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Marketing Aptitude Study Material – Modern Marketing System

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Marketing Aptitude Study Material – Modern Marketing System

Marketing Aptitude Study MaterialComputer AwarenessBanking Awareness

This technique understands the needs and desires of the customer and product is designed accordingly. Its main motive is customer satisfaction that is building a relationship with customer and is achieved through an integrated, corporate wide set of marketing activities.

Modern marketing can be explained as ‘getting the right goods, at the right time, at the right place, with the right communication, to the right people, at the right price.’

Fields of Modern Marketing System

Following fields are involved in modern marketing system

  • Traditional Fields: Public welfare services like electricity and water supply, transport, education, hotel, entertainment, banking, hospital, accounting, etc.
  • Modern Fields: Travel agency, real estate, advertisement, public relations, market research, courier services, credit card services, etc.
  • Newly Developing Fields: Computer training, vocational service, Internet, recruitment services, video conferencing, E-commerce, etc. It is clear that newly developing service fields are not person centered now-a-days but involved with modern technology and is going to become sophisticated and complex.

Functions of Modern Marketing System

  • To understand the nature of service
  •  To understand the customer and his expectations
  • Sizing services
  • Promotion
  • To decide prices
  • Organize delivery system
  • To observe carefully customer satisfaction
  • Pay attention to the variation of achievement

Ways of Modern Marketing Field

  •  Export
  • Technology and information licensing
  • Multinational business
  • Joint venture
  • Fully global operations

Various Modes of Modern Marketing System

Various modes of modem marketing system are

  • Mobile Banking: It is a system that allows customers of a financial institution to conduct a number of financial transactions through a mobile device such as a mobile phone or personal digital assistant.
  • Cyber Marketing: It simply refers to a technique of attracting potential customers by advertising your products or services through websites, E-mails and banners. A number of activities are involved in cyber marketing such as online marketing, fax direct marketing, canvassing, etc.
  • CRM (Customer Relationship Management): It entails all aspects of interaction that a company has with its customer, whether it is sales or service-related. CRM systems are used in the same way to manage business contacts, clients, contract wins and sales leads.
  • Green Marketing: It refers to the promotional activities aimed at taking advantage of the changing consumers attitude toward a brand. These changes are increasingly being influenced by a firm’s policies and practices that affect the quality of the environment and reflect the level of its concern for the community.
  • E-Commerce: E-commerce or electronic commerce, a subset of E-business, is the purchasing, selling and exchanging of goods and services over computer networks (such as the internet) through which transactions or terms of sale are performed electronically.

Types of E-commerce

The types of E-commerce are

  1. B2B (Business-to-Business): Companies doing business with each other such as manufacturers selling to distributors and wholesalers selling to retailers.
  2. B2C (Business-to-Consumer): Businesses selling to the general public typically through catalogues utilising shopping cart software.
  3. C2B (Consumer-to-Business): A consumer posts his project with a set budget online and within hours companies review the consumers requirements and bid on the project. The consumer reviews the bids and selects the company that will complete the project.
  4. C2C (Consumer-to-Consumer): There are many sites offering free classifieds, auctions and forums where individuals can buy and sell things to online payment systems where people can send and receive money with ease.

Display Advertising

It is graphical advertising on the World Wide Web that appears next to content on web pages, IM applications, E-mail, etc.

Global Marketing

It is the process of conceptualizing and then conveying a final product or service world wide with the hopes of reaching the international marketing community. Global marketing is especially important to companies that provide products or services and have a universal demand such as automobiles and food.

Functions of global marketing are

  • Select the default route for global marketing
  • Market selection and product selection
  • Select delivery vessels
  • Develop pricing tactic
  • International marketing communications
  • Have expertise in procedural complications

Service Marketing

It is the promotion of economic activities offered by a business to its clients. Service marketing might include the process of selling telecommunications, health treatment, financial, hospitality, car rental, air travel and professional services.

Characteristics of Service Marketing

It can be paraphrased in terms of their generic key characteristics

  1. Intangibility: Services are intangible and insubstantial; they cannot be touched, gripped, handled, looked at, smelled, tasted or heard.
  2. Inseparability: The service provider is indispensable for service delivery as he must promptly generate and render the service to the requesting service consumer
  3. Simultaneity: Services are rendered and consumed during the same period of time.
  4. Variability: Each service is unique. It is one-time generated,rendered and consumed and can never be exactly repeated as the point in time, location, circumstances, etc are different for the next delivery, even if the same service consumer requests the same service.

Bank Marketing

Bank marketing is to develop a distinctive brand image which is considered the main reputation of the financial institution. It is defined as an aggregate of function providing service to satisfy customer’s financial needs and wants.

Tit-Bits

  • KYC means Know Your Customers.
  • Good customer service is an extended arm of service marketing.
  • Transaction marketing involves selling of mere services.
  • Marketing of services is adopted in hotels.
  • Digital marketing is the same as online marketing.
  • Motivating customers to buy upgraded
  • products when they had intended to buy something of lower value, is known as cross-selling. 
  • USP means Unique Selling Proposition.
  • SME means Sales and Mergers of Entities.

Check Your Skills

1. Service marketing is the same as [SBI Clerk 2012]

  1. relationship marketing
  2. transaction marketing
  3. passive marketing
  4. internal marketing
  5. instant marketing

2. The target market for debit cards is [SBI PO 2013]

  1. all existing account-holders
  2. all agriculturists
  3. all DSAs
  4. all vendors
  5. all outsourced agents

3. The modem marketing concept assets that ‘marketing’ starts with the product idea and ends with [SBI Clerk 2012]

  1. production of quality product
  2. advertisement campaign
  3. customer satisfaction
  4. sale of the product
  5. exchange of money

4. A call in marketing means

  1. to phone the customers
  2. to visit the customers
  3. to visit the marketing site
  4. to call on prospective customer
  5. None of the above

5. Service marketing implies selling of [SBI Clerk 2012]

  1. only goods
  2. only services
  3. web servers
  4. various commodities
  5. goods and services

6. KYC means [SBI Clerk 2012]

  1. Keep Your Customers Cool
  2. Keep Your Credit Card
  3. Know Your Customers
  4. Keep Your Cool
  5. Know Your Credits

7. Customer retention can be ensured by [SBI Clerk 2012]

  1. offering freebies
  2. offering loans at low rates
  3. catchy slogans
  4. giving incentives
  5. personalised services

8. 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

9. Motivating customers to buy upgraded products when they had intended to buy something of lower value is known as [SBI Clerk 2012]

  1. cross selling
  2. forward selling
  3. marketing
  4. channel marketing
  5. upselling

10. EMI is a marketing tool if [SBI Clerk 2012]

  1. it is very high
  2. it is very low
  3. it is increasing
  4. it is fluctuating
  5. it has no role as a marketing tool

11. Motivation in marketing means [SBI Clerk 2012]

  1. inspiring sales persons to talk more
  2. inspiring sales persons to sell more
  3. inspiring counter staff to talk’more
  4. market size
  5. market place

12. Good customer service is an extended arm of [SBI Clerk 2012]

  1. service marketing
  2. web marketing
  3. process marketing
  4. indirect marketing
  5. internal marketing

13. Modem methods of marketing include

  1. publicity on the net
  2. advertisement on the net
  3. soliciting business through E-mails
  4. telemarketing
  5. All of the above

14. Transaction marketing involves selling of [SBI Clerk 2012]

  1. mere goods
  2. mere services
  3. ideas and thoughts
  4. repair work
  5. after-sales service

15. SME means [SBI Clerk 2012]

  1. Selling and Marketing Employees
  2. Sales and Margers of Entities
  3. Small and Micro Entities
  4. Small and Medium Enterprises
  5. Sales performance Measurement Program

16. The process of discovering patterns and relationships using the available customer data to reveal what customers want and how they act is known as [SBI Clerk 2012]

  1. data warehousing
  2. data base
  3. data mining
  4. data building
  5. data matching

17. Financial inclusion means [SBI Clerk 2012]

  1. financial statements
  2. financial data
  3. wholesale banking
  4. retail banking
  5. bringing all poor people under banking net

18. Find the correct sentence. [SBI Clerk 2012]

  1. KYC norms are not applicable for financial inclusion
  2. Loans can be granted to students at two rate of interest
  3. Home loans are not useful for public
  4. NRI customers are not profitable customers
  5. Online marketing is very costly

