Q1. (A) Marketing Mix is the marketing managers instrument for the attainment of marketing targets. Discuss. Ans.

The Marketing mix is a set of four decisions which need to be taken before launching any new product. These variables are also known as the 4 Ps of marketing. These four variables help the firm in making strategic decisions necessary for the smooth running of any product / organization. These variables are 1. Product 2. Price 3. Place 4. Promotions Marketing mix is mainly of two types. 1) Product marketing mix Comprised of Product, price, place and promotions. This marketing mix is mainly used in case of Tangible goods. 2) Service marketing mix The service marketing mix has three further variables included which are people, physical evidence and process. They are discussed in detail in the article on service marketing mix. The term marketing mix was first coined by Neil H Borden back in 1964 in his article The concept of marketing mix. Several strategic analysts over the years believe that the marketing mix can make or break the firm. Having the right marketing mix at the start of the marketing plan is absolutely essential. Over time the concept of marketing mix has provided a steady platform for the launch of a new product or business. As mentioned before, the marketing mix is characterized by four different but equally important variables. These variables are never constant and may be changed over time. However, a change in one of the variables may cause a change in all the other variables as well. The variables are as follows 1) Product The first thing you need, if you want to start a business, is a product. Therefore Product is also the first variable in the marketing mix. Product decisions are the first decisions you need to take before making any marketing plan. A product can be divided into three parts. The core product, the augmented product and the tertiary product. Before deciding on the product component there are some questions which you need to ask yourself. What product are you selling? What would be the quality of your product? Which features are different from the market? What is the USP of the product?

Whether the product will be branded as sub brand or completely new? What are the secondary products which can be sold along with primary (Warranty, services) Based on these questions, several product decisions have to be made. These product decisions will in turn affect the other variables of the marketing mix. For example You launch a car with is to have the highest quality. Thus the pricing, promotions and placing would have to be altered accordingly. Thus as long as you dont know your product, you cannot decide any other variable of the marketing mix. However, if the product features are not fitting in the marketing mix, you can alter the product such that it finds a place for itself in the marketing mix. 2) Pricing Pricing of a product depends on a lot of different variables and hence it is constantly updated. Major consideration in pricing is the costing of the product, the advertising and marketing expenses, any price fluctuations in the market, distribution costs etc. Many of these factors can change separately. Thus the pricing has to be such that it can bear the brunt of changes for a certain period of time. However, if all these variables change, then the pricing of a product has to be increased and decreased accordingly. Along with the above factors, there are also other things which have to be taken in consideration when deciding on a pricing strategy. Competition can be the best example. Similarly, pricing also affects the targeting and positioning of a product. Pricing is used for sales promotions in the form of trade discounts. Thus based on these factors there are several pricing strategies, one of which is implemented for the marketing mix. 3) Place Place refers to the distribution channel of a product. If a product is a consumer product, it needs to be available as far and wide as possible. On the other hand, if the product is a Premium consumer product, it will be available only in select stores. Similarly, if the product is a business product, you need a team who interacts with businesses and makes the product available to them. Thus the place where the product is distributed, depends on the product and pricing decisions, as well as any STP decisions taken by a firm. Distribution has a huge affect on the profitability of a product. Consider a FMCG company which has national distribution for its product. An increase in petrol rates by 10 rs will in fact bring about drastic changes in the profitability of the company. Thus supply chain and logistics decisions are considered as very important costing decisions of the firm. The firm needs to have a full proof logistics and supply chain plan for its distribution. 4) Promotions Promotions in the marketing mix includes the completeintegrated marketing communications which in turn includes ATL and BTL advertising as well as sales promotions. Promotions are dependent a lot on the product and pricing decision. What is the budget for marketing and advertising? What stage is the product in? If the product is completely

