1. Explain briefly the different types of strategies to positioning the products.

Ans:
i. Using product characteristics or customer benefits:

Inthiscase,segmentationisdonekeepinginmindtheproductcharacteristicsorcustomerbenefits.Someti
mes,anewproductispositionedwithrespecttoaproductcharacteristicthatcompetitorshaveignored.Be
nQwaspositionedasaproviderofmorphing-
enabledmobilepictures,afeatureabsolutelynewinthemarket.Sometimesaproductattemptstopositioni
tselfalong with
twoormoreproductcharacteristicssimultaneously.Forexample,Mahindra&MahindraScorpiowaspo
sitionedasbothreliableandtrendyMUV.
a. Physical characteristics:

These are the most objective criteria and can be measured on some physical scale
such as temperature, colour, intensity, distance, strength of fragrance etc.
b. Pseudo-physical characteristics:

These reflect physical properties that are not easily measured. The examples are
spiciness, type of fragrance, shininess, creaminess etc.
c. Benefits:

These refer to advantages that promote the wellbeing of the consumer. Examples are
thirst quenching, hunger satisfying, not harming the skin etc.

ii. The price-quality approach:

Thisapproachjustifiesvariousprice-
qualitycategoriesoftheproducts.Manufacturersdeliberatelyattempttooffermoreintermsofservice,fe
aturesorperformanceincaseofcertainproductsknownasPremiumproductsandinreturn,theychargehig
herprice,partlytocoverhighercostsandpartlytohelpcommunicatethefacttheyareofhigherquality.Ont
heotherhand,therearesomeproductsknownasmassproducts,wherethemainmatterof
concernispricekeepingand minimumqualitystandardcommitment.
Forexample,ifyouconsideracompanylikeMarutiSuzukiinIndianautomobilemarket,youwillseethatt
heyhaveMaruti800andMarutiOmniinAsegment (2-2.2lakhs),MarutiZenandWagon-
RinlowerВsegment(2.2-3.5lakhs),MarutiAltoVxiinupperВsegment (3.5-
5lakhs),MarutiSuzukiBalenoinСsegment(5-7lakhs),MarutiGrandVitaraXL-7inhigh-
endSUVsegmentandMarutiBalenoAlturainEstatesegment.

iii. The use or applications approach:

Anotherwaytopositionistoconsidertheuseorapplication.OnegoodexampleisItchGuardsinointment(
creambase)fromParasPharmaceuticals,whichhasbeenpositionedasan Over TheCounter
(OTC)medicine (i.e.
themedicinethatdoesnotrequireprescription)to“relievesweatitchduetoINTERTRIGO”.

iv. The product – user approach:

Thisdealswithpositioningaproductkeepinginmindaspecificuseroraclassofusers.Cosmeticsbrandsli
keRevlon,L’OrealorLakmepositionthemselvestargetingfashion-consciouswomen.

v. The product-class approach:

Someproductsneedtomakecriticalpositioningdecisionsthatinvolveproduct-
classassociations.Forexample,NescafeBrupositioneditselfasinstantcoffee.

vi. The cultural symbol approach:

Manycompaniesusedeeplyentrenchedculturalsymbolstodifferentiatetheirbrandsformtheircompetit
ors.TheuseofacharacternamedGattubyAsianPaintshelpsthetopositionitselfasabrandthatisalwaysre
adytohelp,quickindecision-makingandverymuchyoungandcontemporary.
vii. The competitor approach:

Thepositioningcanbemadewithanexplicitorimplicitframeofreferenceofoneormorecompetitors.The
reare2reasonsbehindthis:
a. The competitor may have a firm, well-defined image developed over many years and this
image can be used as a bridge to help to communicate another image referenced to it. It is
like when you give your address, you mention some well-known landmarks like bank,
office, school etc.

Sometimes it is not only important how good the consumers think about you, but also it is
important that they believe you are better than a given competitor.

b. The very good example can be found in newspapers’ and magazines’ market, where the
newspaper like DainikJagran or magazine like Business World compare themselves with
competitors like Punjab Kesari or Business Today respectively in terms of circulation and
readership.

2. Explain the Product Positioning Process.

Ans:
Product positioning is the process marketers use to determine how to best communicate their
products' attributes to their target customers based on customer

PROCESS-
1. Define the market where the product will compete:
 Identify your existing market position and how the new positioning will be beneficial in setting
you apart from competitors.
You need to know what alternatives customers have to your product so you can highlight what
sets your offering apart. Research your direct and indirect competitors to understand how they
serve your customers’ needs. This will allow you to differentiate your product from the
competition and help you explain to potential customers why your solution is the best option to
solve their problems.
2. Identify the attributes to find the product space:
The product may be positioned on the basis of product features. For example an
advertisement may attempt to position the product by reference to its specific features.
Although this may be a successful way to indicate product superiority, consumers are
generally more interested in what such features mean to them, that is, how they can benefit
by the product. For example Maruti has been focusing on “good mileage” as the additional
feature and “Hyundai” talks about “better comfort” as the main feature.
3. Collecting information about customers and other attributes:
Having identified a set of competing products, the marketer needs to know as to what
attributes are determinant for the target market and the product category under consideration.
He or she also needs to know as how different products are the competitive set are viewed on
these attributes.

Generally, this market knowledge is developed by first conducting qualitative research,

perhaps interviews or focus groups, to learn as to which attributes are determinant. Then,
quantitative research follows, perhaps a survey of consumers about their perceptions,
together data on how competing products score on these attributes. It involves use of good
many statistical analytical tools.

4. Determine each product share and mind:

Market share of each product is the percent of total sales in an industry generated by a particular
company. Market share is calculated by taking the company's sales over the period and dividing
it by the total sales of the industry over the same period. This metric is used to give a general
idea of the size of a company in relation to its market and its competitors. The market leader in
an industry is the company with the largest market share.
5. Determine other products situation in the market:
Identify the conditions of the marketplace and the amount of influence each competitor can
have on each other.
In most positioning strategies, an explicit or implicit frame of reference is one or more
competitors. In some cases, the reference competitors can be the dominant aspect of the
positioning strategy. It is useful to consider positioning with respect to a competitor for two
reasons.
First, a competitor may have a firm, well crystallized image developed over many years.
Second, sometimes it is not important how good customers think you are; it is just important that
they believe you are better than a given competitor.
6. Determine the target market preferred combination of attributes:
 Are your consumers buying a brand because it truly meets their needs? If not, ask what is
missing. For years, diet soda advertising focused on zero calories. Coca-Cola understood that
consumers wanted a refreshing soft drink -- not a diet drink -- that tasted good and happened
to be calorie-free. Consumers drink Diet Coke Just for the Taste of It.
There are several ways that analysts can measure customer preferences and include them in a
positioning analysis. For instance, survey respondents can be asked to think of the ideal product
or brand within a product category-a hypothetical brand possessing the perfect combination of
attributes from the customer’s view point. Respondents could then rate their ideal product
existing products on a number of attributes.

An alternative approach is to respondents not only to judge the degree of similarity among pairs
of the existing brands but also to indicate their degree of preference for each. In either case, the
analyst using the appropriate Statistical techniques, can locate the respondent’s ideal points
relative to the positions of the various existing brands on the product space map.

Another method of assessing customers’ preferences and trade-offs among them is a statistical
technique called conjoint analysis. Customers are surveyed and asked their preferences among
various real or hypothetical product configurations, each with attributes that are systematically
varied. By analysing the resulting data, the marketer can learn which of several attributes are
more important than the others. These results can be then used in positioning analysis.

7. Examine the fit between the product and new market:

Product/market fit, also known as product-market fit, is the degree to which a product
satisfies a strong market demand.
Product/market fit has been identified as a first step to building a successful venture in which the
company meets early adopters, gathers feedback and gauges interest in its product

In principle, you can measure product/market fit with surveys that identify what percentage of
your users think your new product is a ‘must-have’. But more often than not, product/market fit
is less about hypothetical numbers and percentages, and more about an in-depth and tangible
understanding of who your customers are, and how they feel about you and your product.
Is it creating organic growth, where people spread the word on their own? Are people willing to
pay for your product? If they are, you have product/market fit. The road to product/market fit is
often driven by finding customers via word-of-mouth, before you build a marketing engine to
scale user acquisition.

As a start-up or early-stage company, your product/service will probably satisfy a small segment
of the market (hopefully a good market!). As you grow, so will your understanding of the
problem you are solving; and with this understanding, your customer profile might evolve.

