Marketing Management

1.What is your understanding about marketing?

Marketing is the process of identifying, anticipating, and satisfying customer needs through the
development, promotion, and distribution of products or services. It involves understanding the market,
creating value for customers, and building strong customer relationships to drive profitable growth. The
key components of marketing include:

1. Market Research: Gathering and analyzing information about the market, including customer
preferences, competition, and market trends.

2. Product Development: Designing and developing products or services that meet customer
needs and preferences.

3. Pricing Strategy: Setting prices that reflect the value of the product, are competitive, and align
with the target market's willingness to pay.
4. Promotion: Communicating the benefits of the product or service to the target audience
through advertising, public relations, social media, and other channels.

5. Distribution: Ensuring that the product or service is available to customers at the right place and
time, which can involve logistics, supply chain management, and retail strategies.
6. Sales: Directly engaging with customers to encourage purchases and build long-term
relationships.

2. What are the scope of Marketing Management?

Marketing management involves a holistic approach to creating value for customers and achieving
sustainable business growth through strategic planning and execution. The scope of marketing
management encompasses a wide range of activities aimed at meeting customer needs and achieving
organizational goals. Here are the key areas:

1. Market Research and Analysis:

o Identifying market opportunities and threats.

o Understanding customer needs, preferences, and behavior.

o Analyzing competitors and market trends.

2. Product Management:

o Developing new products or improving existing ones.

o Managing the product lifecycle from introduction to decline.

o Ensuring product quality and innovation.

3. Brand Management:

o Building and maintaining a strong brand identity.

o Enhancing brand equity through consistent messaging and customer experiences.

o Positioning the brand in the market effectively.

4. Pricing Strategy:

o Determining the right pricing model to attract customers while maximizing profits.

o Implementing pricing tactics such as discounts, bundling, and dynamic pricing.

o Monitoring and adjusting prices in response to market conditions.

5. Promotional Activities:

o Planning and executing advertising campaigns.

o Leveraging digital marketing, social media, and content marketing.

o Utilizing public relations, sales promotions, and direct marketing.

6. Sales Management:

o Developing sales strategies and setting sales targets.

o Managing the sales force and ensuring effective customer interactions.

o Monitoring sales performance and implementing corrective actions.

7. Distribution and Logistics:

o Selecting distribution channels and managing relationships with intermediaries.

o Ensuring efficient supply chain and inventory management.

o Providing effective customer service and support.

8. Customer Relationship Management (CRM):

o Building and nurturing long-term relationships with customers.

o Implementing loyalty programs and personalized marketing.

o Utilizing customer feedback to improve products and services.

9. Marketing Planning and Strategy:

o Developing comprehensive marketing plans and setting objectives.

o Allocating resources and budgeting for marketing activities.

o Monitoring and evaluating marketing performance to ensure goals are met.

3. Different needs of Marketing?

Marketing addresses a variety of needs, which can be categorized into several types. Understanding
these needs helps businesses tailor their marketing strategies to better meet customer demands and
achieve their objectives. Here are the different needs of marketing:

1. Functional Needs:

o These are practical, utilitarian needs that a product or service fulfills.

o Examples include the need for transportation (cars, bicycles), communication (phones,
internet), and basic utilities (electricity, water).

2. Social Needs:

o Social needs pertain to the desire for belonging, acceptance, and social interaction.

o Marketing can address these needs by promoting products that facilitate social
connections, like social media platforms, fashion, and lifestyle products.

3. Emotional Needs:

o Emotional needs relate to feelings and psychological desires, such as happiness, security,
and self-esteem.

o Brands often connect with customers emotionally through storytelling, brand values,
and advertising that evokes specific emotions.

4. Ego Needs (Esteem Needs):

o These needs are related to self-respect, recognition, and status.

o Products that signify achievement or exclusivity, such as luxury goods, high-end

electronics, and prestigious services, cater to ego needs.

5. Self-Actualization Needs:

o This is the need for personal growth, self-improvement, and fulfillment of one's
potential.

o Marketing in this area focuses on products and services that help individuals achieve
their goals, such as educational programs, personal development tools, and wellness
products.

6. Safety and Security Needs:

o These needs include the desire for safety, stability, and protection.
o Products like insurance, home security systems, and health-related services address
these needs.

7. Physiological Needs:

o These are basic survival needs, such as food, water, shelter, and clothing.
 o Marketing for these needs often emphasizes reliability, quality, and accessibility.

8. Latent Needs:

o These are needs that customers are not explicitly aware of until they encounter a
product or service that addresses them.

o Innovations and new technologies often reveal latent needs by offering solutions to
problems customers didn't realize they had.

9. Expressed Needs:

o These are needs that customers have clearly identified and expressed.

o Market research and customer feedback help businesses understand and address these
needs directly.

10. Unexpressed Needs:

o These needs are those that customers have but do not express due to various reasons,
such as not knowing how to articulate them or not realizing they have them.

o Identifying unexpressed needs requires deep customer insights and empathy.

11. Cultural Needs:

o These needs arise from the cultural background and social norms of the target audience.

o Marketing that aligns with cultural values and traditions can effectively meet these
needs.

4.Different types of Marketing?

There are numerous types of marketing, each with distinct strategies and techniques tailored to specific
goals, audiences, and contexts. Here are some key types of marketing:

1. Digital Marketing:

o Search Engine Optimization (SEO): Improving a website's visibility in search engine

results.

o Content Marketing: Creating and distributing valuable content to attract and engage a
target audience.

o Social Media Marketing: Using platforms like Facebook, Instagram, Twitter, and LinkedIn
to promote products and engage with customers.

o Email Marketing: Sending targeted emails to nurture leads and communicate with
customers.

o Pay-Per-Click (PPC) Advertising: Paying for ads to appear on search engines and other
websites.

2. Traditional Marketing:
 o Print Advertising: Ads in newspapers, magazines, brochures, and flyers.

o Broadcast Advertising: Commercials on television and radio.

o Outdoor Advertising: Billboards, transit ads, and posters.

o Direct Mail: Sending promotional materials directly to consumers' homes.

3. Inbound Marketing:

o Attracting customers by creating valuable content and experiences tailored to them.

o Methods include blogs, SEO, social media, and content marketing.

4. Outbound Marketing:

o Pushing messages out to a broad audience through techniques like cold calling, email
blasts, and direct mail campaigns.

5. Content Marketing:

o Focuses on creating, publishing, and distributing content for a targeted audience online.

o Content can include blog posts, videos, infographics, podcasts, and whitepapers.

6. Social Media Marketing:

o Using social media platforms to promote products and engage with customers.

o Includes organic posts and paid advertising.

7. Email Marketing:

o Sending emails to prospects and customers to promote products, provide updates, and
build relationships.

o Includes newsletters, promotional emails, and automated email campaigns.

8. Influencer Marketing:

o Partnering with influencers who have a significant following to promote products to

their audience.

o Influencers can be celebrities, industry experts, or social media personalities.

9. Affiliate Marketing:

o Collaborating with affiliates who promote your products in exchange for a commission
on sales generated through their referrals.

10. Event Marketing:

o Promoting products or services through events such as trade shows, conferences, and
webinars.
 o Includes both physical and virtual events.

11. Experiential Marketing:

o Creating immersive experiences that allow customers to interact with a brand in a

memorable way.

o Often involves live events, pop-up shops, and interactive displays.

12. Guerrilla Marketing:

o Using unconventional, low-cost tactics to create high-impact marketing campaigns.

o Examples include flash mobs, street art, and viral videos.

13. Relationship Marketing:

o Focusing on building long-term relationships with customers to foster loyalty and repeat
business.

o Includes personalized communication, loyalty programs, and customer service

excellence.

14. B2B Marketing (Business-to-Business):

o Marketing products or services to other businesses rather than individual consumers.

o Involves trade shows, industry publications, and professional networks.

15. B2C Marketing (Business-to-Consumer):

o Marketing products or services directly to individual consumers.

o Includes retail marketing, digital advertising, and direct marketing.

16. Personalized Marketing:

o Tailoring marketing messages and offers to individual consumers based on their
preferences, behaviors, and past interactions.

o Uses data and analytics to create personalized experiences.

17. Global Marketing:

o Developing and implementing marketing strategies to reach international audiences.

o Involves adapting marketing tactics to different cultural, legal, and economic

environments.
5. Understanding on Holistic Marketing. Give examples

Holistic marketing is an approach that considers a business and all its parts as a unified entity and
integrates all aspects of marketing to ensure a consistent and cohesive strategy. This approach
emphasizes the importance of a comprehensive, interconnected view of marketing activities to create
value for customers and stakeholders. Components of Holistic Marketing:

1. Internal Marketing:

o Ensuring that all employees are motivated, aligned with the company's goals, and
understand their roles in delivering customer satisfaction.

o Example: Google fosters a strong internal culture with excellent employee benefits, clear
communication of goals, and opportunities for professional development.

2. Integrated Marketing:

o Coordinating all marketing activities and channels to deliver a consistent message and
unified brand experience.

o Example: Apple seamlessly integrates its marketing efforts across advertising, online
platforms, retail stores, and customer service to provide a consistent and high-quality
brand experience.

3. Relationship Marketing:

o Building and maintaining long-term relationships with customers, suppliers, partners,

and other stakeholders.

o Example: Amazon's Prime membership program focuses on creating value for customers
through benefits like free shipping, exclusive deals, and access to streaming services,
fostering long-term loyalty.

4. Socially Responsible Marketing:

o Considering ethical, environmental, legal, and social impacts of marketing activities and
making decisions that benefit society.

o Example: Patagonia emphasizes sustainability and environmental responsibility in its

marketing campaigns, promoting eco-friendly products and practices.

