Question 1

The marketing mix element that involves activities such as advertising, sales promotions, and public relations is:

Accepted Answer

c. Promotion

Question 2

What is the term for the set of products and items that a company offers to customers?

Accepted Answer

c. Product line

Question 3

Packaging function includes:

Accepted Answer

Packaging protects and also helps in branding and promotion.

Question 4

Which is NOT a component of MIS?

Accepted Answer

Packaging is a product decision, not a MIS component.

Question 5

Which of the following is NOT a characteristic of a well-defined target market?

Accepted Answer

c. Large population

Question 6

Which of the following is NOT a step in the consumer decision-making process?

Accepted Answer

d. Market segmentation

Question 7

Positioning refers to:

Accepted Answer

Positioning is creating a distinct image/value for the brand in the target customer’s mind.

Question 8

Sales promotion is mainly:

Accepted Answer

Sales promotion offers short-term incentives like discounts, coupons, gifts.

Question 9

CTR stands for:

Accepted Answer

CTR measures clicks per impressions.

Question 10

The process of selecting one or more market segments to enter and developing products and marketing strategies to meet the needs of those segments is known as:

Accepted Answer

d. Target marketing

Question 11

Odd pricing is an example of:

Accepted Answer

₹99 instead of ₹100 is psychological (odd) pricing.

Question 12

Skimming pricing is suitable when:

Accepted Answer

Skimming works for unique products and customers willing to pay more.

Question 13

ROAS is calculated as:

Accepted Answer

ROAS measures returns for every rupee spent on ads.

Question 14

Vertical channel conflict occurs between:

Accepted Answer

Vertical conflict is between different levels of the channel.

Question 15

The core product refers to:

Accepted Answer

Core product is the fundamental benefit the customer seeks.

Question 16

Which is an example of unethical marketing?

Accepted Answer

Misleading ads deceive consumers.

Question 17

Influencer marketing becomes unethical when:

Accepted Answer

Non-disclosure misleads audience; disclosures like #ad are ethical.

Question 18

A perceptual map is used to:

Accepted Answer

Perceptual map plots brands on two key attributes to visualise positioning.

Question 19

The stage where a consumer compares brands on attributes is:

Accepted Answer

Evaluation of alternatives involves comparing brands using criteria like price, quality and warranty.

Question 20

The concept of product life cycle is most closely associated with which marketing concept?

Accepted Answer

b. Product development

Question 21

Define market segmentation.

Accepted Answer

Market segmentation is dividing a broad market into smaller groups of customers with similar needs/characteristics and buying behaviour.

Question 22

Define marketing research.

Accepted Answer

Marketing research is the systematic design, collection, analysis and reporting of data relevant to a marketing problem.

Question 23

What is SEO?

Accepted Answer

SEO is the process of improving a website's visibility in organic search results.

Question 24

What is A/B testing?

Accepted Answer

A/B testing compares two versions of a page/ad/email to see which performs better.

Question 25

Define promotion.

Accepted Answer

Promotion is communication used by a firm to inform, persuade and remind customers about its products and influence buying behaviour.

Question 26

Define consumer behaviour.

Accepted Answer

Consumer behaviour is the study of how individuals and groups select, buy, use and dispose products/services and the processes behind these actions.

Question 27

What is retailing?

Accepted Answer

Retailing is selling goods directly to the final consumer for personal use.

Question 28

Write the full form of CSR.

Accepted Answer

CSR stands for Corporate Social Responsibility.

Question 29

What is labelling?

Accepted Answer

Labelling is providing information on the product/package for identification, description and legal compliance.

Question 30

What is cost-plus pricing?

Accepted Answer

Cost-plus pricing is setting price by adding a fixed mark-up to the cost of the product.

Question 31

Explain pricing objectives (any three) with brief points.

Accepted Answer

Pricing objectives differ by business goals. Any three are:

1) Profit objective: set price to achieve target profit/ROI.
2) Market share objective: use lower price (penetration) to capture more customers.
3) Sales/revenue objective: maximise sales volume or turnover.
4) Survival objective: price low to survive in crisis/intense competition.
5) Image/quality leadership: premium pricing to create high-quality brand image.

Thus, objectives guide the choice of method and strategy.

Question 32

List any three unethical marketing practices with examples.

Accepted Answer

Three unethical marketing practices with examples:
1) Misleading advertising: claiming "100% cures" without proof.
2) Hidden charges: adding extra fees at checkout without clear information.
3) Fake discounts: increasing MRP and then showing a big discount.

Other examples include fake reviews and selling counterfeit products.

Question 33

Explain types of discounts (any three) with meaning.

Accepted Answer

Discounts encourage buying and channel support. Any three:
1) Trade discount: given to wholesalers/retailers for reselling and channel margins.
2) Cash discount: given for early/quick payment.
3) Quantity discount: offered for bulk purchases to increase volume.
4) Seasonal discount: offered in off-season to reduce stock and stabilise demand.

Discounts must be planned to avoid profit erosion.

Question 34

Explain common positioning errors (any three).

Accepted Answer

Common positioning errors (any three):
1) Under-positioning: customers have unclear idea about the brand.
2) Over-positioning: brand seen only for a very narrow group.
3) Confused positioning: frequent message changes create confusion.
4) Doubtful positioning: claims are not believable (no proof).

Good positioning is clear, consistent and credible.

Question 35

Explain marketing research process (any six steps).

Accepted Answer

Marketing research process includes (any six):
1) Define the problem and objectives.
2) Develop research plan (data sources and method).
3) Design research (questionnaire, sampling).
4) Data collection (fieldwork).
5) Data processing and analysis.
6) Interpretation of findings.
7) Report writing and recommendations.

Clear problem definition is critical because it guides all later steps.

Question 36

Explain the concept of post-purchase behaviour and cognitive dissonance. How can marketers reduce dissatisfaction and dissonance?

Accepted Answer

Post-purchase behaviour refers to how consumers feel and act after buying—whether they are satisfied, dissatisfied or doubtful.

1) Satisfaction and dissatisfaction
- Satisfaction occurs when product performance matches/exceeds expectations, leading to repeat purchase and positive word-of-mouth.
- Dissatisfaction occurs when performance is below expectations, leading to complaints, returns and negative word-of-mouth.

2) Cognitive dissonance
- Cognitive dissonance is post-purchase doubt ("Did I choose the right brand?") especially for expensive/high-involvement products.
- It may occur due to conflicting information, competitor offers, or fear of making the wrong choice.

How marketers can reduce dissatisfaction and dissonance:
- Deliver product quality consistent with the promise (avoid misleading claims).
- Strong after-sales service: quick installation, service centres, customer support.
- Warranty/guarantee and easy return/refund policies reduce perceived risk.
- Follow-up communication: usage tips, onboarding videos, thank-you messages.
- Encourage reviews and user communities to build confidence.

Thus, managing post-purchase behaviour is critical for customer retention, loyalty and brand reputation.

Question 37

Explain the pricing decision process and how a firm sets the final price (exam-style).

Accepted Answer

Pricing decision process is a step-by-step approach to set a price that matches objectives, customer value and competition.

1) Set pricing objective
- Decide whether the goal is profit, market share, sales growth, survival, or premium image.

2) Estimate demand and customer value
- Understand willingness to pay, perceived value, and price elasticity.
- Identify customer segments and what benefits they value.

3) Estimate costs
- Calculate fixed and variable costs; determine minimum price floor.
- Use break-even analysis to know minimum sales required.

4) Analyse competition
- Study competitor prices, offers, quality and positioning.
- Decide whether to price above, below or at par with competitors.

5) Select pricing method/strategy
- Choose cost-plus, value-based or competitive pricing; decide skimming/penetration, psychological pricing, etc.

6) Set final price and price adjustments
- Decide list price, discounts/allowances, promotional price, geographical price, and credit terms.

7) Monitor and revise
- Track sales, profit, competitor response and customer feedback; adjust price if required.

Thus, final price is not only cost-based; it is the result of balancing objective, customer value and competition.

Question 38

Explain CSR and green marketing. Also discuss greenwashing and how companies can avoid it with ethical communication.

Accepted Answer

CSR (Corporate Social Responsibility) means that a business is responsible towards society and environment beyond earning profit. CSR includes environment protection, employee welfare, community development, ethical sourcing and transparency. CSR improves stakeholder trust and strengthens brand image.

Green marketing means planning and marketing products/practices that are environmentally friendly. It includes designing eco-friendly products, sustainable packaging, and responsible promotion.

Benefits of green marketing:
- positive brand image, customer trust
- compliance with regulations
- efficiency and cost savings in the long run

Greenwashing:
Greenwashing is when a company gives a false or exaggerated impression that its product is eco-friendly (e.g., vague claims like "100% green" without proof). This misleads consumers and harms trust.

How to avoid greenwashing (ethical communication):
1) Use specific claims and measurable data (e.g., "30% recycled plastic").
2) Provide evidence and certifications where possible.
3) Be transparent about limitations (what is green and what is not).
4) Avoid misleading visuals/words that imply environmental benefits not present.

Thus CSR and genuine green marketing create long-term value, while greenwashing damages reputation.

Question 39

Explain web analytics and KPIs used to evaluate a digital campaign. Include formulas/meaning for key metrics.

Accepted Answer

Web analytics means measuring and analysing user behaviour on websites/apps to understand performance and improve marketing decisions.

Key KPIs for a digital campaign:
1) Traffic (sessions/users): how many people visited and from which sources (organic, social, paid).
2) CTR (Click-Through Rate): shows how attractive the ad/message is.
   Formula: CTR = (Clicks / Impressions) × 100.
3) Conversion rate: shows how well the landing page and offer convert visitors into desired actions.
   Formula: Conversion rate = (Conversions / Visits) × 100.
4) CAC (Customer Acquisition Cost): cost to acquire one new customer.
   Formula: CAC = Total marketing cost / New customers.
5) ROAS (Return on Ad Spend): revenue generated per unit ad spend.
   Formula: ROAS = Revenue from ads / Ad spend.

Interpretation:
- High CTR but low conversion rate indicates landing page/offer problems.
- High CAC with low ROAS indicates inefficient spend and needs optimisation.

Thus analytics helps in continuous improvement and ROI-focused decisions.

Question 40

Explain branding, packaging and labelling decisions and their importance in marketing.

Accepted Answer

Branding, packaging and labelling are key product-related decisions that directly influence customer perception and purchase.

1) Branding
- Meaning: creating a name/symbol/design that identifies and differentiates the product.
- Importance: builds recognition, trust and perceived quality; reduces buyer risk; supports premium pricing and loyalty.
- Good branding creates brand equity through awareness and positive associations.

2) Packaging
- Meaning: designing the container/wrapper of the product.
- Functions: protection from damage/spoilage, convenience in handling/storage, identification and shelf appeal, information display, and promotion.
- Good packaging is attractive, safe, eco-friendly, easy to open and cost-effective.

3) Labelling
- Meaning: information printed on package/label.
- Functions: identifies product/brand, describes ingredients/usage, provides safety warnings, and ensures legal compliance (MRP, expiry date, net quantity, customer care).

Overall importance:
- These decisions shape brand image, influence purchase at the point of sale, improve customer experience, and help the firm comply with laws and build long-term loyalty.

Marketing Management — Question Paper

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