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InterviewSolution
This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Explain the factors determine choice of channels of distribution. |
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Answer» One of the important decisions of marketing involves the choice regarding which channel of distribution to opt for. The following factors determine the choice of channels: `i)` Product Type:The choice of channel of distribution is based on the type of the product that is produced. It is important to check whether the product is perishable or non-perishable, whether it is an industrial or a consumer product, whether its unit value is high or low and also, the degree of complexity of the product. For instance, if a good is perishable then short channels should be used rather than the long ones. Similarly, if a product has a low unit value then longer channel are preferred. In a similar manner, consumer products are distributed through long channels while industrial products are distributed through short channels. `ii)` Characteristics of the Company: The two important characteristics of a company that affect the choice of channel are its financial strength and the degree of control that the company wishes to hold on the intermediaries. Shorter channels require greater funds than longer channels and also offer greater control over the members of the channel (intermediaries). Thus, companies that are financially strong or wish to command greater control over the channel of distribution opt for shorter channels of distribution. `iii)` Competitive Factors:The degree of competition and the channels opted by other competitors affect the choice of distribution channel. Depending on its policies a company can adopt a similar channel as adopted by its competitors or opt for a different channel. For example, if competitors of a company opt for sale through retail store, it may also do the same or it can opt a different channel such as direct selling. `iv)` Environmental Factors:Environmental factors such as economic constraints and legal policies play an important role in the choice of channel of distribution. For example, requirement of complex legal formalities at each step of distribution induces the companies to opt for shorter channels. `v)` Market Factors:Various other factors such as size of the market, geographical concentration of buyers, quantity demanded, etc. also affect the choice between the channels. For instance, if potential buyers are concentrated in a small geographical area then, shorter channels are used. As against this, if the buyers are dispersed in a larger area then longer channels of distribution may be used. |
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| 2. |
Why is marketing called a social process ? |
| Answer» Marketing is a social process, because people interact with others in order to persuade them to act in a particular way, say to purchase a product or a service, rather than forcing them to do so. | |
| 3. |
What factors would you keep in mind while deciding upon the channels of distribution for your product ? |
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Answer» Choice of appropriate channel of distribution is a very important marketing decision, which affects theperformance of an organisation. Important factors affecting the choice of channels of distribution by themanufacturer are: 1) Product Related Factors: The choice of channels of distribution depends upon the factors related to theproduct. Products can be perishable or nonperishable, industrial or consumer product, depends upon thevalue of product and the degree of complexity of the product. Industrial products require short channels,where Consumer products can be better distributed by long network of channels. Perishable products likefruits, vegetables, and dairy products are best sold through short channels, while non-perishable products liketoiletry and fabrics require longer channels to reach wide spread consumers. If the unit value of a product islow, long channels are preferred while in case of high value products, shorter channels may be used. In caseof complex products, short channels are preferred but if the product is a non-complex one, it is sold throughlong channels. 2) Characteristics of company: The important company characteristics affecting the choice of channels ofdistribution include the financial strength of the company and the degree of control it wants to hold. Directselling involves lot of funds to be invested, whereas Indirect selling through intermediary does not need hugefunds to be invested. Thus, if the firm has plenty of funds it may go for direct distribution otherwise, indirectchannels. Similarly if the management wants to have greater control on the channel members, short channelsare used otherwise, it can go in for longer channel. 3) Competitive Factors: The choice of channel is also affected by the channel selected by competitors. Thedecision on choice of channel of distribution is made depending upon the policy of the firm, whether it wantsto go with the competitors or be different from them. 4) Market Factors: Market factors like size of market, population of potential buyers and quantity purchaseddetermines choice of distribution channel. If number of buyers is small, short channels are used otherwiselonger are used. If the buyers are concentrated in a small place, short channels may be used, otherwise alonger channels. Similarly if the size of order is small large number of intermediaries may be used. |
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| 4. |
Which function of channels of distribution refers to the process of creating desired combinations of products of fulfil varied needs of customers such as circket kit ?A. SortingB. AccumulationC. AllocationD. Assorting |
| Answer» Assorting refers to the process of combining various goods of the same line of product, for sale to customers. | |
| 5. |
Does packaging act as a silent salesman ? |
| Answer» Yes, because the customers asses quality and features of a product from its packaging. It also provide detailed information about the product by acting as a label in certain products. | |
| 6. |
How can one product be distinguished from another ? |
| Answer» On the basis of brand name | |
