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Questions and Answers
What are the two aspects stressed in creating a customer in business?
What are the two aspects stressed in creating a customer in business?
What is the primary difference between selling and marketing?
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.
__________ 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.
Services can only be offered for sale in connection with the sale of goods.
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What is the goal of marketing?
What is the goal of marketing?
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What are the major activities involved in the marketing process?
What are the major activities involved in the marketing process?
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What does the common usage of 'market' mean?
What does the common usage of 'market' mean?
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Selling and buying are separate functions in the marketing process.
Selling and buying are separate functions in the marketing process.
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What can 'market' refer to? (Select all that apply)
What can 'market' refer to? (Select all that apply)
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__________ is necessary in both collection and distribution to balance the supply with demand.
__________ is necessary in both collection and distribution to balance the supply with demand.
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Define marketing.
Define marketing.
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Differentiate between a 'want' and a 'demand'.
Differentiate between a 'want' and a 'demand'.
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What are some risks that can be insured with insurance companies?
What are some risks that can be insured with insurance companies?
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Loss on account of fall in demand, prices, competition, etc. can be insured.
Loss on account of fall in demand, prices, competition, etc. can be insured.
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What is a specification used in providing certain basic qualities to goods?
What is a specification used in providing certain basic qualities to goods?
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Price may be defined as the exchange of goods or services in terms of ________.
Price may be defined as the exchange of goods or services in terms of ________.
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Match the following pricing objectives with their descriptions:
Match the following pricing objectives with their descriptions:
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Sellers hold up goods for higher $____$ price.
Sellers hold up goods for higher $____$ price.
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Why do generally marketers prefer to sell at one price basis?
Why do generally marketers prefer to sell at one price basis?
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Under resale price maintenance, the manufacturer controls the prices at which retailers resell the products.
Under resale price maintenance, the manufacturer controls the prices at which retailers resell the products.
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What is the basic purpose of branding?
What is the basic purpose of branding?
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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
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
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What is buying allowance?
What is buying allowance?
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Which promotional method offers an advertising allowance to dealers for advertising the manufacturer's product?
Which promotional method offers an advertising allowance to dealers for advertising the manufacturer's product?
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Point of purchase advertising is primarily suitable for industrial goods.
Point of purchase advertising is primarily suitable for industrial goods.
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Sales force promotion includes bonus to sales force for achieving sales above the targeted ____.
Sales force promotion includes bonus to sales force for achieving sales above the targeted ____.
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Which of the following forms of promotion is an impersonal method of communication for mass selling?
Which of the following forms of promotion is an impersonal method of communication for mass selling?
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Personal selling is the most effective and costly form of promotion.
Personal selling is the most effective and costly form of promotion.
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What is the main objective of sales promotion?
What is the main objective of sales promotion?
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_______ is the most effective way to introduce a new product to consumers.
_______ is the most effective way to introduce a new product to consumers.
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What are some advantages of direct advertising? (Select all that apply)
What are some advantages of direct advertising? (Select all that apply)
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Personal selling is a method of communication that reaches the audience through media.
Personal selling is a method of communication that reaches the audience through media.
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What is the main objective of promotional advertising?
What is the main objective of promotional advertising?
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Direct advertising includes types like sales letters, circulars, booklets, and _______.
Direct advertising includes types like sales letters, circulars, booklets, and _______.
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Match the following qualities with a successful salesperson:
Match the following qualities with a successful salesperson:
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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
- Consumer goods: purchased by ultimate users for personal use, further classified as:
- 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
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The main factor affecting sales organization
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A good price policy is important for producers, wholesalers, retailers, and consumers
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Definition: the exchange of goods or services in terms of money
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Importance: plays a crucial role in the economy, affects sales, and influences the marketing of products and services### Importance of Price
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The market price of a product influences wages, rent, interest, and profits.
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Price is crucial for both the buyer and the seller, as it determines the exchange of goods or services.
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The success or failure of a business organization is heavily dependent on the price of its products.
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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.
