MARKETING MANAGEMENT IIBM MBA EXAM ANSWER SHEET

MARKETING MANAGEMENT IIBM MBA EXAM ANSWER SHEET 

Marketing Management

 Section A: Objective Type & Short Questions

Part one:

Multiple choice:

I.“Image building” objectives are common in _____ type of market structure. 

a) Competition

b) Oligopoly

c) Monopoly

d) Monopsony

Ans:  b) Oligopoly

II. The concept of marketing mix was developed by______ 

a) N.H Borden

b) Philip Katter

c) Satanton

d) W.Anderson

Ans: a) N.H Borden

III. Marketing mix consists of ___ 

a) Production recognition

b) Price structure

c) Distribution planning

d) All of these

Ans: d) All of these

IV. The concept of marketing mix involves a deliberate and careful choice of organization, product, price promotion, place strategies and___ 

a) Policies

b) Concept

c) Planning

d) All of these

Ans: d) All of these

V. Operating cost for new system is added into implementation cost and is then divided by gains by improvements in productivity is called 

a) Economic Value Added

b) Analysis Of Benefits

c) Return On Investment

d) Return On Public Offering

Ans: c) Return On Investment

VI. Pricing strategy used to set prices of products that are must be used with main product is called 

a) Optional Product Pricing

b) Product Line Pricing

c) Competitive Pricing

d) Captive Product Pricing

Ans: d) Captive Product Pricing

VII. New product pricing strategy through which companies set lower prices to gain large market share is classified as

a. Optional Product Pricing

b. Skimming Pricing

c. Penetration Pricing

d. Captive Product Pricing

Ans: c. Penetration Pricing

VIII. Company marketing mix that target market segments very broadly is called (1)

a. Mass Marketing

b. Segmented Marketing

c. Niche Marketing

d. Micromarketing

Ans: a. Mass Marketing

IX. What does the term PLC stands for?

a) Product life cycle

b) Production life cycle

c) Product long cycle

d) Production long cycle

Ans: a) Product life cycle

X. Which of the following is not a characteristic of “Market Introduction Stage” in PLC? 

a) Demands has to be created

b) Costs are low

c) Makes no money at this stage

d) Slow sales volume to start

e) There is little or no competition

Ans: b) Costs are low

Part Two:

1.      Name and define the four Ps of the marketing mix? 

The use of a marketing mix is an excellent way to help ensure that ‘putting the right product in the right place,…’ will happen. The marketing mix is a crucial tool to help understand what the product or service can offer and how to plan for a successful product offering. The marketing mix is most commonly executed through the 4 P’s of marketing: Price, Product, Promotion, and Place.

These have been extensively added to and expanded through additional P’s and even a 4C concept. But the 4Ps serve as a great place to start planning for the product or even to evaluate an existing product offering.

THE FOUR P’S

Product

The product is either a tangible good or an intangible service that is seem to meet a specific customer need or demand. All products follow a logical product life cycle and it is vital for marketers to understand and plan for the various stages and their unique challenges. It is key to understand those problems that the product is attempting to solve. The benefits offered by the product and all its features need to be understood and the unique selling proposition of the product need to be studied. In addition, the potential buyers of the product need to be identified and understood.

Price

Price covers the actual amount the end user is expected to pay for a product. How a product is priced will directly affect how it sells. This is linked to what the perceived value of the product is to the customer rather than an objective costing of the product on offer. If a product is priced higher or lower than its perceived value, then it will not sell. This is why it is imperative to understand how a customer sees what you are selling. If there is a positive customer value, than a product may be successfully priced higher than its objective monetary value. Conversely, if a product has little value in the eyes of the consumer, then it may need to be underpriced to sell. Price may also be affected by distribution plans, value chain costs and markups and how competitors price a rival product.

Promotion

The marketing communication strategies and techniques all fall under the promotion heading. These may include advertising, sales promotions, special offers and public relations. Whatever the channel used, it is necessary for it to be suitable for the product, the price and the end user it is being marketed to. It is important to differentiate between marketing and promotion. Promotion is just the communication aspect of the entire marketing function.

Place

Place or placement has to do with how the product will be provided to the customer. Distribution is a key element of placement. The placement strategy will help assess what channel is the most suited to a product. How a product is accessed by the end user also needs to compliment the rest of the product strategy.

2.      Definition of 'Pricing Strategies'? 

The pricing strategies of any product is extremely complex and intense as it is a result of a number of calculations, research work, risk taking ability and understanding of the market and the consumers. The management of the company considers everything before they price a product, this everything includes the segment of the product, the ability of a consumer to pay for the products, the conditions of the market, action of the competitor, the production and the raw material cost or you can say the cost of manufacturing, and of course the margin or the profit margins.

The main aim of the management of every organization is to maximize profits by effectively getting the products of the shelf; let’s define and explain this better.

Pricing strategy is a way of finding a competitive price of a product or a service. This strategy is combined with the other marketing pricing strategies that are the 4P strategy (products, price, place and promotion) economic patterns, competition, market demand and finally product characteristic. This strategy comprises of one of the most significant ingredients of the mix of marketing as it is focused on generating and increasing the revenue for an organization, which ultimately becomes profit making for the company. Understanding the market conditions and the unmet desires of the consumers along with the price that the consumer is willing to pay to fulfill his unmet desires is the ultimate way of gaining success in the pricing strategy of a product or a service.

Do not forget the ultimate goal of the company is to maximize profit being in competition and sustaining the competitive market. However to maximize profits along with retaining your consumer you have to make sure you choose the right pricing strategy. The correct strategy will help to attain objectives as an organization.

3.      What is the role of a Marketing Plan? 

Effective marketing requires a plan—specifically, a marketing plan. Although customers should be at the center of any marketing plan, marketing activities do not operate in a vacuum. Instead, marketing is one function within a larger organization, and it operates within a competitive market environment. To ensure the effectiveness of marketing activities, the marketing plan must take all of these factors into account. Furthermore, once a plan is in place, it serves to guide all the marketing activities that an organization undertakes.

The marketing plan can take a variety of formats. It’s often a formal document that is broadly reviewed to create alignment and support across the organization. It can also be a presentation that explains each of the objectives and strategies. Sometimes the elements of the marketing plan are presented on a company’s internal Web site (or intranet), allowing all employees to access the information and see updates.

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