46. Which among the following is not included in seven Ps of marketing and Bitner?

  • Option : A
  • Explanation : Booms and Bitner suggested in 1981, a seven P’s marketing mix model to service firms. The seven P’s were later supported by McGrath and other marketing specialists.
    The marketing mix for service organisations are product, physical evidence, price, place, people, promotion and process. Fig. exhibits the marketing mix of services. Thus, there are three additional components—physical evidence, people and process in the services marketing mix.
    Components of the Services Marketing Mix
    Product Service is an intangible product. It consists of a bundle of features and benefits that have relevance to a specific target market. As such, there is a high level of flexibility and opportunity to be innovative in designing a product offer.
    Physical evidence: Most services cannot be offered without the support of tangibles. Though customers cannot see the service, they can definitely see the tangibles associated, examine them and try to form an opinion on the service provider, Thus, a passenger transport organisation’s promise of a safe, comfortable and timely journey from one place to another will be examined by the transport vehicle’s condition, seating facilities and other physical facilities, the personality of the driver and other personnel, the office furniture and equipment being used and also the way in which the employees are responding to customers. All these physical objects are used as evidence by the customer to assess and expect performance from the service provider. Hence, physical evidence plays a critical role in shaping consumer perceptions and also expectations.
    marketing mix
    Price: The pricing decision is a critical one in services too, as this component of the marketing mix alone determines the revenue of the firm. Consumer sensitivity to price would be higher in services than in goods. Though the basic methods of pricing are the same as in goods, the pricing strategies for services basically depends upon value perceptions of various groups of people that are targeted by the organisation.
    Place (distribution): Services are intangible as well as inseparable. These two characteristics do not allow a service firm to follow the same channel options available for goods marketing. Due to the intangible character of service, traditional wholesalers and retailers cannot be used. As services cannot be stored and cannot be separated from producers, retailing cannot be an independent activity in services marketing. Production, distribution and consumption are simultaneous activities in services. However, services have an advantage of using a direct selling approach, through which services can be offered to the customer at a lower cost. This does not mean direct selling is the only way of selling the services. There are certainly other channels of distribution such as agents and brokers, franchisers and electronic channels, that are used for distribution of services.
    People: Service organisations are people-oriented and people-based organisations. Employees of a service firm constitute the major competency in undertaking business operations. Every employee of the service organisation is a marketing person, who undertakes either fulltime or part-time marketing activity. Whether an employee is involved in direct contact with the customer or not, if he was placed on the line of visibility, his behaviour, activities and performance will have a direct influence on consumers. Service employees are to be trained and motivated, for better performance in marketing activities.
    Promotion: Consumers are co-producers in the service business. The quality of services will not only depend upon the performance of the service provider but also on the performance of the service consumer. Very few service organisations or service concepts can have readily available mature performers as consumers. It is the responsibility of service organisations to educate and, if necessary, train customers so as to make them prepared to use the services efficiently. A well designed promotional programme is of immense help to organisations to inform, persuade and train customers to better their experiences.
    Process: Process is a functional activity that assures service availability and quality. The way the physical setting is designed technically and how the functions are scheduled and routed to provide promised services to the customers speaks of the efficiency of the process. In simple terms, the management of process is to manage service encounters (the interaction between service employees and customers, customers and service environment, systems and other facilities) effectively. Gronroos has described process as interactive marketing wherein moments of truth occur. The challenges of process management is to improve the moment of truth.
    The seven P’s of services marketing become the marketing offer of the organisation to the target market. The marketing mix aims to achieve seven distinctive goals. They are matching the offer to the consumer needs and wants, consumer quality expectations, consumer perceptions, consumer satisfaction, customer relationships, customer welfare and protection and societal well-being. The dynamic nature of the target market in all the seven distinctive areas offers challenges to marketing organisations. Service firms can be successful only when they make all the marketing mix elements dynamic and adaptable to the changes in the market environment.
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47. Which one among the following is the oldest form of organization?

  • Option : D
  • Explanation : Line Organization: Line organization is the oldest form of an organization. In this, the line of authority flows vertically from top to bottom throughout the entire organizational structure. The person at the highest enjoys the highest authority while the person at the last level has the lowest authority. It is also possible that a business is divided into several departments and the authority flows downward from the general manger through the departmental managers to the lower subordinates. In such a type of structure, the head of the departments enjoy equal status while being independent of each other.
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48. Match the items of List-I with the items of List-II and choose the correct code given below.

(a) The economy was characterised by marketing small regional suppliers who sold goods on a local basis(i) Mass marketing
(b) Standardised,  goods were sold at national level(ii) Hyper-segmentation
(c) Era of market differentiation based on demographic, socio-economic and life style factors(iii) Segmentation
(d) Technological advancements, especially in the area of digital communication, allow marketers to communicate with individual consumers or very small groups(iv) Fragmentation



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49. Merger of two companies under the Board for Industrial and Financial Reconstruction (BIFR) supervision is known as:

  • Option : D
  • Explanation : A number of corporate restructuring ventures were initiated by the Board of Industrial Finance and Reconstruction (BIFR). Most of these restructurings were institutionally driven and the terms and conditions were designed to suit the creditors and lending institutions. Some well-known BIFR cases during the early 1990s, in which a healthy company took over a sick company were: VAM Organic Chemical taking over Ramganga Fertilizer, Straw Products taking over Orissa Synthetic, and Voltas Ltd. taking over Miami Pharma Ltd. In all these cases, BIFR sanction helped the transferee companies enjoy the benefits of carry forward losses of the transferor companies, even though these restructurings were not reverse mergers. As at 1994, BIFR could arrange a merger of only 4.3 per cent of total cases referred to it. The list of approval of BIFR as at 1991 also included merger of two sick public sector companies viz. Bharat Refractories Ltd. and Indian Fire Bricks & Insulation Co. Ltd. The reconstruction proposals Included, among others things, writing off of about Rs.50 crore of interest.
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50. According to Donald Kirkpatrick, training programmes can be evaluated at four levels. Indicate the code of correct sequence from the following:
(i) Result
(ii) Reaction
(iii) Learning
(iv) Behaviour
Choose the correct answer from the code given below:

  • Option : C
  • Explanation : The Kirkpatrick Model
    Level 1: Reaction: The degree to which participants find the training favourable, engaging and relevant to their jobs.
    Level 2: Learning: The degree to which participants acquire the intended knowledge, skills, attitude, confidence and commitment based on their participation in the training. Level
    3: Behaviour: The degree to which participants apply what they learned during training when they are back on the job.
    Level 4: Results: The degree to which targeted outcomes occur as a result of the training and the support and accountability package
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