CUSTOMER_CODE
SMUDE
DIVISION_CODE
SMUDE
EVENT_CODE
JAN2016
ASSESSMENT_CODE MB0046_JAN2016
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
73191
QUESTION_TEXT
Briefly discuss the different types of agent wholesalers.
SCHEME OF
EVALUATION
Agent wholesalers are primarily involved in the buying and selling of
goods and services. They typically negotiate sales as representatives of
other firms and do not take title to merchandise. The different types of
agents are: (Each point carries 2 marks)
1. Manufacturers’ agents: They are independent firms which typically
handle non-competing lines of a variety of manufacturers and are often
used in place of a manufacturers own sale force. New companies use
manufacturer’s agents when they have neither the expertise nor the
resources to develop their own sales force. Established firms rely upon
manufacturing and prefer to subcontract their distribution activities or
when they wish to enter in new markets.
2. Brokers: They are commonly used in the real estate industry where
they negotiate the buying and selling of property as well as negotiate its
rental and leasing. They are the middlemen whose primary activity is to
establish contact between the buyer and the seller. They negotiate and
facilitate sales and are compensated by a fee or commission. They do
not undertake title of merchandise.
3. Commission merchants: They are sometimes called factors. They
receive products on consignment basis and sell them on a commission
basis. They typically operate on an autonomous basis. They are most
often used in distribution channels for farm produce, lumber products
etc. where the manufacturers identity is relatively unimportant to the
buyer.
4. Selling agents: They differ from manufacturer’s agents and brokers in
that they normally carry a supplier’s entire product line. Unlike
manufacturer’s agents and brokers, they usually set prices and terms of
sale and also undertake promotional activities. Thus selling agents in
effect act as the manufacturers sale force. As with other agent
wholesalers, selling agents do not take title or possession of the goods
they handle.
5. Auction companies: They invite buyers and sellers to a single physical
location, either at the seller’s location or at the auction company’s site.
In addition to bringing buyers and sellers together, auction firms
promote the goods they handle and actively negotiate the sale of those
goods. These wholesalers participate to a less degree in the other
marketing flows, except for ownership. Their participation in a channel
is typically limited to facilitating a transfer of ownership. These firms
also play a key role in the marketing of some commodities such as
tobacco.
QUESTION_T
DESCRIPTIVE_QUESTION
YPE
QUESTION_ID 126172
QUESTION_T
Differentiate between selling and marketing concepts.
EXT
SCHEME OF
Differences Between Selling and Marketing Concepts
EVALUATION
QUESTION_TYPE DESCRIPTIVE_QUESTION
QUESTION_ID
126176
QUESTION_TEXT Discuss the bases of market segmentation.
Bases for Segmenting Consumer Markets
SCHEME OF
EVALUATION
Marketers use more than one base to segment the market and identify
the target market. The method of segmentation will vary in a business-
to-business market than in individual consumer markets. Following are
the common bases of marketing segmentation.
7.6.1 Geographic segmentation
This is the simplest form of segmenting the market. Here, the marketer
divides the target market into different geographical units such as
nations, states, and regions. He/she may decide to operate in one or
more than one geographical areas. Segmentation of customers based
on geographic factors is as follows:
Region – Segmentation by continent/country/state/district/city.
Size – Segmentation on the basis of size of a metropolitan area as per its
population.
Population density – Segmentation on the basis of population density such
as urban/sub-urban/rural, etc.
Climate – Segmentation as per climatic condition or weather.
7.6.2 Demographic segmentation
While it is easy to find and group people living in one geographic
location, there may be a large variation in their demographic
characteristics. Since consumer needs, wants, and demand patters are
directly linked with demographical variables, this method of
segmentation is popular among marketers. Segmentation of customers
based on demographic factors is as follows:
Age (dominant factor) – The age of a person is one of the basis of
segmentation. For example, the product segmentation is done by Titan
according to different age groups of people. Titan designed a sub-brand,
Fastrack. These watches are basically for young, vibrant, and cool
outgoing young generation. While for older person and professional it
has created the steel series watches, Sonata.
Income (dominant factor) – Income level of a person is also a basis of
segmentation. For example, Titan watches offered Aurum and Royale in
the gold/jewellery watch collection with the price ranging between
` 20000 to `1 lakh for upper class segment.
Titan offered Exacta range in stainless steel, aimed at resisting the
rigours of daily life for the middle segment. This range offers 100
models with the price ranging between ` 500 to ` 700.
Titan presented the Sonata range for the third segment. The price
range was between ` 350 to ` 500.
Purchasing power (dominant factor) – Purchasing power of the buyer is
one of the significant basis for segmentation. Examples of various car
segments on the basis of purchasing power are as follows:
Budget car segment – This segment is the biggest in the Indian market.
The entry level of this segment begins from ` 1.5 to 3 lakh. Maruti 800
and Omni are the leading players in these segments. The viewpoint of
this segment has changed with the launch of Tata Nano with a price
range of 1 lakh. Small car segment is another name for this segment. In
Indian market, there is highest competition in this segment.
Compact car segment – This segment lies among budget car and family
car. The price range preference is between ` 3 to 4.5 lakh. Maruti Zen,
Fiat Uno, Tata Indica, and Santro is some of the leading players of this
segment.
Family car segment – The buyer’s purchasing power in this segment is
rather higher than the budget and compact car segment. The price
range of this segment is between ` 4.5 to 6 lakh. Maruti Esteem,
Daewoo Cielo, and HM Contessa comes under this segment. In India,
cars that are sold under the head ‘budget car’ and ‘compact car’ do not
meet their purpose, especially in terms of space shifts to ‘family car
segment’.
Premium car segment – The purchaser who wants a true world class
luxury car comes under this segment. Price range of this segment is
between ` 6 to 8 lakh. A few main cars of this segment are Ford Escort,
Honda City, Mitsubishi Lancer, Audi 1800, Opel Astral, etc.
Super luxury saloon segment – This segment consists of buyers who look
for a real, super premium car. Some of the major cars of this segment
are Mercedes Benz E229, E-250, Rover Montego, Audi 6, BMW. In Indian
market, this is a small segment.
1. Occupation
2. Gender - Goods may be segmented for male and female
3.
4.
5.
6.
7.
Family size
Family life cycle
Nationality
Religion
Education - Primary, high school, secondary, college, and
universities
Psychographic segmentation
Other than the demographic methods of market segmentation,
segmentation on the basis of psychography is another popular method
among marketers. Psychographics is the study of lifestyle of individuals.
It involves developing sub-group identification on the basis of
psychographical characteristics. Lifestyle is a way of living. It reflects a
person’s living as a combination of his actions, interests, and opinions.
Behavioural segmentation
In the case of behavioural segmentation, the market is divided on the
basis of purchase decision and product or brand usage made by
consumers.
Dividing the market on the basis of variables such as use occasion,
benefits sought user status, usage rate, loyalty status, buyer readiness
stage, and attitude is termed as behaviouristic segmentation. Buyers can
be identified according to the use occasion when they develop a need and
purchase or use a product
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
126182
QUESTION_TEXT
Explain the functions performed by marketing channels.
1.
2.
3.
4.
5.
SCHEME OF EVALUATION
6.
7.
8.
9.
10.
Buying (1 Mark)
Carrying inventory (1 Mark)
Selling (1 Mark)
Transportations (1 Mark)
Financing (1 Mark)
Financing (1 Mark)
Promoting (1 Mark)
Negotiations (1 Mark)
Marketing research (1 Mark)
Servicing (1 Mark)
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
126184
QUESTION_TEXT
What is retailing? Briefly explain the most important types of retailing?
Retailing is the final connection in the marketing channel that brings goods
from manufacturers to consumers. In other words, retailing is the
combination of activities involved in selling or renting consumer goods and
services directly to ultimate consumers for their personal or household use.
Types
Mom
SCHEME OF
EVALUATION
and pop stores and kirana stores
Department stores
Discount
stores
Category
killers
Specialty
stores
Superstores and
hyper markets
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
126185
QUESTION_TEXT
What are the differences between Macro and Micro Environment?
Macro
Last in size
Macro environment cannot
SCHEME OF EVALUATION be controlled
It is very unpredictable &
highly uncertain
Very complex in nature
Micro
Small in size
Can be controlled
Not very unpredictable &
low in uncertainty
It simpler
It includes political, social,
It includes customer, publics,
cultural, technological,
competitions, suppliers and
demographic, economic, and
intermediaries
natural environment