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Marketing Management

Sample Tests
This document contains sample tests for PGDIT marketing course Hitesh 9/13/2010

Test 1 ...................................................................................................................................................... 3 Test 2 ...................................................................................................................................................... 4 Test 3 ...................................................................................................................................................... 5 Test 4 ...................................................................................................................................................... 6 Test 5 ...................................................................................................................................................... 7 Test 6 ...................................................................................................................................................... 8 Test 7 ...................................................................................................................................................... 9 Test 8 .................................................................................................................................................... 10 Test 9 .................................................................................................................................................... 11 Test 10................................................................................................................................................... 12 Test 11................................................................................................................................................... 13 Test 12................................................................................................................................................... 14 Test 13................................................................................................................................................... 15 Test 14................................................................................................................................................... 16 Test 15................................................................................................................................................... 16 Test 16................................................................................................................................................... 17

Test 1
SECTION A 1(a) What are the major reasons that have enabled the service sector in contributing about 50% of GDP to the Indian economy? (b) What variables would you use in segmenting the market for the following products and why? (i) Credit card (ii) Sports car 2(a) Marketing research is the key to the success of a company. Discuss the above statement, keeping in view an example of the recent past where application of market research helped in formulating the right marketing strategy. (b) Discuss briefly steps of marketing research process. 3(a) Discuss the major objectives of advertising. Give examples in support of your answer. (b) Identify the advertising medium which is more effective in terms of cost and reach in relation to other media available to the marketer. Illustrate your responses with a specific advertising campaign. 4(a) Discuss the various stages of a new product development process by taking the example of an electric car as a new product concept. (b) How can test marketing be helpful in launching new products? 5. Write notes on any three of the following: (i) Marketing Strategies in the decline stage of PLC (ii) Market Intelligence (iii) Sales potential vs Market potential (iv) Channel Participants (v) Attitudes and Perceptions SECTION B Read the case given below and answer the questions given at the end. An electronic gadgets manufacturing firm wanted to market in India a small, hand-held electronic instrument for measuring blood pressure at home. The price of the instrument was fixed at around Rs. 3000 a piece. Being a specialty product, it was perceived to have only a limited clientele. As the firm had no established channel of distribution, it decided to take the direct-marketing route. The product was unique in the sense that it offered the convenience of constant monitoring of blood pressure at home, in office or anywhere, without having to visit the doctor. It could save a lot of time and inconvenience, especially for busy professionals, executives, businessmen and all those who had a hectic work schedule. Since it was a relatively expensive product, senior executives, professionals and businessmen above 45 years of age, having an income of more than Rs. 15,000 per month were expected to be the prospective buyers. The firm adopted the following procedure for identifying and enlisting prospects. In order to prepare a cold list, an advertisement of the product, along with a coupon, was released in two leading business newspapers in Bombay. Interested individuals were asked to fill up the printed coupon and send it to the firm within 10 days to get a free booklet on management of blood pressure. Personal particulars relevant to identifying the qualifying prospects Such as income, age, profession, residential address and details of any health-related problem were to be filled in the coupon. A majority of the people who responded were found to be suffering from blood pressure, obesity or heart-related

problems. A cold list of about 5,000 individuals was generated on the basis of filled-in coupons. This list was further scrutinized and names of individuals below 40 years of age and those who did not fulfil the income criteria were dropped, as were the names of apparently non-serious respondents who might have sent the coupon more out of curiosity. The residual list of about 3,500 respondents was treated as the hot list. Another alternative to this newspaper ad approach, as suggested by the research agency was to obtain a list of credit card holders from reputed banks such as ANZ Grindlays Bank, Citibank, Canara Bank, State Bank of India and Bank of Baroda. The firm could then have sorted out the names of card holders who were above the age of 40 and occupied senior executive positions in private or public organizations. This would have formed the cold list. Next, the firm could have sent a brochure and a personal letter to them offering to arrange a free demonstration of the product at their residences. All those who responded would have formed the hot list. However, this approach was not taken due to some logistic problems. The respondents were then clustered into different segments on the basis of their health status : those who had only mild blood pressure but no other problem; those suffering from obesity and blood pressure both; those suffering from blood pressure and some cardiac problem; those who had blood pressure and diabetes with or without some cardiac problem; and so on. This database of all the listed people with their detailed health profiles helped the firm in identifying specific needs of the respondents. Questions (a) what elements of promotion mix would be more appropriate for the company to market blood pressure instruments, and why? (b) What should be the long run promotional strategy for the company?

