SMB106 WB

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AN INTRODUCTION TO DIFFERENTIATED LEARNING TOOLS
Participants in flexible learning programs have limitations on the nature of the

time they can spend on learning. Typically they are employed fully or partially,
pursuing higher studies or have other social and familial responsibilities.
Availability of time is a great constraint to these students.
To aid the participants, we have developed four unique learning tools as below:
 Bullet Notes : Helps in introducing the important concepts in each unit
of curriculum, equip the student during preparation of examinations and
placement interviews
 Case Studies : Illustrate the concepts through real life experiences
 Workbook : Helps absorption of learning through questions based on real life nuggets
 PEP Notes : Sharing notes of practices and experiences in the Industry will help the student
to rightly perceive and get inspired to learn concepts at the cutting edge
application level.
Why are these needed?
 Adults learn differently from B. School or college going
students who spend long hours at campus.
 Enhancing analytical skills through application related learning
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kits trigger experiential learning
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 Availability of time is a challenge.
 Career success increasingly depends on continuous learning
and success
What makes it relevant?

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 Practitioners can use their real life knowledge and skill to enhance learning skills.
 Immediate visualization of the practical dimension of the concept will offer a rich learning
experience.
How is it useful?
 Through these tools, the learning bytes are right sized for ease of learning for time challenged
participants.
 The content starts from practice and connect to precept making it easy to connect to industry
and retain.
 They can be connected to continuous assessment process of the academic program.
Where does this lead to?
 Helps stay motivated and connected.
 Easier to move ahead in the learning process.
 Will facilitate the student to complete the program earlier than
otherwise.
When is it useful?
 As and when you get 5 to 10 minutes you can read one of these and absorb and comprehend.
Spending more time is your choice.
 You can use the time in travel, waiting for meetings, lunch time, small breaks or at home
usefully.
Marketing
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Management
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Workbook
© The ICFAI Foundation for Higher Education (IFHE), Hyderabad,
May, 2015. All rights reserved
No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or
transmitted in any form or by any means – electronic, mechanical, photocopying or otherwise – without
prior permission in writing from The ICFAI Foundation for Higher Education (IFHE), Hyderabad.
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Ref. No. MM-WB-IFHE – 052015
For any clarification regarding this book, the students may please write to The ICFAI Foundation for Higher
Education (IFHE), Hyderabad giving the above reference number of this book specifying chapter and page
number.
While every possible care has been taken in type-setting and printing this book, The ICFAI Foundation for
Higher Education (IFHE), Hyderabad welcomes suggestions from students for improvement in future
editions.
Our E-mail ID: cwfeedback@icfaiuniversity.in
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INTRODUCTION
Participants in ICFAI University Programs are eager to learn more from practice. They realize that
application orientation can enhance their learning and subsequent usage of management precepts and
practices. Picking out the principle behind real world events is critical to this learning, as also identifying the
alternative/solution using the principle. Towards this end the institution has reengineered the Workbook.
The Workbook is a set of questions which typically illustrate a real life context from contemporary
corporate happenings and then poses a question to the student for reflection. The narration of question helps
the reader to reinforce the concept and facilitates the student to enhance his/her capabilities in analyzing and
interpreting the conceptual frameworks.
The examples depicting the names of existing persons or companies are taken from news clippings/
published articles from various public domain websites or website of respective companies. Since live
examples reinforce the understanding of the students, the possible responses are connected to the concepts
taught directly or indirectly. In many cases the alternatives provided are choices in a work situation based on
alternative approaches.
These questions provoke the learner to start thinking from the application side and connect to the knowledge
that he will use to solve. Practitioners can connect better thereby improving the learning experience. This
form of assessment improves learning while assessing whereas the conventional form is more about
assessment of learning.
The learning outcomes expected are:

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1. The examples are linked back to application of theoretical knowledge in the illustrated real-time
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situation. This facilitates the student to develop analytical approach in similar or related situations.
2. Application based approach which enhances absorption and retention significantly.
3. Exposure to the current incidences and situations in relation to important concepts of the subject.
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The Workbook format is also used for Assessment.
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DETAILED CURRICULUM
UNIT 1: MARKETING: THE DEVELOPMENT OF A CONCEPT
Definition of Marketing - Evolution of Marketing: Marketing Concept – Customer orientation, Long term
profitability, Functional integration; Societal Marketing Concept (SMC) –Holistic marketing, Marketing 3.0,
Marketing Dynamics: Company Responses and Adjustments, Marketer Response and Adjustments –
Customization, Building a good relationship with customers, Target marketing, Customer database,
integrated marketing communication - Significance of Marketing : The Airline Industry – Marketing of
Airlines, Marketing Strategies; The Banking Industry – Definition of Bank Marketing, Banks and
Marketing; The Education Industry – Marketing of Education, Marketing strategy.
UNIT 2: DELIVERING CUSTOMER VALUES AND SATISFACTION
Business Components: Stakeholders, Processes, Resources, Organization - Customer Satisfaction- Concept

of Value: Value Chain, Providing Value-cost Balance, Value Delivery System - Attracting and Retaining
Customers: Attracting Customers, Cost of Losing a Customer, Need for Retention – Increased revenue,
Decrease in cost of selling, Advertising, Cross selling possibilities, structural ties - Customer Profitability –
Customer equity, Relationship Marketing, Internal marketing.
UNIT 3: MARKETING ENVIRONMENT I

Competitive Forces: Monopoly, Oligopoly, Monopolistic competition, Pure competition – Monitoring
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competition –Intellectual property rights, Laws affecting marketing/promotional decisions, Macro Economic
Factors: Demographic Environment, Consumer Groups - Age-wise Classification: Infants, Children (school
going-teens), Young Adults (19-30 years), Adults, Senior Citizens; Other demographic variables – Women,
Singles, Occupation and Literacy, Location, Cultural diversity; Political Environment – Domestic Politics,
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International Politics Economic Environment – General Economy, Business Cycle, Buying Power,
Willingness to Spend, Socio Cultural Forces, Technology, Impact of Technology Natural Environment;
Legal Environment – Consumer protection Act, State Regulatory Agencies, Non-government Regulatory
Agencies - Indian Business Environment and MNCs in India.
UNIT 4: MARKETING BUDGETS AND COSTS
Marketing Cost Analysis: Importance of Marketing Cost Analysis, Steps in Marketing Cost Analysis, Full
Cost versus Contribution Margin Approach - Customer Profitability Analysis: Steps in Customer
Profitability Analysis, Financial Situation Analysis, Contribution Analysis - Budgeting for the Sales Force
Department - Production and Efficiency: Learning Effect and Experience Curve, Economies of Scale.
UNIT 5: UNDERSTANDING CONSUMER BUYING BEHAVIOR
Factors Influencing Consumer Buying Behavior: Cultural Factors – Culture, Subculture, Social Class-Upper
Class, Upper middle class, Middle class, Lower class - Social Factors: Reference Groups, Family - Indian
consumer, Indian rural vs. urban consumer, Personal Factors - Age and Lifecycle Changes, Occupation and
Financial Status, Life Style; Psychological Factors –Motivation, Perceptions, Beliefs and Attitudes - Buying
Decisions: Buying Roles, Buying behavior – Extensive problem solving behavior, routinized buying
behavior, Variety seeking behavior - Buying Decision Process - Problem Recognition - Information Search -
Evaluation of Alternatives - Purchase Decision - Post Purchase Behavior, Cognitive Dissonance.
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UNIT 6: ORGANIZATIONAL MARKETS AND ORGANIZATIONAL BUYING BEHAVIOR
Concept of Organizational Buying – Difference between organizational markets and consumer markets,
Types of organizational buying situations and situational factors- New task, Modified re-buy, Straight re-
buy, organizational markets in India – Chemical and Pharmaceutical Sector, Energy and natural resources,
Industrial and automotive sector - Dimensions of Organizational Buying - Classification of Organizational
Markets: Producers’ markets, Resellers markets, Government markets, Institutional markets - Factors
Influencing Organizational Buying, Environmental Factors, Organizational Factors, Social Factors, Personal
Factors - Participants in Organizational Buying: Initiators, Influencers, Users, Deciders, Approvers,
Gatekeepers- Procurement Process: Buying, Supply Management Orientation - Stages of Buying: Problem
Recognition, General Need Recognition, Product Specification, Searching for Potential Suppliers, Value
Analysis, Vendor Analysis, Order Routine Specification, Multiple Sourcing, Performance Review.
UNIT 7: MARKETING RESEARCH, MKIS, AND DEMAND FORECASTING
Meaning and Scope of Marketing Research - The Marketing Research Process: Formulating the Problem,
Developing Objectives of the Research, Designing an Effective Research Plan: Research Instruments –
Questionnaire, Mechanical Instruments, Sampling, Date Collection Techniques: Primary date collection –
Mail interviews, Telephonic interviews, Personal interview, Observation, Secondary date collection,
Evaluating the Data and Preparing a Research Report - Meaning and Scope of Marketing Information
System (MkIS): MkIS Components –Internal record System: Order to payment scale, Sales reporting
system; Marketing intelligence system, Marketing decision support system - Demand Forecast and
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Measurement: Market Classification: Potential market, Available market, qualified available market, Target
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market - The Concept of Market Demand for Marketing: Company Demand, Company Sales Forecast, Sales
Quota and Sales Budget, Current Demand Estimation - Future Demand Estimation: Composite sales force
opinion, Survey of buyer intentions, Expert opinion, Past sales analysis, Exponential smoothing, Statistical
demand analysis, Econometric analysis, Test marketing method.
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UNIT 8: MARKET SEGMENTATION AND MARKET TARGETING
Need for Segmenting Markets - Market Segmentation Levels: Segment Marketing, Individual Marketing,
Niche Marketing, Local Marketing - The Selection of Segmentation Variables: Criteria for segmenting
consumer, Geographic segmentation, Demographic segmentation, Age and life cycle stage, Gender, Income,
Generation, Social class, Psychographic segmentation, Lifestyle, Personality, Values, Behavioral
segmentation, Occasions, Benefits, Usage rate, Loyalty status, Buyer-readiness stage, Attitude, Multi-
attribute segmentation, Criteria for segmenting organizational markets, Demographics, Industry, Company
size, Customer location, Operating variables, Company technology, Produce and brand use status, Customer
capabilities, Purchasing approaches, Situational factors, Urgency of order fulfilment, Product application ,
Size of the order, Personal characteristics of the purchasers - Effective Segmentation: Characteristics in
segmentation- Measurable, Substantial, Accessible, Differentiable, Actionable - Target Market Selection
Process: Evaluating the market segments, Selecting the market segments, Single segment concentration,
Selective specialization, Product specialization, Market specialization, Full market coverage, Other
considerations – Ethical choice of market targets, Segment interrelationships and super segments, Segment-
by-segment invasion plans, Inter-segment cooperation.
UNIT 9: STRATEGIC PLANNING PROCESS IN MARKETING
Defining Strategic Market Planning - Corporate and Divisional Strategic Planning: Corporate Mission,
Establishment of SBUs, Resource Allocation: BCG competitive advantage matrix, General electric model,
Planning new Businesses and Downsizing Existing businesses: Intensive growth, Integrative growth,
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Diversification growth, Downsizing older businesses - Strategic Business Planning: Steps in Preparing
Strategic Business Plan; Stages in Business plan – Business Mission, SWOT Analysis, Strategies, Strategic
alliances, Implementation, Feedback and control - Marketing Process: Value delivery sequence – Focus on
product, Focus on customer - Steps in the Planning Process – Analyzing marketing opportunities, developing
marketing strategies, planning marketing programs, Managing the marketing effort - Marketing Plan:
functions – Content, Executive summary, Opportunity and issue analysis, Marketing strategy, Action
programs, Projected profit and loss statement, Control.
UNIT 10: MARKETING AND COMPETITIVE STRATEGIES
The Concept of Competitive Advantage - Porter’s Five Forces Model: Barriers to Entry/Threat of New
Entrants, Intensity of Rivalry among Firms, Threat of Substitutes, Bargaining Power of Buyers, Bargaining
Power of Suppliers - Analysis of Competitors: Classes of Competitors – Generic competition, Firm
competition, Industry competition, Brand competition, Identifying Competition; Analyzing Competition,
Strategies, Objectives, Strengths and Weaknesses, Reaction Patterns - Porter’s Generic Competitive
Strategies: Cost Leadership Strategy, Differentiation Strategy, Focus Strategy, Generic Strategy Mix -
Designing Competitive Strategies: Market Leader Strategies, Market Challenger Strategies, Market Follower
Strategies, Market Niche Strategies, marketing strategies during economic downturn, Competitive
Intelligence System: Setting Up the System, Data Collection, Analysis and Evaluation of Data, Information
Communication and Response - Total Quality Management (TQM).
UNIT 11: PRODUCT AND PRODUCT PORTFOLIO

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Product Personality: Core features, Associated features; Nature of the Product – Generic product, Expected
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product, Augmented product, Potential product; Product Hierarchy - Product Classification: Durability and
Tangibility – Durables, Non-durables, Services, Usage: Consumer products, Shopping products, Specialty
products, Unsought products, Industrial Products: Raw material, Component parts, Process material, Support
products, Capital equipment: Accessory equipment, Consumable supplies, Business services - Product
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Policy: Product mix, Product Mix Strategies – Expansion of product mix, contraction of product mix,
Altering existing products, positioning the product, Trading up, Trading down Managing product lines:
Product line analysis, Product line length, Line stretching, Line filling, Product line modernization, Product
line pruning, Reasons for line extension, Limitations of line extension - Product Life Cycle: Introduction,
Strategies for introduction stage – Rapid skimming, Slow skimming, Rapid penetration, Slow penetrations;
Growth, Maturity, Decline.
UNIT 12: PRODUCT DIFFERENTIATIONS AND POSITIONING
Product Differentiation: Product Form, Design, Features, Product Quality, Durability, Size of Package -
Service Differentiation: Ordering Ease, Delivery, Installation, Guarantees, Financial Arrangement, Customer
Training, Maintenance and Repair, Disposal - Personnel Differentiation - Channel Differentiation - Image
Differentiation: Company’s Management, Symbols, Logos, Atmosphere, Events - Positioning: Getting into
the Mind of the Consumer, Positioning of a Leader, Positioning of a Follower, The Power of a Name,
Pitfalls in Positioning.
UNIT 13: NEW PRODUCT DEVELOPMENT
Challenges in New Product Development - Organizing the Product Development Process: Product
Managers, Product Committees, Product Departments, Product Venture Teams - Stages of New Product
Development: Idea Generation, Idea Screening, Concept Testing and Analysis- Business analysis, Total
sales estimation, Estimating costs and profits, Product Development, Test Marketing, Commercialization.
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UNIT 14: BRANDING AND PACKAGING
Brand as a Concept and its Significance: Value and Significance of a Brand - Types of Brands and their
challenges: Manufacturers’ brand, Private brands, Generic brands, Brand challenges - Brand Equity:
Selection of a Brand Name, Brand equity models, Measuring brand equity - Brand Sponsorship - Brand
Strategy Decision: Line Extension, Brand Extension, Brand Rejuvenation, Brand Relaunch, Brand
Proliferation, Multi-brands, New Brand Name, Co Brands - New Developments in Brand Management -
Packaging and its Importance in Marketing: Importance of Packaging in Marketing, Packaging and
Marketing Strategies, Innovations in packaging, -Labeling: Universal Product Codes.
UNIT 15: PRICING AND MARKETING
Significance and Importance of Price to a Marketer - Price and Non Price Competition - The Process of
Product/Service Pricing: Setting pricing objectives- Survival, Profit, Market Share, Status quo, Product
Quality - Analyzing competitor’s pricing - The selection of a pricing method – Mark-up pricing, Target
return pricing, Perceived value pricing, Going rate pricing, Sealed bid pricing, Differentiated pricing, Value
pricing, Market Skimming, Dynamic pricing, - The Selection of pricing policy: Psychological pricing,
Transfer pricing - Approaches to Price Adjustment: Geographical pricing, Promotional pricing,
Discriminatory pricing, Discounts and allowances-Seasonal discounts, Cash discounts, Quantity discounts,
Trade discounts, Experience curve pricing, Product mix pricing – Product line pricing, Optional feature
pricing, Captive product pricing, Two-part pricing, By-product pricing, Product Bundling Pricing, Pricing
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techniques of Online retailers - Effects of Price Changes: Buyers’ perceptions on the price changes,
Competitors’ reactions.
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UNIT 16: CHANNELS OF MARKETING
Nature of Marketing Channels -Role of Marketing Channels: Channel flow, Channel levels, Service Sector
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Channels - Functions of Marketing Channels: Facilitating the Exchange Process, Alleviating Discrepancies-
Steps in Regrouping - Sorting , Accumulating, Allocating, Assorting, Standardizing Transactions, Matching
Buyers and Sellers, Providing Customer Service - Designing Distribution Channels: Analyzing Customer
Expectations of Service Output, Lot Size Utility, Convenience Utility, Selection Utility, Service Utility,
Formulating Objectives, Evaluation of Distribution Environment, Evaluating Channel Alternatives,
Economic Criteria, Control Criteria, Adaptive Criteria - Channel Management: Channel Member Selection,
Channel Member’s Training, Member Motivation and Evaluation, Modifying Channel Arrangement, Legal
and Ethical Issues in Channel Management - Channel Dynamics: Horizontal Marketing System, Vertical
Marketing System (VMS), Corporate VMS, Administered VMS, Contractual VMS - Multi-Channel
Marketing System - Channelsand Conflicts: Types of Channel Conflicts, Causes of Channel Conflicts,
Managing Channel Conflicts.
UNIT 17: LOGISTICS AND WHOLESALING
Objectives of Marketing Logistics: Delivering customer service, Reducing total distribution, Reducing cycle
time - Market Logistic Decisions: Order processing, Inventory management- Reorder point, Order lead time,
Safety stock, Economic order quantity, Just-in-time, Fixed order interval system; Transportation - Functions
of Warehousing - Strategic Issues in Managing Logistics - Growth of Wholesaling - Classification of
Wholesalers: Merchant wholesalers, Agents and Brokers, Manufacturers’ sales branches and offices -
Market Decision: Target market, Price, Promotion, Place - Changing Patterns in Wholesaling: Wholesale
consolidation, Productivity and quality, Global expansion.
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UNIT 18: RETAILING
Types of Retailers: Ownership, The number of Product Lines Handled, Specialty Stores, Department Stores,
Discount Stores, Super markets, Retailing Based on the Service vs. Goods Retail Strategy Mix, Non-Store
Based Retailing, Direct Selling, Direct Marketing, Automatic Vending, Implications of Merchandising -
Franchising: Types of Franchising – Product distribution franchise, Business format franchise, Trade name
franchise, Advantages and disadvantages of Franchising – Advantages to the Franchiser, Disadvantages to a
Franchiser, Advantages to a Franchisee, Disadvantages to a Franchisee - Strategic issues in Retailing:
Location, Store Image Decisions - Market Decisions: Product Assortment and Procurement, Service Mix and
Retailing Environment, Place Promotion, Private label - Global Trends in Retailing - Trends in Retailing in
India.
UNIT 19: COMMUNICATION MIX IN MARKETING
Communication and Promotion Process: The Communication Process – Communication source, Receiver,
Coding process, medium of transmission, Decoding process, Noise, Feedback - Types of Communication
Channels: Personal Channels, Non-personal channels - Promotional Tools: Advertising, Sales promotion,
Publicity, Public relations, Personal selling, Direct marketing, Integrated marketing communication (IMC) -
Developing a Communication Program: Target audience identification, Determination of communication
objectives – Awareness, Knowledge, Liking, Preference, Conviction, Purchase, Stimulate demand;
Developing marketing communication budget – Objective and task method, Competitive parity method,
Affordable method Factors influencing the designing of communication message: Message content –
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Rational appeal, Emotional appeal, Moral appeal, Format, Source - Marketing Communication Mix: Product
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market type, Pull-Push strategy, The product life cycle, Effectiveness of advertising.
UNIT 20: ADVERTISING, SALES PROMOTION AND PUBLIC RELATIONS
Benefits of Advertising - Developing an Advertising Program: Identify the Target Audience, Define the
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Objectives of an Advertising Campaign, Set the Advertising Budget, Objective and Task Method, Percent-
of-sales Method, Affordability Method, Competitive Parity Method, Developing the Advertising Message –
Meaningful, Distinctive, Believable, Message Structure, Selecting the Right Media, Evaluation of
Advertising Effectiveness - Advertising Agencies: Ad Agencies in India - Sales Promotion: Purpose of Sales
Promotion, Importance of Sales Promotion, Decisions in Sales Promotion - Public Relations: Marketing and
PR, Major decisions in PR, Major Tools of PR, Dealing with Unfavourable PR, Sponsorship.
UNIT 21: PERSONAL SELLING AND SALES FORCE MANAGEMENT
Nature and Importance of Personal Selling - Types of Salespersons: Order takers, Order getters, Support
personnel - Personal Selling Process: Prospecting and evaluating, Generating leads, Identifying prospects,
Qualifying the Prospects, Pre-Approach, Approach, Presentation, Handling objections Closing, Follow-Up -
Improving Personal Selling Efforts: Professional training, Negotiations, Relationship marketing - Sales
Force Management: Establishing sales objectives, Fixing the sales quota, Designing the sales force,
Determining the sales force size, Recruiting and selecting salespeople, Routing and scheduling, Training
sales personnel, Compensation, Evaluating sales force, Motivating the sales force.
UNIT 22: DEVELOPING AND MANAGING HOLISTIC MARKETING ORGANIZATION
Trends in Business Environment: Reengineering, Outsourcing, Benchmarking, Collaborating with Suppliers,

Customer Relationships, Mergers, Globalizing, Downsizing, Focus, Empowering - Marketing Organization:
Evolution of a Marketing Department, Simple Sales Department, Sales Department with Auxiliary
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Marketing Functions, Modern Marketing Department, Modern Marketing Company, The Designing of
Marketing Organizations, Functional Organization, Geographical Organization, Product or Brand
Management Organization, Market Management Organization, Corporate/Divisional Organization -
Linkages with other Departments: Research and Development (R&D), Engineering, Manufacturing and
Operations, Purchasing, Finance - Strategies for Organization Wide Marketing Orientation, Outsourcing of
marketing functions & its challenges - Marketing Implementation - Evaluation and Control: Annual Plan
Control, Sales Analysis, Market Share Analysis, Marketing Expense to Sales Analysis, Financial Analysis,
Market Based Score Card Analysis, Profitability Control, Efficiency Control, Strategy Control.
UNIT 23: GLOBAL MARKETING STRATEGIES
Significance of Global Marketing - Selecting a Potential Market: Regional free trade zone, Evaluation of
potential markets - The Impact of Environmental Forces on Global Marketing: Economic environment,
Political environment, Social and cultural environment, Legal and regulatory environment, Technological
environment - Methods of Entering a New Market: Direct exports, indirect exports, Licensing, Joint
Ventures, Internationalization process - Types of Marketing Organization: Export Division, International
Division, Global Organization - Developing Global Strategies: Product Strategies, Promotion Strategies,
Pricing Strategies, Place Strategies.
UNIT 24: DIRECT AND DIGITAL MARKETING
Nature and Scope of Direct Marketing - The Growth and Benefits of Direct Marketing - Database Marketing
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- Forms of Direct Marketing: Catalogue Marketing, Telemarketing, Kiosk Marketing, Home Shopping,
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Other Media - Direct Marketing in India - The Growth of Online Marketing - Advantages and Disadvantages
of Online Marketing -Developing Online Marketing Strategies- Online Advertising: Forums, Newsgroups,
Bulletin Boards, Web Communities, E-mails, Web Casting, Social Media Marketing, Customer experience
management, User generated content - Opportunities and Challenges in Online Marketing.
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UNIT 25: MARKETING OF SERVICES
Bases for Service Classification: Classification on the Basis of the Degree of Involvement of Customer:
People processing, Possession processing, mental stimulus processing, Information processing -
Classification on the Basis of the Service Tangibility: Highly tangible, Service linked to tangible goods,
Tangible goods linked to services, Highly intangible - Classification on the Basis of Skills and Expertise
Required: Professional services, Non-Professional services - Classification on the Basis of the Business
Orientation of Service Provider: Not-for-profit organizations, Commercial organization - Classification on
the Basis of the Type of End-user: Consumer Services, Business-to-Business services, Industrial services -
Characteristics of Services: Intangibility, Inseparability, Heterogeneity, Perishability - Developing
Marketing Strategies for Services: Product, Price, Promotion, Distribution, People, Process, Physical
evidence - Service Differentiation: Offer, Delivery, Image - Managing Service Quality: Strategic Concept-
Commitment of the Top Management, High Standards, Monitoring Systems, Customer Complaints,
Satisfying Employees, Service Gap Model, Metrics in Service marketing - Managing Productivity - Product
Support Service Management: After-Sales Service Strategy.
UNIT 26: MARKETING OF ORGANIZATIONS, INDIVIDUALS, PLACES AND IDEAS
Organization Marketing: Image Assessment, Image Planning and Control - Idea Marketing - Person
Marketing - Place Marketing.
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UNIT 27: MARKETING MANAGEMENT: ETHICAL AND SOCIAL DIMENSIONS
Importance of Marketing Ethics - Social Impact of Marketing: Individual Customer, Society, Financial tasks,
Economic and production tasks, Maintenance tasks, Political tasks, Environmental tasks, Other businesses -
Social Regulations in Marketing: Consumer rights, Community relations, Green marketing, Consumer
protection act, Consumer forums, Bureau of Indian standards, Competition policy, Environmentalism, Public
action to regulate marketing - Business Regulations in Marketing: Enlightened marketing – Customer-
specific marketing, Social responsibility marketing, Innovative marketing, Value marketing, Sense-of-
Mission marketing, Marketing ethics, Corporate code, Principles of Public Policy Towards Marketing –
Principle of consumer and producer freedom, Principle of curbing potential harm, Principle of meeting basic
needs, Principle of economic efficiency, Principle of innovation, Principle of consumer education and
information, principle of consumer protection.
UNIT 28: GREEN AND SUSTAINABLE MARKETING
Green Marketing – Green washing and Green Marketing Myopia - Green Consumer, Green Products, Eco
Labels and Green Brands - Reasons for the Growth of Green Marketing - Evolution of Green Marketing -
Sustainability: People, Planet and Profit (TBL) - Towards Sustainable Marketing- Sustainable Marketing -
Analysis of Social, Environmental and Economic Dimension - Sustainable Consumer Behaviour -
Sustainable Marketing Values and Goals - Sustainable Marketing Strategy - Sustainable Segmentation,
Targeting and Positioning - Sustainable Marketing Mix - Sustainable Marketing Transformation -
Advantages of Sustainable Marketing.
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UNIT 29: MARKETING ANALYTICS
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Market Intelligence - Competitive Intelligence - Difference between Competitive Intelligence, Marketing
Intelligence and Business Intelligence - Big Data - Analytics Model - Advertising Analytics.
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CONTENT
Multiple Choice Questions
1. Unit 1: Marketing: the Development of a Concept 1
2. Unit 2: Delivering Customer Values and Satisfaction 3
3. Unit 3: Marketing Environment 5
4. Unit 4: Marketing Budgets and Costs 7
5. Unit 5: Understanding Consumer Buying Behavior 10
6. Unit 6: Organizational Markets and Organizational Buying Behavior 13
7. Unit 7: Marketing Research, Mkis and Demand Forecasting 15
8. Unit 8: Market Segmentation and Market Targeting 17
9. Unit 9: Strategic Planning Process in Marketing 19
10. Unit 10: Marketing and Competitive Strategies 21
11. Unit 11: Product and Product Lines 23
12. Unit 12: Product Differentiation and Positioning 26
13. Unit 13: New Product Development I 29
14. Unit 14: Branding and Packaging 31
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15. Unit 15: Pricing and Marketing 33
16. Unit 16: Channels of Marketing 36
17. Unit 17: Logistics and Wholesaling 38
18. Unit 18: Retailing 40
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19. Unit 19: Communication Mix in Marketing 42

20. Unit 20: Advertising, Sales Promotion and Public Relations 44
21. Unit 21: Personal Selling and Sales Force Management 46
22. Unit 22: Developing and Managing Marketing 48
23. Unit 23: Global Marketing Strategies 50
24. Unit 24: Direct and Online Marketing 52
25. Unit 25: Marketing of Services 54
26. Unit 26: Marketing of Organisations, Individual, Places and Ideas 56
27. Unit 27: Marketing Management- Ethical and Social Dimensions 58
28. Unit 28: Green and Sustainable Marketing 61
29. Unit 29: Marketing Analytics 64
Multiple Choice – Answers and Explanations
30. Unit 1: Marketing: the Development of a Concept 67
31. Unit 2: Delivering Customer Values and Satisfaction 68
32. Unit 3: Marketing Environment 69
33. Unit 4: Marketing Budgets and Costs 70
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34. Unit 5: Understanding Consumer Buying Behavior 71
35. Unit 6: Organizational Markets and Organizational Buying Behavior 72
36. Unit 7: Marketing Research, Mkis and Demand Forecasting 73
37. Unit 8: Market Segmentation and Market Targeting 74
38. Unit 9: Strategic Planning Process in Marketing 75
39. Unit 10: Marketing and Competitive Strategies 76
40. Unit 11: Product and Product Lines 77
41. Unit 12: Product Differentiation and Positioning 78
42. Unit 13: New Product Development 79
43. Unit 14: Branding and Packaging 80
44. Unit 15: Pricing and Marketing 81
45. Unit 16: Channels of Marketing 82
46. Unit 17: Logistics and Wholesaling 83
47. Unit 18: Retailing 84
48. Unit 19: Communication Mix in Marketing 85
49. Unit 20: Advertising, Sales Promotion and Public Relations 86
50. Unit 21: Personal Selling and Sales Force Management
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51. Unit 22: Developing and Managing Marketing 88
52. Unit 23: Global Marketing Strategies 89
53. Unit 24: Direct and Online Marketing 90
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54. Unit 25: Marketing of Services 91

