J

,:-::'"'.· -: " - • . ~021 '. _·cNOV-DECj ••,. -, ' -~-: ·,:-· :-~· '~,' ·--,,~-:~---·]
flN~e ~f the Pa~er ~- Prin~ipI~~- ~£ -M~rketi~~- .-•• '-• • •• .·"'- _,_,.....,.~-..
Nante of the Course : .B. Com. (Hons.)
semester :V • II r

puration: 3 hours i
. . . Maximum Marks: 75 ·1

Atte_mpt any four questions.

All questio1:1- Carry equal marks_.
: Q. 1. A luxury hotel was built in Agra which claims that every room of its
hotel gives Taj view. A~ a marketing manager' ~f hotel industry lVhat ~keting .j
ntlx would you keep ~n mind while developin g such a unique selling • I~
'

preposition. . . . . r ' • • '•

Ans. Defining a p~oper marketing mix for hotel .industty is. important 'for the
success of hot~l' s marketing efforts. A ·hotel should have the right facilities/
services (Product), good promotional _strategies (bo~h ·offline and online) and
finally the most importanf right pric4lg. A luxury hotel_ is one that. provides
luxurious accommodation and an experience for its guests, and is oft~n as
a destination !-n and of itseJf. A luxury h~tel typically caters to a specific clientele
and aims. to create the atmosphere that its audience desire. ~ow a days a high
percentage of travelers focus _more on exp~rience than cost while choosing
accommodations. A luxury hotel grants its guests at) Qpportunity to indulge and
truly enjoy themselves. Conseque~tly, some· guests ·are. willing -to _spend more .
on luxury experiences. A luxury;.~O~f\ is\~~~"W:~4 ~---~-~One. stop_ shop for _food,
relaxation and experiencing ~;~¢stjllcl-~ion iyi~pjn a!destination'. In the given case ,'

the luxury hotel is loc_at~dJ.11 {\gi,~:)~if~i):lairi{s'"' that_ every room of its hotel gives . ., ...:.~,
Taj view, This unique seJfuis;:ptepo~ition can be offered with _the help of the 1'
·j
•

following marketing variables: ·, , . .

-~

- Product (service/facilities): Product.· in.· the context of luxury. hotels . is

concerned with various services and facilities they offer to their customers. Apart
- from providing the view pf ,Taj Mahal from every. room, the product_ element of
, the hotel will include the follo~ing: - . · : , . _: . • •
• Comfortable rooms . , , · • . Food and Beverage _
. • Banqueting !ooms • . Conference facilities __. .
• Recreational facilities· . • Health and Wellness facilities - ••
• , • Executive lounge • Express check-in checkout· services
• Travel desk· • Parking facil~ties . . • •.

• • • • Business Centre etc:

1
. . . ., ' . .. . ......
. - Place and disbibution. This element. of niar;t<eting •mix is concerned_ with - . •
: . accessibility. of the pro4ucts to consun:iers,· In case ~£. hotel industry the product ••.•
•does not travel to customers.· Instead customers co~e to the produ~t._ Pla~ anq _
•location of the. hotel is a very· ~portant _fac_tor that decides. the ~tu.re. of. the .
business. In the given case Place is very important .as the hotel cl~ th\t every.
room gives the Taj view. Thus nearness to Taj Mahal is t\l~.most UAlique ~ -
. preposition of the hotel. In order to reach out to the custo!l\ers with. ~~~
hotel can use the foll~wing methc;,ds. • . . .•• .
- Direct methods • .. .-. . .• . ., ..--....
• Sales throu~ a Sal4$ team •• ~ ~ t , l e ~
:i:.s.

• .Online pay. per die}( .w ~.._,d ~• - -.....,.,

 / .
PRINCIPLFS OF u A D~T • _.
258 Shiv Das DELHI UNIVERSITY SERIES . ...~lll~G-2021 (NOV-DEq ~9.
processes_ are, the happier the customers will be . . .
ads) etc. and services reduces the chances of custome • Offenn~ high quality products
• . • • Print media .advertisements . . fulfill their commitments by offering wh t th complain~. Marketers should
• Other media advertisements Hotel Website Booking System (WBS) retaining existing customers and attractina they ave pronused. This will help in
• • Global Distribution System (GOS) • • .. I P 1 g e new ones
- P eop
- Indirect methods _
e. . e are. a charactens·m·g £actor m
eop . an •assistan
• • Travel agents • •. • Independent travel agents measure as assistance is not divisi'ble &om th . di . . ce conveyance
• e m vidual • • 1·t .In this
• • Event partners • Online travel agents manner, a luxury hotel is remembered to as mu ht . ?1vmg •
• Online travel portals . • Indepen?ent hotel _represen~atives and assistance given by its staff. Therefore all le or ,ihts amb1~ce as the food
· tr • · f uxury otel chains offer di - t
- Promotion. This v~ble of marketing ~eals with effective prom~tion service a1IU~g or the staff. Since services tend to be roduced and en
and communication mix for the hotel. Promotion 1s the way hotels communicate at the same time, therefore 'people' play an importantpf t . consumed
· 'd ·· ac or m 7ps. People are
to the target-market. In the given case the unique selling preposition. tan be . the service prov1
• . ers m the service sector In hotel m·d try •peop1e_ are the face
• us
communicated to the target market with the help of the following tools of the orgarusation. Hence marketers should aim at puttin th 'gh
• ht • b d
ng d' ·
JO an rewar mg them on a regular bases. g e n t man on the
• ' • TV commercials • Billboards .
• • Scratch pad with hotel's logo• Hotel pens and pencils , - Physical evidence. Services are intanoible so •physical evi'd •
• • Facebook page . • Hotel Website dd f n· 'th o· ence lS an
a on a~ 1ty WI .servic~. It is' used to improve customer experience with
• -Brochures ·• Twitter channel tha~ particular service. Differ~nt hotels offer different physical en~onment •
•. • Invitation to travel agencies~ travel websites to i~s customers. For example, a luxury 5 star hotel will offer better physical
. / • Google + page . " • , en~1ronment as compared to a':erage 2 star hotel. This difference in physical
- Pricing. In hotel industry Pricing js concerned exclusively with room rate. • evidence causes an important impact in the perception of the customer. Hotel
Defining the correct pricil.lg strategy is one of the ,n~st important aspects of •• \marketers try to offer dean, attractive and luxurious physical environment to its
the marketing mix. Potential guests can reject_ the ~of hotel services in case customers. Physkal environment. is the very- first tool·used by the marketers in
guest rooms, food and beverag~JllenU etc.·are'·not'pri~d competitively. Indian order to attract their customers. The physical approach and environment are the
customers are strongly influenced by· pricing and packages. The main aim of very first servi~e things. service ~tnessed by the customers whenever they visit .
hotel ~ate codes and packages is b:>\attract more and more customers. Luxury any hotel or resort. " '<... • \ ,. • °' -. :· ,,, .,..
-~ • ' .i. ~-'.;,..-
. •
' :
hotels try to offer valye td -~---customers along with a lifetime experience. Q. 2. The growing concern of customers towards boosting immunity post
Pricing in hotel industry ..is, majority influenced by seasons. Following seasons pandemic inspires a company to introduce immunity booster biscuits and
define the hotel rates. • ·' '- •• bars. Suggest the appropriate bases of product positioning for introducing this
• Peak season. During this period, demand for a hotel and its services is' product in the market?
highest and the hotel is able to charge the highest prices from ~e guests.. Ans. Due to the spread of Covid-19 pandemic, demand for immunity boosters·
• Pla~es like Agra experience more tourists and international travellers . and other health products has drastically gone up in the recent past. Immunity
between- October to March and on long weekends. There is no defined has become th~ fastest growing segment in the overall health and hygiene space.
peak period for.all hotels. It varies &om one location to the other. Due to the pandemic-, consumers' focus has strongly shifted to overall wel-being.
- Yalley season/Off season. During this time period, there is lowest demand Cqmpanies have been ~aping benefits &om the consumers' focus on health and •
for hotels. Hotels during this time periO<:f offer reduced rates and packages. They
try to attract customers by offering discounted package rates etc.
•- •Shoulder season. This period falls between Peak season and Off season..

wellness.
. \
• - · .
The global pandemic has escalated an already growing trend for health
products,· especially. immunity boosting foods and drinks. This· increasing

.,
l
This •time is considered as the best time to attract new business as the rooms • . consumer demand is creating opportunities for food and beverage producers
are available and medium to high prices can be charged. Promotion, sales and · worldwide. Health segment is wide enough for existing customers and new _
marketing activities are at their peak during this season. · · players to find their place. -As an industry, a c~mpany launching immunity
Since hotel industry falls in the category of Services hence apart from product, boosters must communicate that these not necessarily medkal prod~ but •
. price, place_ and promotion (4 Ps), following three Ps are also taken into . rather functional· foods and beverages that are enriched or enhanced. with
•• .consideration by marketers. . ., • • . •• · • intention of boosting immunity~ part of a healthy lifestyle. It is a~u~
. - Process. I~ is concemed with an incorporated buying. exposure. Process taking a proactive approach every day to protect themsel~ ill heal'1-
IS concerned with the - ~ procedure, mechanisms and flow of activities by For a ne:w company, finding the right -balance_~~ posttionmg immUlllty •
which the service is delivered. It_ is important for the marketers to make good. boosting products is also an important factor. POS1tiorung h: place-tha~
relations with the clients even after the purchase process. Process describes the a brand occupies in the mind of the customer and .how it is distinguishe<lftom
~es of ·actions or the fundamental elements that are involved in delivering "' products of co~petitors. It is· an effort. to influence __coosumer ,percep~~:1-,~
~ihe-.product or service to
-
h:.•
~."l'he more seamless and personalised the _
- .
brand or product relativ~ to the ~ptio~ of competing ~d ~prod~
'
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.. 260 Shiv Das DELHI UNIVERSITY SER~ . PRINCIPLES OF U A n ~ .
..~iu"G-2021 (NOV-DEq 261
ll:lain idea behind is· to occupy a dear, u_niq~e and ~dvantageous position in the for Maturity stage. See Q. 36. , .
consumers' mind. A company launching 1mmun1ty boosters should position for Decline stage. See Q. 37. . . - . - (Page 76
.· . itself.as a nature loving brand giving health and ~ellness of the customers Prime Q. 4. The pricing decisions of a firm b. . • • -[Page 77
,-. - ·• importance while doing business and formula~$ products best suited to the .
company, environmental and competitive
. d .
/:t SUThJect t~. a complex array of
ces. e pncrng structure chan .
• changing times. Jbe t,rand should o~er a ran~e of healthcare pr~ducts that are overtime as a pro uct movts through its life de. While s . . ges -_
capable of catering to the needs of different kmds of customers m the market. new product a marketer must decid~ whethcy t d . etting ~ce for the •
. "d . S er o etenrune quality or •
The brand should position its produc~ as a reas?n for J?eople to celebrate life. cons1 eration. uggest possible pricing stratecne . bl pnce
. ·1 I h. . o- s avai1a e to a company
. The brand can position -its products 01:1 the followmg- basis. - wh1 e aunc 1ng a new product by giving suitable examples.
-· Features. It is concem~d with th~ capability of the brand's products to Ans. A company can follow the following pricing strategi·es whil I -chin
p , improve the health and overall wellbeing of the customers.
• a new product. _ . . aun g
- Benefits. It_ is associated w~th the. ~ealth and. benefits that immunity . 1. Skimming Pricing. It is also termed as "Skim-the-cream ••· g' 'This
,·--- - boosters can offer, to the customers m the long run. Such products can pricing is adopted_ whe~ an innovative new product is introduced1:':e ~arket
. assist c;ustomers to lead a healthy and decease-free life. and the com}?~Y 1s trymg to ~get the niche market. The prospective customers •
Comparison. Her~ the _Product is J?Ositioned as bein_g better_in some way ar~ less sensitive ~ow~ds p:ice are always looking for better products. In
than a known or 1:ffiPlied competitor. For example, m the given case the th1~ method the pnce IS set high Irutially and then gradually it is reduced. By this
brand can prove itself better as compar~d to other brands available 1n the pohcy the company caters to all market segments by hitting their psychology. By
market,-like Patanjali, Himalaya, Dabur etc. setting a high price initially, it targets those customers who are brand conscious
Price/Quality. Here the brand can prove itself as the one offering the best . and relate high prices with high quality. Then by cutting down the prices in
-. value for money. The brand can take advantage by claiming that it can terms of discounting, the company can cater to middle-income segment who
offer the best quality products at fair and reasonable prices. ·, are price-conscious ~d image-conscious also. Lastly; i.e., in the third stage, by
Usage of· application. This involve& p~sihoning the product as the,best milking the brand the company can cater ~o _lower income levels who look for .
for some end use or application. For examf!le in the given case tl;le brand • bargain hunting. It is advantageous in the that high profits in early life
.. <l. .as
can position itself -the· best.:. brand in providing natural he~th and • 1, .-cycle phase reduces the risk of obsolescence. 1J,is strategy is adopted by Apple,
wellness ~-. : '"" •. - ,. · ·-.
•. . ,.
· • ••
• _. . __ ,~
• :- · · k Reebok, Adidas (at the middle segment) and by Cantabil, Priknit, etc. at milking ...
Ingredie~ts. He; th~ -lmmu~ty booster brand can claim i!self to be the - 1
• - stage of brand~g. . • , •• • .
best on the basis of the ingredients used such as herbal and natural · . 2. Penetration pricing. 1bis strategy j.s used at the time when a product which
without any chemical or harmful ingredients. • . ' • is ·getting introduced in the mat:ket ~eady has l~ts of com~ti~OI_' ~thin the
Pro-environment. Here the brand can show itself as a good citizen : ._"_- market. The new pr~du~t is a ~ll;~titute. produ~. Penetra~on pncmg
• by stressing upon the fact that its manufacturing process and product I1 adopting a lower pnc~ m the Irutial penod o.r ~~ch time ~e product .JS .
J • processing are 100% natural and environment-friendly and they ~ve • accepted by the customers. Following are ~e conditions under. whic~ a product , .'"
never been tested on animals. I~ should have penetration pricing: . • • •. . • . •
Product'category. The brand can claim that it is the leader in the category (i) When sale~ volume of the pr~uct is very sensitive to pnce.
,,
of immunity boosters and health products. It can attract customers by (ii) When a large volume of sales IS to be eff~~-
claiming that its produc~ are best in the segment and they offer value_ (iii) When the product faces threat_from c~m~to~. • . .
for money to the customers. • · • . :- • • . (iv) ·When stability of price is reqwred. • • .
Swadeshi. The impact of Made. in India' ·can be very beneficial for the
1 Low starting price sacrifices short-run profits for lo~g run profits thus
_ ~rand. It can claim that all its products are 1 Made in India'.· This can discourages potential coqtpetitors. It also reduces ~e ~k of p~ur ~::rfy
·- bigger the patriotic sentiments. of the customers •and can attract lot of low prices will lead to volume purchase th~ reaching econouues o .. .
., •consumers who love to buy natural and Indian products. , in the p~oduct's life-cycle. R~liance Jio is a g~ e~p~ehigh. but the p~uct is .:.
. ' .• Q. 3. Big giants in the television industry like Samsung and LG have come • . . 3. High-Low Pricing: In this strategy. the pncm~ 1S serice . t • ) signals to ..
~t:Os
• ,. ,.•.: up with OLED, QLED, SK picture quality technology to .enhance the features sold with heavy discounts and pro~otions: The ~gh p in '::uc:t. This is. •• '.1
. •of the existing product to sustain the market share as most of these products lie the market that th~ is ~ense value ~ g that ~\.lgh interesl · •••
in the maturity stage of Product Life Cycle. Discuss the concept and marketing ~- done to ensure m~ase m the _foot traffi: freq tl • the Xiaomi 'l'WMUc:IS "'· •
. . th d" This 15 seen qwte uen y m r~
[strategies ~t could be used by the'~ke:te, during several stages of produd • is gener~te~ au _ . .. . . . .. ..,. ••. •• • •• ..-t<:·~,~..::
~gcle with the help of suitable diagt'a!P. -· •. , . . . , sale. •. •. • the most common pnong
. . This 15 -~
• ..:. ns. to execute,
For·PLC diagram. See Q. SZ • :.: .:·- •. ,\J~ / ., ....:\:: .. •• . ,·. ..- .
• 4". (Page 75 .
[P 75' . 4. Freenuum . . Pricing:
If h •many different
.
vanauo • . -~
'• • SeeQdA}',· -..le.•.•,,"·· •••• •
Freemiu~ m itse _as ail ble for free for a certain d~tion on}.j?@~'J
~.:....,..,,,,...;.- .. 5ee··Q 35• ,•~---~-20ff~:.
,4,u:1:1o.rt#llge.
IJWJA. OMM.~ •
.. :f'::..·~ • .·,,. •..,···: i;.·... ._>·. . .,. - . . .
• • • . .,. . ~:' :
age •.
•• •• ••. - • .. •
[Page 76 variants, the product 1S av a ' . . . . .. • • • -~- .
0.... . . . •'-.'-~\c- '. ~ , -~-..~;·.. . • .
.
.. .. -~ ·, ' I·
 __-,
- '
262 Shiv D~ DELID UNNERSITY ~ERIES . • l. • / PRINCIPLES ~F _MARI<ETING-2021 (NOV-DEq 263
the ·customer has to purchase the license· tq continue using. A~other variant is It can actively JOin Green Product Sales' or other imil
based on usage threshold, the customer can use the product until a certain usage its message to the target customers. Since inst~ationar p;gramme s to.spread
threshold is hit (number of transactions, number of users etc.) after which the required in case of selling air purifiers hence nal anllindemon
I~
• stration are
' perso
customer is required to buy. • . . . tool for the brand to promote its products. For this the brse d g is an .
im rtant
po. •1~1\1'1
"---p· Psycholocncal Pricing:.Th
5. Decoy owuu e prices for similar products is set and knowledgeable salesmen. Air purifiers h . th an liminar~un:es qualified
, o- 1 .,_ . SAAS • l d t 't b
differently to drive more sales for the cheaper a temative. companies use partic es, us nu es, ·
actenas, smoke e1P m e e
particles pet d d tion of dust
,~
• •this for driving sales to a specific ·1 . d hi . 11en
plan. Reta1 store~ -~ t s at times too, to drive All these benefits should be conveyed by the bran'd t .ants ertpo _and mold
more sales to a new product. ·1· f · 0 1 cus
. • , . .. prove th e uti 1ty o 11:5 product. ~e brand can use both A omers m order to
6. Predatory Pricing (can be illegal): In pr~datory pricing, the product is TL (Above the line)
.and BTL (~elow the hne) promotion strategy. In BTL it can use personal sellin
givenaway for ·free. The company maf _be making loss on each sale but this is
by employing good number of experts to sell' and manage the chann .1 ·~
potentially done to drive the competition out of the mar~et completely. One ·I • · e1 across thg
example of this is Uber when they_ started, they were losu~g money on each country• TV commerc1a s can communica te value to its customers, Smart printe
transaction. Another legacy example is of Internet Explorer. This was provided for ad strategy can act as a bonus for the brand. With the combination of ATL and )f,
• 1)~0\~
free with the OS by Microsoft. In those days, Netscape Navigator the prominent j BTL, the bran_d c~ create a ~trong pro_motional strategy. Presence of e-commerce
web browser in the market was a paid product. • I. store cai:i assist the ~rand promoting and selling its products. Through the
. use of video marketing, the brand can try to show to potential new customers
7. Dynamic Pricing: This is something we have all experienced in case of Uber.
The price is changed based on the demand and/ or supply; known as surge pricing who haven't yet made ·the plunge to buy an air purifier, exactly how they would '-..,t,e~,-a
in case of Uber. Hotel room benefit by using one. It should be noted that upto 24 % of consumers who use ·of, •
booking, flights booking are other examples where to-~
dynamic pricing is widely used. social media use it to look up for the products and channels before they make
• • .
In the an electronic purchase. For users who use social media more than. thirteen and a
Product Developme nt Lifecycle, defining and deciding the Pricing .~
strategy at launch is one of the crucial half hours a week, 65 % of them check social channels before buying a consumer
• d~ions" that paves the way for high electrical good. Therefore a good online presence and positive social media ·• ~
prod uct ad option. , •
• .. ._., '!"":. ,_. • • ,. , • -~ ·".
'<, I
•
. feedback can prove to be helpful for the promotion of brand.
1_.,.,..-
Q. 5. A company is planning to la~ch air purifiers to curb the problem of
air pollution in Delhi-NCR. If 1you are appointed as a promotion manager Q. 6. In the rural areas, if is sometimes useful to· package quantities small~
of this leading company, what promotion-mix would you suggest attaining than those sold in urban markets. You are employed as a marketing manager
' companies' objectives? .. ;/i' ., of a leading FMCG company, which is planning to offer tomato ketchup, 6-
,,.
Ans. Promotion-mix is an important element of marketing mix. It is concerned shampoo, and oil in small sachets for rural consumers. Suggest the appropriate
. rural marJ_ceting mix strategy for the success of the firm. • ¼
~"~e'l
with the activities that are undertaken to communicate with customers· and '\0\?}~'
distribution channels in order to enhance the sales ·of the firm. The promotion ~· Ans. Marketing mix for goods consists of 4Ps, viz, product, price, place and ()'
element of marketing mix aims at informing and persuading the customer to buy • pr9motion. These mixes need to be modified accordingly on the basis of markets
ra that the firm is catering to. As far as rural markets are concerned,
the product and informing him regarding the merits of the product. Promotion whole marketing
·' mix needs to be changed as the scenario of rural markets is totally different from
-mix is a specific ·combination of promotional methods used for the purpose of
, an urban market. In the given case, a leading FMCG is planning to offer to~to 112,.S-~
selling a product or a family of products. A leading company planning to launch air
purifiers should carefully decide its promotion-mix. Since it is dealing in electrical
l·. ketchup, shampoo and oil in small sachets for rural consumers. The followmg ~~j
r- marketing mix strategy will be suitable in such a case. . . . lo~~!
appliances and air purifies, it should have a consumer-friendly promotional
• policy.that should be reflected in its slogan. For example 'Breathe clean, Long life._
•
1
Product. Since the rural market has low per capita income and less
-
• purchasing power, hence a vast majority of rural people require low cost,:
~'1
~01
The co~pany should be determined to treat every customer with special care sturdy and utility products. Hence it is important _for the marketers to
t
and so m order to create and maintain its customer base, it should possess an . redesign their products as per the needs an~ reqwremen~ of the rural
\~
improved~ innovative visionary promotional strategy. The company sh~~ld consumers. In the given case straight extension s~tegy IS used by the I
rely ~eavily ~n the tra~tional means of promotional campaigns like telev1s1on company in order to attract- rural consumers and mere~ sales vol~. •
?1edia and pnnt advertisement for bringing awareness among the masses abo~t Under the straight extension strategy some products are introduce d~
its products. In or~er attract youngsters, the company can use social media minimum modifications. For example in the given case the company
platforms and ?nline tools
brand should
websites, Facebook, Twitter, Instagram etc.
~t becoming a household name. The brand should promi~ its
1?e planning to offer tomato ketchup, sham~ and oil.in small sachets for.
rural consumers. The main benefit of this strategy IS tha~ the com~y
customers quali~tive g~ alo~ ~th sense and sensibility. It should adopt_the doesn't need to invest in new research and develo p~torm an~
process of eco-frien':'ly design 1~ IS selling air purifiers to cut down pollution, Moreover, the consumers get the same product m smaller :~~ti~.at "'
It shoul~ take part m various enVttOnment protection programmes, events and_ fair and reasonable prices.
seminars to create a~areness about the pollution and its harmful consequences, -
• • •.: ' ... w
Price. In order to cater to ~e n~s of rural market, ~~~-sh Q .!
.. ..•
.
\
• ..
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264 Shiv Das DELHI UNIVERSITY SERIES
,-~- ·-
' •• '/,'v-'•'•'""-'. •••
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.
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. , 2022 (NOV-DEC> ·. · ' '· ',;:; · ~-
aim,for low c'ost· products. Such pro~ucts are within the reach of rural ...-,...:,.,_,..
belong to low income group and have limited ~N~me of the Paper : Principles of Marketing · · · ; l~
,
consumers as • theyOfferm·g :products m • small sach e t s 1s
• a good idea . Name of the Course : B. Com. (Hons.)
purchasing
. power.
. as Semester : V
it can be sold at a lower price. Low:~ pnces can attract_ large number of ..11
as their buym·g dec1s1ons are h~gely guided by -the price - Duration: 3 hours ·•1
rural consumers al' d t tu •• • M. . I.S
.,;

I
. Rural·consumers are not usually qu ity ~- s a s co~c1s1ons. They are All parts ofa Question must be attempted together aximum Marks: 75
more price-centric. Offering smaller quantities automatically reduces the Attempt all questions. • .. •
price of the products. Hence low priced products always attract the rural All questions Carry equal marks. . - •
,·:-
•• Q
. • • a •
1 ( ) "The aim• of marketing is to make sellin su l....--i
,, . •. ,_..,,
~- ~¥.ic~(Di~tribution). Oistrib~tion ~hannel management is the biggest this statement explain what is marketing. • g ~ous. In the light o£ - ~
challenge in the rural mar~ets: beca1;1~e. the consumers are scattered (b) H?w d~es c~ange in a co~try's population.age-mix and the - of~. . j l'
and problems like _commurucation facilities, l~ss off take and scattered and racial d1vers1ty affect. the marketer? . . · e.,
distribution are present in the market. At times,. ev~n • though rural . Ans. (a) See Q. 1, Chapter 1. • . . . (Pa 8 .-
people aware of substitutes, still they are forc~d. to buy whichever
are
brand is available with the local shopkeeper. This _1s the reason why
• (b) Country's population age-mix and the growth of ethnic and racial div
affect the marketers. Change in country's population age mix is an important el erstty
1 ·. •·
l
~keters are now focusing on direct ~is_tribution channels like haats of demographic environment affecting the marketers. . . . _ement • '-e) i
and agent distribution system villages with local yillagers working as . Age is one of many factors that ~an affect the success of marketers. For example the . ;,
their agents. T}le local agents not only promote the product but also •. • strategy of marketers w~uld different when the majority of population comists -•
take orders and keeps the inventory. In the given case the products .in• of s~hool and college going children as compared to when the population consists 11 :!
question are less in price. and small in qucU1_tity and packaging.. Hence of high proportion of old-aged people. Age b~ds directly influence the types of 1 • ..-i

