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Marketing Aptitude Study Material – Marketing Mix

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Marketing Aptitude Study Material – Marketing Mix

Marketing Aptitude Study MaterialComputer AwarenessBanking Awareness

Marketing mix is an important concept in modern marketing. It is the crux of marketing process. It refers to the set of actions or tactics, that a company uses to promote its brand or product in the market. It includes almost everything that a firm uses to affect consumers perceptions favourably towards its products or services, so that the consumer and organisational objectives can be achieved.

However, the 4Ps remain the most popular classification in terms of marketing mix. In 1990, Robert F Lauterborn proposed a 4Cs classification, which is a more consumer-oriented version of the 4Ps.

Elements of Marketing Mix

The elements or components of marketing mix may be grouped broadly under the following four heads

  • Product
  • Price
  • Place
  • Promotion

Product

Product refers to the goods and services offered by the organisation for sale to the consumer for a price. In other words, a product is a bundle of utilities consisting of various features and accompanying services.

Product can be broadly classified as follows

Based on Use

Based on use, the product can be classified a

1. Consumer Goods

Products that are purchased for personal consumption by the households or ultimate consumers are known as ‘consumer goods’. Clothing, food, automobiles and jewellery are all examples of consumer goods.  Based on consumer’s buying behaviour, the consumer goods can be farther classified as

  • Convenience Goods Goods which are brought frequently without much planning or shopping effort and are also consumed quick, are called convenience goods.
  • Shopping Goods These are the goods which are purchased less frequently and are used very slowly and choice for these products are made considering its suitability, price, style, quality and products of competitors and substitutes, if any like clothes, shoes, household appliances.
  • Speciality Goods Speciality goods have particularly unique characteristic and brand identification for which a significant group of buyers are willing to put generally special efforts to buy them.

2. Industrial Goods

These goods are meant for use as inputs in production of other products or provision of some service and include raw materials, machinery, components and operating supplies. These are meant for non-personal and commercial use.

Based on Durability

Based on durability, the products can be classified as

  1. Durable Goods
    Durable goods are products which are used for a long period. Examples of such goods are captial goods such as refrigerator, car, washing machine, etc.
  2. Non-durable Goods
    Non-durable goods are products that are normally consumed in one go or last for a few uses. Examples of such products are soap, salt, pickles, sauce, etc.

Based on Tangibility

Based on tangibility, the product can be classified as

  1. Tangible Goods
    Tangible goods have a physical form, that can be touched and seen e.g., groceries, cars, raw materials, machinery, etc.
  2. Intangible Goods refer to services provided to the individual consumer or to the organisational buyers. Medical treatment, postal, banking and insurance services, after sales services, performance and goodwill of product.

Services
These are intangible, inseparable, variable and perishable products that normally require more quality control, supplier credibility, adaptability which satisfies wants and needs. Examples include haircuts, legal advice and appliance repairs.

Price

It is the amount charged for a product or service. In other words, price is the consideration in terms of money paid by consumers for the bundle of benefits, he derives by using the product or service. It is the exchange value of goods and services in terms of money.

Various factors that have to be kept in mind while fixing the price are demand for a product, cost involved, consumers ability to pay, prices charged by competitors for similar products, government restrictions, etc.

Price is the only element in the marketing mix of a firm that generates revenue. Rest of them generate only cost. Price and volume of sales together decide the revenue of any business.

The various factors affecting the pricing policies and decision are

1. Internal Factors

Internal factors are categorized as

  • Organisation Factors The marketing manager’s role is to assist the top management in price determination and administer the pricing within policies laid down by top management.
  • Marketing Mix Price is one of the important element of the marketing mix and therefore must be coordinated with the other elements: product, promotion and distribution.
  • Product Differentiation The price of the product also depends upon the various characteristics offered by the product.
  • Cost of a Product Cost and price of a product are closely related. The most impiortant factor is the cost of production. In deciding to market a product, a firm should also try to decide what prices are realistic, considering current demand and competition in the market.

2. External Factors

External factors are categorized as

  • Product Demand The market demand for a product or service has a big impact on pricing. Since, demand is affected by the potential buyers, their capacity and willingness to pay, their preference, etc are taken into account while fixing the price.
  • Competition The prevailing information about what price the competitors are charging for similar products and what possibilities lay ahead for raising or lowering prices, also effect pricing.
  • Behaviour and Nature of Buyers The nature and behaviour of the consumers and users, for the purchase of a particular product or services, do affect pricing, particularly if their number is large.
  • Government Rules and Regulations The regulatory pressures, anti-price rise and control measure effectively discourage companies from cornering too large a share of the market and controlling prices.

Place

Goods and services are produced to be sold to the consumers. They must be made available to the consumers at a place where they can convenietly make purchase. Place is concerned with various methods of transporting and storing goods and then making available for the customer.

Getting the right product, to the right place, at the right time, involves the distribution system and the choice of distribution method depends on a variety of circumstances.

Making the products available, it involves a chain of individuals and institutions like distributors, wholesalers and retailers who constitute company’s distribution network.

Promotion

Promotion is an important ingredient of marketing mix as it refers to a process of informing, persuading and influencing a consumer to make choice of the product of the company in question.

Promotion is done through personal selling, advertising, publicity and sales promotion. It is done mainly with a view to provide information to prospective consumers about the availability, characteristics and uses of a product.

7Ps of Marketing: In case of services, the producer-oriented model of marketing mix consist of 7Ps.
Including the above 4PS, there are additional 3Ps and they are

  • People People refers to the employees of the organisation who comes in contact with
    the customers in the process of marketing.
  • Process Process refers to the systems and processes followed within organisation.
  • Physical Evidence It refers to all tangible, visible touch point that the customer will encounter before they buy, elements like uniform of employees, signboards, etc.

Factors Affecting Marketing Mix

Factors affecting marketing mix are

1. Uncontrollable Factors

  • Consumer’s behaviour
  • Competitor’s behaviour
  • Intermediaries behaviour
  • Government’s behaviour

2. Controllable Factors

  • Product policy
  • Branding policy
  • Packaging policy
  • Pricing policy
  • Promotion policy
  • Distribution policy
  • Other factors

4Cs of Marketing

4Cs consumer-oriented model of marketing mix are as follows

  1.  Consumer In this model, the products replaced by consumer. Marketers focuses more on consumer satisfaction.
  2. Cost Price is replaced by cost. Here the cost refers to the total cost of owing a product. It includes cost to use the product, cost to change the product and cost of not choosing the competitor’s product.
  3. Communication Promotion is replaced by communication. Communication includes advertising, public relation, personal selling and any method that can be used for proper, timely and accurate communication between marketer and consumer.
  4.  Convenience Place is replaced by convenience. It focuses on ease of buying, convenience in reaching to the store/product and convenience in getting product information.

Tit-Bits

  • AIDS awareness campaign is an example of non-profit marketing
  • Planned cost service means extra profit on the same cost.
  • In case of price sensitive goods, the demand is not price sensitive at all.
  • Product mix means various products designed by the company.

Check Your Skills

1. Which of the following is the element of marketing mix?

  1. Selling
  2. Costing
  3. Creating
  4. Product
  5. All of these

2. Capital goods market deals with

  1. non-durable goods
  2. goods
  3. products
  4. durable goods
  5. All of these

3. Convenience goods are those which

  1. consumed easily
  2. distributed easily
  3. purchase frequently
  4. All of these
  5. None of these

4. Service market is related with

  1. tangible
  2. intangible
  3. Both ‘1’ and ‘2’
  4. All of these
  5. None of these

5. Personal selling is a part of

  1. Promotion
  2. place
  3. price
  4. product
  5. All of these

6. Which of the following is intangible features of a product?

  1. After sale services
  2. Performance of product
  3. Goodwill of product
  4. All of the above
  5. None of the above

7. First ‘P’ of 4Ps is

  1. product
  2. rice
  3. place
  4. romotion
  5. None of these

8. Retailer is a sub-element of

  1. place
  2. product
  3. price
  4. promotion
  5. All of these

9. Distribution is also known as

  1. product
  2. place
  3. promotion
  4. All of these
  5. None of these

10. DSA of a bank is a sub-element of

  1. price mix
  2. distribution mix
  3. promotion mix
  4. All of these
  5. None of these

11. Effective marketing helps in

  1. developing new products
  2. creating a competitive environment
  3. building demand for products
  4. All of the above
  5. None of the above

12. Promotion in marketing means

  1. passing an examination
  2. elevation from one grade to another
  3. selling the products through various means
  4. selling the product in specific areas
  5. None of the above

13. Which among the following can be an example of non-profit marketing?

  1. Disney setting up a park in Hong Kong
  2. Setting up an Ayurvedic massage centre
  3. AIDS awareness campaign
  4. All of the above
  5. None of the above

14. The correct 4Ps of marketing are

  1. product, place, promotion, profit
  2. product, price, place, promotion
  3. product, promotion, price, place
  4. All of the above
  5. None of the above

15. Who among the following is not a part of the marketing mix?

  1. Wholesalers
  2. Retailers
  3. Customers
  4. All of these
  5. None of these

16. Which of the following is the crux of marketing process?

  1. Marketing planning ‘
  2. Marketing mix
  3. Marketing research
  4. Market expansion
  5. Market scanning

17. Which of the following comes under the decisions concerning the products?

  1. Product attributes
  2. Branding and packaging
  3. Product mix
  4. AH of the above
  5. None of the above

18. A product is referred to as

  1. tangible and intangible item
  2. tangible item
  3. anything
  4. All of the above
  5. None of the above

19. A product represents a market’s offering as it is preceived by

  1. present customers
  2. potential customers
  3. company
  4. All of the above
  5. None of the above

20. Which of the following is/are tangible product?

  1. House and TV
  2. Car or scooter
  3. Furniture
  4. All of these
  5. None of these

21. Which of the following is consumable item?

  1. Cold drink or milk
  2. Newspapers
  3. Petrol
  4. Gas
  5. All of these

22. Which of the following is intangible service?

  1. Entertainment
  2. Unsought product
  3. Shopping product
  4. Speciality product
  5. All of the above

23 … is a raw material for a sugar industry.

  1. Machine
  2. Paper
  3. Coal
  4. Sugarcane
  5. None of these

24. The characteristics of product includes

  1. product mix
  2. price
  3. packaging
  4. All of these
  5. None of these

25. … .is bundle of utilities consisting of various features and accompanying services.

