Marketing management

2023 paper solutions

Answer the following questions

1.
A. Define marketing management.
Ans :According to Philip Kotler, "Marketing Management is the analysis, planning,
implementation and control of programmes designed to bring about desired exchanges with
target audiences for the purpose of personal and of mutual gain. It relies heavily on the
adoption and coordination of product, price, promotion and place for achieving responses.”

B. Discuss the stages of consumer buying decision Process.

Ans:
Problem/need recognition

This is often identified as the first and most important step in the customer’s decision
process. A purchase cannot take place without the recognition of the need. The need may
have been triggered by internal stimuli (such as hunger or thirst) or external stimuli (such as
advertising or word of mouth).

Information search

Having recognised a problem or need, the next step a customer may take is the information
search stage, in order to find out what they feel is the best solution. This is the buyer’s effort
to search internal and external business environments, in order to identify and evaluate
information
sources related to the central buying decision. Your customer may rely on print, visual,
online media or word of mouth for obtaining information.

Evaluation of alternatives

As you might expect, individuals will evaluate different products or brands at this stage on
the basis of alternative product attributes – those which have the ability to deliver the
benefits the customer is seeking. A factor that heavily influences this stage is the customer’s
attitude. Involvement is another factor that influences the evaluation process. For example,
if the customer’s attitude is positive and involvement is high, then they will evaluate a
number of companies or brands; but if it is low, only one company or brand will be
evaluated.

Purchase decision

The penultimate stage is where the purchase takes place. Philip Kotler (2009) states that the
final purchase decision may be ‘disrupted’ by two factors: negative feedback from other
customers and the level of motivation to accept the feedback

Purchase
A need has been created, research has been completed and the customer has decided to
make a purchase. All the stages that lead to a conversion have been finished. However, this
doesn’t mean it’s a sure thing. A consumer could still be lost. Marketing is just as important
during this stage as during the previous.

Post-purchase behaviour

In brief, customers will compare products with their previous expectations and will be either
satisfied or dissatisfied. Therefore, these stages are critical in retaining customers. This can
greatly affect the decision process for similar purchases from the same company in the
future, having a knock-on effect at the information search stage and evaluation of
alternatives stage. If your customer is satisfied, this will result in brand loyalty, and the
Information search and Evaluation of alternative stages will often be fast-tracked or skipped
altogether.

C. Explain the micro and macro environment factors and it's impact on business.
Ans:1. Micro-environment:
The micro-environment of the company consists of various forces in its immediate
environment that affects its ability to operate effectively in its chosen markets.
This includes the following:

(a) The company

(b) Company’s Suppliers
(c) Marketing Intermediaries
(d) Customers
(e) Competitors
(f) Public

The Company: In designing marketing plans, marketing management takes other company
groups into account – Finance, Research and Development, Purchasing, Manufacturing,
Accounting, Top Management etc. Marketing manager must also work closely with other
company departments. Finance in concerned with funds and using funds to carry out the
marketing plans.

Company’s Suppliers: Suppliers provide the resources needed by the company to product
its goods and services. They are important links in the company’s overall customer “value
delivery system”. Supplier developments can seriously affect marketing.

Marketing Intermediaries: Intermediaries or distribution channel members often provide a

valuable link between an organization and its customers. Large-scale manufacturing firms
usually find it difficult to deal with each one of their final customers individually in the target
markets. So they chose intermediaries to sell their products.

Physical distribution: Firms help the company to stock and move goods from their points of
origin to their destinations. Working with warehouse and transportation firms, a company
must determine the best ways to store and ship goods, and safety marketing services
 Customers: Consumer markets consist of individuals and households that they buy goods
and services for personal consumption. Business markets buy goods and services for further
processing or for use in their production process, whereas reseller markets buy goods and
services to resell at a profit.

Competitors: No single competitive marketing strategy is best for all companies. The
company’s marketing system is surrounded and affected by a host of competitors. Each firm
should consider its own size and industry position compared to those of its competitors.
These competitors have to be identified, monitored and out maneuvered to gain and
maintain customer loyalty.

Public: General public do take interest in the business undertaking. The company has a
duty to satisfy the people at large along with competitors and the consumers. A public is
defined as “any group that has an actual or potential interest in or impact on a company’s
ability to achieve its objectives.

Public relations is certainly a broad marketing operation which must be fully taken care
of Goodwill, favorable reactions, donations and hidden potential fixture buyers are a few of
the responses which a company expects from the public

Macro Environment:

The macro-environment consists of broader forces that not only affect the company and the
industry, but also other factors in the micro-environment.
The components of a macro-environment are:

(a) Demographic Environment

(b) Economic Environment
(c) Physical Environment
(d) Technological Environment
(e) Political Environment
(f) Legal Environment
(g) Social and Cultural Environment

A. Demographic Environment: Demography is the study of population characteristics

that are used to describe consumers. Demographics tell marketers who are the current and
potential customers, where are they, how many are likely to buy and what the market is
selling. Demography is the study of human populations in terms of size, density, location,
age, sex, race, occupation and other statistics.

B. Economic Environment:

Economic environment is the most significant component of the marketing environment. It

affects the success of a business organization as well as its survival. The economic policy of
the Government, needless to say, has a very great impact on business. Some categories of
business are favorably affected by the Government policy, some adversely affected while
some others remain unaffected.
 C. Physical Environment:

The physical environment or natural environment involves the natural resources that are
needed as inputs by marketers or those that are affected by marketing activities.
Environmental concerns have grown steadily in recent years. Marketers should be aware of
trends like shortages of raw materials, increased pollution, and increased governmental
intervention in natural resources.

