SHORT NOTES ASSIGNMENT OF MARKETING MANAGEMENT

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

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

Q-1 What is Market and Marketing?

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

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

Q-2 What is Role of Marketing?

Ans-2 At the organizational level, marketing is a vital business function that is necessary in nearly all industries whether the organization operates as a for-profit or as a not-for-profit. For the for-profit organization, marketing is responsible for most tasks that bring revenue and, hopefully, profits to an organization. For the not-for-profit organization, marketing is responsible for attracting customers needed to support the not-for-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)

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

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

The Marketing Process

Himalaya Publishing House

Marketing Management Dr. K. Karunakaran

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

Q-5 Difference between Needs , Wants, Demands?

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

Needs:
Needs are the basic human requirements. People need food, air, water, clothing & shelter to survive. People also have needs for recreation, education and entertainment. Eg: Hunger food. According to Abraham 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: Mercedes Needs Pre-exists (cant be created

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

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

Que-7 Difference between Marketing and Selling?

Selling
1. Emphasis is on the product 2. Company Manufactures the product first 3. Management is sales volume oriented 4. Planning is short-run-oriented in terms of 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 costs 8. Different departments work as in a highly separate water tight compartments 9. Cost determines Price 10. Selling views customer as a last link in business

Marketing
1. Emphasis on consumer needs wants 2. Company first determines customers needs and wants and then decides out how to deliver a product to satisfy these wants 3. Management is profit oriented 4. Planning is long-run-oriented in 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 every sphere, on providing better costs value to the customer by adopting a superior technology 8. All departments of the business integrated manner, the sole purpose being generation of consumer satisfaction 9. Consumer determine price, price determines cost 10. Marketing views the customer last link in business as the very purpose of the business

Que-8 What are the different basis of classification of marketing? Ans-8 Different Types of Market
Before delving too deep into the study of marketing, it is worth pausing to consider the different types of market that exist. Markets can be analysed via the product itself, or endconsumer, or both. The most common distinction is between consumer and industrial markets.

1) Consumer Markets
Consumer 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. Consumer

durables 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, shoes Services (e.g. hairdressing, dentists, childcare)

2) Industrial Markets
Industrial 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, timber

b)Selling services to businesses

Examples include waste disposal, security, accounting & legal services

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 a state of felt deprivation. It is a part of the human makeup. Humans have many needs, viz., physical needs, social needs, spiritual needs and so on. Wants are the form taken by needs as they are shaped by the ones culture and personality. Wants are thus shaped by both the internal and external factors. Wants are described in terms of objects that will satisfy needs. For example, thirst is a need. To quench this thirst, a person may consider a number 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 the potential want-list. As people are exposed to more objects that arouse their interest and desire, marketers try to provide more choices, that is, more want-satisfying products. People have almost unlimited wants but limited resources. Therefore, they want to choose products that provide the most satisfaction for their money. When backed by buying power (ability), a want becomes a demand.

Products
A 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 a physical Object , the concept of product is not limited to physical objects. Marketers often use the Expressions goods and services to distinguish between physical products and intangible ones. These goods and services can represent cars, groceries, computers, places, persons and even ideas. Customers decide which entertainers to watch on television, which places to visit for a holiday, which ideas to adopt for their problems and so on. Thus the term product covers physical goods, services and a variety of other vehicles that can satisfy customers needs and wants. If at times the term product does not seem to be appropriate, other terms such as market offering, satisfier are used.]

Value and Satisfaction

When the customers have so many choices to choose from to satisfy a particular need, how do they choose from among these many products? They make their buying choices based on their perceptions of a products value. The guiding concept is customer value. A customer will estimate the capacity of each product to satisfy his need. He/She might rank the products from the most need-satisfying to the least need-satisfying. Of course, the ideal product is the one which gives all the benefits at zero cost, but no such product exists. Still, the customer will value each existing product according to how close it comes to his/her ideal product and end up choosing the product that gives the most benefit for the rupee the greatest value.

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 offering something in return. Thought it is only one of the many ways people can obtain a desired object, it allows a society to produce much more than it would with any alternative system. For an exchange to take place, several conditions must be satisfied. Of course, at least two parties must participate, and each must have something of value to the other. Each party also must want to deal with the other party and each must be free to accept or reject the others offer. Finally, each party must be able to communicate and deliver. These conditions simply make exchange possible. Whether the exchange actually takes place depends on the parties coming to 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 or accept the offer. In this sense, exchange creates value just as production creates value. It gives customers more consumption possibilities. A transaction is marketings unit of measurement. It consists of a trade of values between two parties. A monetary transaction involves trading goods and services in return for money whereas a barter transaction involves trading goods and services for other goods and services. Transaction marketing is part of the larger idea of relationship marketing. Marketing is shifting from trying to maximize the profit on each individual transaction to maximizing mutually beneficial relationships with consumers and other parties. This is based on the assumption that if good relationships are built, profitable transactions will simply follow.

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

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.

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 and time 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.

(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 a business 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.

(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 to declining, 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 an exciting 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.

(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.

(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 product from 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.

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 need a 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

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.

Components of MIS-:

Que-14 How do Marketers assist the customer during research and evaluation stage of their Purchase Decision Process? Ans-14 Information about the market
Analysis

of the market potential for existing products (e.g. market size, growth, changing sales trends) Forecasting future demand for existing products Asessing the potential for new products Study of market trends Analysis of competitor behaviour and performance Analysis of market shares

Information about Products

Likely customer acceptance (or rejection) of new products Comparison of existing products in the market (e.g. price, features, costs, distribution) Forecasting new uses for existing products Technologies that may threaten existing products New product development

Information about Pricing in the Market

Estimates

and testing of price elasticity Analysis of revenues, margins and profits Customer perceptions of just or fair pricing Competitor pricing strategies

Information about Promotion in the Market

Effectiveness

of advertising Effectiveness of sales force (personal selling) Extent and effectiveness of sales promotional activities Competitor promotional strategies

Que-15 What is Marketing Environment? Ans-15 Marketers need to be good at building relationships with customers, 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.

Que-16 What is Micro and Macro Environment? Ans-16

Micro Environment Factors that an organization has direct control over Macro Environment Factors on which organization has no control at all .

Micro Environment
These 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 to coordinate 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

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 the
company 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 trade off between integrating vs outsourcing of supplies assumes importance for a firm because this has implications on the cost as well as quality fronts. 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 Example Let 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 of compressors has been enjoying the major influence in the industry.

(3)Marketing Intermediaries: Also constitute an important component of the value

delivery 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 of marketing research firms, media firms, advertising agencies that promote the companies

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 provide value 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 market buys 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 target
markets 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 in
the 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.

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

(1)Demographic environment: Demography means the study of human population in

terms 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 the population needs to be studied, as they all are part of the demographic environment.

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 the

economic 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 their
production 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.

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 climate dependent 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.
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Que-17 what is Market Segmentation? Ans-17 Market Segmentation

The concept of market segmentation has helped marketing decision making since the evolution of marketing. The goal of market segmentation is to partition the total market for a product or service into smaller groups of customer segments based on their characteristics, their potential as customers for the specific product or service in question and their differential reactions to marketing programs. Because segmentation 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 he could more effectively target marketing efforts for the product or service 2. Segmentation helps the marketer avoid trial-and-error methods of strategy formulation by providing an understanding of these customers upon which he can tailor the strategy 3. In helping the marketer to address and satisfy customer needs more effectively, segmentation aids in the implementation of the marketing concept 4. On-going customer analysis and market segmentation provides important data on which long-range planning (for market growth or product development) can be based.

Que-18 Explain Market Targeting ? Ans-18 TARGETING THE MARKET

IDENTIFYING POTENTIAL MARKET SEGMENT : - A firm develops consumer profiles after 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.

Concentrated Marketing
A. 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 Positioning

Having chosen an approach for reaching the firms target segment, marketers must then decide how best to position the product in the market. The concept of positioning 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 it occupies a distinct and valued place in the target customers minds. In a world that is getting more and more homogenized, differentiation and positioning hold the key to marketing success! Ries and Jack Trout ,define positioning as: Positioning is your product as the customer thinks of it. Positioning is not what you do to your product, but what you do to the mind of your customer. Every product must have a positioning statement.

Que -20 Explain Prepatual Mapping?

Ans-20 Perceptual Mapping: when we define Perceptual mapping we say that it is basically a technique to represent what people think about products or services, 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 marketing
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-22 What is Differentiated and Undifferentiated Targeting? Ans-22

1. Undifferentiated Marketing
A firm may produce only one product or product line and offer it to all customers with a single marketing mix. Such a firm is said to practice undifferentiated marketing, also called mass marketing. It used to be much more common in the past than it is today. A common example is the case of Model T built by Henry Ford and sold for one price to everyone who wanted to buy. He agreed 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. A firm that attempts to satisfy everyone in the market with one standard product may suffer if competitors offer specialized units to smaller segments of the total market and better satisfy individual segments.

