Marketing Management (Philosophies) NEW DL-2015

Marketing Management
ASSIGNMENT A
Ques1. Define Marketing Management. Discuss the various management philosophies.

Explain how the marketing and selling are contrasted and briefly explain the societal
marketing concept.
ANS. Marketing management is a business discipline which focuses on the practical

application of marketing techniques and the management of a firm's marketing resources
and activities. Globalization has led firms to market beyond the borders of their home
countries, making international marketing highly significant and an integral part of a firm's
marketing strategy. Marketing managers are often responsible for influencing the level,
timing, and composition of customer demand accepted definition of the term. In part, this
is because the role of a marketing manager can vary significantly based on a business's
size, corporate culture, and industry context. For example, in a large consumer products
company, the marketing manager may act as the overall general manager of his or her
assigned product. To create an effective, cost-efficient marketing management strategy,
firms must possess a detailed, objective understanding of their own business and the
market in which they operate.[3] In analyzing these issues, the discipline of marketing
management often overlaps with the related discipline of strategic planning.
Marketing management employs various tools from economics and competitive strategy to
analyze the industry context in which the firm operates. These include Porter's five forces,
analysis of strategic groups of competitors, value chain analysis and others.[4] Depending
on the industry, the regulatory context may also be important to examine in detail.
In competitor analysis, marketers build detailed profiles of each competitor in the market,
focusing especially on their relative competitive strengths and weaknesses using SWOT
analysis. Marketing managers will examine each competitor's cost structure, sources of
profits, resources and competencies, competitive positioning and product differentiation,
degree of vertical integration, historical responses to industry developments, and other
factors.
Marketing management often finds it necessary to invest in research to collect the data
required to perform accurate marketing analysis. As such, they often conduct market
research (alternately marketing research) to obtain this information. Marketers employ a
variety of techniques to conduct market research, but some of the more common include:
 Qualitative marketing research, such as focus groups and various types of interviews
 Quantitative marketing research, such as statistical surveys
 Experimental techniques such as test markets
 Observational techniques such as ethnographic (on-site) observation
Marketing managers may also design and oversee various environmental scanning and
competitive intelligence processes to help identify trends and inform the company's
marketing analysis.
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5 Important Marketing Management Philosophies
Every company can have different ideas or philosophy. For example, a particular company
can have its idea or philosophy that if the production is done on a large scale, the cost
would be less and the product would be sold automatically.
In this way, such a company will concentrate mainly on the large scale production of
goods. Similarly, some other company can have a different idea. It may have an idea that
if the quality of the product is improved, there will be no difficulty in selling the product.
Under the marketing management philosophy, we shall study the following five concepts:
(1) Production Concept
(2) Product Concept
(3) Selling Concept
(4) Marketing Concept
(5) Societal Marketing Concept
1. Production Concept
Those companies who believe in this philosophy think that if the goods/services are cheap
and they can be made available at many places, there cannot be any problem regarding
sale.
Keeping in mind the same philosophy these companies put in all their marketing efforts in
reducing the cost of production and strengthening their distribution system. In order to
reduce the cost of production and to bring it down to the minimum level, these companies
indulge in large scale production.
This helps them in effecting the economics of the large scale production. Consequently,
the cost of production per unit is reduced.
The utility of this philosophy is apparent only when demand exceeds supply. Its greatest
drawback is that it is not always necessary that the customer every time purchases the
cheap and easily available goods or services.
2. Product Concept
Those companies who believe in this philosophy are of the opinion that if the quality of
goods or services is of good standard, the customers can be easily attracted. The basis of
this thinking is that the customers get attracted towards the products of good quality. On
the basis of this philosophy or idea these companies direct their marketing efforts to
increasing the quality of their product.
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It is a firm belief of the followers of the product concept that the customers get attracted to
the products of good quality. This is not the absolute truth because it is not the only basis
of buying goods.
The customers do take care of the price of the products, its availability, etc. A good quality
product and high price can upset the budget of a customer. Therefore, it can be said that
only the quality of the product is not the only way to the success of marketing.
3. Selling Concept
Those companies who believe in this concept think that leaving alone the customers will
not help. Instead there is a need to attract the customers towards them. They think that
goods are not bought but they have to be sold.
The basis of this thinking is that the customers can be attracted. Keeping in view this
concept these companies concentrate their marketing efforts towards educating and
attracting the customers. In such a case their main thinking is ‘selling what you have’.
This concept offers the idea that by repeated efforts one can sell-anything to the
customers. This may be right for some time, but you cannot do it for a long-time. If you
succeed in enticing the customer once, he cannot be won over every time.
On the contrary, he will work for damaging your reputation. Therefore, it can be asserted
that this philosophy offers only a short-term advantage and is not for long-term gains.
4. Marketing Concept
Those companies who believe in this concept are of the opinion that success can be
achieved only through consumer satisfaction. The basis of this thinking is that only those
goods/service should be made available which the consumers want or desire and not the
things which you can do.
In other words, they do not sell what they can make but they make what they can sell.
Keeping in mind this idea, these companies direct their marketing efforts to achieve
consumer satisfaction.
In short, it can be said that it is a modern concept and by adopting it profit can be earned
on a long-term basis. The drawback of this concept is that no attention is paid to social
welfare.
5. Societal Marketing Concept
This concept stresses not only the customer satisfaction but also gives importance to
Consumer Welfare/Societal Welfare. This concept is almost a step further than the
marketing concept. Under this concept, it is believed that mere satisfaction of the
consumers would not help and the welfare of the whole society has to be kept in mind.
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For example, if a company produces a vehicle which consumes less petrol but spreads
pollution, it will result in only consumer satisfaction and not the social welfare.
Primarily two elements are included under social welfare-high-level of human life and
pollution free atmosphere. Therefore, the companies believing in this concept direct all
their marketing efforts towards the achievement of consumer satisfaction and social
welfare.
In short, it can be said that this is the latest concept of marketing. The companies adopting
this concept can achieve long-term profit.
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Ques2. Explain the various factors influencing a company’s marketing strategy with the
help of suitable examples.
Ans. A marketing strategy is a plan developed by an organization that describes how a

company's products and/or services will be offered to customers. Products are tangible
items produced by labor to satisfy a need. A service is a valuable action or deed performed
to fulfill a demand or need. A strategic company policy is the response of an organization
to the demands that are set by its social environment. But which of these demands are
relevant? In general, three types of ‘environmental factors’ can be discerned.
The marketing strategy is shaped by the ultimate goals of the company and is the
foundation of the marketing plan. All businesses are exposed to the outside world, which
means decision-making by the company is influenced frequently. Any force outside of
company employees, leadership, and business strategy that can affect an organization's
performance can be considered an external influence. From fast-food restaurants to car
dealerships, there are decisions that must be made by business owners, and the decisions
are usually influences by an external force.
There are six main external factors that influence the marketing strategy of a business or
organization. Some organizations may perform a SLEPT (social, legal, economical,
political, and technological) analysis to obtain information on major external influences on
their business. Another external factor that can influence a business is competition.
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Social Influences
We are all walking, talking forms of demography. Demographics are characteristics about
a population of people or things. It can be your hair colour, the foods you eat, the car you
drive, or the age group into which you are classified. In marketing, governmental research,
or surveys and sampling demographic questions usually refer to information collected
about one's age, gender, education, income, or body phenotype (appearance).
Legal Influences
Federal and state regulations on a specific industry can also influence how a company
performs. For instance, in the alcoholic beverage industry, would it be sensible to have
children under the age of 18 in advertisements selling alcoholic beverages if it is against
the law for minors to consume alcohol?
Economical Influences
The state of the economy and our environment has a major influence on consumer buying
power. If the economy is experiencing a recession, consumers may not be able to buy what
they normally buy due to lack of employment. If a person is laid off and is in danger of
depleting their savings, they may rethink buying the large cup of coffee they purchase at
Starbucks on the way to work every day. Instead, they may start making their coffee at
home. This change will eventually affect Starbucks' bottom line.
Political Influences
Political influences can affect how consumers purchase their products. If a company seems
to support one specific political party over another, the company may alienate potential
customers. For instance, if a company publically supports a Republican or Democratic
official, they may unknowingly persuade their customers into or out of buying their
products.
Technological Factors
The discoveries made by science and technology, in general, will eventually find their way
into the business world. This leads to a certain approach of possible problems: the
production technology of the company. In this context, not only the hardware is
considered ‘technology’, but also the routines, heuristics and procedures that are used. The
nature of this technology, in turn, has an influence on the measure in which production
processes are capital- or labour intensive. This determines whether the work can be
described as ‘routine’ or ‘professional’. Furthermore, the nature of the technology that is
used also has an effect on staff management, for example by putting constraints on the
wages of the employees.
The influence of technology, however, does not have to be direct, as different options are
sure to arise and technologies can be implemented in a variety of ways.
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Ques 3.What is marketing research? Discuss the marketing research process with the help
of an example. Briefly explain the different sources of data.
Ans. Marketing research is "the process or set of processes that links the consumers,
customers, and end users to the marketer through information — information used to
identify and define marketing opportunities and problems; generate, refine, and evaluate
marketing actions; monitor marketing performance; and improve understanding of
marketing as a process. Marketing research specifies the information required to address
these issues, designs the method for collecting information, manages and implements the
data collection process, analyzes the results, and communicates the findings and their
implications."
It is the systematic gathering, recording, and analysis of qualitative and quantitative data
about issues relating to marketing products and services. The goal of marketing research is
to identify and assess how changing elements of the marketing mix impacts customer
behaviour. The term is commonly interchanged with market research; however, expert
practitioners may wish to draw a distinction, in that market research is concerned
specifically with markets, while marketing research is concerned specifically about
marketing processes.
Marketing research is often partitioned into two sets of categorical pairs, either by target
market:
 Consumer marketing research, and

 Business-to-business (B2B) marketing research
Or, alternatively, by methodological approach:
 Qualitative marketing research, and

 Quantitative marketing research
Consumer marketing research is a form of applied sociology that concentrates on

understanding the preferences, attitudes, and behaviours of consumers in a market-based
economy, and it aims to understand the effects and comparative success of marketing
campaigns. The field of consumer marketing research as a statistical science was
pioneered by Arthur Nielsen with the founding of the ACNielsen Company in 1923.
Thus, marketing research may also be described as the systematic and objective
identification, collection, analysis, and dissemination of information for the purpose of
assisting management in decision making related to the identification and solution of
problems and opportunities in marketing.
The task of marketing research (MR) is to provide management with relevant, accurate,
reliable, valid, and current information. Competitive marketing environment and the ever-
increasing costs attributed to poor decision making require that marketing research provide
sound information. Sound decisions are not based on gut feeling, intuition, or even pure
judgment.
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Marketing managers make numerous strategic and tactical decisions in the process of
identifying and satisfying customer needs. They make decisions about potential
opportunities, target market selection, market segmentation, planning and implementing
marketing programs, marketing performance, and control. These decisions are
complicated by interactions between the controllable marketing variables of product,
pricing, promotion, and distribution. Further complications are added by uncontrollable
environmental factors such as general economic conditions, technology, public policies
and laws, political environment, competition, and social and cultural changes. Another
factor in this mix is the complexity of consumers. Marketing research helps the marketing
manager link the marketing variables with the environment and the consumers. It helps
remove some of the uncertainty by providing relevant information about the marketing
variables, environment, and consumers. In the absence of relevant information, consumers'
response to marketing programs cannot be predicted reliably or accurately. Ongoing
marketing research programs provide information on controllable and non-controllable
factors and consumers; this information enhances the effectiveness of decisions made by
marketing managers.
Marketing research process
The market research process involves a round of separate stages of data interpretation,
organization and collection. These stages could be considered as a benchmark of market
research, but it depends on an organization how they have encapsulated their strategies to
follow this process. Hence some of the interlinked stages could be conducted repeatedly
and some of the stages can also be omitted. Given below is a typical market research
process which is depicted stage-wise:
Defining the Problem or Need- The starting phase is always identifying the reason or
problem for which research is to be conducted. This includes collecting of relevant initial
information and how this information will affect decision making process. It also includes
defining problems after discussing with decision makers of the organization. Once the
problem is defined precisely and the need of research is discussed, the further process
could be conducted in an efficient manner.
Determining who will do the research- Once the initial stage of defining the problem and
the need of research is done, it is important to determine who will do the research and
what will be the approaches to resolve these problems. This involves creating a problem
solving framework and analytical models after discussing with organization experts. In
this sample case studies are created according to the defined framework by enforcing the
relevant information and secondary data.
Picking out the appropriate methodology- A specific methodology is entailed by the

research professional after identifying the specific needs and exploring the case studies. It
may include a combination of specific approaches like telephone survey, web or email
survey, one-to-one interviews, secondary research etc. This methodology acts as a
blueprint of research process and following basic steps:
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 Data Collection Process- Methods for collecting and preparing quantitative

information
 Determining the need of this information
 Scaling and measuring procedures
 Designing sample Questionnaire
 Formulating case studies and sampling process
Planning information analysis This process includes field work and desk work for
collecting all relevant data and information. Field work includes interviewing the
personals by interacting them face to face by visiting them in home or offices or arranging
group meetings at any preferred place. Desk work includes contacting personals over
telephone or via series of emails and web meetings. This could take comparatively more
time as compared to the field work. Involving experienced and trained executive for this
helps in reducing data collection errors.
Data Preparation, tabulation and analysis of results- After the data collecting stage the
collected data is edited, corrected if required and validated. This process is the most
important process in the research as the results are generated on the basis of data
preparation. So it is required for an organization to verify the authenticity of the collected
data and edit or correct it if needed. The final data is then segmented according to the
business standards and inserted into the CRM database in a more tabulated form so that
search or combination could be made easily.
- The entire process is properly documented with respect to organizational standards so

that it can be referred in future for decision making process or to change or modify any
specific process or module. This document contains overall architecture of the project
depicting all the processes with the help of tables, graphs and figures to provoke impact
and clarity.
Market Research undeniably plays a vital role in exploring the business. The above
process if conducted in an efficient manner could help predicting and correlating customer
needs and then modelling or modifying the business strategies accordingly.
Marketing research example
For example, the restaurant company may actually roll its chicken meal out into five of its
10 local restaurants, advertising the meal on local television and radio and through coupon
magazine ads. Corporate marketing managers may then track sales and profits to validate
the success of the new meal. The restaurant would then know if its marketing research was
an accurate indicator of success.
Sources of marketing data
(A) Internal Sources:
These refer to the sources of information within the organisation. In certain cases internal
sources are indispensable without which the researcher cannot obtain desired results.
Internal sources include accounting information (Trading Profit & Loss A/c and Balance
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Sheets of different years), salesmen’s reports, statistics in relation to advertisement

