MARKETING

2023
Section A 10 Q*1 M=10 Marks

1. What do you mean by marketing?

Ans:- It is the process of promoting and selling products or services which satisfies
peoples wants and needs. And is it about identifying and meeting human & social
needs
2. Describe the elements of marketing mix?
Ans:- Product, Price, Place, Promotion, People, Process & Physical evidence
3. What do you meant by PLC?
Ans:- Product Life Cycle – It is the process of products growth , maturity and decline
over time
4. Identify your major categories of customers?
Ans:- The major categories of customers typically include individual consumers,
businesses, government entities, and non-profit organizations
5. What do you mean by competitive advantage ?
Ans:- Competitive advantage refers to factors that allow a company to produce
goods or services better or more cheaply than its rivals
6. Differentiate between selling and Marketing concepts
Ans:- Selling focuses on pushing products to customers, while marketing focuses on
meeting customer needs and creating value
7. What is the role of demand in price determination?
Ans:- Demand influences price; higher demand can lead to higher prices, while lower
demand can lead to lower prices
8. What do you mean by flat organisation?
Ans:- A company with a flat organizational structure means there are few or no
hierarchical levels between employees and leadership
9. Enumerate types of pricing methods
Ans:- 1. Cost-based pricing 2. Value-based pricing
3. Competition-based pricing 4. Dynamic pricing
10. What is Segmentation ?
Ans : Segmentation is the process of dividing a company's target market into groups
of potential customers with similar needs and behaviours
11. What is product ?
Ans: A product is any item or service you sell to serve a customer's need or want
12. Why most of products fail in market ?
Ans : Products often fail in the market due to factors such as
1. Inadequate market research 2. Ineffective marketing strategies
3. Poor product design
Section B 4 Q*5 M=20 Marks
1. What do you mean by marketing organizations? Explain any two of them
Ans :- A marketing organization is essentially the team and structure within a
company that's responsible for all its marketing activities. This includes tasks like
understanding customer needs, promoting products or services, and creating a
strong brand image. The specific structure of a marketing organization can vary
depending on the company's size and industry, but two common structures are:

Functional Structure: This is a traditional approach where the marketing

department is divided into teams based on specific functions, like market
research, advertising, public relations, and sales promotion. Each team has
specialists who handle tasks within their area of expertise. This structure works
well for larger companies with a wide range of marketing activities. It ensures
clear ownership and accountability for each function.

Market-Oriented Structure: This structure revolves around customer segments

rather than marketing functions. The marketing team is divided into groups, each
focused on a specific target market. Each group has specialists from various
marketing disciplines working together to tailor strategies for their assigned
market segment. This structure is beneficial for companies with diverse customer
bases. It allows for a more targeted and customer-centric approach.
2. Explain the Segmentation criteria
Ans:- Sure! Segmentation criteria are like different ways to group people based
on things they have in common. Here's a simpler breakdown:
- Demographic Segmentation: This means sorting people by things like age,
gender, where they live, how much money they make, their job, family size,
or even their ethnicity.
- Geographic Segmentation: It's about dividing people based on where they
live, whether it's by country, city, neighborhood, or even climate or
population density.
- Psychographic Segmentation: This is all about sorting people based on their
personalities, interests, lifestyles, attitudes, or the way they think and feel.
- Behavioral Segmentation: Here, people are grouped by their actions or
behaviors, like how often they buy something, how loyal they are to a brand,
what they use a product for, or how much of it they use.
- Benefit Segmentation: This means sorting people by what they want to get
out of a product or service. Some might want one thing while others want
something completely different.
- Usage Segmentation: It's about sorting people based on how much they use
a product or service. Some might use it a lot, some a little, and some might
not use it at all.
 - Occasion Segmentation: This is about when people use or buy something. It
could be for special events, regular routines, or different situations.
- Technographic Segmentation: This is about how people use technology, like
what devices they use, how they use social media, or their overall attitude
towards technology.
These criteria help companies understand their customers better and create
products, services, and marketing that fit the different groups of people more
accurately

3. Discuss briefly the offensive strategies used by marketers.

Ans:-
Targeted Advertising: Utilizing data analytics to identify and reach specific
demographics likely to be interested in a product or service.
Content Marketing: Creating valuable and engaging content to attract and retain
customers, often through blogs, videos, and social media.
Influencer Marketing: Collaborating with popular personalities on social media to
promote products and services to their followers.
Guerrilla Marketing: Unconventional and creative advertising tactics that aim to
surprise and engage consumers in unexpected ways.
Product Differentiation: Highlighting unique features or benefits of a product to
distinguish it from competitors and appeal to target audiences.

4. Explain pricing strategies in brief

Ans:-
Penetration Pricing: Setting a low initial price to quickly gain market share and
attract customers, with the intention of raising prices later.
Premium Pricing: Setting a high price to convey exclusivity, luxury, or superior
quality, often used for products with unique features or strong branding.
Price Skimming: Setting a high initial price to capitalize on early adopters or
customers willing to pay a premium, then gradually lowering the price to attract
more price-sensitive segments.
Psychological Pricing: Setting prices that appeal to customers' psychological
perceptions, such as using odd pricing ($9.99 instead of $10) or bundle pricing to
create the perception of value.
Dynamic Pricing: Adjusting prices in real-time based on factors such as demand,
competitor pricing, and customer demographics, often used in online retail and
travel industries.
5. Explain determinants of channel design decisions
Ans:-
Channel design decisions are all about figuring out the best way to get your
product or service from you to the customer. There are a number of factors that
influence this choice, and they can be broadly categorized into four main areas:
1. Customer Needs
* What are your target customers looking for in terms of how they buy?
* Do they prefer to research online and then buy in store (omnichannel) or do
they want everything done digitally (direct sales)?
* Understanding your customer's buying habits is crucial for designing a channel
that meets their expectations.
2. Product Characteristics
* The type of product you're selling will also play a big role.
* Complex, expensive products might be better suited for a more direct sales
approach with well-trained salespeople, while simpler, faster-moving goods can
be sold through a wider variety of channels.
* Consider factors like perishability, size, and technical complexity.
3. Company Capabilities
* What resources and experience does your company have for managing
different channels?
* A small startup might not have the resources to effectively manage a complex
distribution network with multiple intermediaries, while a large corporation
might have the infrastructure to handle it well.
4. Environmental Factors
* The overall economic climate, legal regulations, and even things like
competition in the marketplace can all influence channel design decisions.
* For example, a recession might make it more important to focus on cost-
effective channels, while legal restrictions on certain products might limit your
distribution options.

By considering all of these factors, businesses can make informed decisions

about how to design their distribution channels to reach their target markets
effectively.
Section C 1 Q*10 M=10 Marks

1. Explain importance of societal marketing concept in today's competitive

environment for the automobile industry
Ans:- The societal marketing concept is crucial in today's competitive environment
for the automobile industry due to several reasons:

Environmental Concerns: With increasing awareness of environmental issues like

pollution and climate change, consumers are demanding more eco-friendly vehicles.
Adhering to societal marketing principles by offering fuel-efficient cars, electric
vehicles, and promoting sustainability initiatives can enhance brand image and
competitiveness.
Consumer Expectations: Modern consumers are socially conscious and expect
companies, including automakers, to contribute positively to society. Embracing
societal marketing means addressing societal needs and concerns, such as safety
features, accessibility, and inclusivity in vehicle design and marketing.
Ethical Practices: In an era of heightened transparency and accountability,
businesses are under pressure to adopt ethical practices throughout their
operations. Societal marketing requires automobile companies to ensure fair labor
practices, responsible sourcing of materials, and transparent communication with
stakeholders.
Brand Reputation: A strong societal marketing approach can bolster brand
reputation and customer loyalty. By aligning with societal values and demonstrating
corporate social responsibility, automobile companies can differentiate themselves
in the market and attract consumers who prioritize ethical and socially responsible
brands.
Regulatory Compliance: Governments worldwide are implementing stricter
regulations to address environmental concerns and promote sustainable practices in
industries like automotive. Embracing societal marketing principles can help
automobile companies stay ahead of regulatory changes and avoid penalties while
also contributing to broader societal goals.
Competitive Advantage: In a crowded marketplace, companies that prioritize
societal marketing gain a competitive edge. By actively engaging with communities,
supporting social causes, and integrating ethical considerations into their business
strategies, automobile companies can differentiate themselves from competitors
and appeal to increasingly discerning consumers.

Overall, the societal marketing concept is not just a moral imperative but also a
strategic necessity for automobile companies looking to thrive in today's competitive
environment. It aligns business objectives with societal welfare, fostering long-term
sustainability and success
2. Explain PLC taking an example of your own in Indian market
Ans:- Sure! Let's consider the Product Life Cycle (PLC) using an example from the
Indian market: the evolution of smartphones.

Introduction Stage: In the early 2000s, smartphones were introduced to the Indian
market as high-end devices with limited features and expensive price tags.
Companies like Nokia, BlackBerry, and HTC were among the first to introduce
smartphones in India.
During this stage, the market was primarily composed of tech enthusiasts,
professionals, and high-income individuals who valued the novelty and advanced
features of smartphones.

Growth Stage: By the late 2000s and early 2010s, smartphones started gaining
popularity among a broader consumer base in India.
The introduction of more affordable smartphones with improved features, such as
touchscreen interfaces, better cameras, and access to mobile apps, fueled market
growth.
Companies like Samsung, Micromax, and local brands like Karbonn and Lava began
offering a wide range of smartphones catering to different price segments.
Increasing smartphone penetration, coupled with expanding mobile internet access,
contributed to rapid market growth during this stage.

Maturity Stage: By the mid-2010s, the Indian smartphone market entered the
maturity stage characterized by intense competition and market saturation.
Major players like Samsung and Chinese brands such as Xiaomi, Vivo, and Oppo
dominated the market.
During this stage, product differentiation became crucial as companies focused on
offering unique features, competitive pricing, and aggressive marketing strategies to
maintain or gain market share.
Additionally, there was a shift towards online sales channels, with e-commerce
platforms playing a significant role in smartphone distribution.

Decline Stage: While the Indian smartphone market has not yet entered the decline
stage, certain trends suggest a gradual slowing down of growth.
Factors such as market saturation, longer replacement cycles, and the emergence of
new technologies (e.g., wearables, IoT devices) could potentially impact smartphone
sales in the future.
Companies are innovating by introducing new form factors (foldable smartphones),
5G technology integration, and focusing on emerging consumer segments to prolong
the maturity stage and delay the onset of decline.
This example illustrates how the Product Life Cycle concept applies to the Indian
smartphone market, showcasing the evolution from introduction to potential future
stages. It also highlights the importance of understanding market dynamics and
adapting strategies accordingly to sustain competitiveness throughout the PLC.
Section D Case Study 1 Q*10 M=10 Marks
Read the following case and answer questions at end:
Case on "How Coca-Cola's low-cost solar cooler is helping Coke spread its wing in
villages"

Coke is convinced that the new business generated more than pays for the cost of
the solar cooler. It plans to distribute 1,000 boxes free to women entrepreneurs in
Madhya Pradesh, UP, Himachal Pradesh and some parts of West Bengal by 2013.
KOLKATA: As the first rays of the winter sun hit the small solar panels perched on the
roof of Roop Devi's kirana store in a remote village in Bareilly, Uttar Pradesh, a direct
current compressor motor whirrs into life. It refrigerates a small, opaque, boxstyled
cooler inside her shop. A few hours later Devi opens the box and makes her first sale-
an ice-cold bottle of Coke.

It's just another Coke sold, except that the sale has been made in a village that
doesn't have any electricity. As the thirsty villager gulps down the fizzy chill gushing
out of the bottle, Coca-Cola India moves another step closer to prying open the
market in 80,000 Indian villages that do not have any electricity. Of these, 25,000
have little chance of being connected to the power grid BSE -0.84% in the
conventional way. Coca-Cola India first toyed with the idea of a low-cost solar
powered cooler when its president and CEO Atul Singh visited a rural market in Uttar
Pradesh in the summer of 2009. Shops there served him warm Coke. When Singh
returned, he charged two young Coke engineers, Chandan Samanta and Sunil Gulati,
now aged 35 and 40, respectively, with the task of figuring out a low-cost solution.

Three-and-a-half years later, 400 such boxes deployed across many villages are
delivering a five- fold increase in sales. Coke is convinced that the new business
generated more than pays for the cost of the solar cooler. It plans to distribute 1,000
boxes free to women entrepreneurs in Madhya Pradesh, UP, Himachal Pradesh and
some parts of West Bengal by 2013.

The number will go up to 4,000-5,000 in the next 3-4 years. Moreover, at least 22
countries in the Coke universe have lifted 400 such boxes from Coca-Cola India and
are adapting it to their markets. And Samanta and Gulati have become celebrities
their project was showcased at the global all business unit president's meet this April
and again at Coca-Cola shareholder's meet in May, both at Atlanta BSE 3.32 %, "It
helps when we can decode the consumer's voice, not just fur launching new
products, but also newer packages, price points, etc," says India CEO Singh. "Solar
cooler is one such example of an innovation based on local insights and ground
realities."
Ans:
Target Market:

* Rural Kirana stores and small businesses in villages without electricity grid access.
* Focus on areas where Coca-Cola is distributing their solar coolers (Madhya
Pradesh, UP, Himachal Pradesh, West Bengal).