55. Unit 26: Marketing of Organisations, Individual, Places and Ideas 92
56. Unit 27: Marketing Management- Ethical and Social Dimensions 93
57. Unit 28: Green and Sustainable Marketing 94
58. Unit 29: Marketing Analytics 95
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MULTIPLE CHOICE QUESTIONS
UNIT 1: MARKETING: THE DEVELOPMENT OF A CONCEPT
1. NIKE has a business model that allows the customer to purchase a product which is customized to meet
his/her exact needs, for example the colour of his/her shoe, his/her own drawing on shoe or creating a
pair of shoe with his/her size. It has the ability to provide customers with whatever they want, whenever
they want it, wherever they want it and however they want it. This refers to the ________________.
a. Product concept b. Production concept
c. Sales concept d. Marketing concept
e. Societal marketing concept
2. Industrial Revolution began in the seventeenth century and continued till the late 1920s. During
Industrial Revolution, manufacturing was given importance, and it was assumed that all that gets
produced gets sold. For example, Henry Ford said, “You can have any colour car you want, as long as it
is black”. This was with reference to ____________ .
a. Product era b. Production era
c. Sales era d. Marketing era
e. Societal marketing era I
3. Tata Consultancy Services (TCS) has undertaken sustainable community initiatives such as ‘adult
literacy programs, village development, webHealth Center, etc. as a good corporate citizen and at the
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same exceed customer expectations of quality, delivery and cost by following -------approach.
a. Sales orientation b. Marketing orientation
c. Production orientation d. Product orientation
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e. Societal marketing orientation

4. Narendra Mukharjee started a small readymade garments shop in 1920. At that time, he merely
concentrated on making an adequate number of garments, in a cost effective manner. Through the years,
the shop expanded and went on to become a retail garment house. By 2013, it had started offering
customized garments. Identify the form from the following that reflects the evolution of his business
orientation.
a. Production to Sales to Marketing orientation
b. Production to Product to Marketing orientation
c. Societal marketing to Production to Marketing orientation
d. Sales to Marketing to Societal Marketing orientation
e. Marketing to Sales to Production orientation
5. Companies are offering products based on customers individualized tastes. For example, a restaurant in
New Delhi offers variety of ‘dosas’ such as masala dosa, chicken dosa, dry fruit dosa, onion dosa, etc.
based on wider customer choice.
a. Selling b. Standardization
c. Customization d. Product focus
e. Segmentation
6. Toyota Motors uses all types of media channels such as TV advertising, Google paid search, local
Toyota dealership ad, a link to YouTube video and an ad in Car and Driver magazine to promote Toyota
Camry to influence customer at various touch points. Toyota follows -------- approach to gain maximum
advantage out of its communication campaign.
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Work Book: Marketing Management
a. Customization of marketing communication b. Integrated marketing communication

c. Standardization of marketing communication d. Focus more on Internet communication
e. Outsourcing of marketing communication
7. Marketing in the education industry has gained importance, with the education sector opening up to the
private players. The players are focusing on marketing mix to attract customers. Distance education has
become a priority for many working executives. Distance education is considered as ----element of
marketing mix.
a. Product b. Place
c. Price d. Promotion
e. None of the above
8. Microsoft has announced that it will fire around 18,000 employees over the next year, which is 15% of
its global workforce of 127,000. The mass job-cut is occurring for two key reasons: There is a lot of
“synergy and strategic alignment” to be made following Microsoft’s acquisition of Nokia — and, to
provide space so that Microsoft CEO can successfully reorient the company towards his Mobile and
Cloud dream vision. The reorientation of Microsoft’s CEO, Nadella is referred to:
a. Lean operations b. Franchising
c. Decentralization d. Reengineering
e. Value chain analysis
9. McDonald’s has developed the best franchise model and is best in class at everything it does.
Franchisers around the world wanted to emulate and follow the systems and practices of McDonald’s
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model. Which of the following tools can be considered as an invaluable asset for franchisers to enhance
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their business practices on the lines of McDonald’s?
a. Insourcing b. Benchmarking
c. Customization d. Standardization
e. Outsourcing
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10. US companies prefer Indian companies to complete their business operations cost-effectively. The
reasons for the transfer of work to India are many such as availability of skilled manpower, cheap labour
rates, quality output, time-to-market, etc. Which of the following concepts helps India to get the work
from foreign companies?
a. Insourcing b. Outsourcing
c. Offshoring d. Customization
e. Reshoring
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11. Wal-Mart follows EDLP (everyday low price) strategy to provide consistent better value. It forces
suppliers to provide quality goods. It tells employees that customers are always right. Wal-Mart has
become No.1 retailer due to its primary focus on the ____________.
a. Competitors b. Products
c. Customers d. Discounts
e. Promotions
12. State Bank of India (SBI) has been rated as No. 1 bank in India. It is the leading bank in India when it
comes to number of branches, ATM’s, net profits, total assets managed, etc. With an employee base of
close to 3 Lakh people. SBI commands 20% (approx) of the Indian banking sector. The bank has over
17,000 branches with more than 27,000 ATM’s. The bank manages assets worth more than 390 billion
USD. What business components are explained while describing SBI?
a. Customer base b. Resources
c. Efficient processes d. Organization culture
e. All the above
13. BMW India offers customers an unparalleled luxury experience with exclusively authentic premium
products, world-class dealerships and high quality after-sales services. These measures are meant
primarily
a. Generate more profits
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b. Introduce more luxury cars
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c. Enhance customer satisfaction d. Expand dealer network
e. Eliminate competitors
14. GAP, American clothing retailer, has boosted margins by streamlining its organization by reducing
inefficiencies in its supply chain and cutting costs. An organization’s capability to realize a profit
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margin depends on their ability to manage the linkages between all activities.
a. Cost-benefit analysis b. Value chain analysis
c. Market analysis d. Sales analysis
e. Competitor analysis
15. Indian Oil Corporation Ltd (IOCL) is primarily engaged in the business of refining the crude oil and
generating the petroleum products. It is not engaged in the production/extraction of crude oil (which is
done in India by OIL/ONGC etc.). It is not engaged in the automobile sector where the major part of the
petrol and diesel produced by it, are consumed. Further, IOCL does not own all the petrol bunks where
its oil is distributed. It engages middlemen for distribution of its products by allotting dealership to
petrol bunks. Which of the following reflect all these activities?
a. Value chain of IOCL b. Value Chain of Oil Industry
c. Value Chain of ONGC d. Vendor management of IOCL
e. Activity Based Costing of IOCL
16. Future Group has taken the whole concept of customer loyalty to the next level by joining hands with
PAYBACK. PAYBACK is India’s largest and one of Europe’s most successful multi-partner loyalty
programs. This program enables consumers to collect millions of points across online and offline
partners – with just a single card. Today, with more than 30 partners with 1,500 outlets and 10 million
card members, it’s the only program which works with market leading pan-India players from the
banking, travel, petroleum and online sectors such as ICICI Bank, HPCL, Univercell, BookMyShow
and MakeMyTrip. The basic motive behind PAYBACK loyalty program is _______________.
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a. Customer retention is more profitable b. Attracting new customers is easy

c. Customer retention is difficult d. Attracting new customers is
e. PAYBACK program may benefit few players easier than retention
17. Michael Dell, the founder of Dell says "At Dell, we’ve always tried to exceed customer expectations
with our products and services. When you delight your customer – consistently – by offering better
products and better services, you create strong loyalty. When you go beyond that to build a meaningful,
memorable total experience, you win customers for life. Our goal, at the end of the day, is for our
customers to say, Dell is the smarter way to buy a computer." Identify the approach followed by Dell.
a. Basic marketing b. Reactive marketing
c. Accountable marketing d. Proactive marketing
e. Partnership marketing
18. Ascent Software Company Ltd, New Delhi wanted to segregate customers based on customer
profitability. It has identified a list of profitable customers and its level of dependence on these
customers. It has also identified the unprofitable customers and the amount of the company’s resources
being consumed by them. Which one of the following approaches is followed to segregate profitable
customer and unprofitable customer?
a. Activity Based Costing b. Action Based Costing
c. Expenditure Based Costing d. Revenue Based Costing
e. Customer Based Costing
19. Shoppers’ Stop provides special benefits like additional discounts to the ‘First Citizen’ club members. It
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has developed long-term relationship with the customers through its relationship marketing strategies.
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How do you think Shoppers’ Stop has influenced customers to become loyal?
a. Customers –clients –members of the company club – advocates
b. Clients –members of the company club – advocates -customers
c. Members of the company club – advocates- customers –clients
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d. Advocates - customers –clients –members of the company club

e. Advocates –customers-members of the club-clients
20. Srujana Electricals Ltd. sells emergency lamps to customers. The company does not bother to meet
them again to check whether the product is working properly or not. Which of the following is being
followed by the company?
a. Accountable marketing b. Partnership marketing
c. Reactive marketing d. Basic marketing
e. One-time marketing
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UNIT 3: MARKETING ENVIRONMENT
21. Tata NanoSingur faced a controversy generated by land acquisition of the proposed Nano factory of
Tata Motors at Singur in Hooghly district, West Bengal, India to manufacture Rs. 1 lakh people car. The
project faced massive opposition from displaced farmers. The unwilling farmers were given political
support by West Bengal’s opposition leader, Mamata Banerjee. Banerjee’s "Save Farmland" movement
was supported by environmental activists like Medha Patkar, AnuradhaTalwar and Arundhati Roy.
Which of the following marketing environmental factors influenced Tata Motors to finally move out of
Singur to set up TataNano plant in Sanand, Gujarat?
a. Industry-friendly policies of Gujarat Government
b. Lack of support from local community in West Bengal
c. Loan facility from Gujarat Banks d. a and b
e. Technological factors
22. India is facing coal shortage despite having some of the largest coal deposits globally. The shortage of
coal supply also hampers India’s growth prospects in terms of energy deficiency in manufacturing and
other sectors. Coal India Limited (CIL) is the largest producer of coal in India. NTPC recently claimed
that CIL supplied inferior quality coal and also stopped coal purchases on the grounds of huge dues. The
other charge was that CIL was simply leveraging its power to pass off substandard coal at premium
rates. NTPC and other buyers say that they need independent third-party certified quality control and
grading of coal. The coal market competition in India can be described as_________________.
a. Oligopoly b. Monopoly
c. Pure competition
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d. Monopolistic competition
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23. Nielsen has released the findings of the Indian Smartphone User study conducted recently, and the
numbers thrown up are very interesting. The country currently has 900 million mobile phones in use,
out of which 40 million are smart phones. Deeper into those numbers, the survey reveals that 50% of
those 40 million smart phones are with people under the age of 25. Which of the following marketing
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environmental factors should be focused on by the smart phone companies to gain market share?
a. Demographic environment b. Political environment
c. Economic environment d. Natural environment
e. Legal environment
24. Dr Reddy’s Labs’ (DRL) share price dipped about two per cent following a verdict delivered by a US
court that a generic drug manufactured by the company’s would infringe the innovator’s patent. The
United States Court of Appeals for the Federal Circuit ruled that the generic drug would infringe on the
patent of Sunovion Pharmaceuticals’ insomnia treatment drug Lunesta. Sunovin is a wholly-owned
subsidiary of Osaka-based Dainippon Sumitomo Pharma Co. Ltd (DSP). Which of the marketing
activities of Dr. Reddy’s Labs’ (DRL) were influenced in the U S?
a. Consumer protection Act b. Intellectual property Act
c. Non-government regulatory agencies d. Political environment
e. Economic environment
25. The Consumer Complaints Council (CCC) under the Advertising Standards Council of India (ASCI) has
banned as many as 177 advertisements across segments during July 2013. Among these are ads from
prominent companies like Nivea, L’Oreal, Hindustan Unilever (HUL), Dabur, ITC, Audi, Maruti Suzuki
and Apple India; they range from FMCGs to autos, personal accessories to alcohol, and education to
media. The advertising environment in India is regulated by __________ .
a. Non-government regulatory agency b. State regulatory agency
c. Natural environment d. Economic environment
e. Consumer protection act
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26. The number of new cars sold annually was a reliable indicator of the nation’s economic health. The
automakers industry experienced a global decline of overall demand during the 2008-2010 periods due
to a global financial crisis which seemingly started off in North American mortgage crisis. The financial
downturn affected auto manufacturers all round the globe, but the worst hit automakers were the
American “big three” consisting of Chrysler, Ford and General Motors. Which of the following business
cycles during the 2008-10 influenced ‘big three’?
a. Growth b. Recovery
c. Recession d. Slump
e. Boom
27. To increase competition in the smart phone space and to boost to gain market share in the consumer
lending business, ICICI Bank announced EMI (equated monthly instalment) facility on debit cards to
enable its customers to convert their high value transactions into easy instalments. The bank has tied up
with Samsung India to offer this facility. The debit card holders can pay in EMIs of 3, 6, 9 or 12. The
Interest rate will be calculated on reducing balance method. The current interest rate is 13% for tenures
till 12 months. Most banks currently offer EMI facility only on credit cards. The purpose behind EMI
facility is to --------
a. Enhance buying power of customers b. Enhance selling power of customers
c. Enhance buying power of Samsung d. Enhance buying power of ICICI Bank
e. Enhance selling power of ICICI Bank
28. Starbucks launched “Tweet a Coffee” to engage customers and build awareness of the brand. Not only
do they provide giveaways, but Starbucks always creates content that encourages its fans to like,
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comment, and share. Starbucks wanted to use social media technology for the following purpose.
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a. To reduce price of the product b. To transport the goods faster
c. To enhance the connectivity with customers d. To eliminate competitors
e. To minimize advertising cost
29. Gopal Shinde is a customer of mobile service provider ABC, in Mumbai, India. Unsatisfied with the
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coverage problem, he decided to opt for mobile number portability option and switch to a better service
provider XYZ. After applying for number portability, for nearly six months he was made to wait for
various reasons. At the end, his present provider ABC convinced him that they will improve the
coverage in his house and fixed a booster. Gopal Shinde is still not happy with the coverage. He can
approach the following agency to keep a check on mobile service providers to get a quality service.
a. District consumer forum b. Mobile service provider ABC
c. Mobile service provider XYZ d. Telecom Regulatory Authority of India (TRAI)
e. High Court of Maharashtra
30. Chakor Jain, Business Head of Lee India said, “According to estimates, the size of the denim market in
India is about 65-70 million pairs. It is a large structured industry growing at about 15-20% a year. We
are only growing as there is a robust demand for denim in India”. The ‘Lee’ brand is experimenting with
different washes like washed down denims, dark washes and fabrics like back stretch fabric, fabrics
which are coated and Jeggings—a hybrid between jeans and leggings that offer greater stretchability.
Denim majors are selling big in India with aggressive plans lined up to launch new brands and
innovative trends for the market. The new trend for denim market is due to -------------.
a. Socio cultural forces b. Legal environment
c. Competitive forces d. Government supportive policies
e. Scarcity of Khadi in India
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31. The CEO of Nagpur Mineral Bottling Ltd. directed CMO Mr. Santosh Kapadia to examine the costs
associated with each individual marketing activity to assess the profitability of each. Santosh Kapidia
identified inventory handling, channel margin and advertising, are absorbing most of the expenditure
without adding much value. CEO advised CMO to cut one level of channel and install Supply Chain
Management software to handle inventory in an efficient way. CEO also advised CMO to cut
advertising cost to one-third and focus on social media to promote the brand. The changes have helped
the company to increase its profit by 20% and reduce its costs by 40%. Which of the following concepts
is followed by the CEO and the CMO to increase the profit and reduce the costs of the company?
a. Sales analysis b. Profit analysis
c. Revenue analysis d. Marketing cost analysis
e. Financial situation analysis
32. Dr. Robert Kaplan of Harvard Business School stated “…the most profitable 20% of customers generate
between 150 and 300% of total profits. The middle 70% of customers about break even, and the least
profitable 10% of customers lose 50 – 200% of total profits, leaving the company with its 100% of total
profits. And, often, some of the largest customers turn out to be the most unprofitable.” Which of the
following methods is used by the company to differentiate customers into profitable, break-even and
least profitable categories?
a. Sales analysis b. Balance sheet analysis
c. Profit analysis d. Customer satisfaction analysis
e. Customer profitability analysis
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Answer Q33, Q34 and Q35 are based on the following graph.
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http://www.worldofapple.com/category/apple-financial-news/
33. Apple has announces Q3 2014 Profit of $7.7 Billion on Revenue of $37.4 Billion. The iPad Unit Sales
between Q3 2010 – Q3 2014 are shown in the graph.
Apple’s Gross margin was 39.4 percent in Q3 2014 compared to 36.9 percent in the year-ago quarter i.e.
Q3 2013. What was the cost of goods sold during Q3 2014?
a. $22.66 billion b. $22.66 million
c. $2.266 billion d. $2.266 million
e. $226.6 billion
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34. The sales of iPad Units increased during Q1 2011 and Q4 2011 by ---- units.
a. 30,000,000 million b. 18,750,000 million
c. 11,250,000 million d. 7,500,000 million
e. 3,750,000 million
35. Which of the following ‘Quarter’ has shown the maximum iPad sales during the year 2013?
a. Q1 2013 b. Q2 2013
c. Q3 2013 d. Q4 2013
36. Wal-Mart is a dominant player in retailing. The company’s size provides it with enormous efficiency
that it uses to keep costs low. For example, its size allows Wal-Mart to do its purchasing more
efficiently since it has roughly 5,000 large stores worldwide. This gives the company tremendous
bargaining power with its suppliers. Not only does it get its products cheaper, but its size allows it more
inexpensive distribution. Which of the following factors has helped Wal-Mart to gain all these
advantages?
a. Economies-of-scale b. Better negotiation skills
c. Customer relationship management d. Vendor relationship management
e. Better overhead management
37. The Boston Consulting Group (BCG) came out with a research finding that ‘there is a strong
relationship between the cost of production and the cumulative volume of production (total units
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produced from the first unit to the last)’. Himachal Pradesh Metals Private Limited (HPMPL) wanted to
test the BCG’s research finding on Manganese production. HPMPL has experienced a consistent cost
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reduction with increase in Manganese production. Identify the factor from the following that is
concluded by HPMPL and is responsible for cost reduction through employee productivity.
a. The economies-of-scale b. The production curve
c. The sales curve d. The experience curve
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e. The technology adoption curve

38. Ashok Chandra has become an expert in web designing with his increased volume. The time taken for
website designing over a period of time surprised him with outstanding results. Ashok Chandra is able
to design more websites in less time and he has also noticed that there is a hidden relationship between
time spent and number of websites designed. For example, if the first website takes 100 hours, then after
the second website the cumulative average time will be 80 hours (80% of 100 hours). The cumulative
average of 80 hours consists of 100 hours for the first website plus only 60 hours for the second website
resulting in a total of 160 hours divided by 2 websites. After the fourth website the cumulative average
time will be 64 hours (80% of 80 hours). After the eighth website the cumulative average will be 51.2
hours (80% of 64 hours). In other words, the total time to have completed all eight websites will be
409.6 hours (8 websites times an average time of 51.2 hours).
Ashok Chandra has found that ‘the cumulative average time to complete a manual task decreases 20%
whenever volume doubles’. Which of the following describes the hidden relationship between time
spent and no. of websites designed?
a. 80% Learning effect b. 80/20 Pareto’s rule
c. 80% Efficiency curve d. 80 % sales curve
e. 80/20 profit-sales relationship
39. Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the ‘World No.1’ two-wheeler company in
terms of unit volume sales in a calendar year. Hero MotoCorp Ltd. continues to maintain this position
till date. Indian customers still consider two-wheeler as an expensive product. Hero MotoCorp Ltd. is
able to offer the two-wheeler to Indian customers at a cheaper price based on experience curve effect
when it reaches ---------- stage of Product Life Cycle as shown in the diagram.
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a. Product development b. Introduction

c. Growth d. Maturity
e. Decline
40. Arvind Eye Care System (AECS) is one of the best eye hospitals in the world in terms of productivity
and scale. An assembly-line approach has helped AECS to become the best player in cataract surgery.
India is a home to a quarter of the world’s blind, and every year at least 4 million Indians develop
cataracts, the major cause of blindness. Arvind’s doctors perform 2,000 surgeries a year versus the
national average of 400 and few doctors perform cataract surgery just in 3.5 minutes. What factors
helped AECS doctors to perform 2000 surgeries with a time span of 3.5 minutes?
a. More patients b. Efficiency of doctors
c. Experience of doctors d. b and c
e. Chance
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41. Two of the country’s most visited pilgrimage sites, where McDonald’s planned to serve all vegetarian
fare for the first time, are near the Golden Temple in Amritsar and Jammu and Kashmir’s Katra town,
the base of Vaishno Devi shrine. Out of the two, the all-vegetarian McDonald’s is now operational at
Amritsar. Restaurant manager Harjinder Singh said, "Prior to paying obeisance in the Golden Temple it
is good to have vegetarian food. I request and invite people to grab a vegetarian bite before going to the
shrine." What factors have influenced McDonald’s to go for 100 percent vegetarian menu at restaurants
near the Golden Temple and the Vaishno Devi Shrine?
a. Cultural factors b. Economic factors
c. Social factors d. Political factors
e. Demographic factors
42. Smartphone penetration by age in 10 countries is shown in the following table. In which country, does
the Smartphone penetration increases with the increase in customer age group most of the times?
S. No Country Smartphone Penetration by Age in %

16-24 25-34 35-44 45-64
1 South Korea 86 90 70 50
2 China 83 80 68 52
3 Australia 80 81 72 52
4 United Kingdom 78
I 82 70 48
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5 United States 68 79 70 49
6 Italy 60 78 80 50
7 Russia 50 42 40 60
8 Brazil 40 40 40 30
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9 Turkey 30 25 20 15
10 India 10 10 10 10
a. India b. Australia
c. Italy d. Russia
e. China
43. Italian super carmaker ‘Lamborghini’ has opened a second showroom in New Delhi after Mumbai in a
bid to sell 20 cars in India. Lamborghini, which is owned by Volkswagen, thinks India’s super-rich have
an appetite for their expensive cars, despite the country’s high taxes on luxury vehicles and notoriously
potholed roads. In India, Lamborghini sells two models, the Gallardo and the Aventador, priced
between Rs. 2.8 crore and Rs. 6.3 crore (ex-showroom Delhi) with a top speed of 217mph. The
company is planning an SUV range that should be ready by 2017. Lamborghini’s Indian customers are
"much younger" than those in Europe, with a typical buyer being a first-time entrepreneur in their 30s.
The following factors influence customers to purchase Lamborghini cars in India.
a. Aspiration reference group b. Disclaimant reference group
c. Membership reference group d. Avoidance group
e. Secondary reference group
44. The global fashion brand Diesel gives special importance to celebrities. The company
CEO says ‘they bring eyeballs to the brand. Fans love them and love what they are wearing. They
define trends. So it is important that they try and wear Diesel. We never sign contracts with celebrities
because we want them to choose our brand on their own. It is our philosophy’. Why does Diesel show
special interest in celebrities?
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a. To minimize promotional expenses b. Celebrity is seen as a reference group

c. To take feedback on future trends d. Influencing celebrities to promote the brand
e. To keep competitors away from celebrities
45. Xavier and Mercy are couples living in New Jersey have purchased new IKEA tasteful furniture. They
have also purchased BMW very recently. They also do more travelling and spend more on dental bills
and magazines. Xavier and Mercy are in the --------------stage of family lifecycle that help companies to
target their needs.
a. Full nest III b. Newly married couple
c. Bachelor stage d. Full nest I
e. Full nest II
46. After entry into India, McDonald’s has made an addition to its earlier menu with the latest product, the
McEgg Burger. With this launch, McDonald’s aims to open up to a completely new segment of
customers who do not eat non-vegetarian food, but eat eggs. McDonald’s has gone for an advertising
campaign spread across traditional vehicles like outdoor, print and radio, along with engagement-led
media like mall activation and consumer promos. The television campaign for McEgg consists of three
films, each showing people eating McEgg Burgers and voicing chicken-like sounds thereafter.
Commenting on the new launch, Rajesh Kumar Maini, general manager, corporate communications,
McDonald’s India (North and East), pointed out that the launch opened up a new segment of consumers,
‘Eggetarians’. The purpose behind advertising campaign is to ----
a. Influencing non-vegetarians to become eggetarians
b. Changing perceptions of vegetarians to become eggetarians
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c. Shaping attitudes and beliefs of vegetarians to become eggetarians
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d. Motivating customers who do not eat non-vegetarian food but eat eggs to purchase McEgg Burger
e. Motivating non-vegetarians to buy McEgg Burger
47. A survey by International Data Monitor Inc. shows that ‘in Europe and the U.S. the gap between the
young and the old is not much. Now consumer groups are not fixed by age as much as they are by
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lifestyle. It is not uncommon to find couples with an age difference of 20-30 years. The young and not-
so-young want to look and feel the same. Both of them want to look cool and fashionable. They want to
wear similar kinds of clothes and accessories that are considered in fashion. So, there is no target group
and the real focus is on lifestyle’. Fashion retailers have to focus on the --------factor to influence
consumer buying behaviour.
a. Sub culture b. Social class
c. Lifecycle d. Family
e. Individual taste
48. Table Mate is a portable table and can be carried anywhere along with the customer. Table Mate is
suitable for everyone due its adjustability in shape. It has perhaps been the most advertised product over
the internet, due to its features it has got a huge acclaim everywhere. It is an outstanding product that
can be used for various indoor and outdoor activities. Its storing is also easy just by folding it and put it
under a sofa or bed. The family members play various buying roles in a purchase decision. What is the
role played by a mother in Table Mate purchase decision?
a. Initiator b. User
c. Buyer d. Decider
e. Maintainer
49. Harvard Business School (HBS) is consistently ranked among the foremost business schools in the
world. In the most recent rankings of US business schools, HBS ranked #5 in the Financial Times.
Students can join one or more of the more than 80 clubs on campus. The clubs invite speakers to
campus; organize trips, social events, and help forming bonds between students of similar interests. The
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Student Association (SA) is the main interface between the MBA student body and the
faculty/administration. No two HBS students are alike and similarly, no two HBS career paths are alike.
Rakesh Malhotra, a final year engineering student from Dehradun in India, wants to join HBS for MBA
program in the next academic year. Rakesh Malhotra displays the following buying behaviour?
a. Variety seeking behaviour b. Routinized buying behaviour
c. Extensive problem solving behaviour d. Executive problem solving behaviour
e. Unique buying behaviour
50. Indo-Japanese joint venture Toyota Kirloskar Motor (TKM) has recalled 44,989 units of the multi-utility
vehicle ’Innova’ manufactured between February 2005 and December 2008. According to the company,
the recall has been mandated due to an error discovered in the spiral cable mounted on the steering
wheel. The recall is a part of a global exercise as the company plans to fix 6.58 million vehicles around
the world which may suffer from faults in steering and seats. This will be one of the largest vehicle
recalls to date in the global auto industry. The company wanted to influence the _______ stage of the
buying decision process of customers.
a. Problem recognition b. Information search
c. Evaluation of alternatives d. Purchase decision
e. Post purchase behaviour
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UNIT 6: ORGANIZATIONAL MARKETS AND

ORGANIZATIONAL BUYING BEHAVIOR
51. L&T Hyderabad Metro Rail Ltd (LTMRHL) has placed an order to purchase Metro Trains with
Hyundai-Rotem Factory, South Korea for Hyderabad Metro Rail project. V.B. Gadgil, chief executive
and managing director, LTMRHL has experienced the ----------organizational buying situation while
placing an order for Metro Trains from the Hyundai-Rotem Factory.
a. LTMRHL wanted a customized rebuy
b. LTMRHL wanted to buy Metro trains first time as New task
c. Hyderabad people are interested in customized buying
d. LTMRHL wanted to buy Metro trains as System buying
e. LTMRHL are interested in modified rebuy
52. Tata made a big bet on the Nano, the people car priced at around $2000. It spent close to $400 million
developing the vehicle and hundreds of millions more building a factory capable of manufacturing
15,000 to 20,000 of the tiny cars a month. With sales now hovering around 2,500 a month, down from a
peak of about 10,000 in April 2012, that means a lot of idle capacity at the plant in the western state of
Gujarat, and a lot of frustrated Tata dealers around the country.Identify the type of demand from the
following that Tata Nano is experiencing in India today.
a. Inelastic demand b. Derived demand
c. Joint demand d. Fluctuating demand
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e. Elastic demand
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53. Driving down the price of the Tata Nano couldn’t have been done without the collective effort of the
component suppliers. Tata Johnson Controls developed the seats for the small car. Tata TACO worked
on parts like interior injection mouldings, dashboard aggregates and door handles. Bosch was asked to
develop the engine management system for the car.Kinetic Engineering supplied the transmission gears
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for the car, a crucial component in the drivetrain. Who of the following is considered as the Original
Equipment Manufacturer (OEM)?
a. Tata Nano and Bosch b. Tata Johnson Controls
c. Tata Taco and Tata Nano d. Bosch and Kinetic Engineering
e. Tata Johnson Controls, Tata taco, Bosche
54. Anglo-Italian firm Agusta Westland has submitted its bid for two military tenders to supply helicopters
to the Indian Navy and the Indian Coast Guard. The firm has submitted its response to Indian Navy’s
tender for procuring 56 naval utility helicopters and Coast Guard’s Request for Proposal (RPF) for
buying 14 medium-lift choppers. Why does Indian military follow the procedures of tenders and RPF?
a. Government markets wanted to delay the purchase decision
b. Indian military wanted to buy directly from Agusta Westaland
c. Military officials are incompetent in direct purchase
d. To bribe players for a better price
e. To enhance transparency in military purchases
55. The University of Chicago had opened a centre in New Delhi. Virginia Polytechnic Institute and State
University, known as Virginia Tech in on the way to open its center. Harvard Business School has an
Indian research centre in Mumbai and Deakin University, a well-known name from Australia, has a
centre in New Delhi. Some global higher education brands are opening research centres to capture a
portion of the growing market of executive education and other research partnership opportunities.
Foreign universities are yet to open independent campuses in India due to ______________.
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a. Organizational factors b. Social factors

c. Personal factors d. Environmental factors
e. Financial factors
56. Telangana government has decided to purchase 1500 cars for its police department. The two brands
which are competing against each other to get the order from the Telangana government are Ertiga and
Innova. Maruti Car Company representatives presented their Ertiga car before the higher officials of
government and police officials and explained them the huge difference between the price and mileage
of the two cars. Which of the following roles is played by Government and Police officials in the
organizational buying?
a. Police officials as Initiators b. Government as Influencers
c. Police officials as Buyers d. Government as Users
e. Police officials as Gatekeepers
57. According to a Retail Journal from the Boston, US, the retail giant Wal-Mart, stocks products made in
more than 70 countries and at any given time, operates more than 11,000 stores in 27 countries around
the world, and manages an average of $32 billion in inventory. Over the past ten years, Walmart has
become the world’s largest and arguably most powerful retailer with the highest sales per square foot,
inventory turnover, and operating profit of any discount retailer. In its transition from regional retailer to
global powerhouse, the organization has become synonymous with the concept of successful ------------.
a. Buying b. Supply Management Orientation
c. Vendor Management Orientation d. Customer Management Orientation
e. Retail Store management
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58. Airports Authority of India (AAI) aims to expand airports in Tier-II and Tier-III towns across country in
the next five years. AAI has already identified Surat as one of the cities where 70% of customers prefer
to travel by air. AAI is at the ----stage of organizational buying process for setting up an airport at Surat.
a. Surat people requested AAI to recognize general need of Surat people
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b. AAI has recognized a problem with Air travel of Surat people

c. Surat needs an airport with capacity of 20 lakh population/annum
d. Searching for suitable land for airport
e. Surat government issued a notification for Vendor analysis
59. Embraer S.A., a Brazilian aerospace company, has signed an agreement with India’s Air Costa for an
order for 50 E-Jet planes. The acquisition is a mix of 25 E190 and 25 E195 Jet planes and has an
estimated value of USD 2.94 billion based on 2014 list prices. Air Costa has become the first customer
of E-Jet planes in the Indian market and will take delivery of the 50 Jet planes in 2018. Air Costa is at --
-----stage of organizational buying process to purchase 50 E-Jet planes
a. Product specification b. Searching for potential suppliers
c. Value Analysis d. Vendor Analysis
e. Order Routine Specifications
60. NTPC has decided to give away contracts to set up Rs 11,800 crore power plant in Chattisgarh. NTPC
has received bids from three firms - BHEL, L&T and Doosan Heavy Industries. NTPC officials say ‘We
will evaluate the bids and call price bids from the qualifying companies." NTPC is at ---------------stage
of organizational buying process to set up power plant in Chattisgarh.
a. Problem recognition b. Product specifications
c. Searching for potential suppliers d. multiple sourcing
e. Performance review
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UNIT 7: MARKETING RESEARCH, MKIS AND DEMAND FORECASTING
61. Rural Marketing Association of India (RMAI) is a national industry body with a membership base of
more than 70 companies that promotes the cause of promoting rural marketing. With 12.2% of the
world’s population, rural India represents the single largest potential market and accounts for 53% of
FMCGs and 59% of durables sale in India. The rural market has therefore become vital for the growth
of most companies. The association undertakes market research to enable________________.
a. Improving the overall understanding of rural markets
b. Increase knowledge base of rural marketers
c. Promote, improve, develop and further the cause of rural marketing in India.
d. (a), (b) and (c)
e. (b) and (c)
62. In 1979, Xerox researched Japanese competitors to understand how they could sell mid-size copy
machines for less than what it cost Xerox to make them. Today, a lot of companies frequently use
benchmarking as a standard research tool. The design of the research plan employed in the said example
is____________.
a. Exploratory b. Descriptive
c. Causal d. (a) and (b)
e. (a) and (c)
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63. Higher end fine dining restaurants in the city like Zaffran, gives their customers a form to be filled up
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giving their valuable feedback in terms of ambience, food, service quality, areas of improvement etc.
This kind of market research instrument to collect primary data is referred to as___________.
a. Mechanical instruments b. Sampling
c. Questionnaires d. Personal interview
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e. One to one interviews

