Unit 8 Marketing Management PYQ’s 26th Nov 2021 Shift 1

The correct answer is – Special events

Key Points

Consumer sales promotion describes marketing strategies that employ incentives to boost sales. The goal of sales promotion is to generate immediate sales as a short-term effect. This operates by encouraging customers to take advantage of incentives and make the buy.

Important Points

Special events and contests:

Event-Based Contests are themed around particular events that take place throughout the year, including holidays or special celebrations.

The best times to hold contests that are event-focused are holidays like Halloween or Valentine’s Day as well as days with significant cultural significance (popular movie releases, Black Friday, etc.).

Additional Information

Discount sales: A discount sales is a price cut provided by the seller in exchange for the buyer paying the vendor in full and on time.

Coupons: You can utilize coupons to get a reduction off the price of an item. For example, a store might offer a coupon with a 10 percent discount off of all bracelets.

Catalogue offers: A catalogue is a list of the items in a collection maintained by one or more documentation centers and organized in accordance with a certain system.

The correct answer is – Airlines

Key Points

Price Sensitivity – The degree to which demand fluctuates as a product’s or service’s price changes is known as price sensitivity. price sensitivity is measured usually with the help of price elasticity of demand, which implies that certain buyers won’t pay more if a lower-priced choice is available, is a typical method for measuring price sensitivity.

Important Points

Understanding of Price Sensitivity –

• Customers who are highly price sensitive are less likely to purchase a product because they believe the seller has unfairly overvalued it and likely to choose another product over the one they were considering buying.
• On the other side, low price sensitivity suggests that customers are prepared to pay the asking amount and possibly even more.

In above question, people will be highly price sensitive for the airlines. When an airline decides to slightly increase the cost of a ticket to travel then customers will switch to a less expensive choice like train transportation.

The correct answer is – Product line

Key Points

Product Hierarchy – A product is categorised into its primary components according to a hierarchy of products. A product will inevitably be connected to or related to another. The hierarchy of the products ranges from basic necessities to specialised goods that meet a range of purposes.The 6 levels of product hierarchy –

• Product Need
• Product Family
• Product Class
• Product Line
• Product Type
• Product Item

Important Points

Product Line -A series of products from the same product class that are comparable in terms of their functions, target market, price range, and distribution methods make up a product line. For example Product line for hair care like shampoo, Hair wax, Hair gel etc.

As above in question, Insurance are example of Product Line. Health Insurance, Life insurance, Medical Insurance, Accidental Insurance etc. are falls in Product Line Level of Product hierarchy.

Additional Information

Product Family – All product classes that can meet the primary demand are included in the product family. For instance, railways , roadways, runways etc.

Product class-A group of items with some functional uniformity might be seen as the product class inside a family. A product category may be thought of as a product class. For instance, there are cars, bicycles, and other vehicles on roads.

Product type- A product type is a collection of products that share one of the various product line configurations, such as luxury vehicles, mid-size cars, etc.

The correct answer is – A, D and E only

Key Points

• Price sensitivity is a measurement that determines how much a product’s price influences a consumer’s decision to buy it.
• Customers who are less sensitive to price changes may be highly driven to purchase the product regardless of price, whereas those who are more sensitive to price changes may be more likely to be put off by price rises.
• If an item or service is expensive, a buyer can decide to choose another brand, especially if there are other possibilities. Often, a consumer may be willing to spend a greater price for a product if it is harder to obtain.
• When businesses determine price sensitivity, they typically report it as a percentage that measures what their company might gain or lose based on particular criteria.

Important Points

Factors that Reduce Customer’s Price Sensitivity

• A customer is less price sensitive if the cost of product is borne by third party.
• A customer is less price sensitive if the cost of the item represents a small part of the expenditure.
• The customer is less likely to be price sensitive if he is not able to judge quality.
• A customer will be less price sensitive if the product’s substitute is not available in the market.
• A customer will be less price sensitive if he cannot switch from one supplier to another even with incurring additional costs.
• A customer will also be less price sensitive if the long-term relationship with the company and its reputation are important and the customer’s focus is on minimizing the cost of the particular transaction.