2. Differentiated Marketing
Firms that promote numerous products with different marketing mixes designed 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 marketing one product with a single marketing program, the firm markets a number of products designed to appeal to individual parts of the total market. By providing increased satisfaction for each of many target markets, a company can produce more sales by following a differentiated marketing approach. In general, it also raises production, inventory and promotional costs. Despite higher marketing costs, a company may be forced to practice differentiated marketing in order to remain competitive.

Que-23 What is Concentrated Targeting? Ans-23 Concentrated Marketing

Rather than trying to market its products separately to several segments, a firm may opt for a concentrated marketing approach. With concentrated marketing (also known as niche marketing), a firm focuses its efforts on profitably satisfying only one market segment. It may be a small segment, but a profitable segment. This approach can appeal to a small firm that lacks the financial resources of its competitors and to a company that offers highly specialized good and services. Along with its benefits, concentrated marketing has its 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 in severe financial problems. Sales may also drop if new competitors appeal successfully to the same segment. Niche marketing leaves the fortunes of a firm to depend on one small target segment.

Que-24 What are the elements of Marketing Mix or 4ps of Marketing ? Ans-24
Elements of the Marketing Mix Product Sub-Elements
Product design Product positioning Product name and branding Packaging and labeling Breadth and depth of product line Level and type of customer service Product warranty New product development process Product life cycle strategies Manufacturer, wholesaler and retailer selling prices Terms and conditions Bidding tactics Discount policies New product pricing (Skim Vs. Penetrating pricing) Direct Vs. Indirect channels Channel length Channel breadth (exclusive, selective or intensive) Franchising policies Policies to ensure channel coordination and control

Price

Place (distribution channels)

Advertising Promotion Sales force policies (marketing communications) Direct marketing (mail, catalog)

Public relations Price promotions for the consumers and the channel Trade shows and special event

Que-25 What are 3Ps of Marketing? Ans-25 3 Ps in Services Sub-Elements Marketing

Process Flow of activities Service script (number of steps) Customer involvement Facility design Service ambience Equipment Signage Employee dress Point-of-sale displays Other tangibles (e.g. business cards) Employees _ Recruiting _ Training _ Motivation _ Rewards _ Teamwork Customers _ Education --Training

Physical evidence

People

Que-26 What is Brand? Ans-26 A name, term, sign, symbol, or design used to identify the products of one
firm and to differentiate them from competitive offerings. Something used to show customers 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 the firms offerings from those of its competitors.

Que-27 What is product Packaging? Ans-27 PACKAGING

Earlier, packaging was considered a major expense in marketing. For some toiletries, packaging costs actually exceeded the costs of contents. Today, it is however, fully recognized that packaging helps in branding and promoting brand loyalty. 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 PACKAGING
1) It helps increase sales 2) It adds to the use of a product 3) It helps promote a product 4) It contributes to the safety of a product 5) It helps in storage 6) It helps in product differentiation

QUALITIES OF GOOD PACKAGING

_ Attractive appearance _ Convenient for storage and display _ Shield against damage or spoiling _ Product description shown on the package

FUNCTION OF PACKAGING ESPECIALLY FOR CONSUMER GOODS

i. Protection and presentation are the basic functions of a packaging ii. Modern marketing methods demand that, package be convenient to handle transport requirements. iii. A package must be made to consistent and rigid quality standards. The consumer demands uniformity each time he purchases a product. iv. Transport economics v. Every package must be recognizable and vi. Every package must have eye appeal

Que-28 What is Product Labelling? Ans-28 Labeling

Labeling is regarded as part of marketing because packaging decision making involves the consideration of the labeling requirements. In international trade, many countries insist that labeling should be done in the absence of such a statutory requirement. Statutory obligations are important aspects of labeling. Many countries have laid down labeling requirements in respect of a number for commodities. According to the regulations labeling of food items should disclose information about a number of aspects like date of manufacturing, expiry date or optimum storage period for good which 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 imprinted with 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 single country, 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 into
four 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 certain assumptions. It presumes that firms will behave rationally. Theorists expect that rational behaviour will result in an effort to maximize gains and minimize losses. Profits are a function of revenue and expenses. Profits = Revenue Expenses Revenue is determined by the products selling price and number of units sold: Total revenue = Price Quantity sold

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

marketers recognition of the role of price in creating an overall image for the firm and its goods and services.

Que-30 Nature and types of Marketing Channels ? Ans-30 Marketing Channels

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

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 channels of distribution that are designed to move the product (goods or services) from the hands of the company to the hands of the customer. 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 to help with the distribution of their 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 a companys 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 retail stores) 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.

