Introduction to Marketing Management

Multiple choice questions which Descriptive Questions

- Pragya Kewlani

1. Due to the advent of and , it has become a virtual world

and marketing happens more in space than in a geographical place.
a. Internet, E-commerce technology
b. Social media, digital marketing
c. Internet, Social media
d. Digital marketing, E-commerce

2. A cluster consisting of marketers, intermediaries, after sales and service providers, resellers,
financiers and insurers can be called a .
a. Betamarket
b. Gigamarket
c. Metamarket
d. Intermediaries

3. A is defined as a market where output of one firm goes either as raw

material, goods in process or consumables of another industry.
a. Industrial Market
b. Business Market
c. Nonprofit market
d. Local market

4. In business markets, the demand pattern is that of .

a. Derived demand
b. Latent Demand
c. Declining demand
d. Irregular demand

5. The concept holds the consumers will prefer products’ that are widely
available and inexpensive.
a. Product
b. Selling
c. Production
d. Marketing

6. emerged as a process of exchange during prehistoric period.

a. Barter System
b. Paper money Exchange
c. Coins trading
d. Gold

7. The whole business world got divided into the world of and .
a. Capitalists, communists
b. Opportunist, Profit Makers
c. Communists, opportunists
d. Capitalists, profit makers

8. propounded the principle of the invisible hand, where, in the process

of making profit, the enterprise was expected to contribute a part of its profit to the society.
a. Karl Marx
 b. Philip Kotler
c. Mazur
d. Adam Smith

9. Who propounded the ‘ten points agenda’?

a. Karl Marx
b. Philip Kotler
c. Mazur
d. Adam Smith

10. Marketable and reliable service commands a in the market.

a. Freemium
b. Free trial
c. Premium
d. Subscription

11. The major types of orientations include , cost, capacity, erratic, technology and
marketing.
a. Production
b. Price
c. Product
d. Publicity

12. A marketing-oriented company makes profit by to satisfy more effectively

the customer needs within the constraints of its resources and skill limitations.
a. Identifying Threats
b. Minimizing Losses
c. Strengthening Strengths
d. Creating Opportunities

13. Marketing orientation is based on a clear understanding of consumers needs and wants.
a. Budget and lifestyle
b. Latest trends and styles
c. Needs and wants
d. Demand and supply

Descriptive Answers.
1. Define Marketing. Explain its various concepts.
a. Marketing is defined as, “development and distribution of goods and services for chosen
consumer segments by which profitability is achieved with a goal of customer satisfaction.
Marketing activities begin with new product concepts and designs are analyzed and
developed to meet specific consumer needs. This elaborate definition of marketing
includes many other organizational activities other than mere distribution function”.
b. Concepts of Marketing: - Business enterprises conduct their marketing activity around five
concepts. They are as follows:
i. Production Concept:
 Consumer preferred goods that are widely available inexpensive.
 Based on the idea the more the production, the more is the profit.
 Consumers tends to avail those goods and services that are widely
available and are of low cost.
 Viable strategy to expand market with the concept that consumers prefer
goods that are priced low and widely available.
ii. Product Concept:
 Consumers favor those products that offer attributes like quality,
performance and other innovative features.
  Main focus is towards the development of the existing line of products
over a period.
 Also known as “Technology Push Model”.
 The problem with this orientation is that managers forget to read the
customer’s mind and launch products based on their own technological
research and scientific innovations
iii. Selling Concept:
 It proposes that customers, be they individuals or organizations will not
buy enough of the firm’s products unless they are persuaded to do so
through the selling effort.
 Hence selling and promotion is undertaken in order to achieve market
success.

Starting Point Focus Means Ends

Factory Products Selling and Profit through

promotion sales volume.

 This approach is applicable in the cases of unsought for goods like life
insurance, vacuum cleaner, fire-fighting equipments including fire
extinguishers.
 In a modern marketing situation, the buyer has a basket to choose from
and is also exposed to a high decibel of advertising.
 Effectiveness of such an orientation comes down as more and more
mass media is used for the purpose of brand communication.
 Use of this concept breeds the misconception that marketing is all about
selling.
 The problem with this approach is the assumption that the customer
will certainly buy the product after persuasion and if dissatisfied will not
complain.
 In reality this does not happen and companies pursuing this concept
often fail in business.
iv. Marketing Concept:
Marketing concept can be explained with the following diagram.

Target Market Customer Integrated Profit through

needs Marketing customer satisfaction

 Instead of spending on a mass, undifferentiated market, they

prefer looking for specific product markets to which their product
will best match and accordingly design a marketing program that
suits the taste of this target segment.
 The next important act is the understanding of the need of the
customer so that we can design and offer a suitable product or
service for higher customer satisfaction.
  It is important to understand and act upon the need of the
customer because the effort to keep a satisfied customer is
almost one fifth of the effort expended to get a new customer.
 The whole organization has to be integrated to this mantra of
customer satisfaction. So, business needs an integrated
approach.
 The integration has to start at the marketing department level
where various key marketing functions like product design,
distribution channel selection, advertising, sales promotion,
customer service and marketing research need to be integrated
with the understanding of common marketing goals.
 Profitability is now a by-product that comes out of efforts and
strategies followed by firms in creating superior product value
and higher customer satisfaction.

v. Societal Marketing Concept-

 Enterprise’s task is to determine the needs, wants and intentions
of the target market and to deliver the expected satisfaction more
effectively and efficiently than the competitors in a way to
preserve or enhance the consumer’s and society’s well-being.
 It combines the best elements of marketing to bring social change
in an integrated planning and action framework with the
utilization of communication technology and marketing
techniques.
 Marketing must be a socially responsible or accountable activity.
 The societal concept is an extension of marketing concept. To
cover the society in addition to the consumers.
vi. Relationship Marketing concept:
 It posits marketing as a business function which is affected by
continuity of time and thus entrails the need to forge strong
relationships with the customer.
 This help to track and analyze the evolution of a consumer’s
requirements over time.
 Customer profile, buying patterns, and history of contacts are
stored as a data base under this concept.
 The database of the customers works as a paradigm for the
organization to learn and repeat best practices.
vii. Holistic Concept of Marketing:
 Is that function of marketing that requires a broad canvas with
multiple perspectives to embrace the interplay of factors active in
the economy, society and market.
 The concept is defined by Philip Kotler which is based on
development, design and implementation of marketing programs,
processes and activities that recognize the breadth and
interdependencies.
 Attempts to develop and maintain multiple perspectives on the
company’s commercial activities.
 This concept of marketing aligns with the concept of sustainable
development that seeks to embrace economic, environmental
and social factors.
2. Differentiate between Product, Production, Selling and Marketing
S.no Basis Product Production Selling Marketing
1. Companies Developing On the idea Manufacturing Companies
Focus superior that the more the product first
 products and we make, the first then determines
improving the more decides to sell the customer’s
existing line profitable we it needs and
over the become then decides
period of time on how to
deliver a
product that
satisfy these
wants
2. Management Towards Number of Management Profit Oriented
Orientation technological units is sales volume
research and produced oriented
scientific
research
3. Planning Long-term Neither long Short term Long term
oriented in term or short oriented in oriented in
terms of 4 P’s term, it terms of terms of new
-Positioning entirely today’s products,
-Pricing depends on products and tomorrow’s
-Packaging the markets market and
-Placement company’s future growth.
philosophy to
make the
products
widely
accessible to
the buyers at
low priced
budget
4. Stress Stresses needs Stresses Stresses needs Stresses needs
on quality of needs of own of sellers and wants of
products. company’s buyers
expertise in
producing
products
5. Business Views business Views Views business Views business
Condition as coming business as a goods as consumer
out with new as goods producing satisfying
innovations producing process process
and and achieving
technological maximum
process profitability
process

