- JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATION – APRIL 2014
BBM – II SEMESTER
PRINCIPLES OF MARKETING
Duration: 3 Hours Max. Marks: 100
SECTION – A
- Answer ALL the following questions. Each carries 2 marks. (10 x2 = 20)
- Differentiate between advertising and sales promotion.
- Give two examples of Co-branding.
- Distinguish between length and depth of product mix.
- What do you mean by Horizontal Marketing Systems?
- What is Brand Equity?
- What is ‘kiosk marketing’?
- What are the functions of packaging?
- What is ‘price skimming’?
- What are the steps involved in the consumer buying process?
- Explain the concept of ‘social media marketing’.
SECTION – B
- Answer any FOUR Each carries 5 marks. (4 x 5 = 20)
- Explain PLC (Product Life Cycle) with the help of a diagram.
- Explain the different levels of products using a diagram.
- What are the major product line decisions?
- Explain briefly the functions and flows in a marketing channel.
- What are the advantages and disadvantages of franchising?
- Discuss three Brands that failed due to poor integration of the marketing mix elements.
SECTION – C
- Answer any THREE Each carries 15 marks (3x 15=45)
- Explain the process of ‘New product development’ in detail.
- Discuss the importance of promotion mix in marketing. Explain its components.
- What are the different methods of price determination?
- Company ABC has a dominant share in the Indian snack market and also owns many successful brands. The company has decided to enter the market of frozen foods, as this is quite successful in the West. You have been appointed as the marketing head of this company. Devise a marketing plan for the same.
- Discuss how market segmentation, target marketing and positioning are interrelated. Give examples.
SECTION – D
- Compulsory Question – Case study (15 marks)
22. Tupperware, Quantum and Direct Educational Technologies India
Direct selling companies have grown both in size and in number in India, with around 20 of them becoming members of the India Direct Selling Association (IDSA). The number of sales people increased to 16.73 lakhs. However, the companies faced the problem of people joining, but not engaging themselves actively, or even opting out of business. Of the 16.73 lakhs, only 8.75 are active sales people, i.e., people who buy or sell at least once in two months. The dropout rate is quite high for Tupperware, as for the rest of the industry. A lot of people leave and then rejoin after some time. While the problem may be huge for some players, it is not so for all. Amway India has a dropout of 0.5 per cent and an active sales force of 4.5 lakhs people. People leave the profession in around one and a half years.
At present there are about 400 types of products with over 1,700 variants being sold by these companies. The latest to join the list is insurance. While most companies sell cosmetics, personal hygiene and home care products and supplements, there are some that sell semi-precious jewellery (Quantum International Ltd), educational products and multimedia (Direct Educational Technologies India Pvt Ltd). While most players work on the multi-level sales method, whereby their sales people can add on any number of people who in turn take on more, there are some players such as Tupperware who work on a single level sales method. Tupperware works in single level, two-tier sales method. A person joins Tupperware as a Consultant and on doing a certain level of business, graduates to be a manager. Tupperware restricts the number of managers to 2,000-2,500 in the country.
The single level method may not reap large benefits for the sales person. In the multi-level method, there is no restriction on the number of people one can make to join. An infinite number of sales people can be added and thus, one keeps moving up the chain.
The kind of success these companies have seen in India is only the tip of the iceberg. Mexico, which has a similar socio-economic level and a tenth of India’s population, has a turnover of over Rs 15,000 crore. The potential for the direct selling Industry in India is huge. However, for the sector to grow faster these companies have been seeking a specific legislation. The legislation would prevent fraudulent companies from conducting a business in the country and also help in channelizing growth.
Questions:
- Enumerate the success that Tupperware has enjoyed in India through direct marketing.
- Can e-mail and video devices be used as an aid in employing the techniques of Public Relations in Tupperware? Support your answer with justifications for your stand.
- Discuss the recent trends in promotional mix.
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