  1. Planning and development stage
  2. Cost
  3. Risk
  4. Plan
  5. Product

26. Planned cost service means

  1. costly products
  2. extra profit on the same cost
  3. extra work by seller
  4. All of the above
  5. None of the above

27. In case of prestige goods, the demand is

  1. price sensitive
  2. not price sensitive
  3. not price sensitive till a level
  4. All of the above
  5. None of the above

28. If you are a marketing manager of a firm, you would prefer the customers who are

  1. less price sensitive
  2. more price sensitive
  3. depends upon the marketing mix
  4. All of the above
  5. None of the above

29. Which among the following is a component of customer satisfaction?

  1. Fair price
  2. Profitability
  3. Brand
  4. All of these
  5. None of these

30. With pricing the products are priced below list price for a temporary period to create buying urgency.

  1. preference
  2. by-product
  3. promotional
  4. market penetration
  5. None of these

31. Promotion mix includes

  1. direct marketing
  2. ales team
  3. advertisement
  4. Public relation
  5. All of the above

32. Marketing mix can be changed due to

  1. law and regulation of government
  2. economic policies of respective country’s government
  3. climate
  4. All of the above
  5. None of the above

33. Direct mail includes

  1. letter heads
  2. printed envelops
  3. folder and catalogues
  4. All of the above
  5. None of the above

34. 4Ps of marketing means [SBI Clerk 2008]

  1. primary marketing techniques
  2. person, place, product and promotion
  3. promoting authority
  4. purpose, place, passion and product
  5. None of the above

35. Product mix means [SBI Clerk 2008]

  1. distributing a mix of products
  2. collecting ideas to sell better
  3. satisfying the customers
  4. bundle of product required by the customer
  5. various product designed by the company

36. Non-product selling means [SBI Clerk 2009]

  1. selling variety of products ‘
  2. selling only one products
  3. selling seasonal products
  4. selling service
  5. All of the above

37. The best promotional tool in any marketing is [SBI PO 2010]

  1. e-promotion
  2. public relations
  3. viral marketing
  4. word of mouth publicity
  5. advertisements

38. One of the following is not included in the 4 Ps of marketing. Find the same. [SBI PO 2010]

  1. product
  2. rice
  3. production
  4. Promotion
  5. None of these

39. Customisation is useful for [SBI PO 2011]

  1. designing customer specific products
  2. call centers
  3. public relation
  4. motivating the staff
  5. None of the above

40. One of the following is not included in the 7 Ps of marketing. Find the same [SBI PO 2010]

  1. product
  2. price
  3. production
  4. promotion
  5. None of the above

41. The best promotional tool in any marketing is [SBI PO 2010]

  1. pamphlets
  2. newsletters
  3. word of mouth publicity
  4. egional advertisements
  5. Viral marketing

42. Who has proposed a four ‘cs’ classification of marketing mix?

  1. Philip Kotler
  2.  R F Lauterborn
  3. Albert Frey
  4. William Layzer
  5. None of these

43. A company’s product mix refers to certain

  1. width
  2. ength
  3. depth
  4. consistency
  5. All of these

44. The internal factors affecting the pricing decision is/are

  1. cost of the product
  2. marketing objectives
  3. stage of the product in its life cycle
  4. price elasticity
  5. All of the above

Answer key

Marketing Aptitude Study Material-Marketing Mix-key3

Marketing Aptitude Study Material – Marketing Environment

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Marketing Aptitude Study Material – Marketing Environment

Marketing Aptitude Study MaterialComputer AwarenessBanking Awareness

Marketing environment refers to the factors and forces that affect a firm’s ability to build and maintain successful relationship with customers. Some of the factors are controllable, while some others are uncontrollable.It is the responsibility of the marketing manager to change the company’s policies along with the changing environment.

Nature of Marketing Environment

  • Changes as per environment
  • Communication
  • Challenges
  • Wide market

Characteristics of Marketing Environment

  • Marketing environment plays a vital role while taking decisions related to marketing.
  • Its limit is decided on the basis of geographical factors.
  • There are some non-controllable variables included in marketing environment which effect the potentiality of a company
    and provide new direction to the market.
  • New opportunities and risks always rise in the marketing environment which reinforces marketing experiments and research.
  •  Consumers are divided in homogeneous sections for marketing of a product on the basis of marketing environment.

Components of Marketing Environment

There are following components of marketing environment.

Internal Environment
Forces and actions inside the firm that affect the marketing operation composed of internal stakeholders and the other functional areas within the business organisation are known as internal environment of marketing.

The internal environment includes

  • The human resource department
  • The operations department
  • The accounting and finance department
  • The research and development department

External Environment
The external environment is composed of

  1. Micro environment
  2. Macro environment

Both these types of marketing environment affect each other to some extent.

1. Micro Environment 

The micro environment refers to the forces that close to the company and affect its ability to serve its customers. It includes the company itself, its suppliers, marketing intermediaries, customer markets and public.

Factors affecting micro environment are

  • Company The company aspect of micro environment refers to the internal environment of the company. This includes all departments like management, finance, research and development, purchasing operations and accounting. Each of these departments has an impact on marketing decisions.
  • Marketing Intermediaries Marketing intermediaries refers to resellers, wholesaler physical distribution firms, marketing services agencies and financial intermediaries.
  • Customers There are different type of customer markets like consumer markets, business markets, government markets, international markets and reseller markets. It is different from the reseller market. The reseller market includes business that purchases goods for resell which gives profit.
  • Public The final aspect of the micro environment is public. They may be financial public, media public, government public, citizen action public, local public, general public.

2. Macro Environment

The macro environment refers to all forces that are part of the larger society and affect the micro environment. It includes concepts like demography, economy, natural forces, technology, politics and culture.