6. Emphasis Quality On mass On staying Innovation in

generation and production with existing every sphere,
quality and technology on providing
retention reducing and better value to
through costs reducing costs the customer
innovations by adopting
and a superior
technological technology
efforts for
attracting
customers
 7. Departments R&D Production Different All
department departments departments departments
works in close work in work in highly of the business
liaison with different separate operate in an
field factory water tight integrated
personnel, outlets compartments. manner, the
value aids at different sole
from locations purpose being
government generation
or private of customer
institutions satisfaction.
relating to
their
field
8. Determination Cost Price Cost Consumer
is Cost and determines determines determines determines
price price cost price price; price
determines
cost
9. Customer Product views Production Selling views Marketing
eccentric customers as ignores customers as views
last link in customers for the last link in the customer
the business being prime the business as the very
as it aligns purpose. purpose of the
its innovative business
quality
products
to respective
target
audience

3. Write short note on various types of offerings.

 • Produced to satify consumer wants
Goods • Study is done to satisfy consumer needs and wants
• These needs and wants motivates the consumer to
purchase goods.

• As the economies advances, a proportion of their activities

are forcused towards the growth of services. As of today
Intangible the US economy consist of 70-30 services-to-goods
activities.
services • Many market offerings consist of a avariable mix of goods
and services. Services may include airlines, hotels,
accountants, lawyers, engineers etc.

• Cities, states, regions, and nations compete to attract

tourists, factories, company headquarters and new
residents.
Places • Place marketers include economic development
specialists, rela estate agents commercial banks, local
business associates, and advertising and public relation
agencies.

• Celebrity Marketing has become a major business.

• Artists, musicians, CEO's, physicians, high profile lawyers,
Persons and other financiers, and other professionals draw help
from celebrity marketers.

• Marketers promote time-based events, such as olympics,

Events trade shows, sports events, and artistics performance.

• Organisations actively works to build a strong, favourable,

image in the mind of their public.
• Philips, Dutch electronics company advertises with the tag
Corporate line "Let's make things better". The bidy shop and Ben and
organisation Jerry's also gain attention by promoting socila cause.
Universities, museums and performaing arts organisations
boost their public images to compete more successfully for
audience and funds.

• The production, packaging, and distribution of information is

one the society's major industries.
Information/ • Among the marketers of information are school and
Knowledge universities; publishers of encyclopedias, nonfiction books,
and specialised magazines; makers of CDs; and Internet Web
Sities.

• Every market offering has a basic idea at its core. In essence,

Ideas products and services are platforms for delivering some idea
or benefit to satify a core need.
4. Define various types of orientation.

The orientation of a company in marketing terminology refers to the beliefs that lead to
the creation of a mind-set. There is a broad spectrum of orientations that organizations
may be classified into. The major types of orientations include:

 Product Oriented Companies: These companies feel that their product sold in the
market are because of its quality. While there is general acceptance among
practicing managers and marketers that the quality of a product plays a great role
in creating customer satisfaction.

 Cost Oriented Companies: Managers believe that the only way to improve profits
is to reduce marketing and production costs. Cost discipline is an essential way of
exercising control on the organization and allows corrective action to enhance
efficiency but does not always generate value for the customer. However, rampant
cost cutting without consideration of its impact on product quality can take its toll
on the brand and consequently the corporate image of the company.

 Capacity Oriented Companies: Companies believe that the more they make, the
more profitable they are and if they go into the market with more variants,
customers will buy them. This school of thought stresses on the need for high
volumes of production.

 Erratic Oriented Firms: They believe that there is no planning possible as what
happen in future is unknown to everybody. Such orientation is used in times of
economic crises and instability. When market conditions do not reflect clear
demand patterns, it is impossible to forecast. Such circumstances are referred to
as VUCA-volatile, uncertain, complex and ambiguous.

 Marketing Oriented Company: They make profit by creating opportunities to

satisfy more effectively the customer needs within the constraints of its resources
and skill limitations. They focus on customer, requirements of the customers and
solutions that shall create the value for the customer. It is clearly based on the
understanding of customer needs and wants. An organization with marketing
orientation optimizes its resources to offer the best possible value proposition to
its customers.