Examples of Holistic Marketing:

 Coca-Cola's "Share a Coke" campaign is a prime example of holistic marketing. The campaign
integrated personalized bottles, social media engagement, and traditional advertising to create a
cohesive and engaging customer experience. Internally, the company ensured all employees
understood the campaign's objectives and could communicate the message consistently.
 Nike’s “Just Do It” campaign embodies holistic marketing by integrating advertising, digital
marketing, social media, and in-store experiences. Nike also emphasizes internal marketing by
fostering a strong corporate culture and relationship marketing by creating communities around
 sports and fitness. Their commitment to sustainability and social issues also highlights their
focus on socially responsible marketing.

6. Understanding on Selling Concept. Give examples

The selling concept is a marketing approach that focuses on aggressively promoting and selling products
to consumers, often regardless of their needs or desires. The primary goal is to maximize sales volume
rather than ensuring customer satisfaction or building long-term relationships. This concept is based on
the idea that consumers need to be persuaded to buy products through heavy advertising and sales
tactics.

Key Characteristics of the Selling Concept:

1. Focus on Sales Volume:

o The main objective is to sell as much as possible.

o Emphasis on high-pressure selling techniques to achieve sales targets.

2. Short-Term Perspective:

o Concentrates on immediate sales rather than long-term customer relationships.

o Less concern for customer satisfaction and repeat business.

3. Aggressive Promotion:

o Heavy use of advertising, sales promotions, and personal selling to persuade customers
to buy.

o Often involves convincing customers to buy products they might not need.

4. Product-Centered:
o The focus is on the product itself, rather than understanding and fulfilling customer
needs.

Examples of the Selling Concept:

1. Telemarketing:

o Companies often use telemarketing to make unsolicited calls to potential customers,

aggressively promoting products or services. For instance, credit card companies or
insurance firms frequently use this method to increase sales.

2. Door-to-Door Sales:

o Salespeople go door-to-door attempting to sell products directly to consumers.

Examples include vacuum cleaner sales representatives or magazine subscription sellers
who visit homes to pitch their products.

3. High-Pressure Car Sales:

 o Car dealerships often use high-pressure sales tactics to close deals. Salespeople may
push customers to make quick decisions, offering limited-time discounts and
emphasizing the urgency of the purchase.

4. Infomercials:

o TV infomercials use persuasive techniques to encourage viewers to purchase products

immediately, often including limited-time offers and emphasizing the benefits in an
exaggerated manner.

7. What is Marketing Myopia. Give examples

Marketing myopia is a term coined by Theodore Levitt in a 1960 Harvard Business Review article. It refers
to a narrow-minded approach to marketing where companies focus on their products rather than the
needs and wants of their customers. This short-sightedness can lead to a failure to recognize and adapt
to market changes, ultimately harming the business.

Key Characteristics of Marketing Myopia:

1. Product-Centered Mindset:

o Companies focus more on selling products than understanding what customers actually
need.

o Innovation and development are driven by product features rather than customer
benefits.

2. Short-Term Focus:

o Emphasis on immediate sales and profits rather than long-term customer relationships
and satisfaction.

3. Neglect of Market Trends:

o Ignoring broader industry and market trends that could impact the business.

o Failure to anticipate changes in customer preferences and technological advancements.

4. Overconfidence in Existing Products:

o Belief that a good product will automatically sell itself.

o Lack of investment in marketing research and customer feedback.

Examples of Marketing Myopia:

1. Railroad Industry:
o Railroads in the early 20th century focused on the train business rather than the broader
transportation needs of people and goods. As a result, they failed to adapt to the rise of
cars, trucks, and airplanes, leading to a decline in their market share.

2. Kodak:
 o Kodak was once a dominant player in the film photography industry. However, it was
slow to recognize the shift to digital photography, clinging to its film business despite the
growing popularity of digital cameras. This delay in adaptation led to a significant loss of
market share and eventually bankruptcy.

3. Nokia:

o Nokia was a leader in the mobile phone market but failed to recognize the shift towards
smartphones. The company focused on traditional mobile phones while competitors like
Apple and Samsung innovated with smartphones, causing Nokia to lose its dominant
position in the market.

Avoiding Marketing Myopia:

 Focus on Customer Needs: Understand and prioritize what customers want and need.

 Embrace Change: Stay adaptable and open to new technologies and market trends.

 Invest in Market Research: Regularly gather and analyze customer feedback and market data.

 Think Long-Term: Build strategies that foster long-term customer relationships and sustainability

8. What is Niche Marketing. Give examples

Niche marketing is a strategy that targets a specific segment of the market with unique needs,
preferences, or demographics. Rather than catering to a broad audience, niche marketing focuses on a
narrowly defined group of potential customers. This approach allows businesses to better meet the
specialized needs of their target market, differentiate themselves from competitors, and potentially
achieve higher profitability.

Characteristics of Niche Marketing:

1. Specific Target Audience:

o Identifies a distinct group of consumers with specific interests, preferences, or

demographics.

o Example: Vegan cosmetics targeting consumers who prefer cruelty-free and plant-based
products.

2. Customized Products or Services:

o Develops offerings tailored to the unique needs and preferences of the niche market.

o Example: Luxury pet hotels offering specialized care and amenities for pampered pets.

3. Focused Marketing Strategy:

o Uses precise marketing messages and channels to reach the niche audience effectively.
 o Example: Online forums and communities for niche hobbyists, such as model train
enthusiasts.

4. Higher Customer Loyalty:

o Builds strong relationships and loyalty within the niche market due to personalized
offerings.

o Example: Subscription boxes delivering curated products for specific hobbies or

interests.

Examples of Niche Marketing:

1. Toms Shoes:

o Toms Shoes started with a niche market of socially conscious consumers who wanted to
buy shoes and support a charitable cause. For every pair of shoes purchased, Toms
donates a pair to a child in need. This unique selling proposition appealed specifically to
consumers interested in ethical consumerism.

2. Dollar Shave Club:

o Dollar Shave Club targeted a niche market of men who were frustrated with the high
cost of razors and the inconvenience of purchasing them from stores. The company
offered a subscription-based service delivering razors and grooming products directly to
customers' homes at a lower cost, catering specifically to this segment of consumers.

3. SoulCycle:

o SoulCycle identified a niche market of fitness enthusiasts who wanted a high-energy,

community-driven indoor cycling experience. The company created a unique fitness
studio concept with motivational instructors, specialized cycling classes, and a strong
sense of community, appealing specifically to health-conscious individuals seeking a
unique workout experience.

4. Gluten-free Foods:

o Brands that specialize in gluten-free products target a niche market of consumers with
gluten intolerance or sensitivity. These products cater specifically to individuals who
need or prefer gluten-free options, such as breads, pastas, and snacks, providing
solutions that mainstream brands might not offer.

9. What is Blue Ocean Strategy. Give examples

Blue Ocean Strategy is a strategic approach that focuses on creating new market spaces and uncontested
market environments, thereby making competition irrelevant. It involves innovating and delivering value
in ways that differentiate a company from its competitors, rather than competing head-to-head within
existing market boundaries.
Key Principles of Blue Ocean Strategy:

1. Value Innovation:

o Creating new value for customers by offering unique products or services that stand out
in the market.

2. Eliminating and Reducing:

o Identifying and eliminating factors that the industry takes for granted or reducing them
below industry standards.

3. Raising and Creating:

o Raising factors that customers value above industry standards or creating entirely new
factors that industry has never offered.

4. Non-Customer-Oriented Competition:

o Shifting focus away from competing against rivals to creating new market demand and
growth.

Example:

 Before unlocking a blue ocean strategy Netflix was one of many DVD rentals. Netflix did not
invent movies, but it offered a unique opportunity to watch them online.

 Uber did not compete with taxi owners; instead, it created an app connecting drivers and
customers in seconds.

 Airbnb changed the whole traveling industry by simply creating a platform where people looking
for accommodation would find those who can offer it.

 Apple is known as the most innovative company. But none of their products were the first to
apply the technology they use. Apple's introduction of the iPhone disrupted the mobile phone
industry by combining phone, music player, and internet capabilities into a single device,
attracting customers who were looking for convenience and integration.

10.What is the role of the distributor. State the importance

The role of a distributor in business involves acting as an intermediary between manufacturers or

producers and retailers or end customers. Distributors play a crucial role in the supply chain by
facilitating the movement of goods from the point of production to the point of consumption. Their
primary responsibilities and importance include:

Role of Distributors:

1. Logistics and Warehousing:

 o Distributors manage inventory, store products in warehouses, and ensure timely delivery
to retailers or customers. They handle logistics such as packaging, labeling, and
transportation.

2. Market Reach and Expansion:

o Distributors often have established networks and relationships with retailers,

wholesalers, and customers, enabling manufacturers to reach a broader market without
directly managing sales and distribution channels.

3. Sales and Marketing Support:

o Distributors promote and market products to retailers and end customers through
advertising, promotions, and sales campaigns. They provide sales support, training, and
product education to ensure effective positioning and selling.

4. Customer Service and Support:

o Distributors provide after-sales support, handle customer inquiries, and manage returns
or exchanges. They act as a point of contact for resolving issues and maintaining
customer satisfaction.

5. Market Insights and Feedback:

o Distributors gather market intelligence, such as customer preferences, competitor

activities, and market trends. They provide valuable feedback to manufacturers for
product development and strategic decision-making.

Importance of Distributors:

1. Market Penetration:

o Distributors help manufacturers penetrate new markets and expand their geographic
reach efficiently, leveraging local knowledge and networks.

2. Efficiency and Cost Savings:

o Distributors streamline distribution processes, reduce transportation costs, and optimize

inventory management, leading to overall cost savings for manufacturers.

3. Focus on Core Competencies:

o Manufacturers can focus on core competencies like product innovation and production,
while distributors handle sales, logistics, and customer service.

4. Risk Management:

o Distributors help mitigate risks associated with market fluctuations, demand variability,
and economic uncertainties by providing buffer inventory and market insights.

5. Customer Satisfaction:
 o Distributors enhance customer satisfaction by ensuring product availability, timely
delivery, and responsive customer support, contributing to brand loyalty and repeat
business.