Test 2
SECTION A 1 a). Discuss the role of 4Ps in formulating marketing strategies in the following situations? i) Water purifier ii) Small sized car prized at Rs. 2.00 lacs b) Ho would you apply your knowledge of segmentation, targeting, and positioning (STP) for i) Promoting Pulse polio immunisation? ii) Soft drinks 2. a) Secondary data is available in abundance yet, primary data is often collected for marketing decision making. Discuss. b) Explain the major objectives of advertising and publicity. Discuss with the help of suitable examples. 3. a) Consumers buy brands not products. Discuss the importance of branding in the light of the above statement with suitable examples of your choice. b) Sales promotion are conceived with a purpose. What distinct advantages do firms as well as the consumers derive from suvh activities. 4. Write short notes on any three of the following: a) Product Life Cycle (PLC) b) Motivating Sales Personnel c) Decision making process- stages in the buyer decision process d) Strong brands vs weak brands e) Determinants of pricing

SECTION B Please read the case given and answer the questions that follow: For many years McDonald's enjoyed worldwide success built on a few well-known, highly standard conditions. The company with the Golden Arches served a simple menu - hamburgers, french fries, and milkshakes orsoft drinks. The food was priced low, its quality was consistent, and it was served speedily from establishments that all looked alike and were extremely clean. In recent years, however, McDonald's has seen its growth rate slow down and its dominant market position slip. Why? The changes been occuring in the company's external environment. We will start with the population picture. Foir many years McDonals's main customer group was young couples with several kids. Today, people are marrying at a much later age and families have fewer children, so Mc Donald's traditional customer base is eroding. Then there are the cultural changes. Also consumers have become more health conscious. let's face it - burgers, fries, and shakes are not exactly at the top of dietitians menu recommendations today. Consumers want convenience. in the past they hopped in the car and drove to McDonald's. Today they can pop something into the microwave oven or phone domino's to have a pizza delivered. Another challenge came as consumers became more concerned about physical environment. McDonald's polystyrene hamburger packaging was attacked by people who demand the sue of recycled and or/ biodegradable products. Paralleling all these challenges were the growing number and effectiveness of competitors. Questions i) Identify and discuss the major environmental changes being faced by McDonald's. ii) What course of action should the company CEO pursue to regain its dominant market position? b) What king od distribution channel would you recommend for the following products and why ? i) Personal computers ii) Industrial lubricant

Test 3
SECTION A 1 a). What are the main characteristics that distinguish services from physical products? How can tangibility be introduced into services? Explain with the help of examples. b) Imagine you are the manager of a car dealership selling a reputed brand, which is being established in a district headquarter with a population of approx. 400000. What type of market research data and information would help you to complete more effectively? 2. a) What are the steps in the consumer decision making process? Do all consumers decisions involve these steps. b) Why is understanding the consumer post-purchase evaluation process important to marketers? How can marketers control cognitive dissonance? 3. a) Why does the marketing mix change as the product moves through its life cycle? How would you expect the mix to change for an innovative home exercise kit as it moves through the product life cycle?

b) Are intermediaries and their functions necessary aspects of marketing channels? Give reasons 4. Write short notes on any three of the following: a) Advertising and Publicity b) Family and Individual brand c) Full and Marginal cost pricing d) Functional Organizational and product management organization e) Time series analysis and executive judgement method of sales forecasting. SECTION B Please read the case given and answer the questions that follow: The furnishing limited is a small chain of distributors of good quality office furniture, carpets, safes and cabinets. Within each category, the company offers a wide variety of products, with a great many variations of each product being offered. For example, the company currently offers some 4 different designs of chairs and 23 varieties of office desks. The company keeps in touch with advances made in the office furniture field worldwide and introduces those products which are in keeping with the needs of the market in terms of design, workmanship, value for money and technical specifications. Fine furnishing trades only in good quality furniture. Differences between its products and cheaper, lower quality ones are well known to those who have several years of experience in the business. An important feature the company feels is the availability of a complete list of components of the furniture system. This enables customers to add bits and pieces of matching designs and colour in the furniture. Such components are available for sale separately. Systems are maintained in stock by the company for a number of years, and spare parts for chairs and other furniture are always available. The trade is currently witnessing a downturn due to recession. Fine furnishing hasl also experienced the same over the past two years. In addition, it had to trim its profit margins. Last year, it barely broke evenand this year it is heading for a loss for the first time in the company's twenty year history. Questions i) Explain the term product-item, product-line and product mix in the context of the above situation. ii) Advice the company in relation to its product mix. How will your recommendations affect the company's image?