direct distribu~on along with agent distributioi:i system is most suitable.
• Easily accessable areas aµi be reached with the..help o( direct disa1-bution
. channel. On .the~other-hand for not easily accessible areas, marketers
can opt f<;>r agenf_ distnliution system. Avoiding lot of n:u,ddleme~ in.
the distribution~ chain helps the marketers in keeping the price of the
products as low·as p6ssible. It is important for the marketers to carefully
choose the distribution channels so that they can el).Sure easy ac~essibility
of products for rural consumers. Generally local rural producers follow
, direct distribution channels. On the other hand national level producers
• opt for indirect channels or go for a combination of direct distribution _
_along with agent distribution system. · ,.. . • audiences externally create an absolute need to identify effective ways to communicate
-- Promotion. For promotion of products in rural areas, a separate strategy
is required. Television ads, internet advertising, social media promotion
etc. are not very effective in rural areas. Still large number of rural
people use radio as a tool of entertainment. Radio advertisements can
be an effective tool of promotion in these areas. Publicity through special
shows, nukkad nataks, films with the help of mobile vans etc. are good
~~ods of promotion. Generating word of mouth publicity through
opuuon leaders, colourful wall. posters, advertisements in local language
news-papers can also
very eff~tive. Village fairs and festivals are
good venues for promoting products in the rural markets. Marketers c~ .
also conduct puppet shows, dance dramas and prepare mythol~~c~ •
songs to attract rural ~nsumers. It should be kept in mind that opuuon
leaders pay a key role m popularising products and influencing in rural
mar~. Educati~n among rural youth is also increasing. Their exposure .
to outside world 18 gradually increasing. For them television can be used
as a tool of promotio~ • • •
(
produc~ as the ~afketers would have interest in developing products for younger i \ J
populatipn and vice versa. For example, when the population has large number of · ·_I
. young people, products related to sports; fashion, lifestyle, fitness, grooming etc. •i
k.. ~oul~ attract, the customers. CJt: the other hand, if proportion of old aged people is 1
•:: .. high m t~e pop~lation, marketers would be interested in products like medicines, .,
r·.,. pension plans, retirement benefits, Health insurance, natural and herbal products. j
r' Similarly when there is hi~ proportion of children and kids. in the populati~ . l
,. marketers would focus on products like toys, Baby care products, tricycles, learning
games, £unhooks etc. . . - 1
. Changes in ethnic and racial diversity also influence the marketers. The increasing
j
ethnic and racial diversity in both-organisations internally as well as th~target -~ 1•
1
product and brand decisions. Customers in different cultures have different values; \
experiences and ways of interacting. In order to deal with ethnic and racial diversity 1
Modem day marketers adopt diverse marketing practices. Such marketing practices ·'1
aim at reaching new customers in different racial, ethnic; cultural or social groups. • •
It is very important for global marketers to acknowledge that marketing must offer ,
alternative ways of communicating to these diverse groups. It helps t)le marketers in J
developing a mix of different co~unication methods, in order to read.' people in • _ . ~.
each of the diverse groups present m the market. For example, McOonald s has done· . •.. 1
extensive market research on ethnic and racial ~versitr. The brand's 'I am i&' . ·_. Ji
campaign is very popular among people belonging to differen~ cultures, countries IQ\d.
ethnicity. Harley Davidson start~d marketing its motorcycles to ~omen by conductklg, .
•classes to teach women how to ride motorcycles. Proctor and Gamble has pat-~;
lot of money in the black community. The brand developed various commeidals
featuring }:,lack families that reso~ate with ~c~-American consumers.
in 2017 came up with an advePtiSement campaign that featured a cast.~ ell~;
individuals singing various lines of the patriotic the~e 'A~cc, t~ •
Honda in India is a very good example of how ethnic and radal ~versity affect~-

·•. ... 273

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 PRINCIPLF.S OF U A ovr-r.n. T

