MARKETING MODULE

Define marketing.
Ans: 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.
It is also defined as 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.
So, marketing is a philosophy (e.g. customer as the foundation of an
organization’s existence), and a function (process & activity for identifying &
satisfying customer’s needs & wants).

Mention the differences between marketing & selling.

Ans. Marketing and sales are both activities aimed at increasing revenue.
They are so closely intertwined that people often don’t realize the difference
between the two. Indeed, in small organizations, the same people typically
perform both sales and marketing tasks. Nevertheless, marketing is different
from sales and as the organization grows, the roles and responsibilities
become more specialized.
Sales vs. Marketing Activities
Marketing activities include consumer research (to identify the needs of the
customers), product development (designing innovative products to meet
existing or latent needs), advertising the products to raise awareness and
build the brand. The typical goal of marketing is to generate interest in
the product and create leads or prospects.
On the other hand, sales activities are focused on converting prospects
to actual paying customers. Sales involve direct interaction with the
prospects to persuade them to purchase the product. Marketing thus tends
to focus on the general population (or, in any case, a large set of people)
whereas sales tend to focus on individuals or a small group of prospects.
Orientation Focus Means Ends
Selling Product Aggressive selling and sales Maximize profits
promotion with emphasis on price through sales
variations to close the sale. “I must maximization
somehow hook the customer”
Marketing Customer Integrated marketing plan Maximize profits
encompassing product, price, through
promotion, and distribution, backed increased
up by adequate environmental consumer
scanning, consumer research, and satisfaction, and
opportunity analysis with emphasis hence, raise
on service. “what can we do that will market share.
make us, in the customer’s eyes, better
than and superior to our competitors’
Differentiate between goods and services.
Ans: Difference between goods and services
GOODS SERVICES
Goods are tangible in nature i.e. Services are intangible in nature i.e.
they can be seen and touched. they can neither be seen nor be
touched.
There is a time gap between There is no time gap between the
production and consumption of production and consumption of
goods as they are produced first and services that is why they are
consumed later. produced and consumed
simultaneously.
They can be stored and utilized Services cannot be stored.
when required.
Transfer of ownership does take Transfer of ownership is not
place. possible.
Goods are homogeneous Services are heterogeneous.

Discuss the evolution of the marketing concept / contrast the 4 eras in

the history of marketing.
Ans: The marketing concept was first defined as “a way of thinking; a
management philosophy, guiding all the efforts of the organization, not just
its marketing activities". The concept represents business thinking, and
started developing since 1850s. Businesses have since adopted production
philosophy, product philosophy, selling philosophy, and marketing
philosophy.
Production philosophy - The production philosophy is premised on the
assumption that consumers will favour products that are available and
highly affordable. This required that businesses’ concentration were directed
toward improvement of production process to ensure availability, and
reducing production costs to enable lower product price.
Product philosophy - The product philosophy was the dominant marketing
philosophy at the dawn of 1900s and continued to the 1930s. The product
orientation assumes that consumers will prefer product based on its quality,
performance and innovative features. This means that the company knows
its product better than anyone or any organization. Therefore,
manufacturers produced what they thought were best, and gave little
emphasis on what consumers wanted.
Selling philosophy - The selling philosophy was the concept of businesses
that proceeded the product era, and has the shortest period of dominance
compared to the two preceding philosophies. It began to be dominant
around 1930and stayed in widespread use until about 1950. The emphasis
of selling philosophy was to create a department that would solely be
responsible for the sale of the company’s product; while the rest of the
company could be left to concentrate on producing the goods.
Marketing Philosophy - The marketing philosophy started to dominate
business orientation during the 1950s, and continues until the twenty first
century. This concept assumes that the starting point for any marketing
process is the customer needs and wants, and no longer the aggressive
selling. The key assumption underlying the marketing philosophy is that “a
market should make what it can sell, instead of trying to sell what it has
made”. The marketing concept focuses on the identified needs and wants of
the buyer rather than the needs of the seller and the product.

Explain MARKETING MIX.

Ans. Marketing Mix is a business tool used in marketing and is associated
with the 4Ps. Marketing mix plays the main role in marketing strategy
formulation and execution. Marketing mix in case of goods, can be viewed as
a combination of –
• The product,
• The price,
• The methods to promote it (Promotion),
• The ways to make the product available to the customer (Place).
Product: A product is seen as an item that satisfies what a consumer
demands. It is a tangible good or an intangible service. Marketers must do a
careful research on how long the life cycle of the product they are marketing
is likely to be and focus their attention on different challenges that arise as
the product moves. Marketers should consider how to position the product,
and how to exploit the brand. Marketer must also consider product
development strategies. Key elements of Product are –
-Product design, features, brand name, models, style
-Product quality
-Warranty
-Package: design, material, size, appearance, labelling
-Augmented product: pre-sale & after-sale, service standards, service
charges
Place: It refers to providing the product at a place which is convenient for
consumers to access. Various strategies such as intensive distribution,
selective distribution, exclusive distribution and franchising can be used by
the marketer to complement the other aspects of the marketing mix. The
elements are –
-Channels of distribution: channel design, types of intermediaries, location
of outlets, channel remuneration, dealer-principal relation, etc.
-Physical distribution: transportation, warehousing, inventory levels etc.
Price: The price is very important as it determines the company’s profit. It is
the amount a customer pays for the product. Adjusting the price has a
profound impact on the marketing strategy, and depending on the price
elasticity of the product, it affects the demand and sales. When setting a
price, the marketer must be aware of the customer perceived value of the
product. Elements are –
-Pricing policies, margins, discounts & rebates
-Terms of delivery, payments terms, credit terms & installment purchase
facilities, resale price
Promotion: Promotion includes the methods of communication that a
marketer may use to provide information to different parties about the
product. It comprises of elements such as –
-Personal selling: selling expertise, size of sales force, quality of sales force
etc.
-Advertising: media mix, vehicles, programs etc.
-Sales promotion: gifts, price-offs, coupons, contests, prizes etc.

Explain 4P- 4C Framework.

Ans: The marketing mix describes the combination of the four inputs which
constitutes the core of the company’s marketing system- the product, the
price structure, the promotional activities and the distribution system. The
first author who used the marketing-mix term was McCarthy in the year
[Link] the 1990's, the concept of four C's was introduced as a more
customer-driven replacement of four P's.
Throughout the years, many questions were raised regarding the validity of
the marketing-mix in the 21st century. Different authors launched attacks
on this model because of its lack of strategic elements and internal
orientation which led to developing alternative frameworks such as or Boom
and Bitner’s 7P's framework, more suitable for theservice marketing area.
One of the most influential critiques of the marketing mix is given by
Lauterborn (1990), who claims that the elements of the marketing mix
should also be seen from consumer's point of view. Therefore, Lauterborn
came up with the "Four C's" - customer value, cost, convenience and
communication, a model that is equivalent to the traditional 4Ps, but viewed
from customer perspective.
Product is replaced by Customer value: One has to identify consumers’
wants and needs and then attract consumers one by one with something
each one wants. By providing "the right content in the right format to the
right person at the right time", companies are trying to provide solutions to
their customers, rather than selling them a single product. With this, the
companies create value - "the net worth to customers from buying and using
seller's product".
Pricing is replaced by cost: However, price is just one of the costs that
need to be bear in mind, when a customer wants to buy something. During
the purchasing process, many different types of costs such as those for
searching the product, transportation, usage costs can occur.
Place is replaced by the convenience function The Internet provides an
opportunity for customers to purchase their products from their homes.
Moreover, it eliminates regional and local protections and allows consumers
to buy from anyone in any region of the world.
Promotions feature is replaced by communication: Traditionally, the
process of communication was consisted of advertising, sales promotion,
direct marketing, public relations and personal selling. This traditional
model was founded on the belief that marketer has the entire control of the
information flow from the company through the media, to the consumers.
Furthermore, these mass media-based tools create one-way communication
that is based on informing, telling and educating audiences with an ultimate
goal to sell the product.
Explain Marketing MYOPIA.
Ans: This concept was first coined by Theordore Levitt. ‘Myopia’ means short
sightedness and the term implies “short sighted and inward looking
approaches to marketing that focuses on the needs of firm instead of
defining the firm and its products in terms of the customer’s needs and
wants.”
Marketing Myopic Companies sometimes are so much in love with their
products or services that they design their process in and around for better
performance of their product and lose sight of consumer needs, especially
latent needs, which cannot be satisfied by the product in focus and hence
we do not find path breaking innovations from these myopic companies.
Their innovations are limited to processes and services around their current
products only.
Causes of marketing myopia
1. Narrow minded approach to marketing situation where only short ranged
goals are considered.
2. Product oriented rather than customer oriented.
3. Lacking innovation.
4. Not considering the changing customer lifestyle in digital age.
5. Believe that there are no competitive substitutes.
Examples: Railroads, Kodak film company.
Reasons why marketing myopia should be avoided:
1. Diminishing relationships with customers.
2. Resulting in the poorer advertising messages and sales processes.
3. It’s short sightedness affects the mission and vision of the company.
4. Uncertain future.
How to prevent myopia:1. Customer orientation; 2. Focus on marketing; 3.
Looking for future opportunities; 4. Retention of existing customers.

Explain product mix.

Ans. Product mix, also known as product assortment, refers to the total
number of product categories that a company offers to its customers. For
example, a small company may sell multiple lines of products. Sometimes,
these product lines are fairly similar, such as dish washing liquid and bar
soap, which are used for cleaning and use similar technologies. Other times,
the product lines are vastly different, such as diapers and razors. The four
dimensions to a company's product mix include width, length, depth and
consistency.
Product-mix Width: The width of a company's product mix pertains to the
number of product lines that a company sells. For example, if a company
has two product lines, its product mix width is two. Small and upstart
businesses will usually not have a wide product mix. It is more practical to
start with some basic products and build market share.
Product-mix Length: Product mix length pertains to the number of total
products or items in a company's product mix." For example, ABC company
may have two product lines, and five brands within each product line. Thus,
ABC's product mix length would be 10.
Product-mix Depth: Depth of a product mix pertains to the total number of
variations for each product. Variations can include size, flavour and any
other distinguishing characteristic. For example, if a company sells three
sizes and two flavours of toothpaste, that particular brand of toothpaste has
a depth of six. Just like length, companies sometimes report the average
depth of their product lines; or the depth of a specific product line.
Consistency: Product mix consistency pertains to how closely related
product lines are to one another - in terms of use, production and
distribution. A company's product mix may be consistent in distribution but
vastly different in use. For example, a small company may sell its health
bars and health magazine in retail stores. However, one product is edible
and the other is not. The production consistency of these products would
vary as well.

