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1 Do you think the argument of some theorists that the traditional Ps

are not enough for
Services Marketing? Give suitable examples to prove your point.
Ans. Service marketing constitutes a strategic area, which has propelled growth
and success for many organisations. Pure services and products are hypothetical
extremes as every product today is associated with some level of service.
The Traditional 4PS
A marketing mix can be referred to as a planned mix of the controllable
elements of a product's marketing plan, commonly termed as 4Ps:
product, price, place, and promotion.
These four elements are adjusted until the right combination that
serves the needs of the customers, while generating optimum income for
the company is found.
1. Product:
According to Philip Kotler, A product is anything that can be
offered to a market for attention, acquisition, use, or
consumption that might satisfy a need or want.
Products include physical products, services, persons,
places, organisations, and ideas.
Products have various attributes such as quality,
variety, design, brand, packaging, services, and warranties
that can be manipulated depending on what the target
market wants.
2. Price:
It is a value that will purchase a specific quantity, weight, or
other measure of a product.
Price is the only marketing mix variable that can be
altered quickly. Price directly influences.
3. Place:
Place mix deals with the physical distribution of products at
the right time and right place. For example, a customer
usually purchases toiletries from nearby retail stores. His
development of marketing strategy as it is a major factor
that influences the assessment of value obtained by
Distribution channels may also be used in
marketing strategy to differentiate a product from its
A company uses distribution channels like retailers,
wholesalers, merchants, brokers and value added resellers.
4. Promotion:
This includes the methods to communicate the features
and benefits of the products or services to its target
customers. Some common methods include advertising,
sales promotion, direct selling, public relations, and direct

Promotion is a key element of marketing programme that

is used to favourably influence target customers perceptions
to facilitate exchange between the marketer and the

The Additional 3PS

1. People
An essential ingredient to any service provision is the use of
appropriate staff and people.
Recruiting the right staff and training them appropriately to
delivery their services are very essential if the organisation
wants to obtain a competitive advantage.
2. Process
This refers to the way in which a service is delivered to the
end customer.
Service process can be mechanised as well.
3. Physical evidence
Physical evidence is the tangible part of a service. Service
customers experience a greater perceived risk as they cannot
rate a particular service until it is consumed.
Physical evidence can include web pages, paperwork (such as
invoices, tickets, and dispatch notes), brochures, furnishings,
ambience, signage (such as those on aircraft and retail
stores), brand logos, uniform of employees, business cards,
and the building itself.
Q.2 what is sales promotion? Explain any eight tools of sales promotion
directed at consumers.
Ans. Sales promotion programmes are short term programs aimed to
maximizing sales in a period of time. What is most important to remember is that
the sales promotion programme should be designed in such a way that it does
not affect the overall brand image of the firm and its product.
Tools of sales promotion directed as consumer:1) Free Samples- Free samples are generally used to introduce a new
product and as a sales tool to attract the attention of prospective buyers.
2) Catalogues- catalogues are largely used when a firm manufactures
different type of products with distinguished size, shape and other
3) Price-of- A price-off is simply a reduction in the price of the product to
increase sales and is very often used in introducing a new product.
4) Refund- A refund may consist of straight cash, coupon values, or a
product offered to the consumer in return for a proof of purchase of a
specified product or service. Refund is also an effective tool of sales

5) Coupons- These are certificates entitling the owner of the certificate to a

stated saving on the purchase of a particular item. The coupon can be with
the product, attached to the product, with the advertisement, or can be
sent by mail.
6) Premiums- These can be merchandise offered at a lower cost of free as
an incentive to purchase a particular product.
7) Free trials- These trials invite prospects to try the product without any
cost with a hope of closing the sale in the future.
8) Patronage awards- These are the value in cash or in other forms that are
proportional to patronage of a certain vendor or group of vendors.

