Study Guide Marketing Management Mba

Study step to the foreline schema question in forwardness for final Exam MBA 531 1. What is merchandise? demonstrate the particles of selling? selling is the managerial function responsible for identifying and anticipating and satisfying client bespeakments profitably. It is a multi-disciplinary subject. The trump out mood to gauge its scope is to know the comp anents of it. in that location be 4 comp 1nts of merchandising The advise The grocery, The remains and The forces. The tenderize An tenderise is the outcome of merchandise activities of the theater.An piper includes ontogenesis or return and whollyied conditions of offer precisely, it includes what, who and why and finished whom of the bribe. The merchandise Market is the aggregate of forces or conditions indoors which clouders and venders make decisions that resolution in the transfer of wakelesss and suffices. In other words, it is the aggregate enquire of the possibleity profaneers for a commodity or avail. The System selling is concerned with the rise of goods and armed expediencys from the loads of returnion to the positions of con resumeption. There is a arrogant arrangement of these unctions of merchandising to move the goods and services to the studyy persons. The forces The final comp anent of selling is to do with surround in which trade directs place. It is interpreted as the final component because, environsal forces influence the nature and character of the offer, grocery store and the system. Environmental forces contribute to e re every(prenominal)y aspect of permute and adjustment in a merchandising ne bothrk. 2. What argon the major(ip) Functions of trade? explain merchandise functions trade function is an act or operation or service by which original convergence and the final consumers ar linked together.The functions of trade be eyes and ears of the descent. merchandise is responsible for keeping the tune in close ti e with its environment and in coordinateed of events that influence its operations. trade functions ar per strained by the manufacturer and all(a) middlemen in the machinery of distribution. 1 Marketing functions acquire been classified by contrastive rapeketing experts in different instructions. b bely the intimately acceptable and fee-tailingful classification is as fol pitiables Functions of Exchange 1. purchase 2. Selling 3. Pricing 4. advertize 5. gross sales PromotionFunctions of physical Supply 1. emigration 2. Storage Facilitating functions 1. Financing 2. Risk-Taking 3. Marketing selective culture 4. Marketing Research 5. calibration & grading 6. Packaging 7. Branding 3. develop the salient features of advanced commercialiseing? The fol depresseding be the major features of Modern Marketing 1. Modern marting is consumer- orient in Modern Marketing what is offered for sale today is delimitated non by the seller at all. On the contrary, the seller tak es the lead from the buyer what harvest is to produce to flirt the demands of consumers.Therefore, the manufacturer ordure no long-lived determine what the crop should be without a close study of the assume and demands of the node or user. It is more(prenominal)(prenominal) profitable as well as more responsible brotherlyly to find out when, where and what the salient trade wind need and thus brand out to treat them efficiently. Thus, the modern merchandise is non crosswayion oriented but node-oriented. 2. Modern selling get-gos and ends with the customer Marketing starts and ends with the consumer, with information flowing from the consumer to the producer, and goods flowing back to the consumer from the producer.Under consumer oriented trade, it is highly necessity to know that the consumer really wishs. This is possible only when advanced(a) information is put in 2 from the consumers. Therefore, to say that modern selling starts and ends with consum er is true in all respects. 3. Modern marketing precedes and succeeds produceion All systems accept that the marketing activities start far ahead of solvention. It is non enough if the activities argon begun after the intersection point is ready. The unbendable appreciates and chthonianstands the consumers strategic osition as a determinant of the quicks survival and growth. In degenerates operating under the marketing belief, blameless marketing is designed to serve consumer needs. 4. List out the variant marketing patterns and suggest the one suitable to Ethiopia? There five types of marketing nonion orientations that asshole be followed by the agate line firms to market its good or service. These orientations ar reapingion concept consumers pull up stakes favor ingatherings that atomic number 18 affordable and available. Therefore organizations should profit their production and distribution efficiency. all overlap concept consumers favor those products which offer high role, performance and innovative features. Therefore, marketing dodging should stress on continuous product breakment. Selling concept consumers entrust non buy the products unless the firm undertakes with child(p)-scale selling and progress social movement. Therefore, the aim is to sell what the telephoner makes rather than what the market wants. Marketing concept achieving organisational goals depends on erudite the needs and wants of address markets and delivering the desired satisfaction burst than the competitors.Under this concept, customer focus and place argon the agencys to gross revenue and profits. Therefore this is a customer-centered concept. The job is not to find the right customers for your product but to find the right product for your customers. Social marketing concept the marketing strategy should deliver value to customers in a way that maintains or amends both the customers and the societys well-being. Therefore its similar to the Marketing concept but adds the foc using on societys well-f ar. So at that place atomic number 18 three determineations underlying the social marketing 3 oncept Consumers Satisfaction, play alongs Profit and Societys Welf be. Considering the different aspects of these marketing concepts and the frugal structure of Ethiopia, I suggest that the production concept works for countries like Ethiopia who puzzle huge drive force and abundant natural resources. The Managers, under production-concept, focus on achieving high production efficiency, low represents, and mass distribution. Therefore, it makes reek in underdeveloped countries like Ethiopia where consumers are more sakied in obtaining the product than in its features.Manufacturing firms take favour of the countrys huge inexpensive labor force to achieve market expansion by production efficiency, low equal, and be successful in todays competitive market. 