Hey there, are you preparing for the Gauhati University BCom 2nd/5th Semester Examination and looking for the Gauhati University Principles of Marketing Solved Question Paper 2023? If yes then you have come to the right place. In this post, we have discussed the complete Solved Question Paper which you can read below.
The objective of the Gauhati University Principles of Marketing FYUGP course is that students will be able to analyze consumer behavior, develop marketing strategies, utilize marketing tools and techniques, and evaluate marketing campaigns to target and engage customers in diverse market environments effectively.
GU B.Com 2nd/5th Sem Principles of Marketing Solved Question Paper 2023
4 (Sem-5/CBCS) COM HC 1 (POM)
2023
COMMERCE
(Honours Core)
Paper: COM-HC-5016
(Principles of Marketing)
Full Marks: 80
Time: Three hours
The figures in the margin indicate full marks for the questions.
Answer either in English or in Assamese.
1. Answer the following as directed: 1×10=10
(i) The starting point of any marketing activity is the
(a) human needs and wants
(b) basic human needs
(c) the biological condition of human beings
(d) All of the above
(Choose the correct answer)
Ans:- (a) human needs and wants
(ii) Who is the father of modern marketing?
Ans:- Philip Kotler is often referred to as the father of modern marketing
(iii) Which of the following is a threat posed by the marketing environment in India?
(a) Curtailment of and disinvestments in the Public sector
(b) Liberalisation of Industrial licensing
(c) Survival of the fittest rule
(d) Removal of subsidies
(Choose the correct answer)
Ans:- (b) Liberalisation of Industrial licensing
(iv) Which of the following is useful for marketing segmentation?
(a) Prospect identification
(b) To know the customer’s tastes and preferences
(c) To target current clients
(d) All of the above
(Choose the correct answer)
Ans:- (d) All of the above
(v) Which one of the following is not an element of demographic segmentation?
(a) Family size
(b) Population density
(c) Income
(d) Religion
Ans:- (d) Religion
(vi) ‘Assam Tea’ stands for______positioning.
(Quality/Geographical area)
(Fill in the blank with the correct alternative)
Ans:- Geographical area.
(vii) ‘Mobile Handset’ is an example of perishable goods.
(Write True or False)
Ans:- False.
(viii) Which one of the following brands is owned and developed by producers?
(a) Individual brands
(b) Family brands
(c) Manufacturers brands
(d) None of these
(Choose the correct answer)
Ans:- (c) Manufacturers brands
(ix) At the maturity stage sales continue to increase at an increasing rate.
(Write True or False)
Ans:- False.
(x) Promotion mix is an important element of________.
(a) Sales promotion
(b) Marketing mix
(c) Personal selling
(d) All of the above
(Fill in the blank with the appropriate alternative)
Ans:- (b) Marketing mix
2. Answer the following questions: 2×5=10
(i) State two distinctions between marketing and selling.
Ans:-
| Aspect | Marketing | Selling |
| Focus | Customer needs and wants | The product or service being offered |
| Purpose | Creating awareness and interest | Closing the sale and generating revenue |
| Scope | Broader and long-term | More immediate and short-term |
| Communication | One-to-many (mass communication) | One-to-one (personal communication) |
| Activities | Market research, branding, advertising | Persuasion, negotiation, product demonstration |
(ii) What is product positioning?
Ans:- Product positioning is a marketing strategy that focuses on how a product or service is perceived by consumers relative to its competitors in the market. It involves creating a distinct image and identity for the product in the minds of the target audience.
(iii) What is the product line?
Ans:- A product line is a group of related products offered by a company. These products often share similar characteristics, target similar customer segments, and are marketed together. For example, a company that sells smartphones may have a product line that includes different models with varying features and price points.
(iv) What is personal selling?
Ans:- Personal selling is a marketing strategy in which a salesperson or representative directly interacts with potential customers to persuade them to purchase a product or service. It involves one-on-one communication, either face-to-face or through virtual means, to build relationships, understand customer needs, and provide tailored solutions.
(v) What is an advertising agency?
Ans:- An advertising agency is a company that specializes in creating, planning, and executing advertising campaigns for businesses and organizations. These agencies typically offer a range of services, including market research, creative design, media planning and buying, and campaign management.
3. Answer any four of the following:5×4=20
(i) Importance of product as a component of marketing mix.