3. Define CLV. What are its uses?

CLV can be defined as customer lifetime value this term is used for computing the dollar value of
an individual customer relationship. In other words this term representsthe total amount of money a
customer is expected to spend in your business on your product and services, during their lifetime (term
of their relationship with your company).
To calculate CLV we need to calculate average purchase value and then multiply that number by
the average purchase frequency rate to determine customer hell then once we calculate average customer
live we can multiple that by customer value to determine Customer value.
CLV is important for any sort of business because customers aren’t just worth the amount of
money they spend on a business today. Higher the CLB the greater are profits. Any business have to
spend money to acquire new customers and to retain existing ones.

Uses of CLV are:

To determine how much to spend to acquire a new customer since CLV represent exactly how
much each customer is worth in monetary terms and does exactly how much a marketing dept. should be
willing to Spain to acquire each new customer.
To determine how aggressively to Spend to retain a customer or a group of customers CLV
encourages marketers to focus on the long-term value of customers instead of investing resources in
cheap customers with low total revenue value hence helps in optimal allocation of limited resources for
ongoing marketing activities in order to achieve a maximum return.

4a)Margin (M) = $65 per customer, Retention spending (R) = $2 per customer, Average length
of customer enrollment = 22 months. What is the CLV for Average Customer?
(a) CLV= (M-R)*Average length = (65-2)*22 =$1,386

b)Amazon Prime Charges $3.75 per month, Variable costs are about $0.25 per account per
month. With marketing spending of $2 per year, their attrition is only 0.5% per month. At a
monthly discount rate of 1%, what is the CLV of a customer?
(b) $M= $3.75 -$0.25= $3.50
$R=$2/12 = $0.166
r= (1- attrition rate) = (1-0.005) = 0.995
d=0.01
CLV = ($M-$R)*{(1+d)/ (1+d-r)}
= ($3.75 -$0.166)*{(1.01)/ (1.01-0.995)}
=$224.45

5. Write short notes on “The 7P’s of Marketing Mix” & ”The 4 P’s of Marketing”.
The 7P’s of Marketing Mix
The services marketing mix is also called the 7Ps and includes the addition of process, people
and physical evidence.

Price

Price is the amount the consumer must exchange to receive the offering.
The company’s goal in terms of price is really to reduce costs through improving manufacturing
and efficiency, and most importantly the marketer needs to increase the perceived value of the
benefits of its products and services to the buyer or consumer.

Place
Place includes company activities that make the product available to target consumers.
Place is also known as channel, distribution, or intermediary. It is the mechanism through which
goods and/or services are moved from the manufacturer/ service provider to the user or
consumer.

Product
Product means the goods-and-services combination the company offers to the target market.
For many a product is simply the tangible, physical item that we buy or sell. You can also think
of the product as intangible i.e. a service.

Promotion
Promotion includes all of the activities marketers undertake to inform consumers about their
products and to encourage potential customers to buy these products.
Promotion includes all of the tools available to the marketer for marketing communication.

Physical Evidence
Physical evidence is the environment in which the service is delivered, and where the firm and
customer interact, and any tangible components that facilitate performance or communication of
the service.
Physical Evidence is the material part of a service. Strictly speaking there are no physical
attributes to a service, so a consumer tends to rely on material cues. Examples of physical
evidence, include buildings, equipment, signs and logos, annual accounts and business reports,
brochures, your website, and even your business cards.

People
People are. . . All human actors who play a part in service delivery and thus influence the buyers’
perceptions; namely, the firm’s personnel, the customer, and other customers in the service
environment.
People are the most important element of any service or experience. Services tend to be produced
and consumed at the same moment, and aspects of the customer experience are altered to meet
the individual needs of the person consuming it.

Process
Process is . . . The actual procedures, mechanisms, and flow of activities by which the service is
delivered – this service delivery and operating systems.
There are a number of perceptions of the concept of process within the business and marketing
literature. Some see processes as a means to achieve an outcome, for example – to achieve a 30%
market share a company implements a marketing planning process. However in reality it is more
about the customer interface between the business and consumer and how they deal with each
other in a series of steps in stages, i.e. throughout the process.

.
The Marketing Mix 4Ps are:
 Product includes options, quality, design, features, packaging and other related
services.

 Price includes list price, marked price, discounts, shipping costs and competitors’
prices.

 Place includes distribution channels, platforms, websites and other online presences,

physical locations, inventory, and delivery.

 Promotion includes branding, content marketing, advertising, search, influencer

relations, social media, PR and sales.

6. Define Targeting. What is the basis of Target marketing? Briefly explain any 2 of them.
Target Marketing (Targeting) refers to a concept in marketing which helps the marketers to
divide the market into small units comprising of like-minded people. Such segmentation helps
the marketers to design specific strategies and techniques to promote a product amongst its target
market. A target market refers to a group of individuals who are inclined towards similar
products and respond to similar marketing techniques and promotional schemes.

