Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2019 Summer 1st Sem 3519206 Fundamentals Of Marketing Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 1 ? EXAMINATION ? SUMMER 2019
Subject Code: 3519206 Date:21/05/2019
Subject Name: Fundamentals of Marketing
Time: 02:30 PM To 05:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q. No. Marks
Q.1 Explain following terms:
(a) Competitive Advantage
(b) Integrated Marketing Communication
(c) Targeting and Positioning
(d) Conformance Quality
(e) Experience Curve
(f) Holistic Marketing
(g) Differentiate warranties and guarantees
14
Q.2 (a)
Explain concept of maximizing Customer Lifetime Value.
07
(b) Explain marketing research process and also give your insights on
how to overcome barriers to the use of marketing research.
07
OR
(b) Discuss the different methods of estimating current demands with the
help of examples.
07
Q.3 (a) Explain stages in buying process in brief in context of consumer
markets.
07
(b)
Discuss distinctive characteristics of services and also discuss categories
of service mix.
07
OR
Q.3 (a)
A relation between consumer psychology and pricing cannot be ignored.
Discuss procedure of setting price in this context.
07
(b) Write a brief note on initiating and responding to price changes. 07
Q.4 (a) Explain the roles of marketing channels. 07
(b) You being marketing head of Textile Company is given a task of
segmentation; which basis of segmentation you will choose and why?
07
OR
Q.4 (a) What do you understand by Vertical marketing system (VMS)?
Discuss its various types with real life example(s).
07
(b) Define channel conflicts. Explain the sources of channel conflicts in
brief.
07
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Page 1 of 3
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 1 ? EXAMINATION ? SUMMER 2019
Subject Code: 3519206 Date:21/05/2019
Subject Name: Fundamentals of Marketing
Time: 02:30 PM To 05:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q. No. Marks
Q.1 Explain following terms:
(a) Competitive Advantage
(b) Integrated Marketing Communication
(c) Targeting and Positioning
(d) Conformance Quality
(e) Experience Curve
(f) Holistic Marketing
(g) Differentiate warranties and guarantees
14
Q.2 (a)
Explain concept of maximizing Customer Lifetime Value.
07
(b) Explain marketing research process and also give your insights on
how to overcome barriers to the use of marketing research.
07
OR
(b) Discuss the different methods of estimating current demands with the
help of examples.
07
Q.3 (a) Explain stages in buying process in brief in context of consumer
markets.
07
(b)
Discuss distinctive characteristics of services and also discuss categories
of service mix.
07
OR
Q.3 (a)
A relation between consumer psychology and pricing cannot be ignored.
Discuss procedure of setting price in this context.
07
(b) Write a brief note on initiating and responding to price changes. 07
Q.4 (a) Explain the roles of marketing channels. 07
(b) You being marketing head of Textile Company is given a task of
segmentation; which basis of segmentation you will choose and why?
07
OR
Q.4 (a) What do you understand by Vertical marketing system (VMS)?
Discuss its various types with real life example(s).
07
(b) Define channel conflicts. Explain the sources of channel conflicts in
brief.
07
Page 2 of 3
Q.5 Case Study
McDonald?s is the world?s leading hamburger fast-food chain, with over 32,000/- restaurants in
118 countries. More than 75 percent of McDonald?s restaurants are owned and operated by
franchisees, which decreases the risk associated with expansion and ensures long-term tenants for
the company. McDonald?s serves 58 million people each day and promises a simple, easy and
enjoyable food experience for its customers.
The history of the McDonald?s Corporation dates back to 1955 when Ray Kroc, a multimixer
salesman, franchised a hamburger restaurant from the McDonald brothers, named it McDonald?s,
and offered simple foods such as the famous 15 cent hamburger. Kroc helped design the building,
which featured red and white sides and a single golden arch to attract local attention. Ten years
later, 700 McDonald?s restaurants existed around the country, and the brand was on its way to
becoming a household name.
During the 1960s and 1970s, Kroc led McDonald?s growth domestically and internationally while
pushing the importance of quality, service, cleanliness and value. The menu expanded to include
the Big Mac, Quarter Pounder, Happy Meal, Filet-O-Fish, and breakfast items like the Egg
McMuffin. Kroc also understood early on that his core audience consisted of children and families.
Therefore, he focused McDonald?s advertising efforts at these groups and introduced Ronald
McDonald in 1965 during a 60-second commercial. Soon, characters such as Grimace, the
Hamburgler, and Mayor McCheese made their debut in McDonald?s advertising campaigns and
helped lure children into its restaurants for simple, good-tasting food, and a fun experience.
It was also during this time that McDonald?s created the Ronald McDonald House, which opened
in 1974 to help children with leukemia. Since then, it has expanded into a global charity effort
called Ronald McDonald House Charities that strives to improve children?s lives, health and well-
being through three major programs: Ronald McDonald House, Ronald McDonald Family Room,
and Ronald McDonald Care Mobile.
McDonald?s aggressively expanded overseas throughout the 1980s by adding locations throughout
Europe, Asia, the Philippines, and Malaysia. This rapid expansion, however, led to many struggles
during the 1990s and early 2000s.The company lost focus and direction, expanding by as many as
2,000 new restaurants a year. New employees weren?t trained fast or well enough, all of which led
to poor customer service and dirtier restaurants. New competitors popped up and the company
acquired nonburger companies, Chipotle and Boston Market (which were eventually sold in 2006
and 2007). Consumer tastes changed, and new products like pizza, the Arch Deluxe, and deli
sandwiches failed to connect with consumers, as did tweaks to the current menu including multiple
changes to the Big Mac special sauce. Jim Skinner, McDonald?s chief executive explained, ?We
got distracted from the most important thing: hot, high-quality food at a great value at the speed
and convenience of McDonald?s.?
In 2003, McDonald?s implemented a strategic effort called the ?Plan to Win.? The framework,
which still exists today, helped McDonald?s restaurants refocus on offering a better, higher-quality
consumer experience rather than a quick and cheap fast-food option. The Plan to Win ?playbook?
provided strategic insight on how to improve on the company?s 5 Ps ? people, products,
promotions, price, and place ? yet allowed local restaurants to adapt to different environments and
cultures. For example, McDonald?s introduced a Bacon Roll breakfast sandwich in the United
Kingdom; a premium M burger in France; an egg; tomato and pepper McPuff in China; and a
McAloo Tikki burger in India. Prices also varied slightly across the United States to better reflect
different tastes in different regions.
Some food changes that helped turn the company around included offering more chicken options as
beef consumption started to decline, selling milk in a bottle instead of a carton, and removing
?Super Size? options after the documentary Super Size Me targeted McDonald?s and its link to
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Page 1 of 3
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 1 ? EXAMINATION ? SUMMER 2019
Subject Code: 3519206 Date:21/05/2019
Subject Name: Fundamentals of Marketing
Time: 02:30 PM To 05:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q. No. Marks
Q.1 Explain following terms:
(a) Competitive Advantage
(b) Integrated Marketing Communication
(c) Targeting and Positioning
(d) Conformance Quality
(e) Experience Curve
(f) Holistic Marketing
(g) Differentiate warranties and guarantees
14
Q.2 (a)
Explain concept of maximizing Customer Lifetime Value.
07
(b) Explain marketing research process and also give your insights on
how to overcome barriers to the use of marketing research.
07
OR
(b) Discuss the different methods of estimating current demands with the
help of examples.
07
Q.3 (a) Explain stages in buying process in brief in context of consumer
markets.
07
(b)
Discuss distinctive characteristics of services and also discuss categories
of service mix.
07
OR
Q.3 (a)
A relation between consumer psychology and pricing cannot be ignored.
Discuss procedure of setting price in this context.
07
(b) Write a brief note on initiating and responding to price changes. 07
Q.4 (a) Explain the roles of marketing channels. 07
(b) You being marketing head of Textile Company is given a task of
segmentation; which basis of segmentation you will choose and why?
07
OR
Q.4 (a) What do you understand by Vertical marketing system (VMS)?
Discuss its various types with real life example(s).
07
(b) Define channel conflicts. Explain the sources of channel conflicts in
brief.
07
Page 2 of 3
Q.5 Case Study
McDonald?s is the world?s leading hamburger fast-food chain, with over 32,000/- restaurants in
118 countries. More than 75 percent of McDonald?s restaurants are owned and operated by
franchisees, which decreases the risk associated with expansion and ensures long-term tenants for
the company. McDonald?s serves 58 million people each day and promises a simple, easy and
enjoyable food experience for its customers.
The history of the McDonald?s Corporation dates back to 1955 when Ray Kroc, a multimixer
salesman, franchised a hamburger restaurant from the McDonald brothers, named it McDonald?s,
and offered simple foods such as the famous 15 cent hamburger. Kroc helped design the building,
which featured red and white sides and a single golden arch to attract local attention. Ten years
later, 700 McDonald?s restaurants existed around the country, and the brand was on its way to
becoming a household name.
During the 1960s and 1970s, Kroc led McDonald?s growth domestically and internationally while
pushing the importance of quality, service, cleanliness and value. The menu expanded to include
the Big Mac, Quarter Pounder, Happy Meal, Filet-O-Fish, and breakfast items like the Egg
McMuffin. Kroc also understood early on that his core audience consisted of children and families.
