List of most frequently asked Interview Questions and Answers on Marketing and Marketing Management! Learn about:
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Marketing Interview Questions And Answers
Interview Question # Q.1. What is the meaning of market?
Ans. The word ‘market’ is derived from the Latin word “Marcatus” meaning goods or trade or a place where business is conducted. Traditionally market refers to a physical location where buyers and sellers gather to exchange their goods. In the market, ownership and possession of products are transferred from the seller to the buyer and money acts as a medium of exchange and measure of value.
Economists describe a market as a collection of buyers and sellers who transact over a particular product or service. Marketers view sellers as the industry and the buyers as the market. Business people use the term market to refer to various grouping of customers such as Product market (Example- Television market), Geographic market (Example- African market) or Non customer group such as Labour market.
However the term has a wider meaning and it is not confined to a particular area or place where buyers and sellers meet to exchange goods. It is now generally used to mean any body of persons who are in intimate business relations and carry on extensive transactions in any commodity.
Let us see a few definitions of market:
According to Philip Kotler, “A market consists of all the potential customers showing a particular need or want who might be willing and able to engage in exchange to satisfy the need or want.”
According to William J. Stanton, “A market may be defined as a place where buyers and sellers meet, goods and services are offered for sale and transfer of ownership occurs.”
The American Marketing Association defines a market as “the aggregate demand of the potential buyers for a product or service.” The term market as a group of persons is also used to represent the total customer demand. In this sense, market means people with needs to satisfy, the money to spend and the will to spend money to satisfy their wants.
It is quite clear from the above definitions, that “Market” does not necessarily mean a physical place. It is an area in which forces of demand and supply operate directly or by means of any kind of communication to bring about transfer of the title of the goods.
Interview Question # Q.2. What are the types of consumer goods?
Ans. Prof. M.T. Copeland developed three-fold classification of consumer goods based on typical buying habits of consumers, i.e., how, when and where consumers usually buy commodities.
The three categories of consumer goods are-
(1) Convenience goods,
(2) Shopping goods,
(3) Speciality goods.
Interview Question # Q.3. What is durable and non-durable products?
Ans. As the term suggests, durable products offer tangibility and durability. Non-durable products are normally consumed fast and purchased regularly.
(1) Fast moving consumer goods usually refer to non-durable products. They are also known as Consumer Packaged Goods. Normally consumers spend less time and effort in buying these goods. FMCG includes a variety of products such a soap, biscuit, shampoo, toothpaste, talcum powder etc. They are relatively high volume and low value products.
They are a large number of stock keeping units to meet the needs of consumers. Packaging plays a major role in attracting the attention of consumers. The capital investment in setting up a factory is low and major investment is in brand promotion and distribution. Launching a new product requires heavy investment and the marketer has to continue to focus on 4Ps to fight competition and achieve desired volumes and profits.
(2) Consumer durables are tangible goods and are used over an extended period of time. They are purchased once in a few years. Examples- TV, Refrigerator etc. The consumer spend lot of time in collecting information about various brands/models, discusses with neighbours and friends, check the prices from various outlets before making purchase decisions. The consumers are concerned about perceived risk and after sale service. Therefore, personal selling and after sale service play an important role in selling consumer durables.
Interview Question # Q.4. What are the benefits of marketing concept (Market-Oriented Approach)?
Ans. A business enterprise adopting the market-oriented business approach can enjoy the following advantages:
1. Long-term success is assured to an enterprise only if it recognises that the needs of the market are paramount.
2. It enables the firm to move more quickly to capitalise on market opportunities. Marketing risks can be reduced only by knowing and understanding the market.
3. Customer needs, wants and desires receive top consideration in all business activities.
4. Greater attention is given to the product planning and development so that merchandising can become more effective.
5. Demand side of the equation of exchange is honoured more and supply is adjusted to changing demand. Hence, more emphasis is given to research and innovation.
6. Marketing system based on the marketing concept assures integrated view of business operations and indicates interdependence of different departments of business organisation.
7. Interests of the enterprise and society can be harmonised as profit through service is emphasised.
8. Marketing information and research is now an integral part of the marketing process and it is a managerial tool in decision-making in the field of marketing.
Interview Question # Q.5. What are the consequences of marketing concept?
Ans. Company makes what it can sell. The focus is now on customer needs and market opportunities. Product line becomes broad. Pricing is based on perceived benefits provided. Market research enables company to focus on opportunities and applying new technology to satisfy customer needs.
Packaging becomes a useful tool of promotion and is designed for customer convenience. Credit becomes a customer service and a tool to attract customers. Promotion now emphasises product benefits and aims to solve customer problems. The adoption of marketing concept sincerely can easily act as the best response of business to consumerism.
Under market concept there is a shift:
1. From product/business to customer,
2. From production to market,
3. From supply to demand,
4. From sales volume to profit,
5. From mere selling to customer satisfaction,
6. From internal orientation to external orientation,
7. Under marketing concept, supply becomes the function (result) of demand. Demand is the controlling factor and demand analysis becomes the foundation of all marketing functions.
8. We have four aspects of an intelligent demand management- (a) demand determination through marketing research, (b) product-mix as per demand, (c) promotion-mix to stimulate demand, and (d) distribution mix to serve demand.
9. Marketing concept is applicable to any organisation — profit/non-profit, and
10. Marketing concept can eliminate marketing myopia.
Marketing concept will have an appreciable effect on the company whose management is customer-oriented and whose organisation is customer-centred. The general management of the company will be market-oriented and its marketing management will become the corner-stone. The organisation of the entire enterprise will become market-oriented. The marketing plan as well as the business plan of such a company will have customer-oriented approach.
Interview Question # Q.6. Define marketing research!
Ans. The American Marketing Association defines marketing research as follows:
Marketing Research is the function which links the consumer, customer, and public to the marketer through information- information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process.
Marketing Research specifies the information required to address these issues; designs the method for collecting information; manages and implements the data collection process; analyzes the results; and communicates the findings and their implications.
Interview Question # Q.7. What are the advantages and disadvantages of direct and indirect export?
Ans. If a comparison between direct and indirect export is made, what is an advantage for the former becomes a disadvantage for the latter, and vice versa.
In direct export, the company gets a larger income yield capacity, because there is no need to pay retribution to any intermediary located in the market of origin to facilitate the operation. This approach allows a greater control of the marketing channel, since it is the company, deploying its own resources, the one that gains access to external markets.
This factor enhances a learning capability and operative and commercial functioning of external markets feedback. But, in turn, direct export has a higher risk for the organization, especially when it does not have enough experience in world markets commerce and marketing.
Indirect export allows the company to have access to international marketing, totally or partially delegating the following undertakings to a third party- detection of business opportunities, international offer and negotiation, operative and documentary procedures, and management of financing instruments.
This intermediary possesses know-how on those aspects and qualified experience in global markets, virtues that are not generally typical of the companies that require its services. In indirect export, the company outsources the process totally or partially, leaving the activities mentioned in the hands of intermediation, thus reducing the risk and uncertainty implied by internationalization.
When indirect export structures are frequently used, the organization may obtain a null or poor learning about international market operation, because that information is concentrated on the structures of the assisting companies.
There are some exceptions to this, like is the case with export consortia in which, although there exists an indirect export channel, consortia members participate in export strategy decisions. Generally, indirect export is frequently used by companies in the occasional or experimental export stage, not consolidated in the external market.
Interview Question # Q.8. Define marketing environment!
Ans. Marketing environment means the market situation/atmosphere within which a business enterprise has to operate. The marketing environment has been defined in a variety of ways. According to Philip Kotler, “the company’s marketing environment is made up of the sectors and forces outside the firm’s marketing function which infringe upon the ability of marketing management to develop and maintain a successful relationship with the firm’s target audience.”
Marketing environment is the sum total of political, economic, social, technological and other forces which move around the business enterprise. Marketing environment changes due to various, external forces and marketing department has to be operate under such dynamic environmental conditions.
A firm is exposed to both external and internal environments. The internal environment consists of company’s resources such as production, finance, HR, research and development, location and image.
External environment has two distinct components:
1. The Micro-environment and
2. The Macro-environment,
1. Micro-Environment:
It affects a particular firm and consists of Consumers, Marketing intermediaries like Distributors, Wholesalers, Dealers, Suppliers and Competitors.
2. Macro-Environment:
It affects all the firms and include Demographic factors, Economic conditions, Social and cultural forces, Political and Legal forces, Technology and Ecological factors.
Interview Question # Q.9. What is the importance of environmental analysis in marketing?
Ans. The Marketing Manager needs to be dynamic to deal effectively with the challenges of environment. The business environment is not static and it is changing continuously.
The following are the benefits of environment scanning as suggested by various authorities:
1. It creates an increased general awareness of environmental changes on the part of management.
2. It guides with greater effectiveness in matters relating to Government.
3. It helps in marketing analysis.
4. It suggests improvements in diversification and resource allocations.
5. It helps firms to identify and capitalise upon opportunities rather than losing out to competitors.
6. It provides a base of ‘objective qualitative information’ about the business environment that can subsequently be of value in designing the strategies.
7. It provides a continuing broad-based education for executives in general, and the strategists in particular.
Interview Question # Q.10. Should we target large segments or small segments?
Ans. Large firms generally have greater resources than small firms; a large firm that segments/targets well is difficult to beat. But market segmentation/targeting can even the odds for smaller firms. Many large firms have difficulties with market-segmentation decisions — internal constituencies disagree; decision-making is protracted; resources are spread too thin over many segments. Smaller, more focused competitors are able to gain advantage.
Sometimes small firms win when larger firms ignore, reduce service to, withdraw from less attractive (for them) market segments. Small firms with limited resources enjoy focus advantages; in targeting fewer segments, they build strong customer relationships, almost by default.
But they may face other problems:
i. Demand Shortage:
A firm addressing few segments has little cushion against demand reduction in any one segment.
ii. High Costs:
Narrow focus typically implies higher costs; high prices may not offset.
iii. Too Successful:
Success attracts attention from major players; they enter and devastate the small firm. Alternatively, success in a small segment may lead a large firm to acquire the small firm. Such acquisitions significantly enrich the small firm’s shareholders.
