SRI VIDYA MANDIR ARTS & SCIENCE COLLEGE

DEPARTMENT OF MANAGEMENT STUDIES

RETAIL MARKETING MANAGEMENT

Staff: Mr.K VENKATESAN Class: III BBA & III BBA CA

SYLLABUS
UNIT – I
Definition of Retail Marketing –– Features of Modern Retail
Marketing –Importance of Retail Marketing – Types of Retail Marketing
– Retail Marketing Mix-Reasons for Studying Retailing.
UNIT – II
Functions of Retail Marketing – Buying-Kind of Buying, -
Assembling - Merits & Demerits - Selling Kinds of Selling –
Transporting-Merits & Demerits.
UNIT – III
Storage – Definition – Functions – Warehousing – Types of Warehousing
– Risk – Types of Risk -Retail Market Information – Grading – Types of
Grading – Standardization – Benefits of Standardization.
UNIT – IV
Buyer Behavior – Consumer Goods and Industrial Goods – Buyer
Behavior Model – Factors Influencing Buyer Behavior - Market
Segmentation – Need and Basis.
UNIT – V
Retail Sales Forecasting – Methods –Products – Classification –
New Product Development Process – Product Life Cycle –Line and
Product Mix Decision.
TEXT BOOK
Retail Marketing Management – David Gilbert, Perason Education.
REFERENCE BOOK
1. Golabal Marketing Management – Warren J. Keejan, Printice – Hall of
India.
2. Retail Management – Chetan Bajaj, RajnishTuli, Nidhi V Srivastav -
Oxford University Press.
3. Retailing Management – Michael Levy, Barton A Weitz and Ajay
Pandit– McGraw Hill.
4. Retailing Management – Text & Cases – SwapnaPradhan – McGraw
Hill.
5. Retail Marketing Management – David Gilbert – Pearson Education.
 UNIT-I

Meaning: Retailing

All activities involved in selling goods or services directly to final consumers

for their personal non business use.

Retailer:

Marketers acquire/receive large quantity of products and divide them up into

smaller units to be sold to individual consumers

Meaning of Retail:

“Retail means a piece of (or) to cut up”

This implies the marketer acquire/receive large quantity of products and divide
them up into smaller units to be sold to individual consumers. It is a business activity
of selling goods (or) services to the final consumer.

Definition:

According to philipkotler defines retail marketing as, “all the activities

involved in selling goods (or) services directly to final consumers for personal, non-
business use.”

Features of modern Retail Marketing:

Retail modern marketing covers all business activities in order to ascertain the
demand. Product planning, distribution and faciliting the entire marketing process.

 It requires less capital

 It is the last link in the chain of distribution.

 It requires window dressing to attract the consumer.

 Retailers sell goods directly to the ultimate customers.

 Retailer maintain personal contract with consumer.

 Retailers buy and sell goods in small quantities.

 Retailers generally operate near the residential areas.

Importance of Retail Marketing:

Retailing provides necessary service and positive contribution to the economy.

The importance of retailing is given below:

 Retailing shapes the life style of people

  Retailing contributes to the economy.

 Retailing dominates the supply chain.

 Retailing is interdisciplinary.

 Retailing offers itself as an academic course.

 Retailers have status as employers.

 Retailers are gate keepers within the channel of distribution.

 Retailers have scope for expanding internationally.

1.Retailing shapes the life style of the people:

It shapes the way of life. In the post, trading of goods was a port of a
traditional society. Buying and selling of goods have become a brand dominated
activity.

2. Retailing contributes to the economy:

The importance of retail sector in reflected in its contribution to the growth of

an economy. Retailing is the driving force of the economy. It aims at promoting its
sustained growth.

3.Retailing dominates the supply chain.

Consumers are large in number and are widely distributed, the role of retailers
become crucial. Retailers serve as a connecting link between the wholesalers and
consumers.

4.Retailing is interdisciplinary.

Retailing has emerged from a number of interrelated disciplines such as

geography, economics, management and marketing.

5.Retailing is acknowledged as a subject area in its right:

Retailing is an accepted area of academic debate, such as marketing and

management, developed fully as an area of study.

6.Retailers enjoy status as major employers:

Retailers employ a significant proportion of the overall work force. This

highly flexible work force is capable of adapting to the differing labor demands.

7.Retailers are gate keepers within the channel of distribution:

Retailers are becoming increasingly important in their roles as gate keepers

within the channel of distribution.
8.Retailing has scope for expanding internationally:

The mgt of retail operations in markets which are different from one another
in their regulation scope social conditions cultural environment and retail structure.

Factors influencing modern Retail Marketing concept:

There are several factors responsible for the through of “the modern concept
of marketing” the factors in brief are:

1.Population growth

Increase in population causes increasing the markets, increasing the consumers

who have increased demand for goods, varieties, preference, etc.,

2.increasing households:

Most of the familiars are sub-divided and this increases the number of families
and their demands.

Eg: Automobiles, refrigerators, electrical appliances etc.,

3.Disposal of income:

When employment opportunities increases people have increased their income

and in turn their purchasing power also increases.

4.Technological development:

New inventions of products takes place often. A number of new products, in

the place of old ones are being introduced into the market often.

5.mass communication media:

Through media like newspapers, TV, magazines buyer gets information about
the new products more effectively before the products come to the market.

6.credit purchases:

Installment schemes, hire purchase schemes are common today customers can
enjoy the facilities and this wide the market.

7.Nearness market:

8.customer aware of all products in the market.

9.sellers image:

10.warrantee of guarantee by retails:

TYPES OF MAJOR RETAIL OUTLETS:

Retailing refers to a process where the retailer sells the goods directly to the
end-user for his own consumption in small quantities.

1. Departmental Stores:

A departmental store offers several product lines such as clothing, home

furnishing and household goods under one roof. Each line operates as a separate
department. For example, Akbarallys.

2. Speciality Stores:

A specialty store concentrates on a narrow product line or a specialized

product line; for example, footwear and jewellery.

3.Supermarket:

A supermarket provides relatively large low-cost, low-margin, high-volume,

self-service operation; for example. Big Bazar.

4. Convenience Stores:

A convenience store is conveniently located in suburban areas and charges a

slightly higher price and provides groceries and non-food items.

5. Discount Stores:

A discount store offers standard merchandise at low price with low margin and
high volume.

6. Factory Outlets:

A factory outlet is opened and operated by manufacturers, and sells surplus or

discounted goods.

7. Shopping Malls:

Shopping malls are the new format of retail outlets. They provide several
products under one roof .

8. Warehouse Stores

A retail format which sells limited stock in bulk at a discounted rate is called
as warehouse store. Warehouse stores do not bother much about the interiors of the
store and the products are not properly displayed.

9. Mom and Pop Store (also called Kirana Store in India)

Mom and Pop stores are the small stores run by individuals in the nearby
locality to cater to daily needs of the consumers staying in the vicinity. They offer
selected items and are not at all organized. The size of the store would not be very big
and depends on the land available to the owner. They wouldn’t offer high-end
products.

10. E Tailers

Now a days the customers have the option of shopping while sitting at their
homes. They can place their order through internet, pay with the help of debit or
credit cards and the products are delivered at their homes only. However, there are
chances that the products ordered might not reach in the same condition as they were
ordered. This kind of shopping is convenient for those who have a hectic schedule and
are reluctant to go to retail outlets. In this kind of shopping; the transportation charges
are borne by the consumer itself.

Example - EBAY, Rediff Shopping, Amazon

11. Dollar Stores

Dollar stores offer selected products at extremely low rates but here the prices
are fixed.

Example - 99 Store would offer all its merchandise at Rs 99 only. No further

bargaining is entertained. However the quality of the product is always in doubt at the
discount stores

Retail marketing mix or The 5 P’s of Marketing

Marketing mix:

Kotler defines marketing mix as follows, “The set of controllable tactical

marketing tools that the firm needs to produce the response it wants in the target
market”.

Retail marketing mix is made up of 5 points.

Product and service assortment:

Retailer must decide on three major product variables product assortment,

service mix and stores atmosphere. The retailers product assortment should match
target shoppers expectations. The customer is Interested not only in the range of
choice but also In the quality of the products available.

Retailers also must decides on a service mix to offer customers. Now a days many
retailers are offering services like home delivery giving create etc., stores atmosphere
also an another element in product and service assessment.

Price decision:

A retailers pricing policy is a crucial positioning factor and must be decided in

relation to its target market, it product and service assortment and its competition.
Follow two pricing strategy:

Most retailers would to like to charge (high) markup’s achieve high volume
(or) (low) markup’s on higher volume.

Promotion

Retailers use the normal promotion tools like advertisement, personnel selling,
sales promotion and public relations tools to reach consumer.

Advertising – newspaper, magazines, TV, Radio.

Personal selling squires careful training of sales people in how to greet

customers, meet their needs for handle their complaints sales promotions include – in
store demonstration displays, contests for visiting celebrities public relations such as –
press conference and speeches. Store openings, magazines and public service
activities.

Place

A retailers location is key to its ability to attract customer. The cost building
or leasing facilities have a major impact on the retailers profit. Most retail stores
today cluster together to increase their customer public power to give consumers of
one stop shopping. Eg: shopping center. A group of retail business planned,
developed, owned and managed as a unit.

The world’s largest retailer – WAL- MART.

