elements of marketing management project

of Business Studies Project (Elements of Marketing Management): Class XII

Smart Skills Sanskriti School

OPTION 4: ELEMENTS OF MARKETING MANAGEMENT

BUSINESS STUDIES

PROJECT:

(TITLE OF PROJECT)

NAME:

SCHOOL:

YEAR:

ROLL NO:



Certificate of Authenticity

This is to certify that_________________________________________________

bearing Roll Number_______________________________ is a student of

Class XII of Sanskriti School.

She/he has successfully completed her/his project under my

guidance and supervision towards the fulfillment of the

practical examination in Business Studies conducted by the

Central Board of Secondary Education for the academic year

2014-15.

Date of Submission: Friday, 12th

of December, 2014

Name of Subject Teacher:

Teacher’s Signature:

School Stamp:



PREFACE

&

INDEX:



1. Name of Project:

Element of Marketing Mix

2. Problem Statement / Objective of Project:

The objective of the project is to develop a detailed marketing plan for

introducing _______________________ and covering the aspects of

Product, Price, Place and Promotion.



INDEX:

S.NO PARTICULARS PAGE NO

1. Acknowledgements

2. Preface

3. Introduction

4. Planning And Activities Done During The

Project(If Any)

5. Observations And Findings

6. Conclusions

7. Learning From The Project

8. Appendix

9. Teacher’s Observations



Acknowledgements



Acknowledge the following:

your school,

Your subject teacher,

Any person or institution that helped you,

Any places visited and the persons who have helped



Introduction



o Introduce the topic studied.

Give the theory of “Project’ as given in the following page.

Give an introduction of Marketing.

Give details about the 4 P’s of Marketing Mix.



PROJECT METHOD:

HISTORY AND ADVANTAGES OF USING THE PROJECT METHOD

According to traditional historiography, the project idea is a genuine product of the

American Progressive education movement. The idea was thought to have originally

been introduced in 1908 as a new method of teaching agriculture, but educator

William H. Kilpatrick elaborated the concept and popularized it worldwide in his

famous article, "The Project Method" (1918). More recently, Michael Knoll has traced

the project method to architectural education in sixteenth-century Italy and to

engineering education in eighteenth-century France. This illustrates that the project

of the architect–like the experiment of the scientist, the sandbox exercise of the staff

officer, and the case study of the jurist–originated in the professionalization of an

occupation.

The project method was first introduced into colleges and schools when graduating

students had to apply on their own the skills and knowledge they had learned in the

course of their studies to problems they had to solve as practicians of their trade.

There are two basic approaches for implementing the project method. According to

the historically older approach, the students take two steps: initially, they are taught

in a systematic course of study certain skills and facts, then they apply these skills

and knowledge, creatively and self-directed to suitable projects. According to the

second approach, the instruction by the teacher does not precede the project but is

integrated in it. In other words the students first choose the project, then they discuss

what they need to know for solving the problem and learn the required techniques

and concepts. Finally they execute the chosen project by themselves. In both

approaches, time for reflection should be provided during all phases of project

learning, giving students the opportunity to evaluate their progress. Many teachers–

especially vocational and industrial arts educators–use a series of small-scale projects

to help students develop continuously increasing competence in practical problem

solving.

The development of the term "project," within its broader conceptual and historical

contexts, extends its customary interpretation. As a result, traditional historiography

should be modified in the following three respects:



1. The "project" is a concept dating from the 17th and 18th centuries, belonging

in the same category as the "experiment" of the natural scientist, the "case

study" of the jurist, and the "sand-table exercise" of the staff officer. Like the

experiment, the case study, and the sand-table exercise, the project method

has its origin in the professionalization of an occupation. It was introduced in

the curriculum so that students could learn at school to work independently

and combine theory with practice. In contrast to experiment, case study, and

sand-table exercises, the project method is not a matter of empirical,

hermeneutical, or strategic studies, but of "construction" (i.e., designing a

house, building a playground, or producing a machine).

