Sinhgad Institute of Management and computer Application

Narhe
Note – Any concepts from the following may be asked for Subjective
functional test.

A. Marketing Concepts

1. Human Needs.
2. Wants.
3. Demands.
4. Products.
5. Value, Cost & Satisfaction.
6. Exchange, Transactions & Relationship.
7. Markets.
8. Marketing.
9. Marketer.
10. The Production Concept.
11. The Product Concept.
12. The Selling Concept.
13. The Marketing Concept.
14. The Societal Marketing Concept.
15. Marketing information system.
16. Micro environment.
17. Macro environment.
18. Consumer markets.
19. Business markets.
20. Competitors.
21. Sales forecasting
22. Product Differentiating
23. Product positioning.
24. New product development & launching.
25. Product Life cycle.
26. Market leader.
27. Market challenger.
28. Market follower & nicher.
29. Global Marketing
30. Marketing mix.
31. Product mix decisions.
32. Product line decisions.
33. Brand decision.
34. Packaging decisions.
35. Annual plan control.
36. Profitability control.
37. Efficiency control.
38. Strategic control.
39. SWOT analysis.
40. Mass marketing.
41. Product – variety marketing.
42. Target marketing.
43. Niche marketing.
44. Individual marketing.
45. Market segmentation.
46. Undifferentiated.
47. Concentrated.
48. Differentiated.
49. Geographic segmentation.
50. Demographic segmentation.
51. Psychographic segmentation.
52. Behavioral segmentation.
53. Market positioning.
54. Product differentiation.
55. Service differentiation.
56. Personnel differentiation.
57. Image differentiation.
58. Over positioning
59. Confused positioning
60. Doubtful positioning
61. Five levels of product.
62. Convenience goods
63. Shopping goods.
64. Specialty goods
65. Unsought goods
66. Brand decisions –
67. Brand name
68. Brand mark
69. Trade mark
70. Copyright
71. Brand extension decision.
72. Line extension decision.
73. Multi brand decisions.
74. New Brand decision.
75. Brand repositioning decision –
76. Introduction stage of PLC
77. Growth.
78. Maturity.
79. Decline.
80. Rapid skimming strategy.
81. Slow skimming strategy.
82. Rapid penetration strategy.
83. Slow penetration strategy.
84. Stable maturity.
85. Decaying maturity.
86. Market modification.
87. Product modification.
88. Marketing mix modification.
89. Idea generation techniques.
90. Idea screening – Drop error. Go error.
91. Product idea
92. Product concept
93. Product image
94. Concept development –
95. Concept testing –
96. Functional test –
97. Consumer testing –
98. Market testing –
99. Consumer adoption process.
100. Marketing channels.
101. Marketing channel function & flows functions –
102. Number of channel levels –
103. Channel design decisions –
104. Intensive distribution.
105. Selective distribution.
106. Extensive distribution.
107. Exclusive distribution.
108. Channel management decisions –
109. Coercive power.
110. Legitimate power.
111. Referent power.
112. Reward power.
113. Expert power.
114. Order processing.
115. Ware housing.
116. Inventory.
117. Transportation.
118. Advertising –
119. Direct marketing –
120. Sales promotion –
121. Public relations & publicity –
122. Personal selling –
123. Selective attention.
124. Selective distortion.
125. Selective recall.
126. Message content.
127. Rational appeal.
128. Emotional appeal.
129. Moral appeal.
130. Message structure.
131. Affordable method.
132. Percentage of sales method.
133. Competitive parity method.
134. Objective & task method .
135. Push v/s Pull strategy.

The core concept of Marketing

• Marketing is a social & managerial process by which individuals & groups

obtained what they need & want through creating, offering & exchanging
products of value with others.
• Human Needs.
It is a state of felt deprivation of some basic satisfaction.
• Wants.
These are desires for specific satisfiers of these deeper needs.
• Demands.
These are wants for specific products that are backed by an ability & willingness
to buy them.
• Products.
These are anything that can be offered to satisfy a need or a want.
o The importance of physical product lies not so much in owing them as in
obtaining the services they render.
• Vehicle of services.
1. Person.
2. Place.
3. Activity.
4. Organization.
5. Ideas.
• Value, Cost & Satisfaction.
1. Product value 1. Monitory cost
2. Service value 2. Time cost
3. Personnel value 3. Energy cost
4. Image value 4. Psychic cost
• Exchange, Transactions & Relationship.
 Exchange is one of the four ways people can obtain products.
a. Self production.
b. Coercion.
c. Begging.
d. Exchange.
• Exchange is the act of obtaining a desired product from someone by offering
something in return.
• Five conditions of exchange.
1. At least two parties.
2. Each party has something that might be of value to the other party.
3. Each party is capable of communication & delivery.
4. Each party is free to accept or reject the offer.
5. Each party believes it is appropriate or desirable to deal with the other party.
• Transactions – These are basic unit of exchange. A transaction consists of a trade
of values between two parties.
• Dimensions of transactions.
1. At least two things of value.
2. Agreed upon conditions.
3. A time of agreement.
4. A place of agreement.
• Transaction v/s Transfer
o The process of trying to arrive at mutually agreeable terms is called Negotiation.
o Transaction marketing, Relationship marketing, Marketing network.
• Markets.
It consists of all potential consumers sharing a particular need or want who might
be willing & able to engage in exchange to satisfy that need or want.
• Marketing.
It means Working with markets to actualize potential exchanges for the purpose
of satisfying human needs & wants.
• Marketer.
It means someone seeking a resource from someone else & willing to offer
something of value in exchange.
1. The Production Concept.
• The production concepts holds that customers will favor those products that are
widely available & low in cost. Managers of production oriented organizations
concentrate on achieving high production efficiency & wide distribution
coverage.
2. The Product Concept.
• The product concept holds that consumers will favor those products that offer the
most quality, performance or innovative features. Managers in these product
oriented organizations focus their energy on making superior products &
improving them over time.
3. The Selling Concept.
• The selling concept holds that consumers, in left alone, will ordinarily not buy
enough of the organizations products. The organization must therefore undertake
an aggressive selling & promotion effort.
4. The Marketing Concept.
• The marketing concept holds that the key to achieving organizational goals
consists in determining the needs & wants of target markets & delivering the
desired satisfaction more effectively & efficiently than competitors.
5. The Societal Marketing Concept.
• The societal marketing concept holds that the organization’s task is to determine
the needs, wants & interests of target markets & to deliver the desired satisfaction
more effectively & efficiently than competitors in a way that preserves or
enhances the consumer’s & society’s well being.

Marketing Management Functions.