Marketing Executive Interview Questions And Answers
Interview Question # Q.11. What are the elements of product positioning?
Ans. There are four variables that affect the positioning of a product in the market:
(a) Product:
The marketer has to differentiate the product from that of competition to create a lasting impression in the mind of the customer. The product can be differentiated based on features, performance, durability, reliability, repair ability, style, and design. Examples- Car buyers pay a premium for the look of the car. Housewives like to have kitchen appliances that are long-lasting.
Brand Parity:
When consumer believe that most brands offer the same set of features, the result is called Brand parity. The consumers will purchase from a group of accepted brands rather than one specific brand. When brand parity is present, quality is not a major issue since consumers believe that very minor differences exist.
Therefore, they make purchases based on other criteria like price, availability of brand and promotional offer and brand loyalty suffers. In such cases, the marketer should create messages informing how the product is distinct and different from competition.
(b) Company:
A strong company profile increases the image of the product. Examples- Tata salt, Amul butter, Nestle coffee.
(c) Competition:
Product positioning is carried out in relation to competitive products. Generally, consumers judge a product in comparison to dominant brand. Examples: Toothpaste with Colgate, photocopier with Xerox.
(d) Consumers:
Positioning is based on the perception of the consumer rather than factual evaluation of the product. Therefore, the marketer has to understand the profile of the target consumer for effective positioning of the product. Example- Lux soap- “Beauty soap of film stars”.
Interview Question # Q.12. What is marketing information system (MIS)?
Ans. Marketing information includes all facts, estimates, opinions and other information used in marketing decisions that affect the marketing of goods and services. Marketing management needs essential information regarding products, prices, market conditions of demand and supply, consumer needs and desires, market competition, middlemen, selling methods, information regarding physical flow of goods (transportation, warehousing, and inventory) and also regarding other elements of marketing-mix.
We need a good marketing information system continuously as an on-going process to facilitate sound marketing decisions on marketing plans, policies and programme.
Marketing Information System is defined as “a set of procedures and methods for the regular and planned collection, analysis, and presentation of information in making marketing decisions.” — (K. Cox and R. Good)
According to William Stanton “Marketing information system (MIS) is an ongoing, organised set of procedures and methods designed to generate, analyse, disseminate, store and retrieve information for use in making marketing decisions.”
The definitions highlight the following about MIS:
(a) Basically, Marketing Information System is an interacting, continuing, future-oriented structure of persons, machines, and procedures designed to generate an orderly flow of information collected from internal and external sources, for uses as the bases for managerial decision-making in any area of company’s marketing management.
(b) A Marketing Information System continuously gathers data, i.e., facts and figures from the internal and external sources of information. Then, this information is sorted out, classified, analysed, and stored for future reference.
(c) The stored information can be recalled or restored immediately for reference in the form required for decision-making by marketers.
(d) It is a systematic gathering, processing and storing potentially useful information and presenting it in the most usable form for decision-making process. It provides non- interrupted supply of information for decision-making.
Interview Question # Q.13. What is the scope of marketing research?
Ans. Marketing research has wider meaning and scope. Marketing research is the systematic gathering, recording and analysing of data about problems connected with the market place, i.e., problems relating to product, price, promotion, and distribution of the 4 Ps of the marketing-mix.
Marketing research is said to be moving “away from simple surveys to action-oriented, decision-oriented, problem-solving research.” Reflecting this change in orientation, marketing research may be defined as the scientific and controlled process of gathering of non-routine marketing information helping management to solve marketing problems.
According to Richard D. Crisp “Marketing research is the systematic objective and exhaustive search for and study of the facts relevant to any problem in the field of marketing.”
As per American Marketing Association, Marketing Research “is the systematic gathering, recording and analysis of data about problems relating the marketing of goods and services.”
Marketing research is concerned with all those factors which have a direct impact upon the marketing of products and services. It is the study of any part of the total marketing process. It concentrates on the study of product planning and development, pricing policies, effectiveness of personal selling, advertisement and sales promotion (three wings of marketing communication), distribution structure, marketing strategies, market competition and the entire area of buyer behaviour and attitudes in the market place.
Marketing research is directly interested in offering sound alternative solutions to all marketing problems relating to exchange of goods and services from producer to consumer. Beginning and end of marketing management is marketing research. In a dynamic economy, marketing research acts as the investigative arm of marketing manager — management tool in planning-control cycle.
Interview Question # Q.14. What are the characteristics of marketing research?
Ans. First, marketing research is systematic. Thus systematic planning is required at all the stages of the marketing research process. The procedures followed at each stage are methodologically sound, well documented, and, as much as possible, planned in advance.
Marketing research uses the scientific method in that data are collected and analyzed to test prior notions or hypotheses.
Marketing research is objective. It attempts to provide accurate information that reflects a true state of affairs. It should be conducted impartially. While research is always influenced by the researcher’s research philosophy, it should be free from the personal or political biases of the researcher or the management.
Research which is motivated by personal or political gain involves a breach of professional standards. Such research is deliberately biased so as to result in predetermined findings.
The motto of every researcher should be, “Find it and tell it like it is.” The objective nature of marketing research underscores the importance of ethical considerations.
Marketing research involves the identification, collection, analysis, and dissemination of information. Each phase of this process is important. We identify or define the marketing research problem or opportunity and then determine what information is needed to investigate it, and inferences are drawn.
Finally, the findings, implications and recommendations are provided in a format that allows the information to be used for management decision making and to be acted upon directly. It should be emphasized that marketing research is conducted to assist management in decision making and is not: a means or an end in itself.
Researchers often use more than one research design. They may start with secondary research to get background information, then conduct a focus group (qualitative research design) to explore the issues. Finally they might do a full nation-wide survey (quantitative research design) in order to devise specific recommendations for the client.
Interview Question # Q.15. What are the steps in marketing planning?
Ans. (1) Study of external environment through marketing information and research facilities,
(2) Study of internal environment through sales audit and cost analysis,
(3) Determination of overall mission and goals,
(4) Assessing marketing opportunities,
(5) Determination of company objectives,
(6) Laying down company strategies,
(7) Fixing specific marketing objectives,
(8) Developing marketing strategies in each area of marketing-mix,
(9) Integrating marketing- mix and providing time-bound marketing programme, and
(10) Implementing marketing plans and marketing controls.
Interview Question # Q.16. What is the importance of product analysis and research?
Ans. In marketing, product analysis and research is a study of consumer preferences and habits as well as dealer preferences and habits relating to a given product. Such a study can determine the extent to which the product should be altered, modified or adapted to meet exactly the existing demands of the customers and resellers. The study can also enable us to devise a new product exactly needed in the market.
Intelligent market analysis and research can dictate the taste, colour, size, shape, style, performance and such other specific features on the basis of customer whims, fancies, and preferences. On the basis of such reliable information about customer demand, a manufacturer can bring out a tailor-made product having all the elements in exact tune with the needs, wants, and expectations of customers.
Interview Question # Q.17. What is base price?
Ans. Pricing decisions are guided by overall organisational objectives. A base price is usually established, and adjustments from that base price is made to ensure closer correlation between the product of the firm and consumer wants and desires, i.e., matching the product-offering with the expected bundle of satisfactions (perceived value by consumer).
A base price acts as a reference price. It is a price from which actual prices can be determined by adding extras and deducting discounts. The actual prices reflect differentials from the base price because of market structure, geographical location, competitive conditions, and the terms of individual transactions.
Interview Question # Q.18. What are the features of advertising?
Ans. 1. A message to large groups.
2. Non-personal communication (i.e., not delivered by actual person and not addressed to a single person).
3. Persuades the buyers (i.e., a type of persuasion).
4. Paid form of publicity (paid for by advertisers to publisher).
Interview Question # Q.19. What is branding?
Ans. It is the process of assigning a distinctive name to the product by which it is to be known and remembered. A brand may be a name, symbol, design, photograph or a combination there of that helps to differentiate a product from the competitive products. When the brand is registered under the Trade and Mercantile Marks Act, 1958, it becomes a trademark, e.g., Lux, Singer, Philips, LG, BPL are example of brands.
(i) It helps the consumer to identify and recognize the product.
(ii) It helps in differentiating your product from the rival products.
(iii) It is the basis of advertising and other techniques of mass selling.
(iv) Branding ensource uniform standards of quality and design to consumers.
Interview Question # Q.20. What is packaging?
Ans. It refers to wrapping of goods before they are transported, stored or delivered to a consumer.
Functions/Advantage of Packaging:
(i) Product protection- Package protects the products. Package prevents breakage, contamination, insect attack etc.
(ii) Product container- Package means just using the space in which a product will be contained. Ordinary packing in the form of throw away containers is the example.
(iii) Product attractiveness- The size and shape of the package its color, printed matter on it etc., make the package attractive to look at. Psychological feeling is that a good package contains good quality in it.
(iv) Product identification- Packages differentiate similar products. Packaging and labelling are inseparable and are closely related to branding. Package has more significance when the product cannot be seen by the buyer, e.g., packed milk, fruit juice etc.
(v) Effective sales tool- A good package stimulates sales. A well designed and attractive package invites customers.
Sales And Marketing Interview Questions And Answers
Interview Question # Q.21. What is pricing policy? What are the types of pricing policies?
Ans. Price may be defined as the exchange of goods or services in terms of money. Without price there is no marketing in the society. If money is not there, exchange of goods cannot be undertaken. The pricing decision of a company depends on many factors like-
(i) Marketing mix
(ii) Cost of the product
(iii) Objective/goals of the company
(iv) Demand of the product
(v) Competition
(vi) Buyers
(vii) Govt. policy
(a) Skimming Pricing Policy:
It involves a high introductory price in the initial stage to skim the cream of demand. The products when introduced in the market have a limited period free from other manufactures. During this period, it aims at profit maximization according to the favorable marketing condition.
(b) Penetration Pricing Policy:
A low price is designed in the initial stage with a view to capture greater market share. Because of low price the sales volume increases and competition falls down.
(c) Zone Pricing Policy:
Under this, the company divides the market into zones and quotes uniform prices to all buyers who buy within a zone. The price in one zone varies from that of another zone. This is a part of geographical pricing.
Interview Question # Q.22. What are the 5 M’s of advertising?
