SHORT NOTES ASSIGNMENT OF MARKETING MANAGEMENT

SUBMITTED TO-; Mr. LALIT SINGLA LECTURAR M.M RIMT-IMCT

SUBMITTED BY-; RAJAT VERMA MBA-2/A ROLL NO-95072238768 RIMT-IMCT

Q-1 What is Market and Marketing?
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Ans-1 market - the world of commercial activity where goods and services are bought and sold selling: the exchange of goods for an agreed sum of money

The American Marketing Association, the official organization for academic and professional marketers, defines marketing as: Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives Another definition goes as process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others . Simply, Marketing is the delivery of customer satisfaction at a profit. Marketing consists of the strategies and tactics used to identify, create and maintain satisfying relationships with customers that result in value for both the customer and the marketer.

Q-2 What is Role of Marketing?
Ans-2 At the organizational level, marketing is a vital business function that is necessary in nearly all industries whether the organization operates as a for-profit or as a not-for-profit. For the for-profit organization, marketing is responsible for most tasks that bring revenue and, hopefully, profits to an organization. For the not-for-profit organization, marketing is responsible for attracting customers needed to support the not-for-profit‟s mission, such as raising donations or supporting a cause. For both types of organizations, it is unlikely they can survive without a strong marketing effort. Marketing is also the organizational business area that interacts most frequently with the public and, consequently, what the public knows about an organization is determined by their interactions with marketers. For example, customers may believe a company is dynamic and creative based on its advertising message. At a broader level marketing offers significant benefits to society. These benefits include:
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Developing products that satisfy needs, including products that enhance society‟s quality of life Creating a competitive environment that helps lower product prices Developing product distribution systems that offer access to products to a large number of customers and many geographic regions Building demand for products that require organizations to expand their labor force Offering techniques that have the ability to convey messages that change societal behavior in a positive way (e.g., anti-smoking advertising)

Q-3 What is Marketing Management? Ans-3 Marketing is a key function of management. It brings success to business
organisation. A business organisation performs two key functions producing goods and services and making them available to potential customers for use. Marketing Management – “ Art & science of choosing target markets & building profitable relationships with them.’’ Involves getting, keeping & growing customers through creating , delivering and communicating superior customer value.

Q-4 Explain Process of Marketing? Ans-4 The marketing process as follows:Chapter 1 Introduction to Marketing

The Marketing Process

Himalaya Publishing House

Marketing Management Dr. K. Karunakaran

1. Strategy formulation – the development of the broadest marketing/business strategies with the longest term impact . 2. Marketing planning – the development of longer-term plans which have generally stronger impact than the short-term programs. 3. Marketing programming, allocating and budgeting – the development of shortterm programs which generally focus on integrated approaches for a given product and on the allocation of scarce resources such as sales effort or product development time across various products and functions. 4. Marketing implementation – the actual task of getting the marketing job done. 5. Monitoring and auditing – the review and analysis of programs, plans and strategies to assess their success and to determine what changes must be made. 6. Analysis and research – the deliberate and careful acquisition and examination of qualitative and quantitative data to improve decision making.

Q-5 Difference between Needs , Wants, Demands?
Ans-5 Needs Wants And Demands:
Marketing thinking starts with the fact of human Needs and wants. We all have some needs residing in ourselves. These needs exist. Remember that needs can never be created.

Needs:
Needs are the basic human requirements. People need food, air, water, clothing & shelter to survive. People also have needs for recreation, education and entertainment. Eg: Hunger food. According to Abraham Maslow‟s need hierarchy, all the human needs can be categorized as shown in the diagram Maslow‟s Hierarchy Of Needs

Wants:
The needs become wants they are directed to specific objects that might satisfy the needs. Eg: Mercedes “Needs Pre-exists” (can‟t be created

Demands:
Demands are wants for specific products that are bagged by an ability and willingness to buy them.

Que-6 What is market myopia concept? Ans-6 Marketing myopia -Sellers who concentrate their thinking on the physical
product instead of the customers need are said to suffer from „marketing myopia The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products.

Que-7 Difference between Marketing and Selling?

Selling
1. Emphasis is on the product 2. Company Manufactures the product first 3. Management is sales volume oriented 4. Planning is short-run-oriented in terms of today‟s products and markets 5. Stresses needs of seller 6. Views business as a good producing process 7. Emphasis on staying with existing technology and reducing costs 8. Different departments work as in a highly separate water tight compartments 9. Cost determines Price 10. Selling views customer as a last link in business

Marketing
1. Emphasis on consumer needs wants 2. Company first determines customers needs and wants and then decides out how to deliver a product to satisfy these wants 3. Management is profit oriented 4. Planning is long-run-oriented in today‟s products and terms of new products, tomorrow‟s markets and future growth 5. Stresses needs and wants of buyers 6. Views business as consumer producing process satisfying process 7. Emphasis on innovation on every existing technology and reducing every sphere, on providing better costs value to the customer by adopting a superior technology 8. All departments of the business integrated manner, the sole purpose being generation of consumer satisfaction 9. Consumer determine price, price determines cost 10. Marketing views the customer last link in business as the very purpose of the business

dishwashers.Que-8 What are the different basis of classification of marketing? Ans-8 Different Types of Market Before delving too deep into the study of marketing. hairdressing. 1) Consumer Markets Consumer markets are the markets for products and services bought by Individuals for their own or family use. except that they wear out more quickly and therefore have a shorter replacement cycle Examples include clothes. it is worth pausing to consider the different types of market that exist. Good examples include ready meals. security. accounting & legal services .These are goods that are not aimed directly at consumers. cookers. Goods bought in consumer markets can be categorised in several ways a) Fast-moving consumer goods (“FMCG’s”) Fast-moving consumer goods are those that sell in high volumes. coal. The most common distinction is between consumer and industrial markets.g. timber b)Selling services to businesses Examples include waste disposal. Industrial markets include Selling finished goods Examples include office furniture. DVD players. games consoles. fridge-freezers. personal computers) Soft goods: Soft goods are similar to consumer durables. shoes Services (e. baked beans.g. childcare) 2) Industrial Markets Industrial markets involve the sale of goods between businesses . microwaves) Brown goods (e. newspapers etc b) Consumer durables: These have low volume but high unit value. and have fast consumer repurchase. further divided into: White goods (e. or endconsumer. dentists.g. Consumer durables are often. computer systems a)Selling raw materials or components Examples include steel. or both. Markets can be analysed via the product itself. with low unit value. gas.

viz. they want to choose products that provide the most satisfaction for their money. For example. A need is a state of felt deprivation. marketers try to provide more choices.. As people are exposed to more objects that arouse their interest and desire. Humans have many needs. When backed by buying power (ability). Therefore. a want becomes a demand. . physical needs.Que-9 What are core concepts of Marketing? Ans-9 Core Marketing concepts Needs. spiritual needs and so on. These objects (which represent the different choices for a person to fulfil his/her need) comprise the potential want-list. Wants and Demands The most basic concept underlying marketing is that of human needs. Wants are thus shaped by both the internal and external factors. social needs. People have almost unlimited wants but limited resources. Wants are described in terms of objects that will satisfy needs. more want-satisfying products. a person may consider a number of options – drink water or a soft drink or a fruit juice. It is a part of the human makeup. To quench this thirst. thirst is a need. Wants are the form taken by needs as they are shaped by the one‟s culture and personality. that is.

the ideal product is the one which gives all the benefits at zero cost. Thought it is only one of the many ways people can obtain a desired object. It consists of a trade of values between two parties. Transaction marketing is part of the larger idea of relationship marketing. If they agree. Of course. several conditions must be satisfied. and each must have something of value to the other. A monetary transaction involves trading goods and services in return for money whereas a barter transaction involves trading goods and services for other goods and services. People satisfy their needs and wants with products. Exchange. After all. He/She might rank the products from the most need-satisfying to the least need-satisfying. profitable transactions will simply follow. Each party also must want to deal with the other party and each must be free to accept or reject the other‟s offer. A transaction is marketing‟s unit of measurement. the concept of product is not limited to physical objects. computers. other terms such as market offering. Finally. groceries. Still. Transactions and Relationships Marketing occurs when people decide to satisfy needs and wants through exchange. If at times the term „product‟ does not seem to be appropriate. Exchange is the act of obtaining a desired object from someone by offering something in return. The guiding concept is customer value. places. services and a variety of other vehicles that can satisfy customers‟ needs and wants. how do they choose from among these many products? They make their buying choices based on their perceptions of a product‟s value. Marketing is shifting from trying to maximize the profit on each individual transaction to maximizing mutually beneficial relationships with consumers and other parties. satisfier are used. which places to visit for a holiday. This is based on the assumption that if good relationships are built. Marketers often use the Expressions goods and services to distinguish between physical products and intangible ones. Thus the term „product‟ covers physical goods. These goods and services can represent cars. exchange creates value just as production creates value. In this sense. persons and even ideas. which ideas to adopt for their problems and so on. Of course. It gives customers more consumption possibilities.Products A product is anything that can be offered to a market to satisfy a need or want. we must conclude that the act of exchange has left both of them better off or at least not worse off. at least two parties must participate. Though the word suggests a physical Object . it allows a society to produce much more than it would with any alternative system.] Value and Satisfaction When the customers have so many choices to choose from to satisfy a particular need. . each party must be able to communicate and deliver. each was free to reject or accept the offer. A customer will estimate the capacity of each product to satisfy his need. These conditions simply make exchange possible. Customers decide which entertainers to watch on television. but no such product exists. For an exchange to take place. the customer will value each existing product according to how close it comes to his/her ideal product and end up choosing the product that gives the most benefit for the rupee – the greatest value. Whether the exchange actually takes place depends on the parties‟ coming to an agreement.

as seen in the growth of huge companies. imagine a primitive economy consisting of only four people – a farmer. b) The consumer is king! Find a need and fill it. As economies grow.Markets The concept of transactions leads to the concept of a market. Merchants and central marketplaces greatly reduce the total number of transactions needs to accomplish a given volume of exchange. performance and innovative features b)A good product will sell itself. . In the third case. each person sees the other three as potential buyers who make up a market. A market is the set of actual and potential buyers of a product. exchange becomes even more centralized. a potter and a hunter. a new person called a merchant appears and locates in a central area called a marketplace. In the second case. Marketing – a) Focuses on needs/ wants of target markets and delivering satisfaction better than competitors. In the first case. centralized exchange. Relationship marketing – a) Focuses on needs/ wants of target markets and delivering superior value b)Long-term relationships with customers and other partners lead to success. decentralized exchange. It may exist in a physical environment as a marketplace or in a virtual environment (on the internet platform) as a market space. To understand the nature of a market. Que-10 Suggest Alternative channels of Marketing? Ans-10 There are 5 Alternative concepts of marketing are-. Each trader brings goods to the merchant and trades for other needed goods. Sales – a) Consumers will buy products only if the company promotes/ sells these products b)Creative advertising and selling will overcome consumers‟ resistance and convince them to buy. Production – a) Consumers favour products that are available and highly affordable b) Improve production and distribution c) Availability and affordability is what the customer wants. self-sufficiency. they gather the needed goods for themselves. Large supermarkets now serve millions of people who formerly shopped in smaller outlets. a fisherman. Product –a) Consumers favour products that offer the most quality.

Focuses on needs/wants of target markets & delivering value better than competitors Societal Marketing. . These phases exist and are applicable to all products or services from a certain make of automobile to a multimillion-dollar lithography tool to a one-cent capacitor. its position in the market compared to competitors. abbreviated PLC. or innovative features Selling. performance. can help a company to understand and realize when it is time to introduce and withdraw a product from a market.So in very short-: Production Concept -Consumers prefer products that are widely available and inexpensive Product Concept. The understanding of a product’s life cycle. The product’s life cycle . the life cycle refers to the period from the product’s first launch into the market until its final withdrawal and it is split up in phases.Consumers favour products that offer the most quality.Concept Consumers will buy products only if the company aggressively promotes or sells these products Marketing Concept.’ A product's life cycle.Focuses on needs/ wants of target Concept markets & delivering value better than competitors that preserves the consumer’s and society’s well-being Que-11 Define PLC-product life Cycle? Ans-11 Product Life Cycle: All products possess ‘life cycles. and the product’s success or failure.period usually consists of five major steps : Product Development. Introduction Stage. Maturity Stage and finally Decline Stage. Growth Stage. These phases can be split up into smaller ones depending on the product and must be considered when a new product is to be introduced into a market since they dictate the product’s sales performance.

. This involves translating various pieces of information and incorporating them into a new product. before it is exposed to target customers via test markets.Stages of Product Life Cycle: (1)Product Development: Product development phase begins when a company finds and develops a new product idea. Those products that survive the test market are then introduced into a real marketplace and the introduction phase of the product begins. Similar advances are occurring in software development. Personal computers are undergoing rapid advances in which significant new functions (benefits) are constantly added. A product is usually undergoing several changes involving a lot of money and time during development.

market research. Having the product in every counter is very important and is regarded as an impossible challenge. Large expenditure on promotion and advertising is common. with input gathered from customers. Idea generation is the first step. Some companies avoid this stress by Hiring external contractors or outsourcing the entire distribution arrangement. marketing plans are undertaken and a business plan is developed. users. complexity.. Once completed. and the plans are revised as needed. organizational stress and high customer expectations have combined to support a process for reducing product development time. .(2)Introduction Stage: The introduction phase of a product includes the product launch with its requirements to getting it launch in such a way so that it will have maximum impact at the moment of sale. Here prototypes are developed. and advertising and promotion programs are finalized and initiated. A company must be prepared to spend a lot of money and get only a small proportion of that back. the new product moves into final development. other markets and employees Each new idea goes through an idea evaluation or screening process. If the design looks good and the processes make sense. the idea moves into the early development stage. The tooling begins. If everything is on track. the prototypes and plans are reviewed again against expected objectives . Rapid change. Financial estimates are reviewed against the objectives. Test markets are conducted. increasing competition. A good example of such a launch is the launch of “Windows XP” by Microsoft Corporation. Frequently prototypes are shown or tested by prospective customers. competitors. This has the benefit of testing an important marketing tool such as outsourcing The introduction stage has more recently been termed the product development process. In this phase distribution arrangements are introduced. outside inventors.

Cornetto Junior. For example-Wall‟s Ice Cream growth was an outstanding 40%. Usually this is the stage that requires the heaviest investment in marketing to educate. and profits are improving. Magnum premium range and Donut. Outdoor. While a marketing plan was developed in the introduction stage. Distribution is increasing as well. In Home premium range. Prices are steady to declining. build share and support sales activity. If there were no competitors in the introduction stage. 25 new products were launched.(3)Growth Stage: The growth stage is where the rising tide of consumer interest lifts the boats of all participants. Magnum Caramel & Nuts Bar. Print and Visibility activation) and constant attention to consumer affordability. Super Twin. Moo. adjustments to the marketing mix are usually required in the growth stage. they are now a factor. 360 Degree Communication (TV Commercials. some examples are: Kulfi. Cornetto Super relaunch. Costs are declining with increasing volumes. Consequently. additional product features and support may be needed. achieved through an exciting stream of innovations. Competitors are attracted to enter the market. During the year. . aggressive market penetration. as every participant in the industry is focused on market share and becoming the low-cost producer.

The market is well established.(4)Maturity Stage: The market maturity stage occurs when the market has become saturated. Market share becomes the main focus in the maturity stage. and the competitive pressures are building. Lipton continued to be the star brand. regardless of where you are on the product life cycle. More internal pressure is placed on reducing costs. Pricing may be lower because of increased competition. Distribution is maxed. Efforts are focused on differentiation of the product. If your profits are steady or increasing. With strong on-ground activation and successful consumer promotions the brand had double digit growth. then it is time to take action. . Margins begin to shrink as marginal competitors are forced out of the market. you are well positioned. and promotions come into play as a way to encourage preference over competing products. although some have started falling by the wayside.. carrying the premium image that it has established over many years. There are numerous players. Sales growth rate tends to decrease. if profits are flat or decreasing. On the other hand. Lipton tea bags are the market leader.

spare part availability. Actual purchasing is only one stage of the process. service competitions reaction in filling the market gap are some issues that increase the complexity of the decision process to withdraw a product from the market. Not all decision processes lead to a purchase. determined by the degree of complexity. Sometimes it is difficult for a company to conceptualize the decline signals of a product. Que-12 What are different stages of Buying Process? Ans-12 Stages of the Consumer Buying Process Six Stages to the Consumer Buying Decision Process (For complex decisions).(5)Decline Stage: The decision for withdrawing a product seems to be a complex task and there a lot of issues to be resolved before with decide to move it out of the market. Distribution is narrowed. Usually a product decline is accompanied with a decline of market sales The prices must be kept competitive and promotion should be pulled back at a level that will make the product presence visible and at the same time retain the “loyal” that will make the product presence visible and at the same time retain the “loyal” customer. Dilemmas such as maintenance. All consumer decisions do not always include all 6 stages. Often companies retain a high price policy for the declining products that increase the profit margin and gradually discourage the “few” loyal remaining customers from buying it. .

