IBS Bangalore

Marketing Management: Sec. C

Assignment- Back to Basics

Course code: SLMM501

Semester: I Batch of 2022

CEC-1 Component (10 marks: Assignment+ Viva Voce)
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Write definition/Meaning of following terms with suitable example.

1) Marketing Management – It is the process of satisfying the needs and wants of the
customers of the organization. In a more elaborate definition, it is the management of the
marketing activities, which include the management of the processes of planning,
organizing, directing, motivating, coordinating, and controlling.

2) Needs and Wants – Needs are the basic requirements of human beings for survival and
wants are something which a human being demands when all their needs are fulfilled and
they have enough money to spend. For example, if a person is very thirsty, a bottle of
water can fulfill their needs, but they want a bottle of Coke to fulfill his demand can be
termed as wants.

3) Customer Satisfaction – When a person’s demands are fulfilled by either meeting or

surpassing their expectations either by goods or services provided by a company.
Customer attain a satisfaction and will always ask for more until they feel they can still
utilize the product.

4) Marketing Philosophies (Production, Product, Selling, Marketing & Societal

marketing)

 Production – When raw materials are converted in a product which can satisfy the
needs and wants of consumer is termed as production.

 Product – Product is something which is offered in a market which could satisfy the
needs or wants of a person.

 Selling – The process of transferring the ownership of a product to someone else in

return of money or something of same value.
  Marketing – the management processes through which a goods and services move
from concept to the customer.

 Societal Marketing – This concept is also known as sustainable marketing. Societal

marketing states that the company should make marketing decisions not only by
considering the customer wants and company’s profits but also the society around and
its long term interests.

5) Business Markets Vs Consumer Markets – Business Markets is also known as B to B

markets where a company sells their product or services to other business and they have a
specific group of customer. Consumer Markets is also known as B to C markets where
the product or service is sold to end customers to be consumed finally. Consumer
Markets are generally very vast compared to business markets as there are a larger
customer base and the demand is usually very high.

6) Green Marketing – Green marketing is a concept under societal marketing or

sustainable marketing. As the name suggest, green marketing is a concept in which
companies have to manufacture goods or services without harming the environment in
any way. By implementing sustainable ways of productions and distribution of goods and
services is called green marketing.

7) Competitive Advantage Vs Core Competence – Competitive advantage is something

that is way better than your competitors, which gives you an edge over them. Core
Competence is a broader concept which is a combination of multiple resources and skills
that differentiates a company from its rivals and competitive advantage could be one of
its aspects.

8) Micro and Macro Environment – Micro Environment are the factors which are closer
to the company and can affect its ability to satisfy the needs of a customer directly. For
example, its suppliers, competitors, company itself, etc. Macro Environment are those
external factors not directly in the controls of the company and can affect the business of
the company. For example, economic, government rules and regulations, environmental,
etc.

9) Environmental Analysis / Diagnosis – Environmental Analysis is a strategic tool, which

is a process to identify all the internal and external factors that can affect the
organization’s performance.

10) PESTLE Analysis – PESTLE is a short form of Political, Economic, Social,

Technological, Legal and Environmental factors that can effect of the performance of the
organization.

- Political Factors – Government policies, Taxes and Laws, Stability of Government

 - Economic Factors – Inflation Rate, Unemployment Rates, Foreign Exchange Rate

- Social Factors – Cultural Implications, Gender, Educational.

- Technological Factors – New Inventions, Rate of technological Advances,

Innovation on surface level.

- Legal Factors – Product Regulations, Government Policies, Faster Legal Procedures.

- Environmental Factors – Geographical Location, Climate and Weather, Favorable

Living Conditions.

11) Marketing Mix or Marketing Stimuli or 4Ps of Marketing – Marketing Mix refers to
the set of actions a company uses to promote their product or service to the customers
effectively and efficiently. The 4P’s of marketing usually make up the marketing mix.

- Product – is the nucleus of marketing, a product is something which satisfy the needs
the customer’s needs and wants.

- Price – Price is the value that the company asks in exchange for its product.

- Place – The distribution channel used to deliver the product and the place where these
products are sold.

- Promotion – Total marketing communications comes under promotion. These tools

are also known as promotion mix.

12) Product - is the nucleus of marketing, a product is something which satisfy the needs the
customer’s needs and wants.

13) Goods Vs Services (difference) – The main difference between goods and service is that
goods are tangible, and services are intangible. Goods are physical products which can be
touched and felt. Services are also products which can only be felt.

14) Marketing Mix (4Ps of Marketing/ Marketing Stimuli) – Explained in question 11.

15) Promotion Mix – contains advertisements, sales promotions, personal selling, public
relations and publicity.

- Advertisement – Non personal commutations through which a company

communicates to its customers and potential customers about their product and its
uses.

- Personal Selling – Interpersonal Promotional process through which company

representatives personally communicates to its customers and inform about their
product to encourage sales.
 - Sales Promotions – By giving sales discounts and offers to its customers and also to
attract new customers to increase sales in a short term period.

- Direct Marketing – When companies directly sell their products to its consumers to
avoid middlemen and increasing price of their products and to give them better
services.

- Public Relations – is the process through which companies promotes customer

satisfactions and loyalty by directly communicating with them through proper
feedback channels and solving their problems.

16) Integrated Marketing Communication (IMC) – can be defined as the process used to
unify marketing communications elements, such as public relations, social media, print
media and advertisement into a brand message which customer can relate to and feel
connected.

17) Advertising – is a non-personal commutations through which a company communicates

to its customers and potential customers about their product and its uses.

18) Sales Promotion - By giving sales discounts and offers to its customers and also to
attract new customers to increase sales in a short term period.

19) Public Relations - is the process through which companies promotes customer
satisfactions and loyalty by directly communicating with them through proper feedback
channels and solving their problems.

20) Publicity – is an unpaid form of promotion, which can be both good and bad for a
company as a bad rumor can reach many consumer very quickly and the company has no
control over it.

21) Celebrity endorsement – When a celebrity is paid to do promotions of a company

through advertisement, which is proved to be very effective.

22) Product placement – When a product is placed in a movie or series, which is

deliberately put there to be promoted. This kind of advertisement is very subtle and can
be very effective.

23) Sponsorship – when a company financially or in-kind support an event or a person or a

charity with the objective of promoting its brand name through a kind gesture. This
process creates an emotional connect with the brand and this technique is becoming
increasingly popular.

24) Merchandise promotion – are products which are branded with the company’s logos
and slogan and is often distributed free or at no cost to market the products and increase
sales.
25) Retailing – is the process of selling consumer goods or service to customers through
multiple channels of distribution to earn profits.

26) Point of Purchase Promotion (POP Promotion) – are very specialized form of sales
promotion near a sales counter, and usually contains new products, promotional offers,
etc.

27) Market Segmentation – is the process of dividing existing and potential customers into
sub groups of consumers as segments.

28) Market Targeting – is the process of selecting target market where company could sell
their products to the customers which need it the most and can satisfy their wants. This
process increase the sales number of an organization just by selecting the best market.

29) Brand Positioning and Repositioning – refers to a situation when the product or the
brand name of a company is etched in the minds of customers or potential customers and
they can distinguish its products from the competition. Brand Repositioning is something
a company does when it wants to change the perception of customer towards their brand.

30) Market Nicher – are the companies who make very specific products or services which
can satisfy very specific needs of a consumer. These products are highly customized and
often made according to the needs of the customer by directly taking feedbacks from
them.

31) USP (Unique Selling Proposition) – USP is a feature of a product or service which is
very unique and differentiates them from the competition. For Example, Tesla and many
other companies makes electric vehicles but the USP of Tesla is that their cars are self-
driven and they implemented that technology in the best way possible to differentiate
from their competitors.

