MARKETING MANAGEMENT rs ! = EoMarketing Management MMPC-006 For Master of Business Administration (Banking & Finance)-New felp Note Gi, Inctnding <4 Question PP” fete aaa ad eee auel) SHRI CHAKRADHAR PUBLICATION (PVT.) LTD.‘Contact No.: 9958947060, 9810301740 011-49875698 II rights reserved. No part of this publication may be reproduced, stored in a retrieval system or a in any form or by any means, Electronic, Mechanical, Photocopying. Recording or otherwise. preparation of notes. substances. explanation, keys, tc. in the form of note (s) for sale based on none is permitted. HOW TO GET SMART CHAMPION NOTES HOME DELIVERED fo get notes by speed post, Email/ SMS your name, complete postal address. contact number, subject ode of the notes. ‘ot mote infiorrnation. callus st 99589457060 or email us at ignoustudynotes@ gmail.com or you can our free Andriod App IGNOUBUDDY at Google play store IMPORTANT NOTES (TERMS & CONDITIONS) 11. 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Consumer Behaviour Block-2 Product and Pricing Decisions Chapter5 Chapter-6 Chapter-7 Chapter-8 Product Decisions Branding and Packaging Decisions Product Life Cycles and New Product Development Pricing Decisions Block-3 Distribution and Promotion Decisions Chapter 9 Chapter-10 Chapter-11 Chapter-12 Integrated Marketing Communications Advertising and Sales Promotion Personal Selling and Managing Sales Personnel Distribution Management Block-4 Sectoral Applications and Emerging Issues Chapter-13 ‘Chapter-14 Chapter-15 Marketing of Services Digital Marketing Other Emerging Issues in MarketingS i MMPC-006: Marke: 1g Management Guess Paper-1 tied to follow sales orientation because the incentives. are based on Qt, Companies 2 cit po you agree? Illustrate your answer with real-life examples easily measurable errs business model thats focused on making the best product and services ABs Ss rrmang customers wants or needs, Typical, this approach wsef@gpastive, outbound ou irketing, romotions to drive revenue. aa ea sindeing "What does that mean? Why and when lo companies use a sales you might Be W orientation approach?” Usually if consumers aren’ approach. However, many companies choose to use 2 to sell their various products Sales orientation relies on the concepts that product for the best price, you can drive sales. ‘hs a sales department, it would be your reps job to condinée prospective custiimers thal they need your product. ‘Additionally, sales orientation companies rely 6n)promotional activitiés to help drive sales. For example, promotional deals such as "buy one gét'one free? are used/t@lincrease revenue by offering a good deal. Sales Orientation Examples Below are some examples of industries that might use a sales@rientation approach. (1) Insurance Providers: Insurance(is a goed example of a Sales orientation business because policies aren't created basedibn ‘ednsumer needs, but on providing the best coverage ‘compared to competitors. ThatSwwhy this isa highly competitive industry. Additionally, depending @n the type of insurance, this is a product that consumers don't typically seek out. One of the biggest hurdles fora salesperson of an insurance company is that they might have to convince people tha they need insurance to begin with. This is why insurante providers might Hseaggressive sales tactics and promotions to make asale. @) Retailers: The retail industry is génerallyknown for having a short sales cycle that usually sells people products they don'tneed. Additionally, this?industry.relies on using promotions, deals, and discounts to make ‘money. Retailéts don't usally éreate products based on consumer need, but on making the bestiproduction the marketiThink Apple versus Samsung, Plug, sift, customersidont need to have the latest trends, aggressive promotional tactics age Used to convince customers to buy products (3) Car Dealerships: Car sales people are generally known to use aggressive sales tactics and tions to drive sales. ‘entire industry is based on a sales orientation approach because they have to persuade tomers that they need their car instead of a competitors. ‘While these industries might use a combination of market and sales orientation strategies their approach is sales oriented if they use aggressive sales and promotional tactics without considering the wants or needs of the customer, Sales Orientation in Marketing: So, now that we know what sales orientation looks like in action You might be wondering, "What does that mean for the marketing department? . Ira Coes a oriented, the marketing department will be responsible for creating the rete Wey that Persuades users they need a product, even if there isnt any market research Proves they want or need that product. “t actively pursuing a product, businesses might take a sales orientation d approach, using both sales and market orientation everyone is a potential eustomer afflifyou make the best‘ A ee rece ee Ultimately, it's their job to create the desire to buy the product ecard In terms of the sales department, sales reps will spend time cold calling can ce ‘ promotions to make quick sales Sales orientation businesses often havea shorter sales NE | During a sales call, a sales rep has to deflect buyer hesitation, and convince the Perso” product ; Tha etch Fusing this pe of approech i that if your product or servi ls ag Nap stanly the best product on the market, then selling it should be easy Additionally, sales oriented businesses often look inward and are foc products and services, which isa good thing. While a sales orientation approach might seem like an outboun: inbound methodology to help guide you in the process sales plan used on developing outstanding \d technique, you can actually use attention to serve the bottom of Q2. Do you think that the Indian marketers are giving the required ith lesser purchasing power? the pyramid and try to develop marketing strategies for people wil Discuss with a suitable example of your choice. ‘Ans, Refer to Chapter-2, QNo.-1 (Q3. What are the advantages and disadvantages of Branding? ‘Ans. Refer to Chapter-6, QNo-3 Q4. Discuss the stages involved in the organizational buying process? ‘Ans. The Organizational Buying Process Making B2B Buying Decisions: The organizational buying process contains eight stages, which are listed in the figure below. Although these stages parallel those of the consumer buying process, there are important differences that have a direct bearing on the marketing strategy. The complete process oceurs only in the case of a new task. In virtually all situations, the organizational buying process is ‘more formal than the consumer buying process. It is also worth noting that B2B buying decisions tend to be more information-intensive than consumer buying decisions, As the marketing opportunity progresses, buyers seek detailed information to guide their choices, Itis unlikely that a B2B buyer—in contrast to a consumer—would ever make a final buying decision based solely on the information they see in a standard advertisement. The organization buying process stages are described below: Stages of Organizational Buying. 1, Problem Recognition. 2, Need description. 3, Product Specification. 4, Supplier Search. 5, Proposal Solicitation, 6, Supplier Selection. 7, Order-Routine Specification. 8, Performance review. Problem Recognition: The process begins when someone in the organization recognizes a problem or need that can be met by acquiring a good or service. Problem recognition can occur as a result of intemal or external stimuli. Internal stimuli can be a business problem or need that surfaces through internal operations or the actions of managers or employees. External stimuli can be a presentation by a salesperson, aniad, information picked up at a trade show, or a new competitive development. General Need Description: Once they recognize that a need exists, the buyers must describe it thoroughly to make sure that everyone understands both the need and the nature of solution the organization should seek. Working with engineers, users, purchasing agents, and others, the buyer identifies and prioritizes important product characteristics. Armed with knowledge, this buyer understands virtually all the product-related concerns of a typical customer. From a marketing strategy perspective, there is opportunity to influence purchasing decisions at this stage by providing information about the nature of the solution you can provide to address the the organization's problems. Trade advertising can help potential customers become aware of what you offer. Web sites, content marketing, and direct marketing techniQues like toll-free numbers and ‘online sales support are all useful ways to build awareness and help potential customers understand what you offer and why it is worth exploring, Public relations may play a significant role by placing3 dhar.com Sonchol ‘cessful customers and innovative achievements in various trade journals. (Note su jes about your : Meee Cee aaa ee viejo nat an ‘example of this. The video was created by IBM and isoffered as one of echnical specifications come next in the process. This is usually the Produ ify ofthe engineering department. Engineers design several lems detailed ‘penifcations about what the organization requires. ‘These specifications align with the priority list een inside NASA space flight center. Man in a white protectivessuit is holding on aoe ofthe structure that contains six mirror segiens forthe James WebSpace Telescope Sis of the mirror segments for NASA's James Webb Space Telescope. The mirrors were built by Ball ‘Aerospace & Technologies Corp., Boulder, Colorado ; ‘The buyer now tries to identify the most appropriate supplier (als9 called the vendor). The buyer conducts a standard search to identify which providers offer what theyineed, and which ones have a reputation for good quality, good partnership, and good valua for the money. This step virtually always involves using the Internet to research providers and sift through product and company reviews, Buyers