1. Product planners need to consider the product on three levels.
What is the most basic level that
addresses the question: what is the buyer really buying? 1. Core product 2. Augmented product
3.Potential Product
2. Ramesh, an owner of Auto spares parts having its operations spread all across India through its
Business Partners, Sitting with its core team in the meeting room discussing the marketing
strategies. The people in the team were of the view that consumers prefer spares that are
widely available for their vehicles and are in-expensive in nature? The team member were
referring to _______________________ 1. Production Concept 2. Marketing Concept 3. Product
Concept
The Production Concept: The production concept explains that consumers like to purchase those
products which are available in abundance in the market and are priced less. Managers of
production-oriented organizations focus on attaining high levels of production at low costs and
mass distribution. The production concept is used by marketers when they want to penetrate
the market. For example, to remove the barriers to the adoption of computers, manufacturers
lower the price by increasing production.
3 . In reference to the above discussion, where Ramesh and his Core Team were into the
discussion couple of the members who were from Research and Development emphasized and
stated that the consumer shall favor those products that offers quality, performance or 2.5 CO1
innovative in nature rather just being inexpensive in the market. The members while discussing
refers to ________________________________ 1. Product Concept 2. Production Concept 3.
Marketing Concept
The Product Concept: The product concept explains that customers seek superior quality
goods and services, which offer good performance and innovative features. A new or modified
product usually proves to be a success in the market when it is priced, advertised, distributed
and sold efficiently. iPhone is a good example of this concept as every new model introduced
has better features, higher pricing, and greater demand.
4 .The Ramesh during the discussion was of the view that consumer and businesses, if left alone
will ordinarily not buy enough of the organization’s products. The Company must therefore
undertake aggressive promotional and selling efforts for increasing the turnover of the
company. The Ramesh being the owner of the company was laying emphasis
on_____________________ 1. Sales concept 2. Promotional Concept 3. Marketing Concept
5. During the discussion Ramesh also had a discussion with its strategic team and wanted to
know the exact position of Company in the market. The strategic team revealed that some of
the Products of the company are ruling the market, although the more, the growth of the
market since couple of years has shown decline in growth? The team identified the position of
the business as___________________________ 1. Cash Cow 2. Star 3. Dog
6 . To remain competitive in the market and sustain the ongoing trend, Rames suggested the
company’s strategy regarding sales team that sales persons shall contact the customers from
time to time and seek suggestions about the improved product use. Ramesh basically wanted
sales team to adopt _______________ approach. 1. Proactive Marketing 2. Accountable
Marketing 3. Reactive Marketing
7. Arvind Mills, a famous name in the world of fabrics, wanted to introduce totally new range of
products that is going to appeal various customer segment. For the purpose the CMD of the
company wants to know most fundamental determents of person’s wants and behavior. To
conclude the study, the marketing team identified the segment based on____________ 1.
Culture 2. Subculture 3. Social Class
8. While conducting the survey for Arvind Mills the research team came across the fact that
there exist groups with shared values, emerged out of their special life experiences or
circumstances. Such types of groups can be categorized
under____________________________________ 2.5 CO1 1. Sub-Culture 2. Culture 3. Social
Class
9. The Research Team while conducting the survey for Arvind Mills Ltd also studied that in case if
the customer is satisfied with the product, shall buy the product / brand again and again. The
customer behavior studied under such a circumstances, can be classified as______________ 1.
Routinized [RPS] 2. Limited [LPS] 3. Extensive [EPS]
10. The persons enduring favorable or unfavorable evaluations, emotional feelings, and action
tendencies towards some idea or object is known as
1. Attitude 2. Belief 3. Perception
11. Marketing is all about creating, communicating & delivering ……………………Valuesm
…………
12. In today’s world, customers buy benefits / services / solutions & not ………Products……………..
13 .Demand which exists for controversial products can be classified under a.) Unwholesome
demand b.) Full demand c.) Latent demand d.) Irregular demand
Unwholesome demand is demand for things that most people perceive as bad. They may be bad, for
example, for your health, or perhaps they are a danger to society. When there is unwholesome demand
for a product, there are efforts to discourage consumers from purchasing it.
