8.

Marketing Management

1. What are different 'P's of marketing? 2

Ans: The four Ps are:

• Product: The product aspects of marketing deal with the specifications of the
actual goods or services, and how it relates to the end-user's needs and wants.
The scope of a product generally includes supporting elements such as
warranties, guarantees, and support.
• Pricing: This refers to the process of setting a price for a product, including
discounts. The price need not be monetary - it can simply be what is exchanged
for the product or services, e.g. time, energy, psychology or attention.
• Promotion: This includes advertising, sales promotion, publicity, and personal
selling, branding and refers to the various methods of promoting the product,
brand, or company.
• Placement (or distribution): refers to how the product gets to the customer; for
example, point of sale placement or retailing. This fourth P has also sometimes
been called Place, referring to the channel by which a product or services is
sold (e.g. online vs. retail), which geographic region or industry, to which
segment (young adults, families, business people), etc

Additional P’s

• People: Any person coming into contact with customers can have an impact on overall
satisfaction. Whether as part of a supporting service to a product or involved in a total
service, people are particularly important because, in the customer's eyes, they are
generally inseparable from the total service. As a result of this, they must be
appropriately trained, well motivated and the right type of person. Fellow customers
are also sometimes referred to under 'people', as they too can affect the customer's
service experience, (e.g., at a sporting event).
• Process: This is the process(es) involved in providing a service and the behavior of
people, which can be crucial to customer satisfaction.
• Physical evidence: Unlike a product, a service cannot be experienced before it is
delivered, which makes it intangible. This, therefore, means that potential customers
could perceive greater risk when deciding whether to use a service. To reduce the
feeling of risk, thus improving the chance for success, it is often vital to offer potential
customers the chance to see what a service would be like. This is done by providing
physical evidence, s
2.Explain the term marketing. Also distinguish between marketing and selling. [5]

Ans: Marketing is an organizational function and a set of processes for creating,

communicating and delivering value to customers and for managing customer relationships in
ways that benefit the organization and its stakeholders..

MARKETING SELLING

1. Marketing advertises a product. 1. Selling associates with the

selling of finished product by
2. Marketing theory have to flow customers.
2. No theory has to flow.
3. Main aim to know the needs of
customer. 3. It aim to sell the product to
customer and acquire
4. Marketing is done by company maximum profit
and manufacture.
4. Wholesalers, dealer etc involved
5. Marketing is a huge concept. in selling.

5. Selling is a part of marketing.

3. 'Marketing research is the milestone of marketing strategy.' Discuss 6

Ans: Marketing research is the milestone of marketing strategy. For a marketing plan to be successful, the
mix of the four "Ps" must reflect the wants and desires of the consumers or Shoppers in the target market.
Trying to convince a market segment to buy something they don't want is extremely expensive and seldom
successful. Marketers depend on insights from marketing research, both formal and informal, to determine
what consumers want and what they are willing to pay for. Marketers hope that this process will give them a
sustainable competitive advantage. Marketing management is the practical application of this
process. The offer is also an important addition to the 4P's theory.

The four Ps are:

• Product: The product aspects of marketing deal with the specifications of the
actual goods or services, and how it relates to the end-user's needs and wants.
The scope of a product generally includes supporting elements such as
warranties, guarantees, and support.
• Pricing: This refers to the process of setting a price for a product, including
discounts. The price need not be monetary - it can simply be what is exchanged
for the product or services, e.g. time, energy, psychology or attention.
 • Promotion: This includes advertising, sales promotion, publicity, and personal
selling, branding and refers to the various methods of promoting the product,
brand, or company.
• Placement (or distribution): refers to how the product gets to the customer; for
example, point of sale placement or retailing. This fourth P has also sometimes
been called Place, referring to the channel by which a product or services is
sold (e.g. online vs. retail), which geographic region or industry, to which
segment (young adults, families, business people), etc

4. Distinguish between advertising and sales promotion. On what basis you suggest
the build up of advertising budget. [7]

Ans:
5. What is marketing mix? [4]

Ans: The major marketing management decisions can be classified in one of the following
four categories:
• Product
• Price
• Place (distribution)
• Promotion
These variables are known as the marketing mix or the 4 P's of marketing. They are the
variables that marketing managers can control in order to best satisfy customers in the target
market. The marketing mix is portrayed in the following diagram:
The Marketing Mix

Product Place

Target
Market

Price Promotion
The firm attempts to generate a positive response in the target market by blending these four
marketing mix variables in an optimal manner.

Product
The product is the physical product or service offered to the consumer. In the case of
physical products, it also refers to any services or conveniences that are part of the offering.
Product decisions include aspects such as function, appearance, packaging, service,
warranty, etc.

Price
Pricing decisions should take into account profit margins and the probable pricing response
of competitors. Pricing includes not only the list price, but also discounts, financing, and other
options such as leasing.

Place
Place (or placement) decisions are those associated with channels of distribution that serve
as the means for getting the product to the target customers. The distribution system
performs transactional, logistical, and facilitating functions.
Distribution decisions include market coverage, channel member selection, logistics, and
levels of service.

Promotion
Promotion decisions are those related to communicating and selling to potential consumers.
Since these costs can be large in proportion to the product price, a break-even analysis
should be performed when making promotion decisions. It is useful to know the value of a
customer in order to determine whether additional customers are worth the cost of acquiring
them.
Promotion decisions involve advertising, public relations, media types, etc.

6. Define the term price. Explain various methods of pricing.

[10]

Ans: Pricing
Pricing refers to the amount of money exchanged for a product. This value is determined by
utility to the consumer in terms of money and/or sacrifice that he is prepared to give for it.

Objectives
• Definite sales volume

• Achieve profit
• Larger market share
 • Maintain market share
• Eliminate competition
• Advantages of mass production

Factors influencing price-determination

• Production and distribution costs

• Substitute goods available

• Normal trade practices
• Fixed prices
• Reaction of distributors
• Reaction of consumers
• Nature of demand:
o Elastic
o Inelastic
• Form of market:
o Perfect competition
o Monopolistic competition
o Monopoly
o Oligopoly
o philosophy

Steps to determine price

• Determine market share to be captured

• Set up price strategy

• Estimate demand
• Evaluate competitors' reactions
7. What is meaning and scope of marketing research? What are the main steps
involved in marketing research? Discuss. [9]

Ans: Marketing research is the function that links the consumer, customer, and public to the
marketer through information used to identify and define marketing opportunities and
problems; generate, refine, and evaluate marketing actions; monitor marketing
performance; and improve understanding of marketing as a process. Marketing
research specifies the information required to address these issues, designs the
methods for collecting information, manages and implements the data collection
process, analyzes, and communicates the findings and their implications
Scopes of marketing research are:
1. Define the problem
2. How will you collect the data that you will analyze to solve your problem
3. Select a sampling method
4. How will we analyze any data collected?
5. Decide upon a budget and a timeframe
6. Conduct the analysis of the data
7. Check for errors
8. Writing final report
The role of marketing research in managerial decision making is explained further using the
framework of the DECIDE model:
D —- Define the marketing problem
E —- Enumerate the controllable and uncontrollable decision factors
C —- Collect relevant information
I —- Identify the best alternative
D —- Develop and implement a marketing plan
E —- Evaluate the decision and the decision process

The DECIDE model conceptualizes managerial decision making as a series of six steps. The
decision process begins by precisely defining the problem or opportunity, along with the
objectives and constraints.[3] Next, the possible decision factors that make up the alternative
courses of action (controllable factors) and uncertainties (uncontrollable factors) are
enumerated. Then, relevant information on the alternatives and possible outcomes is
collected. The next step is to select the best alternative based on chosen criteria or measures
of success. Then a detailed plan to implement the alternative selected is developed and put
into effect. Last, the outcome of the decision and the decision process itself are evaluated.

8. What are the functions performed by distribution channels. [7]

Ans: Functions of a Distribution Channel
The main function of a distribution channel is to provide a link between production and
consumption. Organizations that form any particular distribution channel perform many key
functions:
Information Gathering and distributing market research and intelligence -
important for marketing planning
Promotion Developing and spreading communications about offers
Contact Finding and communicating with prospective buyers
Matching Adjusting the offer to fit a buyer's needs, including grading,
assembling and packaging
Negotiation Reaching agreement on price and other terms of the offer
Physical distribution Transporting and storing goods
Financing Acquiring and using funds to cover the costs of the distribution
channel
Risk taking Assuming some commercial risks by operating the channel (e.g.
holding stock)
9. What are the benefits and limitations of interactive marketing for a business? [4]

Ans:
Benefits:
• Customers Satisfaction.
• Convenience.
• Good Communication.
• Good Customer relation

Limitation:
• Quality
• Production
• Number of Consumer
• Product cost
• Demand for product.
• Finance

10. What is Marketing Management? List the main tasks of marketing management in
21st Century. [6]

Ans: Marketing management manages the activities of marketing such as identifying and
meeting human and social needs etc to achieve goal and objectives of marketing.

The main tasks of marketing management are:

 Define the problem

 How will you collect the data that you will analyze to solve your problem
 Select a sampling method
 How will we analyze any data collected?
 Decide upon a budget and a timeframe
 Conduct the analysis of the data
 Check for errors
 Writing final report