Test 4
SECTION A 1 a). Discuss the factors that you would take into account in designing marketing organization. b) As the marketing chief of a highly progressive herbal skin care company, poised to tap and penetrate the south Indian market, what kind of marketing organization you like to evolve? 2. a) Discuss in brief the various pricing strategies use by marketers. Suggest suitable pricing strategy for i) Standardized software package ii) Mid-sized passenger car b) Explain the concept of PLC and its utility for marketers? 3. a) In an environment that's getting increasingly competitive, channel partners are greatly influencing consumer buying decisions. Do you agree with the above statement? Substantiate your response with suitable examples. b) Discuss the implications of new product development decision on the business enterprise.

4. a) How do you explain the substantial increase in expenditures for services relative to expenditures for goods in the last few decades? b) How can market research help the manager of a service organization? List examples for a hotel, airlines and hospital. 5. Write short notes on any three of the following: a) STP strategies b) Packaging as a pull strategy c) Elements of promotion mix d) Methods of sales forecasting e) Recruitment and selection of a salesmen SECTION B Please read the case given and answer the questions that follow: Hotel holiday Inn spends a large amount of money on a bonus programme for frequent hotel guests, while the hilton corporation, a direct competitor spends hardly a fifth of the amount spent by Holiday inn on it. Hilton puts most of its marketing resources into nationwide print and television advertisements, while holiday inn does little of either. Traditionally, demandfor hotel rooms has outpaced supply. But now cities have too many hotels; occupancy rates have come down and the room rates have also come down. Holiday inn believes that with its bonus programme, they can gather detailed information about the frequent customers and they can be approached through direct main, and also offer incentives like free meals, free stay in hotels particularly where occupancy is low. Yet competitors such as Jilton are of opinion that Holiday Inn is merely rewarding guests who would otherwise also stay at Holiday Inn. Questions i) How is marketing a service different from marketing a good? ii) What techniques Holiday inn should use to fill more rooms?

Test 5
1 a). Discuss the scope and relevance of the concept of market segmentation. will the scope change with the opening of Indian economy? Illustrate how firms would be benefited in marketing their products and services by segmentation. b) Briefly discuss the concept of positioning. What is the positioning of i) Santro car ii) Indian airlines iii) Pepsi iv) Dalda ghee

2. a) Discuss in brief the various pricing strategies used by marketers. Suggest suitable pricing strategy for i) Software ii) 100 cc motorcycle

iii) Luxury car iv) Laptop b) How is a product management organization different from the market centred organization? 3. a) Enumerate and discuss the major packaging decisions appropriate for the following i) FMCG company ii) Consumer durable company b) Discuss the marketing strategies that may be used at the introductory and maturity stages of the product life cycle. 4. a) Discuss the main objectives of sales promotion. Explain some of the sales promotion methods directed at consumers, which can be used by a detergent manufacturer. b) Discuss the role of personal selling and advertising in promotional industrial products. How does it compare to consumer product promotion? 5. a) Middlemen are parasites. This charge has been made by many over the centuries. Is this likely to be the case in a competitive economic system? Why or why not? b) You are marketing manager of a medium sized manufacturing company. The president has just made the following statement "The distribution activity is not a concern of the marketing department. The function of the marketing department is to sell the product ... let be rest of the company handle production and distribution." How would you reply to this statement. Discuss whether you agree or disagree with the statement and justify your answer. 6 (a) Define the term marketing. Discuss the scope and appropriateness of marketing function in satisfying human needs and wants. Given suitable examples. (b) As a marketing manager, propose and formulate STP strategy for home fitness kit targeted at women. Discuss the base for your strategy. 7. Write short notes on any three of the following: a) STP strategies b) Functions of Packaging c) Elements of promotion mix d) Methods of sales forecasting e) Market Intelligence

Test 6
SECTION A 1. What is consumer behaviour? Explain briefly the various factors influencing consumer behaviour taking example of any consumer durable of your choice. 2. (a) Distinguish between Market Segmentation and Product Differentiation. (b) Describe the bases that you will use in segmenting the market for the following products : (i) Hair dryer (ii) Low calorie sweetener 3. What are the objectives of Sales Promotion? As a Sales Manager, you have been assigned the task planning the Sales Promotion program of a readyto-co meal. Discuss the steps that you would follow for effective planning and management of the said program. 4. Write short notes on any three of the following :

(a) Marketing Research as a tool for decision making (b) Functional Organisation (c) Functions of Packaging (d) Stages in new product development (e) Product Life Cycle SECTION B 5. Read carefully the following two case situations given below and answer the questions mentioned at the end of each case. (a) The pen market in India is around Rs. 700 crores and 60 to 650/o of the market belongs to ball pens. Growth is in the range of 20o/o annually. The "X" brand created a kind of revolution by bringing in an offering priced higher than a number of competing brands and also offered greater reliability and superior flow. The brand is a market leader. "Y" was a follower brand priced below "X" and it has become a 50 crore brand. The brand also provided a "secondary" differentiation by introducing a number of colours. Question : Explain the pricing strategy of to this situation. and its relevance (b) ABC is a well-known brand in the cement industry. It has a large distribution network of around 8000 plus stockists and 20 C and F agents. During the last decade the company's market share has gradually declined to 15% from earlier 30%. About a couple of years ogo, the brand opened its first companyowned retail outlet called "ABC Ki Duniya" (World of ABC). The outlet reassures the customer about the genuine material, and encourages interaction besides displaying a range of refractory and aluminium based products. This type of outlet is also likely to enhance the company's image. Question : Taking into consideration the cement market and the commoditised nature of the product, comment on the pros and cons of an outlet of this kind. Would such outlets alone enhance sales? Explain your answer

Test 7
SECTION A 1. WnV and how do people, physical evidence and process play a crucial role in the marketing of services? Give relevant examples. 2. (a) "Salesmanship is inbuilt in packaging of a product." Discuss. (b) Explain the promotional strategy that you would use during the Growth and Maturity stages of the following products : (i) Men's shoes (footwear) (ii) Laptops 3. (a) What are the major considerations involved in designing the marketing organisation? Discuss by taking any example of your choice. (b) How does marketing research aid marketing managers? 4. Write short notes on any three of the following : (a) Concept of optimum marketing mix (b) Data collection methods (c) Role of costs in pricing (d) Regulatory role of the government in marketing (e) Limitations of cyber marketing SECTION B 5. Read carefully the following case and answer the questions given at the end.

Watches is a category which has stiff competition in the present duy context. 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 saies (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. Question : Develop a segmentation and positioning plan for Sonata covering the following aspects : (a) Market Segmentation (b) Positioning (c) Marketing Mix

Test 8
SECTION A l - Explain the various segmentation bases used by marketers, with suitable illustrations. Suggest suitable segmentation basis for the following, giving reasons : (i) Light Commercial Vehicles (LCV) (ii) Contact lenses 2. (a) How does the Product Life Cycle (PLC) influence the marketing mix decisions ? Explain with suitable examples. (b) Packaging has a direct bearing on the consumer buying behaviour. Explain. 3. (a) Distinguish Primary data from Secondary data' Enumerate and discuss briefly the major sources of secondary data available for the marketers. What are the limitations of using secondary data ? (b) Why and when do firms go in for related and unrelated diversification decisions ? Explain with examples. 4. Write short notes on any three of the following : (a) Matrix organisation (b) Product augmentation (c) Cyber marketing (d) Steps in selling process (e) Determinants of Price SECTION B 5. Read carefully the following two case situations and answer the questions rnentioned at the end of each case. (a) Nestle has launched brands Quality Stree, Lion and After Eight (Chocolates). These brands are being imported from Europe. Qualtty Street is an assortment of chocolates priced at Rs. 175 for 218 gm. After Eight is a popular adult chocolate priced at Rs. 125 for 200 gm and Lion is a caramel wafer bar pnced at Rs. 20 for a 45 gm bar. (Kit Kat is priced at Rs. 6 for a 17 gm bar and has a chocolaty taste while Lion has a crunchy taste). The brands have different tastes and will appeal to different target segments (though the target segment is one which may have already been exposed to these brands during visits abroad). These brands have been introduced in metros in upmarket stores which sell brands bears the label "lmported by Nestle India Ltd." indicating that they may be better than smuggled ones (which may be stale).

Question Suggest suitable media /media vehicles for promoting these brands. Give reasons in support of your answer. (b) The herbal shampoo market is valued at around Rs. 100 crores. Nyle, Ayur, Dabur and Biotique are some of the established brands in the market. Helene Curtis (JK Group) has introduced a premium herbal shampoo (with variants Shikskai, henna and qmla and brqhmi and josur) priced between Rs. 80 and Rs. 90 (500 ml) for different types of hair. The proposition is the benefits offered by the variant based on the combination of herbs. The benefits offered by the variants range from extra protection and nourishment to colour, body and bounce. The shampoos have been launched under the brand name Premium Herbsl Shsmpoos and they target urban housewives with a monthly household income of Rs.25,000. The brand is distributed through 70,000 retail outlets and 120 Raymond shops. The company has planned only point of purchase (POP) posters initially and may consider the electronic media later. The shampoo has an annual advertising expenditure of Rs. 10 crores. Question Comment on the marketing mix of JK's Premium Herbsl Shampoos and give suggestions for making it more effective.

Test 9
SECTION A 1. Briefly discuss the different methods of designing a marketing organisation. Suggest a.marketing organisation set up for mid sized-pharma company dealing in OTC drugs and having a countrywide market. Justify your answer. 2. (a) Explain the major objectives of advertising. Distinguish between Advertising and Publicity. (b) Briefly explain the various pricing methods available for the Indian markeler, giving suitable examples. 3 (a) Discuss the factors that govern the selection of channels of distribution by a manufacturer. (b) Suggest appropriate channel design in the following situations: (i) An international brand entering India with range of personal care products for men. (ii) Manufacturer of premium/expensive footwear for women. 4. Write short notes on any three of the following : (a) Marketing Research Procedure (b) Howard-Sheth model of Consu mer Behaviour (c) Brand name selection (d) Elements of Services Marketing Mix (e) Stages of New Product Development Process SECTION B 5. Read the case given below and answer the question given in the end. B&G Shoprite Ltd. is a national manufacturer of a range of cosmetics and over-the-counte? drugs. It has developed a good reputation in the industry supplying own-label cosmetic products and generic drugs direct to chemist convenience stores. This reputation has been achieved thrrough close attention to quality, excellent service and competitive pricing. The company is unknown outside the industry. It has never launched any product of its own into the consumer market. As a company, it works very, closely with its retail customers and will develop products to their specification.

Recently, the cornpany has consid ered diversifying into men's shaving products. The product would be bought at sirnllar outlets to its existing products and could be developed within the company's existing research and development department. The shaving product that the cornpany has developed is men's shaving cream that is applied on the face, left for 5 minutes and then washed off. This process will not require any use of a razor. Initial research has shown that the product might appeal to people who are in the age band 18 - 30 years old, but no further detailed research has been carried out. The shaving product is revolutionary in that no such product is currently available on the men's shaving market. Extensive tests have been carried out and no risk of harm is entailed in its use except for those men with sensitive skin. The company decides to develop this product as its own brand. The brand name is 'A Close Shave'. The product is supplied in tubes or containers, It is priced at approximately double the price of existing shaving foams in the market, but no replacement razors will ever be required. trt has been initially distributed through existing channeis and not supermarkets because of likely price requirements. The launch of the product took place in the South and used prime-time television slots. The adverts emphaslzed the product was 'manly.enough for rnen'. Despite rave reviews the product launch was a flop, The company achieved only 300/o of its targeted sales in the first 3 months. After consultation with its advertising agency' the company decided to comnnission more extensive research with 250 consumers in the targeted group. The responses can be summarised by the few quotes given below. 'The shaving foam I use is manly enough for me.' 'l had to laugh at that advert. It wasn't me at all.' 'l might use it but only if I was convinced it was not harmful to my face.' 'lt's a bit expensive. I wouldn't pay that much for a shave.' 'l like my dry shave and nothing will shift me from that.' 'l can't imagine any of my mates being seen putting a cream on their face. I like the idea but no I wouldn't buy the product.' Questions (a) Highlight the importance of market segmentation for a branded product aimed at the consumer. (b) How might B&G Shoprite Ltd., consider segmenting the market for 'A Close Shave'? (c) Identify some possible parameters by which 'A Close Shave' might be positioned.