expenditure, transportation costs etc. Information from internal sources is easily available
and no financial burden is involved in gathering the information.
(B) External Sources:
In order to study marketing problems in detail the need of external sources of marketing
research arises. External sources are of immense importance and utility in case where
research needs detailed and thorough investigation. External sources data can be divided
with two categories (a) Primary data (b) Secondary data.
Primary Data:
This refers to the information collected by the researcher from original sources. It is not a
published data; it has to be gathered by the researcher himself by tapping various
resources. Primary data is usually collected for specific purposes.
The main sources from where primary data can be obtained are (a) Salesmen (b) Dealers;
(c) Consumers etc. It is a very slow process of collecting data and involves huge costs. But
results obtained from this data are original and tend to be more accurate and reliable.
These sources are explained below:
(a) Salesmen:
Salesmen are the most important source of providing first hand information. They are
appointed by the owners for the sale and promotion of its products. They have a direct link
with the consumers understand tastes, preferences and buying habits of the consumers.
They can also know about the dealer’s reaction (especially of retailers) towards the firm’s
products by taking into consideration price, design, packaging and size etc. of the product.
The marketing manager may direct the salesmen to prepare periodical reports containing
the information collected by them.
The information collected in this manner is original and more meaningful. This will
further enhance the morale of salesmen as they feel that they are contributing towards the
formulation of marketing policies of the organisation.
But sometimes information provided by salesmen is not accurate and upto the mark. The
salesmen are not properly trained and do not know the methodology to collect the
information properly.
(b) Dealers:
This is another source of collecting primary data. Valuable information can be collected
with regard to demand of the product from retailers. Information about the marketing
policies of competitors can also be gathered from the dealers.
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It has been observed that sometimes this method does not prove to be fruitful as dealers do
not keep proper records and they do not want to waste their time in supplying information.
(c) Consumers:
This source of collecting primary data is of great importance. Representative samples of

consumers may be selected for conducting thorough investigation with regard to price,
quality and use of the product. This method of collection data is very reliable as it
establishes direct link between producer and the consumer.
Secondary Data:
Secondary data is already existing which has been collected and published by some
individuals or institutions. This data is available at a very low cost and it requires lesser
time to collect it.
The main sources of secondary data are:
(a) Periodicals and Newspapers:
Business magazines and journals published periodically contain data which is very useful
for marketing research; Newspapers such as Economic Times and Financial Express also
contain data regarding business trends and market reports. Important trade journals are
Industrial Times, Commerce, Capital, Market, Indian Finance, Business India, Business
World and others.
(b) Govt. Publications and Reports:
There are innumerable publications brought by Central and State Govts, which contain
valuable data for conducting marketing research. Census reports of the Government of
India, Publications of Planning Commission; periodical publication such as Indian
Review, various markets bulletins.
Reserve Bank of India bulletin, publication of the Statistical Departments of various State
Govts, supply valuable information extensively used in marketing research.
(c) Trade Associations:
Various trade associations like Chambers of Commerce, Export Promotion Council etc,
publish useful data which is of immense help to the res warmer.
(d) Published Surveys Of Markets:
This is another useful source of supplying secondary data. Market surveys and reports are
important instruments in the hands of researcher for conducting marketing research. These
are published by business houses or independent research organisations. These pertain to
specific lines of products.
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(e) Foreign Govts, And International Agencies:
Publications of foreign Govts, with regard to trade and other important aspects of
economy of respective countries and information published by UNO, ILO, IBRD
(International Bank for Reconstruction and Development) serve useful purpose in making
comparison of Indian conditions prevailing in other countries of the world.
(f) Other Sources:
Besides the above mentioned sources of marketing research, there are many other sources
of supplying secondary data e.g., colleges and universities stock exchanges and
commodity exchanges, specialised libraries’, internal sources such as sales and purchase
records, salesman, reports, sales orders, customer complaints and records of other
companies.
The secondary data collected from above mentioned sources suffer from certain
limitations. The basis undertaken by different agencies for collecting data may not be
comparable. In other words, uniform basis may not be adopted for data collection. The
data may be based on incomplete records under secondary source; data is collected for
purposes other than marketing research.
Ques4. What do you mean by productivity analysis? Differentiate between productivity

analysis and profitability analysis. What are the different steps in the direct and indirect
approaches to marketing budgeting?
Ans: Productivity analysis is a new approach to evaluate technologies in production

processes at the micro level; we use the stochastic frontier approach to the analysis and
macro-economic development of countries use Malmquist indices. Generally, policy
makers use a piecemeal approach and confuse productivity with yields.
A small business needs to be highly productive in order to survive. In fact, whether a

small business is highly productive or moderately productive can mean the difference
between its success and its failure!
To improve productivity, you must know exactly where you stand as well as exactly
where you want to head. We help you to determine that through an efficiency and
productivity analysis study which will highlight where your resources are being drained.
The analysis will cover all aspects of your business, so that you can be sure that nothing
is left to chance.
We then recommend improvements or strategies to address those areas of reduced

productivity.
Once you know where you stand, we can assist you with implementing solutions to those
areas of reduced productivity.
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Contact us to start your journey to being more productive. Enjoy the extra time and
peace of mind you gain in the process, in addition to higher profits!
Ques5. What do you mean by media scheduling? Explain the procedure for evaluating
advertising programmes with the help of suitable examples.
Ans. MEDIA SCHEDULING
The media planner should then prepare a media schedule. Media scheduling refers to the
programming of media insertions. Media scheduling depends upon a number of factors
such as:
1. Nature of product- consumer usable, durables or industrial
2. Nature of sales-whether seasonal or regular sales.
3. Product lifecycle- whether introduction, growth, maturity or decline.
4. Pattern of competitor’s programmes.
5. Entry of new competitors.
6. Availability of funds for advertising.
This involves the scheduling and timing of advertisement. The schedule shows the number
of advertisements that are to appear in each medium, the size of the advertisements, and
the date on which they are to appear. There are many ways of scheduling any advertising
programme. No single way can be said to be best for all advertisers. Each advertiser must
prepare a specific schedule most suitable for its market and its advertising objectives.
What may be good for one advertiser and his product may be bad for another. Even for the
same advertiser, the best at one stage of the product life cycle may not be suitable at
another stage. An advertiser, for example, may schedule to buy six pages space in a
monthly consumer magazine. Alternatively, he may buy one-page space every month for
the first three months; then he may not buy space for the next three months; and then again
take one-page space every month for the next three months. There may be a variety of
schedules of advertisements.
The last method of scheduling is known as the wave method, or the flighting method. In
flighting, advertisements are bunched with the intention of providing a concentrated
impact. The other method is the blitz schedule. The insertion of double-page
advertisements in three consecutive issues of a magazine is an example of the blitz
schedule. There are many more methods of bunching advertisements. However, the
purpose of bunching is to provide concentrated impact with a single issue of the
publication.
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Procedure for evaluating advertising program
Procedure an advertising program evaluation can be broken up into four parts: focusing
the evaluation, collecting the information, using the information, and managing the
evaluation. Program evaluation involves reflecting on questions about evaluation purpose,
what questions are necessary to ask, and what will be done with information gathered.
Critical questions for consideration include:
What am I going to evaluate?