Ans:- Following are the Importance of product as a component of the marketing mix
1. Satisfying Customer Needs: Products or services are developed to meet specific customer needs or wants. Understanding customer preferences and developing products accordingly helps in satisfying consumer demands effectively.
2. Differentiation: Products play a significant role in differentiating a company’s offerings from those of competitors. Unique features, quality, branding, and packaging can all contribute to setting a product apart in the market.
3. Value Creation: A well-designed product provides value to customers, which can lead to customer satisfaction, loyalty, and ultimately, profitability for the company. Value creation through product innovation and improvement is essential for long-term success.
4. Brand Image: Products contribute to the overall brand image of a company. Consistently delivering high-quality products can enhance brand reputation and create a positive perception among consumers.
5. Market Positioning: Products determine how a company is positioned in the market relative to its competitors. Through effective product positioning, companies can target specific market segments and establish a competitive advantage.
6. Revenue Generation: Products are the primary revenue-generating entities for businesses. Pricing strategies, product features, and market demand all influence the revenue potential of a product.
7. Customer Loyalty and Repeat Business: Offering superior products can foster customer loyalty and encourage repeat purchases. A positive product experience can lead to long-term relationships with customers, reducing the need for continuous marketing efforts to acquire new customers.
8. Adaptation to Market Changes: Products must evolve over time to adapt to changing market trends, technological advancements, and customer preferences. Continuous product innovation and development are essential for staying competitive in dynamic markets.
(ii) Advantages of product branding.
Ans: The following are the Advantages of product branding.
Advantages of Product Branding:
1. Differentiation: Branding helps differentiate products from competitors in the market. Strong branding creates a unique identity that sets a product apart and makes it easily recognizable.
2. Customer Loyalty: A strong brand creates emotional connections with customers, fostering loyalty and repeat purchases. Customers often choose branded products they trust over generic alternatives.
3. Perceived Value: Branding can enhance the perceived value of a product. Consumers may be willing to pay a premium for branded products due to the associated quality, reputation, and status.
4. Brand Extensions: Successful branding allows for the extension of a brand into new product categories or markets. Established brand equity can facilitate the launch of new products under the same brand umbrella.
5. Competitive Advantage: Strong branding can serve as a barrier to entry for competitors. Building brand equity over time can make it difficult for new entrants to compete solely on price.
(ii) Reasons of product failure.
Ans:- Reasons of Product Failure:
1. Poor Market Fit: Products may fail if they do not adequately address customer needs or fail to resonate with the target market.
2. Inadequate Research: Insufficient market research and testing can lead to product failures. Lack of understanding of customer preferences, market trends, or competitive dynamics can result in misaligned products.
3. Quality Issues: Products that suffer from quality defects, poor performance, or reliability issues are likely to fail in the market due to negative customer experiences and word-of-mouth.
4. Weak Differentiation: Products that lack unique features, benefits, or branding may struggle to stand out in a crowded market, leading to failure.
5. Mismanaged Launch: Poorly executed product launches, including ineffective marketing campaigns, distribution challenges, or pricing errors, can hinder product success.
(iv) Advantages and disadvantages of E-tailing.
Ans:- Advantages and Disadvantages of E-tailing:
Advantages:
1. Global Reach: E-tailing allows businesses to reach customers beyond geographical boundaries, expanding their potential customer base.
2. Convenience: Customers can shop anytime, anywhere, eliminating the need to visit physical stores. This convenience appeals to busy consumers.
3. Lower Overheads: E-tailers often have lower operating costs compared to brick-and-mortar stores, leading to potentially lower prices for customers.
4. Data Analytics: E-tailing platforms can collect and analyze customer data to personalize marketing efforts and improve the shopping experience.
5. 24/7 Availability: Online stores are accessible 24/7, allowing customers to shop at their convenience, regardless of time zones or holidays.
Disadvantages:
1. Lack of Tangible Experience: Customers cannot physically inspect products before purchase, leading to concerns about quality, fit, or appearance.
2. Shipping Costs and Delays: Shipping costs and delivery times can impact the overall cost and convenience of online shopping, especially for urgent or bulky items.
3. Security Concerns: Online transactions may raise security and privacy concerns for customers, particularly regarding payment information and personal data.
4. Return and Exchange Challenges: Returning or exchanging products purchased online can be cumbersome and time-consuming, potentially dissuading customers from making future purchases.
