MARKETING MANAGEMENT

Section A

1. Green marketing is the marketing of products that are presumed to be environmentally

preferable to others .It incorporates a broad range of activities, including product modification,
changes to the production process, sustainable packaging as well as modifying advertising. It is
also called Environmental marketing or Eco-marketing. It consists of marketing products and
services based on the environmental factors or awareness.
Green marketing refers to the process of selling products and/or services based on their
environmental benefits. Such a product or service may be environmentally friendly in itself or
produced in an environmentally friendly way, such as: Being manufactured in a sustainable
fashion.
2. Pull Blend or Pull promotional blend is one in which impersonal sales efforts are given the
greatest emphasis-purpose is to pre-sell the goods to the final consumers so that they may
demand for the product at the retail level of distribution.-consumers will demand the product to
the retailers-retailers to wholesalers and wholesalers to the producers-spend more on
advertising and sales promotion, rather than on personal selling.
3. Convenient goods are the goods bought frequently and immediately by the customers with
minimum shopping efforts .Eg. Groceries, News papers, Soaps, Cigarettes etc.-Purchase cannot
be postponed or they are not purchased much in advance of consumption time-3 types- staple
goods[regularly purchased]-impulse goods [purchased without planning or search efforts]-
emergency goods goods[purchased for meeting urgent needs]
4. Advertisement copy is a creative presentation of advertising message to make impact on the
audience-running matter that forms the text of the advertisement-It may be the written matter,
spoken words, pictures, labels, designs, headlines, sub heads,-etc.
5. Persuasive advertising is aimed to persuade people to purchase a product now, even though it
is not actually needed-helps to build brand image or to offset competitors advertising.
6. Perceived value pricing is a method of pricing under which the buyers perception value is
considered as the key to pricing- cost of production is not taken in to consideration.
7. Product warranty is an obligation of the producer and seller to stand behind the product and
to assure the buyer that he will derive certain services and satisfaction from the product-must
be clear, unambiguous and meaningful-an important selling point and a means of product
differentiation.[warranties are stipulations attached to the main purpose of the contract-a
collateral agreement].
8. FMCG-Fast Moving Consumer Goods-also known as consumer packed goods.-have quick
turnover at relatively low cost-consumers put less thought in to the purchase of FMCG-Absolute
profit per unit is relatively smaller-cumulative profit will be larger as total volume of sales is
higher-include frequently purchased goods like toiletries, soaps, cosmetics, teeth cleaning
products, shaving products, detergents-glass ware, batteries, paper products, plastic goods,
pharmaceuticals, consumer electronics, packed food products, drinks etc.
9. Virtual marketing-also known as viral marketing-an online marketing technique which involves
creating an infectious excitement about the product, so that people pass on information about it
through email, social networking sites and any other form of on-line net work-Virtual marketing
induces websites or users to pass on a marketing message to other sits or users-creates visibility
and effect of messages
10. HMA—Horizontal Marketing System refers to a channel arrangement in which two or more
companies at one level join together to follow a new marketing opportunity-companies work
together and combine their capital, production capabilities and marketing resources[Eg. the
case of Coco cola and Nestle that formed a joint venture to market ready to drink coffee and
tea].
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Section B
11. E-tailing means retailing through internet-consumers can shop from their homes or offices using
personal computers to interact with the retailers through the internet-newest development in
non store retailing—e-tailor maintain a website-,requiring high speed personal computers and
sophisticated software-hold no inventory-eg.Amazon.com
12. Principles of CRM-
 Treat customer individually-Professionalism
 Acquire and retain customer loyalty through personal relationship-Loyalty
 Select good customer instead of bad customers based on lifetime value-Life
time value

13. Features of good advertisement copy-to bridge the gap between the advertiser and the readers
Advt copy -
 Should be Imaginative but never misleading
 Must be Reasonable but never dull
 Should reflect the personality of the advertiser in terms of quality
 Have a personal appeal
 Must be of good salesmanship
 Must command action
 Should be descriptive, narrative and convincing
14. Sales promotion vs Advertising

Sales promotion Advertising

 Develops a favorable purchase decision
 Premiums, coupons, discounts, contests
etc are the methods used
 Short term technique to know the
performance of a new product or arrest
decline in sales
 Plays role in the transaction phase
 Develops a favorable consumer
attitude
 Press, TV Radio etc are the media of
advertising
 Creates a good image of the
company for a long term or short
term
 Plays role in the pre and post
transaction phase
15. Product modification-the process of making improvement in the existing product by changing
its quality, size, form or design-to suit the changing conditions/change in fashion-to increase
sales or to attract the customers-satisfy the additional needs of the buyers- upgrading or
downgrading the quality of a product to suit the market of rich and poor-makes product
attractive by changing the shape,colour or design-meeting the customer demand and social
responsibility.
16. Product mix-assortment of different product types-composite products offered for sale by a firm
or business unit-full list of all products offered for sale by a firm-three dimensions of product
mix-width-depth-consistency.-3 aspects to be considered-sales growth-sales stability and profits.
17. FOB Pricing-Free On Board pricing- may be FOB origin-buyer has to bear cost of transit or FOB
destination-cost of transit is included in the selling price-a method of geographical pricing
charging cost of transportation or distribution.
18. Market logistics involves planning, implementing and controlling the physical flow of materials
and finished goods from the point of origin to the point of use to meet customer requirements
at a profit.[Philip Kotler]
19. Reminder advertising –a type of advertisement adopted by companies when they visualize that
their products are moved to maturity and saturation stages or when sales are declining-
advertising to keep the product name before the public and uses soft sell advt which uses
merely the name as a reminder- eg. Coco cola, Bata, Limca, etc
20. Penetration pricing-fixing a low price to just to gain entry in to the market-attract customers by
offering low price ,discounts and other incentives-when the customer accepts the product and
the firm gains a reasonable market share, the firm withdraws the incentives and rises the price
step by step to earn a reasonable profit-the practice of fixing a low price for a new product for
capturing the market.
21. Objectives of market positioning
 To create a distinctive place of a product or service in the minds of potential customers
 To provide a competitive edge to a product or service by conveying the attractiveness of the
product or service.
 To place an intangible service within a more tangible frame of reference
 To study the positive moves and responses of the competitors to take appropriate action
 To give the target market the reason for buying its services and then design the whole strategy
 To provide guidelines for the development of marketing mix with each element being consistent
with the positioning
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Section C
 22. Consumer behavior –Meaning-Process
Meaning-the decision process and physical activity that individuals engage in when evaluating,
acquiring, using or disposing the goods and services-includes all psychological, social and
physical behavior of potential customers.
Process-
 Need recognition
 Information search or product awareness
 Evaluation of alternatives
 Purchase decision-Post purchase reaction

23 .Criteria for market segmentation-

 Identity-identify the members of the segment

 Accessibility-segments must be accessible
 Responsiveness-segment must react to changes
 Size-segment must be reasonably large enough to be a profitable target
 Measurability-possibility to measure the changing behavior pattern of consumers.
 Nature of demand-different quantities demanded by each segment

24.Features of services-

 Intangibility
 Inseparability
 Perishability
 Heterogeneity/Variability
 Customer participation/co-operation
 Ownership

25. Promotion and Selling

 Promotion is a broad term including a variety of activities like advertising ,publicity,

personal selling, sales promotion, publicity etc
 Ultimately intended for increasing sales volume
 Important instrument for lubricating the marketing efforts
 Selling refers to he transfer of ownership in goods from seller to the buyer
 It does not include advertising or other demand creating methods

[Sometimes the term promotion is used as a synonym for selling]

26. Different types of geographical pricing-

 FOB Pricing-Free On Board pricing- may be FOB origin-buyer has to bear cost of transit or FOB
destination-cost of transit is included in the selling price-a method of geographical pricing
charging cost of transportation or distribution
  Zone Pricing-price in one zone varies from the other
 Base point Pricing-charges transportation cost from the basic point to the buyers location

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Section D

27.Product Life Cycle-

Meaning

PLC means the different stages and competitive environment through which a product passes during its
life span-also termed as product market life cycle-different stages in the sales history of a product-

Different phases or stages are-

 Introduction-first stage-also called pioneering stage or development stage

 Growth-market acceptance stage
 Maturity-intense competition
 Saturation-sales is constant
 Decline –declining sales
 Abandonment-product becomes out of date

Advantages

 Makes management cautious and enables to take steps like product modification, pricing
strategies, changing style, quality etc.
 Company can prepare effective product plan
 Helps to formulate future plans by re pricing, new packing, finding new uses, adoption of latest
technologies etc.

28-Various steps in new product development-

 Idea generation
 Screening the ideas
 Business analysis
 Concept testing
 Developing the product
 Timing the product-Product testing-Test marketing
 Commercialisation

29.Modern trends in marketing-

1. Direct marketing
 2. E-Marketing-Internet Marketing-Cyber Marketing-E-tailing
3. Tele Marketing
4. Relationship Marketing
5. Concept Marketing
6. Virtual/Viral Marketing
7. FMCG Marketing
8. Demarketing
9. Remarketing
10. Green Marketing
11. Synchro Marketing
12. Services Marketing

30.Various types of marketing channel-

1.Distribution channel for consumer goods

 Producer-Consumer
 Producer-Retailer-Consumer
 Producer-Wholesaler--Retailer -Consumer
 Produce-r Agent-Retailer--Consumer
 Producer- Agent-Wholesaler- Retailer-Consumer

2.Distribution of Industrial goods

 Producer-Industrial user
 Producer-Industrial distributor -User
 Producer-Agent- User
 Producer -Agent -Industrial distributor-User

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