marketing domain

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Marketing Management:

1.What is marketing? Explain its core concepts.ans-Marketing is the activity, set of institutions, and processes for creating, communicating,delivering, and exchanging offerings that have value for customers, clients, partners,and society at large.core concepts-:

Needs ants and demands are a part of !asic marketing principles. "hough they

are # simple orlds, they hold a very complex meaning !ehind them along ith a

huge differentiation factor. $n fact, % product can !e differentiated on the !asis of

hether it satisfies a customer&s needs, ants or demands. Each of them is

discussed in detail in this article

Needs -'uman needs are the !asic re(uirements and include food clothing andshelter. Without these humans cannot survive. %n extended part of needs today has

!ecome education and healthcare. )enerally, the products hich fall under

the needs category of products do not re(uire a push. $nstead the customer !uys it

themselves. *ut in today&s tough and competitive orld, so many !rands have

come up ith the same offering satisfying the needs of the customer, that even the

+needs category product has to !e pushed in the customers mind.

Example of needs category products sectors %griculture sector, /eal Estate

0land alays appreciates, 2M3), etc.

Wants Wants are a step ahead of needs and are largely dependent on the needs of

humans themselves. 2or example, you need to take a !ath. *ut i am sure you take

!aths ith the !est soaps. "hus Wants are not mandatory part of life. 4ou 56N"

need a good smelling soap. *ut you ill definitely use it !ecause it is your ant. $n

the a!ove image, the !a!y needs milk !ut it W%N"7 candy

Example of wants category products sectors 'ospitality industry, Electronics,3onsumer 5ura!les etc, 2M3), etc.

Demands 4ou might ant a *MW or a Mercedes for a car. 4ou might ant to go

for a cruise. *ut can you actually !uy a *MW or go on a cruise? 4ou can provided

you have the ability to !uy a *MW or go on a cruise. "hus a step ahead of ants is

demands. When an individual ants something hich is premium, !ut he also has

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the a!ility to !uy it, then these ants are converted to demands. "he !asic

difference !eteen ants and demands is desire. % customer may desire something

!ut he may not !e a!le to fulfill his desire.

Example of demands 3ruises, *MW8s, 9 star hotels etc.

"he needs ants and demands are a very important component of marketing

!ecause they help the marketer decide the products hich he needs to offer in the

market. "hus the flo is like this.

:.What do you mean !y marketing mix?ans-

"he Marketing mix is a set of four decisions hich needs to !e taken !efore

launching any ne product. "hese varia!les are also knon as the 4 P’s of

marketing. "hese four varia!les help the firm in making strategic decisions

necessary for the smooth running of any product organi;ation. "hese varia!les are

1.


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changed over time. 'oever, a change in one of the varia!les may cause a change

in all the other varia!les as ell. "he varia!les are as follos

1 Product "he first thing you need, if you ant to start a !usiness, is a product.

"herefore


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%long ith the a!ove factors, there are also other things hich have to !e taken in

consideration hen deciding on a pricing strategy. 3ompetition can !e the !est

example. 7imilarly, pricing also affects the targeting and positioning of a product.


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e(uity of the product, and the profita!ility might support you in launching even

more products. 'oever, the !udget re(uired for extensive promotions is also

high.


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B Cies !usiness as consumer producing process satGisfying processD Emphasis on innovation on every existing technolGogy and reducing everysphere, on providing !etter costs value to the customer !y adopting a superiortechnology %ll departments of the !usiness integrated manner, the sole purpose !einggeneration of consumer satisfactionF. 3onsumer determine price, price determines cost1@. Marketing vies the customer last link in !usiness as the very purpose of the

!usiness

9. What is !uying !ehavior?

ans-*onsumer +uying +e"avior is the sum total of a consumer&s attitudes, preferences,intentions, and decisions regarding the consumer&s !ehavior in the marketplace hen

purchasing a product or service.6/ "he process !y hich individuals search for, select, purchase, use, and dispose ofgoods and services, in satisfaction of their needs and ants. 7ee also consumerdecision making.

B.What are the maor factors influencing !uying !ehavior?ans-"here are = main types of factors influencing consumer !ehaviorH cultural factors,social factors, personal factors and psychological factors.refer mktg pg =:......

D. What are the stages of !uying decision process?

%ns- "here are five stages of !uying decision processH 1.Need /ecognition, :.$nformation 7earch #.Evaluation of alternatives =.


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1. Need /ecognition - "his stage refers to recogni;ing a need or a ant that has to !esatisfied.

:. $nformation search - "his stage refers to the part of the decision process here inthe consumer searches information from different sources a!out the product heneeds to !uy. % successful information search leaves a !uyer ith possi!lealternatives.

#. Evaluation of %lternatives - $n this stage the consumer evaluates the alternatives hehas come across in the prior stage.

=.


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this strategy as focusing on one segment ena!les them to compete effectivelyagainst larger firms.

• Multi-7egment "argetingH "his approach is used if you need to focus on to

or more ell defined market segments and ant to develop differentstrategies for them. Multi segment targeting offers many !enefits !ut can !ecostly as it involves greater input from management, increased marketresearch and increased promotional strategies.


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• e"aviora segmentation is !ased on varia!les such as usage rate and

patterns, price sensitivity, !rand loyalty, and !enefits sought.

Business Market Segmentation

While many of the consumer market segmentation !ases can !e applied to !usinesses and organi;ations, the different nature of !usiness markets often leadsto segmentation on the folloing !asesH

• &eograp"ic segmentation - !ased on regional varia!les such as customer

concentration, regional industrial groth rate, and internationalmacroeconomic factors.

• *ustomer type - !ased on factors such as the si;e of the organi;ation, its

industry, position in the value chain, etc.

• uyer +e"avior - !ased on factors such as loyalty to suppliers, usage

patterns, and order si;e.

1:.What are the characteristics of effectively segmented market?ans-

EVALUATION

CRITERIA

WHAT IS IT? WHY IS IT IMORTANT?

'omogeneous "his means that the consumersallocated to each segmentshould !e similar in somerelevant ay

"his is the !asis of marksegmentation that tconsumers in each segment asimilar in terms of needs andcharacteristics

'eterogeneous Each segment of consumersshould !e relatively uni(ue, ascompared to the other segmentsthat have !een constructed

"his demonstrates that tconsumers in the overall markhave !een effectively dividinto sets of differing needs

Measura!le 7ome form of data should !eavaila!le to measure the si;e of the market segment

Measurements are veimportant to !e a!le to evaluathe overall attractiveness of easegment

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7u!stantial "he market segment should !elarge enough, in terms of salesand profita!ility, to arrant thefirm8s possi!le attention

Each firm ill have minimure(uirements for the financreturn from their investment inmarket, so it is necessary to on

consider segments that asu!stantial enough to !e interest

%ccessi!le "he market segment should !ereacha!le, particularly in termsof distri!ution andcommunication

Each segment needs to !e a!to !e reached and communicatith on an efficient !asis

%ctiona!lepractical "he firm needs to !e a!le toimplement a distinctivemarketing mix for each marketsegment

"he range of segmenidentified generally need to defined for the capa!ilities aresources of the organi;ation, very speciali;ed segments mnot !e appropriate

/esponsive Each market segment shouldrespond !etter to a distinct

marketing mix, rather than ageneric offering

"he key outcome of the 7 process is to develop a uni(

marketing mix for a specifitarget market, if the segmeill not !e more responsive todistinct offering, then tsegment can pro!a!ly com!ined ith another simisegment

1#.'o or on hat !asis is the profile of the target customer prepared?ans-$t may !e prepared on the folloing criteriaH

a."ype of customerH hether individual or group.

!. $ncome H hether he !elongs to the upper class, upper middle class, loer middle


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class or loer class.

c. Media exposure H print media like nespapers, maga;ines, ournals or audio visuallike "C, radio, street hoardings etc.d.6ccupation H hether he is into service or !usiness.

1=.What are the different positioning strategies used !y companies?ans-


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"hey charge more, partly to cover higher costs and partly to let the consumers !elieve that the product is, certainly of higher (uality.

0# se or %pplication Aets understand this iththe help of an example like Nescafe 3offee for many years positioned it self as ainter product and advertised mainly in inter !ut the introduction of cold coffeehas developed a positioning strategy for the summer months also. *asically thistype of positioning-!y-use represents a second or third position for the !rand, suchtype of positioning is done deli!erately to expand the !rand8s market. $f you areintroducing ne uses of the product that ill automatically expand the !rand8smarket.

0= sing and populari;ing trademarks generallyfollo this type of positioning.

0D


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some cases, reference competitor0s can !e the dominant aspect of the positioningstrategies of the firm, the firm either uses the same of similar positioning strategiesas used !y the competitors or the advertiser uses a ne strategy taking thecompetitors8 strategy as the !ase. % good example of this ould !e 3olgate and


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Intro!u"tion Stage

$n the introduction stage, the firm seeks to !uild product aareness and develop amarket for the product. "he impact on the marketing mix is as follosH

• Product !randing and (uality level is esta!lished, and intellectual property

protection such as patents and trademarks are o!tained.

• Pricing may !e lo penetration pricing to !uild market share rapidly, or

high skim pricing to recover development costs.

• Distri+ution is selective until consumers sho acceptance of the product.

• Promotion is aimed at innovators and early adopters. Marketing

communications seeks to !uild product aareness and to educate potential

consumers a!out the product.

#ro$t% Stage

$n the groth stage, the firm seeks to !uild !rand preference and increase marketshare.

• Product (uality is maintained and additional features and support services

may !e added.

• Pricing is maintained as the firm enoys increasing demand ith little

competition.

• Distri+ution channels are added as demand increases and customers accept

the product.

• Promotion is aimed at a !roader audience.

Maturit& Stage

%t maturity, the strong groth in sales diminishes. 3ompetition may appear ithsimilar products. "he primary o!ective at this point is to defend market sharehile maximi;ing profit.

• Product features may !e enhanced to differentiate the product from that of

competitors.

• Pricing may !e loer !ecause of the ne competition.

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• Distri+ution !ecomes more intensive and incentives may !e offered to

encourage preference over competing products.

• Promotion emphasi;es product differentiation.

'e"(ine Stage )As sa(es !e"(ine* t%e +irm %as se,era( o-tions.

• Maintain the product, possi!ly reuvenating it !y adding ne features and

finding ne uses.

• 'arvest the product - reduce costs and continue to offer it, possi!ly to a loyal

niche segment.

• 5iscontinue the product, li(uidating remaining inventory or selling it to

another firm that is illing to continue the product.

"he marketing mix decisions in the decline phase ill depend on the selectedstrategy. 2or example, the product may !e changed if it is !eing reuvenated, or leftunchanged if it is !eing harvested or li(uidated. "he price may !e maintained if the

product is harvested, or reduced drastically if li(uidated.

Stages %ntroductio

n

&rowt" Maturity Decine

./ Saes Ao 7ales /apidly

$ncreasing7ales


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"he complete range of products present ithin a company is knon as the product

mix. $n any multi !rand organi;ations, there are numerous products present. None

of the organi;ations ants to take the risk of !eing present in the market ith a

single product. $f the company has only a single product, than the demand of the

product ill !e too great or the company does not have the resources to expand the

num!er of products it has.

'oever, if the !usiness market is any example, than all the top companies have

multiple products. 3oca cola, %pple, Microsoft, Nestle, 'industan unilever,


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Aike %ir conditioners, televisions, smart phones, home appliances, so on and so

forth. "hus the product mix consistency is lo in 7amsung.

Aet us take an example of


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pricing methods can !e !roadly divided into to groupsPcost-oriented methodand market-oriented method.

'/ *ost-oriented Met"od:

*ecause cost provides the !ase for a possi!le price range, some firms may consider cost-oriented methods to fix the price.

*ost-oriented met"ods or pricing are as foows:

/0 Cost -(us -ri"ing.

3ost plus pricing involves adding a certain percentage to cost in order to fix the price. 2or instance, if the cost of a product is /s. :@@ per unit and the marketerexpects 1@ per cent profit on costs, then the selling price ill !e /s. ::@. "hedifference !eteen the selling price and the cost is the profit. "his method is

simpler as marketers can easily determine the costs and add a certain percentage toarrive at the selling price.

10 Mark)u- -ri"ing.

Mark-up pricing is a variation of cost pricing. $n this case, mark-ups are calculatedas a percentage of the selling price and not as a percentage of the cost price. 2irmsthat use cost-oriented methods use mark-up pricing.

Since ony t"e cost and t"e desired percentage markup on t"e seing price are

known3 t"e foowing formua is used to determine t"e seing price:

%verage unit cost7elling price

20 Break)e,en -ri"ing.

$n this case, the firm determines the level of sales needed to cover all the relevantfixed and varia!le costs. "he !reak-even price is the price at hich the salesrevenue is e(ual to the cost of goods sold. $n other ords, there is neither profit nor loss.

2or instance, if the fixed cost is /s. :, @@,@@@, the varia!le cost per unit is /s. 1@,

and the selling price is /s. 19, then the firm needs to sell =@,@@@ units to !reakeven. "herefore, the firm ill plan to sell more than =@,@@@ units to make a profit.$f the firm is not in a position to sell =@,@@@ limits, then it has to increase theselling price.

!"e foowing formua is used to cacuate t"e +reak-even point:


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3ontri!ution Q 7elling price Caria!le cost per unit

30 Target return -ri"ing.

$n this case, the firm sets prices in order to achieve a particular level of return oninvestment 0/6$.

!"e target return price can +e cacuated +y t"e foowing formua:

"arget return price Q "otal costs 05esired R /6$ investment "otal sales in units

or instance3 if t"e tota investment is (s/ .535553 t"e desired (6% is 05 per

cent3 t"e tota cost is (s/25553 and tota saes expected are .3555 units3 t"en t"e

target return price wi +e (s/ 7 per unit as s"own +eow:

9@@@ 0:@R S 1@,@@@ D@@@

"arget return price Q D

"he limitation of this method 0like other cost-oriented methods is that prices arederived from costs ithout considering market factors such as competition,demand and consumers8 perceived value. 'oever, this method helps to ensurethat prices exceed all costs and therefore contri!ute to profit.

40 Ear(& "as% re"o,er& -ri"ing.

7ome firms may fix a price to reali;e early recovery of investment involved, henmarket forecasts suggest that the life of the market is likely to !e short, such as inthe case of fashion-related products or technology-sensitive products.

7uch pricing can also !e used hen a firm anticipates that a large firm may enterthe market in the near future ith its loer prices, forcing existing firms to exit. $nsuch situations, firms may fix a price level, hich ould maximi;e short-termrevenues and reduce the firm8s medium-term risk.

/ Market-oriented Met"ods:

/0 er"ei,e! ,a(ue -ri"ing.

% good num!er of firms fix the price of their goods and services on the !asis ofcustomers8 perceived value. "hey consider customers8 perceived value as the

primary factor for fixing prices, and the firm8s costs as the secondary.

"he customers8 perception can !e influenced !y several factors, such asadvertising, sales on techni(ues, effective sales force and after-sale-service staff. $f


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customers perceive a higher value, then the price fixed ill !e high and vice versa.Market research is needed to esta!lish the customers8 perceived value as a guide toeffective pricing.

10 #oing)rate -ri"ing.

$n this case, the !enchmark for setting prices is the price set !y maor competitors.$f a maor competitor changes its price, then the smaller firms may also changetheir price, irrespective of their costs or demand.

!"e going-rate pricing can +e furt"er divided into t"ree su+-met"ods:

a/ *ompetitors 8parity met"od:

% firm may set the same price as that of the maor competitor.

+/ Premium pricing:

% firm may charge a little higher if its products have some additional specialfeatures as compared to maor competitors.

c/ Discount pricing:

% firm may charge a little loer price if its products lack certain features ascompared to maor competitors.

"he going-rate method is very popular !ecause it tends to reduce the likelihood of price ars emerging in the market. $t also reflects the industry8s coactive isdomrelating to the price that ould generate a fair return.

20 Sea(e!)5i! -ri"ing.

"his pricing is adopted in the case of large orders or contracts, especially those ofindustrial !uyers or government departments. "he firms su!mit sealed !ids for o!s

in response to an advertisement.

$n this case, the !uyer expects the loest possi!le price and the seller is expectedto provide the !est possi!le (uotation or tender. $f a firm ants to in a contract,then it has to su!mit a loer price !id. 2or this purpose, the firm has to anticipatethe pricing policy of the competitors and decide the price offer.


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30 'i++erentiate! -ri"ing.

2irms may charge different prices for the same product or service.

!"e foowing are some t"e types of differentiated pricing:

a/ *ustomer segment pricing:

'ere different customer groups are charged different prices for the same product or service depending on the si;e of the order, payment terms, and so on.

+/ !ime pricing:

'ere different prices are charged for the same product or service at differenttimings or season. $t includes off-peak pricing, here lo prices are chargedduring lo-demand tunings or season.

c/ 'rea pricing:

'ere different prices are charged for the same product in different market areas.2or instance, a firm may charge a loer price in a ne market to attract customers.

d/ Product form pricing:

'ere different versions of the product are priced differently !ut not proportionatelyto their respective costs. 2or instance, soft drinks of :@@,#@@, 9@@ ml, etc., are

priced according to this strategy.

market skimming pricing

'n approac" under w"ic" a producer sets a "ig" price for a new "ig"-end

product 9suc" as an expensive perfume or a uni;uey differentiated tec"nica

product 9suc" as one-of-a-kind software or a very advanced computer/ %ts

o+


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customers wi make w"ie in t"e store wi more t"an cover t"e store=s oss on

t"e "eaviy discounted product/

or ' +usiness strategy in w"ic" a +usiness offers a product or service at a price

t"at is not profita+e for t"e sake of offering anot"er product>service at agreater profit or to attract new customers/ !"is is a common practice w"en a

+usiness first enters a market? a oss eader introduces new customers to a

service or product in t"e "ope of +uiding a customer +ase and securing future

recurring revenue/

1.What according to you is sales promotion?

ans-7ales promotion is one level or type of marketing aimed either at the consumer or at the distri!ution channel 0in the form of sales-incentives. $t is used to

introduce ne product, clear out inventories, attract traffic, and to lift salestemporarily.

"o promote your !usiness in an effective ay, consider using the tried and truesales strategies of T


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product. $f your !usiness has the resources, you can launch a campaign to get endconsumers excited a!out your products. "elevision, print and electronic advertisingoptions lend themselves to the pull strategy.

3om!ining


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in person. $t can !e coupled ith in-store sales help in order to explain the featuresof the product.

#@- saes promotions3 direct marketing3 persona seing and sponsors"ip/

posters3 pumpAets 3 Bandouts3 6rganising ex"i+itions 3 (oads"ows 3 (educing

t"e price3 P( etc/

!!$

""A is the mixture of !oth the advertising strategy. ""A refers to an advertisingstrategy involving !oth a!ove and !elo the line communications in hich oneform of advertising points the target to another form of advertising there!ycrossing the &line&.

"he use of mass advertising forming a prospect or customer data!ase, hich can

!e implemented for direct marketing activities. %n example of this ould !ean ad on "C, hich features a toll-free num!er for driving direct contact ithne clients or customers.

$n the ""A approach, a mix of %"A and *"A are used to integrate a marketer&s

efforts and optimi;e returns from these separate investments.

"his sitch in the ""A approach has shifted its emphasis more toards *"A. U#V "he

idea remains to optimi;e the return on marketing !udget spent !y focusing one&s

energy on inning smaller yet more crucial *"A !attles than %"A ars ith ell-funded competition. % fe examples areH !us stand hoardings, pamphlets, small

informational sheets along ith the nespaper, etc.

:@.What is pu!lic relations?

ans-"he profession or practice of creating and maintaining goodill of anorgani;ation&s various pu!lics 0customers, employees, investors, suppliers, etc.,

usually through pu!licity and other nonpaid forms of communication. "hese effortsmay also include support of arts, charita!le causes, education, sporting events, andother civic engagements.

"he company is attempting to improve its image via an aggressive pu!lic relationscomplain, that includes sponsoring local sporting events, dedicating a ne pu!lic

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arts installment, and partnering ith schools to provide after-school enrichmentactivities.

:1.What role does


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5irect marketing removes the Tmiddle manT from the promotion process, as acompany&s message is provided directly to a potential customer. "his type ofmarketing is typically used !y companies ith smaller advertising !udgets, sincethey cannot afford to pay for advertisements on television and often do not havethe !rand recognition of larger firms.

%MP6(!'N!

P#(S6N'$ S#$$%N&


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a.*:3 here the products are sold directly to the customers.

!.*:* here trading netorks or auction sites may!e used to reach out to the necustomers and serve the existing one

c.3:3 here one customer may further sell the product to another customer.Examples of online marketing may include !anner ads, !logs, social netorkadvertisement.

$t is the use of Electronic media especially e! to gra! the attention of present and prospective !uyers ith the help of advertisement campaigns and marketingtechni(ues and strategies that lead to the main o!ective of selling a product orservice through on line to a mass audience. %ma;on, flip-cart... ....are doing on

line marketing !usiness.

!ypes of We+ Marketing

• Dispay 'dvertising C "he use of !anner ads and other graphical

advertisements to market products online.

• Searc" #ngine Marketing C >sing search engines to help connect users

ith the products and services they are most interested in. 3ompanies can pay to receive preferential ranking in a list of search results.

• Searc" #ngine 6ptimiation C % free and organic ay for companies to

improve their visi!ility on search engines.

• Socia Media Marketing C >sing sites like 2ace!ook and "itter to connect

ith customers.

• #mai Marketing C 3ommunicating ith customers through the use of

carefully designed emails.

• (eferra Marketing C >sing internet channels to encourage consumers to

recommend products to their friends and families.

• 'ffiiate Marketing C Working ith other !usinesses to make it easier for

consumers to shop for products online.


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• %n+ound Marketing C *oosting the value of a company&s e! presence !y

adding uni(ue content like !logs, games, and tutorial videos.

• ,ideo Marketing C >sing e! videos for promotional purposes.

:=.What are the advantages of online advertising over traditional advertising?

ans- 'ere is ho $ see the 1@ !enefits of 5igital Marketing v. "raditionalMarketingH

./ $eve paying fiedH %ny !usiness can compete ith any competitor regardlessof si;e ith a solid digital marketing strategy. "raditionally a smaller retailerould struggle to match the finesse of the fixtures and fittings of its largercompetitors. 6nline, a crisp ell thought out site ith a smooth customer ourney

and fantastic service is king not si;e.

0/ (educed costH 4our !usiness can develop its online marketing strategy for verylittle cost and can potentially replace costly advertising channels such as 4ellonlike traditional methods you can see in real time hat isor is not orking for your !usiness online and you can adapt very (uickly toimprove your results. 2or measuring traffic to your site you can use )oogle%nalytics to measure specific goals you ant to achieve for your e!site or !log

and most packaged email marketing solutions provide good insight into ho many people are opening, reading and converting from your emails.

4/ (ea time resutsH you don8t have to ait eeks for a !oost to your !usinesslike you ould have to aiting for a fax or form to !e returned. 4ou can see thenum!ers of visitors to your site and its su!scri!ers increase, peak trading times,conversion rates and much more at the touch of a !utton.

2/ (efinement of your strategy: *asically anything that you capture in yourcustomer ourney can !e reported on and honed for greater success at the fraction

of the cost of traditional marketing. %fter all, ho annoying is it to get a couple offorms returned from a mailshot. Marketing online ena!les you to refine yourstrategy at any point in time and see any improvements or opportunities for furtherrefinement almost instantaneously.

E/ rand Deveopment: % ell maintained e!site ith (uality content targetingthe needs and adding value to your target audience can provide significant value


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and lead generation opportunities. "he same can !e said for utilising social mediachannels and personalised email marketing.

7/ ar greater exposureH your !usiness can !e seen anyhere in the orld fromone marketing campaign, the cost to do this using traditional methods ould !econsidera!le.


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percentage. %nd, this is one of the !iggest reasons hy 7M*&s are noconsidering online marketing to their marketing strategy and ho really can&t

!ear the cost of outdoor !anner advertising, trade shos or maga;ine ads.

• #asier targeting means: 5ue to the nature of the internet, it is possi!le to

taper don the target audience so that only the segment that does vie thead consists of potentially strong !uyers. $n fact, there is a lot of geographicaltargeting to make the ads relevant to users. 7imilarly, users8 e! !rosinghistory can !e made a !ase for ;eroing in on preferences and avoidinguseless repetitions.

• Measura+e: "his is one of the most important factors in deciding the

impact of online advertising. 6n the internet, it is possi!le to collect accuratedata of hits, pages visited, num!er of times the ad as vieed !y the same

user, ho the user reached to the ad or the e!site, and hether the activityresulted in a sale.

• ,ersatiity: >nlike offline media, online advertising can !e highly

interactive. 2rom incorporating videos and games to audio messages andsections for (uery input, there are many methods to keep the consumerkeenly and constantly engaged.

• Speed: 6nce an ad copy is ready, the distance !eteen the advertiser and its

consumers can !e rapidly covered. 5eployment can !e immediate as most of the time the delivery of ad schedules is not dependent upon the pu!lisher8sschedule. Even modifications and replacements in the ad are faster on theinternet.

:9.What are the pro!lems faced in online marketing?

ans- 6nline marketing also !rings ith it disadvantages some of hich are asfollosH

a.%uthenticityH the authenticity of the product may!e (uestiona!le, as the real productis not availa!le at the time of its purchase. "he product may not turn out as expected

!y the customers. 'oever, sites like La!ong.com or Myntra.com , keeping this pointin vie are offering its customers the option to return the product if they aredissatisfied ith it after a trial. "his has increased the goodill and popularity of suchsites.

http://www.smartechindia.com/seo-services.htmlhttp://www.smartechindia.com/seo-services.html


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!.$nternet marketing scams H 2ake schemes like Kget-rich-(uick8 or Kin cash pri;e8 onthe internet, often lure the users to payout huge sums of money to such frauds and notgettomg anything in return. $t has given rise to a lot of scams and fraudulent activitiesdetrimental to the users.

c.7ecurity issuesH 3onsumers may!e hesitant to disclose their personal information onthe internet as they may feel the invasion of their privacy.

:B.5ifferentiate !eteen !usiness market and consumer market.ans-

usiness Marketing: *usiness Marketing refers to the sale of either products orservices or !oth !y one organi;ation to other organi;ations that further resell thesame or utili;e to support their on system.

*onsumer Marketing: on the other hand refers to the transaction of goods andservices !eteen organi;ations and potential customers.

"he a!ove definitions of !usiness marketing and consumer marketing highlight thedifference !eteen the to commonly used terms in marketing 0*:* and*:3.*usiness marketers do not entertain consumers ho purchase products andservices for their end-use. "hey deal only ith other !usinessesfirms to sell their

products.$n consumer markets, products are sold to consumers either for their onuse or use !y their family mem!ers.

"here are many difference !eteen !usiness markets and consumer markets.7omeof the differences are-

Difference +etween +usiness markets and consumer markets due !o !"e

Nature 6f Purc"ases

%. 6rgani;ational consumers purchase capital e(uipment, ra materials,semifinished goods, and other products for use in further production or operationsor for resale to others, hereas final consumers usually ac(uire the finished itemsfor personal, family, or household use.

*. 6rgani;ational consumers are likely to re(uire exact product specifications.2inal consumers more often !uy on the !asis of description, style, and color.3. 6rgani;ational consumers often use multiple-!uying responsi!ility, in hichto or more employees formally participate in complex or expensive purchasedecisions. 2inal consumers employ it less fre(uently and less formally.


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Difference +etween +usiness markets and consumer markets on the !asis of demand

%. 5erived demand occurs for organi;ational consumers !ecause the (uantity of items they purchase is often !ased on the anticipated demand of their finalconsumers for specific finished goods and servicesJ therefore, organi;ationalconsumers are less sensitive to price changes. %s long as final consumers areilling to pay higher prices, organi;ational consumers ill not o!ect to priceincreases.

*. 5emand is volatile due to the accelerator principle, here!y final consumer demand affects many levels of organi;ational consumers.

3. "here are feer organi;ational consumers than final consumers.

5. *usiness market consumers tend to !e geographically concentrated.

E. *uying specialists are often used.

2. 5istri!ution channels are shorter.

Differences of +usiness markets and consumer markets +ased 6n ' &o+a

Perspective

%. %s ith final consumers, there are many distinctions among organi;ationalconsumers around the orld and sellers must understand and respond to them.

*. 3ompanies doing !usiness in foreign markets must kno ho to deal ithorgani;ational consumers in those markets.

3. Nations8 cultures have a large impact on the ay their organi;ational consumersnegotiate and reach decisions.

:D.What is institutional selling?

ans-"his is the market here !uyer are large players like hospitals, schools, universityand hotels and the product purchased is not directly consumed !y them. "hey use the purchased good to deliver and create goods and service of their on.

ExampleH 'otels !uys furnishing items and eata!les in large (uantity. *ut that isnot utili;ed !y the hotel oner !ut they are used to give service to their customerin the re(uired form.

http://www.marketing91.com/managing-supply-demand/http://www.marketing91.com/managing-supply-demand/


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or Aarger !uyers 0such as hotels, hospitals, schools, and universities ho purchase goods and services for use in the production of their on goods or services.

%MP6(!'N!

&uerria marketing

&uerria marketing is an advertisement strategy concept designed for small !usinesses to promote their products or services in an unconventional ay ithlittle !udget to spend. "his involves high energy and imagination focusing ongrasping the attention of the pu!lic in more personal and memora!le level. 7omelarge companies use unconventional advertisement techni(ues, proclaiming to !eguerrilla marketing !ut those companies ill have larger !udget and the !rand isalready visi!le.U1V "he main point of guerrilla marketing is that the activities are

done exclusively on the streets or other pu!lic places, such as shopping centers, parks or !eaches ith maximum people access so as to attract much audience.U:V

>nlike typical pu!lic marketing campaigns that utili;e !ill!oards, guerrillamarketing involves the application of multiple techni(ues and practices in order toesta!lish direct contact ith the customers.U#V 6ne of the goals of this interaction isto cause an emotional reaction in the clients and the final goal of marketing is toget people to remem!er !rands in a different ay than they are used to . "hetechni(ue involves from flyer distri!ution in pu!lic spaces to creating an operationat maor event or festival mostly ithout directly connecting to the event !ut using

the opportunity. "he challenge ith any guerrilla marketing campaign is to find thecorrect place and time to do the operation ithout getting involved in legal issues.

"he different types of guerrilla marketing areH %m!ient, %m!ush, 7tealth, Ciral andthe ne concept called 7treet Marketing,

3ompanies using guerrilla marketing rely on its in-your-face promotions to !espread through viral marketing or ord-of-mouth, thus reaching a !roaderaudience for free. "he use of this tactic is not designed for all types of goods andservices, and it is often used for more TedgyT products and to target youngerconsumers ho are more likely to respond positively.

:What do you understand !y 7ervices Marketing? 'o is it different from


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%ny act or performance that one party can offer to another that is essentiallyintangi!le and does not result in the onership of anything. $ts production may not

!e tied to a physical product otler, 1FF1. or What is 7ervice? "he Ne Cie7ervice includes every interaction !eteen any customer and anyone representingthe company, includingH5ealers7alespeople/eceptionists and 7chedulersManagement and Executives7ervice Employees*illing and %ccounting


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%mpications of Beterogeneity

7ervice delivery and customer satisfaction depend on employee and customeractions

7ervice (uality depends on many uncontrolla!le factors

"here is no sure knoledge that the service delivered matches hat as plannedand promoted%mpications of Simutaneous Production and *onsumption 9%nsepara+iity

3ustomers participate in and affect the transaction

3ustomers affect each other

Employees affect the service outcome

5ecentrali;ation may !e essential

Mass production is difficult

%mpications of Peris"a+iity

$t is difficult to synchroni;e supply and demand ith services

7ervices cannot !e returned or resold

:F.What are the D


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%ll human actors ho play a part in service delivery and thus influence the !uyer8s perceptionsH namely, the firm8s personnel, the customer, and othercustomers in the service environment.P"ysica #vidence

"he environment in hich the service is delivered and here the firm andcustomer interact, and any tangi!le components that facilitate performance orcommunication of the service.Process

"he actual procedures, mechanisms, and flo of activities !y hich the service isdeliveredPthe service delivery and operating systems.

or

"he first four elements in the services marketing mix are the same as those in thetraditional marketing mix. 'oever, given the uni(ue nature of services, the

implications of these are slightly different in case of services.

1. Product: $n case of services, the Kproduct8 is intangi!le, heterogeneous and perisha!le. Moreover, its production and consumption are insepara!le.'ence, there is scope for customi;ing the offering as per customerre(uirements and the actual customer encounter therefore assumes particular significance. 'oever, too much customi;ation ould compromise thestandard delivery of the service and adversely affect its (uality. 'ence

particular care has to !e taken in designing the service offering.

:. Pricing:


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=. Promotion: 7ince a service offering can !e easily replicated promotion !ecomes crucial in differentiating a service offering in the mind of theconsumer. "hus, service providers offering identical services such as airlinesor !anks and insurance companies invest heavily in advertising theirservices. "his is crucial in attracting customers in a segment here theservices providers have nearly identical offerings.

We no look at the # ne elements of the services marketing mix - people, processand physical evidence - hich are uni(ue to the marketing of services.

9. Peope:


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>ni(ue design, sign, sym!ol, ords, or a com!ination of these, employed increating an image that identifies a product and differentiates it from itscompetitors. 6ver time, this image !ecomes associated ith a level of credi!ility,(uality, and satisfaction in the consumer&s mind 0see positioning. "hus !rands helpharried consumers in croded and complex marketplace, !y standing for certain

!enefits and value. Aegal name for a !rand is trademark and, hen it identifies orrepresents a firm, it is called a !rand name. 7ee also corporate identity.

#1.hat is !randing and !rand e(uity?

ans- ('ND%N&

"he process involved in creating a uni(ue name and image for a product in theconsumers& mind, mainly through advertising campaigns ith a consistent theme.*randing aims to esta!lish a significant and differentiated presence in the market

that attracts and retains loyal customers

randing Strategy

*rand identity is a vital part of a !usiness, and it should !e incorporated into manykey aspects and areas.

X 3ompany name, logo, or sloganX 3ompany letterheadX 3ompany formsX Marketing materials and advertising

X 7ignageX We! sitesX >niformsX


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- No Name Branding - %lso referred to as generic !randing, this is a +!randless product that is sold as a lo-cost alternative to a !rand name product.

('ND #HI%!J

% !rand&s poer derived from the goodill and name recognition that it has earnedover time, hich translates into higher sales volume and higher profit margins against competing !rands.

6/

"he value premium that a company reali;es from a product ith a recogni;a!lename as compared to its generic e(uivalent. 3ompanies can create !rand e(uity for their products !y making them memora!le, easily recogni;a!le and superior in

(uality and relia!ility. Mass marketing campaigns can also help to create !rande(uity. $f consumers are illing to pay more for a generic product than for a

!randed one, hoever, the !rand is said to have negative !rand e(uity. "his mighthappen if a company had a maor product recall or caused a idely pu!lici;edenvironmental disaster.

"he additional money that consumers are illing to spend to !uy 3oca 3ola ratherthan the store !rand of soda is an example of !rand e(uity.

#:.What do you mean !y *rand %areness, *rand /ecall and *rand /ecognition?

ans- rand 'wareness

"he likelihood that consumers recogni;e the existence and availa!ility of acompany&s product or service. 3reating !rand aareness is one of the key steps in

promoting a product.

*rand aareness is an important ay of promoting commodity-related products."his is !ecause for these products, there are very fe factors that differentiate one

product from its competitors. "herefore, the product that maintains the highest !rand aareness compared to its competitors ill usually get the most sales.

2or example, in the soft drink industry, very little separates a generic soda from a !rand-name soda, in terms of taste. 'oever, consumers are very aare of the !rands


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rand (eca

*rand /ecall is the extent to hich a !rand name is recalled as a mem!er of a !rand, product or service class, as distinct from !rand recognition.

3ommon market research usage is that pure !rand recall re(uires Tunaided recallT.2or example a respondent may !e asked to recall the names of any cars he maykno, or any hisky !rands he may kno.

7ome researchers divide recall into !oth TunaidedT and TaidedT recall. T%idedrecallT measures the extent to hich a !rand name is remem!ered hen the actual

!rand name is prompted. %n example of such a (uestion is T5o you kno of theT'ondaT !rand?T

$n terms of !rand exposure, companies ant to look for high levels of unaidedrecall in relation to their competitors. "he first recalled !rand name 0often calledTtop of mindT has a distinct competitive advantage in !rand space, as it has thefirst chance of evaluation for purchase.

rand reca is a marketing research test conducted !y a company to understand‘How many people recall te company!s product brand name" as compared to

oter companies! product brand names#!

rand recognition is a marketing research test conducted !y a company tounderstand ‘How many people recogni$e te company!s brand in a particular

product segment

"he extent to hich the general pu!lic 0or an organi;ation&s target market is a!leto identify a !rand !y its attri!utes. *rand recognition is most successful hen

people can state a !rand ithout !eing explicitly exposed to the company&s name, !ut rather through visual signifiers like logos, slogans and colors.

"o measure !rand recognition and the effectiveness of promotional campaigns,many companies ill perform experiments on study groups. *oth aided andunaided recall tests may !e used. With similar products, !rand recognition illresult in higher sales, even if !oth !rands are of e(ual (uality.

http://www.asiamarketresearch.com/glossary/brand-recognition.htmhttp://www.investopedia.com/terms/b/brand.asphttp://www.asiamarketresearch.com/glossary/brand-recognition.htmhttp://www.investopedia.com/terms/b/brand.asp


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%MP6(!'N!

IM(#$$' ('ND%N&

%n um!rella !randing strategy, is a marketing practice that involves selling many

related products under a single !rand name. >nlike individual product !randing,hich uses different !rand names for different products, um!rella !randing uses asingle !rand name, and in some cases logo, for different products.

>m!rella !randing offers several !enefits to marketers. "hey include

• Extra *rand 3reation not re(uired

• 7ingle spend on advertising 0for all products

• 5ependant perceptionH "he perception depends on the main !rand

• Easier launch of ne products

• *etter response to ne products hen compared to individual !randing

>m!rella !randing involves creating huge !rand e(uity for a single !rand, andthereafter leveraging that over multiple products. >m!rella !randing is also knonas family !randing. $t is very common to find um!rella !randing in 2M3)

products.6n the flipside, !ad reputation of any one product, may affect the e(uity of all theother products using the same !rand name. $n $ndia, um!rella !randing is usedsuccessfully !y %mul for dairy products, "ata for its 2M3) products like "ata "ea,and "ata 7alt, and ingfisher for alcoholic !everages, mineral ater0see 7urrogate%dvertising, and %irlines. Wills also uses um!rella !randing for its to!acco

products, apparels, accessories, and soaps O shampoo.

##.5ra and explain *3) 0*oston 3onsulting )roup Matrix?

ans- Definition: t"e *& Matrix is an early 01FD@ strategic portfoliomanagement tool created !y the *oston 3onsulting )roup."he idea !ehind it is that to ensure long-term value creation, a company shouldhave a portfolio of products that contains !oth high-groth products in need ofcash inputs and lo-groth products that generate a lot of cash.


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- 3ash 3os 0lo market groth, high market share- 7tars 0high, high- Iuestion Marks 0high, lo- 5ogs 0lo, lo%lso called *usiness


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cash re(uired to turn (uestion marks into market leaders, to cover theadministrative costs of the company, to fund research and development, to servicethe corporate de!t, and to pay dividends to shareholders. 3ompanies are advised toinvest in cash cos to maintain the current level of productivity, or to TmilkT thegains passively.

Dogs: %lso knon as pets, dogs are units or products that have !oth a lo marketshare and a lo groth rate."hey fre(uently !reak even, neither earning norconsuming a great deal of cash. 5ogs are generally considered cash traps !ecause

!usinesses have money tied up in them, even though they are !ringing !ack !asically nothing in return. "hese !usiness units are prime candidates fordivestiture.

Huestion marks: "hese parts of a !usiness have high groth prospects !ut a lo

market share. "hey are consuming a lot of cash !ut are !ringing little in return. $nthe end, (uestion marks, also knon as pro!lem children, lose money. 'oever,since these !usiness units are groing rapidly, they do have the potential to turninto stars. 3ompanies are advised to invest in (uestion marks if the product has

potential for groth, or to sell if it does not.

#=.Explain


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overall revenue ill !e limited !y the a!ility or illingness of customers to paytheir price.

6igopoy

%n oligopoly is similar in many ays to a monopoly. "he primary difference is thatrather than having only one producer of a good or service, there are a handful of

producers, or at least a handful of producers that make up a dominant maority ofthe production in the market system. While oligopolists do not have the same

pricing poer as monopolists, it is possi!le, ithout diligent governmentregulation, that oligopolists ill collude ith one another to set prices in the sameay a monopolist ould.

Monopoistic *ompetition

Monopolistic competition is a type of market system com!ining elements of a

monopoly and perfect competition. Aike a perfectly competitive market system,there are numerous competitors in the market. "he difference is that eachcompetitor is sufficiently differentiated from the others that some can chargegreater prices than a perfectly competitive firm. %n example of monopolisticcompetition is the market for music. While there are many artists, each artist isdifferent and is not perfectly su!stituti!le ith another artist.

Monopsony

"hey may also !e differentiated according to the num!er of !uyers. Whereas a perfectly competitive market theoretically has an infinite num!er of !uyers and

sellers, a monopsony has only one !uyer for a particular good or service, givingthat !uyer significant poer in determining the price of the products produced.

#9.)ive some examples of 6ligopolistic, Monopolistic and


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supplier has any influence over the market price, and thus, the suppliers are oftenreferred to as price takers. "he primary reason hy there are many firms is !ecausethere is a lo !arrier of entry into the !usiness. "he !est examples of a purelycompetitive market are agricultural products, such as corn, heat, and soy!eans.

Monopoistic competition is much like pure competition in that there are manysuppliers and the !arriers to entry are rather lo. 'oever, the suppliers try toachieve some price advantages !y differentiating their products from other similar

products. Most consumer goods, such as health and !eauty aids, fall into thiscategory. 7uppliers try to differentiate their product as !eing !etter so that they can

ustify higher prices or to have a larger market share than the competition.Monopolistic competition is only possi!le, hoever, hen the differentiation issignificant or if the suppliers are a!le to convince consumers that they aresignificant !y using advertising or other methods that ould convince consumers

of a product&s superiority. 2or instance, suppliers of toothpaste may try to convincethe pu!lic that their product makes teeth hiter or helps to prevent cavities or

periodontal disease.

%n oigopoy is a market dominated !y a fe suppliers. % high !arrier to entrylimits the num!er of suppliers that can compete in the market, so the oligopolisticfirms have considera!le influence over the market price of their product. 'oever,they must alays consider the actions of the other firms in the market henchanging prices, !ecause they are certain to respond in a ay to neutrali;e anychanges so that they can maintain their market share. %uto manufacturers are a

good example of an oligopoly, !ecause the fixed costs of automo!ilemanufacturing are very high, thus limiting the num!er of firms that can enter intothe market.

% pure monopoy has pricing poer ithin the market. "here is only one supplierho has significant market poer and determines the price of its product. % puremonopoly faces little competition !ecause of high !arriers to entry, such as highinitial costs, or !ecause the company has ac(uired significant market influencethrough netork effects, for instance.

6ne of the !est examples of a pure monopoly is the production of operatingsystems !y Microsoft. *ecause many computer users have standardi;ed onsoftare products that are compati!le ith Microsoft&s Windos operating system,most of the market is effectively locked in, !ecause the cost of using a differentoperating system, !oth in terms of ac(uiring ne softare that ill !e compati!le


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ith the ne operating system and !ecause the learning curve for ne softare issteep, people are illing to pay Microsoft&s high prices for Windos.

#B.5ra %nsoff&s Matrix?

ans- "o portray alternative corporate groth strategies, $gor %nsoff presented amatrix that focused on the firm&s present and potential products and markets0customers. *y considering ays to gro via existing products and ne products,and in existing markets and ne markets, there are four possi!le product-marketcom!inations. %nsoff&s matrix is shon !eloH

'nsoff Matrix

#xisting Products New Products

#xisting

Markets Market Penetration Product Deveopment

New

Markets Market Deveopment Diversification

%nsoff&s matrix provides four different groth strategiesH

• Market Penetration - the firm seeks to achieve groth ith existing

products in their current market segments, aiming to increase its marketshare.

• Market Deveopment - the firm seeks groth !y targeting its existing

products to ne market segments.

• Product Deveopment - the firms develops ne products targeted to its

existing market segments.

• Diversification - the firm gros !y diversifying into ne !usinesses !y

developing ne products for ne markets.

http://www.quickmba.com/marketing/market-share/http://www.quickmba.com/marketing/market-share/http://www.quickmba.com/marketing/market-share/http://www.quickmba.com/marketing/market-share/


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./ Market Penetration

"his involves increasing sales of an existing product and penetrating the marketfurther !y promoting the product heavily or reducing prices to increase sales. "hisstrategy has the loest risk strategy as the firm knos the product and the market.Market penetration is often used !y supermarkets and large retail chains.

0/ Product Deveopment

"he !usiness developsintroduces ne products into existing markets ith the aimof selling the ne product to existing customer groups. 2or example Microsoftith their S!ox: game console introduced the inect, an add on that alloscustomers to play ithout the use of a controller, much like the Nintendo Wii. "hisis an example of a ne product hich simply needs to !e added onto the existingmodel aimed at the existing market. nder a market development strategy a firm sells existing products to nemarkets. 2or example a sandich shop hich is doing ell in one area, expandsand opens another sandich shop in a different region. "hrough marketdevelopment our sandich shop has the potential to !ecome a national chain."here are different ays to define ne markets including different locations forsales to aiming products at different customer groups 0age, !ackground, interests,income.

4/ Diversification5iversification involves selling ne products to ne markets. 2or example if a

!usiness hich usually sells food to families, decides it ould like to sell cars tosingle men it ould !e diversifying. 5iversification is a high risk strategy as the

!usiness is unfamiliar ith the product and the target market. 'oever as it alsohas the potential to produce the highest reards many !usinesses are prepared totake the risk..

*oncusion

%nsoff&s matrix ena!les !usinesses to decide groth strategy !ased on productsand the markets that the products are aimed at. >nder the matrix they have theoption to stick ith the markets and products they kno 0market penetration orchange one thing the market 0market extension or the product 0productdevelopment. 2or those prepared to take accept !ig failure risks for potentiallylarger reards there is diversification into ne products and markets..


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#D.Explain


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!B(#'! 6

N#W #N!('N!S arriers to #ntry

%!solute cost advantages


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Whether you are starting a ne !usiness or looking for more insight into yourexisting company&s prospects, you pro!a!ly have (uestions a!out the competition.6ne ay to anser those (uestions is !y using


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argaining power of customers/ "his force looks at the poer of the consumer toaffect pricing and (uality. 3onsumers have poer hen there aren&t many of them,

!ut lots of sellers, as ell as hen it is easy to sitch from one !usiness&s productsor services to another. *uying poer is lo hen consumers purchase products insmall amounts and the seller&s product is very different from any of its competitors.

!"reat of new entrants/ "his force examines ho easy or difficult it is forcompetitors to oin the marketplace in the industry !eing examined. "he easier it isfor a competitor to oin the marketplace, the greater the risk of a !usiness&s marketshare !eing depleted. *arriers to entry include a!solute cost advantages, access toinputs, economies of scale and ell-recogni;ed !rands.

!"reat of su+stitute products or services/ "his force studies ho easy it is forconsumers to sitch from a !usiness&s product or service to that of a competitor. $t

looks at ho many competitors there are, ho their prices and (uality compare tothe !usiness !eing examined and ho much of a profit those competitors areearning, hich ould determine if they have the a!ility to loer their costs evenmore. "he threat of su!stitutes are informed !y sitching costs, !oth immediateand long-term, as ell as a !uyer&s inclination to change

Persona Seing:

#.7ell this pen!ottlenote!ook to me?ans-atch videos,and read articles.

#F.What are different skills re(uired to !e a good sales person?ans-

*elo are the skills re(uired to !e, !est among the herd of successful 7ales people

0$ have tried to condense the skills to sell either a


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:. %!ility to Aisten

%long ith speaking, a great salesperson knos hen to stop talking and listen.

"hey never cut someone off hile they are talking, !ecause in doing so they ould

fail to hear a key element in identifying hat that person&s needs might !e.

#. %sks Iuestions

7alespeople are naturally in(uisitive and kno that in order to isolate hat the real

need or desire is in the !uyer, they need to ask (uestions that ill lead them to the

anser. "hey naturally ask (uestions !ecause they have a desire to help solve the

pro!lem.

=.


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they ill not earn. "hey are also very persistent to finish hat they start. "hey

achieve their goals, even if they are small ones.

D.


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ould alays camouflage as a ro!u"t8Ser,i"e S-e"ia(ist ro(e ratherthan urging to

sell something 0using more of a sales tone.

"hese skills may !e not !e the exhaustive list for a 7uccessful 7ales person, !ut are

definitely the key drivers that a 7ales person should posses. %s $ mentioned in the

initial paragraph, there are a fe natural skills that should already exist ithin

those ho ant to !e successful in selling.

[email protected] do you understand !y prospecting?ans-

% prospect is a potential customer or sales lead hich has !een (ualified as fittingcertain criteria. "his may includeH fitting the target market, having !uying authorityand !eing a key decision maker. "o !ecome a prospect, an indicated interest in the

product or service !eing offered is not alays necessary.6nce (ualification criteria is met, the lead is then converted into a TprospectT 0a

potential customer.

"he selling phase !egins %2"E/ the prospecting phase. % properly (ualified sales prospect has a great chance of earning future sales and moving on to !ecome along-term customer of the company.

Not a Saes $ead

% prospect is often confused as a sales lead. % sales lead is un(ualified and racontact information. Most sales leads come from purchased lists !ased off variousdemographic factors. 'oever, leads can !e found anyhere -- phone !ooks,referral lists or even people you meet alking don the street. $t is the sales

department&s responsi!ility to reach out to each lead and hittle the list don !asedoff the (ualifying criteria listed a!ove.

W"at is ProspectingK


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1. ProspectingH


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contact ith a company, those ho have repeated contact ith a company and thoseho have made a purchase. or When it comes to sales, success is all a!out finding prospects ho are ready to !ecome

paying customers. >nfortunately, given the overall si;e of the potential customer pool,and the relative fe prospects ho are capa!le of completing the ourney, it can !every difficult to identify the right people on hich to focus your sales efforts. "his ishere the management of your sales funnel comes into play.

"he sales funnel is !asically nothing more than an attempt to visuali;e a concept inhich (ualified !uyers are located and separated from the less-than (ualified prospectsaround them.

=:.What is %$5% selling model. 5emonstrate it ith example?

ans-%$5% is a communication model used !y firms to help them sell their products andservices. %$5% is an acronym for %ttention, $nterest, 5esire, %ction.

'ttention

When a product is launched the first goal is to gra+ attention. 2irms spendmillions thinking a!out ho to gra! attention for their product. "he method used togain attention ill depend on the product, options include sponsorship, hospitality

events and large promotion campaigns. $f the product is a gadget or technology afirm may decide to shocase it at a technology exhi!ition for example E# theannual video game conference sho hich is visited !y ournalists and technologyindustry professionals. $f the product is trendy and fashiona!le the firm may ask acele!rity ho ill appeal to the target market to endorse it.

%nterest

6nce you have secured people&s attention, the next o! is to "od t"eir interest."his is done !y promoting product features and clearly stating the !enefit the

product has to offer. "he aim at this stage is to provide the customer ithinformation that ill move them to the next stage of the process, desire.

Desire

"he third stage is desireJ at this point you ant the information 0interest customershave a!out your product to create a desire to have your product. % uni(ue selling

point ill help customers desire it over competitor products. $f your product is a


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trend setter, the latest Tmust haveT product, !u;; marketing ill help create astrong desire.

'ction

"he final stage is the purc"ase action, if a company has !een successful ith its%$5% strategy then customers ill purchase its products. "he task at this stage isto help the purchase action !y making it as simple as possi!le. 2or example !yoffering a range of payment options and avenues e.g. 3redit card, che(ue, via highstreet shops and through the internet.

*"anne Management: '$S6 (##( !#@! 66) 6( *B'NN#$ P'(!

$M


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=#.What is 3hannel Aength, 3hannel Width and 3hannel 5epth?ans-

*"anne $engt"

*"anne engt" refers to the num!er of intermediaries in a particular distri!utionchannel !eteen the producer O consumer.

% distri!ution channel can !e long or short.

$ong c"anne- $nvolves many intermediaries

S"ort *"anne- $nvolves fe intermediaries orking in succession to provide the

consumer ith goods.

2actors influencing marketing channel strategiesH

actors *"aracteristic of S"ort

*"anne

*"aracteristic of ong

c"anne


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Market factors *usiness users 3onsumers

)eographicallyconcentrated

)eographically dispersed

Extensive technicalknoledge O regularservice re(uired

Aittle technical kno

*"anne widt" L !"e num+er of intermediaries found at t"e same eve in t"ec"anne/

9refer +oooks

==.What do you mean !y intensive distri!ution, selective distri!ution and exclusivedistri!ution?ans-

2or taking your products to the end-users i.e consumers, you certainly need a

distri!ution channel. 3hoosing a distri!utor is a proven ay that helps in thegroth of your !usiness and vital to attain targets. While selecting distri!utors,o!serve the prospective distri!utorH if he has the characteristics to !ecome acapa!le distri!utor, if he ould !e a!le to help you in accomplishing your !usinessexpansion goal.

We present the three types of distri!ution !usiness models to !e adopted !ycompanies. "he differences are !ased upon the si;e of the market the distri!utortargets and !readth of services offering. 7ome partnerships are ne hile others

have evolved for many years. 7ome distri!utors handle many categories andchannels here others focus against a specific market segment. Aet8s take a sneak peek of themH

%ntensive Distri+ution:


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• 7ave expenses

• $mprove marketing efficiency

•

3ontrol the marketing

*onsH

• 5ifficult to attain a variety of !usiness o!ectives in relaxed conditions of

the marketing environment

• Aack of adapta!ility to goods that are not selective

• % certain risk as firm has to provide more services to selected middlemen

#xcusive Distri+ution:

Exclusive distri!ution is an intense form of selective distri!ution in hich only onedistri!utor is appointed in each territory. "aking exclusive distri!utorshipopportunity is not tough !ut need fe steps to follo. "his type of distri!utor isused here channel control is important to maintain !rand image, !rand integrity,and often higher pricing points.When the manufacturing firm distri!utes its products through ust one or to maor outlets in the market that are exclusively dealing in it, it is said that the firm is

using an exclusive distri!ution strategy.

'ppe "ad an excusive distri+ution dea wit" '!! to provide t"e iP"one to

consumers/

%t caters to:

Exclusive distri!utors usually cover designer are, maor domestic appliances, andthe most luxurious items O !rands like )ucci,


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*onsH

• 5ifficult to maintain a high level of !rand image

• *etting on one dealer in each market

• 6nly suita!le for high priced O lo volume products

=9.6n hat criteria can channel mem!ers !e evaluated for their proper selection?ans-"he 73


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=D..What do you understand !y 3hannel margin?

ans-*"anne Margin

"he price difference !eteen hat a manufacturer charges and hat a consumer pays is called the channel margin. 2or example, suppose a !reakfast cerealmanufacturer sells its products to a holesaler at a price of Y1 per !ox. "heholesaler takes delivery of a large num!er of !oxes and distri!utes them tovarious retailers across the country, charging Y: per !ox. /etailers then increase the

price to Y= per !ox hen selling to consumers. "he total channel margin is thus Y#.

#ffectEach marginal increase in price is a trade-off. 6n one hand, each channel mem!erants to make as much profit as possi!le, so there is alays a poerful motivationto increase the price. 6n the other hand, high prices turn off consumers, so if any

!usiness in the chain increases its price too much, everyone loses. 2or example, if agrocery store increases its cereal prices too much, customers ill go to other storesfor cereal, hurting the future profit potential for all the channel mem!ers. $n this


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sense, every channel mem!er is dependent on all others and must think carefullya!out the ripple effects of any price increase.

=.What is the role of a distri!utor in the 5istri!ution 3hannel?ans- % distri!utor is an intermediary entity !eteen a the producer of a product andanother entity in the distri!ution channel or supply chain, such as a retailer, avalue-added reseller 0C%/ or a system integrator 07$. "he distri!utor performssome of the same functions that a holesaler does !ut generally takes a moreactive role.

%t a minimum, distri!utors handle payment and procurement !ut, unlikeholesalers, their roles can !e much more complex. 2or example, vendors that lack the means to !uild out a channel program !y themselves often outsource that ork

to distri!utors. 5istri!utors also fre(uently take a more proactive approach ineducating resellers a!out ne products, through such activities as presales training,road shos, and demos on !ehalf of vendors. 5istri!utors may provide servicesaround the procurement process, such as contract negotiation, marketing forresellers and 7$s, and arrantees. $ncreasingly, distri!utors also host netorkoperations centers 0 N63s.

%lthough the specific entities and order involved can vary, the supply chain ordistri!ution channel involving a distri!utor is generallyH vendor to distri!utor,distri!utor to reseller or 7$, reseller or 7$ to end customer.

=F.'o ill you evaluate a 5istri!utor?ans- %s e have seen, distri!utor is very important part of the hole 2M3)distri!ution channel so e need to o!serve extra care hile appointing adistri!utor. 5istri!utor is appointed ith a long term vision in a territory, in asegment andor in a product range. /ight selection of the distri!utor is veryimportant to achieve the o!ective of achieving market leadership in the territory.


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5istri!utor 7election


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Prior %xperience


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"hese criteria give general idea of important factors for udging. Each criterion isevaluated !ased on detail ork and udged !ased on re(uirements.

or

%t a minimum, consider these (ualities hen evaluating a distri!utorH

•


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!.*ulk *reaking H *uying the product in large (uantities and selling them to retailers insmaller (uantitites.

c.WarehousingH Aooking after the storage of the goods.

d."ransportationH "he holesaler may enter into agreements ith the company totransport their goods to the retailers.

e.3redit and risk takingH "hey undertake the risk of providing credit to retailers.

91.What are the essential characteristics of retailing?

ans-a.5irect interaction ith customersH "he retailer acts as the final link !eteen theorganisation and its customer. "he retailer knos his customer !etter than anyone. 'eeven suggests the customer hat to purchase and allos him credit facilities toencourage fre(uent !uying !ehaviour in the customer.

!.7mall purchasesH "he customer purchases goods in small lots from the retail stores.7o there are fre(uent visits to the retail store !y the customer.

c.$nstrument of marketing communicationH via hich information a!out the product isdisseminated to the needy customers.

9:.What are the functions of retailing?ans-

"he functions of retailing include H

a.7orting H"he items are arranged in order !y the retailers so that the customers are a!le to locateand pick up their needed goods easily.

!.7torageH "he retailer holds stocks of goods and there!y meets the day-to-day needs of the

consumer.

c.3hannels of communicationH "he retailer spreads !y ord-of-mouth communication, valua!leinformation to the customers a!out the product.

d."ransportationH Noadays, small grocery stores are undertaking the ork of door deliverorders in case of dura!le goods. or


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What are the Functions of a Retailer?

./ uying:

% retailer !uys a ide variety of goods from different holesalers after estimatingcustomer demand. 'e selects the !est merchandise from each holesaler and

!rings all the goods under one roof. $n this ay, he performs the tin functions of !uying and assem!ling of goods.

0/ Storage:

% retailer maintains a ready stock of goods and displays them in his shop.

1/ Seing:

"he retailer sells goods in small (uantities according to the demand and choice ofconsumers. 'e employs efficient methods of selling to increase his sales turnover.

4/ &rading and Packing:

"he retailer grades the goods hich are not graded !y manufacturers andholesalers. 'e packs goods in small lots for the convenience of consumers.

2/ (isk-+earing:

% retailer alays keeps stock of goods in anticipation of demand. 'e !ears the riskof loss due to fire, theft, spoilage, price fluctuations, etc.

E/ !ransportation:

/etailers often carry goods from holesalers and manufacturers to their shops.

7/ inancing:

7ome retailers grant credit to customers and provide the facility of return orexchange of goods. $n some cases, home delivery and after sale service are

provided !y retailers.

F/ Saes promotion:


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% retailer displays goods. 'e carries out pu!licity through shop decoration,indo display, etc. 'e maintains direct and personal contacts ith consumers. 'e

persuades consumers to !uy goods through personal selling.

G/ %nformation:

/etailers provide knoledge to consumers a!out ne products and uses of old products. "hey advise and guide consumers in !etter choice of goods. "hey also provide market information to holesalers and manufacturers.

or

Meaning and Definition of (etaier/

"he ord retailer has !een derived from the 2rench ord +/etail hich means to sell in small(uantities, rather than in gross. % retailer is a person ho purchases a variety of goods in small(uantities from different holesalers and sell them to the ultimate consumer. 'e is the last link inthe chain of distri!ution from the producer to the consumer.

*"aracteristics

"he folloings are some of the essential characteristics of a retailerH

• 'e is regarded as the last link in the chain of distri!ution.

• 'e purchases goods in large (uantities from the holesaler and sell in small (uantity to

the consumer.

• 'e deals in general products or a variety of merchandise.

• 'e develops personal contact ith the consumer.

• 'e aims at providing maximum satisfaction to the consumer.

• 'e has a limited sphere in the market.

unctions

/etailers perform a num!er of functions. "hese areH

• "he retailer !uys a variety of products from the holesaler or a num!er of holesalers.

'e thus performs to functions like !uying of goods and assem!ling of goods.


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• "he retailer performs storing function !y stocking the goods for a consumer.

• 'e develops personal contact ith the consumers and gives them goods on credit.

• 'e !ears the risks in connection ith


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=. 'e is regarded as an important link !eteen the holesaler and the consumer.

9. 'e creates demand for the products !y displaying the goods to the consumers.

9#.What do you understand !y 6rgani;ed "rade?

ans-

9=.What do you mean !y 6utlet mapping?ans-

99.What do you mean !y 6utlet classification? 'o does it help?

Saes orce Management:

9B.What is sales management?ans-For an organisation, at the end of the day, the product must be sold. No sales means noprots and no prots means no business! So this in turn depends upon the quality of thesales force. The sales force of an organisation needs to be properly selected, trained,developed and managed so as to be able to reach out to and gain a wider customerbase and to retain the eisting customers. This activity relating to the sales force isnown as sales management. Sales management entails deciding upon the salesterritory, determing the composition og the sales force and sales organisation. or

7ales management can involve any of the folloing activitiesH 01 formulation of sales strategy through development of account management policies, sales force compensation policies, salesrevenue forecasts, and sales plan, 0: implementation of sales strategy through selecting, training,

motivating, and supporting the sales force, setting sales revenue targets, and 0# sales forcemanagement through development and implementation of sales performance, monitoring, andevaluation methods, and analysis of associated !ehavioral patterns and costs.

Functions:

0i 7ales research and planning.

0ii 5emand creation.

0iii 7ales costs and !udget.

0iv


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"hese functions differ from company to company according to their si;e and the nature of their products.

Importance of Sales Management:

7ales management has gained importance to meet increasing competition and the need for

improved methods of distri!ution to reduce cost and to increase profits. 7ales management todayis the most important function in a commercial and !usiness enterprise.

9D.What are the key aspects of sales management?ans-

The ey aspects of sales management are"

a.#eciding the sales territory" This allocates the sales quota for the individual saleseecutive and denes his boundary within which he is to wor. Thus the con$ictbetween two sales eecutive is also avoided.

b.#etermining the si%e of the sales force" This depends upon the si%e of the targetmaret. &ccordingly the activities that the sales eecutive has to perform is listed outand the time taen for such activities is also estimated. The number of calls that he mayhave to mae at a certain point of time is also analysed. Finally the number of the salesforce is decided upon.

9.What is sales (uota? Explain.ans-

The sales eecutives are given certain targets to be fullled within a given period oftime. This is called sales quota. The sales quota so ed can vary according to theorganisation ob'ectives.

They may be assigned a certain volume of goods say ())) units in a year

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