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Shrichakradhar.com 9958947060

ASSIGNMENT SOLUTIONS GUIDE (2021)

MTTM-6: MARKETING FOR TOURISM MANAGERS
Disclaimer/Special Note: These are just the sample of the Answers/Solutions to some of the Questions

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given in the Assignments. These Sample Answers/Solutions are prepared by Private
Teacher/Tutors/Authors for the help and guidance of the student to get an idea of how he/she can answer
the Questions given the Assignments. We do not claim 100% accuracy of these sample answers as these

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are based on the knowledge and capability of Private Teacher/Tutor. Sample answers may be seen as the
Guide/Help for the reference to prepare the answers of the Questions given in the assignment. As these
solutions and answers are prepared by the private teacher/tutor so the chances of error or mistake cannot
be denied. Any Omission or Error is highly regretted though every care has been taken while preparing

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these Sample Answers/Solutions. Please consult your own Teacher/Tutor before you prepare a Particular

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Answer and for up-to-date and exact information, data and solution. Student should must read and refer
the official study material provided by the university.

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Q1. Discuss the relevance of social marketing in modern society. Substantiate your answer with
suitable examples.
Ans. Before we discuss the role of social marketing we should understand what social marketing
signifies. Too often, social advertising as practised by social campaigners is confused with social
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marketing. What is at fault, to a large extent, is the tendency of social campaigners to assign advertising
the primary, if not the exclusive, role in accomplishing their social objectives. As' explained in Unit 1, a
given marketing objective requires the coordination of the promotional mix with the product (ideas,
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goods and services) mix and the distribution mix.

Kotler and Zaltman have defined social marketing as the design, implementation and control of
programmes calculated to influence the acceptability of social ideas and involving consideration of
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product planning, pricing, communication, distribution and marketing research.

To understand the social marketing fully it would be best to examine the applicability of the 4Ps of the
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marketing mix in terms of some well-known social issues.

Product: You will remember the first stands for Product. Also remember that the word product is used in
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a broad sense, that is, it includes ideas, goods and services. In social marketing as in the case of marketing
of other products, sellers have to study the target audiences and design appropriate products. But
product design is more challenging in the social area than it is in the business area.
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Promotion: We next take up promotion as an element in the social marketing mix. It is promotion i.e.
persuasive communication that will make the social goals familiar, acceptable and even desirable to the
audience. The social campaigning strategist will tend to think of promotion as mass media
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communication only. But you will remind the marketing man that promotion is actually a much larger
idea and includes besides advertising, personal selling, publicity and sales promotion. Each of these
promotional tools involves complex issues in strategy and tactics and needs sophisticated knowledge and
techniques in handling them effectively,
This is especially apparent when one examines social campaigns developed by amateurs, where the
appeals and copy seem very naive. This is because of their inability or reluctance to view the issue in
broad marketing terms instead of in strictly social or ethical terms.
Place: We will now examine the role of the third element of the marketing mix in social campaigns. It
calls for providing accessible outlets, which permit the translation of motivations into actions, i.e., the

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motivated persons should know where the product can be obtained. Planning this area entails selecting
or developing appropriate outlets, deciding on their number, average size, locations, and giving them
proper motivation to perform their part of the job.
It is all right that you have succeeded so far as making people aware of environmental pollution and the
risks arising from it are concerned. But remember you cannot arouse the interest of the people and leave
them there. People want to do something about it. But for the most part they cannot act because there is

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no specific `product' to buy, such as
• a petition to signn
• election in which to choose an anti-pollution candidate
• or a pending piece of national legislation

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Price: The final element of the marketing mix that must be planned is price. Price represents the costs that
the buyer must accept in order to obtain the product. It involves money costs but also opportunity costs,
energy costs, and psychic costs.
What types of cost are required to be borne by:

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• persons who are asked to take immunization shots

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• Persons who are persuaded to give up smoking

Q2. What do you understand by the term “Marketing Mix”? Discuss the role and importance of
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Marketing Mix in the Tourism Industry.
Ans. Marketing is performed within a certain environment which itself is always changing. The
marketing activities have, therefore, to change in consonance with environment to be continuously
effective. In order to appreciate this process it is easier to divide the marketing activities into four basic
elements, which are together referred to as the marketing mix. These four basic elements are:
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• Product,
• Place Price,
• Promotion, and
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• Place (or physical distribution).

As all these four start with the letter `P' they are, at times, referred to as the four Ps of the marketing mix
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or the 4Ps in marketing.

The word product stands for the goods or services offered by the organisation: Once the needs are
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identified, it is necessary to plan the product and after that keep on analysing whether the product still
satisfies the needs which were originally planned for, and if not, to determine the necessary changes. You
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will learn this in greater detail when we talk about product strategies, about how new products are
introduced, how they have to be modified in due course to continue to be successful in sales and why
marginal or non-profitable products should be removed, unless they are contributing in some way to the
overall benefit of the organisation.
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Price refers to the money value that the customer has to pay. The product has to be adequately priced.
This involves considerations of the profit margin, the cost, the possibility of sales at different prices and
the concept of the right price.
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Promotion is the aspect of selling and advertising, or communicating the benefits of the product or
service, to the target customers or the market segment involved in order to persuade them to purchase
such products or services.
It includes selling through advertising as well as the sales force. Besides, a certain amount of promotion is
done through special seasonal discounts, competitions, special price reductions, etc. collectively called
sales promotion.
Finally, physical distribution refers to the aspect of the channels of distribution through which the
product has to move before it reaches the consumer. It also includes the logistics aspects of distribution
such as warehousing, transportation, etc. needed for geographical distribution of the products.

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It is also concerned with the selection of distribution channels. The organisation must decide whether it
should sell through wholesalers (who buy in large quantities and sell to retailers) and then to retailers
(i.e., the shopkeepers, who ultimately sell to consumers), or whether directly to the consumers. There are
many ways in which a product can be moved from the producer to the consumer. The optimum method
has to be determined in terms of both consumer satisfaction and profitability to the organisation, or
optimum use of the organisation's resources.
The role and importance of Marketing Mix in the Tourism Industry

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The role of the marketing mix in tourism is to bring the customers or tourists to the destination, product
or service that the tourism company wishes to sell. The four parts of the marketing mix in tourism
include the product, pricing, promotion and place or distribution.

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The product role of the marketing mix in tourism is to make the tourists aware of what the company is
trying to market or promote. The product for tourism may be a bus tour, a hotel stay or a cruise. The
product or service is one that is especially targeted to the tourist market, but can range from a tangible
product, such as a souvenir to an intangible product, such as a bus tour of the city.

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Pricing is another major aspect of the role of marketing mix in tourism. Pricing has to be set so that any

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competitors that are offering the same business or substitute business is comparable. In other words, if
the tourist activity is kite sailing and there are two other kite sailing companies in the area, the company
that is opening a new kite sailing company needs to see what their competition is charging.
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Promotion is the role of the marketing mix in tourism. It encompasses all of the ways that the company
markets and advertises the business. This may include typical types of marketing, such as placing ads in
tourist magazines and offering discount coupons in travel guides. It may also include going from hotel to
hotel in the area and leaving a postcard or flier for the service at each hotel room door.
In tourism, it is also beneficial to create joint ventures with other tourism businesses. For example, going
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back to the kite sailing company, it is wise to visit and speak with the concierge at each hotel. The
concierge is the person that tourists tend to go to find out what to do in the area. Establishing a
relationship with the concierge and stocking them with marketing materials can really boost the business.
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Place is the role of the marketing mix on how the product or the service is connected with the client,
customer or tourist. If it is a tourist product, then this portion of the marketing mix entails distributing
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the product to store retailer shelves or other ways of getting it to paying tourists. When it is a tourism
service, it typically entails drawing the tourists to where the service is.
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Q3. Define Market Segmentation. Discuss in detail the basis of market segmentation and its
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application in the Tourism Industry with examples.

Ans. Market segmentation may be defined as the division of a market into groups of segments having
similar wants. But wants must be interpreted very broadly, in terms far broader than product
characteristics only. Segments may differ also in their needs for information, reassurance, technical
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support, service, promotion, distribution, and a host of other `non-product' benefits that are part of their
purchase. They may also differ in their capacity to pay for these differences.
Economists view a product as differentiated if it is preferred by some buyers to similarly priced rival
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brands on the ground of differences in the following:

• physical aspects of the product
• services offered
• convenience in using or buying the product
• image projected.
If you analyse the above view put forward by economists you will reach the conclusion that all
segmentation except segmentation involving price alone entails differentiation.
But it does not mean that the two are the same. For segmentation involves more than what is achieved
through product differentiation. In market segmentation the aim is not merely to divide the market into

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sub-classes based on product differentiation but to distinguish want-categories that correspond to the
distinct demands of various groups in the market
The basis of market segmentation
After you have gathered comprehensive knowledge about what they want and who is in the market, you
have to tackle another important criteria for grouping the buyers into segments
For this we might take the following approach:

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• listening to what those in the market say, for example, about their preferences;
• studying what those in the market are-for example, their demographic characteristics;
• studying what those in the market do-for example, their life style.
The different bases for segmentation put different emphases on what people in the market SAY, ARE, or

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DO.
Benefit segmentation
In benefit segmentation you segment the market on the basis of what people say or the benefits they seek
from the product.

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Yankelovich applied benefits segmentation to the purchase of watches. He found that buyers bought for

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lowest price (23%), durability and general product quality (46%), and as symbols of some important
occasion (31%).
One of the most successful benefit segmentations was reported by Russell Haley who coined the phrase
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benefit segmentation. According to him the oral hygiene (toothpaste) market can be divided into four
distinct benefit segments depending on which of the following is sought:
• flavour and product appearance
• brightness of teeth
• decay prevention
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• low price
Once we have categorised those in the market on the basis of the benefits they seek, they can be identified
by what they are (demographic characteristics) and what they do (behaviouristic and psychographic
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characteristics). For example, in the Russell Haley study the brightness of teeth seekers were young
people in their teens with a personality disposed towards high sociability and an active life style.
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Similarly, decay prevention seekers had large families, were heavy toothpaste users, and were
conservative. Each segment also favoured certain brands. Thus, benefit segmentation requires:
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• determining the major benefits that people look for in the product class., like intrinsic preference,
for example, taste, level of performance, snob appeal, price, reputation etc.
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• the kinds of people who look for each benefit, and

• the major brands that deliver each benefit.
Market segmentation application in the Tourism Industry
a) Heritage tourism: This is the segment of tourist who like to go to see the heritage sites like Caves,
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Temples, Forts, Palaces etc. This segment are inclined towards acknowledging the history ,art
architecture etc. of the site
b) Religious tourism: This is the segment of tourist who visit the sacred places of their faith like
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temples, mosque, dargas, Gurudwaras, Buddhist Viharas, Churches and cathedrals, Synagogue
etc.
c) Farm tourism: In this type of tourism people travel to rural areas and stay at farmhouses to feel
the nature and rural lifestyle. They also travel to places to acknowledge high technology in
farming.
d) Rural tourism: It is experiential tourism which include travel to rural areas to experience the
village life
e) Ecotourism: In this type of tourism people travel to natural areas to acknowledge themselves
with the environment and participate in the conservation of nature and regional economy. It can

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be subdivided into travelling of people to Caves, lakes, beaches, forest, hill stations, national
parks, bird sanctuaries etc.
f) Voluntary tourism: Here, tourist participate actively with the locals to contribute meaningfully to
host the area. It may be in the form of skill building on hygiene, English language, crafts, energy
and water conservation, and so on.
g) Health and medical tourism: Health tourism is a wider term for travel that focuses on medical

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treatments and the use of healthcare services. Medical tourism refers to people traveling abroad
to obtain medical treatment.
h) Creative tourism: This is a tourism which offers visitors the opportunity to develop their creative
potential through active participation in the courses and learning experiences which are

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characteristic of the holiday destination where they are undertaken. It can be subdivided into the
learning of a unique heritage o f a particular country or region .For example Cooking food in
Thailand, Learning music in India, Learning Art in France etc.
i) Food tourism: People travel to places having food heritage. It can be future sub segmented into

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People traveling for food festivals, Ethnic food, food related to healing of body etc.

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Q4. Explain with the help of suitable examples the significance of demand forecasting while
marketing a tourism product.
Ans.
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The methods used for tourism forecasting can be similar to methods used for forecasting of other
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products, but they have to be applied to suit the industry set - up. They can be as follows:
• Surveys,
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• Time-series,
• Correlation,
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• Market tests,
• Judgement based on experience.
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a) Survey can be conducted by Government organizations, or small private firms. These are very helpful
in finding out the preferences of tourist and their impressions about various tourism services.
The DOT carries out surveys through a team at departure lounges of international airports where tourists
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haye already finished the visit to the country and have time to answer questions of surveyors.
The airlines and hotels continuously take a feed back from customers to understand their opinions which
can be helpful in product design.
Various surveys can be conducted for customers, sales force and experts to predict the requirement of
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quantity and quality of a product.

b) Time-series: By using historical data and sorting it on time basis, highs and lows of seasons can be
better understood, especially tourism industry which is highly seasonal can benefit from such details. To
promote sales figures in low season and prepare for onslaught of tourists in high season this is necessary.
c) Correlation: This method can help in linking the tourist flows to certain variable factors such as per-
capita incomes etc. This is also vital in working out the marketing plan and mix of product, price, place of
distribution and promotion.

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d) Market tests are conducted to understand demand in the market and the products of competitors. This
can give definite clues of product design, pricing etc.
e) A very common method which is used regularly is using judgement based on prior experience of
senior executives or senior planners.
Tourism industry is a multi facet industry which besides the destination has three main sectors:
Transport, Accommodation and Intermediary services. Tourism "Products" are directly dependent on the

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overall turnover of tourism industry which in turn depends on and its Products number of tourists and
the money they spend. Also though these sectors of the industry are offering different products, they are
closely interdependent on each other to run the business smoothly
For example, if travel agents and tour operators do the promotion, tourists are drawn to the destination,

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who will use the transport services and then accommodation and local services. So the promotion will
benefit not only travel agents or tour operators but also transport and accommodation sector. If a
destination does not have good transport services then the accommodation sector at the destination may
not get sufficient business and vice-a-versa. Apart from interdependence of these main sectors on each

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other there are numerous other complex reasons which affect the trends in tourism industry. But mainly

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for marketing forecasting is required to work out the Product Design and to understand the de'mand for
that particular product. In fact forecasting is a vital component in the decision making process for
planning, organizing or marketing of tourism products and services.
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For example if an airline is starting its services on a new sector it will want to know the tEaffic operating
on that sector and the type of traffic. Then only they can plan the frequency and quality of their services.
Similarly for a hotel, the number and type of customers will be necessary to work out the product offers.
Thus, for tourism industry the important factors are number of travellers and type of travellers. You
ought to know that at any given time in future what volume of tourists you expect and to how much you
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can cater. Once this overall scenario is predicted, then the individual organizations can work out their
own marketing mix of 'Praduct, Price, Promotion and Place and compete with each other for market
share. Hence forecasting is needed to plan, develop and operate tourism facilities and services. Other
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advantages of forecasting are that it can help:

• minimire the risk of over supply,
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• in optimum utilization of available resources,

• maximize tourism demand, and
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• regulate the influx of tourists - according to the wrying capacity.

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Q5. Differentiate between the following (any two) :

(i) Product Line and Product Mix
Ans. Product Line: It is a part of the product strategy to determine whether an organisation will have a
single product or more than one product. A 'Product Line is an expression used to describe a group of
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closely related products. Examples of these would include the Usha line of fans or the Lakme line of
cosmetics.
In case of product line, very often a product manager or a product line manager is appointed to look after
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a particular product line. Generally, he tries to enlarge his product line because he wants a higher market
share, or growth in volume of sales resulting in more profit. The latter aspect must always be
remembered,, and the product line manager should be willing to eliminate any product which is found to
be unprofitable, or nor required to complete the line of products offered.
Product line decisions have to be taken about how long or short the line should be. The basic
considerations being the capacity of the organisation in terms of availability of. production facilities,
finance, etc. and the profitability of the items in the product line.
Product Mix Strategy: The expression `product mix' is used to refer to a set of all the products offered for
r sale by a particular company. The `Product Mix Strategy’, includes all product lines and product items

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offered by a company. An organisation has various options to improve its product mix. It can add new
products in a particular product line, or add new product lines, thus widening its product mix. This
brings us to the more important question of product diversification.
(ii) Product and Services
Ans. Definition of a product: A product is the item offered for sale. A product can be a service or an
item. It can be physical or in virtual or cyber form. Every product is made at a cost and each is sold at a

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price. The price that can be charged depends on the market, the quality, the marketing and the segment
that is targeted. Each product has a useful life after which it needs replacement, and a life cycle after
which it has to be re-invented. In FMCG parlance, a brand can be revamped, re-launched or extended to
make it more relevant to the segment and times, often keeping the product almost the same.

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Definition of a services: Services are the non-physical, intangible parts of our economy, as opposed to
goods, which we can touch or handle.
Services, such as banking, education, medical treatment, and transportation make up the majority of the
economies of the rich nations. They also represent most of the emerging nations’ economies.

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(iii) Advertisement and Publicity

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Ans. Advertisement: An advertisement (often shortened to advert or ad) is the promotion of a product,
brand or service to a viewership in order to attract interest, engagement and sales. Advertisements come
in many forms, from copy to interactive video, and have evolved to become a crucial feature of the app
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marketplace.
An advertisement is different from other types of marketing because it is paid for, and because the creator
of an advert has total control over the content and message.
Publicity: Publicity is also a way of mass communication. It is not a paid form of mass communication
that involves getting favourable response of buyers by placing commercially significant news in mass
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media. Publicity is not paid for by the organisation. Publicity comes from reporters, columnists, and
journalists. It can be considered as a part of public relations.
Publicity involves giving public speeches, giving interviews, conducting seminars, offering charitable
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donations, inaugurating mega events by film actors, cricketers, politicians, or popular personalities,
arranging stage show, etc., that attract mass media to publish the news about them.
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Publicity is undertaken for a wide range of purposes like promoting new products, increasing sales of
existing product, etc. It also aimed at highlighting employees’ achievements, company’s civic activities,
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pollution control steps, research and development successes, financial performance, its progress, any
other missionary activities, or social contribution.
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Q6. What is the relationship between product life cycle and pricing? Explain your answer with
suitable examples from Tourism Industry.
Ans. Relationship between product life cycle and pricing
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Introduction Stage: When the product is introduced, sales will be low until customers become aware of
the product and its benefits. Some firms may announce their product before it is introduced, but such
announcements also alert competitors and remove the element of surprise.
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During the introductory stage the firm is likely to incur additional costs associated with the initial
distribution of the product. These higher costs coupled with a low sales volume usually make the
introduction stage a period of negative profits. During the introduction stage, the primary goal is to
establish a market and build primary demand for the product class.
Price under Introduction Stage: Generally high, assuming a skim pricing strategy for a high profit
margin as the early adopters buy the product and the firm seeks to recoup development costs quickly. In
some cases a penetration pricing strategy is used and introductory prices are set low to gain market share
rapidly.

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Growth Stage: The growth stage is a period of rapid revenue growth. Sales increase as more customers
become aware of the product and its benefits and additional market segments are targeted. Once the
product has been proven a success and customers begin asking for it, sales will increase further as more
retailers become interested in carrying it.
The marketing team may expand the distribution at this point. When competitors enter the market, often
during the later part of the growth stage, there may be price competition and/or increased promotional

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costs in order to convince consumers that the firm’s product is better than that of the competition. During
the growth stage, the goal is to gain consumer preference and increase sales.
Maturity Stage: The maturity stage is the most profitable stage. While sales continue to increase in this
stage, they do so at a slower pace. Because brand awareness is strong, advertising expenditures will be

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reduced. Competition may result in decreased market share and/or prices. The competing products may
be very similar at this point, increasing the difficulty of differentiating the product.
The firm places effort into encouraging competitors’ customers to switch, increasing usage per customer,
and converting non-users into customers. Sales promotions may be offered to encourage retailers to give

.
the product more shelf space over competing products. During the maturity stage, the primary goal is to

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maintain market share and extend the product life cycle.
Price under Maturity Stage: Possible price reductions in response to competition while avoiding a price
war.
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Decline Stage: Eventually sales begin to decline as the market becomes saturated, the product becomes
technologically obsolete, or customer tastes change. If the product has developed brand loyalty, the
profitability may be maintained longer. Unit costs may increase with the declining production volumes
and eventually no more profit can be made.
Price under Decline Stage: Prices may be lowered to liquidate inventory of discontinued products. Prices
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may be maintained for continued products serving a niche market.

Product Line Pricing (PLP): Product line pricing is a pricing strategy that uses one product with various
class distinctions. An example would be a car model that has various model types that change with
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performance and quality. This pricing process is evaluated through consumer value perception,
production costs of upgrades, and other cost and demand factors.
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Product line pricing is used when a primary product is offered with different features or benefits,
essentially creating multiple “different” products or services.
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For Example – A car could be the primary product. It could come standard, with a sunroof and
navigation system or fully stocked with all the features and add on. Each product would then be priced
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accordingly.
Goal of Product Line Pricing: The goal of product line pricing is to maximize profits. The more features
offered, the more consumers will pay. The goal is to draw enough interest in the primary product that the
upgraded product will be sold (at a greater price) based on the interest in the “basic” primary product. By
hr

using PLP, some individual products may not make profits, but the goal is for the product line as a whole
to turn a profit.
Product line pricing is seen from gas pumps to car dealerships and from ice cream shops to fast food
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restaurants. A basic car wash may be shown as one price, a super wash with wash and wax will cost a
little more, and a full-service premium wash will be the most expensive.
Price Leadership: Price leadership is the situation in which a market leader sets the price of a product or
service, and competitors feel compelled to match that price. A company has price leadership when it sets
the price of products in its industry and other companies, often much smaller than the leader, all follow
suits.
This usually happens when the products are not highly differentiated and there is enough demand for
each of the competitors to remain profitable after the price change.

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Price leadership is regarded as imperfect collusion among the oligopolistic firms, where all firms follow
the lead of one firm. The firm which takes the initiative of setting the price and announcing changes in
price from time to time is called as price leader. He fixes the price by implicit understanding rather than
formal agreement.
The price leader is generally a leader in all the markets for long periods. He can maintain his leadership
by pursuing a definite and a consistent price policy, i.e., by using his power with restraint. The leader

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should change the price, when he feels that the change in cost and demand conditions are permanent to
maintain followers’ loyalty, i.e., when the market is ready for the change.
Other firms in the industry, which match the leader’s price and variation over time, are called as price
followers. Price leadership is more common in natural and stable markets, where highly standard

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products like steel, oil, cement, are produced. However, price leadership can prevail under both pure as
well as differentiated oligopoly.
Price leadership may be dominant or barometric. Under dominant price leadership, the leader firm is
large and powerful enough to fix a price, which all other firms will be forced to follow. Each follower firm

.
takes this market price as given and produces the output at which marginal cost equals marginal

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revenue.
Here, the dominant firm acts as a monopolist, who maximizes profit by taking the supply curve of the
followers as given. While the followers offer products at competitive prices, dampening the control of
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dominant firm over the market price. The leader gets only the residual share of the market. If the market
share of the followers goes up, the monopoly power of the leader suffers.
Therefore, in this version, the equilibrium price is lower than what would be obtained by a pure
monopolist. The dominant firm can maintain its dominance in the market by innovating on ‘non-price
competitive areas’, i.e., new brands, product improvements, promotion, distribution, dealer concessions,
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free gifts, easier credit terms, free home delivery, after sales services, longer period of guarantee, etc. or
by keeping the market price low enough to deter entry.
When this leader firm sets a very low price, it may force some of the firms to leave the industry. On the
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other hand, under barometric price leadership, leader firm is regarded as a wise firm, which sets the price
reflecting the market forces and the needs of the other firms in the industry. Any alternation in price
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cannot be done by a barometric firm in an arbitrary fashion, as the dominant price leader can do.
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Q7. Discuss the need and process of training and motivating the sales personnel.
Ans. Need of sales personnel:
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• Customer loyalty: Sales training improves the person-to-person connection which is required to
gain loyal customers. According to a recent study, 71% of people base their buying decisions on
trust and credibility. It is indispensable that salespeople thoroughly understand their potential
customers’ wants and needs and at the same time also efficiently communicate the benefits of the
hr

products and services their company offers. This will make the product/service look appealing to
the audience and build that necessary loyalty. Therefore, look for sales training courses that will
enable your staff to have better interaction with clients so that the purchase occurs in a win-win
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situation, allowing the client to walk away feeling understood.

• Improved Communication: Salespeople must make sure that customers understand the products
and services offered. This is mainly possible through effective communication skills; successfully
connecting people and processes. These skills are useful for not just the sales professionals but for
business professionals in general. Excellent communicators with fantastic people skills are an
asset to any organization.
• Increased Revenue: The sales department is the main revenue-generating department in any
organization. In the evolving and competitive corporate world where all companies are striving
for customers’ attention, the responsibility is upon the sales people to offer the right product to

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the right customer at the right time. In this way, by providing training to the sales staff,
organizations ensure no time is wasted in trial and error methods that individuals might adopt if
left to themselves.
• Adjustment time for new employees: Normally, a new sales employee usually takes 2-3 months
to become fully productive for the company. With time, he learns about the products/ services,
new market, prospective clients, and competition. However, through proper sales training, his

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sales learning curve can be improved and accelerated. Sales Training will allow to understand the
customer base, sales techniques and the right approach, thereby increasing the efficiency and
output of the salesperson.
• Brand Image: Salespeople are the face of every company. Customers usually buy from the

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salespeople not from the company. A strong brand name is very important as customers relate to
it and attach an intrinsic value to it. Hence, being the face of your company, what you say, how
you say and do certain things create an impression in the mind of the prospect/ customer. A good
sales training will teach sales professionals about the behavioral and attitudinal changes to leave

.
a long-lasting impression on the minds of the customer and build a better brand for the company.

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• Overcoming objections: We must not forget that sales involve objections which are a normal part
of the sales process, as prospects tend to seek reasons not to buy. If the salesperson is not well-
trained, he orshe may simply agree with the objection and stop selling. What the most successful
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salespeople would do is: expect to receive objections during their presentation. Therefore, sales
training can teach salespeople how to anticipate objections as well as techniques for overcoming
them. A frequently used training technique is role playing, where the prospect offers numerous
objections to the trainee during a mock presentation.
• Better administrative skills: Many salespeople are more likely to focus mainly on aspects such as
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prospecting and making sales calls, while overlooking the administrative tasks. A good sales
training points out the importance of functions such as tracking daily activities, keeping accurate
records and analyzing closing ratios. Such information can help the salesperson to better manage
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their time and determine areas that need improvement. Through sales training, employees can
learn how to use software programs that can simplify the administrative process and save
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precious time.
h
ic
hr
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Training and motivating the sales personnel

Training Strategy: Sales training should incorporate both the mechanics and reasons for selling. A
training strategy such as customer relationship management instructs sales personnel on what to do
but doesn’t explain how. Just as important, for example, is training that tells sales personnel how to
develop an effective solutions-based proposal and how to demonstrate a product in a fashion that
reveals the best solutions to a customer’s problem or problems. A comprehensive training program that

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takes a trainee through each step of a sale demonstrates the selling skills necessary within each step
and sets the stage for sales success.
Motivational Factors: Participation, influence and compensation are important motivational factors.
An often less-hierarchical decision-making structure provides small-business owners a prime

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opportunity to motivate sales personnel by not only allowing, but encouraging sales personnel to
provide input and contribute their skills and experience to the overall success of the business. The
more sales personnel feel they have a real stake in the business, the greater effort they will put into
seeing the business succeed. Bonuses, benefits and sales commissions can be highly motivational,

.
especially when overall compensation is directly linked to the quantity and quality of sales.

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Motivational Tools: Small-business owners have a variety of motivational tools at their disposal to
encourage sales personnel to put forth their best efforts in securing profitable sales. Sales quotas, public
recognition, social events and an occasional weekend get-away prize can be highly motivational. A
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word of caution, however, is that while tools can be effective, they can also encourage competition
within the department. If not properly managed, competition among sales personnel can have an
unintended but opposite effect on staff, causing disputes and negative feelings.
Training to Increase Sales: Creating interactive training that helps increase sales for your small
business typically starts by analyzing your sales force’s current ability to sell your products and
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services. By identifying performance gaps, you can design and develop a series of training workshops,
seminars or self-paced modules that allow your workforce to develop the skills and knowledge they
need to sell more effectively. Training to increase sales effectiveness prepares your sales team to excel
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in the foundational competencies associated with successful sales people. Establishing this sales
competency model for your small business, or using one created by a professional organization, such
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as the American Society for Training and Development, allows you to ensure that all personnel obtain
and maintain a robust set of sales skills.
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Relationships: Sales training programs usually includes role-playing exercises and other training
games that help participants develop good communication skills. With expertise in negotiating,
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influencing and presenting, your sales team can build productive customer relationships. For example,
training facilitators divide a workshop into pairs. One person plays the role of the potential customer
and the other plays the role of the sales person. The sales person practices persuading the other person
to buy his product. After five minutes, the pairs switch roles and then discuss their experiences.
hr

Analyzing: Sales personnel typically need the ability to solve problems effectively, make decisions and
understand the customer’s problem. Training to increase sales usually includes reading case studies,
white papers or articles that describe customer dilemmas and how an innovative sales person solved
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the problem and made the sale. For example, the Harvard Business Review website provides access to
these types of resources. They contain tips, techniques and tricks that help people learn how to offer
the right product or service to meet a customer’s need at the right price at the right place using the
right promotional technique.

Q8. What do you understand by Cyber Marketing? Discuss the advantages and disadvantages of
Cyber Marketing with suitable examples.
Ans. Cyber marketing term became popular when computers started getting used in marketing
extensively. Earlier, computers were used more for storing, processing and reporting of various

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marketing related information. But, with the entry of internet the online data handling possibilities have
virtually exploded the use of computer. This application has m Cyber Marketing ultiplied the use of
computers at consumers homes faster than among the organisations. This fact has helped marketers
substantially to look into cyber marketing. As a result, cyber marketing today is also seen more as
internet based marketing rather than just computer based marketing. However, for our purpose, we shall
define cyber marketing as that part of marketing which involves extensive use of computers, especially

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the internet.
Cyber marketing profitably reinforces the concepts of marketing with the power of internet. Thus, it
strengthens the existing delivery of marketing outputs and also opens newer avenues of marketing which
were not possible to achieve before the' arrival of internet. For example, a marketer today can keep track

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of millions of customers simultaneously, segment them online, offer customised products to individual
customers, fix different prices, provide varying contents and styles of information and deliver the
products through appropriate modes of distribution to each of these customers. The details of such
transactions and the characteristics of each of these customers can be stored for their dynamic utilisation

.
in future marketing opportunities with the customers. These possibilities were only the dreams of earlier

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marketers.
Advantages and Disadvantages of Cyber Marketing:
Advantages of Cyber marketing
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• Global reach - a website allows you to find new markets and trade globally for only a small
investment.
• Lower cost - a properly planned and well targeted digital marketing campaign can reach the
right customers at a much lower cost than traditional marketing methods.
• Trackable, measurable results - measuring your online marketing with web analytics and other
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online metric tools makes it easier to establish how effective your campaign has been. You can
obtain detailed information about how customers use your website or respond to your
advertising.
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• Personalisation - if your customer database is linked to your website, then whenever someone
visits the site, you can greet them with targeted offers. The more they buy from you, the more
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you can refine your customer profile and market effectively to them.
• Openness - by getting involved with social media and managing it carefully, you can build
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customer loyalty and create a reputation for being easy to engage with.
• Social currency - digital marketing lets you create engaging campaigns using content
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marketing tactics. This content (images, videos, articles) can gain social currency - being passed
from user to user and becoming viral.
• Improved conversion rates - if you have a website, then your customers are only ever a few
clicks away from making a purchase. Unlike other media which require people to get up and
hr

make a phone call, or go to a shop, digital marketing can be seamless and immediate.
Disadvantages of Cyber marketing
• Skills and training - You will need to ensure that your staff have the right knowledge and
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expertise to carry out digital marketing with success. Tools, platforms and trends change rapidly
and it's vital that you keep up-to-date.
• Time consuming - tasks such as optimising online advertising campaigns and creating marketing
content can take up a lot of time. It's important to measure your results to ensure a return-on-
investment.
• High competition - while you can reach a global audience with digital marketing, you are also
up against global competition. It can be a challenge to stand out against competitors and to grab
attention among the many messages aimed at consumers online.

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• Complaints and feedback - any negative feedback or criticism of your brand is can be visible to
your audience through social media and review websites. Carrying out effective customer service
online can be challenging. Negative comments or failure to respond effectively can damage your
brand reputation.
• Security and privacy issues - there are a number of legal considerations around collecting and
using customer data for digital marketing purposes. Take care to comply with the rules regarding

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privacy and data protection.

Q9. Discuss the impact of Government Control on Product Design.

Ans. We will discuss these with reference to each element of the marketing mix. The first element that

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needs to be discussed in this context is obviously the `product'. The relevant provisions of the concerned
laws which effect the choice of the marketer will be highlighted.
The following are the relevant laws and other provisions which need to be explained in this context.
1. The Industries (Development and Regulation) Act, 1951: The Industrial Development and

.
Regulation Act, 1951 is an important' piece of legislation affecting the industrial sector of the

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country.
The provisions of this Act not only influence the product decisions, but also the pricing and distribution
decisions of companies in India.
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In order to equip the new challenges posed by the changed national and global economic environment
the government was compelled to issue the new industrial policy statement on 24th July 1991 which
incorporates various liberalisation measures directed towards unshackling the Indian industry from
Administrative and legal controls.
Objectives: The Act, provides Central government means of implementing the industrial policy. The
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preamble to the Act states that I (D&R) Act is an act `to provide for the development and regulation of
certain industries which are specified in the first schedule of the Act known as "Scheduled Industries".
The central government has no powers to add any new undertakings to the first schedule mentioned
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above.
The central government has framed the "Registration and licencing of Industrial undertaking Rules 1952"
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which prescribes the general procedures to be followed for the purpose of regulation and licencing of an
industrial undertaking.
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You may note that I(D&R) Act primarily deals with

a) developmental aspects
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b) regulating aspects of scheduled industries as specified in the first schedule of the Act.
Regulation of scheduled industries is sought to be done by means of a system of
a) registration of existing undertakings
b) licensing of new undertakings for producing new articles
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c) substantial expansion or change of location of existing undertaking.

According to Section 11 of the Act the manufacturer of a product listed in the first schedule of the Act
who carries on production in a factory must register the new industrial undertaking in the prescribed
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manner within 3 months from the date it becomes such an undertaking.

A factory for this purpose means any premises in which a manufacturing process is being carried on
a) with the aid of power employing 50 or more workers or
b) without the aid of power employing 100 or more workers.
2. Production of a New Article by an Existing Undertaking: The definition of the term in the Act
that the existing undertaking which propose to manufacture new article covered within the ambit
of the same item in the first schedule under which the concerned undertaking held a registration
certificate or industrial licence, and that where no new trade mark or no new patent was

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involved, the article of proposed manufacturer would not be considered as a new article and
there should be no objection to the owner of the industrial undertaking manufacturing it.
3. New Industrial Policy, 1991 and Essentials for Licensing: The New industrial policy was
announced by the Government on July 24, 1991. The announcement was inevitable in view of the
fast changing national and global economic environment and invasion of global multinationals
into Indian markets, the policy also proposed a range of liberatlisation measures which include

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abolishing of compulsory licensing for all industries with few exceptions, promotion and tapping
of foreign investment in Indian projects, rehabilitation of the public sector and discontinue of
ceiling on assets limit under the MRTP Act.
The decisions of the Government with respect to industrial Licensing are as follows:

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• Industrial licensing will be abolished for all projects but for industries related to security and
strategic concerns, social organisation promoting welfare and development hazardous chemicals
etc. industries reserved for the small scale sector will continue to be so reserved.
• The security and strategic related industries will continue to be reserved for the public sector

.
alone.

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• In projects where imported capital goods are essential, automatic clearance will be given: a) In
cases where foreign exchange availability is ensured through foreign equity or b) If the CIF value
of imported capital goods required is less than 25% of total value (net of taxes) of plant and
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equipment, upto a maximum value of Rs. 2 crores. In other cases, imports of capital goods will
require clearance from the Secretariat of industrial Approvals (SIA) in the Department of
Industrial Development according to availability of foreign exchange resources.
• In locations other than cities of more than 1 million population, there will be no requirement of
obtaining industrial approvals from the Central Government except for industries subject to
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compulsory licensing. In respect of cities, with population greater than I million industries other
than those of non-polluting nature such as electronics, computer software and printing will be
located outside 25 kms. of the periphery, except in prior designated industrial areas. A flexible
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location policy would be adopted in respect of such, cities (with population greater than 1
million) which require industrial regeneration. Appropriate incentives and the design of
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investments in infrastructure development will be used to promote the dispersal of industry

particularly to rural and backward areas and to reduce congestion of cities.
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• The. system of phased manufacturing programmes run on an administrative case by case basis
will not be applicable to new projects. Existing projects with such programmes will continue to
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be governed by them.
• Existing units will be provided a new broad banding facility to enable them to produce any
article without additional investment.
• The exemption from licensing will apply to all substantial expansions of existing units.
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• The mandatory convertibility clause will no longer be applicable for term loans from the financial
institutions for new projects.
4. Exemption from industrial licensing under the New Industrial Policy, 1991: The Government
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vide Notification No. 477 (E) dated 25-07-1991 has exempted certain industrial undertakings from
the operation of the provisions of Sections 10, 11, 11A and 13 of the Act i.e. registration of existing
industrial undertakings, licensing of new industrial undertakings, licensing for manufacture of
new article and other provisions for licensing in special cases.
The exemption applies to:
• Small scale/ancillary industrial undertakings subject to the condition that the article(s)
manufactured is:
a) covered under Schedule III, which contains the list of articles reserved for exclusive manufacture in the
small scale sector.

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b) not covered under Schedule 1, which contains the list of industries reserved for the public sector.
c) not covered under Schedule II which contains the list of industries in respect of which licensing is
compulsory. i.e. small scale and ancillary undertakings would not require licensing for all articles of
manufacture which are not subject to compulsory licensing or reserved for the public sector in addition to
being exempted from licensing for all articles of manufacture exclusively reserved for the small
scale/ancillary industry even if they happen to be included in the list in Schedule II.

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ii) Other industrial undertakings (i.e. other than small scale or ancillary ones) subject to the condition
that:
a) the article(s) of manufacture does not fall under Schedule I, H and III respectively.
b) the proposed project is not located within 25 kms. from the periphery of the standard urban area limit

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of cities having a population of more than 10 lakhs as per the 1991 census.

Q10. Write short notes on any two of the following:

(i) Buyer decision making process

.
Ans. Even buying decision involves an element of active reasoning. The manner in which this active

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reasoning manifests itself is illustrated in Figure. In making a purchase decision the consumer goes
through the five stages of:
• problem recognition,
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• pre-purchase information search,
• evaluation of alternatives,
• purchase decision, and
• post purchase behaviour.
However, in case of routine purchases, the consumer may skip the second and third stages and straight
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away go to the stage of purchase decision. But in case of purchase decision involving extensive problem
solving, the consumer is likely to go through all the five stages in the specified sequence.
The important point to note is that the buying process starts much before the actual purchase and has
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implications even after the purchase has been made. This should give ideas to the marketer as to how he
has to start designing his marketing strategy in order to achieve his specified marketing objectives.
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h
ic

Stages in the Buyer Decision Process

Let us understand the stages in decision-making process with the help of a Mr. Rao's specific decision to
purchase a briefcase.
hr

• Problem Recognition: The buying process starts with the buyer recognising a need or problem.
Mr. Rao feels very uncomfortable carrying his papers, files and lunch packet in his hand or in a
plastic bag to his work place. Sometimes, the papers and even files from his hand and get spoiled
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Mr. Rao feels the need for a suitable receptacle to carry papers to and fro from his office and has
identified a briefcase as the solution to his problem.
• Pre-Purchase Information Search: In response to the stimuli provided by the need for a briefcase,
Mr. Rao starts searching for information on the kinds of briefcases available in the market. Search
can be of two types: internal and external. Internal search refers to recalling relevant information
stored in the memory. For instance, Mr. Rao may recall having seen the different kinds of
briefcases used by his colleagues. Or he may recall having seen some advertisements for
briefcases on the television or in some magazines and newspapers. External search refers to the

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deliberate and voluntary seeking of new information regarding the product/brand under
consideration. Mr. Rao can seek information from the following three sources:
• Personal sources: family, friends, colleagues, neighbours.
• Commercial sources: advertisements, retailers, salesmen.
• Public sources: seeing others, consumer information centres.
Evaluation of Alternatives: Mr. Rao will make his final decision using certain evaluative criteria. The

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most commonly used criteria are: (i) product attribute, (ii) the relative importance of each attribute to the
consumer, (iii) brand image, (iv) attitudes towards the different brands or alternatives under
considerations. For instance, the product attributes of the (Plastic branded briefcase) alternatives
identified by Mr. Rao are: , unbreakable, lightweight, spaciousness, reliability of locking system, colour,

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price. Mr. Rao attaches maximum importance to the product attributes of light weight and spaciousness
as compared to other attributes. He already has some kind of attitude towards the various brands
developed in the stage of information search which will affect his final decision.
This stage of the buying decision process gives the marketer a chance to modify his product offering in

.
keeping with the relative importance attached to each attribute by various consumer segments, altering

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beliefs and attitudes about his own brand, and calling attention to neglected product attributes.
Purchase Decision: In the evaluation stage, Mr. Rao has ranked the various brands in terms of his first,
second and third preference. In short, he has made up his mind about which brand he wants to buy.
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However, Mr. Rao may finally end up buying a brand which is not his most preferred. This may happen
because attitudes of others and ''situational factors.
For instance, when Mr. Rao goes to the shop to make his purchase, the shopkeeper's negative remarks
about his (Mr. Rao's) most preferred brand may make him change his mind. Also, it is possible that Mr.
Rao's preferred brand is not available, or there is a very attractive price discount on the brand ranked
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third by him which eventually makes him change his mind.

Post Purchase Behaviour: After purchasing the briefcase, if Mr. Rao finds that its performance or utility
matches up to his expectation, Mr. Rao will feel satisfied with his purchase. The satisfaction will reinforce
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Mr. Rao's perceived favourable image of the brand, which is likely to be extended to the entire range of
products manufactured by the Company. Also, Mr. Rao is likely to strongly recommend the brand when
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his friends ask his advice for buying a new briefcase. A satisfied customer is thus a very powerful source
of influence for potential customers
h

(ii) Marketing Research in Tourism

Ans. Marketing research aims at collecting important information from the customers. In the case of
ic

tourism, the tourists are the customers. Just like any line of business, the tourism industry needs to
strengthen its relationship with its customers by improving the quality of its services. Marketing research
can be an important tool in fulfilling such need.
Function: Marketing research allows tourism organizations and businesses to gather and consolidate
hr

information reflecting customer satisfaction, wants and needs. In addition it can also provide statistics on
customer`s number of visits, profiles and characteristics. The research can also measure which facilities
and activities are very popular among the tourists and which areas of offered services need improvement.
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You will also be able to know how effective your advertising strategies are in attracting visitors.
Requirements: In conducting marketing research, the most important element is asking the right
questions. The right questions always lead to making accurate conclusions. The research process requires
a well-organized survey process that is directed towards getting the needed information and valid
results. The survey questionnaire must be clear, direct and easy to answer. Another requirement of
marketing research is the sample of respondents. This refers to the customers who will answer the
questionnaires. The marketing research must be administered and supervised by a team of individuals
who are knowledgeable and experienced in this field.

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Benefits
Once you are able to retrieve relevant information about customers, you will be able to make calculated
decisions and plans to satisfy customers and provide a better service. This is according to an article on the
website morebusiness.com. These decisions may include improvement of facilities, entertainment
activities and customer service. When customers are satisfied, this will result to repetitive visits. Such
customers become advertising tool as they will share their experience to their families and friends. With

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marketing research, you can design packages and deals and communicate these appropriately to the
target market. Taking the steps toward innovation reflects well on the reputation of the business.
Considerations
The method of research must always be taken into account. The customers must be given adequate time

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to answer the survey and should be picked randomly to ensure that there is no bias on the results.
According to the article from the website stayinginwales.com, market research in tourism must be
repeated for it to be it effective. The article further emphasized that tourism trend may change suddenly
or over a period of time. Factors that affect these changes may be political and economic events and

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situations.

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Challenges
Conducting market research cannot be an act of impulse. It requires careful planning and evaluation. Dr.
William A. Cohen, the author and founder of the Institutes of Leader Arts enumerates some of the
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challenges in conducting market research. He said that that it can be expensive and it requires a
considerable amount of time. He further added that it also gives a chance to other competitors to look
into what you are doing with your business. You have to set realistic expectations in terms of what you
can spend on the research in relation to what you can achieve by doing it.
(iii) Importance of ‘People’ in tourism industry
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Ans. The role of local populations in the development and management of protected areas has been
fuelling debates since the early 2000s and has become central to all development issues. The
‘empowerment’ of these communities is today a key concept in political discourse and cooperation. These
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new priorities have led to the development of ‘pro-poor tourism’ and ‘community tourism’, which target
effective participation by the local people in tourism projects and the equitable redistribution of the
99 a

revenues generated by these activities. Participatory management mechanisms have been established in
tourism development policies, the globalisation of this term evidence of an international desire for the
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harmonisation of development methods.

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