Part A

1. A place for buying and selling activities take place is called ________. Market
2. Which of the following is not an element of the marketing mix? Target market
3. In marketing mix, which four P’s are covered Product, Price.
Place, Promotion
4. Who is the father of modern marketing? Philip Kotler
5. Aggressive selling is a characteristic of which of the following concepts of marketing? Selling Concept
6. This P is not a part of the 7Ps of marketing mix? Purpose
7. As per the value delivery process Marketing comes at
the beginning of
planning
8. The formula ____ is the essence of strategic marketing Segmenting,
Targeting,
Positioning

9. Marketing is a process which aims at ____. Satisfying customers

10. Which one of the following is not part of the marketing plan structure? Determine re-
evaluation
requirements
11. Which is not a micro environmental factor Economic condition
12. Which one of these is not an element of the marketing information system? Marketing insight
system
13. Which one of these quantitative methods is being used more nowadays? Online research
14. What is the primary goal of CRM? Improving customer
satisfaction and
relationships
15. What does the acronym CLV stand for? Customer lifetime
value
16. ------- is a branch which deals with the various stages a consumer goes through before Consumer behaviour
purchasing products or services for his end use.
17. The first step of the buying process is recognition of ____ by the customer. Need or problem
18. ____ is the final step in the buying decision making process Post purchase
19. ___ is the systematic collection and analysis of publicly available information about Marketing
consumers, competitors, and developments in the marketing environment. intelligence
20. The ________ consists of all the organizations that acquire goods and services used in Business market
the production of other services or products that are sold, rented or supplied to others
21. M&S sells clothes aimed at males, females, adults and children. This is an example of Age and gender
segmentation according to
22. Which of following best describes the term, market segmentation? Dividing the market
into different groups
based on needs
23. A runner-up firm that is fighting hard to increase its market share in an industry. Market challenger
24. A strategy for market followers Counterfeiter
25. Anything that can be offered to a market for attention, acquisition, use or consumption Product
that might satisfy a want or need is called
26. An organization with several product lines has which one of the following mix that Product mix
 consists of all the product lines and items which a particular seller offers for sale?
27. The ______ of Product Life Cycle normally keeps on lasting for a longer period than Maturity
other stages and sales level falls flat due to market saturation.
28. _____ is attaching a tag with a product that describes it. Labelling
29. Services are typically produced and consumed simultaneously. This is an example of the Inseparability
________characteristic of services
30. All of the following are examples of services EXCEPT Computer software
31. The exchange value of a good service in terms of money is Price.
32. The process of setting a low initial price for attracting a large number of buyers quickly Penetration pricing
to cover a large market share is known as
33. A ____________________ is a set of interdependent organizations involved in the Distribution channel
process of making products or services available for end-users
34. In the distribution channel ____ has the direct touch with consumers. Retailer
35. All of the following are types of non-store retailing, except Chain stores
36. Marketing channel that involves no intermediaries to made their products available to Direct Channel
final buyers is classified as
37. Logistics means ______________. Marketing channel
38. ______ includes all activities involved in selling goods and services to those buying for Wholesaling
resale or business use
39. A reduction in price on purchase during a stated period of time is known as ______ Discount
40. Value-based pricing is a pricing strategy in which the product’s price is based on Value based pricing
perceived value delivered to the customer instead of the actual cost of the product
41. The ultimate goal of integrated marketing communication is____ Influence the
behaviour of the
consumers
42. ____ refers to the process by which the receiver interprets the sender’s message in the Decoding
communication process
43. The integrated marketing communication success can be measured including all except Gross ratio points
44. Advertisement promotes_________. Sales.
45. Which tool of the promotional mix consists of short-term incentives to encourages the Sales promotion
sale of a product or service?
46. _____ is a form of direct marketing that allows a company to sell products and services Catalogue marketing
from a printed or online catalogue.
47. Which of the following is not a form of media advertising? Sales promotion
48. Internal marketing deals with Identify and taking
care of employees
needs and wants
49. Which of the following is NOT a Social Media Platform? Google
50. Company sales representative selling its product to wholesaler is an example of ____ Personal selling
 Part B
Unit 1

1. Explain the scope of marketing?

Scope of Marketing:

Marketing, a dynamic part of social science, has evolved from just buying and selling to
encompassing customer satisfaction, relationship management, and more.

1. Products and Services: Central to marketing, involving product quality, design, branding,
packaging, and trademarks.
2. Marketing Research: Analysing market aspects, customer types, behaviours, and attitudes
to inform successful marketing strategies.
3. Channel of Distribution: Pathways through intermediaries like wholesalers and retailers,
facilitating the transfer of goods from producers to consumers.
4. Physical Distribution: Managing transportation, warehousing, inventory control, and order
processing to ensure goods reach consumers.
5. Promotional Decisions: Informing the market about products through advertising, sales
promotions, personal selling, and public relations.
6. Pricing Decisions: Setting prices to generate revenue, involving pricing policies, strategies,
discounts, and commissions.
7. Environmental Analysis: Studying macro and micro factors like economic, political,
social, and technological environments to inform corporate and marketing strategies.
8. Feedback from Customers: Developing mechanisms to gather customer feedback for
improving products and services.
9. Responsibility towards Society: Ensuring businesses are socially responsible, protecting
and promoting societal interests, and being accountable to employees, consumers, and
shareholders.

Marketing's scope revolves around anything impacting customer satisfaction and involves
comprehensive activities to achieve business success.

2. Explain the main functions of marketing.

The main functions of marketing encompass a range of activities that collectively

contribute to achieving organizational goals and satisfying customer needs. Here are the
key functions:
1. Study of Consumer Wants and Needs
Goods are produced to satisfy consumer wants. Therefore, the study is done to identify
consumer needs and wants. These needs and wants motivate the consumer to purchase.

2. Study of Consumer Behavior

Marketers perform a study of consumer behaviour. Analysis of buyer behaviour helps
marketers in market segmentation and targeting.

3. Production Planning and Development

Product planning and development starts with the generation of product ideas and ends
with product development and commercialization. Product planning includes
 everything from branding and packaging to product line expansion and contraction.

4. Pricing Policies
The marketer has to determine pricing policies for their products. Pricing policies differ
from product to product. It depends on the level of competition, product life cycle,
marketing goals, and objectives, etc.

5. Distribution
The study of distribution channels is important in marketing. For maximum sales and
profit, goods are required to be distributed to the maximum consumers at minimum
cost.

6. Promotion
Promotion includes personal selling, sales promotion, and advertising. The right
promotion mix is crucial in the accomplishment of marketing goals.

7. Consumer Satisfaction
The product or service offered must satisfy the consumer. Consumer satisfaction is the
major objective of marketing.

8. Marketing Control
The marketing audit is done to control the marketing activities.

3. What are the different marketing philosophies?

Production Concept
This concept was based on the assumption that customers are primarily interested in products
which are accessible and affordable. This concept was introduced at a time when business was
focused mainly on production. It says that a business will be able to lower costs by producing more
quantity or mass production of goods.Solely focusing on producing goods may lead to the firm
deviating from its objective.
Example: Early industrial age companies like Ford, where mass production of standardized
products was key.
Product Concept
The product concept is based on the assumption that customers will be more inclined towards
products that are offering more quality, innovative features and top-level performance.In this type
of marketing concept, a business focuses on creating high-quality products and refining it every
time in order to develop a better and improved product.
Example: Tech companies like Apple, which focus on creating superior and innovative products.

