Chapter 15 — Recent Trends in Marketing: Exercise Solutions
I. Choose the Correct Answer (MCQ)
Q1. Which one of the following is not a recent trend in marketing? (a) E-business ✓ (b) Green marketing (c) Service marketing (d) Social marketing
Note: E-business is the broader category, not a "trend" in marketing itself.
Q2. The device that converts digital signals to analog signals is \_\_\_\_\_\_ (a) Router (b) Modem ✓ (c) Switch (d) Hub
Q3. Social marketing has the objective of \_\_\_\_\_\_ (a) Profit (b) Service (c) Social change ✓ (d) Business
Q4. Which one is not related to E-marketing? (a) Seller to buyer (b) Customer to buyer ✓ (c) Buyer to seller (d) All the above
Q5. The electronic catalogue is an advantage of \_\_\_\_\_\_ (a) Traditional marketing (b) E-marketing (c) E-tailing (d) Electronic catalogue ✓
Q6. \_\_\_\_\_\_ brings buyers and sellers together and earns a commission. (a) Metomediary (b) Transaction brokers ✓ (c) E-tailer (d) Search engine
Q7. Which one is not a commodity exchange product? (a) Gold (b) Rice ✓ (c) Silver (d) Crude oil
Q8. Which one of the following is odd? (a) E-Banking (b) E-Marketing (c) E-Tailing (d) Traditional marketing ✓
Q9. \_\_\_\_\_\_ is the holistic marketing approach with global warming awareness. (a) Service marketing (b) Social marketing (c) Green marketing ✓ (d) Rural marketing
Q10. Match: Service marketing — Anti-drug campaign is \_\_\_\_\_\_ correctly matched? (a) Correctly matched (b) Not correctly matched ✓
Q11. \_\_\_\_\_\_ connects buyers and sellers through a website without owning the goods. (a) E-tailer (b) Metomediary ✓ (c) Transaction broker (d) Search engine
Q12. ACME group introduced the concept of \_\_\_\_\_\_ (a) Green Shelter ✓ (b) Rural marketing (c) Social marketing (d) E-tailing
II. Match the Following
Q1.
| Column I | Column II | ||
|---|---|---|---|
| i | Green marketing | 4 | Friendly products ✓ |
| ii | Service marketing | 3 | Banking ✓ |
| iii | Social marketing | 1 | Road safety ✓ |
| iv | Rural marketing | 2 | FMCG ✓ |
Q2.
| Column I | Column II | ||
|---|---|---|---|
| i | Niche marketing | 2 | Defined segment ✓ |
| ii | Viral marketing | 3 | Virus from person to person ✓ |
| iii | Ambush marketing | 1 | Without paying sponsoring expenses ✓ |
| iv | Guerilla marketing | 4 | Unconventional promotions ✓ |
Q3.
| Column I | Column II | ||
|---|---|---|---|
| i | Multilevel marketing | 4 | Recruit new distributors ✓ |
| ii | Referral marketing | 3 | Spreading the word ✓ |
| iii | Content marketing | 2 | Art of communicating ✓ |
| iv | Commodity exchange | 1 | Buyers accept delivery ✓ |
III. Assertion and Reason
Q1. Assertion (A): There is no market in niche market. Reason (R): Niche market is found by identifying unmet needs. Answer: Both A and R are true. R is the correct explanation of A. ✓
Q2. Assertion (A): Offer more for less is the strategy of e-marketing. Reason (R): E-marketing uses computers and smartphones. Answer: Both A and R are true. R is the correct explanation of A. ✓
IV. Very Short Answer Questions
Q1. What is E-Business? E-Business refers to all business transactions conducted through the internet. It encompasses buying, selling, and servicing over electronic platforms.
Q2. Define Green Marketing. Green marketing is a holistic marketing approach with awareness of global warming, non-biodegradable solid waste, and pollutants. It is also known as Environmental Marketing, Ecological Marketing, Eco-friendly Marketing, or Sustainable Marketing.
Q3. What is Service Marketing? Service marketing is the marketing and selling of service goods such as telecommunications, banking, insurance, healthcare, and other intangible offerings.
Q4. Define E-Marketing (Judy Strauss). According to Judy Strauss, E-Marketing is the application of information technology for creating, communicating, and delivering customer value through segmentation, targeting, differentiation, and positioning.
Q5. What is E-Tailing? E-Tailing refers to selling goods and services through a shopping website or the internet. It is the online version of retail selling.
Q6. What is Social Marketing? Social marketing is the systematic application of marketing philosophy to achieve behavioural goals for social good. Examples include campaigns for no smoking in public places and road safety awareness.
V. Short Answer Questions
Q1. What are the advantages of E-Marketing?
