Answer Key for the Live Leak IBPS SO Mains

Model Question Paper for Marketing

Qs Ans Qs Ans Qs Ans Qs Ans Qs Ans

1. 1 2. 1 3. 5 4. 5 5. 2
6. 1 7. 1 8. 1 9. 2 10. 5
11. 2 12. 4 13. 3 14. 2 15. 5
16. 4 17. 4 18. 5 19. 5 20. 3
21. 5 22. 5 23. 4 24. 4 25. 5
26. 1 27. 5 28. 3 29. 5 30. 1
31. 5 32. 3 33. 3 34. 1 35. 1
36. 6 37. 1 38. 2 39. 2 40. 5
41. 5 42. 3 43. 1 44. 5 45. 4
46. 1 47. 4 48. 4 49. 2 50. 2
51. 3 52. 1 53. 2 54. 4 55. 1
56. 1 57. 3 58. 1 59. 1 60. 5

Solutions:

Q1. The sole aim of marketing is to increase sales. The aim of marketing is to know
and understand the customer so well that the product or service fits him and
sells itself. Ideally, marketing should result in a customer who is ready to buy.
All that should be needed then is to make the product or service available.

Q2. The main motive of market research is to identity people’s (i.e. Consumer’s)
need and incorporate them into the product.
Q3. Predatory pricing (also undercutting) is a risky and dubious pricing
strategy where a product or service is set at a very low price, intending to drive
competitors out of the market, or create barriers to entry for potential new
competitors. Theoretically if competitors or potential competitors cannot sustain
equal or lower prices without losing money, they go out of business or choose not
to enter the business.

Q4. Schedules are generally of two different types, one is general and the other is
specific. The organization decides the kind of schedule that any organization or
program needs.

Q5. The period of sales oriented stage was 1930-1950s as it was the time when a
business approach or philosophy that focuses on promoting sales of whatever a
company makes or supplies, through marketing and sales calls was popular. See
also market orientation and product orientation.

Q6. The interactions between buyers and sellers in a market gives rise to the
mechanism of supply and demand, and consequently, the market price and
quantities. In other words, in a market system the forces and interaction of
supply and demand for each commodity determines what and how much to
produce.

Q7. Marketing mix is the set of tools that the firm uses to pursue its marketing
objectives in the target market (Kotler 1997). Marketing mix- also refers to as
marketers’ controllable tools are the variables which marketers can control in
order to achieve a desired market reactions towards their product offerings at a
particular point in time.

Albeit, many tools do exist for marketing managers to utilize, but few of the most
popular tools are referred to as the 'Ps' of marketing.
 Formerly, we can identify these four(4) marketing controllable 'Ps' as utilized by
most marketing managers to achieving a set marketing objectives; these Ps are
referred to as controllable because they are the variable tools which marketers
can control to achieve a desirable market reactions.

These Ps are

1) Product variable
2) Promotion variable
3) Price variable
4) Place/distribution variable

Q8. Nowadays, producers have an INDIRECT RELATIONSHIP with consumers due

to involvement of various middlemen, agents, distributors etc.

The producer (unlike earlier days) does not hand over the goods to the customer
directly, rather goods travel through a predefined channel (which involves a lot of
people) to final consumers.

Q9. Under monopolistic competition, the market consists of many buyers and
sellers who trade over a range of prices rather than a single market price. A range
of prices occurs because sellers can differentiate their product/service offerings to
buyers. Buyers see differences in seller’s offerings and will pay different prices for
them.

Q10. Marketing people are involved in marketing 10 types of entities: goods,

services, experiences, events, persons, places, properties, organizations,
information and ideas.
Services: As economics advance, a growing proportion of their activities are
focused on the production of services. Services include airlines, hotels and
 maintenance and repair as well as professionals such as accountants, lawyers,
engineers and doctors.

Q11. A convenience good is a consumer item that is widely available and purchased
frequently with minimal effort. Because a convenience good can be found readily,
it does not require the consumer to go through an intensive decision-making
process. Convenience goods, such as newspapers and candy, are different than
specialty goods, such as cars, which are more expensive and often carry a greater
opportunity cost to the consumer.

Some common features:

1. Generally non-durable

2. Purchased at convenient locations.

3. Regular and continuous demands

4. Generally small unit of purchase and low prices

5. Most of them are standardized in prices

6. Sales promotion, schemes etc. are very important.

Q12. A company’s approach to suppliers needs to be a part of its strategic plan since
each and every company is dependent on suppliers. Both good and bad relations
with suppliers directly affect the product quality, availability of repair and
replacement parts.

Q13. Minor decisions (as also mentioned in previous answer) helps in successful
implementation of major decisions. They include plans and strategies that are
formed in support of major decisions.
Q14. Out of the alternatives given it is clear that either the answer is option (2) or
option (5).

Let us see definitions of both, dual and double pricing and find out solution.

DOUBLE PRICING:

The setting of different prices to be charged to different consumers or in different

markets for the same goods or services

DUAL PRICING:

Dual pricing is the practice of setting prices at different levels depending on the
currency used to make the purchase. Dual pricing may be used to accomplish a
variety of goals, such as to gain entry into a foreign market by offering unusually low
prices to buyers using the foreign currency, or as a method of price discrimination

Q15. Customer satisfaction is considered after the sales of the product and is done
through various researches that relates to the product and the market, the
methods of sales and advertising.

So, various researches are conducted to measure the level of customer satisfaction.

Q16. India had a very less number of marketing personnel’s which however has
increased now, but still not satisfactory, major reason being less institutions
providing training and professional education in the field of marketing and due to
lack of planning in the system.
Q17. The consumer buying process studies the process of how consumers end up
buying goods and products. It has different processes and does not include
product perception or what the consumers feel about the product.

Q18. Examples of fabricating goods are like speakers being manufactured for TV
there is no fabrication. Tyres and tubes are exchanged between two industrial
units and there is no fabrication. Pena and ink are complementary to one
another so there is no fabrication between the two industrial units as well.

Q19. A marketing plan is a comprehensive document or blueprint that outlines a

business advertising and marketing efforts for the coming year. It describes
business activities involved in accomplishing specific marketing objectives within
a set time frame.

Q20. A teaser advertisement is one where there is advertising at regular intervals

for any full blown product launch or there is an important event about to begin.
They are used by companies to generate public interest in the product.
Q21. Determination of suitable Production Policy, Regular Supply of Raw Material,
Best Utilization of Machines and Regular availability of Labor are the objectives
to be included in short term objectives.

Q22. Long term financing sources can be in form of any of them:

Share Capital or Equity Shares.

Preference Capital or Preference Shares.

Retained Earnings or Internal Accruals.

Debenture / Bonds.

Term Loans from Financial Institutes, Government, and Commercial Banks.

Venture Funding.

Asset Securitization.
Q23. Market demand is the aggregate of the demands of all potential customers
(market participants) for a specific product over a specific period in a specific
market.

Q24. A cash cow is an SBU that usually generated more cash than it needs to
maintain its market share. It is in a low-growth market, but the product has a
dominant market share. They generate cash far more than that which can be
invested profitably in their own product line. They provide cash to pay large
amounts of company overhead and to invest in other SBUs.

Q25. Middleman stabilizes the prices by buying the goods from the manufacturer
and continuously supplying them in the market, due to the continuous flow of
goods in market, prices are stabilized. If, in any case there occurs a gap in the
supply, the prices tend to change rigorously.

Q26. Viral marketing (or viral advertising) is a marketing technique that uses pre-
existing social networking services and other technologies to produce increases in
brand awareness or to achieve other marketing objectives (such as product sales
or marketing buzz) through self-replicating viral processes, analogous to the
spread of viruses or computer viruses. It can be delivered by word of mouth or
enhanced by the network effects of the Internet and mobile networks.