Products such as cigarettes and alcoholic drinks have serious health risks. Many people and groups try to
discourage us from buying tobacco products or abusing alcohol. However, demand for them exists
regardless. Therefore, there is unwholesome demand for cigarettes and alcoholic drinks.
ii) Product mix means? a.) Product line, product width, product depth b.) Product width, product
height, product depth c.) Product depth, product height, product line d.) All of the above iii)
Which of the following is NOT a part of support activity given by Michael Porter a.) Operations
b.) Procurement c.) Technology d.) Firm infrastructure
Porter’s Value Chain Primary Activities
Inbound Logistics
Inbound logistics include the receiving, warehousing, and inventory control of a company's raw materials. This
also covers all relationships with suppliers. For example, for an e-commerce company, inbound logistics would be
the receiving and storing of products from a manufacturer that it plans to sell. 4
Operations
Operations include procedures for converting raw materials into a finished product or service. This includes
changing all inputs to ready them as outputs. In the above e-commerce example, this would include adding labels
or branding or packaging several products as a bundle to add value to the product. 5
Outbound Logistics
All activities to distribute a final product to a consumer are considered outbound logistics. This includes delivery
of the product but also includes storage and distribution systems and can be external or internal. For the e-
commerce company above, this includes storing products for shipping and the actual shipping of said products. 5
Marketing and Sales
Strategies to enhance visibility and target appropriate customers—such as advertising, promotion, and pricing—
are included in marketing and sales. Basically, these is all activities that help convince a consumer to purchase a
company’s product or service. Continuing with the above example, an e-commerce company may run ads on
Instagram or build an email list for email marketing. 5
Services
This includes activities to maintain products and enhance consumer experience—customer service, maintenance,
repair, refund, and exchange. For an e-commerce company, this could include repairs or replacements, or
a warranty.5
Porter's Value Chain Secondary Activities
Now, companies can further improve the primary activities of their value chain with secondary activities. Value
chain support activities do just that, they support the primary activities. The support, or secondary, activity
generally plays a role in each primary activity. 6 Such as human resource management, which can play a role in
operations, marketing, and sales. Here are the four supporting activities.
Procurement
Procurement is the acquisition of inputs, or resources, for the firm. This is how a company obtains raw materials,
thus, it includes finding and negotiating prices with suppliers and vendors. This relates heavily to the inbound
logistics primary activity, where an e-commerce company would look to procure materials or goods for resale. 7
Human Resource Management
Hiring and retaining employees who will fulfill business strategy, as well as help design, market, and sell the
product. Overall, managing employees is useful for all primary activities, where employees and effective hiring
are needed for marketing, logistics, and operations, among others. 8
Infrastructure
Infrastructure covers a company's support systems and the functions that allow it to maintain operations. This
includes all accounting, legal, and administrative functions. A solid infrastructure is necessary for all primary
functions.9
Technological Development
Technological development is used during research and development and can include designing and developing
manufacturing techniques and automating processes. This includes equipment, hardware, software, procedures,
and technical knowledge. Overall, a business working to reduce technology costs, such as shifting from a
hardware storage system to the cloud, is technological development. 1 0
iv) QFD means: a.) When gap between CA and EA is maximum b.) When CA and EA cease to
exist c.) When gap between CA and EA is minimum d.) None of the above
v) Which of the following is not a component of brand equity? a.) Brand awareness b.) Brand
loyalty c.) Brand erosion d.) Brand associations
vi) Which of the following is not a part of BCG matrix? a.) Cash cows b.) Dogs c.) Sky d.) Stars
vii) Which of the following is correct sequence for relationship marketing? a.) Suspect, prospect,
first time customer, repeat customer, member, client, advocate, partner b.) Suspect, prospect,
first time customer, repeat customer, client, advocate, member, partner c.) Suspect, prospect,
first time customer, repeat customer, client, member, advocate partner d.) Suspect, prospect,
first time customer, repeat customer, client, member, partner, advocate
Suspect > Prospect > Customer > Partner > Advocate
viii) Sweepstake means: a.) Raffle draw b.) Money back offer c.) Discount d.) Buy one get one
free
ix) Which of the following movement of SBU within BCG matrix quadrants is not possible
directly? a) Questions marks to Dogs b) Stars to Cash Cows c) Question marks to Cash Cows d)
Cash Cows to Dogs
x) Solar cookers, electric knives, dish washers follow which of the following PLC graph? a.)
Scalloped b.) Style c.) Cycle recycle d.) Growth slump maturity
1. Introduction
Once a product has been developed, it begins the introduction stage of the PLC. In this stage, the
product is released into the market for the first time. The release of a product is often a high-stakes time
in the product's life cycle, although it does not necessarily make or break the product's eventual
success.
During the introduction stage, marketing and promotion are at a high, and the company often invests
quite a bit of effort and capital in promoting the product and getting it into the hands of consumers. This
is perhaps best showcased in Apple's (AAPL) - Get Apple Inc. Report famous launch presentations, which
highlight the new features of their newly (or soon-to-be) released products.