19. Margin contribution in the case of a loan account, means [SBI Clerk 2012]

  1. money paid by bank to borrower
  2. same as EMI
  3. borrowers own contribution for the venture
  4. stamp duty
  5. registration charges

20. Global marketing is a result of

  1. domestic charge
  2. globalisation
  3. privatisation
  4. All of these
  5. None of these

21. Mutual fund business from existing bank customers can be mobilised by [SBI Clerk 2012, 11]

  1. online marketing
  2. cross-selling
  3. telemarketing
  4. carpet bombing
  5. road-shows

22. Digital marketing is the same as [SBI Clerk 2012]

  1. online marketing
  2. cross-selling
  3. website designing
  4. road-shows
  5. door-to-door marketing

23. Telemarketing means [SBI Clerk 2011]

  1. selling telephones
  2. sending SMS messages
  3. chatting on the phone
  4. marketing through phone calls
  5. marketing in person

24. Savings accounts can be opened by [SBI Clerk 2012]

  1. all individuals fulfilling KYC norms
  2. all tax payers only
  3. all individuals above the age of 18
  4. all businessmen only
  5. all students below the age of 18

25. In a savings account, money can be deposited on [SBI Clerk 2012]

  1. monthly basis
  2. as per the convenience of the depositor
  3. annual basis
  4. in one lumpsum
  5. quarterly basis

26. Standard marketing practices include [SBI Clerk 2012]

  1. poaching
  2. unhealthy competition
  3. lowering the selling price
  4. unhealthy discount schemes
  5. phishing

27. Aggressive marketing is necessitated due to [SBI Clerk 2012]

  1. globalisation
  2. increased competition
  3. increased production
  4. increased job opportunities
  5. increased staff

28. Customisation results in [SBI Clerk 2012]

  1. customer exit
  2. customer retention
  3. customer complaints
  4. better balance sheet figures
  5. better technology

29. Online marketing is mosdy useful for marketing of [SBI Clerk 2011]

  1. savings accounts
  2. credit cards
  3. home loans
  4. NRI deposits
  5. business accounts

30. ‘USP’ in marketing means [SBl Clerk 2012]

  1. Unique Selling Practices
  2. Uniform Selling Practices
  3. United Sales Persons
  4. Unique Selling Proposition
  5. Useful Sales Person

31. Mutual funds investments can be effectively canvassed among [SBl Clerk 2011]

  1. only salaried persons
  2. students availing education loans
  3. HNI customers
  4. sunrise industries
  5. poor farmers

32. Leads for canvassing home loan accounts can be obtained from [SBl Clerk 2012]

  1. builders
  2. individuals building one’s own house
  3. audit departments
  4. brick manufacturers
  5. cement suppliers

33. Internet banking can be popularised by way of [SBl Clerk 2012]

  1. reduced prices
  2. higher prices
  3. wide area network
  4. better technology
  5. more ATMs

34. The target group for an ATM-cum-Debit Card is [SBl Clerk 2012]

  1. all primary school children
  2. all prisoners
  3. firms
  4. all existing and prospective customers
  5. other bank’s customers

35. Bank marketing means [SBl Clerk 2008]

  1. selling of banks
  2. buying of banks
  3. merger of banks
  4. selling bank’s products and services
  5. selling various items in banks

36. The type of marketing involved in banks is [SBl Clerk 2012]

  1. transaction marketing
  2. service marketing
  3. commodity marketing
  4. ruthless marketing
  5. indifferent marketing

37. The USP of a current account is [SBl Clerk 2012]

  1. no restrictions of transactions
  2. low TDS
  3. high minimum balance
  4. high interest payable
  5. no need for KYC norms fulfillment

Answer Key

Marketing Aptitude Study Material - Modern Marketing System-key16

Marketing Aptitude Study Material – Consumer Protection

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Marketing Aptitude Study Material – Consumer Protection

Marketing Aptitude Study MaterialComputer AwarenessBanking Awareness

Consumer protection means safeguarding the interests and rights of consumers. In other words, it refers to the measures adopted for the protection of consumers from unscrupulous and unethical malpractices by the business and to provide them speedy redressal of their grievances.

The most common business malpractices leading to consumer exploitation are given below

  • Sale of duplicate goods.
  • Sale of sub-standard goods.
  • Sale of spurious goods.
  • Sale of adulterated goods.
  • Use of false weights and measures leading to underweight.
  • Hoarding and black-marketing, leading to scarcity and rise in price.
  • Charging more than the Maximum Retail Price (MRP) fixed for the product.
  • Misleading advertisements, e., advertisements falsely claiming an inferior product or service to be of superior quality, grade or standard.
  • Supply of inferior services, i.e., quality of service lower than the quality agreed upon.

Consumer Protection Act (CPA), 1986

This Consumer Protection Act was passed in 1986 and it came into force from 1st July, 1987. The main objectives of the Act are to provide better and all round protection to consumers and effective safeguards against different types of exploitation such as defective goods, deficient services and unfair trade practices.It also makes provisions for a simple, speedy and inexpensive machinery for redressal of consumer’s grievances.

Salient Features, of CPA, 1986

  1. It applies to all goods, services and unfair trade practices unless specifically exempted by the central government.
  2. It covers all sectors-private, public or co-operative.
  3. It provides for establishment of consumer protection councils at the central, state and district levels to promote and protect the rights of consumers.
  4. It provides a statutory recognition to the six rights of consumers.

Goods and Services Covered Under CPA, 1986
The term ‘goods’ under this Act has the same meaning as under the Sale of Goods Act. Accordingly. it covers all types of movable property other than money and includes stocks and shares,growing crops, etc.

The term ‘service’ means service of any description made available to potential users and includes banking, financing, housing construction, insurance,entertainment, transport, supply of electrical another energy, boarding and lodging, amusement, etc.The services of doctors, engineers, architects,lawyers, etc are also to be included under the Provisions of Consumer Protection Act.

Some Acts Related to Consumer Protection

  • The Sale of Goods Act, 1930
  • Agricultural Products (grading and marketing) Act, 1937
  • Drug Control Act, 1950
  • Industries Development and Regulation Act, 1951
  • Prevention of Food Adulteration Act, 1954
  • Essential Commodities Act, 1955
  • Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act)
  • The Prevention of Black Marketing and Maintenance of Essential Supplies Act, 1980
  • Bureau of Indian Standard Act, 1986
  •  Consumer Protection Act, 1986
  • Trademark Act, 1999
  • Competition Act, 2002

Rights of Consumers

The Consumer Protection Act provides following rights of consumers

  • Right to Safety: It is the right of the consumers to be protected against goods and services, which are hazardous to health or life. Food additives and colours, dangerous toys, flammable fabrics, unsafe appliances are examples of such goods.
  • Right to be Informed: It means the consumer must be provided with adequate and accurate information about quality, potency, quantity, purity, standard and the price of the goods and services. Such information helps the consumers in their buying decisions and use of the products.
  • Right to Choose: It provides that the consumer must be assured, whenever possible, access to a variety of goods and services at competitive prices. Free competition and wide variety of products enable consumers to choose the best goods.
  • Right to be Heard: This right means that consumers have a right to approach government and public bodies when decisions and policies are made which can hamper consumer interests.Also, consumers have a right to be heard by manufacturers, dealers and advertisers about their opinion on production, marketing decisions and any grievances of the consumers.
  • Right to Seek Redressal: The consumers have been given the right of redressal of their grievances relating to the performance, grade, quality, etc of the goods and services. The Consumer Protection Act has duly provided for a fair settlement of genuine grievances of the consumers.It has also set-up a proper mechanism for their redressal at district, state and national levels.
  • Right to Consumer Education: It means the consumer has the right to receive knowledge to become informed consumer. In this direction, the consumer associations, educational institutions and policy-makers can play an important part.

In India, 24th December is celebrated as National Consumer Day because on 24th December 1986, Consumer Protection Act. 1986 was applied. Along with it, from the year 2000.15th March is celebrated as World Consumer Day.

MRTP ACT

Now-a-days there is a tendency in the businessmen to exploit customer by giving the misleading advertisments. Sometimes impossible things are guaranteed, also the advertised things to the monopoly.To protect the consumers from this type of exploitation, central government has prepared Monopolies and Restrictive Trade Practices Act, it is abbreviated as MRTP. Consumers need to complain to MRTP Commission about such matter so that necessary action can be taken.