Hungry. Information search-o Internal search. KFC etc 3. Purchase decision--Choose buying alternative. Hunger--Food. time lapse between 4 & 5. indian food . A successful information search leaves a buyer with possible alternatives. have you made the right decision. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. public sources etc. o External search if you need more information. store. the evoked set. This can be reduced by warranties.The 6 stages are: 1. may think that really you wanted a chinese meal instead . comparison shopping. 5. product availability. Problem Recognition(awareness of need)--difference between the desired state and the actual condition. after sales communication etc. includes product. Evaluation of Alternatives--need to establish criteria for evaluation. Friends and relatives (word of mouth). features the buyer wants or does not want. memory. indian gets highest rank etc. evoked set is chinese food. If not satisfied with your choice then return to the search phase. Purchase--May differ from decision. Information from different sources may be treated differently. stimulates your recognition that you need a new pair of shoes. 2. Deficit in assortment of products. want to go out and eat. method of purchase etc. see a commercial for a new pair of shoes. Rank/weight alternatives or resume search. Marketer dominated sources. 6. Marketers try to influence by "framing" alternatives. Hunger stimulates your need to eat. 4. Cognitive Dissonance. After eating an indian meal. May decide that you want to eat something spicy. package. burger king .

A marketing information system (MIS) is a set of procedures and methods designed to generate. continuous basis.Que-13 Concept and Components of Marketing Information System (MIS) ? Ans-13 Marketing Information System: We all know that no marketing activity can be carried out in isolation. controllable or uncontrollable which are working on it. The effectiveness of marketing decision is proved if it has a strong information system offering the firm a competitive advantage. disseminate. Thus to know which forces are acting on it and its impact the marketer needs to gathering the data through its own resources which in terms of marketing we can say he is trying to gather the market information. This collection of information is a continuous process that gathers data from a variety of sources synthesizes it and sends it to those responsible for meeting the market places needs. analyze. know when we say it doesn‟t work in isolation that means there are various forces could be external or internal. . and store anticipated marketing decision information on a regular.

Components of MIS-: .

Que-14 How do Marketers assist the customer during research and evaluation stage of their Purchase Decision Process? Ans-14 Information about the market Analysis of the market potential for existing products (e. changing sales trends) Forecasting future demand for existing products Asessing the potential for new products Study of market trends Analysis of competitor behaviour and performance Analysis of market shares Information about Products Likely customer acceptance (or rejection) of new products Comparison of existing products in the market (e.g. costs.g. others in company and external partners. margins and profits Customer perceptions of “just or fair” pricing Competitor pricing strategies Information about Promotion in the Market Effectiveness of advertising Effectiveness of sales force (personal selling) Extent and effectiveness of sales promotional activities Competitor promotional strategies Que-15 What is Marketing Environment? Ans-15 Marketers need to be good at building relationships with customers. “A company’s marketing environment consist of the actors and forces outside marketing that effect marketing management’s ability to build and maintain successful relationships with target customers. they must understand the major environmental forces that surround all of these relationships. distribution) Forecasting new uses for existing products Technologies that may threaten existing products New product development Information about Pricing in the Market Estimates and testing of price elasticity Analysis of revenues. features. price. growth. market size.” . To do effectively.

which consists of men. The function of the finance department is to find out the sources and uses of funds and in order to carry out the plans marketing requires funds so it has to co-ordinate the activities with the finance department. (1)The Company: constitutes the internal environment of the organisation. If marketing has to function well it has to coordinate the activities with all the other members / departments involved in the organization as they have a great impact on its functioning. purchasing. It influences the organization directly. if. manufacturing. materials and machinery. money. vision and values. It is more local relationship and the firm may exercise a degree of influence. It describes the relationship between the firms and the driving forces that control their relationship. finance. The major departments which make up the company consists of.Que-16 What is Micro and Macro Environment? Ans-16 Micro Environment – Factors that an organization has direct control over Macro Environment – Factors on which organization has no control at all . marketing. research & development. accounting and others. Micro Environment These are the internal forces close to the company and have a direct impact on the organization strategy. Research & development is involved in developing the new products giving life to new ideas so the marketing department. finds any changes in the tastes of the consumers and . Top management formulates the organisations missions. The marketing plans have to be in co-ordination with those plans and need to be approved by the top management in order to be implemented.

physical distributors. They have their own bargaining power in the industry. SIEL and Tecunisch India. media firms. the firm have to closely monitor the supplier environment For Example – Let us take air conditioners. It consists of the sources that are involved in promoting. Carrier Aircon as a larger producer of compressors has been enjoying the major influence in the industry. suppliers suddenly become direct competitors to a firm. They constitute one of the five forces shaping competition in any industry. selling and distributing its goods to the final buyers. Marketing service agencies consists of marketing research firms. and hence the profits a firm can take home.identifies new need coming up . hence it is very important for the for the company to maintain the good relations with the resellers in order to motivate them to promote their brand. In India major domestic suppliers for compressors are Kirloskar. They deal in various brand of the same product. they influence the costs of raw materials and other inputs to a firm. Obviously. It is in this context that the trade –off between integrating vs outsourcing of supplies assumes importance for a firm because this has implications on the cost as well as quality fronts. (3)Marketing Intermediaries: Also constitute an important component of the value delivery network of the company. processes and business practices. Carrier Aircon. marketing service agencies and financial intermediaries. (2)Suppliers: we have seen that the suppliers form a very important link between the company and customers and their value delivery network. Physical distribution firms are the one who are involved in storing the companies‟ products and moving them to the place of sale. Suppliers also keep introducing frequent changes in their products. by themselves becoming end products manufacturers. have to communicate it to the R&D dept. Compressors are the major component and they account for 65 percent of the end price. Marketing intermediaries include – resellers. Sometimes. advertising agencies that promote the companies‟ . Resellers include wholesalers and retailers who buy and resell the products. so the suppliers of the compressors have a major influence in this industry. Hence we can say that the Internal Marketing is very essential for the smooth functioning of the marketing activities in the company and they all have the impact on the working of marketing. and co-ordinate the process to get what is required by its customer To manage the supply and demand of the product there is a need to co-ordinate the activities between the production and the marketing department.

Then there is a General public. so the company needs to be concerned about those who may talk about their company also. which comprises of individuals who purchase goods/ services for personal consumption. which influences the companies ability to obtain funds that is if the company does not maintain good relations with the banks or other financial institutions it may face the problems in the long run. the marketer needs to study various types of customer markets. banks. (4) Customers : We have already seen that a successful business strategy involves designing products and marketing programmes that incorporate attributes which provide value to consumers. Only by studying. Only by keeping a track of what the customers want one can grab the opportunities emerging in the environment. the positive or adverse media attention on an organisations product or services can in some cases make or break an organisation. The various publics include Financial public. (6)Publics: These are various groups of individuals who have actual or potential interest in the working of the organisation and some how effect its working. Each market is different and the marketing approach towards every market will be different. Media Public. That is why we give a great importance to consumer analysis as a part of survey. insurance companies. They have to answer the question what benefit can the organisation offer which is better that their competitors? So they need to constantly keep track of competitor‟s strategies and change as and when required. buy for further processing. Government markets buy the goods and services to provide it to the people who need it. apart from meeting the needs and wants of the target markets the marketer needs to provide the products better than its competitors. . which has an impact on its strategies. Business markets. so the marketer needs to understand the market that it is catering to. demand and customer-related factors can firm carry out their business/ marketing planning effectively.product to the target market and give information to them. Reseller market buys to resell at a profit. They are Consumer markets. it consists of people who may or may not be consuming the organisations product or services but form some attitude towards the company or its products. Next. Financial intermediaries constitutes. (5)Competitors: To be successful. credit companies who insure and take the risk associated with the products / services.

religious composition and literacy levels need to be studied. migration of the population needs to be studied. age. literacy levels and other statistics. like size. growth rate. (1)Demographic environment: Demography means the study of human population in terms of size. It consists of larger societal forces that affect the companies‟ micro environment. . several factors relating to population. It is continuously changing and the company needs to be flexible to adapt. households patterns. occupation. gender. This study is very important to be done by a marketer as his whole business depends on the people As a Matter of fact. growth. race.Macro Environment: Includes all factors that can influence an organisation but that are out of their direct control. regional or geographical characteristics. age distribution. as they all are part of the demographic environment. Aspects such as composition of workforce.

Organisations start cutting back on costs that is labour. And. An economy. what is less commonly known is that it has a comparatively young population (2)Economic Environment: The marketing managers need to keep track of the economic environment. The spending is low because of high unemployment. so the firms need to keep track of the availability of raw materials and if there is going to be any shortage in the future. .The population is increasing by around 18 million each year. In modern times. as it affects the buying power and spending patterns of consumers. protection of wild life and ocean wealth. because of this confidence spending by consumers is also high. Business depends on the natural resources for raw materials. In this period there would be the demand for the products that offer economy and efficiency and offer value. ecology. as consumers will not spend because of low disposable income. They also need to know the role of environmental activists in the region. climate etc. especially about issues like environmental pollution. All businesses are affected by economical factors nationally and globally. which is booming. As the technology develops it causes lot of environmental threats like increased pollution and is damaging the environment. inflation and recession. Unemployment is low . An economy which is in recession is characterized by high unemployment and low confidence. advertising etc. While studying the economic environment three economic areas that are of greatest concern to most marketers are the distribution of income. waste and material costs. job confidence is high. At this time the organisations have to be able to keep up with increased demand if they are to increase turnover. recession or recovery will effect consumer behaviour. While most people will be aware that India has a huge population. all societies are very much concerned about ecology. governments are becoming active bargainers in environmental regulations and to what extent these factors will affect their business prospects. The natural resources. Businesses face a tough time. Ecology: Firms are also concerned with ecology.The population of India was estimated to be just under 967 million in July 1997. is characterized by certain variables. They try to improve existing products and introduce new ones that would help the manufacturers reduce production hours. Whether an economy is in boom. constitutes the natural environment. in the country. (3)Natural Environment : The inputs needed by the businesses to carry out their production and various activities are available in nature.

Segmentation helps the marketer avoid „trial-and-error‟ methods of strategy formulation by providing an understanding of these customers upon which he can tailor the strategy 3. Que-17 what is Market Segmentation? Ans-17 Market Segmentation The concept of market segmentation has helped marketing decision making since the evolution of marketing. segmentation aids in the implementation of the marketing concept 4. These firms have to study the climate in depth and decide their production locations and marketing territories appropriately. and firms depending on climate –dependent raw materials will be particularly concerned with this factor. The goal of market segmentation is to partition the total market for a product or service into smaller groups of customer segments based on their characteristics.Climate: This is another aspect of the natural environment that is of interest to a business firm. . Because segmentation seeks to isolate significant differences among groups of individuals in the market. Segmentation helps the marketer by identifying groups of customers to whom he could more effectively „target‟ marketing efforts for the product or service 2. their potential as customers for the specific product or service in question and their differential reactions to marketing programs. On-going customer analysis and market segmentation provides important data on which long-range planning (for market growth or product development) can be based. it can aid marketing decision making in at least four ways: 1. . Firms with products whose demand depends on climate. In helping the marketer to address and satisfy customer needs more effectively.

Improved marketing research that pinpoints desires of different segments.You can understand from the following sections how a variety of firms could identify potential market segments and develop consumer profiles. 4. broad consumer market through one basic marketing plan. A firm sells items through all possible outlets. For successful pure mass marketing. D.A firm develops consumer profiles after establishing bases of segmentation. and separating them from consumers with different characteristics and needs . CHOOSING A TARGET MARKET APPROACH Undifferentiated Marketing (Mass Marketing) A. . 3. 2. C. These profiles identify potential market segments by aggregating consumers with similar characteristics and needs. 2. A reduction in total production and marketing costs because of segmentation. Growth of competition. B. a large group of consumers must have a desire for the same product attributes or consumer demand must be so diffused that it would not be worthwhile for a firm to aim marketing plans at specific segments. 1. Both total and long run profits should be considered. Stimulated demand by appealing to specific segments.Que-18 Explain Market Targeting ? Ans-18 TARGETING THE MARKET IDENTIFYING POTENTIAL MARKET SEGMENT : . A major objective of undifferentiated marketing is to maximize sales. Use of this approach has declined in recent years due to the following: 1. An undifferentiated marketing approach aims at a large.

with a different marketing plan for each. F. 2. appealing to a large segment that is laden with competition. They have one or more major brands for the mass market and secondary brands geared toward specific segments. G. In a world that is getting more and more homogenized. use both undifferentiated marketing and concentrated marketing approaches in their multiple-segmentation strategy. Differentiated marketing should enable the firm to achieve several objectives: Que-19 Explain Positioning? Ans-19 Positioning Having chosen an approach for reaching the firm‟s target segment. The concept of positioning seeks to place a product in a certain „position‟ in the minds of the prospective buyers. Every product must have a positioning statement. Competitors‟ strengths should be avoided and weaknesses exploited. such as Hyundai. Total profits are not maximized. If concentrated marketing is used. or products. Firms such as Maruti-Suzuki use differentiated marketing to attract all segments. such as Time Inc. Differentiated Marketing (Multiple Segmentation) A. The majority fallacy. A distinct niche can be carved out for a particular brand. C. Mass production. but what you do to the mind of your customer. Differentiated marketing combines the best attributes of undifferentiated marketing and concentrated marketing.. Positioning is not what you do to your product. D. 1. brands. should be avoided. The company needs to tailor its marketing program for its segment better than competitors. but not all segments. mass distribution. Others. A potentially profitable segment may be one ignored by other firms. B. It appeals to two or more distinct market segments. C. differentiation and positioning hold the key to marketing success! Ries and Jack Trout . and Microsoft appeal to two or more segments.define positioning as: Positioning is your product as the customer thinks of it. depending on modifications needed.Concentrated Marketing A. 2. 2. marketers must then decide how best to position the product in the market. Positioning is the act of designing the company‟s offer so that it occupies a distinct and valued place in the target customers‟ minds. E. Some companies. and mass advertising are not necessary. It can succeed with limited resources and abilities by concentrating efforts. specific consumer group through one specialized marketing plan catering to the needs of that segment. it is essential for a firm to do a better job than competitors in several areas. B. 1. Company resources and abilities must be able to produce and market two or more different sizes. Costs vary. because only one segment is sought. Concentrated marketing is popular for small firms for these reasons: 1. . Per unit profits can be maximized through market segmentation. A concentrated marketing approach aims at a narrow.

Company resources and abilities must be able to produce and market two or more different sizes. Differentiated marketing should enable the firm to achieve several objectives: .Que -20 Explain Prepatual Mapping? Ans-20 Perceptual Mapping: when we define Perceptual mapping we say that it is basically a technique to represent what people think about products or services. such as Hyundai. C. use both undifferentiated marketing and concentrated marketing approaches in their multiple-segmentation strategy. It appeals to two or more distinct market segments. depending on modifications needed. and Microsoft appeal to two or more segments. and if you perceive them to be dissimilar then you are putting them apart. Firms such as Maruti-Suzuki use differentiated marketing to attract all segments. 2. Others. This approach is a combination of the best attributes of undifferentiated marketing and concentrated marketing A. people or ideas. B. They have one or more major brands for the mass market and secondary brands geared toward specific segments. Joint space analysis combines perceptions about the brands and consumer preferences in a single space. but not all segments. Technically they are all objects. with a different marketing plan for each. Costs vary. Que-21 Explain Differentiated Marketing? Ans-21Differentiated marketing: In this we are focusing on two or more segments and we are formulating different marketing mix for each segment and accordingly different marketing plan for each segment are also made. or products. It is a spatial representation of the perceptions about the brands on the parts of different individuals. Differentiated marketing combines the best attributes of undifferentiated marketing and concentrated Marketing .. Brands . 1. such as Time Inc. Some companies. If you perceive the brands to be similar then you are getting them closer in the perceptual space.

a company can produce more sales by following a differentiated marketing approach. It may be a small segment.Que-22 What is Differentiated and Undifferentiated Targeting? Ans-22 1. it also raises production. Since this approach ties a firm‟s growth to a particular segment. A common example is the case of Model T built by Henry Ford and sold for one price to everyone who wanted to buy. Along with its benefits. With concentrated marketing (also known as niche marketing). A firm that attempts to satisfy everyone in the market with one standard product may suffer if competitors offer specialized units to smaller segments of the total market and better satisfy individual segments. It is still aimed at satisfying a large part of the total market. inventory and promotional costs. He agreed to paint his cars any colour that consumers wanted. Despite higher marketing costs. . concentrated marketing has its dangers. Niche marketing leaves the fortunes of a firm to depend on one small target segment. Undifferentiated Marketing A firm may produce only one product or product line and offer it to all customers with a single marketing mix. It used to be much more common in the past than it is today. This approach can appeal to a small firm that lacks the financial resources of its competitors and to a company that offers highly specialized good and services. the firm markets a number of products designed to appeal to individual parts of the total market. also called mass marketing. a firm may opt for a concentrated marketing approach. changes in the size of that segment or in customer buying patterns may result in severe financial problems. „as long as it is black‟. a company may be forced to practice differentiated marketing in order to remain competitive. Such a firm is said to practice undifferentiated marketing. By providing increased satisfaction for each of many target markets. Que-23 What is Concentrated Targeting? Ans-23 Concentrated Marketing Rather than trying to market its products separately to several segments. a firm focuses its efforts on profitably satisfying only one market segment. In general. Instead of marketing one product with a single marketing program. it also brings in inherent dangers. Sales may also drop if new competitors appeal successfully to the same segment. 2. Differentiated Marketing Firms that promote numerous products with different marketing mixes designed to satisfy smaller segments are said to practice differentiated marketing. While undifferentiated marketing is efficient from a production viewpoint (offering the benefits of economies of scale). but a profitable segment.

Penetrating pricing) Direct Vs. catalog) Public relations Price promotions – for the consumers and the channel Trade shows and special event . Indirect channels Channel length Channel breadth (exclusive.Que-24 What are the elements of Marketing Mix or 4p’s of Marketing ? Ans-24 Elements of the Marketing Mix Product Sub-Elements Product design Product positioning Product name and branding Packaging and labeling Breadth and depth of product line Level and type of customer service Product warranty New product development process Product life cycle strategies Manufacturer. selective or intensive) Franchising policies Policies to ensure channel coordination and control Price Place (distribution channels) Advertising Promotion Sales force policies (marketing communications) Direct marketing (mail. wholesaler and retailer selling prices Terms and conditions Bidding tactics Discount policies New product pricing (Skim Vs.

term. symbol. business cards) Employees _ Recruiting _ Training _ Motivation _ Rewards _ Teamwork Customers _ Education --Training Physical evidence People Que-26 What is Brand? Ans-26 A name.g. Something used to show customers that one product is different then the products of another manufacturer. or symbols that make up a name used to identify and distinguish the firm‟s offerings from those of its competitors. or design used to identify the products of one firm and to differentiate them from competitive offerings. Worlds. letters. . sign.Que-25 What are 3P’s of Marketing? Ans-25 3 Ps in Services Sub-Elements Marketing Process Flow of activities Service script (number of steps) Customer involvement Facility design Service ambience Equipment Signage Employee dress Point-of-sale displays Other tangibles (e.

Modern marketing methods demand that. fully recognized that packaging helps in branding and promoting brand loyalty. packaging may cut marketing costs thus adding to profit. Moreover. The consumer demands uniformity each time he purchases a product. iii.Que-27 What is product Packaging? Ans-27 PACKAGING Earlier. Protection and presentation are the basic functions of a packaging ii. A package must be made to consistent and rigid quality standards. Every package must have eye appeal . ROLE OF PACKAGING 1) It helps increase sales 2) It adds to the use of a product 3) It helps promote a product 4) It contributes to the safety of a product 5) It helps in storage 6) It helps in product differentiation QUALITIES OF GOOD PACKAGING _ Attractive appearance _ Convenient for storage and display _ Shield against damage or spoiling _ Product description shown on the package FUNCTION OF PACKAGING ESPECIALLY FOR CONSUMER GOODS i. For some toiletries. packaging costs actually exceeded the costs of contents. it is however. Transport economics v. package be convenient to handle transport requirements. packaging was considered a major expense in marketing. Every package must be recognizable and vi. It also enables the buyers to handle and carry their products with case. iv. Today.

The label provides customers with product information to aid their purchase decision or help improve the customer‟s experience when using the product (e. The label is likely to be the first thing a new customer sees and thus offers their first impression of the product. storage conditions. Theorists expect that rational behaviour will result in an effort to maximize gains and minimize losses. In international trade. that make it easy for resellers. to checkout customers and manage inventory. Qur-29 Define Pricing Objectives? Ans-29 While pricing objectives vary from firm to firm..Que-28 What is Product Labelling? Ans-28 Labeling Labeling is regarded as part of marketing because packaging decision making involves the consideration of the labeling requirements. Profits are a function of revenue and expenses. are imprinted with information intended to assist the customer. labeling decisions are extremely important for the following reasons. whether final customer packaging or distribution packaging.      Labels serve to capture the attention of shoppers. they can be classified into four major groups: (1) Profitability objective (2) Volume objectives (3) Meeting competition objectives. recipes). For consumer products. if necessary etc. According to the regulations labeling of food items should disclose information about a number of aspects like date of manufacturing. Profits = Revenue – Expenses Revenue is determined by the product‟s selling price and number of units sold: Total revenue = Price Quantity sold . For companies serving international markets or diverse cultures within a single country. radio frequency identification (RFID) tags. Statutory obligations are important aspects of labeling. It presumes that firms will behave rationally. Most packages. bilingual or multilingual labels may be needed. such as retailers. Profitability objectives: Classical economic theory bases its conclusions on certain assumptions. in some cases. Volume objectives pursue either sales maximization or market-share goals. Labels generally include a universal product codes (UPC) and. expiry date or optimum storage period for good which do not have an indefinite storage period. composition.g. and (4) Prestige objectives Profitability objectives include profit maximization and target-return goals. The use of catchy words may cause strolling customers to stop and evaluate the product. Many countries have laid down labeling requirements in respect of a number for commodities. many countries insist that labeling should be done in the absence of such a statutory requirement. necessary method of use.

These kinds of objectives deemphasize the price element of the marketing mix and focus competitive rivalries more strongly on non-price variables. They set a minimum acceptable profit level and then seek to maximize sales in the belief that the increased sales are more important than immediate high profits to the long-run competitive picture. Because such price changes directly affect overall profitability in an industry. stockholders and the public. A 10% price increase that results in only an 8% cut in volume will add to the firm‟s revenue. Prestige objectives: The final category of pricing objectives. Value is not just price. determines product choice. other marketing mix elements gain importance in purchase decisions.A profit maximizing price. therefore. For example. promotional decisions and distribution – the non-price elements of the marketing mix. unrelated to either profitability or sales volume. When price discounts become normal elements of a competitive marketplace. In many lines of business. firms set their own prices to match those of established industry price leaders. Another volume-related pricing objective – the market share objective – sets a goal to control a portion of the market for a firm‟s good or service. Consequently. Profit maximization is identified as the point at which the addition to total revenue is just balanced by the increase in total cost. not just price. Valuepriced products generally cost less than premium brands. Prestige pricing establishes a relatively high price to develop and maintain an image of quality and exclusiveness that appeals to status-conscious consumers. they serve as tools for evaluating performance. Meeting competition objectives: A third set of pricing objectives seeks simply to meet competitor‟s prices. Value pricing emphasizes benefits a product provides in comparison to the price and quality levels of competing offerings. but also is linked to the performance and meeting expectations and needs of consumers. Volume-related goals such as sales maximization and market share objectives play important roles in most firms‟ pricing decisions. still other firms can easily duplicate a price reduction themselves. encompasses prestige objectives. In such instances. a 10% price hike that results in an 11% sales decline will reduce revenue. many firms attempt to promote stable prices by meeting competitors‟ prices and competing for market share by focusing on product strategies. This strategy typically works best for relatively low-priced goods and services. Target return objectives offer several benefits for marketers in addition to resolving pricing questions. overall product value. marketers set target return objectives – short-run or long-run goals usually stated as percentages of sales or investments. They also satisfy desires to generate „fair‟ profits as judged by management. Volume objectives: Many marketers argue that pricing behaviour actually seeks to maximize sales within a given profit constraint. Such a firm continues to expand sales as long as its total profits do not drop below the minimum return acceptable to management. but marketers point out that value does not necessarily mean cheap. Pricing is a highly visible component of a firm‟s marketing mix and an easy and effective tool for obtaining a differential advantage over competitors. Such objectives reflect . rises to the point at which further increases will cause disproportionate decreases in the number of units sold. However. The challenge for those who compete on value is to convince customers that low-priced brands offer quality comparable to that of a higher-priced product. The company‟s specific goal may target maintaining its present share of a particular market or increasing its share.

and others describe it as a loose coalition of business firms that have come together for purpose of business. some see it as a route taken by a product as it moves from the producer to the consumer. The function of these firms involves buying. Given all these different perspectives it is not possible to have one single definition for marketing channels. The term external means that the marketing channel exists outside the firm. Marketing channel strategy is one of the major strategic areas of marketing. variations can be seen in the external contactual organizations and the way in which the management operates. banks ad agencies do not come under these and are referred to as facilitating agencies. Managing of the marketing channel therefore involves the use of interorganizational management (managing more than one firm) rather than intraorganizational management (managing one firm). selling and transferring of goods and services. a company can eliminate intermediaries but cannot eliminate the functions they perform. In most cases eliminating middlemen will not reduce prices.one intermediary acting as a link between the manufacturer and the consumer Two level structure. Transportation companies. Customers may view marketing channels as simply „a lot of middlemen‟ standing between the producer and the product. In simple terms. The term contractual organization refers to those firms who are involved in the negotiatory function as the product moves from the producer to the end user. One Level structure.marketers‟ recognition of the role of price in creating an overall image for the firm and its goods and services. contractual organization. There are four terms in this definition that has to be given a special mention namely external. In simpler terms a channel then consists of producer. because the amount that goes to the intermediaries compensates them for the performance of tasks that must be accomplished regardless of whether or not an intermediary is present. operates and distribution objectives. The third term operates suggests the involvement of management in the channels and this may range from the initial development of the channel structure to the day-to-day management. consumer and any intermediary. Marketing channels can be defined as the external contractual organization that management operates to achieve its distribution objectives.two people interceding before the product reaches the consumer Three Level structures. Que-30 Nature and types of Marketing Channels ? Ans-30 Marketing Channels Different people perceive marketing channels in different ways . When the objectives change. public warehouses.Firms when they go global they use the help of agents to take their productsto the wholesalers and then to the retailers before reaching the end consumer . Finally the distribution objectives explain the distribution goals the organization has in mind.

Importance of Distribution Channels   As noted. Thus. Obviously when we talk about intangible services the use of the word “hands” is a figurative way to describe the exchange that takes place. Dell Computers sells mostly through the Internet and not in retail stores) may still need assistance with certain parts of the distribution process (e. marketers who are successful without utilizing resellers to sell their product (e. For example.Que-31 What are Channels of Distribution ? Ans-31 Channels of Distribution the distribution decision is primarily concerned with the supply chain‟s front-end or channels of distribution that are designed to move the product (goods or services) from the hands of the company to the hands of the customer.e. . In Dell‟s case creating their own transportation system makes little sense given how large such a system would need to be in order to service Dell‟s customer base. All activities and organizations helping with the exchange are part of the marketer‟s channels of distribution. distribution channels often require the assistance of others in order for the marketer to reach its target market.g. But why exactly does a company need others to help with the distribution of their product? Wouldn‟t a company that handles its own distribution functions be in a better position to exercise control over product sales and potentially earn higher profits? Also. While companies can do without the assistance of certain channel members. But the idea is the same as with tangible goods.. by using shipping companies Dell is taking advantage of the benefits these services offer to Dell and to Dell‟s customers.g.. doesn‟t the Internet make it much easier to distribute products thus lessening the need for others to be involved in selling a company‟s product? While on the surface it may seem to make sense for a company to operate its own distribution channel (i. Dell uses parcel post shippers such as FedEx and UPS).. for many marketers some level of channel partnership is needed. handling all aspects of distribution) there are many factors preventing companies from doing so.

In the case of wholesaling this excludes manufacturers or producers who are involved directly in the production of the goods.Que-32 what is Retailing and Wholesaling ? Ans-32 WHOLESALING This includes all the activities involved in selling goods and services to those who buy for resale purpose. . having control on all distribution means the marketer is always in direct contact with buyers of their products. being responsible for all distribution means the marketing organization need only worry about making decisions concerning their product. such as resellers. which can make it easier to build strong. long-term relationships with customers. They are the marketing intermediaries that buy from one source and sell it to another. Such an arrangement provides the marketer with two important benefits. The difference between the two forms lies in if they take title to the goods they sell Retailing In an ideal business world. are involved in distribution attention is not given to a single supplier but is stretched across all products the reseller carries. The intermediaries‟ performing the wholesaling function is predominantly divided into two types namely merchants and agents. First. The main function of a wholesaler is facilitating the transportation of the product and at times in the transfer of the titles. When others. most marketers would prefer to handle all their distribution activities by way of the corporate channel arrangement. Second.

They buy from producers and resell to retailers. agents.Agents Agents are mainly used in international markets. but the title will remain with the producer. This approach is used where goods need to get into a market soon after the order is placed e. They sell on to a wholesaler that will store it and eventually resell to a retailer.g.Que-33 Different types of Intermediaries ? Ans-33 Types of Channel Intermediaries There are many types of intermediaries such as wholesalers. direct marketing (from manufacturer to user without an intermediary). Channel Intermediaries Retailers Retailers will have a much stronger personal relationship with the consumer. They are difficult to motivate. 2. A wholesaler will often take on the some of the marketing responsibilities. Retailers often have a strong „brand‟ themselves e. A consumer will expect to be exposed to many products. or sales force costs. and many others. Channel Intermediaries . However.g. They provide storage facilities. retailers. The retailer will hold several other brands and products. or travel agents. customer service costs. foodstuffs). They take ownership or „title‟ to goods whereas agents do not (see below). Modelo. Agents can be very expensive to train. a „stockist agent‟ will hold consignment stock (i. and Jumbo in Portugal. Channel Intermediaries Wholesalers They break down „bulk‟ into smaller packages for resale by a retailer. will store the stock. Retailers will often offer credit to the customer e. 3. . 4. cheese manufacturers seldom wait for their product to mature. the Internet.g. There are low barriers low barriers to entry as set up costs are low. and Alisuper. 1. Channel Intermediaries Internet The Internet has a geographically disperse market. The main benefit of the Internet is that niche products reach a wider audience e. electrical wholesalers. Many produce their own brochures and use their own telesales operations. This means that capital is not tied up in goods.e. An agent will typically secure an order for a producer and will take a commission.g.g. Products and services are promoted and merchandised by the retailer. For example. The retailer will give the final selling price to the product. Wholesalers offer reduce the physical contact cost between the producer and consumer e. They are difficult to keep control of due to the physical distances involved. overseas distributors. Ross and Wall-Mart in the USA. They do not tend to take title to the goods. Scottish Salmon direct from an Inverness fishery.

or services by an identified sponsor Advertising is mass communication of information intended to persuade buyers so as to maximize profits IMPORTANCE OF ADVERTISING (i) Way of Informing Advertising is a way of communicating information to the consumer –information which enables him to compare and choose from the products and services available. such as. a skillfully used advertising campaign can be the cheapest means of reaching the market and commutating with the consumers effectively. Even though advertising costs a lot of money. Here a macro level mass communication is between manufacturer and his mass (iii)Fundamental Right of Freedom of Speech Advertising being a necessary means of communication is an inseparable part of free speech. This includes the process of mass communication which is different from ordinary communication. Advertising makes them aware of the products and their attributes . and the costs are increasing day by day. Advertising stimulates production and consequently generates more employment. By December. it had captured 40 per cent of Indian market . Advertising stimulates sales and compels the firm to improve its productivity and contributes substantially to the growth of the economy. There is ample evidence to support this view. Any restriction on the right to recommend legitimate services or ideas in public will diminish the fundamental right of freedom of speech (iv) Improving productivity Advertising can help in improving the economies of developed and developing countries. (v) Economic Growth of Country Advertising is an essential and integral part of the marketing system. Promise. Advertising is wasteful if it fails to produce sales. It is sometimes maintained that the marketing system is nothing but requirement of a country‟s social and economic growth. goods. It can help stabilize prices and leads to wider distribution and greater availability of goods an services. was able to snatch a 15 per cent share of the market by strong customer –oriented advertisement.Que-34 Define Advertising ? Ans-34 Advertising. Thus marketing and advertising are key tools used to aid a country‟s growth. 1995. Pepsi came to India with a zero market share. a toothpaste manufactured by a small –scale unit. People feel safe in purchasing products they know of. or an immunization programme. Advertisement leads to an increase in sales and market share. Advertising enables consumbers to exercise their right of free choice (ii) Manufacturer’s concerns Advertising is the most economical means by which a manufacturer or an institution can communicate to an audience either to sell a product or to promote a cause of social welfare. civic drive.Any paid form of nonpersonal presentation and promotion of ideas.

. Frequent-user incentives are programs developed to reward customers who engage in repeat (frequent) purchases. A trade sales promotion method encourages wholesalers and retailers to stock and actively promote a manufacturer‟s products. . direct mail. online. either with or without an additional purchase of the product. . A rebate is a return of part of the purchase price of a product.Samples are the most expensive sales promotion technique. 1. door-to-door calling. . Samples.Coupons may also offer free merchandise.They are made available to customers through newspapers. arranging demonstrations or exhibitions. Most sales promotional methods can be classified as promotion techniques either for consumer sales or for trade sales.An airline‟s frequent-flyer program is one example of a frequent-user incentive. a free-sample campaign. A premium is a gift that a producer offers the customer in return for using its product.Que-35 What is Sales Promotion ? Ans-35 Sales promotion . Coupons. increased PR activity. . temporary price reductions. Premiums.Rebating is a relatively low-cost promotional method. A number of factors enter into marketing decisions about which and how many sales promotion methods to use. telemarketing. A sample is a free product given to customers to encourage trial. and in shelf dispensers in the store. . It may include an advertising campaign. Frequent-User Incentives. .Short-term incentives to encourage the purchase or sale of a product or service An activity designed to boost the sales of a product or service. setting up competitions with attractive prizes. 3 .These coupons may be worth anywhere from a few cents to a few dollars. Que-36 WHAT ARE METHODS FOR SALES PROMOTION? Ans-36 Sales Promotion Methods. direct mail. A coupon reduces the retail price of a particular product by a stated amount at the time of purchase. offering free gifts or trading stamps. . A consumer sales promotion method attracts consumers to particular retail stores and motivates them to purchase certain new or established products. 2.Frequent-user incentives build customer loyalty. . You must be familiar with many of the following sales promotion methods: Rebates. or in stores. personal letters on other methods”. magazines.Usually the rebate is offered by the producer to consumers who send in a coupon along with a specific proof of purchase. .Samples may be offered via online coupons.

Direct communications with carefully targeted individual consumers to obtain an immediate response. Not only must the company relate constructively to customers. Que-38 What is Direct Marketing? Ans-38 Direct marketing Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. A public is any group that has an actual or potential interest in or impact on a company’s ability to achieve its objectives. Direct marketing is the use of consumer-direct (CD) channels to reach and deliver goods and services to customers without using marketing middlemen.Que-37 What are Public Relations? Ans-37 Public relations Building good relations with the company‟s various publics by obtaining favorable publicity. but it must also relate to a large number of interested publics. and dealers. and events. Public relations (PR) involves a variety of programs designed to promote or protect a company‟s image or its individual products. suppliers. building up a good “corporate image. stories. .” and handling or heading off unfavorable rumors.

images). such as visuals (e. sounds (e. salespeople can be .. The message source can be an individual (e.g. salesperson) or an organization (e. Internet chat. through advertising). and email. such as phone numbers. which involves mental and physical processes necessary to construct a message in order to reach a desired goal (i..g. This undertaking consists of using sensory stimuli. symbols. Reduce Noise – In many promotional situations the marketer has little control over interference with their message. the source must engage in message encoding. and scents (e. Feedback can be improved by providing easy-to-use options for responding.. words.. Clearly. Allow Feedback – Encouraging the message receiver to provide feedback can greatly improve communication and help determine if a marketer‟s message was decoded and interpreted properly.. there are a few instances where the marketer can proactively lower the noise level. spoken word). symbols. For a message to be understood the receiver must decode the message by undertaking mental and physical processes necessary to give meaning to the message. marketers should focus on the following to improve communication with their targeted audience:    Carefully Encode – Marketers should make sure the message they send is crafted in a way that will be interpreted by message receivers as intended. convey meaningful information).g. From the information just discussed. a message can only be decoded if the receiver is actually exposed to the message. In order to convey a message. For instance.. fragrance) to convey a message. Message Receiver – The receiver of communication is the intended target of a message source‟s efforts. Keys to Effective Communication For marketers understanding how communication works can improve the delivery of their message. However.Que-39 Describe Marketing Communication Process? Ans-39 Communication Process For communication to occur there must be at least two participants:   Message Source – The source of communication is the party intending to convey information to another party. This means having a good understanding of how their audience interprets words. sounds and other stimuli used by marketers.g.e.g.

While historically advertising has involved one-way communication with little feedback opportunity for the customer experiencing the advertisement.. the Internet has increased the options that allow customers to provide quick feedback. such as consumers. Taken together these comprise the promotion mix. Choose Right Audience – Targeting the right message receiver will go a long way to improving a marketer‟s ability to promote their products. Messages are much more likely to be received and appropriately decoded by those who have an interest in the content of the message. and particularly the news media. In this section a basic definition of each method is offered while in the next section a comparison of each method based on the characteristics of promotion is presented. such as members of a company buying center). mostly paid promotions often using mass media outlets to deliver the marketer‟s message. the advent of computer technology and. the use of retail coupons with expiration dates requires customers to act while the incentive is still valid. this type of promotion uses thirdparty sources. . trained to reduce noise by employing techniques that limit customer distractions. including the use of whitespace in magazine ads.     Advertising – Involves non-personal. Sales Promotion – Involves the use of special short-term techniques.g. to offer a favorable mention of the marketer‟s company or product without direct payment to the publisher of the information. For instance. this form of promotion involves personal contact between company representatives and those who have a role in purchase decisions (e. make the decision. such as a conference facility. such as scheduling meetings during non-busy times or by inviting potential customers to an environment that offers fewer distractions. though newer technologies allow this to occur online via video conferencing or text chat. Personal Selling – As the name implies. in particular. Additionally. or have an influence on a decision. Public Relations – Also referred to as publicity. often in the form of incentives. to encourage customers to respond or undertake some activity. advertising can be developed in ways that separates the marketer‟s ad from others. Often this occurs face-toface or via telephone. Que-40 What is Promotion Mix? Ans-40 Promotion Mix Marketers have at their disposal four major methods of promotion.

Que41 Explain SWOT analysis? Ans-41SWOT Analyses Strength Do we have a unique competitive advantage? Do we have sufficient financial resources? Can we do something better than our competitors? Do buyers think well of us? Are we known as the market leader ? Do we have most modern technologies? Can we produce at market at lower costs? Does our management team have a good track record? Weaknesses Do we have lack of a clear strategic direction? Are our facilities obsolete? Is our profitability lesser than others? Do we have lack of management depth and talent? Are we missing any key skills? Do we have internal operating problems? We have short of cash to fund current and future business efforts Do we have a weak image in the market? Opportunities Can we enter in new market? Can we expand our product line? Can we grow the Market size? THREATS Are we likely to get new competitors? Other products that may be substituted for our product? Will new government policies hold up our business? Are we defenseless to economic downturns? Will buyers‟ tastes and preferences change? Will demographic shifts hurt us? .

g. brand manager etc. using or consuming goods and services. daughter. o Sub-culture A group of people with shared value systems based on common life experiences and situations. Personal Factors o Age and life-cycle stage Single Married without children Married with children Married without dependent children Single without dependent children Single without children Single with children Occupation Blue color job Junior Executive Senior Executive Small Business Entrepreneur Entrepreneur of group of companies Economic situations Single Married without children Married with children . o Family A family is a group of two or more people related by blood. perceptions. wants and behaviors learned by a member of society from family and other important institutions.Que-42 What is consumer behaviour? Factors affecting Consumer behaviour? Ans-42Consumer Behavior Consumer behavior is the decision process and physical activity of an individual or group. marriage. Characteristics Affecting Consumer Behavior Cultural Factors o Culture The set of basic values. when they are evaluating. Social Class o Groups Two or more people who interact to accomplish individual or mutual goals. husband. or adoption living together in a household o Roles and Status A role consists of the activities people are expected to perform according to the persons around them e. acquiring.