What is the purpose of this evaluation?
Who will use this evaluation? How will they use it?
What questions is this evaluation seeking to answer?
What information do I need to answer the questions?
When is the evaluation needed? What resources do I need?
How will I collect the data I need?
How will data be analyzed?
What is my implementation timeline?
Ques 6. Define sales promotion and discuss the different elements of promotion-mix with
the help of suitable examples.
Answer: Sales promotion is one of the five aspects of the promotional mix. (The other 4
parts of the promotional mix are advertising, personal selling, direct marketing and
publicity/public relations.) Media and non-media marketing communication are employed
for a pre-determined, limited time to increase consumer demand, stimulate market demand
or improve product availability. Examples include contests, coupons, freebies, loss
leaders, point of purchase displays, premiums, prizes, product samples, and rebates
Sales promotions can be directed at the customer, sales staff, or distribution channel
members (such as retailers). Sales promotions targeted at the consumer are called
consumer sales promotions. Sales promotions targeted at retailers and wholesale are called
trade sales promotions. Some sale promotions, particularly ones with unusual methods, are
considered gimmicks by many.
Sales promotion includes several communications activities that attempt to provide added
value or incentives to consumers, wholesalers, retailers, or other organizational customers
to stimulate immediate sales. These efforts can attempt to stimulate product interest, trial,
or purchase. Examples of devices used in sales promotion include coupons, samples,
premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes.
Sales promotion is needed to attract new customers, to hold present customers, to

counteract competition, and to take advantage of opportunities that are revealed by market
research. It is made up of activities, both outside and inside activities, to enhance company
sales. Outside sales promotion activities include advertising, publicity, public relations
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activities, and special sales events. Inside sales promotion activities includes window
displays, product and promotional material display and promotional programs such as
premium awards and contests.
Promotion mix:
It refers to all the decisions related to promotion of sales of products and services. The
important decisions of promotion mix are selecting advertising media, selecting
promotional techniques, using publicity measures and public relations etc.
There are various tools and elements available for promotion. These are adopted by firms
to carry on its promotional activities. The marketer generally chooses a combination of
these promotional tools.
Following are the tools or elements of promotion. They are also called elements of
promotion mix:
1. Advertising
2. Sales promotion
3. Personal selling
4. Public relation
1. Advertising:
Advertisement can be defined as the “paid form of non-personal presentation and

promotion of idea, goods or services by an identified sponsor”.
It is an impersonal presentation where a standard or common message regarding the

merits, price and availability of product or service is given by the producer or marketer.
The advertisement builds pull effect as advertising tries to pull the product by directly
appealing to customer to buy it.
From the above definition we can find that the three distinct features of advertising are:
1. Paid Form:
The sponsor has to pay for advertising he has to bear a cost to communicate with
customers.
2. Impersonality:
There is no face to face contact between customers and advertiser. It creates a monologue
and not a dialogue.
3. Identified Sponsor:
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Advertisement is given by an identified company or firm or individual.
2. Sales Promotion:
Sales promotion refers to short term use of incentives or other promotional activities that
stimulate the customer to buy the product. Sales promotion techniques are very useful
because they bring:
(a) Short and immediate effect on sale.
(b) Stock clearance is possible with sales promotion.
(c) Sales promotion techniques induce customers as well as distribution channels.
(d) Sales promotion techniques help to win over the competitor.
Sales Promotion Techniques for Customers:
Some of the sales promotion activities commonly used by the marketer to increase the sale
are:
(i) Rebate:
It refers to selling product at a special price which is less than the original price for a
limited period of time. This offer is given to clear off the stock or excessive inventory for
example; coke announced 2 litre bottles at Rs 35 only.
(ii) Discounts:
This refers to reduction of certain percentage of price from list price for a limited period of
time. The discounts induce the customers to buy and to buy more. Generally at the end of
season big companies offer their products at discounted price to clear off the stock e.g.,
season’s sale at Snow-White Jain Sons, Paul Garments, Bhuvan Garments, etc.
(iii) Refunds:
This refers to refund or part of price paid by customer on presenting the proof of purchase
for example, Rs 2 off on presentation of empty pack of Ruffle Lays.
(iv) Premiums or Gifts/or Product Combination:
These are most popular and commonly used promotion tool. It refers to giving a free gift
on purchase of the product. Generally the free gift is related to product but it is not
necessary for example, Mug free with Bourn vita, Shaker free with Coffee, Toothbrush
free with Toothpaste, etc.
(v) Quantity Deals:
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It refers to offer of extra quantity in a special package at less price or on extra purchase
some quantity free for example, buy three get one free e.g., this scheme of buy three get
one free scheme is available on soaps.
(vi) Samples:
It refers to distribution of free samples of product to the customers. These are distributed
when the seller wants the customer must try the product. Generally when a new product is
launched for example, when Hindustan Level launched Surf Excel it distributed the
samples as it wanted the customers to try it.
(vii) Contests:
It refers to participation of consumers in competitive events organised by the firm and

winners are given some reward for example, Camlin Company organizes painting
competition, Bourn vita quiz contest and some companies organise contest of writing
slogans and best slogan is awarded prize.
(viii) Instant Draws and Assigned Gifts:
It includes the offers like ‘scratch a card’ and win instantly a refrigerator, car, T-shirt,
computer etc.
(ix) Lucky Draw:
In this draws are taken out by including the bill number or names of customers who have
purchased the goods and lucky winner gets free car, computer, A.C., T.V., etc. Draw can
be taken out daily, weekly, monthly, etc.
(x) Usable Benefits:
This includes offers like ‘Purchase goods worth Rs 5000 and get a holiday package’ or get
a discount voucher, etc.
(xi) Full Finance @ 0%:
Many marketers offer 0% interest on financing of consumer durable goods like washing
machine, T.V. etc. e.g., 24 easy instalments 6 paid as front payment and remaining 18 with
post-dated cheques. In these types of scheme customers should be careful about the file
charges etc.
(xii) Packaged Premium:
In this type of sales promotion the free gift is kept inside the pack. The gift is kept in
limited products but the excitement of getting the gift induces the customer to buy the
product for example, gold pendant in soap, gold coin in Tata tea etc.
(xiii) Container Premium:
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This refers to use of special container or boxes to pack the products which could be reused
by the customer for example, Pet Bottles for Cold Drinks. This bottles can be used for
Steering Water, Plastic Jars for Bourn vita, Maltova, etc. which can be reused by the
housewives in kitchen.
3. Personal Selling:
Personal selling means selling personally. This involves face to face interaction between
seller and buyer for the purpose of sale.
The personal selling does not mean getting the prospects to desire what seller wants but
the concept of personal selling is also based on customer satisfaction.
Features of Personal Selling:
(i) Personal Interaction:
In personal selling the buyers and sellers have face to face interaction. This closeness
allows both the parties to observe each other’s action closely.
(ii) Two Way Communication:
In personal selling the sellers give information about the product, at the same time the
buyer get a chance to clarify his doubts. It is suitable for sale of complex products where
buyer wants to interact with the manufacturer.
(iii) Better Response:
When seller is personally explaining the utilities of product to the customers then customer
do pay some attention and listen to the information.
(iv) Relationship:
When the seller and buyer come together this may improve relation between the customer
and seller. Salespersons normally make friendly relations with the customers.
(v) Better Convincing:
Personal selling is most effective form of promotion because with this the sales person can
convince the buyer by demonstrating the use of product and making changes in the
product according to the need of customer.
 4. Public Relations:
Apart from four major elements of marketing mix, another important tool of marketing is
maintaining Public Relations. In simple words, a public relations means maintaining
public relations with public. By maintaining public relations, companies create goodwill.
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Public relations evaluate public attitudes; identify the policies and procedures of an
organisation with the public interest to earn public understanding and acceptance.
Public does not mean only customers, but it includes shareholders, suppliers,
intermediaries, customers etc. The firm’s success and achievement depends upon the
support of these parties for example, firm needs active support of middle men to survive in
market, it must have good relations with existing shareholders who provide capital. The
consumers’ group is the most important part of public as success of business depends upon
the support and demand of customers only.
Role, Significance, advantages of public relations:
Public relations are significant in the following ways:
1. Help to convey the policies and programmes of the organisation.
2. Help to collect information about public opinion about the organisation, management
activities etc.
3. To overcome the complaints and dislikes of public.
4. To mould people’s attitude in favour of organisation.
5. To maintain goodwill and understanding between organisation and public.
6. To build an image of the organisation.
Ways/Methods and Tools of Public Relations:
The companies can use the following tools to improve their relations with public:
1. News:
Sometimes companies get involved in such kind of activities or make such policies so that
they get some positive coverage in news. For example, a company’s name may be covered
in news for reservation of jobs for women or for introducing new technology etc.
2. Speeches:
The speeches given by the leaders of corporate sectors influence various members of
public specially banks, shareholders etc. Public relations department creates occasion
when the speeches are delivered by the leader of company.
3. Events:
Events refer to organizing press conferences, multimedia presentation, matches, stage