What can be the Complaints?

  • In case of loss due to the use of improper/ restricted techniques
  • Defect in the goods purchased
  • Problems in the hired or used services
  • Price charged than the indicated prize
  • In case of violation of law and a good is being sold to public which can cause their life

Who can File a Complaint?

  • Consumer itself
  • Volunteer consumer organisation which is registered under committee register act 1860 or company act 1951 or registered under law applied currently.

Central or State Government can take this matter in its 1 cognition.

Where to File a Complaint?

Where to file a complaint depends on the cost of service or amount demanded as compensation.

  • If the amount is less than 20 lac, then complain can be filed in distric forum.
  • If the amount is more than 20 lac and less than 1 crore, then complain can be filed in state commission.
  • If the amount is more than 1 crore, then commission can be filed in national commission.

How to File a Complaint?

  • Consumer can file a complaint on plain paper
  • Details of the consumer and opposite party
  • Facts related to the complain, like when and where
  • Documents supporting the complaint
  • Signature of authorised agent

There is no need of lawyer for these types of complaints, a nominal court fee is charged for it.

Compensation: Compensetion includes the cost to you i caused by a problem with products or services. This is usually financial costs, but can include other costs such as lost time or productivity.

Tit-Bits

  • Consumer association, education institutions and policy makers can play an important role for the right to consumer education.
  • Under hiring type of agreement for a contract, the buyer has a right to return the goods at any time.

Check Your Skills

1. Which of the following day is celebrated as world consumer right day?

  1. 15th March
  2. 20th March
  3. 15th April
  4. 20th April
  5. None of these

2. Which of the following rights of consumer protects the consumer against goods and services hazardous to health or life?

  1. Right to choose
  2. Right to safety
  3. Right to be informed
  4. Right to seek redressal
  5. None of the above

3. Which of the following is/are right/rights of consumer?

  1. Right to safety
  2. Right to choose
  3. Right to be informed
  4. Right to be heard
  5. All of the above

4. Which of the following can play an important role for the right to consumer education?

  1. Consumer association
  2. Education institutions
  3. Policy makers
  4. All of the above
  5. None of the above

5. The Consumer Protection Act came into force in

  1. 1986
  2. 1987
  3. 1988
  4. 1990
  5. None of these

6. Which of the following day is celebrated as national consumer day?

  1. 10th December
  2. 24th January
  3. 24th December
  4. 15th March
  5. None of the above

7. Under which type of agreement for a contract, the buyer has a right to return the goods at any time?

  1. Hiring
  2. Agency
  3. Bailment
  4. Sale
  5. None of these

8. MRTP stands for

  1. Market Research Technique Process
  2. Monopolies and Restrictive Trade Practices
  3. Member of Restrictive Trade Practices
  4. Measurement and Research of Testing Process
  5. None of the above

9. CPA stands for

  1. Consumer Prevention Act
  2. Customer Prevention Act
  3. Consumer Precaution Act
  4. Consumer Protection Act
  5. None of the above

10. Under the Consumer Protection Act, 1986, ‘goods’ means

  1. every kind of movable property only
  2. every kind of immovable property only
  3. every kind of movable property other than money
  4. All of the above
  5. None of the above

11. Under which of the following rights, the consumer must be provided the quality detail of product?

  1. Right to safety
  2. Right to be informed
  3. Right to choose
  4. Right to education
  5. None of these

12. Goods under CPA, 1986 covers

  1. all movable property
  2. stocks and shares
  3. growing crops
  4. All of the above
  5. None of the above

13. Which of the following rights provides a fair settlement of genuine grievances of the consumers?

  1. Right to seek redressal
  2. Right to consumer education
  3. Right to be heard
  4. Right to be informed
  5. None of the above

14. MRTP Act came into existence in

  1. 1969
  2. 1972
  3. 1975
  4. 1985
  5. None of these

15. Consumer protection means

  1. safeguarding interest of consumers
  2. safeguarding rights of consumers
  3. protection against unethical malpractices
  4. All of the above
  5. None of the above

16. Consumer Protection Act came into existence in

  1. 1946
  2. 1966
  3. 1976
  4. 1986
  5. 1996

17. The time of the central consumer protection council under the Consumer Protection Act, 1986 is

  1. 3 years
  2. 4 years
  3. 5 years
  4. 6 years
  5. None of these

18. Which of the following is not included in the term ‘person’ under Consumer Protection Act, 1986?

  1. Hindu undivided family
  2. A co-operative society
  3. Firm
  4. AH of the above
  5. None of the above

19. The most common business malpractice leading to consumer exploitation include

  1. sales of duplicate goods
  2. sales of sub-standard goods
  3. hoarding and black marketing
  4. charging more than MRP
  5. All of the above

20. In case goods are purchased for resale, these goods under the Consumer Protection Act, 1986 are

  1. meant
  2. for business
  3. for sale
  4. for commercial purpose
  5. All of the above
  6. None of the above

21. The Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities Act was passed in

  1. 1980
  2. 1982
  3. 1985
  4. 1986
  5. 1990

22. Consumers preferably purchase quality marked products, like products with ISI, Agmark. It is their

  1. right to be informed
  2. right to safety
  3. right to be heard
  4. right to choose
  5. None of the above

Answer Key

Marketing Aptitude Study Material - Consumer Protection-key15

Marketing Aptitude Study Material – Branding, Packaging & Labelling

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Marketing Aptitude Study Material – Branding, Packaging & Labelling

Marketing Aptitude Study MaterialComputer AwarenessBanking Awareness

Branding

Branding is the management process by which a product is branded. It is a general term covering various activities like giving a brand name to a product, designing a brand mark and enforcing it.

Importance of Branding

  •  Brand is a perceptual entity rooted in reality which ultimately resides in the minds of consumers.
  •  Branding is all about creating difference between products.
  • Branding creates mental structures that help consumers to organize their knowledge about products and services in a way that clarifies their decision making which also provides value to the firm.
  •  Brand difference often relate to attributes or benefits of the product itself.
  • Marketers can apply branding virtually anywhere a consumer has a choice. It is possible to brand a physical good (Maggi noodles, Lux soap) a service, (ICICI’s banking service) a store, (Big bazar, West side) a person (celebrities, like Amir Khan, MS Dhoni) a place (Goa, Kerala) an organisation (UNICEF) or an Idea (Family planning).

Functions of Branding

  • It helps in product identification and gives ‘distinctiveness’ to a product.
  • Indirectly, it denotes the quality or standard of a product.
  • It eliminates imitation of products.
  • It ensures legal right on the product.
  • It helps in advertising and packaging activities.
  • It helps to create and sustain brand loyalty to particular products.
  • It helps in price differentiation of products.

Advantages of Branding

The advantages of using brand names could be easily recognized for each group of participants in the marketing viz manufacturers, consumers, distributors, as follows

  • To the Manufacturers
    1. It identifies the product and distinguishes it from other competing products. Thus, it protects the interests of the manufacturers.
    2. It saves advertising cost if the brand name is popular.
    3. If properly promoted, brand name creates confidence and goodwill for the products.
  • To the Manufacturers
    1. It provides an easy way for purchase by easy identification of a product.
    2. The brand name indirectly assures certain quality by identifying the manufacturer with the product.
  • To the Distributors
    1. Widely popular brands ease the selling process and lead to large sales.
    2. It helps in advertising and sales promotion programmes.
    3. The distributor can easily find out the quick moving products.
    4. Branding reduces price flexibility. Thus, in turn, reduces the risk in business.
    5. Special selling efforts need not be undertaken. This reduces the cost of distribution and thus, the final price.

Different Terms Related to Branding

There are some important terms related to branding.

Brand

A brand is the identification of a product e.g., Nike, Reebok, LG, etc.

Types of Brand

We can classifiy the brand into following two broad categories

  • Manufacturers Brands
    •  National Brands: The same brand used on a national level.
    • Regional Brands: Brand for particular region.
    • Advertising Brands: Brands stressing symbols.
    • Blanket Brands or Single Brands: or Family Brands One brand name for all the products of a manufacturer, eg., Godrej products which includes locks, refrigerator, furniture range, safes, etc.
    • Multiple Brands or Individual Brands: Brand name given for each variety of product, eg., various brand soaps of TATAs.
  • Distributors Brands
    •  Private brand
    • Dealer brand
    • Store brand
    • House brand

Distributors brands stress on the identity of the retailer.

