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Summer 2011- May drive
Master of Business Administration MBA Semester 2
MB0046 Marketing Management - 4 Credits
(Book ID: B1135)
Assignment Set- 1
60 Marks
Note: Each question carries 10 Marks. Answer all the questions.
Q.1 Discuss the different marketing concepts with its merits and
drawbacks. [10 marks]
Ans:
The Marketing Concept The Marketing Concept proposes that a companys task is to
create, communicate and deliver a better value proposition through its marketing offer, in
comparison to its competitors; to its target segment and that this customer oriented
approach only can lead to success in the market place.
Today, marketing function is seen as one of the most important functions in the
organization. Many marketers put the customers at the centre of the company and argue
in favor of such a customer orientation, where all functions work together to respond,
serve and satisfy the customer.
Many successful and well known multinational companies have adopted marketing
concept as their business and marketing philosophies. Many Indian companies in the
banking and other service sectors follow customer orientation and service as their motto.
According to this concept, a companys marketing effort must start right from
identifying, through Market Research, exact needs and wants of the target market.
Merits And Drawbacks
1. Needs and Wants
2. Demand
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3. Product And Services
4. Targets Market
5. Marketing Management
6. Values And Satisfaction
Q.2 a) What are the features and objectives of marketing
research? [5 marks]
Ans:
Marketing Research is " the function that links the consumer, customer, and public to the marketer
through information information used to identify and define marketing opportunities and problems;
generate, refine, and evaluate marketing actions; monitor marketing performance; and improve
understanding of marketing as a process. Marketing research specifies the information required to
address these issues, designs the method for collecting information, manages and implements the data
collection process, analyzes the results, and communicates the findings and their
implications."[1] Marketing research is the systematic gathering, recording, and analysis of data about
issues relating to marketing products and services. The goal of marketing research is to identify and
assess how changing elements of themarketing mix impacts customer behavior. The term is commonly
interchanged with market research; however, expert practitioners may wish to draw a distinction, in
that marketresearch is concerned specifically with markets, while marketingresearch is concerned
specifically about marketing processes.[2]
Marketing research is often partitioned into two sets of categorical pairs, either by target market:
Consumermarketing research, and
Business-to-business (B2B) marketing research
Or, alternatively, by methodological approach:
Qualitative marketing research, and
Quantitative marketing research
http://en.wikipedia.org/wiki/Marketing_research#cite_note-0http://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Customer_behaviorhttp://en.wikipedia.org/wiki/Market_researchhttp://en.wikipedia.org/wiki/Market_researchhttp://en.wikipedia.org/wiki/Marketshttp://en.wikipedia.org/wiki/Marketshttp://en.wikipedia.org/wiki/Marketing_research#cite_note-McDonald-1http://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Customer_behaviorhttp://en.wikipedia.org/wiki/Market_researchhttp://en.wikipedia.org/wiki/Marketshttp://en.wikipedia.org/wiki/Marketing_research#cite_note-McDonald-1http://en.wikipedia.org/wiki/Marketing_research#cite_note-0 -
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Consumer marketing research is a form of appliedsociologythat concentrates on understanding the
preferences, attitudes, and behaviors ofconsumersin a market-based economy, and it aims to
understand the effects and comparative success of marketing campaigns. The field of consumer
marketing research as a statistical science was pioneered by Arthur Nielsen with the founding of
theACNielsen Company in 1923.[3]
Thus, marketing research may also be described as the systematic and objective identification, collection,
analysis, and dissemination of information for the purpose of assisting management in decision making
related to the identification and solution of problems and opportunities inmarketing.[4]
=Features of Marketing Research
1. IT IS A SYSTEMATIC PROCESS
It has yo be carried out in a stepwise and
systematic manner and the whole process needs to be
planned with a clear objective.
2. IT SHOULD BE OBJECTIVE
It is important that the methods
employed and interpretations are objective . The research should
not be carried out to establish an opinion nor should it be
intentionally suitable towords predetermined results.
3.IT IS MULTI-DISCIPLINARY
Marketing Research draw concepts
from outher discipline such as statistic for obtaining reliable data
and from Economics, Psychology ,for better understanding of
buyears.
http://en.wikipedia.org/wiki/Sociologyhttp://en.wikipedia.org/wiki/Sociologyhttp://en.wikipedia.org/wiki/Sociologyhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Arthur_Nielsenhttp://en.wikipedia.org/wiki/ACNielsenhttp://en.wikipedia.org/wiki/Marketing_research#cite_note-2http://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Marketing_research#cite_note-Malhotra-3http://en.wikipedia.org/wiki/Sociologyhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Arthur_Nielsenhttp://en.wikipedia.org/wiki/ACNielsenhttp://en.wikipedia.org/wiki/Marketing_research#cite_note-2http://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Marketing_research#cite_note-Malhotra-3 -
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integrating data from various sources; developing methods ofdataanalysis for segmentation; establishing effective communicationamong relevant business units (such as marketing and customerservice) about the segmentation; and implementing applications toeffectively deal with the data and respond to the information itprovides.
a)>Market segmentation is a concept in economics and marketing. A marketsegment is a sub-set of a market made up of people or organizations sharing oneor more characteristics that cause them to demand similar product and/orservices based on qualities of those products such as price or function. ...
is the process of dividing markets comprising the heterogeneous needs of manyconsumers into smaller parts or segments comprising the homogeneous needsof smaller groups of consumers.
the division of a market into distinct groups of buyers or decision makers.
The process of dividing a total market into subgroups of consumers, or potentialconsumers, who are similar in some way. Learn More
Market segmentation is a marketing approach that encompasses theidentification of different groups of customers with different needs or responses
to marketing activity. The market segmentation process also considers which ofthese segments to targ
A way of analyzing a market by specific characteristics in order to create a targetmarket.
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To divide a market by a strategy directed at gaining a major portion of sales to asubgroup in a category, rather than a more limited share of purchases by all
category users.
A market segment consist of a group of customers who share similar set of wants6
the process of dividing a market into smaller sections (segments) which containcustomers with similar needs and wants. There are various bases ofsegmentation - two of them are demographic and geografic.
The process of defining the socio-economic characteristics of the demand for aspecific property.
Companies cannot profitably serve all consumers in a given marketat least notall consumers in the same way. Thus, a company must take three steps todetermine how they will sell in the available markets. The first step in thatdecision
a) Process of dividing the market according to similarities that exist among the
various subgroups within the market. The similarities may be common characteristics
or common needs and desires. Market segmentation comes about as a result of the
observation that all potential users of a product are not alike, and that the same
general appeal will not interest all prospects. Therefore, it becomes essential to
develop different marketing tactics based on the differences among potential users in
order to effectively cover the entire market for a particular product. There are four
basic market segmentation strategies: behavior segmentation, demographic
segmentation, geographic segmentation, and physiographic segmentatio
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Q.5 Mention the forces in micro and macro environment that are
likely to influence an
organisations working and functions. Is environmental scanning
necessary for all
organisations? [10 marks].
