hnda.lk- Answer Script Fundamentals of Marketing Management Second Year, 2015

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Answer Script Fundamentals of Marketing Management Second Year 2015

Answer Script

Higher National Diploma in Accountancy-

Second Year, Second Semester Examination – 2015

HNDA 2203: Fundamentals of Marketing Management

01.

1. Define “Marketing Management”. (03 Marks)

Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.

2. Briefly explain the Core Marketing Concepts (03 Marks)

Needs, wants, and demands / Products and services /Value, satisfaction and quality/Exchange, transactions, and relationships/Markets

3. Distinguish the selling Concept from the Marketing Concept (04 Marks)

	selling	marketing
Starting point	factory	market
focus	Existing product	Customer needs
Means	Selling and promoting	Integrated Marketing
Profits	Profit through sales volume	Profit through customer satisfaction

4. Briefly explain the four parts of holistic marketing (04 Marks)

There are four main components of holistic marketing:

• Relationship Marketing
• Integrated Marketing
• Internal Marketing

Socially responsible marketing

5. Discuss how companies can react to the Actors in the Micro environment and Forces in the Macro environment. (06 Marks)

02.

1. What is the different between term of “Customer” and “Consumer” (04 Marks)

A consumer is a person who consumes or uses something. A customer is a person who has purchased something. A customer can be a consumer but a consumer does not necessarily need to be a customer.

2. What do you mean by “consumer buying behavior”? (04 Marks)

Consumer buyer behavior refers to the buying behavior of final consumers—individuals and households who buy goods and services for personal consumption

3. List and explain the major factors affecting in the Consumer buying behavior.

Cultural Factors - Buyer’s culture, Buyer’s subculture, Buyer’s social class

Social Factors - Reference groups, Family, Roles and status

Personal Factors - Age and life-cycle stage, Occupation, Economic situation, Lifestyle, Personality and self-concept

Psychological Factors – Motivation, Perception, Learning, Beliefs and attitudes

(6 Marks)

4. Explain the Business buying process with examples.

Problem Recognition, Need description, Product specification, Supplier search, Supplier selection, Purchase routine specification, Performance review (06 Marks)

03.

1. Define the Concept of Marketing Information System(MIS) and list the major components of marketing Information system

A Marketing Information System (MIS) consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.

Internal Record system, Marketing Intelligence, Marketing Research,

Marketing decision support system (MDSS) (04 Marks)

2. Explain the steps in the Marketing Research Process (04 Marks)

1. Define the problem and research objectives

2. Develop the research plan

3. Implement the research plan

4. Interpret and report the findings

3. What are the relationship between market “Segmentation”, “Targeting” and “Positioning”? (06 Marks)

• Segmentation is the process of classifying customers into groups which share some common characteristic
• Targeting involves the process of evaluating each segments attractiveness and selecting one or more segments to enter
• Positioning is arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the mind of the consumer

IV. Identify and describe the major variables for consumer segmentation with examples as necessary. (08 Marks)

(Total 20 Marks)

04.

1. What are the channel functions? (03 Marks)

Information

Promotion, Contact, Matching, Negotiation, Physical Distribution, Financing,

Risk taking

2. Name three pricing strategies and briefly describe them. (03 Marks)

Penetration pricing, Market skimming, value pricing, psychological pricing, going rate pricing, Tender pricing

3. A new product passes through set of stages known as product life cycle. Identify Sales, investment cost, competition, advertising and profit at each stage of the product life cycle. (06 Marks)

Features	Introduction	Growth	Maturity	Decline
Sales	Low	High	High	Low
Investment cost	Very high	High	Low	Low
Competition	Low/ no	High	Very high	Low
Advertising	Very high	High	High	Low
Profit	low	High	High	low

4. Explain the importance of promotion mix elements. (08 Marks)

Advertising

• Reaches large, geographically dispersed audiences, often with high frequency.

Sales Promotion

• Attracts attention, offers strong purchase incentives • Not effective at building long-term brand preferences • Stimulates quick response.

Public Relations

• Building good relationships with the company’s various publics (stakeholders,). To enhance the positive aspects and minimize negative factors related to products.

Personal selling

Most effective tool for building buyers preferences, convictions, and actions. • Personal interaction allows for feedback and adjustments. • Relationship-oriented.

Direct Marketing

• Involves making direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.

05.

I. Name the distinguish characteristics of a Service. (02 Marks)

• Perishability- services cannot be stored.
• Intangibility – can’t touch
• Variability – skill of the supplier is variable
• Inseparability – provider is inseparable from the service
• Non-ownership – customer doesn't have the ownership of the service.

III. State the steps of marketing planning Process. (04 Marks)

IV. Explain the stages in New Product Development Process. (04 Marks)

Idea generation, Idea screening, Concept development and testing, Marketing strategy, Business analysis, Product development, Test marketing, Commercialization

IV. Briefly explain the Service marketing mix variables.

Price, Place, Product, Promotion

People - People represent the business. Service quality is on people education, experience, training, knowledge etc.

Process - The way the service is provided. E.g. order processing, system of delivery, processes for customer complaints.

Physical evidence/ environment - physical presentation of the environment

Design of the building, how they are furnished, cleanness, smell ect. (08 Marks)

06.

Write Short Notes for the followings

1. Product Levels

The CORE product is NOT the tangible physical product. That’s because the core product is the BENEFIT of the product that makes it valuable.

The ACTUAL product is the tangible, physical product.

The AUGMENTED product is the non-physical part of the product. It usually consists of lots of added value. (warranty, the customer service )

2. Packaging and Labeling

Packaging is the physical container or wrapping for a product.

A label is an information tag, wrapper, seal, or imprinted message attached to a product.

3. Consumer Goods classification

Convenience goods

Goods that the consumers usually purchase frequently, immediately and with a minimum of effort and cost. Eg. Soaps, newspapers, food items, sundries, staple hardware items

Shopping goods
The selection & purchasing is a result of a comparison of products based upon their suitability, quality, price, style.

Specialty goods

The specialty goods incur special purchasing efforts and the items possess some special features.

Shopping goods

Customers are willing to invest time and effort to buy shopping products.

4. Product Mix (Product Portfolio or Product Assortment)

The Product mix is the total variety of products a firm sells. Some firms will sell just one product, whilst others will sell a large number of different products. Any company’s product mix has 4 dimensions as Width, Length, Depth, and Consistency.

5. Sales Promotion

Consumer sales promotion is directed at consumers.

Trade Sales promotion is directed at resellers.

(Each 04 Marks)