Explain product line and product line filling.

Ans. Product line: Product line refers to a group of products, implying a
category, that are closely related because –
- they satisfy similar types of needs,
- are used together,
- are sold to the same customer groups,
- are marketed through the same type of outlets,
- fall within a similar price range.
For example, Maruti Suzuki’s passenger cars constitute one product line,
and Tata Motor’s passenger and commercial vehicles constitute two separate
product lines.
Product line filling: A business strategy that involves increasing the
number of products in an existing product line to take advantage of
marketplace gaps and reduce competition. Many businesses use product
line filling to round out an already well-established product line and to help
increase the market success of new related products.
Mention the components of holistic marketing.
Ans: Holistic marketing is characterized by four broad components:
1. Relationship marketing: Aims to build mutually satisfying long-term
relationships with customers & channel partners. The outcome is a
marketing network.
2. Integrated marketing: All the different marketing activities are
coordinated to communicate and deliver maximum value.
3. Internal marketing: Ensuring that all departments in an organization
‘think customer’.
4. Socially responsible marketing: Concerns the ethical, environmental,
legal and social contexts.

Explain ‘Push’ and ‘Pull’ Marketing.

Ans. Push Marketing: Push marketing is a strategy where businesses
attempt to take their products to the customers. The term push stems from
the idea that marketers are attempting to push their products to consumers.
Common sales tactics include trying to sell merchandise directly to
customers via company showrooms and negotiating with retailers to sell
their products for them, or set up point-of-sale displays. Often, these
retailers will receive special sales incentives in exchange for this increased
visibility.
Examples:
Trade show promotions to encourage retailer demand
Direct selling to customers in showrooms or face-to-face
Negotiation with retailers to stock your product
Efficient supply chain allowing retailers an efficient supply
Packaging design to encourage purchase
Point of sale displays
Pull Marketing: Pull marketing, on the other hand, takes the opposite
approach. The goal of pull marketing is to get the customers to come to you,
hence the term pull, where marketers are attempting to pull customers in.
Common sales tactics used for pull marketing include mass media
promotions, word-of-mouth referrals and advertised sales promotions. From
a business perspective, pull marketing attempts to create brand loyalty and
keep customers coming back, whereas push marketing is more concerned
with short-term sales.
Examples:
Advertising and mass media promotion
 Word of mouth referrals
Customer relationship management
Sales promotions and discounts

Explain marketing environment and the forces of micro & macro

environment.
Ans: A variety of environmental forces influence a company’s marketing
system. Some of them are controllable while some others are uncontrollable.
It is the responsibility of the marketing manager to change the company’s
policies along with the changing environment.
According to Philip Kotler, “A company’s marketing environment consists of
the internal factors & forces, which affect the company’s ability to develop &
maintain successful transactions & relationships with the company’s target
customers”.
The environmental factors may be classified as internal factor and external
factor.
Internal Environmental Factors: A Company’s marketing system is
influenced by its capabilities regarding production, financial & other factors.
Hence, the marketing management/manager must take into consideration
these departments before finalizing marketing decisions. The Research &
Development Department, the Personnel Department and the Accounting
Department also have an impact on the Marketing Department. It is the
responsibility of a manager to coordinate with all departments by setting up
unified objectives.
External factors may be further classified into micro factors &macro
factors.
External Macro Environment: These are the factors/forces on which the
company has no control. Hence, it has to frame its policies within the limits
set by these forces:
Demography: It is defined as the statistical study of the human population
& its distribution. A company should study the population, its distribution,
age composition, etc. before deciding the marketing strategies, as a company
can produce only those products which suit the requirement of the
consumers.
Economic Environment: A company can successfully sell its products only
when people have enough money to spend. The economic environment
affects a consumer’s purchasing behavior either by increasing his disposable
income or by reducing it.
Physical Environment or Natural Forces: A company has to adopt its
policies within the limits set by nature. Nature offers resources, but in a
limited manner. Companies must find the best combination of production
for the sake of efficient utilization of the available resources. Otherwise, they
may face acute shortage of resources e.g. Petroleum products, power, water,
etc.
Technological Factors: From customer’s point of view, improvement in
technology means improvement in the standard of living. Every new
invention revolves around a new market. A new technology improves our
lifestyle and at the same time creates many problems e.g. invention of
various consumer comforts like washing machines, mixers, etc have
resulted in improving our lifestyle but it has created severe problems like
power shortage. So, technology should be used for inclusive growth.
Social & Cultural Factors: Most of us purchase because of the influence
of social & cultural factors. A marketing manager must study the society in
which he operates. Consumer’s attitude is also affected by their society,
each having its own culture. Culture changes over a period of time. The
marketer must try to anticipate the changes new marketing opportunities.

What are the challenges posed to marketers by the current marketing

environment in India?
Ans. Companies today are faced with a host of issues, which may cripple
their functionality, or in some extreme cases render the organizations
obsolete. These challenges are dependent on the nature of operations of the
company but broadly, there are common challenges, which are faced by a
majority of organizations.
Technological advancements today are on the increase more than in the
previous century. For an organization to offer services, which are relevant,
cost effective and compatible with society's needs, modern technology has to
be employed. The initial cost of acquiring it, maintaining and running
operations using the acquired technology is inhibitive. This is worsened by
the short lifespan of most technological innovation which imply that
companies and have to reinvest in current technology frequently so as to
sustain their relevance.
Considering that today’s environment consists of the people, who are the
recipients of a firm's services or goods, the fast changing nature of peoples’
likes, dislikes, preferences, opinions and lifestyles is thus a challenge facing
organizations.
Generational gaps have created a difficulty in determining consumer
behaviors, yet most companies are investing heavily in customer behavior
analysis to determine the most appropriate way of matching customers’
needs. Coupled with competition, (both fair and unfair) the challenge of
making profit has been pushed to only the top notch large scale
organizations.
Also, unstable economies and currencies are other factors causing constant
instability in the running of corporations. These are coupled with political
issues indigenously and between nations.
Frauds and cases of fraudulent or questionable business operations and
agreements have been on the rise in the recent past. This has led to heavier
investments in more secure operational systems, to avoid loses created by
those who are meant to safeguard it.
Diverse workforce in terms of demographic or other characteristics e.g.
gender, age group, education etc. are also posing challenges. Several
barriers in dealing with diversity include stereotyping, prejudice,
ethnocentrism, discrimination, tokenism, and gender-role stereotypes are
being experienced.
Managers are faced with a myriad of challenges due to an array of
environmental factors when doing business abroad i.e. globalization. The
managers need to effectively plan, organize, lead, control, and manage
cultural differences to be successful globally.

Explain Diffusion of Innovations (DOI).

Ans: The major development of the DOI theory and practice is attributed to
Rogers (1995) who framed innovation (new product) adoption as a cycle.
Diffusion is the process by which the adoption of an innovation spreads.
New product introductions and their adoption, particularly in case of ‘new-
to-the-world’ products often take a long time.
Customers are sometimes suspicious, even sceptical about adopting new
products. The factors affecting the new product adoption rate include: -
Complexity: the degree of difficulty involved in understanding and using a
new product. The more complex is the product, the slower is its diffusion
rate.
Compatability: the degree to which the new product is consistent with
existing values and product knowledge, past experiences, and current
needs. Incompatible products diffuse more slowly than compatible products.
Relative advantage: the degree to which a product is perceived as superior
to existing substitutes.
Observability: the degree to which the benefits or other results of using the
product can be observed by others and communicated to targeted
customers.
Trialability: the degree to which a product can be tried on a limited basis.
Primarily, two types of communication aid the diffusion of innovation –
word-of-mouth (WOM) communication, and communication from marketers.
Time factor & diffusion process: Time is an important component of new
product diffusion and concerns the time of adoption of a new product by
consumers considering, whether consumers are early or later adopters and
the rate of diffusion, that is, the speed and extent with which individuals
and groups adopt the new product. Roger's research indicated that the
spread of a new technology depends mainly on two factors; innovation or
imitation. Innovators are driven by their desire to try new technologies or
methods and the likelihood of an innovator using a new technology does not
depend on the number of other users. On the other hand, imitators are
primarily influenced by the behaviour of their peers. Normally imitators are
the main contributors to the diffusion or spread of innovation (i.e. early and
late majority). The innovation and imitation factors shape the speed at
which the technology is accepted into everyday use. For example, the colour
TV adopters were mainly imitators (and almost no innovators). On the
contrary, for the fry pan, innovators were more relevant to the uptake of the
technology than imitators. The innovators & imitators are classified by time
of adoption into five categories:
Innovators: Innovators constitute, on an average the first 2.5 per cent of all
those consumers who adopt the new product and are technology
enthusiasts.
Early adopters: Early adopters tend to be opinion leaders in local reference
groups and represent on an average the next 13.5 per cent who adopt the
new product.
Early majority: The early majority tend to be deliberated and cautious with
respect to innovations and represents 34.0 per cent.
Late majority: The late majority (34.0 per cent) are somewhat sceptical
about innovative products. They are conservative, wary of progress, rely on
tradition and generally adopt innovations in response to group norms and
social pressure, or due to decreased availability of the previous product
rather than positive evaluation of the innovation.
Laggards: Laggards represent the last 16.0 per cent of adopters. Like
innovators, they are the least inclined to rely on the group’s norms.
Laggards are tradition bound, tend to be dogmatic and make decisions in
terms of the past.

What is pricing? Discuss the various approaches adopted for pricing the
product/discuss the different pricing strategies.
Ans: Pricing is the process of determining what a company will receive in
exchange for its product. Pricing factors are manufacturing cost, market
place, competition, market condition, brand, and quality of product. Pricing
is also a key variable in microeconomic price allocation theory. Pricing is a
fundamental aspect of financial modelling and is one of the four Ps of the
marketing mix. Price is the only revenue generating element amongst the
four Ps, the rest being cost centers. However, the other Ps of marketing will
contribute to decreasing price elasticity and so enable price increase to drive
greater revenue and profits.
The various approaches of pricing the product are:
Premium Pricing: Premium pricing strategy establishes a price higher than
the competitors. It's a strategy that can be effectively used when there is
something unique about the product or when the product is first to market
and the business has a distinct competitive advantage. Premium pricing can
be a good strategy for companies entering the market with a new product
and hoping to maximize revenue during the early stages of the product life
cycle.
Penetration Pricing: A penetration pricing strategy is designed to capture
market share by entering the market with a low price relative to the
competition to attract buyers. The idea is that the business will be able to
raise awareness and get people to try the product. Even though penetration
pricing may initially create a loss for the company, the hope is that it will
help to generate word-of-mouth and create awareness.
Economy Pricing: Economy pricing is a familiar pricing strategy for
organizations that include Wal-Mart, whose brand is based on this strategy.
Aldi, a food store, is another example of economy pricing strategy.
Companies take every basic, low-cost approach to marketing--nothing fancy,
just the bare minimum to keep prices low and attract a specific segment of
the market that is very price sensitive.
Price Skimming: Businesses that have a significant competitive advantage
can enter the market with a price skimming strategy designed to gain
maximum revenue advantage before other competitors begin offering similar
products or product alternatives. Here, a new product is initially launched
at a high price, targeted to the higher economic status market.
Subsequently, the price is reduced to target lower end market, thereby
skimming all the market segments.
Psychological Pricing: Psychological pricing strategy is commonly used by
marketers in the prices they establish for their products. For instance, Rs.99
is psychologically "less" in the minds of consumers than Rs.100. It's a minor
distinction that can make a big difference.
Cost Based Pricing: Adding a standard mark-up to the cost of the product.
It may include -
Mark-up based pricing: Unit Selling Price = (Cost) + (Mark-up Rate)(Cost);
Example: Cost - Rs 50; Mark-up Rate – 25%
Margin based pricing: Margin% on SP.
Break –Even Analysis and Target Profit Pricing: Setting price to break
even on the costs of making and marketing of a product, or setting price to
make a target profit. Target pricing uses the concept of a break-even, where
the price determines the sales volume within a particular cost structure.
Break-Even Volume=Fixed cost/Price-variable cost
Value based pricing: Value based pricing uses buyer’s perception on value.
The company sets its target price based on customer’s perception of the
product value e.g. a less expensive pen might write as well, but some
consumers place great value on the intangibles they receive from a “fine
writing instrument.”
Every day low price (EDLP): EDLP is the pricing strategy used by retail
stores that provides low prices to the customers every single day without
any special pricing discount, sale, comparison shopping etc. The strategy of
EDLP helps to convince the consumer that they will get better and low
prices than other competitive stores everyday even though the promotions of
competitors at regular intervals might provide lowest prices but they will not
be available every day. Stores like Walmart and Spencers have used the
EDLP strategy to a very good extent for their success.
Bundle pricing: The act of placing several products or services together in a
single package and selling for a lower price than would be charged if the
items were sold separately. The package usually includes one big ticket
product and at least one complementary good. Example – including the cost
of accessories in the price of a car.

What do you mean by market segmentation? State its importance in

marketing. On what criteria does a marketer decide which segment he
should choose as his target market? What are the bases of
segmentation?
Ans: Market segmentation can be defined as the process of dividing a
market into different homogeneous groups of consumers. Market consists of
buyers and buyers vary from each other pertaining to wants, resources,
buying attitude, locations, willingness to buy, likes and dislikes, social and
cultural background and buying practices. By segmentation, large
heterogeneous markets are divided into smaller segments that can be
managed more efficiently and effectively with goods and services that match
with their unique needs.
Importance of market segmentation-
• Facilitates consumer-oriented marketing: Market segmentation facilitates
formation of marketing-mix which is more specific and useful for achieving
marketing objectives. Segment-wise approach is better and effective as
compared to integrated approach for the whole market.
• Facilitates introduction of effective product strategy: Due to market
segmentation, product development is compatible with consumer needs as
there is effective crystallisation of the specific needs of the buyers in the
target market. Market segmentation facilitates the matching of products
with consumer needs. This gives satisfaction to consumers and higher sales
and profit to the marketing firm.
• Facilitates the selection of promising markets: Market segmentation
facilitates the identification of those sub-markets which can be served best
with limited resources by the firm. A firm can concentrate efforts on most
productive/ profitable segments of the total market due to segmentation
technique.
• Facilitates exploitation of better marketing opportunities: Market
segmentation helps to identify promising market opportunities. It helps the
marketing man to distinguish one customer group from another within
agiven market. This enables him to decide his target market. It also enables
the marketer to utilise the available marketing resources effectively as the
exact target group is identified at the initial stage only.
• Provides special benefits to small firms: Market segmentation offers special
benefits to small firms. The resources available with them are limited as
they are comparatively new in the market. Such firms can select only
suitable market segment and concentrate all efforts within that segment
only for better marketing performance.
• Facilitates optimum use of resources: Market segmentation facilitates
efficient use of available resources. It enables a marketing firm to use its
marketing resources in the most efficient manner in the selected target
market.
Criteria for market selection (targeting):
Intra-homogeneity: This means that the consumers allocated to each
segment should be similar in some relevant way. This is the basis of market
segmentation – that the consumers in each segment are similar in terms of
needs and/or characteristics.
Inter-heterogeneity: Each segment of consumers should be relatively
unique, as compared to the other segments that have been constructed.
This demonstrates that the consumers in the overall market have been
effectively divided into sets of differing needs.
Measurable: Some form of data should be available to measure the size of
the market segment. Measurements are very important to be able to
evaluate the overall attractiveness of each segment.
Substantial: The market segment should be large enough, in terms of sales
and profitability, to warrant the firm’s possible attention. Each firm will have
minimum requirements for the financial return from their investment in a
market, so it is necessary to only consider segments that are substantial
enough to be of interest.
Accessible: The market segment should be reachable, particularly in terms
of distribution and communication. Each segment needs to be able to be
reached and communicated with on an efficient basis.
Actionable/practical: The firm needs to be able to implement a distinctive
marketing mix for each market segment. The range of segments identified
generally need to be defined for the capabilities and resources of the
organization, so very specialized segments may not be appropriate.
Responsive: Each market segment should respond better to a distinct
marketing mix, rather than a generic offering.
Tasks involved in segmentation:
1. Identifying the differences between segments in terms of their
needs/value requirements & their likely responses to a particular product
offer & marketing mix elements.
2. Profiling the valid segments by segment descriptors.
3. Checking whether it is possible to formulate distinctive marketing
programmes/marketing mix for the different segments.
4. Determining which segment shall align the best with the company’s
strengths & offerings and that is potentially profitable.
5. Ensure that the segments are identifiable, distinct, measurable, sizeable,
growing, actionable and accessible.
Steps involved in targeting:
1. Look at each segment as a distinct marketing opportunity & grasp what
makes each segment unique.
2. Evaluate the worth of each segment. The attractiveness of each segment
may be assessed based on (1) size of the segment (2) growth rate of the
segment (3) competition in the segment (4) brand loyalty of the existing
customers in the segment (5) attainable market share given promotion
budget & competitors’ expenses (6) required market share to break even (7)
sales potential for the firm in the segment (8) expected profit margins in the
segment, etc.
Examine whether it is better to pick up the whole market or few segments,
and which segments provide the best opportunity that may be picked. Also
check whether the picked segments best fit the firm’s distinctive capabilities.
Bases of segmenting consumer markets-
Geographic segmentation: Marketers can segment according to geographic
criteria—nations, states, regions, countries, languages, cities, population
density, climate etc.
Demographic segmentation: Demographic segmentation is dividing
markets into different groups according to their age, gender, the amount of
income, the ethnicity or religion of the market, marital status, occupation,
education, family life cycle etc.
Lifestyle segmentation: Lifestyle segmentation, which is sometimes called
psychographics. This is measured by studying the activities, interests, and
opinions (AIOs) of customers. Lifestyle is highly important for segmentation,
because it identifies the personal activities and targeted lifestyle the target
subject endures, or the image they are attempting to project.
Psychological segmentation: This includes the needs, motivation,
personality, perception, learning, involvement and attitudes of the market.
These personality traits have important bearing on one’s preferences for
products and brands. As per self-perception theory, one strives to comply
with one’s personality with the products or brands they use.
Value segmentation: people seek different values from the same product
e.g. functional value, economic value, convenience value, prestige/status
value etc. The advantages are:
1. Helps identify segments with specific value orientation
2. Provides insights on the nature, extent & nuances of the value each
segment seeks.
3. Facilitates deep differentiation based on the value sought by buyers.
4. Facilitates value pricing
5. Develop value offers on a more predictable base as it is comparatively
more stable.
Various consumer research techniques e.g. perceptual mapping, conjoint
analysis, trade off analysis, focus group, laddering, thematic appreciation
test etc can be used to identify different value needs of customers. The latest
addition is neuro-marketing.
Behavioural segmentation: based on buying behavior e.g. benefits sought,
attitude towards the product, buyer’s readiness to buy, usage rate of the
product, volume of purchase, purchase occasion etc.
Benefit segmentation: This segments market based on the benefits they
seek from the products. In this case potential customers are segmented
based on their needs and wants rather than some other characteristics.
Usage rate segmentation: Here the market is divided based on the amount
of product bought or consumed e.g. former users, light or regular users,
medium users, heavy users, or Pareto’s 20-80 principle.

Explain brand, brand equity, brand personality, and brand positioning.

Ans: Brand: Brand is a name, term, sign, symbol or design or a combination
of them for identifying goods or services of one seller or a group of sellers
and to differentiate them from those of the competitors. E.g. - Disney,
Annabel, Signature. The difference may be functional, rational or tangible,
related to product performance of the brand. They may also be symbolic,
emotional or intangible, related to what the brand represents.
The important roles played by brand are as follows:
▪signals quality
▪predictability& security of demand through loyalty
▪secure competitive advantage
▪legal property
Brand Equity: It is the added value endowed on goods and services. It may
be reflected in the way consumers think, feel and act with respect to the
brand, as well as in the prices, market share and profitability the brand
commands for the firm. Brand equity arises from:
▪Differences in consumer response…
▪…as a result of consumer’s knowledge about the brand.
Brand equity is positive when consumers react more favourably to a product
and the way it is marketed, when the brand is identified than when the
brand is not identified. It is negative when the customers react less
favorably to marketing activities for the brand under the same
circumstances.
Brand personality: It is a set of human characteristics associated with the
brand, i.e. the way a brand speaks and behaves. It implies the personality
characteristics that anyone would perceive if the brand could be imagined as
a person. In consumer’s mind, these impressions merge to form an overall
concept of what is expected from brand. E.g. - Infosys represents
uniqueness, value and intelligence.
Assessing brand personality enables to select the appropriate endorser for
the brand. The perceived personality characteristics of the brand should
match with that of the endorser, e.g. NIIT and Viswanathan Anand. It also
helps to understand consumer perceptions and attitude towards the brand
and differentiates brand from others with similar product attributes, e.g. -
Mercedes Vs BMW.
Brand positioning: Positioning is the act of designing the company’s
offering and image to occupy a distinctive place in the minds of the target
market. It is all about customer’s perception of the brand when compared
with competitor’s brands. It is done to maximize the potential benefit to the
firm. The result of positioning is the successful creation of a customer-
focused value proposition. It can be created in the following ways:
- Determining a frame of reference by identifying the target market and the
competition.
- Identifying the points-of-parity, i.e. the attributes which are not unique of
the brand and may be shared with other brands.
- Identifying the point-of-difference, i.e., attributes which are not present in
other brands.

Discuss how branding can be done effectively & good brand can be
created. What are the advantages of branding?
Ans: For branding strategies to be successful and brand value to be created,
consumers must be convinced that there are meaningful differences among
brands in the good or service category. Branding involves creating mental
structures and helping consumers organize their knowledge about goods
and services in a way that clarifies their decision-making and provides value
to the firm. To brand a product, it is necessary to teach consumers “who”
the product is, “what” the product does, and “why” consumers should care.
Customer-based brand equity (CBBE) is the differential effect that brand
knowledge has on consumer response to the marketing of that brand. So,
Brand equity arises from differences in consumer response, and as a result
of consumer’s knowledge about the brand.
For effective branding, brand strength implying relevance and
differentiation; and brand stature implying esteem and knowledge needs to
be ensured. Relevance implies that the brand poses as a solution to some
identified needs and wants, and differentiation implies the brand’s unique
selling proposition. Esteem implies how well the brand is regarded by the
targeted market, and knowledge implies the detailed information, feelings,
experiences and beliefs that consumers have about the brand.
The advantages of branding are:
▪brand signals quality
▪brand ensures predictability & security of demand through loyalty
▪brand secures competitive advantage
▪brand is a legal property that cannot be reproduced

Write a detailed note on Consumer Decision Making (CDM).

Ans: Decision making is the process of choosing between two or more
[Link] may be defined as a process of gathering and processing
information, evaluating it and selecting the best possible option so as to
solve a problem or make a buying choice. It pertains to making decisions
regarding good and service offerings.
The various levels of CDM are -
Extended Problem Solving: The purchase process involves significant effort
on part of the consumer. Typically, the consumer collects detailed
information about the various available brands, meticulously compares
them and tries to make a logical decision so that s/he can buy the best
brand alternative. This usually happens in case of high involvement
products. Examples: Jewellery, electronic goods, personal care goods, Real
estate and property etc.
Limited Problem Solving: The purchase process is more of a recurring
purchase and it involves only a moderate effort on part of the consumer.
S/he usually evaluates the brands amongst the awareness set. Examples: A
laptop replacing a desktop.
Routine Problem Solving: It is simple and the process is completed
quickly; purchases made out of habit without any effort on part of the
consumer. These are routine purchases. Examples: Staples, Cold drinks,
Stationery etc.
EPS LPS RPS
Consumer Involvement High Medium Low
Complexity of decision making High Medium Low
Time taken to make decisions High Low to High Low
Information gathering Yes Yes No
Information sources Many Few Few or none
Awareness and
knowledge of:
a) Decision criteria No Yes Yes
b) Alternative brands available No Somewhat Yes
Evaluative criteria Complex Moderate Simple (if at all)
Brands considered Many Few
The stages of CDM are:
Problem Recognition: The consumer buying process begins when the buyer
recognizes a problem or need. For example, Biplab may realize that his best
suit doesn’t look contemporary any more. Or, Tithi may recognize that her
personal computer is not performing as well as she thought it should. These
are the kinds of problem that we as consumers encounter all the time. When
we found out a difference between the actual state and a desired state, a
problem is recognized. When we recognize the need, we purchase a product
that can fulfill the need.
Information Search: When a consumer discovers a problem, he/she is
likely to search for more information. Tithi may simply pay more attention to
product information of a personal computer. She becomes more attentive to
computer ads, computers purchased by her friends, and peer conversations
about computers. Or, she may more actively seek information by visiting
stores, talking to friends, or reading computer magazines, among others.
Through gathering information, the consumer learns more about some
brands that compete in the market and their features and characteristics.
Theoretically, there is a total set of brands available to Tithi, but she will
become aware of only a subset of the brands (awareness set) in the market.
Some of these brands may satisfy her initial buying criteria, such as price
and processing speed (consideration set). As she proceeds to more
information search, only a few will remain as potential alternatives (choice
set).
Evaluation and Selection of Alternatives: How does the consumer
process competitive brand information and evaluate the value of the brands?
Unfortunately there is no single, simple evaluation process applied by all
consumers or by one consumer in all buying situations.
One dominant view, however, is to see the evaluation process as being
cognitively driven and rational. Under this view, a consumer is trying to
solve the problem and ultimately satisfying his/her need. In other words,
he/she will look for problem-solving benefits from the product. The
consumer, then, looks for products with a certain set of attributes that
deliver the benefits. Thus, the consumer sees each product as a bundle of
attributes with different levels of ability of delivering the problem solving
benefits to satisfy his/her need. She finally selects that brand which she
perceives to be the best alternative for fulfilling her needs and wants.
Decision Implementation: To actually implement the purchase decision,
however, a consumer needs to select both specific items (brands) and
specific outlets (where to buy) to resolve the problems. There are, in fact,
three ways these decisions can be made: 1) simultaneously; 2) item first,
outlet second; or 3) outlet first, item second. In many situations, consumers
engage in a simultaneous selection process of stores and brands. For
example, in our Tithi’s personal computer case, she may select a set of
brands based on both the product’s technical features (attributes) and
availability of brands in the computer stores and mail-order catalogues she
knows well. It is also possible, that she decides where to buy and then
chooses one or two brands the store carries. Once the brand and outlet have
been decided, the consumer moves on to the transaction (“buying”).
Post-purchase Evaluation
Post-purchase evaluation processes are directly influenced by the type of
preceding decision-making process. Directly relevant here is the level of
purchase involvement of the consumer. Purchase involvement is often
referred to as “the level of concern for or interest in the purchase” situation,
and it determines how extensively the consumer searches information in
making a purchase decision. Although purchase involvement is viewed as a
continuum (from low to high), it is useful to consider two extreme cases
here. Suppose one buys a certain brand of product (e.g., Diet Pepsi) as a
matter of habit (habitual purchase). For him/her, buying a cola drink is a
very low purchase involvement situation, and he/she is not likely to search
and evaluate product information extensively. In such a case, the consumer
would simply purchase, consume and/or dispose of the product with very
limited post-purchase evaluation, and generally maintain a high level of
repeat purchase motivation.

Explain the types of data & scales.