Ans. (1) Mission- Goal and Objectives,
(2) Money- Amount available to spend,
(3) Message- Message to be sent,
(4) Media- Media to be used, and
(5) Measurement- Evaluation of Results. Advertising must adopt an open and honest communication. It shall never be false, and deceptive; social and legal norms must be duly honoured. It is a Value-based Mass Communication.
Interview Question # Q.23. What are the features of advertising?
Ans. 1. It is a unique means of non-personal or mass communication announcing the sale of goods or services. It can help to introduce a new product quickly.
2. The advertising is non-personal salesmanship performing similar functions like personal salesmanship. It is a silent but forceful salesmanship. It helps to pre-sell a product.
3. It is an openly sponsored sales message regarding any product or service, i.e., the sponsor can be identified.
4. It is a paid communication — paid for by the sponsor (advertiser) to the media owner (seller of advertising space).
5. Advertising message can be addressed to numerous persons at a time — they may be readers, listeners, viewers, collectively called ‘audience’ of advertisement. It has the ability to expose large groups of prospects at a low cost per prospect.
Interview Question # Q.24. Differentiate between advertising and salesmanship?
Ans. 1. Salesmanship is personal, involving direct personal face-to-face communication. Advertising is a non-personal and indirect means of communication with the prospect through various media forms.
2. Salesmanship is individual (person-to-person) communication through personal interview between the salesperson and the prospect. On the other hand, advertising is mass communication, advertiser reaching a large number of prospects simultaneously. An advertisement is read, seen or heard by a number of prospects.
Interview Question # Q.25. Differentiate between the advertising and other forms of publicity?
Ans. 1. Advertising must be carried out by an identified sponsor. Publicity need not have identified sponsor.
2. Advertising is a paid form of communication. Publicity is not a paid form of communication. In a sense, paid publicity is advertising.
Interview Question # Q.26. Differentiate between sale and salesmanship?
Ans. Sale:
1. Voluntary exchange of goods and services between two persons for money or for any other kind.
2. Transfer of a product from one person to another for value.
Salesmanship:
1. An attempt to induce people to buy products.
2. Ability to remove ignorance, doubt and emotional objections concerning usefulness of a product.
Interview Question # Q.27. Differentiate between business and consumer market!
Ans. Business market is very different from the consumer market with fewer large buyers. It leads to close supplier buyer relationship. The business buying requires a professional approach than the consumer buying, as the buyers are well informed. There are several buying influences right from the technical experts to sourcing people to the senior management.
Several buying influences lead to multiple sales calls to close the deal. Generally the buyers are concentrated in a specific geographical area like most of the automobile companies are concentrated in and around Gurgaon, Pune, Chennai and Pantnagar region in Uttarakhand.
The demand in consumer market tends to be a direct demand, while the demand in the business market is a derived demand, which is based on the consumer demand. For example, the major demand for tyres in the business market depends upon the demand of cars by the consumers. The demand in the business market is also inelastic in nature, as the price difference in tyres will not affect the demand of tyres. It is also fluctuating in nature, as the demand is based on the consumer demand and is influenced by market sentiments.
Interview Question # Q.28. Explain the objectives of marketing!
Ans. Marketing is human activity directed at satisfying needs and wants through exchange process. This very definition of marketing indicates satisfying customer needs and wants as the objective of marketing.
The basic objective of marketing is to satisfy the needs and wants of the customers.
However, the overall objectives can be summarized as:
i. To plan and develop the product on the basis of known customer demand.
ii. To increase profits and goodwill of the enterprise.
iii. To organize, direct and control all marketing activities.
iv. To inform the customers and society about the markets.
v. To enable the successful distribution
vi. To supply necessary information for marketing decisions.
Interview Question # Q.29. What do you mean by institutional advertising?
Ans. Institutional advertising is that advertising which is made for creating favourable attitude towards the company and to build company’s goodwill, rather than to sell specific product or service. Institutional advertising does not attempt to sell a particular brand but is done to benefit the organization as a whole. Institutional advertising are also of informative, persuasive and reminder type.
(a) Informative Institutional Advertising overcomes the low key image of the company and helps in building economic base for the company by attracting new industry.
(b) Persuasive Institutional Advertising is used when company wishes to advance the interest of particular institution within a competitive environment.
(c) Reminder Institutional Advertising tries to remind or reinforce the public about the concept, idea and goodwill of the company.
Interview Question # Q.30. What is meant by advertising media? What are the factors determining its choice?
Ans. Every advertiser wants that his advertising message should reach to the target audience effectively and efficiently. Advertising media is a means through which the advertiser communicates his messages to likely consumers to influence them with a view to know and decide about the product or service so advertised. Advertising media can be defined as “the means whereby a manufacturer or producer of goods or services tells the customer about his goods or services”.
Factors Determining Choice of Advertising Media:
Selection of advertising media for communicating message is important task for each organization. Selection of wrong media may results not only in failure of the product but organization too. There is no one best media for all organization. Actual selection of the best media for a particular advertiser depends upon a number of variables.
Some of them are:
i. Nature of Product – The product which is needed by all will encourage mass media like print; broad cast; outdoor and like. While if product needs demonstration television media will be suitable.
ii. Potential Market for Product – Every producer wants that his ad message should reach to prospects economically and effectively. However, to do so, it is necessary to determine the potential market of the product. For example – if the potential market is high income group then magazines and television media is best. While if potential market is low income group then newspaper and radio are suitable.
iii. Budget Availability – Availability of advertising budget is another factor determining choice of advertising media. An adviser with high budget can go for television and film media.
iv. Media Availability – Availability of advertising media is another factor which affect decision regarding choice of media; it is particularly true in case of radio and television as they are not available all over.
v. Characteristics of Media – Certain media characteristics like cost, efficiency; reach or coverage and flexibility etc. also affect the decision regarding choice of advertising media.
vi. Other Factors – Beside above stated factors there are certain other factors such as distribution strategy of organization; advertising objectives; types of selling message etc. which govern the determination of advertising media.
Marketing Interview Questions To Ask Employer
Interview Question # Q.31. Define publicity! What are its features?
Ans. Publicity is similar to advertising, in the sense that both are non-personal form of communication. However, as against advertising, which is a paid form of communication, publicity is a non-paid form of communication. Publicity generally takes place when favourable news is published in the mass media about the product or services.
For example- a manufacturer achieves a break through by developing a car engine, which runs by water instead of petrol this news is covered by television or radio or newspaper in the form of news, it will be treated as publicity.
Thus there are two important features of publicity:
i. It is an unpaid form of non-personal communication; and
ii. There is no identified sponsor for communication as the message goes as a news item.
Interview Question # Q.32. What are the merits of publicity?
Ans. i. More Credibility on Message – As the information is disseminated from an independent source, e.g. the press in form of news stories, the message has more credibility than if it comes as a sponsored message of advertising.
ii. Vast Reach – As the message goes in the form of news, it can reach even to those persons who otherwise may not pay attention to paid communication.
iii. Demerits of Publicity – An important limitation of the publicity is that, it is not within the control of marketing firm. The media could select or cover only that information, which is news worthy.
Interview Question # Q.33. What are the types and functions of packaging?
Ans. On the basis of nature, Packaging can be classified into:
(i) Family packaging – The products of a particular manufacturer are packed in an identical manner, for example, Maggi’s package of four.
(ii) Re-use packaging – Packages that could be used for some other purpose after the product has been consumed is known as re-use packaging.
(iii) Multiple packaging – Placing several units in a container, for example, Haldiram’s gift items.
Functions of Product Packaging:
The major function of packaging is to protect the product in transit, in storage and in use, for example, from breakage and spoilage by moisture, fungus, insects and exposure to sunlight.
Other functions of packaging are:
i. To assemble and arrange contents in desired form;
ii. To identify the contents, the brand and the maker;
iii. To protect the contents from the time of production to the end use;
iv. To provide suitable product mix, including size, weight prices, grades and packages;
v. To facilitate retailer functions;
vi. To facilitate transporting, storing and warehousing;
vii. To enable the display of contents;
viii. To encourage recall, repurchase and facilitate product use;
ix. To help in complying with legal requirements;
x. To provide opportunity and space for advertising;
xi. To offer resale value to customers;
xii. To provide protection from various kinds of damages because of mechanical handling, pilferage, product loss, moisture gain, dust, insect attack, chemical changes etc.; and
xiii. Promotional advantages of packaging also form a major part of its functions.
Interview Question # Q.34. What are the objections against advertising?
Ans. Some advertisement misleads people about any products and services- it increases the consumerism customer make expenses in purchase of unnecessary products by motivation and stimulation by advertisements. Advertisement results in high prices of products, it increases the selling cost. Prospect may confuse by intense advertising.
Advertisement is regarded as waste when it encourages people to purchase unnecessary products. It is responsible for fast and premature change in fashion and style. Advertising exaggerates the real fact to the customers. It is a hurdle in the progress of small firms as they can’t invest more on advertising as compare to large firms.
Interview Question # Q.35. Explain the concept of product life cycle (PLC)!
Ans. The concept of product life cycle was popularised by Theodore Levitt in 1965. The product life cycle may be short for some products and long for others. Some products fail immediately while others live for a longer period. The product, thus, has a ‘life cycle’ just as human beings have. Its life begins with its market introduction, then goes through a period during which its market grows rapidly, eventually it reaches at maturity and then stands saturated.
Afterwards, its market declines and finally its life comes to an end. The stages through which a product passes are collectively known as product life cycle. The life cycle of a product commences with its birth and ends with its obsolescence. During the life of a product, profits rise and fall. It is therefore necessary for the firm to devise appropriate marketing, financial, production and purchasing strategies for each of the stage of the product life cycle.
Interview Question # Q.36. What is the role of an advertising agency?
Ans. Advertising agency is an important part of advertising. The firm may either have its own advertising department or may hire the services of professional known as Advertising Agency. Thus, advertising agency is one independent organisation specialised in advertising work.
These agencies take the work of planning and preparing advertising campaign for their clients. Advertising agency offers specialised knowledge, skills and experience which is required to produce an effective advertising campaign through a team of writers, artists, media experts, researchers, etc.
According to Cundiff and Still, “Advertising agency is an independent business organisation composed of creative and business people who develop, prepare and place advertising in an advertising media for sellers, seeking to find customers for goods and services.”
