CUSTOMER_CODE
SMUDE
DIVISION_CODE
SMUDE
EVENT_CODE
JAN2016
ASSESSMENT_CODE MB0046_JAN2016
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
9786
QUESTION_TEXT
Explain the different strategies of channel management.
SCHEME OF
EVALUATION
The channel management decisions involve selecting, training,
motivating, evaluating and modifying channel arrangements.
1.Selecting channel members:
The ability to recruit and use intermediaries varies from producer to
producer. The elements that managers examine as they define channel
strategies can be grouped into market factors, product factors and
producer factors. This includes analysing and understanding the target
market, lifecycle of the product, product value, size and weight,
consumer perception and company objectives as well as company
resources and desire to control.
2.Training channel members:
In order to manage channel members, an important task is to train the
channel members. The training programmes can be on selling skills,
business processes, and other soft skills required to serve the end
customer. It should cover customer contact and interaction management,
selling skills, relationship building skills and business development
skills.
3.Motivating channel members:
Channel motivation involves developing compensation management
programmes and also giving non-fringe benefits for building long-term
loyalty. The idea of developing a channel motivational programme is to
build their capability to reform better and take additional responsibility.
4.Evaluating channel members:
The next task is to evaluate the performance of channel members on a
periodic basis. The marketing manager may set up standard evaluation
benchmarks like sales quota, market share, average inventory carrying
level, customer response and delivery time, etc. it should ensure that the
intermediaries are able to achieve the economic order quantity in their
transactions with the company.
5.Modifying channel arrangements:
Management of distribution channel is a continuous and dynamic
process. Marketing manger should follow certain approach to keep their
distribution strategy perfect at any point of time. Like ,he should
research customers value perception, compare and contrast the existing
distribution system, find out the service output gaps, developing a new
channel solution, implement and monitor modified channel. (2 marks
each)
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
9788
QUESTION_TEXT
Explain the marketing research process
1.Identify the marketing problem (2 Marks)
2.Developing marketing research plan (2 Marks)
3.Designing marketing research strategy (2 Marks)
SCHEME OF EVALUATION
4.Collection of data (2 Marks)
5.Analysis of collected data (1 Mark)
6.Preparation of report (1 Mark)
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
9789
QUESTION_TEXT
Explain the Maslow’s need Hierarchy Theory
1.Physiological needs (2 Marks)
2.Safety needs (2 Marks)
SCHEME OF EVALUATION 3.Social needs (2 Marks)
4.Esteem needs (2 Marks)
5.Self-actualization needs (2 Marks)
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
73197
QUESTION_TEXT
Briefly explain the tools and techniques of sales and
promotion.
SCHEME OF
EVALUATION
Sales promotions directed at consumers
3.5M
Sales promotions directed at trade partners 3.5M
Sales promotions directed at sales force 3M
with explanation
QUESTION_T
DESCRIPTIVE_QUESTION
YPE
QUESTION_ID 126172
QUESTION_T
Differentiate between selling and marketing concepts.
EXT
Differences Between Selling and Marketing Concepts
SCHEME OF
EVALUATION
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
126175
QUESTION_TEXT
Explain the steps in business buying process.
SCHEME OF
EVALUATION
1. Step 1: Recognising an organisational need
Organisational purchasing starts with the identification of demand
for products and services. While there are different kinds of needs,
most needs arise out of situations related to the operation of the
business. Need recognition is not always as complicated or involved as
it is in new task and modified re-buy decisions. It becomes a routine,
particularly in a straight re-buy situation. A large construction company
may negotiate a contract with a steel beam supplier to replenish
inventory on demand. Purchase orders are automatically written and
sent to the supplier when the inventory reaches a pre-specified mark.
Such routine buying situations offer the best opportunities to use
computer based database management systems.
2. Step 2: Determining product specifications
Subsequent to identification of the responsibility centre, the
purchase manager also specifies exact product and service descriptions
for procurement. It is also necessary to estimate the exact quantity
required and the period in which these quantities need to be delivered.
An estimate of other associate services required for the purchase of
specified goods and services is also necessary.
3. Step 3: Identifying suppliers
If there are many suppliers on the list, a screening procedure that
bases its decisions on certain predefined criteria is needed. The
information gathered enables the organisational buyer to quickly look
for suppliers who can meet minimum requirements. These
requirements might be delivery time, capacity to meet the buyer’s
quantity needs, and breadth of the product line. Failure to meet a
minimum requirement usually means that a supplier will not be
included in the list of acceptable suppliers, no matter how well that
supplier stacks up on other criteria. Because of a good past service to
the company, a purchasing agent may, for example, put a supplier on
the list though he/she does not meet the minimum requirements.
At this stage, the buying centres search for different suppliers and
try to find out their qualification or eligibility by collecting information
on their performance and capability from various sources. It then
notifies or requests for proposals from possible suppliers and sends
these proposals for evaluation to the standing committee on purchase.
4. Step 4: Information search and supplier evaluation
A buying centre may have to evaluate several product types for a
particular use before suppliers can be selected. If products are
complicated, technically trained people sort through the alternatives to
recommend those that meet previously developed product
specifications. For instance, many companies deal with the rapidly
changing technology of computer products (both hardware and
software) by creating task forces that keep themselves abreast of
current product developments. A task force recommends product types
that are suitable for particular applications.
5. Step 5: Negotiation of purchase orders
An organisational buyer may negotiate a contractual agreement
with a supplier. An agreement of this kind can cover a single purchase
of a product or repurchase of the product over a period of time.
Contracts are commonly used in straight re-buy situations. The buying
centre of a large supermarket chain enters into contracts for purchases
of frequently sold products like soap, toothpaste, and peanut butter for
a year or more. Buying centres negotiate terms of payment, credit, and
delivery during this stage to arrive at a specified order routine, which
the supplier is required to honour under the negotiated agreement.
Normally a term of contract is signed between both the parties.
6. Step 6: Evaluation of supplier performance
Organisational buyers usually want to know how well suppliers
comply with the purchase agreement. Thus, an important part of
organisational purchasing is evaluation of suppliers after purchase. This
task is typically assigned to the purchasing department. The criteria
used for supplier selection become the performance standards for this
evaluation.
Information is collected on the performance of the product or
service in use. A questionnaire may be sent to users of the product to
obtain their input. Other technical measures of performance may also be
devised. A manufacturer who purchases aerosol packaging, for instance,
may select a sample of the packaging and test it for pressure and
evenness of application. The buying centre develops a provision for
feedback and evaluation on a continuous basis. It also develops systems
and procedures to have a regular communication with the suppliers