• Marketing management is the analysis, planning, implementation & control of
programs design to bring about desired exchange with target audience for the
purpose of mutual or personal gain. It relies heavily on adoption & co-ordination
of product, price, promotion & place for achieving effective response.
1. It is a management process & includes analysis, planning, implementation &
control of activities.
2. It is purposive activity which aims at bringing about desired exchange which may
be of goods & services.
3. It can be practiced by either the seller or buyer whoever seeks to stimulate the
exchange process.
4. It may be carried on for personal or mutual gain.
5. It stresses the adaptation & co-ordination of several factors like product, price,
promotion & place to achieve the effective response.
• Functions of marketing management.
o Sales & market analysis.
o Determination of marketing goals.
o Sales forecasting & marketing budget.
o Formulation of marketing plan, policies & procedures.
o Evolving appropriate marketing mix & programs.
o Organizing all marketing functions.
o Assembling of necessary marketing resources such as marketing personnel,
marketing finance & physical facilities like storage & transport.
o Effective marketing communication through personal selling, advertising, sales
promotion.
o Active participation in product planning & development to ensure best relations
between product & customer needs.
o Wholehearted co-operation in introducing innovations, new products, new
markets, new processes.
o Proper control & co-ordination of all marketing functions.

Marketing Planning Process.

• The marketing process consists of analyzing marketing opportunities, researching
& selecting target market, designing marketing strategies, planning marketing
programs, & organizing, implementing & controlling marketing efforts.
1. Analyzing market opportunities.
o Marketing information system.
o Micro & macro environment.
o Consumer markets.
o Business markets.
o Competitors.
2. Researching & selecting target markets.
o Measure & forecast attractiveness of market.
o Selecting & targeting market segment.
3. Designing marketing strategies.
o Differentiating & positioning strategy.
o New product development & launching.
o Product strategy at different PLC.
o Strategy on the basis of leader, challenger, follower & nicher.
o Strategy according to global opportunities & challenges.
4. Planning marketing programs.
o Marketing strategy must be transformed into marketing programs. This is
accomplished by making decisions on marketing expenditures, marketing mix &
marketing allocation.
o Marketing mix is the set of marketing tools that the firm uses to pursue it’s
marketing objectives in the target market.
1. Product mix, line, brand, packaging decisions.
2. Marketing of services.
3. Setting price, adapting price, initiating & responding price changes.
4. Nature of marketing channels, channel design decisions, channel management
decisions, channel dynamics, channel co-operation, conflict & competition.
5. Retailing, wholesaling & physical distribution.
6. Communication process.
7. Advertising management.
8. Direct marketing, sales promotion & public relation.
9. Designing sales force, managing sales force, principles of personnel selling.
5. Organizing, Implementing & controlling marketing efforts.
o Marketing organization & implementation.
o Marketing control.
1. Annual plan control.
2. Profitability control.
3. Efficiency control.
4. Strategic control.

Nature & content of marketing plan.

1. Executive summery.
Brief overview of proposed plan for the quick management skimming.
2. Current marketing situation.
Relevant background data on market, product competition, distribution & macro
environment.
a. Market situation.
o Size & growth of the market.
o Customer needs, perception & buying behavior
b. Product situation.
o Sales, prices, contribution margin & net profits.
c. Competitive situation.
o Size, goals, market share, product quality marketing strategy.
o their intention & behavior.
d. Distribution situation.
o Size & importance of each distribution channel.
e. Macro environment situation.
o Demographic, economic, technological, political, legal, socio-cultural trends.
3. Opportunities & issue analysis.
Identify the main opportunities threats, strength/weakness & issue facing product.
4. Objectives.
Defines goals the plan wants to reach in the areas of sales volume, market share &
profit.
a. Financial objectives.
o Rate of return, net profits & cash flow.
b. Marketing objectives.
o Sales revenue, volume, awareness, number of distribution outlets.
5. Marketing strategy.
Presents the broad marketing approaches that will be used to achieve plan’s
objectives.
a. Target market.
b. Positioning.
c. Product line.
d. Price.
e. Distribution outlets.
f. Sales force.
g. Service.
h. Advertising.
i. Sales promotion.
j. R&D
k. Marketing research.
6. Action programs.
Answers what will be done? When will it be done? Who will do it? How much
will it cost?
7. Projected profit & loss statement.
Forecasts the expected financial outcomes from the plan.
8. Controls.
Indicates how the plan will be monitored.

Environmental Appraisal.
• The aggregate of all conditions, events & influences that surround & affect it.
o External & Internal environment.
o SWOT analysis.
 Characteristics of Environment.
o Environment is complex.
o Environment is dynamic.
o Environment is multifaceted.
o Environment has far reaching impact.
 Components of external environment.
A. Social environment.
o Demographic.
o Socio-cultural concern.
o Socio-cultural attitudes.
o Family structure & changes.
o Role & position of men, women & children in family & society.
o Educational levels.
B. Political environment.
o Political system.
o Political structure.
o Political processes.
o Political philosophy.
C. Economic environment.
o Economic stage.
o Economic system.
o Economic policies.
o Economic planning.
o Economic indices.
o Infrastructural factors.
D. Regulatory environment.
o Constitutional framework.
o Licensing, monopolies, foreign investment & financing industry policies.
o Policies – Distribution, pricing & control
o Policies – Import & export.
o Other policies – Public sector, SSI, Development of backward area, control of
environment, consumer protection.
E. Market environment.
o Customer factor – Needs, Buying behavior, satisfaction.
o Product factor – Features, Life cycle, differentiation, substitutes.
o Marketing intermediaries.
o Competitors.
F. Supplier environment.
o Cost availability of raw material & components.
o Cost availability of finance for implementing project.
o Cost availability of energy used in production.
o Cost availability of human resource.
o Cost availability of plant & machinery.
o Cost availability of infrastructure.
G. Technological environment.
o Source of technology.
o Technology development.
o Impact of technology on human being.
o Communication & infrastructural technology.
H. International Environment.
o Globalization, it’s process, content & direction.
o Global economic forces, organizations, blocks.
o Global trade & commerce it’s process & trends.
o Global financial system, sources of financing & accounting standards.
o Geopolitical situations, equations, alliances & strategic interest of nations.
o Global demographic pattern & shapes.
o Global human resources.
o Global information system.
o Global technological & quality system.
o Global market & competitiveness.
o Global legal system.
o Global management.
 Factors to be considered for environmental scanning.
o Events.
o Trends.
o Issues.
o Expectations.
 Approaches to Environmental scanning.
1. Systematic approach.
2. Ad hoc approach.
3. Processed form approach.
 Sources of information for environmental scanning.
1. Documentary or secondary sources.
2. Mass media.
3. Internal sources.
4. External agencies.
5. Formal studies.
6. Spying & surveillance.
• Appraising Environment.
 Factors affecting environmental appraisal.
o Strategist related factors.
o Organization related factors.
o Environment related factors.
 Identifying environmental factors.

 Structuring environmental appraisal.

 Environment threat & opportunity profile.
 Environmental sectors.
o Market.
o Technological.
o Supplier.
o Economic.
o Regulatory.
o Political.
o Socio-cultural.
o International.

Market Segmentation.
• Small opportunities are often the beginning of great enterprises.
• Stages of marketing strategy.
o Mass marketing.
o Product – variety marketing.
o Target marketing.
o Niche marketing.
o Individual marketing.
1. Market segmentation consists of taking the total heterogeneous market for a
product & dividing it into several submarket or segments, each of which tends to
be homogeneous in all significant aspects.
2. Market segmentation is the subdivision of a market into homogeneous subsets of
customer where subset may conceivably selected as a market target to be reached
with distinct marketing mix. The power of this concept is that in an age if intense
competition for the mass market individual seller may prosper through creatively
serving specific market segment whose needs are imperfectly satisfied by mass
market offering.
• STP Process.
A. Market segmentation.
1. The general approach to segmenting the market.