32) Baby Boomers – Any products can be marketed to one of the three major generational
segments. Baby boomers are the newer generation consumers which are usually targeted
through social media, emails, twitter, basically through smartphones. ( that’s what I
understood)

33) Generation X and Gen. Y

34) Demographic/ Psychographic/ Geographic Segmentation – Companies divide their

consumers on the basis of these three groups to better understand their needs and wants
and deliver a product or service which could best suit their need.

- Demographic means on the basis of structure of population.

- Psychographic means divide groups on the basis of their psychological traits that
influence their needs and wants.
 - Geographic is dividing their market on the basis of geography such as areas, cities,
countries, continents.

35) Corporate Social Responsibility – is a type of self-regulation which companies follows

that aims to contribute to societal goals of charity, activism, support to discriminated
people.

36) Disruptive Technologies – These technological advances totally disrupt the markets of
existing products which are threatened by its invention or can become obsolete. For
Example, Kodak used to produce camera reels which were highly demanded all over the
works but after the invention of digital storage of photos, the market for camera reels
were disrupted.

37) Customer Relationship Management – is a business strategy that aims to understand,

anticipate and manage the needs of an organization current and potential customers.

38) Customer Experience Management (CEM) – is the study of understanding the

customers and deploying strategic planning than enables customer centric culture in an
organization which improve satisfaction and loyalty of the customer towards their brand.

39) Licensing and Franchising – Licensing means when a company gives another company
a legal permission to manufacture its product or provide its services for a specific amount
of money as a payment.

Franchising is a situation when a company allows as a license to other company to use

its brand name but the relationship is not limited to permitting license but the processes
of business are also controlled by the parent company in case of franchising.

40) Consumer Behavior – is a study of behavior pattern of consumers i.e. how they select,
buys, or use the goods or services to satisfy their needs and the study is then used to
manufacture the products according to the study.

41) Diffusion of Innovation – When a new innovation is done and a new product is
introduced in the market and the process of its diffusion and its spread into the markets.
Then, the new product is accepted in the market and how the consumer adopts this
product is the process of diffusion of Innovation.

42) Buyer Adoption Process – When a buyer goes through various mental processes before
buying the product to eventually buying it is known as buyer adoption process. There are
total 5 stages under this process, Product Awareness, Product Interest, Product
Evaluation, Product Trial and Product Adoption.

43) Perceptual Mapping – is a visual representation of the perception of the customer or

potential customer towards the organization.
44) Marketing Information system – is a management information system designed to
gather, store, analyze, and distributed to managers in form of structured data to help them
in crucial marketing decisions.

45) Marketing Intelligence – is the type of data which is gathered on a daily basis but only
the informative and relevant data is stored and used for marketing strategies,

46) Impulse Goods Vs unsought goods – Impulse goods are the type of goods that people
buy without any forethought and planning, they buy it on impulse as opposed to essential
goods.

Unsought goods are a type of goods that consumer does not know about or doesn’t plan
to buy it normally. These purchases arises due to danger or fear of danger. For Example,
funeral services, fire extinguishers,

47) Product Line Extension – is the use of an established brand name for a new product that
the same company launched. This occurs when a company introduces additional products
which are in the same category under the same brand.

48) Product Line Stretching Decision – This is the decision of product line extension, when
companies decides to use its brand name to launch new product under the same category.

49) Market Skimming Price Vs Market Penetration Price – Market Skimming Price is a
pricing strategy in which the product is launched at a higher price to attract the customers
which a desire to buy it and then eventually reduces the price to attract subsequent buyers
who could not afford it at the introductory price but have strong desire towards it.

Market Penetration Price is also a pricing strategy to attract very high number of
customers as the initial pricing of the product is kept very low from the competition. This
gives an advantage to the company to penetrate market with just low prices for their
product.

50) Psychological Pricing – is also a pricing strategy based on a theory that the pricing of a
product have certain psychological effects on the buyers. For Example, a 1000$ mobile
phone is not that attractive to customers, but is the company price it at 998$ then many
customers have psychological effects and are attracted to the product.

51) Price Point – These are the prices at which a demand for a certain product is relatively
very high but a slight change in pricing from that point can affect the demand for the
product.

52) Predatory Pricing – This is a marketing strategy when a company reduces the prices of
the product to a loss-making point to eliminate the competition. Large Scale Company
usually does that to eliminate local competition.
53) Price Dumping – This strategy is used by MNC’s entering new markets where they price
their products that is lower than the domestic markets where the product was sold
originally.

54) Prestige Pricing Vs break even pricing – Prestige Pricing is a pricing strategy where
the manufacturers price their products at a higher level so that the buyers associates the
higher price for its prestige and superior quality.

Break Even Pricing is a pricing strategy where companies price their product so low that
they don’t make profits. This strategy was adopted by ONEPLUS when they launched
their first phone in the market and the company also told its customer that they are not
even making profits by selling the phone.

55) Price Quality Strategy - The aim is to help companies position their products or services
relative to competitors as perceived by the market, and consider their pricing strategy
accordingly. The new company mimics the pricing strategy of other manufacturers and
price their products closer to them in order to survive in the market.

56) Cost based pricing and competition-based pricing – Cost based pricing is the practice
of setting the prices of goods and services on the cost of their products and is very similar
to break even pricing.

Competition based pricing is the strategy of mimicking the competition’s pricing. In

order to survive in the market, they have to price their products equal or lower from the
competition.

57) Optional product pricing Vs Captive product pricing - Optional product pricing is
when a company sells a base product at a relatively low price, but sells complementary
accessories at a higher price, for example, IPhone is relatively cheap in the US but the
accessories sold by Apple is very expensive like now they don’t provide a fast charger
with the phone and customer have to pay higher prices to get them from Apple.

Captive Product pricing is a pricing strategy that takes advantage of a product that will be
used primarily to attract a large volume of customers.

58) Social Marketing and Cause Related Marketing – Social Marketing is the use of
commercial marketing principles and techniques to improve the welfare of people and the
physical, social and economic environment in which they live. It is a carefully planned,
long-term approach to changing human behavior.

Cause Related Marketing is marketing done by a profit making business that wants to
increase their profits and betterment of society in accordance with corporate social
responsibility.
59) Services Marketing - Services marketing typically refers to both business to consumer
(B2C) and business-to-business (B2B) services, and includes marketing of services like
communications services, tourism services, entertainment services and many more.

60) Characteristics of services – There are several characteristics of Services:-

 Lack of Ownership

 Intangible

 Inseparability

 Perishability

61) 7Ps of Services Marketing – The seven Ps of services marketing are:

- Product

- Price

- Promotion

- Place

- People

- Process

- Physical Evidence

62) SerQual Dimensions (Service Quality Dimensions). - Service quality can be measured
using five dimensions:-

 Tangibility

 Reliability

 Assurance

 Responsiveness

 Empathy

63) Internal, External and Interactive Marketing – Internal Marketing is the promotion
of company’s objectives, products & services to employees within the organization.

External Marketing is the relationship between the company and its customers and all
the promotion of company’s objectives, products & services are directed towards them.
 Interactive Marketing is a marketing strategy that uses two-way communication
channels to allow consumers to connect with a company directly.

64) Distribution Channel – It’s a channel through which the goods and services that a
company is offering to its customers reach them.

65) Supply Chain Management - Supply chain management is the handling of the entire
production flow of a good or service, starting from the raw components all the way to
delivering the final product to the consumer.

66) Brand – Brand can be a name, logo, slogan or anything through which a customer can
relate the product to its manufacturer. For Example, just be seeing the logo of Nike, a
customer can relate to its brand and its value.

67) Brand Equity – The value of a brand which earns more customers just by its brand
value. The owner of a well-known brand name can generate more revenue simply from
brand recognition, as consumers perceive the products of well-known brands as better
than those of lesser-known brands.

68) AIDA Model - The stages that an individual goes through during the process of
purchasing a product. These stages include:

 Attention

 Interest

 Desire

 Action

69) New Product Development Stages – There are 5 stages in a new product development
cycle:

1. Idea Generation

2. Screening

3. Concept Development

4. Product Development

5. Product Launch

70) Product Life Cycle – is the amount of time a product goes from being introduced as a
new product into the markets to the time it’s taken off the shelves and no more sold
 anywhere. For Example, the life cycle of a mobile phone these days are reduced and
came down to just 8-12 months.

