JULY/AUGUST 2022 (Checked)

MARKETING MANAGEMENT

1. (a) Explain the 3V concepts in marketing. (3m)

VALUE FOR THE CUSTOMER - 1

This V asnwers the cuestion: WHO are we trying to have as clients? In this point, we would include
all what we know about our customers: consumer behaivor, marketing research, and other
information that could be helpfull to know about them, and what is more, to know what are they
looking for, what is their need?

VALUE PROPOSITION - 2

This V would have to answer the question WHAT are we going to offer to them? This V talks about
the product, and is the point where Marketing gets involved with diferent departments as
Investigation and Research, Design, and Production.Eigther if the need of a customer would be
assuaged by a good or a service.

VALUE NETWORK - 3

The last V answers the question: HOW are we going to deliver the proposition to the customer? This
is the point where all the company is involved.Logistics, Marketing, Sales, but also Finance, Human
Resources, and Purchases.

This last V is why the Professor Kumar talks in his lecture about a "Crossfunction Orchest", because
all the departments should be at their best and aim to the main common goal: to bring the proposition
to the customer.

(b) “A mother should try to understand the factors that influence consumer behaviour”.
Discuss. (7m)

Consumer behaviour refers to the selection, acquisition and consumption of goods and services to
meet their needs. There are different processes involved in consumer behaviour. Initially, the
consumer tries to find what products you would like to consume, and then select only those products
that promise greater utility. After selecting the products, the consumer makes an estimate of available
funds that can happen. Finally, the consumer looks at the current prices of commodities and makes
the decision about which products to consume. Meanwhile, there are several factors that influence
consumer purchases, such as social, cultural, personal and psychological. The explanation of these
factors is as follows.

 CULTURAL FACTORS
Consumer behaviour is deeply influenced by cultural factors, such as buyer’s culture, subculture and
social class.
• Culture - Essentially, culture is the share of each company and is the major cause of the person who
wants and behaviour. The influence of culture on the purchasing behaviour varies from country to
country; therefore sellers have to be very careful in the analysis of the culture of different groups,
regions or even countries.
Cultural factors comprise of set of values and ideologies of a particular community or group of
individuals. It is the culture of an individual which decides the way he/she behaves.
In simpler words, culture is nothing but values of an individual. What an individual learns from his
parents and relatives as a child becomes his culture
• Subculture - Each culture has different subcultures, such as religions, nationalities, geographical
regions, racial, etc. marketing groups may use these groups, segmenting the market in several small
portions. For example, marketers can design products according to the needs of a specific
geographical group.
• Social Class - Every society has some kind of social class is important for marketing because the
buying behaviour of people in a particular social class is similar. Thus, marketing activities could be
adapted to different social classes. Here we should note that social class is not only determined by
income, but there are several other factors such as wealth, education, occupation etc.

 SOCIAL FACTORS
Social factors also influence the purchasing behaviour of consumers. Human beings are social
animals. We need people around to talk to and discuss various issues to reach to better solutions and
ideas. We all live in a society and it is really important for individuals to adhere to the laws and
regulations of society.
Social Factors influencing consumer buying decision can be classified as under:
• Reference Groups
• Immediate Family Members
• Relatives
• Role in the Society
• Status in the society

• Reference groups - Reference groups have the potential for the formation of an attitude or
behaviour of the individual. The impact of reference groups vary across products and brands. For
example, if the product is visible as clothing, shoes, car etc., the influence of reference groups will be
high. Reference groups also include opinion leader (a person who influences others by his special
skill, knowledge or other characteristics).
• Family - Buyer behaviour is strongly influenced by a family member. So vendors are trying to find
the roles and influence of the husband, wife and children. If the decision to purchase a particular
product is influenced by the wife of then sellers will try to target women in their ad. Here we should
note that the purchase of roles change with changing lifestyles of consumers.
• Roles and Status - An individual from an upper middle class would spend on luxurious items
whereas an individual from middle to lower income group would buy items required for his/her
survival.
Each person has different roles and status in society in terms of groups, clubs, family, etc.
organization to which it belongs. For example, a woman working in an organization as manager of
finance. Now she is playing two roles, one of the chief financial officer and the mother. Therefore,
purchasing decisions will be influenced by their role and status.
Role in the Society - Each individual plays a dual role in the society depending on the group he
belongs to. An individual working as Chief Executive Officer with a reputed firm is also someone’s
husband and father at home. The buying tendency of individuals depends on the role he plays in the
society.
 PERSONAL FACTORS
Personal factors may also affect consumer behaviour. Some of the important factors that influence
personal buying behaviour are: lifestyle, economic status, occupation, age, personality and self-
esteem.
• Age - Age and life cycle have a potential impact on the purchasing behaviour of consumers. It is
obvious that consumers change the purchase of goods and services over time.
Age and human lifecycle also influence the buying behavior of consumers.
A bachelor would prefer spending lavishly on items like beer, bikes, music, clothes, parties, and clubs
and so on. A young single would hardly be interested in buying a house, property, insurance policies,
gold etc. An individual who has a family, on the other hand would be more interested in buying
something which would benefit his family and make their future secure.
• Occupation - The occupation of a person has a significant impact on their buying behaviour. For
example, a marketing manager of an organization is trying to buy business suits, while a low level
worker in the same organization buy-resistant clothing works.
The occupation of an individual plays a significant role in influencing his/her buying decision. An
individual’s nature of job has a direct influence on the products and brands he picks for
himself/herself.
• Economic situation - Economic situation of the consumer has a great influence on their buying
behaviour. If income and savings a customer is high, then going to buy more expensive products.
Moreover, a person with low income and savings buy cheap products.
Individuals with high income would buy expensive and premium products as compared to
individuals from middle and lower income group who would spend mostly on necessary items.
• Lifestyle - Lifestyle clients is another factor affecting import purchasing behaviour of consumers.
Lifestyle refers to the way a person lives in a society and express things in their environment. It is
determined by the client’s interests, opinions, etc. and activities shape their whole pattern of acting
and interacting in the world.
• Personality - Personality changes from person to person, time to time and place to place. Therefore,
it can greatly influence the buying behaviour of customers.
An individual’s personality also affects his buying behaviour. Every individual has his/her own
characteristic personality traits which reflect in his/her buying behaviour. A fitness freak would
always look for fitness equipment’s whereas a music lover would happily spend on musical
instruments, CDs, concerts, musical.

 PSYCHOLOGICAL FACTORS
There are four major psychological factors that affect the purchasing behaviour of consumers. These
are: perception, motivation, learning, beliefs and attitudes.
• Motivation - The level of motivation also affects the purchasing behaviour of customers. Each
person has different needs, such as physiological needs, biological needs, social needs, etc. The nature
of the requirements is that some are more urgent, while others are less pressing. Therefore, a need
becomes a motive when it is most urgent to lead the individual to seek satisfaction.
• Perception - Select, organize and interpret information in a way to produce a meaningful experience
of the world is called perception. There are three different perceptual processes which are selective
attention, selective distortion and selective retention. In the case of selective attention, sellers try to
attract the attention of the customer. Whereas in case of selective distortion, customers try to interpret
the information in a way that supports what customers already believe. Similarly, in the case of
selective retention, marketers try to retain information that supports their beliefs.
• Beliefs and Attitudes - Client has specific beliefs and attitudes towards different products. Because
such beliefs and attitudes shape the brand image and affect consumer buying behaviour so traders are
interested in them. Marketers can change beliefs and attitudes of customers with special campaigns in
this regard.