Test 10
SECTION A 1. (a) Explain the term Market Segmentation. Why should marketers consider segmentation as an important marketing decision ? Discuss with the help of suitable examples. (b) Discuss the segmentation variables you will consider to segment the market for a 150 cc premium motorcycle. 2. (a) Briefty explain the various steps in the consumer decision making process. Do all consumer decisions involve these steps ? Justify your answer. (b) What type of packaging would you recommend in the fohowing cases and why? (i) Sea food for exports (ii) Premkim ink pen 3. (a) Discuss the major obectives of sales promotion. Explain the sales promotion methods directed at consumers which can be used by a herbal hair dye manufacturer. (b) Discuss the distinct stages in product life cycle. giving suitable examples. 4. Write short notes on any three of the following:

(a) Pricing as a tool for Market cultivation (b) Purpose of Marketing Research (c) Product differentiation vs. Product diversification (d) Perception (e) Cybermarketing SECTION B 5. Study the case given below and answer the cpiesiions given at the end. Office Needs, is a small chain of distributors of good-quahty office furniture, carpets, safes and filing canets. Within each category, the company offers a wide variety of products with a great many variations of each product being offered. For instance, the company currenily offers around 42 different designs of chairs and 23 varieiies of office desks, The company keeps In touch with advances made in the office furniture field woddwide and Introduces those products which are in keeping with the needs of the market in terms of design. workmanship, value for money and technical specifications. Office Needs trades only in quality furniture which is sturdily constructed. Differences between its products and cheaper, lower quality ones are well known to those who have several years of experience in the business. An Important feature, the company feels, is the availability of a complete list of components of the furniture system. This enables the customer to add bits and pieces of matching designs and colour in the future. Such components are available for sale separately, Systems are maintained in stock by the company for a number of years, and spare parts for chairs and other furniture are always available. The trade is currently witnessing a downtrend due to recession and players from local ursorganised sector. Office Needs has also experienced the same over the last two years. In addition, it had to trim the profit margins. Last year, it barely broke even and this year it is heading for a small loss for the first time in the company s ten year history. Questions: (a) Explain the term Product item, Product line and Product mix in the context of the above situation. (b) Advise the company in relation to Its Product muc decisions and its effects on the company s image (c) What strategy would you recommend to counter competition from the unorganbed sector?

Test 11
SECTION A 1. (a) Discuss the meaning, scope and role of marketing function in the exchange process. illustrate with suitable examples. (b) Distinguish Marketing mix vs. Marketing strategy. 2. (a) When is Personal Selling more appropriate than other methods of Sales Promotion? Explain with examples. (b) What are the major considerations involved in designing the marketing organisation for a global furniture manufacturer foraying into Indian market? 3. (a) Briefly explain the concept of positioning. Suggest positioning strategy for the following (i) A new domestic airline (ii) flat Screen TV (b) How does marketing research aid marketing managers? 4. Write short notes on any three of the following (a) Cybermarketing (b) Relationshjp of a segment to a market (c) Market potential

(d) Concept of PLC (e) Marginal cost PriCing SECTION B 5. Read the case gwen below and answer the questions given at the end. For many years McDonald s enjoyed worldwide success built on a few well-known, highly standard conditions. The company with the golden arches served a simple menu hamburgers, French fries, and milk-shakes or soft drinks. The food was priced low, its quality was consistent, and it was served speedily from establishments that all looked alike and were extremely clean. In recent years, however, McDonalds has seen its growth rate slow down and its dominant market position slip. Why? The changes that have been occurring in the companys external environment. Lets start with the population scene. For many years McDonald s main customer group was young couples with several kids. Today, people are marrying at a much later age and families have fewer children. So McDonald s traditional customer base i eroding. Then there are the cultural changes. Also consumers have become more health conscious. Lets face It burgers, fries and shakes (the foundation of McDonald s success) are not exactly at the top of the dietitian s menu recommendations today. Consumers want convenience. In the past, they hopped in the car and drove to McDonald s. Today they can pop something into the microwave oven or phone Domino s to have a pizza delivered. Another challenge came as consumers became more concerned about their physiCal environment. McDonald s polystyrene hamburger packaging was attacked by people who demand the use of recycled and/or biodegradable products. Paralleling all these challenges were the growing number and effectiveness of competitors. Questions : (a) List out and discuss the major environmental changes being faced by McDonald s. (b) What should be the course of action to regain its dominant market position and to tackle competition?