Ans: Data: Data is the collective name for values of a variable under study.
It is the basic source for using descriptive or inferential statistics. In
scientific research, data arise from experiments whose results are recorded
systematically.
Types of Data: Data is classified into various types, as follows:
-Primary & Secondary
-Qualitative & Quantitative
-Cross section, Temporal & Spatial data.
Primary Data: It is the first-hand data collected from participants
through methods such as telephone, mail, online, and face-to-face
(quantitative), and observation studies and focus groups (qualitative). It is
information that is developed or gathered by the researcher specifically for
the research project at hand.
Secondary Data: It is the second-hand data collected from media
reports, newspapers, handbooks, magazines, websites, agencies etc. Such
data has previously been gathered by someone other than the researcher
and/or for some other purpose than the research project at hand.
Qualitative Data: Qualitative data are measures of 'types' and may be
represented by a name, symbol, or a number code. These are the data about
categorical variables. (e.g. what type)For e.g. yes or no, male or female, pass
or fail etc.
Quantitative Data: Quantitative data are measures of values or
counts and are expressed as numbers. These are data about the numerical
variables. (e.g. how many, how much, how often etc.). For e.g. heights,
income of individuals, marks obtained by students, number of children in a
family etc.
Cross section Data: It comprises values of a variable recorded over at
the same point or period of time for many individuals, organizations, places
etc. For e.g. Stock prices of Infosys, TCS & Wipro on 31st march,2021, Sales
revenue of HUL and P&G during the year 2020-21.
Temporal Data: It is also referred to as time series data, is the data
about an individual, organization, place etc. over a period of time. For e.g.
total business of ICICI bank as at the end of last 5 years, Marks obtained by
as tudent from standards I to X.
Spatial Data: It is the data based on geographical location basis. The
cross section data with respect to place is also categorized as spatial data.
For e.g., Sales of a company in Metro cities in India during 2020-21.
Scale: Measurement scales are used to categorize and/or quantify variables.
Each scale of measurement satisfies one or more of the following properties
of measurement:
• Identity. Each value on the measurement scale has a unique meaning.
• Magnitude. Values on the measurement scale have an ordered
relationship to one another. That is, some values are larger than others.
• Equal intervals. Scale units along the scale are equal to one another. This
means, for example, that the difference between 1 and 2 would be equal to
the difference between 19 and 20.
• A minimum value of zero. The scale has a true zero point, below which
no values exist.
Types of Scales: There are four scales of measurement that are commonly
used in statistical analysis: nominal, ordinal, interval, and ratio scales.
Nominal scale: Nominal scales are naming scales. They represent
categories where there is no basis for ordering the categories. Examples:
Gender; Religious preference e.g. 1 = Buddhist, 2 = Muslim, 3 = Christian, 4
= Jewish, 5 = Other
Ordinal scale: Ordinal scales involve categories that can be ordered along a
pre-established dimension. It is a ranking scale in which numbers are
assigned to objects to indicate the relative extent to which some
characteristic is possessed, such as quality ranking, social economic class,
and so on. In marketing research, ordinal scales are used to measured
relative attitudes, opinions, perceptions, and preferences. For example,
Company X has three main products: A, B and C. Based on turnover,
product A ranking is number1, product B is number 3 and product C is
number 2.
Interval scale: Interval scales are very similar to standard numbering
scales except that they do not have a true zero.
That means that the distance between successive numbers is equal, but
that the number zero does NOT mean that there is none of the property
being measured. Many measures that involve psychological scales,
especially those that use a form of normal standardization (e.g., IQ), are
assumed to be interval scales of measurement.
Ratio scale: Ratio scales are the easiest to understand because they are
numbers as we usually think of them. The distance between adjacent
numbers are equal on a ratio scale and the score of zero on the ratio scale
means that there is none of whatever is being measured. Most ratio scales
are counts of things.
Examples: time to complete a task; number of responses given in a specified
time period; weight of an object.
Within the above types, there are different types of scales used by
researchers, e.g.
Comparative scale, e.g. Paired comparison scale, Rank order scale and
Constant sum scale.
Non-comparative scale, e.g. Continuous rating scale and Itemised rating
scale. Itemised rating scale includes Likert scale, Guttman scale, Thurston
scale, Semantic Differential scale and Stapel scale.
Explain the steps in Marketing Research.
Ans.: The Market research process involves separate steps of data collection,
organization and interpretation. These stages could be considered as a
benchmark of market research, but some of the interlinked stages could be
conducted repeatedly and some of the stages can also be omitted. Given
below is a typical market research process which is depicted stage-wise:
Stage 1: Formulating the Marketing Research Problem: Formulating a
problem is the first step in the research process. In many ways, research
starts with a problem that management is facing. A management problem
must first be translated into a research problem. Once you approach the
problem from a research angle, we can find a solution.
For example, “sales are not growing” is a management problem. Translated
into a research problem, we may examine the expectations and experiences
of several groups: potential customers, first-time buyers, and repeat
purchasers. Research problems focus on providing the information one
needs to solve the management problem.
Stage 2: Method of Inquiry: The scientific method is the standard pattern
for investigation. It provides an opportunity for us to use existing knowledge
as a starting point and proceed impartially. The scientific method includes
the following steps:
1. Formulate a problem
2. Develop a hypothesis
3. Devise a test of the hypothesis
4. Conduct the test
5. Analyze& interpret the results
The scientific method is objective while the research process can be
subjective.
Stage 3: Research Method (Picking out the appropriate methodology):
In addition to selecting a method of inquiry (objective or subjective), we must
select a research method. There are two primary methodologies available:
experimental research and non-experimental research.
Experimental research gives us the advantage of controlling extraneous
variables and manipulating one or more variables that influences the
process being implemented. Non-experimental research allows observation
but not intervention.
Stage 4: Research Design: The research design is a plan or framework for
conducting the study and collecting data. It is defined as the specific
methods and procedures that one uses to acquire the required information.
Stage 5: Data Collection Techniques: There are many ways to collect data.
Two important methods to consider are interviews and observations.
Interviews require asking questions and extracting responses. Interviews
may be conducted face-to-face, by mail, by telephone, by email, or over the
Internet. This broad category of research techniques is known as survey
research. These techniques are used in both non-experimental research and
experimental research.
Another way to collect data is by observation. Observing a person’s or
company’s past or present behavior can predict future purchasing decisions.
Data collection techniques for past behavior can include analyzing company
records and reviewing studies published by external sources.
Stage 6: Sampling Design: A marketing research project will rarely examine
an entire population. It’s more practical to use a sample—a smaller but
accurate representation of the greater population. Once we establish the
relevant population (completed in the problem formulation stage), then we
have a base for our sample. This will allow us to make inferences about a
larger population. There are two methods of selecting a sample from a
population: probability or non-probability sampling. The probability method
relies on a random sampling of everyone within the larger population. Non-
probability is based in part on the judgment of the investigator, and often
employs convenience samples, or by other sampling methods that do not
rely on probability.
The final stage of the sampling design involves determining the appropriate
sample size. This important step involves cost and accuracy decisions.
Larger samples generally reduce sampling error and increase accuracy, but
also increase costs.
Stage 7: Data Collection: Depending on the mode of data collection, this
part of the process can require large amounts of personnel and a significant
portion of our budget. Personal (face-to-face) and telephone interviews may
require to use a data collection agency (field service).Internet surveys require
fewer personnel, are lower cost, and can be completed in days rather than
weeks or months.
Regardless of the mode of data collection, the data collection process
introduces another essential element to our research project: the importance
of clear and constant communication.
Stage 8: Analysis and Interpretation: In order for data to be useful, we
must analyze it. Analysis techniques vary and their effectiveness depends on
the types of information we are collecting, and the type of measurements
one is using. As they are dependent on the data collection, analysis
techniques should be decided before this step.
Stage 9: The Marketing Research Report: The marketing research process
culminates with the research report. This report will include all the
information, including an accurate description of the research process, the
results, conclusions, and recommended courses of action. The report should
provide all the information the decision maker needs to understand the
project. It should also be written in language that is easy to understand.

Write a note on Sales promotion.

Ans: Sales promotion can be defined as – those marketing activities, other
than personal selling, advertising and publicity, that stimulate consumer
purchase and dealer effectiveness, such as displays, shows and expositions,
demonstration and various non-recurrent selling efforts, not in the ordinary
routine. There are two types of sales promotions:
a) Consumer Sales Promotion
b) Trade Sales Promotion
Consumer sales promotion: These promotions are directed to the
consumers. Examples include--
Product sampling: free sampling, such as – small pouch of shampoo given to
the customers to induce first-hand experience about the product.
Price-off offer: this is done mainly in maturity growth stage. When there are
more competitors in the market, companies try to retain it’s customers by
offer them their product at lesser price.
More quantity offer: by offering more quantity at same price, companies
actually add value of their product to retain their existing customers and the
customers gets more quantity at old price.
Premium scheme offer: some additional gifts with the product are given to
the customers by the sellers, such as – a wrist watch with a new mobile
connection.
Coupons: This involves offering price reduction or saving to customers on
the purchase of a specific product. The coupons may be mailed or enclosed
along with other products, or inserted in a magazine or newspaper
advertisement.
Discounts: It refers to reduction in price on a particular item during a
particular period. It is common during festival season or during off-season
period. It stimulates short-term sales, especially when the discount provided
is genuine one.
Instalment sales: In this case, consumers initially pay smaller amount of the
price and the balance amount in monthly instalments over a period of time.
Many consumer durables such as refrigerators and cars are sold on
instalment basis.
Exchange scheme: In this case, the customer exchanges the old product for
a new one. The old product’s exchange value is deducted from the price of
the new product. This sales promotion tool is used by several companies for
consumer durables.
Trade Sales promotion: These promotions are directed to the distribution
channel partners. Examples include--
Dealers stock display contest: it is a type of point of purchase advertising
which uses the show windows of the dealers for providing exposure to the
sponsor’s product. Dealers participating enthusiastically and creatively are
awarded.
Dealers sales contest: In this case dealers are invited to compete in terms of
their sales performance.
Discount: other than normal case and trade discount.
Dealers gift: offer the useful article and an attractive gift to dealers his /her
personal or family use.
Push money: when an additional compensation is offered for pushing a
specific product or product line.
Dealer-loader: Concession given on bulk purchase.
Co-operative advertising: those special display racks, banners, exhibits that
are placed at the retail point, gives support to the sale of a brand.
Dealer trophies: Some firms may institute a special trophy to the highest-
performing dealer in a particular period of time. Along with the trophy, the
dealer may get a special gift such as a sponsored tour within or outside the
country.
Write a note on Publicity.
Ans. Publicity is an effort to make available certain information to the
public. According to Association of Teachers of Marketing and Advertising of
America, publicity is any form of non-personal presentation of
goods/services/ideas to a group.
Features/characteristics:
Publicity may or may not be related with the communication of
commercial information.
Publicity is usually non-paid form of communication by media.
In case of publicity, the message of the sponsor is controlled by the media
owners in respect of space, time, style and format.
Publicity commands credibility and public acceptance as it comes from
the desk of an editor, a neutral person.
In case of publicity, if it is ignored by the public, the sponsor does not
suffer because it is not a paid form.
Advantages & Disadvantages:
The advantages of publicity are low cost, and credibility (particularly if the
publicity is aired in between news stories like on evening TV news casts).
The disadvantages are lack of control over how your releases will be used,
and frustration over the low percentage of releases that are taken up by the
media.

Write a note on Green marketing.

