Fundamentals of Management for Engineers UNIT MARKETING MANAGEMENT » nswers Short Questions. with Ql. Define Marketing? Answer: “Marketing is the performance of business activities that directs the flow of goods and services from producer jocustomer or user”. Marketing refers to activities a company udertakes to promote the buying or selling of a product or service. It includes advertising, selling and delivering products to consumers or other businessess, Marketing isa total system of business activities designed to plan, price, promote and distribute want satisfying spods and services to the present and potential customers. 2. What are the functions of marketing. Answer: Functions of Marketing: A) Function of Exchange (Buying function (@) Assembling function (ii) Selling function B) Functions of physical Distribution () Transportation (i) Inventory management (ii) Warehouse (iv) Material handling © Functions of facilities (Financing (i) Risktaking (ii) Standardization liv) After sale service Q3. Write the difference between marketing Vs Selling? Answer Marketing is the method of serving and satisfying customer needs. Whereas selling transforms the goods into, ‘"oney marketing concentrate on customer needs but selling focus on sales volume Marketing Selling 4) Long term business planning 1) | Short term business planning 4% Focusion Customer needs 2) | Focuson seller need 4) Identify the customer frst 3) | Manufacture the product fist 8 Customer satisfaction with profitoriented 4) | Seles volume oientet ») Stress on need of buyer 5) Stress on need of the seller 5) Marketing consist of all he important 6) 411s 4 integral part of marekting ‘mix, lke product price, promotion, selling distributes etc ‘Weting :XerodPhotocopying of this book isa GRIMIN ly Is ABLE to Taco1 Engi ee Fundamentals of Management for Engineers Q4. Write a short notes on marketing mix? Answer: . del 1 term “marketing mix” sa foundation mo for bint historical centered aroun preshct. Prie, Place and promotion also known as 4 p's, The manieing mix has been defined as the “set of marketing looks ha the firm uses to pursue its marketing objectives in the target market. These elements of marketing mix are equally applicable to services. The marketing mix of a service consists of seven elements they are product, price, promotion, place, people, processes and provision of customer services. 1) Product : Product is good or service offered by the company. 2) Price: Price is the amount of money paid by the consumer forthe product or the value exchanged in order to use or own the product. 3) Promotions : Promotions are the activities that communicate the procluct and its benefits to the target market. 4) Place: Its the place where the company makes the product available to the consumers, Q5. Write a short notes on marketing strategies? Answer: Accompany should have a clear target market, i will help the company to form a good marketing strategy, Depending upon the consumer preferences, the marketing strategies are three, They are 1)” Differential marketing strategy. 2) Undifferential marketing strategy, 3)_ Concentrated marketing strategy, Q6. Define product life cycle? or What is PLC? or Write a short notes on PLC? Answer: A product passes through distinct stages during its life is called product life cycle. The product life cycle concept plays an important part in the development of a’product mix strategy. Product have definite lives and they go through cfferent stages of ife cycle overa peried of time like living beings. A product passes through 4 stages, a) Introduction Warning : Xerox/Photocopying of this book is a CRIMINAL Aci. Anvane EGG Som by) Growth Maturity d)__ Decline What are the distinct stages of PLc> ‘Answer: “The product passes through four different ‘They are 1) Introduction: = The product is new to market, there ar competitors in market making a similar offering ang, of the buyers are yet to try the product or know about the product. 2) Growth: As the product becomes widely known, sales rapidly as the cost of distribution and promotion is: cover a large volume, and so the cost per unit islow, 3) Maturity: At this stage, a decrease in sales growth k because most potential buyers have tried the prod 4) Decline: Sales slowly decline because of buyer needs or the introduction of substitute produal new and innovative firms, Q8. Define market segmentation? Answer: Market segmentation is defined as the ad dividing a market into distinct groups of buyers require separate products and marketing mixes. The for segmenting the markets are 1) Geographic segmentation: The market divided into different geographical such as nations, states, regions and cities, 2) _Demographical Segmentation: Séam bbased on popular characteristics such as, Age Gender Income Family size Occupation Education 3) __ Psychographic segmentation: Divi consumers based on Social classeaves Personality Behvioural Segment: f piers are divided into gonsurer behavior. are the STOUpS on the basis of ac ve ‘The ferent types of matekts are cassfid into Based on number of sellers et ferent types of marekis? a) Perfect market 4) Monopoly ) Monopolistic market Oligopoly @) Duopoly 4) _ Based on number of buyers a)“ Monopsony +b) Duopsony Oligopsony i) Based on the nature and susbtitutability of the product. i)_ Existence of bartiers to entry, QO. Write a short notes on Direct Marketing? Answer: Direct marketing isa form of marketing in which asingle customer is approached for advertisement of the produc (or) distribution to individual consumers rather than through a thrid party such as mass media, mail, email,social media and texting campaigns are among thedelivery systems used. Direct marketing is communciting with members tithe public who have shown interest to buy fiqm seller. Ex. : A purchase over the telephone or post, ‘atalogue, an exhibition, direct mail marketing etc. QU. Define Network marketing? Answer: Network marketing is a business model where ‘dependent contractors or non salaried workforce sell company's products and ern a commission on thelr Manufactures use Network marekting to expand bet sales It typically invives using three basic ‘ypes of atc strategies to make money; lead generation, ".cuiting, building and management. )salso called network nentals of Management for Engineers marketing Ex: Person to Person sales by indepen Fepresentation, often we ey indepen forking from home. Qi. Write a short notes on Digital marketing? What is Di Answer: I Marketing? ? Digital marketing also called online marketing, is '¢ Promotion of brands to connect with potential Customers using the internet and other form of digital ‘communiction. It is the component of marketing that Utlizes interned and online based digital technologies. Ex: Such as desktop computers, mobile phones and other digital media and platforms to promote products and services, Q13. Define channels of Distribution? Answi A distribution channels the route through which goods or services move from the company to the customer or the transfer of payment happens from the eustomer to the company. Distribution channels can mean selling of products directly or selling through wholesalers, retailers etc., The same applies for payment transfer from customer to company, Distribution — whole seller + Retailer + * Customer Manufacturer -> Distribution -» Wholeslaer > Retailer > Customer o Manufacture -> consumer Q14. What is SCM? or Write a short notes on supply chain ‘management? Answer: ‘Supply chain mangementis the management of the flow of goods and services and includes all processes that transform raw materials into final products. Itinvolves procuring the right inputs ~ Raw materials, components and capital equipment, converting them efficiently into finished products and dispatching them to final destinations. It involves tracing the sources of suppliers and main objective is to control over the entire route, improve efficiencies and productivity and reduce the final cost. Mutti-level- ting (MLM) Fe aa 5x CRON yi OO wy URE es LEA oss 7 WaraviBicaiananwina of this boo!Fundamentals of Management for Enginee’s B Fundamentats of M Ex. : Supply chain activities include farming, refining, desgin, manufacturing, packaging and transportation known as supply chain._ QI15. What are the different types of marketing? Answer: There are mainly three different types of marketing. They are 1) Direct marketing 2) Network marketing or multilevel marketing Q16. What are the factors that affect the choice | . of channels of distribution? The following are the factors that affect the channels of distribution are: 1) __ The type, size and nature of the customer's demand 2) Nature of business 3) Type of product sold 4) Price of the unit of sale 5) > Profit margin and mark ups. 6)__ Degree of competition .1 INTRODUCTION To Marketing Define Marketing Management? Exnin } ? Explai various marketing concepts and ihe, appliations under present conditions, wet “Marketing is the performan, ues that directs the flow of goods a wr gucertocustomer or user”, Marketing refers to activities a com : pany ude rotethe buying orseling ofa product onsen jiedudes advertising, selling and delivering products cqnsumers or other businessess, Ce of business nd services from Marketing isa total system of business activities desgned to plan, price, promote and distribute want afying goods and services o the present and potential aastomers. Marketing Managements the analysis, planning, inplementation and control of programmes designed to ceate, build and maintain beneficial exchange and reationships with target marekts for the purpose of achieving organizational objectives. There are five importanct marekting conceptsthey 1) Production concept 2) Product concept 3) Selling concept 4] Marketing concept 5) Societal marketing concept 1) -Production concept: Production concept is the oldest marketing concept. The marketers believe that ifthey have adequate duction capabilities and utilise them fully and increase ‘hei production at low costs. The production concept holds that consume's 7 ‘evour those products that are available and bh Wy “fordable and therefore manaement should concen ‘nimproving production and distribution efficiency: 2) Product Concept: . The consumers will favour products that Ge te Ses qualtiy, performance and features and bees ‘he organisation should devote its energy tom ic improvement continuous. =: stunayement for Engineers and int lensive sales promotion. It hold n. Itholds that consumeris left alone, will ordinarily not buy enough of the catsation products. The organisation must therefore undertake an aggressive selling and promotion effor. 4) Marketing Concept: The next business Philosophy is the marketing concept, which become Popular among the business organisation from 1950sin the USA and other developed countries in the west. The marketing concepts holds that the key to achieveing organisationsal goals consists in determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than the ‘competitors. 5) Societal marketing concept: The societal marketing concept holds that the organisations task is to determine the needs, wants and interests of target groups of consumers and to deliver their desied satisfactions more effectively and efficiently than its competitors i.e., it preserves or enhances the consumers and the societal well bing. i 4,2 FUNCTIONS OF MARKETING Q2, Explain about various functions of marketing? or What are the main functions of marekting? ‘Answer : The main functions of marketing are ’) Functions of exchange Buying, assembling and selling functions ii) Functions of physical Distribution Transportation, Inventory management, ware housing, Material Handling ii) Functions of facilities Financing, Risk taking, standardization and after sale service i) Functions of Exchange a) Buying Function ‘A manufacturers required to buy raw materials for production purposes. Similarly, a whole saler has to buy goods from manufacturer for purpose E EGAL proceedings 72 found guilly Is LIABLE to face LE WAL Act. Anyone f ‘book is a CRIMI Wiatina = warneiBhatncooving of this4, __s39 ations of buying have to by ngineer! Fundamentals of Management for Enginecr sumer. These fu cas to retailer A rear has 10 sll the goods 1° preformed at various levels. st : : ; lased from various sour Puedes + from buying. In Assembling goods are purchase eg ‘Assembling is separate and differen! See and assembled at one place to suit the requirem ©) Selling function: Selling involves transfer of owne! Producing goods is easy but itis ve i) Functions of Physical Distribution: a) Transportati It ineludes decision on mode of transport, se scheduling, processing claims et. : b) Inventory Management: Itincludes + Short term sales manaement + Product mix at stocking points for the success of any fim | chip from seller to the buyer. This s useful ry dificult to sell them. 1, cartier routing, vehicle rvice selection, fright consolidation Number, size and location of stock points Just in time (JIT), push or pull strategies c) Ware house Itincludes the following + — Space determination + Stock layout and design + — Stock placement d) Material handling It includes the following functions Equipment selection Equipment replacernent Orde picking procedure Stock storage and retrieval Functions of fa : ; Financing: Arran finan nck {etgsement ol inane ndfnanei ann for short em, medium-term and long-term finances ate | Ex: Credit facilities, installment (EMI) etc., b) Risk Taking: ‘These innumerable risks arising due to unforeseen the process of marketing of goods and services. Ri tochangesin govt, policies, incteased competition a ©) Standardization: Buyers and sellers always prefer to indardized goods and services. This ve buyers from Ws prefer to have standard a : As Is es. This will relieve buy: | 4) After sale service circumstances which marketing enterprise has to bearin an also 6 ensured eg fire and accident. But risk ue ind technological changes cannot be ensured. Warning : Xerox/Photocopying ofthis book is & CRIMINAL Aa. RrwI —__" Fundamentals of Management for Engineers 4.3 Marketing Vs Setuinc Explain the difference between marketing and selling? oF t holds that achievi f spake ei ti en fe that consumers do not buy enough of products unless the manufacturing ia undertakes Focus Objectives A Selling Concept Focus Means Objectives Profit though satisfaction B Marketing Concept Difference between Selling and Marketing Selling Marketing 1) Focuson Seller's need. 1) Focus on Customer's need. 2) Maximise the Seller's profit arid sale. 2) Profit through customer's satisfaction. 3) _ Itstarts after production and ends with 3) Itstarts before production and continues the sale of product. evenafter sale. 4) Scope of selling is limited to exchange of 4 ‘Scope of marketing is wide. It includes so * goods or services for some considerations. many activites for example create demand. for products and services, design & production of product etc. 5) Seller or producers consiered king pinof | 5) — Consumeris considered king pin of market, market. 6) _Itinvolves fragmented approach to sell 9 _Winvolves integrated approach to identify all that is produced by hook or by crook. ‘and satisfy customer's need. 1, _Emphasisisgiven onthesaleofalteady | 7) Emphasis given produc planning and produced products. development to match product with market. 8) Seller uses promotional methods to increase | 8) Marketer uses integrated market strategies its sale of products. to capture big share in market. God MARKETING MIN = MARKETING STRATEGIES ) . Rxpan ‘about marketing mix? Or Explain about elements of marketing mix? eting s that the firm blends to produce the response ntrollable, tactical marketing tools that the firm blen Mea tfebnami asthe set of con ssf evesthing the mean do tonence the demand for coat ne : haeomm cag oF this book Is @ CRIMINAL Act. Anyone found guily is LIABLE to face LEGAL proceedings : KerexiPhotocopying of thisfor Engi als of Management for Engi sibilities can be collected into : ssproduct © Fundam yer its product. The many possibilit ae four groups of variables known as the fo price, place and promotion. cE price. Steet Product : Product means the goods and services combination the company offers to the target ‘market. A product is the item offerered for sale. A product may be a service oranitem. A product ‘with name becomes abrand and made at a cost and each is sold at a price. Ex:: Product - bread or butter any item serivce- A hotel stays for instance. Price: Price is the amount of money that customers are willing to pay for his purchases or to obtain a produc. Instead they negotiate the price with each customer, offering discounts, trade in allowances and credit terms to adjust for the current competitive situation and to bring the price into line with the buyer's perception. 3) Place: ‘The products distributed and made conveniently available for the consumer at the tight location at the right time in the right quantities: It is a crucial part of marketing mi - Company will place its products and services in an attempt to gain market share and consumer Purchases, 4) Promotion: Promotion tend to focus on how to attract the attention of consumers and motivate them to take action or make a purchase via €-commerce or other channels. The aim of promotion is to increase awareness, create interest, generale sales or create braid loyalty. The marketing mix of a service consists of seven, elements - product, price, promotion, plac people, processes and provision of customer services. The additional three elements willeapture ting : Xeroxl Photocopying of is book sa CRIMINAL Act A #XeroxdPhotocopying of this book is & CRIM 5) 6) 7 Q cervice marketingin practice the fallcomplexity of reorie g an essential element in both the Pde dekverty of most serviees People wre increasingly becoming part of the fo create added value and gain competitive nanan: Proesas areal he procedures mechanisms and routines by which a service ig treated and delivered to a customer. Process management is a key aspect of service quality improvement. Provision of customer service: Customersare becoming more sophistcted in their requirements and are inereasingly demanding higher standards of service. Many major service companieshave recognised the need for improving the customer service in order to complete in today's highly competitive service environment. 5. Explain about marketing strategies? Answer : A target market consists of set of buyers with ‘common needs and similar characterisics the company decides to market. A company should have a clear target in m to y) 2 3) 1) 2) arket, It will help the company to form a good arketing strategy. The frim can adopt three strategies select segments. The strategies are: Differentiated marketing strategy Undifferentiated marketing strategy Concentrated marketing strategy. Differentiated marketing strategy: Differentiated marketing strategy involves separate marketing plans for separate segments and therefore good brand management is required. It Tequires different advertisements, locting different channels because the company has to reach many segments. In his strategy the company must compare sales against costs Example: In soft drinks market, coke has many brands such as coke, maaza, sprite, Thump-up, limea with this, coke hope to serve differentn tastes of consumers in the market Undifferentiated marketing strategy: This strategy makes a company to reach the marke} with one offer. It focuses what is common Tconstimer preferences that what is different. ye company make one marketing programme Which will be attractive to large number of buyers. Making a movie and marketing it can be the best example. von found gully ABLE to face LE@ar-woxccae7 1 Fundamentals of Management for Engineers In tis case company is not offering many | 1) Introductory o Introduction Stage: ee ee The product is new to the market, there are few 4) Concentrated marketing strategy: competitors in the market, marketing a similat A third marketing strategy is concentrated ‘offering and most of the buyers are yet to try the marketing. Concentrated market is where all the product or know little about the product. consumers have generally the same preference. Inrociucing a new product generally requires more ‘The company goes for big share of one segment extensive matket esting and marketing compaigns. when the resources of company are less. This The focus of promotional activity should be on | __ strategy is good for small companies, ‘making the potential customers understand the 4:5) PROOUCT IE Gia basic concept of product as well as the brand. 2) Growth stage: @&. Explain the various stages in product life {As the procluct becomes widely known, sales grow cycle? rapidly as the cost of distribution and promotion of ispread overa large volume and so the cost per | units low. As a result of this profitability begins What is product life cycle (PLC)? What are | to rise, public awareness increases, competition the implications for the marketing manager begins to increase with a few new players in at each of the phases of PLC? establishing market. 3) Maturity Stage : or This stages experiences a decrease in sales growth What marketing strategies do vou feel are levels because most potential buyers have tried appropriate at each stage of product life the product, Repeat purchases dominte sales and cycle? only the strongest competitors remain in the “ ‘business. As the competition is severe, sales may Answer: bbe pushed down, unless promotional efforts are Definition: increased. Product Life Cycle (PLC) has defined as “an The sales infact reach a saturation point. Various atempt to recotgnise distinct stages in the sales history companies carry out product redesign, product of the product” reformulation, diversification or minor product Philip Kotler variations, when their products enter maturity ‘The product life cycle concept plays an important stage. part in the development of a product mix strategy. It | 4) Decline Stage: serves to identify the competitve significance of existing Sales slowly decline because of changing buyer products and altemative competiive environments for needs or the introduction of substitutue product new products. Analysing competition is never ending by new and innovative firms. One thing is sure actnity, Products have definite lines and they go through that no firms. One thing is sure that no product diferent stages of life cycle over a period of time. lasts forever. Organisations need to constantly Implications for mareketers in PLC: improve thet reduc ond other marketing mix strategies PLC Stages: — 1) Introductory stage 2, Growth Stage Q7. Discuss the bases for segmenting market 3) Maturity stage or : Explain about market segmentation? Answer: Market Segmentation: Market segmentation is defined as the act of dividing a market nto distinet groups of buyers who might require separate products and marketing mixes. The company identifies cliferent ways to segment the market TNE > and develops profiles of the market segments. ___Acompany may plan to operate in any market Waring KeroxPhotocopying of s book is @ CRIMINAL Act, Anyone found gully Is LIABLE to fac LEGAL proceedlgsmmr Sst Fundamentals of M. ndustrial marke. Iris not Possible fora company to operate in all markets suth as consumer market ‘The bases for segmenting the marekts are 1) Geographic 2) Demographic 3) Rychosrahie 4) Behavioural 1) Geographic Segmentati Geographic segmentation is dividing the market into different geographical units such as nations, states, regions and cities. This segmentation is useful is making the distribution arrangements in diferent areas. It also helps marketers in understanding the consumers in diferent regions, their tastes, customs et, Indian market may be divided into a) North b) South J Wes East 2) Northeast 4). RuralSegments 9 Semiurbanand urban sements 2) Demographic Segmentation: Demographic segmentation is dividing the market | based on population characteristics, The reason for segmenting the markets on demographic basis is that consumer needs and tastes are highly different across these population characteristics such as age. gender, family size, income, occupation, education etc. a) Age: Age asa segmentation variable is useful in many product markets, Ex. Footwear the market is segmented by age, thatis different sizes and styles for children and adults, b) Gender: Gender segmentation is dividing the market into female and male markets. Ex: Clothing, footwear, watches are best example for gender segmentation. ©) Income: For almost all consumer produts segmenting the market by income. Ex. Ty's - Lower income (black & white) Clour Tv's - Middle income ‘Ty's Higher income (more than 50,000) 4) Occupation: Markets can be segmented on the basis of occupation, there by a major segment in Indian market i By Eee ———_"4, | is agricultural segment. Majority of the consume, theirncomes om agricultural sources, here incomes are seasonal Euealtow di : larketscan be divided into segments on tho of cduienakolliteate semengtisasoabig sconce 3) Psychographic Segmentation; Paychographic segmentations diving conan, ino lifferent segments on the basis of social cas. style and on personality characteristics, ) Social Class: ‘Social class has strong impact on the preferences of consumers fr diferent products such as cas clethng home