11.What is the role of the Wholesaler. State the importance

Wholesalers play a crucial role in the distribution process by acting as intermediaries between
manufacturers or producers and retailers or other businesses. They purchase large quantities of goods
from manufacturers and sell smaller quantities to retailers, businesses, or other wholesalers. The role
and importance of wholesalers can be summarized as follows:

Role of Wholesalers:

1. Distribution and Logistics:

o Wholesalers facilitate the movement of goods from manufacturers to retailers or other

businesses. They handle storage, inventory management, and transportation, ensuring
products are available when needed.

2. Bulk Purchasing:

o Wholesalers buy goods in large quantities from manufacturers at discounted prices due
to economies of scale. This allows manufacturers to focus on production while
wholesalers manage distribution.

3. Breaking Bulk:

o Wholesalers divide large quantities of goods into smaller units suitable for retailers to
purchase. This enables retailers to buy only the amount they need, reducing their
storage and inventory costs.

4. Market Access and Reach:

o Wholesalers have extensive networks and relationships with retailers across different
regions or markets. They help manufacturers reach a wider customer base and expand
their market presence.

5. Financial Support:

o Wholesalers provide credit facilities and financing options to retailers, allowing them to
purchase goods on credit terms. This improves cash flow for retailers and encourages
repeat business.

6. Market Information and Insights:

o Wholesalers gather market intelligence, such as consumer trends, competitor activities,

and demand fluctuations. They share this information with manufacturers to help them
make informed business decisions.

Importance of Wholesalers:
 1. Efficiency in Distribution:

o Wholesalers streamline the supply chain by efficiently distributing goods to retailers,

reducing transportation costs and delivery times for manufacturers.

2. Cost Savings:

o By purchasing goods in bulk and negotiating lower prices from manufacturers,

wholesalers pass on cost savings to retailers. This helps retailers remain competitive and
profitable.

3. Market Stabilization:

o Wholesalers help stabilize markets by managing fluctuations in demand and supply. They
maintain buffer inventory and ensure product availability during peak seasons or
unforeseen events.

4. Specialization and Expertise:

o Wholesalers specialize in specific industries or product categories, offering expertise in

product knowledge, market trends, and customer preferences. This specialization adds
value to manufacturers and retailers alike.

5. Risk Management:

o Wholesalers absorb risks associated with inventory management, storage, and

transportation. They provide a buffer against economic uncertainties and market
fluctuations, reducing risk for manufacturers and retailers.

12.What is the role of Retailer. State importance.

Retailers play a pivotal role in the distribution channel by serving as the final link between manufacturers
or wholesalers and consumers. They are responsible for selling goods and services directly to customers
through physical stores, online platforms, or a combination of both. The role and importance of retailers
can be outlined as follows:

Role of Retailers:

1. Sales and Customer Interaction:

o Retailers sell products and services directly to consumers, providing a physical or online
platform where customers can make purchases.

2. Merchandising and Product Display:

o Retailers manage product displays, layouts, and promotions to attract customers and
enhance the shopping experience.

3. Customer Service and Support:

 o Retailers provide assistance to customers, answer inquiries, handle returns or
exchanges, and ensure a positive shopping experience.

4. Inventory Management:

o Retailers manage inventory levels to ensure products are available for purchase,
balancing supply and demand to avoid stockouts or overstock situations.

5. Marketing and Promotion:

o Retailers conduct marketing campaigns, promotions, and advertising to attract

customers and drive sales. They may collaborate with manufacturers or wholesalers on
co-marketing efforts.

6. Payment Processing:

o Retailers facilitate transactions by accepting various payment methods, including cash,

credit cards, debit cards, and digital wallets.

Importance of Retailers:

1. Market Access and Reach:

o Retailers provide manufacturers and wholesalers with access to a wide customer base.
They reach consumers in diverse geographic locations and demographics, expanding
market reach.

2. Customer Relationships and Loyalty:

o Retailers build relationships with customers through personalized service, product
recommendations, and loyalty programs. They enhance brand loyalty and encourage
repeat purchases.

3. Demand Aggregation:

o Retailers aggregate consumer demand and provide feedback to manufacturers or

wholesalers. This helps suppliers forecast sales, plan production, and optimize inventory
levels.

4. Channel of Distribution:

o Retailers serve as a crucial channel in the distribution network, bridging the gap
between suppliers and consumers. They ensure products are delivered efficiently from
production to end-users.

5. Job Creation and Economic Impact:

o Retailers contribute to local economies by creating jobs, generating revenue, and

supporting related industries such as logistics, marketing, and retail technology.

6. Innovation and Adaptation:

 o Retailers innovate by introducing new products, services, or store concepts that meet
evolving consumer preferences and market trends. They adapt to changes in technology,
consumer behavior, and competitive landscape.

13.Difference between Wholesaler and Retailer.

Basis Wholesaler Retailer

Individuals who purchase goods in large

Individuals who purchase from
quantities from manufacturers with the
wholesalers and sell goods in
Meaning purpose of reselling them for a profit are
smaller quantities to end users
known as Wholesalers.
are known as Retailers.

Less capital is needed as

Capital A large capital is needed.
compared to Wholesalers.

It is a link between manufacturers and It is a link between wholesalers

Link
retailers. and customers.

They are located in the central market of They are located in various
Location
the city. markets of the city.

In retail, the margin of profit is

Margin of Profit In wholesale, the margin of profit is less
high.

Generally, most of the dealings are done Most of the dealings are done
Nature of Payment
on credit. with cash.

They sell or deal in one or two specialised

Speciality They deal in a variety of products.
products.
Basis Wholesaler Retailer

They do not require large storage

They require large storage areas to stock
Storage areas as they purchase goods on
goods on large scale.
small scale.

Retailers do have a requirement

Wholesalers do not require any
Window for advertisements and window
advertisement or window display as they
Display/Advertisement displays to attract more and more
are not required to attract their clients.
customers.

There is no arrangement for after-sale or There is arrangement of after-sale

After-sale service
repair service. service.

Scope of business Business is spread over several places. Retailers cover local areas.

14. Difference between Distributor and Retailer

15. Discuss about Sales Promotion.

Sales promotion plays a significant role within the broader context of marketing strategies. It serves as a
tactical tool to achieve specific short-term objectives that support overall marketing goals. Here’s how
sales promotion fits into the perspective of marketing:

Strategic Alignment:

1. Complementing Marketing Mix:

o Sales promotion works alongside other elements of the marketing mix (product, price,
place, promotion) to enhance overall marketing effectiveness. It can reinforce brand
messaging, support product launches, or drive traffic to retail locations.

2. Targeting Consumer Behavior:

o By understanding consumer behavior and buying patterns, sales promotion can be

tailored to incentivize purchases at specific times or for particular products. For example,
seasonal promotions capitalize on consumer spending habits during holidays or special
events.

Objectives and Goals:

1. Generating Immediate Sales:

o One of the primary objectives of sales promotion is to stimulate immediate purchases.

Promotions like discounts, coupons, or limited-time offers encourage consumers to take
action quickly, boosting sales within a short timeframe.

2. Encouraging Trial and Adoption:

o Sales promotion can be used to introduce new products or services to the market. Free
samples, introductory offers, or buy-one-get-one (BOGO) promotions incentivize
consumers to try new products, potentially leading to repeat purchases.

3. Building Brand Awareness and Loyalty:

o Promotional activities can increase brand visibility and attract new customers who may
not be familiar with the brand. Loyalty programs or reward incentives foster repeat
business and enhance customer retention.

16. Difference between normal promotion and sales promotion.

Normal Promotion (Advertising and Marketing):

1. Scope:

o Normal promotion, often referred to simply as promotion, encompasses all activities

aimed at promoting a product, service, or brand to target audiences. It includes a wide
range of promotional activities beyond immediate sales incentives.
 2. Intent:

o The primary intent of normal promotion is to build brand awareness, create positive
brand associations, communicate brand value propositions, and influence consumer
perceptions over the long term.

3. Duration:

o Normal promotion strategies are typically ongoing and part of a continuous effort to
maintain visibility, educate consumers, and position the brand strategically in the
market. They may include advertising campaigns, public relations efforts, content
marketing, social media engagement, and brand sponsorships.

4. Examples:

o Advertising through TV, radio, print media, digital platforms.

o Public relations activities such as media relations, press releases, and events.

o Content marketing through blogs, articles, videos, and social media posts aimed at
building brand authority and engagement.

Sales Promotion:

1. Scope:

o Sales promotion refers specifically to short-term incentives or activities designed to

stimulate immediate sales of a product or service. It focuses on encouraging purchase
behavior within a limited timeframe.

2. Intent:

o The primary intent of sales promotion is to increase sales volume quickly, clear out
excess inventory, promote seasonal or new products, attract price-sensitive customers,
or reward customer loyalty through special offers.

3. Duration:

o Sales promotion campaigns are temporary and have a defined duration. They are
strategically planned to coincide with specific marketing objectives, seasonal trends, or
promotional events.

4. Examples:

o Discounts and price reductions.

o Coupons and voucher, offers.

o Buy-one-get-one-free (BOGO) promotions.

o Limited-time offers and flash sales, Contests, sweepstakes, and giveaways aimed at
immediate consumer engagement and purchase.
16. Difference between Service and Product.

A product is any physical or virtual object a customer buys, owns, stores, resells, or disposes of. Types of
Products

There are two broad types of products

 Consumer Products – The finished goods the consumer uses, such as convenience goods (daily
purchases like grocery), shopping products (one-time purchases like vehicles), etc.

 Industrial Products – The goods to be sold to another product manufacturer, such as raw
materials required for manufacturing industrial goods.

A service is intangible. It is the transaction of intangible goods between the service provider and
customer. One of the key ways to differentiate it from a product is that a service is neither transferable
nor storable. Types of Services

Let’s explore the types of services based on tangibility and intangibility.

 Services Based on Tangibility – This classification includes services for people such as healthcare
facilities, restaurants, etc. Apart from that, there is service for goods including transportation,
warehouse facility, repairing, etc.

 Services Based on Intangibility – This classification covers education, information services, legal
services, etc.

