MM End Term MCQ - Merged

Chapter 10
Dynamics of Place in Marketing

Place is thus defined as the product’s proper distribution and ensuring availability at a convenient location at the right
time. As we have earlier understood, place is the element of the marketing mix that ensures that the product is distributed
and made conveniently available for the consumer - at the right location at the right time. Place decisions outline where a
company sells a product and how it delivers the product to the market. The goal of business executives is to get their
products in front of the consumers most likely to buy them.
There are various important aspects linked to the place such as it reaches goods, makes it available closer to your
customers, from where it is easy to introduce and communicate about your products, allowing you to engage better and
provides required exclusivity to customers. It also helps you to launch new products, get promotions successfully
executed and develop your exchange business. Through a finance model also we understood the importance of place.
In the competitive era, while it is not feasible to reduce other costs to remain competitive, cost of distribution helps you to
economize by bringing efficiency within the distribution system. Importance of distribution channel is that it helps all
stakeholders to reduce transactions among each other’s, whereby efficiency in the business comes.
We have studied different channels of distribution such as direct, indirect, dual, and reverse distribution. We have briefly
learnt about different channel members like agent, wholesaler, retailer etc. Channel specific decisions needs you to set
goals and direction, select distribution strategies, determine issues influencing channel strategy, assessing benefits of
distribution channels, and assessing possible channel costs. To decide the best distribution channel to use, a company
needs to analyze the customer and understand their needs, discuss, and finalize channel objectives work out distribution
tasks and processes. Three main distribution strategies that can be used are intensive distribution , selective distribution,
and exclusive distribution.
Issues that influence channel strategy are two-fold namely factors affecting channel choice, and distribution intensity.
While making channel decisions, a company may need to weigh the benefits of a partner with the associated costs.
Potential benefits to look out for include having a specialists, quick exchange time, variety for the consumers, small
quantities, sales creation, payment options, information gathering. There are some costs that a producer may have to
weigh in order to make channel decisions namely lost revenue, lost communication control and lost product importance.
Distribution management being a strategic aspect, needs you to analyze the consumer, establish the channel objectives,
specify distribution tasks, evaluate and select among channel alternatives, evaluate channel member performance
besides other aspects. Consumer analysis covers final end consumers and trade channels as your customers. Universal
objectives set includes either growth in sales by reaching new markets, maintenance or improve of market share, achieve
a desired pattern of distribution, reduce costs, or increase profits. Selection among channel alternatives needs
considerations to number of levels, intensity at each levels, types of intermediaries to choose and their selection and
evaluation criteria before finalization. On various parameters, channel’s performance can be evaluated.
We have also studied different emerging channels of distribution. Online is a virtual marketplace provided either by the
company or sold through third-party platforms like Flipkart etc. Another emerging channel is Licensing. Under licensing
organization as a licensor, will be granting a third party (known as the licensee) the right to utilize trademarks and,
possibly, business systems and intellectual property. In product, where quality can be guaranteed at the manufacturing
level itself, such arrangement is feasible. Franchising is another alternative channel. Franchising is a proven business and
legal model for multi-unit expansion. In licensing we saw that it is suitable for products whose quality can be guaranteed at
the manufacturing level, franchising is suitable for products/services whose quality is created at the place, where it is
produced e.g.: Pizzas. In such a case, franchising is an ideal solution. Franchised expansion occurs with the assistance of
the capital and managerial efforts of what we would hope are qualified franchisees, and product, process, backend
system support, and manpower training, standardized packaging is undertaken by parent organization i.e. franchisor.
Channel role in distribution is multifold. Marketing needs to create four utilities namely form utility, possession utility, place
utility and time utility. Time and place utilities are created by distribution channels only. Role of channels of distribution are
many such as enhanced efficiency, smooth flow of goods and services, reducing cost of transactions, facilitate search,
less stock of goods, proximity to consumers.
Chapter 9
Marketing Communication
The Marketing Communication refers to the means adopted by the companies to convey messages about the products
and the brands they sell, either directly or indirectly to the customers with the intention to persuade them to purchase. The
marketer uses different mediums of marketing communication. MarCom answers questions related to product’s use such
as why, how, who, where and when can product be used.
Communication simply means passing the information from the sender to the receiver. Marketing communication follows
specific process which has sender’s field of experience and receiver’s field of experience. Critical aspect of ‘Noise’ and
‘Feedback’ from receiver is important and channel used must be free from the noise and facilitates the feedback. Effective
MarCom should have a persuasive message, design, and feedback mechanism.
Marketing communication is designed for target segment, designed to influence, and designed to reaffirm. For the
effective marketing communication media is your multiplier and engagement are critical. Role of MarCom starts as voice
of the company, build customer/brand equity till it leads to the purchase. Objective of MarCom is to communicate, to
compete and to convince.
A marketing manager from one company communicates with the target segment/s using promotion mix studied earlier
such as advertising, sales promotion, personal selling, public relations, and direct marketing. Under each elements also
there are several options available. There are numerous factors like budget availability, PLC stage of the product affects
MarCom.
MarCom can utilize media/channels such as advertising, sales promotion, personal selling, public relations, direct
marketing as well as facilitate relationship marketing, events, handle interactive marketing and word of mouth marketing.
Advertising is a) designed to communicate with large audience b) create brand awareness c) develop brand image d)
achieve brand differentiation and e) launch new products. Advertising media are a) Print media b) Broadcast media c)
Online media and d) Digital media. Advertising media must be carefully evaluated using AIMRITE model. Advertising
mediums are selected based on two critical parameters – 1) Reach & 2) Frequency.
Emphasize of MarCom in sales promotion is on communicating the offer in a way it induces the individuals to act upon.
Marketing helps development of marketing communications to aid personal selling – leaflets, brochures, presentations,
lead generation initiatives etc. MarCom as Public Relations addresses aspect of reaching relevant info to all stakeholders
to build product/brand and develop corporate image. Under direct marketing, MarCom role is to create interest, reveal
offer and generate immediate, measurable response. We have studied few other MarCom media.
Managing advertising involves challenge decoding, strategy development and execution and response monitoring. A
campaign is defined as a uni-focus, short-term marketing communication program, making use of various mass media,
aimed at a defined target audience. Eight steps involved in developing an advertising campaign includes identifying target
audience, create advertising problem, define advertising objectives, determine advertising budget, develop media plan,
creating the advertising campaign, executing the campaign and evaluate advertisement effectiveness. Advertising budget
can be developed using either Objective and tasks method, percentage of sale or competition voice matching. Media plan
can be developed once you know your target audience, then define your media goals and finally develop media strategy.
While developing a message consider characteristics of the target audience, type of media used, product factors and
overall advertising objective. Most advertising messages share common elements such as the Appeal, value proposition
and slogan. We have covered various aspects of digital marketing such as SEO, content marketing, social media
marketing, pay per click, affiliate, native marketing.
We have learnt about integrated marketing communication (IMC). When you achieve coordinated communication
concept, you have practiced INTEGRATED MARKETING COMMUNICATIONS (IMC). Harmony between different media
channels / promotional mix is essential to deliver one message IMPACTFULLY. Overall, all the messages from the
organization tell the same story.
Marketing communication for a new product must handle two tangents – the diffusion process and the adoption process.
The diffusion process understanding covers how innovations spread within a market using channels of communication.
Marketing communication need to also handle resistance to new product adoption after understanding reasons behind.
Products are adopted by individual adopters. However, all adopters are not same. There are classifications like
innovators, early adopters, early majority, late majority, and laggards. Any consumer moves through five stages in arriving
at a decision to purchase or reject a new product, namely 1) Awareness 2) Interest 3) Evaluation 4) Trial and 5) Adoption
(or rejection). Marketing communication needs to address one of the above aspect to trigger product adoption.
We also studied various challenges involved in handling marketing communication such as unification of problem
definition, setting common goals, setting weightage for MarCom mix elements, unifying multiple consumer touchpoints
and merging technology in your organization.
Chapter 8
Promotion Decisions Under Marketing

When marketers promote any product, they are engaging in persuasive communication recognized as promotion. You do
promotions to influence your target customers to buy from you. The aim of promotion is to increase awareness, create
interest, encourage first trial, generate sales, or create brand loyalty. The subject of promotion covers promotion mix,
promotion strategies, and promotion plan.
There are types of promotions such as product, trade, and institutional promotions. Promotion mix is ‘The blend of several
promotional tools used by the business to create, maintain and increase the demand for goods and services’. 5 elements
of any promotion mix are advertising, sales promotion, personal selling, public relations (& publicity) and direct marketing.
Additionally, we have covered two additional elements namely retail engagement and digital engagements.
We have covered in detail our understanding about the sales promotion, personal selling, public relations, and direct
marketing. Advertising will be separately covered in the other chapter. Sales promotion means media/non-media
communication with inducing offer for the limited period to compel consumers to buy goods immediately. Personal selling
is one to one interaction-based sales approach. Public relations promote a positive image, generate publicity and foster
goodwill with the intent of increasing sales. Direct marketing is a form of advertising aimed directly at target customers
(usually in their homes or offices) that asks the receiver to take an action.
Sales promotion is done due to various reasons such as retain existing customers, pull new customers, outsmart
competition, encourage trade channels, increase foot falls etc. Sales promotion is of two types a) Product specific sales
promotion and b) Trade promotions. In a fiercely competitive market, it is required to provide sufficient incentives to
various trade channel members which may include attractive terms of sale, sealer contests and services to dealers.
Fundamental focus during sales promotion planning should be to set it for the right segment, will it lead to call for action,
compliment strategic marketing planning, sales promotions are aligned with the brand image and inducing repeat
purchase. Few important challenges include communicating value, showing instead of telling, understanding multi-buyer
need, assessing the latest technology, and connecting on an emotional level.
Personal selling is all about face to face interaction and ability of that individuals to talk about products, differentiate it from
the competition, handle objections and negotiation and bring regular business. Personal selling is important for
persuading prospects, selling complex products, managing the sales cycle, and developing customer relationships. There
are different types of personal selling namely order finalizer, order taker, customer sales support personnel, over the
counter sales personnel and impersonal selling. The personal selling process consists of prospecting, pre-approach,
approach, presentation, close and follow-ups.
We have also covered numerous aspects of public relations (& publicity). Public relations handled aspects like investor
relations, government relations, media relations, media production, customer relations, marketing communications,
influencers, social media, and internal communications. Public relations management roles include strategic
management, communication management, launch management, issues management, relationship management,
reputation management, crisis management, resource management and risk management.
Direct marketing is a targeted form of marketing that presents information of potential interest to a consumer that has
been determined to be a likely buyer.
Few aspects make the direct marketing different namely targeted buyer, it is a medium to reach directly, compelling offer,
call for action, variations feasible, test marketing possible, undercover operation vis-à-vis competition and measurability.
Direct marketing needs steps like database building, offer & call for action, make the source identifiable, test the
campaign, consumer response and measure the response.
We have studied multi-steps understanding about how to establish your promotional mix - a) Determine Your Target
Market b) Determine Your Objectives c) Design your message d) Select your promotional channels e) Determine your
budget f) Determine your promotional mix and g) Measure the results of the implemented program.
We have also covered promotion mix for the B2B industrial products. B2B promotion can improve sales
effectiveness/reduces personal selling costs but it cannot cover product shortcomings. B2B promotion should achieve
certain aspects for its target customers such as achieve solutions to problems, induce action, fulfill the target group’s
motives and influence customer attitudes.
We have covered promotion mix in service marketing. Promotion improves experiential feasibility, offers a levers to
continuously engage and facilitates word of mouth and viral marketing. Service marketing promotion for target customers
such as help tangibalization of service, offer service experience opportunity, induce action, and develop customer
attitudes.
Different promotion mix elements needs to achieve different objectives or the organization be it B2B or service marketing.
Chapter 7
Pricing Decisions Under Marketing

Pricing is a strategic element of marketing mix because it is not that people buy goods based on price, but people buy
goods based on value they receive from the product they acquire.
Price is the value that is put to a product or service and is the result of a complex set of calculations, research and
understanding and risk-taking ability. Pricing is the method of determining the value a producer will get in the exchange of
goods and services. A pricing strategy considers segments, ability to pay, market conditions, competitor actions, trade
margins and input costs, amongst others. It is targeted at the defined customers and against competitors.
While setting the price of a product or service, few points needs considerations such as nature of the product, the price of
similar product, target audience, the cost of production, external factors.
Certain factors affect your ability to price such as product characteristics, product cost, objectives of the firm, competitive
situation, demand for the product and customers’ behaviour.
Role of price is to communicate quality, value, offer inducement to use and generate revenue and profit as per the
marketing objective.
Pricing objective could be survival, maximizing the current profits, capturing huge market share, market skimming, and
establish product–quality leadership.
We have understood three base methods of pricing namely 1) cost-based pricing 2) competition-based pricing and 3)
Demand based or value-based pricing. Cost-based pricing includes methods like markup pricing, keystoning, profit
maximization pricing, break-even pricing, and target-return pricing.
One important aspect to remember is the dual-factor relationship of pricing – price vis-à-vis quality/demand/value. Based
on this understanding certain obvious pricing strategies are available.
We have studied core pricing strategies namely Premium pricing, Penetration pricing, Economy pricing and Skimming
pricing. We have studied derived pricing strategies namely Product line pricing, Captive product pricing, Bundle pricing,
Psychological pricing, Geographical pricing, Neutral pricing, Optional product pricing and Value pricing. We have also
studied institutional and government pricing (tendering) as well as pricing of services, which is a result of tangibalization,
customer value, service provider’s skill sets. Pricing of service could be cost based, competition based, or demand based.
We have also studied price elasticity of demand, which is a measure that gives the percentage change in quantity
demanded in response to a one percent change in price. Price elasticity of demand further divided into Perfectly Elastic
Demand (∞) Perfectly Inelastic Demand (0) Relatively Elastic Demand (> 1) Relatively Inelastic Demand (< 1) and Unitary
Elasticity Demand (= 1).
We have understood significance of creating value and developing your price to extract maximum out of customers who
feel you are delivering the value promised. We also considered few challenges being faced in deciding your price such as
alignment with product’s life cycle stage, the market growth, erosion in product value, post-skimming strategy, pricing
during maturity and pricing during decline stage.
Marketing MCQ - Provided by sir in revision lecture
Promotion refers to any type of marketing communication used to inform or ___ of the relative
merits of a product, service, brand or issue.
entice customers to buy
persuade target audiences
inform offer to induce customers
compel to act on your offer
ans 2
Promotions are for specific immediate objectives such as lead generation, first trial, ____, loyalty
recognition.
sales query resolution
customer database updation
repeat purchase drive
seek more sale from existing customers
ANS 3
Promotion is one of the Ps of the marketing mix. The subject of promotion covers promotion mix,
___, and promotion plan.
promotion approach
promotion initiatives
promotion policy
promotion strategies
ANS 4
The purpose of one of the types of promotion is to encourage and offer incentives to distributors to
push more of your products in the market. Identify the type of promotion.
institutional promotion
trade promotion
marketing promotion
sales promotions
ANS 2
Marketing mix of any organization have ‘_____’, which is a blend of several promotional tools used
by the business to create, maintain and increase the demand for goods and services.
media mix
product mix
promotion mix
publicity mix
ANS 3
There are five elements of any promotion mix namely advertising, __, personal selling, public
relations and direct marketing. Identify missing elements.
digital promotion
sales promotion
public relations
consumer promotion
ANS 2
There are three different types of promotions. Rishikesh, handling new mixer promotion in which
product's key benefit is loudly explained and limited period offer is given to those who do spot
booking by just paying 5% of the cost of product and take delivery anytime within next 3 months.
This type of promotion is recognised as?
product promotion
channel promotion
consumer promotion
trade promotion
ANS 1
Each promotion mix is effective at certain stage. When ____ with customers he can utilize
Advertising for sending non-personal communication.
seller has multiple product mix and wish to reach all consumers in one go
seller has high corporate image which can be leveraged to sell
seller is keen to target different geographical markets
seller does not have possibility of direct contact
ANS 4
B2B market is complex. For a product like GenSet you need use personal selling approach. Personal
selling approach includes what?
tendering, negotiation and closure
meet client, conduct meeting, demonstration, negotiations etc.
deploying salesman from authorized distributor to sell
utilizing personal past contacts to sell existing company's products
ANS 2
In every TAJ MAHAL GROUP HOTELS, you get a form in which you need to answer few questions,
write a slogan and provide your personal details to be eligible for mega prizes offered by the
respective advertisers. This form of sales promotion is known as __?
Loyalty programme
Contests approach
Sweepstakes approach
Rebate programme
ANS 3
‘______’ is a direct communication between seller & buyer either face to face or through telephone
with the intention to make the sale.
Personal selling
Direct marketing
Sales promotions
Digital marketing
ANS 4
Public relations is a ____ because it builds mutually beneficial relationships between organizations
and public.
strategic communication
organizational communication
social communication
not for profit
ANS 1
Direct marketing is a promotional mix method that involves presenting information about your
company, product, or service to your target customer without the use of ___.
advertising mediums
sales promotion approach
any advertising middleman
Digital marketing
ANS 3
Industrial (B2B) promotions needs to achieve certain things different from B2C market. Amitabh,
Head-Marketing ready to launch new industrial conveyor belts, which operates at 25% faster speed
on existing motors installed thus I can move more goods in short time and save electricity also. his
predict is well accepted because his B2B promotion would have achieved specific deliverable. What
this deliverable could be?
introduce company product range
highlighted solution to the problem
enrich information
fulfilled the target group’s key motive
ANS 4
Various important points that you need to take care of for effective marketing communications are
a) _____ b) design and c) feedback.
communication idea
persuasive message
message delivery
message mediums
ANS 2
Marketing communication has to achieve three core objectives namely convey product, inform
about the product and _____.
persuade to buy
develop desire to acquire
persuade to collect info
seek demonstration
ANS 1
Marketing communication process is well defined. It begins with sender, encoding, message sending,
decoding and receiver. second lag namely receiver, decoding is also identified as _____.
Receiver's field of experience
Sender's field of experience
decoding to messaging
Receiver's decoding
ANS 1
Madhusudan, Head-Marketing VOLINI India, developed one TV Commercial for new pain relieving
ointment in which they are showing wife getting a backache while working and husband quickly
removed and applies the ointment post which both in a jovial mood playing with the kid. Why do
you think this will work to create desired impact?
Designed to influence
Achieves necessary engagement
Designed to re-affirm
Designed for target segment
ANS 4
The sole purpose of marketing communication is to increase the volume of sales by ensuring 4
important aspects of marketing communication namely information, persuasion, ____ and credibility
is integrated.
actionability
inducement
reinforcement
None of the given options
ANS 3
Advertising media must be carefully evaluated. It pursues media evaluation model namely AIMRITE,
where M stands for ____.
media
message
mode
maximization
ANS 2
Advertising mediums are selected based on two critical parameters, One of the parameters looks at
the number of people you touch with your message. This is recognized as _____?
Reach
Reliability
Rationality
Relativity
ANS 1
For managing advertising, there are three core phases that needs to be managed, namely challenge
decoding, _____, and execution and response monitoring.
defining the objectives
strategy development
deciding nature of advertising
deciding the medium
ANS 2
For managing advertising, there are three core phases that needs to be managed. Post first core
phase of decoding the challenge, you need to get on with the development of ___ and same must
get aligned to marketing goals.
organization goals
SBU goals
channel goals
marketing strategies
Ans 4
When you develop your media plan, you also develop media mix. Media mix gives you info such as
____.
media used and its reach & frequency
media used and its rate and no of insertions
mediums used and % of total media budget utilized
ANS 3
Atharva, Head Marketing of one durables making company has developed his digital marketing
strategy. He presents to management how is he going to get better listing on searches made, listing
derived etc. He is proposing which aspect of the digital marketing?
Search Engine Optimization
Social Media Marketing
Pay per click
Content Marketing
ANS 1
Key differentiating feature of ___ is overall all the messages from the organization tell the same
story..
international marketing communication
integrated marketing communication
interrelated marketing communication
involving marketing communication
ANS 2
Marketing must understand the classification of innovation before deciding promotion mix - firm-
oriented, product-oriented, ____, and consumer-oriented
market-oriented
competition-oriented
channel-oriented
category-oriented
Ans 1
During adoption stage, a consumer moves through five stages in arriving at a decision to purchase or
reject a new product, namely 1) Awareness 2) Interest 3) __ 4) Trial and 5) _____.
Assessment
Evaluation
Adoption (or rejection)
Comparisons
ANS 3
Place as one of the P's of ___ is responsible to ensure convenient availability of products at the right
locations at the right time.
Product mix
Marketing Mix
Promotion mix
Distribution mix
ANS 2
Engagement with the product/brand is the result of ___ as under one of the P's of the marketing
mix.
promotion and display
advertisement based call for action
distribution & availability at the right place
distribution and right time of availability
Ans 3
There are four main types of distribution channels namely a) Direct distribution channel b) Indirect
distribution channel c) ___ and d) Reverse distribution channel.
Front end distribution
Back end distribution
Circular distribution
Dual distribution channel
ANS 4
Place decisions are not necessarily based on nature of products - If you choose any general store, it
can be near to consumers, but if you choose exclusive stores, it may be far.
I don’t agree as it is related to nature of products you have
I don’t agree as it depends on nature of product exclusivity.
I don't agree as it depends on sophistication needed at the point of sell
I fully agree with this
Ans 1
When a company may use a combination of direct and indirect selling channels, then company has
adopted which channel approach?.
Reverse distribution
Indirect distribution
Dual distribution
Direct distribution
Ans 3
___ as an intermediary is an independent entity who acts as an extension of the producer by

representing them to the user but never actually gains ownership of the product.
The distributors
The agent
The retailers
The stockist
ANS 2
One of the leading sports goods brand prefers to open specific look and feel of the outlets opened to
offer similar purchase experience & let consumers believe in quality and differentiation. This level of
distribution is classified as __.
Selective
Intensive
Common
Exclusive
ANS 4
Two types of issues influence channel strategy development - a) factors affecting channel choice and
b) distribution intensity. If aspects like established, new entrant, deep pocket or channel sustenance
capability, it can be concluded that __ which is one of three nature of factors are considered.
market factors
product factors
producer factors
performance factors
ANS 2
While taking channel decision, after evaluating benefits available due to channel chosen, marketers
must weigh possible channel cost such as Lost Revenue, ____ and Lost Product Importance.
Lost Communication Control
Affected profitability
Competition defending cost
Promotion scalability cost
Ans 1
As a Head of Marketing for bearings manufacturing company you are aware that bearings selection
and specifications requires technical understanding, customized to suit into automobile
manufacturers requirements. When solution is accepted, it is often sold in large numbers. You have
identified existing channel structure to be faulty. You will recommend ____as a right channel.
Multilayer distribution channel
Joint partnership based distribution channel
Direct Channel
Regional distribution based channel
ANS 3
After the ____ are set, it is appropriate to determine the specific distribution tasks to be performed
in that channel system such as provide delivery within 48 hours after order placement.
distribution objectives
specific performance KPI
specific distribution organization structure
specific terms & conditions
ANS 2
You see so many online spectacle store Lenskart's branded brick and mortar show rooms across
cities offering same variety, and customer service, support. This is due to one of the new age
alternative channel approach. Identify this channel approach.
Licensing
Online
Extension stores
Franchising
ANS 1
____ is a long-term, forward-looking approach to planning with the fundamental goal of achieving a
sustainable competitive advantage.
Marketing objectives
Marketing strategy
Marketing mix
Marketing tactics
Ans 2
The competitive strategy outlines the fundamental basis for obtaining a sustainable competitive
advantage within a category. Firms can normally trace their competitive position to one of three
factors namely __, superior resources and superior position.
superior technology
superior image
superior advantage
superior skills
ANS 4
At Global Components India’s components manufacturing division's Marketing department at their
head office implements strategic initiatives at regular interval. However, each area offices are
independent to use locally viable tactical plans. Result of the above was not encouraging. How will
you make it work?
Continue to adopt a same approach
You emphasis on the interdependence of strategic Marketing plan & tactical plan
You will request area office to co-ordinate with HO Marketing
You will ask all area office to make independent Marketing Plan & Consolidate it
Ans 2
During the development of strategic marketing plan various process specific steps are undertaken.
Under one such step namely where is the organization now, what kind of analysis are carried out
using available methods.
market share-growth matrix
competitive position analysis
situation analysis using any one of the available method
performance analysis to determine effectiveness of past strategies
ANS 3
____ has developed one popular model to help you determine how can you reach where you plan to
reach. This model is popularly known as Growth-Share Matrix. Identify the developer.
GE Market Matrix
Boston Consulting Group
Porter's Five Competitive Forces
ANS 2
Sony TV has introduced new Bravia model with state of the are features including Android
compatibility. Bravia was introduced in a growing interactive TV market and gained high market
share. In a strategic portfolio BCG analysis Tata Tigor can be classified as what?
Star
Question marks
Dogs
Cash cows
ANS 1
Diversification strategy as per the Ansoff's matrix has two different sub-sets of strategies. One of the
sub-stage strategy is known as Vertical diversification. Vertical diversification suggests __.
existing product, in the new market, not new for the organization, having earlier exposure.
new product, in the new market, new for the organization, w/o any earlier exposure.
new product, in the existing market, new for the organization, w/o any earlier exposure.
new product, in the existing market, not new for the organization, and has earlier exposure.
ANS 2
B2C format organizations produces goods for whom?

for the manufacturers of final finished products for end consumers
for the consumption of final end customers
For the commercial units, making raw materials for another unit
ANS 2
Focus of Business to Consumer nature of organization is ____ - right from need understanding, to
product development, channel development, channel development, advertising medium selection
etc.
profit centricity
channel centricity
customer centricity
organization centricit
ANS 3
Tarun, Head-Marketing of an organization resorts to market specific multi-strategy approach – some

markets introduce new products, some markets need to be developed, few markets you must
penetrate. Identify the nature of organization. Identify the format of the organization.
Service marketing
Government organization
Business to Business
Business to Consumer
ANS 4
One of the nature of organization is such where purchases being rational, the only way to maintain
your favourable competitive position is in conveying and demonstrating technology superiority and
innovativeness to overcome price barriers. Identify the nature of organization.
Non-profit organization
ANS 4
DHL as a service provider claims that they provide ontime delivery guarantee. DHL releases
advertisement campaign often with one of the nature of advertisement showing 3-wheelers to giant
jumbo airplane being utilized for pick-up and delivery. By doing so, what is it trying to do from the
service marketing perspective?
demonstrate testimonial to show you are better
make the intangible service delivery part, tangible
create differentiation in the mind of customers
Prepare customers to accept your price rise
ANS 2
One of the format of marketing organization need to constantly plot consumers encounters at the
different touchpoints, understand satisfaction level and make it seamless, trouble free and most
convenient to receive. Identify the nature of organization.
Service marketing
ANS 1
One of the nature of organization is in to direct selling. Such organization are identified by multiple
level based network of individuals and recognised as multi-level marketing organization. Certain
aspects about them differentiates them from the rest of the marketing formats. Identify those
differentiating aspects.
channel format, trade promotion, personal selling
mass channel distributors, personal selling, no intermediaries
network distributor, minimum inventory, sub-distributors appointment
nation wide network, sell to known contacts, expand reach
ANS 3
When any Indian organization wants to become an international marketing organization, they need
to resorts to Collaborations, _____, Take Over, Mergers or Acquisitions.
Channel development
Joint Venture
Be a distributor
Become an affiliate
ANS 2
Affiliate marketing is a collaborative efforts of at lest four parties. One of the parties actually
markets the product using marketing and convince potential customers of the value of the
merchant’s product so that they actually end up buying it. Identify this party in affiliate marketing.
the promoter
the merchant
the publisher
the public
ANS 3
Affiliate marketing is a collaborative efforts of at lest four parties. One of the parties is the one with
whom publisher works and it also serves as a database of lots of products, out of which the affiliate
marketer can choose which to promote. identify the party.
the network
the promoter
the publisher
the partner
ANS 1
Co-branding is a marketing strategy that involves ___ jointly used on single product or service.
alliance with competition brand
strategic alliance of multiple brands
strategic alliance with service provider
strategic alliance between brands having vertical integration
ANS 2
You develop ____ when you can combine the market strength, brand awareness, positive
associations, and cachet of two or more brands to compel consumers to pay a greater premium for
them.
affiliate marketing opportunity
collaborative marketing opportunity
Licensing opportunity
co-branding opportunity
ANS 4
Co-branding are of two types namely __ and Communications based co-branding.

value based co-branding
competitive difference based co-branding
market based co-branding
product-based co-branding
ANS 4
NIRMA makes soaps and detergent power also. NIRMA can co-brand NIRMA DETERGENT, their own
brands. Such product co-branding is identified as _____.
promotional co-branding
parallel co-branding
Company-wide co-branding
ingredients co-branding
ANS 3
Consider that PUPPY-LOVE is India’s largest dog food maker. They have decided to have direct
channel of distribution from their manufacturing unit at Noida. They enter in to an understanding
with Flipkart's logistics service providing arm to ensure time bound delivery of ordered items for one
quarter. This is considered as what types of co-branding?
value chain co-branding
company-wide co-branding
ANS 2
Different ways exists to pull business towards you. One of the bowling alley has worked out with
nearby PVR cinema chain that people buying token worth Rs 500 will get one ticket at 25% discount
and people showcasing their ticket stub at the premise, will also get 25% discount on coupons
purchased. Such marketing concept is recognised as what?
Co-branding
Affiliate marketing
Collaborative marketing
social marketing
ANS 3
One of the marketing concepts focuses on changing or maintaining people’s behaviour. Recognize
the marketing concept.
Co-branding
social marketing
societal marketing
collaborative marketing
ANS 2
Marketing Technology tools are used to streamline marketing processes, collect and analyze data,
and provide various means of reaching and _____engaging with your target audience.
identifying and communicating with target audience
identifying and eliminating unwarranted leads
engaging with your target audience
communicating and compelling your target audience
ANS 3
Technology adoption in marketing is crucial for effectiveness and competitive advantage. One
technology aspect of marketing technology stake is DEM. DEM is __?
the place where your content is aggregated and managed
a direct application management
a derived asset monitoring solution
a digital interface management solution
ANS 1
IT architecture for the marketing automation technology includes Enterprise Data Foundation, Major
Marketing Technology Platforms, _____ and Sales Services, and Major Channels.
Essential Management Modelling Platform
Prototypical Marketing
Major Marketing Channel Management Tools
Marketing Decision Support System
ANS 2
Analytics solution program under marketing technology stake helps you with __.
measure lead generation success rate
measure every marketing programs reach
measure and improve marketing program effectiveness
measure marketing investment mix and business mix
ANS 3
Organization must choose right stake of APPS for their marketing Tech HUB. For this, they must
understand what kind of support needed to be effective and efficient. Organization must first do __.
identifying your Marketing Technology
consulting for Marketing Technology
streamlining your marketing technology
mapping your Marketing Technology
ANS 4
For the marketing management to succeed the three stage process needs to be in place namely
____, implementation and control.
programming
preparing
planning
Pre-estimating
ANS 3
Marketing planning needs to be seen in the context of the different types of planning – Corporate
level, Marketing level, ___.
Competition level
Operations level
Strategic level
Product level
ANS 2
Planning is of two types. In one of the type known as strategic planning which covers __.
next year, immediate marketing objectives and way forward
mid-term, relative position, may include new product
long term period, competitive positioning, includes new product
ANS 3
The marketing planning process involves a series of steps in which key five aspects are probed.
Probe related to one of the aspect namely '__' includes full analysis of the company’s present
situation including doing External and Internal analysis.
Where do we want to be?
where are we now?
How can we get there?
How can we ensure arrival?
ANS 2
Any strategic planning has three core components namely planning, implementation and control.
Under one of these core component namely controlling, three sub-set of tasks needs to be handled
namely measuring performance, ____ and taking corrective action.
comparing performance
providing feedback
diagnosing results
ANS 3
Under 5C's method for identifying your existing status, when you undertake evaluation of one of the
Cs namely Collaborator, you analyze whom?
analyze technology partner, investment partners, banking partners
analyze suppliers, distributors, alliances & partners
analyze logistics partner, warehouse partner, transport partner
analyze strategic partners, consulting partners
ANS 2
SWOT analysis is one of the methods that helps you to understand where are you currently. It’s a
2x2 matrix where in you plot Strengths, Weakness, Opportunities and threats. Out of these 4
quadrants ____ are aspects of external attributes of the environment origin.
Opportunities and threats
Economy & Environment
Weaknesses & threats
Opportunity & weakness
ANS 1
Bonney, Head of Marketing with consumer marketing company is doing external analysis. He wants
to use 'Brand & Category Index' method of analysis. When do you use this method?
identify where your market is good and total market is good
identify where competition category and brand is under performing
identify markets where the category or brand is under-performing
ANS 3
As a VP - Sales & Marketing of Daimler Motors Ltd., you need to brief your light commercial vehicles
division’s team about developing new truck. During ____, you will ask them to focus on single most
important factor namely Competitive advantage.
Competitive environment understanding analysis
Product comparison analysis
Environment comparison analysis
Competitive preference
ANS 1
1. Price is to a product and targeted at the defined customers and
against competitors - the value that is put the figure after margin
2. Pricing is the method of determining the value a producer will get in .-
the exchange of goods and services
3. ‘Pricing’ as a Marketing Mix is critical in any marketing conditions. However, pricing
decision is not having impact on monopolistic competition scenario.- You disagree
with the statement
4. Customers are more willing to buy the necessary products either when they perceive
it as cheaper than what product offers or higher for product perceived as value
product that what actually it is. This pricing strategy is known as -
Psychological pricing
5. Sumit Mathur, newly recruited Head-Marketing of a dining house. He found that his
dining house charges same rate for home delivery as it is at his dining house. He
introduced disposable containers, and added providing disposable plate, spoon and
fork with- customer value
6. The objectives set by the firm also influence the prices of its products. If the firm
adopts skimming objective, then - the price would generally be high
7. Murli who heads marketing function of concentrated soft drink making sachet market
has noticed that . Thus, he proposes to the management that it an opportune
time to increase the prices and increase the revenue. Pricing objective derived from -
competition has reduced, demand has increase
8. Pricing strategies can be divided basically into two methods 1) market based
pricing and 2) competition-based pricing. - cost-based pricing
9. There are different cost based pricing strategies. One method of fixing a price at a level
where
is known as Profit maximizing pricing.- marginal revenue equals marginal
cost
10. Danish is a manufacturer of multiple auto parts for aftersales market supplying it to
garages and local mechanics. He decides that he will add 15% of his manufacturing
cost per piece to the manufacturing cost of his product and derive his final price. He -
Mark-up pricing
11. The demand for a good is said to be elastic when the Price Elasticity of Demand is -
higher than one
12. In service marketing pricing strategies, one of the strategy allows you to price your
service based on to customers. This pricing strategy is recognized as Demand
based pricing.- the perceived value you offer
13. Promotion refers to any type of marketing communication used to inform or of
the relative merits of a product, service, brand or issue- persuade target audiences-
14. Promotions are for specific immediate objectives such as lead generation, first trial,
, loyalty recognition.- repeat purchase drive
15. Promotion is one of the Ps of the marketing mix. The subject of promotion covers
promotion mix, , and promotion plan. - promotion strategies
16. The purpose of one of the types of promotion is to encourage and offer incentives to
distributors to push more of your products in the market. Identify the type of promotion.-
trade promotion
17. Marketing mix of any organization have ‘ ’, which is a blend of several promotional
tools used by the business to create, maintain and increase the demand for goods and
services. - promotion mix
18. There are five elements of any promotion mix namely advertising, , personal
selling, public relations and direct marketing. Identify missing elements.- sales
promotion
19. There are three different types of promotions. Rishikesh, handling new mixer promotion
in which product's key benefit is loudly explained and limited period offer is given to
those who do spot booking by just paying 5% of the cost of product and take - product
promotion
20. Each promotion mix is effective at certain stage. When with customers he can
utilize Advertising for sending non-personal communication.- seller does not have
possibility of direct contact
21. B2B market is complex. For a product like Gen Set you need use personal selling
approach. Personal selling approach includes what?- meet client, conduct
meeting, demonstration, negotiations etc.
22. In every TAJ MAHAL GROUP HOTELS, you get a form in which you need to answer few
questions, write a slogan and provide your personal details to be eligible for mega prizes
offered by the respective advertisers. This form of sales promotion is known as -
23. is a direct communication between seller & buyer either face to
face or through telephone with the intention to make the sale.- Digital marketing
24. Public relations is a because it builds mutually beneficial relationships
between organizations and public. - strategic communication
25. Direct marketing is a promotional mix method that involves presenting information
about your company, product, or service to your target customer without the use of -
26. The broad classification of B2B markets is in three types namely a) b) The
Reseller Market and c) The Government Market.- The Industrial Market
27. Industrial (B2B) promotions needs to achieve certain things different from B2C market.
Amitabh, Head-Marketing ready to launch new industrial conveyor belts, which operates
at 25% faster speed on existing motors installed thus I can move more goods in -
28. Various important points that you need to take care of for effective marketing
communications are a) b) design and c) feedback.- persuasive message
29. Marketing communication has to achieve three core objectives namely convey product,
inform about the product and .- persuade to buy
30. Marketing communication process is well defined. It begins with sender, encoding,
message sending, decoding and receiver. Second lag namely receiver, decoding is
also identified as
. - Receiver's field of experience
31. Madhusudan, Head-Marketing VOLINI India, developed one TV Commercial for new
pain relieving ointment in which they are showing wife getting a backache while working
and husband quickly removed and applies the ointment post which both in a jovial mood
- Designed for target segment
32. The sole purpose of marketing communication is to increase the volume of sales by
ensuring 4 important aspects of mark- reinforcement
33. Advertising media must be carefully evaluated. It pursues media evaluation model
namely AIMRITE, where M stands for - Message
34. Advertising mediums are selected based on two critical parameters, one of the
parameters looks at the number of people you touch with your message. This is
recognized as
? – Reach
35. For managing advertising, there are three core phases that needs to be managed,
namely challenge decoding, , and execution and response monitoring.- strategy
development
36. For managing advertising, there are three core phases that needs to be managed. Post
first core phase of decoding the challenge, you need to get on with the development of
and same must get aligned to marketing goals.- marketing strategies
37. When you develop your media plan, you also develop media mix. Media mix gives you
info such as - mediums used and % of total media budget utilized
38. Atharva, Head Marketing of one durables making company has developed his digital
marketing strategy. He presents to management how is he going to get better listing
on searches made, listing derived etc. He is proposing which aspect of the digital
marketing- Search Engine Optimization
39. Key differentiating feature of is overall all the messages from the
organization tell the same story- integrated marketing communication
40. Marketing must understand the classification of innovation before deciding promotion
mix – firm oriented, product-oriented, , and consumer-oriented- market oriented
41. During adoption stage, a consumer moves through five stages in arriving at a decision
to purchase or reject a new product, namely 1) Awareness 2) Interest 3) 4) Trial and
5)
- Adoption (or rejection)
42. Place as one of the P's of is responsible to ensure convenient
availability of products at the right locations at the right time.- Marketing mix
43. Engagement with the product/brand is the result of as under one of the P's of
the marketing mix.- distribution & availability at the right place
44. There are four main types of distribution channels namely a) Direct distribution
channel b) Indirect distribution channel c) and d) Reverse distribution
channel.- Dual distribution channel
45. Place decisions are not necessarily based on nature of products - If you choose
any general store, it can be near to consumers, but if you choose exclusive stores,
it may be far.- I don’t agree as it is related to nature of products you have
46. When a company may use a combination of direct and indirect selling channels, then
company has adopted which channel approach?- Dual distribution
47. as an intermediary is an independent entity who acts as an extension of
the producer by representing them to the user but never actually gains ownership of
the product.- The agent
48. One of the leading sports goods brand prefers to open specific look and feel of the
outlets opened to offer similar purchase experience & let consumers believe in
quality and differentiation. This level of distribution is classified as - Exclusive
49. Two types of issues influence channel strategy development - a) factors affecting
channel choice and b) distribution intensity. If aspects like established, new entrant, deep
pocket or channel sustenance capability, it can be concluded that - product factors
50. While taking channel decision, after evaluating benefits available due to channel
chosen, marketers must weigh possible channel cost such as Lost Revenue,
and Lost Product Importance. - Lost Communication Control
51. As a Head of Marketing for bearings manufacturing company you are aware that
bearings selection and specifications requires technical understanding, customized
to suit into
automobile manufacturer’s requirements. When solution is accepted, it is often sold-
Direct Channel
52. After the are set, it is appropriate to determine the specific distribution
tasks to be performed in that channel system such as provide delivery within 48 hours
after order placement.- specific performance KPI
53. You see so many online spectacle store Lenskart's branded brick and mortar show
rooms across cities offering same variety, and customer service, support. This is due to
one of the new age alternative channel approach. Identify this channel approach.-
Licensing
54. is a long-term, forward-looking approach to planning with the
fundamental goal of achieving a sustainable competitive advantage.- Marketing
strategy
55. are the planned actions that direct the promotion of a product or
service to influence specific marketing goals.- Marketing tactics
56. The competitive strategy outlines the fundamental basis for obtaining a sustainable
competitive advantage within a category. Firms can normally trace their competitive
position to one of three factors namely , superior resources and superior - superior
skills
57. At Global Components India’s components manufacturing division's Marketing
department at their head office implements strategic initiatives at regular interval.
However, each area offices are independent to use locally viable tactical plans. Result
of the- You emphasis on the interdependence of strategic Marketing plan &
tactical plan
58. During the development of strategic marketing plan various process specific steps are
undertaken. Under one such step namely where is the organization now, what kind of
analysis are carried out using available methods.- situation analysis using any one
of the available method
59. has developed one popular model to help you determine how can you
reach where you plan to reach. This model is popularly known as Growth-Share
Matrix. Identify the developer.- Boston Consulting Group
60. Sony TV has introduced new Bravia model with state of the features including Android
compatibility. Bravia was introduced in a growing interactive TV market and gained high
market share. In a strategic portfolio BCG analysis Tata Tigor can be -Star
61. As per the BCG matrix model, strategically, you are advised to invest more if it’s a new
product with possibility of getting you better market share if your product is identified
as
category of BCG Portfolio Matrix.- Question marks
62. One of the another popular marketing strategy development model helps you
determine how can you reach where you plan to reach by plotting relevant matrix. This
model is popularly also known as?- The Ansoff's model
63. The Ansoff matrix identifies four specific growth strategies namely product
development, market development, market penetration. Identify the 4th growth
strategy.- diversification
64. Diversification strategy as per the Ansoff's matrix has two different sub-sets of strategies.
One of the sub-stage strategy is known as Vertical diversification. Vertical diversification
suggests
- new product, in the new market, new for the organization, w/o
any earlier exposure.
65. describes how a company can develop and pursues competitive advantage
across its chosen market scope.- Porter's competitive forces model
66. One of the warfare terminology based marketing strategy namely flanking attach suggest
that
.- you attack an organization on its weakest front
67. Five constituents of a value chain enables any organization to create value for
customers and competitive advantage for the self. Five constituents include inbound
logistics, ,
outbound logistics, marketing and sales and service.- operations
68. B2C format organizations produces goods for whom?- for the consumption of
final end customers
69. Focus of Business to Consumer nature of organization is - right from
need understanding, to product development, channel development, channel
development, advertising medium selection etc.- customer centricity
70. Tarun, Head-Marketing of an organization resorts to market specific multi-strategy
approach – some markets introduce new products, some markets need to be
developed, few markets you must penetrate. Identify the nature of organization. Identify
the format- Business to Consumer
71. Mayur, Head-Marketing is planning his go to market approach for his new product. He
has identified that he needs to enter petro-chemical, refineries and specialty chemical
units where his product is extensively used. Identify nature of organization - Business
to Business
72. Core objective of such organization format is profit maximization through
market penetration/development. Identify the organization format.- Business
to Consumer
73. One of the nature of organization is such where purchases being rational, the only
way to maintain your favorable competitive position is in conveying and
demonstrating technology superiority and innovativeness to overcome price barriers.
Identify the- Business to Business
74. DHL as a service provider claims that they provide on time delivery guarantee. DHL
releases advertisement campaign often with one of the nature of advertisement
showing 3-wheelers to giant jumbo airplane being utilized for pick-up and delivery. By
doing so- make the intangible service delivery part, tangible
75. One of the format of marketing organization need to constantly plot consumers
encounters at the different touch points, understand satisfaction level and make it
seamless, trouble free and most convenient to receive. Identify the nature of
organization.- Service marketing
76. One of the nature of organization is in to direct selling. Such organization are
identified by multiple level based network of individuals and recognized as multi-
level marketing organization. Certain aspects about them differentiates them from
the rest- network distributor, minimum inventory, sub-distributors
appointment
77. When any Indian organization wants to become an international marketing organization,
they need to resorts to Collaborations, , Take Over, Mergers or Acquisitions.-Joint
Venture
78. Consider that PUPPY-LOVE is India’s largest dog food maker. They have decided to
have direct channel of distribution from their manufacturing unit at Noida. They enter
in to an
understanding with Flip kart’s logistics service providing arm to ensure time- value chain
co- branding
79. Affiliate marketing is a type of in which a business rewards one or
more participating partner for each visitor or customer brought by their own
marketing efforts.- performance-based marketing
80. Affiliate marketing is a collaborative efforts of at lest four parties. One of the parties
actually markets the product using marketing and convince potential customers of
the value of the merchant’s product so that they actually end up buying it. Identify-
the publisher
81. Affiliate marketing is a collaborative efforts of at lest four parties. One of the parties is
the one with whom publisher works and it also serves as a database of lots of products,
out of which the affiliate marketer can choose which to promote. identify - the network
82. Co-branding is a marketing strategy that involves jointly used on single product
or service.- strategic alliance of multiple brands
83. You develop _ when you can combine the market strength, brand
awareness, positive associations, and cachet of two or more brands to compel
consumers to pay a greater premium for them.- co-branding opportunity
84. Co-branding are of two types namely and Communications based co-branding.-
85. NIRMA makes soaps and detergent power also. NIRMA can co-brand NIRMA
DETERGENT, their own brands. Such product co-branding is identified as -
86. Different ways exists to pull business towards you. One of the bowling alley has worked
out with nearby PVR cinema chain that people buying token worth Rs 500 will get one
ticket at 25% discount and people showcasing their ticket stub at the premise, will-
87. One of the marketing concepts focuses on changing or maintaining people’s behavior.
Recognize the marketing concept.- social marketing
88. Any typically consists of a few core Marketing automation tools.-
Technology Stack
89. Marketing Technology tools are used to streamline marketing processes, collect and
analyze data, and provide various means of reaching and engaging with your
target audience.- engaging with your target audience
90. Technology adoption in marketing is crucial for effectiveness and competitive
advantage. One technology aspect of marketing technology stake is DEM. DEM is -
91. 4 IT architecture for the marketing automation technology includes Enterprise Data
Foundation, Major Marketing Technology Platforms, and Sales Services, and Major
Channels. - Prototypical Marketing
92. Analytics solution program under marketing technology stake helps you with -
93. You need to include , technology and relationship in your marketing
automation technology map. – people
94. MarTech HUB technology stack’s functional application can help in areas such as
content creation, , measures and topics planning and AI Data analytics.-
communication and workflow management
95. Organization must choose right stake of APPS for their marketing Tech HUB. For this,
they must understand what kind of support needed to be effective and efficient.
Organization must first do
- mapping your Marketing Technology
96. For the marketing technology adoption, marketing mapping is done. There are two
popular models for the same namely 1) Content Hub model and 2) . Identify the
missing model.- The MarTech Stack by Red Wing Shoe
97. Digital Asset Management (DAM) system of mapping has two streams to divide their
coverage. Two streams are identified as - upstream & downstream
98. For the marketing management to succeed the three stage process needs to be in place
namely
, implementation and control.- planning
99. Marketing planning needs to be seen in the context of the different types of
planning – Corporate level, Marketing level, - Operations level
100. is the process of organizing and defining the marketing aim of a
company and gathering strategies and tactics to achieve them.- Market planning
101. Planning is of two types. In one of the type known as strategic planning which
covers
102. Strategic planning is the managerial process of creating and maintaining a fit
between the organization’s objectives & resources and - evolving market
opportunities
103. The marketing planning process involves a series of steps in which key five
aspects are probed. Probe related to one of the aspect namely ' ' includes full
analysis of the company’s present situation including doing External and Internal
analysis- where are we now?
104. Strategic planning is done at four organizational levels namely a) Corporate b)
Division c) Business and d) - Brand
105. Any strategic planning has three core components namely planning,
implementation and control. Under one of these core component namely controlling,
three sub-set of tasks needs to be handled namely measuring performance, and
taking corrective- diagnosing results
106. Strategic analysis is designed to address the first strategic question, "Where
are we now?" Here environmental analysis namely GAP Analysis is undertaken to
- identify your existing status
107. Under 5C's method for identifying your existing status, when you undertake
evaluation of one of the Cs namely Collaborator, you analyze whom? - analyze
suppliers, distributors, alliances & partners
108. SWOT analysis is one of the methods that helps you to understand where are
you currently. It’s a 2x2 matrix where in you plot Strengths, Weakness, Opportunities
and threats.
Out of these 4 quadrants are aspects of external attributes of the -
Opportunities
and threats
109. Bonney, Head of Marketing with consumer marketing company is doing
external analysis. He wants to use 'Brand & Category Index' method of analysis.
When do you use this method?- identify markets where the category or brand is
under-performing
110. A marketing plan is to help you achieve that vision.- goal-
driven activities and tactics
111. SMART as an approach during marketing planning is for what?- goal setting
112. As a VP - Sales & Marketing of Daimler Motors Ltd., you need to brief your light
commercial vehicles division’s team about developing new truck. During , you
will ask them to focus on single most important factor namely - competitive advantage.
113. As a Brand Manager of Courier Company, You have started writing your first
chapter of
, under this you will cover Environmental, SWOT & Competitive
advantage analysis.- Marketing Plan situation Analysis
114. is through, systematic, periodic evaluation of the goals,
strategies, performance and structure of the marketing organization.-
Marketing audit.
115. Post analysis porters model specific factors, three generic strategies need
to be considered. Under one of the generic strategy the firm selects a narrow target
market and directs its efforts on satisfying the needs of that segment
• Cost leadership
• Differentiation
• Focus
• None of these
116. A ______ contains the company’s value proposition, key brand messaging,
data on target customer demographics.
• Promotion strategy
• Communication strategy
• Marketing strategy
• Brand strategy
117. Under BCG matrix brands are plotted on two factor matrix. Products which
gives you lower market share in a low growing markets are considered as _____ .
• Cash cows
• Dogs
• Stars
• Question marks
118. The ____ actually purchase goods from a producer of a specific company’s
multiple brands and moves them into retail market.
• Retailers
• Stockists
• Distributors
• Wholesalers
119. One of the benefits of utilizing wholesaler/retailers is that they generate

sale as they have stakes in the stock held by them.
• False
• True
120. Availability of railway tickets on internet is a _____ marketing form of utility.

• Time Utility
• Form utility
• Place Utility
• Possession Utility
121. There are four main types of distribution channels. These are direct
distribution, indirect distribution, _____ and reverse distribution.
• Derived distribution
• Dual distribution
• Three parties distribution
• Inter-linked distribution
122. There are numerous roles of channels of distribution. One such role is to
enhance the efficiency. A system of manufacturers directly dealing with consumers
will be less efficient than the _____ involving distribution channel partners.
• Widespread network
• Indirect distribution
• Reverse distribution
• Decentralized system
123. Irrespective of marketing communication methods you use, it will be

challenging to handle the communication clutter, reach the audience to engage and
______ .
• Generate requisite number of leads
• Achieve distinctive competitive differentiation
• Assure return on Marcom investment
• None of these
124. More Marcom activities are needed in the introduction phase of PLC. You
need more Marcom activities to achieve what?
• Build awareness
• Induce trial
• Sustain repeat purchase
• All of these
125. In this 21st century with so much of network connectivity , digitalization, two
additional nods need to be understood during our learning of production mix. Name
these two nods.
• Physical engagement, direct engagement
• Shop engagement, off the shop engagement
• Digital engagement, Retail engagement
• Individual engagement, multi point engagement
126. It has been noticed that price of vegetable oil needs due consideration on
its demand. In the past, whenever prices of vegetable oil is increased revenue of oil
manufacturers has gone down. This price & demand relationship is classified as
____ .
• Unitary elastic
• Unitary inelastic
• Elastic
• Inelastic
127. A pricing strategy considers targeted segments, ability to pay, market

conditions, competitor actions, trade margins and input costs amongst others. It is
targeted ____ .
• Based on marketing objective and profit projection
• At the select geographic location against competition
• To bring more sales and increase revenue
• At the defined customers and against competitors
128. Marketers must weigh the pros and cons of each of the different
promotional mix methods. To help them, one model is developed known as AIDA.
What is the full form?
• Attention-Inducement-Decision-action
• Attention-Interest-Desire- action
• Activity- Information- Decision- action
• None of these
129. There are few disadvantages of collaborative marketing concept. You have
to be willing to compromise to create a campaign that works for both brand, and that
means overcoming some creative conflicts.
• True
• False
130. As a head of marketing for wheel-rims (on which tyres are mounted)
manufacturing company you are aware that wheel rims specifications require
technical understanding, customized to suit into manufacturers requirements and
when accepted often sold in large numbers. You have identified channel structure to
be faulty. You will recommend _______ as a right channel.
• Multiplayer distribution channel
• Joint partnership based distribution channel
• Direct channel
• Regional distribution based channel
131. Popular ‘ Ansoff Strategic windows Matrix help you to determine the
relationship between which parameters?
• Nature of Product- Nature of Market & Suitable Strategy
• Nature of Product- Suitable strategy for specific nature of market
• Nature of Market- Suitable strategy for specific nature of product
• None of these
132. Price inelasticity means what?

• Change in price have a relatively large effect on the quantity of the good
demanded
• Change in price have no effect on the quantity of good demanded
• Changes in price have a relatively small effect on the quantity of the good
demanded
• Small changes in price have a relatively big effect on the quantity of the
good demanded
133. As a brand manager of Cadbury for last 2years you have noticed that
during the sales promotions in the past 5% drop in the prices has yielded 15% jump
in the volume demanded. Thus price & demand relationship is classified as ______ .
• Unitary elastic
• Unitary inelastic
• Elastic
• Inelastic
134. Price elasticity of demand further divided into five different classifications.
Petrol consumption will not fall as much as its increase in its price . This
classification is recognized as what?
• Perfectly inelastic Demand (0)
• Relatively inelastic Demand (<1)
• Relatively elastic Demand (>1)
• Unitary Elasticity Demand (=1)
•
135. Service market being different it also has different pricing strategy
approaches. Under one specific approach you are charged based on the service
provider needs to spend in delivering service to you. This service pricing approach is
identified as _____ .
• Lump-sum fee
• Fee for service
• Intellectual Property Rights charges
• Expert consultation charges
136. In a market with clutter, it is essential to maintain your advertisement level.