D. Technological Environment:

The technological environment is the most dramatic force now facing our destiny.
Technological discoveries and developments create opportunities and threats in the market.
The marketer should watch the trends in technology. The biggest impact that the society has
been undergoing in the last few years is the technological advancement, product changes
and its effects on consumers.

E. Political Environment:

The political environment consists of factors related to the management of public affairs and
their impact on the business of an organization. Political environment has a close
relationship with the economic system and the economic policy. Some Governments specify
certain standards for the products including packaging.

F. Legal Environment:

Marketing decisions are strongly affected by laws pertaining to competition, price-setting,

distribution arrangement, advertising etc. It is necessary for a marketer to understand the
legal environment of the country and the jurisdiction of its courts.

G. Social and Cultural Environment:

Socio-cultural forces refer to the attitudes, beliefs, norms, values, lifestyles of individuals in a
society. These forces can change the market dynamics and marketers can face both
opportunities and threats from them. Some of the important factors and influences operating
in the social environment are the buying and consumption habits of people, their languages,
beliefs and values, customs and traditions, tastes and preferences, education and all factors
that affect the business.

2.
A. Define services.what are the characteristics of service marketing?
Ans:Service marketing is the marketing and selling of intangible products (non-physical
products). Services comprise all of those personal facilities which we require from time to
time like; medical care, education, renting of living spaces and vehicles, hair cut, spas,
musical concerts, dance classes, etc.
The characteristics of service marketing are:
● Intangibility
● Inseparability
● Perishability
 ● Variability
● Change demand
● Services pricing.

B. Briefly explain the four concepts of marketing.

Ans: Marketing encompasses several core concepts:

1. **Understanding Customer Needs and Wants**: Marketing begins with identifying

and understanding the needs, wants, and preferences of consumers.

2. **Target Market**: Once needs are identified, marketers define specific groups of
consumers (target markets) to whom they will direct their marketing efforts.

3. **Value Proposition**: Marketers develop products or services that offer unique value to
their target market, solving their problems or fulfilling their desires better than alternatives.

4. **Marketing Mix (4Ps)**: This includes Product (what is being offered), Price (how much it
costs), Place (where it is sold or distributed), and Promotion (how it is communicated to the
target market).

C. Explain the factors influencing consumer behaviour.

Ans:Consumer behavior refers to the selection, acquisition and consumption of goods and
services to meet their needs. There are different processes involved in consumer behavior.
Initially, the consumer tries to find what products you would like to consume, and then select
only those products that promise greater utility. After selecting the products, the consumer
makes an estimate of available funds that can happen..

CULTURAL FACTORS
Consumer behavior is deeply influenced by cultural factors, such as buyer’s culture,
subculture and social class.
• Culture - Essentially, culture is the share of each company and is the major cause of the
person who wants and behavior. The influence of culture on the purchasing behavior varies
from country to country; therefore sellers have to be very careful in the analysis of the culture
of different groups, regions or even countries.

Cultural factors comprise of set of values and ideologies of a particular community or group
of individuals. It is the culture of an individual which decides the way he/she behaves. In
simpler words, culture is nothing but values of an individual. What an individual learns from
his parents and relatives as a child becomes his culture

• Subculture - Each culture has different subcultures, such as religions, nationalities,

geographical regions, racial, etc. marketing groups may use these groups, segmenting the
market in several small portions. For example, marketers can design products according to
the needs of a specific geographical group.

• Social Class - Every society has some kind of social class is important for marketing
because the buying behavior of people in a particular social class is similar. Thus marketing
activities could be adapted to different social classes. Here we should note that social class
is not only determined by income, but there are several other factors such as wealth,
education, occupation etc.

SOCIAL FACTORS

Social factors also influence the purchasing behaviour of consumers. Human beings are
social animals. We need people around to talk to and discuss various issues to reach to
better solutions and ideas. We all live in a society and it is really important for individuals to
adhere to the laws and regulations of society.
Social Factors influencing consumer buying decision can be classified as under:

• Reference Groups
• Immediate Family Members
• Relatives
• Role in the Society
• Status in the society
• Reference groups - Reference groups have the potential for the formation of an attitude or
behaviour of the individual. The impact of reference groups vary across products and
brands. For example, if the product is visible as clothing, shoes, car etc., the influence of
reference groups will be high. Reference groups also include opinion leader (a person who
influences others by his special skill, knowledge or other characteristics).

• Family - Buyer behaviour is strongly influenced by a family member. So vendors are trying
to find the roles and influence of the husband, wife and children. If the decision to purchase
a particular product is influenced by the wife of then sellers will try to target women in their
ad. Here we should note that the purchase of roles change with changing lifestyles of
consumers.

• Roles and Status - An individual from an upper middle class would spend on luxurious
items whereas an individual from middle to lower income group would buy items required for
his/her survival.
Each person has different roles and status in society in terms of groups, clubs, family, etc.
organization to which it belongs. For example, a woman working in an organization as
manager of finance. Now she is playing two roles, one of the chief financial officer and the
mother. Therefore, purchasing decisions will be influenced by their role and status.