Selling Concept
While the previous two concepts focused on production, the selling concept is focused on selling. It
believes that customers will be buying products only when the product is aggressively marketed by
the company. It does not focus on building relationships with customers, and ensuring customer
satisfaction is also not deemed necessary.
 Example: Insurance companies often use this approach, relying on aggressive sales tactics to sell
policies.

Marketing Concept
A marketing concept places the center of focus on the customer. All the activities that are
undertaken by an organization are done keeping the customer in mind. The organizations are more
concerned about creating value propositions for the customers, which will differentiate them from
the competition.
Example: Companies like Amazon, which prioritize customer satisfaction and tailor their offerings
based on consumer insights.

Societal Marketing Concept:

The societal marketing concept emphasizes balancing company profits, consumer desires, and
societal well-being. It operates on the assumption that companies should not only focus on profit
but also consider the long-term welfare of society. This philosophy encourages businesses to adopt
sustainable and socially responsible marketing practices.
Example: Companies like Patagonia, which focus on environmental sustainability and ethical
business practices.

4. Discuss the role of marketing in an organization.

The role of marketing refers to the broader purpose and impact of marketing within an
organization. It encompasses the strategic objectives that marketing aims to achieve and the value it
brings to the organization as a whole. The role of marketing includes:

1. Understanding Customer Needs: Providing insights into what customers want and need,
guiding the organization's overall strategy.
2. Creating Value: Developing and communicating products that offer value to customers
and differentiate the organization from competitors.
3. Building Brand Awareness: Establishing a strong brand presence in the market to attract
and retain customers.
4. Driving Sales and Revenue: Generating demand and facilitating sales to contribute to the
organization's financial goals.
5. Customer Relationship Management: Building long-term relationships with customers to
drive loyalty and repeat business.
6. Market Expansion: Identifying and pursuing new market opportunities to grow the
business.
7. Innovation and Product Development: Driving product innovation based on market
research and customer feedback.
8. Competitive Advantage: Helping the organization achieve and maintain a competitive
edge in the market.
9. Aligning with Business Goals: Ensuring marketing strategies support and align with the
organization's overall objectives.
10. Sustainability and CSR: Promoting corporate social responsibility and sustainability
initiatives to enhance the organization's reputation and fulfill societal obligations.
 5. Explain marketing mix elements.

The marketing mix, known as the "4 Ps," forms the cornerstone of a marketing strategy,
consisting of Product, Price, Place, and Promotion:
1. Product: This refers to the tangible goods or intangible services a company offers to
satisfy customer needs and wants. Key decisions include product design, features, quality,
branding, packaging, and customer service. The objective is to develop offerings that
meet customer expectations and stand out from competitors.
2. Price: This is the amount of money customers are willing to pay for a product or service.
Pricing decisions involve setting a price that reflects the perceived value to customers,
aligns with market conditions, and supports profit objectives. Pricing strategies can
include penetration pricing (low price to gain market share), skimming pricing (high
initial price, lowering over time), competitive pricing (matching competitors), and value-
based pricing (based on perceived value).
3. Place (Distribution): This pertains to the distribution channels through which products or
services are made available to customers. It includes selecting the appropriate channels
(direct sales, retail, e-commerce), managing logistics and inventory, and ensuring product
availability at the right place and time to enhance customer satisfaction and sales.
4. Promotion: This involves activities used to communicate the benefits and value of
products or services to customers and persuade them to purchase. Promotion strategies
encompass advertising, personal selling, sales promotions, public relations, and direct
marketing. The goal is to create awareness, generate interest, stimulate demand, and
influence purchase decisions.
These elements are interconnected and must be coordinated to create a cohesive strategy that
effectively reaches and satisfies target customers, optimizing resource allocation to achieve
organizational goals.

Unit 2
1. Why marketing environment is important?
The marketing environment is crucial for several reasons, which highlight its importance in
shaping the success and strategies of businesses. Here are key points explaining why the
marketing environment is important:
• Understanding Customer Needs: The marketing environment provides insights into
customer preferences, behaviors, and trends. By analyzing factors such as demographic
changes, social trends, and cultural shifts, organizations can better understand and
anticipate customer needs. This understanding helps in developing products and services
that are relevant and appealing to target markets.
• Identifying Opportunities and Threats: The marketing environment encompasses both
external and internal factors that impact a company's operations. External factors include
competitors, economic conditions, technological advancements, legal and regulatory
changes, and socio- cultural trends. By monitoring these factors, organizations can
identify opportunities for growth and expansion, as well as potential threats that may
affect their market position.
• Adapting Marketing Strategies: The dynamic nature of the marketing environment
necessitates continuous adaptation of marketing strategies. Changes in consumer
behavior, market trends, or competitive actions may require adjustments in product
offerings, pricing strategies, distribution channels, and promotional activities.
Organizations that are responsive to changes in the environment can maintain
competitiveness and capitalize on emerging opportunities.
• Risk Management: Understanding the marketing environment allows organizations to
 assess and manage risks effectively. By anticipating potential challenges such as
economic downturns, regulatory changes, or shifts in consumer preferences, companies
can develop contingency plans and mitigation strategies. This proactive approach
minimizes the impact of external threats on business performance.
• Strategic Decision-Making: The marketing environment provides the context for
strategic decision-making within organizations. It informs decisions related to market
segmentation, targeting, positioning, and resource allocation. Strategic decisions
based on a thorough understanding of the marketing environment are more likely to
align with market needs and competitive dynamics, enhancing the likelihood of
success.
In summary, the marketing environment is important because it provides valuable insights into
customer behavior, identifies opportunities and threats, facilitates adaptive marketing strategies,
supports effective risk management, and informs strategic decision-making. Organizations that
effectively monitor and respond to changes in the marketing environment are better positioned to
achieve sustainable growth and maintain a competitive advantage in the marketplace.

2. Explain micro environmental factors which influence business

Microenvironment refers to the environment, which is closely linked to the organization, and
directly affects organizational activities. Let us discuss the microenvironment factors in the
following points:

i. Suppliers: It provides raw material to produce goods and services. Suppliers can influence the
profit of an organization because the price of raw material determines the final price of the product.
Organizations need to monitor suppliers on a regular basis to know the supply shortages and
change in the price of inputs.

ii. Marketing Intermediaries: Intermediaries help a company to promote, sell and distribute its
products to its customers. Marketing intermediaries act as middlemen between various stages in the
distribution chain. Intermediaries make the accessibility of the products easier for customers.

iii. Customers: Customers buy the product of the organization for final consumption. The main
goal of an organization is customer satisfaction. The organization undertakes the research and
development activities to analyse the needs of customers and manufacture products according to
those needs.

iv. Competitors: It helps an organization to differentiate its product to maintain position in the
market. Competition refers to a situation where various organizations offer similar products and try
to gain market share by adopting different marketing strategies.

3. Explain macro environmental factors which influence business.

Macro environment involves a set of environmental factors that is beyond the control of an
organization. These factors influence the organizational activities to a significant extent.

