Marketing and Sales Questions

Q:

Designing pricing strategies and programs :

How do sellers respond to price changes of their competitors?

Answer

In the light of competition, it may be seen that competitors may initiate price changes. If the cutting off on prices does not affect the company, then the current pricing strategy itself can be continued to maintain the profitability of the company. However if the price change on one firm is affecting the other, then it can:


a.reduce the product price at par with competitors’ price or below competitors’ price


or


b. Provide added advantage to the existing product like better quality, or ‘a buy one get one free’ offer.


or


c.Provide better quality of the product at a higher price thereby not being at par with the competitors.

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Q:

Selecting and managing marketing channels :

How are the channel members managed and motivated, once they are selected?

Answer

These days channel members are being accepted by companies as their partners. The intermediaries are even being asked to integrate their business with the companies which results in lesser costs, greater efficiency and improved customer service. Corporates like Airtel are adopting PRM (Partner relationship management) software to give that added advantage to their supply chain. They organise rewards and recognition programs for their channel partners and also organise proper channels though which partners can vent any of their grievances relating to payments, violation of codes etc.

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Q:

Controlling marketing activities :

What is profit ability control?

Answer

Profitability control is a mechanism of monitoring the sales made, profits earned and expenditure incurred by a company. The relative profit earning capacity of a firm’s products and consumer groups can be determined via profitability control. Sometimes surpisingly, it may be found out by companies how a small proportion of their products and even customers actually account for a significant percentage of the company’s profits. This can be achieved through profitability control. At times when the companies earn surplus profits, then such profits may even be ploughed back or reinvested. This also forms part of profitability control.

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Q:

Which of the following is an example of market failure?

A) Prices do not reflect the full social cost of production B) A firm goes out of business because it cannot find a market for its products
C) Prices rise so that the consumers cannot afford the products they want to buy D) Producer surplus is maximized
 
Answer & Explanation Answer: A) Prices do not reflect the full social cost of production

Explanation:

Prices do not reflect the full social cost of production is an example of Market failure.

 

A market failure occurs when the supply of a good or service is insufficient to meet demand. This results in an inefficient distribution of resources among market participants.

It also occurs if externalities are not accounted for.

If a firm fails to maximize its profits this is not a general market failure.

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Q:

Managing retailing, wholesaling and market logistics :

What is logistics management?

Answer

Logistics management is the part of supply chain management that plans, implements, and controls the efficient, effective, forward, and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customer's requirements.


 


 

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Q:

What is innovation in marketing?

Answer

Innovation is generally considered a process that brings together various novel ideas in a way that they have an impact on society. It differs from invention in that innovation refers to the use of a better and, as a result, novel idea or method, whereas invention refers more directly to the creation of the idea or method itself. Innovation differs from improvement in that innovation refers to the notion of doing something different rather than doing the same thing better.


 

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Q:

Marketing refers to -

A) Execution of sales B) Planning sales campaigns
C) Advertising and promotions D) Philosophy that stresses customer value and satisfaction
 
Answer & Explanation Answer: D) Philosophy that stresses customer value and satisfaction

Explanation:
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Q:

What is Benchmarking?

Answer

Benchmarking is the process of comparing one's business proceses and performance metrics to industry bests or best practices from other industries. Dimensions typically measured are quality, time and cost.

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