17. What is Guerrilla marketing? Strategies in Guerrilla marketing.

Guerrilla marketing is a creative and unconventional marketing strategy that focuses on using low-cost,
innovative tactics to engage with consumers and generate buzz around a brand or product. It often relies
on surprise, humor, or unconventional approaches to reach consumers in unexpected ways. Here are
examples and strategies commonly used in guerrilla marketing:

Examples of Guerrilla Marketing:

 1. Flash Mobs:

o Organizing spontaneous gatherings of people in public places to perform a

choreographed dance, song, or activity that promotes a brand or message. For example,
a flash mob promoting a new movie release by performing scenes from the movie in a
crowded shopping mall.

2. Street Art or Installations:

o Creating temporary or permanent street art, graffiti, or installations that incorporate

brand messages or products. This can include artistic murals, 3D sculptures, or
interactive displays in urban areas. For instance, a street art campaign by a shoe
company that paints murals of people wearing their shoes in popular city locations.

3. Ambient Advertising:

o Using everyday objects or environments creatively to advertise a product or brand. This

could involve placing stickers, posters, or signage in unusual or unexpected locations. For
example, using steam from a manhole cover to create a temporary advertisement for a
coffee shop.

4. Stunts or Publicity Stunts:

o Performing attention-grabbing stunts or events that generate media coverage and social
media buzz. This might include skydiving into a major event while wearing branded
clothing or staging a public spectacle related to a product launch.

5. Guerrilla Product Sampling:

o Distributing free samples of a product in high-traffic areas or events to introduce

consumers to a new product or generate trial. This can include handing out product
samples on busy streets, at concerts, or at festivals.

Strategies in Guerrilla Marketing:

1. Creativity and Innovation:

o Guerrilla marketing relies on creativity to develop unconventional and memorable

campaigns that capture attention and stand out from traditional advertising.

2. Targeted Audience Engagement:

o Understanding the target audience and selecting locations or events where the
campaign is likely to reach and resonate with potential customers effectively.

3. Cost-Effectiveness:

o Emphasizing low-cost strategies and leveraging existing resources creatively to achieve

maximum impact without large advertising budgets.

4. Viral Potential:
 o Designing campaigns with the potential to go viral on social media platforms,
encouraging consumers to share their experiences and amplify the campaign's reach.

5. Brand Integration:

o Ensuring that the guerrilla marketing activities align with the brand's identity, values,
and messaging to reinforce brand recognition and recall among consumers.

6. Measuring Impact:

o Tracking and measuring the effectiveness of guerrilla marketing campaigns through

metrics such as social media engagement, website traffic, media coverage, and customer
feedback.

Example: IKEA

 Campaign: IKEA transformed a bus stop into a mini living room in Paris, showcasing small-
space solutions.

 Effectiveness: This interactive setup demonstrated IKEA products' practicality and generated
buzz through social media and press coverage.

 Strategies: IKEA's guerrilla marketing focuses on creativity, engaging experiences, and viral
potential to reinforce their brand as innovative and practical in-home furnishings.

18. What is Green marketing? Give example.

Green marketing, also known as sustainable marketing or environmental marketing, refers to promoting
products or services that are environmentally friendly or have sustainable attributes. The goal of green
marketing is to appeal to environmentally conscious consumers and demonstrate a commitment to
environmental responsibility. Here's an explanation and an example:

Green Marketing Explanation:

Green marketing involves incorporating environmental considerations into various aspects of marketing
strategies, including product design, packaging, distribution, promotion, and pricing. Companies engage
in green marketing to differentiate their products, attract eco-conscious consumers, comply with
regulatory requirements, and contribute to sustainability efforts.

Example: Tesla

 Company Background: Tesla, an electric vehicle (EV) and clean energy company founded by Elon
Musk, is renowned for its commitment to sustainability and reducing carbon emissions.

 Green Marketing Initiative: Tesla promotes its electric vehicles (EVs) as an environmentally
friendly alternative to traditional gasoline-powered cars. The company emphasizes the benefits
of EVs in reducing greenhouse gas emissions, improving air quality, and promoting renewable
energy adoption.
  Effectiveness: By positioning itself at the forefront of electric mobility and renewable energy
solutions, Tesla has built a strong brand identity around sustainability. Its marketing efforts
highlight the environmental benefits of EVs, appealing to environmentally conscious consumers
who seek eco-friendly transportation options. Tesla's success in green marketing has contributed
to the growing popularity and adoption of electric vehicles globally.

19. What are the 4Ps of marketing?

The 4Ps of marketing, also known as the marketing mix, are fundamental principles used by marketers to
effectively plan and execute marketing strategies. Here's a brief explanation of each component:

1. Product: Refers to the tangible goods or intangible services that a company offers to meet
customer needs and wants. Product decisions include product features, quality, design,
branding, packaging, and customer support.

2. Price: Represents the amount customers are willing to pay for a product or service. Pricing
decisions involve setting a price that reflects the product's value, considering factors such as
pricing strategies, competitor pricing, perceived value by customers, discounts, and payment
terms.

3. Place (Distribution): Focuses on how the product or service is made available to customers. It
involves decisions related to distribution channels (e.g., direct sales, retailers, online platforms),
logistics, inventory management, warehousing, and geographic reach.

4. Promotion: Involves communication strategies used to inform, persuade, and influence potential
customers about the product or service. Promotion includes advertising, sales promotions,
public relations, direct marketing, digital marketing, personal selling, and brand communication.

Importance of the 4Ps:

 Integration: The 4Ps help ensure that all aspects of marketing strategy are aligned to achieve the
company's objectives and meet customer needs effectively.

 Customer Focus: They emphasize understanding and satisfying customer needs through product
development, pricing strategies that reflect value, convenient distribution, and effective
promotion.
 Flexibility: Marketers can adjust each element of the marketing mix based on market conditions,
customer feedback, and competitive dynamics to maintain relevance and competitive
advantage.

20. Different approaches involved in company orientation towards marketplace. Give examples?

Company orientation towards the marketplace refers to the philosophy or approach a company adopts
in its interactions with customers, competitors, and the broader market environment. There are several
key orientations that companies may adopt:
Different Approaches in Company Orientation:

1. Production Orientation:

o Focus: Emphasizes efficient production and distribution of products.

o Example: Henry Ford's early approach with the Model T, where mass production
techniques were used to lower costs and make cars affordable for the masses.

2. Product Orientation:

o Focus: Emphasizes product innovation, quality, and performance.

o Example: Apple Inc., known for its focus on designing innovative products like the
iPhone and MacBook with superior features and user experience.

3. Sales Orientation:

o Focus: Emphasizes aggressive sales techniques and promotional efforts to generate

sales.

o Example: Direct sales companies like Amway, which heavily invest in sales training,
incentives, and promotional campaigns to drive immediate sales.

4. Market Orientation:

o Focus: Emphasizes understanding and meeting customer needs and preferences.

o Example: Amazon, which uses customer data and analytics to personalize

recommendations, improve user experience, and continuously innovate based on
customer feedback.

5. Societal Orientation (or Social Marketing Orientation):

o Focus: Emphasizes balancing profit objectives with societal well-being and ethical
considerations.

o Example: Patagonia, which promotes environmental sustainability through its product

offerings, corporate practices, and advocacy efforts.

Examples of Company Approaches:

 Procter & Gamble (P&G): P&G is known for its strong market orientation, conducting extensive
consumer research to develop products that meet specific consumer needs and preferences.
Their brands like Gillette and Tide reflect deep understanding and responsiveness to consumer
demands.

 Tesla: Tesla exemplifies a product orientation with its focus on innovative electric vehicles and
clean energy solutions. The company prioritizes product development and technological
advancement to lead the market in sustainable transportation.
20. What are the Components involved in Promotion mix? Give examples.

The promotion mix consists of various components or tools that marketers use to communicate with and
persuade target audiences about their products or services. These components work together to create
integrated promotional campaigns. Here are the key components of the promotion mix along with
examples:

Components of the Promotion Mix:

1. Advertising:

o Definition: Paid, non-personal communication through various media channels to

promote a product, service, or brand.

o Examples: TV commercials, radio ads, print advertisements (newspapers, magazines),

online banner ads, social media ads (Facebook, Instagram), billboards, and sponsorships.

2. Sales Promotion:

o Definition: Short-term incentives or promotions designed to stimulate immediate sales

or encourage consumer engagement.

o Examples: Discounts (e.g., "20% off"), coupons, rebates, BOGO (buy one, get one free)
offers, contests, sweepstakes, loyalty programs, free samples, and point-of-purchase
displays.

3. Public Relations (PR):

o Definition: Building and maintaining positive relationships with the public and media to
enhance the company's image and reputation.

o Examples: Press releases, media relations, crisis management, event sponsorships,

community involvement, and corporate social responsibility (CSR) initiatives.

4. Personal Selling:

o Definition: Face-to-face or direct communication between a salesperson and potential

customers to persuade them to purchase a product or service.

o Examples: Sales presentations, product demonstrations, one-on-one meetings, trade

shows, and door-to-door selling.

5. Direct Marketing:

o Definition: Communicating directly with target customers to generate a response or

transaction through various channels.

o Examples: Direct mail (letters, catalogs, brochures), email marketing, telemarketing, SMS
marketing (text messages), personalized web experiences, and online subscription
services.

Integrated Examples of Promotion Mix Components:

  Integrated Campaign Example: Coca-Cola's "Share a Coke" campaign combined several
promotion mix components:

o Advertising: TV commercials, digital ads, and outdoor billboards featuring personalized

Coke bottles.

o Sales Promotion: Customized Coke bottles with individual names encouraged customers
to purchase and share.

o Public Relations: Social media engagement with consumers sharing their personalized
Coke bottles.

o Direct Marketing: Email campaigns and personalized direct mail promoting the
campaign and encouraging participation.

 Retail Promotion Example: A retail store's promotion mix might include:

o Advertising: Local newspaper ads and social media promotions.

o Sales Promotion: In-store discounts, loyalty program rewards, and seasonal sales events.

o Public Relations: Community involvement activities and press releases about store
openings or special events.

o Personal Selling: Store associates engaging customers, providing product

demonstrations, and offering personalized assistance.

21. What is Pricing strategies? Give examples.

Pricing strategies refer to the methods and approaches used by companies to set prices for their
products or services. These strategies are crucial in determining the perceived value of offerings,
influencing consumer behavior, and achieving business objectives. Here are some common pricing
strategies with examples:

Pricing Strategies:

1. Penetration Pricing:

o Definition: Setting a low initial price to quickly gain market share and attract customers,
with the intention to increase prices later.

o Example: New tech gadgets often use penetration pricing to penetrate the market
quickly. For instance, gaming consoles like PlayStation or Xbox may initially price their
consoles lower to attract early adopters and build a user base.

2. Price Skimming:

o Definition: Setting a high price initially to maximize revenue from the most eager
customers and then gradually lowering the price to attract more price-sensitive
segments.
 o Example: Apple often uses price skimming for its new iPhone models. Initially, prices are
higher to target early adopters and enthusiasts willing to pay a premium. Over time,
prices decrease as newer models are released, targeting broader market segments.

3. Premium Pricing:

o Definition: Setting a high price to reflect the exclusiveness or premium quality of a

product or service.

o Example: Luxury brands like Rolex or Chanel use premium pricing to position their
products as exclusive and high-quality. Customers are willing to pay more for the
prestige associated with owning these brands.

4. Economy Pricing:
o Definition: Setting a low price to attract price-sensitive customers and compete primarily
on price.

o Example: Discount retailers like Walmart or Aldi use economy pricing to offer everyday
low prices on a wide range of products. They focus on cost efficiency and high sales
volume to maintain profitability.

5. Psychological Pricing:

o Definition: Setting prices that appeal to the psychological perceptions of consumers

rather than strictly based on cost or competition.

o Example: Charging $9.99 instead of $10.00 (known as charm pricing) is a common

example. Consumers perceive $9.99 as significantly cheaper, despite the minimal
difference.

6. Bundle Pricing:

o Definition: Offering multiple products or services together at a reduced price compared

to purchasing them individually.

o Example: Fast food restaurants often offer combo meals that include a sandwich, fries,
and a drink at a lower price than buying each item separately. This encourages larger
purchases and increases average transaction value.

7. Value-Based Pricing:
o Definition: Setting prices based on the perceived value to customers, rather than on
costs or competition.

o Example: Software companies often use value-based pricing for their products. Prices
are based on the benefits and value the software provides to users, such as productivity
gains or efficiency improvements.

Strategic Considerations:
  Competitive Positioning: Pricing strategies should align with the company's competitive
positioning and differentiation strategy in the market.

 Customer Segmentation: Understanding customer segments and their willingness to pay helps
in selecting the most appropriate pricing strategy.

 Profit Objectives: Pricing decisions should also consider profitability goals, cost structures, and
long-term sustainability of pricing strategies in relation to market dynamics.

22. Product Life Cycle (PLC) for XYZ industry.

The PLC typically consists of four stages: Introduction, Growth, Maturity, and Decline. Here’s a general
outline of how PLC stages might apply to an industry:

Product Life Cycle (PLC) Stages:

1. Introduction:

o Characteristics: Product is launched into the market. Sales are low as consumers
become aware of the product and its benefits.
o Marketing Strategies: Heavy investment in promotion and awareness-building activities.
Pricing may be high to recoup development costs.

o Example: In the technology industry, new gadgets like smartphones or smartwatches go

through an introduction phase where early adopters purchase them, and companies
focus on building brand recognition.

2. Growth:

o Characteristics: Sales begin to increase as product gains acceptance. Competitors may

enter the market.

o Marketing Strategies: Enhancing product features, expanding distribution channels, and

targeting broader consumer segments.

o Example: Electric vehicles (EVs) in the automotive industry are currently experiencing
growth as more consumers adopt environmentally friendly transportation solutions,
leading to increased sales and competition among manufacturers.

3. Maturity:

o Characteristics: Sales growth slows as the market becomes saturated. Price competition
intensifies, and companies focus on retaining market share.

o Marketing Strategies: Differentiating products through branding, customer loyalty

programs, and improving cost efficiencies.
 o Example: The smartphone industry has reached maturity, where incremental
improvements and brand loyalty play significant roles in maintaining market share amid
intense competition.

4. Decline:

o Characteristics: Sales decline due to market saturation, changing consumer preferences,

or technological advancements.

o Marketing Strategies: Companies may focus on product differentiation, reducing costs,

or exiting the market gracefully.

o Example: Traditional film photography faced decline with the advent of digital
photography, as consumers shifted preferences towards digital cameras and
smartphones.

Industry-Specific Example:

 XYZ Industry (Hypothetical):

o Introduction: A new type of renewable energy technology is introduced, attracting early

adopters and investment in research and development.

o Growth: Increased demand and government incentives lead to rapid expansion in

installations and adoption.

o Maturity: Market becomes saturated with various technologies, and competition

increases. Companies focus on cost efficiencies and improving reliability.

o Decline: New breakthroughs in energy storage or alternative technologies emerge,

reducing demand for the older technology.

23. Different roles in Marketing intermediaries. Give examples.

Marketing intermediaries play crucial roles in facilitating the distribution and promotion of products and
services from manufacturers to consumers. They bridge the gap between producers and consumers by
performing various functions within the marketing channel. Here are different roles of marketing
intermediaries along with examples:

Roles of Marketing Intermediaries:

1. Wholesalers:

o Role: Buy products in bulk from manufacturers and sell smaller quantities to retailers.

o Example: Costco purchases goods from various manufacturers in large quantities and
then sells them to consumers and businesses in smaller quantities through their
warehouse clubs.

2. Retailers:
 o Role: Sell products directly to consumers through physical stores, online platforms, or
other channels.

o Example: Walmart operates retail stores globally where consumers can purchase a wide
range of products, including groceries, electronics, and clothing.

3. Distributors:

o Role: Specialize in distributing products within a specific geographic area or market

segment.

o Example: Sysco distributes food and related products to restaurants, healthcare

facilities, and educational institutions across North America.

4. Agents and Brokers:

o Role: Facilitate transactions between buyers and sellers without taking ownership of the
products.

o Example: Real estate agents help buyers and sellers in purchasing and selling properties,
earning commissions based on successful transactions.

5. Marketing Service Agencies:

o Role: Provide specialized marketing services such as advertising, market research, public
relations, and digital marketing.

o Example: Ogilvy & Mather is a global advertising and marketing agency that offers a
range of services to help brands develop effective marketing campaigns and strategies.

6. Financial Intermediaries:

o Role: Provide financing options or credit facilities to manufacturers, wholesalers, and

retailers to support their operations.

o Example: American Express offers credit card services that enable businesses and
consumers to make purchases and manage expenses, facilitating transactions within the
market.

7. Logistics and Transportation Companies:

o Role: Manage and coordinate the physical movement of products from manufacturers to
distributors, retailers, or directly to consumers.

o Example: UPS provides logistics and transportation services worldwide, ensuring timely
delivery of packages and freight across various industries.

Importance of Marketing Intermediaries:

 Market Access: Intermediaries provide access to wider markets and distribution channels,
enabling manufacturers to reach a larger customer base.
  Efficiency: They streamline the distribution process, reduce costs, and improve inventory
management through specialized services.

 Expertise: Intermediaries offer expertise in specific functions such as marketing, logistics, and
finance, enhancing overall efficiency and effectiveness in the marketing channel.

24. Explain Above The Line (ATL) and Below The Line (BTL).

Above The Line (ATL) and Below The Line (BTL) are two distinct methods of advertising and promotional
strategies used by marketers to reach and engage target audiences. Here’s a brief explanation of each:

Above The Line (ATL):

 Definition: Above The Line advertising refers to promotional activities that are non-targeted and
are widely broadcast to a mass audience. These are typically paid forms of communication.

 Media Channels: Includes traditional mass media channels such as television, radio, print
advertisements (newspapers, magazines), and outdoor advertising (billboards, posters).

 Characteristics:
o Reach: ATL activities aim to reach a broad audience, irrespective of their demographics
or preferences.

o Brand Awareness: Focuses on building brand awareness and creating a favorable brand
image.

o Cost: Generally involves higher costs due to the broad reach and use of mass media.

 Example: A national television commercial promoting a new soft drink would be an ATL activity
because it reaches a large and diverse audience through a popular broadcast medium.

Below The Line (BTL):

 Definition: Below The Line activities are targeted, focused, and more personalized promotional
efforts directed towards specific groups of consumers based on their demographics, interests, or
behaviors.

 Media Channels: Includes direct marketing, email marketing, sponsorships, point-of-sale

displays, exhibitions, trade shows, and social media marketing.

 Characteristics:

o Targeted: BTL activities are highly targeted to reach specific segments of the audience.

o Measurable: Results of BTL activities can be more easily measured and analyzed for
effectiveness.

o Engagement: Focuses on direct interaction and engagement with consumers to drive

immediate action or response.
  Example: Sending personalized emails with special offers to loyalty program members of a retail
store is a BTL activity because it targets a specific segment of customers based on their
purchasing behavior.

Key Differences:

 Audience Reach: ATL targets a mass audience broadly, while BTL focuses on specific customer
segments.

 Cost: ATL activities generally involve higher costs due to the use of mass media, whereas BTL
activities can be more cost-effective and measurable.

 Objectives: ATL aims at building brand awareness and visibility, while BTL aims at driving
immediate sales or specific consumer actions.

25. What are the Companies using ATL and BTL and why?

Companies use Above The Line (ATL) and Below The Line (BTL) marketing strategies based on their
objectives, target audience, and desired outcomes. Here are examples of companies using ATL and BTL
strategies and the reasons behind their choices:

Companies Using Above The Line (ATL) Strategies:

1. Procter & Gamble (P&G):

o ATL Activities: P&G uses television commercials, print advertisements, and digital
campaigns to promote its consumer goods brands globally.

o Reasons: P&G focuses on building broad brand awareness and reaching a large audience
quickly. ATL helps in establishing brand presence across multiple markets and
demographics simultaneously.

2. Coca-Cola:

o ATL Activities: Coca-Cola invests heavily in television advertising, sponsorships of major

events (like the Olympics), and global campaigns.

o Reasons: Coca-Cola uses ATL to reinforce its brand image, maintain leadership in the
beverage industry, and create emotional connections with consumers on a mass scale.

3. Apple Inc.:

o ATL Activities: Apple utilizes television commercials, digital advertising, and high-profile
product launches to promote its iPhones, MacBooks, and other products.

o Reasons: ATL helps Apple in reaching a global audience, creating hype around new
product launches, and maintaining its premium brand image through high-quality
advertising.

Companies Using Below The Line (BTL) Strategies:

 1. Nike:

o BTL Activities: Nike engages in sponsorships of sports events, experiential marketing

campaigns, and targeted social media promotions.

o Reasons: Nike uses BTL to create direct engagement with athletes and sports
enthusiasts, drive brand advocacy, and encourage immediate consumer action, such as
purchasing new product releases.

2. Red Bull:

o BTL Activities: Red Bull organizes extreme sports events, sponsors athletes, and uses
guerrilla marketing tactics.

o Reasons: Red Bull focuses on creating unique brand experiences, engaging with its target
audience directly, and building a lifestyle brand that resonates with adventurous and
active consumers.

3. Amazon:

o BTL Activities: Amazon uses personalized email marketing, targeted online advertising,
and promotions tailored to customer preferences.

o Reasons: Amazon employs BTL to enhance customer relationships, drive sales through
personalized recommendations, and leverage data analytics to deliver relevant
marketing messages to specific customer segments.

Reasons for Using Both ATL and BTL:

 Reach and Engagement: ATL helps companies reach a wide audience and build brand awareness,
while BTL enables direct engagement with specific consumer segments, driving immediate
actions.

 Brand Building vs. Sales Activation: ATL is effective for brand building and creating long-term
brand equity, while BTL is more focused on generating immediate sales and fostering customer
relationships.

 Cost and Effectiveness: ATL can be costly but reaches a broad audience efficiently, while BTL can
be more cost-effective and measurable, providing clearer ROI on marketing investments.

26. What is Market penetration pricing?

Market penetration pricing is a pricing strategy where a company sets a relatively low price for its
product or service initially to gain a large market share quickly. The goal of this strategy is to attract
customers away from competitors and encourage them to try the new offering. Here’s how market
penetration pricing works and its key characteristics:

Characteristics of Market Penetration Pricing:

 1. Low Initial Price: The product is priced lower than competitors' offerings to make it more
attractive and affordable to customers.

2. Market Share Focus: The primary objective is to capture a significant share of the market quickly
by appealing to price-sensitive consumers.

3. Short-Term Strategy: It's often used as a short-term tactic to penetrate the market rapidly and
establish a foothold.

4. Potential for Higher Sales Volume: Lower prices can stimulate higher sales volume, especially if
demand is elastic and price-sensitive.

5. Competitive Reaction: Competitors may respond with price reductions of their own, leading to
price wars or adjustments in the market.

Reasons for Using Market Penetration Pricing:

 Product Launch: It's effective when introducing a new product or entering a new market
segment to quickly gain visibility and traction.

 Building Market Share: Helps in gaining a larger customer base early on, which can lead to long-
term benefits such as economies of scale and brand loyalty.

 Discouraging Competitors: By offering a compelling price, it may deter competitors from

entering the market or convince existing competitors to lower their prices.

Example of Market Penetration Pricing:

An example of a brand that has successfully used market penetration pricing strategy is Xiaomi in the
smartphone industry.

 Brand: Xiaomi

 Strategy: Market Penetration Pricing

Example Scenario:
Xiaomi entered the smartphone market with high-quality smartphones at significantly lower prices
compared to established brands like Apple and Samsung. Here’s how Xiaomi implemented market
penetration pricing:

1. Low Initial Prices: Xiaomi initially offered smartphones with robust features and performance at
prices significantly lower than competitors. This strategy made their products highly attractive to
price-sensitive consumers and those looking for value.

2. Market Share Gain: By pricing their smartphones competitively, Xiaomi quickly gained market
share, especially in emerging markets where affordability is a key factor for consumers.

3. Competitive Advantage: The lower prices helped Xiaomi differentiate itself from premium
brands and attract a large base of loyal customers who appreciated the combination of quality
and affordability.
 4. Expansion Strategy: Xiaomi’s success with market penetration pricing enabled the company to
expand rapidly beyond its home market in China to international markets, including India and
various Southeast Asian countries.

5. Long-term Strategy: While Xiaomi initially used market penetration pricing to establish itself, the
company has gradually expanded its product range and introduced higher-priced models,
catering to a broader spectrum of consumers while maintaining competitive pricing strategies in
various market segments.

27. What is New product development? steps of new product development. Give examples

New product development (NPD) refers to the process of bringing a new product or service to market. It
involves various stages and steps that companies follow to conceptualize, design, develop, and launch
new offerings that meet consumer needs and achieve business objectives. Here are the typical steps
involved in new product development along with examples:

Steps of New Product Development:

1. Idea Generation:

o Definition: Generating ideas for new products based on market research, consumer
insights, technological advancements, or creative brainstorming sessions.

o Example: Google encourages employees to spend 20% of their time on side projects,
leading to innovations like Gmail and Google Maps.

2. Idea Screening:

o Definition: Evaluating product ideas to determine their feasibility, fit with company
goals, market potential, and alignment with consumer needs.

o Example: Coca-Cola continuously evaluates new flavor ideas through consumer testing
and market research before deciding to launch products like Coca-Cola Zero Sugar.

3. Concept Development and Testing:

o Definition: Developing detailed concepts for selected ideas and testing them with target
consumers to gather feedback and refine concepts.

o Example: Apple conducts extensive concept testing and consumer research to refine
product features and designs for new iPhone models before launch.

4. Business Analysis:

o Definition: Assessing the financial viability of the new product concept, including cost
estimation, pricing strategy, sales forecasts, and profit potential.

o Example: Tesla conducts thorough business analysis before launching new electric
vehicle models, evaluating production costs, pricing strategies, and expected market
demand.
 5. Product Development:

o Definition: Developing the prototype or final version of the product, including

engineering, design, manufacturing, and testing for quality assurance.

o Example: Samsung invests in extensive R&D and product development to create new
smartphone models with advanced features and designs.

6. Market Testing (Beta Testing):

o Definition: Testing the product in real-market settings or with a selected group of

consumers to identify any issues, gather feedback, and refine the product before full-
scale launch.

o Example: Microsoft releases beta versions of software products like Windows and Office
to selected users for testing and feedback before official release.

7. Commercialization:

o Definition: Launching the product into the market, including finalizing marketing plans,
distribution strategies, sales training, and customer support.

o Example: Amazon commercializes new products like the Kindle e-reader by leveraging
its extensive distribution network, digital marketing campaigns, and customer service
capabilities.

Importance of New Product Development:

 Innovation: NPD drives innovation within companies, allowing them to stay competitive and
meet evolving consumer demands.

 Revenue Growth: Successful new products can contribute significantly to revenue growth and
market expansion.

 Brand Differentiation: Launching innovative products helps brands differentiate themselves in

competitive markets and build customer loyalty.

28. What is market saturation? Give examples

Market saturation refers to a stage in the product life cycle where demand for a product or service
reaches a plateau, and further growth becomes difficult or limited due to the majority of potential
customers already owning or using the product. Here’s a more detailed explanation with examples:

Definition and Characteristics of Market Saturation:

 Definition: Market saturation occurs when a product has achieved widespread adoption within
its target market, and the rate of new customer acquisition slows down significantly.

 Characteristics:
 o High Penetration: A large proportion of potential customers already own or use the
product.

o Slowed Growth: Sales growth rates level off or decline as market demand stabilizes.

o Intense Competition: Increased competition among existing players for market share.

o Price Sensitivity: Consumers become more price-sensitive as options and substitutes

increase.

Examples of Market Saturation:

1. Smartphones:

o Example: The smartphone market in developed countries like the United States and
Western Europe has reached saturation. Most consumers own smartphones, and new
sales growth primarily comes from replacement purchases or upgrades rather than new
customers entering the market.

2. Soft Drinks:

o Example: Brands like Coca-Cola and Pepsi have achieved high market penetration
globally. Sales growth in mature markets is primarily driven by marketing campaigns,
product innovations, or changes in consumer preferences rather than expanding the
consumer base.

3. Automobiles:

o Example: Automobile markets in developed countries often experience saturation, with

a high percentage of households owning at least one vehicle. Automakers focus on
maintaining market share through product differentiation, quality improvements, and
customer loyalty programs.

4. Basic Household Goods:

o Example: Products like refrigerators, washing machines, and microwaves in developed

markets have high penetration levels. Manufacturers in these sectors focus on
innovation, energy efficiency, and targeting niche segments to maintain or grow their
market share.

29.Explain Segmentation, Targeting and Positioning (STP). Give examples.

Segmentation, Targeting, and Positioning (STP) are strategic marketing processes that help businesses
identify and reach specific customer segments effectively. Here’s an overview of each component and
examples to illustrate how companies use STP:

Segmentation:

Definition: Segmentation involves dividing a broad market into smaller, more homogeneous groups of
consumers who have similar needs, preferences, behaviors, or characteristics.
Example:

 Nike: Nike segments its market based on various factors such as demographics (age, gender),
psychographics (lifestyle, interests), and behaviors (sports preferences). For example, Nike
segments its running shoe market into categories like performance runners, casual runners, and
trail runners, each with specific product offerings tailored to their needs.

Targeting:

Definition: Targeting involves selecting one or more segments identified during segmentation that the
company wants to focus its marketing efforts on and serve with its products or services.

Example:

 Apple: Apple targets specific segments within the consumer electronics market based on factors
such as lifestyle, technology adoption, and brand loyalty. For instance, Apple targets affluent
consumers who value premium design and seamless integration (e.g., iPhone users) and also
targets creative professionals with products like the Mac Pro and iPad Pro, tailored to their
specific needs.

Positioning:

Definition: Positioning refers to how a company communicates the unique value and benefits of its
products or services to its target customers relative to competitors in the market.

Example:

 Volvo: Volvo positions itself as a brand synonymous with safety in the automotive industry. Their
marketing messages emphasize features like advanced safety technologies, crash test ratings,
and innovative safety designs. This positioning strategy appeals to consumers who prioritize
safety when choosing a vehicle, distinguishing Volvo from competitors who may focus on other
attributes like performance or luxury.

Importance of STP:

 Effective Resource Allocation: Helps companies allocate resources more efficiently by focusing
on segments with the highest potential for profitability and growth.

 Enhanced Marketing Effectiveness: Enables tailored marketing strategies and messages that
resonate with specific customer needs and preferences.

 Competitive Advantage: Differentiates the brand from competitors by highlighting unique value
propositions that appeal to targeted segments.

29. Kotler's 5 product level model.

Kotler's 5 product level model, also known as the product hierarchy, categorizes products into five levels
based on the degree of tangibility, customization, and consumer perception of value. Here’s a brief
overview of each level:
 1. Core Benefit or Core Product:

o This represents the fundamental need or want that motivates a consumer to purchase a
product.

o Example: The core benefit of a smartphone is communication and connectivity.

2. Generic Product:

o This level involves converting the core benefit into a basic product.

o Example: A generic product of a smartphone includes features like calling, texting, and
basic internet browsing.

3. Expected Product:

o The expected product includes additional features and attributes that consumers expect
to find in a product category.

o Example: In a smartphone, consumers expect features such as a decent camera, long

battery life, and a user-friendly interface.

4. Augmented Product:

o The augmented product includes additional services or benefits that differentiate it from
competitors’ offerings.

o Example: An augmented product of a smartphone could include extended warranty,

customer support, exclusive apps, and accessories.

5. Potential Product:

o This represents all the possible augmentations and transformations that a product might
undergo in the future.

o Example: For smartphones, potential product developments could include integration

with artificial intelligence for personalized user experiences, enhanced health
monitoring capabilities, or even innovative forms of interaction like holographic displays.

30. What is Personal Selling? Give examples.

Personal selling is a face-to-face or direct communication method used by sales representatives to

engage with prospective customers, understand their needs, and persuade them to purchase a product
or service. Unlike other forms of promotion that are more impersonal, personal selling involves building
relationships, providing personalized information, and addressing customer concerns directly. Here’s
more about personal selling and some examples:

Characteristics of Personal Selling:

 Direct Interaction: Sales representatives interact directly with potential customers, either in
person or through communication channels like phone calls or video calls.
  Customization: Allows for customization of sales pitches and presentations based on individual
customer needs and preferences.

 Relationship Building: Focuses on building long-term relationships with customers by providing

ongoing support and personalized service.

Examples of Personal Selling:

1. Real Estate Agents:

o Real estate agents engage in personal selling by meeting with potential home buyers or
sellers, understanding their requirements, showcasing properties, and negotiating deals.

2. Insurance Agents:

o Insurance agents use personal selling techniques to meet with individuals or businesses,
assess their insurance needs, explain policy options, and assist in selecting the most
suitable coverage.

3. Financial Advisors:

o Financial advisors engage in personal selling to offer investment advice, retirement

planning services, and financial products tailored to clients' financial goals and risk
tolerance.

4. Business-to-Business (B2B) Sales:

o Sales representatives in B2B industries engage in personal selling by meeting with

corporate clients, demonstrating products or services, negotiating contracts, and
addressing specific business needs.

5. Retail Sales:

o In retail settings, sales associates engage in personal selling by assisting customers on

the shop floor, providing product information, demonstrating features, and guiding
purchase decisions based on customer preferences.

Importance of Personal Selling:

 Relationship Building: Allows for direct interaction and relationship building, which can lead to
repeat business and customer loyalty.

 Customization: Provides an opportunity to tailor sales messages and solutions to meet individual
customer needs.

 Feedback: Enables immediate feedback from customers, allowing sales representatives to

address objections and concerns in real-time.
31. What are the steps involved in personal selling.

1. Prospecting:

 Definition: Identifying potential customers or leads who may be interested in the product or
service.

 Activities: Sales reps can prospect through referrals, cold calling, networking events, online
research, or existing customer databases.

2. Preparation:

 Definition: Gathering information about the prospect and preparing for the sales presentation.

 Activities: Researching the prospect's industry, understanding their business needs, identifying
pain points, and preparing relevant sales materials.

3. Approach:

 Definition: Initiating contact with the prospect and making a positive first impression.

 Activities: Introducing oneself professionally, establishing rapport, and setting the tone for the
sales conversation.

4. Presentation:

 Definition: Demonstrating the product or service to the prospect and explaining its features,
benefits, and value proposition.

 Activities: Tailoring the presentation to address the prospect’s specific needs, highlighting key
features, providing examples, and using visual aids or demonstrations as appropriate.

5. Handling Objections:
 Definition: Addressing any concerns, doubts, or objections the prospect may have about the
product or service.

 Activities: Actively listening to the prospect’s objections, empathizing with their concerns,
providing clarifications or additional information, and offering solutions or alternatives as
needed.

6. Closing:

 Definition: Asking for the sale or commitment from the prospect to move forward with the
purchase.

 Activities: Using closing techniques such as trial closes, summarizing benefits, overcoming final
objections, and guiding the prospect towards making a decision.

7. Follow-Up:

 Definition: After the sale is made or the commitment is secured, following up with the customer
to ensure satisfaction and build long-term relationships.
  Activities: Sending thank-you notes, providing additional support or information as needed, and
nurturing ongoing communication for future business opportunities.

32. What is Negative demand and over full demand?

“Negative demand" and "overfull demand" are concepts used in marketing and economics to describe
different scenarios regarding consumer demand for products or services:

Negative Demand:

 Definition: Negative demand occurs when consumers actively dislike or avoid a product or
service. In other words, there is a strong preference against the product, leading to a demand
that is negative or less than zero.

 Causes: Negative demand can arise due to various factors such as poor product quality, negative
brand perception, ethical concerns, or harmful effects associated with the product.

 Examples:

o Tobacco products often face negative demand due to health risks and regulatory
restrictions.

o Certain types of insurance (e.g., funeral insurance) may encounter negative demand due
to superstitions or cultural taboos associated with discussing or preparing for death.

Overfull Demand:
 Definition: Overfull demand occurs when the demand for a product or service exceeds the
available supply. It indicates a situation where consumers desire the product or service more
than what is currently available in the market.

 Causes: Overfull demand can be caused by various factors such as strong brand preference,
limited availability or production capacity, seasonal spikes in demand, or effective marketing
campaigns that create high levels of consumer interest.

 Examples:

o Limited edition sneakers or fashion items often experience overfull demand, leading to
long waiting lists or inflated resale prices in the secondary market.

o Concert tickets for popular artists can sell out within minutes, resulting in high demand
exceeding venue capacity.

Importance in Marketing:

 Strategic Considerations: Understanding negative demand helps businesses address issues such
as product improvement, reputation management, or regulatory compliance.
  Opportunity Management: Managing overfull demand allows businesses to capitalize on
opportunities by optimizing production, inventory management, pricing strategies, and customer
engagement to maximize sales and customer satisfaction

33. What is CRM? Benefits of having customer relationship management.

CRM stands for Customer Relationship Management. It refers to strategies, practices, and technologies
that companies use to manage and analyze customer interactions and data throughout the customer
lifecycle, with the goal of improving customer relationships, retention, and driving sales growth. Here's
an overview of CRM and its benefits:

Benefits of Customer Relationship Management (CRM):

1. Improved Customer Relationships:

o CRM systems help businesses build stronger and more personalized relationships with
customers by storing comprehensive customer data, including preferences, purchase
history, and interactions. This enables businesses to understand customer needs better
and provide more targeted and personalized service.

2. Enhanced Customer Satisfaction:

o By using CRM tools to track customer interactions and preferences, businesses can
anticipate customer needs, resolve issues proactively, and deliver consistent and
exceptional customer service. This leads to higher levels of customer satisfaction and
loyalty.

3. Increased Sales and Revenue:

o CRM systems provide insights into customer behavior and buying patterns, enabling
businesses to identify cross-selling and upselling opportunities. Sales teams can
prioritize leads more effectively, track sales activities, and streamline the sales process,
resulting in improved conversion rates and higher sales revenue.

4. Efficient Marketing Campaigns:

o CRM software helps businesses segment customers based on demographics, behaviors,

or purchase history. This segmentation allows for targeted marketing campaigns that are
more likely to resonate with specific customer segments, leading to higher campaign
effectiveness and ROI.

5. Better Decision-Making with Data:

o CRM systems gather and analyze customer data, providing businesses with valuable
insights into market trends, customer preferences, and competitor activities. This data-
driven approach helps businesses make informed decisions and formulate effective
marketing, sales, and customer service strategies.

6. Streamlined Business Processes:

 o CRM centralizes customer data and automates routine tasks such as scheduling follow-
ups, sending personalized emails, and tracking interactions. This improves operational
efficiency, reduces administrative workload, and allows employees to focus more on
value-added activities.

7. Improved Internal Collaboration:

o CRM systems facilitate collaboration across different departments, such as sales,

marketing, and customer service. Teams can share customer information, coordinate
activities, and work together to deliver a seamless and cohesive customer experience.

8. Scalability and Growth:

o As businesses grow, CRM systems provide scalable solutions that can accommodate
increasing customer data, users, and business complexity. This scalability ensures that
businesses can continue to effectively manage customer relationships and support
growth initiatives.

34. what is PESTEL. How PESTEL is helping companies to take right decisions?