shows etc.
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4. Written Materials:
Sometimes written materials such as Balance Sheet, Annual Reports, Special documents,
Brochures etc. are circulated to various parties to improve and maintain public image of
the company.
Ques7. Discuss the marketing plan for a consumer product of your choice and briefly
explain the marketing planning process.
Ans: A marketing plan provides details on how a company plans to achieve its marketing
objectives. Marketing plans are used to promote an entire brand or product line and
individual products or services. A good marketing plan is vital to the economic success of
new products.
Launch strategy of the product
 Competitive analysis
 Detailed study is done to understand the market dynamics. A gap analysis is done to
assess the opportunities existing in the market.
 Product portfolio management
 We identify the products to be launched in terms of trade and consumer acceptability.
 Packing and pricing
 Packaging for a new product decides the degree of consumer interest. A bad pricing
policy can make a new product a non-starter.
 Designing a communication strategy
 The communication strategy for a new product has to be helpful to create basic
awareness
 Brand Positioning
 This says who you are and how you are different from competition.
 Designing a sales strategy
 Target cities and markets need to be identified to launch the product effectively.
 Implementation of the launch strategy
 To launch the product during the initial phase, which is as per the plan. We believe
that implementation is the last 98 % of the puzzle.
OBJECTIVES
 BRIGHT LIGHT decided on the following objectives:

 Achieve sales of about all the people in the village
 Achieve the goodwill for the product among the customers and customer satisfaction
 Achieve maximum profit within five years.
 Marketing strategy
 Product: Washing soap, packed in colored and with high quality .the product packs of
50g, 100g,150g are planning to launch with orange peel extracts
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 Target market: Mainly focuses on ladies (20-50) in the rural market. it mainly focuses
from low level income families in the area.
 Pricing : available at 10 RS for 50 g , 15 RS for 100g , 20 RS for 150g
 Distribution: Through Direct marketing Using salesmen, Small stores, Wholesalers
etc.
ACTION PROGRAMS
 BRIGHT LIGHT will use a set of action programs to achieve its objectives.
 Before launching the washing soap, it will begin efforts at educating the village
people and also giving training to the employees who all are from the rural areas.
FINANCIAL PROJECTIONS
 The first year sales revenue projected to be 6 lakhs.

 Half of the profit is for the sales promoters and it is the expense forecast.
The business is expected to break even in the second year of operation
IMPLEMENTATION CONTROL
 This plan will have a detailed Budget

 Activity schedule with strict deadlines.
 The plan will be monitored on a weekly basis.
Marketing planning process
"Marketing Planning is the process of developing marketing plan incorporating overall

marketing objectives, strategies, and programs of actions designed to achieve these
objectives."
Marketing Planning involves setting objectives and targets, and communicating these
targets to people responsible to achieve them. It also involves careful examination of all
strategic issues, including the business environment, the market itself, the corporate
mission statement, competitors, and organisational capabilities.
Marketing Planning Process
Marketing planning process is a series of stages that are usually followed in a sequence.
Organisations can adapt their marketing plan to suit the circumstances and their
requirements. Marketing planning process involves both the development of objectives
and specifications for how to achieve the objectives. Following are the steps involved in a
marketing plan.
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1) Mission:
Mission is the reason for which an organisation exists. Mission statement is a

straightforward statement that shows why an organisation is in business, provides basic
guidelines for further planning, and establishes broad parameters for the future. Many of
the useful mission statements motivates staff and customers.
2) Corporate Objectives
Objectives are the set of goals to be achieved within a specified period of time. Corporate
objectives are most important goals the organisation as a whole wishes to achieve within a
Specified period of time. All the departments of an organisation including marketing
department works in harmony to achieve the corporate objectives of the organisation.
Marketing department must appreciate the corporate objectives and ensure its actions and
decisions support the overall objectives of the organisation.
Mission statement and corporate objectives are determined by the top level management
(including Board of Directors) of the organisation. The rest of the steps of marketing
planning process are performed by marketing department. All the actions and decisions of
the marketing department must be directed to achieve organisation mission and its
corporate objectives.
3) Marketing Audit
Marketing audit helps in analysing and evaluating the marketing strategies, activities,
problems, goals, and results. Marketing audit is done to check all the aspects of business
directly related to marketing department. It is done not only at the beginning of the
marketing planning process but, also at a series of points during the implementation of
plan. The marketing audit clarifies opportunities and threats, so that required alterations
can be done to the plan if necessary.
4) SWOT Analysis
The information gathered through the marketing audit process is used in development of
SWOT Analysis. It is a look at organisation's marketing efforts, and its strengths,
weaknesses, opportunities, and threats related to marketing functions.
 Strengths and Weaknesses are factors inside the organisation that can be controlled by
the organisation. USP of a product can be the example of strength, whereas lack of
innovation can be the example of weakness.
 Opportunities and Threats are factors outside the organisation which are beyond the
direct control of an organisation. Festive season can be an example of opportunity to
make maximum sales, whereas increasing FDI in a nation can be the example of
threat to domestic players of that nation.
5) Marketing Assumptions
A good marketing plan is based on deep customer understanding and knowledge, but it is
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not possible to know everything about the customer, so lot of different things are assumed
about customer.
For example:-
 Target Buyer Assumptions - assumptions about who the target buyers are.
 Messaging/Offering Assumptions - assumptions about what customers think are the
most important features of product to be offered.
6) Marketing objectives and strategies:
After identification of opportunities and challenges, the next step is to develop marketing
objectives that indicate the end state to achieve. Marketing objective reflects what an
organisation can accomplish through marketing in the coming years.
Objective identifies the end point to achieve. Marketing strategies are formed to achieve
the marketing objectives. Marketing strategies are formed to determine how to achieve
those end points. Strategies are broad statements of activities to be performed to achieve
those end points.
7) Forecast the Expected Results
Marketing managers have to forecast the expected results. They have to project the future
numbers, characteristics, and trends in the target market. Without proper forecasting, the
marketing plan could have unrealistic goals or fall short on what is promised to deliver.
 Forecasting Customer Response - Marketing managers have to forecast the response

