MARKETING MANAGEMENT 102 EXAMINATION
Q.1.What are the features of a good brand name?
Ans. Brand names should be chosen carefully since the name conveys a lot of
information to a customer.
The following list contains considerations that should be made before
making a choice of brand name:
(i) Evoke positive associations
(ii) Be easy to pronounce and remember
(iii) Suggest product benefits
(iv) Be distinctive
(v) Use numerals when emphasizing technological features
(vi) Not infringe existing registered brand name
Q.2. Explain the importance of CRM.
Ans. The importance of CRM is mentioned in the following points:
i. Increasing Customer Satisfaction – It refers to fulfilling the desires of customers by
providing customized products to maintain the loyalty of customers.
ii. Helping in Customer Selection and Retention – It refers to finding out profitable
customers and making reward programs to retain the customers for a longer period of
time.
iii. Providing Customer Service – It refers to exploring the scope of enhancing the
service delivery system of the organization.
,iv. Facilitating Sales Force Automation (SFA) – It refers to automating the sales
functions and sales force management of the organization.
Q.3. What are the benefits of franchising?
Ans. For the franchiser, franchising is beneficial as discussed below:
(i) It allows the franchiser to expand the distribution system in the shortest possible
time.
(ii) The franchiser is able to expand the business with little extra cost since the
franchisee provides the capital for the outlet. The franchisee also pays a lump sum to
the franchiser.
(iii) It enables the franchiser to increase his goodwill and reputation by expanding his
network. The franchisees have a large financial stake in the business as they have
invested huge amounts for the retail outlet and licence fee. This ensures the surviv al
and success of the business and popularity of the franchiser’s name.
(iv) The franchiser gains wider acceptance of its brand name through the franchisees.
(v) The franchiser gets feedback about the product popularity and specific needs and
preferences of the local customers from the franchisees.
The benefits of franchising to the franchisee are as follows:
(i) The franchisee can use the name and trade mark of the franchiser for attracting
customers and increase his sales.
(ii) The franchisee can get advice and assistance of the franchiser in training his staff,
store layout, publicity, etc.
(iii) The franchiser ensures a high degree of quality control. This helps the franchisee to
satisfy his customers by offering quality products.
(iv) The franchiser makes huge investments in product innovation and research and
development. The benefits of these investments are passed on to the franchisee in the
form of improved products.
,(v) The products are well advertised in various media and are known to the people. It is
easier for the franchisee to promote the sale of such products.
(vi) There are greater chances of success
Q.4. Explain the functions of retailers.
Ans. Retail stores or retailers have strategic importance as a channel of distribution.
They perform the following functions:
1. Retailers purchase and assemble goods from a large number of wholesalers and
manufacturers to meet the needs of the ultimate consumers.
2. Retailers keep a large number of products of different varieties in stock to sell them
to the customers whenever they require. Thus, they create time utility.
3. Retailers perform transportation function by carrying the goods from the wholesalers
and handing them over to the ultimate consumers. Sometimes, they also provide free
home delivery of products to the customers. Retailers sell the goods on credit to the
customers and they increase their short-term) purchasing power. In this process, they
undertake the risk of bad debts.
4. Retailers educate the customers by informing them about the availability and
diverseness of new products.
5. Retailers act as agents of customers. They communicate the needs or demands of
their customers to the wholesalers and manufacturers. Thus, they help the customers in
getting the want-satisfying products and help the manufacturers in purchasing the
products which are desired by the customers.
Q.5. What are the advantages of E-Commerce?
Ans. (i) It is easy to purchase products from home. It saves time and introduces
consumers to a larger selection of merchandise.
(ii) Access new markets and extend service offerings to customers.
(iii) Business can be extended across the boundaries of one country.
, (iv) Reduce the cost of marketing and promotion.
(v) Improve customer service.
(vi) Strengthen relationships with stake holders and suppliers.
(vii) Streamline business processes and administrative functions.
(viii) Customers can compare products and prices easily by browsing through mail
catalogs and on-line shopping services, then order goods for themselves or others.
(ix) Business customers also benefit by learning about available products and services
without tying up time meeting with salespeople.
(x) Direct marketing can also be timed to reach prospects at the right moment. The
material sent by direct marketers receives higher leadership because it is sent to more
interested prospects.
Q.6. Differentiate between price and non-price competition.
Ans. The marketing strategy of an organization is influenced by competition to a great
extent. The pricing of a product is affected by the competitive situation present in the
business environment.
Price Competition
It exists when marketers compete on the basis of price. In price competition, the
marketers develop different price strategies to beat the competition. They generally set
a same or low price of a product than that of the competitors to gain the market shar e.
Generally, the prices are changed to cover the costs or increase the demand. For
instance, Coca-Cola and Pepsi are close competitors, thus, they often engage in price
wars. The major disadvantage of price competition is that the competitors have
flexibility to change the prices of products.