5. Digital Divide: Not all consumers have access to the internet or are comfortable with online shopping, limiting the potential customer base for e-tailers.
(v) Merits and demerits of product diversification.
Ans:- Merits and Demerits of Product Diversification:
Merits:
1. Risk Reduction: Diversifying products across different markets or industries can help reduce risk by spreading potential losses. A company with a diversified product portfolio is less vulnerable to downturns in a single market or industry.
2. Revenue Growth: Diversification can lead to revenue growth by tapping into new markets, reaching new customer segments, or offering complementary products. This can help offset stagnation or decline in existing markets.
3. Synergy Opportunities: Product diversification can create opportunities for synergies between different product lines or businesses within a company. Cross-selling, shared resources, and economies of scale may be realized.
4. Competitive Advantage: Diversification can enhance a company’s competitive advantage by expanding its capabilities, market presence, and brand visibility.
5. Hedging Against Market Fluctuations: Diversification can help mitigate the impact of market fluctuations, economic cycles, or regulatory changes affecting specific industries or markets.
Demerits:
1. Resource Allocation Challenges: Managing a diverse product portfolio requires significant resources in terms of capital, personnel, and management attention. Resource allocation decisions may become complex and require careful prioritization.
2. Execution Risks: Successfully managing a diversified portfolio requires expertise across multiple industries or markets. Poor execution or integration of diversified products can lead to inefficiencies, conflicts, or failure.
3. Brand Dilution: Over-diversification can dilute a company’s brand identity and confuse customers about its core competencies or value proposition. Maintaining a clear brand image becomes challenging when offering a wide range of unrelated products.
4. Cannibalization: Introducing new products may cannibalize sales of existing products within the same company, leading to internal competition and erosion of market share.
5. Complexity and Coordination Issues: Diversification increases organizational complexity and coordination challenges, particularly in large companies with multiple product lines or business units. Aligning strategies, cultures, and operations across diverse entities can be difficult.
(vi) Essential elements of good branding.
Ans:- Essential Elements of Good Branding:
1. Brand Identity: Establish a clear and consistent brand identity that reflects the company’s values, mission, and personality. This includes elements such as logos, colors, typography, and messaging.
2. Brand Positioning: Determine the unique value proposition of the brand and position it effectively in the minds of consumers relative to competitors. Identify target market segments and tailor branding efforts to resonate with their needs and preferences.
3. Brand Awareness: Build brand awareness through strategic marketing efforts across various channels, including advertising, social media, public relations, and experiential marketing. Consistent visibility helps reinforce brand recall and recognition.
4. Brand Equity: Develop and nurture brand equity by delivering consistent quality, reliability, and customer experiences. Positive brand associations and emotional connections with consumers enhance brand loyalty and willingness to pay a premium.
5. Brand Consistency: Maintain consistency in branding elements and messaging across all touchpoints, including products, packaging, advertising, customer service, and digital platforms. Consistency builds trust and reinforces brand authenticity.
6. Brand Experience: Create memorable and positive brand experiences at every interaction point with customers. Focus on delivering exceptional customer service, engaging storytelling, and meaningful brand interactions that leave a lasting impression.
7. Brand Extension: Strategically extend the brand into new product categories or markets while ensuring alignment with the core brand values and image. Leverage existing brand equity to enhance the success of new offerings.
8. Brand Monitoring and Adaptation: Continuously monitor brand performance, consumer feedback, market trends, and competitive landscape. Adapt branding strategies and tactics accordingly to stay relevant and responsive to changing consumer preferences and market dynamics.
4. Answer the questions from the following: (any four) 10×4=40
(a) Outline the major functions of marketing.
Ans:- The major functions of marketing can be outlined as follows:
1. Market Research: Gathering and analyzing data about consumers, competitors, and market trends to understand customer needs, preferences, and behaviors. Market research informs decision-making across all marketing functions.
2. Product Development: Creating and innovating products or services that meet the identified needs and desires of target customers. This involves designing features, determining pricing, and packaging products to appeal to the target market.
3. Branding and Positioning: Developing a distinct brand identity and positioning strategy to differentiate products or services in the marketplace. This includes creating brand messaging, logos, and visual elements that communicate the brand’s value and appeal to the target audience.
4. Advertising and Promotion: Planning and executing promotional campaigns to raise awareness, generate interest, and drive sales of products or services. This includes advertising through various channels such as television, radio, print, digital, and social media, as well as other promotional tactics like sales promotions and sponsorships.
