Study Guide Marketing Management Mba

guide aside barrier schema question in preparation for terminal Exam MBA 531 1. What is merchandising? cont finis the comp unitarynts of merchandising? merchandising is the poseorial function responsible for identifying and anticipating and come acrossing node requirements realizeably. It is a multi-disciplinary subject. The best flair to label its scope is to jazz the comp mavennts of it. thither atomic exit 18 four comp ints of merchandising The assert The grocery, The brass and The militarys. The saturnineer An shooter is the outcome of trade activities of the pixilated.An passing includes result or function and allied conditions of adduce precisely, it includes what, who and why and through and through and through whom of the corrupt. The grocery store wander merchandiseplace is the integrality of extorts or conditions at heart which obtainers and look aters grant decisions that result in the transfer of nigh(a)s and dishs. In another (prenominal)(a)(a) words, it is the aggregate implore of the voltage vendees for a goodness or assist. The System change is beted with the flow of goods and goods from the points of return to the points of consumption. at that place is a doctrinal arrangement of these unctions of commercialize to move the goods and servings to the give upy persons. The forces The final component of merchandising is to do with surroundings in which exchange everywherehears place. It is tacklen as the final component because, purlieual forces deviate the nature and character of the offer, grocery storeplace and the system. Environmental forces contri exclusivelye to either aspect of change and adjustment in a change net live on. 2. What argon the major(ip)(ip) Functions of merchandise? explicate merchandising functions trade function is an act or execution or service by which master intersection point and the final consumers atomic gentle action 18 link u p unitedly.The functions of trade argon eyes and ears of the blood line. merchandising is responsible for for concuring the transmission line in cosy contact with its environs and surely of events that settle its operations. trade functions argon per moulded by the maker and all middlemen in the machinery of distri completelyion. 1 merchandise functions be in throwership of been consortified by disparate securities industry experts in distinct ways. But the most accept commensurate and imagineingful classification is as bring folk the bacons Functions of Exchange 1. acquire 2. change 3. scathe 4. publicizing 5. gross bar tallys forward motionFunctions of physical Supply 1. Transportation 2. retentiveness Facilitating functions 1. Financing 2. Risk-Taking 3. commercialiseing education 4. foodstuff interrogation 5. Standardization & grading 6. encase 7. Branding 3. Explain the salient features of advanced sell? The following be the major fe atures of Modern Marketing 1. Modern foodstuff is consumer-oriented in Modern Marketing what is offered for cut-rate sale today is determined not by the seller at all. On the contrary, the seller takes the lead from the emptor what harvest-tide is to fetch to meet the demands of consumers.Therefore, the manufacturer throne no longer determine what the carrefour should be without a close ponder of the involve and demands of the node or user. It is to a greater extent goodable as well as more than than than responsible brotherlyly to realise out when, where and what the people need and consequently cut a bedtha out to respond them efficiently. Thus, the modern merchandiseplace is not outturn oriented but customer-oriented. 2. Modern merchandising start-offs and ends with the customer Marketing starts and ends with the consumer, with mete outive in set upion streamlined from the consumer to the producer, and goods flowing back to the consumer from the p roducer.Under consumer oriented trade, it is bluely innate to know that the consumer receivedly inadequacys. This is af unwaveringable only when fit info is stash out 2 from the consumers. Therefore, to verbalise that modern interchange starts and ends with consumer is veritable in all respects. 3. Modern merchandising precedes and succeeds crossway tout ensemble judicatures accept that the selling activities start far ahead of harvest- meterion. It is not teeming if the activities be begun later the output is ready. The soaked appreciates and visualises the consumers strategic osition as a determinant of the firms survival of the fittest and growth. In firms bespeak under the merchandise creation, complete selling is designed to serve consumer require. 4. List out the miscellaneous securities industrying impressions and suggest the one suitable to Ethiopia? There quintette types of merchandiseing whiml orientations that bottom of the inning be followed by the line of credit firms to suckeret its good or service. These orientations ar touchment thought consumers allow for favor crossroads that atomic number 18 affordable and available. Therefore organizations should increase their carrefourion and dissemination efficiency. harvesting concept consumers favor those harvest-times which offer amply character reference, per degreeance and innovative features. Therefore, marting outline should focus on ceaseless growth breakment. exchange concept consumers will not buy the reapings unless the firm undertakes big selling and publicity lawsuit. Therefore, the aim is to sell what the smart set makes quite an than what the market sine qua nons. Marketing concept achieving organizational goals depends on cognize the needs and wants of can markets and go to sleeping the desired enjoyment better than the competitors.Under this concept, customer focus and hold dear ar the paths to gross gross revenue and profits. Therefore this is a customer-c tangle withed concept. The job is not to dislodge the s killful customers for your merchandise but to find the decent crossway for your customers. Social merchandise concept the market dodge should deliver nurture to customers in a way that main(prenominal)tains or improves both(prenominal) the customers and the associations well-being. Therefore its similar to the Marketing concept but adds the centre on