[6380]-5004 F.Y.M.B.A.

104 - GC - 04: BASICS OF MARKETING (2024 Pattern) (Semester – I)

Q1) Solve any five

a) Define ‘Customer loyalty’ with example.

Ans: Customer loyalty refers to a customer’s consistent preference to buy products or services from the same
company over time. Loyal customers repeat purchases and often recommend the brand to others because they
trust its quality and value.

Example: A person who repeatedly buys from the same clothing brand like Raymond because they are satisfied
with its quality shows customer loyalty.

b) List down the ‘5 A’s ‘of customer adaption process.

Ans: The five A’s that describe the stages a customer goes through in adopting a product are:

1. Awareness – Customer becomes aware of the product.

2. Appeal – Customer develops interest or liking for the product.
3. Ask – Customer seeks more information or inquiries about the product.
4. Act – Customer tries or purchases the product.
5. Advocacy – Customer is satisfied and recommends the product to others.

c) Identify the major forces of ‘Micro Environment’

Ans: The main forces that directly affect a company’s marketing activities are:

1. Customers
2. Competitors
3. Suppliers
4. Marketing Intermediaries
5. Publics
6. Company (Internal Environment – employees, management)

d) Recall the meaning of ‘Consumerization’ with suitable example.

Consumerization –Consumerization refers to the trend where products, technologies, or services designed for
personal/consumer use start influencing and entering business or organizational use. It shows how consumer
preferences shape business practices.
Example:Employees using their personal smartphones or laptops (like iPhones or Android devices) for office work
is an example of consumerization.

e) Define the term ‘Market share’ with example.

Ans: Market share refers to the percentage of total sales in a market that is controlled by a particular company
or brand. It shows how much of the market a company holds compared to its competitors.

Example:If the total smartphone market sells 100 lakh units and Samsung sells 25 lakh units, then Samsung’s
market share is 25%.
f) Memorize the term ‘Niche Marketing’.

Ans: Niche marketing refers to focusing on a specific, well-defined segment of the market with unique needs. The
company tailors its products and marketing efforts to serve this small, specialized group better than competitors.

g) Explain ‘Brick & Click Model’.

Ans: The Brick & Click Model is a business model where a company operates both offline physical stores (brick) and
online platforms (click) at the same time. It allows customers to shop in-store or online, providing convenience,
wider reach, and better customer service. This model combines the advantages of traditional retail with e-commerce
for improved sales and customer satisfaction.

h) Recollect the meaning of ‘Moment of Truth (MOT)’.

Ans: Moment of Truth (MOT): Moment of Truth refers to the critical point when a customer first interacts with a
product, service, or brand, and forms an impression about it. It is the moment that can positively or negatively
influence the customer’s decision to buy or continue using the service.

Q2) Solve any two:

a) Compare and Contrast ‘Show -rooming and Web-rooming’.

Ans: Show-rooming

 Customers visit a physical store to see, touch, or test a product.

 After checking the product in-store, they purchase it online, usually to get a lower price.
 Physical stores become display centers, but the sale happens on e-commerce sites.
 Retailers may experience loss of sales due to online price competition.
 Common in categories like electronics, mobiles, and appliances.

Web-rooming

 Customers research products online (features, reviews, prices).

 After comparing options digitally, they visit a physical store to buy the product.
 Stores benefit from foot traffic and immediate sales.
 Attractive for customers who want instant possession, product assurance, and no delivery wait.
 Common for apparel, footwear, cosmetics, and furniture.

Comparison Table:

Basis Show-rooming Web-rooming

Starting Point Physical store Online research
Where Purchase Happens Online Physical store
Customer Intention Test offline → Buy online Research online → Buy offline
Retailer Impact Can reduce physical store sales Increases physical store sales
Customer Benefit Lower online prices Instant purchase, product assurance
Conclusion: Show-rooming shifts buying from offline to online, while web-rooming drives customers from online
research to offline buying. Both behaviors affect retail strategies in the omni-channel environment.

b) Illustrate the ‘Functions of Marketing Manager’ with suitable example.

Ans: A Marketing Manager performs several functions to plan, promote, and deliver products that satisfy customer
needs. The major functions are:

1. Market Research: The marketing manager collects and analyses information about customer preferences,
competitors, and market trends.
Example: Conducting a survey to understand why customers prefer one smartphone brand over another.

2. Product Planning and Development: Deciding the product features, design, quality, and packaging based on
customer needs.
Example: Introducing a new eco-friendly packaging for a skincare product after identifying customer demand for
sustainable products.

3. Pricing: Setting an appropriate price by considering cost, competition, and customer perception of value.
Example: Offering introductory pricing for a new laptop model to attract early buyers.

4. Promotion: Selecting the right promotional mix (advertising, sales promotion, digital marketing) to create
awareness and stimulate sales.
Example: Launching a social media campaign and festival discount offer for a new clothing line.

5. Distribution (Place Management): Choosing suitable channels of distribution to ensure the product reaches
customers on time and in good condition.
Example: Partnering with e-commerce platforms and local retailers to increase product availability.

6. Sales Management: Managing the sales force, setting targets, monitoring performance, and ensuring customer
satisfaction.
Example: Conducting sales training for employees before launching a new car model.

7. After-Sales Service: Handling complaints, offering warranties, and ensuring customer loyalty.
Example: Providing free maintenance service for one year after purchasing an air-conditioner.

Conclusion: A marketing manager performs multiple interconnected functions—from research to after-sales

service—to deliver value to customers and achieve organizational goals.

c) Demonstrate the criteria for effective segmentation with suitable example.

Ans: Market segmentation is dividing a market into distinct groups of consumers with similar needs. For
segmentation to be effective, it should satisfy the following criteria:

1. Measurable: The size, purchasing power, and characteristics of the segment must be quantifiable.
Example: A smartphone company identifies a segment of 18–25-year-old students in urban areas and measures
their buying capacity.

2. Accessible: The segment should be reachable and serviceable through marketing channels.
Example: A cosmetic brand targets women aged 20–35 and reaches them via online platforms and retail stores.
3. Substantial: The segment must be large enough to be profitable.
Example: Targeting fitness enthusiasts for premium protein supplements, ensuring enough demand for profitable
sales.

4. Differentiable: Segments should respond differently to marketing strategies and be distinct from each other.
Example: Young adults prefer trendy clothing, while middle-aged consumers prefer comfort; marketing messages
differ accordingly.

5. Actionable: The company must be able to design and implement marketing strategies for the segment.
Example: Launching a student discount program on laptops, which the company can effectively manage through
online sales channels.

Conclusion: Effective segmentation ensures that marketing efforts are precise, efficient, and profitable, allowing
companies to target the right customers with the right products.

Q3) Solve any one

a) A company is planning to launch ‘A new clothing line’ for festival season develop a Segmentation, targeting
and positioning strategy for Indian market.

1. Segmentation: Market segmentation divides the market into distinct groups based on shared characteristics. For
India’s festival clothing market:

a) Demographic Segmentation:

 Age: 18–35 years (young adults & working professionals)

 Gender: Male & Female
 Income: Middle to upper-middle class (₹25,000 – ₹1,00,000 per month)

b) Psychographic Segmentation:

 Lifestyle: Fashion-conscious, trend followers, social media active

 Personality: People who enjoy celebrating festivals with style

c) Behavioral Segmentation:

 Occasion-based: Festival buyers (Diwali, Eid, Navratri, Christmas)

 Benefits sought: Stylish, comfortable, and affordable festive wear

d) Geographic Segmentation:

 Urban areas: Tier-1 and Tier-2 cities (Mumbai, Delhi, Pune, Bangalore, Hyderabad)
 Regional preferences: Ethnic wear in North & West India, fusion wear in South & East India

2. Targeting: After segmenting, select the segments with highest potential:

 Primary Target Market:

o Age 20–35, urban youth and young professionals
o Fashion-conscious, active on social media
o Middle to upper-middle income
o Interested in stylish ethnic/fusion wear for festivals
 Secondary Target Market:
o Families buying festive outfits for all members
o Focus on comfort and affordability

Targeting Strategy:Differentiated marketing – offer different designs and price ranges for young adults vs. families.

3. Positioning: Position the brand in consumers’ minds as the go-to festive clothing brand combining style,
affordability, and cultural relevance.

Positioning Statement: “For urban Indians who celebrate festivals with style, [Brand Name] offers trendy,
comfortable, and affordable festive wear that blends tradition with modern fashion.”

Key Positioning Strategies:

 Unique designs: Fusion of traditional and contemporary trends

 Quality & comfort: Soft fabrics suitable for long festival wear
 Affordability: Middle to upper-middle-class pricing
 Digital engagement: Use Instagram, Facebook, and influencer collaborations to appeal to young audience.

This STP approach ensures the clothing line is well-targeted, culturally relevant, and positioned to attract urban
Indian consumers during festival seasons.

b) As a marketer, analyses the marketing environment for a company introducing an ‘Electric vehicle in Indian
market. Make Suitable assumptions to justify your approach.

Ans: Marketing environment consists of micro (internal) and macro (external) factors that affect a company’s
ability to serve customers.

1. Micro Environment: Factors close to the company that directly impact its operations:

a) Company/Internal Factors:

 Strong R&D to develop EVs with long battery life

 Ability to provide after-sales service & charging infrastructure partnerships
 Skilled workforce and investment in green technology

b) Suppliers:

 Battery suppliers (Lithium-ion or Lithium-iron)

 Component manufacturers (motors, EV electronics)
 Assumption: The company has secured reliable supplier contracts

c) Competitors:

 Indian competitors: Tata Motors (Nexon EV), Mahindra (eVerito)

 Global players entering India: Hyundai, MG Motors
 Assumption: Competition is increasing; differentiation needed through range, price, or features
d) Intermediaries:

 Dealerships for EV sales & service

 Online platforms for bookings & promotions
 Charging station partners for convenience

e) Customers:

 Target: Urban professionals, tech-savvy, environmentally conscious

 Assumption: Customers are price-sensitive but willing to pay for sustainable mobility

2. Macro Environment (PESTEL Analysis)

External factors that influence the business:

a) Political:

 Government incentives for EVs (FAME II scheme, tax rebates)

 Policies promoting clean energy & reduced carbon emissions

b) Economic:

 Rising fuel prices make EVs cost-effective in long term

 Growing middle class with disposable income

c) Social:Increasing environmental awareness ,Urban population growth leading to demand for compact and clean
vehicles

d) Technological:

 Advancements in battery technology (longer range, faster charging)

 IoT and AI-enabled EV features (smart navigation, remote diagnostics)

e) Environmental:

 Pollution control regulations in metro cities

 Need to reduce carbon footprint driving EV adoption

f) Legal:

 Safety regulations for EVs

 Compliance with emission standards

Assumptions

1. India’s EV market is growing due to government incentives.

2. Urban middle-class consumers are willing to adopt EVs for sustainability.
3. Charging infrastructure is expanding in major cities.
4. Company can invest in marketing, technology, and partnerships.
Conclusion: The company introducing an EV in India must leverage government support, technological innovation,
and rising eco-conscious consumer trends, while addressing challenges like competition, price sensitivity, and
infrastructure. A thorough understanding of micro and macro environment will help in strategic decision-making
and positioning the EV successfully in India.

Q4) Solve any one:

a) Explain the buying behavior process for a traveler buying a Vacation Package via popular Online Portal.

Ans: Buying Behavior Process for a Traveler Buying a Vacation Package via Online Portal

The buying behavior of a traveler can be explained using the 5-stage consumer buying process:

1. Problem/Need Recognition

 The traveler realizes a need or desire to travel—for leisure, adventure, relaxation, or family holiday.
 Triggers may include:
o Work stress, holidays, festival seasons, or social media inspiration.
o The traveler identifies the need for a complete vacation package (flights, hotels, sightseeing).

2. Information Search

 The traveller starts looking for options online.

 Sources include:
o Popular travel portals like MakeMyTrip, Expedia, or Yatra.
o Reviews, ratings, blogs, social media, and recommendations from friends/family.
 They compare destinations, costs, itineraries, hotel ratings, and travel dates.