furnishing. “Ex Alldoctor consumer may be buying the sang type of clothing, furnishing in the house and also cay and fumiture ii) Lifestyle: The product preferences areinfuencag by life sivles aso, Marketers are segmenting matktsby the lfeslle of consumers in Hyderabad a big retaing store isa good example. Ex. Cars, hotels clothing, furniture etc, Personality: There are differenent personality types in consumers such as leader type, family type, ambitious, hapy man type. gregarious etc., Raymond is a good example of marketing a brand through personality ype. Ittalks of complete personality for a consumer 4) Behaioural Segmentation: In behavioral segmentation, buyers are divided into groups on the basis of their consumer behaviour thatisknowledge and attitudes, Occassions: °) (ii) On certain occasions, buyers consume some Products more. That means there isa demand forsome_| Specific products on some occassions, Ex. : During Dasara and Diwali there is more demand for clothing and new purchases of automobiles and furniture. 4.7 Tyres oF MarKETING - DIRECT Magwerinc - Network MarkeTiNG - Diciil Marketinc QB. Explainabout types of marketing? Answer: There are 1 mainly three different types of marketing. They are YDitect marketing 2) Network markoting 3) Digital marketing aria XerenPs i TE Bok SRNL AE yo iy ORBLE os GA OOD =pirect Marketing: Direct marketing | communicting with members of the public wh | have shown interest o buy from sce auch market, the product is distributed to indivi such as mass media, mail, email, social media texting campaigns, exhibition, telephone, post catalogue are among the delivery systems used, g) Network Marketing: Network marketing isalso Irnown as multi-level marketing where indepedent contractors or non salaried work force sell the company’s products and earn a commission through sales. There are many types of network marketing including single tier, two tier and multi level Ex: Avon, Amway, Herbalife these companies have different tiers or levels that are created each time a new member isadded to the network. Digital Marketing: Digital marketing is also called as on line marekting, the promotion of products and brands are connected to potential customers using the internet and othe foim of digital communication, The customers get buy the product from their conveinent places. Ex: Computerslaptops, mobile phones and other digital media are platforms to promote products and services. 3) Q. Explain about direct marketing with advantages and disadvantages? Explain direct marketing, what are the different ways utilised in Direct marketing? Answer : Direct marketingis a system of marketing by which organizations communicate directly with target customers togenerate a response or transaction. Direct marketing is an interactive system of “Marketing which uses one or more advertising media to | elect a measurable response and/or transaction at any location, : Ex: Vegetable, the products are reacily available ‘rectly communcited with consumers | Media Applications in Diret marketing: Direct response advertising on Ty Direct mail’ i) Tdemarketing ") Email/mobile marketing 4 Other media like magazine: 1s, newspapers, pee eer Eco ‘Seung: Kerox Photocopying oft 4M Fundamentals of Mana; ngineers nent for Inforericals te Forms of Direct marketing or types of Direct marketing: 1 Direct mail marketing: Itinvolves sending an offer, announcement, reminder or other item toa peron at a particular physical or virtual address and itis largest direct marketing medium. Catalog Marketing: Direct marketing through print, video or digital catalogs that are mailed to select customers, made available in stores, of presented online, Telephone marketing: Marketers use outbound and inbound calls, mostly 17% oof all direct marketing driven sales, used in both consumer and B2B markets. iv) Direct response Tv marketing (DRTV): DRTvisa 30-minute orlongeradvertising program fora single product. Ex: Home shopping channels - dedicated to sell ‘multiple brands, items and services. v) _ Kiosk marketing: Information and ordering machines generally found in stores, airports, metro stations and other locations. vi) New digital direct marketing technologies: Marketing with use of mobile phone has became ‘more popular Now'a-days, viewer engagement is ‘much higher than with regular Ty ads. Advantages of Direct marketing: a) Selective Reach b) Segmentation Frequency 4) Testing Timing f) Personalization a Costs h) Measures of effectiveness Disadvantages: a) Image factors b) Accuracy ) Content Support 4d) Risingcosts J “Donot contact” lists {Environmental impact Q10, Explain about Network marketing? What are the types of Network marketing? Or ‘keting can capture the. dingsBag Fundamentals of Manas: ment for Engines market and in what way? Answer: Network Marketing: Network marketing sa business model that relies ona network of distributors to grow a business. It typically involves using three basic types of systematic strategies tomake money: lead generation, recruiting building and management. How Netwark Marketing Works o- BF egy w ‘Network marketing isa business that depends on person to person sales by independent representatives, often working from home. There are many types of network marketing including single lier, two tier and multi evel 1) Sirigle tier Network marketing: In this type of marketing company need to recruit other distributors and all pay comes from direct sales. Ex: Avon, the popular beauty company. ‘Two Tier Network marketing: The company needs to recruit distributor, or affiliates to wok under them and they willbe paid for directsales and sales made by people recruited by company. Multi-level Network marketing: It involves more than two tier and this kind of network allows to make money 6 or more tiers deep by recruiting people. Means is like a chain system person's are recruited and the product has tosell by more number of workers. Ex. A slaes representative gets customers and recruits and trains another sales representative to get customers é Tupperware, Amway, Beauti cont ii) ii) Oriflame ete, QII. What are the benefits of Network marketing? Explain the advantages and disadvantages of Network marketing? Answer: Network marketing are a way of selling goods or services through distributors Advantages /Benefits of Network marketing: ‘KeroxiPhotecopying of ti 1) 2) 3) 4) 5) 6) 7 8) o 10) nn) dit by 1) 2) 3), 4) 5) 6 No Employees Personal! Development Flexible and convenient Freedom tosell Low Risk factor Business owner Internal system in place Residual Income ) High repeat sales No infrastructure needed ‘The products and company are usually marketed. extly to eonsumers and protential business partners means of relationship. Disadvantages of Network marketing: Longer startup time. Demand on worktime by network member. Raik of overstocking or understocking because sales forecasting is difficult. Company has no control over sales team, No close relationship with customers Company pays the marketer as % on number of lients created. QI2. Define Digital marketing? Write the advantages and disadvantages of it? or Explain digital marketing influence customers in today's era? Answer The digital marketing is also called as online ‘marketing, the promotion of products, brands, services or that utilize internet and on| are connected to potential customers using the intemet other form of digital communciation, Digital marketiig is the component of marketing line based digital technologies toa —e computers, mobile phones and other me anode ia and platforms to promote products and Benefits /Advantages of Digital Marketing: 1) Global Reaching: Avebate ©F a social channel allows to find new natkels and trade globally for only a small 2) estment in the project or the company. book is a CRIMINAL Act. An Lower Cost: jy. targeted digital the right custor traditional mar 'S properly planned and well marekting campaign can reach mers at a much lower cost thal! keting methods. It don't requite /one found guilty je URS . “ore ound gully is UABLE te face T Far wenrmadn®5) 6) 1 10) ny y 4 3 § 7 § 9 138 jotof budgetary respons Measurable Results: ‘Measuring online marketing with social iweb analytics and other online mettc tools, sale it easier to establish how effective campign has toon can obtain detailed informationatonr hes customers use company’s website or respond to advertising. Personalization: ‘The customer database is linked to website then whenever customer buys more from website, the more company can refine customer profile market effectively to them, Remteed Open new markets: By getting involved with social media and managing it carefully, can build customer loyality and create a reputation for being easy to engage with, Social Currency: Digital marketing can gain social curency because content images, videos, articles being passed from user to user and becoming viral. Customers or buyers can get comparative information from their desk at home on products, theirfeatures, brand, cost, quality et., ‘Customer can order products anytime of the day call 24 hours). No waiting time, No standing in queues for payment. No fixed timings and no’need to make hurried shopping. ‘Shopping can be done privately. Disadvantages of Online marketing: Everybody cannot have access to electronic media. All products cannot be marketed through net, ‘consumers fel ike touching the product. Ex: Gold omaments, diamonds ete Too much of exposure to information is creating problems for the elders. High competition due to Global expand. part with their credit lity, Buyers are often afraid to ‘© Fundamentals of Management for Engin 8 CHANNELS OF DisTRIBUTION Q13. Mention and evaluate the prominent channels of distribution? or Explain about channels of distribution? Answer: Channels of distribution refer to the ways and means of reaching the customer through the intermediaries such as wholesalers, retailers and other agencies. ‘A distribution channelis the route through which goods or services move from the company to the customer or the transfer of payment happens from the customer to the company. : The channel intérmediaries involve the transfer ‘of goods from the seller at a given place to the buyer in a different place. The wholesaler buys goods from the manufacturer, stores them if necessary grade and standardise according to various parameters. and then sellin small quantities as required by the retailers, they add convenience value. The customer can buy such a quantity and grade of goods as convenient to him. ‘Types of channels of Distribution: a) Manufacturer —> consumer b) Manufacturer + Wholesaler > consumer ©) Manufacturer -> retailer -> consumer 4) Manufacturer -» wholesaler -> retailer —> ‘consumer @) Manufacturer -» Distributor > Wholesaler —> retailer > Customer -> Consumer. a) Manufacturer > Consumer: This is a direct marketing channel where the manufacturer contacts the customer directly ‘without involving middlemen or intermediaries. Ex : Mostly industrial goods such as aeroplanes, turbo-engines, ships and other high value capital goods, house to hosue to sell heir products. b) Manufactuers - Wholesaler - Consumer: “The wholesalers inthis channel buy goods from many manufactures, stockand subsequently sell them through intemed or directly to the customers ina wider geographical area. scause of the fear aoe eee Ex: Large wholesalers in singapore bu various ae = OF ter lware in lar quantities Bayer cannot know whe paving the amor eee pai Pl the other side may be cheater (OF) PFOMPEONS: |) Manufacturer -> retailer -» Consumer: Time consuming and patience consent Mealy supermarkets, use ths channel to buy Complaints and feed back ssesmay be Negative proditsin large quanites from manufacturers response, eta very competitive price and sell the same to join sheling the ultimate consumers, SELES Quay may vary in dtl me “Ka fare found gully i LABLE to face LEGAL proceedings ‘ating Xerox Photocopying of is book i» CRIMINAL~ Fundamentals of Management for Engineers i mag Ex As Retailers enjoy large discounts, they sharte benefits to customers by keeping their products competi, priced, d) Manufacturer - Wholesaler - Retailer- Consumer: When the consumers are large in number, widely dispersed geographically and products are of low value, this channels favoured. : Ex: Consumer goods such as hosiery, food items, confectionery clothes and ready macle garments, cosmetics etc, M5 DW R- Customer-> Consumer: ‘Sometimes distributors also called as wholesaler when large quantities are purchases by distributor from, manufacturer, distributor sell to wholesaler. they grade, standardise in require quantities and sellto consumer customer : Customer who purchases the product consumer: Who utilises the product Q14. What are the factors that determine the choice of the channels of distribution? Illustrate, Answer: There are several factors that affect the choice of a channel, The requirements of the market have to be identified. What the customer wants and in what quantities. The marketer has to carefully choose how he would get his goods sold tothe potential customers most economically and efficiently The following are the factors that affect the choice of a channel ‘The type, size and nature of customer's demand: Ifthe customer wants small quantities, long channel are prefered and vice versa 1) 2) The nature of company's business: Choose the channel according to the nature of business activity such as agricultural products, industrial products, services and so on. 3) The type of product sold: ‘The goods may be consumer goods, durable goods or producer or industrial goods and others, Ex : Bread, Tv or refrigerator, engines, shockabsorbs. 4) Theprice of the unit of sale: Ifthe price of one unit isas high as that of an aeroplane, the producer can coniact the consumer divecty. 5) The profit margins and mark- ups: ‘These together with the extent of the sellers product line (single or multiple product line) play a role in attracting distributors to handle the goods 6) Degree of competition: lithe competition is more, the manufacturer has to arrange for even door to door selling or retail outlets such asautomatic vending machines. ‘Suppty CHAIN MANAGEMENT au “SCM leads to significant cost reduction’. How is this possible? Explain or Explain about supply chain management? Answer: Supply chain isa more comprehensive approach used in a broader ser ive approach used in a se than marketing channels, whi connect the marketer tothe target buyers, tenmesieingchanses whch Supply chain management isthe mana ‘sthe management ofthe flow of goods and services and includes all processes that transform raw materials into final products. It involves the active sttesm Ining ofa busines supply side tage in the market place. soe ol over the entre route, improve efficiencies and productivity and reduce Supply chain management involves procuring the right inputs - Raw ‘equipments, converting them efficiently into finished products and dispatching {identifies superior suppliers and distributors and help the company to improve productivity in such ave) that it ultimately brings down the éost of production, materials, components and capital ig them to final destinations. 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