UNIT-4

1.Meaning and Importance of marketing management.

Ans-Marketing management involves the planning, implementation, and control of marketing

programs, as well as the analysis of market opportunities and monitoring of marketing performance.
It's a comprehensive process that aims to create, communicate, deliver, and exchange offerings that
have value for customers, clients, partners, and society at large. Marketing management is about
understanding customer needs and preferences, developing products or services that meet those needs,
and effectively promoting and distributing them in the market.

Importance of Marketing Management:

1. Customer Satisfaction: Marketing management is essential for identifying and understanding

customer needs and preferences. By doing so, organizations can tailor their products and services to
meet these demands, leading to increased customer satisfaction.

2. Market Expansion: Through effective marketing strategies, businesses can identify new market
segments and expand their reach. This includes entering new geographical areas, targeting different
demographics, or introducing variations of existing products.

3. Profitability: Marketing management contributes directly to the financial success of a business. By

creating and implementing effective pricing strategies, promoting products/services efficiently, and
managing resources wisely, organizations can enhance their profitability.

4. Competitive Advantage: In a competitive business environment, effective marketing management

can provide a competitive edge. This involves differentiating products or services, building strong
brands, and creating unique selling propositions that distinguish a business from its competitors.

5. Innovation: Marketing management plays a crucial role in the innovation process. By staying
attuned to market trends and consumer preferences, businesses can identify opportunities for new
products or services and adapt existing offerings to better meet customer needs.

6. Resource Allocation: Marketing management helps allocate resources efficiently by focusing on the
most promising opportunities and avoiding ineffective or costly strategies. This ensures that budgets
are utilized effectively to achieve marketing objectives.

7. Communication: Effective communication with customers, stakeholders, and the public is a core
aspect of marketing management. Clear and persuasive communication builds brand awareness,
fosters positive relationships, and establishes trust with the target audience.

8. Adaptation to Market Changes: Markets are dynamic and subject to constant changes. Marketing
management helps organizations adapt to shifts in consumer behaviour, technological advancements,
and other environmental factors, ensuring continued relevance and success.

9. Strategic Decision-Making: Marketing management involves strategic planning and decision-

making. By analyzing market data, setting objectives, and formulating strategies, businesses can make
informed decisions that align with their overall goals and objectives.
10. Organizational Growth: A well-executed marketing strategy contributes to the growth of an
organization. By attracting new customers, retaining existing ones, and expanding market share,
businesses can achieve sustainable growth and long-term success.

In summary, marketing management is crucial for the survival and prosperity of businesses. It enables
organizations to understand, attract, and retain customers, adapt to changing market conditions, and
achieve a competitive advantage in the marketplace.

2.What is marketing mix.

Ans-The marketing mix, often referred to as the 4Ps, is a framework that businesses use to plan and
execute marketing strategies. It consists of four key elements that a company can control to influence
consumer behaviour and achieve its marketing objectives. The marketing mix was first introduced by
E. Jerome McCarthy, and it has become a fundamental concept in marketing. The 4Ps are Product,
Price, Place, and Promotion.

1. Product:

This refers to the tangible goods or intangible services that a company offers to meet the needs of its
target market. It includes considerations such as product features, design, quality, branding, and
packaging. Understanding the product and its unique selling points is crucial for effective marketing.

2. Price:

Price refers to the amount of money customers are willing to pay for a product or service. Setting the
right price is essential for achieving profitability while remaining competitive in the market. Pricing
strategies can include penetration pricing, skimming pricing, discount pricing, and other approaches
based on market conditions and business goals.

3. Place (Distribution):

Place refers to the distribution channels and methods through which a company delivers its products
or services to customers. It involves decisions about where and how to make products available to the
target audience. Distribution channels may include wholesalers, retailers, online platforms, or direct
sales, depending on the nature of the business and its target market.

4. Promotion:

Promotion encompasses all the activities a company undertakes to communicate the value of its
products or services to the target market and persuade customers to make a purchase. This includes
advertising, public relations, personal selling, sales promotions, and other promotional tactics.
Promotion aims to create awareness, generate interest, and ultimately drive sales.

