Module 1 IMP QnA

Q1. What Is Marketing? Basic concept of marketing

- Marketing entails processes that focus on
delivering value and benefits to customers, not
just selling goods and services.
- Marketing is the activity, set of institutions, and
processes for creating, communicating,
delivering, and exchanging offerings that have
value for customers, clients, partners, and
society at large.
- The basic concept of marketing can be broken
down into several key components:
1. Needs and Wants: Marketing begins with
identifying the needs and wants of consumers.
A need is something essential for survival, like
food or shelter, while a want is something that
is desired but not essential, like a smartphone.
2. Market Research: Understanding the target
market is crucial. This involves collecting data
on consumer behavior, preferences, and trends
to create products or services that meet their
needs.
3. Value Proposition: This is the unique value a
product or service offers to consumers. It’s
what makes a product stand out from the
competition.
4. Marketing Mix (4 Ps):
Price
Product
Place
Promotion
5. Customer Relationship Management:
Building and maintaining strong relationships
with customers to encourage loyalty and repeat
business.
6. Branding: Creating a strong, positive
perception of a company and its products in the
customer’s mind.
7. Sales and Distribution: The methods and
processes used to get the product to the
 customer, including both direct and indirect
channels.

Q2. What is to be marketed with example?

- Marketing can be applied to a wide range of
things, depending on the goals and target
audience. Here are some examples of what can
be marketed:
- 1. Products
- Physical Goods: Smartphones, clothing,
furniture, cars.
- Digital Products: Software, apps, e-books,
online courses.
-
- 2. Services
- Professional Services: Consulting, legal
services, financial planning.
- Personal Services: Hairdressing, fitness
training, personal coaching.
-
- 3. Brands
- Corporate Branding: Building a strong brand
identity for a company (e.g., Apple, Nike).
- Personal Branding: Marketing individuals such
as celebrities, influencers, or entrepreneurs.
-
- 4. Experiences
- Events:*Concerts, festivals, conferences.
- Travel and Tourism: Vacation packages, hotel
stays, guided tours.
-
- 5. Ideas
- Public Awareness Campaigns: Health
initiatives, environmental protection, social
justice movements.
- Political Campaigns: Candidates, policies,
causes.
-
- 6. Content
- Media and Entertainment Movies, TV shows,
podcasts, books.
- Educational Content: Online courses,
webinars, tutorials.
-
- 7. Causes
- Non-profit Organizations: Fundraising for
charities, promoting volunteer opportunities.
- Social Causes: Environmental sustainability,
human rights, community development.
-
- Example:
- Product: A new eco-friendly detergent.
- Marketing Focus: Highlight its effectiveness,
natural ingredients, and environmental
benefits to appeal to environmentally-
conscious consumers.
-
- Everything from tangible products to abstract
ideas can be marketed if there is a value
proposition and a target audience
interested in it.
Q3 Difference between sales and marketing

Q4. Companies orientation towards the

marketplace (IMP)
Ans)- Companies can have different orientations or
approaches toward the marketplace, reflecting their
philosophy on how they interact with customers,
develop products, and manage their overall
operations.
These orientations can be classified into five
primary types:
1. Production Orientation
 Focus: Efficiency in production and distribution.
 Assumption: Customers favor products that are
affordable and widely available.
 Approach: The company focuses on mass
production, cost control, and high distribution
efficiency.
 Example: Companies that produce basic
commodities or products in bulk, such as fast-
moving consumer goods (FMCGs), often follow this
orientation.
2. Product Orientation
 Focus: Quality and innovation in products.
 Assumption: Customers prefer products that
offer the most quality, performance, or
innovative features.
 Approach: The company invests heavily in
research and development (R&D) to create
superior products, often without considering
customer preferences or needs directly.
  Example: Tech companies that continually push
the boundaries of innovation, like certain
electronics or luxury brands, may adopt this
orientation.

3. Sales Orientation
 Focus: Aggressive selling and promotion.
 Assumption: Customers need to be persuaded to
buy products through sales tactics.
 Approach: The company relies on heavy
advertising, promotions, and personal selling
efforts, often prioritizing short-term sales over
long-term customer relationships.
 Example: Insurance companies, or businesses in
highly competitive markets, might adopt a sales
orientation.

4. Marketing Orientation
 Focus: Understanding and meeting customer
needs and wants.
 Assumption: Success comes from satisfying
customers better than competitors.
 Approach: The company conducts extensive
market research to understand customer preferences
and tailors its products, services, and marketing
efforts accordingly.
 Example: Companies like Amazon and Apple,
which are known for their customer-centric
approaches, often follow a market orientation.

5. Societal Marketing Orientation

 Focus: Balancing customer satisfaction,
company profit, and societal well-being.
 Assumption: Companies should operate in a
way that benefits society at large, not just their
customers and shareholders.
 Approach: The company considers ethical,
environmental, and social impacts of its products
and operations, striving to make a positive
contribution to society.
 Example: Companies that emphasize
sustainability and corporate social responsibility
(CSR), like Patagonia or Ben & Jerry’s,
typically follow this orientation.
6. Holistic Marketing Orientation
 Focus: Integrated approach to marketing,
considering everything from brand management
to customer experience.
 Assumption: All aspects of marketing and
business activities are interconnected, and
success depends on a cohesive strategy.
 Approach: The company aligns its internal
operations, brand strategy, customer
relationships, and societal responsibilities to
create a unified and positive brand image.
 Example: Large, global brands that manage
complex marketing strategies across various
channels and markets, like Coca-Cola, may
adopt a holistic marketing orientation.
Q5. What is holistic marketing orientation?
Ans)- Holistic Marketing Orientation is an approach
that considers the entire business as a cohesive
entity, where all aspects of marketing are
interconnected and must work together to deliver a
consistent and positive experience for customers,
while also benefiting the company and society.

Key Components of Holistic Marketing Orientation

1. Integrated Marketing:
 Definition: Ensures that all marketing activities
(advertising, sales promotion, direct marketing,
public relations, etc.) are coordinated to deliver a
consistent message across all channels.
 Objective: To create a seamless experience for
customers, regardless of how they interact with
the company.
 Example: A brand that maintains a consistent
tone, style, and message across its TV ads, social
media, website, and in-store promotions.
2. Relationship Marketing:
 Definition: Focuses on building long-term
relationships with customers, employees, partners,
and other stakeholders.
 Objective: To foster loyalty and retention by
providing exceptional value and personalized
experiences.
 Example: Implementing a loyalty program that
rewards repeat customers, or creating personalized
communication strategies that engage customers on
an individual level.

3. Internal Marketing:
 Definition: Ensures that all employees within the
organization understand and support the company’s
marketing goals and strategies.
 Objective: To align the company’s internal
culture with its external brand promise, making sure
that employees at all levels contribute to delivering a
positive customer experience.
 Example: Training employees to be brand
ambassadors who live the brand values in their daily
work, ensuring that their actions reinforce the
company’s market positioning.

4. Performance Marketing:
 Definition: Involves tracking the financial and
non-financial returns from marketing activities,
such as market share, customer acquisition costs,
customer lifetime value, and brand equity.
 Objective: To ensure that marketing efforts are
aligned with business objectives and deliver
measurable results.
 Example: Using data analytics to measure the
effectiveness of a marketing campaign and
adjusting strategies based on performance
metrics.
5. Societal Marketing:
 Definition: Considers the broader societal impact
of the company’s marketing activities, including
ethical, environmental, and social responsibilities.
 Objective: To create a positive impact on society
while still achieving business goals.
 Example: A company implementing sustainable
practices in its production process, promoting social
causes, or engaging in corporate social responsibility
(CSR) initiatives

Benefits of Holistic Marketing Orientation

 Consistency: Delivers a unified and coherent
brand message across all touchpoints, enhancing
brand recognition and customer trust.
 Efficiency: By integrating different marketing
functions, companies can reduce redundancies
and optimize resource allocation.
 Customer-Centricity: Focuses on delivering
value to customers through personalized and
meaningful interactions, leading to stronger
customer relationships and loyalty.
  Sustainability: Balances profit-making with
ethical practices and societal contributions,
which can enhance the company’s reputation
and long-term viability.
 Adaptability: Allows companies to respond
quickly to changes in the market environment,
as all parts of the organization are aligned and
working towards common goal
Example of Holistic Marketing in Practice
A company like Coca-Cola exemplifies holistic
marketing by integrating its global marketing
campaigns, ensuring consistent messaging, and
aligning its internal culture with its external brand
image. Coca-Cola also engages in relationship
marketing through sponsorships and community
initiatives, and it considers societal impacts by
promoting recycling and sustainability in its
operations.
Q6. What is society marketing concept ?
Ans )- Societal Marketing Orientation is a business
approach that emphasizes the importance of
balancing three key considerations: company
profits, customer satisfaction, and the long-term
well-being of society.

Core Principles of Societal Marketing Orientation

1. Balancing Interests:
 Focus: A societal marketing approach requires
companies to consider not just their own profits and
customer satisfaction, but also how their products,
services, and business practices affect society at
large.
 Objective: To achieve a balance between meeting
the immediate needs of consumers and contributing
positively to society’s long-term welfare.
 Example: A company that produces eco-friendly
products, even if the production costs are higher,
because it benefits the environment.
2. Sustainability
 Focus: Companies are encouraged to adopt
sustainable practices that protect the environment
and ensure that resources are available for future
generations.
 Objective: To reduce the negative impact of
business operations on the environment and promote
sustainable development.
 Example: Implementing recycling programs,
reducing carbon emissions, or using renewable
energy sources in production processes.

3. Ethical Practices:

 Focus: Ethical considerations are central to

societal marketing. Companies must ensure that their
operations are fair, transparent, and responsible.
 Objective: To build trust and credibility by
acting in a manner that is morally right and
beneficial to society.
  Example: A company ensuring fair labor
practices in its supply chain, avoiding
exploitation, and providing safe working
conditions.

4. Social Responsibility:
 Focus: Companies are encouraged to engage in
activities that contribute to the social good, such as
supporting charitable causes, improving community
welfare, and addressing social issues.
 Objective: To enhance the company’s role as a
good corporate citizen, contributing positively to the
community and society.
 Example: Initiating programs to support
education, healthcare, or social justice, and donating
a portion of profits to these causes

5. Consumer Education:
 Focus: Educating consumers about the societal
impacts of their purchasing decisions, encouraging
them to make choices that are better for society and
the environment.
 Objective: To empower consumers with the
knowledge to make informed decisions that align
with societal well-being.
 Example: A company promoting the benefits of
using products made from sustainable materials or
raising awareness about the environmental impact of
certain products.

Benefits of Societal Marketing Orientation

 Enhanced Brand Reputation: Companies that
adopt a societal marketing orientation often gain a
stronger, more positive reputation among
consumers, leading to greater brand loyalty.
 Long-Term Profitability: While the focus is on
societal well-being, companies can also benefit from
increased customer loyalty and brand differentiation,
which can lead to long-term profitability.
 Positive Social Impact: Companies contribute to
the betterment of society, helping to address
important social, environmental, and ethical issues.
 Risk Management: By focusing on ethical
practices and sustainability, companies can reduce
the risk of legal issues, boycotts, or negative
publicity

Example of Societal Marketing in Practice

The Body Shop, a global cosmetics brand, is a prime
example of societal marketing orientation. The
company is committed to ethical sourcing, cruelty-
free products, and environmental sustainability. It
also runs campaigns on social issues like human
rights and animal welfare. By focusing on these
broader societal concerns, The Body Shop has built
a strong brand identity that resonates with socially
conscious consumers.
Q7. What is marketing mix, and what are the 4P’s
of marketing?
Ans)- The Marketing Mix is a foundational concept
in marketing that refers to the set of actions or
tactics a company uses to promote its brand or
product in the market. The traditional marketing
mix is often referred to as the 4 Ps:
The 4 Ps of Marketing
1. Product
 Definition: The actual goods or services offered
by a company to meet the needs and wants of
consumers.
 Key Considerations:
 Product Features: What makes the product
unique or desirable.
 Design and Quality: The look, feel, and
durability of the product.
 Branding: The identity of the product, including
name, logo, and image.
 Packaging: How the product is presented to
consumers.
  Product Lifecycle: Stages a product goes
through from introduction to decline.
 Example: Apple’s iPhone, which is known for its
sleek design, advanced technology, and strong brand
identity.

2. Price
 Definition: The amount of money consumers are
willing to pay for a product or service.
 Key Considerations:
 Pricing Strategy: Setting a price that reflects
the perceived value of the product and matches
consumer expectations.
 Cost-Based Pricing: Calculating price based on
production costs plus a markup.
 Value-Based Pricing: Setting price based on the
perceived value to the customer rather than the
cost of production.
 Competition-Based Pricing: Setting a price in
relation to what competitors are charging.
 Discounts and Offers: Strategies to attract
price-sensitive customers.
 Example: Tesla’s pricing strategy, which reflects
its premium brand positioning in the electric vehicle
market.
3. Place
 Definition: The distribution channels and
locations where the product is available for
purchase.
 Key Considerations:
 Distribution Channels: How the product gets
from the manufacturer to the consumer (e.g.,
direct sales, retailers, online platforms).
 Market Coverage: Deciding whether to sell
through an intensive (widespread), selective
(limited), or exclusive (restricted) distribution
strategy.
 Logistics: How products are stored, handled,
and transported to ensure they reach customers
in good condition and on time.
 Retail Locations: Physical or online locations
where the product is sold.
 Example: Amazon, which uses a vast network of
warehouses and delivery options to ensure products
reach customers quickly and efficiently.

4. Promotion:
 Definition: The activities used to communicate
the product’s benefits and persuade customers to
purchase it.
 Key Considerations:
 Advertising: Paid media to promote the product
(e.g., TV, online ads).
 Sales Promotions: Short-term incentives to
boost sales (e.g., discounts, coupons).
 Public Relations: Building and maintaining a
positive public image.
 Personal Selling: Direct interaction between the
sales force and customers.
 Social Media Marketing: Engaging with
customers through social platforms.
 Example: Coca-Cola’s global advertising
campaigns that use a consistent brand message to
connect with consumers emotionally.

Q8. Meaning of segmentation and basis of

segmentation.
Ans)- - Segmentation in marketing refers to the
process of dividing a broad consumer or business
market into smaller, more manageable sub-groups,
or segments, of consumers who share similar
characteristics, needs, behaviors, or preferences.
- The goal of segmentation is to enable a
company to tailor its marketing efforts more
effectively to different groups, leading to better
satisfaction of customer needs and, ultimately,
improved marketing efficiency and
effectiveness.
Basis of Segmentation
1. Demographic Segmentation
 Definition: Dividing the market based on
demographic variables such as age, gender, income,
education, occupation, family size, marital status,
and ethnicity.
 Examples:
 Age: Products targeted at specific age groups,
like toys for children or retirement plans for
older adults.
 Income: Luxury brands targeting high-income
consumers, while budget brands focus on lower-
income segments.
 Family size: growth in single person households
has created new demands
 Gender: Men and women have different
attitudes and behave differently, based partly on
genetic makeup and partly on socialization
 Ethnic: A particular type of marketing that
caters to those in a specific nationality or ethnic
group.
 Family life cycle: Life stage defines a person’s
major concern, such as going through a divorce,
going into a second marriage, taking care of an
older parent, deciding to cohabit with another
person, buying a new home, and so on.
2. Geographic Segmentation
 Definition: Dividing the market based on
geographic location, such as region, country, city,
climate, or population density.
 Examples:
 Region: A company offering different products
in different regions based on local preferences or
needs (e.g., spicy food variants in certain
regions).
 Climate: Marketing winter clothing in colder
regions and beachwear in warmer climates.
3. Psychographic Segmentation
 Definition: Dividing the market based on
lifestyle, personality traits, values, opinions,
interests, and social status.
 Examples:
 Lifestyle: Health-conscious individuals might be
targeted with organic or fitness-related products.
 Personality: Brands targeting adventurous
individuals with outdoor gear and extreme sports
equipment.
  Motives: Marketers might appeal to emotional,
rational, or status motives, among others.
4. Benefits Sought
Definition: Benefits sought segmentation involves
dividing the market based on the specific benefits
or value that consumers seek from a product or
service.

Examples:
 Toothpaste: Some consumers might seek a
toothpaste that offers cavity protection, while
others might prioritize whitening, freshness, or
sensitivity relief. Different brands may target
these specific segments with specialized
formulas.
 Automobiles: A car manufacturer might
segment the market into groups seeking fuel
efficiency, safety features, luxury, or
performance, and design specific models or
marketing campaigns to appeal to each of these
segments.
5. Usage Rate
Definition: Usage rate segmentation involves
categorizing consumers based on how frequently
they use a product or service. Customers can be
divided into segments such as heavy users, medium
users, light users, or non-users.

Examples:
 Streaming Services: Heavy users might receive
recommendations for exclusive content or
premium subscriptions, while light users might
be targeted with offers to increase engagement,
such as free trials or personalized content
suggestions.
 Airlines: Frequent flyers might be offered
rewards programs, priority boarding, or special
promotions, while occasional travelers could be
incentivized with discounts on future bookings
to encourage repeat usage.
Q9. Describe some targeting strategies.
Ans)- Targeting strategies in marketing refer to the
methods companies use to select and prioritize the
segments of the market they want to focus on.
Once a market has been segmented, a company
needs to decide which segments to target and how
to approach them effectively.
Types of Targeting Strategies
1. Undifferentiated Targeting Strategy
Definition:
The undifferentiated targeting strategy, also known
as mass marketing, involves treating the entire
market as a single segment. The company develops
one product or marketing mix aimed at the broadest
possible audience, with the assumption that the same
offering will appeal to all consumers.
Key Features:
 One Size Fits All: There is no attempt to tailor
the product or marketing to specific segments;
instead, a single, universal approach is used.
  Broad Appeal: The focus is on creating a
product that satisfies the common needs of a
large group of people.
Advantages:
 Cost Efficiency: Producing and marketing one
product for the entire market can reduce costs
through economies of scale.
 Simplicity: Managing a single marketing
strategy is less complex than handling multiple
targeted campaigns.
Challenges:
 Lack of Customization: May not fully meet the
specific needs of different customer groups,
leading to lower customer satisfaction.
 Intense Competition: Competitors who focus
on specific segments might offer more tailored
and attractive options to consumers.
Example:
The classic example is Coca-Cola in its early days,
where the company marketed one soft drink product
to everyone without differentiating between different
consumer groups.
2. Concentrated Targeting Strategy
Definition:
The concentrated targeting strategy, also known as
niche marketing, involves focusing all marketing
efforts on a single, well-defined segment of the
market. The company aims to meet the specific
needs of this narrow segment more effectively than
competitors who target a broader audience.
Key Features:
 Specialization: The company tailors its
products, marketing, and services to the specific
needs of the chosen segment.
 Deep Customer Understanding: A
concentrated strategy often allows the company
to develop a deep understanding of the segment,
leading to strong customer loyalty.
Advantages:
 Strong Market Position: By focusing on a
niche, the company can become a leader in that
segment, often enjoying higher loyalty and
reduced competition.
  Resource Efficiency: Resources are
concentrated on one segment, making it easier to
manage and potentially more cost-effective.
Challenges:
 Limited Growth: The size of the niche market
may limit the potential for expansion and
revenue growth.
 Higher Risk: The company’s fortunes are
closely tied to the success of a single market
segment. If that segment declines, the
company’s overall performance could be at risk.
Example:
Rolls-Royce targets a niche market of ultra-luxury
automobile buyers. They focus on a very specific
segment of wealthy individuals who seek
exclusivity, high performance, and unparalleled
craftsmanship in their vehicles.
3. Multisegment Targeting Strategy

Definition:
The multisegment targeting strategy, also known as
differentiated marketing, involves targeting several
different market segments with separate and distinct
marketing mixes for each. The company develops
unique products or variations and marketing
strategies tailored to the needs of each segment.
Key Features:
 Multiple Segments: The company identifies and
targets two or more distinct segments, each with
its own marketing strategy.
 Customization: Each segment receives a
marketing mix that is designed to appeal
specifically to its unique characteristics.
Advantages:
 Increased Market Coverage: By targeting
multiple segments, the company can capture a
larger share of the market.
 Risk Diversification: Targeting multiple
segments reduces the company’s dependence on
 any single segment, spreading risk across
different markets.
Challenges:
 Higher Costs: Developing and managing
multiple marketing strategies and product lines
can be resource-intensive and costly.
 Operational Complexity: Coordinating
different marketing strategies across segments
can increase the complexity of operations.
Example:
Toyota uses a multisegment strategy by offering a
wide range of vehicles, from economy cars like the
Toyota Corolla to luxury models like the Lexus
brand. Each model targets different consumer
segments with distinct needs and preferences.
Q.10 ) What are the criteria for segmentation with
example.
Ans)- Segmentation involves dividing a market into
distinct groups of buyers with different needs,
characteristics, or behaviors.
Here are the main criteria for segmentation, along
with examples for each:
1. Geographic Segmentation

Criteria:
 Region: Different regions may have distinct
preferences or needs.
 Country: Cultural, economic, and legal
differences influence market needs.
 City or Urban/Rural: Preferences can vary
between urban and rural areas.
 Climate: Weather conditions affect product
needs and usage.
Examples:
 Clothing Brands: Companies like Patagonia
market outdoor gear differently in colder,
 mountainous regions compared to warmer,
coastal areas.
 Food Products: McDonald’s adjusts its menu
offerings to local tastes and preferences, such as
offering McSpicy Paneer in India and the
Teriyaki Burger in Japan.
2. Demographic Segmentation

Criteria:
 Age: Different age groups have varying
preferences and needs.
 Gender: Products or marketing messages might
be tailored specifically for men or women.
 Income: Different income levels can determine
the type and quality of products desired.
 Education: Education levels can influence
buying behavior and product choices.
Examples:
 Automobiles: Luxury car brands like Ferrari
target high-income individuals, while budget
brands like Kia cater to a broader income range.
 Beauty Products: Companies like Maybelline
offer different product lines for teenagers versus
older adults, addressing different skin concerns
and preferences.
3. Psychographic Segmentation

Criteria:
 Lifestyle: People with similar lifestyles may
have similar buying behaviors (e.g., health-
conscious vs. convenience-seeking).
 Personality: Personality traits such as
adventurousness or conservativeness can
influence preferences.
 Values and Beliefs: Products can be marketed
based on shared values or ethical considerations.
Examples:
 Fitness Products: Brands like Lululemon target
fitness enthusiasts who value both performance
and style.
 Eco-Friendly Products: Patagonia appeals to
consumers who prioritize environmental
sustainability and ethical practices.
4. Behavioral Segmentation

Criteria:
 Usage Rate: Differentiates between heavy,
medium, and light users.
  Brand Loyalty: Focuses on consumers who are
loyal to a particular brand.
 Benefits Sought: Identifies what specific
benefits customers are looking for in a product.
 Buying Occasion: Targets consumers based on
specific occasions or needs (e.g., holidays,
special events).
Examples:
 Fast Food Chains: Companies like Starbucks
target heavy users with loyalty programs and
rewards, while offering promotions to attract
occasional customers.
 Skincare Products: Different product lines
might cater to consumers seeking anti-aging
benefits versus those looking for acne treatment.
Q.11) Meaning of brand positioning and basis of
positioning and repositioning.
Ans)- Brand Positioning: The act of designing a
company’s offering and image to occupy a
distinctive place in the minds of the target market.
- It involves crafting a distinct image or identity
for a brand that resonates with a specific target
audience. Effective brand positioning helps a
brand stand out in a crowded marketplace and
aligns the brand's offerings with the needs and
preferences of its target customers.

Basis of Positioning:

1. Product Attribute: Positioning based on specific

features or attributes of the product that are
important to consumers.
 Example: Dyson positions its vacuum cleaners
based on advanced technology and superior
suction power.
2. Price/Quality: Positioning based on the price and
perceived quality of the product.
 Example: Rolex positions itself as a luxury
brand with high quality and exclusivity,
commanding a premium price.
3. Usage Occasions: Associating the brand with
specific occasions or situations in which the product
is used.
 Example: Gatorade positions itself as the drink
for athletes and intense workouts, promoting its
role in hydration and performance enhancement.
4. User Persona: Targeting a specific type of user or
consumer demographic.
 Example: Harley-Davidson positions itself as
the brand for rugged, freedom-loving
motorcyclists, appealing to a particular lifestyle
and persona
 Louis Phillips: Premium, sophisticated formal
wear for men
 Van Heusen: Formal executive wear for men
(25- 45 years)
 Allen Solly: Premium casual wear
  Peter England: Mid priced formal wear
5. Competitor Comparison: Positioning the brand
in relation to its competitors by highlighting what
makes it superior or different.
 Example: Pepsi often positions itself as a
youthful and fun alternative to Coca-Cola,
appealing to a younger audience with its
marketing campaigns.
6. Benefits: Emphasizing the benefits or solutions
that the product provides to consumers.
 Example: Olay positions its skincare products
based on anti-aging benefits, highlighting their
effectiveness in reducing wrinkles and
improving skin texture.
7. Emotional Positioning: Emotional positioning
involves aligning a brand’s messaging and image
with the emotional needs and desires of its target
audience.
Repositioning
Definition: Repositioning involves changing the
brand’s existing positioning in the market to better
align with new market conditions, consumer
preferences, or competitive dynamics.

Reasons for Repositioning:

 Changing Market Trends: Adapting to shifts
in consumer preferences or emerging market
trends.
 Competitive Pressure: Responding to new
competitors or changes in the competitive
landscape.
 Brand Decline: Revitalizing a brand that is
losing relevance or experiencing declining sales.
 Expansion: Targeting new market segments or
geographical regions.
Examples of Repositioning:
- The case of Maggi noodles is a well-known
example of brand repositioning, particularly in
the context of crisis management and
rebranding after a significant market challenge.
Module 2 IMP QnA
Q1)- Meaning of product and five levels of product
ANS)- Anything that can be offered to a market to
satisfy a want or need. It including physical goods,
associated services, experiences, events, persons,
places, properties, organizations, information, and
ideas.

Five Levels of Product

1. Core Benefit

Definition:
The core benefit is the fundamental need or problem
that the product addresses for the customer. It's the
primary reason why the customer is purchasing the
product.
Example:
For a hotel stay, the core benefit is providing a place
to sleep and rest.
2. Basic Product
Definition:
The basic product is the tangible or fundamental
version of the product that delivers the core benefit.
It includes the essential features and functionalities
that fulfill the core need.
Example:
For the hotel, the basic product would be a room
with a bed, a bathroom, and basic amenities.
3. Expected Product
Definition:
The expected product includes the attributes and
conditions that customers typically expect from the
product. It encompasses the standard features and
quality that customers assume will be present.
Example:
For the hotel, this might include clean rooms,
comfortable bedding, air conditioning, and basic in-
room amenities like a television and Wi-Fi.
4. Augmented Product
Definition:
The augmented product refers to additional features,
services, or enhancements that go beyond customer
expectations and add extra value. These are often
differentiators that help the product stand out from
competitors.
Example:
For the hotel, augmented features could include
complimentary breakfast, a fitness center, concierge
services, or a spa.
5. Potential Product
Definition:
The potential product encompasses all possible
augmentations and transformations that the product
could undergo in the future. It's about envisioning
future innovations and improvements that could
enhance the product's value.
Example:
For the hotel, potential product innovations might
include advanced technology like virtual reality
room previews, personalized room settings
controlled via a mobile app, or sustainable and eco-
friendly practices.

Q2) Types of consumer goods and industrial Goods

Ans)- Consumer-Goods Classification
1. Convenience product
- Bought frequently, immediately with minimum
comparison and buying effort.
- Are low priced
- Available in many locations
EX. Soap, candy, newspapers, fast food

2. Shopping Product
- Characteristically compared on the basis of
suitability, quality, price and style while selection
and purchase.
- Distributed through fewer outlets
e.g. Furniture, clothing, used cars, major appliances,
hotel and airline services

3. Specialty Product
- Has unique characteristics or brand identification
for which a significant group of buyer is willing to
make a special purchase effort.
- ex. Specific brands, types of cars, high priced
photographic equipment, designer clothes, services
of medical/ legal specialists
4. Unsought Product
• Consumer either does not know about/ know
about but does not normally think of buying it.
• Require a lot of advertising, personal selling and
marketing efforts.
• e.g. Life insurance, pre-planned funeral services
and blood donations.
INDUSTRIAL GOODS CLASSIFICATION
1. Materials and parts:
- These are goods that enter the manufacturer’s
product completely. They fall into two major
groups: (a) Raw materials and (b) Manufactured
materials and parts
2. Capital items:
Are long-lasting goods that facilitate developing or
managing the finished product.
3. Supplies/business services:
- Short-term goods and services that facilitate
developing or managing the finished product.
Q3) Meaning of product lifecycle(PLC). Marketing
strategy for each stage of product lifecycle.
Ans)- The Product Life Cycle (PLC) refers to the
stages a product goes through from its introduction
to the market until its eventual decline or
discontinuation. Understanding the PLC helps
companies make informed decisions about
marketing strategies, product development, and
resource allocation at each stage of the product's
life.
MARKETING STRATEGIES:
1. INTRODUCTION STAGE
A) Rapid Skimming Strategy: Introducing a new
product at high price and high promotional
expenses. The purpose of high price is to recover
profit per unit as much as possible. The high
promotional expenses are aimed at convincing the
market the product merits even at a high price.
- Eg Cornitos nachos
B) Slow Skimming Strategy: This strategy involves
launching a product at a high price and low
promotion. The purpose of high price is to recover
as much as gross profit as possible. And, low
promotion keeps marketing expenses low. Eg. pringl
C) Rapid Penetration: The strategy consists of
launching the product at a low price and high
promotion. The purpose is the faster market
penetration to get larger market share.
Eg. Balaji Chips
D) Slow Penetration: The strategy consists of
introducing a product with low price and low-level
promotion. Low price will encourage product
acceptance, and low promotion can help realization
of more profits, even at a low price.
Eg. Parle’s chips
2. Growth Stage
To sustain rapid market share growth now:
– Improve product quality and add new features
– Add new models
– Enter new market segments
– Increase distribution coverage and enter new
distribution channels ex. Online availability
– Shift from awareness and trial communications to
preference and loyalty communications
– Lower prices to attract the next layer of price-
sensitive buyers
3. Maturity Stage
- Market modification
- Product modification: quality improvement,
Feature improvement, Style improvement
- Marketing program modification
4. Decline Stage
- Eliminating Weak Products
- Harvesting and Divesting
Harvesting calls for gradually reducing a product
or business’s costs while trying to maintain
sales.
Divesting: A product with strong distribution
and residual goodwill, it can probably sell it to
another firm.
Ex. Tata Communications is the best example of
divestment strategy. It has started the process
of selling its data centre business to reduce its
debt burden.
Q4)- explain the new product development
process
Ans)- The New-Product Development (NPD)
Process is a structured approach that companies
use to develop and bring new products to market.

Stages of the New-Product Development Process

1. Idea Generation: This is the initial stage where
new product ideas are generated. Ideas can come
from various sources such as internal teams,
customers, market research, competitors, and
technological advancements.

Methods:
 Brainstorming: Collaborative sessions with
teams to generate creative ideas.
 Customer Feedback: Gathering insights and
suggestions from customers about their needs
and preferences.
  Competitor Analysis: Observing competitors’
products and identifying opportunities for
improvement.
 R&D: Leveraging research and development to
explore new technologies or innovations
2. Idea Screening: This stage involves evaluating
and filtering the generated ideas to identify which
ones are worth pursuing. The goal is to eliminate
ideas that are not feasible or do not align with the
company’s goals.

Criteria:
 Market Potential: Assessing the potential
demand and market size.
 Technical Feasibility: Evaluating if the idea can
be developed with available technology and
resources.
 Financial Viability: Analyzing the cost, pricing,
and potential profitability.
 Strategic Fit: Ensuring alignment with the
company’s overall strategy and objectives.
3. Concept Development and Testing: In this stage,
the selected ideas are developed into detailed
product concepts. These concepts are then tested
with target customers to gather feedback and refine
the product idea.

Activities:
 Concept Development: Creating detailed
descriptions and prototypes of the product
concept.
 Concept Testing: Presenting the concept to
potential customers through surveys, focus
groups, or product demos to gauge their
reactions and preferences.
4. Marketing strategy development: involves
creating a detailed plan to introduce and promote
the product effectively in the market
5. Business Analysis: This stage involves analyzing
the commercial aspects of the product concept,
including cost, revenue projections, and
profitability. It helps determine whether the
product is financially viable and supports the
business case.

Activities:
 Cost Estimation: Calculating production,
marketing, and distribution costs.
 Revenue Forecasting: Estimating potential
sales volume and pricing strategies.
 Break-Even Analysis: Determining how long it
will take to cover the costs and start making a
profit.
6. Product Development: This stage involves
creating the actual product, including detailed
design, engineering, and manufacturing processes.
It focuses on turning the concept into a tangible
product ready for market introduction.

Activities:
 Design and Engineering: Developing detailed
product designs and prototypes.
 Testing and Refinement: Conducting thorough
testing to ensure the product meets quality
standards and making necessary improvements.
  Manufacturing Planning: Establishing
production processes and sourcing materials.
7. Market Testing: In this stage, the product is
introduced to a limited market or test group to
evaluate its performance, customer acceptance,
and marketing strategies before a full-scale launch.

Activities:
 Pilot Launch: Releasing the product in a
selected market or to a specific customer
segment.
 Feedback Collection: Gathering feedback on
product performance, marketing effectiveness,
and customer satisfaction.
 Adjustments: Making final adjustments based
on test market feedback.
8. Commercialization: This is the stage where the
product is officially launched into the market. It
involves full-scale production, distribution, and
marketing efforts to reach a broad audience.

Activities:
 Marketing and Promotion: Implementing
advertising, sales promotions, and public
relations to build awareness and drive sales.
 Distribution: Rolling out the product to retail
channels, online platforms, or other distribution
networks.
 Sales and Support: Providing customer support
and managing sales processes.