| 7. |
State the elements of marketing mix. |
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Answer» Variables of the marketing mix are broadly classified into four categories, popularly known as `4Ps` of marketing. `(i)` Product `(ii)` Price `(iii)` Place `(iv)` Promotion |
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| 8. |
How does branding help in creating product differentiation ? Does it help in marketing of goods and services ? Explain . |
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Answer» By giving a unique name, sign or symbol to a product, branding enables a firm to distinguish its product from that of its competitors. This enables the firm to secure and control the market for its products. Yes, branding helps in marketing of goods and services because of the following reasons : `(i)` Helps in advertising and display programmes Without a brand, the advertiser cannot promote and create awareness for and sale his product. `(ii)` Helps in product identification Branding helps the customer to easily identify the product and reduces the requirement of inspection. `(iii)` Ensures quality Branding ensures a particular level of quality of the product and helps in building the confidence of the customers. `(iv)` Status symbol Sometimes, brands become status symbols and customers feel proud and satisfied in purchasing them. |
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| 9. |
What is the marketing concept ? How does it help in the effective marketing of goods and services? |
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Answer» Marketing concept This concept emphasises that in the lone-run, profits can be maximised by identifying and satisfying the needs of present and potential customers. Therefore, customer satisfaction became the focal point of all business decisions. It helps in the effective marketing of goods and services in the following ways : `(i)` Role in a firm: Marketing emphasises customer satisfaction as the key to survival and growth of an organisation. It helps to focus the activities of the organisation on fulfilling the needs and wants of consumers, by designing the product according to them. This helps to develop brand loyalty and bring prosperity for the firm. `(ii)` Role in the economy: Marketing acts as a catalyst in economic development of a country and helps in raising living standard of the people. Marketing inspires people to undertake various activities and to set-up enterprises for producing goods that are demanded in the market, and ensure smooth flow of goods through efficient distribution system. It helps to establish linkages between the business, accelerating economic activity, leading to higher incomes, more consumption, increased savings and investment. |
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| 10. |
What is marketing mix? What are its main elements? Explain. |
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Answer» Marketing Mix - A mixture of several ideas and plans followed by a marketing representative to promote a particular product or brand is called marketing mix. Elements of Marketing Mix The elements of marketing mix are often called the four P’s of marketing. `1.`Product:Goods manufactured by organizations for the end-users are called products.It can be of two types - Tangible Product and Intangible Product (Services).An individual can see, touch and feel tangible products as compared to intangible products.A product in a market place is something which a seller sells to the buyers in exchange of money. `2.`Price:The money which a buyer pays for a product is called as price of the product. The price of a product is indirectly proportional to its availability in the market. Lesser its availability, more would be its price and vice a versa.Retail stores which stock unique products (not available at any other store) quote a higher price from the buyers. `3.`Place:Place refers to the location where the products are available and can be sold or purchased. Buyers can purchase products either from physical markets or from virtual markets. In a physical market, buyers and sellers can physically meet and interact with each other whereas in a virtual market buyers and sellers meet through internet. `4.`Promotion:Promotion refers to the various strategies and ideas implemented by the marketers to make the end - users aware of their brand. Promotion includes various techniques employed to promote and make a brand popular amongst the masses. |
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| 11. |
How does branding help in creating product differentiation? Does it help in marketting of goods and services? Discuss. |
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Answer» Branding implies giving a unique name, sign, symbol or term for the identification of a product.It is one of the most important decisions for a marketer. Through branding the firms differentiate their products from that of other similar products. If instead of branding the firms opt for a generic name for their product, they would not be able to distinguish their product from that of competitors. This is because a generic name would represent the whole class of the product. It not only helps in product differentiation, rather also helps in marketing of goods and services. The following points highlight the importance of branding in marketing of goods and services. `1.` Helps in Advertisement: Branding helps a firm to advertise their product. Unless branding is not done a product cannot be advertised. Advertisement for a generic product can only create awareness about the category of product as a whole. It cannot attract customers towards a specific product. On the other hand, advertisement for a branded product helps in highlighting the specific qualities and features of the product. `2.` Enables Differential Pricing: Good branding helps in creating a loyalty of the consumers towards the product. The firms can benefit from this loyalty and charge a different price for their product from that of their competitors. For example, if consumers become habitual of using a particular product they would not mind paying a slightly higher price for it. `3.` Facilitates Introduction of New Products: Good branding helps in establishing a base for the introduction of a new product. If a new product is launched under an established and reputed brand then, it gets an initial boost and benefits from the brand name. Nowadays, many companies such as Samsung, Cadbury, etc. have multiple products under a single brand name. |