Brand Name

The part of a brand, which can be spoken, is called a brand name. It is the verbal component of a brand e.g., Uncle Chips, Vivel, Maggie, Safola, Maruti Suzuki, etc.

Characteristics of a Good Brand Name 

At the time of choosing a brand name, various aspects require careful consideration.

The following are some of the general considerations

  • Easy to pronounce
  • Easy to read and understand
  • Appropriate for the product
  • Easy to remember
  • Most descriptive in nature

Brand Awareness: It means the extent to which consumers are familiar with the qualities or image of a particular brand of goods or services.

Brand Mark: Brand mark appears in the form of a symbol, design, distinct colour scheme or lettering, e.g., the Gattu of Asian Paints, Zuzu of Vodaphone or Devil of Onida TV.

Brand Cover: To conquer a new market, when any company launches its new series of product by converting the old appearance of its own products, it is called brand cover.

Brand Loyalty: When customer buys a brand, not only because of habit but due to the likings or preference towards a particular brand, then it is known as brand loyalty.

Brand Equity: Brand equity should be defined in terms of marketing effects uniquely attributable to a brand. That is different outcomes result in the marketing of a product or service because of its brand compared to the results if that same product or service was not identified by that brand.

Trademark: Any name, symbol, figure, letter, word or mark used to indentify or distinguish a product produced by a particular manufacturer, is called trademark. A trademark must be registered with a government patent office to assure its exclusive use by its owner.

Logo: A logo is a graphic mark or emblem commonly used by commercial enterprises, organisations and even individuals to aid and promote instant public recognition.It can be a drawing, image or symbol that identifies and represents a company but this does not necessarily mean, the logo has been registered as a trademark.

A business logo is often used on websites, pamphlets or any type pf advertising material offered by a company.

Brands image

Some Brands and Trademarks

Packaging

Packaging is the technology of enclosing or protecting products for distribution, storage, sale and use.

It means putting the products in suitable containers or packets such as tin, plastic jar or card board box, etc.Packaging should be such that product is protected and can be easily handled. It should be attractive and eye-catching and as far as a eco-friendly.

Objectives of Packaging

Packaging must achieve a number of objectives which are as follow

  • Identify the brand
  • Convey descriptive and persuasive information.
  • Facilitate product transportation and protection.
  • Assist at home storage
  • Aid product consumption

Functions of Packaging 

First, packaging must protect the product. It also has a promotional role which has become more important.Some of the important functions are

  • To assemble and arrange the contents in the desired form.
  • Helps to identify the contents, the brand and the maker.
  • To facilitate transporting storing and warehouse handling.
  • To enable the display of contents.
  • To encourage repurchase.

Types of Packaging

On the basis of convenience, packaging is categorized as follows

  • Primary Packaging: It is the material that first envelops the product and holds it. This usually is the smallest unit of distribution or use and is the package which is in direct contact with the contents.
  • Secondary Packaging: It is outside the primary packaging, perhaps used to group primary packages together.
  • Tertiary Packaging: It is used for bulk handling, ware house storage and transport shipping. The most common form is a palletised unit load that packs tightly into containers
  • On the basis of nature, packaging is classified into
  • Family Packaging: The products of a particular manufacturer when packed in an identical manner is known as family packaging. The shape, color, size, etc of packaging will be similar for all his products.
  • Reuse Packaging: Packages that could be reused for some other purpose after the packed goods have been consumed is known as re-use packaging. This aspect increases the sales value of the product considerably.

Functions of Packaging 

First packaging must protect the product. It also has a promotional role which has become more important.

Some of the important functions are

  • To assemble and arrange the contents in the desired form.
  • Helps to identify the contents, the brand and the maker.
  • To facilitate transporting storing and warehouse handling.
  • To enable the display of contents.
  • To encourage repurchase.

Multiple Packaging

It is the practice of placing several units in one container.

Characteristics of Packaging

  • It is very important for packaging to be visually appealing to the consumer.
  • Packaging should be cost effective.
  • It should have distinctive and unique design or logo.
  • It should contain the necessary information about the utility of a product.
  • It should be convenient to handle.
  • It should be able to absorb humidity, temperature, etc.
  • It should not be fraudulent in giving any information

Importance of Packaging

  •  Security/safety of the product
  • Convenience in advertisement
  • Facilitate the use of product
  • Facilitate marketing
  • Facilitate easy storage and transportation
  •  Facilitate product identification

Labelling

The label can be a simple attached tag or an elaborately designed graphic that is a part of the package. It serves the purpose of indicating the contents, weight or measure, instructions for use, price, name of the producer, data of manufacturer and expiry, etc.

The information on the label is essential for various reasons e.g., the date of expiry in case of medicines and date of manufacture in the case of eatables prevent the sale of products which may prove harmfil.

Types of Labels

There are three types of labels that are as follows

  1. Brand Lable: In this type of lable, only brand name is used on package of a product. This brand name is either producer’s name or any word, symbol or design. e.g., Lux, Lifebuoy, etc.
  1. Grade Label: Product classification in this label is based on standards quality. Products are classified into A, B, C or 1, 2, 3 categories based on quality.
  1. Descriptive Label: This labelling is used for the branded products that furnishes detailed information about the product attributes and quality.

Functions of Labelling

  • A label describes the product and specify its contents.
  • It helps in identification of the product or brand.
  • It helps in grading the products into different categories.
  • It aids in promotion of the products.
  • It provides information required by the law.

Tit-Bits

  • Manufacturer brands usually require a producer to become involved in distribution, promotion and pricing decisions.
  • Copyright is applicable in the case of books.
  • A companys ability to perform in one more way that competitors cannot or will not match is known as its competitive advantage.
  • Logos can be explianed as the visual icons that give an exceptional recognition aspect to a product.
  • A good brand can be built up by the way of consistant offering of goof services.

Check Your Skills

1. Brand image is partially derived from a

  1. price image
  2. product image
  3. company image
  4. place image
  5. None of these

2. A package which has a secondary usefulness after its contents have been consumed, is called [SBI Clerk 2008]

  1. Dual use package
  2. Bulk package
  3. Both ‘1’ and ‘2’
  4. Consumer package
  5. Industrial package

3. The process of branding covers

  1. giving on identify to a product
  2. designing a brand mark
  3. establishing the product
  4. popularising the product
  5. All of the above

4. The collective perceptions and impressions people have formed about an organisation, its product and or its services is known as its [SBI Clerk 2012]

  1. brand image
  2. brand value
  3. brand alert
  4. brand attribute
  5. brand architecture

5. Trademark is the legal word of

  1. brand
  2. product
  3. patent
  4. All of these
  5. None of these

6. Which of the following is the type of distributors brand?

  1. Private brand
  2. Store brand
  3. Dealer brand
  4. House brand
  5. All of these

7. One distinguishing factor between a brand name and a brand mark is that a brand name

  1. creates customer loyalty
  2. implies an organisation’s name
  3. consists of words
  4. identifies only one item in the product mix
  5. None of the above

8. 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

9. The function of branding includes

  1. product identification
  2. ensuring legal right on product
  3. price differentiation of products
  4. sustaining brand loyalty
  5. All of the above

10. Which of the following constitute a trend?

  1. Name
  2. Term
  3. Symbol
  4. Design
  5. All of these

11. Which of the following can have the advantage of brand names?

  1. Manufacturers
  2. Consumers
  3. Distributors
  4. All of these
  5. None of these

12. What is a logo?

  1. Picteral representations of what the company stands for
  2. Graphic or emblem used by a company to trigger instant recall
  3. The short form of the name of the company
  4. All kinds of advertisements used by the company
  5. All of the above

13. Branding is the … process.

  1. marketing
  2. management
  3. static
  4. technical
  5. None of these

14. A brand is best defined as a

  1. name of the manufacturer of the product
  2. name, symbol, design or combination of these, that identifies a seller’s products
  3. registered design or symbol that is displayed on the product
  4. related group of words that described the product
  5. copyrighted words that give the manufacturer exclusive ownership

15. When a brand name is registered and legalised, it becomes

  1. trademark
  2. brand mark
  3. trade right
  4. brand right
  5. None of these

16. Which of the following is the type of manufacturers brand?

  1. National brand
  2. Regional brand
  3. Advertising brand
  4. Blanket brand
  5. All of the above

17. brands usually require a producer to become involved in distribution, promotion and pricing decisions.

  1. Retailer
  2. Wholesaler
  3. Manufacturer
  4. Own label
  5. All of these

18. Which of the following is not a desirable feature for a brand name?

  1. It can help develop brand loyalty amongest buyers
  2. It can facilitate the introduction of new. products
  3. It can make it possible for the firm to engage in non-price competition
  4. It can become used as the generic name for all products in the category
  5. None of the above

19. A brand can be helpful for the manufacturers to

  1. distinguish the product from other competing products
  2. save advertising cost
  3. widen the work for products
  4. create goodwill for the product
  5. All of the above

20. The objectives of packaging are

  1. Identify the brand
  2. Aid product consumption
  3. Assist at-home storage
  4. All of the above
  5. None of the above

21. A brand can be helpful for the distributors in

  1. leading to large selling
  2. reducing the price flexibility
  3. reducing the cost of distribution
  4. costing the selling process
  5. All of the above

22. Logos can be explained as the…… that give an exceptional recognition aspect to a product.

  1. visual icons
  2. good packaging
  3. brand
  4. Both ‘1’ and ‘2’
  5. None of the above

23. Product identification involves

  1. branding
  2. packaging
  3. labelling
  4. All of these
  5. None of these

24. Which of the following part of a brand can be spoken?

  1. Brand name
  2. Brand symbol
  3. Trade name
  4. Trade symbol
  5. None of these

25. Which of the following is the characteristic of a good brand name?

  1. Easy to pronounce
  2. Easy to remember
  3. Most descriptive in nature
  4. Easy to understand
  5. All of the above

26. Multiple packaging is the practice of placing

  1. several containers in one product
  2. several units in one container
  3. several boxes in one container
  4. each unit in each container
  5. None of the above

27. The package design of a bag of flour would most likely be criticised for being

  1. unsafe to the environment
  2. well suited for multiple unit packaging
  3. unsafe to the user
  4. functionally deficient
  5. All of the above

28. Characteristics of good packaging is

  1. convenient
  2. interesting
  3. attractive and protective
  4. All of the above
  5. None of the above

29. In packaging of a new line of fabric conditioner, Proctor and Gamble would be wise to avoid the use of which colour?

  1. Blue
  2. Black
  3. Pink
  4. Green
  5. Yellow

30. Which of the following may be known as the function of packaging?

  1. To assemble and arrange the content
  2. To facilitate transporting and storing
  3. To identify the content
  4. To enable the display of content
  5. All of the above

31. Marketers should view packaging as a major strategic tool, especially for

  1. consumer convenience products
  2. consumer shopping products
  3. industrial products
  4. speciality products
  5. None of the above

32. Good competition helps in [SBI Clerk 2012]

  1. improved customer service
  2. reduced sales
  3. improved brand image
  4. more market share
  5. better customer profde

33. The types of packaging includes

  1. family packaging
  2. reuse packaging
  3. multiple packaging
  4. All of the above
  5. None of the above

34. The warning label on a pack of cigarettees is included to

  1. promote the product
  2. satisfy legal requirements
  3. encourage the proper use of the product
  4. position the product as being socially responsible
  5. None of the above

35. A…….. provides written information about the product.

  1. branding
  2. packaging
  3. label
  4. costing
  5. None of these

36. Labelling is important for three reasons, first is promotional and second is legal. What is the third reason?

  1. Informational
  2. Branding
  3. Strategic
  4. Marketing
  5. None of the above

37. The label on a soft drink can reads ‘cool and refreshing’ For what reason are these words used?

  1. To promote the product
  2. To encourage multiple purchases
  3. To satisfy legal requirements
  4. To provide information
  5. All of the above

38. Labelling is important for informational legal and……. reasons.

  1. branding
  2. strategic
  3. marketing
  4. promotional
  5. All of these

39. The label on a pack of frozen pears says packed within an hour of picking. These words are used

  1. for promotional reasons
  2. to encourage multiple purchaser
  3. to satisfy legal requirements
  4. to provide information
  5. None of the above

40. Which of die following is indicated by labelling?

  1. Content
  2. Weight
  3. Measure
  4. Price
  5. All of these

41. Grade labels are identified by

  1. letter
  2. number
  3. quality
  4. All of these
  5. None of these

42. A companys ability to perform in one or more ways that competitors cannot or will not match is known as it [SBI Clerk 2012]

  1. brand image
  2. brand positioning
  3. competitive advantage
  4. attribute positioning
  5. attribute competion

43. A good brand can be built up by way of [SBI PO 2013]

  1. customer grievances
  2. break-down of IT support
  3. old age
  4. large number of products
  5. consistent offering of good services

Answer Key

Marketing Aptitude Study Material - Branding, Packaging & Labelling-key13

Marketing Aptitude Study Material – Marketing Research

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Marketing Aptitude Study Material – Marketing Research

Marketing Aptitude Study MaterialComputer AwarenessBanking Awareness

Marketing research has two words viz marketing and research. Marketing means buying and selling activities and research means a systematic and complete study of a problem done by experts. Thus, we can say that marketing research is a systematic method of collecting, recording and analyzing of data, which is used to solve marketing problems. It is a special branch and soul of marketing management. It is widely used by manufacturers, exporters, distributors and service organisations.

Characteristics of Marketing Research

  • Marketing research has a very wide scope which includes product research, packaging research, sales research, etc.
  • It is a scientific method of solving the marketing problems.
  • It is an important tool for decision-making.
  • It is a commercial intelligence-gathering activity.
  • It is a component of Marketing Information System (MIS).
  • It reduces the gap between the producers and the consumers.
  • It gives much importance to accurate data collection and its critical analysis.

Elements of Marketing Research

  •  Market research
  • Sales research
  • Product research
  • Packaging research
  • Advertising research
  • Business economic research
  • Export marketing research

Types of Marketing Research

  • Product analysis
  • Market analysis
  • Distribution analysis
  • Competition analysis
  • Consumer research
  • Sales analysis
  • Motivational research
  • Advertisement research

Methods of Marketing Research

Methods of marketing research used to collect data regarding marketing are as follows

  1. Questionnaire Method: This method is frequently used in quantitative marketing research and social research. They are a valuable method of collecting a wide range of information from a large number of individuals often referred to as respondents.
  2. Experimental Method: It is a research technique in which a researcher observes the results of changing on or more marketing variables, while keeping other variables. Experimentation involves establishing a controlled experiment or model that stimulates the real world marketing situation being investigated.
  3. Observation Method: Through this method, marketing specialists are able to identify actions and watch our subjects respond to various stimuli. For a small business, observational marketing research is one of the most simple ways that one can find out many things about their customers and clients.

Steps in Marketing Research

  • Define the problem and research objective.
  • Analysis of the problems.
  • Determine the information needed.
  • Determine the sources of information.
  • Decide the research methodology to be adopted.
  • Tabulate, analyse and interpret data.
  • Prepare the research report.
  • Follow up the study.

Needs of Marketing Research

  • Marketing research provides an opportunity to the enterprise to start the production of new product.
  • It explores new uses of the products of the enterprise.
  • It provides important information which help the enterprise in deciding its marketing policies, strategies and programme.
  • It helps the enterprise in the selection of particular channel of distribution for distributing its products.
  • It collects and analyses the data in respect of products and services offered by the competitors to the consumers.
  • It makes a thorough study of the demand of products of enterprise.
  • As marketing research helps in making sales forecasts, the enterprise can establish harmonious adjustment between demand and supply of its products.
  • It makes an intensive and extensive search of new markets for products of the enterprise.

Limitations of Marketing Research

  1. Marketing research is a process involving heavy expenditure. So, it can be adopted by the enterprise of large scale only.
  2. Marketing research is the process involving the need of sufficient time. If time is short the research scholar has to depend upon secondary data, the reliability of which is always doubtful.
  3. The success of marketing research depends to a great extent on the ability, efficiency and experience of research scholar.
  4. If the research scholar is biased to the problem, the results of such research will not be reliable and the purpose of marketing research cannot be served.

Rules to Use Marketing Research

Different rules to use marketing research are as follows

  1. Product: Search new products, their use and their properties.
  2. Consumer:  Search information about the consumers that who are they? Where do they reside? etc.
  3. Markets and their Ability: Study about the place and ability of the markets.
  4. Sales Policy: Study about the regional division.
  5. Packaging: Check the design and appropriate package.
  6. Dealers: Check the manners of their business.
  7. Officer: Gather facts about the position of a particular person.
  8. Competition: Decide about the weakness of the position of each competitor.

Tit-Bits 

  • Decision regarding product diversification can be taken after research of products and services.
  • No business and industrial enterprise can achieve its marketing objectives in the absence of advance research.
  • Low response rate is a problem associated with online surveys method.
  • Consumer analysis involves the detailed study of the popularity of product among consumers.
  • The research which is basically concerned with establishing cause and effect relationship, is called casual research.

Check Your Skills

1. Marketing research is a gift of

  1. modern concept of marketing
  2. classical concept of marketing
  3. traditional concept of marketing
  4. old concept of marketing
  5. basic concept of marketing

2. Small business houses cannot afford marketing research because of the

  1. limitation of money
  2. limitation of time
  3. limitation of skill
  4. limitation of bias
  5. None of these

3. Which of the following statements is true? [SBI Clerk 2008]

  1. Marketing makes the company to go into loss due to higher expenses
  2. Marketing is not required in profit-making companies
  3. Marketing sharpens the mind of the employees
  4. Marketing is a time-bound seasonal function
  5. Marketing is a waste of time

4. Marketing research is required for [SBI Clerk 2012]

  1. deciding sales volume
  2. eciding production level
  3. deciding marketing strategies
  4. deciding sales team numbers
  5. All of the above

5. What is one of the sources of collection of data?

  1. Internal
  2. External
  3. Traditional
  4. Both ‘1’ and ‘2’
  5. None of these

6. What is the limitation of marketing research?

  1. Limitation of money
  2. Limitation of time
  3. Limitation of skill
  4. Limitation of bias
  5. All of these

7. What is the decision that can be taken after research of products and services?

  1. Development of products
  2. Product diversification
  3. Product simplification
  4. Changes in product
  5. All of the above

8. Market research is necessary for [SBI Clerk 2011]

  1. making proper marketing decisions
  2. choosing the right products
  3. selecting the right sales persons
  4. All of the above
  5. None of the above

9. Research which relates to entire market is called

  1. market research
  2. field research
  3. product research
  4. taste research
  5. attitude research

10. What is the very first step of Marketing research?

  1. Define the problem
  2. Create the problem
  3. Solving the problem
  4. Analyse the problem
  5. None of these

11 ……. can adjust demand and supply of products of company.

  1. Planned production
  2. Non-planned production
  3. Total production
  4. Average production
  5. Marginal production

12. If marketing is done effectively which of the following is not required? [SBI Clerk 2008]

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

13. A companys own observational research produces what we cell primary data.

  1. False
  2. False in short run
  3. False in long run
  4. True
  5. True when primary data is collected

14. Comparative study is made by

  1. tabulation of data
  2. analysis of data
  3. preparation of data
  4. follow up
  5. All of the above

15. How production of new product helps enterprises?

  1. Capturing the market
  2. Loose the market
  3. Research the market
  4. Create the market
  5. Leave the market

16. As marketing managers and researchers define the problem and set research objectives, they should employe

  1. exploratory research alone
  2. casual research alone
  3. descriptive research alone
  4. All of the above combined
  5. None of the above

17. Market research is very necessary

  1. when new product is to be launched
  2. consumer behaviour
  3. packing
  4. campaign
  5. None of the above

18. Which concept signifies the importance of marketing research?

  1. Production of products
  2. New use of products
  3. Knowledge of demand
  4. Planned production
  5. All of the above

19. Market research is needed for [SBI Clerk 2008]

  1. deciding the market area
  2. deciding tlie right product to be sold
  3. making proper marketing decisions
  4. deciding right time to sell
  5. All of the above

20. No business and industrial enterprise can achieve its marketing objectives in the absence of

  1. marketing research
  2. product research
  3. consumer research
  4. simple research
  5. advance research

21. Name the concept which meant to study the satisfaction of customers.

  1. Research
  2. Research of products and services
  3. Research on markets
  4. Research on sales methods and policies
  5. None of the above

22. In general sense, marketing research is……. regarding goods and services.

  1. collection
  2. summary
  3. analysis of the data
  4. All of the above
  5. None of the above

23. Under which important researches, the product and services offered by competitors?

  1. Existence in competitive situation
  2. Existence in market
  3. Existence in product line
  4. Existence in product planning
  5. None of the above

24. What is the concept include in marketing research?

  1. Research of product and services
  2. Research on markets
  3. Research on sales
  4. Research on sales methods and policies
  5. None of the above

25. The main object of marketing research is to

  1. prepare market policies
  2. amend market policies
  3. prepare market strategies
  4. amend market strategies
  5. All of the above

26. The systematic gathering, recording and analysing of data with respect to a particular market is known as [SBI Clerk 2012]

  1. market share
  2. market segmentation
  3. market profile
  4. market research
  5. marketing research

27. Low response rate is a problem associated with which contact method?

  1. Personal interview
  2. Telephone
  3. Online surveys
  4. Mail
  5. None of these

28. Telephone interview offer

  1. speed in gathering data
  2. a low non response rate
  3. potential fox reaching all house holds
  4. the highest cost method for collecting data
  5. All of the above

29. Under which analysis study involves the detailed study of the popularity of product among consumers?

  1. Product analysis
  2. Market analysis
  3. Consumer analysis
  4. Competition analysis
  5. Sales analysis

30. The fields analysed under research on markets is to

  1. Study the nature of customers
  2. Study the habits of customers
  3. Study the tastes of customers
  4. Study the attitudes of customers
  5. All of the above

31. Second step in marketing research is

  1. situation analysis
  2. problem analysis
  3. collection of data
  4. tabulation of data
  5. All of these

32. Which research is meant to forecast the demand of products on the basis of analysis of markets?

  1. Research on product
  2. Research on market
  3. Research on policies
  4. Research on sales
  5. Research on consumers

33. Market survey means [SBI Clerk 2009]

  1. market research
  2. market plan
  3. marketing strategies
  4. market monitoring
  5. All of these

34. Which of the following researches is meant to study different aspects of sale in an enterprise?

  1. Research on sales methods and policies
  2. Research on sales market and policies
  3. Research on sales product and policies
  4. Research on customer and policies
  5. Research on sales advertisement and policies

35. Marketing research usually begins with gathering primary data.

  1. True in case of PSU’s
  2. True in case of EOU’s
  3. True
  4. False
  5. False in case of cottage industries

36. Research depends on

  1. data
  2. consumers
  3. market
  4. competitors
  5. product

37. Every company makes efforts to provide the goods and services to the consumer at

  1. right time
  2. right place
  3. as per their taste
  4. Both ‘1’ and ‘3’
  5. ‘1’ , ‘2’ and ‘3’

38. The aspect which is studied in research on sales methods and policies is

  1. classification of sales territories
  2. amendments in sale territories
  3. study of competitors sale territories
  4. development of new sale territories
  5. All of the above

39. Market research is useful for [SBl PO 2010]

  1. deciding proper marketing strategies
  2. deciding the selling price
  3. choosing the right products
  4. choosing the sales persons
  5. All of the above

40. Today’s market managers can never have too much information.

  1. True
  2. True in public limited companies
  3. True in cottage industries
  4. False when market is small
  5. False

41. Primary data possesses the advantage of being

  1. low cost as compared to secondary data
  2. available to any interested party to use
  3. free of interview bias
  4. relevant to the problem at hand
  5. All of the above

42. Which of the following is a type of research data?

  1. Complex
  2. Primary
  3. Secondary
  4. Traditional
  5. Both ‘2’ and ‘3’

43. The research which is basically concerned with establishing cause and effect relationship, is called [SBl Clerk 2008]

  1. diversified research
  2. technical research
  3. casual research
  4. predictive research
  5. exploratory research

44. Study of the different media of advertisement is called

  1. advertisement research
  2. product research
  3. market research
  4. potential research
  5. miscellaneous research

45. Consumers can be divided into different parts under consumer research on the basis of

  1. age
  2. sex
  3. education
  4. Income
  5. All of these

46. Distribution analysis analyse the problems of

  1. storage
  2. transportation
  3. advertisement
  4. sales promotion
  5. All of these

47. Wide publicity of new uses of product can

  1. create new market
  2. create new customer
  3. save tax
  4. make fraud dealings
  5. Both ‘1’ and ‘2’

48. Producers use to send their product to the customers with the help of

  1. doordarshan TV channel
  2. distribution channel
  3. midway channel
  4. market channel
  5. competitors channel

49. Which of the following studies analyse the nature of customers?

  1. Important information about customers
  2. Important information about market
  3. Important information about product
  4. Important information about competitors
  5. Important information about government

50. Which of the following is a type of analysis included in marketing research?

  1. Product analysis
  2. Market analysis
  3. Distribution analysis
  4. Competition analysis
  5. All of the above

Answer Key

Marketing Aptitude Study Material - Marketing Research-key14

Marketing Aptitude Study Material – Sales Promotion

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Marketing Aptitude Study Material – Sales Promotion

Marketing Aptitude Study MaterialComputer AwarenessBanking Awareness

Promotion

Promotion is one of the primary elements used in the marketing mix. As a key marketing element, promotion comprises communication tactics used to educate consumers, increase demand and differentiate brands.

“Promotion is the means by which firms attempt to inform, persuade and remind consumers-directly or indirectly about the products and brands they sell. ”                        —Kotler and Keller

Objectives of Promotion

  • To inform people about particular issues.
  • To introduce new products to the market.
  • To compete with competitors products.
  • To improve the company/brand image.
  • To increase sales.

Importance of Promotion

  •  It can boost sales during the year when sales are traditionally low (encourage off season purchases).
  • It encourages people to try a product.
  •  It encourages people to buy a product or the product in greater quantities.
  • It encourages people to buy a product instead of competitors products.

Promotion Mix 

Promotion mix is a specific combination of promotional methods used for one product or a family of products. In other words, promotion mix refers to combination of promotional tools used by an organisation to achieve its communication objectives.

Elements of Promotion Mix

The main elements of promotion mix are

  1.  Advertising: Advertising communicates a message to a targeted a audience and generates feedback in the form of a sale.
  2. Personal Selling: Marketing impacts personal selling and improves the selling environment by increasing exposure to potential customers.
  3. Sales Promotion: It stimulates market demand, product availability and coordinates public selling, advertising and public relations.
  4. Public Relations: It is the management of a message between an individual or organisation and the public.
  5. Social Media: It is versatile, far-reaching, fast, inexpensive, fosters brand awareness and can improve customer service.
  6. Direct Marketing: It goes direct to customer via telephone, mail, fax, etc.

Factors Affecting Promotion Mix

  • Budget available
  • Stages in product life cycle
  • Type of product
  • Type of purchase decision
  • Target market characteristics
  • Consumer s readiness to purchese
  • Consumers preferences for media
  • Regulations
  • Competitors
  • Availability of media
  • Push vs Pull strategy

Sales Promotion

Sales promotion is one level or type of marketing, aimed either at the consumer or at the distribution channel (in the form of sales-incentives). It is used to introduce new product, clear out inventories, attract traffic and to increase sales temporarily.

The sales promotion targeted at the consumer is called consumer sales promotion. The sales promotion targeted at the retailers and wholesalers is called trade sales promotion.

Objectives of Sales Promotion

Some of the objectives of sales promotion are listed below

  • Information to Customers: Sales promotion activities inform the potential buyers about the availability, features, use, etc of the product. Thus, it offers additional support to promotional activities like advertising, publicity and personal selling.
  • Persuades Customers: Sales promotion activities aim at arousing customers interest in the products and persuading them to buy them.
  • Increase in Sales Volume: The sales promotion schemes are a big help in boosting off-season sales and also in tempting the buyers to make quick decisions to purchase.
  • Incentive to Retailers: The main objective of sales promotional activities is to offer promotional support to retailers. Incentive schemes help product in getting shelf-space for them in new retail outlets.
  • Create Product Identity: Under Sales Promotion Programme, product identity is established by offering additional features and incentives for that particular product. This helps in building consumers preference for the specific products and brands.

Characteristics of Sales Promotion

Characteristics of sales promotion are as follows

  1. Attractiveness: This is the degree to which the consumer perceives the promotion as being desirable.
  2. Fit to Product Category: A promotion which has no relationship with the product is less likely to appeal to customers.
  3. Reception delay: If the promotional gift or discount will not arrive for sometime, it is less attractive.
  4. Value: High value promotions work better than low value ones, but it is the value as perceived by the customer which is important.

Importance of Sales Promotion

  • It helps to increase sales in a competitive market and thus, increases profits.
  • It helps to introduce new products in the market by drawing the attention of potential customers.
  • When a new product is introduced or there is a change of fashion or taste of consumers, existing stocks can be quickly disposed off.
  • It stabilizes sales volume by keeping its customers with them.
  • The consumer gets the product at a cheaper rate.
  • It gives financial benefit to the customers by way of providing prizes and sending them to visit different places.
  • The consumer gets all information about the quality, features and uses of different products.

Difference between Advertising and Sales Promotion

Basis Advertising Sales Promotion
Objectives Objective of advertising is to create a favourable consideration for the product. Objective of sales promotion is to stimulate the consumers to buy the product.
Effect It has a long-term effect. It has a short-term effect and useful for increasing immediate sales.
Nature Advertising is recurring in nature. It is non-recurring and one time communication process.
Price Expensive in most cases. Not very expensive in most cases.
Suitable for Medium to large companies. Small to large companies.
Sales Assumption that it will lead to sales. Directly related to sales.
Purpose Increase sales, brand building. Increase sales.
Example Giving an advertisement in the newspaper about the major products of a company. Giving free products, coupons, etc.

Elements of Sales Promotion

  • It is a part of promotional mix.
  • It is an art and science both.
  • It is a different form of advertising.
  • It is a different form of personal selling.
  • It contributes to selling.

Merits of Sales Promotion

  1. Sales promotion is always very useful in new product launch.
  2. Sales promotion activities are designed to supplement the personal selling and advertising efforts used by a firm.
  3. Sales promotion activities attract attention of the people because of the use of incentives.
  4. Sales promotion activities induce people to break away from their regular buying behaviour and try the new product.

Demerits of Sales Promotion

  1. Frequently promoted brands in the product category, especially on the basis of price, make consumers and traders more price sensitive, not only for the promoted brand, but for other brands as well in the same product category.
  2. Sometimes, use of sales promotion tools may affect image of a product. Consumer may start suspecting that perhaps the product has not been selling well or think that the product has become outdated.
  3. Sales promotions are generally for a short duration. Sometimes, it has negative effects on long term future of the organisation. Promotions generally build short-term sales volume which is not maintained.

Tit – Bits

  • Marketing communication mix involves personal selling and advertising, sales promotion, public relation, publicity.
  • DSA stands for Direct Selling Agent. A DSA is required to be adopt in communication skills.
  • Telemarketing campaigns are resorted to avoid face-to-face interactions.
  • A ‘lead’ means an interested buyer.
  • A cold call means calls made without prior appointment
  • Sales process begins with lead generation.
  • The meaning of conversion’ in terms of sales is converting perspective customers into purchasers.

Check Your Skills

1. Effective selling skills depends on [SBI PO 2013; PNB Clerk 2010]

  1. number of languages known to the DSA
  2. data on marketing staff
  3. information regarding IT market
  4. knowledge of related markets
  5. ability to talk fast

2. Which of the following is are examples of the popular sales promotion activities?

  1. Buy one get one free
  2. Customer relationship management
  3. Merchandising
  4. Free samples
  5. All of the above

3. Leads can be best sourced from [SBI PO 2013]

  1. foreign customer
  2. yellow pages
  3. dictionary
  4. list of vendors
  5. local supply chains

4. A Direct Selling Agent (DSA) is required to be adopt in [SBI PO 2013]

  1. surrogats marketing
  2. training skills
  3. communication skills
  4. market research
  5. OTC marketing

5. Sales promotion may be effective, when ……. techniques are used.

  1. advertising and salesmanship
  2. pricing
  3. BEP
  4. EOQ
  5. All of the above

6. Post-sales activites include [SBI PO 2013]

  1. sales presentation
  2. customer feedback
  3. customer identification
  4. customer apathy
  5. product design

7. ‘Benchmark’ mean [SBI Steno 2012; PNB Clerk 2009]

  1. sales performance measurement
  2. marks given to sales perosns
  3. appraisal
  4. standard value for comparison
  5. automation

8. Communication skills in the case of a DSA means [SBI Steno 2012]

  1. giving lengthy speeches
  2. sending good SMS messages
  3. being talkative
  4. ability to convince the customer with the right choice of works
  5. being multi linguist

9. The sales promotion targeted at the consumer is called

  1. consumer sales promotion
  2. trade sales promotion
  3. retailer sales promotion
  4. wholesaler sales promotion
  5. None of the above

10. Effective communication skills are not required in marketing if

  1. demand exceeds supply
  2. supply exceeds demand
  3. buyer is illiterate
  4. seller is illiterate
  5. None of the above

11. The sales promotion can be directed at

  1. customer
  2. sales staff
  3. distribution channel members
  4. AH of the above
  5. None of the above

12. Free samples are given to consumers to

  1. introduce a new product
  2. expand the market
  3. Both ‘1’ and ‘2’
  4. target the profit
  5. target the market

13. Direct marketing means [SBI, steno 2o12]

  1. seminars and conferences
  2. face-to-face selling
  3. banners
  4. cold calls
  5. sales presentations

14. The sales promotion targeted at the retailers and wholesalers is called

  1. consumer sales promotion
  2. users sales promotion
  3. primary sales promotion
  4. trade sales promotion
  5. tertiary sales promotion

15. The most essential quality of a good sales person is [SBI Steno 2012]

  1. questioning skills
  2. good appearance
  3. production skills
  4. good communication
  5. curiosity

16. Which is the benefit of sales promotion?

  1. Thrill in life due to contests
  2. Skill development of the users
  3. Low price product
  4. Social life changed
  5. All of the above

17. After sales, service is not the job of [SBI Clerk 2009]

  1. marketing staff
  2. sales persons
  3. directors of the company
  4. employees of the company
  5. All of the above are false

18. A DSA’s (Direct Selling Agents) main job is [SBI Steno 2012]

  1. to design products
  2. to sell to the target group
  3. to do market survey
  4. to distribute profits
  5. to earn incentives

19. Telemarketing campaigns as are resorted to [SBI Steno 2012]

  1. avoid face-to-face interactions
  2. avoid ‘buyer resistance’
  3. reach a larger clientele
  4. increase cold calls
  5. reduce profits

20. A ‘lead’ means [SBI Steno 2012; PNB Clerk 2009; SBI Clerk 2008]

  1. a leash
  2. a leader
  3. an interested buyer
  4. a DSA
  5. a cold call

21.The aspects of the promotional mix include

  1. advertising
  2. personal selling
  3. publicity
  4. sales promotion
  5. All of these

22. The consumer sales promotion technique includes

  1. price deal
  2. loyal reward programme
  3. cents-off deal
  4. price pack deal
  5. All of the above

23. One of the following is not required in a good sales person. Find the same [SBI Recruit 2012]

  1. sympathetic approach
  2. good communication skills
  3. courteous nature
  4. persuasion skills
  5. perseverance

24. A cold call means [SBI Steno 2012; SBI Clerk 2008]

  1. a futile exercise
  2. calls made in cold countries
  3. sales talk
  4. old product with new wrapping
  5. calls made without prior appointment

25. An audio or video advertising announcement usually presented on television, radio or in a movie theater is called [SBI Clerk 2012]

  1. publicity
  2. creative
  3. banner
  4. sponsorship
  5. commercial

26. The trade sales promotion technique include

  1. trade allowance
  2. dealer loader
  3. trade contest
  4. push money
  5. All of these

27. Sales promotion devices for sales force is are

  1. more commission for more selling
  2. bonus
  3. contests
  4. All of the above
  5. None of the above

28. Major consumer promotion tools are

  1. samples
  2. coupons
  3. cash refund offers
  4. Premiums
  5. All of these

29. Inviting prospective purchasers to try the product without cost in the hope that they will buy is known as

  1. patronage awards
  2. free trials prizes
  3. price packs
  4. None of these

30. Full form of DSA is [SBI Clerk 2011; PNB Clerk 2010]

  1. Delivery Staff Agency
  2. Direct Selling Agent
  3. Direct Supplier Agent
  4. Distribution and Supply Age
  5. Driving Sales Ahead

31. The meaning of‘conversion’ in terms of sales is [SBI Clerk 2011]

  1. designing new products
  2. converting purchaser into sellers
  3. converting sellers into purchasers
  4. converting perspective customers into purchasers
  5. conversion of religion

32. Sales promotion means

  1. any steps that are taken for the purpose of obtaining or increasing sales
  2. pricing
  3. profit
  4. production cost
  5. loss

33. The sales process begins with [SBI Clerk 2011]

  1. customer identification
  2. lead generation
  3. sales presentation
  4. sales closure
  5. sales meet

34. Marketing communication mix involves

  1. personal selling and advertising
  2. sales promotion
  3. public relation
  4. publicity
  5. All of the above

35. Which of the following is are example of the popular sales promotion activities?

  1. Vouchers and coupons
  2. Joint promotions
  3. Discounted price
  4. Free gifts
  5. All of the above

36. Find the correct sentence. [PNB Clerk 2010]

  1. higher the price, higher are the sales
  2. more sales persons lead to more sales
  3. mission statement is part of a Market Plan
  4. better sales incentives means better performance
  5. all customers are profitable customers

37. Which is are the functions of sales promotion?

  1. Stimulation of consumers
  2. Help to middlemen
  3. Aid to salesmen
  4. All of the above
  5. None of the above

38. Which of the following is are the objective of sales promotion?

  1. Information to consumers
  2. Increase in sales volume
  3. Creating product identity
  4. All of the above
  5. None of the above

39. The objectives of promotion are to inform persuade or remind consumers of the companys

  1. wage and salary administration
  2. marketing mix
  3. product mix
  4. style
  5. gift

40. Promotion in marketing means [SBl Clerk 2009]

  1. passing an examination
  2. elevation from one one grade to another
  3. selling the products through various means
  4. selling the product in specific area
  5. All of the above

41. Promotion encompasses all the tools in the marketing mix whose major role is

  1. research and development
  2. persuasive communication
  3. market
  4. sales
  5. gift

42. Which is are tools of sales promotion?

  1. Bonus
  2. Coupon
  3. Premium
  4. Additional commission or purchase allowance
  5. All of the above

43. Which of the following is one of the four aspects of promotional mix?

  1. Sales promotion
  2. Sales planning
  3. Sales forecasting
  4. Sales strategy
  5. None of the above

44. A presentation means [PNB PO 2009]

  1. display of products
  2. explaining the utility of products
  3. a gift
  4. display of communication skills
  5. All of the above

45. The sequence of a sales process is [PNB Clerk 2009]

  1. a call, a lead, presentation and sale
  2. a lead, a call, presentation and sale
  3. presentation, sale, lead and call
  4. presentation, lead, sale and call
  5. sale, call, lead and presentation

46. Value added services means [SBl PO 2013, 12, 10, 09; SBl Clerk 2011; PNB Clerk 2009]

  1. additional cost
  2. additional production
  3. additional staff
  4. additional services
  5. All of the above

47. Find the incorrect option. It sales promotion involves [SBl PO 2009]

  1. building product awareness
  2. creating interest
  3. providing information
  4. designing new products
  5. None of the above

48. Source of sales leads are [SBl Clerk 2009]

  1. date mining
  2. market research
  3. media outlets
  4. promotional programs
  5. All of the above

49. Effective selling skills depend on [SBl Clerk 2012]

  1. good dress sense
  2. territory allocation
  3. sales call planning
  4. good eye contact
  5. pat performance

50. The performance of a sales person depends on [SBI Clerk 2012]

  1. ability and willingness of the sales person
  2. incentive paid
  3. size of the sales team
  4. team leaders attitude
  5. his aggressive nature

51. Good public relations indicate [PNB Clerk 2009]

  1. improved marketing skills
  2. improved brand image
  3. improved customer service
  4. All of the above
  5. None of the above

52. Team building is required [SBI Clerk 2009]

  1. only for lead generation
  2. only for after sales service
  3. for cross selling
  4. All of the above
  5. None of the above

53. The performance of a salesperson can be enhanced by [SBI Clerk 2009]

  1. increasing the sales incentives
  2. increasing the number of products to be sold
  3. appropriate training
  4. All of the above
  5. None of the above

Answer Key

Marketing Aptitude Study Material - Sales Promotion-key12

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