Level helps you to remain present in your target audience consideration set. It is
also known as share of voice (SOV) . This advertising budget development method
is known as ______ .
• Marketing relative
• Voice levelling
• Market share matching
• Competition matching
137. Marketing strategies for the service marketing organization , need to handle
intangible aspect of service marketing differently. Not only that, they have larger
marketing mix variables. Tangibalization of intangible service and delivering ______
(feeling when you render service) is crucial for the customer value creation.
• Service exceeding the expectations
• The moment of truth
• Service which creates word of mouth
• Service as tangibalised in your marketing communication
138. Earlier various stakeholders used to communicate what are relevant to

them at any given point of time. Later instead of a functional approach (sales,
marketing or network communication), attempt was made to come together and
prepare a collective communication strategy known as __________ .
• Unified marketing communication
• Intra-functional marketing communication
• Integrated marketing communication
• Impact marketing communication
139. Marketing communication plays different roles. One of the roles in which it
needs to create brand awareness, position the brand appropriately , develop brand
image in the consumer’s mind and promise what you fulfill to strengthen your brand .
Identify the role played.
• Lead to purchase
• Contribute to brand equity
• Delivering voice of the company
• Contribute to consumer equity
140. While taking channel decision, after evaluating benefits available due to
channel chosen , marketers must weigh possible channel cost such as _____ , Lost
communication control and lost product Importance.
• Lost Revenue
• Affected profitability
• Promotion scalability cost
• Competition defending cost
141. Post analysis of porters model specific factors, three generic strategies
need to be considered. Under one of the generic strategy, the firm selects a narrow
target market and direct its efforts on satisfying the needs of that segment.
• Cost leadership
• Focus
• Differentiation
• None of these
142. The goal of the social marketing is to deliver competition- sensitive and
segmented social change programs that are effective , efficient, ________ .
• Equitable and sustainable
• Social influencing and uplifting
• Cause removal and maintenance
• Having mass appeal for impact
143. There are broadly two pricing startegies approach. One of the core pricing
strategy approach is premium positioning. When can you use premium pricing
strategy?
• When your product has multiple variants and with features
• When your product offers unique features and competitive advantage
• When you offer product which offers are unable to offer
• When you are in a monopoly situation
144. GE Mckinsey model dwells upon a market growth attractiveness vis-à-vis-

company strength mix matrix
• Incorrect
• Correct
• Inter-dependent
• Independent
145. HUL has enourmous distribution reach- over 3 lakhs small, medium and
large shops across metro and rural india. If any one has to enter HUL market, they
must face this fact. As per Porter’s competitive forces model, this can be classified
as what?
• Competitive forces
• Supplier power
• Threat of entry
• Treat of substitution
146. The strategic marketing process is a deliberate series of steps to help you
_____ .
• Identify competitive strengths and opportunities to each profit goal
• To leverage competitive strengths and defend against threats
• Identify and reach your marketing goals
• Develop your growth strategies and tactics
147. Strategy formulation is built on “ the match between organizational

resources and skills and _______ and the purposes it wishes to accomplish”
• Environmental opportunities and risks it faces
• Marketing opportunities available
• Consumer needs to fulfill
• Competitive scenario before marketers
148. SKF Bearings is world’s largest widest range bearing producer. Pricing of
SKF bearings are on an average 20-25% higher than another internally no to
bearing manufacturing company. Why they are able to use premium pricing
strategy?
• They are able to convey benefits of their bearings technically better
• They manufacture worlds best bearing
• They are able to offer core advantage of fail safe friction free bearings
• They are able to offer guarantee for fail safe bearings which competition is
not offering
149. There are three points which determines the effectiveness of marketing
communication
• Persuasive message, receiver and medium
• Medium, channel and frequency
• Media, geography and segment reach
• Persuasive message, design and feedbacks
150. At Syska India’s Lighting division Marketing department at their head office
implements strategic initiatives at regular intervals. However, each area officers are
independent to use available budget with them for tactical plans. Result of the above
was not encouraging. As a new V.P Marketing you will ___________.
• Continue to adopt a same approach
• You emphasis on the interdependence of strategic marketing plan &
tactical plan
• You will request area officer to co-ordinate with HO Marketing
• You will ask all area office to make independent Marketing plan &
Consolidate it
151. Today most companies desire to adopt new age marketing technologies.
However, no two companies are alike, so _________ needs is key in bringing
clarity to the process.
• Mapping your marketing technology
• Identifying your marketing technology
• Consulting for marketing technology
• Streamlining your marketing technology
152. Before commencing any creative work in advertising you must define your
advertising objectives. Advertising objective is nothing but
• What type of advertisement which specific message and allocation of
Budget
• Where, when, why & how you wish to advertise
• Specific communication task needed to be accomplished for a specific
target audience within a specified period
• None of these
153. Channel member performs various functions to effect complete final sale.
When they perform the function of prospecting, contacting & communications with
prospective buyers, pitch for sales, it is considered to have performed _____ .
• Logistics function
• Transactional function
• Facilitating function
• Commercial function
154. Marketing segmentation exercise when completed, it helps organization in

___ .
• Product modification
• Resource mobilization
• Developing Competitive advantage
• Developing perceptions
155. You are entering in an market of automatic juicer market. This market has
already certain products but your products has certain programmable features not
present in competition. You will be able to get better price than the other due to
__________ .
• Elastic nature of demand
• Aggressive marketing strategy adopted by you
• Impactful product differentiation offered
• Lower cost of product
156. Mission is defined as an important milestone given to a group of people ,

to ______ to reach the milestone.
• Understand what they are working for to reach at
• Understand competitive scenario to face and achieve expected recognition
• Collectively drive themselves
• Where we are and where we need to reach with pathway given
157. This is one of the two co-branding marketing strategy that involves linking
of multiple brands from different companies in order to jointly communicate and
promote their brands. Eg- Whirlpool washing machine in its advertisement conveys
that Airtel Plus is the best detergent to wash cloth inside the washing machine. This
is considered as what type of co-branding strategy?
• Product –based co-branding
• Value based co-branding
• Communication based co-branding
• Promotion based co-branding
158. Selecting strategic alternative is not as simple as indicated in ‘Ansoff

Matrix’.
• Partially agree
• Disagree
• Fully agree
• Neither agree not disagree
159. When you develop your media plan, it shows which medium you are using
and what % of total budget is spent on it. This is known as ________ .
• Media synergy
• Media mix
• Media matrix
• Media dashboard
160. Any Marcom has to achieve three core objectives namely a) to

communicate b) to compete and c) ________ .
• To generate desire
• To trigger stimuli
• To pursue
• To convince
161. Sales promotion is an ongoing activity in which an incentive is offered to

consumer or channel member to induce the purchase of a particular goods or
services
• You selectively agree with them
• You fully agree with them
• You fully disagree with them
• None of these
162. There are different types of pricing startegies. You have making a industrial
sewing machine with rubberized ring needed to make it run on motor. Rubberized
ring must be replaced after every 5.00 hrs of its use. Here sewing machine and
rubber ring is recognized as what?
• Core product & captive product
• Critical product & consumable product
• Constant product & variable product
• Core product & consumable product
163. Creation of e-payment by banks & service providers is offering __________
type of marketing utility.
• Form utility
• Place utility
• Task utility
• Possession utility
164. In marketing communication process, other than sender, encoding,

message, decoding and receiver, there is one more factor which determines
effectiveness of the message delivered. It is identified as ______ .
• Response
• Feedback
• Noise
• Frequency
165. There are numerous emerging alternative channels available today. One
such is that in which you will be granting a third party (known as the licensee) the
right to utilize your trademarks and , possibly, your business systems and
intellectual property. Identify alternative channel.
• Franchising
• Online
• Licensing
• Extension stores
166. Service marketing is different from product marketing. Service pricing is

determined post considering actual cost like search costs, time cost, convenience
cost & psychological cost. Costs other than actual costs are considered as what?
• Non-monetary costs
• Incidental costs
• Variable costs
• Consumer related costs
167. You are marketing a printer and printing cartridges. In the printer you are
having limited margin due to stiff competition but for the cartridge you are able to
have higher margin as printer once purchased needs cartridges at regular intervals.
This kind of pring strategy is recognized as _________ .
• Product line pricing
• Bundle pricing
• Psychological pricing
• Captive product pricing
168. Honda has newly designed & developed a scooter based on their years of
experience thus knowing customers dislikes, likes & emerging needs. Company
wishes to fix its price. For fixing the pricing , firm wishes to determine ‘ Customer
Value ‘ . What is customer value?
• The ratio of perceived benefits to perceived cost
• The ratio of utility provided over need
• The ratio of increased satisfaction over cost paid
• The ratio of product benefits over product cost.
169. Different products require different types of promotion. Amrit, Head-
Marketing of ALTOS MOTORS manufacturing different kinds of motors. He decides
to now try sales promotion based MarCom to boost his volume. Such products takes
high involvement and rational decisions. Will his different attempt succeed?
• He may not succeed as sales promotion does not work for high
involvement, rational consideration based products.
• He may partially succeed
• He will succeed as it depends on offer he makes
• He will not succeed as sales promotion does not work for high involvement,
rational consideration based products.
170. One of the consultants has asked Tata Chemicals to consider venturing
into disposable syringe market. As a head of marketing you have evaluated this
opportunity using GE Mckinsey model and found that it is a ‘No Growth ‘ opportunity
. Why?
• Industry attractiveness is low & business strength is also low
• Industry attractiveness is high & business strength is medium
• Industry attractiveness is high but business strength is low
• Industry attractiveness is medium & business strength is low
171. Shareholders of Raymonds receives set of entitled number of coupons

indicatives discount available. This Type of sales promotion is known as _____ .
• Product specific sales promotion
• Trade promotion
• Network promotion
• Consumer specific sales promotion
172. One of the external environment analysis is GAP analysis. Gap analysis is
a type of higher order analysis that seeks to identify the difference between the
organizations _______ .
• Current strategy and its desirable strategy
• Current marketing objctives and its desired marketing objectives
• Current market penetration and its desired market penetration
• Current pricing and its expected pricing
173. Nestle has introduced white chocolates. As a part of their sales promotion
they have positioned sampling counter in all general stores. This approach of sales
promotion in restricted to target which type of buyer?
• Competitors consumers
• Price buyers
• Brand switchers
• Loyal consumers
174. Price elasticity of demand is explained as what?

• Gives the negative change in quantity demanded in response to a one
percent change in price
• Gives the percentage change in quantity demanded in response to a one
• Gives the positive change in quantity demanded in response to a one
• Gives the inverse change in quantity demanded in response to a one
175. Some products are more elastic than the others with the price . Price
elasticity is also affected by presence of certain other factors. It can be therefore
managed favourably by taking certain steps. Automobile market is elastic to the
price of the steel. They can manage it favourably by ________ .
• Increasing the product durability
• Develop alternative to steel
• Increasing the price if payable by consumers
• Force manufacturers to reduce price
176. Paresh Punia, Head-Marketing noticed that despite two years after the
product launch, across Andhra Pradesh his market share is low. He decide to
capture more market share by adopting penetration pricing strategy,. Why will he
succeed?
a. Attract more customers and to make the customer switch from current
brands
b. Make non branded product users to start using branded product
c. He is offering reason for consumer to try your product once
d. Consumer are not brand loyal thus they will start using your product
177. Pricing strategies can be divided basically into two method 1) cost-based
pricing and 2) ____.
1. Market based pricing
2. Demand driven pricing
3. Environment driven pricing
4. Competition-based pricing
178. what will you recognize the main function of any promotion mix?
a. Bring shift in target customers’ attitude
b. Convey why your product is better to use
c. Convey why competition product is not good
d. Convey what benefits consumer gets
189. Every Sales promotion need not be successful unless it is not ensured that it is
planned offer taking into consideration the type of buyer it is targeted at.
a. You neither nor disagree
b. You completely disagree
c. You completely agree
d. Subjective hence depends on circumstances
190. Public relation team plays various management centric roles. When PR team to
issue internal guidelines to all employees regarding them deadline with company
information in public but also ensures that they provide timely feeds to all relevant
stakeholders who desires information, then the role they play is recognized as what?
a. Relationship management
b. Issue management
c. Strategic management
d. Communication management
191. Advertising as one of the promotion mix element for B2B can take various
communication angle. In one of the angle, manufacturer of water pump advertises that
his product saves 20% of electricity consumption. Identify the B2B communication
approach taken.
a. Technology highlighter
b. superiority highlighter
c. Rationality highlighter
d. Functionality highlighter
192. Gillette Mach 3 premium has launched a sales promotion programme in which
consumes are offered razor or deodorant at the selling price of Rs. 170/-. Individually,
Mach 3 razor cost Rs.50/- and Gillette doe at Rs.150/-. Such nature of sales promotion
is known as ______.
a. Loyalty approach
b. combo pack offer promotion
c. point of purchase promotion approach
d. rebate approach
193. Green apple is a seasonal product in winter its price remains average due to
abundance of supply. Later during the off-season, its prices ho higher. This price
influencing factor is recognized as ___ factor.
a. product characteristics
b. Demand for the product
c. inelasticity
d. Objective of the firm
194. You have elevated yourself through sheer hard work. Now you are considering
buying branded CROSS PEN instead of ordinary pen. You have considered
relationship between price and self image factors. This relationship and similar such
relationship considered by consumer is considered as _____.
a. Prestige-price relationship of price
b. Price-Capability relationship
c. Dual factors relationship of price
d. Price-utility relationship of price
7. PRICING DECISIONS UNDER MARKETIN

1. Pricing is the method of determining ________ a producer will get in the
exchange of goods and services. (a) The value (b) The cost (c) The fixed cost
(d) The fixed + variable cost
2. Customers are more willing to buy the necessary products at Rs. 99/-
than products costing Rs. 100/-. This pricing strategy is known as _________.
(a) Differential pricing (b) Competition based pricing (c) Psychological pricing
(d) None of the given options
3. The demand for a good is said to be ________ when the Price Elasticity
of Demand is less than one. (a) Elastic (b) Unitary elastics (c) Relatively elastic
(d) Inelastic
4. Many firms keep the price of their goods and services in accordance
with the quality perceived by the customers. This indicates that company’s
pricing objective is ____________. (a) Market skimming (b) Product-quality
leadership (c) Market penetration (d) Survival
5. Base methods to set price is either on cost plus basis or
competitionbased prices. There is one more approach namely ___________.
This approach is based on sizing up each customer’s willingness to pay and
then negotiating a price that the customer will accept. (a) Perceived pricing (b)
Opportunistic pricing (c) Consumer based pricing (d) Market skimming
8. PROMOTION DECISIONS UNDER MARKETING

6. Promotions are not always for the sale – it may be for ________, first
trial, repeat purchase drive, loyalty recognition. (a) Sales sustenance (b) Lead
generation (c) Lead closures (d) Post-purchase influence
7. Promotion refers to any type of _________ used to inform or persuade
target audiences of the relative merits of a product, service, brand or issue. (a)
Sale communication (b) Inducement trigger (c) Compelling advertisement (d)
Marketing communication
8. _________ is used to create a favourable image for itself. The purpose
of this type of promotion is not to sell a specific product but to ‘sell’ the
company to potential consumers. (a) Marketing promotion (b) Sales promotion
(c) Institutional promotion (d) Trade promotion
9. ‘_________’ is the blend of several promotional tools used by the
business to create, maintain and increase the demand for goods and services.
(a) Promotion Mix (b) Marketing mix (c) Product mix (d) Sales mix
10. In a fiercely competitive market, it is required to provide enough
incentives to down-line channel members for purpose like improve their return,
push your product, and to develop sustained brand push and volume sale.
Such type of promotion is known as ___________. (a) Product-specific sales
promotion (b) Push promotion (c) Trade promotion (d) None of the given
options
11. In one of the types of personal selling, person is an active personal
seller with involvement at all the stages of the entire purchase cycle – handling
requisition till finalizing a purchase order. He is identified as ____________. (a)
Order taker (b) Order finalizer (c) Senior manager (d) Sales manager
9. MARKETING COMMUNICATION
12. Various important points that you need to take care of for effective
marketing communications are: (i) persuasive message, (ii) design and (iii)
__________. (a) Offer (b) Call for action (c) Feedback (d) None of the given
options
13. Three core objectives of marketing communications are: (i) to
communicate, (ii) to compete and (iii) to ________. (a) Sell (b) Compare (c)
Call for action (d) Convince
14. Advertising media must be carefully evaluated. It pursues media
evaluation model namely AIMRITE, where R stands for ________. (a) Result
(b) Response (c) Reach (d) Reality
15. Any advertising message structure will have three elements namely (i)
an appeal, (ii) ______ and (iii) slogan. (a) Value proposition (b) An offer (c)
Inducing body copy (d) Call for action
16. In marketing communication, when you achieve co-ordinated
communication concept, you have practiced _________. (a) Interlinked
marketing communication (b) Involving marketing communication (c)
Integrated marketing communication (d) None of the given options
17. The new product’s marketing communication involves two closely
related processes – the _____ and adoption process. (a) Development process
(b) Delivery process (c) Dynamic process (d) Diffusion process
10. DYNAMICS OF PLACE IN MARKETING

18. Place is the element of the marketing mix that ensures that the product
is distributed and made conveniently available for the consumer-at the
_________. (a) Right location at the right price (b) Right location through right
channel (c) Right location through right communication (d) Right location at
the right time
_________. (a) Right location at the right price (b) Right location through
right channel (c) Right location through right communication (d) Right location
at the right time
20. There are four main types of distribution channels namely (i) Direct
distribution channel, (ii) Indirect distribution, (iii) Dual distribution channel and
(iv) __________. (a) Reserve distribution channel (b) Reverse distribution
channel (c) Reproduce distribution channel (d) Forward distribution channel
21. In this type of _________ channel, a company may use a combination
of direct and indirect selling. (a) Dual distribution (b) Reserve distribution (c)
Reverse distribution (d) Forward distribution
22. In managing channel, you need to select distribution strategy which
could be either intensive distribution, _________ distribution and exclusive
distribution. (a) Standalone distribution (b) Spread based distribution (c)
Selective distribution (d) Deep distribution
11. MARKETING STRATEGIES AND TACTICS

23. A __________ refers to a business's overall game plan for reaching
prospective consumers and turning them into customers of the products or
services the business provides. (a) Marketing mix (b) Marketing value (c)
Marketing strategy (d) Marketing promotion
24. The ___________ process is a deliberate series of steps to help you
identify and reach your goals. (a) Product planning (b) Strategic marketing (c)
Competitive planning (d) None of the given options
25. The competitive strategy outlines the fundamental basis for obtaining a
sustainable competitive advantage within a category. Firms can normally trace
their competitive position to one of three factors namely superior skills, superior
resources and __________. (a) Superior position (b) Superior perception (c)
Superior marketing mix (d) Superior technology
26. Boston Consulting Group’s matrix is also known as ___________
matrix. (a) Position-Share matrix (b) Competitive Forces (c) Product-Growth
matrix (d) Growth-Share
27. Three types of generic strategies emerge from the Porter’s model
namely (i) Cost leadership, (ii) Focus and (iii) __________. (a) Product
leadership (b) Value proposition (c) Differentiation (d) Entry level
28. While explaining significance of customer value, Michael Porter states,
that _________ derives from the value a company creates for its customers. (a)
Price Value (b) Competitive advantage (c) Customer advantage (d) Industry
advantage
12. DIFFERENT FORMATS OF MARKETIN

29. Organizations which produce goods for the consumption of final end
customers, adhere to _______ marketing format. (a) Business to business
(B2B) (b) Service marketing (c) Business to consumer (B2C) (d) Online
marketing
30. In any Business to Consumer (B2C) organization, _________ is their
focus right from need understanding (home service support by Urban Clap), to
product development (eyeliner, facial, tissue), deciding it’s positioning (Thanda
matlab Coco-cola). (a) Customer centricity (b) Customer service (c) Customer
delight (d) Customer loyalty
31. Rational, industry or application wide segmentation is followed in any
____________ marketing format. (a) Business to consumers (B2C) (b)
Business to business (B2B) (c) Service marketing (d) Online marketing
32. Core task of service marketer is to make the intangible service delivery
part, _________. (a) Monetary part (b) Experiential (c) Memorable (d) Tangible
33. Core objective of ___________ is volume maximization through
downline network’s distributors number increasing and ensuring stock rotation
and turnover to bring collective benefit. (a) Government organization (b) Non-
profit organization (c) Service marketing organization (d) Multi-level marketing
organization
34. __________ are not driven by profit but to remain dedicated to the
cause, they must generate revenue and achieve the balance between the
cause, the expenditures and funds availability. (a) Service marketing
organizations (b) Non-profit organizations (c) Service marketing organization
(d) Multi-level marketing organization
13. DIFFERENT CONCEPTS OF MARKETING

35. Affiliate marketing is a type of ___________ marketing in which a
business rewards one or more affiliates for each visitor or customer brought by
the affiliate's own marketing efforts. (a) Performance-based (b) Target-based
(c) Volume-based (d) Website-based
36. Co-branding are of two types namely Product-based co-branding
and___________ co-branding. (a) Co-ordination-based (b) Classification-based
(c) Communications-based (d) Categories-based
37. Under collaborative marketing, collaborators will use either joint budget
pulling or __________ approach. (a) Swapping on social media (b) Exchanging
space on each other media (c) Physical store placement (d) Swapping on
reach
38. Philip Kotler identified four categories of products based on long-term
benefits and immediate satisfaction under societal marketing namely (i)
________, (ii) Pleasing products, (iii) Salutary products, and (iv) Desirable
products. (a) Derived products (b) Deficient products (c) Potential products
(d) Loss making products
39. Social marketing helps you to decide: (i) which people to work with, (ii)
________, (iii) How to go about it and (iv) How to measure it. (a) What
limitation to look at (b) Why to influence through social marketing (c) What to
influence (d) What behaviour to influence
14. TECHNOLOGY ADOPTION FOR THE SUCCESSFUL MARKETING

40. Any Technology Stack typically consists of a few core _____. (a) IT
automation tools (b) Marketing management tools (c) Marketing automation
tools (d) Sales automation tools
41. In any marketing automation technology stake, there is DAM, known as
__________ and same is widely considered as the heart of the MarTech Stack.
(a) Dynamic Assessment Monitor (b) Digital Asset Management (c) Digital
Assessment Management (d) None of the given options
42. IT architecture for the marketing automation technology includes
Enterprise Data Foundation, _______, Prototypical Marketing and Sales
Services, and Major Channels. (a) Essential Management Modeling Platform
(b) Major Marketing Channel Management Tools (c) Marketing Decision
Support System (d) Major Marketing Technology Platforms
43. You need to include people, technology and __________ in your
marketing automation technology map. (a) Relationship (b) Reports (c)
Responsibility matrix (d) IT architecture
44. MarTech HUB technology stack’s functional application can help in
areas such as content creation, communication and workflow management,
measures and topics planning and __________. (a) Manual data analytics (b)
AI data analytics (c) Network data analytics (d) Channel data analytics
15. MARKETING PLANNING, PERFORMANCE AND CONTROL

45. The process of marketing management needs attention to three areas
namely (i) Planning, (ii) _________ and (iii) control. (a) Positioning (b)
Promotion (c) Implementation (d) Development
46. Market planning is the process of organizing and defining the ________
of a company and gathering strategies and tactics to achieve them. (a) Market
(b) Marketing aim (c) Marketing plan (d) Market reach
47. The marketing planning process involves a series of four steps in which
aspects like (i) Where are we now?, (ii) Where do we want to be?, (iii) How can
we get there?, (iv) _______ and (v) How can we ensure arrival? (a) Which way
is the best? (b) What we should avoid doing (c) What we should build for
future stability? (d) None of the given options
48. ________ is goal-driven activities and tactics to help you achieve that
vision. (a) The marketing strategy (b) A corporate plan (c) A business plan (d)
A marketing plan
49. The goal is defined as the object of a person's ambition or effort, an aim
or desired result. The goal setting follows a practical way of ______ formation.
(a) S-T-A-R-T (b) S-T-R-A-I-G-H-T (c) S-M-A-R-T (d) None of the given options
1. Penetration pricing strategy is different from the premium pricing strategy.

The main target group is ______.
• Bargain hunting customers
• Price sensitive customers
• Old customers
• Non-users customers
2. Pricing strategy is critical for the marketing objective achievement . Broadly

there are two types of pricing strategies namely__________.
• Core pricing & derived pricing
• Product pricing & market pricing
• Objective pricing & maximization pricing
• Cost based pricing & revenue based pricing
3. There are several challenges in pricing strategy decision. You cant take
strategic decision as you want. Your strategic decision is also governed by other
factors like _____.
• Demand and supply conditions
• Market conditions and competitive pricing
• Government in power
• Legal systems in country
4. Identify top three steps of developing a successful direct marketing

program.
• Determine your target, objectives and design your message
• Decide offer, induce temptation, provide reason to buy
• Digitize message, select platform and ensure payment system
• Develop mailer, select database, send mailer
5. As a smart personal selling sales person mere generation of lead is not

enough but you need to qualify them in terms of their ________
• Interest in the product, willingness to have the product
• Recognised need, requisite authority & availability of resources
• Utility of the product, finance availability
• Getting request for quotation
6. There are three different types of promotions. In one specific types of

promotion display fixtures, demonstrations support , value-added bonuses, and
no-obligation gifts are offered. Recognize the type of promotion.
• Consumer promotion
• Trade promotion
• Institutional promotion
• Product promotion
7. DHL courier wants to buy 100 electric pick up vans over the period of 6
months. Manufacturers are behind them to get the orders. They will offer special
price. The pricing strategy is recognized as what?
• Economy pricing
• Institutional pricing
• Penetration pricing
• Captive product pricing
8. The advertising message often contains a reason for customers to be

interested in the product linked with benefits. This aspects of advertising
message structure is known as ______.
• USP EXPLANATION
• The value proposition
• The inducement
• The rationale
9. Fundamental focus during sales promotion planning needs to take care of

various marketing and brand aspects. Raymonds suiting will perhaps never offer
discounts as segment profile may not like the same. Instead they may offer
FREE DESIGNER CONSULTATION. This sales promotion focus is identified as
what?
• Direct towards right segment
• Ensure call for action
• Ensure repeat purchases
• Compliment strategic marketing planning
10. Unit change in the total cost associated with the one unit change in output
is known as ______.
• Variable cost
• Fixed cost
• Temporary cost
• Marginal cost
11. In one of the advertising budget development method, our focus on

marketing objectives to achieve for which certain activities needed to be
performed, with specific intensity and frequency, identify the advertising budget
development method.
• Objective and tasks method
• % of sale method
• Competition matching
• Past trends
12. As a brand manager of a two wheeler company, you are planning to launch
your new model of scooter. Competition being intense you wish to launch it very
well to get that initial positive launch awareness. You will prefer to approach
whom?
• Event management company
• Advertising agency
• Public relations division
• Corporate communication
13. Mohit, Head marketing is embarking upon developing his MarCom strategy
to launch new product. He plans to communicate product features, benefits and
value to target segment using advertising, direct mailing etc.What is the core
communication objective set?
• To communicate
• To compete
• To convenience
• To generate leads
14. There is a difference between marketing strategies and marketing plan.

The marketing strategy is the “why” you will achieve the goals set forth by the
company:
a. True
b. False
15. You are heading a marketing of SKF bearing. One of the new products
developed by them known as wheel and hub units requires technical data
explanation & shearing with R & D for new cars? If accepted, volumes can be
large. Many of the exiting automobiles companies are working on developing
new modern vehicles. You will prefer to reach them by using which promotion
mix element?
a. Direct marketing
b. Personal selling
c. Publicity
d. Advertising
Q1. You have elevated yourself through sheer hard work . Now you are considering buying
branded Cross Pen instead of ordinary pen . You have considered relationship between price
and self image factors . This relationship and similar such relationship considered by
consumer is considered as
a) Prestige price relationship of price
b) Price capability relationship
c) Dual factor relationship of price
d) Price utility relationship of price
Q2.Pricing strategy is critical for the marketing objective achievement . Broadly there are two
types of pricing strategies namely
a) Core pricing & derived pricing
b) Product Pricing & market pricing
c) Objective pricing & maximization pricing
d) Cost based pricing & revenue based pricing
Q3. A pricing strategy considers targeted segments ability to pay , market conditions
competitor actions trade margins and input costs amongst others . It is targeted
a) based on marketing objective and profit projection
b) at the select geographic location against competition
c) to bring more sales and increase revenue
d) at the defined customers and against competitor
Q4. There maybe many pricing objectives firms may have . Navin Steel is introducing
technology advanced idali cum vada making utensils . In the market no one has similar
product . Thus they decide to charge the price almost double to their cost . This pricing
objective identified as
a) Penetration
b) growth driving
c) skimming
d) maximizing the current profit
Q5. Service marketing is different from product marketing . Service pricing is determined post
considering actual cost and cost like search cost , time cost , convenience cost and
psychological . Cost other thana actual costs are considered as what ?
a) Non-monetary costs
b) Incidental costs
c) Variable costs
d) Consumer related costs
Q6. Skimming is a type of pricing used by companies that have a significant competitive
advantage and which can __ before other competitors begin offering similar products
a) gain maximum acceptance
b) create favourable positioning
c) gain maximum revenue advantage
d) develop brand equity
Q7. There are broadly two pricing strategies approach . one of the core pricing strategy
approach is premium positioning . When can you use premium pricing strategy ?
a) When your product has multiple variants and with features
b) When your product offers unique features and competitive advantage
c) When you offer product which others are unable to offer
d) when you are in a monopoly situation
Q8. Penetration pricing strategy is different from the premium pricing strategy . Essentially
penetration pricing is considered for achieving which objective ?
a) capture more new customers in the existing market
b) capture more new customers in the order markets
c) capture opportunity to gain volume and maximize profit
d) capture market share by entering the market with a low price
Q9. Price is __ which you want customer to pay for getting desired goods with expected level
of quality , consistently year after year
a) A value
b) A cost
c) An exchange worth
d) A transection amount
Q10. There are different types of pricing strategies . you have making a industrial sewing
machine with rubberised ring needed to make it run on motor . Rubberized ring must be
replaced after every 500 hrs of its use . Here sewing machine and rubber ring is recognised
as what ?
a) Core product & captive product
b) Critical product & consumable product
c) Constant product & variable product
d) Core product & consumable product
Q11. There are three different types of promotion. One of the promotion is done in which
product’s key benefit is loudly explained and special offer is given to purchase it within a
limited time frame at a special price . This type of promotion is recognised as?
a) Channel promotion
b) Product promotion
c) Consumer promotion
d) Trade promotion
Q12. Direct marketing is different from other medium as it has three district differentiator.
Identify them.
a) Medium, free gift and exiting offer
b) Creative, offer and promotion tool
c) Medium, offer and call for action
d) Content, creative and cover design
Q13. Ramesh, working with the spare parts distributor of Motherson Sumi, car spare parts
manufacturer. Ramesh is given route plan and visits each sub-distributors once in 4 days. He
collects the order and inform them about new product promotion offer. Ramesh is identified as
________ in the personal selling types.
a) Order consolidator
b) Order distributor
c) Order taker
d) Order finalizer
Q14. In every INDIGO flight, you get a form in which you need to answer few questions. Write
a slogan your personal details is to be eligible for mega prices offered by the respective
advertisers. This form of sales promotion is known as ________?
a) Sweepstakes approach
b) Contests approach
c) Loyalty programme
d) Rebate programme
Q15. Public relations is the practice of ___________ the spread of information between an
individual or an organization and the public.
a) Deliberately managing
b) Smartly managing
c) Utility oriented managing
d) Market oriented managing
Q16. Industrial (B2B) promotions needs to achieve certain things different from B2C market.
Atul, Head-Purchase received a requisition that they need to buy one fire proof motor. Atul
was not aware about who manufactures them. Direct mailer from Prinston Motor lands on his
table, informing him about new fire proof motor. Thus, B2B promotion has achieved what?
a) Introduce company product range
b) Highlighted solution to the problem
c) Enrich information
d) Provide introduction about the company
Q17. In marketing communication process, the spread of a new product from its source to the
public who would like to consume it is recognised as ___________?
a) Adoption process
b) Diffusion process
c) Information process
d) Communication process
Q18. Marketing communication plays different roles. one of the roles in which an organization
can establish a dialogue and build long term relationship with the customers thereby
strengthens customer loyalty, identify the role played.
a) Contribute to customer equity
b) Contribute to brand equity
c) Provide product info
d) Delivering voice of the company
Q19. For managing advertising, there are three core phases that needs to be managed.
Proper challenge decoding only will help you with what?
a) Set right marketing objectives and MarCom mix
b) Develop right MarCom mix and decide mediums
c) Develop communication approach and create advertisements
d) Right marketing communication clue and medium selection
Q20. When you develop your media plan, it shows which medium you are using and what %
of total budget is spent on it. This is known as________.
a) Media synergy
b) Media mix
c) Media matrix
d) Media dashboard
Q21. As a Head of marketing for wheel-rims ( on which tyres are mounted ) manufacturing
company you are aware that wheel rims specifications requires technical understanding,
customized to suit into manufacturers requirements and when accepted often sold in large
numbers, you have identified channel structure to be faulty. You will recommend
___________as a right channel.
a) Multilayer distribution channel
b) Joint partnership based distribution channel
c) Regional distribution based channel
d) Direct channel
Q22. Digital marketers can use numerous tools. One such to the creation and promotion of
content assets for the purpose of generating brand awareness, traffic growth, lead generation.
This digital marketing tool is identified as___________.
a) Web directory listing
b) Search engine optimization
c) Social media marketing
d) Content marketing
Q23. Mohit, Head-Marketing is embarking upon developing his MarCom strategy to launch
new product. He plans to communication objective set?
a) To communicate
b) To compete
c) To convenience
d) To generate leads
Q24. You are a manufacturer of hard boiled confectionary toffee. You do not have required
marketing & financial strength on your own. In this case which channel type will you prefer?
a) You as a manufacturer to direct to retailer
b) You – broker – consumer
c) You – wholesaler – retailer
d) You – intermediary – retailers
Q25. Distribution channel being used as one of P’s of marketing mix has its impact on the
pricing strategy . subject to other conditions being favourable , manufacturers can charge
higher price if the adopted distribution channel is _______.
a) Direct distribution
b) Indirect distribution
c) Dual distribution
d) Reverse distribution
Q26. HDFC bank has started offering ‘Bill Pay’ service to their mobile banking customers thus
what kind of marketing utility have they created?
a) Form utility
b) Place utility
c) Task utility
d) Possession utility
Q27. Most FMCG goods manufacturers prefers distribution so as to have the goods available
just stone throw’s away. This level of distribution classified as________.
a) Selective
b) Intensive
c) Exclusive
d) Common
Q28. Place as one of the P’s of Marketing Mix is responsible to ensure convenient availability
of products________.
a) At the exclusive location near consumers
b) At the right location at the right time
c) In right quantity as per market demand
d) In right product mix in right quantity
Q29. Sony TV’s BRAVIA TV range is usually costly. With onset of competition, sony introduces
institutional pricing wherein they give attractive pricing to the employees of the organizations
who tie up with them. This strategy as per the Ansoff’s matrix is known as what?
a) Market development
b) Product development
c) Market penetration
d) Diversification
Q30. Strategic Window or alternatively growth matrix model is the techniques to identify
opportunities available to the organization, it is also known as________.
a) The BCG model
b) The Ansoff’s model
c) The Prism model
d) The GE matrix model
Q31. Post analysis of porters model specific factors, three generic strategies needs to be
considered. Under one of the generic strategy, the firm targets the mass market and tries to
maintain unique points of product difference perceived as desirable by customers and for
which they are prepared to pay . identify this generic strategy.
a) Cost leadership
b) Differentiation
c) Focus
d) None of these
Q32. Sony TV’s BRAVIA TV range is usually costly. With onset of competition. Sony
introduces institutional pricing wherein they give attractive pricing to the employees of the
organizations who tie up with them. This strategy as per the Ansoff’s matrix is known as what?
a) Market development
b) Product development
c) Market penetration
d) Diversification
Q33. Tata motor has introduced Tigor Passenger Car in a growing passenger car market and
gained high market share. In a strategic portfolio BCG analysis Tata Tigor can be classified as
what?
a) Star
b) Question marks
c) Dogs
d) Cash cows
Q34. Selecting strategic alternative is not as simple as indicated in ‘Ansoff Matrix’.

a) Partially agree
b) Disagree
c) Fully agree
d) Neither agree not disagree
Q35. This is one of the two co-branding marketing strategy that involves linking of multiple
brands from different companies in order to jointly communicate and promote their brands.
Example – whirlpool washing machine in its advertisement conveys that Ariel Plus is the best
detergent to wash cloth inside the washing machine. This is considered as what type of co-
branding strategy?
a) Product based co-branding
b) Value based co-branding
c) Communication based co-branding
d) Promotion based co-branding
Q36. In its pursuit to develop way forward, marketers use different marketing strategy
development models. One of the model namely General Electric model for selecting strategic
alternative is known also as the__________.
a) Market moderation matrix
b) Market attractiveness matrix
c) Product portfolio attractiveness matrix
d) Competition defence matrix
Q37. The strategic marketing process is a deliberate series of steps to help you_______.
a) Identify competitive strengths and opportunities to reach profit goal
b) To leverage competitive strengths and defend against threats
c) Identify and reach your marketing goals
d) Develop your growth strategies and tactics
Q38. Marketing strategy involves selecting & describing________.
a) Competitive difference
b) Threats faced which needs to be attended
c) Brand position
d) Target market
Q39. During the development of strategic marketing plan, competitive strategy outline needs
you to define your competitive position. Three factors analysis will enable you to trace your
competitive position, identify these three factors
a) Superior product, superior processes, superior distribution
b) Superior organization, superior employees, superior channel
c) Superior skills, superior resource, superior position
d) Superior position, superior reach , superior perception
Q40. Selecting strategic alternative is not as simple as indicated in ‘Ansoff Matrix’.

a) Partially agree
b) Disagree
c) Fully agree
d) Neither agree not disagree
Q41. The societal marketing enhances the wellbeing of which two stakeholders?
a) Consumers and channel members
b) National citizens and global citizens
c) Individual consumers and society
d) None of these
Q42. Any strategic planning has three core components namely planning, implementation and
control. Under one of these core component, three sub-set of tasks needs to be handled
namely measuring performance, diagnosing results and taking corrective action. Identify the
core component.
a) Planning
b) Implementation
c) Controlling
d) None of these
Q43. Planning is of two types namely strategic planning and__________.

a) Incidental planning
a) Short-term planning
b) Operational planning
c) Tactical planning
Q44. Companies like HLL, P &G, Dabur, Colgate engaged in rapidly changing market place
has to engage in what?
a) Optional marketing mix development
b) Optimal marketing mix development
c) Strategic planning
d) Cut throat competition
Q45. There are different cost based pricing strategies. Price point of a product fixed at a level
as a result of which when planned sales is achieved, total revenue is equal to total c0st. this
pricing method is known as.
a) Target return pricing
b) Profit maximization pricing
c) Break even pricing
d) Keystonig
Q46. Shareholders of Raymond’s receives set of entitled number of coupons indicatives

discount available. This type of sales promotion is known as _________.
a) Product specific sales promotion
b) Consumer specific sales promotion
c) Trade promotion
d) Network promotion
Q47. Before the commencement of festival season in India, there is not so auspicious phase
in which good items are purchased. As a marketing manager of crockery manufacturer you
have introduced a volume based discount sales promotion scheme for limited period among
your channel members, your objective could be ______?
a) Improve trade relations
b) Gain new distribution
c) Ensure your off take
d) Incentive to trade to promote during festival
Q48. Sales promotion is not simply offering free sample or discount sale. The innovation
exclusivity you create, help you_______.
a) Develop perception and brand position
b) Change behaviour and build brand position
c) Differentiate and maintain the brand position
d) Build preference and initiate action
Q50. ‘Advertising objective’ defines follows a model known as_______.

a) AIDA
b) FAADA
c) DAGMAR
d) ISOMAR
1. In marketing communication for new product after diffusion marketers need to

consider_____process
• Information
• Communication
• Adoption
• Diffusion
2. Big data generated during any digital marketing drive is useful for what?
• Consumer buying behavior
• Digital media selection
• Digital budget re-alignment and effect maximization
• Planning digital word of mouth campaign
3. Digital marketers can use numerous tools in one such tool they can optimizing their
website to rant higher when search is given thereby increasing the amount of organic (or
free) your website receives. This tool is identified as
• Web directory listing
• Paid listing advertising
• Search engine optimization
• Pay per click
4. Spread of ATM facilities by different banks across the city and rural areas is a marketing
form of
• Time utility
• Form utility
• Place utility
• Possession utility
5. The ________ actually purchase goods from a producer in bulk and store them in
warehouses. These goods are resold in smaller amounts
• Retailers
• Stockiest
• Distributors
• Wholesalers
6. Ranveer head marketing of optical frame manufacturers decides to open company own
show rooms to sell spectacle frames and glasses but he decides to use intermediaries to
service class B & class C towns which channel strategy is he adopting?
• Direct distribution
• Indirect distribution
• Dual distribution
• Reverse distribution
7. After the distribution objectives are set, it is appropriate to determine the _________ to
be performed in the that channel system such as provide delivery within 48 hours after
order placement
• Specific performance KPI
• Specific distribution tasks
• Specific distribution organization structure
• Specific terms & conditions
8. One of the benefit of utilizing wholesalers/retailers is that they generate sale as they have
stakes in the stock held by them
• False
• True
9. Five constituents of a value chain enables any organization to create value for customers
and competitive advantage for the self. Five constituents include inbound logistics
operations, ______
• Channel distribution
• Promotion management
• Outbond logistics
• Retail experience
10. During the development of strategic marketing plan various process specific steps are
undertaken in one of the step how should we get there __________ the fundamental
basis for obtaining a sustainable competitive advantages within a category
• The positioning strategy outlines
• The corporate strategy outlines
• The promotion strategy
• The competitive strategy outlines
11. Key elements of marketing strategy are _____
• Vision, mission & strategy
• Marketing objective, strategy & implementation
• Volume plan/sales/initiative/profit likely
• Revenue/market share/profitability
12. The ansoff matrix identifies four specific growth strategies namely product development,
market development and diversification, identify the 4th growth strategy
• Market extension
• Market depth exploration
• Market penetration
• Market movement
13. Strategically, if your product in question mark category of BCG portfolio matrix what it
means to the marketers?
• Invest more if it’s a new product with possibility of getting you better market share
• Invest less but get more market share
• Invest less and maintain lower market share
• None of these
14. Tactical marketing focuses on the details to achieve _________-
• Articulated competitive differentiation
• Developed brand perception
• Set strategic marketing goal
• Planned market share
15. One of the warfare terminology based marketing strategy suggest that you attack a
dominant player on all fronts this strategy known as what?
• Guerrilla attack
• Flanking attack
• Frontal attack
• Encirclement approach
16. The strategic marketing process is a deliberate series of steps to help you_________
• Identify competitive strengths and opportunities to reach profit goal
• To leverage competitive strengths and defend against threats
• Identify and reach your marketing goals
• Develop your growth strategies and tactics
17. There are certain organizations which uses its surplus of the revenues to further achieve
its societal objectives/identify the nature of such an organization
• Online marketing
• Multi-level marketing
• International marketing
• Non-profit organization
18. Focus of which nature of organization is customer centricity right from need understanding
to product development, deciding its positioning, channel development, pricing strategy as
well as nature of promotions, advertising medium selection etc. ?
• Business to business
• Business to consumer
• Multi-level marketing
• Online marketing
19. Affiliate marketing is a collaborative efforts of at least four parties namely the merchant,
the network, ________, and the customer
• The promoter
• The persuader
• The publisher
• The public
20. Social marketing today is far more evolved. Today’s social marketing’s single most pursuit
is what?
• Beyond awareness be in action mode
• Keep doing till change follows
• Sustained social transformation
• Handle social cause with human touch
21. There are different marketing concepts. _________ is marketing concept used to develop
activities aimed at changing or maintaining people’s behavior for the benefit of individuals
and society as a whole
• Social marketing
• Societal marketing
• Non-profit marketing
• Government marketing
22. When co-branding takes place by linking of multiple brands from different companies in
order to create a product indicative of their individual identities-Starbucks & spotify then it
is a ______
• Communication based co-branding
• Product-based co-branding
• Market based co-branding
• Value based co-branding
23. Technology adoption in marketing is crucial for effectiveness and competitive advantage.
One technology aspect considered is the place where you content is aggregated and
managed identify this place solution
• A digital asset management solution
• A direct application management
• A derived asset monitoring solution
• A digital interface management solution
24. The MarTech stack by red wing shoes differentiate vis-à-vis other model as it starts the
maooing by considering_____________
• Customer relationship
• Customer value
• Customer experience
• Customer focus
25. Competitive environment understanding requires inputs & analyses four core areas
namely____
• Competitive rivals, competitor analysis, competitive advantage & competitive
barriers
• Who are your competitors, what do they make, where do they competes and do
they competes
• Competition product, competition network, competition promotion and competition
price
• None of these
26. A strong vision statement typically includes ________ market scope, geographic scope,
vertical scope
• Competitive scope
• Comparative scope
• Product scope
• Segment scope
27. SWOT analysis cover external environment analysis and represented as organization’s
strength and weakness that will either favors or affect the organization
• You agree with this fully
• You do not agree with this at all
• You partially agree with this
• You neither agree, nor disagree
28. Any strategic planning has three core components namely planning, implementation and
control, under one of this core component, three sub-set of tasks needs to be handled
namely measuring performance, diagnosing results and taking corrective action. Identify
the core component
• Planning
• Implementation
• Controlling
• None of these
29. You have taken a company recently. After interacting with the number 0 employees you
formed that they were not aware of what business were they in as a CEO of that new
organization your first task will be to ______
• Make organization’s strategic plan
• Make organization’s marketing plan
• Make people define organization’s goal
• Make organization’s mission statement
30. One of the external environment analysis is GAP analysis is a type of higher order
analysis that seeks to identify the difference between the organizations _________
• Current strategy and its desired strategy
• Current marketing objectives and its desired marketing objectives
• Current market penetration and its desired market penetration
• Current pricing and its expected pricing
31. SWOT analysis is one of the methods that helps you to understand where are you
currently. It’s a 2X2 matrix where in you plot strengths, weakness, opportunities and
threats strengths and weaknesses are aspects which are_______
• Progressive/regressive organizational aspects
• Encouraging/discouraging organization initiative
• Helpful/harmful to achieving marketing objectives
• Listing of aspects linked with every aspects of the organization
32. Social marketing today is far more evolved todays social marketing’s single most pursuit
is what?
• Beyond awareness be in action mode
• Keep doing till change follows
• Sustained social transformation
• Handle social with human touch
33. Before commencing any creative work in advertising you must define your advertising
objective. Advertising objective is nothing but ________
• What type of advertisement which specific message & allocation of budget
• Where, when, why and how you wish to advertise
• Specific communication task needed to be accomplished for a specific target
audience within a specified period
• None of these
34. What will you recognize the main function of any promotion mix?
• Bring shift in target customers attitude
• Convey why your product is better to use
• Convey why competition product is not good
• Convey what benefits consumer gets
35. Identify top three steps of developing a successful direct marketing program
• Determine your target, objectives and design your message
• Decide offer, induce temptation, provide reason to buy
• Digitize message, select platform and ensure payment system
• Develop mailer, select database, send mailer
36. Price is _________ which you want customer to pay for getting desired goods with
expected level of quality, consistently year after year.
• A value
• A cost
• An exchange worth
• A transection amount
37. Pricing strategy is critical for the marketing objective achievement broadly there are two
types of pricing strategies namely _________ strategies
• Core pricing & derived pricing
• Product pricing & market pricing
• Objective pricing & maximization pricing
• Cost based pricing & revenue based pricing
38. Penetration pricing strategy is different from the premium pricing strategy essentially
penetration pricing is considered for achieving which objective?
• Capture more new customers in the existing market
• Capture more new customers in the other markets
• Capture opportunity to gain volume and maximize profit
• Capture market share by entering the market with a low price
MARKETING MANAGEMENT PRACTICE MCQS WITH ANSWERS

Q. Promotion refers to any type of marketing communication used to inform or ___________ of the
relative merits of a product, service, brand or issue.
1) entice customers to buy
2) persuade target audiences
3) inform offer to induce customers
4) compel to act on your offer ANS:
2
Q. Promotions are for specific immediate objectives such as lead generation, first trial, ____________,
loyalty recognition.
1) sales query resolution
2) customer database updation
3) repeat purchase drive
4) seek more sale from existing customers ANS:
3
Q. Promotion is one of the Ps of the marketing mix. The subject of promotion covers promotion mix,
___________, and promotion plan.
1) promotion approach
2) promotion initiatives
3) promotion policy
4) promotion strategies ANS:
4
Q. The purpose of one of the types of promotion is to encourage and offer incentives to distributors to
1) institutional promotion
2) trade promotion
3) marketing promotion
4) sales promotions ANS:
2
Q. Marketing mix of any organization have ‘_________’, which is a blend of several promotional tools
used by the business to create, maintain and increase the demand for goods and services.
1) media mix
2) product mix
3) promotion mix
4) publicity mix ANS:
3
Q. There are five elements of any promotion mix namely advertising, __________, personal selling,
public relations and direct marketing. Identify missing elements.
1) digital promotion
2) sales promotion
3) public relations
4) consumer promotion ANS:
2
Q. There are three different types of promotions. Rishikesh, handling new mixer promotion in which
product's key benefit is loudly explained and limited period offer is given to those who do spot booking
by just paying 5% of the cost of product and take delivery anytime within next 3 months. This type of
promotion is recognised as?
1) product promotion
2) channel promotion
3) consumer promotion
4) trade promotion ANS: 1
Q. Each promotion mix is effective at certain stage. When ____________ with customers he can utilize
1) seller has multiple product mix and wish to reach all consumers in one go
2) seller has high corporate image which can be leveraged to sell
3) seller is keen to target different geographical markets
4) seller does not have possibility of direct contact ANS:
4
Q. B2B market is complex. For a product like GenSet you need use personal selling approach. Personal
1) tendering, negotiation and closure
2) meet client, conduct meeting, demonstration, negotiations etc.
3) deploying salesman from authorized distributor to sell
4) utilizing personal past contacts to sell existing company's products ANS:
2
Q. In every TAJ MAHAL GROUP HOTELS, you get a form in which you need to answer few questions,
write a slogan and provide your personal details to be eligible for mega prizes offered by the respective
advertisers. This form of sales promotion is known as __________?
1) Loyalty programme
2) Contests approach
3) Sweepstakes approach
4) Digital marketing ANS:
3
Q. ‘______________’ is a direct communication between seller & buyer either face to face or through
telephone with the intention to make the sale.
1) Personal selling
2) Direct marketing
3) Sales promotions
2
Q. Public relations is a ____________ because it builds mutually beneficial relationships between

organizations and public.
1) strategic communication
2) organizational communication
3) social communication
4) not for profit ANS:
1
Q. Direct marketing is a promotional mix method that involves presenting information about your
company, product, or service to your target customer without the use of ___________.
1) advertising mediums
2) sales promotion approach
3) any advertising middleman
3
Q. Direct marketing is a promotional mix method that involves presenting information about your
1) advertising mediums
2) sales promotion approach
3) any advertising middleman
2
Q. Industrial (B2B) promotions needs to achieve certain things different from B2C market. Amitabh,
Head-Marketing ready to launch new industrial conveyor belts, which operates at 25% faster speed on
existing motors installed thus I can move more goods in short time and save electricity also. his predict
is well accepted because his B2B promotion would have achieved specific deliverable. What this
deliverable could be?
1) introduce company product range
2) highlighted solution to the problem
3) enrich information
4) fulfilled the target group’s key motive ANS:
4
Q. Various important points that you need to take care of for effective marketing communications are a)
_________ b) design and c) feedback.
1) communication idea
2) persuasive message
3) message delivery
4) message mediums ANS:
2
Q. Marketing communication has to achieve three core objectives namely convey product, inform about
the product and _________.
1) persuade to buy
2) develop desire to acquire
3) persuade to collect info
4) seek demonstration ANS:
1
Q. Marketing communication process is well defined. It begins with sender, encoding, message sending,
decoding and receiver. second lag namely receiver, decoding is also identified as _____________.
1) Receiver's field of experience
2) Sender's field of experience
3) decoding to messaging
4) Receiver's decoding ANS:
1
Q. Marketing communication process is well defined. It begins with sender, encoding, message sending,
1) Receiver's field of experience
2) Sender's field of experience
3) decoding to messaging
4) Receiver's decoding ANS:
4
Q. The sole purpose of marketing communication is to increase the volume of sales by ensuring 4
important aspects of marketing communication namely information, persuasion, ____________ and
credibility is integrated.
1) actionability
2) inducement
3) reinforcement
4) None of the given options ANS:
3
Q. Advertising media must be carefully evaluated. It pursues media evaluation model namely AIMRITE,
where M stands for ________.
1) media
2) message
3) mode
4) maximization ANS:
2
Q. Advertising mediums are selected based on two critical parameters, One of the parameters looks at
the number of people you touch with your message. This is recognized as _____________?
1) Reach
2) Reliability
3) Rationality
4) Relativity ANS:
1
Q. For managing advertising, there are three core phases that needs to be managed, namely challenge
decoding, _________, and execution and response monitoring.
1) defining the objectives
2) strategy development
3) deciding nature of advertising
4) deciding the medium ANS:
2
Q. For managing advertising, there are three core phases that needs to be managed. Post first core
phase of decoding the challenge, you need to get on with the development of ___________ and same
must get aligned to marketing goals.
1) organization goals
2) SBU goals
3) channel goals
4) marketing strategies ANS:
4
Q. When you develop your media plan, you also develop media mix. Media mix gives you info such as
____________.
1) media used and its reach & frequency
2) media used and its rate and no of insertions
3) mediums used and % of total media budget utilized
3
Q. Atharva, Head Marketing of one durables making company has developed his digital marketing
1) Search Engine Optimization
2) Social Media Marketing
3) Pay per click
4) Content Marketing ANS:
1
Q. During adoption stage, a consumer moves through five stages in arriving at a decision to purchase or
reject a new product, namely 1) Awareness 2) Interest 3) ________ 4) Trial and 5) ___________.
1) Assessment
2) Evaluation
3) Adoption (or rejection)
4) Comparisons ANS:
3
Q. Place as one of the P's of ___________ is responsible to ensure convenient availability of products
at the right locations at the right time.
1) Product mix
2) Marketing Mix
3) Promotion mix
4) Distribution mix ANS:
2
Q. Engagement with the product/brand is the result of ___________ as under one of the P's of the
marketing mix.
1) promotion and display
2) advertisement based call for action
3) distribution & availability at the right place
4) distribution ANS:
3
Q. There are four main types of distribution channels namely a) Direct distribution channel b) Indirect
distribution channel c) ___________ and d) Reverse distribution channel.
1) Front end distribution
2) Back end distribution
3) Circular distribution
4) Dual distribution channel ANS:
4
Q. Place decisions are not necessarily based on nature of products - If you choose any general store, it
1) I don’t agree as it is related to nature of products you have
2) I don’t agree as it depends on nature of product exclusivity.
3) I don't agree as it depends on sophistication needed at the point of sell
4) I fully agree with this ANS:
1
Q. When a company may use a combination of direct and indirect selling channels, then company has
1) Reverse distribution
2) Indirect distribution
3) Dual distribution
4) Direct distribution ANS:
3
Q. One of the leading sports goods brand prefers to open specific look and feel of the outlets opened to
distribution is classified as __________.
1) Selective
2) Intensive
3) Common
4) Exclusive ANS:
4
Q. Two types of issues influence channel strategy development - a) factors affecting channel choice and
capability, it can be concluded that __________ which is one of three nature of factors are considered.
1) market factors
2) product factors
3) producer factors
4) performance factors ANS:
2
Q. Two types of issues influence channel strategy development - a) factors affecting channel choice and
1) market factors
2) product factors
3) producer factors
4) performance factors ANS:
1
Q. As a Head of Marketing for bearings manufacturing company you are aware that bearings selection
and specifications requires technical understanding, customized to suit into automobile manufacturers
requirements. When solution is accepted, it is often sold in large numbers. You have identified existing
channel structure to be faulty. You will recommend ________as a right channel.
1) Multilayer distribution channel
2) Joint partnership based distribution channel
3) Direct Channel
4) Regional distribution based channel ANS:
3
Q. ____________ is a long-term, forward-looking approach to planning with the fundamental goal of

achieving a sustainable competitive advantage.
1) Marketing strategies
2) Marketing mix
3) Marketing tactics
4) Marketing planning ANS:
1
Q. The competitive strategy outlines the fundamental basis for obtaining a sustainable competitive
advantage within a category. Firms can normally trace their competitive position to one of three factors
namely __________, superior resources and superior position.
1) superior technology
2) superior image
3) superior advantage
4) superior skills ANS:
4
Q. At Global Components India’s components manufacturing division's Marketing department at their

independent to use locally viable tactical plans. Result of the above was not encouraging. How will you
make it work?
1) Continue to adopt a same approach
2) You emphasis on the interdependence of strategic Marketing plan & tactical plan
3) You will request area office to co-ordinate with HO Marketing
4) You will ask all area office to make independent Marketing Plan & Consolidate it ANS:
2
Q. During the development of strategic marketing plan various process specific steps are undertaken.
Under one such step namely where is the organization now, what kind of analysis are carried out using
available methods.
1) market share-growth matrix
2) competitive position analysis
3) situation analysis using any one of the available method
4) performance analysis to determine effectiveness of past strategies ANS:
3
Q. ____________ has developed one popular model to help you determine how can you reach where
you plan to reach. This model is popularly known as Growth-Share Matrix. Identify the developer.
1) GE Market Matrix
2) Boston Consulting Group
3) Porter's Five Competitive Forces
2
Q. Sony TV has introduced new Bravia model with state of the are features including Android
compatibility. Bravia was introduced in a growing interactive TV market and gained high market share.
In a strategic portfolio BCG analysis Tata Tigor can be classified as what?
1) Star
2) Question marks
3) Dogs
4) Cash cows ANS:
1
Q. As per the BCG matrix model, strategically, you are advised to invest more if it’s a new product with
possibility of getting you better market share if your product is identified as _________category of BCG
Portfolio Matrix.
1) Star
2) Question marks
3) Dogs
4) Cash cows ANS:
2
Q. One of the another popular marketing strategy development model __________ helps you determine
how can you reach where you plan to reach by plotting relevant matrix. This model is popularly also
known as?
1) Boston Consulting Group's model
2) GE Matrix model
3) The Ansoff's model
4) Porter's Competitive forces model ANS:
3
Q. The Ansoff matrix identifies four specific growth strategies namely product development, market
development, market penetration. Identify the 4th growth strategy.
1) disinvestment
2) diversification
3) international marketing
4) integration ANS:
2
Q. Diversification strategy as per the Ansoff's matrix has two different sub-sets of strategies. One of the
sub-stage strategy is known as Vertical diversification. Vertical diversification suggests __________.
1) existing product, in the new market, not new for the organization, having earlier exposure.
2) new product, in the new market, new for the organization, w/o any earlier exposure.
3) new product, in the existing market, new for the organization, w/o any earlier exposure.
4) new product, in the existing market, not new for the organization, and has earlier exposure.
ANS:
2
Q. B2C format organizations produces goods for whom?

