Interview Questions

1. What is market research according to you? Market research consists of testing the market to determine the acceptance of a particular product or service, especially amongst different demographics. It is used to establish which portion of the population will or does purchase a product, based on age, gender, location, income level and many other variables. Market research allows companies to learn more about past, current and potential customers, including their specific likes and dislikes.

2. What is the difference between sales and marketing? As we all know sales is a part of marketing. Selling is one activity of the entire marketing process. Selling is the act of persuading or influencing a customer to buy a product or service. The sales process consists of interpersonal interaction. It is often done by a one-on-one meeting, cold calls, and networking. It's anything that engages you with the prospect or customer on a personal level rather than at a distance Marketing activities support sales efforts. Actually, they are usually the most significant force in stimulating sales. Oftentimes, marketing activities (like the production of marketing materials and catchy packaging) must occur before a sale can be made; they sometimes follow the sale as well, to pave the way for future sales and referrals. Your marketing will consists of the measures you use to reach and persuade your prospects that you are the company for them. It's the message that prepares the prospect for the sales. It consists of advertising, public relations, brand marketing, viral marketing, and direct mail.

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3. Explain the term customer loyalty. The term customer loyalty is used to describe the behavior of repeat customers, as well as those that offer good ratings, reviews, or testimonials. Some customers do a particular company a great service by offering favorable word of mouth publicity regarding a product, telling friends and family, thus adding them to the number of loyal customers. However, customer loyalty includes much more. It is a process, a program, or a group of programs geared toward keeping a client happy so he or she will provide more business.

4. What is the difference between Customer Satisfaction and Delight We should start with the definitions of satisfaction and delight. According to the dictionary, satisfaction is defined as, the contentment one feels when one has fulfilled a desire, need, or expectation. Delight is, to take great pleasure or joy. These two simple words have a slightly different meaning, but all have a significant impact on the attitudes and behaviors of customers. Customer satisfaction mean providing service to the customers expectation Customer delight mean providing service more than an customers expectation. Delighted customers become loyal customers while customers who are merely satisfied are easily distracted by a seemingly better offer from your competitor.

5. What is Target Market? A Target Market is a specific group of potential customers which you have identified who have needs or problems which your products or services can fulfill.
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Target market is also a specific group of consumers at which a company aims its products and services.

6. What is break-even point?

When contribution i.e. sales minus variable cost, is exactly equal to fixed cost that point is called break even point BEP = fixed cost / contribution per unit.

7. Distinguish between NPV and IRR.

NPV is the difference between present value of investment and present value of future benefits whereas IRR is a point when NPV becomes zero. A positive NPV is a signal to accept the project and a negative NPV is a signal to reject the project. Zero NPV also means to accept the project. IRR is the rate that equates the investment outlays with the present value of cash inflow received, after one period.

8. What is a Derivative? A security whose price is dependent upon or derived from one or more underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. Most derivatives are characterized by high leverage. Futures contracts, forward contracts, options and swaps are the most common types of derivatives. Derivatives are contracts and can be used as an underlying asset. There
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are even derivatives based on weather data, such as the amount of rain or the number of sunny days in a particular region. Derivatives are generally used as an instrument to hedge risk, but can also be used for speculative purpose.

9. Explain Fundamental analysis. A method of evaluating a security that entails attempting to measure its intrinsic value by examining related economic, financial and other qualitative and quantitative factors. Fundamental analysts attempt to study everything that can affect the security's value, including macroeconomic factors (like the overall economy and industry conditions) and company-specific factors (like financial condition and management). The end goal of performing fundamental analysis is to produce a value that an investor can compare with the security's current price, with the aim of figuring out what sort of position to take with that security (underpriced = buy, overpriced = sell or short).

10. What are Basel norms? Basel norms are international standard for banking regulators to control how much capital banks need to put aside to guard against the types of financial and operational risks banks (and the whole economy) face. One focus was to maintain sufficient consistency of regulations so that this does not become a source of competitive inequality amongst internationally active banks.

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