Ans. It refers to the process of selling goods and services based on their
environmental benefits. Such a good or service may be environmentally
friendly in itself or produced and/or packaged in an environmentally
friendly way. The obvious assumption of green marketing is that potential
consumers will view a good’s or service's ‘greenness’ as a benefit and base
their buying decision accordingly.
The not-so-obvious assumption of green marketing is that consumers will be
willing to pay more for green products than they would for a less-green
comparable alternative product.
While green marketing is growing greatly as increasing numbers of
consumers are willing to back their environmental consciousness with their
spending, it can be dangerous. The public tends to be skeptical of green
claims to begin with and companies can seriously damage their brands and
their sales if a green claim is discovered to be false or contradicted by a
company's other products or practices. Presenting a product as green when
it's not is called green washing. Green marketing can be a very powerful
marketing strategy though, when it's done right.

Write a note on Database marketing.

[Link] is a form of direct marketing using databases of customers or
potential customers to generate personalized communications in order to
promote a product or service for marketing purposes. Sellers use the
individually addressable marketing media and channels (such as mail,
telephone and the sales force) for this purpose.
There are two main types of marketing databases-
Consumer databases -- Consumer database including name, address,
history of shopping and purchases etc. are used for B-to-C marketing.
2) Business databases – Industry database used for B-to-B marketing.
Advantages and disadvantages:
Advantages-
1. Reduce marketing cost
2. Easy and time effective.
3. Can reach to large no of customers in a minimum spare of time.
4. Direct feedback can be obtained by it.
Disadvantages-
1. Database marketing often requires major infrastructure build up and
thus may be expensive.
2. It depends on data quality.

Write a note on Internet marketing.

Ans. Internet marketing or online marketing refers to advertising and
marketing efforts that use the Web and email to drive direct sales via
electronic commerce, in addition to sales leads from Websites or emails.
Internet marketing and online advertising efforts are typically used in
conjunction with traditional types of advertising like radio, television,
newspapers and magazines.
The internet has transformed business marketing. There has been a rapid
rise in the number of e-commerce enterprises selling goods online. Some
operate solely in the online sphere. Many others are bricks and mortar
businesses that are also offering products and services via their websites.
Many businesses are using the internet to promote their business via
websites, blogs, email, social media sites like Twitter and networking sites
like LinkedIn.

Write a note on Societal marketing.

Ans. It is a marketing concept that holds that a company should make
marketing decisions by considering consumers' wants, the company's
requirements, and society's long-term interests. Therefore, marketers must
endeavour to satisfy the needs and wants of their target markets in ways
that preserve and enhance the well-being of consumers and society as a
whole. It is closely linked with the principles of corporate social
responsibility and of sustainable development.

Write a note on Relationship marketing.

Ans. It is a facet of customer relationship management (CRM) that focuses
on customer loyalty and long-term customer engagement rather than
shorter-term goals like customer acquisition and individual sales. The goal
of relationship marketing (or customer relationship marketing) is to create
strong, even emotional, customer connections to a brand that can lead to
ongoing business, free word-of-mouth promotion and information from
customers that can generate leads.
Relationship marketing stands in contrast to the more traditional
transactional marketing approach, which focuses on increasing the number
of individual sales. In the transactional model, the return on customer
acquisition cost may be insufficient. A customer maybe convinced to select
that brand one time, but without a strong relationship marketing strategy,
the customer may not come back to that brand in the future. While
organizations combine elements of both relationship and transactional
marketing, customer relationship marketing is starting to play a more
important role for many companies.

Write a note on Value Chain Analysis.

Ans. Value Chain Analysis is a useful tool for working out how you can
create the greatest possible value for your customers. In business, we're
paid to take raw inputs, and to "add value" to them by turning them into
something of worth to other people. This is easy to see in manufacturing,
where the manufacturer "adds value" by taking a raw material of little use to
the end-user (for example, wood pulp) and converting it into something that
people are prepared to pay money for (e.g. paper). But this idea is just as
important in service industries, where people use inputs of time, knowledge,
equipment and systems to create services of real value to the person being
served – the customer.
Value Chain Analysis is a three-step process:
1. Activity Analysis: First, you identify the activities you undertake to deliver
your product or service;
2. Value Analysis: Second, for each activity, you think through what you
would do to add the greatest value for your customer; and
3. Evaluation and Planning: Thirdly, you evaluate whether it is worth
making changes, and then plan for action.
These activities can be classified generally as either primary or support
activities that all businesses must undertake in some form.
According to Porter (1985), the primary activities are:
1. Inbound Logistics - involve relationships with suppliers and include all
the activities required to receive, store, and disseminate inputs.
2. Operations - are all the activities required to transform inputs into
outputs (goods and services).
3. Outbound Logistics - include all the activities required to collect, store,
and distribute the output.
4. Marketing and Sales - activities inform buyers about products and
services, induce buyers to purchase them, and facilitate their purchase.
5. Service - includes all the activities required to keep the product or service
working effectively for the buyer after it is sold and delivered.
Secondary activities are:
1. Procurement - is the acquisition of inputs, or resources, for the firm.
2. Human Resource management - consists of all activities involved in
recruiting, hiring, training, developing, compensating and (if necessary)
dismissing or laying off personnel.
3. Technological Development - pertains to the equipment, hardware,
software, procedures and technical knowledge brought to bear in the firm's
transformation of inputs into outputs.
4. Infrastructure - serves the company's needs and ties its various parts
together, it consists of functions or departments such as accounting, legal,
finance, planning, public affairs, government relations, quality assurance
and general management.

Write a note on BCG (Boston Consulting Group) Matrix.

Ans. BCG Matrix/Analysis is a chart which was created by Bruce
Henderson for the Boston Consulting Group in 1968 to help corporations
analyze their business units, in terms of allocating resources. In a multi-
business firm, some of its businesses may be having a high relative market
share and certain others a low share and in respect of some businesses, the
industry as a whole may be growing at an attractive rate, while in the
others, the industry growth rate may be very poor. The firm has to evaluate
its performance in all its businesses. It also has to size up the performance
of the industries concerned. The BCG Growth Share Matrix deals with the
process of evaluation of the industry growth and the relative position of a
firm in the industry. The matrix classifies the businesses of a firm into four
distinct categories on the basis of the two parameters- industry growth and
market share relative to other main players. Those categories are-
• Stars (high share, high growth): Stars are SBUs that have moved to the
position of leadership in a high growth market. Their cash needs are often
high with the cash being spent in order to maintain market growth and keep
competitors at bay. They also generate large amount of cash. At this stage,
provided the share is maintained, the SBU is expected become a cash cow in
future.
• Cash cows (high share, low growth): When the rate of market growth
begins to flatten out, stars typically become the company’s cash cows. These
SBUs generate considerable amount of cash, but due to lower growth rate
need lesser investment. So, profit margins are maximised in these cases.
• Question marks (low share, high growth): These are businesses
operating in high growth markets but with allow relative market share. They
generally require considerable sums of cash as investment in plant,
machinery and manpower to keep up with market developments, as well as
to improve competitive position. The title ‘question mark’ comes because
management has to decide whether to continue investing in the SBU or shut
it.
• Dogs (low share, low growth): These are businesses that have a weak
market share in a low growth market. Typically they either generate low
profit or incur loss. The decision faced by the company is whether to hold on
to this SBU for strategic reasons i.e. in the expectation that the market will
grow, or their product provides an obstacle to a competitor.

Write a note on Porter’s 5-forces model.

Ans. Five Forces of Competitive Position Analysis were developed in 1979 by
Michael E Porter of Harvard Business School as a simple framework for
assessing and evaluating the competitive strength and position of a business
organisation. This theory is based on the concept that there are five forces
that determine the competitive intensity and attractiveness of a market.
Porter’s five forces help to identify where power lies in a business situation.
This is useful both in understanding the strength of an organisation’s
current competitive position, and the strength of a position that an
organisation may look to move into.
The five forces are discussed below:
1. Threat of new entrants - Profitable markets attract new entrants, which
erodes profitability. Unless incumbents have strong and durable barriers to
entry, for example, patents, economies of scale, capital requirements or
government policies, then profitability will decline.
2. Bargaining power of buyers - It is another force that influences the
competitive condition in an industry. It influences the prices the firm can
charge. It also influences costs and investments, because powerful buyers
usually bargain for costly service, which result in added costs/investments
for the firm. The firms can take measures to reduce buyer power, such as
implementing a loyalty program. The buyer power is high if the buyer has
many alternatives.
3. Bargaining power of suppliers – Suppliers too command considerable
bargaining power over companies. The more specialized the offering from the
supplier, the greater is his clout. Also, if the suppliers are limited in
number, they stand a higher chance to exhibit their bargaining power. The
bargaining power of suppliers determines the costs of raw materials,
components, and other inputs of the industry as well as the individual firm
and affects the profitability of the firm.
4. The rivalry among existing players - The main driver is the number and
capability of competitors in the market. Many competitors, offering
undifferentiated goods and services, will reduce market attractiveness.
5. Threat from substitutes - Where close substitute products exist in a
market, it increases the likelihood of customers switching to alternatives in
response to price increases. This reduces both the power of suppliers and
the attractiveness of the market.

State the importance of Marketing Information System (MIS) in

marketing.
Ans: Marketing Information System (MIS) is a system in which marketing
data is formally gathered, stored, analyzed and distributed to managers in
accordance with their informational needs on a regular basis. Benefits of
MIS are it helps to recognize trends, it facilitates marketing planning and
control, and it provides marketing intelligence for the organization.
Ability to collect, analyze and act upon marketing information more rapidly
is the source of competitive advantage for any organization. Marketing
information systems provide the information technology backbone for the
marketing organization’s strategic operations.
Benefits of the Marketing Information System:
Market Monitoring: Through the use of market research and marketing
intelligence activities the MIS can enable the identification of emerging
market segments, and the monitoring of the market environment for
changes in consumer behavior, competitor activities, new technologies,
economic conditions and governmental policies.
Strategy Development: The MIS provides the information necessary to
develop marketing strategy. It supports strategy development for new
products, product positioning, marketing communications (advertising,
public relations, and sales promotion), pricing, personal selling, distribution,
customer service and partnerships and alliances.
Strategy Implementation: The MIS provides support for product launches,
enables the coordination of marketing strategies, and is an integral part of
customer relationship management (CRM), and customer service systems
implementations.
Functional integration: The MIS enables the coordination of activities within
the marketing department and between marketing and other organizational
functions such as engineering, production, product management, finance,
manufacturing, logistics, and customer service.
A satisfied customer may not be a loyal customer. Explain.
Ans. Customer satisfaction is a measurement of customer attitude regarding
products, services and brands, whereas customer loyalty consists implies
the act of customers making repeat purchases of current brands.
Even if a customer is totally satisfied with a brand, it is not necessary that
they will buy it. While satisfaction is a basic criteria without which, the
product will not achieve any sales, however, in a perfect competition
situation, the marketers need to add value, which should be perceived as a
value addition, to achieve competitive advantage.
If the goal is to achieve loyalty, then only meeting their expectations will not
work. It is needed to go beyond that and consider what really motivates the
customer to be loyal. Mobile phone service is a good example of an industry
with wide satisfaction but little loyalty. Many customers will leave their
carrier at the drop of an offer for a new smart phone or prepaid card, yet
their current service is perfectly satisfactory.
Satisfaction and loyalty benefits the company in various ways. Customers
who are satisfied are more likely to promote the company through word-of-
mouth because satisfaction is something people often talk about. Loyal
customers on the other hand, translate words into actions by engaging in
repeat purchases. The best part is that loyal customers tend to purchase
from the same brand or business without shopping around for the best
deals or the best price.
It costs five times more to acquire new customers than it does to keep
current ones, thus, it’s financially wiser for business to work on retaining
satisfied customers.

Define new product. Narrate the different stages of new product

development process.
Ans: A product can be a service or a good offered for sale. A new product
can be launched in an existing category or it can be a ‘new-to-the-world’
product which didn’t exist earlier.
The company's objectives to launch new products are:
- Offer a product that customers want to pay for, and
- Become competitive through innovation or achieve first-mover
advantage.
The different stages of new product development (NPD) process:
Improving and updating product lines is crucial for the success for any
organisation. NPD has eight stages, which are discussed below:
Idea generation: New ideas can be generated by:
1. Conducting marketing research to find out the consumers' needs and
wants.
2. Inviting suggestions from consumers.
3. Inviting suggestions from employees.
4. Brainstorming suggestions for new-product ideas.
5. Searching in different markets viz., national and international markets for
new-product ideas.
6. Getting feedback from agents or dealers about services offered by
competitors.
7. Studying the new products of the competitors.
Idea screening: This process involves shifting through the ideas generated
and selecting ones which are feasible and has potential commercial value.
Before selecting or rejecting an idea, the following questions are considered:
1. Is it necessary to introduce a new product?
2. Will the customer in the target market benefit from the product?
3. Can the existing plant and machinery produce the new product?
4. Can the existing marketing network sell the new product?
5. What is the size and growth forecasts of the market segment / target
market?
6. What is the current or expected competitive pressure for the product
idea?
7. What are the industry sales and market trends the product idea is based
on?
8. Will the product be profitable when manufactured and delivered to the
customer at the target price?
If the answers to these questions are positive, then the idea of a new-
product development is selected else it is rejected. This step is necessary to
avoid product failure.
Concept developing and testing: Concept testing is done after idea
screening. In this stage, the company finds out:
1. Whether the consumers understand the product idea or not?
2. Whether the consumers need the new product or not?
3. Whether the consumers will accept the product or not?
4. Who is the target market and who is the decision maker in the
purchasing process?
5. What product features must the product incorporate?
6. What benefits will the product provide?
7. How will consumers react to the product?
8. How can the product be produced most cost effectively?
9. What will it cost to produce it?
Here, a small group of consumers is selected. They are given full information
about the new product. Then they are asked what they feel about the new
product. They are asked whether they like the new product or not. So,
concept testing is done to find out the consumers’ reactions towards the new
product.
Business analysis: After the company has a great idea, and the marketing
strategy seems feasible, it needs to analyse whether the product will be
profitable in the long run; and how much market share the product may
achieve, and what may be the expected life of the product. The business
analysis looks more deeply into the cash flow the product can potentially
generate, and what will be the cost liability.
Product development: At this stage, the company takes all necessary steps
to produce and distribute the new product. The production department will
make plans to produce the product. The marketing department will make
plans to distribute the product. The finance department will provide the
finance for introducing the new product. The advertising department will
plan the advertisements for the new product. However, all this is done on a
small scale for Test Marketing.
Test marketing: Test marketing means to introduce the new product on a
very small scale in a very small market. If the new product is found to be
successful in this market, then it is introduced on a large scale. However, if
the product fails in the test market, then the company finds out the reasons
for its failure. It makes necessary changes in the new product and
introduces it again in a small market. If the new product fails again the
company will reject it. The process includes –
¤ Produce a physical prototype or mock-up.
¤ Test the product (and its packaging) in typical usage situations.
¤ Conduct focus group customer discussions/interviews or introduce at
trade show.
¤ Make adjustments where necessary.
¤ Produce an initial run of the product and sell it in a test market area to
determine customer acceptance.
Test marketing reduces the risk of large-scale marketing.
Commercialization and product pricing: If the test marketing is
successful, then the company introduces the new product on a large scale,
say all over the country. The company makes a large investment in the new
product. It produces and distributes the new product on a huge scale. It
advertises the new product on the mass media like TV, Radio, Newspapers
and Magazines, etc. It also includes Product Pricing.
Review of market performance: The company must review the
performance of the new product. It must answer the following questions:
1. Is the new product accepted by the consumers?
2. Are the demand, sales and profits high?
3. Are the consumers satisfied with the after-sales-service?
4. Is the marketing staff happy with the income from the new product?
5. Are the competitors introducing a similar new product in the market?
The company must continuously monitor the performance of the new
product. They must make necessary changes in their marketing plans and
strategies, otherwise the product may fail.

WHAT IS POST PURCHASE COGNITIVE DISONANCE?

Ans. Cognitive dissonance refers to the conflicting attitudes, behaviour or
belief. It is a state that it occurs when consumer holds two or more
conflicting attitude or beliefs about one product or services. It likely to occur
after consumer makes a purchase. Post purchase cognitive dissonance
(PPDC) is the stage when consumer feel unease in his/her mind after buying
product or service.
For example- when a consumer makes a decision to purchase an item and
shortly after, experiences guilt over the choice, wondering if the other
equally appealing item might have brought greater satisfaction; or when one
buys a car and then wonders whether s/he paid too much for it?

Write a note on Ansoff's product strategy matrix.

Ans. One way of analysing the various strategies that an organisation may
use to grow the business is with Igor Ansoff’s (1965) matrix. This considers
the opportunities of offering existing and new products within existing
and/or new markets and the levels of risk associated with each.

This matrix suggests four alternative marketing strategies:

1. Market penetration - involves selling more established products into
existing markets, often by increased promotion or price reductions or better
routes to market, for example online.
2. Product development - involves developing new products and placing them
into existing markets
3. Market development - entails taking existing products and selling them in
new markets.
4. Diversification - involves developing new products and putting them into
new markets at the same time. Diversification is considered the most risky
strategy. This is because the business is expanding into areas outside its
core activities and experience as well as targeting a new audience. It also
has to bear the costs of new product development.
What is sampling? What are the different types of sampling techniques?
Ans: Sampling is concerned with the selection of a subset of individuals from
within a statistical population to estimate characteristics of the whole
population. Each observation measures one or more properties of the
individuals. The reason for using a sample, rather than collecting data from the
entire population is that it would be practically impossible to collect data from,
or test, or examine every element. It would also be prohibitive in terms of time,
cost and other human resources.
The major steps in sampling include:
1. Defining the population: The population refers to the entire group of
people, events, or things of interest for which the researcher wants to make
inferences. Sampling begins with precisely defining the target population. The
target population must be defined in terms of whom the research findings may
be relevant/the targeted market.
2. Determining the sampling frame: The sampling frame is a representation
of all the elements in the population from which the sample is drawn. The
payroll of an organization would serve as the sampling frame if its members are
to be studied. To avoid errors of sampling frame, the researcher needs to define
the sampling frame criteria and match the targeted respondents with these
criteria.
3. Determine the sampling design: There are two major types of sampling
design- probability and non-probability sampling. In probability sampling, the
elements in the population have some known, non- zero chance or probability
of being selected as sampling units. In non-probability sampling, the elements
do not have a known or predetermined chance of being selected as subjects.
4. Determine the appropriate sample size: Sample size determination is the
act of choosing the number of observations to include in a statistical sample.
The sample size is an important feature of any empirical study in which the
goal is to make inferences about a population from a sample. A larger sample
size reduces the probable error.
5. Deciding the sampling technique: Prior to collecting the data, the
appropriate sampling technique needs to be decided. This process is important
to ensure representativeness of the sample in terms of the studied population.
Following are the different sampling techniques -
Probability sampling methods -
Simple Random Sampling: The simple random sample is the basic sampling
method assumed in statistical methods and computations. It is probability
sampling, and so enables generalization of the sample findings to the
population. To collect a simple random sample, each unit of the target
population is assigned a number. A set of random numbers is then generated
and the units having those numbers are included in the sample. E.g, let’s say
you have a population of 1,000 people and you wish to choose a simple random
sample of 50 people. First, each person is numbered 1 through 1,000. Then,
you generate a list of 50 random numbers (typically with a computer program)
and those individuals assigned those numbers are the ones you include in the
sample.
Systematic Sampling: In a systematic sample, the elements of the population
are put into a list and then every kth element in the list is chosen
(systematically) for inclusion in the sample. E.g., if the population of study
contained 2,000 students at a high school and the researcher wanted a sample
of 100 students, the students would be put into list form and then every 20th
student would be selected for inclusion in the sample.
Stratified Sampling: A stratified sample is a sampling technique in which the
researcher divides the entire target population into different subgroups, or
strata, and then randomly selects the final subjects proportionally from the
different strata. This type of sampling is used when the researcher wants to
highlight specific subgroups within the population. E.g., to obtain a stratified
sample of university students, the researcher would first organize the
population by college class and then select appropriate numbers of certain
sub-groups. This ensures that the researcher has adequate number of subjects
from each class in the final sample.
Cluster Sampling: Cluster samples are samples gathered in groups or chunks
of elements that ideally are natural aggregates of elements in the population. In
cluster sampling the target population is first divided into clusters with intra-
homogeneity and inter-heterogeneity. Then a random sample of clusters is
drawn and for each selected cluster either all the elements or a sample of
elements are included in the sample.
A specific type of cluster sampling is area sampling. In this case, clusters
consist of geographic areas such as countries, city blocks, or particular
boundaries within a locality.
Non-probability sampling methods -
Convenience Sampling: Convenience sampling refers to the collection of
information from members of the population who are conveniently available to
provide it. This kind of sampling is most often used during the exploratory
phase of a research project and is perhaps the best way of getting some basic
information quickly and efficiently.
Purposive Sampling: The sampling is confined to specific type of people who
can provide the desired information, either because they are the only ones who
have it, or conform to sampling frame criteria set by the researcher. This type
of sampling design is called purposive sampling. The two major types of
purposive sampling are-
1. Judgment sampling
2. Quota sampling
Judgment Sampling: Judgment sampling involves the choice of subjects
who are most advantageously placed or in the best position to provide the
information required. For instance, if a researcher wants to find out what it
takes for women managers to make it to the top, the only people who can give
first-hand information are the women who have risen to the top positions in
organizations. Judgment sampling may curtail the generalizability of the
findings, due to the fact that we are using a sample of experts who are
conveniently available to us.
 Quota Sampling: Quota sampling, a second type of purposive sampling,
ensures that certain groups are adequately represented in the study through
the assignment of a quota. Generally, the quota fixed for each subgroup is
based on the total numbers of each group in the population. However, since
this is a non-probability sampling plan, the results are not generalizable to the
population.