that the average customers will have to marketing efforts. Without some idea how the
marketing will be received, managers can't accurately plan the promotions.
 Forecasting Marketing cost - To make the marketing plan stronger, accurate forecast
of marketing cost is required to be done.
 Forecasting the Market - To accurately forecast the market, marketing managers have
to gain an intimate understanding of customers, their buying behaviour, and
tendencies.
 Forecasting the Competition - Forecast of competition like - what they market, how
they market, what incentives they use in their marketing can help to counter what they
are doing.
8) Create Alternative Plan
A alternate marketing plan is created and kept ready to be implement at the place of
primary marketing plan if the whole or some part of the primary marketing plan is
dropped.
9) Marketing Budget
The marketing budget is the process of documenting the expected costs of the proposed
marketing plan. One common method to allocate marketing budgeting is based on a
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percentage of revenue. Other methods are - comparative, all you can afford, and task
method.
10) Implementation and Evaluation
At this stage the marketing team is ready to actually start putting their plans into action.
This may involve spending money on advertising, launching new products, interacting
with potential new customers, opening new retail outlets etc.
The marketing planning process is required to be evaluated and updated regular. Regular
evaluation of marketing efforts helps in achieving marketing goals.
Ques8 write a short note on the following
1) Relative market potential:
 Percentage distribution of market potential among different portions of a market

(eg Geographic areas or customer groups)
(Market potential is a Top mgt/ corporate factor and relative market potential is a middle
mgt or SBU factor) is known as relative market potential
Measuring Market Potential
◦ Use secondary data to find

◦ Two components
 Possible number of users
 Maximum rate of purchase
◦ Measure at least one component to get a start, then use assumptions to develop data.
◦ Helps allocate:
◦ Advertising expenditure
◦ Sales people among territories
◦ Locate facilities to serve highest potential markets
◦ Can be estimated using:
◦ Corollary factors
Factors that are measurable and are likely to be correlated to market potential
 Single-corollary factor approaches
◦ A single, easily measured factor that is directly related to market potential.
◦ eg: For industrial goods
 Value of shipments
 Number of workers
2) Competitive parity analysis:
A term used to describe a method of allocating a budget for promotional activities that
depends on what competitors are spending for similar activities. Competitive parity
spending is a defensive strategy that can help a business protect its brand or product's
competitive position in the marketplace without overspending. Also called defensive
budgeting.
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It is one of the techniques to establish the total marketing communication budget. The
method takes the total budget to be allocated for marketing communication at par with
what competitors spend on the same.
Such a method is not considered very accurate because:
- The competitor might not be knowing the right thing
- The communication budget for a company might also differ from its competitor
due to factors like company reputation, resource, opportunities and objectives
Example:
If HUL is using ‘x’ amount for promotions of its luxury soap brand, P&G will also
allocate an amount almost equal to ‘x’ for a similar brand.
3) Basic elements of marketing strategies:
Elements
There are many elements of marketing and, if a marketing-led view of the firm is taken,
they touch all aspects of the company.
Although these elements are discussed separately below, they are all interlinked and can
have bi-directional influence on one another.
Segments
The first big decision is who should be our customers and who should not. In other words,
what customer segments will be addressed.
This is based first on the overall strategic intent of the firm, for example to be a high-end
exclusive and low-volume provider, or to compete in mass markets where price is critical.
The decision is also based on research that indicates the profitability of different customers
groups and how well the company is able to compete in each segment.
Brand
The brand is the overall intended message of the company, its products and services. It
describes what customers and others should think and feel whenever they encounter the
company or its products and services.
Brand is influenced by and influences the strategic intent of the firm and helps focus all
other communications, products and interactions.
Brand is fragile in that it is what customers think and feel rather than what the company
communicates. This makes shaping decisions about brand critical.
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Competition
An important marketing decision is the nature of competition, for example whether to

compete on quality, price, service, etc.
Decisions here will be affected by brand and will shape further activity such as the
approach towards promotion, the use of advertising, the response to competitive action,
and so on.
Products
Having understood and selected customers, marketing strategy should have a significant
influence on the products created.
This not only includes the overall functionality but also the focus on quality, features,
price points and so on, in order to produce products that align with the brand and complete
effectively in the marketplace.
Price
While the exact price may not decided in strategic planning, the price ranges should be
understood particularly in terms of what the target customers are willing and able to pay,
and also what price breaks are important to be able to compete in the markets being
addressed.
Promotion
Promotional strategy includes decisions about what approaches to promotion will be used,
for example TV advertising, direct marketing and so on.
Promotion can be extremely expensive, so a key part of the strategic decision here is in the
amount of budget that is being allocated.
Communication
Related to brand and promotion, the way that communications with customers and other
stakeholders (such as the media) needs to be decided.
This includes broadcast information about products, one-to-one and things in between. It
also includes how service conversations will be conducted, for example using web
interfaces or direct phone conversation.
Outsourcing
A big decision that can be applied within any of the above is the 'make or buy' choice of
whether to do things in-house, bring in external experts or pass on the work to third party
suppliers.
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Two key factors in the outsourcing decisions are first the ability of the company to do the
work in comparison with suppliers, and secondly the costs of doing this.
The impact on brand should be a key consideration also. Many companies who outsource
such as service calls have suffered huge brand damage from suppliers who do not deliver
brand values.
4) Product life cycle:
Product life cycle is a business technique that attempts to list the stages in the lifespan of
commercial/consumer products. 'Product Life cycle' (PLC) is used for determining the
lifespan of these products; such as the normal phases through which a product goes over
its lifespan. A by-product of this PLC information is Product Life cycle Management
(PLM). This is the management of the gathered PLC data to use in different aspects of the
business
Sub stages of a product
Development
In the development stage, the product goes through testing and a prototype is developed.
This is after considerable market research to identify consumer needs and wants. If the
product is deemed commercially viable, then the product may be put into mass production
and launched.
It is important to remember at this stage expenditure for the company is high. No income
is being received as there are zero sales. This is the first stage of the product cycle
lifespan.
Introduction
This is the stage in which a new product is first made available in the market. In the
introduction stage, customers are few, competition is less, sales are low, risk is high and
profits are low or nil. There are heavy distribution and promotion expenses. This stage is
full of risks and uncertainties. Prices are also high because (1) costs are high due to low
level of output. (2) Technological problems in production may not have been solved, and
(3) high profit margins are required to support the heavy promotion expenditure. The
product at the introduction stage requires high activity in promotion.
Growth
If the product is popular with consumers, then sales will start to rise. It may be a rapid
growth or a slower one. Rapid growths that fall away just as quick are called 'Fads'. That
process is known as Growth.
Advertising is often still heavy at this point
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Maturity
Once the product is well established and consumers are satisfied, then the product is
widely accepted and growth slows down. Before long, however, a successful product in
this phase will come under pressure from competitors. The producer will have to start
spending again in order to defend the product's market position or introduce extension
strategies.
It may only be in the Maturity stage where companies will receive a return on their
original expenditure and investment due to potentially high start up and development
costs.
Saturation: At the very end of the Maturity stage, and where there is no further growth
possible, saturation occurs. This is also referred to as Saturation Point. This is when little
or no advertising is needed and sales are levelling off. This is the period of stability.
During this period, the sales of the product reaches the peak. There is a steady demand for
the product and no possibility for growth. However, at this stage other competitors also
become popular and capture the market.
Decline Sooner or later sales fall due to changes in consumer tastes or new choices
available from competitor's products.
Again, extension strategies may be open to the company to keep the product alive. The
product can be declined if there is no proper growth and the later stage which has been
discussed above.
5) Market segmentation:
Market segmentation is a marketing strategy that involves dividing a broad target market
into subsets of consumer, who have common needs and priorities, and then designing and
implementing strategies to target them. Market segmentation strategies may be used to
identify the target customers, and provide supporting data for positioning to achieve a
marketing plan objective. Businesses may develop product differentiation strategies, or an
undifferentiated approach, involving specific products or product lines depending on the
specific demand and attributes of the target segment.
Criteria for segmenting
An ideal market segment meets all of the following criteria:
 It must be large enough to earn profit.