Test 12
SECTION A 1. (a) Explain the concept of Marketing Mix. Discuss the rationale for extended marketing mix for services. (b) How do the 4 Ps vary across the product lile cycle? Discuss with the help of a suitable example. 2. To fight against dowry system, the Government of a state approaches you as a leading social marketing firm to alleviate and curb this menace. Prepare a complete social marketing proposal outlining the four Ps and how they will be applied to the programme. 3. (a) In what- way is the knowledge of the Indian consumer environment a prerequisite for marketers in the design and development of suitable marketing plans? Discuss. (b) Discuss the role of packaging in market development, with suitable examples. 4. Write short notes on ang three of the following : (a) Measuring Advertising Effectiveness (b) Functional Organisation (c) Pricing methods for a new product (d) Functions of Wholesalers and Retailers (e) Pitfalls of Cyber Marketing SECTION B 5. Read the case given below and answer the questions given at the end. CASE

Japanese manufacturers dominate the world motor cycle market. They have models in every part of the market and are continually bringing out new versions; indeed, some critics think that the rate of new model introduction has become counter productive, since the market will not be able to absorb them all. Harley-Davidson, the American manufacturer, has survived and is successfully selling its nostalgically styled models at high prices in major western markets. The British industry, which once led the world, disappeared completely. All leading Indian motor cycles are being manufactured in joint ventures with Japanese companies. There are some manufacturers in Europe who tend to specialize e.g. in high powered sports models or small mopeds. Questions: (a) How would you go about segmenting the market for motor cycle? (b) what segments would you recommend an Indian manufacturer to tackle in (i) India, (ii) Europe?

Test 13
SECTION A l. (a) Discuss the stages in the buyer decision process, giving suitable examples. (b) How does buyer decision process vary for (i) Fast moving consumer goods, and (ii) Consumer durables ? 2. (a) Briefly describe the stages in new product development strategy. (b) Identify some major sources of Secondary data used in Marketing Research. Comment upon the limitations of using secondary data in decision making. 3. (a) What is Marketing Communication ? Discuss its role in accomplishing the firm's marketing goals' (b) Discuss the various physical distribution task that a company should consider for eflectively marketing its products. 4. Write short notes on any three of the following : (a) Research lnstrument (b) Reasons for Diversification (c) Brand name selection (d) Media Scheduling (e) Steps in selling process SECTION B 5. Study the case given below and answer the questions given at the end. Water purification (households) market in India is slowly becoming competitive with the introduction of Aquaguard in a big way. Zero-B is another brand which has been in the market for the last few years. It also offers portable models (tumblers). New brands are also entering the market. Aquapen, a pocket sized water purifier was launched in 1997 at a cost of Rs. 594. The product works on a 6V battery and has a LED indicator which flashes every fiive seconds to indicate the product is operational. The purification process lasts for about 50 seconds. A battery lasts for about 5000 glasses. The company planned to retail the product at around 50,000 outlets and had planned an advertising budget of Rs. 5 crores. Taking into account, the other brands in this market, formulate a detailed marketing plan for Aquapen addressing the following issues : Questions : (a) Specify the target segment you would select for Aquapen. (b) What will be its positioning ?

(c) Identify the media strategy to reach out to the target segments. (d) Comment on the distribution strategy.

Test 14
SECTION A 1. (a) Briefly explain the various pricing methods available for Indian marketers, with suitable illustrations. (b) Discuss the variables that affect the distribution decision for the following : (i) Fast food joint restaurant (ii) Personal Computers 2. Why and how do psychological factors influence consumer buying behaviour ? As a potential buyer of a latest brand of DVD, briefly explain the social and cultural factors that affect your buying decision. 3. (a) Discuss the major objectives of Sales Promotion. As a marketer of a leading consumer durable company, when do your consider it an appropriate time to organise such promotions and why ? (b) Personal Selling and Advertising are the two major vehicles of communication for marketing industrial products. Discuss with a suitable example of your choice. 4. Write notes on any three of the following : (a) PLC as a tool for market development (b) Matrix organisation (c) Bases for Segmentation (d) Approaches to Sales forecasting (e) Limitatlons of Cyber marketing SECTION B 5. Study the case given below and answer the questions given at the end. BPL has launched the digital camera VPC-G200EX at Rs. 39,000. lt does not require conventional films as it can store images in its memory. A niche segment of PC users, journalists, multimedia agencies, architects, doctors and professionals are the primary segments for the product. The benefits of the product include viewing pictures on a built-in LCD screen, and the voice memo (6 seconds) that could be added to every picture. Web page designers could have pictures on the Internet through their personal computers. These images could also be retouched or modified using appropriate software.Photo albums can be created on floppies. The product may compete with scanners which could scan conventional photographs into a computer. BPL has positioned the product as 'future of photography'. The product is available in 25 showrooms of BPL- Phillips, a competing brand, has also launched digital cameras. Questions : (a) Who, in your view, would be the most appropriate target consumers for the product and why ? (b) Outline suitable promotion and positioning strategies for the product.