Role in the Society - Each individual plays a dual role in the society depending on the group
he belongs to. An individual working as Chief Executive Officer with a reputed firm is also
someone’s husband and father at home. The buying tendency of individuals depends on the
role he plays in the society.

PERSONAL FACTORS

Personal factors may also affect consumer behavior. Some of the important factors that
influence personal buying behavior are: lifestyle, economic status, occupation, age,
personality and self- esteem.
• Age - Age and life cycle have a potential impact on the purchasing behavior of consumers.
It is obvious that consumers change the purchase of goods and services over time. Family
life cycle consists of different stages as young singles, married couples, and unmarried
couples etc. that help marketers to develop suitable products for each stage.
Age and human lifecycle also influence the buying behavior of consumers. Teenagers
would be more interested in buying bright and loud colors as compared to a middle aged or
elderly individual who would prefer decent and subtle designs.
A bachelor would prefer spending lavishly on items like beer, bikes, music, clothes, parties,
and clubs and so on. A young single would hardly be interested in buying a house, property,
insurance policies, gold etc. An individual who has a family, on the other hand would be
more interested in buying something which would benefit his family and make their future
secure.

• Occupation - The occupation of a person has a significant impact on their buying

behaviour. For example, a marketing manager of an organization is trying to buy business
suits, while a low level worker in the same organization buy-resistant clothing works.
The occupation of an individual plays a significant role in influencing his/her buying
decision. An individual’s nature of job has a direct influence on the products and brands he
picks for himself/herself.

• Economic situation - economic situation of the consumer has a great influence on their
buying behaviour. If income and savings a customer is high, then going to buy more
expensive products. Moreover, a person with low income and savings buy cheap products.

The buying tendency of an individual is directly proportional to his income/earnings per

month. How much an individual brings home decides how much he spends and on which
products?
Individuals with high income would buy expensive and premium products as compared to
individuals from middle and lower income group who would spend mostly on necessary
items. You would hardly find an individual from a low income group spending money on
designer clothes and watches. He would be more interested in buying grocery items or
products necessary for his survival.

• Lifestyle - Lifestyle clients is another factor affecting import purchasing behaviour of

consumers. Lifestyle refers to the way a person lives in a society and express things in their
environment. It is determined by the client’s interests, opinions, etc. and activities shape their
whole pattern of acting and interacting in the world.
Lifestyle, a term proposed by Austrian psychologist Alfred Adler in 1929, refers to the way an
individual stays in the society. It is really important for some people to wear branded clothes
whereas some individuals are really not brand conscious. An individual staying in a posh
locality needs to maintain his status and image. An individual’s lifestyle is something to do
with his style, attitude, perception, his social relations and immediate surroundings.

• Personality - Personality changes from person to person, time to time and place to place.
Therefore, it can greatly influence the buying behaviour of customers. In fact, personality is
not what one has, but is the totality of the conduct of a man in different circumstances. Has a
different characteristic, such as dominance, aggression, confidence etc. that may be useful
to determine the behaviour of consumers to the product or service.
An individual’s personality also affects his buying behaviour. Every individual has his/her
own characteristic personality traits which reflect in his/her buying behaviour. A fitness freak
would always look for fitness equipment’s whereas a music lover would happily spend on
musical instruments, CDs, concerts, musical.

PSYCHOLOGICAL FACTORS
There are four major psychological factors that affect the purchasing behaviour of
consumers. These are: perception, motivation, learning, beliefs and attitudes.
• Motivation - The level of motivation also affects the purchasing behaviour of customers.
Each person has different needs, such as physiological needs, biological needs, social
needs, etc. The nature of the requirements is that some are more urgent, while others are
less pressing. Therefore, a need becomes a motive when it is most urgent to lead the
individual to seek satisfaction.

• Perception - Select, organize and interpret information in a way to produce a meaningful

experience of the world is called perception. There are three different perceptual processes
which are selective attention, selective distortion and selective retention. In the case of
selective attention, sellers try to attract the attention of the customer. Whereas in case of
selective distortion, customers try to interpret the information in a way that supports what
customers already believe. Similarly, in the case of selective retention, marketers try to
retain information that supports their beliefs.

• Beliefs and Attitudes - Client has specific beliefs and attitudes towards different products.
Because such beliefs and attitudes shape the brand image and affect consumer buying
behaviour so traders are interested in them. Marketers can change beliefs and attitudes of
customers with special campaigns in this regard.

3.
A.Define market segmentation with example.
Ans: Market segmentation is the process of dividing a total market into market groups
consisting of people who have relatively similar product needs, there are clusters of needs.
Examples:Samsung offers wide range of handsets for both males as well as females.

B. Discuss in detail the types of buyer behaviour.

Ans:Buyer behavior, also known as consumer behavior, refers to the actions and
decision-making processes individuals go through when purchasing goods or services.
1. **Routine Response Behavior**: This type of behavior occurs when consumers make low-
involvement, habitual purchases without much thought or consideration..

2. **Limited Decision Making**: In this type of behavior, consumers put more thought into
their purchases but still don't extensively research or evaluate alternatives.
3. **Extensive Decision Making**: Consumers engage in extensive decision-making when
purchasing high-involvement, expensive, or infrequently bought products, such as cars,
houses, or college education.
4. **Impulsive Buying**: Impulse buying occurs when consumers make unplanned
purchases based on sudden urges or emotions, often by factors like product displays,
promotions, or peer influence.
5. **Emotional Buying**: Emotional buying is driven by consumers' feelings, desires, or
aspirations rather than rational decision-making.
6. **Rational Buying**: Rational buying involves logical decision-making based on
careful evaluation of product features, benefits, and value proposition.
7. **Social Influences**: Social influences play a significant role in buyer behavior, as
individuals are influenced by family, friends, peers, celebrities, and social media. Word-of-
mouth recommendations, social proof, and influencer endorsements can sway
purchasing decisions.
Understanding these types of buyer behavior enables marketers to develop targeted
strategies that resonate with different consumer segments, ultimately driving sales and
building brand loyalty.

C.Explain in detail the new product development process.

Ans:The product development process starts from idea generation and ends with product
development and commercialization. Following are the steps in the process of product
development.

Idea Generation - The first step of product development is Idea Generation that is
identification of new products required to be developed considering consumer needs and
demands. Idea generation is done through research of market sources like consumer liking,
disliking, and competitor policies. Various methods are available for idea generation like -
Brain Storming, Delphi Method, or Focus Group.
Idea Screening - The second step in the process of product development is Idea Screening
that is selecting the best idea among the ideas generated at the first step. As the resources
are limited, so all the ideas are not converted to products. Most promising idea is kept for
the next stage.

Concept Development - At this step the selected idea is moved into development process.
For the selected idea different product concepts are developed. Out of several product
concepts the most suitable concept is selected and introduced to a focus group of customers
to understand their reaction. For example - in auto expos different concept cars are
presented, these models are not the actual product, they are just to describe the concept say
electric, hybrid, sport, fuel efficient, environment friendly, etc.

Market Strategy Development - At this step the market strategies are developed to evaluate
market size, product demand, growth potential, and profit estimation for initial years. Further
it includes launch of product, selection of distribution channel, budgetary requirements, etc.
Business Analysis - At this step business analysis for the new product is done. Business
analysis includes - estimation of sales, frequency of purchases, nature of business,
production and distribution related costs and expenses, and estimation of profit.

Product Development - At this step the concept moves to production of finalised product.
Decisions are taken from operational point of view whether the product is technically and
commercially feasible to produce. Here the research and development department develop a
physical product.
Test Marketing - Now the product is ready to be launched in market with brand name,
packaging, and pricing. Initially the product is launched in a test market. Before full scale
launching the product is exposed to a carefully chosen sample of the population, called test
market. If the product is found acceptable in test market the product is ready to be launched
in target market.

Commercialisation - Here the product is launched across target market with a proper market
strategy and plan. This is called commercialisation phase of product development.

4.
A. Mention the criteria for choosing brand element.
Ans.The four Brand Pillars that capture key components of brand health are Differentiation,
Relevance, Esteem and Knowledge
DIFFERENTIATION
A brand's ability to capture attention in the cultural landscape.
A powerful driver of curiosity, advocacy and pricing power.
RELEVANCE
How appropriate and meaningful a brand is to consumers.
Drives brand consideration and trial.
ESTEEM
A measure of how highly regarded a brand is and how well it delivers on its promises.
Leads to trial and commitment.
KNOWLEDGE
The depth of understanding people have of a brand – both its positive and negative
information.

B. Assume that you are given two products

A. A high technology kitchen chimney high
B. A high fibre enriched box of cookies
Analyse whether skimming pricing/ penetration pricing should be adopted.justify.
Ans: To determine whether skimming pricing or penetration pricing should be adopted for
the two products – a high technology kitchen chimney and a high-fiber enriched box of
cookies – we need to consider various factors related to the products, market conditions,
target customers, and competitive landscape.

1. **High Technology Kitchen Chimney**:

- Skimming Pricing: If the kitchen chimney is equipped with advanced features, innovative
technology, and offers unique benefits that cater to a niche market segment seeking
premium quality and performance, skimming pricing could be appropriate. Skimming
pricing involves setting a high initial price to maximize profits from early adopters and
customers willing to pay a premium for the latest technology.
- Justification: Skimming pricing would be justified if the target market consists of affluent
consumers who value cutting-edge technology, convenience, and superior functionality in
kitchen appliances. Additionally, if there are limited competitors offering similar high-tech
chimneys, skimming pricing can help position the product as a luxury item, enhancing its
perceived value and exclusivity.
2. **High Fiber Enriched Box of Cookies**:
- Penetration Pricing: For the box of cookies enriched with high fiber content, penetration
pricing may be more suitable. Penetration pricing involves setting a low initial price to quickly
gain market share, attract price-sensitive consumers, and stimulate demand.
- Justification: Penetration pricing would be justified for the cookies if the market is highly
competitive with several established brands offering similar products. By pricing the cookies
competitively or even below competitors' prices initially, the brand can encourage trial and
adoption among health-conscious consumers who prioritize value for money. Penetration
pricing can also help the brand capture market share and establish a loyal customer base
before competitors react with price adjustments or promotional offers.

In summary, skimming pricing may be appropriate for the high technology kitchen chimney
targeting affluent consumers who value premium features and are willing to pay a premium
price. On the other hand, penetration pricing may be more effective for the high fiber
enriched box of cookies to gain traction in a competitive market, attract price-sensitive
consumers, and drive initial sales volume. Each pricing strategy should be carefully
evaluated based on product attributes, target market dynamics, competitive landscape, and
long-term business objectives.

