommendations on the marketing strategy to be adapted.

The committee conducted a market survey across the country to study the market potential and customer perceptions for its product. The
committee found that the Eco- Friendly have acceptability among customers. However it found that consumers were either unaware or had
certain negative perceptions about its product. Even those who were aware of the product believed that the village industry products are of
low quality. Similar findings were made about channel partner’s distribution and committee also found out that existing products were low
quality. The committee also found out that the existing 7000 KVIC outlets were in no way capable of taping the right customers for the
product .

Based on the survey, the committee made certain recommendations about the market strategy to be adapted. The committee suggested that
in order to bring out awareness about the products among the consumers, the product had to be branded. It felt since the products are to be
sold in the consumer market, a strong brand would differentiate KVIC products from the clutter. The committee recommended that KVIC
needed to dispel the negative perception about the quality of its product. It also recommended that KVIC explore the distribution channel
alternatives available beyond the existing KVIC outlets.

Based on the recommendations, KVIC Decided to launch its village industry products under a single umbrella brand –sarvodaya. KVIC
took special steps to address about quality. It fixed quality norms that the local units have to follow in producing the product. KVIC
decided to invest rs 8 crores for quality up gradation and administration. The sarvodaya Quality Circle (SQC) was constituted to oversee
the quality aspect. This is headed by the Deputy CEO of the village Industry Division, JL Choudhry, and has represented from the Bureau
of Indian Standards (BIS) and KVIC’s Science and Technology division. The quality norms fixed are in conformation with the standards
set by BIS and AGMARK. Toilet soaps confirm the BIS standards (76 TFM), pickles conform to FPO standards and honey is processed as
per Special Grade of AGMARK. SQC has set its own standards for further augment the process it had tied up with IIT Delhi to provide

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technical inputs to its rural industries program On the pricing front, KVIC decided to adopt a competitive pricing strategy, KVIC ensures
that the prices of the product sold under the Sarvodaya brand are much lower than the price of leading brands.

It has decided to distribute its products outside the KVIC network various retail outlets. The brand has launched in Mumbai in 2001.
Products are distributed in 5000 retail stores in Mumbai. KVIC plan to launch the brand in Bangalore, New Delhi and Eranakulam.

Questions:

1. How do you think the brand can help KVIC to sell its village Industry products?

2. Analyze the steps taken by KVIC to change customer perception and to improve the acceptability of its product?

3. What other steps can KVIC take to make Sarvodaya Brand successful?