If there is any change in the rate of item, the stock list is revised. The revised
lists are useful whenever items are added or dropped from the stock

People
People refer to the staff, salespeople, and those who work for the business.
People decisions are usually centered around customer service – how do you want
your employees to be perceived by customers?
 UNIT-II

BUYING

"Lark and lark" defined the marketing function Into three groups that is
functions of exchange function of physical supply and facilitating functions

DEFINITION OF BUYING

pyle defines buying comprises of all those activities in finding a suitable

source of supply, selecting the desired quantity quality, grade, style and size and
coming to an agreement with reference to the price delivery data and other conditions.

PROBLEMS OF BUYING

The main buying problems area :

1.what to buy?

It is not possible to buy goods to satisfy consumer wants without findings the
taste of the consumer. Make a list of the things that are to be bought considering what
are preferred by consumers.

2.how to buy?

Maintenance of balance inventory method must be adopted to supply goods

regularly to the consumers.

3.when to buy?

Buying in correct time will give good profit. The time to purchase the goods
to be well decided.

4.where and how to buy ?

The availability of necessary must be searched. Retailers should select the

place where he can get good quality with minimum cost.

5.Negotiation of prices and terms?

This includes the terms and conditions which the goods can be purchased. If
the negotiated of prices and terms are not favorable, the selling price will increase ad
hence competition foils.
Elements of buying or buying process or sub function of buying:

according to thoasley Clark and Clark the buying functions are:

1.planning of purchases

2.contractual (sources of supply)

3.assembling

4.negotiation

5.contractual (contract of purchase)

1. planning of purchase:

In planning of purchases there are three points they are:

a)preparation of budget

b)fixing the rate of turnover,

c)According for changes in fashion and prices

a)preparation of budget

the retailer as to prepare the purchasing budget by estimating the expected

demand.

Retailer prepare basic stock list. This contains the items of stocks to be kept
depending upon the past sales record, the stock list is prepared.

b. Firing the rate of turnover:

According to Clark and Clark, stock turnover is “the number of items the
average inventory of stock is sold during a certain period, as usually one year”.

Quicker the sale of Products, greater is the profit. The purpose is to find out
whether the product is slow or fast moving

Rate of stock turnover = cost of goods sola

Average stock

Average stock =opening stock+ closing stock

c. Accounting for changes in fashion and prices

Fashions are changing day by day. The standard of living of the people in all
countries is increasing. Clark and Clark defined fashion as a style movement. When a
style is widely accepted it remains as a fashion. Retailer must carefully observe the
style movement to be on the safe side he has to keep in touch with latest fashion.

2. Contractual (sources of supply):

3. Assembling

It is the most important of buying. It means the collection of goods from

different sources of supply and making them available at the time they are needed and
at the place they are wanted.

4. Negotiation:

Buyer invests money on the product which he buys. Hence he must get
maximum benefit his investment. Before buying a product he must know the
concessions like trade discount , cost of transport time of delivery briefly the buyers
and suppliers get together with a view to discuss the contents of contract as to price
payments, quality , quantity etc….

5. Contractual (contract of purchase):

When the terms and conditions are final between the buy the seller they in to a
contract or the buyer given the order to be execute by the seller.

Buying Methods (or) Kinds of Buying (or) Purchasing Methods

 Concentrated buying

 Diversified buying

 reciprocal buying

 hand to mouth buying

 forward buying

 contract buying

 buying by inspection

 buying by samples

 buying by description

 period buying
  buying by requirements

 open market buying

1. Concentrated buying: if the purchase are made from a single (or) from a very few
suppliers it is referred as concentrated buying. This depends upon the nature of
goods .

Merits:

 it is possible to make contact with the best supplier

 Large orders lead to lower price and quantity discount.

 Cost of handling transporting will be loss

It has get its limitation to if the suppliers fails to maintain regular supplier they
may find much trouble in maintain business

2. diversified buying (or) scattered buying:

If the purchase are made from a large number of sources then it is called
diversified buying

Merits:

 There is a flexible buying plan

 The buyer enjoys competitive price

 There is wider choice of the buyers

3. Reciprocal buying

The buyer and the seller enter in to a contract to buy and sell their products
mutually “if you buy from me, I buy from you”. For ex: a sugar factory may buy
sugar can from the members of a society and sells to the members of the same society

Merits:

 Better quality of goods at a reasonable price is made

 Purchasing and selling will increase

 If builds better connection and good will

 Demerits:

 It reduces that the choice of suppliers

 Under favorable conditions prices may be higher

 The choice of buyer is limited

4. Hand to match buying :(conservations buying)

This is a kind of buying in small lots of quantities. It makes the current needs
of the business. So it is called (current need buying).

There is no risk of loss

Merits:

 Minimum capital is invest in stocks

 There is no problem of storage

 There is minimum risk of price fluctuation

 There is quick stock flexibilities

Demerits:

 There is no price concession (or) discount

 Buying is costlier

 There is high cost of transport storage

 There is the danger of out of stock

5. Forward buying (speculative buying):

It is a big lot purchase. By expecting a higher price in the future buyer make a
lot of purchase.

They speculate a rising price and want to sell the stock at a higher price, to get
handsome profit

Merits:

 Correct speculation leads to high profit

 Price concession and discounts is possible

 It cost less in transport.

 In a boom period it is the best policy

 Demerits

 There is heavy investment in stock

 There is the danger of over stocking

 There is the risk of fall in price

 There is inelasticity in buying and selling plan

6. Contract purchasing :

In this method of purchasing goods are purchased under a contract for a long
period with fixed suppliers the suppliers supplier goods to the buyer at a fixed price
this method is good when the prices are stable

7. Buying by inspection:

The buyer buys the goods by examining the goods directly. This method is
not suitable when the buying place is for away from the buyer’s place

8. Buying by samples:

The seller sends by the sample and the buyer orders for the goods by
seeing the sample. Sometimes there are different qualities. Then they are graded.
There goods can be purchased by seeing the samples.

9. Buying by descriptions:

When samples cannot be shown, the buyer makes the purchase on the
basis of description given by the seller. The description is given by booklet

10. Period buying:

Buying the goods regularly that is weakly (or) monthly (or) yearly, etc.,.
transporting costs and other costs are incurred once in a month.

11. Buying by requirements:

Purchasing is done according to the demand. During the festivals like

Christmas, Diwali, Pongal, etc…people purchase new cloths and other goods. So they
purchase things according to the demand.

12. Open market buying :

When the price is reduced, goods are purchased in the open market, non-
perishable commodities are purchased and stocked.
KINDS (OR) CLASSES OF BUYING:
Buyers can be classified into the following groups, depending upon the
purpose of the purchase.

1. Manufactures and businessmen

2. Middle men & Consumer

1. Manufacturers: Manufacturers purchase goods for production. According to the

style of production the manufacturers buy large quantities. Manufacturers buy raw
materials, equipments, machinery, spare parts etc… they use them in their operations.
Manufacturers aim at producing the best quality products at a cheaper rate.

2. Middle men: There are two type middle men. They are wholesalers and retailers.
They buy goods for sale. Wholesalers buy large quantities they sall the product to the
manufacturers or retailers. The retailers buy small quantities and sell them to the
ultimate consumers.

When the middlemen purchase goods for sale they must consider the following
points:

 They must estimate the demand.

 They must know the sources of supply

 They must know the market news.

 They must know the seasonal variation in demand.

3. Consumers: The consumers are the persons who buy things for their own
satisfaction consumers buy small quantities of goods for their needs buying of
consumers depends upon their income.

ASSEMBLING

MEANING:

Assembling means seeking out of sources of supply, buying wisely as to

quantity, quality and variety and making communities available when and where
they are wanted

Goods are collected from big and small towns and villages at a central
place for their further movement to the factory, mill or consumers, etc… assembling
is most helpful to the produces and the consumers.
DEFINITION:

Assembling defined as “Finding the sources of supply, buying the

commodities and making them available at the time when they are needed and at the
place where they are wanted".

THE FOLLOWING TYPES OF GOOD NEED ASSEMBLING:

A number of small producers (or) Manufacturer produced goods which are

scattered over a vast area. Such types of goods need assembling.

Non-Standardized goods & goods which are of different qualities

Seasonal availability of goods

ADVANTAGES OF ASSEMBLING:-

i). Economy in the cost transportation:

When the large quantities of goods are transported from different
places to one place, it is natural that the transportation cost will be less.
ii).Help standardization and grading:
When the total products are brought together standardization and
grading can be done and it leads to better price of the products.
iii). Helps bulk sale:
Large orders can also be easily delivered to the consumer as goods are
assembled in bulk. Manufacturers can order for a bulk quantity for their production.

iv). Wider markets

Wider markets for the commodities are possible only in the assembling
centers. Wholesales and retailers can have their large and small requirement at the
assembling places and this wider market provide time and place utility to the
consumer.
v). cheaper warehousing:
Storing and warehousing becomes easy as practice are assembled in
one centers. The cost of warehousing is also less.
vi). Economic processing:
In retailing variety of products are arranged in one center. So people
come to buy what they need automatically it leads to economic processing.
vii). A stable and regular supply can be assured:
The products can be supplied regularly. Throughout the year and even during
shortage period. It assures stable supply of the products.

PROBLEMS IN ASSEMBLING:-
Even though assembling is important, it has own problems and they are;
i). Need of special skills:
There are a number of producer. There are a number of small units of
supply which are scattered over a wide area. There is difficulty in holding stock.

ii). Levels of transportation:

Assembling needs of developed means of transportation. But there is
lack of proper transportation agricultural products which are mostly seen in the
villages are to the transported.
iii). Absence of properly regulated markets:
India the properly regulated markets are less and they are also not
functioning well. this leads the producers to sell their produce in the private market, at
a low price.
iv) Lack of standardization and grading:
This leads to the danger of adulteration, which leads to many
problems.

SELLING
Meaning:-
It is the process of transferring ownership of goods from the seller to
buyers is known as selling.
“Selling is the personnel or impersonal process of assisting and or
persuading a prospective customer to buy a commodity or service and to act favorable
open an idea that has commercial significance to the seller”
Elements of selling:-
1. product planning and development:
a). Decision regarding quality
b). Decision regarding variety

c). Decision regarding diversification or simplification

 d). Decision regarding branding
c). Packaging of products
2. The contractual:
a). Limited or wider market
b). Large v/s small buyers
c). Find out the customers
d). Establishing contracts

3. Demand creation:
a). Personal selling
b). Advertising
c). Sales promotion
4. Negotiation
5. Contractual functions

KINDS OF SELLING
i). Sale by inspection:
The seller gives an opportunity to the buyer to examine the goods.
ii). Sale by sample:
The seller offers samples is certain cases.
iii). Sale by description:
The seller agrees to make certain goods as per the buyer’s description
and specification.
iv). Under cover method:
This method is followed in commodity exchanges and also in certain
un organized markets. In such places, many brokers and commission agents
participated in buying and selling.
v). By open action:
In an action sale goods are assembled at a particular place. The buyers
offer their prices individually.
vi). Tender system:
Under the tender system, the buyers are expected to quote their prices
in a sealed cover and forward it to the seller.
vii). Gentlemen’s agreement:
In the content of sale it is purely based on oral underwriting, between the seller and
buyer, of the various terms of rate.

TRANSPORTATION

Transportation is described as “ physical marketing because without the

physical supply of goods there will not be any transaction ”. Ex. Buying and selling,
transportation is the ‘key link’ between the production and other marketing functions .
Definition:-
According to Lionel Robbins, “ Transport industries which undertake nothing
more then one place to another, have constituted one of the most important activities
of men in every stage of advanced civilization”.
Classification of Transport:-
The transport can be classified into three main divisions;
I). Land transport:
Land transport is the oldest one and is very important to each and every
person. Without land transport nothing can be done. There are pathways, roadways,
railways and other ways consists of tramways and pipelines, forest areas, deserts, etc.,
i). Head load:
This form of transport is used in hilly areas and forest roads cannot bee
constructed in these areas.
ii). Pack animals:
In villages and deserts, animals like horse, donkey, buffalo, bullock, elephant,
camel, etc.,
b). Road transport:
It is the oldest system. It occupies a prominent place, necessary to everyone. A
people without roads will be a people without inter course with the outside world
without the attributes of civilization.
i). Tonga’s and tumtums:
These carriages one driven by horses. It is common in rural areas.
ii). Bullock – carts as carriers:
Bullock – carts are the most popular means off transport used for carrying
people and goods from villages or market.
c). Railway:
In land transport, railway had the monopoly before the coming of the motor
transport is the principal means of transport of the world.
Now is used for transportation of goods and passengers,
1. Cheaper
2. Suitable for built goods
3. Dependable
4. Employment opportunity
Demerits:
1. Inflexible
2. costlier
3. Inconvenient for rural and hills areas
4. Require more capital
5. Effect of centralized administration
d). Other ways:
Tramways: it is mainly used for transporting people in highly populated
cities.
Pipelines: it is the latest improved method of transport. It is a land transport,
grains, gas and liquid commodities like crude oil and other petroleum products
etc.,
II. Water transport
Water transport is cheaper when compared to other medias of transport for
high ways or railways. It was used for bulky goods and grade goods in the olden days.
It leads to the development of world trade.
Merits: Demerits:
1.Cheaper 1. Low speed
2. Bulk carriage 2. Limited areas are served
3. Safer 3. Not dependable
4. Feeder 4. Political and international
problem
5. International trade creator 5. Longer journey required
6. No congestion
7. suitable for certain area
a). Ocean transport: it is the big mode of transport b/w one country and another
1. coastal shipping: It is cheap and is a speedy form of transport.
2. over seas shipping: it encourage international trade, it is a means of
transport to and cargo on definite routes touching, fixed ports as per
scheduled
Time.
a). passenger liner
b). cargo liner
ii). Tramps:
there are ocean – going shops which have no fixed routes time table or fixed
freight rates.
iii). Oil- tankers:
Liner and tramps there are oil-tankers are huge ships. The capacity is
over 20 lakh tones of oil.
III). Air transport:
The airway transport passengers, mail and also goods. It is helpful in
times of emergency like floods, earthquake and war, air travel has gained
speed and it is quite safe.
Merits:
1. Speed
2. Regular and comfortable
3. Absence of obstacle
4. Safer
5. Suitable for perishable goods
6. Suitable for valuable goods
7. Spray of insecticides
8. Emergency remedier
9. Reduce capital investment

Demerits:
1. Costly
2. Not safer
3. Suitable to only costly goods
4. Not flexible
5. Fair weather friend
6. Limited capacity
7. Needs a high degree of training
8. Law and restriction
 UNIT-III
STORAGE AND WAREHOUSING
Storage:
It is a process of holding and preservation of goods form their production time
to consumption time.
A manufacturer needs to keep adequate stock of raw materials to ensure
smooth production. A trader has to maintain adequate stock of the products he sell to
meet the demand. Maintenance of stocks of raw material and finished products calls
for storage.
Situations require storage:
The need for storage arises fundamentally out of lace of adjustment between
the time of production and the time of consumption of goods.
Seasonal production but uniform consumption:
As such to bring an adjustment in demand and supply storage plays its role by
giving weight to the time factor
Eg: fruits, vegetables, fish, etc.,
Uniform production but seasonal consumption:
Certain types of goods are demanded only in particular season.
Eg: woolen blankets, sweaters etc, are demand only in winter season but they are
produced thought the year as such the product goods have to be stored in order to
protect them from possible deterioration.
Protection of goods:
The excess goods have to be stored from future demand and safeguarded till
they are wanted by consumers.
To maintain balance b/w demand and supply:
Surplus goods must be stored until the arrival of transport facility.
Functions of storage:
i). To preserve goods that are produced only during a particular season but are
demanded through out the year. (agri goods)
ii). To preserve goods that are produced through out the year but demanded
during a particular season (crackers, umbrellas, etc)
iii) to preserve the quality of certain goods which in the absences of proper
storage will deteriorate
iv)to enable businessmen to make speculative gain (ie) to wait and sell at a
higher price.
v)to protect goods from pests and insects
vi)to ensure smooth production and distribution.
Essentials of goods storage:
i)The storage must aim at reducing spoilage. Damage, breakage, etc.,
ii) There must be materials handling equipments
iii)storage place should be free from rapid changes of temperature.
iv)it must enable goods to b moved in and market to avoid transportation cost
v)it must enable goods to be moved in and out easily and speedily
vi)inventory level of goods must be optimum to meet two points:
regular demand
avoidance of tied up capital
Advantage of storage:
i)almost all the farm produced seasonally but are demanded through out the year so
storage becomes necessary.
ii)certain types of goods are to be preserved in the store as the inherent quality
increases.
Eg: rile, pickles. Etc.,
iii) production is always in anticipation of demand so the produced goods must be
preserved in safety and free from deterioration
iv) cold storage facilitates longer life to perishable items such as fruits, vegetables.
v)continuous sales can be effected because of the storage facility.
vi)for mass production storage is necessary to store raw materials.
viii) financial aid can be made availability
ix) it is an important aid in equalizing prices by matching the demand and supply
position.
ADVANTAGES OF WAREHOUSE:-
i)It protects the goods until they are moved to the factory (or to be used in
production) or to the market(for sale).
ii)It provides place for goods that are received in bulk.
iii)It facilitates easy sales of goods when it is located near the market.
iv)It facilitates uninterrupted sale out of stock situation is avoided
v)The warehouse receipt issued to a merchant who has stored his goods in a
public warehouse also enables him to get financial assistance. A warehouse
vi)receipt is a document of title.
vii)It helps to equalize price by matching the demand and supply position.
viii)It provides employment opportunities to many
ix)Cold storage provides longer life to certain easily perishable items like fish,
dairy products, etc.,
x)It facilitates large scale production of goods the producer need not bother
about storage.
xi)It is necessary to perform certain marketing

Warehouse:
The meaning of the word ‘ware’ is ‘article’ ware means products. A warehouse
is a place where goods are stored. It is otherwise known as a ‘go down’. It is usually
found away from the place of business of a merchant.
Functions of warehouse:
i) Warehouse is a convenient restring place for surplus goods.
ii) Warehouse assumes the responsibility to care for the goods.
iii) Warehoused goods are cost or damaged the warehouse keeper has to reimburse
the loss.
iv)Warehouse receipts help the bailers (owners of the goods) got finance from the
bankers by pledging them.
v)Warehouse keeper takes the responsibility of mixing, grading, packing etc., as
the direction of the producers
CLASSIFICATION OF WAREHOUSES:
On the basis of ownership it is classified into two types.
*)Public warehouse
*)Private warehouse

Public warehouse:
It is used by the public the operation system and rates are regulated by the
government.
Merits:
i)Public warehouses are built in modern methods which reduce all types of
losses and safeguard the goods.
ii)Facilities are open to all retail and all other charges are generally low.
iii)They have their own loading and unloading systems
iv)The users have to pay only for the period of use.
v)They employ skilled persons who give the best suggestions and better
services

ii) private warehouse:

it is owned by private and large business houses such as manufacturers, whole
sales, retailers, etc it is rarely found because of the high cost of construction.
The following are the important types of warehouses.
1.Bonded warehouse:
It plays a significant role in international trade. The bonded warehouse
offers valuable service to the importers. The importer has to enter in to a
bond along with sureties, assuring the payment of duty before removing the
goods from bonded warehouses.