The correct answer is – B, D and E only

Key Points

Online and social media marketing – Social media marketing often referred to as digital marketing and e-marketing, is the process of using social media—the websites where people create social networks and share information—to strengthen a company’s reputation, boost sales, and direct visitors to its website. Social media marketing gives businesses a method to interact with current consumers and attract new ones.

Important Points

• Rich – The Online and social marketing are rich in media. The Internet was created to send multimedia information, including text, voice, image, and other types of data. As a result, there are numerous ways to communicate information and make a bargain.
• Interactive – The internet is able to achieve interaction and communication between supply and demand through the presentation of product images and the provision of commodities information queries. It is also capable of testing products.
• Up to date – Businesses have more time and space for marketing since the Internet can exchange information by overcoming time and space restrictions. They could offer worldwide marketing at any time and any place. Thus, Businessman able to have up to date details information of the market.

Additional Information

Other Feathers are follows –

• Continue expanding – The majority of Internet users is youthful, middle-class, and has high educational levels due to the expanding global user base. This segment of the group has a huge market, significant purchasing power, and significant influence.
• Integration – Marketing is made more convenient by integration which is the ability of internet marketing to combine key marketing operations, commodities information gathering, customer queries, purchases, payments, and after-sales service as a wholesale line.
• High performance – Computers have the capacity to automatically store massive volumes of data and queries. It carries and transmits significantly more accurate and complete information than any other medium.

The correct answer is – A – lV, B – l, C – lll, D – ll

Key Points

Product’s life cycle- A product’s life cycle is the period of time from when it is first introduced to the market until it is discontinued.

The life cycle of a product goes through four stages: introduction, growth, maturity, and decline.

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Important Points

Introduction: To raise consumer awareness of the product and its advantages, this phase typically involves a sizable investment in advertising and promotion. Value added by Channel Members is High & Market Growth Rate is Low.

Growth: The product enters the growth stage if it is a success. This is characterised by a rise in demand, an expansion in supply, and a rise in production. Value added by Channel Members is High & Market Growth Rate is high.

Maturity: While production and marketing expenses are declining, this is the period that is most profitable. Value added by Channel Members is Low & Market Growth Rate is High.

Decline: A product faces more competition as other businesses try to replicate its success, either by adding new features or lowering pricing. The item can lose market share and start to decline. Value added by Channel Members is Low & Market Growth Rate is Low.

The correct answer is – C, E, B, D, A

Key Points

Market segmentation – Organizing potential customers into groups or segments with comparable demands and responses to marketing actions is referred to as market segmentation in marketing.

Important Points

Following are the steps of market segmentation process –

• Determine the need Based Segmentation
• Identifying the segment
• Which segment is most attractive
• Is segment giving of profit
• Positioning for the segment
• Expanding the segment
• Incorporating the Segmentation into your marketing strategy.

Thus, Correct sequence is

C. Need Based Segmentation——>E. Segment Identification——>B. Segment Attractiveness——>D. Segment Profitability and Segment Positioning——>A. Segment “Acid Test”.

The correct answer is – Both Statement I and Statement II are correct

Key Points

Marketing- Marketing describes the actions a business does to encourage the purchase or sale of a good or service. Advertising, selling, and delivering goods to customers or other firms are all included in marketing.

Important Points

Statement I: The aim of marketing is to make selling superfluous.

Making selling redundant is the goal of marketing, which means that when marketing is done well, selling what you have to offer will be lot simpler. reaching out to someone who is familiar with your company and has your trust is much simpler. Thus, The aim of marketing is to make selling superfluous.

Statement Il: Marketing should result in a customer who is ready to buy

Marketing’s goal is to know and comprehend the consumer so thoroughly that the good or service fits him and sells itself. The ideal outcome of marketing is a customer who is prepared to make a purchase. Then, all that ought to be required is to make the good or service accessible. Thus, Marketing result in a customer who is ready to buy.

Thus, Both Statement I & Statement II are correct.

The correct answer is – B, C, D and E only

Key Points

Integrated Marketing Communication refers to integrating all the methods of brand promotion to promote a particular product or services among customers.

Important Points

Constituents of Integrated Marketing Communication includes:

• The Foundation
• The Corporate Culture
• The Brand Focus
• Consumer Experience
• Communication Tools
• Promotional Tools
• Integration Tools