5. Distribution and Channel Management: Developing strategies for distributing products or services to reach target customers efficiently and effectively. This involves selecting and managing distribution channels, such as wholesalers, retailers, or direct-to-consumer sales, and ensuring proper inventory management and logistics.
6. Pricing Strategy: Determining the optimal pricing strategy for products or services based on factors such as production costs, competitor pricing, and perceived value by customers. Pricing decisions can influence consumer perceptions, demand levels, and overall profitability.
7. Sales and Customer Relationship Management: Implementing strategies to generate sales and build long-term relationships with customers. This includes salesforce management, customer service, and CRM systems to track customer interactions and preferences, and to personalize marketing efforts.
8. Market Segmentation and Targeting: Identifying distinct market segments based on demographic, psychographic, or behavioral characteristics, and targeting specific segments with tailored marketing messages and offers. This allows companies to focus their resources on the most profitable customer groups.
9. Marketing Analytics and Performance Measurement: Monitoring and evaluating the effectiveness of marketing activities and campaigns through data analysis and performance metrics. This includes tracking key performance indicators (KPIs), conducting market experiments, and using insights to optimize future marketing efforts.
10. Ethical and Social Responsibility: Ensuring that marketing activities are conducted ethically and responsibly, considering the impact on consumers, society, and the environment. This includes compliance with regulations, transparency in advertising, and initiatives to support social causes or sustainability efforts.
(b) Discuss the growth and future of marketing in India.[ GU 2015 2017]
Ans:- The growth and future of marketing in India have been shaped by various factors, including economic development, technological advancements, changing consumer behavior, and evolving industry dynamics. Here’s an overview:
1. Economic Growth: India’s steady economic growth has led to an expanding middle class with increased purchasing power. This has created a significant consumer market for various products and services, making it an attractive destination for businesses.
2. Digital Transformation: India has experienced a digital revolution, with a massive increase in internet and smartphone penetration. This has opened up new avenues for marketing, including digital advertising, e-commerce, and social media marketing.
3. E-commerce Boom: The rise of e-commerce platforms like Flipkart, Amazon, and numerous homegrown brands has transformed the retail landscape. This shift has required companies to adapt their marketing strategies to reach consumers online.
4. Rise of Social Media: Indians are active users of social media platforms like Facebook, Instagram, and WhatsApp. Social media marketing has become a prominent channel for reaching and engaging with consumers.
5. Mobile Marketing: With the proliferation of smartphones, mobile marketing, including mobile apps and SMS marketing, has gained prominence. India’s mobile-first approach has made mobile marketing a crucial component of advertising strategies.
6. Content Marketing: Content marketing, including blogs, videos, and influencer marketing, has seen significant growth. Brands are focusing on creating valuable content to engage with consumers and build brand loyalty.
7. Personalization: Marketers are increasingly using data analytics and AI to personalize marketing messages. Personalization enhances customer experiences and increases the effectiveness of marketing campaigns.
8. Rural Market Expansion: Companies are recognizing the potential of rural markets and are tailoring marketing strategies to reach consumers in these areas. Rural India represents a vast untapped market.
9. Green and Sustainable Marketing: There’s growing awareness and demand for sustainable and environmentally friendly products. Brands that embrace green marketing and sustainability practices are gaining traction.
10. Globalization: Many Indian companies are expanding globally, which requires them to adopt international marketing strategies and adapt to different markets.
11. Regulatory Changes: Marketing practices are influenced by regulatory changes, including data privacy laws and advertising standards. Marketers must stay compliant with evolving regulations.
The following are some potential trends:
1. AI and Automation: Greater use of artificial intelligence and automation for data analysis, chatbots, and personalized marketing.
2. Voice Search: As voice-activated devices become more popular, voice search optimization will gain importance in SEO and marketing.
3. Video Marketing: The popularity of video content will continue to grow, with brands focusing on video marketing strategies.
4. Augmented Reality (AR) and Virtual Reality (VR): These technologies will find applications in marketing, such as virtual shopping experiences and AR advertising.
5. Sustainability Marketing: Sustainability will remain a key focus, with more brands adopting eco-friendly practices and communicating them in their marketing efforts.
6. Inclusive Marketing: Inclusivity and diversity will play a more significant role in marketing campaigns, reflecting the diverse Indian population.
