Principles of Marketing Unit 1 Introduction

By Parimol / Principles of Marketing

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Principles of Marketing Unit 1 Introduction

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Introduction

PRINCIPLES OF MARKETING

VERY SHORT TYPES QUESTION & ANSWERS

A. Multiple Choice Questions:

1. Marketing consists of which concept?

(a) Old concept.

(b) Continuity concept.

(d) All of these.

Ans: (a) Old concept.

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2. Which concept of marketing is/are product oriented?

(a) Old concept of marketing.

(b) Modern concept of marketing.

(d) All of these.

Ans: (a) Old concept of marketing.

3. Which concept of marketing is/are customer oriented?

(a) Modern concept of marketing.

(b) Old concept of marketing.

(d) All of these.

Ans: (a) Modern concept of marketing.

4. Which concept of marketing is based on customer satisfaction key point?

(a) Modern concept of marketing.

(b) Old concept of marketing.

(d) All of these.

Ans: (a) Modern concept of marketing.

5. Marketing refers to the–

(a) Sale of product.

(b) Goods distribution.

(d) All of these.

Ans: (d) All of these.

6. Functions of marketing management consists—

(a) Determination of the marketing object.

(b) Marketing planning.

(d) All of these.

Ans: (d) All of these.

7. Which of the following factors affects to the planning of marketing programme?

(a) Demand variable.

(b) Marketing mix.

(d) All of these.

Ans: (d) All of these.

8. Which of the following steps are covered under the process of marketing programme?

(a) Settings objectives.

(b) Selection of marketing mix.

(d) Mobilization of resources.

(e) All of these.

(f) A,B,C,D &E.

Ans: (f) A,b,c,d & e.

9. Marketing mix involve

(a) Product mix.

(b) Promotional mix.

(d) All of these.

Ans. (d) All of these.

10. Sub-dividation marketing is called as?

(a) Market segmentation.

(b) Only segmentation.

(d) Allocation of marketing.

Ans. (a) Market segmentation.

11. Which of the following points is responsible for effective market segmentation?

(a) Substantially.

(b) Easy accessibility.

(e) All of these.

Ans. (e) All of these.

12. The promotion mix involves to

(a) Advertising.

(b) Personal selling.

(d) Public relation.

(e) All of these.

Ans. (e) All of these.

13.The concept of marketing mix involves a deliberate and careful choice of organization, product, price, promotion and place strategies and?

(a) Policies.

(b) Concept.

(d) All of these.

Ans. (a) Policies.

14. The choice of marketing mix depends upon

(a) The marketing environment of the organization.

(b) Marketing objectives.

(d) All of the above.

Ans. (d) All of the above.

15. Which of the following is not consistent with the marketing concept?

(a) Embraces the notion of being customer focused.

(b) Is consistent with being competition focused and making a profit.

(d) Turn away customers and customer segments that are unprofitable to serve.

Ans. (c) Serves all customer needs at all costs and the customer is always right.

16. Information from marketing research studies should be sent to individuals in all of the following functions ares except–

(a) Production personnel.

(b) Application Engineers.

(d) Marketing personnel.

Ans. (a) Production personnel.

17. The marketing manager’s internal interaction include all of the following except?

(a) Sale.

(b) Finance.

(d) Public relation.

Ans. (c) Suppliers.

SHORT TYPE QUESTIONS & ANSWERS

1. What are the 5 stages of marketing evolution? What is the first step in the evolution of marketing?

Ans. According to the Evolution of marketing Philip kotler, marketing has progressed through five stages since the dawn of the Industrial Revolution: the production era, the product era, the selling era, the marketing era and the holistic era.

The evolution of marketing theory starts with production orientation.

2. What do you mean by marketing mix?

Ans. Marketing mix refers to one of the major concept in modern marketing. According to Philip kotler “marketing mix is a set of controllable marketing variables that the firm blends to produce the response it wants in the target market”. It is the combination of four controllable variables which constitutes the company’s marketing system.

3. What is the Evolution of marketing?

Ans. Marketing evolution refers to the distinct phases that businesses have gone through as they continue to seek new and innovative ways to achieve, maintain and increase revenue through customer sales and partnership. Since the 1900s, a variety of different strategies have been employed as various industries created and refined their marketing approaches.

4. When Did the marketing discipline begin?

Ans. The answer to this question is fairly nuanced. To get a rough sense of the origins of marketing, let’s turn to the online Etymology Dictionary. The authors trace this term back to the 1560s, when it was used to describe “buying and selling, [the] act of transacting business in a Market .” That’s a pretty literal definition, but it’s a good reminder that prior to the creation of marketing concept, “marketing” still existed. It was just a pretty straightforward activity.

According to our dictionary,the first cited use of the word “marketing” in its modern business sense — the “process of moving goods from producer to consumer with [an] emphasis on advertising and sales” — comes from 1897.

While it took some time for the field to move from a product-centric approach to what we understand as a marketing orientation today, the roots of this discipline go back to the turn of the 20th century.

5. What causes marketing to Evolve?

Ans. Two central factors drive marketing evolution:

(a) Marketing technology: When the field began, illustration print advertising was one of the only feasible communication channels available to Marketers besides in-store merchandising and in-person interaction. Today, digital marketing leverages technologies ranging from multimedia text messages to email and more.

(b) Customer needs: What do consumers demand today that they didn’t yesterday? What can they afford now that was beyond their reach in the past? If you can’t keep up with your audience, your competitors definitely will.

6. What is demographic segmentation?

Ans. Demographic segmentation divides the market into smaller categories based on demographic factors, such as age, gender, and income. Instead of reaching an entire market, a brand uses this method to focus resources into a defined group within that market.

Dividing the market into smaller segments, each with a common variable, allows companies to use their time and resources more effectively. They can better understand the prospective market, and use advertising personalization to ensure the needs of the targeted group are fulfilled: This customer segmentation method is one of the most commonly used because it’s easy to acquire through census data, analytics software, consumer insights, and more. It’s also considered by many businesses to be the cheapest way to divide a target Market.

7. What is Marketing Technology and Martech? Why is Marketing Technology important?

Ans. Marketing technology, also known as MarTech, describes a range of software and tools that assist in achieving marketing goals or objectives. When a marketing team utilizes a grouping of marketing technologies, this is known as their marketing technology stack. MarTech has become a staple in digital marketing campaigns, but can also be used to optimize marketing efforts across any marketing channel.

In 2012,Gartner predicted that by 2017 CMOs would spend more on Technology than CIOs. While this claim was initially very divisive, the gap in spending between these parties has narrowed significantly over the years. This is because technology is playing an increasingly important role in marketing, especially assisting with efforts such as attribution and allocation marketing spent.

With the Martech landscape constantly evolving, marketers may be overwhelmed by which option to choose. For that reason, marketers must be sure that they are investing in marketing technology solutions that will facilitate greater growth in their organization.

8. What is the Difference between MarTech and AdTech?

Ans. MarTech may sometimes be confused with Adtech. The difference between these programs is similar to the difference between marketing and advertising. While Martech refers to technology that helps to create, communicate, and deliver offerings, adtech is strictly used to influence buyer behavior by promoting offering. For example, Customer Relationship Management (CRM) software is Martech, while social ad platform are adtech.

9. Define marketing environment?

Ans: A variety of environmental forces influence a company’s marketing system. Some of them are controllable while some others are uncontrollable. It is the responsibility of the marketing manager to change the company’s policies along with the changing environment.

10. What is sociocultural marketing?

Ans. Sociocultural forces are the influence in a society and it’s culture that result in changes in attitudes, beliefs, norms, customs, and lifestyles. Major sociocultural issues directly affecting marketers include demographic and diversity characteristics, culture values, and consumerism.

