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Marketing Essentials
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Marketing Essentials

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Questions and Answers

What are the two aspects stressed in creating a customer in business?

  • Product development and pricing
  • Consumer needs identification and business organization (correct)
  • Market research and selling strategies
  • Profit maximization and resource allocation

    • What is the primary difference between selling and marketing?

    Marketing revolves around the needs and interests of the buyer, while selling revolves around the needs and interests of the seller.

    __________ is the physical transfer of goods from producer to consumer.

    Distribution

    Services can only be offered for sale in connection with the sale of goods.

    <p>False</p> Signup and view all the answers

    What is the goal of marketing?

    <p>To move products from the producer to the consumer</p> Signup and view all the answers

    What are the major activities involved in the marketing process?

    <p>Collection</p> Signup and view all the answers

    What does the common usage of 'market' mean?

    <p>a place where goods are bought or sold</p> Signup and view all the answers

    Selling and buying are separate functions in the marketing process.

    <p>False</p> Signup and view all the answers

    What can 'market' refer to? (Select all that apply)

    <p>An organization facilitating exchange of goods</p> Signup and view all the answers

    __________ is necessary in both collection and distribution to balance the supply with demand.

    <p>Storage</p> Signup and view all the answers

    Define marketing.

    <p>Marketing is a human activity to satisfy needs and wants through an exchange process.</p> Signup and view all the answers

    Differentiate between a 'want' and a 'demand'.

    <p>A want is a desired product or service, while a demand is a want backed by purchasing power.</p> Signup and view all the answers

    What are some risks that can be insured with insurance companies?

    <p>Loss on account of fire, accident</p> Signup and view all the answers

    Loss on account of fall in demand, prices, competition, etc. can be insured.

    <p>False</p> Signup and view all the answers

    What is a specification used in providing certain basic qualities to goods?

    <p>Standard</p> Signup and view all the answers

    Price may be defined as the exchange of goods or services in terms of ________.

    <p>money</p> Signup and view all the answers

    Match the following pricing objectives with their descriptions:

    <p>Pricing for target return = Business aims for a specific return on investment Market share = Company focuses on gaining a larger share of the market Profit maximization = Business seeks to earn maximum profit on total output Stabilize price = Aims to prevent frequent changes in price</p> Signup and view all the answers

    Sellers hold up goods for higher $____$ price.

    <p>price</p> Signup and view all the answers

    Why do generally marketers prefer to sell at one price basis?

    <p>To prevent unhealthy price competition</p> Signup and view all the answers

    Under resale price maintenance, the manufacturer controls the prices at which retailers resell the products.

    <p>True</p> Signup and view all the answers

    What is the basic purpose of branding?

    <p>to fix the identity of the producer of a given product</p> Signup and view all the answers

    Match the following features of a good brand: A. Should suggest something about the product B. Should be simple, short and easy to pronounce C. Should create a good image

    <p>A = purpose, quality, benefit, use, action B = simple, short, easy to pronounce, easy to advertise C = clear, attractive, original, not offensive</p> Signup and view all the answers

    What is buying allowance?

    <p>An offer of money off or temporary reduction to dealers for purchasing during a particular period of time.</p> Signup and view all the answers

    Which promotional method offers an advertising allowance to dealers for advertising the manufacturer's product?

    <p>Cooperative advertising</p> Signup and view all the answers

    Point of purchase advertising is primarily suitable for industrial goods.

    <p>False</p> Signup and view all the answers

    Sales force promotion includes bonus to sales force for achieving sales above the targeted ____.

    <p>sales</p> Signup and view all the answers

    Which of the following forms of promotion is an impersonal method of communication for mass selling?

    <p>Advertising</p> Signup and view all the answers

    Personal selling is the most effective and costly form of promotion.

    <p>True</p> Signup and view all the answers

    What is the main objective of sales promotion?

    <p>To increase buying interest at the customers’ level, attract new customers, inform the public about the new product, create a good impression, meet competition, effect off-season sales, encourage demand, establish communication, keep product memory alive, create brand image, remove customers’ dissatisfaction, and bridge gap between advertising and personal selling.</p> Signup and view all the answers

    _______ is the most effective way to introduce a new product to consumers.

    <p>Sampling</p> Signup and view all the answers

    What are some advantages of direct advertising? (Select all that apply)

    <p>Creates direct contact with customers</p> Signup and view all the answers

    Personal selling is a method of communication that reaches the audience through media.

    <p>False</p> Signup and view all the answers

    What is the main objective of promotional advertising?

    <p>Increase sales</p> Signup and view all the answers

    Direct advertising includes types like sales letters, circulars, booklets, and _______.

    <p>catalogues</p> Signup and view all the answers

    Match the following qualities with a successful salesperson:

    <p>Good appearance = Professional image Tact = Diplomatic approach Self-confidence = Belief in oneself Sound health = Physical well-being Imagination = Creative thinking</p> Signup and view all the answers

    Study Notes

    Market and Marketing

    • A market can be a place where goods are bought or sold, or it can refer to the act of buying and selling of goods to satisfy human wants.
    • In modern marketing, the focus is on the consumer and their satisfaction, rather than just the product.

    Meaning of Marketing

    • Marketing is a human activity to satisfy needs and wants through an exchange process.
    • A demand is a want for which the consumer is prepared to pay a price.
    • A need is anything the consumer feels to keep themselves alive and healthy.
    • The aim of marketing is to make sales to earn a reasonable profit for the producer.

    Objectives of Marketing

    • The objectives of marketing include:
      • Intelligent application of modern marketing policies
      • Developing policies and implementing them for a good result
      • Suggesting solutions by studying market problems
      • Finding sources for further information concerning market problems
      • Strengthening existing marketing functions
      • Taking suitable actions as required

    Importance of Marketing to the Society

    • Marketing plays a major role in today's society, connecting the consumer and the producer.
    • It helps increase the living standard of people by reducing prices and increasing the nation's income.
    • Efficient marketing reduces costs, increases employment opportunities, and helps sell surplus goods to other countries.

    Merchandising

    • Merchandising is only product planning, aiming at internal planning relating to products or services for marketing at the right time, price, and quality.

    Selling vs. Marketing

    • Selling revolves around the needs and interests of the seller, while marketing revolves around the needs and interests of the buyer.
    • Selling seeks profits by 'pushing' products, while marketing seeks profits by meeting customer needs and creating value satisfaction.

    Distribution

    • Distribution refers to the physical transfer of goods, covering the methods to get products to the market.
    • It is concerned with physical movement of goods from producer to wholesaler, retailer, and consumer.

    Goods

    • Goods can be classified as:
      • Consumer goods: purchased by ultimate users for personal use, further classified as:
        • Convenience goods: daily necessities, such as bread, soap, and sugar.
        • Shopping goods: purchased after making an enquiry, such as jewelry, furniture, and ready-made garments.
        • Specialty goods: high-value products, such as cars, refrigerators, and fancy goods.
      • Industrial goods: used for production or used in producing other products, further classified as:
        • Raw materials: basic materials, such as building stones, raw cotton, and raw jute.
        • Fabricated materials: materials that have undergone some processing, such as bricks, copper sheets, and leather.
        • Component parts: parts that have undergone some processing and are used in final products, such as batteries, tyres, and speedometer.
        • Installation: machines, buildings, and equipment that are durable for a long period, such as gas and power installation.### Accessories in Business
    • Light machines or tools used in the operation of a business
    • Not used for manufacturing a product (e.g. hand-tools, cash registers, typewriters, calculators, computers, accounting machines)

    Services

    • Tangible activities offered for sale or in connection with the sale of goods
    • Examples: consultation, banking, education, communication, medical, legal services
    • Types: personal (e.g. education, communication, medical, legal services) and business services (e.g. advising, mercantile credits, collection agencies)

    Modern Marketing

    • Covers all business activities to know all aspects of demand, product planning, distribution, and facilitating the entire marketing process
    • Importance is given to a well-coordinated marketing program aiming to attract customers
    • Features:
      • Consumer orientation
      • Begins with the customer and ends with the customer
      • Satisfaction of consumer needs
      • Market research to know current consumer needs

    Marketing System

    • An exchange between two parties, i.e., business activity
    • Includes:
      • Business institutions engaged in marketing functions
      • Marketing environment
      • Customers served by business organizations
      • Marketing tasks performed by the system
    • Producers, manufacturers, and middlemen (e.g. retailers, transporters) play a crucial role in the marketing system

    Marketing Process

    • The process by which goods and services are exchanged
    • Goals: to move products from the producer to the consumer
    • Involves three major activities:
      • Collection (aiming at the collection of products at a central place)
      • Distribution (involves the distribution of goods or products to the consumers)
      • Equalization (aims at balancing the demand and supply of goods through storage and transportation)

    Marketing Functions

    • The act, operation, and service concerned with marketing activities
    • Includes:
      • Exchange functions (e.g. buying, selling, assembling)
      • Physical functions (e.g. storage, transportation)
      • Facilitating functions (e.g. financing, risk-bearing, standardization, market information, promotion)
    • Classification: exchange, physical, and facilitating functions

    Pricing

    • The main factor affecting sales organization

    • A good price policy is important for producers, wholesalers, retailers, and consumers

    • Definition: the exchange of goods or services in terms of money

    • Importance: plays a crucial role in the economy, affects sales, and influences the marketing of products and services### Importance of Price

    • The market price of a product influences wages, rent, interest, and profits.

    • Price is crucial for both the buyer and the seller, as it determines the exchange of goods or services.

    • The success or failure of a business organization is heavily dependent on the price of its products.

    • Price affects the competitive position and market share of a business.

    Pricing Objectives

    • The main goals of pricing may be classified into:
      • Pricing for target return: Setting a target rate of return on investment and adjusting the price accordingly.
      • Market share: Pricing to achieve a desired market share and sales volume.
      • Meeting or preventing competition: Pricing to compete with or deter competitors.
      • Profit maximization: Pricing to maximize profits.
      • Stabilizing price: Pricing to maintain a stable price and prevent frequent changes.
      • Customers' ability to pay: Pricing based on the customers' ability to pay.

    Procedure for Price Determination

    • The steps involved in determining the price of a product are:
      • Determining demand for the product: Estimating the demand for the product at different prices.
      • Predicting and analyzing competitive reaction: Analyzing how competitors will react to the price.
      • Establishing expected market share: Deciding on the desired market share.
      • Selecting a pricing strategy: Choosing a pricing strategy, such as high initial price or low introductory price.
      • Considering company's marketing policies: Considering the company's marketing policies and objectives.
      • Setting the price: Finally, setting the price based on the above factors.

    Price Leader

    • A price leader is a company that initiates price changes, while a price follower is a company that responds to these changes.

    Factors Affecting Price

    • Price can move up or down due to various factors, including:
      • Changes in demand and supply.
      • Competitor behavior.
      • Productivity and efficiency.
      • Buyer behavior.
      • Perishability of goods.

    One Price or Variable Price

    • Marketers can adopt either a one-price policy or a variable price policy.
    • One-price policy involves offering the same price to all buyers.
    • Variable price policy involves selling similar products at different prices, often due to bargaining.

    Resale Price Maintenance

    • Resale price maintenance is a policy where manufacturers control the prices at which retailers resell their products.
    • This policy helps to prevent unhealthy price competition and maintain a consistent brand image.

    Branding

    • Branding is the process of identifying a product with a unique name, term, sign, symbol, or design.
    • A brand is a combination of these elements that differentiates a product from its competitors.

    Features of a Good Brand

    • A good brand should:
      • Suggest something about the product.
      • Be simple, short, and easy to pronounce and remember.
      • Be easy to advertise and identify.
      • Be permanent and original.
      • Have a pleasing sound and create a good image.

    Advantages of Branding

    • Branding has several advantages for producers, wholesalers/retailers, and consumers, including:
      • Building reputation and demand.
      • Distinguishing products from competitors.
      • Reducing advertising cost.
      • Creating customer satisfaction and loyalty.

    Packaging

    • Packaging is an important part of the marketing plan, involving the wrapping of goods for transportation, storage, or delivery.
    • Packaging serves several functions, including:
      • Product protection.
      • Product containment.
      • Product attractiveness.
      • Product identification.
      • Effective sales tool.

    Functions of Packaging

    • Packaging has several benefits, including:
      • Protecting the product during transportation and storage.
      • Making the product more attractive and appealing to customers.
      • Identifying the product and differentiating it from competitors.
      • Providing a means of communication with customers.
      • Influencing purchasing decisions.

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    Description

    This quiz is based on the book 'Essentials of Marketing' by Manmohan Joshi, covering fundamental concepts and principles of marketing.

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