(c) List out the components of the marketing environment. Examine the factors that you
consider while introducing an online tutoring service.
Marketing Environment concerns the influences or variables of the external and internal environment
of a firm that controls the marketing management’s capability to construct and preserve the
flourishing relationships with the consumer. An assortment of environmental forces affects a
company’s marketing arrangement.

Micro environment - forces close to the company that affect its ability to serve its customers

❖ Macro environment - larger societal forces that affect the whole macro environment.

1. Micro-environment:
The micro-environment of the company consists of various forces in its immediate environment that
affects its ability to operate effectively in its chosen markets.
This includes the following:

(a) The company

(b) Company’s Suppliers
(c) Marketing Intermediaries
(d) Customers
(e) Competitors
(f) Public

The Company: In designing marketing plans, marketing management takes other company groups
into account – Finance, Research and Development, Purchasing, Manufacturing, Accounting, Top
Management etc. Marketing manager must also work closely with other company departments.
Finance in concerned with funds and using funds to carry out the marketing plans.
Internal Environment (Within the Co.):
The marketing management, in formulating plans, takes the other groups into account:
Top Management, Finance, R&D, Manufacturing, Purchasing, Sales Promotion, Advertisement etc.
Company’s Suppliers: Suppliers provide the resources needed by the company to product its goods
and services. They are important links in the company’s overall customer “value delivery system”.
Supplier developments can seriously affect marketing.
Marketing managers must watch supply availability – supply shortages or delays, labor strikes and
other events can cost sales in the short run and damage customer satisfaction in the long run.
Marketing Managers also monitor the price trends of their key inputs. Rising supply costs may force
price increases that can harm the company’s sales volume.
Marketing Intermediaries: Intermediaries or distribution channel members often provide a valuable
link between an organization and its customers. Large-scale manufacturing firms usually find it
difficult to deal with each one of their final customers individually in the target markets. So they
chose intermediaries to sell their products.
Marketing intermediaries include resellers, physical distribution firms, marketing service agencies,
and financial intermediaries. They help the company to promote, sell, and distribute its goods to final
buyers.
Physical distribution: Firms help the company to stock and move goods from their points of origin
to their destinations. Working with warehouse and transportation firms, a company must determine
the best ways to store and ship goods, and safety marketing services agencies are the
marketing research firms, advertising agencies, media firms, and marketing consulting firms that help
the company target and promote its products to the right markets.
Customers: Consumer markets consist of individuals and households that they buy goods and
services for personal consumption. Business markets buy goods and services for further processing or
for use in their production process, whereas reseller markets buy goods and services to resell at a
profit.
Government markets are made up of government agencies that buy goods and services to produce
public services or transfer the goods and services to others who need them. Finally, international
markets consist of the buyers in other countries, including consumers, producers, resellers and
governments. Each market type has special characteristics that call for careful study by the seller.
Competitors: No single competitive marketing strategy is best for all companies. The company’s
marketing system is surrounded and affected by a host of competitors. Each firm should consider its
own size and industry position compared to those of its competitors. These competitors have to be
identified, monitored and out maneuvered to gain and maintain customer loyalty.
Industry and competition constitute a major component of the micro-environment. Development of
marketing plans and strategy is based on knowledge about competitors’ activities. Competitive
advantage also depends on understanding the status, strength and weakness of competitors in the
market.
Large firms with dominant positions in an industry can use certain strategies that smaller firms cannot
afford. But being large is not enough. There are winning strategies for large firms, but there are also
losing ones. And small firms can develop strategies that give them better rate of return than large
firms enjoy.
Public: General public do take interest in the business undertaking. The company has a duty to
satisfy the people at large along with competitors and the consumers. A public is defined as “any
group that has an actual or potential interest in or impact on a company’s ability to achieve its
objectives.
Public relations is certainly a broad marketing operation which must be fully taken care of Goodwill,
favourable reactions, donations and hidden potential fixture buyers are a few of the responses which a
company expects from the public.
Every company is surrounded by seven types of public, as shown below:

1. Financial—banks, stock-brokers, financial institutions.

2. Media—Newspaper, magazines, TV.
3. Government—Government departments.
4. Citizen—Consumer Organizations; environment groups.
5. Local—neighbourhood residents, community groups.
6. General—General Public, public opinions.
7. Internal—Workers, officers, Board of Directors

Macro Environment:

The macro-environment consists of broader forces that not only affect the company and the industry,
but also other factors in the micro-environment.
The components of a macro-environment are:

(a) Demographic Environment

(b) Economic Environment
(c) Physical Environment
(d) Technological Environment
(e) Political Environment
(f) Legal Environment
(g) Social and Cultural Environment

A. Demographic Environment: Demography is the study of population characteristics that are used
to describe consumers. Demographics tell marketers who are the current and potential customers,
where are they, how many are likely to buy and what the market is selling. Demography is the study
of human populations in terms of size, density, location, age, sex, race, occupation and other statistics.
For example, one of the demographic characteristic is the size of family. With the number of small
families increasing in India, the demand for smaller houses and household items has increased
significantly. Similarly, the number of children in a family has reduced significantly over the years.
So, per child spending in a family has increased significantly.
Income: Income determines purchasing power and status. Higher the income, higher is the
purchasing power. Though education and occupation shapes one’s tastes and preferences, income
provides the means to acquire that.
Life-style: It is the pattern of living expressed through their activities, interests and opinion. Life-
style is affected by other factors of demography as well. Life-style affects a lot on the purchase
decision and brand preferences.
Sex: Gender has always remained a very important factor for distinction. There are many companies
which produce products and services separately for male and female.
Education: Education implies the status. Education also determines the income and occupation. With
increase in education, the information is wider with the customers and hence their purchase decision
process is also different. So the marketers group people on the basis of education.
Social Class: It is defined as the hierarchical division of the society into relatively distinct and
homogeneous groups whose members have similar attitudes, values and lifestyle.
Occupation: This is very strongly associated with income and education. The type of work one does
and the tastes of individuals influence one’s values, life-style etc. Media preferences, hobbies and
shopping patterns are also influenced by occupational class.
Age: Demographic variables help in distinguishing buyers, that is, people having homogenous needs
according to their specific wants, preferences and usages. For instance, teenagers usually have similar
needs. Therefore, marketers develop products to target specific age groups.
The youth are being targeted through advertisements and promotional campaigns, stores are being
designed with ‘youthful’ features, youth events are being sponsored, and even new technology is
developed with their tastes in mind.

