Fundamentals of Marketing (MKT-214) | Question Paper 2080 | BBS 3rd Year | MGMT | TU - Solution

13. Describe the consumer buying decision process. [10]

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Answer:

Buyer Behaviour refers to the people or organisations conduct, activities and actions together with the impact of various influences on them towards marketing decisions on purchase of products and services in a market.

The consumer buying decision process is a series of steps that consumers go through when making a purchase. These steps include:
i. Problem recognition: The consumer recognizes a need or desire for a product or service.

ii. Information search: The consumer gathers information about the product or service through various sources such as online reviews, recommendations from friends and family, or advertisements.

iii. Evaluation of alternatives: The consumer compares different options based on factors such as price, quality, features, and brand reputation.

iv. Purchase decision: The consumer makes a decision on which product or service to purchase based on their evaluation of alternatives .

v. Post-purchase evaluation: After making a purchase, the consumer evaluates their satisfaction with the product or service and may provide feedback or reviews.

Overall, the consumer buying decision process is a complex and iterative process that involves various factors influencing the consumer's decision-making and behavior.

14. Explain the bases for segmenting international market. [10]

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Answer:

Segmenting an international market involves dividing the global market into distinct groups of potential customers who have similar needs, preferences, or characteristics. The aim is to tailor marketing strategies effectively for each segment. Here are the major bases for segmenting the international market:

15. Who is wholesaler? What are its types? Explain. [4+6]

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Answer:

Wholesalers are intermediaries or middlemen in the distribution channel who buy goods in bulk from manufacturers or producers and sell them in smaller quantities to retailers or other businesses. They play a crucial role in the distribution process by offering storage, inventory management, and transportation services, as well as facilitating the flow of goods from manufacturers to retailers.

Types of Wholesalers:

i. Merchant Wholesalers: Merchant wholesalers are independent businesses that buy products from manufacturers and sell them to retailers, other merchants, or industrial, institutional, and commercial users. They take ownership of the goods they purchase and bear the risk associated with selling them. Merchant wholesalers can be further classified into two subcategories:

a. Full-Service Wholesalers: These wholesalers provide a wide range of services, including inventory management, transportation, storage, market research, and credit services to their customers.
b. Limited-Service Wholesalers: Limited-service wholesalers may offer fewer services than full-service wholesalers, focusing mainly on product distribution and sales.

ii. Brokers and Agents: Brokers and agents act as intermediaries between buyers and sellers without taking ownership of the goods. They earn a commission for facilitating transactions between suppliers and buyers. Brokers work on behalf of either the buyer or the seller, while agents represent one of the parties involved in the transaction.

iii. Manufacturers' Sales Branches and Offices: Some manufacturers establish their own sales branches or offices to distribute their products directly to retailers or industrial users. These entities operate similarly to wholesalers but are part of the manufacturer's organization.

iv. Industrial Distributors: Industrial distributors specialize in selling goods to industrial customers, such as manufacturers, construction companies, and other businesses that require industrial supplies, equipment, or components. They provide specialized knowledge and services tailored to the needs of industrial customers.

v. Retailer Cooperatives: Retailer cooperatives are wholesaler organizations formed by independent retailers to collectively purchase goods in bulk, often at discounted prices. By joining forces, retailers can benefit from economies of scale and lower prices on inventory.

Each type of wholesaler plays a unique role in the distribution channel, offering different services and catering to specific customer segments. Wholesalers help streamline the distribution process, reduce transaction costs, and enhance the efficiency of the supply chain.

16. What is advertising? Why is advertising used by marketers? [4+6]

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Answer:

Advertising is a promotional activity that involves communicating a message or information about a product, service, or brand to a target audience through various media channels. It is a crucial element of the marketing mix and plays a significant role in creating awareness, generating interest, and influencing consumer behavior.

Marketers use advertising for several reasons, including:

i. Creating awareness: One of the primary objectives of advertising is to create awareness about a product, service, or brand among the target audience. By using various media channels such as television, radio, print, digital, and outdoor advertising, marketers can reach a wide audience and introduce their offerings to potential customers.

ii. Building brand image: Advertising helps marketers build and maintain a strong brand image by communicating brand values, key messages, and unique selling points to consumers. Consistent and impactful advertising campaigns can create a positive perception of the brand in the minds of consumers and differentiate it from competitors.

iii. Promoting products and services: Advertising is used to promote specific products, services, or promotions to drive sales and increase market share. By highlighting the features, benefits, and competitive advantages of their offerings, marketers can convince consumers to try or purchase their products.

iv. Influencing consumer behavior: Through advertising, marketers can influence consumer behavior by persuading them to take specific actions, such as making a purchase, visiting a store or website, signing up for a service, or participating in a promotion. Effective advertising campaigns can create a sense of urgency or desire to act among consumers.

v. Targeting specific audience segments: Advertising allows marketers to target specific audience segments based on demographics, psychographics, behaviors, or preferences. By tailoring their messages and creative content to different target groups, marketers can increase the relevance and effectiveness of their advertising campaigns.

vi. Generating leads and conversions: Advertising can be used to generate leads, drive traffic to websites or physical stores, and ultimately convert prospects into customers. By integrating advertising with other marketing tactics such as sales promotions, discounts, or incentives, marketers can drive conversions and achieve their sales goals.

In summary, advertising is a powerful marketing tool used by marketers to create awareness, build brand image, promote products and services, influence consumer behavior, target specific audience segments, and generate leads and conversions. It plays a crucial role in driving sales, increasing market share, and building strong relationships with customers.