Merits of bonded warehouse:

i)The importer can remit the duty in instalments
ii)The importers are allowed to do further processing on goods in bond such
as iii)blending, mixing, racking, bottling, etc.,
iv)The importer can take buyers to the bonded warehouse and the buyer can
inspect the goods, this facilities in the warehouses.
2.Duty paid warehouse:
This is situated at port town and is usually owned by dock authorities or
public authorities. An importer remits the duty of imported goods and then
stores them into the duty paid houses.
3.Special commodity warehouse:
This type of warehouse gives storage facilities only for a particular commodity
the purpose of this type of warehouse is to keep the gods of intrinsic value in original
form.
4.Refrigerated warehouse cold storage:
Perishable goods. Such as eggs, fruits. Meat ,milk, etc require cold storage
facilities during the peak season for a longer period and they are released to the
market where there is a demand.
5.General merchandise warehouse:
This is the most colon type. It provides facilities to all kinds of goods. This is
located in the distribution centers.
Difference b/w storage and warehouse:

Storage warehouse
i)It is generally located near the It is always locate near the market
factory
ii)Its aim is for personal use It’s aim for commercial use.
iii)Additional marketing functions Allied marketing functions such as
cannot be performed grading standardization mixing,
packing, etc, are performing.
iv)It gives facility for stocking raw It holds the goods a distribution
materials and finished products. center.
v)It is only a holding place. It holds the goods a distribution
center.

STANDARDIZATION AND GRADING:

Standardization:
A standard in the content of marketing. Provides the basis that enables the
consumers to make a comparison b/w goods. It help them mainly to know whether a
product conforms to the expected quality and the price paid is justified standardization
is the process by which a predetermined standard is attained.
Eg: horlicks bought at Mumbai & Calcutta is similar but it guarantees
uniformity.
Types of standards:
There are three types of standards
i) Quantity standard
ii)Standards of size and measure
iii) Quality standard.
1.quantity standard:
Standardization of weights and measure and enforcement of them are under
the responsibility of central and state government and local bodies.
2.standards of size and measurement:
The standards are determined on the basis of the size of the products
Eg: shoes, thread and garments. Etc.,
3. quality standard:
This standard is difficult to establish. This standard depends on the
prescription of consumers and users.
 GRADING
Meaning:
Grading means the division of products into classes made up units possessing
similar characteristics of size and quality. It is the task of separating the products on
the basis of predetermined norms or standards
It refers to the service of sorting out products into groups of uniform kind,
quality and much standard determines the quality and grading the process of dividing
a quantity of the same kind of goods into uniform groups according to certain
standards of size, shape, color, tenure, etc.,
Types of grading:
There are two types of grading
i)Fixed grading
ii)Variable grading
1.fixed grading:
It refers to sorting out of goods on the basis of standards (size, quality)
already set.
2.variable grading:
Variable grading refers to varying standards for goods from year to year.
Need of grading:
Generally form products are of different qualities. For example raw cotton and
jute, coal, iron, ore, milk, ghee, etc., producers want to manufacture products of
uniform quality. It is made possible only through storing out the raw materials on the
basis

Difference b/w standardization & grading:

Standardization Grading
i)It is fixed before grading It follows standardization
ii)It is a process of fixing standards It is a process of separating the goods
on the basis of quality
iii)It is a mental process It is a physical process.
iv)It is applied in agricultural as well It is applied in agricultural products
as manufactured goods
v)It is meaningless without grading It is not possible without
standardization.
vi)It is stands for standardization AGMARK Stands for grade.

Benefits of standardization and grading:

i. Simplified sales:
ii.Sales by grade need no sample or description
iii.Reduced marketing cost:
iv.The expenses to be involved in sales by inspection or sample can be
avoided sales.
v.Simplifies financing:
 vi.The prices of graded goods can be fixed easily.
vii.Satisfaction of the consumers
viii.Wider market
ix.Low transportation cost:
x.When grading is adopted inferior goods can be discarded at the
xi.producing place and there by decreases transportation cost.
xii.Consumer pay right price:

RISK BEARING
A marketer has to encounter different types of risks while performing
his activities. Marketing risks can be grouped under the following categories.

i) Risk due to natural calamities:

these include loss due to draught flood, cyclone, etc., such risk have greater
relevance in the production and marketing of agricultural commodes.
ii) Physical risk:
loss due to theft, fire accident, deterioration in quality, spoilage, etc, will come
under this category.
iii) Economic risks:
such risks are usually caused by certain economic factors like fall in demand
fall in price level,

iv) Risks due to technological development:

The market has to adopt to technological changes. He has to update his
technology. Compact discs. Photo copying in colour, contact lens, etc., are the
outcome of technological development.
v) Risks due to changes in buyer preference:
The tastes and preferences of the buyers are not static. Such changes are
unpredictable.
vi) Political risks:
such risks are caused by the decisions of the Government. The recent decision
of the Tamilnadu Government to ban sale of tobacco products and lottery tickets can
be cited.
Market information:
The marketer requires lot of information about the market. Such information
helps him in taking certain important decisions. Information is generally required in
respect of the following.
i) Substitudes available
ii) Demand
iii) Tastes and preference of the consumers.
iv) Positive and negative aspects of the products.
v) Views of the retailers and so on.
The required information must then by analused. Based on the analysed inferences
must be drawn. The entire process if collection of information, analysis and making
inferences is what is termed as marketing research the outcome of such a research
may help the marketer to take certain vital decisions as given below:
 i. Improving the quality of the product
ii. Determining the correct price
iii. Using the right promotional tool
iv. Bringing out the product in a new pack
v. Having mor retailers
vi. Offering incentives to the buyers like discounts, free gifts and so on.
 UNIT- IV

MEANING OF BUYER BEHAVIER:

The manner in which the buyer will react to the marketer ‘s strategy is what
is known as buyer behavior.
CLASSFICATION OF PRODUCT :

CONSUMER GOODS INDUSTRIAL GOODS

Products or goods are basically of two types.

(1). Consumer goods
(2). Industrial goods.

(A). Consumer goods:-

Consumer products are produced for personal consumption by households.
There are four types of consumer goods.
(1). Convenience goods:-
Goods that the consumer usually purchase frequently, immediately, and with
the minimum of effort in comparison and buying for most buyers, convenience goods
include many food items, inexpensive candy, drugs like aspirin and tooth paste,
hardware items such as light bulbs and batteries. Convenience goods have low price
an are not greatly affected by fad and fashion. A manufacturer prepares these products
to distribute it widely and rapidly.
(2) Shopping goods:-
A tangible product for which a consumer wants to compare quality, price and
perhaps style in several stores before making a purchase is known as shopping goods.
Examples of shopping are furniture, automobiles, major appliance etc. The process of
searching and comparing continues as long as consumer feels satisfaction. The
shopping goods can be divided into homogeneous and heterogeneous goods. The
homogeneous goods are similar in quality but different in price. The heterogeneous
products are different in quality and prices.
(3) Specialty goods:-
A tangible product for which a customer give preference to a strong brand and
he wants to expend substantial time and effort in locating the desire brand is called a
specialty good.
Examples of specialty goods are men’s suits, stereo sound equipment, health
foods, photograph equipment, new automobiles and certain home appliances. The
specialty goods do no involve the buyer’s making comparisons, the buyer only invest
time to reach the dealers carrying the wanted
products.
(4) Unsought goods:-
An unsought good is a new product from which a consumer is not aware.
More people are unaware of interactive movies. An electric car might be an unsought
good for most people, because they are unaware of it. Bathroom tissue made strictly
from cotton fiber would seem to be an unsought good. A firm faces a very difficult,
perhaps impossible advertising when trying to market unsought goods. Marketers
market unsought goods by placing ads on bus-stop benches or in church buildings.
(B). Industrial goods/Business goods:-
Industrial products are purchased to produce other products or for use in a
firm’s operations. Industrial products are purchased on the basis of organization’s
goals and objectives. On the basis of their uses and characteristics, industrial or
business products can be classified into seven categories.
1). Raw material:-
Raw materials are the basic materials that actually become part of the product.
They are provided form mines, forests, oceans, farms and recycled solid wastes.
2). Fabricating Materials and parts/Capital items:-
Major equipment includes large tools and machines used for production
purposes.
Examples are rather, cranes, Stamping machines.
3). Accessory Equipment:-
Accessory equipment does not become part of the final product but is used in
production or office activities. Examples include, hand tools, type writers, fractional
horse power motors etc. Accessory equipments are less expensive than capital items.
4). Component Parts:-
Component parts become a part if the physical product and either are finished
items ready for assembly or are products that enter the finished product completely
with no further change in form, as when small motors are put into vacuum cleaners
and tires are added on automobiles. Spark plugs, tires, clocks and switches are all
component parts of the automobile.
5). Process material:-
Process materials are used directly in the production of other products. Unlike
component parts, however process materials are not identifiable process materials are
further fabricated. For example, Pig iron is made into steal and Yarn is woven into
cloth.
6). Supplies:-
Supplies facilitate productions, but they do not become part of he finished
product. Paper, pencils, oils, cleaning agents and paints are examples.
7). Industrial Services:-
Industrial services include maintenance and repair services. (e.g.; window
cleaning, typewriter repair) and business advisory services. (e.g.; legal, management,
consulting, advertising, marketing research services). These services can be obtained
internally as well as externally.
 FACTOR DETERMINING BUYER BEHAVIOR
The various factor that determine buyer behavior have been explained in the
following diagram
Physical Condition

Geographic Factor
Climatic Condition

Age
Demographic Factor
Sex

Cultural Factor Customs

Habits

Social Factor Family

Media

Peer Group

Socio _Economic Income

Factor
Desired For Saving

Purchasing power.
A. GEOGRAPHIC FACTOR:
1. PHYSICAL FACTOR:
Every place has its own physical condition which determine the
buying.Behavior of the people .for example : bullock cars are used as a mode of
transport by the people in village due to lack of proper roads.
2. CLIMATE CONDITION:
People living in hill stations always experience a cold climate ,such a
climate condition forces them to use sweaters ,waistcoats ,caps etc..,
B. DEMOGRAPHIC FACTOR:
The age of the buyer determine his buying certain other by women leather ,
shoes, shaving kit etc..,
C. CULTURAL FACTOR:
1. CUSTOMS:
The buying behavior of the people will be very much influence by their
customer and practices for example: people in the north eat chapatti.
2. HABITS:
Customs and practices are inherited habits are acquired and not inherited for
example: pizzas.
D. SOCIAL FACTORS:
1. FAMILY INFLUENCY:
A person’s buying behavior is very much influence by his family.
2. MEDIA INFLUENCE:
The influence of media ,cinema in particular ,on a person’s buying behavior
cannot be ignored .

