Marketing management module 1 important questions of marketing mba 1st sem by babasab patil...

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Important Questions Of Marketing Babasabpatilfreepptmba.com Page 1 Important Questions of Marketing 3 Marks Questions 1. What is marketing? 2. What is Market? 3. What is exchange? 4. Write any external environment variables. 5. What is external environment? 6. Define marketing segmentation. 7. Explain buying situation briefly. 8. Direct marketing 9. What is complex buying behavior 10. Marketing Mix. Give an example 11. Product Mix 12. Promotion Mix. Example 13. Difference between need, want & demand 14. Selling concept 15. Product Positioning 16. Channel conflict. 17. Demography 18. Mass marketing 19. Primary & secondary data 20. Levels of product 21 Difference between penetration pricing and skimming pricing 22. difference between product & service 23. Marketing environment. 24. Zero level Channel 25. Societal Marketing concept

Transcript of Marketing management module 1 important questions of marketing mba 1st sem by babasab patil...

Page 1: Marketing management module 1  important questions of marketing   mba 1st sem by babasab patil (karrisatte)

Important Questions Of Marketing

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Important Questions of Marketing

3 Marks Questions

1. What is marketing?

2. What is Market?

3. What is exchange?

4. Write any external environment variables.

5. What is external environment?

6. Define marketing segmentation.

7. Explain buying situation briefly.

8. Direct marketing

9. What is complex buying behavior

10. Marketing Mix. Give an example

11. Product Mix

12. Promotion Mix. Example

13. Difference between need, want & demand

14. Selling concept

15. Product Positioning

16. Channel conflict.

17. Demography

18. Mass marketing

19. Primary & secondary data

20. Levels of product

21 Difference between penetration pricing and skimming pricing

22. difference between product & service

23. Marketing environment.

24. Zero level Channel

25. Societal Marketing concept

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26. Derived demand

27. Niche marketing

29. Marketing Myopia

28. Customer Equity

29. What is price?

30. Product line, Product depth, product width.

31. What is advertising?

32. Value Positioning

33. Customer Relationship Management

5 Marks

1. BCG Matrix/ Growth Share Matrix

2. Business Markets

3. Marketable entities

4. Evolution of marketing

5. Product attributes

6. Buyer Adoption process

7. Types of Markets

8. Types of consumer buying behavior

9. Steps in marketing research

10. Push & pull promotion strategy

11. Marketing segmentation

12. Positioning strategies

13. Targeting & positioning

14. Advantage & limitations of internet marketing

15. Write about the VMS

16. Difference between marketing and selling

17. New product pricing

18. Explain Product/ Market Expansion Grid

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7 Marks

1. Explain scope, role and functions of marketing?

2. In what way is the knowledge of the Indian consumer environment a prerequisites for marketers in the design and

development of suitable marketing plan? Discuss.

3. How do the 4 P‘s vary across the product life cycle? Discuss with the help of a suitable example.

4. Explain the marketing process with neat diagram

5. Bring out the marketing strategies in all the stages of PLC.

6. Discuss the factor affecting consumer buying decision process.

7. Mention the marketing basis for segmenting consumer markets.

8. List and define the steps in the business buying decisions.

9. Elaborate the different techniques of forecasting future demand.

10. What products and brands do you feel successfully ―Speak to You‖ and effectively target your age group? Why?

Which one‘s does not? What could they do better? Explain with example.

11. Explain the various marketing management philosophies/ orientation/ concepts. Which orientation is most suitable

in the present environment? Give reason.

12. Discuss the different positioning strategies a marketer can use to position his brands.

13. Explain the steps involved in designing a distribution channel for a new brand of sports shoes.

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14. What is micro environment? Describe various elements or factors of microenvironment.

15. Define the ‗Product‖ and explain the types of consumer products.

16. What is marketed? Give suitable example

17. Explain the evolution of the marketing with suitable example

18. If the product in the maturity stage, then which are the strategies you would like to implement?

19. What is buyer adoption? Explain the Buyer Adoption process.

20. Bring out the levels of consumer decision making. (Note: Write the levels as buyers decision process)

21. Elaborate the classification of Business Markets.

22. Explain PLC with neat diagram

23. What are the stages in new product development?

24. Explain the techniques for forecasting future demand

25. Bring out the requirements for effective segmentation

26. Define packaging and elaborate the types of packages.

27. Explain Consumer and Industrial goods. What are the differences in the marketing of both type of goods

28. Explain the Different types of pricing strategies?

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29. Describe the various internal and external forces that influence the pricing strategy of a firm.

30. Describe in brief controllable and non-controllable factors influencing Marketing Decisions

31. "Promotional Programs are economic wastes and usually unethical"- Do you agree with this statement? Give

reasons

32. L. G. Electronics from South Korea wants to launch its digital CTV as a colour television in Indian market. As a

marketing consultant advise the company on segmentation and positioning strategy to be adopted for identifying the

right groups of customers in India.

33. Explain Marketing strategy and Marketing Mix in detail?

Small Case lets

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As a marketing manager of a company, you are given the task of launching a new herbal tooth-paste in the Indian

market. Prepare a detailed plan of the activities that you will undertake to achieve your target successfully. Also

explain the various marketing functions involved in your marketing strategy for launching the herbal tooth-paste.

Some Extra Questions and Answers

1) What is the value proposition in marketing? The full positioning of brand, the full mix of benefits upon which it

is positioned.

2) A competitive advantage is a superior capability of a company in comparison to its direct competitors. When a

company tries to develop an edge over its competitors based on a superior product, better distribution, better

services, or lower selling price based on lower costs, it is trying to establish a(n):

3) Mission : The mission statement describes the overall purpose of the organization and what it intends to

achieve in terms of customers, products and resources.

4) What questions is the company likely to ask when writing a mission statement? Ans: What business are we in?

What customers should we serve? How should we develop the firm's capabilities and focus its efforts?

5)A code of ethics : is a set of guiding principles that all members of a profession accept. Basic principles:

responsibility, accountability, advocacy, and confidentiality

6) What is business to business marketing? B2B - The marketing of goods and services that business customers

need to produce other goods and services, for resale or to support their operations.

7) Focus group Informal interviews with 8 to 12 respondents who discuss a topic in an open-ended discussion under

the guidance of a moderator are known as a Focus group

8) What are the various forms of competition in the macroenvironment?

Monopoly (one company is only supplier)

Oligopoly (small number of sellers control market)

Monopolistic competition (many sellers, slight difference between products)

Perfect competition (many small firms selling same product)

9) Mail survey : Mil survey is type of research is frequently used as a relatively inexpensive means of collecting data

10 What is a feature? A feature is something about the product that is unusual or that you can describe It explains what

the product "has"

11) What is a benefit? A benefit is the advantage it has for the buyer

12) What is a distinctive competency : Properties of products that set them apart from competitor's products by

providing unique benefits.

13 )What is a product portfolio? : A company will balance its products so that some products are mature, some in

growth stage, while others are waiting to be introduced

14) What is ethnocentrism? The tendency to prefer products or people of one's own culture over those from other

countries

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15) What are some advantages of telephone interviews? Fast, High flexibility in questioning, Fairly Low cost,

Limited interviewer bias

16) What are the pros/cons of mail questionnaires? Advantages : Respondents feel anonymous , Low cost, Good

for ongoing research. Disadvantages: Slow return speed, Low response rates typical, Inflexible questionnaire, Length

of survey is limited

17) Pros/Cons of face to face interviews? Advantages : Flexibility of questioning , Long questionnaires possible,

Can help explain questions, Can use visuals

Disadvantages: High cost, Interviewer bias possible, Time requirements are high

18) What is primary research? Research conducted for a specific purpose - to answer a particular question

19) What are the advantages of primary research? Advantages: Answers a specific research question, Data are

current, Source of data is known, Secrecy can be maintained

20) What are the disadvantages of primary research? Disadvantages: Expensive, Quality declines if interviews are

lengthy, Reluctance to participate in lengthy interviews

21) What is the BCG matrix? Boston Consulting Group Growth-Market Share Matrix

22) What are the three levels of business planning?

Strategic planning by top-level corporate management

Functional planning by top functional-level management such as the chief marketing officer

Operational planning by supervisory managers

23) What is a target market? A target market - an organization's chosen segment

24) What are some global strategies a company can adopt?

Exporting (shipping overseas)

Contractual agreements

Licensing (giving rights to produce/market in country for fee)

Franchising (adopt an entire system)

Strategic alliances (working together)

Joint venture (two or more companies create new company to sell in that country)

25) What is utility in marketing? Utility is the usefulness or benefit customers receive from the product

26) Goals/Objectives should have four attributes? Need to be specific, measurable, time based and attainable

27) Nature of Marketing:Nature of Marketing evolves from its multidisciplinary coverage of activities which is as

follow:

1. Dynamic Process: Marketing is an ongoing activity which does not stop at any step. After finding customer‘s

needs and wants it needs to develop such products or services which can satisfy these needs and after this there is need

to advertising, promotion, distribution, etc the process goes on.

2. Customer Oriented: Marketing is customer oriented. Marketing is the process of finding needs and wants of

customers and satisfying those needs profitably.

3. All Encompassing: Marketing is all encompassing, it is not a single process it includes production planning,

research, advertising, financial management, budgeting, selling, etc.

4. Integrating: It integrates all the departments of an enterprise be it production, finance, IT, HR, etc.

5. Creative: Marketing is creative in nature, it looks out for new ideas, views and activities and solves problems or

encash opportunities in a creative way.

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28) Scope of Marketing:

Marketing has a very wide scope it covers all the activities from conception of ideas to realization of profits. Some of

them as discussed as below:

1. Product Planning: It includes the activities of product research, marketing research, market segmentation,

product development, determination of the attributes, quantity and quality of the products.

2. Branding: Branding of products is adopted by many reputed enterprises to make their products popular among

their customer and for many other benefits. Marketing manager has to take decision regarding the branding policy,

procedures and implementation programs.

3. Packaging: Packaging is to provide a container or wrapper to the product for safety, attraction and ease of use

and transportation of the product.

4. Channels of Distribution: Decision regarding selection of most appropriate channel of distribution like

wholesaling, distribution and retailing is taken by the marketing manager and sales manager.

5. Sales Management: Selling is a part of marketing. Marketing is concerned about all the selling activities like

customer identification, finding customer needs, persuading customer to buy products, customer service, etc.

6. Advertising: Advertisement decisions like scope and time of advertisement, advertisement message, selection of

media, etc comes into marketing.

7. Finance: Marketing is also concerned about the finance, as for every marketing activity be it packaging,

advertising, sales force budget is fixed and all the activities have to be completed with in the limit of that budget.

8. After Sales services: Marketing covers after sales services given to customers, maintaining good relationships

with customers, attending their queries and solving their problems.

29) Importance of Marketing to the Marketers, Consumers and Society

Marketing is the source of many important new ideas in management thought and practice — such as flexible

manufacturing systems, flat organizational structures, and an increased emphasis on service —all of which are

designed to make businesses more responsive to customer needs and preferences.

To the Marketers:

1. Financial Success: Nothing succeeds like success and financial success often depends on marketing ability.

Finance, operations, accounting, and other business functions will not really matter if there is not sufficient demand

for products and services. There must be a top line for there to be a bottom line. Marketing is a profit centre, other

functions are cost centres.