Over time, the marketing mix has been expanded to include additional Ps, reflecting the evolving
nature of marketing in a dynamic business environment. These additional Ps may include People,
Process, and Physical Evidence, especially in the context of services marketing.
5. People:

Refers to the personnel, customer service, and other human elements that contribute to the customer
experience. The interactions between employees and customers can significantly impact a company's
image and brand perception.

6. Process:

Encompasses the systems, procedures, and processes that facilitate the delivery of products or
services. An efficient and well-designed process can enhance customer satisfaction and contribute to
the overall success of a marketing strategy.

7. Physical Evidence:

Relates to the tangible cues or physical aspects that contribute to the customer's perception of a
product or service. This can include the physical environment, packaging, and other sensory elements.

The marketing mix is a flexible framework that businesses can adapt to suit their specific industry,
market conditions, and strategic objectives. It provides a structured approach to developing and
implementing marketing strategies that align with the needs and preferences of the target market.

3.What is Product management and Product line.

Ans-Product management is a strategic function within a company that involves planning, developing,
marketing, and managing a product or a line of products throughout their lifecycle. Product managers
are responsible for making strategic decisions about the product, ensuring its success in the market,
and aligning it with the overall goals and objectives of the organization. The role typically involves
collaboration with various teams, including marketing, engineering, design, and sales, to bring a
product from conception to market launch and beyond.

Key responsibilities of product managers include:

1. Market Research: Understanding market needs, customer preferences, and competitive landscapes
through thorough research and analysis.

2. Product Planning: Developing a product strategy, including defining features, target audience, and
positioning in the market.

3. Product Development: Collaborating with cross-functional teams to bring the product from concept
to reality, overseeing the development process, and ensuring the product meets quality standards.

4. Product Launch: Planning and executing the launch of the product, including marketing and
communication strategies to create awareness and drive adoption.

5. Product Lifecycle Management: Monitoring and managing the product throughout its lifecycle,
making decisions about updates, improvements, or end-of-life strategies.

6. Cross-Functional Collaboration: Working closely with teams such as marketing, sales, engineering,
and customer support to ensure alignment and success across the organization.

7. Customer Feedback: Collecting and analyzing customer feedback to continuously improve the
product and address customer needs.
Product Line:

A product line refers to a group or collection of related products offered by a company under a single
brand or category. These products often share common characteristics, target similar customer needs,
and are marketed together. A product line allows a company to diversify its offerings within a specific
market and cater to different segments or preferences.

For example, a company that produces smartphones might have a product line that includes various
models with different features, specifications, and price points. Each model within the product line
serves a specific segment of the market, such as budget-conscious consumers, tech enthusiasts, or
business professionals.

Key points about product lines include:

1. Common Branding: Products within a product line typically share a common brand or brand
family, helping to create a cohesive identity in the market.

2. Diversity of Offerings: A product line allows a company to offer a range of products that appeal to
different customer preferences or needs, thereby expanding its market reach.

3. Cross-Selling Opportunities: Companies can leverage a product line to encourage cross-selling,

where customers who purchase one product may be interested in other products within the same line.

4. Efficient Marketing: Marketing efforts can be more efficient when promoting a product line, as
there is a shared brand identity and marketing strategy that spans multiple products.

In summary, product management involves overseeing the entire lifecycle of a product, from
conception to market launch and on-going management. A product line, on the other hand, is a group
of related products that are marketed and sold together to address different market segments or
preferences.

4.What is Product Mix and explain the stages of Product life cycle.

Ans-A product mix, also known as a product assortment, refers to the total set of products that a
company offers to its customers. It encompasses all the different product lines and individual products
a company has in its portfolio. The product mix is a strategic consideration for businesses as it
influences the overall market positioning, target audience, and revenue generation. A well-balanced
product mix allows a company to cater to diverse customer needs and preferences.

Key aspects of a product mix include:

1. Product Lines: These are groups of related products that share common characteristics, target
similar customer needs, and are often marketed together. Each product line within the mix contributes
to the overall diversity and appeal of the company's offerings.

2. Product Width: Refers to the number of different product lines a company offers. A wide product
width means offering a variety of product lines, while a narrow width indicates a more focused range
of offerings.
3. Product Length: Represents the total number of products within all product lines. A longer product
length indicates a more extensive product mix.

4. Product Depth: Refers to the number of variants or different versions of a particular product within
a product line. Deeper product depth implies more options and choices for customers within a specific
product category.

Balancing the product mix involves considering factors such as market demand, competition, and the
company's overall strategic objectives.

Stages of Product Life Cycle:

The product life cycle represents the stages a product goes through from its introduction to the market
until its decline and eventual withdrawal. Understanding these stages is crucial for effective product
management and marketing. The typical stages are:

1. Introduction:

This is the stage when a new product is launched into the market. Sales are initially slow as customers
become aware of the product. Marketing efforts focus on building awareness, and pricing strategies
may involve setting higher prices to recoup development costs.

2. Growth:

In this stage, the product gains acceptance, and sales start to grow rapidly. Market competition may
increase, and companies often invest in marketing to solidify their position. Prices may stabilize or
experience slight decreases to attract a broader customer base.

3. Maturity:

The product reaches maturity when its sales growth slows down, and it becomes widely accepted in
the market. Competition is usually intense, and companies may focus on product differentiation, cost
reduction, and market share retention. Prices may stabilize or experience further decreases.

4. Decline:

In the decline stage, sales start to decline due to changing customer preferences, technological
advancements, or the introduction of new products. Companies may decide to discontinue the
product, reduce marketing support, or explore other strategies to extend its life.

Understanding the product life cycle is vital for making informed decisions about marketing
strategies, resource allocation, and the overall management of a product portfolio. Different strategies
are appropriate for each stage, and companies may need to adapt their approaches as a product
progresses through its life cycle.

5.What is Market Research. Explain the Importance of Market Survey.

Ans-Market research is the process of gathering, analyzing, and interpreting information about a
market, including details about potential customers, competitors, and the overall industry. The goal of
market research is to provide businesses with insights that can guide strategic decision-making,
product development, marketing efforts, and overall business success. Market research involves both
qualitative and quantitative methods and can be conducted at various stages of a product or service
lifecycle.

Key components of market research include:

1. Understanding Customer Needs: Identifying the needs, preferences, and behaviours of potential
customers to develop products or services that meet their expectations.

2. Competitor Analysis: Assessing the strengths and weaknesses of competitors to identify

opportunities and threats in the market.

3. Market Size and Growth: Estimating the size of the target market and understanding its potential
for growth.

4. Industry Trends: Analyzing trends, technological advancements, and other factors that may impact
the market.

5. Price Sensitivity: Evaluating how sensitive customers are to changes in price and determining
optimal pricing strategies.

6. Distribution Channels: Understanding how products or services are currently distributed and
identifying potential opportunities for improvement or expansion.

7. Brand Perception: Assessing how the brand is perceived in the market and identifying areas for
improvement.

8. Consumer Behaviour: Studying how consumers make purchasing decisions and understanding
factors influencing their choices.

Importance of Market Survey:

A market survey is a specific type of market research that involves collecting data directly from
individuals or organizations within the target market. Market surveys are conducted through various
methods, including interviews, questionnaires, focus groups, and online surveys. The importance of
market surveys includes:

1. Customer Feedback: Market surveys provide direct insights from potential or existing customers.
Understanding customer opinions and preferences is invaluable for product development and
improvement.

2. Product Development: By gauging customer needs and preferences, market surveys help in shaping
and refining products or services to better align with market demands.

3. Competitor Benchmarking: Surveys can include questions about competitors, helping businesses
understand how their offerings compare and identifying areas for differentiation.

4. Market Positioning: Surveys can provide insights into how a company's brand and products are
perceived in the market, allowing for adjustments in positioning and marketing strategies.

5. Decision-Making Support: Survey data aids in informed decision-making across various business
functions, including marketing, sales, and product development.
6. Identifying Trends: By collecting data from a diverse group of respondents, market surveys can
help identify emerging trends and shifts in consumer behaviour.

7. Risk Mitigation: Understanding market dynamics through surveys allows businesses to identify
potential risks and challenges, enabling proactive measures to mitigate those risks.

8. Marketing Effectiveness: Surveys can assess the effectiveness of marketing campaigns, helping
businesses refine their messaging and promotional strategies.

9. Pricing Strategy: Surveys can provide insights into how price-sensitive the target market is and help
in determining optimal pricing strategies.