71) Specialty stores - A specialty store is a shop/store that carries a deep assortment of
brands, styles, or models within a relatively narrow category of goods.

72) Personal selling – When the representatives of the company directly involved in the
selling if its product personally to its customers and potential customers is known as
personal selling.

73) Sales Force Management - It is the development of a sales force that includes
coordination of sales operations, as well as the training and application of sales methods
that result in achieving sales goals and objectives.

74) Price – Price is the value that a company asks from its customers in the exchange for its
product.

75) Data base Marketing - Database marketing is a form of direct marketing using
databases of customers or potential customers to generate personalized communications
in order to promote a product or service for marketing purposes.

76) Cross selling - is the action or practice of selling an additional product or service to an
existing customer. For Example, Apple does cross selling by selling its customers air
pods which are very much customized to be used with IPhones.

77) Services quality Dimension - Service quality can be measured using five dimensions:-

 Tangibility

 Reliability

 Assurance

 Responsiveness

 Empathy

78) Value Proposition - A value proposition refers to the value a company promises to
deliver to customers when they choose to buy their product. The amount of value they are
exchanging for the price is their value proposition.

79) EDLP (Every Day Low Price) - A policy or strategy of retail pricing whereby
presumably low prices are set initially on items and maintained, as opposed to the
occasional offering of items at special or reduced sales prices.
80) Bench Marking - Benchmarking is a process of measuring the performance of a
company's products, services, or processes against those of another business considered
to be the best in the industry.

81) Customer Life Time Value – The present value of Net-profits will be generated from a
customer in the future of their entire relationship with the company.

82) Marketing Audit - A marketing audit is a comprehensive examination and analysis of

marketing activities, goals and objectives.

83) Marketing Myopia – When the company focuses on fulfilling the short term gains for
their own rather than focusing on fulfilling consumers satisfaction and focusing on long
term goals.

84) Maslow’s Hierarchy of Needs - The theory states that humans are motivated to fulfill
their needs in a hierarchical order. First they will fulfill their basic needs, then their safety
needs like shelter, their love and belongingness needs, then their esteem needs like
prestige and accomplishment and at last their self-fulfillment needs.

85) Specialty Store - A specialty store is a shop/store that carries a deep assortment of
brands, styles, or models within a relatively narrow category of goods.

86) Reference Group - Reference Group is a group that serves as a reference point for an
individual in the formation of their beliefs, attitudes and behavior.

87) SBU (Strategic Business Unit) - a strategic business unit is a profit center which focuses
on product offering and market segment happens, analysis of competition, market
campaigns, etc.

88) BCG Matrix - The Boston Consulting group's product portfolio matrix (BCG matrix) is
designed to help with long-term strategic planning, to help a business consider growth
opportunities by reviewing its portfolio of products to decide where to invest, to
discontinue or develop products.

89) Product Market Expansion Grid (Ansoff’s Matrix) - is a tool used by firms to analyze
and plan their strategies for growth. The matrix shows four strategies that can be used to
help a firm grow and also analyzes the risk associated with each strategy.

 Market Penetration

 Product Development

 Market Development

 Diversification
90) Holistic Marketing – is a marketing strategy that considers the whole of a business not
just on their products or profits or any other specific marketing strategy.

91) Direct Marketing – When a company directly sells the product to its customers whether
through the internet or physical stores is known as direct marketing.

NOTE: Hand written in A4 size papers or Note book. Write

extensively and neatly, which I will return after correct for VIVA
Voce (Personal interview).

Last Date for submission on or before 18th June 2021,

before 5pm.

Delay in submission of assignment would lead to deduction of

5marks/day.

Addition of any new concepts to the above assignments will be

rewarded.

Reference Text book: Principles of Marketing by Kotler and Gary

arm strong- 6th to latest edition Pub. PTI