3. PEER GROUP INFLUENCE:

Peer group consists of member who all posses identical characteristics.
they all have tastes preference and so no.
E. SOCIAL ECONOMIC FACTOR:
1. INCOME:
Needless to say an increase in a person’s income may motives him to go
in for new items .he May buy sometime for himself or for his wife or children.
2. DESIRE FOR SAVING:
Sometime ,when there is an increase in an individual’s income ,he may
desire to save a portion of it.
3. PURCHASING POWER:
The purchasing power of an Individual is determined by his real income
there is a different between money income and real income.

Buyer OR Consumer Behaviour Models

1. Traditional Models
2. Contemporary Models
3. The Economic Model
4. The Learning Model
5. The Psychoanalytical Model
6. The Sociological Model.
1. Traditional Models:
The early or traditional models were developed by economists with a view to
understand economic systems. Economics helps to understand how scarce resources
are allocated among unlimited wants and needs.
2. Contemporary Models:
With the evolution of the consumer behaviour study, newer approaches were
used to understand what influences consumer behaviour. These were said to be
contemporary models.
3. Economic Model:
Under economics, it is assumed that man is a rational human being, who will
evaluate all the alternatives in terms of cost and value received and select that
product/service which gives him/her maximum satisfaction (utility). Consumers are
assumed to follow the principle of maximum utility based on the law of diminishing
marginal utility. It is assumed that with limited purchasing power, and a set of needs
and tastes, a consumer will allocate his/her expenditure over different products at
given prices so as to maximise utility.

Economic model is based on certain predictions of buying behaviour.

1. Price effect – Lesser the price of the product, more will be the quantity purchased.
2. Substitution effect – Lesser the price of the substitute product, lesser will be the
quantity of the original product bought.
3. Income effect – More the purchasing power, more will be the quantity purchased.
4. Learning Model
Unlike the economists, classical psychologists have been interested in the
formation and satisfaction of needs and tastes. They argued that living beings were
influenced by both innate needs such as the primary needs of hunger, thirst, sex,
shelter and learned needs like fear and guilt. A drive (internal stimulus) which when
directed towards a drive reducing object becomes a motive.
5. Psychoanalytical Model:
This model is based on the work of psychologists who were concerned with
personality. They were of the view that human needs and motives operated at the
conscious as well as at the subconscious levels. This theory was developed by
Sigmund Freud. According to him human behaviour (personality) is the outcome of
(a) ‘id’ – the source of all psychic energy which drives to act, (b) ‘super ego’ – the
internal representation of what is approved by the society, (c) ‘ego’ – the conscious
directing ‘id’ impulses to find gratification in a socially accepted manner. Thus, we
can say that human behaviour is directed by a complex set of deep-seated motives.
6. The Sociological Model:
According to this model the individual buyer is a part of the institution called
society. Since he is living in a society, he gets influenced by it and in turn also
influences it in its path of development. He is playing many roles as a part of various
formal and informal associations or organisations such as a family member, as an
employee of a firm, as a member of a professional forum and as an active member of
an informal cultural organisation. Such interactions leave some impressions on him
and may play a role in influencing his buying behaviour.
DEFINITION OF MARKETING SEGEMENTATION:
According to WILLIAM J.STANTON “Marketing segmentation is the
process of taking the total heterogeneous market for a product and dividing it into
several submarket or segments, each of which tends to be homogeneous in all
significant respect the respect
The above definition bring out the following point.
• The market is heterogeneous .

• It must be divided into submarkets and segment.

• Such a sub division or segmentation will make the market homogeneous

BASIS OF MARKETING SEGEMENTATION

1. UNDIFFERENTIATED MARKET:
This option is used when the nature of the product is such that it does not
allow any scope for segmentation .in such a case ,the market will adopt the total
market approach. This happens in the case of such product as sugar , kerosene ,salt
etc., where product differentiation is difficult.
2. DIFFERENTIATED MARKET:
When it is possible to bring all variable in the product ,the marker may go in
for segmentation that product offer scope for different are.
• Soap
• Toothpaste and brush
• Face cream
• Face power
• Detergent soap and power
• Shampoo, etc.
The following durable goods also offer scope for differentiation.

• TV
• Fridge
• Music system
• Washing machine etc..
Product different is also possible in the case of cycle ,motorcycle ,scooters and
cars .differentiated market has been explained below by means of a diagram.

3. CONCENTRATED MARKET:
In this case the marketer does not cater to the entire .He focuses his attention
on a particular segment only.
For example ,the manufacture of ford icon cars target only the elite group , ie
cars even for the middle class buyers .this has been explained below by means of a
diagram.
METHODS OF MARKET SEGMENTATION

1. Geographic Segmentation:
Geographic location is one of the simplest methods of segmenting the market.
People living in one region of the country have purchasing and consuming habit
which differs from those living in other regions. For example, life style products sell
very well in metro cities, e.g., Mumbai, Delhi, Kolkata and Chennai but do not sell in
small towns.
2. Demographic Segmentation:
Demographic variables such as age, occupation, education, sex and income are
commonly used for segmenting markets.
(a) Age:
Teenagers, adults, retired.
(b) Sex:
Male and female.
(c) Occupation:
Agriculture, industry, trade, students, service sector, house-holds, institutions.
(i) Industrial sector:
Large, small, tiny.
(ii) Trade:
Wholesale, retail, exporters.
(iii) Services:
Professionals and non-professionals.
(iv) Institutions:
Educational, religions, clubs.
(v) Agriculture and cottage industries.
(d) Income Level:
Above Rs. 1 lakh per annum, Rs. 50,000 to Rs. 1 lakh, Rs. 25,000 to Rs.
50,000 per annum, i.e., higher, middle and lower.
(e) Family Life-cycle:
Young single, young married no children, young married youngest child under
six, young married youngest child over six, older married with children, older married
no children under eighteen, older single, etc.
3. Psychographic Segmentation:
Under this method consumers are classified into market segments on the basis
of their psychological make-up, i.e., personality, attitude and lifestyle. According to
attitude towards life, people may be classified as traditionalists, achievers, etc.
4. Behavioristic Segmentation:
In this method consumers are classified into market segments not the basis of
their knowledge, attitude and use of actual products or product attributes.
5. Volume Segmentation:
Consumers are classified light, medium and heavy users of a product. In some
cases, 80 per cent of the product may be sold to only 20 per cent of the group.
Marketers can decide product features and advertising strategies by finding common
characteristics among heavy users.
6. Product-space Segmentation:
Here the buyers are asked to compare the existing brands according to their
perceived similarity and in relation to their ideal brands. First, the analyst infers the
latent attributes that consumers are using to perceive the brand.
7. Benefit Segmentation:
Consumer behaviour depends more on the benefit sought in product/service
than on demographic factors. Each market segment is identified by the major benefits
it is seeking. Most buyers seek as many benefits as possible.
 POSITIONING
DEFINING OF POSITIONING:
Positioning is defining as the process of establishing and maintaining a
distinctive place in the market for an organization and its individual product/services
offering.
• Positioning involves a company product service creating and occupying a
place in the mind of.

It also gives an account on the attributes (or) characteristics preferred by target

customers.
POSITIONINIG SRTATEGIES:
• Attributed positioning.
• Benefit positioning.
• Application positioning.
• User positioning.
• Competitor positioning.
• Category positioning.
• Quality positioning.
Attributed positioning.
A service provider position itself based on the attributed (or) a feature.
e.g. :Malayalam monodrama position itself as the no:1 daily in India.
Benefit positioning:
Most service provider resort to benefit positioning as the general
psychological the customer is to analyses the benefit that he derives the by using a
particular service.
User positioning:
The service is position itself as the destination for tourists seeking inner
peace.
Competition positioning:
The service is positioned by the provider against a competitor’s service
offering.
e.g.: IIPM positions itself against the IIMS its ad says bare to think beyond
the IIMS
Category positioning:
The service provider positions itself as the category leader and becomes
synonymous with the service.
e.g.: Essel world become synonymous with an entertainment park in india till
more such p ark were started across the country.

Quality positioning:
A service is positioning in the market as
TARGETING
DEFINING IF TARGETING:
Market segmentation as a natural step and its defined as the process of
estimation and comparison of the previously identified segments for selecting one (or)
more segment that reach the best result for the business.
The chosen segments should be most profitable for the company and should
also help in delivering superior value to the chosen customer base.
TARGETING STRATEGIES:
Once the segmentation exercise is complete and the company has completed the
analysis of the different segment in terms of their attractiveness.
• Single segment strategy.

