CUSTOMER_CODE
SMUDE
DIVISION_CODE
SMUDE
EVENT_CODE
JAN2016
ASSESSMENT_CODE MK0011_JAN2016
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
18734
QUESTION_TEXT
What is positioning strategy? Explain the common bases used for
positioning.
SCHEME OF
EVALUATION
Positioning Approaches
(meaning – 1 mark)
Marketers manage product positioning by focusing their marketing
activities on a positioning strategy, pricing, promotion, channels of
distribution and advertising all are geared to maximize the chosen
positioning strategy.
According to C. merle Crawford, common bases used for positioning
include:
( 9 marks)
1.Features refer to objective physical or performance characteristics and
are often used to differentiate products.
2.Benefits are directly related to products, such as Volvo’s emphasis on
safety and durability. “Sticks in a snap”, Fevi Kwick. Fairglow soap is
“fairness soap”.
3.Usage includes end use, demographic, psychographic, or behavioural
segments for whom the product is meant. It also includes product
popularity.
4.Percentage means the lineage denoting who makes the product.
“Buying a car is like getting married. It’s a good idea to know the
family first,” advises the Mercedes S Class model.
5.Manufacturing process is often used to position the product. Some
expensive watches claim to be “hand crafted,” an appearing proposition
in an age of mass produced artifacts.
6.Ingredients are sometimes highlighted to create a position. For
example, some garment manufacturers claim “One hundred per cent
cotton,” or “Hundred per cent Merino wool.”
7.Endorsements are made either by experts or a common person with
whom the target customers are likely to identify.
8.Comparison with a competitor’s product is a fairly common
positioning approach.
10.Pro-environment approach to positioning aims to show that the
company is a good citizen. Canon mentions on its packages, “Made
from recycled material.”
11.Product class, such as freeze-dried coffee shown as a product that is
a different one from instant or regular coffee.
12.Price/quality is powerful positioning technique. Zenith computers
say “Multinational quality, Indian price.”
13.Country or geographic area, such as German engineering, Russian
vodka, Benarsi silk sari, or Dehradun rice.
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
18735
QUESTION_TEXT
What do you mean by perceptual selection? Explain the different
concepts.
SCHEME OF
EVALUATION
Perceptual Selection
( 3 marks)
Human beings, subconsciously, are quite selective in their perception.
Every day we look at so many things, ignore others and do not even
notice many others. We really perceive only a very small fraction of
stimuli to which we are exposed. In a marketplace, a consumer is
exposed to numerous marketing-related stimuli besides numerous others.
Even then, on a regular basis, consumers visit the market and make
desired purchases without any disorientation or losing sanity. The reason
is that we all unconsciously exercise selectivity in perception. The
selectivity of stimuli depends on consumer’s previous experience and
motives, besides the nature of stimulus itself. One or more factors related
to experience and motives affect consumers ‘selective attention’ at a
given time and can increase or decrease the probability that a certain
stimulus will be perceived.
Concepts
( 7 marks)
Stimulus factors
There are numerous marketing-related stimuli that affect consumers
perception, such as type of product, physical characteristics, packaging,
colour, brand name, advertisement, claims endorser, size of ad, position
of ad or time of commercial etc. The product and its components such as
package, contents and physical properties etc. are primary or intrinsic
stimuli, while marketing communications developed to influence
consumer behaviour are secondary or extrinsic stimuli.
Expectations
People generally see what they expect to see and this expectation is
based on familiarity and previous experience. Consumers often perceive
products and product attributes according to their expectations. If a
consumer has been expecting a new soft drink to have bitter aftertaste
because the friends said so, probably it would taste bitter.
Selective exposure
Exposure occurs when consumer’s senses are activated by stimulus.
Consumers are attentive to stimuli that are relevant, pleasant or towards
which they may be sympathetic and ignore unpleasant and painful ones.
For instance, a consumer who is contemplating the purchase of a scanner
is more likely to look for scanner ads and tobacco users avoid messages
that like it with cancer and take note of those few that deny any
relationship.
Selective attention
Attention is the momentary focusing of a consumers cognitive capacity
on a particular stimulus. Consumers have increased awareness of stimuli
that are relevant to their felt needs or interests and decreased awareness
of irrelevant stimuli. They would readily notice ads of products that they
need or want.
Adaptation
Adaptation refers to gradual adjustment to stimuli to which consumers
are exposed for prolonged periods. Because of adaptation, consumers do
not notice the stimuli to which they have become adjusted.
Perceptual vigilance and defense
Even when consumers are exposed to stimuli they do not want to see or
hear, they unconsciously ignore such undesirable stimuli. Perceptual
defense is more likely in anxiety-producing situations. Because of this
reason, unpleasant, damaging or threatening stimuli have less of a
chance to be perceived compared to neutral stimuli at the same level of
exposure.
Perceptual blocking
Consumers are exposed to innumerable stimuli in a typical day. They
protect themselves from being overwhelmed and overburdened by
blocking such numerous stimuli from their conscious awareness. For
instance consumers screen out enormous amounts of TV advertising by
‘tuning out.’
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
18739
QUESTION_TEXT
What are the consumer behavior principles? How they are helpful in
marketing?
SCHEME OF
EVALUATION
Consumer behavior principles are applied in many areas of marketing
they are;
1.Analyzing market opportunity: Consumer behavior study helps in
identifying the unfulfilled needs and wants of consumers. This requires
examining the trends and conditions operating in the marketplace,
consumers’ lifestyles, income levels and emerging influences This may
reveal unsatisfied needs and wants. (4 marks)
2.Selecting target market: A review of market opportunities often helps
in identifying distinct consumer segments with very distinct and unique
wants and needs. Identifying these groups, learning how they behave and
how they make purchase decisions enables the marketer to design and
market products or services particularly suited to their wants and needs.
(3 marks)
3.Marketing mix decisions: Once unsatisfied needs and wants are
identified the marketer has to determine the right mix of product, price,
distribution and promotion. Here too consumer behavior study is very
helpful in finding answers to many perplexing questions. (3 marks)
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
72728
QUESTION_TEXT
Explain the factors that distort individual perception with suitable
examples.
SCHEME OF
EVALUATION
Factors that distort individual perception are
1. Physical appearances
2. Stereotypes
3. Irrelevant stimuli
4. First impressions
5. Jumping to conclusions
6. Halo effect
(10 Marks)
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
72731
QUESTION_TEXT
Explain the various sources of information available to the consumer in
making a purchase decisions.
SCHEME OF
EVALUATION
The various sources of information available to the consumer in making a
purchase decisions are:
The first source pertains to internal information and the remaining four pertain
to external information:
• Long-term memory – Source of internal information which is stored in the
long-term memory based on earlier searched, personal experiences and low
involvement learning.
• Personal source – These include family, friends, neighbours and peer
groups.
• Independent sources – Include newspapers, magazines, journals,
consumer reports and government agencies.
• Marketer controlled sources – These include advertising, sales personnel,
direct mail etc.
• Experiential sources – This refers to inspection of products or product
trial. It is the consumer's prerogative to decide how many and which sources
of information to use
Internet as a source of information
(Each component to be explained in at least 3 sentences.
(10 Marks)
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
125775
QUESTION_TEXT
Write a note on McGuire's classification of motives.
Cognitive preservation of motives
Cognitive growth motives
SCHEME OF EVALUATION
Affective preservation motives
Affective growth motives