The basis of Target marketing is:

• Age
• Gender
• Interests
• Geographic location
• Need
• Income&Occupation

Need Targeting: Obese individuals all across the globe look forward to cutting down their
calorie intake. Marketers understood their need and came up with Kellogg‘s K Special which
promises to reduce weight in just two weeks. The target market for Kellogg‘s K Special diet
would include obese individuals whose common needs fall on losing weight.

Age is the most basic variable of them all, albeit the most important because consumer
preferences continually change with age. Almost all marketing campaigns target age-
specific audiences. This variable can be viewed regarding specific age ranges or life
cycle stages: babies, children, adolescents, adults, middle-age, and seniors. For example,
many famous fashion designers have different collections to target other age groups.
They aim certain clothing lines at specific age ranges, such as a chic fashion line at
younger prospects and a more formal and elegant line at older individuals.
 Gender: Men and women generally have different likes, dislikes, needs, and thought
processes. For instance, few men apply makeup, and most women don’t wear boxers.
Also, women typically do most of the household grocery shopping and are more likely
than men to donate  to charitable causes. These are all key factors to consider when
creating a campaign.

Income:Income targeting lets us measure the buying power of our audience. When we

know the income range of consumers, we can usually find data to support how people
spend money on both the higher and lower end of the spectrum. Many companies use
this data to sell different tiers of the same product, based on income level. For instance,
airlines have three classes: economy, business class, and first-class.

7. Write short notes on: a)Exclusive Clustering, b)Overlapping Clustering

Ans: a) Exclusive Clustering :
==>This separation is based on the characteristic that allows a data object to exist 1 or more than 1
clusters.
Exclusive clustering: is as the name suggests and stipulates that each data object can only exist in one
cluster.
==> each object is only a member of one cluster
 ==> data are grouped in an exclusive way, so that if a certain datum belongs to a definite cluster
then it could not be included in another cluster.

 Ex: separation of points is achieved by a straight line on a bi-dimensional plane.

b) Overlapping clustering:
 ==> Allows data objects to be grouped in 2 or more clusters.

 Example: Breakdown of personnel at a school:

It would allow a student to also be grouped as an employee while exclusive clustering would demand
that the person must choose the one that is more important.
 uses fuzzy sets to cluster data, so that each point may belong to two or more clusters with
different degrees of membership.

8. Write short notes on: a)Hierarchical Clustering, b)Probabilistic Clustering

) Hierarchical clustering algorithm” :
 Based on the characteristic of nesting clusters.

 Hierarchical clustering are nested by this we mean that it also clusters to exist within bigger
cluster.

 Hierarchical clustering, also known as hierarchical cluster

analysis, is an algorithm that groups similar objects into groups
called clusters. Seeks to build a hierarchy of clusters.
Hierarchical clustering involves creating clusters that have a
predetermined ordering from top to bottom. For example, all files
 and folders on the hard disk are organized in a hierarchy. There
are two types of hierarchical
clustering, Divisive and Agglomerative.

b) Probabilistic clustering /Fuzzy clustering :

 ==>Every data object belongs to every cluster, extreme version of overlapping.

Major difference:
 Data objects has a membership weight that is between 0 to 1.

 0: it does not belong to a given cluster.

 1: means it absolutely belongs to the cluster.

 Fuzzy clustering is also known as probabilistic clustering.

9. Explain the Conjoint Analysis Process Flow

10. What is a Conjoint Analysis? What are its uses?

Ans-
Conjoint analysis is a popular method of product and pricing research that uncovers consumers’ preferences
and uses that information to help select product features, assess sensitivity to price, forecast market shares, and
predict adoption of new products or services.
Conjoint analysis is frequently used across different industries for all types of products, such as consumer goods,
electrical goods, life insurance plans, retirement housing, luxury goods, and air travel. It is applicable in various
instances that centre around discovering what type of product consumers are likely to buy and what consumers value
the most (and least) about a product. As such, it is commonplace in marketing, advertising, and product
management.
Businesses of all sizes can benefit from conjoint analysis, including even local grocery stores and restaurants — and
its scope is not just limited to profit motives, for example, charities can use conjoint analysis’ techniques to find out
donor preferences.
Uses

Usages of Conjoint Analysis

🞂 Breaking down customer’s overall utility from the

product into values put in by him on the products

individual attributes.