• Selective specialization.

• product specialization.
 • market specialization.

• full-market coverage.

SINGLE-SEGMENTS STRATEGY:
This is also known as the concentrated approach of targeting the marketing the
market segments. the firms following this approach targets
develops a single marketing mix and eventually gains specialization in that
segments.
SELECTIVE SPCIALIZATION:
This is also known as the differentiated approach and involves targeting more
then one segment which may (or) mayn’t be related to the same product (or) services.
PRODUCT SPCIALISATION:
A company adopting this strategy offers single product (or) services to various
segments.

e.g.: A conference hall in a hotel might be used to conduct corporate meetings,

celebrate family occasions(or) arrangement student get together, depending on the
need of the segments.
MARKET SPECIALIZATION:
A company adopting this strategy aims to meet the various need of a target
segments. the target segments for this group remain the same and the company tries to
cater to the different needs of segments by offering product (or) services.
e.g.: An educational institution that offers a wide range of course in commerce
science art etc.
FULL-MARKET COVERAGE:
A company that adopts this strategy aims to offer various product (or) service
to the entire markers.
e.g.: When a hindi movie is released in the open market in a india and abroad with
english subtitles a mass marketing strategy is adopted.
 UNIT-V
MEANING OF RETAIL SALES FORECAST
Every manufacturers makes an estimation of the sales likely to take place in
the near future. Predication of future sales what is known as sales forecast, it gives
focus to the activities of a business enterprise. In the absence of sales forecast a
business has to work random. .
Methods of sales promotion:
i). jury of executive opinion method
ii). Sales force opinion method
iii). Customers expectation method
iv)/. Statistical method
i). jury of executive opinion method:
under this method , forecast are based on the opinions of the top executives of
the company. The opinions of the top executives of the company. The executives will
take into account the past performance of the business the present market conditions
and the future trend before arriving at a conclusion.

Merits
a. It is a very simple method
b. Detailed analysis is not required to arrive at a conclusion.
Demerits:
a. It is merry based on opinion rather than on facts and figures
b. Objective analysis is not done.
c. It is a mere guess work and the approach is unscientific.
d. It is a general estimation of future sales and the prediction is not done
area wise product wise and customer wise.
Sales force opinion method:
In this case the sales representatives of the business are asked to forecast sales
for their respective areas. Their views will be combined with those of the managers in
arriving at an estimate.
Merits:
a. It is a vey practical approach.
b. Each sales territory gets focus
c. The sales representatives who have made the estimation also become
responsible for attaining the target.
Demerits:
a. The success of this approach depends on the efficiency of the sales
people
b. Some salesman may be con-committal and may not give correct
information.
Customers expectation method:
Under this method the customers all directly approached and their
requirements in the near future are ascertained. This approach is particularly suitable
in the case of industrial goods where the number of buyers is limited and can be
personally contacted.
Merits:
a. First and information can be obtained,
b. This approach will certainly work in the case of industrial goods
marketing.
Demerits:
a. It may not give reliable information in the case of customer goods
marketing
b. The expectations of the buyer may change in future.
c. Such an approach is suitable only to prepare short-term plans.
Statistical method:
Trend analysis a statistical tool helps to predict future sales based on the past
sales figures of a 2sbusiness. This has been explained with the help of a small
illustration.
Following are the sales figures of a business for the past 5 years.
YEAR SALES(In lakhs)
1998 20
1999 25
2000 28
2001 32
2002 35
2013 40
2014 50

From the above information find out the trend values and also the likely sales
in the year 2003 and 2004
Merits:
a. It is an objective forecast
b. No guess work is involved in it.
c. It is simple to use.
Demerits:
a. It ignores market conditions
b. It does not make provision for uncertainities.
The Sales Forecasting Process
The sales forecasting process is defined as the series of actions taken by a
retailer to estimate the future revenues for a particular time period by considering the
past information and current forecasting objectives into account. Different firms apply
different methods of forecasting, but whatever method is chosen it must carefully
predict and take into account external and internal factors.
1.Internal Factors:
(a) Credit policies
(b) Working hours
(c) New store open policy
(d) Promotion policy
(e) Additions and deletion of merchandise category
(f) Remodeling existing stores seasonal variations
2.External Factors:
(a) Socio-cultural changes
(b) Competitors’ moves
(c) Economic policies
(d) Political system
(e) Technological advancements
(f) Climate conditions
(g) New entries

PRODUCT LIFE CYCLE

Product Life – Cycle The course of a products sales and profits over its lifetime. It
involves five distinct stages.

1. Product Development

2. Introduction

3. Growth

4. Maturity

5. Decline
 After launching the new product, management wants the product to enjoy a
long and happy life. Although it does not expect the product to sell forever, the
company wants to earn a decent profit to cover all effort and risk that went into
launching it, Management is aware that each Product will have alife cycle, although
the exact shape and length is not known in advance.

01. Product development :-

Begins when the company finds and develops a new product idea . During
product development, sales are zero and the company’s investment costs mount.

02. Introduction Stage :-

The introduction stage starts when the new products in first launched. In
which the new product is first distributed and made available for purchase.

In this stage as compared to other stages profits are negative or low because of
the low sales and high distribution and promotion expenses. Much money is needed to
attract distributors and built their inventors.

03. Growth Stage :-

The product life cycle stage in which a product’s sales start climbing quickly.

If the new product satisfied the market, it will enter a growth stage, in which
sales will start climbing quickly. The early adopters will continue to buy and later
buyers will start following their lead, especially if they hear favourable word of
mouth.
04. Maturity Stage :-

The stage in the product life cycle in which sales growth slows or levels off.

At some point, a products sales growth will slow down, and the product will
enter a maturity stage. This maturity stage normally lasts longer them the previous
stages, and it possess strong challenges to marketing management. Most products are
in the maturity stage of the life cycle. And therefore, most of marketing management
deals with the mature product.

05. Decline Stage :-

The product life cycle stage in which a product’s Sales decline the sales of
most product forms and brands eventually dip. The decline may be slow, as in the
case of oatmeal cereal. As in the case of phonographs records.

Sales may plunge to zero. Or they may drop to a low level where they
continue for many years. This is the decline stage.

Not all product follow this product life cycle. Some products are introduced
and die quickly, other stay in the mature stage for along, long time some enter the
decline stage and are then cycled back into the growth through strong promotion or
repositioning.

EXPLAIN THE PROCESS OF NEW PRODUCT DEVELOPMENT IN R M

Every company must develop new products. New product development

shapes the company’s future. Improved or replacement products must be created to

maintain or build sales. Customers want new products and competitors will do
their best to supply them. Companies that fail to develop new products are putting
themselves at great risk.

New Product Strategy:-

A new product strategy is a statement identifying the role of new product is
expected to play in achieving corporate and marketing goals.

NEW PRODUCT DEVELOPMENT PROCESS

Stages:-
A new product is best developed through a series of eight stages.
As compared to unstructured development the formal development of new
product provides benefits such as improved team work, lesser work, earlier failure
detection and most important higher success rate.
1). Idea generation:-
The new product Development process with the search for ideas. New product
ideas comes through interacting with various group of people , such as customer,
scientists, competitors , employees and top management. Companies can also find
good ideas by searching competitor’s products and services. From this they can find
out what the customers likes and dislike about competitors products. They can buy
their competitors products, take them a part and build better ones. Many companies
also encourage employees particularly those on production line to come forth with
ideas, often offering cash reward for good suggestion.
New product ideas also come from inventors, university and commercial
laboratories, advertising agencies. As the ideas start to flow, one will sprat another,
and within a short time hundred of new ideas may be brought to surface.
2) Idea screening: -
Idea screening is second stage in new product development once a large pool
of ideas has been generated by what ever their means, their number have to be pruned
to manageable level. In screening ideas the company must avoid two types of error.
Drop error: -
Occurs when the company dismisses an otherwise good idea.
Go error: - Mean adoption of poor ideas
The purpose of screening is to drop poor ideas as early as possible. Many
companies require their executives to write up new product on a standard form that
can be received by a new product committee. The write up describes product idea,
target market and competition. It makes some rough estimate of market size, product
price, development cost and rate of return.
3) Concept development and testing: -
A product idea is possible product the company might offer to the market. A
product concept is an elaborated version of ideas expressed in a meaningful consumer
terms. Throughout the stages of idea generation and screening, the developers are
only with the product idea, general concept of what product might be.
Concept development involves many questions:
i) Who will buy the new product?
ii) What is the primary benefit of new product?
iii) Under what circumstances, the new product may be used?
Concept testing:-
Concept testing involves presenting the product concept to appropriate target
consumers and getting their reactions.
4) Marketing Strategy: -
Following the successful concept test, the new product manager will develop a
preliminary marketing strategy plan for introducing the new product into market. The
plan consists of three parts.
The first part describes the target market size, structure and behavior, the
planned product positioning and sales, market share, profit goals sought in the first
few years.
The second part outlines the planned price, distribution strategy and marketing
budget for first year.
The third part of marketing strategy plan describes the long run sales and
profit goals and marketing strategy overtime.
5) Business Analysis: -
The next step in new product development is business analysis. The market
must project costs, profit and return on investment for the new product if it were
placed in market.
Business analysis is not a short process; it is a detailed realistic projection of
both maximum and minimum sales and their impact on economy or company. For
some products such as another candy bar, marketers can use existing sales data to
guide themselves. But with a product, for which sales data does not exist, only
estimation can be used.
6) Product Development: -
If the result of business analysis is favorable then a prototype of the product is
developed. In development stage, the idea is given in a concrete or tangible form. Up
to now, the product has existed only a word description, a drawing or a prototype.
This step involves a large investment. The company will determine whether the
product idea can be translated into a technically and commercially feasible product.
7) Test marketing: -
After management is satisfied with functional and psychological performance,
the product is ready to be dressed up with a brand name and packaging and put into a
market test.
Test marketing involves how large the market is and how consumers and
dealers react to handling, using and repurchasing the product.
The amount of test marketing is influenced by investment cost and risk on one
hand and time pressure and research cost on the other.
8) Commercialization: -
As the company goes ahead with commercialization, it will face its large gest
costs to date. The company will have to contract for manufacturing facility. Another
major cost is marketing
Example:-
To introduce a major new consumer packaged good into the national market,
the company may have to spend b/w $20 million and $80 million in advertising and
promotion in the first year. In the introduction of new food products, marketing
expenditures typically represents 57% of sales during the first year

MEANING OF PRODUCT LINE:

Product line refers to a group of products offered by Crompton can be brought

under a particular category.

Example:

The bulbs, tubelights, ceiling fans, etc., offered by crompton can be brought
under the category ‘electrical items’

PRODUCT LINE DECISIONS:

a. Consumer preference

b. The tactics of competitors

c. The firms cost structure

d. Changes in market demand

e. Buying habits

f. Marketing influences

g. Product influences

h. Product influences
 i. Company influences

j. Product specilisation

k. Elimination of obsolete products.

PRODUCT MIX:

Most manufacturers these days come at with not just one product but with a
number of produce consider the following example:

Manufacturer Product

Philips Audio systems, colour tv, cd players etc.,

Crompron greaves Bulbs, tubelight, ceiling fans,etc

Colgate Toothpaste, toothbrush, shaving creams

etc.,

TVS Moped, scooter, and motorcycle

Godrej Fridge, furniture, items, soaps
(different soaps) shaving creams etc.,

‘Product mix’ is the complete list of all products offered for sale by a business
unit. The American marketing association has defined product mix as the composite
of products offered for sale by a firm or business.
The product mix has three dimensions, which are:
i. Breath
ii. Depth and
iii. Consistency.
i) Breath:
The breath of the product mix refers to the variety of products of a different
nature offered by a particular manufacturer.
Eg:
Godrej offers a wide range of consumer product like locks, bureaus,
refrigerators, soaps, shaving cream, hair dye etc.,
ii) Depth:
The depth of the product mix refers to the assortment of models colours and
sizes offered within each product line.
Eg:
 Bata shoe company offers shoes and chappals in different models, colours and
sizes.
iii) Consistency:
The consistency of the product mix refers to the close relations between the
various products lines of a business.
Eg:
All the products of philips, music system, TV, CD players, bulbs, tubelights
etc., can be brought under the category electrical goods and electronic.