The macro-environment comprises six forces: Economic, Political, Demographic, Socio-

cultural, Technological, and Ecological.
1. Economic Environment: Influences customer buying power and spending. Key factors
include GDP, inflation, taxes, and employment rates. Companies must analyse these
 before entering new markets to gauge consumer spending capacity.
2. Political Environment: Involves laws, government agencies, and pressure groups
affecting businesses. Firms must understand the political and legal landscape, including
regulations on environmental protection, pricing, safety, and competition, to succeed in
foreign markets.
3. Demographic Environment: Focuses on human populations' size, age, gender,
occupation, and density. Demographic changes lead to evolving markets, requiring
businesses to adapt their marketing strategies to meet new demands.
4. Socio-cultural Environment: Relates to societal values, beliefs, and behaviours shaped
by cultural and social groups. Misunderstanding these can lead to marketing failures.
Factors like individualism, power distance, and gender roles influence consumer
behaviour.
5. Technological Environment: Involves innovations creating new market opportunities
and products. Businesses must stay updated with technological changes to avoid
obsolescence and leverage new opportunities.
6. Ecological Environment: Concerns natural resources and environmental impacts. Issues
like pollution, resource scarcity, and government regulations demand businesses adopt
sustainable practices, addressing consumer demands for eco-friendly products.

4. How does customer relationship improve a business?

Importance of Customer Relationship Management (CRM)

Enhanced Customer Loyalty: Strong customer relationships cultivate loyalty, leading to repeat
purchases, brand preference, and referrals. This reduces churn and increases customer lifetime
value, contributing to stable revenue and profitability.

Increased Customer Retention: CRM helps businesses understand customer needs, preferences,
and behaviours. Personalized interactions and proactive issue resolution enhance satisfaction and
reduce the likelihood of customers switching to competitors.

Improved Customer Satisfaction: Effective CRM ensures consistent, high-quality service across
all touchpoints. Timely responses, efficient issue resolution, and personalized communication
create positive customer experiences, leading to brand advocacy and positive word-of-mouth.

Better Understanding of Customer Needs: CRM systems gather and analyse customer data,
providing insights into trends, preferences, and pain points. This allows businesses to tailor
products, services, and marketing campaigns to better meet customer expectations and stay
competitive.

Increased Sales and Revenue: Strong customer relationships boost conversion rates and sales
opportunities. Loyal customers are more receptive to cross-selling and upselling efforts, while
personalized recommendations based on customer insights drive incremental sales and revenue
growth.

Conclusion

CRM is integral to business improvement by fostering loyalty, enhancing retention, improving

satisfaction, understanding customer needs, and driving sales and revenue growth. Businesses that
prioritize customer relationships are better positioned for sustainable success in competitive
markets.

5. Discuss the steps involved in the buying decision process.

Buying Decision Process

The buying decision process, or consumer decision-making process, involves several stages:

1. Recognition of Need: The process begins when a consumer identifies a problem or need,
triggered by internal (hunger, thirst) or external stimuli (advertising, recommendations).
This recognition initiates the decision-making process.
2. Information Search: Consumers then seek information about potential solutions. This
search can involve internal sources (memory, past experiences) or external sources (friends,
family, online reviews, advertisements). Gathering information helps consumers evaluate
options and make informed decisions.
3. Evaluation of Alternatives: Consumers compare different options based on criteria like
price, quality, features, brand reputation, and benefits. They use mental shortcuts
(heuristics) or deliberate decision-making processes depending on the purchase's
complexity and importance.
4. Purchase Decision: After evaluating alternatives, consumers make their purchase decision.
This decision can be influenced by product availability, pricing, promotional offers, and
personal preferences. They may purchase immediately or delay based on timing, budget, or
further deliberation.
5. Post-Purchase Evaluation: After purchasing, consumers assess their satisfaction with the
product or service. Positive experiences reinforce brand loyalty and repeat purchases, while
dissatisfaction may lead consumers to seek alternatives or voice concerns, affecting brand
reputation.

Conclusion

Understanding these steps helps marketers tailor strategies, messaging, and customer experiences
to positively influence each stage, encouraging consumers to choose their products or services over
competitors. This anticipation of consumer behaviour aids businesses in addressing needs
effectively and building long-term customer relationships.

Unit 3
1. Explain the strategies adopted by market followers.

Market Followers Strategies

Market followers observe and emulate market leaders to capitalize on their successes while
minimizing risks. Here are common strategies they adopt:

1. Imitation Strategy:
o Product Imitation: Followers replicate products/services of market leaders,
attracting customers familiar with established offerings.
 o Marketing Mix Imitation: They mimic leaders' pricing, distribution, promotions,
and branding, leveraging successful marketing tactics.
2. Improvement Strategy:
o Product Improvement: Followers enhance features, quality, or performance of
existing products to differentiate themselves.
o Service Enhancement: They offer superior customer service, warranties, or post-
purchase support for added value.
3. Niche Strategy:
o Targeting Specific Segments: Followers focus on niche markets or underserved
segments, addressing specific customer needs.
o Geographical Niche: They enter geographic areas not well-served by leaders, using
local knowledge and customized marketing.
4. Aggressive Pricing Strategy:
o Price Competitiveness: Followers undercut leaders with discounts, promotions,
and value-added bundles to attract price-sensitive customers.
o Cost Leadership: They optimize operations to reduce costs, offering competitive
prices while maintaining profitability.
5. Fast Follower Strategy:
o Timing Advantage: Followers monitor market trends and capitalize on successful
innovations quickly, avoiding early adoption risks.
o Flexibility and Adaptability: They remain agile to adapt swiftly to changes in
consumer preferences, technology, or competitive actions.

2. Discuss the levels of product.

Levels of Product in Marketing Management

Understanding these product levels helps marketers create strategies that address core benefits,
essential features, customer expectations, added value, and future innovations, enhancing customer
satisfaction, competitive advantage, and long-term success.

1. Core Benefit:
The core benefit is the primary purpose or fundamental value a customer seeks. It addresses
the underlying need or problem. For example, buying a smartphone for communication and
information access.
2. Generic Product:
The generic product includes the basic version fulfilling the core benefit, encompassing
essential features and attributes for functionality. For smartphones, this includes
components like display, processor, battery, and basic communication capabilities.
3. Expected Product:
The expected product comprises the attributes and features customers anticipate in a
product category. These minimum requirements must be met to avoid customer
dissatisfaction. For smartphones, expected features include a good-quality camera, app
compatibility, and internet connectivity.
4. Augmented Product:
The augmented product level offers additional features and benefits exceeding customer
expectations and differentiating the product. These extras enhance the overall experience,
such as warranties, customer support, packaging, and after-sales services. For smartphones,
augmented features might include extended warranty, fast charging, or exclusive app
access.
 5. Potential Product:
The potential product level envisions future possibilities and innovations. These
improvements, though not currently available, anticipate changing customer needs and
technological advancements. For smartphones, potential products could be a gaming kit or
earbuds, surprising customers with new enhancements.

3. Write short notes on targeting.

Targeting is the process of identifying and selecting a specific group of people to receive a
marketing message. It helps marketers to deliver more relevant, personalized, and effective
marketing messages to their audience. Targeting is done by dividing the target audience into
smaller segments based on shared characteristics, such as demographics, interests, and
behaviour. It involves strategically focusing messages, offers, and campaigns on the consumer
segment most likely to respond favourably. Targeting allows marketers to optimize return on
investment by concentrating resources on reaching and resonating with their ideal buyers. By
targeting the right audience, businesses can maximize the effectiveness of their marketing
campaigns.
There are many ways to target a marketing message. Some common methods include:
• Demographic targeting: This involves targeting people based on age, gender, income,
education level, marital status, and other demographic factors.
• Geographic targeting: This involves targeting people based on location, such as country, state,
or city.
• Psychographic targeting: This involves targeting people based on their interests, values, and
lifestyle.
• Behavioural targeting: This involves targeting people based on their online behaviour, such as
the websites they visit, the apps they use, and the products they purchase.
• Contextual targeting: When you can’t target people based on who they are or what they do,
placing your ads in context of activities and services that align with your target market can
enable contextual targeting

4. “Packaging is a marketing tool”- justify.