274 Shiv Das DELHI UNIVERSITY SERIES . . ..~uNG-2022 {NOV-DEq 275 .

... .1. ... c. (a) A buying motive means what m·d - · - · ••
r~·~*•• keters Its Ad-Campaign 'Desh ki Dhadkan' targ_ets all the cultures, religions d :i9 a buying m?tive ~- • • behin . uces a customer to bu •. - od .
ii every purchase. . . ya pr uct. There~:-:-."'""
f ... :~unities that live'in India. The Ad-Campaign was a great success for the bra:~ Buying moti~es may_ be classified as-Intema.l ~d Ext· . . :·
. • or • Internal buying motives are inherent in th . els of emal Motives.
'· (a) uHolistic marketing acknowledges that eve~thing matters m • marketing and •, the basic • need s.l'k • from
l• 1 e h w:iger, safety, comfort, e pleasure
nun etcconsumers• They anse
I • broad, integrated perspective is often necessary. Elaborate the statement. External
; buying motives are those which a c • . . • •
1,
I\ .a (b) Explain how the marketing of services is different from the marketing of8 e,cternal env~onment. Social status, social acce 1earns or _acqwres
"' from his ~=:w
goods• . • " ' Income, education occupatiop Ii, . evement etc. _are examples
• • •7 .of such motives. infl , n, re gion, culture famil and social
f • Ans. (a) See Q. 11, Chap~er 1. - , ., • _ . [Page 10 envir~Il!11ent uenc~ external motives. - . , Y ........i
,.i (b) See Q. l(Or) (a), (2018). . ·. • [Page 220 ~tional ~d Emotional Motives. Rational motives are th~ which .
\ .I •
• Product. A product is any good or service that a consumer wants. It is a bundle logical reasorung and consideration of economic conseq Th . are based on
i • of utilities or a cluster of tangible or i~tangible attributes. _It requires decisions w.r.t., durability and depen~ability of the product or service.~~~~: ~ude cost,.
l•
f the size and weight of product, quality of product, design, volume, brand name 1,aS~d on personal feelings. These motives include ego· presti ymdg are
i •
. packaging, range, testing, warrantie~ an • d aft l •
~r sa es-s~rv1ce e c.t ' . Prod uct and. Patronage Motives. • 1
ge, ove etc.
. I.I Product motives are ' of two types an_ aua.-uun
. and
The 4Ps (namely, product, price, place ~d promotion) _are s!andar? components . secondary. Pnmary buying motives are the reasons due to which
. {l of marketing mix .in case of products. But__ m case of s~rv1ces (intangible in nature) one class of products rather than another. These motives arise directly from
cm:=mi!:
f
this marketing mix not ~ufficient. We need_ to expan? the 4Ps of marketing by _needs ~d wants. These ~elude the desire for health, beauty, knowleclge,
! adding people, physi~l evidence and process into the picture. In the recent past, it .recogrution etc. . _. _
,I,..
•_has become more_ co1:11111on to add. ~ese elements to the tradi~ional. marketing mix • Secondary or _selective b_uying motives induce consumers to buy certain kinds of
making it a combination of 7Ps. This lS called extended maTketmg InIX. products. These ~elude desire for convenience, dependability, durability, econo~ etc.
r
I
Tangible produ~ are easier to·market as these can be shown, touched and displayed, . Patronage motives refer to the factors that indu~ consumers to buy from certain
t whereas services are intangible and are provided to satisfy customer's needs. outlets, brands or manufacturers and not from other. \ ..,: . .
I
Difference between Product and Service Marketing : There is a lot of difference in buying decision of a soap and a house. Different
, .
I.
Basis • Product Marketing Service Marketing decision-making behaviours are used by a buyer for different products. According
1- to Howard and Sheth m9del of consumer buying behaviour, types of comumer
r _- (t) Meaning Prodqct marketing is the Service marketing IS the decision-making
i.
vary considerably and are classified as follows: .
j ' process in which marketing process to offer various_ kinds : 11'. 1. Routine response behaviour is usually
found in case of frequently purchased and
"
.·. ..
,~·v iI activities are undertaken to of services which can neither low cost items. Lengthy search for products is not attempted and
hence, the demion
! sell a specific product. .l effort needed is barely minimum. Though consumers brand conscious,
i~- be seen nor felt. . but they
; (it) Marketing 4Ps 7Ps are also aware.of alternate brands. The purchase decision to buy a soap falls in this
.
•' '
~· ,:,
mix Product, Price, Place and Product, Price, Place and category, herein, the products are purchased quickly and with a little mental effort ,
Production. as per personal liking. . · · . · _ · · • ••
·f .. Promotion people, Physical •
t ·- 2. Limited decision-making is used in the case of purchases made by the comumen
;,... evidence, Process.
},
less frequently. The investment needecl in this. case is comparably more. The consumer .
(iit) Delivery Products are delivered to the Generally customers reach. may acquire information about all the available brands and some amount of mental •
t . .
;
customers. stores to avail the services ,exercise would follow to arrive at a final decision. For epmrple, buying a laptop or
(iv) Transferability Prodti~ts can be resold - Services cannot be further :television set requires a· moderate amount of time, for information gathering ad
. :deliberation. • •' .' . · ..
transfer.red. ,. 3. Extensive decision-making is required when a consumer wants to ~ - - •
L.
.! (v) T~gibility
,'.;
Since products are tangible Services can only be explained unfamiliar products which are totally new, having a_-very high unit ~alue aud~-~l~I
-t
.
.. .
{ . they can be shown1 displayed as they are intangible·. · ., bought gen~rally once in a lifetime, for example, buymg a house iequues ~ . ~ ' .
,·r
r •. ' .. and felt. complex type of consumer .decision-making. ., . • _. •. • . • . , -, •... •_· .•·:-,.<-~~-~.;ii
(.- :ii (vi) Customisation Most of the products are. ·Services are rendered- (b) See Q. 1, Chapter 3. . . .. . . . , :· .·
.. :, - standard and are marketed . absolutely specific
(1) Mobile Phone. In today's day and age~ one cannot live without a
i . as • per phone. Every one (almost) owns a mobile phone the~ Qf wblch:~·
' "I
.,. as such, few: changes though needs of the customer.
j '. l • from tl,000 to tl,50,000 depending upon the b'1ying capadlJ. tl,le. , .
I can be made. . .
There can be demographic segm~tation
- co~.~:~~- !"~
:4; • Q. 2.,(a) -~~._are_-~! •• suitable gender of the buyer. • • -
types of -~uying motives of a ,c~nsumer? G. _ ive _.... • • . . .· . • • :. •
~ - ·•' • >• • •• .. • • • . • ... ; ·· • .· . .
7 •
Apart from that behavioral segmentation comes
•• • ,ti,) WJiat i s ~ ~ sllpt ways 1o segment the -:'~.f~, • usage, Rate,-~adiness_s~tus, user sta~ loyalty etc.
#
(i) Mobile J>hoM,.- :.-· ,: •• -... : , :'., . :•· · 1 (ii) Bicycle · ' ·· . ·-. _::.

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 276 Shiv Das DELHI UNIVERSITY SERIES PRINCIPLES OF u A D V ~ .
. ..~uNG-2022 (NOV-DEq 27!
----:-(ii) Bicycle. The market for bicycles can be segmented on the basis of demographic ...
-,-._ r-r~ A good approach for firms who • A . . -
• and psychographic factors. Demographic factors include-age, gender, income,
have assets that can be applied int0 _dopted ~y ruche marketers who are t . • 7
. status and generation. Bicycle is a very important mode of transport for supplementary markets. pioneers m their respective markets. ) .
' young college going students belonging·to low income group. Similarly many
low income workers still use bicycle as a means of tran~port. Psychographic Q. 3. (a) What is product mix? Explain th · . i
. j .
segmentation also plays a key role as many people use bicycles as a means of . (b) What is the significance of packagin : ~ous product .mix strategies. . 7
fitness and regular exercise. .Some use them as a part of th~ir lifestyle. Many Ans. (a) See Q. 10, Chapter 4. g. .are the matn areas of concem?S iI "'
.} :,j I
bicycle brands prom~te their products as a tool to maintain physical well- (b) See Q. 23 and Q. 24, Chapter 4. ·,.1 IP• 59 .,,,,. j
being and fitness. As per the needs o~ the customers, various bicycle brands • o ,~I
• offer different types of models like road, m~untain, hybrid, All terrain etc. ,
(a) Differentiate between line extension :nd brand extens· • .
• • Or • .. l
(b) "Product support ~rvices ~elp the seller augment the~~ sold.,,-Exp~
t (a) A consumer wants to purchase a Laptop. Explain his buying decision process. 8 • i
i
r (b) Differentiate between niche marketing and segment marketing. . 7 •. ·An•. (a) Line extension refers to.ihe .expansion of an existing pmdnct line.~ I
1, • Ans. (a) See Q. 14(b), Chapter 2. • : • · - [Page 38 ' 1
~t~nce, a ~e~fume manufacturer IIUght mtroduce a citrus ~ariety to its perfume line.
(b) Segment Marketing and Niche Marketing. The firm may decide to divide b S1rru_lar_ly, Juice !11:u'ufacturer might introduce new flavours like mango, strawberry . J
the market into sub-markets having homogeneous features. Market segmentation is i ic
etc. m its lme of Juices. Thus Line extension adds variety to its existing products for · · ~\f;J
the process 0£ taking the total heterogen~us market for a product and dividing it th~ sake of r~aching a _more diverse customer-base and enticing·existing customers 1i
; t
into several sub-markets or segments each of which tends to be homogeneous in with new options. In simple words, Products-Line extension is a marketing strategy
all significants. Market segmentation is customer oriented and is consistent with the 1
mar~eting concept. • • that uses an existing brand to introduce a new item into the same product-line. The •lo
r t< new item may differ slightly. from what a marketer already offers. Following are J
l ,r,.:
. Market segmentation enables a-company to make more efficient use of its marketing certain ways in which a product may differ ,.... i ,1:a~
resources.·Also it allows a small comp~y to compete effectively by concentrating on ,• . • Ingredients • Flavour . ·: ·,£_ "'4-..., • Form :\c
one or two segments and creating its niche in the market. • • J
'
• • • Colour ·, • Packaging size t~ ti
The market could be segmented ·in different ways. Instead of mentioning a single · l .,,,,.
Brand extension, on the other hand, refers to the expansion of the brand itself "i
market for ~hoes, it may, be segmented into several sub-markets such as. shoes for \ .,,,,.
J into new territories or markets.. For instance, An automobile manufacturer unveils .,,,,.
executives, doctors, college students etc. Keeping in view the availal:?le resources, the
•1 a line of automobile access?ri~ ~e seat_ covers, steering co~ers, batteries under· ~ts
marketer will ded.de the target market and then to satisfy it, an appropriate marketing . - _ . ._
1 company name.
mix will be created..By making efficient use of its .marketing resources, the firm will • t,. Since the brand is already established, it can serve to drive customers to try new
be able to create its niche in, say, the shoe market meant for Doctors only; the firm: . , products that may relate or unrelate to the older product lines. In other words, brand
.·,•
iI . • is able to satisfy its Doctor-customers _by concentrating on this market segment only.,> ,. extension is the introduction of an altogether new product that relies on ~e name
The marketer must·keep in mind the following points for segmentation to be ,. and reputation of an established product. Nike is a very good example of brand ...
effective: . • .- • ' [~C
, extension. 1n· addition to sports and athletic shoes,. the company also sells clothing, ,~
i-i (1) The bases for segmentation must be measurable with obtainable data; • . ,, accessories and even technology products like fitness bands and trackers. brand · l
'
·1
,.1- (ii) The segments identified must be accessible thr01.~g}:t existing mru:keting extension strategy aims to leverage the brand equity of an established brand to mcrease 'i
'I • • institutions, and l the ·chances of success for the new product or service. .
• (iii) The segments must be large·enough to be potentially profitable. . . (b) Product support services help the se~er augment the product. Custom~ serv1ce ,,
Differentiated (Segmented) Marketing. It is also called qmlti-segment marketing. • is an important element of product strategy. A company's offer usually inclu_des ,,l
It is a strategy of market coverage whereby a business tries to cater to clearly- some support services,'. that can be a minor or a major part of the total offermg. i
identified market segments with a definite product and exclusive marketing strategy . Customer support services are concerned w1'th various • processes that make . sure 1be
. that
'!
customized to each separate segment. • • • • of the organisation.
the customers • are satis
• fled wi.th the products and. services
b the marketer that they
• Concentrated (Niche) Marketing. It is a1so·a strategy of market coverage whereby ,. needs and demands of the customers must be ~ed Y th · • component 50 of
a product is· developed and marketed for a very well-defined, particular segment of sprea4 a positive word of mouth. After sales services are e maJOr
. _ .i.' .
.- i
i•
-
the consumer -population.
I customer support services. . . ·1bis. conect statement. Customers •: '
Differentiated Marketing Concentrated Marketing i After-sale service provides a cutting edge. . d a~o: term bond with customets. •;
iI 'f
must get full attention even after sales. To bull . ~tomer satisfaction but also
r
• Ideal for companies wishing to grow.. • Typically adopted by small firms i
'
companies should not only train their salespersbot~ mcustomer feedback and identify
r - just beginning their operations. .
I • regularly conduct_ fc_>11ow-up _programmes.tot o. am customer satisfaction, sale$persc>M
I
'i'
i • An essential apptoach . of big • It is a required approach for firms possible ai:eas for improvement. To : PSP (Personal Process). In
' companies intending. to def~nd their with inadequate capabilities •and t must provide post sale follow-up thro gh be nd transactional selling. They must
market share. skills. •· modem times, the sales people have to move . yo • ·
-
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 PRINCIPLF.S OF MAT}VUTn,. T • •
278 Shiv Das DEUil UNIVERSITY SERIFS nnc..111'\IG-2022 (NOV-DE
. 279
:--:--. go for Relationship Selling and Strategic Partnership:·As alinost all the products of • • . .
(a) "Nonstore retailing has been growm·g tnuch faster than tore q •
different manufacturers have the same features, it is only_ the After-sale serv'ice which Explain . s retailing.w "-•·
• (b) Differentiate between cost based pricing d • 'a1 · · 8
: differentiates the products from one another.
Q. 4. (a) How _does a vertical marketing system differ from a conventional Ans. (a) Non-store retailing has been growinan v hue£based pricing? . : . • 7
·1· • 1 d g muc
. aster than store retailing .. · - ·~ .
marketing channel? Explain • • . • • 7 N on-store reta1 mg me u es e-commerce, drr·ect se11mg, te1emarketing etc. All these• •• i~
(b) Explain the various factors which influence the pricing decision of a firm? 8 have evolved throughout the years and continue t off
Ans. (a) Conventional Distribution ~annel. It is most common distribution . of buying 24 hours·a day., 7 days a week and de~iv er ~r;:mers ~e ~onvenience •
ery e location and time of -. · i,
channel which comprises of a producer, wholesalers and Retailers, all of them being· . their choice. The main reasons behind growth of non-store
• be . retailing .. • • J,t
separate entities acting independently. • . . are positive ,,,
changes m consumer hav1our and advancement m· technoIogy Non-store retailin" g ,
Vertical distribution Channel. It may include a channel of producer, wholesaler and
• h ~onv~ence, lower prices a I
wit ·od .
• h
Provides• consumers • • ' arger pr uct selection. and _.. •
retailefS, all being controlled by one entity, the owner, which generally is the producer. •mnovahve s oppmg expenences as compared to the traditiOnaI store
Examp~e: Marketing System of Zara. _• • • • retailing. In • ; _
, . modem digital age, traditional brick and mortar retail stores are no 1onger
.. f b od the only .
I Conventional marketing system Vertical marketing system . o~tion or con~umers to uy pr u_cts. Non-store retailing or the sellin of
Basis
without a physical storefront, has gamed huge popularity in the recent gt n!oods •
•: Ownership/ Such channels consist of one or Under such a marketing : -1,C
of establishment is r~~ativ~ly I~ in ~e case of non-sto~ retailing. T h e = ~
• control more manufacturers, wholesalers system, one member of the • m nature. Since the non-store retailing heavily . e
with non-store reta1~mg 1s vana~le
/ distributors and retailers that channel either owns or wields , .J ('
relies on the use of internet, ~~mg up of a non-store retailing business m. easier as
operate under independent sufficient leverage to •control compared to that of store retailing. Non-store retailing now accowtts for a massve
ownership. Each business answers and coordinate the activities of I f
.• percentage of all consumer purchases and it is expected to rise in the near future ;
to its own owner, shareholders or other members in the channel. · A lot of non-store retailing brands have established themselves as reliable sellers: ...
board of directors. The channel members continue . Hence, more and mor~ J>e<;>Ple now-a-days prefer to shop without physically visiting .. • • J .x,
to operate as distinct entities the retail stores. Amazon 15 a perfect example of non-stores retailing. The company
but become accountable to one has large number of warehouses but no physical store, Amazon is the Number one .
owner or the most powerful ' non-store retail store brand in the- world. It delivers· the products at the customer's
channel member. mentioned destination, anywhere in • the world. Direct selling, telemarketing,· ..
. Cooperation Each member in a conventional Members in a Vertical marketing ' 1 Automatic vending, direct marketing etc. are other forms of non-store ~ g that
marketing system, focuses on system, tend to recognise . • "·, have gained popularity in the recent past. Due to growing popularity of non-store
minimising costs and maximising the symbiotic nature of the •. . retailing, more and more companies are joining the nori-store retailing sector. In India .. l
its own profits with little regard relationship between all channel ~: . ~. , (, __ . Flipkart, Myntra, Shop clues, Big Basket, Reliance Retail, ~ n etc. are few big
).:[...-names in the non-store retailing sector. Telebrands, Naaptol, Home Shop .18 etc. are . , ...
for other channel members. members and aim to maximise;
benefit through cooperation. 1 ~- .:, . some other popular brands of non-store retailing India. .. •
•. , -. (b) •
•. Responsibility Suq,. .- a system•· limits- the Under a Vertical system, the .: :: ....
; Basis . ••
Cost- based pncing Value-based pricing
responsibility of each member majority of responsibility tends .
of the channel. Retailers focus to fall on one channel' member. : . '• Description Based pnm • arily on data from Based primarily on information~~ • -Ji 1
on selling products to customers The additional responsibility <Cost calculations. about the value that the customer ,. • • ,
,' attaches or can be induced to ;~ .'..• \''
while (lllanufacturers focus on is not a cause of concern for l attach to the offerings. :' .
making products. Wholesalers big companies as they have
focus on moving the products strong management teams. ' Cari come close t<:> _exhausting r :J ·1 :

from one place to other. . • Vertical syst~m can create lot J Strength Basic data is easy to obtain, often the customer's willingness to ,: • : . _•
of challenges for smaller firms. • perceived. as fair by the customer. pay while taking into account r .• ·.
•t

-~ Problems Underthissystem,communication Creating a Vertical distribu- , · '. •i ., _ the ~mpetitive situation _and
breakdowns often occur between tion system can result in :1 • .' .r . futanctal consequences.
• manufacturers and wholesalers reduced profi_t margins. It is l Weakness Does not consider needs _and It can be very cruillengmg t •. -, :
J
' or between wholesalers and very challenging to manage all· competition. It can result in to obtain basic information. k·.,~ ••
': ...

:, retailers due to technical or the members efficiently under suboptimal pricing that may result Implementation may involve ( •-
logistical issues. the Vertical marketing system. _ .. j in too low or too high prices. This additional ~ts and result in t~
..,. .. . (b~ ~- Q. 31 Chapter 5.. [Page 87 can discourage sales. _ resistance. Customers ' may
,:~ perceive certain aspects of value-
.... ,"· . o,· ., based pricing as unfair. -
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I ,
 280 ·Shiv Das DELI-D UNIVERSITY SERIES
Dete rmin g the adde d value-~-·
f•;'."'r""".
-..--:-,...... ,. Example ~.
Cost plus pricing: Calculating the
~-.. ' ·_;'! • ....--......-,)
i-• ; ~- ,.,.
• 1......

of a prod uct or service for

-
cost· and determining a mark -up determining
t for profit. • the custo mer or
f wha t a cust_omer is willing to
f
r.
i
pay for a give n product and
then identifying the resulting
cont ribut ion to profit.
n~w cust?mer~ than to letairi
(i.s. (~) "It ia•:five• ,tiines more e~pensive to find
lain relationsh1p marketing? 7
existing custonieM":.tln the light of this statem~~t,.exp
Wh~ t factors have l~d to its
·(I,) Wha t UJi Integ rated mark eting com muru catio n? 8
-- grC>wth?· •. -~ •
. . [Page 167
Ans:.(a} See Q. 14, Chap ter 9. [Page 149
(b.) See Q. 17(b), -Chapter 8. • -•
~etin g Communication:
Factors that have led to the grow th of Inter ested Mar
~uyi ng p~tterns. ~ave changed
1.-th ange in· buyi ng pattern. 1n· recent years, the
bein g sold m traditional markets
and more products are being ~old onlin~ rathe r than _
therefore need IMC. -,
of digital med ia the consumers'
2 Growth of Di~t al Media. With the constant grow th
- resul ting into a major shift
control over information and awareness has increased,
shru nk and anybody sitting
3. Emergence of global markets. The worl d toda y has
gence of an unified culture has
anyw here am buy an~ g-·f rom anywhere. The emer ..
... givenpush·to Integrated Marketing Communication.
of all kind s of consumer help
. .4. Availability of Database. The availability rof data
with the cti.stomers through
the producers· in influencing and building relations .•
Integrated Marketing Communication~· _
olog ies. The technology has
5.-I ntro 4~o n ·of JieW,communicatiol\ tools and techn
, ..
our. daily life. This has allow ~
evol~ed so muc h that1 t·has a disruptive impa ct on
and communication: Consumers
consumers to have greater-control over ~orm atio n
i'.
wha t to hear , thereby increasing
• can be-choosy and have control on wha t to see and .
. • •.•
the role of IMC. ·
r·
·o,
digital communication to
(a) "Dig ital ~~~ Jing involves using seve ral forin s of 8
conn ect with pote ntial custo mers ".. Explain .. •
sham poo for. men ? .,_; 7
• (b) How wou ld you design • prom otion mix for a [Page 194
Ans. (a) See~Q. 44,.Chapter 9. . •
of men 's grooming. Building
(b) Men 's sha ~~ c~mes ~de r the prod uct category
·prod ucts. For such products and
a strong bran d •~entity 1S cru_cial for success of such
encers and Cele t,riti ~ !,or tlJe
~- . brands, ~ollaborations are done with ,the popu lar Influ
.... ~., aign is a mqs t for such a prod,ud
.
P ~ of~ prom~tio~. _A_ well designed digital camp
'
prog ramm ~ can do wonders
espe c~y m present di~ ~ age. An online loyalty din8
~dea be~ d is to build a com mun ity and keep expan
if'... . ~uch a product. _The
it. Apar t f;Pm su~ ~~ti ves, _specialists and dermatologists ·can be _used for
t:·· g with television and~ You~be-
the P ~ of promotwn. Goo d onbn e presence alon
•. , and healt h magazines 15 a
k- adv ~~g ·can. be a good op~on. Print ads in.f! tness
Barber shop s will be anotber
good.• t ~ Buying some adve rtis~ g place in popu lar
scenario, relying on .a S?lo.
-~ promo~onal tool; and saloons._ In P~ nt mark eting
has to opt for a combiJ1A~on
ti' • prom otio ~ tool u not a good idea. Henc.e, a 'marketer satisfy the communication
and
_. ofrpromotional tools that besf suit the bran d, prod uct •
1 needs of_-the company.
't-~
••••• ,.