 It is possible to measure.
 It must be stable enough that it does not vanish after some time.
 It is possible to reach potential customers via the organization's promotion and distribution
channel.
 It is internally homogeneous (potential customers in the same segment prefer the same
product qualities).
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 It is externally heterogeneous (potential customers from different segments have different

quality preferences).
 It responds consistently to a given market stimulus.
 It can be reached by market intervention in a cost-effective manner.
 It is useful in deciding on the marketing mix.
 It identifies the target customer(s) (surrogate(s))
 It provides supporting data for a market positioning or sales approach.
Case Study
Question 1: Suggest bases for segmentation of market for groom plus products
Answer:
Segmentation is the division of market based on similarity of tastes and preference of the
customers. Different products ranges target different customer segments. If the marketers
know which segment of the market they are targeting, they can design their marketing mix to
suit the customers in the segment.
In the case studies mentioned, the target market for male fairness segment industry is the
metro sexual youth. The domain of marketing segment is limited to the cities. Therefore the
bases for segmentation should be a mixture of Individual marketing, niche marketing and
Local marketing.
Individual marketing is the extreme level of segmentation in which ABC can focus on
individual customers. The company can approach individuals through emails and tie up with
popular websites for promoting its own product. The company can send their promotional
mails to the large customer base of these websites.
The niche marketing can be an effort to position the fairness products in a smaller urban
market that have similar attributes and some specific unsatisfied needs. As research by the
company shows that men prefer bleach with its own fragrance and formulations niche
marketing can be an effective strategy.
Local marketing can help expand the marketing beyond the boundaries of the metro cities.
The idea should be to offer customized fairness product to suit the local markets.
As mentioned in the case study that the youths are driven by desire to look fairer, this
particular attribute can be exploited. Even McDonalds had to design their strategy to to suit
the local markets by introducing indianite products.
Besides certain segmentation variables has to be kept in mind such as age and life cycle
stage, gender, income, social class and certain psychographic attributes like values, beliefs,
lifestyle, personality before designing a segmentation of market.
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Question 2: Discuss the importance of packaging in marketing of the above product

range
Answer:
We all know that packaging adds value to the product in the form of easier handling and
secured usage. Packaging is very important for fairness products as it plays a vital role in its
appeal and sales of the product. A properly packaged product can result in repeat purchase by
the customers.
For a fairness product, an easy to use packaging which is secured and transparent is likely to
have better sales. Transparent packaging will help the customer view the contents of the
product and help them in their purchase decision making. Packaging is also vital for
preservation and their continual usage. In case of beauty products, size shape color, and
labeling should attract both visually and and psychologically.
For better recognition and preventing confusion it is important to maintain consistency in

packaging design.
Packaging should also facilitate easier handling by the retailers and dealers. It should also be
environment friendly as it would add to the good quality of the product and thus help in the
easy sale ability and marketability of the product. Innovative packaging can help distinguish
beauty products from those of competitors. Large package size can motivate the customers to
consume more as they have the feeling that they have bought a large quantity of the product
at the reduced rate.
The ultimate objective of packaging particularly in case of fairness products should be to
facilitate easier usage, secured handling and preventing any spillage while using. The shape,
size, color, and mode of packaging should appeal to their psyche. As a result it will help in
creating brand value and loyal customer base.
Question 3: Suggest a suitable promotion mix for creating awareness of the above range
of products.
Answer:
Promotion of a product requires a diligent deliberation. There are a wide variety of media to
choose from. Therefore it is indispensable to know the target customers, their location, the
message to be delivered, and the timing of the promotions.
The main purpose of promotion is to boost the sales of a product by creating design i.e., both
the consumer as well as trade demand. Suitable promotion mix in case of the beauty products
can be the following.
1. Selection of the right media like television, websites and lifestyle journals can be effective
in case of fairness product... Most visible display hoarding on the busy streets, health centers,
gym, spa etc. can help promote the product.
2. Point of purchase displays such as window displays, wall displays, danglers, balloons and
of course innovations like sniff teasers that spreads the aroma of product can be an effective
promotion mix.
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3. Distribution of free samples to niche segments to encourage them try a new product.
4. Free gifts, coupons, scratch card scheme can incentivize the customers buy the same
product again.
5. Devising strategies through money refunds and rebates so that qualified customers make
repeat purchase. The method of refund should be consistent and confidence boosting.
Besides publishing stories and articles in leading dailies and health magazines and promoting
social and health activities before launching the product can help build awareness. If a
products feature and specialty can be carried in the editorial section of newspapers,
publications or the broad cast medium, it can help not only in building awareness but also
build credibility.
Assignment - C
Objective Type Question
Question 1. The Selling Concept focuses on
A. Products
B. Customer needs
C. Markets
D. None of the above
Question 2. Market Means
A. The set of actual and potential sellers of a product

B. The set of actual and potential buyers of a product
C. Both buyers and sellers
Question 3. BCG stands for
A. Boston consumer goods

B. Boston credit groups
C. Bosston consultancy groups
D. Both a and b
Question 4. Marketing Mix Elements are
A. Product, price, place, and customers

B. Product, price, place and promotion
C. Product, price, place and physical distribution
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D. Both b and c
Question 5. Diversification means
A. A strategy for company growth by starting up or acquiring businesses outside the

company's current products and markets
B. A stage for company growth and starting up or acquiring other companies and their
products
C. A unit which deals in many products and services
D. Both b and c
Question 6. SBU stands for

A. State bank of Uttaranchal
B. Strategic business unit
C. Semi brand units
Question 7. Market Segmentation is
A. The process of classifying customer's into groups, each with different needs,
characteristics or behaviors.
B. The process of classifying the markets into groups each with same needs and
characteristics
C. The process of making the dealers and distributors happy about the products
Question 8. Strategic Control means
A. A critical review of the company's overall production effectiveness

B. A critical review of the company's overall financial effectiveness
C. A critical review of the company's overall marketing effectiveness
Question 9. Changes in incomes
A. An economic environmental factor

B. A political environment factor
C. A socio cultural environment factor
D. Both b and c
Question 10. Status is
A. The general life style given by the society

B. The general esteem given to a role by society
C. The symbol in the market
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Question 11. The first step in strategic planning is
A. Defining the company's mission

B. Designing the marketing program
C. Designing the business portfolio
Question 12. The 4c's of the marketing mix tactical tool kit are
A. Customer, cost, convienee and curve

B. Customer, cost, convience and coverage
C. Customer, cost, convienence and communication
Question 13. Promotion mix elements are
A. Price, advertising, publicity and sales promotion

B. Advertising, sales promotion, publicity and personal selling
C. Personal selling, strategy, advertising and publicity
D. Both a and c
Question 14. Marketing productivity audit includes:
A. Products, price and distribution analysis

B. Profitability analysis and cost effectiveness analysis
C. Advertising and sales force analysis
D. Both a and c
Question 15. Demography is
A. The study of human population in terms of size, location, age, gender, race,
occupation and other statistics
B. The study of the marketing plans
C. The study of all the activities in the organization
Question 16. A sample is a
A. Segment of the area in the market

B. Segment of the population selected to represent the population as a whole
C. Part of the data
D. Both a and c
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Question 17. The two types of sales forecasts are:
A. Industry and the market sales forecasts

B. Industry and the price forecasts
C. Industry and the company sales forecasts
Question 18. PVCM stands for
A. Percentage and value cost margin

B. Percentage-variable contribution margin
C. Percentage value cost margin
D. Both a and c
Question 19. Inventory turnover is
A. Gross margin/price
B. Sales/cost
C. Sales/average value of inventory
D. Both a and b
Question 20. The product is now more widely known and the sales grow rapidly is the stage
of
A. Introduction stage
B. Maturity
C. Growth
D. Decline
Question 21. The 4 stages of the PLC
A. Growth introduction maturity and new

B. Introduction, growth, maturity and decline
C. Introduction, decline, new product, growth
D. Both a and c
Question 22. The new product development process starts with
A. screening
B. idea generation
C. product development
D. none of the above
Question 23. The process of creating and developing product specifications that optimize the
function, value and appearance of the product is
A. Product design
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B. Market design
C. Industrial design
Question 24. Setting a price at or near competitive levels is
A. Penetrating pricing
B. Parity pricing
C. Competition pricing
D. Both a and c
Question 25. In advertising, GRP stands for
A. Grand rating points

B. Growth rating points
C. Gross rating points
Question 26. Inventory cost is
A. Annual sales/inventory turnover X inventory carrying cost

B. Total sales/inventory carrying costs
C. Total costs/annual cost
D. Both b and c
Question 27. The systematic design, collection analysis, and reporting of data relevant to
a specific marketing situation facing an organization is
A. Market research
B. Marketing research
C. Product research
D. Both a and c
Question 28. In collecting primary data, the two main research instruments are:
A. Mechanical devices and the telephonic conversation

B. Questionnaire and the mechanical device
C. Questionnaire and the telephonic conversation
Question 29. VMS stand for
A. Vertical marketing system

B. Vertical management system
C. Value marketing system
D. Vertical measuring system
Page 37 of 39
Question 30. A descriptive thought that a person has about something is called
A. Idea
B. Belief
C. Value
D. Description
Question 31. The collection of businesses and products that make up the company is
A. Product portfolio
B. Business portfolio
C. Market portfolio
D. Both a and c
Question 32. Two or more outlets that are commonly owned and controlled are
A. Business stores
B. Chain store
C. Products
Question 33. The practice of using the established brand names of two different companies
on the same product
A. Branding
B. Re branding
C. Co-branding
Question 34. The set of basic values, Perceptions, wants and behaviors learned by a member
of society from family and the important institutions is known as
A. Culture
B. Sub culture
C. Attitude
Question 35. The total combines lifetime values of all the company's customers is called
A. Product equity
B. Customer equity
C. Market equity
D. Both a and c
Question 36. CRM stands for
A. Cost recovery management

B. Customer relationship management
Page 38 of 39
C. Customer role in management

Question 37. Adding a standard mark up to the cost of the product is
A. Differentiated pricing
B. Cost plus pricing
C. Cost only pricing
Question 38. Human wants that are backed by buying power are called
A. Products
B. Demands
C. Markets
D. Both a and c
Question 39. Stocking the product in as many outlets as possible is called
A. Extensive distribution
B. Inclusive distribution
C. Intensive distribution
Question 40. In marketing, MIS stands for
A. Management information system

B. Marketing information system
C. Market idea system
D. Major information system
Solved by www.solvezone.in at very low price
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Marketing Management (Philosophies) NEW DL-2015

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Marketing Management (Philosophies) NEW DL-2015

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Marketing Management

Ques1. Define Marketing Management. Discuss the various management philosophies.

ANS. Marketing management is a business discipline which focuses on the practical

5 Important Marketing Management Philosophies

(1) Production Concept

(2) Product Concept

(3) Selling Concept

(4) Marketing Concept

(5) Societal Marketing Concept

5. Societal Marketing Concept

Ans. A marketing strategy is a plan developed by an organization that describes how a

 Consumer marketing research, and

Or, alternatively, by methodological approach:

 Qualitative marketing research, and

Consumer marketing research is a form of applied sociology that concentrates on

Marketing research process

Picking out the appropriate methodology- A specific methodology is entailed by the

 Data Collection Process- Methods for collecting and preparing quantitative

- The entire process is properly documented with respect to organizational standards so

Marketing research example

Sources of marketing data

(A) Internal Sources:

Sheets of different years), salesmen’s reports, statistics in relation to advertisement

(B) External Sources:

These sources are explained below:

This source of collecting primary data is of great importance. Representative samples of

The main sources of secondary data are:

(a) Periodicals and Newspapers:

(b) Govt. Publications and Reports:

(c) Trade Associations:

(d) Published Surveys Of Markets:

(e) Foreign Govts, And International Agencies:

(f) Other Sources:

Ques4. What do you mean by productivity analysis? Differentiate between productivity

Ans: Productivity analysis is a new approach to evaluate technologies in production

A small business needs to be highly productive in order to survive. In fact, whether a

We then recommend improvements or strategies to address those areas of reduced

Ans. MEDIA SCHEDULING

1. Nature of product- consumer usable, durables or industrial

2. Nature of sales-whether seasonal or regular sales.

3. Product lifecycle- whether introduction, growth, maturity or decline.

4. Pattern of competitor’s programmes.

5. Entry of new competitors.

6. Availability of funds for advertising.

Procedure for evaluating advertising program

What am I going to evaluate?

Sales promotion is needed to attract new customers, to hold present customers, to

Advertisement can be defined as the “paid form of non-personal presentation and

It is an impersonal presentation where a standard or common message regarding the

Advertisement is given by an identified company or firm or individual.

2. Sales Promotion:

(a) Short and immediate effect on sale.

(b) Stock clearance is possible with sales promotion.

(c) Sales promotion techniques induce customers as well as distribution channels.

(d) Sales promotion techniques help to win over the competitor.

Sales Promotion Techniques for Customers:

(iv) Premiums or Gifts/or Product Combination:

(v) Quantity Deals:

It refers to participation of consumers in competitive events organised by the firm and

(viii) Instant Draws and Assigned Gifts:

(ix) Lucky Draw:

(x) Usable Benefits:

(xi) Full Finance @ 0%:

(xii) Packaged Premium: