MARKETING MANAGEMENT

Q1. Short Answer Type Questions:-

1. MARKETING MIX: - It is a marketing tool that combines a number of components in order

to strengthen and solidify a product’s brand and to help sell the product or service. Companies
have to come up with strategies to sell their products, and coming up with a marketing mix is
one of them.

7 P’s of Marketing Mix: -

Marketing Mix 4C’s:-

2. MARKETING PROCESS:- The marketing process is a process of analyzing the
opportunities in the market, selection of the target markets, and development of the Marketing
Mix and management of the marketing efforts. Below are the 4 marketing process steps that
involved in targeting the right audience in the market.

1. Analysis of the opportunities in the market.

2. Selection of the target market.
3. Development of marketing mix.
4. Management of marketing efforts.

Analysis of the Opportunities in the Market

The first component of the Marketing Process is to analyze the market in order to find the
opportunities that should be availed. These opportunities are related to the needs and wants of the
customers that are not properly satisfied by the competitors in the market. A company that is
initiating the marketing process focuses the opportunities that would be beneficial in the long run
success so that its performance would be effectively improved. For this purpose, the company gets
help from the marketing information system (MIS), which plays a significant role in providing
useful information about the market.

Selection of the Target Market

This is the most important step of the marketing process in which the target customers are selected.
For this purpose, the company conducts a careful analysis of the target markets in order to choose
the final customers. As it is obvious that the company do not satisfy the needs and wants of the
whole market therefore it must divide the whole market into different segments and choose the
segment that will best meet its strengths and opportunities. In this regards, there are certain step
you need to follow.

• Market Segmentation:
• Market Targeting
• Market Positioning
Development of Marketing Mix

After setting of a complete marketing strategy of a company, then it is ready to initiate the
planning of its marketing mix.

• Marketing Mix

Marketing Mix is composed of certain variables of markets that are mixed by the company in order
to generate certain desired response in the targeted [Link] fact, the demand of the product is
influenced by the use of certain activities of the marketing mix. The marketing mix is composed
of the following four P’s.

• Product
• Price
• Place
• Promotion

Management of Marketing Efforts

This is actually the action phase of the development marketing program in which a suitable
marketing mix is set for a target market. For the management of marketing efforts four functions
are adopted which are as follow.

• Analysis of the Market

• Marketing Planning
• Marketing Implementation
• Marketing Control
3. MARKET INFORMATION SYSTEM:- A marketing information system (MKIS) is a
management information system (MIS) designed to support marketing decision making.
Jobber (2007) defines it as a "system in which marketing data is formally gathered, stored,
analyzed and distributed to managers in accordance with their informational needs on a
regular basis."

4. PRODUCT POSITIONING:- Positioning is where your product or service fits in the

marketplace. It is a strategic exercise that defines what makes your product unique and why
it is better than alternative solutions. Product positioning is an important element of a
marketing plan. Product positioning is the process marketers use to determine how to best
communicate their products' attributes to their target customers based on customer needs,
competitive pressures, available communication channels and carefully crafted key messages.
Effective product positioning ensures that marketing messages resonate with target consumers
and compel them to take action. For example, market research may have revealed that
the product is popular among mothers.

5. PRODUCT LINE:- “A product line is a group of related products produced by one

manufacturer. For example, products that are intended to be used for similar purposes or to
be sold in similar types of shops.” A company can have more than one product line. The
number of product lines it has reflects its resources, i.e., how powerful it [Link]
 executives believe that product lines give companies a competitive advantage. When a
business has a competitive advantage, it has an edge over its rivals. When a company has
many product lines and groups them together, it creates a product mix.

6. BRANDING OF A PRODUCT:- Product branding is a strategy that defines a unique set of

marketing elements to differentiate a given product. It is an activity that defines the way the
product’s image. Branding policies are established to promote the idea behind the product
through logos, images, designs, colors and many other marketing resources to place the
product in the customer’s mind. Brands transcend company’s environments and the concept
can also be applied to non-profit or government-related institutions where the brand is
associated with a service provided. Branding is the use of a name, term, symbol or design to
give a product a unique identity in the marketplace. Marketers have three major strategic
options: manufacturer branding vs. private labels; individual branding vs. family brands; and
co-branding.
Importance of branding product:-

• Preference
Small businesses that develop strong brands build preference for their products. When consumers
are faced with choices in a store, they typically will favor a brand they have purchased before and
trust.

• Identification
Branding your product can improve the return on your advertising and marketing budget.
Communicating the same messages and using brand elements such as logos, colors, packaging and
graphics consistently helps to reinforce brand qualities.

• Extension
A strong brand can help you launch new products or enter new market sectors. Giving new
products the brand elements and qualities that customers recognize and trust reduces the risk of
failure.

• Growth
Branding can help you increase your revenue and grow your customer base. By promoting your
brand consistently, you can move prospects and customers through different levels of brand
familiarity.
7. PERSONAL SELLING:- Personal selling is where businesses use people (the "sales
force") to sell the product after meeting face-to-face with the customer. The sellers promote
the product through their attitude, appearance and specialist product knowledge. They aim to
inform and encourage the customer to buy, or at least trial the product. Personal selling is a
face-to-face selling technique by which a salesperson uses his or her interpersonal skills to
persuade a customer in buying a particular product. The salesperson tries to highlight various
features of the product to convince the customer that it will only add value. However, getting
a customer to buy a product is not the motive behind personal selling every time. Often
companies try to follow this approach with customers to make them aware of a new product.

IMPORTANCE OF PERSONAL SELLING

• New products can be introduced in the market through personal selling.

• Personal selling is required to sell high-priced consumer durables like television,

refrigerator, etc.

• Personal selling is absolutely necessary to sell products like computers that require
technical knowledge.

• Personal selling is essential to sell anything that requires persuasion of the buyers, e.g.,
Insurance.

8. CUSTOMER RELATIONSHIP MARKETING :- Customer relationship

marketing (CRM) is a technique based on client relationships and customer loyalty.
Using customer data and feedback, companies utilizing this marketing strategy develop
long-term relationships with customers and develop laser-focused brand awareness. It
provides a way to directly evaluate customer value. For example, a business that is genuinely
interested in its customers is rewarded with customer and brand loyalty. Because CRM is
mutually advantageous, market share viability advances at a sound pace. It provides cross-
selling opportunities, where, based on customer approval, a business may pitch proven
marketing or brand strategies to more than one client.
9. What are the characteristics of an effective marketing mix?
The marketing mix indicates the appropriate combination of four P's—product, price, promotion,
and place—for achieving marketing objectives. The components are also known as marketing
mix variables or controllable variables as they can be used according to business requirements.
The marketing mix deals with the way in which a business uses price, product, distribution and
promotion to market and sell its product.
The marketing mix is often referred to as the "Four P's" - since the most important elements of
marketing are concerned with:

• Product - the product (or service) that the customer obtains

• Price - how much the customer pays for the product
• Place – how the product is distributed to the customer
• Promotion - how the customer is found and persuaded to buy the product
It is known as a "mix" because each ingredient affects the other and the mix must overall be
suitable to the target customer. An effective marketing mix is one which:

• Meets customer needs

• Achieves marketing objectives
• Is balanced and consistent
• Creates a competitive advantage for the business.

10. What is the difference between micro environment and macro environment?
Every business organization is a part of the business environment, within which it operates. No
entity can function in isolation because there are many factors that closely or distantly surrounds
the business, which is known as a business environment. It is broadly classified into two categories,
i.e. micro environment, and macro environment. The former affects the working of a particular
business only, to which they relate to, while the latter affects the functioning of all the business
entities, operating in the economy.
While microenvironment has a direct impact on the business activities, the macro environment is
a general business environment, which influences all business groups at large. It is important to
learn the business environment, so as to understand the effect of various forces on business. Take
a read of the given article to know the difference between micro environment and macro
environment.

11. What are the benefits of market segmentation?

Market segmentation offers the following potential benefits to a business:
➢ Better matching of customer needs:- Customer needs differ from each other.
Creating separate products for each segment makes sense
 ➢ Enhanced profits for business: - Customers have different disposable incomes and vary
in how sensitive they are to price. By segmenting markets, businesses can raise average
prices and subsequently enhance profits
➢ Better opportunities for growth: -Market segmentation can build sales. For example,
customers can be encouraged to “trade-up” after being sold an introductory, lower-priced
products.
➢ Retain more customers: - By marketing products that appeal to customers at different
stages of their life (“life-cycle”), a business can retain customers who might otherwise
switch to competing products and brands.
➢ Target marketing communications: - Businesses need to deliver their marketing message
to a relevant customer audience. By segmenting markets, the target customer can be
reached more often and at lower cost.
➢ Gain share of the market segment: - Through careful segmentation and targeting,
businesses can often achieve competitive production and marketing costs and become the
preferred choice of customers and distributors

12. What are the advantages of Skimming Pricing?

Price skimming, also known as skim pricing, is a pricing strategy in which a firm charges a high
initial price and then gradually lowers the price to attract more price-sensitive customers. The
pricing strategy is usually used by a first mover who faces little to no competition. Price skimming
is not a viable long-term pricing strategy as competitors eventually launch rival products and put
pricing pressure on the first company.

Rationale Behind Price Skimming

Price skimming is used to maximize profits when a new product or service is deployed. Therefore,
the pricing strategy is largely effective in a breakthrough product where the firm is the first to enter
the marketplace. In such a strategy, the goal is to generate the maximum profit in the shortest time
possible rather than maximum sales. It allows a firm to quickly recover its sunk costs before
increased competition and pricing pressure.
 Consider the diffusion of innovation, a theory that explains the rate at which a product spreads
throughout a social system. Innovators are those who want to be the first to get a new product or
service. They are risk takers and price insensitive. A price skimming strategy tries to get the highest
possible profit from innovators and early adopters. As the demand from the two segments fills up,
the price of the product is reduced to target price-sensitive customers such as early majorities and
late majorities.

13. Define Publicity?

Publicity is the public visibility or awareness for any product, service or company. It may also
refer to the movement of information from its source to the general public, often but not always
via the media. The subjects of publicity include people of public interest, goods and services,
organizations, and works of art or entertainment. A publicist is someone that carries out publicity,
while public relations (PR) is the strategic management function that helps an organization
communicate, establishing and maintaining communication with the public. This can be done
internally, without the use of popular media. From a marketing perspective, publicity is one
component of promotion and marketing. The other elements of the promotional
mix are advertising, sales promotion, direct marketing and personal selling.