Factors affecting macro environment are

  • Demographic Environment Demographic data help in preparing geographical marketing plans, household marketing plans, age and sexwise plans. It influences behaviour of consumers which, in turn, will have direct impact on market place.
    A marketer must communicate with consumers, anticipate problems, respond to complaints and make sure that the firm operates properly and smoothly.
  • Social-Cultural Environment It includes culture, traditions, beliefs, values and life styles of the people.
    Social responsibility has crept into the marketing literature as an alternative to the market concept.
  • Economic Environment The economic environment depends on current income, prices, savings, debt and credit availability, inflation rate, tax rates, etc.
  • Political-Legal Environment The political and leggl environment consists of laws, government agencies and pressure groups that influetice various organisations and individuals.
    The other laws viz labour laws, corporate laws, constitutional laws,’ tax laws, pollution control act, industrial policy also have a great impact on markets.
  • Technological Environment It includes technology selection, change in technology and governments approach in respect of technology.Major new technologies stimulate the economy’s growth rate.
  • Natural Environment It involves the natural resources that are needed as inputs by marketers.In India, many NGOs have continuously fought against indiscriminate mining, use of harmful pesticides, deforestation, introduction of genetically modified foods, pollution of rivers and underground water.

Uncontrollable factors of marketing environment are policy of the firm, organisational structure, indirect environment.

PEST Analysis

PEST analysis describes a framework of macro environmental factors used in the environmental scanning component of strategic management.

  • P — Political factors
  • E — Economic factors
  • S — Socio-Cultural factors
  • T — Technological factors

It is a part of the external analysis, while conducting a strategic analysis or doing market research. It is useful strategic tool for understanding market growth or decline, business position, potential and direction for operations.

SWOT Analysis

The method of SWOT analysis is to take the information from an environmental analysis and separate it into internal issues (strengths and weakness) and external issues (opportunities and threats).

Strength:
It is the characteristic of the business or project that give it an advantage over others.

Weakness:
It is the characteristic that place the business or project at a disadvantage relative to others.

Opportunities:
It is an element that the project could exploit to its advantage.

Threats:
It is an element in the environment that could cause trouble for the business or project. Specifically, SWOT is a basic, straightforward model that assesses what an organisation can and cannot do as well as its potential opportunities and threats.

Tit-Bits

  • In the banking environment, staff is the internal factor and consumer is the external factor.
    Occupation is an element of demographic environment.
  • Labour policy is not a direct factor of the marketing environment.
  • Good competition helps in imporoved customer service. *
  • Marketing onportunities mean scope for marketing.
  • Market space means scope available for selling.
  • Market information means knowledge of related markets.

 

Check your Skills

1. Which is the component of marketing environment?

  1. Legal environment
  2. Political environment
  3. Social and cultural environment
  4. All of the above
  5. None of the above

2. Nature of marketing environment includes

  1. changes as per environment
  2. communication
  3. challenges
  4. wide market
  5. All of these

3. In the banking environment, which among the following is the internal factor?

  1. Customer
  2. Staff
  3. Market
  4. All of these
  5. None of these

4. Consumer of a bank comes under which of the following environment?

  1. External environment
  2. Internal environment
  3. Indirect environment
  4. All of the above
  5. None of the above

5. Which among the following is not a controllable factor of marketing environment?

  1. Policy of the firm
  2. Organisational structure
  3. Indirect environment
  4. All of the above
  5. None of the above

6. Which of the following is not the part of macro environment?

  1. Demographic
  2. Political
  3. Cultural
  4. Suppliers
  5. None of these

7. Which of the following represents the most important reason why firms monitor their demographic environment?

  1. To explain historical trends
  2. To predict political change
  3. To predict the size of market segments
  4. To predict business cycles
  5. All of the above

8. Which of the following is not a part of an organisation’s micro environment?

  1. Customers
  2. Suppliers
  3. Competitors
  4. Government legislation
  5. All of the above

9. Political environment of marketing includes

  1. foreign policy
  2. public welfare and social justice
  3. democracy
  4. All of the above
  5. None of the above

10. Occupation is an element of

  1. demographic environment
  2. socio-cultural environment
  3. economic environment
  4. All of the above
  5. None of the above

11. Which of the following is marketing interme-diaries?

  1. Wholesaler
  2. Advertisement
  3. Government
  4. All of these
  5. None of these

12. In SWOT analysis, ‘S’ stands for

  1. Strengths
  2. Strategies
  3. Smart card
  4. All of these
  5. None of these

13. ‘PEST’ analysis related with

  1. micro environment
  2. macro environment
  3. Both T’ and ‘2’
  4. All of these
  5. None Of these

14. In ‘PEST analysis, ‘P’ represents

  1. Political
  2. Place
  3. Promotion
  4. All of these
  5. None of these

15. Micro environment includes

  1. market demand
  2. consumer
  3. competition
  4. All of the above
  5. None of the above

16. Macro environment includes

  1. demography
  2. econom
  3. technology
  4. All of these
  5. None of these

17. Element of natural environment is

  1. climate
  2. ecology
  3. natural resources
  4. All of these
  5. None of these

18. The marketing environment consists of

  1. micro environment
  2. macro environment
  3. Both ‘1’ and ‘2’
  4. internal environment
  5. external environment

19. The elements of demographic environment is/are

  1. population
  2. age distribution
  3. growth rate
  4. literacy level
  5. All of the above

20. The part of political environment is/are

  1. social organisation
  2. religious organisation
  3. media
  4. form of government
  5. All of the above

21. Which of the following constitutes the socio-cultural environment?

  1. Traditions
  2. Climatic conditions
  3. Government
  4. Geographic conditions
  5. None of the above

22. Which of the following is the vital component of macro environment?

  1. Social environment
  2. Natural environment
  3. Economic environment
  4. Religious environment
  5. None of the above

23. Which of the following constitutes the natural environment?

  1. Natural resources
  2. Ecology
  3. Climate
  4. Geographical distribution
  5. All of the above

24. Which of the following is tool for auditing an organisation and its environment?

  1. SWOT analysis
  2. PEST analysis
  3. Forecasting
  4. Both’ 1’ and ‘2’
  5. None of these

25. Which of the following is an internal factor?

  1. Strengths
  2. Threats
  3. Opportunities
  4. All of these
  5. None of these

26. The PEST factors include

  1. political factors
  2. economic factors
  3. socio-cultural factors
  4. technological factors
  5. All of the above

27. Which of the following is not a part of an organisation’s micro environment?

  1. Government legislation
  2. Suppliers
  3. Competitors
  4. Customers
  5. None of the above

28. Which of the following can be considered to be external to a company’s internal environment?

  1. Finance
  2. Production
  3. Accounting
  4. Marketing intermediaries
  5. None of the above

29. For many marketers, political forces can be

  1. easily ignore
  2. easily influenced
  3. easily recognised
  4. beyond any control
  5. None of the above

30. Micro environment refers to the forces that are close to the and affects its ability to serve its customers.

  1. consumers
  2. marketers
  3. company
  4. environment
  5. None of these

31. Which of the following is not a controllable factor of the marketing environment?

  1. Firm’s policy
  2. Government factor
  3. Marketing policy
  4. All of the above
  5. None of the above

31. Which of the following is not a controllable factor of the marketing environment?

  1. Firm’s policy
  2. Government factor
  3. Marketing policy
  4. All of the above
  5. None of the above

32. Which of the following factor is not a direct factor of the marketing environment?

  1. Labour policy
  2. Selling policy
  3. Marketing policy
  4. AH of the above
  5. None of the above

33. A method of comparing the internal capabilities of an organisation with the demands and challenges of its external environment is referred to as

  1. SHOT analysis
  2. SWOT analysis
  3. stakeholder analysis
  4. shareholder analysis
  5. Both ‘3’ and ‘4’

34. Which of the following is an element of an organisation’s internal environment?

  1. Competitors
  2. Empolyees
  3. Wholesalers
  4. Retailers
  5. Both ‘2’ and ‘3’

35. The Letter T in PEST stands for

  1. Treats
  2. Technological
  3. Teacher
  4. Table
  5. All of the above

36. SWOT analysis does not contain this

  1. strength
  2. weakness
  3. opportunity
  4. talent
  5. All of the above

37. Study of marketing means [BOB PO 2010]

  1. study of economic, political, cultural and technical environment
  2. study of the company’s markets potentials and competition
  3. study of current developing trends
  4. study of employee’s potential
  5. study of sales person’s potential

38. SWOT analysis is the analysis of [BOB PO 2010]

  1. strengths, weaknesses, occupation and threats
  2. strengths, weaknesses, opportunities and threats
  3. sales, weaknesses, occupation and threats
  4. strengths, weaknesses, occupation and tests
  5. None of the above ‘

39. Which of the following is least likely to be associated with a firm’s macro-environment?

  1. Study of the changing birth rate
  2. Analysis of household savings ratios
  3. A new staff incentive scheme
  4. Cultural convergence
  5. None of the above

40. Situation analysis is useful for [PNB Clerk 2010]

  1. SWOT analysis
  2. analysis of sales person’s performances
  3. analysis of capital markets
  4. All of the above
  5. None of the above

41. Good competition helps in [SBI Clerk 2012]

  1. better technology
  2. more market share
  3. rise in profits
  4. bigger branch network
  5. improved customer service

42. Marketing opportunities mean [SBI Clerk 2012]

  1. rope for marketing
  2. proper and effective training
  3. market planning
  4. availability of sales outlets
  5. market data

43. Market space means [SBI Clerk 2012]

  1. place where goods are sold
  2. trade fairs and melas
  3. road shows
  4. scope available for selling
  5. competition

44. Market information means [SBI Clerk 2012, 08; PNB Clerk 2010]

  1. knowledge level of DSAs
  2. information about marketing staff
  3. information regarding share market
  4. knowledge of related markets
  5. latest knowledge about technology progress

45. The internal marketing environment includes

  1. the human resource department
  2. the operations department
  3. the accounting and finance department
  4. the research and development department
  5. All of the above

46. The objective of social marketing concept is

  1. the large market with active target audience
  2. realisation of maximum profits through service of society
  3. customer satisfaction and welfare of customer
  4. Both ‘2’ and ‘3’
  5. None of the above

47. Marketing strategy means

  1. new ideas to true more customers
  2. new methods to retain the customers
  3. new ways to contact the new customers
  4. new marketing techniques
  5. All of the above

 

48. Which of the followings are included in the business legislation of the legal environment?

  1. Corporate affairs
  2. Employee protection
  3. Consumer protection
  4. Sectoral protection
  5. All of the above

Answer key

Marketing Aptitude Study Material-Marketing Environment-ch2

Marketing Aptitude Study Material – Introduction to Marketing

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Marketing Aptitude Study Material – Introduction to Marketing

Marketing Aptitude Study MaterialComputer AwarenessBanking Awareness

Marketing is about identifying and meeting human and social needs. It is the process of communicating the value of a product or service to customers, for selling that product or service. Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others.

