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immediately CLASS TEST 2 Post Graduate Diploma in Management (Batch:2010-12) Term IV

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Subject : Marketing Planning & Strategy Time : 45 Minutes Attempt all questions. A. Fill in the blanks (Max. Marks 10) 1. Customer is with Vicco Turmeric cream, being India's first fairness cream although it is not positioned as a fairness cream. The product, based on turmeric, has a 54 year old history. 2. There may be differences in the two companies terms, delivery, customer-service capabilities, follow-up, return policy, value-added services, etc. However, all of these are part of the.............................................. 3. HPs portfolio spans everything in IT from enterprises to servers and networks. It has software and a lot of services. The company can do almost everything. The need is to perhaps put .. so that the customers know what HP is all about. 4. The philosophy behind the is that the diversified firm should be managed as a portfolio of businesses, with each business unit serving a clearly defined product-market segment with a clearly defined strategy. Each business unit in the portfolio should develop a strategy tailored to its capabilities and competitive needs, but consistent with the overall corporate ... 5. Distinctive Competence is a set of that certain firms possess allowing them to make inroads into desired markets and to gain advantage over the .; generally, it is an activity that a firm performs better than its competition. 6. On-time service, a mantra chosen for gaining ..., has helped IndiGo become the second-biggest airline. People fly to be on time and for point-to-point travel. 7. Cost Leadership strategy is achieved by ..profits by .. costs, while charging industry-average prices. 8. is described as the framework that firms can use to identify and evaluate the ways in which their resources and capabilities can add value. 9. means that customers will be less sensitive to price increases, as long as the firm can satisfy the needs of its customers. Thus the .. of the firm will not be affected. 10. Prospectors type organisations primary capability is in finding and exploiting and Max. Marks: 40

Contd. ..p2..

..p2.. B. Match the sentences in Part A with the sentences in Part B below (Max. Marks 10) Part A 1. Four significant factors contribute to the corporate declines, called strategic quadrangle. This 2. The organisation of the Strategic Business Unit is determined by the needs of the market. This 3. IndiGo has a single-minded operational focus on keeping costs low, which provides a simple, uncluttered, punctual and quite error-free travel experience for its passengers. It 4.In the Cost Leadership Strategy, organisations 5. Cost Leadership strategy is being the leader in terms of cost in the industry or market. Simply being amongst the lowest-cost producers is not good enough, as it will 6. Analysing the firm's value-chain helps to assess and perceive the competitors valuechain, 7. The firm, pursuing differentiation strategy, 8. In contrast to Miles and Snow framework, Porter proposed that business strategy should be viewed as a product of how the firm 9. Defenders type organisations are protectionoriented, 10. Analysers type organisations are able to use less advertising than Prospectors, since Prospectors Part B 1. compete for a wide customer-base on price. 2. leave the firm wide open to attack by other low cost producers who may undercut their prices and therefore block the firms attempts to increase market share. 3. helps in developing a balance in the earnings, sales and the assets at a level which is controlled and acceptable for taking the right amount of risks. 4. can thwart suppliers power because of premium price it gets. It helps the firm absorb higher costs. 5. have already created awareness of the product category, and charge lower prices than Prospectors to induce switching. 6. uncover ways to cut costs, and find ways to add value to customer. 7. seeking stability by maintaining current market positions and defending against encroachment by other firms. 8. has chosen a different way of achieving competitive advantage in a crowded marketplace. 9. includes Ecosystem, Diversity Management, Talent Management and Success. 10. creates customer value relative to its competitors (i.e., differentiation or low cost) and how it defines its scope of market coverage (i.e., focused or market-wide).

C.State the following statements as True or False (Max. Marks 10) 1. What determines the success of a company ultimately is not a particular strategic orientation, but simply establishing and maintaining a systematic strategy that takes into account a company's environment, technology, and structure. (True/ False) 2. Service can be defined as an activity or benefit that one party can offer to another that is essentially intangible and that does not result in the ownership of anything. Its production may or may not be tied to a physical product. (True/ False) 3. Available market is that part of the potential market who has enough money to buy the product. (True/ False)

4. Entry is more difficult when strong economies of scale and learning is needed to yield a low relative
cost per unit. (True/ False) Contd. ..p3..

..p3..

5. An industrys customers constantly look for reduced prices, improved product quality and added
services and thus can affect competition within an industry. (True/ False)

6. The government auctions bandwidth to new cellular services. This raises the bargaining power of
government as suppliers of bandwidth to the cellular industry, thereby reducing the attractiveness of the industry. (True/ False) 7. The organisations can influence the proportion of a population through primary demand advertising and through pricing. If either of these two factors change, market sales potential changes, other things being equal. (True/ False) 8. In the introduction stage, the marketing communications seeks to build product awareness and to educate potential consumers about the product. (True/ False) 9. At maturity stage in product life cycle, pricing may be lower because of the new competition. (True/ False) 10. Under the top-down approach of sales forecast, the top management takes the responsibility of forecasting and preparing an overall forecast, perhaps using aggregate economic data, current sales trends or some other methods. (True/ False) D. Complete the following sentences (Max. Marks 10) 1. If a company has low served market share, .. . 2. The more the firm knows about a customer - age, gender, what he owns, what he spends and what his preferences are.. 3. Cosmetic companies are developing . 4. Market Segments are best defined . 5. 6. In modified rebuy situation, the buyer has purchased the product or service before. . . In reality, often combinations of different descriptors are used to more precisely target an attractive segment, .. . The attractive marketing segment for the company . For medium market-attractiveness and weak competitive position, the strategy . For medium market-attractiveness and strong competitive position,. .

7. 8. 9.

10. Focused market entry strategies .. .