11. What are the 6 socio-cultural factors?

Ans. The key socio-cultural factors that have a major impact on the operation of the multinational companies are–

(a) culture.

(b) language.

(d) level of education.

(e) customer preferences. and

(f) the attitude of the society towards foreign and services.

12. How does socio-cultural factors affect business?

Ans. Social and cultural factors affecting business include belief systems and practices, customs, tradition and behaviors of all people in given country, fashion trends and market activities including actions and decisions.

13. What are socio cultural needs?

Ans. It includes needs in conservation society traditions, their institutes and values; following moral standards; belonging to the country, citizenship, language and traditions; protecting the motherland and national interests; being proud of the country. Nation-civil identity is the basement of socio-cultural needs.

14. What is Market?

Ans. Market refers to a place or a location where goods are bought and sold by the sellers and buyers. In simple sense, market– includes the whole of any region in which buyers and sellers are brought into contact with one another and by means of which the prices of goods tend to be equalized easily and quickly.

There are basically three concepts of market:

(a) Place concept: A market may be considered as a convenient meeting place where buyers and sellers gather for exchange of goods. e.g. spot, cash or physical market.

(b) Demand Concept: Market means a group of people having wants, purchasing power to make their demand effective and the will to spend their income to fulfil those wants.

(c) Area or Location concept: Any area providing a set of price making forces may become a market.

15. What is Marketing?

Ans. Marketing means working with markets, which in turn means attempting to actualize potential exchange for the purpose of satisfying human needs and wants. Thus marketing means identifying, anticipating and satisfying customer’s need and desires. The purpose of marketing is to create customers, place utility, time utility and possession utility. The concept of marketing states that marketing involves the production of the product acceptable to the customers and the activity which helps physical transfer and ownership from the producer to the ultimate customers.

According to Kotler and Armstrong, “Marketing is the business function that identifies customer’s needs and wants, determines which target markets the organization can serve best, and designs appropriate products, services and programmes to serve these marks.”

16. Give a brief specimen/Classification of Markets.

Ans. Classification of marketing: Market can be classified in different ways based on the criteria of geographical area, sellers positions, nature of transaction and methods of business done, volume of business transacted and the actual commodities that are dealt in, economic etc.

17. Write a short note on Marketing Mix?

Ans. Marketing mix is the mixture of the essential elements of marketing in the order to enhance satisfaction Marketing mix is the mixture of 4p’s – product, pricing, promotion and place. To attain success in marketing effort, the various components should be well co-ordinate. Marketing mix offers an optimum combination of all marketing elements so that we can achieve company goals such as profit, return on investment, sales volume and so on.

Decision regarding marketing mix forms a major aspect of implementation of the marketing concept. An effective marketing mix forms a major aspects of implementation of the marketing concept. An effective marketing mix must meet customer needs better than competitor.

18. What is Marketing Environment?

Ans. Every organization has to take an outside – inside view of its business. Continuous monitoring of the changing environment helps every business to make use of the best opportunities. Every marketing department should identify the major changes in the environment usually the marketing environment will be spinning out new opportunity, if it is properly identified.

Marketing Environment has been defined by Philip kotler as an “Environment consist of the external factors and forces that affect the company’s ability to develop and maintain successful transactions and relationships with its target customers.”

19. Write briefly about the marketing growth and future in India.

Ans. Growth and Future of Marketing in India: Marketing is recognised as one of the major problems in India business today, at least in certain key sectors of the economy where competition bis fast growing. The establishment of marketing research department by many firms in recent year, their new sales promotion methods multi media advertisement campaigns and strategies, change in distribution pattern and their emphasis on recruiting and training sales personal suggest that competition has become very stiff. Business firms realized that no matter how excellent their products they cannot sell them unless they appeal to potential customer.

Efficient marketing is essential for the well being of the country. Efficiency and productivity of marketing are directly linked with the growth and development the economy as a whole. Marketing, when effectively performed, contribute to the higher living standard, greater national prosperity and broder industrial exprension.

20. Write five differences between marketing and selling activities?

Ans. The five difference between marketing and selling activities are:

(a) Marketing is a wider business activity and selling is one aspect of marketing function.

(b) The selling activity is concerned with the transfer of goods and services while marketing function aims at the customer’s satisfaction.

(c) In selling, main emphasis is on sales maximization which ultimately leads to profit maximization but in marketing the main focus is on customer’s satisfaction.

(d) Selling activities are organized and directed by marketing department and officials, while marketing policies and strategies are directed by the top management.

(e) The efficiency and good performance of selling personnel determine the efficiency of the Marketing department. Good sales management determines the success of the whole enterprise.

21. Mention five functions involved in the process of retailing?

Ans. The five functions involved in the process of retailing are:

(a) Assembling of goods from various wholesalers or in some cases from producers directly.

(b) Selling of products in small lots according to the needs and requirements of customers.

(d) Transportation of products of different kinds from the wholesalers and storing them to maintain an uninterrupted supply of products to the customers.

(e) Assumed certain risks.

22. Write five major Marketing functions?

Ans. The five major marketing function are:

(a) Marketing research.

(b) Product planning and development.

(d) Packaging.

(e) Princing.

23. Mention five factors which are taken in time of organization of marketing department?

Ans. The five factors which are taken in time of organization of marketing department are:

(a) Size of business.

(b) Volume of sales.

(d) Trend and tendency of desirable markets.

(e) Marketing plan and programme.

24. Mention the major instrument of marketing mix in the hands of management?

Ans. The major instrument of marketing mix in the hands of management are:

(a) Product-mix: Its shape, design, characteristics, utility, style, brand, package and warrant.

(b) Promotion Mix: Methods of communicating with consumers through personal selling, social contact, advertising, publicity, etc.

(c) Price-mix: Policies regarding pricing, discounts, concession, etc.

(d) Place-mix: Policy regarding outlets for sales channels of distribution, location and layout of stores, etc.

25. Define marketing?

Ans. Marketing has been defined in many ways. According to Paul Mazur, “It is the delivery of a standard of living to the society”.

Prof. Malcolm Me Nair developed this definition into the creation and delivery of a standard of living. The ancient authors considered it as a part of production. But now-a-days, it is defined in managerial context. From the managerial point of view, marketing is a dynamic process through which a business enterprise tries to meet the needs of its environment. In the words of Cundiff and still-

‘Marketing is the term used to describe collectively those business functions most directly concerned with the demand stimulating and demand-fulfilling activities of the business enterprise.’

P. Kotler defines marketing as the set of human activities directed at facilitating and consummating exchange. The essence of marketing is exchange of products and transactions to satisfy human wants or needs. All business activities assisting and promoting the exchange function and included in marketing.

26. Define marketing management?

Ans. Marketing management is a process of ascertaining consumer needs, converting them into products or services and then moving the products on services to the final consumer or used to satisfy such needs and wants of specific customer segment or segments with emphasis on profitability ensuring the optimum use of the services available to the organization. According to the Institute of Marketing, England, Marketing management is the creative management function which promotes trade and employment by assessing consumer weeds and initiating research department to meet them. It coordinates the resources of production and distribution of goods and services, determines and directs the nature and fields of the total efforts required to sell profitably by maximum production to the ultimate user.

LONG TYPE QUESTIONS & ANSWERS

1. What is the Evolution of marketing? What Are the Different Stages in the Evolution of marketing? Explain.

Following are the four different stages in the marketing evolution:

(a) Production orientation.

(b) Sales orientation.

(d) Relationship orientation.

(a) The production Era: Products Develop from the primordial soup, The Industrial Revolution set the stage for modern Marketing. All of the right ingredients were amassed, resulting in marketing as we now know it: the promotion of mass-produced consumer products.

Accordingly, early marketing efforts assumed a production orientation. The working theory was that customers simply needed to be informed about what goods were available to them. After all, you can’t buy something if you don’t know it exists.

(b) The sales Era: Species Diverge and Brands Emerge in Marketing, Leveraging a production orientation is fine if you’re pretty much the only game in town. From the 1930s onward, though, it became increasingly rare that any company would permanently enjoy a competitor-free environment. So, in response to the pressures of natural selection, business developed unique adaptations. This resulted in two core innovations of modern Marketing: the central importance of brand identities and an emphasis on the selling orientation.

(c) The Marketing Era: Intelligent Adaptations Focus on Meeting Customer Needs, The development of a marketing orientation represented something of a sea change. While traditional marketing had focused on simply getting products to customers and convincing them to buy, this new approach was different. Marketers were driven to better understand consumers’ needs, concerns and designs. Onlythen could businesses hope to truly make an impact. By the 1980s, customers were in charge.

(d) The Relationship Marketing Era: Customers and Businesses Coevolve To Create Cooperative Societies, Today, it’s common practice for many businesses to employ a relationship orientation to marketing. As a marketing concept, an approach that prioritizes relationships is focused on encouraging customer retention and loyalty as well as continued interaction with the brand. Digital marketing channels make it easy to deliver re-engagement incentives to consumers, and social media campaigns make brands highly accessible. Social responsibility can also be a cornerstone of this orientation, as brands strive to be perceived as a partner in the customer’s quest to create a more equitable society.

2. Why is demographic segmentation in marketing si important?

Ans. Companies reduce the risk of running campaigns to uninterested consumers, which quickly increases ROI. In fact, email marketers have witnessed a760%increase in revenue by segmenting their email campaigns. Conversely, 85% of new product languages in the US fail to generate desired revenue due to poor segmentation.

In addition to better ROI, demographic segmentation allows you to:

(a) Build long-lasting customer relay: Reaching your customers on a more human level with demographic-based personalized with your brand and feel like you are an advocate for their needs, which makes them more likely to do business with you over longer periods.

(b) Improve your products and services: Having loyal customer relationships encourages you to look at your products and services in a new way. When you have a deeper understanding of your target audience, you can put yourself in their shoes to better serve them. If you develop fitness programs and know that a majority of your clients prefer the same type of program to be released, you’re more likely to make that happen.

(c) Optimize your marketing strategies: Demographic segmentation allows you to get more specific with your marketing strategies. It helps clarify your vision, have more direction with future advertising plans, and optimize your resources, time, and budget. If 85% of your clients range from 20-35 years old, this is the segment you’re going to Target. Spending your time and money on seniors would be a waste.

3. Define Demographic segmentation? Write all the important points related to Demographic segmentation variables?

(a) Age: Age is the most basic variable of them all, albeit the most important because consumer preferences continually change with age. Almost all marketing campaigns Target age-specific audiences. This variable can be viewed regarding specific age ranges or life. Cycle stages: babies, children, adolescents, adults, middle-age, and seniors. For example, many famous fashion designers have different collections to Target other age groups. They aim certain clothing lines at specific age ranges, such as a chic fashion Line at younger prospects and a more formal and elegant line at older individuals.

Age segmentation is also generation-based: baby boomers, gen X, millennials, etc. Since members within each of these individual groups were born around the same time and grew up with similar experiences, they often share similar characteristics and thought processes. Targeting baby boomers and gen X with the same offer and marketing strategy is likely to produce undesirable results because they think and act differently.

Not only do age groups and generations differ in their buying habits, but also in how they respond to advertising. They tend to have distinct ways of speaking and often spend their time on separate platforms. For example, millennials may spend most of their time on Instagram and Facebook, while seniors prefer their email inboxes.

Here’s an Instagram ad that in both age – and generations-targeted, since many millennials in their 20s and 30s use the “Wife, mom, boss” phrase:

In addition to age segmentation, Brooklyn & Barnes presumably uses gender, occupation, and family segmentation (more on these below).

(b) Gender: Men and women generally have different likes, dislikes, needs, and thought processes. For instance, few men apply makeup, and most women don’t wear boxers. Also, women typically do most of the household grocery shopping and are more likely than men to donate to charitable causes. These are all key factors to consider when creating a campaign.

They created this ad specifically for women (hence the women’s swimsuits and the “for women” in the description). They purposely targeted them on Facebook for the most engagement and click throughs.

Be careful not to assume gender stereotypes, such as considering pink s feminine color and blue a masculine color. Advertising with gender stereotypes like this could easily make your brand look sexist and cause you to miss out on or anger your Target audience.

(c) Income and occupation: If people can’t afford your product or service, there is no point in targeting them. After all, you wouldn’t promote a Mercedes or Ferrari to someone who can’t afford a used vehicle with more than 100,000miles.

(i) Income targeting lets you measure the buying power of your audience. When you know the income range of consumers, you can usually find data to support how people spend money on both the Higher and lower end of the spectrum. Many companies use this data to sell different tiers of the same product, based on income level. For instance, airlines have three classes: economy, business class, and first-class.

(ii) Occupation targeting is also important since certain resources are aimed at different industries and job titles. Take this pardot ebook display ad,for example:

Job titles are especially necessary with an account-based advertising campaign. In comparison to traditional demand gen, account-based marketing is often described as a flipped funnel approach because it inverts the process. Rather than targeting individual leads, it targets the account level. The intent is to reach highly-relevant account with the most revenue potential, so knowing occupation is integral.

(d) Ethnicity and religion: With the tremendous increase in international business and global advertising brings an increase in segmentation based on ethnicity, race, nationally, and religion. These groups have many individual cultures that come with conflicting interests, preferences, attitudes, and beliefs.This could impact both their response to marketing and their buying habits.

Consider Coca-Cola and Pepsi. Both companies advertise globally, but localize their campaigns for each country, too. The messages are entirely different, based on local customs, religions, nationality,etc.

(e) Family structure: Family makeup can be instrumental in segmentation because when a family’s dynamic changes, its needs and desires often do too. This strongly affects their buying habits and your sales process.

Single individuals tend to prioritize themselves, while newly married couples are likely prioritizing each other and their homes. Couples with several children have different needs than those who job had their first child. Large families might be more interested in low-cost household products, as compared to a couple with the same income, but without any children.

4. Distinguish between marketing and selling. Mention various objectives of marketing.

Ans: Selling: Nowadays, as the technology advances along with the quantity and quality of the goods, the art of selling the goods are also very essential. The firms which follow the selling concept believe that in order to motivate a customer to buy his product, he must be convinced by aggressive selling and promotional efforts.

Marketing: The marketing concept emerged in the mid 1950’s. The business generally shifted from a product – centered, make and sell philosophy, to a customer centered, sense and respond philosophy. The marketing concept concentrates on the need of the customers.

From the above discussion we find the following differences between selling and marketing:

Selling	Marketing
(a) Selling starts and ends with the seller.	(a) Marketing starts and ends with the consumers.
(b) Seeks to quickly convert products into cash.	(b) Seeks to convert customer ‘needs’ into products.
(c) Seller is the center of the business universe.	(c) Buyer is the center of the business universe.
(d) Views Business as a goods producing process.	(d) Views businesses as a customer satisfying process.
(e) Seller preference determines the formulation of marketing mix.	(e) Buyer determines the shape marketing mix should take.
(f) Selling is product oriented.	(f) Marketing is customer oriented.
(g) Seller’s motives dominate marketing communication.	(g) Marketing communication is looked upon as a tool for communicating the benefits / satisfactions provided by the product.
(h) Selling concept is short term perspective.	(h) Marketing concept is a long term perspective.

Marketing having the following importance/ Objectives:

(i) Marketing improves standard of living: Marketing promotes large scale production and sales which bring down the cost of production and increase the amount of profit. Lower price results in large consumption by large number of consumers which improves the standard of living at large.

(ii) It helps to utilize our natural resources: It is marketing which collects needs, wants, desires, preferences etc. Of domestic consumers and international consumers and analyze the information to produce goods and services for better satisfaction of consumers.

(iii) Marketing connect the producers and Consumers: The producer produce goods and services for the purpose of selling. In the absence of marketing process, it would have been extremely difficult for producer to find out what customers want.

(iv) It helps to provide economic stability: Good marketing system enables to maintain the price level stable by equalizing the demand and supply at various places and different period. This is possible by creating time and place utility.

(v) It provides employment opportunities: Marketing results in large scale production which in turn creates a good number employment in the production process. Thousands of people are employed to manage the retail and wholesale establishment. In our country, the business establishments ranks second to agriculture sector in providing employment opportunities.

5. What Is Demographics in Marketing? Explain all the different types of it?

Ans. Demographics are statistics that companies keep on business clients and customers. These marketing statistics may include the sizes of businesses so companies can better differentiate between small, mid-sized or large companies. But they are more commonly used to identify differences in personal attributes among consumers. There are many different types of demographic companies use for various purposes.

(a) Identification: Common demographics include age, gender, race and ethnic origin. Companies also track demographic like education, household size and occupation. Most demographics are defined or delineated by specific ranges. For example, the age demographic may divided into range such as 18 to 24; 25 to 34; 35 to 54; and 55 years and over. People within these age groups have different values. Their preferences for certain products or services may vary as well. Similarly, statisticians may divide income statistics into groups to differentiate those in the lower middle, middle and upper class.

(b) Obtaining the Data: Companies can obtain demographic information from the U.S Census Bureau.They usually list various demographics by state and city. Marketers can also obtain more localized demographic information from area or country Chambers of Commerce.These entities typically break data down by various census tracts or smaller regions in metropolitan area. Companies that want demographic data related to their industry often purchase reports from marketing research companies like Nielsen, Forrester Research or The NPD Group. These companies usually conduct regular surveys to garner this information. For example, a consumer products company may want age breakdowns on the heaviest buyers or users of laundry detergents. Businesses can obtain more company-specific data by conducting their own phone or Internet surveys. Warranty cards are another tool that can be used for collecting demographic data.

(c) Local Uses of Data: Companies use local demographic data to better define their key customers. Certain data are more relevant to various businesses. For example, a high-end woman’s specialty retailer, which offers premium or higher -priced clothing, may focus on women over 35 with income above $75,000 per year. A fast food restaurant offering children’s meals may be interested in learning the percentage of families in their area who have kids. Hence, it may start by studying household size data along with age breakouts of kids 12 and under.

(d) Market segmentation: Companies also use demographic data to identify key buying groups on a regional or national basis. For example, a small financial management firm may be interested in expanding to markets with large populations of people over 55. Hence, top management may study available data in contiguous markets first to determine where to locate the new offices.

6. What are the Essentials of Marketing Technology?

Ans. Which technology is best for Marketers to invest in is heavily dependent on who they are marketing to. For example, does your organization market products to other businesses (B2B) or to customers (B2C)? Although your organization’s market has a sizable influence on which Martech will be most effective, all marketers should consider implementing the following technologies:

(a) Marketing Attribution Software: As John Wanamaker (1838-1922), a famous US merchant said, “Half the money I spent on advertising is wasted; the trouble is I don’t know which half.” Over a century later, this dilemma has not been solved for many companies. Outdated attribution models or failing to account for both offline and online successes are causing companies to miss out on opportunities. Partnering with the right marketing attribution software can help solve this issue.

(b) Email Marketing: In his book, perennial seller, Ryan Holiday discusses the importance of email and cultivating those relationships directly with customers. Since emails are not dependent to algorithm changes or what’s trending, it’s one of the best platform to reach a target audience. Consider this: In a recent survey, more than 50 percent of US respondents admit to checking their email more than 10 times per day. Email is an effective way for brands to reach to customers.

(c) Content Management System: This technology is able to power both your website and blog. With 88 percent of consumers researching products online before purchasing, investing in a quality website is a necessity. Your website is the backbone to the rest of your digital strategy, since marketing and advertising customers will drive consumers there.

(d) Customer Experience Software: This part of the marketing technology stack should focus on making customer’s interaction with your brand better, whether that be by testing out which messaging is the most effective or personalizing their experience. This includes software involved in A/B testing.

(e) Customer Relationship Management Software: This is more common for B2B companies that focus on lead generation, but these platforms can help your company manage leads. CRMs can determine where leads are in the funnel ,and assess opportunity levels.

7. Explain all the Marketing Technology Challenges?

Ans. Implementing, maintaining, and optimizing your organization’s Martech is not a simple, streamlined process. Rather, organizations should prepare to overcome a few key challenges before they can fully realized the benefits of marketing technology.

(a) Selecting the Right Martech Platform: Choosing the right platform is difficult since selecting a platform is more than finding the right technology – it extends into finding the right partner. Integrating a new system is often a challenge, and the process of working with internal and external stakeholders to roll out technology can create unexpected hiccups.

(b) Changing Company Culture: For many organizations, changing the way marketing functions can be a big challenge. Working with colleagues to get them trained on new platforms and workflows provide a hindrance to day to day activities. As Peter Drucker said, “culture eats strategy for breakfast.” Unfortunately, changing the company culture to utilize Martech can often be a formidable obstacle for companies.

(c) Processing Too Much Data: There’s a lot of data in today’s Marketing environment. Ciphering through data to determine what is and isn’t important could be a sizable challenge for your organization. Selecting the right vendor and working together with data scientists to help analyze the vast amounts of data can help steer your marketing department in the right direction.

8. Difference between traditional and modern concept of marketing?

Ans: Following are the difference between traditional and modern concept of marketing:

Traditional Concept	Modern Concept
Traditional marketing emphasis on selling and more profit.	Modern marketing emphasis on profit as well as consumer satisfaction.
Traditional marketing starts from production and ends with sales.	But in modern marketing it includes planning, product, price, promotion, place and after-sale services.
In traditional marketing the manufacturer sells only those products which he produces & not focused on consumer preference.	But in modern marketing manufacturers analyze the consumer demand then produce.
Traditional marketing concentrates on favorable products.	But modern marketing concentrates on customer needs, wants and satisfaction.

9. Explain the nature of Marketing.

Discuss in details about the various feature of marketing.

Ans Nature of marketing is identified and described below:

(i) Dynamic and scientific process: It is a scientific process designed to plan, price, promote and distribute goods and services. It provides and uninterrupted flow of activities concerning production and distribution of goods and services to users in the manner they want.

(ii) Marketing is an economic process: It ensures exchange of goods and services in terms of money value. It transfers the goods and services creating different types of utilities. By this process, and organization becomes creative, productive and profitable in the market.

(iii) Stimulation of consumer demand: It stimulates consumer’s demand by logical pricing and influencing promotion techniques.

(iv) Analysis and forecasting: Collection, analysis and forecasting of consumers needs, wants, desires, demands, ability to pay, willingness to pay etc, are made for market survey and research.

(v) Consumers and competitors oriented: It has consumers and competitors orientation in its business planning and activities.

(vi) Planning and development of products and services: It follows the system approach in planning, organizing, controlling and coordinating its entire business as a system to achieve the overall corporate objectives.

(vii) Corporate objectives: Corporate objectives are given top preference and departmental goal act as the means to achieve corporate goals.

(viii) Planning and implementation of marketing objectives: It follows the system approach in planning, organizing, controlling and coordinating its entire business as a system to achieve the overall corporate objectives.

10. Discuss the important variables of product mix of an organization.

Ans: The Product mix has the following important variables:

(i) Product line and Product range: Product line is a group of closely related products which are able to satisfy a class of need, to be used together, to be sold to the same consumer groups. Each firm has its own product line. Product-line stands for the entire range of products manufactured by the firm. For example, LG has product-line consisting of – TV, Monitors etc. Product range on the other hand, speaks of the depth of specialization in terms of varieties based on consumer pockets and functional requirements. Thus, Sony Corporation of Japan has countless models of TV sets, video players and recorders.

(ii) Product design: The marketing decisions start with designing the product in a way which is required by the target consumer. Product design is an important factor in the sale of many products. The trend in the product appearance is away from ornamentation and leaning towards greater simplicity in form and construction. The form, the colours and the line of all the products are being planned to give greater proportion, beauty and functional utility. An effective product design can properly enhance their utility, attractiveness, ease of operation, safety and appeal.

(iii) Product package: In this age of competition, good and appropriate packaging occupies much significance. The policies pertaining to the packaging are a part of the product planning and product development program. The main function of packaging is to protect the things from dust, water, moisture, insects, etc. Good packing saves the products against perishing, loss and other damages. . Due to the packing, the movement of the products, shifting, preserving, opening, collecting and storage, become economical and easier for both the middlemen as well as the consumers.

(iv) Product quality: Establishing and control of quality standards is a basic step in merchandising. Generally, specific grades or quality standards are established for products either by agreement among the producers or by law. These product quality standards are based on factors like – colour, texture, flavour, weight, finish, appearance, size, shape, moisture and other physical features depending on the nature of the product.

(v) Product labeling: A label identity the product or brand. Labels are attached one to the product package to help the identification and provide some identity to the customer. A product level may be either descriptive, informative, grade designing or a combination of these. A descriptive lave is one that describes the contents of the package or the ingredients of the product. An informative label may include descriptive material, but it informs primarily the users how the product is made and how to use it for best results. A grade label designates the ISI standard mark to which the product conforms.

(vi) Product branding: A brand is define as a name, term, sign, symbol or special design or some combinations of these elements that is intended to identify the goods or services of one seller or a group of sellers. A brand differentiates these products from those of competitors. A brand in short is an identifier of the seller or the maker. A brand name consists of words, letters and / or numbers that can be vocalized. A brand mark is the visual representation of the brand like a symbol, design, distinctive colouring or lettering.

(vii) After-sale services: Customers are the assets of every business. Sales professionals must try their level best to satisfy customers for them to come back again to their organization. After sales service refers to various processes which make sure customers are satisfied with the products and services of the organization. The needs and demands of the customers must be fulfilled for them to spread a positive word of mouth. In the current scenario, positive word of mouth plays an important role in promoting brands and products. After sales service makes sure that products and services meet or surpass the expectations of the customers. After sales service includes various activities to find out whether the customer is happy with the products or not? After sales service is a crucial aspect of sales management and must not be ignored.

11. Discuss in details about the scope of marketing?

Highlight the different Scope of marketing.

Ans. The Modern concept of marketing has broaden the scope of marketing which naturally includes almost all the activities before and after the production function.

The scope of marketing are described below:

(I) Product policy or planning

(A) Marketing Research: It includes:

(a) Identifying the consumer requirements.

(b) Collection of data.

(d) Findings conclusions.

(B) Motivation Research: If includes motivating the consumers through advertising, keeping the prices low, etc.

(C) Test Marketing: includes testing the product in a similar area before it is launched in the market. It gives the manufacturer of a new product a foretaste of the consumer’s reactions to the product.

(II) Distribution:

Distribution can be organized through various channels:

(i) Channels of distribution:

(a) Manufacturer → Distributor → Wholesaler → Retailer → Consumer.

(b) Manufacturer → Wholesaler → Retailer → Consumer.

(d) Manufacturer → Consumer.

(ii) Transportation: This involves transferring of goods or products to the buyers by one’s own or hired transport.

(iii) Warehousing: This is a kind of arrangement made for storing goods in godowns which may be one’s own or hired.

(III) Sales planning: The sales plan of any company will be a part of the company’s marketing plan. It itself would be a part of company’s total (Corporate) plan. Sales plan helps in sales budgeting. A sales budget can be defined as the estimate of sales turnover and the likely selling expenses for the plan period, normally for a year. The sales budget serves several purposes.

Which include:

(a) Setting up of sales targets for products, territories etc.

(b) The target can be broken down on a monthly based to account for seasonality for each product, territory etc.

(d) A budget can be used for the purpose of monitoring the actual performance of the sales efforts, for identification of deviations, the causes of the same and revision of the budget, if required.

(IV) Sales management: This includes:

(a) Recruitment of a sales force or sales staff.

(b) Training and development of the sales staff.

(d) Fixing incentive for the sales staff. and

(e) Feedback about sales staff getting confidential report.

(V) Miscellaneous Marketing Activities: It includes the 4p’s of marketing mix. They are product, price, place and promotion However, of late great emphasis has begun to be laid on packaging as well.

12. Explain clearly the modern concept of marketing. Discuss its main features, benefits and Consequences?

Ans. Since industrial revolution of marketing management has undergone four stages in the marketing concept: Product – Oriented marketing, sales – oriented marketing or selling concept and now customer – Oriented marketing. The existing modern concept of marketing was introduced in marketing philosophy of objective only after 1950. Hence, it is the latest concept in marketing.

The Modern concept of marketing, i.e. customer – oriented marketing approach points out that the primary task of a business enterprise is to study needs; desires and value of the potential customers and on the basis of latest and accurate knowledge of market demand, the enterprise must produce and offer the products which will give the desired satisfaction and services. Marketing plans, policies and programmes are formulated to serve efficiently customers demand. According to William J. Stanton, “In its fullest sense, the marketing concept is a philosophy of business which states that the customer’s want and satisfaction is the economic and social justification of a Company’s existence. Consequently all company activities in production engineering and finance, as well as in marketing, and, then satisfying these wants while still making a reasonable profit”.

Marketing research and marketing information service is expected to provide adequate, accurate and latest information regarding target markets and current consumer wants as well as dealer wants to the marketing managers, on the basis of which realistic information, they will take sound decisions on any marketing problems. The entire marketing mix will be formulated on the basis of marketing reformation and research.

General Electric company of U.S.A is one of those companies which recognized and implemented this concept of marketing for the first time.The marketing officer of this Company once proclaimed, “Customers is never at fault. His satisfaction should be our first motto.” Someone has very aptly remarked, “Marketing both begin and ends with the customers. To quote some other authority, “we have to produce those goods which are demanded by people, and not which we can sell.”

Features of this Concept:

This modern concept of marketing is built upon the following premises:

(a) Customer Orientation: The essence of modern Marketing concept is that “the firm must take its marching orders from the market and it must produce what the Market needs.” All elements of business should be geared towards the customers satisfaction, corporate plans, programmes and operations must be focussed around customer needs and desires. According to Philip Kotler, “Customer is at the top of organization chart in this concept of marky.”

(b) System Approach: This concept adopts a unified view of the study of marketing. All marketing activities must be properly integrated and coordinated to accomplish a set of activities.

(c) Dual objectives: The marketing concept advocates serving the consumers and maximizing profits at the same time. These objectives, through conflicting, can be reconciled. Guaranteed route of profit is through customers satisfaction. Profits is considered as a by product of supplying what the customer wants.

(d) Marketing Information system: This Marketing concept emphasis the role of information as the key to both customer satisfaction and profitability. Custer demand can never be satisfied without integrated marketing programmers based upon adequate and accurate information about customers, customer needs and competition. Information is a vital resource in planning action control of management.

(e) A Social Approach: This marketing concept a social approach in its nature. Environmental trends like public welfare, concern for better living etc, indicate that organization would have to adopt socially responsible marketing addition to customer welfare.

Benefit of this concept:

This concept offers the following advantages:

(a) Long term success is assured to an enterprise if it recognized that the needs of the market are paramount.

(b) It enables the firm to move more quickly to capitalize on market opportunities, marketing risks can be reduced by knowing and understanding the market.

(d) Greater attention is paid to product planning and development so that marketing can become more effective.

(e) Demand side of the equation of exchange is honored more and supply is adjusted to changing demand. Hence more emphasis is given to research and innovation.

(f) Marketing system based on the marketing concept assures integrated new of business operations and indicates interdependence of different department of a business organization.

(g) Interests of the Enterprise and society can be harmonised us profit through service is emphasized.

(h) Marketing information and research is now an integral art of the marketing process and it is a managerial tool in decision making in the field of marketing.

Consequences of the concept: The customer oriented concept of marketing has an appreciable effect on the business organization. The management of company becomes market-oriented and its Marketing activity becomes cornerstone of all activities. The organization of the entire enterprise becomes market-oriented. It ensures effective utilization of resources physical as well as human. It develops consumerism which is a challenge to the management of organization. Under a market-minded firm, management has the responsibility to create value-satisfying goods and services that consumers will want to buy.

13. Define online marketing. Briefly explain the difference between online marketing and traditional marketing.

Ans: Digital marketing, also called online marketing, is the promotion of brands to connect with potential customers using the internet and other forms of digital communication. This includes not only email, social media, and web-based advertising, but also text and multimedia messages as a marketing channel. Digital marketing is any type of marketing that occurs via digital channels such as the internet, email, or mobile devices. It has grown in popularity in recent years as a result of the proliferation of digital gadgets and the advent of internet networking.

Basis	Online Marketing	Traditional Marketing
(i) Definition	Digital marketing, also called online marketing, is the promotion of brands to connect with potential customers using the internet and other forms of digital communication. This includes not only email, social media, and web-based advertising, but also text and multimedia messages as a marketing channel.	The traditional concept of marketing corresponds to the general notion of marketing, which means selling goods and services after they have been produced. The emphasis of marketing is on the sale of goods and services. Consumer satisfaction is not given adequate emphasis. Viewed in this way, marketing is regarded as production/sales oriented.
(ii) Cost	Digital marketing is a low – cost way of product promotion.	Traditional marketing costs more.
(iii) Contact	Digital marketing allows advertisers and audiences to communicate in both directions.	Traditional marketing only allows for one – way contact between the advertiser and the audience.
(iv) Trustworthy	The level of trustworthiness in digital marketing is determined by the content and the channel’s dependability.	Traditional marketing is more trustworthy because it is an old marketing method.
(v) Engagement	Digital marketing has the potential to reach a vast number of people.	Traditional marketing can only reach a small number of people.
(vi) Reach	Products can be promoted abroad through digital marketing.	Traditional marketing is restricted to certain geographical areas.
(vii) Time	Digital markets required less time.	Traditional markets required more time.

14. Discuss in detail the various importance of marketing. Explain the five major points of marketing concepts?

Explain the various importance of marketing. Explain the five major points of marketing concepts?

Ans. Marketing has attained greater significance because it directly results in the increase of national income.

Marketing having the following importance:

(A) Importance of marketing from society’s point of view:

(B) Importance of marketing from producer’s firm’s point of view:

(i) Marketing creates awareness among potential consumer and motivated people to purchase the products and services to satisfy their needs and wants. In This process, the firms generate revenue by selling the goods and services with which the firms, further product and grow.

(ii) The marketing organization provides a channel of communication between the firm and the customers. It is furnishing information about the consumers demands, tastes and preferences to the top management. This process help the firm to adjust its production schedule to suit the tastes of the consumers.

(iii) It helps the products to increase the volume of sales which force large scale production and results more profit.

From the above explanation you will be able to realize the importance of marketing in the economic development of a country.

Following are the points of Marketing concepts:

(i) Under the modern concept, marketing begins and ends with customers.

(ii) Under the modern approach, the firm takes up the responsibility on itself, to design, develop and sell itself products to suit the needs of customers. The principle of ‘Caveat vendor’ i.e. let the seller be aware operate.

(iii) Under the modern concept the firms main objective is to satisfy customer’s through the constant study of their changing needs and wants.

(iv) The modern approach has given more emphasis to research and innovation.

(v) In modern Marketing the interest of the company and the interest of the society are harmonized.

15. Discuss the criticisms of the 4 P’s Of Marketing Mix.

Ans: Following are the criticisms of the 4 P’s of marketing mix:

(i) It is completely internally focused on what the business wants. If marketing is about meeting customer needs, then surely the customer and their issues should come into the most popular framework for marketing. Can’t think of P’s? What about Purchaser, Problem and Pain?

(ii) There are winning marketing strategies and losing marketing strategies. The four P’s of the traditional marketing mix don’t make it clear what the objective of the marketing is. There is no mention of Purpose or Profit. Without confirming the purpose, how can you know that you have the appropriate mix of marketing?

(iii) Some argue that the marketing mix is focused on consumer marketing and that the Product, Price, Place, Promotion doesn’t fit so well for industrial products and services. I’m not sure I agree with that one as each P can be adapted to industrial products and services.

(iv) Others argue that the marketing mix creates subdivisions along artificial lines. Product becomes the responsibility of the product development people, pricing the responsibility of the pricing department etc.

(v) The marketing mix is very much based on the assumption that the business is pushing products out to customers. There is no interaction or feedback. It might have been fine when the producers had the marketing power but in a world of the Internet, social media and the free access to information, buyers are much better informed.

(vi) As a marketer, the thing I want to do most is to build a relationship with the customer so that they buy and buy again repeatedly. There is nothing in the marketing mix which encourages the repeat purchases on the back end which is often where the real money is made.

(vii) It is possible to break these criticisms of the marketing mix into finer points and you only have to look at the collection of P’s that could be included in a revised marketing mix to see how much is missed out.

16. Write the difference between Goods Marketing and Services Marketing.

Ans. The difference between Goods marketing and service marketing are stated below:

(i) Intangible nature: While goods are tangible, services are intangible. A manufactured goods can be wrapped up and taken home becoming the property of the purchaser. It is different in the case of services, for example, motor repairing, supplying information, offering an insurance policy etc and so on.

(ii) More concepts between customers and services personal: Few consumer good involve contact between customers and manufacturer’s employees. There is more contact in the case industrial goods, since these are often sdd directly rather than through intermediates.

In contrast, almost all services entail direct contact with the service supplier, usually in person or else by mail or telephone.

(iii) Customer involvement in production: Service operations can be divided into ‘front office’ and ‘back office’ components, customers are exposed to the former, not to the latter. In high contact services that are delivered directly to the customers –such as passenger transportation, health care, and restaurants–the front office represents a relatively large proportion of the total service operation.

(iv) Importance of the time factor: Although convenience of location is often stressed as a key success factor for many services, convenience of scheduling is of ten just as important. The service must be available when the customers want it as well as where they want it an important rationale for extending the working hours in many services businesses. A second aspect of timing concerns the duration of service delivery from initial request to final. Conclusion of the service transaction.

(v) Absence of inventories: Since a service is a deed or performance rather than a tangible item that the purchaser gets to keep, it cannot be inventories. Unused capacity in a service business is like having a running tap in a sink with no stopper. The flow is wasted unless customers are present to receive it. And when demand exceeds capacity, customers are likely to be sent away disappointed, since no inventory is available for backup.

(vi) Problems in controlling product quality and consistency: Since many services are consumed as they are produced, the final ‘assembly’ and delivery of product elements must take place under real-time conditions. Mistakes and shoddy work in the front office are likely to be noticed by the customer before they can be caught and corrected by a quality-control inspector. In contrast, there is a better chance of catching such problems in the back office or in a manufacturing plant.

(vii) Structure of distribution channels: Unlike goods, which require physical distribution channels for moving goods factory to customers, many services businesses either use electronic channels or combine the service factory retail outlet and consumption point into one.

(viii) Interaction among marketing, operations and human resources: A distribution needs to be made between the marketing function and the marketing department in a service firm. The former embraces all activities experienced by customers. The department, by contrast, is simply an organizational unit that is responsible for some of the marketing activities performed by the firm.

17. What do you mean by marketing environment? What are the different kinds of marketing environments? Explain the various forces which influence the marketing environment?

The Environmental Factors may be classified as:

(i) Internal Factor.

(ii) External Factor.

External Factors may be further classified into:

(a) External Micro Factors and.

(b) External Macro Factors.

(1) Internal Environmental Factors: A Company’s marketing system is influenced by its capabilities regarding production, financial and other factors. Hence, the marketing management/manager must take into consideration these departments before finalizing marketing decisions. The Research and Development Department, the Personnel Department, the Accounting Department also has an impact on the Marketing Department. It is the responsibility of a manager to company-ordinate all department by setting up unified objectives.

(2) External Environmental Factors:

(i) External Micro Factors:

Some of the important external micro factors are:

(a) Suppliers: They are the people who provide necessary resources needed to produce goods and services. Policies of the suppliers have a significant influence over the marketing manager’s decisions because it is laborers, etc. A company must build cordial and long-term relationships with suppliers.

(b) Marketing Intermediaries: They are the people who assist the flow of products from the producers to the consumers; they include wholesalers, retailers, agents, etc. These people create place and time utility. A company must select an effective chain of middlemen, so as to make the goods reach the market in time. The middlemen give necessary information to the manufacturers about the market. If a company does not satisfy the middlemen, they neglect its products and may push the competitor’s product.

(c) Consumers: The main aim of production is to meet the demands of the consumers. Hence, the consumers are the center point of all marketing activities. If they are not taken into consideration, before taking the decisions, the company is bound to fail in achieving its objectives. A company’s marketing strategy is influenced by its target consumer. E.g. If a manufacturer wants to sell to the wholesaler, he may directly sell to them, if he wants to sell to another manufacturer, he may sell through his agent or if he wants to sell to ultimate consumer he may sell through wholesalers or retailers. Hence each type of consumer has a unique feature, which influences a company’s marketing decision.

(d) Competitors: A prudent marketing manager has to be in constant touch regarding the information relating to the competitor’s strategies. He has to identify his competitor’s strategies, build his plans to overtake them in the market to attract competitor’s consumers towards his products. Any company faces three types of competition:

(i) Brand Competition: It is a competition between various companies producing similar products. E.g.: The competition between BPL and Videocon companies.

(ii) The Product Form Competition: It is a competition between companies manufacturing products, which are substitutes to each other E.g.: Competition between coffee and Tea.

(iii) The Desire Competition: It is the competition with all other companies to attract consumers towards the company. E.g.: The competition between the manufacturers of TV sets and all other companies manufacturing various products like automobiles, washing machines, etc.

(e) Public: A Company’s obligation is not only to meet the requirements of its customers, but also to satisfy the various groups. A public is defined as “any group that has an actual or potential ability to achieve its objectives”. The significance of the influence of the public on the company can be understood by the fact that almost all companies maintain a public relation department. A positive interaction with the public increases its goodwill irrespective of the nature of the public.

(ii) External Macro Environment:

These are the factors/forces on which the company has no control. Hence, it has to frame its policies within the limits set by these forces:

(a) Demography: It is defined as the statistical study of the human population and its distribution. This is one of the most influencing factors because it deals with the people who form the market. A company should study the population, its distribution, age composition, etc. before deciding the marketing strategies. Each group of population behaves differently depending upon various factors such as age, status, etc. if these factors are considered, a company can produce only those products which suits the requirement of the consumers. In this regard, it is said that “to understand the market you must understand its demography”.

(b) Economic Environment: A company can successfully sell its products only when people have enough money to spend. The economic environment affects a consumer’s purchasing behavior either by increasing his disposable income or by reducing it. E.g.: During the time of inflation, the value of money comes down. Hence, it is difficult for them to purchase more products. Income of the consumer must also be taken into account. E.g.: In a market where both husband and wife work, their purchasing power will be more. Hence, companies may sell their products quite easily.

(c) Ecological forces/Physical Environment or Natural Forces: Ecology is the study of living things within their environment context. In a marketing context it concerns the relationship between people and the physical environment. Environmentalists attempt to protect the physical environment from the costs associated with producing and marketing products. They are concerned with the environmental costs of consumption, not just the personal costs to the consumer. A company has to adopt its policies within the limits set by nature. A man can improve the nature but cannot find an alternative for it.

(d) Technological Factors: From customer’s point of view, improvement in technology means improvement in the standard of living. In this regard, it is said that “Technologies shape a Person’s Life”.Every new invention builds a new market and a new group of customers. A new technology improves our lifestyle and at the same time creates many problems.

(e) Social and Cultural Factors: Most of us purchase because of the influence of social and cultural factors. The lifestyle, values, believes etc. is determined among other things by the society in which we live. Each society has its own culture. Culture is a combination of various factors which are transferred from older generations and which are acquired. Our behavior is guided by our culture, family, educational institutions, languages, etc.

18. Explain the various factors affecting the Marketing Mix?

Ans. There are certain forces which vitally affect the marketing mix– They are:

(A) Factors affecting the market: The market forces which include economic, social and political factions, and the firm has no control over them.

The major forces that may affect the market can be listed below:

(i) Consumer’s Behaviour: The consumer’s behaviour is determined by motivation in purchasing, buying habits, living habits, buying power etc. Technical and socio-economic development of the society also bring changes in the consumer behaviour.

(ii) Trade’s Behaviour: This includes the behaviour of intermediaries in ‘Distribution channel’ like wholesaler and retailers. Their motivation, structure, practices and attitudes shall affect also the marketing of the goods and the Volume of sales.

(iii) Competitor’s Behaviour: Competition is another factor affecting the Ponce and demand for the product.

The major factors included in the competitors behaviour are:

(a) Size and strength of the competitors.

(b) Number of competitors.

(d) Relation of supply and demand.

(e) Product choices offered to the consumers.

(f) Their motivation and attitudes,the degree of competition on price etc.

(vi) Governments Behaviour: Government agencies also play an important and decisive role in the economic and industrial system of the country. Particularly in under developed countries like India; The policies of the Government and changes in them are beyond the control of the firm. The management should consider the government lows and policies while formulating the marketing mix.

(B) Factors Affecting the product: There are also certain other factors, which do affect the product and the marketing mix. These factors are subject to the control of the management.

The major factors affecting the product are as follows:

(i) Product planning: To identify the consumer group and to satisfy their wants in a better way, it is necessary to plan the product efficiently. It includes the types, design, quality of the product, market segmentation etc.

(ii) Branding: Volume, time and place of the sale, product research etc. Formulation of brand policies, deciding about the trademark and popular ising the brands are some of the vital aspects of brand decisions.

(iii) Pecking: The firm should also consider the packing policy of the firm after determining its objectives & economics.

(iv) Personal selling: If the firm is going to adopt the system of personal selling, it will also affect the marketing programme.

(v) Advertising: Advertising policy of the firm, its role in the programme for sales, promotion, formulation of advertisement copy, media of advertising, cost of Advertising etc. are some of the important aspects of this variable.