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| 12. |
What is the marketing concept? How does it help in the effective marketting of goods and services? |
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Answer» Marketing refers to the process wherein the buyers and sellers interact with each other for purchase and sale of goods and services.It is concerned with exchange of goods and services from producer to consumers which involves many activities. It involves planning,designing the product,packaging and labeling of the product,standardizing,branding,warehousing,transportation,advertising,pricing and distribution.It also includes activities that are performed even after the sale of product such as,maintaining customer relations and collecting feedback.These activities are basically the functions performed under marketing.Thus,marketing helps in the effective marketing of goods and services. |
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| 13. |
Anu and Manu are students of management, working on a project of marketing. While promotiong a product, Anu emphasised on supplying information about the product, while Many emphasised only on popularising it and persuading people to buy it. Which out of the two information or persuasion should b e focussed upon ? |
| Answer» Promotion refers to the process of infoming the customers about the product and then persuading them to buy it. The popular methods of promotion are advertising, sales promotion, personal selling and public relations. All marketer uses the promotion mix, i.e. combination of promotional tools according to their budget, nature of customers, nature of product, coverage, cost, etc. Thus, it is dual oriented, as it involves information on one hand and persuassion on the other. | |
| 14. |
Outline the objective of marketting management. |
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Answer» Management is the process of achieving the goals of the organisation effectively and efficiently. Following are the objective of management: `1.` Organisational Objective :It is the responsibility of the management to achieve the objectives for the organisations. It has to achieve various objective including interest of all stakeholders, customers, employees and the government. Under organisational objective, three main objectives of management are profit, survival, and growth. (i) Survival - The basic objective of any business is to survive in the competitive market. For this, an organisation must earn enough revenue so that it can survive in the market. (ii) Profit - Surviving is not the only objective, earning the profit is also important. So any business should earn good amount of profit. (iii) Growth - Growth is also an important objective because for long-term existence growth of a business organisation is important. `2.` Social Objective :Social objective includes the creation of benefit to society. In other words, the business should contribute to the development of society. For example, business should use environmentally friendly methods of production, providing goods at a reasonable price without any adulteration, etc. `3.` Personal Objective :This objective states that an organisation is made up of different people who belong to a different background, experiences and have different personal objectives and dreams. So, an organisational objective should be satisfied in such a way that these people personal objectives should also be full filed. |
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| 15. |
Outline the objectives of marketing management. |
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Answer» The three objectives of marketing management are : `(i)` To secure consumer satisfaction. `(ii)` To sere the society by providing standard goods at reasonable prices. `(iii)` To attain profitability in the marketing of goods and services. |
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| 16. |
Define marketing management in present context. |
| Answer» Marketing management is the analysis, planning, implementation and control of programmes designed to bring about desired exchanges with target markets for the purpose of achieving organisational objectives. | |
| 17. |
Marketing is much more than selling. Comment. |
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Answer» Marketing is much more than selling as it includes wide range of activities of selling with other activities.The following points highlight the difference between marketing and selling.
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| 18. |
Explain the meaning of the term promotion mix. |
| Answer» Promotion mix refers to all the decisions related to increase in sale of goods and services,e.g.,advertisements,publicity,etc. | |
| 19. |
What is meant by Promotion Mix? |
| Answer» It refers to all the decisions related to increase in sale of goods and services, e.g. advertisement, publicity etc. | |
| 20. |
Define brand, brand name, brand mark and trademark. |
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Answer» Brand :It is a name, sign, symbol or design or a combination thereof, used to identify the goods or services of a seller and to differentiate them from those of competitors.e.g. Lux, Coca Cola, Parker, etc. Brand name: It consists of words, numbers or letter which can be pronounced such as Maggi, Uncle chips, etc. Brand mark: It refers to symbols, designs, marks, etc which can only be seen but not pronounced. e.g. Devil of Onida. Trademark: It means a brand or a part of brand that enjoys legal protection. e.g. Hyundai sign on Hyundai cars. |
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| 21. |
Marketing is the central point of concern in the context of development of economy. Comment. |
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Answer» Marketing acts as a catalyst in economic development of a country and helps in raising living standard of the people. Marketing inspires people to undertake various activities and to set-up enterprises for producing goods that are demanded in the market, and ensure smooth flow of goods through an efficient distribution system. It helps to establish linkages between the business, accelerating economic activity, leading to higher incomes, more consumption, increased savings and investment. |