2. Markets, market segment & niches.

3. Pattern of market segmentation.
o Homogeneous preference.
o Diffused preference.
o Clustered preference.
 Three options.
o Undifferentiated.
o Concentrated.
o Differentiated.
4. Market segmentation procedure.
a. Survey stage.
o Attributes & their important ratings.
o Brand awareness & brand rating.
o Product usage pattern.
o Attributes towards the product category.
o Demographics, psychographics, media graphics.
b. Analysis stage.
c. Profiling stage.
Demographics, psychographics, media habits.
5. Bases for segmenting consumer markets.
a. Consumer characteristics.
i. Geographic segmentation.
o Region.
o City or metro.
o Density – Urban, suburban, rural.
o Climate.
ii. Demographic segmentation.
o Age.
o Family size.
o Gender.
 o Family life cycle.
o Income.
o Occupation.
o Education.
o Religion.
o Race.
o Nationality.
iii. Psychographic segmentation.
o Social class.
o Life style.
o Personality.
b. Consumer responses.
i. Behavioral segmentation.
o Occasion – regular, special.
o Benefits.
o User status – Nonusers, ex-users, potential users, first time & regular.
o Usage rate.
o Loyalty status.
o Readiness stage.
o Attitudes towards the product
6. Bases for segmenting business market.
a. Demographic.
o Industry – which industry should we focus on?
o Company size – what size companies should we focus on?
o Location – what geographical areas should we focus on?
b. Operating variables.
o Technology – what customer technology should we focus on?
o User/Nonuser status – Should we focus on heavy, medium, light users or
nonusers?
o Customer capabilities – Should we focus on customers needing many or few
services?
c. Purchasing approaches.
o Highly centralized or decentralized purchasing organization – purchasing function
organization.
o Engineering dominated, financially dominated – power structure.
o Strong relationships or go after most desirable companies.
o Leasing, service contracts, system purchase, sealed bidding – General purchase
policies.
o Companies seeking qualities, service, price – purchasing criteria.
d. Situational factors.
o Urgency – needing quick & sudden delivery or service.
o Specific application – certain application or all application.
o Size of order – large or small orders.
e. Personal characteristics.
o Buyer sellers similarity – companies whose people & values are similar to ours.
o Attitude towards risk – risk taking or risk avoiding companies.
o Loyalty – companies that show high loyalty to their suppliers.
• Developing customer segment profile.
 Requirements for effective segmentation.
o Measurable.
o Substantial.
o Accessible.
o Differentiable.
B. Market targeting.
3. Evaluating the attractiveness of market segment.
a. Segment size & growth.
b. Segment structure & attractiveness.
The company has to appraise the impact of long run profitability of five groups.
o Threat of intense segment rivalry.
o Threat of new entrants.
o Threat of substitute products.
o Threat of bargaining power of buyer.
o Threat of bargaining power of supplier.
c. Company objectives & resources.
• Attractiveness of the segment.

4. Selecting the market segment.

• Large firms can cover whole market by two ways.

o Undifferentiated marketing.
o Differentiated marketing.
 Following costs are likely to be higher.
o Product modification cost.
o Manufacturing cost.
o Administrative cost.
o Inventory cost.
 Caution.
o Over segmentation.
o Counter segmentation or broadening customer base.
• Additional considerations in evaluating & selecting segments.
a. Ethical choice of market targets.
b. Segment interrelationships & super segments.
o On cost, performance & technology.
o Synergy as raw materials, manufacturing facilities or distribution channels.
o Segment by segment invasion plan.
C. Market positioning.
• Positioning is the act of designing the company’s image & value offer so that the
segment’s customers understand & appreciate what the company stands in
relation to it’s competitors.
o How can the firm identify sources of potential competitive advantage?
o What are the major differentiating attributes available to firm?
o How can the firm choose an effective positioning in the market?
o How can the firm communicate it’s positioning to the market?
5. Tools for competitive differentiation.
a. Product differentiation.
o Features – are characteristics that supplement the product basic functioning.
o Performance quality – refers to the levels at which the product primary
characteristics operate.
o Conformance – is the degree to which the products design & operating
characteristics come close to the target standards.
o Durability – is a measure of the products operating life.
o Reliability – is a measure of the probability that a product will not malfunction or
fail within a specified time period.
o Reparability – is a measure of the ease of fixing a product that malfunction or
fails.
o Style – describes how well product looks & feels to the buyer.
o Design – integrated force – all foregoing qualities are design parameters.
b. Service differentiation.
o Delivery – speed, accuracy & care attending delivery.
o Installation – work done to make a product operational in it’s planned location.
o Customer training – training to customer employees.
o Consulting service – refers to data information, systems & advising services at
free or price to buyers.
o Repair – quality of repair service available to buyer.
o Miscellaneous – warranty, maintenance & patronage awards.
c. Personnel differentiation.
o Competence – employees skill & knowledge.
o Courtesy – friendly, respectful & considerate.
o Credibility – performance of service with consistency & accuracy.
o Responsiveness – responding quickly to requests & problems.
o Communication – understanding customer & communicating clearly.
d. Image differentiation.
 Identity v/s image.
o Identity the ways that company aims to identify itself to it’s public.
o Image is the way the public perceives the company.
o Symbols – logo, object, color, sound/music.
o Written & audio-visual media – advertisement.
o Atmosphere – physical space.
o Events – types of events sponsored.
6. Developing a positioning strategy.
A difference is worth establishing to the extent that it satisfies the following
criteria.
o Importance – valued benefit to buyer.
o Distinctive – not offered by others or offered in a more distinctive way.
o Superior – superior to others to obtain same benefit.
o Communicable – communicable or visible to buyer.
o Preemptive – not easily copied by competitors.
o Affordable – afford to pay for the difference.
o Profitable – profitable to introduce the difference.
• Differentiation is the act of designing a set of meaningful differences to
distinguish the company’s offer from competitors offer.
• Positioning is the act of designing company’s offer & image so that it occupies a
distinct & valued place in the target customer’s mind.
• How many differences to promote?
o Single benefit.
o Double benefit.
o Triple benefit.
• Unique selling proposition.
• Avoid positioning errors.
o Under positioning – vague idea about the brand.
o Over positioning – too narrow image about the brand.
o Confused positioning – confused image of the brand.
o Doubtful positioning – hard to believe brand’s claim.

• Which differences to promote.

o Company’s standing, competitor’s standing, importance of improving,
affordability & speed, competitor’s ability.

• Communicating the company’s positioning.

Marketing Mix.
• It was James Culliton – The American Marketing expert, who coined the
expression, marketing mix & describe marketing manager as a mixer of
ingredients.
• Marketing mix variable.
A. Product variable.
o Product line & range.
o Design, quality, features, models, style, appearance, size, warranties of product.
o Packaging type, material, size, appearance & label.
o Branding & trademark.
o Merchandising.
o Service – Presales, After sales.
o New products.
B. Place variable.
o Channel distribution.
o Type of intermediaries.
o Channel policy & design.
o Location of outlets.
o Channel remuneration.
o Dealer principle relations.
o Physical distributions – Transportation – Ware housing – Inventory level – Order
processing.
C. Price variable.
o Pricing policy.
o Levels of prices.
o Levels of margins, discounts & rebates.
o Terms of delivery.
o Payment terms.
o Credit terms.
o Installment facility.
o Resale price maintenance.
D. Promotion variable.
o Personal selling – Objectives – Level of efforts – Quality of sales force – Cost
level – Level of motivation.
o Advertisement – Media mix – Budget – Allocation & programs.
o Sales promotion efforts – Display contest – Trade promotions.
o Publicity & public relations.
 Marketing mix & environment variable.
A. Customer variable.
o No. of customers.
o Location of customers.
o Purchasing power of customers.
o Buying behavior & habits of purchase.
o Personality traits & attitudes.
o Lifestyle & needs.
o Brand awareness & brand loyalty.
B. Competition variable.
o Structure of the industry.
o Nature & intensity of competition – Buyer – Seller market.
o No. of competitors, size, capacity & territory of operation.
o Products & services offered by the competitors.
o Competitors sales level in each market segment / product.
o Competitor’s strength, weaknesses – Product – Cost – Logistic – Channel – Sales
force – Promotion & marketing organization.
o Competition from substitute product.
C. Trade variable.
o Structure of the trade.
o Type of intermediaries, number & strength.
o Trade practices.
o Services provided by the trade.
o Motives & attitudes of intermediaries.
o Extent of sophistication of the trade.
D. Environment variable.
o Level of technology.
o Government regulations on products, prices & distributions.
o Controls on trade practices.
o Economic conditions in the country.
o Geography & climate.
o Culture & tradition.
o Law & politics.
o Attitude of public & press.

Product
• What is a product?
• How can company built & manage it’s product mix & product lines?
• How can a company make better brand decisions?
• How can packaging & labeling be used as marketing tool?
• Product.
Product is anything that can be offered to market for attention, acquisition, use or
consumption that might satisfy a need or a want.
• Products that can be marketed include.
o Physical goods.
o Services.
o Persons.
o Places.
o Organizations.
o Ideas.
• Five levels of product.
 Core benefit – fundamental service or benefit that the customer is really buying.
 Generic product – basic version of the product.
 Expected product – a set of attributes & conditions that buyers normally expect &
agree to.
 Augmented product – additional services & benefits that distinguish the company
offer from competitors.
o Packaging – services – advertising – customer advice – financing – delivery
arrangement – warehousing & other things that people value.
 Potential product – possible evolution.
• Product hierarchy.
 Need family – The core need that underlies the product family – transportation.
 Product family – All the product classes that can satisfy a core need with
reasonable effectiveness – air, water, road.
 Product class – A group of products within the product family recognized as
having certain functional coherence – LCV, HCV.
 Product lines – A group of products within the product class that are closely
related because they function in a similar manner or are sold to the same customer
groups, are marketed through same type of outlets or fall within given price range
– two & three wheelers.
 Product type – those items within product line that share one of the several
possible forms of the product – scooter, motorcycle.
 Brand – The name associated with one or more items in the product line.
 Item – A distinct unit within brand or product line distinguishable by size, price,
appearance, attributes.
• Product classification.
A. According to their durability or tangibility.
 Non durable –Durable – Service.
B. Consumer goods classification.
 Convenience goods – goods usually bought frequently, immediately with
minimum efforts.
o Staple – Impulse – Emergency.
 Shopping goods – goods that the customer in process of selection & purchase
characteristically compares on suitability, quality, price & style.
 Specialty goods – goods with unique characteristics or brand identification for
which significant group of buyers are habitually willing to make special
purchasing efforts.
 Unsought goods – goods that consumer do not know about or knows about but
does not normally think of buying.
C. Industrial goods classification.
 Materials & parts – goods that enter the manufacturers product completely.
o Raw material – Farm – Natural.
o Manufacture materials & parts.
 Component material – component parts.
 Capital items – Long lasting goods that facilitate developing & or managing
finished product. - Installation.
 Supplies & services – short lasting goods that facilitate developing or managing
finished product – operating supplies – maintenance & repair items – services.
• Product mix decision or product assortment.
It is the set of all product lines & items that particular seller offers for sale to
buyers.
• Width – Length – Depth – Consistency.
• Product line decisions –
It is a group of products that are closely related because they function in similar
manner are sold to the same customer groups are marketed to the same type of
outlets or fall within given price range.
 Product line analysis –
o Product line sales & profits.
o Product line market profile with competitors product line.
 Product line length –
o Line stretching decisions.
o Downward – Upward – Two way stretch.
o Line filling decisions.
 Line modernization decision.
 Line featuring decisions.
 Line pruning decisions.
 Individual product decisions –
Decisions on product attributes, branding, packaging & labeling & other
marketing decisions such as pricing, distribution advertising, promotion.
 Product attribute decisions –
o Product quality.
o Product features.
o Product design.
 Brand decisions –
a. Brand a name, term, sign, symbol or design or combination of them, which is
intended to identify the goods or services of one seller or group of sellers & to
differentiate them from those of competitors.
b. Brand name – that part of a brand which can be vocalized or utter able.
c. Brand mark – that part of brand which can be recognized but is not utter able such
as symbol, design, distinctive color or lettering.
d. Trade mark – a brand or part of a brand that is given legal protection because it is
capable of appropriation. A trade mark protects the seller’s exclusive right to use
brand name or brand mark.
e. Copyright – the exclusive legal right to reproduce, publish & sell the matter,
literary, musical work.
• Brand convey up to six levels of meaning –
o Attributes
o Benefits.
o Culture.
o Values.
o Personality.
o User.
• Branding advantages –
o Helps seller to process orders & trace down problems.
o Legal protection, protects unique features & coping with competitors.
o Attracting loyal & profitable set of customers.
o Segmenting the market.
o To build corporate image.
• Brand equity concept –
Brand awareness – acceptability – preference – loyalty.
 Brand equity is a higher, higher the brand loyalty, name awareness, perceived
quality, strong brand association & other assets such as patents, trade marks &
channel relationship.
• Brand decisions –
o Should a brand developed for a product.
Brand – no brand.
• Brand sponsorer decision –
o Who should sponsor the brand?
Manufacturers – Private – Mixed brand.
• Brand decisions –
 Should each product be individually or family branded?
o Individual – Blanket family – Separate family –Company or individual names.
• Brand extension decision –
 Should other product given same brand name?
o Brand extension – Line extension – No brand line extension.
• Multi brand decisions –
 Should two or more brand be developed in same product category?
o One brand or more than one brand – new brand.
• Brand repositioning decision –
 Should the brand be repositioned?
o Brand repositioning – no brand repositioning.