B. Economic Environment:
Economic environment is the most significant component of the marketing environment. It affects the
success of a business organization as well as its survival. The economic policy of the Government,
needless to say, has a very great impact on business. Some categories of business are favorably
affected by the Government policy, some adversely affected while some others remain unaffected.
The economic system is a very important determinant of the scope of private business and is therefore
a very important external constraint on business.
The economical environmental forces can be studied under the following categories:

(i) General Economic Conditions:

General Economic Conditions in a country are influenced by various factors. They are:
• Agricultural trends
• Industrial output trends
• Per capita income trends
• Pattern of income distribution
• Pattern of savings and expenditures
• Price levels
• Employment trends
• Impact of Government policy
• Economic systems.

(ii) Industrial Conditions:

Economic environment of a country is influenced by the prevalent industrial conditions as well as

industrial policies of a country.
A marketer needs to pay attention to the following aspects:
• Market growth
• Demand patterns of the industry
• Its stage in product life cycle.

(iii) Supply sources for production:

Supply sources required for production determines inputs which are available required for
production.
They are:
• Land
• Labour
• Capital
• Machinery and equipment etc.

Economic environment describes the overall economic situation in a country and helps in analysis
GNP per capita rate of economic growth, inflation rate, unemployment problems etc.

C. Physical Environment:
The physical environment or natural environment involves the natural resources that are needed as
inputs by marketers or those that are affected by marketing activities. Environmental concerns have
grown steadily in recent years. Marketers should be aware of trends like shortages of raw materials,
increased pollution, and increased governmental intervention in natural resources management.
Companies will have to understand their environmental responsibility and commit themselves to the
‘green movement’.
Potential shortages of certain raw materials, for examples, oil, coal, minerals, unstable cost of energy,
increased levels of pollution; changing role of Government in environment protection are a few of the
dangers the world is facing on physical environment forces.

D. Technological Environment:
Technological discoveries and developments create opportunities and threats in the market. The
marketer should watch the trends in technology. The biggest impact that the society has been
undergoing in the last few years is the technological advancement, product changes and its effects on
consumers.
Instead of moving into the new technologies, many old industries fought or ignored them and their
business declined. Yet it is the essence of market capitalism to be dynamic and tolerate the creative
destructiveness of technology as the price of progress.

Technology essentially refers to our level of knowledge about ‘how things are done’. That
understands this aspect of the marketing environment is much more than simply being familiar with
the latest hi-tech innovations. Technology affects not only the type of products available but also the
ways in which people organize their lives and the ways in which goods and services can be marketed.
Ex: Computer-aided design (CAD) and computer-aided manufacturer (CAM)

E. Political Environment:
The political environment consists of factors related to the management of public affairs and their
impact on the business of an organization. Political environment has a close relationship with the
economic system and the economic policy. Some Governments specify certain standards for the
products including packaging.
Some other Governments prohibit the marketing of certain products. In most nations, promotional
activities are subject to various types of controls. India is a democratic country having a stable
political system where the Government plays an active role as a planner, promoter and regulator of
economic activity.
Businessmen, therefore, are conscious of the political environment that their organization faces. Most
Governmental decisions related to business are based on political considerations in line with the
political philosophy following by the ruling party at the Centre and the State level.

F. Legal Environment:
Marketing decisions are strongly affected by laws pertaining to competition, price-setting,
distribution arrangement, advertising etc. It is necessary for a marketer to understand the legal
environment of the country and the jurisdiction of its courts.
The following laws affected business in India:

• Indian Contract Act 1872

• Factories Act 1948
• Minimum Wages Act 1948
• Essential Commodities Act 1955
• Securities Contracts Regulation Act 1956 (SEBI Act)
• The Companies Act 1956
 • Trade and Merchandise Act 1958
• Environment Protection Act 1986
• Consumer Protection Act 1986
• Securities and Exchange Board of India Act 1992
• Different Taxation Laws.

G. Social and Cultural Environment:

Socio-cultural forces refer to the attitudes, beliefs, norms, values, lifestyles of individuals in a society.
These forces can change the market dynamics and marketers can face both opportunities and threats
from them. Some of the important factors and influences operating in the social environment are the
buying and consumption habits of people, their languages, beliefs and values, customs and traditions,
tastes and preferences, education and all factors that affect the business.

2. (a) Distinguish between cause-related and social marketing. (3m)

Basis Cause-related marketing Social marketing

Drive sales or enhance brand image Promote behavioural change or
Objective by associating with a social cause social good by influencing attitudes
or nonprofit organization. and behaviours in target populations.
Partnerships between businesses Utilize marketing principles to
Approach and nonprofits where a portion of address social issues through
sales or campaign proceeds support research, segmentation, and tailored
the cause. strategies.
Consumers or clients encouraged Specific populations or communities
Target to support the cause by purchasing affected by the social issue being
Audience associated products or services. addressed.
Company donating proceeds from Public health campaign promoting
Example pink-themed products during Breast smoking cessation to reduce
Cancer Awareness Month. smoking rates.
Business-driven, aiming to benefit Society-driven, aiming for positive
Focus both the cause and the brand social outcomes in areas like health,
environment, or community.
Increased sales and brand loyalty, Behaviour change, improved
Outcome along with support for the partnered societal conditions, and positive
cause. impacts on public health or welfare.

(b) “Consumer value propositions are essential part of a company’s business strategy”. Explain.
Also, list the components of customer value. (7m)
Consumer value propositions are indeed vital elements of a company's business strategy because they
articulate the unique value that a company offers to its customers.

Here's why they are so crucial:

1. Competitive Differentiation: In a crowded marketplace, companies need to stand out. A clear and
compelling value proposition helps differentiate a company's offerings from those of its competitors.
2. Customer Understanding: Crafting a value proposition requires a deep understanding of customer
needs, desires, and pain points. This understanding allows companies to tailor their offerings to better
meet customer expectations.

3. Communication: A well-defined value proposition serves as a communication tool both internally

and externally. It aligns employees around a common understanding of the company's value and
resonates with customers, leading to better marketing and sales outcomes.

4. Customer Retention and Loyalty: When customers perceive value in a company's products or
services, they are more likely to remain loyal and continue doing business with that company over
time.

5. Revenue Growth: By delivering value that meets or exceeds customer expectations, companies can
attract new customers and encourage existing ones to purchase more frequently or at higher price
points, thus driving revenue growth.

Components of customer value can vary depending on the industry and specific context, but they
generally include:

1. Quality: Customers expect products or services to meet their quality standards. This includes
reliability, durability, and performance.

2. Price: Customers evaluate the price of a product or service in relation to the perceived benefits or
value received. This doesn't necessarily mean the lowest price, but rather the best value for the price.

3. Convenience: Customers value convenience in terms of accessibility, ease of purchase, and use.
This could include factors such as location, online ordering, or customer support availability.

4. Innovation: Offering something new or unique can create value for customers. Innovation could
come in the form of new features, technology, or approaches to solving customer problems.

