006

1 (a)
Define And Discuss The Term “Marketing”. Elaborate Its Scope And
Significance In An Enterprise
Marketing is the process of identifying, anticipating, and satisfying customer
needs and wants through the creation, promotion, and distribution of products
and services. It involves a range of activities that are aimed at creating a
strong brand identity and increasing sales and profitability for a business.
Define and discuss the term “Marketing”. Elaborate its scope and significance
in an enterprise - The scope of marketing is broad and encompasses
everything from market research to product development to advertising and
promotions. Some of the key areas of marketing include:
Market research: This involves gathering and analyzing information about
customers, competitors, and the overall market to identify trends,
opportunities, and potential challenges.
Product development: This involves designing, testing, and launching new
products or services that meet the needs and wants of target customers.
Pricing: This involves setting prices that are competitive and appropriate for
the target market.
Promotion: This involves creating and executing marketing campaigns that
increase brand awareness, generate leads, and drive sales.
Distribution: This involves getting products and services to customers
through various channels, such as online marketplaces, retail stores, or direct-
to-consumer sales.
The significance of marketing in an enterprise cannot be overstated. A strong
marketing strategy can help a business achieve its goals by:
Building brand awareness: Marketing efforts can help create a strong brand
identity and increase visibility among potential customers.
Generating leads and sales: Effective marketing campaigns can drive traffic
to a business's website or physical location and convert leads into paying
customers.
Building customer loyalty: By delivering a positive customer experience and
building relationships with customers, marketing can help drive repeat
business and long-term loyalty.
Providing valuable insights: Through market research and analysis,
marketing can provide valuable insights into customer preferences, market
trends, and the competitive landscape.
Define and discuss the term “Marketing”. Elaborate its scope and significance
in an enterprise , marketing is a critical function for any business that wants to
succeed in today's competitive marketplace. By understanding and responding
to customer needs and wants, businesses can create products and services
that are truly valuable and build long-term relationships with customers.

What Is The Definition Of Marketing

Marketing is the process of identifying, anticipating, and satisfying customer
needs and wants through the creation, promotion, and distribution of products
or services. It involves a range of activities aimed at generating interest and
demand for a company's offerings, building brand awareness, and ultimately
driving sales.
Marketing begins with research and analysis to understand the target market
and its needs and preferences. This information is used to develop products or
services that meet those needs, as well as pricing and distribution strategies to
make those offerings accessible to the target audience.
Promotion is also a critical aspect of marketing, involving advertising, public
relations, sales promotion, and other tactics to communicate the benefits of the
product or service to potential customers. In addition, marketing involves
ongoing efforts to maintain relationships with customers and build brand
loyalty, including customer service, social media engagement, and loyalty
programs.
Overall, marketing is a strategic function that is essential for the success of
any business, as it helps to create value for customers and generate revenue
for the company.
What Is The Scope Of Marketing In An Enterprise
Marketing is a critical aspect of any enterprise, regardless of its size or
industry. Its scope includes a wide range of activities that are designed to
promote a company's products or services, build brand awareness, and
generate revenue. Define and discuss the term “Marketing”. Elaborate its
scope and significance in an enterprise , Some of the key areas of marketing
within an enterprise include:
Product or Service Development: Marketing can play a key role in the
development of new products or services, ensuring that they meet the needs
of the target market and are positioned effectively in the marketplace.
Market Research: Marketing research involves gathering and analyzing data
on consumer behavior, preferences, and needs, which is then used to inform
product development, pricing strategies, and promotional campaigns.
Brand Management: A company's brand is a valuable asset that needs to be
carefully managed and protected. Marketing activities such as advertising,
public relations, and social media can help build and maintain a strong brand
identity.
Sales and Distribution: Marketing activities also encompass the development
of sales and distribution strategies, such as identifying the most effective
channels for reaching customers and building relationships with key
distribution partners.
Customer Engagement and Retention: Marketing efforts are essential for
engaging with customers, building loyalty, and retaining their business over the
long term. This includes activities such as customer service, social media
engagement, and loyalty programs.
Overall, the scope of marketing in an enterprise is vast and touches on many
aspects of the business. By effectively leveraging marketing strategies and
techniques, companies can build strong brands, generate sales, and create
long-term value for their stakeholders.
What Is The Significance Of Marketing Economics
For You
As an artificial intelligence language model, I don't have personal preferences
or experiences. However, I can explain the significance of marketing
economics in general.
Marketing economics refers to the application of economic principles and
techniques to understand and analyze the behavior of consumers, firms, and
markets in the context of marketing activities. It provides a framework for
decision-making in marketing by examining the costs and benefits of various
strategies and tactics.
The significance of marketing economics lies in its ability to help companies
make informed decisions about their marketing investments. By analyzing the
costs and benefits of different marketing approaches, firms can determine
which strategies are most effective in achieving their business objectives, such
as increasing sales or improving brand awareness.
Marketing economics can also help companies understand the behavior of
consumers and the factors that influence their buying decisions. This
information can be used to develop more effective marketing campaigns and
product offerings that better meet the needs and preferences of customers.
Overall, marketing economics is an important tool for companies to understand
the economic implications of their marketing decisions and to make more
effective use of their marketing resources. By applying economic principles to
marketing, firms can optimize their marketing investments and improve their
overall business performance.
Difference between Needs, Wants
and Demands with Examples
By John / October 17, 2021

Introduction
How do you know if something is really worth pursuing? When it comes to satisfying
needs, wants, and demands people are often confused. We all have needs, wants, and
demands in our lives. We want certain things in life. Our wants and needs change with
time. A lot of times when people think about a business they think about their product or
service. However, you have to remember that a business is only as successful as the
clients that use it. If you want your business to be successful then it is vital that you get
in touch with what your clients need and wants and then find ways to satisfy them. So
how does it work? Let’s find out!

What is a Need?
Human needs are a state of felt deprivation. In Maslow’s hierarchy need represent the
basic physical needs for food, clothing, warmth, and safety. Marketers can’t create real
needs; they are a basic part of human beings. They play a vital role. They are what
make us who we are and how we live our lives. An example of a basic requirement for
a human being is food. The agriculture sector works tirelessly to feed everyone. If you
don’t have enough to eat or you can’t afford to buy food then your basic need is not
being met. A person’s need is never fully satisfied; however, they can be partially
satisfied depending upon the types of needs. An example of partial satisfaction of a
human need is having money in the bank or having a roof over your head. When you
satisfy the basic needs of human beings then you have satisfied their basic
requirements for being alive.

What is a Want?
The form human needs take as they are shaped by culture and individual personality.
The basic difference between needs and wants is that the wants are more
sophisticated and require more effort to obtain. Examples of human wants include
having money, having internet, having a Mercedes car, or being married. A want is not
usually as basic as a need but it does have the same effect on the person who has it.
The wants are what make us all different and what keeps our society moving forward.
The need to be accepted by others and shown affection are the most basic of social
needs. When a person feels rejected or judged they have an emotional reaction that
results in stress.

What is a Demand?
When backed by buying power, want becomes a demand. Staying in star hotels,
owning multiple real estate properties, buying luxury cars like BMW or a Mercedes can
be considered as an example of demand. Demand is the force that helps society
progress. When demand is satisfied, people feel better about themselves and this
feeling increases their desire to work hard for what they want and that achieve status
symbol. It sits right at the top of Maslow’s hierarchy with self-actualization. Specific
products are designed and targeted to satisfy the conspicuous consumption of rich
individuals. Brands like Louis Vuitton and Ferrari fall into this category.

Difference between Needs, Wants, and

Demands
To recap:
Needs: The basic requirements for human beings to survive.
Wants: Need when shaped by culture and individual personality becomes want.
Demands: When backed by buying power, want becomes a demand.

Conclusion
To summarise, human wants and needs are the fundamental forces that move society
forward. We all have basic needs like food, water, and shelter but we also have wants
that can be more sophisticated than our basic needs. When people get these things
they feel better about themselves and this helps them to achieve status symbols like
cars or clothes. In order to satisfy these wants and needs, people buy goods and
services. The type of goods that we buy is dependent on the status symbol we are
trying to achieve. Marketing management should consider the underlying customer
needs, wants, and demands of the consumer before devise any marketing strategy for
their target market. Failure to understand the underlying basic needs will lead to
marketing myopia. FMCG companies have cracked the art of evoking the underlying
need of the customer through advertisement over the years. Maybe it’s time for
emerging industries like IT to catch up.

1 (b)

The 6 Stages of the

Consumer Buying Process in
Marketing
An important component in sales and marketing is the buying
process. It describes the six-stage journey consumers take to
become a customer and what they look for at each stage.
Companies use the various stages to turn more consumers into
customers.
In this guide, we discuss what the buying process is, what
each of the six stages of the consumer buying process means
and how businesses can improve their efficiency at each
stage.

What is the consumer buying

process?
The buying process is the series of stages a consumer goes
through before becoming a customer. Businesses can improve
sales generation by learning about each stage and how to best
optimize their use.
When laid out visually, the buying process typically takes the
shape of a funnel. At the top of the sales funnel is everyone
who hears of a business. At the bottom is the small percentage
that turns into customers. The goal of understanding the
buying process is to guide consumers from one step to another
so that more consumers reach the bottom of the funnel.
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6 stages of the consumer buying

process
Here are the steps that consumers go through on their journey
to becoming a customer:
1. Realizing there is a problem
A person first realizes there is a problem that needs solving. A
business's goal is to solve a specific problem for its customer
through its products or services. It is this step that starts the
journey for every customer.
To get consumers to enter into this stage, businesses want to
direct their advertising efforts toward highlighting these
problems. A business should think about what problems its
particular product or service can solve, then focus on these.
Example: A landscaping company may run advertisements
asking the question "Why is your lawn brown?" This question
gets people to think about their own lawn and whether they
need a landscaper. At this point, businesses are not trying to
pitch their products or compare themselves against their
competitors. They are simply trying to make people aware that
they have a problem that needs solving.

2. Conducting research
Once a potential customer realizes they have a problem, the
next thing they may do is conduct some research. Unless a
business is selling relatively cheap products, they can count on
consumers to perform some basic research before buying.
To help consumers in this stage of the journey, businesses can
provide plenty of information related to the person's problem.
During this stage, they are trying to lead potential customers
toward the idea that they need the business's help without
directly promoting their products or services. This consumer
has only just learned that they have an issue and they are now
wondering what possible solutions exist.
Some things businesses want to focus on during this stage are:

 Getting positive reviews on their products or services

 Building authority as an expert within their niche
 Receiving endorsements from popular figures within their
niche
 Generating brand awareness through advertising and
social media

Example: The landscaping company could create a blog post

titled "5 Tips for Taking Care of Your Lawn." This blog post
would talk about all the possible solutions, one of which is
hiring a landscaper.
3. Comparing options
After conducting some initial research, consumers start
comparing their options. They think about which course of
action they would like to take or which products they want to
try. It is during this stage that businesses want to showcase
their advantages and contrast themselves with their
competitors.
Some things businesses can focus on here include:
  Providing product comparison guides
 Getting reviewed by major websites or print outlets
 Offering customer testimonials
 Providing customer support agents who can answer
questions

The more information a business can provide about itself, the

easier it will be for a potential customer to choose it.
Example: The landscaping company could create a page on its
website titled "Why Choose Us," which lists its biggest
strengths and compares them against other local landscapers.
4. Deciding to purchase
Even if a business does a good job of showing consumers why
they need its product and why it is better than the competitors,
there is still a chance that the consumer may decline to buy
the product. This may be the crucial point of the buying
process as businesses don't want to lose a sale that is so
close to completion. During this stage, businesses should
focus on a few things:

 Reminding the customer of the initial problem and how

they can help
 Providing some measure of security (for example, a strong
return policy or money-back guarantee)
 Sending out simple email reminders to customers who are
close to completing the sales process
 Offering last-second discounts to get the consumer to
convert into a customer

Example: The customer selects the landscaping company after

researching similar companies, visiting their websites and
reviewing their specials.
5. Completing the purchase
If a business is successfully able to convince a consumer to
become a customer, it should make sure the buying process is
as simple as possible. Businesses should focus on streamlining
their checkout process to remove any chance that prospective
customers leave. They can do this in a few ways such as:

 Using professional shopping cart software

 Offering several payment methods
 Keeping lines short and moving at the store
 Upgrading their POS software or equipment

All businesses should consistently monitor their checkout

process and look for signs of inefficiency. A good way to do
this is by directly asking for customer feedback .
Example: The customer contacts the landscaping company,
agrees to its prices and schedules its crew to care for lawns at
two locations.
6. Evaluating the decision
The buying process doesn't stop with the completion of the
sale. After receiving a product or service, customers analyze
and evaluate their decision. For businesses, bringing back a
customer is much easier than generating a new one, making
it important that customers are satisfied with their decision.
There are a few ways that businesses can help to ensure that
customers are happy with their purchase and buy again:

 Provide excellent customer service

 Provide refunds or replacements in a timely fashion
 Offer a referral bonus
 Ask for customer feedback
 Provide discounts for repeat customers
 Create helpful guides to get the most out of the product