new in the market, it needs brand / product awareness promotions, whereas if the product is already existing then it will need brand recall promotions. Promotions also decide the segmentation targeting and positioning of the product. The right kind of promotions affect all the other three variables the product, price and place. If the promotions are effective, you might have to increase distribution points, you might get to increase the price because of the rising brand equity of the product, and the profitability might support you in launching even more products. However, the budget required for extensive promotions is also high. Promotions is considered as marketing expenses and the same needs to be taken in consideration while deciding the costing of the product. Thus as we see from the above explanations, all the four variables of marketing mix are inter related and affect each other. By increasing the pricing of the product, demand of the product might lessen, and lesser distribution points might be needed. On the other hand, the product USP can be such that maximum concentration is on creating brand awareness, thereby increasing need of better pricing and more promotions. Finally, the overall marketing mix can result in your customer base asking for some improvement in the product, and the same can be launched as the upgraded product. The above four Ps of marketing give you an overall look at the product marketing mix. If your product is a service then there are 3 further Ps taken into consideration namely people, physical evidence and process.

The extended service marketing mix are : 5) People People is one of the elements of service marketing mix. People define a service. If you have an IT company, your software engineers define you. If you have a restaurant, your chef and service staff defines you. If you are into banking, employees in your branch and their behavior towards customers defines you. In case of service marketing, people can make or break an organization. Thus many companies nowadays are involved into specially getting their staff trained in interpersonal skills and customer service with a focus towards customer satisfaction. In fact many companies have to undergo accreditation to show that their staff is better than the rest. Definitely a USP in case of services. 6) Process Service process is the way in which a service is delivered to the end customer. Lets take the example of two very good companies Mcdonalds and Fedex. Both the companies thrive on their quick service and the reason they can do that is their confidence on their processes. On top of it, the demand of these services is such that they have to deliver optimally without a loss in quality. Thus the process of a service company in delivering its product is of utmost importance. It is also a critical component in the service blueprint, wherein before

establishing the service, the company defines exactly what should be the process of the service product reaching the end customer. 7) Physical Evidence The last element in the service marketing mix is a very important element. As said before, services are intangible in nature. However, to create a better customer experience tangible elements are also delivered with the service. Take an example of a restaurant which has only chairs and tables and good food, or a restaurant which has ambient lighting, nice music along with good seating arrangement and this also serves good food. Which one will you prefer? The one with the nice ambience. Thats physical evidence. Several times, physical evidence is used as a differentiator in service marketing. Imagine a private hospital and a government hospital. A private hospital will have plush offices and well dressed staff. Same cannot be said for a government hospital. Thus physical evidence acts as a differentiator. This is the service marketing mix (7p) which is also known as the extended marketing mix.

Q1 (B) What is Consumer Goods Marketing ? Ans. Consumer market means a market for consumer goods. Consumer goods are purchased for direct and final use by the purchaser and not used for further processing. Consumer goods marketing relates to the consumer products of daily use such as soap, detergents, toothpaste, oil, grocery items, cosmetics, ready-made garments and consumer durables such as radio, TV, refrigerators, mixers, fans, computers and sewing machines. The demand for consumer goods is direct, regular and also elastic. These goods have a wide market and the market competition is also severe. According to the committee on definitions of American Management Association, consumers goods are products destined for use by the ultimate consumer or households and in such form that they can be used without further processing. Features of consumer goods Marketing : (a) Consumer goods have large number of buyers and sellers spread over the whole country . Every individual has to purchase consumer items for meeting his regular needs. (b) The market for consumers goods is widespread. Every village taluka and district places, cities and towns are a market for consumer goods. (c) Consumer goods may be durable or perishable, low-priced or high-priced and necessity or luxury. Fish or bread is a perishable consumer item and it must be used quickly. Durable consumer items like TV set, automobile,etc. can be used over many years. (d) Buyers of consumer goods have limited information about the consumer items. Naturally, they are dependents on the retailers for such information. (e) The market for consumer goods is highly competitive. The competition is among the manufactures and also among the retailers like department stores and supermarkets. Consumer Goods Marketing in India: a) There is a growing popularity of consumer goods marketing in india, as these goods are being marketed on large-scale in the urban and rural markets in india. The socioeconomic factors and favourable for growth of consumer goods marketing in recent years. b) There is a considerable expansion in regards to the size of consumer goods market. The market of certain consumer items such as cosmetics and toiletries has increased considerably in recent times.

Q1 (A). Define services. Explain any six characteristics of services. Ans. Services are the activities, benefits or satisfactions which are offered for sale or are provided in connection with the sale of goods A service is an act or performance offered by one party to another. They are economic activities that create value and provide benefits for customers at specific times and places as a result of bringing about a desired change in or on behalf of the recipient of the services. The following are the characteristics of services are:a. Intangibility : Services are intangible we cannot touch them. They are not physical objects. A consumer feels that he has the right and opportunity to see, touch, hear, smell or taste the goods before they buy them. This is not applicable to services, the buyer does not have any opportunity to touch, smell, and taste the services. While selling or promoting a service one has to concentrate on the satisfaction and benefit a consumer can derive having spent on these services. b. Perishability : Services too are perishable like labour. Services have a high degree of perishability. Here the element of time assumes a significant position. If we do not use it today, it is lost forever. If labour stops working, it is a complete waste. It cannot be stored. Utilised or unutilised services are an economic waste. An unoccupied building, an unemployed person, credit utilised, etc.are economic waste. Services have a high level of perishability. c. Inseparability : Services are generally created or supplied simultaneously. They are inseparable. For an e.g., the entertainment industry, health experts and other professionals create and offer their service at a same given time. Services and their providers are associated closely and thus, not separable. Therefore inseparability is an important characteristic of services which proves challenging to service management industry. d. Heterogeneity : This character of services makes it difficult to set a standard for any service. The quality of services cannot be standardised. The price paid for a service may either be too high or too low as is seen in the case of the entertainment industry and sports. The same type of service cannot be sold to all the consumers even if they pay the same price. Consumers rate these services in different ways. This is due to the difference in perception of individuals at the level of providers and users. Heterogeneity makes it difficult to establish standards for the output of service firm. e. Quality measurement :

A service sector requires another tool for measurement. We can measure it in terms of service level. It is very difficult to rate or quantify total purchase. Hence we can determine the level of satisfaction at which users are satisfied. Thus the firm sells good atmosphere, convenience of customers. Consistent quality of services, etc. f. Nature of Demand : Generally, the services are fluctuating in nature. During the peak tourist season there is an abnormal increase in demand of services. Therefore, while identifying the salient features of services one cannot ignore the nature of demand. For e.g., tourists go to hill stations during summer season wherein public transport utilities are used substantially. This indicates that flexibility is the important feature of service.

Q2 (A). What factors influence the buying behavior of the consumer? Explain any four. Ans. A consumer is an individual who buys products or services for personal use and not for manufacture or resale. A consumer is someone who can make the decision whether or not to purchase an item at the store, and someone who can be influenced by marketing and advertisements. Any time someone goes to a store and purchases a toy, shirt, beverage, or anything else, they are making that decision as a consumer. Buying behaviour. Consumer decision - making varies with the different type of products or services buying decision. We can classify the consumer buying behaviour into four categories, these are : 1. Situation factors: The situation factors influencing the buyers behavior are the influence of time pressure in product and brand choice, the atmosphere of the retail outlet , location of the purchase etc. For example when one goes for a holiday the demand of lodging and boarding will obviously be there. 2. Buyers socio cultural characteristics : Buyers do not take buying decisions or the decision not to buy in a vacuum. Rather, they are strongy influenced by cultural, social, persona, and physiological factors. a. Cultural factors Culture refers to the values, practice of the customs of the people in the society. It is the social heritage of the society that influences the lifestyle of the people. The beliefs, values and the customs go deeper and deeper as the person grows. Therefore, it is sometimes said that culture is learnt as part of the social experience. The various categories within the culture can be identified based on religion, age , gender , occupation , social class , geographical location etc. this classification is relevant fom the consumer behavior point of view. b. Reference groups There are certain groups which people look to guide their behavior. These reference groups guide the choice of the product but peer pressure has proved to play an important role in the purchase of credit cards, phones, etc. c. Family The family is another major influence on consumer behavior. Family consumption behavior depends largely on the family life cycle. The stages in family lifecycle includes bachelorhood, newly married, parenthood, growing or grown up children, etc. Knowledge about these stages helps greatly in the buying process. Often family members play an important role in the purchase of any particular service.

3. Personal factors : The personal characteristics of a person like age, lifestyle, occupation, etc. influence ones decision. The choice of the consumers for goods and services change over lifetime due to their age and their life cycle stage. The persons occupation and the economic circumstances have an influence on the goods and services bought. A worker may choose a service that may just offer the basic services, though it may be expensive. The marketers should identify the occupational group that would be interested in their services and work out appropriate marketing strategies in order to communicate about the service to the relevant occupational group. 4. Physiological factors: Perception, attitude and motivation have a significant influence in customer buying behavior. a. Perception Perception is the process by which buyers select, arrange, and interpret information into a meaningful process in their mind. It is also selective and only a small part is perceived out of the total of what is perceivable. The buyers perception of a certain product greatly influences the buyers behavior. b. Attitude An attitude is a learned predisposition to respond in a favorable or unfavorable manner with respect to a market offer, that is a brand, a particular shop, a retail outlet, etc. If we do not know the personal aspect of the buyers attitude we would not know the clear prediction of his behavior. For example, a person may have a high interest in a car insurance but stays away from using it since he does not own a car. c. Motivation Motivation is the driving force between individuals that compels them to action. Such a driving force is subconscious and the outcome of certain unfulfilled needs. Needs can be of two types, the innate needs with which a person is born and they are mainly physiological. They include all factors that require to sustain physical life. For example water, food, shelter, etc. secondly, needs can be acquired. Needs that a person acquires as he or she grows and these needs are mostly physiological like fear, acceptance, love, etc.

Q2 (B) Discuss the different dimension of marketing ? Ans. Dimensions of Quality refers to process quality as judged by the consumers during a service delivery and the quality of output judged after a service is performed. Christian Gronroos has presented a new paradigm to explain how a customer perceives service quality. According to him service quality can be divided into two quality dimensions : Technical and functional. Technical Quality means what of service i.e what is offered to the customer .The functional, quality dimensions addresses the issue of how services is delivered to the customer. Functional Quality of a service is influenced by attitude, behavior, service mindedness, appearance, accessibility, courtesy, empathy etc of the service provider. When technical quality in a service sector is almost the same, functional quality may be the right kind of instrument for garnering customer preference over the other. It may turn out to be not only a tool of brand differentiation and positioning but also a potent advantage . Berry, Parasuram and Zeithaml conducted an extensive research in service quality and identified 10 criteria used by consumers in evaluating service quality. It was found that there were was a hogh degree of correlation between most of these 10 variables. They were consolidated into five broad dimensions. The 5 Service Quality Dimensions Every company owner wants to get loyal customers which add to repeating purchases and of cause increasing their maximum revenue. But to get there they need to know about the 5 Service Quality Dimensions. Many actually think that service is just a little part of the marketing mix, but it is actually a very important part of both the 4 and 7 P's

Each of the 5 Service Quality Dimensions makes an extra addition to the level and quality of service which the company offers their customers. It also makes the service far more unique and satisfying. Dimension 1 - tangibles; The tangible Service Quality Dimension refers to the appearance of the physical surroundings and facilities, equipment, personnel and the way of communication. In other words, the tangible dimension is about creating first hand impressions. A company should want all their customers

to get a unique positive and never forgetting first hand impression, this would make them more likely to return in the future. Dimension 2 - reliability; The reliability Service Quality Dimension refers to how the company are performing and completing their promised service, quality and accuracy within the given set requirements between the company and the customer. Reliability is just as important as a goof first hand impression, because every customer want to know if their supplier is reliable and fulfill the set requirements with satisfaction. Dimension 3 - responsiveness; The responsiveness Service Quality Dimension refers to the willingness of the company to help its customers in providing them with a good, quality and fast service. This is also a very important dimension, because every customer feels more valued if they get the best possible quality in the service. Dimension 4 - assurance; The assurance Service Quality Dimension refers to the company's employees. Are the employees skilled workers which are able to gain the trust and confidence of the customers? If the customers are not comfortable with the employees, there are a rather large chance that the customers will not return to do further business with the company. Dimension 5 - empathy; The empathy Service Quality Dimension refers to how the company cares and gives individualized attention to their customers, to make the customers feeling extra valued and special. The fifth dimension are actually combining the second, third and fourth dimension to a higher level, even though the really cannot be compared as individuals. If the customers feel they get individualized and quality attention there is a very big chance that they will return to the company and do business there again.

Q3 (A). How can insurance services be promoted through advertising? Ans. Advertising is a paid form of persuasive communication, which is found important to promote insurance business. Advertising is now treated as a profession and the advertising professional bear the responsibility of making the advertisement slogans, appeals, campaigns creative so that the process of sensitizing the prospectus is found proactive. 1. In a country like India it is essential to have both personal and impersonal promotion strategies. In promoting insurance business, the agents and the rural career agents play an important role. Due attention should be given in selecting the promotional tools for agents and rural career agents and even for the branch managers and the front line staff. They also have to give proper training in order to create impulse buying. 2. One of the components of buying is advertising. Advertising or advertizing is a form of communication used to encourage or persuade an audience (viewers, readers or listeners; sometimes a specific group of people) to continue or take some new action. Commercial advertisers often seek to generate increased consumption of their products or services through "branding," which involves the repetition of an image or product name in an effort to associate certain qualities with the brand in the minds of consumers. 3. Advertising can be done through telecasting media, broadcast media and the print media. Telecasting media is more effective in sensitizing process. With the help of audio visual exposure, the rate of acceptability of the message is increased. One cannot deny that the telecast media is expensive but in order to promote insurance business one has to assign due weight age to the same. 4. The broadcast media can be used to the very purpose. If one has a big transmission network and well developed system the insurance organization can make use of it. If the message is sensitive the rate of acceptability will be high. Another benefit of this media is to reach the message even to the remotest part of the country. It is an economical media. 5. The cheapest among the three is the print media. As it is economic in nature , and impressive in expression, the print media of late has made the media more attractive.

Q3 (B). What is direct marketing? How does it benefit buyers and sellers? Direct marketing is an iteractive marketing system that uses one or more advertising to effect a measurable response or transaction at any location. This emphasis a measurable response,typically the customers order. The benefits of direct marketing to buyers are: a. It is convenient as customers dont have to battle traffic, find parking spaces and trek through stores to find and examine products. They can do comparative shopping by browsing through the mail catalogues or surfing the internet. Direct marketers never close their doors. b. Buying is easy and private as customers encounter fewer buying hassles and dont have to face sales person or open themselves up for persuasion. Business buyers can learn about available products and services without waiting for the sales person. c. Direct marketing provides the shoppers with greater product access. Beyond a broader selection of sellers and products,online and internet channels also gives consumers access to a wealthof comparative information,information about companys products and their competitors. Good sites often provide more information in more useful forms than even the most intelligent sales person. d. Online buying is interactive and immediate. Consumers often can interact with the sellers site to create exactly the configuration of information,products or services they desire,then order or download them on the spot. Moreover,the internet and other forms of direct marketing give consumers a great measure of control. Benefits of direct marketing to sellers are: a. Direct marketing is a powerful tool for customer relationship building. Direct marketers build or buy databases containing detailed information about potentially profitable customers.using these databases,they build strong,on going customer relationships. b. With todays technology,the direct marketers can select small groups or even individual customers,personalize offer to their special needs and wants, and promote theses offers through individualized communications. c. Direct marketing can also be timed to reach prospects at just and right moment. Because they reach more interested consumers, and the best times, direct marketing materials receive better response.direct marketing also permits easily testing of media. d. Internet is especially potent direct marketing tool. Companies can interact online with customers to learn more about the specific needs and wants.in turn,online customers can ask questions and ask for feedback.based on this ongoing interaction,companies can increase customer values andsatisfaction through product and surface refinements. e. Direct marketing via the internet and other electronic channels yields additional advantages,such as reducing cost and increasing speed and efficiency. Online marketers avoid the expense of maintaining and accompanying the cost of rent,insurance and utilities.

f. Because the customers deal directly with sellers,online marketers often results in lower costs and improved efficiency for channel and logistic function such as order processing,inventory handling,delivery and trade promotion g. Online marketing also provides greater flexibility allowing the marketersto make ongoing adjustments to its offers and programmes.

Q3 (A). Discuss the role of ecommerce in the 21st century. Ans. Electronic commerce, commonly known as e-commerce or e-comm, is the buying and selling of products or services over electronic systems such as the Internet and other computer networks. Electronic commerce draws on such technologies as electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange(EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction's life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices and telephones as well. Simply put, e-commerce is the "buying and selling of goods and services online." Usually it is done through a specific website. In recent years, e-commerce activity has exponentially grown, overtaking traditional business methods. Latest trends show that online shopping continues to grow and e-commerce in the first few years of the 21st century is projected to have ranged between billions to trillions of dollars. E-commerce will agreeably be a major part of the 21st century world economy. The importance of ecommerce a. The Internet industry is going vast. Today, telephone, cable and satellite TV companies battle over supremacy for providing Internet connectivity to America's homes. AT&T would not have invested billions to get TV companies and access high-speed wires leading to homes, if they did not see big benefits in return. What benefits are we talking about? b. The rapid expansion of the internet industry brings with it the onslaught of millions of internet users. Different sources contend that there will soon be over 100 million people using the World Wide Web. About 25% of them are Internet shoppers. To the businessman, the internet is obviously a crucial place for potential customers. Not only can it cater to more customers, it can also expand to areas not within immediate reach of the business. c. E-commerce is a quicker and a more cost-effective way of shipping goods. Payments online are faster too. Thus, if you are in the public marketing business, e-commerce is a vital part of your future. d. For the consumer on the other hand, e-commerce also plays a vital role for purchasing goods. Searching via the internet is much more convenient and faster than real shopping. Products sold online has also grown due to easier advertisement. Customers can also easily verify information on the goods being sold. Payment also proves to be faster

although there are risks of sham. Nonetheless, e-commerce is also important for the consumer. e. To stay in touch with this fast growing economy, one tends to make use of e-commerce solutions as they offer numerous advantages as listed below 1. No time barrier. One can log on to the Internet at any point of time, and can sell at a single click of mouse. 2. E-commerce is the cheapest means of doing business. 3. Ready-to-use information about any product or service. 4. Ecommerce development has made it possible to reduce the cost of marketing and promotions. 5. It reduces delivery time, labour cost and is surely viable in its all possible ways. 6. On-time alerts for the convenience of the consumers informing about new products. 7. Last but not the least, with the development of e-commerce, it has been possible to save time of both the vendor and the consumer.

Q3 (B). State the factors influencing marketing communication mix? Companies must consider the following factors in setting up marketing communication mix: Type of product market

Promotional allocations vary between consumers and business markets.consumer marketers spend on sales promotion,advertising,personal sellimg,etc.in general personal selling is more heavily used with complex,expensive and risky goods and in the markets fewer and larger sellers Push or pull strategy

The promotional mix is heavily influenced by whether the company selects the push or pull strategy to create sales.push strategy involves the manufacturerusing sales force and trade promotionto induce intermediaries to carry,promote and sell the product to the end users.push strategy is specially appropriate wherethere is no brand loyalty in the category,brand choices made in the store,the product is an impulse item and the product benefits are well understood.companies in the same industry may differ in their emphasis on push or pull. Buyer;s readiness stage

The promotional tools vary in cost effectiveness at different stages of buyers readiness.advertising and publicity plays the most important roles in the awareness building stage customer comprehension is primarily affected by advertising and personal selling.customer conviction is mostly influenced by personal selling.closing the sale is also influenced by personal selling and sales promotion.reordering is also mostly affected bypersonal selling and sales promotion and somewhat by reminder advertising. Product life cycle stage

The promotional tools also vary in cost effectiveness at different stages of a product life cycle: a. In the introduction stage,advertising and publicity have highest cost effectiveness followed by personal selling in order to gain distribution coverage and sales promotion to induce trial b. At the growth stage all the tools can be toned down because demand has its own momentum through word of mouth. c. In the maturity stage,sales promotion,advertising and personal selling all grow more important in that order d. In the decline stage,sales promotion continues strong,advertising and publicity are reduced and sales people give the product only minimal attention Companys market rank

After implementing the promotional plan,the communicator must measure its impact on target audience. Members of the target audience are asked whether they recognise or recall their message,how many tims they saw it,what points they recall,how they felt about the message and the previous and current attitudes towards the company. The communicator should also collect behaviour measures of audience response,such as how many people bought the product,liked it and talked to others about it.

Q4 (A). Categories of services (short note) Ans- services can be categorised under the following heads: Nature of the service

Who or what is the direct recepitient of the service,for eg,health care,passenger transportation,beauty salons,restaurents,etc are such types af services which are directed at peoples bodies. Education,broadcasting,theatres,museums,etc are the services directed at peoples mind.freight transportation,laundry and drycleaning,lawn care,etc are the services which are directed at goods and other physical possessions of people and whereas services like banking,accounting,securities and insurance have an intangible aspectin them. Type of relationship the service organisation has with the customer

This is further sub-categorised into: 1.whether or not the service provider has some kind of formal relationship with the service provider. Eg)banking,insurance,college enrolment,trade association,telephone subscribtion,etc. 2.whether the service itself is provided continuously or in discrete transactions. Eg)car rental,mail service,payphone,theatre,restaurant,etc. Nature of demand and supply of service

Some service industries face steady demand for their services whereas others encounter significant fluctuations.the time perishability of service capacity creates a challengefor the service manager.this is because services cannot be produced and stored as inventory for future sale.but the extent of demand and supply imbalances varies across industries. Methods of service delivery

The methods by which services is delivered to customerscould be yet another area where a change of marketing strategy could pay dividends

Q4 (B).Industrial Marketing. (short note) Ans. Industrial goods marketing means marketing of Industrial Goods which are required for the conduct of manufacturing activities. Industrial goods are not for direct consumption like consumer goods. Industrial goods include raw wood and materials, machinery, machine parts, fabricated materials, machine tools, spare parts, operating supplies, accessory equipment, essential supplies and even other business services such as banking, insurance, a repair service and consultancy services which are used in the manufacturing activities. The main features of industrial goods marketing are: Marketing is one-to-one in nature. It is relatively easy for the seller to identify a prospective customer and to build a face-to-face relationship. Highly professional and trained people in buying processes are involved. In many cases two or three decision makers have to be considered in purchasing industrial products. High value considered purchase. Purchase decision is typically made by a group of people not one person. Often the buying/selling process is complex and includes many stages (for example; request for expression of interest, request for tender, selection process, awarding of tender, contract negotiations, and signing of final contract). Selling activities involve long processes of prospecting, qualifying, wooing, making representations, preparing tenders, developing strategies and contract negotiations.

a. b.

c. d. e.

f.

Q4 (C).Marketing vs. Selling (short note)

Point of difference 1. Meaning

2. Aim

Marketing Marketing directs wants satisfying goods and services to present and potential customers through exchange process. Marketing concentrates on the satisfaction of consumers. Marketing is consumer oriented. Marketing is based on demand forecasting, product planning and research and development. The cost of production and distribution determine the price in sale whereas in marketing the cost of marketing demand, consumer preference and competition determine the price. Marketing aims at profit maximisation by giving service to the consumers. Therefore, profit is secondary in marketing. Marketing gives more importance to marketing research. Marketing looks at consumers as a heterogeneous group having similar buying habits, needs and wants.

Selling Selling directs the flow of goods and services from producer to consumers.

3. Orientation 4. Basis

Selling concentrates on how to sell the goods and earn profit from the sale. Selling is production oriented. Selling is based on the need to convert goods into cash.

5. Consumers Place

Selling views consumers as the last link in the business whereas marketing views the consumer as the purpose of the business.

6. Role of Profit

Selling aims at profit maximisation through raising the volume of sales and therefore profit is primary in selling. Selling gives less importance to marketing research. On the other hand selling looks at consumers as a homogeneous group having similar buying habits, needs and wants.

7. Importance

8. Target