2. The two basic models of the project method still used today were already

developed in the 19th century. According to the older model (e.g.,

Woodward), students first learn, in a course of instruction, the skills and

knowledge that they then apply independently and creatively in the practical

project. According to the more recent model (e.g., Richards), the project is

moved from the end of the unit to the center of teaching, in accordance with

the fundamental idea of the new psychology that "natural wholes" must be

the subject of learning if valuable interests and insights are to be developed.

Here, the course of instruction does not precede the project, but is integrated

into it.

3. At the beginning of the 20th century, a movement arose among American

progressive educators (e.g., Kilpatrick) that attempted to replace (a) the

traditional narrow definition of the project with a new, broad one, and (b)

"constructive" activity with "purposeful" action as the crucial feature of the

project method. This new definition was unable to gain ascendancy in the

United States, but in other countries it was accepted as an innovation and a

truly democratic achievement, with the paradoxical result that in Europe

today the broad "American" concept predominates, while in America the

narrow "European" approach plays the leading role.

The project method is generally considered a means by which students can (a)

develop independence and responsibility, and (b) practice social and democratic

modes of behavior. It is an educational enterprise in which children solve a practical

problem over a period of several days or weeks. It may involve building a rocket,

http://scholar.lib.vt.edu/ejournals/JITE/v34n3/Knoll.html#Woodward



designing a playground, or publishing a class newspaper. The projects may be

suggested by the teacher, but they are planned and executed as far as possible by the

students themselves, individually or in groups. Project work focuses on applying,

not imparting, specific knowledge or skills, and on improving student involvement

and motivation in order to foster independent thinking, self-confidence, and social

responsibility.



MARKETING MANAGEMENT

Marketing management is a business discipline which focuses on the practical

application of marketing techniques and the management of a firm's marketing

resources and activities. Globalization has led firms to market beyond the borders of

their home countries, making international marketing highly significant and an

integral part of a firm's marketing strategy. Marketing managers are often

responsible for influencing the level, timing, and composition of customer demand

accepted definition of the term. In part, this is because the role of a marketing

manager can vary significantly based on a business's size, corporate culture,

and industry context. For example, in a large consumer products company, the

marketing manager may act as the overall general manager of his or her assigned

product. To create an effective, cost-efficient marketing management strategy, firms

must possess a detailed, objective understanding of their own business and

the market in which they operate. What is marketing?

The definition that many marketers learn as they start out in the industry is:

Putting the right product in the right place, at the right price, at the right time.

It's simple! You just need to create a product that a particular group of people want,

put it on sale some place that those same people visit regularly, and price it at a level

which matches the value they feel they get out of it; and do all that at a time they

want to buy. Then you've got it made!

The marketing mix and the 4 Ps of marketing are often used as synonyms for each

other. In fact, they are not necessarily the same thing.

What can be marketed:

Physical Products : DVD player, Motor cycle, ipods, Cell phone,

Footwear,Television, Refrigerator.

Services : Insurance, Health Care, Business Process Outsourcing,Security,

Easy Bill service, Financial Services(Investment),Computer Education, Online

Trading.

Ideas : Polio Vaccination, Helpage, Family Planning, Donation of Blood (Red

cross), Donation of money on Flag Day (National Foundation for Communal

Harmony).

Persons : For Election of Candidates for Certain Posts.

http://en.wikipedia.org/wiki/Marketing

http://en.wikipedia.org/wiki/Globalization

http://en.wikipedia.org/wiki/International_marketing

http://en.wikipedia.org/wiki/Corporate_culture

http://en.wikipedia.org/wiki/Industry

http://en.wikipedia.org/wiki/General_manager

http://en.wikipedia.org/wiki/Objectivity_(philosophy)

http://en.wikipedia.org/wiki/Market



Place : ‘Visit Agra – ‘City of Love’, ‘Udaipur – ‘The City of Lakes’,‘Mysore –

The City of Gardens’, ‘When Orisa celebrates,Eleven the God Join In’.

Experience : Customised Experiences as Dinner with a cricketer (say Dhoni);

Lunch with a celebrity (say Bill Gates or Aishwarya Roy) or experience of

Baloon Riding, mountaineering, etc.

Properties : Intangible rights of ownership of real estate in financial property

(Shares, Debentures).

Events : Sports events (say Olympics, Cricket series), diwali mela, fashion

show, music concert, film festival, elephant race (Kerala Tourism).

Information : Production packaging and distribution of information by

organisations such as by universities, research organisation, providing

information as market information (marketing research agencies), technology

information.

Organisations : For boosting their public image organisations such as

Hindustan Lever, Ranbaxy, Dabur, Proctor and Gamble,communicate with

people. Example, Phillips says, Let’s make Things Better’.

Marketing Mix

There are a large number of factors that affect marketing decisions. They can be

classified as:

Non-controllable factors and Controllable factors:

To be successful, a firm needs to take sound decisions wrt controllable factors while

keeping the environmental factors in mind.

To develop marketing tools, marketing managers use

the abovementioned controllable factors and the set of marketing tools that a firm

uses to pursue its marketing objectives in the target market is described as Marketing

Mix.

Success of a

market offer will depend upon how well these ingredients are mixed to create

superior value for customers and simultaneously achieve their sales and profit

objective. Thus, an ideal marketing mix would need:



Producing satisfying products

Offered to buyers at a reasonable

price

Conveniently available

About which communication is

offered.

Marketing mix" is a general phrase used to describe the different kinds of choices

organizations have to make in the whole process of bringing a product or service to

market. The 4Ps is one way – probably the best-known way – of defining the

marketing mix, and was first expressed in 1960 by E J McCarthy. The 4Ps are:

Product (or Service).

Place.

Price.

Promotion.

A good way to understand the 4Ps is by the questions that you need to ask to define

your marketing mix. Here are some questions that will help you understand and

define each of the four elements:

Product/Service

Product mix relates to decisions regarding planning, developing and

producing the right type of products and services for the consumers.

Product is the tangible/intangible product, which is

goods/services/anything of value that is offered to the market for

exchange.It relates to not only the physical product but also the benefits

offered by the product from the customers’ point of view.

It also includes the extended product- that is, what is offered to the customers

by way of after sales services, handling complaints etc. this decision is more

important for durable products.

Important decisions in this area include deciding about the features and

quality of the product, its packaging, labeling, trademark and branding of

products.

o What does the customer want from the product/service? What

needs does it satisfy?

o What features does it have to meet these needs?



Are there any features you've missed out?

Are you including costly features that the customer

won't actually use?

o How and where will the customer use it?

o What does it look like? How will customers experience it?

o What size(s), color(s), and so on, should it be?

o What is it to be called?

o How is it branded?

o How is it differentiated versus your competitors?

o What is the most it can cost to provide, and still be sold

sufficiently profitably? (See also Price, below).

Place Mix:

Set of decisions that need to be taken in order to make the product available

for purchase and consumption of the target market at the right place, in the

right time and at the right price.

It includes all the activities involved in transferring ownership and physical

possessions of the product o the consumer.

It involves decisions wrt:

o Channels of distribution- selection of intermediaries/dealer to reach the

customers, providing support to the intermediaries etc.

o Physical distribution-managing inventory, storage, warehousing and

transportation of goods from the place where they are produced to the

place where it is required by the buyer.

Where do buyers look for your product or service?

If they look in a store, what kind? A specialist boutique or in a

supermarket, or both? Or online? Or direct, via a catalogue?

How can you access the right distribution channels?

Do you need to use a sales force? Or attend trade fairs? Or

make online submissions? Or send samples to catalogue

companies?

What do you competitors do, and how can you learn from that

and/or differentiate?



Price Mix:

It is a value that a buyer passes on to the seller in lieu of the product or

services provided.

It is a source of revenue for the seller.

Marketer needs to analyze the objectives of setting price and analyze the

factors that determine the price.

Decision also includes pricing methods, pricing strategies, pricing policies,

price changes, discounts to be offered, credit terms etc.

Price is the cost the customers has to bear for the product and so must be set

so that the customers perceive the price to be in lieu with the value of the

product.

What is the value of the product or service to the buyer?

Are there established price points for products or services in this area?

Is the customer price sensitive? Will a small decrease in price gain you

extra market share? Or will a small increase be indiscernible, and so

gain you extra profit margin?