Multiple Choice Questions

 Retail Marketing Management
1. The word Retail is derived from the—— word.
A. Latin.
B. French.
C. English.
D. German.
2. Retailer is a person who sells the goods in a———.
A. large quantities.
B. small quantities.
C. both a & b.
D. none of these.
3. The main objective of the management is——–.
A. profitability.
B. sales growth.
C. return on investment
D. all of these.
4. In retailing there is a direct interaction with——-.
A. producer.
B. customer.
C. wholesaler.
D. all of these.
5. Retailing creates——-.
A. time utility.
B. place utility.
C. ownership utility.
D. all of these.
6. ———activities performed by the retailers.
A. assortment of offerings.
B. holding stock.
C. extending services.
D. all of these.
7. The term stakeholders which includes——-.
A. stock holders.
B. consumers.
C. suppliers.
D. all the above.
8. In a ___, a retailer sells to consumers through multiple retail formats, such as
websites, physical stores.
a. Multi-channel retailing
b. Retail management
c. Counter selling
d. Retail strategy
9. Retail business generates an enormous amount of information that would be very
valuable if one could:
a. Collect it quickly, reliably, and efficiently
b. Analyze it to make sense of the past and plan future decisions
c. Distribute it to the right people in your organization so they can act on it
d. All of the above
10. ——represents how a retailer is perceived by consumers and others.
A. image.
B. sales.
 C. profit.
D. none of these.
11. The functions of management start with—–.
A. buying.
B. planning.
C. organizing.
D. supervising.
12. “Management is what a manager does” given by.
A. Henry fayol.
B. F.W.Taylor.
C. Dinkar Pagare.
D. none of these.
13. The factor leading to the growth of retailing is —-.
A. changing consumer trends
B. technology.
C. demographics.
D. all the above.
14. Consumer buying process in retailing involves —-.
A. need recognition.
B. search for information.
C. evaluation of retailers.
D. all the above.
15. Atmosphere in retailing refers to —-.
A. the weather outside a store.
B. The ambience, music, color scent in a store.
C. assortment of products in the store.
D. display of items in a store.
16. E-tailing refers to —-.
A. sale of electronic items in a store.
B. catalog shopping.
C. music store.
D. retailing shopping using the inter.
17. A multi channel retailer sells merchandise —-.
A. over the telephone
B. through personal selling and retail store only.
C. over the internet .
D. through more than one channel.
18. Retailing is a marketing function which —-.
A. sells products to other business.
B. sells products to a company that resells them.
C. sells products to final consumers.
D. sells products for ones own use
19. The wheel of retailing explains the emergence of new retailing forms by —-.
A. retailers cycle through peaks of high cost price and troughs of low cost price.
B. whole sellers see retailing opportunity, enter retailing, then turn to wholesaling
again.
C. new retailers emerge, grow, mature and decline.
D. low margin, low price retailers enter to compete with retailers who are high
margin and high price.
20. The best way for a retailer to differentiate itself in the eyes of the consumer form
the competitions is to.
A. increase advertising of sale items.
 B. offer the lowest prices in town.
C. always be well-stocked with the basic items that customers would expect
to find in your store.
D. not sell any of the brand names the competition is selling.
21. The final stage of the consumer shopping/purchase model around which all other
stages revolves is the.
A. buy decision stage.
B. active information gathering stage.
C. purchase stage.
D. post-purchase evaluation stage.
22. Marketing mix for products consists of______.
A. 4Ps
B. 7Ps
C. 8Ps
D. 5Ps
23. Marketing mix is suggested by______.
A. Philip Kotler
B. Neil Borden
C. Peter Drucker
D. Neil Armstrong
24._____ are the key elements of promotion mix.
A. Advertising and Sales Promotion
B. Publicity and Public Relations
C. Direct Marketing and Personal Selling
D. All of the above
25. Marketing mix for services includes______.
A. 4Ps
B. 7Ps
C. 8Ps
D. 5Ps
26. _______is not a part of marketing mix.
A. Product
B. Purpose
C. Place
D. Price
27. The term marketing mix describes _______
A. a composite analysis of all environmental factors inside and outside the
firm.
B. a series of business decisions that aid in selling a product.
C. the relationship between a firm’s marketing strengths and its business
weaknesses.
D. a blending of strategic elements to satisfy specific target markets.
28. Which one of the following sets represents 4C’s of the marketing mix?
A. Customer solution, cost, convenience, communication
B. Customer, cost, convenience, comfort
C. Convenience, communication, coverage, cost
D. Cost, coverage, communication, consultancy
29. The buying process starts when the buyer recognizes a _____
A. Product or Service
B. Shop or Market
C. Need or Problem
D. Money or Status
30. If performance meets consumer expectations, the consumer is _________.
A. Satisfied
B. Dissatisfied
C. Delighted
D. Happy
31. CDM stands for ________
A. Consumer Development Model
B. Consumer Decision Mix
C. Consumer Decision Making
D. Consumer Development Matrix
32. First stage in the basic model of Consumer Decision Making is ______
A. Purchase
B. Information Search
C. Need
D. Evaluation of alternatives
33. Second stage in the Consumer Decision Making model is ______
A. Need
B. Information Search
C. Evaluation of alternatives
D. Purchase
34. The final stage in the Consumer Decision Making model is ______
A. Pre-purchase
B. Post-purchase
C. Evaluation of alternatives
D. Purchase
35. The customer or consumer is __________when actual performance exceeds the
expected performance of the product.
A. Happy
B. Satisfied
C. Disatisfied
D. Delighted
36. Parents buy toys or gifts for their children. This act is considered as _______ in
the buying process.
A. Buyer
B. Decider
C. Maintainer
D. All of the above
37. When goods and services are purchased for use in the production or assembling of
products that are sold and supplied to others is known as ______
A. Individual Buyer Behaviour
B. Business Buyer Behaviour
C. Consumer Buyer Behaviour
D. Secondary Buyer Behaviour
38. _____________is displayed by a person while buying milk.
A. Selective Buying Behaviour
B. Routinized buying behaviour
C. Extnsive buying behaviour
D. Credence buying behaviour
39. Any individual who purchases goods and services from the market for his/her end-
use is called a..................
A. customer
B. purchaser
 C. consumer
D. all these
40. . ------------ is nothing but willingness of consumers to purchase products and
services as pertheir taste, need and of course pocket.
A. consumer behaviour
B. consumer interest
C. consumer attitude
D. consumer perception
41. ________________ is one of the most basic influences on an individual’s needs,
wants, and behaviour.
A. brand
B. culture
C. product
D. price
42. ___________ develop on the basis of wealth, skills and power.
A. economical classes
B. purchasing communities
C. competitors
D. social classes
43. Two of the most important psychological factors that impact consumer
decision-making process are product _____________ and product involvement.
A. marketing
B. strategy
C. price
D. knowledge
44. Which of the following marketing functions is one the retailer could not perform?
A. selling.
B. sorting.
C. location analysis.
D. buying.
45. If a seller produces two or more products that have different features, styles,
quality, sizes, etc it is called .
A. Mass marketing.
B. Target marketing.
C. Individual marketing.
D. Product-variety marketing.
46. A form of target marketing in which companies tailor their marketing programs to
the needs and wants of narrowly defined geographic, demographic,
psychographic or benefit segments is called.
A. Macro marketing
B. Micro marketing.
C. Horizontal marketing.
D. Mass marketing.
47. What is the term used if a market is divided into distinct groups of buyers who
might require separate products or marketing mixes.
A. Market targeting.
B. Market positioning.
C. Market segmentation
D. Market coordination.
48. Market positioning is a combination of marketing actions that management takes,
to meet the needs and wants of each target market. It includes.
A. Understanding consumer perceptions.
 B. Position products in the mind of consumer.
C. Design appropriate marketing mix.
D. All of the above.
49. Which type of segmentation is commonly used for climate because of its broad
impact on consumer behavior and product needs.
A. Geographical segmentation.
B. Demographic segmentation.
C. Geo-demographic segmentation.
D. Geographic segmentation.
50. ‘Lifestyle’, ‘Westside’ and ‘Shoppers stop’ have located their departmental shops
in the areas frequently visited by upper-income people is an example of .
A. Psychographic segmentation.
B. Geo-demographic segmentation.
C. Demographic segmentation.
D. Geographic segmentation.
51. Which of the demographic variables is not used by marketers for demographic
segmentation?
A. Family life cycle.
B. Income and occupation.
C. Gender.
D. Poverty.
52. Which type of segmentation, classified consumers according to relevant needs and
buying behaviour,
regardless of their countries and culture.
A. Multi-attribute segmentation.
B. Inter-market segmentation.
C. Demographic segmentation
D. Psychographic segmentation.
53. Before a company decides to target a particular segment, which important factors
are to be examined against organizations’s objectives and resources?
A. Market size.
B. Growth rate.
C. Structural attractiveness.
D. All of the above.
54. If an organization targets to market a particular product to a variety of segments in
order to build a strong reputation in that product area is called.
A. Product specialization
B. Market specialization.
C. Selective specialization.
D. Single-segment concentration.
55. A positioning strategy should include the following strategies except.
A. Product strategy.
B. Personnel strategy.
C. Promotion strategy.
D. Advertising and sales promotion strategy.
56. Which of the following relationship strategies result into forming of a new
organization.
A. Strategic alliance.
B. Partnership.
C. Joint venture.
D. None of the above.
57. Which type of organization consists of a small workforce, relying on independent
suppliers who are located at several parts of the world with a sophisticated
linked. information system.
A. Trading company.
B. Network corporation
C. International organization.
D. Global corporation.
58. The number of product lines a company carries is called.
A. Product mix.
B. Product mix depth.
C. Product mix width.
D. Product mix length.
59. The number of variants of a product offered by a company is called.
A. Product mix length.
B. Product mix depth.
C. Product mix width.
D. Product line length.
60. If a company increases product line length by increasing its products range it is
called.
A. Line increasing.
B. Line stretching.
C. Line filling.
D. Range stretching.
61. Companies that attack other firms including the market leader in an attempt to
build market share are called.
A. Market followers
B. Market challengers.
C. Market leaders.
D. Market nichers.
62. Companies that follow the market leader’s strategy are called.
A. Market nichers.
B. Market leaders.
C. Market followers.
D. Market challengers.
63. Which one of the following is not an internal source of generating ideas for new
product development
A. Market research
B. Directed research.
C. Need-gap analysis.
D. Top management.
64. The method which generate new product ideas by analyzing the customer needs,
wants and ideas is known.
A. Directed research.
B. Customer need analysis.
C. Need gap analysis.
D. Market research.
65. Which one of the following is not an element of promotional mix?
A. Advertising.
B. Product-mix.
C. Publicity.
D. Direct marketing.
66. Which element of the promotional mix is preferable if the marketer wants to get.
immediate feedback?
A. Sales promotion.
B. Public relations.
C. Personal selling.
D. Direct marketing.
67. _____ is the development of original products, product improvements,
product modifications, and new brands through the firm’s own R&D efforts.
a. Idea generation
b. Concept testing
c. Test marketing
d. New product development
68. All of the following are different ways a firm can obtain new
products, except which one?
a. By acquiring a whole new company
b. A firm can obtain a new product through patents
c. A firm can obtain a new product by licensing someone else's new product
d. A firm can obtain a new product by using the R&D department of
other firms in the same industry.
69. All of the following are accurate descriptions of reasons why new products
fail, except which one?
a. Although the market size was correctly estimated, the product idea
itself was not good.
b. The actual product was not designed as well as it should have been.
c. The new product was priced too high.
d. The new product was advertised poorly.
70. All of the following are accurate descriptions of ways companies are anxious to
learn how to improve the odds of new-product success, except which one?
a. Find out what successful new products have in common.
b. To learn lessons from new product failures.
c. Companies have to learn to understand their own consumers.
d. Do not overly rely on product innovation when you can succeed by
copying others.
71. New-product development starts with _____.
a. idea screening
b. idea generation
c. concept development and testing
d. marketing strategy development
72. _____ is the systematic search for new-product ideas.
a. Idea generation
b. Idea screening
c. Concept development and testing
d. Marketing strategy development
73. All of the following are major internal sources of new-product ideas, except which
one?
a. Picking the brains of company executives, scientists, engineers and
salespeople is a good way to generate ideas.
b. Intrapreneurial programs that encourage employees to think and develop
new-product ideas is a good way to generate ideas.
c. Some companies employ creative approaches, including both "method and
madness" in helping them to generate new product ideas.
d. Good ideas come from watching and listening to customers.
74. Major sources of new product ideas include _____.
a. internal sources, using company R&D
b. creative approaches, using both "method and madness" approaches
c. watching and listening to customers
d. all of the above are sources of new product ideas
75. All of the following are major external sources of new-product
ideas, except which one?
a. Companies can conduct surveys or focus groups to learn about consumer
needs and wants.
b. Competitors are a good source of new-product ideas.
c. Some companies employ creative approaches, including both "method and
madness" in helping them to generate new product ideas.
d. Good ideas come from watching and listening to customers.
76. All of the following are accurate descriptions of new product ideas, except which
one?
a. New product development starts with idea generation.
b. Some companies use brainstorming exercises that expand people's minds
and generate new ideas around the client's problem.
c. At the beginning of the process, carefully scrutinize each idea and
throw far-fetched and impractical ones out the window.
d. Customers must be careful not to rely too heavily on customer input when
developing new products.
77. Some companies have installed a(n) _____ that directs the flow of new ideas to a
central point where they can be collected, reviewed, and evaluated.
a. new-product development team
b. idea management system
c. computer system
d. satellite system
78. The purpose of _____ is to generate a large number of ideas.
a. idea screening
b. idea generation
c. concept development and testing
d. marketing strategy development
79. The first idea reducing stage is _____ , which helps spot good ideas and drop
poor ones as soon as possible.
a. idea generation
b. idea screening
c. concept development and testing
d. marketing strategy development
80. A _____ is a detailed version of the idea stated in meaningful consumer terms.
a. product idea
b. product concept
c. product image
d. test market
81. A _____ is the way consumers perceive an actual or potential product.
a. product idea
b. product concept
c. product image
d. test market
82. An attractive idea must be developed into a _____.
a. product idea
b. product concept
 c. product image
d. test market
83. _____ begins when the company finds and develops a new-product idea. During
product development, sales are zero and the company's investment costs
mount.
a. Introduction
b. Growth
c. Maturity
d. Product development
84. _____ is a period of slow sales growth as the product is introduced into the
market. Profits are non-existent in this stage because of the heavy expenses of
product introduction.
a. Growth
b. Product development
c. Maturity
d. Introduction
85. _____ is a period of market acceptance and increasing profits.
a. Product development
b. Maturity
c. Growth
d. Introduction
86. _____ is the course of a product's sales and profits over its lifetime, involving five
distinct stages: product development, introduction, growth, maturity, and
decline.
a. Product life cycle
b. Maturity
c. Growth
d. Decline
87. What does the term PLC stands for?
(1) Product life cycle
(2) Production life cycle
(3) Product long cycle
(4) Production long cycle
(5) None of these
88. PLC in marketing represents two main challenges. 1st an organization must be
good at developing new product to replace old ones and 2nd it must be good at
_________________.
(1) Functioning
(2) Marketing
(3) Selling
(4) Adapting
(5) Testing
89. Which of the following is stage of Product Life Cycle?
(1) Introduction Stage
(2) Growth stage
(3) Decline stage
(4) Mature stage
(5) All of the above
90. When a new product arrives in the market with higher quality, higher value and
new features better than its competitors. Such products are known as
(1) Superior products
(2) Develop superior products
 (3) Unique superior products
(4) New products
(5) None of these
91. Which thing will make the project more attractive while evaluating a new
development project using net present value analysis?
(1) Market penetration
(2) Sequential product development
(3) Idea generation
(4) Continuous improvements
(5) Idea screening
92. Increased competition leads to price decrease, increasing public awareness, sales
volume increase significantly are the characteristics of ______________ in
PLC.
(1) Mature stage
(2) Decline stage
(3) Growth stage
(4) Market introduction stage
(5) None of these.