According to R. S. Davar, “An advertising agency is a service organisation which has come to be accepted as a professional body which undertakes the planning and preparation of advertising.”
Thus, an advertising agency is a distinct body of experts appointed by the clients to plan, produce and place advertising campaigns. On behalf of its clients, the advertising agency studies advertiser’s product, sales pattern, distribution system and consumer and against this background prepares advertising campaign.
Interview Question # Q.37. What are the different types of brand names?
Ans. There are three main types of brand name, these are:
1. Family Brand Names:
A family brand name is used for all products. By building customer trust and loyalty to the family brand name, all products that use the brand can benefit. Examples of brand name- TATA, Godrej, Jindal, Bajaj etc., Of course, the use of a family brand can also create problems if one of the products gets bad publicity or is a failure in a market. This can damage the reputation of a whole range of brands.
2. Individual Brand Names:
An individual brand name does not identify a brand with a particular company. The product may be competing in a new market segment where failure could harm the main family brand name.
3. Combination Brand Names:
A combination brand name brings together a family brand name and an individual brand name. The idea here is to provide some association for the product with a strong family brand name but maintaining some distinctiveness so that customers know what they are getting. Examples of combination brand names include Hero Honda, Bharti Airtel, Microsoft XP and Microsoft Office in personal computing software.
Interview Question # Q.38. Why packaging is an important tool of sales promotion?
Ans. Packaging and the resulting package are intended to serve several vital purposes:
(i) Protect the product on its way to the consumer – It protects a product during shipment. It can prevent tempering with products, especially in case of medicines and food products in the warehouse or the retail store.
(ii) Provide protection after the product is purchased – Compared with bulk items, packaged goods generally are convenient, cleaner and less susceptible to losses from evaporation, spilling and spoilage. ‘Child proof closures’ can be provided.
(iii) Be part of a company’s trade marketing programme – A product must be packaged to meet the needs of whole-selling and retailing middlemen.
(iv) Be part of a company’s consumer marketing programme – Packaging gives an identity to a product and thus may prevent substitution of competitive products. The promotional copy on the package will last as long as the product is used in its packaged form.
With its marketing significance fully recognised, packaging is a major factor in the competition for customers.
Interview Question # Q.39. What is the need and purpose of branding?
Ans. In this era of cut throat competition there is tremendous pressure on business firms for survival and growth. For this they have to win the confidence of the customers. Branding is an important activity through which they can attract the customers and win their confidence. A good brand name which is easy to pronounce and remember attracts everyone.
It creates an image about the product and seller in the minds of the customers. It provides individuality and prestige to the product. Therefore, branding in today’s marketing world is essential, as it not only attracts the customers but also helps in holding their attention for long period of time.
Purpose of Branding:
The main purposes of branding are:
1. It gives a name to the product and thus helps in product identification.
2. It helps in distinguishing the product from the competitor’s product.
3. It enables to get the immediate attention of the buyer.
4. It assures better quality of the product to the customers.
5. It helps in easy recognition of the product in the stores.
6. It helps in creating goodwill for the firm.
Interview Question # Q.40. What is market segmentation?
Ans. Market consists of consumers who are too large in numbers and are widely scattered across the length and breadth of the world. There is a high degree of homogeneity and heterogeneity among them. All the consumers have needs and wants, tastes and preferences, liking and disliking etc. this is because consumers vary tremendously in age, income, educational level, occupational structure, and mobility patterns etc.
They vary from region to region, culture to culture and from one place to another. Above all, there is a continuous and rapid change in consumers attitude, perceptions, thinking, decision making process, as they become more aware and knowledgeable day by day. All these make markets highly complex and unpredictable.
Under such complex conditions, any organisation will find that it cannot serve all the consumers in the market. Hence, there is need to segment the market. Marketers have to divide the entire market into various sub-groups in such a way that each sub-group has consumers with homogeneous characteristics. This is termed as market segmentation.
Markets are made up of segments and segments are made up of sub-segments. All of these segments may not be equally attractive to any one company. Some segments may be such that it can be effectively served by one firm, while other segments may be suitable for other firms. Hence specific market segments are selected which in the opinion of the firm it can serve more effectively and efficiently than its competitors.
Questions To Ask A Marketing Manager
Interview Question # Q.41. What do you mean by personal selling. What are its features?
Ans. Personal selling is the oldest, the most important and the most widely used and one of the most effective methods of creating and stimulating demand, finding buyers and making sales. Even the best of the advertising media remains ineffective unless a sale is made. The method of personal selling is effective in searching out buyers, in demonstrating or describing the goods to them, in giving necessary information and answering objections and in completing the sale.
Features of Personal Selling:
(a) It involves individual’s communication skills.
(b) It is related with passing on of oral messages.
(c) It has the drawback of bringing into contact low number of people.
(d) It is way flexible in nature as salesman can react to the expressions of the person and to convince him and make him a customer.
Interview Question # Q.42. What are the advantages of personal selling?
Ans. Following are the main advantages of personal selling:
1. Personal selling is flexible, it can be adapted to the specific needs of the prospective buyers. Many sales people regard themselves as diagnosticians of prospective buyers’ needs. Whereas advertising must be general enough to reach mass markets, personal selling can be tailored to the demands of specific buyers. In many cases a sales representative designs a specific selling strategy for each prospects.
2. In many cases personal selling is intended to obtain immediate orders. Although advertising and sales promotion may plant in consumers the need of a desire to purchase, personal selling is designed to precipitate a decision to buy, often on the spot.
3. The reason is that the companies can use sales people to collect information from customers and prospective customers about changing needs and styles; they operate as part of the marketing information system.
4. Sales people can often handle post-sale servicing and can follow up on other problems that may occur after sale is made. Companies use personal selling, to perform functions that advertising and sales promotion cannot.
Interview Question # Q.43. What is the importance of branding?
Ans. (i) Shopping behaviour – In most consumer goods categories, buyers must choose among a large number of products offering similar attributes and benefits, especially for low-involvement, low-price items like bread, toothpastes, snack foods, stationery etc.
(ii) Emotional connections – Branding creates brand personality and image to which customers feel an emotional connection.
(iii) Habitual buying – For a wide range of products like tea, coffee, newspaper etc. consumers make their purchase decisions based largely on habit.
(iv) Creates business credibility.
(v) Motivates the buyer – When the connection between the customer and the product is strong, the brand becomes a motivator for the consumer to continue buying products, even if they have never used that exact product before.
Interview Question # Q.44. What is meant by brand equity?
Ans. Brand equity refers to a brand’s power and name recognition that it earns over-time. It helps the firm in securing higher sales volumes and leads to higher profit margins as compared to the competing brands.
In simple words, it is a value premium that a company generates from a product with recognisable name when compared to its competitors. Companies create brand equity for their products by making them memorable, easily recognisable and superior in quality and reliability. For this purpose companies use mass marketing campaigns. Brand equity is the value of a particular brand in the market.
A strong brand has high brand equity. Brand equity is nothing but the worth of a brand. It is very important for companies to have high brand equity as it gives the firms a competitive edge.
Firms having high brand equity find it easy to extend their product line. Moreover, they enjoy high level of consumer loyalty which leads to higher sales volumes and eventually higher profit margins.
Maruti, Tata and Bata are some examples of companies that have created brand equity.
Interview Question # Q.45. What is the role of marketing research?
Ans. i. The role of marketing research is highly significant in the present day market conditions. Markets today are highly complex and unpredictable. There is a continuous change in the consumers taste and fashion. Producers are thus required to keep themselves abreast with the changes and accordingly modify their product mix. Marketing research helps in providing required information to marketing manager.
ii. Marketing research is a scientific process and it replaces guess work, stipulation and other traditional methods of decision making. Now, marketing research is an indispensable tool in the hands of marketing manager to solve various problems.
iii. The increasing globalisation of the business has brought greater distance between the producer and consumer. The international markets are more complex in nature and it is difficult for the manufacturer to establish a close contact with all the consumers directly. Marketing research helps in getting reliable information about the market.
iv. The changing conditions of the market in terms of changes in buyer behaviour, their purchasing capacity, expenditure level, etc. have to be studied by the manufacturer. Marketing research helps in collecting information about these changes.
v. Consumer is the centre point of all marketing activities. Their need and expectations and satisfaction require special consideration in all marketing activities. Marketing research includes consumer research and provides valuable information relating to the consumer.
Interview Question # Q.46. What are the principles and precepts of marketing management?
Ans. The principles of marketing management refer to a framework that provides guidelines to formulate and implement the marketing policies and procedures in an organization. These principles deal with the basic aspects of segmenting, positioning, and targeting a market. These aspects require effective marketing research programs that involve finding the solution of a marketing problem.
Market segmentation is a process that classifies the market into different segments on the basis of age, gender, and income of customers. Market positioning involves creating an image of the product in the mind of customers by adopting a product differentiation strategy. As a manager, you should be well informed about the principles of marketing management to gain a better understanding of marketing mechanism.
The article explains the definition and process of market research. It further deals with the functions of Marketing Information System (MIS). This article also describes the concept of market segmentation and its different levels. It discusses the basis and patterns of market segmentation at length.
The article also elaborates on the process of market segmentation and various requirements, such as substantiality, measurability, accessibility, and differentiability for effective market segmentation. In addition, it explains the target market selection process at length. Towards the end, it describes various tools for competitive differentiation and the development of a positioning strategy.
Interview Question # Q.47. Is advertising a waste?
Ans. The amount and resources spent on advertising can be utilized for improvement of quality and reduction of total cost of a product or services. The cost of advertising is included in the price of a product. Advertising cost is a major part of marketing cost in products like cold drinks, Auto mobile, insurance etc. It means with limiting expenditure on advertisements a company can reduce the final price of a product, which is unnecessary bear by customers.
The aim of advertisement is to promote sale of a product by creating demand of products and services it means advertisements are productive in nature. Advertising contributes a lot in economic development of a country. It generates employment opportunities directly and indirectly like media agents, media agencies, actors, musician, artist, painters, newspapers, media people etc.
Advertisements are the main source of income of mass media like television and newspaper. Now companies are adopting social advertising to educate people about protection of environment. It is not a waste. It act as a catalyst in the process of marketing.
Interview Question # Q.48. What is meant by sales promotion?
Ans. Sales promotion refers to the activities which supplement and co-ordinate personal selling and advertising to attract customers to buy a product. Sales promotion methods include displays, demonstrations, expositions, exhibitions and other non-recurrent selling efforts which aim at impelling spot buying action by prospective customers.
Sale promotion techniques are indirect and non-personal. Sales promotion activities are more common for consumer’s goods marketing than for industrial goods. Consumers are attracted by displays, packaging and publicity. Sales promotion devices are also a source of information to the customers.
Definitions of Sales Promotion:
According to Masson & Ruth, “Sales promotion consist of those cultivates that are designed to bring a company’s goals or services to the favorable attention of customers”.
According to William. J. Stanton, “Sales promotion is an exercise in information persuasion and influence”.
Characteristics of Sales Promotion:
(i) Sales promotion does not include advertisement, personal selling and publicity.
(ii) Sales Promotion activities are not regular activities. These are purely temporary and are performed at certain times such as display, free samples, exhibitions, demonstration etc.
(iii) It makes advertisement and personal selling more effective.
(iv) Sales promotion encourages dealers, distributors and consumers.
Interview Question # Q.49. What are the objectives of sales promotion?
Ans. The ultimate objectives of sales promotion are the same as those of advertisement and personal selling.
Sales promotion techniques are used to achieve the following objectives:
(i) To increase sales volume by inducing the customers to buy more.
(ii) To attract new customers to try the products.
(iii) To introduce new products in the market by creating awareness through sale promotion activities.
(iv) To create goodwill among the present as well as prospective customers.
(v) To create good public image of the product and the firm.
Toughest Marketing Interview Questions
Interview Question # Q.50. What is the importance of sales promotion?
Ans. In current marketing environment, companies spent a lot on sales promotion activities. Even established brands like Pepsi, Coca Cola, Maruti etc. are having regular sales promotion plans. Now it is a part of marketing strategy. Sales promotion stimulate customer and encourage them for trial purchase. It removes the dissatisfaction of customer with respect to retailing.
(i) It generates consumer interest, which lead to trial therefore it is helpful for seller when they introduce new products or new brands in the market.
(ii) During recessionary phase of business cycle, customers become more price sensitive. Promotional schemes like price off and discounts bring customer to retail shops.
(iii) It is helpful in retrieving lost customers and retaining existing customers.
(iv) Sales promotion motivates dealers and retailers to provide extra shelf space and merchandising. Companies offer to train the staff of its dealers/distributors with regard to their products to get a better shelf positioning and extra shelf space. It helps in earning the goodwill of dealers and distributors.
(v) It is useful in unloading the accumulated inventor in company’s stock.
Interview Question # Q.51. What do you mean by marketing collaterals?
Ans. Marketing collaterals are the collection of various communication items used to assist in sales and promotion activities. The purpose of this communication material should be to provide right information about the company and its products or services.
This material can be in the form of – Brochure and other printed product information, Visual aids used in sales presentations, Catalogs, Leaflets, Danglers, Presentations, Films and video clips, Web sites, Production data sheets and comparison charts, Sales scripts, Demonstration scripts, Elevator pitch scripts, Telemarketing scripts, Price lists, Business cards, Letterheads, Customer Testimonials, Sales email drafts etc. etc.
Interview Question # Q.52. What is meant by advertising budget?
Ans. Advertising budget is the planned expenditure on advertising by an organisation during a particular period of time. It includes item of expenditure relating to advertising programme, cost of space, advertising material, media expense, agency commission, advertising research, etc. In simple words, advertising shows the proposed advertising expenditure of a company for period of time.
The advertising budget should be realistic, flexible and adequate for advertising programme. It should be tailored to suit the needs of the business organisation. The amount provided in the advertising budget is not fixed arbitrarily but is determined scientifically keeping in view the nature of the product, size of the market to be covered by the enterprise, types of customers and the strategies of the competitors.
Interview Question # Q.53. What is the process of marketing?
Ans. Nature of marketing evolves from its multidisciplinary coverage of activities which is as follow:
i. Dynamic Process – Marketing is an ongoing activity which does not stop at any step. After finding customer’s needs and wants it needs to develop such products or services which can satisfy these needs and after this there is need to advertising, promotion, distribution, etc. the process goes on.
ii. Marketing is an Economic Function – Marketing embraces all the business activities involved in getting goods and services, from the hands of producers into the hands of final consumers. The business steps through which goods progress on their way to final consumers is the concern of marketing.
iii. Marketing is a Legal Process – In the process of marketing the ownership of goods transfers from seller to the purchaser or from producer to the end user.
iv. Customer Oriented – Marketing is customer oriented. Marketing is the process of finding needs and wants of customers and satisfying those needs profitably.
v. Marketing is a System of Interacting Business Activities – Marketing is that process through which a business enterprise, institution, or organisation interacts with the customers and stakeholders with the objective to earn profit, satisfy customers, and manage relationship. It is the performance of business activities that direct the flow of goods and services from producer to consumer or user.
vi. All Encompassing – Marketing is all encompassing, it is not a single process it includes production planning, research, advertising, financial management, budgeting, selling, etc.
vii. Integrating – It integrates all the departments of an enterprise be it production, finance, IT, HR, etc.
viii. Marketing is a social process – Marketing is the delivery of a standard of living to society. According to Cunningham and Cunningham (1981) societal marketing performs three essential functions –
a. Knowing and understanding the consumer’s changing needs and wants;
b. Efficiently and effectively managing the supply and demand of products and services; and
c. Efficient provision of distribution and payment processing systems.
ix. Creative – Marketing is creative in nature, it looks out for new ideas, views and activities and solves problems or avail opportunities in a creative way.
Interview Question # Q.54. What are the commonly used tools for sales promotion?
Ans. Different sales promotion tools are adopted by the companies to boost their sales.
Some of the commonly used sales promotion tools are:
i. Discount – It refers to offering product at less than list price. For example, a shoe company’s offer of “Discount up to 50%” or a shirt maker’s offer of “50% + 40% Discount”.
ii. Refunds – Refunding of a part of price paid by the customer on some proof of purchase, say on return of empty foils. This technique is commonly used by the food product companies, to boost their sales.
iii. Product Combination – Offering another product as a gift along with the purchase of a product, say offer like buy a TV of 25+ and get DVD player free.
iv. Quantity Gift – Offering extra quantity of the product purchased by the consumer. For example – “10% extra or buy 2 get 1 free”. This type of technique is commonly used in case of convenience goods like – tea; toiletry products etc.
v. Lucky Draw – For example lucky show coupon on purchase of cloths and win a car offer.
vi. Free Samples – Offer of free sample of product, say detergent or tooth paste to potential customers at the time of launch of a new brand.
Interview Question # Q.55. What are business markets?
Ans. In Business market, the buying and selling takes place among businesses. It includes profit as well as not for profit businesses, government agencies (Local, State and National) and institutions (Schools, Hospitals). The business buying is quite different from consumer buying, as the buyers are well informed and a professional approach is taken up, while taking purchase decisions.
Business markets include the finished goods like PCs, office furniture, raw materials and components like steel, paint, timber, plastics, steering and services like security, courier, accounting and legal services. With respect to the consumer market, the buyers and sellers in the business market are relatively small in number.
Most of the times, the products and services are similar in the consumer markets and business markets like a fan or a TV or a courier service. The classification of the market depends upon the usage by the consumer or the business entity. A fan or a TV bought by a customer for his home use is a part of the consumer market, while the same brand of Fan or TV becomes a part of the business market, if it is bought by a hotel or by an educational institution.
Interview Question # Q.56. What is direct marketing?
Ans. Direct marketing is just what it sounds like – directly reaching a market (customers and potential customers) on a personal (phone calls, private mailings) basis, or mass-media basis (infomercials (A television program that promotes a product in an informative and supposedly objective way), magazine ads, etc.).
Direct marketing is often distinguished by aggressive tactics that attempt to reach new customers usually by means of unsolicited direct communications. But it can also reach out to existing or past customers. A key factor in direct marketing is a “call to action.” That is, direct marketing campaigns should offer an incentive or enticing message to get consumers to respond (act).
Direct marketing is current practice in industrial markets when potential buyers are few and products are sophisticated or custom-made and of high unit value.
Interview Question # Q.57. What is personal selling?
Ans. a. Personal selling is selling technique involved between person to person and between the prospective buyer and seller.
b. Personal selling consists of human contact and direct communication rather than impersonal mass communication.
c. Personal selling involves developing customer’s relationship, discovering and communicating customer needs, matching the appropriate products with these needs.
d. Personal selling is the most significant promotional tool in terms of number of people employed.
Interview Question # Q.58. What are the methods of personal selling?
Ans. a. Retail selling – Selling to ultimate customer.
b. Field Selling – Business to business selling that take place in the prospective customer’s place of business.
c. Telemarketing – Using the Telephone as the primary means of communicating with prospective customers and Telemarketers often used computers for order taking.
d. Inside Selling – Business to business selling in the Sales person’s place of business.
Interview Question # Q.59. What are the functions of packaging?
Ans. a. To protect a product from damage or contamination by micro-organisms and air, moisture and toxins
b. To keep the product together, to contain it
c. To identify the product
d. Protection during Transport and Ease of Transport
e. Stacking and Storage
f. Printed Information
Interview Question # Q.60. What are the characteristics of sales promotion?
Ans. 1. Sales promotion does not include advertisement, personal selling and publicity.
2. Sales promotion activities are not regular activities. These are purely temporary and are performed at certain times such as display, free samples, exhibitions, demonstration etc.
3. It makes advertisement and personal selling more effective.
4. Sales promotion encourages dealers, distributors and consumers.
Entry Level Marketing Interview Questions
Interview Question # Q.61. What is meant by bar code?
Ans. A barcode is an optical machine-readable representation of data relating to the object to which it is attached. Originally barcodes systematically represented data by varying the widths and spacing of parallel lines, and may be referred to as linear or one-dimensional (ID). Later they evolved into rectangles, dots, hexagons and other geometric patterns in two dimensions (2D).
