MMPC-006 Solved Question Paper

Question 1. How is modern marketing different from old-style “selling”, and what are the main elements of the marketing mix?

(a) Selling vs. marketing in today’s context

Selling is about pushing what the company has already produced. Marketing is about first understanding what people really need, then designing and delivering the right offering to them profitably.

Key differences, in simple terms:

• Starting point
  Selling starts from the factory: “We have this product; how do we push it?” Marketing starts from the customer: “What problems do they have, and what solution should we create?”
• Focus
  Selling focuses on short-term sales targets – clearing inventory, meeting this month’s numbers. Marketing focuses on long-term relationships – satisfaction, loyalty, lifetime value.
• Tools
  Selling relies heavily on aggressive promotion and persuasion (personal selling, hard sales pitches). Marketing uses the full mix – product design, pricing, distribution and communication – to make the product genuinely attractive so it almost “sells itself”.
• View of profit
  Selling thinks: “If I sell more units, I make more profit.” Marketing thinks: “If I create value and keep customers happy, profit will follow over time.”

Real-life feel: Think of a pushy broadband salesperson at your gate promising anything for you to sign today (selling mind-set) versus a telecom brand that studies student usage, offers realistic data packs, good app support and responsive customer care so you naturally choose and stay with them (marketing mind-set).

(b) Elements of the marketing mix (4Ps + 3Ps for services)

The basic marketing mix has four classic elements (4Ps). For services, three more Ps are added.

• Product – What you offer to solve a need: features, quality, design, packaging, brand, after-sales support.
  Example: For a budget smartphone, decisions include screen size, camera quality, battery, pre-installed apps, warranty and accessories.
• Price – What the customer pays and how: list price, discounts, payment terms, financing options.
  Example: An OTT platform offers monthly, yearly and student plans, plus occasional cashback with UPI wallets.
• Place (Distribution) – How the product reaches customers: channels, outlets, logistics, online platforms.
  Example: A cosmetic brand sells through chemists, modern retail, its own website and marketplaces like Amazon so customers can buy wherever they are comfortable.
• Promotion – How you communicate value: advertising, sales promotions, PR, personal selling, digital campaigns.
  Example: A new energy drink uses Instagram reels, college events, limited-period price offers and standees in gyms.

For services (like banks, restaurants, hospitals), three extra Ps matter a lot:

• People – Staff and their skills, attitude, and behaviour (front desk, call centre, delivery partners).
• Process – Steps through which the service is delivered: waiting time, paperwork, complaint handling, digital flows.
• Physical evidence – Tangible cues of quality: ambience, cleanliness, signage, website/app design, uniforms, printed materials.

In practice, good marketing means carefully coordinating all these elements instead of treating promotion alone as “marketing”.

Question 2. How would you segment the markets for electric vehicles and smartphones, and how do organisations usually buy products and services?

(a) Segmenting the markets: E-vehicles and smartphones

Market segmentation means dividing the broad market into groups of customers with similar needs or characteristics so that you can design focused offerings for each.

Electric vehicles (EVs) – useful bases and segments:

• Geographic – Big cities with charging infrastructure vs small towns and highways. Example: Target metro users who have parking spots where chargers can be installed.
• Demographic – Income, life stage, profession. Example segments:
  • Upper-middle income families wanting a second car for city use.
  • Fleet operators (cabs, last-mile delivery) focused on running cost.
• Psychographic – Values and lifestyle. Example segments:
  • Environmentally conscious consumers who care about emissions.
  • Tech-savvy early adopters who like trying new gadgets, apps, connected cars.
• Behavioural – Usage and benefits sought. Example segments:
  • Heavy daily commuters who want low cost per km.
  • Short-distance city drivers who value silent driving and easy parking more than range.

Smartphones – typical segmentation bases:

• Price sensitivity – Entry-level buyers (₹6–10k range), mid-range (₹15–25k), premium flagships (₹50k+).
• Age / life stage – Teenagers (gaming, selfie camera, social media), working professionals (productivity, battery life, email), senior citizens (large fonts, simple UI).
• Usage/benefits –
  • Camera-first segment: wants multi-lens, night mode, OIS.
  • Performance-first segment: high RAM, fast processor, cooling for gaming.
  • Battery-first segment: 5000+ mAh, fast charging, power-saving modes.
• Brand attitude – Brand-loyal users (always buy Apple/Samsung) vs switchers hunting best specs each year.

In real life, marketers often combine these variables – for instance, “urban, 20–30 years, mid-income, heavy social media user” as a target profile for a selfie-focused phone.

(b) Process of organisational buying

Organisations (businesses, hospitals, colleges, government) buy in a more formal, multi-step way compared to individual consumers. A typical buying process:

1. Problem recognition – Someone realises a need.
   Example: A hospital finds its existing X-ray machine obsolete and unreliable.
2. General need description – Broadly describing what is required.
   Example: “We need a digital imaging solution with faster processing and lower radiation.”
3. Product specification – Technical details are finalised (capacity, features, standards). Often engineers and doctors sit together to draft it.
4. Supplier search – Inviting quotations or tenders, checking vendor reputation, demos.
5. Proposal evaluation and supplier selection – Comparing offers on price, quality, service, training, warranty, financing. A buying committee usually takes the call.
6. Order-routine specification – Final order details: quantities, delivery schedule, payment terms, installation, penalties for delays, service level agreements.
7. Performance review – After some months, they review whether the vendor kept their promises (uptime, service response). This affects future purchases and renewals.

From real corporate experience, multiple people influence the decision – users (staff), influencers (technical experts), buyers (purchase department), deciders (top management) and gatekeepers (admin, IT). Understanding each role helps marketers sell better to organisations.

Question 3. What branding strategies can a company follow, and how does the product life cycle influence pricing decisions?

(a) Major branding strategy options with pros and cons

Branding strategy is about how a firm uses names, logos and identities across its product range.

• Individual (separate) brands – Each product has its own name.
  Example: Different detergent brands from the same company. Advantages: Failure of one brand doesn’t hurt others; you can target different segments sharply. Disadvantages: High cost of building each brand separately.
• Family / umbrella brand – One brand across many related products.
  Example: One electronics brand name for TVs, washing machines, ACs. Advantages: New products benefit from existing brand trust; lower promotion cost. Risks: If one product fails or faces quality issues, the image of all may suffer.
• Corporate / company brand – Emphasis on the company name as trust mark (e.g., a diversified group using its name across categories). Good when the company’s reputation is strong in quality and ethics.
• Line extensions – New variants under an existing brand in the same product category (new flavours, pack sizes). Real example: Different flavours and sizes of a popular noodle brand. Helps defend shelf space and cater to micro-segments but can confuse consumers if overdone.
• Brand extensions – Using an existing brand name to enter a new but related category (e.g., a cold drink brand launching packaged juices). Can succeed if the core promise fits; can fail if consumers feel it’s a forced stretch.
• Private/store brands – Retailers create their own brands (e.g., supermarket’s own label for staples or snacks). Higher margins for the retailer but they must ensure acceptable quality.
• Co-branding/ingredient branding – Two brands appear together (e.g., a laptop “with Intel inside”). Can add credibility and differentiation but requires tight coordination between partners.

(b) How product life cycle (PLC) affects pricing

The PLC concept says products typically pass through stages: introduction, growth, maturity and decline. Pricing needs to support the objectives at each stage.

• Introduction stage – Sales are low, costs per unit are high.
  • Price skimming: Set a high initial price to recover R&D and target early adopters (common in high-tech gadgets).
  • Penetration pricing: Keep price low to build market share quickly, discourage competitors (common in telecom/data plans).
  Choice depends on competition, uniqueness and price sensitivity.
• Growth stage – Demand rises, competitors enter.
  • Maintain price or give small reductions to attract more users while still earning good margins.
  • Introduce slightly lower-priced variants or promotional offers to widen the base.
  Example: A successful smartphone model getting a “Lite” variant at lower price.
• Maturity stage – Market is saturated; intense price competition.
  • Use competitive pricing, trade discounts, combo offers, loyalty schemes.
  • Try value-added bundles instead of just price cuts (e.g., free accessories, extended warranty).
  Here, companies fight to defend market share while protecting profitability.
• Decline stage – Sales fall because of new technologies or changing tastes.
  • Either harvest (keep price but reduce marketing costs to squeeze remaining profit) or
  • Drop prices to clear stock and exit the category.
  Example: Deep discounts on older generation TVs or phones when a new technology arrives.

Managers who align pricing with PLC stages usually find it easier to manage both volume and margins over the life of the product.

Question 4. How has retailing changed in the digital age, and how can companies modify their products for rural markets?

(a) Retailing in the digital age – what has really changed?

Retailing today is no longer only about physical shops; it is about an integrated online–offline experience.

• Omnichannel shopping – Customers discover products on Instagram, compare on marketplaces, and may buy online or at a nearby store. Retailers therefore combine apps, websites, stores and call centres.
• 24×7 availability and convenience – E-commerce and quick-commerce (10–30 minute delivery) have trained customers to expect fast, home-delivered solutions, from groceries to medicines.
• Data-driven personalisation – Online retailers track browsing and purchase history to recommend products, send customised offers and re-engage with abandoned carts.
• Digital payments and fintech – UPI, wallets, BNPL (buy now pay later) and EMI schemes have removed friction at checkout and boosted average order value.
• Stores as experience centres – Many big brands use physical stores for demos, trials and service, while the actual purchase may still happen online. For example, customers test a smartphone in store, scan a QR and order it for home delivery.
• Small retailers going digital – Kirana stores use WhatsApp orders, local delivery apps and digital payment QR codes to stay relevant and widen their catchment.

From a student’s perspective, think of your last one month: maybe you ordered food via app, groceries on a quick-commerce platform, clothes from an e-tail site and still visited a local shop for emergency items – that mix is the new retail reality.

(b) Strategies for product modification in rural markets

Rural markets often differ from urban ones in income levels, infrastructure, literacy and culture, so “copy-paste” urban products don’t always work.

• Smaller pack sizes and low unit price – Single-use sachets for shampoo, detergent or snacks suit cash-flow patterns of daily wage earners and reduce perceived risk.
• Rugged, simple product design – Devices may need dust-proof bodies, stronger casings, manual overrides and ability to work with voltage fluctuation (e.g., robust feature phones, farm tools).
• Local taste and usage – Food products may be adapted to local flavour profiles (spice level, sweetness), while agri-inputs are tailored to crops and soil of the region.
• Easy-to-understand communication – Use local language on packs, pictorial instructions for low-literacy users, and symbols instead of complex text.
• Multi-utility and family-oriented offerings – Products that serve more than one purpose (for example, a detergent suitable for clothes and utensils) can be attractive in households trying to minimise SKUs.
• Re-thinking packaging – Strong, moisture-resistant, re-sealable packs that survive long transport and storage in village shops; bright colours and visible MRP to signal authenticity.

Marketers who regularly visit villages, talk to shopkeepers and observe actual usage (e.g., how women carry water, cook, store grains) tend to design more successful rural product adaptations than those who rely only on office assumptions.

Question 5. In services like banking and restaurants, what role does physical evidence play, how important are service employees, and in what ways can customers influence one another?

Attributes of physical evidence in a bank

In services, customers judge quality from what they can see and feel around them – the “servicescape”.

• Exterior cues – Clean, well-marked branch, safe location, visible ATM, clear signage showing working hours.
• Interior design – Comfortable seating, clear token/queue system, separate counters for senior citizens, proper lighting and ventilation.
• Communication materials – Neat forms, brochures, posters explaining products, digital screens showing interest rates and services.
• Technology interface – ATM quality, speed of internet banking site/app, SMS alerts, kiosk machines for passbook printing.
• Staff appearance – Uniforms or dress code, ID badges, professional yet approachable look.

As a customer, if you walk into a cramped, chaotic branch with peeling paint and confusing counters, you immediately doubt the bank’s efficiency, even before you speak to anyone.

Attributes of physical evidence in a restaurant

• Ambience – Cleanliness, décor, music, lighting, temperature, smell of the place.
• Layout and seating – Comfortable chairs, reasonable spacing between tables, clear pathways.
• Tableware and menu – Clean plates and glasses, attractive menu design with readable fonts and photos, visible hygiene ratings if any.
• Visible kitchen or hygienic serving area – Many modern outlets show at least a part of the kitchen to signal transparency.
• Billing and payment area – Clear bills, digital payment options, tip policy.

Most of us have walked out of a place simply because the washroom was dirty or the tablecloth had stains – that’s physical evidence directly affecting our decision.

Role of service personnel (bank staff and restaurant staff)

In both cases, employees are the “face” of the brand.

• Creating first impressions – A warm greeting from a bank’s relationship manager or a restaurant host can instantly relax a nervous or hungry customer.
• Explaining options – Bank staff guide customers on choosing the right account, loan or investment; restaurant servers explain dishes, spice levels and portion sizes.
• Service quality and reliability – Accuracy in banking transactions, prompt issue resolution, correct bills, timely food delivery – all depend on trained, motivated staff.
• Handling complaints – How front-line staff respond when something goes wrong (wrong order, failed transaction) often decides whether the customer stays or leaves forever.

From real workplace experience, the same process and building can feel totally different in two branches simply because one has helpful staff and the other has indifferent staff.

How customers influence other customers

In services, customers share the space and directly affect each other’s experience.

• On-site behaviour – In a bank, impatient customers shouting at staff increase perceived chaos and stress everyone; disciplined queues make the service feel smoother. In a restaurant, noisy groups or people using phones on speaker spoil the ambience for others.
• Social proof and observation – New customers watch what others are doing: which counter they go to, whether they sign forms, which dishes are being ordered most. This helps them decide quickly, reducing anxiety.
• Word-of-mouth and online reviews – Experiences shared via conversation, WhatsApp groups, Google reviews or Zomato ratings strongly influence whether others will try that bank/restaurant at all.
• Customer communities – Some banks run sessions for investors; satisfied customers bring friends. Restaurants encourage group photos or check-ins on social media, turning customers into informal promoters.

For managers, the lesson is clear: design the servicescape and processes so that both employees and customers are guided towards behaviours that create a positive, comfortable atmosphere for everyone.