 Packaging & labeling decisions –

 Packaging is a activity of designing & producing the container or wrapper
for a product.
o Primary package.
o Secondary package.
o Shipping package.
o Labeling.
 Packaging uses as a marketing tool –
o Self service.
o Consumer affluence.
o Company & brand image.
o Innovational opportunities.
 Developing an effective package –
o Establishing the packaging concept.
o Decision on packet design.
o Putting through test.
⇒ Engineering test.
⇒ Visual test.
⇒ Dealer test.
⇒ Consumer test.
• Labeling –
o It identifies the product or brand.
o It grades the product.
o It describes several things for product.
o It might promote product.

Product life cycle.

• Concept of product life cycle –
The product life cycle is an attempt to recognize distinct stages in the sales history
of the product corresponding to these stages are distinct opportunities & problems
with respect to marketing strategy & profit potential. By identifying the stage
better marketing plans can be formulated.

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• Introduction –
A period of sales growth as the product is introduced in the market. Profits are
non existence because of heavy expenses of introduction.
• Growth –
A period of rapid market acceptance & substantial profit improvement.
• Maturity –
A period of slow down in sales growth because acceptance by most potential
buyers. Profits stabilized or declined because of increased marketing outlets to
defend the product against competitors.
• Decline –
The period when sales show strong downward drift & profits erode.
• Product category, product form, brand life cycle.
• Rational for the product life cycle.
o Innovators – early adopters – middle majority - laggards.
• Stages & strategies -
 Introduction stage –
a. Sales growth is slow – reasons.
o Delay in expansion of production capacity.
o Technical problems.
o Delay in obtaining distribution.
o Delay in making product available to the customer.
 o Customer reluctance to change established behavior.
b. Profits are negative or slow – reasons.
o Low sales & heavy distribution, promotion expenses.
c. High level promotion required – reasons.
o Inform potential customers of new product.
o Induce trial of the product.
o Secure distribution in retail outlets.
d. The prices tend to be higher –
o Few competitors in the market.
o Produce basic versions since market is not ready for product refinement.
o Easy way to attract buyers i.e. high income group.
o Costs are high due to relatively low output rates.
o Technology problems in productions.
o High margins are required to support high promotion expenditures.
• Marketing strategy in introduction –

A. Rapid skimming strategy –

o Large part of potential market is unaware of the product.
o Aware are eager to have the product & able to pay asking price.
o Firm faces potential competition & wants to build up brand preferences.
B. Slow skimming strategy –
o Market is limited in size.
o Most of the market is aware of the product.
o Buyers are willing to pay high prices.
o Potential competition is not imminent.
C. Rapid penetration strategy –
o The market is large.
o The market is unaware of the product.
o Most buyers are price sensitive.
o There is strong potential competition
o Unit manufacturing cost fall with the scale of production & accumulated
manufacturing experience.
D. Slow penetration strategy –
o Market is large.
o Market is highly aware of the product.
o Market is price sensitive.
o There is some potential competition.
• Growth stage –
o Rapid climb in sales.
o New competitors enter the market.
o Prices remain the same or fall slightly.
o Promotion same or slightly higher to meet competition.
o Profit increase as promotion sales ratio declines & experience curve effect.
o Growth initially accelerating then decelerating.
• Marketing strategies in growth stage –
o The firm improves product quality & adds product features & improved styling.
o The firm adds new models & flanker products.
o It enters new market segment.
o It increases new distribution coverage.
o Shifts from product awareness adds to product preference advertisement.
o It lowers prices to attract next layer of price sensitive buyers.
• Maturity stage –
1. Growth maturity –
o Sales growth starts to decline.
o No new distribution channels to fill.
2. Stable maturity –
o Most potential buyers tried the product.
o Future sales govern by population growth & replacement.
3. Decaying maturity –
o Absolute level of sales now starts to decline.
o Customers starts switching to other products & substitutes.
o Over capacity & intense competition enters niches.
o Increase R&D budget to improve product & flanker products.
o Increase advertising, trade & consumer deals.
• Marketing strategies in the maturity stage –
a. Market modification –
 Increase no. of brand users.
o Convert non users.
o Enter new market segments.
o Win competitors customers.
 Increase annual usage of brand by current brand users -
o More frequent use.
o More usage per occasion.
o New & more varied uses.
b. Product modification –
o Quality improvement.
o Feature improvement .
o Style improvement.
c. Marketing mix modification –
o Price.
o Distribution.
o Advertising.
o Sales promotion.
o Personal selling.
o Services.
• Decline stage – marketing strategy
o Identifying weak products.
o Determining marketing strategies.
o Drop decisions.
• Summery –

Developing, Testing and launching new product.