C.Explain in detail the various pricing strategies with suitable examples.

Ans:

1. **Premium Pricing**:
- **Description**: Premium pricing involves setting a relatively high price to position
the product or service as a high-quality, exclusive offering.
- **Example**: Luxury brands like Rolex, Gucci, or Bentley utilize premium pricing to
convey prestige, quality, and exclusivity. These brands leverage their reputation and
craftsmanship to justify premium prices, appealing to affluent consumers who value status
and luxury.

2. **Economy Pricing**:
- **Description**: Economy pricing aims to attract price-sensitive consumers by offering
products or services at a low price point.
- **Example**: Discount retailers like Walmart and Aldi implement economy pricing
strategies by maintaining low operating costs and passing on savings to customers. These
stores offer a wide range of products at affordable prices, appealing to budget-conscious
shoppers seeking value and savings.

3. **Penetration Pricing**:
- **Description**: Penetration pricing involves setting a low initial price to quickly
gain market share and attract customers.
- **Example**: Technology companies often use penetration pricing for new product
launches to gain traction in competitive markets. For instance, when a new smartphone is
introduced, the manufacturer may initially offer it at a lower price to encourage early adoption
and capture market share before competitors react.

4. **Skimming Pricing**:
 - **Description**: Skimming pricing entails setting a high initial price and gradually
lowering it over time as demand subsides.
- **Example**: Electronics companies like Apple employ skimming pricing for their new
product releases. When a new iPhone is launched, it's priced at a premium to capitalize on
early adopters and enthusiasts willing to pay a premium for the latest technology. Over time,
as demand decreases and competition intensifies, Apple lowers the price to attract more
price-sensitive consumers.

5. **Value-Based Pricing**:
- **Description**: Value-based pricing is determined by the perceived value of the product
or service to the customer, rather than production costs.
- **Example**: Software companies often use value-based pricing for their products and
services. For instance, Adobe offers various subscription plans for its Creative Cloud suite,
with prices based on the perceived value of the software's features and benefits to different
customer segments, such as individual users, businesses, or students.

6. **Psychological Pricing**:
- **Description**: Psychological pricing leverages human psychology to
influence consumer perceptions and behavior.
- **Example**: Retailers frequently use psychological pricing techniques such as
setting prices just below round numbers (e.g., $9.99 instead of $10) to create the
perception of a better deal, or using odd pricing (e.g., $19.97) to make prices seem more
affordable and appealing to consumers.

7. **Bundle Pricing**:
- **Description**: Bundle pricing involves selling multiple products or services together for
a lower price than if each item were purchased separately.
- **Example**: Fast-food chains offer combo meals that include a burger, fries, and a drink
at a discounted price compared to buying each item individually. Similarly, software
companies may bundle multiple products or services together in a package deal, offering a
discount for purchasing the bundle.

These pricing strategies illustrate the diverse approaches businesses use to set prices and
achieve their marketing objectives, whether it's maximizing profits, gaining market share,
or building brand loyalty. Each strategy has its advantages and considerations, depending
on factors such as the product, target market, competition, and overall business goals.

5.
A. . Define distribution channel

A distribution channel is the network of individuals and organizations involved in getting a

product or service from the producer to the customer. Distribution channels are also known
as marketing channels or marketing distribution channels.

B. .Explain the factors affecting the channel choice

Factors Affecting Channel Choice
 Market Factors
 Nature of the market: Elastic and Inelastic.
In case of industrial goods, he can sell directly because buyers are concentrated in
few places.
Number of Companies: In case if buyers are limited in number, the manufacturer can
directly sell to them.
If consumers are scattered the manufacturers should go for larger channel.
 Product Factor
Unit Value of the Product: Lower the value of the product longer will be the channel.
Eg: Matchboxes, salt, etc.
Perishability: the shortest channel. Eg: Fruits, Vegetables, Milk, etc.
 Nature of Product: If the product is highly technical in nature, the
manufacturer sells it to the buyers.
Eg: Computers, because such products require before & after sales services.
Consumer goods, which are technical in nature he may appoint sales agent.
Eg: Motor Vehicle, TV, etc.
 Company Factors:
Finance If the company is financially sound, it can sell its products directly to its
consumers by maintaining its own warehouse, retail shops, etc.
 Management Capability:
If the management is capable of handling the distribution function efficiently, it
can prefer a shorter channel.

C .. Explain the steps in marketing planning

The steps in the marketing planning process
Marketing planning can involve two main phases. The first phase consists of analyzing the
current situation to decide which area requires more focus. During this phase, you evaluate
past promotions to verify their success, analyze the competitors and determine objectives.
Then, in the second phase, you create and develop marketing strategies.

1. Understand the current business situation.

The objective of marketing planning is to achieve the company’s business goals. To do so, it
is crucial that you understand these goals and the current business situation, including the
things that could stop you from achieving those goals. You can: Analyze the opportunities of
different markets or audiences
Make some client research to understand how they make their buying decision.
Research your brand.
2. .Understand your target client.
It is essential to kmow how your client thinks and prioritize certain things to help you
understand how they choose a new product or provider. When you know what they are
looking for, you can position yourself as such and have them choose you. You can also
research how they look for their products or providers to know how to provide them your
information.
3. .Position your brand
A successful positioning is one that attracts people’s attention to your brand and shows your
competitive advantage. You can start by understanding your differences from the
competition or differentiators. Differentiators must be true, provable and relevant. Once you
identified them, you can write messages to your audience. Remember that different
audiences are looking for various aspects of your brand, so adapt your messages by
focusing on the benefits your target wants to see.