Que-32 what is Retailing and Wholesaling ? Ans-32 WHOLESALING

This includes all the activities involved in selling goods and services to those who buy for resale purpose. In the case of wholesaling this excludes manufacturers or producers who are involved directly in the production of the goods. They are the marketing intermediaries that buy from one source and sell it to another. The main function of a wholesaler is facilitating the transportation of the product and at times in the transfer of the titles. The intermediaries performing the wholesaling function is predominantly divided into two types namely merchants and agents. The difference between 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 the marketing 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.

Que-33 Different types of Intermediaries ? Ans-33 Types of Channel Intermediaries

There 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 They break 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 their product 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 the physical distances involved. They are difficult to motivate. 3. Channel Intermediaries 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 travel agents. 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. 4. Channel Intermediaries Internet The Internet has a geographically disperse market. The main benefit of the Internet is that niche products reach a wider audience e.g. Scottish Salmon direct from an Inverness fishery. There are low barriers low barriers to entry as set up costs are low.

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

Que-35 What is Sales Promotion ? Ans-35 Sales promotion - Short-term incentives to encourage the purchase or sale of
a product or service An activity designed to boost the sales of a product or service. It may include an advertising campaign, increased PR activity, a free-sample campaign, offering free gifts or trading stamps, arranging demonstrations or exhibitions, setting up competitions with attractive prizes, temporary price reductions, door-to-door calling, telemarketing, personal letters on other methods.

Que-36 WHAT ARE METHODS FOR SALES PROMOTION?

Ans-36

Sales Promotion Methods. Most sales promotional methods can be classified as

promotion techniques either for consumer sales or for trade sales. 1. A consumer sales promotion method attracts consumers to particular retail stores and motivates them to purchase certain new or established products. 2. A trade sales promotion method encourages wholesalers and retailers to stock and actively promote 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 at the 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. A premium 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.

Que-37 What are Public Relations? Ans-37 Public relations

Building 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 marketing Direct connections with carefully targeted individual
consumers 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.

Que-39 Describe Marketing Communication Process? Ans-39 Communication Process

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

Message Source The source of communication is the party intending to convey information to another party. 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 Receiver The receiver of communication is the intended target of a message 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 Encode Marketers 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 Feedback Encouraging 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 Noise In many promotional situations the marketer has little control over interference with their message. However, there are a few instances where the marketer can proactively lower the noise level. For instance, salespeople can be

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 Audience Targeting the right message receiver will go a long way to improving 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 while in the next section a comparison of each method based on the characteristics of promotion is presented.

Advertising Involves non-personal, mostly paid promotions often using mass media outlets 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 Promotion Involves 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 act while the incentive is still valid. Public Relations Also referred to as publicity, this type of promotion uses thirdparty 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 Selling As 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-toface or via telephone, though newer technologies allow this to occur online via video conferencing or text chat.

Que41 Explain SWOT analysis? Ans-41SWOT Analyses

Strength
Do we have a unique competitive advantage? Do we have sufficient financial resources? Can we do something better than our competitors? Do buyers think well of us? Are we known as the market leader ? Do we have most modern technologies? Can we produce at market at lower costs? Does our management team have a good track record?

Weaknesses
Do we have lack of a clear strategic direction? Are our facilities obsolete? Is our profitability lesser than others? Do we have lack of management depth and talent? Are we missing any key skills? Do we have internal operating problems? We have short of cash to fund current and future business efforts Do we have a weak image in the market?

Opportunities
Can we enter in new market? Can we expand our product line? Can we grow the Market size?

THREATS
Are we likely to get new competitors? Other products that may be substituted for our product? Will new government policies hold up our business? Are we defenseless to economic downturns? Will buyers tastes and preferences change? Will demographic shifts hurt us?

Que-42 What is consumer behaviour? Factors affecting Consumer behaviour? Ans-42Consumer Behavior
Consumer behavior is the decision process and physical activity of an individual or group, when they are evaluating, acquiring, using or consuming goods and services.

Characteristics Affecting Consumer Behavior

Cultural Factors o Culture The set of basic values, perceptions, wants and behaviors learned by a member of society from family and other important institutions. o Sub-culture A group of people with shared value systems based on common life experiences and situations. Social Class o Groups Two or more people who interact to accomplish individual or mutual goals. o Family A family is a group of two or more people related by blood, marriage, or adoption living together in a household o Roles and Status A role consists of the activities people are expected to perform according to the persons around them e.g. daughter, husband, brand manager etc. Personal Factors o Age and life-cycle stage Single Married without children Married with children Married without dependent children Single without dependent children Single without children Single with children Occupation Blue color job Junior Executive Senior Executive Small Business Entrepreneur Entrepreneur of group of companies Economic situations Single Married without children Married with children

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

Que-43 Market Segmentation and its variables? Ans-43 Market Segmentation

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

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

Que-45 Explain Promotion Mix? Ans-45 Promotion Mix

A. Advertising Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. B. Personal Selling It is personal presentation by the firms sales force for the purpose of making sales and building customer relationship. C. Sales Promotion It is short-term incentives, to encourage the purchase or sale of a product or service. D. Public Relations Building good relations with the companys various publics and corporate clients by publicity and interacting in favorable moods and media, as well as handling unfavorable rumors, stories and events are also the part of public relation. E. Direct Marketing Direct communications with targeted individual consumer to obtain an immediate response and development of long-term relationship.

Que-46 Explain Product Mix Pricing Strategies? Ans-46 Product Mix Pricing Strategies
A. Product Line Pricing Setting the price steps between various products in a product line, based on differences of different products cost, features, and competitors prices. B. Optional Product Pricing Optional product pricing is the pricing of accessory products along with a main product or price for extra value added with the main product. C. Captive Product Pricing Setting a price or products that must be used along with a main product, such as blades for a razor and film for a camera. D. By Product Pricing Setting a price for by products in order to make the main products price more competitive. E. Product Bundle Pricing In this approach we create package rates by combining several products and offering the bundle at a reduced price.

Que-47 Explain Factors and Approaches of Pricing? Ans-47 Factors Affecting Pricing Decision
A. Internal Factors a. Marketing Objective b. Marketing Mix Strategy c. Cost d. Organizational Consideration B. External Factors a. The Market b. Demand c. Competition d. Environment

General Pricing Approaches

A. Cost Based Price a. Cost-plus pricing Adding a standard markup to the cost of the product. b. Breakeven pricing In this pricing approach we tried to achieve our break even in our desired time period. B. Value Based Pricing Setting price based on buyers perceptions of value rather than on the sellers cost. C. Competition Based Pricing Setting prices based on the prices that competitors charge for similar products.

Que-48 Explain Price Adjustment Strategies? Ans-48 Price Adjustment Strategies

A. Discount and Allowance Pricing a. Cash Discount Cash discount is for those customers who pay their bills punctually or in advance. b. Quantity discount Quantity discount is reduction in price for those customers who purchases in bulk quantity. c. Functional discount This discount is offered by the seller for the member of the trade channel who performs certain function for seller, such as selling, storing, and record keeping. d. Seasonal discount The seller offers this discount, for those buyers, who purchase merchandise or services out of season. e. Allowance Allowance is promotional Money paid by the manufacturers to the retailers against his performance or as per agreement.

B. Segmented Pricing Selling a product or service at two or more prices, where the difference in prices is based on the differences in the environment of the segment. C. Psychological Pricing In this approach price is based on the perceptions of the consumer for the product. D. Reference Prices Price that buyers carry in their minds and refer to when they look at a given product. E. Promotional Pricing Temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales. F. Geographical Pricing a. FOB Origin Pricing A geographical pricing strategy in which goods are placed free on board a carrier and the customer pays the actual freight from the factory to the destination. b. Uniform-delivered pricing A geographical pricing strategy, in which the company charges the same price plus freight to all customers, regardless of their location. c. Zone Pricing A geographical pricing strategy, in which the company divide their all clients location in different zones as per distance with the production house and fix charges for each zone. All customers within a zone pay the same price. The more distance of zone causes higher the price d. Basing Point Pricing A geographical pricing strategy in which the seller designates some city as a basing point and charges all customers the freight cost from that city to the customer location, regardless of the city far from the production house. e. Freight-absorption Pricing A geographical pricing strategy in which the company absorbs all or part of the actual freight charges in order to get the business.

Que-49 Concept of Direct Marketing? Ans-49 Direct Marketing

Direct communications with targeted individual consumers to achieve an immediate response and develop long lasting customer relationships. This communications is carrying out through E-mail, Direct mail, Telephone, Catalogues, Fax, etc. Forms Of Direct Marketing a) Face to Face Marketing b) Telemarketing c) Direct Mail Marketing d) Catalog marketing e) Direct Response Television Marketing f) Kiosk Marketing

Que-50 What are Promotion tools? Ans-50 Sales Promotion Tools

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

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