OU M.B.A. I – Semester Marketing Management Model Paper 2024

PART – A (5×4 = 20 Marks)
[Short Answer Type]
Note: Answer all the questions in not more than one page each.

1. Differentiate the terms Market and Marketing

  • Market: A market refers to a physical or virtual place where buyers and sellers interact to exchange goods and services. It includes all the potential customers who might be interested in a particular product or service. Markets can be segmented into different types based on geography, demographics, behavior, and other factors. For example, a local grocery store, an online marketplace, or the global stock market.
  • Marketing: Marketing, on the other hand, refers to the activities, strategies, and tactics used by businesses or individuals to promote and sell products or services. It involves understanding consumer needs, designing a product or service to meet those needs, promoting it effectively, distributing it, and managing relationships with customers. Marketing includes research, advertising, sales, public relations, and customer service efforts. It is the action or process of bringing a product to the market.

2. Write a short note about Market Targeting

Market Targeting is the process of identifying and selecting specific segments of the market to focus on, with the goal of tailoring products, services, and marketing efforts to meet the unique needs of that segment. Market targeting follows market segmentation, which divides a broad market into smaller, more defined groups based on characteristics such as age, income, interests, and location. After segmentation, businesses evaluate the potential of each segment and select the most appropriate ones to target.

Targeting allows companies to use their resources efficiently and effectively by focusing on groups most likely to purchase their products. There are several strategies for market targeting:

  • Undifferentiated marketing: Targeting the whole market with one offering.
  • Differentiated marketing: Targeting several segments with different offerings.
  • Concentrated marketing: Focusing on a single, high-value segment.
  • Micromarketing: Tailoring offerings to individual customers or local segments.

3. Brand

A brand is the identity of a product, service, or company that differentiates it from others in the market. It consists of various elements such as the name, logo, slogan, design, and even the reputation or perceived quality of the product or service. A brand serves to create recognition and foster trust and loyalty among consumers.

  • Brand Identity: Includes the visible aspects like logos, colors, and design.
  • Brand Image: Refers to how customers perceive the brand in their minds.
  • Brand Equity: The value a brand adds to a product or service based on consumer perception, loyalty, and associations.

Branding is important because it influences customer choices, builds emotional connections, and helps companies command higher prices or loyalty. Strong brands like Apple, Nike, or Coca-Cola have substantial equity, allowing them to maintain a competitive edge.

4. Industrial Markets

Industrial markets refer to the markets where businesses sell goods and services to other businesses rather than to individual consumers. These markets involve products that are used for further production, for resale, or for operational purposes. For example, manufacturers selling raw materials like steel or machinery to factories, or software providers selling enterprise solutions to large corporations.

Characteristics of industrial markets include:

  • B2B transactions (Business-to-Business) as opposed to B2C (Business-to-Consumer).
  • Longer buying cycles: Due to the complexity and higher cost of products.
  • Fewer customers but larger transaction volumes.
  • Specialized products: Often require customization to meet specific industrial needs.
  • Strong relationships: Customer loyalty and long-term contracts are typical in industrial markets.

Examples of industrial markets include manufacturers of industrial machinery, wholesale suppliers, and professional services like consulting firms.

5. Strategic Control

Strategic control refers to the process of monitoring and evaluating an organization’s strategy to ensure that it is achieving its intended objectives. It involves setting up mechanisms to assess whether the implemented strategies are delivering the expected outcomes and making adjustments as necessary.

Strategic control includes:

  • Monitoring the external environment: Keeping track of market trends, competition, and other external factors that can affect the strategy.
  • Internal performance assessment: Analyzing the company’s performance metrics, financial results, and operational efficiency.
  • Feedback and adjustment: If the strategy is not working as planned, adjustments are made, such as re-targeting the market or improving operational processes.

Types of strategic control include:

  • Premise control: Ensures that the assumptions upon which a strategy is based remain valid.
  • Implementation control: Monitors how well a strategy is being executed.
  • Strategic surveillance: A broad, ongoing monitoring of any trends that might impact the strategy.

Strategic control helps organizations stay on track and adapt to changing conditions in order to achieve long-term success.

PART – B (5×12 = 60 Marks)
[Essay Answer Type]
Note: Answer all the questions by using internal choice
in not exceeding four pages each.

6. a) Discuss different tasks of Marketing.

Marketing involves a wide range of tasks aimed at promoting and selling products or services. These tasks can be broadly categorized into several key activities:

  1. Market Research: Understanding the market, consumer behavior, competition, and trends. This helps in identifying customer needs, preferences, and gaps in the market.
  2. Product Development: Creating new products or improving existing ones to meet customer needs. This includes research and development (R&D), design, and innovation.
  3. Segmentation and Targeting: Dividing the market into smaller segments based on demographic, psychographic, or behavioral characteristics, and selecting the most profitable segment to target.
  4. Positioning: Establishing a distinct image and identity for the product or service in the minds of consumers, ensuring it stands out from competitors.
  5. Pricing: Setting the right price for a product or service, balancing factors like cost, demand, competition, and perceived value.
  6. Promotion: Creating awareness and persuading customers to purchase through advertising, sales promotions, public relations, and personal selling.
  7. Distribution (Place): Determining how and where products will be made available to customers, including selecting distribution channels like wholesalers, retailers, and e-commerce platforms.
  8. Customer Relationship Management (CRM): Building and maintaining long-term relationships with customers to ensure loyalty, repeat business, and positive word-of-mouth.