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| 22. |
………refers to the important decisions related to the product such as quality, design, branding, product packaging, labelling, etc.A. Marketing mixB. Product mixC. Promotion mixD. Marketing |
| Answer» Product mix refers to the important decisions related to the product such as quality, design, branding, product packaging, labelling, etc. | |
| 23. |
Explain the role of marketing in an economy. |
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Answer» The economic development of a country is very closely related to marketing, so it can be said marketing plays an invaluable role in the economy. It mainly motivates firms and other producers to manufacture goods according to the need of the consumer, and this sets off a chain of events. Marketing will also help overcome the obstacles to entering a new market. It keeps the demand and supply of goods in check by ensuring smooth production and distribution of goods. So the production and consumption balance out and the price remains stable in the long run. At the end of the day, marketing is basically a non-replaceable element of the economy. It connects the production centres with the consumption centres. These economic activities (occurring due to marketing) keep the economy running and even boost the GDP of the country. It leads to higher per capita income, more savings and hence more investments (cyclic flow of money). |
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| 24. |
Which of the following functions of marketing ?A. Gathering and analysing market informationB. Marketing planningC. Standardisation and gradingD. All of the above |
| Answer» Gathering and analysing market information,Marketing planning and Standardisation and grading are the functions of marketing. | |
| 25. |
What is a trademark ? |
| Answer» A trademark is a marketing device that visually sets a company or product apart from similar items trying to gain market share. Trademarks are forms of intellectual property that are unique to a company and or its products. Slogans, symbols, or inventive catchphrases are common examples of trademarks | |
| 26. |
BOGOF (Buy one get one free) is an example of one of the techniques of promotion mix. Name the technique. |
| Answer» Correct Answer - Quantity deals. | |
| 27. |
Marketing plays a very important role in the economy byA. raising living standard of the peopleB. ensuring smooth flow of goods through efficient distribution systemC. accelerating economic activityD. All of the above |
| Answer» Marketing acts as a catalyst in economic development of country and helps in raising living standard of the people. It helps in ensuring smooth flow of goods through the efficient distribution system. It helps to establish linkages between the business, accelerating economic activity, leading to higher incomes etc. | |
| 28. |
Identify the technique of promotion in which we get the direct feedback. |
| Answer» Correct Answer - Sales promotion | |
| 29. |
Why is price so important in marketing ? |
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Answer» Price is an important element of marketing mix due to the following reasons : `(i)` It determines the sales volume and profit margin of the manufacturer/dealer. `(ii)` It influences the competitive strength of a product. `(iii)` It affects promotion and place components of marketing mix. `(iv)` It determines the purchasing power and standard of living of consumers. `(v)` Without pricing, there can be no marketing, as sales takes place after the buyer and seller agree on the price. |
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| 30. |
List any four methods of direct distribution. |
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Answer» It adopts the direct channel of distribution. Direct channels of distribution means the manufacturer directly sells goods to consumers. There is no middlemen or intermediary between the two. Direct channels are of following types : `(i)` Manufacturer sets up his own retail shops to sell his product, e.g. Bata Shoe Company. `(ii)` Selling through mail or mail order business. `(iii)` Door to door selling. e.g. Aquaguard water purifier. `(iv)` Telemarketing, i.e. through the television. `(v)` Internet marketing. `(vi)` Vending machines. e.g. Amul, Parag and Mother Dairy milkbooths. |
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| 31. |
Haldiram is selling fast food to the customers. Write the name of the channel of distribution used by the company. |
| Answer» Direct or zero level channel of distribution | |
| 32. |
Name any two companies, which use direct channel of distribution. |
| Answer» Direct Channel (Zero Level):It facilitates direct relationship between the manufacturer and the customer. Examples – e-business (selling through internet); Direct Mail Order Houses; Chain Stores (Colourplus, Nike, Bata etc.); Direct selling (Amway; Oriflame etc.) | |
| 33. |
Which channel of distribution does Amul Parlours adopt ? Discuss in brief. |
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Answer» It adopts the direct channel of distribution. Direct channels of distribution means the manufacturer directly sells goods to consumers. There is no middlemen or intermediary between the two. Direct channels are of following types : `(i)` Manufacturer sets up his own retail shops to sell his product, e.g. Bata Shoe Company. `(ii)` Selling through mail or mail order business. `(iii)` Door to door selling. e.g. Aquaguard water purifier. `(iv)` Telemarketing, i.e. through the television. `(v)` Internet marketing. `(vi)` Vending machines. e.g. Amul, Parag and Mother Dairy milkbooths. |
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| 34. |
For most consumer goods like soaps, oils, clothes, rice, sugar, pulses, etc. which type of channel of distribution is the most suitable?A. Direct channelB. One level channelC. Two level channelD. Three level channel |
| Answer» Correct Answer - Two level channel | |
| 35. |
