B.Com. LL.B. (Five Years) Sem 3 Marketing and Services Management 2019 Dec Question Paper with Solutions

2. Lower risk. Research before launch shows whether buyers want the product, at what price and in what size. A firm that skips this step may build a factory for a product nobody buys.
3. Planning of production. Sales forecasts tell the factory how much to make, in which variants and in which season.
4. Growth. New segments, new regions and new uses for a product let a firm grow beyond its first market.
5. Goodwill. A trusted brand and loyal buyers are an asset that keeps earning even in a weak year.

2. To the consumer

1. Right product. Products are designed around what buyers say they need, not around what a factory finds easy to make.
2. Right place and time. Distribution puts goods within reach of the buyer when he needs them.
3. Information. Labels, advertisements and salespersons tell buyers what a product does and what it costs.
4. Choice at many price points. Competition produces small packs, budget models and premium versions for different households.

3. To the economy and society

1. Maximise consumption. The aim is to make people buy and use as much as possible, because more consumption means more production, jobs and income. Criticism: more goods do not always mean more happiness.
2. Maximise consumer satisfaction. The aim is not more buying but more satisfied buyers. Difficulty: satisfaction is hard to measure.
3. Maximise choice. The aim is to give buyers the widest variety of products, so each can find what suits him. Difficulty: more variety raises costs and can confuse buyers.
4. Maximise quality of life. The aim is to improve the quality of goods, the quality of the environment and the quality of people's lives. This is the broadest goal and the hardest to measure, but most modern thinking supports it.

2. Goals a firm pursues through marketing

1. Creating and keeping customers. A business exists only as long as it has customers who choose it.
2. Customer satisfaction. A satisfied buyer returns and recommends the firm to others.
3. Profitable sales. The firm aims at sales that earn a profit, not at sales at any cost.

2. Product and price (importance to the consumer): it launches a Rs 20 pack that fits a daily budget.
3. Place: it supplies tea stalls, bakeries and office canteens instead of waiting for buyers to visit its shop.
4. Goals: it aims at repeat buyers (satisfaction) and a fair margin on each pack (profit). It also aims at a known local brand (goodwill) and less sugar and oil than rival snacks (social responsibility).

Reading the example. The snack did not change, but marketing found the buyer, the pack size, the price and the outlets. That is the importance of marketing in practice, and the goals tell the firm what success means.

Conclusion. Marketing is important because it brings in revenue, lowers risk, guides production and builds goodwill for the firm. It gives consumers the right product at the right place with full information. It also creates jobs and raises living standards for society. For society, its goals range from maximising consumption, satisfaction and choice to maximising quality of life. For the firm, its goals are customers, satisfaction, profit, share, goodwill, growth and responsibility. A good marketer balances these goals, with customer satisfaction as the common thread.