3. Evaluation of Alternatives

 The traveler compares multiple vacation packages to select the best fit.
 Factors considered:
o Price, inclusions (flights, hotel, meals, sightseeing), duration, and flexibility.
o Special offers, discounts, or loyalty points.
o Trustworthiness of the portal and reviews from previous travelers.

4. Purchase Decision

 After evaluating options, the traveller makes the decision to buy a specific package.
 Steps include:
o Selecting dates and package type.
o Booking online via secure payment gateways.
o Receiving confirmation, e-tickets, and itinerary from the portal.

5. Post-Purchase Behavior

 After the vacation, the traveler evaluates their experience.

 Factors influencing post-purchase behavior:
o Satisfaction with service quality, hotel, sightseeing, and overall convenience.
o Writing reviews or ratings on the portal.
 o Recommending the portal to others or becoming a repeat customer.

Conclusion: The buying behavior for online vacation packages is influenced by convenience, trust, price sensitivity,
and peer reviews. Online portals facilitate easy search, comparison, and secure booking, shaping the modern
traveler’s decision-making process.

b) Shankar has visited Online Store of a famous Electronic goods Retailer to know about various brands of
‘Noise Cancellation Headphones’. Discover the various stages of consumer buying behavior he will go
through while choosing a Noise Cancellation Headphone.

Ans:: Consumer Buying Behavior Stages for Shankar Buying Noise Cancellation Headphones

When Shankar visits an online store to explore Noise Cancellation Headphones, he goes through the following
stages of the consumer buying process:

1. Problem/Need Recognition

 Shankar realizes the need for a Noise Cancellation Headphone due to:
o Desire for uninterrupted music or work experience.
o Background noise at home or office.
o Need for better sound quality while traveling.
 This is the stage where Shankar identifies what problem the headphone will solve.

2. Information Search

 Shankar begins searching for information about headphones online.

 Sources include:
o The online store’s product listings and specifications.
o Brand websites and product videos.
o Customer reviews and ratings.
o Social media, expert blogs, and YouTube comparisons.
 He collects information about brands, models, features, prices, and warranty.

3. Evaluation of Alternatives

 Shankar compares different headphones before making a choice.

 Factors he considers:
o Brand reputation (Sony, Bose, JBL, etc.).
o Features like active noise cancellation, battery life, comfort, wireless connectivity.
o Price and discounts.
o User reviews and expert ratings.
 He may shortlist 2–3 options that meet his requirements.

4. Purchase Decision

 After evaluating alternatives, Shankar decides which headphone to buy.

 He proceeds to:
o Add the selected product to cart.
o Make an online payment.
o Receive an order confirmation and expected delivery date.
  Trust in the online retailer and ease of purchase play a key role here.

5. Post-Purchase Behavior

 After receiving and using the headphone, Shankar assesses his satisfaction:
o Does it meet expectations in noise cancellation, sound quality, and comfort?
o He may write reviews, share experiences on social media, or recommend it to friends.
 Positive experience can lead to brand loyalty and repeat purchases.
 Negative experience may lead to complaints or returns.

Conclusion: Shankar’s buying behavior for Noise Cancellation Headphones follows a logical 5-stage process:
recognizing the need, searching for information, evaluating alternatives, making the purchase, and post-purchase
evaluation. Online stores make this process convenient with detailed product info, comparisons, and customer
feedback.

Q5) Solve any one:

a) Every product goes through distinct stages of the Product Life Cycle (PLC), each presenting unique challenges
and opportunities for marketers across the Product Life Cycle. Formulate strategies that could be employed for
‘Sports bicycle’ in Indian Market. to ensure the product’s success in India.

Ans : Product Life Cycle (PLC) Strategies for Sports Bicycle in Indian Market

The Product Life Cycle (PLC) describes the stages a product goes through from introduction to decline. Each stage
requires specific marketing strategies.

1. Introduction Stage

 Objective: Create awareness and trial among target customers.

 Challenges: Low awareness, high costs, uncertain demand.
 Strategies for Sports Bicycle in India:
o Promotion: Launch campaigns via social media, sports events, and adventure clubs.
o Distribution: Start with major metro cities and premium bike stores.
o Pricing: Penetration pricing to attract early adopters or skimming for premium models.
o Education: Highlight benefits like fitness, performance, and modern design.

2. Growth Stage

 Objective: Increase market share and brand preference.

 Challenges: Growing competition, need to differentiate.
 Strategies:
o Product: Introduce variants (mountain bikes, road bikes) and accessories.
o Promotion: Endorsements by sports personalities; sponsorships in cycling events.
o Distribution: Expand to tier-2 cities, e-commerce portals.
o Pricing: Competitive pricing, bundle offers with helmets and gear.

3. Maturity Stage

 Objective: Maximize profit and defend market share.

 Challenges: Market saturation, intense competition.
  Strategies:
o Product: Add innovative features (lightweight frame, smart tech, eco-friendly materials).
o Promotion: Loyalty programs, seasonal offers, and festivals discounts.
o Distribution: Strengthen dealer network; tie-ups with sports clubs and gyms.
o Pricing: Maintain competitive pricing; introduce EMI schemes for affordability.

4. Decline Stage

 Objective: Minimize costs or rejuvenate the product.

 Challenges: Falling demand, obsolete features.
 Strategies:
o Product: Revamp design or introduce new technology to revive interest.
o Promotion: Target niche segments like cycling enthusiasts or export markets.
o Pricing: Discounts, clearance sales, or bundling with accessories.
o Distribution: Reduce low-performing outlets and focus on profitable channels.

Conclusion: By adopting stage-wise PLC strategies—awareness creation, differentiation, product innovation, and
market rejuvenation—sports bicycles can achieve sustained growth and profitability in the Indian market.

b) Formulate the Marketing Mix strategy for a company planning to launch an ‘Online Food delivery app’ which
will ensure food delivery in 10 Minutes time. Make Suitable assumptions to justify your approach.

Ans: Marketing Mix (4Ps) Strategy for Online Food Delivery App in India

Assumption: The app targets urban young professionals and students, focusing on fast, convenient, and hygienic
food delivery within 10 minutes.

1. Product

 Core Offering: Quick delivery of fresh, hygienic, and high-quality food from a variety of restaurants.
 Features:
o Real-time order tracking.
o Multiple cuisines (Indian, continental, fast food, healthy options).
o Offers subscription plans for frequent users.
o In-app chat support for order issues.
 Packaging: Eco-friendly, spill-proof, and branded packaging to maintain food quality during 10-minute
delivery.

2. Price

 Pricing Strategy: Competitive and dynamic pricing to attract early adopters.

o Delivery Fee: Minimal, with free delivery for subscription members or first-time users.
o Discounts & Offers: Festival discounts, referral rewards, and loyalty points.
o Premium Option: Express delivery fee for ultra-fast orders during peak hours.

3. Place (Distribution)

 Urban-focused strategy: Start in metro cities with high population density.

 Delivery Infrastructure:
o Strategically located cloud kitchens to reduce delivery time.
 o Fleet of trained delivery personnel using bicycles, scooters, or e-bikes for speed.
o Tie-ups with local restaurants for pre-prepared meals ready for quick dispatch.
 App & Online Platform: Available on Android, iOS, and website with seamless UX.

4. Promotion

 Awareness & Engagement:

o Social media campaigns (Instagram reels, YouTube ads) highlighting 10-minute delivery USP.
o Influencer marketing, especially food bloggers and lifestyle influencers.
o First-order discounts and referral programs to encourage trial.
 Retention:
o Push notifications for offers, loyalty rewards, and personalized recommendations.
o Gamification features like “Fastest Eater” badges to engage users.

Conclusion: A well-coordinated 4Ps strategy—focusing on fast, high-quality food (Product), affordable and flexible
pricing (Price), optimized urban delivery infrastructure (Place), and strong digital promotions (Promotion)—will
help the app successfully penetrate the Indian market and differentiate itself from competitors like Zomato and
Swiggy.

MARKETING MIX STRATEGY

(Online Food App)
|
-------------------------------------------------
| | |
PRODUCT PRICE PLACE PROMOTION
| | | |
- 10-min delivery - Competitive - Urban metro - Social media campaigns
- Multiple cuisines & dynamic pricing areas - Influencer marketing
- Real-time tracking - Free delivery - Cloud kitchens - Referral & loyalty programs
- Subscription plans for first orders - Fleet of bikes - Push notifications
- Eco-friendly - Festival/peak & scooters - Gamification & rewards
packaging discounts
 [6430]-504 F.Y. M.B.A.
BM - 504 - MJ - 104 - GC - 04 : BASICS OF MARKETING (2024 Pattern) (Semester - I)

Q1) Answer any Five (2 marks each):

a) Define the term ‘Marketing Myopia’-Marketing Myopia refers to a short-sighted approach of firms, where they
focus only on selling their existing products instead of identifying and satisfying customer needs and adapting
to changing market conditions.
b) What is the ‘Zero Moment of Truth (ZMOT)’?

Zero Moment of Truth (ZMOT) refers to the stage in the buying process where consumers search online for
information, read reviews, compare products, and form opinions before making the actual purchase decision.

c) List down the ‘four major forces of Macro environment’?

The four major forces of the Macro Environment are:

1. Economic forces
2. Political and legal forces
3. Social and cultural forces
4. Technological forces

d) How showrooming is different from Web rooming?

Showrooming and Webrooming differ as follows:

 Showrooming: Customers inspect products in physical stores but purchase them online, usually at lower prices.
 Webrooming: Customers search products online first and then buy them from physical stores.

e) Define ‘Forrester’s Social Technographics segmentation’.

Forrester’s Social Technographics Segmentation is a framework that classifies consumers based on their level of
participation in social media, such as creators, critics, collectors, joiners, spectators, and inactives.

f) Define the ‘Customer Satisfaction, and Customer Delight.

 Customer Satisfaction: It refers to the degree to which a product or service meets customer expectations.
 Customer Delight: It refers to a situation where a product or service exceeds customer expectations, resulting
in high pleasure and loyalty.

g) Recall the components of ‘Holistic Marketing’.

The components of Holistic Marketing are:

1. Relationship Marketing
2. Integrated Marketing
3. Internal Marketing
4. Performance Marketing
g) What are the ‘Four C’s’ of ‘Connected Marketing Mix’.

The Four C’s of the Connected Marketing Mix are:

1. Co-creation
2. Currency
3. Communal activation
4. Conversation

Q2) Attempt any Two (5 marks)

a) Explain how Indian festival like Diwali influence marketing strategies. Support your answer with examples.

Influence of Indian Festivals like Diwali on Marketing Strategies

Indian festivals, especially Diwali, have a significant impact on marketing strategies due to increased consumer
spending, emotional attachment, and cultural importance.

1. Increase in Consumer Demand: During Diwali, consumers spend more on clothing, electronics, gold,
automobiles, sweets, and home décor. Companies launch special festive collections and attractive offers to
capture this demand.
2. Festive Pricing and Sales Promotions: Marketers introduce discounts, cashback offers, exchange schemes, and
EMI facilities. For example, Amazon and Flipkart run Diwali sale campaigns with heavy discounts on electronics.
3. Festive Advertising and Emotional Appeal: Advertisements focus on family bonding, happiness, gifting, and
tradition to connect emotionally with consumers. Brands like Tata Tea and Cadbury use Diwali themes to
strengthen brand recall.
4. Special Packaging and Product Customization:Companies design festive packaging and limited-edition
products. For instance, Cadbury Celebrations offers special Diwali gift packs.
5. Distribution and Availability Strategies: Firms increase stock levels and improve distribution to ensure product
[Link] companies like Maruti Suzuki introduce Diwali offers and ensure faster deliveries.

Conclusion: Thus, festivals like Diwali influence marketing strategies by shaping product design, pricing, promotion,
and distribution, helping firms maximize sales and customer engagement during the festive season.

c) Outline the concept of ‘Market Potential and Market share’ with relevant examples.

Concept of Market Potential and Market Share

1. Market Potential:Market potential refers to the maximum possible sales of a product or service in a given
market, assuming ideal conditions such as full demand and effective marketing efforts.
Example: The market potential for electric two-wheelers in India is high due to rising fuel prices, government
subsidies, and environmental awareness.
2. Market Share:Market share represents the portion or percentage of total market sales captured by a particular
firm or brand during a specific period. It shows a company’s competitive position in the market.
Example: If Samsung sells 30 million smartphones in a market where total sales are 100 million units, its market
share is 30%.
3. Relationship between Market Potential and Market Share:Market potential indicates how big the opportunity
is, while market share indicates how much of that opportunity a firm has captured.

Conclusion:Thus, market potential helps firms assess growth opportunities, whereas market share helps evaluate
market performance and competitiveness.
d) Illustrate the concept of ‘Omni channel Consumer Behaviour’ with real life examples.

Concept of Omni-channel Consumer Behaviour

Omni-channel consumer behaviour refers to the integrated and seamless shopping behaviour of customers, where
they use multiple channels—online, mobile apps, social media, and physical stores—simultaneously during their
purchase journey.

1. Use of Multiple Touchpoints:Consumers search information online, visit stores, use mobile apps, and interact
on social media before making a purchase.
Example: A customer checks product reviews on Amazon, compares prices on a mobile app, and then visits a
Croma store to buy the product.
2. Seamless Shopping Experience:Customers expect consistency in price, offers, and service across all channels.
Example: Reliance Retail allows customers to order online and pick up products from nearby stores.
3. Channel Switching:Consumers easily switch between channels depending on convenience.
Example: A shopper browses clothes on Myntra, tries similar products at a physical store, and completes the
purchase through the app using digital payments.
4. Integration of Digital and Physical Stores:Brands integrate technology in stores to enhance experience.
Example: IKEA provides online catalogs, mobile apps, and in-store assistance to support customer decisions.
5. Personalized Experience:Data from multiple channels is used to personalize offers.
Example: Flipkart sends customized notifications based on online searches and previous purchases.

Conclusion:Thus, omni-channel consumer behaviour reflects modern consumers’ demand for a convenient,
connected, and consistent shopping experience across all channels.

Q3) Answer any One

a) ‘A fast-food chain’ is planning to expand in the Indian market. Identify suitable customer segments, explain
your targeting approach, and propose an effective positioning strategy tailored to the Indian market.

Expansion Strategy of a Fast-Food Chain in the Indian Market

A fast-food chain planning to expand in India must follow the STP approach – Segmentation, Targeting, and
Positioning, keeping in mind India’s cultural diversity, food habits, and price sensitivity.

1. Customer Segmentation:The Indian market can be segmented on the following bases:

a) Demographic Segmentation

 Age: Children, teenagers, young adults

 Income: Middle-class and upper-middle-class consumers
 Occupation: Students, working professionals, families

b) Geographic Segmentation

 Urban and semi-urban areas

 Metro cities and Tier-1 / Tier-2 cities
c) Psychographic Segmentation

 Lifestyle: Busy, convenience-oriented consumers

 Attitude: Modern, western-influenced, brand-conscious

d) Behavioral Segmentation

 Occasion: Eating out, quick meals, celebrations

 Benefits sought: Taste, convenience, affordability

2. Targeting Approach:The suitable targeting strategy is Differentiated Targeting, focusing on multiple segments:

 Young adults and students seeking affordable, tasty, and quick meals
 Working professionals looking for convenience and quick service
 Families preferring hygienic and value-for-money food options

The chain can offer combo meals, value menus, and family packs to attract different segments.

3. Positioning Strategy:The fast-food chain should adopt a value-based and localized positioning strategy:

 Core Positioning Statement:

“Delicious, hygienic, and affordable fast food with an Indian taste.”

Key Positioning Elements:

 Menu customization with Indian flavors (e.g., paneer burgers, spicy wraps, vegetarian options)
 Affordable pricing suited to Indian consumers
 Emphasis on quality, hygiene, and quick service
 Promotion through digital marketing, food delivery apps, and youth-oriented advertising

Example: Brands like McDonald’s India successfully position themselves by offering McAloo Tikki and Maharaja
Mac, adapting to Indian preferences.

Conclusion: By carefully segmenting the Indian market, adopting a differentiated targeting approach, and
positioning itself as a localized, affordable, and hygienic fast-food brand, the chain can achieve successful
expansion and long-term growth in India.

Expansion Strategy of a Fast-Food Chain in the Indian Market

To successfully expand in the Indian market, a fast-food chain must adopt a clear Segmentation–Targeting–
Positioning (STP) strategy suited to Indian consumer preferences and cultural diversity.

1. Customer Segmentation: The Indian market can be segmented on the following bases:

1. Demographic Segmentation:
o Age: Children, teenagers, young adults, and working professionals
o Income: Middle-income and upper-middle-income groups
o Family size: Nuclear families and students
2. Geographic Segmentation:
o Urban and semi-urban cities
 o Tier-I and Tier-II cities with growing fast-food culture
3. Psychographic Segmentation:
o Lifestyle-oriented, convenience-seeking, and modern consumers
o Youth preferring western food with Indian taste
4. Behavioral Segmentation:
o Frequent eat-out customers
o Price-sensitive consumers looking for value meals

2. Targeting Approach:The fast-food chain should adopt a differentiated targeting strategy, focusing on:

1. Urban youth and students:

Due to their preference for quick service, affordable pricing, and social hangouts.
2. Working professionals:
Looking for quick, hygienic, and convenient meals during breaks or after work.
3. Families:
Especially during weekends and festivals, with kid-friendly menus and combo offers.

3. Positioning Strategy:An effective positioning strategy should be based on “Affordable, Quick, and Indianized
Taste”.

1. Product Adaptation:
o Offer vegetarian and non-vegetarian options
o Include Indian flavors (e.g., paneer burgers, spicy sauces, masala wraps)
2. Price Positioning:
o Affordable pricing with value meals and combo offers
o Special student discounts
3. Promotion:
o Use digital marketing, social media influencers, and festival offers
o Highlight hygiene, taste, and value for money
4. Place (Distribution):
o Presence in malls, high-street locations, and online delivery platforms like Zomato and Swiggy

Conclusion:By selecting appropriate customer segments, using a differentiated targeting approach, and positioning
itself as a value-for-money fast-food brand with Indian taste, the fast-food chain can successfully expand and
compete in the Indian market.

b) As a marketer, analyse the marketing environment for a ‘New Travel and Tourism Company’ in the Indian
market. Provide relevant examples to illustrate your analysis.

Marketing Environment Analysis for a New Travel and Tourism Company in India

The marketing environment consists of internal, micro, and macro factors that influence a firm’s ability to serve
customers. For a new travel and tourism company in India, understanding these factors is essential for success

1. Micro Environment

1. Company:The company must design customer-centric tour packages, focus on service quality, and use digital
platforms effectively.
Example: Offering customized domestic tour packages for families and honeymooners.
2. Customers:Indian customers include budget travelers, luxury tourists, students, families, and senior citizens.
Example: Millennials prefer online booking and short trips, while families prefer all-inclusive packages.

3. Suppliers:Suppliers include hotels, transport providers, airlines, local guides, and restaurants.
Example: Tie-ups with hotels in Goa, Kerala, or Himachal Pradesh to offer discounted packages.

4. Competitors:The company faces competition from MakeMyTrip, Yatra, IRCTC Tourism, and local travel agents.
Example: Competing by offering niche experiences like eco-tourism or spiritual tourism.

5. Intermediaries:Online travel portals, payment gateways, and travel agents act as intermediaries.
Example: Listing services on platforms like Google Travel or [Link].

2. Macro Environment

1. Economic Environment:Rising disposable income and a growing middle class support tourism growth.
Example: Increased domestic travel after economic recovery boosts weekend tourism.

2. Demographic Environment:India has a young population and increasing urbanization, creating demand for
travel.
Example: Young professionals opting for adventure trips and backpacking tours.

3. Socio-Cultural Environment:Growing interest in leisure travel, wellness tourism, and religious tourism.
Example: High demand for Ayodhya, Varanasi, Tirupati, and Kedarnath tours.

4. Technological Environment:Digitalization has transformed tourism marketing and booking.

Example: Use of mobile apps, online payments, virtual tours, and AI-based recommendations.

5. Political and Legal Environment:Government policies like Incredible India, e-tourist visa, and tourism
infrastructure development encourage tourism.
Example: Simplified visa norms attracting foreign tourists.

6. Natural Environment:India’s diverse geography offers beaches, mountains, deserts, and wildlife tourism, but
sustainability is important.
Example: Promoting eco-friendly tours in Kerala backwaters or North-East India.

Conclusion:The Indian travel and tourism market offers huge opportunities due to favorable economic,
technological, and socio-cultural factors. A new tourism company can succeed by leveraging digital platforms,
offering customized experiences, and aligning with government initiatives, while effectively managing competition
and customer expectations.
 Q4) Answer any One

a) Kavya visits a two-wheeler showroom with her family and realizes the need to upgrade her vehicle for better
features and fuel efficiency. Explain the various stages of consumer buying behavior she would go through in
choosing a two-wheeler.

 Stages of Consumer Buying Behaviour in Choosing a Two-Wheeler

 When Kavya decides to upgrade her two-wheeler for better features and fuel efficiency, she passes through
the following stages of consumer buying behaviour:

1. Need Recognition
 This is the first stage where the consumer realizes a problem or need.
Kavya recognizes the need to upgrade her existing two-wheeler due to poor fuel efficiency, outdated features,
or increased maintenance costs. Family discussions and rising fuel prices may strengthen this need.

 2. Information Search
 After recognizing the need, Kavya searches for information about available options.
She may collect information from showroom visits, company websites, online reviews, advertisements, social
media, friends, and family members.

 3. Evaluation of Alternatives
 At this stage, Kavya compares different brands and models based on important criteria.
Key factors include price, mileage, engine performance, safety features, design, brand reputation, warranty,
and after-sales service.
For example, she may compare Honda Activa, TVS Jupiter, Suzuki Access, and Hero Pleasure.

 4. Purchase Decision
 After evaluating alternatives, Kavya decides which two-wheeler to purchase.
Her decision may still be influenced by family opinions, discounts, finance options, exchange offers, and
salesperson recommendations.
She finalizes the brand, model, color, and dealer.

 5. Purchase:This is the actual buying stage.

Kavya completes the transaction by making payment, choosing loan or EMI options, completing
documentation, and taking delivery of the two-wheeler.

 6. Post-Purchase Behaviour
 After purchase, Kavya evaluates her satisfaction level.
If the vehicle meets expectations in terms of fuel efficiency, comfort, and performance, she experiences
satisfaction and may recommend the brand to others.
If not, she may experience cognitive dissonance and consider alternatives in the future.

 Conclusion:Thus, Kavya’s decision to purchase a two-wheeler involves a systematic process of need

recognition, information search, evaluation, purchase, and post-purchase evaluation, influenced by personal,
social, and economic factors.
c) Himanshu is planning to buy a real estate property for his family in Pune city. Describe the stages of
consumer buying behaviour that Himanshu will likely go through in making this purchase.

Stages of Consumer Buying Behaviour in Purchase of Real Estate Property

Buying a real estate property is a high-involvement and complex buying decision. While planning to buy a house in
Pune for his family, Himanshu will go through the following stages of consumer buying behaviour:

1. Need Recognition:Himanshu realizes the need to purchase a house due to factors such as family expansion,
desire for own house, investment purpose, or rising rental costs. Pune’s growing IT sector and urban development
may also motivate this decision.

2. Information Search:Since real estate is a costly purchase, Himanshu conducts an extensive information search.
He gathers information from real estate websites, property portals (99acres, Magicbricks), brokers,
advertisements, site visits, friends, relatives, and bank officials.

3. Evaluation of Alternatives:At this stage, Himanshu compares various properties and locations.
Evaluation criteria include location (Hinjewadi, Wakad, Kharadi), price, builder reputation, legal clearances,
amenities, connectivity, future appreciation, and safety.
He may also compare ready possession vs under-construction projects.

