DEPARTMENT OF BUSINESS MANAGEMENT ST.

JOSEPHS DEGREE & PG COLLEGE BBA II YEAR II SEMESTER I INTERNAL ASSESSMENT TEST-28th, 29th, 30th Jan, 2012-13 PRINCIPLES OF MARKETING BBA404

Total marks: 30 Time:

I. Answer any five questions 1. What is Market? State the classification of Market?

Marks: 5x3 = 15

2. What is marketing mix? Explain different elements or components of marketing mix? 3. Write a note on Micro-Marketing Environment 4. Distinguish between Goods & Services? 5. State the functions of Marketing? 6. Explain the Characteristics of marketing Environment? 7. Explain the terms: Perceived Value and Customer satisfaction 8. Explain the Impact of Drives for adopting marketing to the new economy II. Answer all the questions 9. a). Define Marketing and explain the nature and scope of marketing OR b). Briefly explain the various concepts of marketing. 10. a). Distinguish between selling & marketing concept. OR b). Explain the opportunities and challenges of marketing 11. a). Explain the Role of Marketing Manager in marketing OR b). what is Marketing Environment? Explain various components of macro-marketing Environment? Marks: 3x5 = 15

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PRINCIPLES OF MARKETING KEY

I. Answer any five questions Marks: 5x3 = 15

1. WHAT IS MARKET? STATE THE CLASSIFICATION OF MARKET? ANSWER: MARKET A market can be defined as a place where any type of trade takes place. Markets are dependent on two major participants buyers and sellers. CLASSIFICATION OF MARKET 1. Classification of Market On The Basis Of i. Consumer Market Geographical Area ii. Industrial Market i. Local Market 6. Classification Of Market On The Basis Of ii. Regional Market Competition iii. National Market i. Monopoly Market iv. International Or Global Market ii. Perfect Market 2. Classification Of Market On The Basis Of iii. Imperfect Market time 7. Classification Of Market On The Basis Of i. Very Short-term Market Seller's Position ii. Short-term Market i. Primary Market iii. Long-term Market ii. Secondary Market iv. Very long-term Market Or Secular Market iii. Terminal Market 3. Classification of Market On The Basis Of Volume 8. Classification Of Market On The Basis Of of Business Nature Of Transaction i. Wholesale Market i. Spot Market ii Retail Market ii. Future Market 4. Classification of Market On The Basis Of 9. Classification Of Market On The Basis Of Nature of Product Control i. Commodity Market i. Regulated Market ii. Financial Market ii. Non-regulated Market 5. Classification of Market On The Basis Of Consumption 2. WHAT IS MARKETING MIX? EXPLAIN DIFFERENT ELEMENTS OR COMPONENTS OF MARKETING MIX? ANSWER: MARKETING MIX The marketing mix is The set of controllable tactical marketing tools product, price, place, and promotion that the firm blends to produce the response it wants in the target market. ELEMENTS OR COMPONENTS OF MARKETING MIX 4 Ps = Product , Price , Promotion and place 1) Product mix:- product is the starting point of seller. The product mix has the following all marketing activities. The product dimension:mix has the following dimensions:a) Pricing policies a) Product innovation and invention. b) Cost of production and profit margin b) Product features ie, shape, size, weight, design, c) Determination of per unit price. color, quality, standard etc.. d) Discount, rebates and level of margins. c) Product planning and development. e) Credit policy d) Product range and mix f) Term delivery and payment e) Packing and labeling of product. g) Installment and higher purchase. f) Brand name and trade mark. After sales service 3) Promotion mix:- promotion means and warranty. communication with customers to stimulate them 2) Price mix:- price in decision is important from to buy goods. The nature of promotion mix is the point of view of the producer, consumer and determined by the marketing environment.

there are various dimensions of promotion mix are:a) Advertising and publicity b) Personal selling techniques c) Sales promotion measures d) Public relation techniques e) Display of goods for sales promotion f) Trade fare and exhibitions g) After sales services 4) Place mix:- place mix is also known as distribution mix. It is concerned with making the

goods available to the customers at the places through a chain of marketing channels such as whole sellers, retailers middlemen and agents . the place mix has the following directions:a) Type of intermediaries. b) Different marketing channels c) Physical distribution system d) Inventory control e) Areas to be covered f) Channel remuneration and incentives g) Dealer relations.

