2020

Basics of Marketing-session I

SHREYA SATISH SARWADE

23-1632, CLUSTER 3-FN
8/22/2020
 Q1. What is the definition of marketing?

Answer-
Marketing is all about recognizing and meeting the human and social needs
and wants. In short “meeting needs profitably”.
Marketing is a social and managerial process by which individual and
groups obtain what they need & wants through creating, offering &
exchanging products of value with others.
For example- when Google and IKEA recognized that “what people want?”
this two firms understand the wants and needs of customers, market and
turned a private and social needs into a profitable business opportunity.
The American marketing association gives a definition of marketing is-
“Marketing is the activity, set of institutions, and processes for creating,
delivering, communication, and exchanging offerings that have value for
customers, clients, partners, and society at large.”
Marketing is the art of creating & satisfying customers at a profit.
A social definition of marketing is- “Marketing is a societal process by
which individuals and groups obtain what they need and want through
creating, offering, and freely exchanging products and services of value
with others.”
Some examples of good marketing is-
1. Nintendo designed a Wii game system.
2. Apple launched apple iPad tablet.
3. Toyota designed and launched its Toyota Prius.
These manufacturers had designed and provide right product to the
market, based on marketing homework about customers, competitors, and
all external factors which can affect cost and demand of the product.
There are some examples of products that have failed are-
1. Nokia.
2. Kodak.
3. Ambassador car.
So it’s very necessary to make yourself change with the needs of
customers and market.
 Explain needs, wants and demands with proper examples.

Answer-
Explanation of needs, wants and demands:-
1. Needs:- i) “Needs are the state of self deprivation in an individual.”
ii) The starting point of marketing is human needs.
iii) Human needs can be physiological, cultural, social &
individual.
iv) Basic needs- food, shelter, clothing, warmth, safety etc.
Social needs- belongings, affection
individual needs- knowledge, self expression.
2. Wants:- i) wants are desires for specific satisfaction of needs.
ii) the needs of the humans are unlimited so, to satisfy
unlimited needs a person desires for different products,
services & methods. Such desire to satisfy the needs is
called wants.
iii) wants depends on the culture, social class and
individual personality.
iv) eg. American needy food- wants a hamburger.
Mauritian needy food- wants rice ,lentils, beans.
3. Demands:- i) demands are human wants backed by ability and
Willingness to buy.
ii) person wants only those goods which provides them
maximum satisfaction.
iii) marketers can influence demand by offering
 products at different price & quality.
Q3. “Demands are backed by buying power” justify the statement with proper
examples.

Answer-

 Demand is different from wants.

 Human wants that are backed by buying power & Willingness to buy.
 Person wants only those goods which provides them maximum
satisfaction.
 And when people have sufficient money to afford those wants, that
would be their demand.
 Example- A person want an iPhone, if he have enough money source
then he will buy an iPhone and That iPhone becomes his demand only
because he have enough money to spend on iPhone.
Q4. What is the definition of Product, Explain with examples for attention,
acquisition and use or consumption?

Answer-

 A product can be anything offered to a market for attention,

acquisition, use or consumption to satisfy need or want.
 It includes- Physical Objects
- Services
- Persons, e.g. shahrukh khan for advertising or branding
takes 3 cr.
-Organisation
-Ideas.
 E.g. For Attention- Costly Watches, Luxury Cars.
For Acquisition- Property, Land.
For Use or Consumption- Clothes, Furniture.
Q5. Explain Service, Person and Idea as a product with examples.

Answer-

Service – (Always Intangible)

Any intangible activity/ benefits that one party can offer to

Another which does not results in the ownership of anything.

e.g. 1. Beauty parlour service.

2. Transportation service.
3. car servicing.
Person- A human being regarded as an individual.
e.g. 1. An individual
2. an entity, HUF (in legal terms)
Idea- A thought or suggestion as to a possible course of action.
e.g. 1. Marketing Strategy.
2. Education.
Q6. Explain Service with special attention to Intangible and Ownership
properties.

Answer-

 Any intangible activity or benefit that one party can offer to another
party which does not result in ownership of anything.

e.g. 1. Banking.

2. Hospital.

3. Hotels.
Q7. Explain Customer Value with suitable examples

Answer-

 Difference between the value customer gains from owning and using a
product & the cost of obtaining the product.

 Customer Value is the incremental benefit which a customer derives

from consuming a product after paying in return.
  The term value derives the benefits that a customer gets from a
product.
 It’s a difference between benefits and cost.
 Customer value is dependent on the three factors – Quality, Service
and Price.

Q8. Define Customer Satisfaction. Your answer must include

Dissatisfied, Satisfied and Delighted customers?

Answer-
 The extent to which a product performance matches a buyer’
expectations it is called as customer satisfaction.
1. Dissatisfied- The product’s performance falls short of expectations.
2. Satisfied- The product’s performance matches the expectations.
3. Delighted- The product performance exceeds the expectations.

Q9. How is ‘Quality’ related to ‘Customer Satisfaction’? Explain

with examples ?

Answer-
 Quality- It is the totality of features & characteristics of a product or
service having the ability to satisfy customer needs.
  Higher levels of quality result in
greater customer satisfaction.
 Fundamental aim of total quality
has become total customer satisfaction.

Q10. What is Exchange?

Answer-

 The act of obtaining a desired object from someone by offering

Something in return.
 E.g. Exchanging old phone with new phone and remaining amount
will be paid in cash/cheque.
Q11. Explain Transaction with reference to an Invoice ?

Answer-
 Trade between 2 parties that involve at least 2 things of value, agreed
upon conditions, a place of time, and a time of agreement.
 Invoice- An invoice is a time-stamped commercial document that
records a transaction between a buyer and a seller. If
goods or services were purchased on credit, the invoice usually
specifies the terms of the deal and provides information on the
available methods of payment.
 Types of invoices may include a receipt, a bill of sale, debit note, sales
invoice, or online electronic record.
Q12. Explain Relationship Marketing with examples ?

Answer-

 Relationship marketing- the process of creating, maintaining &

enhancing strong, value laden relationship with customers & other
shareholder.

 Relationship marketing is about forming long-term relationships with

Customers. Rather than trying to encourage a one-time sale,
relationship marketing tries to foster customer loyalty by providing
exemplary products and services.
 E.g. 1. Dell computers created a special online store for high volume
corporate customers.
 2. IKEA- the Swedish furniture maker has a worldwide base of
Intensely loyal customers.

Q13. What is Market? How do we determine the Size of the

Market?

Answer-

 The Set of all actual & potential buyers of product or service.

 The buyers need or want are satisfied by exchange & relationship.
 Market is a physical place where buyers and sellers gathered to buy &
sell goods.
 Market is a place where collection of buyers & sellers who transact
over a particular product and product class.
 Size of the market is determined by the number of these buyers &
sellers. The more the number the bigger the market.
Q 14. What is Demarketing? Provide examples to Demarketing.  “Demarketing
has to be used carefully” Justify this statement

Answer-

 Basically this concept is the opposite of marketing.

 Demarketing – marketing to reduce demand temporarily or
permanently with the aim not to destroy demand but only reduce or
shift the same.
 E.g. cigarette company- in earlier days, cigarette companies were
advertising on TV, but after that it was banned to advertise it on TV
and any other medium.
 -Now a days we see some ads of cigarettes and alcohol which says that
it’s harmful for our health. So avoid that and for this Government
introduced excise duty. it’s a best example of demarketing.
Therefore, Demarketing has to be used carefully.

Q15. “Selling and Marketing concepts contrasted” Elaborate this statement

with appropriate examples

Answer-

 Selling Concept-

Starting Focus Means ends

Factory Existing Products Promoting/ Profit

Selling

Selling Concept

 Consumer will not buy enough of the firms products unless it

undertaken a large scale selling & promotion efforts.
 Focuses on creating sales transaction rather than long term profitable
relationship.

 Marketing Concept-

Starting Focus Means Ends

Market Customer Need Integrated Profit

Marketing
Marketing Concept

 The concept about understanding customer needs & providing right

products for customer.

Q16. Societal Marketing must improve the Consumer’s and Society’s

well being” Justify this statement with appropriate examples

Answer-
 The societal marketing concept holds that a company should make
good marketing decisions by considering consumer’s wants, the
company’s requirements, and society’s long-term interests.

E.g. Coca cola with Zero Sugar & Caffeine, Electric Vehicles.

Q17. Which are the Jerome McCarthy’s 4P’s of Marketing?

 Answer-

 It is a Business Oriented Version.

1. Product- (Goods or Service)

2. Price- (Discount, Offer Price)
3. Place- (Market, Distribution)
4. Promotion- (Advertising, Publicity, Sales Promotion.)

Q18. What are the relevance of the new P’s- People, Process and
Physical Evidence? Site proper examples for each one of them

Answer-

People- E.g., A hotel may be popular not only because of the infrastructure
but also because of the service provided by its staff. Customers often buy
offerings where the service staff is courteous, knowledgeable, and value the
customer.

Process- The organizations should strive to make the process as hassle free
as possible.

E.g., A customer wants to have access to internet banking then he may

submit account & personal details online with the bank instead of going and
submitting a physical format the branch.
Physical Evidence- E.g., For a hotel a customer will assess the room, the
ambience, the well-dressed staff, reception desk, towels, bedsheets, etc to
rate the service offering.

Q19. Explain 4C’s with suitable examples

Answer-

Consumer Oriented Version-

Customer- Do your products/services satisfy customers’ wants and needs?

Convenience- Your products/services are easy to find and buy.

Cost- The total cost of ownership including actual cost, traveling to buy it,
inconveniences.

Communication- You develop two-way dialogues with your prospects and

customers (usually via social media).

Q20. Explain 4A’s with special reference to Rural Marketing

Answer-

Customer Value Perspective

Organized around then values that matters most to customers.

Acceptability- Your products and/or services meet or exceed customers’
needs and expectations.

Affordability- Your customers can afford your products/services and are

willing to pay (perceived value).

Accessibility- Customers can easily buy and use your products/services.

Awareness- Customers have enough information about your

product/service’s features and benefits to try them…or continue buying
them.

Customers behaves as Seekers, Selectors, Payers, & Users.

Q21. Explain the concept ‘Marketing Myopia’ with relevant Examples

Answer-

 It suggests “Meeting customers need rather than on selling products.”.

Long term benefits Vs Short term gains.
 Company may be in risk if they will not pay attention to customers
need.
 E.g. 1. Kodak market share loss to Sony Digital Cameras.

2. Nokia losing market share to Android and IOS.

3. Hollywood losing Market to OTT Platforms.

4. Ambassador Car to Maruti.

5. HMT to Titan & Fastrack.