4. Purchase Decision

After careful evaluation, Himanshu decides on a specific property.

The decision may be influenced by family members’ preferences, availability of home loans, interest rates,
discounts, and negotiation with the builder or seller.

5. Purchase (Transaction)

This stage involves finalizing the deal.

Himanshu pays the booking amount, applies for a home loan, completes legal verification, agreement registration,
stamp duty payment, and signs the sale deed.

6. Post-Purchase Behaviour

After purchase, Himanshu evaluates his satisfaction.

If the property meets expectations regarding location, construction quality, and living comfort, he feels satisfied.
Any issues such as delays, poor construction, or legal complications may cause post-purchase dissonance.

Conclusion:Thus, Himanshu’s real estate purchase follows a systematic consumer buying process, involving careful
evaluation, high involvement, and significant financial and emotional considerations, especially in a city like Pune.
 Q5) Answer any One

a) Every product goes through distinct stages of the Product Life Cycle (PLC), each presenting unique challenges and
opportunities for marketers across the Product Life Cycle. Identify and formulate the strategies for a company
launching an ‘Affordable Android based Dual screen Flip Mobile Handset’ in Indian Market.

Product Life Cycle (PLC) Strategies for an Affordable Android-based Dual Screen Flip Mobile Handset in the Indian
Market

Every product passes through four stages of the Product Life Cycle (PLC)—Introduction, Growth, Maturity, and
Decline. Each stage requires different marketing strategies. For an affordable Android-based dual screen flip
mobile handset in India, the following strategies can be formulated:

1. Introduction Stage

Characteristics:

 Low sales volume

 High promotion costs
 Low consumer awareness
 Limited competition

Marketing Strategies:

1. Product:
o Highlight innovative features like dual screens, flip design, durability, long battery life, and Android OS
o Ensure affordability with essential smart features
2. Price:
o Use penetration pricing to attract price-sensitive Indian consumers
3. Promotion:
o Heavy promotional campaigns through digital media, influencers, tech reviewers, and social media
o Demonstrations in retail stores
4. Place:
o Focus on online platforms (Flipkart, Amazon) and selected urban retail outlets

2. Growth Stage

Characteristics:

 Rapid increase in sales

 Increasing competition
 Growing brand acceptance

Marketing Strategies:

1. Product:
o Improve quality and add software updates, better cameras, and more storage options
2. Price:
o Maintain competitive pricing with limited discounts
 3. Promotion:
o Shift focus from awareness to brand preference and differentiation
4. Place:
o Expand distribution to Tier-II and Tier-III cities

3. Maturity Stage

Characteristics:

 Sales growth slows down

 Intense competition
 Price wars

Marketing Strategies:

1. Product:
o Introduce variants (different colors, RAM options) and value-added features
2. Price:
o Use discounts, exchange offers, and EMI schemes
3. Promotion:
o Emphasize value for money, reliability, and after-sales service
4. Place:
o Ensure wide availability through multi-brand retail stores and telecom outlets

4. Decline Stage

Characteristics:

 Declining sales
 Technology becomes outdated
 Reduced profitability

Marketing Strategies:

1. Product:Reduce product line and focus on basic variants

2. Price:Offer clearance discounts to liquidate stock
3. Promotion:Minimal promotional spending, focus on reminder advertising
4. Place:Limit distribution to selected channels

Conclusion:By adopting stage-wise PLC strategies, the company can effectively manage product performance. For
the Indian market, focusing on affordability, innovation, wide distribution, and strong promotion at each PLC stage
will help the dual-screen flip handset achieve long-term success.
b) Design a comprehensive marketing mix for a company that promises to deliver ‘Beauty and Personal care’
products to customers within 30 minutes. Make assumptions to justify your approach.

Marketing Mix for a 30-Minute Beauty & Personal Care Delivery Company

Assumptions:

 The company operates in urban Indian cities (Tier-I and Tier-II).

 Customers value speed, convenience, and reliability.
 Orders are placed through a mobile app/website similar to quick-commerce models.

1. Product

 Wide range of beauty and personal care products: skincare, haircare, cosmetics, grooming products, hygiene
essentials.
 Products from popular Indian and international brands along with private-label essentials.
 Assured 100% genuine products, proper packaging, and easy returns.
 Curated kits (daily care kits, festival grooming kits).

2. Price

 Competitive pricing similar to retail MRP.

 Small convenience or delivery fee for 30-minute service.
 Discounts for first-time users, combo offers, and loyalty rewards.
 Subscription plans for frequent users with free or discounted delivery.

3. Place (Distribution)

 Operate through dark stores / micro-fulfillment centers located within residential clusters.
 Strong last-mile delivery using two-wheelers and local delivery partners.
 Coverage initially in high-demand areas with gradual city expansion.

4. Promotion

 Digital-first promotion through social media, Google ads, and influencer marketing.
 Highlight USP: “Beauty delivered in 30 minutes”.
 Festival offers, referral programs, and push notifications.
 Tie-ups with beauty influencers and salons.

5. People

 Well-trained delivery executives ensuring quick and polite service.

 Customer support team for order tracking and issue resolution.
 Training on handling beauty products safely and hygienically.

6. Process

 Simple app interface with one-click reordering.

 Real-time order tracking and guaranteed delivery timelines.
 Efficient inventory management to avoid stock-outs.
 Easy cancellation and return process.

7. Physical Evidence

 Branded delivery bags and uniforms.

 Neat and secure packaging with invoices and care tips.
 Professional app design and user-friendly website.

Conclusion:By designing a 7P marketing mix focused on speed, convenience, and reliability, the company can
successfully position itself as a quick-commerce leader in beauty and personal care, meeting the needs of modern
urban consumers in India.
 M.B.A. (All programmes) GC - 05 - 105: BASICS OF MARKETING (2021 Pattern) (Semester - I)

Q1) Answer any Five:

a) Mention the difference between customer satisfaction and customer delight.

Difference between Customer Satisfaction and Customer Delight (2 Marks – SPPU Pattern)

1. Customer Satisfaction:It refers to the state where customer expectations are met by the product or service
provided.
2. Customer Delight:It refers to a state where customer expectations are exceeded, creating a positive emotional
response and higher loyalty.

👉 In short: Satisfaction = meeting expectations; Delight = exceeding expectations.

b) List down the components of PESTAL analysis framework.

Components of PESTAL Analysis Framework:

1. P – Political factors
2. E – Economic factors
3. S – Social factors
4. T – Technological factors
5. A – Environmental factors
6. L – Legal factors

c) Name any four bases for segmentation for business markets.

Any four bases for segmentation in business markets:

1. Geographic segmentation
2. Demographic segmentation (industry type, company size)
3. Operating variables (technology used, usage rate)
4. Purchasing approach (centralized vs decentralized buying)

d) List down the five steps of consumer buying decision process.

Five steps of Consumer Buying Decision Process:

1. Problem recognition
2. Information search
3. Evaluation of alternatives
4. Purchase decision
5. Post-purchase behaviour
e) Identify two elements of physical evidence in marketing mix.

Two elements of Physical Evidence in Marketing Mix:

1. Ambience and layout of the service facility

2. Brochures, signage, and other tangible communication materials

f)Give one example of each-Tangible product and intangible product.

Examples:

1. Tangible product: Mobile phone

2. Intangible product: Insurance service

g) Mention any two buying roles in consumer market.

Any two buying roles in consumer market:

1. Initiator
2. Decision maker

h) If winter season is severe, which industry lose and which one gains.

Industries affected by severe winter season:

 Industry that loses: Ice cream / cold beverage industry

 Industry that gains: Woollen clothing / heater manufacturing industry

Q2) Answer any Two:

Explain goods and services continuum with respect to the situation where you have checked in a five star hotel.

Goods and Services Continuum – Five Star Hotel Example

The goods and services continuum explains that most offerings are a mix of tangible goods and intangible services,
rather than being purely one or the other.

Explanation with five-star hotel stay:

1. Pure service dominance:A five-star hotel primarily offers services such as reservation, check-in, room service,
housekeeping, security, and hospitality.
2. Tangible goods included:Along with services, tangible goods are also provided such as the room, bed, furniture,
toiletries, towels, food, and beverages.
3. Service-centered with supporting goods:The hotel experience lies toward the service end of the continuum,
where services dominate but goods support the service delivery.
4. Customer experience focus:The customer pays mainly for comfort, luxury, personalized service, and experience,
not merely for physical items.
5. Combination offering::Thus, a five-star hotel represents a hybrid offering, where intangible services and
tangible goods are integrated to deliver superior value.
Conclusion:In a five-star hotel check-in, the offering is closer to pure service, but it includes several tangible goods,
clearly illustrating the goods and services continuum.

a) Describe the impact of Globalization and technology on marketing.

Impact of Globalization and Technology on Marketing

Globalization and technology have significantly transformed modern marketing by expanding markets, improving
efficiency, and enhancing customer engagement.

Impact of Globalization:

1. Expanded global markets:Firms can market products internationally, increasing customer base beyond
domestic boundaries.
2. Standardization and customization:Companies adopt global brands while also customizing products to suit local
cultures and preferences.
3. Increased competition:Global players intensify competition, compelling firms to improve quality and pricing.
4. Global supply chains:Easier sourcing and distribution across countries reduce costs and improve availability.
5. Cultural sensitivity in marketing:Marketers must understand cultural differences while designing promotion
strategies.

Impact of Technology:

1. Digital marketing growth:Use of social media, search engines, and websites has transformed promotional
activities.
2. Data-driven decisions:Big data and analytics help understand consumer behavior and personalize marketing
efforts.
3. E-commerce expansion:Online platforms enable 24×7 buying and selling across geographical boundaries.
4. Improved customer engagement:Chatbots, CRM systems, and mobile apps enhance customer interaction and
service.
5. Cost and time efficiency:Automation and technology reduce marketing costs and speed up communication.

Conclusion:Globalization and technology together have made marketing more competitive, customer-centric, and
global in nature.

b) Discuss the strategies across two stages of PLC-Introduction stage and growth stage considering a luxury
watch.

Strategies across PLC Stages for a Luxury Watch

The Product Life Cycle (PLC) describes the stages a product passes through from launch to decline. Strategies vary
at each stage. For a luxury watch, the strategies at the Introduction and Growth stages are as follows:

1. Introduction Stage

1. Product strategy:Focus on superior craftsmanship, premium design, limited editions, and brand heritage to
create exclusivity.
2. Price strategy:Adopt price skimming, charging high prices to recover development costs and signal prestige.
3. Promotion strategy:
Heavy emphasis on brand-building through celebrity endorsements, luxury magazines, events, and digital
storytelling.
4. Distribution strategy:Selective and exclusive distribution through flagship stores, authorized dealers, and
boutiques.
5. Objective:Create awareness, establish brand image, and attract niche luxury customers.

2. Growth Stage

1. Product strategy:Introduce variations such as new designs, materials, and complications to attract wider
affluent segments.
2. Price strategy:Maintain premium pricing but offer value-added benefits like warranties or customization.
3. Promotion strategy:Shift from awareness to preference-building by highlighting quality, status, and customer
testimonials.
4. Distribution strategy:Gradual expansion into premium malls, international markets, and select online luxury
platforms.
5. Objective:Increase market share, strengthen brand loyalty, and outperform competitors.

Conclusion:By adopting differentiated strategies at the introduction and growth stages, a luxury watch brand can
build exclusivity initially and then expand sustainably while maintaining its premium image.

Q3) Answer any One:

a) Discuss the steps involved in organizational buying of a boiler in sugar industry.

Steps Involved in Organizational Buying Process of a Boiler in Sugar Industry

Organizational buying refers to the decision-making process by which organizations purchase goods and services for
production and operations. In the sugar industry, buying a boiler is a complex and high-value new task buying
situation, involving multiple steps and participants.

1. Problem Recognition-The sugar factory identifies the need for a new boiler due to expansion, replacement of an
old boiler, increased capacity, or energy efficiency requirements.

2. General Need Description-The management specifies the general characteristics of the boiler required, such as
capacity, fuel type (bagasse), steam pressure, safety standards, and energy efficiency.

3. Product Specification-Technical experts and engineers prepare detailed specifications including design, material
quality, automation level, emission norms, installation requirements, and maintenance standards.

4. Supplier Search-The purchase department searches for reliable boiler manufacturers and suppliers through trade
directories, industry exhibitions, references, and online platforms.

5. Proposal Solicitation-Qualified suppliers are invited to submit technical and commercial proposals, quotations,
and tender documents for supplying and installing the boiler.

6. Supplier Evaluation and Selection-Suppliers are evaluated based on price, quality, technology, delivery time,
after-sales service, reputation, and compliance with safety and environmental regulations.

7. Order-Routine Specification-The sugar factory finalizes the order details such as quantity, specifications, delivery
schedule, installation terms, payment conditions, warranty, and penalties for delay.
8. Performance Review-After installation and use, the boiler’s performance is evaluated in terms of efficiency,
reliability, fuel consumption, safety, and maintenance support.

Conclusion:The organizational buying process for a boiler in the sugar industry is systematic and involves technical,
financial, and managerial considerations to ensure operational efficiency and long-term cost effectiveness.

b) Develop a segmentation strategy for a new line of athletic shoes targeting young urban professionals. Justify
your choice of segmentation bases.

Segmentation Strategy for Athletic Shoes Targeting Young Urban Professionals

Market segmentation involves dividing a broad market into smaller, homogeneous groups with similar needs. For a
new line of athletic shoes aimed at young urban professionals, a well-defined segmentation strategy is essential.

1. Geographic Segmentation

 Basis: Metro cities and Tier-1 urban areas

 Justification: Young professionals are concentrated in cities with higher income levels, fitness culture, gyms,
and corporate workplaces.

2. Demographic Segmentation

 Basis: Age (22–35 years), income (middle to upper-middle class), education, occupation (IT, finance, corporate
sector)
 Justification: This group has purchasing power, brand awareness, and a lifestyle that values fitness, comfort,
and style.

3. Psychographic Segmentation

 Basis: Lifestyle, personality, and values (health-conscious, aspirational, brand-oriented)

 Justification: Urban professionals prefer shoes that match active lifestyles, social status, and fashion trends.

4. Behavioral Segmentation

 Basis: Usage occasion (gym, jogging, casual office wear), benefits sought (comfort, durability, style), brand
loyalty
 Justification: This segment looks for multipurpose athletic shoes suitable for workouts as well as casual wear.

5. Technology & Media Usage

 Basis: Digital behavior (online shopping, social media usage, fitness apps)
 Justification: Young professionals are tech-savvy, making digital marketing and e-commerce effective
channels.

Target Market Profile:Young, urban, health-conscious professionals seeking stylish, comfortable, and
performance-oriented athletic shoes suitable for both fitness and casual use.
Conclusion:By using a combination of geographic, demographic, psychographic, and behavioral segmentation,
the company can effectively target young urban professionals and position the athletic shoes as a premium yet
practical lifestyle product.

Q4) Answer any One:

b) Evaluate the new consumer capabilities with respect to buying of men's cosmetic products.

New Consumer Capabilities in Buying Men’s Cosmetic Products

With globalization, digitalization, and changing social attitudes, consumers—especially men—have developed new
capabilities that significantly influence the buying of men’s cosmetic products such as skincare, grooming, hair
care, and fragrances.

1. Access to Information-Modern consumers can easily access product information through websites, YouTube
reviews, influencers, blogs, and social media. Men can compare ingredients, benefits, prices, and brand claims before
purchase.

2. Increased Awareness and Knowledge-Men are now more aware of personal grooming, skin types, and cosmetic
benefits. Knowledge about dermatology, natural ingredients, and product suitability has increased informed
decision-making.

3. Comparison and Evaluation Power-Online platforms allow consumers to compare multiple brands and products
instantly in terms of price, quality, reviews, and ratings, increasing bargaining power.

4. Customization and Choice-Consumers can choose products tailored to their specific needs such as anti-aging,
acne control, beard care, or sensitive skin, reflecting demand for personalized solutions.

5. Influence of Social Media and Influencers-Men increasingly rely on fitness influencers, celebrities, and grooming
experts on Instagram and YouTube, shaping preferences and purchase intentions.

6. Convenience and Accessibility-E-commerce platforms and mobile apps enable anytime, anywhere purchasing
with home delivery, subscriptions, and easy returns, increasing convenience.

7. Willingness to Experiment-Modern male consumers are more open to experimenting with new brands, premium
products, organic cosmetics, and international brands, unlike traditional brand loyalty.

8. Price Sensitivity with Value Focus-While consumers look for discounts and offers, they are also willing to pay
premium prices for quality, brand image, and visible results.

9. Demand for Transparency and Ethics-Consumers expect clear labeling, cruelty-free products, sustainability, and
ethical sourcing, influencing brand trust and loyalty.

10. Active Feedback and Participation:Through reviews, ratings, and social media comments, consumers actively
share feedback, influencing other buyers and even brand strategies.

Conclusion:New consumer capabilities have transformed the men’s cosmetic market into a knowledge-driven,
digital, and customer-centric market, forcing companies to innovate, communicate transparently, and focus on
value creation.
b)Analyse the marketing mix strategies of any two competing fast food chains.

Marketing Mix Strategies of Two Competing Fast Food Chains: McDonald’s and KFC

Fast food chains compete intensely using their marketing mix (4Ps: Product, Price, Place, Promotion). A
comparison of McDonald’s and KFC highlights how each brand differentiates itself.

1. Product Strategy

McDonald’s:

 Wide menu including burgers, fries, wraps, desserts, beverages.

 Strong localization in India (McAloo Tikki, Veg Maharaja Mac).
 Focus on consistency, quick service, and value meals.

KFC:

 Core focus on fried chicken (original recipe, hot & crispy).

 Limited but specialized menu with buckets, chicken burgers, and rice bowls.
 Emphasis on taste, spices, and brand signature recipes.

2. Price Strategy

McDonald’s:

 Competitive and affordable pricing.

 Value meals, combo offers, and budget-friendly items.
 Targets mass consumers, students, and families.

KFC:

 Slightly premium pricing compared to McDonald’s.

 Bucket meals and group offers provide perceived value.
 Targets taste-focused and brand-loyal customers.

3. Place (Distribution) Strategy

McDonald’s:

 Extensive presence in malls, highways, city centers, and suburbs.

 Strong drive-through and home delivery network.
 Tie-ups with food delivery apps (Swiggy, Zomato).

KFC:

 Concentrated presence in urban and semi-urban areas.

 Focus on dine-in, takeaway, and delivery.
 Strong online ordering and app-based delivery.
4. Promotion Strategy

McDonald’s:

 Mass advertising using TV, digital media, and hoardings.

 Child-focused promotions, toys, and family branding.
 Frequent discounts and limited-time offers.

KFC:

 Bold and humorous advertising with brand characters.

 Strong social media engagement and influencer marketing.
 Promotions focused on taste, indulgence, and bucket offers.

Conclusion

 McDonald’s follows a mass-market, value-driven strategy with wide product variety and affordability.
 KFC adopts a product-specialist and taste-led strategy with premium positioning.

Both chains successfully use differentiated marketing mix strategies to compete and capture distinct customer
segments.

Q5) Answer any One:

a)Assume you are a marketing manager in a medium sized organization which manufactures instant foods. Now
the company intends to launch ready-to-eat breakfast cereal in various flavors to be sold at all leading outlets in
India. Conduct environmental scanning for the company.

Environmental Scanning for Launching Ready-to-Eat Breakfast Cereal in India

(As Marketing Manager – Medium-Sized Instant Foods Company)

Environmental scanning is the process of collecting and analyzing information about external forces that affect the
company’s marketing decisions. For launching ready-to-eat breakfast cereal in India, the key environmental
factors can be scanned using PESTEL and industry analysis:

1. Political Factors

 Government policies on food safety and standards (FSSAI regulations).

 Import/export duties on raw materials like oats, grains, flavors.
 Policies promoting ‘Make in India’ and support for food processing industries.

Impact: Ensure compliance with labeling, quality standards, and pricing regulations.

2. Economic Factors

 India’s growing middle class with rising disposable income increases demand for convenience foods.
 Urbanization and dual-income households driving ready-to-eat consumption.
 Inflation and food price volatility may affect production cost and pricing strategy.
Impact: Set competitive price points and manage cost efficiencies.

3. Social & Cultural Factors

 Changing lifestyles with increased preference for healthy, quick breakfast options.
 Rising health awareness and demand for nutritious cereals (low sugar, high fiber).
 Regional taste preferences (e.g., sweet, milder flavors vs spicy/savoury).

Impact: Offer multiple flavors (masala oats, fruits, honey) catering to cultural tastes.

4. Technological Factors

 Advancements in food processing, packaging, and preservation extend shelf life.

 Use of e-commerce, apps, and online delivery to reach consumers.
 Technology for nutritional fortification and quality control.

Impact: Invest in modern manufacturing and packaging to improve quality and reduce spoilage.

5. Environmental Factors

 Consumer preference for eco-friendly, sustainable packaging.

 Concerns about carbon footprint and sourcing of raw materials.
 Waste management norms and sustainable supply chain practices.

Impact: Adopt recyclable packaging and eco-friendly processes.

6. Legal & Regulatory Factors

 Food labeling norms: nutritional information, allergens, expiry date.

 Advertising standards to avoid misleading health claims.
 Labor laws and safety standards within manufacturing.

Impact: Ensure all legal compliances to avoid penalties and build trust.

7. Competitive Environment

 Existing players like Kellogg’s, Quaker, local brands (e.g., MTR, Bagrry’s).
 Competitive pricing, brand loyalty, and promotions.
 Differentiation based on taste, nutrition, and positioning (premium vs value).

Impact: Conduct competitor analysis to position product uniquely (e.g., Indian flavors, fortified nutrients).

8. Consumer Behavior Trends

 Shift toward online purchases and modern retail (supermarkets, hypermarkets).

 Preference for healthy claims — multigrain, gluten-free, high protein.
 Increased use of social media influencers for recommendations.

Impact: Develop targeted promotions and online marketing campaigns.

Conclusion-Environmental scanning shows that India presents a favorable market for ready-to-eat breakfast
cereals due to changing lifestyles, health awareness, and economic growth. However, success depends on
compliance with regulations, understanding consumer tastes, competitive pricing, technology adoption, and
sustainable practices.

c) Create a brand positioning strategy for a budget airline entering a competitive market. Differentiate the
brand from existing competitors while highlighting its unique selling proposition.

Brand Positioning Strategy for a Budget Airline in a Competitive Market

Brand positioning refers to designing a brand’s offer and image to occupy a distinct place in the minds of target
customers. For a new budget airline entering a highly competitive market, a clear and differentiated positioning
strategy is essential.

1. Target Market

 Price-sensitive travelers such as young professionals, students, small business owners, and middle-income
families.
 Frequent domestic flyers seeking affordability with reliability.

2. Positioning Statement

“A smart, affordable airline that delivers reliable, on-time flights with transparent pricing and a pleasant flying
experience.”

3. Unique Selling Proposition (USP)

 Lowest total travel cost with no hidden charges

 High on-time performance
 Clean, comfortable aircraft with friendly service

4. Points of Differentiation

a) Price & Value

 Simple and transparent fare structure.

 Pay-only-for-what-you-use model (optional meals, seat selection).
 Regular promotional fares and loyalty discounts.

b) Service Efficiency

 Fast check-in through mobile app and web-based systems.

 Quick turnaround times to reduce delays.
 Courteous and trained cabin crew despite low fares.

c) Reliability

 Strong focus on punctuality and safety.

 Real-time flight updates via SMS and app notifications.
d) Digital-First Experience

 App-based booking, boarding passes, and customer support.

 Personalized offers based on travel history.

5. Brand Personality

 Smart, honest, youthful, and customer-friendly

 Communicates simplicity, trust, and efficiency.

6. Marketing Communication Strategy

 Digital and social media–centric promotion.

 Use of catchy taglines emphasizing affordability and reliability.
 Influencer and referral marketing to build trust.

7. Visual Identity

 Bright, modern logo and aircraft livery reflecting energy and optimism.
 Simple uniforms and clean interiors reinforcing value-for-money image.

8. Competitive Positioning Map

 Positioned between ultra-low-cost airlines (low service) and full-service airlines (high cost).
 Offers affordable pricing with superior reliability and transparency.

9. Customer Experience Focus

 Hassle-free booking and boarding.

 Consistent service delivery across all touchpoints.
 Quick grievance redressal through digital platforms.

Conclusion:By positioning itself as a “smart value airline” that combines low fares, punctuality, transparency, and
digital convenience, the budget airline can successfully differentiate itself in a crowded market and build long-term
customer loyalty.
 First Year M.B.A. (All Programs) 105-GC-05 : BASICS OF MARKETING
(2021 Pattern) (Semester - I)

Q1) Answer any five.

a) Define Marketing Myopia and provide on example.

Marketing Myopia:Marketing myopia refers to a short-sighted approach of firms where they focus only on selling
products rather than understanding and satisfying customer needs, leading to business failure in the long run.

Example:Railway companies focusing only on trains and not on the transportation need, allowing airlines and road
transport to capture the market.

b) Identify two-key demographic factors markets consider when analysing the marketing environment for a dairy
product.

Two key demographic factors for a dairy product:

1. Age Structure of Population – Children and elderly consumers have higher demand for milk and milk
products.
2. Income Level of Consumers – Higher income groups can afford value-added dairy products like cheese,
yogurt, and flavored milk.

c) List the four criteria for effective segmentation.

Four criteria for effective market segmentation:

1. Measurable – Size and purchasing power of the segment can be measured.

2. Accessible – The segment can be effectively reached and served.
3. Substantial – The segment is large and profitable enough.
4. Actionable – Effective marketing programs can be designed for the segment.

d) Explain the difference between consumer buying and organisational buying behaviour.

Difference between Consumer Buying and Organisational Buying Behaviour:

 Consumer Buying Behaviour:

o Decisions are made by individual consumers or families.
o Influenced by personal, social, and psychological factors.
 Organisational Buying Behaviour:
o Decisions are made by groups or buying committees in organisations.
o Influenced by economic, technical, and formal organisational factors.
e)Draw and label the PLC.

Product Life Cycle (PLC):

Labels of PLC stages:

1. Introduction
2. Growth
3. Maturity
4. Decline

f)Give one advantage and one disadvantage free samples for sales promotion.

Free Samples – Sales Promotion:

 One Advantage:
o Helps consumers try the product, leading to quick awareness and acceptance.
 One Disadvantage:
o Involves high cost and may not always result in repeat purchases.

g)List out the minimum two requirements for exchange to happen.

Minimum requirements for exchange:

1. At least two parties must be involved.

2. Each party must have something of value to offer to the other.

h)Define for get market and niche marketing.

Target Market:A target market is a specific group of consumers selected by a firm to whom it directs its marketing
efforts based on needs, income, age, or behavior.

Niche Marketing:Niche marketing refers to focusing on a small, well-defined segment of the market with specific
needs that are not adequately served by competitors.
Q2) Answer any two.

a) What is moment of truth? Explain the concept of zero moment of truth with example.

Moment of Truth (MOT) and Zero Moment of Truth (ZMOT)

(Answer suitable for 5 marks – SPPU Pune Semester End Exam)

Moment of Truth (MOT):

 Moment of Truth refers to the point of interaction between a customer and a brand that influences the
customer’s perception and purchase decision.
 It occurs when a customer comes in contact with the product, service, or company (e.g., in-store
experience, service encounter).

Zero Moment of Truth (ZMOT):

 Zero Moment of Truth is the stage before the actual purchase, where consumers search for information
online and form opinions about a product.
 It includes online reviews, ratings, social media, blogs, videos, and comparisons.

Explanation of ZMOT:

 Introduced by Google, ZMOT highlights that buying decisions start before visiting a store.
 Customers evaluate options digitally and decide which brand to choose even before seeing the product
physically.

Example:

 A consumer wants to buy a smartphone.

 Before purchase, they check YouTube reviews, Google ratings, price comparisons, and customer
feedback.
 This online evaluation stage is the Zero Moment of Truth.

Conclusion:MOT occurs during direct interaction with the product or [Link] occurs before purchase, and
plays a crucial role in shaping modern consumer buying behavior.
 b) Describe how each of the following could go beyond on exchange situation to establishing a relationship
with customers. i)Online fresh cut vegetable retailer ii) Automobile dealership

1) Online Fresh-Cut Vegetable Retailer

 Consistent Quality & Freshness: Deliver hygienic, fresh, and uniformly cut vegetables to build trust.
 Personalization: Offer customized baskets, preferred cuts, and subscription plans based on past
purchases.
 Convenience & Reliability: On-time delivery, easy reordering, and flexible slots.
 Engagement & Education: Share storage tips, recipes, and nutrition content via app/WhatsApp.
 After-Sales Support & Feedback: Quick resolution of issues and use feedback to improve service.

2) Automobile Dealership

 Relationship Selling: Understand customer needs and recommend suitable models and finance options.
 Superior Delivery Experience: Smooth documentation, vehicle orientation, and follow-up calls.
 After-Sales Service: Regular service reminders, quality servicing, and transparent billing.
 Loyalty Programs: Service discounts, referral benefits, and extended warranties.
 Ongoing Engagement: Test-drive events, service camps, and personalized communication.

Conclusion:By adding value, personalization, and continuous engagement, both businesses can move from a one-
time exchange to long-term customer relationships.

c) You are a retail store owner. How would you apply the concept of “Customer relationship management” to
retain and attract customers.

Meaning of CRM:Customer Relationship Management (CRM) is a strategy to build long-term relationships with
customers by understanding their needs, improving satisfaction, and increasing loyalty.

Application of CRM by a Retail Store Owner:

Customer Data Collection:Maintain a database of customer details, purchase history, and preferences using billing
systems or loyalty cards.

Personalized Service:Offer customized product suggestions, special discounts, and birthday/anniversary offers based on
customer data.

Loyalty Programs:Introduce reward points, membership cards, and referral benefits to encourage repeat purchases.

Effective Communication:Inform customers about new arrivals, offers, and sales through SMS, email, or WhatsApp.

Feedback and Complaint Handling:Collect customer feedback and resolve complaints quickly to enhance trust and
satisfaction.

Conclusion:By effectively applying CRM, a retail store can retain existing customers, attract new customers, and achieve
long-term profitability through improved customer satisfaction.
Q3) Answer any one.

a) Undertake the macro environmental analysis for any one of the following product/services. i) i Medical shop
ii) Tourism company

Macro environmental analysis is commonly done using PESTLE Analysis (Political, Economic, Social, Technological,
Legal, Environmental).

Macro Environmental Analysis of a Medical Shop (PESTLE):

1. Political Factors:

 Government health policies and schemes (e.g., Jan Aushadhi).

 Price control on essential medicines under DPCO.
 Stability of government affects healthcare spending.

2. Economic Factors:

 Income level of people influences demand for branded vs generic medicines.

 Inflation affects medicine prices and operating costs.
 Growth of healthcare sector increases business opportunities.

3. Social Factors:

 Aging population increases demand for medicines.

 Rising health awareness and lifestyle diseases boost sales.
 Population growth directly increases customer base.

4. Technological Factors:

 Use of billing software and inventory management systems.

 Online medicine ordering and home delivery apps.
 Digital payment methods improve customer convenience.

5. Legal Factors:

 Drug and Cosmetics Act regulations.

 Mandatory licenses for pharmacy operations.
 Compliance with expiry date, storage, and prescription rules.

6. Environmental Factors:

 Proper disposal of expired and unused medicines.

 Eco-friendly packaging and reduced plastic use.
 Compliance with biomedical waste management norms.
 Conclusion:A medical shop operates in a highly regulated macro environment. Political, legal, and social
factors play a major role, while technology and economic conditions shape growth and competitiveness.
b) Discuss the life cycle of product in terms of its probable impact on manufacturer marketing mix. Illustrate
using a battery operated toothbrushes.

Meaning of Product Life Cycle (PLC):Product Life Cycle refers to the stages through which a product passes from its
introduction to decline in the market. The stages are Introduction, Growth, Maturity, and Decline.

Impact of PLC on Marketing Mix (4Ps) with Example

1. Introduction Stage-Nature:New product launched, low sales, high promotion cost.

Marketing Mix Impact:

 Product: Basic model of battery-operated toothbrush.

 Price: High (skimming) or low (penetration) to attract users.
 Place: Limited outlets, online platforms, pharmacies.
 Promotion: Heavy advertising, demonstrations, awareness campaigns.

Impact:Focus on creating awareness and trial.

2. Growth StageNature:Rapid increase in sales, entry of competitors.

Marketing Mix Impact:

 Product: Improved features, better battery life, multiple modes.

 Price: Slightly reduced to face competition.
 Place: Wider distribution in supermarkets, e-commerce, malls.
 Promotion: Persuasive advertising highlighting benefits.

Impact:Focus on brand preference and market share expansion.

3. Maturity Stage

Nature:Sales growth slows, intense competition.

Marketing Mix Impact:

 Product: Product differentiation, attractive design, combo packs.

 Price: Competitive pricing, discounts, offers.
 Place: Maximum market coverage.
  Promotion: Reminder advertising, sales promotion schemes.

Impact:Focus on retaining customers and maximizing profit.

4. Decline Stage

Nature:Sales decline due to new technology (electric/smart toothbrushes).

Marketing Mix Impact:

 Product: Limited models, reduced variants.

 Price: Reduced price to clear stock.
 Place: Selective distribution.
 Promotion: Minimal promotion.

Impact:Decision to discontinue, modify, or replace the product.

Conclusion:The Product Life Cycle significantly affects the manufacturer’s marketing mix decisions. By adjusting
product, price, place, and promotion at each stage, manufacturers of battery-operated toothbrushes can maximize
sales and profitability throughout the product’s life.

Q4) Answer any one.

a) Evaluate the consumer buying behavior stages for purchasing a EV car for personal use, analysing factors
influencing.

Evaluate the Consumer Buying Behaviour Stages for Purchasing an EV Car (Personal Use)

Meaning of Consumer Buying Behaviour:Consumer buying behaviour refers to the process and actions
undertaken by individuals while deciding to purchase goods and services to satisfy their needs.

The purchase of an Electric Vehicle (EV) involves a high-involvement decision due to high cost, technology, and
long-term usage.

Stages of Consumer Buying Behaviour with Factors Influencing (EV Car):

1. Need Recognition

 Consumer realizes the need for a personal vehicle due to rising fuel costs, environmental concern, or
government incentives.
 Influencing factors:
o High petrol/diesel prices
o Environmental awareness
o Government subsidies on EVs

2. Information Search

 Consumer searches information from online reviews, company websites, EV forums, YouTube videos, and
friends.
 Influencing factors:
o Social media
o Word of mouth
o Advertisements
o Test drives and dealer information

3. Evaluation of Alternatives

 Comparison between EV brands and conventional fuel cars.

 Evaluation based on:
o Price and running cost
o Battery range and charging time
o Brand reputation
o Warranty and service network

4. Purchase Decision

 Final decision to buy a specific EV model after considering finance options.

 Influencing factors:
o Discounts and subsidies
o Availability of charging infrastructure
o EMI schemes and exchange offers
o Dealer support

5. Post-Purchase Behaviour

 Consumer evaluates satisfaction after using the EV.

 Positive experience: Brand loyalty and word-of-mouth promotion.
 Negative experience: Complaints or dissatisfaction.
 Influencing factors:
o Battery performance
o After-sales service
o Maintenance cost
o Charging convenience

Conclusion:The purchase of an EV car involves a systematic and rational buying process influenced by economic,
social, technological, and psychological factors. Understanding these stages helps marketers design effective
strategies to attract and retain EV customers.
(Access the impact of technological advancement on traditional retail business. How can brick-and-mortor stores
adapt to remain competitive in the digital age.

Impact of Technological Advancement on Traditional Retail

1. Growth of E-Commerce

 Online platforms offer convenience, wide choice, and home delivery.

 Result: Reduced footfall in physical stores.

2. Price Transparency

 Customers compare prices instantly using mobile apps.

 Result: Pressure on margins of traditional retailers.

3. Digital Payments

 UPI, cards, and wallets have changed buying habits.

 Result: Cashless transactions became an expectation.

4. Changing Consumer Expectations

 Demand for faster service, personalization, and convenience.

 Result: Traditional stores must upgrade service standards.

5. Data-Driven Marketing

 Online retailers use analytics and AI for targeted promotions.

 Result: Brick-and-mortar stores lag without customer data.

How Brick-and-Mortar Stores Can Adapt and Remain Competitive

1. Omni-Channel Retailing

 Integrate physical store with online presence (website, WhatsApp, apps).

 Offer click-and-collect and home delivery.

2. Use of Technology in Stores

 POS systems, inventory software, and CRM tools.

 Improves efficiency and reduces stock-outs.

3. Superior In-Store Experience

 Personalized service, product demonstrations, and instant support.

 Creates value that online shopping cannot fully replace.
 4. Digital Marketing & Social Media

 Use local SEO, Instagram, and WhatsApp for promotions.

 Engage customers with offers and updates.

5. Loyalty Programs and Personalization

 Reward repeat customers with points, discounts, and customized offers.

 Builds long-term relationships.

Conclusion-Technological advancement has disrupted traditional retail, but it also offers new opportunities. By
adopting digital tools, providing superior in-store experiences, and integrating online and offline channels, brick-
and-mortar stores can remain competitive and sustainable in the digital age.

Q5) Answer any one.

a) If you have been appointed as marketing manager in digital payments company which is experiencing uneven
demand for its facilities. Create and explain how you will redesign the marketing mix for the company.

Introduction:Uneven demand in a digital payments company may occur due to seasonality, low usage in certain
segments, or lack of awareness. As a marketing manager, the objective is to stabilize demand, increase usage
frequency, and expand adoption by redesigning the marketing mix (4Ps).

Redesigned Marketing Mix

1. Product (Service Offering):

 Introduce value-added services like bill payments, subscriptions, and micro-investments.

 Simplify user interface to improve ease of use for all age groups.
 Ensure high security features (OTP, biometric authentication).
 Customize services for merchants, students, and senior citizens.

Impact:

 Increases usage across different customer segments.

2. Price:

 Offer cashbacks, discounts, and reward points during low-demand periods.

 Zero or minimal transaction charges for small merchants.
 Special pricing or incentives for frequent users.

Impact:Encourages higher transaction volume and repeat usage.

3. Place (Distribution):

 Ensure availability across multiple platforms (mobile app, QR codes, POS machines).
 Partner with retail stores, e-commerce platforms, transport services, and utility providers.
 Expand presence in semi-urban and rural areas through agent networks.
 Impact:Improves accessibility and adoption in untapped markets.

4. Promotion:

 Run awareness campaigns highlighting convenience, safety, and speed.

 Use digital marketing, influencer promotions, and referral programs.
 Educate users through demos, videos, and in-store promotions.
 Promote usage during off-peak times with time-based offers.

Impact:Builds awareness, trust, and regular usage.

Additional Strategies to Manage Uneven Demand:

 Segmentation: Target low-usage segments like small vendors and elderly users.
 CRM & Data Analytics: Track usage patterns and design personalized offers.
 Customer Education: Conduct training programs for merchants and new users.

Conclusion:By redesigning the marketing mix with customer-centric products, attractive pricing, wider reach, and
strong promotion, the digital payments company can reduce uneven demand, increase adoption, and ensure
sustainable growth.

b) Assess a tourism company wanted to expand its market in Indian market through a detailed PESTLE analysis,
considering political, economic, socio-cultural, Technological, legal and environmental factors.

Introduction:To expand successfully in the Indian market, a tourism company must analyze the macro-
environmental factors that influence opportunities and challenges. PESTLE analysis helps in understanding Political,
Economic, Socio-cultural, Technological, Legal, and Environmental factors affecting the tourism industry.

1. Political Factors:

 Government initiatives like Incredible India, Dekho Apna Desh, and tourism promotion campaigns support
industry growth.
 Stability of government and favorable tourism policies encourage domestic and foreign tourism.
 Simplified visa policies (e-visa, visa on arrival) increase international tourist inflow.
 Public investment in infrastructure such as airports, highways, and railways boosts tourism.

2. Economic Factors:

 Rising disposable income and growing middle class increase domestic travel.
 Economic growth leads to higher spending on leisure and travel.
 Inflation and fuel prices affect travel costs and tourist demand.
 Exchange rate fluctuations influence inbound and outbound tourism.

3. Socio-Cultural Factors:

 Diverse culture, heritage, festivals, and traditions attract tourists.

 Growing preference for experiential, eco, medical, and wellness tourism.
 Increase in nuclear families and work-life balance awareness boosts holiday travel.
 Changing lifestyles and social media influence travel decisions.
4. Technological Factors:

 Online booking platforms, mobile apps, and digital payments improve convenience.
 Use of AI, virtual tours, and data analytics enhances customer experience.
 Social media marketing and influencer travel content impact destination choices.
 GPS, online reviews, and rating platforms affect tourist trust and decisions.

5. Legal Factors:

 Compliance with tourism laws, safety regulations, and labor laws is mandatory.
 GST on hotel rooms and travel services impacts pricing strategies.
 Regulations related to data privacy and online transactions must be followed.
 Environmental and heritage protection laws affect tourism activities.

6. Environmental Factors:

 Growing awareness of sustainable and eco-friendly tourism.

 Climate change and seasonal variations affect tourist inflow.
 Government norms on waste management, plastic ban, and conservation impact operations.
 Natural disasters can affect tourism destinations and planning.

Conclusion:The Indian tourism market offers strong growth potential, supported by favorable political policies,
economic growth, cultural diversity, and technological advancement. However, success depends on effectively
managing legal compliance, environmental sustainability, and changing consumer preferences. A detailed PESTLE
analysis helps the tourism company formulate strategic and sustainable expansion plans.
 M.B.A. (All Program) 105 : GC - 05 : BASICS OF MARKETING

(2021 Pattern) (Semester - I)

Q1) Answer Any Five (2 marks each) :

a) Define Customer Delight with relevent example.

 Customer Delight:Customer delight refers to a situation where a company exceeds customer expectations,
resulting in a high level of satisfaction, loyalty, and positive word-of-mouth.

Example:An online retailer not only delivers the product on time but also adds a small free gift and a thank-you
note, making the customer pleasantly surprised and delighted.

b)Difference between micro and macro environment.

Difference between Micro Environment and Macro Environment

 Micro Environment:It consists of factors close to the organization that directly affect its operations, such as
customers, suppliers, competitors, and intermediaries.
 Macro Environment:It includes external and uncontrollable forces that indirectly affect the organization, such
as political, economic, social, technological, legal, and environmental factors.

c) Identify any two types of positioning strategies for "smart watch".

Two positioning strategies for a Smart Watch

 Feature-based positioning:The smart watch is positioned based on advanced features such as fitness tracking,
heart-rate monitoring, GPS, and health analytics.
 Benefit-based positioning:The smart watch is positioned as a device that improves health, fitness, and lifestyle
convenience.

d) Define the zero moment of truth in consumer behaviour.

 Zero Moment of Truth (ZMOT):Zero Moment of Truth refers to the stage in consumer behaviour where a
customer searches for information online—such as reviews, ratings, videos, or social media—before making a
purchase decision.

e)Identify any two elements in process in the marketing mix.

Two elements of Process in the Marketing Mix

 Service delivery procedure:The method and flow through which a service is delivered to customers (e.g., order
processing, payment, and after-sales service).
 Customer interaction system:The way customers interact with the company during service delivery, such as
response time, complaint handling, and support mechanisms.

f)List "B to B" and "B to C" market using appropriate example.

B2B and B2C Markets with Examples

  B2B (Business to Business) Market:Transactions where one business sells products or services to another
business.
Example: A software company providing accounting software to firms.
 B2C (Business to Consumer) Market:Transactions where a business sells products or services directly to final
consumers.
Example: A retail store selling clothes to customers.

e) Describe zero level channel with an example.

Zero Level Channel:A zero level channel is a direct distribution channel in which the manufacturer sells products
directly to the final consumer without any intermediaries.

Example:A farmer selling fresh vegetables directly to customers or a company selling products through its own
website.

h) Define the term service. Name the service where consumer presence is not needed.

Service:A service is an intangible activity or benefit offered by one party to another that does not result in
ownership of anything.

Service where consumer presence is not needed:

 Courier service (or banking back-office processing, e.g., cheque clearing).

Q2) Answer Any Two (5 marks each) :

a)Distinguish between Market Potential and Market share with relevent example.

Difference between Market Potential and Market Share

Basis Market Potential Market Share

Market potential refers to the maximum possible Market share refers to the portion or
Meaning demand or sales for a product or service in a given percentage of total market sales captured
market under ideal conditions. by a particular firm.

Nature It is theoretical and future-oriented. It is actual and performance-oriented.

Helps in estimating growth opportunities and planning Helps in evaluating competitive position
Purpose
production and marketing strategies. and market performance of the firm.

Measured in terms of total demand or sales Measured as a percentage of company sales

Measurement
volume/value of the entire market. to total market sales.

If a company sells 20,000 electric scooters in

If total demand for electric scooters in Pune is 1,00,000
Example Pune, its market share is 20%.
units per year, this represents market potential.
f) You are a retail store owner. How would you apply the concept of "consumer relationship management" to
retain and attract customers?

Application of Consumer Relationship Management (CRM) by a Retail Store Owner

As a retail store owner, Consumer Relationship Management (CRM) can be applied to attract and retain customers
through the following ways:

1. Customer Data Collection:Maintain records of customer details, purchase history, preferences, and contact
information to understand buying behaviour.
2. Personalized Communication:Use customer data to send personalized offers, discounts, birthday wishes, and
product recommendations through SMS, email, or WhatsApp.
3. Loyalty Programs:Introduce loyalty cards, reward points, or membership benefits to encourage repeat
purchases and build long-term relationships.
4. Improved Customer Service:Handle complaints quickly, provide courteous service, and ensure easy return or
exchange policies to enhance customer satisfaction.
5. Feedback and Engagement:Collect customer feedback regularly and make improvements based on suggestions
to strengthen trust and customer loyalty.

Thus, effective CRM helps in building strong customer relationships, increasing satisfaction, and ensuring long-term
business growth.

g) A young couple with double income intends to buy International Tour package. Explain the buying process
involved in this purchase scenario.

Buying Process for an International Tour Package (Young Double-Income Couple)

The buying process involved in purchasing an international tour package can be explained through the following
steps:

1. Need Recognition:The couple realizes the need for an international vacation due to work stress, desire for
leisure, or to celebrate a special occasion like an anniversary.
2. Information Search:They search for information through travel websites, tour operators, social media, reviews,
blogs, and recommendations from friends or relatives.
3. Evaluation of Alternatives:Different tour packages are compared based on destination, price, duration,
inclusions (hotel, meals, sightseeing), safety, and brand reputation of travel agencies.
4. Purchase Decision:After evaluating options, the couple selects the most suitable international tour package
considering budget, comfort, and value for money, and makes the booking.
5. Post-Purchase Behaviour:After the tour, they evaluate their satisfaction. A positive experience leads to repeat
purchase and recommendations, while dissatisfaction may result in complaints or negative word-of-mouth.
 Q3) Answer Any One (10 marks each)

a) Develop PESTLE analysis for an Electric Vehicle Dealers.

PESTLE Analysis for an Electric Vehicle (EV) Dealer:PESTLE analysis helps in understanding the external macro-
environmental factors affecting an Electric Vehicle dealer. It includes Political, Economic, Social, Technological,
Legal, and Environmental factors.

1. Political Factors

 Government policies promoting electric mobility such as FAME (Faster Adoption and Manufacturing of Electric
Vehicles) scheme.
 Subsidies, tax benefits, and incentives on EV purchase increase demand.
 Government investment in charging infrastructure supports EV dealers.
 Import-export policies affecting EV components and batteries.

2. Economic Factors

 Rising fuel prices make EVs more cost-effective compared to petrol/diesel vehicles.
 High initial cost of EVs may affect affordability for some customers.
 Availability of easy financing, EMIs, and loans boosts EV sales.
 Economic growth and disposable income influence demand for EVs.

3. Social Factors

 Growing environmental awareness among consumers.

 Increasing preference for sustainable and eco-friendly transportation.
 Urban lifestyle and congestion issues encourage adoption of EVs.
 Changing consumer attitudes towards innovation and technology.

4. Technological Factors

 Advancements in battery technology improving range and charging speed.

 Development of fast-charging and smart charging infrastructure.
 Integration of digital features such as mobile apps and connected vehicles.
 Continuous innovation requires dealers to update technical knowledge.

5. Legal Factors

 Government regulations on emission norms favor EVs over conventional vehicles.

 Compliance with safety standards and vehicle certification rules.
 Consumer protection laws regarding warranties and after-sales service.
 Battery recycling and disposal regulations affecting operations.

6. Environmental Factors

 EVs reduce carbon emissions and air pollution.

 Support for climate change goals and sustainable development.
 Pressure on dealers to promote green practices.
  Battery waste management and environmental sustainability concerns.

Conclusion:The PESTLE analysis shows that Electric Vehicle dealers operate in a supportive political and
environmental environment, while economic and technological factors play a critical role in shaping market growth
and competitiveness.

b) Create a positioning statement for a smartphone brand positioning itself as a premium product. Explain how the
statement differentiates the brand from competitors.

Positioning Statement for a Premium Smartphone Brand:Positioning Statement:“For discerning customers who
seek superior performance and elegance, [Brand X] is a premium smartphone that delivers cutting-edge technology,
exceptional design, and unmatched user experience, unlike ordinary smartphones that focus only on basic features.”

Explanation of Differentiation from Competitors

1. Target Market Focus:The statement clearly targets discerning and premium customers who value quality, status,
and performance, differentiating the brand from mass-market smartphones.
2. Superior Quality and Performance:Emphasis on cutting-edge technology highlights advanced processors,
cameras, and security features, setting the brand apart from average competitors.
3. Premium Design and Aesthetics:By highlighting exceptional design and elegance, the brand differentiates itself
through materials, finish, and style.
4. Exclusive User Experience:Focus on unmatched user experience suggests smooth performance, exclusive
software features, and superior customer support.
5. Emotional and Status Appeal:The positioning appeals to customers’ desire for prestige and exclusivity, unlike
competitors competing mainly on price.
6. Clear Competitive Contrast:The phrase “unlike ordinary smartphones” clearly distinguishes the brand from
competitors offering standard features at lower prices.

Conclusion:This positioning statement effectively differentiates the smartphone brand by emphasizing premium
quality, advanced technology, superior design, and exclusivity, helping it occupy a strong premium position in the
competitive smartphone market.

Q4) Answer Any One (10 marks each) :

a) Analyze the "MACRO" environment for any one company i) Ola electricals ii) Netflix.

Below is an SPPU-oriented, point-wise 10-mark answer.

I am selecting Netflix (you may write any one).

Analysis of MACRO Environment for Netflix

The macro environment consists of uncontrollable external factors that influence the company’s performance.
These can be analyzed using PESTLE framework.

1. Political Factors

 Government regulations on digital content and censorship affect Netflix’s content strategy.
 Policies related to foreign direct investment (FDI) influence its operations in different countries.
 Geopolitical tensions may affect market access in certain regions.
2. Economic Factors

 Changes in disposable income directly impact subscription-based services.

 Inflation and economic slowdown may lead consumers to cut non-essential spending like OTT subscriptions.
 Exchange rate fluctuations affect Netflix’s international revenue.

3. Social Factors

 Increasing preference for on-demand digital entertainment.

 Growing acceptance of binge-watching culture.
 Diverse audience preferences require localized and regional content.

4. Technological Factors

 Growth of high-speed internet and smartphones supports Netflix usage.

 Advancements in AI help in content recommendation algorithms.
 Continuous need to upgrade streaming technology to ensure quality and security.

5. Legal Factors

 Compliance with copyright laws and intellectual property rights.

 Data privacy laws (such as GDPR) affect user data handling.
 Local content regulations in some countries may limit content availability.

6. Environmental Factors

 Rising concern over energy consumption of data centers.

 Pressure to adopt sustainable digital practices.
 Corporate responsibility towards reducing carbon footprint.

Conclusion:Netflix operates in a dynamic macro environment where technological and social factors strongly
support growth, while legal and political factors require careful compliance and adaptation.

b) Evaluate the positioning strategies adopted by FMCO Brands in India.

It looks like “FMCO Brands” may be a typo or misunderstanding — usually in marketing questions for SPPU exams
the reference is to FMCG (Fast-Moving Consumer Goods) brands. So below is a 10-mark answer evaluating the
positioning strategies adopted by FMCG brands in India (you can replace with specific Indian FMCG examples like
Dabur, Patanjali, HUL brands, Britannia, etc.).

Positioning Strategies Adopted by FMCG Brands in India

1. Positioning by Product Attributes and Benefits:FMCG brands often position themselves based on unique product
features and benefits that satisfy consumer needs. For example, herbal and natural positioning by brands like
Himalaya emphasizes the use of natural ingredients, appealing to health-conscious consumers. Similarly, Colgate
positions its toothpaste for cavity protection and oral hygiene. (Egyankosh)
2. Price-Quality Positioning:Many FMCG brands position themselves on a value-for-money or premium quality
basis.

 Value-for-money: Brands may offer affordable pricing with adequate quality to attract price-sensitive
consumers.
 Premium quality: Other brands use higher pricing to signal superior quality and exclusivity, allowing them to
command better margins. (Egyankosh)

3. Positioning by Usage or Application:Brands may focus on the specific use or occasion for their products. For
instance, Surf Excel positions itself as the detergent that “removes tough stains”, targeting households where
effective cleaning is a priority. This usage-based positioning helps differentiate it in a crowded market. (Egyankosh)

4. Emotional and Cultural Positioning:Some companies tie their brand to emotions, values, or cultural themes. For
example, brands like Amul use emotional appeals — tradition, Indian identity, family values — to build deeper
connection with consumers. These campaigns foster loyalty beyond functional benefits. (IGNOU Corner)

5. Sustainability and Ethical Positioning:With rising consumer awareness around environment and sustainability,
some FMCG brands emphasize eco-friendly practices and ethical sourcing. This sustainable positioning attracts
socially conscious buyers and enhances brand reputation. (ResearchGate)

6. Differentiation through Packaging and Innovation:FMCG brands leverage innovative packaging and formats to
stand out. For instance, small sachets make products affordable and accessible to lower-income or rural segments.
This strategy not only differentiates the brand but also broadens market reach. (LinkedIn)

7. Digital and Emotional Engagement Positioning:In the digital age, many FMCG brands use social media,
storytelling, and content marketing to connect with younger audiences. Emotional, aspirational, or lifestyle-
oriented communication helps create strong brand associations and recall. (PromotEdge)

Conclusion:FMCG brands in India adopt diverse positioning strategies — based on product benefits, price-quality,
emotional appeal, sustainability, innovative packaging, and digital engagement — to carve a distinct position in the
consumer’s mind. These strategies help them attract target segments, build loyalty, and outperform competitors in
a highly competitive market environment.

If you want, I can tailor this answer to specific brands (e.g., Dabur, Patanjali, HUL brands) with direct positioning
examples!

Q5) Answer Any One (10 marks each) :

a) Describe the suitable strategies to be adopted at each stage of PLC for khadi clothes in India.

Strategies at Each Stage of Product Life Cycle (PLC) for Khadi Clothes in India

The Product Life Cycle (PLC) includes Introduction, Growth, Maturity, and Decline stages. Suitable strategies for
Khadi clothes at each stage are as follows:
1. Introduction Stage:At this stage, Khadi clothes are being promoted to create awareness and acceptance.

Strategies:

 Create awareness about eco-friendly, hand-spun, and indigenous nature of Khadi.

 Use government support and campaigns like Vocal for Local and Make in India.
 Limited product variety focusing on basic traditional wear.
 Promotional activities through exhibitions, fairs, and social media.
 Competitive or subsidized pricing to encourage trial purchases.

2. Growth Stage:Demand for Khadi increases due to rising environmental awareness and fashion acceptance.

Strategies:

 Introduce modern designs and fusion wear (Khadi kurtis, jackets, office wear).
 Expand distribution through online platforms, retail outlets, and boutiques.
 Increase promotional activities using celebrities, designers, and influencers.
 Improve product quality, comfort, and finishing.
 Moderate pricing strategy reflecting improved value.

3. Maturity Stage:Khadi faces intense competition from other sustainable and ethnic wear brands.

Strategies:

 Product differentiation through designer collections and premium Khadi.

 Brand strengthening by highlighting heritage, sustainability, and craftsmanship.
 Discounts, offers, and loyalty schemes to retain customers.
 Wider product line including accessories and home furnishings.
 Cost control through efficient production and supply chain management.

4. Decline Stage:Demand may decline due to changing fashion trends or substitute fabrics.

Strategies:

 Reposition Khadi as a premium, lifestyle, and sustainable fashion product.

 Reduce unprofitable product lines and focus on niche markets.
 Export Khadi products to international eco-friendly markets.
 Use limited edition collections to revive interest.
 Explore alternative uses such as uniforms, corporate gifting, or décor products.

Conclusion:By adopting appropriate strategies at each PLC stage, Khadi clothes can sustain market relevance,
promote Indian heritage, and achieve long-term growth in both domestic and global markets.
b) Why is it essential for marketers to grasp and adopt to consumer behaviour at each stage of the buying
process, and how can a live case or example illustrate this significance?

Importance of Understanding & Adapting to Consumer Behaviour at Each Stage of the Buying Process

(With Live Example)

It is essential for marketers to understand and adapt to consumer behaviour at each stage of the buying process
because consumer decisions are influenced by different factors at different stages. Proper understanding helps
marketers design effective strategies, increase customer satisfaction, and improve sales.

1. Need Recognition:Importance:Marketers must identify what triggers consumer needs to create relevant demand.

Marketing Adaptation:Advertising, influencer marketing, and problem-focused messaging.

 Example:A smartphone brand highlights problems like low battery life to trigger need recognition.

2. Information Search

Importance:Consumers actively look for information to reduce risk.

 Marketing Adaptation:Providing detailed product information, reviews, websites, social media presence.
 Example:Amazon provides product descriptions, customer reviews, and ratings to support information search.

3. Evaluation of Alternatives

Importance:Consumers compare brands on price, quality, features, and reputation.

Marketing Adaptation:Differentiation, comparison ads, free trials, demos.

Example:Netflix offers free trials and highlights exclusive content to stand out from competitors.

4. Purchase Decision

Importance:Consumers finalize the decision based on trust and convenience.

Marketing Adaptation:Easy payment options, discounts, EMI facilities, and attractive offers.

Example:Flipkart’s Big Billion Days sale encourages quick purchase decisions through limited-time discounts.

5. Post-Purchase Behaviour

Importance:Consumer satisfaction determines repeat purchase and word-of-mouth.

Marketing Adaptation:After-sales service, follow-up communication, feedback collection, loyalty programs.

Example:Apple provides excellent after-sales service, strengthening customer loyalty and advocacy.

Conclusion:Understanding consumer behaviour at each stage enables marketers to influence decisions effectively,
reduce perceived risk, enhance customer experience, and build long-term relationships. Live market examples
clearly show that brands succeeding in aligning their strategies with consumer behaviour gain a strong competitive
advantage.