Target Exam

CUET

Subject

Business Studies

Chapter

Marketing

Question:

Read the following case study and answer question.

Sumit and Rachit are running a company processing coffee powder with a unique name 'Mad over Coffee'. It has a widely established market because of its excellent quality and distinct flavours. They don't have too many competitors in the market. As a result, they are in a position to keep the price of their products high. But the company is not providing after sales service. It doesn't take feedback from its customers. They soon realised this and bounced back. They appointed Raghav, a young energetic, as marketing manager. Raghav suggested diversification and expansion of staff. They added new flavours to their existing product range. They also ventured into tea processing, cocoa powder, and protein mix.

For this, he estimated the additional manpower requirement and finally after completing the staffing process, he managed to get a good team of sales personnel. He modified their packaging, making it more attractive and reusable. They started providing more details about their products on their labels. To promote their sales they started offering extra quantity (20% extra) in each pack.

A variety of programmes were designed by him to promote or protect the company's image and its individual products in the eyes of public.

They started advertising their products on TV and Social media.

"The company started losing its customers because they ignored a very important function of marketing".

Which function was not being performed?

Options:

Branding

Standardisation

Customer support services

Packaging

Correct Answer:

Customer support services

Explanation:

The correct answer is option (3)- Customer support services.

The function of marketing that was not being performed, leading to the company losing customers, is Customer support services.

Customer support services are crucial for maintaining customer satisfaction and loyalty. If a company ignores this function, it can lead to dissatisfaction, frustration, and ultimately, the loss of customers. Quality customer support helps resolve issues, answer queries, and enhance the overall customer experience, which is vital for retaining customers.

 

OTHER OPTIONS

  • Branding - A very important decision area for marketing of most consumer products is whether to sell the product in its generic name (name of the category of the product, say Fan, Pen, etc.) or to sell them in a brand name (such as Pollar Fan or Rottomac Pen). Brand name helps in creating product differentiation, i.e., providing basis for distinguishing the product of a firm with that of the competitor, which in turn, helps in building customer’s loyality and in promoting its sale.
  • Packaging refers to designing and developing the package for the products.
  • Standardisation refers to producing goods of predetermined specifications, which helps in achieving uniformity and consistency in the output. Standardisation ensures the buyers that goods conform to the predetermined standards of quality, price and packaging and reduces the need for inspection, testing and evaluation of the products.