Mention some factors that influence the consumers’ buying decision.

Ans. Some factors influencing CDM are:
Cultural: culture includes consumer’s culture, sub-culture and social class.
These factors are often inherent in our decision process.
Social: Include reference groups & family rules and status; these explain the
outside influences of others on our purchase decision either directly or
indirectly.
Psychological: Factors such as motivation, perception, learning, beliefs and
attitude affect our purchase decision.
Personal: Include factors such as age and life-cycle stage, occupation, economy
circumstance, lifestyle activities, interest, opinion and demographics,
personality and self-concept.
Mood: While a sour mood can spoil a consumer’s desire to shop, the vice-versa
is also true.
Personality and Self-Concept: Personality describes a person’s disposition, helps
show why people are different, and encompasses a person’s unique traits.
Lifestyle: A number of research organizations examine lifestyle and
psychographic characteristics of consumers. Psychographics combines the
lifestyle traits of consumers and their personality styles with an analysis of
their attitudes, activities, and values to determine groups of consumers with
similar characteristics.
Perception: Perception is how you interpret the world around you and make
sense of it in your brain.
Learning: Learning refers to the process by which consumers change their
behavior after they gain information or experience.
Attitude: Attitudes are “mental positions” or emotional feelings, favorable or
unfavorable evaluations, and action tendencies people have about products,
services, companies, ideas, issues, or institutions. Attitudes tend to be
enduring, and because they are based on people’s values and beliefs, they are
hard to change.
Reference Groups and Opinion Leaders: Reference groups are groups (social
groups, work groups, family, or close friends) a consumer identifies with and
may want to join. They influence consumers’ attitudes and behavior. Opinion
leaders are people with expertise in certain areas. Consumers respect such
people and often ask their opinions before they buy goods and services.
Family: Most market researchers consider a person’s family to be one of the
most important influences on their buying behavior.
Write a note on the Internal and External sources of Information.
Ans. The information sources are of two types:
a) Internal sources:
This includes the consumer and his self; recall information in his memory
(comprising information gathered and stored, as well as his experiences, direct
and indirect);
Internal sources seem sufficient when:
- it is a routine purchase
- the product is of low involvement
b) External sources:
This includes:
- Interpersonal communication (family, friends, work peers, opinion leaders
etc.)
- Marketing communication (advertisements, salespeople, company websites,
magazines etc.)
- Other sources (editorials, trade magazines and reports, consumer awareness
programmes on TV, Internet etc.)
External sources are resorted to in cases where:
- past knowledge and experience is insufficient.
- the product is of high involvement and the risk of making a wrong decision is
high.

Discuss the steps of personal selling process.

Ans. Selling is a process involving the interaction between a potential buyer
and a person hired by a company to sell its product to potential buyers. Sales
is a recognized business profession, and ranges from a shoe salesman to an
investment banker who manages company stock with billions of dollars at
stake.
Selling can be two types-Personal selling (direct selling, service selling,
industrial selling) and Distributive selling (retail selling, channel selling,
industrial selling).
The steps of selling process-
1. Prospecting: This is the process of finding qualified prospects who can and
will buy and pay for your service within a reasonable period of time.
The key to excellent prospecting is to think through exactly what your product
or service does to improve the life or work of your customer. Then seek out
people in the market place who want and need that benefit or result. When you
meet with that prospective customer, instead of talking, you ask a series of
questions to determine in advance if this person is a “prospect” or merely a
“suspect”.
2. Pre-approach: In this step, a salesperson has to do his homework about the
product before going to approach a potential customer. A good salesperson
researches his product, familiarizes himself with the customer’s needs and
want, and tries to learn the relevant background information about the
individual or business.
3. Approach: It is the first time face-to-face interaction a salesperson will have
with the potential customer. A salesperson needs to identify the need of the
customer and convince the prospect how the need will be fulfilled. He also
needs to develop a rapport with the customer.
4. Presentation: It’s a demonstrating process to show the prospects how the
product can meet their needs and wants. It might involve a tour (in case of real
estate), a product demonstration, videos, power-point presentations, or letting
the customer actually experience the product.
5. Handling objections: After the salesperson makes his sales presentation,
it’s natural for the customer to have some hesitations or concerns called
objections. It’s an important part of selling process. Good salesperson look at
objections as opportunities to further understand and respond to customers’
needs.
6. Closing the sales: Closing the sales indicates the final purchasing decision.
If the customer is convinced with the product, he will place the demand for it.
7. Following up: The follow-up is an important part of assuring customer
satisfaction, retaining customers and prospecting for new customers. It
alleviates any potential post-purchase cognitive dissonance. Good follow-up
helps ensure additional sales, customers referrals and positive reviews.

What is up-market and down-market stretch?

Ans. Up – market stretch--
Up-market stretch is a product line stretching strategy in which a company
forays into the economically upper segment of a market. The objective is to
increase the market share, earn higher margins, or attain a full-range
manufacturer status. Nokia had introduced N series, E series variants as part
of such strategy.
Down – market stretch--
Down-market stretch is a kind of product line extension wherein a company
introduces lower-priced products to cater to a new consumer group. The firm
stretches down if it foresees massive growth opportunities in the lower
segment; or if it is attacked by a lower-segment competitor and wants to
counterattack the threat; or if it feels its business segment is saturated and
has limited scope for growth. Samsung introduced Samsung Guru and Kodak
introduced Kodak Funtime versions as part of such strategy.

Discuss Product Life Cycle (PLC) and related strategies.

Ans. A new product progresses through a sequence of stages from introduction
to growth, maturity, and decline. This sequence is known as the product life
cycle (PLC) and is associated with changes in the marketing situation, thus
impacting the marketing strategy and the marketing mix.
The product revenue and profits can be plotted as a function of the life-cycle
stages as shown--
Introduction Stage:
In the introduction stage, the firm seeks to build product awareness and
develop a market for the product. The impact on the marketing mix is as
follows:
- Product branding and quality level is established and intellectual
property protection such as patents and trademarks are obtained.
- Pricing may be low penetration pricing to build market share rapidly, or
high skim pricing to recover development costs.
- Distribution is selective until consumers show acceptance of the
product.
- Promotion is aimed at innovators and early adopters. Marketing
communications seeks to build product awareness and to educate
potential consumers about the product.
Growth Stage:
In the growth stage, the firm seeks to build brand preference and increase
market share.
- Product quality is maintained and additional features and support
services may be added.
- Pricing is maintained as the firm enjoys increasing demand with little
competition.
- Distribution channels are added as demand increases and customers
accept the product.
- Promotion is aimed at a broader audience.
Maturity Stage:
At maturity, the strong growth in sales diminishes. Competition may appear
with similar products. The primary objective at this point is to defend market
share while maximizing profit.
- Product features may be enhanced to differentiate the product from that
of competitors.
- Pricing may be lower because of the new competition.
- Distribution becomes more intensive and incentives may be offered to
encourage preference over competing products.
- Promotion emphasizes product differentiation.
Decline Stage:
As sales decline, the firm has several options:
- Maintain the product, possibly rejuvenating it by adding new features
and finding new uses.
- Harvest the product - reduce costs and continue to offer it, possibly to a
loyal niche segment.
- Discontinue the product, liquidating remaining inventory or selling it to
another firm that is willing to continue the product.
The marketing mix decisions in the decline phase will depend on the selected
strategy. For example, the product may be changed if it is being rejuvenated, or
left unchanged if it is being harvested or liquidated. The price may be
maintained if the product is harvested, or reduced drastically if liquidated.
Explain Meta – Market.
Ans. Termed by Mohan Swaney, it implies a cluster of complementary goods
and services that are closely related to the manufacturing of a product, but
spread across different industries. For example, the automobile metamarket
includes the auto part manufacturers, service shops, new and old car dealers,
financing and insurance companies, auto magazines and websites etc.

Explain Guerilla Marketing.

Ans. Termed by J C Levinson, it is an advertisement strategy that uses
unconventional techniques and surprise elements to promote a brand. Unlike
in traditional advertising, the costs are much lesser and calls for creativity. The
objective is to create high recall and induce social buzz. An example is the
Happiness machine campaign by Coca Cola.