Q.3 Define Environmental scanning. Explain Delphi technique and

Scenario Building technique of Environmental Scanning.
Ans. Environmental scanning refers to the careful monitoring of an
organisation's internal and external environment for detecting early signs of
opportunities and threats that may influence its present and future marketing
plans. It helps the marketer in taking decisions regarding where to complete,
how to complete, and on what to complete.
The opportunity in business can be a trend or event that could lead to a
significant upward change in sales and profit patterns, given the appropriate
strategic response. In the absence of a strategic response, a threat will result in a
significant downward departure from current sales and profit. Environmental
scanning helps marketing managers to find out the important forces outside an
organisation, which will shape its business in relation to competitors.
Techniques of Environmental scanning:1) Delphi technique
Delphi technique is used to increase the meaning of factual data collected
from secondary sources. This technique is an example of methods on
which we aggregate the judgements of individual experts who cannot
come together physically. This is a qualitative research technique in which
we try to collect data from some experts and industry observes and uses
their interpretations to map the emerging trends in that industry. Around
twenty-five experts who have adequate knowledge of the marketing
environment are asked questions pertaining to the marketing environment
via mail, and other modes of communication. They are asked to rank their
statements as per importance and to explain the rationale behind such
rankings. The aggregate and disagreement on the aggregate data and
through this process a coherent agreement is arrived at.
2) Scenario Building Techniques
This process is futuristic and the decision-maker has to analyse his
decisions with respect to the future. The five stages of scenario building
approach are:1. Analysis of decision.
2. Identification of key decision factors.

3. Identifying of socio-cultural factors.

4. Analysis of each of the key variables separately.
5. Selection of scenario logics.
1. Analysis of decision- The decision-maker makes a detailed analysis of
all the resources that he might require to implement his decisions. Thus, if
a financial institution like ICICI decides to go into real banking, then it has
to take into account the human and material resources that would be
2. Identification of key decision factors- The service marketer
identifies all those variables that influenced his decision. For ICIC to go
into retail banking, it would analyse new banking norms.
3. Identifying of socio-cultural factors- The service marketer should identify
and evaluate the influence of such social and group forces at demographic
changes, social class, culture, family and household influences, value systems,
reference group influence.
4. Analysis of each of the key variables separately- All the above variables
are independently analysed and all other details are collected for each of them.
The sources of data are secondary as well as primary.
5. Selection of scenario logics- The collected data is then extrapolated and
projections are made. The scenario build-up is supported with more evidence.
Thus for ICICI, the growing middle-class and the aspirations of the middle-class
for a better banking climate would be relevant to the decision to go in for retail

Q.4. Personal selling focuses in on personal or one to one selling. It

involves an individual
Salesman or a sales team establishing and building a profitable
relationship with customers over a period of time through a series
of steps. What is personal selling? Explain the steps in the personal
selling process which helps in successful sales.
Ans. Definition of Personal Selling:
Personal selling is an activity which involves a face-to-face interaction with the
customers wherein there is a quick response and personal confrontation. This
allows for more specific adjustment of the message. Here, the communication
message can be adjusted as per the customers specific needs or wants. It offers
you the opportunity to develop long-term familiarity and relationship.
Process or steps in personal selling include the following:

1. Prospecting This is the beginning of sales process, which covers

searching for customers with potential demand.
2. Targeting This is the process of deciding how to allocate sales time among
prospects and existing customers.
3. Pre-approach In this step, the salesperson plans methods to approach the
customers and to collect company and customer information.
4. Communication and approach This is the process of communicating and
contacting the customers. It involves developing a system to greet the
customers and meet them for the sale. Homer B. Smith has recommended
different approaches. The following are some proven techniques:
Ask questions - Questions should preferably be relevant to sales
Use a referral Someone favourably known to the potential customer.
Offer a benefit or service This can be quite effective if relevant to
customers need.
Complement the prospect It is a good way to establish rapport if there is
anything that the prospect has achieved.
5. Presentation and demonstration In this stage, the salesperson gives a
sales presentation and if
Required demonstrates features, advantages, and benefits and value
propositions of the product.
6. Customer objection handling Customers always pose objections during
presentations or when
asked to order. Psychological resistance and logical resistance are the two types
of resistance seen at this stage. The psychological resistance includes resistance
to interference, preference for established brands, apathy, and reluctance to give
up something, etc. The logical resistance includes objections to price, delivery
schedule, or certain companies.
7. Closing Some salespeople do not get to this stage or do not do it well. The
salespeople try to
Close sales after handling the customer objections.
8. Follow up and maintenance The salesman does follow up and retains the
relationship with customers to obtain repeated orders and referrals and ensures
customer satisfaction and repeated business. In the case of consumer durables,
salespeople take care of maintenance.

