APRIL 2012 (ROLL NO:36-40) Q1 (a) If you are a marketing manager of consumer durable electronic company, how would

you develop 4ps for product such as mobiles? (Rahil. Roll no:39) Ans:1. Product: - It is "the thing" that will fulfill the needs of your customer. This is the most important thing in the mix, the physical product or the service that the entity is offering for sale to the public. 2. Promotion:-It plays a role in the perception the possible target audience may have about the service. There has to be a fit between the promotion and the positioning. Online marketing makes it cheaper to conduct promotions and reach as many people as possible. 3. Price: -Price is often considered a proxy for quality. This is the price or amount that the customer needs to giveaway in exchange of the product or service one is offering. Marketing strategy will need to ensure that people will get the perceived value as greater than the price they will need to giveaway. 4. Place: -It often offers a different side of value to the customer. Services are often chosen for their place utility. Closer to the customer means higher probability of purchase. It may be either online or offline, customers should be informed where the products will be available.

1.product

3.price

2.promotion

4.place

Q1 (b) Discuss features of consumer goods marketing by giving relevant examples? (rahil. Roll no 39) Ans:a) Consumer goods have large number of buyers and sellers spread over the whole country. Every individual has to purchase consumer items for meeting his regular needs. b) The market for consumers good is widespread. Every village, taluka, and district places, cities and towns are a market for consumer goods. c) Consumer goods may be durable or perishable, low priced or high-priced and necessity or luxury. Fish or bread is a perishable consumer item and it must be used quickly. Durable consumer items like TV, automobile, mixer, etc. Can be used over many years. d) The demand for consumer good is always continuous. It is a primary demand and not a derived demand. The purchases for personal consumption are made in small quantities due to regular supply and limited purchasing capacity of consumers. e) Buyers of consumer goods have limited information about the consumer items. Naturally, they are dependent on the retailers for such information. f) The market for consumer good is highly competition is among the manufacturers and also among the retailers like departmental stores and supermarkets. g) Salesmanship as well as sales promotion techniques are used extensively in the marketing of consumer items. Consumers prefer to purchase as per the information and guidance offered by the salesman. As the products are identical, modifications in the products are frequent. Sales promotion techniques at consumer level and also at the dealer lever are required. h) Marketing of consumer good is risky as the demand is elastic. Frequent changes take place in the taste and fashion of consumers. The needs and expectations also change.

OR

Q1.a. How can services be classified? (Khusboo Shah- Roll no:36) The classification schemes developed by Christopher Lovelock represent an attempt to address one of the following aspects: 1. Nature of the service Act: The service act can be considered in two-ways: a. Who or what is the direct recipient of the service, and b. The tangible nature of services. This creates four classification possibilities shown below: DIRECT RECIPIENT OF THE SERVICE Nature of service Act People Things Services directed at peoples Services directed at goods and other bodies: physical possessions: Health care Freight transportation Passenger transportation Industrial equipment repair and Beauty saloons maintenance Exercise clinics Laundry and dry cleaning Restaurants Landscaping/lawn care Haircutting Veterinary care Services directed at peoples Services directed at intangible mind: assets: Education Banking Broadcasting Legal services Information services Accounting Theatres Securities Museums Insurance Understanding the Nature of the Service Act

Tangible actions

Intangible assets

2. Type of Relationship that the services organization has with its customers: In this the prime factors which need consideration are: a. Whether or not the customer has some type of formal relationship with the provider of service, and b. Whether the service itself is provided continuously or in discrete transactions.

These considerations lend themselves to the matrix shown in figure below:

TYPE OF RELATIONSHIP BETWEEN SERVIE ORGANISATION AND ITS CUSTOMERS relationship Nature of service delivery Continuous delivery of service Membership relationship Insurance Telephone subscription College enrollment Banking Trade associations Long-distance phone calls Theatre series subscription Commuter ticket or pass No formal radio station police protection lighthouse public highway

Discrete transactions

Car rental Mail services Toll highway Pay phone Movie theatre Public transportation Restaurant Relationship with customers

3. Scope for customization and judgment in service delivery: Services are created as they are consumed. There is far more scope for tailoring the service to meet the needs of the individual customer because the customer is often actually involved in the production process. As shown in the figure below customization can proceed along at least two dimensions: a. b. The extent to which the characteristics if the service and delivery system tend themselves to customization. How much judgment customer contact personnel are able to exercise in defining the nature of services received by individual customers.

Extent to which characteristics are customized Extent to which customer Contact Personnel exercise Judgment in meeting Individual customer needs High

Low

Public transportation Routine appliance repair Movie theatre Spectacular sports Fast-food restaurant Customization and judgment in service delivery

High Professional services Surgery Taxi service Beautician Plumber Education (tutorials) Gourmet restaurant Telephone service Hotel services Retail banking Family restaurant

Low Education (large classes) Preventive health programs College food services

5. Nature of demand and supply for the service: Some service industries face steady demand for their services whereas others encounter significant fluctuations. The time perishability of service capacity creates a challenge for the service manager. This is because services cannot be produced and stored as inventory for future sale. But the extent of demand and supply imbalances varies across service industries as shown in the figure below:

Extent of demand and fluctuation over time Extent to which supply is constrained Wide Narrow Peak demand can usually Electricity Insurance be met without a major Natural gas Legal services delay Telephone Banking Hospital maternity unit Laundry and dry Policy and fire emergencies cleaning Accounting and tax preparation: Passenger transport Hotels and motels Restaurant Theatre Services similar to those above but with insufficient capacity for their base level of business

Peak demand regularly exceeds capacity

5. Method of service delivery: The method by which the service is delivered to customers could be yet another area where a change of marketing strategy could pay dividends. The factors to consider are shown in the figure below: Availability of service outlets Nature of interaction between Customer and service organization Customer goes to service organization Service organization comes to customer Single site multiple site Bus service Fast-food chain Mail delivery Emergency services Broadcast network Telephone company

Theatre Barbershop Lawn care service Pest control service Taxi Credit card company Local TV station

Customer and service organization transact at arms length (mail or electronic communication)

Method of service delivery Services with multiple sites have significant management implications for ensuring consistency and quality in offering of services. Serve delivery is of great importance to the customers overall perception of quality service.

Q1.b. IDBI is in service sector. Do you agree? Justify. (Khusboo Shah- Roll no:36) 1. A bank is an institution that deals with money and credit. Bank is a link in the flow of funds from savers to users. They provide means of payment for goods and services and provide necessary finance for the development of business and trade. Hence banks are service organizations selling banking services. 2. Marketing of banking services is concerned with product, place, distribution, pricing and promotion decisions in the changing, socio-economic and business environment. 3. The marketing activities of bank are concerned with product design strategies, place decisions, etc. It has the following main features: a) Intangibility b) Inseparability c) Variability d) Perishability. 4. Bank is one industry where there is no middlemen serving the customer. However with liberalization and globalization, middlemen are gradually emerging in the bank industry giving rise to marketing of banking services. 5. IDBI (Industrial Development Bank of India) started as a Development Bank of India in july 1964. Thereafter it became a full-service commercial bank in October, 2004. 6. IDBI provides personalized, banking and financial services to its customers. These include deposits, loans, cards, trade services, etc. 7. It also provides services like insurance, money transfer, investments etc. 8. A service is an act or performance offered by one party to another. They are economic activities that create value and provide benefits for customer at specific times. 9. The characteristics of services are: a) Intangibility: services are intangible we cannot touch them. They are not physical objects. The buyer does not have any opportunity to touch, smell, taste the service. b) Perishability: services too are perishable like labour. Service has a high degree of perishability. Here the element of time assumes a significant position. Utilized or unutilized services are an economic waste. c) Inseparability: services are generally created or supplied simultaneously. They are inseparable. For e.g., the entertainment industry, health experts and other professionals create and offer their service at the same given time.

d) Heterogeneity: this character of services makes it difficult to set a standard for any service. The quality of services cannot be standardized. The price paid for a service may either be too high or too low. Consumers rate these services in different ways e) Ownership: in the sale of goods, after the completion of process, the goods are transferred in the name of the buyer and he becomes the owner of the goods. But in case of services we do not find this. The users have only an access to services. They cannot own the services. 10. We can see that the marketing activities of a bank and that of services has similar features. Therefore we can say that banks are a part of the service sector. Hence it can be said that IDBI is in Service sector.

Name : Darshan Sheth. Roll no:- 38 Q 2 (A) Develop service marketing mix strategies for a life Insurance company like Birla Sun Life Company. Answer :Birla Sun Life Company:Its a merger between Aditya Birla group and Sun Life Financial of Canada. They have over more then 75 units all over india Products Offered: Endowment Plan:This helps the member improve returns by investing a part of their premium money in bonds and equity Money Back Plan Whole Life Plan Max New York Life:Its a multi-business operation, which has interest in Telecom services, Bulk Pharmaceuticals, health care, Life Insurance and Information Technology

Birla Sun life should develop marketing mix strategies based on these :-

A service is an act or performance offered by one party to another. Services are special kind of products. Service marketing is dominated by the 7 Ps of marketing namely:1. Product: - It is "the thing" that will fulfil the needs of your customer. This is the most important thing in the mix, the physical product or the service that the entity is offering for sale to the public.Eg:- Physical features, Quality Level, Accessories, Packaging etc 1. Price: - Price is often considered a proxy for quality. This is the price or amount that the customer needs to giveaway in exchange of the product or service one is offering. Marketing strategy will need to ensure that people will get the perceived value as greater than the price they will need to giveaway. Eg:- Discount, Allowance ,Flexibility...etc 2. Place: - It often offers a different side of value to the customer. Services are often chosen for their place utility. Closer to the customer means higher probability of purchase. It may be either online or offline, customers should be informed where the products will be available. Eg:Intermediaries, Outlet locations, Transportation, Storageetc 3. Promotion:-It plays a role in the perception the possible target audience may have about the service. There has to be a fit between the promotion and the positioning. Online marketing makes it cheaper to conduct promotions and reach as many people as possible. Eg:- Personnel selling, Advertising, Sales promotion, Publicityetc 4. People: - They are crucial in service industry. It includes employees, management, customer service provided etc. Eg:- motivation and training to employees and education to Customer 5. Process:-They are important to deliver a quality service. Services being intangible, processes become all the more crucial to ensure that the standards are met. Eg:- a process could be simple or complex 6. Physical Evidence:-It affects the customer satisfaction. Often services being intangible, customers depend on other cues to judge the offering. This is where physical evidence plays a part. Eg:- Facility design, Equipment, Signage, Employee dress

OR

Q 2 (B) Explain how Socio-cultural, Personal and Psychological factors affect consumer buying behaviour
Buying Behaviour is the decision processes and acts of people involved in buying and using products. A large number of factors influence the consumer buying behaviour. Kotler and Armstrong classify these as:

Cultural Factors: Consumer behavior is deeply influenced by cultural factors such as: buyer culture, subculture, and social class. 1. Culture Basically, culture is the part of every society and is the important cause of person wants and behavior. The influence of culture on buying behavior varies from country to country therefore marketers have to be very careful in analyzing the culture of different groups, regions or even countries. 2. Subculture Each culture contains different subcultures such as religions, nationalities, geographic regions, racial groups etc. Marketers can use these groups by segmenting the market into various small portions. For example marketers can design products according to the needs of a particular geographic group. 3. Social Class Every society possesses some form of social class which is important to the marketers because the buying behaviour of people in a given social class is similar. In this way marketing activities could be tailored according to different social classes. Here we should note that social class is not only determined by income but there are various other factors as well such as: wealth, education, occupation etc. Social Factors: Social factors also impact the buying behavior of consumers. The important social factors are: reference groups, family, role and status. 1. Reference Groups Reference groups have potential in forming a person attitude or behavior. The impact of reference groups varies across products and brands. For example if the product is visible such as dress, shoes, car etc then the influence of reference groups will be high. Reference groups also include opinion leader (a person who influences other because of his special skill, knowledge or other characteristics). 2. Family