64. The New York Times collected Twitter traffic during the 2009 super bowl and produced stunning
visualization of comments throughout the game. The primary data collection and secondary data
collection differs in_________.
a. Secondary data collection is cheaper and less time consuming.
b. Secondary data is there all around us and more accessible than primary data.
c. Secondary data can be more powerful and reliable than primary data.
d. (a) and (b)
e. (a) and (c)
65. Wal-Mart knows the sales of each product by store and total each evening. This enables it to transmit
nightly orders to suppliers for new shipments of replacement stock. Wal-Mart shares its sales data with
its large suppliers such as P&G and expects P&G to re-supply its stores in a timely manner. This
component of MkIS is referred to as______________.
a. Order to payment scale b. Sales information system
c. Marketing intelligence system d. Marketing decision support system
e. Data warehousing
66. American Airlines produced a marketing decision support system that helps decide how much to
overbook and how to set prices for each seat so that a plane is filled and profits are maximized. Which
of the following benefits the Marketing decision support system?
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a. Speed up problem solving in an organization b. Helping automate managerial processes

c. Speed up the process of decision making d. (a) and (b)
e. (a), (b) and (c)
67. Irish House, the famous pub is a brand catering to the niche. The patrons can enjoy the Irish alcoholic
beverages and food in their pubs and also happy hours every day at particular time period. With retro
music played by the in-house DJ’s, the pub is upbeat for its Irish ambience and culture. This type of
market is referred to as_____________.
a. Potential market b. Available market
c. Qualified available market d. Target market
e. Penetrated market
68. McDonald’s, with its locations all over the globe, introduced Mclobster in their menu. They
experimented this within their own restaurants, by doing small, local promotions and offering it on their
menu with a big “ NEW” next to it. Having been not very profitable to commercialise, they reintroduced
over the years as a seasonal product and targeted coastal consumers who love their seafood. This
method of estimation of future demand for products is referred to as__________________.
a. Composite sales force opinion b. Survey of buyer intention
c. Past sales analysis d. Statistical demand analysis
e. Test marketing method
69. The USDA, on November 16, released its most recent forecast of meat production and consumption
through the rest of 2012 and the year 2013. These projections indicate a continued decline in the per
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capita consumption of all four major meat categories: beef, pork, chicken and turkey. But, consumption
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is not the same as demand. For example, when prices rise or incomes fall, the per capita consumption of
a product may drop but not necessarily the demand for the product. Animal advocates are interested in
reducing per capita meat consumption, but they are even keener on actually reducing the demand for
meat. Which of the following describes the advantage of statistical demand analysis?
a. Determines the effect of factors like marketing expenditure and price of product on sales
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b. To find a business’s potential demand in order to make accurate decisions about pricing business
growth and market potential
c. To enter into a new market
d. All of the above
e. (b) and ( c)
70. If the target market for Coca-Cola is the US market for soft drinks, then when Coca-Cola took their
products to Russia, that was an example of market development since the market potential for Coca-
Cola increased. The Volkswagen Beetle is increasing its market potential by making its newest version
more masculine. Finally, Evian placed their bottled water in both the regular and health sections of
grocery stores. This expanded their market potential by appealing to different psychographic
segments—in effect broadening their target market to include regular water drinkers and health-seeking
water drinkers (who perhaps before bought specific heath drinks).It is also possible for existing brands
to find new uses for their products. This classification of market is referred to as_________.
a. Potential markets b. Nascent market
c. Target market d. New market
e. Qualified market
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71. GM has identified about 40 different ‘customer needs” and correspondingly, 40 different market
segments in which it would present with its vehicles. For example, it has targeted the Pontiac at active
sports- oriented, young couples, the Chevrolet at price conscious young families, the Oldsmobile at
affluent families, and the Buick at older, more conservative couples. In the light of the said example
identify the need from the following for market segmentation.
a. Grouping consumers who have similar tastes and design product mix in such a way so as to appeal
to the target market
b. Increase in market share and higher profits
c. Companies that lack resources to tap mass market can adopt segmentation.
d. (a) and (b)
e. (a), (b) and ( c)
72. Eureka Forbes uses direct salesmen to visit different houses and sell their famous water purifier
AQUAGUARD, after providing demo and information about the product. That way Eureka Forbes is
able to target mass market individually, who falls into the segment of consumers installing water
purifiers in their household. The strategy adopted by Eureka Forbes is-
a. Mass marketing b. Segment marketing
c. Individual marketing d. Local marketing
e. Niche marketing
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73. Harley Davidson manufactures higher end niche bikes, Mont Blanc manufactures higher end platinum
tipped, gold covered higher end fountain pens for connoisseurs of writing instruments, Abercrombie and
Kent markets their very exclusive higher holiday packages to exotic destinations for higher end
customers. In the light of the above examples of niche marketing, which of the following are the key
features of niche marketing?
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a. Sellers cater to a very specific market segment which requires more attention and very high quality
of services.
b. Operates in very high competition among sellers to target the focus group
c. Segment size is small and sellers can charge premium pricing for the higher quality and services.
d. (a) and ( c)
e. (a) and (b)
74. Titan created a sub brand, FASTRACK. These watches are specifically designed for younger
generation. While SONATA and the steel series caters to the older and professionals. This is an example
of segmentation classified based on______ factors.
a. Geographic b. Demographic
c. Psychographic d. Behavioural
e. Technological
75. Hallmark cards, greeting cards for all occasions used the strategy of promoting its cards in a manner
that, be it any occasion, the right kind of card can be found by the customer and thereby enabling
him/her to express themselves to the receiver of the card perfectly. The variable highlighted in this
segmentation is__________.
a. Occasions b. Benefits sought
c. Usage rate d. Loyalty
e. Attitude
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76. Tata Motors manufactures and sells their cars in the Asian, East European and Middle East through a
vendor tie up in the respective locations. Citigroup, headquartered in US, have global operations divided
into Europe, Asia, Middle East and Africa. This is an example of segmentation of Organizational
markets based on ___________variable.
a. Demographics b. Geographic
c. Company size d. Industry
e. Company technology
77. Liril of HUL has a commanding position in segmentation wherein its brands Pears and Dove are well
entrenched in the premium segment and therefore enjoy a differentiation advantage and are marketing
savvy. They strategise and position this brand in the premium segment by innovative marketing and
therefore enjoy continued access to this segment. HUL has been effective in its segmentation strategy by
being________.
a. Accessible b. Measurable
c. Substantial d. Differentiable
e. Actionable
78. Samsung Electronics, especially their television sets and air conditioners are targeted to the entire
market and not a particular segment. They also have positioned their smart phones to cater to the entire
market with phones being available from the range of Rs.10,000 to Rs.45,000. This is an example of
___________strategy employed by Samsung to target their customers.
a. Concentrated marketing b. Full market coverage
c. Segment by segment invasion plans
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d. Product specialization
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e. Market specialization
79. Marriott International has fifteen different types of facilities designed to meet the needs of different
types of market segments which are Marriott Courtyard targeted at over the road travellers, Ritz Carlton
targeted at luxury travellers, Marriott Conference centers targeted at businesses hosting small and
midsized meetings, Marriott vacation clubs targeted at travellers seeking to buy timeshares. This target
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marketing is an example of ___________ strategy.

a. Selective specialization b. Single segment concentration
c. Segment interrelationships and super segments d. Segment by segment invasion plans
e. Product specialization
80. Swarovski markets their very unique and exclusive crystal jewels at their exclusive outlets, targeting
higher end prestigious customers who have a taste for crystal jewels. Watch makers like Choppard, Tag
Haeur, Omega etc manufactures watches with finesse and precision engineering, targeted to premium
customers. These are examples of single segment concentration. In the light of the above, which of the
following are the key features of single segment concentration?
a. Benefits marketers with high sales as all his marketing efforts are concentrated on the segment.
b. Marketers can serve single segment successfully if improvisations are made to the product in
keeping with changes in the tastes and preferences of their customers
c. If their customers stop patronizing the product for some reason, the marketer will face severe loss
d. (a), (b) and (c)
e. (a) and (c)
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81. Starbucks mission statement says “ To inspire and nurture the human spirit-one person, one cup and one
neighbourhood at a time”. In the wake of the said example, which of the following commercial mission
statements consist of the essential elements?
a. Identify and describe the key market
b. Spell out the contribution which is, mentioning the product or service provided to the key market
c. Highlight the distinction by mentioning what makes the product or service unique that the key
market would chose this product or services over the others
d. (a) and (c)
e. (a), (b) and (c)
82. At Dell computers, segmentation initially started as a sales concept to effectively meet the needs of
different groups of customers. It soon evolved into a series of complete business units, each with its own
sales, service, finance, IT, technical support and manufacturing arms. They envisaged that the direct
connection to the customers would enable them to understand the different needs of different customers.
The highlighting features of a SBU are-
a. Profit center b. Objectives are same as parent company
c. Strategic business units is an individual business unit with its own mission statement and self
sufficient in conducting business
d. (a) and (c)
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e. (b) and (c)
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83. iPod when released, Apple invested money to maintain growth, distribution and promotion in order to
maintain their product in the high growth rate and high market share category. Wal Mart, with its most
competitive pricing was able to secure the high growth rate and high market share category. Based on
the BCG matrix, the mentioned examples fits into which category of the matrix-
a. Stars b. Cash cows
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c. Question marks d. Dogs

e. Shooting stars
84. DVD players of Sony are cash cows which have secured a hold in the market, but are onthe verge of
replacement of the DVD’s with digital downloads. Sony, needs to manage its products such as the above
mentioned so that they continue to generate revenue to fund star products. In the light of the said
example what are the key features of cash cows based on BCG matrix?
a. Functions in a mature market b. Low potential for growth and high market share
c. High investment and high revenues d. (b) and (c)
e. (a) and (b)
85. DELL, after recognizing software service as a potent market penetration tool, it is assembling a services
portfolio that now includes email disaster recovery, spam/virus filtering and archiving via its Message
One acquisition. Pakistan State Oil penetrate in Pakistan market from 40% to 65% in the duration of
four years by developing new retail outlets. The said examples, as per Ansoff matrix, falls under
___________category.
a. Developing new products in existing markets
b. Increasing the sales and profits for existing products in existing markets
c. Increasing sales and profits for new products in existing markets
d. Market development for existing products in new markets
e. Penetration of new products in new markets
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86. Walt Disney diversified from making animated movies to theme parks and vacation properties. Canon
diversified from camera making company into producing whole new range of office equipment. Based
on the examples mentioned above, the fourth quadrant of Ansoff matrix features______________.
a. Development of new products in the new market
b. Adopted by companies if the current market is saturated due to which revenues and profits are lower.
c. The prospect of entering a promising business outside the scope of existing business unit is promising.
d. (a) , (b) and (c)
e. (a) and (b)
87. Nestle Corporation adopted the strategy to acquire good human talent, quality equipment, technology of
the competitors. By integration with other firms, Nestle managed to come up with attractive product
line. Today Nestle exists almost in every part of the world with large market share. Most of integration
in 1980 with Rowntree Mackintosh amounted to euro 2.55billion. This integration helped Nestle to
bring attractive product line in the confectionery market. It also ensured competitive advantage, higher
market share, more profit and long term existence for Nestle. Nestle, while planning for their new
business adopted the strategy of_______________.
a. Intensive growth strategy b. Integrative growth strategy
c. Diversification growth strategy d. (a) and (c)
e. (b) and (c)
88. Starbucks partnered with Barnes and Nobles bookstores in 1993 to provide in house coffee shops
benefitting both retailers. Later on, they partnered with The Coffee Connection to bottle,to distribute
and sell the popular coffee based drink, Frappuccino. Starbucks initiated the strategic alliances to gain
advantage in terms of ______.
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a. Work together to achieve objectives that are mutually beneficial
b. Sharing of resources, information, capabilities and risks to attain mutually beneficial objectives
c. Acquire / buy the other company’s innovations without having to invest in new R&D
d. (a) and (b)
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e. (b) and (c)

89. Japanese company, Yamaha, which had struggled to capture 40 percent of the world piano market only
to see global demand for pianos decline by 10 percent a year. The way out of Yamaha’s doldrums was
to be found neither in cost cutting nor in becoming the next Steinway. It was found in player pianos.
Given the shrinking sales figures, the challenge was to bring some value out of the world’s existing 40
million pianos, many of which were sitting in the living rooms collecting dust. So Yamaha created a
digital and optical technology that would distinguish among 92 degrees of strength and speed of key
touch. Identify the value adding strategy adopted by Yamaha from the following.
a. Provide value for customers rather than aping customers
b. Identify the customer needs precisely and create value delivery in the products that specifically
meet those needs
c. Manufacture the product first, fixing the price and then sell it
d. (a) and (b)
e. (a) and (c)
90. The mission statement of Dow Chemical Company says “ To constantly improve what is essential to
human progress by mastering science and technology. The mission statement of an organisation, in
order to be effective, needs to have __________ characteristics.
a. Feasibility b. Precise and clear
c. Distinctive d. (a) and (c)
e. (a) , (b) and (c)
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91. The Xerox Corporation started its thrive towards TQM with the invention of PARC, Palo Alto Research
Center, which was created to do research in computer science, electronics, and material science. The
Xerox Corporation focuses on benchmarking, a reduced supplier base and leadership teams as a way of
producing TQM. The strategies that Xerox uses include issuing surveys and developing events for
employees to take part in to further benefit the corporation. The highlighting features of TQM are____.
a. Continuous process to eliminate defects or mistakes in products or services
b. Reduction of costs while improving the production process through Six sigma methodology
c. Training provided to all employees of organization to improvise the business process.
d. (a) and (c) e. (a), (b) and (c)
92. Ebay and Craigslist are online shopping websites wherein more and more buyers and sellers use the site
and therefore making the website more and, more valuable to customers. This makes it extremely
difficult for new entrants to start something that can compete with these websites and lure customers
away. Based on Porters five forces model that influence competition in an industry, these examples fall
under___________category as per the model.
a. Intensity of rivalry among firms b. Barriers to entry
c. Threat of substitutes d. Bargaining power of buyers
e. Bargaining power of suppliers
93. Malaysian Airlines ( MAS)is faced with threat of intense rivalry because various large equally balanced
competitors such as Air Asia, Tiger Airways, Singapore Airlines etc provide almost similar services. As
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a result MAS is in high rivalry because more firms are competing with same margin segments and
resources. MAS have successfully differentiated their product as full services carrier. Rivalry in slow
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industry growth becomes more intense as firms battle to increase their market shares. The main
competitor of MAS being Singapore Airlines, MAS intends to reassess the effectiveness of its route
network both international and domestic by reviewing the viability of the existing fare structure and
routes and also the realigning of its aircraft capacity to markets that offer the greatest opportunities.
Which of the scenarios reflect the intense rivalry among the firms?
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a. When switching costs for customers are low.

b. Presence of large number of players operating in the industry with almost equal market shares
c. When there are few large players
d. (a) and (b) e. (a) and ( c)
94. Wal-Mart is extremely powerful as a buyer. It has enormous reach and thousands of end users. It also
buys in large quantities and controls how a customer accesses the brands and products that it stocks.
This means that WalMart can dictate prices, delivery times and product quality from its suppliers. The
suppliers in turn cater to this pressure by basing their operations close to Wal Mart headquarters and
allowing easy access to the company’s purchase departments to test products and negotiate terms. Wal
Mart can easily switch suppliers which gives the company additional power to dictate terms. In certain
cases Wal Mart can also integrate vertically. Considering the said example, which of the following
circumstances make the bargaining power of WalMart high?
a. Suppliers industry is dependent on WalMart as a largest buyer for large percentage of total orders.
b. When WalMart as a buyer can purchase input from several companies at a time economically
c. WalMart as a buyer can integrate horizontally to provide their own needs and use it as a threat to
force down the prices
d. (a) and (b) e. (a), (b) and (c)
95. Sear’s as a super store faced a situation of stocks running out and leaving customers with a choice of
either purchasing only what is available and not what they want. With the entry of Wal- Mart, they used
the competitive intelligence system most efficiently and conducted in-depth study of the problems their
competitor Sear’s encountered especially with their distribution system. Based on the information
gathered, Wal-Mart built state-of-the-art distribution system so that their customers were not frustrated
by out- of-stock items, as were Sear’s customers. The highlights of this data collection are ______
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a. Information collected by Wal-Mart to bring in a competitive edge to Sears was legal and ethical
means of securing information.
b. Always collected from customers of Wal-Mart and Sears
c. Authentic Information collected from annual reports of Sears
d. (b) and (c) e. (a) and (c)
96. Unilever challenged Procter and Gamble for a long time in the US laundry detergent market, but in the
end chose to follow P&G and focus on profits. Dell faced an indirect attack for identifying a gap and
selling computers directly to customers and attacking IBM. Which of the following strategies is
followed in the above mentioned examples?
a. Market follower, market challenger b. Market follower, market leader
c. Market leader, market follower d. Market leader, market challenger
e. Market follower, market nicher
97. A South-West airline focuses to provide short haul point –to-point flights in contrast to the hub-and-
spoke model of main stream carriers like Delta. Based on Porter’s Generic competitive strategies, the
said example falls into ___________.
a. Cost leadership strategy b. Differentiation strategy
c. Focus strategy d. Market leadership strategy
e. Product development strategy
98. Ford pick-up truck competes fiercely with Toyota pick-up truck which in turn competes with Volvo
pick-up truck. Nike, the shoes and sportswear apparel maker competes against Adidas, and Reebok.
Starbucks, the coffee producer and retailer, competes against McDonalds Pacific coffee. This type of
competition is classified into _________category.
a. Generic competition
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b. Form competition
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c. Industry competition d. Brand competition
99. IKEA, the Swedish furniture retailer, revolutionized the furniture industry by offering cheap but stylish
furniture. Ikea is able to keep its prices low by sourcing its products in low wage countries and by
offering a very basic level of service. Ikea does not assemble or deliver furniture, customers must collect
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the furniture in the warehouse and assemble at home themselves. While this is less convenient than
traditional retailers, it allows Ikea to offer lower prices that attract customers. Under what circumstances
does Ikea gain cost leadership advantage-
a. By managing to keep cost of production lower than that of its competitors by managing its
resources efficiently.
b. By keeping prices low over competitors and introducing technology.
c. Higher profits due to lower profit margins and higher sales volume
d. (a) and (b) e. (b) and (c)
100. Earlier, airline travel was considered to be luxury as only a privileged few could afford to travel by air,
while most people preferred travelling by AC trains, which was a lot cheaper. However, with the arrival of
low cost carriers in the market like Deccan, Spice Jet, Indigo, etc, the customers had an option which was
better than travelling by train. Not only were the airlines prices were competitive as compared to the
railway stations, but also reduced the time travel with better facilities for travellers at airport terminals
compared to railway stations. Thus, customers preferred travelling by low cost airlines and this lead to a
decline in the number of premium railway passengers travelling by AC trains. Therefore, innovation in
services is also essential so as to act against threat of substitutes, and retaining market share against
cheaper or better substitutes. Whether a substitute product is really a threat depends upon ________.
a. Existence of close substitutes which are very similar to each other but for a subtle difference
b. The greater the cost for customers to switch to substitute product, the less the threat there is for
substitution.
c. People are less likely to switch to an alternative product if they think that if would be difficult to
replicate all of the features of their original product.
d. Buyers propensity to substitutes. e. All of the above
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UNIT 11: PRODUCT AND PRODUCT LINES
101. Apple has unveiled two new iPhones, the iPhone 6 at $199 and the iPhone 6 Plus at $299 price. While
both models include the same 64-bit A8 chip and the same general design, there are several differences
between the two phones. The iPhone 6 measures in at 6.9mm, while the iPhone 6 Plus is slightly thicker
at 7.1mm. Apple’s iPhone 6 Plus also has three major differentiating factors: optical image
stabilization for the camera, and a longer battery life, and an iPad-style landscape mode that displays
more content on the screen. Which of the following product personality is represented by the two
products iPhone 6 and iPhone 6 Plus?
a. iPhone 6 as Augemented product and iPhone 6 Plus as Potential product
b. iPhone 6 as Potential product and iPhone 6 Plus as Potential product
c. iPhone 6 as Augemented product and iPhone 6 Plus as Augumented product
d. iPhone 6 as Potential product and iPhone 6 Plus as Augumented product
e. iPhone 6 as Augemented product and iPhone 6 Plus as Expected product
102. Doctors prescribe Crocin, a drug commonly used to treat fever and pain. The main chemical in the drug
is Paracetamol. A chemist in a medical shop near All India Institutes Medical Sciences (AIIMS), New
Delhi suggests another drug that has the same chemical Paracetamol with a cheaper price to attract more
AIIMS patients. Once there was news in the press that few of the doctors insisted that patients should
buy prescribed drugs which were expensive, in order to get incentives from pharmaceutical companies.
Customers are happier with the drug suggested by the chemist because it is more affordable and
effective too. Customers also don’t like to be burdened with doctor’s incentives. Which of the following
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product personality suits the drug suggested by the chemist?
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a. Expected product since customers want a cheaper product
b. Augmented product because a chemist added value into the drug
c. Potential product where the drug has more future potential
d. Generic product that avoids taxes and advertising expenses
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e. Augumented product because Crocin offers more incentives to doctors

103. Chandu Tailor & Son Ltd, a London-based Gujarati Family business house, offers a “Golden Charter”
pre-paid funeral plan for clients. It is like an insurance for which the client pays at today’s price the
‘premium’ equalling £2,299 for the basic plan. When the client passes away, Golden Charter pays for
the funeral cost from the accumulated fund. Based on the usage of the product, ‘Golden Charter’ can be
classified as ---------.
a. Convenience product that makes funeral more convenient
b. Shopping product where customer spends considerable time and effort before buying funeral plan
c. Specialty product which is expensive hence planned well before the death
d. Industrial product which can be preserved for future usage after death
e. Unsought product which is purchased in the face of uncertainty of death
104. Box, headquartered in Palo Alto, Calif., has a playful take on seating arrangements as they added swings
to their office. Microsoft employees pull up a seat around the large touch screen tablet table.
Facebook employees can take advantage of a video game room. Google keeps some fun in mind at one
of their offices as employees can literally slide from one floor down to the next with well designed set
up. The seating arrangements, large touch screen tablet table, video game room and slide from one floor
down to the next with well designed set up, etc. facilitate more productivity. These types of set up help
office activities for better performance. The facilitating products are called -----------------.
a. Accessory equipment b. Consumable supplies
c. Capital equipment d. Component parts
e. Process material
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105. Colgate is a No.1 toothbrush and toothpaste brand in India with a range of products for oral care,
personal care, home care and professional oral care. The following list of products conveys the richness
of Colgate toothpaste category.
 Colgate dental cream  Colgate Herbal
 Colgate total  Colgate Cibaca family Protection
 Colgate visible white  Colgate Active Salt
 Colgate sensitive  Colgate Max White
 Colgate sensitive-Pro-Relief  Colgate Active Salt Healthy White
 Colgate Max Fresh  Colgate Optic White
 Colgate Kids Toothpaste
Which of the following is true about the product mix of Colgate?

a. Colgate has more width but less length
b. Colgate has more depth but less consistency
c. Colgate has more depth and more consistency
d. Colgate has less width and more length
e. Colgate has more width and more consistency
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106. Wipro provides a range of IT services, software solutions and research and development services in the
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areas of hardware and software design to the companies worldwide. The company also manufactures
range of products such as desktops, notebooks, net power servers, netStor storage and super computers.
It is also into business segment such as infrastructure engineering business. It has another segment that
is centered on its mobile construction equipment business and its material handling business. Wipro’s
Consumer Care and Lighting (CCL) business segment focuses on market segments in personal care and
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household lighting and office products. The personal care products include deodorants, fragrances, hair
care, bath and shower, skin care and other personal care products. Which of the following best describes
the product mix strategies of Wipro?
a. Introducing products to expand product mix into related areas
b. Introducing products to expand product mix into unrelated areas
c. Introducing products to expand product mix into related and unrelated areas
d. Eliminating products to contract product mix from unrelated to related areas
e. Eliminating products to contract product mix from related to unrelated areas
107. Lifebuoy is a brand of soap containing phenol marketed by Hindustan Unilever Limited (HUL).
Lifebuoy has journeyed from being a chunky red bar of soap to an evolved range of general and
specialized products across formats, offering solutions in the health and hygiene space. Lifebouy has a
strong social mission, promoted through its rural hygiene programme, Khushiyon Ki Doli, which
propagates the practice of hand washing with soap to reduce diarrheal deaths. Identify the product mix
strategy from the following that Lifebuoy focuses on.
a. Expansion of product mix from a chunky red bar to Super fast hand wash
b. Contraction of product mix by eliminating a chunky red bar
c. Altering existing product into specialized product to reduce diarrheal deaths
d. Positioning the product in hygiene space to reduce diarrheal deaths
e. Enhancing company image by introducing premium priced hygiene soaps
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108. Hyundai Motor recently launched the Grand i10 which is a car built on a different platform and will not
replace the current i10 and i20. The Grand i10 is a ‘Made for India’ model which will subsequently be
offered in other markets. To suit the tastes of Indian consumers, the company has done significant
changes to the model – a major one is a longer wheelbase to liberate more passenger space, with a
special emphasis on rear seat comfort. The industry experts believe that the Grand i10 could prove to be
a critical car for Hyundai in its attempt to compete against the likes of Maruti Suzuki Swift. Hyundai
wanted to manage its product line length in India with the _____________.
a. Line stretching by launching Grand i10
b. Line filling by introducing Grand i10
c. Line modernization by launching Grand i10
d. Line pruning by introducing Grand i10
e. Line extension by Grand i10 to compete against Maruti Suzuki Swift
109. LG Electronics (LG) has unveiled LG Smart Home at IFA 2014 in Berlin, the global trade show for
consumer electronics. LG Smart Home is built around the idea of unifying multiple smart appliances
into a single, cohesive system in order to increase convenience and simplicity. LG Smart Home users
can enjoy integrated control of their smart home ecosystem, using time in an intelligent way, energy-
saving modes such as leaving home, returning home and vacation. Which of the following strategies
does LG follow when the product is priced very high?
a. Rapid skimming to take out more money from customers
b. Slow skimming to increase customer base slowly
c. Rapid penetration to increase customer base fast
d. Slow penetration to increase customer base slowly
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e. Rapid skimming and slow penetration to exploit few customers
110. Mrs. D Sangeetha Reddy, Vice President and Cluster Head, Radio Mirchi (Karnataka and Kerala) said,
“A lot of companies have chosen to downsize, and may be that was right thing for them. We chose a
different path. Our belief was that if we kept putting great products in front of customers, they would
continue to open their wallets” while remembering Steve Jobs quote on new product development. She
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also advised students to visit the museum for new product failures in Washington DC. She also shared
various examples of companies that have failed to place the products in a new way before the market for
their sustainability. Where do you place Radio Mirchi on product life cycle?
a. Introduction stage because Radio Mirchi is new to customers
b. Growth stage because Radio Mirchi is innovating consistently to attract more customers
c. Maturity stage because Radio Mirchi is not able to attract new customers
d. Decline stage because Radio Mirchi is getting competition from TV channels
e. Death stage because Radio Mirchi is no more existing in the market
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UNIT 12: PRODUCT DIFFERENTIATION AND POSITIONING
111. Currently, the washing machine market in India is estimated to be about Rs 5,000 crore. The Indian
washing machine industry is clearly dominated by four players LG, Samsung, Whirlpool and Videocon
accounting for 75 % of overall market share. LG currently has 38% market share in washing machine
and 34% share in front loading category. LG F8068NDP ranks 1st in list of top washing machines in
India. This LG Washer with its Advanced Fuzzy Logic Technology senses the wash environment and
adjusts the wash cycle to give clothes the perfect wash. Lesser mechanical parts ensures least energy
dissipation which enhances the washing performance, ensures minimal noise and vibration, more
durability and energy saving. Which of the following product differentiation factor has contributed more
to make LG F8068NDp No.1?
a. Durable because mechanical parts are less
b. Designed with Fuzzy Logic Technology to give perfect wash
c. Energy saving because minimal noise and vibration
d. High performance because least energy dissipation
e. Its high cost has created more image in the market
112. In the overall passenger vehicle market, Maruti Suzuki had a share of 39.12% in FY13, more than
double that of Hyundai’s 14.27%. When the first quarter ended in June, both firms increased their
market share to 40.38% and 15.67%, respectively. But Maruti Suzuki has far wider reach too with
1,200-1,300 sales points against Hyundai’s around 690 showrooms. Apart from bringing new vehicles,
Hyundai is also expanding its reach by adding 30 dealers and 100 service centres, increasing the number
of dealers to 385 and service points to 970. The company also plans to increase its rural penetration by
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20% with the addition of 80 new outlets. Hyundai aims to overtake Maruti and wanted to take
leadership position in Indian compact car market at the earliest. As a management consultant which of
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the following advice do you provide Hyundai management to ensure service differentiation in the
Maruti dominant market?
a. Faster delivery by increasing more showrooms
b. Financial arrangement to provide loans for customers
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c. Increasing service centres across India