1) for the manufacturers of final finished products for end consumers
2) for the consumption of final end customers
3) For the commercial units, making raw materials for another unit
2
Q. Tarun, Head-Marketing of an organization resorts to market specific multi-strategy approach – some

markets introduce new products, some markets need to be developed, few markets you must penetrate.
Identify the nature of organization. Identify the format of the organization.
1) Service marketing
2) Government organization
3) Business to Business
4) Business to Consumer ANS:
4
Q. DHL as a service provider claims that they provide ontime delivery guarantee. DHL releases
1) demonstrate testimonial to show you are better
2) make the intangible service delivery part, tangible
3) create differentiation in the mind of customers
4) Prepare customers to accept your price rise ANS:
2
Q. One of the format of marketing organization need to constantly plot consumers encounters at the
1) Service marketing
2) Government organization
3) Business to Consumer
4) Business to Business ANS:
1
Q. One of the nature of organization is in to direct selling. Such organization are identified by multiple
level based network of individuals and recognised as multi-level marketing organization. Certain aspects
about them differentiates them from the rest of the marketing formats. Identify those differentiating
aspects.
1) channel format, trade promotion, personal selling
2) mass channel distributors, personal selling, no intermediaries
3) network distributor, minimum inventory, sub-distributors appointment
4) nation wide network, sell to known contacts, expand reach ANS:
3
Q. Affiliate marketing is a collaborative efforts of at lest four parties. One of the parties actually markets
the product using marketing and convince potential customers of the value of the merchant’s product so
that they actually end up buying it. Identify this party in affiliate marketing.
1) the promoter
2) the merchant
3) the publisher
4) the public ANS:
2
Q. Affiliate marketing is a collaborative efforts of at lest four parties. One of the parties is the one with
1) the network
2) the promoter
3) the publisher
4) the partner ANS:
1
Q. Technology adoption in marketing is crucial for effectiveness and competitive advantage. One
technology aspect of marketing technology stake is DEM. DEM is __________?
1) the place where your content is aggregated and managed
2) a direct application management
3) a derived asset monitoring solution
4) a digital interface management solution ANS:
1
Q. The marketing planning process involves a series of steps in which key five aspects are probed.
Probe related to one of the aspect namely '__________' includes full analysis of the company’s present
1) Where do we want to be?
2) where are we now?
3) How can we get there?
4) How can we ensure arrival? ANS:
2
Q. Strategic planning is done at four organizational levels namely a) Corporate b) Division c) Business
and d) ________.
1) Brand
2) Market
3) Product
4) Competition ANS:
1
Q. SWOT analysis is one of the methods that helps you to understand where are you currently. It’s a
2x2 matrix where in you plot Strengths, Weakness, Opportunities and threats. Out of these 4 quadrants
____________ are aspects of external attributes of the environment origin.
1) Opportunities and threats
2) Economy & Environment
3) Weaknesses & threats
4) Opportunity & weakness ANS:
1
Q. ___________ is through, systematic, periodic evaluation of the goals, strategies, performance and
structure of the marketing organization.
1) KPI measurement
2) Goal v/s performance analysis
3) Marketing audit
4) Internal audit ANS:
3
6/3/2021 Check Your Answers :: ELearning System
Check Answer Report
Here indicate UserGiven Answer

Light Green color Indicates Correct Answer.
Light Red Color Indicates Wrong Answer.
1 Price is ____________ to a product and targeted at the defined customers and against competitors.
the cost you consider with margin in mind
the value that is put
the figure after margin is considered applied
the rational the value which customer pay
2 Pricing is the method of determining the value a producer will get in ____________.
proportion to quality offered
exchange of level of value created
the exchange of goods and services
his ability to convenience about the price
3 ‘Pricing’ as a Marketing Mix is critical in any marketing conditions. However, pricing decision is not
having impact on monopolistic competition scenario.
You disagree with the statement
You neither agree nor disagree
You partially agree with this
You completely agree with this
4 Customers are more willing to buy the necessary products either when they perceive it as cheaper
than what product offers or higher for product perceived as value product that what actually it is. This
pricing strategy is known as _________.
Differential pricing
Competition based pricing
Psychological pricing
None of the options
5 Sumit Mathur, newly recruited Head-Marketing of a dining house. He found that his dining house
charges same rate for home delivery as it is at his dining house. He introduced disposable containers,
and added providing disposable plate, spoon and fork with
customer value
customer confidence
customer assurance
customer utility
6 The objectives set by the firm also influence the prices of its products. If the firm adopts skimming
elearning.nokomis.in/CheckAnswers.aspx 1/3
objective, then __________.

the price would be perceived to be higher
the price would be equal to highest what competition charges
the price with match with the highest rate you have ever charged
the price would generally be high
7 Murli who heads marketing function of concentrated soft drink making sachet market has noticed
that __________. Thus, he proposes to the management that it a opportune time to increase the prices
and increase the revenue. Pricing objective derived from th
competition has increased, demand has increased
competition has reduced, demand has increased
competition has reduced, demand has reduced
competition has increased, demand has reduced
8 Pricing strategies can be divided basically into two methods 1)market based pricing and 2)
competition-based pricing.
industry based pricing
demand driven pricing
environment driven pricing
cost-based pricing
9 There are different cost based pricing strategies. One method of fixing a price at a level where
_________ is known as Profit maximizing pricing.
marginal revenue equals marginal cost
marginal revenue is higher than marginal cost
marginal cost is higher than marginal revenue
None of the options
10 Danish is a manufacturer of multiple auto parts for aftersales market supplying it to garages and
local mechanics. He decides that he will add 15% of his manufacturing cost per piece to the
manufacturing cost of his product and derive his final price. He
Keystonig
Mark-up pricing
Break-even pricing
Target-return pricing
11 The demand for a good is said to be elastic when the Price Elasticity of Demand is _________.
equal to one
less than one
higher than one
None of the options
12 In service marketing pricing strategies, one of the strategy allows you to price your service based on
__________ to customers. This pricing strategy is recognised as Demand based pricing.
number of customers demanding your services

number of customers willing to wait for your services
Superiority based pricing
the perceived value you offer
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1 Promotion refers to any type of marketing communication used to inform or ___________ of the
entice customers to buy
2 Promotions are for specific immediate objectives such as lead generation, first trial, ____________,
customer database updation
repeat purchase drive
seek more sale from existing customers
3 Promotion is one of the Ps of the marketing mix. The subject of promotion covers promotion mix,
promotion approach
promotion initiatives
promotion policy
promotion strategies
4 The purpose of one of the types of promotion is to encourage and offer incentives to distributors to
trade promotion
marketing promotion
sales promotions
5 Marketing mix of any organization have ‘_________’, which is a blend of several promotional tools
media mix
product mix
promotion mix
publicity mix
6 There are five elements of any promotion mix namely advertising, __________, personal selling,

digital promotion
sales promotion
public relations
consumer promotion
7 There are three different types of promotions. Rishikesh, handling new mixer promotion in which
by just paying 5% of the cost of product and take deli
product promotion
channel promotion
consumer promotion
trade promotion
8 Each promotion mix is effective at certain stage. When ____________ with customers he can utilize
9 B2B market is complex. For a product like GenSet you need use personal selling approach. Personal
tendering, negotiation and closure
meet client, conduct meeting, demonstration, negotiations etc.
deploying salesman from authorized distributor to sell
utilizing personal past contacts to sell existing company's products
10 In every TAJ MAHAL GROUP HOTELS, you get a form in which you need to answer few
questions, write a slogan and provide your personal details to be eligible for mega prizes offered by the
respective advertisers. This form of sales promotion is known as ___
Loyalty programme
Contests approach
Rebate programme
11 ______________ is a direct communication between seller & buyer either face to face or through
Personal selling
Direct marketing
Sales promotions
Digital marketing
12 Public relations is a ____________ because it builds mutually beneficial relationships between


not for profit
13 Direct marketing is a promotional mix method that involves presenting information about your
advertising mediums
sales promotion approach
Digital marketing
14 The broad classification of B2B markets is in three types namely a) ___________ b) The Reseller
Market and c) The Government Market.
The Export Market
The Industrial Market
The inter-state market
The Competitive Market
15 Industrial (B2B) promotions needs to achieve certain things different from B2C market. Amitabh,
existing motors installed thus I can move more goods in sho
enrich information
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1 Various important points that you need to take care of for effective marketing communications are a)
_________ b) design and c) feedback.
communication idea
persuasive message
message delivery
message mediums
2 Marketing communication has to achieve three core objectives namely convey product, inform about
the product and _________.
persuade to buy
seek demonstration
3 Marketing communication process is well defined. It begins with sender, encoding, message sending,
Receiver's field of experience
Sender's field of experience
decoding to messaging
Receiver's decoding
4 Madhusudan, Head-Marketing VOLINI India, developed one TV Commercial for new pain relieving
removed and applies the ointment post which both in a jovial mood pla
5 The sole purpose of marketing communication is to increase the volume of sales by ensuring 4
actionability
inducement
reinforcement
None of the options
6 Advertising media must be carefully evaluated. It pursues media evaluation model namely
AIMRITE, where M stands for ________.
media
message
mode
maximization
7 Advertising mediums are selected based on two critical parameters, One of the parameters looks at
Reach
Reliability
Rationality
Relativity
8 For managing advertising, there are three core phases that needs to be managed, namely challenge
deciding the medium
9 For managing advertising, there are three core phases that needs to be managed. Post first core
organization goals
SBU goals
channel goals
10 When you develop your media plan, you also develop media mix. Media mix gives you info such as
____________.
None of the options
11 Atharva, Head Marketing of one durables making company has developed his digital marketing
derived etc. He is proposing which aspect of the digital marketi
Pay per click
Content Marketing
12 Key differentiating feature of ___________ is overall all the messages from the organization tell the
same story..
13 Marketing must understand the classification of innovation before deciding promotion mix - firm-
oriented, product-oriented, ________, and consumer-oriented
market-oriented
channel-oriented
category-oriented
14 During adoption stage, a consumer moves through five stages in arriving at a decision to purchase
or reject a new product, namely 1) Awareness 2) Interest 3) ________ 4) Trial and 5) ___________.
Assessment
Evaluation
Comparisons
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1 Place as one of the P's of ___________ is responsible to ensure convenient availability of products at
the right locations at the right time.
Product mix
Marketing Mix
Promotion mix
Distribution mix
2 Engagement with the product/brand is the result of ___________ as under one of the P's of the
marketing mix.
3 There are four main types of distribution channels namely a) Direct distribution channel b) Indirect
4 Place decisions are not necessarily based on nature of products - If you choose any general store, it
I fully agree with this
5 When a company may use a combination of direct and indirect selling channels, then company has
Dual distribution
Direct distribution
6 ___________ as an intermediary is an independent entity who acts as an extension of the producer by

representing them to the user but never actually gains ownership of the product.
The distributors
The agent
The retailers
The stockist
7 One of the leading sports goods brand prefers to open specific look and feel of the outlets opened to
distribution is classified as __________.
Selective
Intensive
Common
Exclusive
8 Two types of issues influence channel strategy development - a) factors affecting channel choice and
capability, it can be concluded that __________ wh
market factors
product factors
producer factors
performance factors
9 While taking channel decision, after evaluating benefits available due to channel chosen, marketers
must weigh possible channel cost such as Lost Revenue, ________ and Lost Product Importance.
10 As a Head of Marketing for bearings manufacturing company you are aware that bearings selection
and specifications requires technical understanding, customized to suit into automobile manufacturers
requirements. When solution is accepted, it is often sold
Multilayer distribution channel
Joint partnership based distribution channel
Direct Channel
11 After the ____________ are set, it is appropriate to determine the specific distribution tasks to be
performed in that channel system such as provide delivery within 48 hours after order placement.
12 You see so many online spectacle store Lenskart's branded brick and mortar show rooms across
cities offering same variety, and customer service, support. This is due to one of the new age
alternative channel approach. Identify this channel approach.
Licensing
Online
Extension stores
Franchising
Give Your Comments
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1 ____________ is a long-term, forward-looking approach to planning with the fundamental goal of

achieving a sustainable competitive advantage.
Marketing objectives
Marketing strategy
Marketing mix
Marketing tactics
2 ____________ are the planned actions that direct the promotion of a product or service to influence
specific marketing goals.
Marketing strategies
Marketing mix
Marketing tactics
Marketing planning
3 The competitive strategy outlines the fundamental basis for obtaining a sustainable competitive
advantage within a category. Firms can normally trace their competitive position to one of three
factors namely __________, superior resources and superior pos
superior technology
superior image
superior advantage
superior skills
4 At Global Components India’s components manufacturing division's Marketing department at their

independent to use locally viable tactical plans. Result of the
5 During the development of strategic marketing plan various process specific steps are undertaken.
available methods.
6 ____________ has developed one popular model to help you determine how can you reach where you
plan to reach. This model is popularly known as Growth-Share Matrix. Identify the developer.
GE Market Matrix
None of the options
7 Sony TV has introduced new Bravia model with state of the are features including Android
compatibility. Bravia was introduced in a growing interactive TV market and gained high market
share. In a strategic portfolio BCG analysis Tata Tigor can be classif
Star
Question marks
Dogs
Cash cows
8 As per the BCG matrix model, strategically, you are advised to invest more if it’s a new product with
possibility of getting you better market share if your product is identified as _________category of
BCG Portfolio Matrix.
Star
Question marks
Dogs
Cash cows
9 One of the another popular marketing strategy development model __________ helps you determine
how can you reach where you plan to reach by plotting relevant matrix. This model is popularly also
known as?
Boston Consulting Group's model
GE Matrix model
The Ansoff's model
Porter's Competitive forces model
10 The Ansoff matrix identifies four specific growth strategies namely product development, market
development, market penetration. Identify the 4th growth strategy.
disinvestment
diversification
international marketing
integration
11 Diversification strategy as per the Ansoff's matrix has two different sub-sets of strategies. One of
the sub-stage strategy is known as Vertical diversification. Vertical diversification suggests
__________.
new product, in the existing market, not new for the organization, and has earlier exposure.
12 __________ describes how a company can develop and pursues competitive advantage across its
chosen market scope.
Market position model
Marketing warfare model
GE Matrix model
Porter's competitive forces model
13 One of the warfare terminology based marketing strategy namely flanking attach suggest that
____________.
you attack an organization on its weakest front
you attack an organization on its strongest front
you attack an organization's weakest channel link
you attack an organization's strongest channel link
14 Five constituents of a value chain enables any organization to create value for customers and
competitive advantage for the self. Five constituents include inbound logistics, ___________, outbound
logistics, marketing and sales and service.
movement
warehousing
operations
retail
Give Your Comments
Check Answer Report

1 B2C format organizations produces goods for whom?

for the manufacturers of final finished products for end consumers
for the consumption of final end customers
For the commercial units, making raw materials for another unit
None of the options
2 Focus of Business to Consumer nature of organization is ____________ - right from need

understanding, to product development, channel development, channel development, advertising
medium selection etc.
profit centricity
channel centricity
customer centricity
organization centricity
3 Tarun, Head-Marketing of an organization resorts to market specific multi-strategy approach – some

markets introduce new products, some markets need to be developed, few markets you must penetrate.
Identify the nature of organization. Identify the format
Service marketing
4 Mayur, Head-Marketing is planning his go to market approach for his new product. He has
identified that he needs to enter petro-chemical, refineries and speciality chemical units where his
product is extensively used. Identify nature of organization forma
Service marketing
5 Core objective of such organization format is profit maximization through market

penetration/development. Identify the organization format.
Service marketing
6 One of the nature of organization is such where purchases being rational, the only way to maintain
innovativeness to overcome price barriers. Identify the na
7 DHL as a service provider claims that they provide ontime delivery guarantee. DHL releases
jumbo airplane being utilized for pick-up and delivery. By doing so
8 One of the format of marketing organization need to constantly plot consumers encounters at the
Service marketing
9 One of the nature of organization is in to direct selling. Such organization are identified by multiple
level based network of individuals and recognised as multi-level marketing organization. Certain
aspects about them differentiates them from the rest o
10 When any Indian organization wants to become an international marketing organization, they need
to resorts to Collaborations, _________, Take Over, Mergers or Acquisitions.
Channel development
Joint Venture
Be a distributor
Become an affiliate
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Check Answer Report

1 Consider that PUPPY-LOVE is India’s largest dog food maker. They have decided to have direct
channel of distribution from their manufacturing unit at Noida. They enter in to an understanding
with Flipkart's logistics service providing arm to ensure time b
2 Affiliate marketing is a type of _____________ in which a business rewards one or more

participating partner for each visitor or customer brought by their own marketing efforts.
volume driven reward marketing
lead based reward marketing
digital marketing
performance-based marketing
3 Affiliate marketing is a collaborative efforts of at lest four parties. One of the parties actually
markets the product using marketing and convince potential customers of the value of the merchant’s
product so that they actually end up buying it. Identif
the promoter
the merchant
the publisher
the public
4 Affiliate marketing is a collaborative efforts of at lest four parties. One of the parties is the one with
marketer can choose which to promote. identify
the network
the promoter
the publisher
the partner
5 Co-branding is a marketing strategy that involves ___________ jointly used on single product or
service.
alliance with competition brand
strategic alliance of multiple brands
strategic alliance with service provider
strategic alliance between brands having vertical integration
6 You develop ____________ when you can combine the market strength, brand awareness, positive
them.
7 Co-branding are of two types namely __________ and Communications based co-branding.
value based co-branding
competitive difference based co-branding
market based co-branding
8 NIRMA makes soaps and detergent power also. NIRMA can co-brand NIRMA DETERGENT, their
own brands. Such product co-branding is identified as _________.
parallel co-branding
9 Different ways exists to pull business towards you. One of the bowling alley has worked out with
nearby PVR cinema chain that people buying token worth Rs 500 will get one ticket at 25% discount
and people showcasing their ticket stub at the premise, will
Co-branding
Affiliate marketing
social marketing
10 One of the marketing concepts focuses on changing or maintaining people’s behaviour. Recognize
the marketing concept.
Co-branding
social marketing
societal marketing
collaborative marketing
Give Your Comments
Check Answer Report

1 Any ___________ typically consists of a few core Marketing automation tools.

MarTech programs
IT suite
Marketing Suite
Technology Stack
2 Marketing Technology tools are used to streamline marketing processes, collect and analyze data,
and provide various means of reaching and _________engaging with your target audience.
3 Technology adoption in marketing is crucial for effectiveness and competitive advantage. One
4 IT architecture for the marketing automation technology includes Enterprise Data Foundation,
Major Marketing Technology Platforms, _________ and Sales Services, and Major Channels.
5 Analytics solution program under marketing technology stake helps you with __________.
6 You need to include _________, technology and relationship in your marketing automation
technology map.
people
products
process
plan
7 MarTech HUB technology stack’s functional application can help in areas such as content creation,
____________, measures and topics planning and AI Data analytics.
manual data analytics
communication and workflow management
network data analytics
channel data analytics
8 Organization must choose right stake of APPS for their marketing Tech HUB. For this, they must
understand what kind of support needed to be effective and efficient. Organization must first do
__________.
9 For the marketing technology adoption, marketing mapping is done. There are two popular models
for the same namely 1) Content Hub model and 2) ___________ . Identify the missing model.
The MarTech Stack by Red Wing Shoes
The MarTech Stack by Red Wing Shoes
The MarTech stake by Philip Kotler
None of the options
10 Digital Asset Management (DAM) system of mapping has two streams to divide their coverage. Two
streams are identified as _________.
Vertical stream & Horizontal stream
Functional stream & utility stream
upstream & downstream
Longitudinal streams & latitudinal streams
Give Your Comments
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1 For the marketing management to succeed the three stage process needs to be in place namely
____________, implementation and control.
programming
preparing
planning
Pre-estimating
2 Marketing planning needs to be seen in the context of the different types of planning – Corporate
level, Marketing level, ___________.
Competition level
Operations level
Strategic level
Product level
3 ____________ is the process of organizing and defining the marketing aim of a company and
gathering strategies and tactics to achieve them.
Strategic planning
Corporate planning
Business planning
Market planning
4 Planning is of two types. In one of the type known as strategic planning which covers __________.
next year, immediate marketing objectives and way forward
mid-term, relative position, may include new product
None of the options
5 Strategic planning is the managerial process of creating and maintaining a fit between the
organisation’s objectives & resources and __________.
evolving market opportunities
defending against visible threats
ways to leverage organization's strengths
improving marketing position
6 The marketing planning process involves a series of steps in which key five aspects are probed. Probe
related to one of the aspect namely '__________' includes full analysis of the company’s present
situation including doing External and Internal analysis

where are we now?
7 Strategic planning is done at four organizational levels namely a) Corporate b) Division c) Business
and d) ________.
Brand
Market
Product
Competition
8 Any strategic planning has three core components namely planning, implementation and control.
namely measuring performance, ____________ and taking corrective
comparing performance
providing feedback
diagnosing results
None of the options
9 Strategic analysis is designed to address the first strategic question, "Where are we now?" Here
environmental analysis namely GAP Analysis is undertaken to __________.
determine your strengths and weaknesses
What is hindering your growth
identify your actual weaknesses affecting growth
identify your existing status
10 Under 5C's method for identifying your existing status, when you undertake evaluation of one of
the Cs namely Collaborator, you analyze whom?
analyze technology partner, investment partners, banking partners
analyze suppliers, distributors, alliances & partners
analyze logistics partner, warehouse partner, transport partner
analyze strategic partners, consulting partners
11 SWOT analysis is one of the methods that helps you to understand where are you currently. It’s a
2x2 matrix where in you plot Strengths, Weakness, Opportunities and threats. Out of these 4
quadrants ____________ are aspects of external attributes of the e
12 Bonney, Head of Marketing with consumer marketing company is doing external analysis. He
wants to use 'Brand & Category Index' method of analysis. When do you use this method?
identify where your market is good and total market is good
identify where competition category and brand is under performing
identify markets where the category or brand is under-performing
None of the options
13 A marketing plan is ____________to help you achieve that vision.

marketing approach and tactics
goal-driven activities and tactics
situation analysis and marketing strategies
competition analysis and own marketing strategies
14 SMART as an approach during marketing planning is for what?

objectives setting
performance criteria setting
vision setting
goal setting
15 As a VP - Sales & Marketing of Daimler Motors Ltd., you need to brief your light commercial
vehicles division’s team about developing new truck. During ____________, you will ask them to focus
on single most important factor namely Competitive advantage.
Product comparison analysis
Environment comparison analysis
Competitive preference
16 As a Brand Manger of Courier Company, You have started writing your first chapter of
_____________, under this you will cover Environmental, SWOT & Competitive advantage analysis.
Environmental Scanning
Marketing Plan situation Analysis
Marketing Environment Overview
Business overview
17 ___________ is through, systematic, periodic evaluation of the goals, strategies, performance and
structure of the marketing organization.
KPI measurement
Goal v/s performance analysis
Marketing audit
Internal audit
Give Your Comments
PRICING DECISIONS UNDER MARKETING
Chapter 7
Pricing Decisions Under Marketing
Objectives:
After studying this chapter, you will be able to understand:
• what is price and pricing
• role, objectives and challenges in pricing
• different pricing strategies
• price elasticity of demand
• pricing in institutional, government and in service marketing
Structure:
7.1 Introduction
7.2 Salient Aspects of Pricing
7.3 Factors Influencing Pricing
7.4 Role of Pricing in Marketing
7.5 Pricing Objectives
7.6 Pricing Strategies/Methods
7.7 Price Elasticity of Demand
7.8 Price vis-à-vis Customer Value
7.9 Challenges in Pricing
7.10 Pricing of a Service
7.11 Summary
7.12 Self Assessment Questions
7.13 Multiple Choice Questions
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7.1 INTRODUCTION
I wish to start this chapter by sharing my life’s learning while working at

one of the automotive organization. During the tough competitive market
condition, our premium product variant was not selling as expected. During
the top-level meeting attended by sales and marketing teams along with
very experienced President of the organization, each one of us gave our
versions to convey how difficult it is to sell, and organization must resort to
discounting even on our premium range. He sprang the surprise by telling
us to sell the product FREE from the next day but he wanted100% market
share, obviously because he is giving us free. Each one of us again tried
conveying him that everyone does not need this product, people have their
needs and choices, they value certain things, they wish to convey certain
aspects by acquiring specific product, thus 100% market share is not
possible. He turned back and said, then do what you just said because no
one said products are chosen based on price of it. Discussion was over and
we all realized what we needed to do aggressively.
In other words, pricing is a strategic element of marketing mix because it

is not that people buy goods based on price, but people buy goods based
on value they receive from the product they acquire.
In this chapter, we will study various pricing decisions under marketing

management.
What is Pricing?
Price is the value that is put to a product or service and is the result of a
complex set of calculations, research and understanding and risk-taking
ability. A pricing strategy considers segments, ability to pay, market
conditions, competitor actions, trade margins and input costs, amongst
others. It is targeted at the defined customers and against competitors.
Pricing is the method of determining the value a producer will get in the
exchange of goods and services. Simply, pricing method is used to set the
price of producer’s offerings relevant to both the producer and the
customer.
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Every business operates with the primary objective of earning profits, and
the same can be realized through the ‘Pricing methods’ adopted by the
firms.
While setting the price of a product or service the following points have to
be kept in mind:
a. Nature of the product/service.
b. The price of similar product/service in the market.
c. Target audience, i.e., for whom the product is manufactured (high,
medium or lower class)
d. The cost of production, viz., labour cost, raw material cost, machinery
cost, inventory cost, transit cost, etc.
e. External factors such as Economy, Government policies, Legal issues,
etc.
7.2 SALIENT ASPECTS OF PRICING
What is Price and Pricing?
There is a difference between price and pricing. The price is the amount of
money you want for each product unit. Pricing is the process you need to
go through to figure out what price to attach to each unit.
Pricing, therefore, is a strategic process that you must learn, and use, for
business success.
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Salient Aspects of Pricing in Marketing
a. Price is subject to change and always on trial. Price is subject to change

if insufficient number of customers purchases the product at the original
price of the product.
b. Pricing of the product is something different from its price. In simple

words, pricing is the art of translating into quantitative terms the value
of a product to customers at a point of time. Charge which local ironing
man charges vis-à-vis organized ironing shop chain for delivering
wrinkle free delivery will consider something additional over its price for
the value added.
c. The key to pricing is to build value into the product and price it
accordingly. Prices for the guaranteed delivery will be different from the
normal delivery period.
d. Pricing covers all marketing aspects like the item – goods or services –
mode of payment, methods of distribution, currency used, etc. Price of
interest free loan will be different from the product delivered against
cash.
e. Pricing may carry with it certain benefits to the customers like

guarantee, free delivery, installation, free after-sale servicing and so on.
f. Pricing refers to different prices of a product for different customers and

different prices for the same customer at different times. Prices for
laptop for students is different from prices of laptop for individuals,
business use. Prices for snow-bite proof trekking shoes will be different
during the off-season period vis-à-vis winter when mountains have
snows all over.
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7.3 FACTORS INFLUENCING PRICING
Pricing decision is always not in the hands of the organization as it depends

more on external factors also putting its due pressure on your ability to
decide specific price. Such factors are covered below.
Factors Influencing Pricing
a. Product characteristics: By product characteristics, we mean

numerous factors, i.e., the product life cycle, the product perishability,
the product substitution and demand variability, etc.
b. Product cost: While making marketing strategy, the decision makers

should attempt to optimize the cost. The cost optimization helps in
determining reasonable price which provide equitable return on the cost
employed vis-à-vis suits the customers’ buying power. In order to
optimize the cost of the product, the decision-makers should study
different types of cost, viz., fixed cost, variable cost, and incremental
cost.
c. Objectives of the firm: The objectives set by the firm also influence
the prices of its products. For example, if the firm adopts skimming
objectives, then the price would generally be high. On the contrary, if
the firm adopts the market penetration as its objective, the price would
normally be low.
d. Competitive situation: The magnitude of competition existent in the

market also affects prices. If the marketing manager finds that the
magnitude of competition is high, prices tend to be normally low. On the
contrary, in the situation of low competition, the prices would be higher
due to favourable market environment.
If competition exists between the products of the same line with similar
quality, the marketer should also watch the prices of alternative/
substitute products also while determining the prices of the competitive
product.
e. Demand for the product: The fact remains that among the various
factors, the demand for the product concern is found exceptionally
instrumental in guiding the pricing decisions. As per the law of demand,
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if there is more demand for the product, prices will be high and if there
is low demand for the product, prices will be low. However, essential
goods like salt are exception to this law of demand in affecting the price
of the product.
Besides, seasonal nature of demand can also affect pricing policy by

making it possible to alter prices with the high and low seasons of
demand for the product. For example, with high demand for flowers,
fruits, and sweets during Deepawali prices increase and decrease during
post-Deepawali period.
f. Customers’ behaviour: In making pricing decisions, the study of

customers’ behaviour bears significant relevance. An in-depth study of
the customers’ behaviour would help diagnose the reactions of the
customers regarding a product. While studying consumers, they should
be traced out into specific groups in line with market segmentation, for
example, if the marketing manager has to deal with the industrial
consumer, the pricing decisions would be different. On the other hand, if
she has to deal with the general consumers, the pricing decisions would
be somewhat distinct.
g. Government regulations: While deciding pricing policy, the decision

maker does not need to underestimate the Government regulations
imposed from time to time to control the business activity in the
country. Therefore, due weightage should be assigned to such
regulations like Essential Commodities Act, Monopoly and Restrictive
Trade Practices Act, etc.
Pricing Considerations
The major objective of pricing is the earning of maximum profit. This may
be done by a pricing policy that will attempt to achieve a high return.
Whatever pricing policy is to be decided on, for maximum effectiveness

certain considerations must be considered before prices can be set. The
following important considerations generally included in the pricing of the
product:
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a. Impact of price and output respectively on revenue and cost.

b. The level of output that can yield the maximum consideration towards
overheads and profits.
c. Scope for price adjustment in accordance with changes in cost and
demand conditions of the product.
d. Investigating into future implications, if any, of price change.
e. Recognitions of rivals’ pricing strategies as well as quick reactions.
f. Element of elasticity of demand and revenue.
g. Effects of changes in prices of the product on the entry of the new
enterprises.
7.4 ROLE OF PRICING IN MARKETING
a. Marketing’s view of price: If consumers perceive value (enough

benefits or a good solution for their needs) for the product at that price,
then they are more likely to become customers. Thus, pricing plays the
role of maintaining the value perception in the mind of consumers.
b. The role of price in communicating quality: Price is a significant

factor in determining the perceived value of the product (or brand) to
the consumer. Many consumers equate price with overall product quality
– and a more expensive product is generally perceived to be better.
c. The role of price in communicating value: Consumers become

customers if they perceive good value from a potential purchase.
Consumers will weigh up the potential benefits against the various costs
of acquiring the product. As price is the most significant cost that
consumers will consider, then the setting of price at a certain level will
influence the perception of value.
For example, if a shop offers small pizzas for sale at Rs. 99, then many
consumers may perceive value and buy one. But if the shop was to price
the same small pizzas at Rs. 120, then most consumers would not
perceive value and would probably not make a purchase.
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d. The role of price in profit generation: Price – along with an

appropriate unit margin – are fundamental to delivering the firm’s
overall profitability. Price decisions are very important and need to be
made in conjunction with the expected sales volume in order to get a
good unit margin/sales turnover position.
If the price is too high, then sales will reduce – resulting in less revenue.
If prices are too low, there may not be enough margin to contribute
significant profits.
We have understood that pricing plays an important role in marketing. It

helps consumer to perceive appropriateness of the price by looking at
the customer value and product quality one gets, which at the end,
enables the organization to generate sufficient profit.
7.5 PRICING OBJECTIVES
The objective once set gives the path to the business, i.e., in which
direction to go. The following are the pricing objectives that clears the
purpose for which the business exists;
1. Survival: The foremost Pricing Objective of any firm is to set the price
that is optimum and help the product or service to survive in the
market. Each firm faces the danger of getting ruled out from the market
because of the intense competition, a mature market or change in
customer’s tastes and preferences, etc. Thus, a firm must set the price
covering the fixed and variable cost incurred without adding any profit
margin to it. The survival should be the short-term objective once the
firm gets a hold in the market it must strive for the additional profits.
The New Firms entering into the market also may adopts this type of
pricing objective.
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Fig. 7.1: Different Pricing Objectives
2. Maximizing the current profits: Many firms try to maximize their

current profits by estimating the Demand and Supply of goods and
services in the market. Pricing is done in line with the product’s demand
in the customers and the substitutes available to fulfill that demand.
Higher the demand higher will be the price charged. Seasonal supply
and demand of goods and services (warm cloths, skin care products in
winter) are the best examples that can be quoted here.
3. Capturing huge market share: Many firms charge low prices for their
offerings to capture greater market share. The reason for keeping the
price low is to have an increased sales resulting from the economies of
scale. Higher sales volume lead to lower production cost and increased
profits in the long run. This strategy of keeping the price low is also
known as ‘Market Penetration Pricing’. This pricing method is generally
used when competition is intense, and customers are price sensitive.
FMCG industry is the best example to supplement this.
4. Market skimming: Market skimming means charging a high price for

the product and services offered by the firms which are innovative and
uses modern technology. The prices are comparatively kept high due to
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the high cost of production incurred because of modern technology.

Mobile phones, Electronic Gadgets are the best examples of skimming
pricing that are launched at a very high cost and gets cheaper with the
span of time.
5. Product-quality leadership: Many firms keep the price of their goods

and services in accordance with the quality perceived by the customers.
Generally, the luxury goods create their high quality, taste, and status
image in the minds of customers for which they are willing to pay high
prices. Luxury cars such as BMW, Mercedes, Jaguar, etc. create the high
quality with high-status image among the customers.
Every firm operates with the ultimate objective of earning profits and,
therefore, the price of a product must be set keeping in mind the cost
incurred in its production along with the benefits it offers for which people
are ready to pay extra.
7.6 PRICING STRATEGIES/methods
Base Methods of Pricing
Pricing strategies can be divided into two methods: (1) cost-based pricing
and (2) competition-based pricing.
1. Cost-based Pricing
It takes all the costs of doing business into account to determine the price
of each product unit. Most of your costs should fit into one of two
categories: variable costs and fixed costs. Variable costs increase in direct
proportion to the number of units sold. They include how much you pay for
ingredients, labour, packaging, and sales commissions. Fixed costs remain
fairly constant regardless of how many items you sell. They include
building rent, loan payments, insurance, and utilities. Gather all the
information about your costs associated with a unit of your product,
determine how much profit you will want to make, and then set your price
according.
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Methods Used in Cost-based Pricing

(a) Markup pricing
(b) Key-stoning pricing
(c) Profit maximization pricing
(d) Break-even pricing
(e) Target-return pricing
a. Markup Pricing: Total Cost (Fixed + Variable) + Profit = Price;

Rs. 100 cost/unit + Rs. 20/unit = Price (Rs. 120/unit): You may
alternatively decide certain percentage of mark-up on the cost
necessary to sustain and grow the business. It simplifies calculation if
you have multiple products and you need to decide the prices for all.
Total cost + % Mark-up over cost = Price

Rs. 100 + 20% mark-up (Rs. 20) = Price (Rs. 120)
Rs. 120 + 20% mark-up (Rs. 24) = Price (Rs. 124)
Rs. 132 + 20% mark-up (Rs. 26.40) = Price (Rs. 158.40)
b. Key-stoning Pricing: In this method, price is fixed almost double

(100%) that of cost. Not very practical in today’s competitive market.
c. Profit Maximization Pricing: In this method, price is set depending on

marginal cost. Marginal cost is the incremental cost with the increase in
one-unit production. Though behind this is to cover this cost. Thus, price
is fixed in a way that marginal revenue is equal to marginal cost.
Marginal revenue is the extra revenue associated with the selling an
extra unit of output. It helps you to be competitive in the market or
offer competitive price when customer is talking about increasing order
size or he has already floated a very large size order requirement in the
market.
d. Break-even Pricing: In this approach of pricing, price is derived in a

way to ensure that firm is break-even (that is where total revenue is
equal to the total cost). The price at which this is likely is known as
break-even price.
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Fig. 7.2: Break-even Pricing Method
Break-even point is the sales quantity where the total cost will just be
equal to its total revenue.
i. Each possible price has its own break-even point.
ii. A target profit can be included in your consideration. It may increase
your gestation period.
iii. It can be used for considering price sensitivity and can show you the
effect of price cut.
e. Target-return pricing: A target return is a pricing model that prices a

business based on what an investor would want to make from any
capital invested in the company. Target return is calculated as the
money invested in a venture, plus the profit that the investor wants to
see in return, adjusted for the time value of money.
One of the major difficulties in using this pricing method is that an investor
must pick both a return that can be reasonably attained, as well as a time
period in which the target return can be reached.
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Advantages of Cost-based Pricing Method: Your selling price is backed

up by the actual costs of doing business, not just a best guess. This makes
it easy to calculate a price that accounts for how much money it costs to
do business and what kind of profit you might expect.
Disadvantages of Cost-based Pricing Method: When start-up costs are

included in pricing, new products may not compete well with established
brands. Cost apportionment is not accurate and if you do not produce what
was expected, your cost per unit will be higher, thus your margin gets
adversely impacted.
2. Competition-based Pricing
This method looks at prices charged by the makers of products similar to

yours. Ask yourself, “What will the market bear?” Check the retail locations
where you think you would like to see your product offered and look at
prices for similar products. Then compare your product and the image you
want to project with those of competitors’ products. Different perceptions
of “premium,” “specialty,” and “store brand” bring to mind unique positions
in the market and corresponding price ranges. After this thought process,
set your price accordingly.
Advantages of Competition-based Pricing Method: It takes just a little

research to come up with a price. Pricing new products lower than
competitors’ prices may increase sales.
Disadvantages of Competition-based Pricing Method: All the costs of

producing the product may not be covered. A start-up business has costs
that established manufacturers covered long ago. Offering a low,
introductory price and then raising it later confuses customers. It can’t
handle competitive move post your introduction of the product at the
specific price. It discourages you to add customer value.
There are several factors which need be taken into consideration before
setting up prices, and these factors are influenced by current market
supply and demand, competition levels as well as other political
and economic influences. During the price planning process, your
main focus should lie in finding the right price point where you can
maximize your sales and profits. This usually depends on your
individual marketing goals and objectives.
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Dual Factors Relationship of Price

If you look back in your life, you may have paid higher price for the quality
products (CROSS Pens), product in short supply due to high demand
(Onions and vegetables) and companies which offer customer value
(Eureka Forbes in water purifier range). Thus, during the formation of the
pricing strategy, one need to consider dual factor relationship of price vis-
à-vis quality, demand and customer value. You may add factors you may
think influences price acceptance consideration by your customers. In the
following figure, I have tried giving you some perspective about this dual
factor relationship of pricing.
Fig. 7.3: Dual Factor Relationship of Price Acceptance by the Customers
In dual factor relationship of pricing you can also consider factors such as
market share, brand image, etc. In your pricing process thus, you need to
determine are you a player who needs to work on cost-based pricing or
competition-based pricing. Later, you must identify two factors relationship
which may be needed you to ascertain pricing direction you may take. You
need to limit this two factors consideration to bring clarity and focus.
Post this, you may decide your pricing based on one of the strategies you
may select from the following.
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Pricing Strategies
A pricing strategy considers targeted segments, ability to pay, market

conditions, competitor actions, trade margins and input costs, amongst
others. It is targeted at the defined customers and against
competitors.
We will study pricing strategies under two parts – core pricing strategies
and derived pricing strategies.
Core Pricing Strategies
1. Premium Pricing: It is a type of pricing which involves establishing a

price higher than your competitors to achieve a premium positioning.
You can use this kind of pricing when your product or service presents
some unique features or core advantages, or when the company has a
unique competitive advantage compared to its rivals. Few examples
are Porsche in cars, Gillette in razors and man’s shaving line, Cunard
Cruises in cruise travel, and business class air travel.
2. Penetration Pricing: It is a commonly used pricing method amongst

the various types of pricing. It is designed to capture market share by
entering the market with a low price as compared to the competition. It
can also be done in areas where you continue to have low market share
and you wish to have next attempt at capturing more market share. The
penetration pricing strategy is used in order to attract more customers
and to make the customer switch from current brands existing in the
market. The main target group is price sensitive customers. Once a
market share is captured, the prices are increased by the company.
Many time we see an advertisement ‘Ab sirf 80 rupaiye mein’ are
penetration pricing kind of advertisement.
3. Economy Pricing: This type of pricing takes a very low-cost approach.

Just the bare minimum to keep prices low and attract a specific segment
of the market that is highly price sensitive. Its no-frills price offer.
Margins are wafer thin; overheads like marketing and advertising costs
are kept very low. It attempts to targets the mass market and get high
market share. Budget airlines are famous for keeping their overheads as
low as possible and then giving the consumer a relatively lower price to
fill an aircraft. Super Bazaars do it by offering economy price, but it may
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or may not be of branded products. In fact, most online and big super
bazaars have made it as an annual promotional event like Big-Bazaar’s
Sab se Sastey Din and likewise Flipkart, Amazon’s Big Billion Sale.
4. Skimming Pricing: Skimming is a type of pricing used by companies

that have a significant competitive advantage and which can gain
maximum revenue advantage before other competitors begin offering
similar products or substitutes. It can be the case for innovative
electronics entering the marketing before the products are copied by
close competitors.
After being copied, the product loses its premium value and hence the
price has to be dropped immediately. Thus, to get maximum margins
from their products, innovative companies keep launching new variants
so that customers are always in the discovery phase and paying the
required premium. Also, it satisfies the ego of innovatory category
individuals as well as prestigious conscious individuals who likes to show
what they possess before others can have it. Smartphones
manufacturers, consumer durable makers, IT service providers use this
approach.
Derived Pricing Strategies
1. Product Line Pricing: When there are several items in a product line,
buying a series of them as a package could be cheaper than buying
each separately. For example, Gillette razor, Gillette saving gel, Gillette
aftershave; buy them in one set, it'll be cheaper than buying
individually.
2. Captive Product Pricing: It is a type of pricing which focuses on

captive products accompanying the core products. For example, the ink
for a printer is a captive product where the core product is the printer.
When employing this strategy companies usually put a higher price on
the captive products resulting in increased revenue margins, than on
the core product. Blades are another example – while the razor may be
cheap, the twin blade or Mach 3 blades are not. Once you buy specific
disposable razor, you must continue to buy specific types of blades from
the same manufacturer as other blades will not fit the razor.
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3. Bundle Pricing: Ever hear of the offer of 1 + 1 free? In the

supermarket, when two different products are combined together such
as a razor and the lotion for shaving, and they are offered as a deal,
then we get to experience the bundling type of pricing. This strategy is
mainly used to get rid of excess stocks/old stock. Other examples are in
FMCG – buy mosquito mats, get the machine also at lower cost or
Selling VCDs with Disc players by bundling two products for a price
lower than individually.
4. Psychological Pricing: It is a type of pricing which can be translated

into a small incentive that can make a huge impact psychologically on
customers. Customers are more willing to buy the necessary products at
Rs. 99/- than products costing Rs. 100/-. The difference in price is
actually completely irrelevant. However, it makes a great difference in
the mind of the customers. This strategy can frequently be seen in the
supermarkets and small shops. Bata has been using this pricing for
several years for its shoes.
5. Geographical Pricing: It involves variations of prices depending on the

location where the product and service is being sold and is mostly
influenced by the changes in the currencies (In case of international
marketing) as well as inflation.
6. Neutral Pricing: This type of pricing focuses on keeping the price at

the same level for all four phases of the product life-cycle. However,
with this type of strategy, there is no opportunity to make higher profits
and at the same time, it doesn’t allow for increasing the market share.
Also, when the product declines in turnover, keeping the same price
effects the margins thereby causing an early demise. This pricing is
used very rarely.
7. Optional Product Pricing: Companies will attempt to increase the

amount customers spend once they start to buy. Optional ‘extras’
increase the overall price of the product or service. For example, airlines
will charge for optional extras such as guaranteeing a window seat or
reserving a row of seats next to each other, aisle seats. Again, budget
airlines are prime users of this approach when they charge you extra for
additional luggage or extra legroom. Automobile industry also uses it for
accessories fitting.
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8. Value Pricing: This approach is used where external factors such as

recession or increased competition force companies to provide value
products and services to retain sales, e.g., value meals at McDonald's
and other fast-food restaurants. Value price means that you get great
value for money, i.e., the price that you pay makes you feel that you are
getting a lot of product. In many ways, it is similar to economy pricing.
One must not make the mistake to think that there is added value in
terms of the product or service. Reducing price does not generally
increase value.
Institutional Pricing
Institutional customer either buys in bulk or large order is placed to be

supplied over the year/s as per the given schedule. Institutional customers
also offer you an opportunity to tap the potential business within the
organization. DHL as an institutional customer may wish to order 50 mobile
pick up vans delivered across India within 3 months duration or Colgate
wants 1.00 million plastic toothpaste tubes supplied every month. In other
way, Hindustan Unilever Ltd. in India, where thousands of individuals are
working, wants to offer special price of your cars to their employees, if
they are keen. Here pricing is developed on a case to case basis after
taking into account expected volume, delivery schedule, payment terms,
any post-delivery servicing support needed (When any automobile
company supplies vans to say police force of the state across different
districts, it is expected that warranty support, service support is available
at the nearest dealership. While bulk order gets better rates and offers to
employees may follow normal discount but attractive value-added support
to entice the customer say 3 services free or one-year extended warranty
and likewise.
Institutional customers also order for consumable, parts and accessories.

This is a very competitive pitch and generally multiple bids are invited.
Person with lowest rate gets it.
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Government Pricing
Government also needs to buy products and services as well as

consumables, spares and accessories. Government also has large scale
project execution needs. Government uses public funds and same is under
the eyes of CAG (Comptroller and Auditor General of India) thus they
follow strict guidelines. Generally tendering route is followed. Pricing
remains a constant challenge but following basic understanding will help:
Tender: Different types of tender classifications are there. Broadly, open

tender and limited party tender. In an open tender, same is published and
any manufacturer/service provider can participate. For work value below
certain amount, or limited parties only exists and similar such scenarios,
limited party tenders are invited from the impaneled parties.
Open tenders are generally opened in presence of all bidder and contract
may get awarded to lowest bidder subject to other terms, conditions and
qualifiers. Limited tender will follow certain steps, indicatively as follows:
a. Tender Submission Quote: You need to be careful not to quote too

high or too low. Both natures of tenders are generally kept aside.
b. No Regret Price: If you qualify to further participate in the process,

you are generally asked to submit your final no regret offer. Careful
considerations to different issues needed before you submit your revised
quote.
c. Match the Offer: In certain cases, you may be later informed that they
have a specific best rate and whether we wish to consider giving rate
equal or lower than that rate. You may reject, then you are out of the
race. You may accept it or give lower rates, and, in such case, you may
get the work order.
Thus, government pricing is a complex process which needs different kind

of approach.
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Activity A
List all possible pricing strategy for smartphone during its launch, growth,
maturity and decline stage?
__________________________________________________________
__________________________________________________________
7.7 PRICE ELASTICITY OF DEMAND
What is Price Elasticity?
Price elasticity of demand is a measure to show the responsiveness, or

elasticity, of the quantity demanded of a good or service to increase in its
price when nothing but the price changes. More precisely, it gives the
percentage change in quantity demanded in response to a one percent
change in price.
Price elasticity is measured as either inelastic or elastic. Without getting

into statistical explanations, lets understand that when any change in price
have no impact on its volume demanded, it is said to be set at 1. The
demand for a good is said to be inelastic (or relatively inelastic) when
the PED is less than one (in absolute value): that is, changes in price have
a relatively small effect on the quantity of the good demanded. The
demand for a good is said to be elastic (or relatively elastic) when its
PED is greater than one.
The example for price elasticity is:
Price Elasticity = (% Change in Quantity) / (% Change in Price)
Now, assume that when gas prices increase by 50%, gas purchases fall by
25%. Using the formula above, we can calculate that the price elasticity of
gasoline is:
Price Elasticity = (–25%) / (50%) = –0.50
Thus, we can say that for every percentage point that gas prices increase,
the quantity of gas purchased decreases by half a percentage point.
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Price elasticity of demand further divided into: Perfectly Elastic Demand

(∞); Perfectly Inelastic Demand (0); Relatively Elastic Demand (>
1) – Soft drinks sales does get significantly affected based on its price
increase; Relatively Inelastic Demand (< 1) – Petrol consumption will
not fall as much as its increase in price; Unitary Elasticity Demand (=
1).
All existing radio taxi APP service providers like Uber and OLA, uses this
concept dynamically. Through their strong back-end data backed up by
powerful algorithm-based program, finds out elasticity of demand at any
point of time and accordingly surges their price. They are taking the
advantage because their demand is less elastic during specific time-phase
and thus, increase in their price will not reduce their demand significantly.
Thus, elasticity of your product with its demand vis-à-vis price must be
known to any marketers and must be accounted while framing your pricing
and pricing strategy development.
7.8 PRICE VIS-À-VIS CUSTOMER VALUE
Capturing Value Perceived by Consumers
According to one research by an international firm, most companies either

price their products and services based on their costs, or their competitors.
They fail to capture the value they create for their customers. When asked
how they set their prices, many executives throw their hands up the air
and say, we don’t set the prices, markets do.
Research further established that they are wrong. Markets don’t set prices,
marketers do.
Often, organizations either set price on cost plus basis or competition-

based prices as we have studied earlier. This research gives birth to third
base method of pricing (refer 9.6 section), namely consumer-based
pricing. This approach is based on sizing up each customer’s willingness to
pay and then negotiating a price that the customer will accept.
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Pricing from the Value Perspective
Warren Buffet famously said: “Price is what I pay. Value is what I get”. So
how does value-based pricing work? The next illustration shows the
difference between cost-based and value-based pricing.
Fig. 7.4: Cost-based vis-à-vis Value-based Pricing
The cost-based pricing process begins with the product cost, and a price is
set before taking the value created for customers into consideration. Value-
based pricing process does the opposite. It begins with the customer. A
firm needs a very clear understanding of the customer segments it serves,
and the specific value it creates for each segment. It then prices its product
or service based on the value it creates. When the focus is on value
created, the product cost becomes a secondary consideration.
When a firm has a clear understanding of the value it creates for a

customer, it creates an incentive for the customers to buy its product.
Amazon recently raised the price of its Amazon Prime service by almost
33% annually. Since the price includes unlimited 2-day shipping of orders,
free streaming of 40,000 movies and TV episodes, and free borrowing of
500,000 Kindle book titles, the perceived customer value is much higher
than the price paid.
For marketers, the message is clear. Price your products and services
based on the value you create. Focus on creating significant value by
eliminating customer pains and augmenting customer gains. Then the
value you deliver will create a win-win situation for both you and your
customers.
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Activity B
Put your thoughts on how customer value-based approach can be
developed for the snow-shoes used by the trekking enthusiast.
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
7.9 CHALLENGES IN PRICING
After understanding different aspect of pricing decision under marketing,

we can take an overview of different challenges in pricing.
a. Price Alignment with Product’s Life Cycle Stage: We have studied

four different product life cycle stages namely introduction, growth,
maturity and decline. You may take skimming the market price
approach during the launch phase, later you may follow premium
pricing. At maturity, you may follow penetration pricing, economy
pricing and during decline you may adopt to discount pricing. However,
it is not as straight as mentioned. Market condition, environmental
factors, competitive pricing move may compel you to re-look your
pricing. This may be not as expected by you and may not be in
alignment with your marketing objectives.
b. The Market Growth: Rate of market growth is subject to various

factors. This may not be in alignment with your product’s PLC curve and
thus your decision-making becomes difficult because at times, it may be
even difficult to recover expected margin, thereby impacting your
overall profitability.
c. Erosion in Product Value: The likely rate of erosion in product value

of your pioneer product, determines pricing challenge. This will, in turn,
depend upon the number of competitive products entering the market
and the extent to which they can reproduce the characteristics of your
pioneering products.
d. Post-skimming Strategy: It may be possible for you to skim the

market on launch but when competition starts catching with you, it may
be tricky for you to decide your next pricing strategic move. Reduction
in price may erode your brand equity or you may face stiff competition
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and thus you may need to reduce price more than expected level. If you
have another new product in line, it may be feasible for you to gradually
reduce your earlier premium product by projecting new product as
pioneering product.
e. Pricing during Maturity: Maturity is a stage where it still offers an

opportunity to extend the life of the product. However, at this stage,
more than pricing other strategies work like niche marketing, product
bundling, sales promotion and others. Many factors stretch your pricing
decision much beyond your expectation, thereby overall impacting
f. Pricing during Decline Stage: During the decline stage, various

marketing supports such as advertising, sales promotion, are
withdrawn. Thus, price may be your only option to continue and
maintain product volume in a way that you do not make loss and
recover cost you incur. It may be challenging at times as you may not
have next product in introduction phase, you may not be able to sell
existing product without price below the cost, incurring loss.
7.10 PRICING OF SERVICE
When it comes to service pricing, different perspective is needed. We will

learn about service marketing more in Chapter 12. Briefly, service
marketing is marketing of personal skills (beauty salon), support needed
(training), or services needed (courier, medical) in which consumer
experiences the fulfillment of her need without actual transfer of ownership
(you fulfill your need for courier being delivered but you do not own any
part of courier firm, you get your make-up done but you do not acquire her
skill).
What is Different in Service Pricing?

(a) Customer knowledge of service prices
❖ Differences in service, limits the knowledge about its cost
❖ Service providers knows that there is something different in him/her
due to which they are preferred more over others – medical, legal
services
❖ Needs of each customers differ – hairstylist and hotel rooms
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(b) Non-monetary costs also play key role

❖ Search cost – Searching has his own stress on your consumers. Are
you facilitating your easy search?
❖ Time cost – Time is money for consumers. Time is needed to search
you, call you, come to you, etc. Are you providing some support
which will minimize her time cost – home pick-up of cloths for ironing
or an APP to help reach you promptly.
❖ Convenience cost – Convenience is freedom from doing certain tasks.
If you can offer some kind of convenience it helps you to get more
from the customers – web tracking of courier, web check-in for
flights, mobile banking, food delivery and grocery delivery
❖ Psychological cost – There are certain psychological aspects such as
fear of not doing waxing rightly, fear of choosing right hair transplant
specialist and likewise.
(c) Price as an indicator of service quality
❖ Your price determines your service quality
❖ First-time user by asking others about your service and price, may
still conclude to come to you, thinking that you must be good thus
you are charging higher and others must be benefited in the past
Pricing Base Methods and Difficulties Linked with It
We have earlier studied three different base methods of pricing in section

9.6 above. We list below difficulties you may face, if you use them for
pricing your services.
Base method Difficulties you may encounter

Cost based Costs are difficult to trace in service delivery
Labour more difficult to price than materials
Costs may not equal value
Competition based Small firms may charge too little to be viable
Heterogeneity of services limits comparability
Prices may not reflect customer value
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Demand based Non-monetary cost need to be reflected as value

Service costs information not easily available
Price is not central factor when it comes to skills
Post knowing difficulties associated with above methods, we will study few
pricing strategies prevalent.
Cost-based Pricing
a. Cost-plus Markup: Here, cost for the period is spread among the
expected deliveries. This gives you total cost. Number of expected
deliveries are projected or gives you cost per delivery. Add desired
markup to get your price.
b. Fee for Service: It is charged based on time which a service provider

needs to spend on your work. It’s a time cost, which covers her costs
and gives him profit – consultants, CAs, etc.
Competition-based Pricing
a. Prices here are fixed after looking at the service basket of other
competitors – gymnasiums, airlines, etc.
b. It is possible to do, when services are standard – courier, computer

classes, driving classes, etc.
c. Approach such as: (i) Going rate pricing and (ii) Price signaling.
i. Going rate pricing, etc. – You also charge the most prevalent price in
the market and get desired profit by limiting cost
ii. Price signaling – It happens in a very intensely competing service

market – .airlines, tourist cab aggregators, etc.. If anyone of the
competition changes the price, others too will quickly study its impact
on their revenue and align their price accordingly.
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Demand-based Pricing
a. It is based on the perceived value offered by the service provider.
b. Perceived value could be:

i. Value is low price for me – Here, customer is looking for low cost
price-based solution. Thus, you may use either penetration pricing,
discounting, low perceived value pricing Rs. 99/-, Rs. 999/-, etc.
ii. Value is what I want in a service – Looking for best as expected by
the user. Thus, you may peruse price skimming, or prestige pricing
approach.
iii. Value is quality I get for that price – Here, user of service is more in
commanding position, especially highly competitive service industry
like local couriers. You may use ‘Value Pricing’ approach by making
user realize that she is now getting same service at the lower price or
she is getting additional service at the same price.
iv. Value is what I get for what I give – Here, marketers understand that
despite competition, she can extract value for what she is providing.
Thus, you may use pricing strategies like price bundling,
complimentary pricing and result based pricing (lawyers).
In this section, we have covered various pricing approach to price services.
Activity C
List two service industry examples of cost-plus, competition based and

demand-based pricing and explain your point of view about your classifying
it in a specific category.
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
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7.11 SUMMARY
Price is the value that is put to a product or service and is the result of a
complex set of calculations, research and understanding and risk-taking
ability. Pricing is the method of determining the value a producer will get in
the exchange of goods and services. A pricing strategy considers
segments, ability to pay, market conditions, competitor actions, trade
margins and input costs, amongst others. It is targeted at the defined
customers and against competitors.
Certain factors affect your ability to price such as product characteristics,

product cost, objectives of the firm, competitive situation, demand for the
product and customers’ behaviour. Role of price is to communicate quality,
value, offer inducement to use and generate revenue and profit as per the
Pricing objective could be survival, maximizing the current profits,

capturing huge market share, market skimming, and establish product-
quality leadership.
We have understood three base methods of pricing namely(1) cost-based

pricing (2) competition-based pricing and (3) Demand-based or value-
based pricing. We have studied core pricing strategies namely Premium
pricing, Penetration pricing, Economy pricing and Skimming pricing. We
have studied optional pricing strategies namely Product line pricing,
Captive product pricing, Bundle pricing, Psychological pricing, Geographical
pricing, Neutral pricing, Optional product pricing and Value pricing. We
have also studied institutional and government pricing as well as pricing of
services.
We have also studied price elasticity of demand which is a measure that

gives the percentage change in quantity demanded in response to a one
percent change in price. Price elasticity of demand further divided into
Perfectly Elastic Demand (∞), Perfectly Inelastic Demand (0), Relatively
Elastic Demand (> 1), Relatively Inelastic Demand (< 1) and Unitary
Elasticity Demand (= 1).
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We have understood significance of creating value and developing your

price to extract maximum out of customers who feel you are delivering the
value promised. We also considered few challenges being faced in deciding
your price.
7.12 SELF ASSESSMENT QUESTIONS

1. What is pricing? Explain some of its salient features also.
2. What role does price play in marketing?
3. List four core pricing strategies and explain any two with example.
4. List non-core pricing strategies and explain any two briefly with
example.
5. Explain the concept of price elasticity of demand.
6. Explain pricing approach in service marketing.
7.13 MULTIPLE CHOICE QUESTIONS
1. Pricing is the method of determining ________ a producer will get in

the exchange of goods and services.
(a) The value
(b) The cost
(c) The fixed cost
(d) The fixed + variable cost
2. Customers are more willing to buy the necessary products at Rs. 99/-
than products costing Rs. 100/-. This pricing strategy is known as
_________.
(a) Differential pricing
(b) Competition based pricing
(c) Psychological pricing
3. The demand for a good is said to be ________ when the Price Elasticity
of Demand is less than one.
(a) Elastic
(b) Unitary elastics
(c) Relatively elastic
(d) Inelastic
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4. Many firms keep the price of their goods and services in accordance
with the quality perceived by the customers. This indicates that
company’s pricing objective is ____________.
(a) Market skimming
(b) Product-quality leadership
(c) Market penetration
(d) Survival
5. Base methods to set price is either on cost plus basis or competition-

based prices. There is one more approach namely ___________. This
approach is based on sizing up each customer’s willingness to pay and
then negotiating a price that the customer will accept.
(a) Perceived pricing
(b) Opportunistic pricing
(c) Consumer based pricing
(d) Market skimming
Answers: 1. (a), 2. (c), 3. (d), 4. (b), 5. (c).
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REFERENCE MATERIAL
Click on the links below to view additional reference material for this
chapter
Summary
PPT
MCQ
Video Lecture - Part 1
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PROMOTION DECISIONS UNDER MARKETING
Chapter 8
Promotion Decisions Under Marketing
Objectives
• what is promotion management
• what is promotion mix
• different elements of promotion mix
• how to establish your promotional mix
• promotion mix in industrial (B2B) products market
• promotion mix in service marketing
Structure:
8.1 Introduction
8.2 Salient Aspects of Promotion
8.3 Promotion Mix
8.4 Sales Promotion
8.5 Personal Selling
8.6 Other Elements of Promotion Mix
8.7 Establishing Your Promotional Mix
8.8 Promotion in Industrial (B2B) Products
8.9 Promotion in Service Marketing
8.10 Summary
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8.1 INTRODUCTION
The Concept of Promotion Management
When marketers promote any product, they are engaging in persuasive

communication: Marketers want to convince others to buy from them.
Marketers drive sales by promoting the benefits of their products or
services to pools of potential buyers. The ways marketers promote
product/services will largely determine whether they successfully plant the
right messages in the minds of their target audience. Also, promotions are
not always for the sale – it may be for lead generation, first trial, repeat
purchase drive, loyalty recognition and so forth. This chapter explains how
you can establish a promotional mix best suited to your company's needs
and resources.
What is Promotion under Marketing?
In marketing, promotion refers to any type of marketing communication

used to inform or persuade target audiences of the relative merits of a
product, service, brand or issue.
The aim of promotion is to increase awareness, create interest, encourage

first trial, generate sales or create brand loyalty. Promotion covers the
methods of communication that a marketer uses to provide information
about its product. Information can be both textual and visual.
We can conclude that promotion is any form of communication a business

or organization uses to inform, persuade or remind people about its
products and improve its public image.
Promotion is one of the P’s of the marketing mix.
The subject of promotion covers promotion mix, promotion strategies, and

promotion plan.
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8.2 SALIENT ASPECTS OF PROMOTION
As one of the P’s in the company’s marketing mix, promotion plays a

strategic role as against general myth that it is done when you are not able
to sell.
Why You Want to Do a Promotion?
You do promotion to:

a. Capture the attention of the right group of potential customers in a
credible yet catchy way
b. Educate them about your products or services
c. Influence them to buy from you
There are different types of promotions as follows.
Types of Promotions
There are three types of promotions, namely:

1. Product promotion
2. Trade promotion
3. Institutional promotion
1. Product Promotion
Product promotion is done to convince customers to buy products from

you.
Product promotion serves the following purposes:

a. Explains the major features and benefits of its product vis-à-vis
competitors
b. Advertises sale on select products
c. Answers customers questions
d. Introduces new product, offers trials
e. Tells where products are sold
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2. Trade Promotion
Trade Promotion refers to activities that are executed in retail between two
business associates. Trade Promotion is a marketing technique aimed at
increasing demand for products in retail stores based on special pricing,
display fixtures, demonstrations, value-added bonuses, no-obligation gifts,
and more. Trade promotions are used by brands and wholesalers to gain a
selling edge.
(a) Increase their product visibility on retailers’ shelves
(b) Increase average consumption rate for any product
(c) Helps to improve segmented promotion
(d) Idea approach for new product launch
3. Institutional Promotion
Institutional promotion is used to create a favourable image for itself. The

purpose of this type of promotion is not to sell a specific product but to
‘sell’ the company to potential consumers.
Institutional promotion serves the following purposes:

a. Develop organization’s equity
b. Build trust and positive image about the organization among the citizen
c. Allows organization as a brand to stay over their various popular brands
(You must have notices that many TVCs today have corporate logo
coming)
d. Product may come and go, brand may disappear, but organization’s
values and ethics don’t change overnight. Masses must be aware about
what your organization stands for.
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8.3 PROMOTION MIX
What is a Promotion Mix?
We have understood what promotion is. The concept of promotion when

organization desires to apply, what is needed is a ‘Promotion Mix’.
Definition of promotion mix is ‘the blend of several promotional tools used
by the business to create, maintain and increase the demand for goods and
services’. The promotional mix consists of blend of promotional variables
(communication tools and channels) chosen by marketers to help a firm
reach its goals.
Please note that it is described as a mix because you need to use several
tools and channels simultaneously to achieve your desired result. What you
use, depends on your specific need. Optimal mix will get you desired
result, reach your goal, and maximize the return.
Elements of Promotion Mix
Elements of promotion mix are represented in the figure below:
Fig. 8.1: Elements of Promotion Mix
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How you integrate above elements depends on what you're promoting, the
biases and preferences of the potential customers you're courting, general
market conditions and your promotion budget.
We will cover them one by one. However, advertising is also later covered
under marketing communication, thus here it will be briefly covered.
1. Advertising: Advertising is any paid form of media communication.