Q27. Sales Promotion refers to promotion of the products for sale. The different
methods of sales promotion are: giving free gifts to the consumers, giving
discount coupons, reducing the price of products and also providing premium
products.
Q28. A core definition of total quality management (TQM) describes a management
approach to long–term success through customer satisfaction. In a TQM effort,
all members of an organization participate in improving processes, products,
services, and the culture in which they work.

Total Quality Management TQM, also known as total productive maintenance,

describes a management approach to long-term success through customer
satisfaction. In a TQM effort, all members of an organization participate in
improving processes, products, services, and the culture in which they work. The
8 Primary Elements of TQM

Total quality management can be summarized as a management system for a

customer-focused organization that involves all employees in continual
improvement. It uses strategy, data, and effective communications to integrate
the quality discipline into the culture and activities of the organization. Many of
these concepts are present in modern Quality Management Systems, the
successor to TQM.

Q29. Demographic segmentation is market segmentation according to age,

race, religion, gender, family size, ethnicity, lifestyle, income, and education.
Demographics can be segmented into several markets to help an organization
target its consumers more accurately.

Q30. The main aim of sales promotion is to generate more and more profit, which is
possible on focusing the needs of customer preliminary, so no doubt it is targeted
at THE ULTIMATE CONSUMER

Secondly, as the aim is to generate profit, the firm not solely targets on
consumers but also on the MEMBERS OF MARKETING CHANNELS involved, to
 cut down the cost involved in the transportation of goods through these channels
to consumers to maximum possible extent.

Q31. In the narrow sense of the term, marketing involves finding ways to capitalize on
new opportunities within a certain group. To accomplish this, marketers develop a
marketing strategy to attain their goals based on a specified target market. These
markets are typically niche groups with one particular area of interest. For
example, marketers may target a group with a certain net worth, those who live in
a certain area or individuals who own certain property, such as yachts or sports
cars.
The narrow marketing perspective can also be described as a condensed view of the
broader marketing perspective. In the big picture, companies use marketing plans
to develop objectives, strategies and tactics that define the intent, approach and
specific steps to marketing. The narrow perspective is more general and concept-
oriented. The broad perspective begins with a look at objectives, such as creating
brand awareness, strategies, which outline promotional plans, and tactics, which
lay out specific techniques and media for advertising and communication.

Q32. EMI can be a marketing tool when it is very low. Marketing tools are product
development and promotional strategies and actions that a company uses to
develop and promote its products or services. Example of marketing tools are
market research surveys and focus groups.

Q33. Company should avoid four positioning errors:

Under-positioning: Brand seen as just another entry in market place. Buyers
don’t see anything special in it. Example: Babool Tooth paste
Over-positioning: Buyers develop too narrow image of a brand because of which
segment size decrease. Example: Bajaj Eliminator.
Doubtful Positioning: Buyers have confused image of brand due to product
feature/price. Example: Bajaj Caliber
 Confused Positioning: Buyers have confused image of brand due to company
making too many claims and changing brand positioning too frequently.

Q34. Out of the alternatives given MARKETING is synonymous with SELLING.

MARKETING is defined as a social and managerial process by which individuals
and groups obtain what they need and want through creating, offering and
exchanging products of value with others.
The marketing concept emphasizes on the determination of the requirements of
potential customers and supplying products to satisfy their requirements.
SELLING is about delivering the product to the final customer for a value.
So, as by the definitions of both the terms, we can see that the basic idea of both
MARKETING and SELLING is to deliver goods, to the customer.

Q35. Sales forecasting affects production policy. The processes and methods are used
to transform tangible inputs (raw materials, semi-finished goods, subassemblies)
and intangible inputs (ideas, information, knowledge) into goods or services.
Resources are used in this process to create an output which is suitable for use or
has exchange value.