6. b) Write in detail about the macro environment.

The macro environment refers to the external factors that affect a business’s performance, but are generally beyond its control. These factors influence marketing strategies and decisions, and include:

  1. Political and Legal Environment: Laws, regulations, and government policies that affect how businesses operate. This can include tax laws, labor laws, trade restrictions, and government stability.
  2. Economic Environment: The overall economic conditions, including factors such as inflation, interest rates, unemployment, economic growth, and consumer purchasing power. These elements affect consumer spending and business investment.
  3. Socio-Cultural Environment: Social and cultural factors such as lifestyle changes, demographic shifts, cultural attitudes, and values that influence consumer behavior and product preferences.
  4. Technological Environment: Technological advancements and innovations that create new opportunities and challenges for businesses. Examples include the rise of the internet, mobile technologies, automation, and artificial intelligence.
  5. Environmental (Ecological) Factors: Environmental issues such as climate change, sustainability, and the natural resources available for production. Companies are increasingly required to adopt environmentally friendly practices.
  6. Competitive Environment: The structure and intensity of competition within an industry. This includes direct competitors, substitute products, and the threat of new entrants.
  7. Global Factors: International trends, such as globalization, foreign market conditions, international trade agreements, and cultural influences from different countries.

All these factors in the macro environment shape business opportunities, threats, and challenges.

7. a) How do you measure demand? What are the sales forecasting methods?

Measuring Demand: Demand can be measured in different ways, including:

  1. Quantity Sold: The amount of product or service sold in a given period.
  2. Consumer Surveys: Gathering data from customers through surveys to understand their willingness to buy at different price points.
  3. Market Analysis: Studying trends, past sales data, and consumer behavior to estimate future demand.

Sales Forecasting Methods: Sales forecasting is predicting future sales, which helps in planning production, marketing, and budgeting. Some common methods include:

  1. Qualitative Methods:
    • Expert Opinion: Gathering insights from industry experts, managers, and salespeople.
    • Market Research: Using customer surveys and focus groups to gather data on potential future sales.
  2. Quantitative Methods:
    • Time Series Analysis: Using historical sales data to predict future demand based on past patterns.
    • Regression Analysis: Analyzing the relationship between sales and various independent variables (e.g., price, advertising spend, etc.).
    • Moving Averages: Using an average of sales over a set period to predict future sales.
  3. Delphi Method: A structured method involving experts who provide anonymous forecasts and feedback until a consensus is reached.
  4. Sales Force Composite: Salespeople estimate the sales for their regions, and the aggregate is used for forecasting.

7. b) How do you segment the business markets? Explain in detail.

Business market segmentation involves dividing a large, diverse market into smaller, more manageable segments, focusing on specific customer needs and characteristics. The main ways to segment business markets include:

  1. Geographic Segmentation: Dividing the market by location, such as regions, countries, or cities. This helps businesses target customers based on regional preferences or needs.
  2. Demographic Segmentation: Segmenting based on factors such as company size (small, medium, large), industry (manufacturing, services, retail), or job function (purchasing managers, CEOs).
  3. Behavioral Segmentation: Based on how businesses use products or services. This could include factors like:
    • Usage rate: Heavy, medium, or light users of the product.
    • Benefits sought: The specific benefits businesses expect from a product, such as cost savings, efficiency, or innovation.
  4. Firmographic Segmentation: Similar to demographic segmentation, but focuses on company-specific data such as revenue, number of employees, and growth rate.
  5. Psychographic Segmentation: Based on the values, attitudes, and behavior of business decision-makers, such as risk-averse vs. risk-taking companies or environmentally conscious firms.
  6. Industry Segmentation: Targeting businesses within a particular industry, such as healthcare, IT, education, or retail. Companies in different industries often have unique needs and purchasing behavior.

Segmenting business markets helps tailor marketing efforts to meet the specific needs of each segment.

8. a) What are the steps involved in New Product Development? Write in detail.