Although 2D systems use a variety of symbols, they are generally referred to as barcodes as well. Barcodes originally were scanned by special optical scanners called barcode readers. Later, scanners and interpretive software became available on devices including desktop printers and smartphones.
Interview Question # Q.62. What is meant by pricing discounts?
Ans. a. Quantity Discounts – Offer to customers who purchase large quantities.
b. Cumulative Quantity Discount – A discount that increase as the cumulative quantity increases.
c. Seasonal Discount – Based on the time when the purchase is made.
d. Cash Discount – Extended to customers who pay their bill before a specified date.
e. Trade Discount – A functional discount offered to channel members for performing their roles.
f. Promotional Discount – A short term discounted price, offered to stimulate sales.
Interview Question # Q.63. What is the importance of pricing decisions?
Ans. The following points highlight the importance of pricing decision in the current marketing environment:
i. The chosen price directly influences demand level and determines the level of activity. A price set too high or too low can endanger the product’s development.
ii. The selling price directly determines the profitability of the product or service.
iii. The price set by the firm influences the product or the brand’s general perception and helps in shaping brand’s image.
iv. The price is an easy means of comparison between competing products or brands especially when there is hardly any brand differentiation.
v. Increased prices of some raw materials, inflationary pressures, wage rigidities and price controls call for more rigorous economic management.
vi. Legal constraints, as well as regulatory and social constraints, such as price controls, setting maximum margins, authorization for increases etc., limit the firm’s autonomy in determining prices.
vii. Reduced purchasing power in most economies makes buyers’ more aware of price differences, and this increased price sensitivity reinforces the role of price as an instrument for stimulating sales and market share.
Interview Question # Q.64. What are the features of personal selling?
Ans. (i) Personal Confrontation – Two or more persons come into active relation and each party is able to observe at close quarters the characteristics and needs of the other and make immediate adjustments and thereby make the encounter successful.
(ii) Cultivation – personal selling may lead to all kinds of relationship to a deep personal friendship.
(iii) Response – Personal selling usually makes the prospects feel a sort of peculiar obligation for having listened to sales talk.
Interview Question # Q.65. Define sales promotion!
Ans. Sales promotions are the set of marketing activities undertaken to boost sales of the product or service. According to William J. Stanton, “Sales promotion is an exercise in information, persuasion and influence. Philip Kotler defines it, “Promotion encompasses all the tools in the marketing mix whose major role is persuasive communication.”
American Marketing Association has defined it as “These marketing activities, other than personal selling, advertising and publicity that stimulate consumer purchasing and dealer effectiveness such as display shows and exhibitions, demonstrations and various non-recurrent selling efforts not in the ordinary routine'”
The above definitions conclude that sales promotion activities encompass all activities (except advertising, personal selling and publicity) which aim at increasing the sales volume.
Interview Question # Q.66. What is the meaning of advertising?
Ans. Advertising simply means the business of drawing public attention to goods, services and ideas or concepts. Advertising is any paid form of non-personal communication of messages through the mass media about a product, service or idea by an identified sponsor. It is a powerful promotional tool which individuals, businesses and non-business organisations use for informing, persuading and reminding their target audiences.
Advertising is a much more effective, widespread and less costly way of establishing contact than other means of promotional communication i.e., personal selling, sales promotion and public relations. Thus, advertising is a tool of marketing to influence the customers to buy the product, service and concept.
Advertising consists of all activities involved in presenting to a group, a non-personal, oral or visual, openly sponsored messages regarding a product, service or idea. This message, called an advertisement, is disseminated through one or more media and is paid for by the identified sponsor.
Interview Question # Q.67. What are benefits of marketing research?
Ans. P. White has pointed out the following benefits of marketing research:
i. Marketing conditions and their potential may be known through marketing research.
ii. Information about customers is obtained.
iii. Test and improvement of present selling activities is possible through data collection.
iv. Sales territories can be distributed more efficiently after conducting marketing research which gives the potential of each territory.
v. Determination of sales quota is possible.
vi. Study of old commercial policies and test of new policies may be conducted easily.
vii. Efficiency of promotion can be determined by the promotional analysis.
viii. Power and weaknesses of competitors may be studied and fair policies may be determined.
ix. Knowledge of this fact may be obtained by customers like one product in comparison to others.
x. Knowledge about habits of customers and retailers may be obtained.
Interview Question # Q.68. What are the difficulties in determining buying motives?
Ans. To understand the consumer behaviour is of great importance to the marketing manager. Motives are the guiding force of a consumer for making the purchase decision. A marketing man is continuously involved in researching about the buying motives of the consumer but on the other side it is very difficult to know the inner state of a person.
A marketing person has to face the following difficulties in determining the buying motives:
a. Unawareness of purchasers
b. Non-disclosure by purchaser
c. Difficulty in separation
d. Ever changing pattern of motives
e. Personality of the purchaser
Interview Question # Q.69. What are the limitations of market segmentation?
Ans. While market segmentation can provide a lot of benefits, this strategy has some drawbacks with respect to cost and market coverage. Market segmentation can be an expensive proposition in both production and marketing of products.
From marketing point of view, the marketer has to develop different marketing mixes for different segments. In production, producing in mass quantities is much cheaper than making variety of products.
Other expenses like keeping adequate inventories of each style, colour, promotional expenses also go up because different promotional mixes have to the formulated for different segments.
Administrative expenses also go up because marketer must plan and implement several different marketing programmes.
Interview Question # Q.70. What is meant by sales forecasting?
Ans. Sales forecasting is estimating what a company’s future sales are likely to be basing on sales records as well as market research. The information used in them must be well organized and may include information on the competition and statistics that affect the businesses’ customer base. Companies try to forecast sales in hopes of identifying patterns so that revenue and cash flow can be maximized.
Sales forecasting is also termed as forecasting market demand in the span area of sales management. It is the process of organizing and analyzing information in a way that makes it possible to estimate what will be the sales of the business.
A sales forecast is a prediction based on past sales performance and an analysis of expected market conditions. The true value in making a forecast is that it forces us to look at the future objectively. The company that takes note of the past stays aware of the present and precisely analyzes that information to see into the future.
Important Marketing Interview Questions
Interview Question # Q.71. What are the factors affecting product life cycle (PLC)?
Ans. 1. The intrinsic nature of the product itself
2. Development of substitute products
3. Rate of change and market acceptance
4. Changes in the macro-environment (Patent, copyright and trademark)
5. Changes in consumer preferences, which are affected by the macro and micro environment
6. Competitive action
7. Goodwill of the organisation
Interview Question # Q.72. What is the use of marketing information system?
Ans. How do you identify a market opportunity? How best can you serve your target markets? Should you opt for intensive or integrative growth opportunity or should you go for diversification? All these questions can only be answered, if you have the information. As you know, Information is power.
Today’s business is driven by the information. The same applies to marketing also. The company needs to be informed about its customers, competitors and its context. The company needs to be aware about the changing business scenario and changing customer needs. That’s why a marketing information system (MIS) should be in place to become effective and efficient in the market.
Marketing information system consists of people, procedures and systems to collect, analyse and distribute the information needed to marketing decision makers.
Marketing information system is based on internal company records like Sales information system, order to payment cycle, databases, marketing intelligence activities, marketing research and marketing decision support system. In the case of internal company records, order to payment cycle is very important.
Big Bazaar has got more than 160,000 products on their shelf. With the usages of internet, intranet and extranet, companies like Big Bazaar and others are managing their sales cycles, their suppliers and their customers efficiently.
Interview Question # Q.73. What are the areas of marketing research?
Ans. Marketing research can be successfully applied to do the research under the following areas:
i. Analysis of the market size according to age, sex, income, and standard of living of the customers.
ii. To know about prospective customers.
iii. To get a knowledge of competitors’ share in the market.
iv. Estimating the territorial demand of different markets.
v. Studying the market changes and market conditions affecting the market changes.
vi. Knowing about the profitability of different markets and the market segments.
vii. Analyzing the working of various channels of distribution.
viii. To know all about competitors and their products.
Interview Question # Q.74. What are the different types of buying situations?
Ans. Patrick Robinson, Charles Faris and Yoram Wind are of the view that there are three types of buying situation in the business market: straight rebuy, modified rebuy and new task.
1. Straight Rebuy:
When an order is placed on a routine basis, then it’s a case of straight rebuy. The product or services required are already known with the approved list of suppliers.
2. Modified Rebuy:
If there is a modification in the regular order with respect to product specification, delivery requirement, pricing, service requirement, then it becomes a case of modified rebuy.
3. New Task:
When there is a new requirement in the business like software, office space, security system, waste disposal system, water purification system etc., then it becomes a case of new task. Depending upon the complexity, the decision process can take days to months together.
For a marketer in the business buying process, the new task is very crucial; as it entails a great marketing opportunity for the marketer as well as a challenge for the buying organisation.
Interview Question # Q.75. What is marketing research? What are the types of marketing research?
Ans. Marketing research is a systematic and objective study of problems pertaining to the marketing of goods and services. It may be emphasized that it is not restricted to any particular area of marketing, but is applicable to all its phases and aspects.
As marketing research tackles problems which seem to have immediate commercial potential, it should be regarded as applied research. We may also say that marketing research is of both types- problem-solving and problem-oriented.
In other words, marketing research is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions to enhance an organization’s marketing activities. It is the function that links the consumer (customer) and public to the marketer through information.
Interview Question # Q.76. What are the elements of a market?
Ans. On the basis of the definitions of a market, a market has following elements and characteristics:
i. Marketing can be described as an organisation by which the exchange of goods is affected.
ii. Marketing is an integrated process.
iii. It refers to the total population of a geographical region (may be a city, a state, a country, the world) and its purchasing power in the aggregate.
iv. Marketing is customer oriented.
v. Marketing is a system.
vi. Marketing is a part of total environment
vii. A place as an open space (in the village) or a large building (public or private) where actual buying and selling takes place.
viii. The phase of commercial commodity by which the exchange of commodity is affected.
ix. An area of operation or the geographical or economic extent of the commercial demand for commodities. The market may extend to a locality, village, town or a country according to the demand of a commodity.
x. Marketing is creative.
xi. Marketing is goal-oriented.
xii. Marketing is pervasive.
Interview Question # Q.77. What are components of consumer psychology?
Ans. For making a successful marketing program it is necessary for a marketer to study the consumer behaviour so that he would know the attitudes, intentions and desires of the customers.
Customer psychology has the following components:
a. Knowledge – Knowledge is one type of information and on the basis of knowledge, the psychology of customer develops. For giving knowledge of the product to the customers, promotion plays an important role.
b. Attitude – Attitude is a state of mind or feeling. It induces a predisposition to behave in some way. Attitudes are very important in explaining buyer behaviour.
c. Intention – Intention means desire to do something. After knowing the intention of customers, the marketing programme can be formulated and can be co-ordinated with the production.
d. Motive – It is the integral state which directs the behaviour of a person. Some people call it urge. Because of this urge, the person’s behaviour is directed towards a particular cause.
Interview Question # Q.78. What is the procedure adopted for market segmentation?
Ans. Marketing segmentation process involves following distinct steps:
Step-I:
Survey stage – The researcher conducts interviews with the consumers to take the responses from them relating to their motivation, attitudes and behaviour.
For conducting the survey, the researcher prepares a questionnaire and applies it to some of the potential customers.
Step-II:
Analysis stage – After collecting the responses from the respondents, the next stage is to turn them into meaningful form through analysis, using factor analysis. After that, the researcher applies cluster analysis to make strata of homogeneous responses.
Step-III:
Profiling stage – Each homogeneous cluster is now profiled in terms of its distinguishing attitudes, psychographic, geographic, demographic and consumption habits. Each segment can be given a differentiating name.
Interview Question # Q.79. What are the characteristics of advertising?
Ans. The important characteristics of advertising are as follows:
i. Persuasion of Buyers:
Advertising compliments or may substitute for personal selling. To persuade the buyers the advertiser makes his products buyer satisfying. It is an art of influencing the human action to possess one’s product.
ii. Matter of Record:
It is a matter of record furnishing information for the benefit of buyers. It guides or helps buyers to make satisfactory purchases. The contents of an advertisement are what the advertiser wants to communicate.
iii. Paid form of Publicity:
Advertising is a paid form and hence commercial in nature. Thus, any sponsored communication designed to influence buyer’s behaviour is advertising because advertiser pays for it.
iv. Non-Personal Communication:
It is a mass non-personal communication, reaching large groups of buyers. It is not delivered by actual person. It is not addressed to a person. Whatever be the form of advertisement-spoken, written or visual, it is directed at a mass audience and not at the individual as in personal selling.
Identifiable with the Sponsor:
Advertising is identifiable with its sponsoring authority or advertiser. It discloses or identifies the source of opinions and ideas, it presents.
Interview Question # Q.80. What are the stages involved in product life cycle?
Ans. 1. Introductory Stage:
The chief characteristics at this stage are:
i. A high product failure rate
ii. Relatively few competitors
iii. Limited distribution (often exclusive or selective distribution)
iv. Frequent product modifications
v. The prime goal at this stage is to create awareness.
vi. The introductory pricing strategy will depend on the type of product in terms of its degree of distinctiveness.
2. Growth Stage:
The chief characteristics at this stage are:
i. The product is still vulnerable to failure
ii. More competitors and less product distinctiveness
iii. More profitable returns
iv. Rising sales
v. Company or product acquisition by larger competitors
vi. Distribution retains its importance during growth
3. Maturity Stage:
The chief characteristics at this stage are:
i. Much marketing activity is devoted to this stage.
ii. Sales continuing to grow, but at a very much decreased rate
iii. Attempts to differentiate and re-differentiate the product
iv. Prices beginning to fall in battles to retain market share. Profits begin to fall correspondingly
v. Increasing brand and inventory rationalization amongst retailers and distributors
vi. Marginal manufacturers retiring from the market when faced with severe competition and reduced margins
4. Decline Stage:
This is the stage in which sales of a product begin to fall. Many companies decide to withdraw their products from the market due to the downturn. The only way to increase sales during this period is to cut costs & reduce spending.
The chief characteristics at this stage are:
i. Sales falling continually for the total period
ii. Intensification of price cutting
iii. Producers deciding to abandon the market
Interview Questions To Ask Every Marketing Job Candidate
Interview Question # Q.81. What are the limitations of direct-order marketing?
Ans. 1. Acquisition of data of individual customers may be difficult – Direct marketing is effective only when all information about the individual customer is available. It may be difficult to acquire this data, as people would be reluctant to part with personal information.
2. The customers could be exposed to information overload – In today’s rich business and personal environment everyone is bombarded with all types of data. Daily people receive letters, voice mails, catalogues etc. Welcome and unwelcome information accosts the senses through the radio, television, telephone, books etc. Direct marketers are perceived to be contributing to this overload.
3. Requires highly skilled staff to analyze each customer profile – In Direct marketing communications, individual customers should be addressed by name & title. Also information from database is used to produce specific appeal based on consumers’ personal characters or past purchase behavior.
It is therefore important that the profile of each individual customer is accurately maintained. This would be possible only if the staff employed is highly competent to carry out this accurately. Customer Service rather than customer loyalty is more important in direct marketing.
Interview Question # Q.82. What are the functions of branding?
Ans. Branding is a powerful instrument of promotion which performs the following functions:
a. It helps in identification of products
b. It helps in ensuring quality
c. It helps in product differentiation
d. It helps in building image (goodwill) in the market
e. It helps in advertising of firm’s products
f. It helps in introducing new product
g. It helps a firm to charge different prices for its products
h. Leads to consumer protection
i. It serves as a bridge between seller and buyer
j. It eliminates imitation of products
Interview Question # Q.83. What are the modes of after-sales service?
Ans. Generally, the manufacturers try to improve the product design thereby rule out the possibility of product failures or frequent need for after-sales service.
But if after sale service is required, the following methods may be used:
1. Send Special Staff to the Customer:
For example, Symphony sends service engineers for any problem in their water-purifiers.
2. Arrange Service with Dealers:
For example, Maruti provides after- sales service for cars through its dealer network known as MASS- Maruti Authorised Service Stations.
3. Independent Service Specialists:
When manufacturer is unable to provide service through special staff or dealers, it can entrust rendering of after sale services to independent service specialists.
Interview Question # Q.84. What are the advantages of network marketing?
Ans. The network marketing provides the following benefits:
(i) The distribution network of the multi-level or marketing company grows continuously.
(ii) The network marketing companies can maintain higher margins on their products.
(iii) Entering new markets through network is both quicker and easier.
(iv) Overheads are low since no infrastructure is required under network marketing.
(v) Innovative products can be demonstrated and introduced through network marketing.
Interview Question # Q.85. Differentiate between customers and consumers!
Ans. Market segmentation is one of the key determinants of successful marketing and is fundamental to the matching process. In order to understand market segmentation, it is necessary to be clear about- the difference between customers and consumers; the meaning of ‘market’ and market share; and the sequential relationship between the various steps of the market segmentation process and its ultimate contribution to securing competitive advantage.
Let us start with the difference between customers and consumers. The term ‘consumer’ is generally interpreted to mean the final consumer, who is not necessarily the customer. For example, a parent who is buying breakfast cereals is probably the intermediate customer, acting as an agent on behalf of the eventual consumers (the family). In order to market cereals effectively, it is imperative that the marketer understands what the final consumers want as well as what the parent wants.
Given that we can appreciate the distinction between customers and consumers, and the need to be alert to any changes in the consumption patterns and requirements of final consumers, the next question becomes- ‘Who are our customers?’
Direct customers are those individuals or organizations that actually buy direct from us, such as distributors, wholesalers, retailers, and so on. However there is a tendency for organizations to confine their interests, and hence their marketing, to those who actually place the orders.
There are countless other examples of companies which have ceased trading because they did not pay sufficient attention to the needs of customers further down the supply chain and thus failed to provide any real value to their direct customers.
Interview Question # Q.86. Can an Individual Customer be a market segment?
Ans. Firms that address B2B markets, or sell consumer goods through large retail chains, often focus efforts on individual customers — segments-of-one. The firm treats each strategic/key account as an individual market segment.
Historically, in B2C markets, individual artisans — custom tailors — provided high-priced, personally designed bespoke products to individuals. Today, technological advances allow firms in many industries to serve segments-of-one.
Examples- Optical retailers like Lenskart deliver individually fashioned spectacles within a few days. At Callaway and Golfsmith performance centers, golfers receive computer analyses of golf swings; they purchase precise-length clubs, bent to a specific angle. Many firms personalize products using choice board models- Dell — PCs, Mattel — Barbie dolls.
Q.87. What are the factors influencing proper selection of advertising media?
Ans. It is a means through which the advertising message is conveyed to the consumers.
Proper selection of media depends on following factors:
1. Nature and type of customers (nature of segments)
2. The objectives of communication
3. Fund available for advertising
4. Characteristics of the product and its demand
5. The nature and extent of competition prevailing etc.
Interview Question # Q.88. What is the use of market segmentation?
Ans. A market consists of heterogeneous customers who differ in terms of their needs, preferences and buying capacity. A different marketing approach is necessary for every customer group. Therefore it becomes necessary to divide the total market into different segments or homogenous customer groups. Such division is called market segmentation.
Market segmentation is the sub-dividing of a market into homogenous subsets of customers where any subset may be selected as a target market to be reached with a distinct marketing mix.
Market segmentation enables the entrepreneur to fine tune his marketing efforts so as to match the requirements of the target market as well as possible. Instead of wasting his efforts in trying to sell to all types of customers, a unit can focus its efforts on the segment most appropriate to its marketing programme.
Interview Question # Q.89. What is the role and importance of MIS?
Ans. Role, characteristics, and goals of an efficient MIS in an organisation can be summarised in the following statements-
1. Information primarily geared to assist marketing decision-making process and control.
2. Marketing communication based on relevance with respect to diverse needs of management at different levels.
3. Flexibility in information system to incorporate future requirements of marketing managers on need basis.
4. Marketing information helps an organisation update itself with the current and future competition, diversification and/or expansion of strategic plans because marketing managers are engrossed in finding solutions to ever-increasing operational problems.
Interview Question # Q.90. What are the limitations of sales forecasts?
Ans. 1. Sales forecasts are only estimates of future sales and they cannot be completely accurate and reliable.