3. Write a note on Micro-Marketing Environment ANSWER: 1. Micro Environmental The microenvironment consists of five components. The first is the organizations internal environmentits several departments and management levelsas it affects marketing managements decision making. a. The Company Consumer markets b. Suppliers Business markets c. Marketing Intermediaries Reseller markets Resellers Government markets Physical distribution firms International markets Marketing service agencies e. Competitors Financial intermediaries f. Publics d. Customers 4. Distinguish between Goods & Services? ANSWER:

5. State the functions of Marketing? ANSWER: THE NINE FUNCTIONS OF MARKETING The functions are: 1. Buying 2. Selling 3. Financing 4. Storage 5. Transportation 6. Processing 7. Risk-Taking 8. Market Information

9. Grading and Standardizing. 6. Explain the Characteristics of marketing Environment? ANSWER: Marketing Environment is complex Marketing environment is dynamic Marketing environment is multi-faceted Marketing environment has a far-reaching impact 7. Explain the terms: Perceived Value and Customer satisfaction ANSWER: Perceived Value The customers evaluation of the difference between benefits and costs. Customers often do not judge values and costs accurately or objectively. Customer Satisfaction Products perceived performance relative to customers expectations. 8. Explain Impact of Drives for adopting marketing to the new economy ANSWER: 1. 2. 3. 4. 5. 6. 7. 8. 9. Organize by customer segments Focus on customer lifetime value Look also at marketing scorecard Focus on stakeholders Everyone does the marketing Build brands through behavior Focus on customer retention and growth Measure customer satisfaction and retention rate Underpromise, overdeliver MARKS: 3X5 = 15

II. ANSWER ALL THE QUESTIONS

9. A). DEFINE MARKETING AND EXPLAIN THE NATURE AND SCOPE OF MARKETING ANSWER: Definition: A social and managerial process by which individuals and groups obtain what they need and want through creating exchanging products and value with others NATURE OF MARKETING: SCOPE OF MARKETING 1) Marketing is a customer focus Places 2) Marketing must deliver value Properties 3) Marketing is business Organizations 4) Marketing is surrounded by customer need Information 5) Marketing is a part of total environment Ideas 6) Marketing systems effect companies strategies Goods 7) Marketing has a discipline Services Experiences 8) Marketing creates mutual beneficial relationship Events 9) Universal function Persons OR B). BRIEFLY EXPLAIN THE VARIOUS CONCEPTS OF MARKETING. ANSWER: Ans: There of five concepts of marketing. Exchange concept Production concept Product concept

 Sales concept Marketing concept 10. A). DISTINGUISH BETWEEN SELLING & MARKETING CONCEPT. ANSWER: SELLING Selling starts with the seller& the needs of the seller Seeks to quickly convert products into cash. Seller is the centre of business universe Views Business as a goods producing process Seller preference determines the formulation of marketing mix. Selling is product oriented Sellers motives dominate marketing communication

MARKETING Marketing starts with the buyer & needs of buyer Seeks to convert customer needs into products Buyer is the centre of the business universe Views businesses as a customer satisfying process. Buyer determines the shape marketing mix should take. Marketing is customer oriented. Marketing communication is looked upon as a tool for communicating the benefits / satisfactions provided by the product.

OR B). EXPLAIN THE OPPORTUNITIES AND CHALLENGES OF MARKETING ANSWER:

11. A). EXPLAINTHE ROLE OF MARKETING MANAGER IN MARKETING ANSWER: Marketing manager Conceptualizing New Role of Marketing Manager in Channel Development product Direct Marketing Product Innovation Sales and marketing through middlemen Product designing Sales and marketing through the internet Conceptualizing the New product Sales and marketing through company owned Understanding the pulse of the Market retail outlet Exploring the need of the customers Strategy for domestic market or for the foreign market Understanding the market dynamism, Decision of two tier or three tier ,middleman changing Taste and preferences of Customers network Marketing through networking Role of Marketing Manager Determining the Price Role of Marketing Manager Promotion of a Cost of new product Product Price Fixation New product launching strategy Offering Discounts Discounts, offer and timing of launching Price comparison Branding Sales estimation Advertising Profit estimation Publicity Market Penetration / Price skimming Sales promotion

Positioning and Differentiation OR B). WHAT IS MARKETING ENVIRONMENT? EXPLAIN VARIOUS COMPONENTS OF MACRO-MARKETING ENVIRONMENT? ANSWER: Purpose of marketing environment analysis:(a) To know where the environment is leading, to observe & size up the relevant events & trends in the environment. (b) Strategic response to environment is possible only with proper environment analysis. (c) To assess the scope of various opportunities & shortlist those that can favorably impact the business. (d) To help secure the right fit between the environment & the business unit which is the crux of marketing. The marketing environment consist of the following factors :(1) Demographic (2) Socio-cultural Environment (5) Natural Environment Culture ,Social Class Natural Resources (3) Economic Environment Ecology (a) General Economic conditions Climate (b) Economic conditions of different segments of the (6) Technology Environment population, their (a) Options Available in Technology disposable income, purchasing power etc. (b) Govts Approach in Respect of Technology (c) Rate of growth of the economy, rate of growth of (c) Technology Selection each sector of theeconomy (7) Legal Environment (d) Income, prices & consumption expenditure (a) Corporate affairs (e) Credit availability & interest rates (b) Consumers protection (f) Inflation rate (c) Employee protection (g) Foreign exchange reserves (d) Sectoral protection (h) Exchange rates (e) Corporate protection (i) Tax rates (f) Protection of society (j) Behaviour of capital market (g) Regulations on products, prices & distribution (4)Political Environment (h) Control on trade practices (i) Protecting national firms against foreign firms