2. Marketing is often the Route to the Top: Most companies have now created a position of Chief Marketing

Officer, similar to Chief Finance Officer or Chief Strategy Officer. Most of the top positions in the company are being

fulfilled by people from marketing. There is no management discussion in the annual reports without describing their

latest marketing achievements, and the strategies and tactics adopted.

3. Helps Boost Product Sales: Marketing is a core business discipline. Apart from spreading awareness about the

products, marketing actually helps boost sales and the revenue growth. Marketing creates desire among the general

public to buy the product through effective strategic marketing plans including integrated marketing communication.

The more people hear and see the products, more they would be interested to buy.

4. Builds Company Reputation: Marketers aim at creating brand equity through brand 'name, images, logo, or

caption ('Iodex maliye kam par chaliye') that the customers listen and watch in the advertisements. McDonalds is

immediately recognized by its arch design. With an established name it is easier for marketers to expand and to grow.

Companies also create reputation through innovation of products, which is possible because of financial resources

generated from sales.

5. Marketing is the biggest component of a product offering: Normally 40-60% of the price charged from a

customer comprises of marketing-related costs, like advertising, market research, development, etc. The greatest

challenge before the marketer is how to bring it down without sacrificing marketing objectives.

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6. To Cope up with the Changing Marketing Environment: Globalization, the internet, and information

transparency have led to an increasingly mobile workforce, ever more fussy customers, and rapidly changing

technologies and business models.

Thus, companies are less able to predict - let alone control - the short-term shape of their own markets. Consequently,

more and more organizations are choosing to adopt a marketing-led philosophy to enable them to win market share

and capture and retain the hearts and minds of current and prospective customers.

Marketing is becoming more important as organizations around the world strive to develop products and services that

appeal to their customers and aim to differentiate their offering in the increasingly-crowded global marketplace.

Marketing is no longer the sole prerogative of a single 'function'.

To the Consumers:

1. They can buy goods globally: Marketers through computer and information technology are able to satisfy more

customers across the globe than ever before. Marketers do recognize the role of websites and the blogs, online

communities, SMS, e-mail etc which facilitate marketing exchanges. Today if someone has to buy a fridge, he can

visit the sites for new and old fridges, compare them and can find the best value.

2. Promotes Product Awareness: Getting the product recognized by the market is the primary objective of

marketing, by which customers take advantage of them. Customers never thought of mobile phones, personal

computers or laptops. Awareness of them was spread by marketers only. Thus, marketing helps to improve the quality

of life.

3. Creating Utilities: Marketing creates form utility (from timber into desired furniture), place utility (moving

product closure to customer), time utility (product being made available when it is needed), information utility

(informing of availability of a particular product at a particular place and at a particular price), and possession utility

(through transfer of ownership).

To the Society:

1. Protection against Evil Effects of Depression: It is through marketing that the spending is continued and the

depression is kept at bay.

2. Employment: Marketing offers many exciting, interesting, and challenging careers, like personal selling,

advertising, transportation, packaging, marketing research, product development and design, cash and carry stores,

retailing, lobbying, event management, etc. Apart from such commercial activities, many non-governmental

organizations engaged in cause marketing, advocacy marketing, social marketing etc. also provide great opportunities.

3. Availability of Various Products: Society would have no choice in the absence of marketing. Today, there are

hundreds of new products and tens of variants of every product are available only because of marketing.

30) Evolution of Marketing s

Phillip Kotler categorized the five major marketing eras that have evolved throughout time.

The Production Era: One of the oldest concept eras, it holds that consumers will favor those products that are widely

available and low in cost. Managers of production-oriented organizations concentrate on achieving high production

efficiency and wide distribution.

The Product Era: This era brought about marketing beliefs that consumers will favor those products that offer the

most quality, performance or innovative features. Marketing managers focus on making superior products and

improving them over time.

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Although both production and product are important in the overall mix of healthy marketing, there can be a problem

with the remnants of both the production and product era, as they can lead to a symptom called marketing myopia.

Production- or product-oriented companies tend to design their product with little or no customer input, as with some

car manufacturers and many insurance and financial products providers. No wonder they are such a hard sell. There is

a danger with developing a love affair with your production efficiency or product and not realizing that the

marketplace may be less turned on. Marketing managers become victims of the ―better mouse trap‖ fallacy, believing

that a better mouse trap will lead people to their door.

The Selling/Sales Era : During this era, the primary marketing concept belief held that consumers if left alone would

not buy enough of the organization‘s products; therefore, the organization must undertake an aggressive selling and

promotion effort. The selling concept assumes that the consumer must be coaxed into buying. It also assumes that the

organization has effective selling and promotional tools to stimulate more buying. Today, this concept is still practiced

most aggressively with unsought goods, such as insurance, funeral plots and even fundraising activity by non-profit

groups. These industries have perfected various sales techniques to locate prospects and hard sell them on their

product benefits. Most firms practice the selling concept when their aim (knowingly or unknowingly) is to sell what

they make rather than make what the market wants.

The Marketing Era : Evolving from and challenging the first three concept eras of marketing, this era holds that the

key to achieving organizational goals consists of being more effective than your competitors in integrating and

coordinating marketing activities toward determining and satisfying the needs and wants of your target markets.

Marketing guru and Professor Theodore Levitt states, ―Selling focuses on the needs of the seller, marketing on the

needs of the buyer. Selling is preoccupied with the seller‘s need to convert his product into cash; marketing with the

idea of satisfying the needs of the customer by means of the product and the whole cluster of things associated with

creating, delivering and finally consumering it.‖

The marketing concept is the foundation of healthy marketing and rests on four pillars: target market, customer needs,

integrated marketing and profitability. The selling era concept takes an inside-out perspective. It starts with the

factory, focuses on the company‘s existing products or services and calls for heavy hitting selling and promotion to

produce profitable sales. Unlike the selling concept, the healthier modern era marketing concept takes an outside-in

perspective. Starting with a well-defined market, it focuses on customer needs, integrates all the activities that will

affect customers and produces profits by satisfying customers

The Societal Marketing Era : The newest to evolve, it holds that the organization‘s task is to determine the needs,

wants and interests of target markets and to deliver the desired satisfaction more effectively and efficiently than

competitors in a way that preserves or enhances the consumers‘ and the society‘s well being.

Organizations run the societal marketing concept for several purposes: to enhance their corporate image, thwart

negative publicity, pacify consumer groups, launch a new product or brand, broaden their customer base and/or

generate incremental sales. This concept calls for marketers to really balance three considerations: company profits,

consumer want and satisfaction, and public interest.

31) What are the distinguishing features of an Indian consumer ? (Short Answer).

Ans.: India being very vast geographically, consumers here are naturally scattered over a vast territory, as the country

is marked by great diversity in climate, religion, language, literacy level, customs lifestyles & economic status. A

Broad sketch of Indian consumer can be drawn on the basis of :-

(a) Demographic which includes size of population literacy & education.

(b) Geographic spread – consist of northern, southern, western & eastern belts.

(c) Diversity based on religion, language diversity in dress & food habits etc.

Classification of Indian consumers based on economic status :-

(a) Affluent Group (b) Middle Class (c) Relatively Poorer Section (d) BPL Section

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(a) Affluent Group : This group is small, but it has a good deal of marketing significance. This is because it is useful

segment for luxury products. The super premium brands also depend on it. Therefore, this group is sometimes referred

to as the ―Image segment‖ This segment is looking out for something new.

(b) Middle Class : It is the middle class that constitutes the largest segment of consumers for manufactured goods in

the industry. The middle class has emerged as a result of socio-economic developments that took place over the years

& is now emerging as the consumption community of the country as they are better educated & are better exposed to

global lifestyle. They often spend more than what they earn at any given pointin- time in order to cope up with their

new social image.

(c) Relatively Proper Section : They also account for a good sized demand base for certain products. Though their

purchasing power is very low, their size is very large. Over 75% of the purchase in categories like cooking oil, tea,

detergent cake, bath soap, tooth powder, come from people with income levels below Rs. 25000 per annum.

(d) BPL Section : This is also large is size , it does not form part of the demand base. This category is projected to

shrink substantially. In fact the middle classification can be defined :-

(i) Middle Class Male (ii) Middle Class Woman (iii) Middle Class Teenager

Middle Class Male : He is a blend of traditional & non traditional values, they prefer ready-mades today. They are

status conscious, they have strong family ties & above all he is the sole decision maker in purchase.

Middle Class Women : She is cautious, but not averse to change, quality conscious, as well cost conscious, seeking

leisure & is aware of new development, have good sense of grooming.

Middle Class Teenager : They are more than 150 million & more modern & adventurous than their elders. They care

less for religion & tradition. They value material comforts & physical well being more, they are quick in adopting

fashion.

32. How do the 4 Ps vary across the PLC? Discuss with the help of a suitable example

Product

The important thing to remember when offering menu items to customers is that they have a choice. They have a huge

number of ways of spending their money and places to spend it. Therefore, McDonald's places considerable emphasis

on developing a menu which customers want. Market research establishes exactly what this is. However, customers'

requirements change over time. What is fashionable and attractive today may be discarded tomorrow. Marketing

continuously monitors customers' preferences.

In order to meet these changes, McDonald's has introduced new products and phased out old ones, and will continue to

do so. Care is taken not to adversely affect the sales of one choice by introducing a new choice, which will cannibalise

sales from the existing one (trade off). McDonald's knows that items on its menu will vary in popularity. Their ability

to generate profits will vary at different points in their life cycle. Products go through a life cycle, which is illustrated

below:

The type of marketing undertaken and the amount invested will be

different, depending on the stage a product has reached. For example, the

launch of a new product will typically involve television and other

advertising support. At any time a company will have a portfolio of

products each in a different stage of its lifecycle. Some of McDonald's

options are growing in popularity while arguably the Big Mac is at the

'maturity' stage.

Price

The customer's perception of value is an important determinant of the

price charged. Customers draw their own mental picture of what a

product is worth. A product is more than a physical item, it also has psychological connotations for the customer. The

danger of using low price as a marketing tool is that the customer may feel that quality is being compromised. It is

important when deciding on price to be fully aware of the brand and its integrity. A further consequence of price

reduction is that competitors match prices resulting in no extra demand. This means the profit margin has been

reduced without increasing sales.

Promotions

The promotions aspect of the marketing mix covers all types of marketing communications. The methods include

advertising, sometimes known as 'above the line' activity. Advertising is conducted on TV, radio, cinema, online,

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poster sites and in the press (newspapers, magazines). What distinguishes advertising from other marketing

communications is that media owners are paid before the advertiser can take space in the medium. Other promotional

methods include sales promotions, point of sale display, merchandising, direct mail, telemarketing, exhibitions,

seminars, loyalty schemes, door drops, demonstrations, etc.

The skill in marketing communications is to develop a campaign which uses several of these methods in a way that

provides the most effective results. For example, TV advertising makes people aware of a food item and press

advertising provides more detail. This may be supported by in store promotions to get people to try the product and a

collectable promotional device to encourage them to keep buying the item. It is

imperative that the messages communicated support each other and do not confuse

customers. A thorough understanding of what the brand represents is the key to a

consistent message.