Example: The customer is satisfied with the landscaping

company and signs a contract for year-round services. They
then tell their neighbors and friends about the company. Those
referrals lead to more business for the landscaping company.
 2(a)
Discuss The Product Line Decisions That A Firm Should Consider To
Pursue And Consolidate Its Position In The Face Of Competition
Discuss the product line decisions that a firm should consider to pursue
Product line decisions are important for firms to consider in order to pursue
and consolidate their position in the face of competition. A product line is a
group of related products that a company offers to its customers. Here are
some key product line decisions that firms should consider:
Product Line Expansion: Firms can expand their product line by introducing
new products that are related to their existing products. For example, a
smartphone manufacturer may introduce a new model with additional features
or capabilities.
Product Line Contraction: Firms may also consider contracting their product
line by eliminating products that are no longer profitable or do not align with
the company's overall strategy. This can help the firm focus on its core
products and reduce costs.
Product Line Modernization: Firms may update their product line by
incorporating new technologies, features, or designs to keep up with changing
consumer preferences and trends.
Product Line Positioning: Firms can position their product line to target
specific customer segments or address specific customer needs. For example,
a clothing company may offer different product lines for different age groups or
occasions.
Product Line Pruning: Firms can also consider pruning their product line by
eliminating unprofitable products that are not generating sufficient revenue or
contributing to the company's overall growth.
Product Line Diversification: Firms can also consider diversifying their
product line by offering new products in different product categories or
industries. This can help the firm reduce its reliance on a single product
category and spread its risk.
Discuss the product line decisions that a firm should consider to pursue
Overall, product line decisions are important for firms to consider as they help
to ensure that the company's product offerings remain relevant and
competitive in the face of changing market conditions and consumer
preferences. By pursuing a well-defined product line strategy, firms can
consolidate their position in the market and maintain a strong competitive
advantage.
What Are The Product Line Decisions
Product line decisions are the strategic decisions that a company makes
regarding the products that it offers to its customers. Discuss the product line
decisions that a firm should consider to pursue , There are several key product
line decisions that a company may consider:
Product Line Length: This refers to the number of products in a company's
product line. A company may choose to have a long product line with many
products, or a short product line with fewer products.
Product Line Width: This refers to the range of different product categories
that a company offers. A company may choose to focus on a narrow range of
product categories, or to offer a wide range of different products.
Product Line Depth: This refers to the different variations of a product that a
company offers. For example, a company that offers smartphones may have
different models with different features, colors, and storage capacities.
Product Line Consistency: This refers to the extent to which a company's
products are related to each other. A company may choose to have a highly
consistent product line, where all products are closely related to each other, or
a less consistent product line, where there is more variety in the types of
products offered.
Product Line Pruning: This refers to the process of eliminating unprofitable
or low-performing products from a company's product line in order to focus on
the most profitable products.
Product Line Extension: This refers to the process of adding new products to
a company's existing product line in order to expand the range of products
offered.
Product Line Contraction: This refers to the process of reducing the number
of products in a company's product line in order to focus on the most profitable
products.
Discuss the product line decisions that a firm should consider to pursue ,
product line decisions are important strategic decisions that can have a
significant impact on a company's success. By carefully considering each of
these product line decisions, companies can develop a product line strategy
that aligns with their overall business goals and helps them to achieve long-
term success.
What Are The Product Line Decisions That A Firm
Should Consider To Pursue
When considering product line decisions, a firm should consider several
factors to pursue its business objectives. Here are some of the key product
line decisions that a firm should consider:
Product Line Length: A firm can consider expanding or contracting its product
line length by introducing new products or discontinuing underperforming
ones. This decision depends on various factors like customer preferences,
profitability, and market demand.
Product Line Width: A firm should consider the range of product categories
that it wants to offer. A firm can decide to focus on a narrow range of product
categories or a wider range of products depending on its target market and
competition.
Product Line Depth: A firm should consider the variations of a product that it
wants to offer. It can introduce variations in terms of features, colors, sizes,
etc., to cater to the different needs of its target market.
Product Line Consistency: A firm should decide whether its product line should
be highly consistent or less consistent. Highly consistent product lines have
products that are closely related to each other, while less consistent product
lines offer products in different categories.
Product Line Extension: A firm can consider extending its product line by
introducing new products or services that are related to its existing products or
are in a different category. This decision depends on the firm's core
competencies and market demand.
Product Line Pruning: A firm can consider pruning its product line by
discontinuing products that are unprofitable or underperforming. This decision
can help a firm focus on its core products and reduce costs.
By carefully considering these product line decisions, a firm can develop a
product line strategy that aligns with its business objectives, target market, and
competition. A well-defined product line strategy can help a firm consolidate its
position in the market and maintain a competitive advantage.
What Is The Importance Of Product Line
Decisions
Product line decisions are important for a business because they have a direct
impact on the success of a company's product offerings. Here are some
reasons why product line decisions are significant:
Meeting Customer Needs: By making the right product line decisions, a
company can offer products that cater to the diverse needs and preferences of
its customers. A well-designed product line can help the company meet the
demands of different customer segments and provide them with more options.
Maximizing Profitability: A company can maximize its profitability by making
strategic product line decisions. By analyzing market trends and customer
preferences, the company can introduce new products or discontinue
underperforming products. This helps the company focus on its most profitable
products and reduce costs.
Building Brand Image: A company's product line decisions play a crucial role in
building its brand image. By offering a range of high-quality products that meet
the needs of its customers, a company can establish a positive brand image
that promotes customer loyalty and drives sales.
Staying Competitive: Product line decisions also help a company stay
competitive in the market. By analyzing its competitors and their product
offerings, a company can make strategic product line decisions that give it a
competitive edge. For instance, a company can introduce innovative products
that differentiate it from its competitors or can focus on a niche product
category that is underserved by the competition.
Managing Risk: Discuss the product line decisions that a firm should consider
to pursue Making the right product line decisions can help a company manage
risk. For instance, by diversifying its product line, a company can reduce the
impact of economic downturns or changes in market demand.
Overall, product line decisions are crucial for a company's success, and a well-
designed product line can help a company meet customer needs, maximize
profitability, build brand image, stay competitive, and manage risk.

2(b)

Product Life Cycle (PLC) - Meaning, Importance & Stages

What is Product Life Cycle (PLC)?
PLC or Product Life Cycle is the journey of any product from its start, growth, maturity & decline.
Product life cycle (PLC) deals with the various stages that a product goes through in the market
and the business it does. Product life cycle is an important concept in business as it tracks the life
cycle of any product, service or brand. PLC represents the performance of sales of a product over
a period of time.
In this article:

 Importance of Product Life Cycle (PLC)

 Product Life Cycle (PLC) Stages

Importance of Product Life Cycle (PLC)

Product life cycle is an important concept in business & marketing as it changes a company's
strategy. Depending upon the market potential as well as customer demand for a product, every
product undergoes a different phase as a part of its product life cycle. The various stages of in the
PLC of any product, help a company decide what marketing strategy is to be implemented to
ensure maximum return on sales as well as have minimum investment.
Read More

 Product Concept
 Production Concept
 Product Orientation
 Product Policy
 Product Research

Product Life Cycle (PLC) Stages

Product life cycle undergoes broadly 4 different stages i.e.product introduction, product growth,
product maturity and then eventually product decline. The stages of PLC can be elaborated as
mentioned below:

From the above graph, it is clear that sales vary with time and hence the strategies used in each of
these stages should be different.
1. Introduction stage – In this PLC stage, sales maybe low and hence the profit would be low.
Introduction stage is when a product is introduced in the market. The firm has to engage in heavy
promotion to create awareness about the product in the market. Cost plus formula is generally
used for determining the price of the product.
2. Growth stage – Sales in this period of product life cycle are rapidly rising and so are the profits.
Promotion is not that aggressive in the growth stage. However, firms do offer warranties and other
offers to promote the product. The main aim is to increase the market share and sales revenue.
3. Maturity stage – In this PLC stage, sales have reached a peak and even the profits have
reached the peak. Here the strategy is to maximize profits and also retain the market share. The
firm also tries to price the product in the same range as that of the competitor in the maturity
stage. The firm tries to diversify and bring in variations by creating newer models. Thus, strong
distribution networks are built and the promotion is increased to create awareness about the new
brands.
4. Decline stage –Here, both sales and profits are declining in the decline stage. The strategy is
to incur minimal or no expenditure on this product and milk it as much as possible before it
declines completely. Hence prices are cut. Promotion is minimized and a strategy of product
deletion or product elimination is also considered.
Hence, this concludes the definition of Product Life Cycle (PLC) along with its overview.

The Decline Stage Of The Product Life Cycle:

Reasons & Examples
What is the Product Life Cycle?
The product life cycle is the process through which a product is developed, goes into
the market, and is ultimately removed. It’s widely used by marketers and business
owners to make important decisions. Understanding which stage your product is in at
any given time is crucial to better strategy development because you can use that
information to increase your product’s lifespan or make necessary changes to adapt to
evolving consumer needs.
What Are the Stages of the Product Life
Cycle?
There are generally five stages in the product life cycle:

1. Development: Development is where the product journey begins. During this

stage, companies invest in market research and product development strategies
to develop prototypes.
2. Introduction: The introduction stage of a product is when it’s first launched in a
marketplace.
3. Growth: The growth stage of a product starts when the product has made its
place in the market and consumers have embraced it.
4. Maturity: The maturity stage of a product is when the product is at its peak, and
this stage is when you may reach market saturation and face increased
competition.
5. Decline: The decline stage of a product is when a mature product loses customer
interest and its sales start drifting downward.

What Happens During the Decline Stage of

the Product Life Cycle?
During the decline stage, brands will experience a decline in sales in the face of
heightened competition or dwindling consumer demand. This phase is difficult to
overcome; typically, companies will either discontinue their product, sell their company,
or find new ways to iterate on their product in an attempt to revive sales.
Why Do Products Enter the Decline Stage?
Products enter the decline stage when consumer appeal and sales drift downward. This
happens every day: consumers get bored, markets are oversaturated, or a newer,
better product is introduced that eclipses its predecessors.
It’s important to remember that not every product will necessarily face a decline stage.
For example, it’s hard to imagine a world in which people aren’t purchasing iPhones—
while older models of the phone have been discontinued, Apple continues to iterate on
each model and revive consumer demand on a regular basis. Or, think of the beloved
Coca-Cola: while the formula has changed over time since the late 1800s, it’s been
regularly stocked on store shelves ever since. Companies that aren’t globally
recognized can also implement strategies to avoid, or exit, the decline stage—more on
that below.
How Does a Product Get Out of the Decline
Stage?
Getting out of the decline stage can be challenging, but not impossible. You can
improve your standing in the marketplace by agilely responding to changing customer
needs with strategies like social listening, and using product concept and price testing
to determine how best to add new offerings to your lineup. These can help you stay
relevant in the marketplace and revive (or sustain) consumer demand.
One of the best things you can do to avoid entering the decline stage (or delaying its
onset) is to start planning before your product is even released to the market. One
incredibly helpful strategy is to attempt to sketch out the life of a product, which
includes:

 Sketching out competitive moves

 Define important tactical moves for expansion or iteration once the product is
brought to market
 Looking to the future to try and get a better idea of your competitive environment

This strategy can help you expand the life of a product and puts you in a better position
to weather challenging market environments.
If you find that a product is approaching, or recently entered, the decline stage, here
are some other strategies you can use:

 Prolong the product’s life: By regularly promoting the brand and releasing new
updates, you can reinvigorate consumer demand before any products can fall
into the decline stage. By doing this, you can boost the popularity of previous
releases and extend the product’s lifecycle. Consider multi-part video game
series or movie adaptations of popular books: when a new release is announced,
consumers flock to previous or original releases in anticipation of a new
installment. This strategy requires ongoing work and careful timing, otherwise,
your product may reach decline before you have a chance to boost its popularity.
 Change direction: If consumers stop purchasing your product, it might be time to
start exploring alternative uses for it. You might consider selling in a different
industry, or modifying your product so it’s more appealing to other market
segments. Play-Doh, for instance, was invented in the 1930s as a wall cleaner.
Once demand dropped, they discovered it held mass appeal for teachers who
used it in their classrooms for arts and crafts. Here’s another example: remember
when Netflix was a mail-order DVD service? The streaming giant pivoted to adapt
to a changing market landscape and started appealing to consumers who were
more interested in streaming services than physical DVDs.
 Capitalize on nostalgia marketing: In rare instances, certain consumer
products from our past can make a reappearance and experience a revival in
demand. When this happens, sales of a product gain a new vitality—sometimes
even surpassing their previous sales peak. Companies achieve this revival by
relying on nostalgia marketing and reminding consumers of the positive
experiences they had with their products in the past. A recent example of this
phenomenon is Dunkaroos, a popular snack from the 90s and early 00s that was
discontinued in the United States in 2012 after a slow decline in popularity.
However, nearly a decade later (and following a mass social media effort to bring
back Dunkaroos), the brand announced that Dunkaroos would be returning to
 shelves in 2020. As of today, they’ve released close to ten products (some new,
some old) and still rely heavily on nostalgia marketing to sustain their popularity.

Not every product will reach the decline stage, but for those that do, it can be
challenging to overcome. It’s important to start the planning process for your product’s
eventual decline before your product is even released to the market.
To make this process easier, Starlight Analytics offers solutions like product concept
testing, price testing, and social listening to help you refine your product throughout its
product life cycle and identify opportunities to enter new markets, and adapt to
consumer needs by gaining firsthand feedback from consumers.

3(a)
Factors Affecting Pricing Decisions
There are a number of factors affecting the pricing decisions and price is not determined simply.
Moreover, there are many factors affecting pricing decisions. The reason is that the price is a very
sensitive issue for the customers in their purchasing behavior. Following are the two main factors
affecting pricing decisions:
1– Internal Factors
2- External Factors
Internal Factors
Internal factors are those factors that are related to the internal environment of the business. This
means that the issues that prevail within the business organization and upon which the
organization has control are included in this category. Internal factors further include the
following:
Price Adjustment Strategies For Small Business

 Marketing Objectives and Marketing Mix Strategies

 Costs
 Organizational Considerations

Each of these is discussed one by one.

Marketing Objectives & Marketing Mix Strategies
The objectives of the business serve as a basis for the development of proper marketing mix
strategy. Also, that includes in the price determination process. Those businesses that have kept
clear objectives feel comfortable in setting an effective price for their products or services. Since,
their prices are built on the ground of stated objectives. Following are some of the important
objectives that are covered by most businesses.
Survival
In this objective the main purpose of the business is survival in the market. The profit
maximization purpose becomes a secondary importance for such a business. Because its survival
is at stake due to unfavorable market conditions like tough competition, changes in tastes of
customers etc. In this case the business tries to keep its price low. So, that a sufficient proportion
of its product or service should be sold.
Profit Maximization
Another important objective is the profit maximization that is employed by many businesses. Such
businesses count the costs and demand of their products or services and set different prices. From
these price combinations, a business chooses the price that can give maximum profit, return on
investment or cash flow. This objective is beneficial for the short run and it neglects the long term
future of the business. Some businesses try to increase their market share for the purpose of
getting the highest profit. Because their management believed that higher market share leads to
lower cost and hence higher profits. Businesses adopting such a strategy also keep their prices
low.
Product Quality Leadership
A business can set its basic objective as the product quality leadership in the market. For this
purpose, such a business keeps its price higher. To cover the higher performance of its product
along with the costs incurred on research and development.
Price can be used to accomplish other objectives for a business. Examples include lowering of
price to avoid increasing competition, keep prices competitive. To make the market stable and
avoid government intervention. Also, to increase demand by lowering prices etc. In short, the
decisions taken in respect of price affect other marketing mix variable decisions. So, all of these
decisions should be consistent with one another to make a marketing program effective. The
business should also keep its product as differentiated and set a relatively high price for the
uniqueness of its product. In this way price is based on many non-pricing factors.
Costs
Cost is the fundamental element in setting prices for a product or service. There is simple rule of
the business charges. Such prices that should not only cover all of the costs incurred in
manufacturing, distribution and promotion of the product or service. However, also provide a fair
return on the invested money. If a business has low costs, then it can increase its sales and profit
by lowering the price of its product.
Kinds of Costs
Generally there are two major types of costs which are as follows:
a) Fixed Cost
b) Variable Cost
Fixed Cost
The fixed cost is such a cost that remains fixed and does not change with the changing level of
production or sales. Since, the total fixed cost remains the same but fixed cost per unit may
change. The example includes rent paid for the building, interest paid on loan, salaries to
employee staff etc.
Variable Cost
The variable cost is that kind of cost which changes with the change in the level of production and
sales. Although the total variable cost changes but the unit variable cost remains the same. For
example, each car produced includes the variable cost of tires, metal sheets, Misc. items etc. The
change with the increase or decrease in the quantity of production and sales.
Management of the business should ascertain different levels of costs with respect to different
levels of production and sales. So, that the lowest cost can be obtained for the determination of
effective prices for the manufactured products or services.
Organizational Considerations
This factor includes the fact that who should be given the responsibility to set the price within the
organization. There are many ways to deal with such an issue. In smaller businesses, top
management is responsible for setting the price of the product. On the other hand, in large
organizations product line managers or divisional managers have the authority to set prices for the
product or service. In case of industrial markets, salespersons handle the pricing of products by
negotiating with the customers. If certain price sensitive industries have a separate pricing
department that can either directly determine the best prices. In some firms, top management like
the proposed prices of the lower level employees like salespersons etc.
External Factors
External Factors include factors that are related to the external environment of the business. The
business has less control over these variables of the external environment. Following are included
in this category:
1) The Market and Demand
2) Costs, Prices and Offering of Competitors
The Market and Demand
We have already discussed that the lower limits of price are determined by the costs incurred. On
the other hand the upper limits are determined by the demand and market elements. Price is
balanced by the benefits of owning the relative product or service by consumer and industrial
customers. For this purpose the price and demand relationship for a product is essential to be
understood before setting its price.
Pricing in different Markets
Different market conditions require different sets of pricing strategies. Generally there are
following four types of markets:
1) Pure Competition
2) Monopolistic Competition
3) Oligopolistic Competition
4) Monopoly
5) Consumer perception about value and price
6) Price Demand Relationship
Pure Competition
In case of pure competition in the market, there are many buyers and sellers in the markets
dealing with uniform commodities like wheat etc. There is one ongoing price in the whole market
and no single buyer or seller can affect this price. Because the customers can easily obtain their
required quantity at the ongoing price of the market. So, no seller can charge higher prices.
Similarly, no seller can charge a lower price because he can sell all his offered quantity in the
market. In case of the rise of the price or profit in the market, new sellers are attracted to enter
the market. In pure competition, pricing, sales promotion, new product development and
marketing research are not supported. Specifically, the sellers on the market do involve in
preparation of marketing strategies.
Monopolistic Competition
In case of monopolistic competition there are many sellers and buyers who offer their products
not at a single price but at a range of prices. The difference in the price range is due to the
differentiated product or service offering by the sellers. Customers can feel the difference between
the products and hence pay different prices for them. These differences can be in shape of
features, quality or style etc. So in this kind of market businesses spend more time. Also, money
on differentiating their product or services in the shape of sales promotion, advertising etc. A
single business is not affected by the marketing strategies of its competitors because there are
many competitors in the market.
Oligopolistic Competition
Another factor affecting pricing decisions is oligopolistic. In an oligopolistic market, there are few
sellers and buyers which are conscious about the pricing and other marketing strategies of
competitors. The offered products are either uniform or differentiated. It is difficult for new sellers
to enter the market. A certain change in the price of a single firm affects its own soil in a negative
way. Even if a seller lowers its price; its competitors also decrease their price. This means that the
benefits are only for a short while.
Monopoly
Another market condition is monopoly in which there is only a single seller who can offer its
products or services at different rates. As the seller is single and the buyers are much more,
therefore the seller charges a relatively higher price. Because there is no fear of competition. In
case of regulated monopoly, the seller can charge only a fair price. However, in case of
unregulated monopoly the seller has freedom to charge extra for its offering. Mostly the monopoly
firm keeps its price low for a number of reasons like quick penetration in the market, government
intervention etc.
Consumer Perception about Value and Price
The bottom reality in the pricing decision is that the customers are the final authority who
determines the price of a product or service. It is obvious that the consumers pay the price for the
exchange of the benefits that they avail by using the relative product. So businesses should focus
on the pricing that is consumer oriented. While they try to determine how much the consumer
would be willing to pay for how much benefit of a certain product.
Price Demand Relationship
Businesses should also consider the important relationship between the price of a product or
service and its demand. Generally price and demand is inversely related. That means, the increase
in the price would lead to the decrease in the demand for that product and vice versa. The reason
behind this inverse relationship is that the customers have limited resources for the fulfillment of
their demands.
In some cases the price and demand show the direct relationship. The increase in the price would
lead to the increase in the demand of that product in the market. However, this only happens with
the prestigious products where increased price means increased quality.
The business management should also consider the elasticity of the demand of their offering
product while setting its price.
Costs, Prices & Offering of Competitors
There are some external factors affecting pricing decisions of the business. Such as the costs,
price and offering of the competitors as compared to its own cost, price & offering. This means
that the management of the business should take into account the change in the price. Although,
offering of the competitors and take steps accordingly.
Other external factors affecting pricing decisions are also important to be considered. While
determining a price for a product or service, like economic conditions of the country, government
rules and regulations etc.

3(b)
Enterprises Are Sensing The Need To
Become More Integrated In Their
Marketing Communication Efforts
Yes, that is correct. Today, enterprises are realizing that integrating their
marketing communication efforts is crucial to achieve a consistent and
effective marketing message. Integrated marketing communication (IMC)
involves coordinating all aspects of a company's promotional mix, including
advertising, sales promotion, public relations, personal selling, and direct
marketing, to create a unified and compelling message that is communicated
to the target audience.
IMC allows a company to create a seamless and consistent brand image
across all communication channels, such as social media, television, radio,
print, and digital advertising. By using IMC, a company can ensure that its
brand message is communicated effectively to its target audience, resulting in
increased brand recognition, customer loyalty, and sales.
Moreover, with the growing importance of digital media and the internet, it has
become essential for enterprises to integrate their traditional marketing
communication efforts with digital marketing communication channels. This
includes using social media platforms, email marketing, and search engine
optimization (SEO) to reach customers and communicate with them in a
targeted and effective way.
Overall, integrating marketing communication efforts can help a company to
maximize the impact of its promotional activities, strengthen its brand image,
and increase its revenue and profits. As a result, many companies are
investing in developing and implementing integrated marketing communication
strategies to stay competitive and meet the evolving needs and preferences of
their target customers.

What Is The Need For Integrated Marketing

Communications
The need for integrated marketing communication (IMC) arises due to several
factors. Here are some of the reasons why enterprises should consider
implementing IMC:
Fragmentation of media: Today, customers consume media through a
variety of channels, including social media, television, radio, print, and
digital advertising. As a result, it has become more challenging for
companies to reach their target audience with a consistent message.
IMC helps to coordinate all promotional activities across all
communication channels to create a unified and compelling message.
Increased competition: The business environment is becoming more
competitive, and it is increasingly difficult for companies to differentiate
themselves from their competitors. By integrating all aspects of their
promotional mix, a company can create a unique brand image and stand
out from the competition.
Evolving customer preferences: Today's customers are more
informed, tech-savvy, and demanding than ever before. They expect
companies to provide them with relevant and personalized
 communication. IMC helps to create a consistent and targeted message
that resonates with customers.
Increased cost-effectiveness: By integrating all promotional activities, a
company can reduce duplication of effort, minimize waste, and optimize
their promotional mix. This can result in cost savings and improved cost-
effectiveness.
Measurable results: IMC allows companies to measure the
effectiveness of their promotional activities and adjust their strategies
accordingly. By using analytics and metrics, a company can track the
impact of its promotional activities and make data-driven decisions.
In summary, IMC is essential for enterprises to achieve a consistent and
effective marketing message, create a unique brand image, stand out from the
competition, and meet the evolving needs and preferences of their target
customers. By implementing IMC, a company can improve its cost-
effectiveness, measure the impact of its promotional activities, and ultimately
increase its revenue and profits.
What Do You Mean By Integrated Marketing
Communication
Integrated Marketing Communication (IMC) refers to the coordination and
integration of various marketing communication channels and tools to promote
a consistent and compelling brand message to a target audience. The goal of
IMC is to create a seamless and unified brand experience across all channels
of communication, including advertising, public relations, personal selling,
sales promotion, direct marketing, and digital marketing.
By utilizing an integrated approach, a company can ensure that all marketing
communication efforts are working together in a coordinated and synergistic
way, leading to greater effectiveness and efficiency. For example, a brand
might use consistent messaging, visuals, and tone of voice across its website,
social media, advertising campaigns, and in-store displays to create a
cohesive brand image and reinforce key brand attributes.
Overall, IMC aims to deliver a unified and consistent brand message to
consumers across all touchpoints, which can help to build brand awareness,
increase customer loyalty, and drive sales.
Do you like Pepsi better than Coke? It could be the sweet aftertaste of Pepsi
that gets you every time, but there’s an equal chance that it really is the “fun
and young” feeling that you take in with every sip. Along with the delicious cola
that sells by the billions every year, Pepsi is also selling its consumers a
message – the fun people drink Pepsi, and the young swear by it. And Pepsi
has maintained this consistent messaging to its consumers not for years but
for decades. Pepsi commercials are the definition of integrated marketing
communication, and the “Cola War” – as marketing maestros Jack Trout and
Al Ries term it – is nothing but their way of sending a consistent, powerful, and
effective message to win over consumers’ loyalty.
The advancement of technology and its implementation in various forms have
changed the way businesses function. It has impacted different business
domains like marketing, communication, and customer relationship.
Entrepreneurs realized that the need of the hour is to create coordinated and
consistent messages through various channels of communication. This led to
the emergence of integrated marketing communication (IMC).
In today’s market, innumerable marketing mediums exist for entrepreneurs to
pick from. Simultaneously, there are several marketing campaigns taking place
for a single product/service of a brand. As such, it becomes difficult for a brand
to maintain consistent messaging and uniform marketing communication
throughout the organization. This is where integrated marketing
communication comes in.

4(a)

What Is Advertising? – Examples,

Objectives, & Importance
A 30-second spot, a catchy jingle, and a clever slogan. But there’s more to
advertising. An average human is exposed to around 5000 advertising messages
in a day.
Advertisements come in many shapes, sizes, and forms. But what exactly is
advertising? Why is advertising important? What are its advantages and
disadvantages?
What Is Advertising?
Advertising is the action of calling public attention to an offering through paid
announcements by an identified sponsor.
According to Kotler –
Advertising is any paid form of non-personal presentation & promotion of
ideas, goods, or services by an identified sponsor.
According to the Advertising Association of the UK –
Advertising is any communication, usually paid-for, specifically intended
to inform and/or influence one or more people.
Simply, advertising is a process of developing a paid communication message
intended to inform people about something or to influence them to buy, try, or do
something.
Characteristics Of Advertising
 Paid Form: Advertising requires the advertiser (also called sponsor) to pay
to create an advertising message, buy advertising media slot, and monitor
advertising efforts.
 Tool For Promotion: Advertising is an element of the promotion mix of an
organisation.
 One Way Communication: Advertising is a one-way communication where
brands communicate to the customers through different mediums.
 Personal Or Non-Personal: Advertising can be non-personal as in the
case of TV, radio, or newspaper advertisements, or highly personal as in
the case of social media and other cookie-based advertisements.

Types Of Advertising
Advertising activities can be categorised into above-the-line, below-the-line, and
through-the-line advertising according to their penetration level.

 Above-the-line advertising includes activities that are largely non-

targeted and have a wide reach. Examples of above-the-line advertising are
TV, radio, & newspaper advertisements.
 Below-the-line advertising includes conversion-focused activities which
are directed toward a specific target group. Examples of below-the-line
advertising are billboards, sponsorships, in-store advertising, etc.
 Through-the-line advertising includes activities which involve the use of
both ATL & BTL strategies simultaneously. These are directed towards
brand building and conversions and make use of targeted (personalised)
advertisement strategies. Examples of through-the-line advertising are
cookie-based advertising, digital marketing strategies, etc.

Advertising activities can also be categorised into 5 types based on the

advertising medium used. These types of advertisements are:

 Print Advertising: Newspaper, magazines, & brochure advertisements,

etc.
 Broadcast Advertising: Television and radio advertisements.
 Outdoor Advertising: Hoardings, banners, flags, wraps, etc.
 Digital Advertising: Advertisements displayed over the internet and digital
devices.
  Product/Brand Integration: Product placements in entertainment media
like TV shows, YouTube videos, etc.

What Are The Objectives Of Advertising?

There are 3 main objectives of advertising – to inform about the brand or offering,
to persuade to buy or perform a task and to remind and reinforce the brand
message.
To Inform
Advertisements are used to increase brand awareness and brand exposure in the
target market. Informing potential customers about the brand and its products is
the first step toward attaining business goals.
To Persuade
Persuading customers to perform a particular task is a prominent objective of
advertising. The tasks may involve buying or trying the products and services
offered, forming a brand image, developing a favourable attitude towards the
brand etc.
To Remind
Another objective of advertising is to reinforce the brand message and to
reassure the existing and potential customers about the brand vision. Advertising
helps the brand to maintain top-of-mind awareness and to avoid competitors
stealing the customers. This also helps in the word of mouth marketing.
Other objectives of advertising are subsets of these three objectives. These
subsets are:

 Brand building
 Increasing sales
 Creating demand
 Engagement
 Expanding customer base
 Changing customers’ attitudes, etc.

Importance Of Advertising
To The Customers
 Convenience: Targeted informative advertisements make the customer’s
decision-making process easier as they get to know what suits their
requirements and budget.
 Awareness: Advertising educates the customers about different products
available in the market and their features. This knowledge helps customers
compare different products and choose the best product for them.
  Better Quality: Only brands advertise themselves and their products.
There are no advertisements for unbranded products. This ensures better
customer quality and a good business model as no brand wants to waste
money on false advertising.

To The Business
 Awareness: Advertising increases brand and product awareness among
the people belonging to the target market.
 Brand Image: Clever advertising helps the business to form the desired
brand image and brand personality in the minds of the customers.
 Product Differentiation: Advertising helps the business differentiate its
product from competitors’ and communicate its features and advantages to
the target audience.
 Increases Goodwill: Advertising reiterates brand vision and increases the
brand’s goodwill among its customers.
 Value For Money: Advertising delivers the message to a wide
audience and tends to be value for money when compared to other
elements of the promotion mix.

Advantages Of Advertising
 Reduces Per-Unit Cost: The wide appeal of advertisements increases the
demand for the product which benefits the organisation as it capitalises on
the economies of scale.
 Helps In Brand Building: Advertisements work effectively in brand
building. Brands that advertise are preferred over those which doesn’t.
 Helps In Launching New Product: Launching a new product is easy when it
is backed by an advertisement.
 Boosts Up Existing Customers’ Confidence In The Brand: Advertisements
boost existing customers’ confidence in the brand as they feel pride when
they see an advertisement of the product or the brand they use.
 Helps In Reducing Customer Turnover: Strategic advertisements for new
offers and better service help reduce customer turnover.
 Attracts New Customers: Attractive advertisements help the brand in
gaining new customers and expanding the business.
 Educates The Customers: Advertisements inform the customers about
different products existing in the market and also educate them on what
they should look for in an apt product.

Disadvantages Of Advertising
  Increases The Costs: Advertising is an expense to the business and is
added to the cost of the product. This cost is eventually borne by the end
consumer.
 Confuses The Buyer: Too many advertisements with similar claims often
confuse the buyer about what to buy and whether they should buy the
product or not.
 Is Sometimes Misleading: Some advertisements use smart strategies to
mislead the customers.
 Only For Big Businesses: Advertising is costly, and only big businesses
can afford it. This puts small businesses out of competition with big
businesses that get to enjoy a monopoly in the market.
 Encourages The Sale Of Inferior Products: Effective advertisements
even lead to the sale of inferior products which aren’t good for the
consumers.

Advertising Examples
We are surrounded by advertisements. From TV to our mobile phones, we
encounter advertisements everywhere. Following are a few examples of
advertising.
TV Advertisements Example
Coca-Cola’s ‘I’d like to buy the world a Coke’, aired in 1971, is the world’s most
famous TV advertisement.

Print Advertisements Example

Jeep’s ‘See whatever you want to see’ is a perfect example of a great print
advertisement.

Radio Advertisements Example

Radio advertisements get more attention among the target customers and are
also played more often. Here’s an example of a radio ad by Dove.
Digital Advertisements Example
Digital advertisements are advertisements made especially for the internet and
digital devices users. The primary objective of digital ads is to drive traffic to
business’s URLs. These ads can be video, image, or text ads.
Digital video ads aren’t restricted to a 30-second or 50-second slot. An example
of a digital video ad is this advertisement by Airbnb.

One might see digital image ads while visiting websites like Feedough,
Facebook, and Twitter. Here is an example:

Outdoor Advertising Example

These include hoardings, banners, flags, wraps, etc. An example of an outdoor
advertisement is this hoarding by Audi.

Advertising vs Public Relations

While both advertising and public relations are an essential part of the promotional mix,
there are some key differences between them.
Advertising Public Relations
Advertising is a paid form of Public relations is a strategic communication
promotion that uses persuasive process that builds mutually beneficial
Definition
techniques to influence relationships between an organisation and its
consumers’ buying behaviour. public.
The objectives of advertising The objectives of public relations are to
are to raise awareness about a build goodwill and understanding between
Objectives product or service, to persuade an organisation and its public, to promote
customers to buy it, and build the organisation’s products or services, and
brand loyalty. to influence behaviour.
Advertising is important
Public relations is important because it helps
because it helps businesses
Importance businesses build positive relationships with
promote their products or
their customers and other stakeholders.
services to a wide audience.
Public relations is earned media, meaning
businesses try to earn positive coverage from
Paid or Advertising is usually paid for
journalists and other influencers. This can be
earned by businesses.
done through PR campaigns, events, and
good old-fashioned media relations.

