Important Notes for Marketing for Half yearly Exams

Question 1 Define the following:

1)
Digital Marketing:
Digital marketing, also known as online marketing, refers to advertising delivered through
digital channels to promote brands and connect potential customers using the internet and
other forms of digital communication such as: 

 Search engines

 Websites

 Social media

 Email

 Mobile apps

 Text messaging

 Web-based advertising
In-short, if a marketing campaign is using any of the above online media channels, it is
digital marketing.

advantages:
a)You will get to know your audience.
b) It doesn’t cost much.
c) You can market to anyone, anywhere.
d) Digital marketing is adaptable.
e) You can personalize by channel.

2)
Bricks and Clicks Model:
Bricks and clicks is a term for a business model by which a company integrates both offline
(bricks) which means shops and stores plus online (clicks) presences. Additionally
sometimes retailers add a few extra flips added such as catalogue, telephone ordering and
mobile phone apps and telephone sales support. The initiation of mobile web has made
businesses operating bricks and clicks businesses very popular, because it means
customers can do tasks like shopping when they have spare time and do not have to be at a
computer. Most of the bricks and clicks customers like to use mobile shopping sites. A
common example of the bricks and clicks model is when a chain of stores allows the
customer to order products both online and physically in one of their stores, also allowing
them to either pick-up their order directly at a local branch of the store or get it delivered to
their home.

Advantages: bricks and clicks is beneficial to various segments. For example,

supermarkets often have different customer types requiring alternative shopping
options; one group may wish to see the goods directly before purchase and like the
expediency of quickly shopping, while another group may require a different
convenience of shopping online and getting the order delivered when it suits them.
Thus, having a bricks and clicks model means both customer groups are satisfied.

Disadvantages: A major factor of concern of this business model is cost controlling,

as usually maintaining a physical presence and online presence. Also, online
shopping makes price comparison easier for customers, this encourages a ‘race-to-
the-bottom’, where retailers only compete on price, with quality and service
deteriorating as a result. This is especially dominant because online shopping allow
prices to be compared without even visiting a retailer’s website.

3) Meta Market:

Definition: Meta Market is a customer-centric virtual market that offers

closely related products or services belonging to the same industry or
diverse set of industries. It strives to cater for the similar needs of diversified
customers under one roof.
Thus, one can find everything related to a certain market in one place. Thereby accumulating all the
customers of the products and its complementary products under one umbrella.

For Example, a website selling everything related to Cars. Customers will find
a complete range of products belonging to the Car industry like:

1. Various Models of Cars

2. Car Insurance
3. Parts and Accessories
4. Rental Services
5. Servicing, etc.
The core idea behind this concept is to gather customers with common needs.
However, it eliminates the idea of offering multiple products to a single
customer. Therefore, we call it the customer-centric rather than the
product-centric approach.
Advantages or Benefits of Meta Market

To firms

 Horizontal and Vertical Segments: The development of this

system can be either horizontal (across industries) or vertical
(within the industry).
 Centralized Platform: It is an intermediary that helps widen the
market reach and facilitates automation.
 Supply Chain Efficiency: It provides a base for creating and
improving the industry’s new and existing supply chains.
 Strong Network: Firms create a strong network within/across
industries and customers through meta markets.
To customers

 Accessibility: Customers have access to all the potential alternatives

of the demanded products.
 Easy Switching: They can visit various meta-markets and select the
best alternative available.
 Procurement and Delivery: Making a purchase from a meta
market eases the complete procedure of procuring the goods. As the
products are delivered to the doorsteps.

4) Market Place

It refers to a place where goods and services are traded physically. For

Example, Any departmental store or vegetable market near you.
5) Market Space

It is a virtual space that facilitates the sale and purchase of a wide variety of

products. For ex. companies like Flipkart and Amazon.

6)Globalization

Globalization refers to the spread of the flow of financial products, goods,

technology, information, and jobs across national borders and cultures.

7) Marketing Competition:
So, what does competition mean in the field of marketing? Competition is the
rivalry between companies selling similar products and services with the goal
of achieving revenue, profit, and market share growth. Market competition
motivates companies to increase sales volume by utilizing the four
components of the marketing mix, also referred to as the four P's. These P's
stand for product, place, promotion, and price. Knowing and understanding
your competition is a critical step in designing a successful marketing strategy.
If you are not aware of who the competition is and knowledgeable about their
strengths and weaknesses, it's likely that another firm could enter the picture
and provide a competitive advantage, such as product offerings at lower prices
or value added benefits. Identifying your competition and staying informed
about their products and services is the key to remaining competitive in the
market and is crucial to the survival of any business.

Question 2:

Social Responsibility in Marketing:

The concept of social responsibility holds that businesses should be good
citizens, balancing their money-making operations with activities that
benefit society, be it on a local, national, or global scale. Social
responsibility in marketing involves focusing efforts on attracting
consumers who want to make a positive difference with their purchases.
Many companies have adopted socially responsible elements in their
marketing strategies to help a community via beneficial services and
products.
Examples of Following Social Responsibility in Marketing:
Examples include green branding, highlighting the inclusion of recycled
materials, or noting that a portion of profits will be donated to charity.

Question 3 :

What Is a Marketing Mix?

A marketing mix includes multiple areas of focus as part of a comprehens-

ive marketing plan. The term often refers to a common classification that
began as the four Ps: product, price, placement, and promotion.
Product
This represents an item or service designed to satisfy customer needs and
wants. To effectively market a product or service, it's important to identify
what differentiates it from competing products or services. It's also import-
ant to determine if other products or services can be marketed in conjunc-
tion with it.
Price
The sale price of the product reflects what consumers are willing to pay for
it. Marketing professionals need to consider costs related to research and
development, manufacturing, marketing, and distribution—otherwise
known as cost-based pricing. Pricing based primarily on consumers' per-
ceived quality or value is known as value based pricing
Placement
The type of product sold is important to consider when determining areas
of distribution. Basic consumer products, such as paper goods, often are
readily available in many stores. Premium consumer products, however,
typically are available only in select stores. Another consideration is
whether to place a product in a physical store, online, or both.
Promotion
Joint marketing campaigns also are called a promotional mix. Activities
might include advertising, sales promotion, personal selling, and public re-
lations. 

Difference between Customer and Consumer

customer Consumer 

Definition

Customer is the one who is purchasing the Consumer is the one who is the end user of any
 goods. goods or services.

Ability to resell

Customer can purchase the good and is able to Consumers are unable to resell any product or
resell service.

Need for purchase

Customers need to purchase a product or ser- For a consumer purchasing a product or service
vice in order to use it. is not essential.

Motive of buying

The motive of buying is either for resale or for The motive of buying is only for consumption
consumption

Is payment necessary

Must be paid by customer May or may not be paid by the consumer

Question 11 Functions of Marketing Manager or Functions of Marketing Man-

agement

 Marketing Research=Market research is an organized effort to gather informa-

tion about target markets and customers: know about them, starting with who
they are. It is an important component of business strategy and a
major factor in maintaining competitiveness.

 Product Planning Development=Product planning is the set of

methods and processes a business uses to plan the development
of a new product. It centres around the internal processes that are
required for a product to be developed.

 Standardisation and Grading=Standardisation : The term 'stand-

ardisation ' is derived from the word 'standard' which means the
 presence of certain desirable qualities like durability, safety, purity
and other features like design, weight, colour, etc in a product. It
implies that the different units of the commodity are of a specified
and uniform quality.
Grading : It refers to the process of dividing products into classes
made up of units possessing similar characteristics. It involves divi-
sion of products into classes, lots or groups in accordance with
predetermined grades of quality. Grading helps in fixing and secur-
ing remunerative prices for the product
 Product Pricing=Pricing: It can be regarded as one of the most im-
portant parts of marketing function. It is the price of a product that
determines whether it will be successful or a failure.

 Advertising and Sales Promotion=While advertising presents a

reason to buy a product, sales promotion offers a short-term in-
centive to purchase. Sales promotions often attract brand switch-
ers (those who are not loyal to a specific brand) who are looking
primarily for low price and good value.

 Distribution Management=Distribution management is the process

used to oversee the movement of goods from supplier to manufac-
turer to wholesaler or retailer and finally to the end consumer. Nu-
merous activities and processes are involved, packaging, ware-
housing, inventory, supply chain, logistics.

12) Demand Creation:

Demand creation is an attempt to create the needs, awareness, and in-
terest in a company’s product or service in the minds of potential cus-
tomers. It is about educating consumers about why they need company
products. Demand creation is the process of increasing the demand for
a product or service using marketing techniques. The term is typically
applied to unsought products that have little demand because it's they
are unknown to customers.

Question13. What is Global Marketing?

Global marketing is adjusting a company's marketing strategy to the spe-
cific needs of international consumers
Global marketing involves planning, producing, placing, and promoting a
business' products or services in the worldwide market.

Question 13. Explain Micro Marketing Environment.

There are two elements within the external marketing environment; micro and
macro. These environmental factors are beyond the control of marketers but
they still influence the decisions made when creating a strategic marketing
plan.

Micro Environment Factors

 Suppliers: Suppliers can control the success of the business when they hold
power. The supplier holds the power when they are the only or the largest sup-
plier of their goods; the buyer is not vital to the supplier’s business; the sup-
plier’s product is a core part of the buyer’s finished product and/or business.
 Resellers: If the product the organisation produces is taken to market by
3rd party resellers or market intermediaries such as retailers, wholesalers, etc.
then the marketing success is impacted by those 3rd party resellers. For ex-
ample, if a retail seller is a reputable name then this reputation can be lever-
aged in the marketing of the product.
 Customers: Who the customers are (B2B or B2C, local or international, etc.) and
their reasons for buying the product will play a large role in how you approach
the marketing of your products and services to them.
 The competition: Those who sell the same or similar products and services as
your organisation is your market competition, and the way they sell needs to be
 taken into account. How do their prices and product differentiation impact you?
How can you leverage this to reap better results and get ahead of them?
 The general public: Your organisation has a duty to satisfy the public. Any ac-
tions of your company must be considered from the angle of the general public
and how they are affected. The public has the power to help you reach your
goals; just as they can also prevent you from achieving them.

Macro Environment Factors

 Demographic forces: Different market segments are typically impacted by
common demographic forces, including country/region; age; ethnicity; educa-
tion level; household lifestyle; cultural characteristics and movements.
 Economic factors: The economic environment can impact both the organisa-
tion’s production and the consumer’s decision-making process.
 Natural/physical forces: The Earth’s renewal of its natural resources such as
forests, agricultural products, marine products, etc must be taken into account.
There are also natural non-renewable resources such as oil, coal, minerals, etc
that may also impact the organisation’s production.
 Technological factors: The skills and knowledge applied to the production, and
the technology and materials needed for the production of products and ser-
vices can also impact the smooth running of the business and must be con-
sidered.
 Political and legal forces: Sound marketing decisions should always take into
account political and/or legal developments relating to the organisation and its
markets.
 Social and cultural forces: The impact the products and services your organisa-
tions brings to market have on society must be considered. Any elements of the
production process or any products/services that are harmful to society should
be eliminated to show your organisation is taking social responsibility. A recent
example of this is the environment and how many sectors are being forced to
review their products and services in order to become more environmentally
friendly.

Wrap Up
Micro and macro environments have a significant impact on the success of
marketing activities, and therefore such environmental factors must be
considered in-depth during the process of creating a strategic marketing plan.
Considering these factors will improve the success of your organisation’s
marketing campaign and the reputation of the brand in the long term.

Question 14.Difference between micromarketing and macro marketing.

Micro marketing vs macro marketing – tabular
comparison
MICRO MARKETING VS MACRO MARKETING

Meaning

Focuses on individual steps of the process. Focuses on the process as a whole.

Scope

Related to production process and overall operations of Related to how the production process is linked to the
a company. consumer and the global purchase pattern.

Concerns

Concerned with the individual consumer behavior and Concerned with laws regulating marketing, social
the four Ps – product, price, promotion and place. responsibility, efficiency of marketing campaigns and
the overall consumer behavior patterns

Purchasing target

The individual The maximum possible consumer base

Relationships and networks

Generate repetitive sales and brand loyalty at the Effective use of resources at the community level;
individual level developing a network of communities

Conclusion – micro marketing vs macro marketing

Both micro and macro marketing are extremely important, and their use depends on what the
focus of the business is. Therefore, it is critical to obtain an understanding of these two
concepts of marketing. These strategies perform an important role in facilitating businesses to
generate an effective marketing strategy. An effective marketing strategy allows business to
shift to an entirely new level and ensures that it gains maximum success in terms of revenues
and profits.

Question
Segmentation concepts, benefits, and need. Segmentation
basis for consumer goods and services: demographic, geo-
graphic, psychographic, and behavioural.
Segmentation bases for business markets.
https://www.google.com/search?q=video+on+market+seg-
mentation&rlz=1C1NDCM_enIN835IN835&oq=video+on+mar -
ket&aqs=chrome.3.0i512j69i57j0i512l3j0i22i30i625l5.16159j0j1
5&sourceid=chrome&ie=UTF-
8#fpstate=ive&vld=cid:473a1e4e,vid:EQ2pgHbvK0A
Please watch the video above for market segmentation.

Market Segmentation: Definition, Example, Types, Benefits

What Is Market Segmentation?
Market segmentation is a marketing term that refers to aggregating pro-
spective buyers into groups or segments with common needs and who re-
spond similarly to a marketing action. Market segmentation enables com-
panies to target different categories of consumers who perceive the full
value  of certain products and services differently from one another.
KEY TAKEAWAYS
 Market segmentation seeks to identify targeted groups of consumers
to tailor products and branding in a way that is attractive to the
group.
 Markets can be segmented in several ways such as geographically,
demographically, or behaviourally.
 Market segmentation helps companies minimize risk by figuring out
which products are the most likely to earn a share of a target market
and the best ways to market and deliver those products to the mar-
ket.
 With risk minimized and clarity about the marketing and delivery of a
product heightened, a company can then focus its resources on ef-
forts likely to be the most profitable.
  Market segmentation can also increase a company's demographic
reach and may help the company discover products or services they
hadn't previously considered.
2 seconds of 1 minute, 40 secondsVolume 75
01:31

https://ww https://youtu.be/EQ2pgHbvK0A https://youtu.be/EQ2pgHbvK0A w.google.com/search?

q=video+on+market+segmentation&rlz=1C1NDCM_enIN835IN835&oq=video+on+market& Market
Segmentation

Understanding Market Segmentation

Companies can generally use three criteria to identify different market seg-
ments:
1. Homogeneity, or common needs within a segment
2. Distinction, or being unique from other groups
3. Reaction, or a similar response to the market
For example, an athletic footwear company might have market segments
for basketball players and long-distance runners. As distinct groups, bas-
ketball players and long-distance runners respond to very different advert-
isements. Understanding these different market segments enables the ath-
letic footwear company to market its branding appropriately.
Market segmentation is an extension of market research that seeks to
identify targeted groups of consumers to tailor products and branding in a
way that is attractive to the group. The objective of market segmentation is
to minimize risk by determining which products have the best chances of
gaining a share of a target market and determining the best way to deliver the
products to the market. This allows the company to increase its overall effi-
ciency by focusing limited resources on efforts that produce the best return
on investment (ROI).
Market segmentation allows a company to increase its overall efficiency by
focusing limited resources on efforts that produce the best return on
investment (ROI).
Types of Market Segmentation
There are four primary types of market segmentation. However, one type
can usually be split into an individual segment and an organization seg-
ment. Therefore, below are five common types of market segmentation.
Demographic Segmentation
Demographic segmentation is one of the simple, common methods of mar-
ket segmentation. It involves breaking the market into customer demo-
graphics as age, income, gender, race, education, or occupation. This
market segmentation strategy assumes that individuals with similar demo-
graphics will have similar needs.
Example: The market segmentation strategy for a new video game con-
sole may reveal that most users are young males with disposable income.
Firmographic Segmentation
Firmographic segmentation is the same concept as demographic segment-
ation. However, instead of analysing individuals, this strategy looks at or-
ganizations and looks at a company's number of employees, number of
customers, number of offices, or annual revenue.
Example: A corporate software provider may approach a multinational firm
with a more diverse, customizable suite while approaching smaller com-
panies with a fixed fee, more simple product.
Geographic Segmentation
Geographic segmentation is technically a subset of demographic segment-
ation. This approach groups customers by physical location, assuming that
people within a given geographical area may have similar needs. This
strategy is more useful for larger companies seeking to expand into differ-
ent branches, offices, or locations.
Example: A clothing retailer may display more raingear in their Pacific
Northwest locations compared to their Southwest locations.
Behavioural Segmentation
Behavioural segmentation relies heavily on market data, consumer ac-
tions, and decision-making patterns of customers. This approach groups
consumers based on how they have previously interacted with markets
and products. This approach assumes that consumers prior spending
habits are an indicator of what they may buy in the future, though spending
habits may change over time or in response to global events.
Example: Millennial consumers traditionally buy more craft beer, while
older generations are traditionally more likely to buy national brands.1
Psychographic Segmentation
Often the most difficult market segmentation approach, psychographic
segmentation strives to classify consumers based on their lifestyle, per-
sonality, opinions, and interests. This may be more difficult to achieve, as
these traits (1) may change easily and (2) may not have readily available
objective data. However, this approach may yield strongest market seg-
ment results as it groups individuals based on intrinsic motivators as op-
posed to external data points.
Example: A fitness apparel company may target individuals based on their
interest in playing or watching a variety of sports.

Question Give an example of a product which can be segmented on a

seasonal basis.
People purchase certain products during major holidays like New Year, Christmas,
Halloween, Thanksgiving, etc. Such seasons impact purchasing behaviours and
you can segment your audience based on this. Targeting such market segments with
the right advertisements can drive your campaigns to success in different seasons.

Question: Target markets- the concept and criteria for selecting.

Same as Segmentation
What Is a Target Market?
A target market is a group of people that have been identified as the most
likely potential customers for a product because of their shared character-
istics such as age, income, and lifestyle.
Identifying the target market is a key part of the decision-making process
when a company designs, packages, and advertises its product.
KEY TAKEAWAYS
 A target market is a group of customers with shared demographics
who have been identified as the most likely buyers of a company's
product or service.
 Identifying the target market is important in the development and im-
plementation of a successful marketing plan for any new product.
 The target market also can inform a product's specifications, pack-
aging, and distribution.
How Do I Define My Product's Target Market?
Part of creating a new product is envisioning the consumers who will want
it.
A new product must satisfy a need or solve a problem, or both. That need
or problem is probably not universal unless it reaches the level of indoor
plumbing. More likely, it is needed by a subset of consumers, such as en-
vironmentally-conscious vegetarians, or science nerds, or outdoor enthusi-
asts. It may appeal to a teenager or a middle-aged professional, a bargain-
hunter or a snob.
Envisioning your likely target market is part of the process of creating and
refining a product, and informs decisions about its packaging, marketing,
and placement.
What Are the 4 Target Markets?

Marketing professionals divide consumers into four major segments:

Demographic: These are the main characteristics that define your target
market. Everyone can be identified as belonging to a specific age group,
income level, gender, occupation, and education level.
Geographic: This segment is increasingly relevant in the era of globaliza-
tion. Regional preferences need to be taken into account.
Psychographic: This segment goes beyond the basics of demographics
to consider lifestyle, attitudes, interests, and values.
Behavioural: This is the one segment that relies on research into the de-
cisions of a company's current customers. New products may be intro-
duced based on research into the proven appeal of past products.1
What Is an Example of a Target Market?
Each of the four target markets can be used to consider who the customer
for a new product is.
For example, there are an estimated 100,000 Italian restaurants in the
U.S. Clearly, they have enormous appeal.
But a corner pizza joint might appeal mostly, although by no means en-
tirely, to a younger and more budget-conscious consumer, while an old-
fashioned white tablecloth place might be dominated by older folks and
families who live in the neighbourhood. Meanwhile, a newer place down
the street might cater to an upscale and trend-conscious crowd who will
travel a good distance for the restaurant's innovative menu and fancy wine
list.
In each successful case, a savvy business person has consciously con-
sidered the ideal target market for the restaurant and has tweaked the
menu, decor, and advertising strategy to appeal to that market.
Why Are Target Markets Important?

Few products today are designed to appeal to absolutely everyone. The

Aveda Rosemary Mint Bath Bar, available for $23 a bar at Aveda beauty
stores, is marketed to the upscale and eco-conscious woman who will pay
extra for quality. Cle de Peau Beaute Synactif Soap retails for $110 a bar
and is marketed to wealthy, fashion-conscious women who are willing to
pay a premium for a luxury product. An eight-pack of Dial soap costs under
$5 on Amazon, and it is known to get the job done.
Part of the success of selling a good or service is knowing to whom it will
appeal and who will ultimately buy it. Its user base can grow over time
through additional marketing, advertising, and word of mouth.
That's why businesses spend a lot of time and money in defining their ini-
tial target markets, and why they follow through with special offers, social
media campaigns, and specialized advertising.

What Are Market Segments?

Dividing a target market into segments means grouping the population ac-
cording to the key characteristics that drive their spending decisions. Some
of these are gender, age, income level, race, education level, religion, mar-
ital status, and geographic location.
Consumers with the same demographics tend to value the same products
and services, which is why narrowing down the segments is one of the
most important factors in determining target markets.
For example, people who fall into a higher income bracket may be more
likely to buy specialty coffee from Starbucks instead of Dunkin' Donuts.
The parent companies of both of these brands need to know that in order
to decide where to locate their stores, where to stock their products, and
where to advertise their brand.
 
A business may have more than one target market—a primary target
market, which is the main focus, and a secondary target market, which is
smaller but has growth potential. Toy commercials are targeted directly to
children. Their parents are the secondary market.

What is the Business Cycle ?

What Is A Business Cycle?
A business cycle is the natural expansion and contraction of economic growth
that occurs in a country over a span of time. It is also known as an economic
cycle or a trade cycle. It begins and ends with the rise and fall of a country's
gross domestic product (GDP). A trade cycle can also determine the rise and fall
of economic activity and stock prices.
Stages Of A Business Cycle
Business cycles might be as short as a few days or as long as a few years. The
time it takes to complete all five stages of a trade cycle becomes the trade
cycle's duration. The five stages of a trade cycle are as follows:
1. Expansion
The expansion stage is always the first stage of a trade cycle. There may be pos-
itive economic indicators at this stage, including income, employment, demand,
supply and profit growth. The frequency of investments increases as a company
grows, and both corporations and individuals repay their loans on time.
2. Peak
The trade cycle reaches its peak when the economy becomes saturated and up-
ward expansion can no longer persist. Wages, employment rates and the cost
of products and services have reached their maximum levels at this stage.
These economic indicators can reach a point where they may not increase fur-
ther. In anticipation of a drop in economic activity, many businesses and people
can review their budgets at this stage.
3. Contraction
Economic growth patterns may reverse as the economy contracts at the end of
the peak stage. There are two separate stages of contraction:
Recession
When the expansion phase of the economy finishes and economic activity falls,
the recession stage begins. It lasts until the GDP reaches the starting point of
the expansion stage. Demand may ‌fall almost immediately during a recession,
but producers may not adjust their output until the market supply is high. At
this moment, positive economic factors like prices and salaries may collapse.

Depression
When GDP falls below the pre-expansion level or the steady growth line, the de-
pression stage begins. Unemployment rates may skyrocket during a depres-
sion, while economic development slows down frequently. A depression lasts
until the economy can no longer fall any lower.
4. Trough
A trade cycle enters the trough stage when the depression stage reaches its
lowest point. The country may experience negative economic growth during
this time. Supply and demand may become as low as possible.
5. Recovery
The recovery stage begins when the economy's GDP reaches its lowest point in
the cycle. The economy may r‌ ebound and reverse unfavourable trends at this
point. When demand rises, so does supply. Investments may eventually re-
sume, and employment and output can ‌increase. The recovery period lasts until
the economy's growth rate recovers to a more consistent level. The current
trade cycle ends as it reaches this point, and a new one begins as it enters the
expansion stage.

Question : Explain Niche Marketing with examples.

Answer:
Have heard of “Jack of all trades and master of none”? It rightly emphasizes the
significance of specializing in a particular product, service, or market rather than
being a generalist. It is true while talking about the concept of Niche Marketing.
Niche marketing is targeting a defined segment of the population with a specific
product. Niche marketers focus only on one product or one target market instead
of focusing on general products.
Every business has a target audience, but within that target audience are smaller
subgroups of people that are defined by its own unique needs, preferences, or
identity that makes it different from the market at large. These smaller subgroups
are called niche markets and are a rich source of marketing opportunities. 
For instance, Coca-Cola markets Diet Coke as a niche product for a segmented
audience since it targets a specific group i.e. Health freaks.
Coca-Cola Diet Coke contributes more net profit than the classic coke. It is one of
the reasons why companies like IBM and Coca-Cola have changed their marketing
outlook from a single market to multitudes of smaller markets to realize more
profits. 
Nearly every market can be refined and a niche can be defined based on price,
demographics, geographics, and psychographics.
 

The niche marketing strategy can prove profitable to businesses as it:

 Enhances customer relationships
 Reduces competition as the product and services offered are quite
specific
 Increases visibility with unique product or service which stand out in
the market
 Word of mouth growth as the credibility and trust of the customers
remains with the product.
While on one hand niche marketing helps to stand out from the competition, it can
also sometimes results in increased competition in an already established profit-
able niche.
Launching products for millions of odd-great Indian middle-class was once the
dream of every marketer. But that class has now fragmented into individualistic
consumers who flaunt their respective differences.
The products like Calcium Sandoz Woman, Amul Calci+ milk, and Horlicks for wo-
men are prime examples of marketers finding niches, positioning these to educate
specifically women about the importance of them remaining fit for their families.
The consumers get hooked to these niche products that offer certain specific at-
tributes that are perceived to remain with them. It results in market expansion
along with an intact loyal customer base for that product.
For example, Raymond suiting, which is perceived to be a high-end, premium
product is for the upper-middle classes and the rich. 
Niche products will always make customers happy as it serves them with what
they want. More and more niche products and services will occupy shelves in the
years to come. Although technology and social media are bringing us closer to-
gether, it also means that the competition is growing stiff.
It is a worldwide market today, which is why if brands want to stand out among
the competitors, they need to find a niche.

Definition: Niche marketing is defined as channelling all marketing efforts towards one well-defined
segment of the population. There is one important thing to understand that ‘niche’ does not exist, but
is created by smart marketing techniques and identifying what the customer wants.
'Niche Marketing'

Please watch the video below for your reference for niche marketing.
https://youtu.be/nre-GqYSbG4

Description: Niche marketing is a marketing tactic deployed to target a specific market segment

which is unique. Niche market is often created by identifying what a customer wants and this can be
done if the company knows what the customer needs and then tries to deliver a better solution to a
problem which was not presented by other firms. A niche market does not mean a small market, but it
involves specific target audience with a specialized offering. By doing so, the company becomes a
market leader and it becomes possible for other firms to enter that particular segment. For example,
there are various cinema halls across India, but there are few which have recliner seats to offer. Not
everybody wants to watch a movie by paying 5x-6x times the cost of a normal ticket. Hence, the
target audience is very different and the hall is also only open at places where the company feels that
it would be able to tap into target audience especially in posh areas.

There are various advantages of niche marketing. One of the benefits of niche market is that there is
no or little competition under that segment. The company is virtually the market leader and enjoys
price monopoly. The another benefit is the strong relationship with the customers because of the fact
that the company operates in a small segment, the relationship between the company and the brand
becomes stronger which is also a key to customer loyalty. Niche businesses are often high margin
business. Customers do not mind paying a little extra because, they are only able to get that service in
that company or under its brand.

Question: Explain local marketing.

What is local marketing?

Local marketing—also referred to as local store marketing or neighbourhood marketing—
specifically targets the community around a physical store or restaurant. Promotional
messages are directed to the local population, rather than the mass market (See
also  community -marketing).
In practice, local marketing can take several forms. Many local businesses directly contact
consumers through mail, in-town events, local team sponsorships, or advertisements in the
town paper. Hoping to not only attract new customers but to drive repeat business, a
successful local marketing push allows a store to stake out a significant presence in local
consumers’ mental maps of their communities.
Who implements local marketing?
Local Marketing: General Specifications
 Customers: the population within 10 miles or 10 minutes of your door
 Competition: those businesses within 10 miles or 10 minutes of the above customers’ doors
 Store characteristics: location, size, atmosphere, immediate neighbours, ease and type of ac-
cess, etc.
Local marketing is used primarily by small businesses—stores and restaurants with a single
location or outlet. Owners of franchised businesses may also employ local marketing to
promote their specific locations, supplementing the larger franchise’s regional or national
marketing campaigns (which promote the franchise’s name and products, but not specific
locations).
For what kinds of customers is local marketing effective?
Local marketing allows a company to develop a repeat customer base in the immediate
vicinity of the business’s location. The standard radius of influence is about 10 miles, but
could be even less than that in more urban areas, where local traffic and neighbourhood
density is much higher. (See also close-range marketing)
People like to shop and eat near their homes; it saves time and is more
Local marketing refers to all the marketing actions used to reach a local target audi-
ence.
Have you noticed that when you search for a certain restaurant or store on your mo-
bile device, the first results that pop up are usually stores within your local area? This
powerful and convenient tool can be tapped into and used as part of a great market-
ing tactic. This is known as local marketing, and it is a great strategy for pulling in
local customers and nearby consumers.
Studies have shown that nearly half of people who search for a store or business will
actually visit that store or business on the same day. And those who do not visit the
store will remember it in their minds for a later time. Local marketing focuses mainly
on reaching local and loyal customers in a certain area, which is important for the
longevity and brand awareness of the business.

Question What is positioning?

What Is Positioning In Marketing?

Positioning refers to the place you want your brand or product to
have within a particular target market. More specifically, the process
of market positioning and brand positioning involves how you
market your brand or product to consumers to achieve that position.
The aim of positioning in marketing is to establish or sway how
consumers perceive you to gain a competitive advantage A great
positioning strategy elevates marketing efforts to help consumers
move from knowing about a brand to deciding to purchase a
product. And as positioning can sometimes be subtle, it’s usually
easier to detect when viewing from the same angle as a consumer.
For example, look at Burger King’s brilliant advertisement “Why eat
with the clown when you can dine with a king?”. Not only does it
suggest that Burger King has a higher class of dining experience
than McDonald’s, but it’s also an excellent example of how
positioning in marketing operates.
Positioning requires ongoing marketing initiatives for the brand,
which must also be maintained over the life of each product. Doing
this when running a business also reinforces the target market’s
perceptions of both the brand and the product.
Remember that every brand and product has a place somewhere
within the market, whether you cultivate your position or not. Once
you understand what is positioning in marketing, you can start
taking control of your brand’s reputation and product image.

Why Is Market Positioning Important?

Market positioning is a crucial element of any marketing plan

because it impacts all aspects of your business. When done
effectively, positioning quickly informs recipients of all of your
marketing messages everything they need to know about your
product, service, or brand. That’s why positioning should be the
foundation for everything to do with marketing.
Market positioning influences how your market sees your brand and
how you present your products to your target audience. It’s
fundamental for consumers to make purchasing choices out of the
complex array of offerings. It’s how businesses can compete within
a crowded marketplace for each customer’s attention, preference,
money, and ongoing loyalty.
Positioning is the single biggest influence on consumers deciding to
buy. Good positioning entices prospective customers to find out
more about your brand’s products. Great positioning entices
existing customers to continue purchasing your brand’s products.
Therefore, positioning strategies should always be connected
intimately to the whole concept of target markets.

Question-Explain product Life Cycle.

What Is the Product Life Cycle?
The term product life cycle refers to the length of time from when a product
is introduced to consumers into the market until it's removed from the
shelves. This concept is used by management and by marketing profes-
sionals as a factor in deciding when it is appropriate to increase advert-
ising, reduce prices, expand to new markets, or redesign packaging. The
process of strategizing ways to continuously support and maintain a
product is called product life cycle management.
KEY TAKEAWAYS
 A product life cycle is the amount of time a product goes from being
introduced into the market until it's taken off the shelves.
 There are four stages in a product's life cycle—introduction, growth,
maturity, and decline.
 A company often incurs higher marketing costs when introducing a
product to the market but experiences higher sales as product adop-
tion grows.
 Sales stabilize and peak when the product's adoption matures,
though competition and obsolescence may cause its decline.
 The concept of product life cycle helps inform business decision-
making, from pricing and promotion to expansion or cost-cutting.
0 seconds of 1 minute, 49 secondsVolume 75%
 
Product Life Cycle
How the Product Life Cycle Works
Products, like people, have life cycles. The life cycle of a product is broken
into four stages—introduction, growth, maturity, and decline.
A product begins with an idea, and within the confines of modern business,
it isn't likely to go further until it undergoes research and development and
is found to be feasible and potentially profitable. At that point, the product
is produced, marketed, and rolled out. Some product life cycle models in-
clude product development as a stage, though at this point, the product
has not yet been brought to customers.
As mentioned above, there are four generally accepted stages in the life
cycle of a product. Here are details about each one.
Introduction Stage
The introduction phase is the first time customers are introduced to the
new product. A company must generally include a substantial investment
in advertising and a marketing campaign focused on making consumers
aware of the product and its benefits, especially if it is broadly unknown
what the item will do.
During the introduction stage, there is often little-to-no competition for a
product, as competitors may just be getting a first look at the new offering.
However, companies still often experience negative financial results at this
stage as sales tend to be lower, promotional pricing may be low to drive
customer engagement, and the sales strategy is still being evaluated.
Growth Stage
If the product is successful, it then moves to the growth stage. This is char-
acterized by growing demand, an increase in production, and expansion in
its availability. The amount of time spent in the introduction phase before a
company's product experiences strong growth will vary from between in-
dustries and products.
During the growth phase, the product becomes more popular and recog-
nizable. A company may still choose to invest heavily in advertising if the
product faces heavy competition. However, marketing campaigns will likely
be geared towards differentiating its product from others as opposed to in-
troducing the goods to the market. A company may also refine its product
by improving functionality based on customer feedback.
Financially, the growth period of the product life cycle results in increased
sales and higher revenue. As competition begins to offer rival products,
competition increases, potentially forcing the company to decrease prices
and experience lower margins.
Maturity Stage
The maturity stage of the product life cycle is the most profitable stage, the
time when the costs of producing and marketing decline. With the market
saturated with the product, competition now higher than at other stages,
and profit margins starting to shrink, some analysts refer to the maturity
stage as when sales volume is "maxed out".
Depending on the good, a company may begin deciding how to innovate
its product or introduce new ways to capture a larger market presence.
This includes getting more feedback from customers, and researching their
demographics and their needs.
During the maturity stage, competition is at the highest level. Rival com-
panies have had enough time to introduce competing and improved
products, and competition for customers is usually highest. Sales levels
stabilize, and a company strives to have its product exist in this maturity
stage for as long as possible.
 
A new product needs to be explained, while a mature product needs to be
differentiated.
Decline Stage
As the product takes on increased competition as other companies emu-
late its success, the product may lose market share and begin its decline.
Product sales begin to drop due to market saturation and alternative
products, and the company may choose to not pursue additional marketing
efforts as customers may already have determined whether they are loyal
to the company's products or not.
Should a product be entirely retired, the company will stop generating sup-
port for it and will entirely phase out marketing endeavours. Alternatively,
the company may decide to revamp the product or introduce a next-gener-
ation, completely overhauled model. If the upgrade is substantial enough,
the company may choose to re-enter the product life cycle by introducing
the new version to the market.
The stage of a product's life cycle impacts the way in which it is marketed
to consumers. A new product needs to be explained, while a mature
product needs to be differentiated from its competitors.
Advantages of Using the Product Life Cycle
The product life cycle better allows marketers and business developers to
better understand how each product or brand sits with a company's portfo-
lio. This enables the company to internally shift resources to specific
products based on those products' positioning within the product life
cycleThe product life cycle naturally tends to have a positive impact on
economic growth, as it promotes innovation and discourages supporting
outdated products. As products move through the life cycle stages, com-
panies that use the product life cycle can realize the need to make their
products more effective, safer, efficient, faster, cheaper, or better suited to
client needs.

Question: Explain the concept of consumer behaviour.

What is Consumer Buying Behaviour?
Definition of Buying Behaviour:
Buying Behaviour is the decision processes and acts of people involved in buying
and using products.
Need to understand:
 why consumers make the purchases that they make?
 what factors influence consumer purchases?
 the changing factors in our society.
Consumer Buying Behaviour refers to the buying behaviour of the ultimate
consumer. A firm needs to analyse buying behaviour for:
 Buyers reactions to a firms marketing strategy has a great impact on the
firms success.
  The marketing concept stresses that a firm should create a Marketing Mix
(MM) that satisfies (gives utility to) customers, therefore need to analyse
the what, where, when and how consumers buy.
 Marketers can better predict how consumers will respond to marketing
strategies
Stages of the Consumer Buying Process
Six Stages to the Consumer Buying Decision Process (For complex decisions).
Actual purchasing is only one stage of the process. Not all decision processes lead
to a purchase. All consumer decisions do not always include all 6 stages,
determined by the degree of complexity...discussed next.
The 6 stages are:
1. Problem Recognition(awareness of need)--difference between the desired
state and the actual condition. Deficit in assortment of products. Hunger--
Food. Hunger stimulates your need to eat.
Can be stimulated by the marketer through product information--did not
know you were deficient? I.E., see a commercial for a new pair of shoes,
stimulates your recognition that you need a new pair of shoes.
2. Information search--
o Internal search, memory.
o External search if you need more information. Friends and relatives
(word of mouth). Marketer dominated sources; comparison shop-
ping; public sources etc.
A successful information search leaves a buyer with possible alternatives,
the evoked set.
Hungry, want to go out and eat, evoked set is
o chinese food
o indian food
o burger king
o klondike kates etc
3. Evaluation of Alternatives--need to establish criteria for evaluation, fea-
tures the buyer wants or does not want. Rank/weight alternatives or re-
sume search. May decide that you want to eat something spicy, indian gets
highest rank etc.
If not satisfied with your choice then return to the search phase. Can you
think of another restaurant? Look in the yellow pages etc. Information from
different sources may be treated differently. Marketers try to influence by
"framing" alternatives.
 4. Purchase decision--Choose buying alternative, includes product, package,
store, method of purchase etc.
5. Purchase--May differ from decision, time lapse between 4 & 5, product
availability.
6. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. Cognit-
ive Dissonance, have you made the right decision. This can be reduced by
warranties, after sales communication etc.
After eating an indian meal, may think that really you wanted a chinese
meal instead.

Question Explain moment of truths in marketing.

Less Than Zero Moment of Truth (<ZMOT)

One of the most recent additions to the scope of moments of truth, the Less Than Zero
Moment of Truth was coined  and designed to look at the absolute earliest instance of a
potential customer beginning their journey and interacting with a brand. At this moment,
something has happened in the life of a customer to become interested in a product or
service. While their research into a product is seen in the Zero Moment of Truth, the Less
Than Zero Moment happens before this research even begins. In this moment, a company
can actively reach out to a customer via social media, email marketing, advertisements
and more before the customer even comes to them for more information. While this
requires advanced targeting and monitoring of customer activities, this proactive strategy
can decrease the likelihood of an audience member choosing a competitor.
Zero Moment of Truth (ZMOT)

The idea of a Zero Moment of Truth is a more recent addition to the concept. ZMOT
was introduced by Google in order to match the modern online customer journey and
concerns the moment when a person begins searching for information regarding a
product or service that he or she is interested in. At this time, a customer will encounter
reviews and more information about the product before moving forward in the journey.
While companies will not be able to control all online reviews, they can positively
influence their online reputation through their interactions with the audience and the
quality of the product, which will lead to good reviews that can encourage people to
continue their journey with the brand.
First Moment of Truth (FMOT)

The FMOT, as first defined by Procter & Gamble, is centered on when a potential customer
encounters your product or service for the first time. Commonly, the FMOT only lasts for a
few seconds and can include the customer reading a description or hearing a pitch from a
representative in order to better understand how the product may serve his or her needs.
This immediate impression hinges on good presentation and the ability to clearly show
how the product will fulfill the needs of the audience. This brief moment will have a major
impact on whether a person will move forward with learning more about what your
company offers.
Second Moment of Truth (SMOT)

After first seeing the product, the audience will move on to the Second Moment of Truth.
Here, the customer truly experiences what your company is offering. This can occur before
purchasing the product, such as experiencing a hands-on demonstration of a new phone,
but may also happen after a purchase, which occurs frequently in the modern age of
online shopping where a customer does not truly experience the product until after it
arrives. While a SMOT that occurs before purchase will have a greater influence on
whether a customer will pay for a service or product, a SMOT that happens afterward will
still have a major impact on their satisfaction and continuing relationship with a brand,
which can affect reputation and audience reach.
Ultimate Moment of Truth (UMOT)

Also known as the Third Moment of Truth, the UMOT is centered on feedback from
customers concerning the product. While not an original part of the moments of truth, this
third moment was soon added by Procter & Gamble after the first two were defined. The
product’s ability to fulfill the needs of the customer, as well as the company’s efforts to
provide an enjoyable experience along the way to purchasing it, will shape the audience’s
emotional response to what they have received. During the UMOT, a customer may
choose to share their opinions on the service with the company that provided it, write a
review online and give their opinions to family, friends and colleagues. These takeaways
will influence whether they become a return customer and is known as the Ultimate
Moment because it may become the Zero Moment of Truth for other people in the future.

Question: What is impulse buying

Impulse buying or impulse purchase is the buying of a product on the spur of the
moment. In other words, the person had not planned to purchase that product, i.e.,
they decided without any premeditation. Impulse buying is all
about emotions and feelings rather than logic and planning. The person’s sudden
decision to purchase something is the result of suddenly seeing the product.

Impulse buying may also be due to exposure to an extremely effective promotional

message.

Impulse purchases occur with a wide range of products. The consumer may
suddenly decide to buy, for example, a chocolate, a pair of shoes, a scarf, a work of
art, or even a car.

Sometimes, the action leads to problems such as feelings of guilt, disapproval by

family and friends, or financial difficulties.
Develop Good Habits says the following regarding impulse buying:

“The impulse buy is a weakness that may succumb to. No matter how frugal you
tend to be, sometimes it is difficult to resist making an impulse purchase.”

“Giving in to impulse buying is not only hard on your wallet in the short term, but the
habit prevents you from developing good financial practices in the long term.”

If humans were not susceptible to impulse buying, many businesses today would not exist.

Impulse buying and marketers

Retailers and marketers exploit impulse buyers or impulse purchasers, whose
desire for instant gratification boosts their revenue.
Marketers of chewing gum, mints, candy, and chocolate get a considerable
proportion of their sales from impulse purchases.

In supermarkets, for example, they place their goods prominently at the checkout
aisles. Shoppers see them and make instant, i.e., spur of the moment, shopping
decisions.

We also find these goods near the cash tills at filling stations and 24×7 stores.

Standing next to many adults are their backup impulse buyers, i.e., their children.
Nobody’s desire for instant gratification is stronger than that of a child.

Impulse buying and emotions

Emotions and feelings drive all impulse purchases. None of them have anything to
do with sensible thinking and logical planning.

Marketers are aware of this. They study the psychology of the human being,
especially our feelings, and exploit them.

Sports fans may suddenly feel the urge to buy something because it displays their
national flag. The urge to buy is particularly strong if their country’s team is playing in
a major international championship.

For example, during the FIFA World Cup football (soccer) tournament, hundreds of
products globally magically have the national flag painted or printed on them.

Seeing your national flag triggers passion. Passion is a strong emotion, and strong
emotions drive impulse purchases.

Question Explain the service Marketing Mix

The 7 P’s of Services Marketing

The first four elements in the services marketing mix are the same as those in the
traditional marketing mix. However, given the unique nature of services, the implications of
these are slightly different in case of services.
1. Product: In case of services, the ‘product’ is intangible, heterogeneous and perish-
able. Moreover, its production and consumption are inseparable. Hence, there is
scope for customizing the offering as per customer requirements and the actual
customer encounter therefore assumes particular significance. However, too much
customization would compromise the standard delivery of the service and adversely
 affect its quality. Hence particular care has to be taken in designing the service offer-
ing.
2. Pricing: Pricing of services is tougher than pricing of goods. While the latter can be
priced easily by taking into account the raw material costs, in case of services at-
tendant costs - such as labor and overhead costs - also need to be factored in. Thus
a restaurant not only has to charge for the cost of the food served but also has to
calculate a price for the ambience provided. The final price for the service is then ar-
rived at by including a mark up for an adequate profit margin.
3. Place: Since service delivery is concurrent with its production and cannot be stored
or transported, the location of the service product assumes importance. Service
providers have to give special thought to where the service would be provided.
Thus, a fine dine restaurant is better located in a busy, upscale market as against on
the outskirts of a city. Similarly, a holiday resort is better situated in the countryside
away from the rush and noise of a city.
4. Promotion: Since a service offering can be easily replicated promotion becomes
crucial in differentiating a service offering in the mind of the consumer. Thus, ser-
vice providers offering identical services such as airlines or banks and insurance
companies invest heavily in advertising their services. This is crucial in attracting cus-
tomers in a segment where the services providers have nearly identical offerings.

We now look at the 3 new elements of the services marketing mix - people,
process and physical evidence - which are unique to the marketing of services.

5. People: People are a defining factor in a service delivery process, since a service is

inseparable from the person providing it. Thus, a restaurant is known as much for
its food as for the service provided by its staff. The same is true of banks and de-
partment stores. Consequently, customer service training for staff has become a top
priority for many organizations today.
6. Process: The process of service delivery is crucial since it ensures that the same
standard of service is repeatedly delivered to the customers. Therefore, most com-
panies have a service blue print which provides the details of the service delivery
process, often going down to even defining the service script and the greeting
phrases to be used by the service staff.
7. Physical Evidence: Since services are intangible in nature most service providers
strive to incorporate certain tangible elements into their offering to enhance cus-
tomer experience. Thus, there are hair salons that have well designed waiting areas
often with magazines and plush sofas for patrons to read and relax while they await
their turn. Similarly, restaurants invest heavily in their interior design and decora-
tions to offer a tangible and unique experience to their guests.

What is consumer behavior?

Consumer behavior is how people feel and think when they are deciding
whether to buy a product. In the study of consumer behavior, researchers
might examine what people buy, when and how often they buy it, where they
usually buy it, why they buy it and more.
What is consumer behavior?
Consumer behavior is how people feel and think when they are deciding
whether to buy a product. In the study of consumer behavior, researchers
might examine what people buy, when and how often they buy it, where they
usually buy it, why they buy it and more.
Knowing the competition
If consumers are purchasing from a business's competitors, the business can
improve its performance by studying consumer behavior. It can ask, "Which de-
mands do competitors satisfy that we don't?" When it knows the answer to that
question, the business can address their gap and give consumers a reason to
consider their goods rather than those of competitors.
Understanding differentiation
In marketing, differentiation refers to the act of distinguishing consumer types
and grouping them by common characteristics. Each group is part of a busi-
ness's target audience but has needs or exhibits behaviors that differ from
those of other groups. Understanding these different needs and behaviors can
help businesses create multiple strategies to appeal to the various differenti-
ated groups and also provide tailored customer service to each consumer type.
Allowing for trend forecasting
Because consumer behavior studies examine what consumers buy and why
they buy it, researchers can see when their buying behaviors change. These
changes in behavior can signal a change in buying trends, which is information
that can help businesses predict the kinds of goods that consumers may buy in
the future.
Promoting retention and innovation
Knowing what consumers like can help a business decide what to keep the
same and what to change. If a product has a consistently large market share
among consumers, that's a sign that the product is satisfying a demand and
should remain unchanged. Likewise, this data can also show the consumer
types who dislike the product and what products they prefer.
There are four types of consumer behaviour categorised by their level of
involvement in a purchase. These are: Complex buying behaviour
Dissonance-reducing buying behaviour Habitual buying behaviour Variety-
seeking buying behaviour Complex Buying Behaviour