New Product Development (NPD) involves several key steps to ensure that the product meets market demands and is successful in the market. The main steps are:

  1. Idea Generation: This is the first stage, where new product ideas are created. Sources include R&D, employee suggestions, customer feedback, competitor analysis, and market research.
  2. Idea Screening: Not all ideas are viable, so screening helps evaluate the potential of each idea. Feasibility, profitability, and alignment with business strategy are key criteria for selection.
  3. Concept Development and Testing: In this step, the selected ideas are developed into product concepts. The concepts are then tested with a sample of potential customers to gauge interest and receive feedback.
  4. Business Analysis: The financial feasibility of the product is evaluated. This includes cost analysis, pricing strategies, and potential profit margins.
  5. Product Development: Once the concept passes the business analysis phase, it is developed into a prototype. This stage may involve creating initial versions of the product and refining them based on technical specifications.
  6. Market Testing: The product is introduced to a limited market to gauge customer reaction. Feedback from the test market is used to make any necessary adjustments.
  7. Commercialization: If the product performs well in market testing, it is launched on a larger scale. This involves finalizing marketing strategies, distribution channels, and sales strategies.
  8. Post-Launch Review and Monitoring: After launch, the product’s performance is monitored. This involves analyzing sales data, customer feedback, and market conditions to make improvements.

8. b) Narrate the important channel management decisions.

Channel management involves decisions regarding the selection, management, and motivation of intermediaries who help distribute products. Key decisions include:

  1. Channel Design: Choosing the type and number of intermediaries (wholesalers, retailers, agents) based on the product, market, and company objectives.
  2. Channel Selection: Deciding which distribution channels (direct sales, retailers, e-commerce, etc.) to use to reach the target customers most effectively.
  3. Channel Motivation: Providing incentives, support, and training to intermediaries to motivate them to sell the product effectively. This can include commissions, bonuses, or cooperative marketing.
  4. Channel Control: Monitoring and controlling the activities of intermediaries to ensure they align with the company’s objectives. This may involve setting performance targets and evaluating their progress.
  5. Channel Conflict Management: Managing disputes or disagreements between channel members, which could arise due to issues like pricing, territories, or product promotions.
  6. Channel Termination: Deciding when to exit or modify a distribution channel that is no longer profitable or aligned with business goals.

9. a) Write in detail about any two models of consumer behaviour.

  1. The Stimulus-Response Model: This model is based on the idea that consumer behavior is driven by external stimuli. The process includes:
    • Stimuli: External factors like advertisements, sales promotions, product packaging, etc.
    • Black Box: The consumer’s internal psychological process (perception, attitudes, learning, etc.) that determines the response.
    • Response: The consumer’s decision, such as purchasing a product or forming an attitude.
    This model focuses on how stimuli (marketing inputs) influence consumer responses.
  2. The Buyer Decision Process Model: This model describes the steps consumers take when making purchasing decisions:
    • Problem Recognition: Realizing a need or problem.
    • Information Search: Gathering information to solve the problem.
    • Evaluation of Alternatives: Comparing different products or brands.
    • Purchase Decision: Making the final decision to purchase.
    • Post-Purchase Behavior: Evaluating satisfaction after the purchase, which can affect future buying decisions.

9. b) What are the characteristics of industrial markets? Explain.

Industrial markets have several unique characteristics that differentiate them from consumer markets:

  1. B2B Transactions: Industrial markets involve businesses selling products to other businesses, not to individual consumers.
  2. Fewer Buyers: Unlike consumer markets, industrial markets have fewer but larger buyers, often with bulk orders.
  3. Complex Buying Process: Purchasing decisions are often made by committees or teams, involving multiple stakeholders and longer decision-making processes.
  4. Longer Sales Cycles: The buying process in industrial markets can take a long time due to negotiations, customization needs, and long-term contracts.
  5. Customization: Products sold in industrial markets are often tailored to the specific needs of the buyer, making the products more complex.
  6. Relationship-Oriented: Companies in industrial markets typically build long-term relationships with their buyers, often relying on personal selling and after-sales service.
  7. Professional Buyers: Buyers in industrial markets are professionals who understand the technical aspects of the products they purchase.

10. a) Write different types of marketing organization structures.

Marketing organizations can be structured in various ways, depending on the size of the company, the complexity of its operations, and its market goals:

  1. Functional Structure: This is the most common structure, where the marketing team is divided into different departments, such as advertising, sales, market research, and public relations.
  2. Product-Based Structure: The organization is structured around product lines or product categories. Each product category or product manager has their own team.
  3. Geographical Structure: This is used by businesses that operate in multiple regions or countries. Marketing teams are organized by geographic area to cater to local preferences and market conditions.
  4. Customer-Based Structure: The company divides its marketing efforts by customer segments, such as individual consumers, businesses, or government clients.
  5. Matrix Structure: Combines two or more organizational structures, such as product and geography or product and customer segments, to manage complex marketing efforts.

10. b) What is the purpose of Marketing Audit? State its uses.

A marketing audit is a comprehensive, systematic review of a company’s marketing environment, objectives, strategies, and activities. The purpose of a marketing audit is to identify problems, opportunities, and areas for improvement in the marketing strategy.

Uses of a Marketing Audit:

Market Trends: Highlight emerging trends, consumer behaviors, and market shifts.

Performance Evaluation: Assess the effectiveness of current marketing strategies and identify areas for improvement.

Strategy Alignment: Ensure marketing activities align with business goals and objectives.

Resource Allocation: Help businesses allocate resources more efficiently by identifying areas that need more or less investment.

Competitive Advantage: Identify opportunities to differentiate from competitors.