(vi) Sales promotion: Management should chalk out the programme for sales promotion for customers and dealers separately.

(vii) Physical Distribution: The system of physical distribution should also be decided by the marketing manager, and policies relating to warehouse, regional sales depots, transport media should be adjusted according to the marketing programme of the business firm.

(viii) Market Research: The collection of reliable date relating to markets their analysis and interpretation, etc should also be considered while formulating the marketing mix.

19. What is the marketing mix? What are the elements of marketing mix? Explain them (4 P’s)?

Ans: Marketing mix refers to one of the major concepts in modern marketing. According to Philip Kotler “marketing mix is a set of controllable marketing variables that the firm blends to produce the response it wants in the target market”. It is the combination of four controllable variables which constitutes the company’s marketing system.

Elements of marketing mix:

(i) Product.

(ii) Price.

(iii) Place.

(iv) Promotion.

Four P’s of Marketing Mix

Successful businessmen know the importance of marketing mix because they cannot design and promote their products without a marketing mix. It is a mixture of 4 P’s of marketing mix such as product, place, price and promotion. 4 P’s Of Marketing Mix:

(i) Product: Product is one of important part of marketing mix because it reflects the good or bad reputation of any organization. The products represent any business efficiently. Successful organizations always search out the buying habits of their customers and designed their products based on those buying habits in order to meet the customer’s requirements. They also design their products based on important factors such as purchasing power and geographical locations etc. They try to design products which are affordable for customers. Companies always design their products according to customer’s budget and affordability.

They do not compromise on their product quality. Some companies maintain their quality and do not compromise on price but there are some companies which produce products according to the affordability of customers. Marketers communicate with their customers directly and convince them to buy their products.

(ii) Price: It is the worth of product on which customers are agreed to buy the products. Price of the product should be according to the range of regular customers. Prices are fluctuating according to seasonal requirements. Marketers always try to satisfy their clients at any cost. If employees of the company are satisfied with their job and performance rewards, they can become an effective asset of any organization.

(iii) Place: Products always design based on geographical place because customers buy products according to their traditions and seasons. Companies which are going to spread their business networks throughout the world must visit the place where they want to open their branches. They need to study the traditions and seasonal changes of the country where they want to initialize their products.

(iv) Promotion: Promotion activities involve marketing and advertising. Promotional activities are used to create awareness about the products. Customers know about products and their specification through social marketing media. Companies adopt social marketing media in order to create awareness about their products and services. Promotional activities and techniques are important if companies initialize new products or make some changes in product’s specifications. Promotional activities include advertising, selling, public relations and sales promotions. Advertising is a paid form of promotion that grabs the attention of customers through channels or TV. It also involves relationships between customers and companies. Marketers should design products that meet customers’ needs and demands.

20. What are the causes of marketing Risk and how can it be dealt with?

Ans. Marketing Mix have the following three causes:

(A) Changes in the market conditions.

(B) Natural causes.

(I) Risk caused by changes in Market conditions: They are basically economic risks and any changes in the price will affect not only the sales but also loss of expected profit.

Such price risks may be:

(a) Time Risks: Generally prices will change over a period of time. New inventions and discoveries, income changes, exhaustion of natural resources, changes in the size and distribution of population and such other factors will bring about a change causing certain time Risks.

(b) Place Risks: Prices differ from place to place because of certain geographical conditions and demand patterns. They have influence on costs of production and distribution which affects price also. In case of perishable goods the extent of place risk will be musk more.

(c) Competition Risks: Any marketing man with vision and foresight can Service and earn profits. If he is not competitive he cannot survive and has to suffer huge loss.

(II) Risks caused from Natural factors: Losses from fire, earthquake and dete flood rioration are very serious in some business. It is more in the case of agriculture marketing. Lighting, pests, plant discase, heat, cold etc. May damage or destroy the goods.

(III) Risks from human factors: Human nature is so unpredictable and incontrollable . Risks of loss due to infidelity or dishonesty of employees, losses due to sickness, are some of the human risks customer’s bad bedts may also be a very big risk. Human risks may arise from the change in the government policies, changes in taxation, etc.

How to deal with the risk: The risk in the business can be reduced by good management, transfer of risk and absorption of risks. Some of the risks can be prevented, some can be accepted and other risks which cannot be eliminated can be shifted.

(a) Prevention of Risks: Risks may be prevented by

(i) By totally avoiding the harmful events.

(ii) By removing the uncertainty through scientific forecasting. and

(iii) By accumulating the reserve to provide for meeting the risks.

(b) Acceptance of Risks: Many concerns will maintain reserves to meet emergency situations. It helps the business to overcome any unexpected hazards.

(IV) Reduction of Risk: By conducting marketing research, intelligent forecasting can be made about the external forces. By the reorganization of the firm, it can be help in improving the financial ability and managerial skill of the organization to overcome the problems of management.

(V) Shifting of risks: There are various risks which cannot be eliminated. In such cases they be at least shifted to specialized agencies.

Some of the methods of shifting the risks are:

(a) Insurance: Business is protected by Insurance. It provides compensation against any loss or damage due to the happening of an event. It is a device by which the loss likely to be caused is spread over a number of persons who are exposed to it. It is the best method of overcoming the risk when it cannot be completely eliminated.

(b) Selling at inflated price: Certain losses can be recovered by increasing the prices of the commodities.

(c) Role of Government: In many cases the government will prescribe the minimum price for the commodities. This policy of price stabilization and price control by the government and giving of subsidies to the producers, etc are some of the means through which government can help in reducing the risk of production and traders.

(d) Heading: Changes in the price also create risks. It is a technique which is believed in avoiding the loss or to earn the profit by entering into two opposite transactions in two different markets viz, spot market and future market. Heading is widely used in stable commodity markets like cotton and grain markets.

21. What are the various elements of marketing mix?

Discuss in details about various elements of Marketing Mix?

Ans. There are four important elements in marketing mix. In a competitive situation, each will try to have its own Marketing mix as distinct from that of others. So, that it can compete effectively with the others. The four elements of marketing mix I.e. product, price and promotion.

The 4p’s may be presented in a diagram as below:

In 1988, the 4p’s concept of marketing mix was expanded by Alan J. Megrath by adding three (3) more P’s to the traditional 4p’s. He suggested (4p’s + 3p’s) = 7p’s framework special for marketing of service. The 7 P’s framework may be presented in a diagram as below:

The seven P’s of marketing mix are described below:

(a) Product: Product includes the decision regarding the product range, quality, durability, style, shape, packaging, improvement, after sales service etc.

(b) Place: Place include decision about the retail and wholesale channels of distribution and the location in which the product should be made available to the customers.

(c) Promotion: Promotion includes decision about the personal selling , advertising, publicity and the sales promotion techniques to promote and increase the sales of the product.

(d) Price: price includes decisions relating to pricing including competitive pricing, discount, concessions, government control on price and the appropriate profit margin.

In a competitive situation, each firm will have its own Marketing mix as distinct from of the others so, that it can compete effectively with others.

(e) People: people means those who are in touch with the customers. The sales people or services providers must possess adequate knowledge and skill on human behaviour and have a positive attitude.

(f) Process: It means the system or method adopted to deliver the goods or services to the customers. The process must be customer friendly. Each firm must try to have some competitive advantages over the others in the process.

(g) Physical Facilities: The physical facilities in and around the shopping area or service delivery place must be spacious neat and clean, entertaining with interior decorations. A firm or organization may also use vouchers, cards etc as an evidence of visiting the place by the customer.

The 3 p’s concepts are most important to marketing of services. All the 7p’s in marketing must back by pace, i.e. time, speed and responsiveness.

Principles of Marketing Unit 1 Introduction

Introduction

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