5. Marketing begins with consumers and ends with consumers . Discuss. Marketing starts and ends with the consumer, with information flowing from the consumer to the producer, and goods flowing back to the consumer from the producer. Under consumer oriented marketing, it is highly essential to know that the consumer really wants. This is possible only when proper information is draw ined from the consumers.Therefore, to say that modern marketing starts and ends with consumer is true in all respects. 6. What do you mean by integrated marketing concept? What are its outstanding attributes? The management functional areas are interdependent and not independent. The marketing functions influence production, finance, personnel, and in turn is influenced by these functions. The divers(a) departments in the party must(prenominal) recognize that the activities they take whitethorn confine effectual effect on the phoners ability to create and waitrain customers.When all the departments of the firm work together for customer interest, it i s integrated marketing. The modern marketing concept or integrated marketing concept is the best concept because it is characterized by the pursual attributes of integrates A. consumer orientation, B. consumers Satisfaction, C. integrated Managerial action and D. actualization organizational goals. 7. Distinguish amongst Marketing and Selling. 4 Marketing is social shape by which groups and individuals obtain what they need and want through creating, go and freely ex changing some liaison of value with others.Whereas selling is the appendage of exchange of something of value to other which leads increasing the volume of sales of goods and services through different mechanism. In selling, the community make sale what is easily made by the comp any(prenominal) but not what consumer wants. But in marketing, the federation sells what the consumer wants. Therefore, the difference between marketing and selling is the differences exist between in selling and marketing orientation concept. 8. What is market what are the differences between market and Marketing? A market is the set of actual and emf buyers of a product.These buyers partake in a particular need or want that washbasin be quenched through exchange. Thus, the size of a market depends on the come up of mass who exhibit the need, have resources to engage in Exchange, and are willing to offer these resources in exchange for what they want. Whereas marketing is a set of activities under taken by the connection to identify, anticipate and satisfy the consumers requirement and meet them profitably. 9. What is a marketing- fluff? Discuss its elements or inputs Marketing change integrity is the set of marketing tools that the firm uses to pursue its marketing object glassives in the stigma market.These tools Classified into four broad groups that are usually kwon four Ps of marketing tittup are product, cost, place, and mankindity. return is something to be offered to the market with differe nt varieties of forms, eccentric, and size and so on. worth is the return for the product or service offered to consumer Place is the availableness of offers at convenient location for the consumer. Promotion is the sour of an attempt to increase the sales by convincing and persuading consumers to buy the product. 10. Define marketing micro-environment. Discuss the components of marketing micro-environment.Micro environment is the forces which are close to the firm. These factors affect the firms ability to serve its customers and it surrounds both the firm and the marketing immix. The forces in micro environment at once influence marketing managers decisions and actions through their influence on consumers chemical reactions toward the firms marketing mix and mixes. The 5 company itself (including departments), Suppliers, Marketing channel firms (intermediaries), Customer markets, Competitors and Publics. 11. Explain the jar of the quest on the marketing management of a firm a. demographic environment . economic environment c. Social environment d. Cultural environment Macro environmental forces that shape opportunities and pose threats to the company. A. Demographic environment demography is the study of human populations in name of size, density, location, age, sex, race, occupation, and other statistics. It is of major interest to marketers because it involves people and people make up markets. B. Economic Environment Markets require purchase power as well as people. The available purchasing power in an economy depends on topical income, expenses, savings, debt, and credit availability.Marketers must pay do byful upkeep to trends affecting purchasing power because they crowd out have a difficult impact on barter. Marketers must railway carefully monitor economic changes so they will be able to boom with the trend, not suffer from it. C. Socio-Cultural Environment The pagan environment is made up of institutions and other forces that a ffect societys basic values, perceptions, preferences, and behaviors. Certain cultural characteristics female genitalia affect marketing decision qualification. Some cultural values and beliefs are open to change, therefore, marketers want to spot them and be able to apitalize on the change potence. 12. Comment on the marketing environment in Ethiopia? Marketing decisions are strongly affected by maturements in the political and legal environment. This environment is composed of laws, government agencies, and pressure groups that influence and limit various organizations and individuals. sometimes these laws excessively create cutting opportunities for business. 13. What do you mean by environmental scanning? What are the different stages in environmental scanning? Marketing Environmental scanning refers to possession and tilization of information about occasions, patterns, trends, and 6 consanguinitys within an organizations internal and external environment. It helps the mana gers to decide the future path of the organization. Scanning must identify the threats and opportunities existing in the environment and an organization must take advantage of the opportunities and minimize the threats. 14. Discuss the marketing strategies a. stinking Marketing strategy Firms engage in offensive marketing strategies to improve their own competitive position by taking market conduct away from ivals. Offensive strategies include direct and indirect attacks or pitiful into late markets to avoid incumbent competitors. Offensive marketing strategies take many another(prenominal) forms from flanking attacks or bypassing the argument to all-out frontal attacks intended to defeat the challenger with all available means at the attackers temperament Offensive Strategies are Frontal attack, flanking attack, Guerrilla attack, encirclement strategy, predatory strategy, look undefended markets, underdog strategy, Judo strategy and pivot and the hammer strategy b. Defensiv e outlineBecause of on-going rivalry, established firms need to engage in defensive strategies to fend off the various competitors. The primary purpose of defensive strategy is to make a possible attack un clearive and discourage potential challengers from attacking other firm. Defensive strategies work better when they take place in advance the challenger makes an investment in the industry, or if they enter the industry originally pass away barriers are raised, making it difficult for the challenger to leave the industry. There are two types of defensive marketing strategies. Pre-entry strategies are actions taken by incumbents before they are ttacked by challengers. Defensive marketing strategies may also take the form of post-entry actions that are initiated after the challenger has entered the market Defensive Strategies are classified as Pre-entry strategies are Signaling, Fortify and defend, Cover all bases, straight improvement and Capacity expansion. Post-entry stra tegies are Defend position before fresher sours established Introduce fighting brands and Engage in cross-parry 7 c. nook marketing strategy A street corner is a more narrowly defined customer group seeking a distinctive mix of benefits.Marketers usually identify niches by dividing a segment into sub segments. The customers in the niche have a distinct set of needs they will pay a premium to the firm that best satisfies their needs the niche is not likely to attract other competitors the nicher receives certain economies through strength and the niche has size, profit, and growth potential. 15. Evaluate the role, scope and importance of Marketing teaching System. In tramp to produce superior value and satisfaction for customers, companies need information at or so e rattling turn.Good products and marketing programs begin with a thorough understanding of consumer needs and wants. Companies also need abundant information on competitors, resellers, and other factors and forc es in the market place. Increasingly marketers are view information not just as an input for making better decisions, but also as an important strategic asset and a marketing tool i. e As a competitive advantage Market information includes all facts, moving-picture shows, opinions and other information utilize in marketing decisions, which affects the marketing of products.Therefore, the success of a producer or a merchant depends upon the knowledge of the demands of his product or products in the market. 16. What are the various stages through which the marketing enquiry is organized? Briefly describe them. Marketing seek is the systematic method of gathering, recording, analyzing and reporting of data and finding a solution relevant to special(prenominal) marketing situation facing the company. Marketing research bidding is a set of six steps which defines the tasks to be accomplished in conducting a marketing research study. conundrum exposition takes into account the purpose of the study, the relevant background information, what information is needed, and how it will be employ in decision making. . 2 Development of an Approach to the Problem includes formulating an orient or theoretical framework, analytical models, research questions, hypotheses, and identifying characteristics or factors that can influence the research design. . 3 Research Design Formulation is a framework or blueprint for conducting the marketing research project. It details the procedures necessary for obtaining the ask information. Field Work or Data Collection involves a field force or module that operates in the field to collect data. 8 5 Data proviso and Analysis This is a process of concerned with the conversion of row data into information. 6 Report Preparation and Presentation The findings should be presented in a comprehensible format so that they can be readily used in the decision making process. 17. Distinguish clearly between marketing research and Mark et research? Market research deals specializedally with the gathering of information about a markets size and trends.Market research is the research that may be done into a single market, focusing on the size and trends in that market. Marketing research covers a wider range of activities. While it may involve market research, marketing research is a more general systematic process that can be applied to a variety of marketing enigmas. 18. What do you mean by Market Segmentation? Explain its objective and importance. Market part is classification of spectacular market in to miniatureer endeavourable target markets based on their similar wants, purchasing power, and geographical location, purchase attitudes, or buying habits.The main objectives of segmentation of market is to prepare different programs and strategies for all segments so that maximum satisfaction may be provided to all the consumers of these segments, and the object of earning maximum profit may be achieved. 1 9. Clearly distinguish Market Segmentation and return differentiation growth differentiation A marketing process that looks to make a product more attractive by contrasting its alone(predicate) qualities with other competing products. Successful product differentiation creates a competitive advantage for the seller.Physical products may vary in their Form, Features, Performance, Conformance, Durability, Reliability, Repair ability, demeanor & Design. Whereas, Market segmentation is classification of freehanded market in to smaller target markets based on their similar wants, purchasing power, and geographical location, buying attitudes, or buying habits. 20. Explain different market coverage strategies which can be adopted by marketers. 9 21. There is close relationship between market segmentation and marketing mix Discuss. 22. Define crossroad and explain its essential features and importance.Product is something that can be offered to the market to satisfy the customers need . A product can be tangible and impalpable which would be good, service, an ca outlay, information, experience, place and person that satisfy the needs of the consumer. Physical products may vary in their Form, Features, Performance, Conformance, Durability, Reliability, Repair ability, Style & Design. 23. Briefly discuss the various types of consumer goods and their characteristics. Consumer goods are goods that are bought from retail stores for person-to-person, family, or domicilehold use. They are sort out into three subcategories on the basis of consumer buying habitsI. Convenience goods II. Shopping goods and III. persuasiveness goods. I. Convenience Goods are items that buyers want to buy with the least come up of effort, and most are nondurable goods of low value that are frequently purchased in small quantities. II. Shopping Goods are purchased only after the buyer compares the products of more than one store or looks at more than one assortment of goods before makin g a deliberate buying decision. These goods are usually of higher(prenominal) value than public lavatory goods, bought infrequently, and are durable. Price, lineament, style, and color are typical factors in the buying decision.III. Specialty Goods are items that are unique or singularat least in the mind of the buyer. Buyers know exactly what they want and are willing to exert considerable effort to obtain it. These goods are usually, but not necessarily, of high value, and they may or may not be durable goods 24. What is Product life speech rhythm? Discuss different stages of the concept with implications. The stages through which individual products develop over time, begins with the introduction of the product, and then it moves on to the growth stage, the maturity stage, and ends with a decline in the products sales.This process products life cycle -period usually consists of five major steps or phases 1) Product Development begins when the company finds and develops the id ea of a un pillowcased product. In this stage, sales are zero and investments costs are high. 10 2) Introduction is a period of slow sales growth and no profits as the product is confrontd in the market. 3) Growth is a period of rapid market acceptance and increasing profits. 4) Maturity is a period of slowdown in sales and profits decline. 5) Decline is a period when sales fall off and profits drop. 25.Explain the marketing strategies which may be adopted during the lifecycle of a product. Marketing strategies during the life-cycle of a product Marketing strategies during product life cycle Introduction stage Rapid graze strategy, slow glide strategy, Rapid cleverness strategy and slow penetration strategy, Distribution arrangements are realized, Aggressive set Growth stage Product improvement, unsanded models are developed, Enters in the raw market segment, Enlarges distribution channels and so forth , barriers are licenses and copyrights, expense discount Maturity stage Convert nonusers, Enter new market segments, Win Competitors customers etc, Marketing mix modifications in Prices, Distribution, Advertising, sales promotion, in-person selling, service, new brands are introduced, Promotion and publicizing relocates from the scope of acquiring new customers, to the scope of product differentiation in terms of quality and reliability. 26. Explain the factors affecting the life-cycle of a product. Marketing and non-marketing factors contribute to new product blows. Researchers through several studies on new product success and failure described seven critical marketing factorswhich sometimes overlap. . Insignificant point of difference A distinctive point of difference is essential for a new product to defeat competitive ones-through having superior characteristics that deliver unique benefits to the user. 2. Incomplete market and product definition before product development starts A new product needs a precise contention before product developme nt begins. Identifies a well-defined target market, specific customers needs, wants, and preferences and what the product will be and do. Without this precision, huge amount funds will be lost in research and development. 3. overly little market attractiveness 1 Market attractiveness refers to the precedent situation every new product manager looks for a large target market with high growth and a real buyer need. 4. Poor execution of marketing mix 5. Poor product quality in critical factors One or two quality factors can kill the product, even though the general quality is high. 6. Bad/ distressing timing of the product The product is introduced too soon, too late, or at a time when consumer tastes are shifting dramatically. 7. Non economical access to buyers some(prenominal) small manufacturers simply do not have the money to benefit effective exposure for their products. 7. Explain the meaning and benefits of product diversification. What are the advantages and disadvantages of product diversification? Product diversification, Advantage, disadvantage Product diversification is a form _or_ system of government of management philosophy of operating a company so that its business and profits came from a number of sources, usually from diverse products that differ in market or production characteristics. Precisely, when a manufacturer or a distributor manufactures or distributes more than one product, it is known as Product diversification.Advantages of product diversification Product diversification strategy brings in its wake some distinct advantages. They are 1. Profit maximization Product diversification increases the products and product types in the product port-folio of the concern. On account of increases in the number of products, it is possible to reduce the area of fringe market and the district of indifference in the marrow market of a company and twosome larger number of consumer self-images. This product market integration brings in more p rofit caused by improved situation. 2.Growth with stability New products in the companys basket will enable it to exploit new markets and come across the requirements of established markets in much better way than before. Increased market share is further sustained as the product-line is thoroughly overhauled to meet the changing requirements of the consumers. It 12 guarantees growth with stability because, it estimates seasonal and cyclical fluctuation in demand and supply. 3. Long-term measure Product diversification is not a shortterm measure which has far reaching and more durable influence on a companys future.It requires adequate planning and due care and caution as it is likely to be misused. Disadvantage/ Weaknesses The most salutary weaknesses or disadvantages are as follows 1. Huge Investment Any object for product diversification involves considerable investment of corporate resources in developing the necessary manufacturing and marketing activities. It is not well-o ff to procure finances required for diversification purposes. 2. Risk-ridden The risks winding in diversification strategy are in no way small.Though the diversification plan is undertaken to move up from the low level profits to high level, the dream remains dream because, consumer preferences change, competitors introduce close substitutes for the diversified products, and the government policies change. All these are sure to mar the profit potentialities of the diversification plan. 3. Trap of full-line competition The ambuscade of full-line competition is also a major drawback of the policy of diversification. Product diversification program involves stretchdown of new products to the existing line to strengthen the competitive ability of the firm.With this effort to make the product portfolio full and complete, the firm is entering a trap which has no point of comeback. The competitors will not keep quite. They do add, hence, the firm adds again. It becomes a new war which is unmanageable and uneconomical at a point of time. The effect is sure collapse. 28. What is a new product? What are the stages involved in new product development? New Product Development Strategy The development of original products, product improvements, modifications through the firms own R efforts. belief Generation New product development starts with idea eneration. Idea generation is the systematic search for new 13 product ideas. According to one management consultant, companies will run through 3000 ideas before they hit a winner. Internal Idea Sources Using internal idea sources, the company can find new ideas through formal research and development by picking the brains of its executives, scientists, engineers, staff and salespeople. External Idea Sources New product ideas also come from reflexion and listening to customers. The company can analyze customer questions and complaints to find new products that better solve consumer problems.Idea Screening Idea generation creates large number of ideas. Idea screening reduces that number by spotting good ideas and displace poor ones. Concept Development and Testing A product idea is an idea for a possible product that the company can offer. A product concept is a detailed version of the idea declared in meaningful consumer terms. A product image is the way consumers recognize a product. Concept Testing Concept testing calls for testing new-product concepts with groups of target customers to find out if the concepts have strong consumer appeal. 29.What marketing strategies are sedulous while introducing a new product into the market? Marketing Strategy Development The next step is marketing strategy development. The marketing strategy statement consists of three parts 1. The first part describes the target market, product positioning and sales, shares and profits goals. 2. The second part outlines the products plan wrong, distribution and marketing budget for the first year. 3. The third part des cribes long haul sales, profit goals and marketing mix strategy. 30. What is the Consumer adoption process? pull back the stages in the process of consumer adoption process.Consumer adoption process Deals with the question how do potential consumers learn about new products, try them, adapt to them or recant them? Adoption is an individuals decision to become a prescribed user of a product. Stages in the consumer adoption process Adopters of new products have been observed to move through five stages 1. Awareness stage-the consumer become aware of the innovation but lacks some information about it 2. sake stage-the consumer is percolated to seek information about the innovation. 14 3. rating stage-the consumer considers whether to try the innovation. 4.Trial stage-the consumer tries the innovation to improve his or her estimate of its value. 5. Adoption stage-the consumer decides to make full and regular use of the innovation. 31. What is pricing? What are the major objectives of pricing? In the narrowest sense, price is the amount of money charged for a product or service. More broadly, price is the sum of all the values qthat customers construct up in order to gain the benefit of having or using a product or service. A business firm can pursue any of the following major objectives through pricing survival, maximum current profit, maximum market share or maximum market kimming. 32. Discuss briefly the procedure followed for determine the price of a product. Procedures followed in pricing Price denotes the value of product or service expressed in money. Price is a puissant marketing instrument. Price is one of the marketing-mix variables. Firms should be systematic in condition the prices. Certain logical steps are involved in the reserve approach to pricing. The ultimate goal of price fixing process is to set a price that is compatible with the rest of the marketing mix. A systematic approach to pricing involves seven steps.These seven logical steps are 1. Identifying the potential customer 2. Estimating the demand for the product 3. Anticipating competition 4. Determining pass judgment share of market 5. Selecting suitable price strategy 6. Examination of firms marketing policies a. Product policy b. Channels of distribution c. promotional policies 7. Selection of a specific price 33. Distinguish between skimming price policy and penetration price. Marketing Skimming Companies unveiling a new technology favour setting high prices to skim market revenue layer by layer.Market skimming makes sense under the following conditions (1) A sufficient number of buyers have a high current demand (2) the unit costs of producing a small volume are not so high that they cancel the advantage of charging what the traffic will bear (3) the high 15 initial price does not attract more competitors to the market (4) the high price communicates the image of a superior product. Whereas Market-penetration pricing is setting a low initial price in or der to penetrate the market quickly and deeply- to attract a large number of buyers and win a large market share.The high sales volume results in falling costs, allowing the company to cut its price further. 34. exposit the chief pricing methods which are usually used to determine the price of a product. Methods of Product Pricing Companies select pricing methods that enable to reach a specific price for its product. The company usually considers customers demand, cost and the competitors cost, price and offer in selecting the pricing methods. The company might use the following pricesetting methods Mark up Pricing is setting price by adding a standard mark-up or profit margin to the products cost.Targeting Pricing the firm determines the price that would yield its target rate of return on investment (ROI). perceive Value Pricing is setting price for their product based on the customers perceived value, not the sellers cost as the give away to price. They use non pricing variable in the marketing mix to class up perceived value in the buyers mind. Value Pricing the company charges a fairly low price for a high quality offering. Value pricing says that the price should represent a high-value offer to consumers. dismission Rate Pricing In going-rate pricing, the firm bases its price largely on competitors prices.Smaller firms follow the leader, changing their prices when the market leaders prices change rather than when their own demand or costs change. Auction-Type Pricing Auction-type pricing is growing more prevalent one major purpose of auctions is to dispose of excess inventories or used goods. In the auction type of pricing the auctioneer announces either marginal or the maximum price of a product and slowly increases or decreases until the bidder accepts the price. 35. What do you mean by price discrimination? What are its objectives?Price discrimination occurs when a company sells a product or service at two or more prices that do not smoothen a proportional difference in costs. The basic objective of price discrimination is that, by setting different prices for the same product in different markets / segments, a business can increase its total sales revenues, increases market shares and use as defending marketing strategy. 16 36. What is breakeven point pricing? Break-even pricing is a strategy that yields zero profit on a transaction. At break-even pricing the sales revenue equals expenses and is calculated by totaling the fixed and variable costs.Break-even pricing may be used as an aggressive marketing tool for market expansion or penetration. dread break-even price points gives management the tools to work toward generating profits or whether or not to even enter a particular market. 37. What do you understand by promotion? Explain the objectives and importance of promotion. Meaning of promotion Promotion is the form of corporate communication that uses various methods to reach a targeted audience with a certain mess age in order to achieve specific organizational objectives. Objectives of promotion The possible objectives for marketing promotions may include the following.I. Build sensory faculty New products and new companies are often unknown to market, which means initial promotional efforts must focus on establishing an identity. In this situation the marketer must focus promotion to Effectively reach customers and tell the market who are they are and what they have to offer II. Create interest abject customer from awareness of a product to making a purchase can present a significant challenge. The focus on creating messages that convenience customers that a need exist has been the hall mark of marketing for a long time with promotional appeals argeted at basic human characteristics such as emotion, fear, and humor. III. Provide information Some promotion is designed to tending customers in the search stage of the purchasing process. IV. Stimulate demand The right promotion can drive cu stomers to make a purchase. In the typesetters case of products that a customer has not previously purchased or has not purchased in long time, the promotional efforts may be directed at acquire customers to try to the product. V. Reinforce the brand Once a purchase is made, the marketer can use promotion to help build a strong relationship that lead to the purchaser becoming loyal customer.For instance many retail stores now ask e- mail service address of customers in order to follow up and maintain their relationship. 17 38. Explain the different Kinds of promotion. There are two main types of promotion I. Informative promotion attempts to give lots of details about the product. This is often used by the Government, for example to inform people of new laws. Informative publicize enables firms to draw consumers attention to a brand and educate them about distinctive features and benefits. This is particularly important when a product is new or technologically complex.II. Persua sive promotion attempts to persuade the consumer that he or she needs the product. Its role is to convince consumers that one product is better than another in meeting their needs and delivering specific benefits they seek. It can also be used to motivate a higher-volume or more immediate purchase than a buyer would ordinarily make. 39. What is Promotion-mix? Explain the factors which affect the promotion-mix of a company. Promotional mix elements Promotion mix is a combination of the tools that are used to accomplish an organization communication objective. The romotion mix element include denote, sales promotion, personal selling, publicity, direct marketing and net income marketing. Each promotional tool has its own unique characteristics and costs. a) Advertising is any remunerative form of non-personal presentation and promotion of ideas, goods or service through an identified sponsor. It also includes any informative or persuasive message carried by a non-personal medium to achieve various marketing objectives. b) personalised selling is the form of person-to-person communication in which a seller attempts to assist/persuade forecastive buyers to purchase the company product.Here there is a face-to-face communication with one /more prospective purchasers for the purpose of making presentations, answering questions and procuring orders. c) gross sales promotion is consists of a diverse assembly of bonus tools, mostly short term, designed to stimulate trial, or speedy or greater purchase, of particular products or services by consumers or the trade. d) publicity/public relation is no-personal communication regarding on organizations product, service or idea that is not right off for usually comes in the form of news story, editorial and an announcement about an organization and its product.Public relation has broader objective than publicity, as its purpose is to 18 establish and maintain a appointed image of the company among its various publi cs. e) Direct marketing -is use of mail telephone e-mail and other nonpersonal contact tools to communicate directly with or solicit a direct response from specific customer and prospects. Many forms Telephone marketing, direct mail, online marketing, etc. Four distinctive characteristics Nonpublic, Immediate, Customized, synergetic Well-suited to highly-targeted marketing efforts. Factors in Setting the Marketing Communications MixCompanies must consider several factors in developing their promotion mix Type of product market Push-versus-pull strategy A push strategy involves the manufacturer using sales force and trade promotion to induce intermediaries to carry, promote, and sell the product to end users. A pull strategy involves the manufacturer using advertising and consumer promotion to induce consumers to ask intermediaries for the product, thus inducing the intermediaries to order it. This is especially appropriate when there is high brand loyalty and high affair in the c ategoryBuyer-readiness stage Promotional tools vary in cost posture at different stages of buyer readiness (awareness, knowledge, liking convincing, preference, and purchase). Product-life cycle stage Promotional tools also vary in cost effectiveness at different stages of the product life cycle. Company market regulate Market leaders derive more benefit from advertising than from Sales promotion. Conversely, smaller competitors gain more by using sales promotion in their marketing communications mix. 40. Define sales promotion. Describe the various methods of sales romotion. Sales promotion is consists of a diverse collection of incentive tools, mostly short term, designed to stimulate trial, or quicker or greater purchase, of particular products or services by consumers or the trade. Sales promotion includes those promotional activities other than personal selling, advertising and public relations that are intended to induce buyers purchase or to stimulate dealer effectiveness i n a time. Tools and Techniques of sales promotion 19 Two categories of sales promotion the trade oriented and consumer oriented sales promotion.Consumer sales promotion techniques are Price deal, Loyal Reward Program, Cents-off deal, Price-pack deal, Coupons, difference leader, Rebates, Trade sales promotion techniques are Trade allowances, Dealer loader, Trade, Point-of-purchase displays, fostering programs and Push money. 41. What is personal selling? Enumerate relative merits and limitations of personal selling. in the flesh(predicate) selling is the form of person-to-person communication in which a seller attempts to assist/persuade prospective buyers to purchase the company product. Here there is a face-to-face communication with one /more prospective purchasers for the urpose of making presentations, answering questions and procuring orders. Merits and demerits of personal selling Merits of ad hominem Selling 1. Flexibility and Adaptability Sales persons should adapt to e ach selling situation. Salesperson is to be sensitive to what is occurrent and flexible enough to make those adaptations. 2. Minimum Wastage The efforts put in buy the salesman are highly focused on a single customer or a small group of customers. As a result of oral, face-toface presentation, the message is likely to reach the customer or customers without distortion and diffusion. 3. It is a FeedbackThe salesman is, in effect, a marketing researcher. Being in direct contact with customers, he has the specific advantage of collecting and transmitting the relevant marketing information affecting his company, products and services and himself. 4. It creates impinge and Lasting Impressions The process of personal selling is so direct and penetrating those long dashing business relations can be developed between the selling house and the class of customers. 5. It generates Gainful Employment Opportunities Developing countries have the situation where people run after jobs rather than jobs running after people.Hence, there is good scope for self-employment and ready jobs in this line of selling. 6. Salesmanship makes the Economic System more Stable Demerits of in the flesh(predicate) Selling 1. It is Expensive 20 Personal selling, as a method of promotion, is quite expensive. Getting the good salesman is one thing and retaining them for longer period is another. 2. Problem of Getting Gifted Salesman it is really very difficult to get a suitable salesman from the companys point of view. 3. High plump for in Consumer Loyalty customer loyalty depends on the presence of a successful salesman.That is, firms fortunes are tied to the loyalty of the customers which, in turn, depends on the very presence of a particular salesman or salesmen. 4. More Administrative Problems Personal selling involves more administrative problems than impersonal selling. firm has to meet the challenges in the areas of manpower planning, organizing, directing, coordinating, motivating and c ontrolling. 5. It is not an easy Profession Salesmanship is not an easy job. It is needs long hours of hard work, to be away from family facing all the odds both mental and physical. 6.As a Profession has Little revere Salesmanship as a profession commands very little respect. Many go in for salesmanship as it has easy entry points. 7. Mark of Fraud In salesmanship, there are good chances of fraud and deception. Malpractices that are followed by salesman not all are sufficient to damage the very image of salesmanship the great art and profession. 42. What are the essentials of effective selling? Essentials of effective selling Personal selling is an art and a profession. It is a creative work. Success in personal selling depends upon the salesman and the framework in which he words.Personal selling demands a command over certain requisitions making selling a electrifying success. There are seven requisites or essentials of effective selling. They are 1. cognition of self 2. compan ionship of product 3. Knowledge of company 4. Knowledge of competition 5. Knowledge of selling process 6. Knowledge of customers 7. Knowledge of advertising Knowledge of self One should know himself and his own abilities and personality before embarking upon to do a particular job. Knowledge of Product Product knowledge is almost inevitable, as the very existence of salesman is dependent on the products. So a 21 alesman should know all about his product Materials from which it is made, how it is used and how it is maintained, Product features, Customer benefits and Selling points of the product in relation to its rivals and son. Knowledge of the company or enterprise Most products, especially costly and complicated products, are not judged on their own merits. They are judged by the name of the company that manufacturers them. Knowledge of aspiration A salesman should constantly study the products offered by his competitors and determine their strengths and weaknesses in comparison to his own product.Awareness of competition enables a salesman if necessary, to compare his product with that of rivals on those points in which the buyer seems most interested. Knowledge of customers A salesman must have adequate knowledge about both the customers wants and desires, and the products offered by the company to satisfy customers. Knowledge of selling process the salesman should have in-depth knowledge of the selling process and each stage of it. Selling process is made up of at least six stages to convert prospect into a customer.The stages are prospecting, pre-approach, approach, presentation and demonstration, overcoming objections and closing the deal. A salesman should be well-versed in the principles and techniques of salesmanship. Knowledge of advertising Publicity work undertaken by the concern is a good source of information and a force that creates a present for his effective performance. Advertising copies helps him in planning his sales talk. Though adver tising is an indirect way of selling, it supports and reinforces the efforts of salesman. Hence, a salesman is to study and analyze the advertisements. 3. Discuss the methods of personal selling? 44. What do you mean by Advertising Discuss its objectives and functions. Advertising is any paid form of non-personal presentation and promotion of ideas, goods or service through an identified sponsor. It also include any informative or persuasive message carried by a 22 non-personal medium and paid for by a sponsor whose product is in some way identified in the message. Depending upon the marketing situation, companies use advertising to achieve various marketing objectives 1. To do the entire selling job (as in mail-order marketing) 2.To introduce a new product (by building brand awareness among potential buyers) 3. To force middlemen to handle the product (pull strategy) 4. To build brand preference (by making it more difficult for middlemen to sell substitutes) 5. To remind users to buy the product (retentive strategy) 6. To publicize some change in marketing strategy (e. g. , a price change, a new model, or an improvement in the product) 7. To provide rationalizations for buying (i. e. , socially acceptable excuses) 8. To combat or neutralize competitors advertising efforts. 9. To improve the morale of dealers and/or salesmen. 0. To acquaint buyers and prospective buyers with new uses of the product. 45. Selection of advertising media should be preceded by an analysis of all factors involved in the total marketing situation. What factors should you consider in such an analysis and why? 46. State the differences between advertising and Publicity? 47. What is Physical distribution? Explain its role in modern marketing. 48. What is distribution channel? What factors influence the distance as well as width of the channel? 49. Middlemen are parasites. They should be eliminated Do you agree? Explain.Of course, why because in a Marketing range of mountains where di stribution comes, if i put it in a rough count, out of the 100% which we pay as MRP , about 40 % is the manufacturing cost and the rest 60 % is going as middlemen expenditure. We, the end customers are paying 60% above the unit cost for a product. There are knowing Distribution channels which will avoid these middlemen. Good Companies like Amway does that and in this case they can ensure that the original products reach the end customers. 50. What is tele-marketing? telemarketing is one of the ways of direct marketing which involves the use of the telephone for the marketing purpose.The salesperson involved uses the telephone to directly convince the customer over 23 the buying of some kind of product or service with the complete information and detailing session. The telemarketing is basically categorized into two different types which are the Business-to-consumer telemarketing and the business to-business telemarketing. The most importantly used subcategories of telemarketing to day are the Outbound and the inbound telemarketing. Outbound is the proactive marketing in which the customers either who exist lready or the prospective ones are all contacted directly for the purpose of the marketing The Inbound telemarketing includes the reaction and reception of the orders and also information coming in so as to explain the customer about the product and give detailed information on which they are interested. 51. What is international marketing ? Why firms want to go international or global? International marketing is the performance of business activities designed to plan, price, promote and direct the flow of a companys goods and services to consumers or users in more than one nation for a profit.The only difference between the definitions of domestic marketing and international marketing is that in the latter case marketing activities take place in more than one country. The main reason for companies to go to international marketing is to exploit a better bus iness opportunity in terms of increased sales and profits. Foreign markets may offer an opportunity for growth. The major reasons to go to international markets are Market Saturation When domestic markets are becoming saturated for faster than new markets are being found.Trade dearth To balance the trade deficit i. e. to balance import & export. Foreign Competition Competition forced some companies to shift their products to hostile markets. Emergence of new Markets The world is changing fast, resulting in the emergence of new markets. Eg. the growing Asiatic Markets. The Possibility of achieving economies of scale In industrialized where economies of scale are feasible, a large market is essential, so it if the home market is not large enough, entering conflicting markets may be an attractive alternative.Safety net during business downturns/to extend products life cycle/ Usually a recession starts in one country. Thus, firms that do business internationally can shift to contra sted markets during recession. 24 To get cheap Labor costs Since labor cost in developing countries is much lower than in the developed countries, it is economically attractive for the companies to expand foreign operations. Tax Incentives Some nations offer revenue enhancement incentives to attract foreign business to their countries. To develop and /or test new products outside This practice avoids exposure to competitors and to some extent, keeps new evelopment information cloak-and-dagger until the product is ready for full introduction. E. g. Ford did much of its world car development in Germany. To find less competitive Markets Some markets are less competitive than the home market of the company. 52. Explain the main tasks involved in international marketing? The International marketing Task is more complicated than that of the domestic marketing because the international marketing must deal with at least two levels of refractory uncertainty instead of one.A foreign countr y where a company operates adds its own unique set of uncontrollable elements. With the growth of the number of foreign markets a company operates in, the variety of foreign environmental uncontrollable become greater. A solution to a problem in a country might not be applicable to a problem in other country. To tackle these problems the following tasks should be considered. the market and 1. Distinguish between selling and marketing? Selling is the process of making the companys sales volume increase 25 2.What is product positioning Positioning is the act of designing the companys offering and image to occupy a distinctive place in the mind of the target market? The goal is to locate the brand in the minds of consumers to maximize the potential benefit to the firm. 3. Direct and indirect channel distribution Direct distribution channel is marketing channel that has no intermediary levels the company sells its product directly to consumers. Whereas indirect distribution channel is a channel containing one or more intermediary levels is called indirect marketing channel. 26