A)
The micro-environment
This environment influences the organization directly. It includes suppliers that deal directly or indirectly, consumers
and customers, and other local stakeholders. Micro tends to suggest small, but this can be misleading. In this context,
micro describes the relationship between firms and the driving forces that control this relationship. It is a more local
relationship, and the firm may exercise a degree of influence.
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The macro-environment
This includes all factors that can influence and organization, but that are out of their direct control. A company does
not generally influence any laws (although it is accepted that they could lobby or be part of a trade organization). It is
continuously changing, and the company needs to be flexible to adapt. There may be aggressive competition and
rivalry in a market. Globalization means that there is always the threat of substitute products and new entrants. The
wider environment is also ever changing, and the marketer needs to compensate for changes in culture, politics,
economics and technology.
Ans 1. a. Micro Environment Forces:
The Company :A company Safe Express, a leader in the supply chain management solution wants to hold itsnumber oneposition in the US $ 90 billion Indian logistics market. The company plans to expand its serviceareas in the coming months. To meet the targets of the marketing plan, other departments ofsafe express also expanding their horizon. The Company is coming out with logistics parks indifferent cities; plans to hold seven million square feet of warehousing capacity in the next threeyears and invest Rs 10 billion in three years to meet those targets.The above example shows that the companys marketing plan should be supported by the otherfunctional departments also.
IntermediariesMarketing intermediaries: These are firms which distribute and sell the goods of the company tothe consumer.Marketing intermediaries play an important role in the distribution, selling and promoting thegoods and services. Stocking and delivering, bulk breaking, and selling the goods and servicesto customer are some of the major functions carried out by the middlemen. Retailers,wholesalers, agents, brokers, jobbers and carry forward agents are few of the intermediaries.Retailers are final link between the company and the customers. Their role in the marketing ofproduct is increasing every day.Publics These are microenvironment groups, which help a company to generate the financialresources, creating the image, examining the companies policy and developing the attitudetowards the product.
We can identify six types of publics :1. Financial publics influence the companys ability to obtain funds. For example, Banks,investment houses and stockholders are the major financial publics.2. Media publics carry news and features about the company e.g. Deccan Herald3. Advertisement regulation agencies, telecom regulation agency( TRAI),and insurance regulation agency(IRDA) of the government4. Citizen action groups: Formed by the consumer or environmental groups. For example,people for ethical treatment of animals (PETA) or Greenpeace.
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5. General publics: a company should be concerned towards general publics attitude towardsits products and services.6. Internal publics: Employees who help in creating proper image for the company through wordof mouth.Competitors.A company should monitor its immediate competitors as its sale will be affected by the nature
and intensity of the competitors. The sale of Coca cola will be affected by Pepsi cola, orBritannia cheese by Amul cheese. Michael Porter, the author of Competitive Advantage ofNations suggested that, in addition to direct competition, companies should also considercompetition from substitutes. In addition to existing competitors, the potential competitors shouldalso be anticipated. Competition may arise froma. Small firms with low overheads producing duplicates.b. Firms which diversify into certain products by merely being in the particular industry for e.g.Pepsi entered the snacks sector competing with pure snack producers like Haldiram.c. Firms which expand in the same vertical for e.g. Godrej which manufactured office furnitureand steel cupboards went on to the entire range of home furniture thereby giving competition topure home furniture makers.How do companies or enterprises survive and grow under the above circumstances. While we
shall study this in detail later, a simple step could be that the product should be positioneddifferently and the company should be able to provide better services.SuppliersThere are many kinds of suppliers to an enterprise or an institution. There are typically, rawmaterial suppliers, energy and fuel suppliers, labour suppliers, office item suppliers and so on.Suppliers are the first link in the entire supply chain of the company. Hence any problems orcost escalation in this stage will have direct effect on the company. Many companies adoptedsupplier relation management system to manage them well. Suppliers are a source ofcompetition to firms today. For a large retail store like Reliance Retail or Big Bazaar thesuppliers play the most significant role in both cost and time. Timely supplies reduce stocking ofgoods and blocking of space, at the same time meet customer requirements.In a globalised scenario suppliers are even more important as competition goes up manifold!
The Tamil Nadu State Electricity Board imports coal from New Zealand despite huge coalreserves in India. For Volvo, India is a manufacturing hub.CustomersA company may sell their products directly to the customer or use marketing intermediaries toreach them. Direct or indirect marketing depends on what type of markets Company serves.Generally we can divide the markets into five different categories.They area. Consumer market.b. Business marketc. Reseller marketd. Government market ande. International market
The following example illustrates different markets.MRF, a tyre company sells its product directly to consumer (in case of urgency, customerpurchases directly from showroom) i.e. operates in consumer market. It operates in businessmarkets by selling tyres to companies like Maruti Udyog limited. MRF also sells TYREs toBMTC and KSRTC, transport organizations of Karnataka government. If MRF sells tyres inAfrican or American countries then it is operating in the international market. If MRF buys theold tyres, retreads it and sells it to the consumer at a profit then company is operating in thereseller market.
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b) The different ad appeals-A) Emotional appeal:
Positive emotional appeal or negative emotional appeals are strong tools
used to intensify the purchasing activity of the customer. Positive emotions
like love, pride, joy and humor are used in the message. Following are theadvertisement where such attributes of positive emotions used.
e.g. BMW fastest saloon car in the world- pride
e.g. Fevicol humor
e.g. Wheel- love.
The negative emotions like fear guilt and shame are also used in the
advertisement to attract the customer.
e.g. NIIT- if you are not studying at NIIT you are missing somethingguilt
e.g. Rexona deodorant shame
B)Rational appeals:
The rational appeals highlight on the desired benefits about the products.
They highlight quality, economy value or performance of the product.
e.g. Dabur Amla value appeal ( long Hair)
e.g. Lakme brilliance- Quality products.
e.g. Reliance India mobile- performance( works even in flood situations)
e.g. Reliance Infocom- Like the first three, the mobile phone must come to
me as a necessity and not as a luxury- economy
C) Moral appeal:These are concerned towards public health or environment or social
responsibility.
e.g. Shell lubricants show its commitment towards environment in their
advertisements.
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Q.6 Consider the company, Maruthi Udyog Limited.
Elaborate on the companys marketing
mix and give examples related to the 4 Ps. [10 marks]Summer
2011- May drive
Ans:
Marketing mix 4Ps .?
Marketers use different tools in order to get the desired response from the customers or
best satisfy their needs. These tools are known asThe Marketing Mix. Marketing Mix
is probably the most famous term inmarketing.
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Marketing Mix
Marketing Mix is a combination of marketing tools that a company uses to satisfy
their target customers and achieving organizational goals. McCarthy classified all
thesemarketing tools under four broad categories:
Product
Price
Place
Promotion
These four elements are thebasic components of a marketing plan and are
collectively called 4 Ps of marketing. 4 Ps pertain more to physical products than
services. Below is an illustration for marketing mix.
The important thing to note is that all these four Ps (variable) are controllable,
subject to internal and external constraints of marketing environment. Marketers, using
different blends of these variables, can target different group of customers having
different needs. So, a customer may call marketing mix the offering.
>Product
Product is the actual offering by the company to its targeted customers which also
includes value added stuff. Product may be tangible (goods) or intangible (services).
While formulating the marketing strategy, product decisions include:
What to offer?
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Brand name
Packaging
Quality
Appearance
Functionality
Accessories
Installation
After sale services
Warranty
>Price
Price includes the pricing strategyof the company for its products. How much
customer should pay for a product? Pricing strategy not only related to the profit
margins but also helps in finding target customers. Pricing decision also influence the
choice of marketing channels. Price decisions include:
Pricing Strategy (Penetration, Skim, etc)
List Price
payment period
Discounts
Financing Credit terms
Using price as a weapon for rivals is as old as mankind. but its risky too. Consumers are
often sensitive for price, discounts and additional offers. Another aspect of pricing is
that expensive products are considered of good quality.
>Place (Placement)
It not only includes the placewhere the product is placed, all those activities
performed by the company to ensure the availability of the product tot he targeted
customers. Availability of the product at the right place, at the right time and in the right
quantity is crucial in placement decisions.
Placement decisions include:
Placement
Distribution channels
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Logistics
Inventory
Order processing
Market coverage
selection of channel members
>Promotion
Promotion includes all communication and selling activities to pursuade future
prospects to buy the product. Promotion decisions include:
Advertising
Media Types
Message
Budgets
Sales promotion
Personal selling
Public relations
Direct marketing
As these costs are huge as compared to product price, So its good to perform a break-
even analysis before allocating the budget. It helps in determining whether the new
customers are worth of promotion cost or not.
It often takes time and requires market research to develop a successful marketing mix.
You should not depend on one mix always try new mixes. While designing the mix,
make changes to all mixes in such a way that all conveys the same message. Dont
confuse your customers by just changing one variable and keeping the rest same.
Master of Business Administration MBA Semester 2
MB0046 Marketing Management - 4 Credits
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(Book ID: B1135)
Assignment Set- 2
60 Marks
Note: Each question carries 10 Marks. Answer all the questions.
Q.1 Explain the following: a) Product mix dimensions b) Product
line strategies [10 marks]
Ans:
a) Product Mix
Product mix: The number of product lines and items offered by marketer to the
consumers
A companys product mix has four different dimensions. They are product mix width,
product mix length, product mix depth and product mix consistency.
The following shows the product mix of Jyothy Laboratories:
Fabric care
House hold
insecticide
Utensil
cleaners Fragrances Personal care
Allied
business
Ujala supreme
(9ml, 30ml,
75ml,
125ml,250ml)
Maxo
cyclothrin coil
(8hr, 10hr, 12hr)
Exo dish
wash bar
(100g, 200g
380g)
Maya
(8, 15, 20, 40
and 100
sticks.)
Jeeva Natural
(Coconut Milk
with MilkProtein,
Coconut Milk
with Jasmine
and Coconut
Milk with
Kasturi
Manjal, and is
presented in
75gm packs. )
Continental
special
Ujala washing
powder
(25g, 500g,
1Kg)
Max vaporizer
(30ml, 45ml)
Exo dish
wash liquid
(500ml,
125ml)
Marketing of
godrej Tea
Stiff & shine
(20gm sachets,
100ml and
Max aerosol
(150ml,300ml)
Marketing of
Ekta dhoop
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200ml bottles)
Product mix width: The total number of product lines that company offers to the consumers.
For example, Jyothy Laboratories product mix has six lines. Hence the width is 6
Product mix length: The total number of items that company carries within its product line.For example, Jyothy Laboratories fabric care division has three items
Product line depth: The number of versions offered of each product in the line.
For example, Jyothy Laboratories Jeeva Natural is offered in three versions i.e. Coconut Milk withMilk Protein, Coconut Milk with Jasmine and Coconut Milk with Kasturi Manjal, and is presented in75gm packs.
Product mix consistency: If companys product lines usage, production and marketing are related,then product mix is consistent, else it is unrelated.
In the case of Jyothy Laboratories, all six product lines are FMCGs. Hence it is having consistentproduct mix. But ITC Companys cigarette and cloth product lines are totally unrelated.\
Ans:
Product Line Startegies
b): Product line: The group of related products which uses same marketing efforts to reach
the consumer.
The product line identifies profitable and unprofitable products and helps in allocation of
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resources according to that. The product line understanding helps the marketer to take
line extension, line pruning and line filling strategies of the company.
Pidilite Industries, the adhesives and chemical company, have the following group of
related products (or product lines) in consumer and business markets.
Consumer market.
1. Adhesives and sealants.
2. Art materials and stationeries.
3. Construction chemicals.
4. Automotive chemicals
5. Fabric care
Business market
1. Industrial adhesives.
2. Textile chemicals.3. Organic pigment powders.
4. Industrial resins and
5. Leather chemicals.
Product Line Decisions:
The major product line decisions are
a. Product line length
b. Product line stretching
c. Product line filling
d. Product line pruning
a. Product line length: The number of items in the product line is called the product line
length. Company should decide whether it requires longer chain or shorter length. The
decision depends upon the objective of the company, competitive environment and
profitability. If the chain is short company can add new products and if it is lengthy
company can reduce the number of products. For example, Pidilites adhesives and
sealants line has following 11 items in the product line. Hence the length of product line
is 11
1. White Glue2. Paper Glue
3. Glue Stick
4. Instant Adhesive
5. Epoxy Putty
6. Epoxy Adhesive
7. PVC Insulation
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Tape
8.
Silicone
Sealants
9. Contact Glue
10. All Purpose
Glue
11.
Maintenance
Spray
b. Product line stretching: Company lengthens its product line either by stretching
upwards or downwards or both ways. Line stretching decision depends on three
situations:-i. Company which operates in high end market may come up with mid class or low class
targeted products.
ii. The company which operates in lower end of market may come up with high end
market products.
iii. If the company operates in mid segment and comes out with low end product as well
as high end product then it is stretching both ways.
For example, Maruti Suzuki Limited launched its first product, Maruti 800 in the year
1983 and in the year 1985 it launched Maruti Gypsy. Gypsy is costlier than Maruti 800
and targeted for higher segment. This shows that the company extended its product line
upwards or in short, upward stretch.
Tata Motors launched their Rs 1 lakh car NANO in the year 2008. The company which
was targeting upper class and middle class with their products SUMO and Indica
respectively, has stretched downwards to reach the lower level segment. This illustrates
the downward stretch.