This includes print ads in magazines, trade journals and newspapers,
radio and TV announcements, Web-based visibility-building, and
billboards, social media and other digital platforms. Advertising is a non-
personal promotional activity because the seller has no direct contact
with the potential customer during the communication process.
2. Sales Promotions: Media and non-media marketing communication

used for a pre-determined limited time to increase consumer demand,
stimulate market demand or improve product availability. Examples
include coupons, sweepstakes, contests, product samples, rebates, tie-
ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions.
In-store demonstrations, displays, contests and price incentives (50%
off, buy-one-get-one-free) are some of the popular sales promotion
techniques.
3. Personal Selling: Face-to-face communication between buyer and

seller. Personal interaction-based process of helping and persuading one
or more prospects to purchase a good or service or to act on any idea
through the use of an oral presentation, often in a face-to-face manner
or by telephone. Examples include sales presentations, sales meetings,
demonstration, handover samples, and telemarketing.
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4. Public Relations: These activities promote a positive image, generate

publicity and foster goodwill with the intent of increasing sales.
Generating favorable media coverage, hosting special events and
sponsoring charitable campaigns are examples of public relations.
5. Direct Marketing: A form of advertising aimed directly at target

customers (usually in their homes or offices) that asks the receiver to
take an action, such as ordering a product, clipping a coupon, phoning a
toll-free number, give a missed call or visiting a store. Catalogues,
coupon mailers and letters are common forms of direct marketing. It
covers methods such as with methods such as mobile messaging, email,
interactive consumer websites, online display ads, fliers, catalog
distribution, and promotional letters.
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In Fig. 8.1 above, I have put two additional nods namely (a) Digital
Engagement and (b) Retail Engagement. In this 21st century, it is
essential to enlighten you on growing emphasis on making customers
engage with you and engaging better with customers. Digital engagement
is placed between direct mailer and advertising as it is feasible to have
digital engagement. Retail engagement is put closure to the sales
promotion as it essentially comes under it, but it also facilitates innovative
ways of personal selling.
Students are requested to recall the understanding about ‘Promotion’ and

then related each one of the above. It will help you to really understand
each element and get desired clarity on the subject.
Activity A
Study the promotion-mix of Colgate toothpaste by listing various things
you may recall under each elements of the promotion mix.
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
8.4 SALES PROMOTION
Role of Sales Promotion
There are multiple roles of sales promotion and some of them are as listed
below:
1. It pulls in new customers: It is always essential for any marketers to

pull new consumers into their product orbit and persuade them to buy
and continue to
re-purchase.
2. It retains the existing customers: It’s a popular quote in marketing

which states that it is always economical to do business with the
existing customers rather than pulling in new customers. It ensures
steady state growth and stability to the business.
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3. Outsmart competition: Brand and brand position is no doubt very

critical but once you establish it, you can’t keep repeating same
message. In such case, sales promotion comes as a handy tool. Sales
promotion is not simply offering free samples or discount sale. The
innovation, exclusivity you create, continues to help you differentiate
but even maintain the brand position – Mahindra Automobile does
Adventure Car Rally, and BMW sponsoring Golf Tournament, shows their
deeper understanding of consumers and helps them outsmart their
rivals.
4. Encourage middleman: There can’t be total direct sales by

manufacturers to consumers in these days of mass and concentrated
production on one side and widely scattered consumers on the other.
Middlemen are a must to connect the two ends to balance the demand
for and supply of goods.
However, to make them to perform their functions well, they are to be

kept satisfied through incentives. It is sales promotion that works in
keeping them happy and ready to serve.
5. Reduce cost and improve margins: More sale means various cost
associated with the production and distribution of goods will get spread
across a greater number of products. Thus, per unit cost comes down,
which improves the margin. When margins are passed on to the
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distributors, they push more of your product thus it largely benefits

distributors also.
6. Increase footfalls: It means bringing more customers to the doors of

your distributors/retailers. They will earn, only of goods get sold. To sell,
more customers must come to them. Thus, many time, primary
objective of sales promotion is to lure and bring customer to your
distributor/retailer.
There are few more roles being played but what we have covered are key
roles.
Types of Sales Promotion
Sales promotion can be of two types: (a) Product-specific sales promotion

and (b) Trade promotions.
Product-specific Sales Promotions
Product-specific sales promotions are for the final consumers. Sales

promotion being the process of persuading a potential customer to buy the
product, same is designed to be used as a short-term tactic to boost sales.
Consumer-oriented sales promotion targets individual customers. It

engages and motivates potential buyers. Examples include free samples,
coupons, contests, rebates, premiums, point-of-sale displays, and other
incentives intended to stimulate immediate sales. Retailers willingly
participate in it and allows display of merchandise, etc. Attractive window
and interior displays and eye-catching exterior signs can lure shoppers and
reinforce the unique theme or character of your store.
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Fundamental focus during sales promotion planning should be:

a. Set it for the right segment: Very critical as it gets you incremental
sale, else only existing customers buys and gets benefits and yields
limited incremental sale.
b. Will it lead to call for action: The offer and method to getting sales
promotion benefit is motivating enough to compel target segment
consumers to act as desired.
c. Compliment strategic marketing planning: Sales promotions must
complement overall strategic planning. For instance, Raymond’s offering
discount may not go down well with the complete man segment profile.
Instead they may offer FREE DESIGNER CONSULTATION.
d. Sales promotions are aligned with the brand image: Sales
promotion planned by mass car producer vis-à-vis by BMW car
manufacturer will be distinctly different in terms of its offer.
e. Repeat purchase inducing: Will the sales promotion attract customers
who will continue to buy the product once the promotion ends or
otherwise?
Objectives of Sales Promotion
Some of the important objectives of any sales promotions are as follows:
(i) Increase sales volume (ix) Encourage dealers to participate

in display and sales contests
(ii) Speed up the sales of slow- (x) To gain advantageous shelf-
moving products space
(iii) To check the fluctuations in sales (xi) To increase store traffic
(iv) Attract new customers (xii) Improve relationship with
dealers
(v) Launch new product and (xiii) To block competitors’ moves
increase trial
(vi) Encourage repeat purchase (xiv) Motivate sales force
(vii) Clearance of excessive (xv) To supplement advertising and
inventories personal selling efforts
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(viii) Motivate dealers (xvi) Deflect customers attention from

price
For each of the above, various tactics needs to be applied, aligned with
your strategy.
Advantages of Sales Promotion

• Build relationships: To develop brand loyalty and equity, you must
build relationship. Right kind of promotions will make consumers retain
his relationship with the brand, e.g., Flipkart’s The Big Billion Days sale is
now a relationship builder.
• Stir excitement: Many consumers love contests and sweepstakes. You
can turn a drab purchase into a livelier event by promising cash prizes to
lucky winners.
• Gauge price sensitivity: At what discount level you get higher
threshold sale determines price sensitivity and elasticity both.
Disadvantages of Sales Promotion

• Risk of not triggering action: Obvious contradiction in the product,
image may backfire – You do not have extensive retail presence and you
release a promotion in which coupons to be given at the nearest retail
counter will obviously not work.
• Risk of dependency: Frequency of sales promotions, competition and
retail network’s unwarranted dependency on incentives will make the
whole exercise lose its meaning and utility.
• Risk of downscaling the brand image: Nature of promotional scheme,
its frequency may undermine brand’s image. As a result, prestige and
status conscious consumers will stop buying and discount hungry
consumers will only when promotional incentive is given.
Trade Promotions
In a fiercely competitive market, it is required to provide sufficient

incentives to various trade channel members for purpose like improve their
return, push your product, pass benefits further down-line to develop
sustained brand push, volume sale, providing larger shelf area and more.
Some of the trade promotion approaches are as follows:
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a. Attractive terms of sale: Take back offers, business on credit facility,

price discount or allowance like free or extra units of the product to
encourage the store manager to run the brand’s promotions.
b. Dealer contests: Dealers with maximum sales or window display are

rewarded.
c. Services to dealers: Manufacturers help in designing and arrangement

of the goods in the store. Training and sale techniques coaching given to
the dealers’ staff free of charge.
It is abstract but important to point here that many organizations also

carry out sales force promotion under which they either provide target
incentive, foreign trips, gifts and more. Organizations also conduct trade
shows to facilitate new product intro, network, demonstrate the product to
get volume build up and develop preference among low/non-users of the
product/brand.
Institutional promotion is no doubt a kind of promotion, but it is strictly not

a sales promotion. It is done to achieve various other objectives for the
organization and thus it is into covered here.
Innovation in Sales Promotion
Innovation can take two dimensions:
a. Existing promotions done differently: On TV also now a days you

get message wherein they ask you to call or send SMS to get good offer
etc. In print media, even they adopted an approach to accommodate
idea by the advertisers-pasting sachet shampoo, trial coupon etc.
b. Promotion done using new age tools/platforms: In the current age

of digital and smartphone proliferation, various new platforms are
available – interactive website based participation, pop-up request on
website, blogs, call for free workshop invite on social media – Facebook,
Instagram, Snapchat, etc., free download, SEO marketing, inducing
forwards, give caption and share, Facebook Live, create moment on
tweeter, partner with influencer on Instagram, hashtags (#) on
Instagram, trade coupons on Snapchat, YouTube videos, partnering and
many more. Creativity can take a leap on new platforms. You also have
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APP based promotions possible which again can be more engaging

depending on features provided by the service provider.
Challenges in Sales Promotion Management
Following are few important challenges in any sales promotion:
a. Communicating value: Brands are often struggling when it comes to

building value in their sales promotion. Despite the fact that sales
promotion is done to get immediate sale, customer value offered is of
paramount importance. Many time it is not possible to achieve both the
objectives.
b. Showing instead of telling: One of the popular proverb states: “If you
tell me, I will forget; If you show me, I will remember; If you involve
me, I will understand”. Fundamental assumption with which sales
promotions are planned is to minimize investment and maximize
volume/ROI. Thus, in most cases you often notice that sales promotions
ads are static ads. This contrast needs to be handled objectively.
c. Understanding multi-buyer need: Generally, sales promotion is

developed to attract multiple segments with different profile. It is thus
difficult to determine that one aspect, which will trigger in them, call for
action as desired. Brand like Allen Solly will consider pulling the
attention of lower level consumers or existing level consumers? So, will
it take discount offer, free offer or any other promotion trigger?
d. Assessing the latest technology: In today's technology-driven world,

there are an overwhelming number of tools to help salespeople close
deals. Cloud technology, CRM systems, data analytics tools, web content
management and sales software exist to make the job easier.
Machine learning, artificial intelligence, content distribution systems,

augmented reality and virtual reality are also out there and becoming
more widespread because of their accessibility, interactivity and
effectiveness.
Take IKEA, for example. This organization has wider tools in their basket
(such as augmented reality) but in India, the retailer just rolled out its
social media campaign showcasing product functionality. In India to
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implement augmented reality app functionality, allowing customers to

place virtual furniture in their homes may need more time.
e. Connecting on an emotional level: Establishing and building

emotional connections with prospects transcends traditional sales and
marketing relationships. When prospects have the ability to immerse
themselves in a solution and fully explore a product themselves, they
develop deeper understanding and retention, creating an emotional
connection.
Building engaging, educational and interactive experiences has been

proven to create 2x more conversations than passive content. However,
it is little far-fetched in sales promotion.
8.5 PERSONAL SELLING
What is Personal Selling?
Personal selling occurs when a sales representative meets with a potential

client for the purpose of transacting a sale. 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 specialist product knowledge, practical selling techniques, objections
handling and negotiating. They aim to inform and encourage the customer
to buy, or at least trial the product.
Personal selling involves:

• The two-way flow of communication between a buyer and seller
• Generally, involves a face-to-face encounter
• Designed to influence a person's or group's purchase decision
• Finally, through relationship and partnership selling, salespeople play a
central role in tailoring solutions to customer problems as a means to
customer value creation.
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Overall falls under sales management and involves planning the selling
program and implementing and controlling the personal selling effort of the
firm. The scope of selling and sales management is apparent in two ways.
First, virtually every occupation that involves customer contact has an
element of personal selling. Second, selling plays a significant role in a
company's overall marketing effort. Salespeople occupy a boundary
position between buyers and sellers; they are the company to many buyers
and account for a major cost of marketing in a variety of industries; and
they can create value for customers.
Why Personal Selling is Important?

Personal selling is an important marketing tool for any businesses,
particularly those that sell complex or high-value products and services to
other businesses, rather than consumers. Boiler plant manufacturer needs
personal selling so that their salesperson can visit factories to factories and
promote product, car dealerships need sales consultant for demonstration,
explaining product USP, insurance companies need agents for explaining
various natures of insurances and getting best advice.
Personal selling is important due to the following reasons:
Persuading Prospects
Sales representatives use their personal selling skills to increase the

chances of a successful sale. They aim to understand a prospect’s needs
and offer a solution to those needs in the form of a product or service that
provides strong benefits and represents value for money. If prospects pose
objections, sales representatives use their knowledge and understanding to
overcome the objections and convince prospects that they are making the
right choice by buying a product or service.
Selling Complex Products
Companies that sell complex products must be able to demonstrate or

explain products to potential customers and answer questions or queries.
Sales representatives can present products in a logical way, focusing on the
benefits that are relevant to different decision-makers, such as technical
managers, purchasing officers or finance executives. Representatives use
their experience to gauge a prospect’s response to their sales pitch and
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adjust their presentation to individual prospects’ levels of understanding or

interest.
Managing the Sales Cycle
Personal selling is important to companies marketing products that require

a long sales cycle. In business-to-business marketing, prospects move
through a buying process that involves a number of stages, including
identification of a need, development of a specification, selection of
potential suppliers, evaluation of suppliers’ offerings and a final purchasing
decision.
Sales representatives can influence each stage of the process by ensuring

that prospects are fully aware of a supplier’s capability and product
benefits. They also ensure that prospects receive the product, pricing and
technical information they need to decide, and they maintain contact with
the important decision-makers throughout the sales cycle.
Developing Customer Relationships
To build long-term revenue for the future, representatives use personal

selling skills to develop strong relationships with customers. By contacting
customers after they make a purchase, for example, representatives can
demonstrate that their company offers high levels of customer care. They
also maintain contact between sales to ensure that customers consider
their company when they are planning their next purchase.
Types of Personal Selling
There are following types of personal selling. If you see different

knowledge sources, different angles may come forward.
a. Order Finalizer: He is an active personal seller with involvement at all

the stages of the entire purchase cycle-handling requisition till finalizing
a purchase order. In many product categories beyond a particular stage
of the purchase cycle, order finalizer starts getting involved as they
have not only better objection handling, negotiation skills but also some
power to reduce price, etc.
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b. Order Taker: He is a passive personal seller with involvement limited

to receiving orders as per ordering cycle pre-decided during the order
finalization. For items like spare-parts, etc., order is finalized where
rates, volume discount and other aspects are finalized by the company
with the spare-parts distributors. Order taker person is given specific
frequency to visit specific category of distributors as per the pre-defined
period – say A class distributors every 7 days. He just visits the office
and seeks the order. If order is there, he collects the order details. He
also facilitates info about the new product, promo-scheme, etc.
c. Customer Sales Support Personnel: This person plays the role of

augmenting the sales effort of order getters by performing a variety of
services.
d. Over the Counter Sales Personnel: In shops and malls, you meet the
sales guy present across the counter. Here, they play the role of
showing product, explaining it, convey utility to the visiting customer
and persuading for its purchase.
e. Impersonal Selling: Telemarketers are doing impersonal form of

personal selling over the call. For credit cards, loans, etc. you get such
calls.
Stages of Personal Selling
The personal selling process consists of six stages:

a. Prospecting: Prospecting involves the search for and qualification of
potential customers.
b. Pre-approach: The pre-approach stage involves obtaining further
information on the prospect and deciding on the best method of
approach.
c. Approach: The approach stage involves the initial meeting between the
salesperson and prospect.
d. Presentation: The presentation stage involves converting a prospect
into a customer by creating a desire for the product or service.
e. Close: The close stage involves obtaining a purchase commitment from
the prospect.
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f. Follow-up: The follow-up stage involves making certain that the

customer's purchase has been properly delivered and installed and
difficulties experienced with the use of the item are addressed.
8.6 OTHER ELEMENTS OF PROMOTION MIX
From the five elements of promotion mix namely: (1) Advertising, (2)
Sales promotion, (3) Personal selling, (4) Public Relations and (5) Direct
marketing. As mentioned earlier, the subject of advertising we will study in
the subsequent chapter. In this chapter, we have studied sales promotion
and personal selling in details. There are two other elements namely public
relations and direct marketing, we will study here briefly.
Public Relations
Public relations is the practice of deliberately managing the spread of

information between an individual or an organization and the public. Public
relations may include an organization or individual gaining exposure to
their audiences using topics of public interest and news items that do not
require direct payment.
"Public relations is a strategic communication process that builds

mutually beneficial relationships between organizations and their publics".
Public relations can also be defined as the practice of managing
communication between an organization and its publics.
You must have noticed that just before monsoon, you hear about various
articles on water borne diseases, companies later release advisories to stay
safe etc. These will be done mostly by companies making water purifiers,
water filter system and likewise. You also notice bloggers publish pre-
launch product introduction and views. All these are part of well-planned
public relationship exercise.
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Various dimensions handled under public relations are as under:
• Investor Relations: Publishing quarterly financial reports, calling meets

of stakeholders, responding to investor queries, media queries and
analyst queries.
• Government Relations: Communicating with government bodies on
compliances, and regulatory, government cause specific initiatives like
Clean Environment Drive, etc.
• Media Relations: Managing media relationship and providing them
requisite information needed by media for independent assessment and
publishing it.
• Media Production: Making films and other production content that
conveys corporate goals, image and social service drive.
• Customer Relations: Working with customer service team to handle
customer perceptions, relation specific issues, seek inclusive customer
participation in improving product quality and way you serve.
• Marketing Communications: Leveraging communication channels and
media relationships to generate demand for product and brand
awareness.
• Influencers: Managing relationship industry opinion leaders, policy
influencers and other such individuals who can help you build favourable
influence across different bodies, associations, etc.
• Social Media: Managing all social media channels to spread the
information about the good work, initiatives being launched by the
organization and engage better with the community and the stakeholder
better.
• Internal Communications: Last but not the least is to maintain
confidence among all employees, make them feel part of the organization
family by sharing relevant info, keeping them well informed in various
matters of employees’ personal interest and his social outlook about his
own company.
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Public Relations Management Roles

• Strategic Management: Acting as a counselor, the PR practitioner
serves on the management team helping the organization develop sound
policies that are in the best interests of the public as well as the
organization. The PR practitioner integrates an understanding of the
concerns and attitudes of key publics into the organization’s managerial
decision-making process.
• Communication Management: Organization and its functioning specific
information being sensitive in nature, public relationship management
team not only have to issue internal guidelines to all employees
regarding them dealing with company information in public but must
ensure that they provide timely feeds to all relevant stakeholders who
desires information.
• Launch Management: Public relationship team must play a vital role in
pre-publicity management of their forthcoming new product launches,
new initiatives, etc. During such phases, they plan media interactions,
road shows, face-to- face interviews, product reveal for media/bloggers
and more needs to be coordinated.
• Issues Management: This involves identifying problems, issues and
trends relevant to an organization and then developing and executing a
program to deal with them.
• Relationship Management: This involves the role of public relations in
identifying key publics and establishing strategies for building and
maintaining mutually beneficial relationships with those publics.
• Reputation Management: The planning and implementing of policies,
procedures and strategies that demonstrate an organization’s
commitment to public and social responsibility, ethical behaviour,
corporate identity and reputation with key publics.
• Crisis Management: Establishing methods and policies to be used when
an organization’s operations become involved in an emergency affecting
the public. This includes policies and procedures for the distribution of
information to employees, media, government and others.
• Resource Management: PR’s management of human and financial
resources revolves around setting objectives, planning, budgeting,
recruiting and hiring PR staff handling sources.
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• Risk Management: As preventive PR, this role involves helping an

organization recognize areas of potential danger and recommending
needed changes before potential dangers develop into crises.
Public relations assume increasingly greater role as organizations are

inventing in innovation, new technology-based products, improved
customer value centric alignment and more and more product launches are
coming up vis-à-vis constant need for equity funding requires positive
public image.
Publicity
Publicity from a marketing perspective means conveying information and

generating awareness about products and services to the general public or
target audiences through various media. Publicity is a short-term activity
vis-à-vis public relations. Public relations encompass much wider
perspective of organization’s relationship with various stakeholders.
Publicity is linked with specific product or service specific spread of
information.
Importance of Publicity
• Minimizes the cost of product information awareness vis-à-vis advertising
cost of reach.
• Your business gets more traction among your target audience as it
reaches them either as a news, or expert article and other formats in
which target audience interest is present.
• It helps to form strategic alliances as other companies will come forward
to engage with you because it shows that you are putting yourself out
there and offer them an opportunity to work with you.
• Right ways of publicity and media you use, will create an impression
about you being leader/expert and thus gets you desired call for action.
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Direct Marketing
Direct marketing is a promotional method that involves presenting
information about your company, product, or service to your target
customer without the use of an advertising middleman. It is a targeted
form of marketing that presents information of potential interest to a
consumer that has been determined to be a likely buyer.
Raymond’s send 1,00,000 direct mailers across India to those who

purchased suiting cloths in last 2 years across their outlets and submitted
their contact details by consenting to receive experts and designer advice
on suiting trends. It has a mailer with an offer needing individuals to send
one SMS in a pre-developed text format to get a free consultation by their
tailoring expert at the nearby shop and get 30% rebate on the complete
cost of a suit making (including tailoring).
What Makes the Direct Marketing Different?
Following aspects makes the direct marketing different:
a. Targeted buyer (or likely buyer): It has a specific profile of

consumers identified for targeting, who are likely to be your likely buyer.
In above Raymond’s example – 1,00,000 individuals who purchased
suiting cloths from Raymond’s shop in last two years.
b. Medium to reach directly: There is a medium to reach your targeted
customers directly. In the case of Raymond’s example, it is direct mailer
sent. In today’s world, there are many such mediums.
c. Offer: It’s a proposal to targeted groups which offers him something,
which other mass buyers don’t get it – higher discount, free, vouchers,
coupons, service, consultation or any combination thereof. In our
Raymond’s example, it is free consultation and discount being offered.
d. Call for action: Customers are expected to take a specific step (action)
to avail the offer. In our Raymond’s example, it is pre-developed SMS to
be sent to a specific number, e.g.. SMS FREE CONSULTATION to 57575
or likewise. In our Raymond’s example, it is SMS to be sent by the
interested consumers. Call for action can take many forms depending on
the medium – shampoo sachet pasted on a newspaper, SMS, APP
download, form submission, participation confirmation, and many more.
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e. Variations feasible: You may have multiple offers developed and

release right offer across right region, state or demographically identical
class of individuals. For one campaign, you may have different brand
ambassadors, different creative look and feel, different language
content, etc. This allows you to make your offer more relevant and thus
higher returns may be expected.
f. Test marketing possible: You can test market your offer, creative, call
for action, etc. by launching your direct marketing activity within the
limited geographic area.
g. Undercover operation vis-à-vis competition: You direct marketing
initiative will not be known to competitions. It reaches the targeted
consumers without the use of mass media.
h. Measurability: Perhaps only medium in which every stage has a
measurability and thus utility to any marketers-Response rate, sale to
coverage (total nos approached), sale to response rate, average same,
ROI, etc. besides data base obsolescence based on undelivered mails,
emails etc.
Table 8.2: Different Forms of Direct Marketing

Brochures Targeted online display ads
Catalogues Phone calls
Fliers Text messages
Newsletters Action buttons on social media
Post cards Digital media
Coupons Kiosk offers
Emails In-store offers
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Steps in Direct Marketing
a. Database Building: For direct marketing, database is very important.

It provides you direct connection with the consumers. It may be name
and address, name and number, name and email. Profiling in direct
marketing is significantly important thus certain demographic
information is also needed. Besides these, you may also compile info
about nature of goods purchased, frequency of purchase, average value
of goods purchased, new additions in purchase, life stage (age), etc.
helps you to profile your target customers data base. Not only that,
successful campaign when studied, profile of database utilized can give
you an opportunity to procure similar profile database from the available
sources. For example, if you used your Gold card members of certain
credit card company and found that campaign got good response, you
may buy similar gold card members data base of other credit car
company.
b. Offer and call for action: Two important aspects which will make your
campaign successful and thus needs careful consideration. Offer should
be such that its lucrative, irresistible and not available to others to give
it an exclusivity. Call for action should be most practical and easy to
take. If you design a call for action which needs reader to cut the
coupon in the newspaper and give it to the retailers, vis-à-vis SMS to a
number, naturally second way of SMS will be more response generating.
c. Make the source identifiable: Depending on a slice of identification

you need, you must create an identification mark, code number, alpha-
numeric number, QR code, etc. in such a way that during the analysis
phase, analyzer can not only identify various sources and generate
number against it to help you determine the success rate.
d. Test the campaign: Perhaps the only medium which can be tested in
shorter duration with limited outlay of funds. Here, you may test two
different offers and its impact by circulating your direct mailer within the
limited geographic location. You can also test different call for action and
its success rate. You may test other aspects like body copy, bundling
etc.
e. Consumer response: You must have consumer response set up

appropriately designed to address the response rate-number of call
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centre staff, lines, SMS mechanism, acknowledgement mechanism, etc.

set to make consumer feel he is attended well in time and on the other
hand, right handling will help you to ensure prompt closure of sale.
f. Measure the response: At the end of reasonable period, you need to

analyze the response received. It should be able to tell you what
worked, what did not work, all leading to determining ROI. Besides ROI,
it may be response rate, recognition about the profile selected,
emergence of a new profile of customers to tap in the future and other
learnings captured to be incorporated in the future campaign.
Successful direct marketing needs step by step planning with careful

considerations to differentiating aspects well-articulated and tested.
Activity B
Establish a direct marketing plan for Raymond’s Made to Measure
customized tailoring service for upmarket individuals. You may make your
own assumptions.
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8.7 ESTABLISHING YOUR PROMOTIONAL MIX
Establishing the promotional mix that's right for your company involves
seven steps:
a. Determine your target market: The segment of people that needs, or

would benefit from, your product or service is your target market.
Understanding these individuals' attitudes and behaviors will help you
design the best message and select the right means to reach them.
Example: If you own an upscale jewelry store, you know from your sales
history or marketing research that your target market is consumers
earning more than Rs. 75,00,000 per year. Any print advertising should
thus appear in publications in which readership income exceeds Rs.
75,000.
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b. Determine your objectives: You must determine the response you

want to elicit from your target market, such as motivating them to make
first purchase, make an ad-hoc purchase, corner share of seasonal
spend share (Diwali etc.), send SMS, call for test-drive/demonstration,
or grab the free trial of your product.
Example: To introduce new customers to your product, a direct-

marketing technique, such as a direct-mail letter with a money-saving
offer to first-time customers, might work. Or you can try a sales
promotion, such as two-for-the-price-of-one. If your target market has a
misconception about your product (say, that it's more expensive or less
effective than rival products), you can correct the perception by
providing comparisons or testimonials.
Reasons for sales promotion could be new product introduction,

competitive defense, create brand awareness, communicate new product
features, develop word of mouth, during re-position, trade persuasion to
push the product and likewise many other reasons due to which
promotions are carried out.
c. Design your message: The design of your communication incorporates

two main factors: content and format. Content. The content is the
words and images you use to appeal to your target market. You must
give your potential customers reasons they should respond to your
message. Think of the most important benefit a user of your product
receives. That should lead you to the central theme of your message's
content.
Benefits fulfill a human want or need. Example: The desire to enhance

status, save money and time, or increase safety or security.
In choosing your promotional mix, you must communicate how your

product produces a positive emotion or satisfies a particular need. In the
case of the jewelry store mentioned earlier, the message can appeal to
the target market's desire to gain status, a likely motivator that drives
jewelry shoppers. Or your message can communicate the desire to be
loved: "If you love her, then you will buy her this elegant ring to prove
it".
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Format: Each element of the promotional mix has its own format
requirements. Web advertising relies on graphics, clarity and color, while
personal selling may involve structured presentations, handouts and
diagnostic tests to engage potential customers.
To determine the best format to deliver your content, consider the

technical aspects of presenting your message. If you prefer to
demonstrate a product to sell it, you should probably include a broadcast
medium in your advertising. That in turn will lead to decisions about
sound effects, camera angles, lighting, and so on. Format: for print
advertising depends on how long or big a headline should look, how to
integrate graphics and what types of photos reinforce your message.
d. Select your promotional channels: Entrepreneurs who miss revenue

goals often explain the disappointing results by saying, "We were out-
marketed". That usually indicates a failure to plan and implement the
right promotional mix.
By choosing the best methods to convey your message-and extracting

the most value from your financial and creative resources – you can
devise an integrated marketing communications program that reinforces
your company's distinct character in your customers' minds.
Weigh the pros and cons of each of the five promotional methods, which
we have studied earlier in brief and few will be studying in detail.
For this purpose, one model is very poplar and known as AIDA
(Attention-Interest-Desire-Action) model.
The AIDA concept assumes that promotion propels consumers along four
steps in the purchase-decision process, as follows:
• The advertiser must first gain the attention of the target market.
• Create an interest in the product.
• Generate desire to purchase the product by addressing stimuli which
will make his take the action.
• Action is the final steps which is a result of desire and facilitation of
purchase – easy finance, interest free, etc.
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Application of the above needs your understanding in terms of knowing

where on the purchase ladder most of the target consumers are located
and design a promotion plan to meet their needs. The different elements
of the promotional mix are not equally effective when buyers are at
different stages in their hierarchy of effect model as can be seen in the
following table:
Table 8.3: Promotion Mix Channels vis-à-vis AIDA Effectiveness

Awareness Interest Desire Action
Advertising Very effective Very effective Somewhat Not effective
Effective
Public Very effective Very effective Very effective Not effective
Relations
Sales Somewhat Somewhat Very effective Very effective
Promotion Effective Effective
Personal Somewhat Very effective Very effective Somewhat
Selling Effective Effective
Above model thus helps you to determine which channels to select.
However, following factors affect overall choice of your promotional mix:
• Nature of product
• Stage in PLC
• Target market factors
• Type of buying decision
• Promotional funds
e. Determine your budget: A common method of establishing your

promotional budget is to estimate what your competitors spend and
then match it. You do this by monitoring their ads, promotions and
special events they sponsor. While this lacks precision, it provides a
ballpark estimate.
Once you gather data about your competitors' promotional budgets,

don't copy your rivals' spending habits or promotional mix. Use your
information as a guide. Following methods may help:
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• Activity budgeting: Here, all that you wish to do to achieve your

marketing objectives, mitigate the competition, is expressed in the form
of activities and budget for the same is derived. Collective total will give
you your budget requirements. This gets further refined based on per
volume expense, increase sought, profitability expected, etc.
• Share of Voice: In a crowded market, you must be heard. Everyone is

spending on promotion mix. Thus, it creates its own voice. You voice
must be heard; thus, you need to maintain your share of voice. Based on
future projection of volume, competition volume based on market
conditions, you derive your assessment about your budget and then
refine it post evaluating competitive move – will they increase spend this
year or reduce. Based on this, your share of voice and budget gets
decided.
• Derivative of sales and profitability: Many times your budget gets

decided based on expected sales and profitability thereof decided your
budget based on what is left for you to spend. Establishing an effective
promotional mix cannot occur if you allocate resources sporadically. For
your marketing message to produce results, promotional activities must
occur on a regular basis. Consumers rarely take immediate action and
may benefit from repeated exposure to your message before they buy.
f. Determine your promotional mix: Now that you have completed all
of the preceding steps, it's time to formulate your actual promotional
mix. The most common method for actually putting your mix on paper
is to express it as a percentage of your overall promotional budget.
Example 1: Our upscale jeweler's promotional mix based on a budget of

Rs. 5.00 crores might look something like this:
• 50% Direct Mail: Direct-Mail Campaign = Rs. 2.50 crores
• 40% Advertising: Print Ads in Local Lifestyle Magazine = Rs. 2.00
crores
• 10% Sales Promo: Coupon in Direct-Mail Letter For free valuation = Rs.
0.5 crores
Based on your industry, competition, your marketing objectives,

profitability consideration you need to decide your promotion mix.
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Always integrate and coordinate the various tools you use. For example,
sales promotion can be integrated with advertising by announcing a
contest in a print advertisement. Public relations efforts should try to
produce results at the same time advertisements are scheduled to
appear. Direct-mail letters should be sent the same week a new sales
promotion begins.
g. Measure the results of the implemented program and adjust as

needed: Various promotion mix are designed to achieve certain
objective such as advertisement for reach, sales promotion for
increasing sale and likewise, thus amount is decided to be spent on
each promotion mix elements. It is essential to thus measure the result
vis-à-vis objective set and actual result achieved. Learning from it may
help in the future.
Establishing your promotional mix needs careful planning. It needs

understanding of marketing challenges, consumer buyer behaviour,
consumers buying triggers, what is valued by your consumer about your
brand, promotion medium and its understanding, reach and
effectiveness understanding. All these information gets churned into
effective selection and weightage for different elements of the promotion
mix, designing offers and budgeting.
8.8 PROMOTION IN INDUSTRIAL (B2B) PRODUCTS
What is Industrial Products Market?
Industrial products marketing is also known as B2B marketing. In B2B

marketing, finished goods of one manufacturer become the raw materials
for another manufacturer – Copper coil maker supplying it to alternator
manufacturer is an example of B2B marketing. We will study this format in
subsequent chapters in detail.
Marketing mix for industrial products marketing is same as consumer

products (B2C) marketing – (a) Product, (b) Price, (c) Promotion and (d)
Place.
The broad classification of B2B markets is: (a) The Industrial Market, (b)
The Reseller Market and (c) The Government Market. Promotion works
equally well for the industrial market and the reseller market. At the
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government market, it is not effective as they operate their buying in a

different manner.
Salient Aspects of B2B Promotions

a. It is a part of the marketing strategy.
b. Improves sales effectiveness/reduces personal selling costs.
c. Cannot cover product shortcomings – If your product lacks any specific
feature, your promotion is not going to help, when customer is looking
out for the product with a specific feature in mind.
d. Cannot create a demand in a non-existing market – Industrial product
purchases are rational in nature. Goods are purchased, only when
required.
e. Requires hard work, careful analysis, research and planning.
What Must Industrial Products (B2B) Promotion Achieve for the

Target Customers?
a. It must highlight solutions to problems, cost-effective operation and
maximizing of efficiency at the customer level.
b. It must induce action, namely, generate inquiries leading to a purchase
decision.
c. It must fulfill the target group’s motives, namely, profit for the
organization, process upgradation, replacement of obsolete equipment,
etc.
d. It must be able to influence customer attitudes.
i. Confirm existing attitudes: All bearings do the same function –
Reduce friction.
ii. Change existing attitudes: Special purpose bearings (instead of
normal bearing) can improve productivity.
iii. Create new attitudes: Aluminum die cast motor is better in long run.
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Promotion Mix for Industrial (B2B) Marketing
We will cover the overview of 5 elements of B2B promotion mix:
a. Advertising: It is limited on mass marketing mainline news media/TV,

more on business media, relevant digital media and trade directories.
Generally, follows institutional advertising norms.
Advertising may take either pioneering product approach for new

product, first time or innovation-centric product or it may take feature
rich approach to create competitive differentiation or comparative
advertisement wherein feature by feature comparisons are given.
Advertising may take communication angle as:(a) ‘Technology’

highlighter, (b) ‘Superiority’ highlighter,(c) ‘Rationality’ highlighter, (d)
‘Functionality’ highlighter,(e) ‘Feature’ highlighter, (f) ‘USP’ highlighter or
(g) ‘Service’ highlighter.
B2B marketing uses advertising media like (a) Business newspapers, (b)
Business magazines and (c) Industrial magazine – IPF.
Industrial products (B2B) marketing advertisement may be on (a)

product, (b) product campaign, (c) product range and (d) dealership
advertisement.
b. Sales Promotion: Industrial purchases being a rational, process driven

purchase, thus sales promotion here takes the route of trade
promotions. Participation in international, national or regional trade fairs
is from the point of view to develop favourable brand/product image and
to get the desired pull in their inquiry levels. On the other hand, trade
network promotions are done to push the product in the network for its
eventual sale to the final consumers.
c. Personal Selling: One of the very crucial and critical aspects of

industrial marketing. Personal rapport and selling skills enable the
marketers throughout the product buying cycle. Personal selling is an
enabler to get the requisitions for purchase, quotation development and
submission, ensuring moment of truth to materialize at key stages –
new product intro, product selling, product demonstration, establishing
superiority of product over competition, objection handling and
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negotiation. We have studied about personal selling in earlier section

and thus other details not covered here.
d. Public Relations: Public relationship and publicity plays limited role.

However, organization can use it to build requisite corporate image
establish the organization as a corporate citizen. Publicity supports with
building company’s image as technology pioneer, innovation led, value
driven and likewise. Public relations need to do things described earlier
like liaise with government bodies, stakeholders, investor relations, etc.
e. Direct Marketing: Very relevant and important promotion mix in

industrial (B2B) marketing. However, it is seldom used effectively. It
needs data capturing of individuals, hierarchy, buying process role,
functional classification and more. It needs to be constantly updated to
ensure that hierarchical elevations are captured, or resignations are
accounted for in your database. Proper classification on functions,
hierarchy and industry can give you edge and enables you to target
your offer and improve your call for action. One of the bearing
manufacturing company initiated this approach to sell bearing
accessories like bearing puller, lubricator, hubs etc. Within two years of
this program, database numbers rose from mere 500 in first month to
45,000 nos., representing 50 different industries, well classified to have
functional and hierarchical separations. Through regular communication,
company managed conveyed utility of bearing accessories, technology
superiority, etc. Before the start of the program, business media was
used but post two years business media use was discontinued, and sale
was doubled over two years.
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8.9 PROMOTION IN SERVICE MARKETING
What is Service Marketing?
Service marketing is marketing of intangible support/help as a product of

the organization using which consumer stands to fulfill his objective
without owning anything. Using a courier is an example of service
marketing, wherein you are able to deliver the goods to your customer, but
you do not own anything despite exchanging money.
Salient Aspects of Service Promotions

(a) It is a part of the marketing strategy.
(b) Improves experiential feasibility for your service.
(c) Offers a levers to continuously engage with the consumers.
(d) It facilitates word-of-mouth and viral marketing.
What Must Service Marketing Promotion Achieve for the Target

Customers?
a. It must help tangibalization of service among the targeted
consumers.
b. It must offer service experience opportunity to customers.
c. It must induce action by making consumers realize the utility of it for
him.
d. It must be able to develop customer attitudes.
i. Develop by informing: Provide sufficient information e.g.: Richfeel
hair transplant explains the way it happens and then provided the
offer to try it for the first time
ii. Develop urge to try early: Having established sufficient information,
its time to urge target consumers to try early – Richfeel provides
symptoms of early hair receding symptoms and urges individuals to
try the service early. Appropriate offer supports this – Register today
and get 50% off of first service availed during the three months.
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Promotion Mix for Service Marketing
We will cover the overview of five elements of service promotion mix:
a. Advertising: Use of advertising for the promotion depends on whether

service marketers is catering to the business organization or individual
consumers – Kaya Skin Clinic caters only to individual consumers. As
against this DHL Courier caters to business houses as well as individual
consumers. Thus, selection of media is determined by target group for
which it is developed.
Advertising to business houses takes the rational benefit approach or

speed or time savings approach. Advertising to consumers can take the
approach of convenience, assurance, safety, personal hygiene and
others to make consumer feel the service – Next day delivery
guaranteed, Ironing house that makes the cloths come alive are such
examples.
Media selection needs careful planning as it needs to cater to business

customers as well as individual customers.
b. Sales Promotion: Sales promotion needs to have the balance between

business customers and individual consumers. In the previous section,
we have studied about the sales promotions among the B2B consumers
and earlier in this chapter we have studied sales promotion more from
B2C perspective. Students may refer to it and gain essential idea about
sales promotion in service marketing.
c. Personal Selling: Managing sales promotions needs to be looked from

the perspective that there are few services which needs B2B Personal
selling (AC maintenance) and there are some which may need to handle
both nature of customers (Courier like DHL needs to service both the
nature of customers) and there are services which is rendered to final
consumers (Ironing, Doctor). We have studied personal selling under
industrial (B2B) products promotion mix. In other cases, mostly
customer will come to your place to seek the service. At this stage
personal selling plays crucial role. For your customer, what happens at
that point of time is a moment of truth and thus you must have trained
and skilled manpower, backed up by the technology support. They need
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to be well groomed, knowledgeable, able to explain, handle objection

and negotiate, if possible.
d. Public Relations: In service marketing, it is said that your service

must speak for itself. Thus, public relations and publicity plays the role
to lift what you are doing well. Besides this, it helps in establishing
brand and corporate image, highlight any corporate social responsibility
(CSR) activity being handled by you. Additionally, public relations need
to do things described earlier like liaise with government bodies,
stakeholders, investor relations, etc.
e. Direct Marketing: I wish to mention that direct marketing may be

useful, but it depends on nature of service you are in. When your
service starts speaking for itself, you will have nature word of mouth,
referrals-based business coming to you. Service provider like Richfeel
hair solutions may not be able to do direct marketing as he may have
profile of an individual but may not know his hair problems. Mass
service products again may reply on advertising. But Services like Kaya
Skin Clinic can do direct marketing as everyone desires to have young
look, smooth skin wrinkle free, etc. They may use it effectively to get
leads for their local stores.
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8.10 SUMMARY
As one of the P’s in the company’s marketing mix, promotion plays a

strategic role as against general myth that it is done when you are not able
to sell.
You do promotions to influence your target customers to buy from you.

There are types of promotions such as product, trade and institutional
promotions. Promotion mix is ‘The blend of several promotional tools used
by the business to create, maintain and increase the demand for goods and
services’. 5 elements of any promotion mix are advertising, sales
promotion, personal selling, public relations (and publicity) and direct
marketing.
We have covered in detail our understanding about the sales promotion,

personal selling, public relations and direct marketing. Advertising will be
separately covered in the other chapter.
Sales promotion is done due to various reasons such as retain existing

customers, pull new customers, outsmart competition, encourage trade
channels, increase footfalls, etc. Personal selling is all about face to face
interaction and ability of that individuals to talk about products,
differentiate it from the competition, handle objections and negotiation and
bring regular business. We have also covered numerous aspects of public
relations (and publicity) and direct marketing. We have also covered
promotion mix for the B2B industrial products and promotion mix in service
marketing.
We have studied multi-steps understanding about how to establish your

promotional mix – (a) determine your target market,(b) determine your
objectives, (c) design your message, (d) select your promotional channels,
(e) determine your budget, (f) determine your promotional mix and (g)
measure the results of the implemented program.
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1. What is promotion management under marketing? Additionally, briefly
explain its concept and salient features.
2. What is promotion mix under marketing? Explain its elements with
relevant examples.
3. What is sales promotion? Additionally, briefly explain its role and
fundamental focus to be considered during its planning.
4. List any five objectives of sales promotion and its advantages and
disadvantages.
5. Describe what is personal selling in the marketing of industrial motors.
6. What is direct marketing?
1. Promotions are not always for the sale – it may be for ________, first
trial, repeat purchase drive, loyalty recognition.
(a) Sales sustenance
(b) Lead generation
(c) Lead closures
(d) Post-purchase influence
2. Promotion refers to any type of _________ used to inform or persuade

target audiences of the relative merits of a product, service, brand or
issue.
(a) Sale communication
(b) Inducement trigger
(c) Compelling advertisement
(d) Marketing communication
3. _________ is used to create a favourable image for itself. The purpose

of this type of promotion is not to sell a specific product but to ‘sell’ the
company to potential consumers.
(a) Marketing promotion
(b) Sales promotion
(c) Institutional promotion
(d) Trade promotion
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4. ‘_________’ is the blend of several promotional tools used by the

business to create, maintain and increase the demand for goods and
services.
(a) Promotion Mix
(b) Marketing mix
(c) Product mix
(d) Sales mix
5. In a fiercely competitive market, it is required to provide enough

incentives to down-line channel members for purpose like improve their
return, push your product, and to develop sustained brand push and
volume sale. Such type of promotion is known as ___________.
(a) Product-specific sales promotion
(b) Push promotion
(c) Trade promotion
6. In one of the types of personal selling, person is an active personal

seller with involvement at all the stages of the entire purchase cycle –
handling requisition till finalizing a purchase order. He is identified as
____________.
(a) Order taker
(b) Order finalizer
(c) Senior manager
(d) Sales manager
Answers: 1. (b), 2. (d), 3. (c), 4. (a), 5. (c), 6. (b).
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REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
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MARKETING COMMUNICATION
Chapter 9
Marketing Communication
Objectives
• what is marketing communication
• different marketing communication media
• how to manage advertising campaign
• about digital marketing
• what is integrated marketing communication (IMC)
• about handling new product’s marketing communication
Structure:
9.1 Introduction
9.2 Salient Aspects of Marketing Communication
9.3 Factors Influencing Marketing Communication
9.4 Role of Marketing Communication
9.5 Marketing Communications Objectives
9.6 Marketing Communication Media
9.7 Managing Advertising Campaign
9.8 Digital Marketing
9.9 Integrated Marketing Communication (IMC)
9.10 Marketing Communication of a New Product
9.11 Challenges in Marketing Communication
9.12 Summary
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9.1 INTRODUCTION
Your target segment customers should come to know about the product
you offer, its features, its utility and other such information for him to
decide about its purchase. In order to achieve this, marketers need to
communicate with the target group audience. Marketers uses different
tools, medium, plans reaching maximum group members to generate
desired pull. This entire subject matter is known as ‘Marketing
Communication’.
What is Marketing Communication?
The Marketing Communication refers to the means adopted by the

companies to convey messages about the products and the brands they
sell, either directly or indirectly to the customers with the intention to
persuade them to purchase.
The marketer uses different mediums of marketing communication to

create the brand awareness among the potential customers, which means
some image of the brand gets created in their minds that help them to
make the purchase decision.
Marketing communication offer solutions to the following questions:
• Why shall the product be used?
• How can the product be used?
• Who can use the product?
• Where can the product be used?
• When can the product be used?
Marketing communication is also known as MarCom.
Marketing Communications can evoke emotions and are able to put

consumers in a more receptive frame of mind. It encourages purchases to
solve problems on one hand and avoid negative outcomes on the other
hand.
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Marketing Communication Process
Communication simply means passing the information from the sender to

the receiver. But in practice, this is a complex process that involves many
other factors. However, marketing legend Philip Kotler has given one of the
most effective models to define the marketing communication process as
follows;
Fig. 9.1: Marketing Communication Process
The diagram explains various components – first two components are

‘sender’ and ‘receiver’. Second two components are ‘message’ and ‘media.’
The other features of this model are ‘encoding,’ ‘decoding,’ ‘response,’ and
‘feedback.’ And, the last feature is ‘noise.’ Noise is random and other
competing messages that more often interfere with the communication.
This model emphasizes on the major key factors that play an important
role in effective communication. It is imperative to know the market
response and your target audience before you send any message.
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Tips for Effective Marketing Communications
Following are the important points that you need to take care of for
effective marketing communications.
• Persuasive Message: Different customers have different requirements

and expectations; therefore, it is very important to customize your
persuasive messages accordingly.
• Design: Every medium of communication (such as magazine,

newspaper, TV, digital media, or brochure) has its own design and
requirements. Therefore, you need to plan and design your messages
accordingly.
• Feedback: Must collect feedback from your audience; it will help you
improve your marketing communication.
9.2 SALIENT ASPECTS OF MARKETING COMMUNICATION
We will study certain essential aspects related to marketing

communication.
a. Designed for target segment: Marketing communication is expected

to develop favourable disposition about your product/inducement to try
your new products. Post various assessment you have decided that
specific target segment/s will give you numbers. Thus, it needs to
address them.
b. Designed to influence: Marketing communication is designed to

influence target segment/s to realize their latent need, better choice
available for satisfying existing need, new products available to satisfy
their ego/attitude need (hierarchy of needs), induce better usage (brush
twice daily for healthy teeth), influence unfavourable attitude towards
your product/brand and more.
c. Designed to reaffirm: Marketing communication is an ongoing activity.

While it is trying to get more new customers, it must continue to
reaffirm brand’s/product credibility and utility in the minds of existing
consumers.
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d. Media is your multiplier: Numerous media is available today

(traditional newspapers to advanced digital media). It is of paramount
importance that you choose right media, for which you need to know
more about it, users of media, reach of specific media among your
target segment/s, engagement possibilities it offers and more such
aspects to help you decide. Budget will always be limited and thus
selection of right media can be your success multiplier.
e. Engagement is critical: Marketing communication today can’t be

static to just convey new product arrival, USP, etc. It is essential today
to draw your target segment/s attention, engage them to find more,
repeatedly bring forward value you offer, attend to your call for action
and induce purchase.
After studying significance of marketing communication, we can

understand its importance better.
Importance of Marketing Communication
Fig. 9.2: Importance of Marketing Communication
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The sole purpose of marketing communication is to increase the volume of

sales by persuasive, informative, and positive messages. Marketing
communication provides new facts through encouraging messages about
products/services.
Marketing communications is meant to inform and persuade target

audience and reinforce market credibility.
9.3 FACTORS INFLUENCING MARKETING COMMUNICATION
A marketing manager from one company communicates with the target

segment/s using promotion mix studied earlier such as advertising, sales
promotion, personal selling, public relations and direct marketing. Under
each elements also there are several options available. How does
marketing manager shape up his entire marketing communication is a
result of various factors as explained below.
Fig. 9.3: Factors Influencing Marketing Communication
a. Budget availability: For many companies, the budget available to

market a product determines what elements of the MarCom mix are
utilized. The budget affects a MarCom’s reach (number of people
exposed to the message) and frequency (how often people are
exposed).
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b. Stage in the product life cycle: The stage in the PLC also affects the
type and amount of MarCom used. Products in the introductory stages
typically need a lot more budget to create awareness in the
marketplace. More communication is needed in the beginning and
growth phases of the product life cycle to build awareness, induce trial
and sustain repeat purchases.
c. Type of product and type of purchase decision: Different products

also require different types of promotion. Very technical products and
very expensive products (high involvement) often need professional
selling so the customer understands how the product operates and its
different features. By contrast, advertising is often relied upon to sell
convenience goods and products purchased routinely (low involvement)
since customers are familiar with the products and they spend relatively
little time making purchase decisions.
d. Target market characteristics and consumers’ readiness to

purchase: Target market characteristics involves understanding
segment, their need hierarchy state, attitudes, personality. Also, life
state he is in (married, retired?). Also, understand whom you will target
first (early adopters or laggards). This determines how will you reach
them. On the other hand, are your consumers ready to buy? For
example, are most college freshmen ready to purchase new cars?
e. Others: Factors like consumers’ preferences for various media

(traditional, digital, smartphones) availability of media, regulations and
other environmental factors influence MarCom decisions.
In a nutshell, many factors, such as a firm’s marketing budget, the type of

product, regulations, target customers, and competitors, influences the
composition of the MarCom mix. Depending on what medium is used,
marketers use the communication process to encode or translate ideas into
messages that can be correctly interpreted (decoded) by buyers. However,
marketers must determine how to get consumers’ attention and avoid as
much interference and noise as possible.
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9.4 ROLE OF MARKETING COMMUNICATION
In this section, we will understand the role of marketing communication.
Role of Marketing Communication
MarCom role covers following deliverables:
Fig. 9.4: Role of Marketing Communication
a. Voice of the company: The role here is to stimulate the dialogue that
will lead to a succession of purchase. This is achieved by pulling
information about the organization behind it, brand values, and image.
b. Contribute to customer equity: It’s a means by which an
organization can establish a dialogue and build long-term relationship
with the customers. It also strengthens customer loyalty.
c. Contribute to brand equity: It needs to create brand awareness,
position the brand appropriately, develop brand image in the consumers’
mind and promise what you fulfill to strengthen your brand.
d. Provide product information: Consumers can be engaged to provide
basic product information, competitive comparisons, how and why your
product is better, demonstrate the product and value you bring for
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customers is a critical pre-purchase role to lead consumer to buy your

product.
e. Lead to purchase: Ultimate role is to make consumer aware, informed
and induced to buy your product – may be for the first time, repeat
purchase, not buy competition product and more.
9.5 MARKETING COMMUNICATIONS OBJECTIVES
The basic objectives of marketing communication are:

(a) To Communicate
(b) To Compete
(c) To Convince
a. To Communicate: The primary purpose of MarCom is to communicate

ideas to target audiences. This is done through advertising, personal
selling, sales promotion, and/or public relations. Principles of effective
communication are intended to achieve this task. Moreover, whatever is
communicated should be accurate, truthful, and useful to the parties
involved. Because of the pervasiveness of marketing communication, it
has a unique responsibility to communicate with integrity.
b. To Compete: Helping the company to compete consistently and

effectively in the marketplace is the second objective. For many
companies, MarCom may offer the company its most promising
marketing opportunities. Competitors may sell essentially the same
product, at the same price, in the same outlets. It is only through
MarCom that the company may be able to appeal to certain segments,
properly differentiate its product, and create a level of brand loyalty that
can last for many years. In addition, the prominence of extensive
communication efforts on the part of competitors means that a company
that did not exhibit a strong MarCom program would appear dull and
unconvincing to the customer. Thus, MarCom is employed as both a
defensive and offensive weapon.
c. To Convenience: The final objective of MC is to convince. Although this

goal is most often attributed to MarCom, it is the most questionable.
"Convince" and "persuade" are not synonymous terms. Realistically,
MarCom does extremely well if it presents ideas in a manner that is so
convincing that the consumer will be led to take the desired action.
These ideas, along with a host of other factors, will help persuade the
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consumer to make a particular decision. Therefore, the ability of

MarCom to present information in a convincing manner is critical. It is
also necessary to re-convince many consumers and customers. Just
because a person buys a particular brand once or a dozen times, or
even for a dozen years, there is no guarantee that they will not stop
using the product if not constantly reminded of the product's unique
benefits. Ultimately, MarCom objectives can be broken down into very
specific tasks. The point is all MarCom must be guided by objectives.
In conclusion, effective marketing communication should present useful

ideas (information) in a manner that makes them clearly understood
(communicate), cause the consumer to believe the message is true
(convince), and is as appealing or more appealing than the message
delivered by competitors (compete).
9.6 MARKETING COMMUNICATIONS MEDIA

Marketing communication media is different for different MarCom Mix. It
essentially has various media under promotion mix namely advertising,
sales promotion, personal selling, public relations and direct marketing. It
also has other marketing approach specific media such as interactive
marketing can use chat box on websites and likewise. Following figure will
give you an idea about comprehensive MarCom mix (However, it is not
exhaustive).
Fig. 9.5: MarCom Mix
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We will briefly study above from marketing communication mix elements

from the angle of communication and not the promotions.
a. Advertising: Advertising is a marketing communication that employs

an openly sponsored, non-personal message to promote or sell a
product, service or idea. It’s a marketing communication, when received
by the recipients, it influences them leading to buying of your product/
service.
Advertising is: (a) designed to communicate with large audience, (b)

create brand awareness, (c) develop brand image, (d) achieve brand
differentiation and (e) launch new products.
Advertising media are classified broadly as: (a) Print media,

(b) Broadcast media, (c) Online media and (d) Digital media. Digital
media is further classified as: (i) Social media,
(ii) Professional media and (iii) Independent media. Following table will
give you better perspective:
Table 9.1: Advertising Media Classifications

Print media Broadcast media Online media Digital media
Daily newspapers Radio-AM Website-Company Social media
Financial Radio-FM Website-Business FaceBook
newspapers
Magazines TV-Terrestrial Blogs Instagram
Directories TV-Settelite RSS Twitter & Others
Catalogues Cable TV Search engines YouTube
Directories-Just Professional media
Dial
LinkedIn
Independent
media
Own APP
Aggregator APP
Others
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Advertising media must be carefully evaluated. It pursues media evaluation

model namely AIMRITE.
❖ A = Audience – does it reach the target audience?