The purpose of most marketing communications is to move the target audience to some

type of action. This may be to: buy the product, visit a restaurant, recommend the choice

to a friend or increase purchase of the menu item. Key objectives of advertising are to

make people aware of an item, feel positive about it and remember it. The more

McDonald's knows about the people it is serving the more it is able to communicate

messages which appeal to them. Messages should gain customers' attention and keep

their interest. The next stage is to get them to want what is offered. Showing the benefits

which they will obtain by taking action, is usually sufficient. The right messages must be targeted at the right

audience, using the right media. For example, to reach a single professional woman with income above a certain level,

it may be better to take an advertisement in Cosmopolitan than Woman's Own. To advertise to mothers with children,

it may be more effective to take advertising space in cinemas during Disney films. The right media depends on who

the viewers, readers or listeners are and how closely they resemble the target audience.

Place

Place in the marketing mix, is not just about the physical location or distribution points for products. It encompasses

the management of a range of processes involved in bringing products to the end consumer.

33. Internet Marketing: Advantages and Disadvantages

The term marketing generally refers to the attraction and promotion of products and services to potential customers.

Traditionally, marketing was all about physical and oral advertising of products and services. But modern day

marketing is more to do with electronic and online advertising. Internet marketing is considered to be broad in scope

because it not only refers to marketing on the Internet, but also includes marketing via e-mail and wireless media.

Internet marketing brings together the creative and technical aspects of the internet, including design, development,

advertising, and sales. Internet marketing also refers to the placement of advertising media along many different user

oriented approaches such as search engine marketing (SEM), search engine optimization (SEO), banner placement

and directory submissions.

Advantages of Internet marketing

• Extensive reach Internet marketing is less expensive when examining the ratio of cost to the reach of the target audience. Businesses

can reach a wide audience for a small fraction of traditional advertising budgets. The nature of the medium allows

consumers to research and to purchase products and services conveniently.

• Higher customer appeal The businesses have the advantage of appealing to consumers in a medium that can bring results quickly. Internet

marketing gives them a range of choices to market their business to the selected audience. Thus the strategy and

overall effectiveness of marketing campaigns depend on business goals and the amount the business wish to invest in

internet based marketing.

• Easy to measure the results Internet marketing also has the added advantage of measuring statistics easily and inexpensively. There are tools and

techniques that can be used to test and trace almost all aspects of internet marketing. Apart from the basic pay per

click advertising, the monthly reports generated through the analytics technique will display the related web traffic

from a variety of angles.

Limitations of internet marketing

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• Not having a physical presence The main disadvantage in internet marketing is that buyers don‘t get a chance to physically feel the product as in a

store. This applies especially to businesses dealing with e commerce. For most products that physical sight and feel is

important. Some customers still prefer the old way of shopping.

• Concern on internet security Internet security is important both to companies and consumers that participate in online business. Many consumers

are hesitant to purchase items over the internet because they do not believe that their personal information will remain

private. Some companies offer the option for individuals to have their information removed from the database, also

known as opting out. However, many customers are unaware of this as well as when and with whom their personal

information is shared.

• Mismatch in the products ordered and delievered Another major concern that consumers have with e-commerce merchants is whether they will receive exactly what

they purchased. This can be heavily experienced in the fast moving goods that are being sold on e commerce stores.

34. Types of business markets Business to Business

When you sell to other businesses, you are participating in the business-to-business market. The B2B marketplace

requires a greater emphasis on customer education and proof of benefit than on desirability, status or other emotional

sales pitches. Business-to-business selling often consists of garnering larger orders from fewer customers, with more

personal interaction, rather than advertising and promotions, necessary. Within the B2B market are subsets of the

marketplace focusing on the sale of industrial products, consulting services and financial services.

Industrial

The industrial market consists largely of companies transacting business in hard goods such as machinery, materials,

chemicals, vehicles and office furniture and supplies. The buyers are often manufacturers; the sellers are known as

suppliers. Suppliers must be experts in their product or service and the market overall. They often use a consultative

selling approach to partner with customers, helping them solve problems or meet specific business goals.

Professional Services

Another subset of B2B is professional services, which consists of providing consulting or delivery of business needs

such as marketing, information technology, human resources, benefits planning, management consulting and payroll.

Some commercial services, especially those involving information technology systems, include the sale of hard goods

such as computers and software. Many solo entrepreneurs offer professional services as consultants, while firms might

group a variety of services -- such as advertising, public relations, promotions and media buying -- under one roof.

Financial Services

One area of the commercial services market with its own moniker is the group of businesses selling financial services.

This can include banking, insurance, commercial credit and lending, tax planning, investments and asset management

and consulting publicly traded companies. Financial services professionals are often highly trained, certified, licensed

or bonded. Financial services providers often must follow specific government rules and regulations.

Government

Working with governments provides a variety of opportunities and challenges. A contract with a municipal, state or

federal agency means having a solid client that will honor its obligations and pay you on time. Getting these contracts

usually requires filling out lengthy bids, showing proof of your corporate status and agreeing to follow other business

practices government agencies require. In some locales, bidders for government contracts must meet requirements that

include at least partial ownership of the company by a minority. Even a landscaping or janitorial contract for a local

city hall or school can take months to secure.

35.Types of consumer products 1) Convenience product , 2) shopping products, 3) specialty product , 4) unsought product

36. Marketing triangle

There must be a market for your product or service that is targetted

and located in your consumer research.

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There must be an understandable message to deliver to get your potential customers relating to the solutions

you offer. You have to tap into those emotions to influence a buying decision

There must be a proper advertising medium you will identify through multiple channel testing.

37. Use of Packaging & labeling Packaging and package labeling have several objectives

1) Physical protection – The objects enclosed in the package may require protection from, among other things,

mechanical shock, vibration, electrostatic discharge, compression, temperature, etc.

2) Barrier protection – A barrier from oxygen, water vapor, dust, etc., is often required. Permeation is a critical

factor in design. Some packages contain desiccants or oxygen absorbers to help extend shelf life. Modified

atmospheres or controlled atmospheres are also maintained in some food packages. Keeping the contents clean,

fresh, sterile and safe for the intended shelf life is a primary function. A barrier is also implemented in cases where

segregation of two materials, prior to end use is required, as in case of special paints, glues, medical fluids etc. At

consumer end, the packaging barrier is broken or measured amounts of material removed for mixing and subsequent

end use.

3) Containment or agglomeration – Small objects are typically grouped together in one package for reasons of

efficiency. For example, a single box of 1000 pencils requires less physical handling than 1000 single pencils.

Liquids, powders, and granular materials need containment.

4) Information transmission – Packages and labels communicate how to use, transport, recycle, or dispose of the

package or product. With pharmaceuticals, food, medical, and chemical products, some types of information are

required by governments. Some packages and labels also are used for track and trace purposes. Most items include

their serial and lot numbers on the packaging, and in the case of food products, they often contain an expiry/best-

before date, often in a shorthand form.

5) Marketing – The packaging and labels can be used by marketers to encourage potential buyers to purchase the

product. Package graphic design and physical design have been important and constantly evolving phenomenon for

several decades. Marketing communications and graphic design are applied to the surface of the package and (in

many cases) the point of sale display.

A single-serving shampoo packet

6) Security – Packaging can play an important role in reducing the security risks of shipment. Packages can be made

with improved tamper resistance to deter tampering and also can have tamper-evident[24]

features to help indicate

tampering.

7) Anti-counterfeiting Packaging - Packages can be engineered to help reduce the risks of package pilferage or the

theft and resale of products: Some package constructions are more resistant to pilferage and some have pilfer

indicating seals. Counterfeit consumer goods, unauthorized sales (diversion), material substitution and tampering

can all be prevented with these anti-counterfeiting technologies. Packages may include authentication seals and use

security printing to help indicate that the package and contents are not counterfeit. Packages also can include anti-

theft devices, such as dye-packs, RFID tags, or electronic article surveillance tags that can be activated or detected

by devices at exit points and require specialized tools to deactivate. Using packaging in this way is a means of loss

prevention.

8) Convenience – Packages can have features that add convenience in distribution, handling, stacking, display, sale,

opening, reclosing, use, dispensing, reuse, recycling, and ease of disposal

9) Portion control – Single serving or single dosage packaging has a precise amount of contents to control usage.

Bulk commodities (such as salt) can be divided into packages that are a more suitable size for individual households.

It is also aids the control of inventory: selling sealed one-liter-bottles of milk, rather than having people bring their

own bottles to fill themselves.

38. Types of Packaging

As most businessmen would always say packaging can be the difference in successfully shipping a product to the

market in one piece or in pieces. Listed below are different types of packaging:

1. Plastic – one of the most common packaging materials used for food products. Resin is most common to plastic

packaging as it can be made flexible or rigid depending on the need of packaging. This is commonly used for sodas,

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milk carton and egg trays. Rigid plastics are usually used for manufacturing food cartons (for to go) and other plastic

trays.

2. Metal or Aluminum – this type of packaging is normally used for canned goods, sodas and alcoholic drinks like

beer. Although aluminum is good for packaging, challenge is it is quite expensive to make one that is why you would

hear people trying to get all the used cans that they can find so that they can have it for recycling.

3. Cardboard – this is used when the product is already wrapped in something that is already well protected and

secured. This material is also highly recyclable. This material is also used in manufacturing corrugated boxes. Some

products use bubble wrap for protective purposes before putting it in a well-sealed box. Taping machines are

commonly used for sealing these corrugated boxes just to make sure that product is delivered in tact.

4. Glass – is frequently used for preserved foods such as jams and honey. This type of packaging is easy to use and

can be recycled over and over again. Glass is also used for consumable goods such as sodas, beer and wine. Although

this packaging is fragile, it is still widely used across almost all industries.

5. Foam – you would notice this type of packaging on gadgets, TVs, furniture, glass and anything with sharp

edges. Foams are custom made to make sure that it fits the product accurately.

Packaging is sometimes neglected by companies that are not aware of the benefits and importance of ensuring

that the product is received in one piece and not in pieces. But packaging is not just limited to the type

used. Having a high quality and dependable packaging system like a taping machine will ensure that product

will reach the end of the line in tact.

Marketing Research Steps

Stage 1: Formulating the Marketing Research Problem : Formulating a

problem is the first step in the research process. In many ways, research starts with a problem that

management is facing. This problem needs to be understood, the cause diagnosed, and solutions developed.

Stage 2: Method of Inquiry : The scientific method is the standard pattern for investigation.

It provides an opportunity for you to use existing knowledge as a starting point and proceed impartially.

The terminology is similar to the stages in the research process. However, there are subtle differences in the

way the steps are performed. For example, the scientific method is objective while the research process can

be subjective.

Stage 3: Research Method: There are two primary methodologies that can be used to answer

any research question: experimental research and non-experimental research. Experimental research gives

you the advantage of controlling extraneous variables and manipulating one or more variables that

influences the process being implemented. Non-experimental research allows observation but not

intervention.

Stage 4: Research Design: The research design is a plan or framework for conducting the

study and collecting data. It is defined as the specific methods and procedures you use to acquire the

information you need.

Stage 5: Data Collection Techniques : Your research design will develop as you select

techniques to use. There are many ways to collect data. Two important methods to consider are interviews

and observation. Interviews require you to ask questions and receive responses.

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Another way to collect data is by observation. Observing a person‘s or company‘s past or present behavior

can predict future purchasing decisions. Data collection techniques for past behavior can include analyzing

company records and reviewing studies published by external sources.

In order to analyze information from interview or observation techniques, you must record your results.

Because the recorded results are vital, measurement and development are closely linked to which data

collection techniques you decide on.

Stage 6: Sample Design : Your marketing research project will rarely examine an entire

population. It‘s more practical to use a sample—a smaller but accurate representation of the greater

population. Once you‘ve established who the relevant population is (completed in the problem formulation

stage), you have a base for your sample. This will allow you to make inferences about a larger population.

There are two methods of selecting a sample from a population: probability or non-probability sampling.

The probability method relies on a random sampling of everyone within the larger population. Non-

probability is based in part on the judgment of the investigator, and often employs convenience samples, or

by other sampling methods that do not rely on probability.

The final stage of the sample design involves determining the appropriate sample size. This important step

involves cost and accuracy decisions. Larger samples generally reduce sampling error and increase accuracy,

but also increase costs.

Stage 7: Data Collection : Once you‘ve established the first six stages, you can move on to

data collection. Depending on the mode of data collection, this part of the process can require large amounts

of personnel and a significant portion of your budget. Personal (face-to-face) and telephone interviews may

require you to use a data collection agency (field service). Internet surveys require fewer personnel, are

lower cost, and can be completed in days rather than weeks or months. Regardless of the mode of data

collection, the data collection process introduces another essential element to your research project: the

importance of clear and constant communication.

Stage 8: Analysis and Interpretation : In order for data to be useful, you must analyze

it. Analysis techniques vary and their effectiveness depends on the types of information you are collecting,

and the type of measurements you are using. Because they are dependent on the data collection, analysis

techniques should be decided before this step.

Stage 9: The Marketing Research Report

The marketing research process culminates with the research report. This report will include all of your

information, including an accurate description of your research process, the results, conclusions, and

recommended courses of action. The report should provide all the information the decision maker needs to

understand the project.

It should also be written in language that is easy to understand. It‘s important to find a balance between

completeness and conciseness. You don‘t want to leave any information out; however, you can‘t let the

information get so technical that it overwhelms the reading audience. One approach to resolving this conflict

is to prepare two reports: the technical report and the summary report. The technical report discusses the

methods and the underlying assumptions. In this document, you discuss the detailed findings of the research

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project. The summary report, as its name implies, summarizes the research process and presents the

findings and conclusions as simply as possible.

Another way to keep your findings clear is to prepare several different representations of your findings.

PowerPoint presentations, graphs, and face-to-face reports are all common methods for presenting your

information. Along with the written report for reference, these alternative presentations will allow the

decision maker to understand all aspects of the project.

* Types of Markets

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1) Perfect Competition : Perfect competition is a market system characterized by many different buyers

and sellers. In the classic theoretical definition of perfect competition, there are an infinite number of buyers

and sellers. With so many market players, it is impossible for any one participant to alter the prevailing price

in the market. If they attempt to do so, buyers and sellers have infinite alternatives to pursue.

2) Monopoly :A monopoly is the exact opposite form of market system as perfect competition. In a pure

monopoly, there is only one producer of a particular good or service, and generally no reasonable substitute.

In such a market system, the monopolist is able to charge whatever price they wish due to the absence of

competition, but their overall revenue will be limited by the ability or willingness of customers to pay their

price.

3) Oligopoly : An oligopoly is similar in many ways to a monopoly. The primary difference is that rather

than having only one producer of a good or service, there are a handful of producers, or at least a handful of

producers that make up a dominant majority of the production in the market system. While oligopolists do

not have the same pricing power as monopolists, it is possible, without diligent government regulation, that

oligopolists will collude with one another to set prices in the same way a monopolist would.

4) Monopolistic Competition : Monopolistic competition is a type of market system combining elements

of a monopoly and perfect competition. Like a perfectly competitive market system, there are numerous

competitors in the market. The difference is that each competitor is sufficiently differentiated from the

others that some can charge greater prices than a perfectly competitive firm. An example of monopolistic

competition is the market for music. While there are many artists, each artist is different and is not perfectly

substitutible with another artist.

5) Monopsony : Market systems are not only differentiated according to the number of suppliers in the

market. They may also be differentiated according to the number of buyers. Whereas a perfectly competitive

market theoretically has an infinite number of buyers and sellers, a monopsony has only one buyer for a

particular good or service, giving that buyer significant power in determining the price of the products

produced.

Promotion - Push & Pull Strategies

Push : A ―push‖ promotional strategy makes use of a company's sales force and trade promotion activities to create

consumer demand for a product. The producer promotes the product to wholesalers, the wholesalers promote it to

retailers, and the retailers promote it to consumers.

A good example of "push" selling is mobile phones, where the major handset manufacturers such as Nokia promote their

products via retailers such as Carphone Warehouse. Personal selling and trade promotions are often the most effective

promotional tools for companies such as Nokia - for example offering subsidies on the handsets to encourage retailers to sell

higher volumes.

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A "push" strategy tries to sell directly to the consumer, bypassing other distribution channels (e.g. selling insurance or

holidays directly). With this type of strategy, consumer promotions and advertising are the most likely promotional tools.

Pull : A ―pull‖ selling strategy is one that requires high spending on advertising and consumer promotion to build up

consumer demand for a product.

If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the

wholesalers will ask the producers.

Advantages and limitations of Internet Marketing or online marketing Advantages:

1. One of the most important advantages is the fast availability of the information. The clients/users can

easily get information, by navigating the internet, about the products that they wish to purchase, and

besides that, they can check the information at anytime of the day.

2. It allows the companies to save money, an aspect that is really taken into account by the companies

since the online marketing campaigns don‘t require a large amount of investment.

3. The previous mentioned aspect, gives less importance to the differences between large and small

companies in some way, thus increasing the competition and giving that way advantages to the

customers.

4. Presence on the Internet can help the expansion of the company from a local market to national and

international markets at the same time, offering almost infinite expanding possibilities.

5. On the internet everything can be measured, thus it‘s easier for the companies to know almost

instantly if their campaign is working or not, what company or user is interested in their products,

from what cities or countries are they, etc.

Disadvantages:

1. Slow internet connections can cause difficulties. If the companies build too complex or too large

websites, it will take too long for users to check them or download them and they will get bored

eventually..

2. The e-commerce doesn‘t allow the user ―to touch‖ the merchandise before purchasing it. Because of

this, some salesmen are starting to guarantee the possibility of returning the product. In Germany,

where a law that regulates e-commerce and guarantees the customers the total refund of the money

exists since 2000, the electronic commerce is very popular.

3. Other factor is the payment: many users still don‘t trust in the electronic methods of paying and give

up buying online because of this.

4. One of the major disadvantages may be the lack of trust of the users because of the constant virtual

promotions that appear to be frauds. This is an aspect that deteriorates the image and reputation of

quality and honest companies.

5. Other disadvantage is the cash on delivery system, since it doesn‘t guarantee the 100% purchase of

the product. This is also the case of thousands of users that dedicate themselves to daily mock big

companies by ordering on the internet using false identities.

Marketing Entities

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Marketing people are involved in marketing 10 types of entities : goods, services, experiences, events,

persons, places, properties, organizations, information, and ideas.

1. Goods, Physical goods constitute the bulk of most countries production and marketing effort. Each year,

U.S. companies alone market billions of fresh, canned, bagged, and frozen food products and millions of

cars, refrigerators, television sets, machine and various other mainstays of a modern economy. not only do

companies market their goods, but thanks in part to the internet, even individuals can effectively market

goods.

2. Services, As companies advance, a growing proportion of their activities is focused on the production of

services. The U.S. economy today consists of a 70-30 services-to-goods mix-services include the work of

airlines, hotels, car rental firms, barbers and beauticians, maintenance and repair people, as well as

professionals working within or for companies, such as accountants, bankers, lawyers, engineers, doctors,

software programmers, and management consultants. Many market offerings consist of a variable mix of

goods and services. At a fast food restaurant, for example, the customer consumes both a product and a

services.

3. Events, Marketers promote time-based events, such as major trade shows, artistic performance, and

company anniversaries. Global sporting events such as the Olympics or World Cup are promoted

aggresively to both companies and fans. There is a whole profession or meeting planners who work out the

details of an event and make sure it comes off perfectly.

4. Experiences, By orchestrting several services and goods, a firm can create, stage, and market

experiences. Walt Disney World Magic Kingdom represents experiential marketing: Customers visit a fairy

kingdom, a pirate ship, or a haunted house. So does the Hard Rock Cafe, where customers can enjoy a meal

or see a band in a live concert. There is also a market customized experiences, such as spending a week at a

baseball camp playing with some retired baseball greats, paying to conduct the chicago symphony Orchestra

for five minutes, or climbing Mount Everest.

5. Persons, Celebrity marketing is a major business. Today, every major film star has an agent, personal

manager, and tie to a public relation agency. Artists, misician, CEOs, physicians, high-profile lawyers, and

finaciers, and others professional are also getting help from celebrity marketers. Some people have done a

masterful job of marketing themselves -think of Madonna, Oprah Winfrey, the Rolling Stones, Aerosmith,

and Michael Jordan. Management consultant Tom Peters, himself a master at self-branding, has advised

each person to become a ―brand.‖

6. Places. Cities, stats, regions, and whole nations compete actively to attract tourist, factories, company

headquatters, and new residents. Place marketers include economic development specialists, real estate

agents, commercial banks, local business associations, and advertising and public relations agencies. To fuel

their high-tech industries and spawn entrepreneurship, cities such as Indianapolis, charlotte, and raleigh-

durham are wooing 20 to 29 year-old through ads, PR, and other communications. Louisvikke, Kentucky,

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spends $ 1 million annually on e-mails, events, and networking appraches to convince 20-somethings of the

city‘s quality of life and other advantages.

7. Properties. Properties are intangible rights of ownership of either real property (real estate) or financial

property (stocks and bonds). Properties are bought and sold, and this requires marketing. real estate agents

work for property owners or sellers or buy residential or commercial real estate. Investment companies and

banks are involved in marketing security to both institutional and individual investors.

8. Organizations. Organizations actively work to build a strong, favorabke, and unique image in the minds

of their target publics. Companies spend money on corporate identity ads. Phillips, the Dutch electronics

company, puts out ads with the tag line ―Let‘s Make Things Better.‖ In the United Kingdom, Tesco‘s ―Every

Little Bit Helps‖ marketing program has vaulted it to the top of the supermarket chains in that country.

Universities, museums, performing arts organizations, and non-profits all use marketing to boost their public

images and compete for audiences and funds.

9. Information. Information can be produced and marketed as a product. This is essentially what schools

and universities produce and distribute at a price to parents, students, and communities. Encyclopedias and

most nonfiction books. market information. Magazines such as Road and Track and Byte supply information

about the car and computer worlds, respectively. The production, packaging, and distribution of information

is one of our society‘s major industries. Even companies thet sell physical product attempt to add value

through the use of information. For example, the CEO of Siemens Medical Systems, Tom McCausland,

says, ―[our product] is not necessarily an X-ray or an MRI, but information. Our business is really health-

care information technology, and our end product is relly an electronik patient record: information on lab

tests, pathology, and drugs as well as voice dictation.‖

10. Ideas. Every market offering includes a basic idea. Charles Revson of Revlon observed: ―In the factory,

we make cosmetic; in the store we sell hope.‖ Products and services are platforms for delivering some idea

or benefit. Social marketers are busy promoting such ideas as ―Friiends Don‘t Let Friends Drive Drunk‖ and

―A Mind Is a Terrible