Toyota Kirloskar Limited which extended their line from Qualis and Corolla to Innova
and Camry is planning to come out with small car in India. This clearly illustrates the two
way stretch of the product line.c. Product line filling: Adding more items in the present product line. For example, in
the year 2000 Maruti Suzuki launched Alto. This product was between Maruti 800 and
Maruti Zen. Here company was trying to fill the gap existing in the segment by
introducing ALTO, i.e. line filling.
d. Product line pruning: Removing the unprofitable products form the product line.
Toyota Kirloskar phased out their well known brand Qualis when they thought the brand
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was not adding value to the product line.
Q.2 a) Assess the factors that are involved in setting up a
distribution channel. [6 marks]
Ans:
As noted, distribution channels often require the assistance of others in order for the
marketer to reach its target market. But why exactly does a company need others to help
with the distribution of their product? Wouldnt a company that handles its own distribution
functions be in a better position to exercise control over product sales and potentially earn
higher profits? Also, doesnt the Internet make it much easier to distribute products thus
lessening the need for others to be involved in selling a companys product?
While on the surface it may seem to make sense for a company to operate its own
distribution channel (i.e., handling all aspects of distribution) there are many factors
preventing companies from doing so. While companies can do without the assistance of
certain channel members, for many marketers some level of channel partnership is needed.
For example, marketers who are successful without utilizing resellers to sell their product
(e.g., Dell Computers sells mostly through the Internet and not in retail stores) may stillneed assistance with certain parts of the distribution process (e.g., Dell uses parcel post
shippers such as FedEx and UPS). In Dells case creating their own transportation system
makes little sense given how large such a system would need to be in order to service
Dells customer base. Thus, by using shipping companies Dell is taking advantage of the
benefits these services offer to Dell and to Dells customers.
Benefits Offered by Channel Members
When choosing a distribution strategy a marketer must determine what value a channel
member adds to the firms products. Remember, as we discussed in the Product
Decisions tutorial, customers assess a products value by looking at many factors including
those that surround the product (i.e., augmented product). Several surrounding features can
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be directly influenced by channel members, such as customer service, delivery, and
availability. Consequently, for the marketer selecting a channel partner involves a value
analysis in the same way customers make purchase decisions. That is, the marketer must
assess the benefits received from utilizing a channel partner versus the cost incurred for
using the services. These benefits include:Cost Savings in Specialization Members of the distribution channel are specialists
in what they do and can often perform tasks better and at lower cost than companies
who do not have distribution experience. Marketers attempting to handle too many
aspects of distribution may end up exhausting company resources as they learn how
to distribute, resulting in the company being a jack of all trades but master of none.
Reduce Exchange Time Not only are channel members able to reduce distribution
costs by being experienced at what they do, they often perform their job more rapidly
resulting in faster product delivery. For instance, consider what would happen if a
grocery store received direct shipment from EVERY manufacturer that sells products
in the store. This delivery system would be chaotic as hundreds of trucks line up each
day to make deliveries, many of which would consist of only a few boxes. On a busy
day a truck may sit for hours waiting for space so they can unload their products.
Instead, a better distribution scheme may have the grocery store purchasing its
supplies from a grocery wholesaler that has its own warehouse for handling
simultaneous shipments from a large number of suppliers. The wholesaler will
distributes to the store in the quantities the store needs, on a schedule that works for
the store, and often in a single truck, all of which speeds up the time it takes to get the
product on the stores shelves.
Customers Want to Conveniently Shop for Variety Marketers have to understand
what customers want in their shopping experience. Referring back to our grocery
store example, consider a world without grocery stores and instead each marketer of
grocery products sells through their own stores. As it is now, shopping is time
consuming, but consider what would happen if customers had to visit multiple retailers
each week to satisfy their grocery needs. Hence, resellers within the channel of
distribution serve two very important needs: 1) they give customers the products they
want by purchasing from many suppliers (termed accumulating and assortment
services), and 2) they make it convenient to purchase by making products available in
single location.Resellers Sell Smaller Quantities Not only do resellers allow customers to
purchase products from a variety of suppliers, they also allow customers to purchase
in quantities that work for them. Suppliers though like to ship products they produce in
large quantities since this is more cost effective than shipping smaller amounts. For
instance, consider what it costs to drive a truck a long distance. In terms of
operational expenses for the truck (e.g., fuel, truck drivers cost) lets assume it costs
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(US) $1,000 to go from point A to point B. Yet in most cases, with the exception of a
little decrease in fuel efficiency, it does not cost that much more to drive the truck
whether it is filled with 1000 boxes containing the product or whether it only has 100
boxes. But when transportation costs are considered on a per product basis ($1 per
box vs. $10 per box) the cost is much less for a full truck. The ability of intermediariesto purchase large quantities but to resell them in smaller quantities (referred to as bulk
breaking) not only makes these products available to those wanting smaller quantities
but the reseller is able to pass along to their customers a significant portion of the cost
savings gained by purchasing in large volume.
Create Sales Resellers are at the front line when it comes to creating demand for
the marketers product. In some cases resellers perform an active selling role using
persuasive techniques to encourage customers to purchase a marketers product. In
other cases they encourage sales of the product through their own advertising efforts
and using other promotional means such as special product displays.
Offer Financial Support Resellers often provide programs that enable customers to
more easily purchase products by offering financial programs that ease payment
requirements. These programs include allowing customers to: purchase on credit;
purchase using a payment plan; delay the start of payments; and allowing trade-in or
exchange options.
Provide Information Companies utilizing resellers for selling their products depend
on distributors to provide information that can help improve the product. High-level
intermediaries may offer their suppliers real-time access to sales data including
information showing how products are selling by such characteristics as geographic
location, type of customer, and product location (e.g., where located within a store,
where found on a website). If high-level information is not available, marketers can
often count on resellers to provide feedback as to how customers are responding to
products. This feedback can occur either through surveys or interviews with resellers
employees or by requesting the reseller allow the marketer to survey customers.
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Distribution channels are the methods that companies use toenter the consumer market with their product. While many methods exist, they have changed overthe years because of the Internet and global sales.
Definition
o A distribution channel is the method a company uses to get its products into themarketplace for consumer use. The traditional channel goes from supplier,manufacturer, distributor, wholesaler and retailer. Two types of distribution channelsexist: indirect and direct.
Indirect Channel
o The indirect channel is used by companies who do not sell their goods directly toconsumers. Suppliers and manufacturers typically use indirect channels becausethey exist early in the supply chain. Depending on the industry and product, directdistribution channels have become more prevalent because of the Internet.
Direct Channel
o A direct distribution channel is where a company sells its products direct toconsumers. While direct channels were not popular many years ago, the Internet hasgreatly increased the use of direct channels. Additionally, companies needing to cutcosts may use direct channels to avoid middlemen markups on their products.
Indirect Channel Methods
o Distributors, wholesalers and retailers are the primary indirect channels a companymay use when selling its products in the marketplace. Companies choose the indirectchannel best suited for their product to obtain the best market share; it also allowsthem to focus on producing their goods.