7. Data Privacy: With increasing concerns about data privacy, companies will need to be transparent and responsible in their data collection and usage practices.
The growth and future of marketing in India are closely tied to the country’s evolving consumer landscape and technological advancements. Companies that adapt to these changes and leverage emerging marketing trends are likely to thrive in this dynamic market.
(c) Explain the consumer’s buying decision process.
Ans:- The consumer buying process typically consists of several stages that individuals go through when making a purchase decision. These stages can vary slightly depending on the complexity of the purchase, but generally include the following:
1. Problem Recognition: This is the initial stage where consumers recognize a need or problem that can be solved through purchasing a product or service. The need can be triggered by internal factors (e.g., hunger) or external factors (e.g., advertising).
2. Information Search: Once the need is recognized, consumers seek information about potential solutions. They gather information through various sources like friends, family, online research, or advertising.
3. Evaluation of Alternatives: In this stage, consumers assess the available options and compare them based on factors like price, quality, features, and brand reputation. They may create a list of pros and cons for each option.
4. Purchase Decision: After evaluating the alternatives, consumers make their decision to buy a specific product or service. Factors like budget constraints and personal preferences play a significant role in this decision.
5. Post-Purchase Evaluation: After the purchase, consumers assess their satisfaction with the product or service. If it meets or exceeds their expectations, it can lead to brand loyalty and repeat purchases. If not, it can result in dissatisfaction and potentially negative word-of-mouth.
Personal, psychological, and social factors influence consumer behavior:
Personal Factors:
– Age and Life Stage: Different age groups have varying preferences and needs.
– Occupation: A person’s job can influence their purchasing decisions.
– Lifestyle and Personality: Individuals with similar lifestyles and personalities may have similar buying habits.
– Economic Situation: Income, savings, and financial stability impact what consumers can afford.
– Lifestyle: Hobbies, interests, and activities influence product choices.
Psychological Factors:
– Motivation: The underlying reason or need that drives a consumer’s purchase decision.
– Perception: How consumers interpret and make sense of information about products.
– Learning and Experience: Past experiences and knowledge affect consumer choices.
– Attitudes and Beliefs: Personal values and beliefs can influence preferences.
– Memory: How consumers remember information about products and brands.
Social Factors:
– Culture and Subculture: Cultural norms and values shape consumer behavior.
– Social Class: An individual’s social class can influence product choices.
– Reference Groups: People are influenced by the opinions and behaviors of those around them.
– Family: Family dynamics and roles impact purchase decisions.
– Social Networks: Online and offline networks can influence product recommendations.
(d) Define market segmentation and discuss its importance for a firm. [ GU 2014, 2016, 2019,2021]
Ans:- A market consists of large number of individual customers who differ in terms of their needs, preferences, and buying capacity. Therefore, it becomes necessary to divide the total market into different segments or homogeneous customer groups. Such division is called market segmentation.
According to Philip Kotler, market segmentation means “the act of dividing a market into distinct groups of buyers who might require separate products and/or marketing mixes.”.
Advantages/Importance/Significance of Market Segmentation:
1) Facilitates consumer-oriented marketing: Market segmentation allows for a more specific marketing mix tailored to different consumer segments, making it more effective than a one-size-fits-all approach.
2) Facilitates the introduction of a suitable marketing mix: Segment-wise data collection helps producers understand consumer needs, behaviors, and expectations, leading to more informed decisions about the marketing mix (Four Ps).
3) Facilitates the introduction of an effective product strategy: Market segmentation ensures that product development aligns with consumer needs, resulting in consumer satisfaction, higher sales, and increased profits for the marketing firm.
4) Facilitates the selection of promising markets: Segmentation helps identify sub-markets that can be served efficiently with limited resources, allowing firms to focus on the most productive and profitable segments.
5) Facilitates the exploitation of better marketing opportunities: Market segmentation helps identify promising opportunities by distinguishing between different customer groups within a market, enabling marketers to target the right audience from the start.
6) Facilitates the selection of a proper marketing program: Segmentation provides reliable information about target market needs, allowing marketers to tailor their marketing programs accordingly.
7) Provides proper direction to marketing efforts: Segmentation helps firms avoid unprofitable and irrelevant markets, enabling them to concentrate on promising segments, thereby directing marketing efforts effectively.
8) Facilitates effective advertising: Segmentation ensures that advertising efforts are focused on the segments that matter, making advertising more result-oriented by using media channels that reach specific segments.