Therefore, he focused McDonald?s advertising efforts at these groups and introduced Ronald
McDonald in 1965 during a 60-second commercial. Soon, characters such as Grimace, the
Hamburgler, and Mayor McCheese made their debut in McDonald?s advertising campaigns and
helped lure children into its restaurants for simple, good-tasting food, and a fun experience.
It was also during this time that McDonald?s created the Ronald McDonald House, which opened
in 1974 to help children with leukemia. Since then, it has expanded into a global charity effort
called Ronald McDonald House Charities that strives to improve children?s lives, health and well-
being through three major programs: Ronald McDonald House, Ronald McDonald Family Room,
and Ronald McDonald Care Mobile.
McDonald?s aggressively expanded overseas throughout the 1980s by adding locations throughout
Europe, Asia, the Philippines, and Malaysia. This rapid expansion, however, led to many struggles
during the 1990s and early 2000s.The company lost focus and direction, expanding by as many as
2,000 new restaurants a year. New employees weren?t trained fast or well enough, all of which led
to poor customer service and dirtier restaurants. New competitors popped up and the company
acquired nonburger companies, Chipotle and Boston Market (which were eventually sold in 2006
and 2007). Consumer tastes changed, and new products like pizza, the Arch Deluxe, and deli
sandwiches failed to connect with consumers, as did tweaks to the current menu including multiple
changes to the Big Mac special sauce. Jim Skinner, McDonald?s chief executive explained, ?We
got distracted from the most important thing: hot, high-quality food at a great value at the speed
and convenience of McDonald?s.?
In 2003, McDonald?s implemented a strategic effort called the ?Plan to Win.? The framework,
which still exists today, helped McDonald?s restaurants refocus on offering a better, higher-quality
consumer experience rather than a quick and cheap fast-food option. The Plan to Win ?playbook?
provided strategic insight on how to improve on the company?s 5 Ps ? people, products,
promotions, price, and place ? yet allowed local restaurants to adapt to different environments and
cultures. For example, McDonald?s introduced a Bacon Roll breakfast sandwich in the United
Kingdom; a premium M burger in France; an egg; tomato and pepper McPuff in China; and a
McAloo Tikki burger in India. Prices also varied slightly across the United States to better reflect
different tastes in different regions.
Some food changes that helped turn the company around included offering more chicken options as
beef consumption started to decline, selling milk in a bottle instead of a carton, and removing
?Super Size? options after the documentary Super Size Me targeted McDonald?s and its link to
Page 3 of 3
obesity. McDonald?s responded to health trends and began offering premium salads as well as
apple slices instead of French fries in Happy Meals as well as all-white-meat McNuggets. While
many of the healthier options targeted moms and held a premium price, McDonald?s introduced the
$1 menu at the same time, which targeted the lower-income bracket and teenagers. Other responses
included improving drive-thru service since 60 percent of McDonald?s U.S. business came from
drive-thrus, introducing more snack options, and refurbishing restaurants with leather seats,
warmer paint colors and flat-screen TVs. Initial results were staggering; from 2003 to 2006, the
stock price increased 170 percent. Sales continued to increase through the late 2000s and topped
$23.5 billion in 2008, making McDonald?s one of only two companies in the Dow Jones Industrial
Average whose share price rose in 2008.
Mc. Donald?s continued to flourish in 2009, led by its premium Angus burgers and its McCafe
coffee line, which directly targeted competitors like Starbucks with less expensive specialty coffee
drinks. McDonald?s also launched a worldwide repackaging effort as a result of intense consumer
research. The new packaging aimed to accomplish several tasks, including teaching consumers
about McDonald?s health consciousness and building awareness of its use of locally grown
produce. It included bold text and full-color photographs of real ingredients like potatoes on French
fry packaging and vegetables, cheese and cooking utensils on hamburger packaging. Mary Dillon,
McDonald?s global chief marketing officer, explained that the goal is to ?create unique
personalities for our menu items by telling a story about each one.?
Through the years, McDonald?s has created a number of successful marketing campaigns and
slogans such as ?You Deserve a Break Today,? ?It?s a Good Time for the Great Taste of
McDonald?s,? and ?Food, Folks, and Fun.? Its current campaign, ?I?m Lovin? It,? seems on track
to join the others by helping the company reach record sales and growth despite difficult economic
times.
Answer the following questions:
Q.5 (a) Discuss the adequacy of existing product offering of the McDonald?s in today?s
competitive environment. 07
Q.5 (b) Discuss the Segmenting, Targeting & Positioning strategy of McDonald?s. 07
Or
Q.5 (a) If McDonalds?s want to enter into other product categories, which different other products
you would suggest? Why? 07
Q.5 (b) Identify the weaknesses of McDonald?s and suggest measures for its improvement. 07
*************
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This post was last modified on 19 February 2020