Lecture 34 : Sample Question & Answers

Hello, welcome back to our last and bonus session on B2B marketing with technology focus. As I promised in the previous session, here today we are going to show you a series of questions and the right answers as an indication, as a preview of the kind of questions you can expect at the final examination. In fact, if you pay good attention to this session, you may find some of these questions repeated in your final question paper. So, it is kind of a small help session or key to your examination. I am going to present to you now the first question in this Q and A session, question number 1 and the question says in the technology adoption life cycle TALC, which particular group prefers proven solutions and is typically cautious about adopting new technology. You should be able to answer this immediately, because the options given to you are pragmatists, technophiles, visionaries and conservatives. So, obviously, the group which prefers proven solutions and the typically very cautious are the pragmatists. So, option A is highlighted. Let us take the second question. The second question says that which of the following best defines substantiality. As you know substantial means large, significant, big. So, which of the following best defines substantiality in the context of market segmentation? Options are the ability to measure the size and purchasing power of a segment, the accessibility of a segment in terms of geographic location, the proportion of the total market represented by a segment, the willingness of customers within a segment to respond to marketing efforts. So, obviously, substantiality will relate to option C, which is the proportion of the total market represented by a segment. So, the bigness of in the context of segmentation relates to the proportion of the total market represented by a segment. Question 3, in the context of forecasting, what do time horizons primarily refer to? Options are A, the periods over which predictions are made, B, the accuracy of forecasted data, C, the geographical regions covered by the forecasts, D, the variability of market conditions. Obviously, B, C, D are not the right answers. The right answer is A. The period over which predictions are made is another way of talking about time horizons of forecasts. Question 4, margin per unit equals demand into sales, price minus fixed unit cost, price minus total unit cost, price minus variable unit cost. Do not get confused. The right answer is price minus variable unit cost is the margin per unit. Because as you know that the margin we want to calculate because that will lead us to the break even quantity. So, the fixed cost, total fixed cost divided by the margin per unit gives us the break even quantity. So, margin per unit equals price minus variable unit cost. Question 5, how are brands or products typically plotted on a perceptual map? So, the key is perceptual map. So, the perceptual map, does it show geographical distribution? Is the perceptual map according to the pricing strategy? Does it show relative to the perceived position on important attributes or based on the year of establishment? So, obviously A, B and D are not the right answers. The right answer is C, that is brands or products are typically plotted on a perceptual map relative to their perceived position on important attributes. Question 6, in the new product development process, which approach involves extensively engaging both existing and potential customers? Options are marketing approach, production oriented strategy, technology driven approach, engineering focused philosophy. So, we are talking about existing and potential customers. So, obviously option A is the right option because in the marketing approach, we involve extensively both existing and potential customers. Customers are closely related to marketing that should give you the clue to the right option in this case. Which pricing tactic involves offering reductions in price for specific reasons with the caveat that it may lead to customers becoming dependent on them? Options are value based pricing, discounts and allowances, penetration pricing, cost plus pricing. Obviously, the choice is discounts and allowances option B. Let us take the next question, short one and easy one. Which of the following is a source of company's differentiation advantage? Differentiation as a strategy as you know is different from the cost oriented strategy. Differentiation is where we distinguish with respect to others. So, we have product quality, market share, marketing, budget, sales revenue. So, A product quality is the right answer. Question 9, little long, but easy actually. A sales representative at a technology firm regularly interacts with both internal departments and external clients to ensure smooth communication and address any issues that arise. The representative often gathers feedback from clients and relays it to product development team, ensuring that client needs are met in future updates. The role helps to bridge the gap between the company and its clients, fostering strong relationship and improving customer satisfaction. What role is this? What role is the sales representative fulfilling in this scenario? Options are customer service representative, marketing representative, marketing analyst, boundary personnel, operations manager. The right answer obviously, we have again and again discussed during the sessions that marketing performs a boundary role. Boundary that means, marketing operates in the boundary between the internal departments and the external world. So, that is why we talked about the boundary function, boundary role of the marketing department. That is the subject matter of this question. Question 10, during a marketing campaign Ramaya finds herself overwhelmed by the sheer volume of advertisement she encounters daily. To manage this, she focuses only on ads that provide relevant information about products she is interested in, ignoring the rest. Which concept best explains Ramaya's behavior? We discussed this in the context of marketing communication and the options given to you are selective attention, selective retention, selective exposure, selective perception. The obvious answer is option A, which means