Nature of Marketing

  • Marketing is a human activity.
  • Marketing is a social-economic activity.
  • Marketing is consumer-oriented process.
  • The core of marketing is product or service.
  • Marketing is based on exchange.
  • Marketing is both art and science.
  • Marketing is an universal activity.

Characteristics of Marketing

  • Marketing is a socially pervasive process
  • Organisation-wide function
  • Marketing is both a science and art
  • Voluntary exchange of values
  • Achievement of organisational objectives and customer deeds
  • Selection of target markets
  • Beneficial to all the stakeholders

Scope of Marketing

  1. All the decisions related to product like size, color, design, packaging, etc are taken with active participation of marketing department of the company.
  2. All the decisions related to the consumers are taken after having studied the consumers responses with respect to different products, different prices and brands.
  3. All promotional decisions, like choosing type of marketing media, are also being taken under marketing activity.
  4. An effective after sales services is formulated by the marketing manager in order to satisfy the consumer.

Objectives of Marketing

  • Provide satisfaction to customers
  • Increase the demand
  • Provide better quality product to the customers
  • Create goodwill for the organisation
  • Generate profitable sales volume

Difference between Marketing and Selling

Marketing Selling
Marketing includes selling and other activities like various promotional measures, marketing research, after sales services, etc. Selling is confined to persuasion of consumers to buy firm’s goods and services.
It starts with research on consumer needs, wants, preference, likes, dislikes, etc and continues even after the sales have actually taken place. Selling starts after the production process is over and ends with the handing over the money to the seller by the buyer.
Focus is on earning profit through maximisation of customers satisfaction. Focus is on earning profit through maximisation of sales.
Customer’s need is the central point around whom  all marketing activities revolve. All activities revolve around the product that has been produced.
It is an integrated approach to achieve long-term goals like creating, maintaining and retaining the customers. Fragmented approach to achieve short-term gain.
Stress on needs of the buyer. Stress on needs of the seller.
In marketing, the consumer is king. In selling, the product is king.

Concepts of Marketing

Marketing is based on many concepts as per the orientation and perception of the firms about the business and market place, those concepts are

  • Exchange Concept
    This concept of marketing indicates that the exchange of a product between the seller and buyer is necessary.
  • Production Concept
    Production dominates the thinking process of the consumers. Products produced in a great volume at a low unit cost are supported by the consumers.
  • Product Concept
    In this concept, quality of the product is focused. Good and quality products are provided to the customer.
  • Sales Concept
    Large sales promotion is believed to maximise the selling. Organisations resort to aggressive advertising, high power personal selling. The customer is being neglected in this concept.
  • Marketing Myopia
    When an organisation gives excessive attention to production or the product or selling at the cost of the customers’ actual needs then marketing myopia is created.

Pillars of Marketing Concepts

  • Target Market
  • Customer Needs
  • Integrated Marketing
  • Profitability

Steps of Marketing

Steps of marketing are as follows

  1. Determination of Organisational Objective These objectives provide direction for all phases of the organisation and serve as standards in evaluating performance.
  2. Assessing Organisational Resources By evaluating these resources., organisations can pinpoint their strengths and weaknesses. Strengths help organisations set objectives, develop plans for meeting objectives and take advantage of marketing opportunities.
  3. Evaluating Risks and Opportunities Environmental factors—competitive, political, legal, economic, technological and social-also influence marketing opportunities. The emergence of new technologies or innovations may open new opportunities for under-marketed products.
  4. Marketing Strategy The marketing strategy is the overall company program for selecting a particular target market and then satisfying consumers in that segment.
  5. Implementing and Monitoring Marketing Plans At every step of the marketing planning process, marketing managers use feedback to monitor and adapt strategies when actual performance fails to match expectations.

Types of Marketing

There are two types of marketing

  1. Marketing to Individuals It is also called consumer goods. Products which are purchased by the ultimate consumers for satisfying their personal needs and desires are referred to as consume goods, e.g, toothpaste, soap, brush, ediable oil, textiles, shampoo, shoes, etc.
    Consumer goods are classified as

    • Convenience Goods Consumer goods purchased frequently, immediately and with least time efforts are referred to as convenience goods like pen, biscuits, newspapers, medicines, etc.
    • Shopping Goods Shopping goods are those consumer goods, in the purchase of which buyers devote considerable time to compare the quality, price, style, suitability at different stores before making final purchase. e.g, radio, refrigerator, television, cloth, etc.
    • Speciality Goods People make special efforts to purchase the service of speciality goods, e.g., restaurant, tailor, etc.
  2. Marketing to Organisations It is also called industrial goods. Industrial goods are goods which are used as inputs in producing other products. The examples of such products are raw material, engines, lubricants, fabricating material, installation, operating suppliers, etc.