❖ I = Impact – does it have the impact to ensure the message has a
chance of getting through?
❖ M = Message – does it ensure the message is clearly communicated?
❖ R = Response – does it make responding easy?
❖ I = Internal management – does it enhance the efficient management of
the campaign?
❖ E = The end response – costs and projected likely revenue
Advertising mediums are selected based on two critical parameters – (i)

Reach and (ii) Frequency. Reach refers to the number of people you
touch with (exposed to) your message. Frequency refers to number of time
you touch each person with your message. Due to the budget constraints,
it is always a challenge to balance between the reach and the frequency. It
is believed that certain frequency exposures are needed to get noticed,
then additional exposures to come in the consideration set and likewise for
ensuring call for action and final purchase.
b. Sales Promotions: We have earlier studied sales promotion as one of

the promotion mix elements. Here, we will take brief overview about it
as MarCom mix element.
Emphasis here is on communicating the offer in a way it induces the

individuals to act upon. When they feel like taking action, marketing
communication must offer practical and quick route/medium to reach the
brand – missed call, submission of forms, downloading the APP to get
free/subsidized service, besides rebates, discounts, paybacks, buy-one–
get-one free scheme, coupons, etc. are some of the sales promotion
tools.
Marketing communication must ensure utility of the tool selected, its

execution practicality and medium in which it is put.
c. Personal Selling: Marketing helps development of marketing

communications to aid personal selling – leaflets, brochures,
presentations, lead generation initiatives etc. All these is done keeping
in mind what product stands for, how it is different, customer value it
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offers
d. Public Relations: Need to decide what will be conveyed, how will it be

conveyed, what will rationalize your claim, how will you execute (one to
one interview or press conference or local releases. Also, besides
product, it needs to look at brand building through organizing
newsworthy initiatives like education donation, cleanliness drive, traffic
safety campaign, etc.
e. Direct Marketing: Today you can do direct marketing using any print
medium but also using broadcast medium, online medium and digital
platforms. What is important is to channelize data generated at various
customers’ touchpoints and create a next direct marketing campaign.
Marketing is responsible to develop the offer and its approach, reach,
delivery to identified individuals and offer exclusive, practical tool to act
instantly to grab your offer. Marketing communication can also play the
role of lead generation for various local brand outlets, request for demo,
up sale, cross sale using direct marketing.
f. Relationship Marketing: Marketing communication should be such

that it develops brand bonding, brand equity culminating into long-term
relationship. Also, it is not what you communicate but frequency at
which you communicate, how you communicate, communication
channels you provide to interact also matters.
g. Events: It covers company sponsored events. Several companies

sponsor the events such as sports, entertainment, nonprofit or
community events with the intention to reinforce their brand in the
minds of the customers and create a long-term association with them.
Choosing the right event is important but it is also crucial that what you
do other marketing communication activities surrounding the events.
h. Interactive Marketing: Interactive Marketing has recently gained

popularity as a marketing communication tool, wherein the customers
can interact with the firms online and can get their queries resolved
online. Most websites now a days also have chat box assistant, wherein
you are approached to discuss your need with trained executive on the
other hand, who can facilitate information sharing, objection handling,
emailing you relevant information thereby saving your time.
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i. Word-of-mouth Marketing: It is one of the most widely practiced

method of communication tool, especially on digital platform, wherein
customer share their experiences with their peers and friends about the
goods and services they bought recently. This method is very crucial for
the firms because the image of the brand depends on what customer
feels about the brand and what message he conveys to others.
Above mediums and tools are not exhaustive and they evolve over time.
Thus, marketing communication mix refers to the different tools that a firm
can adopt to inform, persuade, and remind the customer about the product
and services it sells.
Activity A
Take bath soap as a product, select specific media from the above and
articulate briefly various aspects considered by you for selecting a media,
how will you use it and for what will you use it?
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
9.7 MANAGING ADVERTISING CAMPAIGN
In this chapter of marketing communication, we will study the subject of

‘Advertising’ little more elaborately. It not only occupies the major chunk of
marketing budget and its success may either make or break the product.
Core Phases of Advertising
There are following three core phases involved in advertising.
a. Challenge Decoding: Here, marketing issue is analyzed and problem is

decoded to understand what is not working, why consumers are
resisting the product/offer, what is done by the competition which has
impacted you, which threat was ignored, life-cycle stage of the product
PLC is considered and more such assessment are made to understand
and articulate actual marketing problem. Proper decoding only will give
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you right marketing communication clue and medium selection vis-à-vis

other important factors like ‘Reach and Frequency’.
b. Strategy Development: Post decoding the challenge, you need to get

on with the tasks of handling other important strategic issues namely
development of advertising strategy. It consists of: (i) communication
strategy and (ii) media strategy. Strategy developed must get aligned to
marketing goals.
c. Execution and Response Monitoring: Execution is one of the crucial

factor wherein you need to decide numerous aspects like right time to
release, scheduling the releases, connecting dots vis-à-vis sequencing
print, broadcast, online and digital media releases and more such
operational issues. After execution, it is important to monitor the
response immediately after the execution starts, till campaign is over
and reasonable time post campaign is over to determine its success.
During the campaign run, it is done to ensure responses are received,
attended, media under-performing, etc. which will enable you to do
course corrections necessary. Post camping monitoring will help you to
assimilate importation as per the pre-decided success criteria and
compare its result against the target.
What is Advertising Campaign?
In simple term, it’s not one single release in an advertisement but series of
multiple releases, interlinked to achieve delivery of a core message either
using single medium or multiple medium is considered as ‘Campaign’.
A campaign is defined as a uni-focus, short-term marketing communication

program, making use of various mass media, aimed at a defined target
audience. In an advertising campaign, strategy is thus most important.
Without the strategy, you can’t interlink the communication and deliver the
message. As campaigns are cost intensive, it is important to plan to
precision to achieve the desired response.
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Effective campaign must answer 5W’s and 1H.

• Who? The target audience/segment
• What? What is to be said to elicit the desired response. What to say? It
includes the key communication proposition.
• Where? Where our target audience located, what media do they attend
to. It includes the media vehicles for the campaign.
• Why? The objectives of the campaign – both advertising and marketing
objectives.
• When? It decides the timetable. Some products are all season, while
others are seasonal. It includes the scheduling of the campaign.
• How? The crucial factor is the strategy. It is the art and science of
deploying available resources to attain objectives in the face of active
competition. Strategy needs to cover both creative and media angle.
Planning an Advertising Campaign
Following are the general steps in developing and implementing an

advertising campaign:
1. Identify and analyze target audience: It is essential to first define

(identify) your target audience. We have studied this aspect using
learning about the segmentation. After identifying your target audience,
you need to analyze them in terms of need state, need hierarchy,
buying behaviours, product diffusion and adoption that will work,
motivation and attitude, and communication influence.
2. Create advertising problem: We have studied about this in section

above 9.7 – Challenge decoding.
3. Define advertising objectives: Objectives always work as guiding

light and thus advertising objectives also needs to be defined. It will
enable you to then develop the strategies-communication and media.
Not only that, it allows you to measure the performance.
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4. Determine advertising budget: Defining advertising budget enables

you to maximize the effectiveness within the finite means! There are
three simple and popular methods to develop the advertising budget
and same is explained as follows:
a. Objective and Tasks Method: Here, you have objectives in front of

you. To achieve set objectives, you need to do certain tasks, with
specific intensity and frequency it needs. Now you can assign the
costs attached to doing each task with requisite intensity and
frequency.
b. Percentage of Sale: You have past sales and advertising spent of

the organization. You can apply this percentage to the future
predicted sale as per the marketing objectives set. Having done this,
you may consider industry average. You may be aligned or higher or
lower than the industry average. You may take the appropriate
decision to adjust your budget.
c. Competition Matching: It is also known as share of voice (SOV). In

a market with clutter, it is essential to maintain your level. Level
helps you to remain present in your target audience consideration
set. SOV typically referred to a brand’s share of paid advertising in a
competitive marketplace. You need to project industry volume, vis-à-
vis competition wise volume. Based on past spent by the competition,
one can determine, whether you have predicted right budget which
will maintain your share of voice or you have predicted higher
amount or lower amount. You may tweak your budget appropriately.
5. Develop Media Plan: You must develop a working media plan for your
business that will maximize your return on media investment (ROMI)
and enable you to achieve your marketing goals within your budget and
with a little “flexibility buffer” to change if one media channel under-
performs or another is a surprise success. Here are the five steps to a
working media plan;
a. Know your target audience: There’s no point in media buying if

that media doesn’t reach your target audience. You should have a
clear idea of your target market’s age, gender, income level, and
media habits – where they consume media during the day – before
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you spend a single rupees on advertising.
b. Define your media goals: You can’t measure the success or failure
of your media planning efforts unless you set clear goals from the
start. Perhaps you want a 3% conversion rate from media exposure
to actual sales. Perhaps you want 7% of people who see your
message to visit your site and sign up for your newsletter. Only by
knowing your goals can you measure whether your media plan is
performing as you wish.
c. Develop media strategy: In other words, it calls for determine the

perfect media mix. You need to plot channels (media) you wish to
use, reach you wish to achieve, frequency is needed to develop
awareness, interest in to action.
Table 9.2: Perfect Media Mix

Media type Spend %
Newspaper advertisement 4000000 66%
Magazine 1200000 20%
Online/Digital marketing 600000 10%
Social media 150000 2%
Radio 100000 2%
Total spend 6050000 100%
Above data can be matched to determine impact on business and return on

amount invested. Post which, you may tweak it as required.
6. Creating the advertising campaign: When developing the message,

the marketer must take into consideration several factors including:
a. Characteristics of the target audience: The makeup of the target
audience (e.g., age, location, attitudes, etc.) impacts what is
conveyed in the message.
b. Type of media used: The media outlet (e.g., television, digital,
print, etc.) used to deliver the message impacts the way a message
will be created.
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c. Product factors: Products that are highly complex require a

different message than simpler products. Additionally, the target
market’s familiarity with a product affects what is contained in a
message. For instance, a new product attempting to gain awareness
in the market will have a message that is much different than a
product that is well known.
d. Overall advertising objective: As mentioned, the objective of the
advertising campaign can affect the type of ad that is designed. For
example, an advertisement with the objective of stimulating
immediate sales for an existing product will be different than an
advertisement seeking to build initial awareness of a new product.
Advertising Message Structure
Most advertising messages share common elements within the message

including:
a. The Appeal: This refers to the underlying idea that captures the
attention of a message receiver. Appeals can fall into such categories as
emotional, fearful, humorous, and sexual.
b. Value Proposition: The advertising message often contains a reason

for customers to be interested in the product which often means the ad
will emphasize the benefits obtained from using the product.
c. Slogan: To help position the product in a customer’s mind and

distinguish it from competitors’ offerings, advertisements will contain a
consistent phrase or group of words marketers include within their
promotional message that is repeated across several different messages
and different media outlets.
7. Executing the campaign: Execution of campaign may sound like

routine tasks, but it is not. It is more a managerial challenge where you
need to ensure campaign release materials are ready in time (TVC,
newspaper ads, etc.), they are sent to media houses for reproduction,
releases, ensuring its release happen as planned and communication
about the campaign to all the stakeholders.
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8. Evaluate advertisement effectiveness: Post completion of the

campaign and completion of post-campaign sufficient period, various
data are assimilated and compared against the revenue v/s investment
or ROI in simple term. Learnings are noted for its inclusion in the future.
Understanding of above eight steps helps one to plan the advertising

campaign effectively.
9.8 DIGITAL MARKETING
What is Digital Marketing?
Digital marketing encompasses all marketing efforts that use an electronic

device or the internet. Businesses leverage digital channels such as search
engines, social media, email, and other websites to connect with current
and prospective customers.
Digital marketing is defined by the use of numerous digital tactics and

channels to connect with customers where they spend much of their time:
online. From the website itself to a business's online branding assets –
digital advertising, email marketing, online brochures, social media, APP
and beyond – there's a spectrum of tactics that fall under the umbrella of
"digital marketing”.
The best digital marketers have a clear picture of how each digital
marketing campaign supports their overarching goals. And depending on
the goals of their marketing strategy, marketers can support a larger
campaign through the free and paid channels at their disposal.
Why Digital Marketing?
While traditional marketing might exist in print ads, phone communication,

or physical marketing, digital marketing can occur electronically and online.
This means that there are a number of endless possibilities for brands
including email, video, social media, or website-based marketing
opportunities.
a. Has so many options and strategies associated for you to evolve, decide
and implement.
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b. You can use for different consumer buying stages and for different
purpose – awareness, interest.
c. There are a number of endless possibilities for brands including email,
video, social media, or website-based marketing opportunities.
d. Budget assigned is flexible and can be changed in favour of more
responsive medium/campaign.
e. You can use tools like analytics dashboards to monitor the success and
ROI of your campaigns
Digital Marketing Tools
Following are few digital marketing tools (List may not be exhaustive).
a. Search Engine Optimization: This is the process of optimizing your

website to "rank" higher in search engine results pages, thereby
increasing the amount of organic (or free) traffic your website receives.
The mediums that benefit from SEO include websites, blogs, and info-
graphics.
You may do either On-page, Off-page or technical SEO. On-page SEO

focus on page wise, Off-page SEO focuses on external linking and
technical SEO looks at technicalities of creating website, blogs etc. in an
appropriate manner.
b. Content Marketing: It means the creation and promotion of content

assets for the purpose of generating brand awareness, traffic growth,
lead generation, and customers. The channels that can play a part in
your content marketing strategy include:
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i. Blog post: Writing and publishing articles on a company blog helps

you demonstrate your industry expertise and generates organic
search traffic for your business. This ultimately gives you more
opportunities to convert website visitors into leads for your sales
team.
ii. eBooks and whitepapers: eBooks, whitepapers, and similar long-

form content helps further educate website visitors. It also allows you
to exchange content for a reader's contact information, generating
leads for your company and moving people through the buyer's
journey.
c. Social Media Marketing: This practice promotes your brand and your
content on social media channels to increase brand awareness, drive
traffic, and generate leads for your business. The channels you can use
in social media marketing include Facebook, Twitter, LinkedIn,
Instagram, Snapchat, and Pinterest.
d. Pay Per Click (PPC): PPC is a method of driving traffic to your website
by paying a publisher every time your ad is clicked. One of the most
common types of PPC is Google Ads, which allows you to pay for top
slots on Google's search engine results pages at a price "per click" of
the links you place. Other channels where you can use PPC include
Facebook, LinkedIn, Twitter, etc.
e. Affiliate Marketing: This is a type of performance-based advertising

where you receive commission for promoting someone else's products
or services on your website. Affiliate marketing channels include –
Hosting video ads through the YouTube Partner Program or Posting
affiliate links from your social media accounts.
f. Native Advertising: Native advertising refers to advertisements that

are primarily content-led and featured on a platform alongside other,
non-paid content. It is possible on variety of mediums including social
media.
g. Others: Other mediums include email marketing, Online PR, inbound

marketing, etc.
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Purpose for Which Digital Marketing is Used
Digital marketing is used for the following important purpose, which itself
is its utility as well.
a. Awareness Creation: With multiple methods and tools, and its
delivery nods are in front of the recipient (smartphones, TAB, laptops
and more), you are in a much better position to create wide scale
awareness among your profiled target groups.
b. Interest: With enormous possibility of creative content development
and delivery, you are in a much better position to develop greater
interest in your product/service.
c. Desire: Through video streaming, paid partnerships, key words
association, you are able to come more frequently in front of your target
groups and seeking very engaging content, recommendation,
testimonials etc., you are able to convert his interest into desire.
d. Action: Through continuous feeds on product, utility and usage
demonstration, you are able to make your target groups take desired
call for action. It is easy to build-in desired call for action – go to
website, fill form, inform desire for demo, test drive, etc.
e. Traffic Management: Digital marketing mediums offer you real time or
post period data about the hit rates, traffic, utilization of call for action
option etc., which enables you to pull back your budget resource from
ineffective medium to more effective medium.
f. Big Data to Understand Consumer Buying Behaviour: At every
digital touchpoints, digital medium generates so much of real time data,
study of which can reveal for you consumers’ buying behaviour based
on which future strategy/tactics can be worked out to improve hit rate,
leads generation and improve ROI.
Activity B
Plan a digital marketing campaign based on above and suggest purpose for
which specific digital media is selected.
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
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9.9 INTEGRATED MARKETING COMMUNICATION
After understanding what marketing communication and mediums under it,

especially advertising in detail, it is essential to understand what is
‘Integrated Marketing Communication (IMC)’.
Before Integrated Marketing Communication
The dramatic changes in the field of marketing communications over the

last two decades have challenged marketing communicators to use
communications methods that will:
• Breakthrough the communications clutter in the marketplace
• Reach audiences with interesting and persuasive messages
• Assure that MarCom investments yield an adequate return on investment
Earlier, the promotional tools were seen as separate functions that were
handled by separate departments.
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This led to un-coordinated/inconsistent communication. As you can see in

the above two advertisements – one by the company is launching a new
energy efficient bearing but at the same time, one of the local distributor
releases the range advertisement.
What is Integrated Marketing Communication?
Instead of a functional approach (sales, marketing or network

communication), IMC attempts to integrate these functions into a collective
strategy. If conducted properly, IMC results in a more effective
achievement of an organization's communications objectives.
When you achieve coordinated communication concept, you have practiced

INTEGRATED MARKETING COMMUNICATIONS (IMC). Harmony
between different media channels/promotional mix is essential to deliver
one message IMPACTFULLY. Overall, all the messages from the
organization tell the same story.
Following pictorial representation clearly articulates for you that instead of

considering advertising, PR, internet marketing solutions, events etc., as
separate platforms, one can integrate it and consider it as a lever to utilize
the positive aspects of each one of them to achieve communication goals.
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Under IMC, in a following ways, mediums can be utilized:

• Advertising can be used for building awareness
• Sales Promotions to generate inquiries
• Direct mail for providing info/knowledge sharing
• Personal selling to complete the transaction
IMC brings synergy to create competitive advantage, boost inquiries and

sale. Under IMC, unified message has more impact and is able to cut
through the noise of thousands of message across several communication
tools.
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However, IMC limits creativity, need different promotional mix to do specific

task thus needs more budget, cross functional thus speed of response is
slower, develops ownership and responsibility trap, if roles and
responsibilities are not assigned. Integrated marketing communication
(IMC) is thus considered as a move towards fully integrating all business
practices that communicate something about a company’s brands to
present or prospective customers.
Key Changes in MarCom from the IMC Perspective

• Reduced dependence on mass-media advertising
• Increased reliance on highly targeted communication methods
• Expanded efforts to assess communications’ return on investment
Benefits of IMC
Following are key benefits of IMC:
• It promotes customer focus.
• It leads to a recognition of all audiences.
• It also means clear objectives are set.
• It encourages consideration of full range of media vehicles.
• It can use full range of communication methods.
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In a nutshell, IMC synergizes the communication and creates a harmony of

message released on different media/tools so as to get customer attention,
deliver single message impact fully so as to make him act and buy your
product/services.
9.10 MARKETING COMMUNICATION OF A NEW PRODUCT
Salient Aspects of New Product’s Marketing Communication
Marketing communication for any new product is very critical and different
thus needs to be understood. The introduction of a new product is vital to
both, consumers and marketers – for the consumer, new products
represent an increased opportunity for better satisfaction of personal,
social and environmental needs. For the marketer, new products provide an
important mechanism for keeping the firm competitive and profitable.
Any discussion on the new product’s marketing communication involves

two closely related processes – the diffusion process and adoption process.
Diffusion is a process concerned with the spread of a new product from its
source to the public who would like to consume it. Adoption is a process
that focuses on the stages through which an individual consumer passes in
making the decision to accept or reject a new product.
The Diffusion Process
The diffusion process understanding covers how innovations spread within

a market. Diffusion is thus a process by which the acceptance of an
innovation (a new product, new service, new idea) is spread by the
company (an innovator) to the society as a social system (a target market)
by using communication channels (mass media, salespeople, promotions)
over a period of time. In other words, diffusion process has four basic
elements – (a) the innovation, (b) the social system, (c) the channels of
communication and (d) time.
Marketing must understand the classification of innovation – firm-oriented,

product-oriented, market-oriented, and consumer-oriented. Marketing
communication must consider above aspects as it impacts its diffusion and
acceptance. All new products may not have an equal probability of
consumer acceptance. Some get fast acceptance (Maggie noodles), some
take time (Rice bran oil).
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While developing marketing communication, marketers must consider key

findings of various diffusion research which suggest that five characteristics
influences consumer acceptance of new products – (a) relative advantage,
(b) compatibility, (c) complexity, (d) trial-ability and (e) observability. It
needs to be decided that which angle will make them accept your
communication quickly.
Marketing communication need to also handle resistance to new product

adoption. Diffusion researchers have developed a model of innovation
resistance to provide further insights into adoption and diffusion processes.
It indicates aspects like (a) Low perceived relative advantage, (b) Low
perceived compatibility, (c) Low trial-ability, (d) Low communicability and
(e) High complexity. Marketers’ task doesn’t end at knowing the factors for
resistance. They in fact need to develop strategies to overcome known
factors from known sources of resistance. Post understanding reason for
resistance, marketing communication must release communication which
will correct the perception, reduce resistance in a manner that person
becomes willing to try your product. If we found some risk barrier as a
reason for resistance, communication strategy could be to elicit
endorsements and testimonials.
The Adoption Process
Products are adopted by individual adopters. However, all adopters are not
same. There are classifications like innovators, early adopters, early
majority, late majority and laggards. Marketers must understand not only
whom they are communicating with but what matters to them. Example:
To innovator, you must convey tech specs, tech superiority, how this
innovation will change the life of consumers, superiority over competition is
established with facts.
It is found post research that a consumer moves through five stages in

arriving at a decision to purchase or reject a new product, namely (a)
Awareness, (b) Interest, (c) Evaluation, (d) Trial and (e) Adoption (or
rejection). Marketing communication needs to address one of the above
aspect primarily with other aspect may be as a secondary aspect such as it
can primarily focus to develop interest with secondary aspect as trial of the
product.
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We have understood how complex the marketing communication for new

product is. With in-depth understanding of above dimensions, one can
handle it appropriately.
9.11 CHALLENGES IN MARKETING COMMUNICATION
We will study this section from the perspective of integrated marketing

communication (IMC). Following are the challenges of marketing
communication under IMC.
a. Unification of problem definition: In a dynamically competitive

market, different markets may have different problems and challenges –
penetration, defending or market development as the case may be.
Fructifying results using IMC is possible in unified problem definition can
be developed. Separate focus may need additional loop to the existing
IMC program, needing more budget at the cost of effectiveness. Unified
problem definition will allow optimizing the budget yet resulting in
effective outcome.
b. Setting common goals: IMC stands for unified communication across

multiple media and across different functions including sales and
network. When sales division wants sales promotion specific MarCom
during Diwali festival, marketing can’t say it’s time for brand building.
When company launches new automobile, network can’t release major
discount offer on older variant. Setting common goals thus is the top
challenge.
c. Setting weightage for MarCom mix elements: It is critical that

proper weightage is derived vis-à-vis elements of MarCom mix namely
advertising, sales promotion, personal selling, public relations, and
direct marketing. Problem gets compounded, if common goals are not
set, which will lead to ineffective spend on certain elements.
d. Unifying multiple consumer touchpoints: Today’s consumers have

not only changed their preference of specific touch points (instead of
shops, not they can see demo on YouTube), they have multiple options
to choose from, multiple media vying for his attention, increased clutter
etc., need proper understanding and unification to touch the consumer
at the right place at the right time.
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e. Merging technology: Multiple touchpoints and multiple technology

(smartphones, QR code scanner, RFiD, APPS, GPS, website clicks), etc.
generates huge data. Unifying data collected from each channel and
reaching prospective customers with right information at the right time
is a must to ensure that integrated marketing program makes sense for
any organization. If the organizations do not have the necessary
technology to tie the data together, results are naturally limited.
Challenges can be minimized based on organization’s orientation towards

the consumers. We have earlier studied that organization, which is fully
marketing oriented, wherein marketing function owns the responsibility
to bring consumer needs inward and develop product to fulfill need. Such
an organization can gain maximum using IMC.
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9.12 SUMMARY
The Marketing Communication refers to the means adopted by the

companies to convey messages about the products and the brands they
sell, either directly or indirectly to the customers with the intention to
persuade them to purchase. The marketer uses different mediums of
marketing communication. Marketing communication follows specific
process which has sender’s field of experience and receiver’s field of
experience. Critical aspect of ‘Noise’ and ‘Feedback’ from receiver is
important and channel used must be free from the noise and facilitates the
feedback.
Marketing communication is designed for target segment, designed to

influence and designed to reaffirm. For the effective marketing
communication media is your multiplier and engagement are critical. Role
of MarCom starts as voice of the company till it leads to the purchase.
Objective of MarCom is to communicate, to compete and to convince.
MarCom can utilize media/channels such as advertising, sales promotion,

personal selling, public relations, direct marketing as well as facilitate
relationship marketing, events, handle interactive marketing and word of
mouth marketing. Managing advertising involves challenge decoding,
strategy development and execution and response monitoring.
We have also studied 8 steps involved in developing an advertising

campaign. We have covered various aspects of digital marketing such as
SEO, content marketing, social media marketing, pay per click, affiliate and
native marketing.
We have learnt about integrated marketing communication (IMC). When

you achieve coordinated communication concept, you have practiced
INTEGRATED MARKETING COMMUNICATIONS (IMC). Harmony between
different media channels/promotional mix is essential to deliver one
message IMPACTFULLY. Overall, all the messages from the organization tell
the same story. We have obtained the idea about marketing
communication handling for a new product. We also studied various
challenges involved in handling marketing communication.
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1. What is marketing communication? Explain including its role, objective
and factors influencing it.
2. Explain key aspects and perspective of different marketing
communication media.
3. How will you plan your advertising campaign?
4. Explain what is digital marketing including different tools.
5. What is integrated marketing communication? List its benefits also.
6. What are the challenges in marketing communication?
1. Various important points that you need to take care of for effective
marketing communications are: (i) persuasive message, (ii) design and
(iii) __________.
(a) Offer
(b) Call for action
(c) Feedback
2. Three core objectives of marketing communications are: (i) to

communicate, (ii) to compete and (iii) to ________.
(a) Sell
(b) Compare
(c) Call for action
(d) Convince
3. Advertising media must be carefully evaluated. It pursues media

evaluation model namely AIMRITE, where R stands for ________.
(a) Result
(b) Response
(c) Reach
(d) Reality
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4. Any advertising message structure will have three elements namely (i)
an appeal, (ii) ______ and (iii) slogan.
(a) Value proposition
(b) An offer
(c) Inducing body copy
(d) Call for action
5. In marketing communication, when you achieve co-ordinated

communication concept, you have practiced _________.
(a) Interlinked marketing communication
(b) Involving marketing communication
(c) Integrated marketing communication
6. The new product’s marketing communication involves two closely

related processes – the _____ and adoption process.
(a) Development process
(b) Delivery process
(c) Dynamic process
(d) Diffusion process
Answers: 1. (c), 2. (d), 3. (b), 4. (a), 5. (c), 6. (d).
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REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
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DYNAMICS OF PLACE IN MARKETING
Chapter 10
Dynamics Of Place In Marketing
Objectives
• the significance of place and distribution in marketing
• different channels of distribution
• channel specific decisions involved
• different channels and how to manage them
Structure:
10.1 Introduction
10.2 Importance of Distribution in Marketing
10.3 Channels of Distribution
10.4 Making Channel Decisions
10.5 Distribution Channel Management
10.6 Emerging Different Channels of Distribution
10.7 Role of Channels of Distribution
10.8 Summary
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10.1 INTRODUCTION
If you've ever, say, been to a sports items store and, while paying for your
cricket kit, purchased a bottle of Energy Drink for daily use on the
suggestion of the floating salesman, then you've been affected by one of
the marketing mix. The product (energy drink) satisfies your need for the
stamina building for your career in cricket. The energy drink’s price is low
enough to warrant purchasing but not so low that the company will not
gain profit; the network got its commission. The sales staff promoted the
item that led to the sale; and the placement of the product (in line at the
sports items store) is convenient and ideal. The four P’s of the marketing
mix all work together in the development of a marketing strategy;
however, in this lesson, we'll focus specifically on place, also called
distribution.
Place is thus defined as the product’s proper distribution and ensuring

availability at a convenient location at the right time.
Place in the Marketing Mix
As we've understood, place is the element of the marketing mix that

ensures that the product is distributed and made conveniently available for
the consumer – at the right location at the right time. It is imperative that,
when the consumer comes into the store to purchase a product, that
product is readily available without any issue. Whenever consumers are
faced with issues involving the availability of a product, it is almost certain
that they will take their business somewhere else. This is why it is so
important that the product makes it to the right place at the right time.
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10.2 IMPORTANCE OF DISTRIBUTION IN MARKETING
Understanding Place as a Distribution Catalyst
Place decisions outline where a company sells a product and how it delivers
the product to the market. The goal of business executives is to get their
products in front of the consumers most likely to buy them.
Place is the element of the marketing mix that ensures that the product is
distributed and made conveniently available for the consumer at the right
location at the right time.
In some cases, this may refer to placing a product in certain stores, but it
also refers to the product's placement on a store's display. In some cases,
placement may refer to the act of placing a product on TV shows, films or
web pages to garner attention for the product, but this placement overlaps
with the promotion.
We must have observed that items like toothpaste, soaps are available
most close to us including paan shops, general stores as against this, for
buying a luxury car, jewelry is not available close to us and their show
room are large, set with specific branding and identity elements in place.
Have we wondered why?
It is one thing having a great product, sold at an attractive price. But what
if:
• Customers are not near a retailer that is selling the product.
• A competing product is stocked by a much wider range of outlets.
• A competitor is winning because it has a team of trained distributors or
sales agents who are out there meeting customers and closing the sale?
You can see from the above that getting distribution right is a key part of
being competitive.
Distribution is achieved by using one or more distribution channels,

including:
• Retailers
• Wholesalers
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• Distributors/Sales Agents
• Direct (e.g., via e-commerce)
Importance of Distribution (Place)
a. Reaches the goods: Place where your product will be available and
kind of shop, set up expected, etc. are helping you to reach the goods,
where there is a market, you wish to develop market (rural market,
international market), capture the market (by opening more outlets of
different types).
Reach also acts as a deterrent for new entrant. New entrant may not be
able to match your wide and deep distribution network and thus may not
be able to compete well.
b. Proximity to your consumers: There are certain items which needs to

be closer to consumers. Items like toothpaste, toothbrush, soaps,
consumables we need most close to us, then little away your family
medical store, your vegetable vendor, at a distance may be your tailor
then few kms. away your car distributor and list goes on.
Proximity of goods availability play a very important role. Items without

involvement, proximity is very important. If Tata Salt is not available,
you will buy Annapurna salt but if specific model of Dell laptop not
available at one of his authorized show room, you will search other and
go there as it is an item purchase where you wish to personally get
involved.
In B2B, you need to be where your business is. Courier company will do
better, if it has office/pick-up point in industrial area, beauty parlors
need to be in residential area.
c. Easy introduction and communication: If your product is present at

the right place, it is easy to introduce it. New biscuit flavour, new ketch-
up variety, etc., if available at the general stores, its introduction is easy
as you will be able to put up marketing communication tools there such
as dangler, poster, back lit, store display, etc. Thus, it facilitates easy
product introduction and communication and may minimize your
marketing spend.
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d. Offers possibility of engagement: Availability of the product at the

right place offers an opportunity for engagement. Right from product
testing, demo, sampling, touch and feel, and today’s digital engagement
are possible if product is available at the right place.
e. Assures promotion success: Close proximity of outlets where your

product is available or your company outlets, assures the possibility of
successful promotion. Promotions needing exchange of coupons, paper
cut-outs, 50% discount on your exclusive stores or sampling and
likewise may become successful if consumers have a proximity of
location, else he will drop the idea.
f. Provides exclusivity: For certain items purchase like jewelry, clothing,

luxury cars, full range availability etc. consumers expect exclusivity.
Exclusive show rooms are the result of such needs. Also, for items like
mobile, etc., you may find number of stores all around us but when you
go to check, whether full range is available, most will tell you NO. They
only store fast moving range. Thus, exclusive stores offer an
opportunity for consumer to check your full range of product.
g. Helps to develop exchange business: In a world where aspirations

are growing exponentially, there is a market also for exchange and
secondhand goods. Most original equipment manufacturers be it
automobile maker or refrigerator manufacturers, or TV maker, they
provide exchange offer. Exchange is promoted to ensure that consumer
do not continue to use old models very long and buy same company’s
new product.
h. Provides up sale/cross sale business opportunity: If you have

sound CRM or practicing direct marketing, your place, distribution centre
offers you an opportunity to up sale and cross sale the product among
the existing customers. Locally, it is presumed that local distributor,
store will know their consumers or you have data base architecture,
which lets you know the age of the product, which can be utilized by
informing your local store to connect with such customers to propose
upsell/cross sale options.
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Strategic Importance of Distribution in a Competitive Marketing

Environment
Any marketing organization, be it purely manufacturing based, or

completely of a trading type, or a mixture of both, makes its profits
through a combination of the following activities:
SALES ` REVENUE
Less: Cost of Sales ` COGS
Gross Margins ` GM
Less: Selling/ ` SDMAC
Distribution/Marketing
costs
Net Margins ` NM
If we analyze the above structure carefully, we shall find that Sales is a

function of Volume × Net Realization.
While: Volume is dependent on Marketing Inputs, viz., Advertising,

Promotions, and Sales Efforts, Net Realization is dependent on price, taxes,
and levies.
Cost of Sales is an aggregate of Cost of Production (dependent on

Prime Costs, costs of manufacturing processes) or on Costs of
Procurement (in case of Traded Items) plus all transport/ handling/
storage costs incurred up to the Point of Sale, and Selling,
Distribution, and Marketing costs are dependent on the extent,
spread, and intensity of the activities involved. In the current context of
globalization,
• when the world has become one big market,

• when competition is forcing consumer prices down and down,
• when to secure and retain the mind space of consumers, advertising
spends have to keep on increasing, consumers have to be constantly
indulged with promotions, costs of inputs keep on increasing either due
to costs going up, or demand for inputs increasing at a faster pace as
compared to the supply of inputs, there are the following areas
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which afford some scope for reducing costs and thereby

increasing profitability.
a. Process optimization be it in manufacturing operations, i.e., better

capacity utilizations, or in procurement by better deals, linking with bulk
procurements.
b. Optimization of Transportation, by better capacity utilization, or rather
by eliminating avoidable duplication of transportation efforts, moving
more and more of materials through Bulk Loads, where per unit
transport rates would be lower than transportation by Part Loads.
c. Locating Distribution Centers in a way as to reduce the total
transportation costs by optimization of movement of finished goods up
to the endpoint of the supply chain.
d. Reducing the overall Inventory in the Supply Chain by better Inventory
Planning.
e. Improving the turnaround of Inventory by reducing the overall
transportation time and thus reducing the time of the ‘Planning Cycle’ as
well as ‘Lead Times’.
f. Efficient Distribution Management thereby reducing the need for buffer
stocks to avoid stock-out situations.
g. Increasing customer service levels by efficient order processing and
delivery times and all the above areas come under the ambit of
Distribution-cum-Logistics-cum-Supply Chain Management and therein
lies the importance and scope of this stream of management subject.
Activity A
Consider that you are entrusted with the responsibility to develop channel
strategy for Alexa smart speakers. Consider all above points of importance
and list your reading/understanding for Alexa Smart speakers.
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
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10.3 CHANNELS OF DISTRIBUTION
In this section, we will learn about the different channels of distribution.
Channel of Distribution
There are four main types of distribution channels. These are as follows:
(a) Direct distribution channel
(b) Indirect distribution channel
(c) Dual distribution channel
(d) Reverse distribution channel
a. Direct Distribution Channel: In this channel, the manufacturer

directly provides the product to the consumer. In this instance, the
business may own all elements of its distribution channel or sell through
a specific retail location. Internet sales and one on one meetings are
also ways to sell directly to the consumer. One benefit of this method is
that the company has complete control over the product, its image at all
stages and the user experience.
b. Indirect Distribution Channel: In this channel, a company will use an

intermediary to sell a product to the consumer. The company may sell to
a wholesaler who further distributes to retail outlets. This may raise
product costs since each intermediary will get their percentage of the
profits. This channel may become necessary for large producers who sell
through hundreds of small retailers.
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c. Dual Distribution: In this type of channel, a company may use a

combination of direct and indirect selling. The product may be sold
directly to a consumer, while in other cases it may be sold through
intermediaries. This type of channel may help reach more consumers
but there may be the danger of channel conflict. The user experience
may vary and an inconsistent image for the product and a related
service may begin to take hold.
d. Reverse Distribution: The last, most non tradition channel allows for
the consumer to send a product to the producer. This reverse flow is
what distinguishes this method from the others. An example of this is
when a consumer recycles and makes money from this activity. Indian
government under consideration of environment protection has
indicated certain industries to consider reverse cycling and if not done,
they may all together face the ban.
Importance of Intermediary in Distribution
Situation of Three Suppliers, Three Items and Three Procurers
Fig. 10.1: Importance of Intermediary in Distribution
Above is the example of number of transactions it may take if there are

three manufacturers, producing three different items supplying to three
procurers. In first case, there will be 9 transactions vis-à-vis if intermediary
comes into picture, it will get reduced to 6 transactions.
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Distribution Channel Intermediaries: Intermediaries are middlemen

who play a crucial role in the distribution process. These middlemen
facilitate the distribution process through their experience and expertise.
There are four main types of intermediaries:
a. Agents: The agent is an independent entity who acts as an extension of

the producer by representing them to the user. An agent never actually
gains ownership of the product and usually make money from
commissions and fees paid for their services.
Fig. 10.2: Various Distribution Channels
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Above images represent three different types of business models namely

(a) Consumer goods, (b) Business goods and (c) Service goods.
b. Wholesaler: Wholesalers are also independent entities. But they

actually purchase goods from a producer in bulk and store them in
warehouses. These goods are then resold in smaller amounts at a profit.
Wholesalers seldom sell directly to an end user. Their customers are
usually another intermediary such as a retailer.
c. Distributors: Similar to wholesalers, distributors differ in one regard. A

wholesaler may carry a variety of competition brands and product types.
A distributor, however, will only carry products from a single brand or
company. A distributor may have a close relationship with the producer.
d. Retailers: Wholesalers and distributors will sell the products that they
have acquired to the retailer at a profit. Retailers will then stock the
goods and sell them to the ultimate end user at a profit.
Functional Channel Intermediary
Apart from direct channel intermediary, there are few functional channel
intermediaries as below:
Contacting Knows who is the customer, where is he
Transactional Promoting Connects with customers, store display
Functions Negotiating Best knows local going rate, disposing old
Risk Taking During new product launch, promotion
Receiving Inward receipt of finished goods

Logistical Storing Staking in a right manner
Functions Sorting Order sorting
Distributing Actually sending goods
Facilitating Researching Product needs, buying behaviours

Functions Financing Inventory finance, working capital
Fig. 10.3: Functional Channel Intermediary
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Transactional Functions like contacting, maintaining relationship, and

promoting the product, negotiating the price (even at the cost of his
margin) and taking risk to grow business is done by the distribution
channel intermediaries as covered above like agent, wholesaler, retailers,
etc.
Logistics Functions like receiving, storing and distributing the goods are
looked after by functional channel intermediaries like logistics service
provider, warehousing companies, etc. They help you to maintain enough
channel goods flow to ensure continuous availability of your products.
Facilitating Functions like marketing research, financing the business is

handled my such facilitating agencies like research companies, banks,
advertising agencies, etc.
10.4 MAKING CHANNEL DECISIONS
In this section, we will understand various channel specific decisions under

marketing. Wish to make you understand that overall channel running
comes under sales but macro-level channel types, set up and such aspects
are under the preview of marketing. From that perspective, we consider
following decision areas.
Setting Goals and Direction
a. The first step to deciding the best distribution channel to use, a

company needs to:
(i) Analyze the customer and understand their needs
(ii) Discuss and finalize channel objectives
(iii) Work out distribution tasks and processes.
b. Some key questions to ask in finalizing these three areas

include:
i. Where do users seek to purchase the product?
ii. If it is a physical store, is it a supermarket or a specialist store? Is
it an online store or a catalogue?
iii. What is the access available to the right distribution channels?
iv. What are competitors doing? Are they successful? Can best
practices be used in making channel decisions?
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Selecting Distribution Strategies
A company may need to use different strategies for different types of

products. Three main strategies that can be used are:
a. Intensive Distribution: This strategy may be used to distribute lower

prices products that may be impulse purchases. Items are stocked at a
large number of outlets and may include things such as mints, gum or
candy as well as basic supplies and necessities – FMCG product.
b. Selective Distribution: In this strategy, a product may be sold at a

selective number or outlets. These may include items such as
computers or household appliances that are costly but need to be
somewhat widely available to allow a consumer to compare – cloths,
FMCD products, etc.
c. Exclusive Distribution: A higher priced item may be sold at a single

outlet. This is exclusive distribution. Cars may be an example of this
type of strategy.
Issues Influencing Channel Strategy
Issues that influence channel strategy are two-fold as follows:
(a) Factors affecting channel choice

(b) Distribution intensity
Fig. 10.4: Issues Influencing Channel Strategy
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a. Factors affecting channel choice: This includes market factors

(regional, national, international, competition intensive), product factors
(perishable or durable, fast-moving or demand dependent, low-
involvement or high-involvement), and producer factors (established,
new entrant, deep pocket or channel sustenance capability).
b. Distribution intensity: We have studied earlier what is intensive

(FMCG), selective (clothing, medicines) and exclusive distribution
(jeweler, cars, hi-end watches).
Assessing Benefits of Distribution Channels
While making channel decisions, a company may need to weigh the

benefits of a partner with the associated costs. Some potential benefits to
look out for include:
a. Specialists: Since intermediaries are experts at what they do, they can
perform the task better and more cost-effectively than a company itself.
b. Quick exchange time: Being specialists and using established
processes, intermediaries are able to ensure deliveries faster and on
time.
c. Variety for the consumers: By selling through retailers, consumers
are able to choose between a varieties of products without having to
visit multiple stores belonging to each individual producer.
d. Small quantities: Intermediaries allow the cost of transportation to be
divided and this in turn allows consumers to buy small quantities of a
product rather than having to make bulk purchases. This is possible
when a wholesaler buys in bulk, stores the product in a warehouse and
then provides the product to retailers located close by at lower
transportation costs.
e. Sales creation: Since retailers and wholesalers have their own stakes
in the product, they may have their own advertising or promotions
efforts that help generate sales.
f. Payment options: Retailers may create payment plans and options for
customers allowing easier purchases.
g. Information: The distribution channel can provide valuable information
on the product and its acceptability, allowing product development as
well as an idea of emerging consumer trends and behaviours.
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Assessing Possible Channel Costs
With the benefits in mind, here are some costs that a producer may have
to weigh in order to make channel decisions
a. Lost revenue: Because intermediaries need to be either paid for their

services or allowed to resell at a higher price, the company may lose out
on revenue. Pricing needs to stay consistent, so the company will have
to reduce its profit margin to give a cut to the intermediary.
b. Lost communication control: Along with revenue, the message being

received by the consumer is also in the hands of the intermediary. There
is a danger of wrong information being communicated to the customer
regarding product features and benefits which can lead to
dissatisfaction.
c. Lost product importance: When a product is handed over to an

intermediary, how much importance it gets is now out of the company’s
hand. The intermediary may have incentives to push another product
first at the expense of others.
We have understood that marketers need to set goals and direction. Decide
distribution strategies, assess benefits of each channels and assessing
possible channel costs decide forward path for network channel.
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10.5 DISTRIBUTION CHANNEL MANAGEMENT
Distribution channel management is a strategic aspect and needs careful

attention and consideration of different aspects.
Channel Management Strategy
1. Analyze the consumer: Channel management starts by answering two

questions. First, to whom shall we sell this merchandise immediately?
Second, who are our ultimate users and buyers? In both cases, certain
basic questions apply: There is a need to know what the customer
needs, where they buy, when they buy, why they buy from certain
outlets, and how they buy.
It is best that we first identify the traits of the ultimate user, since the
results of that evaluation might determine the other channel institutions,
we would use to meet those needs. For example, the buying
characteristics of the purchaser of a high-quality curved TV might be the
following:
a. Purchased only from a well-established, reputable dealer
b. Purchased only after considerable research to compare prices and
merchandise characteristics
c. Purchase may be postponed
d. Purchased only from a dealer equipped to provide prompt and
reasonable product service
These buying specifications illustrate the kinds of requirements that the

manufacturer must discover. Once the consumer’s buying specifications
are known, the channel planner can decide on the type or types of
wholesaler or retailer through which a product should be sold.
Once above aspect is decided, the manufacturers must also discover

buying specifications for resellers. Of particular importance is the
question “From whom do my retail outlets prefer to buy?” The answer to
this question determines the types of wholesalers (if any) that the
manufacturer should use.
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2. Establish the channel objectives: Once customer needs are

specified, the marketer can decide what the channel must achieve,
which can be captured in the channel objectives. Channel objectives are
based on customer requirements, the marketing strategy, and the
company strategy and objectives.
In writing the objectives may differ from the company to company,

overall it covers following aspects:
a. Growth in sales by reaching new markets and/or increasing sales in
existing markets.
b. Maintenance or improvement of market share
c. Achieve a pattern of distribution by a certain time, place, and form
d. Reduce costs or increase profits by creating an efficient channel
3. Specify distribution tasks: After the distribution objectives are set, it

is appropriate to determine the specific distribution tasks (functions) to
be performed in that channel system. For example, a manufacturer
might list the following tasks as necessary to profitably reach the target
market:
a. Provide delivery within 48 hours after order placement
b. Offer adequate storage space
c. Provide credit to other intermediaries
d. Facilitate a product return network
e. Provide readily available inventory (quantity and type)
4. Evaluate and select among channel alternatives: Determining the

specific channel tasks is a prerequisite of the evaluation and selection
process. There are four considerations for channel alternatives, namely:
a. Number of levels-Single level or multi-level as we saw in sec 9.3
b. Intensity at the various levels – Needs to determine the actual
number of channel partners -
c. Types of intermediaries at each level – Agent, wholesaler, retailer?
Which type is most suitable?
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d. Application of selection criteria to channel alternatives – Evaluate

these alternatives with respect to some set of criteria such as
company factors, environmental trends, reputation of the reseller, and
experience of the reseller
5. Evaluate channel member performance: The need to evaluate the

performance level of the channel members is just as important as the
evaluation of the other marketing functions. Clearly, the marketing mix
is quite interdependent, and the failure of one component can cause the
failure of the whole. Channel evaluation criteria could be sales
achievement, inventory maintained, etc.
6. Other Aspects: Following other aspects need to be also handled:

a. Channel manpower capability
b. Clarity of roles and responsibilities
c. System and process automation
d. Communication and Integrity
e. Conflict management and resolution
f. Handling network bullying
g. Power equation balancing
Activity B
Consider that you have been newly appointed as Head-Marketing,

Samsonite Luggage India. You wish to assess the health of distribution
channel. Consider above points and articulate your approach and strategic
steps you may take. You may make your own assumptions.
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
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10.6 EMERGING DIFFERENT CHANNELS OF DISTIRBUTION
In this competitive world, we have understood basic channels of

distribution, which marketers may consider for their product. We need also
get an overview of other emerging channels and same is covered below:
a. Online: Today, now due to the presence of online marketplace like

Amazon, Flipkart and more, popularity of online market has grown
many fold. With the advent of smartphones, its use has also
phenomenally increased. Marketers have following options:
i. Company online platform: Organizations themselves can offer their

own online platform. To set up is challenging but later it’s a question
of managing, drawing traffic, luring more use, expand range and
various other ways you may make it popular.
ii. Be on the third-party platform: You may sell your goods on the
third-party online platforms like Amazon, Flipkart, Big Bazaar, etc.
Consumers have choice of visiting website or download and use their

mobile APP.
b. Licensing: Licensing is definitely a useful form of expansion but one

that requires caution. In terms of “licensing,” as a Licensor, you will be
granting a third party (known as the licensee) the right to utilize your
trademarks and, possibly, your business systems and intellectual
property. The benefits are that you will generate additional revenue in
the form of a “license fee” and licensing may serve to expand consumer
recognition of your brand. The detriment is that other than granting a
“license” to use certain trademarks and intellectual property, you will
not be permitted to exert control over your “licensee.” Moreover, license
agreements in many instances cross the “legal line” and fall within the
definition of a franchise. So, a license agreement, if not properly drafted
and restricted, may subject you to franchise liability.
Many times, you see a specific notification on shop’s signboard as

‘Company Showroom’. You may see similar other show rooms for same
brand w/o this notification. Thus, one which displays the notification, is
the outlet which is set up and run by the company itself. Puma company
Showroom, Samsonite company show room and non-company show
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room exist. The difference is others are licensing agreement-based

outlet. Where license is given to use specific trademark and authorized to
sell specific company’s product range. In product, where quality can be
guaranteed at the manufacturing level itself, such arrangement is
feasible. But how about food? Quality is created at the place, where it is
produced. In such a case, franchising is an ideal solution.
c. Franchising: Franchising is strong, weighs more than licensing.
Franchising is certainly a proven business and legal model for multi-unit

expansion. This cannot be denied. Unlike licensing, franchising does
present some regulatory hurdles, i.e., the need to prepare a franchise
disclosure document (“FDD”), FDD registration and certain state specific
franchise relationship laws. But when done correctly, franchise regulation
can benefit the franchisor and franchising offers the successful business
owner a solution to their expansion dilemma: franchised expansion
occurs with the assistance of the capital and managerial efforts of what
we would hope are qualified franchisees, and product, process, back-end
system support, and manpower training, standardized packaging is
undertaken by parent organization, i.e., franchisor.
You see so many pizza parlors of branded pizzas, offering same variety,
look and feel is due to rigorous attention towards pre-readiness
preparations, access to way of working, standardized process and back-
end support. When branded Pizza opens its new outlet, the place, place
branding investment, manpower and financing will be from a person who
is taking a franchisee. Main franchisor will provide branding elements,
pre-printed packaging, manpower training, billing and accounting
centralized software support, generate leads and pass it on to the
franchisee. Cost of advertising may be partly recovered from the
franchisee. In India, this revolution is spearheaded by Franchise India
(www.franchiseindia.com). They have strong online portal and they
conduct numerous local events to promote this concept.
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10.7 ROLE OF CHANNELS OF DISTRIBUTION
Why We Need to Understand the Role of Channels of Distribution?
In the present widening market, distribution channels play an important

role in achieving marketing objectives of an organization. Marketing needs
to create four utilities namely:
(a) Form Utility by manufacturing goods needed
(b) Possession Utility by providing exchange proposition
(c) Place Utility by offering goods at the right place
(d) Time Utility by offering goods when needed
Any marketer can create form and possession utility, but time and place
utilities are created by distribution channels. In the words of Drucker,
“both the market and the distribution channels are often more
crucial than the product. They are primary, the product is
secondary”.
Role of Channels of Distribution
a. Enhanced efficiency: Set up of distribution channels enhance the

efficiency of the distribution system. A system of manufacturers directly
dealing with consumers will be less efficient than the decentralized
system involving distribution agents.
b. Smooth flow of goods and services: The distribution channels

smoothen the flow of goods and services by creating possession, time
and place utilities.
c. Reducing cost of transactions: The cost of transactions is minimized

if they are undertaken regularly. The distribution through intermediates
will be possible if products are standardized. The terms and conditions
of purchase, sale, payments will be standardized resulting into increased
number of transactions.
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d. Facilitate search: The buyers and sellers search for each other in the
market to transact for products and services. This function is facilitated
by distribution agents. These intermediaries remain in touch with sellers
and buyers, thus facilitate exchange.
e. Less stock of goods: In the absence of distribution agents

manufacturers are required to keep large stocks of goods. When
middlemen enter the chain of distribution then stocks are maintained by
large number of intermediaries and it reduces the burden of producers.
f. Proximity to consumers: The intermediaries are nearer to the

consumers as compared to the producers. They are in direct touch with
the users of goods and services and understand their reactions to the
supplies. The intermediaries help producers in knowing the reactions of
consumers to the goods and services brought out by them. This
information is of immense value to producers in planning for their
products.
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10.8 SUMMARY
Place is thus defined as the product’s proper distribution and ensuring

availability at a convenient location at the right time. As we've earlier
understood, place is the element of the marketing mix that ensures that
the product is distributed and made conveniently available for the
consumer – at the right location at the right time. Place decisions outline
where a company sells a product and how it delivers the product to the
market. The goal of business executives is to get their products in front of
the consumers most likely to buy them.
There are various important aspects linked to the place such as right place
reaches goods, available closer to your customers, from where it is east to
introduce and communicate about your products, allowing you to engage
better and provides required exclusivity to customers. It also helps you to
launch new products, get promotions successfully executed and develop
your exchange business. Through a finance model also we understood the
importance of place.
We have studied different channels of distribution such as direct, indirect,

dual and reverse distribution. We have briefly learnt about different
channel members like agent, wholesaler, retailer etc. Channel specific
decisions needs you to set goals and direction, select distribution
strategies, determine issues influencing channel strategy, assessing
benefits of distribution channels, and assessing possible channel costs.
Distribution management being a strategic aspect, needs you analyze the

consumer, establish the channel objectives, specify distribution tasks,
evaluate and select among channel alternatives, evaluate channel member
performance besides other aspects.
We have also studied different emerging channels of distribution and role

of distribution in marketing.
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1. Highlight importance of Place (Distribution) in marketing.
2. Give understanding about the different channels of distribution.
3. Which are the channel decision areas? List main areas with points under
them you will consider.
4. How will you manage the channel?
5. What are the roles of channels of distribution?
_________.
(a) Right location at the right price
(b) Right location through right channel
(c) Right location through right communication
(d) Right location at the right time
2. Availability of the product at the right place offers an opportunity for

_________.
(a) Engagement
(b) Promotion
(c) Discount sale
3. There are four main types of distribution channels namely (i) Direct
distribution channel, (ii) Indirect distribution, (iii) Dual distribution
channel and (iv) __________.
(a) Reserve distribution channel
(b) Reverse distribution channel
(c) Reproduce distribution channel
(d) Forward distribution channel
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4. In this type of _________ channel, a company may use a combination

of direct and indirect selling.
(a) Dual distribution
(b) Reserve distribution
(c) Reverse distribution
(d) Forward distribution
5. In managing channel, you need to select distribution strategy which

could be either intensive distribution, _________ distribution and
exclusive distribution.
(a) Standalone distribution
(b) Spread based distribution
(c) Selective distribution
(d) Deep distribution
Answers: 1. (d), 2. (a), 3. (b), 4. (a), 5. (c).
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REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
360
MARKETING STRATEGIES AND TACTICS
Chapter 11
Marketing Strategies And Tactics
Objectives
• what marketing strategy is
• what strategic marketing planning is
• how to make strategic marketing plan
• about different marketing strategies
• about various challenges involved in strategic marketing planning
Structure:
11.1 Introduction
11.2 Strategy vis-à-vis Tactics – What Will Succeed?
11.3 What is Strategic Marketing Planning?
11.4 Developing Strategic Marketing Plan
11.5 Strategizing Marketing Mix
11.6 Developing Value Chain
11.7 Challenges of Strategic Marketing Planning
11.8 Marketing Strategies in B2B Business
11.9 Marketing Strategies in Service Marketing
11.10 Summary
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11.1 INTRODUCTION
Marketing is a function, which has to make the difference to the

organization’s revenue growth and profitability, defend organization’s
fortune against the competition and thus it needs a strategic approach to
its management.
What is Marketing Strategy?
A marketing strategy refers to a business's overall game plan for

reaching prospective consumers and turning them into customers of the
products or services the business provides. A marketing strategy contains
the company’s value proposition, key brand messaging, data on target
customer demographics, and other high-level elements. Marketing strategy
is a long-term, forward-looking approach to planning with the fundamental
goal of achieving a sustainable competitive advantage.
Despite being crucial subject, no uniform definition of marketing strategy is

present. Thus, we preset few available definitions.
"The marketing strategy lays out target markets and the value proposition
that will be offered based on an analysis of the best market
opportunities." (Philip Kotler and Kevin Keller, Marketing Management,
Pearson)
“An over-riding directional concept that sets out the planned path.” (David
Aaker and Michael K. Mills, Strategic Market Management, 2001)
"Essentially, a formula for how a business is going to compete, what its

goals should be and what policies will be needed to carry out these
goals." (Michael Porter, Competitive Strategy: Techniques for Analyzing
Industries and Competitors, NY, Free Press, 1980)
Strategy formulation is built on “the match between organizational

resources and skills and environmental opportunities and risks it faces and
the purposes it wishes to accomplish.” (Dan Schendel and Charles W. Hofer,
Strategy Formulation: Analytical Concepts, South-Western, 1978)
On close examination, however, these definitions appear to centre on the

notion that strategy refers to a broad statement of what is to be achieved.
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What is Tactic in Marketing?
Marketing tactics are the planned actions that direct the promotion of a
product or service to influence specific marketing goals.
Tactics are the action taken to support the strategy. Simply put, strategy
refers to the plan to achieve a goal while the tactic is how you
execute the plan.
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11.2 STRATEGY vis-à-vis TACTICS – WHAT WILL

SUCCEED?
Despite knowing that both are different aspects of marketing, very often
marketing under various disguise operates as a tactical marketing instead
of strategic marketing. Neither will operate in a sustainable way for long-
term without the absence of other. Starting with tactical marketing without
first addressing strategic marketing is like building a house without a
blueprint. It's based on a strategy of hope which is guaranteed to fail.
Strategic marketing and tactical marketing complement each other. We will

understand how both are different.
Strategic Marketing
To gain a competitive edge in marketing, you need a thorough

understanding of your target customer’s demographics and buying habits.
To decide what your business goals are, you must be up-to-date on
industry trends and your competitive position. Once you’ve formulated
your goals, you need to develop a strategy to achieve those goals.
Strategic planning involves recognizing the threats and opportunities

presented by the industry. What are the strengths and weaknesses in
manufacturing? Does your company have the strength and financial
capability to tackle those threats and grab those opportunities?
Your strategy shouldn’t be all things at once. Strategy first tries to leverage
your strengths, exploits the opportunity, prepares to defend against the
threats and attends to overcome organization’s weaknesses. Fulfilling the
needs of this industry problem becomes your goal – your strategy.
Strategic marketing considers the long-term goals of your company such

as expanding your business, exploring new demographics, or creating a
new brand. Therefore, it articulates your goals and provides the pathway to
reach there with specific milestones in your pathways which enable you to
know, where you are heading for.
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Tactical Marketing
Tactical marketing focuses on the details to achieve that goal. With a

strategy in place, the actions or tactics needed to reach your goal can be
set into motion.
Creating tactics to support your marketing strategies involve detailed

profiles of your customers. Only by knowing your target demographic can
you choose the right advertising media and determine which marketing
channel is most effective.
Tactical marketing often involves generating leads, building websites,

placing ads, and following up. It includes advertising, sales promotions,
and other activities that directly support your strategic marketing plan.
Strategic marketing and tactical marketing are interdependent and

employed in combination. Your marketing plan starts with a strategy and
followed by detailed tactics. The presence of both forms of marketing
is essential to the success of your marketing.
11.3 WHAT IS STRATEGIC MARKETING PLANNING?
Strategic Marketing Planning
Strategic planning involves an analysis of the company's strategic initial

situation prior to the formulation, evaluation and selection of market-
oriented competitive position that contributes to the company's goals and
marketing objectives.
Marketing strategy involves mapping out the company's direction for the
forthcoming planning period, whether that be three, five or ten years. It
involves undertaking a 360° review of the firm and its operating
environment with a view to identifying new business opportunities that the
firm could potentially leverage for competitive advantage. Strategic
planning may also reveal market threats that the firm may need to
consider for long-term sustainability. Strategic planning makes no
assumptions about the firm continuing to offer the same products to the
same customers into the future. Instead, it is concerned with identifying
the business opportunities that are likely to be successful and evaluates
the firm's capacity to leverage such opportunities. It seeks to identify the
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strategic gap; that is the difference between where a firm is currently

situated (the strategic reality or inadvertent strategy) and where it should
be situated for sustainable, long-term growth (the strategic intent or
deliberate strategy).
Strategic planning seeks to address five simple yet relevant questions,

specifically:
• What we have set for ourselves to collectively achieve? (Vision and
Mission)
• Where are we now? (Situation Analysis)
• Where we want to be or ought to be?
• How should we get there? (Strategies, plans, goals and objectives)
• How do we know when we got there? (Performance evaluation)
11.4 DEVELOPING STRATEGIC MARKETING PLAN
Overview of Strategic Marketing Plan Process
The process of developing a strategic marketing plan is crucial to your

business. You cannot create strategic marketing without strategic thinking.
This planning helps you clarify your goals and identify where you see your
business in the future, which ultimately strengthens your strategy. The
strategic marketing planning process is a deliberate series of steps to help
you identify and reach your goals.
A strategic marketing planning process also helps with:

• Providing a clear map of your company’s goals and how to achieve them
• Getting all stakeholders to share a common goal and a have a common
understanding of your company’s opportunities and challenges
• Identifying and meeting customer needs with the right products in the
right places
• Growing your market share and product lines, leading to more revenue
• Enabling smaller companies to compete with bigger firms
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Following are the steps to a successful strategic marketing planning

process.
A. What we have set for ourselves to collectively achieve?

What have everyone at the specific organization has set to collectively
achieve or in simple terms why your company exists is reflected in vision
and mission statements.
A vision statement is a realistic, long term future scenario for the

organization. A vision statement is designed to present a realistic long-
term future scenario for the organization. It is a "clearly articulated
statement of the business scope."
A mission statement is a clear and concise statement of the

organization’s reason for being and its scope of operations.
The mission statement is a core message that guides and influences your
marketing strategy. Questions to ask when evaluating the mission:
• Why is your company in business?
• What is the purpose of your business?
• What is the strategic influence for your business?
• What is the desired public perception for your business?
• How does your mission statement clarify your strategy?
• How does your mission statement unify your team?
We will study more about this in our Chapter 15 on Marketing Planning.
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B. Where are we now? – Situation analysis
Strategic analysis is designed to address the next strategic question,

"Where are we now?" Strategic analysts are seeking insights about the
firm's operating environment with a view to identifying possible future
scenarios, opportunities and threats.
Various methods/models exist to determine your existing status. Prominent

methods/models are:
1. 5Cs methodology (Company, Collaborators, Customers, Competitors and
Context)
2. PESTEL Analysis
3. SWOT (Strengths-Weaknesses-Opportunities-Threats) Analysis
4. Gap Analysis
5. Brand and Category Index
Above methods helps you to determine where you are and what surrounds
you, where is an opportunity available and what you need to be cautious
about.
We will study more about these methods in our Chapter 15 on Marketing

Planning.
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C. Where we want to be or ought to be?
At the end of this second step, you will know what you have collectively
decided for yourself, and where you stand. You will know whether you are
on track vis-à-vis milestones or are you away from milestones set. This will
enable you to prioritize your actions, what strategic aspects you need to
handle, thus nature of strategy you need to develop, tactics you need to
consider. This is essential for you to aggressively pursue your marketing
objective or course correct to move towards achieving your marketing
objectives.
D. How should we get there?
The competitive strategy outlines the fundamental basis for obtaining a

sustainable competitive advantage within a category. Firms can normally
trace their competitive position to one of three factors:
a. Superior skills (e.g., coordination of individual specialists, created
through the interplay of investment in training and professional
development, work and learning).
b. Superior resources (e.g., patents, trade-mark protection, specialized
physical assets and relationships with suppliers and distribution
infrastructure.)
c. Superior position (the products or services offered, the market
segments served, and the extent to which the product-market can be
isolated from direct competition.)
We will now study different marketing strategies one can develop.

Essentially, we will cover well known marketing strategies development
models. Some helps you to develop internal organization specific marketing
strategies, while others will help you to develop competitive strategies.
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1. Boston Consulting Group’s Growth-Share Matrix
BCG matrix (or growth-share matrix) is a corporate planning tool, which is

used to portray firm’s brand portfolio or SBUs on a quadrant along relative
market share axis (horizontal axis) and speed of market growth (vertical
axis) axis.
Fig. 11.1: BCG (Growth-Share) Matrix
The BCG Matrix is just one of the many analytical techniques used by
strategic analysts as a means of evaluating the performance of the
firm's current stable of brands.
Growth-share matrix is a business tool, which uses relative market share

and industry growth rate factors to evaluate the potential of business brand
portfolio and suggest further investment strategies.
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It’s a matrix made when market growth is match with your market share.
Both are classified as High-Low. Refer Fig. 11.1 for understanding.
Strategic Considerations from BCG Matrix Analysis
Star products: These are products which gives you higher market share in
a highly growing markets. You will get early indicator about your product
being start when it picks up momentum during its growth phase of PLC.
Strategy followed in such scenario is to allow it o grow by providing
sufficient funds for investing in brand promotion, building loyalty, curtailing
competition and more such tactical initiatives needed.
Question marks: These are products which have lower market share in
highly growing markets. Such products are newly introduced or strugglers
over reasonably long phase of time. Strategy followed in such scenario is to
invest more if it’s a new product with possibility of getting you better
market share or think about withdrawing the product or extending its life
with minimal investments.
Dogs: These are products which has lower market share in a low growing
market. Either market for such product is declining or did not grow as
expected when you invested. It happens usually during end lag of PLC. You
have a choice to prolong its existence till you introduce new product or
withdraw tactfully. If you are extending product life-stage then you need to
provide minimal requisite cashflow.
Cash cows: These are products which still maintain its leadership position,
high market share even when market growth has slowed down. Such
products continue to give you higher revenue, account for larger share of
your revenue. Such products are usually at their maturity stage but
considering its status as a star product, you need to invest in it to bring
more variants, retain the market share, maintain leadership etc.
Post knowing stature of your product vis-à-vis market growth environment,

you are able to take certain strategic decisions.
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Advantages (Benefits) of BCG Matrix

• Easy to perform
• Helps to understand the strategic positions of business portfolio
• It’s a good starting point for further more thorough analysis
Disadvantages (Criticisms) Linked with BCG Matrix
• Business can only be classified to four quadrants. It can be confusing to
classify an SBU that falls right in the middle.
• Does not include other external factors that may change the situation
completely.
• Market share and industry growth are not the only factors of profitability.
Besides, high market share does not necessarily mean high profits.
• It denies that synergies between different units exist. Dogs can be as
important as cash cows to businesses if it helps to achieve competitive
advantage for the rest of the company.
2. Product-Growth Matrix Model
Growth of a business is critical for business success.
A firm may grow by developing the market or by developing new products.

This is well represented by the Ansoff’s product-growth matrix model. The
Ansoff product and market growth matrix illustrates the two broad
dimensions for achieving growth.
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Fig. 11.2: The Ansoff’s Growth Matrix Model
The Ansoff matrix identifies four specific growth strategies: market

penetration, product development, market development and diversification.
Market penetration: It involves selling existing products to existing

consumers. This is a conservative, low risk approach since the product is
already on the established market. Same product-multiple numbers at
economical rate, 20% extra. Limited period offer are few tactics used.
Product development: Here, it calls for the introduction of a new product

to existing customers. This can include modifications to an already existing
market which can create a product that has more appeal.
Market development: It involves the selling of existing products to new

customers in order to identify and build a new clientele base. This can
include new geographical markets, new distribution channels, and different
pricing policies that bring the product price within the competence of new
market segments.
Diversification: This strategy is the riskiest area for a business. This is

where a new product is sold to a new market. There are two types of
Diversifications – horizontal and vertical. 'Horizontal diversification
focuses more on product(s) where the business is knowledgeable, whereas
vertical diversification focuses more on the introduction of new product
into new markets (HUL into ketch-up, coffee market), where the business
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could have less knowledge of the new market. Reliance Industries Ltd. is
the biggest example of vertical integration – they started with polymer
selling, and today they have own refineries.
Advantages of Ansoff’s Product-Growth Matrix Model

• It forces market planners and management to think about the expected
risks of moving in a certain direction
• It lays out possible strategies for growth
• Sets out aims and objectives
• Assessment of alternatives – shows opportunity cost
• Creates a risk aware culture
• Indicates level of risk and relevant risk
Disadvantages (Criticisms) Linked with Ansoff’s Product-Growth

Matrix Model
• Fails to show that market development and diversification strategies
require a change to every day running of the business
• Does not consider the activities of external competitors
• Plans too optimistic, e.g., transferrable skills
• Accurate predictions are difficult – unforeseen events
• Conflicting objectives of stakeholders
Integrated Approach to Understand Ansoff’s Product-Growth Matrix

Model
In the above portions, we have understood different strategies under

Ansoff’s Product-Growth matrix model. To really understand significance of
this model, one must understand it in an integrated manner as follows;
Growth will come when we are able to determine ‘Strategic Gap’. Strategic
gap is the difference between expected sales/revenue from existing
business [or product portfolio] and desired sales/revenue.
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Fig. 11.3: Understanding Strategic Gap
Growth will come from any one of the following;

• Growing existing business = Intensive growth
• Planning new business = Integrative growth
• Terminating/downsizing existing business
Intensive Growth
Intensive growth is needed for growing existing business. Following points

will help you to understand it better;
• Implies growth/development possibilities from existing business or
segments of market
• Product Market Expansion Grid (Ansoff’s Product-Growth matrix model)
useful tool to analyze this
• Gives a hierarchy to growth plans – 1st look at how higher market share
from current products can be obtained – market penetration strategy
• 2nd find new markets for existing products – market development
strategy
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• 3rd look at what new products can be offered to existing markets/

segments/customers which are related to company’s mission and have
synergy with current products – product development strategy
Integrative Growth
Growth can come from doing new business. New business can come either
from (1) integration approach or (2) Diversification approach.
1. Integration approach to growth can be achieved from backward,

forward and horizontal growth within industry.
• Backward Integration: When company starts to produce one or more
of the raw materials/components required to make current products –
either sets up own unit or acquire suppliers.
• Forward Integration: When company moves up the value chain in
making finished product for which its current product is an input – either
sets up own unit or acquire customer’s unit/brand.
• Horizontal Integration: When company acquires a competitor.
2. Diversification approach growth means you diversify into

opportunities outside their current business/portfolio.
• Good Opportunity = Industry is attractive and company has right mix of
business strengths to be successful.
• Look for new areas that may have technological or marketing synergies
with existing product lines but may be targeted at different customers
[new market/segment] – concentric diversification.
• New products that could relate to current customers – but unrelated to
its current product lines – horizontal diversification.
• New opportunity that is not related to its current product/technology/
markets – some totally new and out of box – conglomerate
diversification.
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Terminating/Downsizing Existing Business
Apart from growth strategies, companies must also harvest, prune or

downsize existing businesses to stay healthy and competitive.
Key reasons for terminating/downsizing existing business are:

• Generate resources for growth
• Reduce costs
• Weak business which requires too many resources
3. GE Matrix Model
This is known as General Electric model for selecting strategic alternatives

is known as the market attractiveness/company strength matrix.
The GE matrix was developed by McKinsey & Company consultancy group

in the 1970s. The nine cell grid measures business unit strength against
industry attractiveness and this is the key difference. Whereas BCG is
limited to products, business units can be products, whole product lines, a
service, even a brand or alternative industries (useful for diversification
decision). You can plot these chosen units on the grid, and this will help
you to determine which strategy to apply. This tool helps you to allocate
resources among strategic business units on the basis of how attractive a
market is, and how well the firm is positioned to take advantage of
opportunities in that market.
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Fig. 11.4: GE McKinsey Model
Industry attractiveness and business unit strength needs to be derived:

Industry Attractiveness
• Market size/Market growth
• PESTEL factors
• Porter’s five forces
Business Unit Strength
• Market share/Growth in market share
• Brand equity
• Profit margins compared to competition
• Distribution channel process
Now, you have the measurements you can plot your business units on the
GE matrix and depending on where they are plotted will determine your
strategy from one of the following:
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Grow/Invest: Units that land in this section of the grid generally have
high market share and promise high returns in the future so should be
invested in.
Hold/Selectivity: Units that land in this section of the grid can be

ambiguous and should only be invested in if there is money left over after
investing in the profitable units.
Harvest/Divest: Poor performing units in an unattractive industry end up

in this section of the grid. This should only be invested in if they can make
more money than is put into them. Otherwise they should be liquidated.
As you can see this model is very useful for analyzing your business units
against multiple factors rather than the two-dimensional approach of the
BCG. In doing so you will have a starting point in which to build your
strategy for allocating resources and expanding products.
4. Porter’s Competitive Forces Strategies Model
Michael Porter is known as legend for competitive marketing strategies.

Porter’s competitive forces strategies helps you to develop a defensible
competitive position within an industry or sector. Porter's competitive
forces model describes how a company can develop and pursues
competitive advantage across its chosen market scope.
Porter’s competitive forces model was developed to analyze an

industry's attractiveness and likely profitability. These forces are:
Competitive Rivalry: This looks at the number and strength of your

competitors. How many rivals do you have? Who are they, and how does
the quality of their products and services compare with yours?
Where rivalry is intense, companies can attract customers with aggressive

price cuts and high-impact marketing campaigns. Also, in markets with lots
of rivals, your suppliers and buyers can go elsewhere if they feel that
they're not getting a good deal from you.
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Fig. 11.5: Porter’s Competitive Forces Strategies Model
Supplier Power: This is determined by how easy it is for your suppliers to

increase their prices. How many potential suppliers do you have? How
unique is the product or service that they provide, and how expensive
would it be to switch from one supplier to another? The fewer suppliers you
may have, and the more you need their help, the stronger their position
and their ability to charge you more. That can impact your profit.
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Buyer Power: At this stage, you ask yourself how easy it is for buyers to
drive your prices down. How many buyers are there, and how big are their
orders? How much would it cost them to switch from your products and
services to those of a rival? Are your buyers strong enough to dictate terms
to you?
Threat of Substitution: This refers to the likelihood of your customers

finding a different way of doing what you do. For example, if you supply a
unique software product that automates an important process, people may
substitute it instead of doing the process manually or by outsourcing it. A
substitution that is easy and cheap to make can weaken your position and
threaten your profitability.
Threat of New Entry: Your position can be affected by people's ability to

enter your market. So, think about how easily this could be done. How
easy is it to get a foothold in your industry or market? How much would it
cost, and how tightly is your sector regulated?
If it takes little money and effort to enter your market and compete
effectively, or if you have little protection for your key technologies, then
rivals can quickly enter your market and weaken your position.
According to Porter, these five forces are the key sources of competitive
pressure within an industry. He stressed that it is important not to confuse
them with more fleeting factors that might grab your attention, such as
industry growth rates, government interventions, and technological
innovations. These are temporary factors, while the Five Forces are
permanent parts of an industry's structure.
Strategic Considerations from Porter’s Competitive Forces Model
In this approach, strategy formulation consists of three key strands of

thinking: (a) analysis of the five forces to determine the sources of
competitive advantage; (b) the selection of one of three possible positions
which leverage the advantage and (c) the value chain to implement the
strategy. In this approach, the strategic choices involve decisions about
whether to compete for a share of the total market or for a specific target
group (competitive scope) and whether to compete on costs or product
differences (competitive advantage). This type of thinking leads to three
generic strategies as follows;
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Cost leadership: The firm targets the mass market and attempts to be
the lowest cost producer in the market.
Differentiation: The firm targets the mass market and tries to maintain
unique points of product difference perceived as desirable by customers
and for which they are prepared to pay premium prices.
Focus: The firm does not compete head to head, but instead selects a
narrow target market and focuses its efforts on satisfying the needs of that
segment.
According to Porter, these strategies are mutually exclusive, and the firm
must select one approach to the exclusion of all others. Firms that try to be
all things to all people can present a confused market position which
ultimately leads to below average returns.
Advantages (Benefits) of Porter’s Competitive Forces Strategies
Model
• Useful where there is multi-party competition in the market
• Consider the impact that government has or may have on the industry
• Consider the industry lifecycle stage
• Consider the dynamic/changing characteristics of the industry
Disadvantages (Criticisms) Linked with Porter’s Competitive Forces
Strategies Model
• After understanding overview using the model, it suggests that
organization may only select only one strategy, i.e., either cost
leadership, differentiation and focus. However, it is possible to find
various organizations with hybrid strategies being applied such as
automobile companies.
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5. Strategies Linked to the Position in the Market
In terms of market position, firms may be classified as market leaders,

market challengers, market followers or market nichers.
Market leader: The market leader dominates the market by objective

measure of market share. Their overall posture is defensive because they
have more to lose. Their objectives are to reinforce their prominent
position through the use of PR to develop corporate image and to block
competitors brand for brand, matching distribution through tactics such as
the use of “fighting” brands, pre-emptive strikes, and use of regulation to
block competitors and even to spread rumours about competitors. Market
leaders may adopt unconventional or unexpected approaches to building
growth and their tactical responses are likely to include product
proliferation; diversification; multi-branding; erecting barriers to entry;
vertical and horizontal integration and corporate acquisitions.
Market challenger: The market challenger holds the second highest

market share in the category, following closely behind the dominant player.
Their market posture is generally offensive because they have less to lose
and more to gain by taking risks. They will compete head to head with the
market leader in an effort to grow market share. Their overall strategy is to
gain market share through product, packaging and service innovations;
new market development and redefining the market, broaden its scope and
strengthen own position in it.
Market follower: Followers are contented to play second fiddle. They

rarely invest in R&D and tend to wait for market leaders to develop
innovative products and subsequently adopt a “me-too” approach. Their
market posture is typically neutral. Their strategy is to maintain their
market position by maintaining existing customers and capturing a fair
share of any new segments. They tend to maintain profits by controlling
costs.
Market nicher: The market nicher occupies a small niche in the market in
order to avoid head to head competition. Their objective is to build strong
ties with the customer base and develop strong loyalty with existing
customers. Their market posture is generally neutral. Their strategy is to
develop and build the segment and protect it from erosion. Tactically,
nichers are likely to improve the product or service offering, leverage
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cross-selling opportunities, offer value for money and build relationships

through superior after-sales service, service quality and other related value
adding activities.
6. Marketing Warfare Approach to Strategy
Marketing warfare strategies are competitor-centered strategies drawn

from analogies with the field of military science. Warfare strategies were
popular in the 1980s, but interest in this approach has waned in the new
era of relationship marketing. In spite of its limitations, the typology of
marketing warfare strategies is useful for predicting and understanding
competitor responses.
In the 1980s, Kotler and Singh developed a following typology of marketing

warfare strategies;
• Frontal attack – where an aggressor goes head to head for the same
market segments on an offer by offer, price by price basis; normally used
by a market challenger against a more dominant player.
• Flanking attack – attacking an organization on its weakest front; used
by market challengers.
• Bypass attack – bypassing the market leader by attacking smaller,
more vulnerable target organizations in order to broaden the aggressor's
resource base.
• Encirclement attack – attacking a dominant player on all fronts.
• Guerilla warfare – sporadic, unexpected attacks using both
conventional and unconventional means to attack a rival; normally
practiced by smaller players against the market leader.
Strategies are both dynamic and interactive, partially planned and partially
unplanned. Strategies are broad in their scope in order to enable a firm to
react to unforeseen developments while trying to keep focused on a
specific pathway. A key aspect of marketing strategy is to keep marketing
consistent with a company's overarching mission statement.
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Activity A
Take the range of chocolates available from the house of Cadbury’s (now
Mondelez) and plot them on BCG matrix. What will be your next likely
strategy for the product in each box on the BCG matrix?
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
11.5 STRATEGISING MARKETING MIX
This is one of the crucial aspects of strategic marketing planning. Learning

from all above method/models gives you a specific picture based on which
you need to take strategic decisions related to MARKETING MIX. In the
following table, we list connected aspects with four strategic components of
marketing mix.
Table 11.1: Strategic Aspect of Marketing Mix

Marketing Mix Strategy Will Come From
Product Need analysis research, product clinics, test marketing
Competitive advantage - Parity vis-à-vis difference
Technology absorption from PESTEL
Strength/Opportunities from SWOT
Product Life Cycle stage (PLC)
Boston Consulting Group's matrix
Ansoff's Product-Growth matrix
Diversification - Horizontal/Vertical
Product mix-Product line, width, depth
Price Product Life Cycle stage (PLC)
Customer value created
Differentiation created
Buyer power as per Porter's model assessment
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Pricing strategies - skimming, penetration

Product classification as per BCG - Star, Dogs
What you want to communicate - quality, value
Place Channel strategy - Intense, selective, exclusive, online
Channel levels - single, multi-level
Cost of distribution - Profit generator
Promotion Marketing strategy
Type of promotion - sales, trade, institutional
Primary promotion objective
• From the above information, we can conclude that key resulting task is to
strategize your marketing mix. This gets represented in your marketing
plan. We will cover preparation of marketing plan in Chapter 15.
11.6 DEVELOPING VALUE CHAIN
To understand and appreciate the scope and impact of creating customer

value in marketing management, one can with due acknowledgement to
Michael Porter, state, that Competitive Advantage derives from the value
a company creates for its customers. This value may take the form of
selling equivalent products to its customers at below competitor’s price or
providing additional unique benefits to more than compensate/offset the
premium price. In this context, let us look at the concept of a Value Chain.
It is important to see how the following Value Chain identifies the specific
sources of competitive advantage and how they relate to buyer values.
First, you will observe that the Value Chain helps us to determine the role
of Logistics in profitable organizations, how it fits into the business
pipeline. You will also note that logistics represents two of the five primary
business activities that add value to a product or service, and thus
specifically lead to Competitive Advantage.
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Fig. 11.6: Organization’s Internal Value Chain
• Inbound Logistics: Activities associated with receiving, storing, and

forwarding/issuing inputs to the manufacturing process, or to the
operating unit which has a role in transforming the inputs to some other
form to render it saleable. It also covers handling, warehousing,
inventory control, vehicle scheduling, and returns to suppliers.
• Operations: Activities associated with transforming inputs into the
finished goods, such as processing, machining, packaging, assembling,
labeling, testing, and also machine maintenance, operating facilities, etc.
• Outbound Logistics: Collecting, storing, physically distributing products
to the subsequent links in the Supply Chain. It would also involve
physical movement of goods across the chain from the manufacturing
units.
• Marketing and Sales: Providing the condition in which the customers
can buy or pick up the products, inducing and encouraging them to buy
the products, creating awareness, sustaining interest in the offerings
through advertising, promoting the products, sales force management,
channel selection/evaluation, pricing, etc.
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• Service: Providing service to enhance, maintain the value of the

product, involving activities such as installation, repair, parts supply,
training operators, product adjustments. Service may also involve
attending to claims arising due to spoilage, damage to products in the
channel, particularly when products are sold through resellers.
In the above background, innovative activities within inbound and

outbound logistics can create values and consequent competitive
advantages for the organization. Detecting and evaluating linkages
between the way one value activity is performed and the cost of
performance of another can lead to trade-offs and consequent competitive
advantages.
Activity B
If you are heading a world’s largest courier company in India. In India,

your position is that of market challenger. Lists ways in which you will
create customer value.
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
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11.7 CHALLENGES OF STRATEGIC MARKETING PLANNING
Strategic planning is indeed a details driven collective involvement process.

Thus, it has its own challenges as listed below:
• Details driven process: Strategic marketing planning process is details
driven. Nothing can be concluded without analytical inference available
before deriving any conclusions. Detailing needs its own time and same
is seldom available.
• It’s a collectively integrated process: Strategic marketing planning
process needs all stakeholders to come together and create an integrated
approach and arrive at the forward path in an integrated manner. There
is often lack of integration between different stakeholder – marketing
wants to produce aggressively but manufacturing will provide an excuse
of not getting investment to increase production capabilities. If both can
come together, it can be concluded that better planning by marketing
and better capacity utilization by manufacturing can still make them
aggressive.
• Department lacks alignment: Employees are typically consumed with
day-to-day operations, so when it comes to ‘big picture’ thinking
employees will go into meetings with their department point of view. This
causes issues when aligning all department goals into a single corporate
strategy.
• ‘Big picture’ is not clearly defined: When day-to-day operations won’t
necessarily be directly linked to the marketing, sales and finally corporate
goal, people can lose focus for what they’re working towards.
• Missing competitive perspective: many times competitive perspective
is just obtained based on environmental situational analysis. Often issues
linked to marketing mix and its competitive under currents are not
considered leading to misunderstanding about the strategic approach
chosen by the management among their frontline.
• Lack of SWOT optimization: Very few companies strategic marketing
planning will consider developing STRECHED TARGETS which is designed
to fully leverage its strengths and opportunities and develop well thought
out plan to defend against threats or improve upon weaknesses. Due to
these objective designed are sub-optimal and does not energize
organization team to go full throttled from the day one.
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11.8 MARKETING STRATEGIES IN B2B BUSINESS
Business to Business (B2B) is an exchange of commodities between two

manufacturing organization. One may supply a component to another for
him to manufacture either another component or a product, e.g., electric
coil manufacturer supplying coils to Crompton Greaves to manufacture fan.
Entire consumer buyer behaviour is very rational and structures. We will
study more about B2B stream in one of the subsequent chapters.
Overall entire perspective of studied above applies to them as well. Thus,

various matrix and models discussed above is applicable. One of the
marketing mix is not fully under their control namely PRICE. Thus, it needs
to build either more: (a) value or (b) improve service support or (c) have
better personal selling. Price needs to be managed for which you need
sound ears on the ground to know competitive pricing policies and
strengthen its objection handling and negotiation stages.
Innovation, new product development and differentiation helps you to build
value and thus preference for your product, organization.
11.9 MARKETING STRATEGIES IN SERVICE MARKETING
Service marketing is an exchange of intangible support rendered to satisfy

your need – courier, hairstyle, etc.
Any sound service industry organization also needs to do their strategic

marketing planning. However, it has additional aspects of marketing mix to
look at – people, process and physical evidence. We will study more about
this stream in one of the subsequent chapters.
However, tangibalization of intangible service and delivering the moment of

truth (feeling when you render service) is crucial and thus customer value
creation needs to be major focus. It offers you competitive advantage,
ability to command price, etc.
Other aspects of strategic marketing plan can still apply to service

marketing as well.
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11.10 SUMMARY
A marketing strategy refers to a business's overall game plan for reaching

prospective consumers and turning them into customers of the products or
services the business provides. Marketing strategy is a long-term, forward-
looking approach to planning with the fundamental goal of achieving a
sustainable competitive advantage.
Marketing tactics are the planned actions that direct the promotion of a
product or service to influence specific marketing goals.
Marketing strategy involves mapping out the company's direction for the
forthcoming planning period, whether that be three, five or ten years. It
involves undertaking a 360° review of the firm and its operating
environment with a view to identifying new business opportunities that the
firm could potentially leverage for competitive advantage.
Strategic planning seeks to address five simple yet relevant questions, (a)
What we have set for ourselves to collectively achieve? (Vision and
Mission); (b) Where are we now? (Situation analysis); (c) Where we want
to be or ought to be? (d) How should we get there? (Strategies, plans,
goals and objectives); (e) How do we know when we got there?
(Performance evaluation).
Strategy development starts post setting vision, mission and doing

situational analysis using any of the methods namely (a) 5Cs methodology,
(b) PESTEL Analysis, (c) SWOT Analysis, (d) Gap Analysis and (e) Brand
and Category Index.
Your strategy will emerge by using any model/matrix like (a) BCG Growth-
Share matrix; (b) Ansoff’s Product-Growth matrix;(c) Porter’s Competitive
Forces Strategies model; (d) Position linked strategies like leader,
challenger, follower; and (e) Marketing warfare approach to strategy.
We have understood how strategic marketing mix evolve post evaluating

above aspects. We have also learnt about creation of value chain as
competitive differentiator, besides development of marketing strategies in
B2B and service industry.
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1. What is marketing strategy and tactics?
2. Give basic overview of five questions which strategic marketing seeks to
address?
3. Give basic overview of strategic marketing plan process. Be brief and no
need to cover actual strategies.
4. Describe various marketing strategies available to marketers. Describe
any two in details including strategic considerations available from it.
5. Explain Porter’s Competitive Forces Strategies model. Highlight,
strategic considerations from Porter’s Competitive forces model.
6. Highlight challenges of strategic marketing planning.
1. A __________ refers to a business's overall game plan for reaching

prospective consumers and turning them into customers of the products
or services the business provides.
(a) Marketing mix
(b) Marketing value
(c) Marketing strategy
(d) Marketing promotion
2. The ___________ process is a deliberate series of steps to help you

identify and reach your goals.
(a) Product planning
(b) Strategic marketing
(c) Competitive planning
3. The competitive strategy outlines the fundamental basis for obtaining a

sustainable competitive advantage within a category. Firms can
normally trace their competitive position to one of three factors namely
superior skills, superior resources and __________.
(a) Superior position
(b) Superior perception
(c) Superior marketing mix
(d) Superior technology
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4. Boston Consulting Group’s matrix is also known as ___________

matrix.
(a) Position-Share matrix
(b) Competitive Forces
(c) Product-Growth matrix
(d) Growth-Share
5. Three types of generic strategies emerge from the Porter’s model

namely (i) Cost leadership, (ii) Focus and (iii) __________.
(a) Product leadership
(b) Value proposition
(c) Differentiation
(d) Entry level
6. While explaining significance of customer value, Michael Porter states,

that _________ derives from the value a company creates for its
customers.
(a) Price Value
(b) Competitive advantage
(c) Customer advantage
(d) Industry advantage
Answers: 1. (c), 2. (b), 3. (a), 4. (d), 5. (c), 6. (b).
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REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
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DIFFERENT FORMATS OF MARKETING
Chapter 12
Different Formats Of Marketing
Objectives
• different formats of marketing.
• different formats nature of organization, focus, competition, 4Ps/7Ps
relevance and core objective of their existence.
• how marketing unifies all different formats.
Structure:
12.1 Introduction
12.2 Business to Consumer (B2C) Marketing
12.3 Business to Business (B2B) Marketing
12.4 Service Marketing
12.5 Multi-level Marketing
12.6 Online Marketing
12.7 International Marketing
12.8 Marketing at the Non-profit Organization
12.9 Marketing at the Government Organization
12.10 What Unifies the Different Formats of Marketing?
12.11 Summary
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12.1 INTRODUCTION
We have studied the entire aspect of marketing management from the

perspective of B2C marketing. After understanding what marketing
management is and its different facets, we need to understand different
formats of marketing management. Name of the format indicates to us
essential characteristics of the organization. For each format, we will
understand key variations in their functioning, not limited to 4P’s.
Different formats of marketing are as follows;

1. Business to Consumers (B2C) marketing – cold drinks by Coke/Pepsi,
Hair care products, AC, fans
2. Business to Business (B2B) marketing – Sona steering selling steering
wheel system to Hyundai
3. Service marketing – DHL, Kaya Skin Clinic, Clubs
4. Multi-level marketing – Amway, Tupperware
5. Online marketing – Amazon, Flipkart
6. Non-Profit organization
7. Government organization
It is important to learn marketing aspect of above formats as they differ.

However, marketing management’s other aspects remain same or needs to
tweak to suit the industry and organization’s need. However, first three will
be explained in detail, remaining four will be briefly touched upon as they
are variation of service marketing.
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12.2 BUSINESS TO CONSUMER (B2C) MARKETING
We will study this format under the following heads;
a. Nature of the organization: Organizations which produce goods for

the consumption of final end customers adhere to business to consumer
(B2C) marketing. They produce goods, which is a finished product,
made using different raw materials for its use by final consumer (end
consumer). E.g.: Noodles, lipstick, soap, fan, TV, car and more. It may
also include service consumed by its end consumers such as Vodafone/
Airtel/Jio, Urban Clap, courier and more.
b. Focus: Customer centricity is their focus right from need understanding

(home service support by Urban Clap), to product development
(eyeliner, facial, tissue), deciding its positioning (Thanda matlab Coco-
cola), channel development (C&FA to Retail, authorized dealer (cars)),
pricing strategy as well as nature of promotions, advertising medium
selection etc.
c. Competition: Multi-player market with intense competition not only for

the same product, product range, but also from substitutes and new
products (Pagers were outdated the moment mobile services were
introduced). Need multi-strategy approach – some markets introduce
new products, some markets need to be developed, few markets you
must penetrate and likewise.
d. 4 P’s relevance: Briefly, it can be explained in the following manner;
i. Segmentation: Multiple ways in which it can be done but generally

behavioural, psychological and lifestyle approach is considered.
ii. Consumer buyer behaviour: Today’s buyer faces multiple touch

points (physical & digital) where brands can engage her to make her
recognize his problem, information search is easy with websites,
videos on YouTube or APP based info sharing/comparisons makes it
possible to gather all required info w/o visiting dealership outlets,
evaluation of alternatives is also made easy and opinions, feedback
and rankings vis-à-vis brand’s ability to engage makes his buying
decision clear.
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iii. Marketing mix: Multiple marketing mix are developed to address

multiple target segments – Pepe jeans for teenagers, ladies and
senior citizens.
iv. Product: New product can be developed continuously post

understanding ever evolving consumer needs, price premium is
possible if value is offered, product at multiple price points can be
introduced, product needs to be available at the nearest point to
consumers. Product-mix strategy is crucial for success.
v. Price: Same company may need multiple pricing strategies for
different products – skimming pricing for new product, penetrative
pricing where market share needs to be improved, promotional
pricing to defend against competition or extend the PLC of any
product.
vi. Promotion: Different promotion mix for different marketing mix

needed. Promotion mix for Pepe jeans for teenagers will be different
than the one for senior citizens. In terms of marketing
communication emotional advertisement communication, brand
ambassador selection, etc. influence consumer preference. All round
publicity and press relation are crucial to build brand value and
connection.
vii.Place: Multi-format place strategy is needed – exclusive store,

company show room, experience centres, vis-à-vis mass channel-
based point of purchase for items of daily consumption like
toothpaste, toothbrush, salt, etc.
e. Core objective: Profit maximization through market penetration/

development, gaining consumer preference, providing maximum
satisfaction to customers and growing the market share.
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12.3 BUSINESS TO BUSINESS (B2B) MARKETING
We will study this format under the following heads:

the consumption by other manufacturer in either another form of raw
material (copper wire, magnets and electric motor manufacturer
providing their goods to alternator producer) or finished goods
manufacturer, whose end product is consumed by the end customers
(electric motor, MS blade maker, paint maker supplying goods to electric
ceiling fan manufacturers), thus adhere to business to business (B2B)
marketing. They product goods, which in its original form is consumed
by another manufacturer thus it is known as business to business.
b. Focus: Without ignoring the feasibility of product innovation, essentially

their product development is governed by expressed product nature by
the manufacturer, e.g.: electric motor manufacturer may tell paint
manufacture that they need fire retardant paint for their new flame
proof motor. In such a case, paint manufacturer gets on to develop such
paint. However, in growing competitive B2B market also, now
organizations are trying to understand their customers evolving needs.
Focus is also on innovation for technology differentiation – Intel Core i10
chipset, BOSCH Electrical components etc.
c. Competition: Multi-player market with moderate competition only for

the same product, for limited product range, and substitution is planned
is advance by the manufacturer thus known to raw material suppliers.
(There are select few electric motors manufacturer for the ceiling fans
supplying it to the select ceiling fan manufacturers, wherein ceiling fan
as such still has its utility but its specs may have undergone planned
modification, and upgradation). Competition fights the battle through
new product; feature rich yet cost economical products.
d. 4 Ps relevance: Briefly, it can be explained in the following manner;
i. Segmentation: Rational, industry or application wide segmentation

is needed. Segmentation is considered on aspects like size of the
customer organization, product range, quality consideration, price
sensitivity etc.
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ii. Consumer buyer behaviour: Problem recognition here is a natural

process. However, information seeking has become easy due to
digitalization, websites and trade directories and catalogues
availability, evaluation of alternatives is the result of supplier’s
initiatives but networking on media and platforms plays crucial role.
Buying decision is a complex process where user department,
information seeker and evaluator could be different, and decision is a
result of committee, yet decision influencer could be someone else.
Post purchase evaluation continues to play its significant role.
iii. Marketing mix: Marketing mix tend to be limited, mostly one per
product. For example, for flame retarding motors, one marketing mix
will be followed but same firm making motor’s armatures, may follow
different marketing mix. In B2C, we saw that you may need multiple
marketing mix to market one product, e.g., Pepe jeans.
iv. Product: New product can be developed mostly in consultation with

the other manufacturer, frequency of which is less than the consumer
market, for modification and upgradation being important
management decision; it is generally taken by taking few raw
materials suppliers also in confidence.
v. Price: Price premium is not possible as it B2B marketing operates on

rational aspects, difficult to introduce product at multiple price points.
However, technology superiority and innovativeness can get you
desired price points – SKF Bearings are notch costlier than the
nearest reputed world-famous brand due to technology capabilities
they could demonstrate.
vi. Promotion: Rational advertisement communication, and personal

selling does influence consumer preference. Volume discount,
business-based offers and support may tilt the business in your
favour. Participation in trade fairs allows you to demonstrate your
capabilities and gain more customers.
vii.Place: Product need not be available in close proximity but timely

supply needs to be assured to avoid production stoppage.
Aftermarket space also needs to be catered to by the raw materials
manufacturers. Distribution management plays a key role. Thus,
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participation in buyer-based hub and spoke module of delivery, JIT,

and complete supply chain management needs to plan a vital role.
e. Core objective: Profit maximization through OEM penetration, gaining

business on rational aspect and service support, building value through
technology and innovation approach, and providing maximum value for
money to get repeated business.
Activity A
Select cosmetic as a B2C and Gen-Set as B2B product, please highlight

noticeable difference in their handling of 4Ps specific challenges.
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
12.4 SERVICE MARKETING
a. Nature of the organization: Organizations which produces service for

its utilization by the consumers is known as service organization. They
need to thus practice service marketing management. Core task of
service marketer is to make the intangible service delivery part, tangible
(All ironing shops do ironing, can you offer wrinkle free delivery? All
telephone service provider offer long-distance calling, can you make it a
romantic affair for people in distance love?). Service does not have any
form; thus, it needs to be felt and same is possible only if you rightly
make it tangible for the users to feel (Airtel faces same issue as others
in India, but they seem to be offering best connectivity. They claimed
that OOKLA, world’s renowned speed test agency has published a speed
test report of telecommunication companies and Airtel has secured No.
1 position it. This was converted into very engaging advertisement and
people believed it. This is one such example. However, whole emphasis
is on consumer experience and what they feel, when they use it).
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b. Focus: Make your service intangibles, more tangible for the customer to
experience it. Constantly plot consumer’s service encounters at the
different touch points and make it seamless, trouble free and most
convenient to receive the service/support. It is not important to have all
current tools like customer care email, customer care WhatsApp chat
no, customer care toll free numbers, web-tracking support. It is
important to have what you can run most efficiently.
c. Competition: Multi-player market with moderate competition only for

the same service. You may expect more competition to come in, post
noticing your success – cloths handling boutique service (gentle wash,
right ironing, special cloth wrapping papers, hope pick-up and delivery)
initially has limited players but now you have more entrepreneurs
coming in, with foreign collaboration. However, there are areas, which
faces stiff service competition such as telecommunication, retail, etc.
d. 7P’s relevance: First of all, in service marketing, instead of 4P’s, there

are 7P’s. Additional three being People, Process and Physical Evidence.
i. Segmentation: In service marketing, segmentation plays a critical

role – VODADONE RED is for conscious consumers groups wanting to
bring benefits to family members. Express Service from DHL is a
segment looking for speedy delivery than the natural time lag.
ii. Consumer buyer behaviour: Service being one to one and delivered
in real time, consumer post identifying his problem recognition will
spend considerable time to seek the information, be it advertisement
in matrimonial site or finding another skin specialist, or parlour,
amount of efforts an individual pays is enormous. This is also
happening because involvement of buyer is more vis-à-vis product
related involvement. Consumer will take time to evaluate and arrive
at the buying. From here, the real difference comes in namely post-
purchase evaluation – Is express service really an express service, did
chosen parlour made difference in my look, etc. This creates
association and unforgettable bonding.
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iii. Marketing mix: Generally, single marketing mix will support you.
Only when you add target which is more niche, you may need
additional tweak in your marketing mix.
iv. Product: Your product being service, you must tangibalize the same.
Product mix may not be very complex. Product differentiation through
product augmentation is feasible and in fact more beneficial.
v. Price: Price is a result of service plus additional support you may
offer before and after the service is rendered such as free pick-up and
delivery of cloths by cloths handling boutique outlet. Here, you are
not only charged for washing and ironing but also for entire seamless
service support rendered. Service augmentation and reliability, helps
you to get premium pricing.
vi. Place: Place here could be at your location or at the home of your
customer. Lakme Salon offers beauty care at their salon, but Urban
Clap provides you beauty care at your home.
vii.Promotion: Inducement to use your service once is a focus of any
promotion.
viii.People: One of the three additional Ps in service marketing. Your
customers first encounter is with your people and they judge you by
their interaction. Thus, trained manpower, well groomed, technology
savvy is crucial.
ix. Process: This is also one of the three additional Ps in service
marketing. Service delivery needs to be process driven to ensure
seamless and same experience every time.
x. Physical evidence: Physical evidence speaks for yourself. Please
recall a look and feel of local courier companies’ office claiming
international deliveries and DHL collection point. Which one will you
use for sending your daughter’s foreign university form? Have you
noticed DHL’s advertisement showing all the nature of vehicles -from
LCV to an aircraft? That is also physical evidence.
e. Core objective: Profit maximization through seamless, service delivery

in an experiential ways and entice your customers to come back again
and again.
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Activity B
Select Urban Clap as a service provider; please highlight noticeable

difference in their handling of 7P’s specific challenges.
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
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12.5 MULTI-LEVEL MARKETING

the consumption of final end customers, however, they utilized
distribution network built by individuals to reach their consumers. These
organizations are into direct selling. They bypass traditional distribution
channels. Here, the organization recruits network distributors and
handover minimum inventory necessary to get the distributorship. Each
of these network distributors can appoint number of sub-distributors
under them. Each distributor earns commission from not only sale
achieved by him but also on the sale achieved by his sub-distributors.
Essentially, it is a B2C kind of organization. E.g.: Amway, Tupperware,
Oriflame and the Balaji Multi-Services are leading organizations in India.
b. Focus: Network effectiveness and penetration is their focus to reach

consumers, far and wide. However, they too are equally conscious to
understand consumer need and wants besides need based product
development, value-based pricing, set up on experience centre vis-à-vis
advertisements and communication, participate in exhibitions to help
their individual’s network distributors to reach right set of consumers.
c. Competition: Limited competition from same format but they offer

products as a substitute to existing products thus they need to compete
on price, availability and speed of delivery. I may prefer to buy Amway
toothpaste but same is not available at the nearby general store. Thus,
it depends on my individual network distributor’s ability to render
prompt delivery.
d. 4P’s relevance: You will often find them in large volume product
market such as dental, beauty, medicines. Thus, they follow dual
approach, i.e., determine what is trending and understand what is
needed by their users, what problems they face using other products.
Their New product can be developed continuously post understanding
ever evolving consumer needs, price premium is possible if value is
offered, product at multiple price points cannot be introduced, no formal
product ordering process between network distributor and customer
exists, fluid level of segmentation, as experiencing and display being
critical, some companies have started experience centre and
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participation in exhibitions encouraged.
e. Core objective: Volume maximization through downline network’s

distributor’s number increasing and ensuring stock rotation and turnover
to bring collective benefit.
12.6 ONLINE MARKETING
a. Nature of the organization: These online marketing organizations is a

virtual place which has many categories of products (Flipkart, Big
Basket) shown available to customers through a portal or mobile APP. It
has the provision of ordering and payment processing and customer
care like order tracking. Many varieties of online marketing
organizations are coming up. Either you have exclusive online
organization or existing retail Store Company has also set up online
market for their range of products. Such set up needs to adhere to
business to consumer (B2C) marketing. However, it has reached a stage
where altogether different marketing approach is needed.
b. Focus: Customer centricity is their focus however their ways of

understanding customer needs is not from the product development but
from service point of view. Thus, they work their ways to make
interactiveness, have multiple range, seamless payment processing, and
effective customer care. They focus on sourcing and distribution
management.
c. Competition: Multi-player market with intense competition especially

from international players who have requisite experience, IT band width
and technology support.
d. 4P’s relevance: They not only have all products available, but this
platform has been also used for product launches like new mobile phone
launches. Currently pull is created through discount pricing. But private
labels and locally made products are more promoted wherein margins
can be improved by negotiating lower cost on the promise of higher
volume possibility. They offer place convenience and now few online
marketers have also started the brick and mortar model to service
customers (Lenskart has started now retail shops also). Extensive
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advertisement and promotion need to be carried out to get the attention

and induce consumers to buy from them.
e. Core objective: Resort to excellent customer support, make

distribution effective to save the cost of sale and operate through
minimal profit but ensure larger volume turnover.
12.7 INTERNATIONAL MARKETING
a. Nature of the organization: It is not about specific organizational

format. Most organizations will have one additional division which looks
at their international business. International business is considered
overall under their growth strategies. Companies have different options
to enter international market namely (i) Sole Distributor, (ii)
Collaborations, (iii) Joint Venture, (iv) Takeover, (v) Mergers or
Acquisitions, (vi) Licensing and (vii) Franchise. These options allow you
to tap international market without actually setting up your full-fledged
operations. These organizations operate as per the business format –
either B2C or B2B/service marketing.
b. Focus: Focus depends on whether such organization is B2B or B2C

format of business. However, customer centricity remains key focus.
However, their ways of understanding customer needs are not from the
product development but from service point of view as competition
faced is intense. Thus, they work their ways to make inter-activeness,
have multiple ranges, seamless payment processing, and effective
customer care. They focus on sourcing and distribution management.
c. Competition: Multi-player market with intense competition especially

from international players who have requisite experience, IT band width
and technology support.
d. 4P’s relevance: Generally used for existing successful product to

capture its growing popularity. However, local level modifications and
feature additions are provided – like Indian electrical appliances will
need different electrical current capability and plug point system due to
different supply system abroad. Price may be usually kept as market
penetration pricing. Customer value is created, and prices are
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accordingly tweaked. Need to adhere to local marketing communication

challenges (release same advertisement or re-shoot with foreign actors,
or you need a different story, etc., decides your channel, message, etc.
Promotion also needs to focus on increasing trial, ensure repeat
purchases, improve referrals, etc. Place strategy needs to localize as per
the channel dynamics in that country.
e. Core objective: Initially, it aims to establish itself, post which market

penetration and then exploiting full potential from the market. Resort to
excellent customer support, make distribution effective to save the cost
of sale and operate through minimal profit but ensure larger volume
turnover.
12.8 MARKETING AT THE NON-PROFIT ORGANIZATION
a. Nature of the organization: Non-profit organizations are dedicated to

furthering a particular social cause or advocating for a shared point of
view. In economic terms, it is an organization that uses its surplus of
the revenues to further achieve its ultimate objective, rather than
distributing its income to the organization's shareholders, or members.
Non-profits are tax-exempt, meaning they do not pay income tax on the
money that they receive for their organization. Nonprofits are not driven
by generating profit, but they must bring in enough income to pursue
their social goals. Nonprofits are able to raise money in different ways.
This includes income from donations from individual donors or
foundations; sponsorship from corporations; government funding;
programs, services or merchandise sales. They can operate in religious,
scientific, research, or educational or other philanthropic work. Nonprofit
organizations are accountable to the donors, founders, volunteers,
program recipients, and the public community.
b. Focus: Serving the needy for the cause adopted by the organization is
the main focus. For doing the cause specific tasks, you need funds for
which donors needs to be found/searched/made aware about your work.
You need volunteers to work for you. It is not feasible to expect that
they will work free without honorarium. You need to maintain balance
between the funds available, cost of doing your work, and staff support
and ensure complete transparency as trust is the only constant.
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c. Competition: You are operating in multi-societal causes, multiple non-

profit organization each needing funding from philanthropists who give
regular or once in a while donations. The competition to get desired
donation is stiff. Also, getting volunteers is also challenging. Many such
organizations have started hiring professionals, MBAs etc.
d. 4P’s relevance: Their product is their noble cause, there is nothing like
price but for them to get the desired donation, such organization run
various donation scheme price for which needs to be decided. However,
it generally works on cost plus markup method. They also do
promotions to attract the attention of people looking for avenues to
donate (either for tax savings or genuinely to help), conduct road shows
to get the attention and spot donations etc.
e. Core objective: Not driven by profit but to remain dedicated to the

cause, they must generate revenue and achieve the balance between
the cause, the expenditures and funds availability.
12.9 MARKETING AT THE GOVERNMENT ORGANIZATION
a. Nature of the organization: Government organizations are dedicated

to serve the common man – transport, railway, telecommunication,
electricity, aviation, banking and more. In fact, many needs to balance
between servicing different classes in the society – lower, middle and
higher vis-à-vis industry again classified as small, medium and large. All
government organizations are not no profit: no loss organization.
However, profitability not at the cost of exploitation is their motto. These
government organizations have to serve the dubious role of product
maker and service provider both in many cases.
b. Focus: Focus on building core sectors of the country that provides the
impetus to the nation building, serve common man and provide
momentum to the industrialization across the country.
c. Competition: From the era of no competition or limited competition,

these government organizations are facing stiff competition post India
opened its gates to competitive economy in 1990 onwards. They still
remained protected for almost 10 years thereafter but in about last two
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decades many local player and foreign companies have come in

transport (private players allowed alongside public transport), railway
(opened to private operators as few routes have started playing private
trains first from ITCTC), telecommunication (Besides TNL/BSNL, we now
have Vodafone-Idea, Airtel, Jio), electricity (Tata power, Adani power),
aviation (Air-India, Indigo, SpiceJet), banking (Nationalized banks,
private banks like HDFC, AXIS and now payment banks like Bandhan
bank).
d. 4P’s relevance: Their product is their service in most cases except

product manufacturing government organization like Steel Authority of
India, refineries, etc. Even product manufacturing government utilizes
service driven approach. For them also 4Ps and in some cases 7Ps are
equally important. Lack of their focus on segmentation, consumer
buying behaviour changes, marketing mix and lack of customer
centricity is creating their downfall (Air-India on the verge of being sold
or closed, BSNL/MTNL giving VRS to over 92,000 employees are some
examples)
e. Core objective: Driven by the nation building focus, core objective is to

develop core sector, bring technology at the forefront to provide goods
and services that touches the life of millions and yield reasonable profit
doing it for its survival and development.
We have studied different formats of marketing in above sections. Science

of marketing management is also applicable to these formats.
Activity C
Illustrate the difference between the non-profit organization and
government organization on the points of their nature of organization and
competition.
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
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12.10 WHAT UNIFIES THE DIFFERENT FORMATS OF

MARKETING?
After understanding different formats of marketing, we need to understand
what unifies the different formats of marketing. Following points unifies the
different marketing formats;
• Customer need understand is paramount in developing customer centric
marketing organization.
• Segmentation-targeting and positioning plays important role in every
marketing formats.
• Consumer buyer behaviour across different formats differs and thus it
conveys that any marketing strategy/tactics without consideration to it is
mere theory and unlikely to succeed.
• 4P’s/7P’s (as the case may be) needs to be considered as strategic
aspects.
• Branding plays its crucial role in every format.
• Competitive strategy is the derivative of marketing environment, your
SWOT and competitive position you have vis-à-vis competition.
• Differentiation remains as a critical factor for winning thus needs
strategic look.
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12.11 SUMMARY
After studying the entire aspect of marketing management from the

perspective of B2C marketing – what marketing management is and its
different facets, we covered the understanding of different formats of
marketing management namely – B2C, B2B, Service marketing, multi-level
marketing, online marketing, non-profit organization and government
organization.
We have covered (a) Nature of the organization, (b) Focus, (c)

Competition, (d) 4P’s/7P’s relevance and (e) Core objective for each of the
above formats. For B2C, B2B and Service marketing, we have explored
various points under 4P’s/7P’s such as segmentation, consumer buyer
behaviour, marketing mix, product, price, promotion, place, people,
process and physical evidence. Multi-level marketing, online marketing,
non-profit organization and government organization represents similarity
with service marketing thus, we have briefly understood separate aspects.
We have also understood what unifies the different formats vis-à-vis

marketing.
One must note that overall the science of marketing management is

applicable to all the formats.

1. Explain nature of B2C and B2B organizations.
2. Explain the difference between B2C and Service marketing organization
in terms of 4P/7Ps relevance perspective.
3. Explain the competition perspective in B2C, B2B and Service marketing
organizations.
4. How will you handle segmentation in B2B marketing?
5. What are the 7Ps in service marketing and explain them briefly.
6. Describe the nature of online marketing organization, their focus and
competition aspects.
7. Describe the nature of government organization, competition scenario
and core objectives of government organizations.
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1. Organizations which produce goods for the consumption of final end

customers, adhere to _______ marketing format.
(a) Business to business (B2B)
(b) Service marketing
(c) Business to consumer (B2C)
(d) Online marketing
2. In any Business to Consumer (B2C) organization, _________ is their

focus right from need understanding (home service support by Urban
Clap), to product development (eyeliner, facial, tissue), deciding it’s
positioning (Thanda matlab Coco-cola).
(a) Customer centricity
(b) Customer service
(c) Customer delight
(d) Customer loyalty
3. Rational, industry or application wide segmentation is followed in any

____________ marketing format.
(a) Business to consumers (B2C)
(b) Business to business (B2B)
(c) Service marketing
(d) Online marketing
4. Core task of service marketer is to make the intangible service delivery

part, _________.
(a) Monetary part
(b) Experiential
(c) Memorable
(d) Tangible
5. Core objective of ___________ is volume maximization through

downline network’s distributors number increasing and ensuring stock
rotation and turnover to bring collective benefit.
(a) Government organization
(b) Non-profit organization
(c) Service marketing organization
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6. __________ are not driven by profit but to remain dedicated to the

cause, they must generate revenue and achieve the balance between
the cause, the expenditures and funds availability.
(a) Service marketing organizations
(b) Non-profit organizations
(c) Service marketing organization
Answers: 1. (c), 2. (a), 3. (b), 4. (d), 5. (d), 6. (b).
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REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
Video Lecture
415
DIFFERENT CONCEPTS OF MARKETING
Chapter 13
Different Concepts Of Marketing
Objectives
• different concepts of marketing
• each concepts, their salient aspects, process involved
• each concepts, their advantages and disadvantages
Structure:
13.1 Introduction
13.2 Affiliation Marketing
13.3 Co-branding Marketing
13.4 Collaborative Marketing
13.5 Societal Marketing
13.6 Social Marketing
13.7 Summary
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13.1 INTRODUCTION
In earlier chapter, we have essentially studied different formats of

marketing such as B2B, B2C, international marketing and more. After
understanding different formats of marketing, we need to understand
different concepts of marketing management. Name of the concept reveals
to us essential idea behind concept. For each concept, we will understand
key idea and salient aspects for the same.
Different concepts of marketing are as follows:

1. Affiliation marketing
2. Co-branding
3. Collaborative marketing
4. Societal marketing
5. Social marketing
It is important to learn these marketing concepts. It has a strategical

significance beyond being mere concept. They will come into your
consideration post strategic assessment is over and you need to decide
strategic pathways including tactics. However, marketing management’s
other aspects remains same or needs to tweak to suit the industry and
organization’s need.
13.2 AFFILIATION MARKETING
What is Affiliate Marketing?
Affiliate marketing is a type of performance-based marketing in which a

business rewards one or more affiliates for each visitor or customer
brought by the affiliate's own marketing efforts.
The idea behind it is that you promote other people’s products, often
through an affiliate network, earning a commission if people actually end
up buying thanks to your marketing.
It’s based on revenue sharing. If you have a product and want to sell more,
you can offer promoters a financial incentive through an affiliate program.
If you have no product and want to make money, then you can promote a
product that you feel has value and earn an income from it as an affiliate
marketer.
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In affiliate marketing there are about 3 to 4 different parties that are

involved – the merchant, the network, the publisher, and the customer.
• The merchant (also known as 'advertiser' or 'retailer' or 'brand')
• The network (that contains offers for the affiliate to choose from and
takes care of the payments)
• The publisher (also known as 'the affiliate')
• The customer
Fig. 13.1: How Affiliate Marketing Program Works?
This system is more predominant in an online, social media marketing and

web marketing. In normal offline business transaction, it was known as
commission.
The idea behind it is that it’s the practice of recommending or promoting

other people’s or company’s products or services to potential customers,
generating a sale and earning a commission in return thanks to your
marketing.
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When it comes down to the actual marketing, there are two sides of an
affiliate equation: the product creator and seller and the affiliate
marketer. Therefore, affiliate marketing can be seen as the process of
spreading product creation and product marketing across different parties,
where each party receives a share of the revenue according to their
contribution. It’s not just the promotion or just the product creation that
defines who you are as an affiliate marketer.
Stakeholders of Affiliate Marketing System
a. The Merchant: Sometimes also known as the creator, the seller, the
brand, the retailer, or the vendor. This is the party that creates the
product. It can be a big company or, it can be a single individual.
From solo entrepreneurs to startups to massive Fortune 500 companies,

anyone could be the merchant behind an affiliate marketing program.
They just have to have a product to sell.
b. The Affiliate: This party is sometimes also known as the publisher.