Q.5 what is buying centre? Explain the seven roles of buying centre and
also specify the role of functional departments in the purchase process.
Ans A major task of an industrial marketer is to identify those individuals who
are in any way involved in purchasing decision process. These decision-making
units are called buying centres. Buying centres can be an individual, a
department, or a group of individuals from different departments in the
Seven roles of buying centres are:-

1) Initiators- These are the people who request for something to be

purchased. They may be users or others in the organisation.
2) Users- They use the products and thus initiate the purchase process. They
report the products performance. E.g. worker.
3) Influencers- Individuals in the organisation influence the decision-making
process by providing information on the criteria for buying. E.g. research
and development specialist inside the organisation and consultants
outside the organisation.
4) Deciders- Organisational members with decision-making power who
decide about the purchase. E.g. engineers deciding specifications or vicepresident (finance) who decides in favour of the purchase.
5) Gatekeepers- People in the organisation who has the power to prevent
sellers or information from reaching the members of buying centres. E.g.
purchasing agents, receptionist.
6) Approvers- People in the organisation who authorise the proposed
actions of deciders or buyers.
7) Buyers- People who have formal authority to select the suppliers and
arrange the purchase terms. Buyers help in product specifications,
selection of suppliers, and negotiating purchases and include senior
people in the purchase department.
Role of functional departments in the purchase process.
Different departments within the organisation play various roles. We are briefly
presenting a few
Roles played by these departments.
Marketing- Purchasing decision has an effect on the marketability of a
firms product, such as altering the products, materials, packaging or
price. Marketing people become active influencers in purchase decision
Production and operations- These departments are responsible for
determining the feasibility and economic considerations of producing endproducts. Engineering decision on specification of parts and materials are
confirmed in this department.
Research and development- This department takes care of initial
development of products and processes and sets specifications for
components and material requirements for use in the end-product design.
Purchase department- Contrary to the belief that purchasing
department does not play a central role in professional decision; it is one
of the key centres for business customers.

Q.6 Describe some of the strategies for efective marketing and

advertising in rural market. Also explain the innovative use of media in
rural market.
Ans. Rural Marketing:

The rural areas are where the markets of the future lie. Urban markets are
becoming increasingly competitive and saturated for many products. On the
other hand, rural markets offer growth opportunities for firms caught up in
intensive battle in urban and metro markets. Marketing gurus describe rural
markets as the market of the new millennium. According to them, marketers
have to understand the rural customers before they can make inroads into rural
marketers. A sound understanding of rural consumer behaviour and customer
demand patterns will help the rural marketer to creatively serve the rural market
with ample success.
An efficient countrywide distribution network must be created so that
company's products are available to the farmers at their doorstep.
Advertising communication and servicing must be evolved in tune with
rural needs and in ways different from what is effective in larger towns and
There should be a strong research and development team to produce
products specifically for rural areas.
Pricing of products should be in line with the economic competence of
Packaging should be simpler and more functional than ornamental.
Role of trade in distribution and communication must be strengthened.
Innovative use of media:
In rural marketing, institutional promotion is more important than brand
advertising. To a marketer, this is another hurdle because he/she may promote
the institution and some other brand may be bought. Inability of the smaller
retailers to carry stocks without adequate credit facilities is an impediment for
growth of retail in rural areas. Rural markets have also inadequate warehousing,
which leads to delay in replenishments of stocks. Marketers must overcome all
these barriers to successfully market their product in the rural market.