• Company can add new products by
o Acquisition
o New products.
• Company can buy other companies.
• Company can acquire selected patents from others.
• Company can buy license or franchise from others.
• Develop new products in it’s own laboratory.
• Contract with independent researcher or firm.
• New product means.
o Original product.
o Improved product.
o Modified product.
o New brands.
• Six categories of new product
o New to the world product.
o New product lines.
o Additions to existing product lines.
o Improvements in existing product lines.
o Repositioning.
o Cost reduction.
• What are the main risks in developing new product?
• What organizational structure are used in managing new product development?
• How can stages of new product development process be better managed?
• After product launch what factors affect the rate of consumer adoption & new
product diffusion?
 Factors affecting new product development.
• Shortage of important new product ideas.
• Fragmented market.
• Social & governmental constraints.
• Costliness of new product development process.
• Capital shortage.
• Faster development time.
• Shorter product life cycle.
 Effective organizational arrangement.
• Product managers.
• New product managers.
• New product committees.
• New product department.
• New product venture team.
 Stages in new product development.
1. Idea generation –
a. Sources of new product ideas –
o Customer needs & wants, lead users.
o Scientists, designers & other employees.
o Competitors.
o Sales representatives & middle-men.
o Top management.
o Other sources like inventors, universities, advertising agencies, research firms.
b. Idea generation techniques –
o Attribute listing.
o Forced relationship.
o Morphological analysis.
o Need & problem identification.
o Brain storming.
o Syntactic.
2. Idea screening –
To reduce the number of idea to an attractive, practicable.
 Company should avoid two errors –
o Drop error.
o Go error.
 Product idea rating devices.
3. Concept development & testing –
o Product idea – is a possible product that company might offer to the market.
o Product concept – is an elaborated version of idea expressed in meaningful
consumer terms.
o Product image – is a particular picture that consumer acquire of an actual or
potential product.
• Concept development –
o Who is to use this product?
o What primary benefits should be built in the product?
o What is primary occasion for this product?
• Concept testing –
o Are the benefits clear to you & believe able?
Communicability & Believe ability.
o Do you see this product as solving a problem or filling a need for you?
Need level.
o Do other products currently meet this need & satisfy you?
Gap level – Need gap score.
o Is the price reasonable in relation to the value?
Perceived value.
o Would you definitely, probably, probably not, definitely not by the product?
Purchasing tension.
o Who would use this product & when & how often will the product be used?
Usage target, purchase occasion, purchase frequency.
4. Marketing strategy development –
o The first part describes the size, structure & behavior of the target market,
planned product positioning, the sales market share & profit goals in first few
years.
o The second part outlines the product’s price, distribution & marketing budget for
the first year.
o The third part describes the long run sales & profit goals & marketing mix
strategies over time.
5. Business analysis –
 Estimating sales –
o Estimating first time sales.
o Estimating replacement sales.
o Estimating repeat sales.
 Estimating cost & profit –
o Break even analysis.
o Risk analysis.
6. Product development –
 Functional test –
Product performs safely & effectively.
 Consumer testing –
In home product placement test.
7. Market testing –
 Consumer goods market testing -
Trial, first repeat, adoption, purchase frequency.
o Sales wave research.
o Simulated test marketing.
o Control test marketing.
 Test markets –
o How many test cities?
o Which cities?
o Length of test.
o What information?
o What action to take?
 Business goods market testing –
o Product testing.
o Market testing.
 Product use test.
 Trade shows.
 Distribution display rooms.
 Control test marketing.
8. Commercialization –
 When ( timing )?
o First entry.
o Parallel entry.
o Late entry.
 Where ( geographical strategies )?
 To whom ( target market prospects )?
 How ( introductory market strategies )?
 Consumer adoption process.
1. Concept in innovation, diffusion & adoption –
o Innovation – refers to any goods, services or idea that is perceived by someone as
new.
o Diffusion – is a process as spread of new idea from it’s source of invention or
creation to it’s ultimate adopters.
o Adoption – is the decision of an individual to become a regular user of a product.
Stages – Awareness – interest – evaluation – trial – adoption.
2. Individual differences in innovativeness –
o People differ markedly in their readiness to try new products.
Innovation – early adopters – early majority – late majority – laggards.
o Role of personal influence.
3. Influence of personal characteristics on rate of adoption –
 Characteristics of innovation affects rate of adoption.
o Relative advantage.
o Divisibility.
o Compatibility.
o Communicability.
o Complexity.
4. Influence of organization buyer characteristics on the rate of adoption
–
o Organization vary in their readiness to adopt an innovation.
 Marketing channels.
• The nature of marketing channels –
Marketing channels can be viewed as sets of interdependent organizations
involved in the process of making the product or service available for use or
consumption.
1. Why are marketing channels used?
 Advantages of intermediaries –
o Lack of financial resources to carry out direct marketing.
o Direct marketing would be require many producers to become middleman for
complementary products of other producers in order to achieve mass distribution
economies.
o Producers who can afford to establish their own channels can often earn a greater
return by increasing their investment in their main business - Some producers,
however will setup a partially owned distribution system.
o The use of middleman largely boils down their superior efficiency in making
goods widely available & accessible to target market.
o Marketing intermediaries transform the heterogeneous supplies found in nature
into meaningful goods assortment desired by people.
2. Marketing channel function & flows functions –
o Information.
o Promotion.
o Negotiation.
o Ordering.
o Financing.
o Risk taking.
o Physical possession.
o Payment.
o Title.
 Flows –
o Physical flow.
o Title flow.
o Payment flow.
o Information flow.
o Promotion flow.
 Number of channel levels –
o Zero level channel.
o One level channel.
o Two level channel.
o Three level channel.
 Consumer Marketing Channels.
 Industrial Marketing Channels.

• Channel design decisions –

1. Analyzing consumer needs for service output –
o Lot size.
o Waiting time.
o Convenience.
o Product variety.
o Service backup.
2. Establishing the channel objectives & constraints –
o Product characteristics – perish able, bulky.
o Middleman characteristics.
o Competitive characteristics.
o Company characteristics.
o Environmental characteristics.
3. Identifying the major channel alternatives –
 Types of intermediaries.
o Company sales force.
o Manufacturers agent.
o Industrial distributors.
 Number of intermediaries.
o Intensive distribution.
o Selective distribution.
o Extensive distribution.
o Exclusive distribution.
 Terms & responsibility of channel members –
o Price policy.
 o Condition of sale.
o Distributor’s territorial right.
o Mutual services & responsibilities.
 Evaluating major channel alternatives.
o Economic criteria.
o Control criteria.
o Adaptive criteria.
• Channel management decisions –
 Selecting channel members.
 Motivating channel members.
o Co-operation.
o Partnership.
o Distribution programming.
 Types of powers.
o Coercive power.
o Legitimate power.
o Referent power.
o Reward power.
o Expert power.
 Evaluating channel members.
 Modifying channel arrangement.
o Adding or dropping individual channel members.
o Adding or dropping particular market channels.
o Developing a totally new way to sell in all markets.
• Physical distribution or logistic management –
Physical distribution involves planning, implementing & controlling the physical
flows of materials & final goods from point of origin to point of use to meet
customer needs at a profit.
Procurement
Suppliers --- Manufacturing --- Channels --- Customers
Physical distribution
• Major activities involved in physical distribution –
o Sales forecasting.
o Distribution planning.
o Production planning.
o Materials procurement.
o Inventory management.
o Receiving.
o In bound transportation.
o Packaging.
o In plant ware housing.
o Shipping.
o Out board transportation.
o Field ware housing.
o Order processing – Customer service.
• Main elements of distribution cost.
o Transportation cost. 37%
o Inventory carrying cost. 22%
o Ware housing. 21%
o Order processing/Customer service/ Distribution administration 20%
• Physical distribution objectives.
 Getting the right goods to the right places at right time for the least cost.
o Order processing.
o Ware housing.
o Inventory.
o Transportation.
o Organizations responsibility for physical distribution.

Promotion or communication mix.

• Advertising –
Any paid form of non personal presentation & promotion of ideas, goods, or
services by an identified sponsor.
• Direct marketing –
Use of mail, telephone & other non personal contact tools to communicate with or
solicit a response from specific customers & prospects.
• Sales promotion –
Short term incentives to encourage trial or purchase of a particular product or
service.
• Public relations & publicity –
A variety of programs designed to promote &/or protect a company’s image or
it’s individual product.
• Personal selling –
Face to face information with one or more prospective purchases for the purpose
of making sales.
1. Advertising –
o Print & broadcast advertising.
o Packaging outer.
o Packaging inserts.
o Motion pictures.
o Brochures & booklets.
o Posters & leaflets.
o Directories.
o Reprints of advertisements.
o Bill boards.
o Display signs.
o POP displays.
o Audio visual materials.
o Symbols & logos.
2. Sales promotion –
o Contest, Games, Sweep takes, Lotteries.
o Premiums & gifts.
o Sampling.
o Fairs & trade shows.
o Demonstrations.
o Exhibits.
o Low interest financing.
o Entertainment.
o Trade in allowance.
o Trading stamps.
o Tie ins.
3. Public relations –
o Press kits.
o Speeches.
o Seminars.
o Annual reports.
o Charitable donations.
o Sponsorship.
o Publications.
o Community relations.
o Lobbing.
o Identity media.
o Company magazine.
o Events.
4. Personal selling –
o Sales presentation.
o Sales meetings.
o Incentive program.
o Samples.
o Fairs & trade shows.
5. Direct marketing –
o Catalogs.
o Mailings.
o Tele marketing.
o Electronic marketing.
o Shopping.
o TV shopping.
• Communication process –
Communication model answers Who says What in What channel to Whom
with What effect.
  Selective attention.
 Selective distortion.
 Selective recall.
Likelihood of attention = Perceived reward -- Perceived Punishment
Strength Strength

Perceived expenditure of effort

• Steps in developing effective communication –

a. Identifying the target audience.
 Image analysis.
Image is the set of beliefs, ideas & impression that a person holds of an object.
1. Familiarity scale.

2. Favorability scale.

C B A
Superior Medical
Inferior
Care

Specialized Full Service

hospital
Dated Modern Facility

Impersonal Friendly Service

Small Large

Research Community
Oriented Oriented
• Semantic differentials –
o Developing a set of relevant dimensions.
o Reducing the set of relevant dimensions.
o Administering the instrument to sample respondent.
o Averaging the results.
o Checking the image variance.
 Evaluating scales ( Good / Bad qualities ).
 Potency scale ( Strong / Weak qualities ).
 Activating scale ( Active / Passive qualities ).

b. Determining communication objectives.

c.Designing a message.
1.What to say? Message content.
2.How to say it logically? Message structure.
3.How to say symbolically? Message format.
4.Who should say it? Message source.
1.Message content.
o Rational appeal.
o Emotional appeal.
o Moral appeal.
2.Message structure.
o Conclusion drawing.
o One or two sided arguments.
o Order of presentation.
3.Message format.
o Print advertisement.
 Headline – Copy – Illustration – Color.
o Radio.
 Words – Voice quality ( Speech rate, rhythm, pitch, articulation ) – Vocalization (
Pause ).
o Television.
 Addition to above body language.
4. Message source – Credibility of source.
 o Expertise.
o Trust worthiness.
o Likeability.
d. Selecting the communication channels.
1. Personal communication channels.
 Advocate channel – Company sales people.
 Expert channel – Independent experts.
 Social channel – Neighbor, friends, family members.
• Personal influence carries greater weight under following circumstances.
o Where product is expensive, risky or purchased infrequently.
o Where the product has significant social status.
• Company can take following steps to stimulate personal influence.
o Identify influential individuals & companies & devote extra efforts to them.
o Create opinion leaders by supplying certain people on attractive terms.
o Work through community influential like jockeys, presidents, etc…
o Use influential people in testimonial advertisement.
o Develop advertisement that has high conversation value.
2. Non personal communication channel.
o Media.
o Atmosphere.
o Events.
o Two step communication process.
e. Establishing total promotional budget.
 Affordable method.
 Percentage of sales method.
 Competitive parity method.
 Objective & task method ( Steps ).
o Establish market share goal.
o Determine percentage of market that should be reached.
o Determine percentage aware buyers that should be persuaded to try brand.
o Determine the no. of adding impressions per 1% trial rate.
o Determine no. of gross rating points that would have to be purchased.
o Determine the necessary advertisement budget on the basis of average cost of
buying gross rating point.
f. Deciding on the promotion mix.
I. Nature of each promotional tool.
1. Advertising.
o Public presentation.
o Pervasiveness.
o Amplified expressiveness.
o Impersonality.
2. Personal selling.
o Personal confrontation.
o Cultivation.
 o Response.
3. Sales promotion.
o Communication.
o Incentive.
o Invitation.
4. Public relation & publicity.
o High credibility.
o Off guard.
o Dramatization.
5. Direct marketing.
o Non public.
o Customized.
o Up to date.
II. Factors in setting the promotion mix.
1. Type of product market.
 Consumer goods & relative importance.
o Advertising – Sales promotion – Personal selling – Public relations.
 Industrial goods & relative importance.
o Personal selling.
o Sales promotion.
o Advertising.
o Public relations.
 Advertising function.
o Awareness building.
o Comprehension building.
o Efficient reminding.
o Lead generation.
o Legitimating.
o Reassurance.
 Personal selling function.
o Increased stock position.
o Enthusiasm building.
o Missionary selling.
2. Push v/s Pull strategy.

3. Buyers readiness stage.

Promotional Cost Effectiveness

SP

PS

Ad & P

Awareness Comprehension Conviction Ordering Reordering

4. Product life cycle stage.

5. Company market rank.

g. Measuring promotional results.

 100 Not
90 Aware
80
70 Not
60 Tried
50 Market Aware
40
Dissatisfied
30
Tried
20
10
Satisfied
0
Total Aware Trial Satisfaction

100
90
80
70 Not
60 Aware
Market
50
40
30 Not
Aware Tried Dissatisfied
20
10
Tried Satisfied
0
Total Aware Trial Satisfaction

h. Managing & coordinating the marketing communication process.

Marketing control process.

• What do we want to achieve?- Goal setting.
• What is happening?- performance measurement.
• Why it is happening?- performance diagnosis.
• What should we do about it?- corrective action.
  Types of marketing control.
A. Annual plan control.
1. Sales analysis –
Consists of measuring and evaluating actual sales in relation to sales goals.
a. Sales variance analysis –
Measures relative contribution of different factors to gap in sales performance
Variance due to price decline = (1-0.80)(3000) = 600 - 37.50

Variance due to volume decline = (1)(4000-3000) = 1000 - 62.50

1600 - 100
b. Micro sales analysis.
2. Market share analysis.
Defining & measuring market share
a. Overall market share –
Company’s overall market share is it’s sales expressed as a % of total market
sales.
b. Served market share –
As a % of total sales to it’s served market.
c. Relative market share – To top three competitor.
Company sales as % of combined sales of three largest competitor.
• These conclusions from market share analysis are subject to certain qualification.
o The assumption that outside forces affect all companies in the same ways is often
not true.
o That a company’s performance should be judged against the average performance
of all companies is not always valid.
o If new firm enter the industry then existing firms market share might fall.
o Sometimes market share decline is deliberately engineered by a company to
improve profits.
o Market share can fluctuate for many minor reasons.
• Managers must carefully interpret market share by product line, customer type,
regions & other breakdowns.
• Four components of market share movements –

Overall = Customer X Customer X Customer X Price

Market Share Penetration Loyalty Selectivity Selectivity

• Customer Penetration.
It is the percentage of all customers who buy from this company.
• Customer Loyalty.
It is the purchase from this company by it’s customer expressed as a percentage of
their total purchase from all suppliers of the same product.
• Customer Selectivity.
It is the size of average customer purchase from company expressed as a
percentage of size of average customer purchase from an average company.
• Price Selectivity.
 It is the average price charged by this company expressed as a percentage of the
average price charged by all companies.
3. Marketing expenses to sales analysis.
• Sales force to sales – 15%
• Advertising to sales – 5%
• Sales promotion to sales – 6%
• Market research to sales – 1%
• Sales administration to sales – 3%
Upper control limit.
Desired level.
Lower control limit.