Functions of Marketing

The functions of marketing and have been discussed below

  • Marketing Research
    It is a process of collection and analysing information regarding customer needs and buying habits, nature of competition prevailing prices effectiveness of advertising media, etc.
  • Product Planning and Development
    The task of marketing begins with planning and designing a product for the consumers. It can also be done while modifying and improving an existing product.
  • Buying and Assembling
    It refers to buying and collection of required goods for resale. It is primarily relevant to those business organisations who are engaged in trading activities.
  • Packaging and Labelling
    It involves putting the goods in attractive packets, containers according to the convenience of consumers. As suitable and attractive packages increase the demand for the products to a great extent.
    Labelling means putting identification marks on the package. It contains information about the producer of the product.
  • Standardisation and Grading
    Standardization helps in promoting the sale of the product by increasing consumer’s confidence in the product quality. Grading involves separating
    products into different classes on the basis of certain predetermined standards related to size and quality.
  • Branding
    It refers to giving an attractive name, symbol or identity mark to the product to make it different from other products.
  • Pricing
    It involves decisions regarding fixation of product prices. Pricing is done keeping in view the product costs, the capacity of customers to pay and the prices of the competitive products.
  • Transportation
    Transportation means carrying goods from one place to another. It helps in assembling and dispersing the goods. It links together the producers and consumers who are located at different places.
  • promotion
    Promotion means all the activities performed by a producer or by a dealer or by a businessman to increase his sales. Main purpose of promotion acitivities is to encourage and pursuade the consumers to buy a particular product.

Role of Marketing

Roles of marketing are as follows
Role of Marketing in Business

  • Technological changes are taking place at fast pace.
  • Competition has become intense in the market.
  • Consumer tastes and preferences are changing very fast.
  • Production is organised on a large-scale.

Role of Marketing in Business

  • It makes new and better products available to people, increasing their standard of living.
  • It helps in creation of new jobs.

Importance of Marketing

Importance of marketing can be discussed as follows

 Importance of Marketing to the Consumers

  • Provides different information about the product and services.
  • Helps to know the different benefits and techniques of products
  • Provides satisfaction by providing different products to meet their demand and tastes when they need.
  • Facilitates customers to select the best one according to their demand and capability.

Importance of Marketing to the Firms

  • Easily distribute the products.
  • Suggests to manage the transportation and wire-housing systems which help the firm to delivery the product.
  • Provides valuable information to make effective plan for future and right decision.
  • Suggests to reduce unnecessary costs and utilise the revenue in proper way.
  • Accumulates the opinion and ideas of different customers and supplies to the management.

Importance of Marketing to the Society

  •  An important source for the creation of employment opportunities.
  • Helps in developing the living standard.
  • Helps to utilise the different resources such as natural, financial, physical and human resources.

Tit-Bits

  • Finance is like blood of business.
  • Marketing is successful when salesmen are effectively trained.
  • In marketing, it is necessary to identify potential sellers, potential products and services, potential customers and key existing.
  • Marketing strategy means ways to improve marketing activities.
  • Marketing is definitely required when supply exceeds demand.
  • Cross selling means selling other products to existing customers.

Check Your Skills

1. The aim of successful marketing is

  1. to increase the sale
  2. to increase the profit
  3. to increase the output of sellers
  4. All of the above
  5. None of the above

2. Which among the following come under ‘facilitating’ category of marketing functions?

  1. Standardising and grading
  2. Standardising and grading, financing and risk taking
  3. Standardising and grading, financing risk taking, securing market information
  4. All of the above
  5. None of the above

3. Which among the following is the most basic concept underlying marketing?

  1. Product
  2. Market
  3. Needs, wants and demands
  4. All of the above
  5. None of the above

4. The need or want for a particular product becomes a demand, when

  1. the product/service is available
  2. it is backed by buying power
  3. a product represents that particular need
  4. All of the above
  5. None of the above

5. Which among the following is called like blood of business?

  1. Marketing
  2. Product
  3. Finance
  4. All of the above
  5. None of the above

6. Which among the following is included in marketing decisions?

  1. Promotion decision
  2. Project cost decision
  3. Finance decision
  4. All of the above
  5. None of the above

7. Which among the following is a customer oriented concept?

  1. Selling concept
  2. Marketing concept
  3. Production concept
  4. ll of these
  5. one of these

8. Social marketing concept is based upon

  1. large target market with active buyers
  2. customer satisfaction and customer welfare
  3. realisation of maximum profit through service of society
  4. All of the above
  5. None of the above

9. Which among the following may be called a pillar of marketing concept?

  1. Customer orientation
  2. Product planning
  3. Cost budgeting
  4. All of the above
  5. None of the above

10. Find the true statement.

  1. Marketing is a waste of the employee’s time
  2. Marketing is not required in India due to its vast population
  3. Marketing involves additional work
  4. Marketing involves team work
  5. Marketing is not required today due to IT advancement

11. Market information means

  1. knowledge of shops and bazaars
  2. knowledge of shopping malls
  3. knowledge of customer prftfile and product mix
  4. knowledge of various languages
  5. None of the above

12.If marketing is done effectively which ,1 the following is not required?

