:.toii (NO\f..

DEC)
1'1 lt,l lplt•1-, ot M.irk,:ti1111,
H. l 'oil\, (1101114,)
V

nl/1•1111it,•,t logl'/fil'rMow1111 m Marks: 75

11
, \// I'''' Is n/ 0111•11 /w11 11111 1,t llf'
I\ //,,,,,,,, II II 'I /I(••, /IOll 'i,
I\ II 1111,•111/01111 c,,,111 ,·,111t1/ 11111rkG
Q, I,(•) ''The ,lln, of "1.trkcllng I, lo m,,k,, "''lling ,upcriluou•." In the liglit of
tbla atal<m<nl <'Xp l,tl n ~ h,11 i, ina.k<I htg. _7
and How d1vcrsi1y
(blracial d'.••• <h,,ngc •n ,\the
•ffcct country', P<>pul,tion age-mix and the growth of ethnic
m,,,l<.,tcr? 8
Ans, (a) S,,• Q. I, C"h,,pt,•r I. [Page 1
0 1
(b) Country's P _P ~•lion "g<-mix nntl lhc growth of ethnic and racial diversity
oflect the marketers. ,01,,n ge Innff'"u
of demogrnphtc cnv1ro_nn1cnt 11try' s
ecling theP<>pu Ja lion age mix is • n itn portant clemen I
marketers.
Age is one of many !actors th.it can affoct the success of marketers. For example the
strategy of marketers Would be different when the majority of population consists
of school and college going children as compared to when the population consists
of high proportion of old-aged people. Age bands directly influence the types of
products as the Marketers would have interest in developing products for younger
population and vice versa. For example, when the population has large number of
young people, products related to sports, fashion, lifestyle, fitness, grooming etc.
would attract the customers. On the other hand, if proportion of old aged people is
. high in the population, marketers would be interested in products like medicines,
pension plans, retirement benefits, Health insurance, natural and herbal products.
Similarly when there is high proportion of children and kids in the population,
marketers would etc.
games, funbooks focus on products like toys, Baby care products, tricycles, learning

. Changes in ethnic and racial diversity als~ influen~e the marketers. The inc..easing
ethnic and racial diversity in both-organisations mternally as well as the- target
audiences externally create an absolute need to identify effective ways to communicate
product
per and brand decisions. Customers in different cultures have dilfe:ent _values,
Mod 1ences
ex . d and waysket of interacting. In order to deal with s h andkracial
• ethnic ti d1vers1ty
·
aim atemreacay mar ers
ng new cu adopt diverse marketing . practices.
hn' uc mar e
ltu l k · . 1 ng practices
· hi stomers m· different racial, et tc, cu ra or soc1a groups.
It 1s
· very unportant
• for g1Ob a1 marketers to acknowledge that I hmar
1 eting
tl k offer
must ·
. ways of commuruc
alternative · ating to these diverse groups. t e ps 1e mar eters m
.cation methods in order to reach veople in
developing a mix of different cornn,~ :iarket. For ,.~ample, McDonald's has done
each of the diverse groups present
thni ':ider;.,ial diversity. The brand's 'I am l,n,;ng it'
~
extensive market research on e co le belon ing to different cultures, cnuntnes and
tarnpaign
ethnicl is very popular among pe p k ti . motorcycles to women by conducting
·ty Harley Davidson started mar e ng 1 Proctor and c,,mble h.,s put 1n
lclasses · · de motorcyc 1es. • •· l•
f to teach women how to n . brand developed vannu, comm,•rc,a
ot o money m · the black commumty. 'th TheAfnc•n-
. Amen..
, ·,..:tn Cl)nsumer~. Co(-., Col.,
~luring black famil;~s t~a!J~:~':!:.:t ca mp,,ign th,;
l[I 2017 came up wi _a I' cs of the patriotic theme •;1 ,. dh·,•isitv
;' fl:~~:•~ ~~~~'.~fa,,.\~;:
1
J ' ...

· affect the
1
individuals singing various m ple of how t'thnic unt r,l( lu
.
lionda in India is a very good exam 273 1
'.!""'4 ■ Shh, ll,111 1'1 l 111 lJN I\ l•lhl I Y 1 11 iHI 1 1
, ,i•l1t ;111 Hw, 111tuw,, rdigion:, ,ind
1\1,nk\•h•"' 11~~,\d c ,11,111111 1•11 '1',•11l1 ~ I J1l1,ulkt.1tt 1,,q , . t J< <, ... (, r th b
' 1 1'"'•1 ',t ,, ' ' ' rand
\,,mn111ni11,•~ 1h,1l ltw 111 h1di11 I Ill' /\d < ,trllf'•11•!~ 11 w '·1r, ' 1 •

Or , I< •
.. , t • ythlnu m,1th•r~ in mar f>tmg and
(,1 ) llohstk mM~\'linl!' .wk1111wl1•tlx,•11 t11,1 ('VI r 11 " , 1 t t t
r> 1il,1bor.11,· 11H! H a ••men • 8
., ht·o.,d, inh•~v·,,tl•ll p,•rliJWl'llw Is often m:r1•81Mry• . h .
( l)
•
1 t•,pl,1111 how tlw
, i
m.ukl'lmg of Nt'O' ceH s 1 dlff er(•nt from t fl marhhn!r ,,f
,.,
~o~. 7
Ans. (,1) &'i. Q. l I, Ch,,pl1•r I,
1 f !I'agf H,
(h) &>t• Q. l(01) (11), (20 I H), , , Pagi, 22fJ
Product. A produl'l is ,rny good or 1,crvicc that o:1 consumer w_ants. It .1~ a bundJe
,,t utilitk•s or., duster nf tangible or intangible attributes. _It requires densum., w.r.I.,
thl.' si,e ,rnd w,•ight of product, quality of product, dc~1gn, volume, brand name,
p,,ck,,ging, range, testing, warranties and aft~r sales-service etc. . ·
Thl' 4-Ps (n,1mcly, product, price, place and promotion) _a re s~andar~ co~porn..--n~
t,f marketing mix in case of products, But in case of services (mtang1ble m naturE:)
this mcn1'cting m.ix is not sufficient. We need to expand the 4Ps of marketing by
,1dding people, physical evidence and process into the picture. In the recent past, i!
has become more common to add these elements to the traditional marketing mix
n1.11'.ing it a combination of 7Ps. This is called extended marketing ntix. .
Tangible products are easier to market as these can be shown, touched and q.isplayed,
whereas services are intangible and are provided to satisfy the customer's needs.
Difference between Product and Service Marketing
.
Basis Product Marketing Service Marketing
(i) Meaning Product marketing is the Service marketing is the
process in which marketing process to offer various kinds
activities are undertaken to of services which can neither
sell a specific product. be seen nor felt.
(ii) Marketing 4Ps 7Ps
mix Product, Price, Place and Product, Price, Place and
Production. Promotion people, Physical
evidence, Process..
(iii) Delivery Products are delivered to the Generally customers reach
customers. stores to avail the services
(iv) Transferability Products can be resold Services cannot be further
transferred.
(v) Tangibility Since products are tangible Services can only be explained
they can be shown, displayed as they are intangible.
and felt.
(vt) Customisation Most of the products are Services are rendered
.
standard and are marketed absolute!¥ as per specific
as such, few changes though needs of the customer.
can be made.
Q. 2. (a) What are the types of buymg motives of a consumer? Give suitable
examples. 7
(b) What is market segmentation? Suggest ways to segment the market for
(i) Mobile Phone (ii) Bicycle 4,4
 l'l~IN( 11'1 I s cW MAIU~ITT IN
C- 20 U (NOV DEC) ■ 275
t\n 'I, (,1) , \ ''''Y"'S
1111,tilJ,• ttH•,111~ wli,'11 imh1n!S
,1 customf'f t O b u Y I pro du\ ·t Thl•r~
\1u) llllt nm \ I\ 1• lwh m1 \
1c; .,
,•v,,ry p ch,>SC. ' ·
Hm1ing m111iw« l\\,1 y '"' d.v,:; 111 .
1,t·
hlf m, ,tl lmyiu~ mo tint•~ Mt 1 d ,,s - lntvrnal .rnd fatcrnal Moh~cs.
' inlwrcnt in th,• mi nd .
thl' lw ,k '"-e ds _like hunf?,cr, s of con.sumi'·rs . I hey anSt~
<..ifcty fro m
fatm,11I lmym,~ 111otit1r.,; .1re , comfort, plcar,urc etc. • .
tho'>C which a com,umcr \c<1
\',h 'm, ,\ en , tro nm l'nl 5ocial rns or acq uir es from hls
~latus, ~ocial acceptance, ach
,,f ~~ch mollws. lncomc, education, jev em cn.t etc. _arc cxampl~
l'tw1ronmcnt influence extern occupation, religion, cul tur e,
al motives. family an d soc1a
Ra tio nal and Em oti on al Mo
tiv es. Rat10nal motives are
logical rea<.oning and con sid tho se which are based on
era tio n of economic consequen
durability and dep end abi lity ces. Th ey inc lud e t~e cost,
of the pro du ct or service. Em
bac;cd on per son al feelings. Th otional bu yin g mot1~es are
ese motives include ego, pre
Pro du ct an d Pa tro nag e Mo stige, love and af~ectlon etc.
tiv es. Pro du ct motives are of
sec ond ary · Pri ma ry bu yin g tw o types - Pn ma ry an d
motives are the reasons du
on e class of pro du cts rat her e to wh ich con sum ers bu y
tha n another. Th ese motives
nee ds ~d wa nts. Th ese inc arise directly from hu ma n
rec ogr uho n etc. lud e the des ire for health, bea uty
, kno wle dge , relaxation,
Se con dar y or sel ect ive bu yin
g mo tiv es ind uce con sum ers
pro duc ts. Th ese inc lud e des to bu y cer tai n kin ds of
ire for convenience, dependabi
Patronage mo tiv es ref er to lity, durability, economy etc
the factors tha t ind uce con sum .
out let s, bra nd s or ma nuf act ers to bu y fro m cer tai n
ure rs and not from other.
Th ere is a lot of differenc
e in bu yin g decision of a soa
dec isio n-m aki ng beh avi ou p an d a house. Dif fer ent
rs are used by a bu yer for
to Ho wa rd and Sh eth mo dif fer ent pro duc ts. Ac cor din g
del of consumer buy ing beh
dec isio n-m aki ng var y consid avi our , types of con sum er
erably
1. Ro uti ne response behaviour an d are classified as follows:
is usu all y found in case of fre
low cos t ite ms . Le ng thy sea quently pu rch ase d an d
rch for pro duc ts is no t att em
eff ort nee ded is bar ely mi nim pte d and hence, the dec isio
um . Th oug h consumers are n
are als o aw are of alt ern ate bra nd conscious, bu t the y
bra nd s. Th e purcnase decisio
cat ego ry, her ein , the pro du n to bu y a soa p falls in this
cts are pur cha sed quickly and
as pe r per son al liki ng . wi th a little me nta l effort
2. Lim ite d decision-making
is use d in the case of purcha
les s fre que ntl y. Th e inv est me ses ma de by the con sum ers
nt nee ded in ~ case is compar
may acq uir e inf orm ati on abo ut ably more. Th e con sum er
all the availab~e _bra nd s and
exercise wo uld follow to arr som e art:ount of me nta l
ive at a final deos1on. For exa
tel evi sio n set req uir es a mo mple, bu ym g a lap top or
der ate am ou nt of time for
del ibe rat ion . information gat her ing an d
3. Extensive decision-maki
ng is req uir ed wh ~ a co ns
un fam ilia r pro du cts wh ich ~e r w~ ts to pu rch ase
t all
~e t~ y new, hav mg a_
bough gener ,v on ce in a lifetime, for example, bu ym
"'e;1 hig h uru t v.alue an d are
. aki 0 a hou se requrres
com ple x type of con sum er n the most
decis1on-m g.
(b) ~ Q. \ °;'[!:~in
1 tod ay' s day and age, one can
[Page -10
(i) Mo b e E (almost) ov.'llS a mobile pho not liv~ wi ~o ut. a mob~e
ne the pn ce ol wh ich van es
ph on e. ~e ry 0
fro m n,
;t,50,(XX) dep end ing up on the buy ing
capacity ot the person.
Th ere ear l be to d hie segmentation which co,
em og rap ·ers age, invoice and

Apart fro m tha~-~::~s,

ge nd er of the bu yer .h .

U$3ge, Rate, rea l

1 se$ffientatfon comes into play, which covers
user status, loyalty etc.
276 ■ Shiv Das DELHI UNIVERSITY SERIES

(ii) Bicycle. ThP market for bicydcl'l r,m be• s~•gmcnlc•d. on the bc1sis of demogra h
and psychogrt1phk foclori-i. fk1110gr,,ph1c fortnrs mdud P i.lW\ g<'nder, inc p ic
statu!1 nnd gl'llt'ratinn. Bicycle iH ,1 Vl'ry imr~1rtnnl modr of tran~por;~e,
you1~g collcr,l' goi11A sl11d( nlRb1.'lon~ing to low u 1tr,me group. S1mil<1rly rna:
1

low mconw workl'rl4 •dill U'il' h1cyd(• ll 'l il ttll'(111Y of fr,mc.,port l'c;yrhogr L.Y
scgmcnt,11tnn. ,1lso pl,1yfl t1 kPy rol(• ,1., nMny rwop l{'' 1"'' f-JH yr l, ,1, ;is a m1•an
ilP111t
f
0
fit1wss ,md n gul,1r l'.>n'rcisc. Some usP them t111 ,1 pdrt of thdr lift:styl". Ms
1

bi1.~yclc bra~~ds promote their products as c.1 tooJ lo m,tinfoin ~hysk;,i .i;:~L
b:mg ~nd htncss. As per the needs of the cw, to~crs, Vt1:Jous bicycle brallds
offer different types of models like road, mountam, hybnd, All terrain ttc.
Or
(a) A consumer wants to purchase a Laptop. Explain his buying decision proces,. 8
(b) Differentiate between niche marketing and segment marketing. 7
Ans. (a) See Q. 14(b), Chapter 2. [PagE: 38
(b) Segment Marketing and Niche Marketing. The firm may decide to divide
the market into sub-markets having homogeneous features. Market segmentation is
. ~he process of taking the total heterogeneous market for a product and dividing it
into several sub-markets or segments each of which tends to be homogeneous in
all significants. Market segmentation is customer oriented and is consistent with the
marketing concept.
Market segmentation enables a company to make more efficient use of its marketing
resources. Also it allows a small company to compete effectively by concentrating on
one or two segments and creating its niche in the market.
The market could be segmented in different ways. Instead of mentioning a single
market for shoes, it may be segmented into several sub-markets ·such as shoes for
executives, doctors, college students etc. Keeping in view the available resources, the
marketer will decide the target market and then to satisfy it, an appropriate marketing
mix will be created. By making effici~nt use of its marketing resources, the firm will
be able to create its niche in, say, the shoe market meant for Doctors only; the firm
is able to satisfy its Doctor-customers by concentrating on this market segment only.
The marketer must keep in mind the following points for segmentation to be
effective:
(i) The bases for segmentation must be measurable with obtainable data;
(ii) The segments identified must be accessible through existing marketing
institutions, and
(iii) The segments must be large ertough to be potentially profitable.
Differentiated (Segmented) Marketing. It is also called multi-segment marketing.
It is a strategy of market coverage whereby a business tries to cater to dearly
identified market segments with a. definite product and exclusive marketing strategy
customized to each separate segment. _
Concentrated (Niche) Marketing. It is also a strategy of market coverage when'"'·
a product is developed and marketed for a ·very well-defined, particular segment ot
the consumer population. -
Differentiated Marketing Conce11trated Marketing _
• • Typically adopted by small finns
Ideal for companies wishing to grow.
just beginning their operations.
.
. d approac
. a require h for firms
d
• It 1s
• An essential approach of bi_g with inadequate capabilities an
. . tending to defend thctr
compames m skills.
market share.

-
 I ltlNt 11'1 I 11 OJ MI\Jlt:f JIN<. 1ffl1 -.OY4iJ.') • 171

• A
hn,
~)l,d ~, 11, 11,~ wh,,
,pp!lt d 11\lu
1• Ad11pt, rt I
plorw,•r&fr w, ,rail('~ •
~'-'1:-~:-:-----:"~~:._,;._~~.;_~~--~~---
Q. ~. I x t;t,.tte~l!i, 1
(~) \\hat,~ the ~,g1\lfhanrt.• ul ging7 What ire th.- m1ln uriit. uf Wt~rl1?o
A.n,. (n) ~"l' \J ,o. t h11ph•r L Y~s-: ?9
(b) s.;,,_, \J. l.'\ ru"t ~ - l4, Chnplt't I. lf'~;:t' lf1~7·
Or
(1i) Diffrrenlillh' bd\\'l','tl lim• l'11th!11sion and brand exhm81uns. £
\h) • 1'1'\ldui:t supp(,rt !'ll'rvkct\ lwlp the M.• llct au~ment th~ pruduct w1d/' 'f.il;pa.zr;;..
i
An!-. {u\ Liu,• r, lf11-,in11 H'il•rs to the l'Xp:ml>ion of an ..-)'J$jtir g product !li:te. ,...-;,:
m:-t.mt'-', ,\ l"l'rfoml' m.,nut,,ctur1.~r mii•ht it,troduc" a dtrus variety to Jb ~ . i . ,....e ,.,.~
Smtll.wly• ., jut('l' m,muf,h.lUrl'r might'intrndun~nt>w flavows H}:c man;<>, .&t.. ~p~
t'tc'. m 1ts l~th:' c1i Jm(es. Thu., Urw l'Xh•nsion add-, varidy lo its existing ptOC•J,Z fo~
dl(' ~k'-' ('II r.:.-,1thmg .-, nwr1.• diVl'f!,I' custonwr-ba~e and ,mtidng existi."lg ~to;:::~
\dth n~,, l''rhon-. ln simpk• words, Pr0Jucts-Lin1.: extension is a ma.r}.eti.."lg tl~e;y
that u~, .,n l',i-.ting brJ.nd to introduce a nt!w item into the 5ame produc:A.i:::-e. T..::i.e
ne-w 1t~m may d1ifer ~lightly from what a mark(•h!r already offers. foliv:W"i.-n:; ~
certain,, a~~ m whtch a product may differ
• Ingrt."dients • Flavour • F.orm
• Colour • Packaging ~i.7...e
Braud extension, on the other hand, refers to the expansion of me
:b.ran.6 ~~
into ne,, territories or markets. For instance, An automobile manofacturer .l.."":l ~
a line of automobile accessories like seat covers, steering covers, batterl.es 1e.,.'1de:- m
company nAme.
Smee the brand is already established, it can serve to drive custome:s to it:-1: ~ ·
products that may relate or unrelate to the older product lines. In other \'\'Otd.s,i,,::~=td
extension is the introduction of an altogether new product that relies on the ~
and reputation of an established product. Nike is a very good example oi ~
extension. In adrution to sports and athleti~ shoes, the company also sells ~~
accessories and even technology products like fitness bands and trackers.. rne~5
extension strategy aims to leverage the brand equit)_' of an e.,tablished brand. .to L..-.Of.1!5P
the chances of success for the new product or service.
(b) Pro,Juct support services help the seller augment the P;OOUct. Customer ~ia>
is an important element of product stra_tegy. A company s offer usu.ally L ~
some ~upport services, that can be a mm~r or a_ ma1or part of the total o.fferi:ag.
Customer support services are concerned with various ~rocesses that make sure itha1
the customers are satisfi1.>d with thl' pr()ducts and_ St.>n·1n~ of the Orgams.ation. The
need and demands of the customers must be fulf1~led by the marketer 50 lliat ~
sprC:d 3 positive wor~ (If mouth. Afll'r •mies sen·1C"cs are the rnapr C'Omponem of
c ustomCI support St•rvJCt'S.
Af ter-P Ie serv1
.
·,,,., provide"· a cutting edge.
• ,
•, .
Ilht" 1sI a com~ statement· ~
et full atkntion ,•wn a{tt•r s,t~l's. l u bu1 d ,, _unf h·nn bond_ ~'1th ~
r------·
must g . h Id l only tr ,in thl'll' ~llll•spNSlln'i Jn \;_ustoml•r satisfaction 001 also
companies s ~,u no ' l · L..__ _.
• f II )W•UP 1.,r0 gr,rnmws to u 1 tom cu.stonwr .u.~badc and identifv
regularlv cond ud (> t
. 1
, · t · • •t
for improvcmt.•nt. I u m,un am lw; omer 5au" ...:.raction.
· ~~
possible ai:eas le follow-up through the l'SP (Personal Services Prou:cis}. 1n
must pro_v1de post_ sal ~,pie haw to nuw~ beyond transactional selliqg. lbev must
modem times, the sa es t • · •
278 ■ Shiv Oa" m I 111 UN IVU
RSl l Y SrJ<IE.9
.
gn f(ll' Rd,,t 11,n,.hip &>llmg 11t1d , · , J' 1rtn cr~ hip , A"' alm ost all
• ·cr\' bit ,,t,•g,r ' the
(hft HI m.1 m1f o1 h11t•rs h tt\'1• \ I11' qati , f , t11rr•s it••1R nn Iy t Iw AftM prod ucts 0 f
d1ffcre nli, \trs tlw pw1i11d s
ll en ' -sa le se..,,·
ftn m nl\1' ,mnthf'r, • vice Which
Q. 4, (a) How ,hir.s a vrrtlr11 ,
I m11rketlng 11ystem differ fro
markrting ehannrt7 H~1,laln m a conv.-ntionaJ
(ft) U,vlah, the various fador11
whkh lnf1uet1<'.e the _Prion . . . 7
Ans. (,,) Convl'nUonat Ulstributi g dcw mm of a firm? ~
on Channel. ft lg mo st . <..<m irnr
1."h,rn1wl ,, hKh l'ntnptic;cs of n pro
~·1'>11,,tc ent itie s act ing ind epe nde
Verti('a\ distribution Channel.
ducer, whole,JJerc, and Rcta,lt-rs,
ntly
m distrlbw,
vii of them
g
'tx:
It ma y inc lud e a cha nne l_of produr
rct ,uk rs, all bei ng con trol led by t'T, wholes~le; iiind
one ent ity, the ow ner , wh ich gen
£..tmn11le: Marketing Sys tem of Zar era lly I'> the producer
a.
Biisis Co11ve11tio1tal marketing sys tem Vertical marketing syste-m-
Ow ner shi p/ Suc h cha nne ls con sist of one
or Un der suc h a marketi--;;
control mo re ma nuf act ure rs, wh ole sal
ers sys tem , one me mb er of the
/ dis trib uto rs and reta iler s cha nne l either ow ns or wields
tha t
ope rate und er ind epe nde nt suf fici ent lev era ge to control
ow ner shi p. Each bus ine ss ans we and coo rdi nat e the activities of
rs
to its ow n ow ner , sha reh old ers
or oth er me mb ers in the channel.
boa rd of directors.
Th e cha nne l me mb ers continue
to ope rat e as dis tinct entities
but bec om e acc oun tab le to one
ow ner or the most powerful
cha nne l me mb er. ·
Cooperation Eac h me mb er in a con ven tion
al Members in a Vertical marketing
ma rke ting sys tem , focuses
on system, tend to recognise
min imi sin g costs and ma xim isin
g the symbiotic nature of the
its ow n pro fits wit h litt le reg
ard relationship ·between all channel
for oth er cha nne l me mb ers .
members and aim to maximise
benefit thr oug h cooperation.
Responsibility Suc h a sys tem lim its the Un der a Vertical system, the
res pon sib ilit y of eac h me mb
er ma jor ity of res pon sib ility tends
of the channel. Retailers foc
us to fall on one cha nne l member.
0n selling pro duc ts to cus tom
ers The add itio nal responsibility
wh ile ma nuf act ure rs foc us
on is not a cau se of concern for
ma kin g pro duc ts. Wh ole sal
ers big com pan ies as the y haw
focus on mo vin g the pro duc
ts stro ng ma nag em ent teamS-
fro m one place to oth er.
Vertical sys tem can creat~ lot
of cha llen ges for smaller firms ..
Problems Un der this sys tern ,co mm uni cat
ion Cre atin g a Vertical distrib~-
bre akd ow ns often occ ur bet we
en tion sys tem can result ~n
ma nuf act ure rs and wh ole sal
ers red uce d profit margins. It 15
or bet we en wh ole sal ers
and ver y cha llen gin g to man,1ge all
reta iler s due to technical the members efficiently u11der
or
logistical issues. the Vertical marketing sy stern-__
(b) See Q. 3, Ch apt er 5. [Page 87
Or
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<\c,\I !•llun •, Art,,tzon lti thl! Numbt;r one
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1t dl'\h,'l'r!, tlw pmduc.-t'i .tt lhc c·us torn t-r'i,
m\;'htioned dest inl\t h,n, nnyw \wrl ' ,n tlw
wnl'ld. l)irt>t'I 1-wlhni-s, h:h·m arkc t1ng ,
Aut omu tk ven ding, direct rn,,rkl'ling etc. i.\l'l'
otlw r forme-1 of non -Hlor1' rt•ta iling that
. hav e gain ed popu lnrit y in the rece nt pO!,!l
. Due to grnw ing popul,1rity of non•sto rc
reta iling , mm e 1,nd mor e com pnni cs nrt' joining
lhc non•:-itor e reta iling l;l'Ct or. ln Indi a
Flip kart , Myn.trn, Sho p c\uL~S: Big Bosket'. Reli
ance Retail, Am. ,zon etc. ,m: fow big
nam es in the non- stor e rctm lmg s1...-ctor. 1debrnn<
l$, N.,c1ptol, l lom c Sho p _1 8 1.:tc. arc
som e othe r pop u\nr brnn ds of non•stort' rl'tni
ling in Indi a.
(b)
Bas is Cos t-ba sed pricing
--= ::.: :=. -+- ---- ---: --:- --'- --:- "-- :--- r:-- -:-- -Valu e-ba sed prici,ig
D esc rip ti on Bnscd prim arily on data from Based prim arily on
info rma tion
Cos t calculntions. abou t thl.'! vclluc that the cus tom er
attac hes or c ..,n be indu c~d to
attac h to the offo nngs .
-- -- +- -- -: -- -- :- -- .- -
Basi c data is cnsy to obta in, <.>ftcn Can comt. ,= -- -- -- = -- -- -
Strength > do:.-e to exha usti ng
pen:-civl•d i1s fair by the cust ome r. the cusl
onw r's will ingn ess to
pny while t,,\...ing into acco unt
t\w c~,mpelitivt:.' situ atio n and
__ . _ . _fim,~1d.,l c<mst:.'quenccs.
_ e_a_k_n...:e--s-s- i &;, ;- n
_W -ol c~msidl'I' !Wl\ds and lt ~.,n be very .chal leng ing
com pl'li lion . lt 1..•,,n ll'su \t in to obta
in basi c information.
subo ptim al prid ng thnt n~ily r~~u~t lmp~ cme
ntati on may invo lve
.n
1 too low or too high pncl 's. l his ud.d1tional cost s and .
. resu1t in
Can d isco urag e sales . resistance. Cus tom
.
perc eive cert ain aspecters f may
base d pric ing as unf . s O value-
a1r.
iRll • b hh l),1" 1,11111 \JN l\11
lt~l I\ ~, Ill I q

t ,,sr ,,11,, I" ;, ;,,s ( ~1111 ,t1.11111g tlll' 1>• I• r111111r, tile ndi1, <.I
111,;I ,mil dd1•11111nlnp, H m 111 k•1 1 ol " I" I
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• ri
l'•'Y fIll 11 JilV (.'tJ
11,. I!,
J!l lldlJ f '
lht•f1 . ldf'nlifytri,r, H1,, re 11l~ld
«111 111 b11\J1m lo pn,fl1, Cl
Q. 5. (,,) ''lt is five times more exp
l'nRlvc lo find m•_w <'Utilomi•r11 thM
(',isling custol\\crs". In the light of 1 lo rtt,Hn
thi!i 11tatl'mcnt,.cxpl.i111 rt•l<1tlo11 11h1
{I,) What is Integrated marke p tnM k1>li1tv,? 7
ting communicahot1? Wh ,,t f.id
~w (lr' I h,1v J,,(I
oo 1• ti1 fh
Ans. {,i) Se~ Q. 14, Chapter 9. g
{b) See Q. 17(ti), Chapter 8. lf'iig,, 167
Factors that have led to the gro
wth of lntcrcstccl Mar~cti ng 11'ilg1.; W,
1. Change in buying pattern. Cnmmunicafom:
ln rec ent years, the b_uy tn~ p,~llcrn~ h,iv
and more products are being sold
online rather than being oold m
t: ch,mKi•d
therefore need lMC. trnd 1l1on,1I marb:t~
2. Growth of Digital Media. With the
constant growth of digital media th1•
control over information and awa
reness has increased, resulting into
consumi:r,'
3. Emergence of global markets. The a major shift.
world tod ay has i;hrunk and .:iny
anywhere can buy anything from body sitting
anywhere . The emergence of an
given push to Integrated Marketing unified cult ure ha,
Communication .
4. Availability of Database. The
availability of data of all kinds of
the producers in influencing and consum er hf'lp
building relations with the cui,
Integrated Marketing Communic tomers through
ation.
5. Introduction of new communic
ation tools and technologies. The
evolved so much that it has a dis technol ogy has
ruptive impact on our daily life
consumers to have greater control . This has allowed
over information and communic
can be choosy and have control on ation. Consumers
what to see and what to hear, the
the role of IMC. reby increasing

(a) "Digital Marketing involves

Or
usi ng several forms of digital
connect wit h potential custom communication to
ers". Explain
lb) Ho w wo uld you design a pro 8
motion mix for a shampoo for
An s. (a) See Q. 44, Chapter 9. men? 7
(b) Men's shampoo comes under [Page 194
the product category of men's gro
a strong brand identity is crucial oming. Building
for success of such products. For
brands, collaborations are done wit such products and
h the popular Influencers and Cel
purpose of promotion. A well des ebrities for the
igned digital campaign is a mu st
especially in pres~nt digital age. for such a product
An
such a product. The main idea beh online loyalty programme can do wonders 0 r !
ind is to build a community and
it. Apart from such initiatives, hai keep ('xpanding
r specialists and dermatologists
the purpose o( promotion. Good can be usrd {llr
online presence along with televis
advertising can be a good option ion and Youtu~
. Print ads in fitness and health
good idea. Buying some adverti mag,wim•s is a
promotional tool and saloons.
promotional tool is not a good ide
sing place in popular BJ.rbcr sho
In present marketing scenario,
ps will be an° 1h
relying on a 5? 0
t
a. Hence, a marketer has to opt for
of promotional tools .that best sui n
t the brand, product and satisfy the combi_nat~o~
needs of the company, commumcatto
♦♦♦♦♦
 Introduction

(Marketing and its Concepts)

Q. 1. Defin e ~uarketing and explain its nature/characteristics.
~s. Marke tmg refers to a social process by which individuals and groups
ging
obtain what they _need and want throug h creating, offering and exchan
the
produ cts and servic es of value freely with others. It is the sum-total of all
te
activities that facilitate flow of goods and servi~es from produc ers to the ultima
consum ers.
In simple words , marke ting involves study and manag ement of exchange
the
relatio nships . It is used as a tool by business to create the customer, to keep
with all the
custom er and to satisfy the customer. Marketing is concerned
or
activities of a compa ny which are associated with buying and selling of a good
ny's
a service. It involv es activities that aim at making people aware of the compa
be bough t and
goods or servic es and makin g sure that these are available to
of
availe d respec tively. Marke ters are involved in marketing various types
ties,
entitie s like goods , services, experiences, events, persons, places, proper
comm unicat ion
organi zation s, inform ation and ideas. Marketing is an ongoing
a
exchan ge with custom ers in a way that educates, informs and builds
tes
relatio nship over time. It is the process by which a firm profitably transla
and comin cing
custom ers' needs into revenu e. It also involves building a brand
and
people that a partic ular brand is the best. It aims at satisfying the needs
le
wants of the custom ers and thereby retaining them for the longest possib
and
period of time. Marke ting attracts consumers' scare~ resources, attentio1:
a
dispos able incom e to derive profitable revenues. It 1s the process of getting
t
produ ct or servic e from a compa ny to its end-customers from produc
develo pment throug h to the final sale and post purchase support.
Definitions of Marketing: . . . . ,,
"M ket' com rises both buying and selling act,vifle s. . . -Pyle
ar ~ng ~ t , t/Jose e•fl'orts el+i•ct
which 11 '. . ,, transfer s III tl1t' t>l£lt1e~ lu11 of ~oods
· ~
"Marketing consis s O;1rov ·de fior11•
ph1Jsicnl distnlJt t t11>n. -Tous ley, Cfork & Clark
• d I · J1 1 · · f f · Jrom
nc Pactjvitie
and" service•s an · w[udes ~ involved i11 the .flow of s1)()1 s an, ~·11•1cc s
Markehng me . . ,, - Converse, Huegy and Mitchell
1 goods and
production to c~nshump :in· ti ·e (> 1 bll'-i11t•ss:, acth1itii·s tlt11t dirt'ct tlzt' •flow of
•
"Marketing is t e per.,orn m c 'I • •
• s from produce r_toDefini
consumer ur 11st•r,
tion Committee, American Marketing Assoc iation
service
1
 ,
2 ■ &hiv Da-1 OF.UH lJNJVJ ~:-,llY Hr~KH:.'., r' tY ',J
"Marketing ,en total r;yatem of fnfemrf/n9. fTfl&inP<ifl artimtier+ t/P f, J 1
,, diJlnb/ilC u1a,,1 t alf fying p,o;ft.1, Is and. tentit"IJ
promote, and '' pfrm,tprl(~-,
· inet 1 11nd
- ..., 1,,--pret.en Q, 2. Brief~
a,5/m1,er,;, 1 I'
W"J {I(> tntf1Jf }&Id• ObfeC}
' ti ng 1~ lI '" 11rocP~ nf d1swvermK ,,n,J lr1111~folm1, c,,ngu,n,,,',
"Mar,:L - ' ' " ' J
n,ed · bt.t ntt,,, (i) PtUV1
towa1
i,zto produtt aml .ero,u /1CCUl(111ion1, t rtflllflg ,J,'f/1/lltd J(,t Jl,11 "pmdt1a1 ~, ~mt TJ1~nt~ C(dl~t
and expanding tlu, d.e,,rancl." fJ nt &erwt:,,
"'Marl-et , 1 s, '· - ·
J,. Jfarr~
'/, '-' 11e11d mu! f1,t1fft6 th"tr,.7p
p,11Ce55e5 .,"g .ruma,i oct,vtty tfmx te,J at t1<1 ti '11in1. . ·
11
j,,t. P/ftrttn'j_l
(.ffoct
Jl"aTV
, Al. .., • • - PhiHp y ,,t( (ii} Jncre
N aturqC ,aract4!nsttcs of markP.ling: ,tr dfotl1
( 11 Customer ori'!nted. All mi.lrketing activitiec. .8hou1d i:,.,- ( J.. ,i,, Sati~.
oncn• t :!d l"L
c •
· ""'..ie-:
11t.')' 6hould start with id,•ntifying ff,. ,11!.ttm ,,(c, • ~:-. rw l
f~llo~ed. ~ dt.>veloping product'), prjring it, prorr1<,t,r,g 1t ~r; ~.(JV
;j,-e;
. distributing at as per th<.: customer's rcquiremeptc,.
(ri) lntesi:ate~ Proce,s. Being an integrated pt<Ke'rl, marketing frm:,i·rE::S.
coordmatton of many actt-,iti~ with other busir~1; functions ii.t::t
.. prod~cti?n,_ P:1'sonnel, finandng, rc.-search and dev!!lopmenL
(m) Multi-D1c;c1plmary. Marketing is multi-discipHn.ary as it ha;$ e-rolv~ out
of commerce and has got its strength from law, pc,ycbolw&, wciolo-gy,
mathematics and statistics. Jt is an art as well as a scier-:e.
(iv) Interaction with External Environment. ft operates within th£:
framework of external environment which compri~ of economic.
natural, social, legal, political environment etc.
(v) Mutually Beneficial Exchange. It means buyers get want-satisfyilig
goods and sellers get value in exchange of their goods leading to muht.al
benefit to both the parties.
(vi) Based on Sy stem Approach. It is based on system approach as it require:
intelligent coordination of four 'P's of marketing mix. These are Product,
Price, Place and Promotion.
(vii) Marketing is an Eronomic Function. :Marketing embraces all fr.e
business activities involved in getting goods and services, from the hands
of producers into the hands of final consumers. The business ~
through which goods progress on their way to final. consumers is flv:
concern of marketing.
(viff) Marketing is a Legal process by which ownership transfers~ In ~if
process of marketing the ownership of goods transfers from seller to me
purchaser or from producer to the end user. _
(ix) Marketing is a Managerial ~nction. ~c~ding to _~~ ~
systems approach, ".Marketing IS the _c~tio~ of a~,,aes ~€'51~
to produce profit through ascertanung, creating, stimulating, ,,
satisfving the needs and/ or wants of a selected segment of ~ ~~eLa,
Acco~ding to this approach the emphasis is on ho._._. ~e 1!'d \
11

organization processes marketing and develops the strategic dim.ens

7~
of marketing activities. .
(x) Marketing is a dynamic process. Marketing is a comp!e:x, c;;:tinu<JU=
lerne&
and interrelated process. It in\'olves continuous plaruung, P
tation and control
 l ~

ipln n
• I

Q :S•
1u;;;,;.;:,..._ _
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a:r.2
IDt: l !!IIH !Uttr .I:n !!"..O X
~~, -~, :f PJ.tSJ!'"ti.::.;;.
,acn1•J.h~ itu :n:::mg it::rr-:s.f.-~
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6rnd.1!:!~ .:I! ar 1 .1:a5 0 ~~ .:m:::m ,a:; ::n;.f,'t• f
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-~•;,
:>ff
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1et.emu::xog £:'.&fX =:tu::e.

nee&.. .......O f ~ ~ :;,e:n:::i::
11£, .zrl.1-
io )k c ~
; : : ~ IM1i':J :.'! l!tr '~
~~ D.,.,.,;D'.J:Y.eF ¥:a: ::o:5 - -~
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acf uifi e. !::la! ~ ..x
~ ::::ff" ~~.. .1£ :a::c
'M·a:its of lf:.p ~~

4.. Strategy
5. Hor iwn
r.:~ !!:- ~ in.. ~
Ma:-ke±n~- Ji5 m'5.1~ ii:: ~ :=er !Sil. 1;«C , ; ; £ ~
6.S cop e ~
atCL
a.~ i..-icb.des ~~ ::s
a.... ~ra e; ~ ~fia::rc':!:t'l~
tr~"J,, fud ::to i ):'.ui...'.LlLlt
and delieJ.~ irtcin::1?.
~ lf"J:c.
!Sit er:
7. Motiv~

•
bzn=~cr~~
]C me ra l~ ~f ec m : ~ ~
'~ V.tado1'
~
be-watt).
 Chaput 1: f1'.l?JJU"}D(;{,710N • 17

and pi.:rform th,: ~·rv1tt•, ;sr,J the intangible e'/4pel1en€e of existing

cu~tmr1 1•_ru itwJ tl1, abd,ty <,f the bu~mcs~ to relay the custmne.r'
0

tta fJfifnc tu,n lo pot,.ttti:tl <.:U6Mm1•r!f,

PMarketlng Mix J
Q, 21. Wh.,l do you nwan by Mark••ting mix? f!xpfain the ,,mcept and scope
0( e~pand,!<! n~,,rkc•ting mix. (2012;
Or, Why ai; 11 im!'ortant to hav,! a right marketing mi:I' Als<J dib«I~ the
t!le1ntntff of m.arkch_ng mix in brief. (2008)
An~. M,1rk,•llng 1rnx n•f1•rn to a combinatirm of far.JrJrr; that ,an be controll~ bv-
:, company_ lo influt•rn:c con·,unwr'"> to purcha~ jb products, fn other ,.lf<Jtds, ft f;
a 6t. l of ac:t,on~ or tncltc.s that a company u~ t.o prom<Jte its brand or product i.'1
1

the market. It ,., a blc•nd of th<! dcca,ion<, tah-11 by a r11arh:ter in refation to four
IMarker Ps, i.e., Product, Price, PJac~ and Promotion. These four P~ are ronsiderf.d as the
g Ptoh,• ll'tg
'1118es) elements of Marketing mix. f n E;impJe wordr,, ,\1arhiling mix 1s a set of tools mat
the firm uses to pursue it& marketing objectives in the target market.
To meet customers' needs a busin~s must develop products to sati.sff t . ~
charge the right price, get the goods to the right place, and it mu.st ~ the
~tomers existance of the product known through promotion.
According to Philip Kotler, 'Marketing mix is the mixture of amtrolfaJ:;/e ma-1,:.eting
variables that the firm uses to pun;ue the sought level of sales in the target marf..et.'
is External MarkeHng. In the words of Laura Lake, 'the Marketing mix is- a mixture of marY.eting tools that .
are used to please the customers and the company objectives. Customers frequmtly call
e to their customer 111 the marketing mix 'the offering','
Traditionally marketing is controlled by the following variables often referred
as the four Ps (Product, Price, Place and Promotion).
Elements of Marketing Mix: _.
(z) Product. A product is any goods or services that_consu:mers want. It IS T~

bundle of utilities or a cluster of tangible or mtangi"ble attn1mtes. ;.t

requires decisions w.r.t., the size and weight of. product, qualit}~ of
product, design, volume, br~d name, packaging, range, testing,
warranties and after sales-service etc. _ .
(ii) Price. Price has a direct influence on sales volume ~d prottts ot
business. Demand, cost, competition, gov~~t regulati~ etc. ~- the
vital factors that must be taken ?'to C':'1151derati~ It reqtnr:5 d_ea:
to be taken regarding basic. pnce, discounts, pnce alterations,
terms, freight payment etc. .th the brin · g of products to the
(iii) Promotion. It is concerne: wi d. the!1t'o buy these It involves
knowledge of ~ustomers an . persua I mgforce direct mark~ting, public
decisions relating to adverti5 mg, sa es '
relationships, advertising budge~ etch ·cc of place where pyoducts are to
(iv) Place/ Distri~ution. It invo~s t b~;ti~~
of selecting and managing n:ade
be made available for sa!c· bl e ~ J oducts to the customers at the nght
channels is to make avatla . e t e p~asis. It is also concerned \\"1th the
time and plac~ on a hcont:~::i~e and retail outlets of distribution.
decisions relating to t e w 0
18 ■ Shh• Da" l)l 11 11 11NI\ 1 ~1..,11 , ~, 1mY {t llt'Sl
Tlw 4l's arl' ~l.md,,hl mpo11r nl 4 nf n1111td lng ,mx in W~(.l of r,roduns biJ
t1 1

,,1 Si.'l\ l('\'q [tnllmglH I 111 IMI 111 l'.') thig llllH ht lnu flll } I h · •t !111fl1Ciflnt ~1ft
'-' clS\'
1,l~'\t h, '-''l'i11hi \\w 4P~ pf m ,11 }.(,•tlng '1)1 11ddi11g ,,,.,,,,,,.,
,,111rlrnl l l.111/11,ue ~.
procr~:- 'mh' t1,1, p1d\111\
' l tf1u 1 nl p,1qt II l1i1 1, I,e, 111111• t11tu , tomrn<.m at:.i
h, I"' to
th(:S(' d,,nwnt~ "' \\w h,,dilinnnl m,ukl'l ing 111ix m,1~n11g it fl Hirninati•m ,~;4
11,is ii:; C,l\lcd C'.\ll'Hd l~d m,,rkding mi,. ~
{t') r"''I''•'· While t-cr\111,;ing tlwtc ic; 11 dire(:t intP1,trtio11 of t>t•rvic,, r1rc,v,(f""'
,mct ~\ 1n'-unwrs, hl'l1Cl', !-uhjl·l'ti vity \\ ill l'l(' thrrc. ·1he d1x1.sior1t. that fh,
nMrkch.' t C,'11 l,lKl' l ,m• 01 ,ll r . ,1ppci11,111tc, ~crvicP, tr,1h1iny,, cliS(reti(Jr
Cl'mmilmcnl bd1<Wlom, nm-,umcr intl'r,Ktion ,incl ,1ltitudc of the !!CtVk'.,
t'rcwidr1 .
(, i) Pliysic,ll cviile11cc. It 1s one of the most importa
7
nt f,1ctorR of mMkehng
nnx. DC1:1s10n:.- like r1mbiencc, furnishings, ,ltmosphcrc and lvyout oft~
wNk rlace ,ue n~ry important.
(d1) Proass . With sernces being non-homogeneous in nr1turc it is necessary
to hm e standardized procedures to be adopted for delivering the service.
Herein, the decisions like policies, procedures, syc;tem and custome:
inYolYement are to be taken care of.
\ A keY implication or an extended marketing mix is that the seven clE!mcnts
need to work even closer together for marketing to be effective. Extend ing the
marketing mix by adding physical evidence, people and process to the usual 4Ps
connects the marketing function much closer to the marketing objective.
Q. 22. Explain the concept of extended marketing mix.
Ans. Tl1e extended marketing mix has tlte following elements:
(1) Product decisions. The term "product" refers to tangible, phys1"a.
products as well as services. Here are some examples of the produl· c
decisions to be made-B rand name, Functionality, Styling, Quall~· a
Safety, Packaging, Accessories, Warranty, Repairs and Support, etc.
(i1) Price decisions. Some examples of pricing decisions to be made include
Pricing strategy (Skimming price, Penetration price), Suggested retail
price, Volume discounts and wholesale pricing, Cash and early paymt.'nt
discounts, Seasonal pricing, Bundling, Price flexibility, Price
discrimination.
(ii0 Distribution (Place) decisions. Distribution is about getting the product:
to the customer. Some examples of distribution decisions includt
Distribution channels, Market coverage (inclusive, selective, or e,du,1\'t
distribution), Specific channel members, Inventory m,rnagenwn~
Warehousing, Number and Location of Distributio11 centers O!'1.k
processing, Mode of Transportation, Reverse logistics, rte. .
(iv) Promotion decisions. In the context of the mnrl,..l.'ting rnh. pr\ll\\11h1>r
reprcsenl'S the various ,1spccts of markl'ting commltnic,,til)O th.,t 1' thl
communication of information ,,bout lht• prl..lLhtl'l "ith tlw ~,~,, . d
, ·
generating a positivl' custonwr rt.'sponsl'. M,trM't inµ l'1)1\'1\\\ lllt,,•,n,,r•
decisions inclucll' l'romotimMl slri\ll'gy (Push, Pull, dd .i\d,_1..•rll"1~
Personal wiling nnd s,,li.•s fOl'l'l', S• ,, I,,._ ·prnnll)t I1H\S, I' lll1l'll• 1·"11hllll'
, • ,ui,
publicity, Marketing communk,,tiom, bud~l'l, t'll:. dn'
The marketing mix framework wilA particul,nly useful in tht) e,irl) '
20 I Shiv Das DELHI UNIV ERSITY S.ERfES [CJJCSJ

'Marketing Environment)
Q. 24. Explain the term marketing environment. Why scanning
the Mark .
? eting
environment is a crucial decision making criteria for marketers
nt·that
Or, Mention the forces in micro and macro marketing environme
likely to influence an organisation's working and functions. Is
environmen:;
scanning necessary fqr all organisations?
forces tha
Ans. Marketing environment refers to the external factors and
ctions and
affect the company's ability to develop and maintain successful transa
'
relationships with its target customers.
t consists of Eh
. According to Philip Kotler, 'A company's marketing environmen
p and mainta~
internal factors and forces, which affect the company's ability to develo
ers.'
successful transactions and relationships with the company's target custom
ronrnent.
It is divided into two parts: Microenvironment and Macroenvi
the immediau
Microenvironment implies to the factors and forces in
its market. These includf
envir onme nt which affect the company's ability to serve
etitors and the public.
the suppliers, the intermediaries, the customers, the comp
activities tha·
Macroenvironment refers to the external forces in the company's
extern factors an
al
do not constitute the immediate environment. These
cal forces, social an(
demo graph ic forces, economic forces, legal and politi
cultu ral forces, physical and technological forces.
of certain forces ir
Forces in the micro environment. This environment consists
to serve its market
the immediate environment that affect the company's ability
These factors are:
(a) Suppliers; (b) Market intermediaries;
(c) Customers; (d) Competitors;
(e) ·Public
of your busiri~
(a) Suppliers. A key supplier can be a very important part
tage. Losin g importarr
and may even attribute to your competitive advan
edge ail(
suppliers can interrupt production flow or your competitive
ers. Therefore
preve nt you from getting your product to your custom
onshi p building- al
choice of suppliers, negotiation of terms and relati
become important tasks of the marketer.
lers). You It
(b) Market Intermediaries (Distributors/Wholesalers/Retai
business may require a network of whole salers , distrib utors andf 0

e in gettin/
retailers. These 'intermediaries' provide an invaluable servic (
tition as no
your products to the customer. This area can be fierce in compe
the~ want.
everyone can get access to the channels of distribution that (ii
ts of fIVe $
(c) Customers. A target market of a company usually consis (i
t, r ke
of customer markets - the consumer market, industrial marke
marke t, and intern ationa l I11~!
market government and non-profit (
custo mers with differe nt nail c
All the~e markets have different sets of
tater to
wants and demands and a company should be able to 0
(v,
.
them. motive as Y
etitors. Your competitors however have the same er. ;.s (vi,
(d) Comp • fy' th ds of the custoI11
. d e nee
when it comes to sourcing an satis mg
 Chapter 1: INTRODUCTION ■ 21
t competitors are
m,:Ukl•kr, you rnttst tlwrl'lon• not only mon lIor Wha bl
tfoing in the (1 \lt'nltll m,11 kPling l't1 vitonm1•n l, but yo u must also_ be a e
to ,,ntkip., h• tlwlr lik,•ly n•spn11•-u- lo your n1mp,1ign8 and to predict what
tlwy will do lommn1w .
(r) PuMk. A puhlk Is ddi1wd ,Hi ",my group tlwl ha ~ an actual or potential
inh'1'1:'~l ln nr impod on a company's Jbility lo clC'hicw it<; objectives".
Publk rcl,llions is certainly ~1 broad marketing operation which must be
t.lkc.•n care of.
forMS in tire macro euviromnent. The macro marketing environment takes into
a('('()unl all factors that ca n influence an organisation, but are outsidE.! of its
control.
There are six major macro marketing environment forces to deal with (PESTLE}:
Political, Economic, Socio-cultural, Technological, Legal and Environmental.
(i) The p_olitical environment includes all laws, government agencies and
lobbying groups that influence or restrict individuals or organisations.
(i1) The economic environment consists of all factors-such as salary levels,
credit trends and pricing patterns that affect consumer spending habits
and purchasing power.
are (iii) The socio-cultural environment includes institutions and other forces
and that affect the basic values, behaviours and preferences of the society-
all of which have an effect on the marketing decisions.
m (iv) The technological environment consists of those forces that affect the
ket. technology which can create new products, new markets and new
marketing opportunities. 1
(v) The legal environment also affects an organisation- even though a
company cannot directly influence any laws-lobbying or becoming part
of a trade organisation is widely accepted in helping to 'shape' particular
· ·ess legal decisions.
Environmental s<;anning refers to assessing the various aspects of the
rtant marketing environment (micro and macro) such that the knowledge may provide
and information to make some predictions for the future. For example, if a mobile
rfore, service provider is aware that the government is opening up the 3G spectrum, it

rbns~; would be able to make a forecast on the demand for cell phones with these
services.
It is necessary for a marketer to scan the marketing environment by way of.
. (r) Understanding and analysing the changing needs and- preferences of
customers.
[ _not (ii) Taking initiative in lau11ching products and services for satisfying the
t. unmet needs.
peS (iir) Anticipating and countering the ~oves ?f the ~ompetitor~.
uer (iv) Designing and modifying marketing m1x to flt the requirements of the
et consumers.
dS1 (v) Identifying and anticipating the opportunities and threats for the
1 ol enterprise. .
(vi) Acquiring strengths and removing weaknesses for facing the threats and
exploiting the opportunities. .
(vii) Adapting the firm to uncontrollable envrronment etc.
 2021 (NOV-0£C)
Narne o( tht! Paper : Principles of Mark,.ting
Namt. o( th.-, Cours•, : n. ( om. n f •ms.)
Sr.n1~ttU!r : V
ournfu'ltl ., ,u,m11 Nlnximum Matks: 75
llltrm111 tww Jm,r q,,e tum
c,wal mark
A 11 q11 1"!;t,o,r ea,r,,
Q. 1.• " h:xmy. hotel w,1s huilt . in Agra whkh daJms that every room of it.s
hotel g•~ cs liaj view.Atta mark_f'tmg m:rnag,,, of hotel fodustry what marketing
mix \'a11ahles would you kN!p m mind while devefoping ~uch a unique s.eJJing
pN'rositinn?
Ans. I )l,finmg ,, propN m,,rJ•~••ting mix for hotel industry is 1mportan! for the
sur.ce~s i,t hnt(•l's m.1rk<1ting efforts. A hotel should have the right f.aolities/
scrvi, e!- (Prodt1(t), good promotion,11 s trategies (both offhne and onfineJ and
finally Hw most important right pricing. A luxury hotel is one that provides
lu>."Urious accommodation and an experience for its guests, and is often seen as
a destination in and of itself. A luxury hotel typically caters to a specific clien!eie
and aims to create the atmosphere that its audience de.5ire. Now a days a hidl
percentage of travelers focus more on experience than cost while choosing
accommodations. A luxury hotel grants it& guests an opportunity to -indulge a.~
truly enjoy themselves. Consequently, some guests are willing to spend more
on luxury experiences. A luxury hotel is viewed as a One stop shop fur food,
rcJa.xation and experiencing a 'destination within a destination'. in the gh.-en case
he spread of Co\id-1~it1a the luxury hotel is located in Agra and claims that every room of its 'hotel gh,es
taff is the every one's d1 Taj view. This unique selling preposition can be offered v.;th the help of Llte
uced many new 11:. irll~l
• l ••
Jl',dWI following marketing variables:
- Product (service/facilities). Product in the context of h.!xwy hotels is
ns and experieocei~~ concerned with various services and facilities they offer to their customers. Apart
9. The pandemic~~f!I from providing the view of Taj Mahal from every room, the produet element of
·re customer~~ the hotel will include the following:
entl dsaf~• ~I • Comfortable rooms • Food and Beverage
,e he~th an )ti~ prttJ~f • Banqueting rooms
• R ational facilities
• Conference fa~lities ,, __ .
• Health and \\ ellne5s racilihe5 _
wtiOll to ,-.:.,;
f(h'-" A,inr to t'-
. 1CliVt-1"· oie~~-.i xecu 1ve ]ounge
• Eecre t· • Express check-in . ..
checkout Sel"\. 1C"t'.S
• Travel desk • Parking foci 11tiC'S
,a ~-~ ~'I,· • Busines~ Centre etc. • • ~ d with
pttice<i~i(e~,11¢ ,f, - Pl ace an d d 18
. tribution This t.•Jenwnt of markcting nux tS C\.)ll(.'\!mt'(
f hot"l mdu,trv tht-- pn--xluct
~ . ~deJJ~~, r; • (
accc."tisibility of the products to co~:urnt·:5t~;t>~~~~,c to \h~ pn~;1ct Pta-."'t' and
ra~ 9r.~ 91··\ ~-f}
1: 41
does not travel to cu!Jtomns. In~h d cu. f . that dt>Chle5 Ow future of th,•
~
nO' ··.i1t11,~~ location of th,, hotel is a vny l~•por~,u~t clCht",rnt ;" dw h\,tt'l d,1lm, that c,~ery
,r f°~e l
r ,~
~~l I~ .
busmet:;s. } . l'l·wt• 1s vc-1 y unpo1 • ,
IIJ.
Jn t lC given cr1r-.t• ' • · 'l' .. '- tnh ,I i'-'l the most llnlqut• ~~1U\g
., .
. ,, . . 'J'J us ,w ,rn£>SS tCl HJ 4~ ' ' •r) h
room g1ves tlw I clJ vww. 1 • ' t l • thf' custonwrs ,, ith thi-. L ~, , t c
1
preposition of the Iwtc l . I n °r·l,.J't•t' tu It'll\ \ llll '
hotel can use tht.• followin~ 11wthods.
- Direct mcthodf; l '"r m ,t tl•lt•phom.• c.111-:
• Sales through a Salt's tl•,,nb, • t.
• Online pay per click or ann~i l ,. .
tiv
\rti!.t'tnl'nt~ tGoogle .uls, facebook
l.."8 a '-h h 1, 1 ,_ 1ll 11 '1 \JN I\ l H'il
l'Y hi llll 1 •
r11h~) ,•ti
• P11nl nw di,, ,,llH 1l ii.1•11w11\'I
• l ,,h,·, nwdl,, ,,d w i ''"" • ,
11 w11 t.., • 1lo l1•l W l•hG 1II' Hoo~ tn)
; ',ystem (WP,Sj
• t,1i,t,,,1 \11-.lt 1h111in n 1,y,;lt>lll (( ,l)C,)
- lnd 1tl \ I nwlhu,I"
• \', •" ,•\ ,,gi•n\ <i • lndt•p<'n<ll•nt tr,, w l cJgrnts
• l \1•1,1 p,1111w1 'l
• Online tr<wl' I t1gc nt<i
• Onhtw lr,, wl pntt,,h, •
• lnd cpcn<lt•nl holC'I _rcprC'<i<•n
- Promotion. Thi-; vnri< tcit1vcs
1bk of marketing mi x deals wi
and tommuni<"atkm mi x for the th effective promotw
hotel. Promotion is the way
to th1..• t.u gt•l m.Hkct. In the ho tels communicat
given case the un iqu e sellin
communicated to the target g p~epos ition can be
market wi th the help of the
• TV commercials fol low ing tools
• Billboards
• Scratch pad with hotel's log
o• Hotel pen s an d pe ncils
• Faccbook page
• Hotel Website
• Brochures
• Twitter channel
• Invitation to travel agencies
• travel websites
• Google + page
- Pricing. In hotel industry Pri
cing is concerned exclusively
Defining the correct pricing wi th room rate.
strategy is one of the mo st
the marketing mix. Potential im po rta nt aspects of
guests can reject the use of
guest rooms, food and bevera ho tel services in case
ge me nu etc. are no t pri ced
customers are strongly influe competitively . Indian
nced by pricing an d packag
hotel rat e codes an d packag es. The main aim of
es is to attract more an d mo
hotels try to offer value to re customers. Luxury
their customers along wi th
Pricing in hotel industry is a lifetime experience.
majority influenced by season
define the hotel rates. s. Following seasons
• Peak season. During this per
iod, dem and for a hotel an d
.,. highest and the hotel is abl its services is
e to charge the highest prices
Places like Agra experience from the guests..
more tourists an d internationa
between October to March an l travellers
d on long weekends. There
peak period for all hotels. It is no defined
varies from one location to the
- Valley season/Off season. Du other.
ring this time period, there is
for hotels. Hotels du rin g this lowest demand
time period offer red uce d rat
try to attract customers by offeri es and packages. The)
ng discounted package rates
- Shoulder season. This per etc.
iod falls between Peak season
This time is considered as the and Off season.
best time to attract new bus
are available and medium to iness as the rooms
high prices can be charged.
marketing activities are at the Promotion, sales and
ir pea k du rin g this season.
Since hotel industry falls in the
category of Services hence apa
price, place and promotion rt from product
(4 Ps), following thre_e Ps
consideration by marketers. are also taken into
- Process. It is concerned wi
th an incorporated buying
is concerned with the actual c,p osu rc. Process
procedure, mechanisms and
wh ich the service is delivered flow of activities by
. It is important for the marke
relations wi th the clients eve ters to make good
n after the purchase process.
series of actions or the fun Process descri~s ~e
damental elements that are
the pro du ct or service to the involved in dehvenng
and personar1sed the
customer. The more seamless
 PRINCIPLES OF MARKE DE
TIN G-2 021 (NO V
wil l be . - q ■ 259
sses are, the hap pie r the cus tom ers
tom · Offering hig h quality products
P~: erv ice s red uce s the cha nce s of cus
the erh cornplain~s. Marketers should
~fiJI their com mit me nts by offe ring wh at ave promised. This will help in
fu . •ning exis ting cus tom ers and attrActing tl1cy new ones
retaJ p 1 a cha rac teri sing fact or in · .
_ people. eop c are . d~n. assi stance con veyance
~.,urr as ass ista nce is not div isib le from th . c m 1v1d 1 · · .
tt1C,,., . as mu ch fo 1. ua ?1ving 1t. In this
,anncr, a lux ury 11otel 1s rem em ber ed to
all luxu r ~~ ambia~ce as the food
:nd tlssistance giv en by its staff. The refo re cham~ offer client
,f"iCC trai nin g for the staff. Sin ce
service~ tend t 0 bry odte]uce d and con.sum ed
f , e pro
sc - th peo ple ' pla y an imp orta nt f t .
at the same tun e,'d ere· ore th • ac or m lps. People are
· hote l d try
the service pro v1 ersH m e serv ice sector. In ·m ·
us peo p1e are the face
· · aim at putt in· th 'gh
of the org aru sati on. . enc e ma rke ters sho uld g e n t ma n on the
r bases.
right job and rew ar d mg the m on a reg ula · an
l evi den ce. . Ser vice s are intanoi ble so physical ev1·d ence 15
_ Physica • • h er
on f a~ il ity wit _ser vic~ s. It is use d to imp rov e cus tom er experience wit h
add
offer different physical env iron men t
that par ticu lar serv ice. Dif fere nt hot els l
5 star hotel will offer better physica
to its cus tom ers. For example, a lux ury l
men t as com par ed to an ave rag e 2 star hotel. Thi s difference in physica
environ
the per cep tion of the customer. Hotel
evidence cau ses an imp orta nt imp act in men t to its
sivel y rs try to offe r clea n, attr acti ve and lux urio us physical env iron
exclu With mar kete
y first tool use d by the mar kete rs in
.DJncit . fOOm Ill cust omers. Phy sica l env iron me nt is the ver
~., important ~r i order to attr act the ir cus tom ers. The physical app roa ch and environment are thet
"8e of hotel servires in la' very first service thin gs service wit nes sed by the customers whenever they visi
J'll')id competitiv~y.i. any hotel or resort. ·
ers towards boosting imm uni ty post
con cer n of cus tom
packages. The mai n aim i Q. 2. The gro win g
ty booster biscuits and
pir es a company to introduce immuni
and more custo- ~ bars. Suggest the appropriate bases of pro duc t pos itio nin g for intr odu cin g this
pan dem ic ins

with alifetime
seasons,
.ar:
Follow ins
product in the market?
of Cov id-1
_
9 pan dem ic, de~ and for imm uni ty bo o~
Ans. Due to the spr ead nt past_ Imn mru ~
y ' f and other hea lth pro duc ts has drasticalcy gone up m the rece
tel and itS ~ has become the fast est gro win g seg men thas in the overall ~ealth and hyg i~e ~~
s stro ngl y shifted, to overall \\ el-rein~.
for aho .ces fro!JI tit~ Due to the pan dem ic, con sum ersben' focu
tiJ ~
and
bee n rea pin g efit s from the con sum ers focus on health
L!"heSt pn Com pan ies hav e
iue-:A iJttet1'3 ~ ~ atV" · h alth
Wellness. alat ed an alre ady grm ~g trThie n? ~or e_. 0
11 ~ ds, 1'het! ~-.~ The glo bal pan dem ic has escboo stin g foo ds and drin ks. s mcr ea:s mo
.
..,d ~
rod . . e pn.x iuce rs
0" to tpe esp ecia lly rmm uru ty tun itie s for food and be,'erag
1oeati ~ 10~ 1lf. consum~r dem and is cre atin ~18 op~
p ucts , ne\.,~
or h for existing cus tom ers and
com pan y laun chin g imm uni ty
~_,or· I Worldwide. Hea lth seg me nt wtd~ eno ug
rnd ustr y, t ~ecessaril,· mt.•dical pro duc ts but
Players to find the ir plac e. As an
,~~·ti th t. 0
e enrichecf or enhanced, wit h the
boosters mu st com ,nu nic ate tha t ese a~e arlthy lifostvk. It is about consumers
~}'
. ~
~ather fun ctio nal foo ds and bev erag esO
tntention of boo stin g imm uni
} ah
ty as par t a ec.1 tt:~t then,seh'es• aga
to pro .
inst ill health.
. . •
takm· h ver y day ht bala nce whe n po_s 1t1o rung mu nur uty

tf I auuo
F g a pro acti ve app r~a c. e
or a new com pan y, find ing
J......_tin
s g pro duc ts is also an
bra nd occ upi es in the min d of the cus
i
the r gf t Positioning refe
.un Por tan t t mer and how it 1s 1sti. nguished m
ac or. .
rs to the place tha t
d'
~ influence consumer per cep tion of a
fro

ff.~ Pro duc ts of com pet itor s. It is an effort_ of competing bra nd

or pro duc ts. The _
' J
Orand or pro duc t rela tive to th e per cep tion
f;
m,l\\\ hk,\ h_,hiti-t .. t,} ,,, "1'' (\ d ,. . ,r,• unt,1\tl' ,md r\\h·nnh1gcous J'>iY•itlon in ti
\,,n,\H\Wt~• n\ilhl \ \,,mp,uw 1.nmdlin~: immomt, \xlU!ilCIS !-houtd posi:io1
h~dt ,,~,\\\.\\tu,· h._,, "\~ h .uhl ~:h mf lh\llth on,t '\ rllnc:5~ of lln. . cur;tm~tcrs pnin
,m ,,rt,m\\' "hik d\,m~: hi,i,h• ..:,; ,Uhl t'imnul.ltins pmduc-t~ best !,;ullcd to th
1
1.'h.\t\~U~ hl\\\'!- lh1.' l•· ,Hhl ,h,,ul\l ,,th.·r ,, r.\l\ft' \,f ht•,1~th\',:rc ,pn~ucts U\.'lt o
,·,,l,,~k ,,t \\\R'nt~ "-' tlw "'--"''d~ \,1 dttt~n:nt kmd, ,)f \.U'-ll n1trs in the mar~
\nt' t-r,\.n\l $h,,ulJ l''$lth'1' tt:- rl\xfo(~ .,~ ,\ 1X',\~1.)t1 tN pt'l..'11-'k l(, rdt:brnk• life
Tht' "t>r,,n\i l.',\l\ P'-)Sih,m ib- f'l\..Jud~ ,,n lht' fdh)\\ in~ b.,-;1:, ,_
- mtun"'S. lt i:; '-='.)n,'\c'mt'\i with U,e c-1r,1t-1bty t1 t the l-rand ~ product, t
1mpt\'Ye tht' ht\.\llh J.nd (Wt>r,,H wdlt-etnf (lf t111:: cu$t,,~1~r::- _ _
Benefits. lt ,~ u~xX".lJrect with the health .i.nd benefits .lh,1t tmmuru
l'l._x_1$re~ c, n t"fu_r t\"I the cu~tomers in the long run. Such products can
1 0
,\....-:sist \.'U~tomers to le,1d ~• healthy ,md decease- -~ life.
Comparison. He.re the pnxiuct is positione d as bein? better _in wme ,, ay
than .1 kn0wn or imrlfod competitor. for c:..umm/c: m the given case the
brand can prow it&lf rette.r as comparN to other brands a,·ailable in the
market like Patanjali, Himalaya . Dabur etc.
Pric~al ity. Here the brand can prove itself as the one offering the best
,alue for mone-r. The brand can take adyantag e by claiming that it can
offer the ~ q{iality products at fair and reasonab le prices.
Usage of applicatio n. This in,·olves positioni ng the product as the best
fur some end use or application. For t'.:nmrole in the given case the brand
can position itself as the best brand in prO\idin g natural health and
wellness.
Ingredien ts. Here the lmrmmity boost~r brand can claim itsclf to be the
best on the basis of the ingredien ts used such as herbal and natural
without any chemical or harmful ingredien ts.
Pro-envi ronment Here the brand can show itself as a good citizen
by stressing upon the fact that its manufact uring process and product
processing are 1001\i natural and emironm ent-friend ly and they have
never been tested on animals.
Product category. The brand can claim that it is the leader in the cate!!Or\'
of immunity boosters and health products. It can attract custom~ by
claiming that its products are best in the segment and thev offer ,·alu·e
for money to the customers . •
Sw adeshi. The impact of 'Made in India' can be verv beneficial for the
brand. It can claim that all its products are ' Made ·in India'. This can
trigger the patriotic sentiments of the customer s and can attract lot of
consumer s who love to buy natural and Indian products.
Q. 3. Big giants in the television industry like Samsung and LG have come
up with OLEO, QLED, SK picture quality technolo gy to enhance the features
of the existing product to sustain the market share as most of these products lie
in the ~turity stage of Product Life Cycle. Discuss the concept and marketing
~ategies ~ t could be used by the marketer during several stages of product
life cycle with the help of suitable diagram.
Ans. For PLC diagram. See Q. 32. [Page 75
For Introduction stage. See Q. 34. [Page 75
For Growth stage. See Q. 35. [Page 76
 PRIN CIPL r~ OF MARKETING-2021 (NO
V-D Eq ■ 261
Q. 36. [P
f,iht rihl st,,~<'-c.Sec age 76
r,,,r •\ · -~t•,.~c'". .::,ee . -
Q.• JI' [P
age
77
. l)c·tlin~ . .·
r,,r .
... The pn,
J ,• f
'"8 oCC l'-ltl ns ti .1 . "m
,.
. c1rc sub1· ..,._ ct to a comp1ex array of
Q . ~. . forrn...,s ' lhP- ·p ri· c·tng Stru Ctur e Cmu
1.. __
n.-attl' ' cnvu -unm ent. tl .it1t1 ,•nrt1 pe!lt hve. iges
('Ofl'r- •
its lire cydf '!, Whi le setti ng pric e for the
n,-rr tirnt a.: a pr(l thtd mm'ec. thro u~h ity or pric e
"' nroJ ud .1 c.:mar kete r mus t dcn dc whP thcr tn dete rmin e qual
' bl ..
ftf I ' • t .1 c pnc1 ng strat~gies .iv•H,bJe to ,1 com pany
0.,jJr raho n. -,uggt>s po1o- able examplf!s.
:hik laun chin g a ttew rrod uct by givi ng suit
ing stratPgiCS whilP Jaunching
· An~. A C('m r,iny can tollow tht.' following pric
"nt·,,· product ..
m-the--cream prki n,g'' . This
1. skim min g Pric ing. It ~~ also _termed as "Ski
uct is intro duce d in the mar ket
pricing ts adop red whe ~ an mno vah ve n~w prod
ket. The prospective cu5'tornexs
illd the com pany lS trym g to targ et the ruche mar
looking for better products. In
are less sensitive tow ards pric e and are always
grad uall y it is redu ced. By this
thl.5 method the pric e is set high initially and then
by hitting their psychology. By
p0licy the com pany cate rs to all mar ket segments
omers who are bran d conscious
scltifig a high price initially, it targets those cust
n by cutting dow n the prices in
and relate high pric es with high quality. The
terms of disc ount ing, the com pany can
cater to middle-income segm ent who
Lastly, i.e., in the third stage, by
are price-conscious and image-conscious also.
r income levels who look for
milking the bran d the com pan y can cater to lowe
e that high profits in early life
bargain hun ting . It is adva ntag eous in the sens
strategy is adop ted by App le,
<yd e phase redu ces the risk of obsolescence. This
Cantabil, Priknit, etc. at mil.king
Reebok, Adi das (at the mid dle segment) and by
stage of bran ding .
the time whe n a prod uct whi ch
2. Penetration pric ing. This strat egy is used at
is getting intro duc ed in the mar ket alre
ady has lots of competition v,rithin the
uct. Penetration pric ing mea ns
market The new prod uct is a subs titut e prod
or ~ such time ~e prod uct 15
adopting a low er pric e in the initial peri od
itions und er whi ch a prod uct
accepted by the cust ome rs. Following are the cond
. .. .
should have pene trati on pricing: very sens itive to pnce .
(r) Whe n sales volu me of the prod uct 1s
(ii) Whe n a larg e volu me of sales is to be effect~d.
ors.
(iir) Whe n the prod uct faces thre at from competit
_
(iv) Whe n stability of pric e is required.
lo~g run protits ~~d thus
Low start ing pric e sacrifices shor t-run profits for
ces t~e nsk of prod uct ta.tlure as
discourages pote ntia l com peti tors . It also redu mtt.'$ ot sea.le earl y
low pnce · s w1·11 Iea d to vo l ume pu· rchase thus reaching ~ono
examplt• . .
in the prod uct's life-cycle. Reliance Jio is a gooding 1s set_ high_but the p~u ct 1s
3. High.Low Pricin In this strategy thes pric ' (h~t pn~:l) sign als to
&Aid . g: s an d pn)motion · · Tht• hi~h prtct
· h heav y d1sc · th ' This ·
ount ctlu£> l>t•ing dt'ltn•rt'U m 1s pr\X uct. ts
the w1t
_, . .
.~ 1s mun· cnse ~• t·t•·, n t ••nsu rin\.~c that enou gh inte rest
market that thc•r€ th , toot tra tl: ,uf rt-qm l • ·
d~ t ·
•asc• • • • ~ • • •
11 1 itt• .•ntly in the Xiaomi prod ucts
• v•l!IC o ensu r'i an mcr~
18 Sfflerated in the aud1cnct•. I h1~ is St'<'ll qu
days.
8ale. . .. . . . . he most common pricing model th~ one of the
ing: This ts dt"f' •nt v iriations to exec ute. In
4. Free nuum Pric lf ha any 1 ,ere • . on Iy, after whi ch
Pr - : .
•...._uuum m 1tse
.
s m f. f for a certain duration
Variants, the prod uct is avai labl e or rt.'t?
262 • Shiv Da'I nn 1JI UNIVT HSI rY 1 ,f HII ,,

tht' custnnw1 h,18 lo put, h,iq• thP Ii, "fl~ Jo , ,.,ifinlf" tisin~. /\~other v~ri,mt j
b~,~cd ()t) \l'l,lgc Ih1r•~h,1ld, t lw c 11 «il111n,•t , i•n use t Ji,, pwd "' t llfltJI " ccr t;im usag
thtc!-hold is hit {m1mhr1· 11f lt,1t1 u,1, tio11q, ,1111nhttr o( ,,c.,•r~ etc.) ,,ftcr which th
cu ... tonw, hi tl'(}lllt ,•d In bu y • .
.s. Dr<oy &..\mp; l',ychologic.1J l'rking: ·1~w prlr<.!9 ~or Et1 m1la: pwdut~ is £,e
dtftcn:nlly to dnw mmc• 'ltlk<i for the c.h,•apcr ,ilt"rn,1t1 v••: fJ/\J\." romparues u~
tlu~ lot dt 1vmg .,all's to a sprdfi r pl,rn, Retail !,ton.'" do this , t tirnc9 tcx,, to driv
1

motX' ~ales to a new product .

6. Predatory Pricing (can be iJlegal): In predatory pncmg, the prciduct ,
givcnaway for free. The company may be making Joss on {•c1rh sale but this is
potentially done to drive the competition out of the mar~et completely. One
example of this is Uber when they started, they were los1~g money ~n each
transaction . Another legacy example is of Internet Explorer. 'J:tls was provtd~d for
free with the OS by Microsoft. In those days, Netscape Navigator the promment
web browser in the market was a paid product.
7. Dynamic Pricing: This is something we have all experienced in case of L'ber.
The price is changed based on the demand and/ or supply; known as surge pricing
in case of Uber. Hotel room booking, flights booking are other examples where
dynamic pricing is widely used.
In the Product Development Lifecycle, defining and deciding the Pricing
strategy at launch is one of the crucial decisions that paves the way for high
product adoption. .
Q. 5. A company is planning to launch air purifiers to curb the problem of
air pollution in Delhi-NCR. H you are appointed as a promotion manager
of this leading company, what promotion-mix would you suggest attaining
companies' objectives?
Ans. Promotion-mix is an important element of marketing mix. It is concerned
with . the activities that are undertaken to communicate with customers and
distribution channels in order to -enhance the sales of the firm. The promotion
element of marketing mix aims at informing and persuading the customer to buy
the product and informing him regarding the merits of the product. Promotion
-mix is a specific combination of promotional methods used for the purpose of
selling a product or a family of products. A leading company planning to launch air
purifiers should carefully decide its promotion-mix. Since it is dealing in electrical
appliances and air purifies, it should have a consumer-friendly promotional
policy that should be reflected in Hs slogan. For example 'Breathe clean, Long life.
The company should be determined to treat every customer with special care
and so in order to create and maintain its customer base, it should possess an
improved, innovative and visionary promotional strategy. The company should
rely heavily on the traditional means of promotional campaigns like television
media and print advertisement for bringing awareness among the masses about
its products. In order to attract youngsters, the company can use social media
platforms and online tools like websites, Facebook, Twitter, Instagram etc. The
brand should aim at becoming a household name. The brand should promise its
customers qualitative goods along with sense and sensibility. It should adopt_ the
process of eco-friendly design as it is selling air purifiers to cut down pollution.
It should take part in various environment protection programmes, events and
seminars to create awareness about the pollution and its harmful consequences.
 ) ■ 263
PRIN CH'L l5 ()t MAR KHT fNC- 2021 (NOV -DEC

.,, '-llll (;,ce n Pwd ud ~,Jt-.q.' (lf othe · r sl rniln• r· prtigr •1 mm '!S t o spre a d
rtif't"" t' r
s
~t!!l:~- . tt~ thr tnr~t.?l cu. lottl e~ S u:! in~tn
tfl llt1tton and dcm onst r.,tio n are
t
,,c p11- ...,.(e ,,f sdhn g ntr .punh crq.
henc e ptYJ"!.;onal sellin . 1•mpo rtan
. g i~"' an
,., ~t m '-"' 1uctc:. for this the brnnd req11•1r~· <ftJ,1• t·,: ·d
_, !i= J hrnnll tu rnm,l.•h, ,ti; \ f'ttlt ' • • ~ tnc:
' u punf1crs hdp in th,, elimination (If dust
••~~,.,_'!£' \ l1.'
t'" '\w" 1~a 1'it' &'lll~c:m,~n n :ind mold
itJ ~. . ._ Juc;t u,,u~, t,.,ctc, 1,1c:, ~,noJ11 .:,~ parlicf,•q, pet dander polJc m orde r to
m,~s
~1;;~ t,endH<: sh:.. uld be c~11vcy d hy the brt1nd to it~ custo
~we the utility of it~ prod ud. ~ he br,m d c,m use bothca.n use p<.,rson.:11 selling
ATL (Above the lme)
~ BTL (He.h..w the lmc) prom otion strat egy.
In BTL it
the channel across the
ll cn~"llo}ing good n~m bcr of experts t_o c:cll and mc1nt1ge
ti\ tr\', T\' \.,1mmcrc1ab can com mun icate valu
e to its custo mers , Sma rt print
~~te g}' can :act as a bonu s for the br~ d.
With the com bina tion of ATL and
Pres ence of e-co mme rce
:SIL the bran_d can crea te a _strong pro.m otion al str~tegy.
!!art' can asst.St the bran d m prom otin g and
selling its prod ucts . Through the
~ of ,ideo mark eting , the bran d can try to
show to pote ntial new cust ome rs,
ier, exactly how they wou ld
,..,..., h.l,·en't yet mad e the plun ge to buy an air purif
24 % of cons ume rs who ose
ft,enefit by using one. It shou ld be note d that upto
chan nels befo re they mak e
~lCial media use it to look up for the prod ucts and
ia more than thirt een and a
an electronic purchase. For user s who use social med
before buyi ng a cons ume r
half hours a week, 65'\i of them chec k social chan nels
and posi bve social med ia
~ca l good. Ther efore a good onlin e pres ence
of the bran d.
feedback can prov e to be help ful for the prom otion
Q. 6. In the rural area s, it is som etim es usef ul
to pack age quan titie s sma ller
tun those sold in urba n mar kets . You are emp
loye d as a marketing man.tger
to offe r toma.to ketc hup,
al a le~ding FMC G com pany , whic h is plan ning
rs. Sugg est the appr opri ate
lbu:tpoo, and oil in sma ll sach ets for rura l cons ume
.
nnl marketing mix strat egy for the succ ess of the firm
uct, price, plac e and
Am. Marketing mix for good s cons ists of 4Ps, viz, prod
ly on the basis of mark ets
promotion. These mixe s need to be mod ified acco rding
~t the firm. is cate ring to. As far as rura l mark
ets are conc erne d, who le mark eting
is totally diffe rent from
aux needs to be chan ged as the scen ario of rura l mark ets
~ urban market. In the give n case, a lead ing FMC
G is plan ning to off~r to~ to
cons ume rs. The tollo wmg
ketchup, shampoo and oil in smal l sach ets for rura l
case. . .
lllari:eting mix strat egy will be suita ble in such a ta tnc\mw and lt'SS
low per capt
- Product. Since the rura l mark et has
purc hasin g pow er, henc e a vast majo rity of rural
peoplt' requin"' lt,\\ et.)S.t,
_h)r th'-' m.u~~tt.'rs to
sturd y and utili ty prod ucts . Hen ce it is impo rt,mt
1renwn_t~ 1,.H tht.> rura l
redesign their prod ucts as per tht· need s an~ requ
cons ume rs. In the give n c,t~t• strai ght t•xh.•n,trnl
,tr.,kgy .._ \lsed bv the
t•,,~ sllt.--s ~olu~,e.
company jn orde r to attra ct nm1l c0n·•:uuwr~ and il~cr
nre mtrodu\t>d wtt~
Und tt the strai ght cxtt.~m,ion str11tvgy :illlnt.' pw_d u\ t~
rnirumum modifk-ntions . rm 1,,a1111 ,1,. in tlu·
g,v<•n. ~.,~• th~ rom l'tnY 1s
t 1 , •t'"l·ui1 sh m,1x> <.' and, ,oil, • ~in sm.1U ~1ch ets for
Plann ,mg t o off.t:r turun o .. l l • ~ • ,,t•• th,s ~
stmt t ij) 1~ that t~ tom ~y
" •

rural cons ume n,. The m1tin hcnl' ftt g.

doeen't "'--·d to mve . ·tin new rt.~l•arch cu1d dl'Vt .'lllp!nent or man ufactiturin ·
• ...~ s >d •t m ·m llJer
> • quan ties at
~reo ver, the cons umc ni gt•t tlw S4,nw pr, u"
fair and reasonable price s. k
In d t to the nt.-eds of rura l mar et, mark eters shou ld
- D.J __ to ca er
• uce. or er
264 ■ Shiv Das DELI U UNlVlmSJTY SERIHS
. ducli; arc with in the reach of rural
aim for low co~I products. Such pro . . rnc v-rnup and have limited
consumers, as l I1t' Y bc•I Ong to low mco n"' ll o
sr ... 1mchc ls is a good idea as
· .
pure husmg powe,r., ()ffc,rJ ng. producli, inrices can attra ct large number of
it can be sold at u lower price . Lower P
' h , bu ing h 1 ·d db th •
decis ions are uge Y gui e Y e pnce .
rural consumers as t cu Y al'
Rural consumers are not usua lly qu ity and statu s conc ision s. They are
• • Off · s'mal ler quan tities auto m. attca • ll
more pnce-centnc. enng y reduc es the
· f h d t Henc e low price d
1 t h
pnce o t e pro uc s. prod ucts a ways attra c t e rural
buyers.
Place (Distribution). Distr ibuti on chan nel man agem t · th b'
en ts e iggest
challenge in the rural markets, beca~ ~e. the cons
ume rs are scattered
and problems like comm unica tion fac1hties, l~s$
off take and scattered
distri butio n are prese nt in the mark et. At times
, even thou g~ rural
people are awar e of substitutes, still they are forc~
d. to buy whichever
bran d is available with the local shop keep er. This
1s the reason why
marketers are now focusing on direc t distr ibuti on
chan nels like haats
and agent distribution syste m villag~s with local
villa gers work ing as
their agents. The local agen ts not only prom ?te
the prod uct but al~o
take orders and keeps the inventory. In the given
case the prod ucts m
question are less in price and small in quan tity and
pack aging . Hence
direct distribution along with agen t distr ibuti on syste
m is most suitable.
Easily accessable areas can be reach ed with the help
of direc t distribution
channel. On the other hand for not easily acces
sibfe areas , marketers
can opt for agent distri butio n system. Avoid ing
lot of midd leme n in
the distribution chain helps the mark eters in keep
ing the price of the
prod ucts as low as possible. It is impo rtant for the
mark eters to carefully
choose the distribution channels so that they can ensu
re easy accessibility
of prod ucts for rural consumers. Generally local rural
prod ucers follow
direct distribution channels. On the other hand natio
nal level producers
opt for indirect channels or go for a comb inati on
of direc t distribution
along with agent distr ibuti on system.
Promotion. For prom otion of prod ucts in rural areas, a
sepa rate strategy
is required. Television ads, inter net adve rtisin g, socia
l medi a promotion
etc. are not very effective in rural areas . Still large
num ber of rural
peop le use raq.io as a tool of enter tainm ent. Radi
o adve rtisem ents can
be an effective tool of prom otion ~ these areas. Publ
icity throu gh special
shows, nukkad nataks, films with the help of mobi
le vans etc. are good
meth ods of promotion. Gene ratin g word of mou
th publi city through
opin ion leaders, colourful wall posters, adve rtisem
ents in local language
news -pape rs can also be ·very effective. Village
fairs and festivals are
good venu es for prom oting prod ucts in the rural mark
ets. Marketers can
also cond uct pupp et shows, danc e dram as and
prep are mythological'
song s to attrac t rural consumers. It shou ld be kept
in mind that opinion
leade rs pay a key role in popu larisi ng prod ucts and
influencing in rural
markets. Educ ation amon g rural yout h is also incre
asing . Their exposure
to outsi de worl d is gradu ally increasing. For them
television can be used
as a tool of prom otion .