5. Brand Reputation: A strong brand reputation can enhance customer value by providing assurance
of quality, reliability, and trustworthiness.

6. Customer Service: Excellent customer service can differentiate a company from its competitors
and enhance the overall customer experience.

7. Personalization: Tailoring products or services to meet individual customer needs or preferences

adds value by making the offering more relevant and meaningful to the customer.

By integrating these components into their value propositions, companies can effectively
communicate the benefits they provide to customers and differentiate themselves in the marketplace.

(c) Explain to the stimulus-response model of customer behaviour. How do you apply the model
to a laptop purchase. (10m)
As illustrated in the figure above, the external stimuli that consumers respond to include the
marketing mix and other environmental factors in the market. The marketing mix (the four Ps)
represents a set of stimuli that are planned and created by the company. The environmental stimuli are
supplied by the economic, political, and cultural circumstances of a society. Together these factors
represent external circumstances that help shape consumer choices.

The internal factors affecting consumer decisions are described as the “black box.” This “box”
contains a variety of factors that exist inside the person’s mind. These include characteristics of the
consumer, such as their beliefs, values, motivation, lifestyle, and so forth. The decision-making
process is also part of the black box, as consumers come to recognize they have a problem they need
to solve and consider how a purchasing decision may solve the problem. As a consumer responds to
external stimuli, their “black box” process choices based on internal factors and determine the
consumer’s response–whether to purchase or not to purchase.

This model assumes that regardless of what happens inside the black box (the consumer’s mind), the
consumer’ response is a result of a conscious, rational decision process. Many marketers are skeptical
of this assumption and think that consumers are often tempted to make irrational or emotional buying
decisions. In fact, marketers understand that consumers’ irrationality and emotion are often what
make them susceptible to marketing stimuli in the first place.

For this reason, consumer purchasing behavior is considered by many to be a mystery or “black box.”
When people themselves don’t fully understand what drives their choices, the exchange process can
be unpredictable and difficult for marketers to understand.

Buyer’s response will be to choose particular product, brand, dealer and payment mode.

Psychological Factors in the Buyer Black Box

Motivation
Motives are needs that are sufficiently pressing to direct the person to seek fulfilment of the need.
Needs can be of various natures. And those needs can become a motive when they are sufficiently
intensive. The most popular theory that addresses needs is Abraham Maslow’s Hierarchy of Needs.
The latter explains that human needs are arranged in a hierarchy, from the most pressing one to the
least pressing one. According to Maslow, a person tries to satisfy the most important need first. Not
before that need is satisfied is will stop being a motivator. Then, the person will try to satisfy the next
most important need. To understand how motivation works is crucial for marketers. The reason is that
motivation steers the buyer black box, by directing the decision for and against products.

Perception
Every person has an individual picture of the world. That is a result of perception, which plays a
major role in the buyer black box. Perception is the process by which a person selects, organizes and
interprets information. By that process, a meaningful picture of the world is generated.
Therefore, people often have different perceptions of the same stimulus. To understand these
perceptions is important in order to understand the buyer black box.
Selective attention is an individual’s ability to notice and pay attention to specific environmental
stimuli, but not others.
Selective retention refers to the fact that individuals cannot retain all of the information that they
process.
Selective comprehension refers to consumers interpreting information in a way that confirms that
beliefs that they already hold.

Learning
Learning is another factor contributing to the stimulus-transformation in the buyer black box. Every
time a person acts, he or she learns. This means a change in his or her behaviour arising from
experience. Imagine a consumer buys a Mercedes-Benz. If the experience is rewarding, which it will
probably be, the consumer’s response will be reinforced. Then, the next time that consumer buys a
car; the probability is greater that he or she will buy a Mercedes again. Thus, learning can be the
decisive factor in the buyer black box.

Beliefs and Attitudes

Through all the doing and learning, a person acquires beliefs and attitudes. These factors, in turn,
influence the buyer black box. If a buyer has negative beliefs about a product based on learning, it is
unlikely that he or she will buy it in the future. Also, the person will have a negative attitude towards
the product. Certainly, beliefs and attitudes of a person are quite difficult to change. Therefore,
marketers should concentrate on trying to fit the products into existing attitudes instead of attempting
to change them.
Attitude: Expressions of inner feelings that reflect whether a person is favorably or unfavourably
predisposed to some object. ‘Object’ can be a brand, a brand name, a service, a service provider, a
retail store, a company, an advertisement, in essence, any marketing stimuli, Opinions.
‘Beliefs’ refers to a consumer’s views on brands, products, or services, that is based on actual factual
knowledge or personal opinion.

Lifestyle
The way in which a person lives.
Lifestyle is a way to communicate our differences, interests, and behaviour.
Types of Lifestyles
1- Active Lifestyle: If you are outgoing or extroverted. An active lifestyle includes exercising,
socializing, and doing the work you love.
 2- Healthy Lifestyle: A healthy lifestyle includes eating nutritious food. You avoid junk food or
fast food.
3- Solo Lifestyle: People who like to be alone tend to have this lifestyle.
These people like to earn, travel, eat, etc., alone.
4- Rural Lifestyle: Rural lifestyle is followed in villages. The daily routine of these people includes
doing farm-related work. They live close to nature. It is a peaceful way of living life.
5- Urban Lifestyle: Urban lifestyle is more concentrated in cities. This is a fast-paced lifestyle. People
who like to explore several things love this type of lifestyle. City life is often tough but exciting.
6- Nomadic Lifestyle: A nomad is someone who wanders from one place to another. The ancient
people in central Asia acquired this lifestyle. They used to move around with their horses. A nomadic
lifestyle avoids attachment with anything
7- Bohemian Lifestyle: This is an artistic lifestyle. Bohemian lifestyle is considered as a spiritual
lifestyle too. This type will make your travel and seek adventures. It will complete your musical
desires.
8- Digital Lifestyle: Most of us live half of our day in this lifestyle. People are going more and more
digital as time passes.

Applying the stimulus-response model to a laptop purchase:

1. Stimulus: The consumer sees an advertisement for a new laptop featuring its sleek design, high-
performance specifications, and innovative features. This serves as the stimulus.

2. Perception: The consumer perceives the laptop as visually appealing, technologically advanced,
and potentially capable of meeting their computing needs.

3. Cognition: The consumer engages in cognitive processes by researching the laptop further. They
compare its specifications, read reviews from other users, and consider factors such as price,
warranty, and available configurations.

4. Behavioural Response: Based on their research and evaluation, the consumer decides to purchase
the laptop. They may do so online or visit a store to make the purchase, completing the behavioural
response.

In summary, the stimulus-response model illustrates how external stimuli influence consumer
perceptions, cognitive processes, and ultimately, purchasing behaviour. Applying this model to a
laptop purchase demonstrates how marketing stimuli can lead to consumer decisions and actions in
the marketplace.