may consult trade directories and publications)-look at published case studies (written or video), seek out guidance from opinion leaders,and éontact peers or colleagues from other ‘companies for recommendations. Marketers can participate in this stage by maintaifing Well-designed/"Web sites with useful information and case studies, working with opinion leaders to make advantageous information available, using content marketing strategies to make credible information available in sources the buyer is likely to consult, and publishing case stiidies about customers using your products sucessfully. Consultative selling (also called personal selling) plays a major role as marketers or sales personnel learn more about the organization's. goals, priorities, and product specifications and provide helpful information to the buyer about the offerings under consideration, Proposal Solicitation: During the next stage of the process, qualified suppliers are invited to submit proposals. Depending on the nature, of the purchase, some suppliers send only a catalog or a sales representative. More complex purchases typically require submission of a detailed proposal outlining what the provider can offer to address the buyer's needs along with product specifications, timing, and pricing, Proposal development requires extensive research, skilled writing, and presentation. For very large, complex purchasing decisions, such as the solution sale described above, the delivery of a Proposal could be comparable to a complete marketing strategy targeting an individual customer Organizations that respond)to, many proposals typically have a dedicated proposal-writing team working closely with sales and marketing personnel to deliver compelling, well-crafted proposals Supplier Selection: At this Stage, the-buyer scfeens the proposals and makes a choice’ A significant part ofthis selection iolves evaluatngthe vendors under consideration. The selection process involves thordigh review ofthe proposals submitted, as well as consideration of vendor capabilites reputation, customer references/ warranties, and so on. Proposals may be scored by different decision ‘makers using a common set of riferia Often the selection process narrows down vendors to a shost list of highest-Sebring proposals. Then the short-listed vendors are invited to meet with the buyer(s) Virtually Or lipperson to discuss the proposal and address any Questions, concerns, o gaps. At this stage, thelbuy may attempt to negotiate final, advantageous terms with each of the chore lisies egotiation points may cover product quantity specifications, pricing timing delivery, and term: “ gms of sale. Ultimately the decision makers finalize their selection and communicate i intemilly and to the vendors who submitted proposals sin Consultative selling and related marketing support are important during this stage. While there may be procurement rules limiting contact with buyers during the selection process, it can be helpful to ‘check in periodically with key contacts and offer any additional information that may be helpful during the selection process. This phase is an opportunity for companies to demonstrate their ‘esponsiveness to buyers and their needs. Being attentive during this stage can set a positive tone for how you will conduct future business.4 marketing Management (MMPC-006) ‘Order-Routine Specification: The buyer now writes the final order with the chosen Fae me the technical specifications, the quantity needed, the warranty, and so on. At this ere PI typically works closely with the buyer to manage inventories and deliver on agreeme™’ BOTT Performance Review: In this final stage, the buyer reviews the supplier's performanc® ae Ee feedback. This may be a very simple or a very complex process, and it may be jmitiaice’ PY © party, or both. The performance review may lead to changes in how the organizations work together to improve efficiency, quality, customer satisfaction, or other aspects of the relationship» From a marketing perspective this stage provides essential information about Rowell the produ is meeting customer needs and how to improve delivery in order to streneieiisstomer satisfaction and brand loyalty. Happy, successful customers may be great candidates for published case studies, testimonials, and references for future customers. Dissatisfied customers provide an excellent opportunity to learn what isn’t working, demonstrate your responsiveness, and improve: Procurement Processes for Routine Purchases: As noted above, the complete eight-stage buying process describe here applies to new tasks, which typically, require more complex, involved purchasing decisions, For rebuys and routine purchases, organizations use abridged versions of the process. Some stages may be bypassed completely when a supplier has already been selected. Organizations may also use e-procurement processes, in which an approved supplier ‘has been selected to provide a variety of standard goods at pre-negotiated prices. For example, an organization ‘may negotiate an e-procurement agreement with Staples that allows employees to order office supplies directly from the company using an 4pproval workflow in the ordering system. These systems help simplify the buying process for’ Foutine purchases, while still allowing appropriate levels of approvals and cost controls for the buyer, Q5. Explain “Product differenti n”. Discuss the dimensions that a company uses to differentiate its products. ‘Ans. Differentiation of your product or Services what makesit'stand out to your target audience. It's how you differentiate your products from)those of your competitors, and it results in increased brand loyalty, sales, and growth. Concentrating on your customersjis a good plage, to begin when it comes to successful product differentiation. What are they seeking? What are they missing that no one else is providing? What enchants them? What annoys them?)What makes them happy? What could possibly make them feel better? The responses to these Questions can Serve as a springboard for differentiation ideas. Fortunately, differentiation ean occur at/any.stage of your business—you are not required to start from the beginning, What: makes your product unique may be a newly added feature or capability Altematively, your product tould offer fewer features than existing products, focusing instead on a simple, streamlined expetience. Additionally/price, packaging, quality, customer service, and the overall customer experience when purchasing or usingyour product are differentiators, For instance, a cosmetics company may offer an ‘online toolto, assist customers.in selecting the appropriate foundation shade. A tennis shoe manufacturer ‘may allow customers to customise their shoes by selecting the colour of each component. Castomers are more willing to pay a premium for products that provide an exceptional, ‘experience. yisit necessary to differentiate products?: The purpose of product differentiation is to establish a tive advantage or to elevate your product above competitors. In other words, you don’t want to simply differentiate yourself from the competition; you want to rise above it. Differentiating your product is critical in any industry, but it is especially critical if you operate in a crowded market with numerous competitors. The objective is to demonstrate to prospective ‘customers what you can offer that other businesses cannot—and why this is beneficial to them. Kimberly Amadeo identifies three components of competitive advantage: benefits, target audience, and competition.5 it of purchasing your product or the values obtained by a customer as a result of p 18 your pi Benefits: Benefits Ty from features, which are the capabilities of your product, Businesses service They om promium on features, but customers care about benetits frcqently place 2 ntation highlights the distinct advantages of your goods or services, That is ae Sar vommmunicate clearly why your product is superior in terms of,quality, price, or is wy een compared to the competition ee cxperiene: entaion The cifferenated benefits of your product should: effespond to the racic pects and values of a defined target audience eon erereniating your product, consider who is interested in purchasifigat, why they want it a trove they want ito look, where they want to purchase it, and how muct they are willing to pay. I you're uncertain about any of those factors, learn more. Competition: You can only differentiate your p available. Spend considerable time researching products and servicessthat potential customers may conducting marketing research is an excellent way to, oduct once you aFesaware of what is already ‘compare to yours. ik Whats the purpose of a competing product? Who purchases it? Why? Where?Hay much money do they spend on it? Keep an eye on your branding, features, size price, and packaging to determine how you can differentiate yourself from the competition and,appeal to your target audience When you can more effectively align a product's benéfits,with the desires Ofyour target audience then ycur competion, you crete a differentiated fiGifuc Wit adds value customers How do you determine whether or not your product is differentiated? At the end of the day, your target audience determines which products on the market are the most valuable to them. Sales and engagement data provide insight into the degree to which your product cor service is differentiated Do not be concerned if you do not see the numbers you desire. You can always conduct additional research, add or modify a feature, or experiment with a newimarketing strategy. Make small, gradual changes to your product, brand identity, and marketing efforts to determine which strategies work and which do not Differentiation strategies for prodicls Here are a few examples of how customers use_prodiict differentiation to influence their purchasing, decisions. Differentiation vertical: Vertical differentiation occuss when customers rank their options from best to worst based on an objective metric such as price or quality While the measurements) are objective, the value placed on them by each customer varies. For instance, one meal atia restaurant may-contain fewer calories than another. To a customer on a diet, the lower-calorie meal appears to be the)’better" option. Another customer may place a higher premium on ¢8t and opt for the hiphe-calorie meal if tis less expensive. Distinction horizontale: Horizontal differentiation occurs when customers make subjective product selections duie to a lack of objective criteria for cetermining which products are the best or worst For instance, théte is no qualitative’ grading system for ice cream flavours. Whichever flavour you prefetchocolate, vanilla, or strawberry, is entitely up to personal preference. if ty of products on the market are priced similarly and share a large number of features or istics, the purchase decision comes down to subjective preference. ition on a mixed basis: When making more complex purchases, customers frequently cempldy a combination of vertical and horizontal differentiation. Assume you're in the market for a car. Consider two similar-priced four-door sedans from two distinct manufacturers. You're likely to make a choice based on mixed differentiation, Gas mileage and safety ranking are two objective metrics that can be used to vertically differentiate them. Horizontal differentiation, or the distinction between subjective preferences such as design aesthetic and brand impression, also plays a role in the decision.6 ‘Marketing Management (wanaPC-006) i ifferent val Or ora porta ea tan peaiely each ccnomen =e ‘on the combination of these factors. Differentiation of products’ advantages: Successful marketing requires effectivel your product's unique features and benefits. Here's how it can help your business £707 stronger. ‘Constructing brand loyalty Your business willbe remembered for its strong product diferentation. Custogtery Wl! assoc" clements of your brand with your product or service and all ofits benefits, sugIroS3/pu logo, voice and tone, and social media presence. ‘The more distinctive your product is and the more effectively it meets thegias #rd needs of your target audience, the more likely they will become repeat customers. Increasing price points Through product differentiation, you can increase your profits, sometimes Significantly: Typically. you can charge a premium for a differentiated product becausagegpeumers value durability appearance, and customer service. Additionally, they will pay a premium for packaging they enjoy or an experience that excites them, (However, for some businesses) your strategy may be to differentiate yourself by pricing lower than the competition) Limiting your target audience Additionally, product differentiation assists you in refining your target audience: The more research you conduct and the more distinct your prodaetor Service is, the bettes you will understand who is actually purchasing it. Then repeat the protess to further streamline your target audience Concentrating marketing efforts on a specific g@0up Of Consumersifrequently results in higher sales and a higher return on investment (ROI) than marketifig to the general public ly communicating, Q6. Identify the basic factors that prompéla-company to brand its products. Select any well advertised brand of your choice and define the personality of that brand. ‘Ans, Refer to Chapter-14, Q.No-1 Q7. Explain briefly the “product life, cycle concept'immarketing management and state why you feel itis useful to Understand this concept. ‘Ans. The term product life cycle refersto the length of time a product is introduced to consumers into the market until it's removedifrom the shelves, Thellife cycle of a product is broken into four stages— introduction, growth, maturity, and decline. This concept is used by management and by marketing, professionals as a factoninideciding when it.is appropriate to increase advertising, reduce prices, expand to new markets, or redesign packaging) The process of strategizing ways to continuously support and maintain prodiict is called produet life cycle management How Product Life| Cycles Work: Products, like people, have life cycles. A product begins with an idea, and within, theleonfines of modern business, it isn't likely to go further until it undergoes research and development (R&D) and is found to be feasible and potentially profitable. At that point, the productis produced, marketed, and rolled out ‘As mentioned above, there aré four generally accepted stages in the life cycle of a product— introduction) growth, maturity, and decline fuction: This phase generally includes a substantial investment in advertising and a atketing, campaign focused on making consumers aware of the product and its benefits. srowth: If the product is successful, it then moves to the growth stage. This is characterized Wy growing demand, an increase in production, and expansion in its availability © Maturity: This is the most profitable stage, while the costs of producing and marketing decline. © Decline: A product takes on increased competition as other companies emulate its success ‘sometimes with enhancements or lower prices. The product may lose market share and begin its declineykradhar.com ae successfully introduced into the market, demand increases, therefore increasing its When a produc IS Nwver products end up pushing older ones out of the market, effectively replacing Pop Ulay. aes eto carb their marketing efforts as a new product grows. That's because the cost ten ee ce :ket the product drop. When demand for the product wanes, it may be taken off to produc letely. me t's life cycle impacts the way in which it is marketed to consumers. A new duct needs to be explained, while a mature product needs to be differentiated from. its produ Special Considerations: Companies that have a good handle on all foil stages can increase profitability and maximize their returns, Those that aren't able fo may expetienee an increase in their ‘marketing and production costs, ultimately leading to the limited shelf life for their product(s) Back in 1965, Theodore Levitt, a marketing professor, wrote in the Hatvard Business Review that the innovator is the one with the most to lose because so many truly new products fail at the first phase of their life cycle—the introductory stage. The failure comes only, after,the investment of substantial money and time into research, development, and production. And that fact, he wrote, prevents many companies from even trying anything really new. Instead, he said, they waitlfor someone else to succeed and then clone the success. Examples of Product Life Cycles: Many brands that were American icons havéldwindled and died. Better management of product life cycles might haye saved some of them, 6F perhaps their time had just come. Some examples Oldsmobile began producing cars in 1897 but the brand was killed off in 2004. Its gas-guzzling muscle-car image lost its appeal, General Motorsdecided. Woolworth’s had a store in just about every smalltown and city in/America until it shuttered its stores in 1997, It was the era of Walmart and{other big-box stores. Border's bookstore chain closed down in 2011, It eouldin’t survive th@internet age. To cite an established and stil-thriving industry, television program distribution has related products in all stages of the product life cycle)As of 2019, flat-screen TVs are in the mature phase, Programming-on-demand is in.thé growth stage New product aes, wf development success yo eee “— process serps YG a rran evelopment ~ development strategies speed Market Orientation: “Market orientation is a company philosophy focused Tacit the needs and desires ofits customers through its product mix.” sSems reasonable to suggest that while a design team does not have control over company Philosophy it should be in a good position to influence this. Conducting user research and where on discovering and‘Management (MMPC-006) user experiences; w 2 appropriate market research ~ two fundamentals of developing, high qual ‘enable the discovery of customer/user needs and how to meet them. ‘Technology: The technology used to create and deliver the product must be sui While it is unlikely that the design team will have the final say in technol appropriation it is likely that they will be able to influence the development team technology. mee It is clear that, for example, multi-million dollar hardware and software requirements will make a Product inaccessible to the consumer market but may not be an instiheuRtable hurdle for government or corporate markets. Technology must be chosen with the end-users in mind. § Knowledge Management: In many organizations today; knowledge is tteated like gold dust and guarded by its owners as they would stolen treasure. Unfortunately, the creation of knowledge silos like these makes it impossible for knowledge to be effective. Market research data, for example, can be incredibly useful t0 aldesign tearitibut only if they can access that data and it’s not kept securely in the marketing apartment under lock and key. Likewise user research data can be highly valuable to the marketing team but ofiée againi= only if they can access it e Knowledge management structures will normally. fall Outside of thejdesign team’s remit. Hows there is nothing preventing the design team fromadvocating for open knowledge management structures or indeed persuading senior management to support'such structures New Product Development Strategies: Strate, despite the way it is often abused in management table for the market. budgets or ir choice of speak is simply; “a plan of action designed folachieve a long-term of overall aim.” Responsibility for new product development strategies is likélyito be shared between design, product ‘management and development. This means that the design team will have some input into the strategies chosen and will be ablesto influence theSe strategies with their user research to guide the strategy to fit the needs of their