1 marketing notes bbm sem 2

SANJEEV KUMAR SINGH, Asst Professor, MBA Department, VVIET, Mysuru – 570 022.

Mob: +91 91640 76660. Email: [email protected]

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MARKETING MANAGEMENT – BBM – 4th SEMESTER NOTES

QUESTION and ANSWERS

1. What are the nature and scope of marketing management?

Marketing is a organizational function, concerned with creation, communicating and delivering values

to the customer or consumers, which should match with the needs and wants of the consumers.

Marketing Management is concerned with Needs, Wants of the consumer, where the demand is created

by the manufacturer with the product/ services with a accepted price/ value of the product, creates the

distribution network through the middle men to reach the consumers.

Nature of Marketing Management – It‟s a specialized business function, It‟s a Consumer Oriented,

It reflects the objective of the organization, It‟s a part of the Management function, It‟s a socially

accepted function and so on.

Scope of Marketing Management – People, Goods, Services, Ideas, Experiences, Events, Places,

Properties, Firm and Information.

2. How is the various marketing orientation, adopted by different firms?

Production Oriented Concept -> Product Oriented Concept -> Selling Oriented Concept -> Marketing/

Customer Oriented Concept -> Societal-Marketing Concept

3. What is Marketing and Selling?

a. Marketing is concerned with consumers satisfaction, while selling is concerned with transfer of

product/ services from the manufacturer to consumer.

b. Marketing is the secondary objective of a firm, while selling is the primary or basis objective of the

firm.

c. Marketing is a long term targets to establish consumer satisfaction for profit, image of the firm,

brand equity, while selling is a short term objective which is concerned with the sales-volume of

the product.

d. Marketing makes consumer‟s to determine the price, while in selling, cost of the product will

determine the price of the product.

4. What are the micro and macro environment in Marketing Management?

Marketing Environment will be concerned with Controllable, Un-controllable and Observational.

Where Controllable will be the sections within the organization (Management, Manufacturing,

Purchasing, Product designing and development and Company Image and Brand Equity. The Un-

controllable will be the sections which are not in the control of the firm like factors of Demographical,

Social, Cultural, Psychological, Political, Technological, Economical and so on and the Observational

will be the Competitors, Distribution Channel, Sales force, Market structure, Buyers or consumers and

customers.

In brief Controllable Environment (Within the company), Micro Environment (Observational) and

Macro Environment (Uncontrollable, which outside the company)

5. What are the Marketing challenges in the Globalized Economic Scenario?

The marketing challenges in Global Economic Scenario will be the deep study on different countries on

the following,

1. Steady growth of Company and its brand,

2. Organizational structure and degree of permitted decentralization

3. Changes and valuations of Currency of the countries,

4. Social and Cultural Differences,

5. Language and People of different countries,

6. Distribution Cost and its impact on pricing,

7. Changes in Political and Legal Scenario of different countries,

8. The Export and Import Policy of the mother country.

6. Explain Buying Motives?

Buying Motives are those stimulates people to buy the product or services. These are basically based on

two basic factors – Personal Motives and Social Motives, where personal motives are governed by the

personal style, thoughts, perception, egoism, learning, try to innovate and so on, while social motive

will include the person‟s image, status in society, which influences the buyer to decide on.



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7. What are the factors influencing the Buying Behavior?

Cultural Factors – The people of the society.

Social and Cultural Factors – The family and people around.

Economical Factors – The financial condition and his commitments

Personal factors – The individual‟s age, sex, lifestyle and so on.

Psychological Factors – The perception, faith, habit and belief followed by the individual. (BUYING

HABITS will be due to psychological reasons)

8. What are the stages in consumer and Industrial buying decision process? (Industrial is not in syllabus)

Problem Recognition -> Pre-purchase Information Search -> Evaluation of alternatives -> Purchase

Decisions -> Post Purchase Behavior.

During a Industrial Buying Process: Identify the need, Description – (Quality and

Quantity), Technical Specification (Any particular specification to be emphasized),

Supplier search or Source of supply, Proposal solicitation (Selected suppliers give their

quotes), Supplier selection, Placement of order (PO), Follow up, Invoice handling, Receipt

of items purchased, and Performance Evaluation (Also to correct the errors and modify)

9. What are the types of consumer buying decisions/ level of consumer decision making process?

1. Habitual Buying Decisions (It may be a chewing gum)

2. Low level buying decisions ( It can be the regular consumer products required at home)

3. High level buying decisions (It may be for purchase of a flat/ property or a expensive car)

4. Variety level buying decisions (It will relate for switching the brand to test all brands available)

10. Differentiate Organizational Buying and House Hold Buying?

SL Characteristics Organizational Buying House Hold Buying

1 Purchase For a purpose For house hold consumption

2 Style of Purchase May be direct from Manufacturer Through a Retailer/ Dealer

3 Quantity Bulk Quantity Small Quantity

4 Payment Paid/ To be billed Generally paid

5 Decision Decided by a group Not necessarily a group

6 Finalization Decided slow Quick decision

7 Terms Long term May or may not be long term

8 Middlemen Generally a channel May not require a middlemen

9 Specifications Complex Generalized/ Standardized

10 Stimulation Personal Selling Advertising and references

11. What is Consumer Protection Act, 1986?

Consumer Protection Act 1986, intends to protect the interests of the consumers against the manufacturers/

traders. The salient features of this act are social welfare, where it covers all products and services offered

by any firm, against unfair practice and/ or exploiting or cheating consumers. If an consumer is unsatisfied/

have grievances with the manufacturer on the product or services provided, one can file/ submit the

complaint, which is simple and inexpensive at the respective consumer court for justification, which has to

be executed in the time frame. This Consumer Protection Act protects the consumers which include, Right to be protected, Right to be

informed, Right to be assured, Right to consumer education, Right to healthy environment, Right to be

heard and Right to seek redressal.