- 24/7 service availability — consumers can shop at any time
- Direct contact between buyer and seller cuts intermediation cost
- Ability to browse various sites and compare products easily
- Offer more for less — better prices due to reduced overheads
Q2. State the objectives of E-Marketing (EARS).
- Expansion of market share
- Achieving brand awareness
- Reduction of distribution and promotional expenses
- Strengthening database of customers
Q3. What is Niche Marketing? Niche marketing is a strategy that directs marketing efforts to one well-defined segment. No existing market is found; instead, it is discovered by identifying unmet needs. It is described as being a "big fish in a small pond." The marketer focuses on a narrow, specialised segment rather than the broad market.
VI. Long Answer Questions
Q1. Compare Traditional Marketing and E-Marketing.
| Feature | Traditional Marketing | E-Marketing |
|---|---|---|
| Speed | Slower | Faster ✓ |
| Cost | Expensive | Economical ✓ |
| Expansion | Needs more manpower | Expand with minimum manpower ✓ |
| Time required | More time | Short time ✓ |
| Availability | Not possible to sell year-round | Sold year-round ✓ |
Q2. Explain the advantages and disadvantages of E-Tailing. Advantages:
- Consumers can buy goods anytime and anywhere through internet
- Direct contact between buyer and seller reduces intermediation cost
- Consumers can browse various sites and compare prices
- Electronic catalogues help in product selection
Disadvantages:
- Requires strong advertisement spending to attract customers
- Not suitable for small businesses with limited budgets
- Lack of physical interaction with products before purchase
- Security concerns regarding online payments
Q3. Explain any two new marketing methods in detail. 1. Rural Marketing: Rural marketing involves developing, pricing, promoting, and distributing rural-specific goods and services. India's vast rural population offers enormous market potential. FMCG companies, telecom providers, and banking services increasingly target rural segments with customised products and pricing strategies.
2. Service Marketing: Service marketing involves selling service goods which are mostly intangible. Services like telecommunications, banking, insurance, and healthcare require different marketing approaches than physical products. Key characteristics include intangibility, inseparability, variability, and perishability. Anti-drug campaigns and public health initiatives also fall under service marketing.
Q4. Explain the following strategies: Viral, Guerilla, Referral, Ambush, Multilevel, Content Marketing.
- Viral Marketing: Marketing messages spread like a virus from person to person through social media and online platforms.
- Guerilla Marketing: Unconventional promotions carried out on streets and in public places to create buzz with minimal budget.
- Referral Marketing: Promoting products through existing customers who spread the word to their network.
- Ambush Marketing: Connecting a product or brand to an event without paying the sponsorship expenses — riding on the popularity of an event.
- Multilevel Marketing (MLM): Recruiting new distributors who in turn recruit more distributors, creating multiple levels of compensation.
- Content Marketing: The art of communicating with customers without directly selling — creating valuable, relevant content to attract and retain a defined audience.
Q5. Distinguish Social Marketing and Service Marketing.
| Feature | Social Marketing | Service Marketing |
|---|---|---|
| Branch | Branch of marketing | Branch of marketing |
| Objective | Ensures social good and welfare | Selling service goods for profit |
| Aim | Eradicate social evils | Provide intangible services |
| Primary aim | Behavioural change for social good | Customer satisfaction and revenue |
| Examples | Road safety campaigns, anti-smoking | Banking, insurance, healthcare |
Common Mistakes to Avoid
1. Green Marketing vs. Social Marketing — Green marketing focuses on environmental concerns (global warming, pollution). Social marketing focuses on behavioural change for social good (road safety, anti-smoking). Do not confuse the two. 2. Metomediary vs. Transaction Broker — A metomediary connects buyers and sellers through a website without owning goods. A transaction broker brings buyers and sellers together and earns commission. 3. EARS acronym — Expansion, Achieving brand awareness, Reduction of expenses, Strengthening database. Do not mix up the letters. 4. Niche Marketing — Remember: there is no existing market in niche marketing; it is found by identifying unmet needs. This is why "big fish in small pond" applies. 5. Service Marketing — Anti-drug campaign pairing — This is NOT correctly matched in textbook exercises. Anti-drug campaigns fall under social marketing, not service marketing.
Exam Checklist
- [ ] Can define E-Business, E-Marketing, E-Tailing, Green Marketing, Service Marketing, Social Marketing
- [ ] Can compare traditional vs. e-marketing (speed, cost, expansion, time, availability)
- [ ] Know EARS objectives of e-marketing
- [ ] Can explain niche marketing and the "big fish in small pond" concept
- [ ] Can distinguish social marketing from service marketing
- [ ] Can match green marketing, service marketing, social marketing, rural marketing correctly
- [ ] Can explain six marketing strategies: viral, guerilla, referral, ambush, multilevel, content
- [ ] Know advantages and disadvantages of e-tailing