Q36. Michael Porter has identified five forces that determine the intrinsic, long – run
profit attractiveness of a market or market segment: industry competitors,
potential entrant’s substitutes, buyers, and suppliers. The major threats posed by
these forces are:
 Threat of intense segment rivalry
 Threat of new entrants
 Threat of substitute products
 Threat of buyer’s growing bargaining power
 Threat of suppliers’ growing bargaining power
Q37. A sale is a transaction between two parties where the buyer receives goods
(tangible or intangible), services and/or assets in exchange for money. It can also
refer to an agreement between a buyer and seller on the price of a security. A sale
functions as a contract between the buyer and seller of the selected good or service.
Every given alternative involves a TRANSACTION, except ADVERTISMENT.

Q38. The sales force of a marketing department is frequently specialized in some

organizational fashion to effectively implement the company’s strategic marketing
plan. The sales force is specialized in one of the three ways – geographic territory,
product line or customer type. Sometimes a hybrid form is created by combining
the best features of two forms.

Q39. In the given options, marketing related services is implemented only in the Hotel
sector. Marketing related service includes – advertising sales promotion, product
development & testing, marketing research etc. It is adopted in financial &
insurance services (banking leasing brokerage, life and health insurance);
entertainment services (movie channels, cinemas, game parlours) and hospitality
services – hotels & restaurants catering & home delivery.

Q40. (a) Consumer buying behavior trends

Habits or behaviors currently prevalent among consumers of goods or services.
Consumer trends track more than simply what people buy and how much they
spend. Data collected on trends may also include information such as how
consumers use a product and how they communicate about a brand with their
social network.
(b) Size and growth of market
An increase in the demand for a particular product or service over time. Market
growth can be slow if consumers do not adopt a high demand or rapid if consumers
find the product or service useful for the price level. For example, a new technology
 might only be marketable to a small set of consumers, but as the price of the
technology decreases and its usefulness in everyday life increases, more consumers
could increase demand.
The number of individuals in a certain market who are potential buyers and/or
sellers of a product or service. Companies are interested in knowing the market size
before launching a new product or service in an area.
(c) Customer needs and perceptions
A marketing concept that encompasses a customer's impression, awareness and/or
consciousness about a company or its offerings. Customer perception is typically
affected by advertising, reviews, public relations, social media, personal
experiences and other channels.

Q41. Core banking is centralized mode to ease the work and reduction of processing
time.

Q42. Causal research, also called exploratory research. is the investigation of

(research into) cause-and-effect relationships. To determine causality, it is
important to observe variation in the variable assumed to cause the change in the
other variable(s), and then measure the changes in the other variable(s).
Other confounding influences must be controlled for so they don't distort the
results, either by holding them constant in the experimental creation of data, or by
using statistical methods. This type of research is very complex and the researcher
can never be completely certain that there are no other factors influencing the
causal relationship, especially when dealing with people’s attitudes and
motivations. There are often much deeper psychological considerations that even
the respondent may not be aware of.
There are two research methods for exploring the cause-and-effect relationship
between variables:
1. Experimentation (e.g., in a laboratory)
 2. Statistical research.

Q43. It is the duty of the marketing executive to set the marketing objectives. Marketing
executives are aware of the current trends, they are aware of the marketing plan
and most importantly the market hence mostly marketing objectives are set up by
them.

Q44. There are different stages of a product; one of them is the growth stage. During
the growth stage the sales rise rapidly, profits also rise and there is a calculation of
average costs per customer. The growth phase is followed by the decline stage of
the product.

Q45. After Compaq Computers gathers information related to its marketing

environment, it attempts to define current environmental changes, allowing it to
determine possible opportunities and threats facing the company. This process is
called environment analysis.

Q46. Lead generation is a pre-sales function. Lead generation is the initiation of

consumer interest or inquiry into products or services of a business. Leads can be
created for purposes such as list building, e-newsletter list acquisition or for sales
leads.

Q47. Direct ownership across countries is possible only when there is a long term
commitment to any foreign market. It is further helped when the country promises
to give excellent political and economic environment to the company.

Q48. Tele marketing is a method of direct marketing in which a salesperson asks

prospective customers to buy products or services, either over the phone or through
a subsequent face-to-face or web conferencing appointment scheduled during the
 call. Tele marketing can also include recorded sales pitch programm to be played
over the phone via automatic dialing.

Q49. Concentrated marketing is a type of marketing strategy where a firm chooses

to focus its marketing efforts on one particular market segment. It focuses on one
market segment and tries to capture a large share of that segment.
Undifferentiated marketing is a type of strategy when the firm ignores
segment differences and offers its product(s) to the entire marketplace.
Differentiated marketing entails marketing to different market segments,
often crafting different marketing strategies for each segment.
Permission marketing is an approach to selling goods and services in which a
prospect explicitly agrees in advance to receive marketing information. Opt-in e-
mail, where Internet users sign up in advance for information about certain
product categories, is a good example of permission marketing.
According to the definitions given it is clear that, when a company goes after a large
share of one or a few submarkets, it is practicing CONCENTRATED MARKETING.

Q50. Product Life Cycle (PLC) describes the period of time over which an item is
developed, brought to market and eventually removed from the market. The cycle
is broken into four stages: introduction, growth, maturity and decline. The idea of
the product life cycle is used in marketing to decide when it is appropriate to
advertise, reduce prices, explore new markets or create new packaging.
The very basic idea of PLC; Is to trace the lifetime of a product in market and
generate more profit out of it, by establishing a better sales planning and marketing
strategy for the same.

Q51. Selective distortion refers to the way through which information is interpreted in
a way that helps to reinforce the existing beliefs and attitudes. People forming
 different perceptions of the same kind of stimulus are the result of selective
distortion.

Q52. Marketing aims at earning profit through meeting the demands of consumers and
handling the demand incorporate product to the customer. So it is said that
marketing starts and ends with customers.

Q53. The product life cycle concept is a useful conceptual framework within which one
studies how firms could vary their marketing strategies. At different stages in the
product life cycle certain marketing strategies seem to be more appropriate than
others. The life cycle concept also points to the different earning patterns of
products or services at various points in time. It indicates that it is necessary to
have a balanced portfolio of products services in terms of cash generating
capabilities in order to ensure steady sales and profits at all times.

Q54. Marketing ethics is an expression, which is used for principles, values and beliefs
that described desirable and undesirable behavior. Ethics is a set of standards that
define what is wrong or right in decision making.

Q55. Marketing has acquired an important place for the economic development of the
whole country. It has also become a necessity for attaining the object of social
welfare. As a result of it, marketing is considered to be the most important activity
in a business enterprise while at the early stage of development it was considered
to be the last activity.
Successful operation of marketing activities creates, maintains and increases the
demand for goods and services in society. To meet this increased demand the
companies need to increase the level of production in turn raising their income.
This increase, in turn, increases the national income. Further effective marketing
 leads to exports adding to the national income. This is beneficial to the whole
society.

Q56. It is through equalization that we can achieve coordination between the dispersion
factor and concentration. Right results are produced when there is an equality
factor instrumental in between

Q57. This would be classified as primary research. Primary research is obtained

through first hand investigation. This is also original research.

Q58. Producing a new product by using the wastage and scraps is an example of
maximizing utilization of resource. A resource is a source or supply from which
benefit is produced. Typically resources are materials, energy, services, staff,
knowledge or other assets that are transformed to produce benefits and in the
process may be consumed or made unavailable. Benefits of resource utilization may
include increased wealth or wants, proper functioning of a system or enhanced
well-being.

Q59. Ernest Dale, called management (including marketing) a soft science, but not a
PERFECT SCIENCE, as MANAGEMENT is a universal phenomenon (like science),
but its theories and principles may produce different results in different situations
(unlike science). Management theories and principles are situation bound because
of which applicability does not necessarily lead to the same result every time.
So, management rules (including marketing rules) cannot be accurate as the rule
of SCIENCE, and that also why management is called soft science.

Q60. IRDA has several obligations for rural and social sector’s development; all the
listed alternatives are amongst the rules that insurers follow for rural areas
particularly.
Get the Question Paper to this Live Leak Here:-

IBPS SO Mains Live Leak Model Question Paper