3. (a) Classify the means of extending product line. (3m)

Product-line managers are concerned with length of product line. If adding items to the product line
can increase profits, then we can say that the product line is too short. On the contrary, the line is too
long if dropping items can increase profits. They have to consider these two extremes of the product
line and have to strike a balance between them.
Company objectives influence product-line length. Companies seeking high market share and market
growth will carry longer lines. Companies that emphasize high profitability will carry shorter lines
consisting of carefully chosen items.
A company can lengthen its product line in 2 ways viz.
a) Line stretching
b) Line filling

Line Stretching:
This occurs when a company lengthens its product line beyond its current range. This is a frequent
measure taken by companies to enter new price slots and to cater to new market segments. The
product may be stretched by the addition of new models, sizes, variants etc. The company can stretch
in 3 ways:
 Down-market stretch
 Up market stretch
 Two-way stretch

Line filling:
As the name applies, filling means adding a product to fill a gap in the existing line. The company
wants to portray itself as full line company and that customers do not go to competitors for offers or
models in particular price slots.

(b) Examine the Kotler’s 5 levels of product. (7m)

Philip Kotler proposes that in planning its market offering, the marketer needs to think through 5
levels of the product. Each level adds more customer value and taken together forms Customer Value
Hierarchy.

a) Core Benefit or Product:

This is the most fundamental level. This includes the fundamental service or benefit that the customer
is really buying. For example, a hotel customer is actually buying the concept of “rest and sleep”

b) Basic or Generic Product:

The marketer at this level has to turn the core benefit to a basic product. The basic product for hotel
may include bed, toilet, and towels.

c) Expected Product:
At this level, the marketer prepares an expected product by incorporating a set of attributes and
conditions, which buyers normally expect they purchase this product. For instance, hotel customers
expect clean bed, fresh towel and a degree of quietness.

d) Augmented product:
At this level, the marketer prepares an augmented product that exceeds customer expectations. For
example, the hotel can include remote-control TV, fresh, flower room service and prompt check-in
and checkout. Today’s competition essentially takes place at the product-augmentation level. Product
augmentation leads the marketer to look at the user’s total consumption system i.e. the way the user
performs the tasks of getting, using fixing and disposing of the product.

Some things should be considered in case of product-augmentation strategy.

 Each augmentation adds cost. The extra benefits available in hotels add cost
 Augmented benefits soon become expected benefits. The unexpected additions like flower,
remote-controlled TV soon become very much expected by the customers from the hotel.
 As companies raise the price of their augmented product, some companies may offer a
stripped- down” i.e. no-augmented product version at much lower price. There are always a set of
low- cost hotel are available among the 5-star hotels.

e) Potential Product:
This level takes into care of all the possible augmentations and transformations the product might
undergo in the future. This level prompts the companies to search for new ways to satisfy the
customers and distinguish their offer. Successful companies add benefits to their offering that not
only satisfy customers, but also surprise and delight them. Delighting is a matter of exceeding
expectations.

(c) Discuss the stages of a product lifecycle with relevant marketing strategies. (10m)
The major stages of the product life cycle are - introduction, growth, maturity, and decline. Product
life cycle describes transition of a product from its development to decline.
Product life cycle is associated with variation in the marketing situation, level of competition,
product demand, consumer understanding, etc., thus marketing managers have to change the
marketing strategy and the marketing mix accordingly.
Product life cycle can be defined as "The change in sales volume of a specific product offered by an
organization, over the expected life of the product."

Stages of the Product Life Cycle

The four major stages of the product life cycle are as follows:-
Stage 1: Introduction,
Stage 2: Growth,
Stage 3: Maturity,
Stage 4: Saturation,
Stage 5: Decline

Introduction Stage
At this stage the product is new to the market and few potential customers are aware with the
existence of product. The price is generally high. The sales of the product is low or may be restricted
to early adopters. Profits are often low or losses are being made, this is because of the high
advertising cost and repayment of developmental cost. At the introductory stage-
 The price is generally high
 The product is unknown
 The placement is selective
 The promotion is informative and personalised.

Growth Stage
At this stage the product is becoming more widely known and acceptable in the market. Marketing is
done to strengthen brand and develop an image for the product. Prices may start to fall as competitors
enter the market. With the increase in sales, profit may start to be earned, but advertising cost remains
high. At the growth stage-
 The product is more widely known and consumed
 The sales volume increases
 The price begin to decline with the entry of new players
 The placement becomes more widely spread
 The promotion is focused on brand development and product image formation.

Maturity Stage
At this stage the product is competing with alternatives. Sales and profits are at their peak. Product
range may be extended, by adding both wide and depth. With the increases in competition the price
reaches to its lowest point. Advertising is done to reinforce the product image in the consumer's
minds to increase repeat purchases. At maturity stage-
 The product is competing with alternatives,
 The sales are at their peak
 The prices reaches to its lowest point
 The placement is intense, and
 The promotion is focused on repeat purchasing.

Saturation Stage:
This is the stage when the sales reach the peak point. Competition intensifies further & profit begins
to decline. Small competitors may withdraw from the market because of their incapability to face the
competition.
Marketing Strategies: This is the stage where the marketing manager must try to reposition his
product. Most of the strategies in this stage are offensive in nature. Each manufacture tries to cut
down his competitor’s market share by aggressive promotion policy. The objective of marketing in
this stage is to retain the present sales level.

Decline Stage
At this stage sales start to fall fast as a result product range is reduced. The product faces reduced
competition as many players have left the market and it is expected that no new competitor will enter
the market. Advertising cost is also reduced. Concentration is on remaining market niches as some
price stability is expected there. Each product sold could be profitable as developmental costs have
been paid at earlier stage. With the reduction in sales volume overall profit will also reduce. At
decline stage-
 The product faces reduced competition
 The sales volume reduces
 The price is likely to fall
 The placement is selective
 The promotion is focused on reminding.

4. (a) Distinguish between volume and deep segmentation with suitable examples. (3m)

Volume segmentation - Bulk buyers, Moderate buyers, Small buyers.

Deep segmentation in marketing refers to the process of dividing a market into smaller, more precise
segments based on detailed criteria, often using advanced data analytics and machine learning. Here
are some examples of how deep segmentation can be applied in marketing:

1. Behavioral Segmentation in E-commerce

Segments Identified:
Frequent buyers who purchase every month
Bargain hunters who only buy during sales
Browsers who frequently visit the site but rarely purchase
New customers who have made their first purchase within the last month
Marketing Application: Personalized email campaigns are created for each segment.

2. Psychographic Segmentation in the Fitness Industry

Segments Identified:
Fitness enthusiasts who prioritize health and exercise regularly
Casual exercisers who work out a few times a month for general wellness
Weight loss-focused users
Socially motivated users who prefer group activities and classes
Marketing Application: The app offers customized workout plans and notifications..

