1-3

Question 1

-set of actions, or tactics, that a
company uses to promote its brand or
product in the market

Answer 1

Marketing Mix

Question 2

-putting the right product in the right
place, at the right price, at the right
time.

Answer 2

Marketing Mix

Question 3

Marketing
Mix is the set of controllable variables
that the firm can use to influence the
buyer’s response

Answer 3

Philip Kotler

Question 4

“something that can be offered to a
market in order to satisfy a want.” It
normally has physical objects and
services included. However, in a wider
context it covers not only physical
products and services but also support
services such as brand name, packaging
accessories, installation, after-sales
service, etc

Answer 4

product

Question 5

Product can be broadly classified based on

Answer 5

(1) use,
(2) durability, and
(3) tangibility.

Question 6

Based on use, the product
can be classified as

Answer 6

(a) Consumer Goods; and
*(b) Industrial Goods.

Question 7

are products that the ultimate
consumer purchases himself for direct use.

Answer 7

Consumer goods

Question 8

TYPES OF CONSUMER GOODS

Answer 8

Convenience
Shopping
Specialty
Unsought

Question 9

-bought frequently
-little planning or shopping effort
-low customer involvement

Answer 9

Convenience products

Question 10

are consumer products and services that the customer compares carefully on suitability, quality, price, and style

Answer 10

Shopping products

Question 11

are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort

Answer 11

Specialty products

Question 12

Goods that consumer either does not know about or knows about but does not normally think of buying

Answer 12

Unsought Product

Question 13

Most new and recently introduced products will fall into this class until the consumer becomes aware of them through advertising

➤ Aggressive and continuous promotion is necessary for them

➤E.g. Life-insurance, funeral services, coffin, etc.

Answer 13

Unsought Product

Question 14

These are products which are used as
input for manufacturing other
products. Unlike consumer goods,
these are not for direct consumption.
These are meant for business and non-personal use. Some examples of
industrial products are raw materials,
machines, tools etc.

Answer 14

Industrial Products

Question 15

Raw materials, components etc.

• Mostly sold to other industrial users
• Price and service key issues

Answer 15

Materials & Parts

Question 16

Industrial products used in production or operations

• E.g. IT systems, buildings infrastructure

Answer 16

Capital Items

Question 17

Operating supplies (e.g. energy) and business services (e.g. maintenance, security)

Answer 17

Supplies and services

Question 18

Based on Durability, the products can be classified as:

Answer 18

Durable Goods; and
*Non-durable Goods

Question 19

used for a long period
i.e., for months or years
together.
Examples:
refrigerator, car, washing
machine etc.

Answer 19

Durable Goods

Question 20

products that are
normally consumed in
one go or last for a few
uses
Examples:
soap, salt, pickles,
sauce etc.

Answer 20

Non-durable Goods

Question 21

Based on tangibility, the products can be classified as

Answer 21

Tangible Goods; and
Intangible Goods.

Question 22

is the amount paid in respect of
a good or service.
* It is the second most significant
marketing mix item

Answer 22

Price

Question 23

is a very crucial field of
decision because it affects the demand
for the product as well as the company’s
profitability

Answer 23

Pricing

Question 24

No company will succeed unless their manufacturing and
distribution costs are covered. The retail prices are calculated in large
quantities of goods by applying an appropriate profit margin to the
costs. The higher the rate, the higher the price is likely to be

Answer 24

Cost

Question 25

also has a big influence on the price. If the availability of a product is insufficient and the demand is high, people buy, even if the producer charges high prices. But how high the price will depend on the ability and willingness of prospective customers to pay, and their desire for the product. “In this context, price elasticity, i.e. responsiveness of demand to changes in price should also be kept in view.

Answer 25

Demand

Question 26

The price charged by the competitor for similar product is an important determinant of price. A marketeer would not like to charge a price higher than the competitor for fear of losing customers. Also, he may avoid charging a price lower than the competitor. Because it may result in price war which we have recently seen in the case of soft drinks, washing powder, mobile phone etc.

Answer 26

Competition

Question 27

Prices of some essential products are regulated by the government under the Essential Commodities Act. For example, prior to liberalization of the economy, cement and steel prices were decided by the government. Hence, it is essential that the existing statutory limits, if any, are also kept in view while determining the prices of products by the producers.

Answer 27

Government Regulation

Question 27

A firm may have different marketing objectives such as maximization of profit, maximization of sales, bigger market share, survival in the market and so on. The prices have to be determined accordingly. For example, if the objective is to maximize sales or have a bigger market share, a low price will be fixed. A brand of washing powder slashed its prices to half, to grab a bigger share of the market.

Answer 27

Marketing Objectives

Question 28

The products are made to sell to customers. * These must be made available to customers at a location where they can make transactions conveniently. * The company has to determine whether to sell to the retailer directly or through the distributors / wholesaler, etc. * It might also plan on selling it directly to customers

Answer 28

Place

Question 29

refers to the pathway used by the manufacturer for transfer of the ownership of goods and its physical transfer to the consumers and the user/buyers

Answer 29

CHANNELS OF DISTRIBUTION

Question 30

exists where there is direct sale of goods by the producer to the consumer. * This direct contact with the consumer can be made through door to door salesmen, own retail outlets or even through direct mail. * Also, in case of perishable products and certain technical household products, door-to-door sale is an easier way of convincing consumer to make a purchase.” According to Kotler, (2010).

Answer 30

Zero stage channel of distribution

Question 31

there is one middleman i.e., the retailer. * The manufacturers sell their goods to retailers who in turn sell it to the consumers. * This type of distribution channel is preferred by manufacturers of consumer durables like refrigerator, air conditioner, washing machine, etc.

Answer 31

One stage channel of distribution

Question 32

“This is the most used channel of distribution for the sale of consumer goods. * In this case, there are two middlemen used, namely, wholesaler and retailer. * This is applicable to products where markets are spread over a large area, value of individual purchase is small, and the frequency of purchase is high” Kotler, (2010).

Answer 32

Two stage channel of distribution

Question 33

When the number of wholesalers used is large and they are scattered throughout the country, the manufacturers often use the services of mercantile agents who act as a link between the producer and the wholesaler. They are also known as distributors” Kotler, (2010).

Answer 33

Three stage channel of distribution

Question 34

There are many aspects of market which determine the choice of channel of distribution. * Say for example, where the number of buyers is limited, they are concentrated at few locations and their individual purchases are large as is the case with industrial buyers, direct sale may be the most preferred choice. * But in case where number of buyers is large with small individual purchase and they are scattered, then need may arise for use of middlemen.

Answer 34

Nature of Market

Question 35

In most of the consumer goods having small value, bought frequently in small quantities, a long channel involving agents, wholesalers and retailers is used as the goods need to be stored at convenient locations. Items like toiletries, groceries, etc. fall in this category. * As against this in case of items like industrial machinery, having large value and involving specialized technical service and long negotiation period, direct sale is preferred. * In case the product is of technical nature involving a good amount of pre-sale and after sale services, the sale is generally done through retailers without involving the wholesalers.

Answer 35

Nature of Product

Question 36

A firm having enough financial resources can afford to have its own distribution force and retail outlet * But most business firms prefer not to create their own distribution channel and concentrate on manufacturing. * The firms who wish to control the distribution network prefer a shorter channel.

Answer 36

Nature of the Company

Question 37

If right kind of middlemen having the necessary experience, contacts, financial strength, and integrity are available, their use is preferred as they can ensure success of newly introduced products. * Cost factors also have to be kept in view as all middlemen add their own margin of profit to the price of the products. * But from experience it is learnt that where the volume of sales is adequate, the use of middlemen is often found economical and less cumbersome as against direct sale.”

Answer 37

Middlemen Consideration

Question 38

An essential component of a marketing mix, as it refers to a process of educating, persuading and motivating a customer to select the product to be purchased.

Answer 38

Promotion

Question 39

is achieved by means of promotion of personal sales, advertisement, publicity, and marketing. It is done primarily with a view to providing knowledge about the quality, characteristics and uses of a commodity to prospective consumers. * It stimulates the interest of potential buyers in the product, compares it with the product of the competitors and makes its decision.

Answer 39

Promotion

Question 40

It is a paid form of non-personal communication through different media about a product, idea, a service or an organization by an identified sponsor. It can be done through print media like newspaper, magazines, billboards, electronic media like radio, television, etc. It is a very flexible and comparatively low-cost tool of promotion.

Answer 40

Advertising

Question 41

This is a non-paid process of generating wide range of communication to contribute a favorable attitude towards the product and the organization. You may have seen articles in newspapers about an organization, its products, and policies. The other tools of publicity are press conference, publication, and news in the electronic media etc. It is published or broadcasted without charging any money from the firm. Marketeers often spend a lot of time and effort in getting news items placed in the media for creation of a favorable image of the company and its products.

Answer 41

Publicity

Question 42

is the most used tool for informing the present and prospective consumers about the product, its quality, features, availability, etc.

Answer 42

Advertising

Question 43

You would have encountered representatives of numerous firms knocking at your doorstep and persuading you to purchase their product. It is a direct presentation to consumers or prospective purchasers of the product. It refers to the use of salespeople to persuade consumers to act favorably and purchase the product. In the case of industrial goods, it is most effective promotional tool.

Answer 43

Personal selling

Question 44

It applies to short-term and temporary opportunities to purchase new products or to promote trials. The tool includes competitions, games, gifts, trade shows, discounts, and so on. Sometimes, promotional advertising events are conducted at retail level.

Answer 44

Sales promotion

Question 45

The 3 further Ps of marketing

Answer 45

People Process Physical Evidence

Question 46

The team involved in the delivery of the project should possess the skills and qualities needed to ensure its success (barring unforeseen mishaps). * This is perhaps especially true of customer-facing staff, whose communication and behavior will greatly impact the audience’s perception of the brand. You could well have developed the best product of its kind

Answer 46

People

Question 47

People within the Marketing Mix

Answer 47

People Who Make the Products People Who Bring the Products to the Customers People Who Talk to the Customers

Question 48

involved in a product’s delivery will significantly affect the customer’s experience, level of satisfaction, and lifetime value to your business. These processes may include (and are not limited to): * Website user experience * Delivery time * Delivery methods and service * In-store wait time * Communicating with customer support * Aftercare

Answer 48

Processes

Question 49

is all about ensuring every component involved with the product adheres to the same brand values as the product itself. This creates a consistent, convincing experience for the customer.

Answer 49

Physical evidence

Question 50

series of actions or the fundamental elements that are involved in delivering the product or service to the customer

Answer 50

Processes