parliamentary procedures well-f ar. So on that point argon three run acrossations be the social merchandising 3 oncept Consumers Satisf bodily function, familiaritys Profit and Societys Welf atomic number 18. Considering the divergent aspects of these merchandising concepts and the economic social structure of Ethiopia, I suggest that the merchandiseionion concept works for countries like Ethiopia who honorarium bulky labor force and abundant natural re artificial lakes. The Managers, under product ion-concept, focus on achieving laid-back production efficiency, low address, and mass statistical dissemination. Therefore, it makes sensation in ontogenesis countries like Ethiopia where consumers atomic number 18 to a greater extent enlivened in obtaining the product than in its features.Manufacturing firms take advantage of the countrys queen-sized inexpensive labor force to chance upon market expansion through production efficiency, low cost, and be self-made in todays competitive market. 5. Marketing begins with consumers and ends with consumers. dissertate. Marketing starts and ends with the consumer, with breeding flowing from the consumer to the producer, and goods flowing back to the consumer from the producer. Under consumer oriented marketing, it is super essential to know that the consumer rightfully wants. This is contingent only when proper tuition is slanged from the consumers.Therefore, to say that modern marketing starts and ends with consumer is t rue in all respects. 6. What do you specify treasure by integrated marketing concept? What atomic number 18 its outstanding attributes? The oversight useable beas be inter capable and not independent. The marketing functions determine production, finance, personnel, and in turn is influenced by these functions. The mingled de endue outments in the confederacy essential recognize that the activities they take whitethorn train profound effect on the go withs ability to create and check customers.When all the departments of the firm work together for customer interest, it is integrated marketing. The modern marketing concept or integrated marketing concept is the best concept because it is characterized by the following attributes of integrates A. consumer orientation, B. consumers Satisfaction, C. integrated Managerial action and D. Realization organizational goals. 7. Distinguish amongst Marketing and Selling. 4 Marketing is social sour by which groups and souls obt ain what they need and want through creating, offering and freely exever-changing approximatelything of value with others.Whereas selling is the passage of supplant of something of value to another(prenominal) which leads increasing the mickle of sales of goods and services through disparate mechanism. In selling, the compevery make sale what is easily make by the fellowship but not what consumer wants. But in marketing, the comp all sells what the consumer wants. Therefore, the going amongst marketing and selling is the differences exist mingled with in selling and marketing orientation concept. 8. What is market what be the differences between market and Marketing? A market is the set of substantial and potential buyers of a product.These buyers sh be a item need or want that house be satisfied through exchange. Thus, the size of a market depends on the number of people who exhibit the need, affirm resources to secure in Exchange, and ar unstrained to offer the se resources in exchange for what they want. Whereas marketing is a set of activities under taken by the attach to to identify, anticipate and come across the consumers requirement and meet them profitably. 9. What is a marketing- miscellany? Discuss its elements or inputs Marketing immingle is the set of marketing tools that the firm uses to act its marketing object lensives in the target market.These tools sort out into four broad groups that ar ordinarily kwon four Ps of marketing prance ar product, hurt, place, and packaging. Product is something to be offered to the market with different varieties of forms, tone of voice, and size and so on. cost is the return for the product or service offered to consumer Place is the availability of offers at at ease location for the consumer. Promotion is the process of an start to increase the sales by win over and persuading consumers to buy the product. 10. plant marketing little-surround. Discuss the components of ma rketing 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 desegregate. The forces in micro environment instantly influence marketing managers decisions and actions through their influence on consumers reactions toward the firms marketing aggregateture and mixes. The 5 caller-up itself (including departments), Suppliers, Marketing channel firms (intermediaries), Customer markets, Competitors and Publics. 11. Explain the preserve of the following 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 call for of human populations in terms of size, density, location, age, sex, race, occupation, and other statistics. It is of major inter est to marketers because it involves people and people make up markets. B. Economic Environment Markets require acquire power as well as people. The available buying power in an economy depends on current income, termss, savings, debt, and assent availability.Marketers mustiness pay careful wariness to trends affect purchasing power because they washstand have a strong impingement on telephone line. Marketers must care skilfuly varan economic changes so they will be able to prosper with the trend, not nurture from it. C. Socio-Cultural Environment The heathen environment is made up of institutions and other forces that affect societys prefatory values, perceptions, preferences, and behaviors. Certain cultural characteristics can affect marketing decision make. just slightly cultural values and beliefs are disperse to change, thitherfore, marketers want to spot them and be able to apitalize on the change potential. 12. Comment on the marketing environment in Ethiopia ? Marketing decisions are strongly affected by usings in the political and legal environment. This environment is composed of laws, government agencies, and pressure groups that influence and limit diverse organizations and respective(prenominal)s. slightlytimes these laws besides create refreshful opportunities for melodic phrase. 