selective attention. So, Ramaya pays selective attention to the relevant information that interests her and she ignores the others. So, that is actually selective attention. Question 11, as you see these questions are not in the order of our lectures, but they are from coming from all different domains. So, which sales force compensation method is best suited for encouraging increased selling effort while also meeting management's need for the sales staff to perform administrative duties? So, we are talking about that particular compensation method that encourages on one hand increased sales effort. So, the reward system has to encourage more and more sales effort. At the same time we want sales people to provide service for internal functions. So, out of the four options of straight commission, straight salary, combination plan, performance bonus our option will be C combination plan. Question 12, Maxima services an organization has a 10 percent share of a rupees 250 crore market. Maxima realizes a 20 percent margin in sales and their marketing sales and admin expenses equal 10 percent of sale. What is Maxima's net market contribution? Options are 250 crores, 25 crores, 5 crore, 2.5 crore. Now, as you see the total market is 250 crore Maxima has 10 percent share. Therefore, they are addressing a market of 25 crore realizes 20 percent margin spends 10 percent. So, you have 10 percent as the net market contribution. So, 10 percent of 25 and that is the option D 2.5 crore that is Maxima's net market contribution. We have of course, given you the solution with in detail. So, in a very easy to understand fashion because the sales revenue of Maxima is market share into total market. So, that is 10 percent of 250 that is 25 crores. Gross profit is sales revenue into margin 25 crores and 5 percent of that is 5 crores because that we have this 20 percent margin is our of 25 crores. So, 5 crores expenses sales revenue into expense percentage. So, that is 2.5 crores. So, 5 minus 2.5 is 2.5 crores. This is a more laborious for you to straight away get to it is 250 crore total market 10 percent of that is Maxima's market 25 crores 20 percent minus 10 percent is 10 percent. So, 10 percent of 25 is 2.5 easy to understand which of the following strategies is most critical for optimizing warehousing efficiency in logistic system implementing advance customer service protocols to enhance client satisfaction option B utilizing real time logistics communication tools option C adopting warehouse automation and management system to streamline storage and retrieval processes option D establishing strategic transportation routes to reduce delivery time. Now we are talking about optimizing warehousing efficiency and therefore, obviously, we are talking about option C which is adopting warehouse automation and management system to streamline storage and retrieval processes question 14 a manufacturer of industrial machinery is considering participating in an e-marketplace what primary advantage does the e-marketplace offer from the sellers perspective options are access to detail market analytics and competitor pricing option B ability to bid on tenders and secure government contracts option C platform to list new and used products for a global audience option D opportunity to post requirements and search for new supplies we are talking about the primary advantage the e-marketplace offers to an organization. So, the primary advantage is option C which is platform to list new and used products for a global audience. So, the market reach expansion is a primary advantage of the e-marketplace and so option C is your right answer. Question 15 says a company excels in offering products at significantly lower prices due to their efficient production processes and distribution methods they focus on targeting early and late majority customers by providing a superior combination of quality price and ease of purchase this strategy is the strategy of a product leader option A strategy of a fast follower option B strategy of a differentiated defender option C and strategy of a high cost defender option D. Obviously, the answer is C which is differentiated defender because the company is differentiating itself by way of combining quality price and ease of purchase. So, they are distinctive by offering this differentiation and that is their strategy archetype a marketing mixed strategy differs from a strategic market plan in that a marketing mixed strategy A is a long term strategy it needs to be reviewed each year it has a 3 to 5 years time horizon has no specific time horizon. Obviously, the answer will be B because a marketing mixed strategy is a tactical mix and it needs to be reviewed frequently because it must response to the current situation very promptly. So, marketing mix is not a long term strategy it does not have a 3 to 5 years horizon. So, B is the right answer which of the following best describes the role of advertising in breakthrough innovation marketing interaction A to identify needs and develop products based on those needs. We are looking at role of advertising in breakthrough innovation marketing option B is to build brand image and create customer awareness option C is to conduct surveys and focus groups to gather customer feedback and D is to educate customers on how to use a new technology. So, advertising in breakthrough innovation and marketing interaction in that context obviously, will be for building brand image and create customer awareness particularly the second part of the answer because a creating of the customer awareness is a key role that advertising can play at the breakthrough stage. So, B is your right answer question 18 which of the following is true for the introduction stage of PLC A promotion costs are low and sales are low distribution costs are high and sales are high. Now, remember the introduction stage of PLC low sales obviously, therefore low profits because of the low volume the distribution costs are high. So, option C supply chain profits are low and distribution costs are high this is the correct answer because at the introduction stage definitely the promotion sales are low, but promotion costs are not low distribution costs are high, but sales are not high promotion