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JUNE TEE 2024
IGNOU : MCOM
MCO 6 – Marketing Management
1. Compare and contrast the concepts of marketing and selling for consumer
goods. How consumer orientation at all the levels of a company can be created ?
Give examples in support.
Marketing vs. Selling for Consumer Goods:
Marketing:
 Focus: Marketing is a customer-centric approach that revolves around identifying and satisfying
customer needs.
 Process: It involves a comprehensive set of activities, including market research, product
development, pricing, promotion, and distribution.
 Orientation: Customer satisfaction and long-term relationships are central to marketing.
 Goal: Aims to create value for customers, leading to repeat business and loyalty.
Selling:
 Focus: Selling is product-centric, emphasizing the act of convincing customers to buy existing
products.
 Process: Primarily involves promotional activities and persuasion to move products from sellers
to buyers.
 Orientation: Transaction-focused with a short-term perspective on closing sales.
 Goal: Immediate sales and revenue generation.
Creating Consumer Orientation:
1. Understand Customer Needs:

 Conduct market research to identify and analyze consumer preferences and expectations.
 Example: Apple's market research to understand user preferences, leading to the
development of innovative products like the iPhone.
2. Product Customization:

 Tailor products to meet specific consumer requirements.

 Example: Nike's customization options for shoes, allowing customers to personalize their
footwear.
3. Build Relationships:
 Foster long-term relationships by focusing on customer satisfaction and loyalty.
 Example: Amazon's emphasis on customer service, quick delivery, and personalized
recommendations.
4. Feedback Mechanisms:
 Establish effective feedback channels to gather customer opinions and suggestions.
 Example: Online platforms allowing customers to leave reviews and ratings for products
and services.
5. Transparency and Trust:
 Maintain transparency in business practices to build trust with consumers.
 Example: Companies providing clear information on product ingredients, sourcing, and
manufacturing processes.
6. After-Sales Service:
 Offer excellent after-sales service to address customer concerns and enhance satisfaction.
 Example: Automobile companies providing warranty services and prompt resolution of
issues.
7. Personalized Marketing:
 Utilize data analytics to create personalized marketing campaigns based on individual
preferences.
 Example: Retailers sending targeted promotions and discounts based on customer purchase
history.
8. Employee Training:
 Train employees to prioritize customer needs and provide exceptional service.
 Example: Zappos' customer service training for employees, resulting in a customer-focused
culture.
9. Social Responsibility:
 Engage in socially responsible initiatives to align with consumer values.
 Example: Companies adopting eco-friendly practices and supporting social causes.
By integrating these strategies, companies can shift from a selling-oriented approach to a

consumer-centric marketing approach, enhancing customer satisfaction and loyalty in the
competitive consumer goods market.
2.
2. What is Market Segmentation ? Discuss the importance and bases that can be used to
segment the market. Give example in support.
Market Segmentation:
Definition: Market segmentation is the process of dividing a heterogeneous market into smaller,
more homogeneous segments based on certain criteria. This allows businesses to tailor their
marketing strategies to meet the specific needs and preferences of each segment, enhancing the
overall effectiveness of marketing efforts.
Importance of Market Segmentation:
1. Targeted Marketing:
 Enables businesses to focus on specific customer groups with tailored marketing messages.
 Increases the relevance of marketing efforts, leading to higher engagement.
2. Resource Optimization:
 Efficient allocation of resources by targeting segments likely to respond positively.
 Reduces wastage of resources on irrelevant audiences.
3. Better Customer Satisfaction:
 Addresses the unique needs of different segments, leading to higher customer satisfaction.
 Builds stronger customer relationships and loyalty.
4. Competitive Advantage:
 Allows businesses to differentiate their products/services based on the preferences of
different segments.
 Creates a competitive edge in the market.
5. Market Adaptation:
 Helps businesses adapt to changes in market dynamics by understanding diverse consumer
behaviors.
 Facilitates quick adjustments to meet evolving market demands.
6. Optimized Product Development:
 Aids in designing products that align with the preferences of specific market segments.
 Reduces the risk of developing products with limited appeal.
Bases for Market Segmentation:
1. Demographic Segmentation:
 Divides the market based on demographic factors like age, gender, income, education.
 Example: Marketing different skincare products for different age groups.
2. Geographic Segmentation:
 Segments based on geographical factors such as location, climate, and cultural preferences.
 Example: Offering warm clothing in colder regions and light clothing in warmer areas.
3. Psychographic Segmentation:
 Considers lifestyle, values, interests, and personality traits.
 Example: Tailoring marketing messages for environmentally conscious consumers.
4. Behavioral Segmentation:
 Analyzes consumer behavior, including buying patterns, product usage, and brand loyalty.
 Example: Offering loyalty rewards for frequent purchasers.
5. Occasion Segmentation:
 Focuses on specific occasions or events that trigger purchasing behavior.
 Example: Promoting gift items during festive seasons.
6. Benefit Segmentation:
 Segments based on the perceived benefits or solutions offered by a product.
 Example: Marketing a detergent as gentle for sensitive skin or powerful for stain removal.

Understanding these segmentation bases allows businesses to create targeted marketing

strategies, resulting in more effective and impactful campaigns in the Indian market.
3. Explain Consumer Buying Decision Process taking into account level of involvement.
Discuss the factors influencing consumer in arriving of decision related to brand selection.
Consumer Buying Decision Process and Brand Selection Factors:
Consumer Buying Decision Process:
The consumer buying decision process is a series of steps that individuals go through when
purchasing a product or service. It involves various stages:
1. Problem Recognition:
 Identifying a need or a problem that can be solved through a purchase.
 Example: Realizing the need for a new smartphone due to an old one malfunctioning.
2. Information Search:
 Gathering information about available options.
 Sources include personal experiences, friends, family, advertisements, online reviews.
 Example: Researching different smartphone models, reading reviews, and comparing
features.
3. Evaluation of Alternatives:
 Assessing the available options based on criteria such as features, quality, price.
 Example: Comparing the specifications and prices of various smartphone brands.
4. Purchase Decision:
 Making the final decision to buy a specific product or service.
 Influenced by factors like brand reputation, pricing, and availability.
 Example: Choosing a particular smartphone brand and model to purchase.
5. Post-Purchase Behavior:
 Assessing the satisfaction and value derived from the purchase.
 May lead to brand loyalty or dissatisfaction, influencing future buying decisions.
 Example: Sharing positive or negative feedback about the purchased smartphone.
Level of Involvement:
Consumer involvement refers to the degree of personal relevance and importance a consumer
attaches to a particular product or decision. It can be categorized into low involvement and high
involvement.
 Low Involvement:
 Common for routine, low-cost products.
 Decisions are made quickly with minimal information search.
 Examples: Everyday grocery items, basic toiletries.
 High Involvement:
 Occurs for products with high personal significance or high cost.
 In-depth research and evaluation are conducted.

 Examples: Cars, electronics, luxury goods.
Factors Influencing Brand Selection:
1. Brand Reputation:
 Consumers often prefer brands with a positive reputation for quality and reliability.
2. Product Features:
 Unique features or innovations can attract consumers seeking specific functionalities.
3. Price:
 Affordability is a crucial factor, and consumers often weigh the perceived value against the
cost.
4. Word of Mouth and Reviews:
 Recommendations from friends, family, or online reviews influence brand perception.
5. Personal Experience:
 Previous positive experiences with a brand can lead to brand loyalty.
6. Advertising and Promotion:
 Effective marketing campaigns and promotions can create brand awareness and influence
choices.
7. Availability and Accessibility:
 Consumers may choose brands that are readily available and accessible.
Understanding the consumer buying decision process and the factors influencing brand selection
is crucial for businesses to tailor their marketing strategies and meet consumer expectations in the
Indian market.
4. (a) Explain the expanded services mix and the services marketing triangle in the
context of Indian consumer market.
Expanded Services Mix:
The services mix refers to the set of services offered by a company to meet the diverse needs of its
target market. In the Indian consumer market, the services mix has expanded to include a variety
of offerings beyond the core product or service. The expanded services mix typically includes:
1. Core Service or Product:

 The central offering that fulfills the primary need or want of the customer.
2. Augmented Services:
 Additional services and features that enhance the core offering.
 Examples: Extended warranty, free installation, after-sales support.
3. Peripheral Services:
 Services that complement the core offering but are not essential.
 Examples: Loyalty programs, product customization options, special discounts.
4. Facilitating Services:

 Supportive services that make the overall experience more convenient.

 Examples: Online ordering, home delivery, user-friendly interfaces.
5. Value-Added Services:
 Services that provide extra value beyond what competitors offer.
 Examples: Free workshops, educational resources, exclusive events.
Services Marketing Triangle:
The Services Marketing Triangle is a conceptual framework that highlights the relationships
between three key participants in the service delivery process:
1. Company (Service Provider):

 Represents the organization offering the service.
 Focuses on delivering quality services, managing customer expectations, and maintaining a
positive brand image.
2. Employees (Service Personnel):
 Frontline employees who directly interact with customers.
 Play a crucial role in service delivery, customer satisfaction, and conveying the brand
experience.
3. Customers (Service Recipients):
 Individuals or organizations receiving the services.
 Have expectations, perceptions, and experiences that influence their satisfaction and
loyalty.
In the Indian consumer market, effective coordination between these three entities is vital for
successful service delivery. Companies need to align their internal processes, empower
employees, and understand customer expectations to create a positive and memorable service
experience.
Companies in India often use cultural nuances, personalized interactions, and technology-driven
solutions to enhance the services mix and build strong relationships with customers. Additionally,
factors like trust, reliability, and responsiveness are critical in the context of the Indian consumer
market.
(b) Discuss the classification of services with examples.
Classification of Services:
Services are diverse and can be categorized based on various attributes. Here are common
classifications of services:
1. Business-to-Consumer (B2C) Services:

 Services directly provided to end consumers.
 Examples: Retail services, healthcare services, education services.
2. Business-to-Business (B2B) Services:
 Services provided between businesses.

 Examples: Consultancy services, logistics services, outsourcing services.
3. Consumer-to-Consumer (C2C) Services:
 Services facilitated between consumers.
 Examples: Online marketplace services, peer-to-peer accommodation services.
4. Professional Services:
 Services requiring specialized knowledge and skills.
 Examples: Legal services, accounting services, consultancy services.
5. Financial Services:
 Services related to financial transactions and management.
 Examples: Banking services, investment services, insurance services.
6. Health and Wellness Services:
 Services focused on healthcare and well-being.
 Examples: Hospital services, fitness services, wellness coaching.
7. Hospitality and Tourism Services:
 Services related to travel, accommodation, and recreation.
 Examples: Hotel services, airline services, tour operator services.
8. Information and Communication Services:
 Services involving information exchange and communication.
 Examples: Telecommunication services, internet services, media services.
9. Educational Services:
 Services related to learning and skill development.
 Examples: School services, training services, online education services.
10. Government and Public Services:
 Services provided by government institutions for public welfare.
 Examples: Public transportation services, healthcare services, law enforcement services.
11. Entertainment and Leisure Services:
 Services focused on entertainment and recreational activities.
 Examples: Movie theater services, amusement park services, event management services.
12. Utility Services:
 Essential services for daily living.
 Examples: Water supply services, electricity services, waste management services.
Each classification encompasses a wide range of specific services, and the nature of services often
involves a combination of elements from multiple categories.
5. Write short notes on the following :
(a) Advantages and disadvantages of Branding
(b) Product positioning
(c) Cost based pricing
(d) Trade discounts and allowances

(a) Advantages and Disadvantages of Branding:
Advantages:
1. Recognition and Loyalty: A strong brand builds recognition and customer loyalty, fostering
repeat business.
2. Premium Pricing: Brands can command higher prices, leading to increased profit margins.
3. Product Differentiation: Brands differentiate products in a competitive market, creating a unique
identity.
4. Consumer Trust: Brands convey trust and quality, influencing purchasing decisions positively.
5. Market Expansion: Strong brands facilitate market expansion and global presence.
Disadvantages:
1. Costs: Establishing and maintaining a brand can be expensive.

