Marketing

Q1: What is marketing?

A1: Marketing is a process of identifying, anticipating and satisfying customer needs profitably.

Q2: What is Kotler’s marketing concept?

A2: According to Kotler, marketing is about to understand and anticipate the needs of target market and
satisfying the needs more efficiently and effectively than the competitor.

Q3: What are the four component of Kotler’s marketing concept?

A3: These are,
1. Identify target market.
2. Identify and anticipate customer’s needs.
3. Meet customers expectations.
4. Achieve profitably.

Q4: Define the David Jobber’s business approaches related to marketing.

A4: David Jobber defines the two approaches company’s usually follow one is Market oriented and the
other is Internal oriented or production-oriented approach.
1. Market Oriented Approach: Organisation activities are focused on providing customer
satisfaction and segment the market based on customer differences.
2. Internal or Production Oriented Approach: It involves focusing on production convenience
rather than customer or market focus. In this approach market is segmented based on product.

Q5: What is marketing audit?

A5: Marketing audit is a 'a systematic examination of a business's marketing environment,
objectives, strategies, and activities, with a view to identifying key strategic issues, problem areas
and opportunities. It also provides the answers to the following questions.
1. Where are we now?
2. How did we get here?
3. Where are we heading?
4. How we are going to achieve are goals?
Key Point: The internal marketing audit focuses on those areas which are under the control of
marketing management, whereas the external marketing audit looks at those forces over which
marketing has no control (e.g. GDP growth).

Q7: What are the Five aspects of Marketing audit?

A7: Marketing audit Five aspects are.
1. Market Analysis: Understanding the market size and growth. Customer analysis, competitor
analysis, supplier analysis.
2. Strategic Issues Analysis: Determine what are the key issues the company is facing to meet its
target.
3. Review of Marketing Mix Effectiveness: Marketing mix i.e. price, place, product and
promotion.
 4. Marketing Department Structure: Does the marketing department structure support and
facilitate the strategy and help to exploit market?
5. Marketing system: Evaluate the effectiveness of marketing information system, planning system
and control system in supporting marketing activities and decision making.

Q8: Define the role of management accountant in marketing?

A: The role of management accountant is to provide the company the necessary information it require to
market its product successfully. However, the management accountant must determine the nature of the
information he need. To gather information, he needs to know the managements’ view of marketing it is.
1. Product View
2. Customer View

Q9: Define Customer View and Product View of marketing.

1. Customer View: The customer view believes that customers are the source of revenue and, as
such, customer relationships and loyalty are the drivers of success.
2. Product View: The product view follows the idea that the products a company sells are the
source of its earnings and so the more products a company sells, the greater its revenues will be.

Marketing
View

Product Customer
View View

Direct
Customer Customer
Branding Product
Relationship Loyalty
Profitability

Q10: What is Direct product profitability analysis?

Ans: Direct Product Profitability (DPP) analysis measures the actual profit a product generates by
accounting for all costs directly associated with it, including production, distribution, and handling costs.
This helps businesses understand the true profitability of each product and make informed decisions
about pricing, product lines, and inventory management.

Q11: What is brand? Why branding is important?

A: Brand is a trademark, name, sign, symbol, design or combination of them that differentiate the one
seller or group of seller product from the other. Following are the benefits of brand.
1. It is form of product differentiation that can make it possible to charge premium prices.
2. It enables the company to differentiate the product from those of competitor.
3. Brand helps to create customer loyalty and relationship.
4. Strong brand becomes company’s valuable intangible asset.
5. It makes manufacturers goods stronger and reduces retail forces.
6. Strong brand form barriers to entry.
7. Brands have usually much longer life cycle then product.
8. A strong brand name allows a firm to enter unfamiliar market more quickly and with less efforts.
Q11: What are Brand Strategies?
1. Line Extension: Introduction of new product with the existing brand name in same category. For
example. Pepsi, Pepsi Diet.
2. Brand Extension: Introduce new product with the existing brand name in new category. For
example, LG Mobile, LG Refrigerator.
3. Multi branding: Introducing multiple products with same brand name in same category. For
example, Audi, Ford, Volkswagen all are owned by same company.
4. New Brand; Introduce new brand name in new category.
5. Co Branding: Two brands are combined in an offer.

Q12: What is market segmentation?

A: Segments are groups of customers with similar needs that can be targeted with a distinct marketing
mix. Both consumer and industrial markets can be segmented, and the aim is to identify coherent
segments that are both valid and attractive.

Q13: What are the criteria for selecting the segmentation?

A: Segment must be Valid and attractive. (MADSA)
1. Segment Validity: For a segment to be considered valid it should be worth creating a separate
marketing mix for the segment and the segment should meet the following criteria.
a. Measurable: Can the segment be measured reliably?
b. Accessible: Is the segment accessible by using the organisations distribution and
promotional resources.
c. Differentiable: Does the segment report differently to different marketing mix?
d. Substantial: Is the segment large enough to be profitable.
e. Actionable: The organisation can exploit the potential using its resources.
2. Segment Attractiveness: The most attractive segments are those whose needs can be met by
building on the company strengths and where forecast for demand, sales profitability and growth
are favourable.

Q14: Segmentation process?

1. Analyse and define market segment
2. Test segment validity
3. Choose a competitive segmentation strategy
4. Develop an appropriate marketing mix

Q15: Relationship marketing and customer loyalty?

A: Relationship marketing means using marketing resources to retain customer rather than making one
off sale. It focuses on establishing loyalty among the existing customers.

Q16: Key Points in Relationship marketing.

1. Company should focus on to retain high volume high profit customers as well as those with
strong potential to become high profitable in future.
2. Relationship marketing is use of marketing resources to maintain and exploit a firms existing
customer.

Q17: Why CRM is important?

1. It is cheaper to retain existing customers rather than attract new one.
2. In mature markets existing customers provide the most likely future earnings.
3. Strategy to introduce new product will not be sensible if existing customer could not be retained.
Q18: Phases of CRM.
1. Customer Acquisition
2. Customer Retention
3. Customer Extension

Q19: Framework for assessing the service quality (SERVQUAL) (RATER)

A: SERVQUAL (Service Quality) is a methodology used to assess the quality of a services in term of five
dimensions and customer’s feedback is taken is sought in relation to them.
1. Tangibles: Make services tangibles as much as possible. For example, airline staff dresses, up to
date equipment’s, well trained staff.
2. Reliability: For example, are goods dispatched on time, does the services match with the
advertisement.
3. Responsiveness: Willing to help customers and provide prompt services.
4. Assurance: Knowledge and courtesy of employees and their ability to inspire trust and
confidence.
5. Empathy: Caring, individualized attention the firm provides its customers.

Q20: Application of Servqual

A: There are 3 stages of servqual application.
1. Identifying gap through research about customer expectations.
2. Benchmarking the standard of service quality.
3. Customer Feedback.
Q21: Difference b/w transactional vs relationship marketing.

Q22: Payne Six Market Model (SIR ICE)

A: Payne identified the 6 market that organisation should consider while developing its strategies. These
are.
1. Customer Market
2. Supplier Market
3. Employee Market
4. Referral Market
5. Influencer Market
6. Internal Market

Q23: Read these topics from book

1. Customer Portfolio Analysis Read from P# 387
2. Customer Analysis and Customer Profitability Analysis from P# 389

Q24: Customer Life Cycle Value

A: Customer life cycle value is the present value of future cash flow expected to be drive from the
specific customer throughout the life of relationship with the company. CLV shows how much each
customer worth to an organization.

Q25: What is churn rate?

A: The rate of customers who will stop using the organizations product or services within specified
period.

Q26: What is data mining?

A: Data mining is a process of discovering the relationship b/w large amount of data using statistical,
mathematical and computational techniques. It involves analysing data with different perspective and
summarizing it in useful information that can be used for decision making and predicting future trends.

Q27: 6I’s of E-Marketing (P#400)

A: The 6I’s of e-marketing is a model that define 6 elements for developing and executing effective
online marketing strategies.

The characteristics of e-marketing can be summarized as 6I’s.

 1. Independence of location: The ability to access and deliver marketing content irrespective of
geographical constraints.
2. Industry structure: The impact of digital technology on traditional industry structure and
value chain.
3. Integration: The ability to get customer preferences knowledge and sharing it will all parts of
the organization so that more specific product and services can be dispatched.
4. Interactivity: The degree to which user can participate and give his input for improvement of
marketing content.
5. Individualism: The customization of marketing messages and experience for individual user.
6. Intelligent Analyse: The ability to gather and analyse data about market condition and
customer.

Q28: What is target market?

A: Because of limited resources, competition and large market with different type of customers with
different needs its not possible for the companies to cater all the people or organisation. So