*Competitive Advantage:*

*Highlight Tata Voltas' brand legacy

* Emphasize Tata's long-standing reputation for quality and reliability in India.
*Focus on cost-effectiveness:
* Price the coolers competitively compared to Coca-Cola's model.
*Offer superior cooling performance
* Market coolers with better capacity and faster chilling abilities.
* Multi-functionality
* Design coolers with features like in-built mobile charging ports, similar to Coca-
Cola, but potentially with additional functionalities like LED lighting or radio.
*Durability:* Promote the sturdiness and longer lifespan of Tata Voltas coolers
compared to competitors.

*Marketing Strategies:*

* *Develop a strong rural distribution network:* Partner with local distributors and
micro-entrepreneurs to reach remote villages.
* *Leverage social media and local advertising:* Utilize local language radio ads,
village fairs, and influencer marketing to reach target audiences.
* *Women empowerment initiatives:* Partner with NGOs or government programs
to offer the coolers at subsidized rates to women entrepreneurs, replicating Coca-
Cola's strategy.
* *Customer service and after-sales support:* Provide easily accessible customer
service and spare parts availability in rural areas.

*Promotional Campaigns:*

* *"Stay Cool, Stay Connected" campaign:* Highlight the dual benefit of cool
beverages and mobile charging capabilities.
* *"Empowering Rural Businesses" campaign:* Showcase the positive impact on
rural entrepreneurs and income generation.
* *"Made in India" campaign:* Promote the use of a domestic brand supporting
local manufacturing.
*Metrics and Evaluation:*

* Track sales figures in targeted regions.

* Monitor brand awareness and customer perception through surveys and social
media engagement.
* Analyze the effectiveness of marketing campaigns and adjust strategies based on
data.

By implementing these strategies, Tata Voltas can effectively counter Coca-Cola's

threat in the Indian market and establish itself as the leading provider of solar-
powered coolers for rural communities.
2022
Section A 10 Q*1 M=10 Marks

1. What do you mean by marketing?

Ans:- It is the process of promoting and selling products or services which satisfies
peoples wants and needs. And is it about identifying and meeting human & social
needs
2. What is Customer value?
Ans:- Customer value is best defined as how much a product or service is worth to a
customer
3. What is Holistic marketing?
Ans:- Holistic marketing is a marketing strategy that focuses on the whole business
as one entity
4. What is promotion mix?
Ans:- The promotion mix is a combination of promotional tools marketers use to
communicate with their target audience.
5. Define Consumer Behaviour?
Ans:- Consumer behaviour in marketing refers to the actions and decisions that
people make when they are purchasing or using products
6. What are marketing channels?
Ans:- Digital advertisements, Email, Events, Influencer marketing,Search engine
optimization (SEO) , Content marketing
7. Define marketing plan?
Ans:- marketing plan is the advertising strategy that a business will implement to sell
its product or service
8. What is marketing research?
Ans:- Marketing research is defined as any technique or a set of practices that
companies use to collect information to understand their target market better
9. What are growth strategies?
Ans:- A growth strategy is an organization's plan for overcoming current and future
challenges to realize its goals for expansion.
10. Define Brand equity?
Ans:- Brand equity refers to the value that a specific brand adds to a product or
service
11. What is Psychographic segmentation?
Ans:- Psychographic segmentation is a market research method used to divide a
market or customer group into segments based on their beliefs, values, lifestyle,
social status, activities, interests and opinions and other psychological criteria.
12. What is Brand Perception?
Ans:- Brand perception is what customers believe a product or service represents,
not what the company owning the brand says it does
Section B 4 Q*5 M=20 Marks
1. What are the barriers to use Marketing Research? Explain
Ans:- Cost: Marketing research, especially complex projects, can be expensive.
This can be a hurdle for businesses with limited budgets.
Time: Conducting thorough marketing research can be time-consuming, from
designing the study to collecting and analyzing data.
Expertise: Marketing research can involve complex methodologies and data
analysis. Businesses may not have the in-house expertise to conduct research
effectively.
Internal buy-in: Not everyone in a company may be convinced of the value of
marketing research.
Data overload & usability: Research can generate a lot of data, and if not
presented clearly, it can be overwhelming and difficult to translate into
actionable insights.

2. Explain the Five-stage model of Consumer buying decision process

Ans; 1. Need Recognition: This is the starting point where a consumer becomes
aware of a problem or need. It could be triggered by internal factors like hunger
or thirst, or external factors like seeing an advertisement or a friend's new
gadget.
2. Information Search: Once the need is recognized, the consumer actively seeks
information to understand their options better. This can involve internal sources
like past experiences or external sources like online research, reading reviews,
consulting with friends or experts.
3. Evaluation of Alternatives: With gathered information, the consumer weighs
the pros and cons of different brands and products that can fulfill their need.
Factors like features, price, brand reputation, and reviews all come into play
during this stage.
4. Purchase Decision: Based on the evaluation, the consumer decides which
product or service to buy. This decision might be influenced by factors beyond
the initial evaluation, such as store atmosphere, salesperson interaction, or
unexpected promotions.

3. How can companies differentiate products? Explain.

Ans; Differentiating products is a key strategy for companies aiming to stand out
in a competitive market. Here are five crucial ways companies can differentiate
their products:

Quality and Performance: Companies can focus on superior quality and

performance to set their products apart. This includes using better materials,
implementing advanced technology, or ensuring more reliable and durable products.
For example, Apple differentiates its products through high-quality design and
superior performance, creating a premium image that attracts customers.

Design and Features: Unique and innovative designs or features can significantly
differentiate a product. This could mean ergonomic design, aesthetic appeal, or
incorporating unique functionalities that competitors do not offer. Tesla, for
example, differentiates its electric vehicles with distinctive design elements and
advanced features like autonomous driving capabilities.

Branding and Marketing: Strong branding and effective marketing strategies can
create a distinct identity for a product. This involves creating a memorable brand
image, using creative advertising campaigns, and fostering a strong brand
reputation. Coca-Cola’s branding, with its iconic logo and consistent marketing
messages, distinguishes its products from other soft drinks.

Customer Service:Exceptional customer service can be a significant differentiator.

Providing excellent after-sales support, personalized services, and ensuring a
seamless customer experience can create a loyal customer base. For instance,
companies like Zappos have built their brand on exceptional customer service,
ensuring customer satisfaction and loyalty.

Pricing Strategy: A strategic approach to pricing can also differentiate products. This
includes premium pricing for high-end products, competitive pricing for mass-market
products, or employing price skimming strategies for new product launches.
Companies like IKEA offer stylish furniture at affordable prices, differentiating
themselves through a value-for-money proposition.