What shopping products have been purchased by you/ your family in the last six months. Make a list and specify what factors infulence the purchase of each of these products. |
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Answer» The various shopping product purchased by me and my family in the last six months are : `(i)` Microwave The reason/factor behind its purchase was that during Diwali season there was a great offer of getting a over free with a microwave. `(ii)` Washing machine On the eve of new year, many companies offered shopping products on a rebate, which motivated me to purchase it. `(iii)` Air conditioner Since, winter season is off-season for shopping products like A/cs, I purchased it to avail the benefit of huge discount on the product. |
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| 36. |
List five shopping products purchased by you and your family during the last few months. |
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Answer» Suggested Answer `(i)` Air Conditioner `(ii)` Refrigerator `(iii)` Microwave `(iv)` Water Purifier `(v)` Washing Machine |
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| 37. |
What are the llimitations of advertising as a promotional tool? Enlist. |
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Answer» The following are the limitations of advertising as a promotional tool. (i) It lacks personal form of communication and thereby is less forceful. (ii) Evaluation regarding the effectiveness of the advertisement is very difficult to conduct. (iii) Advertisements come in standardised form and cannot be moulded as per the requirements of different consumer groups. (iv) Effectiveness of advertising is low as there can be numerous advertisement. |
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| 38. |
Enlist the advantages of packaging of a consumer product. |
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Answer» The advantages of packaging are : `(i)` It helps in product identification. `(ii)` It helps in product protection. `(iii)` It facilitates use of the product. `(iv)` It helps in product promotion. |
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| 39. |
What are the limitations of advertising as a promotional tool ? |
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Answer» Advertising faces following limitations : `(i)` It is less forceful. `(ii)` It lacks feedback. `(iii)` It is inflexible. `(iv)` It has low effectiveness. |
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| 40. |
Identify and explain the promotional tool of marketing mix, which involves oral presentation of message with one or more prospective customers for the purpose of making sales. Also, explain any three benefits of this tool in the economic progress of the society. |
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Answer» Personal selling involves oral presentation of message in the form of conversation with one or more prospective customers for the purpose of making sales. It involves a face-to-face communication between a seller and a buyer. The persons who do the job of personal selling are called salesman or sales representatives. Benefits of personal selling in the economic progress of the society are : `(i)` Personal selling converts latent demand into effective demand, which results in increase in sales thus bringing about economic growth. `(ii)` Standardisation Personal selling increases product standardisation and uniformity in consumption pattern. `(iii)` Provides employment opportunities It offers employment opportunities to the unemployed youth. |
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| 41. |
……….is the process of planning, organising, directing and controlling the activites relating to exchange of goods and services.A. Marketing managementB. Sales managementC. Personnel managementD. Financial management |
| Answer» Marketing management .is the process of planning, organising, directing and controlling the activites relating to exchange of goods and services. | |
| 42. |
It is necessary that goods and services must be made a available to the customers at the right place, in the right quantity and at right time. (a) Name and explain the element of Marketing Mix given above. (b) Explain the components of this element. |
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Answer» (a) Place/physical distribution (b) Elements of Physical distribution /Place (i) Transportation (ii) Warehousing (iii) Inventory control (iv) Order Processing |
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| 43. |
A gift of trolley with the purchase of inverter of Okaya Company is an example of which sales promotion technique ? |
| Answer» Correct Answer - Product | |
| 44. |
Differentiate between product combination and quantity gift. |
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Answer» Product Combination:Under this method, along with the main product some other product is offered to the customer as a gift. Quantity Gift:Under this method, some extra quantity of the main product is passed on as a gift to the customers. For example, 25% extra toothpaste in a packet of 200 gm tooth paste. Similarly, a free gift of one RICH LOOK shirt on the purchase of two shirts. |
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| 45. |
At which level of packing, the immediate container is reffered to? |
| Answer» In primary package immediate container is reffered to. | |
| 46. |
Give two examples of convenience products. |
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Answer» Two examples of convenience products are : `(i)` Bread `(ii)` Ice-cream |
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| 47. |
What is meant by industrial product ? |
| Answer» It refers to those products, which are purchased by the producers for manufacturing consumer goods. | |
| 48. |
A dealer wants to send some gift times of glassware from Mumbai to Lucknow. Which type of packging is needed here ? |
| Answer» Transportation packaging | |
| 49. |
A tea producer uses such packet/things for packing tea, which can be used,even after consuming the tea, for other purposes. Here, which values are being affected by him? |
| Answer» Correct Answer - Packaged Gift. | |
| 50. |
A company makes false claims about getting power from drinking soft drink. What values are lacking in the company? |
| Answer» Correct Answer - Value of Honesty. | |