What discounts should be offered to trade customers, or to other

specific segments of your market?

How will your price compare with your competitors?

Promotion Mix:

These are activities undertaken to persuade and motivate people to buy their

products.

It involves communicating the features, attributes, availability, merits etc of

the product to both the customers and the participants in the channels of

distribution in order to achieve sales goals.

Tools used include advertising, sales promotion, personal selling etc.

Where and when can you get across your marketing messages to

your target market?

Will you reach your audience by advertising in the press, or on TV,

or radio, or on billboards? By using direct marketing mailshot?

Through PR? On the Internet?



When is the best time to promote? Is there seasonality in the market?

Are there any wider environmental issues that suggest or dictate the

timing of your market launch, or the timing of subsequent

promotions?

How do your competitors do their promotions? And how does that

influence your choice of promotional activity?

The 4Ps model is just one of many marketing mix lists that have been developed over

the years. And, whilst the questions we have listed above are key, they are just a

subset of the detailed probing that may be required to optimize your marketing mix.



Planning and

Activities Done

During the

Project



o You need to give details here about what were the activities that you

undertook to do your project. Such as

How you decided on the topic

Did you take interviews etc

How the analysis was done.

o Give them in a sequence.



Observations

&

Findings



You need to analyze the responses and derive conclusions that will be the

data for future decisions.

This may be done question wise

For each question,

o Give the definition of the topic in question in one para.

o In the next para, give your observations about how the organization

that you are studying or will start has dealt with that aspect



Product



Product is actually a complex, multidimensional concept. It is defined broadly

enough to include services, programs, and attitudes and includes whatever you are

offering the target market in an effort to meet their needs. It involves all tangible and

intangible aspects of the good or service you offer your target market. These are

things which have value and are balanced against the value you expect to receive

from the target consumer. Product in the NPS world would probably be interpreted

as programs, activities, interpretation, as well as services. A product is seen as an

item that satisfies what a consumer demands. It is a tangible good or an intangible

service. Tangible products are those that have an independent physical existence.

Typical examples of mass-produced, tangible objects are the motor car and the

disposable razor. A less obvious but ubiquitous mass-produced service is a computer

operating system.

Every product is subject to a life-cycle including a growth phase followed by a

maturity phase and finally an eventual period of decline as sales falls. Marketers

must do careful research on how long the life cycle of the product they are marketing

is likely to be and focus their attention on different challenges that arise as the

product move.

The marketer must also consider the product mix. Marketers can expand the current

product mix by increasing a certain product line's depth or by increasing the number

of product lines. Marketers should consider how to position the product, how to

exploit the brand, how to exploit the company's resources and how to configure the

product mix so that each product complements the other. The marketer must also

consider product development strategies.

Product Mix: Every organization has a product mix that is made up of product

lines. Product lines contain product items. Each product item is a product or service as well

as the brand,package, and services associated with it. There are six components as

follows:

Services: Interpreters in visitor centers are providing an information service.

Package: In the product world this is the container. In the NPS world this

could be the surroundings in which a program is delivered. The atmosphere

of a visitor center might be considered the package in which the visitor center

experience is delivered.

http://en.wikipedia.org/wiki/Motor_car

http://en.wikipedia.org/wiki/Razor

http://en.wikipedia.org/wiki/Computer_operating_system



http://en.wikipedia.org/wiki/Product_life-cycle_theory

http://en.wikipedia.org/wiki/Product_lining



Brand: The brand in our case is the National Park Service and all of the image

attributes that are associated with the NPS.

Product Item: A distinct unit within a product line that is distinguishable by

size, price, appearance, function, or some other attribute. A guided hike along

a particular trail might be a product item.

Product Line: A group of products within a product mix that are closely

related, either because they meet the same need, function in a similar manner,

or share some other characteristic. Interpretation might be considered a

product line.

Product Mix (assortment): the set of all product lines and items that an

organization offers its target market(s). Everything the NPS offers target

market(s) constitutes its product mix.

Decision areas related to product mix include:

1. The product combination or range offered to the buyer

2. USP of the product

3. Technology used for manufacturing

4. Brand ,logo and tagline

5. Lable

6. Packaging

(After giving an introduction for product, analyze each question one by one. each)



Selection of

this

product/servic

e



Question 1: Why have I selected this product/service?

State whether it is an industrial or commercial

product

Give reasons why you have selected this product



Competitive

Brands



Question 2: Find out ‘5’ competitive brands that exist in

the market.

List out 5 competitors in the National or

international markets.

Give pictures of their logo, taglines etc.



Permission and

Licenses



Question 3: What permission and licenses would be

required to make the product?

Why are permissions and licenses required as per

law?

If it’s a large scale organisation, formed as a

company, the following laws will be applicable:

o Companies Act, 1956

o Employees’ compensation act

o Factories act

Give any other permissions and licenses that are

applicable specifically to your product.



Competitors

Unique Selling

Proposition.



[U.S.P.]

Question 4: What are your competitors Unique Selling

Proposition? [U.S.P.]?

What is USP?

For all your 5 competitors, list out their USPs.



Product Range



Question 5: Does your product have any range give

details?

Define product range and give examples of

product range flowcharts from the net.

Give the product range you propose to have for

your product.



Name of the

Product

Question 6: What is the name of your product?

Give the name of the product along with the reason

for the choice of the name.



Features of the

Product

Question 7: Enlist its features.



Give the basic features of your product in points

Also give specific features of your product as per the

product range you have decided on.



Label

Question 8: Draw the ‘Label’ of your product.



Define the word label and give the functions of a

label and the information that a label should

provide.

Draw a detailed label and paste it on the blank left

side and enumerate the information provided in

your label on the right ruled side of your file.



Logo



Question 9: Draw a logo for your product.

What is a logo and why do companies need logos?

Draw a logo or print out a logo for your product

and give reason for choice of design and color

scheme.



Tag line



Question 10: Draft a tag line.

What is a tagline and why do companies use a

tagline?

Give the tagline for your product giving reasons

for selecting the tagline and what it represents.



Packaging



Question 11: How will your product be packed?

What is packaging and give its functions and the 3

levels of packaging.

Explain the 3 levels of packaging that will be used

by you. Either draw of make a prototype of the

package that will be used by you.



PLACE



Place Mix Refers to providing the product at a place which is convenient for

consumers to access. Various strategies such as intensive distribution,

selective distribution, exclusive distribution and franchising can be used by

the marketer to complement the other aspects of the marketing mix.

A set of decisions needs to be taken to make the product available to

customers for purchase and consumption.

The marketer needs to make sure that the product is available at the right

quantity, at the right time and at the right place.

. It requires development of:

o Channels of distribution

o Physical distribution of products.

a) Channels Of Distribution:

Path taken by the good in their movement from the place of production to the

place of consumption.

Includes a series of firms/individuals/people/institutions/merchants and

functionaries who form a network which helps in the transfer of title to a

product from the producer to the end consumer.

They help to overcome time, place and possession gaps that separate the

goods and services from those who need/want them from those who want

them.

Thus, intermediaries in the channel of distribution help to:

Assist in transferring title to goods from the producers to consumers.

Bring economy of effort

Cover large geographical area and bring efficiency in distribution

Transportation, storage and negotiation

Make various items available at one place

Serves as an authentic source of market information.

http://en.wikipedia.org/wiki/Distribution_(business)#Type_of_marketing_channel

http://en.wikipedia.org/wiki/Franchising



b) Physical Distribution

o Involves physical handling of and movement of goods from the place of

production to the place of consumption.

o Creates time and place utility

o Involves decisions wrt inventory, storage and warehousing, transportation

and order processing.



Channels of

Distribution



Question 12: Which channel of distribution are you going to

use? Give reasons for selection?

What are channels if distribution? What functions are

performed by them?

Give the channel of distribution selected along with

the number of intermediaries in the channel selected.

Give the factors that you have considered while

selecting the channels of distribution.



Warehousing



Question 13: Decisions related to warehousing, state reasons.

Define warehousing along with the functions

performed by warehouses.

State the type of warehouse that you will select along

with reasons for selecting the same.