4. What are the requirements for effective segmentation?

Ans:- Actionable: Your segments should be usable in real-world campaigns. This
means you can tailor your marketing messages and approaches to resonate with
each specific segment.
Differentiable: The segments you create should have distinct characteristics.
People in one segment should be meaningfully different from those in another
segment in terms of their needs, wants, or behaviors.
Measurable: You should be able to quantify the size and characteristics of each
segment. This allows you to track the effectiveness of your targeted campaigns.
Accessible: You should be able to reach your target segments through marketing
channels that are cost-effective. This may involve using specific media platforms,
social media groups, or other targeted advertising methods.
Substantial: Each segment should be large enough to be profitable to target. It
wouldn't be efficient to create a segment with only a handful of potential
customers.
5. What are the competitive strategies for market leaders? Explain
Ans:- Differentiating products is a key strategy for companies aiming to stand out
in a competitive market. Here are five crucial ways companies can differentiate
their products:
Quality and Performance:
Companies can focus on superior quality and performance to set their products
apart. This includes using better materials, implementing advanced technology,
or ensuring more reliable and durable products. For example, Apple
differentiates its products through high-quality design and superior performance,
creating a premium image that attracts customers.
Design and Features:
Unique and innovative designs or features can significantly differentiate a
product. This could mean ergonomic design, aesthetic appeal, or incorporating
unique functionalities that competitors do not offer. Tesla, for example,
differentiates its electric vehicles with distinctive design elements and advanced
features like autonomous driving capabilities.
Branding and Marketing:
Strong branding and effective marketing strategies can create a distinct identity
for a product. This involves creating a memorable brand image, using creative
advertising campaigns, and fostering a strong brand reputation. Coca-Cola’s
branding, with its iconic logo and consistent marketing messages, distinguishes
its products from other soft drinks.
Customer Service:
Exceptional customer service can be a significant differentiator. Providing
excellent after-sales support, personalized services, and ensuring a seamless
customer experience can create a loyal customer base. For instance, companies
like Zappos have built their brand on exceptional customer service, ensuring
customer satisfaction and loyalty.
Pricing Strategy:
A strategic approach to pricing can also differentiate products. This includes
premium pricing for high-end products, competitive pricing for mass-market
products, or employing price skimming strategies for new product launches.
Companies like IKEA offer stylish furniture at affordable prices, differentiating
themselves through a value-for-money proposition.
Section C 1 Q*10 M=10 Marks

1. What Challenges does a company face in developing new products and services?
Discuss
Ans:- Understanding the Market:
Market Uncertainty: Even with thorough research, predicting consumer preferences
and overall demand for a new offering can be tricky. What seems like a brilliant idea
might not resonate with the target audience, leading to losses.
Competition: The market is a dynamic space. Competitors are constantly innovating
and vying for a share of the same customer base. A company needs to carefully
analyze the competitive landscape and ensure their product stands out.

Product Development Challenges:

Technical Hurdles: Sometimes, innovative ideas run into technical roadblocks.
Developing a product might require overcoming technical complexities that
necessitate significant investment in research and development (R&D).
User Experience: An amazing product idea can flop if the user experience (UX) is
clunky or confusing. Creating an intuitive and user-friendly experience is crucial for
ensuring customer satisfaction and product adoption.

Resource Constraints:
Resource Allocation: New product development demands resources, including
finance, manpower, and time. A company needs to strategically allocate these
resources, balancing innovation with the needs of existing operations.
Risk Management: There's always a chance that a new product might not succeed.
Companies need to have risk management strategies in place to mitigate potential
losses and course-correct if necessary.

Other Challenges:
Regulatory Compliance: Depending on the industry, new products and services
might need to comply with various regulations and standards. Failure to comply can
lead to delays or even product recalls.
Marketing and Customer Adoption: Even a well-designed product needs a strong
marketing push to reach the target audience. Creating a compelling message and
convincing customers to adopt a new offering can be challenging.
2. What are the pros and cons of online marketing? How can companies carry out
effective social media campaigns?
Ans:- Pros
Expertise: Online marketing companies have a team of specialists who stay up-to-
date on the latest trends and algorithms. They can handle complex tasks like SEO
and social media management, freeing you to focus on running your business.
Scalability: They can adapt their strategies to your budget and goals, allowing you to
grow your online presence as your business expands.
Measurable Results: They can track and analyze data to show you the effectiveness
of your campaigns and make adjustments for better results.
Time-Saving: Hiring an online marketing company saves you the time and effort of
recruiting, training, and managing an in-house marketing team.

Cons
Cost: Hiring an online marketing company can be expensive, especially for small
businesses.
Loss of Control: You cede some control over your brand messaging and marketing
strategy.
Finding the Right Fit: Not all online marketing companies are created equal. It's
important to find one that aligns with your industry, budget, and target audience.
Communication Challenges: Ensure clear communication to avoid
misunderstandings about your goals and expectations.
Effective Social Media Campaigns
Here are some tips for running effective social media campaigns:

Define your goals: What do you want to achieve with your social media presence?
Brand awareness, increased sales, or customer engagement?
Know your audience: Tailor your content and messaging to resonate with your
target demographic.
High-Quality Content: Create engaging content that educates, entertains, or inspires
your audience. Visuals are especially important on social media.
Be Consistent: Post regularly and consistently to stay top-of-mind with your
followers.
Run Contests and Giveaways: Encourage engagement and brand awareness with
interactive campaigns.
Social Listening: Respond to comments and messages promptly, and use social
listening tools to track brand mentions and industry trends.
Track and Analyze: Monitor your social media analytics to see what's working and
what's not.
Section D Case Study 1 Q*10 M=10 Marks

Nike hit the ground running in 1962. Originally known as Blue Ribbon Sports, the company
focused on providing high-quality running shoes designed for athletes by athletes. Founder
Philip Knight believed high-tech shoes for runners could be manufactured at competitive
prices fi imported from abroad. Nike's commitment to designing innovative footwear for
serious athletes helped build a cult following among U.S. consumers. Nike believed in a
"pyramid of influence" where the preferences of a small percentage of top athletes
influenced the product and brand choices of others. Nike's marketing campaigns have
always featured accomplished athletes. For example, runner Steve Prefontaine, the
company's first spokesperson, had an irreverent attitude that matched Nike's spirit. In 1985,
Nike signed up then-rookie guard Michael Jordan a s a spokesperson. Jordan was still an up-
and- comer, but he personified superior performance. Nike's bet paid of- the Air Jordan line
of basketball shoes flew off the shelves and revenues hit more than $ 100 million ni the first
year alone. As one reporter stated, "Few marketers have so reliably been able ot identify
and sign athletes who transcend their sports to such great effect." In 1988, Nike aired the
first ads in its $ 20 million "Just Do It" ad campaign. The campaign, which ultimately
featured 12 TV spots in all, subtly challenged a generation of athletic enthusiasts to chase
their goals. It was a natural manifestation of Nike's attitude of self-empowerment through
sports. As Nike began expanding overseas, the company learned that its U.S.-style ads were
seen as too aggressive in Europe, Asia, and South America. Nike realized it had to
"authenticate" its brand in other countries, so it focused on soccer (called football outside
the United States) and became active as a sponsor of youth leagues, local clubs, and
national teams. However, for Nike to build authenticity among the soccer audience,
consumers had to see professional athletes using its product, especially athletes who won.