Non-Price Competition:
Q.1.What are the features of a good brand name?
Ans. Brand names should be chosen carefully since the name conveys a lot of
information to a customer.
The following list contains considerations that should be made before
making a choice of brand name:
(i) Evoke positive associations
(ii) Be easy to pronounce and remember
(iii) Suggest product benefits
(iv) Be distinctive
(v) Use numerals when emphasizing technological features
(vi) Not infringe existing registered brand name
Q.2. Explain the importance of CRM.
Ans. The importance of CRM is mentioned in the following points:
i. Increasing Customer Satisfaction – It refers to fulfilling the desires of customers by
providing customized products to maintain the loyalty of customers.
ii. Helping in Customer Selection and Retention – It refers to finding out profitable
customers and making reward programs to retain the customers for a longer period of
time.
iii. Providing Customer Service – It refers to exploring the scope of enhancing the
service delivery system of the organization.
,iv. Facilitating Sales Force Automation (SFA) – It refers to automating the sales
functions and sales force management of the organization.
Q.3. What are the benefits of franchising?
Ans. For the franchiser, franchising is beneficial as discussed below:
(i) It allows the franchiser to expand the distribution system in the shortest possible
time.
(ii) The franchiser is able to expand the business with little extra cost since the
franchisee provides the capital for the outlet. The franchisee also pays a lump sum to
the franchiser.
(iii) It enables the franchiser to increase his goodwill and reputation by expanding his
network. The franchisees have a large financial stake in the business as they have
invested huge amounts for the retail outlet and licence fee. This ensures the surviv al
and success of the business and popularity of the franchiser’s name.
(iv) The franchiser gains wider acceptance of its brand name through the franchisees.
(v) The franchiser gets feedback about the product popularity and specific needs and
preferences of the local customers from the franchisees.
The benefits of franchising to the franchisee are as follows:
(i) The franchisee can use the name and trade mark of the franchiser for attracting
customers and increase his sales.
(ii) The franchisee can get advice and assistance of the franchiser in training his staff,
store layout, publicity, etc.
(iii) The franchiser ensures a high degree of quality control. This helps the franchisee to
satisfy his customers by offering quality products.
(iv) The franchiser makes huge investments in product innovation and research and
development. The benefits of these investments are passed on to the franchisee in the
form of improved products.
,(v) The products are well advertised in various media and are known to the people. It is
easier for the franchisee to promote the sale of such products.
(vi) There are greater chances of success
Q.4. Explain the functions of retailers.
Ans. Retail stores or retailers have strategic importance as a channel of distribution.
They perform the following functions:
1. Retailers purchase and assemble goods from a large number of wholesalers and
manufacturers to meet the needs of the ultimate consumers.
2. Retailers keep a large number of products of different varieties in stock to sell them
to the customers whenever they require. Thus, they create time utility.
3. Retailers perform transportation function by carrying the goods from the wholesalers
and handing them over to the ultimate consumers. Sometimes, they also provide free
home delivery of products to the customers. Retailers sell the goods on credit to the
customers and they increase their short-term) purchasing power. In this process, they
undertake the risk of bad debts.
4. Retailers educate the customers by informing them about the availability and
diverseness of new products.
5. Retailers act as agents of customers. They communicate the needs or demands of
their customers to the wholesalers and manufacturers. Thus, they help the customers in
getting the want-satisfying products and help the manufacturers in purchasing the
products which are desired by the customers.
Q.5. What are the advantages of E-Commerce?
Ans. (i) It is easy to purchase products from home. It saves time and introduces
consumers to a larger selection of merchandise.
(ii) Access new markets and extend service offerings to customers.
(iii) Business can be extended across the boundaries of one country.
, (iv) Reduce the cost of marketing and promotion.
(v) Improve customer service.
(vi) Strengthen relationships with stake holders and suppliers.
(vii) Streamline business processes and administrative functions.
(viii) Customers can compare products and prices easily by browsing through mail
catalogs and on-line shopping services, then order goods for themselves or others.
(ix) Business customers also benefit by learning about available products and services
without tying up time meeting with salespeople.
(x) Direct marketing can also be timed to reach prospects at the right moment. The
material sent by direct marketers receives higher leadership because it is sent to more
interested prospects.
Q.6. Differentiate between price and non-price competition.
Ans. The marketing strategy of an organization is influenced by competition to a great
extent. The pricing of a product is affected by the competitive situation present in the
business environment.
Price Competition
It exists when marketers compete on the basis of price. In price competition, the
marketers develop different price strategies to beat the competition. They generally set
a same or low price of a product than that of the competitors to gain the market shar e.
Generally, the prices are changed to cover the costs or increase the demand. For
instance, Coca-Cola and Pepsi are close competitors, thus, they often engage in price
wars. The major disadvantage of price competition is that the competitors have
flexibility to change the prices of products.
Non-Price Competition:
