1. What do you mean by Marketing ? What are the features of Marketing ?
Ans - In simple term marketing may be defined as an exchange between a buyer and seller . To be a marketing transaction , the exchange should be a voluntary act. Their should be no pressure on buyer or seller for making the transaction .
Features of Marketing are as follows -
1. Movement of goods and services - Marketing is concerned with moving of goods and services from producers to customers.
2. Need and want - Marketing focuses on needs and wants of customers. All the activities of marketing are directed to satisfy needs of customers.
3. Creating utilities- Marketing creates place, time and possession abilities in goods and services.
4. Customer value- A customer should get value for the price paid , for the product . Customer will value the product on the basis of satisfaction and services from it.
5. A function - Marketing is a total function which is concerned with such activities as product planning , pricing , packaging , advertising , selling etc.
2. What are the importance of Marketing ?
Ans-1. Marketing widens the market - Marketing draws out the hidden wants of customers, create new demand and find out the possibilities of selling new products.
2. Facilitates change of ownership- It creates time, place and possession utilities for the goods and services , which is helpful to both producers and customers.
3. