MS-06 Solved Assignment

For more IGNOU Solved Assignments visit www.IGNOUHelp.
in
ASSIGNMENT
Course Code
:
MS - 06
Course Title
:
Marketing for Managers
Assignment Code
:
MS-06/TMA/SEM -
II/ Coverage
:
All Blocks
1. (a) ―Marketing in the performance of business activities that directs the flow of
goods and services from the produces to consumers‖. Discuss the above statement by taking
two suitable examples of your choice.
(b) Discuss the concept of service and report on the reasons for the growth of the service
sector.
2. (a) What are the various elements of marketing mix? Explain each of there
elements and their importance in the marketing planning process of a consumer durable
company manufacturing room air conditioner.
(b) Discuss the procedure of conducting marketing research in the Indian Context.
3. (a) Who is a consumer? Define consumer behavior and discuss why a knowledge of
consumer behavior in essential for Marketers.
(b) Discuss Product Life Cycle concept and elaborate on the importance of PLC as a tool
for monitoring and nurturing a the brand. Illustrate with suitable examples.
4. (a) What do you understand by the term Marketing Communication and its role in
the promotion of a firms product or service. Discuss with two suitable examples one choosing
from FMCG & other from a service offering.
(b) Discuss the importance and relevance of sales and distribution function in a
manufacturing and marketing organization of your choice.
===============================================================
======
For more IGNOU Solved Assignments visit www.IGNOUHelp.in
1. (a) “Marketing in the performance

of business activities that directs
the flow of goods and services from
the
produces
to
consumers”.
Discuss the above statement by
taking two suitable examples of
your choice.
MARKETING includes identifying unmet needs;
producing products and services to meet those
needs: and pricing, distributing, and promoting
those products and services to produce a profit.
Philip Kotler defines marketing as ‗satisfying
needs and wants through an exchange process’
Marketing consists of four general activities:
1. Identifying and selecting the type of customer
that the business will cultivate, learning his needs
and desires;
2. Designing products or services that the firm
can sell at a profit in conformity with customers
desires;
3. Persuading customers to buy at the firm‘s
offerings;
4. Storing, moving, and displaying goods after they
leave the production site.
2. The basis for any marketing activity is
exchange. Exchange is the process by
which two or more parties give something
of value to each other to satisfy each party‘s
perceived needs. This "something of value"
can be a product, service, or idea - of a
person, such as an entertainer, athlete, or
politician.
3. The criteria needed for an exchange
to occur:
Must have something of value to exchange
Need to be able to communicate
Must be able to exchange (under 21
drinking)
Must want to exchange
At least 2 people needed for an exchange to
occur
4. The exchange process creates Utility. Utility
is the satisfaction, value, or usefulness a
user receives from a good or a service. When

you purchase an automobile, you give up
less (in $s) than the value of the car (to
you)...the ability to get you from A to B,
safely, in a timely manner etc.
The marketing concept is the philosophy that
firms should analyze the needs of their
customers and then make decisions to satisfy
those needs, better than the competition. Today
most firms have adopted the marketing concept,
but this has not always been the case. After
World War II, the variety of products increased
and hard selling no longer could be relied upon
to generate sales. With increased discretionary
income, customers could afford to be selective
and buy only those products that precisely met
their changing needs, and these needs were not
immediately obvious.
Without marketing, potential customers may

not be aware of the product or service your
business is selling. Without customers, your
business may meet its demise. Marketing
plays a vital role in business because planning

how you are going to reach potential
customers helps to ensure that people are
aware of your product or service and that you
have an opportunity to convert that awareness
into paying customers.
Creates a Guide
The achievement of written goals occurs more
often than goals that are not written down.
Marketing planning serves as a written guide
for a business to follow in promoting its
products and services. Planning the marketing
strategies ahead of time allows companies to
be proactively involved in the success of its

sales. Because the marketing plan is a portion
of the overall business plan, a company can
align marketing strategies during the planning
stages with its overall business goals.
Integrates the Business
Planning marketing efforts involves more than
the marketing manager. Marketing planning
integrates all of the aspects of a business,
ranging from how products and services are
priced to the financials of the company. As a
result, marketing planning brings upper
management and the heads of departments
such as finance together. Small business

owners may be both the marketing
manager and upper management, but
marketing planning still plays the role of
integrating a business requiring you to
analyze your business from all of the
different vantage points: finance,
operations, legal and marketing.
Forecasts
The marketing planning process also plays a
forecasting role because it requires you to
estimate sales resulting from each marketing
effort. A company operations department
uses sales forecasts to create a production
schedule. The finance department uses these
forecasts to create budgets, while the human
resources department looks to sales
forecasts to plan for employees. A small
business also requires these forecasts to plan
for other areas in the business.
Company Product/Service
An effective marketing plan takes a close look
at a company products and services and
compares these to products and services from
competitors in the market sector. The
marketing department must review the
company products in terms of quality,

customer interest and customer response,
among other qualities. An appreciation of
these elements helps a company develop new

products and improve existing products as
the company pursues its goals.
Pricing
The marketing plan must keep in mind the
company pricing position for its own products
and services. Marketing professionals run
pricing comparisons of other company
products and services within the marketing
sector and then compare these prices to their
own prices. The results help the company
develop a pricing plan that serves two
primary purposes: enable the company to
price itself strategically within the market and
assist the company in reaching its own
financial goals.
Planning clearly
Define the objectives and priorities of your
business
Identify your products and services, prices
and the profit margins of each
Determine your placement, market position,
industry and competition
Generate a unique selling proposition

Identify the ideal customer profile and how
to locate such customers
Plan optimal promotional strategies and tactics
Identify strengths, weaknesses, opportunities and
threats
Determine the optimal marketing budget
Estimate the marketing return on investment
(ROI)
Evaluate the effectiveness of your marketing
campaigns
Include an action list with timeframes
and allocation of resources
The Marketing Plan is a highly detailed, heavily researched and,

hopefully, well written report that many inside and possibly
outside the organization will evaluate. It is an essential
document for both large corporate marketing departments and
for startup companies. Essentially the Marketing Plan:
forces the marketing personnel to look internally in order to

fully understand the results of past marketing decisions.
forces the marketing personnel to look externally in
order to fully understand the market in which they operate.
sets future goals and provides direction for future
marketing efforts that everyone within the
organization should understand and support.
is a key component in obtaining funding to pursue new
initiatives.
The Marketing Plan is generally undertaken for one of the
following reasons:
Needed as part of the yearly planning process within
the marketing functional area.
Needed for a specialized strategy to introduce something new,
such as new product planning, entering new markets, or
trying a new strategy to fix an existing problem.
Is a component within an overall business plan, such as a
new business proposal to the financial community.
There are many ways to develop and format a marketing plan (you
can find more ideas in the KnowThis Marketing Plan topic
area). The approach taken here is to present a 6-Part plan that includes:
Part 1: Purpose and Mission
Part 2: Situational Analysis
Product, Market Analysis
Distribution Analysis
Competitor Analysis
Financial Analysis
Other Analysis
Part 3: Marketing Strategy and Objectives
Financial Objectives
Marketing Objectives
Part 4: Tactical Programs
Markets
Product
Promotion
Distribution
Pricing
Others
Part 5: Budgets,Performance Analysis, Implementation
Budgeting and Analysis
Implementation
Part 6: Additional Considerations
This plan is aimed at individual products and product lines,

however, it can be adapted fairly easily for use in planning one
or more strategic business units (SBU). The page length
suggested for each section represents a single-spaced typed
format for a plan focused on a single product. Obviously for
multi-product plans lengths will be somewhat longer.
Part 1: Purpose and Mission
Part 1 of the plan is designed to provide the reader with the

necessary information to fully understand the purpose of the
marketing plan. This part also includes organizational background
information, which may be particularly important if the audience
for the plan is not familiar with the company, such as potential
financial backers. Some of the information, in particular the
mission statement, may require the input of upper-management.
The information in this part will prove useful later in the plan as a
point of reference for material that will be introduced (e.g., may
help explain pricing decisions). In cases in which there are
separately operated divisions or SBU, there may also be mission
statements for each. (Length: one page or less)
1. Purpose of the Marketing Plan
Offer brief explanation for why this plan was produced
e.g., introduce new product, enter new markets,

continue growth of existing product, yearly review and
planning document, etc.
Suggest what may be done with the information
contained in the plan
e.g., set targets to be achieved in the next
year, represents a departmental report to be
included in larger business or strategic plan, etc.
2. Mission Statement
For larger firms this may already exist in a public way (e.g.,
found in annual report, found on corporate website) but for
many others this may need to be formulated.
The mission statement consists of a short, finely-honed
paragraph that considers the following issues:
Identifies a stable (i.e., not dramatically changing
every year), long-run vision of the organization that can
answer such questions as:
Why is the company in business?
What markets do we serve and why do we serve
these markets?
In general terms, what are the main benefits we

offer our customers?
e.g., a low price software provider may state they
offer ―practical and highly affordable business
solutions‖
What does this company want to be known for?
What is the company out to prove to the industry,
customers, partners, employees, etc.?
What is the general corporate philosophy for doing

business?
What products/services does the company offer?
In developing the vision presented in the mission
statement consider:
Company History
How company started and major events of the
company, products, markets served, etc.
Resources and Competencies
Consider what the company currently
possesses by answering the following:
What are we good at?
What is special about us compared to
current and future competitors (in general
terms do not need to mention names)?
What do we do that gives us a competitive
advantage?
Consider the questions above in term
of: people, products, financial position,
technical and research capabilities,
partnership/supply chain relations, others
Environment
Consider the conditions in which company
operates including:
physical (e.g., facilities), equipment,
political regulatory, competitive, economic,
technological, others
The situational analysis is designed to take a snapshot of where

things stand at the time the plan is presented.
This part of the Marketing Plan is extremely important and quite
time consuming. For many, finding the numbers may be
difficult, especially for those entering new markets
The situational analysis covers six key areas: product, target
market, distribution, competitors, financial and other issues.

1. Current Product Analysis
(May be able to skip this section if plan is for a new product and
no related products exist.) Provide detailed analysis of the
company‘s product(s). (Length: 1-2 pages).
Describe the company‘s current product(s) offerings in
terms of:
Product Attributes
Describe the main product features, major
benefits received by those using the
product, current branding strategies, etc.
Pricing
Describe pricing used at all distribution levels
such as pricing to final users and to distributors,
incentives offered, discounts, etc.
Distribution
Describe how the product is made accessible to
final users including channels used, major benefits
received by distributors, how product is shipped,
process for handling orders, etc.
Promotion
Describe promotional programs and strategies
in terms of advertising, sales promotion, personal
selling and public relations, how product is
currently positioned in the market, etc.

Services Offered
Describe support services provided to final users
and distributors before, during and after the sale
2. Describe the Current Target Market(s)

Examine in detail the company‘s current target market(s).
Obviously to do this section correctly takes a great deal
of customer-focused research. (Length: 2-3 pages).
Describe the target market approach:
What general strategy is used to reach targeted
customers? Generally approaches include:
mass market – aim to sell to a large broad
market segmentation approach – aim to selectively
target one (niche) or more markets
Describe demographic/psychographic profile of the market:
Profile criteria may include:
gender, income, age, occupation, education,
family life cycle, geographic region, lifestyle,

attitudes, purchasing characteristics, etc.
Describe the following characteristics of
targeted customers:
Needs/benefits sought by market
Product usage
Consider answers to these questions related
to customers using the product such as:
who is using the product?
why do they use the product?

when do they use the product?
how is the product used?
Product positioning
Evaluate how customers perceive the product in
relation to competitor‘s products or to other
solutions they use to solve their problems
Attitudes
What is the target market‘s attitude regarding
the company‘s product?
What is the target market‘s attitude regarding
the general product category?
i.e., exam the general attitude regarding
how products from all companies serve the
target market‘s needs
Describe the purchasing process:
How does the target market make their purchase?
What does the decision-making process involve?
What sources of information are sought?
What is a timeline for a purchase (e.g., impulse
vs. extended decision-making)?
Who makes the purchase?
Does user purchase or is other party
responsible (e.g., parent purchasing for children)?
Who or what may influence the
purchase? Provide market size estimates:
Keep in mind these are estimates for the market not
for a specific product

Provide size estimates for the potential
market What is the largest possible market if all
buy?
Provide estimates of size for the current
target market
What percent of the potential

market actually purchased?
Provide estimates of future growth rates
At least through the timeframe for the plan
(e.g., 1 year) but most likely longer (e.g., 3-5
year projections)
3. Describe Current Distributor Network (if appropriate)

Evaluate how the company‘s product(s) is distributed. Clearly
marketing plans for a service company may not have much
detail here but this section will most likely have some
relevance even for service firms (e.g., package delivery
services, online legal service, etc,). (Length: 2 pages).
Describe the channels/supply chain employed to sell
and deliver the product: (Note: internal sales force
discussion should appear under company promotion in
Current Product Analysis above.)
Options may include:
direct to customer
indirect via a distributor
combination of both
What are the needs/benefits sought by distributors?
Describe the product‘s role within the distributor

network: How is this product used within the distributor‘s
business?
How important is product within the distributor‘s
strategy?
How is product positioned?
e.g., how does distributor view product in relation
to competition
Attitudes and perceptions about company's
product(s) Purchase process
How does distributor network make their purchase?
Who or what influence distributor‘s purchases?
Demographics
Who makes up the distributor
network? types
size
geographic region
markets served

4. Competitive Analysis
Examine the main competitors serving the same target
market. Describe direct competitors in terms of:
Target markets served
Product attributes
Pricing
Promotion
Distribution including the distributor
network Services offered
Discuss competitor‘s strengths and weaknesses:
May need to consider much more than just marketing
issues such as:
financial standing
target market perception
R & D capabilities
Discuss competitive trends:
May need to include discussion of future competitive
threats
5. Financial Analysis for Product or Product Line

Much of this information can be handled within a graphical
format, such as tables and graphs, though a paragraph
explanation of each is generally required. Make sure to include
total dollar (or other currency) amounts as well as percentage
market share. For more detailed marketing plans or for plans
for seasonal products, providing monthly or even weekly sales
figures may be required. Provide a spreadsheet-style layout
showing detailed breakdown of marketing revenues and
expenses. (Length: 2-4 pages).
Current Sales Analysis
Overall industry sales and market share (for at
least the last year)
total market sales
total for company‘s product(s)

total for competition
By segments/product categories
total for segments/product categories
total for company‘s product(s)
total for competition
By Channels of Distribution
total for each channel
total for company‘s product(s) by
channel total for competition by channel
By Geographic Region
total for each region
total for company‘s product(s) by region
total for competition by region
Profitability Analysis
Revenues
For highly detailed plans break out into
categories as shown above in the Current Sales
Analysis section.
Marketing
Expenses Types:
Direct – those expenses that can be tied
to the product
Indirect or Proportional – generally
administrative or broad marketing expenses
that may be assigned to a product based on
some established criteria (e.g., a product‘s
percentage of overall company sales) Note:

not all companies follow this approach
For highly detailed plans break out into
categories as shown above in the Current
Sales Analysis section.
6. Environmental Problems and Opportunities

Describe trends, events, conditions that are external (usually
uncontrolled by the company) that may impact the company‘s
product(s) or the market. (Length: 1-2 pages)
Areas of consideration:
social and cultural
demographic
economic
technological
political
legal, regulatory, ethical
7. Product/Market Analysis Tools
In an effort to provide an easy to visualize summary of the
product(s) consider using one or more of the following commonly
used product/market analysis tools. (Length: 1 page)
Product Life Cycle Analysis

Boston Consulting Group Growth/Share Matrix
General Electric Market Attractiveness Matrix
8. Summary of Current Situation

Summarize all information in the Situational Analysis.
(Length: 1 page)
Provide a SWOT analysis for the company‘s product(s) that

includes:
strengths
weaknesses
opportunities
threats
Those reading a marketing plan need a clear picture of the

direction the product will take. Also, they want to see that
some accountability has been built into the plan so that the plan
is not just fluff but results in measurable actions. The best way
to provide this information is through a section devoted to
identifying the key strategies and objectives for the product(s).
This section consists of three major issues:
Marketing Strategy
Financial Objectives
Marketing Objectives
1. Marketing Strategy
In this section identify the general marketing strategy under which
this plan is being developed. It is very possible that a product will
follow more than one strategy (e.g., sell more of same product to
current customers but also find new customers in new markets).
Plan developers may get some guidance and also rationale for
strategy by examining results from the Situational Analysis. In
particular, planners may look to strategies that are suggested
within the scope of Product/Market Analysis Tools. Additionally,
planners should refer to the Mission Statement in Step 1 to insure
strategies are in line with how the company views itself. (Page
length: less than 1 page)
Strategies generally fall under one of the following (or in

some cases more than one) ideas:
Market growth
Higher market penetration
Sell more to same market (i.e., get current

customers to buy more or buy more frequently)
If overall market is growing this may
not necessarily mean a growth in overall
market share
If overall market is not growing this means
a growth in overall market share
Find new markets
Sell to markets or market segments
not previously targeted
Develop new products for existing customers
Develop new products for new customers
Market stability
Techniques to keep the status quo
Primarily used in times of economic decline or
market decline
Generally requires the taking of market
share from others in the industry
Cost control
Techniques to contain costs or operate
more effectively
Can work in combination with market growth or
market stability
Market exit
Techniques to depart a market
2. Financial Objectives
For many organizations the ultimate goal of the marketing plan
is the effect it will have on the bottom line. Measures reflect
income statement items and common ratios. (Page length: less
than 1 page)
Customer sales
by volume and growth
percentage by segments
Channel sales
by volume and growth
percentage by channel
Margins
Profitability
Ratios
use common financial ratios and other metrics
associated with marketing in the industry
3. Marketing Objectives
Marketing success can be measured on several non-financial
market metrics. These measure are important since these often
shed light on underlying conditions and circumstances facing the
company that are not easily seen within financial measures. For
instance, a company may report strong sales for a product but
market share information may suggest the product is losing
ground to competitors. The marketing objectives section will

indicate targets to be achieved across several marketing decision
areas. To add additional strength to this section include
marketing metrics where possible. (Page length: less than 1
page)
Target market
objectives market share
total
by segments
by channel
customers
total
number/percentage new
number/percentage retained
purchases
rate of purchases
size/volume of purchases
Promotional objectives
level of brand/company
awareness traffic building
(e.g., store traffic, website traffic)
product trials
(e.g. sales promotions, product
demonstrations) sales force
(e.g. cycle time, cost per call, closing
rate, customer visits, etc.)
Channel objectives
dealers
total
number/percentage new
number/percentage retained
order processing and delivery
on-time rate
shrinkage rate
correct order rate
Market research objectives
studies initiated
studies completed
R&D objectives
product development
Other objectives
partnerships developed
==========================================
TWO EXAMPLES
1.HINDUSTAN UNILEVER LTD
2.ITC CONSUMER PRODUCTS
THESE TWO COMPANIES FOLLOW

SIMILAR APPROACHES TO TAKE
THE COMPANY PRODUCTS TO THE
CONSUMER.
Part 4: Tactical Marketing Programs
This is the heart of the marketing plan. It contains descriptions of

detailed tactics to be carried out to achieve the objectives and
goals established in Step 3. It is typically the longest section of the
plan, often representing 50% or more of total page count.
In this section details and timetables are presented for six
key decision areas:
Target Markets
Product
Promotion
Pricing
Distribution
Other Areas
Preferably this section includes a brief summary of current
marketing decisions (see Situational Analysis) so readers of the plan can easily
compare what was planned to what is planned.

1. Target Market Issues

If the target market remains the same as what was identified in
the Situational Analysis then identifying the market will be
relatively easy though justification for continuing with this
market is required. For new markets a more detailed discussion
is needed. This section also includes the sales forecast which is
the driving force for all financial forecasts. Depending on the
depth of detail sought in the marketing plan, it may be a good
idea to include likelihood scenarios, such as best case, worst
case, and probable case, when developing the sales forecast.

(Length: 1-2 pages)
Target market description:
Brief summary of current target market
Identify planned changes:
Summarize changes:
Describe using profile (e.g., demographic,
psychographic, behavioral, etc. )
Describe how it will be accomplished
Justify planned changes:
Due to results
Due to research
Due to competition
Others
Describe target market
tactics: Objectives
Methods used change target
market Profile the target marketing
Product positioning:
Brief summary of product postition
How does target market view product in relation
to competitor‘s products?
Summarize changes in product positioning
Justify planned changes:
Due to results
Due to research
Due to competition
Others
Describe tactics to carryout
changes Objectives
e.g. what is desired position?
Methods used to change position
Sales forecast for each

product: Brief summary of
current sales Identify changes
Summarize changes in forecast
Justify forecast (i.e., figures determined based
on what information?)
Describe forecast
Objectives
Methods used to carry
out Numerical estimates
Categories:
Total
By segment(s)
By distribution channel
Others
consider likelihood scenario analysis
2. Product Issues
In this section discuss the decisions to be made for existing or

new products and services. Make sure to consider all aspects of
product decisions (branding, labeling, packaging) and not just
the product itself. Also, keep in mind product decisions can also
impact distributors (e.g., distributor‘s response to packaging
used to ship the product). (Length: 1-3 pages)
Brief summary of current product decisions for
users and distributors in terms of:
General description
e.g., category of product, product line
information
Features/attributes
offered list key features
main benefits target market receives
Branding
Packaging
Labeling
Summarize changes
For new products
How was product developed?
Stage in development process
Timetable for availability
Justify changes:
Due to results
Due to research
Due to competition
Others
Describe planned changes:
Identify changes directed to the targeted
user market:
Objectives:
e.g., modify existing products,
extend existing product line, develop
new products, develop new
uses/benefits for existing products,
delete current product, etc.
Features/attributes
offered Branding
Packaging
Labeling
Identify changes to the distributor
network: Objectives:
e.g., improve distribution, improve
protection, lower cost of handling, gain
distribution, etc.
Features/attributes
offered Branding
Packaging
Labeling
3. Promotion Issues
Describe the decisions related to how the product will be
promoted. In general, promotion consists of four major areas –
advertising, sales promotion, public relations and personal

selling – though not all may be used. Timetables for promotion
are important since certain types of promotions (e.g., magazine
ads, trade shows) require long lead times. Most information in
this section can be shown in tables and graphs. Each of the four
promotion areas is separated out, however, some planners find
it easier to combine the areas. For instance, the promotional
areas could be combined within special promotion programs,
such as Holiday Promotion Program, Summer Promotion
Program, etc. (Length: 1-4 pages)
Brief summary of current promotional decisions for

users and distributors in terms of:
General description for four promotional areas:
advertising
sales promotion
personal selling
public relations
Message/theme
Methods used:
Summarize methods used
Summarize spending for each method
Interrelation of four promotional areas
e.g., explain how advertising supports sales
promotion
Summarize changes
Justify changes:
Due to results
Due to research
Due to competition
Others
Describe planned changes:
Identify changes directed to the targeted user market:
General description for four promotional areas:
Objectives
Advertising - e.g., build general
awareness/inquiries/traffic, encourage
product trial, shift awareness (e.g., change
attitude), response to competitor
promotion, increase use or purchase rate,
support other market decisions (e.g.,
support sales force), general
corporate/product image building, etc.
Sales promotion - e.g., build inquires,
increase product trial, encourage repurchase,
build traffic, support other promotions
Personal selling - e.g., new account
development, account
support/maintenance, increase product trial,
encourage purchase/repurchase, build
traffic, support other promotions
Public relations - e.g., build general
product trial, shift awareness (e.g., change
attitude), respond to negative

news/perception, image building, prepare
markets for future activity (e.g., new
product)
Methods and message:

type and media used: e.g., ad type (e.g.,
television spots, Internet banner ads,
roadside billboards, direct mail, etc.) , sales
promotion type (e.g., coupons,
demonstrations, etc.), selling type (e.g.,
sales force, call center), pr type (e.g., press
release, pitch to magazines, etc.)
message conveyed
Spending and timetables
total
sub-divided by:
type
e.g., ad spending, sales force
compensation
media used
targeted users
Identify planned changes directed to the
distributor network:
General description
Objectives
Advertising - e.g., build general
awareness/inquiries, encourage product
handling, shift awareness (e.g., change
attitude), response to competitor promotion,
increase purchase rate, support other market
decisions (e.g., support sales force), general
corporate/product image building, etc.
Sales promotion - e.g., build inquires,
encouraging inventory building, support

other promotions, encourage handling of
new products, obtain distributor assistance
Personal Selling - e.g., new account
development, account
support/maintenance, encourage
purchase/repurchase/inventory building
Public Relations - e.g., build general
distribution trial, shift awareness (e.g.,

change attitude), respond to negative
news/perception, image building, prepare
markets for future activity (e.g., new
product)
Methods and message
type and media
message conveyed
total
sub-divided by:
type
media used
targeted distributor network
4. Distribution Issues
This marketing tactics section lays out the distribution plan for
the product or service. Distribution is a broad concept that
includes all activities and entities (e.g., value chain partners)
responsible for getting the product or service to the customer.

Distribution costs can represent a high portion of the overall
cost of the product so an efficient distribution system may be
critical for marketing success. (Length: 1-3 pages)
Brief summary of current distribution network/value
chain decisions:
Types of channels used
direct - e.g., direct via sales force, Internet, etc.
indirect - e.g., retailers, wholesalers, agents
combination
Level of market coverage
intensive - e.g., mass availability
selective - e.g., wide availability
exclusive - e.g., restricted availability
Outlets handling
product types
number/level of penetration
geographic location
Perceived product positioning
in relation to competitors
Distribution costs
Summarize changes
Justify changes:
Due to results
Due to research
Due to competition
Others
Describe planned
changes: Objectives
e.g., account development, gain
distributor support, account maintenance,
account penetration
Types of channels employed
Level of market coverage
Outlets handling product
Product positioning
Distribution costs
5. Pricing Issues
Pricing decisions can be a complicated undertaking that requires
knowledge of the market, competitors, economic conditions
and, of course, customers. For this section it is not necessary to
provide extensive financial evaluation of the pricing decision
since most of this will take place in Part 5 Budgeting and
Implementation, however, the use of tables and graphs may be
helpful in showing pricing trends and pricing decisions within
various categories. (Length: 1-2 pages)
Brief summary of current pricing decisions:
Describe pricing decisions by:
model/product
segment
channel
geography
other
Adjustments and Allowances
Discounting
Payment terms
Identify planned changes
Summarize changes
Justify changes:
Due to results
Due to research
Due to competition
Other
Describe planned
changes: Objectives
e.g., return on investment, market share, profit
level, price leadership, match competition, etc.
Factors affecting price setting
Cost factors
Fixed costs to be covered
Variable costs
Customer expectations
Company expectations
e.g., margins, ROI
Demand Considerations
market elasticity
position on product life

cycle Competition
Economic conditions
Legal/regulatory
considerations Pricing Options
list, preferred or suggest pricing
adjustments and allowances
sub-divided by:
product/model
customer
channel
other
6. Other Areas (optional)

In this section include a discussion of other marketing
decision areas. Two additional areas – customer support
service and marketing research – are provided though it is
possible others exist. (Length: 1 page or less)
Customer Support Services

Brief summary of current customer support services
decisions:
types offered:
e.g. call center, online, service desk, walk-
up, on-site
customers being serviced:
e.g., current customers, potential customers,

distributor network
service delivery method:
e.g., internally managed,
contracted, partnership arrangement
Summarize changes
Justify changes:
Due to results
Due to research
Due to competition
Other
Describe planned
changes Objectives
e.g., availability, response time,
satisfaction level
Types offered
Customers being serviced
Service delivery method
Market Research
Brief summary of current market research efforts
Projects
e.g., completed, in process, under
consideration
Research responsibility
e.g., internally managed,

contracted, partnership arrangement
Summarize changes
Justify changes:
Due to results
Due to research
Due to competition
Other
Describe planned
changes Objectives
e.g., customer analysis,
market analysis, competitor
analysis, exploratory
Projects
Service responsibility
Part 5: Budgeting, Performance Analysis and

Implementation
In many ways this part of the marketing plan is the area that
will ultimately ―sell‖ the plan to those who have the power to
give final approval. This step consists of three key topics:
Marketing Budget - presents a clear picture of the
financial implications of the plan
Performance Analysis - presents the expected results of
the plan including its financial impact
Implementation Schedule - shows timelines and

identify those responsible for performing tasks

Implementation
1. The Marketing Budget
This section should lay out spending requirements necessary for
meeting the plan‘s objectives. It is expected that several tables
and graphs will be presented along with narratives explaining
important budget issues. (Length: 2-3 pages)
Outline spending requirements for each tactical
marketing decision
Breakdown each tactical category
e.g., types of advertising, types of services
offered, marketing research expense, etc.
Show detailed spending timetable
by: Month
Year
Show spending by:
Product (if plan is for more than one)
Segment/Geographic area
Distribution Network/Channel
2. Performance Analysis
This section should contain financial implications of the plan
in terms of contributions to the company‘s bottom line.
HOWEVER, as was stated in the beginning of the Marketing
Plan tutorial, the marketing plan is generally a component of a
larger business plan. We do not cover a full financial discussion
such as a full balance sheet, income statement, detailed

ratio analysis, etc., though these could be included if
necessary. Again, numerous tables and graphs should be
presented. (Length: 2-3 pages)
Marketing Contribution
Show revenue versus expenses for marketing
decisions
Revenue should follow sales forecasts (see Part
4)
Show expenses by category (e.g., advertising)
and sub-category (e.g., types of advertising)
Breakdown by:
Product
Segment/Geographic area
Distribution Network/Channel
Breakeven Analysis:
Primarily for plans that involve the sale of
tangible products, the breakeven analysis indicates
the level of sales (generally described in terms of
number of units sold) required before the company
realizes positive marketing contribution.
Requires understanding of:
Fixed costs – cost that occur no matter level
of sales
Variable costs – cost that may change as level
of sales varies
Present as both graph and chart
Show breakeven point over level of sales volume
From zero through best scenario sales level

Show breakeven over
time Ratio Analysis
Limit to important marketing ratios that are
common to the industry
e.g., sales cycle, advertising-to-sales,
conversions from trial to purchase, website traffic-
to-search engine marketing, etc.

Implementation
3. Implementation
Provide a discussion of how and by whom the plan will be
carried out. (Length: 1-2 pages)
Detailed schedule of tasks and those responsible:
Breakdown by important tactical marketing decisions
Best presented in a Gantt chart format.

Identify those responsible for each important
task: If unsure leave generic
e.g., advertising agency, web hosting
company, distributors, etc.
Part 6: Additional Considerations
The final major section in the Marketing Plan prepares the

reader for potential situations that may affect the plan. In
this way the reader is provided with a somewhat more
balanced picture of what the company may face as it
attempts to implement the plan. (Length: 2-3 pages)
1. Internal Factors
Discuss company factors that may affect the plan
e.g., loss of funding sources, loss of key personnel,
current plan is linked to success to other products that
may not reach their goals, production problems, etc.
2. External Factors
Discuss outside factors that may affect the plan
e.g., supply chain problems, competitor
reaction, technological developments, legal
environment, societal changes, economic issues,
governmental concerns, etc.
3. Research Limitations
Discuss problems that may exist with the research
information on which assumptions are being made
e.g., difficult to find solid data on a certain subject
##########################
(b) Discuss the concept of service and

report on the reasons for the growth
of the service sector.
Concept of Service
Definition of service shapes every interaction
you have with your customers. If you hold the
common idea that service is only giving
customers what they want, you may well
paint yourself into a corner every time a

customer asks for something that is

impossible for you to provide. If, on the other
hand, you expand your definition of service to
include fulfilling the multitude of less obvious
customer needs, you will never encounter a
time when you can't provide your customers
with some level of service.
By addressing less obvious customer needs
such as listening with empathy to customers
when they have a problem or providing
options and alternatives when you can't give
customers exactly what they want, you widen
the gap between you and your competitors.
Six basic needs
Every time customers do business with you,
they are, without fully realizing it, scoring
you on how well you are doing, not only at
giving them what they want, but at fulfilling
six basic customer needs. Following is a list
of these needs:
Friendliness: The most basic of all
customer needs, friendliness is usually

associated with being greeted politely and
courteously.
Understanding and empathy: Customers
need to feel that the person providing the

service understands and appreciates their
circumstances and feelings without
critisism or judgment.
Fairness: The need to be treated fairly is
high up on most customers' list of needs.
Control: Control represents the customers'
need to feel as if they have an impact

on the way things turn out.
Options and alternatives: Customers

need to feel that other avenues are

available to getting what they
want accomplished.
Information: Customers need to be
educated and informed about the products,
policies, and procedures they encounter

when dealing with your company.
A popular piece of customer service

folklore states that if you give customers
what they ask for (just say yes), then
you end up with satisfied customers. This
folklore is false. Customers do ask for
what they want, but they usually don't
ask for these six basic needs. When did
you last go into a pizzeria and say, "I'd
like one slice of pepperoni pizza, please,"
and then add, "Could you please be
understanding, friendly, and fair?"
Customers don't ask for these other
needs, but they miss such gestures when
they are not provided. To really provide
top quality customer service, you need to
move beyond the yes folklore to fulfill
all your customers' needs.
The needs of your customers not only vary

according to their individual personalities but
can also change depending on the nature of
your business. A trip to Disneyland, for
example, is remembered for the fun and
safety of the park and rides. These two
service qualities are part of what makes a day
with the mouse so enjoyable and memorable.
Compare this excursion with a visit to your
accountants. In this situation, your needs are
more in the realm of accuracy and certainty.
You would be suspicious if your accountant
was having fun — when you weren't — and
started to laugh uncontrollably during a

meeting. Along with the six basic service
qualities, dozens more exist that are specific
to different businesses and occupations. Who
are your customers, really? Too often, the
definition of customer is limited to
someone who is outside of our company.
Look up customer in your dictionary. The first
definition of customer is a person who buys.

The second definition is a person with
whom one has dealings.
In fact, everyone who works in a company
has customers regardless of whether they
work with external, paying customers or
internal co-workers. Customers fall into
external and internal categories.
The external customer: These are the
people you deal with, either face-to-face or

over the phone, who buy products or
services from you. They are customers in
the traditional sense of the word. Without
them there would be no sales, no business,
no paycheck. If your definition of a
customer stops here, you are only seeing
half the picture.
The internal customer: The other half of
the picture is the people who work inside

your company and rely on you for the
services, products, and information that
they need to get their jobs done. They are

not traditional customers, yet they need the
same tender, loving care you give to your
external customers.
By expanding your definition of a customer
to include your co-workers, you are taking a
vital step toward excellent service.
The internal customer chain works both ways.
Sometimes you are the customer and other
times you are the service provider. For

example, a co-worker may come to you and
ask for a printout of a report. In this case,
you are the service provider because you are
giving him what he needs. However, ten
minutes later, you may turn around and go
to that same co-worker and ask for help on a
project; now you are the customer.
The customer chain
The relationship between internal customers
and external customers is what forms the
customer chain. If you have a back room kind
of job where you rarely see the light of day,

let alone a living, breathing customer, you
can easily begin to feel that your work has
little or no impact on external customers. But
if you look at the bigger picture, you can see
that everyone in a company plays some part
in fulfilling the customers' needs. Barely an
hour goes by during the day when you are
not, in some form or another, providing
something for somebody. Each interaction
with an internal customer is an important link
in a chain of events that always ends up at
the external customers' feet.
@@@@@@@@@@@@@@@@
REASONS FOR THE GROWTH OF SERVICES
IN INDIA:
MACRO LEVEL Industry
Globalization is due to such factors as :
Level of international trade

Intensity of international competition
Worldwide product standardization
Presence of key competitors in all key international markets.
Intra-firm trade
Technological intensity
International linkages of value-added activities among countries
International integration of value-added activities among
countries WORLDWIDE FREETRADE AGREEMENTS
WORLDWIDE ECONOMIC REFORMS

WORLWIDE FINANCIAL REFORMS
REMOVAL TARIFF BARRIERS BY COUNTRIES
REMOVAL OF SUBSIDIES COUNTRIES
ETC ETC
===================================================
THE PUSH FACTORS OF GLOBALIZATION
Market Drivers
Per capita income converging among industrial nations

Convergence of lifestyles and taste
Growth of global and regional channels
Establishment of world brands
Spread of global and regional media
Cost Drivers
Continuing push for economies of scale ( but offset by flexible

manufacturing) Accelerating technological innovation
Advances in transportation (e.g., use of FedEx to deliver urgent supplies from
one continent to another)
Emergence of newly industrializing countries with productive capability and low
labor costs (e.g., China, India and Indonesia)
Government Drivers
Reduction of tariff barriers (e.g., North American Free Trade Agreement)

Reduction of non-tariff barriers (e.g., Japan‘s gradual opening of its markets)
Creation of trading blocs (e.g., European Union, and Euro Currency in 1999)
Strengthening of world trade institutions (e.g., formation of the World Trade
Organization)
Competitive Drivers
Continuing increase in level of world trade
More countries becoming key competitive battlegrounds (e.g., rise of Japan to
become a ―lead‖ country)
Rise of new competitors intent upon becoming global competitors (e.g.,
Japanese firms in the 1970‘s, Korean firms in the 1980‘s, Taiwanese firms in the 1990‘s,
Chinese firms in the 2000s, and probably Indian and Russian firms
in the 2010‘s.
OTHER FACTORS WHICH DRIVES THE

GLOBALIZATION
In a Globalized industry, firms must simultaneously

accomplish: Global Scale Efficiency
Local Responsiveness
World-Wide Learning
=============================================
Changing World
A) Increase in complexity of life e.g legal advisers,

ACO service.
B) Increase in life expectancy e.g Health care,
Service apartments, Accident/Medical Insurance.
C) Ecological changes and resources changes e.g Car
pool services, Car rental services.
Changing Economies
A) Globalization e.g courier Service, BPO, KPO, IT,
shipping and forwarding.
B) Privatization e.g Mobile services, Banking Service.
C) Deregulation e.g Insurance, Petroleum
Sector, Telecom Sector.
Changing technology
Leads- E-marketing, range of new products
Service Sector- General Agreement On trades and in
service (GATS) have identified services activity classified

11 majors
1. Business Services
2. Communication Services
3. Constructions engineering services
4. Goods Distribution
5. Transport
6. Education
7. Environmental engeneering
8. Finance service
9. Health Care
10. Terrorism
11. Recreation (holidays, entertainment)
1. Economic affluence: One, of the key factors for the

growth of demand for services is the economic affluence.
According to the NCAER study the size of the middle
income consumer is raising fast and the percentage of the
very poor household‘s declining. The rural households in
the upper income category is growing at a much faster
pace than the urban households in the corresponding
categories. The Economic liberalisation Process has had a
positive impact on the Indian households. Their income
as well as their expenditure has been pushed, creating a
demand for many goods and services.
2. Changing Role of Women: Traditionally the Indian
woman was confined to household activities. But with the
changing time there has been a change in the traditional

way of thinking in the society. Women are now allowed
to work. They are employed in defence services, police
services, postal services, software services, health
services, hospital services, entertainment industries,
Business Process Outsourcing and so on.
The percentage of working women has been growing
rapidly. The changing role of women has created a market
for a number of product and services. Earning women
prefer to hire services in order to minimise the
innumerable roles that they are required to perform. The
demand by woman is forcing service organisations to be
more innovative in their approach.
3. Cultural Changes: Change is the underlying philosophy

of culture place of change in Indian culture is not
uniform. However, during the last century the factors of
change are prominent. The emergence of the nuclear
family system in place of the traditional joint family
system creates a demand for a host of services like
education, health care, entertainment, telecommunication,
transport, tourism and so on. There has‘ been a marked
change in the thought Processes relating to investment,
leisure time perception and so on which has created a
huge demand for services.
4. I.T. Revolution: For the last 15 years India‘6aste,en
occupying a vital position in the area of Information
Technology. IT became one of the key service businesses
of the country. India has the largest software skilled
population in the world. The domestic market as well as

the international market has grown substantially.
Realising the potential for this area many state
governments have made IT as their most, prioritized
segment states such as Karnntnka, Andhra Pradesh,
Madhya Pradesh Maharashtra and Delhi have already
achieved substantial progress in Information Technology
the In Ile years to come ‗Lille IT enabled se Aces will
have a bright future. The growth. of‘ population,
industrialisation and indiscriminate consumptions have
affected the, natural resources, environment and the
ecological balance. Due to this there is an imbalance of
the ecology various service organisations have been
promoted in order to take up social marketing. Thousands
of crores of rupees are being spent on safeguarding the
rare animals and birds, water pollution, conservation of
oil & energy and research to develop new technologies
that can promote effective use of natural resources and
safeguard the environment.
5. Development of Markets: During the last few decades
the wholesaler and the retailer population has grown in
the country. Urban India has become a cluster of
wholesaling and retailing business. In the Semi – urban
areas, retailing has spread to the nooks and corners of the
streets and in the rural areas retail business is significantly
present. A new breed of organisations, offering marketing
services has come up. The government also offers
marketing services to the small-scale agricultural farmers,
artisans and other traditional business sectors such ‗as
promotion of regulated markets, export

promotion councils, development boards etc.
6. Market orientation: The changing competitive situation
and demand supply positions has forced the
manufacturing organisation to shift their philosophy from
production orientation to market orientation. Market is a
service function that has been added in the organisation.
The pressures in the market has further forced the
manufacturing organisations to have marketing research,
accounting, auditing, financial management, human
resource management and marketing research divisions –
all of which are services functions.
7. Health-Care Consciousness: In India, the healthcare
market has grown substantially. The increased life
expectancy is the result of the consciousness of the people
regarding the health issues. The growth of fitness clubs,
diagnostic centres, medical counselling, health-related
information sites are the reflections of the growing demands
for health care services. The government as well as the
social organisations have taken up the mass campaigns in
order to create awareness among the illiterate persons and
the rural population on health service. Hence, the growth of
health related services.
8. Economic liberalisation: The economic liberalisation of
the 1991 has brought many changes in the Indian scenario.
With the Disinvestment and the Privatisation policies the
state owned monopolies in many service areas came to an
end Multinationals were permitted to enter the
Indian market. Liberal lending policies and lower interest

rates motivated many people to become self-employed.
Different sectors like Banking, Insurance, Power
projects, Telecommunication, Hospitality sector, Health
Services, Entertainment, Air transport, and Courier
services witnessed intense competition, due to the entry
of multinationals. The flow of time-tested service
technology from various parts of the world changed the
attitude of the Indian consumer towards sources.
9. Rampant migration: One of the important reasons for
the growth of services in India is the rampant migration of
rural to semi-urban and urban areas. Migration to urban
areas for the want of jobs and livelihood has resulted in
the expansion of cities and townships due to which
businesses like real estates, rentals, transportation

and infrastructure services are rapidly expanding.
10. Export potential: India is considered to be a Potential
source for services. There are a number of services that
India offers to various parts of the world like banking,
insurance, transportation co data services, accounting
services, construction labour, designing, entertainment,
education, health services, software services and tourism.
Tourism and software services are among the major
foreign exchange earners of the country and that the
growth rate is also very high as compared to the other
sectors.
11. Service tax: The growth in the service sector attracted
the attention of the government as a tax generating source.
Over the years, the number of services brought under

service tax has increased- Service tax is levied on hotels
and restaurants, transport, storage and communications,
financial services, real states, business services and social
and personal services.
Major reasons for the growth of service

sector in India:
In recent times the service sector is increasing at a
very fast pace. After the liberalization in the year
1991, the contribution of service sector is
continuously increasing in the growth of our
economy. However, agriculture is still dominating
the Indian economy. Service sector are growing not
only in volume but also in sophistication and
complexity. The growth of service industry is the
result of combination of several reasons, they are,
Increasing affluence(wealth)
Here with the increasing affluence, there has been

an increase in the demand for those services, which
the customers used to perform by themselves.

For example, service provided by the gardener,
servants, car driver etc.
More leisure(free time) time

This factor has lead to an increase in those services

which are related to entertainment, because of
increase in leisure time in today's people life. For
example tourism industry has grown because of
more leisure time available to the people.
Greater life expectancy(hope)
With increase in the average life of the people, there

has been an increase in the service which is related
to field of health care, for example medical services,
pathology laboratory, nursing homes. Health care
services etc.
Greater complexity of the product
With the growing complexity of the product, there

has been an increase in the services which are
indirectly supporting the maintenance of these
complex products. For example Air-conditioner,
car, computer, and other complex products require
service every yearly of every half yearly.
Higher percentage of working women
With the passage of the time, there has been an

increase in the working women. This has indirectly
leaded to increase in the growth in the services
such as, domestic servants, baby sittings, etc.
Increasing complexity of life
This has lead to an increase in the services of

marriage bureau, legal service, income –tax
consultants, placement services, etc.
Increasing number of new products
There are certain products which, if invented will

lead to growth in the service sector .computer being
the invention of the 21st century has lead to
software industry which is totally a sieve industry.
###########################
2. (a) What are the various elements of

marketing mix? Explain each of there
elements and their importance in the
marketing planning process of a
consumer
durable
company
manufacturing room air conditioner.
Marketing your business is about how you position it to

satisfy your market‘s needs. There are four critical
elements in marketing your products and business. They
are the four P‘s of marketing.
1. Product. The right product to satisfy the needs of

your target customer.
2. Price. The right product offered at the right price.
3. Place. The right product at the right price available
in the right place to be bought by customers.
4. Promotion. Informing potential customers of the
availability of the product, its price and its place.
Each of the four P‘s is a variable you control in creating

the marketing mix that will attract customers to your
business.
Your marketing mix should be something you pay careful
attention to because the success of your business
depends on it. As a business manager, you determine
how to use these variables to achieve your profit potential.
This publication introduces the four P‘s of marketing and
includes worksheets that will help you determine the
most effective marketing mix
for your business.
Product
―Product‖ refers to the goods and services you offer
to your customers. Apart from the physical product
itself, there are elements associated with your product
that customers may be attracted to, such as the way it
is packaged. Other product attributes include quality,
features, options, services, warranties,
and brand name. Thus, you might think of what you
offer as a bundle of goods and services. Your product‘s

appearance, function, and support make up what the
customer is actually buying. Successful managers pay
close attention to
the needs their product bundles address for customers.
Your product bundle should meet the needs of a particular
target market. For example, a luxury product should create
just the right image for ―customers who have
everything,‖ while many basic products must be
positioned for price conscious consumers. Other important
aspects of product mayinclude an appropriate product
range, design, warranties, or a brand name.
Customer research is a key element in building an

effective marketing mix. Your knowledge of your target
market and your competitors will allow you to offer a
product that will appeal to customers and avoid costly
mistakes.
If you are considering starting a new business or adding a
new product, then make sure the product bundle will fit
your business‘s strengths and weaknesses, and that it will
provide an acceptable risk/return tradeoff. For instance, if
your business is very good at timely response to
customers, then timely
service should be an important part of your product
bundle.
Think long term about your venture by planning for the
ways you can deepen and broaden your product bundle.
For instance, you may be able to take advantage of
opportunities
to add value through processing, packaging, and customer
service. Other future growth may allow you to offer your
product to different customers. Start-up businesses are
most successful when they concentrate their efforts on
one product or one market, like a restaurant or a car
service center does.
Later growth may occur in the same location or may be
in different geographic regions.
A different type of growth would be a diversification of
products, with your business offering related products.
Offering a whole range of products is most successful if
the raw materials, production processes, and
distribution methods
are similar, which means you do not have to acquire new
suppliers, skills and equipment, and distribution methods.
Price
―Price‖ refers to how much you charge for your product
or service. Determining your product‘s price can be tricky
and even frightening. Many small business owners feel
they must absolutely have the lowest price around. So they
begin their business by creating an impression of bargain
pricing.
However, this may be a signal of low quality and not part
of the image you want to portray. Your pricing approach
should reflect the appropriate positioning of your product
in the market and result in a price that covers your cost
per item and includes a profit margin. The result should
neither be greedy
nor timid. The former will price you out of the market;
pricing too low will make it impossible to grow.
As a manager, you can follow a number of alternative
pricing
strategies. In the next column are eight common pricing
strategies. Some price decisions may involve complex
calculation methods, while others are intuitive judgments.
Your selection of a pricing strategy should be based on
your product, customer demand, the competitive
environment,
and the other products you will offer.
• Cost-plus: Adds a standard percentage of profit
above the cost of producing a product. Accurately
assessing fixed and variable costs is an important part
of this pricing method.
• Value-based: Based on the buyer‘s perception
of value (rather than on your costs). The buyer‘s
perception depends on all aspects of the product,
including non-price factors such as quality,
healthfulness, and prestige.
• Competitive: Based on prices charged by competing

firms for competing products. This pricing structure is
relatively simple to follow because you maintain your
price relative to your competitors‘ prices. In some cases,
you can directly observe your competitors‘ prices and
respond to any price changes. In other cases, customers
will select vendors based on bids submitted
simultaneously. In those cases, gathering
information will be more difficult.

• Going-rate: A price charged that is the common
or going-rate in the marketplace. Going-rate pricing
is common in markets where most firms have little
or no control over the market price.
• Skimming: Involves the introduction of a product
at a high price for affluent consumers. Later, the price
is decreased as the market becomes saturated.
• Discount: Based on a reduction in the advertised
price. A coupon is an example of a discounted price.
• Loss-leader: Based on selling at a price lower than
the cost of production to attract customers to the
store to buy other products.
• Psychological: Based on a price that looks better,
for example, $4.99 per pound instead of $5.00 per
pound.
After you decide on your pricing strategy, the amount
of money you will actually receive may be complicated
by other
pricing aspects that will decrease (or increase) the
actual amount of money you receive. You will also
have to decide
how to determine:
• Payment period: Length of time before payment
is received.
• Allowance: Price reductions given when a retailer

agrees to undertake some promotional activity for
you, such as maintaining an in-store display.
• Seasonal allowances: Reductions given when an
order is placed during seasons that typically have
low sales volumes to entice customers to buy during
slow times.
• Bundling of products/services: Offering an
array of products together.
• Trade discounts (also called ―functional
discounts‖): Payments to distribution channel
members for performing some function such
as warehousing and shelf stocking.
• Price flexibility: Ability of salesperson or reseller
to modify price.
• Price differences among target customer
groups: Pricing variance among target markets.
• Price differences among geographic areas:
Pricing variance among geographic regions.
• Volume discounts and wholesale pricing:

Price reductions given for large purchases.
• Cash and early payment discounts: Policies to
speed payment and thereby provide liquidity.
• Credit terms: Policies that allow customers to pay
for products at a later date.
The methods discussed here should be a base from which
to construct your price. Your options will vary
depending on how
you choose to sell your product. For instance, if you make a
product but don‘t sell it directly to the customer, then you will
want to know who sets the retail price and what margin
they will require. Tracing the path of your product from

production
to final purchase is a useful exercise to discover this
information. The research needed to understand the
pricing along the distribution path will be more than
worth the time it takes.
Whatever your price may be, ultimately it must cover your
costs, contribute to your image by communicating the
perceived value of your product, counter the competition‘s
offer, and avoid deadly price wars. Remember, price is the
one
―P‖ that generates revenue, while the other three ―P‘s‖
incur costs. Effective pricing is important to the success
of your business.
Place
―Place‖ refers to the distribution channels used to get your
product to your customers. What your product is will
greatly influence how you distribute it. If, for example,
you own a
small retail store or offer a service to your
local community,
then you are at the end of the distribution chain, and so
you
will be supplying directly to the customer. Businesses that
create or assemble a product will have two options: selling
directly to consumers or selling to a vendor.
Direct Sales
As a producer, you must decide if supplying direct is
appropriate for your product, whether it be sales through
retail, door -to-door, mail order, e-commerce, on-site, or
some other
method. An advantage of direct sales would be the contact

you gain by meeting customers face to face. With this
contact you can easily detect market changes that occur
and adapt to them. You also have complete control over
your product
range, how it is sold, and at what price.
Direct sales may be a good place to start when the supply
of your product is limited or seasonal. For example, direct
sales
for many home-produced products can occur through
homebased sales, markets, and stands.
However, direct sales require that you have an
effective retail interface with your customers, which
may be in person or
electronic. If developing and maintaining this
retail interface
is not of interest to you or you are not good at it,
you should
consider selling through an intermediary.
Reseller Sales (Sales

Through an Intermediary)
Instead of selling directly to the consumer, you may decide
to sell through an intermediary such as a wholesaler or
retailer
who will resell your product. Doing this may provide you
with a wider distribution than selling direct while
decreasing the pressure of managing your own
distribution system. Additionally,
you may also reduce the storage space necessary for
inventory. One of the most important reasons for selling
through an intermediary is access to customers. In many
situations, wholesalers and retailers have customer

connections that would not be possible to obtain on your
own.
However, in selling to a reseller you may lose contact
with your end consumer. In some cases, you may also lose
some of your company identity. For example, your
distributor may
request that your product be sold under the reseller‘s
brand name.
One factor that may influence whether you can find an

intermediary to handle your product is production flow.
Wholesalers want a steady year-round supply of product
to distribute. If you can deliver a steady year-round
supply that is
of consistent quality, then selling through an intermediary
may be a good strategy for you.
Market Coverage
No matter whether you sell your product direct or through
a reseller, you must decide what your coverage will be in
distributing your product. Will you pursue intensive,
selective,
or exclusive coverage?
Intensive distribution is widespread placement in as
many places as possible, often at low prices. Large
businesses
often market on a nationwide level with this method.
Convenience products—ones that consumers buy
regularly
and spend little time shopping for, like chewing gum—do
better with intensive (widespread) distribution.
Selective distribution narrows distribution to a few
businesses. Often, upscale products are sold

through retailers
that only sell high-quality products. With this option, it
may be easier to establish relationships with customers.
Products
that people shop around for sell better with
selective distribution.
Exclusive distribution restricts distribution to a single
reseller. You may become the sole supplier to a reseller
who, in
turn, might sell only your product. You may be able to
promote your product as prestigious with this method,
though
you might sacrifice sales volume. Specialty products
tend to
perform better with exclusive distribution.
Other Place Decisions
Product characteristics and your sales volumes will dictate
what inventories to maintain and how best to transport
your
products. Additionally, the logistics associated with
acquiring
raw materials and ensuring that your final product is in
the right place at the right time for the right customers can
comprise a large percentage of your total costs and needs
careful monitoring.
You may decide to have a combination of all the
distribution
methods. Whatever you decide, choose the method which
you
believe will work best for you.
Promotion
―Promotion‖ refers to the advertising and selling part of
marketing. It is how you let people know what you‘ve

got for
sale. The purpose of promotion is to get people to
understand
what your product is, what they can use it for, and
why they
should want it. You want the customers who are
looking for a
product to know that your product satisfies their needs.
To be effective, your promotional efforts should contain
a clear message targeted to a specific audience reached
via an
appropriate channel. Your target audience will be
the people
who use or influence the purchase of your product. You
should focus your market research efforts on
identifying these
individuals. Your message must be consistent with
your overall marketing image, get your target
audience‘s attention,
and elicit the response you desire, whether it is
to purchase
your product or to form an opinion. The channel you
select for your message will likely involve use of a few
key marketing
channels. Promotion may involve advertising, public
relations, personal selling, and sales promotions.
A key channel is advertising. Advertising methods
to promote
your product or service include the following.
• Radio: Radio advertisements are relatively
inexpensive ways to inform potential local customers
about your business. Mid-to-late week is generally the
best time to run your radio ad.

• Television: Television allows access to regional
or national audiences, but may be more expensive
than other options.
• Print: Direct mail and printed materials, including
newspapers, consumer and trade magazines, flyers,
and a logo, allow you to explain what, when, where,
and why people should buy from you. You can send
letters, fact sheets, contests, coupons, and brochures
directly to new or old customers on local, regional, or
national levels.
• Electronic: Company Web sites provide useful
information to interested consumers and clients.
Password-protected areas allow users to more
intimately interact with you. Advertisements allow
broad promotion of your products. Direct e-mail
contact is possible if you have collected detailed
customer information.
• Word of Mouth: Word of mouth depends on satisfied
customers (or dissatisfied customers) telling their
acquaintances about the effectiveness of your products.
• Generic: Generic promotion occurs when no specific
brand of product is promoted, but rather a whole industry
is advertised. For instance, generic advertising is
commonly found for milk, beef, and pork.
Public relations (PR) usually focuses on creating
a favorable
business image. Important components of a good public
relations program include being a good neighbor, being
involved in the community, and providing open house
days.
News stories, often initiated through press releases,

can be
good sources of publicity.
Personal selling focuses on the role of a salesperson in
your
communication plans. Salespeople can
tailor communication
to customers and are very important in
building relationships.
While personal selling is an important tool, it is costly. So
you
should make efforts to target personal selling
carefully. Sales promotions are special offerings
designed to encourage
purchases. Promotions might include free
samples, coupons,
contests, incentives, loyalty programs, prizes, and rebates.
Other programs might focus on educating customers
through
seminars or reaching them through trade shows. Your
target
audience may be more receptive to one method than
another.
Additional sources of promotion may be attending or
participating
in trade shows, setting up displays at public events, and
networking socially at civic and business organizations.
Final Comment
The four P‘s—product, price, place, and
promotion— should
work together in your marketing mix. Often, decisions on
one
element will influence the choices available in others.
Selecting an effective mix for your market will take time

and
effort, but these will pay off as you satisfy customers and
create a profitable business. The worksheets that follow
will
help you construct your marketing plans.
Once you have a good marketing mix—the right product
at the right price, offered in the right place and promoted
in the
right way—you will need to continue to stay on top of
market
changes and adopt your marketing mix as necessary.
Marketing is a part of your venture that will never end.
CONSUMER DURABLE –NEW MODEL ROOM

AIRCONDITIONER.
MARKETING MIX / PRODUCT LIFE CYCLE

1.This product faces competition

from -LOCAL MAKES
-IMPORTED MAKES
2.This product -owing to newness in technology,

must develop the market --convert non users into
usership.
3.This product must also ' penetrate'' the market with
the potential users, who can afford.
Market Development is the outcome of

marketing mix elements IN THE PRODUCT
LIFE CYCLE.
The marketing strategy is usually built

around
the 4Ps
P1=PRODUCT
P2=PRICE
P3=PROMOTIONS
P4=PLACE [ SALES/DISTRIBUTION]
============================
========
The marketing strategy must respond to
the nature
of the product / market situation.
The marketer would use
different weightages for the 4Ps
as per the situations.
FOR MARKET DEVELOPMENT of ROOM

AIRCONDITIONER.
======================================
==
EXAMPLE OF ROOM AIRCONDITIONER .
MARKET DEVELOPMENT
AT THE INTRODUCTION STAGE.
**ORGANISATION CONDITIONS
-High Costs
-Inefficient Production Levels
-Cash Demands HIGH

------------------
**ENVIRONMENTAL CONDITIONS
-Few or No Competitions
-Limited Product Awareness and

Knowledge
-Limited Demand
--------------------------
**MARKETING EFFORTS
-Stimulate Demand
-Establish High Price
-Offer Limited Product Variety
-Increase Distribution
------------------------------
===============================
EXAMPLE OF ROOM AIRCONDITIONER.
Market Penetration Strategies.
P1
1.ATTRACTING COMPETITORS' CUSTOMERS.
Sharper product differentiation.
Finding other products' uses.

Increasing promotional effort.

--------------------------------------
-
P2
2.INCREASING PRESENT CUSTOMERS' RATE
OF USAGE.
Increasing the units of sales.
(Special price packages/cross-

selling products)
Reduction in price.
Price incentive for increased use.

--------------------------------------
---------
P3
3.REDUCING NUMBER OF LOST CUSTOMERS.
Improving communication with

present customers.
Promotion aiming at
existing customers.
Understand reasons for losing

customers.
--------------------------------------
-------------------
P4
4. CONCENTRATING RESOURCES ON MOST
PROFITABLE CUSTOMER SEGMENTS.
Concentrating on distribution
channels reaching most
profitable segments.
Offering total customer service

at higher price.
======================================
=
EXAMPLE OF ROOM AIRCONDITIONER .
MARKET DEVELOPMENT
AT THE GROWTH STAGE
**ORGANISATIONAL CONDITIONS
-Smoothing Production
-Lowering Costs
-Operation Efficiencies
-Product Improvement Work

----------------------------------
-Expanding Markets
-Expanded Distribution
-Competition Strengthens
-Prices Soften a Bit

---------------------------------
**MARKETING EFFORTS
-Cultivate Selective Demand
-Product Improvement
-Strengthen Distribution
-Price Flexibility
------------------------------------
EXAMPLE OF ROOM AIRCONDITIONER.
New Market Development Strategies.

P1
1..Repositioning.
--------------------------------------
--
P2
2.ATTRACTING NON-USERS.
Inducing trial use, BY

EXPLOITING PRICE POINTS.
Being flexible in pricing.

---------------------------------
P3
3.ATTRACTING OTHER MARKET
SEGMENTS. Seeking other distribution channels.
Advertising in other media.

-------------------------------------
P4
4.NEW GEOGRAPHICAL MARKETS.
National market expansion.
Regional market expansion.
Export market expansion.
======================
##########################
###########################
(b) Discuss the procedure of

conducting marketing research in the
Indian Context.
There are MANY ways to get information. These
are: literature searches, talking with people, focus
groups, personal interviews, telephone surveys, and
mail surveys ETC
1.A literature search involves reviewing all readily

available materials. These materials can include
internal company information, relevant trade
publications, newspapers, magazines, annual reports,
company literature, on-line data bases, and any other
published materials. It is a very inexpensive method of
gathering information, although it generally does not
yield timely information. Literature searches

take between one and eight weeks.
2.Talking with people is a good way to get

information during the initial stages of a research
project. It can be used to gather information that is not
publicly available, or that is too new to be found in the
literature. Examples might include meetings with
prospects, customers, suppliers, and other types of
business conversations at trade shows, seminars, and
association meetings. Although often valuable, the
information has questionable validity because it is
highly subjective and might not be representative of
the population.
3.A focus group is used as a preliminary research

technique to explore people‘s ideas and attitudes. It is
often used to test new approaches (such as products or
advertising), and to discover customer concerns. A
group of 6 to 20 people meet in a conference-room-
like setting with a trained moderator. The room
usually contains a one-way mirror for viewing,
including audio and video capabilities. The moderator
leads the group's discussion and keeps the focus on
the areas you want to explore. Focus groups can be
conducted within a couple of weeks and cost between
two and three thousand dollars. Their disadvantage is
that the sample is small and may not be representative
of the population in general.
4.Personal interviews are a way to get in-depth and

comprehensive information. They involve one person
interviewing another person for personal or detailed
information. Personal interviews are very expensive

because of the one-to-one nature of the interview

($50+ per interview). Typically, an interviewer will
ask questions from a written questionnaire and record
the answers verbatim. Sometimes, the questionnaire is
simply a list of topics that the research wants to
discuss with an industry expert. Personal interviews
(because of their expense) are generally used only
when subjects are not likely to respond to other
survey methods.
5.Telephone surveys are the fastest method of

gathering information from a relatively large sample
(100-400 respondents). The interviewer follows a
prepared script that is essentially the same as a written
questionnaire. However, unlike a mail survey, the
telephone survey allows the opportunity for some
opinion probing. Telephone surveys generally last less
than ten minutes. Typical costs are between four and
six thousand dollars and they can be completed in two
to four weeks.
6.Mail surveys are a cost effective method of

gathering information. They are ideal for large sample
sizes, or when the sample comes from a wide
geographic area. They cost a little less than telephone
interviews, however, they take over twice as long to
complete (eight to twelve weeks). Because there is no
interviewer, there is no possibility of interviewer bias.
The main disadvantage is the inability to probe
respondents for more detailed information.
7.E-mail and internet surveys are relatively new

and little is known about the effect of sampling bias
in internet surveys. While it is clearly the most cost
effective and fastest method of distributing a survey,
the demographic profile of the internet user does not
represent the general population, although this is
changing. Before doing an e-mail or internet survey,
carefully consider the effect that this bias might
have on the results.
7. Observational Research
1. The gathering of primary data by observing relevant
people, actions, and situations.
2. Ethnographic research:
Observation in ―natural environment‖
3. Mechanical
observation: People meters
Checkout scanners
8.Survey Research
1. Most widely used method for primary data collection.
2. Approach best suited for gathering
descriptive information.
3. Can gather information about people‘s knowledge,
attitudes, preferences, or buying behavior.
9.Ethnographic research
It is a particular observational research approach that
uses concepts and tools from social sciences to provide
deep understanding of how people live and work.
10.Behavioral Data
- Customers leave traces of their purchasing behavior in
store scanning data, catalog purchases, and customer
databases. Much can be learned by analyzing these data.
- Customers‘ actual purchases reflect preferences
and often are more reliable than statements offered
to marketing researchers.
11.Experimental Research
1. Tries to explain cause-and-effect relationships.
2. Involves:
selecting matched groups of subjects,
giving different treatments,
controlling unrelated factors, and
checking differences in group responses
12.Focus Group in Session
1. A focus group is a gathering of six to ten people who

are carefully selected based on certain demographic,
psychographic, or other considerations and brought
together to discuss various topics of interest at length.
2. A professional research moderator provides
questions and probes based on a discussion guide or
agenda to ensure that the right material gets covered.
3. Moderators attempt to track down potentially useful
insights as they try to discern the real motivations of

consumers and why they are saying and doing
certain things.
4. The sessions are typically recorded.
###################################
3. (a) Who is a consumer? Define

consumer behavior and discuss why
a knowledge of consumer behavior in
essential for Marketers.
CONSUMER
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
Example - Tom might purchase a tricycle for his
son or Mike might buy a shirt for himself. In

the above examples, both Tom and Mike are
consumers.
consumer Interest
Every customer shows inclination towards
particular products and services. Consumer
interest is nothing but willingness of consumers to
purchase products and services as per their

taste, need and of course pocket.
Let us go through the following example:
Both Maria and Sandra went to the nearby
shopping mall to buy dresses for themselves. The
store manager showed them the best dresses
available with him. Maria immediately
purchased two dresses but Sandra returned home
empty handed. The dresses were little too
expensive for Sandra and she preferred simple
and subtle designs as compared to designer
wears available at the store.
In the above example Sandra and Maria had

similar requirements but there was a huge
difference in their taste, mind set and ability
to spend.
Consumer Behaviour
Consumer Behaviour is a branch which
deals with the various stages a consumer
goes through before purchasing products or
services for his end use.
Why do you think an individual buys
a product ?
Need
Social Status
Gifting Purpose
Why do you think an individual does not buy

a product ?
No requirement
Income/Budget/Financial constraints
Taste
When do you think consumers purchase

products ?
Festive season
Birthday
Anniversary
Marriage or other special occasions

There are infact several factors which influence

buying decision of a consumer ranging from
psychological, social, economic and so on.
The study of consumer behaviour explains as to:
Why and why not a consumer buys a product ?
When a consumer buys a product ?
How a consumer buys a product ?
During Christmas, the buying tendencies of

consumers increase as compared to other months.
In the same way during Valentines week,
individuals are often seen purchasing gifts for their
partners. Fluctuations in the financial markets and
recession decrease the buying capacity of
individuals.
In a layman‘s language consumer behaviour deals

with the buying behaviour of individuals.
The main catalyst which triggers the buying
decision of an individual is need for a particular
product/service. Consumers purchase products
and services as and when need arises. According
to Belch and Belch, whenever need arises; a
consumer searches for several information which
would help him in his purchase. Following are the
sources of information:
Personal Sources
Commercial Sources
Public Sources
Personal Experience
Perception also plays an important role in

influencing the buying decision of consumers.

Buying decisions of consumers also depend on the
following factors:
Messages, advertisements, promotional
materials, a consumer goes through also

called selective exposure.
Not all promotional materials and
advertisements excite a consumer. A consumer

does not pay attention to everything he sees.
He is interested in only what he wants to see.
Such behaviour is called selective attention.
Consumer interpretation refers to how an
individual perceives a particular message.
A consumer would certainly buy something
which appeals him the most. He would

remember the most relevant and meaningful
message also called as selective retention. He
would obviously not remember something
which has nothing to do with his need.
============================
CURRENTLY we have borne witness to dramatic

shifts in the marketplace triggered by sharp
changes in the lifestyle patterns of the past
and present and the radical revolution in the
telecommunication
technology.
Time tested
concepts on Brand loyalty and Mass Marketing, are

being turned on their heads as they fail to gauge the
Behaviour of new generation customers. The
behaviour is characterized by the uniqueness of
individual expectations, the preference for multiple
options, propensity to abandon Brand loyalty and
switch to competition Brands that give higher

(perceived) value. The new breed is even willing to
import to satisfy specific requirement. It is difficult
to classify this generation by conventional

Demographic factors and unless their thought
process and buying behaviour are fully understood,
decisions on product designs and packaging,
Branding and Distribution channels are likely to be
misplaced. With the inevitability of change
looming large over the horizon, Indian companies
must learn from their western counterparts; not
only to identify the sources, timing and direction of
the changes likely to affect India, but also the new
competencies and perspective that will enable
them to
respond
to these
changes,
comprehensively and effectively. Companies
offering Product or Services will need to
understand this new face of the customers. The
changing Demographic profile of the population in
terms of education, income, size of family and so
on, are important by what will be more substantive
in days to come will be the Psychographics of
customers that is how they feel, think or behave.
Markers will have to constantly monitor and
understand the underlying Psychographics to

map their respective industries are moving and
decide what needs to be done, by way of adding
value that motivates customers to buy the
company‘s products and influence the future
industry structure.
AWARENESS : This means to know about the
existence of the product in the market. It is the
first stage of the adoption process. The consumers
are exposed to the product innovation. The
consumers at this stage are not interested in more
information about the product.
PERCEPTION : It is defined as the process by
which an individual selects, organizes and interprets

stimuli into a meaningful and coherent of the world.
It is how we see the world around us‘. Two persons
subject to the same stimulus under the same
conditions will react differently. A stimulus is any
unit of input to any of the senses. The study of
perception is largely the study of what we
subconsciously add to or subtract from raw
sensory to produce our own private picture of the

world.
ATTITUDE : In simple dictionary meaning
‗attitude; means a way of thinking is a learned
predisposition to behave in a consistently favorable
or unfavorable way with respect to a given object.
Attitudes are learned may be because of a
previous experience with the product,
information acquired from others, and exposure
to mass media. Attitudes are not permanent, they
do change over a period of time.
Consumer Behavior
The study of consumers helps firms and
organizations improve their marketing strategies
by understanding issues such as how consumers
think, feel, reason, and select between different
alternatives (e.g., brands, products);
The psychology of how the consumer is influenced

by his or her environment (e.g., culture, family,
signs, media);
The behavior of consumers while shopping
or making other marketing decisions;
Limitations in consumer knowledge or information
processing abilities influence decisions and
marketing outcome;
How consumer motivation and decision strategies
differ between products that differ in their level of
importance or interest that they entail for the
consumer; and how marketers can adapt and
improve their marketing campaigns and marketing
strategies to more effectively reach the consumer.
Understanding these issues helps in adapting
strategies
by
taking
the
consumer
into
consideration. For example, by understanding that
a number of different messages compete for our
potential customers‘ attention, one learns that to
be effective, advertisements must usually be

repeated extensively. It is also learnt that
consumers will sometimes be persuaded more by
logical arguments, but at other times will be
persuaded more by emotional or symbolic
appeals. By understanding the consumer, the
company will be able to make a more informed
decision as to which strategy to employ.
The definition of consumer behavior is "The study
of individuals, groups, or organizations and the
processes they use to select, secure, use, and
dispose of products, services, experiences, or
ideas to satisfy needs and the impacts that these
processes have on the consumer and society.
Behavior occurs either for the individual, or in the
context of a group (e.g., friends influence what
kinds of clothes a person wears) or an
organization (people on the job make decisions as
to which products the firm should use).
Consumer behavior involves the use and disposal

of products as well as the study of how they are
purchased. Product use is often of great interest to
the marketer, because this may influence how a
product is best positioned or how we can
encourage increased consumption. Since many
environmental problems result from product
disposal (e.g., motor oil being sent into sewage
systems to save the recycling fee, or garbage piling
up at landfills) this is also an area of interest.
Consumer behavior involves services and ideas as
well as tangible products.
The impact of consumer behavior on society is also
of relevance. For example, aggressive marketing of
high fat foods, or aggressive marketing of easy
credit, may have serious repercussions for the
national health and economy.

There are four main applications of
consumer behavior:
The most obvious is for marketing strategy—i.e.,

for making better marketing campaigns. For
example, by understanding that consumers are
more receptive to food advertising when they are
hungry, we learn to schedule snack advertisements
late in the afternoon. By understanding that new
products are usually initially adopted by a few
consumers and only spread later, and then only
gradually, to the rest of the population, we learn
that (1) companies that introduce new products
must be well financed so that they can stay afloat
until their products become a commercial success
and (2) it is important to please initial customers,
since they will in turn influence many subsequent
customers‘ brand choices.
As a final benefit, studying consumer behavior
should make us better consumers. Common sense
suggests, for example, that if you buy a 64 liquid
ounce bottle of laundry detergent, you should pay
less per ounce than if you bought two 32 ounce
bottles. In practice, however, you often pay a size
premium by buying the larger quantity. In other

words, in this case, knowing this fact will sensitize
you to the need to check the unit cost labels to
determine if you are really getting a bargain. There
are several units in the market that can be
analyzed.
############################
(b) Discuss Product Life Cycle concept

and elaborate on the importance of
PLC as a tool for monitoring and
nurturing a the brand. Illustrate with
suitable examples.
THE PRODUCT LIFE CYCLE PLAYS A

SIGNIFICANT ROLE IN THE MANAGEMENT
OF THE PRODUCT/ PRODUCT MARKETING.
THE MARKETING MANAGER HAS THE

RESPONSIBILITY OF MANAGING THE
PRODUCT IN ALL PHASES.
THE MARKETING MIX CHANGES BECAUSE
THE
-organizational conditions changes. -
environmental conditions changes
WHICH FORCES
-the changes in the MARKETING EFFORTS.
WHICH INCLUDES
P1=PRODUCTS
P2=PROMOTIONS
P3=PRICE
P4=PLACE
==================================
PRODUCT LIFE CYCLE
Products pass through a series of stages.

Successful products progress through four basic
stages: (1) Introduction; (2) Growth; (3) Maturity;
and (4) Decline.
The product life cycle concept provides important

insights about developments at the various stages of
the product's life. Knowledge that profits assume a
predictable pattern through the stages and that
promotional emphasis should shift from product
information in the early stages to product promotion in
the later stages should allow the marketing manager to
improve planning.
=======================================
PRODUCT LIFE CYCLE BENEFITS
Here is a brief description of what is expected to

take place in the stages of the life cycle:
1.
Initiation starts with the initial conception or

discovery of the product idea and runs until it
has been evaluated, has become specific, and has
been approved for development.
2.
Development covers the various activities that
transform an abstract product idea into a concrete
prototype model of the product (if it is a tangible
good) that can be manufactured.
3.
Market plans and tests is our term for the final
gestation phase, in which the product would pass its
last tests and everything be ready for
commercialising it.
4.
Introduction starts when the offering is made
available to buyers, probably on a limited scale, and
continues as it is tried by innovators and
experiences show slow sales growth.
5. Growth begins when numerous tryers like the

product, word of its virtues spread, and the
product sales "take off". Since the product is not
established until this takes place, we include it in
this chapter of "evolving products6.
Maturity
comes eventually, for the halcyon days of sharply
rising demand vanish when most potential buyers
have become actual customers. This may be a
very long period during which demand
decelerates and then reaches a plateau.
7. Decline sets in persistently when the product

eventually becomes obsolete. When it actually
starts to toboggan, it is time to give the
product a merciful death and burial.
The marketing strategist should never assume that the

PLC operates inexorably, but should rather examine a
brand's or product's actual position carefully. Further
a serious effort should be made to find a winning

strategy can revive a slumping demand, rather than

summarily abandoning the possibility. In that
context, the PLC does pose a hypothesis of product or
brand behaviour that is useful for sales forecasting. It
also enables us to clarify strategies in terms of their
timeliness.
==============================================
WHY YOU SHOULD USE THE PRODUCT LIFE CYCLE
CURVE FOR ANALYSIS
The product life cycle curve can be extremely important

in generating strategist, and it should be monitored
and controlled by the marketing manager. This
is necessary due primarily to five reasons:
1 . Rapid Maturity of Products

2. Life Cycle Product Mix
3. Strategic Implications
4. Product Planning
5. Changing the Life Cycle Curve
=============================================
THE PRODUCT LIFE CYCLE
Successful products progress through four basic

stages: Introduction. Growth. Maturity and Decline.
This progression is known as the Product Life Cycle.
1.INTRODUCTION
The company's objective in the early stages of the

product life cycle is to stimulate demand for the new
market entry. Since the product is not known to the
public, promotional campaigns stress information
about its features and benefits. They also may be
directed toward marketing intermediaries in the
channel to induce them to carry the product.
In this phase, the public becomes acquainted with

the merits of the product and begins to accept it.
Losses are common during the introductory stage due to

heavy promotion and extensive research and development

expenditures.
However, the ground is being laid for future profits.

Companies expect.to recover the costs and to begin
earning profits when the new product moves into the
second phase of its life cycle - the growth stage.
2.GROWTH
Sales volumes rise rapidly during the growth stage as

new customers make initial purchases and early buyers
re-purchase the product. 'Word-of-mouthl and
advertising induce hesitant buyers to make trial
purchases.
As the company begins to realise substantial

profits from its investment during the growth
stage, the product attracts competitors.
Success breads imitation and other companies rush

into the market with competitive products. The
majority of firms in a particular market enter during
the growth stage.
3.MATURITY
Industry sales continue to grow during the early part

of the maturity stage, but eventually they reach a
plateau as the backlog of potential customers is
exhausted. By this time, a large number of competitors
have entered the market, and profits decline as
competition intensifies.
In the maturity stage, differences among competing

products diminish as competitors discover the product
and promotional characteristics most desired by the
market. Heavy promotional outlays emphasise subtle
differences among competing products, and brand
competition intensifies.
In this stage, often available products exceed industry

demand. Companies attempting to increase their

sales and market share must do so at the expense of
competitors.
As competition intensifies, the competitors tend to cut

prices in an attempt to attract new buyers. Even
though a price reduction may be the easiest method of
inducing additional purchases, it is also one of the
simplest moves for, competitors to duplicate.
Reduced prices result in decreased revenues for all

firms in the industry unless the price cuts produce
enough increased purchases to offset the loss in
revenue on each item sold.
4.DECLINE
In the final stage of the product's life, innovations

or customer preferences bring about an absolute
decline in industry sales.
Sales and profits decline and companies begin to leave

the industry in search of more profitable products.
=======================================================
=
FOR EFFECTIVE MARKETING EFFORTS YOU WORK
WITH PRODUCT LIFE CYCLE
A VERY GOOD EXAMPLE OF AN

INNOVATIVE PRODUCT = COLGATE
SENSITIVE TOOTHPASTE.
1.INTRODUCTION
-High Costs
-Inefficient Production Levels

-Cash Demands HIGH

------------------
-Few or No Competitions
-Limited Product Awareness and Knowledge
-Limited Demand
--------------------------
**MARKETING EFFORTS
-Stimulate Demand
-Establish High Price
-Offer Limited Product Variety
-Increase Distribution
------------------------------
===============================
EXAMPLE OF MARKETING PROGRAM FOR
STAGES IN PRODUCT LIFE CYCLE
A.INTRODUCTION.
1.MARKETING OBJECTIVE -
successful entry in the market.
2.SALES -
increase sales.
3.CUSTOMERS
-identify customer segments
4.ENVIRONMENT
-Comply With External Regulations
& Accepted Values
5.PRODUCT
-Assure High Quality
6.PRICE
-use cost plus strategy
7.PROMOTIONS
-build product awareness
8.DISTRIBUTION
-build and channels
@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@
@@@@@@@
@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@
@@@@@@@@@
2.GROWTH
-Smoothing Production
-Lowering Costs
-Operation Efficiencies
-Product Improvement Work

----------------------------------
-Expanding Markets
-Expanded Distribution
-Competition Strengthens
-Prices Soften a Bit

---------------------------------
**MARKETING EFFORTS
-Cultivate Selective Demand

-Product Improvement
-Strengthen Distribution
-Price Flexibility
------------------------------------
=====================================

B. GROWTH.
1.MARKETING OBJECTIVE
-gain market share
-increase profitability
2.SALES
-increase / maximize sales volume.
3.CUSTOMERS
-determine customer acceptance.
4.ENVIRONMENT -
determine channel responses.
5.PRODUCT
-offer extensions or value added like service.
6.PRICE
-penetrate deeper into the market
7.PROMOTIONS
-induce trial.
8.DISTRIBUTION
-use selective distribution
--------------------------------------------------------
@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@
@@@@@@@@@@@@@@@@@
@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@
@@@@@@@@@@@@@@@@@
@
3. MATURITY
A. EARLY MATURITY
-efficient scale of operation
-production modification
work -LOW profit
B. LATE MATURITY
-product standardization
-Decreasing Profits
------------------------------
A. EARLY MATURITY
-slowing growth
-strong competition
-expanded market
-heightened competition
B. LATE MATURITY
-Faltering demand
-fierce competition
-shrinking number of competitors
-established distribution pattern
-----------------------------------
**MARKETING EFFORTS
A.EARLY MATURITY
-Emphasise Market Segmentation
-Improve Service and Warranty
-Reduce Prices
B. LATE MATURITY
-ultimate in market segmentation

-competitive pricing
-retain distribution
--------------------------------
===================================

C.MATURITY.
1.MARKETING OBJECTIVE
-consolidate market share -
maximize profit.
2.SALES
-maximize sales.
3.CUSTOMERS
-determine re-purchase rates.
4.ENVIRONMENT
-monitor competitive activities
5.PRODUCT
-diversify the brands or models
6.PRICE
-price war with competitors
7.PROMOTIONS
-stress favourable evaluations
8.DISTRIBUTION
-more intensive distribution
-----------------------------------------------------------
=================================
@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@
@@@@@@@@@@@@@@@@@
4.DECLINE
-Permanently Declining Demand

-------------------------------
-Reduction of Competitors
-Limited Product Offerings
-Price Stabilisations
----------------------------
**MARKETING EFFORTS
-Increase Primary Demand
-Profit Opportunity Pricing

-Prune and Strengthen Distribution

--------------------------------
=======================================
D.DECLINE.
1.MARKETING OBJECTIVE -
arrest the market share decline.
-minimize effort/time in marketing expenses.
2.SALES
-retain sales volume.
3.CUSTOMERS
-evaluate customer complaints.
4.ENVIRONMENT
-search for new opportunities.
5.PRODUCT
-phase out weak items
6.PRICE
-cut price or offer other
incentives 7.PROMOTIONS
-maintain loyalty
8.DISTRIBUTION
-depend on middlman
@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@
@@@@@@@@
Which product life-cycle stage, if any, is the most

important?
All the 4 stages are important.
-if the introduction stage fails, there will be no life

in the market
for the product.
-if the growth stage fails, the product will fail to
gain market share.
-if the maturity stage fails, it will be a financial
disaster
for the organization.
THE MOST IMPORTANT STAGE IS

THE GROWTH STAGE.
-if the product does not reach the targeted
market share /volume, it will force re-thinking of the
product.
=========================================
Which stage is the riskiest?

THE RISKIEST STAGE IS THE ''GROWTH
STAGE''.
THIS IS THE STAGE
-in which the product must show its true potential.
-the product positioning is tested
-the product branding is evaluated.
-the product marketing strategy is tested.
HENCE IT IS REQUIRED TO PRODUCE
RESULTS
AS FORECASTED.
=======================================
Which stage offers the greatest profit potential?

-at the growth stage, the profit per unit is the highest.
-at the maturity stage, the volume of profit is the

greatest
but per unit profit is low.
=======================================
Which stage seems to need the greatest amount of "hands

on" management
-at the introductory stage and growth stage, there
is a great need for hands on management, ON
SUCH VARIES AREAS AS
Personal Selling ,
-here the marketing communication is used
*to inform the customers/ prospects
*to create awareness
*to present the product
*to influence the customer
*to sell benefits
*to help the customer to make the buying decision
*to seek commitment
*to help to close the sale.
--------------------------------------
Sales Promotion

*to inform the customers
*to physically present
*to influence the customers
*to help the customers to feel the product
*to offer consumer incentives
*to help the final transactions
--------------------------------------------
Public Relations (and publicity)
*to publicise the company
*to publicise the product
*to publicise the company's research/
development *to publicise the company image
*to create the company
brand *to inform public
*to communicate with the community.
*to establish relations with government
*to establish community relations
--------------------------------------------------
Direct Mail
*to inform
*to talk to individuals *to
focus on niche market
*to inform the decision makers directly
*to advertise cost efficiently

*to promote selected market segments
*to contact individuals for one-to-one marketing
----------------------------------------------------------------------
Trade Fairs and Exhibitions
*to inform individuals
*to provide visibility
*to talk to individuals
*to promote person to person
--------------------------------------------------------------------
Advertising (above and below the line) -
here the marketing communication is used
ABOVE THE LINE
*to MASS inform the customers/
prospects *to create MASS awareness
*to sell benefits
BELOW THE LINE

*to make it visible at the point of sale.

*to display and promote
*to merchandise the product
------------------------------------------------------------------------------
Sponsorship
*to MASS inform the customers/ prospects
*to create MASS awareness
*to sell benefits

---------------------------------------------------------
Packaging -here the marketing communication is used
*to make it visible at the point of sale
--------------------------------------------------------------
Merchandising (and point-of-sale)
*to create visiblity at the point of sale.

--------------------------------------------------------------------
EMarketing (and Internet promotions) -
*to inform
----------------------------------------------------------------
Branding (and corporate identity)
*to create an unique position for the company
*to create an unique position for the product
*to create unique visibility
*to make it easy to identify
*to make it easy to buy *to
make it easy to sell
-----------------------------------------------------------
PRODUCT EXAMPLE
-COLGATE TOOTHPASE SENSITIVE

A very successful introduction
AND GROWTH / DEVELOPMENT.
----------------------------------
###########################
4. (a) What do you understand by the

term Marketing Communication and its
role in the promotion of a firms product
or service. Discuss with two suitable
examples one choosing from FMCG &
other from a service offering.
Integrated Marketing Communications is a term used to
describe a holistic approach to marketing. It aims to
ensure consistency of message and the complementary
use of media. The concept includes online and offline
marketing channels. Online marketing channels include
any e-marketing campaigns or programs, from SEARCH
ENGINE OPTIMIZATION, pay-per-click, affiliate,
email, banner to latest web related channels for webinar,
blog, RSS, podcast, and Internet TV. Offline marketing
channels are traditional print (newspaper, magazine),
mail order, public relations, industry relations, billboard,
radio, and television. A company develops its integrated
marketing communication programme using all the
elements of the marketing mix (price, place, product, and

promotion).
Reasons for the Growing Importance of IMC

Several shifts in the advertising and media industry have
caused IMC to develop into a primary strategy for
marketers:
From media advertising to multiple forms of
communication.
From mass media to more specialized (niche) media,
which are centered around specific target audiences.
From a manufacturer-dominated market to a retailer-
dominated, consumer-controlled market.
From general-focus advertising and marketing to data-
based marketing.
From low agency accountability to greater agency
accountability, particularly in advertising.
From traditional compensation to performance-

based compensation (increased sales or benefits to
the company).
From limited Internet access to 24/7 Internet
availability and access to goods and services.
IMC is a synergistic approach to achieving the

objectives of a marketing campaign, through a well
coordinated use of different promotional methods.
It includes a variety of communication

disciplines-
*advertising
*public relations
*personal selling
*sales promotions
*direct marketing
*sponsorship
and combines them to provide clarity, consistency, and maximum communication
impact.‖
PR IS AN ELEMENT OF THE PROMOTIONAL

MIX,
WHICH IN TURN IS A PART OF THE
MARKETING MIX.
PR PLAYS A ROLE IN THE MARKETING
CAMPAIGN AND IS
INTEGRATED INTO IMC, WHICH ADDS TO
THE SYNERGY OF MARKETING
=========================================
===========
IMC IS BECOMING MORE IMPORTANT.

A management concept that is designed to make all
aspects of marketing communication such as

advertising, sales promotion, public relations, and direct
marketing work together as a unified force, rather than
permitting each to work in isolation.
Model for Integrated Marketing
Integrated Marketing Communication is more than the
coordination of a company's outgoing message

between different media and the consistency of the
message throughout. It is an aggressive marketing plan
that captures and uses an extensive amount of customer
information in setting and tracking marketing strategy.
Steps in an Integrated Marketing system are:
Customer Database
An essential element to implementing Integrated
Marketing that helps to segment and analyze
customer buying habits.
Strategies
Insight from analysis of customer data is used to
shape marketing, sales, and communications
strategies.
Tactics
Once the basic strategy is determined the appropriate
marketing tactics can be specified which best targets
the specific markets.
Evaluate Results
Customer responses and new information about buying
habits are collected and analyzed to determine the
effectiveness of the strategy and tactics.
THIS CYCLIC PROCESS RUNS AND KEEP

RUNNING, WITH FEEDBACK ON EVERY
CYCLE RUN.
=======================================
==============================
WHY IMC IS SO EFFECTIVE ?
4 P's vs. 4 C's
Not PRODUCT, but CONSUMER
Understand what the consumer wants and needs. Times
have changed and you can no longer sell whatever you
can make. The product characteristics must now match
what someone specifically wants to buy. And part of
what the consumer is buying is the personal "buying
experience."
Not PRICE, but COST
Understand the consumer's cost to satisfy the want or
need. The product price may be only one part of the
consumer's cost structure. Often it's the cost of time to
drive somewhere, the cost of conscience of what you
eat, and the cost of guilt for not treating the kids.
Not PLACE, but CONVENIENCE

As above, turn the standard logic around. Think
convenience of the buying experience and then relate that
to a delivery mechanism. Consider all possible definitions
of "convenience" as it relates to satisfying the consumer's
wants and needs. Convenience may include aspects of the
physical or virtual location, access ease, transaction
service time and hours of availability.
Not PROMOTION, but COMMUNICATION

Communicate, communicate, communicate. Many
mediums working together to present a unified message
with a feedback mechanism to make the communication
two-way. And be sure to include an understanding of non-
traditional mediums, such as word of mouth and how it
can influence your position in the consumer's mind. How
many ways can a customer hear (or see) the same
message through the course of the day, each message
reinforcing the earlier images?
=========================================
=============
WHY IMC IS SO DIFFERENT TO
''REGULAR MARKETING''
Perception vs. Facts

In an age of increasing information overload, the
consumer has developed a coping mechanism to deal
with the amount of information being received. There is
increasing evidence that customers and prospects are
basing most of their purchasing decisions on what they
perceive to be important or true (or what they think is
right or correct) rather than on solid, rational,
economically derived information. To the consumer,
perception is truth. A perception may not be correct, but
it is what they know, and what they know is all they need
to know. This new "sound bite" approach to gathering
marketing information demands that a marketer's
statements about products or services must be clear,

concise, consistent, and comprehensible through all forms
of communication or the consumer will simply ignore
them. Any minor inconsistency that does not match the
existing "mind map" and will be ignored.
=========================================
=============
IMC ADVANTAGES /DISADVANTAGES
/ BENEFITS
ADVANTAGES
-cross functional approach to communications
-improved communication with consumers
-uses demographic / psychographic of consumers
profiles
-applies strategic segmentation of consumers
- includes many online and offline marketing channels. -
Online marketing channels include any e-marketing
campaigns or programs, from search engine optimization
(SEO), pay-per-click, affiliate, email, banner to latest web
related channels for webinar, blog, RSS, podcast, and
Internet TV.
-Offline marketing channels are traditional print
(newspaper, magazine), mail order, public
relation, billboard, radio, and television.
-IMC plan will customize what is needed for the client
based on time, budget and resources to reach target or
goals.
-Small business can start an integrated marketing
communication plan on a small budget using a
website, email and SEO.
-Large corporation can start an integrated marketing
communication plan on a large budget using print, mail
order, radio, tv plus many other online ad campaigns.
DISADVANTAGES
-agencies learning the expertise of

IMC -coordination at the client's office
-correct database on segmentation
etc
BENEFITS
-maximizing the use of dollars -better
results for the dollar spending
-effective communication coverage of targeted

consumers
-in some cases, it is the one-to-one marketing
exercise, with fast consumer response.
- Instead of dividing communications into several
overlapping departments, organizations use one strategy
for everything, making every communication consistent
with one message and one strategy.

etc etc
=========================================
=========
FOR DEVELOPING AN EFFECTIVE
INTEGRATED MARKETING COMMUNICATION,
YOU SHOULD
1. Define Product or Service
• Describe your product/service and mission in
simple terms
• Emphasise your USP ―Unique Selling Proposition‖
• Communicate intrinsic benefit/value to your
customer
------------------------------------------------
2. Identify Target Audience
• Your audience refers to the people you aim
your sales effort at, otherwise known as your
―target market‖. You may have more than one
target market.
• This includes two factors:

∗ Who needs your product/service?
∗ What is the profile of your ideal customer and what are their habits?
• Target markets are described in terms

of their shared characteristics.
∗ For example, if your product/service is
aimed at individuals, you can describe

them by age, income, geographic location,
and lifestyle.
∗ If your product/service is aimed at organisations, you can describe them by
number of employees, sales, geographic

location, and industry.
----------------------------------------------------------
3. Determine Goals and Objectives
• Set the bar as to what you want to achieve.
• Measure your success against your own
efforts, not your competitors.
• Two types of goals:
∗ Quantitative – those with specific, measurable results and numbers.
∗ Qualitative – bring increased value, like improving image or visibility.
------------------------------------------------------------
4. Define the Brand
• Focus your message by identifying 3 to 4
―key messages‖ to be woven through all
marketing materials.
• There is a lot of ―media clutter‖ customers
are bombarded daily with hundreds of sales
and marketing messages about numerous
products and services.
• To succeed, focus on a particular market
and emphasise features/benefits to them.
----------------------------------------------------------------
5. Set Pricing
• A guidepost for setting price involves
estimating the monetary value your customer
will receive, and understanding your financial goals
and objectives.
• Remember to price the product/service at a
rate higher than your fixed and variable cost.
-----------------------------------------------------------------
6.Establish Marketing Budget
• Set aside a specific dollar amount either per
quarter or per year. You need to make the best
marketing decisions possible to maximise the
return on your marketing dollars invested.
• Evaluate marketing decisions such as
advertising in the yellow pages, hiring sales
reps or conducting a PR program based on
the amount of business a particular
initiative generates.
• Track each initiative and evaluate
what worked and what didn‘t.
------------------------------------------------------------------
7. Choose Marketing Strategies
• Strategic marketing tools to deliver your
message to the target audience.
Brainstorm ideas to reach target market.
Be creative - don‘t sensor wild ideas.
• Divide into paid, non-paid and non-
traditional media.
∗ Paid media: direct mail, newspaper, radio,
TV, billboards, direct sales

∗ Non-paid media – referred to as public relations because it is
exposure through traditional media without paying for advertising
in that media.
∗ Non-traditional media: includes everything else —
sponsorships, ad specialties, shows/events, electronic media
and the Internet.
-----------------------------------------------------------------
8. Determine Tactics
• List out specific action steps to achieve each
strategy.
• Include deadlines and key dates for
executing all of your marketing activities.
-------------------------------------------------------------------
9. Establish Timing
• Establish a specific timetable for each tactic.
-------------------------------------------------------------------
10. Measure Results
• Track results of your marketing efforts on an
ongoing basis, using tracking devices such as
ad codes, call-in logs and reply cards (if the
budget allows).
• Evaluate at the end of the year or plan period
to see if the results matched your stated goals.
=======================================
FOR MEDIA STRATEGY / SELECTION.
• What goals do you want to accomplish?

Pinpoint very specifically the action and/or awareness that
you want your target

audience to adopt.
• Who is the target audience?
The target audience is a segment of a population that
will receive the media
message. Carefully dissect the population into the
target category by profiling
the audience to better understand their
attitudes, knowledge, and behavior.
Knowing what the target audience thinks about the
issue at hand and where they
obtain information will play an important part in
determining appropriate media
channels used in delivering your message.
• What messages will bring about the desired change or
outcome?
Message development is of utmost importance. The root
message should come
from quality discussion and brainstorming. The
root message also should
position your goal in a unique and appealing way to the
target audience. Choose
more than one message (but no more than three)
to prevent staleness and to
encourage a view from different angles. Suggestions
for message development
include: interviews, surveys, focus groups, and piloting
materials with the target
audience.
• What media channels will be the most efficient and
cost-effective?
There are several categories of mass media: News media
includes television,
radio, newspapers, magazines, and
periodicals. Advertising and public service
announcements may involve print, radio, television
and billboards/bus boards.
Public affairs events may include rallies, conferences, and
speeches. To help
inform the decision of which type or types of media
to use, be aware of where
the target population gets its information, which channels
are most/least
believable, what your budget will support, and what will
provide adequate
―dosage‖ of the messages on a regular basis. Building
and maintaining
relationships with local media will aid in better results
during a campaign.
• How will progress be monitored?
There are two common evaluation techniques to consider
for evaluating a public
awareness campaign: process and outcome. A
process evaluation will ask
questions such as ―how is the implementation going?‖
or ―are we meeting
benchmarks‖? An outcome evaluation will focus more on
the number of people
reached or how behavior has changed. Through ongoing

evaluation measures,
you will know
- whether your messages and supporting materials
are being seen,
- whether your messages are perceived to be credible and
plausible, and
- whether your messages are affecting behaviors.
@@@@@@@@@@@@@@@@@@@@@@@@@
@
INTEGRATED Marketing communications has a
mix. Elements of the mix are blended in different
quantities in a campaign. The marketing
communications mix includes many different
elements, and the following list is by no means
conclusive. It is recognised that there is some cross
over between individual elements (e.g. Is donating
computers to schools, by asking shoppers to collect
vouchers, public relations or sales promotion?) Here
are the key of the marketing communications mix.
The Marketing Communications Mix.

Personal Selling ,
*to inform the customers/ prospects
*to create awareness

*to sell benefits
*to seek commitment
*to help to close the sale.
----------------------------------------------------------------------
-----------
Sales Promotion
*to inform the customers
----------------------------------------------------------------------
--------
Public Relations (and publicity)
*to publicise the company
*to publicise the product
*to publicise the company's research/ development
*to publicise the company image
*to create the company brand
*to inform public

*to communicate with the community.
*to establish relations with government
*to establish community relations
----------------------------------------------------------------------
Direct Mail
*to inform
*to promote selected market segments
----------------------------------------------------------------------
Trade Fairs and Exhibitions
*to inform individuals
*to provide visibility
*to talk to individuals

*to promote person to person
--------------------------------------------------------------------
Advertising (above and below the line) -
ABOVE THE LINE
*to sell benefits
HERE IS PR IS INCLUDED AS A
MASS COMMICATION
TOOL .
------------------------
BELOW THE LINE
*to make it visible at the point of sale.
----------------------------------------------------------------------
--------
Sponsorship
*to MASS inform the customers/ prospects
*to create MASS awareness
*to sell benefits
---------------------------------------------------------
Packaging -here the marketing communication is
used

*to make it visible at the point of sale
--------------------------------------------------------------
Merchandising (and point-of-sale)
*to create visiblity at the point of sale.

--------------------------------------------------------------------
EMarketing (and Internet promotions) -
*to inform
----------------------------------------------------------------
Branding (and corporate identity)
*to create an unique position for the company
*to create an unique position for the product
*to create unique visibility
*to make it easy to identify
*to make it easy to buy *to
make it easy to sell
-----------------------------------------------------------
ALL THE INTEGRATED MARKETING
COMMUNICATION EFFORTS ARE DIRECTED
-TO MAKE IT EASY FOR THE CUSTOMERS
TO MAKE THE BUYING DECISION.
-HENCE MORE SALES.

=========================================
================
Integrated marketing communications see the
elements of the communications mix 'integrated' into

a coherent whole. This is known as the marketing
communications mix, and forms the basis of a
marketing communications campaign.
marketing communications process
The elements of the promotions mix are integrated to
form a coherent campaign. As with all forms of
communication. The message from the marketer
follows the 'communications process' as illustrated
above. For example, a radio advert is made for a car
manufacturer. The car manufacturer (sender) pays for
a specific advert with contains a message specific to a
target audience (encoding). It is transmitted during a
set of commercials from a radio station (Message /
media). The message is decoded by a car radio
(decoding) and the target consumer interprets the
message (receiver). He or she might visit a dealership
or seek further information from a web site
(Response). The consumer might buy a car or express
an interest or dislike (feedback). This information will
inform future elements of an integrated promotional
campaign. Perhaps a direct mail campaign would push
the consumer to the point of purchase. Noise represent
the thousand of marketing communications that a
consumer is exposed to everyday, all competing for
attention.
==========================
Discuss with two suitable examples one

choosing from FMCG & other from
a service offering
1. Launch of new BUSINESS SOLUTION SERVICE.
[depending on the nature/type of SOFTWARE
SOLUTION ]
Personal Selling.
[selling by the company reps to the prospects]
--------------------------------------------------
Sales Promotion.
[conducting demos at the office/ client site ]
----------------------------------------------------
Public Relations
[press release / media release ]
---------------------------------------------------
Direct Marketing.
[ to the prospective users in the companies]
------------------------------------------------------
Trade Fairs and
Exhibitions. [ IT fairs ]
------------------------------------------
Advertising (above the line ]
[ PRODUCT AD in newspapers/ magazines/ ]
---------------------------------------------
Advertising [Brands.
[product branding ]
-------------------------------------------------
corporate identity.
[building corporate image of the DEVELOPER]
============================================.
2.An established brand of FMCG detergent
which is facing competition and whose sales
are negatively affected.)
THIS CALLS FOR REAL AGGRESSIVE MARKETING.
Personal Selling.
[selling by the company reps to the RETAILER.
offer attractive incentive to the reps. to push sales.
--------------------------------------------------
Sales Promotion.
[product promotion at the retailers/ consumer promotions
at the retailers]
----------------------------------------------------
Public Relations
[press release / media release ]
---------------------------------------------------
Advertising (above the line ]
[ PRODUCT AD in newspapers/ magazines/ TV ]
---------------------------------------------
Advertising [ below the line ]
[ shelf displays, promotions displays etc
-------------------------------------------------------------
BONUS FOR VOLUME PERFORMANCE FOR RETAILERS
-----------------------------------------------------------------
Advertising [Brands.
[product branding ]
-------------------------------------------------
corporate identity.
[building corporate image of the manufacturer]
-------------------------------------------------------------------
SPONSORSHIP
[ community based programs ]
========================================
############################
(b) Discuss the importance and

relevance of sales and distribution
function
in
a
manufacturing
and
marketing organization of your choice.
Marketing role in business
Marketing is perhaps the most important activity in a
business because it has a direct effect on profitability
and sales. Larger businesses will dedicate specific
staff and departments for the purpose of marketing.
It is important to realise that marketing cannot be carried
out in isolation from the rest of the business. For
example:
The marketing section of a business needs to work

closely with operations, research and development,
finance and human resources to check their plans are
possible.
Operations will need to use sales forecasts produced by
the marketing department to plan their production
schedules.
Sales forecasts will also be an important part of the
budgets produced by the finance department, as well
as the deployment of labour for the human resources
department.
A research and development department will need to
work very closely with the marketing department to
understand the needs of the customers and to test
outputs of the R&D section.
What is Marketing ?
It is a process by which
-one identifies the needs and wants of the people. -

one determines and creates a product/service to meet
the needs and wants. [PRODUCT]
-one determines a way of taking the product/service
to the market place. [PLACE]
-one determines the way of communicating the
product to the market place. [PROMOTIONS]
-one determines the value for the product.[PRICE].
-one determines the people, who have needs/ wants.
[PEOPLE]
and then creating a transaction for exchanging the
product for a value. and thus creating a satisfaction to
the buyer's needs/wants.
TERMS to understand.
1.Product/Service means a product or service or idea
to satisfy the people's needs / wants.
2.Needs mean when a person feels deprived of
something.
3.Wants mean when a person's need is formed /
shaped by personality, culture, and knowledge.
4.Value means the benefits that the customer gains
from owning and using the product and the cost of
the product.
5.Satisfaction means the extent to which a product's
perceived performance matches a buyer's
expectation.
6.Exchange means the act of obtaining a needed/
wanted object by offering something in return.
7.Transactions mean a trade off between a buyer / a
seller that involves an exchange at agreed conditions.
Marketing is based on identifying, anticipating and

satisfying customer needs effectively and
profitably. It encompasses
- market research,
-product planning / development
, -product pricing,
-product marketing
-SALES *****************************
-promotion,
-distribution, ************************
-customer care,
-BRANDING -
merchandising
-retailing
-website marketing
and much more.
===========================================
ROLE OF (Sales and Distribution)

ROLE OF SALES /DISTRIBUTION in the
marketing model refers to how your product or service reaches the customer. It
involves not only
how you make the sale, but how your distribution
system. There are many factors to consider in sales and distribution. You need a well-
thought-out
plan for conducting the sale and distributing
(delivering) your product to the customer.
Here are some questions to consider:
Is your sales approach highly persuasive and
emotional? Or, is it informational and

low-keyed?
What is the average length of the sales cycle?
How many products can you produce in what
time frame?
How many products can you store, or what is
your inventory capacity? Use sales forecasts

to decide what your inventory levels should be
in order to meet customer demands.
How often will you "turn" or replenish your
inventory? How does this compare with

the standards in your industry?
What are the cyclical fluctuations or seasonal
changes that affect the demand for or

production of your products? For example, if
you produce Christmas decorations, how will
you manage peak production and sales periods as
well as slow periods?
Describe your distribution channel. In other
words, how will your products be delivered or

distributed to the customers?
For relatively small sales, such as selling your
paintings through a local gallery, the distribution
method is such a routine part of the sales contact
that it requires only a small amount of thought and
description. (In this scenario, the painting is
displayed and stored at the gallery, the sales
approach is probably low-pressure and
informational, and the painting is given to the
customer at the time of the sale.) At other times,
such as when an order is taken over the Internet
and the product is mailed, more planning and
description of the entire approach is in order.
Product Availability
At first glance, it may seem like the more
convenient and available your product is, the
better. This isn't always true, however. Often, it's
better to be more selective, even exclusive, about
sales locations for your product. Take every

opportunity to think strategically.
Wide Availability
Limited Availability
Intensive Distribution
Selective Distribution
Exclusive Distribution
Use all suitable distribution Use channels meeting certain Retailer or channel is
granted channels. Example: Brand
criteria only. Example: Mont
exclusive rights. Example:
name chewing gum is available Blanc pens are sold only
in Body Shop products are
at a wide variety of retail
upscale retail stores.

available only in their stores
outlets.
or from their catalogs.
SELLING PROCESS
The selling process has six key steps.

Virtually every sales interaction will follow
these steps, whether it lasts several minutes or
several months:
1.Prospecting
2.Initial Contact
3.Sales Presentation
4.Handling Objections
5.Closing the Sale
6.Follow-Up and Service after the Sale
As you develop a sales process that is right for you
and your business, here are some other pointers to
keep in mind:
Continuously improve your sales skills, learn
from others and stay open to new ideas.
Be sincere about your desire to help the
prospect. Making the sale should be your

secondary objective. This attitude will come
through in every encounter and will help
you build long-term relationships.
Contribute more than just your product. Provide
industry news updates, creative ideas, and

business advice as part of the service you offer.
Be direct with your communication. Beating
around the bush only frustrates people. Answer

all questions. Never patronize.
Enclose your business card with every letter and

note.
Thank people who refer prospects to you. If the
referral results in business, send a small,

business-related thank-you gift also.
Never lie. Don't badmouth the competition or
say negative things about their clients.

Don't gossip.
Don't overbook yourself so much that you don't
have time to listen and be available to your

customer for their questions and comments.
==========
Distribution refers to how you deliver your product

to the customer. If you are in a service business, it
may be the way you deliver yourself to the
customer to perform the service. Some of the
primary categories of sales and distribution
channels are named below. You may use one,
more than one or various combinations of sales

and distribution methods. Additionally,
different products from the same company may
require different methods.
Direct Sales
Your company sells directly to the customer or

end user of the product. There is no agent between
your company and the customer. Providing
financial planning services to individuals is an
example of direct sales. Catalog
sales or sales over the Internet are also examples of this method.
Indirect Sales: Retail
Your company sells to a retailer whose

salespeople then sell to the customer. Selling
organically grown herbs to a local grocery

store is an example of indirect sales.
Indirect Sales: Wholesale
Your company sells to a wholesaler or agent

who sells products to retailers. The wholesaler
most likely represents several companies. (It's
more efficient for the retailer to have one source
for many products instead of dealing with an
unwieldy number of individuals.) Selling novelty
pet accessories to wholesalers who resell to a
variety of pet care stores, animal clinics and
other retail outlets is an example of selling to
wholesalers or agents. Trade shows and
merchandise markets are locations where
retailers order your product based on your
display and promotion at the show. You can get
schedules and names of these shows from trade

publications available in most big libraries.
Indirect Sales: Multi-level Marketing
You sell both directly to customers and to other

sales people you have recruited to sell products.
You determine which interface between your
company and the prospective customer is
appropriate depending upon your objectives:
For a high-priced product with a small number of potential buyers, the
What are the characteristics
direct sales approach with plenty of service is probably best. For a
of your target market and low-priced product that appeals to the mass market, like
chewing gum, how large is the market for
an indirect selling approach is fine as long as it is supported
with this product?
advertising and effective placements in retail stores so customers
can find it easily.
Sales through a local retail outlet may be your best distribution
method if you have a large number of customers located in your
area. However, a small number of geographically dispersed buyers
may Where are the customers
require you to sell to an agent or wholesaler who, hopefully, will
located?
provide the needed individual attention. Industrial purchases are made
directly from a manufacturer or manufacturer's representative in

most cases.
You might segment your customer base by order size and sell directly
How large are the orders?
to customers placing large orders and use an indirect sales method for
small orders.
THE PRODUCT
Vivel
are high quality ranges of soaps and shampoos for the
upper-mid and mid-market consumer segments. All
products offer a unique value proposition of bringing
together ingredients that provide the benefit of
Nourishment, Protection and Moisturisation through
one product, hence providing the ever discerning
consumer complete care, which makes her beautifuland
confident.
DISTRIBUTION CHANNEL OF VIVEL SOAP

FROM ITC NEED:
Distribution channels are sets of interdependent
organizations involved in the process of making a
product or service available for use or consumption.
From the point of view of making available
products and services, the existence of
intermediaries betwee n the products and the
ultimate end users is inevitable. This inevitability is
primarily due to thefact that producers can exploit the
economies of scale only if they produce in bulk, which
inturn results in the production function getting
concentrated in a single location. It is noticedthat
channels are created for reaching out to different
customers who are spread wide acrossterritories.Each
channel addresses the needs of the customer. The mass
retail and key retail segmentsaddress the convenience
aspect as they are located in proximity to residential
areas. TheModern Retail outlets might address
the same customer but provides a different value
proposition. It addresses a different need of providing
a wide array of products under oneroof when the
customer values a shopping experience, and would
like to have an experienceof picking up his groceries
and personal care products.For example in case of
VIVEL soap, ITC towards making this
product reach the end user h a d t o e m p l o y t h e

rightchannel,andensureproperstrategiesareinplacetoward
s maximizing the off take of
the product through the channel by the target

customers. Nowthe availability of the same product at
different channel members is different. The productmay
be available in boxes and in large quantity at the
wholesalers point targeting the retailers whereas
the same product is available in the base pack with
the retailers, heretargeting the retailers. Even at this part
of the channel, there is a difference. The product at
alocal Kiryana shop may be available with no offer
whereas the same product at a big
departmental store might be available with an offer. This
is how each channel member actsdifferently with the
same motive of increasing sales and profit.
DISTRIBUTION CHANNEL STRUCTURE:
DISTRIBUTION CHANNEL PLAYERS

1) Factories
: ITC Limited has two manufacturing facilities of soaps in
India. These are located oneeach at Bangaluru and
Haridwar. Apart from these two there are four other units
which manufacturesoaps and other personal care products
for ITC. The goods from the factories goes directly to
theWholesale service providers. These factories are well
connected with the branch offices. From hereexchange of
information takes place which
guides the flow of products to the Wholesale service
providers.
2) Wholesale service providers (WSP):
The role of the WSPs is to simply take delivery of the
goods from the factories that the ITC have atsix different
locations across India and forward it to the
Wholesale Dealers. They are almost thesame as C&F
agents in the other companies. They are given
commissions for their handling of thegoods. They in
turn have to see that the goods reach the next
point of the chan nel that is theWholesale dealers in
time and safely. They also have to maintain their stock
level and see that thedistributor is maintaining their stock
as per the norms of the Company.The stock norms are
maintained in ITC as a real time basis. ITC have software
named SIFY Forumfor the same. This is a real time
software, by the use of which the WSP agent can
know the stock level maintained by the Distributor
and vice versa. It also helps in ordering of the stock
for theDistributor and the other channel members.3)
Wholesale Dealer:
A Wholesale Dealer is a channel member in the
distribution system which plays a vital rolein the
reach of the products of a company to the customers.
They buy the products from thecompany and in
turn deliver to the further channel members at
their own cost. They have to maintain their own
Sales force as well all other necessary infrastructure or the
manpower necessaryfor them so that the goods pass on
smoothly and in time to the customers at the POP.The

efficiency of the Distributors can be judged by the ROI
that they achieve.ROI or Return onInvestment
is the net profit that a Distributor saves for
himself. It is determined by the totalInvestments
made divided by the total expenses. It takes into
account all the expenses for a particular company
including the cost of the stock norms that they have to
maintain for a particular company. It also takes into
account the rotation of the money made by the
distributors, the working
capital maintained and the credit policy given by the
Company and the credit policy they appliesfurther. It
also takes into account the Manpower that they have to
keep for the smooth functioning of the channel members.
In FMCG industry the healthy ROI is said to be anything
between 18%-24%.But in some cases the Distributors
can only maintain a ROI of <15%. It is mainly
because of theinefficiency of the distributor in his
distribution of the Goods from the company to
the other members of the Distribution channel. A
distributor reduces his ROI if he maintains a high credit

period and his rotation of the working capital is very
less. If the rotation is twice a month then theROI is said
to be 24%. This can be achieved by maintaining a
credit period of 10-15 days.To carry out operations, a
WD needs to recruit effective manpower. The
manpower includes thesalesman (DS), suppliers,
supervisors and computer operators. The salesman goes to
the market andrepresents the company, hence he needs to
be smart and well mannered. It becomes essential for
theWD point to recruit a staff which is capable of
effective sell in. The WD point is also required torecruit
suppliers for supplying the goods in the market. Again the
suppliers must be well manneredwith good knowledge
of the market. The WD point must ensure enough
storing place for the products at the point.The products
from the WD point moves to the retailers and the
secondary wholesellers.
4) Wholesalers:
Any product category which is high selling will have
wholesalers. Same is in the case of ITC. In the product
category - cigarettes or the next family of product
categories - Personal care products, allhave a
combination of wholesale and Retail Sale. The only

difference between the two is the off take levels,
financial capacity and sometimes infrastructure to deliver
to retailers. Normally the ratesfor wholesale is cheaper
than retail, as it is in bulk. This sometimes led to price
cutting in market.Both retail and wholesale have a role to
play. It‘s always good to have high retail throughput
(TotalRetail Sales/ Total Sales) to have higher control of

organization over the retailers. This will help
theorganization to launch new brands in future, increase
visibility at the outlets, which is just becauseof
relationship of organization salesman with Trade. At the
other end, in case of insufficient supplyfrom factories or
WSPs, there will be sufficient stock to deliver to
outlets to serve the conserve.Also, there are many
markets which are practically and financially not
possible for much organizations to cover like less than
10K markets, Here these small retailers in smaller
markets getthe stock from these wholesalers which
are located at some distance from them.
5) Retailers
These include the retail channels for Personal Care
products under the General Tradecategory. Key Retail
outlets are other large kirana shops which are not
wholesalers. They too cater to residents largely and
visitors and passerby‘s. The average sale of these
stores could vary betweenRs 10000 per month and Rs
40000 per month. These again are serviced once or
twice a week
depending on the BPM and the company and the
range of products it deals with. The mass retail outlets
are typically serviced once a week and cater to the local
populace. Their reach & ability tocater to the occasional
customer mandate their existence. They generally stock
those products whichare in demand from the customers
and have a good consumer pull The smaller SKU‘s
such assachets are popular. The company replenishes the
stocks on a fortnightly/ weekly basis and has

littleinfluence over the portfolio maintained by the
retailers. These outlets are the largest in number
andare key points for the company in terms of
reaching the masses.
For more IGNOU Solved Assignments visit – www.IGNOUHelp.in
Get Daily Updates by Facebook:
https://www.facebook.com/IGNOUHelp.in

MS-06 Solved Assignment

Uploaded by

Copyright:

Available Formats

MS-06 Solved Assignment

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

MS-06 Solved Assignment

Uploaded by

Copyright:

Available Formats

For more IGNOU Solved Assignments visit www.IGNOUHelp.

1. (a) “Marketing in the performance

user receives from a good or a service. When

Without marketing, potential customers may

plays a vital role in business because planning

be proactively involved in the success of its

such as finance together. Small business

company products in terms of quality,

these elements helps a company develop new

Generate a unique selling proposition

The Marketing Plan is a highly detailed, heavily researched and,

forces the marketing personnel to look internally in order to

This plan is aimed at individual products and product lines,

Part 1: Purpose and Mission

Part 1 of the plan is designed to provide the reader with the

e.g., introduce new product, enter new markets,

In general terms, what are the main benefits we

What is the general corporate philosophy for doing

The situational analysis is designed to take a snapshot of where

market, distribution, competitors, financial and other issues.

currently positioned in the market, etc.

Part 2: Situational Analysis

2. Describe the Current Target Market(s)

family life cycle, geographic region, lifestyle,

why do they use the product?

for a specific product

What percent of the potential

Part 2: Situational Analysis

3. Describe Current Distributor Network (if appropriate)

Describe the product‘s role within the distributor

Part 2: Situational Analysis

Part 2: Situational Analysis

5. Financial Analysis for Product or Product Line

total for company‘s product(s)

percentage of overall company sales) Note:

Part 2: Situational Analysis

6. Environmental Problems and Opportunities

Product Life Cycle Analysis

8. Summary of Current Situation

Provide a SWOT analysis for the company‘s product(s) that

Part 3: Marketing Strategy and Objectives

Those reading a marketing plan need a clear picture of the

Strategies generally fall under one of the following (or in

Sell more to same market (i.e., get current

Techniques to depart a market

Part 3: Marketing Strategy and Objectives

Part 3: Marketing Strategy and Objectives

ground to competitors. The marketing objectives section will

THESE TWO COMPANIES FOLLOW

Part 4: Tactical Marketing Programs

This is the heart of the marketing plan. It contains descriptions of

Part 4: Tactical Marketing Programs

1. Target Market Issues

case, and probable case, when developing the sales forecast.

Sales forecast for each

Part 4: Tactical Marketing Programs

In this section discuss the decisions to be made for existing or

Part 4: Tactical Marketing Programs

advertising, sales promotion, public relations and personal