🞂 Product planning and design

🞂 Accommodating conflicting interests-

🞂 Buyers want all of the most desirable features at lowest

possible price

🞂 Sellers want to maximize profits by:

🞂 Minimizing the costs of features provided

🞂 Providing products that offer greater overall value than the

competitors.
🞂 Market segmentation based on the utility structures

11. Explain the 5 steps to use market Positioning to accelerate Organic Growth.
12. Write short notes on Competitor based positioning & Image based Positioning.
Ans- Competitor-Based Positioning
Business is nothing if not competitive. Therefore, with this positioning strategy, a company
takes aim at one or several competitors to demonstrate its superiority among others offering the same
type of product or service.
Example-  Car insurance companies often employ this strategy to establish a powerful brand by
comparing their rates or service to those of other companies. The message is that consumers should
cancel their old policies and purchase their coverage from a different and better insurer.

Competition based positioning

Identify the appropriate category
Distinguish from other category members or key
competitors on important dimensions
Image based positioning or goal based positioning
Depict Brand as way to satisfy customer needs
Build a strong, consistent set of associations with the brand

13. a)Alliance Broadband wants to know how much each of their customers is worth. Calculate
the CLV for an average client subscription.
Monthly subscription cost: $10
Average retention marketing cost per customer: $4
Average length of customer relationship: 40 months
Ans: CLV= (M-R)*E= (10-4) * 40=240
b)Zomato provides a weekly home delivery service. What is the short term margin for the
CLV formula.
Weekly Margin: $10
Annual spending on customer retention: $175 per customer
Ans: Short term margin= (M-R)
 10- (175/52)= 6.635

14. a)Hathway Broadband wants to know how much each of their customers is worth. Calculate
the CLV for an average client subscription.
Monthly subscription cost: $15
Average retention marketing cost per customer: $14
Average length of customer relationship: 38 months
: CLV= (M-R)*E = (15-14) * 38 = 38
b)Zomato provides a weekly home delivery service. What is the short term margin for the
CLV formula.
Weekly Margin: $12
Annual spending on customer retention: $165 per customer
Ans: Short term margin= (M-R)
12 – (165/52)=8.83

15. What is a Market? Write short note on Marketing Funnel.

16. Write short notes on STP Framework and Types of Market Segmentation.
STP is a broad framework that summarizes and simplifies the process of market segmentation.
Market segmentation is a process in which the market is divided according to range of variables
determining characteristics & Tendencies of the market.
The STP Model includes three divisions or steps: Segmentation, Targeting and Positioning.
 Segmentation is a concept which divides the complete market setup into smaller subsets
comprising of consumers with similar taste, demand & preference or like
mindedindividuals.One market segment is totally distinct from another segment, based on
Gender, Age, Income, Occupation, Marital status, etc.
 The process of creating an image of a product in the minds of the consumers is called as
positioning. Positioning helps to create first impression of brands in the minds of target
audience. In simpler words positioning helps in creating a perception of a product or
service amongst the consumers.
 Target Marketing refers to a concept in marketing which helps the marketers to divide the
market into small units comprising of like minded people. Such segmentation helps the
marketers to design specific strategies and techniques to promote a product amongst its
target market. A target market refers to a group of individuals who are inclined towards
similar products and respond to similar marketing techniques and promotional schemes.

Example of STP:
Marriott International® owns a number of different hotel chains that target specific consumer
groups. For example, Courtyard by Marriott® hotels focus on travelers on the road, who want a
nice, clean place to stay during their trip; Ritz-Carlton® hotels target those who don't mind
paying a premium for luxury; and Marriott ExecuStay® hotels are aimed at professionals who
need a longer-term, comfortable place to stay. As you can imagine, Marriott International doesn't
communicate the same marketing message to all its customers. Each hotel is designed and
positioned to appeal to the unique wants and needs of a specific group.
Market can broadly be segmented by Demography, Geography, Psychography and Behaviour.
• Demographic- based on age, race, religion, culture, family size, ethnicity, income,
education, etc.

• Geographic - based on physical or geographical location of the customer. Needs of a

person from South India is different from a person living in North India due to climatic or
other reasons.

• Psychographic- depends on lifestyle of individuals, attitudes, interests, values help

marketers classify them.

• Behavorialistic- loyalties of customers towards particular brand help marketers classify

smaller groups, each group loyal to a particular brand.

