MARKETING MANAGEMENT – 2 MARKS

1. Marketing

marketing as an organisational function and set of processes for creating, communicating and delivering value
to customers and for managing customer relationships in ways that benefit the organisation and its
stakeholders

2. Sales

A transaction that includes an exchange of services or goods for a certain amount of money is known
as a sale.
In other words, any activity that involves transferring the ownership of a good or commodity to the
buyer in exchange for a monetary price is known as a sale.

3. Media

The term media, which is the plural of medium, refers to the communication channels through which we
disseminate news, music, movies, education, promotional messages and other data. It includes physical and
online newspapers and magazines, television, radio, billboards, telephone, the Internet, fax and billboards.

4. Consumers

Consumers are people or organizations that purchase products or services. The term also refers to hiring
goods and services. They are humans or other economic entities that use a good or service. Furthermore, they
do not sell on that item that they bought

They are the end users in the distribution chain of goods and services. In fact, sometimes the consumer might
not be the buyer.

5. Price

Price is the amount that consumers will be willing to pay for a product. Marketers must link the price to the
product's real and perceived value, while also considering supply costs, seasonal discounts, competitors'
prices, and retail markup.

6. Delphi Technique

The Delphi method is a process used to arrive at a group opinion or decision by surveying a panel of experts

Experts respond to several rounds of questionnaires, and the responses are aggregated and shared with the
group after each round

7. Reference

In marketing, "frame of reference" is how a new product, service, or concept is seen by the target market.
(Morelo, n.d.). This creates a specific picture or idea about or surrounding a product, service, or concept being
marketed.

8. Growth stage

The growth stage is typically characterized by a strong growth in sales and profits, because the company can
start to benefit from economies of scale in production, the profit margins, as well as the overall amount of
profit, will increase. This makes it possible for businesses to invest more money in the promotional activity to
maximize the potential of this growth stage.

9. FMCG

Fast-moving consumer goods are products that sell quickly at relatively low cost. These goods are also
called consumer packaged goods.
FMCGs have a short shelf life because of high consumer demand (e.g., soft drinks and confections) or because
they are perishable (e.g., meat, dairy products, and baked goods). These goods are purchased frequently, are
consumed rapidly, are priced low, and are sold in large quantities. They also have a high turnover when
they're on the shelf at the store.

10. Labeling

Labelling is another significant means of product identification like branding and packaging. Labelling is the act
of attaching or tagging labels. A label can be anything – a piece of paper, printed statement, imprinted metal,
leather which is either a part of a package or attached to it, indicating a value of contents of a price of product
name and place of producers or such useful information to be beneficial to the user. Thus, a label is an
informative tag, wrapper or seal attached to a product or product’s package. Labeling gives necessary
information to the customers about the products

11. Coupon

In marketing, a coupon is a ticket or document that can be redeemed for a financial discount or rebate when
purchasing a product.

Customarily, coupons are issued by manufacturers of consumer packaged goods[1] or by retailers, to be used in
retail stores as a part of sales promotions. They are often widely distributed through mail, coupon envelopes,
magazines, newspapers, the Internet (social media, email newsletter), directly from the retailer, and mobile
devices such as cell phones.

12. E-Marketing

Internet marketing, or online marketing, refers to advertising and marketing efforts that use the web and email
to drive direct sales via electronic commerce, in addition to sales leads from websites or emails.

Electronic marketing refers to the application of marketing principles and techniques via electronic media and
more specifically the internet. The terms e-marketing, internet marketing and online marketing, are frequently
interchanged, and can often be considered synonymous. There are seven different types of online Marketing
or e-marketing.

13. Market

The market actually refers to a set up where potential buyers and sellers can meet to exchange goods or services. It
is basically a medium that facilitates these transactions in an economy. It allows for the exchange of goods, services,
information under the protection of the law and generally in exchange for consideration.

14. Customer

A customer is an individual or business that purchases another company's goods or services. Customers are
important because they drive revenues; without them, businesses cannot continue to exist. All businesses
compete with other companies to attract customers, either by aggressively advertising their products, by
lowering prices to expand their customer bases, or by developing unique products and experiences that
customers love

15. Trend analysis

Trend analysis is a method to analyze the statistical data and recorded market behavior over a defined period
of time and generate valuable insights using this data for strategizing and forecasting future business plans. It
helps to identify the dominant traits of the market and the consumers associated with it.

16. Buying situation

A buying situation relates to the circumstances surrounding a purchase that can be defined by the quality of
information and experience that the buyer has concerning the products and vendors available, as well as the
effort it will take to make the purchase decision.(web)
Pg : 96

17. Portfolio management

Product portfolio management is the process of looking at every product a company offers to see how well
it meets company goals. It’s also about envisioning future product strategies for company growth, cost
savings, or other goals.

Strong product portfolio management involves ongoing analysis of the performance of current products as
well as market trends for the development of future products

18. Industrial product

Industrial products are used as the inputs by manufacturing firms for further processes on the products, or
manufacturing other products. Some products are both industrial as well as consumer products. Machinery,
components, certain chemicals, supplies and services, etc., are some industrial products.

19. Sales promotion

According to Philip Kotler, “Promotion includes all the activities the company undertakes to communicate and
promote its products to the target market.

” According to W.J.Stanton, “Promotion is the element in an organization’s marketing mix that serves to
inform, persuade and remind the market of the organization or its products.

” According to Mc. Carthy, “Promotion is concerned with any method that communicates to the target market
about the right product to be sold in the right place at the right price. Promotion encompasses sales
promotion, advertising, and personal selling.”

20. Middlemen

A middleman, also known as an intermediary, helps facilitate the exchange of goods between consumers and
producers of products, such as manufacturers

Examples of middlemen include wholesalers, retailers, agents and brokers. Wholesalers and agents are
closer to the producers. Wholesalers buy goods in bulk and sell them to the retailers in large quantities.
Retailers and brokers acquire the goods from the wholesalers and sell them in small quantities to the
consumers.

21. Want

Want: Desire for specific satisfier of need. eg.- Indians needs food – wants paneer tikka/ tandoori chicken.
Americans needs food- wants hamburger/ French fries. Eg. Car (say, Mercedes) but able to buy only Maruti

The desire for products or services that are not necessary, but which consumer wish for. Humans have
unlimited needs, and to satisfy them, people desire different things, like products or services and ways of
doing things. Needs are something essential for your survival. Whereas wants are intangible and volatile –
something you may desire but don’t need

22. Need

Need: It is state of deprivation of some basic satisfaction. eg.- food, clothing, safety, shelter. Eg. Transportation

“Needs” are the basic human requirements that are needed to survive. These necessities include shelter,
clothes, food and water

23. Demand

Demand: Want for a specific product backed up by ability and willingness to buy. Eg. Demand is for Maruti.
Market demand describes the demand for a given product and who wants to purchase it. This is determined by
how willing consumers are to spend a certain price on a particular good or service. As market demand
increases, so does price

When a customer is willing and able to buy what they need or want, it becomes a demand for the
organization. Want becomes demand when supported by purchasing power.

24. Strategic planning

Strategic planning is a process in which an organization's leaders define their vision for the future and identify
their organization's goals and objectives. The process includes establishing the sequence in which those goals
should be realized so that the organization can reach its stated vision.(web)

. A company may have more than one strategy in place at any given time, using various marketing platforms —
including networking, digital media and traditional print advertising. Strategic Market Planning is an ongoing
process through which the company creates marketing strategies and plans its implementations in the target
market. The process taken into account the current position of the company, helps in identifying the
promotional opportunities and then evaluating these opportunities. Target market is identified through
comprehensive research.

25. Sales Forecasting

Sales forecasting is the process of estimating future sales. Accurate sales forecasts enable companies to make
informed business decisions and predict short-term and long-term performance.

the sales forecast indicates as to how much of a particular product is likely to be sold in a specified future
period in a specified market at specified price

26. Prospective buyer

In a general sense, a prospective buyer is any potential buying party that could be a fit for the purchase of a
company that is being marketed in a sell-side transaction. In the world of M&A, a prospective buyer is one of
the buyers that gets put on a prospective buying list.(look for better answer )

27. Saturation stage

During the product saturation stage, competitors have begun to take a portion of the market and products will
experience neither growth nor decline in sales. Typically, this is the point when most consumers are using a
product, but there are many competing companies.

28. Non durable goods

Nondurable goods are any consumer goods in an economy that are either consumed in one use or used up
over a short period of time (considered by the United States Bureau of Economic Analysis to be within three
years) and must be bought again in successive purchases. Nondurable goods are also called soft goods or
consumable goods. Some examples of nondurable goods include

 Food
 Laundry detergent
 Dish soap
 Light bulbs
 Paper products like paper plates
 Clothing
 29. Discount

Discount Pricing : It involves reduction of price from MRP for performing certain activities. It includes cash
discounts, quantity discounts and seasonal discounts

Discount pricing is a type of promotional pricing strategy where the original price for a product or service is
reduced with the aim of increasing traffic, moving inventory, and driving sales.

People are drawn to lower prices because consumers love feeling as if they are scoring a good deal.(web)

30. What is Social Media Marketing?

Social media marketing (SMM) refers to techniques that target social networks and applications to spread
brand awareness or promote particular products. Social media marketing campaigns usually center on:

 Establishing a social media presence on major platforms

 Creating shareable content and advertorials
 Cultivating customer feedback throughout the campaign through surveys and contests

Social media marketing is perceived as a more targeted type of advertising and is therefore believed to be very
effective in creating brand awareness. Social media presence is a necessity for many customer-driven
enterprises as it gives the impression of a more immediate connection between the customer and the seller.

31. Define Marketing Mix./ 4Ps

There are four marketing mix variables that are associated with a product. s. These are often known as the
“Four P’s” in marketing. All marketing mix variables are controllable, internal factors. These include

Product - This variable described all factors relating to the actual product visible to the consumer

Price - The price variable includes not only the list price, but all other pricing factors associated with a product.

Place - Place deals with all distribution and location aspects of a product.

Promotion - Promotion is the efforts by a company to make publicize a product and make the consumer aware
of it.

32. Give example for Habitual Buying Behaviour.

Habitual buying is the buying behavior of customers where they are making repeat purchases number of times
of an already known brand without the process of high involvement and decisioning. The product is perceived
as commodity and doesn’t provide much difference from its rivals

Example

One of the simplest example of habitual buying is purchase of goods of daily needs. The purchase of milk or
bread in the nearby store is the example of habitual buying behavior.

Despite several brands of beverages or cola items, people develop preferences of a few brands or flavours.
This is another example of habitual buying

33. Define Branding

Branding can be defined as name, term, sign, symbol or design or a combination of them which is intended to
identify and distinguish the product of one firm with other. It is the means that differentiates products of one
producer with competitors.

According to American Association, “A brand is a name, term, symbol or design or combination of them which
is intended to identify the goods or service of one seller or group of sellers and to differentiate them from
those of.

34. Give examples for Penetration Pricing.

The product is introduced at low prices initially and the price is increased subsequently with increase in
demand and market share. Example : Streaming Companies ,Airline Companies , Online Education programe ,
Cellphone suppliers

35. Advertising

Advertising is the major components of promotion of products.It is an impersonal mass communication that
the sponsor has paid for and in which the sponsor is clearly identified. The most familiar forms of ads are
found in the broadcast (TV and radio) and print (newspapers and magazines) media.

36. What is Personal Selling?

: Personal selling is the direct presentation of a product to a potential customer by a representative of the
organization for selling it. Personal selling takes place face to face or over the phone, and it may be directed to
a middleman or a final consumer. It plays the vital role in the promotion of products.

37. Define Publicity

Publicity is a special form of public relations that involves news stories about an organization or its products. It
involves personal or impersonal message that reaches mass audiences through the media.

Publicity is putting your business in front of the public and media outlets so you can showcase your products,
services and company news. The goal is to attract your target audience members and make them aware of
your company so they will want to engage in business with you.

38. Examine the need for Consumer Protection

a. Dangerous and inferior merchandise

b. False or misleading advertisements

c. Unfair trade practices

d. Monopolistic and restrictive trade

e. Adulteration
f. Denied after sale service

g. Duplicate or sub-standard goods due to exploitation of consumers by businessmen.

39. What is E-Mail Marketing?

E-mail marketing is the act of sending a commercial message, typically to a group of people, using email. In its
broadest sense, every email sent to a potential or current customer could be considered email marketing. It
usually involves using email to send advertisements, request business, or solicit sales or donations, and is
meant to build loyalty, trust, or brand awareness.

“E-mail marketing is the targeting of consumers through electronic mail (e-mail). Often associated with data
mining, email marketing can be used to impact consumers in a variety of ways. In general, email marketing is a
more evolved, digital form of traditional direct mail marketing”. Email marketing is also known as direct email
marketing.

40. Define Marketing Management

marketing management is the process of planning, executing, and tracking the marketing strategy of an
organization. This includes the marketing plan, campaigns and tactics used to create and meet the demand of
target customers to drive profitability

41. Name any two companies using Selling Concept

The selling concept theorizes that consumers won't buy enough of a business's products or services without
a massive promotional campaign and sales push behind them

Examples of companies that use the selling concept are life insurance and timeshare companies.

42. What is Marketing Research?

According to American Marketing Association (AMA), Marketing Research is “The systematic gathering,
recording, and analyzing of data about problems relating to the marketing of goods and services.”

According to Richard D. Crisp, Marketing Research is “The systematic, objective and exhaustive search for and
study of the facts relevant to any problem in the field of marketing.”

According to Philip Kotler, “Marketing research is systematic problem analysis, model building and fact-finding
for the purpose of improved decision-king and control in the marketing of goods and services.”

Market research, also known as "marketing research," is the process of determining the viability of a new
service or product through research conducted directly with potential customers. Market research allows a
company to discover the target market and get opinions and other feedback from consumers about their
interest in the product or service(web)

43. Define Retailing

Retailing is a distribution process, in which all the activities involved in selling the merchandise directly to the
final consumer (i.e. the one who intends to use the product) are included. It encompasses sale of goods and
services from a point of purchase to the end user, who is going to use that product.

44. What is Market Segmentation?

Market segmentation is the act of dividing a market into distinct groups of buyers who might merit separate
products and/or marketing strategy

market segments are grouping of buyers who have common characteristics as buyers of a product or service,
so that their needs and desires can be met better way

45. Differentiate targeting and positioning

Targeted marketing is the process of identifying customers and promoting products and services via mediums
that are likely to reach those potential customers. Targeted marketing classifies potential customers, discovers
their preferred content delivery mode and digital hangouts and then builds a marketing strategy aimed at that
specific group. Targeted marketing is generally limited in scope but is often more productive than broader
types of marketing because it is designed around specific customer preferences.

“Positioning is the act of designing the company’s offer and image so that it occupies a distinct and valued
place in the target customers’ mind”.

A product’s position is the way the product is defined by consumers on important attributes, the place the
product occupies in consumer’s minds relative to competing products. For example, Lux is positioned as
beauty soap of cine stars. lifeboy is positioned as an anti septic soap, Vicks as an ointment for cold etc.

46. What is Packaging

Packaging is the activity of designing and producing the container or wrapper for the product. It is an
important and effective sales tool for encouraging the consumers for buying. It is powerful medium for sales
promotion.

According to W.J.Stanton, “Packaging may be defined as the general group of activities in product planning
which helps in value designing and producing the container or wrapper for a product.”

47. Define Consumerism.

“Consumerism social movement seeking to augment the rights and powers of buyers in relation to sellers.”

“Consumerism is a social force within the environment designed to aid and protect the consumers by exerting
legal, moral and economic pressure on business.”

Consumerism is a protest of consumers against unfair business practices and business industries. It aims to
eliminate those unfair marketing practices e.g. misbranding, spurious products, unsafe products, adulteration,
fictitious pricing, planned obsolescence, deceptive packaging, false and misleading advertisements, defective
warranties, hoarding, profiteering, black-marketing, short weights and measures etc

48. Write a brief note on Sales Stagnation.

Stagnation occurs within an economy when total output is either declining, flat, or growing slowly. Persistent
unemployment, flat job growth, no wage increases, and an absence of stock market booms or highs are
evidence of stagnation

49. Mention any two Consumer Responsibilities.

 Do not buy in hurry or blindly
 Beware of false advertisements.
 Do not compromise on quality
 Buy only goods with eco mark (ISI, AGMARK)
 Always ask for receipt and guarantee card.
 Approach immediately in case of complaint.