d. Introducing Online sales to make ordering easy
e. Increasing more show rooms and service centres across length and breadth of India
113. IBM has created a totally customer-oriented environment in the company where everybody sells. Every
employee has been trained to think that the customer comes first –everybody from the CEO, to the
people in finance, to the receptionists, to those working in manufacturing. IBM follows a rule: “If a
client has a request or question, IBM must respond within 24 hours”. IBM CEO, Virginia Rometty,
advices employees that they must move faster and respond more quickly to delight customers. IBM has
a greater success in the market due to -----------.
a. People differentiation by being different in customer service
b. Customer differentiation by treating different customers differently
c. Product differentiation by making every product Hi-tech
d. Image differentiation by spending more money on advertising
e. Channel differentiation by making customers direct access to the CEO
114. Amazon India has introduced ’One-Day Delivery’ service for 11 million products across 15 categories
in select pin codes across several Indian cities including Bangalore, Mumbai, New Delhi, Ahmedabad,
Hyderabad and Pune. Customers in Mumbai and Pune can place orders as late as midnight to receive
items the next day. For other pin codes the cut-off time to place orders under this offer is currently 3.00
pm. Orders placed with ‘One-Day Delivery’ service are guaranteed to be delivered the next business day
excluding Sundays and public holidays. Amazon.in will automatically refund shipping charges if orders
are not received by the promised day. Which of the following dimension does Amazon India follow to
attract customers?
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a. Personnel differentiation by recruiting qualified people

b. Product differentiation by stocking 11 million products
c. Customer differentiation based on providing services in various cities
d. Channel differentiation to serve customers fast
e. Technology differentiation by going online
115. A wine shop in The Dubai International Airport, Le Clos’, in Terminal 3 is selling the world’s most
expensive bottle of red wine to ever be retailed at $195,000. The limited edition 12-litre bottle
(Balthazar) of Chateau Margaux 2009 comes in its own ornate oak case and is engraved in gold by
master craftsmen. A mere six Balthazar of the exclusive tipple have been produced, with only three of
those set to go on sale. Along with 12 liters of fine wine in an oak case, Balthazar buyers also receive a
first-class flight to France to visit Château Margaux, a wine estate in France. The trip will include tours
of the vineyard and cellar, and a dinner hosted by managing director Paul Pontallier. Le Clos’ is
experiencing more rush for the brand ChateauMargaux 2009 due to ---------------.
a. Cost differentiation by selling the wine at $195,000 to attract the richest customers
b. Delivery differentiation by selling through Le Clos’, which is a flagship wine shop at Dubai
International Airport
c. Chateau Margaux wanted to create image differentiation for the brand Chateau Margaux 2009
d. Product differentiation by selling in 12-litre bottle with oak case and engraved in gold
e. Service differentiation by hosting a dinner by managing director Paul Pontallier
116. Fortis Escorts Heart Institute (FEHI), the first fully dedicated cardiac care facility in India, reasserted its
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leadership by winning the ‘Best Single Specialty Hospital - Cardiology’ title at the prestigious ICICI
Lombard CNBC TV18 Healthcare Awards, 2013. This is the second time in a row that the institute has
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won the award during its silver jubilee year, outperforming over 3,000 hospitals across India. Dr VR
Gupta, Medical Director, said, “We build up on the foundation of our expertise and skills to focus on
value medicine, quality-based medical processes, outcomes-based care, and evidence-based ethical
practice which are open to audit. We are already running a sustainable trans-catheter aortic valve
implantation (TAVI) for patients who are at high risk for the open heart surgery”. Which of the
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following factors has made Fortis Escorts Heart Institute the leader?
a. Serving customers for the last 25 years
b. Fully dedicated cardiac care facility in India
c. Value medicine, quality-based medical processes and evidence-based ethical practice
d. Lack of competition among heart institutes
e. Treating high risk patients
117. Tata Communications Payment Solutions Limited (TCPSL) is the first non-banking firm to launch its
ATM network ‘Indicash’ ATMs across India. TCPSL has plans to roll out 15,000 ATMs across India by
June 2016. Sanjeev Patel, the CEO of TCPSL said, “Indicash has pioneered a new industry model with
its focused execution and nationwide outreach. We are committed to working with the Reserve Bank of
India (RBI) in its drive to enhance inclusive financial services in India. Over 30 per cent of our ATMs
are in villages with less than 10,000 population, exceeding the RBI target mandate by 200 per cent”.
The ‘Indicash’ ATMs are equipped with various innovative features, and they accept all domestic debit
cards, where the first five transactions per month are free. Which of the following options reflect that
customers are positive about non-banking ‘Indicash’ ATMs network in India?
a. Banking ATMs are more crowded in India
b. Tata name is a trustworthy brand in India
c. Indicash ATM offers five transactions free in a month
d. Banking ATMs are not available in Rural India
e. RBI approved banks are busy with other banking operations
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118. Tata Nano was launched in March 2009 with an initial price tag of Rs. 1 lakh for the basic model.
Indians were so eager to buy Nano and 200,000 orders were booked before the first Nano had even
rolled off the production line. The Nano had failed to live up to the expectations after being touted as the
cheapest car to hit the roads. Its sales had been dwindling despite the company’s attempts to reposition
it. Its sales fell 71.7 percent compared to the previous year. Which of the following factors was more
responsible for Tata Nano’s failure in India?
a. Positioning as the cheapest car had diluted the brand image of Tata Nano
b. Severe competition from domestic and foreign players
c. Tata plant in Singur in West Bengal was closed down due to public protests
d. The heat and sound caused by its engine which was mounted rear below the seats ( Not clear)
e. Other Tata cars cannibalized Nano because they were more attractive
119. Indian customers treat Hindustan Unilever Limited (HUL) as an Indian company rather than a MNC due
to its close association with FMCG products. HUL has launched a number of brand extensions with
varying degree of success. Its flagship brand ‘Ponds’ has become household name in India. The brand
‘Ponds’ has a smooth transition from a cold cream to ‘Age defying creams’, soap, facewash, talc, anti-
dandruff shampoo, etc. with a considerable success. But the ‘Ponds toothpaste’ extension failed
miserably. Which of the following is the reason for the failure of Ponds tooth paste?
a. Colgate was already a leader in the tooth paste market
b. Confused positioning because Customers see Ponds brand as fragrance product for external
application hence could not attach Ponds label to the tooth paste.
c. Fight between Hindustan Unilever Limited (HUL) and its parent company Anglo-Dutch Unilever
d.
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Customers did not like the smell of Ponds tooth paste
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e. Over positioning of Ponds tooth paste with very high price
120. PepsiCo India’s BFY (better for you) products, Aliva range of baked crackers and Lay’s Baked potato
chips, are the latest victims of low sales and are conspicuous by their absence from the market. It is
learnt that PepsiCo India has stopped making Aliva products, which was launched with much fanfare
around two years ago with Bollywood stars Chitrangada Singh and VidyaBalan as brand ambassadors.
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Parle and Marico also had their share of BFY failures. While Parle had launched its ‘non-fried’ Monaco
Smart Chips with Aamir Khan as brand ambassador, Marico had introduced its baked snack under the
name of Saffola Zest. Both products bombed and were promptly withdrawn.The consulting firm, PwC
India, feels that “Indian consumers are more concerned about taste than health." Which of the following
strategies can be attributed to the failure of BFY products?
a. Positioning based on Outside-in strategy b. Positioning based on Inside –out strategy
c. Confused positioning d. Doubtful positioning
e. Over positioning
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121. Toyota Kirloskar Motor has launched ‘Innova Limited Edition 2014’ for the festive season. Only 1,500
units of the new Innova LE, in an exclusive brand new colour — Bronze Mica Metallic — besides
Silver Mica Metallic, will be available. Available in the diesel variant, the price starts from
Rs.12,90,947 to Rs.13,00,710. The Senior Vice President said, “The new Innova Limited Edition is a
perfect blend of space, superior styling and rich features that complement the travelling needs of a
family.” Which of the following suits the limited edition?
a. New to the world products b. New product lines
c. Additions to existing lines d. Improvement and revision of existing products
e. Repositioning
122. According to a recent study by Credit Suisse, the “wearables” market — currently concentrated in
health and fitness — is set to explode, reaching $30 billion to $50 billion over the next three to five
years, becoming the next major technology battleground like smartphones. Where do you place fitness-
tracking wristband,Nike’s FuelBand?
a. Revision of existing products b. Totally new product to the world
c. Additions to existing lines d. Product extension
e. Product positioning differently
123. The Mahindra Scorpio is a four-wheel drive full-size SUV manufactured by Mahindra & Mahindra
Limited (M&M). In 1996, the company planned to enter the SUV segment with a new product which
could compete globally. Since M&M did not have the technical knowhow to handle such an ambitious
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product, they devised an entirely new concept among Indian auto companies. The company
conceptualized, designed and manufactured ‘Scorpio’ in-house by roping in new executives who had
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worked in the auto industry in western countries, such as Pawan Goenka and Alan Durante. Which of
the following product development process was adopted by M&M to develop Scorpio in India?
a. Product managers b. Product committees
c. Product departments d. Product venture teams
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e. Product champions
124. P&G has produced some impressive products over the years. P&G organized the product development
process, which is a focal point of accountability for bringing together its R&D, sourcing, manufacturing,
marketing, sales, financial, IT, HR and other functions in service of a particular product. Identify the
product development process that really made P&G into the juggernaut today in terms of multiple
innovations.
a. Product manager’s b. Brand committees
c. Product committee’s d. Brand venture teams
e. Product departments
125. Every fifteen seconds a child dies due to water-borne diseases in the world. Tata Swatch was developed
by Tata Chemicals to serve villagers in the world. Sabaleel Nandy, Head of Water Purifier Business,
Tata Chemicals, says “In my knowledge, ‘Swatch’ is certainly the lowest cost water purifier in the
world”. Tatas have transformed an indigenous idea of using rice husk ash (RHA) for water purification
into a nanotech-enabled, cost-effective water purifier. Which of the following stages of New Product
Development Tata Swatch has reached?
a. Product development b. Concept testing and Analysis
c. Test marketing d. Commercialization
e. Idea screening
126. The Apple iOS 8.0.1 was pulled back an hour after it was released to sort out software bugs related to
call service disruptions and other complaints. The company quickly released iOS 8.0.2 to fix these
problems apart from adding some features to its appstore, mail and camera. This illustrates Apple’s -----
---stage of new product development.
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a. Alpha testing b. Beta testing

c. Gamma testing d. Test marketing
e. Commercialization
127. Google had been exploring self-flying vehicles for the past couple of years, and had now hired a new
team leader, Dave Vos, a longtime expert in automating systems for aviation, to take Project Wing from
research to product. Google’s advanced-research arm, Google X, is developing a system of drones to
deliver goods. In a recent research trip in Australia, the company delivered packages including
chocolate bars, dog treats and cattle vaccines to two farmers in Queensland. Google highlighted
examples of where drones were already in use, including in Bhutan, where drones are being used to
make deliveries of medical supplies to remote clinics and in Namibia, where the World Wildlife Fund is
trying to spot wildlife poachers. Google’s Drone is at ----------------stage of new product development.
a. Concept testing and analysis b. Idea screening
c. Test marketing d. Commercialization
e. Product testing
128. The Rs-3,500 crore purifier market in India is getting fiercely competitive with players such as Eureka
Forbes, Panasonic, Okaya, Godrej and Bajaj vying for a larger share in the low cost segment. Unilever
Foundation has partnered with PSI (Population Services International) for the low-cost sachet initiative,
as part of global efforts to target 800 million people estimated to be deprived of clean drinking water.
The sachets could be an extension of its low-cost purifier brand Pureit. The sachets can be dipped in a
jar or bottle of water and left for a while before consuming. It is as good as boiled water. Hindustan
Unilever Limited (HUL) has started in Bhopal, Madhya Pradesh, where it is distributing free Pureit
sachets to people. Pureit sachets are at ---------------stage of new product development.
a. Commercialization
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b. Test marketing
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c. Product testing d. Concept testing and analysis
e. Idea generation
129. At Gillette, everyone is involved in new-product development. On every working day 200 volunteers
from various departments come to work unshaven, troop to the second floor of the company’s gritty
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South Boston manufacturing and research plant, and enter small booths with a sink and mirror. There
they take instructions from technicians on the other side of a small window as to which razor, shaving
cream, or aftershave to use. The volunteers evaluate razors for sharpness of blade, smoothness of glide,
and ease of handling. When finished, they enter their judgments into a computer. In a nearby shower
room, women perform the same ritual.”We bleed so you’ll get a good shave at home," says one Gillette
employee. Which of the following activities of new product development are performed by Gillette
volunteers?
a. Generate more ideas on how to shave b. Screen various ideas on razor sharpness
c. Test various shaving concepts d. A, b and c
e. Test marketing
130. Ford, Renault-Nissan, and Daimler announced recently that they will jointly develop technology to
make ‘affordable, mass-market’ fuel cell vehicles by 2017, investing equal amounts into the effort. A
week before this announcement, BMW and Toyota announced a similar joint developmental deal.
Toyota says it will unveil a hydrogen fuel-cell-powered Sedan later this year will go on sale in 2015.
Hyundai (the iX35) and Honda said they were committed to fuel-cell-driven vehicles. The fuel-cell-
driven vehicle is at -------------stage of new product development among all the above automobile
companies.
a. Generating ideas to develop fuel-cell-driven vehicle
b. Screening ideas to develop fuel-cell-driven vehicles
c. Concept testing level to develop fuel-cell-driven vehicles
d. Product testing level to develop fuel-cell-driven vehicles
e. Test marketing level to introduce fuel-cell-driven vehicles in the market
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131. India’s Prime Minister, Narendra Modi, has made the BMW 7 Series 760 Li Security Edition his official
car. Modi had used a civilian version of the Scorpio during his campaigns leading up to the elections.
Since 2003, the Prime Minister of the country has been ferried around in an armoured BMW 7 series.
The 760 Li Security Edition is fully compliant with VR7 grade of ballistic protection. It protects its
occupants from a fire in the engine compartment or under the vehicle, tear gas on the streets, or a
jammed door. Safety features include an on-board fire-fighting system, an emergency exit and an
emergency fresh-air system. Identify the attribute conveyed by the brand ‘BMW 7 Series 760 Li’
Security Edition.
a. Attributes of BMW 7 Series 760 Li Security Edition
b. Benefits of BMW 7 Series 760 Li Security Edition
c. Personality of BMW 7 Series 760 Li Security Edition
d. Personality of Customers
e. Culture of BMW 7 Series 760 Li Security Edition
132. The brand Amazon.com was started as Cadabra but was later renamed Amazon after one of the largest rivers
in the world the Amazon River. The company founder Jeff Bezos wanted the name to represent _______
a. The potential for a larger volume of sales b. The potential for a greater amount of profits
c. The potential for a greater number of products d. The potential for a longer path of success
e. The potential for a bigger name in the market
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133. Koryo is a consumer electronics and appliances brand launched in the year 2006 in India. Koryo
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products found across India include AC, chimney, cloth dryer, coffee maker, color TV, cooking hob,
DVD player, electric cooker, etc. Kishore Biyani, the founder of Future Group, says ‘ Koryo accounts
for 12% of the total sales at our formats’. Koryo brand is identified with the ____________________.
a. Manufacturer’s brand b. Private brand
c. Generic brand d. National brand
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e. Foreign brand
134. The Mahindra Group is an Indian multinational conglomerate headquartered in Mumbai, India, with
operations in over 100 countries across the globe with the brand name ‘Mahindra & Mahindra’. The
Mahindra Group has launched a new corporate brand, Mahindra Rise, to unify Mahindra’s image across
industries and geographies. Why did Mahindra Group reposition Mahindra & Mahindra brand into
‘Mahindra Rise’?
a. The brand positions Mahindra products and services as aspirational, supporting customers’
ambitions to ‘Rise.’
b. The Advertising Standards Council of India (ASCI) instructed Mahindra Group to eliminate one
Mahindra from ‘Mahindra & Mahindra’.
c. Mahindra & Mahindra is creating a dichotomy among customers about the single Mahindra Group
d. Family war in the Mahindra Group lead one group to go for new brand identity as ‘Mahindra Rise’.
e. Mahindra Group decided not to duplicate Mahindra name twice as ‘Mahindra & Mahindra’ in its
brand name.
135. Tata Group has been ranked as India’s number one brand by Interbrand and Economic Times study in
2013 with brand equity of $ 10.9 billion. Tata brand has won the hearts of millions of people with
diverse and unique products and services. Gopala Krishnan, executive director of Tata Sons says, “Tata
stands for one thing when it’s on a car; something different when it is on a watch and quite another
when it is telecom. It is also means diverse things to different stakeholders – customers want quality and
reliability, shareholders want good returns and business partners want profits”. The study says, integrity,
understanding, excellence, unity, and responsibility make the Tata’s a winner all the way. Brand equity
is calculated based on the following parameters?
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i. Customer awareness ii. Quality perception

iii. Customer loyalty iv. Patents and Trademarks
v. Brand association vi. Shareholder value
vii. Profit
a. i, ii, iii, iv, v b. i, ii, v, vi, vii
c. i, iv, v, vi, vii d. i, iii, v, vi, vii
e. ii, iii, v, vi, vii
136. The 128 year old Coca-Cola Company is the world’s largest beverage company, refreshing consumers
with more than 500 brands. The product portfolio includes 17 billion-dollar brands. The brand ‘Coca-
Cola Classic’ is the largest and most recognizable brand in the whole world and the best selling product
from the Coca-Cola Company. Coca-Cola Company researched 40,000 Chinese characters and found a
close phonetic equivalent: Ko-Kou-Ko-Le, which can be roughly translated as “happiness in the
mouth”. Why is the brand name in China is successful?
a. It sounds like an international name and the meaning personifies the Coke brand in China
b. The other Coke brands are not so successful as that of Coca-Cola globally
c. Coca-Cola and ‘kokoukole’ denote same rhymes
d. Chinese customers are fond of western drinks hence accepted the brand in China
e. Both brands ‘Coca-Cola and kokoukole’ are promoted in red color
137. Reebok India appointed Eric Haskell as new MD to build corporate image of Reebok in India. Reebok
wants to leverage the rising fitness consciousness in India by positioning it as a fitness brand rather than
just as a sports-shoe. Reebok incorporates all types of fitness areas such as walking, running, training,
dancing, aerobics and yoga. Reebok management wanted to follow the ---------- in India.
a. Brand proliferation strategy
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b. Brand relaunch strategy
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c. Brand rejuvenation strategy d. Multi-brand strategy
e. Co-branding strategy
138. India’s richest are racing to own sports teams in the field of cricket, kabbadi, hockey and badminton. For
India’s rich, having a sports club of one’s own is the newest status symbol. India’s wealthiest man –
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Reliance Industries chief, Mukesh Ambani – who leads the pack with his IPL team ‘Mumbai Indians’,
being worth an estimated $200 million. Why does Mukesh Ambani sponsor IPL team ‘Mumbai Indians’?
a. To promote Reliance brand through IPL team ‘Mumbai Indians’.
b. To promote IPL team ‘Mumbai Indians’ as a corporate social responsibility
c. To promote Reliance as a profit making company
d. To win the auction of IPL team ‘Mumbai Indians’
e. To promote Mukesh Ambani as the wealthiest man of India
139. Raymond’s as a core brand carved a niche for itself by following a distinct branding strategy. Park
Avenue, the premium Raymond’s brand of ready-mades, was introduced to cater to the new line of
professionals who belonged to the liberalized era. For youth, more interested in casual wear, there was
the much-admired Parx range of casuals. Colour Plus is another high end casual wear brand of
Raymond’s. All these brands together improved the market share of Raymond’s, even while carving a
niche for themselves amidst tough competition. The distinct branding strategy is known as __________.
a. Multi-branding strategy b. Co-branding strategy
c. Brand rejuvenation strategy d. Brand relaunch strategy
e. Complementary branding strategy
140. Big format retailers such as WalMart and Big Bazar display lakhs of products which encourage self
service concept. ____________helps products to stand out on the store shelf, helping customers to
notice a particular brand and provide necessary details to make them a brand choice within the store.
a. Attractive sales person’s strategy b. Attractive fliers in the stores
c. Attractive pricing strategy d. Attractive point-of-purchase aisles
e. Attractive Packaging strategy
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141. E-tailerFlipkart launched a day long shopping event on 6-10-2014 called ‘Big Billion Day’ that offered
heavy discounts on a number of products ranging from 20-80%. Flipkart promoters Sachin and Binny
Bansal said, “The Big Billion Day is an unprecedented day for us as this is the biggest sale ever in India.
Our teams and sellers worked days and nights to make this sale a success – and our efforts paid off. We
got a billion hits on our site today and achieved our 24 hour sales target of $100 mn in Gross
Merchandise Value (GMV) in just 10 hours”. For example, Flipkart sold 1 lakh units of Xiaomi
MiPowerbank in just 10 hours. The pricing objective of Flipkart on ‘Big Billion Day’ is
_________________.
a. Surviving in the competitive market with players such as Amazon.in, snapdeal with offers
b. Raising market share with promotional offers
c. Making quality products accessible by offering heavy discounts
d. Stock clearance in the name of big billion day
e. To generate profit in short period
142. For the first time in India, a concept exclusive to the Arvind Store, that offers customized washed jeans.
Consumer can choose his style, fit, buttons, rivets. Customer can also personalize it with his zodiac sign
label & own signature in thread. Customers are given a wide range of latest designs that are regularly
refreshed keeping in mind emerging trends. Arvind provides each denim exactly to the customer’s
specifications and meet international standards. The market for customized washed jeans in India is
based on ______________________.
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a. Price competition b. Product competition
c. Promotion competition d. Customer value competition
e. Place competition
143. DHL Express announced an average price increase of 9.9% worldwide in September 2014 to implement
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from January 2015. The rate increase was meant to support growth and improve quality. Which of the
following could be the pricing objective of DHL Express?
a. To enhance market share
b. To make more profit to satisfy shareholders
c. Pricing includes R&D costs to improve the quality of product
d. To survive in the courier services market
e. To maintain the status quo in the present demand conditions
144. The LG’s G Watch R circular smart watch will be hitting the market shelves by October 2014 at a price
Rs. 23,900. The price tag of LG’s new G Watch R when compared to the company’s first Android Wear
smart watch indicates the company is pegging it as a premium wearable. The market for smart phones
nears saturation, LG, Sony, Samsung, and other electronics companies are counting on smart watches
for a fresh surge of revenue. Which of the following pricing method is selected by LG to fix the price of
G Watch circular smart watch?
a. Mark-up pricing to set a marked price in the market
b. Target return pricing to get back returns on investment
c. Perceived value pricing because consumers perceived G Watch price at Rs. 23,900
d. Value pricing to offer a valued product to customers
e. Market skimming price in order to recover product development costs as early as possible
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145. What triggered off the Bata Pricing strategy and who invented it? Marketing historians aren’t very clear
about its origins except that the number ‘9’ has always been special for Bata. Company founder Tomas
Bata was a ninth generation shoemaker determined to become the ‘King of Shoemakers’. When the old
man turned 90 some years ago, he reportedly told his near and dear ones that he wanted to live to be 99. So
it isn’t surprising that the number 9 is a good number in Bata’s pricing tradition and could partly explain
why it appears in all Bata tags. The selection of Bata pricing policy ending with ‘99’ is based on the
__________________.
a. Company founder Tomas Bata liked the number ‘99’
b. Psychological pricing where customers feel that they are paying less
c. Transfer pricing
d. Value pricing where Bata wanted to offer quality product at lower prices
e. Going rate pricing where Bata sets the price based on prevailing pricing patterns in the market
146. Indian government has revised prices of petrol in four metros such as Delhi, Kolkata, Mumbai and
Chennai after oil firms cut rates with effect from midnight of August 14/15, 2014. As reflected in the
data given below, why do petrol prices vary across various metros/cities in India.?
 Delhi: Current Price (Rs 72.51) Revised Price (Rs 70.33) Decrease in price (Rs 2.18)
 Kolkata: Current Price (Rs 80.30) Revised Price (Rs 78.03) Decrease in price (Rs 2.27)
 Mumbai: Current Price (Rs 80.60) Revised Price (Rs 78.32) Decrease in price (Rs 2.28)
 Chennai: Current Price (Rs 75.78) Revised Price (Rs 73.47) Decrease in price (Rs 2.31)
a. Geographical pricing where companies set different prices for customers situated at different
locations to adequately cover their delivery expenses
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b. Taxed pricing where multiple layers of taxes like sales tax, value added tax (VAT), state-specific
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charges (SSC), local body tax (LBT), entry tax and cess are different among various metros in India
c. Discriminatory pricing to charge different customers differently for the same product
d. Discounts and allowances for different customers
e. Promotional pricing so as to increase more petrol consumption
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147. HP Laser Jet P 1007 Monochrome Printer is available in India at the price Rs. 6,669. It has a print
capacity of 14 A-4 pages per minute and can print first page out in under 9 seconds. HP Laser Jet P1007
Black Cartridge is priced at around Rs. 3,000. Marketers price the spare parts or ancillary parts
relatively higher than the basic product in order to overcome the low profit share earned through the
sales of the basic product. Which of the following price adjustment strategy was followed by HP by
keeping Black cartridge at a higher price?
a. Two-part pricing by keeping different price for Laser Jet Printer and Black cartridge
b. Captive product pricing to capture the customer by keeping less price for Printer
c. Product bundling pricing to make Printer and cartridge as a bundle
d. By-product pricing where basic product and ancillary part are priced differently
e. Optional feature pricing where customers can by cartridge as an optional product
148. Renault India has launched the 2014 ‘Koleos SUV’ just before 2014 Auto Expo with more variants. The
entry-level model gets only single-tone alloys while the higher variants get dual-tone ones. The base
version also misses out on features like the BOSE audio system, ESP, Hill Start Assist, Hill Descent
Control, side and curtain airbags, electric seat height adjustment and leather upholstery in the cabin. The
Renault Koleos facelift is priced at Rs 22.33 lakh for the 4X2 base manual variant, Rs 25.13 lakh for the
4X4 manual and Rs 26.19 lakh for the top-end 4X4 automatic variant. Identify the pricing strategy that
Renault India has adopted to set the price for various Koleos SUV varients.
a. Promotional pricing b. Discriminatory pricing
c. Optional feature pricing d. Captive product pricing
e. Product line pricing
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149. HUL’s Vim has roughly 53.4 per cent market share of the utensil and cleaner segment estimated at over
Rs 1,900 crore, according to Nielsen. Reckitt has test-launched its new Dettol kitchen gel in order to
differentiate utensil category with antibacterial features. Hindustan Unilever (HUL) has come out with
its new anti-bacterial Vim liquid detergent. This move would pit the 100-year old Vim liquid detergent
brand directly against the 80-year old Dettol brand, one of Reckitt’s biggest brands. While Vim lemon
and Neem bar are priced at Rs 22 for 300 gm and Rs 10 for 145 gm respectively, its anti-bacterial liquid
detergent is priced at Rs 62 for 250 ml (with an introductory offer of Rs 13 off) and Rs 117 for 500 ml
(Rs 20 off). Which of the following pricing strategy Vim adopts to compete against Dettol in spite of
occupying a dominant position in the utensil and cleaner segment?
a. Emotional pricing b. Promotional pricing
c. Discriminatory pricing d. Experience curve pricing
e. Competitor’s reaction pricing
150. Sony Vaio F15213 Laptop is offered at Rs 41667 with multiple benefits. Sony provides customers with
a variety of exclusive software titles, worth Rs. 15000, absolutely free with the Sony VaioF15213
laptop. The laptop comes with Socialife, Microsoft Office (30 Days Trial), Music App, Imagination
Studio VAIO Edition (ACID TM Music Studio9, Sound Forge TM Audio Studio 10) Power DVD, etc.
Identify the product mix pricing strategy of Sony Vaio from the following.
a. Product bundling pricing b. Captive product pricing
c. Product line pricing d. By-product pricing
e. Optional feature pricing
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151. Reliance Industries Limited, which is a Fortune Global 500 company, has forayed into exploration and
production of oil and gas, petroleum refining and marketing, petrochemicals, textiles, retail and infotel.
The company directly sells the petrol and diesel produced in their refineries to the end customers
through petrol pump outlets spread across the country. This is an example of one of the following
‘levels’ of channels. Identify from the given options.
a. Zero level channel b. One level channel
c. Two level channel d. Three level channel
e. Own level channel
152. A new initiative was undertaken by the online Baby care portal Firstcry by gifting newborns in over
6000 hospitals across 18 cities with gift hampers that contain diapers and other baby care products. The
company has found out that the first brand tried by 75% of the first time parents of the newly born tend
to continue on with the same brand. About 25% of new consumers that are added at Firstcry.com every
month come from this initiative. If this offline marketing initiative of the online company is viewed
from the prism of an alternate channel arrangement by Firstcry, then it has primarily helped in reducing
one of the following gaps between the producer and the consumer. Identify from the following.
a. Possession b. Ownership
c. Information flow d. Financial flow
e. Risk flow
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153. Chinese mobile handset maker Xiaomi initiated its second flash sale in India through the Flipkart
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website on 5 August 2014 and sold all its 15000 Mi 3 devices in just two seconds. In India a customer
can purchase the handset only through Flipkart. Which of the following distribution models reflect the
above example?
a. Inclusive distribution b. Exclusive distribution
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c. Selective distribution d. Intensive distribution

e. Intrinsic distribution
154. Poornima went to a Samsung Store and asked the sales person regarding the availability of the 121 cm
Ultra HD LED TV from among the different models that were available from the company which were
displayed in the store. The sales person informed her that the particular model was available and it had a
price tag of close to 2 lakh rupees. Further the sales guy also promised her that she will be provided with
credit facility, free installations, free delivery and repairs from the vendor side. From the items listed
below, identify which one of the following is NOT a service utility?
a. TV model availability b. Credit facility
c. Free installations d. Free delivery
e. Repairs
155. Aachi Group is a Chennai-based Fast Moving Consumer Goods (FMCG) company focusing on masala
and food products. It is planning for pan-India expansion by 2016. For this purpose if the company
comes into an agreement with Jyothy laboratories Ltd.,a Mumbai based FMCG company that sells
brands such as Ujala fabric whitener, Exo dish wash bar, Maxo mosquito coils etc. Which of the
following can BEST be termed as an example?
a. Vertical marketing system b. Hybrid marketing system
c. Horizontal marketing system d. Geographical marketing system
e. Co-operative marketing system
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156. Alibaba, the Chinese e-commerce giant started their cloud business in 2009 as a tool for supporting the
company’s online e-commerce and payment business. Later they started offering their cloud services to
external customers who were basically small and medium Chinese firms. Given below are some of the
reasons why the Chinese companies are utilizing Alibaba’s services and not opting for the cloud
services of American giants like Amazon, Google, Microsoft or IBM even though they have better
technology. Identify the one option that DOES NOT fit into that category.
a. Political b. Control
c. Adaptive d. Economic
e. Technology
157. Colgate-Palmolive in its warehouses carries out a process called allocating for managing distribution
where larger quantities of homogeneous products are broken down into smaller quantities. It is also
known by one of the following names. Identify.
a. Delayering b. De-cluttering
c. Homogenising d. Breaking bulk
e. Apportioning
158. ITC produces Aashirvaad Atta in very huge quantities but the same cannot be sold directly to the end
customers as the volumes demanded by them are in very small quantities, Identify from the following
the gap that arises as the manufacturers produce in large quantities but in reality there is a need to break
these large numbers into smaller quantities to fulfill the needs of individual customers.
a. Need gaps b. Number gaps
c. Optimum size gaps
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d. Quantity gaps
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e. Individual gaps
159. Dominos has entered into tie-ups with farmers to provide particular quantity of wheat and select
vegetables to the company throughout the year. On the other end the company has tied up with Jubilant
Food Works Limited to sell domino’s pizza in India, Nepal, Bangladesh and Sri Lanka. This is an
example of a Vertical Marketing System (VMS). In a VMS, the producers, wholesalers, and retailers
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perform marketing activities in one of the following ways. Identify.