Buyer behavior is strongly influenced by the member of a family. Therefore marketers are trying to find the roles and influence of the husband, wife and children. If the buying decision of a particular product is influenced by wife then the marketers will try to target the women in their advertisement. Here we should note that buying roles change with change in consumer lifestyles 3. Roles and Status Each person possesses different roles and status in the society depending upon the groups, clubs, family, organization etc. to which he belongs. For example a woman is working in an organization as finance manager. Now she is playing two roles, one of finance manager and other of mother. Therefore her buying decisions will be influenced by her role and status. Personal Factors: Personal factors can also affect the consumer behaviour. Some of the important personal factors that influence the buying behaviour are: lifestyle, economic situation, occupation, age, personality and self concept. 1. Age and life-cycle stage Age and life-cycle have potential impact on the consumer buying behavior. It is obvious that the consumers change the purchase of goods and services with the passage of time. Family life-cycle consists of different stages such young singles, married couples, unmarried couples etc which help marketers to develop appropriate products for each stage. 2. Occupation The occupation of a person has significant impact on his buying behavior. For example a marketing manager of an organization will try to purchase business suits, whereas a low level worker in the same organization will purchase rugged work clothes. 3. Economic Situation Consumer economic situation has great influence on his buying behavior. If the income and savings of a customer is high then he will purchase more expensive products. On the other hand, a person with low income and savings will purchase inexpensive products. 4. Lifestyle Lifestyle of customers is another import factor affecting the consumer buying behavior. Lifestyle refers to the way a person lives in a society and is expressed by the things in his/her surroundings. It is determined by customer interests, opinions, activities, etc and shapes his whole pattern of acting and interacting in the world. 5. Personality Personality changes from person to person, time to time and place to place. Therefore it can greatly influence the buying behavior of customers. Actually, Personality is not what one wears; rather it is the totality of behavior of a man in different circumstances. It has different characteristics such as: dominance, aggressiveness, self-confidence etc which can be useful to determine the consumer behavior for particular product or service.

Psychological Factors: There are four important psychological factors affecting the consumer buying behavior. These are: perception, motivation, learning, beliefs and attitudes. 1. Motivation The level of motivation also affects the buying behaviour of customers. Every person has different needs such as physiological needs, biological needs, social needs etc. The nature of the needs is that, some of them are most pressing while others are least pressing. Therefore a need becomes a motive when it is more pressing to direct the person to seek satisfaction. 2. Perception

Selecting, organizing and interpreting information in a way to produce a meaningful experience of the world is called perception. There are three different perceptual processes which are selective attention, selective distortion and selective retention. In case of selective attention, marketers try to attract the customer attention. Whereas, in case of selective distortion, customers try to interpret the information in a way that will support what the customers already believe. Similarly, in case of selective retention, marketers try to retain information that supports their beliefs. 3. Beliefs and Attitudes Customer possesses specific belief and attitude towards various products. Since such beliefs and attitudes make up brand image and affect consumer buying behaviour therefore marketers are interested in them. Marketers can change the beliefs and attitudes of customers by launching special campaigns in this regard.

Q4: SHORTNOTES (Sneha-Roll no-40) 1. DISTINGUISH BETWEEN MARKETING AND SELLING

1)

2) 3) 4)

5) 6)

7) 8)

9) 10) 11) 12) 13)

MARKETING Marketing means all customers wants and satisfying efforts concerning with planning, pricing, promoting product and services. Emphasis on consumer needs and wants. It is consumer oriented. Company first determines customers needs and wants and then decides out how to deliver a product to satisfy these wants. Marketing uses innovation in technology. Planning is long-run-oriented in todays products and terms of new products, tomorrows markets and future growth. Marketing is a pull strategy. Heterogeneous Scope is to identify customer need (research), creating products to meet those needs, promotions to advertise said products. Marketing views the customer as the very purpose of the business. The consumer demand determines the price, price determines the cost. Marketing is one to many processes. The main goal is to find the right products for the customers. Marketing shows how to reach to the consumers.

SELLING Selling is the transfer of the ownership and possession of the goods to the purchases. Emphasis is on the product. It is production oriented. Company manufactures the product first.

Selling uses existing technology and focuses on reducing costs. Planning is short-run-oriented in terms of todays product and markets.

Selling is a push strategy. Homogenous Once a product has been created for a customer need, persuade the customer to purchase the product to fulfil his needs. Selling views the customer as the last link in the business process. The cost of production and distribution determines the price. Selling is usually one on one process. The main goal is to find the right customers for the products. Selling is the ultimate result of marketing.

Q2. Consumer buying Behaviour process

An individual who purchases products and services from the market for his/her own personal consumption is called as consumer. Definition of Buying Behavior: Buying Behavior is the decision processes and acts of people involved in buying using products. and

A consumer goes through several stages before purchasing a product or service. NEED INFORMATION GATHERING/SEARCH EVALUATION OF ALTERNATIVES PURCHASE OF PRODUCT/SERVICE POST PURCHASE EVALUATION Step 1 NEED

Need is the most important factor which leads to buying of products and services. Need infact is the catalyst which triggers the buying decision of individuals. An individual who buys cold drink or a bottle of mineral water identifies his/her need as thirst. However in such cases steps such as information search and evaluation of alternatives are generally missing. These two steps are important when an individual purchases expensive products/services such as laptop, cars, and mobile phones and so on. Step 2 INFORMATION GATHERING/SEARCH

When an individual recognizes his need for a particular product/service he tries to gather as much information as he can. An individual can acquire information through any of the following sources: Personal Sources - He might discuss his need with his friends, family members, co workers and other acquaintances.

Commercial sources - Advertisements, sales people (in Tims case it was the store manager), Packaging of a particular product in many cases prompt individuals to buy the same, Displays (Props, Mannequins etc) Public sources - Newspaper, Radio, Magazine Experiential sources - Individuals own experience, prior handling of a particular product (Tim would definitely purchase a Dell laptop again if he had already used one) Step 3 EVALUATION OF ALTERNATIVES

The next step is to evaluate the various alternatives available in the market. An individual after gathering relevant information tries to choose the best option available as per his need, taste and pocket. Step 4 PURCHASE OF PRODUCT/SERVICE

After going through all the above stages, customer finally purchases the product. Step 5 POST PURCHASE EVALUATION

The purchase of the product is followed by post purchase evaluation. Post purchase evaluation refers to a customers analysis whether the product was useful to him or not, whether the product fulfilled his need or not? Q3. Factors Affecting Marketing Communication Mix The specifc mix of advertising, personal selling, sales promotion, event and experience public relation and direct selling is called marketing communication mix Characteristics of Marketing communication mix Advertising. Eg: Print, Broadcast, Outdoor Sales promotion. Eg: Premium, Discounts Public relations and publicity. Experiences. Eg: Nestomalt Personal selling. Eg: Sales presentation, Trade shows

Direct marketing. Eg: Catalogues, telemarketing, Internet

Communications mix allocations vary between consumer and business markets. Consumer marketers tend to spend comparatively more on sales promotion and advertising; business marketers tend to spend comparatively more on personal selling. Communication mix tools vary cost effectiveness at different stages of buyers readiness. There are 5 stages in the buyers readiness. Awareness Comprehension Conviction Order Reorder

Cost effectiveness

Advertisin g& Publicity

Stages of Buyers Readiness

Communication mix tools also vary in cost effectiveness at different stages of the product life cycle. There are 4 stages in the product life cycle. Introduction stage Growth stage Maturity stage

Decline stage

Q4. Direct marketing Direct marketing is a channel-agnostic form of advertising that allows businesses and nonprofits organizations to communicate straight to the customer, with advertising techniques that can include Cell Phone Text messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, and outdoor advertising. A Direct Marketing Channel is. Consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users Traditional Direct Marketing: Direct marketing through traditional channels includes strategies that distribute messages, coupon, and other promotions to customer segments based on basic demographic data, such as age, income, location, profession, etc. Traditional marketers advertise through channels including direct mail and telemarketing calls, as well as direct response television, radio, and print. Digital Direct Marketing: Digital marketing has picked up a considerable following in recent years as the Internet has become the primary way consumers research products/purchases and interact with brands. Digital direct marketing strategies distribute targeted, personalized content through web-based platforms including email, SMS, social media networks, search engine advertisements, blogging, and mobile apps that are utilized to promote a service or product. Cross-Channel Direct Marketing: As could be assumed from the name, this approach uses multiple communication channels spanning both traditional and digital marketers in a very coordinated fashion. Marketers who choose to use crosschannel direct marketing view the process as a cycle in which one form of engagement leads to another. For example, retail companies can expose their brand to audiences through television and magazine ads and continue engagement through social media profiles that provide access to the brands webpage where sales can be made. Cross-channel strategies call for an integration of direct mail, face-to-face interaction, online advertisements, social media engagement, email, and more. Direct Channel: when a producer and

ultimate consumer deal directly with each other. Indirect Channel: when intermediaries are

inserted between the producer and consumers and perform numerous channel functions.

Q5. The Role of Place is Service Sector. Introduction While place marketing is a relatively new field of academic research, its origins stem from social and non-profit marketing (Kotler & Levy, 1969; Kotler & Zaltman, 1971), and it has been practiced for many centuries for the development and promotion of places, cities, and nations (Kavaratzis & Ashworth, 2008). The field progressed from the initial place selling approach to the use of integrated marketing and branding techniques as part of a strategic approach focused on the delivery of a places amenities to various target markets for future economic growth and image improvement, amongst other benefits (Ashworth & Voogd, 1990, 1994; Kotler et al., 1993, 1999; van den Berg & Braun, 1999; Rainisto, 2003; Gertner, 2011). However, the perplexity of marketing places and the interdisciplinary nature of the field have led to confusion among academics and practitioners. The biggest issues regarding place marketing is the lack of a robust theory and the confusion that academics may cause as a result of their different research backgrounds (Hanna & Rowley, 2008; Skinner, 2008). Therefore, interest in why and how place marketing might be used for improving the competitive image of deprived places can help to the development of an empirical framework, which can make a significant step towards theory making (Niedomysl & Jonasson, 2012).

Definitions Due to the interdisciplinary character of place marketing, a number of definitions

have been developed over the years. Often, the term is used synonymous with the concepts of place promotion and place branding, making the attempt to distinguish the concept of place marketing challenging (Berglund & Olsson, 2010). Whereas there are plenty definitions of place marketing, few of them are paying attention to the marketing side of the concept. Usually place marketing is defined as a management process (Kotler et al. 1999; Rainisto, 2003) which encompasses the attempts of place differentiation for competitive advantage over other places. Differentiation occurs with the collaboration of all actors and the enclosure of local activities to meet the demands of targeted consumers (Ashworth & Voogd, 1994). However, communication theory seems to help better to the understanding of what place marketing is, as it includes image exposure of a places economic, social, political, and cultural aspects to certain target groups (Kavaratzis & Ashworth, 2008; Kaplan et al., 2010). Niedomysl and Jonasson (2012) incorporated elements of place marketing and place branding in their definition, which can be seen as a blend of the two concepts, with place branding as a part of the holistic place marketing practice. Therefore, place marketing can be defined as the measures taken, by actors appointed to govern a place, to improve the competitive image of that place with the explicit aim of attracting capital from elsewhere