In summary, market surveys play a crucial role in obtaining direct and specific information from the
target audience, providing businesses with actionable insights to make informed decisions and stay
competitive in the market.

6.What is Physical Distribution and Stock Management.

Ans-Physical distribution, also known as logistics or distribution management, involves the planning,
implementation, and control of the physical movement and storage of goods and services from the
point of origin (production) to the point of consumption (end users). The goal of physical distribution
is to ensure that products are available in the right quantity, at the right place, and at the right time,
while minimizing costs and maximizing efficiency. This process encompasses various activities such
as transportation, warehousing, inventory management, and order fulfillment.

Key components of physical distribution include:

1. Transportation: Selecting the appropriate modes of transportation (e.g., truck, rail, air, sea) to move
products from manufacturers to distributors, retailers, and ultimately to consumers.

2. Warehousing: Managing storage facilities to store and protect goods, ensuring they are readily
available for distribution. This includes inventory control, order picking, and packing.

3. Inventory Management: Optimizing the level of inventory to meet demand while minimizing
carrying costs. This involves balancing the costs associated with stockouts and excess inventory.

4. Order Processing: Efficiently processing orders from customers, which includes order entry,
picking, packing, and shipping.

5. Materials Handling: The physical movement of goods within a warehouse or distribution center,
involving equipment such as forklifts, conveyor belts, and automated systems.

6. Packaging: Designing and using appropriate packaging to protect products during transportation
and storage, and to facilitate handling.

7. Distribution Network Design: Strategically designing the network of facilities and transportation
routes to optimize efficiency and reduce costs.

Efficient physical distribution is critical for customer satisfaction, cost control, and overall supply
chain effectiveness. It plays a crucial role in ensuring that products reach customers in a timely and
cost-effective manner.
Stock Management:

Stock management, also known as inventory management, is the process of overseeing and
controlling the levels of stock within a business. The primary objectives are to ensure that the right
products are available when needed, avoid stock-outs, minimize excess inventory, and optimize the
use of resources. Effective stock management involves balancing the costs associated with carrying
inventory against the costs of stock-outs or overstock.

Key aspects of stock management include:

1. Ordering and Reordering: Determining when and how much to order to maintain optimal inventory
levels. This involves forecasting demand, considering lead times, and setting reorder points.

2. Stock Tracking: Monitoring the movement of stock in real-time, from receiving goods to order
fulfilment. This helps prevent discrepancies and ensures accurate stock levels.

3. ABC Analysis: Categorizing inventory into different categories based on value and prioritizing
management efforts accordingly. This is often done using the ABC analysis, where "A" items are of
high value and importance, "B" items are moderate, and "C" items are of lower value.

4. Safety Stock: Maintaining a buffer of extra inventory to account for uncertainties in demand or
supply chain disruptions.

5. Stock Turnover: Calculating how quickly inventory is sold and replaced. High stock turnover is
generally desirable as it indicates efficient use of inventory.

6. Supplier Relationships: Collaborating with suppliers to optimize the supply chain, negotiate
favourable terms, and improve order fulfilment efficiency.

7. Technology Integration: Using technology, such as inventory management software and barcode
systems, to streamline processes, enhance accuracy, and improve overall efficiency.

Efficient stock management is crucial for businesses to meet customer demand, minimize carrying
costs, and operate a lean and responsive supply chain. It involves finding the right balance between
having enough stock to meet demand without carrying excessive levels that tie up resources and incur
unnecessary costs.

7.What is Selection of a Product.

Ans-The "selection of product" refers to the process of choosing which products a business will offer
in its portfolio. This decision is a critical aspect of product management and strategic planning for any
company. The selection of products involves considering various factors to ensure that the chosen
offerings align with the company's overall goals and are attractive to its target market. Here are key
considerations in the selection of products:

1. Market Demand: Assessing the demand for specific products in the target market. Understanding
customer needs and preferences helps in selecting products that are likely to be well-received.
2. Market Trends: Analyzing current market trends and anticipating future shifts can guide product
selection. Staying abreast of industry developments helps a company offer products that are relevant
and in line with consumer expectations.

3. Competitive Landscape: Evaluating the products offered by competitors is essential. Identifying

gaps in the market or areas where a company can differentiate itself can influence product selection.

4. Company Strengths and Capabilities: Consideration of the company's strengths, resources, and
capabilities is crucial. Selecting products that align with the company's expertise and resources can
contribute to successful product development and marketing.

5. Profitability: Assessing the potential profitability of products is a fundamental consideration. This

involves analyzing production costs, pricing strategies, and potential profit margins.

6. Brand Alignment: Ensuring that the selected products align with the overall brand image and
positioning of the company. Consistency in branding helps build a cohesive and recognizable identity.

7. Lifecycle Considerations: Understanding where a product is in its lifecycle (introduction, growth,

maturity, decline) can influence the decision to introduce, maintain, or phase out a product.

8. Regulatory and Compliance Requirements: Complying with relevant regulations and industry
standards is crucial. Products must meet legal requirements and safety standards to ensure consumer
trust and avoid legal issues.

9. Customer Feedback and Research: Gathering customer feedback through surveys, focus groups,
and market research can provide valuable insights into customer preferences. This information helps
in refining existing products or developing new ones that meet customer expectations.

10. Technological Advances: Considering technological advancements and innovations can be

essential, especially in industries where rapid technological changes influence consumer preferences.

11. Sustainability and Social Responsibility: Increasingly, consumers are concerned about
sustainability and social responsibility. Choosing products that align with these values can be a
strategic decision.

12. Distribution and Logistics: Evaluating the logistics and distribution requirements of products is
important. Ensuring that a company can efficiently bring products to market influences the selection
process.

The selection of products is not a one-time decision but an ongoing process that may involve periodic
reviews and adjustments based on changes in the market, technology, and consumer preferences.
Strategic product selection is crucial for the long-term success and sustainability of a business.

8.How do you Select a market for International Business.

Ans-Expanding into international markets is a strategic move that requires a thoughtful and systematic
approach. The selection of the right market is a pivotal decision that can significantly impact the
success of international business endeavours. Here are key points to consider in the process:-
1. Market Research:

Conduct thorough market research to understand the demand for your product or service in potential
target markets.

Analyse market trends, customer behaviours, and cultural nuances to tailor offerings accordingly.

2. Cultural and Social Factors:

Consider cultural differences, social norms, and values in potential markets to ensure products and
marketing strategies resonate with local audiences.

Cultural sensitivity is crucial for building relationships and establishing a positive brand image.

3. Economic Factors:

Assess the economic conditions of potential markets, including GDP, income levels, inflation rates,
and economic stability.

Evaluate the purchasing power of the target audience to set appropriate pricing strategies.

4. Political and Legal Environment:

Examine the political stability and legal environment of potential markets to identify potential risks
and challenges.

Understand government regulations, trade policies, and legal constraints that may impact business
operations.

5. Infrastructure and Logistics:

Evaluate the infrastructure and logistics capabilities of the target market, including transportation
networks and distribution channels.

Efficient logistics are essential for ensuring the smooth movement of goods from production to
consumers.

6. Competitive Landscape:

Analyze the competitive landscape in each potential market to understand existing competitors,
market saturation, and barriers to entry.

Identify a unique selling proposition or niche to differentiate from competitors.

7. Market Size and Growth Potential:

Consider the size of the market and its growth potential. Larger markets may offer more opportunities,
but smaller markets may have less competition.

Evaluate the market's potential for sustainable growth over the long term.
8. Risk Assessment:

Evaluate potential risks associated with each market, including political, economic, and cultural risks.

Consider factors such as currency exchange rates, geopolitical stability, and any external risks that
may impact business operations.

9. Trade Agreements:

Explore existing trade agreements or partnerships between your home country and potential target
markets.

Favourable trade agreements can provide a competitive advantage and facilitate smoother market
entry.

10. Regulatory Compliance:

Understand the regulatory environment and compliance requirements in each market.

Ensure that products or services meet local standards and regulations to avoid legal complications.

11. Consumer Behaviour:

Study the behaviour and preferences of the target audience, including purchasing patterns, brand
loyalty, and response to marketing strategies.

Tailor marketing efforts to align with local consumer behaviour.

12. Accessibility to Resources:

Evaluate the availability and cost of resources such as labour, raw materials, and technology in each
market.

Ensure a stable supply chain and assess the impact on production costs.

13. Local Partnerships:

Assess the potential for forming partnerships with local businesses or distributors.

Local partnerships can provide valuable insights, navigate cultural nuances, and enhance market
penetration.

14. Exit Strategy:

Have a clear exit strategy in case the market entry does not yield expected results.

Consider factors such as repatriation of funds and minimizing financial risks associated with market
withdrawal.

In conclusion, the selection of a market for international business is a comprehensive process that
involves weighing multiple factors. A holistic evaluation, incorporating these key points, ensures that
the chosen market aligns with the company's goals, mitigates risks, and sets the foundation for
successful international expansion. Thorough planning and strategic decision-making at this stage are
crucial for sustainable growth and global market presence.
9.What is export financing. Institutional support for export.

Ans-Export financing refers to the various financial instruments and mechanisms that facilitate
international trade by providing funding to exporters. It is designed to address the challenges and risks
associated with selling goods and services across borders. Export financing is crucial for businesses
engaged in international trade, as it helps them manage cash flow, mitigate risks, and fulfill orders.
Several types of export financing options are available, including:

1. Pre-shipment Financing:

This type of financing is provided to exporters before the shipment of goods. It helps cover costs
associated with the production and preparation of goods for export, such as raw materials, labour, and
packaging.

2. Post-shipment Financing:

- Post-shipment financing comes into play after the shipment of goods. It assists exporters in
managing the gap between shipping goods and receiving payment. This type of financing can take the
form of working capital loans, discounting of export bills, or invoice factoring.

3. Export Credit Insurance:

Export credit insurance protects exporters against the risk of non-payment by foreign buyers. It helps
mitigate the risk of political or commercial events that may lead to non-payment, providing exporters
with greater confidence to explore new markets.

4. Export Factoring:

Export factoring involves selling accounts receivable to a third party (factor) at a discount. This
provides immediate cash flow to the exporter, reducing the financial strain caused by waiting for
customers to pay invoices.

5. Export Financing Programs and Guarantees:

Many governments and financial institutions offer export financing programs and guarantees. These
programs may include loan guarantees, credit insurance, and other financial instruments to support
exporters and encourage international trade.

Institutional Support for Export:

In addition to financial services, various institutions provide support to exporters at both the national
and international levels. This institutional support is aimed at helping businesses navigate the
complexities of global trade and overcome barriers. Key forms of institutional support for exports
include:

1. Export Promotion Agencies (EPAs):

EPAs are government or quasi-governmental organizations dedicated to promoting and facilitating

exports. They offer a range of services, including market research, trade missions, promotional
activities, and information on trade regulations.
2. Trade Associations:

Industry-specific trade associations play a crucial role in supporting exporters by providing

networking opportunities, industry information, and advocacy on behalf of businesses engaged in
international trade.

3. Chambers of Commerce:

Chambers of Commerce, both at home and abroad, offer valuable resources and services to exporters.
They provide networking platforms, trade information, and assistance with market entry strategies.

4. Export Credit Agencies (ECAs):

ECAs, often government-backed, provide financial support to domestic companies engaged in

international trade. They may offer insurance, loan guarantees, and other financial instruments to
mitigate risks associated with exporting.

5. World Trade Organization (WTO):

The WTO plays a central role in facilitating international trade by establishing rules and agreements
among member countries. It provides a forum for negotiations and dispute resolution, creating a more
predictable and stable trading environment.

6. Development Banks:

Development banks, such as the World Bank and regional development banks, may provide financial
assistance and support for infrastructure projects that can enhance trade capabilities.

7. Customs Authorities:

Customs authorities play a critical role in facilitating trade by enforcing regulations and ensuring the
smooth flow of goods across borders. They provide guidance on customs procedures, tariffs, and
compliance requirements.

8. Export-Import Banks:

Many countries have Export-Import (Exim) Banks that provide financial assistance to support and
promote international trade. They may offer loans, guarantees, and credit insurance to facilitate
exports and imports.

9. International Trade Centres (ITCs):

ITCs, such as the International Trade Centre, provide a range of services to support small and
medium-sized enterprises (SMEs) in developing countries. These services include market intelligence,
capacity building, and trade facilitation.

In summary, the combination of export financing options and institutional support creates a conducive
environment for businesses to engage in international trade. This support helps exporters overcome
financial barriers, navigate complex trade regulations, and expand their global reach.