12. What do you understand by Target Marketing Strategy?

Target Marketing Strategy is also called as STP – Segmentation, Targeting and Positioning.

Segmentation will include identification of potential market segments which has similar

characteristics concerned with the product manufactured, Targeting will include the attractiveness in

the market segments, which will help to position the product successfully (May be less competition,

consumer behavior of people, payment terms, and so on) and finally Positioning will include strategy

to position the product, which will have a marketing mix for each target mix.

13. What means Market Segmentation, and factors involved?



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Market Segmentation is dividing and sub-dividing the market into small groups and identify potential

markets, possessing similar characteristics. Market Segmentation may be done based on Demographic,

Psychological, Behavioral and Geographic.

The factors influencing the Market Segmentation will include, the company size, Company resources,

Type of product, Type of Market, People‟s perception and behavior and life Cycle of the product. The

factors included should be measurable, differentiable, accountable, actionable and substantial.

14. Differentiate Market Aggregation and Market Segmentation?

SL CHARACTERISTICS MARKET AGGREGATION MARKET SEGMENTATION

1 Market/ Target Whole Market/ Mass Target Selective Market/ Specific

2 Strategy Bending Demand to the will of

supply

Supply to the will of demand

3 Nature Importance of seller Importance to consumer

4 Profit Making More profit Profit depends on consumer

satisfaction

5 Customer Satisfaction Can be ignored Better service gains trust of consumers

15. Differentiate Consumer market and Industrial Market?

Areas Industrial Market Consumer Market

Market Few and Geographically concentrated Mass and Geographically disbursed

Product Technical and Complex Standardized

Services Time, Service Very Important Time, Service not very important

Buyer Behavior Involve a group – Both sides experts Influenced individually/ family

Channel Few or small Multiple/ highly indirect

Promotion Mostly only personal selling Mostly advertising

Price Bidding and Negotiating Standardized pricing

16. What are the bases of identifying the target customers?

The bases of identifying the target market are based on Market Attractiveness, Competitiveness,

Social/ Environmental factors and firm‟s capability to serve the market segment.

Market Attractiveness will include the size, growth, price sensitive, and people‟s buying behavior.

Competitiveness will include on the product differentiation, existing competitors and anticipate fresh

products launch. Social/ Environmental Factors will include the social, legal, political and cultural

characteristics in the market segment. Firm’s capability will include the firms financial capacity to

compete, explore marketing resources, costing and distribution capacity.

17. What are the different marketing strategies in Target Market?

1. Limited Market Coverage Targeting – Single-segment concentration, Selective specialization,

Product Specialization, and Market Specialization.

2. Full Market Coverage Targeting – Un-differentiated (No difference – One and only one market,

one price etc), Differentiated (Also called Selective segments, where different programs are framed

for different targeted market). Concentrated Marketing – (Also called Focus Marketing) Company

decides instead of going after a small share of large market, it would concentrate on a small

market with the maximum share)

18. What means positioning? And Product Differentiation Strategy?

“Positioning is the designing the company‟s offer to occupy a distinct place in the target market”.

The various product differentiation strategy are Product Differentiation (Features, Specifications,

Design, Performance), Service Differentiation (Consumer services like delivery, installation, training

and after-sales-service), Personnel Differentiation (Effective communication, Knowledge, Service and

Courtesy), Channel Differentiation (Effective channel to the entire targeted market), and Image

Differentiation (Media, Events).

19. Explain the tasks involved in positioning?

Competitors Identification -> Determining how competitors are perceived and evaluated ->

Determining Competitors Positioning -> Analyzing customer‟s preferences -> Making the position ->

Monitoring the position.



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20. What is Brand Equity and its importance?

Brand Equity in terms of marketing effects is the unique attribute to the brand and the company,

where the name, symbol, sign, slogan, design adds or subtracts the value provided by the product/

service to a firm and to firm‟s customers.

Brand Equity is important to both the firm, channels of distribution/ marketing agents and to the

customers too, to launch a product in the market, where the firm builds their trust on this.

21. What are the Brand Strategies, and what are its essential criteria?

1. Product Branding

2. Line Branding

3. Range Branding

4. Endorsement Branding

5. Umbrella Branding – Flexible Umbrella Branding and Aligning Umbrella Branding

6. Source Brand Strategy

The essential criteria for a successful brand are, Superior Quality, Differentiated from Competitors,

Unique in its services, Easy to remember the sign, symbol or name, color, Provides value to the

product, focus on service after sales and so on.