(e) Describe the role and importance of pricing.
Ans:- Role and Importance of Pricing:
Pricing plays a crucial role in the success and profitability of a business. Here’s why pricing is important and the roles it serves:
1. Revenue Generation: Pricing directly impacts a company’s revenue. Setting the right price ensures that the company earns enough revenue to cover its costs and generate profits.
2. Profit Maximization: Pricing strategies aim to maximize profits by finding the balance between maximizing revenue and minimizing costs. Through effective pricing, companies can optimize their profit margins.
3. Competitive Positioning: Pricing affects how a company is perceived relative to its competitors. By strategically pricing its products or services, a company can position itself as offering superior value or quality compared to rivals.
4. Demand Management: Pricing influences consumer demand for products or services. By adjusting prices based on demand elasticity, companies can manage demand fluctuations and optimize sales volumes.
5. Brand Image: Pricing strategies can shape the perceived value and prestige of a brand. Premium pricing can convey exclusivity and luxury, while discount pricing may signal affordability and value.
6. Market Penetration: Pricing can be used as a tool for market penetration, allowing companies to gain market share by offering lower prices than competitors. This strategy is common in industries with high competition or when entering new markets.
7. Customer Perceptions: Pricing affects how customers perceive the quality and value of a product or service. A higher price may be associated with higher quality or luxury, while a lower price may raise concerns about quality or reliability.
8. Cost Recovery: Pricing is essential for covering the costs of production, distribution, and marketing. Setting prices above the breakeven point ensures that the company can recover its expenses and achieve profitability.
In summary, pricing plays a multifaceted role in business operations, impacting revenue, profitability, market positioning, customer perceptions, and competitive dynamics.
(f) Explain the various pricing policies available to a firm in taking its pricing decision.
Ans:- Various Pricing Policies Available to a Firm:
1. Cost-Plus Pricing: This involves adding a markup to the cost of production to determine the selling price. It ensures that the company covers its costs and earns a profit margin.
2. Value-Based Pricing: Pricing based on the perceived value of the product or service to the customer. It focuses on the benefits and value delivered to the customer rather than just the production costs.
3. Competitive Pricing: Setting prices based on competitor pricing or market benchmarks. This strategy aims to stay competitive in the market while maintaining profitability.
4. Skimming Pricing: Setting a high initial price for a new product or service to capture maximum revenue from early adopters or customers willing to pay a premium for innovation.
5. Penetration Pricing: Setting a low initial price to quickly gain market share and attract price-sensitive customers. This strategy aims to stimulate demand and discourage potential competitors.
6. Price Discrimination: Charging different prices to different customer segments based on factors such as location, demographics, or purchase behavior. It allows the company to capture more value from different customer groups.
7. Psychological Pricing: Setting prices to influence consumer perceptions and behavior. Tactics include using odd pricing (e.g., $9.99), prestige pricing (e.g., luxury brands), or bundle pricing (e.g., “buy one, get one free”).
8. Dynamic Pricing: Adjusting prices in real-time based on factors such as demand, time of day, or customer characteristics. This allows companies to maximize revenue by optimizing prices dynamically.
Each pricing policy has its advantages and limitations, and the choice of pricing strategy depends on factors such as market conditions, competitive dynamics, customer preferences, and company objectives.
(g) Explain the various methods to measure advertising effectiveness.
Ans:- Advertising effectiveness can be measured through various methods, each offering unique insights into the impact and success of an advertising campaign. Here are some common methods:
1. Surveys and Questionnaires: One of the most straightforward methods involves collecting feedback from consumers through surveys and questionnaires. These surveys may ask about brand recall, message comprehension, purchase intent, and overall impressions. Surveys can be conducted online, over the phone, or in person.
2. Brand Awareness Metrics: Tracking brand awareness metrics such as aided and unaided recall can gauge how well consumers remember and recognize a brand after exposure to advertising. The aided recall involves prompting respondents with the brand name, while unaided recall asks respondents to name brands without any cues.
3. Sales and Revenue Analysis: Examining sales data and revenue figures before, during, and after an advertising campaign can provide insights into its impact on consumer behavior. This method is particularly useful for direct response advertising or promotions with clear calls-to-action.
4. Market Research and Testing: Conducting market research and testing, such as A/B testing or split testing, allows advertisers to compare different versions of an ad or campaign to see which performs better in terms of metrics like click-through rates, conversion rates, and engagement levels.
5. Ad Tracking and Attribution: Using advanced analytics tools, advertisers can track the performance of their ads across various channels and platforms. Attribution models help attribute conversions and sales to specific advertising touchpoints, providing a clearer picture of the ad’s effectiveness in driving desired actions.
6. Social Media Metrics: For digital advertising, social media platforms offer a wealth of metrics to measure effectiveness, including likes, shares, comments, clicks, and conversions. Engagement metrics can indicate how well the ad resonates with the target audience and whether it drives meaningful interactions.
7. Brand Lift Studies: Brand lift studies measure changes in consumer perception and behavior resulting from exposure to an advertising campaign. These studies often use control groups to compare the attitudes and actions of consumers who were exposed to the ad versus those who were not.
8. Eye-Tracking and Biometric Analysis: Eye-tracking technology and biometric sensors can provide valuable insights into consumer attention and emotional responses to advertising stimuli. These methods offer a more objective measure of engagement and can help optimize ad creative for maximum impact.
9. Customer Feedback and Reviews: Monitoring customer feedback and reviews, both online and offline, can reveal how advertising influences brand perception and customer satisfaction over time. Positive feedback and sentiment can indicate a successful ad campaign.
10. Return on Investment (ROI): Calculating the ROI of an advertising campaign involves comparing the costs of the campaign to the revenue generated as a result of it. ROI analysis helps determine the overall effectiveness and profitability of advertising efforts.
By employing a combination of these methods, advertisers can gain comprehensive insights into the effectiveness of their advertising campaigns and make informed decisions to optimize future efforts.
(h) Discuss the various factors which affect promotion mix decision of an organisation.
Ans:- The promotion mix, also known as the marketing communication mix, refers to the combination of promotional tools and strategies that a company uses to communicate with its target audience and promote its products or services.
Factors Affecting Promotion Mix
There are many factors that influence promotional mix and they are known as product market factors.
1. Nature of the product: Different product requires different promotional mixes. Consumer goods and industrial goods require different strategies. Consumer goods are sold through advertising, personal selling, and displays. But industrial goods require more personal selling.
(a) Product complexity: If a product is technically sound and complex in nature then it requires personal selling. For example, Industrial products. On the other hand, if the product is simple we can go for advertising. For example, most of the FMCG products.
(b) Brand differentiation: Promotional mix is affected by brand differentiation and the degree to which the brand is differentiated from the competitor’s brand.
(c) Purchase frequency: If buyers frequently buy a product, such as soap, toothpaste, etc. the marketer will invest a good amount on advertising to push competition brands.
2. Nature of the market: Different market requires different promotional mixes and strategies. In the industrial market, advertising plays a more informative role than a persuasive role for industrial buyers. Personal selling emphasizes on two roles, i.e. information and persuasion in the industrial and consumer’s markets.
3. Stage in the product life cycle: The promotional product mix varies within the stage in the product life cycle. The nature of demand varies according to the stages in the life cycle. During the introductory stage, the customers do not realize the qualities of the product. Here, information about the product and its benefits are made known to the buyers. In this stage, more importance must be given to personal selling and trade shows. In the growth stage, customers know the qualities of the product. Hence to stimulate demand, advertising must be increased. In the maturity stage, sales and profits decline and hence all promotional activities should be cut down.
4. Market penetration: Here the product is already known to the buyers. In that situation, a sustaining promotional strategy is suitable. A brand has insignificant market penetration means it has a small market or struggling market. Market size and location: Product’s market size and location also influences the promotional mix. In a narrow market, where the number of potential buyers is small, direct mail is used. In a broad market, advertising is used.
5. Characteristics of buyers: The characteristics of prospective buyers strongly influence the promotional mix. Experienced professional buyers such as industrial purchasing agents need personal selling. Inexperienced buyers need advertising. Some buyers give importance to time, some to purchase of products, and buyers act according to the influence of friend, relatives, etc.
6. Distribution strategy: Companies fight more through distribution to establish their brands, and invest more money in personal selling and advertising. Companies that have already established their brand in the market have to invest only a small amount in personal selling and advertising.
7. Pricing strategy: Pricing strategy influences the promotional mix strategy. If the brand is priced higher than the competition, more personal selling is needed to get a middleman to stock and push the brand. If the brand is priced lower, little promotion is needed.
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Last Words
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