M.B.A 2nd Year Paper III: MARKETING MANAGEMENT(Acharya Nagarjuna University (ANU), Guntur, Andhra Pradesh-2012)

M.B.A. DEGREE EXAMINATION, MAY 2012.
Second Year
Paper III — MARKETING MANAGEMENT
Time : Three hours Maximum : 75 marks
SECTION A — (3 × 5 = 15 marks)
Answer any THREE of the following.
1. (a) Marketing mix
(b) Market positioning
(c) Psychological pricing
(d) Direct marketing
(e) Family branding
(f) Sales forecasting.
SECTION B — (3 × 15 = 45 marks)
Answer any THREE of the following.
2. Discuss the significance of marketing in a developing economy.
3. Explain how macro and micro environment are influencing as marketing strategy
of a company.
4. Define and discuss the nature and scope of consumer behaviour.
5. Classify products with suitable examples. State their features.
6. How do you assess the effectiveness of advertising?
7. How do you resolve conflict between different channels of distribution? SECTION C — (15 marks)
(Compulsory)
8. Note:
Case Study:
Indian Pharmaceuticals was established in 1985 to manufacture, distribute and
market pharmaceutical drugs. The company established a place for itself in
pharmaceutical industry in India. In 1995, the Managing Director of the company stressed the need for diversification and addition of new products to its existing product range. Looking at the success of the Triveni brand of high protein biscuits, he floated the idea of manufacturing and marketing the biscuits rich in protein, minerals and vitamins. His advisors suggested that since most of the people in the country were suffering from protein deficiency such products enriched with protein would be desirable and should be a big success specially inview of its competitors brand. The marketing research department also gave green signal to the project after conducting brief survey the company promoted its biscuits with the triple plus protein brand name. It was supplied in a 400gm. packet consisting of 60 biscuits at the price of Rs. 75. The product was heavily advertised in the news papers, health magazines, radio and television. The target audience was middle class who it was believed suffered most from protein deficiency and can afford Triple plus protein biscuits. The ordinary biscuits were available in the market at the rate of Rs. 30 to Rs. 40 per kg. The thrust of Triple Plus biscuits in the promotion campaign was that these biscuits contain three times more protein and have additional mineral and vitamin value. The company has 50 stockists covering the entire country and has a sales force of about 150 medical representatives for promoting its products through doctor and registered medical practitioners. The medical representatives of the company had very good rapport with Government and charitable hospitals. To promote the Triple Plus brand of biscuits, its medical representatives gave discount coupons to doctors for passing over to their patients. The buyers were entitled to Rs. 5 per packet of 400 gms, the scheme continued for about 6 months. Despite heavy advertising and canvassing by its medical representatives, the product was unable to attract customers. It was observed that the launching of this product has not affected the market position of Triveni biscuits at all which was being sold at Rs. 90 for a pack of 275 gms. Rather, it was observed that the sale of Triveni biscuits have increased marginally consequent to the advertisement campaign by the India pharmaceuticals. The company could achieve only 25% of its sales target in the first year and it remained almost static for the next year.
Questions:
(a) What are the reasons for the failure of the company to achieve its sales target?
(b) Critically evaluate the advertising and sales promotion strategy followed.
(c) Suggest suitable promotion plan which can increase the sales of the company.