Test 15
SECTION A 1. (a) Marketing success largely depends on the effective STP strategies adopted by the firm. Discuss the above statement with two examples of your choice.

(b) What would be suitable segmentation basis for the following and why ? (i) Premium brand of after shave lotion (ii) Rs. 1 lac small car proposed by a leading lndian car manufacturer. 2. (a) What is Marketing Research? Discuss its scope and major advantages that firms derive by undertaking this activity. (b) What are the criteria marketers must evaluate before selecting a brand name? 3. (a) Salesmanships in-built with every attractive packing. Do you agree with the above statement ? Discuss with the help of suitable examples. (b) Briefly discuss the factors that marketers should consider while determining the promotion mix for their offerings, giving suitable examples. 4. Write notes on any three of the following : (i) Howard-Sheth Model (ii) Characteristics of organisational consumers (iii) Routinised response behaviour (iv) Functions of Retailers (v) Advantages of cyber marketing SECTION B 5. Study the case given below and answer the questions given at the end. Mr. Harish Jain, CEO of Energetic Enterprises, has established the firm for the manufacture and marketing of an innovative product. The firm earned a reputation of its product within two years of its inception and enjoyed monopoly position in the market for its product. Now it has a turnover of about Rs. 80 crores. Three years back, some firms entered the market and offered cheap substitutes which were of better quality. This year, Mr. Harish Jain is worried because about 40% of the marketshare has already been taken away by the new firms and he is not able to check this trend. Mr. Jain has been looking after both production and marketing functions though finance is being looked after by a finance manager having a professional degree in chartered accountancy Mr. Jain has recently lowered the price of his product to fight competition, but even this has not helped. He has now approached you for advice to stabilise his sales volume. Questions : (a) What is the orientation of Mr. Jain in selling his product ? (b) What environmental factors have caused a worry to Mr. Jain ? (c) As a consultant, what strategies will you suggest to check further tall in marketshare?

Test 16
SECTION A 1. (a) Marketing social issues is more challenging than Product/service Marketing. Explain. (b) Identify any socially relevant issue of your choice in the Indian context and discuss how would you go about marketing it. 2. (a) Discuss the four distinct stages in product life cycle. (b) Identify at what stages of their respective PLCs are the following products in the indian market and accordingly suggest suitable strategies for these products : (i) Mobile Phones (ii) Portable two-in-one stereo systems 3. (a) What are the major objectives of product-line decisions ? List out the merits and demerits that accrue from these decisions. Explain by giving suitable examples.

(b) Explain the steps involved in the consumer decision making process. Do all consumer decisions involve these steps ? Illustrate. 4. Write notes on any three of the following : (a) Benefits of Segmentation (b) Functions of Packaging (c) Sales Forecasting (d) Role of Branding (e) Direct Marketing SECTION B 5. (a) Procter & Gamble and HLL are highly competitive companies in the shampoo market. Both the companies have brands for various segments, It may be worthwhile to mention that HLL has created and nurtured Sunsilk and Clinic brands for more than two decades in the lndian market. P & G's Pantene, HLL's Organics and Colgate Palmolive's Optima got into the market almost the same period of time. Pantene and Optima were priced around R s. 72 for 180 ml (some months after the launch) while Organics was priced at around Rs. 65.15 for 180 ml. The three brands were also available in sachets. They were positioned with ''haircare/nourishing" propositions. Question : Comment on the pricing approach of the three Brands mentioned above. (b) ACC is a well-known brand in the category of cements. It has a large distribution network of around 7000 stockists and 120 C & F agents. In 1995, the company's market share declined to 15% from the earlier 30%. About three years back the brand opened its first company owned retail outlet called 'ACC Ki Duniya" (World of ACC). The outlet Reassures the customer about the genuine material. and encourages interaction. This type of outlet is also likely to enhance the company's image. Question : Comment on the pros and cons of an outlet of this kind. Would such outlets alone enhance sales ? Explain.