Effective packaging can actually help a company attract consumers to their product. It
can be the tool that sets apart their product in a vast sea of options that the consumer
has at their disposal. A good packaging can actually add to the perceived value of a
product.

• Protection: The first and the most obvious use of packaging is protection. It physically
protects the goods from damage that may be caused due to environmental factors. It is the
protection against breaking, moisture, dust, temperature changes etc.
• Information Transmission: Packaging and labelling are essential tools to inform the
customer about the product. They relay important information about directions for use,
storage instructions, ingredients, warnings, helpline information and
any government required warnings.
• Convenience: Goods have to be transported, distributed, stored and warehoused during
their journey from production to consumption. Packaging will make the process of handling
goods more convenient for all parties involved.
• Security: To ensure that there is no tampering with the goods packaging is crucial. The
package of a product will secure the goods from any foreign elements or alterations. High-
quality packages will reduce the risk of any pilferage.
5. Explain the different stages of product life cycle.

Stages of the Product Life Cycle

• Introduction Stage:
o Purpose: Launch new product; build awareness.
o Characteristics: High marketing costs, low sales, minimal competition.
o Example: New smartphone launch with extensive advertising.
• Growth Stage:
o Purpose: Increase market share and expand presence.
o Characteristics: Rising sales, growing market, increased competition.
o Example: Smartphone gaining popularity, competitors entering market.
• Maturity Stage:
o Purpose: Maintain market position and maximize profitability.
o Characteristics: Sales peak, high competition, profit margins decrease.
o Example: Well-established smartphone brand facing intense competition.
• Decline Stage:
o Purpose: Manage product retirement or revamp.
o Characteristics: Declining sales, reduced demand, possible market exit.
o Example: Typewriters being phased out as digital alternatives dominate.Each stage
requires tailored marketing strategies to address changes in consumer demand,
competition, and product performance.

Unit 4
1. Discuss the factors that influences pricing of a product.

Several factors influence product pricing.

a. Cost of Product is crucial, encompassing fixed costs (e.g., machinery), variable costs
(e.g., labour), and semi-variable costs (e.g., sales commissions). The primary goal is to
set a price that covers these costs while ensuring profitability.
b. Demand for the Product plays a significant role; products with elastic demand often
have lower prices, as small price changes can greatly affect sales. Conversely, products
with inelastic demand allow for higher pricing with minimal impact on demand.
c. The Degree of Competition also affects pricing. In highly competitive markets, prices
tend to be lower to attract and retain customers. However, with limited competition,
firms have more flexibility to set higher prices.
d. Government Regulations can impact pricing, particularly for essential commodities
where price limits may be imposed to protect consumers.
e. Objectives of Pricing vary: firms may set high prices for short-term profit
maximization, lower prices to gain market share, or competitive prices to survive in a
crowded market. Higher prices may also reflect superior quality.

Finally, the Method of Marketing, including factors like advertising and branding,
influences pricing decisions. High marketing expenses often lead to higher product prices to
cover these costs.

2. Explain the different marketing channels.

Marketing channels, or distribution channels, are pathways through which products move from
producers to consumers. Key types include:

• Direct Selling: Products are sold directly to consumers via company-owned stores, e-
commerce sites, or sales reps, allowing control over the customer experience and direct
communication. Examples include Apple’s own stores and website.
• Retailers: Businesses that buy from manufacturers or wholesalers and sell to consumers,
either in physical stores or online. They offer convenience and handle inventory and
customer service. Examples are Walmart and Amazon.
• Wholesalers: Purchase in bulk from manufacturers and sell in smaller quantities to retailers
or businesses, offering bulk buying efficiencies and logistical support. Examples include
Sysco and Ingram Micro.
• Distributors: Independent entities that purchase from manufacturers and sell to retailers or
end customers, providing market expertise and localized distribution. Examples include
Avnet and McKesson.
• Online Channels: Digital platforms for buying and selling, such as e-commerce sites and
social media marketplaces, offering global reach and 24/7 accessibility. Examples are
Amazon and Alibaba.

Effective channel management is crucial for optimizing distribution and maximizing sales.

3. What are the new aspects in present retail environment.

The retail environment is evolving rapidly due to several key trends:

• E-commerce and Omnichannel Retailing: Integration of online and offline channels has
led to seamless shopping experiences. Retailers invest in digital tech and logistics to
enhance convenience and personalization.
• Personalization and Customer Experience: Tailoring products and marketing to
individual preferences through data analytics and AI improves customer satisfaction and
loyalty.
• Mobile Commerce (M-commerce): Mobile device usage has increased online shopping,
prompting retailers to optimize sites for mobile and offer mobile payment options.
• Social Commerce: Utilizing social media for shopping and transactions boosts engagement
and sales through influencer marketing and shoppable posts.
• Sustainability and Ethical Consumerism: Consumers demand eco-friendly and ethical
products, driving retailers to adopt sustainable practices and transparent supply chains.
• Fast Fashion and Agile Retailing: Quick response to fashion trends with agile supply
chains helps capture consumer interest and reduce time-to-market.

Retailers adapting to these trends with technology, customer focus, and sustainability are better
positioned for success.

4. Explain the different types of non-store retailing.

Non-store retailing includes various methods of selling without a physical store:

• E-commerce: Selling via online platforms like websites and mobile apps, offering a wide
range of products and convenience. Examples: Amazon, eBay.
 • Direct Selling: Personal sales through home visits or network marketing, focusing on
personal interactions. Examples: Avon, Tupperware.
• Telemarketing: Selling over the phone, used for both outbound sales and customer
inquiries. Examples: Subscription services, insurance companies.
• Catalog Retailing: Selling through printed or digital catalogs, allowing orders by mail,
phone, or online. Examples: IKEA, LL Bean.
• Automatic Vending: Selling via vending machines in various locations, providing 24/7
access. Examples: Coca-Cola machines, Redbox.
• Television Home Shopping: Selling through TV channels with live demos and special
offers. Examples: QVC, HSN.

These methods offer convenience, direct engagement, and broad reach, adapting to consumer
preferences and reducing overhead costs.

5. Define channel conflict. Explain its types.

Channel conflict arises when disagreements occur among distribution channel members,
disrupting the flow of goods and affecting efficiency. Here’s an overview of the types of channel
conflict:
• Horizontal Channel Conflict: This conflict happens between intermediaries at
the same level, such as competing retailers or wholesalers. For example, two
franchisees of the same fast-food brand located nearby might clash over pricing
strategies and promotions, potentially leading to a price war and customer
confusion.
• Vertical Channel Conflict: This occurs between different levels of the channel,
like a manufacturer and a retailer. Issues may arise from pricing discrepancies or
manufacturers bypassing intermediaries to sell directly to consumers. For
instance, if a manufacturer starts selling online at lower prices than those offered
by retail partners, it can create tension and conflict over pricing and sales
strategies.
• Multichannel Conflict: This type of conflict arises when a company’s multiple
sales channels, such as physical stores and e-commerce sites, compete against
each other. Problems can include inconsistent pricing or overlapping market
coverage. For example, a brand that sells through both physical stores and an
online site might face conflict if the online site offers lower prices or exclusive
promotions, leading to dissatisfaction among other channel partners.
Managing channel conflict requires clear communication, consistent policies, and collaborative
strategies to align interests, enhance cooperation, and ensure efficient distribution, ultimately
improving customer satisfaction and maintaining competitiveness.