14. What do you mean by Penetrating Strategy?

Penetration strategy is the concept of taking aggressive action to greatly expand one's share
of total sales in a market. The resulting increased sales volume typically allows a business to
produce goods or obtain merchandise at lower cost, thereby allowing it to generate a higher
profit percentage. Also, as the organization acquires more market share, this reduces the sales
of its competitors, possibly forcing some to drop out of the market. There are a number of
ways in which a business can engage in penetration strategy. The most common alternatives
are as follows:

• Price reduction. The most common penetration strategy is simply to reduce prices. If
customers are price sensitive, they will respond by buying more of the company's products
 and services. However, this approach only works if a company's offerings are considered to
at least have the median level of quality of competing offerings. This approach is not a good
one when competitors can easily match or exceed the company's lowered prices, thereby
initiating a price war. Also, lower prices may reduce customer perceptions of the value of a
company's goods and services, so that a return to higher prices at a later date cannot be
achieved.
• Terms improvement. A company can offer longer payment terms or a more generous product
return policy. This approach will likely allow the company to scoop up sales from the more
financially unstable customers in a market, and can result in large bad debt losses. It also
requires more funding to pay for receivables that are outstanding for longer periods of time.
• Expanded marketing. A company can spend more marketing funds on improving the
branding of its products. If combined with no increase in product prices, the result can be a
perception that a company's offerings are a bargain, resulting in additional market share.
• Product differentiation. One of the better penetration strategies is product differentiation,
where a company creates new products that are notably different from and better than those
of competitors. It can take time for competitors to respond, giving a business the time to
garner more market share.
• Distribution channel expansion. A company can create a number of new ways in which to
sell its goods into a market, thereby addressing a larger audience. For example, distribution
could be through the Internet, retail stores, and street vendors. If competitors do not sell
through one of these channels, a company can gain market share for as long as there is no
response to this strategy.

15. Why Channels are created?

The specific avenue a seller uses to make a finished good or service available to you for purchase—
for example, whether you are able to buy it directly from the seller, at a store, online, from a
salesperson, and so on—is referred to as the product’s marketing channel (or distribution
channel). All of the people and organizations that buy, resell, and promote the product
“downstream” as it makes its way to you are part of the marketing channel. The firms a company
partners with to actively promote and sell a product as it travels through its marketing channel to
users are referred to by the firm as its channel members (or partners). Companies strive to choose
not only the best marketing channels but also the best channel partners. A strong channel partner
like Walmart can promote and sell the heck out of a product that might not otherwise turn a profit
for its producer. In turn, Walmart wants to work with strong channel partners it can depend on to
continuously provide it with great products that fly off the shelves. By contrast, a weak channel
partner can be a liability.

16. Enlist important functions of Marketing Managers?

Marketing managers or officers are focused mainly on the practical application and management
of an organization’s marketing operations. For marketing managers to be efficient and effective
in performing their functions, they should have excellent communication and analytical skills. In
small organizations, the marketing manager is in charge of the organization's entire marketing
activities and therefore handles formulating, directing and coordinating marketing activities so as
to influence customers to choose the organization's products over those of competitors.

A Marketing Manager Conducts Market Research

A marketing manager carries out market research to gain a clear understanding of what an
organization’s customers really want. Marketing research enables these managers to identify new
market opportunities, helping the organization create a market niche for its products or services.
Market research also involves studying the organization's competitors so as to develop superior
products and employ efficient marketing techniques. Companies conduct market research using
questionnaires, face-to-face interviews or analyzing the buying habits of consumers.

Developing the Marketing Strategy

Marketing managers are responsible for developing marketing strategies for their organizations.
These strategies outline clearly how an organization will promote its products and services to its
target market with an aim of increasing its sales volumes and maintaining a competitive edge over
its competitors.

Customer Relationship Management

The marketing manager performs the function of championing customer relationship management
in the organization. The marketing manager collects this information from the organization's
customer database to help create a customer satisfaction survey. Marketing managers then share
this information with other employees to ensure they offer excellent customer service to their
clients in order to build lasting relationships.

Employee Management

Marketing managers are in charge of the marketing department and therefore are responsible for
employees within their department. They assign duties and set targets for departmental staff. It is
also the function of marketing managers to perform periodic performance evaluations of the staff
working for them.

Identifying New Business Opportunities

Marketing managers analyze market trends with an aim of identifying unexploited or new markets
for the organization's products and services. Through studying the purchasing patterns of
consumers, they can identify the peak and off-peak demand periods for their products. By
employing sales forecasting, they can estimate future performance of the organization's products.
Also, through market analysis and forecasting, they can develop strategies to ensure the
organization remains competitive.
 UNIT-I
LONG TYPE QUESTIONS:-

Question 1. - Difference between marketing and selling with suitable examples Also clarify
the traditional and modern concept of marketing taking suitable examples .
Answer 1 :- Marketing And Selling:-

S. No. Marketing S. No. Selling

1. Marketing is about customer 1. Sales, on the other hand, is about selling
satisfaction. It starts with customer what the company produces. It doesn’t care
needs and demand and ends with about the need of the customer but about the
customer satisfaction. It is a profits.
customer oriented approach.
2. Marketing is about providing 2. Selling is about generating by maximising
quality products and consumer sales and is a money oriented approach.
satisfaction.
3. In marketing, emphasis is given on 3. Whereas in selling, emphasis is on the
the wants of the consumer. company’s products.
4. Marketing is different from selling 4. In selling, it is the other way round.
because here the company first
determines customers’ needs and
wants and then decides how to
deliver a product to satisfy these
wants.
5. In marketing the emphasis is on 5. Selling emphasizes on staying with existing
innovation in existing technology technology and reducing costs.
and providing better value to the
customer by adopting a superior
technology.
6. Marketing views the customer as 6. Selling views customer as a last link in
the very purpose of the business. business.

7. Planning in marketing is long-term- 7. Planning in selling is short-term-oriented in

oriented in today’s products and in terms of today’s products and markets.
terms of new products, tomorrow’s
markets and future growth.
8. Marketing follows customer 8. selling uses production oriented approach.
oriented approach .
9. Consumer determines price and 9. In selling, cost determines price.
price determines cost of marketing.
10. Marketing makes use of long-term 10. Selling makes use of short-term tactics to get
strategies to get sales – examples, sales – examples are free gifts, discounts,
value-added service, customer rebates, bribes, etc.
education, meeting objectives.
11. Marketing is an indirect activity. 11. sales is a direct activity.

12. Marketing starts with the buyers 12. Selling starts with the sellers and is
and focuses constantly on buyers preoccupied all the time with the seller
needs . needs.
13. Seeks to convert customer need into 13. Seeks to convert ‘products’into “cash”.
products .

14 Consumer determine the price 14. Cost determine the price.

;price determine the cost .
15 ‘Customer Satisfaction’is the 15 Sales is the primary motive.
primary motive .
16 External market orientation. 16 Internal company orientation .
17 Marketing concept takes an outside 17 Selling concept takes an inside – out
in persepective . persepective.
 18 Conceptual and analytical skills are 18 Selling and conservational skills are required
required . .

Traditional Concept of Marketing

According to this concept, marketing consists of those activities which are concerned with the
transfer of ownership of goods from producers to consumers. Thus, marketing means selling of
goods and services. In other words, it is the process by which goods are made available to ultimate
consumers from their place of origin. The traditional concept of marketing corresponds to the
general notion of marketing, which means selling goods and services after they have been
produced. The emphasis of marketing is on sale of goods and services. Consumer satisfaction is
not given adequate emphasis. Viewed in this way, marketing is regarded as production/sales
oriented.
Characteristics:
(1) This concept starts with the product or output which is produced in fac-tories.
(2) It stresses upon the product of the manufacturer.
(3) This concept focuses on the need and interests of the producer’s.
(4) The objective of marketing under traditional concept is maximizing profit by maximizing sales.
(5) The means to achieve objective of marketing i.e. profit maximization is achieved through
selling and promo-ting the product.
(6) This concept aims to achieve short term goals.
(7) Traditional concept includes produ-ction concept, product concept & selling concept.
(8) The focus of this concept is on production.
Modern Concept of Marketing
According to the modern concept, marketing is concerned with creation of customers. Creation of
customers means identification of consumer needs and organising business to satisfy these needs.
Marketing in the modern sense involves decisions regarding the following matters:
1. Products to be produced
2. Prices to be charged from customers
3. Promotional techniques to be adopted to contact and influence existing and potential customers.
4. Selection of middlemen to be used to distribute goods & services.
Modern concept of marketing requires all the above decisions to be taken after due consideration
of consumer needs and their satisfaction. The business objective of earning profit is sought to be
achieved through provision of consumer satisfaction. This concept of marketing is regarded as
consumer oriented as the emphasis of business is laid on consumer needs and their satisfaction.
Characteristics:
(1) This concept starts with target market selection and finding the needs and wants of the target
market so selected.
(2) It stresses upon the needs and wants of the consumer.
(3) This concept stress on the need and interest of the consumer.
(4) The objective of marketing under modern concept is profit, but through consumer satisfaction.
(5) The objective i.e. consumer satisfac-tion is achieved through coordinated marketing
techniques.
(6) This concept aims to achieve long term goals.
(7) Modern concept includes consumer oriented philosophy, societal oriented philosophy.
(8) The focus of this concept is on the consumer satisfaction.

Question2:- What are the controllable and uncontrollable factor’s in marketing

environment? Details in brief ?
Answer:- The Marketing Environment includes the Internal factors (employees, customers,
shareholders, retailers & distributors, etc.) and the External factors( political, legal, operations).

Some of these factors are controllable while some are uncontrollable and require business
operations to change accordingly. Firms must be well aware of its marketing environment in which
it is operating to overcome the negative impact the environment factors are imposing on firm’s
marketing activities. The marketing environment can be broadly classified into three parts:
➢ Internal Environment

The Internal Marketing Environment includes all the factors that are within the organization and
affects the overall business operations. These factors include labor, inventory, company policy,
logistics, budget, capital assets, etc. which are a part of the organization and affects the marketing
decision and its relationship with the customers. These factors can be controlled by the firm.

➢ Microenvironment
The Micro Marketing Environment includes all those factors that are closely associated with the
operations of the business and influences its functioning. The microenvironment factors include
customers, employees, suppliers, retailers & distributors, shareholders, Competitors, Government
and General Public. These factors are controllable to some extent.

These factors are further elaborated:

▪ Customers– Every business revolves around fulfilling the customer’s needs and wants. Thus,
each marketing strategy is customer oriented that focuses on understanding the need of the
customers and offering the best product that fulfills their needs.

▪ Employees– Employees are the main component of a business who contributes significantly to
its success. The quality of employees depends on the training and motivation sessions given to
them. Thus, Training & Development is crucial to impart marketing skills in an individual.

▪ Suppliers– Suppliers are the persons from whom the material is purchased to make a finished
good and hence are very important for the organization. It is crucial to identify the suppliers
existing in the market and choose the best that fulfills the firm’s requirement.

▪ Retailers & Distributors– The channel partners play an imperative role in determining the
success of marketing operations. Being in direct touch with customers they can give suggestions
about customer’s desires regarding a product and its services.

▪ Competitors– Keeping a close watch on competitors enables a company to design its

marketing strategy according to the trend prevailing in the market.

▪ Shareholders– Shareholders are the owners of the company, and every firm has an objective
of maximizing its shareholder’s wealth. Thus, marketing activities should be undertaken
keeping in mind the returns to shareholders.

▪ Government– The Government departments make several policies viz. Pricing policy, credit
policy, education policy, housing policy, etc. that do have an influence on the marketing
strategies. A company has to keep track on these policies and make the marketing programs
accordingly.
Macro factors

▪ Political & Legal Factors– With the change in political parties, several changes are seen in the
market in terms of trade, taxes, and duties, codes and practices, market regulations, etc. So the
firm has to comply with all these changes and the violation of which could penalize its business
operations.

▪ Economic Factors– Every business operates in the economy and is affected by the different
phases it is undergoing. In the case of recession, the marketing practices should be different as
what are followed during the inflation period.

▪ Social Factors– since business operates in a society and has some responsibility towards it
must follow the marketing practices that do not harm the sentiments of people. Also, the
companies are required to invest in the welfare of general people by constructing public
conveniences, parks, sponsoring education, etc.

▪ Technological Factors– As technology is advancing day by day, the firms have to keep
themselves updated so that customers needs can be met with more precision.

Therefore, marketing environment plays a crucial role in the operations of a business and must be
reviewed on a regular basis to avoid any difficulty.
Question3.: What are controllable and uncontrollable factor in Marketing mix? Discuss in
brief.
Answer:
1. Controllable factor - often called as "Marketing Mix". It includes: Product, Price, Place
and Promotion.
2. Uncontrollable factors- often called as "Environmental Factors“ which are out of control.
The marketing mix refers to the set of actions, or tactics, that a company uses to promote its
brand or product in the market. The 4Ps make up a typical marketing mix - Price, Product,
Promotion and Place. However, nowadays, the marketing mix increasingly includes several other
Ps like Packaging, Positioning, People and even Politics as vital mix elements.
Controllable factor
Price: refers to the value that is put for a product. It depends on costs of production, segment
targeted, ability of the market to pay, supply - demand and a host of other direct and indirect
factors. There can be several types of pricing strategies, each tied in with an overall business plan.
Pricing can also be used a demarcation, to differentiate and enhance the image of a product.
Product: refers to the item actually being sold. The product must deliver a minimum level of
performance; otherwise even the best work on the other elements of the marketing mix won't do
any good.
Place: refers to the point of sale. In every industry, catching the eye of the consumer and making
it easy for her to buy it is the main aim of a good distribution or 'place' strategy. Retailers pay a
premium for the right location. In fact, the mantra of a successful retail business is 'location,
location, location'.
Promotion: This refers to all the activities undertaken to make the product or service known to
the user and trade. This can include advertising, word of mouth, press reports, incentives,
commissions and awards to the trade. It can also include consumer schemes, direct marketing,
contests and prizes.

Uncontrolled Factors • Political Conditions • Economic Conditions • Socio-Cultural Conditions

• Technological Conditions • Legal Conditions • Competition • Marketing Channels
Political Forces
The political environment includes the characteristics and policies of the political party, the nature
of the constitution and the government system and environment encompassing the economic and
business policies. The most important policies are: Industrial Policy , EXIM and Trade Policy ,
Fiscal Policy
Economic Forces
• Global factors that are outside of the control of individual organizations, but that can affect the
way that businesses operate. • Economic factors include: Unemployment rates, Inflation rates,
Labor costs, Per capita income, Market size
Socio-Cultural Forces
• Countries with cultural similarity can generally be approached more easily as compared to
countries with cultural diversity. • Social environment also affects the motives to make a buying
decision and the communication strategy needs to be customized as per the varied social traits for
different market.
Technological Conditions
• There are vast variations in availability of technology between developed and emerging markets.
• Bajaj Auto accounts for 85% of the market share of three-wheelers in the Bangladesh market.
• Technological factors include ecological and environmental aspects, such as R&D activity,
automation, technology incentives and the rate of technological change. They can determine
barriers to entry, minimum efficient production level and influence outsourcing decisions.
Furthermore, technological shifts can affect costs, quality, and lead to innovation
Legal Forces
• Well-developed sound legal systems in the target market help to reduce the marketing risk and a
firm can expect a relatively unbiased and fair treatment.
• Countries at a higher stage of economic development and democratic form generally provide a
relatively independent and a more just legal system.
Competition
• The competition in international market includes products imported from various parts of the
world and also from the goods produced domestically in the target markets. The products imported
from other competing countries that have significantly different business environment affect the
competitiveness of the products.
Marketing Channels
• The differences in the structure of marketing channels necessitate appropriate changes in the
marketing mix. Generally, high-income countries, which have organized large-scale outlets have
higher stake in business negotiations.
Example: CONTROLLABLE FACTORS – MC DONALD’S INDIA
Mc Donald’s – Marketing Mix India
Indian Preferences: • Vegetarian Food • Spicy Food • So Mc Donald’s markets a product range
tailor made for Indian needs.
• Product Line Pricing: • McDonald’s offers a range of products prices according to use. So
one can order just a Coke or a Coke with a Burger at additional price.
• Product Bundle Pricing: McDonald’s combines several products in the same package. For
example one can buy a McAlooTikki alone or buy a customized meal.
• Promotional Pricing: McDonald’s clubs three or four products together as one and price of
this new one will be lesser than the sum total of individual product.
• Value Pricing: • McDonald’s has realized that Indian market is a price conscious market
and this has forced McDonald’s to provide value products. Examples are economy meal
and value meal served by McDonald’s in India.

UNIT -II

Q.1 What is marketing research? Enumerate the sequence of steps involved in marketing
research studies?
Answer:-
Definition: The process of gathering, analyzing and interpreting information about a market,
about a product or service to be offered for sale in that market, and about the past, present and
potential customers for the product or service; research into the characteristics, spending habits,
location and needs of your business's target market, the industry as a whole, and the particular
competitors you face.
Market research provides relevant data to help solve marketing challenges that a business will most
likely face--an integral part of the business planning process. In fact, strategies such as market
segmentation (identifying specific groups within a market) and product differentiation (creating
 an identity for a product or service that separates it from those of the competitors) are impossible
to develop without market research.

Market research involves two types of data:

1) Primary information. This is research you compile yourself or hire someone to gather for you.
2) Secondary information. This type of research is already compiled and organized for you.
Examples of secondary information include reports and studies by government agencies, trade
associations or other businesses within your industry. Most of the research you gather will most
likely be secondary.
1) Primary information :

In addition to being cost-effective, speed is another advantage of telephone interviews. A rate of

five or six interviews per hour is typical, but experienced interviewers may be able to conduct
more. Phone interviews also can cover a wide geographic range relatively inexpensively. Phone
costs can be reduced by taking advantage of less expensive rates during certain hours.

One of the most effective forms of marketing research is the personal interview. They can be either
of these types:

• A group survey. Used mostly by big business, group interviews or focus groups are useful
brainstorming tools for getting information on product ideas, buying preferences, and purchasing
decisions among certain populations.
• The in-depth interview. These one-on-one interviews are either focused or nondirective. Focused
interviews are based on questions selected ahead of time, while nondirective interviews encourage
respondents to address certain topics with minimal questioning.

2) Secondary Research:-

Secondary research uses outside information assembled by government agencies, industry and
trade associations, labor unions, media sources, chambers of commerce, and so on. It's usually
published in pamphlets, newsletters, trade publications, magazines, and newspapers. Secondary
sources include the following:
 1) Public sources. These are usually free, often offer a lot of good information, and include
government departments, business departments of public libraries, and so on.
2) Commercial sources. These are valuable, but usually involve cost factors such as subscription
and association fees. Commercial sources include research and trade associations, such as Dun &
Bradstreet and Robert Morris & Associates, banks and other financial institutions, and publicly
traded corporations.
3) Educational institutions. These are frequently overlooked as valuable information sources even
though more research is conducted in colleges, universities, and technical institutes than virtually
any sector of the business community.

The various stages in the market research are as follows :-

IDENTIFICATION
AND DEFINING STATEMENT
THE PROBLEM OF
FORMULATING
RESEARCH
CONCLUSION,
OBJECTIVE
PREPARING AND
PRESENTING
THE REPORT

VARIOUS PLANNING
STAGES THE
INVOLVED IN RESEARCH
DATA DESIGN
PROCESSIN MARKET
G AND RESEARCH
ANALYSIS

DATA
COLLECTION PLANNING
THE SAMPLE
1. Identification and Defining the Problem:
The market research process begins with the identification “of a problem faced by the company.
The clear-cut statement of problem may not be possible at the very outset of research process
because often only the symptoms of the problems are apparent at that stage. Then, after some
explanatory research, clear definition of the problem is of crucial importance in marketing research
because such research is a costly process involving time, energy and money.

Clear definition of the problem helps the researcher in all subsequent research efforts including
setting of proper research objectives, the determination of the techniques to be used, and the extent
of information to be collected.

2. Statement of Research Objectives:

After identifying and defining the problem with or without explanatory research, the researcher
must take a formal statement of research objectives. Such objectives may be stated in qualitative
or quantitative terms and expressed as research questions, statement or hypothesis. For example,
the research objective, “To find out the extent to which sales promotion schemes affected the sales
volume” is a research objective expressed as a statement.

Example of another hypothesis may be: “The new packaging pattern has resulted in increase in
sales and profits.” Once the objectives or the hypotheses are developed, the researcher is ready to
choose the research design.

3. Planning the Research Design or Designing the Research Study:

After defining the research problem and deciding the objectives, the research design must be
developed. A research design is a master plan specifying the procedure for collecting and analysing
the needed information. It represents a framework for the research plan of action.
The objectives of the study are included in the research design to ensure that data collected are
relevant to the objectives. At this stage, the researcher should also determine the type of sources
of information needed, the data collection method (e.g., survey or interview), the sampling,
methodology, and the timing and possible costs of research.
4. Planning the Sample:
Sampling involves procedures that use a small number of items or parts of the ‘population’ (total
items) to make conclusion regarding the ‘population’. Important questions in this regard are—
who is to be sampled as a rightly representative lot? Which is the target ‘population’? What
should be the sample size—how large or how small? How to select the various units to make
up the sample?

5. Data Collection:
The collection of data relates to the gathering of facts to be used in solving the problem. Hence,
methods of market research are essentially methods of data collection. Data can be secondary, i.e.,
collected from concerned reports, magazines and other periodicals, especially written articles,
government publications, company publications, books, etc.

Data can be primary, i.e., collected from the original base through empirical research by means of
various tools.

There can be broadly two types of sources

(i) Internal sources—existing within the firm itself, such as accounting data, salesmen’s reports,
etc.

(ii) External sources—outside the firm.

6. Data Processing and Analysis:

Once data have been collected, these have to be converted into a format that will suggest answers
to the initially identified and defined problem. Data processing begins with the editing of data and
its coding. Editing involves inspecting the data-collection forms for omission, legibility, and
consistency in classification. Before tabulation, responses need to be classified into meaningful
categories.
Analysis of data represents the application of logic to the understanding of data collected about
the subject. In its simplest form analysis may involve determination of consistent patterns and
summarising of appropriate details.
7. Formulating Conclusion, Preparing and Presenting the Report:
The final stage in the marketing research process is that of interpreting the information and drawing
conclusion for use in managerial decision. The research report should clearly and effectively
communicate the research findings and need not include complicated statement about the technical
aspect of the study and research methods.

Question 2 :- Highlight important of marketing information system for the customer in

marketing? Discuss its issues and challenges.

Answer:-

It as a "system in which marketing data is formally gathered, stored, analysed and distributed
to managers in accordance with their informational needs on a regular basis." In addition, the
online business dictionary defines Marketing Information System (MKIS) as "a system that
analyzes and assesses marketing information, gathered continuously from sources inside and
outside an organization or a store." Furthermore, "an overall Marketing Information System can
be defined as a set structure of procedures and methods for the regular, planned collection, analysis
and presentation of information for use in making marketing decisions."

Importance Of Marketing Information System

Marketing information system has become an essential part of the marketing decision making
process. Importance of marketing information system can be described as follows:

1. Closing Information Gap

Expansion of the geographical market coverage from local-to national-to international scale has
made marketing information system vital for day to day operation of an organization. This
expansion of the market coverage has widened the information gap between the organization and
its market.
The information need of an organization that operates at the local market level is less than that of
an organization that operates the national market level. The information need of exporters who
operate at the international level is very high, because they operate very far from their market.
Marketing information system provides information on the local, the national and the international
markets.

[Link] Creation And Delivery:-Today, marketing goals have changed from understanding and
satisfying buyer's needs to want creation and delivery. It has posed a greater challenge for
organization to more accurately understand the consumer's desires located in the subconscious part
of the mind.
Marketing has reached a new height where organizations strive to create, mold and modify new
desires and want among the consumers. This requires the organization to undertake intensive
consumer research activities targeted at probing deeply into the mind of consumers. The mind-
probing exercise is conducted to understand the hidden and ungratified desires of consumer groups
and stimulating these desires to take the shape of wants for products.
In the highly competitive world, success of an organization depends on creating wants and
delivering products that specially satisfy the created wants. This new challenge has increased the
role of marketing information system for an organization.

3. Non-price Competition

Organizations, to-day believe that price competition leads to price cuts, which usually results in a
loss not only to individual organizations but to the industry as a whole. Organizations prefer to
compete over non-price factors, such as product differentiation, image, service and promotion.
Implementation of non-price competition requires a variety of information on consumers'
awareness and attitude towards the organization's and competitors' products, product positions in
the market, the services offered by competitors, effectiveness of promotional tools etc. Such vital
information is provided to the decision makers by the marketing information system.

[Link] Monitoring And Scanning

Organizations need to constantly monitor the movements in the environmental forces, particularly
the economic, competitive, technological and political environment of the market. Changes in any
of the environmental forces bring challenges and new opportunities to the organization.
Environmental scanning process collects vital information on the development taking place in the
environment and prepares the organization to face the threats and capitalize on the new
opportunities. Environmental monitoring and scanning are integral parts of the marketing
information system.

5. Marketing Planning

Marketing planning involves a detailed planning of the marketing activities in relation to the needs
of the target markets. In a competitive market, the success of and organization depends on adequate
and accurate marketing planning. Planning requires variety of information on the market including
demand estimates and sales forecasts, which are supplied by the marketing information system.

[Link] And Control

Regular evaluation and control of the marketing program are important activities of the marketing
management process. the organization needs to know to what extent its program has been
successful, to what level it has met the desired targets, in what forms modifications and corrections
are necessary and so on. Such information is provided by the marketing information system.

The challenges and problems of management information systems

If all the existing barriers are divided into humanistic, organizational and environmental factors,
the major drawbacks and the reasons of failure and using MIS in public organizations are as
following:
Humanistic factors:
• The lack of information of the managers and users as they don’t know exactly what they want
and what their information needs are.
• The lack of understanding of the needs of the users by designers (the lack of correct definition
of the needs and their analysis)
• The lack of information of the managers and users about the collaboration method with the
designer team.
• The lack of participation of the managers and users in system design.
• The lack of understanding of the managers of software and information systems.
• The lack of information of most of the analysts and programmers (designers) with new system
work environment.
• The lack of acceptance of the system executers and resistance against the change.
• The lack of accuracy in the data collected
Organizational factors:
• The lack of good conditions for participation and collaboration of the managers, users and system
directors
• The lack of consistency and complexity of the existing manual systems.
• The lack of existing systems and methods analysis before the system design
• The lack of evaluation of the existing power
• Bad condition of educating the specialized forces
• The lack of human resources with management and computer fields and other required
specializations (the problems of absorbing human resources)
• Inadequate education of the users
• Inadequate and incomplete documentation
• Unsuitable implementation of the system

Environmental factors:

• The lack of quality criterion of the existing information systems in Iran

• The lack of suitable consultants for designing the system and software
• The lack of procedures and methodology and stages of creating the system
• The lack of evaluation of environmental aspects in management information systems
• The lack of suitable use of mass media to develop the culture of using computer and information
systems.
• The lack of holding suitable MA training courses in the universities and the lack of suitable
education of human resources in this regard.
• The lack of ratification of the suitable rules in Islamic council parliament and government board
and the considerable problem in this regard.
• The lack of serious consideration and adequate investment in this regard stem through regular
market monitoring and occasional market research activities.

Q3. What is market segmentation? Why & how are market segmented? discuss taking
suitable example?
Answer :-Meaning
Market segmentation is the activity of dividing a broad consumer or business market, normally
consisting of existing and potential customers, into sub-groups of consumers (known as segments)
based on some type of shared characteristics. In dividing or segmenting markets, researchers
typically look for common characteristics such as shared needs, common interests, similar
lifestyles or even similar demographic profiles. The overall aim of segmentation is to identify high
yield segments – that is, those segments that are likely to be the most profitable or that have growth
potential – so that these can be selected for special attention (i.e. become target markets)
Market segmentation assumes that different market segments require different marketing programs
– that is, different offers, prices, promotion, distribution or some combination of marketing
variables. Market segmentation is not only designed to identify the most profitable segments, but
also to develop profiles of key segments in order to better understand their needs and purchase
motivations. Many marketers use the S-T-P approach;
Segmentation → Targeting → Positioning to provide the framework for marketing planning
objectives.
Types of Market Segmentation

There are 4 types of Market segmentation which are most commonly used. Market segmentation is
one of the oldest marketing trick in the books. With the customer population and preferences
becoming more wider, and the competitive options becoming more available, market
segmentation has become critical in any business or marketing plan. In
fact, people launch products keeping the market segmentation in mind.
1) Demographic segmentation

Demographic segmentation is one of the simplest and most widest type of market segmentation
used. Most companies use it to get the right population in using their products. Segmentation
generally divides a population based on variables. Thus demographic segmentation too has its own
variables such as Age, gender, family size, income, occupation, religion, race and nationality. To
read more, click on this link forDemographic segmentation .

Demographic segmentation can be seen applied in the automobile market. The automobile market
has different price brackets in which automobiles are manufactured. For example – Maruti has the
low price bracket and therefore manufactures people driven cars. Audiand BMW have the high
price bracket so it targets high end buyers. Thus in this case, the segmentation is being done on the
basis of earnings which is a part of demography. Similarly, Age, life cyclestages, gender, income
etc can be used for demographic type of market segmentation.

2) Behavioral segmentation

This type of market segmentation divides the population on the basis of their behavior, usage
and decision making pattern. For example – young people will always prefer Dove as a soap,
whereas sports enthusiast will use Lifebuoy. This is an example of behavior based segmentation.
Based on the behavior of an individual, the product is marketed.

Intensive distribution and its application in business

This type of market segmentation is in boom especially in the smart phone market. For example
– Blackberry was launched for users who were business people, Samsung was launched for users
who likeandroid and like various applications for a free price, and Apple was launched for
the premium customers who want to be a part of a unique and popular niche.

Another example of behavioral segmentation is marketing during festivals. Say on christmas, the
buying patterns will be completely different as compared to buying patterns on normal days. Thus,
the usage segmentation is also a type of behavioral segmentation. To read more in depth about
behavioral segmentation, do read this article.

3) Psychographic segmentation

Psychographic segmentation is one which uses lifestyle of people, their activities, interests as well
as opinions to define a market segment. Psychographic segmentation is quite similar to behavioral
segmentation. But psychographic segmentation also takes the psychological aspects of consumer
buying behavior into accounts. These psychological aspects may be consumers lifestyle, his social
standing as well as his AIO. Do refer more to Activities, interests and opinions.

Application of psychographic segmentation can be seen all across nowadays. For example
– Zara markets itself on the basis of lifestyle, where customers who want the latest and differential
clothing can visit the Zara stores. Similarly, Arrow markets itself to the premium office lifestyle
where probably your bosses and super bosses shop for the sharp clothing. Thus, this type of
segmentation is mainly based on lifestyle or AIO.

4) Geographic segmentation

This type of market segmentation divides people on the basis of geography. Your potential
customers will have different needs based on the geography they are located in. In the article
on geographic segmentation, i have explained how people who are located in non municipal areas
might require a RO water purifier whereas those located in municipal areas might need UV based
purifiers. Thus, the need can vary on the basis of geography.

Importance of Market Segmentation

Companies will not survive if the marketing strategy is dependent upon targeting an entire mass
market. The importance of market segmentation is that it allows a business to precisely reach a
consumer with specific needs and wants. In the long run, this benefits the company because they
are able to use their corporate resources more effectively and make better strategic marketing
decisions. While market segmentation is initial step in marketing due to its importance to define
the target customer, designers need to clearly understand the market segment for the following
reasons:

Understand their customers

At the beginning of the design thinking process, the design team need to apply a research phase
where they tend to understand their audience needs and subsequently build a persona that
represents the target audience. The market segmentation helps the design team to define the
research scope and subsequently build a product that meet with the customer’s needs.

Align with the marketing team

When the company aims to establish a new brand in the [Link] tends to define the market
segment that need to addressed. This can be in an early stage of product development stages. Both
the marketing and design team should have a clear understanding about the targeted market
segment in order to ensure that both teams are aligning their strategies together

Switching Between Segmentation Types

While the very quick review to the BMW Mini Cooper, it provides a clear example for the market
segmentation as a variable factor in the marketing process rather than a fixed one. Enterprises can
shift from concentrated segment strategy to multi-segment strategy based on number of factors
including the expanding the consumer base and accessing new markets.

For long time, Mini Cooper was known as the cool British car for individual with special taste and
high energy; mostly young consumers with the age range 20-30. It is also promoted in the British
market as the historic iconic UK car for young energetic young consumer. These were not
associated with any of the values in the United States market.

Although Mini was known as young energetic car, it has other market segment focus but these
segments were no universal. Generally Mini Cooper segments the market based on two factors,
the first one is based on the people emotions and the geographical location.
The designers must have very good understanding to the marketing segmentation strategy before
the new product development (NPD) in order to build a product design that are functional and
viable in the real market. it is also important to learn that the segment is not a fixed value through
the company life, new products can be produced to open new segments, which turns the company
strategy by default from concentrated segmentation to multi-segmentation strategy.

Additionally, expanding the business may lead to increasing the segmentation based on number of
factors such as the emotional factors and geographical location. Both design and marketing teams
should integrate together along with these changes in sustain a successful production process.