Direct Channel Methodso Selling agents and Internet sales are two types of direct distribution channels. Selling
agents work for the company and market their products directly to consumersthrough mail order, storefronts or other means. The Internet is an easy distributionchannel because of the global availability to consumer.
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b) Give a note on Retailing. [4 marks]
Ans:
"Retail stores" redirects here. For the comic strip by Norm Feuti,see Retail (comic strip).
Drawing of a self-service store.
Retail consists of the sale of goods or merchandise from a fixed
location, such as adepartment store, boutique orkiosk, or by mail, insmall or individual lots for directconsumption by the purchaser.[1] Retailing may include subordinated services, such as delivery.Purchasers may be individuals or businesses. In commerce, a "retailer"buys goods orproducts in large quantitiesfrom manufacturers orimporters, either directly or through a wholesaler,and then sells smaller quantities to the end-user. Retail establishmentsare often called shops or stores. Retailers are at the end of the supplychain. Manufacturing marketers see the process of retailing as a
necessary part of their overall distribution strategy. The term "retailer" isalso applied where a service provider services the needs of a largenumber of individuals, such as a public utility, like electric power.
Shops may be on residential streets, shopping streets with few or nohouses or in ashopping mall. Shopping streets may be
http://en.wikipedia.org/wiki/Retail_(comic_strip)http://en.wikipedia.org/wiki/Self_servicehttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Boutiquehttp://en.wikipedia.org/wiki/Kioskhttp://en.wikipedia.org/wiki/Mailhttp://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Retail#cite_note-fas-0http://en.wikipedia.org/wiki/Commercehttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Importhttp://en.wikipedia.org/wiki/Wholesalehttp://en.wikipedia.org/wiki/End-userhttp://en.wikipedia.org/wiki/Supply_chainhttp://en.wikipedia.org/wiki/Supply_chainhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Public_utilityhttp://en.wikipedia.org/wiki/Electric_powerhttp://en.wikipedia.org/wiki/Shopping_mallhttp://en.wikipedia.org/wiki/File:US1242872.pnghttp://en.wikipedia.org/wiki/File:US1242872.pnghttp://en.wikipedia.org/wiki/Retail_(comic_strip)http://en.wikipedia.org/wiki/Self_servicehttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Boutiquehttp://en.wikipedia.org/wiki/Kioskhttp://en.wikipedia.org/wiki/Mailhttp://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Retail#cite_note-fas-0http://en.wikipedia.org/wiki/Commercehttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Importhttp://en.wikipedia.org/wiki/Wholesalehttp://en.wikipedia.org/wiki/End-userhttp://en.wikipedia.org/wiki/Supply_chainhttp://en.wikipedia.org/wiki/Supply_chainhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Public_utilityhttp://en.wikipedia.org/wiki/Electric_powerhttp://en.wikipedia.org/wiki/Shopping_mall -
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forpedestrians only. Sometimes a shopping street has a partial orfull roofto protect customers from precipitation. Online retailing, a typeofelectronic commerce used forbusiness-to-consumer(B2C)transactions and mail order, are forms of non-shop retailing.
Shopping generally refers to the act ofbuying products. Sometimes thisis done to obtain necessities such as food and clothing; sometimes it isdone as a recreational activity. Recreational shopping often involveswindow shopping (just looking, not buying) and browsing and does notalways result in a purchase.
Contents
[hide]
1 Etymology
2 Types of
retail outlets
3 Retail pricing
4 Transfer
mechanism
5 Second hand
retail
6 Sales
techniques
7 Customer
service
8 Retail Sales
9 Consolidatio
n
10 Bibliograph
y
11 See also
12 Notes
13 External
links
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[edit]Etymology
The Apple Storeretail location on theMagnificent MileinChicago.
The world's onlyGarminretail location is located on theMagnificent Mile in Chicago.
Retail comes from the Old French word retailer(compare modernFrench retailler), which means "to cut off, clip, pare, divide" in terms oftailoring (1365[citation needed]). It was first recorded as a noun with themeaning of a "sale in small quantities" in 1433[citation needed] (from the MiddleFrench retail, "piece cut off, shred, scrap, paring").[2] Like the French, theword retailin both Dutch and German (detailhandeland Einzelhandel,respectively) also refers to the sale of small quantities of items.
[edit]Types of retail outlets
http://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=1http://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=1http://en.wikipedia.org/wiki/Apple_Storehttp://en.wikipedia.org/wiki/Apple_Storehttp://en.wikipedia.org/wiki/Magnificent_Milehttp://en.wikipedia.org/wiki/Magnificent_Milehttp://en.wikipedia.org/wiki/Chicagohttp://en.wikipedia.org/wiki/Chicagohttp://en.wikipedia.org/wiki/Chicagohttp://en.wikipedia.org/wiki/Garminhttp://en.wikipedia.org/wiki/Garminhttp://en.wikipedia.org/wiki/Garminhttp://en.wikipedia.org/wiki/Magnificent_Milehttp://en.wikipedia.org/wiki/Magnificent_Milehttp://en.wikipedia.org/wiki/Chicagohttp://en.wikipedia.org/wiki/Chicagohttp://en.wiktionary.org/wiki/fr:retailerhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Retail#cite_note-1http://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=2http://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=2http://en.wikipedia.org/wiki/File:20070513_Allerton_Hotel_and_Michigan_Ave.JPGhttp://en.wikipedia.org/wiki/File:20070513_Allerton_Hotel_and_Michigan_Ave.JPGhttp://en.wikipedia.org/wiki/File:20070513_Apple_Store.JPGhttp://en.wikipedia.org/wiki/File:20070513_Apple_Store.JPGhttp://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=1http://en.wikipedia.org/wiki/Apple_Storehttp://en.wikipedia.org/wiki/Magnificent_Milehttp://en.wikipedia.org/wiki/Chicagohttp://en.wikipedia.org/wiki/Garminhttp://en.wikipedia.org/wiki/Magnificent_Milehttp://en.wikipedia.org/wiki/Chicagohttp://en.wiktionary.org/wiki/fr:retailerhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Retail#cite_note-1http://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=2 -
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San Juan de Dios Marketin Guadalajara, Jalisco
Inside a supermarket in Russia
A marketplace is a location where goods and services are exchanged.The traditionalmarket square is a city square where traders set up stallsand buyers browse the merchandise. This kind of market is very old, andcountless such markets are still in operation around the whole world.
In some parts of the world, the retail business is still dominated by smallfamily-run stores, but this market is increasingly being taken over by
large retail chains.Retail is usually classified by type of products as follows:
Food products
Hard goods ("hardline retailers") - appliances, electronics, furniture,sporting goods, etc.
Soft goods - clothing, apparel, and other fabrics.
There are the following types of retailers by marketing strategy:
Department stores - very large stores offering a huge assortment of"soft" and "hard goods; often bear a resemblance to a collection ofspecialty stores. A retailer of such store carries variety of categoriesand has broad assortment at average price. They offer considerablecustomer service.
http://en.wikipedia.org/wiki/San_Juan_de_Dios_Markethttp://en.wikipedia.org/wiki/San_Juan_de_Dios_Markethttp://en.wikipedia.org/wiki/Guadalajara,_Jaliscohttp://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/Marketplacehttp://en.wikipedia.org/wiki/Market_squarehttp://en.wikipedia.org/wiki/City_squarehttp://en.wikipedia.org/wiki/Retail_chainshttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/File:%D0%92%D1%8B%D0%BA%D0%BB%D0%B0%D0%B4%D0%BA%D0%B0_%D1%85%D0%BB%D0%B5%D0%B1%D0%BE%D0%B1%D1%83%D0%BB%D0%BE%D1%87%D0%BD%D1%8B%D1%85_%D0%B8%D0%B7%D0%B4%D0%B5%D0%BB%D0%B8%D0%B9.jpghttp://en.wikipedia.org/wiki/File:MercadodeSanJuandeDios.jpghttp://en.wikipedia.org/wiki/File:MercadodeSanJuandeDios.jpghttp://en.wikipedia.org/wiki/San_Juan_de_Dios_Markethttp://en.wikipedia.org/wiki/Guadalajara,_Jaliscohttp://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/Marketplacehttp://en.wikipedia.org/wiki/Market_squarehttp://en.wikipedia.org/wiki/City_squarehttp://en.wikipedia.org/wiki/Retail_chainshttp://en.wikipedia.org/wiki/Department_store -
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Discount stores - tend to offer a wide array of products andservices, but they compete mainly on price offers extensiveassortment of merchandise at affordable and cut-rate prices.Normally retailers sell less fashion-oriented brands.
Supermarkets - sell mostly food products; Warehouse stores - warehouses that offer low-cost, often high-quantity goods piled on pallets or steel shelves; warehouseclubs charge a membership fee;
Variety stores or "dollar stores" - these offer extremely low-costgoods, with limited selection;
Demographic - retailers that aim at one particular segment (e.g.,high-end retailers focusing on wealthy individuals).
Mom-And-Pop : is a retail outlet that is owned and operated byindividuals. The range of products are very selective and few innumbers. These stores are seen in local community often are family-run businesses. The square feet area of the store depends on thestore holder.
Specialty stores: A typical speciality store gives attention to aparticular category and provides high level of service to thecustomers. A pet store that specializes in selling dog food would beregarded as a specialty store. However, branded stores also comeunder this format. For example if a customer visits a Reebok or Gapstore then they find just Reebok and Gap products in the respectivestores.
General store - a rural store that supplies the main needs for thelocal community;
Convenience stores: is essentially found in residential areas. Theyprovide limited amount of merchandise at more than average priceswith a speedy checkout. This store is ideal for emergency and
immediate purchases. Hypermarkets: provides variety and huge volumes of exclusivemerchandise at low margins. The operating cost is comparatively lessthan other retail formats. *Supermarkets: is a self service storeconsisting mainly of grocery and limited products on non food items.They may adopt a Hi-Lo or an EDLP strategy for pricing. The
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supermarkets can be anywhere between 20,000 and 40,000 squarefeet. Example: SPAR supermarket.
Malls: has a range of retail shops at a single outlet. They endowwith products, food and entertainment under a roof.
Category killers or Category Specialist: By supplying wideassortment in a single category for lower prices a retailer can "kill"that category for other retailers. For few categories, such aselectronics, the products are displayed at the centre of the store andsales person will be available to address customer queries and givesuggestions when required. Other retail format stores are forced toreduce the prices if a category specialist retail store is present in thevicinity.
E-tailers: The customer can shop and order through internet andthe merchandise are dropped at the customer's doorstep. Here theretailers use drop shipping technique. They accept the payment forthe product but the customer receives the product directly from themanufacturer or a wholesaler. This format is ideal for customers whodo not want to travel to retail stores and are interested in homeshopping. However it is important for the customer to be wary aboutdefective products and non secure credit card transaction. Example:Amazon, Pennyful and Ebay.
Vending Machines: This is an automated piece of equipmentwherein customers can drop in the money in machine and acquire theproducts.
Some stores take a no frills approach, while others are "mid-range" or"high end", depending on what income level they target.
Other types of retail store include:
Automated Retail stores are self service, robotic kiosks located inairports, malls and grocery stores. The stores accept credit cards andare usually open 24/7. Examples include ZoomShops and Redbox.
Big-box stores encompass larger department, discount, generalmerchandise, and warehouse stores.
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Convenience store - a small store often with extended hours,stocking everyday or roadside items;
General store - a store which sells most goods needed, typically ina rural area;
Retailers can opt for a format as each provides different retail mix to itscustomers based on their customer demographics, lifestyle andpurchase behaviour. A good format will lend a hand to display productswell and entice the target customers to spawn sales.
[edit]Retail pricing
The pricing technique used by most retailers is cost-plus pricing. Thisinvolves adding a markup amount (or percentage) to the retailer's cost.
Another common technique is suggested retail pricing. This simplyinvolves charging the amount suggested by the manufacturer andusually printed on the product by the manufacturer.
In Western countries, retail prices are often called psychologicalprices orodd prices. Often prices are fixed and displayed on signs orlabels. Alternatively, when prices are not clearly displayed, there canbe price discrimination, where the sale price is dependent upon who thecustomer is. For example, a customer may have to pay more if the seller
determines that he or she is willing and/or able to. Another examplewould be the practice of discounting for youths, students, or seniorcitizens..
[edit]Transfer mechanism
There are several ways in which consumers can receive goods from aretailer:
Counter service, where goods are out of reach of buyers and must
be obtained from the seller. This type of retail is common for smallexpensive items (e.g. jewelry) and controlled items like medicine andliquor. It was common before the 1900s in the United States and ismore common in certain countries like India.[which?]
Delivery, where goods are shipped directly to consumer's homes orworkplaces. Mail orderfrom a printed catalog was invented in 1744
http://en.wikipedia.org/wiki/Convenience_storehttp://en.wikipedia.org/wiki/General_storehttp://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=3http://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=3http://en.wikipedia.org/wiki/Pricinghttp://en.wikipedia.org/wiki/Cost-plus_pricinghttp://en.wikipedia.org/wiki/Markup_(business)http://en.wikipedia.org/wiki/Suggested_retail_pricehttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Pricehttp://en.wikipedia.org/wiki/Psychological_pricinghttp://en.wikipedia.org/wiki/Psychological_pricinghttp://en.wikipedia.org/wiki/Price_discriminationhttp://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=4http://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=4http://en.wikipedia.org/wiki/Counter_servicehttp://en.wikipedia.org/wiki/Wikipedia:Avoid_weasel_wordshttp://en.wikipedia.org/wiki/Wikipedia:Avoid_weasel_wordshttp://en.wikipedia.org/wiki/Wikipedia:Avoid_weasel_wordshttp://en.wikipedia.org/wiki/Delivery_(commerce)http://en.wikipedia.org/wiki/Mail_orderhttp://en.wikipedia.org/wiki/Convenience_storehttp://en.wikipedia.org/wiki/General_storehttp://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=3http://en.wikipedia.org/wiki/Pricinghttp://en.wikipedia.org/wiki/Cost-plus_pricinghttp://en.wikipedia.org/wiki/Markup_(business)http://en.wikipedia.org/wiki/Suggested_retail_pricehttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Pricehttp://en.wikipedia.org/wiki/Psychological_pricinghttp://en.wikipedia.org/wiki/Psychological_pricinghttp://en.wikipedia.org/wiki/Price_discriminationhttp://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=4http://en.wikipedia.org/wiki/Counter_servicehttp://en.wikipedia.org/wiki/Wikipedia:Avoid_weasel_wordshttp://en.wikipedia.org/wiki/Delivery_(commerce)http://en.wikipedia.org/wiki/Mail_order -
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and was common in the late 19th and early 20th centuries. Orderingby telephone is now common, either from a catalog,newspaper,television advertisement or a local restaurant menu, forimmediate service (especially forpizza delivery). Direct marketing,
includingtelemarketing and television shopping channels, are alsoused to generate telephone orders. started gaining significant marketshare in developed countries in the 2000s.
Door-to-doorsales, where the salesperson sometimes travels withthe goods for sale.
Self-service, where goods may be handled and examined prior topurchase
[edit]Second hand retail
See also: Charity shop
Some shops sell second-hand goods. In the case of a nonprofit shop,the public donates goods to the shop to be sold. In give-awayshopsgoods can be taken for free.
Another form is the pawnshop, in which goods are sold that were usedas collateral for loans. There are also "consignment" shops, which arewhere a person can place an item in a store and if it sells, the person
gives the shop owner a percentage of the sale price. The advantage ofselling an item this way is that the established shop gives the itemexposure to more potential buyers.
ChallengesTo become a truly flourishing industry, retailing needs tocross the following hurdles:[18]
Automatic approval is not allowed for foreign investment in retail.Regulations restricting real estate purchases, and cumbersome locallaws. Taxation, which favours small retail businesses. Absence ofdeveloped supply chain and integrated IT management. Lack of trainedwork force. Low skill level for retailing management. Lack of RetailingCourses and study options Intrinsic complexity of retailing rapid pricechanges, constant threat of product obsolescence and low margins
[edit]Sales techniques
http://en.wikipedia.org/wiki/Telephonehttp://en.wikipedia.org/wiki/Television_advertisementhttp://en.wikipedia.org/wiki/Menuhttp://en.wikipedia.org/wiki/Pizza_deliveryhttp://en.wikipedia.org/wiki/Direct_marketinghttp://en.wikipedia.org/wiki/Telemarketinghttp://en.wikipedia.org/wiki/Shopping_channelhttp://en.wikipedia.org/wiki/Door-to-doorhttp://en.wikipedia.org/wiki/Self_servicehttp://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=5http://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=5http://en.wikipedia.org/wiki/Charity_shophttp://en.wikipedia.org/wiki/Non-profit_organizationhttp://en.wikipedia.org/wiki/Give-away_shophttp://en.wikipedia.org/wiki/Give-away_shophttp://en.wikipedia.org/wiki/Pawnbrokerhttp://en.wikipedia.org/wiki/Consignmenthttp://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=6http://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=6http://en.wikipedia.org/wiki/Telephonehttp://en.wikipedia.org/wiki/Television_advertisementhttp://en.wikipedia.org/wiki/Menuhttp://en.wikipedia.org/wiki/Pizza_deliveryhttp://en.wikipedia.org/wiki/Direct_marketinghttp://en.wikipedia.org/wiki/Telemarketinghttp://en.wikipedia.org/wiki/Shopping_channelhttp://en.wikipedia.org/wiki/Door-to-doorhttp://en.wikipedia.org/wiki/Self_servicehttp://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=5http://en.wikipedia.org/wiki/Charity_shophttp://en.wikipedia.org/wiki/Non-profit_organizationhttp://en.wikipedia.org/wiki/Give-away_shophttp://en.wikipedia.org/wiki/Give-away_shophttp://en.wikipedia.org/wiki/Pawnbrokerhttp://en.wikipedia.org/wiki/Consignmenthttp://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=6 -
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Behind the scenes at retail, there is another factor at work. Corporationsand independent store owners alike are always trying to get the edge ontheir competitors. One way to do this is to hire a merchandising solutionscompany to design custom store displays that will attract more
customers in a certain demographic. The nation's largest retailers spendmillions every year on in-store marketing programs that correspond toseasonal and promotional changes. As products change, so will a retaillandscape. Retailers can also use facing techniques to create the look ofa perfectly stocked store, even when it is not.
A destination store is one that customers will initiate a trip specificallyto visit, sometimes over a large area. These stores are often used to"anchor" a shopping mall or plaza, generating foot traffic, which is
capitalized upon by smaller retailers.[edit]Customer service
Customer service is the "sum of acts and elements that allow consumersto receive what they need or desire from your retail establishment." It isimportant for a sales associate to greet the customer and make himselfavailable to help the customer find whatever he needs. When acustomer enters the store, it is important that the sales associate doeseverything in his power to make the customer feel welcomed, important,
and make sure he leave the store satisfied. Giving the customer full,undivided attention and helping him find what he is looking for willcontribute to the customer's satisfaction.[3]
[edit]Retail Sales
US Retail Sales 19922010
http://en.wikipedia.org/wiki/Merchandisinghttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Facing_(retail)http://en.wikipedia.org/wiki/Anchor_storehttp://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=7http://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=7http://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Retail#cite_note-2http://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=8http://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=8http://en.wikipedia.org/wiki/File:US_Retail_Sales.pnghttp://en.wikipedia.org/wiki/File:US_Retail_Sales.pnghttp://en.wikipedia.org/wiki/Merchandisinghttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Facing_(retail)http://en.wikipedia.org/wiki/Anchor_storehttp://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=7http://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Retail#cite_note-2http://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=8 -
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The Retail Sales report is published every month. It is a measureofconsumer spending, an important indicator of the US GDP. Retailfirms provide data on the dollar value of their retail sales and inventories.A sample of 12,000 firms is included in the final survey and 5,000 in the
advanced one. The advanced estimated data is based on a subsamplefrom the US CB complete retail &food services sample.[4]
It has been published by the US Census Bureau since 1951.
[edit]Consolidation
Among retailers and retails chains a lot of consolidation has appearedover the last couple of decades. Between 1988 and 2010, worldwide40'788 mergers & acquisitions with a total known value of 2'255 bil. USD
have been announced.[5]
The largest transactions with involvement ofretailers in/from the United States have been: the acquisitionofAlbertson's Inc. for 17 bil. USD in 2006,[6] the merger betweenFederated Department Stores Inc with May Department Stores valued at16.5 bil. USD in 2005[7] - now Macy's, and the merger between KmartHolding Corp and Sears Roebuck & Co with a value of 10.9 bil. USD in2004.[8]
[edit]Bibliography
Krafft, Manfred; Mantrala, Murali K. (eds.) (2006). Retailing in the21st century: current and future trends. New York: SpringerVerlag.ISBN3540283994.
[edit]
Q. 3 Geo Ad Agency has many corporates as their clients. Due tolack of resources, it is
planning to cut down work and reject certain clients. Further, they
want to establish a
http://en.wikipedia.org/wiki/Consumer_spendinghttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Sampling_(statistics)http://en.wikipedia.org/wiki/Statistical_surveyhttp://en.wikipedia.org/wiki/Food_servicehttp://en.wikipedia.org/wiki/Retail#cite_note-3http://en.wikipedia.org/wiki/US_Census_Bureauhttp://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=9http://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=9http://en.wikipedia.org/wiki/Mergers_and_acquisitionshttp://en.wikipedia.org/wiki/Retail#cite_note-4http://en.wikipedia.org/wiki/Albertsons_(SuperValu)http://en.wikipedia.org/wiki/Retail#cite_note-5http://en.wikipedia.org/wiki/The_May_Department_Stores_Companyhttp://en.wikipedia.org/wiki/Retail#cite_note-6http://en.wikipedia.org/wiki/Macy's,_Inc.http://en.wikipedia.org/wiki/Kmarthttp://en.wikipedia.org/wiki/Kmarthttp://en.wikipedia.org/wiki/Searshttp://en.wikipedia.org/wiki/Retail#cite_note-7http://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=10http://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=10http://en.wikipedia.org/wiki/International_Standard_Book_Numberhttp://en.wikipedia.org/wiki/Special:BookSources/3540283994http://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=11http://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=11http://en.wikipedia.org/wiki/Consumer_spendinghttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Sampling_(statistics)http://en.wikipedia.org/wiki/Statistical_surveyhttp://en.wikipedia.org/wiki/Food_servicehttp://en.wikipedia.org/wiki/Retail#cite_note-3http://en.wikipedia.org/wiki/US_Census_Bureauhttp://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=9http://en.wikipedia.org/wiki/Mergers_and_acquisitionshttp://en.wikipedia.org/wiki/Retail#cite_note-4http://en.wikipedia.org/wiki/Albertsons_(SuperValu)http://en.wikipedia.org/wiki/Retail#cite_note-5http://en.wikipedia.org/wiki/The_May_Department_Stores_Companyhttp://en.wikipedia.org/wiki/Retail#cite_note-6http://en.wikipedia.org/wiki/Macy's,_Inc.http://en.wikipedia.org/wiki/Kmarthttp://en.wikipedia.org/wiki/Kmarthttp://en.wikipedia.org/wiki/Searshttp://en.wikipedia.org/wiki/Retail#cite_note-7http://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=10http://en.wikipedia.org/wiki/International_Standard_Book_Numberhttp://en.wikipedia.org/wiki/Special:BookSources/3540283994http://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=11 -
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Evaluator It becomes easy for the training evaluator to measure the
progress of the trainees because the objectives define the expected
performance of trainees. Training objective is an important to tool to
judge the performance of participants.
Q.5 Management of Sai Systems Pvt. Ltd. has decided to
enter international marketing
scenario. What methods are applicable to the company to
enter international markets
and what should be the approach? [10 marks]
Q.6 a) Give a note on Product mix pricing strategies. [5marks].
Ans) Product Mix Pricing Strategies
1. Product Line pricing: Strategy of setting the price for entire product line. Marketer
differentiates the price according to the range of products, i.e. suppose the company is
having three products in low, middle and high end segment and prices the three products
say at Rs 10 Rs 20 and Rs 30 respectively.
In the above example of Nokia mobile phones Nokia 1110 is priced @ Rs 1349, Nokia
7610 priced @ Rs 6249 and Nokia E90 priced @ Rs 34599. All the three products cater
to the different segments low, middle and high income group respectively. The three
levels of differentiation create three price points in the mind of consumer. The task of
marketer is to establish the perceived quality among the three segments. If the customers
do not find much difference between the three brands, he/she may opt for low end
products.
2. Optional Product pricing: this strategy is used to set the price of optional or
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Ans:
Brand Name
A name, term, design, symbol, or any other feature that identifies one sellers good or
service as distinct from those of other sellers.
The legal term for brand is trademark. A brand may identify one item, a family of items,
or all items of that seller. If used for the firm as a whole, the preferred term is trade name
Brand name: Axe
Axe was launched in France in 1983 by Unilever. It was inspired by another of Unilever's
brands, Impulse.
Unilever were keen to capitalize on Axe's French success and the rest of Europe from
1985 onwards, later introducing the other products in the range. Unilever were unable to
use the name Axe in the United Kingdom and Ireland due to trademark problems so it
was launched as Lynx
Although Axe's lead product is the fragranced aerosol deodorant body spray, other
formats of the brand exist. Within underarm care the following are available: deodorant
aerosol body spray, deodorant stick, deodorant roll-on, anti-perspirant aerosol spray
(called Axe Dry), and anti-perspirant stick (also called Axe Dry).
The attribute of the brand that customer associates with his/ her belief. A person may
associate the brand for power, strength or protectiveness. For example, a customer mayassociate Axe brand not just for perfumes but also any accessory associated with
perfumes such as Shampoos etc. So, for him, Axe represents perfume.
Brand Equity
Brand equity is set of assets linked to a brands name and symbol that adds value to the
product or service and/or that firms customer.
Components of brand equity:
1. Brand loyalty: From its launch (Axe), the yearly fragrance variant has played a key
part in the success of the brand by offering something new each year.
2. Brand awareness: The type of fragrance (Axe) variants have evolved over time. From
1983 until about 1989, the variant names were descriptions of the fragrances and included
Musk, Spice, Amber, Marine, and Oriental.
3. Perceived quality
4. Brand associations: Axe also launches limited edition variants from time to time that
may be on sale for a few months or over a year.
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Eg:
5.b)Brand provides the image to the product. Brand should be careful inselecting a proper
name for the brand for eg:of the watches.
Brand Name: Titan
There are six suggestions from Philip Kotler to create a successful brand name. They are
1. It should suggest something about the product benefits and qualities; e.g. Titan
2. It should be easy to pronounce, recognize, and remember
3. The brand name should be distinctive
4. It should be extendable
5. The name should be easily translated into a foreign language
6. It should be capable of registration and legal protection e.g. Titan is a registered brand
and other brands cannot compete with it using any similar sounding name.
Brand managers have four options of sponsoring the brand. They are
1. Manufacturer brand
2. Private brand
3. Licensing
4. Co- branding
..END>
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