17. What is K-Means Clustering? Explain with an example

 Simplest unsupervised learning algorithms that solve the well known clustering problem.
 AIM: To classify a given data set through a certain number of clusters (assume k clusters)
Main idea :
==>To define k centroids, one for each cluster.
 (Point where the three medians of the triangle meet.)
 Best choice:
1. Place centroid as much as possible far away from each other.
2. Take each point belonging to a given data set and associate it to the nearest centroid.
• Type of unsupervised learning, which is used when you have unlabelled data (i.e., data without
defined categories or groups).
Goal of this algorithm :
• To find groups in the data, with the number of groups represented by the variable K.
• Works iteratively to assign each data point to one of K groups based on the features that are
provided.
• Data points are clustered based on feature similarity. 
• Centroids of the K clusters, which can be used to label new data
• Labels for the training data (each data point is assigned to a single cluster)

18. Write short notes on Agglomerative Hierarchical Clustering and Divisive Hierarchical
Clustering.
 Simplest unsupervised learning algorithms that solve the well known clustering problem.
 AIM: To classify a given data set through a certain number of clusters (assume k clusters)
Main idea :
==>To define k centroids, one for each cluster.
 (Point where the three medians of the triangle meet.)
 Best choice:
3. Place centroid as much as possible far away from each other.
4. Take each point belonging to a given data set and associate it to the nearest centroid.
• Type of unsupervised learning, which is used when you have unlabelled data (i.e., data without
defined categories or groups).
Goal of this algorithm :
• To find groups in the data, with the number of groups represented by the variable K.
 • Works iteratively to assign each data point to one of K groups based on the features that are
provided.
• Data points are clustered based on feature similarity. 
• Centroids of the K clusters, which can be used to label new data
• Labels for the training data (each data point is assigned to a single cluster)

19. What is Self Explicated Conjoint Analysis Method. Explain

Ans: The Self-Explicated model although strictly may not be considered as a "Conjoint" study,
the results and the data analysis is often equivalent to a choice-based or a ratings based conjoint
study.The Self-Explicated Model allows for users to rate attributes and levels they consider
important. This model can be broken down into 4 parts :-
 Level Elimination
In this optional section, respondents are shown all the Levels for each of the attributes and asked
to eliminate certain levels that they would never ever consider. This is done to take out "hold-
out" levels that respondents feel very strongly about. For example, if someones absolute
maximum price for an airline ticket is $300 they would eliminate all levels above this one.
 Rate the Levels on a 1-10 Scale
This is done in two separate parts. For each Attribute, respondents are asked to select the "Most
Prefered" and the "Least Prefered" option. They are then asked to rate the remaining levels for
the same attribute in a 1-10 scalde.
 Rate the Attribute Upgrades
Respondents are then asked to rate the "Most Valuable Upgrade" given all the attributes. The
Least and the Most Levels are chosen (from the previous section) and displayed along with the
Attributes. This gives us an indication on how important attributes are relative to each other.
 Constant Sum Question
Finally respondents are asked to distribute 100 points across the levels that they have determined
to be most important across all the attributes. This aids in determining the relative importance of
the levels with respect to each other

The inherent problem with this method is thatrespondents inadvertently tend to give higher
ratingsto the levels that have higher value. As a result, atthe initial stage itself this estimation
technique isflawed.Due to the absence of trade off while rating the stimuli, the respondents have
the inclination to rate the attributes and their levels based on what hethinks to be most ideal and
not what gives him thegreatest utility.When the attributes are large it is taxing on the respondent
to rate them or put value to them
objectively.

20. Explain the Process of Conjoint Analysis

Ans:Conjoint analysis is defined as a survey-based advanced market research analysis method that
attempts to understand how people make complex choices. We make choices that require trade-offs every
day — so often that we may not even realize it. Even simple decisions like choosing a laundry detergent
or deciding to book a flight are mental conjoint studies that contain multiple elements that lead us to our
choice.
Conjoint analysis is one of the most effective models in extracting consumer preferences during the
purchasing process. This data is then turned into a quantitative measurement using statistical analysis. It
evaluates products or services in a way no other method can.
How to use conjoint analysis
Conjoint models predict respondent preference. For instance, we could have a conjoint study on laptops.
The laptop can come in three colors (white, silver, and gold), three screen sizes (11”, 13”, and 15”), and
three prices ($200, $400, and $600). This would give 3 x 3 x 3 possible product combinations. In this
example, there are three attributes (color, size, and price) with three levels per attribute.
A set of concepts, or tasks, based on the defined attributes are presented to respondents. Respondents
make choices as to which product they would purchase in real life. It is important to note that there are a
lot of variations of conjoint techniques. QuestionPro’s conjoint analysis software uses choice-based
analysis, which most accurately simulates the purchase process of consumersThere are two main types of
conjoint analysis: Choice-based Conjoint (CBC) Analysis and Adaptive Conjoint Analysis (ACA).