users. It is probably fair to say that product management will normally have the final say On a Strategic direction but designers have plenty of room to negotiate with product managers to ensure Better outcomes, New Product Development Speed: Speed to. market isa critical factor in suecess. If your new product development process takeS5 years but yout competitor's takes 2 years — it is likely that no matter how 00d your designs af they will hayébgen eclipsed by the time they get to market. Refining the design process to maximize speed whilst protecting the user experience is a delicate balancing act andiit.is fully withifithe designer's remit, However, the development process speed is much less likely to be within the design team’s control and their ability to influence that speed may be marginal atbest, > Ni p)Development Process: Having clear processes for design and development are tial While these may be tailored to fit specific circumstances ~ a methodology for working that lerstood and agreed to by all members of the product development team is highly likely better results than those created with no formal process. The design team will, normally, have some input into these processes and be able to negotiate modifications to processes when they fail to produce optimal results. There is little control for the design team over the way other teams execute these processes. Failure in execution, from other teams, is one ofthe few areas where iti reasonable to say that failure was completely outside of the design team’s control.3 Management Q7. Explain briefly the stages through which you would test ideas coming up for new products until the final stage of Launching the new Produt., ‘Ans. New product development is the process of bringing an original) product idea to market ‘Although it differs by industry, it can essentially be\broken down into five stages: ideation, research, planning, prototyping, sourcing, and costing! Here's how to develop your own original product idea and what to gonsider at each stage (Q) _ Ideation: Many aspiring entrepreneurs get stuck ommideation, often because they're waiting for a stroke of genius to, reveal, the perfect product they should sell. While building something fundamentally “new” can be créatively fulfilling, many of the best ideas are the result of iterating upon on an existing product. ‘The SCAMPER modehis & uieful toolifor quickly coming up with product ideas by asking ‘Questions about existing products. Each letter stands for a prompt © Substitute (e.g. furin faux fur) © Combine (@8, iphone case/and.abatlery pack) © Adapt (@g. abra with front clasps for nursing) ‘+ Modify(e-g. an electrictoothbriish with a sleeker design) Put {@ another use (eg, memory foam dog, beds) . inate (c.g. the midélléman to sell sunglasses and pass the savings on to consumers) . Rearrange (@fa Auifle bag so that it doesn’t wrinkle your suits) Byfasking these Questions, you can come up with novel ways to transform existing ideas or spt them for a newitarget audience or problem. re still looking for your “aha!” moment, we also put together a list of sources for 1 up with your own product ideas, from analyzing online marketplaces for ppiration to reinventing historical trends. Research: With your product idea in mind, you may feel inclined to leapfrog ahead to production, but that can become a misstep if you fail to validate your idea first. Product validation ensures you're creating a product people will pay for and that you won't waste time, money, and effort on an idea that wor't sell. There are several ways you ‘ean validate your product ideas, including, ‘+ Talking about your idea with family and friends ‘+ Sending out an online survey to get feedback * Starting a crowdfunding campaign14 @ ‘Marketing Management (MMPC-006) ‘+ Asking for feedback on forums like Reddit + Researching online demand using Google Trends + Launching a “coming soon” page to gauge interest via email opt-ins of pre-orders However you decide to go about validating your idea, itis important to get feedback from a substantial and unbiased audience as to whether they would buy your pts Be wary of overvaluing feedback from people who “definitely would buy” if you ave! reate your theoretical product —until money changes hands, you can’t count so! 2 customer. Validation research will also inevitably involve competitive analysis: Ifyour idea or niche has the potential to take off, there are likely competitors already operating in that space. Visiting your competitors’ website and signing up for their email list will allow you to understand how they attract customers and make sales. Asking your own potential customers what they like or dislike about your competitors will also be important in defining your own competitive advantage. ‘The information compiled from doing product validation and market research will allow you to gauge the demand for your product and also the Tevel of competition that exists before you start planning. Here is a free competitive analysis templaté\tohelp you out with this task Planning: Since product development can quickly become complicated, it's important to take the time to plan before you begin to build your prototype. When you eventually approach manufacturers oF start looking for materials, if you don’t have a concrete idea of what you want your pfoduct to,fook like and how it will function, it’s easy to get lost in the subsequent steps. The best place to begin planning is witha hand-drawn sketeh of what your product will look like. The sketch should be as detailed as possible, with labels explaining the various features and functions. You don't need a professional quality drawingsince you won't be submitting it toa ‘manufacturer at this stage. However, if you are not confident that you can produce a legible diagram that will make sense of your product, it is easy to find illustrators for hire on Dribble, UpWork, or Minty Try to use your diagram to create @ list of the different components or materials you will need in order to bring the product to life. The list does not need to be inclusive of all potential components, But it should allow you to begin planning what you will need in order to create the product. For example, a drawing of a purse design could be accompanied by this list: + Zippers (large’and small) + Silver clasps + (Leather'straps © Protection poucty +.) Embossed label »nerior wallet with the components, you should also begin to consider the retail price or category 1 product will fall into, Will the product be an everyday item ot for special occasions? @) fill it use premium materials or be environmentally friendly? These are all Questions to consider in the planning phase since they will help guide you through not only your product development process but also your brand positioning and marketing, strategy. ‘The packaging, labels, and overall quality of your materials should be considered as well before you continue to the sourcing and costing stages. These will have an effect on how ‘you market your product to your target customer, so it's important to take these aspects of ‘your product into consideration during the planning phase too. Prototyping: The goal of the prototyping phase during product development is to create a finished product to use asa sample for mass production,15 ‘hrichakradhor.com ©) irs unlikely you wil gel to your finished product in a single attempt— prototyping usually ecines experimenting with several versions of your product, slowly eliminating options ana making improvements unt you feel satisfied with a final sample, Prototyping also differs significantly depending on the type of product you are developing ‘The leat expensive and simplest cases are products you can prototype yourself, such as fond recipes and some cosmetic products. This do-it-yourself prototyping can/also extend tofashion, pottery, design and other verticals, if you are lucky enough to beltrained in these disciplines. However, more often than not, entrepreneurs will work with a‘thitd party to prototype their product, In the fashion and apparel industry, this usually involves working with a ocal seamstress (for clothing and accessories), cobbler (for,shoes) or pattem maker (for clothing), These services can usually be found online by/ Googling local services in the industry. Most large cities also have art, design or fashion schools where students are trained in these techniQues. Administrators from these university or college programs can usually grant you access to their internal job board where you can createa reQuest fer prototyping help. Sourcing: Once you have a product prototype you're satisfied with, itis time to start gathering the materials and securing the partners needed for production. This is also referred to as building your supply chain: the vendors, activities, and resources that are needed to create a product and get it into aenstomers’ hands. While this phase will mainly involve l6oking for manufactuting-related services, you may also factor in storage, shipping, and wareholsing into your choices at this stage In Shoe Dog, a memoir by Nike founder Phil Knight, the importance of diversifying your supply chain is a theme that ig €mphasized throughout the story. Finding multiple suppliers for the different materials you will need, as well as different potential manufacturers, will allow you to compare costs, Italso has an added benefit of creating a backup option if one of your suppliers or manufacturers doesn’t work out. Sourcing several options is an important part of safeguarding’your business for the long-term, When looking for suppliers, there are plenty of resources both online and in person. While it may seem old-fashioned, Many business owners choose to attend trade shows decticated to sourcing, Trade shows|like Magie in Las Vegas, provide the opportunity to see hundreds of vendors at once—t0 see, touch, and discuss materials and build a personal relationship with suppliers, which can be valuable when it comes time to negotiate prices During the sourcing phase, you! will inevitably come across the decision of whether to produce your product locally or overseas, It is a good idea to compare the two options, as they each havé their own/advantages and disadvantages. ‘Thelmost commonly used Sourcing, platform for overseas production is Alibaba, Alibaba is marketplace for Chinése suppliers and factories, where you can browse listings for finished goods, or raw materials A popular way of using Alibaba to find a manufacturer is to look listings with similar products to your own, and then contact the factory to see if they can ice your specific design ting: After research, planning, prototyping, and sourcing is done, you should have a all of the information gathered thus far, and adding up what your cost of goods sold 2 learer picture of what it will cost to produce your product. Costing is the process of taking, (COGS) will be, so that you can determine a retail price and gross margin. Begin by creating a spreadsheet with each additional cost broken out as a separate line item. This should include all of your raw materials, factory set up costs, manufacturing costs, and shipping costs. It is important to factor in shipping, import fees, and any duties, you will need to pay in order to get your final product into the customers hands, as these fees can have a significant impact on your COGS depending on where you are producing, the product.Shrichakrodhar.com v7 Chapter-1 Marketing: An Overview |. Describe the concept of Marketing? a es Marketing is the process of identifying consumer needs, converting them, fat@lproducts and services, and then distributing the product or service to the final consumer segment, with an ‘emphasis on profitability and customer satisfaction, as well as maximising the Organization's resource allocation. Marketing is the process of conceptualising, pricing, promoting, and distributing ideas, goods, and services in order to generate exchanges that satisfy both individual and organisational objectives. According to Philip Kotler, marketing is a social and managerial process by which individuals and ‘groups obtain what they require and desire through the creation and exchange of products and value. ‘The author viewed marketing as a social process in which human interaction is critical. Persuasion for the sale of products or services begins during this interaction. Thus, marketing is solely focused on the customer's purchase decision, but it isfaeomplished through a series of marketing initiatives at various stages. Marketing begins before \the goods are ‘manufactured and continues after they are sold. As a result, marketing is presumed to be an ongoing process. While the activities associated with identifying)the customer's needswants, and demands, designing a product to meet those needs, naming’ the produict, and converting it to a brand through ‘communication with the customer. ‘The American Marketing Association defines marketing as follows: “Marketing is the performance of business activities that directs the flow of goods and services from producer to consumer or user’ Marketing is defined as the process or businé8sof promoting and selling products or services, which may include market research and advertising, Totay, marketing i8.a necessary component of every business and organization's growth sttategyd Numerous businesses unknowingly use marketing techniQues to accomplish their objectivesias they work to promote themselves and increase sales of their product or service. Nowadays/marketing is a critical component of business People frequently have a vagué idea of what marketing iS and, when pressed, define it as selling or advertising, While these responses afe not incorreet they represent only a portion of marketing There are numerous other facet 1) marketing: Including product distribution, promotion, design and creation of materials such’ aB.landing pages and social media content, customer experience improvement, market research, and segmentation of markets, Marketing is a broad term, that encompasses all of the sirategies that assist a business, brand, or individual in achieving theif goals, e BP neccrve zi S Bop se Q2. What are the basics concept of Marketing? ‘Ans, Marketers: A marketer's objective is to elicit a favourable response from current and prospective Customers, The response does not have to be in the form of a purchase of a product or service offered by amarketerit could be as simple as paying attention to the features of a product or bringing out an= ‘Marketing Management (MMPC-006) i e andemic, or anticipated change in behaviour (for example, wearing a mask during the current P' wearing a helmet while riding a two-wheeler). . ee A firm's oe are targeted at a well-defined segment of individuals or “eau that we refer to as customers. However, there are numerous synonymous terms such as users, ee . consumers, clients, purchaser, shopper, and patron that are used imterchang2i pina ting, literature depending on the nature of the product and service offering, The terms USER His a passive noun that refers to "a person who makes use of something." A customer is somearieywho makes a purchase. Certain businesses have users who are also customers; for instance, Wwe consume electricity And pay for it. While some businesses have users but not customers, for example, We use WhatsApp but do not pay for it through a subscription or fee. Certain businesses have two distinct user and ustomer groups, For instance, media’ companies such as television,igee channels serve both the audience (viewers) and advertisers (customers or clients). Let us now examine the distinction between a consumer and a customer, customer is an individual who purchases a product, Someone who consumes a product ot,serviee is referred to as a consumer, ‘Asa customer, you purchase vegetables for your family; until they arécooked and consumed by you and your family, you remain a customer; once they are cooked/and consumedyby you and your family, you are all consumers, individually or collectively, Clignts are individuals or businesses that utilise the services of professional marketers such as attorneys and chartered accountants. Likewise, the other terms mentioned previously are used in avariety of contexts and situations. Customer Value: When we purchase a product don't we’ consider the benefits that the product provides? Yes, we do imagine that when we putehase an iPod, we do'so not ‘only for the music output (benefit), but also for the cool fashion statementassociated with it, Thus, itis not just one benefit, but rather a collection of benefits associated with the product, suchas product quality, after-sales services, warranty, repair costs, free home delivery, and user friendliness, Customers are rational enough to weigh the benefits and drawbacks of acquiring @ product in relation to the price they pay for those benefits. ‘Customer value is the difference between the benefits a customer teceives from owning a product and the cost of acquisition. The cost of a product is notisolely determined by its price, but also by the amount of time and energy spent’ shopping. Customer value can be expressed mathematically as follows: ‘Customer Value is calculated as thesum of all customer benefits minus all customer costs. Thus, the marketer's role is to increase the perceived value of the product through benefits, such that the customer prefers it oyer the Competitor's product. Customer Satisfaction: Customer Satisfaction is measured as the difference between the actual performance of a product as perceived: by a customer and the customer's expectation. Thus, it is the match between the/proditet's customer expectations and its actual performance. ‘Customer satisfaction|Varies by individual; it is an experience that is unique to each individual. A true evaluation of a product or seryicé Gan only be made through direct experience. As a result, customer satisfaction is a phenomenon that occurs post-purchase. Satisfaction can only be quantified by comparing. prés/and post-purchaselexpectations and experiences. Customer satisfaction is also a barometer of an organization's success. ation used to determine a customer's level of satisfaction is satisfaction is defined as the difference between an experience and an expectation. tis a widely held belief that people view the market narrowly as a physical location where purchased or sold. There is a distinction between an economist's and a marketer's Perspective. Economists define a market as a collection of buyers and sellers who compete for control of a particular product or product category (for instance, a paddy market or a cloth market). While ‘marketers view markets as individuals with needs to be met, money to spend, and a willingness to do so, In other words, markets are made up of people who share the three characteristics listed above.Q3. Describe the Concept of Market? ‘Ans. The term ‘Market’ derives from the Latin word ‘MARCUTUS, which refers.to a location where buyers and sellers conduct business. Traditionally, buyer anseller congregated at’a location known as a haats’ ormelas’. However, as time passes, buyers and sellers ho longer needto meet in person to transact; they can do so virtually via e-commerce platforins. Consumersmarkets (fast-moving consumer goods, consumer durables, and softy,goods) industrial ymarkets (finished goods, components, and services), intermediate markets (Wholesale andjretail markets), geographical markets (local, national, global/international, rufal,. and urban, markets), and non-profit and governmental markets (companies selling 10 noreprofit organisations with limited purchasing, power). Markets are classified broadly into four types: COsumer markets, business markets, global markets, and nonprofit markets. Consumer markets are made up of(@ustomers for large-scale, goods and services such as food, toothpaste, detergents, clothing, furniture, smart phones, banking, and insurance. Business markets are made up/6f customers who/purchase goods and services to resell or to use in the production of other items or services for sale Global markets are concerned with products afd Servie®s that are in demand on a global scale. Nike, Coca-Cola, Apple, and Colgate,to name a few, have a sizable presence in a wide variety of countries. Non-profit markets are comprised of organisations’such as religious organisations, public libraries, ‘educational institutiongpand government agéhdies that require specialised products and services. ‘The policy of the Union)'government to procure its requirements via the GeM (Government ‘eMarketplace) portal provides insight intothe government market. ee Q4. What sr snetn ‘Orientatiom towards its Customer? ‘Ans. Busin evolvedl significantly over time, and markets have shifted in lockstep with businesses ide. Additionally, firms have altered their approach to the market, evolving thro tages of development. The shift in people's attitudes and perceptions, their rapidly ‘and preferences, as well as their way of life and work. The marketing function was jonse to this change. purpose of a marketing philosophy is to identify and satisfy customer needs. As such, a philosophy is a foundational concept that guides a business's efforts to satisfy customers iplish organisational goals. Each of these philosophies takes into account the interests of businesses, customers, and society as a whole. Businesses organise their marketing efforts around five marketing philosophies: (1) Production Conceptualization @) Product Conceptualization (3) Selling Conceptualization_ Marketing Management (MIMPC-006) (@) Marketing Conceptualization (6) A Holistic Marketing Approach on ‘The Concept of Production: The production concept places a premium. accessibility. Affordability is achieved by lowering the cost of production through mass a and consumption and by lowering the prices. Availablity is achieved Ugg TT ig distribution of the product. According to this philosophy, any quantity of goods Be ‘ they are available and affordable to customers. ~ “The production concept is nearly extinct now, with businesses increasingly focused" Hhscisiones as the underlying ideology is that customers will choose products andekyices that are widely available and affordable. Consider for a moment the acute shortage of hospital beds in many coygyresttring the height of the Coronavirus epidemic, Though the production concept was once cafisider@el an ancient and extinct philosophy, we still come across some firms that adhere to it. Hospitals struggled to meet the growing ‘demand for healtheare services and facilities from COVID patients, ashe situation was characterised by an excess of demand for healthcare facilities and services. ‘Another instance is when demand for electricity, petrol, dieselj/and LPG gaslexceeds supply ina number of developing countries, resulting in shortages. Asa result, marketers strive to increase their manufacturing capadty and distribution efficiency in order {6 meet the markets iunatistied demand. ‘Additionally, they strive for mass production, which’Ghtails reducing production costs in order to make products or services more affordable to customers. Asia result, firms strive to maximise output reduce unit costs, and sell at a profit. However, thisis notthe mostlangeterm business philosophy for an enterprise. The Concept of the Product: Throughout the production concept, supply exceeded demand. As a result, low cost and availability could not enstire the firms growth and survival. The firm needed to innovate products and provide customers with more options, which resulted in the creation of a product concept. This concept is predicated on the premise that consumers will prefer products that are higher in terms of quality, performance, and innovation, However, firms that take this approach are limited initheir vision and inward-looking, as they fail to understand their business in°terms of the fundamental customer need. In other words, such ‘businesses define themselves through the lens of. their products. In 1960, Theodore Levitt coined the term “marketing myopia’ ist a seminal article published in Harvard BusinessReview. Marketing myopiaiis a short-sighted and inward-looking approach that is more concerned with sales than with the needs of the consumér. These businesses frequently overestimate the features of their products, failing to recognise or understand the néeds of their customers in the process Successful businessesiprioritise customer Teds over their own products and features. Because the companies’ primary focus is on producing high-quality products, they miss out on customers who are looking for low-cost alternatives or are'swayed by the product's availability and usability ‘Selling Concepts The Selling Concept: As the environment changes and competition increases, the firm's strategy of offering innovative products and making them available to customers no longer ‘works. There was-something mote required than just a high-quality product to ensure the companies survi growth. Numerous sellers entered the market and began manufacturing high-quality P mething additional was necessary to persuade the customers at this point. Business evolved; previously, it was believed that customers would not purchase or would not in sufficient quantity unless and until they were convinced and influenced to do so. As a place a premium on selling and promoting their offering in order to achieve marketing success. This strategy is most frequently used for non-desired goods such as insurance, dictionaries, fire extinguishers, and cemetery plots. Unsought goods are those that customers are unaware of or do rot consider purchasing. The selling concept perpetuates the myth that marketing is exclusively ‘about selling. Businesses may not enjoy the highest levels of customer patronage simply by aggressively marketing a product or offering steep price discounts ea Stwichakrodhar com = own tired of the salesman’ excessive influence and interference during the Cpe ke ‘which resulted! in unnecessary purchases that did not meet the customer's ae ore according 0 the marketing concept, a firm's success is cletermined by how well it needs and dss or recs and wants and how sucestlly it converts these needs ino cnc creas produc a Concepe Marketing begins por othe completion ofthe produc, seri, olution and aaaraet ee the sale has been’ made, The business makes an honest effgt tlgetain existing confines tease attracting new ones: Customer satisfaction isthe commerstom@of marketing as it aaaarr pat customers are satistied with their purchase of a product or seryige§Gustomer satisfaction aanares an tant ofthe marketing concept, and all decision-making, is predicated on this premise one een all four components of the marketing, mix are intelligently developed, formulated, and tlanuied withthe customer at their core. For instance, ifa customer réquirda pen, pencil, and eraser all in one, Linc pens have met that need. If customers desire tiple door reftigerators, LG, Godre) and Hitachi effered them to meet their needs and desires. These businesses invest heavily in research to better understand and meet the needs of their customers Ina nutshell, selling converts goods into cash, whereas marketiniassistsin'@@ving and satisfying customer needs. The Concept of Holistic Marketing: At the tum of the twenty-first century, marketers face a variety of new marketing realities. The rapid pace of techitGilogical advancement, the global economy's impact, growing economic inequalities, climate Change, environmental degradation, public unrest, and crony capitalism have all become new wofldirealitiés. The outbreak of COVID-19 at the start of 2020 compelled organisations to rethink their approach to the market in an effort to realign their strategie thinking, Against this backdrop, Philip Kotler et alholistis marketing concept gained significance. The holistic marketing concept is founded on the creatiory design, and implementation of marketing programmes, processes, and activities that take a comprehensive and integrated approach. provides an overview of holistic marketing's four major componehts: relationship marketing, integrated marketing, internal marketing, and performance marketing, Relationship marketing’s objectiveis fo develop mutually beneficial long-term relationships with the company's primary stakeholders, induding customers, employees, marketing partners (such as suppliers, distributors, and agencies), and financialjeommunity members (such as shareholders and investors). All of these enduring relationships Would contribute to the development of a unique asset for the company known as @'marketing network’ comprised of the aforementioned key stakeholders. It operates on a straightforward principle! establish an effective marketing network comprised of long-term relationships with key constituents, and profits will follow. For instance, the Swedish furniture manufactnrer/Tkea has @ global, customer base. When Ikea changed the font in their ‘ubiquitous catalogus)fans took to the Internet to express their dissatisfaction. Rather than alienate ‘customers over attivial matterjfkealrestored the font in the subsequent catalogue Integrated marketing aims to combine and match marketing activities in order to maximise their individu lective effectivetiess. Hewlett-Packard (hyp) CEO David Packard once stated, Mi 10 important to be left to marketing people.” Organi: -ve marketing success only when all departments collaborate to accomplish customer tions, whether for-profit or not- R&D developing the appropriate product, finance providing the appropriate funding, 1g the appropriate materials, operations manufacturing the appropriate product, and accounting measuring profitability in the appropriate manner. Peter Drucker made a profound observation many years ago: Because the purpose of business is to create customers, the business enterprise has two —and only two ~ fundamental functions: marketing and innovation. Marketing and innovation generate results; everything else isa cost. Marketing is the business's distinguishing, unique function,2 marketing Management (MMPC-006) led by an Uber, for example, is redefining urban mobility globally. Uber's entry into India was Pies eee integrated marketing campaign centred on the concept of Apnapan (means afi ad mobility. Uber's objective was to increase brand relevance on a daily basis and to reframe persona 00 Tf 1 communication strategy was co-created with the help of incredible stories about riders partners’ heartwarming experiences across the country 5 Additionally, integrated, erin entails the development of an integrated chi ny Bach channel option should be evaluated for its effect on sales and brand equity. aly F Internal marketing: Marketing organisations employ an internal marketing Strategy In order to prioritise their employees. ‘The better a business treats its employees, the better # will perform in terms of providing superior customer service. In this sense, employees are treated as a company’s ‘internal customers.’ External marketing directs the company’s strategy:toward the customer in the marketplace; internal marketing directs the company's strategy toward the internal customer (that is, its employees). Thus, as a component of holistic marketing, internal marketing focuses on the task of recruiting, training, and motivating capable employees who are committed to providing superior customer service. Performance Marketing: Businesses must understand the broader role their marketing, activities or strategy plays in generating financial and non-financial retums tor the business and society at large Along with revenue, market share, customer satisfaction, and quality leadership petformance metrics, a company’s marketing performance is frequently evaluated in terms of legal, ethical, social, and environmental dimensions. Relsvonsiiph Marketing) Holistic Marketing Components Ogee Qs. seg of Marketing Mix? ‘Ans, Mc assified a firm's various marketing activities into four components in the 1960s, which jown as the Four'Ps of marketing-mix, namely Product, Pricing, Placement, and Pro’ X first and most critical component of the marketing mix is the product. The term refers to the company’s goods or services. Aiter identifying the needs, itis necessary to plan ict and then continuously analyse whether the product still meets the needs for which it was originally designed, and if not, to determine the necessary changes. This will be discussed in greater detail when we discuss product selection. Coordination of product decisions entails making decisions about product mixes, product lines, branding, and packaging. There are three types of products: non durable, durable, and services. Businesses frequently sell multiple brands. Brands can be differentiated based on the form, features, performance, style, and design of their products, as well as on service dimensions such as ease of ordering, delivery, and after-sale service. The product life cycle2B See enables marketers 10 space forecast, and respond to the challenges presented by the Re Ck sntegral part of marketing, Pricing decisions are intricate and difficult to make. Pring Pe eke decisions, they consider a variety of factors: the company, the When mane competition and the marketing environment. Pricing policy shouldebe aligned with ear arketing strategy, customer segmentation, and brand positioning, ne should te calahlished in a systematic manner by businesses. Firms should adjust thei jn response to te ition, and they must do so while carefully managing customer peegeptions. They must forecast competitoriniinted price changes and prepare appropriate response Placing: Placing entails determining the optimal design and combination of marketing channels, as ‘well as managing these integrated channels. The majority of businesses d@ not engage in direct marketing, Between businesses and their final customers, intermediaries or middlemen such as wholesalers and retailers act as intermediaries or middlemen, Intermediaries perform a variety of critical functions, induding, information dissemination, promotion, negotiation, ordering, financing, risk management, physical possession, payment, and title. When choosing the channels to use, marketers conduct an analysis of @tistomer needs, define channel objectives, and identify and evaluate major alternatives)Since the advent of E-commerce, its importance has grown, and many businesses have implemented “brick-and-clickehannel systems in ‘addition to their brick-and-mortar presence in ordenjt@leverage the (strengths of both online and offline marketing, a Promotion: Promotion is the process of devéldping abd implementing an integrated marketing communication model for a business in ordersto communicate with both current and prospective stakeholders. The marketers combine non-personal mass commiinications (advertising, sales promotion, events and experiences, and public relations, and publicity) with personal communications (direct and interactive marketing, word-of-mouth marketing, and personal selling). Today, interactive marketing is accelerating it growth through the use of the company's Websites, search advertisements, and e-mails, THE MARKETING MIX Cota Sei toute) 6. \e framework in relations to 4Ps? ‘Sheth and Rajendra Sisodia created the 4As Framework, which is connected to the four design the product, which has the greatest impact on Acceptability, the price, w ‘the greatest impact on Affordability, the location, which has the greatest impact on Ace Promotion, which has the greatest impact on Awareness. Acceptability refers to the degree to which a company’s total product offering meets or exceeds ae ‘expectations. Acceptability is the Framework's primary component, Customer acceptance increased by enhancing the functional aspects of the product design, brand image, and ich has ibility, andu Marketing Management (MMPC-006) to pay the Affordability refers to the ability and willingness of customers in the target market f0 Pay product's price, It consists of two components: economic (capacity to pay) and psychological (willingness to i ee ee ei with affordability, determines the value proposition of a product, Accessibility refers to the ease with which customers can obtain a product. It is divided pete pe climensions: accessibility and convenience. Successful marketers find novel ways:te deliver both, as Bata, a shoe company, does online and in-store. : : Awareness: The degree to which customers are informed about the product's characteristics, persuaded to try it, and reminded to repurchase is called awareness, It is divided into two components: brand awareness and product knowledge. Q7. Explain the scope and misconceptions of Marketing? Ans. Scope: Agricultural commodities, fish, eggs, newspapers, chocolates, laptops, televisions, and furniture are all examples of physical goods. ‘The services sector is the world’s largest, accounting for over 68% of total global wealth. This sector accounts for more than 53% of India's gross value added. Tourism, travel, hospitality, healthcare, education, banking, and insurance are all examples of services, Marketers promote time-sensitive events ranging from local (eg, Hombill Festival in Nagaland and Kerala Boat Festival) to national (e.g., 150 Years of Celebrating the Mahatma) to international (e.g, 150 Years of Celebrating the Mahatma) (e.g, Indid International Trade Fair, and the Tokyo Olympics 2021), A business can market personalised or customised experiences such as the Ramoji Film City Star Experience, climbing Mount Everest, or spending aweekend with crickét legends, Personalisation has the potential to be a huge boon to retailers and éonsumers alike. Individuals: Numerous businesses promote theit brands through)personal marketing. Renowned individuals market both themselves and various products or services. Cristiano Ronaldo, the world famous football player, endorses Clear Shampoo and Nike athletic shoes; Aishwarya Rai Bachchan endorses L'Oreal Shampoo; and Salman Khan servesaa brand ambassador for Pepsi, to name a few Self-branding has become a burgeoning field. Countries, regions, states, and tities all compete for investment, tourists, and businesses Governments, real estate agents, and investors are just. few of the place marketers. Singapore's New Asia, India's Incredible India, and Mumbai's City of Dreams are just a few examples of how logos, slogans, and other forms of Branding are used, The term "properties" fefers t0 either ‘teal estate or financial assets that are purchased and sold. Examples include Godrej Properties and Oberoi Realty in the real estate sector, as well as ICICI Direct and HDFC Securities in the depositary services sector. Organizationssuch as) museums (eg the National Museum in New Delhi and the Salar Jung Museum in Hyderabad), non-profit organisations (e.g, HelpAge India and Smile Foundation), Performing arts organisations (e.g, the Shankar Mahadevan Academy's Inspire India Program and the Sangeet Natak Akademi’s Musie Awards), and corporations (e.g., Tata Motors! corpor promise "Connecting Aspirations’) all strive to Seer an integral part of everyone's life as we rely on it for information ate brand sission statement states that the company's mission is to “organise the world's information it universally accessible and useful.” Numerous such marketers exist, including publishers, eclugational institutions, and newspapers, all of which sell ‘information’ as a product, Social marketers utilise the concept of idea marketing. This is also referred to as social media marketing, It sa strategy for developing activities that aim to alter or maintain people's behavious for the benefit of both individuals and society as a whole, Swachh Bharat Abhiyan, or the Clean India mission, is a government-wide initiative launched in 2014 by the Government of India to ‘open defecation and improve solid waste management. Govemments and throughout the world attempted to educate the public about the importance o radicate health organisations f wearing face masks25 Freee eerie pM Ove hands to combat the shysical distance, and frequently washing one's hands to combat the appropriately, maintaining ius. ad ‘istakes About Marketing: There are numerous marketing fallacies or Comm gandings, You must fist gain clarity onthe subject before proceeding ‘he public perception is that marketing equates to selling. Interestingly, selling ismot the primary goal or objective of marketing! Many customers: helieve that advertising, as the most visible component of marketing, is a waste of erry that drives up the cost of production. Indeed, advertising contributes tothe growth of mass consumption, which ultimately results the product's price being reduced, Thor ig a widespread misconception that marketing cannot occur without the involvement of yy is that we now have a plethora of direct marketing companies located middlemen. The realit throughout the world. In India, for example, there is Amway, AVON Beality Products, and Eureka Forbes, While there is a perception that marketing requires expenditure, the reality is that marketing enables the firm to generate revenue, whereas other departments such 9s finance, production, and human resources management are cost factors. ‘Additionally, many people believe that marketing is only relevant to for-profit businesses that sell products and services such as bath soaps, washing machines, and insurance poliies: Nowadays, not- for-profit organisations (for example, the World Health|Organization and/GRY ~ Child Rights and. You) are just as effective at marketing.26 ‘Marketing Management (MMIPC-006). Chapter-2 ; Marketing Environment Analysis Q1, Explain the concept of Marketing Environment. Describe the Changing Roleand Impact of Marketing Environment? am Ans, Human beings and all other living creatures exist and thrive in specific apo oa = Suitable and conducive to their existence, They also adjust and accommodate tothe prevailing climate and weather conditions in a given place or location from time to time. Ae Businesses are not immune to this. Every business should identify and consider the most favourable environment, both external and internal, that will enable it to operate profitably and with the customer at the centre for growth, development, and sustainability. i Marketing occurs outside of the company’s four walls. Thus, it becomes even more critical to conduct an in-depth analysis of the marketing environment in which a business operates. Which is tasked with the responsibility of identifying changes, trends, opportunities, and threats, as applicable? Additionally, this is referred to as environmental scanning. In other words, marketing environment scanning enables the identification of a company’s strengths and weaknesses, as well as the opportunities and threats posed by the external environment, The strengths and weaknesses of a business are indicative of its internal capabilities and constraints ‘You may believe that such analysis will simply inform you of potential problems; however, it can accomplish much more. As a marketer, you cannot control any of the major forces, but environmental scanning enables your business to review and revisits strategies as well as to respond and adjust its decisions in response to unmet needs and changing trends. By omitting environmental analysis, ‘marketing organisations pass up numerous opportunities, ‘Asa marketer, you must keep an eye on six macroeconomic factorsjforces that are not directly related to the firm. They are demographic, economic, sociocultural, natural, technological, and legal in nature. We will walk you through these critical factors/forees that contribute significantly to the growth of a business in general andia marketing effort in partteular. Each of these variables has an effect on the grand scheme of things. ‘The marketing environment is made up of both the micto and macro environments According to Philip Kotler, "a business's marketing envifonment is comprised of the internal factors and forces that influence the company's ability to develop and maintain successful transactions and relationships with its target customers” According to Pride é&Kerrell,"the marketing enyisonment is made up of external for: an organization's acquisition of inputs and generation of outputs directly or indirectly The marketing environment’s changing role and impact “We are watching the dinosaurs perish, but we have no idea what will take their place,” Lester ‘Thurow, a former MIT@conomist, observed, Let us attempt f0 comprehend the preceding statement using the following example. Until the 1990s, Indian telecommunications ‘Were “the domain of the Union government's Department of Telecommunicatibns, which provided basic telephony. With the liberalisation of the economy, the telecim sectobunderwent dramatic changes. With the advent of Liberalisation, Privatisation, and lisation (LPG), new players in the private sector of the telecom space entered the market, pnew brands of telecom products and services. tthe establishment of the Telecom Regulatory Authority of India (TRAI) as the country’ regulifor, the Bharat Sanchar Nigam Limited (BSNL) was transformed into a fully-fledged company capable of competing head-on. As a result, the Indian customer now has a broader range of brand options; mobile phones have become affordable to the average person, telecom se been slashed; and, inthe process the landline phone has become a dinosaur in the Indian corporate world! This demonstrates the government-owned BSNL's diminishing role in the lelecom indecrey, having invested heavily in andiine phone technology and thus being unable to respond to the deg, changes occurring in the external environment, 's that influence vice prices havea7 ykradhar.com sae cal for marketing organisations to develop the ability to forecast, comprehend ‘As a result, it is criti inva dynamic environment through appropriate marketing decisions regarding and adapt 10 ee and promotion or marketing communications mix product, was of the twenty-first century, it was clear that organisations were confronted By the secoMedented marketing challenges as a result of global competitions technological with unprecede els, and escalating customer aspirations for a better quality @f life, ever- i Jatile marke ‘ eget ‘imate change, and a sudden health calamity triggered by the global outbreak of 19, re the challenges mentioned previously, let us consider COVID-19, wih had a global impact dlespite being invisible to the naked eye. Corona virus had an effect on out lives regardless of caste, creed, religion, or race, Thus, one aspect of its existence is to impact and destabilise normal human life ‘with fear and agony. The flip side of the virus pandemic is an incréase in digital consumption by customers across all industries, from streaming entertainment to online purchases. As a result, the scope of digital marketing has expanded exponentially in order to, reach both new and existing customers. This has resulted in the increased use of digital marketing campaigns/promotions to increase and accelerate sales. According to the CRITEO report on COVID-19's Impact onIndlia, 40% of marketers attributed the pandemic to their business processes’ accelerated digital transformation. Despite revenue losses, one in every two marketers increased their digital marketing spending during the pandemic. 55% of marketers confirmed that they altered their markéting strategies significantly during the pandemic ‘Additionally, they planned to increase their spending of social mediay content marketing, paid video, and advertising on retail websites/apps. That is, the pandemic compelled numerous marketing organisations to rethink their approach to marketing, This unit will place a premium on comprehending and analysing the marketing environment in which the firm operates from an Indian perspective. Environmental analysis should begin with the establishment of a Marketing Information System (MIS) department/arm within the organisation, MIS's role is to ascertain managers’ information needs, develop necessary information, andhdistribute it ina timely manner. The MIS's outputs or reports can be classified as périodi@ reports, triggered) reports, demand reports, and specialised databases, among others. In recent years, data warehousing and data mining have gained popularity as concepts for processing, stOting, uncovering) and ‘utilising data, Quite frequently, businesses require information in order to solve a specific marketing problem, Marketing research reports and data provide the necessary, information. Marketing research not only generates but also utilises marketing data. The importafice of marketingytesearch and its relationship to environmental analysis becomes clear at this pointyand is discussed further at the unit's conclusion. Q2, What do you understand by the macro forces of marketing environment and their significance? ‘Ans. Macro BRvigonment refers to the external environment factors that have a significant impact on the success, strategies, and decision-making of businesses. These are unquantifiable factors for cans organisations. The macroenyironment refers to a broader and broader set of economic conditio » E)macroeconomic factors that have a positive or negative impact on the business Marketers must consider macroeconomic factors when developing an effective rategy, Numerous strategic analysis tools (PEST, SWOT, and Porter's Five Forces) are to evaluate these macroenvironmental factors. The PESTLE Analysis technique is widely to identify opportunities and threats. Marketers can capi : an capitalise on opportunities and mitigate threats once they understand the outcome. Political Aspects: Political factors in the external environment include government actions, rules, and ES A change in the political climate can be a highly sensitive issue for a business. ncontrollable political factors affecting business include political stability, current and pending, ene" ‘The ‘only way forward is for environmental analysis to be conducted. It is beneficial to be Potential threats and opportunities and to take appropriate precautions,