SUBJECT CODE:- MB0046

SUBJECT NAME:- Marketing Management

Q.1:-A bran i! a "#m$#!ite !et #% be&ie%! an a!!#"iati#n! in t'e min #% "#n!(mer!. )n bran
e*e&#$ment+ a! a $art #% braning !trateg, e"i!i#n+ t'e bran manager "an e"ie t# "reate ne-
bran e&ement! %#r t'e ne- $r#("t!+ a$$&, !#me #% t'e e.i!ting bran e&ement! t# t'e ne- $r#("t+
#r (!e a "#mbinati#n #% e.i!ting an ne- bran e&ement! t# t'e e.i!ting an ne- $r#("t!. E.$&ain
t'e i%%erent braning !trategie! (!e b, t'e "#m$anie! %#r t'eir range #% $r#("t!.
a/De%inati#n #% Bran0
b/A*antage! #% Bran0
"/E.$&anati#n #% i%%erent braning !trategie! a#$te b, "#m$anie!
ANS.1:-
a/ A traditional defnition of brand stands as a name, word, mark, symbol,
device, or a combination thereof, used to identify some product or service
of one seller and to diferentiate them from those of the competitors. The
defnition clearly focuses on the function of a brand, that is, to identify,
irrespective of the specifc means employed for the identifcation. A
modern defnition talks about the brand as a vehicle for delivering a
certain value to the consumers. Hence, a brand is a mental patent and set
of associations that delivers a set of functional and emotional value to the
consumer in a unique way as compared to others in the business.
b) Advantages
The following are the advantages of branding.
a! A brand promises and delivers a high level of assurance to consumers.
b! A brand serves as an assurance to the customer about the product
performance. A brand helps customers to identify the product on the shelf
and helps in making an informed choice.
c! A brand as a symbol of status and social signifcance gives you
psychological satisfaction.
d! The brand speaks about the product"s attributes and how they perform,
about the brand name and what it stands for and about the company
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associated with a brand. Hence, for a consumer, the brand aids decision
making by building trust, familiarity, and assurance of a certain standard.
c) 1. Individual branding $n this case, the company adopts a separate
brand name for each product it ofers. %or e&ample, Hindustan 'ever
markets its range of toothpastes by diferent brand names such as (lose)
up, *epsodent, *epsodent)+, and ,ew *epsodent. 'ikewise, it ofers
bathing soaps in diferent brand names such as 'iril, -e&ona, 'u&, 'ifebouy
*lus, and 'ifebouy +old. The ma.or advantage of individual branding is that
if one brand loses its market, the others may ofset sales in the particular
product category. However, the company has to spend a lot of money and
pursue enormous promotional eforts to position each brand in the
consumer/s mind. 'arge multinationals such as Hindustan 'ever, *roctor
and +amble, etc. follow individual branding strategy.
2. Family branding This is another type of branding strategy followed
by some companies which have developed their family names. %or
e&ample, +odre. is a family name used for all its products. 'ikewise, *onds
uses its name for all products that include shampoos, talcum powders, and
creams. The ma.or advantage of using family name for products is that it
minimises advertising and other promotional costs. 0ut, if one product in
the group is perceived negatively in terms of quality, or in other aspects,
by consumers, it may pull down the entire range of products. Hence,
companies which use family names for branding must be cautious.
3. Corporate umbrella branding (ompanies such as Tata, (oke, and
*epsi are not only using individual brand name for the range of products
they market but also use a corporate umbrella cover for their brands. $t is
the corporate logo, symbol, or trademark which provides protection to the
individual brand. The idea is that the corporate name symboli1es trust and
confdence to the buyers.
Q.1:-De!"ribe t'e internati#na& market entr, !trategie! in brie%.
a/ J#int 2entr(re!
b/ Strategi" A&&ian"e!
"/ Dire"t )n*e!tment
/ C#ntra"t Man(%a"t(ring
e/ %ran"'i!ing
2
ANS.2:There are two methods to entry into foreign markets. They are
indirect e&porting and direct e&porting. Apart from direct and indirect
e&porting, the other popular methods of entering international markets are3
4oint ventures
5trategic alliances
6irect $nvestment
(ontract 7anufacturing
%rachising
!oint venture
A .oint venture is a strategic alliance where two or more parties, usually
businesses, form a partnership to share markets, intellectual property,
assets, knowledge, and profts. A .oint venture difers from a merger, in the
sense that there is no transfer of ownership in the deal. %or e&ample, 0est
*rice 7odern 8holesale is a .oint venture between 8al)7art and 0harti
9nterprises. American retail giant 8al)7art chose this route to enter the
$ndian market.
Strategic alliance
A strategic alliance is formed when two or more businesses .oin together
for a set period of time. The companies, generally, are not in direct
competition, but have similar products or services that are directed
towards the same target group. %or e&ample, Tata 7otors and %iat entered
into a strategic alliance to cooperate in areas like research and
development, and marketing.
"irect inve#tment
Through %oreign 6irect $nvestment a frm invests directly in facilities to
produce and:or market a product in a foreign country. %or e&ample, in the
early #;<=/s, Honda, a 4apanese automobile company, built an assembly
plant in >hio and began to produce cars for the ,orth American market.
These cars were substitutes for imports from 4apan. >nce a frm undertakes
%6$, it becomes a 7ultinational 9nterprise The meaning of 7ultinational
being ?more than one country@!.
Contract manu$acturing
(ontract manufacturing is a process that establishes a working agreement
between two companies. As part of the agreement, one company will
custom produce parts or other materials on behalf of their client. $n most
cases, the manufacturer will also handle the ordering and shipment
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processes for the client. As a result, the client does not have to maintain
manufacturing facilities, purchase raw materials, or hire labour in order to
produce the fnished goods. (ompanies like 6)'ink, TB5 9lectronics, and
8e* *eripherals ofer contract manufacturing services.
Franc%i#ing
%ranchising is basically a specialised form of licensing in which the
franchiser not only sells intangible property normally a trademark! to the
franchisee, but also insists the franchisee to abide by strict rules with
respect to how business is done. The franchiser will also often assist the
franchisee to run the business on an ongoing basis. 8hile licensing works
well for manufacturers, franchising is often suited to the global e&pansion
eforts of service and retailing. 7c6onald/s, Tricon +lobal -estaurants the
parent of *i11a Hut, Centucky %ried (hicken, and Taco 0ell!, and Hilton
Hotels have all used franchising to build a presence in foreign markets.
Q.3:-E.$&ain t'e "&a!!i%i"ati#n #% market ba!e #n nat(re #% C#m$etiti#n an area.
a/ De%initi#n #% Market
b/ C&a!!i%i"ati#n #% market ba!e #n nat(re #% C#nm$etiti#n an Area
ANS.3:
a) A market was defned as a place where buyers, sellers, resellers, and
intermediaries met for e&change of goods and services.
b) &ar'et# ba#ed on t%e nature o$ competition D The most important
form of market classifcation is based on the nature of competition,i.e., the
buyer)seller interaction. >n this basis, the markets can be classifed as3
(er$ect competition This is a kind of market structure which
reEects a perfect degree of competition and where a single price
prevails. The concept of perfect competition was propounded by 6r.
Alfred 7arshall. $t is a free)market situation in which the following
conditions are fulflled3
i! buyers and sellers are numerous but a few have a degree of individual
control over the pricesF
ii! buyers and sellers attempt to ma&imise their proft income!F
iii! buyers and sellers are free to get in or leave the marketF
G
iv! buyers and sellers are endowed with the information regarding
availability, price, and quality of goods being tradedF and
v! goods of a specifc category are homogeneous, hence they are
interchangeable for one another. This market structure is also called
perfect market or pure competition.
Imper$ect mar'et $n a market category where individual frms
e&ercise control over the price, there are fewer buyers and sellers,
and the frms do not sell identical products. These markets are
further divided into three parts as shown in fgure
)ype# o$ Imper$ect &ar'et
&onopoly A kind of market structure where there is a single seller
and there is no close substitute for the product that is ofered by the
seller. The price of the product is set by the single seller price is
often regulated by some regulatory authority like the government!.
There are four key features of monopoly3 i! there is a single frm that
sells all the output in a market, ii! the frm or the seller ofers a
unique product, iii! there are restrictions to enter and e&it the
industry, and iv! other potential producers do not have access to
the specialised information about the production techniques. A few
e&amples of monopoly are local water utility, local electricity utility,
railways, etc.
*ligopoly A kind of market structure where there are a few sellers
in the market and they control the supply of a product in the market.
9ach seller has some degree of control over the price. There are
three key features of oligopoly3 i! the industry is controlled by a
small number of large frms, ii! the frms sell either homogeneous or
diferentiated products, and iii! there are signifcant barriers to enter
the industry. A few e&amples of oligopoly are the petroleum,
steel,and aluminium industry.
&onopoli#tic competition A kind of market structure where
there are many sellers but not as many as in a perfect market! and
they produce somewhat diferent products that are close substitutes
of each other. There are four key features of monopolistic
competition3 i! there are large numbers of small frms, ii! they sell
similar but not homogeneous products, iii! there is relative freedom
H
$mperfect 7arket
7onopoly >ligopoly 7onopolistic
competition
of entry and e&it, and iv! the producers have e&tensive knowledge
of technology and prices.
&ar'et# ba#ed on area 8hen area is used as a basis of market
classifcation, the markets can be categorised into the following types3
+i) ,ocal mar'et# This market includes the client or customers who
purchase the product in the region or area where it is brought
forth.7arketing managers must know the target customers, their location,
and the distance they are willing to travel to purchase the product. The
local market includes customers located within the region where the
products or services are available. %or e&ample, vegetable market,
hairdressers, tailors, etc.
+ii) National mar'et# This market encompasses domestic marketplace
for goods and services functioning within the borders and is governed by
the regulations of a particular country. The health of national markets can
be a deciding factor for business success. %or e&ample, spice market
located in Cerala, rice market located in Colkata, etc.
+iii) International mar'et# This market is for products and services
that are bought by consumers residing outside the national boundaries of
the country to which the manufacturing company belongs. %or e&ample, for
companies like Tata 7otors, -eliance, 8ipro, etc., all countries e&cept $ndia
constitute international market.
Q.4:-4er!#na& !e&&ing %#"(!e! in #n 5$er!#na&6 #r 5#ne t# #ne6 !e&&ing. )t in*#&*e! an ini*i(a&
!a&e!man #r a !a&e! team e!tab&i!'ing an b(i&ing a $r#%itab&e re&ati#n!'i$ -it' "(!t#mer! #*er a
$eri# #% time t'r#(g' a !erie! #% !te$!. E.$&ain t'e !te$! in t'e $er!#na& !e&&ing $r#"e!! -'i"' 'e&$!
in t'e !(""e!!%(& !a&e!.
a/De%initi#n #% 4er!#na& Se&&ing
b/E.$&ainti#n #% !te$ in t'e $er!#na& !e&&ing $r#"e!!
ANS.-:
a) (er#onal Selling:*ersonal selling is an activity which involves a
face)to)face interaction with the customers wherein there is a quick
response and personal confrontation.
b) (er#onal Selling (roce##
*rocess or steps in personal selling include the following3
1. (ro#pecting This is the beginning of sales process, which covers
searching for customers with potential demand.
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2. )argeting This is the process of deciding how to allocate sales time
among prospects and e&isting customers.
3. (reapproac% $n this step, the salesperson plans methods to
approach the customers and to collect company and customer information.
-. Communication and approac% This is the process of communicating
and contacting the customers. $t involves developing a system to greet the
customers and meet them for the sale. Homer 0. 5mith has recommended
diferent approaches. The following are some proven techniques3
Ask questions D Juestions should preferably be relevant to sales
presentation.
Kse a referral D 5omeone favourably known to the potential
customer.
>fer a beneft or service D This can be quite efective if relevant to
customer/s need.
(omplement the prospect D $t is a good way to establish rapport if
there is anything that the prospect has achieved.
.. (re#entation and demon#tration $n this stage, the salesperson
gives a sales presentation and if required demonstrates features,
advantages, and benefts and value propositions of the product.
/. Cu#tomer ob0ection %andling (ustomers always pose ob.ections
during presentations or when asked to order. *sychological resistance and
logical resistance are the two types of resistance seen at this stage. The
psychological resistance includes resistance to interference, preference for
established brands, apathy, reluctance to give up something, etc. The
logical resistance includes ob.ections to price, delivery schedule, or certain
companies.
1. Clo#ing 5ome salespeople do not get to this stage or do not do it well.
The salespeople try to close sales after handling the customer ob.ections.
2. Follo3 up and maintenance The salesman does follow up and
retains the relationship with customers to obtain repeated orders and
referrals and ensures customer satisfaction and repeated business. $n the
case of consumer durables, salespeople take care of maintenance.
Q.7:-8i!t #(t t'e *ari#(! met'#! #% $ri"ing an e.$&ain t'e $r#("t mi. $ri"ing !trategie! in etai&
-it' e.am$&e!.
a/ De%ine 4ri"ing
b/ 8i!t #% *ari#(! met'# #% $ri"ing
"/ 4r#("t mi. $ri"ing !trategie! -it' e.am$&e!
L
ANS..:a) *rice) The term price is the quantity of payment or
compensation given by one party to another in return for goods or services
b) ,i#t o$ 4ariou# met%od o$ (ricing
(ost)plus or full)cost pricing
7ark)up price
0reak)even pricing target return price!
7arginal cost pricing
c) (roduct mi5 pricing #trategie# 3it% e5ample#
$n various corporations where a range or line of products is sold, the price
of individual item must consider the prices of other products in the range.
The several forms of product mi& pricing are as follows3
i! *roduct)line pricing D $n this method, the prices of diferent products in a
product line are being set on the basis of cost diferences among products,
various features assessment by customers, and competitor/s prices. The
price steps must consider cost diferences among products in the line,
various features assessment by customer, also competitor/s prices. %or
e&ample, a soap manufacturer makes two diferent types of soaps. The
second soap needs more labour cost but less material cost per cake than
the frst soap. Also the second soap takes more overhead than the frst
one. Table depicts the specifc costs per cake for both the soaps.
*roduct)line (ost 5tructure
(ost 5tructure 5oap # in rs.! 5oap 2 in rs.!
7aterials cost 2.== #.==
'abour (ost #.== #.H=
>verhead (ost =.H= #.==
%ull (ost #M2MA! A.H= A.H=
$ncremental (ost #M2! A.== 2.H=
(onversion (ost 2MA! #.H= 2.H=
Alternative *roduct)line *rices
7ark)up 5oap #in rs.! 5oap 2in rs.!
%ull (ost *ricing #=N A.<H A.<H
$ncremental (ost
*ricing
2=N A.I= A.==
(onversion cost
pricing
;=N 2.<H G.LH
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ii! >ptional features pricing D $t focuses on pricing of additional aspects
with the main products, e.g., pricing of air conditioners, personal
computers, automobiles, etc. These supplementary aspects or features a
purchaser may or may not prefer to add to the main product purchased.
The main stripped)down product holds a low price, while additional
components/ margin is higher. 9.g., various computer and auto companies
keep a lower price for the basic model while for further parts such as '(6
monitor, larger -A7, power windows, power steering, etc., are charged
e&tra.
iii! (aptive)product pricing D *roducts that require the use of ancillary
products are produced by certain companies e.g, ra1ors, ink.et or laser
printers. Barious types of ra1ors are manufactured by +illette and for each
type the company has special blades that ft a particular type of ra1or. The
ra1or price is low, however, the margins on blades are high. 7anufacturers
of ink.et or laser printer sell printers at low initial price but their ink or toner
cartridges prices are higher for earning higher margins
iv! Two)part pricing D This method is widespread among service providing
companies. %or providing basic service, they charge a f&ed price and a
variable usage rate. 9.g., a monthly f&ed price is charged by telephone
service providers and variable per call charges for calls beyond a specifc
number.
v! 0y)product pricing D $t is setting a price for by)products for making main
product/s price more competitive. $n this, the producer will seek a market
for the by)products and usually accept any price that is higher than the
cost of storing and delivering them. 9.g, processed meat meant for
individual consumption produces by)products, which can be destined for
cats or dogs. The manufacturer of meat may seek market for these by)
products and might accept price for them which covers storage and
delivering
vi! *roduct)bundling pricing D $n this pricing, a bundle combining several
products is being ofered at a reduced price. The theatres and sports teams
where season tickets are sold at less than the cost of single tickets
popularly use this type of pricing.
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Q.6:-D# ,#( t'ink t'e arg(ment #% !#me t'e#ri!t! t'at t'e traiti#na& 4! are n#t en#(g'
%#r !er*i"e! marketing0 9i*e !(itab&e e.am$&e! t# $r#*e ,#(r $#int.
a/De%ine Ser*i"e Marketing
b/E.$&anati#n #% 4$6!
"/E.$&anati#n #% Aiti#na& 3 $6!
ANS./: a) 5ervices marketing is a sub feld of marketing which covers the
marketing of both goods and services. +oods marketing includes the
marketing of fast moving consumer goods %7(+! and durables. 5ervices
marketing typically refers to the marketing of both business to consumer
02(! and business to business 020! services. (ommon e&amples of
service marketing are found in telecommunications, air travel, health care,
fnancial services, all types of hospitality services, car rental services, and
professional services.
65planation o$ -p7#
A marketing mi& can be referred to as a planned mi& of the controllable
elements of a product"s marketing plan, commonly termed as G*s3 product,
price, place, and promotion.
*roduct
According to *hilip Cotler, ?A product is anything that can be ofered to a
market for attention, acquisition, use, or consumption that might satisfy a
need or want.@ $n efect, according to this defnition, products include
physical products, services, persons, places, organisations, and ideas.
*rice
The second element is the price, which impacts the volume of sales. $t is a
value that will purchase a specifc quantity, weight, or other measure of a
product. %or e&ample, you buy a packet of chips which is net #=grams in
weight for O #=, this value O #= denotes the price of the product.
%irms have to consider some factors while deciding the price of a product.
These factors are3
>b.ectives of business
The competitive environment
*roduct and promotional policies of the frm
,ature of price sensitivity
#=
(onEicting interest between manufacturer and intermediaries
-outine pricing decisions
Active entry of non)business groups in pricing decisions
*lace
This is another key marketing mi& tool, which encompasses the various
activities the company attempts to make the product available to the
target customers. *lace mi& deals with the physical distribution of products
at the right time and right place. %or e&ample, a customer usually
purchases toiletries from nearby retail stores. 5o, toiletry marketers must
ensure that their products are available at almost every nook and corner
store.
*romotion
This includes the methods to communicate the features and benefts of the
products or services to its target customers. 5ome common methods
include advertising, sales promotion, direct selling, public relations, and
direct marketing. %or e&ample, Toyota promotes its brands by advertising,
sales promotions, public relations, sponsorships, etc.
65planation o$ Additional 3p7#
The traditional G*s were not enough to market services. (onsidering the
increasing role of services in the economy and customer)orientation,
additional A*s were added to the marketing mi&. These A*s are people,
process, and physical evidence.
*eople
This is a very important element of the modern marketing mi& or the
service mi&. An essential ingredient to any service provision is the use of
appropriate staf and people. -ecruiting the right staf and training them
appropriately to delivery their services are very essential if the
organisation wants to obtain a competitive advantage.
*rocess
This refers to the way in which a service is delivered to the end customer.
%or e&ample, when you go to 7c6onalds drive)through, you are frst
greeted by an attendant who asks you for your order. Then, he:she notes
down your order and informs a crew member about it. 0y the time you pay
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the billed amount, your order arrives. Pou take your order and leave. This
represents a service delivery process.
*hysical evidence
*hysical evidence is the tangible part of a service. 5ervice customers
e&perience a greater perceived risk as they cannot rate a particular service
until it is consumed. Therefore, service providers should try to attach an
element of tangibility to their service ofering.
*hysical evidence can include web pages, paperwork such as invoices,
tickets, and despatch notes!, brochures, furnishings, ambience, signage
such as those on aircraft and retail stores!, brand logos, uniform of
employees, business cards, and the building itself.
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