Affiliates can also range from single individuals to entire companies. An
affiliate marketing business can produce remuneration in proportion to
efforts put and effectiveness of what she is doing to promote the
product.
The affiliate actually markets the product using marketing. An affiliate

promotes one or multiple affiliate products and tries to attract and
convince potential customers of the value of the merchant’s product so
that they actually end up buying it.
c. The Consumer: The customer or consumer makes the affiliate system

go ’round. Without sales, there aren’t any commissions to hand out and
no revenue to be shared.
The affiliate will try to market to the consumer on whatever channel

they see fit, whether that’s a social network, digital billboards or through
a search engine using content marketing on a blog. The consumer will
not typically pay a higher price to the affiliate marketer, as the cost of
the affiliate network is already included in the retail price.
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d. The Network: Only some consider the network part of the affiliate
marketing equation. Networks are aggregators or support service
provider so that you don’t need to do much to be an affiliate – handle
the payment and product delivery puts a more serious note on your
affiliate marketing.
Sometimes, affiliates have to go through an affiliate network to even be

able to promote the product. For example, this happens if the merchant
only manages their affiliate program on specific network.
The affiliate network then also serves as a database of lots of products,

out of which the affiliate marketer can choose which to promote.
Steps in Affiliate Marketing
Following steps are involved in initiating affiliate marketing program.
Fig. 13.2: Steps in Affiliate Marketing Program
We cover above steps briefly as follows. This is written from the affiliate
point of view.
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• Market research: You conduct market research to understand what is

getting/likely to get popular, for which consumers may prefer to search
lot of information online and may buy it online.
• Niche selection: You will select few from the above list of feasible
product options. Rest will be developing your business case post knowing
likely demand, likely affiliation commission, likely investment, how must
you can pull and convert etc.
• Website creation: You need to create your website fir the chosen niche.
You may already have a website, then you need to create a separate
section and ensure new section gets maximum eyeballs. You may ride on
product provider’s website it offers you linking feasibility or ride on
affiliate network website.
• Building website: Based on your above decision, you build your

website, do proposer SEO, do various website traffic generation backend
activities, invest in SEO marketing to ensure traffic and popularity of your
website.
• Promoting products: From here, various marketing management

aspects gets triggered – offer, call for action, increase visibility on
relevant other websites using various tools and schemes. You also study
competition scenario about intensity of number of affiliates, their
promotion and offers. Creating compelling offer remains a big challenge.
• Making sales: When you succeed on above stages, you will be able to
fulfil customers/prospects info needs and you have offered compelling
offer for him to buy. Sale is complete when customer submits order.
Payment is dependent on schemes offered by the product provider – if
Cash on delivery is a possible feature, then you can’t force customer to
pay while ordering. However, sale is considered as complete ONLY AFTER
payment is received and return period has expired. Post, this you qualify
for receiving your affiliation commission.
• Getting affiliate commission: At the backend of this set up, there are
programs which enable you to know, which order has materialized
through your initiative. This enables you to keep track of your due
affiliation commission. You must be careful about various harmful
programs, which converts your credit in the name of another person.
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When the bridge of transparent dealing is built, you get your full
payments in time. However, there are cycles of payment releases by the
product provider, which one must understand.
Compensation Method under affiliate Marketing Program
As per the published report on western countries, eighty percent of affiliate

programs today use revenue sharing or pay per sale (PPS) as a
compensation method, nineteen percent use cost per action (CPA), and the
remaining programs use other methods such as cost per click (CPC) or cost
per mille (CPM, cost per estimated 1000 views).
• Performance based compensation: In the case of cost per mille/click,

the publisher is not concerned about whether a visitor is a member of the
audience that the advertiser tries to attract and is able to convert,
because at this point the publisher has already earned her commission
because visitor has clicked on her advertisement. This leaves the greater,
and, in case of cost per mille, the full risk and loss (if the visitor cannot
be converted) to the advertiser (product provider).
• Cost per action/sale methods require that referred visitors do more

than visit the advertiser's website before the affiliate receives a
commission. The advertiser must convert that visitor first. It is in the
best interest of the affiliate to send the most closely targeted traffic to
the advertiser as possible to increase the chance of a conversion. The
risk and loss are shared between the affiliate and the advertiser.
Affiliate marketing is also therefore called "performance marketing", in

reference to how sales employees are typically being compensated. Such
employees are typically paid a commission for each sale they close, and
sometimes are paid performance incentives for exceeding objectives.
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Advantages of Affiliate Marketing

a. Low cost to get started. Most affiliate programs are free to join, so your
costs are usually related to your referral/marketing methods
b. No need to create a product or service
c. Don’t have to stock or ship products
d. Work anytime and from anywhere if you have internet access
e. Passive income potential, depending on how you market your affiliates
programs
f. Can be added on to current home business to create an additional
income stream
Disadvantages of Affiliate Marketing

a. It might take some time and effort to generate the amount of traffic
needed to result in income
b. Though affiliate commission is not loaded in the price, most customers
may feel they need to pay more. Thus, they prefer to search more and
use your platform for information purpose only
c. Product provider may not be able to offer you better deal vis-à-vis large
customers especially online aggregators. As a result, your price deal
may not be as attractive and thus conversions may be low
d. A bad affiliate referral can ruin your credibility among customers. It’s
important that you choose quality businesses to work with to avoid this
e. Some companies have been known not to pay, although there are ways
to screen and choose quality affiliate programs
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13.3 CO-BRANDING MARKETING
What Is co-branding?
Co-branding is a marketing strategy that involves strategic alliance of

multiple brand names jointly used on single product or service – Indigo-
City Bank VISA card, giving you double points for every miles you travel.
Co-branding is a marketing strategy that utilizes multiple brand names on

a good or service as part of a strategic alliance. Also known as a brand
partnership, co-branding encompasses several different types of branding
collaborations, typically involving the brands of at least two companies.
Each brand in such a strategic alliance contributes its own identity to create
a unique product/service offering. The point of co-branding is to combine
the market strength, brand awareness, positive associations, and cachet of
two or more brands to compel consumers to pay a greater premium for
them.
Co-branding is a useful strategy for many businesses seeking to increase

their customer bases, profitability, market share, customer loyalty, brand
image, perceived value, and cost savings. Many different types of
businesses, such as retailers, restaurants, car makers, and electronics
manufacturers, use co-branding to create synergies based on the unique
strengths of each brand. Simply put, co-branding as a strategy seeks to
gain market share, increase revenue streams, and capitalize on increased
customer awareness.
Please remember that Co-branding is a strategy in itself but introduced

here as a concept for you to get basic idea. Also, it is not the only and full-
fledged strategy for any product/service.
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Types of Co-branding
Co-branding are of two types namely Product-based co-branding and

Communications based co-branding.
• Product-based co-branding: One of the co-branding marketing

strategy that involves linking of multiple brands from different companies
in order to create a product indicative of their individual identities –
Starbucks and Spotify. Product-based co-branding may be categorized
into Parallel and Ingredient co-branding.
❖ Company-wide co-branding: Here, company having multiple product
lines can do co-branding within the two brand of different nature of
products under them. HUL, for example, makes soaps also and skin
care products also. HUL can co-brand Lux with Pond’s cold cream.
❖ Parallel co-branding: Parallel co-branding is the marketing strategy
where multiple brands come together and create a combined brand.
❖ Ingredient co-branding: Ingredient co-branding is a marketing
strategy carried out by a supplier where an ingredient of a product
chooses to position its brand, e.g., Intel inside is found on most
computers, laptops, etc.
❖ Promotional co-branding: When more than one brand comes
together for any promotional opportunity, it is considered as
promotional co-branding. Sponsorship is one such form. You have main
sponsor, followed by sub-sponsor may be for specific purpose like
courier, airline, etc. Another example could be that of Citibank/
American Airlines/Visa credit card partnership.
❖ Value chain co-branding: Here, two brands can come together to
create a better value chain benefits – say India’s largest laundry chain
partners with logistics service provider to ensure free pick-up and
delivery of your cloths.
❖ National to local co-branding: occurs when a local small business
teams up with a national brand or network to target local audiences
and interests – VISA co-branding credit cards with local retailers.
❖ Joint venture co-branding: This is another form of co-branding
defined as two or more companies going for a strategic alliance to
present a product to the target audiences – British Airways and
Citibank formed a partnership offering a credit card where the card
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owner will automatically become a member of the British Airways

Executive club.
Criteria for the Successful Product Based Co-branding

a. Co-brand only with companies sharing complimentary values
b. Co-brand with only product which is considered as the best in class
c. Co-brand with organization which gives full access and control in all
their marketing communication. This will minimize misrepresentation of
your brand
Advantages of Product-based Co-branding

(a) Value addition and differentiation
(b) Access to new customers
(c) Better integrated communication
(d) Positioning strengthening
(e) Reduction of product introduction cost
(f) Better consumer loyalty
Disadvantages of Product-based Co-branding

(a) Loss of control
(b) Poor performance of co-brand may impact your sale too
• Communications-based Co-branding: One of the two co-branding

marketing strategy that involves linking of multiple brands from different
companies in order to jointly communicate and promote their brands. For
example, Ariel soap and Whirlpool launch a co-branded advertising
campaign where Ariel was endorsed by whirlpool.
Advantages of Communication-based Co-branding

(a) Endorsement opportunities
(b) Sharing advertising costs
(c) Resource sharing
(d) Enhances awareness
Disadvantages of Communication-based Co-branding

(a) Difference of opinion
(b) Negative co-brand image
(c) Poor performance of co-brand
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Activity A
Study the concept of co-branding and lists Indian examples against each of
the alternative formats of co-branding.
_______________________________________________________
_______________________________________________________
_______________________________________________________
_______________________________________________________
13.4 COLLABORATIVE MARKETING
What is Collaborative Marketing?
Collaborative marketing is a marketing strategy that involves working in

unison with similar companies to promote brand, minimize costs and
increase sales. Collaborative marketing bolsters exposure through side-by-
side advertisement with competitors. It is a popular and effective system,
especially in online presences.
As per the Forbes.com, Collaborative Marketing is the process of aligning

your company’s interests, resources, and marketing muscle with other like-
minded companies to accomplish much more than you might be able to do
on your own.
How Does Collaborative Marketing Works?
a. First, you identify a brand that you might be interested in partnering

with. This brand shouldn’t be a direct competitor, but they should be
one that complements your own brand and shares a similar audience or
marketing goal.
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b. After that, you can reach out to that brand to ask them if they’d be
interested in collaborating with you. Typically, collaborators will use
either their budgets or their reach as cross-promotional currency.
Joint budget pulling: This option mean pooling your marketing

budgets together to purchase a joint advertisement that you wouldn’t
have been able to afford alone.
Swapping on reach: This option mean promoting each other’s products

to your own audiences in order to double your reach. Both swaps the
power of each other’s reach.
c. Collaborative marketing can take many forms. You need to decide form/
s you are comfortable with. It could range from something as simple as
giving a ‘shout out’ to another company on social media in exchange for
one in return, to a full-scale joint ad campaign and anything in between.
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Five Different Formats of Collaborative Marketing
When you and a like-minded business collaborate, you both agree to

promote what you’re collaborating on. This gives you the opportunity to
reach that business’s audience as well as your own — an audience you
wouldn’t have had the opportunity to reach otherwise.
1. Collaborate on an Idea: A local movie theater and the restaurant next

door might collaborate on a special idea – Weekend Bonanza — bring in
your ticket stub and get a discount on a drink. If the movie theater has
a sign advertising this promotion, it’s suggesting to all its patrons that
the restaurant next door is the place to go after the movie. In
exchange, the restaurant is offering a bit of a discount.
2. Co-host an event: When you have an idea which can be co-hosted

then you have a collaboration idea, e.g., Dirt-track racing where
automobile manufacturer can collaborate with lubricant manufacturer
such as Toyota collaborating with Castrol.
3. Showcase another business: If you have any platform of your own,

which has requisite reach, then you can promote another business. On
digital platform if you have Blog, then you may publish articles about
other business, CEO’s interview as Expert Speak, etc. If you have
physical store front selling cosmetics also, you may invite other
complementary business to promote. Say you may invite popular
Beauty Parlour team to give free beauty tips or discounted facial,
wherein either your products are put on display and/or recommended
for consumption.
4. Set up referral partnership: Here, you offer a commission or free

services when your partner gives you a referral. Alternatively, you both
can agree to share referrals with each other.
5. Shoutout on social media: Here, you collaborate and simply share

each other’s posts or shout out to each other on social media, giving
each other equal share of voice.
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Advantages of Collaborative Marketing

1. Reach new audiences: Brand collaborations can potentially double
your audience size and help you to reach highly targeted potential
customers.
2. Cut costs: Splitting the cost of a traditional ad between multiple brand
partners can dramatically reduce costs.
3. Strengthen brand: Collaborative branding with the right partner brand
can strengthen your brand’s credibility and recognition by association.
4. Combined expertise: Two brands working together means you get to
leverage the best of both of your strengths to create bigger and better
campaigns.
Disadvantages of Collaborative Marketing

1. Takes time to set up: Setting up a collaborative marketing campaign
requires a lot of back and forth communication; it can take a lot of time
to get going.
2. Potentially one-sided: In bad brand collaboration, the benefits might
be weighted unequally, with one company coming away much better off.
That’s why it’s important to choose the right partner brand.
3. Creative conflict: You have to be willing to compromise to create a
campaign that works for both brands, and that means overcoming some
creative conflicts.
4. Conflicting standpoint: Working together can be difficult if you
disagree with your partner brand about the details and execution of
your campaign, scheduling, frequency, etc.
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13.5 SOCIETAL MARKETING
What is Societal Marketing?
The societal marketing is a marketing concept that holds that a company

should make marketing decisions not only by considering consumers'
wants, the company's requirements, but also society's long-term interests.
The societal marketing concept holds that the organization's task is to

determine the needs, wants, and interests of a target market and to deliver
the desired satisfactions more effectively and efficiently than competitors in
a way that preserves or enhances the well-being of both the individual
consumer and society in general. It is closely linked with the principles of
corporate social responsibility and of sustainable development.
The Societal Marketing Concept puts Human welfare on top before profits
and satisfying the wants.
Societal Marketing emphasizes on social responsibilities and suggests that

to sustain long-term success, the company should develop a marketing
strategy to provide value to the customers to maintain and improve both
the customers and society’s wellbeing better than the competitors.
What is Behind This Concept of Societal Marketing?
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Deep routed decades old objectives are coming in forefront due to all round
awareness. It includes:
• Social responsibility implies that a business decision maker is obliged to
take actions that also protect and enhance society's interests. She earns
out of using natural resources, lives among individuals that forms her
social circle. Thus, she cannot abstain from the responsibility to protect
the environment.
• Business has the responsibility to help the consumer. It is the duty of
business to promote proper consumption values.
• Enlighten consumer about how to dispose electronic waste.
• Business leaders may help in mutual understanding of the reasons for
societal role they wish to empower themselves with.
Three Considerations under Societal Marketing
Companies should balance three considerations in setting their marketing

strategies: company profits, the consumer wants, and society’s interests.
• Society (Human Welfare): Companies must make sure the products,

services, actions, investment innovations servers society first.
• Consumers (Satisfaction): Products and services should be satisfying
the consumer’s needs.
• Company (Profits): Building long-term customer relationships, being
socially responsible, and providing satisfactory products are important for
profit-making and wealth maximization.
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Instruments of Societal Marketing
Philip Kotler identified four categories of products based on long-term

benefits and immediate satisfaction:
• Deficient products bring neither long-run nor short-term benefits.
• Pleasing products bring a high level of immediate satisfaction but

cause long-term harm long in society.
• Salutary products bring low short-term satisfaction, but benefits the

society in the long run.
• Desirable products bring both long-run benefits and immediate

satisfaction.
Based on societal marketing, Kotler suggested deficient products must be

eliminated from the market.
The pleasing and salutary products need modification so that they can
bring both long-run benefits to society and immediate satisfaction to the
consumer.
Meaning that these products should be launched on the market without

turning them into desirable products.
This way, rather than focusing on selling products, the focus is on

consumer and society well-being.
Advantages of Societal Marketing

• It helps to build a better image for the company.
• It gives a competitive advantage over the competitors.
• Useful in customer retention and long-term relationships.
• Increases sales and market share.
• Facilitate expansion and growth in the long term.
• Products and company policies should prioritize social welfare and society
in general.
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• Economic resources are properly used.

• Societal marketing raises the living standard of people in society.
• It ensures economic planning more significant and more fruitful to
society.
Disadvantages of Societal Marketing
• Message clarity: Often, it is difficult to convey what exactly you are
doing and how are you contributing in societal cause.
• Tapering organizational motivation: One particular organization may
do everything possible to be focused on societal aspect but soon their
product is copied by others. Not only that, many may not be actually
changing the product but claims it to be environment friendly. There is
not legal mechanism which can prevent it.
• Audience price: The audience price in traditional marketing is how
much money the market must literally pay for the product or service. In
societal marketing, the price is different. People must often give up time,
comfort or simply old habits in order to follow a societal marketing
message.
• Limited funding: Marketing benefit is available in the long-run. In the
interim, it is difficult to calculate ROI and thus, generally funding gets
reduced.
Activity B
Select any Indian conglomerate organization like Birla, Tatas and study
their societal marketing approach, initiatives and what have they been able
to leverage out of societal marketing.
__________________________________________________________
__________________________________________________________
__________________________________________________________
_________________________________________________________
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13.6 SOCIAL MARKETING
What is Social Marketing?
Social marketing is an approach used to develop activities aimed at

changing or maintaining people’s behaviour for the benefit of individuals
and society as a whole.
Combining ideas from commercial marketing and the social sciences, social
marketing is a proven tool for influencing behaviour in a sustainable and
cost-effective way.
Social marketing has the primary goal of achieving "social good".

Traditional commercial marketing aims are primarily financial, though they
can have positive social effects as well. In the context of public health,
social marketing would promote general health, raise awareness and
induce changes in behaviour.
Social marketing seeks to develop and integrate marketing concepts with

other approaches to social change. Social marketing aims to influence
behaviours that benefit individuals and communities for the greater social
good. The goal is to deliver competition-sensitive and segmented social
change programs that are effective, efficient, equitable and sustainable.
Biggest initiative of our time is encouraging the use of sanitary pads.
Health warning on cigarette pack is not making them doing social
marketing. It is imposed on them through legislation.
It helps you to decide:

• Which people to work with
• What behaviour to influence
• How to go about it
• How to measure it
Social marketing is not the same as social media marketing. Social media
may be part of the social marketing toolkit for engaging with certain
audiences, but the distinction is very important between media and
marketing.
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Single Objective
The goal of social marketing is always to change or maintain how people

behave. It is far beyond spreading awareness.
Social Marketing Benefits People and Society
This is the value – perceived or actual – as it is defined by the people who

are targeted by a social marketing intervention. It is not what is assumed
to benefit them by the organization that is trying to encourage the
behaviour change.
Fig. 13.3: Behaviour Change Model under Social Marketing
From the above figure, what defines a person and how do you understand
him and create an influence on him that really leads to a change from
within. Making him aware is not the objective of social marketing, making
him change her behaviour for the good is the only objective.
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After understanding basics of social marketing, we can now enlarge its

definition little more, aligned with today’s life. Social marketing is the
application of marketing principles to enable individual and collective
ideas and actions in the pursuit of effective, efficient, equitable, fair and
sustained social transformation". The new emphasis gives equal
weight to the effects (efficiency and effectiveness) and the process
(equity, fairness and sustainability) of social marketing programs. Together
with a new social marketing definition that focuses on social
transformation, there is also an argument that "a systems approach is
needed if social marketing is to address the increasingly complex and
dynamic social issues facing contemporary societies”.
A Social Marketing Approach
Even if you don’t take social marketing any further, just considering these
four questions will add value to your social marketing projects and policies.
• Do I really understand my target audience and see things from their
perspective?
• Am I clear about what I would like my target audience to do?
• For my target audience, do the benefits of doing what I would like them
to do outweigh the costs or barriers to doing it?
• Am I using a combination of activities in order to encourage people to
achieve the desired action?
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Ways to Pursue Your Social Marketing Initiative
You need to build following three aspects to have proper social marketing
initiative build up for your organization.
a. Policy: Social marketing helps to ensure policy is based on an

understanding of people’s lives, making policy goals realistic and
achievable. Policy example: Sanitation for every home.
b. Strategy: Social marketing enables you to target your resources cost-

effectively and select interventions that have the best impact over time.
Strategy example: Instigating and then persuasive message from
people brand ambassador Amitabh Bachchan.
c. Implementation and delivery: Social marketing enables you to

develop products, services and communications that fit people’s needs
and motivations. Goal based plan to district collectors.
Social marketing uses the benefits of doing social good to secure and
maintain customer engagement. In social marketing the distinguishing
feature is therefore its "primary focus on social good, and it is not a
secondary outcome. Not all public sector and not-for-profit marketing is
social marketing.
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Organizations can use standard marketing approaches to improve the

promotion of their relevant services and organizational aims. This can be
very important but should not be confused with social marketing where the
focus is on achieving specific behavioural goals with specific audiences in
relation to topics relevant to social good (e.g., health, sustainability,
recycling, etc.). For example, a 3-month marketing campaign to encourage
people to get an H1N1 vaccine is more tactical in nature and should not be
considered social marketing. Instead, a campaign that promotes and
reminds people to get regular check-ups and all of their vaccinations when
they're supposed to encourage a long-term behaviour change that benefits
society can be considered social marketing.
Social marketing can be confused with commercial marketing. A

commercial marketer may only seek to influence a buyer to purchase a
product. Social marketers have more difficult goals. They want to make
potentially difficult and long-term behaviour changes in target populations,
which may or may not involve purchasing a product. For example, reducing
cigarette smoking or encouraging the use of condoms have difficult
challenges to overcome that go beyond purchasing decisions.
Social marketing is sometimes seen as being restricted to a client base of

non-profit organizations, health services groups, the government agency.
However, the goal of inducing social change is not restricted to this narrow
spectrum of organizations. Any and every organization can consider doing
social marketing. Marketing, Public relations or social responsibility
departments may champion social causes such as funding for the arts,
which would involve social marketing.
Social marketing should not be confused with the societal marketing

concept which was a forerunner of sustainable marketing in integrating
issues of social responsibility into commercial marketing strategies. In
contrast to that, social marketing uses commercial marketing theories,
tools, and techniques to social issues.
Social marketing applies a "customer-oriented" approach and uses the

concepts and tools used by commercial marketers in pursuit of social goals
like anti-smoking campaigns or fundraising for NGOs.
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Social marketers must create a competitive advantage by constantly

adapting to and instigating change. With climate change in mind (or
disposal of electronic waste, AIDS prevention etc.), adaptations to market
changes are likely to be more successful if actions are guided by
knowledge of the forces shaping market behaviours and insights that
enable the development of sustainable competitive advantages.
Advantages of Social Marketing

• Unique approach creates brand soothing effect: Any distinct efforts
on social marketing will create soothing effect on the brand and will help
you in the long run.
• Helps brand to adopt changing social norms: Constantly pursuing
social marketing concept over long-term will give you ground
understanding about the changing social norms. If you bring these
insights in to product development, you stand to create a differentiated
product.
• Behavioural shift will help everyone in the long run: Behavioural
shift from unhealthy practices will see changes in the lives of the
individuals and families. Happiness is the base for person considering
need based satisfaction by elevating her choices. It brings all-round
favourable market conditions.
• It helps to eradicate social evils that affect the society and quality of life.
• Social marketing is one of the cheapest ways of marketing.
• One of the best advantages of social marketing is that anyone can take
advantage of it, even from their own home.
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Disadvantages of Social Marketing

• Over dependence on communication: Social marketing depends more
on communication to influence behavioural change. This is because there
is rarely any possibility of demonstration, etc. However, interactive media
as facilitated live pictorial representation, impact on health using 2D
animations, testimonials and more.
• Very east to be considered as meaningless: Despite your best
intentions, recipients have inbuilt natural affinity to reject message they
don’t want to receive. Thus, needs sustained efforts to keep
communication.
• Too many handling limited areas: There is a general tendency to
adopt most prevailing social cause and as a result, too many will jump to
handle limited subject. Due to which multiple nature of messages,
methodologies become available. However, it has its own pitfalls due to
which affected person keeps jumping from one to another.
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13.7 SUMMARY
We have studied different concepts of marketing such as affiliate

marketing, co-branding, collaborative marketing, societal marketing, and
social marketing.
Affiliate marketing is a type of performance-based marketing in which a

brought by the affiliate's own marketing efforts. In affiliate marketing there
are about four different parties that are involved – the merchant, the
network, the publisher, and the customer. Stakeholders of affiliate
marketing system are the merchant, the affiliate, the consumer, and the
network. Affiliate marketing involves multiple steps right from the market
research to development of website, generating traffic and ensuring sale.
Compensation method under affiliate marketing program can be either
performance based or cost per action/sale.
Co-branding is a marketing strategy that involves strategic alliance of

multiple brand names jointly used on single product or service – Indigo-
City Bank VISA card, giving you double points for every miles you travel.
Co-branding are of two types namely -(a) product-based and (b)
communications-based co-branding. Under product-based co-branding,
different options are there such as company-wide co-branding, parallel co-
branding, ingredient co-branding, promotional co-branding, value chain co-
branding, national to local co-branding and joint venture co-branding.
Collaborative Marketing is the process of aligning your company’s interests,

resources, and marketing muscle with other like-minded companies to
accomplish much more than you might be able to do on your own. Another
product with the shared market, similar buyer personas, complimentary
brand identifies having similar marketing goals can collaborate. Five
different formats of collaborative marketing exist such as a) collaborate on
an Idea, (b) co-host an event, (c) showcase another business, (d) set up
referral partnership and (e) shout out on social media.
The societal marketing is a marketing concept that holds that a company

should make marketing decisions not only by considering consumers'
wants, the company's requirements, but also society's long-term interests.
Three considerations involved under societal marketing are: (a) society
(Human Welfare), (b) consumers (Satisfaction) and (c) company (Profits).
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Philip Kotler has identified four categories of products based on long-term

benefits and immediate satisfaction and suggested what must be done by
the organization pursuing societal marketing.
Social marketing is an approach used to develop activities aimed at

changing or maintaining people’s behaviour for the benefit of individuals
and society as a whole. The goal of social marketing is always to change or
maintain how people behave. It is far beyond spreading awareness. Three
aspects to help you shape your proper social marketing initiative build up
are: (a) policy, (b) strategy and (c) delivery and implementation.

1. What is affiliate marketing and list steps involved in developing this
initiative?
2. What is co-branding and describe different types of co-branding?
3. How does collaborative marketing works? Explain in brief five different
types of formats.
4. What is societal marketing? Explain advantages of societal marketing.
5. What is social marketing? Explain in detail.
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1. Affiliate marketing is a type of ___________ marketing in which a

brought by the affiliate's own marketing efforts.
(a) Performance-based
(b) Target-based
(c) Volume-based
(d) Website-based
2. Co-branding are of two types namely Product-based co-branding

and___________ co-branding.
(a) Co-ordination-based
(b) Classification-based
(c) Communications-based
(d) Categories-based
3. Under collaborative marketing, collaborators will use either joint budget

pulling or __________ approach.
(a) Swapping on social media
(b) Exchanging space on each other media
(c) Physical store placement
(d) Swapping on reach
4. Philip Kotler identified four categories of products based on long-term

benefits and immediate satisfaction under societal marketing namely (i)
________, (ii) Pleasing products, (iii) Salutary products, and (iv)
Desirable products.
(a) Derived products
(b) Deficient products
(c) Potential products
(d) Loss making products
5. Social marketing helps you to decide: (i) which people to work with, (ii)
________, (iii) How to go about it and (iv) How to measure it.
(a) What limitation to look at
(b) Why to influence through social marketing
(c) What to influence
(d) What behaviour to influence
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Answers: 1. (a), 2. (c), 3. (d), 4. (b), 5. (d).
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REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
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TECHNOLOGY ADOPTION FOR THE SUCCESSFUL MARKETING
Chapter 14
Technology Adoption For The Successful
Marketing
Objectives
• what marketing technology is
• technology layers in marketing technology
• how to build marketing technology stake
• consumer buying behaviour changes due to marketing technology
automation
• challenges in adoption of marketing technology
Structure:
14.1 Introduction
14.2 Marketing Technology Landscape
14.3 Technology Layers in Marketing Technology
14.4 Benefits of Marketing Automation Technology
14.5 Building Your Marketing Technology Stake
14.6 Functional Application of Marketing Technology
14.7 Changing Consumer Buying Behaviour Due to MarTech
14.8 Challenges in Adopting MarTech in Marketing
14.9 Summary
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14.1 INTRODUCTION
Different tasks of marketing involve collection of data, analysis, modeling

for solutions, data base collection for segmentation, building and
maintaining customer relationship, loyalty programs, media management,
content development and more. Traditionally, such things were done either
manually or using mechanical devises. Digitalization of the world has
changed various things and helped marketing to be alive, real time (which
it was supposed to be). Information technology has added not only the
bandwidth but also other features like connectivity, world-wide
communication and data exchange happening seamlessly. In this chapter,
we will get an overview of various technology adoptions for successful
marketing. We will however be selective.
What is Marketing Technology?
Marketing technology (MarTech) is the software/program/APP that helps

you execute your marketing activities. MarTech is the marketing industry’s
term for applications that help you succeed with modern marketing
activities.
These marketing activities aren’t just about sending emails to contacts in a

database. They also apply that data to determine who should receive an
email, what type of email to send, and the best time of day to send it.
MarTech, otherwise known as ‘Marketing Technology’, is the term for the

software and tech tools marketers leverage to plan, execute, and measure
marketing campaigns. MarTech tools are used to automate or otherwise
streamline marketing processes, collect and analyze data, and provide
various means of reaching and engaging with your target audience. The
suite of tools a company leverages for marketing processes is known as the
MarTech Stack.
MarTech technology can execute marketing at scale. Scale means reaching

your contacts and accounts in the hundreds and thousands without manual
processes. The value this brings includes:
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• Speed: Your marketing team saves time and money. With technology,
you can quickly reach many people.
• Results: You can see your success metrics for your marketing activities
to identify what works and what doesn’t. Depending on the technology
tools you use, you can see these results in real time.
We have briefly understood what MarTech is in marketing. In subsequent

sections, we will learn more about it.
14.2 MARKETING TECHNOLOGY LANDSCAPE
First let us understand the landscape of MarTech. I am re-producing one

table prepared using the MarTech landscape layout published by Scott
Brinker on his blog chiefmartec.com.
One look at the above table itself is an eye popping out experience (We
have not heard beyond Facebook, Twitter, Instagram, Snapchat,
SurveyMonkey, etc.).
Marketing is a function that relies increasingly on technology, and as more

technology tools emerged to meet the needs of modern marketing. These
marketing technology tools have collectively become a focus for the
technology adoptions for the successful marketing.
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Table 14.1: MarTech Landscape Overview (2019)
Advertising
Content & Social & Commerce
& Data Management
Experience Relationship & Sales
Promotions
Mobile Interactive Retail Marketing Talent
ABM
Marketing Content Marketing Data Management
Call Analytics Data
Display IoT Product
Mobile APP & Enhanceme
Advertising Marketing Management
Management nt
Channel,
Events,
Programmati Video Partner & Marketing Budgeting &
Meeting &
c Advertising Marketing Local Analytics Finance
Webinars
Marketing
Search & Mobile &
Emil Social Media Sales
Social Web Collaboration
Marketing Marketing Automation
Advertising Analytics
Affiliate Dashboards
Native/ Advocacy,
Content Marketing & & Data Projects &
Content Influencers &
Marketing Managemen Visualizatio Workflow
Advertising Loyalty
t n
E-
Video Personalizati Community & Customer Agile & Lean
Commerce
Advertising on & Testing Reviews Intelligence Management
Marketing
E-
Conversation Commerce Cloud Data Vendor
Print DAM & MRM
al Marketing Platforms & Integration Analysis
Carts
SEO
Chat DMP
Marketing
Customer Customer
Campaign
Experience, Data
Automation
Service Platforms
Lead
CRM
Management
CMS
Web
Experience
Collectively there are 7040 MarTech solutions around the world.
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Activity A
Consider the organization you are working for. Consider their current
MarCom initiative especially one which uses digital mediums. Take 6
MarTech verticals given above and run through various areas listed below
that vertical. Write the one you know are being considered.
_______________________________________________________
_______________________________________________________
_______________________________________________________
_______________________________________________________
14.3 TECHNOLOGY LAYERS IN MARKETING TECHNOLOGY
What is Technology Stack?
Stack typically consists of a few core tools. A MarTech Stack typically

consists of a few core marketing automation tools. Use of the specific tools
used can vary from company to company. A complete MarTech Stack
should address every stage of the marketing cycle: attracting, engaging,
converting, managing, and understanding your target customer. Some of
the most common tools and technologies in the MarTech Stack include;
1. Digital Asset Management: A DAM solution is widely considered the
heart of the MarTech Stack. It’s where your content is aggregated and
managed. As content is the driving force behind marketing, having a
single, centralized resource for managing a large volume of digital
assets is the key to marketing efficiency and effectiveness.
2. Analytics Tools: You can’t improve what you can’t measure, and that’s
why today’s enterprises rely on analytics solutions more than ever
before. The competitive landscape is tough in many industries, forcing
marketers to constantly step up their game to outpace the competition.
Analytics tools provide a quantifiable means of measuring the
effectiveness of marketing messaging, campaigns, channels, and more.
3. Lead Management: Lead management tools help marketers engage,
nurture, and qualify potential leads to determine sales-readiness.
4. Customer Relationship Management: These tools help companies
keep track of their customer base, providing a central resource for sales
and customer relationship team members who need to interact with
customers and prospects. Email marketing may be a built-in technology
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or procured as a separate service, but seamless integration is essential

between a CRM and email marketing solution.
5. Marketing Automation: Another technology often integrated with
email marketing and CRM; marketing automation tools can streamline
the process of nurturing leads by initiating specified actions based on
consumer behaviour.
6. Content Management System: These solutions allow marketers to
manage a company’s web presence, including primary websites, blogs,
landing pages, and more.
7. Social Media Management: Social media management tools simplify
the process of managing and engaging users across the many social
media platforms today’s consumers use.
These are just a few of the common technologies that exist in most
modern MarTech Stacks. With thousands of tools and technologies in the
MarTech landscape, it’s quite possible that no two companies’ MarTech
Stacks are alike.
Information Technology Architecture for MarTech
Further, to include all these technologies in your functions, you need to

have sound information technology architecture in place. Following aspects
are its key requirements;
a. Enterprise Data Foundation: This foundation consists of business

intelligence, analytics, and customer and product data.
b. Major Marketing Technology Platforms: These technologies include
other foundational components, such as digital asset management,
marketing automation, social media engagement, and web content
management, that fuel higher-level technologies and services (Refer
Table 14.1).
c. Prototypical Marketing and Sales Services: These technologies rely
on the layers below to streamline the execution of specific functions,
such as e-commerce management, content delivery networks, online
video platforms, and self-service portals. Note that these technologies
all require content in some form.
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d. Major Channels: This top layer includes the many channels through
which marketers carry out marketing strategies to engage their target
audience, such as email, mobile, social, television, print, websites, and
even kiosks. In the context of the buyer’s journey, these channels
are touch points.
To adopt various marketing technologies, you must first build your

information technology architecture and acquire appropriate technology
stack form the right organization, which offers you good mix of technology
software to meet your specific needs.
14.4 BENEFITS OF MARKETING AUTOMATION

TECHNOLOGY
MarTech or marketing technologies also helps marketers to:

1. Do more, faster: Save time and streamline workflows using automated
tools to do repetitive and time-consuming tasks like pulling data,
converting file formats, and finding assets.
2. Enhance internal communication: Provide a way to communicate
openly about things like project status and team goals to improve
tracking and give all team members full visibility to progress.
3. Create smarter content: Make your audience feel like you really get
them by using insights and data to understand performance, optimize
experiences, and deliver targeted content.
4. Build better relationships: Strengthen customer and buyer
relationships by always knowing the right thing to say with easy access
to past conversations, interactions, subscription information, and more.
5. Be stronger together: The value of each tool is amplified when then
all come together to reduce friction in workflows, allowing you to work
faster and smarter.
6. Manage multiple channels: It is easy to manage multiple channels
with ease. It is accepted that today’s marketers need to use multiple
channels vis-à-vis two decades back, when only print and broadcast
media were present.
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7. Making marketing cost-efficient function: With the use of MarTech

suits, today’s marketers are not only using multiple channels but also
get the analytics almost on a real-time basis. Due to this, marketers
today can also take mid-way decision to alter the investment in any
specific channel more by withdrawing funds from non-effective
channels. As against this, traditional marketers used to take long to get
feedback but by then, fund is already used in the channel releases.
14.5 BUILDING YOUR MARKETING TECHNOLOGY STAKE
Why You Need to Build Your Marketing Technology stake?
Both the marketing and tech worlds are changing rapidly with new tools
appearing almost daily. The key to building a sustainable MarTech stack is
a strong understanding of the current and future technology landscape and
where your needs fit into it. Understanding tech gaps within your
organization will also allow you to recognize opportunities for new tools as
the need arises.
No two companies are alike, so mapping your MarTech needs is key in

bringing clarity to the process. With six recognized categories in the
MarTech landscape, it’s important to review the tools and companies that
make up each one to understand how they could benefit you and your
team.
1. Mapping Your Marketing Technology Needs
Marketing teams face the opportunities (and temptations) of more

channels, more content, and more technology. And when they think about
how it all works together to deliver a consistent, effective customer
experience can lead to more headaches. This is the right time to think
about mapping your marketing technology needs.
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Why You Need to Map Your Marketing Technology?
a. To facilitate collaboration and efficiency: Marketing encompasses

many roles, channels, and tools. And there’s typically overlap. Mapping
your technology stack will help your teams understand what’s going on
around them and how everyone can work better together. Starting on a
white board to draw rough sketches of your process will clarify your
gaps and right needs.
b. To document for business continuity and scalability: The scale and

complexity of marketing technology can feel overwhelming. A map can
help you document the current state of your stack of systems and
where you’d like to take it. It will give your team’s context for how their
work and tools fit into the larger context. It’s also beneficial to make
sure this information doesn’t leave with the people who developed it.
Employee turnover is a reality all businesses deal with.
What to Include in Your Marketing Technology Map?
When you’re ready to create your map, use this list as a starting point for
what to include. You’ll have to decide what’s most beneficial for your
organization.
1. People: The tools are there to make your people more effective and
efficient.
a. System owner: This person owns the day-to-day of the tool. They
help execute the strategic vision for the tool.
b. Core users: The people who use the tool to accomplish their work.
2. Technology: Covers the tools that your business uses.
(a) Content Marketing Platforms
(b) Digital Asset Management
(c) Marketing Automation
(d) Marketing Resource Management
(e) Product Information Management
(f) Project Management
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(g) Social Media Management

(h) Web Content Management
3. Relationships: Label the relationships between your people and
technology.
a. API: These involve using an application programming interface to
develop a custom connection with functionality that supports a
specific workflow.
b. Out-of-the-box connectors: These are add-ons to an existing
solution and ready to install as is.
c. Managed integrations: These are customizable middleware
solutions that offer more flexibility than out-of-the-box connectors.
d. Process: Not all tools are connected technically. Some may be
connected via your team’s processes.
Using Marketing Technology Mapping Models
After you have covered above two phases, you need to now use one of the
available marketing technology mapping model. Certain marketing model
puts digital asset management (DAM) at the centre while few put customer
experience at the centre. We will study one each for getting the
perspective.
a. Content HUB model for marketing technology mapping: This

model puts your Digital Asset Management (DAM) system at the center
of content activity. Upstream of the DAM system is where designers,
marketers, and project managers are creating assets. Downstream of
the DAM system are the distribution channels and people who share the
final assets to make up the customer experience. Following figure
illustrates this very well.
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Fig. 14.1: Content HUB Model as Marketing Technology Mapping Tool
Using above model, you represent information collected and finalized in

first two levels earlier discussed.
b. The MarTech Stack by Red Wing Shoes: MarTech is about the

convergence of marketing, technology, and management. This model,
inspired by Red Wing Shoes, focuses on the technology and how it
supports a richer customer experience with efficient marketing
operations and reliable business analytics. Use this model to document
a high-level picture of the existing marketing technology and for
discussions on where new technology will impact your customer
experience, operations, and analytical ability.
Customer experience is the result of marketing communication (be it

advertisement of other mediums), which needs sales enablement and
marketing automation working for you vis-à-vis other supported
mediums like web, social media.
Effective development and delivery are the result of your listening to

consumers and gather consumer intelligence.
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Pic Source – Widen Blog

Fig. 14.2: Red Wing Shoes MarTech Mapping Model
How to Map Your Marketing Technology?
Now that you’ve seen some models, it’s time to map your marketing
technology.
a. Define the goal of your map: Write down the goal of your marketing
technology map. There are many variables that could be considered.
Documenting your goal will keep you focused and provide guidance on
who to involve and how large the map’s scope should be. Some
common goals include:
i. Increase productivity: Find that high-frequency, manual processes
and automates them.
ii. Improve the customer experience: Document your customer’s
experience and the people and technology delivering it.
iii. Reduce costs: Identify duplicate tools and work to eliminate them.
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iv. Increase revenue: Shorten time to market and optimize the buyer’s
journey.
b. Start with a list: Mapping out the different technology and people can
be overwhelming. Take that next step by listing the tools you use. As
you make your list, you can include other information, like the data
available for assets and the owner of the tool.
c. Create your map: Use your goal and list to guide your mapping
process. You can do this on a whiteboard, using sticky notes, or
digitally. Some questions to ask during the mapping process:
(i) What is the process?
(ii) Who executes the step?
(iii) What system is involved?
(iv) What decision is to be made?
d. Identify opportunities: Now that you have your marketing technology

map, you can identify opportunities for improvement. Give attention to
potential areas of waste, identify the technology gaps that are impeding
performance, and explore all measurable improvements. You may have
a long list of ideas, so prioritize them and consider the business impact,
customer impact, and the level of effort.
e. Take action: Now’s the time to act on your first opportunity.
If your map has inspired ideas for integrating your technologies, you’ll
want the right people to make it happen. The right mix usually includes a
decision maker, a system admin from each technology, IT support, a
project manager, and a few influential power users.
The process of creating the map can be just as valuable as the map
itself. Be sure to revisit it regularly (say, every six months) as people,
teams, and tools change.
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2. Review MarTech Landscape
After mapping your need and process, you need to first look at MarTech
Landscape matrix (Table 14.1) check the tools and companies that make
up each one to understand how they could benefit you and your team.
Invite select few; understand their software tool/stack, its utility and its
ability to meet your need as per mapping developed. Rest will be the
process of buying the best at the best rate and adopting it with your
system.
14.6 FUNCTIONAL APPLICATION OF MARKETING

TECHNOLOGY
For functional understanding of MarTech, we will consider digital marketing

as an example. However, please remember that in today’s life, even print
media has all the reference regarding customer experience on digital media
– QR Code, Facebook, Instagram and such media presence are indicated,
website is given and more.
Functionally, you handle digital marketing as follows:
Fig. 14.3: Handling Content Development till Analytics
Functionally MarTech application will look as follows. For our general

understanding, I have given a name of MarTech HUB to the technology
stack.
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Fig. 14.4: MarTech HUB Technology Stack Indicating Functional

Application
We will now understand how functionally MarTech helps the marketing

organization.
a. MarTech HUB Technology Stack: It’s a unifying technology platform

under which different solutions to your need will rest (Refer Table 14.1).
It covers essentially six areas – content and experience, advertising and
promotions, social and relationship, commerce and sales, data and
management. Through mapping, you may have selected various tools,
e.g., sales force for sales lead generation and CRM, and likewise few
others.
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b. Measures and Topics Planning: Planning of measures and topics in

the MarTech HUB is an integral part of the entire process of content
creation – from the collection of a first idea as well as editing and
scheduling to the distribution and re-use in the required forms of
publication. This allows full product cycles to be scheduled and
monitored in a binding manner. At any given time, users have a clear
insight into what stage of a campaign they are currently at and when
certain milestones need to be reached. Planning and optimization of the
impact of communication measures is carried out from here.
c. Content Creation and Content Management: MarTech HUB’s content

creation module serves as the central management tool for the creation,
handling and subsequent publication of all content. Whether it is media-
neutral data storage, built-in image enhancement and video editing or
smart content synchronization via one of the media sync tool you may
have procured.
Content creation module offers the technological foundations to

comfortably capture and manage all generated content of a business
centrally, but also the possibility to make them available to the
respective reader in any desired format, aiding in strengthening your
corporate identity and unifying brand management.
d. Digital Asset Management (DAM): MarTech HUB helps to manage

and organize assets of all kinds and their associated metadata, be it
texts, images, videos, audio files, documents and many more.
Depending on their assigned user roles and rights, MarTech HUB users
can access the built-in digital asset management to retrieve and edit
media assets or to gain a variety of useful information and metadata.
Proofs of use and instructions for use give users information on where
and how often an asset has already been utilized or whether it may be
further used in future publications. In addition to the available
automated mechanisms for distribution and publication, configurable
routines can also be implemented in the system to allow, for example,
the partially automated removal from circulation of an asset for which
usage rights are no longer available.
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e. Communication and Workflow Management: To monitor deadlines,

MarTech HUB can set up a reminder for users as a to-do or send an
email. These can also be issued for defined substitute staff members in
case users should run the risk of not meeting a deadline. Customizable
automated workflow enables the automatic distribution of content right
down to the minute. Part of this is, for example, the scheduled going
live of online content or the on-time handover of data to a printing
services provider.
Tasks, such as the supply of various forms of assets, can be outsourced

to employees or external partners, if desired also with automated
reminder e-mails. Third-party content is imported directly into the
system with the help of the Content Aggregator, via web forms, e-mails
or the standalone Content Aggregator APP. In consequence, internal
proofreading workflows can be initiated automatically, e.g., by
generating tasks automatically or by setting workflow stages. In
addition, e-mail notifications may be set up for accountable staff to
report the timely delivery (or non-delivery) of content.
f. Artificial Intelligence (AI)/Data Analytics: By using MarTech AI-

PRO, people, products, organizations and additional entities are
identified and linked automatically through a semantic network. Pieces
of content "know" about each other and provide users with helpful
contextual information about additional content in the database at any
time.
MarTech AIPRO offers added value by providing supplementary

information about the previous use of information items in the course of
earlier communication campaigns. They also help with the autonomous
interlinking of information for potential clients and existing customers.
The AI component is able to recognize relevant related content without
human input and gives recommendations based on context, thus
increasing interactions as well as time spent with content. Moreover, an
automated, AI-driven compilation of dossiers can be implemented, which
can bundle content pertaining to certain topics. Subsequently, these can
be distributed, for example, in the form of a document download, a
landing page or a newsletter.
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MarTech AIPRO offer valuable insights for all users. They recognize
interrelations and connections between different pieces of content which
fit together and make a valuable contribution to communication efforts.
MarTech AIPRO also provide information on how and through which

channels specific target audiences and customers were contacted. As a
result, a continuous evaluation of communication efforts across different
touch points is carried out.
MarTech AIPRO preserves information and answers customers' and

employees' questions. Pieces of content get linked and can be found
again. They are accessible for target-oriented distribution at the right
time in the right channel. They are made visible again in the "depths of
the database".
MarTech AIPRO provides an "always on" real-time background analysis

for any asset while it is being processed. Content gets analyzed for
extractable keywords, people, products, places or topics instantly. This
results in a steady optimization of content with regard to the anticipated
outcome through automated tagging.
From the above exposure, we can be convinced that today marketing

technology MarTech technology suites are making backend of enormous
frontend challenges smooth for marketers.
14.7 Changing Consumer Buying Behaviour Due to

MarTech
Marketing technology is adding value and it is changing the buying

behaviour of consumers as follows. We will study this from the perspective
of buying cycle steps as per consumer buying decision behaviour theory.
Fig. 14.5: Consumer’s Buying Decision Behaviour
In the following table, you will find how availability of various digital tools
are changing the consumers buying behaviour.
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Channels/Tools Used Buying behaviour

Buying Decision Stage
Today changes
Print Ads with digital
access indicators
Access to know about the
QR Code
product info is easy.
Problem Recognition Social media message Exposure makes you
ads realize your latent needs,
unfulfilled desires.
Banner/Panel ads
YouTube
Dynamic website filling
your screen with
searches made
Form submission on Searches are making
website information seeking easy,
voice assist if you are
Chat bot on website busy, need to go to
authorised dealership for
Link to microsites on
product info not felt,
sponsored ads
Information Seeking people decide brand,
Download contents model to buy through
online searches,
Comparisons on
consumer feedback,
aggregator sites
ranking, likes gives you
More channels - FB, indications. Video film
Insta, others based demo possible
Hashtag #
YouTube
Comparisons on
aggregator sites
Buyers have various
Ranking on online means to get the
marketing sites feedback and
Evaluation of Alternatives
comparisons to decide
Comments by users
between his shortlisted
Call centre discussion choices
Chat box discussion
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Industry data
Consumers have multiple
Model wise data ways to validate his
Buying Decision
Blogs decision without going to
the shop.
User experiences shared
Company social media Buyers have learnt to
page validate his post
Post-purchase Evaluation purchase experience,
Ranking option
raise voice, seek
Some of the above attention and more
Besides above, convenience, economy, deals, engaging content, availability

of prompt fund approval for financing your purchase are making consumer
decide about buying quickly, become more deal seekers, less brand loyal,
innovative call for actions prompts helps marketers provided they are
aware about it. Available MarTech support facilitates understand consumer
buying behaviour in real time, which has its own advantages.
Activity B
List consumer buying behaviour changes you have noticed at your home in
your family members, colleagues at the office, friends, relatives and
yourself, separated as per the buying decision stages.
_______________________________________________________
_______________________________________________________
_______________________________________________________
_______________________________________________________
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14.8 CHALLENGES IN ADOPTING MARTEC IN MARKETING
In this section, we will list core challenges being faced by marketers to

adopt marketing technology in their marketing function.
Challenges in Adopting MarTech in Marketing
a. Technology burst on the horizon: Across the MarTech horizon sheer

burst (availability) of over 7000+ tools makes it practically impossible
for an individual marketers along with IT expert (who may not fully
understand marketing).
b. Omni channel customer experience difficulty: Customer today have

access to most of the marketing communication through their
smartphones, TABs etc. At each touchpoint, she needs information and
looking for experience. You need to capture the data and fulfill her need.
Technology is an important catalyst. India is still not 5G ready, thereby
impacting introductions of numerous marketing tools. Also, consumers
represent themselves differently on different platforms, thus unifying
them as one is a challenge. She behaves differently when she is with
husband or with a colleague which is difficult to determine. Similar such
aspects affect content, offer and experience on an omnichannel
environment.
c. Organization bureaucracy: Marketing function has grown leaps and

bounds but even within fully customer driven marketing organization,
marketing is looked upon guys who are snobbish, flirt with model or
people who know how to blow the money!!! Few senior managers have
a clear vision of how data can support the business beyond one-off
initiatives. This also includes many top leaders as well. Thus, it is hard
to put forward a thought to introduce MarTech within the organization.
Top management is reluctant to invest in ‘TechHUB’ (i.e., data collection
and management technology) for marketing. COO will outspend the CTO
on tech, but ‘center of gravity’ is only tilted towards IT technology.
d. Shadow MarTech: Other than marketing team, few will understand

your efforts to map your activity, customer journey. Within the
marketing also, few only will really understand mapping activity, invest
time to define need. IT also may not be able to contribute much. In
such a circumstances, you may land up acquiring shadow MarTech which
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may not really help.
e. Data quality: For full capitalization of spent on MarTech, data quality is

very important. However, at most touchpoints, data is manually
entered, thereby affecting quality of execution.
f. Achieving full utilization: Able to invest in MarTech is one aspect and

fully utilizing it is another aspect. In fact, second one is more
challenging. It depends on your team, their understanding about basic
of marketing, technology grasping power and then understanding the
functionality of each tool. As a result, you will notice resistance to
change even within your team. Its thus challenging to install and foster
acquisition of skills to utilize its potential fully.
Challenges seldom deter those who are believers of path breaking forward
journey and thus they pursue inclusion of MarTech. After all, MarTech suit
has the provision for you to consider tools you need, and it has scalability
feasible.
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14.9 SUMMARY
MarTech, otherwise known as ‘Marketing Technology’, is the term for the

software and tech tools marketers leverage to plan, execute, and measure
marketing campaigns. MarTech tools are used to automate or otherwise
streamline marketing processes, collect and analyze data, and provide
various means of reaching and engaging with your target audience.
MarTech brings value like speed and result while saving money or
optimizing output for the money spent.
MarTech landscape has 6 broad activities vertical namely Advertising and

Promotion, Content and Experience, Social and Relationship, Commerce
and Sale, Data and Management. Under each, various marketing activities
are mentioned for which various automation tools are available.
Technology Stack typically consists of a few core tools. A MarTech Stack

typically consists of a few core marketing automation tools. Some of the
most common tools and technologies in the MarTech Stack include Digital
Asset Management, Analytics Tools, Lead Management, Customer
Relationship Management, Marketing Automation, Content Management
System and Social Media Management.
MarTech or marketing technologies also helps marketers to do more faster,

enhance internal communication, create smarter content, build better
relationships, be stronger together, manage multiple channels, making
marketing cost-efficient function.
For building your marketing automation stake, you need to: (a) Map
marketing technology needs and (b) Review MarTech landscape to find
appropriate tools for your automation need. We have covered process
steps to map your marketing technology needs including two models
namely (a) Content HUB model for marketing technology mapping and (b)
The MarTech Stack by Red Wing Shoes.
We have understood functional application of marketing technology

automation. Finally, we understood changes in consumers buying
behaviour under five stages of buying decision stages.
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1. What is marketing automation technology and explain MarTech
landscape in brief?
2. What is MarTech automation stake?
3. What are the benefits of Marketing automation technology stake?
4. How will you build your marketing automation technology stake?
5. Explain the functional application of marketing automation technology.
6. What are the challenges in adopting marketing automation technology?
1. Any Technology Stack typically consists of a few core _____.

(a) IT automation tools
(b) Marketing management tools
(c) Marketing automation tools
(d) Sales automation tools
2. In any marketing automation technology stake, there is DAM, known as

__________ and same is widely considered as the heart of the MarTech
Stack.
(a) Dynamic Assessment Monitor
(b) Digital Asset Management
(c) Digital Assessment Management
3. IT architecture for the marketing automation technology includes

Enterprise Data Foundation, _______, Prototypical Marketing and Sales
Services, and Major Channels.
(a) Essential Management Modeling Platform
(b) Major Marketing Channel Management Tools
(c) Marketing Decision Support System
(d) Major Marketing Technology Platforms
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4. You need to include people, technology and __________ in your

marketing automation technology map.
(a) Relationship
(b) Reports
(c) Responsibility matrix
(d) IT architecture
5. MarTech HUB technology stack’s functional application can help in areas

such as content creation, communication and workflow management,
measures and topics planning and __________.
(a) Manual data analytics
(b) AI data analytics
(c) Network data analytics
(d) Channel data analytics
Answers: 1. (c), 2. (b), 3. (d), 4. (a), 5. (b).
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REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
Video Lecture
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MARKETING PLANNING, PERFORMANCE AND CONTROL
Chapter 15
Marketing Planning, Performance And
Control
Objectives
• what marketing planning is
• the planning process
• strategic planning vis-à-vis marketing planning
• marketing plan and different sections therein
• performance measurement and control
• different derivative plans from the marketing plan.
Structure:
15.1 Introduction
15.2 Marketing Planning
15.3 The Planning Process
15.4 Strategic Planning vs. Marketing Planning
15.5 Understanding Salient Aspects of Marketing Plan
15.6 Structure of Marketing Plan
15.7 Marketing Performance Evaluation and Control
15.8 Derivatives from the Marketing Plan
15.9 Summary
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15.1 INTRODUCTION
Preamble to Development of Marketing Plan
Popular quote that drove me to make or insist on making a

marketing plan is “By failing to prepare, you are preparing to
fail.’’– Benjamin Franklin.
As the quote conveys, not making a marketing plan will not help you know
where you wish to go, where you are and provides you pathways to reach
where you wish to reach.
We have seen all throughout this subject understanding that ‘customer

value’ is your success mantra. This is possible by being customer focused.
In a truly customer focused organization, marketing function plays central
role and not only guides but influences other functions to create value for
their customers. Ultimate goal of any business is to generate desired ROI
for its stakeholders. Macro environment will continue to be volatile and
competition stiff. In such circumstances, it’s the marketing department
towards which all functions look at. Thus, preparation of the marketing
plan is basic functional role of the marketing department. Other look at it,
marketing plan provides idea regarding where you are, where you wish to
go, what stretched target you can take to capitalize on the opportunities
and provides a thought through pathways in terms of strategies and
tactics.
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15.2 MARKETING PLANNING
Marketing Planning – Key to Successful Marketing
In our marketing management reading, we have understood that

marketing management is all about planning new product, re-introducing
existing products, 4P’s, strategies and implementing the same to get
desired impact and achieve planned marketing objectives.
The process of marketing management needs attention to three areas as

follows;
Planning: Same is required because marketing management needs

understanding of consumer needs, changing buying behaviour,
environmental changes to be handled and competitive position is
maintained. Planning laid downs, the pathways describing how will the
organization go forward to achieve planned marketing objectives.
Implementation: It describes the way action plans will be actually

implemented, timeline, tasks and budget.
Control: Reviewing performance vis-à-vis planned objectives to assess

marketing performance.
Different Types of Planning
Marketing planning needs to be seen in the context of the different types of

planning – Corporate level, Marketing level, Operations level.
Planning at the corporate level will look at the direction, resource issues,
and objectives for the company as a whole. Marketing planning then
looks at the issues and objectives for the marketing area, with the
consumer at the heart of its thinking. Operational planning is about the
direction of the company’s operations and how these fit in with the
objectives set.
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It is important to distinguish between strategic and tactical planning.

Strategic planning is concerned with the long term and has a broad focus,
covering competitive positioning and the development of new products.
Tactical planning has its focus on the short term, and day-to-day marketing
activity such as price discounting and customer communication.
Understanding Marketing Planning
Market Planning is the process of organizing and defining the marketing

aim of a company and gathering strategies and tactics to achieve them. All
these needs to be represented in a comprehensive document known as
MARKETING PLAN. A solid marketing plan should consist of the company’s
value proposition, information regarding its target market or customers, a
comparative positioning of its competitors in the market, promotion
strategies, distribution channels, and budget allocated for the plan.
Coverage of Marketing Planning
Marketing planning process tasks includes following coverage areas;
a. Market Segmentation and Target Markets: Market segmentation

involves assessing the whole population that could be potential
customers of your product and then segmenting them based on varying
criteria – geographic, demographic, psychographic, lifestyle, etc.
After the market’s been segmented, the company must choose the group
that it believes its product can best serve and is within the budget to
advertise to. This segment then forms your target market. It is generally
recommended for businesses to have one target market and have
secondary ones if they see fit.
Segmentation and target segment/s also need the consideration

regarding whether you will have one marketing mix vis-à-vis multiple
marketing mix for each target. This depends on your strategic approach.
To illustrate, a company that sells colored contacts may have a primary

target market of makeup artists in the film and theater industry.
However, they may find that there is significant revenue to be found in
entering more mainstream channels and marketing towards women in
their twenties who wish to experiment with new eye colors on special
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occasions. They would then spend the majority of their resources

marketing to their primary target market, but also allocate some
marketing budget to the latter segment for additional revenue.
The main reason why market segmentation and targeting are important
is that a company should always be focusing their resources on the most
profitable group of customers and knowing which group that is a
prerequisite.
b. Budget: Budgeting may be the most important term in marketing

planning when it comes to execution. Often, in order to secure funds
from top management, sufficient detailing of your marketing plan and
advertising plan is needed. Budget may also determine marketing
objectives, which many time gets tweaked due to limited resources. It
requires accurate forecasting of return generated for individual
promotion, advertising expenditures. Budget also helps you to monitor
the performance vis-à-vis objectives.
c. Marketing Mix: The marketing mix is a combination of elements that

influence customers to purchase a product. The marketing mix includes
four main factors: Product, Price, Place, and Promotion. We have
covered all these aspects earlier.
d. Customer Relationship Management (CRM): Customer relationship

management is a key factor in maintaining loyalty after a company has
achieved a sustainable number of customers. There are numerous
software and solutions on the market to handle CRM for a company.
Things such as offering warranties and return policies can help keep
customers satisfied and let them know that the company cares about
their use of your product post-purchase.
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The benefits of planning include:

• To help determine sources of competitive advantage
• To bring the discipline of an organized approach
• To ensure consistent relationships between variables
• To inform (environment, internal aspects, industry and more)
• To get resources
• To get support – internal, channel and other stakeholders
• To gain commitment
• To set objectives and strategies
• To spell out the desired mix of products and services
Planning involves consideration of complex issues covering the whole

organization, and the marketer may come across barriers to planning, for
example:
• The culture of the organization – is it focused internally rather than
externally?
• Power and politics
• Analysis – not action
• Resource issues – money and time
• Skills and technology – may not match customer need
• Ability to challenge existing ideas.
From the above learning, one can determine that marketing planning must
be an integral part of any successful marketing department.
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15.3 THE PLANNING PROCESS
The marketing planning process involves a series of steps in which

following aspects are probed;
1. Where are we now?
2. Where do we want to be?
3. How can we get there?
4. Which way is best?
5. How can we ensure arrival?
Fig. 15.1: The Planning Process
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1. Where are we now?
This involves a full analysis of the company’s present situation, with an

external and internal audit. There are six specific dimensions to audit
yourself;
(a) External environment – macro and micro
(b) Internal environment – covering:

• Marketing strategy
• Marketing organization
• Marketing systems
• Marketing productivity
• Marketing functions
Information from the above analysis and inference is then analyzed into a
SWOT framework in which specific emphasis is placed on determining
strategic focus, competitive advantage, and corporate capability. From this
analysis the process of matching organizational strengths to the
marketplace and overcoming weaknesses takes place.
2. Where do we want to be?
Under this stage, direction towards which organization desires/plans to go

is determined. For which the mission needs to be set, objectives should be
decided upon, and strategies related to the product portfolio and
competition decided. The company also decides who their customers are:
the STP process – segmentation, targeting and positioning.
a. Portfolio analysis: The organization needs to examine its portfolio of

products or companies and decide what strategy to adopt – for
example, whether to grow or divest a particular product.
b. Segmentation: Having settled on a particular market to enter or

exploit, the marketer must carefully divide the market by identifiable
segments in order to target the most profitable areas. Positioning is
then decided upon in order to place the product clearly in the minds of
consumers against that of the competition so that it is clearly
differentiated. For example, having segmented the car market and
decided to target the family market with its certified safe product, TATA
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Nexon positioned its cars as the vehicle for the safety conscious.
c. Competitive strategy: A competitive strategy is then adopted with the

firm taking up a particular competitive position, one that will give it an
advantage over competitors. For example, will the company adopt a
niche position, not challenging the major players, or will it decide to go
for aggressive growth by taking market share from competitors? Also,
lot depends whether you need to penetrate the market to gain share or
defend the market or open the market to find more volume for your
product.
3. How can we get there?

The marketing mix is the toolbox from which marketers can choose
elements to influence the target market. The four P’s – product, price,
place and promotion – make up the marketing mix. Also, can be added
physical evidence, people and process to make up the full mix, especially in
relation to services.
4. Which way is the best?

Decisions need to be taken about what is important, options available to
achieve the objectives and which is the best way to reach the goal. This is
a derivative of SWOT from which you are able to determine strengths you
can leverage, weaknesses you need to defend (provided you can),
opportunities you have and threats you need to defend yourself against.
Also, your understanding about the competition and competitive forces can
help you to decide which way is the best.
5. How can we ensure arrival?

Following through on the strategy and decisions about the marketing mix,
it is important to make sure that the plan is implemented. What practical
steps are going to be followed to implement the plan? Internal marketing
might be necessary in order to ensure that everyone in the organization is
pulling in the same direction.
The plan and its objectives must also be monitored and evaluated. The
success of the plan can be measured and further steps taken, if problems
arise, to correct the situation.
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15.4 STRATEGIC PLANNING VS. MARKETING PLANNING
At a basic level, the difference between marketing strategy and marketing

plan comes down to purpose and application.
Marketing strategy is driven by your business strategy – where you want

to go, what market you'll serve, how you'll go to market with your
products, etc. A marketing plan is goal-driven activities and tactics to
help you achieve that vision.
Following points will help you to understand the difference in a better

manner. It is represented in a tabular manner for better understanding.
However, it is not in a typical manner in which we are used to see the table
which shows the difference.
Marketing Strategy Marketing Planning

Core Focus:
• Covers the “why” behind your • How you are going to achieve your
company. marketing goals.
• The “what” that defines what you • The large campaigns, the individual
deliver, how you deliver it and the events, or the marketing tactics live
message/position you will use to here.
define your product or service with
your intended audience.
• The marketing strategy is the “way” • The marketing plan is the matrix of
you will achieve the goals set forth ideas, systems, and events.
by the company.
• It’s a precursor to the marketing • Marketing planning follows the
planning. Marketing planning done approach to develop a way in which
without marketing strategy in place decided strategies will get
is like shooting in dark. implemented.
Core Deliverables:
• Marketing strategy is the • Marketing planning is the doing – the
brainstorming – the approach - The executing, the vision brought to life.
thinking. The ideas. The angles. The
way.
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Examples: Kwality Breads Manufacturing Pvt Ltd.

Business Goals: Secure at least ` 25,00,000 in new business in the city of
Chennai
Marketing Strategy: Build relationships with top 20 influencers in restaurant
and hotel business circles
Marketing Planning: Join a networking group, send targeted emails to
influencers once a quarter inviting them for a business meet in which you can
introduce your product range, announce incentives, target based discounting
etc. Later, follow us by pursuing personal selling approach.
Consistency:
• Strategies generally remain • Planning has to achieve, what is
consistent over time. strategized, it may need constant
review and change to achieve goals.
In brief, corporate/business vision and mission defines your business
strategies. Marketing strategy follows from there and marketing plan
answers how are you going to achieve your marketing strategies to reach
your set marketing goals.
With above understanding, let us take a ZOOM-OUT VIEW to

understand broad planning process overview in any organization.
Strategic Planning
What is strategy? A strategy is a way to pursue a vision by leveraging

tools and tactics that will produce the desired outcome. A valid strategic
plan is one that contains the basic elements of motion; a destination
(where), a road map (how), and the means of getting there (what). It is a
decision with direction.
Strategic Planning is the managerial process of creating and maintaining

a fit between the organization’s objectives and resources and the evolving
market opportunities.
Strategic planning is done at four organizational levels namely (a)

Corporate, (b) Division, (c) Business and (d) Product.
Corporate strategy of SKF Bearings when decided will be a driver for

divisional level (Bearings, Accessories and Lubricants) strategy. From
divisional level strategy, business level (automotive and electrical)
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strategies will evolve. Marketing plan for product level (Bearings, hub units,
components, motors and rotational parts) will get developed.
Fig. 15.2: Four Organization Levels Covered
As conveyed earlier, marketing strategies will be derived from the business

level strategic plan.
Business level (automotive and electrical) planning gets developed as: (1)
Product-oriented strategic planning and (2) marketing-oriented planning.
Essentially marketing-oriented strategic planning is done before which is
supported by product level strategic planning.
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Strategic Planning – Planning, Implementation and Control

Perspective
Following flow chart diagram will give you bird’s eye view of planning for
strategic planning, its implementation and controlling perspective.
Fig. 15.3: Planning-Implementation-Controlling

Flow Chart of Strategic Planning
Planning involves the development of corporate strategic plan. From the

corporate strategic plan division level strategic business plan followed by
business level and finally product level strategic plan gets developed. In
terms of implementation, at each level organizing and implementation is
needed in the direction which you have charted for reaching your goals and
enables you to pursue your goal fulfillment journey. Controlling mechanism
will measure your performance against the target, diagnose the result
(what when right and what went wrong and why). Based on the diagnosis,
action plan will be prepared to leverage more or give thrust where it is
needed most by taking corrective actions. It is significant to note that
resulting observations and feedback will be fed into strategic planning
levels and its implementation in the future.
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Students must know and understand that in truly marketing centric

organization (Refer Chapter 1, Fig. 1.5 – Evolving customer centric
marketing function) marketing plays and integrative role and thus product
planning becomes the sub-set of marketing planning. Marketing strategic
planning will first take place and same will be absorbed in making of a
marketing plan.
Business Strategic Planning Process
We first take the look at the business strategic planning process at it has
link with marketing planning and marketing plan development. Following
diagram will explain the same quickly.
Fig. 15.4: Business Strategic Planning Process (Too Big)
Defining the Vision
What have everyone at the specific organization has set to collectively

achieve or in simple terms why your company exists is reflected in vision
and mission statements.
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A vision statement is a realistic, long term future scenario for the

organization. A vision statement is designed to present a realistic long-
term future scenario for the organization. It is a "clearly articulated
statement of the business scope." A strong vision statement typically
includes the following:
• Competitive scope
• Market scope
• Geographic scope
• Vertical scope
Defining the Mission
Mission is defined as an important milestone given to a group of people, to

collectively drive themselves to reach the milestone. A mission
statement is a clear and concise statement of the organization’s reason
for being and its scope of operations.
Mission is represented as mission statement.
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Business Mission Statement – Scope
• Industry Scope
❖ Range of industries where the organization wishes to focus
❖ Example: Consumer, Industrial, S/w, ITES, etc.
• Product and Application Scope

❖ Products and services which the company wants to supply
❖ Example: Apollo Hospitals – Quality Healthcare
• Competence Scope
❖ Based on competencies developed in certain areas
❖ Example: System Integrators – define capability to manage and
integrate diverse systems as a mission
• Market Segment Scope

❖ Companies specify segment in which they will operate
❖ Example: OshKoshB’gosh specializes in Kids clothes, Mercedes – only
high-end cars
• Vertical Scope
❖ How vertically integrated a company is in operations or serving
customer requirements?
❖ Example: Ford – at one time had rubber plantations, rubber
processing, foundries, etc. to now automobiles
• Geographical Scope
❖ Geographical markets the company operates in
❖ Example: MNCs will define their market as global
Mission statements should typically include the following:

• Specification of target customers
• Identification of principal products or services offered
• Specification of the geographic scope of operations
• Identification of core technologies and/or core capabilities
• An outline of the firm's commitment to long-term survival, growth and
profitability
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• An outline of the key elements in the company's philosophy and core

values
• Identification of the company's desired public image
IKEA has recently entered India and spreading its wings wide. Mission
statement of IKEA is:
“At IKEA, our vision is to create a better everyday life for many people. Our
business idea supports this vision by offering a wide range of well-
designed, functional home furnishing products at prices so low that as
many people as possible will be able to afford them”.
Hindustan Unilever is an Indian counterpart of Unilever Group worldwide.

Mission statement of HUL is:
“Our mission is to add Vitality to life. We meet every day needs for
nutrition, hygiene and personal care with brands that help people feel
good, look good and get more out of life”.
The mission statement is a core message that guides and influences your
marketing strategy. Questions to ask when evaluating the mission:
• Why is your company in business?
• What is the purpose of your business?
• What is the strategic influence for your business?
• What is the desired public perception for your business?
• How does your mission statement clarify your strategy?
• How does your mission statement unify your team?
Strategic analysis is designed to address the first strategic question,

"Where are we now?" Strategic analysts are seeking insights about the
firm's operating environment with a view to identifying possible future
scenarios, opportunities and threats.
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Various Methods/Models to Determine Your Existing Status
1. 5Cs Methodology: Strategic planning focuses on the 5C's, namely,

Company, Customers, Competitors, Collaborator and Climate. While
company is an internal factor, others are external factors. A detailed
analysis of each factor is key to the success of strategy formulation.
❖ Company: Goals and objectives, strengths and weaknesses, culture

and resources including technology, experience and skills.
❖ Customers: Market size, segments, target groups, purchase habits,

trends and customer satisfaction and perceived brand perception and
brand value.
❖ Competitors: Current and prospective, strengths and weaknesses,

opportunities and threats, product, substitutes and market share.
❖ Collaborators: Suppliers, distributors, alliances and partners.
❖ Climate: Regulations, government focus, consumer awareness and

participation, legal aspects and technology availability.
2. PESTEL Analysis: This is a macro environment analysis covering

political, economic, social, technology, environment and legal aspects.
We have covered this under Chapter 4, section 4.2. Students may
glance through it. However, from here, information flows into the
development of SWOT (Strengths-Weaknesses-Opportunities-Threats).
You develop SWOT analysis not only for you, but also for your big
competitors.
3. SWOT (Strengths-Weaknesses-Opportunities-Threats) Analysis:

In this analysis, internal and external aspects are considered from the
perspective of what is helpful or what is harmful to the organization.
Thus, you get 2 × 2 matrix. Strengths and weaknesses are internal to
the organization. Opportunities and threats are external to the
organization.
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❖ Strengths: More to do with your technology, process, innovation,

quality, brand perception/equity, people, etc. Strengths are what you
leverage it to maintain your competitiveness.
❖ Weaknesses: More to do with areas you are unable to build/improve,

or competition is better than you. Weaknesses are what you overcome
by evolving.
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❖ Opportunities: Available favourable conditions, change, which allows
you to exploit it to your advantage due to strengths you already
possess.
❖ Threats: Unfavorable conditions, change, which may endanger your

competitive advantage thus you need to defend your exposure to it.
4. Gap Analysis: Gap analysis is a type of higher order analysis that

seeks to identify the difference between the organization’s current
strategy and its desired strategy. This difference is sometimes known as
the strategic gap. There are two types of strategy namely:
❖ Deliberate strategy: The deliberate strategy represents the firm's

strategic intent or its desired path.
❖ Inadvertent strategy: The inadvertent strategy represents the path

that the firm may have followed as it adjusted to environmental,
competitive and market changes. This type of analysis indicates
whether an organization has strayed from its desired path during the
planning period. The presence of a large gap may indicate the
organization has become stuck in the middle; a recipe for strategic
mediocrity and potential failure.
5. Brand and Category Index: The category/brand development index is

a method used to assess the sales potential for a region or market and
identify market segments that can be developed (i.e., high CDI and high
BDI). In addition, it may be used to identify markets where the category
or brand is under-performing and may signal underlying marketing
problems such as poor distribution (i.e., high CDI and low BDI).
BDI and CDI are calculated as follows:
❖ BDI = (Brand Sales (%) in Market A/Population (%) in Market A) ×

100
❖ CDI = (Category Sales (%) in Market/Population (%) in Market A) ×

100
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Above methods helps you to determine where are you and what surrounds
you, where is an opportunity available and what you need to be cautious
about.
Goal Formation
The goal is defined as the object of a person's ambition or effort; an aim or

desired result. The goal setting is the process of identifying something
that you want to accomplish and establishing measurable goals and
timeframes.
Goal formation is crucial as it sets the tone and pace for the organization’s
activities. One of the most popular way in which goals are formed is to
follow S-M-A-R-T approach, identified as follows:
• S – Simple
• M – Measurable
• A – Achievable
• R – Realistic
• T – Time-bound
Fig. 15.5: Strategy Formulation
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Strategy Formulation
We have earlier seen what strategy is. It may be challenging to develop a

strategy, however, process to develop a strategy is self-explanatory as
seen in the Figure 15.5.
We will discuss what is not coming out here and relevant to marketing only.
Marketing manager needs to decide following strategic aspects:

1. Strategic direction to meet the marketing objectives
2. Competitive advantage
1. Strategic direction to meet marketing objectives: In Chapter 11,

section 11.4 (D) – How do we get there? We have studied different
models and matrix, which enables you to develop your strategies. Here
for your understanding, one of the method is repeated. It does not
mean, other methods/models not being used. They are equally
important.
Marketing manager needs to develop strategic direction which will help

her to achieve objectives. Essentially, she has to either: (a) introduce
new product, (b) penetrate market, (c) develop the market and (d)
diversify. But where can she take such strategic direction remains to be
answered. Ansoff’s Matrix or strategic opportunity matrix helps in this, as
explained below.
Present Product New Product

Present Market Penetration Product Development
Market Scorpio SUV still sells despite Tata Salt, Tata Low Sodium
Marazzo new SUV launch. This Salt, Tata Flavored Salt, Car
is due to deep penetration variants
New Market Market Development Diversification
Amazon online platform, post Tata Chemicals besides salt
brand specific focus, now and other chemicals,
invites locals for product selling diversified into water purifiers
Fig. 15.6: Ansoff’s Matrix or Strategic Opportunity Matrix
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2. Competitive advantage: A competitive advantage in business is

defined as the attribute that allows an organization to outperform its
competitors. Competitive advantage makes the brand, product, or
service to be perceived as superior to the other competitors. Having a
competitive advantage is a favourable position a business holds in the
market which results in more customers and profits.
A brand can create a competitive advantage if it is clear about three

determinants namely (a) Target market, (b) Competition and (c) Unique
selling proposition (USP) you have in your product. The unique selling
proposition is usually the chief trigger of the competitive advantage and
separates the business from the competition. It is the reason why the
customers choose the concerned brand over others. The USP should be
clear to both the business and the customers in order for a brand to
create a competitive advantage.
Michael Porter, one of the legend on competitive marketing, wrote a book

in 1985 named “Competitive Advantage: Creating and Sustaining
Superior Performance”, which identified three strategies which
businesses can use to tackle competition and create a sustainable
competitive advantage. Same are represented as follows;
a. Cost Leadership: It is a strategy where a business produces the same

quality of the product as of the competitors’ but sells it at a lower price.
Cost leadership is achieved by:
(i) Continuously improving the operational efficiency
(ii) Getting the advantage of economies of scale (Walmart, etc.)
(iii) Alternative materials use
(iv) Reengineering
(v) Vendor negotiation/partnership
b. Differentiation: As studied earlier, a differential advantage is when the

product or service offered by the business deliver different benefits than
the products offered by the competitors. The unique position can refer
to the high quality, better delivery, more features, or any other specific
attribute of the product or service. Differentiation is usually achieved by
innovation and big innovation usually results in disruption of the
industry and creating a sustainable competitive advantage for the
business. An example of the creation of differential advantage through
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disruption is twin blade disposable razor when blade market was fiercely
battling out for survival.
c. Focus: Also called the segmentation strategy, the focus strategy

involves targeting a pre-defined segment rather than everyone. We
have studied this aspect earlier.
d. Other factors: In today’s intensive marketing, few other factors also

creates a competitive advantage such as:(a) Brand loyalty – Gillette
razors continuously evolves to give you better; (b) Big pocket – Today’s
competitive soft drink makers have big pockets and thus they are able
to create their share of voice so high, that others just perish by not
being heard; (c) Network effect, i.e., when specific product is being
used by large population, it creates a compelling reason for not
switching. For example, WhatsApp users are so many, you may seldom
think for a perhaps better product namely Telegram.
Marketing Process
Fig. 15.7: Complete Marketing Process
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Now, we can enter into understanding of MARKETING PLAN. However, time

has come to put MARKETING PROCESS perspective to help you unify
different components we understood in this chapter vis-à-vis earlier
chapter. Following one more diagram will give you complete perspective of
marketing process and it will make learning of marketing plan much more
interesting.
Overall marketing process goes something like following:
• Analyzing marketing opportunity
• Researching and selecting targeting markets
• Designing marketing strategies
• Planning marketing programs
• Organizing/Implementing
• Feedback and control
After understanding strategic planning and marketing planning

comprehensively, let’s now understand MARKETING PLAN.
15.5 UNDERSTANDING SALIENT ASPECTS OF MARKETING

PLAN
Criticality of Marketing Plan
There are certain critical “soft” areas that explains the criticality of making
a marketing plan through a structured, effective and focused marketing
planning. These critical aspects help in setting the groundwork and
direction.
• Learning from your performance: Marketers must continuously lean

through performance evaluation and results. Critically evaluate the goals
set, commitments made vis-à-vis your achievements. Evaluate where
they were not met, why and what mitigations you take next year. This
also involves having that discussion with your critical stakeholders, e.g.,
business heads, market leaders among others.
Don’t just shy away! Be proactive and discuss your learnings and how
you will incorporate them in re-writing your future plan.
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• Numbers do speak! Number speaks for itself
What is your organization numbers saying? What moved in terms of

clients, revenue, pipeline, share of voice among others? What was the
impact of your marketing strategy and tactics? This calls for you to move
beyond marketing and get input from finance, sales, and others.
Use this to validate your value add, identify the gaps, opportunities for
the organization and identifying where value is required.
• Understand the organization’s direction for the next year? Ensure

to focus in the same direction the organization is headed! Be in sync with
your leadership on the overall direction and priorities for the next year.
This will then give you marketing focus and eventually provide you with
the budget scope that you so much need!
• How innovative and agile are you to the evolving environment?

Be current and agile!
Marketing is a rapidly changing world and there are always new ways of
doing something better. How in tune are you and what works best for
your organization?
As the gate keeper of your organization – what factors will affect the
organization’s performance, brand, and reputation among other
marketing factors and how will you respond to them?
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What is a ‘Marketing Plan’?
A marketing plan is a comprehensive document or blueprint that outlines

the advertising and marketing efforts for the coming year. It describes
business activities involved in accomplishing specific marketing objectives
within a set time frame.
From a renowned marketing legend Philip Kotler, “Marketing planning is

a systematic process involving the assessment of marketing opportunities
and resources, the determination of marketing objectives and the
development of a plan for implementation and control.”
Let’s dissect the marketing plan definition as follows:
• It’s a systematic process: Something that needs an organized

approach, needs all functions to come together, evaluate, identify,
recognize the opportunity and plan to defend against threats, set
marketing objective, and develop strategy and what needs to be done to
achieve set goals.
• Assessment of marketing opportunities and resources: It calls for

complete environment scanning, decide what’s in favour of you and
what’s against you, resources you have and you need additionally,
budget needed and more, which will help you to decide what can you
spend on marketing advertising, promotions and more.
• Determination of marketing objectives: Post your environment

scanning and SWOT analysis, you will be able to decide what should be
your marketing objectives, which will set the direction, flow your energy
and resources to yield you requisite result.
• Development of plan: From where you are to where you wish to go,
you will need to plan your journey, actions to achieve goals, how will you
handle the competition, etc. needs to bring plan perspective, note
everything for reference and action planning.
• Implement actions and control: With things planned, you will be able
to implement it and post implement you can measure performance vis-à-
vis actuals.
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Elements of Marketing Plan
Typically, a marketing plan will include these elements:

• An overview of your business’s marketing and advertising goals
• A description of your business’s current marketing position
• A description of your business’s target market and customer needs
• A timeline of when tasks within your strategy will be completed
• Budget and resource requirements
• Key performance indicators you will be tracking
Criticality of marketing plan is undisputed as it helps you to look back,

evaluate numbers for performance and getting a future direction and
assessing your agility and innovativeness to respond to the marketing
environment. Marketing plan development is being a systematic process
enables the assessment of marketing opportunities and resources,
determination of marketing objectives, development of action plan and
ensure its implement actions and control.
15.6 STRUCTURE OF MARKETING PLAN
The word structure indicates systematic laying down of information so as to

create an understanding and derive conclusive understanding. The
structure of a marketing plan indicates systematic laying of marketing
information in a manner that it creates the understanding about five steps
covered earlier in planning process section and provide us with the
understanding about the environment, market, competition, marketing
objectives, marketing strategies decided, marketing action plan including
marketing communication and promotion plan, resources needed, budget
proposed and more tertiary aspects.
Students must keep in mind that represented structure is indicative in

nature based on actual experience of an author. However, same can be
tweaked to consider the need of your market and the organization.
In order to facilitate the better understanding, first structural component

will be briefly explained followed by ‘Pre-work’ needed to elaborate specific
structural component.
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Structural Components of Marketing Plan
1. Executive Summary: This section summarizes the core message/

outcome of the entire marketing plan in a very brief manner. An
executive summary introduces readers to your company goals,
marketing facts, strategies, future plans, and other important contextual
facts. Anything more than 2 pages is not an executive summary.
Essentially it is developed for the top management to get quick bird’s
eye view of the marketing plan so that requisite clearances can be
provided, resources and budget approved.
Basically, you can use the ‘Executive Summary’ as a primer for the rest
of your marketing plan. You may include things like:
Simple marketing goals Marketing strategies and tactics

Challenging aspects of macro/micro- Future goals and plans
environment
Key findings from SWOT analysis High-level performance metrics
Brief overview of market and demand- Budget
supply gap
Marketing objectives And few more critical points if any
Facts about your brand/product mix
The executive summary tells readers about the company’s growth, and
how they are going to maintain their growth story.
2. Business Mission Statement: We have understood business mission

development and its scope in earlier section. Kindly, glance to visualize
this component of marketing plan. Here defined ‘Business Mission’ is
represented so as to connect subsequent component of the marketing
plan.
3. Marketing Objective/s: We have understood goal formation earlier.

From the goals, you will have to develop objectives. Generally,
objectives have numeric connotation as it is considered as the base on
which strategic and tactical push is given, resources are allocated, and
performance is monitored. Salient aspects of objective development to
be kept in mind are as follows;
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a. Objectives must be arranged hierarchically from the most to least

important
b. Objectives to be stated quantitatively – In the year 2020, motors
bearings sale will touch INR 200 crores, registering a jump of 6%
over the year 2019.
c. Objectives should be realistic
d. Objectives must be consistent – with corporate and business mission
and goals
4. The Market Overview: It is essential to present the complete overview

of the entire market for the product under consideration. You must
present complete volume idea (in nos and value), competition, product
and product mix available in the market, you may then give idea about
sales volume, marketing share, you may present the trend in volume
and value sale – overall and competition wise, product category wise,
etc. You may cover new product introduction, diffusion of new product,
you may then go further and present zonal and regional picture. At the
end of this section’s reading, one must get the complete perspective
about the current market.
5. Environment Analysis: As covered in earlier chapter on environment,

we have understood what environment analysis is, and related aspects.
Using PESTEL, one must present the complete environment analysis.
Environment analysis can also cover situation analysis using SWOT
method. At the end, you summarize possible strengths of yours you
may capitalize, weaknesses you need to improve upon, opportunities
available to you to leverage it and threats you must defend yourself
against.
6. Competition Analysis: It may get covered under environment analysis

along with SWOT. Separate section will allow better coverage of
competition and provide deeper understanding. In fact, it is most
complicated section as it is like covering multiple marketing plans on
one section as you need to represent competition volume, revenue,
product strategy, price strategy and likewise other components of
marketing mix. Besides this, you need to cover likely competitive moves
by the competition and their likely future volume and revenue.
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7. Marketing Strategy: Strategy gives unified approach to move forward

by giving the direction and force both. We have studied what is
marketing strategy under section 15.4, thus request you to glance at it
to have continuity.
Strategy gives the direction and provides momentum as every business

and divisions action will get a force out of unification of their efforts. One of
the world’s leading soft drink manufacturing company’s CEO announced a
strategy – ‘We will no more quench the thirst of individuals, instead we will
occupy the share of their tummy’. Thus, they chartered a new territory for
themselves namely packaged foods, juices, etc. Also, it was a smart way to
gain more thirst quenchers because once you eat such foods, you will often
feel thirsty or will start preferring having thirst quenchers like colas,
flavoured drinks and bottled juices together with such snacks. Tactically,
they aligned with all restaurants, pizza outlets; roadside food stalls where
combo-pack was offered – Pav-bhaji with soft drink free! It was a biggest
groundbreaking strategy, being adopted by others out of force.
8. Marketing mix: Here you dwell upon 4P’s (Product)/8P’s (Service) of

marketing mix. It is represented to cover how are you internalizing the
planned strategy in terms of your marketing mix;
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a. Product: New product, product-mix, product width/length, packaging

as product and more.
b. Pricing: You will work out your pricing strategies/tactics – skimming,

penetration, bundle pricing, promotional pricing, margins,
contributions towards schemes/promotions, credit, finance and more.
c. Promotion mix: You will re-orient your promotion mix to suit not
only your product mix changes, sales challenges, reach challenges
and marketing challenges (penetration, visibility, leads generation foot
falls increase, etc.).
d. Place: Today’s world, place also place an important role – so much is

spoken about brand exposure, experiential marketing, engagement,
brand voice, changing consumer buyer behaviours, changing loyalty
criteria such as convenience instead of quality (thus online!), makes
channel development, alignment also a challenging tasks. Competitive
pressure on margin needs efficient distribution besides exposure to
digital era and ease of mobility, thus consumers have got into buying
where either best offers are there (may be at a distance), or offers
convenience thus online or product is such it needs exclusive show
room, franchisee arrangement, mother warehouse, distribution
centres to meet timely deliveries and more. In all these scenarios,
place plays a critical role.
Your strategic inclusion and tactical plans need to be covered for each
of the above. However, service marketing has few additional marketing
mix components, which also needs to be covered.
e. People: In service marketing, its people who represents your face

and offer unforgettable moment of truth while delivering the service.
This is because a service is inseparable from the person providing it. A
restaurant is known as much for its food as for the service provided
by its staff. The same is true of banks and department stores. Their
skill sets, training, development and technology absorption will make
or break your brand. How are you doing to handle this aspect, needs
to be covered.
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f. Process: The process of service delivery is crucial since it ensures

that the same standard of service is repeatedly delivered to the
customers. Most companies have a service blueprint which provides
the details of the service delivery process, often going down to even
defining the service script and the greeting phrases to be used by the
service staff.
g. Physical evidence: Since services are intangible in nature, most

service providers strive to incorporate certain tangible elements into
their offering to enhance customer experience. Many hair salons have
well designed waiting areas, often with magazines and plush sofas for
patrons to read and relax while they await their turn. Similarly,
restaurants invest heavily in their interior design and decorations to
offer a tangible and unique experience to their guests.
9. Marketing support planning: Success of marketing depends on

numerous support tasks being carried out such as customer need
understanding research, product clinic, test marketing, promotion plan,
direct marketing activities, loyalty programs, CRM planning and more.
These aspects need to be articulated in detail but can be at the macro
level as later on you need to prepare their detailed plan.
10.Forecasting: Based on all above strategic aspects, tactics, marketing

communication and promotion plans, using appropriate forecasting
method, forecast for the next marketing plan year vis-à-vis short term
say 3 years’ volume forecast is presented. This should be in line with
marketing objective and same is considered for calculating the revenue
forecast.
11.Budget and resource planning: Everything culminates into budget

which provides information about expenditure on one hand, and
revenue on the other hand depending on pricing strategy, network
security deposits, loyalty membership contribution and similar such
other revenue heads. Also, complete resource planning needs to be
provided – team expansion, infrastructure, network development and
other such needs to be articulated and budgeted in the income and
expenditure statement.
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Sensitivity analysis also forms the part of this financial section, which
simulates What-If condition and brings out its impact on profitability and
ROI. Finally expected profitability and ROI is mentioned.
12.Implementation: Marketing strategy implementation is the process of

turning plans in the actions. It describes who does what, when, and
how. Effective implementation requires skills and allocating, monitoring,
and organizing, and interacting at the level of marketing functions,
programs, and policies. Implementation success depends upon cross-
functional involvement of all related stakeholders – channel team, sales
team, zonal/regional team, etc.).
Implementation planning needs to cover:
❖ What needs to be implemented? – Develop a complete brief
❖ When and where it needs to be implemented? – Identify time and
place of implementation
❖ How will the implementation take place?
❖ Develop time plan: cover pre-implementation stage and task within
– making TVC, advertisements, promotion readiness, launch,
publicity, PR and more.
❖ Create teams: You may have to form team either internally from the
marketing department or the cross functional team. Each team
should have one person owning the execution and result
responsibility and she is assisted by people specializing in their own
areas – marketing support department person for marketing
communication and promotions, corporate communication person for
publicity, PR and likewise. Roles and responsibilities should be clear,
and seniors must periodically review the progress and emerging
results.
❖ Create effective internal communication: It is essential to take
not only the stakeholders but organization as a whole together. Close
to the actual implementation phase, send creative and effective
communication, which is engaging, informative and immersive
making each member part of the journey and assumes due
responsibility to make it successful.
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❖ Timeline: Develop expected timeline for key implementation
program and its stages. This is done in consultation with involved
stakeholders and other departments.
❖ Review dashboard: It makes sense to determine core measurable
criteria pulled together to develop one review dashboard, decide its
frequency and entrust its responsibility to someone for updating.
13.Organizational direction: You may not find this component in most

talked about marketing plan information sources. From my experience, I
am including this as one of the component. Marketing manager is not
only able to visualize short-mid-long terms future, she is also in a better
position to give certain directional inputs to the organization as she
knows ground realities and opportunities if any.
Marketing plan can cover aspects like take over, mergers, joint venture
possibilities which may give sustainable long-term advantages to the
product category and the organization. This will get noticed by the
corporate team and may facilitate the same as they are always looking
for strategic and tactical growth opportunities.
14.Annexures: Various annexures are provided in one place with may be

index for quickly locating and referring.
We have understood the complete structure of a marketing plan.

Empowered with this structure, you may need to tweak it to suit your
industry and organization needs.
15.7 MARKETING PERFORMANCE EVALUATION AND

CONTROL
Marketing performance management is the organizational capacity for

improving the ROI and effectiveness of marketing. It encompasses the
planning process, performance measurement and establishment of
predictive analytics.
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Fig. 15.8: Marketing Performance Measurement
To implement a strong marketing performance management function

marketing teams must:
1. Align marketing teams to revenue goals and corporate goals
2. Establish accountability and measurability for revenue goals
3. Planned performance review practice must be followed
4. Conduct marketing audit
5. Implement predictive capabilities for revenue
Let’s understand above tasks one by one briefly.
1. Align marketing teams to revenue goals and corporate goals:

Marketing performance management entails creating processes and
managing resources for the marketing team with the goal of efficiently
achieving business objectives, primarily revenue. This means building
and managing teams, allocating budgets, setting smart goals, and
accurately tracking and measuring the right metrics.
Marketing plan gets percolated down by way of Sales plan, zonal plan,
region plan, branch plan and individuals plan vis-à-vis performance pay
linked with planned volume. Team gets aligned with the numbers in front
of them. We will study this in subsequent section 15.8.
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2. Establish accountability and measurability for revenue goals:

Accountability and performance measurability can come when individual
is aware about her key performance criteria. Thus, KPI (Key
Performance Indicators) are derived and finalized based on marketing
plan and derived plans. Individual’s key performance indicators are
different from team, departments and divisions. Indicative marketing
key performance indicators could be:
Increase leads generation by Annual volume target of 126500 nos

10%
Achieve market share of 22% Online sale % to be 15% of total
volume
Key performance indicators are the metric goals set by businesses that
progress toward the overall success of the company. Once a company
establishes KPIs, it can measure progress and analyze the data to push
toward higher goals.
Inclusive participation during marketing planning stage from all the

stakeholders will make it acceptable and energizing enough to drive an
individual to perform better and achieve the KPI.
3. Planned performance review practice must be followed:

Formation of KPI and dashboard is not merely enough. Planned
performance review practice must be followed. Planned performance
review may follow following approach, subject to its adaptability as per
the industry and the organization.
a. Weekly review: Review target for the month, leads on hand,
pipeline and its classification in to yellow, green and red symbolizing
maturity of lead, plans for the fortnight/month to reach target, any
threats perceived, emerging, etc.
b. Monthly review: Review target v/s actuals, cumulative target vs.
actuals (in the month of June, you will also review cumulative figure
of volume form Apr, Mat and June), leads maturity, pipeline, order
lost, and overall understand reasons for low target achievement,
what can be done. You also review outperformers to know where
market is turning favourable.
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c. Quarterly review: May include above but additional review of

feasibility of fulfilling deficit in volume in the subsequent available
period, expected short-fall, support needed, what needs to be done
by the team, competition review and re-look at implementation plan
to determine whether any planned launch did not happen, impact of
it on volume, planned marketing communication, promotion and its
impact, etc.
d. Half-yearly review: More intense in nature. It may include all of the
above but focus also considers re-arranging subsequent half volume,
implementation plan, specific scheme, ground level activations if any,
competition handling. Bird’s eye view is also taken to see, if any
favourable condition in other regions will help in achieving overall
target, re-allocating budget, network considerations are also taken
up.
e. Ad-hoc reviews: During above reviews, if any areas, region, zone
needs careful watch, additional ad-hoc review gets decided with more
frequent reporting and ground level vibrancy and situation
monitoring.
4. Conduct marketing audit: Generally, it is an annualized activity, but

interim marketing audit can also be planned based on the spread and
depth of marketing, budget involved, etc. Marketing audit is through,
systematic, periodic evaluation of the goals, strategies, structure, and
performance of the marketing organization.
Marketing audit has following four characteristics:

• Comprehensive: It covers complete overview, line of business wise,
product-mix wise, brand based, spend, effectiveness of marketing
communication, promotions, scheme vis-à-vis benchmark from the
industry or similar industry.
• Systematic: It follows systematic, step-by-step approach and uses
marketing plan’s order in terms of their probing – mission, marketing
objective, environment, market, strategy, etc.
• Independent: The marketing audit is normally conducted by an insider
or outside party who is independent enough to have top management’s
confidence and to be objective in assessment.
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• Periodic: Being a planned activity, its periodic cycle needs to be decided.

You may create a different cycle – A category which contributes 70% of
volume may need bi-monthly, B category which contributes 20% may be
half yearly and others yearly.
Utility of this practice within the organization is that it entails responsibility

among brand and marketing team to look at money spent and its impact
on result. Derivative of this will be grey areas found, imbalanced spent vis-
à-vis industry benchmark, reasons for failures and success, which may be
translated into improvement plans to not only make marketing planning
more relevant but also be focused on return on investment.
15.8 DERIVATIVES FROM THE MARKETING PLAN

In this section, we will derive the understanding about the various other
derived components, which will not only explain you how organization level
planning works but also help you to understand the utility of any marketing
plan.
However, please refer one Fig. 15.2 – Four Organization Levels and
under that, ‘Rotational Parts’ point for which marketing plan is
prepared. Following understanding will also be applicable to other
business product units namely motors, bearings, hub-units and
components.
After the development of Rotational Parts marketing plan, following will be

derived:
a. Sales plan: During the planning process, they may also prepare their
independent projections but eventually sales and marketing needs to sit
together and derive a unified plan. Management will never accept
differences in volume projections, resource requirements, budget
requirements, as well as other mismatches. Between marketing and
sales, also the budget for sales promotions and other such schemes
specific budget considerations are discussed and finalized.
Besides the above, implementation of new product, product mix

development, introduction timeline gets discussed and finalized. Also,
performance parameters with dashboard and controls are conveyed.
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b. Zonal level plan: Organizations having zonal level structures will

develop zonal plan post the development of marketing plan. Zones will
also get an idea about sales promotion and marketing scheme budget
allocations, local level allocation of budget for local promotions, local
schemes (which essentially comes from the sales function), which they
are freely allowed to manipulate for their advantage. Individuals
responsible for the specific product category will also get her numbers
from the finalized zonal plan.
Besides the above, zones will be informed about any new product/s,
product mix development plans, and applicable timeline. Also,
performance parameters with dashboard and controls are conveyed.
In a competitive market, information may be withheld or partially

provided when it comes to new product intro, product mix development
plan, etc.
c. Regional level plan: From the zonal level plan, regional level plan will
emerge with other aspects remaining same. Head office may allow
Zonal-Head to decide regional plan and budgets but guiding numbers
are certainly provided. Individuals responsible for the specific product
category will also get her numbers from the finalized regional plan.
Besides the above, regions will be informed about any new product/s,
product mix development plans, and applicable timeline. Also,
performance parameters and controls are conveyed.
d. Branch level plan: Organizations having branches will also derive

branch level plans.
e. Individual level plan: Based on the above, individual level plan for the
team responsible for specific product category will get decided.
f. Implementation plan: Based o the above info, organization will seek

reverse inputs from branches, regions and zones about their
implementation plan, resources needed, budget needed, any
competition handling support needed besides other relevant inputs. All
this gets unified at the head office level to create sync and make
numbers transparent and challenging yet aspiring.
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g. Performance management and rewards system: Based on the

above numbers and performance parameters decided at the macro
level, performance management and rewards system will get decided in
consultation with corporate HR team. Now a days most managerial staff
has fixed pay and variable performance pay. Based on the finalized
performance and rewards system, individuals will get intimation about
volume level at which she will get her complete performance pay, below
which she will either get partially paid or not paid. Also, for higher
performance level also she gets intimation about incremental
performance payouts. This is generally a joint exercise before its
finalization.
India follows April-March financial year system; thus, most companies

trigger planning activity by November and complete it by February end.
However, many companies with international collaborations, where
parent company follows calendar year as their financial year, may adapt
different planning period. In India, Government does budget
announcement at the end of the February month, post which companies
do undertake plan revisions but at the macro level. Other plans are
tweaked accordingly, and effects of macro level changes are conveyed to
the downline.
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15.9 SUMMARY
“By failing to prepare, you are preparing to fail.’’ – A popular quote

from Benjamin Franklin is the foundation of any planning process.
Marketing planning is a key to successful marketing and covers three areas
namely planning, implementation and control. Market planning is the
process of organizing and defining the marketing aim of a company and
gathering strategies and tactics to achieve them.
The marketing planning process involves a series of five steps, starting

from questioning where are we now till the last step in which you derive
ways in which you will ensure your reaching the decided milestone. We
have understood the difference between marketing strategy development
and marketing planning. We have understood what strategic planning is
and same is done at the four different levels – corporate, division, business
and product. We have covered phases and entire process flow of strategic
planning, its implementation and control.
We have understood business planning process – defining the mission, goal

formation, strategy formulation, and marketing process.
We have understood what marketing plan is, its criticality and complete
structure of any marketing plan. We have understood way in which
marketing performance can be evaluated and controlled. Besides this, we
have covered different derivative plans from the marketing plan, how
implementation gets coordinated and its link with performance
management and reward system.
514

1. Why marketing planning is a key to successful marketing? Briefly lists
coverage of marketing planning.
2. Explain the panning process in brief.
3. What is strategic planning? Explain its difference vis-à-vis marketing
planning.
4. Provide planning, implementation and control perspective involved in
any strategic planning.
5. Explain the marketing process briefly under marketing planning.
6. What is marketing plan? List its salient aspects in brief.
7. Explain the structure of any marketing plan – Be brief but explain it
well.
1. The process of marketing management needs attention to three areas

namely (i) Planning, (ii) _________ and
(iii) control.
(a) Positioning
(b) Promotion
(c) Implementation
(d) Development
2. Market planning is the process of organizing and defining the ________

of a company and gathering strategies and tactics to achieve them.
(a) Market
(b) Marketing aim
(c) Marketing plan
(d) Market reach
515
3. The marketing planning process involves a series of four steps in which

aspects like (i) Where are we now?, (ii) Where do we want to be?, (iii)
How can we get there?, (iv) _______ and (v) How can we ensure
arrival?
(a) Which way is the best?
(b) What we should avoid doing
(c) What we should build for future stability?
4. ________ is goal-driven activities and tactics to help you achieve that

vision.
(a) The marketing strategy
(b) A corporate plan
(c) A business plan
(d) A marketing plan
5. The goal is defined as the object of a person's ambition or effort, an aim

or desired result. The goal setting follows a practical way of ______
formation.
(a) S-T-A-R-T
(b) S-T-R-A-I-G-H-T
(c) S-M-A-R-T
Answers: 1. (c), 2. (b), 3. (a), 4. (d), 5. (c).
516
REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
517
1.Promotion refers to any type of marketing communication used to inform or ___________ of the
Entice customers to buy
Persuade target audiences
2. Promotions are for specific immediate objectives such as lead generation, first trial, ____________,
Customer database updation
Repeat purchase drive
Seek more sale from existing customers
3. Promotion is one of the Ps of the marketing mix. The subject of promotion covers promotion mix,
Promotion approach
Promotion initiatives
Promotion policy
Promotion strategies
4. The purpose of one of the types of promotion is to encourage and offer incentives to distributors to
trade promotion
marketing promotion
sales promotions
5. Marketing mix of any organization have ‘_________’, which is a blend of several promotional tools
media mix
product mix
promotion mix
publicity mix
6. There are five elements of any promotion mix namely advertising, __________, personal selling,
digital promotion
sales promotion
public relations
consumer promotion
7. There are three different types of promotions. Rishikesh, handling new mixer promotion in which
by just paying 5% of the cost of product and take delivery anytime within next 3 months. This type of
promotion is recognised as?
product promotion
channel promotion
consumer promotion
trade promotion
8. Each promotion mix is effective at certain stage. When ____________ with customers he can utilize
9. In every TAJ MAHAL GROUP HOTELS, you get a form in which you need to answer few questions,
write a slogan and provide your personal details to be eligible for mega prizes offered by the respective
advertisers. This form of sales promotion is known as __________?
Loyalty programme
Contests approach
Rebate programme
10. ‘______________’ is a direct communication between seller & buyer either face to face or through
Personal selling
Direct marketing
Sales promotions
Digital marketing
11. Public relations is a ____________ because it builds mutually beneficial relationships between
not for profit
12. Industrial (B2B) promotions needs to achieve certain things different from B2C market. Amitabh,
existing motors installed thus I can move more goods in short time and save electricity also. his predict is
well accepted because his B2B promotion would have achieved specific deliverable. What this
deliverable could be?
enrich information
13. Various important points that you need to take care of for effective marketing communications are
a) _________ b) design and c) feedback.
communication idea
persuasive message
message delivery
message mediums
14. Marketing communication has to achieve three core objectives namely convey product, inform
about the product and _________.
persuade to buy
seek demonstration
15. Madhusudan, Head-Marketing VOLINI India, developed one TV Commercial for new pain relieving
removed and applies the ointment post which both in a jovial mood playing with the kid. Why do you
think this will work to create desired impact?
16. The sole purpose of marketing communication is to increase the volume of sales by ensuring 4
actionability
inducement
reinforcement
17. Advertising media must be carefully evaluated. It pursues media evaluation model namely AIMRITE,
where M stands for ________.
media
message
mode
maximization
18. Advertising mediums are selected based on two critical parameters, One of the parameters looks at
Reach
Reliability
Rationality
Relativity
19. For managing advertising, there are three core phases that needs to be managed, namely challenge
deciding the medium
20. For managing advertising, there are three core phases that needs to be managed. Post first core
organization goals
SBU goals
channel goals
21. When you develop your media plan, you also develop media mix. Media mix gives you info such as
____________.
none of the above
22. Atharva, Head Marketing of one durables making company has developed his digital marketing
Pay per click
Content Marketing
23. Key differentiating feature of ___________ is overall all the messages from the organization tell the
same story..

24. Marketing must understand the classification of innovation before deciding promotion mix - firm-
oriented, product-oriented, ________, and consumer-oriented
market-oriented
channel-oriented
category-oriented
25. During adoption stage, a consumer moves through five stages in arriving at a decision to purchase or
reject a new product, namely 1) Awareness 2) Interest 3) ________ 4) Trial and 5) ___________.
Assessment
Evaluation
Comparisons
26. Place as one of the P's of ___________ is responsible to ensure convenient availability of products at
the right locations at the right time.
Product mix
Marketing Mix
Promotion mix
Distribution mix
27. Engagement with the product/brand is the result of ___________ as under one of the P's of the
marketing mix.
28. There are four main types of distribution channels namely a) Direct distribution channel b) Indirect
29. Place decisions are not necessarily based on nature of products - If you choose any general store, it
I fully agree with this.

30. When a company may use a combination of direct and indirect selling channels, then company has
Dual distribution
Direct distribution
31. Two types of issues influence channel strategy development - a) factors affecting channel choice and
market factors
product factors
producer factors
performance factors
32. While taking channel decision, after evaluating benefits available due to channel chosen, marketers
must weigh possible channel cost such as Lost Revenue, ________ and Lost Product Importance.

33. Lost Communication Control
34. After the ____________ are set, it is appropriate to determine the specific distribution tasks to be
performed in that channel system such as provide delivery within 48 hours after order placement.
35. You see so many online spectacle store Lenskart's branded brick and mortar show rooms across
cities offering same variety, and customer service, support. This is due to one of the new age alternative
channel approach. Identify this channel approach.
Licensing
Online
Extension stores
Franchising
36. ____________ are the planned actions that direct the promotion of a product or service to influence
specific marketing goals.
Marketing strategies
Marketing mix
Marketing tactics
Marketing planning
37. The competitive strategy outlines the fundamental basis for obtaining a sustainable competitive
advantage within a category. Firms can normally trace their competitive position to one of three factors
namely __________, superior resources and superior position.
superior technology
superior image
superior advantage
superior skills
38. At Global Components India’s components manufacturing division's Marketing department at their
independent to use locally viable tactical plans. Result of the above was not encouraging. How will you
make it work?
39. During the development of strategic marketing plan various process specific steps are undertaken.
available methods.

40. ____________ has developed one popular model to help you determine how can you reach where
you plan to reach. This model is popularly known as Growth-Share Matrix. Identify the developer.
GE Market Matrix
41. Sony TV has introduced new Bravia model with state of the are features including Android
compatibility. Bravia was introduced in a growing interactive TV market and gained high market share.
In a strategic portfolio BCG analysis Tata Tigor can be classified as what?
Star
Question marks
Dogs
Cash cows
42. One of the another popular marketing strategy development model __________ helps you
determine how can you reach where you plan to reach by plotting relevant matrix. This model is
popularly also known as?
Boston Consulting Group's model
GE Matrix model
The Ansoff's model
Porter's Competitive forces model

43. Diversification strategy as per the Ansoff's matrix has two different sub-sets of strategies. One of the
sub-stage strategy is known as Vertical diversification. Vertical diversification suggests __________.
44. Five constituents of a value chain enables any organization to create value for customers and
competitive advantage for the self. Five constituents include inbound logistics, ___________, outbound
logistics, marketing and sales and service.
movement
warehousing
operations
retail
45. Focus of Business to Consumer nature of organization is ____________ - right from need
understanding, to product development, channel development, channel development, advertising
medium selection etc.
profit centricity
channel centricity
customer centricity
organization centricity
46. Tarun, Head-Marketing of an organization resorts to market specific multi-strategy approach – some
markets introduce new products, some markets need to be developed, few markets you must
penetrate. Identify the nature of organization. Identify the format of the organization.
Service marketing
47. Mayur, Head-Marketing is planning his go to market approach for his new product. He has identified
that he needs to enter petro-chemical, refineries and speciality chemical units where his product is
extensively used. Identify nature of organization format of Mayur.
Service marketing
48. One of the nature of organization is such where purchases being rational, the only way to maintain
innovativeness to overcome price barriers. Identify the nature of organization.
49. DHL as a service provider claims that they provide ontime delivery guarantee. DHL releases

50. One of the format of marketing organization need to constantly plot consumers encounters at the
Service marketing
51.One of the nature of organization is in to direct selling. Such organization are identified by multiple
level based network of individuals and recognised as multi-level marketing organization. Certain aspects
about them differentiates them from the rest of the marketing formats. Identify those differentiating
aspects.
52. When any Indian organization wants to become an international marketing organization, they need
to resorts to Collaborations, _________, Take Over, Mergers or Acquisitions.
Channel development
Joint Venture
Be a distributor
Become an affiliate
53. Affiliate marketing is a type of _____________ in which a business rewards one or more
participating partner for each visitor or customer brought by their own marketing efforts.
volume driven reward marketing
lead based reward marketing
digital marketing
performance-based marketing
54. Affiliate marketing is a collaborative efforts of at lest four parties. One of the parties actually markets
the product using marketing and convince potential customers of the value of the merchant’s product
so that they actually end up buying it. Identify this party in affiliate marketing.
the promoter
the merchant
the publisher
the public
55. Affiliate marketing is a collaborative efforts of at lest four parties. One of the parties is the one with
the network
the promoter
the publisher
the partner
56. You develop ____________ when you can combine the market strength, brand awareness, positive
them.
57. Consider that PUPPY-LOVE is India’s largest dog food maker. They have decided to have direct
channel of distribution from their manufacturing unit at Noida. They enter in to an understanding with
Flipkart's logistics service providing arm to ensure time bound delivery of ordered items for one quarter.
This is considered as what types of co-branding?
58. Different ways exists to pull business towards you. One of the bowling alley has worked out with
nearby PVR cinema chain that people buying token worth Rs 500 will get one ticket at 25% discount and
people showcasing their ticket stub at the premise, will also get 25% discount on coupons purchased.
Such marketing concept is recognised as what?
Co-branding
Affiliate marketing
social marketing
59. Marketing Technology tools are used to streamline marketing processes, collect and analyze data,
and provide various means of reaching and _________engaging with your target audience.

60. Technology adoption in marketing is crucial for effectiveness and competitive advantage. One
61. IT architecture for the marketing automation technology includes Enterprise Data Foundation, Major
Marketing Technology Platforms, _________ and Sales Services, and Major Channels.

62. Analytics solution program under marketing technology stake helps you with __________.
63. Organization must choose right stake of APPS for their marketing Tech HUB. For this, they must
understand what kind of support needed to be effective and efficient. Organization must first do
__________.

64. For the marketing management to succeed the three stage process needs to be in place namely
____________, implementation and control.
programming
preparing
planning
Pre-estimating
65. The marketing planning process involves a series of steps in which key five aspects are probed. Probe
related to one of the aspect namely '__________' includes full analysis of the company’s present
where are we now?

66. Any strategic planning has three core components namely planning, implementation and control.
namely measuring performance, ____________ and taking corrective action.
\comparing performance
providing feedback
diagnosing results
67. SWOT analysis is one of the methods that helps you to understand where are you currently. It’s a
2x2 matrix where in you plot Strengths, Weakness, Opportunities and threats. Out of these 4 quadrants
____________ are aspects of external attributes of the environment origin.


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Chapter 10

Dynamics of Place in Marketing

Promotion Decisions Under Marketing

Pricing Decisions Under Marketing

___ as an intermediary is an independent entity who acts as an extension of the producer by

B2C format organizations produces goods for whom?

Tarun, Head-Marketing of an organization resorts to market specific multi-strategy approach – some

Co-branding are of two types namely __ and Communications based co-branding.

119. One of the benefits of utilizing wholesaler/retailers is that they generate

120. Availability of railway tickets on internet is a _____ marketing form of utility.

123. Irrespective of marketing communication methods you use, it will be

127. A pricing strategy considers targeted segments, ability to pay, market

132. Price inelasticity means what?

136. In a market with clutter, it is essential to maintain your advertisement level.

138. Earlier various stakeholders used to communicate what are relevant to

144. GE Mckinsey model dwells upon a market growth attractiveness vis-à-vis-

147. Strategy formulation is built on “ the match between organizational

154. Marketing segmentation exercise when completed, it helps organization in

156. Mission is defined as an important milestone given to a group of people ,

158. Selecting strategic alternative is not as simple as indicated in ‘Ansoff

160. Any Marcom has to achieve three core objectives namely a) to

161. Sales promotion is an ongoing activity in which an incentive is offered to

164. In marketing communication process, other than sender, encoding,

166. Service marketing is different from product marketing. Service pricing is

171. Shareholders of Raymonds receives set of entitled number of coupons

174. Price elasticity of demand is explained as what?

7. PRICING DECISIONS UNDER MARKETIN

8. PROMOTION DECISIONS UNDER MARKETING

10. DYNAMICS OF PLACE IN MARKETING

11. MARKETING STRATEGIES AND TACTICS

12. DIFFERENT FORMATS OF MARKETIN

13. DIFFERENT CONCEPTS OF MARKETING

14. TECHNOLOGY ADOPTION FOR THE SUCCESSFUL MARKETING

15. MARKETING PLANNING, PERFORMANCE AND CONTROL

1. Penetration pricing strategy is different from the premium pricing strategy.

2. Pricing strategy is critical for the marketing objective achievement . Broadly

4. Identify top three steps of developing a successful direct marketing

5. As a smart personal selling sales person mere generation of lead is not

6. There are three different types of promotions. In one specific types of

8. The advertising message often contains a reason for customers to be

9. Fundamental focus during sales promotion planning needs to take care of

11. In one of the advertising budget development method, our focus on

14. There is a difference between marketing strategies and marketing plan.

Q34. Selecting strategic alternative is not as simple as indicated in ‘Ansoff Matrix’.

Q40. Selecting strategic alternative is not as simple as indicated in ‘Ansoff Matrix’.

Q43. Planning is of two types namely strategic planning and__________.

Q46. Shareholders of Raymond’s receives set of entitled number of coupons indicatives

Q50. ‘Advertising objective’ defines follows a model known as_______.

1. In marketing communication for new product after diffusion marketers need to

MARKETING MANAGEMENT PRACTICE MCQS WITH ANSWERS

Q. Public relations is a ____________ because it builds mutually beneficial relationships between

Q. ____________ is a long-term, forward-looking approach to planning with the fundamental goal of

Q. At Global Components India’s components manufacturing division's Marketing department at their

Q. B2C format organizations produces goods for whom?

Q. Tarun, Head-Marketing of an organization resorts to market specific multi-strategy approach – some

Check Answer Report

Here indicate UserGiven Answer

objective, then __________.

number of customers demanding your services