Aspirant Academy

Society, Management and Accounting

Predicted Questions with Model Answers

Marketing: Mix (Product, Pricing, Promotion, Distribution) & Digital Marketing

Paper I · Unit 3 Section 8 of 10 0 PYQs 21 min
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Predicted Questions with Model Answers

Q1 (5 marks) — What is the Product Life Cycle (PLC)? Explain its stages.

Model Answer:
The PLC traces a product through four stages: (1) Introduction — low sales, high cost, negative profit; (2) Growth — rapid rise, profits peak; (3) Maturity — sales plateau, intense rivalry; (4) Decline — sales fall, firms harvest or exit. FMCG products spend longest in Maturity; marketing mix must adapt at each stage. (49 words)

Q2 (5 marks) — What are the four characteristics of services? (PYQ 2021)

Model Answer:
Services have four IHIP traits: (1) Intangibility — cannot be seen before purchase; (2) Inseparability — production and consumption occur simultaneously; (3) Heterogeneity — quality varies by provider; (4) Perishability — unused capacity is permanently lost. Airlines manage perishability through dynamic pricing and overbooking. These traits require the extended 7Ps mix, not just 4Ps. (48 words)

Q3 (5 marks) — What is digital marketing? Explain its key tools.

Model Answer:
Digital marketing uses internet channels. Key tools: (1) SEO/SEM — organic and paid search; (2) Social Media — Meta, YouTube (750M+ Indian users); (3) Email — $36 ROI per $1 spent; (4) Influencer marketing — India ₹2,344 crore (2023); (5) Content marketing — blogs driving traffic. India's digital ad market: ₹39,000 crore (FY2024). (49 words)

Q4 (5 marks) — What is MICE? Explain its significance.

Model Answer:
MICE stands for Meetings, Incentives, Conferences, Exhibitions — event-based marketing targeting high-value business travellers. India's MICE market: $3.5 billion (2023). ICPB (India Convention Promotion Bureau) positions India as a global MICE hub. Flagship venues: Bharat Mandapam (New Delhi, July 2023) and Yashobhoomi (Dwarka, September 2023). Both are Asia's largest convention centres. (49 words)

Q5 (5 marks) — Explain the 4Ps of the Marketing Mix.

Model Answer:
The 4P Marketing Mix (E. Jerome McCarthy, 1960): (1) Product — features, quality, branding; (2) Price — penetration, skimming, psychological pricing; (3) Place — distribution channels (D2C, retailers, e-commerce); (4) Promotion — advertising, personal selling, PR, sales promotion. All four Ps must align with the target segment's needs to deliver a coherent competitive offer. (51 words)

Q6 (5 marks) — What is market segmentation and what bases are used?

Model Answer:
Market segmentation divides a heterogeneous market into sub-groups with similar needs. Four bases: (1) Geographic — region, urban/rural (FMCG sachets for rural India); (2) Demographic — age, income, gender; (3) Psychographic — lifestyle, values; (4) Behavioural — usage rate, loyalty. With targeting and positioning, segmentation forms the STP model (Philip Kotler) for efficient resource allocation. (50 words)