Download GTU MBA 2018 Winter 3rs Sem 3539903 Advance Marketing Management Question Paper

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GUJARAT TECHNOLOGICAL UNIVERSITY

MBA (PART TIME)- SEMESTER 3- EXAMINATION - 2018

Subject Code: 3539903 Date:05/12/2018

Subject Name: Advance Marketing Management

Time:10:30am To 01:30pm Total Marks: 70

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Instructions:

1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.

1. Decision Support system

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2. Franchising
3. Non store retailing
4. Private Label
5. Hypermarket
6. Competitive Intelligence

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7. Cause related marketing

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Q.4 Case — Impact of Sales Promotion

Mr. Rudra was a successful marketing manager. Ever since he took charge as the marketing manager in Bharat Food Limited in Ahmedabad, he continued following a cost-plus pricing method to set price for chocolates, biscuits and other bakery products. He allowed liberally trade discounts, cash discounts and other special concessions on the selling price. He practiced discriminative pricing policy to satisfy different groups of buyers. Moreover, he offered various other Sales Promotional incentives during Diwali, Janmashtami, Eid and such other Indian festivals. He tried all the tactics. In the last five years, the company has achieved nearly 25% of growth in the net profits. Mr. Keshav, the GM of the company, was quite satisfied with the stable and gradual progress in the severe competition. Looking to the stable and sustainable performance of Mr. Rudra, the GM had granted him all the powers to decide independently on the price and pricing-related issues.

One day, Mr. Keshav met a car accident and died. Mr. Madhav, the MD had to appoint a new General Manager. Next month, Mr. Shyam, 40, an ambitious and dynamic man, having 10 years of experience as a senior marketing manager in a leading company carrying diamond business, who was graduated from Harvard University, appointed as the new GM in the company. His style was quite different than his predecessor.

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Immediately after his appointment, he studied marketing audit report of last five years, analysed marketing strategies, particularly pricing strategies and realised the scope of reduce costs and to actualise more profits. He called Mr. Rudra and advised to make the following two major changes in pricing strategies with immediate effect;

• Apply indiscriminative pricing policy.
• Reduce price allowances, discounts, seasonal offers and other incentives to realise more profits.

Mr. Rudra strongly opposed these changes. He warned the GM regarding adverse impacts of such changes on customers’ satisfaction, dealers interest and hence on the sales. But, the GM was firm to alter pricing strategies. All the changes were implemented immediately.

After Three months, sales started declining. Those who were placing bulk orders started making small orders, sales department failed to clear bills of credit sales in time. Sales during Diwali were far below than the previous years. The company experienced 10% cut in overall sales instead of a gradual growth. Mr. Shyam;-GM, disappointed with the performance of marketing department. Though the product was standard, price was reasonable, and the company spent a large amount for advertising, sales fell down. He called a meeting to investigate the facts.

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Q.5 CASE - Distribution Channel

Mr. Satyam, the Gm of Beauty Care Ltd., a cosmetic company, situated in Ahmadabad (Gujarat), held an urgent meeting of all the sales area offices of the state to discuss the proposed strategy for newly developed hair oil product. Since last five years, company had the strategy sell the products via dealers. In the meeting, the GM asked the officers whether to go for dealership, or salesmanship. The officers expressed their views one by one;

1. Mr. Raj, the most experienced sales officer said, “Sir, company must go for dealership and should concentrate on quality and production.”
2. Mr. Manek, a junior young sales officer stated. “Salesmanship is the most effective option to promote the product and accelerate sales. Door-to-door selling by lady salesman is an effective option.”

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3. Mr. Dilip, the recently appointed sales officer said with confident, “Sir, first we must prepare a powerful team of salesmen to promote the product aggressively. One the product become familiar and is accepted by the market, we should go for dealership. I believe that dealer can sell, but can’t promote the product.”
4. Miss Salini, the only lady sales officer in the company expressed her view, “Sir, I believe that retailer in different cities and towns can do a better job. They have live contact with customer and can easily promote the product by convincing the regular customer to try the product. It is better to prepare-retailer than salesman. This is cheaper and the perfect way.”

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