4(b)
Explain The Nature And Role Of
Personal Selling. Discuss The Steps
Involved In The Selling Process By
Taking An Example Of A Financial
Software Product For A Medium
Enterprises
Personal selling is a form of communication that involves face-to-face
interaction between a salesperson and a potential customer. It is a promotional
technique used by companies to persuade potential customers to buy their
products or services. The primary goal of personal selling is to build
relationships with customers, understand their needs and preferences, and
offer solutions that meet those needs. Personal selling is particularly important
in B2B (business-to-business) transactions, where the value of the purchase is
high and the buying decision is complex.
The role of personal selling is to help customers make informed decisions
about a company's products or services. It involves identifying the needs of the
customer, demonstrating how the product or service meets those needs, and
addressing any concerns or objections that the customer may have. Personal
selling also plays a crucial role in building long-term relationships with
customers, which can lead to repeat business and positive word-of-mouth
referrals.
The Steps Involved In The Selling Process Can Be Summarized As Follows:
Prospecting: The first step is to identify potential customers who may be
interested in purchasing the financial software product for medium
enterprises. This can be done through various methods, such as online
research, referrals, or purchasing lead lists.
Pre-approach: Once potential customers have been identified, the
salesperson needs to research their specific needs and preferences, and
prepare a personalized sales pitch.
Approach: This is the initial contact with the potential customer, where
the salesperson introduces themselves, establishes rapport, and explains
the purpose of their visit.
Presentation: The salesperson then presents the features and benefits
of the financial software product, highlighting how it can solve the
customer's specific pain points.
Handling objections: The customer may have concerns or objections
that need to be addressed, such as cost or compatibility with existing
software. The salesperson needs to listen to the customer's concerns
and provide solutions that address them.
Closing the sale: Once the objections have been addressed, the
salesperson can ask for the sale and close the deal.
Follow-up: After the sale has been made, the salesperson should follow
up with the customer to ensure their satisfaction and offer any additional
support or training that may be needed.
To illustrate the steps involved in the selling process, let's consider an example
of a financial software product for medium enterprises. The salesperson could
start by identifying potential customers through online research and referrals
from existing clients. They could then conduct a pre-approach by researching
the specific needs and pain points of each potential customer and preparing a
customized sales pitch.
The approach could be made by scheduling a meeting with the potential
customer, either in person or over the phone. During the presentation, the
salesperson would explain the features and benefits of the financial software
product, such as its ability to streamline accounting processes, generate
detailed financial reports, and reduce the risk of human error.
If the customer expresses concerns about the cost of the software, the
salesperson could highlight the long-term cost savings and increased
efficiency that the software would provide. If the customer is worried about
compatibility with existing software, the salesperson could offer to conduct a
compatibility assessment and provide support during the integration process.
Once the objections have been addressed, the salesperson could ask for the
sale and close the deal. After the sale has been made, the salesperson would
follow up with the customer to ensure their satisfaction and offer any additional
support or training that may be needed.
Overall, personal selling plays a critical role in helping companies build
relationships with customers, understand their needs and preferences, and
offer solutions that meet those needs. By following the steps involved in the
selling process, salespeople can successfully sell financial software products
to medium enterprises and build long-term relationships with their customers.

What Is The Nature And Role Of Personal Selling

The nature of personal selling is that it is a form of communication that
involves direct interaction between a salesperson and a potential customer.
Unlike other forms of marketing communication, such as advertising or
promotions, personal selling allows for personalized, one-on-one
communication that can address the specific needs and concerns of the
customer. The salesperson can tailor their message and approach to each
individual customer, based on their unique preferences, needs, and buying
behavior.
The role of personal selling is to help customers make informed decisions
about a company's products or services. Personal selling involves building
relationships with customers, understanding their needs and preferences, and
offering solutions that meet those needs. Personal selling can be particularly
effective in B2B (business-to-business) transactions, where the value of the
purchase is high and the buying decision is complex. By establishing trust and
credibility with potential customers, salespeople can help to create a positive
image of the company and its products or services.
The primary goal of personal selling is to persuade potential customers to buy
a company's products or services. However, personal selling is not just about
making a sale - it is also about building long-term relationships with customers.
By providing excellent customer service and support, salespeople can help to
create loyal customers who will continue to do business with the company in
the future. Additionally, personal selling can generate positive word-of-mouth
referrals, as satisfied customers share their positive experiences with others in
their network.
Overall, the nature and role of personal selling is to provide personalized, one-
on-one communication that helps customers make informed decisions about a
company's products or services. Through building relationships, establishing
trust, and providing excellent customer service, personal selling can help
companies to generate sales, build customer loyalty, and create positive word-
of-mouth referrals.
What Is The Nature And Role Of Selling In
Marketing
Selling is a critical component of the marketing mix, which includes product,
price, promotion, and place. The nature of selling in marketing is that it is a
process of persuading potential customers to purchase a company's products
or services. It involves identifying the needs and wants of potential customers,
creating a value proposition that meets those needs and wants, and
convincing customers to make a purchase.
The role of selling in marketing is to create and maintain relationships with
customers. Selling involves not only persuading customers to make a
purchase but also providing excellent customer service and support. By
establishing trust and credibility with potential customers, salespeople can help
to create a positive image of the company and its products or services.
Additionally, by providing ongoing support and assistance after the sale,
salespeople can create loyal customers who will continue to do business with
the company in the future.
Selling also plays a crucial role in generating revenue for the company.
Without sales, the company cannot generate the revenue it needs to sustain
and grow its business. By identifying potential customers and persuading them
to make a purchase, salespeople help to generate the revenue that the
company needs to invest in new products, marketing initiatives, and other
areas of the business.
In addition to generating revenue, selling also provides valuable feedback to
the company. By interacting directly with customers, salespeople can learn
about their needs and preferences, as well as their feedback and concerns
about the company's products or services. This feedback can be used to
improve the company's products or services, as well as its overall marketing
strategy.
Overall, the nature and role of selling in marketing is to create and maintain
relationships with customers, generate revenue for the company, and provide
valuable feedback to the company. By persuading potential customers to
make a purchase and providing ongoing support and assistance, salespeople
can help to create loyal customers who will continue to do business with the
company in the future.
What Is The Nature Of Selling Process
The nature of the selling process refers to the steps that a salesperson goes
through in order to persuade a potential customer to make a purchase. The
selling process typically involves several stages, each of which requires
different skills and strategies on the part of the salesperson. The specific
nature of the selling process can vary depending on the product or service
being sold, as well as the needs and preferences of the customer.
At A High Level, The Nature Of The Selling Process Can Be Broken Down Into Several
Stages:
Prospecting: This stage involves identifying potential customers who
may be interested in the product or service being sold. This can involve
researching leads, cold calling, networking, or other methods of reaching
out to potential customers.
Pre-approach: In this stage, the salesperson prepares for the initial
contact with the potential customer. This may involve researching the
customer's needs and preferences, preparing a sales pitch, and
gathering any necessary materials or information.
Approach: This is the stage where the salesperson makes the initial
contact with the potential customer. The goal of the approach is to
establish a rapport with the customer and to begin to identify their needs
and preferences.
Presentation: In this stage, the salesperson presents the product or
service to the customer in a way that highlights its benefits and
addresses the customer's needs and concerns. This may involve
demonstrating the product, providing examples of its use, or discussing
how it can solve the customer's problems.