3. Geodemographic Segmentation in Retail

Segments Identified:
Urban professionals in metropolitan areas
Suburban families in residential zones
Rural dwellers in agricultural regions

4. Technographic Segmentation in Tech Industry

Segments Identified:
Early adopters who are always looking for the latest tech
Mainstream users who adopt technology once it becomes popular
Late adopters who are cautious about new technology
Tech-averse users who avoid technology

5. Cultural Segmentation in the Food and Beverage Industry

Segments Identified:
Traditionalists who prefer culturally authentic and traditional foods
Adventurers who are willing to try new and exotic cuisines
Health-conscious consumers who focus on organic and healthy options
Convenience seekers who prefer quick and easy meal solutions

Deep segmentation allows marketers to craft highly personalized and effective strategies, leading to
better customer engagement, increased satisfaction, and higher conversion rates. By leveraging
detailed data and advanced analytics, businesses can gain deeper insights into their customer base and
deliver more relevant and compelling marketing messages.

(b) “There are great differences in the consumer behavior while buying car versus buying
chips”. Justify the above statement by highlighting the forms of consumer buying behavior.
(7m)

The forms of consumer buying behavior are-

1. Problem/need recognition
This is often identified as the first and most important step in the customer’s decision process. A
purchase cannot take place without the recognition of the need. The need may have been triggered by
internal stimuli (such as hunger or thirst) or external stimuli (such as advertising or word of mouth).

2. Information search
Having recognised a problem or need, the next step a customer may take is the information search
stage, in order to find out what they feel is the best solution. This is the buyer’s effort to search
internal and external business environments, in order to identify and evaluate information
sources related to the central buying decision. Your customer may rely on print, visual, online media
or word of mouth for obtaining information.

3. Evaluation of alternatives
As you might expect, individuals will evaluate different products or brands at this stage on the basis
of alternative product attributes – those which have the ability to deliver the benefits the customer is
seeking. A factor that heavily influences this stage is the customer’s attitude. Involvement is another
factor that influences the evaluation process. For example, if the customer’s attitude is positive and
involvement is high, then they will evaluate a number of companies or brands; but if it is low, only
one company or brand will be evaluated.

4. Purchase decision
The penultimate stage is where the purchase takes place. Philip Kotler (2009) states that the final
purchase decision may be ‘disrupted’ by two factors: negative feedback from other customers and the
level of motivation to accept the feedback

5. Purchase
A need has been created, research has been completed and the customer has decided to make a
purchase. All the stages that lead to a conversion have been finished. However, this doesn’t mean it’s
a sure thing. A consumer could still be lost. Marketing is just as important during this stage as during
the previous.

6. Post-purchase behaviour
In brief, customers will compare products with their previous expectations and will be either satisfied
or dissatisfied. Therefore, these stages are critical in retaining customers. This can greatly affect the
decision process for similar purchases from the same company in the future, having a knock-on effect
at the information search stage and evaluation of alternatives stage. If your customer is satisfied, this
will result in brand loyalty, and the Information search and Evaluation of alternative stages will often
be fast-tracked or skipped altogether.
On the basis of being either satisfied or dissatisfied, it is common for customers to distribute their
positive or negative feedback about the product. This may be through reviews on website, social
media networks or word of mouth. Companies should be very careful to create positive
post-purchase communication, in order to engage customers and make the process as efficient as
possible.

(c) Explain the various segmenting methods used by marketers in consumer markets.
(10m)
Market segmentation involves grouping and sub grouping of consumers on the basis of similar
buying characteristics. There are a number of bases on which such segmentation or grouping of
consumers can be done.
 These bases are as under.
I. Consumer Characteristics –
 Geographic
 Demographic & Socio Economic
 Psychographic

II. Consumer Responses –

 Benefits
 Usage
 Loyalty
 Occasion

I. Consumer Characteristics Approach: Under this approach, person characteristics of

consumers as to where they live, who they are, how they behave, etc. are considered for making
segmentation of markets. Following is the brief explanation of these bases.

 Geographic Segmentation: Geographic segmentation is the most traditional basis of market

segmentation, which is used widely even today. The market is divided into different geographical
units as continents, countries, states, districts, regions and areas, etc. As the consumers in different
areas have different preferences and tastes for products, marketing managers distinguish carefully
among the regions, in which they may operate and select only those where they have comparative
advantage. Sometimes, they may even operate in all those regions paying attention to the
geographical needs and preferences of consumers in those regions. In geographic segmentation,
markets are divided into different geographic units. These units may include cities, regions, countries,
or continents. Sometimes consumers may have different buying habits, needs and expectations
depending on where they live.

 Demographic and Socio-economic Segmentation: Demography means the study of

population. Demographic segmentation is based on demographic variables, such as age, sex marital
status, family size, place of residence, etc. Socio-economic segmentation is based on socio-economic
characteristics, such as income level, education, occupation, social class, religion and culture, family
life cycle, etc. n demographic segmentation, markets are divided into segments on the basis of
demographic criteria like age, sex, family size, education, income, and social class. Consumers with
similar demographic variables tend to have similar expectations, preferences and usage habits. The
demographic variables can be compared to other segmentation variables, relatively easy to obtain and
evaluate For example, the market for consumer goods in India is segmented into 3 segments - high
income group, middle class and lower income group. The middle class is further segmented husband
and wife working, young family with only husband working etc. Such a type of segmentation helps in
developing on demographic variables is the most popular for two reasons; firstly consumer wants,
preferences and usage rates are highly associated with these variables, and secondly, these variables
are easier to measure than most other types of variables.

 Psychographic Segmentation: Psychographic tries to describe the human character of

consumers that has influence on their responses to products, packings, and advertising and public
relations efforts of the firm. Psychographic characteristics include variable like - personality,
attitudes, and life-style.
(i) Personality - Personality means the individual’s consistent reaction to world around him.
Personality reflects the behaviour of people. The personality variables are - dominance,
aggressiveness, objectivity, achievement motivation, etc. These influence the buying behaviour.
 According to personality study conducted by a study group in U.S.A., it was revealed that Ford cars
attracted the personalities with features like ‘independent, impulsive, masculine, alert to change and
self-confident, whereas Chevrolet cars are used by people who are conservative, thrifty, prestige
conscious, less masculine and seeking to avoid extremes. Thus, personality has impact on buying
behaviour.
(ii) Life-style - Life-style indicates the person’s living and spending of time and money. It
influences a person’s allocation of income across his needs and among different brands of products.
Thus, the customers can be grouped as Pleasure Seekers (or hedonistic), who try to purchase the latest
varieties of goods and services without caring for their prices; Status Seekers, who try to buy the
goods and services of superior quality that will reflect a high status in the society; and Plan People,
who go for economical and normal quality goods and services that do their job quite decently.
(iii) Attitude - Attitude describes a person’s predisposition and perception towards objects,
individuals and events. It describes the positive or negative feeling of consumers towards the market
mix offered to him by a firm and the firm it. Attitudes are developed among the people out of beliefs,
knowledge and thinking.

II. Consumer Responses –

 Benefit Segmentation:
Grouping consumers based on the benefits they seek from a product or service. This method focuses
on understanding what drives consumer decision-making. For example, a toothpaste manufacturer
may offer different variants targeting consumers seeking whitening, cavity protection, or sensitivity
relief benefits.

 Occasion Segmentation:
Segmenting based on the specific occasions or situations in which consumers use a product or
service. This method involves understanding when and why consumers make purchasing decisions.
For instance, snack companies may promote different products for everyday snacking, special
occasions, or on-the-go consumption.

 Usage Segmentation:
Dividing consumers based on their usage rate or level of consumption of a product or service. This
method helps identify heavy users, moderate users, light users, and non-users, allowing companies to
tailor marketing efforts accordingly. For example, mobile phone companies may offer different plans
targeting heavy data users versus occasional users.

Each of these segmentation methods offers insights into different aspects of consumer behavior and
preferences, allowing companies to develop targeted marketing strategies and effectively reach their
target audience. Depending on the nature of the product or service and the specific goals of the
marketing campaign, companies may use one or a combination of these segmentation methods.

5. (a) Explain the term ‘Cognitive Dissonance’. (3m)

Cognitive dissonance in marketing refers to the discomfort or tension consumers feel when they hold
conflicting beliefs or attitudes, typically after making a purchase decision. This occurs when their
expectations don't align with their actual experiences. Marketers often encounter this phenomenon
when consumers perceive a discrepancy between a product's promised benefits and its actual
performance. Addressing cognitive dissonance is crucial in marketing to ensure customer satisfaction
and loyalty. Marketers can mitigate it by providing reassurance, offering post-purchase support, or
adjusting their messaging to align with reality.
(b) Examine the new product pricing strategies adopted by marketers in the consumer market.
(7m)
Pricing strategies in marketing involve determining the optimal price for a product or service to
maximize profitability and achieve business objectives. Some common pricing strategies include:

 Cost-based pricing: Setting prices based on production costs, including materials, labour, and
overhead.

 Competitive pricing: Pricing products in line with or slightly below competitors' prices to gain
market share or maintain competitiveness.

 Value-based pricing: Setting prices based on the perceived value of the product or service to
the customer, regardless of production costs.

 Penetration pricing: Introducing a product at a low price to quickly capture market share,
with the potential to increase prices later.

 Price skimming: Setting high initial prices to target early adopters or segments willing to pay
a premium, then gradually lowering prices to attract more price-sensitive customers.

 Dynamic 0pricing: Adjusting prices in real-time based on demand, market conditions, or

individual customer characteristics.

 Bundle pricing: Offering discounts or incentives for purchasing multiple products or services
together.

Each strategy has its advantages and considerations, and the choice depends on factors such as market
dynamics, product positioning, and business objectives.

(c) List the three brand elements that constitute a brand’s identity. Also analyze various
handling strategies adopted in consumer market. (10m)

A brand is a name, term, design, symbol or any other feature that identifies one seller's good or
service as distinct from those of other sellers.

Three brand elements that constitute a brand's identity are:

1. Brand Name: The name by which a brand is known, which serves as a key identifier and can
evoke certain associations and perceptions in consumers' minds.

2. Brand Logo: A visual representation of the brand, typically consisting of symbols, shapes, colors,
and typography, that helps consumers recognize and remember the brand.

3. Brand Slogan/Tagline: A short and memorable phrase or sentence that encapsulates the brand's
essence, values, or unique selling proposition, often used in marketing communications to reinforce
brand identity.
The branding strategies adopted in consumer market are:
a) Generic Products
b) Manufacturer brands
c) Private brands
d) Family brands
e) Individual Brands

a) Generic products
Companies sell their products without any investment in branding.
• Basic level label
• No branding
• Little money to promote or advertise
• Cheaper than branded products

b) Manufacture brands
• Produced and promoted by the manufacturer.
• Coca-cola, Samsung, Apple

c) Private brands
A private brand is “A good that is manufactured for and sold under the name of a specific retailer,
competing with brand-name products.”

d) Family brands / Umbrella Branding

• Common brand name that is used for several related products.

Example-

e) Individual Brands
• Promoted independently rather then being bundled under a company name or family brand.
• Cost of promoting is higher
• Individual branding is “A brand marketing strategy where a parent brand gives a product a
new identity, a unique brand name, and allows it to function independently”.
6. (a) Distinguish between conventional marketing channel and vertical marketing

Conventional Marketing Channel:

1. Independent: Each member works separately.

2. Limited Control: Manufacturers have less say.
3. Flexible Prices: Prices can vary among different sellers.

Vertical Marketing System (VMS):

1. Together: Members work as a team.

2. More Control: Manufacturers have more influence.
3. Efficient: Coordination leads to smoother operations.
4. Shared Risk: Everyone shares challenges and successes.

(b) Explain the AIDA model in marketing communication. (7m)

Attention: Potential customers become aware of a product or service usually through PR,
advertising, etc.
Interest: The customer becomes more interested in the brand, product or service by learning its
benefits and any shared affinities.
Desire: The customer develops an active interest in the product or service and holds a favorable
perception or opinion.
Action: Purchase intent is formed, the customer buys, trials or shops around, they are 'in-market' for
the product.
(c) Discuss the steps in development effective communication. (10m)

Stages in designing message:

1. Identify the target audience.
2. Determine the communication objectives.
3. Design the message.
4. Select the communication channels.
5. Establish the total communication budget.
6. Decide on the communication mix (online and offline)

7. (a) Compare the push and pull marketing strategies with appropriate examples. (3m)

Basis Push marketing Pull marketing

Pushing products to Attracting customers to

Definition customers through products they're already
promotions. looking for.

Goal The goal is to generate The goal is to build brand

immediate sales by pushing awareness, credibility, and
products onto customers. customer loyalty over time.
In push marketing, the focus Pull marketing aims to
Approach is on reaching out to attract consumers towards
 consumers to promote products or services by
products or services. creating demand.
Creating informative content
Sending promotional emails, like how-to guides or
placing advertisements on product tutorials, optimizing
Example websites, and distributing website content for search
flyers door-to-door. engines, and engaging with
followers on social media to
build a community around
the brand.

(b) Explain the components of marketing plan.

