Course Title: Product Development & Principles of Marketing

Course Code: BMKT-401

Faculty-Md Belal (Lecturer)
Name- MD Raadh Rahman
ID- UG-11-47-20-009
Date- 29/10/2022
 Lecture 5

1. What is finance? Write down the important feature and draw back of profit
maximization.
Finance: According to Khan and Jain ─ ‘Finance is the art and science of managing
money’.
Profit maximization features
Profit maximization consists of the following important features.
▪ Ultimate aim of the business concern is earning profit hence, it considers all
the possible ways to increase the profitability of the concern.
▪ Profit is the parameter of measuring the efficiency of the business concern.
So, it shows the entire position of the business concern.
▪ Profit maximization objectives help to reduce the risk of the business.

Drawbacks of profit maximization

▪ It is vague: In this objective, profit is not defined precisely or correctly. It
creates some unnecessary opinion regarding earning habits of the business
concern.
▪ It ignores the time value of money: PM does not consider the time value of
money or the net present value of the cash inflow. It leads certain differences
between the actual cash inflow and net present cash flow during a particular
period.
▪ It ignores risk: PM does not consider risk of the business concern. Risks may
be internal or external which will affect the overall operation of the business
concern.

2. Write down the types of finance.

Finance can be classified into two major parts:
 1. Private finance: It includes the individual, firms, business or corporate
financial activities to meet the requirements.
2. Public finance: It concerns with revenue and distribution of government
such as Central government, State government and Semi-government
financial matters.

3. What is financial management?

According to Kuchal, “Financial management deals with procurement of funds
and their effective utilization in the business”.

Lecture 6

1. What is promotion? Briefly describe the ways of promotion.

Promotion: In marketing, promotion refers to any type of marketing
communication used to inform target audiences of the relative merits of a product,
service, brand or issue, most of the time persuasive in nature. The aim of promotion
is to increase brand awareness, create interest, generate sales or create brand
loyalty.
The ways of promotion are described below:
❖ In a physical environment: Promotions can be held in physical environments
at special events such as concerts, festivals, trade shows, and in the field,
such as in grocery or department stores. Interactions in the field allow
immediate purchases. The purchase of a product can be incentive with
discounts (i.e., coupons), free items, or a contest. This method is used to
increase the sales of a given product. Interactions between the brand and
the customer are performed by a brand ambassador or promotional model
who represents the product in physical environments.
❖ Traditional media: Examples of traditional media include print media such
as newspapers and magazines, electronic media such as radio and television,
and outdoor media such as banner or billboard advertisements. Each of
 these platforms provide ways for brands to reach consumers with
advertisements.

❖ Digital media: Digital media, which includes Internet, social networking and
social media sites, is a modern way for brands to interact with consumers as
it releases news, information and advertising from the technological limits of
print and broadcast infrastructures. Digital media is currently the most
effective way for brands to reach their consumers on a daily basis. er.
Facebook, Snapchat, Instagram, Twitter, Pinterest, Tumblr, as well as
alternate audio and media sites like Sound cloud and Mix cloud allow users
to interact and promote music online with little to no cost.
❖ Sponsors: Sponsorship generally involves supplying resources (such as
money) to a group or an event in exchange for advertising or publicity.
Company will often help fund athletes, teams, or events in exchange for
having their logo prominently visible.

2. Write down the functions of promotion?

The most important promotion functions are:
i. creating an image of prestige, low prices, innovation,
ii. information about the product and its characteristics,
iii. preservation of the popularity of goods (services),
iv. change the way you use the product,
v. the creation of enthusiasm among market participants,
vi. convince buyers to move to more expensive goods,
vii. answers to consumer questions,
viii. favorable information about the company.

Lecture 7

1. Definition and objectives of price regulations.

Price regulation: Price regulation refers to the policy of setting prices by a
government agency, legal statute or regulatory authority. Under this policy,
minimum and/or maximum prices may be set.

Objectives of price regulation

Equity or distributive justice- price control measures aim to protect the citizens of
a country by shielding them steep inflation and abnormal price functions.
▪ For maintaining quality of goods and services.
▪ For preventing monopolistic, restrictive & unfair trade practices.
▪ To ensure that commodities are available at fair prices
▪ To ensure smooth supply of resources.
▪ To curb black markets
▪ To control inflation.

2. Define distributor. What is E-distribution? Write down the types of

distribution.
Distributor: A distributor is defined as someone who purchases products, stores
them, and then sells them through a distribution channel. They are in between
manufacturers and retailers or consumers, working on behalf of a particular
company as opposed to representing themselves.
E-distribution: E-distribution is the electronic product distribution of things like
software and digital downloads. Such items include video games, computer
software, movies, music, and e-books.

Types of Product Distribution

The types of product distribution are given below:

▪ Intensive Distribution: This strategy targets as many channels and outlets as
possible. The goal of intensive distribution is to penetrate as much of the
market as possible. You want to be everywhere you can.
▪ Selective Distribution: This strategy is selective, only focusing on specific
channels and outlets. There’s going to be specific locations you want to be at
with this method. This is often based on a particular good and its fit within a
store.
▪ Exclusive Distribution: This strategy focuses on limiting the channels and
outlets you use. Very selective. The first example for this particular method
is luxury brands, perhaps a special collection of some type where it’s only
available at specific locations or stores. Examples of companies that use
exclusive distribution would be high-end designers like Chanel or even an
automotive company like Ferrari.