4. .Define and refine your offer

As your clients’ needs change, you want to adapt your offer and answer those needs. This
step is guided by the previous analysis of your current business situation, competition and
clients.

5. .Choose your marketing techniques

Now that you understand your target audience, you know how and where they look for
information. Knowing this allows you to use their preferred channel to reach them. That way,
you can make your brand and expertise more visible. It is recommended to use both online
and offline marketing techniques to gain better visibility. You can also use diverse content for
the different sales funnel levels, from attracting prospects to turning them into clients.

6. .Adapt your tools and skills to your techniques

If you realize you need to add a new technique to your marketing planning, you may need
new tools. These tools may include a website, marketing automation, social media, or
search engine optimization.

7. .Write down your plan

Translate your strategy into a written plan detailing the actions to take with a timeline. This
plan will help you evaluate your progress. Your plan includes a marketing calendar and a
marketing budget. The calendar covers the period during which you implement your plan,
usually a quarter or year. It details the scheduled actions and helps you to stay consistent.
The budget shows the cost necessary to cover the tools you identified earlier. Make sure to
leave some room for contingencies, like five to ten percent of the entire budget.

A good marketing plan consists of your value proposition, information about your target
market, your positioning in the market, advertising strategies, distribution channels, and
budget allotted for the plan.

6.
A. . What is the effective market segmentation
Effective marketing segmentation is a fundamental process that helps businesses divide
their target markets into distinct segments based on consumers’ unique needs and
preferences.

B. . explain the push and pull strategy with the suitable example
The push and pull strategies are two different approaches used in marketing to bring a
product or service to the market
 Push Strategy: In a push strategy, the company promotes its product or
service directly to resellers or retailers, who then promote it to the final
consumers. The focus is on pushing the product through the distribution
channel.
An example of this would be a company providing special promotions or
discounts to retailers to encourage them to stock and sell their products
  Pull Strategy: In contrast, a pull strategy involves creating demand among
consumers so that they demand the product from retailers, who then demand
it from wholesalers or directly from the manufacturer. The focus here is on
creating consumer demand.
An example of this would be Apple’s marketing campaigns for the iPhone,
which create excitement and demand among consumers, leading them to
seek out Apple products at retailers.
Both strategies have their own advantages and are often used together to
maximize the reach and effectiveness of marketing efforts.

C…explain detail advantage and disadvantages of digital marketing

Advantages of digital marketing:

1. Global Reach: With digital marketing, you can reach a global audience, expanding your
customer base beyond geographical limitations.
2. Cost-Effective: Compared to traditional marketing methods, digital marketing can be
more cost-effective, allowing you to reach a larger audience without breaking the bank.
3. Targeted Advertising: Digital marketing enables you to target specific
demographics, interests, and behaviors, ensuring that your message reaches the right
people.
4. Measurable Results: Digital marketing provides detailed analytics and metrics,
allowing you to track the effectiveness of your campaigns and make data-driven
decisions.
5. Increased Engagement: Through social media and interactive content, digital
marketing helps you engage with your audience, build relationships, and foster customer
loyalty.

Disadvantages of digital marketing:

1. Information Overload: With the abundance of online content, it can be challenging to
capture and retain the attention of your target audience.
2. Technical Challenges: Digital marketing requires technical knowledge and
expertise, which can be a barrier for businesses without the necessary resources or
skills.
3. Privacy Concerns: Collecting and using customer data for digital marketing purposes can
raise privacy concerns and ethical considerations.
4. Intense Competition: The digital landscape is highly competitive, making it challenging
to stand out and differentiate your brand from competitors.
5. Rapidly Changing Trends: Digital marketing tactics and platforms evolve quickly,
requiring businesses to constantly adapt and stay up-to-date to remain effective.

Remember, these are just some of the advantages and disadvantages of digital marketing.
It’s important to consider your specific business goals and resources when deciding on your
marketing strategies.

7..
A. . what are the features of market audit
Sure, let’s talk about the features of a market audit!
A market audit is a comprehensive evaluation of a company’s marketing environment,
strategies, and performance. It helps businesses gain insights into their market position,
identify opportunities, and make informed decisions. Here are some key features of a market
audit:
1. External Environment Analysis:
A market audit examines the external factors that impact a business, such as industry
trends, competitors, customer behavior, and economic conditions. This analysis
helps identify market opportunities and potential threats.

2. Internal Assessment:
It evaluates the company’s internal resources, capabilities, and performance. This includes
analyzing the marketing mix (product, price, place, and promotion), sales data, customer
feedback, and brand perception.

3. SWOT Analysis:
A market audit often includes a SWOT analysis, which stands for strengths, weaknesses,
opportunities, and threats. This framework helps identify the company’s internal strengths
and weaknesses, as well as external opportunities and threats.

4. Market Segmentation and Targeting:

A market audit assesses how well the company segments its target market and tailors its
marketing efforts to specific customer segments. It helps determine if the company is
effectively reaching its desired audience.

5.Marketing Strategy Evaluation:

The audit evaluates the effectiveness of the company’s marketing strategies and initiatives.
It assesses factors such as brand positioning, messaging, advertising campaigns, and
digital marketing efforts.