A marketing plan typically consists of several key components:
1. Executive Summary: A brief overview of the entire marketing plan, including key objectives,
strategies, and anticipated outcomes.
2. Market Analysis: An assessment of the market environment, including analysis of the industry,
target market demographics, competitors, and market trends.
3. Marketing Objectives: Clear, specific, and measurable goals that the marketing efforts aim to
achieve within a certain timeframe. These objectives should align with the overall business
objectives.
4. Target Market Segmentation: Identification and description of specific segments within the target
market based on demographics, psychographics, behavior, or other relevant factors.
5. Positioning Strategy: Determination of how the product or service will be positioned in the minds
of the target customers relative to competitors, emphasizing unique selling propositions and value
propositions.
6. Marketing Mix (4Ps or 7Ps):
- Product: Description of the product or service being offered, including features, benefits, and any
unique selling points.
- Price: Pricing strategy, including pricing tactics, discounts, and payment terms.
- Place (Distribution): Channels and methods used to distribute the product or service to the target
market, including logistics and inventory management.
- Promotion: Overview of the promotional strategies and tactics, including advertising, public
relations, sales promotions, and digital marketing.
7. Marketing Budget: Allocation of financial resources to various marketing activities and initiatives,
including advertising, promotions, research, and personnel.
8. Implementation Plan: Detailed action plans outlining specific tasks, responsibilities, timelines, and
resources required to execute the marketing strategies effectively.
9. Evaluation and Control: Metrics and benchmarks to measure the performance and effectiveness of
the marketing efforts, as well as mechanisms for monitoring progress and making adjustments as
needed.
10. Contingency Plans: Strategies and measures to address potential risks, challenges, or unforeseen
circumstances that may arise during the implementation of the marketing plan.
By including these components in a marketing plan, businesses can develop a comprehensive
roadmap for achieving their marketing objectives and driving success in the marketplace.
(c) Discuss various elements of sales promotion mix and their relevance in the marketing of new
products. (10m)
The sales promotion mix consists of various promotional tools or techniques that businesses use to
stimulate consumer purchasing, increase demand, and drive sales. These elements are particularly
relevant in the marketing of new products to create awareness, generate interest, and encourage trial.
Here are some key elements of the sales promotion mix and their relevance:
1. Coupons and Discounts:
Relevance: Coupons and discounts offer immediate incentives for consumers to try a new product by
lowering the purchase barrier. They can attract price-sensitive customers and encourage them to make
a purchase decision.

2. Contests and Sweepstakes:

Relevance: Contests and sweepstakes create excitement and engagement around a new product
launch. They encourage consumers to interact with the brand, generate buzz on social media, and
increase brand visibility.

3. Samples and Free Trials:

Relevance: Offering samples or free trials allows consumers to experience the new product
firsthand, reducing their perceived risk. It provides an opportunity to showcase the product's quality,
features, and benefits, potentially leading to future purchases.

4. Product Demonstrations:
Relevance: Product demonstrations provide an interactive way to showcase the features and benefits
of a new product. They help consumers understand how the product works, its value proposition, and
how it addresses their needs or solves their problems.

5. Loyalty Programs:
Relevance: Loyalty programs incentivize repeat purchases and foster long-term customer loyalty.
For new products, offering rewards or exclusive benefits can encourage initial trial and increase
customer retention over time.

6. Point-of-Purchase Displays:
Relevance: Eye-catching point-of-purchase displays attract attention in retail environments and
highlight the new product. They can influence impulse purchases, especially if the display effectively
communicates the product's key selling points.

7. Co-marketing Promotions:
Relevance: Partnering with complementary brands or retailers for co-marketing promotions can
amplify the reach and impact of a new product launch. Collaborative promotions leverage each
partner's audience and resources to generate mutual benefits.

8. Limited-time Offers:
Relevance: Limited-time offers create a sense of urgency and scarcity, motivating consumers to act
quickly. For new products, time-limited promotions can drive immediate sales and accelerate
adoption by creating a sense of exclusivity.

By strategically incorporating these elements into the sales promotion mix, businesses can effectively
introduce new products to the market, generate consumer interest, and stimulate initial sales, setting
the stage for long-term success and market penetration.
8. CASE STUDY:

Jio Mart, an e-commerce venture of Reliance Retail Limited, the retail arm of the leading
business conglomerate in India, Reliance Industries Limited. Jio Mart, launched in December
2019, aimed to integrate digital and neighbourhood physical retail stores to help customers get
easy access to household essentials. The Jio Mart platform aimed to connect local grocers
through an offline-to-online business model that would help consumers to place order online
and get groceries delivered from a store nearby. Reliance started signing up small Kirana stores
(mom-and-pop stores) to empanel them. Jio storefront, representing a blend of Reliance Retail's
distribution centres, Reliance Jio's customer base, the neighbourhood mass-and-pop stores, and
owned by reliance. Reliance partnered with Facebook's WhatsApp messaging service in April
2020 to pilot its online food and grocery channel Jio partnership to lead to WhatsApp being
used by small businesses to connect with customers. Later, the online grocery platform extended
its services to 200 cities and towns across India. The soft launch of Jio Mart took Reliance one
step closer to taking on c-commerce companies like Amazon, Flipkart, Paytm, Swiggy and
Zomato, which had already established themselves in the Indian e-commerce market. However,
it remained to be seen whether Reliance Retail would be able to revolutionise the e-commerce
industry with Jio- Mart.

a) Examine the impact of covid-19 on Indian retail and how it has changed the industry.
(10m)
b) Analyse how e-commerce players can change the retailing scenario in a given situation.
(10m)

a) The impact of COVID-19 on Indian retail has been significant, prompting substantial changes in
the industry:

1. Shift to Online Channels: The pandemic accelerated the shift towards online shopping as
consumers sought to minimize physical contact and adhere to social distancing norms. This led to a
surge in e-commerce sales, particularly for essential goods like groceries and household items.

2. Digital Transformation: Retailers were forced to adopt digital technologies and omnichannel
strategies to stay competitive and meet changing consumer preferences. This included the adoption of
online ordering, contactless delivery, and digital payment solutions.

3. Rise of Local Kirana Stores: Neighbourhood Kirana stores witnessed a resurgence in demand as
consumers preferred to shop closer to home to avoid crowded malls and supermarkets. This trend
highlighted the importance of convenience and proximity in retail.

4. Supply Chain Disruptions: The lockdowns and disruptions in transportation and logistics posed
challenges for retailers, leading to inventory shortages and delivery delays. Retailers had to adapt
their supply chains to ensure uninterrupted availability of essential goods.

5. Focus on Health and Safety: Retailers implemented stringent health and safety measures in stores
to protect customers and employees. This included sanitation protocols, temperature checks, and
crowd management strategies.
Overall, COVID-19 accelerated the digital transformation of the Indian retail industry, reshaping
consumer behavior and forcing retailers to innovate and adapt to the new normal.

b) E-commerce players have the potential to significantly change the retailing scenario in various
ways:

1. Expansion of Market Reach: E-commerce platforms can reach a wider audience beyond
traditional brick-and-mortar stores, enabling retailers to tap into new customer segments and
geographic markets.

2. Convenience and Accessibility: E-commerce offers convenience and accessibility, allowing

customers to shop anytime, anywhere, from the comfort of their homes. This convenience factor can
drive customer loyalty and repeat purchases.

3. Personalization and Targeting: E-commerce platforms leverage data analytics and machine
learning algorithms to personalize the shopping experience, recommend relevant products, and target
customers with tailored promotions and offers.

4. Omnichannel Integration: E-commerce players can integrate online and offline channels to create
seamless omnichannel experiences for customers. This integration enables retailers to leverage the
strengths of both channels and provide a cohesive shopping journey.

5. Innovative Technologies: E-commerce companies are at the forefront of adopting innovative

technologies such as artificial intelligence, augmented reality, and voice commerce to enhance the
shopping experience and differentiate themselves from competitors.

In summary, e-commerce players have the potential to disrupt the retailing scenario by offering
convenience, personalization, and innovative solutions that cater to evolving consumer needs and
preferences.