Marketing Assignment on Short Notes.mba

8/2/2019 Marketing Assignment on Short Notes.mba

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SHORT NOTES

ASSIGNMENT

OF

MARKETING MANAGEMENT

SUBMITTED TO-; SUBMITTED BY-;

Mr. LALIT SINGLA RAJAT VERMA

LECTURAR M.M MBA-2/A

RIMT-IMCT ROLL NO-95072238768

RIMT-IMCT


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Q-1 What is Market and Marketing?

Ans-1market - 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-profits 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:

Developing products that satisfy needs, including products that enhance societys

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)


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Q-3 What is Marketing Management?

Ans-3Marketing is a key function of management. It brings success to businessorganisation. 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 relationshipswith them. Involves getting, keeping & growing customers

through creating , deliveringand communicating superior customer value.

Q-4 Explain Process of Marketing?

Ans-4 The marketing process as follows:-

Himalaya Publishing HouseMarketing Management

Dr. K. Karunakaran

Chapter 1

Introduction to Marketing

The Marketing Process

1. Strategy formulation the development of the broadest marketing/businessstrategies 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 short-term programs which generally focus on integrated approaches for agiven product and on the allocation of scarce resources such as sales effort orproduct 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 andstrategies 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.


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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 Maslows need hierarchy, all the human needs can be categorized as

shown in the diagram

Maslows Hierarchy Of Needs

Wants:The needs become wants they are directed to specific objects that might satisfy the needs.

Eg: MercedesNeeds Pre-exists (cant be created

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

them.


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Que-6 What is market myopia concept?

Ans-6 Marketing myopia -Sellers who concentrate their thinking on thephysicalproduct instead of the customers needare 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?

Selling1. Emphasis is on the product

2. Company Manufactures the productfirst

3. Management is sales volume oriented

4. Planning is short-run-oriented in

terms of todays

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 costs8. 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

Marketing1. Emphasis on consumer needs wants

2. Company first determines customersneeds 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 todays

products and terms of new products,

tomorrows 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 everysphere, 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


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Que-8 What are the different basis of classification of marketing?

Ans-8 Different Types of MarketBefore delving too deep into the study of marketing, it is worth pausing to consider thedifferent types of market that exist. Markets can be analysed via the product itself, or end-

consumer, or both. The most common distinction is betweenconsumer and industrial

markets.

1)Consumer MarketsConsumer markets are the markets for products and services bought by Individuals for their

own or family use. Goods bought in consumer markets can be categorised in several ways

a) Fast-moving consumer goods (FMCGs)Fast-moving consumer goods are those that sell in high volumes, with low unit value, and have

fast consumer repurchase. Good examples include ready meals, baked beans, newspapers etc

b) Consumer durables: These have low volume but high unit value. Consumerdurables are often.

further divided into:

White goods (e.g. fridge-freezers; cookers; dishwashers;

microwaves)

Brown goods (e.g. DVD players; games consoles;

personal computers)

Soft goods: Soft goods are similar to consumer durables, except that they wear out more

quickly and therefore have a shorter replacement cycle

Examples include clothes, shoesServices (e.g. hairdressing, dentists, childcare)

2)Industrial MarketsIndustrial markets involve the sale of goods between businesses .These are goods that are not

aimed directly at consumers. Industrial markets

include

Selling finished goods

Examples include office furniture, computer systems

a)Selling raw materials or components

Examples include steel, coal, gas, timberb)Selling services to businessesExamples include waste disposal, security, accounting

& legal services


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Que-9 What are core concepts of Marketing?

Ans-9 Core Marketing concepts

Needs, Wants and Demands

The most basic concept underlying marketing is that of human needs. A need is astate of felt deprivation. It is a part of the human makeup. Humans have manyneeds, viz.,physical needs, social needs, spiritual needs and so on. Wants are the form taken byneedsas they are shaped by the ones culture and personality. Wants are thus shaped byboththe internal and external factors. Wants are described in terms of objects that willsatisfyneeds. For example, thirst is a need. To quench this thirst, a person may consider anumber of options drink water or a soft drink or a fruit juice. These objects (which

represent the different choices for a person to fulfil his/her need) comprise thepotentialwant-list. As people are exposed to more objects that arouse their interest anddesire,marketers try to provide more choices, that is, more want-satisfying products. Peoplehave almost unlimited wants but limited resources. Therefore, they want to chooseproducts that provide the most satisfaction for their money. When backed by buyingpower (ability), a want becomes a demand.


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ProductsA product is anything that can be offered to a market to satisfy a need or want.People satisfy their needs and wants with products. Though the word suggests aphysicalObject , the concept of product is not limited to physical objects. Marketers often use

the Expressions goods and services to distinguish between physical products andintangible ones. These goods and services can represent cars, groceries,computers, places, persons and even ideas. Customers decide which entertainers towatch on television, which places to visit for a holiday, which ideas to adopt for theirproblems and so on. Thus the termproduct covers physical goods, services and a variety of other vehicles that cansatisfy customers needs and wants. If at times the term product does not seem tobe appropriate, other terms such as market offering, satisfier are used.]

Value and SatisfactionWhen the customers have so many choices to choose from to satisfy a particularneed, how do they choose from among these many products? They make theirbuying choices based on their perceptions of a products value. The guiding conceptis customer value. A customer will estimate the capacity of each product to satisfyhis need. He/She might rank the products from the most need-satisfying to the leastneed-satisfying. Of course, the ideal product is the one which gives all the benefits atzero cost, but no such product exists. Still, the customer will value each existingproduct according to how close it comes to his/her ideal product and end upchoosing the product that gives the most benefit for the rupee the greatest value.

Exchange, Transactions and Relationships

Marketing occurs when people decide to satisfy needs and wants through exchange.Exchange is the act of obtaining a desired object from someone by offeringsomething in return. Thought it is only one of the many ways people can obtain adesired object, it allows a society to produce much more than it would with anyalternative system. For an exchange to take place, several conditions must besatisfied. Of course, at least two parties must participate, and each must havesomething of value to the other. Each party also must want to deal with the otherparty and each must be free to accept or reject the others offer. Finally, each partymust be able to communicate and deliver. These conditions simply make exchangepossible. Whether the exchange actually takes place depends on the parties comingto an agreement. If they agree, we must conclude that the act of exchange has left

both of them better off or at least not worse off. After all, each was free to reject oraccept the offer. In this sense, exchange creates value just as production createsvalue. It gives customers more consumption possibilities. A transaction ismarketings unit of measurement. It consists of a trade of values between twoparties. A monetary transaction involves trading goods and services in return formoney whereas a barter transaction involves trading goods and services forother goods and services. Transaction marketing is part of the larger idea ofrelationship marketing. Marketing is shifting from trying to maximize the profit oneach individual transaction to maximizing mutually beneficial relationships withconsumers and other parties. This is based on the assumption that if goodrelationships are built, profitable transactions will simply follow.


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MarketsThe concept of transactions leads to the concept of a market. A market is the setof actual and potential buyers of a product. It may exist in a physical environment asa marketplace or in a virtual environment (on the internet platform) as a marketspace. To understand the nature of a market, imagine a primitive economy

consisting of only four people a farmer, a fisherman, a potter and a hunter. In thefirst case, self-sufficiency, they gather the needed goods for themselves. In thesecond case, decentralized exchange, each person sees the other three as potentialbuyers who make up a market. In the third case, centralized exchange, a newperson called a merchant appears and locates in a central area called amarketplace. Each trader brings goods to the merchant and trades for otherneeded goods. Merchants and central marketplaces greatly reduce the total numberof transactions needs to accomplish a given volume of exchange. As economiesgrow, exchange becomes even more centralized, as seen in the growth of hugecompanies. Large supermarkets now serve millions of people who formerly shoppedin smaller outlets.

Que-10 Suggest Alternative channels of Marketing?Ans-10 There are 5 Alternative concepts of marketing are-;Production a) Consumers favour products that are availableand highly affordableb) Improve production and distributionc) Availability and affordability is what the customer wants.

Producta) Consumers favour products that offer the most quality, performanceand innovative features

b)A good product will sell itself.

Sales a) Consumers will buy products only if the company promotes/ sells theseproductsb)Creative advertising and selling will overcome consumers resistance and convincethem to buy.

Marketing a) Focuses on needs/ wants of target markets and deliveringsatisfaction better than competitors.b) The consumer is king! Find a need and fill it.

Relationship marketing a) Focuses on needs/ wants of target markets anddelivering superior valueb)Long-term relationships with customers and other partners lead to success.


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So in very short-:

Production Concept -Consumers prefer products that are widely available and

inexpensive

Product Concept- Consumers favour products that offer the most quality, performance,or innovative features

Selling- Concept Consumers will buy products only if the company aggressively

promotes or sells these products

Marketing Concept- Focuses on needs/wants of target markets & delivering value better

than competitors

Societal Marketing- Focuses on needs/ wants of target Concept markets & delivering

value better than competitors that preserves the consumers and societys well -being

Que-11 Define PLC-product life Cycle?

Ans-11 Product Life Cycle:

All products possess life cycles. A product's life cycle, abbreviated PLC, the life cycle refers

to the period from the products first launch into the market until its final withdrawal and it

is split up in phases. The understanding of a products life cycle, can help a company to

understand and realize when it is time to introduce and withdraw a product from a market,

its position in the market compared to competitors, and the products success or failure.

The products life cycle - period usually consists of five major steps : Product Development,

Introduction Stage, Growth Stage, Maturity Stage and finally Decline Stage. 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. 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 products sales performance.


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Stages of Product Life Cycle:

(1)Product Development:

Product development phase begins when a company finds and develops a new product

idea. This involves translating various pieces of information and incorporating them into a

new product. A product is usually undergoing several changes involving a lot of money andtime during development, before it is exposed to target customers via test markets. Those

products that survive the test market are then introduced into a real marketplace and the

introduction phase of the product begins. Personal computers are undergoing rapid

advances in which significant new functions (benefits) are constantly added. Similar

advances are occurring in software development.


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(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.

Large expenditure on promotion and advertising is common. A company must be prepared

to spend a lot of money and get only a small proportion of that back. In this phase

distribution arrangements are introduced. Having the product in every counter is very

important and is regarded as an impossible challenge. Some companies avoid this stress by

Hiring external contractors or outsourcing the entire distribution arrangement. 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.

Rapid change, increasing competition, complexity, organizational stress and high customer

expectations have combined to support a process for reducing product development time.

Idea generation is the first step, with input gathered from customers, users, market

research, outside inventors, competitors, 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. Here prototypes are developed, marketing plans are undertaken and abusiness plan is developed. Frequently prototypes are shown or tested by prospective

customers. Test markets are conducted, and the plans are revised as needed. Once

completed, the prototypes and plans are reviewed again against expected objectives.

If everything is on track, the new product moves into final development. Financial estimates are reviewed

against the objectives. The tooling begins, and advertising and promotion programs are finalized and initiated.

A good example of such a launch is the launch of Windows XP by Microsoft Corporation.


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(3)Growth Stage:

The growth stage is where the rising tide of consumer interest lifts the boats of all

participants. If there were no competitors in the introduction stage, they are now a factor.

Consequently, additional product features and support may be needed. Prices are steady todeclining, as every participant in the industry is focused on market share and becoming the

low-cost producer. Costs are declining with increasing volumes, and profits are improving.

Distribution is increasing as well. Competitors are attracted to enter the market.

Usually this is the stage that requires the heaviest investment in marketing to educate, build

share and support sales activity. While a marketing plan was developed in the introduction

stage, adjustments to the marketing mix are usually required in the growth stage.

For example-Walls Ice Cream growth was an outstanding 40%, achieved through anexciting stream of innovations, aggressive market penetration, 360 Degree Communication

(TV Commercials, Outdoor, Print and Visibility activation) and constant attention to

consumer affordability. During the year, 25 new products were launched; some examples are:

Kulfi, Moo, Super Twin, Magnum Caramel & Nuts Bar, Cornetto Super relaunch, In Home

premium range, Cornetto Junior, Magnum premium range and Donut.


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(4)Maturity Stage:

The market maturity stage occurs when the market has become saturated. Sales growth

rate tends to decrease. Efforts are focused on differentiation of the product. Pricing may be

lower because of increased competition. More internal pressure is placed on reducing costs.

Margins begin to shrink as marginal competitors are forced out of the market. Distribution is

maxed, and promotions come into play as a way to encourage preference over competing

products.

Market share becomes the main focus in the maturity stage. The market is well established.

There are numerous players, although some have started falling by the wayside, and the

competitive pressures are building. If your profits are steady or increasing, regardless of

where you are on the product life cycle, you are well positioned. On the other hand, if

profits are flat or decreasing, then it is time to take action..

Lipton continued to be the star brand, carrying the premium image that it has

established over many years. With strong on-ground activation and successful

consumer promotions the brand had double digit growth. Lipton tea bags are the

market leader.


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(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. Dilemmas such as

maintenance, spare part availability, service competitions reaction in filling the market gap

are some issues that increase the complexity of the decision process to withdraw a productfrom the market. 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.

Sometimes it is difficult for a company to conceptualize the decline signals of a product.

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. Distribution is

narrowed.

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). Actual

purchasing is only one stage of the process. Not all decision processes lead to a purchase. All

consumer decisions do not always include all 6 stages, determined by the degree of

complexity.


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The 6 stages are:

1. Problem Recognition(awareness of need)--difference between the desired state and

the actual condition. Deficit in assortment of products. Hunger--Food. Hunger

stimulates your need to eat.

see a commercial for a new pair of shoes, stimulates your recognition that you needa new pair of shoes.

2. Information search--

o Internal search, memory.

o External search if you need more information. Friends and relatives (word of

mouth). Marketer dominated sources; comparison shopping; public sources

etc.

A successful information search leaves a buyer with possible alternatives, the evoked

set.Hungry, want to go out and eat, evoked set is

chinese food, indian food , burger king , KFC etc

3. Evaluation of Alternatives--need to establish criteria for evaluation, features the

buyer wants or does not want. Rank/weight alternatives or resume search. May

decide that you want to eat something spicy, indian gets highest rank etc.

If not satisfied with your choice then return to the search phase. Information from

different sources may be treated differently. Marketers try to influence by "framing"

alternatives.

4. Purchase decision--Choose buying alternative, includes product, package, store,

method of purchase etc.5. Purchase--May differ from decision, time lapse between 4 & 5, product availability.

6. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. Cognitive

Dissonance, have you made the right decision. This can be reduced by warranties,

after sales communication etc.

After eating an indian meal, may think that really you wanted a chinese meal instead


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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, know when we say it

doesnt work in isolation that means there are various forces could be external or internal,

controllable or uncontrollable which are working on it. 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. The

effectiveness of marketing decision is proved if it has a strong information system offering

the firm a competitive advantage.

A marketing information system (MIS) is a set of procedures and methods designed to

generate, analyze, disseminate, and store anticipated marketing decision information on a

regular, continuous basis.


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Components of MIS-:


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Que-14 How do Marketers assist the customer during research

and evaluation stage of their Purchase Decision Process?

Ans-14 Information about the marketAnalysis of the market potential for existing products (e.g. market size, growth, changing

sales trends)

Forecasting future demand for existing productsAsessing the potential for new productsStudy of market trendsAnalysis of competitor behaviour and performanceAnalysis of market shares

Information about ProductsLikely customer acceptance (or rejection) of new productsComparison of existing products in the market (e.g. price, features, costs, distribution)

Forecasting new uses for existing productsTechnologies that may threaten existing productsNew product development

Information about Pricing in the MarketEstimates and testing of price elasticity

Analysis of revenues, margins and profitsCustomer perceptions of just orfair pricingCompetitor pricing strategies

Information about Promotion in the MarketEffectiveness of advertising

Effectiveness of sales force (personal selling)

Extent and effectiveness of sales promotional activitiesCompetitor promotional strategies

Que-15 What is Marketing Environment?

Ans-15 Marketers need to be good at building relationships with

customers, others in company and external partners. To do

effectively, they must understand the major environmental forces that

surround all of these relationships.

A companys marketing environment consist of the actors and

forces outside marketing that effect marketing managements

ability to build and maintain successful relationships with target

customers.


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Que-16 What is Micro and Macro Environment?

Ans-16Micro EnvironmentFactors that an organization has direct control over

Macro EnvironmentFactors on which organization has no control at all .

Micro EnvironmentThese are the internal forces close to the company and have a direct impact on the

organization strategy. It influences the organization directly. It describes the relationship

between the firms and the driving forces that control their relationship. It is more local

relationship and the firm may exercise a degree of influence.

(1)The Company: constitutes the internal environment of the organisation, which consists

of men, money, materials and machinery. If marketing has to function well it has tocoordinate the activities with all the other members / departments involved in the

organization as they have a great impact on its functioning, The major departments which

make up the company consists of, marketing, finance, research & development, purchasing,

manufacturing, accounting and others. Top management formulates the organisations

missions, vision and values. 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.

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.

Research & development is involved in developing the new products giving life to new ideas

so the marketing department, if, finds any changes in the tastes of the consumers and


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identifies new need coming up , have to communicate it to the R&D dept. 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. 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.

(2)Suppliers:we have seen that the suppliers form a very important link between thecompany and customers and their value delivery network. They constitute one of the five

forces shaping competition in any industry. They have their own bargaining power in the

industry; they influence the costs of raw materials and other inputs to a firm, and hence the

profits a firm can take home. It is in this context that the tradeoff between integrating vs

outsourcing of supplies assumes importance for a firm because this has implications on the

cost as well as quality fronts. Suppliers also keep introducing frequent changes in their

products, processes and business practices. Sometimes, suppliers suddenly become

direct competitors to a firm, by themselves becoming end products manufacturers. Obviously,

the firm have to closely monitor the supplier environment

For ExampleLet us take air conditioners. Compressors are the major component and they

account for 65 percent of the end price, so the suppliers of the compressors have a major

influence in this industry. In India major domestic suppliers for compressors are Kirloskar,

Carrier Aircon, SIEL and Tecunisch India. Carrier Aircon as a larger producer ofcompressors has been enjoying the major influence in the industry.

(3)Marketing Intermediaries: Also constitute an important component of the valuedelivery network of the company. It consists of the sources that are involved in promoting,

selling and distributing its goods to the final buyers. Marketing intermediaries include

resellers, physical distributors, marketing service agencies and financial intermediaries.

Resellers include wholesalers and retailers who buy and resell the products. They deal in

various brand of the same product, 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. Physical distribution firms are the one who are involved in storing the companies

products and moving them to the place of sale. Marketing service agencies consists ofmarketing research firms, media firms, advertising agencies that promote the companies


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product to the target market and give information to them. Financial intermediaries

constitutes, insurance companies, banks, credit companies who insure and take the risk

associated with the products / services.

(4) Customers : We have already seen that a successful business strategy involves

designing products and marketing programmes that incorporate attributes which providevalue to consumers. Only by studying, demand and customer-related factors can firm carry

out their business/ marketing planning effectively. Next, the marketer needs to study various

types of customer markets.

They are Consumer markets, which comprises of individuals who purchase goods/ services

for personal consumption.

Business markets, buy for further processing. Reseller marketbuys to resell at a profit.

Government markets buy the goods and services to provide it to the people who need it.

Each market is different and the marketing approach towards every market will be different,

so the marketer needs to understand the market that it is catering to, which has an impact on

its strategies. Only by keeping a track of what the customers want one can grab the

opportunities emerging in the environment. That is why we give a great importance to

consumer analysis as a part of survey.

(5)Competitors: To be successful, apart from meeting the needs and wants of the targetmarkets the marketer needs to provide the products better than its competitors. 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 competitors strategies and change as and when

required.

(6)Publics: These are various groups of individuals who have actual or potential interest inthe working of the organisation and some how effect its working. The various publics include

Financial public, 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.

Media Public, the positive or adverse media attention on an organisations product or services

can in some cases make or break an organisation. Then there is a General public, 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, so the company needs to be concerned

about those who may talk about their company also.


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Macro Environment: Includes all factors that can influence an organisation but thatare out of their direct control. It consists of larger societal forces that affect the companiesmicro environment. It is continuously changing and the company needs to be flexible to

adapt.

(1)Demographic environment: Demography means the study of human population interms of size, growth rate, gender, age distribution, race, occupation, literacy levels and other

statistics. This study is very important to be done by a marketer as his whole business

depends on the people

As a Matter of fact, several factors relating to population, like size, growth, age, religious

composition and literacy levels need to be studied. Aspects such as composition of

workforce, households patterns, regional or geographical characteristics, migration of thepopulation needs to be studied, as they all are part of the demographic environment.


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The population of India was estimated to be just under 967 million in July 1997.The

population is increasing by around 18 million each year. While most people will be aware

that India has a huge population, what is less commonly known is that it has a comparatively

young population

(2)Economic Environment:The marketing managers need to keep track of theeconomic environment, as it affects the buying power and spending patterns of consumers.

While studying the economic environment three economic areas that are of greatest concern

to most marketers are the distribution of income, inflation and recession.

All businesses are affected by economical factors nationally and globally. Whether an

economy is in boom, recession or recovery will effect consumer behaviour. An economy,

which is booming, is characterized by certain variables. Unemployment is low , job

confidence is high, because of this confidence spending by consumers is also high. At this

time the organisations have to be able to keep up with increased demand if they are to

increase turnover.

An economy which is in recession is characterized by high unemployment and low

confidence. The spending is low because of high unemployment. Businesses face a tough

time, as consumers will not spend because of low disposable income. Organisations start

cutting back on costs that is labour, advertising etc. They try to improve existing products and

introduce new ones that would help the manufacturers reduce production hours, waste and

material costs. In this period there would be the demand for the products that offer economy

and efficiency and offer value.

(3)Natural Environment : The inputs needed by the businesses to carry out theirproduction and various activities are available in nature. The natural resources, ecology,

climate etc. in the country, constitutes the natural environment. Business depends on the

natural resources for raw materials, 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. As the technology develops it

causes lot of environmental threats like increased pollution and is damaging the environment.

Ecology: Firms are also concerned with ecology. In modern times, all societies are very much

concerned about ecology, especially about issues like environmental pollution, protection of

wild life and ocean wealth. And, governments are becoming active bargainers in

environmental regulations and to what extent these factors will affect their business

prospects. They also need to know the role of environmental activists in the region.


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Climate:This is another aspect of the natural environment that is of interest to a business

firm. Firms with products whose demand depends on climate, and firms depending on

climatedependent raw materials will be particularly concerned with this factor. These firms

have to study the climate in depth and decide their production locations and marketing

territories appropriately.

.Que-17 what is Market Segmentation?

Ans-17 Market SegmentationThe concept of market segmentation has helped marketing decision making sincethe evolution of marketing. The goal of market segmentation is to partition the totalmarket for a product or service into smaller groups of customer segments based ontheir characteristics, their potential as customers for the specific product or service inquestion and their differential reactions to marketing programs. Becausesegmentation seeks to isolate significant differences among groups of individuals in

the market, it can aid marketing decision making in at least four ways:

1. Segmentation helps the marketer by identifying groups of customers to whom hecould more effectively target marketing efforts for the product or service2. Segmentation helps the marketer avoid trial-and-error methods of strategyformulation by providing an understanding of these customers upon which he cantailor the strategy3. In helping the marketer to address and satisfy customer needs more effectively,segmentation aids in the implementation of the marketing concept4. On-going customer analysis and market segmentation provides important data onwhich long-range planning (for market growth or product development) can bebased.


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Que-18 Explain Market Targeting ?

Ans-18TARGETING THE MARKETIDENTIFYING POTENTIAL MARKET SEGMENT : - A firm develops consumer profilesafter establishing bases of segmentation. These profiles identify potential market segments by

aggregating consumers with similar characteristics and needs, and separating them from

consumers with different characteristics and needs .You can understand from the following

sections how a variety of firms could identify potential market segments and develop

consumer profiles.

CHOOSING A TARGET MARKET APPROACH

Undifferentiated Marketing (Mass Marketing)A. An undifferentiated marketing approach aims at a large, broad consumer market through

one basic marketing plan.

B. Use of this approach has declined in recent years due to the following:

1. Growth of competition.

2. Stimulated demand by appealing to specific segments.

3. Improved marketing research that pinpoints desires of different segments.

4. A reduction in total production and marketing costs because of segmentation.

C. A major objective of undifferentiated marketing is to maximize sales.

D. For successful pure mass marketing, 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. A firm sells items through all possible outlets.2. Both total and long run profits should be considered.


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Concentrated MarketingA. A concentrated marketing approach aims at a narrow, specific consumer group through one

specialized marketing plan catering to the needs of that segment.

B. Concentrated marketing is popular for small firms for these reasons:

1. Mass production, mass distribution, and mass advertising are not necessary.2. It can succeed with limited resources and abilities by concentrating efforts.

C. If concentrated marketing is used, it is essential for a firm to do a better job than competitors in

several areas.

1. The company needs to tailor its marketing program for its segment better than competitors.

2. Competitors strengths should be avoided and weaknesses exploited.D. The majority fallacy, appealing to a large segment that is laden with competition, should be

avoided.

E. A potentially profitable segment may be one ignored by other firms.

F. Per unit profits can be maximized through market segmentation. Total profits are not maximized,

because only one segment is sought.

G. A distinct niche can be carved out for a particular brand.

Differentiated Marketing (Multiple Segmentation)A. Differentiated marketing combines the best attributes of undifferentiated marketing and

concentrated

marketing. It appeals to two or more distinct market segments, with a different marketing

plan for each.

1. Firms such as Maruti-Suzuki use differentiated marketing to attract all segments. Others, such

as Hyundai, and Microsoft appeal to two or more segments, but not all segments.

2. Some companies, such as Time Inc., use both undifferentiated marketing and concentrated

marketing

approaches in their multiple-segmentation strategy. They have one or more major brands

for the mass market and secondary brands geared toward specific segments.B. Company resources and abilities must be able to produce and market two or more different sizes,

brands, or products. Costs vary, depending on modifications needed.

C. Differentiated marketing should enable the firm to achieve several objectives:

Que-19 Explain Positioning?Ans-19 PositioningHaving chosen an approach for reaching the firms target segment, marketersmust then decide how best to position the product in the market. The concept ofpositioning seeks to place a product in a certain position in the minds of the

prospective buyers. Positioning is the act of designing the companys offer so that itoccupies a distinct and valued place in the target customers minds. In a world that isgetting more and more homogenized, differentiation and positioning hold the key tomarketing success!Ries and Jack Trout ,define positioning as:Positioning is your product as the customer thinks of it. Positioning is not what youdo to your product, but what you do to the mind of your customer. Every productmust have a positioning statement.


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Que -20 Explain Prepatual Mapping?Ans-20Perceptual Mapping: when we define Perceptual mapping we say that it isbasically a technique to represent what people think about products or services, people or

ideas. Technically they are all objects. It is a spatial representation of the perceptions about

the brands on the parts of different individuals. If you perceive the brands to be similar then

you are getting them closer in the perceptual space, and if you perceive them to be dissimilar

then you are putting them apart. Joint space analysis combines perceptions about the brands

and consumer preferences in a single space.

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. This approach is a combination of the best attributes of undifferentiated marketing and

concentrated marketingA. Differentiated marketing combines the best attributes of undifferentiated marketing and

concentrated

Marketing . It appeals to two or more distinct market segments, with a different marketing

plan for each.

1. Firms such as Maruti-Suzuki use differentiated marketing to attract all segments. Others, such

as Hyundai, and Microsoft appeal to two or more segments, but not all segments.

2. Some companies, such as Time Inc., use both undifferentiated marketing and concentrated

marketing

approaches in their multiple-segmentation strategy. They have one or more major brands

for the mass market and secondary brands geared toward specific segments.

B. Company resources and abilities must be able to produce and market two or more different sizes,Brands , or products. Costs vary, depending on modifications needed.

C. Differentiated marketing should enable the firm to achieve several objectives:


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Que-22 What is Differentiated and UndifferentiatedTargeting?Ans-221. Undifferentiated Marketing

A firm may produce only one product or product line and offer it to allcustomers with a single marketing mix. Such a firm is said to practiceundifferentiated marketing, also called mass marketing. It used to be much morecommon in the past than it is today. A common example is the case of Model Tbuilt by Henry Ford and sold for one price to everyone who wanted to buy. Heagreed to paint his cars any colour that consumers wanted, as long as it is black.While undifferentiated marketing is efficient from a production viewpoint(offering the benefits of economies of scale), it also brings in inherent dangers. Afirm that attempts to satisfy everyone in the market with one standard productmay suffer if competitors offer specialized units to smaller segments of the totalmarket and better satisfy individual segments.

2. Differentiated MarketingFirms that promote numerous products with different marketing mixesdesigned to satisfy smaller segments are said to practice differentiated marketing.It is still aimed at satisfying a large part of the total market. Instead of marketingone product with a single marketing program, the firm markets a number ofproducts designed to appeal to individual parts of the total market. By providingincreased satisfaction for each of many target markets, a company can producemore sales by following a differentiated marketing approach. In general, it alsoraises production, inventory and promotional costs. Despite higher marketing

costs, a company may be forced to practice differentiated marketing in order toremain competitive.

Que-23 What is Concentrated Targeting?Ans-23Concentrated MarketingRather than trying to market its products separately to several segments, afirm may opt for a concentrated marketing approach. With concentratedmarketing (also known as niche marketing), a firm focuses its efforts onprofitably satisfying only one market segment. It may be a small segment, but aprofitable segment. This approach can appeal to a small firm that lacks the

financial resources of its competitors and to a company that offers highlyspecialized good and services. Along with its benefits, concentrated marketing hasits dangers. Since this approach ties a firms growth to a particular segment,changes in the size of that segment or in customer buying patterns may result insevere financial problems. Sales may also drop if new competitors appealsuccessfully to the same segment. Niche marketing leaves the fortunes of a firm todepend on one small target segment.


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Que-24 What are the elements of Marketing Mix or 4ps of

Marketing ?

Ans-24Elements of the

Marketing Mix

Sub-Elements

Product Product designProduct positioningProduct name and brandingPackaging and labelingBreadth and depth of product lineLevel and type of customer serviceProduct warrantyNew product development processProduct life cycle strategies

Price Manufacturer, wholesaler and retailer sellingpricesTerms and conditionsBidding tacticsDiscount policiesNew product pricing (Skim Vs. Penetratingpricing)

Place(distribution

channels)

Direct Vs. Indirect channelsChannel length

Channel breadth (exclusive, selective orintensive)Franchising policiesPolicies to ensure channel coordination andcontrol

Promotion(marketingcommunications)

AdvertisingSales force policiesDirect marketing (mail, catalog)Public relationsPrice promotions for the consumers and the

channelTrade shows and special event


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Que-25 What are 3Ps of Marketing?

Ans-25

3 Ps in ServicesMarketing

Sub-Elements

Process Flow of activitiesService script (number of steps)Customer involvement

Physical evidence Facility designService ambienceEquipment

SignageEmployee dressPoint-of-sale displaysOther tangibles (e.g. businesscards)

People Employees_ Recruiting_ Training

_ Motivation_ Rewards_ Teamwork Customers_ Education--Training

Que-26 What is Brand?

Ans-26 A name, term, sign, symbol, or design used to identify the products of onefirm and to differentiate them from competitive offerings. Something used to showcustomers that one product is different then the products of another manufacturer.Worlds, letters, or symbols that make up a name used to identify and distinguish thefirms offerings from those of its competitors.


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Que-27 What is product Packaging?

Ans-27 PACKAGINGEarlier, packaging was considered a major expense in marketing. For some

toiletries, packaging costs actually exceeded the costs of contents. Today, it ishowever, fully recognized that packaging helps in branding and promoting brandloyalty. It also enables the buyers to handle and carry their products with case.Moreover, packaging may cut marketing costs thus adding to profit.

ROLE OF PACKAGING1) It helps increase sales2) It adds to the use of a product3) It helps promote a product4) It contributes to the safety of a product5) It helps in storage6) 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 CONSUMERGOODSi. Protection and presentation are the basic functions of a packagingii. Modern marketing methods demand that, package be convenient to handle

transport requirements.iii. A package must be made to consistent and rigid quality standards. Theconsumer demands uniformity each time he purchases a product.iv. Transport economicsv. Every package must be recognizable andvi. Every package must have eye appeal


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Que-28 What is Product Labelling?

Ans-28 LabelingLabeling is regarded as part of marketing because packaging decision makinginvolves the consideration of the labeling requirements. In international trade, many

countries insist that labeling should be done in the absence of such a statutoryrequirement.Statutory obligations are important aspects of labeling. Many countries have laiddown labeling requirements in respect of a number for commodities. According to theregulations labeling of food items should disclose information about a number ofaspects like date of manufacturing, expiry date or optimum storage period for goodwhich do not have an indefinite storage period, composition, storage conditions,necessary method of use, if necessary etc.

Most packages, whether final customer packaging or distribution packaging, are imprintedwith information intended to assist the customer. For consumer products, labeling decisions

are extremely important for the following reasons.

Labels serve to capture the attention of shoppers. The use of catchy words may cause

strolling customers to stop and evaluate the product.

The label is likely to be the first thing a new customer sees and thus offers their first

impression of the product.

The label provides customers with product information to aid their purchase decision

or help improve the customers experience when using the product (e.g., recipes).

Labels generally include a universal product codes (UPC) and, in some cases, radio

frequency identification (RFID) tags, that make it easy for resellers, such as retailers,

to checkout customers and manage inventory.

For companies serving international markets or diverse cultures within a singlecountry, bilingual or multilingual labels may be needed.

Qur-29 Define Pricing Objectives?Ans-29 While pricing objectives vary from firm to firm, they can be classified intofour major groups:

(1) Profitability objective(2) Volume objectives(3) Meeting competition objectives, and(4) Prestige objectives

Profitability objectives include profit maximization and target-return goals.Volume objectives pursue either sales maximization or market-share goals.

Profitability objectives: Classical economic theory bases its conclusions on certainassumptions. It presumes that firms will behave rationally. Theorists expect thatrationalbehaviour will result in an effort to maximize gains and minimize losses. Profits are afunction of revenue and expenses.Profits = Revenue ExpensesRevenue is determined by the products selling price and number of units sold:

Total revenue = Price Quantity sold


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A profit maximizing price, therefore, rises to the point at which further increases willcause disproportionate decreases in the number of units sold. A 10% price increasethat results in only an 8% cut in volume will add to the firms revenue. However, a10% price hike that results in an 11% sales decline will reduce revenue. Profitmaximization is identified as the point at which the addition to total revenue is just

balanced by the increase in total cost. Consequently, marketers set target returnobjectives short-run or long-run goals usually stated as percentages of sales orinvestments. Target return objectives offer several benefits for marketers in additionto resolving pricing questions. For example, they serve as tools for evaluatingperformance. They also satisfy desires to generate fair profits as judged bymanagement, stockholders and the public.

Volume objectives: Many marketers argue that pricing behaviour actually seeks tomaximize sales within a given profit constraint. They set a minimum acceptable profitlevel and then seek to maximize sales in the belief that the increased sales are moreimportant than immediate high profits to the long-run competitive picture. Such a firm

continues to expand sales as long as its total profits do not drop below the minimumreturn acceptable to management. Another volume-related pricing objective themarket share objectivesets a goal to control a portion of the market for a firmsgood or service. The companys specific goal may target maintaining its presentshare of a particular market or increasing its share. Volume-related goals such assales maximization and market share objectives play important roles in most firmspricing decisions.

Meeting competition objectives: A third set of pricing objectives seeks simply tomeet competitors prices. In many lines of business, firms set their own prices tomatch those of established industry price leaders. These kinds of objectives de-emphasize the price element of the marketing mix and focus competitive rivalriesmore strongly on non-price variables. Pricing is a highly visible component of a firmsmarketing mix and an easy and effective tool for obtaining a differential advantageover competitors; still other firms can easily duplicate a price reduction themselves.Because such price changes directly affect overall profitability in an industry, manyfirms attempt to promote stable prices by meeting competitors prices and competingfor market share by focusing on product strategies, promotional decisions anddistribution the non-price elements of the marketing mix. When price discountsbecome normal elements of a competitive marketplace, other marketing mixelements gain importance in purchase decisions. In such instances, overall product

value, not just price, determines product choice. Value pricing emphasizes benefits aproduct provides in comparison to the price and quality levels of competing offerings.This strategy typically works best for relatively low-priced goods and services. Value-priced products generally cost less than premium brands, but marketers point outthat value does not necessarily mean cheap. Value is not just price, but also is linkedto the performance and meeting expectations and needs of consumers. Thechallenge for those who compete on value is to convince customers that low-pricedbrands offer quality comparable to that of a higher-priced product.

Prestige objectives: The final category of pricing objectives, unrelated to eitherprofitability or sales volume, encompasses prestige objectives. Prestige pricing

establishes a relatively high price to develop and maintain an image of quality andexclusiveness that appeals to status-conscious consumers. Such objectives reflect


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marketers recognition of the role of price in creating an overall image for the firmand itsgoods and services.

Que-30 Nature and types of Marketing Channels ?Ans-30 Marketing ChannelsDifferent people perceive marketing channels in different ways , some see it as aroute taken by a product as it moves from the producer to the consumer, and othersdescribe it as a loose coalition of business firms that have come together for purposeof business.Customers may view marketing channels as simply a lot of middlemen standingbetween the producer and the product. Given all these different perspectives it is notpossible to have one single definition for marketing channels. Marketing channelscan be defined as the external contractual organization that management operatesto achieve its distribution objectives.

There are four terms in this definition that has to be given a special mentionnamely external, contractual organization, operates and distribution objectives. Theterm external means that the marketing channel exists outside the firm. Managing ofthe marketing channel therefore involves the use of interorganizational management(managing more than one firm) rather than intraorganizational management(managing one firm). The term contractual organization refers to those firms whoare involved in the negotiatory function as the product moves from the producer tothe end user. The function of these firms involves buying, selling and transferring ofgoods and services.

Transportation companies, public warehouses, banks ad agencies do not comeunder these and are referred to as facilitating agencies. The third term operatessuggests the involvement of management in the channels and this may range fromthe initial development of the channel structure to the day-to-day management.Finally the distribution objectives explain the distribution goals the organizationhas in mind. When the objectives change, variations can be seen in the externalcontactual organizations and the way in which the management operates. In simplerterms a channel then consists of producer, consumer and any intermediary.

Marketing channel strategy is one of the major strategic areas of marketing. Inmost cases eliminating middlemen will not reduce prices, because the amount that

goes to the intermediaries compensates them for the performance of tasks that mustbe accomplished regardless of whether or not an intermediary is present. In simpleterms, acompany can eliminate intermediaries but cannot eliminate the functionsthey perform.One Level structure- one intermediary acting as a link between the manufacturerand the consumerTwo level structure- two people interceding before the product reaches theconsumerThree Level structures- Firms when they go global they use the help of agents totake their productsto the wholesalers and then to the retailers before reaching the

end consumer


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Que-31 What are Channels of Distribution ?

Ans-31 Channels of Distribution

the distribution decision is primarily concerned with the supply chains front-end or channelsof distribution that are designed to move the product (goods or services) from the hands of

the company to the hands of the customer. Obviously when we talk about intangible services

the use of the word hands is a figurative way to describe the exchange that takes place. But

the idea is the same as with tangible goods. All activities and organizations helping with the

exchange are part of the marketers channels of distribution.

Importance of Distribution Channels

As noted, distribution channels often require the assistance of others in order for the

marketer to reach its target market. But why exactly does a company need others tohelp with the distribution oftheir product? Wouldnt 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, doesnt the Internet make it much easier to

distribute products thus lessening the need for others to be involved in selling acompanys product?

While on the surface it may seem to make sense for a company to operate its own

distribution channel (i.e., handling all aspects of distribution) there are many factors

preventing companies from doing so. While companies can do without the assistance

of certain channel members, for many marketers some level of channel partnership is

needed. For example, marketers who are successful without utilizing resellers to sell

their product (e.g., Dell Computers sells mostly through the Internet and not in retailstores) may still need assistance with certain parts of the distribution process (e.g.,

Dell uses parcel post shippers such as FedEx and UPS). In Dells case creating their

own transportation system makes little sense given how large such a system would

need to be in order to service Dells customer base. Thus, by using shipping

companies Dell is taking advantage of the benefits these services offer to Dell and to

Dells customers.


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Que-32 what is Retailing and Wholesaling ?Ans-32 WHOLESALINGThis includes all the activities involved in selling goods and services to those whobuy for resale purpose. In the case of wholesaling this excludes manufacturers or

producers who are involved directly in the production of the goods. They are themarketing intermediaries that buy from one source and sell it to another. The mainfunction of a wholesaler is facilitating the transportation of the product and at times inthe transfer of the titles. The intermediaries performing the wholesaling function ispredominantly divided into two types namely merchants and agents. The differencebetween the two forms lies in if they take title to the goods they sell

Retailing

In an ideal business world, most marketers would prefer to handle all their distribution

activities by way of the corporate channel arrangement, Such an arrangement provides the

marketer with two important benefits. First, being responsible for all distribution means themarketing organization need only worry about making decisions concerning their product.

When others, such as resellers, are involved in distribution attention is not given to a single

supplier but is stretched across all products the reseller carries. Second, having control on all

distribution means the marketer is always in direct contact with buyers of their products,

which can make it easier to build strong, long-term relationships with customers.


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Que-33 Different types of Intermediaries ?Ans-33Types of Channel IntermediariesThere are many types of intermediaries such as wholesalers, agents, retailers, the Internet,

overseas distributors, direct marketing (from manufacturer to user without an intermediary),

and many others.

1. Channel Intermediaries -

Wholesalers

Theybreak down bulk into smaller packages for resale by a retailer.They buy from producers and resell to retailers. They take ownership or title to goods

whereas agents do not (see below).

They provide storage facilities. For example, cheese manufacturers seldom wait for theirproduct to mature. They sell on to a wholesaler that will store it and eventually resell to

a retailer.

Wholesalers offer reduce the physical contact cost between the producer and consumer

e.g. customer service costs, or sales force costs.A wholesaler will often take on the some of the marketing responsibilities. Many produce

their own brochures and use their own telesales operations.

2. Channel Intermediaries - Agents

Agents are mainly used in international markets.An agent will typically secure an order for a producer and will take a commission. They

do not tend to take title to the goods. This means that capital is not tied up in goods.

However, a stockist agent will hold consignment stock (i.e. will store the stock, 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.g. foodstuffs).

Agents can be very expensive to train. They are difficult to keep control of due to thephysical distances involved. They are difficult to motivate.


Retailers

Retailers will have a much stronger personal relationship with the consumer.The retailer will hold several other brands and products. A consumer will expect to be

exposed to many products.

Retailers will often offer credit to the customer e.g. electrical wholesalers, or travelagents.

Products and services are promoted and merchandised by the retailer.The retailer will give the final selling price to the product.Retailers often have a strong brand themselves e.g. Ross and Wall-Mart in the USA,

and Alisuper, Modelo, and Jumbo in Portugal.


Internet

The Internet has a geographically disperse market.The main benefit of the Internet is that niche products reach a wider audience e.g. Scottish

Salmon direct from an Inverness fishery.

There are low barriers low barriers to entry as set up costs are low.


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Que-34 Define Advertising ?

Ans-34 Advertising- Any paid form of nonpersonal presentation and promotion ofideas, goods, or services by an identified sponsor

Advertising is mass communication of information intended to persuade

buyers so as tomaximize profits

IMPORTANCE OF ADVERTISING

(i) Way of InformingAdvertising is a way of communicating information to the consumerinformationwhich enables him to compare and choose from the products and services available.Advertising enables consumbers to exercise their right of free choice(ii) Manufacturers concernsAdvertising 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 ofsocial welfare, such as, civic drive, or an immunization programme. This includesthe process of mass communication which is different from ordinary communication.Here a macro level mass communication is between manufacturer and his mass(iii)Fundamental Right of Freedom of SpeechAdvertising being a necessary means of communication is an inseparable part offree speech. Any restriction on the right to recommend legitimate services or ideas inpublic will diminish the fundamental right of freedom of speech(iv) Improving productivityAdvertising can help in improving the economies of developed and developingcountries. There is ample evidence to support this view. Advertising stimulates

production and consequently generates more employment. It can help stabilizeprices and leads to wider distribution and greater availability of goods an services.(v) Economic Growth of CountryAdvertising is an essential and integral part of the marketing system. It is sometimesmaintained that the marketing system is nothing but requirement of a countrys socialand economic growth. Advertising stimulates sales and compels the firm to improveits productivity and contributes substantially to the growth of the economy. Thusmarketing and advertising are key tools used to aid a countrys growth.Even though advertising costs a lot of money, and the costs are increasing day byday, a skillfully used advertising campaign can be the cheapest means of reachingthe market and commutating with the consumers effectively. Advertising is wasteful if

it fails to produce sales.Advertisement leads to an increase in sales and market share. Pepsi came to Indiawith a zero market share. By December, 1995, it had captured 40 per cent of Indianmarket . Promise, a toothpaste manufactured by a smallscale unit, was able tosnatch a 15 per cent share of the market by strong customerorientedadvertisement.People feel safe in purchasing products they know of. Advertisingmakes themaware of the products and their attributes


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Que-35 What is Sales Promotion ?Ans-35 Sales promotion- Short-term incentives to encourage the purchase or sale ofa product or service

An activity designed to boost the sales of a product or service. It may include an advertising

campaign, increased PR activity, a free-sample campaign, offering free gifts or tradingstamps, arranging demonstrations or exhibitions, setting up competitions with attractive

prizes, temporary price reductions, door-to-door calling, telemarketing, personal letters onother methods.

Que-36 WHAT ARE METHODS FOR SALES PROMOTION?

Ans-36 Sales Promotion Methods. Most sales promotional methods can be classified aspromotion techniques either for consumer sales or for trade sales.

1. A consumer sales promotion methodattracts consumers to particular retail stores and

motivates them to purchase certain new or established products.

2. A trade sales promotion methodencourages wholesalers and retailers to stock and activelypromote a manufacturers products.

3 . A number of factors enter into marketing decisions about which and how many sales

promotion methods to use.

You must be familiar with many of the following sales promotion methods:-

Rebates. A rebate is a return of part of the purchase price of a product.- Usually the rebate is offered by the producer to consumers who send in a coupon along with

a specific proof of purchase.

- Rebating is a relatively low-cost promotional method.

Coupons. A coupon reduces the retail price of a particular product by a stated amount atthe time of purchase.- These coupons may be worth anywhere from a few cents to a few dollars.

- They are made available to customers through newspapers, magazines, direct mail, online,

and in shelf dispensers in the store.

- Coupons may also offer free merchandise, either with or without an additional purchase of

the product.

Samples. A sample is a free product given to customers to encourage trial.- Samples may be offered via online coupons, direct mail, or in stores.

- Samples are the most expensive sales promotion technique.

Premiums. Apremium is a gift that a producer offers the customer in return for using its

product.Frequent-User Incentives. Frequent-user incentives are programs developed to reward

customers who engage in repeat (frequent) purchases.

- Frequent-user incentives build customer loyalty.

- An airlines frequent-flyer program is one example of a frequent-user incentive.


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Que-37 What are Public Relations?

Ans-37Public relationsBuilding good relations with the companys various publics by obtaining favorable publicity,

building up a good corporate image, and handling or heading off unfavorable rumors,

stories, and events.Not only must the company relate constructively to customers, suppliers, and dealers, but it

must also relate to a large number of interested publics.

A public is any group that has an actual or potential interest in or impact on a companys

ability to achieve its objectives.

Public relations (PR) involves a variety of programs designed to promote or protect a

companys image or its individual products.

Que-38 What is Direct Marketing?

Ans-38 Direct marketingDirect connections with carefully targeted individualconsumers to both obtain an immediate response and cultivate lasting customer relationships;

Direct communications with carefully targeted individual consumers to obtain an immediate

response. Direct marketing is the use of consumer-direct (CD) channels to reach and deliver

goods and services to customers without using marketing middlemen.


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Que-39 Describe Marketing Communication Process?

Ans-39 Communication Process

For communication to occur there must be at least two participants:

Message SourceThe source of communication is the party intending to convey

information to another party. The message source can be an individual (e.g.,

salesperson) or an organization (e.g., through advertising). In order to convey a

message, the source must engage in message encoding, which involves mental and

physical processes necessary to construct a message in order to reach a desired goal

(i.e., convey meaningful information). This undertaking consists of using sensory

stimuli, such as visuals (e.g., words, symbols, images), sounds (e.g., spoken word),

and scents (e.g., fragrance) to convey a message.

Message ReceiverThe receiver of communication is the intended target of amessage sources efforts. 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. Clearly, a message can only be decoded if the receiver is actually

exposed to the message.

Keys to Effective Communication

For marketers understanding how communication works can improve the delivery of their

message. From the information just discussed, marketers should focus on the following to

improve communication with their targeted audience:

Carefully EncodeMarketers should make sure the message they send is crafted in a

way that will be interpreted by message receivers as intended. This means having a

good understanding of how their audience interprets words, symbols, sounds and

other stimuli used by marketers.

Allow FeedbackEncouraging the message receiver to provide feedback can greatly

improve communication and help determine if a marketers message was decoded and

interpreted properly. Feedback can be improved by providing easy-to-use options for

responding, such as phone numbers, Internet chat, and email.

Reduce NoiseIn many promotional situations the marketer has little control over

interference with their message. However, there are a few instances where themarketer can proactively lower the noise level. For instance, salespeople can be


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trained to reduce noise by employing techniques that limit customer distractions, such

as scheduling meetings during non-busy times or by inviting potential customers to an

environment that offers fewer distractions, such as a conference facility. Additionally,

advertising can be developed in ways that separates the marketers ad from others,

including the use of whitespace in magazine ads.

Choose Right AudienceTargeting the right message receiver will go a long way toimproving a marketers 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.

Que-40 What is Promotion Mix?

Ans-40 Promotion Mix

Marketers have at their disposal four major methods of promotion. Taken together these

comprise the promotion mix. In this section a basic definition of each method is offered whilein the next section a comparison of each method based on the characteristics of promotion is

presented.

AdvertisingInvolves non-personal, mostly paid promotions often using mass mediaoutlets to deliver the marketers message. While historically advertising has involved

one-way communication with little feedback opportunity for the customer

experiencing the advertisement, the advent of computer technology and, in particular,

the Internet has increased the options that allow customers to provide quick feedback.

Sales PromotionInvolves the use of special short-term techniques, often in the

form of incentives, to encourage customers to respond or undertake some activity. For

instance, the use of retail coupons with expiration dates requires customers to actwhile the incentive is still valid.

Public RelationsAlso referred to as publicity, this type of promotion uses third-

party sources, and particularly the news media, to offer a favorable mention of the

marketers company or product without direct payment to the publisher of the

information.

Personal SellingAs the name implies, this form of promotion involves personal

contact between company representatives and those who have a role in purchase

decisions (e.g., make the decision, such as consumers, or have an influence on a

decision, such as members of a company buying center). Often this occurs face-to-

face or via telephone, though newer technologies allow this to occur online via video

conferencing or text chat.


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Que41 Explain SWOT analysis?

Ans-41SWOT AnalysesStrength

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?

WeaknessesDo 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?

OpportunitiesCan we enter in new market?

Can we expand our product line?

Can we grow the Market size?THREATSAre 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?


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Que-42 What is consumer behaviour? Factors affectingConsumer behaviour?

Ans-42Consumer BehaviorConsumer behavior is the decision process and physical activity of an individualor group, when they are evaluating, acquiring, using or consuming goods andservices.

Characteristics Affecting Consumer Behavior

Cultural Factors

o CultureThe set of basic values, perceptions, wants and behaviors learned by a member of

society from family and other important institutions.o Sub-cultureA group of people with shared value systems based on common life experiencesand situations.

Social Classo GroupsTwo or more people who interact to accomplish individual or mutual goals.o FamilyA family is a group of two or more people related by blood, marriage, or adoptionliving together in a householdo Roles and Status

A role consists of the activities people are expected to perform according to thepersons around them e.g. daughter, husband, brand manager etc.

Personal Factors

o Age and life-cycle stageSingleMarried without childrenMarried with childrenMarried without dependent childrenSingle without dependent childrenSingle without childrenSingle with children

OccupationBlue color jobJunior ExecutiveSenior ExecutiveSmall Business EntrepreneurEntrepreneur of group of companies

Economic situationsSingle

Married without childrenMarried with children


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Married without dependent childrenSingle without dependent childrenSingle without childrenSingle with children

Life Style

A persons pattern of living as expressed in his or her activities,interests and opinions.

Personality and self-conceptA persons distinguishing psychological characteristics that leadsto relatively consistent and lasting responses to his or her ownenvironment.

Psychological factor

MotivationA need that is sufficiently pressing to direct the person to seek

satisfaction of the need.Perception

The process by which people select, organize, and interpretinformation to form a meaningful picture of the world.

LearningChanges in an individuals behavior arising from experience.

Belief and attitudesBeliefA descriptive thought that a person holds about something.AttitudesA persons consistently favorable orunfavorable evaluations, feelings, andexpressions toward an object or idea.


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Que-43 Market Segmentation and its variables?Ans-43 Market SegmentationDividing a market into distinct groups of buyers on the basis of needs,characteristics, 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 StageGender

Family Size

Family Life Cycle

Income segmentation

Occupation

Education

Religion

Cast

Generation

Nationality

PSYCHOGRAPHICS

Social Class

Lifestyle

Personality

BEHAVIORAL

Occasions

Benefits

User statusUsage rate

Loyalty status

Readiness Stage

Attitude toward product


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Que-44 What are New Product Development Strategies/Process?Ans-44 New Pr

Documents

Marketing Assignment on Short Notes.mba