Principles of Marketing Questions with Answers – 2023 Spring, (BBA/BI/TT/BCIS/BHCM)

Principles of Marketing Questions with Answers

Section “A”

Very Short Answer Questions [10 * 2]

1. What is consumer behavior?
Answer: Consumer behavior is the study of how people make buying decisions. It examines their needs, wants, and influences to help businesses understand what to sell and how to market it effectively.

2. What are the advantages of packaging and labeling?
Answer: The advantages of packaging and labeling are:
Protection: Safeguard products during shipping and handling.
Attraction: Enhances visual appeal to attract customers
Information: Provides essential details like ingredients and usage instructions.
Branding: Establishes brand identity and recognition.

3. What is market penetration pricing?
Answer: Market penetration pricing is a strategy where a company sets a low initial price for a new product to quickly attract customers and gain market share, with the possibility of raising the price later.

4. Explain the push versus pull strategy.
Answer
Push Strategy: Promotes products to retailers or wholesalers to “push” them onto customers, often using discounts or incentives.
Pull Strategy: Creates consumer demand that encourages customers to “pull” the product through the distribution channels by requesting it from a retailer.

5. Identify the process involved in new product development.
Answer: The processes involved in new product development are:
Idea Generation: Brainstorming new product ideas.
Idea Screening: Evaluating and selecting the best ideas.
Concept Development: Creating a detailed product concept.
Market Testing: Testing the product in a small market.
Commercialization: Launching the product to the broader market.

6. Differentiate advertising from personal selling.
Answer: The differences between advertising and personal selling are:
Advertising: A one-way communication method that promotes products to a large audience through media.
Personal Selling: A two-way interaction where a salesperson engages directly with customers to persuade them to buy.

7. Identify the key features of a marketing information system.
Answer: The key features of a marketing information system are:
Data Collection: Gathers information from various sources.
Data Analysis: Processes and analyzes data for insights.
Reporting: Provides reports to aid decision-making.
User-Friendly: Accessible and easy to use for marketers.

8. What is green marketing?
Answer: Green marketing involves promoting products based on their environmental benefits, focusing on sustainability and eco-friendly practices to attract environmentally conscious consumers.

9. List down the necessary requirements for segmenting the market.
Answer: The necessary requirements for segmenting the market are:
Measurable: The segment can be quantified.
Accessible: The segment can be reached through marketing efforts.
Substantial: The segment is large enough to be profitable.
Differentiable: The segment has distinct needs or behaviors.
Actionable: The company can effectively target and serve the segment.

10. What is vertical channel conflict?
Answer: Vertical channel conflict occurs when there is disagreement between different levels of the same distribution channel, such as manufacturers, wholesalers, and retailers, often regarding pricing or product placement.

Section “B”

Descriptive Answer Questions

Attempt any six questions. [6*10]

1. “Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return.” In light of this statement explain the importance of marketing.
2. “Developing a Marketing Information System (MKIS) is becoming extremely important as the market is ever-changing, expanding and competitive.” In light of this statement please elaborate the importance of Marketing Information Systems for businesses.
3. “New product development is the process of developing original products, product improvements, product modifications, and new brands through the firm’s own product development efforts.” Explain the different steps companies take for new product development.
4. “Channel conflict refers to a situation in which the desires of channel members are not sufficiently integrated.” Explain the sources and consequences of channel conflict.
5. Identify the process involved in market segmentation.
6. What is product life cycle? Explain the different stages of product life cycle highlighting promotional strategies.
7. Explain the impact of macro environment on marketing activities.

Section “C”

Case Analysis

Nirala Sweets: Sweetening up to the modern youth

Nirala, an Urdu word implying uniqueness, turned out to be an apt brand name chosen by Mr. Taj Din in 1948 for his small Halwa puri and Methai shop on Fleming Road, Lahore, Pakistan. Over the years, Mr. Taj’s entrepreneurial skills, pride in making products using only the best quality ingredients, and secret recipes created such a name for Nirala sweets in Lahore that it became the official supplier of sweetmeat for state dinners held at the Governor House from 1964. However, despite a good name, Nirala like the rest of the sweetmeat industry in the region remained a small outfit, opening only a couple of more stores in Lahore in the next two decades. By 1994, Mr. Taj’s sons were debating about the wisdom of reinvesting money in the venture, when Faisal Farooq, Mr. Taj’s grandson, and a young, newly minted MBA, took up the challenge to modernize and expand Nirala sweets.

According to Faisal, now the CEO of the company the sweetmeat industry was in bad shape as it had not kept pace with the rest of the world. These shops and their products have images of wrestlers gulping down unhygienic and unhealthy products full of sugar and fat. The research showed only people among 35-40 is purchasing such products but youngsters have moved to Western sophisticated confectionary items like cakes and chocolates. Even for older groups consumption is higher only during occasions. An interesting finding proved that even if people liked consuming sweets they still didn’t not want to be seen buying it. According to Faisal, the industry seems to be dying.

Mr. Faisal went about differentiating Nirala’s offerings from those of competitors and positioned it as a young, hip, and energetic brand targeting the urban youth. An interior designer gave a sophisticated makeover to the retail outlets. Salesmen were trained in courteous customer interaction. The product and packaging was also revamped. The typical size of serving was big and too sweet so it was reduced from 40-45 g to 15-20 g. and the sugar content was reduced too. He even changed the looks of items like phirni and kheer were now packed in modern single-serve cups. The high-quality customized package was 300 percent premium over the regular Nirala prices yet the market liked it. With the Nirala brand under control, Faisal wanted to expand the business but customers in other cities didn’t have the same passion for eating. However, it didn’t deter Faisal by 2008 Nirala had 34 highly successful retail outlets in Pakistan and the Middle East.

Questions:

1. What was the success mantra behind success of Nirala sweets?
2. What is the importance of consumer behavior in the field of marketing according to the above case?