costs are high, but sales are not high. So, C supply chain profits are low and distribution costs are high is the right answer question number 19 which of the following scenarios best illustrates industrial marketing communication or industrial mark com a retail store organizing a promotional event a construction equipment manufacturer participating in an industry trade show a manufacturing company sending personalized emails to potential customers a food delivery service launching a new advertising campaign targeting households. So, industry trade shows are major approaches to industrial marketing communication. So, therefore option B is the right answer highlighted here in front of you. Now, we come to question 20 which aspect is crucial for managing moments of truth effectively in marketing. Now, remember moments of truth occur when customers come in contact with the organization. So, options given to you are ensuring consistency across all customer interactions with the company implementing marketing campaigns with high reach and frequency achieving cost effective pricing strategy conducting extensive market research. So, A which is ensuring consistency across all customer interactions with the company obviously will be the right answer for managing moments of truth effectively which of the following activities best represents the marketing mix element called promotion options are a company offering discounts on its products to loyal customers a company determining the optimal pricing strategy company deciding on the distribution channel for its products company launching a new advertising campaign to increase brand awareness obviously the last one option D is the right answer because advertising campaign directly connects to promotion or marketing communication what is the first stage in the QFD multistage process quality function deployment or QFD does it collect customer perceptions of competitive products does it transform data into design requirements identify gaps or opportunities in the market collect the voice of the customer now mark the question what is the first stage. So, both all the options A B C and D relate to QFD activities, but option D which is collecting the voice of the customer is the first stage. So, you have to always therefore, carefully read the question statement and note do not miss the operative part like for example, here all the 4 options are stages in the QFD activity, but the first stage is collecting the voice of the customer this question says which stage of the new product development process involves evaluating potential ideas based on predefined criteria to filter out those with less potential. So, new product development process we are looking at product ideas and which process involves filtering out. So, options given to you are product screening idea generation business case analysis test market all 4 are related to the new product development process all 4 options, but A product screening is that relates to filtering out of ideas with less potential we are coming towards the end of our presentation on possible questions and answers giving to give you an idea of what kind of questions you will face and how you will answer. So, you have to answer simply by from the multiple choice you have to make the right choice. So, it is just tick, tick, tick, but you have to very carefully read the question statement very carefully read the options to make that selection. So, do not be in a hurry you will have lot of time adequate time to answer all the questions given to you which statement best describes the key difference between visionaries and pragmatists in the adoption and diffusion of innovation. A visionaries are adventurous and willing to spend big to be the first in implementing new ideas while pragmatists are prudent budget conscious and make slow steady progress B visionaries are risk averse and prefers established technologies C visionaries focus on incremental improvements within their budget D visionaries are pragmatists both prefer visionaries and pragmatists both prefer to avoid new technologies we know that B C D are not the right answers the right answer is visionaries are adventurous and willing to spend big to be the first in implementing new ideas while pragmatists are prudent budget conscious and make slow steady progress. The last couple of questions question 25 which of the following statement is true for B to B marketing A the first step in developing brand identity is to focus on product features rather than customer benefits. Obviously, this is not correct because we have again and again saying the whole purpose of B to B marketing is to create the develop the value proposition focus on customer benefits and internally focus business is best prepared to build a useful brand identity good brands offer solutions to customer problems product colors are most important for industrial brands C which is just kind of the opposite of the option A that good brands offer solutions to customer problems because customer focus is the key in B to B marketing question 26 Kumar recently purchased a new electric car from a well known brand that is celebrated for its environmental sustainability and advanced technology after using the car for a few months Kumar notice that the brand customer service team promptly addresses any concern he has and the cars performance consistently meets his expectations he feels reassured that he made a wise investment in a reliable and innovative vehicle question is which aspect of customer brand equity is demonstrated in this Kumar scenario brand loyalty brand awareness post purchase equity brand association recall our discussion what happens after purchase the post sales scenario contributes if positively handled towards post purchase equity which ultimately builds up pre purchase equity. So, in our case here in this question C is the right option that this happy situation of Kumar having bought the right car and having a positive experience post sales builds post purchase equity. So, that completes our cluster of sample questions and answers. And I wish you good luck in your coming examination and I hope this course contributed to your knowledge for B to B marketing with technology focus. Thank you good luck bye.