PESTEL analysis is a strategic framework used by organizations to understand and analyze the external
macro-environmental factors that can impact their business environment. PESTEL stands for Political,
Economic, Social, Technological, Environmental, and Legal factors. Here’s how each component of
PESTEL helps companies make informed decisions:

Components of PESTEL Analysis:

1. Political Factors:

o Definition: These factors refer to the influence of government policies, regulations,

political stability, and trade tariffs on businesses.
o Impact: Political factors can affect business operations, market entry barriers, taxation
policies, government stability, and international relations. For example, changes in trade
policies or regulatory reforms can impact import/export strategies and supply chain
management decisions.

2. Economic Factors:

o Definition: Economic factors include economic growth rates, inflation rates, exchange
rates, interest rates, and economic stability.

o Impact: Economic factors influence consumer spending patterns, purchasing power,

market demand, inflation rates affecting pricing strategies, and availability of credit. For
instance, companies may adjust pricing strategies or market expansion plans based on
economic forecasts and consumer confidence levels.

3. Social Factors:
 o Definition: Social factors encompass cultural trends, demographics, lifestyle changes,
consumer attitudes and preferences, health consciousness, and social values.

o Impact: Social factors shape consumer behavior, market segmentation strategies,

product preferences, and marketing messages. Companies use insights from social
factors to tailor products, services, and marketing campaigns to align with cultural norms
and societal trends.

4. Technological Factors:

o Definition: Technological factors include advancements in technology, research and

development (R&D), automation, innovation cycles, and technological infrastructure.

o Impact: Technological factors drive innovation, product development, operational

efficiency, and competitive advantage. Companies leverage technology trends such as
digitalization, artificial intelligence, and data analytics to improve processes, enhance
customer experiences, and gain market leadership.

5. Environmental Factors:
o Definition: Environmental factors refer to ecological and environmental impacts,
sustainability practices, climate change policies, and environmental regulations.

o Impact: Environmental factors influence corporate social responsibility (CSR) initiatives,

green products/services development, waste management practices, and resource
efficiency. Companies adopt sustainable practices and comply with environmental
regulations to mitigate risks and enhance brand reputation.

6. Legal Factors:

o Definition: Legal factors include laws, regulations, industry standards, and legal
frameworks governing business operations.

o Impact: Legal factors impact business operations, compliance requirements, contractual

obligations, product safety standards, intellectual property rights, and labor laws.
Companies assess legal risks, ensure regulatory compliance, and navigate legal
complexities to mitigate liabilities and maintain ethical business practices.

How PESTEL Helps Companies Make Decisions:

 Strategic Planning: PESTEL analysis provides a comprehensive understanding of external factors

impacting business environments, enabling companies to formulate informed strategic plans and
business strategies.

 Risk Assessment: It helps in identifying potential risks, uncertainties, and opportunities

associated with external factors, allowing companies to proactively manage risks and capitalize
on emerging opportunities.

 Market Intelligence: By analyzing PESTEL factors, companies gain valuable market intelligence
and insights into industry trends, competitor actions, and customer behaviors, guiding decisions
related to market entry, product development, and resource allocation.
  Policy Advocacy: PESTEL analysis aids companies in advocating for favorable policies, influencing
regulatory decisions, and adapting business strategies in response to changing external
environments.

35. What is Boston Consulting Group (BCG) matrix? Give examples.

The Boston Consulting Group (BCG) matrix, also known as the Growth-Share Matrix, is a strategic tool
used by companies to analyze their business units or product lines based on two key dimensions: market
growth rate and relative market share. It helps businesses allocate resources and make strategic
decisions about investments, divestments, and growth strategies. Here’s how the BCG matrix is
structured and examples to illustrate:

Structure of BCG Matrix:

1. Market Growth Rate (Vertical Axis):

o Represents the growth rate of the market in which the product or business unit
operates.

o High growth markets typically offer opportunities for expansion and profitability.

2. Relative Market Share (Horizontal Axis):

o Indicates the relative market share of the product or business unit compared to its
largest competitor in the same market.

o Higher market share implies competitive strength and potential for profitability.

Quadrants in BCG Matrix:

Based on the intersection of market growth rate and relative market share, products or business units
are classified into four quadrants:

1. Stars:
o Description: High-growth, high-market-share businesses or products that are leaders in
their market.

o Strategy: Require heavy investments to sustain growth and maintain leadership position.

o Example: Apple's iPhone when it was first introduced can be considered a "Star" as it
had high market growth and high market share, requiring significant investments in R&D
and marketing.

2. Cash Cows:

o Description: Low-growth, high-market-share businesses or products that generate

significant cash flow and profits.

o Strategy: Harvesting cash flows for reinvestment in other business units or products.
 o Example: Microsoft's Office software suite is often considered a "Cash Cow" as it has a
dominant market share in a mature market with stable demand.

3. Question Marks (or Problem Children):

o Description: High-growth, low-market-share businesses or products in emerging or fast-

changing markets.

o Strategy: Require investments to increase market share and potentially become future
stars or divest if growth prospects are poor.

o Example: New product lines or innovative technologies in early stages of market

adoption, such as electric vehicles in their introductory years.

4. Dogs:

o Description: Low-growth, low-market-share businesses or products that may generate

enough cash to break-even but have limited prospects for growth or profitability.

o Strategy: Consider divestment or restructuring to minimize losses and focus on more

promising opportunities.

o Example: Outdated or declining products in mature markets with saturated demand, like
traditional landline telephones in many developed countries.

Importance of BCG Matrix:

 Resource Allocation: Helps in allocating resources effectively among different business units or
products based on their strategic importance and growth potential.

 Portfolio Management: Provides a framework for managing a diverse portfolio of products or

business units to balance risk and return.

 Strategic Planning: Guides strategic decisions such as investment priorities, product

development strategies, pricing strategies, and market entry or exit decisions.

36. 5 stages model of Buying Decision Strategy.

The 5 stages model of the buying decision process, also known as the consumer decision-making
process, outlines the steps that consumers typically go through when making a purchasing decision.
Here are the stages:

1. Need Recognition:

 Definition: The buying process begins when the consumer recognizes a need or problem that
needs to be solved or fulfilled.

 Trigger: Needs can arise from internal stimuli (e.g., hunger, thirst) or external stimuli (e.g.,
advertising, recommendations).
  Example: A consumer realizes their smartphone is outdated and needs a new one with better
features.

2. Information Search:

 Definition: After recognizing a need, consumers gather information about available options to
satisfy that need.

 Sources: Information can be sought from personal experiences, friends and family, online
reviews, advertisements, or sales representatives.

 Example: The consumer researches different smartphone brands, reads reviews, compares
features, and visits stores to gather information.

3. Evaluation of Alternatives:

 Definition: Consumers evaluate and compare different alternatives based on criteria such as
price, quality, features, brand reputation, and personal preferences.

 Considerations: This stage involves weighing the pros and cons of each alternative to make an
informed decision.

 Example: The consumer compares several smartphone options based on camera quality, battery
life, price, and brand reputation.

4. Purchase Decision:

 Definition: After evaluating alternatives, the consumer makes a decision to purchase the chosen
product or service.

 Factors: Purchase decisions can be influenced by factors like availability, pricing promotions,
payment options, and personal preferences.

 Example: The consumer selects a specific smartphone model, considers financing options, and
decides to make the purchase online or in-store.

5. Post-Purchase Behavior:

 Definition: After purchasing the product, the consumer evaluates their satisfaction with the
purchase and the overall experience.

 Outcomes: Satisfaction may lead to repeat purchases, positive word-of-mouth

recommendations, and brand loyalty. Dissatisfaction could lead to returns, complaints, or
negative reviews.

 Example: The consumer uses the new smartphone, evaluates its performance, and shares their
experience with friends or on social media.
37. Porter's five forces theory

Porter's Five Forces is a framework developed by Michael Porter that analyzes the competitive
environment within an industry. It helps businesses assess the attractiveness and profitability of entering
or operating within a particular industry by examining five key forces that shape competition and
influence industry dynamics. Here are the components of Porter's Five Forces:

1. Threat of New Entrants:

 Definition: This force assesses how easy or difficult it is for new competitors to enter the
industry and compete with existing firms.

 Factors: Barriers to entry such as high capital requirements, economies of scale, proprietary
technology, government regulations, and brand loyalty.
 Impact: High barriers deter new entrants, reducing competitive intensity and protecting
profitability for existing firms. Low barriers attract new entrants, increasing competition.

2. Bargaining Power of Suppliers:

 Definition: Suppliers' bargaining power refers to their ability to influence pricing, quality, and
terms of supply within the industry.

 Factors: Concentration of suppliers, availability of substitute inputs, switching costs, and

importance of suppliers' products to the industry.

 Impact: Powerful suppliers can raise prices, reduce quality, or limit supply, squeezing industry
profitability. Weak suppliers are less influential, allowing firms to negotiate better terms.

3. Bargaining Power of Buyers:

 Definition: Buyers' bargaining power is the ability of customers to influence price, demand
better quality or service, or seek alternative suppliers.

 Factors: Concentration of buyers, price sensitivity, switching costs, and availability of substitutes.

 Impact: Powerful buyers can negotiate lower prices, demand higher quality, or switch to
competitors, reducing industry profitability. Weak buyers give firms more control over pricing
and conditions.

4. Threat of Substitute Products or Services:

 Definition: Substitute products or services are alternatives that fulfill the same customer needs
or functions as the industry's offerings.

 Factors: Availability of substitutes, relative price/performance of substitutes, and switching costs

for customers.

 Impact: High availability of substitutes limits pricing power and reduces profitability. Fewer
substitutes increase industry attractiveness by preserving demand for existing products/services.

5. Industry Rivalry among Existing Competitors:

 Definition: Industry rivalry measures the intensity of competition among existing firms in the
industry.

 Factors: Number of competitors, industry growth rate, differentiation among products/services,

exit barriers, and strategic stakes.

 Impact: Intense rivalry leads to price wars, aggressive marketing, and innovation to gain market
share, reducing profitability. Moderate rivalry allows firms to compete more profitably.