22. What is a product concept, product decisions and its characteristics?

Product Concept, is a physical services and symbolic particulars expected to satisfy and benefit the

buyer. Product Decisions, is Based on product nature (may be a goods, services, person, place,

property or information), Based on Consumer‟s Intention (Industrial or Consumer Product) and Based

on social benefit (To satisfy basic needs like Tea or coffee, To satisfy on long term needs and may not be

for profit (a Computer or water filter) and so on. Product Characteristics, are it may be tangible

(Goods) or intangible (Services), bears a name tag (Product name), has a value (Can be sold) and

satisfies people.

23. Explain a product hierarchy?

SL Product Hierarchy Nature Example

1 Basic Product Family Contributes to Product Family Satisfies basic needs

2 Product Family Products that satisfies with choice Product Quality, Type or style

3 Product Class Product contributing unique satisfaction Cotton or Silk Saris

4 Product Line Similarities in the range of product class In saris only Cotton Saris

5 Product Type Difference in form of quality and usage Ladies Dresses from a specific

Brand

6 Brand Identifiable by a name, symbol or sign ---Same as above ---

7 Item A product which satisfies all the above ---Same as above ---

24. What are the characteristics of a product?

Product has external and internal characteristics (Questionable and unquestionable

Characteristics) they are as follows:

SL Explicit Characteristics Implicit Characteristics

1 Physical Configuration

(Raw Materials, Chemicals etc)

Product symbolism (Product‟s

social interaction)

2 Packaging and Brand name (Attractive Packaging) Product perception (People‟s

View of the product)

3 Product Mix (Availability at retail outlets) Product evaluation (To fulfill

customer needs)

4 Product Life Cycle (PLC) (Product Life Stage) Communication Media (Product

to act as a communication media) 5 Associated services ( Credit facilities, Installation,

Service)

25. What are the factors which effect the decision in product strategy?



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Customer Needs and Product Characteristics, Technology, Government Policies, and Product

life cycle. (PLC)

26. Name the stages for a new product development process? (Diagram to be made)

i. Idea Generation (from sales and sales related people),

ii. Idea Screening (Ideas to succeed),

iii. Concept Development & Testing (Based on idea develop the concept and test),

iv. Business Analysis (Investment, sales forecast),

v. Product Development (R & D),

vi. Marketing Testing (Showroom testing to launch),

vii. Commercialization (Marketing Action Plan)

27. Name the steps taken during a product decline stage?

a. Market Modification (New Market, Win New Customers, More frequency, Break

Competitor‟s customers),

b. Product Modification (Modify as per the needs of the customer),

c. Marketing Mix Modification (Pricing, Distribution, Advertising, Sales Promotion,

Personal Selling, Services)

28. What is diffusion of innovation?

Diffusion of Innovation is a process by which the use of an innovation is spread within a

market group, over time and over various categories of adopters. Diffusion of innovation

describes, how a product typically is adopted by the market place and what factors can

influence the rate (how fast) or level (how widespread) of adoption. The rate of adoption is

dependent on consumer traits, the product and the company‟s market efforts.

This is by the AIDA model (Attention, Interest, Desire and Action), where Diffusion is a

macro process (Innovator in the Market Place), while Adoption is a micro process (Individual

buyer, who intends to purchase or reject the product)

29. What is diffusion process and its basic elements?

Diffusion process is the process where a innovation is communicated through a media/

channel of communication, within a specific timeframe in a social group/ people. Hence the

basic elements include Innovation, Channel of communication, Timeframe and a Social

System.

30. Which buyers are referred as „Innovators‟ and „Laggards‟? How do you differentiate them?

This is the “THEORY OF DIFFUSION”, where there are two kinds of buyers in the market,

where one takes high risks and the other do not. (The initial and last in the theory of

diffusion)

Buyers who are adventures and take high risks in buying are „Innovators‟, while those

buyers who wait, watch and confirm from someone who has experienced the product is

termed as „Laggards‟.

Innovators are very particular, about the new and innovative product and don‟t respond to

the sales personnel‟s opinion, while Laggards are too dependent on someone who has already

used and are satisfied with the product.

It‟s a easy to convince a „Innovator‟, in compared to a „Laggards‟.

Innovators take huge risks, while laggards do not.

36. Name the stages in a product life cycle?

STAGE 1: Introduction stage,

STAGE 2: Growth stage,

STAGE 3: Maturity Stage &

STAGE 4: Decline Stage



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37. Name the steps taken during a product decline stage?

Market Modification (New Market, Win New Customers, More frequency, Break

Competitor‟s customers), Product Modification (Modify as per the needs of the customer),

Marketing Mix Modification (Pricing, Distribution, Advertising, Sales Promotion, Personal

Selling, Services)

38. What are the elements in product mix strategy?

Product Mix Strategy has three basic elements, they are Product Line Expansion, Product

Modification and Product Elimination.

39. What is merchandise planning and strategy?

Merchandise planning can be beneficial to both customer and retailer, it‟s the planning and

control of merchandise inventory of the retail firm, which balances the expectations of both

the targeted customer and strategy of the firm.

Merchandise strategy will include From where the product to be purchased/ sourced, What

shall be the terms and conditions with suppliers, Pricing Strategy to be adopted, Method of

packaging and How to present to the end-customer.

