A-AS Level (CIE) Business Studies Paper-3: Specimen Questions with Answers 1 - 2 of 20

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Case Study -1

Music and youth go hand in hand. It was this generalization, based on observations, that made Akio Morita, the legendary chairman of Sony Corporation, launch the Walkman. Television channels and Internet thus dedicated channels to music for the young in keeping with the times. Television channels (V) , MTV, and Napster Country Music on the Net and Planet M — the music store for the youth are the symbols of today՚s youth. Channel [V] was launched as a young western music channel. Soon it was overtaken by MTV which reflected the Indian Youth՚s performances in a better way, MTV brought in the language that young people used in common conversation. A combination of English and Hindi, nicknamed- Hinglish is the lingua franca of MTV. It introduced Hindi music and reveled in making fun of itself. Today՚s youth are more casual and willing to take shots at themselves. In 1999, Channel [V] decided to fight back by positioning itself as a youth channel and dumping its previous music channel image. The channel announced 21 new pro grammes, 19 of which were non-music. The new programmes were targeted at the Indian youth, who believed in substance rather than style alone. According to the in house research of Channel [V] , the youth of India was less swayed by music than their Parents feared. The youth think about relationships, career, sex, AIDS, and politics. This market was looking for information which no channel provided the youth had matured in terms of tastes. These findings made Channel [V] reduce its music component to 50 to 60 percent. The balance were programmes dedicated to information on career, fashion, gadgets, and so forth. With this revamp, [V] aims to keep the wandering young surfer hooked. Accordingly, it reoriented its programming to three main segments-teen, main stream, and the young adult. This classification was based on prime time for these three sub-segments of the youth market. The rationale for determining prime time for these segments was: The youth had no control over what the family watched during the family prime time (7: 00 pm to 10: 00 pm)

  • The 13 - 19-year-old watched TV either prior to school timing or immediately after that (i.e.. 7 - 10 am and 4 - 7 pm)
  • The young adult watched TV after 10: 00 pm Backed with this research, [V] decided to market itself on air, on ground, and online. On ground, it decided to organize events, enter tie ups with other brands and music stores like Planet M (the music store with a youth image promoted by the Times of India group) , and with Catcher with the youth merchandise.

Thus, the challenge in marketing for youth goes beyond a simple product development. It involves continuously researching and customizing the marketing mix on an ongoing basis.

Question 1 (1 of 10 Based on Passage)

Write in Short Short Answer▾

What is segmentation?



Market Segmentation is the process of dividing a heterogeneous market into homogeneous sub units. The total population of a market indicates only the market size. This, however does not indicate anything more. And the marketer must identify similarities among different groups of customers. It involves dividing a broad market into subset of consumers, business or countries who share common need, interest, and priorities and then strategies are designed and implemented to target the market.

Question 2 (2 of 10 Based on Passage)

Describe in Detail Essay▾

What are three buying situations that exist in an organization?



There are three buying situations that exist in organization buying

  • Straight Rebuy This is a buying situation, where the customer generally repeats his choice Characterized by vendor or source loyalty, the buyer generally repeats the order specifying product type and commercial terms.
  • Modified Rebuy It occurs when customer change their requirements, either in terms of quantity product type specification. This also occurs, when a new competitor enters the market, offering product bought by the customer at a price lower than that of the existing vendors or at terms more favorable than those of existing vendors. In modified rebuy, customer decision goes through buy phases, from vendor qualification to review or feedback.
  • New Task This buying situation is characterized by the first-time purchase of a product. A marketer must be aware of these buy phases and buying situations as well as the relationship between the two for example, if the buying situation is a straight rebuy and he has been the supplier he must-then-ensure that he has a positive feedback. This will involve maintaining delivery schedules, continuously monitoring different DMUS feedback, and building a cordial business relationship. In any case, the challenge to a new marketer is to convert a straight rebuy situation into a modified rebuy situation

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