4. Financial analysis.
• Rate of return on net worth.
 Profit margin.
Net profits Return on Financial

Net sales assets Leverage

Asset Turnover X
Net Sales Net Profits Total assets

Total assets Total assets Net worth

Return on
net worth
=
Net profits

Net worth
5. Customer Satisfaction Tracking.
B. Profitability Control.
1. Methodology of marketing profitability analysis
a. Identifying the functional expenses.
Selling – Advertising – Packaging – Delivery – Billing – Collection.
o Sales.
o Cost of goods sold.
o Gross Margin.
o Expenses.
o Salaries.
o Rent.
o Supplies.
o Net Profit.
b. Assigning the functional expenses to the marketing entities.
c. Preparing a profit & loss statement for each marketing entity.
2. Determining the best corrective action.
 Alternative action evaluation.
3. Direct v/s Full costing.
o Direct cost.
o Traceable common costs.
o Non traceable common costs.
C. Efficiency Control.
1. Sales force efficiency.
o Average no. of sales calls per sales person per day.
o Average sales call time per contact.
o Average revenue per sales call.
o Average cost per sales call.
o Entertainment cost per sales call.
o Percentage of orders per hundred sales call.
o No. of new customers per period.
o No. of loss customers per period.
o Sales force cost as a percentage of total sales.
2. Advertising efficiency.
o Advertising cost per thousand target buyers reached by media vehicle.
o Percentage of audience who noted, saw, associated & read most of each print
advertisement.
o Consumer opinion on the advertisement content & effectiveness.
o Before & after measurement of attitude towards the product.
o No. of enquiries stimulated by the advertisement.
o Cost per enquiry.
3. Sales promotion efficiency.
o Percentage of sales sold on deal.
o Display cost per sales dolor.
o Percentage of coupons redeemed.
o No. of enquiries resulting from demonstration.
4. Distribution efficiency.
o Inventory control.
o Warehouse location.
o Transportation modes.
D. Strategic control.
1. Marketing effectiveness rating review.
o Customer philosophy.
o Integrated marketing organization.
o Adequate marketing information.
o Strategic orientation.
o Operational efficiency.
• Marketing audit.
It is a comprehensive, systematic, independent & periodic examination of
company’s business unit’s marketing environment, objectives, strategies &
activities with a view to determine problems areas & opportunities &
recommending a plan of action to improve the company’s marketing
performance.
 Marketing audit procedure.
 Components of marketing audit.
1. Marketing environment audit.
 Macro environment.
o Demographic.
o Economic.
o Ecological.
o Technological.
o Political.
o Cultural
 Task environment
o Markets.
o Customers.
o Competitors.
o Distribution & dealers.
o Suppliers.
o Facilitators & marketing firms.
o Publics.
2. Marketing strategy audit.
o Business mission.
o Strategy.
o Marketing objectives & goals.
3. Marketing organization audit.
o Formal structure.
o Functional efficiency.
o Interface efficiency.
4. Marketing system audit.
o Marketing information system.
o Marketing planning system.
o Marketing controlling system.
o New product development system.
5. Marketing productivity audit.
o Profitability analysis.
o Cost effectiveness analysis.
6. Marketing function audit.
o Product.
o Price.
o Distribution.
o Advertising sales promotion publicity.
o Sales force.
 Marketing excellence review.
 Company ethical & social responsibility review.
SINHGAD INSTITUTE OF MANAGEMENT AND COMUTER APPLICATION
GRADING TEST
B Finance Concepts.

1) Time Value of Money

2) Discounting
3) Compounding
4) Equity Capital
5) Preference Capital
6) Debentures
7) Retained earnings
8) Cost of capital
9) Internal Rate of Return
10) Net Present Value
11) Cash Profits and Accounting Profits.
12) Capital Structure
13) Financial Risk
14) Interest Rate Risk
15) Credit Risk
16) Leverages
17) ROI
18) EVA
19) Structured Finance
20) Venture capital
21) Seed capital
22) CRR
23) Repo
24) Reverse Repo
25) Bank Rate
26) Hedging
27) SWAPS
28) Derivatives
29) Commodities
30) Forward Exchange
31) Futures
32) Purchasing Power Parity
33) Fixed Cost
34) Variable Cost
35) Operating Profit
36) Trading on Equity
37) Solvency Ratios
38) Liquidity Ratios
39) Working Capital
40) Bills receivable
41) Debt Service Coverage Ratio
42) P/E ratio
43) EPS
44) Agency Problem
45) Mutual Fund
46) Activity Based Costing
47) Inflation
48) Current Account Deficit
49) ESOPs
50) Options
51) Target Costing
52) Beta
53) Sharpe Ratio
54) Treynor’s Ratio
55) Systematic risk
56) Unsystematic risk
57) Equity Fund
58) Balanced Fund
59) Debt Fund
60) Exposure
61) Sensitivity Analysis
62) Duration
63) Dividend Payout Ratio
64) CVP Analysis
65) Consortium
66) Stock Split
67) Bonus Shares
68) Right Shares
69) Buy-back of shares
70) Exchange rate risk
71) Spread
72) Interest rate parity
73) Merger
74) Acquisition
75) Factoring
76) Letter of Credit
77) Joint Venture
78) Operating cycle
79) Spot rate
80) Tax Shield
81) Bankruptcy costs
82) Flexible budget
83) Backward integration
84) Credit rating
85) Arbitrage Process
86) Restrictive Covenants
87) Fischer’s Effect
88) Carrying Cost
89) Float
90) Direct Taxes
91) Indirect Taxes
92) Capital gains
93) Provident Fund
94) Excise Duty
95) VAT
96) Fringe Benefit Tax
97) TDS
98) Hurdle rate
99) Exchange-traded Funds
100) Jensen’s Alpha
101) Treasury Bills
102) Prospect Theory
103) Resistant level
104) Support Level
105) Yield to maturity
106) Yield curve
 C. HR concepts

Explain the concept in not more than 3 lines each:

1. personality
2. attitude
3. motivation
4. morale
5. general motives
6. frustration
7. job loading
8. job enrichment
9. conflict
10. group
11. team
12. leadership
13. recruitment
14. selection
15. separation
16. performance appraisal
17. industrial relations
18. retention
19. job
20. job analysis
21. job description
22. job specification
23. job evaluation
24. job enlargement
25. job enrichment
26. retrenchment
27. layoff
28. dismissal
29. collective bargaining
30. primary motives
31. secondary motives
32. defense mechanism
33. constructive conflict
34. destructive conflict
35. group dynamics
36. formal groups
37. informal groups
38. performance management
39. compensation
40. glass ceiling
41. outsourcing
42. e-recruitment
43. appreciative inquiry
44. training
45. development
46. induction
47. predictive index
48. industrial peace
49. strike
50. spot bonus
51. merit pay
52. fringe benefits
53. incentive/variable pay
54. perquisites
55. consumer price index
56. skill based pay
57. Broadbanding
58. QWL program
59. succession planning
60. environmental scanning
61. expectancy
62. transformational leadership
63. transactional leadership
64. ESOP
65. flexitime
66. stress
67. eustress
68. distress
69. ego state
70. transaction
71. virtual teams
72. self managed teams
73. empowerment
74. dysfunctional conflict
75. functional conflict
76. intrapersonal conflict
77. personality
78. attitude
79. values
80. perception
81. learning
82. power
83. communication
84. charismatic leadership
85. HRIS
86. coaching
87. change
88. MBO
89. on-the-job-training
90. off-the-job training
91. mentoring
92. reengineering
93. collaboration
94. organization culture
95. motivators
96. exit interview
97. employee leasing
98. behaviour
99. quality circle
100. Career management