  1. Advertisement
  2. Publicity
  3. Market research
  4. Market segmentation
  5. None of the above

13. Profit by customer satisfaction is a tool of

  1. old concept of marketing
  2. new concept of marketing
  3. production
  4. price
  5. None of the above

14. Nature of marketing involves

  1. promotion decision
  2. determiiiation of distribution channel
  3. after sale service
  4. All of the above
  5. None of the above

15. Marketing is successful when

  1. demand exceeds supply
  2. supply exceeds demand
  3. salesmen are effectively trained
  4. All of the above
  5. None of the above

16. Marketing is best defined as

  1. facilitating satisfying exchange relationships
  2. distribution of products at lower price to the stores
  3. distribution of products at higher price to the stores
  4. promoting the products
  5. selling the products

17. The marketing concept is a way of thinking or a management philosophy that affects

  1. only marketing activities
  2. only the efforts of sales personnel
  3. most efforts of the organisation
  4. only customer relationships
  5. None of the above

18. Aggressive marketing is necessitated due to

  1. globalisation
  2. increased competition
  3. increased production
  4. increased job opportunities
  5. All of the above

19. The exchange concept of marketing takes place between and

  1. seller, buyer
  2. customer, consumer
  3. consumer, buyer
  4. buyer, purchaser
  5. None of the above

20. Marketing stress is on needs of the buyer, whereas selling stress on the need of

  1. market
  2. seller
  3. product
  4. consumer
  5. None of the above

21. Marketing research involves

  1. collection of facts
  2. analysis of facts
  3. gathering records
  4. developing suitable marketing strategies
  5. All of the above

22. Which of the following is/are the marketing concepts?

  1. Exchange concept
  2. Production concept
  3. Product concept
  4. Sales concept
  5. All of the above

23. Which of the following is/are function of marketing?

  1. Marketing research
  2. Product planning
  3. Buying and assembling
  4. Branding and packaging
  5. All of the above

24. Which of the following is the function of promotional activities?

  1. To motivate the customer to buy the product
  2. To sell the goods to the customers
  3. To fix the price of the product
  4. To store the unsold goods
  5. To produce more goods

25. Marketing involves earning profit through maximisation of

  1. sales
  2. production
  3. expansion
  4. customer’s satisfaction
  5. None of the above

26. Selling involves earning profit through maximisation of

  1. j sales
  2. profit
  3. marketing
  4. production
  5. None of these

27. In marketing, the consumer is king, whereas in selling is king.

  1. product
  2. production
  3. promotion
  4. customer
  5. None of the above

28. Which of the following is/are objective of marketing?

  1. Satisfying customers
  2. Increasing demand
  3. Creating goodwill for the organisation
  4. Providing better quality products
  5. All of the above

29. Understand marketing as

  1. only selling
  2. meeting human and social needs profitably
  3. to focus on customer
  4. to focus only on producing
  5. Both ‘2’ and ‘3’

30. Marketing is [SBI Clerk 20081

  1. consumer oriented
  2. competitors oriented
  3. producer oriented
  4. Both ‘1’ and ‘2’
  5. Both ‘2’ and ‘3’

31. Proper marketing requires [SBI Clerk 2008]

  1. planning
  2. sympathy
  3. Knowledge of products
  4. Both 1’ and ‘2’
  5. Both ‘1’ and ‘3’

32. In marketing, it is necessary to identify [SBI Clerk 2008]

  1. potential sellers
  2. potential products and services
  3. key existing and potential customers
  4. Both ‘1’ and ‘2’
  5. All of the above

33. Marketing is influenced by [SBI Clerk 2009]

  1. product demand
  2. public taste
  3. buyer behaviour
  4. brand image
  5. All of the above

34. The sale aim of marketing is to [SBI Clerk 2010]

  1. increase sales
  2. increase the number of employees
  3. increases profits
  4. increases production
  5. All of the above

35. The ultimate aim of marketing is to provide [SBI Clerk 2011]

  1. more business to the company
  2. more profit
  3. more staff
  4. more production
  5. more products

36. Selling process includes [SBI Clerk 2011]

  1. publicity
  2. lead generation
  3. cross country contacts
  4. product designing
  5. product redesigning

37. Marketing strategy means [SBI Clerk 2011]

  1. idea for further income
  2. old techniques of sales
  3. ways to improve marketing activities
  4. ways to increase production
  5. networking

38. Product design is a function of [SBI Clerk 2011]

  1. front office staff
  2. back office staff
  3. management
  4. marketing and research team
  5. loan section

39. Marketing has taken a prominent position during the last decade due to [SBI Clerk-2012]

  1. increased competition
  2. better literacy rate
  3. foreign compulsions
  4. government instructions
  5. Reserve Bank of India Policy guidelines

40. Marketing is definitely required when demand exceeds supply [SBI Clerk 2012]

  1. supply exceeds demand
  2. supply equals demand
  3. staff is in excess
  4. there is no monopuly

41. The traditional marketing style involves

  1. door-to-door campaigns
  2. sending E-mails
  3. telemarketing
  4. SMS campaigns
  5. virtual marketing

42. The task of marketing involves [SBI Clerk 2012]

  1. opening new branches
  2. buying a company
  3. selling a company
  4. selling products and services of company
  5. mergers

43. Selling is [SBI Clerk 2012, 09]

  1. same as marketing
  2. more than marketing
  3. offering discounts
  4. a sub-function of marketing
  5. nothing to do with marketing

44. Marketing is the function of [SBI Clerk 2012]

  1. only sales persons
  2. only counter staff
  3. only qualified persons
  4. top bosses
  5. a collective function of all staff

45. The sale aim of marketing is to [SBI Clerk 2012]

  1. improve the balance sheet figures
  2. increase recruitment
  3. increase profits
  4. increase production
  5. increase branch network

46. ‘Cross selling’ means [SBI Clerk 2012]

  1. selling to enemies
  2. selling new products
  3. reversal of a sale
  4. selling other products to existing customers
  5. public relations

47. Marketing opportunities means

  1. availability of sales persons
  2. availability of data
  3. new product launching
  4. scope for marketing
  5. evaluation of performance

Answer Key

marketing-aptitude-study-material-introduction-marketing-key

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