It is in this stage that the company is first able to get a sense of how consumers respond to the product,
whether they like it, and how successful it may be. However, it is also often a heavy-spending period for
the company with no guarantee that the product will pay for itself through sales.
Costs are generally very high during this stage, and there is typically little competition. The principal
goals of the introduction stage are to build demand for the product and get it into the hands of
consumers, hoping to later cash in on its growing popularity.
2. Growth
During the growth stage, consumers start taking to the product and buying it. The product concept is
proven as it becomes more popular, and sales increase.
Other companies become aware of the product and its space in the market as it begins to draw more
attention and pull in more revenue. If competition for the product is especially high, the company may
still heavily invest in advertising and promotion of the product to beat out competitors. As a result of the
product growing, the market itself tends to expand. Products are often tweaked during the growth stage
to improve their functions and features.
As the market expands, more competition often drives prices down to make the specific products
competitive. However, sales usually increase in volume and continue to generate revenue. Marketing in
this stage is aimed at increasing the product's market share.
3. Maturity
When a product reaches maturity, its sales tend to slow, signaling a largely saturated market. At this
point, sales may start to drop. Pricing at this stage tends to get competitive, so profit margins shrink as
prices begin to fall due to the weight of outside pressures like increased competition and lower demand.
Marketing at this point is targeted at fending off competition, and companies often develop new or
altered products to reach different market segments.
Given the highly saturated market, less-successful competitors are often pushed out of competition
during the maturity stage. This is known as the "shake-out point."
In this stage, saturation is reached and sales volume is maxed out. Companies often begin innovating to
maintain or increase their market share, changing or developing their product to satisfy new
demographics or keep up with developing technologies.
The maturity stage may last a long time or a short time depending on the product. For some brands and
products—like Coca-Cola (KO) - Get Coca-Cola Company Report—the maturity stage lasts a long time
and is very drawn out.
4. Decline
Although companies generally attempt to keep their product alive in the maturity stage as long as
possible, eventual decline is inevitable for virtually every product.
In the decline stage, product sales drop significantly, and consumer behavior changes, as there is less
demand for the product. The company's product loses more and more market share, and competition
tends to cause sales to deteriorate.
Marketing in the decline stage is often minimal or targeted at already-loyal customers, and prices are
reduced.
Eventually, the product is retired out of the market altogether unless it is able to redesign itself to
remain relevant or in-demand. For example, products like typewriters, telegrams, and muskets are deep
in their decline stages (and in fact are almost or completely retired from the market).
ii) Energy cost is _________________________________________________
Energy Cost: is the effort it takes to explore, evaluate, buy, use and dispose-off a product.
3 .j.n.d. means ____ Just Noticeable Difference
v) Backward integration means
Backward integration is a process in which a company acquires or merges with other businesses
that supply raw materials needed in the production of its finished product. Businesses pursue
backward integration with the expectation that the process will result in cost savings, increased
revenues, and improved efficiency in the production process. Companies also use backward
integration as a way of gaining competitive advantage and creating barriers to entry to new
industry entrants.
viii) Product concept means ____________ _________________________
The Product Concept: The product concept explains that customers seek superior quality goods
and services, which offer good performance and innovative features. A new or modified product
usually proves to be a success in the market when it is priced, advertised, distributed and sold
efficiently. iPhone is a good example of this concept as every new model introduced has better
features, higher pricing, and greater demand
x) Individual market is Micromarketting
For instance, banks provide services according to the requirements of customers residing near
the branch, i.e., SME banking, Corporate banking, Premium Banking services, etc.
11. What is triple bottom line audit? a) social , economic and environmental audit b) An audit of
three major financial projects of a business c) an audit by the Physical Health of the employees
d) An audit of the all Sporting resources of enterprise
In economics, the triple bottom line (TBL) maintains that companies should commit to focusing as much
on social and environmental concerns as they do on profits. TBL theory posits that instead of one
bottom line, there should be three: profit, people, and the planet. A TBL seeks to gauge a corporation's
level of commitment to corporate social responsibility and its impact on the environment over time.
In 1994, John Elkington—the famed British management consultant and sustainability guru—coined the
phrase "triple bottom line" as his way of measuring performance in corporate America. The idea was
that a company can be managed in a way that not only makes money but which also improves people's
lives and the well-being of the planet.1
Profit: This is the traditional measure of corporate profit—the profit and loss (P&L) account.
People: This measures how socially responsible an organization has been throughout its history.
Planet: This measures how environmentally responsible a firm has been.2
