II SEMESTER B.

Com DEGREE EXAM

QUESTION PAPER AND ANSWER KEY APRIL 2020

BCM2C02- MARKETING MANAGEMENT

Time: 2.5 Hours Maximum: 80 Marks

PART A
Answer all questions. Each question carries 2 marks (Maximum 25 marks)

1. What is Rural Marketing in India?

Rural Marketing is a function that manages all activities in assessing, stimulating and
converting purchasing power of rural consumers into an effective for goods and
services and moving these to the rural people.Rural marketing in India refers to the
process of promoting and selling products and services in rural areas of the country.
India is primarily an agrarian economy with a significant portion of its population
residing in rural areas. As a result, rural marketing is a crucial aspect of the overall
marketing strategy for many businesses.
2. What are the 4 A’s of rural marketing?
The 4As of rural marketing are:-
Awareness: Creating awareness is the first step in rural marketing. Many rural
consumers may not be familiar with new products or services, especially those that
are technologically advanced or unfamiliar to them. Marketers need to invest in
awareness-building campaigns that educate rural consumers about the existence,
benefits, and usage of their products or services. This may involve advertising through
various media, including television, radio, newspapers, and even local community
events.
Availability: Ensuring the availability of products and services in rural areas is
crucial. Rural markets often lack the same level of infrastructure and distribution
networks as urban areas. Marketers need to establish a robust distribution system to
make their products easily accessible to rural consumers. This may involve setting up
rural retail outlets, working with local distributors, or utilizing innovative distribution
channels.
Affordability: Affordability is a critical factor in rural marketing. Rural consumers
generally have lower income levels compared to urban consumers. Marketers need to
price their products and services competitively to cater to the purchasing power of
rural consumers. They may also consider offering financing options or smaller
packaging sizes to make products more affordable.
Acceptability: Acceptability refers to tailoring products and marketing strategies to
align with the cultural, social, and behavioral patterns of rural consumers. Rural
markets often have distinct preferences and needs, and products may need to be
adapted to suit these preferences. This involves understanding local customs,
traditions, and languages to create marketing messages that resonate with rural
consumers.
3. What is the role of service marketing?

Service marketing is the process of identifying, pricing, promoting and providing right
services in the right time to the customers with a view to satisfy their requirements and
objectives of service provider. Service marketing is essential for businesses offering
services as it helps create value for customers, drive revenue, build brand equity, and
adapt to the ever-changing market landscape. It's a strategic function that requires a
deep understanding of customer needs, effective communication, and a commitment to
delivering exceptional service experiences.
4. What is marketing concept philosophy?
The marketing concept philosophy is a fundamental approach to business and
marketing that centers around the needs and wants of customers. It is a customer-centric
philosophy that guides a company's strategic decisions and actions. The marketing
concept philosophy is based on the belief that a company's success is directly linked to
its ability to satisfy customer needs and wants effectively and efficiently.
The key principles are customer focus, Integrated marketing, customer satisfaction,
Market research, Product development and innivation, customer engagement and
relationship, ethical and social responsibility etc. The marketing concept philosophy
places the customer at the center of a company's strategic decisions and actions. It
emphasizes the importance of understanding, satisfying, and building strong
relationships with customers to achieve long-term success and profitability. This
customer-centric approach has become a cornerstone of modern marketing theory and
practice.
5. What are product levels in marketing?
In marketing, products are often viewed as having multiple levels, each representing a
different aspect or dimension of the product. These product levels are used to
understand and manage a product's value proposition, features, and benefits. The
concept of product levels was developed by marketing expert Philip Kotler. There are
typically five product levels, which are often referred to as the "Product Levels
Hierarchy." These levels are as follows:

Core Product (or Core Benefit):

This is the fundamental reason why a customer buys a product. It represents the
core benefit or problem-solving aspect that the product provides. For example,
when a customer buys a smartphone, the core product is the ability to
communicate and stay connected with others.
Actual Product:
The actual product represents the tangible features and attributes of the product
that deliver the core benefit. It includes aspects such as design, style, quality,
packaging, brand name, and functionality. For a smartphone, the actual product
includes the physical device, screen size, camera quality, operating system, and
other features.
Augmented Product:
The augmented product level includes additional elements or services that
enhance the core product's value and customer experience. These may include
warranties, customer support, after-sales services, installation, or product
 customization. For example, when buying a smartphone, the augmented product
may include a warranty, technical support, and access to software updates.
Expected Product:
The expected product represents the set of features and qualities that customers
expect from a product within a particular category or industry. It includes the
minimum standards and performance levels that customers consider acceptable.
Meeting these expectations is crucial to maintaining customer satisfaction and
competitiveness. For a smartphone, the expected product may include features
like a touchscreen, long battery life, and access to popular apps.
Potential Product (or Total Product):
The potential product level encompasses all the possible features, improvements, and
innovations that a company could add to the product in the future to stay competitive
and meet evolving customer needs. It represents the product's future potential and
adaptability. Companies continuously strive to develop and innovate at this level to
differentiate their offerings and meet changing market demands.

6. Why warranties are important to customers?

Warranties are important to customers for several reasons, as they provide a sense of
security and confidence when making a purchase. Warranties are important to
customers because they provide a safety net, increase confidence in the product's
quality, offer financial protection, and contribute to a positive overall buying experience.
Customers view warranties as a way to mitigate risk and ensure that their investment in
a product is a wise one. As such, warranties can influence purchasing decisions and
customer loyalty.
7. What is pricing policy?
It provides guidelines within which pricing strategy is formulated and implemented.
The pricing objectives like maximisation of profit, sales, targeted rate of return, survival,
meeting competition, survival etc. are collectively known as pricing policies. The
various pricing policies are cost based pricing policy, demand based policy and
competition based policy.
8. What do you mean by desired value?
Desired value, in a marketing and customer satisfaction context, refers to the level of
value or benefit that a customer expects or wishes to receive from a product, service, or
brand. It represents the ideal or preferred outcome that a customer anticipates when
making a purchase decision. Desired value is a subjective concept and can vary from
one customer to another based on their individual needs, preferences, and expectations.
9. What do you mean by reverse logistics?
Reverse logistics refers to the process of moving products, equipment, and materials
from their final destination (usually the customer or end-user) back to the manufacturer,
retailer, or a designated location for the purpose of return, repair, recycling, re-
manufacturing, or disposal. In contrast to traditional logistics, which focuses on the
flow of products from manufacturers to consumers, reverse logistics deals with the flow
of products in the opposite direction. Reverse logistics is an essential part of supply
chain management, as it involves the efficient handling of products and materials that
are no longer in the primary flow of goods. Effective reverse logistics processes can
minimize waste, reduce costs, improve sustainability, and enhance customer
satisfaction while ensuring legal and environmental compliance.
10. What is the role of competition in marketing?
Competition plays a significant role in marketing and has a profound impact on
businesses and their marketing strategies.Competition is a driving force in marketing
that shapes how businesses operate, innovate, and interact with customers. It promotes
efficiency, differentiation, and customer-focused strategies while providing consumers
with choices and driving overall market progress. Companies that understand and
respond effectively to competitive pressures are better positioned for success in their
respective industries.
11. What are the major elements of direct marketing?
Direct marketing is a marketing strategy that involves communicating directly with
individual consumers or target audiences to promote products or services. It aims to
establish a one-to-one relationship with potential customers. Several major elements
are involved in direct marketing:

Target Audience: Identifying the right target audience is crucial in direct marketing.
This involves segmenting the market and selecting specific groups of consumers who
are most likely to be interested in the product or service being promoted.

Database Management: Maintaining a well-organized and up-to-date customer

database is essential. The database includes information such as customer names,
contact details, purchase history, preferences, and other relevant data. This information
helps in personalizing marketing efforts.
Offer and Creative: Developing a compelling offer and creative content is a key
element of direct marketing. This includes crafting persuasive messages, designing eye-
catching visuals, and creating an attractive value proposition that motivates recipients
to take action.
Media Selection: Choosing the right media for reaching the target audience is
important. Direct marketing can be conducted through various channels, including
direct mail, email, telemarketing, social media, SMS, and more. The selection of media
depends on the nature of the product, the audience's preferences, and the budget.
Personalization: Personalization is a hallmark of effective direct marketing. Tailoring
messages and offers to individual recipients based on their preferences, behavior, and
demographics can significantly improve response rates.
Timing: Timing plays a role in the success of direct marketing campaigns. Sending
messages or offers at the right time, such as during a seasonal promotion or based on
individual customer behavior, can increase the likelihood of a positive response.
Compliance: Adhering to legal and ethical guidelines is crucial in direct marketing.
Businesses must comply with regulations such as the CAN-SPAM Act (for email
marketing) and telemarketing rules to ensure they are not engaging in spammy or
intrusive practices.
Follow-Up and Customer Relationship Management (CRM): Direct marketing
doesn't end with the initial contact. Effective follow-up, lead nurturing, and ongoing
customer relationship management are essential to building long-term customer loyalty
and maximizing the lifetime value of customers.
Measurement and Evaluation: Direct marketing campaigns should be measured and
evaluated to determine their effectiveness. Metrics like response rates, conversion rates,
cost per acquisition, and ROI are used to assess the success of the campaign and make
necessary adjustments for future efforts.
12. What is Personal Selling and Sales Promotion?
Personal Selling is the oral presentation in a conversation with one or more prospective
purchasers for the purpose of making sales. It is the process of contacting the
prospective buyers personally and persuading them to buy the products.
Sales Promotion is a short term incentive to encourage purchase or sale of a product/
service.It is the marketing activity that stimulates consumer purchase and dealer
effectiveness such as display show, exhibitions, demonstrations etc.
13. Define word of mouth marketing?
It is a strategy of encouraging customer recommendations and conversation.
Word of mouth marketing (WOMM), often referred to simply as "word of mouth," is a
marketing strategy that relies on customers and individuals to promote a product,
service, or brand through informal, oral communication. In WOMM, satisfied
customers become brand advocates who voluntarily share their positive experiences
and recommendations with others, such as friends, family members, colleagues, and
acquaintances. This word-of-mouth communication can happen both offline and online,
including in-person conversations, social media, reviews, and recommendations.
14. What are the advantages of E- Marketing?
E-marketing, also known as digital marketing or online marketing, offers numerous
advantages for businesses and organizations. It leverages digital channels and
technology to reach and engage with a target audience. Here are some of the key
advantages of e-marketing:

Global Reach: E-marketing allows businesses to reach a global audience, breaking

down geographical barriers. With the internet, companies can expand their reach
beyond local markets to national and international markets.
Cost-Effective: Digital marketing can be more cost-effective than traditional
advertising methods such as print, TV, or radio. Many online marketing channels, like
social media and email marketing, have lower costs associated with ad creation and
distribution.
Targeted Advertising: E-marketing offers precise targeting capabilities. Businesses
can tailor their messages and content to specific demographics, interests, behaviors,
and location. This precision helps maximize the effectiveness of marketing campaigns
and reduces ad spend wastage.
Data Analytics and Insights: E-marketing provides access to data analytics tools that
allow businesses to track and measure the performance of their campaigns in real
time. Marketers can analyze data to understand customer behavior, preferences, and
conversion rates, enabling data-driven decision-making.
Personalization: Personalization is easier to achieve in e-marketing. Marketers can
use data to personalize content, offers, and recommendations for individual
customers, enhancing the customer experience and engagement.
Immediate Feedback: Digital marketing allows for immediate feedback and
interaction with customers. Businesses can receive comments, questions, and
feedback in real time through social media, chat, or email, allowing for quick
responses and issue resolution.
24/7 Accessibility: E-marketing campaigns and digital assets (websites, social media
profiles, etc.) are accessible 24/7, providing customers with information and
engagement opportunities at any time. This convenience is especially valuable for
businesses with global customers in different time zones
Flexibility and Adaptability: E-marketing campaigns can be easily adjusted and
adapted in response to changing market conditions, customer preferences, or
emerging trends. This flexibility allows for rapid iterations and optimization of
marketing strategies.
15. What are the main activities of e-commerce?
E-commerce, short for electronic commerce, encompasses a wide range of online
activities and transactions related to buying, selling, and exchanging goods and services
over the internet. These activities can be categorized into several main areas:

Online Retail (B2C):

Online Retailers: Operating digital storefronts to sell products directly to
consumers.
Online Marketplaces: Providing platforms for multiple sellers to list and sell
products to consumers.
Online Wholesale (B2B):
B2B E-commerce Platforms: Facilitating bulk purchasing and transactions between
businesses.
Supply Chain and Procurement Platforms: Streamlining the procurement process
for businesses.
Online Auctions and Marketplaces:
Auction Websites: Allowing buyers to bid on products, with the highest bidder
winning the item.
Classified Ad Websites: Connecting buyers and sellers for various products and
services.
Digital Products and Services:
Digital Downloads: Selling and delivering digital products such as e-books,
software, music, and videos.
Subscription Services: Offering access to content, software, or services on a
recurring basis.
Online Payment and Financial Services:
Payment Gateways: Facilitating online payments and processing transactions.
Digital Wallets: Providing secure storage of payment information for online
purchases.
Peer-to-Peer Payment Services: Enabling individuals to send and receive money
online.
Online Market Research and Analytics:
Market Research Platforms: Conducting market research and collecting consumer
data.
Analytics Tools: Analyzing website traffic, user behavior, and sales data to inform
decision-making.
PART B
Answer all questions. Each question carries 5 marks (Maximum 35 marks)

16. What are the causes of Channel conflict?

Channel conflict refers to disputes, tensions, or disagreements that arise among
members of a distribution channel, such as manufacturers, wholesalers, retailers, and
intermediaries, regarding various aspects of how products are marketed, sold, and
distributed. Several causes can contribute to channel conflict:
Price Disputes:
Pricing competition: Conflicts may arise when channel members engage in price
wars or undercut each other, leading to reduced profit margins for all parties
involved.
Price discrimination: Manufacturers offering different prices to different channel
members can cause resentment and conflicts among those who perceive themselves
as disadvantaged.
Territorial Issues:
Geographic territory disputes: Conflicts can occur when multiple channel members
are given overlapping geographic territories or when exclusive territories are not
clearly defined.
Unauthorized sales: Unauthorized resellers or gray market activities can encroach
on the territory of authorized distributors or retailers, causing conflicts.
Product Availability and Allocation:
Allocation disputes: When product demand exceeds supply, conflicts may arise
over how products are allocated among channel members. Some may feel they are
receiving an unfair share.
Product shortages: Frequent product shortages or stockouts can strain relationships
as retailers and customers may blame manufacturers or wholesalers for poor supply
management.
Promotional and Marketing Issues:
• Advertising support: Differences in the level of advertising and promotional
support provided by manufacturers can lead to conflicts if some channel
members feel they are not receiving adequate marketing assistance.
• Exclusive promotions: Manufacturers may offer exclusive promotional deals
or discounts to specific channel members, causing resentment among others.
Channel Member Roles and Responsibilities:
Role ambiguity: Conflicts may arise when the roles and responsibilities of each
channel member are not clearly defined or are subject to interpretation.
Role redundancy: When multiple channel members perform similar functions, such
as advertising or customer support, it can lead to disputes over who is responsible
for what.
Product Quality and Returns:
Quality issues: Quality discrepancies or product defects can lead to disputes
between manufacturers and retailers regarding returns, refunds, and warranties.
Return policies: Differences in return policies and procedures between channel
members can cause conflicts, particularly when customers return products.
Communication Gaps:
Lack of communication: Insufficient or ineffective communication among channel
members can result in misunderstandings and conflicts. This can include a failure
to share market information, sales data, or inventory levels.
Communication breakdown: A complete breakdown in communication, such as
ignoring emails or phone calls, can escalate tensions and make conflict resolution
challenging.
Competing Sales Channels:
Multichannel competition: When manufacturers or suppliers sell directly to end
customers through their own e-commerce websites or retail stores, it can lead to
conflicts with traditional channel partners, such as retailers and distributors.
Changing Market Dynamics:
Market shifts: Changes in consumer preferences, market trends, or technology can
disrupt existing distribution channels and create conflicts as channel members adapt
to new market realities.
Economic Pressures:
Economic downturns: Economic challenges, such as recessions or economic crises,
can lead to conflicts as channel members struggle to maintain profitability.

Effective channel management and conflict resolution strategies, such as clear

contracts, dispute mediation, and open communication, can help mitigate the impact of
channel conflicts and maintain productive relationships among distribution partners

17. What are the benefits of IMC?

Provides information value to the products
Helps to meet competition
Creates demand
Maintains and improves demand
Helps to create powerful brand
Leads to better customer satisfaction
Helps social marketing
Create employment
Increased profit and sales
Consistent and credible message
Long term relationship with customers
Eliminates duplication
Interactivity
18. What types of electronic payment systems are required in e-commerce?
Electronic payment systems are essential in e-commerce for facilitating online
transactions and enabling customers to make secure and convenient payments for
products and services. Several types of electronic payment systems are commonly used
in e-commerce:

Credit and Debit Cards:

Credit Cards: Credit cards, such as Visa, MasterCard, American Express, and
Discover, are widely accepted in e-commerce. Customers can enter card
information, including the card number, expiration date, and security code, to make
payments.
Debit Cards: Debit cards are linked to a customer's bank account and allow for
direct fund withdrawals. They are often used for online purchases and offer a similar
payment process to credit cards.
Digital Wallets (E-Wallets):
PayPal: PayPal is a popular digital wallet that allows users to link their bank
accounts or credit cards and make online payments without sharing sensitive
financial information with merchants.
Apple Pay: Apple Pay enables users to make payments using their Apple devices,
such as iPhones, iPads, and Macs, at participating online retailers and physical
stores.
 Google Pay: Google Pay allows users to make online payments using their Google
account and mobile devices.
Samsung Pay: Samsung Pay is a mobile payment service that works with Samsung
devices and supports in-store and online purchases.
Bank Transfers:
Electronic Funds Transfer (EFT): EFT allows customers to transfer funds
directly from their bank accounts to a merchant's bank account. It is commonly used
for large purchases or recurring payments.
Direct Debit: Customers authorize merchants to withdraw funds directly from their
bank accounts to pay for subscriptions, bills, or online purchases.
Prepaid Cards and Gift Cards:
Prepaid cards and gift cards, such as those issued by major credit card companies
or specific retailers, are often used for online payments. Customers can load these
cards with a predetermined amount of money and use them for purchases.
Cryptocurrency:
Cryptocurrencies like Bitcoin, Ethereum, and others are increasingly accepted by
some online retailers. They offer a decentralized and secure payment method,
although their use in e-commerce is still relatively limited compared to traditional
options.
Bank Payment Systems:
Some countries have specific bank payment systems, such as iDEAL in the
Netherlands or GiroPay in Germany, which enable customers to make online
payments directly from their bank accounts.
Mobile Payment Apps:
Various mobile payment apps, including Venmo, Cash App, and Zelle, facilitate
person-to-person payments and can also be used for online purchases when
integrated with e-commerce platforms.
Peer-to-Peer (P2P) Payment Services:
P2P payment services like PayPal's Venmo and Square's Cash App enable users to
send money to friends and family, split bills, and make small online purchases.

19. What are the impacts of E-Commerce in India?

E-commerce has had significant impacts on India across various sectors, including the
economy, businesses, consumers, and society as a whole. Here are some of the key
impacts of e-commerce in India:

Economic Growth:
E-commerce has contributed to India's economic growth by creating jobs,
stimulating demand for logistics and delivery services, and increasing tax revenues.
It has provided opportunities for small and medium-sized enterprises (SMEs) and
individual entrepreneurs to reach a wider customer base, driving economic
inclusion.
Job Creation:
E-commerce has generated employment opportunities in various fields, including
warehousing, logistics, customer support, digital marketing, and IT.
It has also created opportunities for gig workers, such as delivery drivers and
freelance sellers on e-commerce platforms.
Increased Access to Markets:
E-commerce has democratized access to markets, allowing businesses from smaller
towns and rural areas to reach customers across India and globally.
It has reduced geographical barriers and enabled businesses to expand their
customer base without the need for physical storefronts.
Consumer Convenience:
E-commerce offers consumers the convenience of shopping from the comfort of
their homes or on the go, 24/7.
It provides access to a wide variety of products, price comparisons, and customer
reviews, enhancing the shopping experience.
Price Transparency and Competition:
E-commerce platforms promote price transparency by allowing consumers to
compare prices and features of products from various sellers.
Increased competition among sellers often results in competitive pricing and better
deals for consumers.
Digital Payments and Financial Inclusion:
E-commerce has played a role in promoting digital payments and cashless
transactions, contributing to the government's financial inclusion efforts.
It has driven the adoption of digital wallets, UPI-based payments, and online
banking.
Logistics and Infrastructure Development:
The growth of e-commerce has spurred investments in logistics infrastructure,
including warehouses, transportation, and last-mile delivery.
Improved logistics infrastructure benefits not only e-commerce but also other
industries.
Emergence of Startups and Entrepreneurship:
E-commerce has provided a platform for startups and entrepreneurs to innovate in
areas such as online retail, logistics technology, and supply chain management.
It has fostered entrepreneurship and innovation in India's business ecosystem.
Rural and Semi-Urban Market Penetration:
E-commerce platforms have made inroads into rural and semi-urban markets,
making products and services more accessible to previously underserved
populations.
This has facilitated the growth of rural e-commerce and increased income
opportunities for sellers in these regions.
Challenges and Regulatory Adjustments:
The growth of e-commerce has posed regulatory challenges, leading to adjustments
in e-commerce policies and regulations.
These adjustments aim to address issues related to consumer protection, data
privacy, foreign direct investment, and competition.
Environmental Concerns:
The rapid growth of e-commerce has raised environmental concerns related to
packaging waste, carbon emissions from deliveries, and the energy consumption of
data centers. Companies are increasingly focused on sustainability and green
initiatives.
Digital Literacy and Education:
E-commerce has encouraged digital literacy and online education as consumers and
businesses adapt to digital platforms for buying, selling, and marketing.
20. What is the role of Public Relations in Marketing?
Public relations is a strategic communication process companies, individuals, and
organizations use to build mutually beneficial relationships with the public.
A public relations specialist drafts a specialized communication plan and uses media
and other direct and indirect mediums to create and maintain a positive brand image
and a strong relationship with the target audience. The role of Public Relations are as
follows:-
⚫ Building Product Awareness. When introducing a new product or re-launching an
existing product, marketers can use a PR element that generates consumer attention
and awareness through media placements and special events.
⚫ Creating Interest. Whether a PR placement is a short product article or is included
with other products in “round up” article, stories in the media can help entice a
targeted audience to try the product. For example, around the holiday season, a
special holiday food may be promoted with PR through promotional releases sent
to the food media or through special events that sample the product.

⚫ Providing Information. PR can be used to provide customers with more in depth

information about products and services. Through articles, collateral materials,
newsletters and websites, PR delivers information to customers that can help them
gain understanding of the product.
⚫ Stimulating Demand. A positive article in a newspaper, on a TV news show or
mentioned on the Internet, often results in a discernible increase in product sales.
⚫ Reinforcing the Brand. In many companies the public relations function is also
involved with brand reinforcement by maintaining positive relationships with key
audiences, and thereby aiding in building a strong image. Today it is ever more
important for companies and brands to build a good image. A strong image helps
the company build its business and it can help the company in times of crises as
well. The objectives of Public Relations are:-
Creates and maintains a favourable image of the company and products among public.
Helps to build public confidence
Helps in crisis management
More credible than advertising
Helps to create and maintain reputation and status of the company
21. What are the four steps to designing marketing channels in their correct order?
Designing marketing channels involves a strategic process to create a distribution
network that efficiently and effectively delivers products or services to target
customers. The four key steps to designing marketing channels, in their correct order,
are as follows:

Channel Segmentation:
In this initial step, businesses identify and segment their target market based on
factors such as demographics, geographic location, purchasing behavior, and
preferences.
Segmenting the market helps determine the specific needs and preferences of
different customer groups, which is crucial for designing channels that can meet
those needs effectively.
Channel Targeting:
After segmenting the market, businesses select the target segments they intend to
serve. This step involves choosing which customer groups to focus on based on
 factors like market size, growth potential, and alignment with the company's
resources and capabilities.
Targeting helps prioritize channel design efforts and resources toward the most
promising market segments.
Channel Positioning:
Channel positioning involves defining the desired positioning of the company,
brand, or product in the minds of target customers within the chosen market
segments.
Businesses need to determine how they want their offerings to be perceived in terms
of factors like quality, price, convenience, and service.
The chosen positioning guides decisions related to channel types, distribution
strategies, and value-added services.
Channel Design and Management:
This final step involves designing the actual distribution channels and managing
their performance to deliver the desired customer experience.
Key considerations include selecting the appropriate channel members (e.g.,
wholesalers, retailers, e-commerce platforms), establishing distribution
agreements, setting pricing and margin structures, managing inventory, ensuring
efficient logistics and supply chain management, and implementing channel
marketing and promotion strategies.
Ongoing monitoring and evaluation of channel performance are essential to ensure
alignment with the intended market segments and positioning.

These four steps are integral to creating a well-structured and effective marketing
channel strategy. Properly executed, they can help businesses reach their target
customers efficiently and deliver products or services that align with customer needs
and preferences

22. What do you mean by Product-Life cycle marketing strategies?

Draw the Product Life Cycle Graph

Product life cycle marketing strategies refer to the tactics and approaches that
businesses use at different stages of a product's life cycle to maximize its market
potential, sales, and profitability. The product life cycle typically consists of four stages:
introduction, growth, maturity, and decline. Each stage presents unique challenges and
opportunities, necessitating specific marketing strategies. Here's an overview of
product life cycle marketing strategies for each stage:

Introduction Stage:
Market Research: Gather extensive market research to understand customer
needs, preferences, and potential demand.
Product Development: Focus on product innovation and differentiation to create
a unique selling proposition (USP).
Limited Distribution: Start with limited distribution to test the product's
acceptance and gather initial feedback.
Promotion: Invest in awareness-building and educational marketing campaigns to
introduce the product to the market.
 Pricing: Consider pricing strategies that may involve setting initial prices lower to
encourage trial and adoption.
Growth Stage:
Market Expansion: Expand distribution channels and geographic reach to capture
a broader customer base.
Brand Building: Continue building brand awareness and loyalty through
advertising and marketing campaigns.
Product Line Extensions: Introduce variations or extensions of the product to cater
to diverse customer needs.
Pricing: Depending on market dynamics, maintain or adjust pricing strategies,
which may include premium pricing for added features or lower prices to gain
market share.
Customer Support: Invest in customer support and service to maintain customer
satisfaction and retention.
.
Maturity Stage:
Market Saturation: The market approaches saturation, so competition intensifies.
Focus on retaining existing customers.
Product Differentiation: Emphasize product quality, features, and benefits to
differentiate from competitors.
Cost Efficiency: Seek cost reductions in production, distribution, and marketing to
maintain profitability.
Pricing Strategies: Consider price discounts, bundles, or value-added packages to
maintain market share.
Market Segmentation: Identify niche markets or segments to explore new
customer groups.
Promotion: Shift promotional efforts from awareness to reminders and incentives
to encourage repeat purchases.
Decline Stage:
Market Exit or Harvest: Evaluate whether to continue or exit the market. For
profitable products, consider harvesting profits with minimal investment.
Cost Reduction: Streamline production and distribution costs to maximize profit
margins.
Product Phasing Out: Gradually phase out the product by reducing marketing
efforts and distribution channels.
Customer Retention: Maintain support for loyal customers and offer incentives
for bulk purchases.
Inventory Management: Manage inventory efficiently to avoid overstocking.
Product Discontinuation: Plan for the eventual discontinuation or replacement of
the product.

It's important to note that not all products follow a linear life cycle, and some may
experience variations or extensions of stages. Additionally, the timing and success of
each stage can vary based on factors like market competition, consumer trends, and
technological advancements. Effective product life cycle management requires
continuous monitoring and adaptability to market changes.
23. What are the major differences between Goods and Services?
Goods Services
 Object, device or thing Deed, performance, effort
Tangible Non-tangible
Perishable Non-perishable
Transfer of ownership No transfer of ownership
Standardised Difficult to standardise
Can be replaced Cannot be replaced
Have resale value No resale value
Goods are manufactured Services are performed

PART C
Answer any two questions. Each question carries 10 marks

24. Write a note on Brand Equity?

Brand equity is a critical concept in marketing that represents the intangible value and
strength associated with a brand. It reflects the perception, reputation, and overall
influence a brand has in the minds of consumers. Building and maintaining brand
equity is essential for businesses as it can lead to increased customer loyalty, premium
pricing, and a competitive advantage. Here are some key points to note about brand
equity:

Definition:
Brand equity is the sum total of a brand's value, encompassing both tangible and
intangible assets. It goes beyond the physical product or service to include the
emotional and psychological associations consumers have with the brand.
Components:
Brand equity consists of several interconnected components, including:
Brand Awareness: The extent to which consumers recognize and recall
the brand.
Brand Association: The specific attributes, qualities, or emotions linked
to the brand.
Brand Loyalty: The degree of customer attachment and repeat purchase
behavior.
Perceived Quality: Consumers' perception of the brand's quality relative
to competitors.
Brand Identity: The visual and symbolic elements (logo, tagline, colors)
that represent the brand.
Brand Image: The overall impression and reputation of the brand in the
market.
Benefits of Brand Equity:
Customer Loyalty: Brands with strong equity tend to have loyal customers who
are more likely to choose the brand over competitors.
Higher Prices: Brands with positive equity can often charge premium prices for
their products or services.
Market Expansion: Strong brands can more easily expand into new markets or
product categories.
Risk Mitigation: Brands with equity are often more resilient in the face of
negative events or crises.
 Efficient Marketing: Brands with established equity may require less marketing
expenditure to maintain their position in the market.
Building Brand Equity:
Brand equity is built over time through consistent marketing efforts that reinforce
brand values and messaging.
Providing high-quality products or services and delivering exceptional customer
experiences are critical for building positive brand associations.
Effective advertising, storytelling, and communication strategies help shape brand
perception.
Brands can also leverage endorsements, partnerships, and sponsorships to enhance
their image.
Measuring Brand Equity:
Several methods and metrics are used to measure brand equity, including brand
audits, customer surveys, and financial valuation models.
Metrics like brand awareness, customer loyalty, and Net Promoter Score (NPS)
can provide insights into the strength of brand equity.
Maintaining Brand Equity:
Brands must continuously invest in marketing, product development, and
customer service to maintain and enhance brand equity.
Protecting the brand's reputation and addressing negative publicity or customer
complaints promptly is crucial.
Staying attuned to changing consumer preferences and market dynamics helps
brands remain relevant.
Brand Equity and Brand Extensions:
Strong brands often have the opportunity to extend their product lines or enter
new markets under the same brand name. This can be a strategic advantage if
consumers trust the brand.
However, brand extensions must align with the core brand values and maintain
quality to avoid damaging brand equity.

In summary, brand equity represents the intangible value that a brand adds to a
business. It is the result of consistent efforts to build strong brand awareness, positive
associations, and customer loyalty. Brand equity contributes to long-term success by
allowing brands to charge premium prices, expand their market presence, and enjoy
the loyalty of devoted customers.

25. What are the factors influencing Consumer Behaviour?

Consumer behavior is influenced by many external factors and internal factors such as
situational, psychological, environmental, and marketing factors, personal factors,
family, and culture.

Businesses try to collect data so that they can make decisions on how they can reach
their target audience in the most efficient way. While some influences may be
temporary and others can be long-lasting, these factors can influence a person to buy or
not buy.

Situational factors
They are temporary in nature and include physical factors such as a store’s location,
layout, colors, music, lighting, and even scent. Companies try to make these factors as
favorable as possible. Other situational factors include holidays, time, and moods of
the consumer.

Personal factors

These factors include demographic factors such as age, gender, income, occupation,
etc. It also depends on one’s interests and opinions. To further understand consumers,
companies also look more closely at their lifestyles – their daily routine, leisure
activities, etc.

Social factors

This factor also includes social class, level of education, religious and ethnic
background, sexual orientation, customer orientation, and people around you – family,
friends, or social network. Different cultures have varying customs and rituals that
influence how people live their lives and what products they purchase.

Generally, consumers in the same social class exhibit similar buying behavior. Most
market researchers believe a person’s family is one of the biggest determinants of
buying behavior.

Psychological factor

A person’s ability to understand information, perception of needs, and mindset

influence consumer behavior. One’s reaction to a marketing campaign will depend on
one’s beliefs and state of mind.

26. What do you mean by pricing strategies in marketing? What are the major pricing
strategies?
Strategy is to understand the business one intends to do
Pricing strategy is a special plan formulated in order to meet the challenges of the
external factors especially competitors
Pricing policies provide general set of rules for making pricing decision whereas
pricing strategy is the plans made by the company in the light of pricing policies to
meet their individual situation
If the company decides to give 50% off during the Aadi festival season, that is the
pricing strategy.
The major Pricing strategies are:-
Premium pricing
Penetration Pricing
Economy Pricing
Price Skimming
Psychological Pricing
Bundle Pricing
Dynamic Pricing
Premium pricing, also called image pricing or prestige pricing, is a pricing strategy of
marking the price of the product higher than the industry standards/competitors’
products.
The idea is to encourage a perception among the buyers that the product has a more
utility or a higher value when compared to competitors’ products just because it is sold
at a premium price.
Penetration pricing is a pricing strategy where the price of the product is initially kept
lower than the competitors’ products to gain most of the market share and to trigger
word of mouth marketing.
Even though this strategy leads to losses initially, it results in many customers shifting
to the brand because of the low prices.
Once these customers become loyal and the brand achieves a strong market penetration,
marketers increase the prices to a point where they get optimum profits without much
loss of customers.
Eg: Nestle launched its first wafer chocolate munch for Rs. 2, and once market was
established, it launched new pack for Rs.5
Economy pricing is a no-frills pricing strategy followed by generic food suppliers and
discount retailers where they keep the prices of the product minimal by reducing the
expenditure on marketing and promotion.
This strategy is used essentially to attract most price-conscious consumers.
The key to success using economy pricing strategy is to sell a large volume of product
and services at low prices.
The strategy is most suited to big businesses like Walmart.

Price Skimming is a strategy of setting a relatively high introductory price of the

product when the product is new and unique and the market has fewer competitors.
The idea is to maximize the profits on early adopters before competitors enter the
market and make the product more price sensitive.
The strategy got its name from successive skimming of layers of cream or the customer
segments as the prices are lowered over time.
The initial high price not only helps the business to recover its development costs but
also gives the product a perception of being an exclusive and premium product.
This is done with the idea of gaining a premium from those buyers who are always to
ready to pay a much higher price than others.
This is adopted when there are no close substitutes, to attract consumers of high income
group, elasticity of demand is not known, buyers have no measuring rod for comparing
value and utility.
Some manufacturers fix prices of their products in the manner that it may create an
impression in the minds of consumers that prices are low.
Eg:- Price fixed like 99.95, 199.95
Psychological pricing refers to the psychological pricing strategies marketers use to
make customers buy the products, triggered by emotions rather than logic. Such
strategies come in the form of:
(a)Charm Pricing: This involves reducing the price by a minimal amount which makes
the customer perceive the price to be less..
(b)Prestige Pricing: This involves rounding off and setting a higher price for premium
and exclusive products as rounded figures are easily processed and are preferred in such
cases.
(c)BOGOF: Buy one, get one free offers exploit the greed among the customers as they
get two products for the price of one.
(d)Price Anchoring: Anchor is the first (higher or lower) price communicated to the
customer to make their mind revolve around that price and buy the product the retailer
wants. E.g.– printing double price label showing a regular price and a sale price
Bundle pricing involves selling packages or set of goods or services at lower prices than
they would have actually cost if sold separately.
This is an effective strategy to bundle unsold products or products with less demand
with the high selling products to clear up the shelf space and to increase the profits.
Bundling works wonders when two complementary products are bundled together.
Eg: Music set offered long with new cars
Dynamic pricing, also called demand pricing, is a comparatively new pricing strategy
which charges different prices of the same item from different users depending upon
their perceived ability to pay.
This pricing strategy is dependent on the internet and is usually used by the E-
commerce website. It uses cookies and internet browsing history of the users to
understand their requirements and the urgency to buy and price the products
accordingly to increase the sales.
27. What do you mean by Sales Promotion? State its major objectives?
Sales Promotion: The sales promotion includes several short-term incentives to
persuade the customers to initiate the purchase of the goods and services.
This promotion technique not only helps in retaining the existing customers but also
attract the new ones with the additional benefits. Rebates, Buy- one –get- one free
scheme, coupons, etc. are some of the sales promotion tools.
Advantages of Sales Promotion

It promotes sales
It helps in creating demand for the new product
It helps in facing the competition successfully
It helps in simplifying the work of the middlemen
It offers a number of cash and non cash incentive to the customers

Objectives of Sales Promotion

Boost Sales Volume: The most immediate and direct objective of sales promotion is to
increase sales and revenue for a product or service. By offering incentives or discounts,
businesses aim to attract more customers and persuade them to make a purchase.
Generate Interest and Awareness: Sales promotions can create buzz and generate
interest in a product or brand. They serve as a means to introduce new products to the
market or rekindle interest in existing ones.
Clear Inventory: Businesses use sales promotion to clear excess inventory or outdated
products. Discounts and special offers motivate customers to buy these items quickly,
preventing overstock situations.
Competitive Advantage: Sales promotions can help a business gain a competitive edge
by offering better deals or more attractive incentives than competitors. This can attract
customers away from rival brands.
Customer Acquisition: Sales promotions can attract new customers who may not have
considered purchasing from the brand before. It serves as an opportunity to expand the
customer base.
Customer Retention: Sales promotions can also be used to retain existing customers
by rewarding their loyalty. Loyalty programs, discounts for repeat purchases, or special
offers for long-term customers can help in this regard.
Encourage Trial and Sampling: Businesses can use promotions to encourage
customers to try a new product or service. Sampling, free trials, or introductory
discounts are common strategies for this purpose.
Stimulate Repeat Purchases: By offering incentives like discounts on future
purchases or loyalty rewards, businesses aim to encourage customers to make repeat
purchases and establish brand loyalty.
Increase Basket Size: Sales promotions can encourage customers to buy more than
they initially intended. Strategies like "buy one, get one free" or bundle offers (e.g.,
"buy a combo meal") are designed to increase the size of the purchase.
Seasonal and Holiday Marketing: Sales promotions are often used to capitalize on
seasonal and holiday shopping trends. Businesses can create themed promotions for
holidays like Christmas, Black Friday, or Valentine's Day.
Data Collection: Some promotions require customers to provide contact information
or participate in surveys, enabling businesses to collect valuable customer data for
future marketing efforts.
Introduce Upgrades or Add-Ons: Sales promotions can be used to introduce
customers to premium or upgraded versions of products or encourage the purchase of
complementary add-on items.
Create a Sense of Urgency: Limited-time offers and flash sales create a sense of
urgency, motivating customers to make a quick decision and purchase.
Test New Markets: Sales promotions can be used to test the viability of entering new
markets or regions, helping businesses gauge demand and customer response.
Measure Marketing Effectiveness: Sales promotions provide a way to measure the
effectiveness of marketing campaigns by tracking the response to specific promotions,
coupons, or discounts

Limitations
It is only a short term activity
Too much sales promotion can adversely affect the brand image
Wholesalers and retailers don not always deliver the promises so affects the brand
image of the product
Consumers feel that the discounts are not real, as the price has been hiked
Customers expect sales promotions all the time

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