Nike's big break came in 1994 when the Brazilian team (the only national team for which
Nike had any real sponsorship)wonthe World Cup. That victory transformed Nike's
international image from a sneaker company into a brand that represented emotion,
allegiance,and identification. Nike's new alliance with soccer helped propel the brand's
growth internationally. In 2003, overseas revenues surpassed U.S. revenues for the first
time, and ni 2007, Nike acquired Umbro, a acqusi oin ate Ncie hte soel superio more na ed
protestional soccer teams around the world and boosted Nike's international presence and
authenticity in soccer. The company sold Umbro in 2012 for $225 million. In recent years,
Nike's international efforts have been focused on emerging markets.

During the 2008 Summer Olympics in Beijing, Nike honed in on China anddeveloped an
aggressive marketing strategy that countered Adidas's sponsorship of the Olympic Games.
Nike received special permission from the International Olympic Committee to run Nike ads
featuring Olympic athletes during the games. In addition, Nike sponsored several teams and
athletes, including most of the Chinese teams. This aggressive sponsorship strategy helped
ignite sales in the Asian region by 15 percent. In addition to expanding overseas, Nike has
successfully expanded its brand into many sports and athletic categories, including
footwear, apparel, and equipment. Nike continues to partner with high-profile and
influential athletes, coaches, teams, and leagues to build credibility in these categories. For
example, Nike aligned with tennis stars Maria Sharapova, Roger Federer, and Rafael Nadal
to push its line of tennis clothing and gear. Some called the famous 2008 Wimbledon match
between Roger Federer and Rafael Nadal- both dressed in swooshes from head to toe-a
five-hour Nike commercial valued at $ 10.6 million. To promote its line of basketball shoes
and apparel, Nike has partnered with basketball superstars such as Kobe Bryant and LeBron
James. In golf, Nike's swoosh appears on many golfers but most famously on Tiger Woods.
In the years since Nike first partnered with Woods, Nike Golf has grown into a $ 523 million
business and literally changed the way golfers dress and play today. Tiger's powerful
influence on the game and his Nike-emblazoned Nike-emblazoned style has turned the
greens at the majors into "golf's fashion runway."

Nike is the biggest sponsor of athletes in the world and plans to spend more than $ 3 billion
in athletic endorsements between 2012 and 2017. The company also has a history of
standing by its athletes, such as Tiger Woods and Kobe Bryant, even as they struggle with
personal problems. tI severed its relationship with Lance Armstrong in 2012

Ans:-
2021 Section A 10 Q*1 M=10 Marks
1. What do you mean by marketing?
Ans:- It is the process of promoting and selling products or services which
satisfies peoples wants and needs. And is it about identifying and meeting
human & social needs
2. What is Customer value?
Ans:- Customer value is best defined as how much a product or service is worth
to a customer
3. What is Holistic marketing
Ans:- Holistic marketing is a marketing strategy that focuses on the whole
business as one entity
4. What is promotion mix?
Ans:- The promotion mix is a combination of promotional tools marketers use
to communicate with their target audience.
5. Define Consumer Behaviour?
Ans:- Consumer behaviour in marketing refers to the actions and decisions that
people make when they are purchasing or using products
6. What are marketing channels?
Ans:- Digital advertisements, Email, Events, Influencer marketing,Search engine
optimization (SEO) , Content marketing
7. Define marketing intelligence?
Ans:- Marketing intelligence is everyday data that is relevant to the marketing
efforts of an organization
8. What is marketing research?
Ans:- Marketing research is defined as any technique or a set of practices that
companies use to collect information to understand their target market better.
9. What is Intensive growth?
Ans:- Intensive growth refers to a company's strategy to achieve growth by
focusing on its existing products and markets.
10. What is Psychographic segmentation?
Ans:- Psychographic segmentation is a market research method used to divide a
market or customer group into segments based on their beliefs, values,
lifestyle, social status, activities, interests and opinions and other psychological
criteria.
11. Define Brand Loyalty?
Ans:- Brand loyalty is when customers continue to purchase from the same
brand over and over again, despite competitors offering similar products or
services.
12. What is Brand Portfolio?
Ans:- A brand portfolio is a collection of all the brands or companies that operate
under a larger corporate umbrella.
Section B 4 Q*5 M=20 Marks
1. What influences consumer behaviour? Explain.
Ans:- Consumer behavior is influenced by several key factors:
1. Psychological Factors: These include a person's beliefs, attitudes,
motivations, and perceptions. For example, someone might buy a product
because they believe it will make them happy or fit in with a certain group.
2. Personal Factors: These involve individual characteristics such as age,
occupation, lifestyle, and economic situation. For instance, a teenager might
spend money differently than an older adult.
3. Social Factors: These are influenced by family, friends, and social
networks. Peer pressure and family recommendations can strongly affect
purchasing decisions.
4. Cultural Factors: These include values, traditions, and norms of the
society or community to which a person belongs. Cultural background can
determine what products are considered desirable or appropriate.
5. Situational Factors: These are specific circumstances that can affect
buying behavior, like the physical environment of a store, time constraints,
or special occasions.
Understanding these factors helps businesses tailor their marketing
strategies to better meet the needs and preferences of their customers.

2. What are the differences in positioning and branding for a small business?
Discuss.
Ans:- Positioning and branding are crucial for a small business, but they
focus on different aspects:
1. Positioning:
- Definition: Positioning is about how a business wants its product or
service to be perceived in the minds of customers relative to competitors.
- Goal: The goal is to create a specific image or identity that makes the
business stand out. For example, a small coffee shop might position itself as
the place with the best artisan coffee in town.
- Strategy: It involves identifying a unique selling proposition (USP) and
consistently communicating it through marketing and customer
interactions. This could be superior quality, exceptional service, or
affordability.

2. Branding:
- Definition: Branding is about creating a unique identity and personality
for the business that resonates with customers.
- Elements: This includes the business name, logo, colors, and overall
visual identity, as well as the tone of voice used in communication.
 - Experience: Branding is broader and encompasses the entire customer
experience, from the first contact with the business to post-purchase
interactions. It builds emotional connections and loyalty. For example, the
same coffee shop would focus on a cozy ambiance, friendly staff, and
consistent messaging across all platforms to reinforce its brand.

Differences:
- Focus: Positioning is focused on differentiating the business in the market,
while branding is about building a lasting identity and emotional connection
with customers.
- Scope: Positioning is a part of the broader branding strategy. While
positioning targets a specific market segment, branding encompasses the
overall perception and experience of the business.
- Outcome: Successful positioning helps a business stand out among
competitors, whereas successful branding leads to customer loyalty and
recognition.
Understanding both helps a small business attract and retain customers
effectively.

3. How can companies differentiate products explain?

Ans:- Companies can differentiate their products in several ways to stand
out from competitors:
1. Quality: Making products that are more durable, reliable, or better
performing than others.
2. Features: Adding unique attributes or functionalities that others don’t
have.
3. Design: Creating visually appealing or ergonomically better products.
4. Branding: Building a strong brand image that resonates with customers,
often through marketing and consistent messaging.
5. Customer Service: Offering superior customer support, warranties, and
after-sales service.
These strategies help a product appear distinct and more attractive to
consumers, making it easier for companies to compete in the market.

4. What are the requirements for effective segmentation? Elaborate with

example
Ans:- Effective market segmentation involves dividing a broad consumer or
business market into sub-groups of consumers based on some type of
shared characteristics. For segmentation to be effective, it must meet
several key requirements:
 Measurable: The size, purchasing power, and characteristics of the
segments can be measured. For example, a company selling fitness
equipment needs to know how many people are interested in home
workouts and how much they are willing to spend.
Accessible: The market segments can be effectively reached and served. For
instance, an online clothing store must ensure it can target and deliver
products to its chosen segments through appropriate marketing channels
and delivery systems.
Substantial: The segments are large and profitable enough to serve. A toy
manufacturer might find that targeting only left-handed children under five
is too narrow, but targeting children aged 3-7 could be substantial and
profitable.
Differentiable: The segments are distinguishable and respond differently to
different marketing strategies. For example, a smartphone company might
create different marketing strategies for tech-savvy young adults and older
adults who prefer simpler devices.
Actionable: Effective programs can be formulated to attract and serve the
segments. For example, a travel company must be able to create specific
travel packages and marketing campaigns that appeal to adventure seekers
as opposed to family vacationers.

Example:
Consider a company that sells skincare products. It can segment its market
as follows:
Measurable: They identify that 60% of their market is women aged 18-35
with a medium to high income who are interested in premium skincare.
Accessible: They can reach this segment through social media platforms like
Instagram and YouTube, where beauty influencers promote products.
Substantial: The segment is large enough to ensure profitability, as this age
group is known to spend significantly on skincare products.

5. What factor should accompany review before deciding to go abroad?

Discuss.
Ans:- Before deciding to go abroad, several important factors should be
reviewed:
Purpose of Travel: Understand why you want to go abroad. Whether it's for
study, work, vacation, or other reasons, knowing your purpose helps in
planning accordingly.
Financial Considerations: Check if you have enough money for travel,
accommodation, and living expenses. Also, consider exchange rates and the
cost of living in the destination country.
Legal Requirements: Ensure you have a valid passport, the necessary visas,
and any other required documents. Know the immigration rules and
regulations of the country you plan to visit.
Health and Safety: Research the health care system, required vaccinations,
and the overall safety of the destination. It’s also wise to get travel
insurance.
Cultural Differences: Learn about the culture, language, and customs of the
destination country. This will help you adapt more easily and avoid cultural
misunderstandings.
Section C 1 Q*10 M=10 Marks

1. What is the marketing communications mix? What are the major steps
in developing effective communications? Discuss.
Ans:- Marketing Communications Mix :- The marketing communications
mix, also known as the promotion mix, includes the various tools and
strategies used by a company to communicate with its target audience.
The main components are:
Advertising: Paid messages through media such as TV, radio, online, and
print.
Sales Promotion: Short-term incentives to encourage purchase, like
discounts, coupons, and contests.
Public Relations (PR): Building a positive image and handling
communication with the public and media.
Personal Selling: Direct interaction between a salesperson and a
customer to make a sale.
Direct Marketing: Directly reaching out to customers through mail,
email, or phone to promote products.
Digital Marketing: Online marketing efforts, including social media,
email campaigns, and SEO.

Steps in Developing Effective Communications

Identify the Target Audience: Understand who your customers are,
their preferences, behaviors, and needs. This helps in tailoring the
message.
Determine Communication Objectives: Define what you want to
achieve with your communication. Objectives could be to inform,
persuade, remind, or build relationships with the audience.
Design the Message: Craft a clear and compelling message that conveys
the desired information and appeals to the target audience. Consider
the message content, structure, and format.
Choose the Media: Select the most effective channels to reach your
audience. This could be a combination of traditional media (TV, radio,
print) and digital media (social media, websites, email).
Execute the Plan: Implement the communication strategy by launching
your campaigns through the chosen media. Ensure all materials are
prepared and distributed according to the plan.
Monitor and Evaluate: Track the performance of your communication
efforts. Use metrics like sales figures, website traffic, and customer
feedback to assess effectiveness. Make adjustments if necessary.
2. Think about the last time you went to make a major purchase in a store.
How important was the sales person in that decision? What did he or
she do that you like, or didn’t like?
Ans:- When making a major purchase in a store, the salesperson can
play a crucial role in the decision-making process. Here’s a reflection on
my experience:
Importance of the Salesperson :- The salesperson was very important in
my decision. They provided valuable information and guidance that
influenced my choice. Here’s a breakdown of what the salesperson did
that I liked and didn’t like:
What I Liked
Knowledgeable: The salesperson had a thorough understanding of the
product and could answer all my questions. They explained the features,
benefits, and differences between models, which helped me make an
informed choice.
Patient and Attentive: They listened to my needs and preferences
without rushing me. This made me feel respected and valued as a
customer.
Demonstrations: They showed me how the product works and
highlighted key features in action. Seeing the product in use helped me
visualize how it would meet my needs.
Honesty: The salesperson was honest about the product's limitations
and didn’t push me towards the most expensive option. This built trust
and made me feel confident in my decision.
Follow-up: They provided additional resources, such as brochures and
website links, for further research and even followed up with a phone
call to see if I had any more questions.
What I Didn’t Like
Overly Aggressive: Initially, the salesperson was a bit too pushy, trying
to rush me into a decision. This was off-putting and made me
uncomfortable.
Ignoring Budget Constraints: At first, they recommended options that
were significantly above my stated budget. This made me feel like they
weren’t considering my financial limits.
Overall Impact
The salesperson’s positive actions greatly influenced my decision to
make the purchase. Their knowledge, patience, and honesty were key
factors. While the initial aggressiveness was a negative, it was
outweighed by their overall helpfulness and professionalism.
2019
Section A 10 Q*1 M=10 Marks

1. Define marketing management

Ans:- Marketing management involves the planning, implementation, and control of
marketing activities aimed at achieving organizational goals and satisfying customer
needs profitably.
2. Define wants Ans:- Wants are things that people desire or wish to have, but they
are not essential for survival.
3. Define focus group discussion Ans:- A focus group discussion is a research method
where a small group of people is brought together to discuss a specific topic under
the guidance of a moderator.
4. What is consumer lifetime value? Ans:- Consumer lifetime value is the total worth
of a customer to a business over the entire duration of their relationship, considering
the revenue they generate minus the costs associated with acquiring and serving
them.
5. Define culture and subcultures
Ans:- Culture refers to the shared beliefs, values, norms, and customs that
characterize a particular group of people.
Subcultures are smaller groups within a larger culture that share some of the
overarching cultural traits but also have distinct characteristics and behaviors that
set them apart.
6. Define organisational buying, highlight how it differs from consumer buying
Ans:- Organizational buying involves businesses purchasing goods or services for
operations, differing from consumer buying by its focus on larger quantities and
specific business needs rather than personal preferences.
7. What are the criteria for effective segmentation? Ans:- The criteria for effective
segmentation are: measurable, accessible, substantial, and differentiable
8. Defined brand equity Ans:- Brand equity is the value and perception that
consumers associate with a brand.
9. What do you mean by Guerilla warfare in Marketing? Ans:- Guerilla warfare in
marketing refers to unconventional and low-cost tactics used by businesses to gain
attention and compete against larger competitors.
10. List out three different line stretching decisions with examples
Ans:- 1. Upward: Luxury 2. Downward: Basic 3. Two-Way: Moderate
11. What are the four distinctive characteristics of Services? Ans:- The four distinctive
characteristics of services are intangibility, inseparability, variability, and
perishability.
12. What is the VMS and HMS? Ans:- VMS stands for Vertical Marketing System HMS
stands for Hotel Management System.
Section B 4 Q*5 M=20 Marks
1. What are the different steps in marketing research? Explain each of the steps in
detail, taking an example from your project.
Ans:- Marketing research involves several steps to gather and analyze
information to make informed business decisions. Here's a detailed explanation
of each step, using an example project of launching a new organic skincare
product.
1. Defining the Problem:- This is the most critical step. Clearly state the issue you
want to address. This could be understanding customer needs, identifying
market opportunities, or evaluating the success of a marketing campaign.
Example: For the organic skincare product, the problem could be, "What
features do potential customers value most in an organic skincare product?"
2. Developing the Research Plan:- Create a detailed plan on how to gather
information. Decide on research methods (surveys, interviews, etc.), sample size,
and data collection techniques.
Example: You decide to conduct online surveys and focus groups. The survey will
have questions about skincare habits, preferences for organic ingredients, and
price sensitivity. Focus groups will provide deeper insights into customer
attitudes.
3. Collecting Data:- Gather the data as per your research plan. This step is crucial
and can be time-consuming. Ensure data is collected accurately and
systematically.
Example: Distribute the online survey to a diverse group of people within your
target market and conduct focus groups in different cities to get a broad range of
opinions.
4. Analyzing Data:- Examine the collected data to identify patterns, trends, and
insights. Use statistical tools and techniques to interpret the data accurately.
Example: Analyze survey results to find out the most preferred ingredients and
the acceptable price range. Review focus group discussions to understand the
emotional and psychological factors influencing purchase decisions.
5. Presenting the Findings:- Summarize and present the research findings in an
easy-to-understand format. Use charts, graphs, and reports to convey the
insights clearly to stakeholders.
Example: Create a report highlighting key findings, such as "75% of respondents
prefer products with natural ingredients like aloe vera and chamomile," and
"Customers are willing to pay a premium for eco-friendly packaging."

2. Draw a block diagram to explain the consumer buying process. Take an example
to define each of the steps in the above process.
Ans:-
 1. Consumer Needs: Example: Sarah realizes her skin feels dry and wants to
find a moisturizer.
2. Information Search: Example: Sarah asks friends for recommendations and
searches online for reviews of different moisturizer brands.
3. Evaluation of Alternatives: Example: After gathering information, Sarah
compares the ingredients, prices, and reviews of several moisturizer brands to
decide which one to buy.
4. Purchase Decision: Example: Sarah selects a moisturizer that aligns with her
preferences and budget and buys it from a nearby store.
5. Post-Purchase Evaluation: Example: After using the moisturizer for a week,
Sarah assesses whether it meets her expectations. If it does, she may become a
loyal customer. If not, she might switch to another brand in the future.

| Consumer Needs |
|
v
| Information Search |
|
v
| Evaluation of |
| Alternatives |
|
v
| Purchase Decision |

| Post-Purchase |
| Evaluation |

3. What are the different role players in the whole buying process? Explain each
with an example
Ans:- In a whole buying process, several distinct roles contribute to the decision-
making and purchasing stages. Here are five key roles, each explained with an
example:
Initiator: Definition: The person who first suggests or identifies a need for a
particular product or service.
Example: In a company, a junior software developer identifies the need for a
new project management tool to enhance team productivity and brings this need
to the attention of their manager.
Influencer: Definition: The person whose opinions and advice shape the
decision-making process. They often provide technical information or criteria
that impact the choice.
 Example: In the same company, the IT specialist provides detailed insights about
different project management tools, highlighting the pros and cons of each
option based on technical performance and compatibility with existing systems.
Decider: Definition: The person who ultimately makes the final decision about
which product or service will be purchased.
Example: The department head reviews the suggestions from the initiator and
the detailed analysis from the influencer, and decides to purchase a specific
project management tool that best meets the team's needs and budget
constraints.
Buyer:Definition: The person responsible for the actual purchase transaction.
This role often involves negotiating terms and handling logistics.
Example: The procurement officer in the company processes the purchase order,
negotiates the price and terms with the vendor, and completes the transaction
for the chosen project management tool.
User: Definition: The person or group who will use the product or service on a
day-to-day basis.
Example: The software development team members are the end-users of the
new project management tool. They interact with the tool daily to manage tasks,
track progress, and collaborate on projects.

4. What are the 10 advantages of a strong brand? Take example to explain

Ans:- A strong brand offers numerous advantages, helping companies
differentiate themselves, build loyalty, and drive growth. Using Apple as an
example, here are ten advantages of a strong brand:
Customer Loyalty: Strong brands foster customer loyalty, encouraging repeat
purchases.
Example: Apple’s customers frequently upgrade to the latest iPhone model,
demonstrating strong brand loyalty.
Premium Pricing:A strong brand allows a company to charge higher prices for its
products or services.
Example: Apple products, such as the iPhone and MacBook, are priced higher
than many competitors, yet customers are willing to pay more for the perceived
quality and status.
Brand Recognition:A strong brand is easily recognizable, which helps in
attracting new customers.
Example: Apple's logo is instantly recognizable worldwide, making it easier to
attract new customers through brand familiarity.
Customer Trust: Strong brands build trust, which can lead to increased customer
confidence in purchasing decisions.
Example: Consumers trust Apple for its consistent quality and reliable customer
service, influencing their purchase decisions.
Competitive Advantage: A strong brand provides a competitive edge in the
marketplace.
 Example: Apple’s strong brand differentiates it from other tech companies,
giving it a unique position in the market.

5. What are the steps to be followed in designing a marketing channel system ? For
a product on which you have worked as a project, go through all the steps stated
above clearly highlighting the pitfalls to be avoided.
Ans:- Designing a marketing channel system involves several key steps. Here’s a
simplified version, using an example of an organic skincare product project:

Steps to Design a Marketing Channel System

Understand Your Customers:
Steps: Research how your customers like to buy products (surveys, focus groups,
competitor analysis).
Example: We learned our customers preferred buying skincare products online
and in health food stores.
Pitfall: Skipping research can lead to choosing ineffective channels.

Set Goals and Limits:

Steps: Define what you want to achieve (reach, cost, service) and know your
limitations (budget, geography).
Example: Our goal was nationwide reach within a year, mindful of our limited
budget.
Pitfall: Unrealistic goals without considering limits can cause overextension.

Explore Channel Options:

Steps: Consider different intermediaries (wholesalers, retailers, online) and direct
vs. indirect sales.
Example: We considered selling through our website, Amazon, and health food
stores.
Pitfall: Ignoring new channels or relying too much on one can limit reach.

Evaluate Choices:
Steps: Assess each channel for cost, control, and flexibility.
Example: We compared costs and control between online sales and retail
partnerships.
Pitfall: Focusing only on cost can lead to long-term issues with control and
adaptability.

Select and Manage Partners:

Steps: Choose partners carefully and set clear agreements and performance
targets.
Example: We selected a few health food chains and an online marketplace,
setting clear sales targets.
Pitfall: Poor partner selection or unclear agreements can lead to conflicts and
poor performance.

Common Pitfalls to Avoid

Skipping Market Research
Can lead to wrong channel choices
Unrealistic Goals
Relying on One Channel
Can risk market presence if that channel fails
Ignoring Control and Flexibility
Can prevent adapting to changes
Section C 1 Q*10 M=10 Marks

1. What is a product life cycle? Explain each of the stage of plc in greater detail with
example.
Ans:- The Product Life Cycle (PLC) describes the stages a product goes through from
when it is first introduced until it is discontinued. There are four main stages:
Introduction, Growth, Maturity, and Decline. Here’s a brief explanation of each stage
with an example.
1. Introduction Stage
Characteristics: The product is launched into the market. Sales start low and grow
slowly. High costs due to marketing and development, usually resulting in low or
negative profits.
Example: When the Apple iPhone was first released in 2007, it was new to the
market. Apple spent heavily on marketing to build awareness.
2. Growth Stage
Characteristics: Sales grow rapidly as more customers become aware of and buy the
product. Profits increase as economies of scale are achieved. Competition begins to
emerge.
Example: In the years following its launch, the iPhone saw rapid sales growth as it
became more popular, and Apple expanded its availability globally.
3. Maturity Stage
Characteristics: Sales growth slows and stabilizes. The market becomes saturated.
Competition is intense, which may lead to price reductions. Profits may peak and
then start to decline.
Example: The iPhone is now in the maturity stage. Sales are steady, and Apple
releases new models regularly to maintain interest.
4. Decline Stage
Characteristics: Sales and profits decline as the product becomes outdated or less
popular due to new technologies or changing consumer preferences. Companies
may reduce marketing costs or discontinue the product.
Example: The iPod, once a market leader, saw a decline in sales as smartphones,
including the iPhone, began to offer music-playing capabilities. Apple eventually
discontinued the iPod.

Summary
Introduction: Low sales, high costs (e.g., iPhone launch).
Growth: Rapid sales increase, rising profits (e.g., early years of iPhone).
Maturity: Stabilized sales, high competition (e.g., current iPhone market).
Decline: Falling sales, reduced profitability (e.g., decline of the iPod).
Understanding the PLC helps businesses plan their marketing strategies and manage
their products effectively through each stage.
2. What are the distinctive steps to be followed in setting price of a product and service
? Taking an example of a product and a service, Explain in detail the steps followed.
Ans:- Setting the price of a product or service involves several distinct steps to
ensure it aligns with business objectives and market demand. Here are the steps
along with an example of a product (smartphone) and a service (consulting services):

Steps to Setting Price:

Market Analysis:
Steps: Understand market demand, competition, and customer preferences.
Example: Analyze smartphone market trends, competitor pricing strategies, and
customer willingness to pay.

Cost Analysis:
Steps: Determine all costs associated with producing and delivering the product or
service.
Example: Calculate the manufacturing costs, distribution expenses, and overhead for
producing the smartphone.

Set Objectives:
Steps: Define pricing objectives based on business goals, such as maximizing profit
margins, gaining market share, or achieving a certain revenue target.
Example: For the smartphone, the objective might be to capture a significant market
share in a competitive price segment.

Choose Pricing Strategy:

Steps: Select a pricing strategy that best aligns with objectives and market
conditions, such as cost-plus pricing, value-based pricing, or competitor-based
pricing.
Example: The smartphone company might opt for value-based pricing, setting the
price based on the perceived value of features and brand reputation.

Set Price:
Steps: Determine the specific price point based on the chosen strategy, considering
the costs, objectives, and perceived value.
Example: After considering all factors, the smartphone is priced at $699, reflecting its
premium features and positioning.

Steps to Setting Price for Service:

Understand Market Demand:
Steps: Assess the demand for the consulting services, including the specific needs of
potential clients and the competitive landscape.
Example: Analyze the demand for consulting services in the target industry and
geographical area.

Determine Service Costs:

Steps: Calculate all costs associated with providing the service, including labor,
overhead, and any materials or resources required.
Example: Determine the hourly rate based on the consultant's salary, overhead
expenses, and anticipated hours worked.

Define Pricing Objectives:

Steps: Establish clear pricing objectives, such as achieving a certain profit margin,
covering costs, or positioning as a premium service provider.
Example: The consulting firm may aim to set prices to achieve a 20% profit margin
while remaining competitive in the market.

Select Pricing Strategy:

Steps: Choose a pricing strategy that aligns with the objectives and market
conditions, such as value-based pricing, cost-plus pricing, or hourly rates.
Example: The consulting firm might opt for value-based pricing, charging based on
the perceived value of the expertise and results delivered.

Set Price:
Steps: Determine the specific pricing structure, whether it's hourly rates, project-
based fees, or retainer agreements, based on the chosen strategy and cost analysis.
Example: The consulting firm sets an hourly rate of $200 for its services, considering
the expertise of its consultants and the value delivered to clients