6.Performance Metrics:
A market audit includes analyzing key performance indicators (KPIs) to measure the
success of marketing efforts. This may include metrics like sales revenue, market share,
customer acquisition and retention rates, and return on investment (ROI).

7.Recommendations and Action Plan

Based on the findings of the market audit, recommendations are made to improve the
company’s marketing strategies and performance. An action plan is developed to implement
these recommendations and track progress over time.

Remember, a market audit is a dynamic process that should be conducted periodically to

stay updated with the ever-changing market landscape. It helps businesses stay competitive
and adapt to evolving customer needs and market trends.

B. .write a note on
a.Neuro marketing
b.sensory marketing
c. Green marketing

a. Neuromarketing
 a fascinating field that combines neuroscience and marketing to understand how the brain
responds to marketing stimuli. It helps businesses gain insights into consumer behavior and
make more effective marketing strategies.

By studying brain activity, eye movements, and other physiological responses,

neuromarketing aims to uncover subconscious influences on consumer decision-making. It
explores how emotions, memories, and cognitive processes play a role in shaping consumer
preferences and purchasing behavior.

Neuromarketing techniques include brain imaging technologies like functional magnetic

resonance imaging (fMRI), electroencephalography (EEG), and eye-tracking. These
methods provide valuable data on how consumers process information, engage with
advertisements, and form brand associations.

With the insights gained from neuromarketing research, businesses can optimize their
marketing strategies. They can create more compelling advertisements, design products that
resonate with consumers on a deeper level, and enhance the overall customer experience.

It's important to note that neuromarketing is just one tool in the marketing toolbox. It should
be used in conjunction with other research methods and data analysis to gain a
comprehensive understanding of consumer behavior.

I find the intersection of neuroscience and marketing truly fascinating! It’s amazing how our
brains influence our decisions, even when we’re not consciously aware of it.
b.sensory marketing
Sensory marketing is a strategy that focuses on engaging consumers’ senses to
create memorable and impactful brand experiences. It recognizes that our senses
play a vital role in how we perceive and remember brands, products, and
experiences.

Here are some key aspects of sensory marketing

1.Sight:
Visual elements like colors, shapes, and imagery can evoke emotions and influence
consumer perception. Brands use visual cues in their packaging, advertising, and store
design to create a visually appealing and consistent brand image.

2. Sound:
Music, jingles, and sound effects can create a specific atmosphere and trigger emotional
responses. Brands carefully select audio elements that align with their brand personality
and evoke the desired emotions in their target audience.

3. Smell:
Certain scents can evoke strong emotions and memories. Brands use scent marketing by
infusing their stores, products, or advertisements with pleasant fragrances to create a
sensory connection and enhance the overall brand experience.

4. Taste:
Food and beverage brands heavily rely on taste to create positive associations and build
brand loyalty. Offering samples, creating unique flavors, and focusing on taste sensations
can leave a lasting impression on consumers.

5. Touch:
The tactile experience can influence consumer perception and product preference. Brands
consider the texture, weight, and feel of their products to create a sensory experience that
aligns with their brand values and target audience preferences.

By engaging multiple senses, brands can create a holistic and immersive brand
experience that goes beyond traditional marketing approaches. It helps to create
stronger emotional connections with consumers and enhances brand recall and
loyalty.

c.Green marketing

Green marketing is the marketing of products that are presumed to be environmentally safe.
It incorporates a broad range of activities, including product modification, changes to the
production process, sustainable packaging, as well as modifying advertising.

Green marketing example: Starbucks

When it comes to environmentally-friendly business practices, Starbucks is one of the few
corporations that has not only embraced but has also remained dedicated. The usage of
power by Starbucks is minimized with solar energy.

Aside from that, they’ve made a point of employing eco-friendly building materials in their
outlets. For the benefit of the city’s streets, they ran a highly successful Facebook campaign
encouraging people to help plant trees and paint the sidewalks.

Throughout the world, this green marketing example was hailed as a success. They’re now
attempting to make use of recyclable cups in order to cut down on the amount of garbage
they generate.

The Greener Store Framework, co-developed with WWF in 2018, aims to expedite retail’s
transition to lower-impact shops that reduce carbon emissions, water use, and landfill trash.
Starbucks operates more than 2,300 Greener Stores in the U.S. and Canada and will use
the framework outside of North America to develop and convert 10,000 by 2025.

C… explain the concept of product life cycle and discuss the various market in
strategies used in different stages of PLC with example

Product Life Cycle Concept

We have a life cycle, we are born, we grow, we mature, and finally we pass away. Similarly,
products also have life cycle, from their introduction to decline them progresses through a
sequence of stages. The major stages of the product life cycle are – introduction, growth,
maturity, and decline. Product life cycle describes transition of a product from its
development to decline.
The time period of product life cycle and the length of each stage vary from product to
product. Life cycle of one product can be over in few months, and of another product may
last for many years. One product reach to maturity in years and another can reach it in few
months. One product stays at the maturity for years and another just for few months. Hence,
it is true to say that length of each stage varies from product to product.
Product life cycle is associated with variation in the marketing situation, level of competition,
product demand, consumer understanding, etc., thus marketing managers have to change
the marketing strategy and the marketing mix accordingly.
Product life cycle can be defined as “the change in sales volume of a specific product offered
by an organization, over the expected life of the product.”