21. What are the components of Product Positioning? Explain any two components.
Product positioning is a form of marketing that presents the benefits of your product to a
particular target audience. Through market research and focus groups, marketers can determine
which audience to target based on favorable responses to the product.
Product positioning has come a long way since Al Ries and Jack Trout popularized the concept
in the 1960s. Regardless, some businesses still use positioning templates to craft their product’s
positioning, and that, in my opinion, is limiting. Because I like to think of successful product
positioning as the right combination of several components. Let’s look at each of them
separately.

Pricing
Price’s effect on product positioning swings in several ways. Luxury products typically cost
more, and many products with extensive features or applications also cost more. In contrast,
some products offer the same or more features than the competition but at lower prices.

For example, most of the top SEO tools start from $99 a month and offer two months for free if
you’re paying for an annual plan. That’s about $990 per year for their basic plan. Enter Link
Assistant’s SEO PowerSuite.“Competitive pricing.” That tells you all you need to know about
the cost of the product. 
The $699 one-year license for its most advanced plan is a far cry from other tools like Ahrefs,
which costs $9,990 a year at the same level.
Product Features
Positioning products by use case is practical in some situations. For example, a company can
have two video-calling applications—one for formal calls and one for informal calls. In this case,
the positioning will be different. Consider this example.
Google Meet is for professional video conferences and video meetings for up to 250 participants.
You can use a free plan depending on your needs, but a paid plan starts from only $10 a month.It
says “premium video meetings.” That’s already an announcement that it is not a free product (it’s
currently free through September 30 because of the pandemic). The product screenshot portrays
a more professional setting than the one used for Google Duo.

22. Write short notes on Product Positioning Map and IMC Mix.
Firms use perceptual or positioning maps to help them develop a market positioning strategy for
their product or service. As the maps are based on the perception of the buyer they are sometimes
called perceptual maps. Positioning maps show where existing products and services are
positioned in the market so that the firm can decide where they would like to place (position)
their product. Firms have two options they can either position their product so that it fills a gap in
the market or if they would like to compete against their competitors they can position it where
existing products have placed their product.

Example Perceptual Map

In the example below two dimensions price and quality have been used. If we plot the UK chocolate
market, we can identify where existing chocolate brands have been positioned by manufacturers. For
example our fictional brand of Belgian chocolates called Belgium Chocolates are high quality and high
price so they are placed in the top right hand box, whilst Twix is an affordable "every day" treat chocolate
so it has been placed in the bottom left hand square, in the low quality low price brand box.
The Purpose of Perceptual Maps
Perceptual maps can help identify where (in the market) an organisation could position a new brand. In
our example this could be at the medium price and medium quality position, as there is a gap there. There
is also a gap in high price low quality but consumers will not want to pay a lot of money for a low quality
product. Similarly the low price high quality box is empty because manufacturers would find it difficult to
make a high quality chocolate for a cheap price or make a profit from selling a high quality product at a
low price.
Integrated marketing communication
Integrated marketing communication is the the process of coordinating all this activity across
different communication methods. Note that a central theme of this definition is persuasion:
persuading people to believe something, to desire something, and/or to do something. Effective
marketing communication is goal directed, and it is aligned with an organization’s marketing
strategy. It aims to deliver a particular message to a specific audience with a targeted purpose of
altering perceptions and/or behavior. Integrated marketing communication (IMC) makes this
marketing activity more efficient and effective because it relies on multiple communication
methods and customer touch points to deliver a consistent message in more ways and in more
compelling ways.

23. Hotstar Charges $3.75 per month, Variable costs are about $0.25 per account per month.
With marketing spending of $2 per year, their attrition is only 0.5% per month. At a monthly
discount rate of 1%. IfHotstar cuts retention spending to $1 from $2, they expect attrition rate to
go up to 1%. Calculate the CLV and justify the feasibility decreasing the retention spending.
24. Explain briefly the relationship between Brand Equity & CLV. Explain the Impacts of CLV.
Therefore, both customer lifetime value and most brand equity valuations are financially based. And as brand
equity resides in the minds of consumers and the firm’s customers and the sum of all customers’ profit
contributions will equal the overall gross profit of the firm – it stands to reason that the two elements are
closely related.

This is demonstrated in the following model below, which identifies that the sum of customer’s purchase
actions essentially determine the customer lifetime value, which is a strong driver of overall profitability, which
will also contribute to the brand equity valuation.
25. Write short notes on Demographic Segmentation & Geographic segmentation. What are the
needs of segmentation.

26. Explain the steps of Market segmentation.

27. What is Exclusive Clustering? What is Overlapping Clustering?

Exclusive clustering: is as the name suggests and stipulates that each data object can only
exist in one cluster.

In this case data are grouped in an exclusive way, so that if a certain data point belongs
to a definite cluster then it could not be included in another cluster. A simple example of
that is shown in the figure below, where the separation of points is achieved by a straight
line on a bi-dimensional plane.
 Overlapping Clustering
Allows data objects to be grouped in 2 ormore clusters.
In overlapping clustering, uses fuzzy sets to cluster data, so that each point may belong to
two or more clusters with different degrees of membership. In this case, data will be
associated to an appropriate membership value.

Example:Breakdown of personnel at a school:

It would allow a student to also be grouped as an employee while exclusive clustering would demand
that the person must choose the one that is more important.

28. What is K-Means Clustering? What is Completeness Clustering?

29. Define Conjoint Analysis, Utility, Part Worth, Additive Model & Interraction Model.
30. Define Pairwise Comparison Method, Self Explicated Model, ACA, Additive Model & CBC.
Ans: Pair wise Comparison Method- Method of presenting a pair ofstimuli to the respondent for
evaluation, with the respondentselecting one of the stimuli as preferred.
 Also known as Trade off Approach as the respondentis forced to make a trade- offs between the
attributelevels.
 Instead of full profiles or partial profiles, trade offmatrices are created considering all the levels
of twoattributes taken at a time.
 Incase of more than two attributes sequential tradeoff matrices are given to be ranked or rated in
anorder such that there is at least one attribute from
 the previous matrix is present.
 In Paired Comparison Tests, the value of the individualattributes come out from the different
ratings its levelsreceive in a paired combination with the other attributes.

Self Explicated Model- Compositional technique where therespondent provides the Part- Worth
estimates directly withoutmaking choices.
 Purists do not consider it to be a conjoint as there isno trade off to be made.
 Compositional techniques as the respondents rate orrank the attributes and their levels.
 Preferable option over traditional conjoint when theattributes and their levels are large.
 Used as a fundamental part of ACA or hybridconjoint.

Adaptive (Hybrid) Conjoint Analysis (ACA)- ACA asksrespondents to evaluate attribute levels
directly, and then to assessthe importance of each attribute, and finally to make paired
comparisons between profile descriptions.
AMP- Adaptive management is a systematic approach for improving resource management by learning
from management outcomes. Its origin can be traced back to ideas of scientific management pioneered by
Frederick Taylor in the early 1900s.
Adaptive management is infrequently implemented, even though many resource planning documents call
for it and numerous resource managers refer to it. It is thought by many that merely by monitoring
activities and occasionally changing them, one is doing adaptive management. Contrary to this commonly
held belief, adaptive management is much more than simply tracking and changing management direction
in the face of failed policies, and, in fact, such a tactic could actually be maladaptive
Additive Model- Assumes that individuals just add up the individual Part- Worths to get to the overall
utility.
Additive model- Overall utility = Sum total of all part-worths
AMP- Adaptive management is a systematic approach for improving resource management by learning
from management outcomes. Its origin can be traced back to ideas of scientific management pioneered by
Frederick Taylor in the early 1900s.
Adaptive management is infrequently implemented, even though many resource planning documents call
for it and numerous resource managers refer to it. It is thought by many that merely by monitoring
activities and occasionally changing them, one is doing adaptive management. Contrary to this commonly
held belief, adaptive management is much more than simply tracking and changing management direction
in the face of failed policies, and, in fact, such a tactic could actually be maladaptive
Choice Based Conjoint (CBC)- An alternative form of conjointanalysis where the respondent’s task is of
choosing a preferredprofile similar to what he would actually buy in the marketplace. CBC
analysis lets the researcher include a "None" option for respondents,which might read "I wouldn't choose
any of these."