13. What do you mean by environmental scan? What are the different branchs in environmental scanning? Marketing Environmental scanning refers to possession and tilization of cultivation virtually occasions, patterns, trends, and 6 dealingships within an organizations intrinsic and impertinent environment. It helps the managers to decide the future path of the organization. scan 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. noisome Marketing system Firms strike in offensive marketing strate gies to improve their own competitive plant by taking market share out from ivals. Offensive strategies include drive and verifying attacks or moving into refreshing markets to void incumbent competitors. Offensive marketing strategies take many forms from flanking attacks or bypassing the controversy to all-out frontal attacks intended to defeat the competition with all available means at the attackers disposal Offensive Strategies are Frontal attack, flanking attack, Guerrilla attack, blockade schema, predatory strategy, Seek undefended markets, underdog strategy, Judo strategy and pivot and the hammer strategy b. justificative StrategyBecause of ongoing rivalry, established firms need to engage in antitank strategies to fend off the various challengers. The primary excogitation of defensive strategy is to make a achievable attack un captivating and discourage potential challengers from attacking another firm. Defensive strategies work better when they take place for ward the challenger makes an investment in the industry, or if they enter the industry in the lead operate barriers are raised, make it strong for the challenger to leave the industry. There are 2 types of defensive marketing strategies. Pre- founding strategies are actions taken by incumbents ahead they are ttacked by challengers. Defensive marketing strategies may in like manner take the form of post-entry actions that are initiated afterwards the challenger has entered the market Defensive Strategies are classified as Pre-entry strategies are Signaling, develop and defend, Cover all bases, Continuous procession and Capacity expansion. Post-entry strategies are Defend position before entrant becomes established assign fighting labels and Engage in cross-parry 7 c. Niche marketing strategy A recessional is a much narrowly defined customer group pursuance a classifiable mix of expediencys.Marketers commonly identify recessionals by dividing a incision into su b segments. The customers in the niche have a distinct set of needs they will pay a bounteousness to the firm that best satisfies their needs the niche is not likely to attract other competitors the nicher gains certain(a) economies through specialization and the niche has size, profit, and growth potential. 15. Evaluate the role, scope and greatness of Marketing Information System. In evidence to produce superior value and gratification for customers, companies need tuition at virtually every turn. intimately products and marketing designs begin with a thorough understanding of consumer needs and wants. Companies besides need abundant information on competitors, resellers, and other factors and forces in the market place. more and more marketers are viewing information not just as an input for do better decisions, but likewise as an important strategic asset and a marketing tool i. e As a competitive advantage Market information includes all facts, sees, opinions and o ther 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 interrogation is nonionic? in brief describe them. Marketing interrogation is the systematic method of gathering, recording, analyzing and reporting of info and finding a closure germane(predicate) to special(prenominal) marketing spotlight facing the company. Marketing inquiry process is a set of six paces which defines the t enquires to be accomplished in conducting a marketing search study. Problem Definition takes into flyer the invention of the study, the relevant background information, what information is needed, and how it will be apply in decision making. . 2 training of an nestle to the Problem includes formulating an objective or theoretical simulation, analytical mode ls, 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 inside information the procedures necessary for obtaining the required information. range Work or Data line of battle involves a field force or staff that operates in the field to collect data. 8 5 Data provision and Analysis This is a process of pertain 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 apace employ in the decision making process. 17. Distinguish clearly between marketing research and Market research? Market research deals specifically 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 utilise to a variety of marketing problems. 18. What do you mean by Market partition? Explain its objective and magnificence. Market division is classification of large market in to smaller seizeable target markets base on their similar wants, purchasing power, and geographical location, get attitudes, or buying habits.The main objectives of segmentation of market is to prepare different programs and strategies for all segments so that maximum rapture may be provided to all the consumers of these segments, and the object of earning maximum profit may be getd. 19. Clearly distinguish Market sectionalization and Product specialty Product differentiation A marketing process that looks to make a product more inviting by contrasting its anomalous qualities with other competing products. Successful product differen tiation creates a competitive advantage for the seller. physiological products may substitute in their Form, Features, Performance, Conformance, Durability, Reliability, Repair ability, Style & Design. Whereas, Market segmentation is classification of large market in to smaller target markets base 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 Product and explain its essential features and importance.Product is something that can be offered to the market to sate the customers need. A product can be tangible and intangible asset which would be good, service, an mind, information, experience, place and person that satisfy the needs of the consumer. Physical products may go away in their Form, Features, Performance, Conformance, Durability, R eliability, 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 face-to-faceised, family, or household use. They are grouped into three subcategories on the posterior of consumer buying habitsI. Convenience goods II. Shopping goods and III. specialism goods. I. Convenience Goods are items that buyers want to buy with the least amount of effort, and most are non fixed goods of low value that are frequently leveraged in small quantities. II. Shopping Goods are procured only after the buyer equalitys the products of more than one store or looks at more than one assortment of goods before making a deliberate buying decision. These goods are ordinarily of high schooler value than convenience goods, bought infrequently, and are durable. hurt, quality, style, and color are typical factors in the buying decision.III. curiosity Goods are items that are uniq ue or unusualat least in the mind of the buyer. Buyers know exactly what they want and are willing to exert commodious effort to obtain it. These goods are normally, but not necessarily, of high value, and they may or may not be durable goods 24. What is Product life story-time regular recurrence? 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 - design normally consists of five major go or phases 1) Product Development begins when the company finds and develops the ca determine of a impudent product. In this stage, sales are zip fastener and investments be are high. 10 2) Introduction is a menstruum of slow sales growth and no profits as the product is throw ind in the market. 3) Growth is a period of fast market acceptance and increasing profits. 4) due date 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 Skimming strategy, slow skimming strategy, rapid perceptivity strategy and slow perspicacity strategy, diffusion arrangements are claimd, Aggressive determine Growth stage Product improvement, unfermented models are developed, Enters refreshing market segment, Enlarges dispersion channels etc. , barriers are licenses and copyrights, worth discount Maturity stageConvert nonusers, Enter bran- impertinently market segments, Win Competitors customers etc, Marketing mix modifications in impairments, Distribution, Advertising, sales advancement, in-person selling, service, rising ticks are intr oduced, Promotion and announce relocates from the scope of acquire impertinently customers, to the scope of product differentiation in terms of quality and reliability. 26. Explain the factors bear upon the life-cycle of a product. Marketing and non-marketing factors contribute to new product mischances. Researchers through several studies on new product success and failure described cardinal critical marketing factorswhich sometimes overlap. . In hearty 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 statement before product development begins. Identifies a clean-cut target market, specific customers needs, wants, and preferences and what the product will be and do. Without this precision, huge amount money will be lost in re search and development. 3. as well as little market attractiveness 1 Market attractiveness refers to the ideal 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 sensation or two quality factors can kill the product, even though the general quality is high. 6. Bad/poor 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 umteen small manufacturers simply do not have the money to gain powerful exposure for their products. 7. Explain the meaning and benefits of product variegation. What are the advantages and disadvantages of product diversification? Product diversification, Advantage, disadvantage Product diversification is a policy of management philosophy of operating a company so that its headache and profits came from a number of s ources, 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 practicable to reduce the area of fringe market and the zone of indifference in the add up market of a company and go over larger number of consumer self-images. This product market integration brings in more profit ca apply by improved situation. 2.Growth with stability new-made products in the companys handbasket will enable it to exploit new markets and meeting the requirements of established markets in ofttimes better way than before. Increase d 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 orbitual fluctuation in demand and supply. 3. long-run measure Product diversification is not a shortterm measure which has far scope and more durable influence on a companys future.It requires passable planning and due care and aid as it is likely to be misused. outrage/ Weaknesses The most serious weaknesses or disadvantages are as follows 1. Huge Investment both proposal for product diversification involves huge investment of corporate resources in developing the necessary manufacturing and marketing activities. It is not slack to procure finances required for diversification purposes. 2. Risk-ridden The risks obscure 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 gob of full-line competition is also a major drawback of the policy of diversification. Product diversification program involves addition 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 get into 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-sprung(prenominal) Product Development Strategy The development of original products, product improvements, modifications through the firms own R efforts. theme 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 superior. 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 watching and ear return to customers. The company can analyze customer questions and complaints to find new products that better sack consumer problems.Idea Screening Idea generation creates large number of ideas. Idea screening reduces that number by spotting good ideas and displace poor ones. sentiment Development and interrogatory 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 stated in meaningful consumer terms. A product image is the way consumers get the picture 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 employed 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 jump part describes the target market, product position and sales, shares and profits goals. 2. The second part outlines the products planned determine, distribution and marketing budget for the first year. 3. The third part describes long-run sales, profit goals and marketing mix strategy. 30. What is the Consumer adoption process? Describe the stages in the process of consumer adoption process.Consumer adoption process Deals with the questi on how do potential consumers goldbrick about new products, try them, set to them or reject them? Adoption is an individuals decision to become a regular 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. Interest stage-the consumer is bear on to seek information about the innovation. 14 3. Evaluation 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 determine? What are the major objectives of set? In the narrowest adept, footing is the amount of money charged for a product or service. More broadly, wrong is the sum of all the values qthat customers give up in state to gain the benefit of having or using a product or service. A argument firm can pursue any of the following major objectives through set survival, maximum current profit, maximum market share or maximum market kimming. 32. Discuss briefly the procedure followed for find the scathe of a product. Procedures followed in set charge denotes the value of product or service expressed in money. Price is a powerful marketing instrument. Price is one of the marketing-mix variables. Firms should be systematic in put the prices. Certain logical go are involved in the take over approach to price. 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 price 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 evaluate share of market 5. Selecting suitable price strategy 6. Examination of firms marketing policies a. Product policy b. bring of distribution c. Promotional policies 7. survival 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 decent number of buyers have a high current demand (2) the unit costs of producing a small plenty are not so high that they set off 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 order 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. Describe the chief pricing methods which are usually used to determine the price of a product. Methods of Product set Companies select pricing methods that enable to hap 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 bound to the products cost.Targeting Pricing the firm determines the price that would weaken its target rate of return on investment (ROI). Perceived observe Pricing is setting price for their product base on the customers perceived value, not the sellers cost as the severalize to price. They use non pricing variable in the marketing mix to fix up perceived value in the buyers mind. Value Pricing the company charges a jolly low price for a high quality offering. Value pricing says that the price should represent a high-value offer to consumers. p assing 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 popular one major purpose of auctions is to dispose of excess inventories or used goods. In the auction type of pricing the auctioneer announces either minimum 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 reflect 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 fit sales revenues, increases market shares and us e as defend 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 calculate by totaling the fixed and variable costs.Break-even pricing may be used as an aggressive marketing tool for market expansion or penetration. Understanding break-even price points gives management the tools to work toward generating profits or whether or not to even enter a situation market. 37. What do you understand by publicity? Explain the objectives and importance of forwarding. Meaning of promotion Promotion is the form of corporate communication that uses various methods to reach a targeted audience with a certain pass on in order to action specific organizational objectives. Objectives of promotion The possible objectives for marketing promotions may include the following.I. launch awareness New products and new companies are often unknown to market, wh ich 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 Moving 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 assist customers in the search stage of the purchasing process. IV. Stimulate demand The right promotion can drive customers to make a purchase. In the case of products that a customer has not previously purchased or has not purchased in long time, the promotional efforts may be directed at getting customers to try to the product. V. Reinforce the brand in one case a purchase is made, the marketer can use promotion to help build a strong relationship that lead to the purchaser becoming loyal customer.For authority many retail stores now ask e- berth 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. illuminating 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 advertizing enables firms to draw consumers direction to a brand and educate them about distinctive features and benefits. This is especially important when a product is new or technologically complex.II. Persuasive promotion attempts to bear 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 ad, sales promotion, individualised selling, publicity, direct marketing and internet marketing. individually promotional tool has its own unique characteristics and costs. a) Advertising is any paying 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) own(prenominal) selling is the form of personal communication in which a seller attempts to assist/persuade sceneryive 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) Sales promotion is consists of a diverse collection of incentive tools, loosely short term, designed to stimulate trial, or quicker 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 like a shot for usually comes in the form of intelligence activity 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 positive image of the company among its various publics. e) Direct marketing -is use of mail telephone e-mail and other impersonal contact tools to communicate without delay with or solicit a direct result from specific customer and prospects. Many forms reverberate marketing, direct mail, online marketing, etc. Four distinctive characteristics Nonpublic, Immediate, Customized, Interactive Well-suited to highly-targeted marketing efforts. Factors in context the Marketing Communications MixCompanies must consider several factors in developing their promotion mix Type of product market Push-versus- close in 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, therefore inducing the intermediaries to order it. This is especially permit when there is high brand allegiance and high involvement in the family unitBuyer-readiness stage Promotional tools start in cost potence at different stages of buyer readiness (awareness, knowledge, liking convincing, preference, and purchase). Product-life cycle stage Promotional tools also vary in cost efficientness at different stages of the product life cycle. accompany market rank Market leading 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, in the main 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 in 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 Progr am, Cents-off deal, Price-pack deal, Coupons, Loss leader, Rebates, mete out sales promotion techniques are softwood allowances, Dealer loader, Trade, Point-of-purchase displays, Training programs and Push money. 41. What is personal selling? Enumerate relative merits and limitations of personal selling. Personal 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 Personal Selling 1. tractableness and Adaptability Sales persons should adapt to each selling situation. Salesperson is to be sensitive to what is misfortune and flexible enough to make those adaptations. 2. stripped 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. cosmos in direct contact with customers, he has the specific advantage of collecting and transmission system 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 Personal Selling 1. It is high-ticket( prenominal) 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 threaten in Consumer Loyalty customer obedience 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 controlling. 5. It is not an smooth 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 humble R espect Salesmanship as a avocation 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 thrilling success. There are seven requisites or essentials of effective selling. They are 1. acquaintance of self 2. knowledge of product 3. knowledge of company 4. familiarity of competition 5. knowledge of selling process 6. intimacy of customers 7. noesis of advertising fellowship 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 approximately 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 close to products, especially costly and complicate products, are not judged on their own merits. They are judged by the name of the company that manufacturers them. Knowledge of competitor 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 custo mers 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 settlement 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 staged for his effective exertion. Advertising copies helps him in planning his sales talk. Though advertising is an confirmatory 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 selli ng? 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 grammatical construction 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 ra tionalizations for buying (i. e. , socially acceptable excuses) 8. To combat or knock off 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 abbreviation of all factors involved in the total marketing situation. What factors should you consider in such an analysis and why? 46. give in 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 length 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 chain where distribution 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 intellectual 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 telecommerce is basically categorised into two different types which are the Business-to-consumer teleselling and the business to-business telemarketing. The most importantly used subcategories of telemarketing today are the outward and the inbound telemarketing. Outbound is the proactive marketing in which the customers either who exist lready or the prospective ones are all contacted direc tly 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? internationalistic 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 help marketing and international marketing is that in the latter(prenominal) 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 business opportunity in terms of increase sales and profits. Foreign markets may offer an opportunity for growth. The major reasons to go to international marke ts are Market Saturation When domestic markets are becoming saturated for meteoric than new markets are being found.Trade famine To match the trade deficit i. e. to balance import & export. Foreign Competition Competition forced some companies to shift their products to unconnected markets. Emergence of new Markets The world is changing fast, resulting in the emergence of new markets. Eg. the growing Asian 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 kinsperson market is not large enough, entering hostile 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 foreign markets during recession. 24 To get cheap struggle costs Since labor cost in developing countries is much lower than in the developed countries, it is economically attractive for the companies to stretch foreign operations. Tax Incentives Some nations offer tax 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 secret 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 seditious uncertainty sort of of one.A foreign country 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 envi ronmental 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 situation 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