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CUSTOMER_CODE
SMUDE
DIVISION_CODE
SMUDE
EVENT_CODE
APR2016
ASSESSMENT_CODE MB0046_APR2016
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
73191
QUESTION_TEXT
Briefly discuss the different types of agent wholesalers.
SCHEME OF
EVALUATION
Agent wholesalers are primarily involved in the buying and selling of
goods and services. They typically negotiate sales as representatives of
other firms and do not take title to merchandise. The different types of
agents are: (Each point carries 2 marks)
1. Manufacturers’ agents: They are independent firms which typically
handle non-competing lines of a variety of manufacturers and are often
used in place of a manufacturers own sale force. New companies use
manufacturer’s agents when they have neither the expertise nor the
resources to develop their own sales force. Established firms rely upon
manufacturing and prefer to subcontract their distribution activities or
when they wish to enter in new markets.
2. Brokers: They are commonly used in the real estate industry where
they negotiate the buying and selling of property as well as negotiate its
rental and leasing. They are the middlemen whose primary activity is to
establish contact between the buyer and the seller. They negotiate and
facilitate sales and are compensated by a fee or commission. They do
not undertake title of merchandise.
3. Commission merchants: They are sometimes called factors. They
receive products on consignment basis and sell them on a commission
basis. They typically operate on an autonomous basis. They are most
often used in distribution channels for farm produce, lumber products
etc. where the manufacturers identity is relatively unimportant to the
buyer.
4. Selling agents: They differ from manufacturer’s agents and brokers in
that they normally carry a supplier’s entire product line. Unlike
manufacturer’s agents and brokers, they usually set prices and terms of
sale and also undertake promotional activities. Thus selling agents in
effect act as the manufacturers sale force. As with other agent
wholesalers, selling agents do not take title or possession of the goods
they handle.
5. Auction companies: They invite buyers and sellers to a single physical
location, either at the seller’s location or at the auction company’s site.
In addition to bringing buyers and sellers together, auction firms
promote the goods they handle and actively negotiate the sale of those
goods. These wholesalers participate to a less degree in the other
marketing flows, except for ownership. Their participation in a channel
is typically limited to facilitating a transfer of ownership. These firms
also play a key role in the marketing of some commodities such as
tobacco.
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
73193
QUESTION_TEXT
Explain the various characteristics that affect the consumer
buying behavior?
SCHEME OF
EVALUATION
Influence of cultural factors
Culture
Subculture
Social class
Influence of social factors
Reference group
Family
Role and status
Influence of personal factors
Psychological factors
Motivation
Perception
Selective attention
Selective distortion
Selective retention
Learning
Attitude
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
73194
QUESTION_TEXT
Explain the stages of product lifecycle
Introduction stage
Growth stage
SCHEME OF EVALUATION Maturity stage
Decline stage
2.5 Mark each with explanation
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
126174
QUESTION_TEXT
What are the benefits and components of MIS?
The benefits of MIS are as follows:
MIS is concerned with planning and control. It allows marketing managers
to carry out the analysis, planning, implementation, and control
responsibilities more effectively. MIS includes all the ingredients that
are employed in providing information support to managers in making
planning and control decisions.
The output of MIS is information that sub serves managerial functions.
MIS deals with information that is systematically and routinely collected
in accordance with a well-defined set of rules. This implies that a MIS is
a part of the formal information network in an organisation. It provides
marketing intelligence to the firm and helps in early spotting of
changing trends.
SCHEME OF
EVALUATION
MIS assesses the information needs of different managers and develops
the required information on time from the supplied data regarding
competition, prices, advertising expenditures, sales, distribution and
market intelligence, etc. It helps the firm to adapt its products and
services to the needs and tastes of the customers.
MIS provides inputs from marketing environmental factors like target
markets, marketing channels, competitors, consumers, and other forces
for creating, changing, and modifying marketing decisions in the
formulation of relevant and competitive marketing strategies. It ensures
effective tapping of marketing opportunities and enables the company
to develop effective safeguard against emerging marketing threats.
Components of MIS
The overall objective of any MIS is to provide inputs from marketing
environmental factors like target markets, marketing channels,
competitors, consumers, and other forces for creating, changing, and
modifying marketing decisions in the formulation of relevant and
competitive marketing strategies.
Internal record systems – Internal record systems are available within the
company across various departments and provide relevant, routine
information for making marketing decisions. The most evident internal
record system is the purchase and payment cycle systems. It records
the timing and size of orders placed by consumers, the payment cycles
followed by consumers, and the time taken to fulfil the orders in the
shortest possible time.
Marketing intelligence system – A marketing intelligence system is the
system of collecting and collating data. This system tries to capture
relevant data from the external environment. It collects and manages
data from the external environment about the competitors’ moves,
government regulations, and other relevant information having a direct
impact on the marketing environment of the firm.