a. Aggressively b. Independently
c. Jointly d. By wholesalers
e. By retailers
160. Which of the following is NOT a reason for channel conflicts?
a. Incompatible individual goals and objectives of channel members

b. Lack of clearly defined roles and responsibilities of channel members
c. Manufacturer and channel members competing in the same market
d. Channel members selling products that are non-complementary with the producer’s product(s)
e. Producer increasing margins and other incentives for the channel members
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Read the paragraph given below and answer questions 161 & 162
161. DIESL, a Tata Group Company is a leading provider of end-to-end logistics solutions, with over 200
warehouses connecting 80% of the cities in India. Recently, the company has been declared the winner
of the Best 3PL Company of the Year Award 2014 at the Indian Supply Chain Logistics Summit &
Excellence Award 2014. Given below are some of the services that the company is providing to their
customers. Identify the one service attribute from the following that primarily DO NOT fall under the
logistics domain.
a. Order processing b. Inventory management
c. Transportation d. Calculating reorder points
e. Tax management
162. One of activities done by the warehousing division in DIESL is to sort out bigger shipments into smaller
ones and vice versa. One of the following activities best suits the above example. Identify.
a. Buffer stocking b. Transloading
c. Stock mixing d. Transmixing
e. Meta-logistics
163. Ramanujam Marketing Company (RMC) based in Bangalore specializes in stocking goods in bulk from
FMCG companies in India and selling it to intermediaries. Here RMC can be described by one of the
following names. Identify.
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a. Wholesaler b. Retailer
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c. Marketing Company d. Agent
e. Seller
164. When Google launched the Motorola mobile phones Moto-G and Moto-E in India, they sold it
exclusively through the online shopping portal Flipkart. In many cities across India, Flipkart delivers the
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same within a single day. This comes under one of the following categories in logistics. Identify.
a. Minimising distribution costs b. Reduced price for the customers
c. More profitability for Google d. Improved after sales service
e. Reducing cycle time
Read the paragraph given below and answer questions 165& 166
165. Onam is very important festival in Kerala. During the Onam season, electronics companies experience a
very high spike in sales. Soji, the Regional Manager (Sales) for Samsung understands this phenomenon
extremely well. So he has decided to stock an additional 40% of the normal stock of goods in his
warehouses in Kerala just before the Onam season. This extra stock can be expressed in one of the
following names. Identify.
a. Reorder point b. Usage rate
c. Economic order quantity d. Safety stock
e. Real time replenishment
166. During the Onam period, Soji ensures that all his wholesalers and retailers in the state get enough trade
displays, catalogues, special schemes for customers etc. to facilitate the sales of Samsung products
during the festive season. Which of the following terms best represent the endeavour by Soji?
a. Target Market b. Price
c. Place d. Promotion
e. Place
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167. Hindustan Unilever Ltd. (HUL) sometimes uses its warehouses as a junction for transporting goods
from one place to another. This is also known by one of the following terms. Identify.
a. Transiting b. Transloading
c. Transuding d. Piggy backing
e. Parachuting
168. In order to seek the benefits of providing customized vehicles and reducing the average delivery time
from 70 days to 14 days, Toyota has developed its own software that connects dealers to factories and
factories to suppliers. The integration of the value chain creates visibility for all members of Toyota’s
supply chain. When a request from a dealer is received by Toyota their software is able to figure out the
availability of parts nearby, the time to re-sequence the assembly line and whether the change would
unbalance the line by scheduling. Here the software used by Toyota is aimed at one of the following.
Identify.
a. Calculating reorder point b. Batch method processing
c. Calculating order lead time d. Calculating safety stock
e. Practicing just in time
169. Purchases department at L&T Cements ensures that there is a seamless flow of raw materials from their
department to the production department at L&T. To ensure the same, they do a thorough planning on
purchase requirements and their schedules based on production requirements. For the company, which
of the following terms represent the period between the dates an order is placed to the date the raw
materials are available for production? I
a. Economic order quantity b. Safety stock
c. Fixed order interval d. Order lead-time
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e. Production schedule interval
170. The Prima range of trucks from Tata Motors offers increased productivity and longer life making the
range an indispensable asset for large captive users, miners, transporters or owner-drivers. Sensing the
demand coming for the said trucks from across the country, the company has opened sales branches
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across India. Given below are some statements that relate to ‘manufacturers sales branches and offices’.
Identify the FALSE statement.
a. These branches are owned by the manufacturers
b. The branches are not required to sell goods to the buyers
c. They are responsible for providing support to manufacturers’ sales people
d. These offices are situated at a different place from the production plant
e. They do not carry any inventory
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UNIT 18: RETAILING
Read the paragraph given below and answer questions 171 & 172
After returning to his hometown from Iraq, where he was working as an executive in a pharma company
after the recent unrest there, Mathews decided to start a business on his own. After putting some thought to
it, he decided to sell some products that are well known in the market rather than going on his own. He
opened a store to sell Ayurveda medicines of Kottakkal Arya Vaidya Sala (KAVS) after taking necessary
permissions and after the making requisite agreements and payments to the Company.
171. Generally, in the above type of arrangements, some of the following things are observed to be followed.
Identify the one that does not fit into this model of business.
a. Right to do business using the trademark, trade name, product, or service of KAVS
b. Is a contractual and legally binding agreement between a Mathews and KAVS
c. Mathews has to pay an initial amount to KAVS and also pays a fixed portion of the monthly
income on sales to the company
d. A license or a franchise agreement is laid down, with specifications that are binding on the two
parties.
e. The power vests only with KAVS to terminate the agreement with a month notice period.
172. From the options below choose the right merchandising model followed in such stores.
a. These stores offer a wide selection of specially chosen goods pertaining to a single product line.
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b. These stores offer a wide selection of specially chosen goods pertaining to a multiple product lines.
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c. These stores offer a narrow selection of specially chosen goods pertaining to a single product line.
d. These stores offer a narrow selection of specially chosen goods pertaining to multiple product lines.
e. These stores offer a wide product line.
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173. Pizza Hutis following ‘business format franchising’ for expanding its business worldwide. Identify the
model that the company is following from the options given below.
a. The franchisees of Domino’s have the freedom to modify the franchiser’s product or/ and also
produce a new product with a license from Domino’s.
b. The franchisees of Domino’s have the freedom to only modify the franchiser’s product but not
produce a new product with a license from Domino’s.
c. The franchisees of Domino’s do not have the freedom to modify the franchiser’s product or/ and to
produce a new product with a license from Domino’s as the license clearly stipulates that the
business is to be carried out in a particular standardized pattern across the world.
d. A single franchisee operates across the world by using the trademark of Domino’s as well as its
methods of production, operational standards, marketing plans, etc.
e. A single franchisee operates across the world by using the trademark of Domino’s but not its
methods of production, operational standards, marketing plans, etc.
174. Nidhinis travelling with his daughter to Kochi because she was insisting him to take her to Lulu
shopping mall. The size of the said mall is over 2.5 million square feet in area and sells a wide range
and variety of products ranging from household items, electronics to groceries. Based on the
specifications, the mall can best be categorized as one of the following. Identify.
a. Supermarket b. Departmental store
c. Specialty store d. Hypermarket
e. Discount store
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175. Given below are some of the services provided by few companies/personalities. Identify the one that
comes under the category of ‘owned goods services retailing’.
a. Prakash Padukone training Saina Nehwal, the famous badminton star
b. Fortis Hospital conducting a heart operation on a patient
c. Maruti service centre offering maintenance services to one of its Swift customers
d. SBI providing ATM facility to its customers
e. Disney licensing their ‘Mickey Mouse’ character to a school bag manufacturer in India
176. Once inside the Oberon mall in Bangalore, Nagarjuna wanted a glass of Coke from the vending machine
placed nearby. Here the retailing strategy followed by Coca Cola Company through its vending
machines can best be called by one of the following. Identify.
a. Direct selling b. Direct marketing
c. Non-store based retailing d. Non-goods services retailing
e. Vendor retailing
177. Aman Singh started a small standalone retail outlet in Chandigarh by the name ‘Shopme’. He has in his
shop limited varieties and range of products. In which of the following ‘product assortment and
procurement’ strategy are the products offered in a limited number of categories with a limited range in
them; as the case with Shopme?
a. Narrow and shallow strategy
b. Narrow and specialist strategy
c. Narrow and deep product assortment strategy
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d. Wide and shallow product assortment strategy
e. Wide and deep strategy of product assortment
178. Readers Digest sends its list of books and publications by post to prospective customer’s homes across
India. The books selected by the customer from the list are posted by the publisher using the services
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India Post as a VPP (Value Payable Post) parcel to their address. This kind of retail sales is an example
of one of the following. Identify from the given options.
a. Home retailing b. Internet marketing
c. Catalogue retailing d. Automatic vending
e. Discount retailing
179. McDonald’s uses the franchising model to increase the number of outlets across the world. By using this
model for business expansion, McDonald’s is benefitted in some of the following ways. Identify the one
that is incorrect.
a. Low capital to be invested
b. Low risk of opening distribution outlets in new markets
c. Speedier expansion of business
d. Extended market penetration
e. More control when compared to doing business directly
180. Coca Cola is sold in more than 200 countries around the world. The company manages to distribute the
soft drink across the world through its bottlers spread far and wide. These soft drink bottlers are
categorized under one of the following types of retailing. Identify.
a. Trade name franchising b. Product distribution franchise
c. Business format franchise d. Bottling franchising
e. Geographic franchising
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181. Big Bazaar is using the mainstream newspapers, cable and satellite networks and outdoor advertising
media extensively to inform prospective consumers about the ‘5 days maha savings’ during 13th – 17th
August, 2014, wherein the retailer is giving huge discounts on all items including electronics, house
hold items, groceries, dress materials etc. Given below are some of the channels through which the
above communication was targeted towards the consumers. Identify the odd one out.
a. Television b. Hoardings
c. Internet d. Mobile phones
e. Radio
182. Myntra.com is an Indian online shopping retailer of fashion and casual lifestyle products, headquartered
in Bangalore, Karnataka, presently owned by Flipkart. Myntra is planning a big discount sale during
Dussehra festive season. If the company decides to use a personal communication channel to
communicate this offer to its customers, which among the following will they choose?
a. Newspapers b. Magazines
c. Journals d. Sign boards
e. E-mails
183. ‘For Earth’ is an NGO in Bangalorethat promotes the causes relating to environment and sustainability.
The NGO is planning a campaign on global warming in India starting with Bangalore. Which of the
following methods/tools will be more apt for the NGO to generate publicity?
a. Advertise in the cable & satellite network.
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b. Give advertorial in newspapers.
c. Rahul Dravid agreeing to inaugurate the campaign without any remuneration.
d. Using Shahrukh Khan as a mouthpiece for the campaign for a consideration.
e. Use ‘below the line’ tools of advertising in internet.
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184. India’s largest directly-owned gold jewellery chain, Kalyan Jewellers is converting the 50 ‘My Kalyan’
customer services centers in Karnataka, besides 159 in Kerala and 145 in Tamil Nadu to mini diamond
stores enhancing the availability of affordable diamonds. The advertisement aired on various media
channels very clearly tells a prospective customer that one can purchase a diamond based jewellry for as
less as Rs. 5000. Identify the primary and most important objective of the ad from the following.
a. Inform b. Knowledge
c. Liking d. Preference
e. Awareness
185. After Hero &Honda parted ways, Hero is rebranding its new name is as Hero Moto Corp. In this regard,
the company released a new jingle ‘hum mein hai hero’in cable and satellite networks across India,
which was composed and sung by AR Rahman. This endeavour by Hero primarily played a key role
from the following with regard to the communication objectives. Identify.
a. Awareness b. Knowledge
c. Liking d. Preference
e. Conviction
186. When ‘hike messenger’ an instant messaging app for mobiles highlights itself as the first Indian
messenger, the appeal used here is one of the following. Identify.
a. Moral b. Social
c. Technical d. Emotional
e. Rational
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187. When Microsoft launched Windows 8 operating system (OS), it advertised very heavily across various
media platforms about the benefits of Windows 8 when compared to other operating systems. The
company even highlighted special packages for students when they upgrade to the new OS. Which of
the following represents the marketer’s effort?
a. Positive communication strategy b. Push strategy
c. Pull strategy d. Consumer strategy
e. Marketer strategy
188. When an advertisement of the new Zest car from Tata Motors was being aired, there was some technical
issue with the signal uplink from the studios of a very famous news channel in India because of which
the voice over of the ad was completely distorted when it reached the TV screens. As witnessed above,
the effectiveness of the communication process is hindered by the disturbance during coding,
transmission and decoding process. This represents one of the following components in the
communication process. Identify.
a. Source b. Receiver
c. Coding process d. Medium of transmission
e. Noise
189. During Dussehra, Samsung offers heavy discounts and other freebees with its electronic products that
include UHD TVs, mobiles, Galaxy Tab, refrigerators etc. This is an instance of one of the following.
Identify.
a. Publicity b. Public Relations
c. Sales Promotion
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d. Personal Selling
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e. Direct Marketing
190. Oriflame Cosmetics S.A. (Luxembourg) is a cosmetics group, founded in 1967 in Sweden by the
brothers Jonas afJochnick and Robert afJochnick. The company sells personal care, accessories and
nutritional products across the world. Given below are some of the ways by which the company tries to
market its products to the consumers. Identify the odd man out from the list.
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a. Sending mailers b. Sending catalogues

c. Placing telephone calls d. Sending SMS
e. Meeting the customers directly
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Read the paragraph given below and answer questions 191 to 192
Praba’s VCare Health Clinic (P) Ltd. based from Chennai has launched ‘Vcare Shampoo Hair Color’. The
advertisement aired on television by the company highlights the easiness in dyeing hair vis-à-vis normal hair
dyes. The advertisement tells the prospective consumers that the hair can be dyed within 5 to7 minutes by
just shampooing your hair.
191. When the product was launched in the Indian market in 15 January 2014, the above said advertisement
coincided with its launch. Identify the main objective fulfilled by the commercial from the following.
a. Inform b. Persuade
c. Remind d. Desire
e. Action
192. The criteria by which Praba’s VCare Health Clinic (P) Ltd. allocated budget for promotion was based
on availability of funds after spending for other expenses for running the firm. Which of the following
methods is followed here?
a. Objective and task method b. Percentage of sales method
c. Affordability method d. Competitive parity method
e. Funds flow method
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193. When Mrs. E. Carolin Praba Reddy the CEO of Praba’s VCare Health Clinic (P) Ltd. met with the
representatives of advertising agency that produced the above ad, her directive was very short and to the
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point. She had said “through the ad the customers should find the product significant and different from
the other hair dye products in the market”. Here the CEO wants the advertising message to reflect in the
following characteristic(s). Identify.
a. Both believable and distinctive b. Both meaningful and distinctive
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c. Both believable and meaningful d. Believable only

e. Distinctive only
194. On August 9, 2013, Hindustan Unilever (HUL) launched its Pepsodent Germicheck’s advertisement
which compared the toothpaste’s germ attack power with Colgate Strong Teeth claiming that Pepsodent
Germicheck has "130% superior" germ attack power over Colgate Strong Teeth after four hours of
brushing. Which of the following represents the approach used in the ad?
a. Refutation advertising b. Inoculative advertising
c. Emotional advertising d. Comparative advertising
e. Competitor advertising
195. Ravi, a sales representative with Kent water purifiers visited Hema’s home and explained the benefits of
Kent RO purifiers. After the demo, Hema decided to purchase the water purifier model named Kent
Pride Home RO System by paying Rs. 12,937. Here the promotion method that resulted in the
successful sale is represented by one of the following. Identify.
a. Sales promotion b. Personal selling
c. Direct marketing d. Publicity
e. Public relations
196. Marico Industries Ltd. is giving 25 % extra with their 200 ml pack of Parachute hair oil for a short
period of time. Given below could be some of the objectives of such an exercise. Identify the one that
does not fit into that category.
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a. Encourage the customers to buy more units or to induce more usage

b. Attract new customers
c. Counter competitors’ promotional activities
d. Increase short term sales
e. Helps to maintain the same levels of sales even after the end of the above said sales promotion
period
197. Coca Cola India has taken initiative in planting trees and replenishing ground water in locations where
they have bottling plants across the country. Which of the following represents such kind of activities
undertaken by Coca Cola?
a. Publicity b. Public relations
c. Sales promotion d. Below the line advertising
e. Above the line advertising
198. LG has decided to spend heavily on promotion this Onam season in Kerala as maximum volume of
sales for the electronic giant takes place during this period. Given below are some of the promotional
activities the company is planning to undertake during Onam. Identify the odd one out.
a. Price discounting b. Free gifts or samples
c. Money refunds and rebates d. Buyback allowance
e. Point-of-purchase displays
199. Hindustan Unilever is planning to launch a new ayurvedic shampoo by the end of this year. The
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company is planning to offer trial packets free with its Clinic Plus shampoo range. This is an example of
one of the following. Identify.
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a. Consumer sales promotion b. Trade sales promotion
c. Marginal sales promotion d. Consumables sales promotion
e. Rebates
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200. CavinKare is offering its retailers a temporary price reduction for purchasing a particular quantity of
Cavin’s Milkshake. Which of the following trade sales promotion techniques suits the above example?
a. Buyback allowance b. Buying allowance
c. Dealer loader d. Free merchandise
e. Merchandise allowance
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Read the paragraph given below and answer questions 201 to 202
Godrej Interio is a business unit of Godrej & Boyce Mfg. Co. Ltd., part of the Godrej Group which is one of
India’s largest engineering and consumer product groups. Godrej Interio is India’s largest furniture brand.
The brand offers its customers comfort and aesthetics while delivering well designed fun and functional
furniture solutions. The company deals in home and office furniture, along with solutions for laboratories,
hospitals and healthcare establishments, education and training institutes, shipyards and navy, auditoriums
and stadiums. The company has presence across India through its 50 exclusive showrooms in 18 cities and
through 800 dealer outlets.
201. Ravi is an employee working for the last three years at the Godrej Interio showroom in Chennai. He
basically caters to the routine and repeat orders that come from clients in the hospitality industry and do
not conduct any field visits. From the following list, identify the category of sales person he belongs to.
a. Field order takers b. Inside order takers
c. Client takers d. Systematic takers
e. Routine takers
202. Murali also works at the Chennai showroom, but his role comes once the sale is done. He specialises in
installing the furniture at customer’s location and also helps the customers from time to time when there
are any issues with the product. In which of the following categories can he be grouped under?
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a. New business sales personnel b. Current customer sales personnel
c. Support personnel
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d. Installation personnel
e. Customer personnel
203. SanjoyBhagat, a sales person with the Imphal showroom was attending a marriage of one of his
relatives in Lamphelpat when one of the guests approached him regarding Interio products. From this
enquiry, he was able to make a sale worth Rs. 1.5 lakh. Here the lead came through one of the following
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ways. Identify.
a. People b. Events
c. Associations d. Trade fair
e. Marriage broker
204. Angomcha was a sales representative with the Pune branch. He recently got a sale and the leadcame
from ‘published sources’. Given below are some such sources. Identify the one that will not fall in that
list.
a. Seminars b. Conferences
c. Trade shows d. Trade Directories
e. Former customers
205. A prospective customer had called the Panaji office and enquired regarding the purchase of Godrej
modular kitchen model having a price tag of 2 lakh plus and wanted financing facility for the same.
Once Manoj, the sales representative with the Panaji office did a profile check on the person, heunder
stood that the person was a habitual defaulter on many earlier occasions. Now, suddenly the prospect
turned into one of the following for him. Identify.
a. Blow off lead b. Lost lead
c. Cold lead d. Warm lead
e. Hot lead
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206. Ananda is a newly joined sales person with the Bangalore showroom. He was asked by his boss to give
a sales presentation at Biocon. As he was a beginner he thought that it would be risky to give an
extempore speech. Also he was not confident enough. So he prepared PowerPoint slides and by hearted
the speech for his presentation at Biocon. Which of the following methods reflect the style followed by
Ananda?
a. Formulated approach b. Need satisfaction approach
c. Equalised approach d. Memory based approach
e. Canned sales approach
207. Samsung trains its executives and its sales personnel regarding the importance of improving relationship
with customers as the company knows that it brings in repeat sales in the long term and brand loyalty.
Identify the option from the following that suits the above given example.
a. Repeat sales approach b. Relationship marketing
c. Customer based marketing d. Value marketing
e. Long term marketing
208. In Bangalore, ITC tries to assign sales people based on a particular area like Bangalore North,
Bangalore South and Central Bangalore for its FMCG products. This is an example of one of the
following ways of organizing a sales force. Identify.
a. Geographic territory b. Customer
c. Product d. Matrix
e. FMCG territory
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209. Sunrise Water Heaters, a company selling solar water heaters believes that the addition of a salesperson
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is justified when the additional sales generated by him exceed the cost of hiring the person. Identify the
methodology used by the company in hiring the sales force from the following.
a. Incremental productivity method b. Equalized workload method
c. Cost plus method d. Marginal sales method
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e. Parity method
210. On its Website, the San Francisco-headquartered Uber describes itself as a ‘rideshare, taxi and taxi
alternative app’. Its services are ‘cashless’ because a prospective customer should register his credit card
details with the company when they sign up and Uber directly deducts the amount from this card for the
services rendered. A customer can use the app to hail a taxi in over 160 cities globally but not one of
them is owned by the company or bears its logo. In India, Uber uses an international payment gateway
to charge a customer (converting the rupees to dollars), routes the transaction through tax-friendly
Netherlands and then converts 80 per cent back to rupees to pay into the driver’s account through wire
transfer from the US-based Wells Fargo Bank. Identify the option from the following through which
Uber earns its money.
a. Straight commission compensation b. Straight salary compensation
c. Fixed compensation d. Static compensation
e. Salary plus commission
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UNIT 22: DEVELOPING AND MANAGING MARKETING
211. Ford aligned their business and manufacturing process from just manufacturing cars to manufacturing
quality cars, where the number one goal is quality. This helped Ford save millions on recalls and
warranty repairs. Ford has accomplished this goal by incorporating barcodes on all their parts and
scanners to scan for any missing parts in a completed car coming off of the assembly line. This helped
them guarantee a safe and quality car. They have also implemented Voice-over-IP (VoIP) to reduce the
cost of having meetings between the branches. Ford achieved quality, cost, safety etc in manufacturing
due to ------------ process.
a. Downsizing b. Customer relationship management
c. Outsourcing d. Reengineering
e. Budgeting
212. The importance of outsourcing can be understood by taking into consideration the example of Procter &
Gamble(P&G), Pilot study case, when the company outsourced its Java Programming to Manila,
Philippines, and Poland and saved about $ 28 million which is a significant amount in terms of cost
saving and profit maximization(Corbett, 2004). The overall corporate strategy is to minimise operating
costs but it is not necessarily a mean of gaining completive advantage because marginal cost might be
higher than it used to be. The risks associated with business process outsourcing (BPO) are-
a. Inferior quality of services b. Not achieving expected cost reduction
c. Legal, security and compliance issues d. (b) and ( c)
e. ( a) (b) and ( c)
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213. Dell sells PCs directly to customers and starts assembly after receiving a customer order. The company
leverages the Internet in dealing with both customers and its suppliers. Dell is praised for its ability to
manage its large worldwide supply chain and avoid unnecessary fluctuations by sharing demand data as
well as current inventory positions of components with many of its suppliers on the Internet. Del is
using Agile Anywhere, an Internet based technology, wherein, it is aggregating all product information
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in a single system on the Internet and enables Dell to disseminate all product changes instantly and track
them across the supply chain. This is an example of___________.
a. Benchmarking b. Customer centric management
c. Collaborative supply chain management d. Marketing Audit
e. Market excellence
214. Franchises for McDonald’s hamburgers, Pizza Hut, Subway, Burger King, and others carry U.S. trade
names as well as U.S.-style fast foods (and fast eating styles) throughout the world, sometimes with
region specific alteration to their products to cater to the local markets. Eg- Biryani offered by Pizza-
Hut in India. This phenomenon is referred to as-
a. Global products b. Global market place
c. Globalising d. Outsourcing
215. The UK clothing market, as defined by Deutsche Bank in their recent report, is valued at £26.9 billion.
It is one of the most concentrated retail markets in Europe, with the top ten retailers accounting for some
42% of the market.------------ helps identify the company’s position in relation to its competitors.
a. Sales analysis b. Annual plan control
c. Financial analysis d. Market share analysis
e. Budget analysis
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216. -------- is where companies identify the strengths and weaknesses of their business units and adopt the
best practices in the industry. However, -------- is a systematic evaluation of marketing activities and
strategies of a firm.
a. Marketing Audit, Marketing excellence review
b. Marketing Excellence review, Marketing audit
c. Efficiency control, profitability control
d. strategic control, Marketing Audit
e. Marketing excellence review, Strategic control
217. Companies, to stay abreast in the competitive markets, have to adopt the “ customer centric approach”.
Strategies that enables companies to have an edge over their competitors are-
a. Align business process at all levels to meet customers’ needs
b. Orienting and training employees at all levels towards customer perception and services
c. Involving only the personnel from marketing department
d. (a) and (b)
e. ( c) and (b)
218. A multinational drug company has its organisational structure as follows. The country heads reporting
to the CEO and under each country head, the vice president of the respective regions of the country
reporting to the country head. Which of the following suits the organisational structure that is reflected
in the above scenario?
a. Geographical
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b. Functional
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c. Product d. Marketing
e. Sales
219. The process of stressing on company wide marketing philosophy where in, every department and every
individual are expected to contribute to the marketing activities of the company is called--------
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a. Modern marketing company

b. Marketing department
c. Sales department
d. Modern marketing department with auxiliary functions
e. Individual marketing department
220. CISCO systems, a company that has changed its workforce strategies in recent times, laid off 20% of its
people in 2001 and resorted to this strategy with its employees as last alternative, the new approach
being in tune with Cisco’s long-term talent management strategy of building internal talent rather than
buying it in the external labour market. This process is called-
a. Downsizing b. Benchmarking
c. Empowering d. Mergers
e. Acquisitions
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221. The menu at McDonald’s varies based on the location of the restaurant. The company focuses on
marketing popular items within the country. Global marketing is especially important to companies that
provide products or services that have an universal demand such as automobile and food. The MNC’s
can leverage certain advantages by global marketing . Identify them from the following.
a. Procuring quality materials at source at economical rates
b. Meet the expectations of shareholders, future growth prospects
c. Increase market share globally
d. (a) and (b) e. (a) and ( c)
222. CSEZ, is a Special Economic Zone in Cochin, in the State of Kerala in southwest India, set up for
export- oriented ventures. The Special Economic Zone is a foreign territory within India with special
rules for facilitating foreign direct investment. The Zone is run directly by the Government of India.
Cochin SEZ is a multi-product Zone. Cochin is strategically located. It is in southwest India, just 11
nautical miles off the international sea route from Europe to the Pacific Rim. Cochin is being developed
by the Dubai Ports International as a container transhipment terminal with direct sailings to important
markets of the world, which could position it as Hub for South Asia. The objectives of FTZ’s can be-
a. Ensure economic growth of its members
b. Integrate economic policies of member countries
c. Increase foreign capital inflows
d. (a) (b) and ( c) e. Only (a) and (b)
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223. The Indian government allows a price preference for local suppliers in government contracts and
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generally discriminates against foreign suppliers. In international purchases and International
Competitive Bids (ICB’s) domestic companies gets a price preference in government contract and
purchases. What is this phenomenon referred to as?
a. Trade barriers b. Economic barriers
c. Socio- cultural aspects d. Legal aspects
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e. Socio economic aspects

224. The liberalisation of the Indian economy in 1992 brought a slew of international brands to India. Many
of these brands have been licensed to Indian companies. Arvind brand represent Wrangler, Arrow,
Nautica, Jansport and Kipling. The Murjani Group is the licensee for FCUK and Tommy Hilfiger.
Beverly Hills Polo Club (BHPC) is licensed to Spencers Retail. Licensing means –
a. Renting or leasing an intangible asset like a patent or trademark for a fee or loyalty
b. Companies sell their products in foreign shores using middlemen.
c. Companies in order to sell their products in foreign markets enters into an association with a partner
company in that country
d. Exporting the goods to sell in the foreign markets through domestic intermediaries.
225. West Asia, formerly known as the ‘Middle East’, was one of the first few regions where Tata vehicles
were seen outside India. It was in the 1960s that Telco (now Tata Motors) first exported its medium
commercial vehicle (MCV) trucks to Kuwait. Business built up slowly. Export was done mainly by
participating in international tenders or by following up on business enquiries. In those years the
company’s focus was on the domestic market; there was a very high demand for their vehicles. Telco
did not have enough sales personnel in the region. It would follow up on leads given by Tata
International, which had offices in the region, contacted customers and sourced orders. Which type of
organisational structure did the company adopt to cater to the international markets?
a. Export division b. International division
c. Global organisation d. (a) and (b)
e. Only ( c)
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226. In Oct2001, Samsung launched its highly successful promotional scheme, the Samsung phod ke dekho
offer which instantly boosted its sales volume. Subsequently, they re- launched this campaign as phir se
phod ke dekho which was very successful and generated a sales volume of Rs 380 Crore. In March
2003, they launched Samsung Rang de kismet offer for their frost free refrigerators which entitles their
customers of lucky gifts worth 4 crore upon purchase of their frost free refrigerators. The promotion
derives its name from Rang de kismet mirrors which were handed to their customers upon them
purchasing Samsung frost free refrigerators. While formulating promotional strategies for global
markets, the aspects to be borne in mind are___________.
a. Cultural diversity b. Socio economic diversity
c. Communication diversity d. (a) (b) and (c)
e. Only (b)
227. The restaurant industry is known for yielding low margins that can make it difficult to compete with a
cost leadership marketing strategy. McDonald’s has been extremely successful with this strategy by
offering basic fast-food meals at low prices. They are able to keep prices low through a division of
labour that allows it to hire and train inexperienced employees rather than trained cooks. It also relies on
few managers who typically earn higher wages. These staff savings allow the company to offer its foods
for bargain prices. Global companies manage their competitiveness by constantly reviewing their
pricing strategies in the countries they operate. This pricing strategy is influenced by internal and
external factors namely-
a. Foreign exchange, inflationary rates and Government regulations
b. Production and distribution costs c. Income level of target customers
d. (a) and (c) e. (a), (b) and (c)
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228. Instead of door-door service delivery or spending millions on marketing, physical locations and
overheads on its service delivery, Geek Squad partnered with Best buy-USA to offer their services right
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inside their stores. Thus, when Best buy seals a computer, customers know that Geek Squad can service
it if they have any problems. They even promoted the Geek Squad brand in the parking lot. The
partnership was so successful that eventually Best buy acquired Geek Squad. Identify the strategy from
the following to be successful.
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a. Sound distribution strategy b. Product dependent distribution strategy

c. Geographic and demographics d. Partnering with intermediaries
e. All of the above
229. A global marketing strategy involves the understanding of the importance of the following three major
perspectives; standardization, configuration-coordination and integration. Standardization in production
and marketing programs can have the benefits. Which among these is/are true?
a. Economies of scale in production and marketing
b. Consistency in dealing with customers
c. Ability to exploit good ideas on a global scale
d. (a) and (c) e. (a), (b), (c)
230. Shanghai Automotive Industry Corporation Group (SAIC) and General Motors, US, forms a partnership
of a 50:50 venture , exclusively to cater to the Indian market and to South East Asian countries. The
new company will be called General Motors SAIC Investment Ltd (GMSIL) and will be based in Hong
Kong. Small cars from Shanghai GM and mini-commercial vehicles from SAIC-GM-Wuling, SAIC and
GM’s manufacturing joint ventures in China, will be produced and sold in India. These products will
join GM’s global vehicles, allowing GM India to quickly add entries in growing market segments. “This
will help GM India take SAIC’s expertise in manufacturing cost-effective small cars and vans and use it
to develop suitable products for the domestic market. This is an example of –
a. Joint venture b. Merger
c. Foreign Direct investment d. Licensing
e. Indirect exports
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UNIT 24: DIRECT AND ONLINE MARKETING
231. Retailers who have compiled databases of their customers can then build mail-order sales through
catalogue mailings to maximize their market opportunities. Historically, many of today’s large
retailers—notably Sears, Roebuck and Company and Montgomery Ward—began as mail-order
businesses. Interestingly, that trend continues with others such as Amazon.con, Victoria’s Secret and
Eddie Bauer open their own retail outlets. This form of marketing is referred to as –
a. Catalogue marketing b. Database marketing
c. Kiosk marketing d. Internet marketing
e. Telemarketing
232. With a database containing detailed information on eight million customers, Thomson Holidays, one of
the leading mass tour operators in the UK, have a strong base to explore for business acquisition
purposes. Comprehensive data on attitudes, demographics, satisfaction, intention to purchase, buyer
behaviour and preferences, are collected on 90 per cent of Thomson customers through completion of
the Customer Service Questionnaires (CSQ). These questionnaires include address and party
composition and can be tied back to booking information to give a powerful combination of marketing
data. As an indication of the increasingly important role which database marketing will play in the
organization, Thomson has recently set up a Relationship Marketing Unit to manage a range of
marketing activities, driven by the customer database. The emphasis is on generating revenue through
customer retention – building loyalty and looking for cross-sell opportunities – as opposed to recruiting
new customers. However, this does involve an element of risk, such as –
a. Privacy issue
b.
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Unwarranted calls from the marketer to promote products
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c. Security issues
d. (a) and (b)
e. (a) (b) and ( c)
233. Eddie Bauer stores places computer terminals to order from the entire line of products not available in
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the retail store. Citibank automatic teller machines are placed in convenient and high traffic areas. These
are examples of –
a. Database marketing b. telemarketing
c. catalogue marketing d. Kiosks marketing
e. Data warehousing
234. Marketing and analytics solution provider Piqora claims its customers experienced a 67 per cent
increase in e-commerce revenue from Pinterest referral traffic between January and June of this year. In
addition to lifting e-commerce numbers, Piqora reported referral traffic from Pinterest to its clients’
websites was up as well between January and June of this year. His form of online advertising is known
as___________.
a. web community b. Web casting
c. Emailing d. Direct mailing
e. social media ad
235. Online retailers such as Amazon.com,Tigerdirect.com, Newegg.com use the internet as a means to
advertise and sell physical merchandise of one kind or another. They allow consumers to order
merchandise and have goods shipped them. Orbitz and Expedia.com, allows their users to make their
travel arrangements and book. E-bay allows its users to sell merchandise via online auctions. All these
are examples of-
a. Database marketing b. e-business
c. e-commerce d. (a) and (c )
e. Only ( c)
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236. NetTalk Live is a webcasting company that combines webcasts with live events on television or radio
which happens simultaneously. Viewers can watch programs on TV while using their web browser to
interact with the program. CNET Networks’ TV.com provides previews and cuts from movies and TV
shows as well as its own webcasts. A web casting then is –
a. Broadcasting using internet technologies b. Information on sports, weather, news etc
c. Signing up with a web caster d. A tool used by online marketers exclusively
e. All of the above
237. Amazon.com launched its associate program whereby Amazon associates could place banner or text
links on their site for individual books or link directly to Amazon home page. When visitors clicked
from the associate’s website to Amazon and purchased a book, the associate received a commission.
This model of business is called –
a. Banner ads b. Bulletin boards
c. Affiliate marketing d. Web casting
e. Web marketing
238. The Kentucky Fried chicken slogan “ Finger-lickin-good” in Chinese, came out as “ Eat your fingers
off”!. Considering this example, which challenge in online international marketing is highlighted in the
following options?
a. Order fulfilment, meeting the demand and smooth delivery of the product
b. Pre and post sales support
c. Communication and cultural barriers for online advertisement
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d. Payment preferences – mode and currency
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e. Quality control
239. The IRCTC online services is not only India’s but Asia’s largest e-commerce portal. It was launched in
2002, with just 27 tickets booked on the same day. While today it has millions of visitors per month.
The firm sells over 2 lakh tickets per day through its website. Though the commercial internet started 27
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years back, india could not leverage its benefits totally as it had its share of challenges from e-commerce
point of view. The challenges are –
a. Indian economy dominated by small businesses which often lacks sufficient infrastructure to
conduct business over internet
b. Lack of awareness and less exposure to latest technology
c. Lack of reliable delivery mechanism
d. (b) and (c)
e. (a), (b) and ( c)
240. When the online shopping e-commerce portal Yebhi.com needed to create a buzz for its new “ Try-n –
Buy” value proposition that enabled a customer to try the product before buying it, it took to Twitter.
After sharing this through a new TV commercial, a contest using the hashtag #TrynBuy was launched,
where Twitter users were invited to answer 21 questions relating to the TV commercials. It trended for
50 hours with a total reach of 3.37 million. Marketers and brands have found a perfect tool in social
media to build hype and generate buzz around their promotional activities. And the clear winners were
those who adopted unique, brand centric marketing tactics that had captivated the interests of their fans
and followers. Which of the following are the advantages of using social media for online marketing?
a. More mileage and visibility
b. One –on – one consumer connect
c. Continuously evolving with newer platforms emerging
d. (a)and (b)
e. (a), (b) and (c)
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241. Rolls Royce has ensured its aircraft engines are in high demand by continuously monitoring the health
of its 3000 engines for 45 airlines through live satellite feeds. Under its “ Total Care” program, the
airline pays for every hour an engine in flight, and Rolls Royce assumes the risks and costs of downtime
and repairs in turn. In order to stay ahead in competition, the strategy followed in the said example to
market its services are-
a. Service differentiation b. Image
c. delivery d. (b) and ( c)
e. (a) and (b)
242. When a client walks in to any of the Enrich chain of Spa and Salons, they are treated to upscale
ambience, trendy music, hospitality extended by the front desk, comfortable seating arrangements while
in wait, glossy magazines and their personnel offering you water, tea/coffee/juices from their in-house
pantry. Which among the 7 P’s of marketing of services is adopted in the said example-
a. Process b. physical evidence
c. People d. Product
e. Promotion
243. When you walk into Maharaja Bhog chain of restaurants to enjoy a thali meal you are greeted and
welcomed at the entrance and offered a seat. The staff is ever smiling and they bring a snouted pitcher
of cold rose water and a bowl to wash your hands. They serve you food in such a manner that your thali
is continuously replenished and they urge you to have more. As you are stepping out after a meal, the
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manager ensures to ask you how did you enjoy your meal. Which of the unique nature of services is
being referred to in this example?
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a. Intangibility b. Heterogeneity
c. Inseperability d. Perishability
e. Lack of ownership
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244. When a consumer walks into a store and purchases for e.g. LG air conditioner, along with the warranty
on parts and the first 3 services offered by the company during the warranty period, customers are also
offered an AMC, annual maintenance contract for extended period, say, 2 years, that is offered by the
authorised service centres which are tied up to LG, to cater to service and repairs of customers buying
LG air conditioners. This process is called-
a. Product support service management b. Managing productivity
c. Monitoring systems d. Employee management
e. (c) and (d)
245. Clients, upon enrolling in Bharat Thakur’s artistic yoga, are taught techniques in yoga to attain very
well-toned body, apart from the conventional meditation and breathing techniques. Which of the
following services suit the above example?
a. People processing b. Possession processing
c. Mental stimulus processing d. Information processing
e. (a) and (d)
246. XYZT is a firm launched to bring exclusive handmade products to the market. Upon launching, they
engaged the services of IMRB and Catlins PR agency to support their business by way of providing
research findings on potential markets, demographics etc and ads placed in newspapers and kiosks. This
example is classification of services based on end-user and the type here referred to is –
a. Consumer services b. Business to consumer services (B2C)
c. Industrial services d. Business to business services (B2B)
e. Consumer to consumer services (C2C)
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247. Recent newspaper article reflected couple of irate passengers of Spice Jet airlines suing the airline for
undue delay in take-off to New Delhi and the crew being rude to passengers. There have been more
incidents of such long delays in the flights take off affecting its passengers and no scope of redressal
system. Managing service qualities is the norm of the day which is dependent on several factors. Which
of the following aspects is being highlighted in the above mentioned example?
a. Strategic concept b. Top management involvement
c. Customer complaints d. Analysing competitors performance
e. People management
248. Mr Rao and family went on a family vacation to South Africa, the holiday package tailor made for him
by Cox and Kings, a leading travel operator known for its popular holidays to exotic location. They
went in the month of July and were able to spot the 5B’s in the wilderness as well as the great migration.
Having experienced these spectacular wildlife phenomenon’s, they referred this tour package to his
colleague Mr Das. Mr Das went ahead with the bookings and the family went on the same tour by the
same tour operator, in the month of January. However, Mr Das and family came back disappointed of
not having been able to see the 5B’s and having had a nasty experience with their tour guide, not to
mention the hot weather. Identify the unique nature of services that is being referred to from the
following options.
a. Inseparable b. Heterogeneity
c. Intangibility d. Lack of ownership
e. Perishability
249. Cleartrip.com is a website that allows the user to make his travel arrangements wherein he gets to have a
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preview of the ticket pricing on optional dates and its availability. Besides, the website offers a range of
ancillary services all pertaining to customers travel, that the user does not have to go physically to a
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travel house to book his travel arrangement. At the click of his mouse, sitting on his desk, he can
finalise, book and secure all of his travel arrangements. Services being perishable and inseparable
location and distribution play a crucial factor. Identify the category that suits the above example from
the following.
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a. Customer required to visit the service delivery provider

b. Service delivery provider visits the customer
c. Physical interaction between service provider and customer not required to deliver the service.
d. Customer required to visit at least once before the delivery of service
e. Service delivery provider required to visit the customer at least once
250. Managing productivity in service industry is dependent on quality and benchmarking with their
competitors, thereby improvising and upgrading their service standards to retain their customers.
Telecom providers Vodafone, Airtel, Idea etc are constantly benchmarking their service productivity
levels and striving towards quality in their services. The strategies involved to achieve these are –
a. Involving customers in the service delivery process
b. Utilising the employees skill sets better
c. Standardisation of the service delivery procedures
d. (a) (b) and ( c)
e. (b) and ( c)
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UNIT 26: MARKETING OF ORGANISATIONS,

INDIVIDUAL, PLACES AND IDEAS
251. Gujarat Cooperative Milk Marketing Federation Ltd, is India’s largest food products marketing
organisation with annual turnover (2013-2014) US$3 billion. Popularly known as AMUL, which aims
to provide remunerative returns to the farmers and also serve the interest of consumers by providing
quality products which are good and value for money. For its consistent adherence to quality, customer
focus and dependability, GCMMF has received numerous awards and accolades over the years. This is
an example of marketing of-
a. Organisation b. Persons
c. Place d. Ideas
e. Product
252. David Sheldrick Widlife Association is a volunteer, non-profit global organisation, aimed to rescue the
calves of poached elephants and provide a home and safe haven for African tuskers. Their presence in
the social media is profound with 1000s of volunteers, organisations etc associated with them towards
their work. Aid comes to them from across the globe through their campaigns especially in the social
media sites such as Facebook. There is a growing need to market non-profit organisations too for the
purpose of –
a. Attract patrons b. Gain popularity
c. Influence people to join as volunteers/ members d. Gain support globally
e. (a) ( c) and (d)
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253. Companies such as Godrej pest control HICARE, LG etc frequently call up their customers after their
products have been serviced and request their customers to answer their survey questions and feedback
to assess the level of satisfaction among customers about their products/services and post sales services.
Organisations lay emphasis on the image it has among its customers and this they do by –
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a. Image assessment b. Image planning

c. Image control d. (a) (b) and (c)
e. (a) and (b)
254. When we go to watch a movie in a multiplex these days, we get to see a short documentary film on
creating awareness and educating people on aids, about HINDI as national language and its rich history,
usage of gutka and cancer etc and so on and so forth. These are examples of –
a. Marketing of organisations b. Marketing of idea
c. Marketing of persons d. Marketing of place
e. Marketing of products
255. Prior to elections, the nation could see heavy campaigns, promotions and marketing of the candidates.
For e.g.- Modi Sarkar campaigns could be seen in prominent newspapers as ads and also as TV ads. The
marketing of important persons involves marketing tools and strategies to achieve –
a. Branding of that person
b. Image management to help the person have an advantage over opponents
c. Promoting the qualities and competencies of the person
d. (b) and ( c)
e. (a) (b) and ( c)
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256. Branding and marketing of tourists destinations has gained importance in the last decade. In a survey
commissioned by the Malaysian Tourism promotion board, Singapore was seen, by broad selection of
travellers and tourists agents as “clean , modern and safe”. China’s dominant image and attraction was
“culture” and Malaysia was seen as “multicultural with many beaches”. Thailand had a brand image of “
exotic, fun and friendly people”. Marketing of places is to achieve-
a. Attract more customers
b. Earn foreign revenue
c. To attract set up of infrastructure such as hotels, business centers, resorts etc
d. All of the above
e. (a) and ( c)
257. Chennai’s Tidal park ads calls for setting up software industries as well as for BPO’s and ITES
companies. Dubai shopping festival which commences in February every year, their ads woo hoards of
customers from across the globe, with the airlines and hotels in Dubai offering attractive packages at
that time. The above mentioned are examples of-
a. Image marketing b. Place marketing
c. New products marketing d. Price marketing
e. People marketing
258. Strategic branding of places is growing with nations, regions, cities and institutions, eg Amsterdam’s “
iamsterdams”, Las Vegas “ Sin City”, Abu Ghosh’s “ world capital of hummus”, Jerusalem’s “ Holy
city”, Paris’s “ illuminated city”, Silicon Valley as “ Tech capital”. These marketing exercise and
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branding of places are done because nations/ places compete with each other for-
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a. People b. Resources
c. Business d. (a), (b), ( c)
e. (a) and ( c)
259. The short documentary on “ Project Tiger” stating the current status of Indian tigers dwindling in
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numbers, in India as well as globally and all the campaigns to protect the tigers, PETA promoting vegan
foods and adoption of strays as well protecting animal rights can be seen in medias like Facebook and
events in public places, endorsed by celebrities. Marketing of ideas strive towards achieving –
a. Influence attitudes and behaviour of the masses b. Benefit target audience
c. Create awareness and solicit action d. (a), (b) and (c)
e. none of the above
260. Consider the recent travails of the Nissan Motors Company. In the 1980s it enjoyed the image of a
customer-oriented, trendsetting automobile manufacturer with an excellent reputation for automotive
engineering. By the mid-1990s, however, as a result of a series of poor decisions, its image as a cutting-
edge producer, along with sales and profits, had declined precipitously. It is now perceived by
customers as well as other stakeholders as a conservative maker of stodgy, boxy cars with its
engineering reputation compromised. Now after considerable R&D, in India, it has launched Go Datsun,
a hatchback car to compete in the small segment car , but yet to gain market share. Marketing of the
organisation brand or identity involves-
a. Corporate image/ brand assessment b. Corporate communication
c. Image planning and control d. (a) and (b)
e. (a) and ( c)
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UNIT 27: MARKETING MANAGEMENT- ETHICAL

AND SOCIAL DIMENSIONS
261. BHEL is actively involved in the Welfare of the surrounding communities is helping the organization to
earn good will of the local people BHEL is also providing drinking water facilities, construction of
roads and culverts, provision of health facilities, educational facilities. This is an example of-
a. Corporate social responsibility b. Philanthropic marketing
c. Consumer rights and protection d. Economic commitment
e. Legal commitment
262. As one of the largest and most global companies in the world, Coca – Cola took seriously its ability and
responsibility to positively affect the communities in which it operated. The company’s mission
statement, called the Coca-Cola Promise, stated: “The Coca-Cola company exists to benefit and refresh
everyone who is touched by our business.” The company has made efforts towards good citizenship in
the areas of community, by improving the quality of life in the communities in which they operate, and
the environment, by addressing water, climate change and waste management initiatives. Their activities
also included The Coca – Cola Africa Foundation created to combat the spread of HIV / AIDS through
partnership with governments, UNAIDS, and other NGOs, and The Coca – Cola Foundation, focused on
higher education as a vehicle to build strong communities and enhance individual opportunity . What
type of social commitment is Coca-cola adopting?
a. Philanthropic commitments b. Ethical commitments
c. Economic commitments d. legal commitments
e. Customer relationship commitments
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263. Sathyam computers scandal, referred to as Indian Enron scandal, being in information technology, the
company produced software’s headquartered in Hyderabad. Its chairman, Ramalinga Raju produced an
account sheet which has fraud amounting to crores. The chief auditors were also not able to identify this
adjustment. As a result of this scam, employees lost their job and the chairman was jailed for fraud.
Business ethics exists for the following-
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a. Business needs to function as responsible corporate citizens in the country

b. Business operates within the society
c. Functioning of business should contribute to the welfare of the society
d. (a), (b) and (c)
e. (b) and ( c)
264. Philips Lighting’s first shot at marketing a standalone compact fluorescent light (CFL) bulb was Earth
Light, at $15 each versus 75 cents for incandescent bulbs. The product had difficulty climbing out of its
deep green niche. The company re-launched the product as "Marathon," underscoring its new "super
long life" positioning and promise of saving $26 in energy costs over its five-year lifetime. Finally, with
the U.S. EPA’s Energy Star label to add credibility as well as new sensitivity to rising utility costs and
electricity shortages, sales climbed 12 per cent in an otherwise flat market. This is an example of-
a. Innovative marketing b. Green marketing
c. Ethical marketing d. Social marketing
e. Campaign marketing
265. The Colgate-Palmolive code of ethics is a long document, but is broken down into individual areas of
conduct. The code is intended as a guide to all daily business interactions and is used in conjunction
with the company’s business practice guidelines. The code covers 10 areas, including: Our Relationship
with Each Other; Our Relationship with the Company; Our Relationship with Consumers; Our
Relationship with Government and the Law; Our Relationship with Society and Our Relationship with
the Environment. A corporate code of conduct does face challenges that govern its practices. These
factors are-
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a. Heightened competition b. Workforce diversity

c. The code affecting the normal business activities d. (a) and (b)
e. (b) and ( c)
266. Japan’s three largest carmakers including Honda and Nissan, have recalled more than 5m vehicles this
month as scrutiny of potential safety flaws rises in the industry. Honda, Takata’s biggest customer, has
called back a total of 6m vehicles for problems with Takata air bags in nine recalls since 2008,
according to the business news site Bloomberg. The companies striving to be ethically socially
responsive take into consideration certain factors and in the example quoted above it is-
a. Individual customer b. Society
c. Other business d. (a) (b) ( c)
e. (b) and( c)
267. Johnson and Johnson’s Tylenol was the most successful over the counter painkiller drug in the United
States with over one hundred million users, yielding to 19% of J&J’s profits for a long time. During
1982, a malevolent sabotage of replacing it with cyanide laced capsules led to few deaths and outcry
nationwide. Immediately the top management of J&J recalled the whole of Tylenol from across the
nation and told via media to discontinue the use of the capsules until the issue was resolved. By doing
so, J&J showed that they were not willing to take a risk with public’s safety even if it cost the company
millions of dollars. The end result was the public viewing Tylenol as the unfortunate victim of a
malicious crime. Which of the following aspects were considered by the companies while being socially
responsive?
a. Society concern b. Economic concern
c. Competitors concern
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d. (a) and (b)
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e. (b) and (c)
268. Any business should be responsible towards the society and environment in which it operates.
Marketers have been performing a variety of tasks that help them in fulfilling their social
responsibilities. McDonald, in its menu, abstains from including beef in India, due to the fact that India
is a Hindu religion country. Companies neutrally respecting the region in which they operate and
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conduct business within the framework and regulatory environment set by the government.
Under which of the following factors does the above scenario fit into?
a. Maintenance task b. Economic and production task
c. Political task d. Financial task
e. Environmental task
269. Laws, rules, regulations and orders (for which India has unparalleled distinction in the Guinness book of
records) alone do not protect consumers, but it is the rights’ movement of people which produce results
in a democracy.
One of the greatest achievements of the Indian consumer movement is the enactment of the dynamic
consumer law: COPRA. Coming 39 years after Independence, it has acknowledged the rampant
consumer abuses, including those of the government owned public utilities like telephones, transport,
power etc. These utilities, in the first place, were created as state monopolies ostensibly to protect
consumers. Critics of COPRA rightly conclude that it can’t do anything about rising prices, but it has
succeeded in bringing about fair play in the supply of goods and services available in the market place,
giving substance to the adage: Customer is King. Also, COPRA has encouraged active consumer bodies
to demand, and perhaps see in the near future, independent Public Utility Regulatory Commissions to
debate costing, pricing and promote competition. The rights of consumers are-
a. Safety b. Choice
c. Information d. To be heard
e. All of the above
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270. The competition policy of India is aimed at fostering a healthy and active competitive marketing
environment in the country. The SVS Ragahavan committee was set up in the year 2000 to formulate a
new competition policy. The recommendations of this committee are-
a. Amendment of MRTP act
b. Amendment of Industrial disputes act
c. Abolition of the board for industrial finance restructuring
d. Setting up of a separate commission named competition commission of India to implement the
Indian competition act.
e. All the above
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271. Coca Cola, Denmark, is being asked to revise the marketing materials for its so-called Plant Bottle
packaging after the Danish consumer ombudsman found that it exaggerated the product’s environmental
benefits without offering proof. The ombudsman also noted a lack of documentation to support Coke’s
claim that Plant Bottle is “environmentally friendly” or has a “reduced carbon footprint.” Which of the
Coke’s marketing activities in Denmark is identified with one the following?
a. Green washing
b. Green marketing myopia
c. Eco labels
d. Green product
e. Green packaging
272. Tata Consultancy Services (TCS) has reduced its electricity consumption by about 15%, and has
76MWH of solar power, reduced water use (1.5 M cubic meter of water reuse), 28% reduction in paper
usage, 67% reduction in printer cartridge consumption, etc. TCS has also introduced sensor based light
turn on/off, building design for cooling efficiency, automatic cooling system modulation based on need
and load in their office buildings, etc. The efforts of TCS are directed towards______________.
a. Encourage Green washing
b. Green branding
c. Fall into green marketing myopia
d. Influence green consumer
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e. To price higher for its products/services
273. Match the following certification marks in India for green products.
A. FPO Mark1. A mandatory mark for all processed fruit products in India
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B. Agmark2. For all agricultural products

C. Ecomark3. An eco-label for various products issued by the Bureau of Indian Standards (BIS)
D. Organic mark4. Products conforms to the specifications of National Standards for Organic Products
a. A 1, B2, C3, D4
b. A2, B1, C3, D4
c. A3, B1, C2, D4
d. A4, B3, C4, D2
e. A2, B4, C1, D3
274. The Guardian and Cleantech Group, a research advisory service, released the Global Cleantech 100 list
in London and Boston recently. Jain Irrigation Systems, MNC based in Jalgoan, Maharashtra, is one of
the companies which found place on the list of 100 promising private clean technology companies in the
world. The company manufactures a number of products, including drip and sprinkler irrigation systems
and components, etc. The green marketing evolution of Jain Irrigation Systems falls into the following
stage.
a. Ecological green marketing
b. Sustainable green marketing
c. Substitutable green marketing
d. Structural green marketing
e. Environmental green marketing
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275. The sustainability framework incorporates three dimensions such as social, environmental and
economic. These three dimensions are called as ‘triple bottom line (TBL). The TBL takes into
consideration of ‘3Ps’ which are also known as the ‘three pillars of sustainability’. The ------- dimension
comes first among the ‘three pillars of sustainability or 3Ps’.
a. Planet
b. Profit
c. People
d. Product
e. Price
276. The four types of marketing practices are based on two-dimensions: Scope and Focus. The scope is
divided into ‘narrow market’ and ‘broad market’ and the focus is divided into ‘relationships’ and
‘commercial transactions’ to make the matrix into four cells. Identify the features of Sustainable
marketing in the matrix from the following options.
a. Focus on Relationships and Scope on Narrow market
b. Focus on Commercial transactions and Scope on Broad market
c. Focus on Relationships and Scope on Broad market
d. Focus on Commercial transactions and Scope on Narrow market
277. World-watch Institute reported that the LOHAS (Lifestyle of Health and Sustainability) market segment
was estimated at $300 billion, approximately 30% of the U.S. consumer market i.e. 41 million
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Americans were included within the LOHAS market segment. In Japan roughly 17 million adults or
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12% of the population are in LOHAS segment. LOHAS market segment consists of -------------type of
customers.
a. Responsible consumers
b. Irresponsible consumers
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c. Excessive consumption consumers

d. Conservative customer group
e. Customers who boycott products of responsible companies
278. A recent statement made by the railway minister D V Sadananda Gowda says that Indian Railways
plans to go for paper-less operation in issuing passenger tickets in the next five years. Although SMS
ticketing has become popular among the youth, it is not yet preferred by senior citizens who still prefer
waiting in queues. Indian Railways can segment ‘youth’ and ‘senior citizens’ into the following
categorization based on continuum scale of sustainable behavior, developed by DEFRA (Department of
Environmental, Food and Rural Affair, UK).
a. Youth as Positive Greens and Senior Citizens as Honestly Disengaged
b. Youth as Waste Watchers and Senior Citizens as Positive Greens
c. Senior Citizens as Honestly Disengaged and Youth as Stalled Starters
d. Youth as Honestly Disengaged and Senior Citizens as Concerned Consumers
e. Senior Citizens as Waste Watchers and Youth as Sideline Supports
279. Philips is transitioning from the traditional linear economy ‘take – make - dispose’ model to circular
economy model ‘maintain - reuse – remanufacture – recycle’. Philips CEO Frans van Houten said,
‘Designing products and services for a circular economy can also bring savings to a company. The first
impression people always have is that it adds to costs, but that’s not true. We find that it drives
breakthrough thinking and can generate superior margins’. Philips sells lighting as a service where
customers pay for the ‘light’ not the LED lamp such as streetlights in Singapore. Circular economy will
require a lot of players such as customers, suppliers, etc. to change simultaneously. The circular
economy model of Philips focuses on the following.
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a. Sustainable product
b. Sustainable price
c. Sustainable promotion
d. Sustainable place
e. All the above
280. The CEO of Starbucks, Howard Schultz, described the company’s efforts to engage with suppliers and
local communities where they operate, accelerate investments in sustainable farming and reach
Starbucks’ goal of ethically sourcing 100% of its coffee beans by 2015. Ethical sourcing
means___________________.
i. All coffee must meet Starbucks standards of high quality
ii. Environmental Leadership (evaluated by third-party verifiers)
iii. Responsible coffee growing practices
iv. Loan programs for coffee-growing communities
v. High price for premium coffee
a. i, ii, iii, v
b. i, ii, iv, v
c. i, iii, iv, v
d. i, ii, iii, iv
e. ii, iii, iv, v
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281. At online grocery store, Ocado, chief technology officer, Paul Clarke already uses both private cloud
and public cloud resources and sees great potential in hybrid cloud. The company’s technology
infrastructure needs to be able to respond to peaks and troughs in demand, he explains, with major
peaks, for example, in the run-ups to Christmas and Easter, and troughs during the summer months,
when customers are on holiday. “Our routing system, for example, might be a good candidate for
‘cloud-bursting’ – with the system running predominantly on in-house private-cloud resources most of
the time but then tapping into public-cloud resources during periods of peak demand,” he says. This use
of cloud Technology is an example of –
a. Big Data b. Marketing Intelligence
c. Competitive Intelligence d. Both b & c
e. Marketing Data
282. Advertising creatives have always known the power of memes, even if they didn’t always use the term.
For decades major marketers, with their command of the airwaves and commitment to repetition, were
often the ones to launch memes. Alka-Seltzer’s “I can’t believe I ate the whole thing” and the Wendy’s
tagline “Where’s the beef?” were picked up and repurposed from preschools to presidential debates.
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The splintering of media channels has made it hard to claim that kind of mindshare by brute force. Add
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the democratization of publishing and the premium people place on discovering the new, and you have a
situation where memes can start anywhere, take off like rockets, and fizzle out a week later. Whereas
advertisers once spawned memes, now the better strategy may be to surf them. So the creative in the
mode of the Wonderful Pistachios campaign, which is simple enough to cycle through executions, is
quick and cheap. The campaign started out conventionally, using celebrities, and was highly successful:
National TV spots in its first year yielded a 233% increase in sales, and double-digit gains have
followed in the years since. But now the ads include memes, such as YouTube’s infamous Honey
Badger. This kind of advertising is a part of –
a. Routine Advertising b. Advertising Analytics
c. Analytical Models d. Both a & b
e. Steps of advertising
283. Customer Relationship Management (CRM) systems have become a standard instrument in sales and
marketing. There are gaps in CRM however, particularly for operations that employ global, multi-
channel sales and marketing teams who need to collect and deliver diversified market intelligence from
disparate, incompatible sources. This problem is often solved by manually generated, easily corrupted
and often inaccurate spreadsheet-based market intelligence, which distracts sales staff from the
important job of making sales, and the time it takes to reach decision-makers further, devalues it. A
global organization needs dynamic, real time market intelligence delivered to its decision-makers in a
format that is ready for evaluation and prompt action. This system is called
a. Marketing Intelligence b. Competitive intelligence
c. Advertising Intelligence d. Both b& c
e. Big Data Analysis
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284. Royal Caribbean, a global cruise company was going through a low period few years back. The
company then decided to have a look at what the competing companies are a doing. On having a study
they found out that most of similar companies are sending mails to the customers. They had also gone
through the contents of the mail as well and what reactions the customers are giving on those mail. To
find out the reaction of the customers who were receiving competitors mail Royal Caribbean used the
Customer Intelligence technique of “Inbox Insight”. “Inbox Insight” records various of opinions of the
customers who receive emails from any company as –
 No of customers who read the mail.
 No of customer who read the mail and delete immediately.
 No of customers who delete the mail without reading it.
 No of mails being forwarded.
 No of mails being replied.
 No of mails to which actually converted into sales.

“Inbox Insight” benchmarked the performance of the mail which can be compared to success of various
emails. After analyzing around 2 million mails Royal Caribbean came to a decision on a set pattern of
mail which had optimum subject line, well designed message content and attractive offer plan. After
sending the mails the company realized that customer engagement went up to 65% so did the brand
engagement. The subscriber engagement went up by 24% and the revenue potential increased. The
process helped Royal Caribbean increase its sales and reach new heights of revenue and growth. Which
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of the following technologies of competitive intelligence is used by Royal Caribbean?
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a. Blue ocean technology b. Red Ocean Technology
c. White ocean technology d. Both a & b
e. Both a & c
285. A successful supplier of home products had made the leap from joint ownership in a long established
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company in a similar field to going it alone, and had reached the point where cracks were beginning to
develop in the previously sound profit stream. Two years into sole ownership, some of the tried and
tested marketing methods seemed to be failing to deliver, and nothing leapt out to suggest what was
going wrong. The product was good, possibly the best of its type available, yet the client’s perception
was that the competition ran a smarter, more successful operation, and that anything they produced in
the area of marketing and promotion should be slavishly copied. This approach was not producing the
results the client had anticipated, and sales were steadily declining. Identify the technology that
company should use.
a. Big data b. Marketing analytics
c. Competitive Intelligence d. Marketing Intelligence
e. All of above
286. Tipp24 AG, a platform for placing bets on European lotteries, and prediction. The company
uses KXEN software to analyze billions of transactions and hundreds of customer attributes, and to
develop predictive models that target customers and personalize marketing messages on the fly. That led
to a 90% decrease in the time it took to build predictive models.SAP is in the process of
acquiring KXEN. "That’s probably a great move by SAP to fill a predictive analytics gap they’ve long
had," Laney said. The company has actually used –
a. Big Data Analysis b. Analytical Models
c. Competitive Intelligence d. Both A& C
e. A combination of a , b and c
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287. Today’s world of media buying and selling is fast – paced, with competitive advantages accruing to
those who can make the correct decision in real time. Measurement, therefore, must follow suit. Real
time data create the opportunity for greater efficiency and improved campaign outcomes. Marketers and
their agency partners who are fleet of foot and able to quickly understand the extent to which their
campaigns are delivering as planned – and who can take corrective action as needed – are realizing
improved financial ROI due to the following?
a. One of the steps in Big Data b. Business Analytics
c. Advertising Analytics d. Marketing Analytics
e. Both b & d
288. Despite its market leadership in several product categories, a multinational food and beverage company
was acting as a “price follower”, making reactive changes based on fluctuations in commodity prices,
competitors’ price shifts, or pressure applied by its retailer partners. This approach inevitably led to a
chaotic pricing architecture across products that failed to unlock the value of the company’s broad
portfolio. The company turned to a leading market research company to help analyze its current pricing
capabilities, develop an overarching strategic pricing framework, and integrate technology and
processes to operationalize the framework across the enterprise. The first step was to develop a demand
model by conducting a regression analysis of all price increase and decrease in the marketplace from
either the company or its competitors in recent years. Demand was analyzed for each brand to determine
the consumers’ sensitivity to price shifts. These findings were then fed into an optimization model to
determine the right pricing actions for the company going forward, taking into account various scenarios
that could happen in the marketplace. What did the leading research company do?
a. They used the analytical model to define the crises
b. They used Big Data Analysis to define the crises
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c. They used competitive Intelligence to define the crises
d. Both a & c
289. Digital marketing via email, mobile, search engines and other Internet-connected electronic devices has
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become main stream. The quantity and immediacy of the data generated from these marketing channels
can provide insights to help marketer’s better target audiences, shape offers and marketing content, and
make rapid adjustments to marketing campaigns. Identify the type of concept from the options given.
a. The concept belongs to Big Data b. The concept belongs to Advertising Analytics
c. The concept belongs to Marketing Analytics d. The concept belongs to Competitive Analytics
e. The concept belongs to Business Analytics
290. With Depend, Kimberly-Clark worked to drive consumers to Depend.com where they could sign up for
samples without having to spend a lot of time researching products in-aisle. The company worked with
Webtrends’ Optimize team to improve a sample request page, creating a comfortable, easy-to-use
sample experience that would be quick and easy for consumers to fill out and submit. Kimberly-Clark
tested different combinations of text and graphic elements, such as headlines and ‘call to action’
buttons, for its ‘free sample’ sign-up form on Depend.com. They used this digital performance data to
determine the best performing web page content. They are actually using ____________________to
impress the clients.
a. Advertising Analytics b. Market Research
c. Advertising Research d. Business Analytics
e. Competitive Research
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MULTIPLE CHOICE – ANSWERS AND EXPLANATIONS
UNIT I: MARKETING: THE DEVELOPMENT OF A CONCEPT
1. (d) Marketing concept

In marketing concept, companies constantly need to change and modify their products, to satisfy the
varying needs and preferences of the customer.
2. (b) Production era
In production era, product features were not a priority, and the emphasis was on faster and efficient
production at low prices.
3. (e) Societal marketing orientation
Firms in societal marketing orientation, offers products to please customers and fulfill societal
objectives as well.
4. (a) Production to Sales to Marketing orientation
Narendra Mukharjee first focused on production, then shifted his focus to sales and later to satisfying
customer on individual tastes.
5. (c) Customization
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Providing customized products/services based on individual tastes is called customization.
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6. (b) Integrated marketing communication
Marketing communication is simultaneously broadcasted on all the media so it is necessary that no
message contradicts other messages hence integrated marketing communication is necessary.
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7. (b) Place
Distance education is provided to working executives because they are not able to attend classes which
are in the dimension of ‘availability’ at their reach. Distance education is within their reach hence is the
‘place’ element of marketing mix.
8. (d) Reengineering
Reengineering is restructuring of business processes and related systems to improve business
performance.
9. (b) Benchmarking
Benchmarking is the tool for companies to try and meet the levels of competence of the market leader.
10. (b) Outsourcing
Companies can outsource non-core activities that would enable them to give greater priority to relevant
areas. Companies go for outsourcing to reduce costs also.
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11. (c) Customers

Customer is considered as no.1 and the rest of the stakeholders such as shareholders, employees,
suppliers, etc. have to give primary importance to customers.
12. (e) All the above
SBI has all the components to become no.1 such as customer base, resources, efficient processes, and
organization culture.
13. (c) Enhance customer satisfaction
BMW India’s primary purpose is to enhance customer satisfaction. The rest are there to strengthen
customer satisfaction.
14. (b) Value chain analysis
Value chain evaluates the value each particular activity at GAP adds to its products or services.
15. (b) Value chain of Oil Industry
This is the value chain of Oil Industry, not about a single company.
16. (a) Customer retention is more profitable
Customer retention is much easier than getting new customer. Customer retention adds more profit to
the company.
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17. (e) Partnership marketing
Dell wanted to satisfy customers better than anybody else. In partnership marketing, companies work in
tune with the customers for providing better services and improving business performance.
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18. (a) Activity Based Costing

Activity Based Costing is a tool for finding out the profitable customers.
19. (a) Customers –clients –members of the company club – advocates
In relationship marketing, customers are converted into clients. Clients become club members and later
they advocate the brand to potential customers.
20. (d) Basic marketing
In basic marketing, after selling the product, the customer is not contacted again.
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UNIT 3: MARKETING ENVIRONMENT
21. (d) a and b. Industry-friendly policies of Gujarat government and lack of local community support in
West Bengal have influenced Tata Nano to move from West Bengal to Gujarat.
22. (b) Monopoly. In this structure, the supply and the price of a product are completely controlled by one
firm, and the product does not have any close substitutes.
23. (a) Demographic environment. Demography is the study of population in terms of age, income,
gender, density, etc.
24. (b) Intellectual Property Act. Intellectual Property Act protects the original ideas of individuals,
companies from copying by others.
25. (a) Non-government regulatory agency like ASCI. Advertising Standards Council of India (ASCI) is
a self-regulatory voluntary organization of the advertising industry.
26. (c) Recession. Customers are not willing to spend during this period due to uncertain economic future.
27. (a) Enhance buying power of customers . Credit provides more money to customers so that customers
enhance their buying power to purchase more goods.
28. (c) To enhance connectivity with customers. Social media Technology is used to connect with
customers 24X7 and understand the pulse of customers consistently.
29. (d) TRAI. Parliament Act to regulate telecommunications in Indiaby Telecom Regulatory Authority of
India (TRAI), an independent regulator of the telecommunications business in India.
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30. (a) Socio Cultural Forces. In India, lifestyles, values and beliefs of customers are changing towards
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denim fabric choice.
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31. (d) Marketing cost analysis. Marketing cost analysis is a strategy applied in marketing where the costs
connected with selling, storing, advertising and distributing of products to particular buyers, are
analyzed in order to determine their profitability.
32. (e) Customer profitability analysis Customer profitability analysis is an important tool to retain
profitable customers. It is carried out with the help of customer and operational data using analytical
techniques and software technology. Software technology such as Customer Information Systems (CIS),
contains database of behaviours and transactions of each customer. It is used to estimate customer
profitability.
33. (a) 22.66 billion
Gross margin = Sales minus cost of goods sold

Sales = $ 37.4 billion, Gross margin = 39.4%
39.4% = 100% – Cost of goods Sold %
Cost of goods = 100%-39.4% = 60.6%
Revenue or sales =100% = $37.4 billion
Cost of goods = 60.6 % = $22.66 billion
34. (e) 3,750,000 million. (11,250,000 minus 7,500,000 = 3,750,000)
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35. (a)Q1 2013 (22,500,000 million units sold)
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36. (a) Economies-of-scale
Economies-of-scale refers to decrease in the average cost with an increase in production numbers.
37. (d) The experience curve
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The time taken for producing goods decreases over time as the labor gains experience in producing that
product.
38. (a) 80% learning effect
Learning increases with the quantity of output so that the effort required to complete a task reduces as
one’s learning effect increases.
39. (c) Growth. In the growth phase more products are produced that helps in experience curve effect to
minimize the cost of production.
40. (d) b and c. Experience curve and efficiency of doctors together helped AECS to reach higher
productivity and scale.
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41. (a) Cultural factors: Religious centers are influenced by cultural practices hence 100 percent
vegetarian restaurants at Vaishnavodevi shrine and Golden Temple.
42. (c) Italy. Out of the four age groups, three age groups (16-24, 25-34 and 35-44) purchase more
Smartphones with increase in age except in the fourth age group 45-64.
43. (b) Disclaimant reference group: First generation entrepreneurs wanted to follow entrepreneurial
group but with a priority for their individual tastes.
44. (b) Celebrity is seen as a reference group: Fans follow their celebrities who are in a true sense
reference group
45. (d) Full nest III. During this stage, the family’s income continues to advance more. Wives return to
work, and even the children may be employed. They purchase new, more tasteful furniture, luxury
appliances boats and automobiles. They also do more travelling and spend more on dental bills and
magazines.
46. (d) Motivating customers who do not eat non-vegetarian food but eat eggs to purchase McEgg
Burger. The egg eaters without non-vegetarian as a group already exists hence McDonald’s wanted to
motivate them to make a purchase of McEgg Burger to consider them as eggeterians.
47. (e) Individual taste. Age as a factor is having no influence on the US and the European customers
hence the focus is on individual tastes and priorities. I
48. (d) Decider: Mother is the space manager in the house hence the decider of Table Mate.
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49. (c) Extensive problem solving behaviour. Since it is very expensive, a student goes for extensive
problem solving behavior.
50. (e) Post purchase behaviour. To satisfy the customers who have already purchased the product.
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UNIT 6: ORGANIZATIONAL MARKETS AND

ORGANIZATIONAL BUYING BEHAVIOR
51. (b) LTMRHL wanted to buy Metro trains first time as New task (New Task): This involves
purchasing a good for the first time.
52. (a) Inelastic demand. Change in the price has no effect on demand.
53. (e) b, c and d. Tata Johnson Controls, Tata Taco, Bosch and Kinetic Engineering are OEMs for Tata
Nano. Tata Nano assembles and produces the final car in the Tata Motors Company.
54. (e) To enhance transparency in government purchases
55. (d) Environmental factors. Indian government is yet open education sector for foreign universities
with a bill.
56. (c) Police officials Buyers. Buyers select the most suitable vendor for supplies. Sometimes, they are
involved in negotiations and setting standards for the product. In the case of high value items, they need
to prepare and present a list of potential vendors to the top management.
57. (b) Supply Management orientation. Supply management orientation refers to an organization’s effort
to improve its supply chain, right from the suppliers to the customer. Supply management orientation
enables the company to improve its value in the entire value chain.
58. (b) AAI has recognized a problem with Air travel of Surat people (Problem recognition) The first
step in the purchase process is the identification of the problem. AAI has identified 70% population
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residing in Surat who can afford to fly by air and need an airport.
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59. (e)Order Routine Specifications. Air Costa is already a customer of Embraer S.A. The company has
specified the quantity, delivery schedule, details of warranty and service contract.
60. (c) Searching for potential suppliers. The buyers start searching for potential suppliers through
bidding and other sources.
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UNIT 7: MARKETING RESEARCH, MKIS AND DEMAND FORECASTING
61. (d) (a), (b) and (c)Market research is a systematic gathering, recording and analyzing of data about
problems relating to the marketing of goods and services. Market research agencies analyse the market
situations for their clients.
62. (a)Exploratory. Research identifies the unsolved problems, the possible opportunities and threats for an
organization, studies it to arrive at a new solution.
63. (c)Questionnaires. Questionnaire is a market research tool to gather primary data wherein a set of
questions is posed to the customer to gather data, which are carefully worded and sequenced to achieve
the desired objectives.
64. (d)(a) and (b) Secondary data collection technique can be cheaper, less time consuming and readily
available data as compared to primary data.
65. (b)Sales Information System-Companies receive latest information about their products and customers
and take action in accordance.
66. (e) (a), (b) and (c)DSS helps in speed up problem solving process in an organization and automate
processes and also speeds up decision making.
67. (d) Target Market. Target markets represents that part of the market with buyers who have interest in
the product and have financial means to purchase it and required to have certain minimum qualifications
to consume the product and the company focuses its sales and promotional activities.
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68. (e)Test Marketing Method. The marketer tests the sales of the product in the market for few days to
estimate its future demand.
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69. (d) all of the above.
70. (a) Potential Markets. Potential market represents set of buyers who are interested in purchasing the
product of the company.
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71. (e)(a), (b) and (c) Segmentation is the basis for developed, targeted and effective marketing and which
caters to the needs of the target market in an effective and efficient manner.
72. (c) Individual Marketing. Individual marketing is where marketers target individual customers
separately through direct communication channels or salesmen. This is mostly used in B2B marketing
where more attention is required to market a product or services.
73. (c) Segment size is small and sellers can change premium pricing for the higher quality and
services. Niche is a small part of the market where customers have distinct needs and requires
specialized services and marketers charge a premium for the higher quality and services.
74. (b) Demographic. Demographic segmentation includes age, gender, occupation, income, nationality,
religion social class and family life cycle.
75. (a) Occasions. Buying on occasions wherein, customers need different products for different occasions.
76. (b) Geographic. Geographic segmentation enables a company to focus sales and marketing resources
that offer strong growth opportunities.
77. (a) Accessible. Accessibility to a segment has to be taken into consideration in reaching and catering to
customers wherein the media coverage and distribution facilities are accessible to the company.
78. (b) Full Market Coverage. Full market coverage, wherein the companies target the entire market
instead of concentrating on segments.
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79. (d) Segment by segment invasion plans strategy invades one segment after another so as to finally
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capture the super segment.
80. (d) (a), (b) and (c) Single segment concentration benefits marketer with high sales as the marketing
efforts are targeted to single segment and with improvisations to suit the changing tastes and preference
of his customers, he can stay successful in concentrated marketing.
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81. (e) (a), (b) and (c) Mission statement describes the company’s business and aims and highlights its core
market, its product or services which are unique to that core market.
82. (d) (a) and (c)Strategic business units is a profit centre and also an individual business unit with its own
mission statement and self sufficient in conducting business.
83. (a) Stars. Stars are those where the business units function in an emerging market that has huge
potential for growth. And they also enjoy huge market share that fetch huge revenues for the company.
84. (e) (a) and (b)Cash cows functions in a mature or shrinking market and has low potential for growth
and higher market share and calls for less investment but fetching huge revenues for the company.
85. (b) Increasing the sales and profits for existing products in existing markets as per second quadrant
in Ansoff matrix, penetration strategy.
86. (d) (a), (b) and (c) Diversification strategy is entering new markets with new products, adopted by
companies either to explore a promising new business or when the current market is saturated fetching
very low revenues and profits.
87. (b) Integrative Growth Strategy. Integrative growth strategy firms adopt forward, backward,
horizontal and vertical integration as growth strategies. In horizontal integration, companies expand
their businesses by acquiring other business.
88. (d)(a) and (b) Strategic alliances are partnerships that work together to achieve mutually beneficial
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objectives whereby the companies share resources, information, capabilities and risks to attain the same.
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89. (d) (a) and (b) Value delivery sequence are either focusing on product or customer. In customer focus,
the objective is to create vale delivery in every product that meets the customer requirement precisely.
90. (e) (a), (b) and (c)The mission statement of an organization in order to be effective should be feasible,
precise, clear and distinctive.
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91. (d) (a), (b) and (c) TQM is a continuous process to eliminate defects in products or services, reduction
of costs while improving production process through six sigma methodology and where training is
provided to all employees in the organization to improvise business process.
92. (b) Barriers to Entry. Barriers to entry. Certain industries and fields have large obstacles and
challenges that make it difficult to enter a given market.
93. (d) (a) and (b) Rivalry among firms is very high when there are a large number of players with almost
equal market shares and also when switching costs of customers are low.
94. (d) (a) and (b)Bargaining power of buyers is at the highest when there are few number of large buyers
and many suppliers wherein these buyers can purchase the inputs from several companies at a time
economically and also when they are in a position to integrate vertically when required.
95. (e) (a) and (c)The information so collected has to be by ethical means and legal and collected from
annual reports of the competitors.
96. (a) Market Follower, Market Challenger. Market follower as followed by Unilever over P&G and
market challenger as followed by Pepsi over Coca cola and Dell over IBM.
97. (c) Focus Strategy. Focus strategy companies focus on a few target markets which are distinct groups
with specialized needs.
98. (d) Brand Competition. Brand competition companies compete with companies offering products to
the same segments of market.
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99. (d) (a) and (b) By managing to keep cost of production lower than that of its competitors by managing
its resources efficiently and by keeping prices low and introducing new technology.
100. (e) All of the above. Substitute products can regulate the price a firm can charge from its customers.
The substitutes influence the level of competition in industry.
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UNIT 11: PRODUCT AND PRODUCT LINES
101. (b) iPhone 6 as Potential product and iPhone 6 Plus as Potential product. Potential products include
all the improvements that are possible under given technological, economic and competitive conditions.
102. (d) Generic product that avoids taxes and advertising expenses. Generic products do not come in
fancy packaging and are not branded to avoid taxes. They are also offered at a cheaper price because it
is sold through word-of-mouth so that advertising expenses can be avoided.
103. (e) Unsought product that is purchased in the face of uncertainty. Customers buy funeral plans out
of uncertainties that are unsought occasions hence are treated as unsought products.
104. (a) Accessory equipment. Products that help in production or office activities are known as accessories.
105. (c) Colgate has more depth and more consistency. Depth is the assortment of sizes, colors, and
variations offered in each product in the product line. Consistency refers to the closeness exhibited by
the product lines.
106. (c) Introducing products to expand product mix into related and unrelated areas. Wipro has been
introducing variety of products to expand product mix into related and unrelated areas.
107. (d) Positioning the product in hygiene space to reduce diarrheal deaths. Educating customers about
the practice of hand washing with soap to reduce diarrheal deaths. Lifebuoy is focusing on the health
and hygiene space.
108. (b) Line filling by introducing Grand i10. Hyundai wanted to serve different levels of customer
segments by identifying gaps among segments.
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109. (a) Rapid skimming to take out more money from customers. Companies price their products very
high and also promote the products at a higher level during rapid skimming strategy.
110. (b) Growth stage because Radio Mirchi is innovating consistently to attract more customers.
Radio Mirchi is adding innovative programs to increase customer base.
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UNIT 12: PRODUCT DIFFERENTIATION AND POSITIONING
111. (b) Designed with Fuzzy Logic Technology to give perfect wash. Customers want a perfect solution
in the form of perfect wash. All alternatives are also equally important but they are secondary compared
to the feature that solves customer problem.
112. (e) Increasing more show rooms and service centres across length and breadth of India. Hyundai
has to increase its show rooms and service centres to reach the remote customer on a priority basis to
compete Maruti Suzuki in India. The other alternatives follow later.
113. (d) People differentiation by being different in customer service. IBM CEO, Viginia Rometty,
advices employees that they must move faster and respond more quickly to delight customers by being
different in customer service.
114. (d) Channel differentiation to serve customers fast. Amazon India wanted to serve customers fast by
adopting a different channel to reach the customer in one day.
115. (c) Chateau Margaux wanted to create image differentiation for the brand Chateau Margaux
2009. Chateau Margaux wanted to create image by creating a bundle of image building activities such
as making limited edition, selling through Le Clos’ wine shop, oak case with gold lettering, pricing
high, first-class flight to France, dinner with MD, etc.
116. (c) Value medicine, quality-based medical processes and evidence-based ethical practice. The core
of Fortis Escorts Heart Institute (FEHI) is value medicine, quality-based medical processes and
evidence-based ethical practices that have evolved over 25 years period.
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117. (b) Tata name is a trustworthy brand in India. The ‘Indicash’ ATM is promoted with Tata brand
which has more reputation in India.
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118. (a)Positioning as cheapest car has diluted the brand value of Tata Nano. Customers consider
purchasing a four wheeler as a status symbol in India. The moment Tata Nano is positioned as cheap car
people started moving away from purchasing Tata Nano.
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119. (b) Confused positioning because Customers see Ponds brand as fragrance product for external
application hence could not attach Ponds label to the tooth paste. To consumers the brand Ponds
was nothing but fragrance product for external application where as toothpaste is for internal application
and taste. The mismatch between the attribute of toothpaste and the soap created disillusionment in the
mind of consumers.
120. (b)Positioning based on Inside –out strategy. In Inside-out strategy, companies position products
based on what is happening inside the organization rather than based on the thoughts of customers.
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121. (d) Improvement and revision of existing products. These include improved versions of the existing
products that offer improved performance.
122. (b) Totally new product to the world. Nike’s fitness-tracking wristband ‘FuelBand’ is totally new
product to the world.
123. (d) Product venture teams. Companies set up a special team to develop a new product for a specific
project or business or product.
124. (a) Product managers. A product manager describes the product for development, drafts a business
strategy for the product and also takes the responsibility for implementing the business strategy.
125. (d) Commercialization. In the commercialization stage, the product is launched in the market. Tata
Swatch is already experiencing competition from Eureka’s AquaSure and HUL’s Pureit.
126. (e) Commercialization. The product iOS 8.0.1 and iOS 8.0.2 version has been already introduced in the
market. In Gamma testing is carried out on a long-term basis where the customer uses the product
extensively at independent level. In test marketing, the product is introduced in certain selected regions
or cities.
127. (a) product testing. After developing the prototype, marketers test it for feasibility and functionality.
Product testing is useful in gathering first impressions about the product, customer experiences,
customer expectations, etc. I
128. (b) Test marketing. In test marketing, the product is introduced in certain selected regions or cities
such as Bhopal in Madhya Pradesh. Test marketing is the ultimate test for a new product as it enables
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the companies to analyze the customer acceptance level for the new product.
129. (d) a, b and c. Gillette employees or volunteers continuously generate, screen and evaluate razors for
sharpness of blade, smoothness of glide, and ease of handling. Their ideas and judgments are recorded
in a computer.
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130. (c) Product testing level to develop fuel-cell-driven vehicles. All automobile majors are interested in
developing fuel-cell-driven vehicles and are at product testing level i.e. developing the prototype.
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131. (d) Personality of Customers. BMW 7 Series 760 Li Security Edition conveys the personality of
important people like Prime Ministers, presidents, etc. Indian prime ministers have been using BMW 7
series to reflect the status of prime ministers/presidents.
132. (a) The potential for a larger volume of sales. Jeff Bezos wanted to have the largest sales online like
the largest river in the world, the Amazon River.
133. (b) Private brand. Koryo is a private label introduced by Future Group in 2006 in consumer electronics
category. It has also introduced another private label under ‘Sensei’ brand in consumer electronics
group. Future Group source products from Videocon and introduce them under the Koryo and Sensei
brand name. It sells through all Future Group retail formats.
134. (a) The brand positions Mahindra products and services as aspirational, supporting customers’
ambitions to ‘Rise’. Mahindra Group wanted to reposition ‘Mahindra & Mahindra’ into ‘Mahindra
Rise’ to make the brand more aspirational and raising customer ambitions very high.
135. (a) i, ii, iii, iv, v. According to David Aaker, brands have high equity because they have high awareness,
many loyal customers, a high reputation for perceived quality, brand associations, and proprietary brand
assets such as patents and trademarks.
136. (a) It sounds like an international name and the meaning personifies the Coke brand in China.
Coke created the four Chinese characters that, when combined, approximated the English sound of
"Coca-Cola. In Mandarin, Coca-Cola is pronounced ‘kekouke le’. Chinese customers put together the
first two Chinese characters in the logo to form an expression meaning “delicious” and combined the
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last two characters for “happiness.” The name Coca-Cola throughout China became recognized as
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“delicious happiness.”
137. (c) Brand rejuvenation strategy. Companies can revitalize brands which have been losing market
share over a period of time through a step-by-step process that involves discovery, innovation and
expression.
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138. (a) To promote Reliance brand through IPL team ‘Mumbai Indians’. Brand sponsorship links the
company’s name with a particular event, person or team to promote the brand.
139. (a) Multi-branding strategy. Multi-branding refers to introducing different brands in the same product
category to satisfy the various buying patterns of customers.
140. (e) Attractive Packaging strategy. Packaging can create a desired image for the product through
attributes like colour, type of container, label etc. Packaging has become a medium for branding along
with supporting protection, preservation and transportation.
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141. (b) Raising market share with promotional offers. Many companies set prices with a view to capture
a considerable market share. According to them, an increase in market share would lead to increase in
profits.
142. (d) Customer value competition, Customers who want customized washed jeans look for customer
value rather than price, product, place and promotion.
143. (c) Pricing includes R&D costs to improve the quality of product. Customers feel high priced
products mean high quality hence companies spend money on R&D.
144. (e) Market skimming price in order to recover product development costs as early as possible.
Marketers set high prices while launching new products into the market in order to recover their costs as
early as possible.
145. (b) Psychological pricing where customers feel that they are paying less. A study observed that
consumers are more inclined towards buying a product with a price that ends with an odd number, more
precisely 9.
146. (b) Taxed pricing where multiple layers of taxes like sales tax, value added tax (VAT) , cess, state-
specific charges (SSC) , local body tax (LBT) , entry tax and cess are different among various
metros in India. Though, the four metros are geographically scattered but the different pricing is based
on local tax structure rather than geographical pricing.
147. (b) Captive product pricing to capture the customer by keeping less price for Printer. The purpose
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is to attract the customer with lesser price for basic product and making the lost margin by making
cartridge price higher.
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148. (c) Optional feature pricing. Marketers set up a price for the basic product and additional charges need
to be paid for optional features.
149. (b) Promotional pricing. Vim wanted to attract customers towards its new anti-bacterial gel from the
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Dettol brand, an established brand in India for anti-bacterial features by offering introductory
promotional price.
150. (a) Product bundling pricing. Marketers offer a group of related products at an attractive price as a
bundle price.
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151. (b) One Level Channel. As the petrol/diesel reaches the final consumer through a single intermediary,
i.e. the petroleum dealers, it is an example of a one level channel.
152. (a) Possession. As this marketing initiative physically transferred goods from the producer to the final
consumer, this activity primarily did the role of ‘possession’ even though it has also helped in
‘information flow’ from the producer to the consumer.
153. (b) Exclusive distribution. As the product is available through one intermediary, it is an example of
exclusive distribution.
154. (a) TV model availability. The TV design/model etc. (here 121 cm Ultra HD LED TV) comes under
‘selection utility’ for a customer. All others are ‘service utilities’.
155. (c) Horizontal Marketing System. It is an example of horizontal marketing system because both are in
the FMCG space but sells more or less non-competing products as of today. So this can be an
arrangement that benefits both Aachi in terms of reach and Jyothi Laboratories Ltd. in terms of revenue.
156. (e) Technology. Technology wise the American companies may fare better when compared to Alibaba
but the reasons why still Chinese companies select Alibaba for their cloud and infrastructure
requirements is because of criteria like control, adaptive, economic and political reasons. So technology
is the answer.
157. (d) Breaking Bulk. Allocating is also known as ‘breaking bulk’
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158. (d) Quantity gaps. Quantity gaps arise as the manufacturers produce in large quantities and there is
need to break these large quantities into smaller quantities to fulfill the needs of individual customers.
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159. (c) Jointly. In the vertical marketing system (VMS) , the producers, wholesalers, and retailers jointly
perform marketing activities.
160. (e) Producer increasing margins and other incentives for the channel members. Usually channel
conflicts do not occur because of increased incentives. So option (e) is the answer.
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161. (e) Tax management. Even though the company provides all the services that are listed to its
customers, tax management does not come as a primary function under logistics.
162. (c) Stock mixing. The act of sorting out bigger shipments into smaller ones and vice versa is one of the
very important functions of warehousing and is known as stock mixing.
163. (a) Wholesaler. As the company sells FMCG products in bulk to intermediaries, the company can best
be referred to as a Wholesaler.
164. (e) Reducing cycle time. By delivering within a day, Flipkart reduces the cycle time; i.e. the time from
which the order is received from the customer, to when the product is delivered to the customer.
165. (d) Safety stock. Safety stock is that extra level of inventory held by an organization to meet
uncertainties like out-of-stock conditions, increased customer demand, delays in supplier deliveries, etc.
166. (d) Promotion. The activities undertaken by Soji comes under the category of promotion
167. (b) Transloading. When warehousing is used as a junction for transporting goods from one place to
another, it is also as ‘transloading.’
168. (e) Practicing just in time. Here the main output of the said integration software is Just in time.
169. (d) Order lead-time. Order lead-time is the period between the dates of an order placed and the date of
the raw materials available for production.
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170. (b) The branches are not required to sell goods to the buyers. In reality the branches have to sell
goods to the buyers.
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UNIT 18: RETAILING
171. (c) Franchising. Here Mathews was given permission to do business to sell Arya Vaidya Sala products
in the specified geography. So it best represents franchising.
172. (e) Specialty store. As the shop retails Ayurveda and related products, it is an example of specialty
store.
173. (a) Franchiser. In the said arrangement, Arya Vaidya Sala is the franchisor and Mathews is the
franchisee.
174. (d) Hypermarket. Hypermarkets are large super markets with a shop floor area of two to three lakh
square feet and carry a wide variety of household products.
175. (c) Owned good services retailing. Maintenance service provided by authorized service personnel
comes under ‘non-goods service retailing’. Here the service provider does not own the goods.
176. (c) Non-store based retailing. Automatic vending is a form of non-store based retailing
177. (a) Narrow and shallow strategy. In a narrow and shallow strategy, products are offered in a limited
number of categories with a limited range in them. Small retail outlets usually come in this category.
178. (c) Catalogue retailing. The model used by Readers Digest is catalogue retailing.
179. (e) More control when compared to doing business directly. In a franchising business, the franchiser
will have less control when compared to doing the same on his own.
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180. (a) Trade name franchising. In trade name franchising, the franchising arrangement allows the
franchisee to use the franchiser’s trade name or license for products manufactured at franchisee’s plant
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and has the freedom to sell the products produced under franchiser’s trade name in a predetermined
market area.
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181. (b) Non- personal channels
As newspapers were used as a medium to inform the customers, it is a non-personal channel.

182. (a) Advertising
The information that Big Bazaar wanted to tell the customers was published in the newspapers because
the company had paid for it. So this is an example of advertising.
183. (d) Medium of transmission
If we look at newspapers from the prism of components of communication, then it will come under the
category of medium of transmission.
184. (b) Competitive parity method
As the advertising spend is based on what its competitors spend, it is an example of competitive parity
method.
185. (a) Awareness
The main aim by Hero was to inform the customers about the change from Hero Honda Motors to Hero
Motor Corp. This primarily is to inform. So awareness is the answer.
186. (d) Emotional
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When Hike messenger highlights its Indianness, it is an instance of emotional appeal.
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187. (c) Pull strategy
The marketing communication activities directed at the consumer is a part of pull strategy.
188. (e) Noise
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Any distortion in communication in any stage is because of which the receiver may not receive the
intended message accurately is due to noise in the communication process.
189. (c) Sales Promotion
Sales promotion methods are usually used to increase short term sales.
190. (e) Meeting the customers directly
‘Meeting the customers directly’ is personal selling and all others mentioned in the list comes under
direct marketing. So (e) is the odd one.
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191. (a) Inform

Even though other roles might have been played by the ad, during a product launch it mainly does the
role of informing prospective customers about the availability of a new product in the market and its
uniqueness when compared to its competitors.
192. (c) Affordability method
Here the company spent money for promotion base on availability. So they have used affordability
method.
193. (b) Both meaningful and distinctive
The CEO wants the message to be relevant, meaningful and different. So ‘meaningful and distinctive’ is
the answer.
194. (d) Comparative advertising
As the company is trying to compare and highlight the benefits with its competitors, it is an example of
comparative advertising.
195. (b) Personal selling
As there is personal interaction between the buyer and the seller, it is an example of personal selling.
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196. (e) Helps to maintain the same levels of sales even after the end of the above said sales promotion
period
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Usually sales promotion activities are short term activities during which there will be an increase in
sales. But it is very difficult to maintain the same level of sales after the promotion period is over.
197. (b) Public relations
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Here the aim of Coca Cola is to create a positive image about the company in the minds of the consumer
and population at large. So the role played by such activities is public relations.
198. (c) Point-of-purchase displays
The sales displays in front of cash counters are known as point of purchase displays or point of sale
displays.
199. (a) Consumer sales promotion
The activities directed at the customers broadly come under the category of consumer sales promotion.
200. (b) Buying allowance
Temporary price reduction offered to the retailer for purchasing a specific quantity of the product is
known as buying allowance.
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201. (b) Inside order takers

Sales people who function from within the company and do not make field calls are called as inside
order takers.
202. (c) Support personnel
The people who renders after sales service is categorised under support personnel.
203. (b) Events
Here the sales person got the lead from the marriage event which is a social function. So here the answer
is event.
204. (d) Trade Directories
Here, trade directories come under published information

205. (c) Cold lead
As the prospect might default once the sale is over, he turns into a cold lead.
206. (e) Canned sales approach
As his sales presentation is based on memory and not necessarily tailored to customer requirements, it is
known as canned sales approach.
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207. (b) Relationship marketing
Here Samsung is trying to improve the long-term relationship with the customers. This is an example of
relationship marketing.
208. (a) Geographic territory
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Here ITC is allocating sales force based on different geographical areas. So this is an example of
geographic segmentation.
209. (a) Incremental productivity method
When the company is recruiting sales personnel as long as the sales generated by them exceed the cost
incurred on them, then it is an example of incremental productivity method.
210. (a) Straight commission compensation
For the services rendered, Uber deducts 100% amount from customer every single time and 80%
amount is reimbursed back to the driver’s account. So the earnings for Uber is the 20% commission.
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UNIT 22: DEVELOPING AND MANAGING MARKETING
211. (d) Reengineering. Reengineering is the process of redesigning existing processes of a company to
augment organizational performance. Reengineering helps in bringing changes to organizational
functioning, reducing the process cost and cycle time, and to improve service delivery.
212. (e) (a) , (b) and (c) The prevalent downside of BPO ( business process outsourcing) as it can be
witnessed in today’s times, most often are inferior services, not achieving the cost reduction,
noncompliance issues as the employees of BPO are not the direct employees of the company, as well as
security and legal issues.
213. (c) Collaborative Supply Chain Management. A collaborative supply chain mechanism where
suppliers are aligned to the business process can result in improved forecasting of manufacturing,
improve service levels of delivery and help in the resolution of manufacturing problems quickly.
214. (c) Globalising. Companies are developing global strategies to offer products across different countries
while also ensuring the development of products based on local tastes and preferences in the countries in
which they operate.
215. (d) Market Share Analysis. Market share analyses pinpoints the company’s performance and its
position in the market with reference to its competitors.
216. (b) Marketing Excellence Review, Marketing Audit. Marketing excellence review identifies the
strengths and weaknesses of their units and adopts the best practices in the industry while marketing
audit is a systematic evaluation of the marketing activities and strategies of a firm.
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217. (d) (a) and (b) It is imperative to align the company, its personnel and its processes towards customer
service across all levels in the firm to attain a customer centric strategy.
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218. (a) Geographical organisation. Arranging the marketing organisation based on the region or
geographic structure ensures aligning the sales force to target the micro market to national level.
219. (a) Modern Marketing Company. Modern marketing company stresses on the need for a
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companywide contribution to all of its marketing activities.

220. (a) Downsizing. Downsizing is a strategy used to reduce the size and scope of businesses in order to
improve its financial performance, usually by laying off employees or closing less-profitable divisions,
and flattening the hierarchical structure to get more customer centric.
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221. (d) (a) and (b) Procurement at source would be the economical way of operations for MNC’s and
thereby increasing the prospects of future growth.
222. (d) (a) , (b) and (c) Regional free trade zones are formed to help nations in a region to engage in free
trade within the region. The countries falling within a free trade region are known as member countries.
The members formulate preferential trade policies that regulate the trade between the member countries.
The agreement also formulates uniform trade policies for the rest of the world.
223. (a) Trade Barriers. Trade barriers are government induced restrictions on international trade.
224. (a) Renting or leasing an intangible asset like a patent or trademark for a fee or loyalty. Licensing
is a form of providing access to a patent or a trademark to some other company by charging a fee or
royalty. The licensee helps gain access to the manufacturing process or trade secrets of the licensor.
With this knowledge, the licensee operates manufactures the product/offers the service in the foreign
country. Licensing is also an easy way of entering new markets.
225. (a) Export Division. To meet the growing needs of an export business in the foreign market, companies
set up self-sufficient export divisions that run their export operations in the foreign market.
226. (d) (a) , (b) and (c) Promotional strategies include advertising, sales promotion, publicity, public
relations, direct marketing, and personal selling. Formulating promotional strategies for global
customers is a difficult task because of the cultural diversities that exist between various countries.
Therefore, multinational players should formulate their communication strategies keeping in mind the
local cultures. For instance, it was often observed that the true meaning of a communication message is
lost while translating it to a foreign language.
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227. (e) (a) , (b) and (c) The internal and external influences of business plays a major role in the pricing
strategies of MNC’c such as inflationary rates, foreign exchange rates, production and distribution costs,
marketing and promotional costs etc.
228. (e) All of the above. Place strategy plays a crucial role in global marketing, as distribution costs
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generally account for about 40 per cent of the total cost of a product. Therefore, companies must
develop sound distribution strategies. The distribution strategy is also dependent upon the type of the
product a company offers to its customers. There are two major types of distribution channels. They are
– domestic intermediaries and foreign intermediaries.
229. (e) (a) , (b) and (c) Standardisation helps achieve economies of scale, consistency and a global reach.
230. (a) Joint Venture. Joint venture company desiring to foray into a foreign market enters into a
partnership or ‘joint venture’ with a company existing in that country. The partner may be a majority or
a minority stakeholder in the newly formed joint venture. The partnership may take place between
companies belonging to the same industry or different industries.
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UNIT 24: DIRECT AND ONLINE MARKETING
231. (a) Catalogue Marketing - Customers receive catalogues from companies which provide information
about the products and/or services of the company. Customers are expected to respond by placing an
order on the telephone. Catalogue marketing adds to the shopping convenience of customers. It benefits
retailers as they save on storage space and the amount spent on store décor. As catalogue marketing is
suitable only for a limited range of products, marketers have to take some factors into consideration
before selling a product through a catalogue. The marketer should evaluate whether customers will buy
a certain product through a catalogue, whether the product is priced right, whether it can be depicted
well in the catalogue, whether it can be ordered through email, and whether it can be delivered to the
customer without any damage. Companies can also post their catalogues on websites for customers to
access easily.
232. (d) (a) and (b) Privacy and incessant unwarranted calls are risks associated with database marketing.
233. (d) Kiosks Marketing. Kiosks marketing Kiosk marketing refers to providing information related to
products and services to customers using kiosks or electronic touch screens. Kiosks can be set up in a
small area and can be operated at any time without supervision. Kiosks enable the customers to get
relevant information about the company and avail of services at a time convenient to them without their
having to wait for long hours. There are certain kiosks that can be used for transactions like distributing
tickets, coupons, etc. An example of kiosks is the Automated Teller Machines (ATMs) of banks.
234. (a) Web Communities. Web communities are groups of people sharing information online. Messages
posted by a member of the web community reaches all the members of the community and anyone can
reply to it. People with common interests like those belonging to the same college or working at the
same place who want to share common information are increasingly forming web communities.
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235. (b) e-business. The Internet is a powerful tool for communication and research, but it also provides
businesses with a means of connecting with consumers and generating income. Businesses that generate
revenue primarily using the Internet are sometimes called e-businesses. E-businesses can vary greatly in
terms of how they provide value to and earn income from consumers.
236. (e) All of the above. Web casting is a form of broadcasting which uses Internet technologies. Users can
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receive information to suit their requirements by signing up with a web caster. This helps the users to
save time spent on searching for the information. Online marketers use web casting to provide
information to target customers. Customers can continuously receive information related to sports,
weather, news, and other subjects of their interest.
237. (c) Affiliate Marketing. Affiliate marketing is an option which can be beneficial to online marketers. In
affiliate marketing, the company’s products are sold to customers through a third party site and a
commission is paid to that site when customers log on to the company’s site through it.
238. (c) Communication and cultural barriers. However, also, while adopting to online marketing to reach
globally, if the orders are not fulfilled, demands not met and discrepancy in smooth delivery of the
product, the image of the brand or company takes a beating. Also communication and cultural barriers
are a challenge that needs to be addressed for e businesses. For e.g. an enquiry from Taiwan on the toll
free no if not attended to due to lack of knowledge in Taiwanese is going to make an irate customer.
Also payment preferences pose a challenge wherein some countries like UK prefers to pay using credit
card whereas the French prefers cheque payments.
239. (e) (a) , (b) and (c) Primarily large number of small businesses with no infrastructure to support web
based business model, teamed with lack of awareness or exposure to latest technology and poor levels
of penetration of the concept in the country are challenges faced in India with respect to ecommerce
business. Also lack of reliable delivery mechanism and shipping options and also complex taxation
systems are dampeners for the growth of ecommerce in India.
240. (e) (a) , (b) and (c) More mileage giving more visibility for the online marketers, continuously evolving
with newer platforms to enter and reach and one to one consumer connect are the advantages of social
media when used by online marketers.
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241. (a) Service Differentiation. Due to the unique characteristics of services such as intangible,
heterogeneity, perishability, inseparability, it is very important to differentiate services offered to its
clients to survive in the competition.
242. (b) Physical Evidence. Physical evidence plays a crucial role in creating tangible elements to otherwise
intangible nature of services, to enhance the experience of the services for the consumers.
243. (c) Inseparability. People are the defining factor in the service delivery process as services are
inseparable from the people or person delivering the service.
244. (a) Product support service management. Today, the distinction between products and services is fast
disappearing as marketers are offering, support services along with the tangible product and a tangible
element along with the services. This is done with a view to distinguish their offering from that of the
competitors. There are also certain products which require support services post product sale.
245. (c) Mental Stimulus Processing. In this type of service, the attention of the customer must be directed
at the service to experience it. For instance, trainers teaching meditation to customers are required to
direct their service to the mind of the customer.
246. (d) Business to business services (B2B) Services engaged or purchased by another business house to
experience the service provided by the service provider for the company’s advancement.
247. (c) Customer Complaints. Managing the service qualities is an on-going exercise to maintain
competency and consistency to stay ahead of competition and retain customers which calls for an
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integrated approach by the organisation to render quality in their services offered.
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248. (b) Heterogeneity. Heterogeneity- services, being dependent on people who delivers the service have
the unique nature of non-homogeneity and therefore the same service, each time it is offered gives a
different experience due to various influence or external factors such as the people, weather etc, in the
example mentioned.
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249. (c) Physical interaction between service provider and customer not required to deliver the service.
Physical interaction between service provider and customer not required to provide the service, medium
such as internet is used for the service provider to render the service and customer experiences the
service he chooses without having interface with the service provider but the internet aids as a medium
for him to experience the same.
250. (d) (a) , (b) and (c) An integrated, committed and holistic approach when adopted by the organisation
to deliver services ensures productivity and quality in the services.
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UNIT 26: MARKETING OF ORGANISATIONS,

INDIVIDUAL, PLACES AND IDEAS
251. (a) Organization. Marketing of organisations plays a pivotal role in building the image of that
organisation among consumers and a constant assessment of the same is called for and improvisation to
retain a hold in the markets.
252. (e) (a) , (c) and (d) Non-profit organisations too need marketing to gain an image in the mind of
customers and to solicit charity funds, patrons, and volunteers from large mass of people across the
globe.
253. (d) (a) , (b) and (c) Marketing of organisations so as to assess and retain its image among consumers is
accomplished by image assessment, image planning and control.
254. (b) Marketing of Idea. Marketing of ideas is gaining profound importance to create awareness and
reach masses to educate them on aspects pertaining to social welfare and causes.
255. (e) (a) , (b) and (c) Person marketing and image management are important in the building the brand or
image of the person and help them gain an advantage over opponents.
256. (d) All of the above- marketing of places, tourist destination or cities, promote the importance of the
place and attract more and more people as well as investments such as infrastructure development and
foreign revenue inflows.
257. (b) Place marketing- helps influence the attitude of people about a particular place or destination to
attract more people to it and earn foreign revenues.
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258. (d) All of the above- place marketing and branding of places/cities are done increasingly by nations as
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they are competing for people, resources and business for their sustenance and inflow of foreign
revenues.
259. (d) All of the above. Marketing of ideas is aimed to reach larger masses and create awareness among
them and elicit actions towards a cause.
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260. (e) a and c. In order to ascertain the image of the corporate among the customers, markets and
stakeholders and to achieve to maintain their identity, its important to do image assessment, planning
and control regularly.
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UNIT 27: MARKETING MANAGEMENT- ETHICAL

AND SOCIAL DIMENSIONS
261. (a) Corporate social responsibility refers to voluntary initiatives taken by companies to contribute
towards the betterment of society, conservation of environment etc.
262. (a) Philanthropic commitments- wherein organisations strive towards being socially responsible and
engage in philanthropy to give to the society.
263. (d) All of the above. Business is a part of the subsystem of the society. Every business exists more on
ethical mean or in total regard to its social concern to survive long term.
264. (b) Green marketing- firms focusing on producing environment friendly products, with a concern and
responsibility towards environment.
265. (d) (a) and (b) Workforce diversity and heightened competition along with other marketing
complexities pose a hindrance in devising effective code of conduct among organisations.
266. (a) Individual customer- customers want to purchase products from companies which are socially
responsive and do wish to be aggrieved or affected by faulty products and should they experience
injustice they are quick to voice their opinion.
267. (a) Society Concern- companies strive towards being socially responsive by way of doing business that
doesn’t harm society in general or environment.
268. (c) Political Tasks. Regulatory environment set by the government comes under political task.
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269. (e) All the above. All of right to safety, choice, information and to be heard was proposed by Kennedy
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as consumer rights for his nation.
270. (e) All of the above.
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271. (a) Greenwashing. Greenwashing is a term given to marketing activity that deceptively touts a product
as environmentally friendly despite offering limited or no environmental benefits.
272. (b) Green branding. A green company acts and claims to act in a way which minimizes damage to the
environment. Green brands are becoming increasingly eco-conscious and concerned with reducing the
size of their carbon footprint.
273. (a) A 1, B2, C3, D4. The following certification marks in India are given for green products.
 FPO Mark: A mandatory mark for all processed fruit products in India
 Agmark: For all agricultural products
 Ecomark: An eco-label for various products issued by the Bureau of Indian Standards (BIS)
 Organic mark: Products conforms to the specifications of National Standards for Organic Products
 Non Polluting Vehicle mark: Certifying conformity of motor vehicles to the Bharat
Stage emission standards
274. (e) Environmental green marketing. The second stage of the evolution of green marketing is
environmental green marketing. Environmental green marketing focuses on clean technology that
involves designing of innovative new products to take care of pollution and waste issues.
275. (c) People. The TBL takes into consideration of 3Ps: People, Planet and Profit are known as the ‘three
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pillars of sustainability. The people dimension comes first among the ‘three pillars of sustainability’.
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276. (c) Focus on Relationships and Scope on Broad market. Sustainable marketing dimensions are:
Focus on Relationships and Scope on Broad market. Sustainable marketing transcends the other three
marketing approaches such as Modern marketing, Relationship marketing and Green marketing and
leads to sustainable development of all dimensions in a holistic manner.
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277. (a) Responsible consumers. Responsible consumer refers to the role that consumers play in helping
society to be more sustainable. Such consumers act as concerned citizens through a variety of activities
such as curbing excessive consumption, supporting socially responsible companies by purchasing their
products and conversely boycotting products of companies that exhibit irresponsible behavior.
278. (a) Youth as Positive Greens and Senior Citizens as Honestly Disengaged. Positive Greens display
the behavior like ‘I think it’s important that I do think as much as I can to limit my impact on the
environment’. Honestly Disengaged display the behavior like ‘May be there’ll be an environmental
disaster, maybe not. Makes no difference to me, I’m just living life the way I want to’.
279. (e) All the above. Circular economy ensures sustainability of marketing mix such as sustainable
product, sustainable price, sustainable promotion and sustainable place. Circular economy is a
sustainable thinking in itself where strategic vision and mission transforms the total company into
sustainability.
280. (d) i, ii, iii, iv. Ethical sourcing includes the following factors.
i. All coffee must meet Starbucks standards of high quality.

ii. Environmental Leadership (evaluated by third-party verifiers)
iii. Responsible coffee growing practices
iv. Loan programs for coffee-growing communities
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281. (a) - Big Data. With growing market demand, one campaign cannot satisfy various needs of all the
customers so we need to have various campaigns to meet the variety of demands of the customers .This
is done with the help of Bog Data.
282. (b) Advertising Analytics. The term Advertising Meme was started by Richard Dawkins in 1976 which
meant representation of styles, concepts and behavior of a culture which is spread out to other cultures
from the point of origin .it is a part of advertising Analytics.
283. (b) competitive intelligence. Competitive intelligence is a method of keeping an eye on the products
and services of the competitor, their strategies and the method of implementing them, their
advertisement and their promotional tools.
284. (a) Blue ocean technology. Blue ocean technology focuses on - concentrates on alternatives they can
use in the market than on the competitors and concentrate on fresh customers rather than targeting their
competitors’ target set of customers.
285. (a) Big Data. Big data refers to the ever-increasing size, source, speed and skepticism of data. For many
organizations, big data is the basic sequence of the new business landscape which is an essential part of
data world in which we live in.
286. (c) Competitive Intelligence. Competitive Intelligence means understanding what is happening in the
marketing environment and learning from the competitor’s strategies and policies and designing your
own strategies to lead the market.
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287. (c) Advertising Analytics. Advertising Analytics focuses on taking advantage from the limitless data
available with the companies, cloud computing and next generation analytics methods. This confluence
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allows the companies to make more predictive decisions and move beyond the traditional methods of
advertising like marketing mix, digital attribution etc.
288. (a) They used Analytical model to define the crises. Analytical models are those mathematical models
that have a closed form of solution, i.e. the solution to the equations used to describe changes in a
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system can also be expressed as a mathematical analytic function.

289. (a) The concept belongs to Big Data. Big Data Refers to a pool of activities that are used for marketing
activities.
290. (a) Advertising Analytics. Advertising Analytics uses - Geographical Audience Segmentation
Analysis, Consumer Insights of Purchasing and Lifestyle Activity, Viewership/Media Consumption
Metrics (TV, Online & Social) Advertiser, Competitive Media Spend Analysis and Customized Vertical
Category Analysis to impress the clients.
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The ICFAI Group
ICFAI was established in
1984 as a not-for-profit ICFAI practices the value of academic integrity at all
society with the broad levels.
objective of empowering
The ICFAI Group's culture of teaching and learning
citizens through world class
supports and fosters intellectual and personality
quality education. Since its
development among its graduating students. They carry
establishment, ICFAI Group
an attitude of ownership of their work. ICFAI Group strives
has made a significant mark
to make the students - DOERS. ICFAI Group system,
in the Indian educational
strongly believes in developing an 'entrepreneurial
field with a pan Indian
network and presence.
Subsequently, there was a
big leap when ICFAI Group
started its chain of business
schools (IBS) across India in
1995 to offer management
program. Since its
inception, IBS has been
consistently ranked among
the top ranked B-Schools of
India providing excellent
academic delivery and
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infrastructure to its students
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and transforming them into
leaders for the future.
ICFAI Group has 3 Strategic
Institutional Units, the ICFAI
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Universities, the ICFAI

Business Schools and the Flexible Learning Programs
(Distance Mode). In all the programs offered across these
units, the emphasis is on adherence to academic rigor mindset' among its
and differentiated curriculum that bridges the industry graduating students.
–academia gap.
The alumni of ICFAI
Flexible and tech enabled learning also plays an Group are working in
important role in ICFAI's teaching methodology. The renowned companies
delivery takes place with the use of hi-tech learning world-wide. Collectively,
management system at campus programs and content ICFAI Group alumni
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Awards won by ICFAI Group

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The learning outcomes expected are:

2. Application based approach which enhances absorption and retention significantly.

The Workbook format is also used for Assessment.

UNIT 2: DELIVERING CUSTOMER VALUES AND SATISFACTION

Business Components: Stakeholders, Processes, Resources, Organization - Customer Satisfaction- Concept

UNIT 3: MARKETING ENVIRONMENT I

UNIT 4: MARKETING BUDGETS AND COSTS

UNIT 5: UNDERSTANDING CONSUMER BUYING BEHAVIOR

UNIT 7: MARKETING RESEARCH, MKIS, AND DEMAND FORECASTING

UNIT 8: MARKET SEGMENTATION AND MARKET TARGETING

UNIT 9: STRATEGIC PLANNING PROCESS IN MARKETING

UNIT 10: MARKETING AND COMPETITIVE STRATEGIES

UNIT 11: PRODUCT AND PRODUCT PORTFOLIO

UNIT 12: PRODUCT DIFFERENTIATIONS AND POSITIONING

UNIT 13: NEW PRODUCT DEVELOPMENT

UNIT 15: PRICING AND MARKETING

UNIT 17: LOGISTICS AND WHOLESALING

UNIT 19: COMMUNICATION MIX IN MARKETING

UNIT 20: ADVERTISING, SALES PROMOTION AND PUBLIC RELATIONS

UNIT 21: PERSONAL SELLING AND SALES FORCE MANAGEMENT

UNIT 22: DEVELOPING AND MANAGING HOLISTIC MARKETING ORGANIZATION

Trends in Business Environment: Reengineering, Outsourcing, Benchmarking, Collaborating with Suppliers,

UNIT 23: GLOBAL MARKETING STRATEGIES

UNIT 24: DIRECT AND DIGITAL MARKETING

UNIT 25: MARKETING OF SERVICES

UNIT 26: MARKETING OF ORGANIZATIONS, INDIVIDUALS, PLACES AND IDEAS

UNIT 28: GREEN AND SUSTAINABLE MARKETING

19. Unit 19: Communication Mix in Marketing 42

54. Unit 25: Marketing of Services 91

UNIT 1: MARKETING: THE DEVELOPMENT OF A CONCEPT

e. Societal marketing orientation

a. Customization of marketing communication b. Integrated marketing communication

UNIT 2: DELIVERING CUSTOMER VALUES AND SATISFACTION

a. Customer retention is more profitable b. Attracting new customers is easy

d. Advocates - customers –clients –members of the company club

UNIT 3: MARKETING ENVIRONMENT

UNIT 4: MARKETING BUDGETS AND COSTS

e. The technology adoption curve

a. Product development b. Introduction

UNIT 5: UNDERSTANDING CONSUMER BUYING BEHAVIOR

S. No Country Smartphone Penetration by Age in %

a. To minimize promotional expenses b. Celebrity is seen as a reference group

UNIT 6: ORGANIZATIONAL MARKETS AND

a. Organizational factors b. Social factors

b. AAI has recognized a problem with Air travel of Surat people

UNIT 7: MARKETING RESEARCH, MKIS AND DEMAND FORECASTING

e. One to one interviews

a. Speed up problem solving in an organization b. Helping automate managerial processes

UNIT 8: MARKET SEGMENTATION AND MARKET TARGETING

marketing is an example of ___________ strategy.

UNIT 9: STRATEGIC PLANNING PROCESS IN MARKETING

c. Question marks d. Dogs

e. (b) and (c)

UNIT 10: MARKETING AND COMPETITIVE STRATEGIES

a. When switching costs for customers are low.

UNIT 11: PRODUCT AND PRODUCT LINES

e. Augumented product because Crocin offers more incentives to doctors

 Colgate dental cream  Colgate Herbal