2. Risk of Damage: Negative events can harm a brand's reputation.
3. Limited Flexibility: Established brands may face challenges in adapting to changing trends.
4. Brand Dilution: Extending a brand too broadly may dilute its identity and impact.
5. Dependency: Over-reliance on a brand may hinder innovation and diversification.
(b) Product Positioning:
Definition: Product positioning refers to the way a product is perceived in the minds of
consumers concerning competing products.
Key Aspects:
1. Target Audience: Identifying the target market and tailoring positioning accordingly.
2. Differentiation: Highlighting unique features or benefits to distinguish from competitors.
3. Value Proposition: Communicating the value a product offers to meet consumer needs.
4. Consistency: Maintaining a consistent image across marketing channels.
Importance: Effective product positioning:
 Attracts the target audience.

 Enhances competitiveness.
 Guides marketing and communication strategies.
(c) Cost-Based Pricing:
Definition: Cost-based pricing involves setting prices based on the production cost plus a
markup.
Steps:
1. Calculate Cost: Determine production and associated costs.

2. Markup: Add a desired profit margin.

3. Set Price: Establish the final selling price.
Advantages:
 Simplicity and ease of calculation.

 Ensures costs are covered.
Disadvantages:
 Ignores market demand.

 May not reflect perceived value.
 Limited flexibility in dynamic markets.
(d) Trade Discounts and Allowances:
Trade Discounts:
 Discounts offered by manufacturers to channel partners, such as wholesalers and retailers.

 Encourage bulk purchases and strengthen relationships.
Trade Allowances:
 Financial incentives provided to retailers for promotional activities or to cover marketing costs.
 Include promotional allowances and slotting allowances.
Purpose:
 Stimulate sales.
 Reward loyalty.
 Support marketing efforts.
Benefits:
 Boosts sales volume.

 Enhances retailer cooperation.
 Facilitates product visibility.
Considerations:
 Must align with overall pricing strategy.

 Should be monitored to ensure effectiveness.
6. Explain various channels of distribution applicable in a large sized business

organization. How do the channels of distribution add value to marketing of goods ?
Channels of Distribution in Large-Sized Business Organizations:
Channels of distribution, also known as marketing channels, refer to the pathways or routes
through which goods and services move from producers to consumers. In large-sized business
organizations, managing an effective distribution network is crucial for reaching a wider market
and ensuring efficient delivery of products. Here are various channels of distribution applicable in
large-sized business organizations:
1. Direct Sales:
 Description: Large businesses may engage in direct sales by selling products directly to
consumers through company-owned stores, flagship outlets, or online platforms.
 Advantages: Direct control over the sales process, brand representation, and customer
experience.
2. Retailers:
 Description: Products are sold through retail partners, which may include chain stores,
department stores, and specialty retailers.
 Advantages: Increased market coverage, leveraging the existing customer base of retail
partners.
3. Wholesalers/Distributors:
 Description: Goods are sold in bulk quantities to wholesalers or distributors who, in turn,
supply them to retailers.
 Advantages: Efficient distribution to a wide network of retailers, reducing the burden on
the manufacturer.
4. Franchise Networks:
 Description: Large businesses may establish a network of franchisees who operate under
the brand name and sell the company's products.
 Advantages: Expansion without heavy capital investment, leveraging local entrepreneurs.
5. E-commerce and Online Platforms:
 Description: Utilizing online channels, such as the company's official website or third-
party e-commerce platforms, for direct-to-consumer sales.
 Advantages: Global reach, 24/7 accessibility, and the ability to gather valuable customer
data.
6. Agents and Brokers:
 Description: Employing agents or brokers who act as intermediaries between the
manufacturer and retailers or other businesses.
 Advantages: Outsourcing sales activities, especially in international markets, to experts
with market knowledge.
7. Industrial Sales:
 Description: Targeting business customers through a dedicated sales force or business-to-
business (B2B) channels.
 Advantages: Focusing on meeting the specific needs of industrial clients and establishing
long-term relationships.
8. Strategic Alliances and Partnerships:
 Description: Forming strategic alliances or partnerships with other businesses to jointly
distribute products.

 Advantages: Leveraging the strengths of each partner to enhance distribution efficiency

and market presence.
9. Supply Chain Management:
 Description: Managing the entire supply chain, including suppliers, manufacturers,
distributors, and retailers, to streamline the flow of goods.
 Advantages: Integration of processes, reduced lead times, and enhanced overall efficiency.
How Channels of Distribution Add Value to Marketing of Goods:
1. Wider Market Reach:

 Channels help products reach a broader audience by utilizing the extensive networks and
coverage of retailers, wholesalers, and online platforms.
2. Efficient Delivery and Logistics:
 Distribution channels optimize the logistics and supply chain, ensuring timely and cost-
effective delivery of goods to end consumers.
3. Customer Convenience:
 By diversifying distribution channels, businesses can offer customers multiple options for
purchasing, catering to different preferences and lifestyles.
4. Risk Mitigation:
 A well-diversified distribution network reduces dependency on a single channel,
minimizing the impact of disruptions, and enhancing resilience.
5. Market Penetration:
 Channels facilitate market penetration by tapping into different geographic regions,
demographics, and customer segments, maximizing market share.
6. Brand Representation:
 Distribution channels serve as touchpoints where the brand is represented, ensuring
consistent messaging, branding, and customer experiences.
7. Market Feedback and Insights:
 Interactions within distribution channels provide valuable feedback and insights on
consumer preferences, market trends, and competitor activities.
8. Cost Efficiency:
 Channels contribute to cost efficiency by optimizing the distribution process, reducing
excess inventory, and minimizing transportation costs.
9. Flexibility and Adaptability:
 Businesses can adapt their distribution strategies to changing market conditions,
introducing flexibility and responsiveness to consumer demands.
In conclusion, channels of distribution play a pivotal role in large-sized business organizations,

enhancing the overall effectiveness of marketing strategies and ensuring that products reach
consumers in a timely, efficient, and customer-friendly manner.
7. What is Marketing Communication ? Explain various types of marketing

communication with examples.
Marketing Communication:
Marketing communication, often referred to as marcom or integrated marketing communication

(IMC), encompasses the strategies and tactics used by businesses to convey messages about their
products or services to target audiences. It involves the coordination and integration of various
promotional elements to create a cohesive and impactful communication plan.
Various Types of Marketing Communication:
1. Advertising:
 Definition: Paid, non-personal communication through various media channels to
promote products or services.
 Example: Coca-Cola's television commercials during major sports events, emphasizing
brand image and lifestyle.
2. Public Relations (PR):
 Definition: Building and maintaining positive relationships with the public, media, and
other stakeholders to enhance a brand's reputation.
 Example: Apple addressing media inquiries and releasing press statements to manage
public perception during product launches.
3. Sales Promotion:
 Definition: Short-term incentives or discounts aimed at encouraging immediate purchase
or customer action.
 Example: Buy-one-get-one-free promotions or limited-time discounts offered by retail
stores.
4. Personal Selling:
 Definition: Direct, one-on-one interaction between a sales representative and a potential
customer to persuade them to make a purchase.
 Example: Real estate agents providing personalized property tours and negotiations.
5. Direct Marketing:
 Definition: Direct communication with individual customers through channels like emails,
direct mail, or telemarketing.
 Example: Sending personalized email campaigns with product recommendations based on
customer preferences.
6. Digital Marketing:
 Definition: Utilizing online platforms, including social media, search engines, and
websites, to reach and engage target audiences.
 Example: Facebook advertising campaigns targeting specific demographics with tailored
content.
7. Content Marketing:
 Definition: Creating and distributing valuable, relevant content to attract and retain a
clearly defined audience.
 Example: Blog posts, articles, or videos providing information and solving problems
related to a brand's industry.
8. Event Marketing:
 Definition: Promoting products or services through in-person or virtual events, such as
trade shows, conferences, or webinars.
 Example: Nike organizing sports events and sponsoring marathons to showcase and
promote its athletic products.
9. Influencer Marketing:
 Definition: Collaborating with influencers or individuals with a significant following to
promote products or services.
 Example: Fashion brands partnering with Instagram influencers to showcase and endorse
their clothing lines.
10. Guerrilla Marketing:
 Definition: Unconventional and creative marketing strategies that rely on surprise and
interaction to engage the audience.
 Example: Flash mobs or street performances to create buzz around a brand or product in
unexpected locations.
11. Sponsorship:
 Definition: Supporting events, organizations, or causes financially in exchange for
visibility and association with the sponsored entity.
 Example: Adidas sponsoring major sports teams and events to enhance brand visibility and
align with a sports-oriented image.
12. Word of Mouth (WOM) Marketing:
 Definition: Encouraging customers to share positive experiences and recommendations
with others.
 Example: Yelp reviews, social media testimonials, or referral programs that leverage
satisfied customers as brand advocates.
In conclusion, an effective marketing communication strategy combines multiple channels and

approaches to create a comprehensive and consistent message that resonates with the target
audience. The choice of communication methods depends on the nature of the product, the
characteristics of the target market, and the overall marketing objectives.
8. (a) Why relationship marketing is gaining significance these days ? Discuss.
Significance of Relationship Marketing:
Relationship marketing has gained immense significance in contemporary business practices.

Several factors contribute to its prominence in today's dynamic and competitive business
environment:
1. Customer Retention:
 Importance: In an era of fierce competition, retaining existing customers is more cost-
effective than acquiring new ones.
 Example: Subscription-based services like Netflix focus on building long-term relationships
with subscribers to ensure continued loyalty and retention.
2. Customer Loyalty:
 Importance: Building strong relationships fosters customer loyalty, leading to repeat
business and positive word-of-mouth.
 Example: Airlines offering loyalty programs with exclusive benefits to frequent flyers
encourage customer allegiance.
3. Brand Image Enhancement:
 Importance: Positive relationships contribute to a favorable brand image, attracting new

customers and creating brand advocates.
 Example: Companies like Apple excel in relationship marketing, creating a dedicated
customer base through innovative products and personalized services.
4. Competitive Advantage:
 Importance: Establishing deep connections with customers provides a unique competitive
advantage in the market.
 Example: Local businesses that engage in personalized interactions and offer customized
services can stand out against larger competitors.
5. Reduced Marketing Costs:
 Importance: Sustained relationships result in lower marketing costs as loyal customers
require less promotional efforts.
 Example: Online retailers often use targeted email campaigns to engage with existing
customers, reducing the need for extensive advertising.
6. Personalization and Customization:
 Importance: Relationship marketing enables personalized and customized experiences,
meeting individual customer preferences.
 Example: E-commerce platforms use algorithms to recommend products based on
customers' past purchases, enhancing the shopping experience.
7. Feedback and Improvement:
 Importance: Continuous interaction with customers facilitates feedback, helping businesses
understand preferences and areas for improvement.
 Example: Social media platforms serve as channels for direct customer feedback, enabling
businesses to make real-time adjustments.
8. Long-Term Profitability:
 Importance: Relationship marketing focuses on long-term profitability by nurturing
enduring connections with customers.
 Example: Subscription-based software companies prioritize customer success and support
to ensure prolonged subscriptions and customer satisfaction.
9. Cross-Selling and Upselling:
 Importance: Understanding customer needs allows businesses to effectively cross-sell and
upsell additional products or services.
 Example: E-commerce websites use algorithms to suggest complementary products during
the checkout process, increasing the average transaction value.
10. Adaptability to Change:
 Importance: Strong relationships create a foundation for adapting to market changes and
evolving customer expectations.
 Example: Traditional brick-and-mortar stores adopting online platforms and providing
seamless omnichannel experiences to meet changing consumer behavior.
In conclusion, relationship marketing has become a strategic imperative for businesses aiming for
sustained growth, customer loyalty, and a resilient market position. The ability to build and
nurture relationships is crucial in an era where customers seek not just products or services but
meaningful and personalized interactions with the brands they choose.

(b) What are different types of relationship building strategies ? Discuss with examples.
Relationship Building Strategies:
Building strong relationships is essential in both personal and professional contexts. Here are
different types of relationship-building strategies along with examples:
1. Communication and Active Listening:

 Strategy: Maintain open and clear communication. Actively listen to others, demonstrating
empathy and understanding.
 Example: In a business setting, a manager actively listens to employee concerns during
team meetings, fostering a culture of open communication.
2. Trust Building:
 Strategy: Establish trust through transparency, consistency, and reliability in actions and
promises.
 Example: A salesperson consistently delivers products on time, gaining the trust of clients,
who then become repeat customers.
3. Networking:
 Strategy: Expand professional networks by attending events, conferences, and connecting
on social platforms.
 Example: A professional attends industry conferences, fostering relationships with peers
and potential collaborators.
4. Reciprocity:
 Strategy: Be willing to give and receive assistance, creating a sense of mutual support.
 Example: Two colleagues share knowledge and resources, creating a reciprocal relationship
that benefits both in their respective projects.
5. Empathy and Understanding:
 Strategy: Understand and acknowledge others' perspectives, demonstrating empathy in
both personal and professional interactions.
 Example: A manager shows empathy towards an employee experiencing personal
challenges, offering support and flexibility.
6. Collaboration:
 Strategy: Encourage teamwork and collaboration to achieve common goals.
 Example: Team members collaborate on a project, pooling their skills and expertise to
produce a high-quality outcome.
7. Conflict Resolution:
 Strategy: Address conflicts promptly and constructively to maintain healthy relationships.
 Example: A team leader facilitates a resolution meeting to address conflicts among team
members, fostering a positive team dynamic.
8. Recognition and Appreciation:
 Strategy: Acknowledge and appreciate the efforts and contributions of others.
 Example: A manager publicly recognizes an employee's exceptional performance, boosting
morale and reinforcing a positive working relationship.
9. Flexibility:
 Strategy: Be adaptable and open to change, adjusting to others' needs and preferences.

 Example: A team leader accommodates different working styles within the team,
promoting a flexible and inclusive environment.
10. Shared Values and Goals:
 Strategy: Identify and align shared values and goals to create a sense of purpose and unity.
 Example: A group of entrepreneurs collaborates on a project with a shared vision of
creating positive social impact through their business initiatives.
Effective relationship-building strategies require a combination of interpersonal skills, genuine

intentions, and a commitment to fostering positive connections.
9. What is pricing ? Explain different methods of pricing with examples.
Pricing: Pricing is the process of determining the monetary value assigned to a product or service,
reflecting the perceived worth by customers in the marketplace. It plays a crucial role in a business
strategy, influencing profitability, market positioning, and customer perception.
Methods of Pricing:
1. Cost-Plus Pricing:
 Definition: Cost-plus pricing involves setting a price by adding a markup percentage to
the cost of production.
 Formula: Price = Cost + (Cost x Markup Percentage)
 Example: If the cost of manufacturing a product is $50, and the markup is 20%, the selling
price would be $60.
2. Market-Oriented Pricing:
 Definition: This approach determines the price based on market conditions, demand, and
competition.
 Example: If similar products in the market are priced at $70, a company might set its price
close to or slightly below this figure to remain competitive.
3. Penetration Pricing:
 Definition: Penetration pricing involves setting a low initial price to gain a significant
market share quickly.
 Example: A new entrant in the smartphone market may initially price its product lower
than established competitors to attract customers.
4. Skimming Pricing:
 Definition: Skimming pricing sets a high initial price for a unique or innovative product
before gradually reducing it over time.
 Example: Apple often adopts skimming pricing for its new iPhone models, initially
targeting early adopters willing to pay a premium.
5. Value-Based Pricing:
 Definition: This method sets prices based on the perceived value of the product to the
customer.
 Example: Luxury brands like Rolex use value-based pricing, where the high-quality and
exclusivity of the product justify a premium price.
6. Dynamic Pricing:
 Definition: Dynamic pricing adjusts prices in real-time based on factors such as demand,
time, and customer behavior.
 Example: Airlines may increase ticket prices during peak travel times and reduce them
during off-peak periods.
Differences Between Fixed Budgets and Flexible Budgets:
Fixed Budgets:
1. Definition: Fixed budgets are financial plans that remain unchanged regardless of variations in
actual sales or production levels.
2. Applicability: Suitable for stable business environments with predictable sales and production
patterns.
3. Characteristics: Fixed budgets are static and set at the beginning of the budget period, not
adapting to changes in activity levels.
4. Flexibility: Lacks flexibility, making it less responsive to dynamic business conditions.
Flexible Budgets:
1. Definition: Flexible budgets adjust to changes in activity levels, allowing for modifications in
revenue and expense projections.
2. Applicability: Suited for businesses with variable production and sales volumes, reacting to
fluctuations in the market.
3. Characteristics: Flexible budgets are dynamic, accommodating variations in sales, production,
and other key performance indicators.
4. Flexibility: Offers greater adaptability, making it a more realistic tool for managing uncertainties
in business operations.
Steps in Making a Sound Budgeting System:
1. Define Objectives: Clearly outline the financial and strategic objectives the budget aims to
achieve.
2. Gather Information: Collect relevant data on historical performance, market conditions, and
business goals.
3. Involve Key Stakeholders: Engage relevant departments and key personnel in the budgeting
process to ensure diverse perspectives.
4. Set Realistic Targets: Establish achievable and realistic targets based on market analysis, cost
structures, and revenue projections.
5. Allocate Resources: Allocate resources efficiently by prioritizing areas critical to achieving
organizational goals.
6. Monitor and Adjust: Regularly monitor actual performance against budgeted figures and make
adjustments as needed to align with changing circumstances.
7. Review and Learn: Conduct periodic reviews to evaluate the effectiveness of the budgeting
system, learn from variances, and improve future planning.

A sound budgeting system involves a strategic and dynamic approach, considering both internal
and external factors to guide a company toward its financial objectives.
Q. Write a note on the Micro and Macro Environment of Marketing. Explain their
influence on marketing process.
Micro and macro environments are two essential components of the marketing environment that
influence the marketing process of a company. Let's take a closer look at each of them and how
they impact marketing.
1. Micro Environment: The micro environment refers to the internal factors and immediate external
forces that directly affect a company's marketing activities. It consists of stakeholders and
elements that have a close and immediate impact on the organization. The key components of the
micro environment include:
a) Customers: Customers are the foundation of any business. Their needs, preferences, and buying
behavior shape marketing strategies. Understanding customer demographics, psychographics,
and buying patterns is crucial for effective marketing.
b) Suppliers: Suppliers provide the necessary inputs such as raw materials, components, and
services to the organization. Their reliability, availability, and pricing directly impact the
marketing process, particularly in terms of product quality, pricing, and delivery.
c) Competitors: Competitors are other organizations that offer similar products or services to the
same target market. Studying competitors helps in identifying market trends, positioning
strategies, pricing decisions, and promotional activities to gain a competitive advantage.
d) Intermediaries: Intermediaries include distributors, wholesalers, retailers, and other channels

that help in distributing and selling products to customers. Collaborating and maintaining healthy
relationships with intermediaries are crucial for efficient marketing and ensuring products reach
the intended consumers.
e) Publics: Publics refer to any group or individual that has an interest or impact on the company's
ability to achieve its objectives. This can include the media, government bodies, financial
institutions, and consumer advocacy groups. Public opinion, perception, and reactions can
influence marketing strategies and brand reputation.
f) Internal Factors: These factors include the organization's employees, culture, mission, vision,
and resources. Internal factors influence marketing decisions such as branding, product
development, pricing strategies, and promotional activities.

The micro environment influences the marketing process by shaping the organization's ability to
understand, reach, and satisfy customer needs. It helps in identifying opportunities, developing
effective marketing strategies, and building strong relationships with stakeholders.
2. Macro Environment: The macro environment consists of broader societal forces and factors that
impact the entire marketing environment. These factors are beyond the control of the organization
and include:
a) Demographic Factors: Demographics such as age, gender, income, education, and population
size have a significant impact on consumer behavior, market segmentation, and targeting
strategies. Understanding demographic trends helps in developing appropriate marketing plans.
b) Economic Factors: Economic conditions, including GDP, inflation, employment rates, interest
rates, and consumer confidence, influence consumer spending power and purchasing behavior.
Organizations need to adapt their marketing strategies accordingly.
c) Technological Factors: Technological advancements and innovations influence product

development, distribution channels, communication methods, and customer expectations.
Keeping up with technological changes is essential to remain competitive.
d) Political and Legal Factors: Government regulations, policies, and political stability affect
marketing operations. Legal factors include consumer protection laws, intellectual property rights,
product safety standards, and advertising regulations.
e) Socio-cultural Factors: Socio-cultural factors encompass social values, attitudes, beliefs,

lifestyles, and cultural norms that shape consumer behavior and preferences. Understanding
cultural differences is crucial for successful marketing in diverse markets.
f) Environmental Factors: Growing concerns about sustainability, climate change, and

environmental conservation influence consumer preferences and demand for eco-friendly
products. Organizations need to adapt their marketing strategies to reflect environmental
consciousness.
The macro environment influences the marketing process by providing a broader context and
shaping the opportunities and challenges faced by organizations. It helps in identifying market
trends, adapting marketing strategies, and developing sustainable and socially responsible
initiatives.
In conclusion, both the micro and macro environments have a profound impact on the marketing
process. While the micro environment focuses on immediate stakeholders and internal factors, the
macro environment considers broader societal forces. Understanding and adapting to these
environments is crucial for organizations to effectively identify, target, and satisfy customer needs
while navigating the dynamic market conditions.

Q. What is Marketing Research ? Explain the steps involved in the marketing research with
examples.
Marketing research is the systematic process of collecting, analyzing, and interpreting relevant
data and information to make informed marketing decisions. It involves gathering insights about
customers, competitors, market trends, and other factors that impact a company's marketing
strategies and tactics. The primary goal of marketing research is to reduce uncertainty and provide
actionable information for effective decision-making.
The steps involved in the marketing research process are as follows:
1. Define the Problem and Objectives: The first step is to clearly define the research problem or
marketing issue and establish research objectives. This involves understanding what information
is needed, identifying gaps in knowledge, and setting specific goals to address those gaps. For
example, a company may want to understand the reasons behind declining sales for a particular
product.
2. Design the Research Plan: Once the problem is defined, the next step is to design a research plan.
This involves determining the research approach, selecting appropriate research methods, and
defining the target audience or sample. The research plan should outline the specific research
questions, data collection methods (such as surveys, interviews, focus groups, or observation), and
the timeframe for data collection. For example, a company may decide to conduct a customer
satisfaction survey to gather feedback on product quality and service.
3. Collect Data: In this step, data is collected using the chosen research methods. Data can be
collected through primary research (gathering new data specifically for the research purpose) or
secondary research (using existing data from sources like industry reports, government
publications, or databases). Primary data collection methods can include surveys, interviews,
observations, or experiments. For example, a company may conduct in-depth interviews with
target customers to understand their preferences and buying behavior.
4. Analyze the Data: Once the data is collected, it needs to be analyzed to derive meaningful insights.
Data analysis involves organizing, cleaning, and examining the data using statistical techniques or
qualitative methods. Quantitative data can be analyzed using tools like statistical software, while
qualitative data may involve coding and thematic analysis. The goal is to identify patterns, trends,
relationships, and significant findings that can address the research objectives. For example,
analyzing survey responses can reveal customer satisfaction levels, purchase intent, or brand
perceptions.
5. Interpret the Findings: After analyzing the data, the next step is to interpret the findings and draw
conclusions. The insights gained from the data analysis help in understanding customer needs,
market trends, competitive positioning, or any other relevant aspects. It is important to connect
the research findings to the initial research problem and objectives. For example, the research may
uncover that the decline in sales is due to a pricing issue rather than product quality.
6. Report and Present the Results: The final step is to report the research findings in a comprehensive
and understandable manner. A research report is prepared, which includes an executive
summary, methodology, key findings, conclusions, and recommendations. The report should be
tailored to the target audience, such as marketing managers, executives, or stakeholders.
Presentations may also be made to effectively communicate the results and implications. For

example, a research report may suggest specific pricing strategies or marketing tactics to address
the decline in sales.
By following these steps, marketing research provides valuable insights that inform marketing
decisions, product development, market segmentation, positioning, pricing, and promotional
strategies. It helps companies make informed choices and minimize risks while improving their
overall marketing effectiveness.
Q. Explain the Market Targeting Process. Discuss the market targeting strategies with
examples.
The market targeting process is the strategic process of evaluating and selecting specific target
market segments for a company's products or services. It involves identifying and assessing
different market segments based on their attractiveness and compatibility with the organization's
resources and objectives. The market targeting process helps companies allocate their marketing
resources effectively and tailor their marketing strategies to the needs and preferences of the
chosen target segments.
The market targeting process typically involves the following steps:
1. Identify Market Segments: The first step is to identify potential market segments by dividing the
overall market into distinct groups of consumers with similar characteristics, needs, and
preferences. Segments can be based on various factors such as demographics, psychographics,
behavior, or geographic location. For example, a sportswear company may identify segments such
as young athletes, fitness enthusiasts, or outdoor adventurers.
2. Evaluate Segment Attractiveness: Once the segments are identified, the next step is to assess the
attractiveness of each segment. This involves analyzing factors such as the size and growth
potential of the segment, the competitive landscape, the purchasing power of the consumers, and
the compatibility with the company's capabilities and resources. For example, a technology
company may evaluate the growth potential and profitability of segments interested in wearable
devices.
3. Select Target Segments: Based on the evaluation of segment attractiveness, the company selects
one or more target segments to focus its marketing efforts on. The chosen segments should align
with the company's objectives, resources, and competitive advantages. Target segments should be
large enough to be profitable and responsive to the company's marketing strategies. For example,
an organic food company may choose to target health-conscious consumers who are willing to
pay a premium for organic products.
4. Develop Segment Profiles: Once the target segments are identified, the company develops detailed
segment profiles to understand the characteristics, needs, and behaviors of the consumers within
each segment. This includes demographic information, lifestyle factors, purchase behaviors,
attitudes, and preferences. Segment profiles help in creating targeted marketing messages and
designing products or services that cater to the specific needs of each segment. For example, a
luxury car manufacturer may develop a segment profile for high-income professionals who value
luxury, performance, and status.

Market targeting strategies:
a) Undifferentiated Marketing: Undifferentiated marketing, also known as mass marketing,

involves targeting the entire market with a single marketing mix. This strategy assumes that all
consumers have similar needs and preferences and can be satisfied with a standardized product or
service. For example, basic household products like salt or sugar are marketed to the entire
population without differentiation.
b) Differentiated Marketing: Differentiated marketing, also known as segmented marketing,

involves targeting multiple market segments with different marketing strategies and offerings.
Each segment is treated as a separate target market with specific marketing mixes tailored to their
needs and preferences. For example, automobile companies often target different segments with
specific models designed for families, sports enthusiasts, or luxury buyers.
c) Concentrated Marketing: Concentrated marketing, also known as niche marketing, involves

focusing on a single, highly specialized market segment. This strategy targets a small, well-
defined segment with unique needs and offers tailored products or services to fulfill those needs
effectively. For example, a company may specialize in producing premium pet food for a specific
breed of dogs.
d) Micromarketing: Micromarketing involves tailoring marketing efforts to suit the individual

preferences and needs of customers. It can be achieved through one-to-one marketing or local
marketing. One-to-one marketing aims to develop personalized marketing communications and
offerings for individual customers based on their specific characteristics and preferences. Local
marketing targets customers in specific geographic locations with customized marketing
strategies. For example, personalized email marketing campaigns or local restaurant
advertisements fall under micromarketing.
Companies may choose to employ a combination of these targeting strategies based on their
product portfolio, resources, and market dynamics. The selection of the most appropriate
targeting strategy depends on the company's goals, competitive environment, and the
characteristics of the target market segments.
Q. Discuss the meaning and importance of market segmentation. What bases would you
considers for segmenting market of fast moving consumer goods and why ?
Market segmentation refers to the process of dividing a market into distinct groups of consumers
who share similar characteristics, needs, and preferences. It involves identifying homogeneous
subgroups within a broader market to enable targeted marketing efforts and better meet the
specific needs of different customer segments. Market segmentation is essential for effective
marketing strategies as it allows companies to understand and serve their customers more
efficiently.
Importance of Market Segmentation:

1. Customer Understanding: Segmentation helps companies gain a deeper understanding of their

customers by identifying their unique characteristics, behaviors, and preferences. This
understanding enables the development of products, services, and marketing messages that
resonate with specific customer segments.
2. Targeted Marketing: Segmenting the market allows companies to focus their marketing efforts
and resources on the most relevant customer groups. By tailoring marketing strategies and
communication to specific segments, companies can achieve higher marketing effectiveness and
return on investment.
3. Differentiation: Market segmentation helps companies identify opportunities for product
differentiation. By identifying unique customer needs within different segments, companies can
develop specialized products or services that stand out from competitors and meet those specific
needs more effectively.
4. Market Opportunities: Segmentation allows companies to identify untapped market opportunities
and niche segments that may have specific, unmet needs. By catering to these segments,
companies can gain a competitive advantage and capture a greater share of the market.
5. Resource Allocation: Market segmentation helps companies allocate their resources more
efficiently. By focusing on the most attractive and profitable segments, companies can optimize
their marketing efforts, product development, and distribution strategies.
Bases for Segmenting the Market of Fast Moving Consumer Goods (FMCG):
1. Demographic Segmentation: Demographic factors such as age, gender, income, education, and
family size are commonly used in segmenting FMCG markets. For example, a company might
target different age groups with different variations of a product or market specific products to
households with children.
2. Psychographic Segmentation: Psychographic factors consider consumers' attitudes, values,
interests, and lifestyles. FMCG companies may segment based on consumer preferences for
convenience, health-consciousness, eco-friendliness, or specific lifestyles.
3. Behavioral Segmentation: Behavioral segmentation focuses on consumer behaviors and purchase
patterns. It includes variables such as usage rates, loyalty, benefits sought, and occasions of
product consumption. For FMCG, this could involve segmenting consumers based on their
frequency of purchase, brand loyalty, or specific usage occasions (e.g., snacks for on-the-go or
healthy snacks for fitness enthusiasts).
4. Geographic Segmentation: Geographic segmentation divides the market based on geographical
boundaries, such as regions, countries, cities, or neighborhoods. FMCG companies may target
specific regions based on cultural preferences, climate, or local preferences for flavors and
ingredients.
5. Benefit Segmentation: Benefit segmentation groups consumers based on the specific benefits they
seek from a product or service. In the case of FMCG, this could involve segmenting consumers
based on their desired product attributes, such as taste, convenience, price sensitivity, or health
benefits.
It is important for FMCG companies to consider a combination of these segmentation bases, as the
consumer behavior and preferences in the FMCG sector can vary significantly across different
markets and product categories. Conducting thorough market research and analysis is crucial to
identify the most relevant and effective segmentation bases for a specific FMCG market.
Q. What steps are involved in New Product Development Process ? Explain them with
examples.
The new product development process involves a series of steps and activities that a company
follows to conceptualize, design, develop, and launch a new product or service into the market.
While the specific steps and their sequence may vary across organizations, the general new
product development process consists of the following stages:
1. Idea Generation: In this initial stage, ideas for new products are generated through various
sources such as customer feedback, market research, internal brainstorming sessions, competitor
analysis, technological advancements, or collaboration with external partners. For example, a
technology company may gather input from customer surveys and industry trends to identify
opportunities for a new smartphone feature.
2. Idea Screening: The generated ideas are evaluated and screened to determine their feasibility,
market potential, and alignment with the company's objectives and resources. Screening involves
assessing factors such as market size, competitive landscape, technical feasibility, profitability, and
fit with the company's capabilities. Ideas that do not meet the criteria are eliminated to focus on
the most promising ones. For example, a food company may evaluate various flavor concepts for a
new snack and choose those that align with consumer preferences and the company's production
capabilities.
3. Concept Development and Testing: Selected ideas are further developed into product concepts.
This involves creating detailed product concepts, including features, benefits, and target market
considerations. Concept testing is conducted to gather feedback from potential customers about
their perceptions, preferences, and purchase intent regarding the proposed product concept.
Feedback helps refine the concept and identify potential issues or improvements. For example, a
car manufacturer may create 3D renderings and conduct focus groups to gauge consumer
reactions to the design, features, and pricing of a new vehicle.
4. Business Analysis: In this stage, a thorough business analysis is conducted to assess the financial
viability and profitability of the new product. Factors such as production costs, pricing strategies,
sales forecasts, market demand, and potential return on investment are analyzed. This analysis
helps in determining whether the new product is financially feasible and aligns with the
company's overall business goals. For example, an electronics company may analyze production
costs, pricing, and projected sales volumes to determine the profitability of launching a new smart
home device.
5. Product Development: Once the concept and business viability are confirmed, the product
development stage begins. This involves creating a physical prototype or developing the service
offering, finalizing product specifications, conducting engineering tests, and refining the design.
Manufacturing processes are established, and supply chain considerations are addressed. For
example, a cosmetic company may develop samples of a new skincare product, conduct testing for
efficacy and safety, and refine the formula and packaging based on feedback.
6. Market Testing: Before full-scale launch, the product is introduced to a limited market segment or
geographic area for testing. Market testing helps gather real-world feedback on product
performance, customer acceptance, pricing, marketing messaging, and distribution channels. This
stage may involve offering the product in selected stores or through a pilot program. The feedback

collected is used to fine-tune the product and marketing strategies. For example, a software
company may release a beta version of a new application to a group of early adopters to gather
feedback on usability and identify potential bugs or improvements.
7. Commercialization: The final stage involves the full-scale launch of the new product into the
market. This includes manufacturing, marketing, distribution, and sales activities. Marketing
strategies and campaigns are executed to create awareness, generate demand, and drive sales.
Distribution channels are established, and the product is made available to customers. For
example, a clothing company may launch a new fashion line by promoting it through advertising
campaigns, online and offline sales channels, and collaborations with influencers.
It is important to note that the new product development process is iterative, and feedback from
each stage is used to refine and improve the product. Successful product development requires
cross-functional collaboration, market research, strategic decision-making, and continuous
evaluation throughout the process.
Q. What decisions will you take as a brand manager for costly durable products ? How is
labelling useful in this context ?
As a brand manager for costly durable products, there are several key decisions that you would
need to make to effectively position and market the products. Some of these decisions include:
1. Target Market Selection: Identify and define the target market segment(s) that are most likely to
purchase the costly durable products. This involves analyzing demographics, psychographics, and
behavior patterns of potential customers. For example, if you are marketing luxury watches, your
target market might consist of affluent individuals who value craftsmanship and exclusivity.
2. Product Positioning: Determine how to position the costly durable products in the market to
differentiate them from competitors and create a unique value proposition. Highlight the features,
benefits, and superior quality of the products. Emphasize factors such as durability, performance,
aesthetics, and long-term value. Position the products as high-end, premium, or luxury options.
For example, a brand manager for high-end audio equipment may position the products as
offering superior sound quality, cutting-edge technology, and luxurious design.
3. Pricing Strategy: Develop a pricing strategy that reflects the premium nature of the products while
considering market demand, competition, production costs, and perceived value. Pricing should
be set to generate appropriate profit margins while maintaining exclusivity and perceived quality.
For example, luxury car brands price their vehicles at a premium level to maintain an image of
exclusivity and superior craftsmanship.
4. Distribution Channels: Determine the most appropriate distribution channels to reach the target
market effectively. Consider factors such as the buying behavior of the target customers,
geographical reach, and the need for personalized customer service. Distribution channels for
costly durable products may include exclusive dealerships, specialized retail stores, online
platforms, or direct sales. For example, high-end furniture brands often establish flagship stores in
premium locations to showcase their products and provide a personalized shopping experience.
5. Promotional Strategies: Develop marketing and promotional strategies that effectively
communicate the value proposition of the costly durable products to the target market. Utilize
marketing channels that resonate with the target audience, such as print media, online

advertising, social media platforms, and luxury lifestyle publications. Focus on creating an
aspirational image, utilizing testimonials or endorsements from influential personalities, and
showcasing the product's unique features and benefits.
Now, let's discuss the role of labeling in this context:
Labelling is highly useful for costly durable products as it serves several purposes:
1. Product Information: Labels provide essential information about the product, including its
specifications, features, warranties, care instructions, and safety precautions. This helps potential
customers make informed purchasing decisions and understand the unique attributes of the costly
durable product.
2. Brand Identity: Labels play a crucial role in establishing and reinforcing brand identity. They carry
the brand logo, name, and distinctive visual elements that create brand recognition and recall.
Consistent and visually appealing labeling helps differentiate the product from competitors and
builds brand equity.
3. Perceived Value: Well-designed labels with high-quality materials and sophisticated aesthetics
contribute to the perceived value of the product. They convey a sense of luxury, craftsmanship,
and attention to detail, enhancing the overall premium positioning of the costly durable product.
4. Authenticity and Anti-Counterfeiting: Labels can incorporate security features or unique
identifiers to verify the authenticity of the product and protect against counterfeiting. This is
particularly important for costly durable products, as they are often targeted by counterfeiters due
to their high value.
5. Regulatory Compliance: Labels ensure compliance with legal and regulatory requirements,
including safety standards, environmental certifications, and country-specific labeling regulations.
Compliance with such regulations enhances customer trust and confidence in the product.
In summary, as a brand manager for costly durable products, you would make decisions related
to target market selection, product positioning, pricing strategy, distribution channels, and
promotional strategies. Additionally, you would leverage labeling to provide product
information, establish brand identity, enhance perceived value, protect against counterfeiting, and
ensure regulatory compliance.
Q. (a) Explain the methods used in pricing a new product with example.
(b) Discuss the difference between fixed pricing and flexible pricing.
(a) Pricing a new product involves determining the price at which the product will be offered to
customers. Several methods can be used to set the price for a new product:
1. Cost-Based Pricing: This method involves calculating the production and marketing costs
associated with the product and adding a desired profit margin. The price is set based on the total
cost per unit, ensuring that the company can cover expenses and achieve profitability. For
example, a company manufacturing smartphones may calculate the cost of materials, labor,
research and development, marketing, and distribution, and add a profit margin to determine the
price at which the product will be sold.
2. Market-Based Pricing: This approach involves setting the price based on market factors such as
customer demand, competitor prices, and perceived value. The price is determined by considering
what customers are willing to pay for the product and how it compares to similar products in the
market. For example, a company introducing a new luxury watch may research the prices of
similar watches in the market and set a price that reflects the product's unique features and brand
positioning.
3. Value-Based Pricing: This method focuses on the perceived value of the product to customers. The
price is set based on the benefits and value the product delivers to customers rather than its
production costs. Companies employing value-based pricing aim to capture a portion of the value
they create for customers. For example, a software company offering a new productivity tool may
set the price based on the time-saving benefits and increased efficiency it provides to users.
4. Skimming Pricing: Skimming pricing involves initially setting a high price for a new product
when it is introduced to the market. This strategy is commonly used for innovative or high-
demand products where early adopters are willing to pay a premium. Over time, the price is
gradually reduced to attract a wider customer base. For example, when a new gaming console is
launched, the company may initially price it higher to target enthusiastic gamers who are willing
to pay a premium, and later lower the price to attract a broader audience.
5. Penetration Pricing: Penetration pricing involves setting a low initial price for a new product to
quickly gain market share and attract customers. This strategy is often used when a company
wants to enter a competitive market or when the product has a cost advantage over existing
alternatives. Over time, the price may be increased once the product gains traction and secures a
customer base. For example, a new online streaming service may offer a discounted subscription
price during its initial launch to quickly gain subscribers and establish its presence in the market.
(b) The difference between fixed pricing and flexible pricing lies in the level of adaptability and
customization of the pricing approach:
1. Fixed Pricing: Fixed pricing refers to a pricing strategy where the price of a product or service
remains constant for all customers and under all circumstances. The price is predetermined and
does not change based on individual customer characteristics, market conditions, or specific
situations. Fixed pricing simplifies the pricing process and provides consistency. For example, a
retail store selling clothing may have fixed prices for all items on the shelves.
2. Flexible Pricing: Flexible pricing, also known as dynamic pricing or variable pricing, involves
adjusting the price based on various factors such as customer demand, market conditions,
seasonality, or individual customer characteristics. The price can change in real-time or
periodically to optimize revenue and adapt to changing market dynamics. Flexible pricing allows
companies to capture different levels of customer willingness to pay and maximize profitability.
For example, airlines often practice flexible pricing by adjusting ticket prices based on factors like
seat availability, time of booking, and demand during peak travel periods.
In summary, fixed pricing maintains a constant price for a product or service, while flexible
pricing allows for price adjustments based on market conditions, customer demand, or specific
factors to optimize revenue.
Q. (a) What are major distribution channel conflicts in industrial goods ? Explain.

(b) How are these conflicts resolved ? Discuss.
(a) Major distribution channel conflicts in industrial goods refer to conflicts or disagreements that
arise among various entities involved in the distribution of industrial goods. Some of the common
channel conflicts in this context include:
1. Conflict between Manufacturers and Distributors: This conflict can arise when manufacturers and
distributors have different objectives or when there is a lack of communication and coordination.
Manufacturers may expect distributors to meet certain sales targets or follow specific marketing
strategies, while distributors may demand better pricing or additional support from
manufacturers.
2. Conflict between Distributors: Distributors within the same market or geographical area may
compete with each other for customers, resulting in conflicts over territory, pricing, or customer
relationships. This conflict can lead to price wars, undercutting, or an overall reduction in
profitability for all parties involved.
3. Conflict between Manufacturers and End Users: In some cases, manufacturers may decide to
bypass distributors and sell directly to end users. This can create conflicts with existing
distributors who may view this as a threat to their business and exclusive territory rights.
4. Conflict over Pricing and Margins: Disagreements over pricing and profit margins can occur
between manufacturers and distributors. Manufacturers may want to maintain higher prices to
preserve the brand image and profitability, while distributors may push for lower prices to remain
competitive and maximize sales.
5. Conflict due to Channel Power Imbalances: Power imbalances can arise when one channel
member, such as a dominant manufacturer, has more control or influence over others. This can
lead to conflicts related to pricing, promotions, or allocation of resources.
(b) Resolving distribution channel conflicts in industrial goods requires effective communication,
negotiation, and collaboration among the involved parties. Some approaches to resolving these
conflicts include:
1. Open Communication and Relationship Building: Encouraging open and transparent

communication between manufacturers, distributors, and other channel members is crucial.
Regular meetings, joint planning sessions, and sharing of information can help build trust, clarify
expectations, and resolve conflicts amicably.
2. Establishing Clear Roles and Responsibilities: Clearly defining the roles and responsibilities of
each channel member can help minimize conflicts. This includes establishing guidelines for
pricing, marketing, sales targets, and customer territories to ensure that all parties understand
their obligations and expectations.
3. Incentives and Win-Win Agreements: Offering incentives and developing mutually beneficial
agreements can help align the interests of manufacturers and distributors. This can include
volume-based discounts, cooperative advertising programs, or profit-sharing arrangements that
incentivize cooperation and joint success.
4. Mediation and Conflict Resolution: In situations where conflicts escalate, involving a neutral third
party or mediator can help facilitate productive discussions and negotiations. Mediation allows all
parties to express their concerns, explore options, and reach a mutually acceptable resolution.

5. Revisiting Channel Structure: In some cases, conflicts may persist due to inherent issues with the
channel structure. Reevaluating the distribution channel and making necessary adjustments, such
as changing channel partners, modifying territories, or introducing new distribution models, can
help alleviate conflicts and improve overall channel performance.
6. Legal Agreements and Contracts: When conflicts become severe, legal agreements and contracts
can provide a framework for resolving disputes. These agreements should clearly outline rights,
obligations, and procedures for conflict resolution, ensuring that all parties have a common
understanding of their roles and responsibilities.
It is essential to proactively manage and address distribution channel conflicts as they can impact
customer satisfaction, profitability, and the overall success of the industrial goods distribution
network.
Q. (a) Discuss the objectives of Advertising.
(b) What advertising media will you select for the following products and why ?
(i) Passenger car (ii) Mobile phone (iii) Body care service (iv) Taxi service
(a) The objectives of advertising can vary depending on the specific goals of a company or brand.
However, some common objectives of advertising include:
1. Building Brand Awareness: Advertising aims to create awareness and familiarity with a brand,
product, or service among the target audience. It helps in establishing a recognizable brand
identity and making the brand known to potential customers.
2. Increasing Sales and Revenue: Advertising plays a crucial role in driving sales and generating
revenue. By promoting the features, benefits, and unique selling propositions of a product or
service, advertising can influence consumer behavior and encourage them to make a purchase.
3. Shaping Brand Perception: Advertising helps shape the perception and image of a brand in the
minds of consumers. It can communicate brand values, positioning, and personality, influencing
how consumers perceive and relate to the brand.
4. Enhancing Customer Loyalty: Advertising can contribute to building customer loyalty by
maintaining top-of-mind awareness and reinforcing positive associations with the brand. Regular
advertising helps strengthen the relationship between the brand and its existing customers,
increasing the likelihood of repeat purchases and brand advocacy.
5. Introducing New Products or Services: Advertising is an effective way to launch and introduce
new products or services to the market. It creates awareness, generates interest, and educates the
target audience about the features and benefits of the new offering.
6. Differentiating from Competitors: Advertising can help a brand stand out from competitors by
highlighting its unique selling propositions, distinctive features, or superior quality. It helps in
creating a competitive advantage and positioning the brand as the preferred choice among
consumers.
(b) The selection of advertising media for different products depends on various factors such as
target audience, budget, marketing objectives, and the nature of the product or service. Here are
some considerations for selecting advertising media for the given products:
(i) Passenger car: For advertising a passenger car, a combination of traditional and digital media
would be effective. Television commercials can reach a wide audience and showcase the car's
features, performance, and aesthetics. Print media, such as automotive magazines, can provide
detailed information for potential car buyers. Additionally, digital platforms like online display
ads, social media advertising, and video streaming platforms can target specific demographics
and reach consumers who are actively researching or considering buying a car.
(ii) Mobile phone: Advertising for mobile phones can heavily rely on digital media due to the
target audience's high online presence. Online display ads, search engine marketing, and social
media advertising can effectively reach tech-savvy consumers. In-app advertising within popular
mobile apps and mobile-specific ad formats can also be utilized. Additionally, leveraging
influencers or tech reviewers on platforms like YouTube or Instagram can help create buzz and
generate interest among the target audience.
(iii) Body care service: For advertising a body care service, a combination of print media, digital
media, and out-of-home (OOH) advertising would be suitable. Print media, such as lifestyle or
health magazines, can showcase the services and benefits. Digital media, including search engine
advertising, social media ads, and content marketing, can target specific demographics and
promote the services online. OOH advertising in areas with high foot traffic, such as billboards or
transit ads near gyms or wellness centers, can help raise awareness among the local target
audience.
(iv) Taxi service: Advertising for a taxi service would benefit from a mix of traditional and digital
media, as well as local targeting. Radio advertising can effectively reach commuters who rely on
taxis for transportation. Local television ads or sponsorships of local events can also raise
awareness among the target audience. Digital media, including search engine advertising, social
media ads, and location-based mobile ads, can help target potential customers within specific
geographic areas. Additionally, partnerships with local businesses or hotels can provide exposure
and referrals.
The selection of advertising media should align with the target audience's media consumption
habits, reach the desired geographical areas, and consider the available budget to maximize the
effectiveness of the advertising campaign.
Q. Critically examine various phases of consumerism in India. Also examine various

regulations that affect marketing decisions in India.
Consumerism in India:
Consumerism in India has evolved through various phases, influenced by economic, social, and
cultural factors. Here are the key phases of consumerism in India:

1. Pre-Independence Phase: Before independence, India was primarily an agrarian economy with
limited consumerist tendencies. The focus was on meeting basic needs, and mass consumption
was not prevalent due to poverty and limited industrialization.
2. Post-Independence Phase (1950s-1980s): After independence, India adopted a planned economy
model with an emphasis on self-sufficiency and import substitution. During this phase,
consumerism was relatively restrained, and the government played a dominant role in economic
activities. There were restrictions on the production and consumption of non-essential goods, and
foreign brands and products were limited.
3. Liberalization Phase (1991 Onwards): The liberalization of the Indian economy in 1991 marked a
significant turning point. It led to the dismantling of trade barriers, increased foreign direct
investment (FDI), and the entry of multinational corporations (MNCs). This phase witnessed a
surge in consumerism as consumers gained access to a wide range of products and services.
Rising disposable incomes, urbanization, and exposure to global trends contributed to increased
consumer spending.
4. Digital Era (2000s Onwards): The proliferation of the internet and digital technologies
transformed consumer behavior. E-commerce platforms, online marketplaces, and digital
payment systems revolutionized shopping habits. Consumers could now access products and
services from anywhere, leading to a surge in online consumerism.
5. Sustainability and Conscious Consumerism (Recent Trends): In recent years, there has been a
growing awareness of sustainability and ethical consumption. Consumers are increasingly
concerned about the environmental and social impact of their purchases. This has led to the rise of
conscious consumerism, where consumers prioritize eco-friendly and socially responsible
products.
Regulations Affecting Marketing Decisions in India:
Several regulations affect marketing decisions in India, aiming to protect consumers' interests,
maintain fair competition, and ensure product safety. Some key regulations include:
1. Consumer Protection Act, 2019: This act empowers consumers and provides for the establishment
of Consumer Protection Councils and Consumer Disputes Redressal Commissions to address
consumer grievances.
2. Food Safety and Standards Authority of India (FSSAI): FSSAI regulates food safety and
standards in India. Businesses involved in food manufacturing, packaging, and distribution must
adhere to FSSAI regulations.
3. Advertising Standards Council of India (ASCI): ASCI monitors and regulates advertising
content in India to ensure it complies with ethical standards and does not mislead consumers.
4. Competition Act, 2002: This act aims to prevent anti-competitive practices and promote fair
competition. It regulates mergers and acquisitions and prohibits unfair trade practices.
5. Intellectual Property Rights (IPR) Laws: These laws protect brands and trademarks, preventing
unauthorized use or infringement.
6. Goods and Services Tax (GST): GST is a comprehensive indirect tax applicable to the sale,
purchase, and provision of goods and services. It has streamlined taxation and impacts pricing
and supply chain decisions.
7. Packaging and Labeling Regulations: Products must comply with packaging and labeling
requirements, including information about ingredients, nutritional content, and safety warnings.
8. Data Protection Laws: Regulations like the Personal Data Protection Bill govern the collection and
use of consumer data, affecting marketing strategies and data privacy practices.
Marketers in India must navigate these regulations to ensure compliance, maintain consumer
trust, and operate ethically in the market. These regulations aim to strike a balance between
protecting consumers and fostering a competitive and transparent business environment.
Q. How do perception and learning influence the buyer behaviour ? Elaborate with examples.
Analyse the personal factors which influence buyer behaviour.
Perception and Learning in Buyer Behavior:
Perception and learning are fundamental psychological processes that significantly influence
buyer behavior. Here's how they impact consumer decisions:
1. Perception: Perception refers to the way individuals interpret and make sense of sensory
information from their environment. It plays a critical role in shaping buyer behavior because
consumers often rely on their perceptions to evaluate products and make purchasing decisions.
 Example: Consider two consumers observing the same advertisement for a smartphone.
One may perceive the phone as a status symbol, emphasizing its luxurious features, while
the other may perceive it as a practical choice, focusing on its functionality and
affordability. Their different perceptions will influence their purchase decisions.
2. Learning: Learning is the process of acquiring new information, knowledge, or behaviors through
experience. It plays a pivotal role in buyer behavior because consumers learn about products,
brands, and their features through various channels, such as advertising, word of mouth, and
personal experience.
 Example: A consumer learns about the benefits of a particular brand of organic food
products through a series of advertisements, online reviews, and recommendations from
friends. Over time, this learning process may lead the consumer to choose this brand over
others when shopping for groceries.
Personal Factors Influencing Buyer Behavior:
Personal factors encompass individual characteristics and traits that influence how consumers
make purchasing decisions. Here are some key personal factors:
1. Age and Life Stage: Age is a significant factor in buyer behavior. Different age groups have
distinct preferences and needs. For example, teenagers may prioritize trendy clothing, while
parents with young children may prioritize safety in their car purchases.
2. Occupation and Income: A person's occupation and income level impact their purchasing power
and choices. Professionals with higher incomes may opt for premium products, while those with
lower incomes may focus on affordability.
3. Lifestyle and Psychographics: Lifestyle choices, values, and interests influence consumer
behavior. For instance, a health-conscious individual may prefer organic foods and exercise
equipment, while an adventure enthusiast may invest in outdoor gear.
4. Personality and Self-Concept: An individual's personality traits, such as extroversion or

introversion, can influence their product preferences. People may also choose products that align
with their self-concept or the image they want to project.
5. Perception of Risk: Consumers assess the perceived risks associated with a purchase, including
financial risk, performance risk, and social risk. For example, a person buying a high-end luxury
car may perceive a financial risk due to the significant investment.
6. Motivation and Attitudes: Consumer motivation, needs, and attitudes play a crucial role in
shaping buying decisions. A person motivated by environmental concerns may choose eco-
friendly products, reflecting their attitudes toward sustainability.
7. Culture and Subculture: Cultural background and subcultural influences, such as ethnicity,
religion, and nationality, impact consumer preferences and behaviors. Cultural values and norms
guide product choices.
8. Family and Social Roles: Family dynamics and social roles within a household influence buying
decisions. Family members often have varying roles in the purchase process, such as influencers,
decision-makers, or users.
By understanding these personal factors, marketers can tailor their products, marketing messages,
and strategies to resonate with the specific characteristics and needs of their target consumers.
Q. Why should a company brand a product ? What are distinctions among brand identity,
brand image and brand position ? Discuss with examples.
Why Companies Should Brand Products:
Branding is a crucial strategy for companies, as it offers several advantages:
1. Product Differentiation: Branding helps products stand out in a competitive market. It allows
companies to distinguish their offerings from those of competitors, even if the products are
similar.
2. Builds Trust and Credibility: A strong brand conveys trust and reliability to consumers. People
are more likely to choose products from brands they recognize and trust.
3. Emotional Connection: Brands can create emotional connections with consumers. People often
develop loyalty to brands that align with their values, lifestyle, or aspirations.
4. Customer Loyalty: Brands encourage customer loyalty, leading to repeat purchases and brand
advocacy. Loyal customers are less likely to switch to competitors.
5. Higher Perceived Value: A well-established brand often commands higher prices. Consumers are
willing to pay more for products associated with reputable brands.
6. Market Expansion: Strong brands can expand into new markets and product categories more
easily. Consumers are more likely to try new offerings from a brand they trust.
Distinctions Among Brand Identity, Brand Image, and Brand Position:
1. Brand Identity: Brand identity is the way a company portrays itself and how it wants to be
perceived by consumers. It encompasses visual elements like logos, color schemes, and design, as
well as messaging, values, and brand personality. Brand identity is what the company controls.
 Example: Nike's brand identity is associated with athleticism, innovation, and

empowerment. Its swoosh logo, "Just Do It" slogan, and the use of athletes in marketing
convey this identity.
2. Brand Image: Brand image is how consumers perceive the brand based on their interactions and
experiences with it. It's the mental picture consumers have of the brand, and it can be influenced
by marketing efforts, product quality, customer service, and public perception.
 Example: Apple's brand image is often associated with sleek design, innovation, and user-
friendliness. This perception has been built through the consistent quality and design of
Apple products.
3. Brand Position: Brand position is the space a brand occupies in consumers' minds relative to
competitors. It defines the brand's unique value proposition and how it meets consumers' needs.
Effective brand positioning sets the brand apart from others.
 Example: Volvo positions itself as a brand focused on safety. Its brand position is built on a
history of safety innovations and the message that "Volvo equals safety."
Illustration of the Distinctions:
Consider the brand Coca-Cola:
 Brand Identity: Coca-Cola's brand identity includes its red and white color scheme, the iconic
contour bottle design, the scripted logo, and the associated happiness and refreshment values it
conveys.
 Brand Image: Coca-Cola's brand image reflects how consumers perceive the brand. It might be
associated with moments of joy, sharing, or nostalgia based on personal experiences and cultural
influences.
 Brand Position: Coca-Cola's brand position may be centered on being the "classic" or "original"
cola, setting itself apart from other cola brands by emphasizing its long history and timeless
appeal.
These distinctions highlight that while a company can shape its brand identity, the brand image
ultimately resides in the minds of consumers, and the brand position reflects how it competes in
the market. Successful branding aligns these elements to create a strong, memorable, and
competitive brand.
Q. What do you mean by re-sale price maintenance ? Discuss briefly the legal provisions for its
regulation in India.
Resale Price Maintenance (RPM) is a business practice where a manufacturer or supplier sets the
price at which a retailer or distributor must sell its products to consumers. In other words, RPM is
an agreement between the manufacturer and the retailer to maintain a certain price level for the
products.
Legal Provisions for Regulation of RPM in India:

In India, RPM has been a subject of competition law and is regulated primarily by the
Competition Act, 2002. The act aims to prevent anti-competitive agreements, including those
related to RPM. Here are the key legal provisions:
1. Section 3 of the Competition Act, 2002: This section deals with anti-competitive agreements. RPM
falls under the category of anti-competitive agreements if it causes or is likely to cause an
appreciable adverse effect on competition within India. Such agreements are prohibited.
2. Exceptions: The Competition Act allows for certain exceptions where RPM may be allowed:
 Efficiency Gains: RPM may be permitted if it results in efficiencies in the production or
distribution of goods, improvement in goods or services, or promotion of technical or
economic progress while allowing consumers a fair share of the resulting benefits.
 Product Characteristics: RPM may be allowed for goods that require specialized service or
technical expertise, provided that it does not lead to an abuse of market power.
3. Leniency Provisions: The Competition Act includes provisions for leniency, which encourage
parties involved in anti-competitive agreements, including RPM, to come forward and cooperate
with the Competition Commission of India (CCI). This can lead to reduced penalties or immunity
from penalties for the entities involved.
4. Competition Commission of India (CCI): The CCI is the regulatory body responsible for
enforcing competition law in India. It investigates cases of anti-competitive behavior, including
RPM, and can impose penalties and order corrective actions if violations are found.
It's essential to note that while RPM is generally considered anti-competitive, there can be
exceptions based on efficiency gains or the unique characteristics of certain products or markets.
The primary objective is to ensure that RPM practices do not harm competition and consumer
welfare. The CCI plays a crucial role in evaluating specific cases and determining whether RPM
practices comply with competition law.
Q. Why is distribution channel important for flow of goods from producer to consumer ?
Discuss the functions of retailing briefly.
Distribution channels are crucial for the efficient flow of goods from producers to consumers.
They play a pivotal role in the marketing and sales process, ensuring that products reach the right
customers at the right time and place. Here's why distribution channels are essential:
1. Reach and Accessibility: Distribution channels provide access to a broader customer base. They
allow products to reach customers in different geographical locations, whether local, regional,
national, or international. This expanded reach can significantly increase sales and market
penetration.
2. Efficiency: Distribution channels streamline the process of getting products to consumers. They
help in warehousing, transportation, and inventory management, reducing the time and effort
required for these tasks. This efficiency often leads to cost savings.
3. Customer Convenience: Channels make products readily available to consumers through various
outlets, including physical stores, e-commerce websites, wholesalers, and more. This convenience
enhances the overall customer experience.

4. Market Segmentation: Channels allow producers to target specific market segments effectively.
Different channels may cater to different customer groups, enabling companies to tailor their
marketing and distribution strategies.
5. Risk Reduction: Relying on multiple channels can reduce the risk associated with market
fluctuations, economic downturns, or changes in consumer preferences. Diversification of
distribution channels spreads risk.
Functions of Retailing:
Retailing is a critical component of distribution channels, as it involves the sale of goods directly
to consumers. The functions of retailing include:
1. Merchandising: Retailers select and purchase a variety of products from manufacturers and
wholesalers to offer to consumers. They decide on the product assortment, pricing, and
placement.
2. Inventory Management: Retailers manage inventory to ensure that products are available when
customers want to purchase them. This involves forecasting demand, replenishing stock, and
minimizing carrying costs.
3. Customer Service: Retailers provide a range of services to customers, such as product
information, assistance, and after-sales support. Excellent customer service can lead to customer
loyalty.
4. Marketing and Promotion: Retailers often engage in marketing and advertising efforts to attract
customers to their stores or websites. They create marketing campaigns, run promotions, and use
various strategies to drive sales.
5. Physical Store or Online Presence: Retailers can operate physical stores, e-commerce websites, or
both. They adapt to changing consumer preferences and leverage online platforms to reach a
broader audience.
6. Payment and Transactions: Retailers facilitate the buying process by accepting various payment
methods, including cash, credit cards, digital wallets, and online payment gateways.
7. Location and Store Layout: The location of retail outlets and the layout of stores are crucial
factors. Retailers aim to position their stores where their target customers are most likely to visit
and create layouts that encourage sales.
8. Supply Chain Management: Retailers coordinate with suppliers and wholesalers to ensure a
steady supply of products. They play a role in the distribution process by ordering and receiving
goods efficiently.
In summary, distribution channels and retailing are integral parts of the marketing and sales
ecosystem. They help bridge the gap between producers and consumers, making products
accessible, convenient, and attractive to a wide range of customers.
Q. Is personal selling equally relevant in all situations ? How can a manager create a positive
image by using the publicity ?
Personal selling is a marketing strategy that involves one-on-one interactions between a

salesperson and a potential customer. While personal selling can be effective in many situations,

its relevance can vary depending on the product, target audience, and other factors. Here are some
considerations regarding the relevance of personal selling and creating a positive image through
publicity:
Relevance of Personal Selling:
1. Complex or High-Involvement Products: Personal selling is particularly relevant when selling

complex or high-involvement products. These products often require detailed explanations,
demonstrations, and personalized recommendations. Examples include industrial machinery,
financial services, and real estate.
2. Relationship Building: Personal selling is crucial for industries where building long-term
relationships with customers is essential. Salespeople can nurture relationships, understand
customer needs, and provide ongoing support.
3. Customization: When products or services can be customized to meet individual customer needs,
personal selling becomes valuable. Salespeople can gather information about customer
preferences and tailor offerings accordingly.
4. B2B Sales: In business-to-business (B2B) sales, personal relationships and trust play a significant
role. Salespeople in the B2B sector often need to negotiate complex contracts, address concerns,
and provide solutions specific to each client.
5. High-Value Transactions: For high-value transactions, personal selling can help build trust and
confidence. Customers may feel more comfortable making significant investments when they have
a direct relationship with a knowledgeable salesperson.
Creating a Positive Image through Publicity:
Publicity refers to non-paid media coverage or exposure of a product, service, or brand. Creating a
positive image through publicity involves managing how your business is perceived by the
public. Here's how a manager can achieve this:
1. Press Releases: Regularly issue press releases to announce significant events, product launches,
partnerships, or community involvement. Ensure that press releases are well-written, informative,
and newsworthy.
2. Media Relations: Build relationships with journalists and media outlets relevant to your industry.
Respond promptly to media inquiries and provide them with accurate and useful information.
3. Social Media and Online Presence: Maintain a strong online presence through your website and
social media platforms. Share valuable content, engage with followers, and address both positive
and negative feedback professionally.
4. Community Involvement: Engage in community activities and initiatives that align with your
company's values. Participating in charitable events or supporting local causes can boost your
public image.
5. Transparency: Be open and honest in your communication. Address issues or crises promptly and
transparently. Demonstrating accountability can enhance your reputation.
6. Customer Testimonials: Encourage satisfied customers to share their experiences through
testimonials, reviews, or case studies. Positive word-of-mouth can significantly influence public
perception.

7. Thought Leadership: Establish yourself or your company as a thought leader in your industry.
Share your expertise through articles, blogs, webinars, and speaking engagements.
8. Awards and Recognitions: Highlight any awards or recognitions your business receives. These
accolades can serve as third-party endorsements of your quality and credibility.
9. Crisis Management: Develop a crisis management plan to handle negative situations effectively.
A well-handled crisis can actually enhance your reputation if managed appropriately.
In summary, personal selling's relevance depends on various factors, and it may not be equally
applicable in all situations. Simultaneously, creating a positive image through publicity involves
proactive efforts to manage your company's reputation, engage with stakeholders, and maintain
transparency and integrity in your business operations.
Q. What are the various steps that you should undertake for developing an effective marketing
communication ? How do you improve the efficiency of the channel members ?
Developing effective marketing communication involves a series of steps and strategies to convey
your message to the target audience in a compelling and persuasive way. Additionally, improving
the efficiency of channel members (distributors, retailers, etc.) is crucial for ensuring that your
products or services reach customers effectively. Here are the steps for developing marketing
communication and ways to enhance channel member efficiency:
Developing Effective Marketing Communication:
1. Identify Your Target Audience: Understand your audience's demographics, preferences,

behaviors, and needs. Create buyer personas to segment and target your communication efforts
effectively.
2. Set Clear Objectives: Define specific, measurable, achievable, relevant, and time-bound (SMART)
objectives for your marketing communication campaigns. These objectives should align with your
overall business goals.
3. Choose the Right Communication Channels: Determine which communication channels (e.g.,
social media, email marketing, advertising, public relations) are most suitable for reaching your
target audience. Consider the preferences of your audience and the nature of your message.
4. Craft Your Message: Create a compelling and consistent message that resonates with your
audience. Use persuasive language, storytelling, and emotional appeals to engage customers.
5. Design Creative Assets: Develop creative assets such as graphics, videos, copy, and visuals that
align with your message and brand identity. Ensure that your creative materials are visually
appealing and attention-grabbing.
6. Select the Timing: Timing is crucial in marketing communication. Determine the best times and
days to deliver your message for maximum impact. Consider seasonality and holidays as well.
7. Budget Allocation: Allocate your budget efficiently across various communication channels.
Consider factors like the channel's reach, cost, and potential ROI. Monitor and adjust your budget
as needed.
8. Implement the Plan: Execute your marketing communication plan across selected channels.
Ensure that your message is consistent and aligned across all touchpoints.

9. Monitor and Measure: Continuously monitor the performance of your communication efforts.
Use key performance indicators (KPIs) to assess the effectiveness of each channel and campaign.
10. Feedback and Adaptation: Collect feedback from customers and stakeholders. Use this feedback
to refine your messaging and strategies. Be prepared to adapt your communication plan based on
changing market conditions and customer preferences.
Improving Efficiency of Channel Members:
1. Training and Education: Provide comprehensive training and education programs to channel
members. Ensure that they understand your products, services, and brand values. Regularly
update them on new offerings and changes.
2. Streamline Communication: Establish clear lines of communication between your company and
channel members. Use technology, such as collaboration tools and dedicated portals, to facilitate
easy information sharing.
3. Incentives and Rewards: Offer incentives, bonuses, and rewards to channel members based on
their performance. These can include sales commissions, volume discounts, or exclusive access to
promotions.
4. Performance Metrics: Set clear performance metrics and expectations for channel members.
Monitor their performance regularly and provide constructive feedback. Recognize and reward
high-performing partners.
5. Inventory Management: Help channel members manage inventory efficiently. Implement
systems that provide real-time data on stock levels and demand trends to prevent overstocking or
understocking.
6. Co-Marketing and Co-Branding: Collaborate with channel members on joint marketing and
branding initiatives. This can include co-branded campaigns, advertising, and promotional events.
7. Feedback Mechanism: Establish a feedback mechanism where channel members can
communicate their challenges, suggestions, and concerns. Use this feedback to make necessary
improvements.
8. Channel Partner Support: Offer support in terms of marketing materials, sales tools, and technical
assistance. Ensure that channel members have access to the resources they need to represent your
products effectively.
9. Conflict Resolution: Develop clear conflict resolution procedures for addressing disputes or
conflicts that may arise between your company and channel members. Ensure fairness and
transparency in conflict resolution.
10. Regular Evaluation: Periodically evaluate the performance of channel members and the
effectiveness of your channel management strategies. Make adjustments as needed to optimize
efficiency.
By following these steps and strategies, you can develop effective marketing communication and
enhance the efficiency of your channel members, ultimately leading to improved product
distribution and customer reach.
Q. Explain the rules relating to display of retail prices. Discuss the features responsible for
failure of new products.

Rules Relating to Display of Retail Prices:
In many countries, there are regulations and guidelines regarding the display of retail prices.
These rules are designed to protect consumers and ensure transparency in pricing. Here are some
common rules related to the display of retail prices:
1. Clear and Conspicuous: Retailers must display prices in a clear and conspicuous manner. This
means that prices should be easily visible and legible to consumers. Small or hidden price tags are
not allowed.
2. Inclusive Pricing: Prices should include all applicable taxes and charges. In some regions, it's
mandatory to display the total price the customer will pay, including any additional fees.
3. Unit Pricing: Retailers may be required to display unit prices for certain products. Unit prices
show the cost per unit of measurement (e.g., price per ounce, per kilogram) and help consumers
compare prices more easily.
4. Discounts and Promotions: If a product is on sale or part of a promotional offer, the original price
and the discounted price should be clearly displayed. The duration of the sale or promotion
should also be specified.
5. Currency: Prices should be displayed in the local currency or a currency that is widely accepted in
the region. Multiple currencies should not be used unless it's common practice in the area.
6. Online Pricing: For e-commerce businesses, online prices should be clear and accurate. Any
additional charges, such as shipping fees, should be prominently displayed before the customer
reaches the checkout.
7. Accuracy: Prices should be accurate, and any changes in pricing should be updated promptly.
Misleading or deceptive pricing practices are usually prohibited.
8. Accessibility: Prices should be accessible to all customers, including those with disabilities. This
may require providing price information in alternative formats for people with visual or hearing
impairments.
9. Display Location: Prices should be displayed near the product they refer to. For example, price
tags should be next to the items on store shelves. This helps customers easily identify the prices of
products they are interested in.
Features Responsible for Failure of New Products:
The successful launch and adoption of new products can be challenging, and several factors can
contribute to their failure in the market. Here are some common features and reasons responsible
for the failure of new products:
1. Lack of Market Need: One of the primary reasons for product failure is a lack of demand or a
clear market need for the product. If a product doesn't solve a problem or meet a need, it is
unlikely to succeed.
2. Poor Market Research: Inadequate market research can lead to misjudgment of customer
preferences, demographics, and behaviors. Without accurate data, businesses may develop
products that miss the mark.
3. Competition: Fierce competition in the market can make it challenging for a new product to gain
a foothold. Established competitors may have a strong customer base and brand loyalty.

4. Ineffective Marketing: Even a great product can fail if it's not marketed effectively. Insufficient
advertising, unclear messaging, or targeting the wrong audience can all contribute to failure.
5. Quality and Reliability Issues: Products that suffer from quality problems or frequent
breakdowns can quickly lose customer trust and loyalty.
6. Price Point: Setting the wrong price for a product can be detrimental. Products that are perceived
as overpriced may not gain traction, while those priced too low may not cover costs.
7. Timing: Launching a product at the wrong time, such as during an economic downturn or when
there is limited consumer interest, can lead to failure.
8. Distribution Challenges: If a product is not readily available to consumers through the right
distribution channels, it can struggle to gain visibility and accessibility.
9. Failure to Adapt: Markets and consumer preferences change over time. Products that fail to adapt
to these changes or incorporate new features and technologies can become obsolete.
10. Legal and Regulatory Issues: Products that do not comply with local or international regulations
and standards can face legal challenges, recalls, or bans.
11. Supply Chain Disruptions: Disruptions in the supply chain, such as delays in production or
distribution, can impact a product's availability and success.
12. Inadequate Testing: Insufficient product testing, including beta testing with real users, can lead to
unforeseen issues and dissatisfaction among customers.
13. Poor Execution: Even with a great concept, poor execution in design, production, or delivery can
lead to product failure.
To increase the chances of success, businesses should conduct thorough market research, invest in
effective marketing and distribution strategies, prioritize quality and reliability, and continuously
monitor and adapt to changing market conditions and customer feedback.
Q. Discuss various stages involved in the buying decision process. Explain various cultural
factors which influence consumer behaviour.
Stages in the Buying Decision Process:
The buying decision process is the series of steps that consumers go through when considering
and making a purchase. These stages can vary in complexity depending on the product or service
being purchased, but generally, they include the following steps:
1. Problem Recognition: This is the initial stage where a consumer identifies a need or a problem
that can be solved through a purchase. The need can be triggered by internal factors (such as
hunger) or external factors (such as advertising).
2. Information Search: After recognizing a need, consumers seek information to help them make an
informed decision. They may gather information from various sources, including personal
experiences, family and friends, online reviews, advertisements, and expert opinions.
3. Evaluation of Alternatives: Consumers evaluate the available options based on various criteria,
such as price, quality, features, brand reputation, and personal preferences. This stage involves
comparing and contrasting different products or services.

4. Purchase Decision: Once consumers have evaluated their options, they make a decision to
purchase a specific product or service. The purchase can be influenced by factors like price
discounts, availability, and personal attitudes.
5. Post-Purchase Evaluation: After making the purchase, consumers assess their satisfaction with
the product or service. If the product meets or exceeds their expectations, it leads to positive post-
purchase satisfaction. If not, it can lead to dissatisfaction or regret.
6. Post-Purchase Behavior: Depending on their level of satisfaction, consumers may exhibit different
post-purchase behaviors. Satisfied customers are more likely to become loyal to the brand, engage
in positive word-of-mouth, and make repeat purchases. Dissatisfied customers may return the
product or complain to the company.
Cultural Factors Influencing Consumer Behavior:
Cultural factors play a significant role in shaping consumer behavior. These factors are deeply
ingrained in individuals through their upbringing, society, and cultural background. Here are
some cultural factors that influence consumer behavior:
1. Culture: Culture encompasses the values, beliefs, customs, and norms shared by a group of
people. It influences the way consumers perceive products, make choices, and interact with
brands. For example, cultural differences can affect preferences for food, clothing, and leisure
activities.
2. Subculture: Subcultures are smaller groups within a larger culture, sharing unique characteristics.
Subcultural factors, such as ethnicity, religion, nationality, and regional differences, can impact
consumer preferences and behaviors. For instance, subcultural values may affect clothing choices
and food preferences.
3. Social Class: Social class is defined by an individual's position in the social hierarchy based on
factors like income, education, and occupation. It can influence consumer decisions regarding
lifestyle, product choices, and brand preferences. People from different social classes may have
distinct tastes and spending habits.
4. Reference Groups: Reference groups are groups to which individuals compare themselves and
seek social approval. The opinions and behaviors of reference groups can significantly influence
consumer choices. For example, a teenager may be influenced by the fashion choices of their peer
group.
5. Family: Family is a critical cultural factor affecting consumer behavior. Family roles, structure,
and dynamics can influence purchase decisions. For instance, parents may make choices based on
their children's needs, and family traditions can impact holiday and gift-buying behaviors.
6. Cultural Symbols and Rituals: Symbols, rituals, and traditions associated with culture can
influence consumer behavior. These symbols can be incorporated into branding and advertising to
appeal to cultural values and aspirations.
Understanding these cultural factors is crucial for businesses to tailor their marketing strategies
effectively and create products that resonate with specific consumer segments. It allows them to
align their offerings with the cultural context and values of their target audience, ultimately
leading to more successful marketing campaigns and satisfied customers.


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Marketing vs. Selling for Consumer Goods:

Creating Consumer Orientation:

1. Understand Customer Needs:

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 Tailor products to meet specific consumer requirements.

By integrating these strategies, companies can shift from a selling-oriented approach to a

Importance of Market Segmentation:

Bases for Market Segmentation:

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Understanding these segmentation bases allows businesses to create targeted marketing

Consumer Buying Decision Process and Brand Selection Factors:

Consumer Buying Decision Process:

 In-depth research and evaluation are conducted.

Factors Influencing Brand Selection:

Expanded Services Mix:

1. Core Service or Product:

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 Supportive services that make the overall experience more convenient.

Services Marketing Triangle:

1. Company (Service Provider):

(b) Discuss the classification of services with examples.

1. Business-to-Consumer (B2C) Services:

 Services provided between businesses.

5. Write short notes on the following :

(a) Advantages and disadvantages of Branding

(b) Product positioning

(c) Cost based pricing

(d) Trade discounts and allowances

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(a) Advantages and Disadvantages of Branding:

1. Costs: Establishing and maintaining a brand can be expensive.

(b) Product Positioning:

Importance: Effective product positioning:

 Attracts the target audience.

(c) Cost-Based Pricing:

1. Calculate Cost: Determine production and associated costs.

2. Markup: Add a desired profit margin.

 Simplicity and ease of calculation.

 Ignores market demand.

(d) Trade Discounts and Allowances:

 Discounts offered by manufacturers to channel partners, such as wholesalers and retailers.

 Boosts sales volume.

 Must align with overall pricing strategy.

6. Explain various channels of distribution applicable in a large sized business

Channels of Distribution in Large-Sized Business Organizations:

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 Advantages: Leveraging the strengths of each partner to enhance distribution efficiency

How Channels of Distribution Add Value to Marketing of Goods:

1. Wider Market Reach:

In conclusion, channels of distribution play a pivotal role in large-sized business organizations,

7. What is Marketing Communication ? Explain various types of marketing

Marketing communication, often referred to as marcom or integrated marketing communication

Various Types of Marketing Communication:

In conclusion, an effective marketing communication strategy combines multiple channels and

8. (a) Why relationship marketing is gaining significance these days ? Discuss.

Significance of Relationship Marketing:

Relationship marketing has gained immense significance in contemporary business practices.

 Importance: Positive relationships contribute to a favorable brand image, attracting new

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Relationship Building Strategies: