Marketing management

Section A
1. Marketing are activities of a company associated with buying and selling a
product or service.
Marketing:
Identifies appropriate prospects
Selling is: Proactive seeking of prospects

. Product
.

Price

Promotion

Place

2. One of the four major elements of the marketing mix is price. Pricing is an
important strategic issue because it is related to product positioning. Furthermore,
pricing affects other marketing mix elements such as product features, channel
decisions, and promotion.
3. Consumer behavior is the study of how people make decisions about what they
buy, want, need, or act in regards to a product, service, or company.
When influenced by the personal-variable model, consumers make decisions
based on internal factors. These internal factors may include personal opinions,
belief systems, values, traditions, goals, or any other internal motivator.
4. The situation is analyzed to identify opportunities a thorough analysis of the
situation in which the firm finds itself serves as the basis for identifying
opportunities to satisfy unfulfilled customer needs. In addition to identifying the
customer needs, the firm must understand its own capabilities and the environment
in which it is operating.
5.
1. The marketing concept is the philosophy that firms should analyze the needs of
their customers and then make decisions to satisfy those needs, better than the
competition.
2. BUYING MOTIVES MEANING AND DEFINITION A buying motive is the reason why
the customer purchases the goods. So, motive refers to thought, urge, feeling,
emotion and drive which make the buyer to react in the form of a decision.
Motivation explains the behavior of why they are going to buy the goods.

3. Markup can be expressed as a fixed amount or as a percentage of the

total cost or selling price.
Section B
1. Middlemen or the channels of distribution bring the manufacturer and the user
together in an economic manner and provide distribution efficiency to the
manufacture. The middlemen perform the following important functions:
1. Minimize the number of contacts needed for reaching consumers In most cases, it
is impractical for a manufacturing firm to sell its entire production directly to the
consumers.
2. Sales Promotion is an important component of the marketing communications
mix. It is essentially a direct and immediate inducement. It adds extra value to the
product and hence prompts the dealer/consumer to buy the product.
3. The market for any product is normally made up of several segments. A
market after all is the aggregate of consumers of a given product. And, consumers,
who make a market, are seldom one homogeneous lot. They vary in their
characteristics and buying behaviour. Thus, it is natural that many differing
segments occur within a market.
Case Study
Good Night
1. The common Strategy followed by the company is very aggressive and
appealing. The brand
name of chosen by the company reflects the product benefit. The product name
good night
verbalizes the reason to buy the product to the consumer. This name not only tells
the benefits of
product, but also this name is commonly practice in most Indian language. The word
good night is
commonly spoken in all Indian family so its mass appealing. The company chooses
the daily
newspaper to show their ads. The ads were printed on newspaper like The Tomes of
India, Malayalam
Manorama Sunday Midday etc. Which were biggest and best selling newspaper in
India In this way
their ads reach to the target audience very rapidly and quickly. So we can conclude
that there common
strategy was very aggressive and mass appealing.

2. As new international competition has come into the market, I would like
to give some
suggestion to the company in order to boost sales and increase the profit and
market share. Following
are the few suggestion: 1. In order to capture larger market share, the company should incase ads
promotion on T.V, Radio
and Newspapers etc.

2. Nation wide promotion of the product should be done in order to get larger target
audience.
3. Rural marketing should be done because now many if the villages get the
electricity.
4. As marketing is a creative field, so company should keep changing their ads and
bring more
creative touch in ads. This will keep the consumer interest alive.
5. Company should offer more discount scheme to the customer like replacement
of the old/nonworking EMD machine.
Section C
1. D
2. B
3. D
4. C
5. A
6. A
7. A
8. A
9. B
10. B
11. Yes
12. No

13. No
14. No
15. Yes
16. No
17. Yes
18. Yes
19. No
20. No
21.

Problem Recognition (Need Recognition)

Awareness
Comprehension (Evaluation)
Attitude
Legitimization
Trial
Adoption
Post-Purchase Behavior

22. Marketing refers to understanding the needs of the consumer and delivering
them. Marketing
views the entire business as consisting of a tightly integrated effort to discover,
create, arouse and
satisfy customer needs.
Selling merely concerns itself with the tricks and techniques of getting the
customers to
exchange their cash for the companys products; it does not bother about the value
satisfaction that the
exchange is all about.

23. Generating awareness

Reminding buyers to buy

 Changing attitudes about the use of the product form

Changing perceptions about the importance of brand attributes
Changing beliefs about brands
Reinforcing attitudes
Building corporate and product-line image
Obtaining a direct response

24. Consumers:
Innovators
Early adopters
Early majority
Late majority
Laggards
Consumer durables:
Television
Refrigerator
Air conditioner
Washing machine
VCD Player
Industrial products:
Petrol
Diesel
Kerosene
Explosives
Certain industrial chemicals

25. A wholesaler buys the product in large quantities, and resells the goods in
sizable lots to other

intermediaries down the line, such as semi-wholesalers and retailers. Normally a

wholesaler does not
sell directly to consumers, the exception being institutional buyers who prefer their
requirements from
wholesalers rather than retailers. In fact, the distinguishing feature of wholesalers is
that they do not
sell to the ultimate consumers for personal consumption. Even when they sell to
institutional buyers
who are the ultimate consumers, the sale is not for personal consumption of an
individual/household
consumer.
Wholesalers generally specialize: some specialize by type of product, some by
industry and some by
markets. The rationale for their existence is their cost-effective operation in buying
goods in large
quantities and reselling them to other intermediaries in smaller, yet sizable lots.
Wholesalers add value by performing a number of vital marketing functions. Stock
holding and subdistribution are the main functions of the wholesaler. They also perform functions
like promotion,
financing, and collection of accounts receivables and provision of market
feedback. They serve
principals as well as retailers under them. In some cases, they also assume a part of
the risk associated
with product failures, price changes and bad debts.
Wholesalers basically belong to two types: agent wholesalers and merchant
wholesalers. Usually
merchant wholesalers participate in all the flows that characterize the distribution
process while agent
wholesalers do so only in some of the flows

26. Promoting and Selling the Product, Defining product identity, Meeting customer
needs, Ensuring safe use and Protecting the product.
27.

27. Surf, Ponds, Lux, Taj Mahal tea, Colgate

28. Generating new product idea
Idea screening
Concept testing
Business/market analysis
Actual product development
Market test
Commercialization

29. 1: - Faulty product Idea.

2: - Distribution Problem.
3: - Unrealistic pricing.
4: - Week promotional activity.
5: - Poor quality Product.
6: - Strong designed strategy of the competitor

30. Market pioneering stage

Market growth stage
Market maturity stage
Market decline stage
31. Product Diversification: Product Diversification means increasing the product
line length.
Most firms start with just one product line and one or two products in that line. Over
the years, the line
grows, as the firm keeps adding more and more products/brands to the line to
capture new marketing
opportunities. More product lines also enter the scene, as the firm decides to
expand to more new
businesses. It is a direct outcome of the long-term corporate growth strategy of the
firm handled at the

corporate level. Line stretching is a measure firms undertake frequently in product

management. The
aim is to enter a new price slot and a new market segment, which is not covered by
the existing offers
of the firm.
Product Differentiation: The differentiation route to strategy revolves around aspects
other than
price. It works on the principle that a firm can make its own offer distinctive from all
competing offers
and win through the distinctiveness. And, a firm adopting such route can price its
product on the
perceived value of the attributes of the offer and not necessarily on competitionparity basis. The
differentiation route is a more dynamic and powerful route in competitive strategy.
Most business
battles are fought on the strength of differentiation rather than price. The major
temptation as well as
benefit in differentiation strategy is that it allows a firm to move away from the
disadvantages of a
wholly price-based fight. In other words, differentiation allows a firm the flexibility
for fighting on the
non-price front, on the other strength of the uniqueness and specialty of its offer.
Differentiation,
therefore, is a crucial option for a firm in its search for a rewarding competitive
strategy.

32. SELLING & MARKETING

Selling starts with the seller, and is
preoccupied all the time with the needs of
the seller.
Marketing starts with the buyer and focuses
constantly on the needs of the buyer.
Seller is the center of the business world. Buyer is the center of the business world.
Emphasis is on the saleable surplus

available with the concern.

Emphasis is on the identification of the
market opportunity.
Seeks to quickly convert product into cash. Seeks to convert customers needs
into
product.
Concerns itself with the trick and
techniques of getting the customer to part
with their cash for the product available
with the salesman.
Emphasizes on fulfilling the needs of the
customer.
View business as a good producing
process.
View business as a customer satisfaction
process.
Overemphasizes the exchange aspect
without caring for the values satisfaction
inherent in the exchange.
Concerns itself primarily and truly with the
value satisfaction that should flow to the
customer from the exchange.
Sellers preference dominates the
formulation of the Marketing Mix.
Buyer determines the shape Marketing Mix
should take.
Emphasis is on somehow selling; there is
no coordination between the different
functions of the total marketing task.
Emphasis is on the integrated marketing; an

integrated strategy covering the product,

promotion, pricing, and distribution.
The firm makes the product first and then
figures out how to sell it and make profit.
The firm makes total product offering that
will match and satisfy the identified needs
of the customer.

33. Skimming Price: In skimming pricing, the new product is priced high and the
cream of the
market is skimmed by concentrating on those segments that are not price sensitive.
Such high price
will fetch the firm substantial initial incomes, which it can plough in for further
market development
and promotion. Through this method, the firm also recovers a substantial potion of
its development
cost. Later on, the firm may bring down the prices, when it enters mass markets,
which are more pricesensitive. Skimming pricing, however, cannot be employed if the product cannot
command the
patronage of an affluent, non-price sensitive, market-segment.
Penetration Price: The skimming strategy cannot suit all new product contexts.
When the new
product is likely to be highly price sensitive and when there is no elite market for it,
penetration pricing
will be the option. As the very name implies, the intention in this strategy is to
penetrate a broad

market through low prices. The income is generated by sales spread over large
markets; the large
volumes facilitate substantial economies in unit cost of production and marketing;
and the cycle can
continue. The strategy helps to establish the product in the market.

34. Individual Consumer: Individual consumer buys things for his own personal and
family
consumption.
Industrial Consumer: Industrial buyer is a commercial buyer who buys things for
manufacturing
other products, or for reselling, or for use in the running of his enterprise.

35. Horizontal Marketing

Definition: When two companies producing different products jointly
market their products.
Sometimes horizontal marketing is referred to as symbiotic marketing.
Vertical Marketing
Vertical marketing focuses on developing solutions to user problems within specific
industries. In
contrast, horizontal marketing provides generic one-size-fits-all offerings.

36. Packaging: The package is another important component of total

product personality,
especially in consumer products. The package performs two essential roles: (i)
Giving protection to the
product, (ii) Adding to its aesthetic and sales appeal.
Traditionally, packaging was intended to protect the product to prevent
deterioration enroute, and to
facilitate handling at the various points of distribution. In later years, packaging also
became a major
tool in the promotion of the product. The material of the package, the color, the
shape and size of the

package, its finish, the labeling on it, the possibilities of reuse, etc., came to be
utilized in building the
total sales appeal of the product. The power off good packaging in promoting onthe-spot purchases is
found to be very substantial

37. Individual Brand: In Individual Branding each product of the company

is given an
independent brand name.
Criteria for selecting a brand name:
INDIVIDUAL BRANDING
1. The brand name selected should be easy to pronounce.
2. It should be easy to read and understand.
3. Appropriate for the product: Most companies select the brand name, which
communicate the
functions\some key attributes of the product. To cite a few examples,
When Wipro Systems offered a software program on astrology, the name
chosen was Jyotishi.
Shinex was the name chosen for an instant polish.
The paint for the wooden furniture was given the name as Touchwood.
The first portable music player was given the name as Walkman.

4.
The brand name so allotted to the product should be easy to remember so
that it remains in the
mind of the customer while making the purchase.
5.
The brand name selected should be most descriptive in nature. Many a
times the manufacturer
tries to choose a brand name that communicate the specialty of the product.
E.g. GMs Opel, Fords Ikon, Suzuki Zen are the names to communicate the
specialty of the
respective brands.
The name TAJ given to the Hotel chain of Indian Hotels is an attempt to
recapture and reflect

the Mughal Splendor.

Family Brand: When a group of products are given the same brand name, it
becomes a case of family
brand. Family brand does not mean that entire product mix of the company should
go under a single
brand name. A company may resort to different branding approaches for different
product lines.
Criteria for selecting a brand name:
FAMILY BRAND
1. Different products of the companies marketed under one brand name are given a
family or
umbrella brand.
2. This sort of brand does not mean the entire product mix of the company should
go under the
single brand name.
3. A company may approach to different branding approach to different product
lines. When a
group of products are given the same brand name, it becomes a case of Family
brand or
Umbrella brand.
4. E.g. AMUL it is an umbrella / family brand name for one line of product for the
company.
5. DHARA is an umbrella brand for the seven types of oil marketed by the a
company: Dhara
Mustard oil, Dhara groundnut oil, Dhara sunflower oil etc.

38.

Personal selling is unique as it is a face-to-face transaction between a

salesman and a prospective customer. Evidently, a well-trained and competitive

spirited salesman can
be an effective communication medium. His knowledge about the product, the
degree of his familiarity
with the customer, whether he is handling a new customer or an established
customer, the degree of his

involvement in the company he is representing, the level of his motivation and his
own convictions
about the quality and performance standards of the product will be the determining
factors in his role
as a communicator.

39. The distributor becomes the manufacture's direct point of contact for
prospective buyers of certain products. However, distributors rarely sell a
manufacture's goods directly to consumers. Wholesalerepresentatives and retailers
generally finddistributors to buy products for resale.

40. Full Cost Pricing: Absorption cost pricing or full cost pricing rests on the estimate
unit cost of
the product at the normal level of production and sales. The method uses standard
costing techniques
and works out the variable and fixed costs involved in manufacturing, selling and
administering the
product. By adding the cost of these three operations, we get the total cost. Adding
the required margin
towards profit to such total costs arrives at the selling price of the product. This
method is also known
as full cost pricing since it envisages the realization of full costs from each unit sold.
Marginal Cost Pricing: Marginal cost pricing aims at maximizing the contribution
towards fixed
costs. Marginal costs include all the direct variable costs of the product. In marginal
cost pricing, these
direct variable costs are fully realized. In addition, a portion of the fixed costs is also
realized. The
main difference between absorption cost pricing and marginal cost pricing is that
the latter gives the
flexibility not to cover a portion of the fixed costs depending on the market
situation. It also gives the
flexibility to recover a larger share of the fixed costs from certain customers, or a
certain segment of
the business and a smaller share from the others.