Personality and self-concept A person‟s distinguishing psychological characteristics that leads to relatively consistent and lasting responses to his or her own environment. . Learning Changes in an individual‟s behavior arising from experience. Psychological factor Motivation A need that is sufficiently pressing to direct the person to seek satisfaction of the need. organize. feelings.Married without dependent children Single without dependent children Single without children Single with children Life Style A person‟s pattern of living as expressed in his or her activities. Belief and attitudes Belief A descriptive thought that a person holds about something. Attitudes A person‟s consistently favorable or unfavorable evaluations. Perception The process by which people select. and expressions toward an object or idea. and interpret information to form a meaningful picture of the world. interests and opinions.

or behavior. who might require separate products or Marketing mixes. Major Segmentation Variables for Consumer Markets GEOGRAPHIC SEGMENTATION World region City or metro size Density Climate Demographic Segmentation Age and Life Cycle Stage Gender Family Size Family Life Cycle Income segmentation Occupation Education Religion Cast Generation Nationality PSYCHOGRAPHICS Social Class Lifestyle Personality BEHAVIORAL Occasions Benefits User status Usage rate Loyalty status Readiness Stage Attitude toward product .Que-43 Market Segmentation and its variables? Ans-43 Market Segmentation Dividing a market into distinct groups of buyers on the basis of needs. characteristics.

with a group of target consumers to find out the perception of the consumer. Concept & Image Development A product concept is a detailed version of the new-product idea stated in meaningful consumer terms. marketer tests the market with realistic approach by free sampling of the product or by any other sources. G. they go a head for commercialization. B. Idea Generation The systematic search for new-product by generating ideas through Research and Development. Test Marketing Before the full introduction of the product.Que-44 What are New Product Development Strategies/Process? Ans-44 New Product Development Strategy/Process A. Marketing Strategy Development Designing an initial marketing strategy for a new product based on the product concept. Product Development Developing the product concept into a physical product in order to assure that the product idea can be turned into a workable product. If the test market is in the favor of the organization. F. E. Concept Testing Concept testing is the process of testing new product concepts. H. A product image is the way consumers perceive an actual or potential product. Idea Screening Screening new product-ideas in order to accept good ideas and drop poor ones as soon as possible. I. to find out whether these factors satisfy the company‟s objectives or not. costs. Commercialization After the test marketing organization decides whether it should launched or not. C. revenue and profit of the new product. D. Business analysis In the process of business analysis we are analyzing the sales. .

and competitor‟s prices.Que-45 Explain Promotion Mix? Ans-45 Promotion Mix A. By Product Pricing Setting a price for by products in order to make the main product‟s price more competitive. Product Bundle Pricing In this approach we create package rates by combining several products and offering the bundle at a reduced price. Public Relations Building good relations with the company‟s various publics and corporate clients by publicity and interacting in favorable moods and media. Personal Selling It is personal presentation by the firm‟s sales force for the purpose of making sales and building customer relationship. C. B. C. E. Sales Promotion It is short-term incentives. such as blades for a razor and film for a camera. Direct Marketing Direct communications with targeted individual consumer to obtain an immediate response and development of long-term relationship. . D. based on differences of different product‟s cost. E. as well as handling unfavorable rumors. Captive Product Pricing Setting a price or products that must be used along with a main product. to encourage the purchase or sale of a product or service. Advertising Any paid form of non-personal presentation and promotion of ideas. or services by an identified sponsor. Que-46 Explain Product Mix Pricing Strategies? Ans-46 Product Mix Pricing Strategies A. D. Optional Product Pricing Optional product pricing is the pricing of accessory products along with a main product or price for extra value added with the main product. features. goods. B. stories and events are also the part of public relation. Product Line Pricing Setting the price steps between various products in a product line.

b. who purchase merchandise or services out of season.Que-47 Explain Factors and Approaches of Pricing? Ans-47 Factors Affecting Pricing Decision A. Environment General Pricing Approaches A. storing. Cost Based Price a. Cost d. Breakeven pricing In this pricing approach we tried to achieve our break even in our desired time period. Value Based Pricing Setting price based on buyers perceptions of value rather than on the seller‟s cost. Seasonal discount The seller offers this discount. Organizational Consideration B. Cost-plus pricing Adding a standard markup to the cost of the product. b. C. . c. Marketing Mix Strategy c. Allowance Allowance is promotional Money paid by the manufacturers to the retailers against his performance or as per agreement. Functional discount This discount is offered by the seller for the member of the trade channel who performs certain function for seller. Demand c. d. External Factors a. and record keeping. B. Que-48 Explain Price Adjustment Strategies? Ans-48 Price Adjustment Strategies A. Internal Factors a. Cash Discount Cash discount is for those customers who pay their bills punctually or in advance. e. Quantity discount Quantity discount is reduction in price for those customers who purchases in bulk quantity. Competition d. The Market b. Discount and Allowance Pricing a. for those buyers. such as selling. Competition Based Pricing Setting prices based on the prices that competitors charge for similar products. Marketing Objective b.

B. Zone Pricing A geographical pricing strategy. in which the company divide their all clients location in different zones as per distance with the production house and fix charges for each zone. Freight-absorption Pricing A geographical pricing strategy in which the company absorbs all or part of the actual freight charges in order to get the business. This communications is carrying out through E-mail. Fax. Promotional Pricing Temporarily pricing products below the list price. C. etc. Forms Of Direct Marketing a) Face to Face Marketing b) Telemarketing c) Direct Mail Marketing d) Catalog marketing e) Direct Response Television Marketing f) Kiosk Marketing . Geographical Pricing a. where the difference in prices is based on the differences in the environment of the segment. FOB Origin Pricing A geographical pricing strategy in which goods are placed free on board a carrier and the customer pays the actual freight from the factory to the destination. regardless of the city far from the production house. F. e. Basing Point Pricing A geographical pricing strategy in which the seller designates some city as a basing point and charges all customers the freight cost from that city to the customer location. and sometimes even below cost. Segmented Pricing Selling a product or service at two or more prices. to increase short-run sales. Catalogues. Uniform-delivered pricing A geographical pricing strategy. D. regardless of their location. c. b. All customers within a zone pay the same price. Psychological Pricing In this approach price is based on the perceptions of the consumer for the product. in which the company charges the same price plus freight to all customers. Telephone. Reference Prices Price that buyers carry in their minds and refer to when they look at a given product. Direct mail. The more distance of zone causes higher the price d. Que-49 Concept of Direct Marketing? Ans-49 Direct Marketing Direct communications with targeted individual consumers to achieve an immediate response and develop long lasting customer relationships. E.

c. h. b. Allowance Promotional money paid by manufacturers to retailers in return for an agreement to treat the manufacturer‟s products preferable than any other. Price pack In this strategy the producer directly reduced price and marked the label or package. Sweepstake. B. e. Discount A straight reduction in price on purchases the same brand during a declared period of time. i. Cash Refund Offer Offer to refund part of the purchase price of a product to consumers who send a “proof of purchase” to the manufacturer. This demonstration should be in the favor of the retailer. d. Coupon This is a certificate that gives buyers for saving when they purchase a specified product again. Patronage Reward It is cash or other awards for those customers who are regularly using products or services of a certain company. Point of Purchase (POP) Display or demonstrate products at the point of purchases or sales. Games Promotional events in which consumers get a chance to win something such as cash. Sample A small amount of a product offers free to the consumer for trial. Premium Another goods offer either free or at low costs as an incentive to buy a main product. Advertising Specialties Useful items printed with an advertiser‟s name.Que-50 What are Promotion tools? Ans-50 Sales Promotion Tools A. f. g. b. trips. . given as a gift to consumers. Consumer Promotion Tools a. Trade Promotional Tools a. Business Promotional Tools Conventions and Trade Shows are organizing for corporate and industrial clients. or goods by luck or through extra effort. C. Contests.

Product Publicity Publicizing any specific products by focusing on its unique specialty. Investor Relations Developing relationships with investors and shareholders of the organization. stories and events are also the part of public relation. d. Press Release Creating and placing news worthy information for ultimate consumer/customer in the media. if the pull strategy effect successfully. Consumer will demand the product from channel members. Pull strategy In this strategy the marketing strategies are directly hit the final consumer to induce them to buy the product. Public Affairs Building and maintaining a strong brand relation with national or local communities. or service. .Que-51 What are Promotion Mix Strategies? Ans-51 Promotion Mix Strategies Push strategy A promotion strategy in which pushes the product through distribution channels to final consumer. b. e. a. generates relation with donors and social workers. f. c. Public Relations Building good relations with the company‟s various publics and corporate clients by publicity and interacting in favorable moods and media. product. to attract attention for a person. Lobbying Developing and maintaining relations with legislators and government officials to influence legislations and regulations in favor of the organization. as well as handling unfavorable rumors. Development To gain financial and volunteer support.

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