2. Forecasts are based on certain assumptions and business environment is dynamic and constantly changing. Accurate sales forecasting is a challenge to the sales professionals.
3. Changing fashion and style affect the sales,
4. Psychological behavior of consumer is difficult to assess,
5. Absence of sales history affects the sales forecast especially for new products,
6. Sales forecasting is time consuming and requires services of skilled persons.
Top Marketing Interview Questions And Answers
Interview Question # Q.91. How is product positioning done?
Ans. Important steps in product positioning are given below:
(1) Find out competitive differences.
(a) Product differences,
(b) Service differences,
(c) Differences such as image of the producer and Brand equity.
(2) Select major differences.
(a) Product benefits,
(b) Warranty,
(c) Prices,
(d) Packing’s.
(3) Develop positioning strategy.
Positioning by price, benefits, competition, etc.
(4) Communicate the product positioning through appropriate media and methods. Example- Pepsi sponsoring cricket matches.
(5) Follow up.
Assess the impact of the positioning through brand awareness, sales, etc.
Interview Question # Q.92. What is integrated marketing?
Ans. When all the departments i.e., Manufacturing, Finance, HR, Supply Chain work together to satisfy the needs and wants of the customers, the result is integrated marketing. Integrated marketing involves working together of all the managerial functions of an enterprise and co-ordination between marketing and other departments in the organization.
This involves both internal and external marketing. Internal marketing is concerned with training and motivating of all the employees to serve the customers. External marketing is directed at people outside the companies i.e., various categories of customers. In a highly competitive marketing environment, customer orientation is the key to profitability of the organisation. However, in the organisational structure, customers are at the bottom of the pyramid, indicating low priority for customers.
Under integrated marketing concept, the customers are given greater importance and are on the top of the organisation and at the base is the top management. All executives and managers are involved in servicing the customers.
Interview Question # Q.93. What is the difference between sales & marketing executives?
Ans. The job of a Sales Executive is different from the job of a Marketing Executive as shown below:
Sales Executives (Expert in Sales Management):
1. Sales volume (rather than profits) is given top priority as increasing current sales would result in rising commission or bonuses.
2. They are oriented towards current products, markets, customers and strategies. Short-run (rather than long- run) views are preferred.
3. Individual customers (rather than market segment classes) are given primary attention. Minimum interests in developing strategies for market segments.
4. Fieldwork (rather than deskwork) is always favoured. No interest in developing plans and strategies and working out methods for implementation of plans.
Marketing Executives (Expert in Demand Management):
1. Focus on sales volume around profits. They aim at integrated marketing mixes to achieve profitable volume and market share at reasonable risks.
2. They study how the company can translate long-run trends, opportunities, and threats into new products, markets and strategies that yield long-term growth.
3. Find out ways and means for offering best value to most profitable segments. Market segmentation is given special emphasis.
4. They adopt good system for market analysis, planning and control and they are interested in finding out financial implications of marketing plans.
Interview Question # Q.94. What is the relationship that sales organizations have with final buyers?
Ans. Final buyers can be of two types viz. ultimate consumers and industrial users. The competitive free enterprise system is based on the tenet that customer needs and wants must be satisfied and the individual companies thrive only when their products are able to meet this requirement.
The attitudes of the buyers and their behavior patterns that are formed over a period of time are not easily changed and it is found that manufacturers have a competitive edge when they are aware of attitudes and prejudices that are attached with their products and organizations.
Surveys among final buyer group collects the information required for planning ways to alter the attitudes and behaviors of the final buyers. Surveys have also been found to analyze the progress towards overcoming prejudices and detect the needs for product improvement and the prestige associated with middlemen in the distribution chain.
Responsibility of satisfying final buyer is not just restricted to the sales department alone but also the production department and many other departments that are directly or indirectly associated with the marketing of products. It is also the responsibility of the HR department to manage final buyer relations by motivating the employees of the organization.
The employees are but the internal customers and it is they who are directly in touch with the final buyers. If they are happy and motivated in selling the products they are dealing with, it is bound to improve the way they approach for final buyers during selling process. Also middlemen at all distribution levels have been found to mould the consumer attitudes towards products.
The employees of the sales department have been found to formulate basic product service policies and executing them. The policies have been found to impact final buyer attitudes and also the comfort with which initial sales can be made.
There needs to be suitable provisions for adjustments, repairs, replacements in case products fail to perform in the market. The queries and complaints of final buyers need to be responded to without any delay and this is sure to improve buyer relations.
Interview Question # Q.95. What is the relationship between sales department and industry?
Ans. There are various objectives of associating with the trade out of which there are two that are of interest to executives of the sales department. First is the objective to interpret the industry and its problems to outside publics and second is the objective to encourage member companies to act in the interest of public.
Trade association advertising is an activity that takes care of the first objective while studies of attitudes and opinions of final buyers toward the industry and counseling on public relation problems are activities directed at the second objective.
Associating with the trade have various factors that needs the attention of sales executives. Some trade associations serve as clearing houses for industry production and is useful to individual companies for planning and controlling their activities. There are some other companies that sponsor employee training programs and conduct MDPs that serve as modes to reach educational, governmental and press publics.
In cases, where industry products are in strong competition with those of other companies, it is quite usual for a trade association to coordinate advertising and other promotion efforts to trigger primary demand. The sales executives have often been found to have additional contacts with competitors and other business executives through several professional and service organizations.
In this context, participation in local business clubs and service groups pays rich dividends. The sales executives of any company should always keep in mind to refrain from making bad comments on competitors. Rather they should speak about their own strengths and the uniqueness of their product features.
Interview Question # Q.96. What is the relationship that sales departments have with the government?
Ans. In any country, rules and regulations impacting sales organizations are consistently modified to protect company and industry interests. This does not mean that government of any country should be viewed as only a source of regulation but there are certain other areas of government activity that plays a more defining role in selling activity.
In the context of many products, government units are the largest buyers and it is often the government purchases that account for important share of total sales for a company. Products like paper, office equipments, furnishings, computers etc. are often bought in huge quantities by various government units. The government business sometimes is extremely crucial because of which specialized staffs are formed for negotiating and administering government contracts.
The effective sales executives in any company are the ones who appreciate the fact that government creates income for millions of consumers (be it the government employees or those who receive income from governmental sources including retired government employees, holders of government securities etc.).
There are many agencies of government that are involved with activities that impact sales executives. The sales executives have often found to implement government relation programs and they are found to expedite the process of gathering data needed by the statistical agencies of the government.
Interview Question # Q.97. What is the role played by sales departments in maintaining suitable relationships with the educational institutions?
Ans. Sales department plays a significant role in educational relations. The final buyer public often receive their first and most lasting impression of the business system during their years in school. It is a matter of fact that that schools serve as training grounds for future dealers, distributors, sales personnel and sales executives. Schools are found to be important customers for many products.
The world of education has been found to provide many services to sales executives. Schools of business, research bureaus and various other entities conduct studies on relevant problems and make the results available. There are many universities that offer management developments programs to sales executives for blending their own experience with scholarly thinking.
The sales executives are found often to propagate educational relation programs by collecting and preparing teaching materials and helping educators do suitable research. Higher level sales executives often visit various b-schools to deliver guest lectures and also play a defining role in the development of case studies.
They take an active interest in the welfare of schools and also offer support to improve the educational system. However in cultivating educational relations, sales executives find one important hurdle and that is the general lack of interest among the students to take up selling as a career.
So here lies the challenge for the sales professionals to educate future sales professionals in such a way that they are not just fully aware of the benefits of the selling career but are informed and motivated to take up selling in the right spirit.
Interview Question # Q.98. What is the relationship that sales departments share with the press publics?
Ans. When we mention the word press, it generally includes writers, editors of newspapers, magazines, trade journals and also those involved anchoring news programs on television and other broadcasting media.
In case there are any unfavorable media comments about a company in the context of its policies, products etc., it can damage a company’s reputation. Bad publicity not only depletes the sales of a company but this also adds to the cost of sales.
Positive relationships with the press publics always the serves the company in a good way and if that is planned properly in conjunction with personal selling and advertising, it can work wonders for a sales organization.
However there are few simple rules to be observed by the sales executives in managing suitable relationships with the press publics. Proper business stories should be offered to the press to be propagated. Certain stories related to the introduction of new products and improvements, new models promotional plans etc. along with proper management of the space that is meant for paid advertising in the press are required.
If there is a news story that is likely to present the company or the products of the company in an unfavorable way, it is always better to provide reporters another press publics with pertinent details than to ask the story to be suppressed. Effective sales executives are found to maintain open door policy with press publics and they are found to consider all press publics as equals with having any sort of discrimination.
Interview Question # Q.99. Describe the role of marketing mix and positioning?
Ans. Decisions regarding retail marketing mix lead to the development of certain unique retail positioning strategy. Customer satisfaction can be achieved when the elements of retail marketing mix are well coordinated and any level of inconsistency in the retail marketing mix can actually negatively impact the branding process of a retail store.
The retail marketing mix can be viewed in terms of four major aspects viz. merchandise characteristics, trading format, customer service characteristics and customer communication. The four major aspects mentioned above include all the major selling decisions in the context of a retail organization.
All the above aspects are well integrated and hence they cannot be considered in isolation. The merchandise characteristics and customer communications will have something to do with the trading format and similarly the capacity of the retailer to service customers will decide on the trading format that will best serve the retailer.
Interview Question # Q.100. What is sales budget?
Ans. A sales budget comprises of estimates of expected volume of sales and selling expenses. The sales volume part of the sales budget is based on the sales forecasting.
A sales volume budget obtained from sales forecasting can be broken down into:
a. Product wise quantities a
b. Territory wise quantities
c. Customer wise and sales person wise sales volume quota
The selling expenditure budget consists of the selling expense budget and the sales department administration budget. The selling expense budget includes expenses for personal selling activities such as salaries, incentives and other such expenses for the sales force.
The administrative budget for the sales department includes salaries of territory sales managers, sales supervisors, their secretaries and office staff. The budget also includes operating expenses like rent, power, supplies; office equipments etc.
The above help us understand that sales managers are concerned with preparing three types of budgets viz. sales volume budget, selling expense budget and administrative budget for the sales department.