Transportation



Question 14: What means of transport you will use and

why?

What are the modes of transportation

available?

Which mode of transportation will you select

and why?



PRICE



Price refers to the amount a customer pays for the product. The price is very

important as it determines the company's profit and hence, survival. Adjusting the

price has a profound impact on the marketing strategy, and depending on the price

elasticity of the product, often it will affect the demand and sales as well. The

marketer should set a price that complements the other elements of the marketing

mix.

When setting a price, the marketer must be aware of the customer perceived

value for the product. Three basic pricing strategies are: market skimming pricing,

marketpenetration pricing and neutral pricing. The 'reference value' (where the

consumer refers to the prices of competing products) and the 'differential value' (the

consumer's view of this product's attributes versus the attributes of other products)

must be taken into account. A business can use a variety of pricing strategies when

selling a product or service. The Price can be set to maximise profitability for each

unit sold or from the market overall. It can be used to defend an existing market

from new entrants, to increase market share within a market or to enter a new

market. Businesses may benefit from lowering or raising prices, depending on the

needs and behaviors of customers and clients in the particular market. Finding the

right pricing strategy is an important element in running a successful business

Premium Pricing

Premium pricing strategy establishes a price higher than the competitors. It's a

strategy that can be effectively used when there is something unique about the

product or when the product is first to market and the business has a distinct

competitive advantage. Premium pricing can be a good strategy for companies

entering the market with a new market and hoping to maximize revenue during the

early stages of the product life cycle.

Penetration Pricing

A penetration pricing strategy is designed to capture market share by entering the

market with a low price relative to the competition to attract buyers. The idea is that

the business will be able to raise awareness and get people to try the product. Even

though penetration pricing may initially create a loss for the company, the hope is

that it will help to generate word-of-mouth and create awareness amid a crowded

market category.

http://en.wikipedia.org/wiki/Price_elasticity



http://en.wikipedia.org/wiki/Demand

http://en.wikipedia.org/wiki/Customer_perceived_value



http://en.wikipedia.org/wiki/Market_skimming

http://en.wikipedia.org/wiki/Penetration_pricing

http://en.wikipedia.org/wiki/Product_(business)

http://en.wikipedia.org/wiki/Service_(economics)



Price Skimming

Businesses that have a significant competitive advantage can enter the market with a

price skimming strategy designed to gain maximum revenue advantage before other

competitors begin offering similar products or product alternatives.

Psychological Pricing

Psychological pricing strategy is commonly used by marketers in the prices they

establish for their products. For instance, $99 is psychologically "less" in the minds of

consumers than $100. It's a minor distinction that can make a big difference.

Pricing is one of the most important elements of the marketing mix, as it is the only

mix, which generates a turnover for the organisation. The remaining 3p’s are the

variable cost for the organisation. It costs to produce and design a product, it costs to

distribute a product and costs to promote it. Price must support these elements of the

mix. Pricing is difficult and must reflect supply and demand relationship. Pricing a

product too high or too low could mean a loss of sales for the organisation.

Pricing Factors

Pricing should take into account the following factors into account:

1. Fixed and variable costs.

2. Competition

3. Company objectives

4. Proposed positioning strategies.

5. Target group and willingness to pay

An organisation can adopt a number of pricing strategies, the pricing strategy will

usually be based on corporate objectives.



Types of Pricing Strategy

Pricing

Strategy Definition Example

Penetration

Pricing

Here the organisation sets a low price to increase sales

and market share. Once market share has been

captured the firm may well then increase their price.

A television satellite company sets a low price to get

subscribers then increases the price as their customer base

increases.

Skimming

Pricing

The organisation sets an initial high price and then

slowly lowers the price to make the product available

to a wider market. The objective is to skim profits of the

market layer by layer.

A games console company reduces the price of their console

over 5 years, charging a premium at launch and lowest price

near the end of its life cycle.

Competition

Pricing

Setting a price in comparison with competitors. Really a

firm has three options and these are to price lower,

price the same or price higher

Some firms offer a price matching service to match what their

competitors are offering.

Product Line

Pricing

Pricing different products within the same product

range at different price points.

An example would be a DVD manufacturer offering different

DVD recorders with different features at different prices eg A

HD and non HD version.. The greater the features and the

benefit obtained the greater the consumer will pay. This form of

price discrimination assists the company in maximising



turnover and profits.

Bundle Pricing

The organisation bundles a group of products at a

reduced price. Common methods are buy one and get

one free promotions or BOGOF's as they are now

known. Within the UK some firms are now moving into

the realms of buy one get two free can we call this

BOGTF i wonder?

This strategy is very popular with supermarkets who often

offer BOGOF strategies.

Psychological

Pricing

The seller here will consider the psychology of price

and the positioning of price within the market place

The seller will therefore charge 99p instead £1 or $199 instead

of $200. The reason why this methods work, is because buyers

will still say they purchased their product under £200 pounds

or dollars, even thought it was a pound or dollar away. My

favourite pricing strategy.

Premium

Pricing

The price set is high to reflect the exclusiveness of the

product.

An example of products using this strategy would be Harrods,

first class airline services, Porsche etc.

Optional

Pricing

The organisation sells optional extras along with the

product to maximise its turnover. T

This strategy is used commonly within the car industry as i

found out when purchasing my car.

Cost Based

Pricing

The firms takes into account the cost of production and

distribution, they then decide on a mark up which they

If a firm operates in a very volatile industry, where costs are

changing regularly no set price can be set, therefore the firm



would like for profit to come to their final pricing

decision.

will decide on their mark up to confirm their pricing decision.

Cost Plus

Pricing

Here the firm add a percentage to costs as profit margin

to come to their final pricing decisions.

For example it may cost £100 to produce a widget and the firm

add 20% as a profit margin so the selling price would be

£120.00



Decisions

w.r.t Selling

prices and

Profit

Margins



Question 15: What is the selling price of your

competitor’s product?

(i) Selling price to consumer

(ii) Selling price to retailer

(iii) Selling price to wholesaler



Question 16: What is the profit margin in percentage to

the

Manufacturer.

Wholesaler.

Retailer.



Question 17: What is going to be your selling price?

(i) To consumer

(ii) To retailer

(iii) To wholesaler



Question 18: What cost effective techniques will you

follow for your product. What cost effective techniques

will you follow for your promotion plan.



PROMOTION



All of the methods of communication that a marketer may use to provide

information to different parties about the product. Promotion comprises elements

such as:advertising, public relations, sales organisation and sales promotion.

Advertising covers any communication that is paid for, from cinema commercials,

radio and Internet advertisements through print media and billboards. Public

relations is where the communication is not directly paid for and includes press

releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and

events. Word-of-mouth is any apparently informal communication about the

product by ordinary individuals, satisfied customers or people specifically engaged

to create word of mouth momentum. Sales staff often plays an important role in

word of mouth and public relations (see 'product' above). The promotional mix’s

goal is to inform, persuade and remind your customer about your product or service.

The promotional mix uses advertising, which is a paid form of non-personal

presentation. Personal selling is used either by phone or face to face to the prospect,

for example, to address your customers' concerns and answer their questions

directly. Public relations are firms communicating with their customers, employees

and stockholders. It is important that a business have a solid reputation with

customers. For example, one way firms communicate is by sending out newsletters

or press releases. Sales promotion includes inducements with the purpose of

encouraging customers to buy, such as cents off coupons. Merchandising is used in

the store to stimulate sales. Examples include displays, signs and posters.

There are five main aspects of a promotional mix.[1] These are:

Advertising - Presentation and promotion of ideas, goods, or services by an

identified sponsor. Examples: Print ads, radio, television, billboard, direct mail,

brochures and catalogs, signs, in-store displays, posters, motion pictures, Web pages,

banner ads, and emails.

Personal selling - A process of helping and persuading one or more prospects to

purchase a good or service or to act on any idea through the use of an oral

presentation.Examples: Sales presentations, sales meetings, sales training and incentive

programs for intermediary salespeople, samples, and telemarketing. Can be face-to-face

selling or via telephone.

Sales Promotion - Media and non-media marketing communication are

employed for a pre-determined, limited time to increase consumer demand,

http://en.wikipedia.org/wiki/Advertising

http://en.wikipedia.org/wiki/Public_relations

http://en.wikipedia.org/w/index.php?title=Sales_organisation&action=edit&redlink=1

http://en.wikipedia.org/wiki/Sales_promotion

http://en.wikipedia.org/wiki/Word_of_mouth

http://en.wikipedia.org/wiki/Promotional_mix#cite_note-Harrell_Book-1

http://en.wikipedia.org/wiki/Advertising

http://en.wikipedia.org/wiki/Personal_selling

http://en.wikipedia.org/wiki/Sales_Promotion



stimulate market demand or improve product availability. Examples: Coupons,

sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade

shows, trade-ins, and exhibitions.

Public relations - Paid intimate stimulation of supply for a product, service, or

business unit by planting significant news about it or a favorable presentation of

it in the media.Examples: Newspaper and magazine articles/reports, TVs and radio

presentations, charitable contributions, speeches, issue advertising, and seminars.

Direct Marketing is a channel-agnostic form of advertising that allows businesses

and nonprofits to communicate straight to the customer, with advertising

techniques such as mobile messaging, email, interactive consumer websites,

online display ads, fliers, catalog distribution, promotional letters, and outdoor

advertising.

Corporate image Corporate image may also be considered as the sixth aspect of

promotion mix. The image of an organization is a crucial point in marketing. If the

reputation of a company is bad, consumers are less willing to buy a product or use a

service from this company as they would have been, if the company had a good

image. Sponsorship is sometimes added as an seventh aspect.[1]

http://en.wikipedia.org/wiki/Public_relations

http://en.wikipedia.org/wiki/Direct_Marketing

http://en.wikipedia.org/wiki/Corporate_image

http://en.wikipedia.org/wiki/Sponsor_(commercial)

http://en.wikipedia.org/wiki/Promotional_mix#cite_note-Harrell_Book-1



Question 19: List 5 ways of promoting your product.

Give details about all components of promotion mix

that you will use.



Question 20: Any schemes for

The wholesaler

The retailer

The consumer

Give specific Sales Promotion techniques that will be used.



Question 21: What is going to be your ‘U.S.P?



Question 22: Draft a social message for your label.

Very crucial question.

Indentify your target market carefully and choose a social

issue that will be relevant to them

Then draft your social message and try to gauge its

impact.



Conclusion



Summarized suggestions or findings, future scope of study. This must

incorporate:

1. Type of product /service identified and the (consumer/industries) process involve there in.

2. Brand name and the product.

3. Range of the product.

4. Identification mark or logo.

5. Tagline.

6. Labeling and packaging.

7. Price of the product and basis of price fixation.

8. Selected channels of distribution and reasons thereof.

9. Decisions related to transportation and warehousing. State reasons

10. Promotional techniques used and starting reasons for deciding the particular technique.

11. Grading and standardization.

Also, give a summary of your study for the topic studied specifying:

o The relevance of the topic in today’s context



Learning from

the Project



Can be given as:

How you have been able to relate the theory in your syllabus to its practical

application.

Anything else that you feel you have learnt about the real functioning of an

organisation.

Any other skills developed such as such as skills of team work, problem

solving, time management, information collection, processing, analyzing and

synthesizing relevant information to derive meaningful conclusions etc

Also, answer the following:

o How did you initially decide on the topic

o Did you take advice from anyone or refer to any publication? Why?

o Did you feel you needed to rework your strategies?

o If you were to do this activity again, what would you do differently?

of Business Studies Project (Marketing Manahement): Class XII


Appendix



1. Persons/Firms Consulted

2. Books Referred To, Including your Text Book

3. Websites Referred to



Teacher’s

Observation



Marketing Management Project Evaluation Performa

Student’s Name : _________________________________________________

Roll No: : _________________________________________________

Class and section : XII Section ____________________

Teacher’s Assessment:

Marks Obtained Maximum Marks

: 10 Marks

Overall Remarks:

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………..

……………………………. …………………………………… ……………..……………..

Internal Teacher’s External Teacher’s Date

Signature Signature

elements of marketing management project

Documents