Unit 5
1. Discuss the role of integrated marketing mix communication.

Integrated Marketing Communications (IMC) ensures a consistent and cohesive brand message
across all channels and mediums, enhancing marketing effectiveness.

• Consistency and Clarity: IMC unifies messaging across platforms (e.g., TV ads, social
media, email) to reinforce brand identity and reduce confusion, making the brand more
recognizable and trustworthy.
 • Increased Effectiveness and Efficiency: By integrating communications, IMC optimizes
resource use and amplifies the message across various channels, increasing impact and
reach. For example, a product launch using digital ads, influencer marketing, and events
reaches a broader audience.
• Enhanced Customer Experience: IMC creates a seamless customer journey, ensuring
consistent experiences across all touchpoints, which boosts satisfaction and loyalty.
• Building Stronger Relationships: IMC uses customer data to deliver personalized
communications, fostering dialogue and long-term loyalty.
• Improved Brand Positioning: IMC helps establish a distinct market position by
consistently conveying the brand’s unique value proposition across all channels.

Overall, IMC aligns marketing efforts for a unified, compelling brand message, improving
campaign effectiveness and customer relationships.

2. What are the objectives of advertisement in a business.

Advertising in business serves multiple vital objectives:

• Creating Awareness: Introduces new or existing products to potential customers. Example:

Launch campaign for a new smartphone.
• Generating Interest: Stimulates curiosity about the product’s benefits. Example: Ad
showcasing a fitness tracker’s lifestyle advantages.
• Encouraging Trial: Motivates initial use through samples or discounts. Example: Free trial
for new software.
• Creating Demand: Drives preference by highlighting the product’s benefits. Example: Ad
demonstrating superior quality of a clothing brand.
• Building Brand Image and Loyalty: Reinforces a positive brand image to foster loyalty.
Example: Ads promoting sustainability.
• Providing Information: Educates consumers about the product’s features and benefits.
Example: Ad explaining a kitchen appliance’s innovations.
• Stimulating Immediate Action: Creates urgency for short-term sales. Example: Limited-
time offer ad.
• Enhancing Brand Equity: Strengthens brand value through consistent advertising.
Example: Campaigns associating the brand with innovation.
• Supporting Sales Efforts: Complements sales team activities with aligned messaging.
Example: Ads supporting sales promotions.
• Counteracting Competition: Mitigates competitors’ impact. Example: Ads highlighting
advantages over competitors.

Effective advertising aligns with these objectives to boost brand identity, consumer education, and
market position.

3. Define sales promotion. Explain its objectives.

Sales promotion involves marketing activities designed to boost short-term sales and attract or
retain customers through added value or incentives. Key objectives include:
 • Increase Short-Term Sales: Boost sales volume quickly through promotions. Example:
Limited-time discounts on popular products.
• Attract New Customers: Draw in new buyers with attractive offers. Example: Free
samples to entice first-time users.
• Encourage Repeat Purchases: Build loyalty and increase purchase frequency. Example:
Loyalty programs offering rewards for repeat purchases.
• Clear Excess Inventory: Reduce surplus stock with special promotions. Example:
Clearance sales with deep discounts.
• Enhance Brand Awareness: Increase brand visibility and recognition. Example: Contests
or sweepstakes to engage customers.
• Combat Competition: Counter competitors’ efforts and retain market share. Example:
Price matching or special deals.
• Introduce New Products: Drive initial trials and adoption of new products. Example:
Introductory pricing or bundled deals.
• Stimulate Demand During Off-Peak Periods: Balance sales across the year. Example:
Holiday-themed promotions.

Sales promotions are essential for driving immediate sales, expanding customer bases, and
maintaining market competitiveness.

4. Write short notes on social media marketing.

Social media marketing uses platforms like Facebook, Instagram, Twitter, LinkedIn, TikTok, and
YouTube to promote products and engage with customers. Key elements include:

• Platform Selection: Choosing platforms based on target audience preferences and content
type.
• Content Creation: Developing engaging posts, videos, stories, and user-generated content
aligned with brand goals.
• Audience Engagement: Building relationships through interactions, polls, contests, and
responding to comments.
• Advertising and Promotion: Utilizing paid ads, including sponsored posts and influencer
partnerships, with targeted options to reach specific demographics.
• Analytics and Measurement: Monitoring metrics such as engagement rates and
conversion rates using built-in tools and third-party analytics to refine strategies.

Objectives include increasing brand awareness, boosting customer engagement, generating leads,
driving website traffic, conducting market research, and managing brand reputation. Effective
social media marketing creates meaningful interactions and drives business outcomes.

5. “Mobile marketing is beneficial for a business” – justify.

Mobile marketing harnesses channels like SMS, apps, social media, and mobile websites to
engage users on smartphones and tablets, providing several benefits for businesses:
1. Wider Reach and Accessibility: Mobile devices are ever-present, allowing
businesses to reach a broad audience. Messages are more likely to be seen because
these devices are always within reach. For instance, push notifications can directly
alert users about promotions regardless of their location.
2. Personalization and Targeting: Mobile marketing enables precise targeting
using data on location, behaviour, and preferences, enhancing campaign relevance.
 For example, a restaurant can send location-based offers to nearby potential
customers to encourage immediate visits.
3. Cost-Effectiveness: Mobile marketing often offers lower costs and higher returns
compared to traditional methods. Small businesses can leverage SMS campaigns
or mobile ads at a fraction of the cost of print or TV advertising.
4. Enhanced Engagement: Interactive content like in-app ads and loyalty rewards
increases customer engagement and brand loyalty. For example, a mobile app with
rewards can drive repeat purchases.
5. Instant Communication: Real-time updates and alerts can prompt immediate
consumer action. For instance, push notifications about flash sales can lead to
quick purchases.
6. Data Collection and Analytics: Mobile marketing provides valuable insights into
user behaviour, helping businesses refine strategies and enhance customer
experiences. Analysing app usage patterns, for example, can identify popular
features and areas for improvement.
Overall, mobile marketing offers extensive reach, personalized targeting, cost-efficiency,
enhanced engagement, real-time communication, and actionable data, making it a powerful tool
for business growth.

Part C
Unit 1
1. Discuss the company orientation toward marketplace?

Discussing a company's orientation toward the marketplace involves exploring how the
organization views and interacts with its market environment. This orientation influences its
approach to understanding customer needs, developing products, setting prices, choosing
distribution channels, and promoting its offerings. There are typically five main orientations or
philosophies that a company may adopt:
• Production Orientation: A company with a production orientation focuses primarily on
efficiency in production and distribution. The belief is that customers will favor products
that are readily available and affordable. Key characteristics include:
o Emphasis on production capabilities and cost minimization.
o Limited market research and customer feedback.
o Mass production to achieve economies of scale.
o Examples include early Ford Motor Company's Model T production line.
• Product Orientation: A product-oriented company prioritizes product innovation,
quality, and performance. The focus is on creating superior products and then assuming
that customers will seek them out due to their inherent qualities. Key characteristics
include:
o Continuous product improvement and innovation.
o Technical expertise and R&D investment.
o Product superiority over competitors.
o Companies like Apple are known for their strong product orientation
and focus on innovation.
• Sales Orientation: A sales-oriented company places a heavy emphasis on aggressive
sales techniques and promotional efforts to generate high sales volumes. The focus is on
persuading customers to buy through advertising, personal selling, and sales promotions.
Key characteristics include:
o High-pressure sales tactics.
o Short-term sales goals.
o Emphasis on closing sales rather than building customer relationships.
 o Direct sales companies often adopt this approach.
• Marketing Orientation (Market Orientation): A marketing-oriented company
places the customer at the center of all its activities. The organization systematically
gathers market intelligence, integrates it across functions, and uses it to create
superior customer value. Key characteristics include:
o Extensive market research to understand customer needs and preferences.
o Customer-focused product development and innovation.
o Integrated marketing strategies aligned with customer demands.
o Companies like Amazon and Procter & Gamble exemplify strong market
orientation.
• Societal Marketing Orientation: This orientation extends beyond the marketing
orientation by considering not only customer needs and organizational profitability but
also the well-being of society as a whole. Key characteristics include:
o Ethical considerations in marketing decisions.
o Corporate social responsibility (CSR) initiatives.
o Environmental sustainability practices.
o Companies focusing on sustainability, such as Patagonia, exhibit societal
marketing orientation.
When discussing a company's orientation toward the marketplace, it's essential to analyze which
orientation best describes the company's approach and how this orientation shapes its strategies
across product development, pricing, distribution, promotion, and customer relationships.
Companies may also blend elements from multiple orientations depending on their industry,
competitive landscape, and strategic goals.

2. Discuss the strategic perspective of a company?

Definition of Strategy: Strategy is the long-term plan to gain competitive advantage and meet
stakeholder expectations. It involves deciding where to compete (market segments, regions) and
how to compete (differentiation, cost leadership, niche focus).

Elements of Strategic Perspective:

• Mission and Vision: The strategy begins with the company's mission (its purpose) and
vision (its aspirations). These statements set the foundation for strategic objectives and
guide actions.
• Environmental Analysis: Comprehensive analysis of external factors (market trends,
competition, regulations) and internal capabilities (resources, core competencies, culture)
identifies opportunities, threats, strengths, and weaknesses.
• Competitive Positioning: Defining how the company will position itself against
competitors involves identifying competitive advantages, such as superior quality or unique
capabilities, to create customer value.
• Strategic Goals and Objectives: Setting SMART (Specific, Measurable, Achievable,
Relevant, Time-bound) goals aligns with the mission and vision, reflecting strategic
priorities.
• Strategic Choices: Allocating resources effectively involves decisions on product
development, market expansion, pricing, distribution, and promotion to achieve strategic
objectives.
• Implementation and Execution: Effective execution requires aligning organizational
structures and processes with strategic goals, monitoring progress, and adapting to
environmental changes.
 • Risk Management: Identifying and managing risks, including potential challenges and
developing contingency plans, ensures the organization can achieve its objectives.

Examples and Case Studies: Real-world examples, such as Apple’s innovation-driven strategy or
Nike’s brand positioning, illustrate successful strategic management practices.

Evaluation and Adaptation: Continuous evaluation of strategy effectiveness, periodic reviews,

and stakeholder feedback help in adapting strategies to remain competitive and relevant.

In conclusion, the strategic perspective in marketing management involves formulating,

implementing, and evaluating strategies to achieve long-term goals and create stakeholder value. It
integrates environmental analysis, competitive positioning, goal setting, resource allocation, and
risk management to guide decision-making and ensure business success.

UNIT 2

1. Discuss the factors influencing consumer behavior.

Consumer behaviour is influenced by a range of factors that marketers need to understand to

effectively engage and persuade their target audience. These factors can be divided into internal
and external influences.

Internal Influences:

• Psychological Factors:
o Motivation: Drives consumer actions based on needs, whether physiological,
emotional, or cognitive.
o Perception: How consumers interpret information impacts their view of brands and
products.
o Learning: Past experiences and knowledge shape consumer behaviour through
direct experiences and interactions.
o Attitudes and Beliefs: Positive attitudes and strong beliefs towards products and
brands affect purchasing decisions.
• Personal Factors:
o Demographics: Age, gender, income, education, occupation, marital status, and
family size influence consumer preferences and behaviour.
o Lifestyle and Personality: Activities, interests, opinions, and personality traits affect
product choices and brand preferences. Marketers segment consumers based on
these psychographic factors.
• Social Factors:
o Reference Groups: Influence from family, friends, colleagues, or celebrities impacts
purchase decisions.
o Social Class: Socioeconomic status affects consumption patterns and brand
perceptions.
o Culture and Subculture: Cultural values and subcultures shape consumption habits
and preferences.

External Influences:
 • Environmental Factors:
o Economic Situation: Income levels, employment rates, inflation, and interest rates
affect spending power and consumer confidence.
o Technological Changes: Advances in technology, such as e-commerce and mobile
shopping, alter how consumers research and purchase products.
o Political and Legal Factors: Government regulations and laws impact consumer
choices and market dynamics, influencing safety, advertising, and sustainability.
• Marketing Mix:
o Product: Features, quality, design, and branding affect consumer perceptions.
o Price: Pricing strategies, discounts, and perceived value influence buying decisions.
o Place: Distribution channels and accessibility impact convenience and purchase
behaviour.
o Promotion: Advertising, sales promotions, public relations, and personal selling
shape awareness and attitudes.

Understanding these influences helps marketers tailor strategies to meet consumer needs and
preferences. By analysing both internal and external factors, businesses can effectively segment
markets, target specific groups, and develop compelling value propositions, ensuring
competitiveness and relevance in dynamic markets.

2. Explain the various steps adopted in the market research process

Market research is a structured process for collecting, analysing, and interpreting data about
markets, target audiences, and competitors to aid marketing decision-making. The process involves
several key steps:

1. Defining the Problem and Objectives:

o Problem Definition: Identify the specific issue or question the research addresses,
such as customer preferences or competitive threats.
o Objectives Setting: Establish clear objectives to determine what information is
needed and how it will support marketing strategies.
2. Developing the Research Plan:
o Research Design: Choose the approach, including qualitative methods (e.g., focus
groups) or quantitative methods (e.g., surveys).
o Sampling Plan: Define the target population and sampling techniques to ensure a
representative sample.
o Data Collection Methods: Select methods and tools for data collection, such as
online surveys, interviews, or observations.
o Data Analysis Plan: Outline how data will be analysed, using statistical or thematic
techniques.
3. Collecting Data:
o Primary Data: Collect original data specifically for the research project using
chosen methods.
o Secondary Data: Supplement with existing data from sources like industry reports
or company records for context.
4. Analysing Data:
o Data Cleaning: Ensure data accuracy by correcting errors and inconsistencies.
o Data Analysis: Use appropriate techniques to interpret data and draw conclusions,
including statistical and thematic analysis.
5. Interpreting and Reporting Findings:
 oInterpretation: Analyze results in relation to research objectives, identifying trends
and insights.
o Reporting: Prepare a report with an executive summary, methodology, key
findings, and recommendations.
6. Taking Action:
o Decision Making: Use findings to make informed marketing decisions, such as
product development or pricing adjustments.
o Implementation: Translate decisions into actionable strategies and tactics.
7. Monitoring and Evaluating:
o Monitoring: Track market conditions and consumer behaviour to stay responsive.
o Evaluation: Assess the effectiveness of strategies based on metrics and refine future
approaches.

By systematically following these steps, organizations can gain a comprehensive understanding of

market dynamics and consumer behaviour, leading to informed decisions and strategic advantages.

Unit 3
1. Discuss the different bases of market segmentation.
Market segmentation is the process of dividing a heterogeneous market into smaller, more
homogeneous groups or segments based on similar characteristics, needs, or behaviors. This
allows marketers to tailor their marketing strategies and offerings to better meet the needs and
preferences of specific customer segments. There are several bases or criteria commonly used for
market segmentation:
Demographic Segmentation

Demographic segmentation is one of the simple, common methods of market segmentation. It

involves breaking the market into customer demographics as age, income, gender, race, education,
or occupation. This market segmentation strategy assumes that individuals with similar
demographics will have similar needs.

Example: The market segmentation strategy for a new video game console may reveal that most
users are young males with disposable income.

Geographic Segmentation

Geographic segmentation is technically a subset of demographic segmentation. This approach

groups customers by physical location, assuming that people within a given geographical area may
have similar needs. This strategy is more useful for larger companies seeking to expand into
different branches, offices, or locations.

Example: A clothing retailer may display more raingear in their Pacific Northwest locations
compared to their Southwest locations.

Behavioural Segmentation

Behavioural segmentation relies heavily on market data, consumer actions, and decision-making
patterns of customers. This approach groups consumers based on how they have previously
interacted with markets and products. This approach assumes that consumers prior spending habits
are an indicator of what they may buy in the future, though spending habits may change over time
or in response to global events.

Example: Millennial consumers traditionally buy more craft beer, while older generations are
traditionally more likely to buy national brands.

Psychographic Segmentation

Often the most difficult market segmentation approach, psychographic segmentation strives to
classify consumers based on their lifestyle, personality, opinions, and interests. This may be more
difficult to achieve, as these traits (1) may change easily and (2) may not have readily available
objective data. However, this approach may yield strongest market segment results as it groups
individuals based on intrinsic motivators as opposed to external data points.

Example: A fitness apparel company may target individuals based on their interest in playing or
watching a variety of sports.

2. Discuss the steps in new product development.

Phases of Marketing Activities in New Product Development

New product development (NPD) is a structured process that involves bringing a new product or
service from concept to market launch

Idea Generation:
The first stage involves generating ideas for new products based on market trends,
customer needs, competitive analysis, brainstorming sessions, research and development
(R&D), and internal innovation initiatives.
Ideas can come from various sources such as employees, customers, competitors, R&D
departments, and external collaborations.
Idea Screening:
In this stage, the generated ideas are evaluated to identify the most promising concepts
that align with strategic goals and have the potential for success in the marketplace.
Ideas are screened based on factors such as market potential, feasibility, company
capabilities, consumer needs, and competitive advantage.
Concept Development and Testing:
The selected concepts are developed into detailed product concepts. This stage involves
refining product features, benefits, design, and positioning. Concepts may be tested with
target consumers through concept testing methods such as surveys, focus groups, or
prototype testing. Feedback is gathered to assess consumer interest, perceptions, and
preferences.
Business Analysis:
A detailed business analysis is conducted to assess the commercial viability and financial
feasibility of the new product concept.
Prototype Development:
A prototype or several prototypes are developed to validate the concept and test
functionality, design, and performance.
Feedback from prototype testing helps refine and improve the product before final
production.
Market Testing (Test Marketing):
In some cases, companies conduct market testing to further validate the product concept
 and marketing strategy in a real-world setting.
Commercialization:
The final stage involves launching the product into the market. This includes finalizing
production, distribution logistics, marketing campaigns, sales training, and setting up
customer support. The focus is on achieving a successful market entry.
Post-Launch Evaluation and Review:
After the product launch, ongoing evaluation is crucial to monitor sales performance,
customer feedback, competitive activities, and market trends.

By following these steps systematically, organizations can increase the likelihood of developing
successful new products that meet customer needs, capitalize on market opportunities, and
contribute to sustainable business growth
Unit 4

1. Discuss the different pricing strategies adopted by the organizations. Pricing strategies are
crucial for setting the price points at which products or services are offered, impacting profitability,
market share, and competitive dynamics. Here are key strategies:

1. Cost-Plus Pricing:
o Definition: Price is set by adding a predetermined profit margin to the production
cost.
o Application: Used in industries with stable costs.
o Pros: Simple and ensures cost coverage.
o Cons: Ignores market demand and competition.
o Example: A manufacturer prices a gadget at $60, adding a 20% profit margin to a
$50 production cost.
2. Competitive Pricing:
o Definition: Prices are set based on competitors’ prices.
o Application: Effective in competitive markets.
o Pros: Maintains market share and responds to competition.
o Cons: Can lead to price wars.
o Example: A retailer sets a product at $49.99 to match competitors.
3. Penetration Pricing:
o Definition: Low initial price to quickly gain market share.
o Application: New products in competitive markets.
o Pros: Rapid customer base growth.
o Cons: Low initial profits and difficulty in increasing prices later.
o Example: A new streaming service offers a lower subscription price to attract users.
4. Skimming Pricing:
o Definition: High initial price, reduced over time to capture broader market.
o Application: Innovative products with limited initial competition.
o Pros: Maximizes early profits.
o Cons: Risks attracting competitors and alienating price-sensitive buyers.
o Example: A new smartphone is launched at a high price, then reduced later.
5. Value-Based Pricing:
o Definition: Price is set based on perceived value rather than production cost.
o Application: Products with unique features or strong brands.
o Pros: Aligns with customer value perceptions.
o Cons: Requires thorough market research.
o Example: A luxury watch is priced based on brand prestige and craftsmanship.
6. Psychological Pricing:
 o Definition: Pricing designed to have a psychological impact, such as $9.99 instead
of $10.
o Application: Retail settings to influence buying decisions.
o Pros: Increases perceived value and stimulates demand.
o Cons: Can be seen as manipulative if overused.
o Example: Pricing items at $9.99 instead of $10.
7. Bundle Pricing:
o Definition: Multiple products sold together at a lower price than separately.
o Application: Clears inventory and boosts sales of complementary items.
o Pros: Increases perceived value and sales volume.
o Cons: May reduce profits and devalue individual products.
o Example: Software suites offered at a lower total price.
8. Dynamic Pricing:
o Definition: Prices adjusted in real-time based on demand and supply.
o Application: Travel, entertainment, e-commerce.
o Pros: Maximizes revenue with demand fluctuations.
o Cons: May lead to customer dissatisfaction.
o Example: Airlines adjust ticket prices based on demand and availability.
9. Premium Pricing:
o Definition: High price to create a perception of quality or exclusivity.
o Application: Luxury goods and high-end services.
o Pros: Enhances brand image.
o Cons: Limits market to high-income segments.
o Example: Designer handbags priced higher to maintain exclusivity.
10. Freemium Pricing:
o Definition: Basic product or service is free; premium features are charged.
o Application: Software and digital services.
o Pros: Attracts a large user base, opportunity for upselling.
o Cons: Challenging conversion from free to paid users.
o Example: Cloud storage services offer basic free plans with fees for additional
features.

In summary, selecting the right pricing strategy aligns with business goals, market conditions, and
consumer behavior to optimize profitability and market position.

2. Explain the different types of retailing exists in present days.

Retailing has evolved significantly, offering various formats to meet diverse consumer needs. Here
are key types of retailing:

1. Brick-and-Mortar Retailing:

• Department Stores: Large stores with a wide range of products (e.g., Macy's).
• Specialty Stores: Focus on specific categories (e.g., Foot Locker).
• Supermarkets: Large self-service stores for food and household items (e.g., Walmart).
• Convenience Stores: Small stores with everyday items, open long hours (e.g., 7-Eleven).
• Discount Stores: Lower prices with lower profit margins (e.g., Dollar Tree).
• Warehouse Clubs: Bulk sales at discounts, usually with memberships (e.g., Costco).
• Off-Price Retailers: Branded goods at reduced prices (e.g., TJ Maxx).
 • Advantages: Direct product interaction, instant gratification, personal service.
• Challenges: Higher operational costs, limited reach.

2. E-commerce (Online Retailing):

• Examples: Amazon, eBay, Alibaba.

• Advantages: Global reach, convenience, lower costs, 24/7 availability.
• Challenges: Shipping logistics, return management, online security.

3. Mobile Commerce (M-commerce):

• Examples: Mobile apps like Amazon, shopping on social media.

• Advantages: Convenience, accessibility, personalization.
• Challenges: Payment security, app maintenance.

4. Direct Selling:

• Types:
o Door-to-Door Sales: Visiting homes (e.g., Avon).
o Home Parties: Social selling events (e.g., Tupperware).
o Network Marketing: Multi-level marketing (e.g., Amway).
• Advantages: Personal interaction, flexible hours.
• Challenges: Limited reach, high-pressure tactics.

5. Telemarketing:

• Examples: Subscription services, insurance.

• Advantages: Direct communication, personalized service.
• Challenges: Regulations, consumer reluctance.

6. Catalog Retailing:

• Examples: IKEA, LL Bean.

• Advantages: Detailed information, convenience.
• Challenges: High costs, declining popularity.

7. Automatic Vending:

• Examples: Snack machines, Redbox.

• Advantages: 24/7 availability, low labour costs.
• Challenges: Limited range, maintenance needs.

8. Television Home Shopping:

• Examples: QVC, HSN.

• Advantages: Wide reach, live demos.
• Challenges: High costs, limited interactivity.

9. Multichannel and Omnichannel Retailing:

• Examples: Nike, Apple.

 • Advantages: Enhanced convenience, multiple touchpoints.
• Challenges: Complex logistics, brand consistency.

10. Pop-Up Shops:

• Examples: Seasonal stores, brand events.

• Advantages: Low overhead, exclusivity.
• Challenges: Temporary, logistical issues.

11. Subscription Services:

• Examples: Dollar Shave Club, Birchbox.

• Advantages: Recurring revenue, predictable demand.
• Challenges: Customer retention, logistics.

In conclusion, modern retail offers various formats catering to different consumer preferences.
Successful retailers often use a mix of these formats to enhance reach, convenience, and overall
shopping experience.

Unit 5
1. Explain the elements of marketing communication mix.

The marketing communication mix, or promotional mix, includes various tools used by businesses
to effectively convey messages about their products, services, brands, and organizations. Each
element plays a unique role in reaching and engaging with target audiences.

• Advertising involves paid, non-personal communication through various media such as

television, radio, print, digital platforms, and outdoor spaces. Its main goals are to inform,
persuade, and remind customers. While advertising can reach a broad audience and build
brand awareness, it often comes with high costs and challenges in measuring return on
investment.
• Sales Promotion provides short-term incentives like coupons, discounts, contests, and free
samples to stimulate immediate sales and create urgency. This approach can attract price-
sensitive customers and boost sales quickly, but overuse can erode brand equity and has a
limited long-term impact.
• Public Relations (PR) focuses on building and maintaining a positive company image
through unpaid media such as press releases, sponsorships, and community involvement.
PR enhances credibility and supports branding efforts but offers limited control over the
message and requires time to build effective relationships.
• Personal Selling involves direct interaction between salespeople and customers to build
relationships and provide detailed product information. Methods include face-to-face
meetings, telemarketing, and video conferencing. While personal selling allows for
customized messaging and immediate feedback, it is costly and time-intensive.
• Direct Marketing communicates directly with targeted individuals through channels like
email, direct mail, and telemarketing. It aims to generate immediate responses and cultivate
lasting relationships. Although it allows for targeted and measurable results, it can be
intrusive and perceived as spam if not well-targeted.
 • Digital Marketing encompasses online activities such as social media marketing, SEO, and
content marketing. This approach provides wide reach, cost-effectiveness, and real-time
engagement but requires expertise to manage its rapidly evolving landscape.

In summary, the marketing communication mix includes a range of tools that, when integrated
effectively, help businesses engage with their target audience, build brand awareness, and drive
sales.

2. Discuss the steps in developing and managing an advertising program.

Developing and managing an advertising program involves a structured approach to ensure

alignment with marketing objectives. Here are the essential steps:
• Set Advertising Objectives: Clearly define what the campaign aims to achieve with
SMART (specific, measurable, achievable, relevant, time-bound) objectives. For example,
increase brand awareness by 20% within six months.
• Understand the Target Audience: Conduct market research to identify and understand the
target audience’s demographics, behaviors, and preferences through surveys, focus groups,
and data analysis. Develop buyer personas to represent different segments.
• Define Key Message and Unique Selling Proposition (USP): Determine the core message
and highlight the unique benefits that differentiate the product or service. For example, a
high-end spa might use "Experience luxury like never before" to emphasize exclusivity.
• Choose the Advertising Media: Select appropriate media channels to effectively reach the
target audience, considering options like television, radio, print, digital, outdoor, and direct
mail. For instance, digital channels like Facebook and Instagram may be chosen for
targeting tech-savvy millennials.
• Set the Budget: Allocate financial resources based on the advertising objectives and
required reach and frequency. Methods include percentage of sales, competitive parity, and
objective and task approaches. For example, allocate $50,000 for a campaign focusing on
regional TV and digital ads.
• Create the Advertising Message and Creative Execution: Develop content and creative
elements such as copywriting, visuals, and multimedia. Ensure alignment with the brand
image and target audience. Design engaging visuals and compelling copy to resonate with
the audience.
• Execute the Campaign: Implement the campaign according to the schedule and media
strategy, coordinating with agencies and media partners. Monitor performance and adjust as
needed to optimize results.
• Evaluate and Measure Results: Assess the campaign’s effectiveness using key
performance indicators (KPIs) like reach, impressions, click-through rates (CTR),
conversion rates, and return on investment (ROI). Analyze sales data, website traffic, and
customer feedback.
• Adjust and Optimize: Based on evaluation, adjust media allocation, messaging, and
creative elements to improve future campaigns. For instance, increase ad spend on high-
engagement platforms and refine messaging based on feedback.
• Maintain Consistency and Long-Term Planning: Ensure consistent brand messaging and
integrate advertising with other marketing activities through IMC plans. Plan quarterly or
annual calendars to sustain visibility and relevance.
In summary, a successful advertising program requires strategic planning, effective execution,
and continuous evaluation to achieve marketing goals and drive business growth.