Analytical marketing systems – Analytical marketing systems are also
known as Marketing Decision Support Systems (MDSS). A MDSS is a
coordinated collection of data, systems, tools, and techniques with
supporting software and hardware. Using this collection, an
organisation gathers and interprets relevant information from business
and environment and turns it into a basis for marketing action. It
involves problem-solving technology consisting of people, knowledge,
software, and hardware integrated through the information technology
platform into the sales management process of the organisation.
Marketing research systems – Marketing research systems are based
on systems and processes that help marketing managers to design,
collect, analyse, and report data and findings relevant to a specific
marketing situation facing the company. It also involves analysis of
information, which includes a coordinated collection of data, systems,
tools, and techniques with supporting software, and hardware by which
an organisation gathers and interprets the relevant data and turns it into a
basis for marketing action and tactics.
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
126175
QUESTION_TEXT
Explain the steps in business buying process.
1. Step 1: Recognising an organisational need
SCHEME OF
EVALUATION
Organisational purchasing starts with the identification of demand
for products and services. While there are different kinds of needs,
most needs arise out of situations related to the operation of the
business. Need recognition is not always as complicated or involved as
it is in new task and modified re-buy decisions. It becomes a routine,
particularly in a straight re-buy situation. A large construction company
may negotiate a contract with a steel beam supplier to replenish
inventory on demand. Purchase orders are automatically written and
sent to the supplier when the inventory reaches a pre-specified mark.
Such routine buying situations offer the best opportunities to use
computer based database management systems.
2. Step 2: Determining product specifications
Subsequent to identification of the responsibility centre, the
purchase manager also specifies exact product and service descriptions
for procurement. It is also necessary to estimate the exact quantity
required and the period in which these quantities need to be delivered.
An estimate of other associate services required for the purchase of
specified goods and services is also necessary.
3. Step 3: Identifying suppliers
If there are many suppliers on the list, a screening procedure that
bases its decisions on certain predefined criteria is needed. The
information gathered enables the organisational buyer to quickly look
for suppliers who can meet minimum requirements. These
requirements might be delivery time, capacity to meet the buyer’s
quantity needs, and breadth of the product line. Failure to meet a
minimum requirement usually means that a supplier will not be
included in the list of acceptable suppliers, no matter how well that
supplier stacks up on other criteria. Because of a good past service to
the company, a purchasing agent may, for example, put a supplier on
the list though he/she does not meet the minimum requirements.
At this stage, the buying centres search for different suppliers and
try to find out their qualification or eligibility by collecting information
on their performance and capability from various sources. It then
notifies or requests for proposals from possible suppliers and sends
these proposals for evaluation to the standing committee on purchase.
4. Step 4: Information search and supplier evaluation
A buying centre may have to evaluate several product types for a
particular use before suppliers can be selected. If products are
complicated, technically trained people sort through the alternatives to
recommend those that meet previously developed product
specifications. For instance, many companies deal with the rapidly
changing technology of computer products (both hardware and
software) by creating task forces that keep themselves abreast of
current product developments. A task force recommends product types
that are suitable for particular applications.
5. Step 5: Negotiation of purchase orders
An organisational buyer may negotiate a contractual agreement
with a supplier. An agreement of this kind can cover a single purchase
of a product or repurchase of the product over a period of time.
Contracts are commonly used in straight re-buy situations. The buying
centre of a large supermarket chain enters into contracts for purchases
of frequently sold products like soap, toothpaste, and peanut butter for
a year or more. Buying centres negotiate terms of payment, credit, and
delivery during this stage to arrive at a specified order routine, which
the supplier is required to honour under the negotiated agreement.
Normally a term of contract is signed between both the parties.
6. Step 6: Evaluation of supplier performance
Organisational buyers usually want to know how well suppliers
comply with the purchase agreement. Thus, an important part of
organisational purchasing is evaluation of suppliers after purchase. This
task is typically assigned to the purchasing department. The criteria
used for supplier selection become the performance standards for this
evaluation.
Information is collected on the performance of the product or
service in use. A questionnaire may be sent to users of the product to
obtain their input. Other technical measures of performance may also be
devised. A manufacturer who purchases aerosol packaging, for instance,
may select a sample of the packaging and test it for pressure and
evenness of application. The buying centre develops a provision for
feedback and evaluation on a continuous basis. It also develops systems
and procedures to have a regular communication with the suppliers
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
126182
QUESTION_TEXT
Explain the functions performed by marketing channels.
SCHEME OF EVALUATION
1.
2.
Buying (1 Mark)
Carrying inventory (1 Mark)
3.
4.
5.
6.
7.
8.
9.
10.
Selling (1 Mark)
Transportations (1 Mark)
Financing (1 Mark)
Financing (1 Mark)
Promoting (1 Mark)
Negotiations (1 Mark)
Marketing research (1 Mark)
Servicing (1 Mark)