Unit 1

1. Difference between sales and marketing

Answer Marketing is the systematic planning, implementation and control of business activities to
bring together buyers and sellers.

A sale a transaction between two parties where the buyer receives goods (tangible or intangible),
services and/or assets in exchange for money.

Approach Broader range of activities to sell product/service, client relationship etc.; determine
future needs and

has a strategy in place to meet those needs for the long term relationship.

Make customer demand match the products the company currently offers.

Process Analysis of market, distribution channels, Usually one to competitive products and services;
Pricing one

strategies; Sales tracking and market share analysis;

Budget

Focus Overall picture to promote, distribute, price Fulfill sales products/services; fulfill
customer's wants and needs volume objectives through products and/or services the company can

offer.

Marketing

Sales

Scope

Market research; Advertising; Sales; Public relations; Customer service and satisfaction .

Once a product has been created for a customer need, persuade the customer to purchase the
product to fulfill her needs

Short term Push

Horizon Strategy Pull

Longer term

Priority Marketing shows how to reach to the Customers and Selling is the build long lasting
relationship ultimate result of

marketing.

Identity

Marketing targets the construction of a brand identity so that it becomes easily associated with need
fulfillment.
Sales is the strategy of meeting needs in an opportunistic, individual method, driven by human
interaction. There's no premise of brand identity, longevity or continuity. It's simply the ability to
meet a need at the right time.

2. Difference between goods and services

Answer

BASIS FOR COMPARISON

GOODS SERVICES

Meaning

Goods are the material items that can be seen, touched or felt and are ready for sale to the
customers.

Services are amenities, facilities, benefits or help provided by other people.

Nature

Tangible Intangible

Transfer of ownership

Yes No

Evaluation

Very simple and easy Complicated

Return

Goods can be returned. Services cannot be returned back once they are

provided.

Separable

Yes, goods can be separated No, services cannot be from the seller. separated from the service

provider.

Variability

Identical Diversified

BASIS FOR COMPARISON

GOODS SERVICES

Storage

Goods can be stored for use in Services cannot be stored. future or multiple use.

Production and Consumption

 There is a time lag between production and consumption of goods.

Production and Consumption of services occurs simultaneously.

3. Short note on service gap

Answer The Gap Model of Service Quality

The Gap Model of Service Quality (aka the Customer Service Gap Model or the 5 Gap Model) is a
framework which can help us to understand customer satisfaction.

In the Gap Model of Service Quality, customer satisfaction is largely a function of perception. If the
customer perceives that the service meets their expectations then they will be satisfied. If not,
they’ll be dissatisfied. If they are dissatisfied then it will be because of one of the five customer
service “gaps” shown below.

Service Gap Model Example

As we explain the Gap Model concept we’ll use two example companies to show how each gap
might manifest itself in two very different companies. The two example companies we’ll consider
are Netflix and Pizzahut.

The Gap Model of Service Quality

The diagram below shows a visual representation of the Gap Model of Service Quality.

4. Explain 6 S of service encounter

Answer The McKinsey 7S model is a useful framework for reviewing an organization’s marketing
capabilities from different viewpoints. Developed by Tom Peters and Robert Waterman during their
tenure at McKinsey & Company in the 1970s, this model works well in different types of business of
all sectors and sizes, although it works best in medium and large businesses. The 7S model can be
used to: • Review the effectiveness of an organization in its marketing operations. • Determine how
to best realign an organization to support a new strategic direction. • Assess the changes needed to
support digital transformation of an organization. What are the elements of the McKinsey 7S model?
In summary, the McKinsey 7Ss stand for: • Strategy: The definition of key approaches for an
organization to achieve its goals. • Structure: The organization of resources within a company into
different business groups and teams. • Systems: Business processes and the technical platforms
used to support operations. • Staff: The type of employees, remuneration packages and how they
are attracted and retained. • Skills: Capabilities to complete different activities. • Style: The culture
of the organization in terms of leadership and interactions between staff and other stakeholders. •
Shared Values: Summarized in a vision and or mission, this is how the organization defines its reason
for existing. These components can be further broken down into ‘hard’ and ‘soft’ elements. Soft
elements: Staff, Skills, Style, Shared Values As hard elements provide the framework of how a
company operates, soft elements are the less tangible qualities that a company demonstrates
through its work. They are the people that comprise the workforce, the skills they offer, the office
culture that evolves from their co-operation with different teams, and the combined outward
impression they give the world. Think of it like this – hard elements answer many ‘what’ questions
about a business: • Strategy: What is the company’s driving strategy? • Structure: What teams are in
place? • Systems: What formal systems ensure work progresses? Whereas soft elements answer
many ‘who’ and ‘how’ questions about a business: • Staff: Who comprises the company’s
workforce? • Skills: How skilled are these workers? • Style: How do organizational leaders inspire
their colleagues? • Shared Values: How does the company demonstrate its core values?

5. Short note on marketing evaluation

Answer

6. Characteristics of service marketing

Answer
Features of Services: 1. Intangibility: A physical product is visible and concrete. Services are
intangible. The service cannot be touched or viewed, so it is difficult for clients to tell in
advance what they will be getting. For example, banks promote the sale of credit cards by
emphasizing the conveniences and advantages derived from possessing a credit card.

2. Inseparability: Personal services cannot be separated from the individual. Services are
created and consumed simultaneously. The service is being produced at the same time that
the client is receiving it; for example, during an online search or a legal consultation. Dentist,
musicians, dancers, etc. create and offer services at the same time.

3. Heterogeneity (or variability): Services involve people, and people are all different. There
is a strong possibility that the same enquiry would be answered slightly differently by
different people (or even by the same person at different times). It is important to minimize
the differences in performance (through training, standard setting and quality assurance).
The quality of services offered by firms can never be standardized.

4. Perishability: Services have a high degree of perishability. Unused capacity cannot be

stored for future use. If services are not used today, it is lost forever. For example, spare
seats in an aeroplane cannot be transferred to the next flight. Similarly, empty rooms in five-
star hotels and credits not utilized are examples of services leading to economic losses. As
services are activities performed for simultaneous consumption, they perish unless
consumed.

5. Changing demand: The demand for services has wide fluctuations and may be seasonal.
Demand for tourism is seasonal, other services such as demand for public transport, cricket
field and golf courses have fluctuations in demand.

7. Pricing of services: Quality of services cannot be standardized. The pricing of services are
usually determined on the basis of demand and competition. For example, room rents in
tourist spots fluctuate as per demand and season and many of the service providers give
off-season discounts.

8. Explain 7 stages of market segmentation

Or
Explain the various component of marketing plan in detail,
 Answer
Seven Essential Components to a Marketing Plan Here are the essential components of a
marketing plan that keeps the sales pipeline full.

1. Market research. Research is the backbone of the marketing plan. Your local library is a
great place to start, offering reports like Standard & Poors or IBISWorld. Some library cards
even allow access to online services from home. Identify consumer buying habits in the
industry, market size, market growth or decline, and any current trends.

2. Target market. A well-designed target market description identifies your most likely
buyers. In addition, you should discuss at least two or three levels of segmentation. A
language tutoring business might target both students and foreignborn employees who
want to improve their English.

3. Positioning. What is the perception of your brand in the marketplace? For example, if
your restaurant sells burgers, do customers see you as the place to go for gluten-free or
healthy options or the place to go if you’ve got an appetite for a double cheeseburger? The
difference in how the target market sees you is your positioning. Develop compelling
branding and marketing messages that clearly communicate how you want to be perceived.

4. Competitive analysis. You need to know who your competitors are and how your products
and services are different. What is the price point at which your competitors are selling, and
what segment of the market are they aiming to reach? Knowing the ins and outs of your
competitors will help you better position your business and stand out from the competition.

5. Market strategy. Your marketing strategy is your path to sales goals. Ask yourself “How
will I find and attract my most likely buyers?” This is the core of what the strategy should
explain. It should look at the entire marketplace and then break down specific tactics
including such as events, direct mail, email, social media, content strategy, street teams,
couponing, webinars, seminars, partnerships, and other activities that will help you gain
access to customers.

6. Budget. Develop a month-by-month schedule of what you plan to spend on marketing.

Also include a “red light” decision point. For each activity, establish a metric that tells you to
stop if it’s not generating sufficient return on investment (ROI).

7. Metrics. Track your marketing success with Google Analytics for website conversions and
a simple Excel sheet to compare your budget against the actual ROI. Test programs over the
course of a 30- to 60-day period, and evaluate the results. Repeat any programs that are
delivering sales or sign-ups to your email list, and get rid of anything that’s not.

9. Market segmentation types

Answer The Four Types of Market Segmentation

The four bases of market segmentation are:

• Demographic segmentation
• Psychographic segmentation

• Behavioral segmentation

• Geographic segmentation

Within each of these types of market segmentation, multiple sub-categories further classify
audiences and customers.

Demographic Segmentation

Demographic segmentation is one of the most popular and commonly used types of market
segmentation. It refers to statistical data about a group of people.

Demographic Market Segmentation Examples

• Age

• Gender

• Income

• Location

• Family Situation

• Annual Income

• Education

• Ethnicity

Where the above examples are helpful for segmenting B2C audiences, a business might use the
following to classify a B2B audience:

• Company size

• Industry

• Job function

Because demographic information is statistical and factual, it is usually relatively easy to uncover
using various sites for market research.

A simple example of B2C demographic segmentation could be a vehicle

manufacturer that sells a luxury car brand (ex. Maserati). This company would likely target an
audience that has a higher income.

Another B2B example might be a brand that sells an enterprise marketing platform. This brand
would likely target marketing managers at larger companies (ex. 500+ employees) who have the
ability to make purchase decisions for their teams.

Psychographic Segmentation

Psychographic segmentation categorizes audiences and customers by factors that relate to their
personalities and characteristics.
Psychographic Market Segmentation Examples

• Personality traits

• Values

• Attitudes

• Interests

• Lifestyles

• Psychological influences

• Subconscious and conscious beliefs

• Motivations

• Priorities

Psychographic segmentation factors are slightly more difficult to identify than demographics
because they are subjective. They are not data-focused and require research to uncover and
understand.

For example, the luxury car brand may choose to focus on customers who value

quality and status. While the B2B enterprise marketing platform may target marketing managers
who are motivated to increase productivity and show value to their executive team.

Behavioral Segmentation

While demographic and psychographic segmentation focus on who a customer

is, behavioral segmentation focuses on how the customer acts. Behavioral Market Segmentation
Examples

• Purchasing habits

• Spending habits

• User status

• Brand interactions

Behavioral segmentation requires you to know about your customer’s actions. These activities may
relate to how a customer interacts with your brand or to other activities that happen away from
your brand.

A B2C example in this segment may be the luxury car brand choosing to target customers who have
purchased a high-end vehicle in the past three years. The B2B marketing platform may focus on
leads who have signed up for one of their free webinars.

Geographic Segmentation

Geographic segmentation is the simplest type of market segmentation. It

categorizes customers based on geographic borders.

Geographic Market Segmentation Examples

• ZIP code

• City

• Country

• Radius around a certain location

• Climate

• Urban or rural

Geographic segmentation can refer to a defined geographic boundary (such as a city or ZIP code) or
type of area (such as the size of city or type of climate).

An example of geographic segmentation may be the luxury car company

choosing to target customers who live in warm climates where vehicles don’t need to be equipped
for snowy weather. The marketing platform might focus

their marketing efforts around urban, city centers where their target customer is likely to work

10. Degmographic,geographical,psychographical segmentation

Answer same as above

11. Short note on target market

Answer

Target market involves breaking a market into segments and then concentrating your marketing
efforts on one or a few key segments consisting of the customers whose needs and desires most
closely match your product or service offerings. It can be the key to attracting new business,
increasing sales, and making your business a success.

The beauty of target marketing is that aiming your marketing efforts at specific groups of consumers
makes the promotion, pricing, and distribution of your products and/or services easier and more
cost effective and provides a focus to all

of your marketing activities.

For instance, suppose a catering business offers catering services in the client’s home. Instead of
advertising via a newspaper insert that goes out to everyone, the caterer would first identify the
target market for its services. It could then target the desired market with a direct mail campaign,
flyer delivery in a particular

residential area, or a Facebook ad aimed at customers in a specific area, thereby increasing its
return on investment in marketing and bringing in more customers

12. Type of positioning strategy

Answer There are seven approaches to positioning strategies:

1) Using Product characteristics or Customer Benefits as a positioning strategy

This strategy basically focuses upon the characteristics of the product or customer benefits. For
example if I say Imported items it basically tell or illustrate a variety of product characteristics such
as durability, economy or reliability etc. Lets take an example of motorbikes some are emphasizing
on fuel economy, some on power, looks and others stress on their durability. Hero Cycles Ltd.
positions first,

emphasizing durability and style for its cycle.

At time even you would have noticed that a product is positioned along two or more product
characteristics at the same time. You would have seen this in the case of toothpaste market, most
toothpaste insists on ‘freshness’ and ‘cavity fighter’ as

the product characteristics. It is always tempting to try to position along several product
characteristics, as it is frustrating to have some good characteristics that are not communicated.

2) Pricing as a positioning strategy

Quality Approach or Positioning by Price-Quality – Lets take an example and understand this
approach just suppose you have to go and buy a pair ofjeans, as soon as you enter in the shop you
will find different price rage jeans in the showroom say price ranging from 350 rupees to 2000
rupees. As soon as look at the jeans of 350

Rupees you say that it is not good in quality.

Why? Basically because of perception, as most of us perceive that if a product is expensive will be a
quality product where as product that is cheap is lower in quality. If we look at this Price – quality
approach it is important and is largely used in product positioning. In many product categories, there
are brands that deliberately attempt to offer more in terms of service, features or performance.
They charge more, partly to cover higher costs and partly to let the consumers believe that the
product is, certainly of higher quality.

3) Positioning strategy based on Use or Application

Lets understand this with the help of an example like Nescafe Coffee for many years positioned it
self as a winter product and advertised mainly in winter but the

introduction of cold coffee has developed a positioning strategy for the summer months also.

Basically this type of positioning-by-use represents a second or third position for the brand, such
type of positioning is done deliberately to expand the brand’s market. If you are introducing new
uses of the product that will automatically expand the brand’s market.

4) Positioning strategy based on Product Process

Another positioning approach is to associate the product with its users or a class of users. Makes of
casual clothing like jeans have introduced ‘designer labels’ to develop a fashion image. In this case
the expectation is that the model or personality will influence the product’s image by reflecting the
characteristics and image of the
model or personality communicated as a product user.

Lets not forget that Johnson and Johnson repositioned its shampoo from one used for babies to one
used by people who wash their hair frequently and therefore need a mild people who wash their
hair frequently and therefore need a mild shampoo. This repositioning resulted in a market share.

5) Positioning strategy based on Product Class

In some product class we have to make sure critical positioning decisions For

example, freeze dried coffee needed to positions itself with respect to regular and instant coffee
and similarly in case of dried milk makers came out with instant breakfast positioned as a breakfast
substitute and virtually identical product positioned as a dietary meal substitute.

6) Positioning strategy based on Cultural Symbols

In today’s world many advertisers are using deeply entrenched cultural symbols to differentiate their
brands from that of competitors. The essential task is to identify something that is very meaningful
to people that other competitors are not using and associate this brand with that symbol.

Air India uses maharaja as its logo, by this they are trying to show that we welcome guest and give
them royal treatment with lot of respect and it also highlights Indian

tradition. Using and popularizing trademarks generally follow this type of positioning.

7) Positioning strategy based on Competitors

In this type of positioning strategies, an implicit or explicit frame of reference is one or more
competitors. In some cases, reference competitor(s) can be the dominant aspect of the positioning
strategies of the firm, the firm either uses the same of similar positioning strategies as used by the
competitors or the advertiser uses a new

strategy taking the competitors’ strategy as the base.

A good example of this would be Colgate and Pepsodent. Colgate when entered into the market
focused on to family protection but when Pepsodent entered into the market with focus on 24 hour
protection and basically for kids, Colgate changed its focus from family protection to kids teeth
protection which was a positioning strategy adopted because of competition.

13. Define consumer behaviour and factor influencing it ( 1 social cultural personal)
Answer
Consumer behaviour is the study of how individual customers, groups or organizations
select, buy, use, and dispose ideas, goods, and services to satisfy their needs and wants. It
refers to the actions of the consumers in the marketplace and the underlying motives for
those actions. Consumer behavior is the study of consumers and the processes they use to
choose, use (consume), and dispose of products and services, including consumers’
emotional, mental, and behavioral responses. Consumer behavior incorporates ideas from
several sciences including psychology, biology, chemistry, and economics.
The factors which influence consumer behaviour A large number of factors influence our
behaviour. Kotler and Armstrong (2008) classify these as:
1. Psychological (motivation, perception, learning, beliefs and attitudes)
 2. Personal (age and life-cycle stage, occupation, economic circumstances, lifestyle,
personality and self concept)
3. Social (reference groups, family, roles and status)
4. Cultural (culture, subculture, social class system).

1. Psychological Factors Human psychology is a major determinant of consumer behavior.

These factors are difficult to measure but are powerful enough to influence a buying
decision. Some of the important psychological factors are:

2. Social Factors Humans are social beings and they live around many people who influence
their buying behavior. Human try to imitate other humans and also wish to be socially
accepted in the society. Hence their buying behavior is influenced by other people around
them. These factors are considered as social factors. Some of the social factors are:
Reference Groups Roles and status Family

3. Cultural factors A group of people are associated with a set of values and ideologies that
belong to a particular community. When a person comes from a particular community,
his/her behavior is highly influenced by the culture relating to that particular community.
Some of the cultural factors are: Social Class Subculture Culture

4. Personal Factors Factors that are personal to the consumers influence their buying
behavior. These personal factors differ from person to person, thereby producing different
perceptions and consumer behavior. Some of the personal factors are: i. Age Income
Occupation

5.Economic Factors The consumer buying habits and decisions greatly depend on the
economic situation of a country or a market. When a nation is prosperous, the economy is
strong, which leads to the greater money supply in the market and higher purchasing power
for consumers. When consumers experience a positive economic environment, they are
more confident to spend on buying products. Whereas, a weak economy reflects a struggling
market that is impacted by unemployment and lower purchasing power. Economic factors
bear a significant influence on the buying decision of a consumer. Some of the important
economic factors are: i. Personal Income Family Income Consumer Credit Savings
14. What are different stages of purchase behaviour
Answer
The five stages framework remains a good way to evaluate
the customer’s buying process. John Dewey first introduced the following five stages in
1910:
1. Problem/need recognition
This is often identified as the first and most important step in the customer’s decision
process. A purchase cannot take place without the recognition of the need. The need may
have been triggered by internal stimuli (such as hunger or thirst) or external stimuli (such as
advertising or word of mouth).
2. Information search
Having recognised a problem or need, the next step a customer may take is the information
search stage, in order to find out what they feel is the best solution. This is the buyer’s effort
to search internal and external business environments, in order to identify and evaluate
 information sources related to the central buying decision. Your customer may rely on print,
visual, online media or word of mouth for obtaining information.
3. Evaluation of alternatives
As you might expect, individuals will evaluate different products or brands at this stage on
the basis of alternative product attributes – those which have the ability to deliver the
benefits the customer is seeking. A factor that heavily influences this stage is the customer’s
attitude. Involvement is another factor that influences the evaluation process. For example,
if the customer’s attitude is positive and
involvement is high, then they will evaluate a number of companies or brands; but if it is
low, only one company or brand will be evaluated.

4. Purchase decision
The penultimate stage is where the purchase takes place. Philip Kotler (2009) states that the
final purchase decision may be ‘disrupted’ by two factors: negative feedback from other
customers and the level of motivation to accept the feedback. For example, having gone
through the previous three stages, a customer chooses to buy a new telescope. However,
because his very good friend, a keen astronomer, gives him negative feedback, he will then
be bound to change his preference.
Furthermore, the decision may be disrupted due to unforeseen situations such as a sudden
job loss or relocation.
5. Post-purchase behaviour
In brief, customers will compare products with their previous expectations and will be either
satisfied or dissatisfied. Therefore, these stages are critical in retaining customers. This can
greatly affect the decision process for similar purchases from the same company in the
future, having a knock-on effect at the information search stage and evaluation of
alternatives stage. If your customer is satisfied, this will result in brand loyalty, and the
Information search and Evaluation of alternative stages will often be fast-tracked or skipped
altogether.
15. Explain 5 stage in purchase behaviour
Same as above
16. In hospitality describe the feature of the guest of tomorrow or the guest of future
Answer

The "guest of tomorrow" or "guest of the future" in the hospitality industry refers to a
hypothetical customer persona who is expected to become more prevalent in the coming
years as the travel and tourism landscape continues to evolve. This type of guest is often
characterized by their unique preferences, needs, and expectations, which are influenced by
factors such as technological advancements, changing travel patterns, and evolving societal
norms.

Some of the key features of the guest of tomorrow include:

Tech-savvy: The guest of tomorrow is expected to be highly tech-savvy and digitally

connected, with a preference for using technology to research, book, and manage their
travel arrangements.
Personalized experiences: This type of guest is likely to expect personalized experiences that
are tailored to their specific needs and preferences, such as customized recommendations
for dining and entertainment options.
 Sustainable and eco-conscious: The guest of tomorrow is expected to be environmentally
conscious and seek out eco-friendly travel options and accommodations.
Socially responsible: This type of guest is likely to value social responsibility and may seek
out hotels and brands that align with their values in areas such as diversity, equity, and
inclusion.
Authenticity: The guest of tomorrow is likely to seek out authentic travel experiences that
allow them to connect with the local culture and community.
Convenience: This type of guest values convenience and efficiency, and may expect hotels to
offer streamlined check-in processes, digital room keys, and other time-saving amenities.
Overall, the guest of tomorrow represents a new set of challenges and opportunities for the
hospitality industry, as hotels and other travel brands seek to meet the evolving needs and
expectations of this increasingly important customer segment.

17. Benefits of E marketing

Answer
Benefits of e-marketing include:
• Global reach - a website allows you to find new markets and trade globally for only a small
investment.
• Lower cost - a well-planned e-marketing campaign can reach the right customers at a
much lower cost than traditional marketing methods.
• Trackable, measurable results - web analytics and other online metric tools make it easier
to establish how effective your campaign has been. You can get detailed information about
how customers use your website or respond to your advertising.
• 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 you can refine your customer profile and market effectively to them.
• Openness - by having a social media presence and managing it carefully, you
can build customer loyalty and create a reputation for being easy to engage with.

• Social currency - e-marketing lets you create campaigns using different types of rich
media. On the internet these campaigns 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 completing a purchase.

18. Advantages and disadvantages of E marketing

Answer advantages same as benefits given above

Some of the main disadvantages of e-marketing include:

Limited audience: While the internet has a vast audience, not everyone has access to it. This
means that e-marketing may not be effective for targeting certain groups of consumers,
such as those who are not internet-savvy or who live in areas with limited internet access.
Information overload: The internet is flooded with information, and it can be difficult for
businesses to stand out among the noise. Consumers may be bombarded with so many
messages that they tune out marketing efforts altogether.
 Dependence on technology: E-marketing relies heavily on technology, and if there is a
problem with the technology (such as a server crash or a power outage), it can disrupt
marketing efforts and lead to lost sales.
Security concerns: Consumers are becoming increasingly concerned about the security of
their personal information online. If a business experiences a data breach or other security
issue, it can damage the trust that consumers have in the brand.
Difficulty in building relationships: E-marketing can make it difficult to build strong
relationships with customers, as it is often a one-way communication channel. This can
make it challenging to establish trust and loyalty, which are crucial for long-term business
success.
Limited creativity: E-marketing channels such as email and social media often have strict
guidelines and formatting restrictions, which can limit the creativity of marketers and make
it difficult to stand out from the competition.
Overall, while e-marketing can be an effective tool for reaching consumers, it is important to
consider these potential disadvantages and develop strategies to overcome them.

19. Different ways to conduct online marketing or E marketing

Answer
There are numerous ways to conduct online marketing, also known as digital marketing,
including:

Search engine optimization (SEO): SEO involves optimizing a website's content and structure
to improve its search engine rankings, driving organic traffic to the site.
Pay-per-click advertising (PPC): PPC involves placing ads on search engines or social media
platforms and paying for each click on the ad, driving traffic to the website.
Social media marketing: Social media marketing involves using social media platforms like
Facebook, Twitter, and Instagram to connect with customers, build brand awareness, and
drive traffic to the website.
Email marketing: Email marketing involves sending promotional messages and newsletters
to customers who have opted-in to receive communications from the business, nurturing
leads and driving conversions.
Content marketing: Content marketing involves creating and sharing valuable, relevant, and
engaging content, such as blog posts, videos, and infographics, to attract and retain a target
audience.
Influencer marketing: Influencer marketing involves partnering with social media influencers
who have a large and engaged following, to promote a brand's products or services.
Affiliate marketing: Affiliate marketing involves partnering with other businesses or
individuals to promote a brand's products or services, earning a commission for each sale
generated through their referral link.
Mobile marketing: Mobile marketing involves optimizing a website or ad campaign for
mobile devices, such as smartphones and tablets, to reach customers on the go.
These are just a few examples of the many ways to conduct online marketing, and
businesses can use a combination of these tactics to achieve their marketing objectives.

20. Objective of E marketing

Answer
The main objectives of e-marketing, also known as digital marketing, include:
 Increase online visibility: E-marketing aims to increase the online visibility of a brand,
product or service by improving its search engine rankings, running online advertising
campaigns, and promoting the brand on social media platforms.
Drive traffic to the website: E-marketing seeks to drive traffic to a website, landing page or
e-commerce store through various online channels like search engines, social media
platforms, email marketing, and digital advertising.
Generate leads and conversions: E-marketing aims to generate leads by capturing the
contact information of potential customers and nurture them through the sales funnel,
ultimately leading to conversions or sales.
Build brand awareness: E-marketing can help to build brand awareness by promoting a
brand's values, vision, and mission on social media platforms and other digital channels.
Enhance customer engagement: E-marketing seeks to engage with customers by providing
them with valuable content, personalized communication, and responsive customer service.
Monitor and analyze performance: E-marketing allows businesses to monitor and analyze
the performance of their online campaigns, enabling them to make data-driven decisions
and optimize their marketing efforts for better results.
Overall, the primary objective of e-marketing is to leverage digital channels to increase
brand visibility, drive traffic, generate leads, enhance customer engagement, and ultimately
boost sales and revenue

21. Short note on E commerce

Answer

E-commerce, or electronic commerce, refers to the buying and selling of products or services over
the internet. It involves a variety of activities such as online shopping, online banking, online ticket
booking, and online auctions.

E-commerce has become an increasingly important part of the global economy, allowing businesses
of all sizes to reach a wider audience and expand their customer base beyond geographical
boundaries. E-commerce platforms allow businesses to create an online storefront where customers
can browse and purchase products or services, make secure payments, and track their orders.

The benefits of e-commerce include:

Increased reach: E-commerce allows businesses to reach a global audience without the limitations of
geographic location, enabling them to expand their customer base and increase revenue.

Cost-effective: E-commerce reduces overhead costs associated with traditional brick-and-mortar

stores, such as rent, utilities, and staffing, making it an affordable option for small businesses.

Convenient: E-commerce allows customers to shop from the comfort of their homes or on the go, at
any time of day or night, providing them with a convenient and hassle-free shopping experience.

Personalized marketing: E-commerce platforms allow businesses to collect customer data and use it
to deliver personalized marketing messages, promotions, and recommendations.
Data-driven decision making: E-commerce platforms provide businesses with valuable data on
customer behavior, allowing them to make informed decisions about product offerings, pricing, and
marketing strategies.

E-commerce has revolutionized the way businesses operate, providing them with new opportunities
to connect with customers, increase revenue, and expand their reach.

22. Explain service blue print

Answer Definition: A service blueprint is a diagram that visualizes the relationships between
different service components — people, props (physical or digital evidence), and processes — that
are directly tied to touchpoints in a specific customer journey. Think of service blueprints as a part
two to customer journey maps. Similar to customer-journey maps, blueprints are instrumental in
complex scenarios spanning many service-related offerings. Blueprinting is an ideal approach to
experiences that are omnichannel, involve multiple touchpoints, or require a crossfunctional effort
(that is, coordination of multiple departments). A service blueprint corresponds to a specific
customer journey and the specific user goals associated to that journey. This journey can vary in
scope. Thus, for the same service, you may have multiple blueprints if there are several different
scenarios that it can accommodate. For example, with a restaurant business, you may have separate
service blueprints for the tasks of ordering food for takeout versus dining in the restaurant. Service
blueprints should always align to a business goal: reducing redundancies, improving the employee
experience, or converging siloed processes.

23. Explain the presentation mix of hospitality

( physical plan location atmosphere employees )
Answer
The presentation mix of hospitality refers to the various elements that hospitality businesses
use to create a favorable impression on their customers. These elements include the
physical plan, location, atmosphere, and employees. Here is an explanation of each element:

Physical Plan: The physical plan includes the design, layout, and décor of the hospitality
business. This encompasses the architecture, interior design, furniture, lighting, and color
scheme of the space. The physical plan should be appealing, comfortable, and functional for
customers, and it should reflect the brand identity and target market of the business.
Location: The location of a hospitality business is a critical element of the presentation mix.
It should be easily accessible, visible, and convenient for customers. The location should also
reflect the brand identity and target market of the business. For example, a luxury hotel may
choose to locate in an exclusive neighborhood, while a budget hotel may choose a more
accessible location near a highway or airport.
Atmosphere: The atmosphere of a hospitality business includes the ambiance, mood, and
overall feeling that customers experience when they enter the space. This is created through
elements such as music, lighting, scent, and décor. The atmosphere should be consistent
with the brand identity and target market of the business. For example, a fine dining
restaurant may create a romantic and intimate atmosphere, while a sports bar may create a
lively and energetic atmosphere.
 Employees: The employees of a hospitality business are a critical element of the
presentation mix. They are the face of the business and play a key role in creating a
favorable impression on customers. They should be well-trained, knowledgeable, friendly,
and professional. They should also reflect the brand identity and target market of the
business. For example, a luxury hotel may hire highly trained and experienced staff, while a
budget hotel may focus on friendly and approachable staff.
In summary, the presentation mix of hospitality is a combination of physical plan, location,
atmosphere, and employees. These elements should work together to create a favorable
impression on customers and reflect the brand identity and target market of the business

24. Explain the marketing mix

Answer
Marketing Mix: Price, product, promotion and place are the four ‘p’s of a marketing mix. The
pricing policy of a firm must consider the other components of a marketing mix as well,
because these factors are closely related. Moreover, these factors will change according to
changing market conditions and will be different for each market. Thus, marketing research
and the marketing information system can be utilised to form the appropriate pricing policy.

Product is your core offering which in this case is your information service, which may be
your blog or consulting service. This is the “product” that will fulfill the needs of your
potential customers and needs to be defined really well in terms of the core attributes and
also in terms of extended attributes. If your product design is faulty, in terms of fulfilling the
expectations of your customers in terms of core and extended attributes, every marketing
strategy will fail. The attributes of the product, vis-a-vis the attributes offered by competing
products and substitutes, are important in estimating the competitive scenario for the
strategy formulation, especially when the attributes in question are intangible.

Price has a lot of impact on the service buyer’s satisfaction level. Often, paying a higher price
for information services makes a customer more satisfied. It is important to note that
information services being all the more intangible, price is often considered a proxy for
quality and vice-versa, and quality is a key determinant of acceptance of any information
service. The bundling strategy undertaken during pricing for the attributes plays a key role in
the consumption decision making process. Also, it is important to price offerings as a packet,
which can be purchased separately.

Place often offers a relatively lower value (utility) to the customer of information services.
However, for consulting services, consultants may need to provide physical evidence, by
visiting the consumer’s “place”.

Promotion plays a key role in the perception the possible target audience may have about
your service. There has to be a fit between the promotion and the positioning. Promotion
leads to service (brand) recognition and further establishes a proxy to evaluate quality of
services based by potential customers. Where exactly you are promoting your offering
creates a major impact on the brand and quality perception of the offering.

25. Explain the product life cycle

Answer
 Product life cycle strategies The product life cycle contains four distinct stages: introduction,
growth, maturity and decline. Each stage is associated with changes in the product's
marketing position. You can use various marketing strategies in each stage to try to prolong
the life cycle of your products. Product introduction strategies Marketing strategies used in
introduction stages include:
• rapid skimming - launching the product at a high price and high promotional level
• slow skimming - launching the product at a high price and low promotional level
• rapid penetration - launching the product at a low price with significant promotion
• slow penetration - launching the product at a low price and minimal promotion During the
introduction stage, you should aim to:
• establish a clear brand identity
• connect with the right partners to promote your product
• set up consumer tests, or provide samples or trials to key target markets
• price the product or service as high as you believe you can sell it, and to reflect the quality
level you are providing You could also try to limit the product or service to a specific type of
consumer - being selective can boost demand. Read more about the introduction stage of a
product life cycle.

26. Short note on branding

Answer Branding is the process of creating a unique name, design, symbol, or image that identifies
and distinguishes a product, service, or company from its competitors. The purpose of branding is to
create a strong and memorable identity that resonates with customers and inspires loyalty and trust.

Effective branding involves several key elements, including:

Brand strategy: This involves defining the brand's purpose, values, and personality, as well as
identifying the target audience and positioning the brand in the marketplace.

Brand identity: This includes the brand's name, logo, color palette, typography, and other visual
elements that create a consistent and recognizable brand image.

Brand messaging: This involves creating a clear and compelling brand message that communicates
the brand's value proposition and resonates with the target audience.

Brand experience: This involves creating a positive and memorable experience for customers at
every touchpoint, from the website and social media to the product or service itself.

Brand management: This involves monitoring and protecting the brand's reputation, ensuring
consistency and quality across all channels, and adapting the brand strategy as needed to stay
relevant and competitive.

Strong branding can help businesses to stand out in a crowded marketplace, build customer loyalty
and trust, and increase brand awareness and recognition. A well-crafted brand can also command a
premium price, creating a competitive advantage and driving revenue growth.

27. Define the product and product level

Answer Product is your core offering which in this case is your information service, which may be
your blog or consulting service. This is the “product” that will fulfill the needs of your potential
customers and needs to be defined really well in terms of the core attributes and also in terms of
extended attributes. If your product design is faulty, in terms of fulfilling the expectations of your
customers in terms of core and extended attributes, every marketing strategy will fail. The attributes
of the product, vis-a-vis the attributes offered by competing products and substitutes, are important
in estimating the competitive scenario for the strategy formulation, especially when the attributes in
question are intangible

The five product levels are: 1. Core benefit: The fundamental need or want that consumers satisfy by
consuming the product or service. For example, the need to process digital images. 2. Generic
product: A version of the product containing only those attributes or characteristics absolutely
necessary for it to function. For example, the need to process digital images could be satisfied by a
generic, low-end, personal computer using free image processing software or a processing
laboratory. 3. Expected product: The set of attributes or characteristics that buyers normally expect
and agree to when they purchase a product. For example, the computer is specified to deliver fast
image processing and has a high-resolution, accurate colour screen. 4. Augmented product: The
inclusion of additional features, benefits, attributes or related services that serve to differentiate the
product from its competitors. For example, the computer comes pre-loaded with a high-end image
processing software for no extra cost or at a deeply discounted, incremental cost. 5. Potential
product: This includes all the augmentations and transformations a product might undergo in the
future. To ensure future customer loyalty, a business must aim to surprise and delight customers in
the future by continuing to augment products. For example, the customer receives ongoing image
processing software upgrades with new and useful features.

28. Methods and pricing strategies ( cost based customer based penetration pricing bundle
pricing price and skimming complementary pricing)

Answer

Pricing a product is one of the most important aspects of your marketing strategy. Generally, pricing
strategies include the following five strategies.

1. Cost-plus pricing—simply calculating your costs and adding a mark-up

2. Competitive pricing—setting a price based on what the competition charges

3. Value-based pricing—setting a price based on how much the customer believes what you’re
selling is worth

4. Price skimming—setting a high price and lowering it as the market evolves

5. Penetration pricing—setting a low price to enter a competitive market and raising it later

29. Importance of distribution channel

Answer

▪ IMPORTANCE OF DISTRIBUTION CHANNEL Distribution channels have a very efficient role in the
smooth functioning of businesses. Some of the importance are discussed below: Timely Delivery Of
Products This is one of the important function of distribution channels. Distribution channel helps in
the delivery of products to customers on the right time. If products are not available at the right
time to customers, it may disappoint him. It has removed all distance barriers for businesses while
performing their operations. Distribution channels have made it possible for businesses to serve
customers even at far distant places. Maintain Stock Of Products Distribution channel has an
efficient role in maintaining sufficient stocks of goods. It helps in maintaining the supply of goods as
per the demands in the economy. Distribution channels performs functions of storing the products
in warehouses & supplying them according to demand in the market. It avoids all cases of shortage
of supply of goods in market. Provides Market Information Distribution channel is served as the
medium through which business acquire all required information from the market. It takes all
information like demand, price & nature of competition in the market from its different
intermediaries involved in its distribution channel. Also, customers provide information & various
suggestions to producers through these channels. It helps in formulating strategies according to that.
Promotion Of Goods Distribution channels helps in marketing & promotion of products. There are
several middlemen’s who are involved in the distribution system of businesses. These intermediaries
inform the customers about the product. They introduce them with new products & explain them to
its specifications. Customers are induced & motivated to buy these products by intermediaries.
Hence, the distribution channel has an efficient role in promotion & marketing of goods. Provide
Finance Business gets financial assistance from the distribution channel. Intermediaries involved in
distribution channel buys goods in bulk from producers. These intermediaries give payment to
producers while purchasing. Then these middlemen sell these goods to customers in quantities
demanded by them. They even provide credit facilities to the customers. However, producers get
timely payment & are saved from blocking of their funds through credit selling. Therefore
distribution channel regulation the funds’ movement of businesses. Generates Employment
Distribution channel generates employment in the economy. There are huge number of peoples who
are involved in the distribution system of businesses. These people are wholesaler, retailers &
different agents. All these people earn their livelihood through working in these distribution
channels. Therefore, distribution channels are creating employment opportunities for peoples.
Distribution Of Risk Risk is something which is associated with each & every business. Distribution
channels save the producers from the risk of delivering products to customers safely & timely. It
becomes the duty of intermediaries that are involved in the channel to deliver it to customers
timely. Producers focus only on their production activities & don’t need to consider issues about
delivering products.

30. Explain/distinguish push and pull strategy

Answer Push Strategy A push strategy is where the manufacturer concentrates their marketing
effort on promoting their product to the next party in the distribution chain (retailer or wholesaler),
to convince them to stock their products. A combination of promotional mix strategies may be used
including: ▪ Representation at trade shows, ▪ Business to business selling ▪ Mail shots to the
distribution chain ▪ Incentives for the retailer to display the product on a key shelf in their stores ▪
Bulk buy discounts ▪ Distribution chain allowed extended credit or a long period of time to pay
invoices ▪ Contributing towards the retailer/wholesaler's promotion costs ▪ Incentives for the
retailer/wholesaler's sales team to sell the manufacturer's products. Pull Strategy A pull strategy
involves the manufacturer promoting their products to the target market to create demand, so that
retailers are forced into stocking the manufacturer's product. Consumer demand pulls products from
the manufacturer through the distribution chain and onto the customer hence the name pull
strategy. Consumer demand is created through a variety of promotional mix activity including: ▪
Manufacturer discount coupons ▪ Product taster sessions ▪ Free warranties ▪ Loyalty schemes ▪
Promotional e-mails ▪ Major event sponsorship

31. List and explain different types of hospitality distribution network

Answer The hospitality industry relies heavily on distribution networks to connect with customers
and generate revenue. There are several types of hospitality distribution networks, each with its
own unique features and benefits. Here are ten different types of hospitality distribution networks:

Global distribution systems (GDS): These are online platforms that connect travel agencies and other
intermediaries with a wide range of travel suppliers, including hotels, airlines, car rental companies,
and tour operators.

Online travel agencies (OTA): These are third-party platforms that allow customers to book hotel
rooms, flights, rental cars, and other travel products online, often at discounted rates.

Direct bookings: This involves customers booking directly with the hotel, either through the hotel's
website, phone, or email.

Travel wholesalers: These are intermediaries that buy large blocks of hotel rooms, tours, and other
travel products at a discounted rate and then sell them to travel agents and other intermediaries.

Corporate travel departments: These are in-house departments within companies that handle travel
arrangements for employees, including hotel bookings.

Tour operators: These are companies that organize and sell package tours that include
transportation, accommodation, and other activities.

Meeting and event planners: These are professionals who specialize in planning and organizing
conferences, meetings, and other events, including booking hotel rooms and arranging other travel
arrangements for attendees.

Consortia: These are groups of independent travel agencies that band together to negotiate better
rates with suppliers, including hotels.

Corporate accounts: These are agreements between hotels and corporations that provide
discounted rates to employees of the corporation who travel for business purposes.

Mobile apps: These are smartphone apps that allow customers to search for and book hotel rooms,
flights, and other travel products on the go.

Each of these hospitality distribution networks has its own advantages and disadvantages, and many
hotels use a combination of them to maximize their revenue and reach a wider audience. Effective
distribution network management is critical for hotels to ensure that they are reaching the right
customers at the right time and at the right price.
 32. Explain the stages and techniques of personal selling

Answer Personal selling is when a salesperson meets a potential buyer or buyers face-toface with
the aim of selling a product or service.

Personal selling techniques : Focus on the right leads With the extra time and monetary investment
required for face-to-face sales meetings, it’s essential businesses lock down ROI by choosing the
right prospects to meet in person through a comprehensive lead-qualifying process. Not every
meeting will lead to a sale, but you can get yourself closer to hitting those sales stats by asking
yourself:

• What is the value of this potential sale?

• What is the size of the business you’re selling to?

• Is your product or service genuinely going to serve the business well?

• Could building a strong relationship with the DM lead to more business down the line?

• Is a sales meeting actually going to help close the sale? Perhaps the DM is extremely time-poor
and prefers email or telephone communication?

• What value can you add in a sales meeting?

Exceed expectations through preparation

Salespeople who turn up to a meeting without preparing properly are a serious irritant for buyers.
In fact, 82% of B2B buyers think sales reps are unprepared. This suggests that many prospects have
been deterred from sales meetings – which they may consider a waste of time – due to negative
past experiences.

It’s your job to change their mind. Buyers don’t want to work with pushy salespeople. For buyers, a
positive sales experience involves a sales representative who:

• listens to their needs

• is invested in the success of their business

• provides relevant information

Add value in the meeting These days, it’s drummed into sales reps that they must add value in
meetings, demonstrating that they’ll continue to provide useful assistance should the client sign on
the dotted line. Doing this successfully demonstrates that you know what you’re talking about, and
also that you care about working with the company longterm to help them achieve their goals,
thereby building trust.

Main Steps in the Personal Selling Process

There are many steps involved in the process of personal selling: prospecting, preapproach,
approach, sales presentation, handling objectives, and follow up.
PROSPECTI NG The first step of the personal selling process is called ‘prospecting’. Prospecting refers
to locating potential customers. There are many sources from which potential customers can be
found: observation, social contacts, trade shows, commercially-available databases, commercially-
available mail list and cold calling.

PRE-APPROACH The nest step in the personal selling process is called the ‘pre-approach’. The
preapproach involves preparation for the sales presentation. This preparation involves research
about the potential customers, such as market research. Research is useful in planning the right
sales presentation. During the pre-approach the salesperson may also plan and practice their sales
presentation.

THE APPROACH The next step in the personal selling process is called the ‘approach’. The approach
refers to the initial contact between the salesperson and the prospective customer. During this stage
the sales person takes a few minutes for “small talk" and get to know the potential customer. The
goal of the approach is to determine the specific needs and wants of the individual customer, as well
as allowing the potential customer to relax and open up.

SALES PRESENTATI ON The next step in the personal selling process is called the ‘sales presentation’.
The sales presentation involves the salesperson presenting the product or service, describing its
qualities and possibly demonstrating features of the product. Ideally the sales presentation will be
individualized to match the needs and desires of the potential customer.

HANDLI NG OBJECTIVES In some cases, after receiving the sales presentation, the potential customer
will have some questions or concerns. In order to secure a sale, the salesperson must address these
questions or concerns; this step is referred to as ‘handling objectives.

’ CLOSI NG THE SALE The next step in the personal selling process is referred to as ‘closing the sale’.
‘Closing the sale’ refers to finalizing the sale and persuading the potential customer to make the
purchase. During the ‘closing the sale’ step, prices and payment options may be negotiated.

FOLLOW UP The final step in the personal selling process is referred to as the ‘follow up.’ The follow
up involves the salesperson contacting the customer after the sale to ensure that the customer is
satisfied. If the customer has any existing issues with the product, the salesperson will address them.
A successful follow up stage of personal selling can be very effective in ensuring repeat sales,
evaluating the effectiveness of the salesperson, and obtaining additional referrals from the satisfied
customer.

33. Distribution channel and types

Answer

A distribution channel, also known as a marketing channel, is a network of intermediaries

through which a product or service travels from the manufacturer or supplier to the end
consumer. It is a pathway through which goods or services move from the point of
production to the point of consumption.

Service channels: Distribution channel for services are usually short, and are either direct or
use an agent. Since stocks are not held, the role of wholesalers, retailers or industrial
distributors does not apply.
 Service provider to consumer or industrial customer: Close relationship between service
provider and customer means that service supply has to be direct, for instance, healthcare.

The service provider operates several outlets to reach out to the final consumer or to the
industrial buyer. Many service providers such as banks, retail outlets, service centers
operate via this distribution channel.

Service provider to agent to consumer or industrial customer: Agents are used when the
service provider is geographically away from customers and when it is not economical for
the provider to establish its own local sales team. For instance, many financial institutions
are using this distribution channel to cross sell their services to customers by using a
database of existing or potential customers.

Service provider via internet to consumer or industrial customer: Increasingly, services like
music, software solutions and financial information are being distributed via the internet.
This distribution channel is successful in case of products which can be downloaded. It is a
very useful channel for information products. Nowadays, e-tickets have become very
popular.

34. Explain the terms – marketing sales hospitality products services service gap

Answer

Sales include “operations and activities involved in promoting and selling goods or services.”

Marketing includes “the process or technique of promoting, selling, and distributing a product or
service.”

In the hospitality industry, product is not just a tangible object.

The product definition is extended to include the following: experiences, people, places,
organizations, information and ideas. Consumers decide where to visit, where to stay, what to eat
and what entertainment they wish to see.

Hospitality Services

Hospitality is defined as taking care of your guests and anticipating their needs and it is the
relationship between the guest and the host, or the act or practice of being hospitable. This includes

entertainment of guests, visitors, or strangers.

 35. Market strategies during product life cycle

Answer

The product life cycle contains four distinct stages: introduction, growth, maturity and decline. Each
stage is associated with changes in the product's marketing position. You can use various marketing
strategies in each stage to try to prolong the life cycle of your products. Product introduction
strategies Marketing strategies used in introduction stages include:

• rapid skimming - launching the product at a high price and high promotional level

• slow skimming - launching the product at a high price and low promotional level

• rapid penetration - launching the product at a low price with significant promotion

• slow penetration - launching the product at a low price and minimal promotion

During the introduction stage, you should aim to:

• establish a clear brand identity

• connect with the right partners to promote your product

• set up consumer tests, or provide samples or trials to key target markets

• price the product or service as high as you believe you can sell it, and to reflect the quality level
you are providing You could also try to limit the product or service to a specific type of consumer -
being selective can boost demand.

the introduction stage of a product life cycle.

Product growth strategies Marketing strategies used in the growth stage mainly aim to increase
profits. Some of the common strategies to try are:

• improving product quality

• adding new product features or support services to grow your market share

• enter new markets segments

• keep pricing as high as is reasonable to keep demand and profits high

• increase distribution channels to cope with growing demand

• shifting marketing messages from product awareness to product preference

• skimming product prices if your profits are too low. Growth stage is when you should see rapidly
rising sales, profits and your market share. Your strategies should seek to maximise these
opportunities. Product maturity strategies When your sales peak, your product will enter the
maturity stage. This often means that your market will be saturated and you may find that you need
to change your marketing tactics to prolong the life cycle of your product.

Common strategies that can help during this stage fall under one of two categories:

• market modification - this includes entering new market segments, redefining target markets,
winning over competitor’s customers, converting non-users
 • product modification - for example, adjusting or improving your product’s features, quality, pricing
and differentiating it from other products in the marking Read more about the growth and maturity
stage of a product life cycle

. Product decline strategies During the end stages of your product, you will see declining sales and
profits. This can be caused by changes in consumer preferences, technological advances and
alternatives on the market. At this stage, you will have to decide what strategies to take. If you want
to save money, you can:

• reduce your promotional expenditure on the products

• reduce the number of distribution outlets that sell them

• implement price cuts to get the customers to buy the product

• fin another use for the product

• maintain the product and wait for competitors to withdraw from the market first

• harvest the product or service before discontinuing it Another option is for your business to
discontinue the product from your offering. You may choose to:

• sell the brand to another business

• significantly reduce the price to get rid of all the inventory Many businesses find that the best
strategy is to modify their product in the maturity stage to avoid entering the decline stage. Find out
more about product life cycle - decline stage

36. Sales promotion types and techniques

Answer

Types of Sales Promotions

1. Discounted products Adding a discount to your products is possibly the most popular type of
promotion. Customers love to grab a bargain, so it makes sense to offer discounts every now
and then. When it comes to deciding the way you choose to promote - % vs $ - think about what
will look more attractive to the buyer. Always consider your bottom line and be sure to not
constantly have a sale, as people will just come to exxpect this as the norm.
• Make sure your discount is attractive
• Consider your bottom line
• Don’t do it too often

2. Free Shipping/Free Returns According to this WalkerSands infographic, 80% of consumers would
be more tempted to buy from Amazon if they were offered free shipping. 66% would buy if they
were offered next-day delivery and 64% said they would buy if they were offered free returns.
Free shipping and returns gives the customer a sense of security that they wont lose out if they
wanted to send the product back. If you are worried about your margins then you can always
incorporate the shipping cost into your product, or think about offering free shipping when a
customer spends over a certain amount.
• Free shipping/free returns creates customer security
• Makes it hassle free
 • Incorporate shipping cost into your product

3. Flash Sale A flash sale is basically an offer that only lasts for a limited time and it’s a great way to
create a sense of urgency for the customer to buy. Many retailers are now adopting this
strategy as a way to sell more products and get rid of surplus stock. Monetate found that 56% of
businesses agree that flash-sale campaigns are better received than regular campaigns. The
more successful flash sales are ones that don’t last very long and 50% of purchases occur during
the first hour of a flash sale.
• Market your flash sale with a recognizable visual
• Put a shorter duration on your sale
• Promote via email and on social

4. Buy More, Save More This kind of deal entices the customer to buy more of your stock, so it’s
kind of a win, win. There will be plenty of potential customers visiting your store that want to
buy, but feel guilty because of the price. Giving them a discount if they spend more, may just
give them a little shove in the right direction. You don’t have to offer a huge discount, but make
sure it’s attractive enough to convert visitors.
• Entices the customer
• Takes away the guilt of spending more money
• Helps to sell more stock

5. Product Giveaways/Branded Gifts Let’s be honest, everyone loves a freebie so this really is a
great promotion. Not only does it give potential customers the chance to test out your product,
but also it entices people to buy your stuff! If your product isn’t something that you can
giveaway, then think about creating some useful branded gifts that you can offer with each
purchase. Think along the lines of keychains, bumper stickers, magnets, pens etc. Customers will
appreciate the gesture and will think of you whenever they see their branded gift. • Lets
customers test your product
• Makes your brand memorable
• Provides value and a reason to buy

6. Loyalty Points Rewarding your customers will help you build a solid base of loyal fans and it will
entice people to shop more at your online store. Providing great customer service is so
important to the success of your business, and offering a loyalty point system is a popular
promotion. You could think about setting up a virtual card: The customer can gain points every
time they buy and then use their points to get money off future purchases, or if they buy 9
items, they get the 10 th free.
• Builds a loyal customer base
• Provides better customer satisfaction
• Provide them with a loyalty system to keep coming back

7. Coupon Giveaway This is a different way of promoting discounts. Sending your customers virtual
coupons will make the promotion seem more exclusive and will give the customer more of a
push to visit your online store. Think about sending coupons to loyal customers that have spent
over a certain amount. You could also consider sending coupons to visitors that have
experienced bad customer service, to try and convert them back to happy customers!
• Makes the promotion seem exclusive
• Keeps the customer happy
 • Offers a great way to win back disgruntled customers

8. Competitions The great thing about running a competition is that you only have to give away
one thing, but you gain so much – making it a popular type of promotion! It will not only help
raise your profile, but every person that enters, will then become an email contact that you can
try and convert into a sale. If they’re entering your competition, chances are they are interested
in your products, so running a competition is a great idea – particularly for start-ups. • Great
way to gain email sign ups
• Helps you raise your profile
• It will create a buzz on social media

9. Price Match Promise Price match promise has fast become one of the most popular ways to
promote your brand, particularly if you have a lot of competitors out there. It allows your
customers to shop with you and will be safe in the knowledge that if they can get it cheaper
somewhere else, you’ll refund the difference. There’s nothing to lose for them and it means
that you still get to keep a solid customer base.
• Helps you stay ahead of the competition
• Provides a no lose situation for the customer
• It’s a bold move that will build loyal customers

10. Holiday Promotions There is a reason that holiday promotions are so successful. Customers
always like to spend more around the holidays, making it the perfect opportunity for you to get
your brand out there and sell more products. You don’t have to go too crazy on your offers, but
enticing customers with slight discounts will always work in your favor. It’s also the perfect time
to get creative with your promotion and use the theme of the holiday, to sell your products.
• You don’t need to offer huge discounts
• Get creative with your promotions
• You will sell more during the holidays

Important techniques of sales promotion are as follows:

• (1) Rebate: • Under it in order to clear the excess stock, products are offered at some reduced
price. For example, giving a rebate by a car manufacturer to the tune of 12,000/- for a limited
period of time. •

• (2) Discount: • Under this method, the customers are offered products on less than the listed
price. For example, giving a discount of 30% on the sale of Liberty Shoes. Similarly giving a
discount of 50% + 40% by the KOUTONS.

• (3) Refunds: • Under this method, some part of the price of an article is refunded to the
customer on showing proof of purchase. For example, refunding an amount of 5/- on showing
the empty packet of the product priced 100/-.
• (4) Product Combination: • Under this method, along with the main product some other
product is offered to the customer as a gift. The following are some of the examples:
• (5) Quantity Gift: • Under this method, some extra quantity of the main product is passed on
as a gift to the customers. For example, 25% extra toothpaste in a packet of 200 gm tooth paste.
Similarly, a free gift of one RICH LOOK shirt on the purchase of two shirts.
 • (6) Instant Draw and Assigned Gift: • Under this method, a customer is asked to scratch a card
on the purchase of a product and the name of the product is inscribed thereupon which is
immediately offered to the customer as a gift. For example, on buying a car when the card is
scratched such gifts are offered – TV, Refrigerator, Computer, Mixer, Dinner Set, Wristwatch, T-
shirt, Iron Press, etc.
• (7) Lucky Draw: • Under this method, the customers of a particular product are offered gifts
on a fixed date and the winners are decided by the draw of lots. While purchasing the product,
the customers are given a coupon with a specific number printed on it. • On the basis of this
number alone the buyer claims to have won the gift. For example, ‘Buy a bathing soap and get a
gold coin’ offer can be used under this method.
• (8) Usable Benefits: • Under this method, coupons are distributed among the consumers on
behalf of the producer. Coupon is a kind of certificate telling that the product mentioned
therein can be obtained at special discount. • It means that if a customer has a coupon of some
product he will get the discount mentioned therein whenever he buys it. Possession of a coupon
motivates the consumer to buy the product, even when he has no need of it. • Such coupons
are published in newspapers and magazines. Some companies distribute coupons among its
shareholders. Sellers collect the coupons from the customers and get the payment from the
company that issues the same.
• (9) Full Finance @ 0%: • Under this method, the product is sold and money received in
installment at 0% rate of interest. The seller determines the number of installments in which the
price of the product will be recovered from the customer. No interest is charged on these
installments.
• (10) Samples or Sampling: • Under this method, the producer distributes free samples of his
product among the consumers. Sales representatives distribute these samples from door-to-
door. • This method is used mostly in case of products of daily-use, e.g., Washing Powder, Tea,
Toothpaste, etc. Thus, the consumers willy-nilly make use of free sample. If it satisfies them,
they buy it and in this way sales are increased.
• (11) Contests: • Some producers organise contests with a view to popularizing their products.
Consumers taking part in the contest are asked to answer some very simple questions on a form
and forward the same to the company. The blank form is made available to that consumer who
buys the product first. • Result is declared on the basis of all the forms received by a particular
date. Attractive prizes are given to the winners of the contest. Such contests can be organised in
different ways.

37. Explain type of media and its importance

Answer

Media is the term we use to refer to different types of media that provide us with important
information and knowledge. Media has always been part of our society, even when people used
paintings and writings to share information. As time passed, people came up with different modes to
provide

news to the public. Based on the type of medium, their role may be different, but they all exist to
communicate to the audience and affect their perceptions. Today, we don’t have to travel oceans or
wait for a pigeon to get the latest news. Here, you’ll learn a lot about today’s media falling under
three main categories.
Different Types of Media

The goal of media is to convey an advertising message to the audience through the most appropriate
media channel for their product.

In general, you can classify media in three main categories.

Print Media

This type of news media used to be the only way of delivering information to the public. For the
generations of the 80s and 90s, print media was the only media of entertain. People relied on
newspapers and magazines to learn everything, from recipes and entertainment news to important
information about the country or the

world. Print media includes:

• Newspapers – printed and distributed on a daily or weekly basis. They include news related to
sports, politics, technology, science, local news, national news, international news, birth notices, as
well as entertainment news related to fashion, celebrities, and movies. Today’s parents grew up with
this type of printed media.

• Magazines – printed on a weekly, monthly, quarterly, or annual basis. It contains information

about finance, food, lifestyle, fashion, sports, etc.

• Books – focused on a particular topic or subject, giving the reader a chance to spread their
knowledge about their favorite topic.

• Banners – used to advertise a company’s services and products, hung on easily-

noticed sights to attract people’s attention.

• Billboards – huge advertisements created with the help of computers. Their goal is to attract
people passing by.

• Brochures – a type of booklet that includes everything about one company – its products, services,
terms and conditions, contact details, address, etc. They are either distributed with the newspapers,
or hand over to people.

• Flyers – used mostly by small companies due to the low cost of advertising. They contain the basic
information about a company, their name, logo, service or

product, and contact information, and they are distributed in public areas.

Broadcasting Media

Broadcasting media includes videos, audios, or written content that provides important or
entertaining information shared by different methods:

• Television – in the past, there were a few channels sharing various types of content, whereas now
we have hundreds of TV channels to choose from. Each channel delivers a different type of content,
so you have a separate channel for news, drama, movies, sports, animation, nature, travel, politics,
cartoon, and

religion. It’s the number one broadcasting media due to its reach to the audience.
• Radio – uses radio waves to transmit entertaining, informative, and educative content to the
public. Due to its high reach to the audience, radio is widely used for

advertising products and services. Radio is one of the oldest means of entertainment, and today
people often hear it to find out the weather and traffic while commuting.

• Movies – film, motion picture, screenplay, moving picture, or movie has world- wide reachability.
It’s the best type of mass media to promote cultures and spread social awareness. Movies have
always played a huge part in the entertainment

world.

Internet Media

Nowadays, we are relying on the Internet to get the news a lot more often than the traditional news
sources. Websites provide information in the form of video, text, and audio. We can even choose
the way we want to receive the news. Types of Internet media include:

• Social networks or websites – including Facebook, Instagram, Twitter, YouTube, Tumblr, LinkedIn,
Snapchat, Quora, Reddit, Pinterest, etc. They are user-friendly and widely used by people around the
world. Although we can find any news here,

they may be misleading because of the lack of regulations on the content shared.

• Online forums - an online place where we can comment, message, or discuss a particular topic.
Forums allow us to share knowledge with other people with the same interest. That’s why it’s
regarded as the best platform to seek support and assistance.

• Podcast – a series of audios focused on a particular topic or theme. We can listen to them on a
computer or a mobile phone. It’s a platform that allows anyone to share their knowledge and
communicate with the world.

38. What is consumer behaviour explain with examples

Answer

Consumer behaviour is the study of how individual customers, groups or organizations select, buy,
use, and dispose ideas, goods, and services to satisfy their needs and wants. It refers to the actions
of the consumers in the marketplace and the underlying motives for those actions. Consumer
behavior is the study of consumers and the processes they use to choose, use (consume), and
dispose of products and services, including consumers’ emotional, mental, and behavioral
responses. Consumer behavior incorporates ideas from several sciences including psychology,
biology, chemistry, and economics.

39. Define pricing and its objective

Answer

Pricing can be defined as the process of determining an appropriate price for the product, or it is an
act of setting price for the product. Pricing involves a number of decisions related to setting price of
product. Pricing policies are aimed at achieving various objectives. Company has several objectives
to be achieved by the sound pricing policies and strategies. Pricing decisions are based on the
objectives to be achieved. Objectives are related to sales volume, profitability, market shares, or
competition.

• To face up to the competition: today’s markets are characterised by intense competition and
companies set and modify their pricing policies so as to respond to their competitors. Many
companies use price as a powerful tool to react to the level and strength of competition.

• To deter competitors: to prevent the entry of competitors can be one of the main pricing
objectives. To achieve this objective, a company keeps its price as low as possible to minimise profit
attractiveness of products. In some cases, a company reacts offensively to prevent entry of
competitors by selling products at a loss.

• Signal quality: buyers believe that a high price is related to high quality. In order to create a
positive image in customers' minds that your product is superior to that offered by close competitors
you will design your prices accordingly.

• Sales growth: It is assumed that sales growth has a direct positive impact on profits so pricing
decisions are taken in way that sales volume can be raised. Setting a price, altering or modifying
policies are targeted to improve sales.

• Targeting market share: Pricing decisions are taken in such a way that enable your company to
achieve targeted market share. Market share is a specific volume of sales determined in the light of
total sales in an industry. For example, your company may try to achieve a 25% market share in the
relevant industry.

• Increase in market share: Sometimes, price and pricing are taken as the tools to increase market
share. When you realise that your market share is lower than expected it can be raised by
appropriate pricing; pricing is aimed at improving market share.

• Profit margin maximisation: seeks to maximise the per-unit profit margin of a product. This
objective is typically applied when the total number of units sold is expected to be low

Profit maximisation: seeks to earn the greatest pound amount in profits. This objective is not
necessarily tied to the objective of profit margin maximisation.

40. Internal and external factor affecting pricing decisions

Answer

The internal factors affecting pricing decisions are:

1. Company Objectives: This has considerable influence on the pricing decisions of a firm. Pricing
policies and strategies must be in conformity with the firm’s pricing objectives. For example- if a
company desires a targeted rate of return on capital investment, then the pricing decisions are so
made that the total sales revenue from all products, exceeds the total cost by a sufficient margin, to
provide the desired return on the total capital investment.

2. Organisation Structure: Another significant internal factor affecting pricing decisions is the
organisational structure of the firm. Generally, the top management has full authority for framing
pricing objectives and policies. Some firms allow workers’ participation in decision making and
therefore in such firms, all the employees give their views and suggestions for the pricing policy. This
is helpful to the firm if the firm has several products, requiring frequent pricing decisions and where
prices differ in different markets. Similarly, the marketing manager also helps and assists the top
management in framing the pricing policies and strategies. The determination of the selling price is a
major policy decision for the firm and the cost accountant can make an important contribution to
this decision making process by providing the management with costs, which are relevant to the
pricing decision at hand.

3. Marketing Mix: Price, product, promotion and place are the four ‘p’s of a marketing mix. The
pricing policy of a firm must consider the other components of a marketing mix as well, because
these factors are closely related. Moreover, these factors will change according to changing market
conditions and will be different for each market. Thus, marketing research and the marketing
information system can be utilised to form the appropriate pricing policy.

4. Product Differentiation: If a product is different from its competitive products, with features such
as a new style, design, package, etc., then it can fetch a higher price in the market. For example- Lee,
Arrow and Park Avenue shirts, are sold at a high price in the market. Thus, if the product has
distinguishing features, then the firm has greater freedom in fixing the prices and customers will also
be willing to pay that price.

5. Cost of the Product: Pricing decisions are based on the cost production. If a product is priced less
than the cost of production, the firm has to suffer the loss. But the cost of production can be
reduced, by co-ordinating the activities of production properly, the firm can reduce the price
accordingly.

External Factors Influencing Pricing Decisions: The external factors affecting the pricing decision of a
firm are:

1. Demand: Market demand for a product or service has great impact on pricing. If there is no
demand for the product, the product cannot be sold at all. If the product enjoys good demand, the
pricing decision can be aimed to utilise this trend.

2. Competition: There has been a revolutionary change experienced in the Indian market after the
liberalisation and opening up of the economy. The impact of competition is more pronounced than
in the earlier days. The market is flooded with too many products, both Indian and foreign. The
number, size and pricing strategy, followed by competitors have a significant role to play in the
pricing decision. If the product cannot be differentiated with special features, a firm cannot charge a
higher price than that of its competitors.

3. Buyers: If there are no ready takers for the product, it is said to have failed in the market. Pricing
decision is thus related to the characters, nature and preferences of the buyers.

4. Suppliers: They supply the required items of production to the firm. As already pointed out, the
firm can reduce the price, if it can reduce the cost of production. If not, the usual tendency is to
charge the increased cost of production to the consumer. For example- the price hike for petrol or
diesel will automatically increase the price of vegetables, fruits, provisions, etc. If a firm could get
the required raw materials at reasonable rates from suppliers, then it can also price the goods at a
less rate.

5. Economic Conditions: This also affects the pricing decision of a firm. In a depressed economy,
business activities will be considerably less, but in a boom condition, there will be hectic business
activity. Therefore, economic conditions affect the demand for goods and services. So, in a
depressed economy, in order to accelerate business one sells goods at a lesser price, but in a boom
period, goods can be sold at a high price.

6. Government Regulations: The government has the power to regulate the activities of business
firms, so that they do not charge high prices and don’t indulge in anti-social activities. The
government does this by passing various acts; For example- the MRTP Act, Consumer Protection Act,
etc. To quote one case, Nestle has advertised that they are giving one Kit Kat chocolate free with
another product of the company, the MILO beverage. Actually, the company increased the price of
MILO, by adding the price of a bar of KIT KAT to it. This attracted the attention of the MRTP enquiry
committee. The company was asked to cancel the offer and was also punished for wrong trade
practices

43. What are the fuctions of public relation managers?

The functions of public relations manager and public relations agencies

include:

1. Anticipating, analysing, and interpreting the public opinion and attitudes of the public towards
the brand and drafting strategies which use free or earned

media to influence them.

2. Drafting strategies to support brand’s every campaign and new move through

editorial content.

3. Writing and distributing press releases.

4. Speechwriting.

5. Planning and executing special public outreach and media relations events.

6. Writing content for the web (internal and external websites).

7. Developing a crisis public relations strategy.

8. Handling the social media presence of the brand and responding to public

reviews on social media websites

43 Define public relation. What are the objectives and function of public relation?

Public relations is a strategic communication process companies, individuals, and organizations use
to build mutually beneficial relationships with the public.

A public relations specialist drafts a specialized communication plan and uses media and other direct
and indirect mediums to create and maintain a positive

brand image and a strong relationship with the target audience.

Objective Of Public Relations

The main objective of public relations is to maintain a positive reputation of the

brand and maintain a strategic relationship with the public, prospective customers,

partners, investors, employees and other stakeholders which leads to a positive

image of the brand and makes it seem honest, successful, important, and relevant. Functions Of
Public Relations

Public relations is different from advertising. Public relations agencies don’t buy ads, they don’t write
stories for reporters, and they don’t focus on attractive paid

promotions. The main role of public relations is to promote the brand by using editorial content
appearing on magazines, newspapers, news channels, websites, blogs, and TV programs.

Using earned or free media for promotion has its own benefits as information on these mediums
aren’t bought. It has a third party validation and hence isn’t viewed with scepticism by the public

44. explain 7Ps of marketing briefly

Answer

7Ps of Marketing

Product is your core offering which in this case is your information service, which may be your blog
or consulting service. This is the “product” that will fulfill the needs of your potential customers and
needs to be defined really well in terms of the core attributes and also in terms of extended
attributes. If your product design is faulty, in terms of fulfilling the expectations of your customers in
terms of core and extended attributes, every marketing strategy will fail. The attributes of the
product, vis-a-vis the attributes offered by competing products and substitutes, are important in
estimating the competitive scenario for the strategy formulation, especially when the attributes in
question are intangible.

Price has a lot of impact on the service buyer’s satisfaction level. Often, paying a higher price for
information services makes a customer more satisfied. It is important to note that information
services being all the more intangible, price is often considered a proxy for quality and vice-versa,
and quality is a key determinant of acceptance of any information service. The bundling strategy
undertaken during pricing for the attributes plays a key role in the consumption decision making
process. Also, it is important to price offerings as a packet, which can be purchased separately.

Place often offers a relatively lower value (utility) to the customer of information services. However,
for consulting services, consultants may need to provide physical evidence, by visiting the
consumer’s “place”.

Promotion plays a key role in the perception the possible target audience may have about your
service. There has to be a fit between the promotion and the positioning. Promotion leads to service
(brand) recognition and further establishes a proxy to evaluate quality of services based by potential
customers. Where exactly you are promoting your offering creates a major impact on the brand and
quality perception of the offering.
 People are crucial in service delivery when the offering is intangible. Since the actual service
provider is often not visible, creating artifacts through photos of the experts creates the element of
trust. Consumers prefer to see a “human face” in the email contact details rather than a blank space
or an emoticon.

Processes are important to deliver a quality service. Information services being intangible, processes
become all the more crucial to ensure standards are met with. Process mapping ensures that your
service is perceived as being dependable by your target segment. It is of utmost importance, how
fast the consumer’s issues get redressed, which directly impacts the customer’s satisfaction with the
service and impacts the “Customer’s Network Value”. Not only attending a concern is important, but
how quickly, effectively and efficiently is the consumer’s concerns are getting addressed and closed,
plays a major role in the management of the relationship.

Physical evidence majorly affects the customer’s satisfaction but in case of information services, it
plays a dicey role. Since information services are intangible, customers depend on other cues to
judge the quality of the offering. Factors such as accreditation, stamps, and seals create trust in the
minds of the consumer.