Stages of the Product Life Cycle

The four major stages of the product life cycle are as follows:- Stage 1 Introduction,
Stage 2 Growth,

Stage 3 Maturity,

Stage 4 Saturation,

Stage 5 Decline

 Introduction Stage

At this stage the product is new to the market and few potential customers are aware with
the existence of product. The price is generally high. The sales of the product is low or may
be restricted to early adopters. Profits are often low or losses are being made, this is
because of the high advertising cost and repayment of developmental cost. At the
introductory stage:-
The product is unknown,
The price is generally high,
The placement is selective, and
The promotion is informative and personalised.

 Growth Stage

At this stage the product is becoming more widely known and acceptable in the market.
Marketing is done to strengthen brand and develop an image for the product. Prices may
start to fall as competitors enter the market. With the increase in sales, profit may start to be
earned, but advertising cost remains high. At the growth stage:-
The product is more widely known and consumed,
The sales volume increases,
The price begin to decline with the entry of new players,
The placement becomes more widely spread, and
The promotion is focused on brand development and product image formation.

 Maturity Stage

At this stage the product is competing with alternatives. Sales and profits are at their peak.
Product range may be extended, by adding both wide and depth. With the increases in
competition the price reaches to its lowest point. Advertising is done to reinforce the product
image in the consumer’s minds to increase repeat purchases. At maturity stage:-
The product is competing with alternatives,
The sales are at their peak,
The prices reaches to its lowest point,
The placement is intense, and
The promotion is focused on repeat purchasing.

 Saturation Stage: This is the stage when the sales reach the peak point.
Competition intensifies further & profit begins to decline. Small
competitors may withdraw from the market because of their incapability to
face the competition.
Marketing Strategies: This is the stage where the marketing manager must try to reposition
his product. Most of the strategies in this stage are offensive in nature. Each manufacture
tries to cut down his competitor’s market share by aggressive promotion policy. The
objective of marketing in this stage is to retain the present sales level.

 Decline Stage

At this stage sales start to fall fast as a result product range is reduced. The product faces
reduced competition as many players have left the market and it is expected that no new
competitor will enter the market. Advertising cost is also reduced. Concentration is on
remaining market niches as some price stability is expected there. Each product sold could
be profitable as developmental costs have been paid at earlier stage. With the reduction in
sales volume overall profit will also reduce. At decline stage:-
The product faces reduced competition,
The sales volume reduces,
The price is likely to fall,
The placement is selective, and
The promotion is focused on reminding.

8.
CASE STUDY
HEALTH FOOD IS REGIONAL MANUFACTURING OF MILK BASED HEALTH
DRINKS.THE COMPANY WAS PLANNING TO EXPAND AND RECRUITED AND
EXPERIENCED MARKETING MANGER TO ACHIEVE THIS GOAL MR RAKESH THE
NEW MARKETING MANAGER FOUND THAT HEALTHY FOODS HAD NOW EXECUTED
ITS MARKETING PROGRAMS IN A SYSTEMATIC WAY .HE FELT IT WAS NECESSARY
TO IDENTIFY THE RIGHT SEGMENTATION

A. What is the possible segmentation apporch that Rakesh can adopt and why?
Expanding a milk manufacturing company offers various segmentation
possibilities: Demographic Segmentation: Targeting specific age groups,
genders, income levels, or education levels.Psychographic
 Segmentation: Focusing on lifestyle, values, interests, or
personality traits of the target consumers. Behavioral Segmentation:
Dividing consumers based on their purchasing behavior, such as
frequency, loyalty, or benefits sought. Geographic Segmentation:
Targeting consumers based on their location, such as urban vs.
rural areas or regions with specific dietary preferences
 Product Segmentation: Offering different types of milk products
like organic, flavored, lactose-free, or fortified milk to cater to
diverse consumer needs
 Distribution Channel Segmentation: Selling through various
channels like supermarkets, convenience stores, or online platforms
to reach different consumer segments
 Occasion Segmentation: Tailoring products for specific occasions
like breakfast, snacks, or post-workout consumption
 Rakesh can analyze market research data to identify which
segmentation strategies align best with his company’s capabilities
and target market preferences.

B…select one segment and develop the marketing mix for segment?

Let’s focus on developing the marketing mix for the segment of health-conscious
consumers for the milk manufacturing company.
 Product: Offer organic, low-fat, and lactose-free milk options. Introduce
specialty products like almond milk, soy milk, and oat milk to cater to
various dietary preferences. Ensure high quality and freshness through
efficient production and distribution processes
 Price: Implement competitive pricing strategies to attract health-conscious
consumers Offer discounts for bulk purchases or subscription services
Consider premium pricing for organic and specialty products to reflect
their higher value.
 Place: Distribute products through supermarkets, health food stores, and
online platforms. Partner with gyms, fitness centers, and health-focused cafes
for additional distribution channels. Ensure widespread availability to reach
the target segment effectively
 Promotion: Utilize social media platforms to showcase the health benefits of
milk products and engage with the target audience. Collaborate with health
influencers and nutritionists to endorse the brand and its products. Sponsor
health-related events and workshops to increase brand visibility and
credibility
.
 Offer sampling programs in high-traffic areas or health-centric events to
introduce products to potential customers By focusing on these elements,
the milk manufacturing company can effectively tailor its marketing efforts to appeal
to health-conscious consumers and drive sales within this segment.