40. Explain packaging and types?

Packaging is an activity where the firm plans on, To protect the product, To be economical,

To be convenient and To act as a sales promotional activity (To be made attractive with

design, colors and legible).

Packaging may be done for Protection and Safety, Easy to use/ Handy and store, Packaging

may be for repeated use (Refill items), and Packaging can be for Multiple Packaging (One

container having products for one use, Ex: Face wash Kit)

41. “Is Packaging a Marketing Tool”?

Packaging is a Marketing Tool, to promote the product. A good packaging will help to,

Identify the product, Describes the product, Promote the product, Stimulates the customer to

see the contents, Provides complete information about the product, Is made based on the law

of the land.

Hence Packaging is a silent marketing agent of the firm, which can stimulate demand and

sales of any firm.

42. What are the factors considered for pricing decisions?

Pricing Objective, Demand Analysis, Cost Analysis, Competitive Analysis

43. What are the factors influence the pricing decisions?

Cost of the product, Objectives, Demand, Competition, Distribution channel, Government

(Law, Environment and Politics), Economic Conditions, Ethical Considerations, Types of Suppliers and Buyers & Product differentiations…. In brief there are both, Internal and

External Factors influencing the pricing decisions.

44. What is Pricing and its basic objective?

Pricing is a managerial function which includes the cost of the product or services, profit,

taxes, and expenses towards launch, execute (Channels/ Sales Force/ Meetings) and promote

the product.

Pricing is done with the objective of Survival of the firm, Economical to the buyer, Maximum

Short term profits, Maximum Short term sales, Maximum Sales Growth (Market

Penetration), Profit Margin to satisfy all, Maximum Market Skimming, Product-Quality

Leadership, Other Pricing Objectives



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45. What are the different kinds of pricing a product?

Psychological Pricing (Psychological factor), Monopoly Pricing (Seller‟s rule the price),

Customer‟s Pricing (When customer rules the price), Geographical Pricing (Geographically

distributed), Price Lining ( Price for selected goods), Prestige Pricing (High status at high

price), Dual Pricing (One price to Govt and others for Public), Penetration Pricing ( Low

price, max sales), Skimming Pricing (New innovative price), Negotiated Pricing (Bargain by

industrial buyers), Competitive Bidding (Contract), Odd Pricing (Daily use products)

46. What is price skimming and price penetration? (NEW PRODUCT PRICING) Pricing Skimming: The basic objective is maximizing profit. When a „Innovative Product‟ is

penetrated (introduced) in the market, the price becomes a secondary issue, hence the firm is

able to make maximum profit in the initial stage (Introduction period of the product life

cycle), gradually the price will be regularized as it become common in the market. This type

of pricing is Pricing Skimming. (Skim means to take out the cream) Penetration Pricing: In this concept the price of the good is so low with an objective to

attain maximum sales, by price sensitivity concept. Other assumptions are: 1. Highest

volume will reduce the production and distribution cost, leading for a long term profits. 2.

Low prices will discourage entry of potential competitors.

47. What are the pricing concepts for establishing the value?

(5 Cs for establishing the value of the product)

1. Cost of the product,

2. Competitors,

3. Customers/ Consumers,

4. Company objectives and

5. Channel members.

48. What are the different pricing strategies adopted?

1. New Product Pricing Strategies, 2. Product-Mix Pricing Strategies, 3. Geographical Pricing

Strategies, 4. Discriminatory Pricing Strategies and 5. Price Adjustment Pricing Strategies.

49. What means Marketing Distribution Channels and its purpose?

Marketing Distribution Channel means the „Channels of Distribution or Marketing Channel or Trade

Channel‟, which is a set of channels namely C&F Agents, Super stockiest, Stockiest, Distributors,

Wholesalers, Retailers or Dealers, where all, or a part come together to route the product from the

producer or manufacturer to the consumer.

The purpose of the channel is for

a. To make the product available in the market,

b. To enhance the sales,

c. To achieve the company objectives,

d. To minimize cost in distribution,

e. To achieve customer satisfaction,

f. To pass on the relevant information required as about competitors, display and sales

promotional activities and so on.

50. What are the functions of the distribution channels?

a. To link buyers and sellers,

b. To arrange for safety of the goods,

c. To arrange for warehousing and assorting,

d. To promote the sales,

e. To suggest the seller on various practical issues,

f. To inform the seller on steps taken and followed by the competitors and other channels of

distribution,

g. To facilitate on credit sales and financing where required,

h. To provide sales personnel and operative personnel,



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i. To assist in merchandising,

j. To promote company and company brand,

k. To promote buyer and seller relationships and so on.

51. What do you understand about Channel Alternatives?

A complete structure of Channels of Distribution is the cluster of C&FA, Stockiest, Wholesalers,

Distributors, Dealers or Retailers, to deliver or link the sellers and buyers. This transaction can be

done through DIRECT and INDIRECTLY.

Direct channel will refer to the delivery of the product from the producer to the consumer directly, it

can be through tele-shopping, Direct Marketing, Personal selling and so on.

Indirect channel will refer to delivery of the products through the support of the channels of

distribution.

MLM or Multi Level Marketing or Net-work Marketing or Multi-Channel Marketing or Hybrid

Distribution Channel, is the latest marketing strategies, where the company focus on team building

for sales also increase its members, here the sales personnel will be engaged in sales also will try to

build a network with people and strengthen the organization‟s sales and team work.

52. What means One-Level marketing, Two Level Marketing and Three Level Marketing?

One Level Marketing will refer to Sales achieved with (One Channel) one Middle man, from the

producer or manufacturer to customers,

Two Level Marketing will refer to Sales achieved with (Two Channel) 2 middlemen engaged to sell

the product, from the producer or manufacturer to the customers.

Three Level Marketing will refer to the Sales achieved with (Three Channels) 3 middlemen engaged

to sell the product from the producer or manufacture to the customers.

53. What means Multi Level Marketing?

MLM or Multi Level Marketing or Net-work Marketing or Multi-Channel Marketing or Hybrid

Distribution Channel, is the latest marketing strategies, where the company focus on team building

for sales also increase its members, here the sales personnel will be engaged in sales also will try to

build a network with people and strengthen the organization‟s sales and team work.

54. What are the factors affecting channel choice?

1. Factors related to Product Characteristics,

2. 2. Factors related to Company Characteristics,

3. 3. Factors related to Consumer Characteristics,

4. 4. Factors related to Channels of Distribution Characteristics, and

5. 5. Factors related to Environmental Characteristics.

55. What are the patterns of distribution?

The pattern of distribution can be

1. Intensive Distribution, (Ex. Cigarette)

2. Selective Distribution (Selected Market/ Outlets) and

3. Exclusive Distribution (Exclusive dealership for a brand).

56. Name the Distribution channels?

Geographical :(Established based on Cities and Towns), Channel Size :( Direct and Indirect

or MLM Channel), Characteristics of Intermediaries: (Dealers, Brokers, Value Added

Sellers), Mixed system: (Direct or Indirect or MLM channels)

57. What are the characteristics of Channel Distributor?

Buying, Selling, Warehousing, Promotional activities, Grading/ assorting, Transportation or

Logistics for prompt delivery, Crediting/ Financial Assistance, Information to company, Risk

taking on investments, Technical Services of complex Goods and so on.

58. What are the objectives for designing the channels of distribution?

Complete coverage of the targeted market, Cost-effective, Prompt service to customers, and support to

the firm on warehousing, financing and so on



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59. What are the stages for channel design decisions? (Draw the same in a chronological order)

Formulation of channel objectives -> Identify the channel function -> Linking channel design to product

characteristics -> Evaluation of distribution environment -> Evaluation of competitors channel design -

> Matching the channel design to company resources -> Evaluation of alternatives and selecting the

best.

60. What are the seven steps in Channel Management Decisions?

The channel management decisions are,

1. Recruiting Channel Members,

2. Selecting Channel Members,

3. Training the channel members,

4. Motivating the Channel Members,

5. Evaluating the channel performances,

6. Modifying Channel (where required), and

7. Managing Channel Relationships.

61. What means channel conflict and what are their cause?

Any dispute between any members in the channel of distribution will be called as Channel Conflict.

This can be in Vertical Channel, Horizontal Channel or Multi channel level.

The cause can be to build the individual image in sales or to achieve sales. It can be created or due to

mis-communications and differences between the channel members of a product.

62. What means distribution system and what are the components in distribution system?

Distribution System is the strategy framed by the company for moving the goods from the

manufacturer to the ultimate customer. The objective is to enhance sales, brand building, company

image and customer satisfaction. It can be short or long distribution system.

The components involved in distribution channel are 1. To obtain business orders and documentation,

2. To Manage the Inventory, 3. To Maintain Warehousing, 4. To manage logistics movements, and 5.

To maintain a good customer service.

63. What means IMC and what are its objectives? (Objectives will relate to Question No: 65)

Integrated marketing communications (IMC) is the coordination and integration of all marketing

communication tools, avenues, and sources within a company into a seamless program, which

maximizes the impact on consumers and other end users at a minimal cost. This integration affects all

of a firm‟s business-to-business, marketing channel, customer focused, and internally directed

communications.

The objectives of IMC is to 1. To build Brand Equity, 2. To provide information, 3. To Manage demand,

4. To differentiate the product with competitors, 5. To stimulate demand, 6. To influence buyer‟s

behavior.

64. What are the components in marketing mix, promotion mix and IMC Promotion Mix?

The marketing mix consists of: Products, pricing systems, Place (Distribution systems), Promotional

programs

The promotions mix consists of: Advertising, Sales promotions (including consumer and trade

promotions), Personal selling activities, Direct Marketing, Publicity, Public Relations, Word of mouth,

On-line Marketing.

The IMC promotions mix also includes: Direct marketing, Public relations programs, Internet

marketing, Sponsorship marketing, Database marketing

65. What are the objectives of communication in Marketing?

1. To inform,

2. 2. To Persuade,

3. 3. To Remind, and

4. 4. To appeal (change behavior/ stimulate)

66. What are the steps involved for developing an effective communication?

An effective communication has the following steps:

1. Identify the market,

2. Determine the objective,



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3. Establish the budget,

4. Choose a media,

5. Creating a message, and

5. Evaluate the effectiveness of the message/ communication effort.

67. What are the stages for designing a message?

Every company designs a message to reach the targeted market; it can be designed as follows:

1. Message Structure: (Decision on Message presentation, One-sided or Two sided Message, Verbal or

Non-Verbal Message)

2. Message Appeal: (Rational Appeal - Price Appeal, Feature Appeal, Competitive Appeal, Quality

Appeal, Emotional Appeal – Fear Appeal, Sexual Appeal, Musical Appeal, Comfort Appeal,

Relationship Appeal, Romantic Appeal and so on. Other Appeals – Brand Appeal, Reminder Appeal,

Scarcity Appeal and so on),

3. Message format: (On Product – Color, Size and shape, Commercial Clip (Audio-Video) - Facial

Expression, Gestures, Postures, Hair Styles, Audio Clip – Choosing impressive message, words, voice,

pitch and speech rate, Print Media – Decide on Headline, Copy illustration, Color, Space on the paper

and so on) and

4. Message Source: An expert of the product like an advertisement for a baby soap a mother and baby is

required, similarly for an advertisement of a nutritious food, a child is required in the advertising..

68. What means advertising and what are its objectives?

Advertising is any form of paid, non-personal presentation of ideas, goods or services by an identified

sponsor.

Advertising objectives are, 1. To make people aware of the product and its features, 2. To enter into a

new targeted market, 3. To Build a Good will, Brand and company image, 4. To increase sales –

Existing or new product, 5. To support Channel of distribution, 6. To educate the targeted market and

so on

69. What is advertising budget and how is it decided?

Advertising Budget is the approved and allocated budget to be spent on various types of advertising to

achieve the Marketing Objective of the firm.

Advertising Budget is based on the following: 1. Percentage of sales method, 2. Coping the competitors

strategy on advertising, and 3. Executive Judgment ( the decision of the top management)

There are various types of advertising budget which are based on the above three basic points.

70. What means advertising copy and its elements?

Advertising Copy is the verbal or written material, which comprises of the following elements, 1.

Headline, 2. Main Body, 3. Sub-Heads, 4. Pictures, 5. Captions, 6. Slogans, 7. Identification Marks (if

any) or Trademarks, 8. Price, 9. Coupons, 10. Claims, 11. Advertisers Name, Address, Logo, Contact

Details and so on.

71. Explain AIDA model?

The full form or abbreviation of AIDA is Attention, Interest, Desire and Action. AIDA is a simple and

hierarchy communication process in buying as follows:

Attention -> Need Recognition -> Identify a requirement

Interest -> Information Search -> Gathering information

Desire -> Evaluate Alternatives -> Select the best alternative

Action -> Purchase Decision -> Decide on purchase

POST PURCHASE EVALUATION

72. Explain Advertising Agency Decisions?

Advertising is basically in two forms – Internal or in-house Advertising and External or Out-House

Advertising. In in-house advertising the firm creates the advertising copy themselves, while in out-

house advertising is hiring a advertising agency to perform the same.

Advertising agency is a marketing service firm that assists its clients in planning, preparing,

implementation and evaluating various activities of advertising campaign.

The core decisions taken by any advertising agency are: Selection a Advertising Agent, Select the

message, Select the Media, Provide a creative brief and get the creative pitch, Evaluate the

advertisement clip, Finalize the advertising and finally monitor/ evaluate the advertisement.



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73. What means Sales Promotion Mix? And kinds of promotion?

“Sales Promotion encompasses all the tools in the marketing mix whose major role is persuasive

communication”.

Sales Promotions is an irregular planned activity to motivate, stimulate demand to achieve company

objectives.

Sales Promotion is done in three heads – Consumers, Middlemen (Channels of distribution) and

Field Force. The different types of promotion are like Free Samples, Coupons, Discounts, Free with

product, Consumer‟s Contests, spiff money or cash money, Sales contest, Credit Facility, Free Door

Delivery and so on.

74. What is pull and push strategy in pricing/ sales promotion? a. Pull strategy means that the customer is already made aware of the product

through advertisement and other sources, and they create a demand for the product.

Customer demands for the product in the market b. Push Strategy, refers to the products where the manufacturer pushes the product in

the market through various offers for the customers/ dealers and so on.

Manufacturer pushes the product with sales promotional activities

75. What are the concept, features, and steps in Personal Selling?

Personal Selling is a direct, face to face selling, where the seller expresses the product‟s features,

specifications and other offers to the buyer and if required demonstrates the product to closes his sales

deal.

The concept of personal selling is

1. To Create awareness,

2. To Stimulate Sales,

3. To Provide information,

4. To Present and Demonstrate to make a Sale.

The features of personal selling are

1. Direct contact between buyer and seller,

2. Oral conversation,

3. Presentation and Demonstrate the products,

4. Maintain a sales record as it is a very expensive approach.

The Steps in personal selling is,

1. Pre-Sales Preparation,

2. Prospecting,

3. Pre-approach,

4. Approach,

5. Presentation and Demonstration,

6. Handling Objections,

7. Close the sales and

8. Follow Up Action.

76. What means Public Relations, its objectives and Types?

Public relations is an activity used to create and maintain favourable relationship between the

company and people related, which include, Employees, Customers/ Clients, Stakeholders,

Shareholders, Government and Society.

The objective of Public Relations are

1. To publicize company/ Brand

2. To maintain good relationship,

3. To Create Goodwill,

4. To provide information,

5. To stimulate demand for the products/ brand.

The types/ Tools and Functions used by public relations are by,

1. To Publicize by Mass Media (Newspaper, TV/ Radio, Magazines, Journals and so

on),

2. To Conduct and Participate on Events (Export Fair, Motor Show, Special Events on

Products and so on),



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3. To execute effective relationships with customer/ clients, stakeholders,

shareholders, employees and so on.

77. Differentiate Publicity and Public Relations?

SL Characteristics Publicity Public Relations

1 Mode Appears on its own Created by the firm

2 Objective May be good or bad Targets for Good will

3 Messenger Public Representatives of the firm

4 Period Short Term Targets for Long Term

5 Cost No expense to company Company bears the expense

6 Impact May be positive or negative Planned positive

78. Explain in detail Direct Marketing?

Direct Marketing is the conventional marketing approach, where the organization uses one to one

approach through a media to reach the people, to close a sale.

The features are,

1. Interaction (Segment Free Market),

2. Targeting,

3. Control,

4. Continuity

The objectives are

1. To reach maximum people,

2. To Gain Image, Name,

3. To move specific products.

The methods used are

1. Email,

2. Catalogue Marketing,

3. Tele-shopping,

4. Home shopping,

5. Face to Face Selling and so on.

79. What are the basic functions of E-Commerce?

Electronic Commerce involves Marketing, Retailing, Customer Service, Banking, Billing, Corporate

Sector Purchasing, Secure Distribution of data and other Value added services over the INTERNET.

Electronic Commerce is an integrated of communication Services, Data Management, and Security

Mechanisms that allows organizations to exchange information about the sale of goods and services.

E-Commerce may be B2B, B2C, C2C, C2B, and B2G

80. Explain in brief, E-Business, E Marketing, M Commerce, M Marketing and E Networking?

All the above is concerned with the advancement in Information Technology and Mobile Services, which

help to do the business, build contacts also can store the information for future references and for

analysis.

Electronic Business is the application of Internet Technology, to streamline all business processes

which include E Marketing, E Commerce, M Commerce and E Operations. E-Business includes

applications of all related which include E Governance, E Marketing, E Customer Relationship

Marketing, E Banking, E Auctions, E Business Research and E Directories.

Electronic Marketing refers to Internet or Interactive or Virtual or Online Marketing. It will include

Marketing through Emails, Social Sites, Article Marketing, Mobile Marketing and so on.

Mobile Commerce refers to M Business (M for Mobile), where transactions are done by usage of

Mobile, Mobile Commerce differs from Electronic Commerce as in Electronic Commerce software of a

computer is used, while in Mobile Banking various upcoming components like 2G, 3G, also now

browsing too is possible on mobile. Hence Mobile Commerce is placed as the top and hot marketing

device.

Mobile Marketing refers like Mobile Commerce, where SMS and direct talks help to boost the

business in a shortest time span.

Electronic Networking refers to the the network done by Information technology to build a team

work and grab the business.

81. What is Marketing Planning, its concept and steps involved?



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Marketing Planning refers to a part of a business plan, a blueprint, for a specified period from one to

five years, comprising of, development of forecast, objectives, policies, programs, procedures, schedules

and Budgets, to achieve the company objectives.

The concept involved are, 1. Anticipate and develop forecast, 2. Prepare the Objectives, 3. Strategy to

be followed, 4. Policies and Procedures to be adopted, 5. Fixation of Schedules and Budgets.

Steps involved in Marketing Planning Process are basically for the entire organization or for a

specific function. There are 8 steps, bifurcated into two heads:

a. Business Definition: 1. Planning and Organizing, 2. Defining Planning Premise, 3.

Determining Company Objectives, and 4. Selecting the Policies, AND

b. Corporate Appraisal: 1. Review and Refinement, 2. Organizational Planning, 3.

Coordinating and Control and 4. Developing and Implementing Plans.

82. What means Marketing Organization and factors influencing the size and structure?

Marketing Organization is the organization, which is the cluster of activities as Decision on Products,

Marketing Channels, Physical Distribution, Sales Promotion and Prices.

The factors influencing the Marketing Organizations are External and Internal Environment, Internal

Factors include, The company policy, Product Policy, and the people, and the External Environment

will include, Market, Consumer Requirements and Expectations, Business Environment and Channels

of Distribution.

The types of the Marketing Organization can be as 1. Line and Staff Organization, 2. Functional

Organization, 3. Product Based Marketing Organizations, 4. Customer Based Marketing

Organizations, 5. Territory or Geographical Based Marketing Organizations, 6. Complex/ Matrix/

Combined Base Structure.

83. What is Marketing Audit, and what are its features?

Marketing Audit is audit, to study on the performance of the organization; There are several benefits

for the organization,

1. To know on actual achievements made against achievements targeted

2. To Study on actual developments made in the Market,

3. To study about the changes in the External Environment,

4. To know the effectiveness on the Channels of Distribution,

5. To know the effectiveness of advertisements,

6. To know the image of the company,

7. To know on customer‟s reports on after sales service and so on.

The features include,

1. Comprehensive – Horizontal and Vertical Audit,

2. Systematic,

3. Independent,

4. Periodic Audit.

84. What are the components for Marketing Audit?

The components of Marketing Audit, are,

1. Marketing Environment Audit (a. Macro Environment Audit comprising of Audit on

Demographic, Economic, Technological, Political and Cultural Audit, and b. Task Environment

Audit, comprising of Audit in Market, Customers, Customers, Distribution, Dealers, Facilitators

and Marketing Firms and Public),

2. Marketing Strategy Audit (Audit on company objectives, that is a. Mission, Marketing Objectives and

Goals and 3. Strategy),

3. Marketing Organizational Audit (Audit on evaluating the organization‟s capability – a. Formal

Structure, b. Functional Efficiency, 3. Interface Efficiency),

4. Marketing System Audit (Audit of, a. Marketing Information Systems, b. Marketing Planning Systems,

c. Marketing Control Systems, and d. New Product Development Systems)

5. Marketing Productivity Audit (Audit on profits, which involves a. Profitability Analysis, b. Cost-

Effectiveness Analysis.

6. Marketing Function Audit (Audit on 4Ps of Marketing Mix which include, a. Product, b. Price, c. Place

(Distribution) and Promotion.)

85. Explain Marketing Audit and its process?



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Marketing Audit is audit, to study on the performance of the organization; There are several benefits

for the organization,

1. To know on actual achievements made against achievements targeted

2. To Study on actual developments made in the Market,

3. To study about the changes in the External Environment,

4. To know the effectiveness on the Channels of Distribution,

5. To know the effectiveness of advertisements,

6. To know the image of the company,

7. To know on customer‟s reports on after sales service and so on.

The process of Marketing Audit is as follows:

1. Objective and the scope of the Audit

2. Preparing a plan

3. Executing the plan in collection of data through Primary and Secondary Sources

4. Analyzing the data procured through various formulas and marketing analyzing

tools.

5. Prepare the report

6. Present the report with findings, suggestions and conclusions.

86. What is Brand Equity?

Brand Equity is a set of brand assets and liabilities linked to a brand, its name and symbol

add to or subtract from the value provided by a product or service to a firm and/ or to that

firm‟s customers.

87. What are the factors influencing buying behavior? Economical, Cultural, Social, Political and Legal factors (PEST)

88. Explain the Marketing Challenges in the Global Economic Scenario?

Market‟s Needs and Wants, Costing/ Pricing, Quality and Demand, Leverage, Rapid Growth

of Technology, Competition, Privatization, Regional Legal Agreements, Rapid Developments

in infrastructure – Roads, Warehousing and Telecommunications and so on

89. “Is Marketing and Selling the same” - Discuss

No, Marketing is concerned with consumer‟s satisfaction, while selling is concerned with

transfer of goods and services from manufacturer to consumers/ customers.

90. Explain differentiated, undifferentiated and concentrated marketing?

In Differentiated Marketing, every segment will have an independent strategy on pricing,

sales promotion and distribution,

In Un-Differentiated Marketing, the firm follows a uniform strategy on pricing, distribution

and sales strategy,

In Concentrated Marketing, the firm targets a selected segment and adopts all measures to

be the leader.

91. Draw and explain the stages of consumer buying decision process?

Problem Recognition -> Pre-purchase information Search -> Evaluation of alternatives ->

Purchase Decision -> Post Purchase Behavior.

92. What means STP in Marketing?

Segmentation,

Targeting and

Positioning, for branding a product or a firm or an Individual and so on

93. Explain Consumerism and role of Consumer Protection Act 1986?



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Consumerism is a social movement seeking to augment the rights and powers of the buyers

in relation to sellers. Consumerism is to protect consumers from Right to safety, Right to

choose, Right to seek redressal, Right to healthy environment, Right to be informed, Right to

be heard, Right to consumer education and Right to basic needs.

94. Explain in detail the basis of identifying target customers?

a. Market Attractiveness (Market Factors, Competition and Political/ Social Factors),

b. Firm’s Capabilities to serve consumers in a selected segment (Cost Advantage,

Exploitable Marketing resources, Technological developments in the segment and

Managerial Capability and c. Commitment.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

If you have an excellent and effective,

Human Resources Department,

Finance Department,

Production Departments,

Still, it will never solve your purpose, until you are capable to

sell a PRODUCT or SERVICE… that is MARKETING

DEPARTMENT,

~~~~~ FOCUS ONLY ON SALES AND MARKETING, SMILE WILL FOLLOW IN YOU, AND ALL

OTHER DEPARTMENTS, LIKE HR, FINANCE OR PRODUCTION…..

“Select your career in Marketing, You are a mini-MD of the firm who represent the

firm…”

Sanjeev Kumar Singh..,

91640 76660 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

~~~ ALL THE BEST ~~~

1 marketing notes bbm sem 2

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Transcript of 1 marketing notes bbm sem 2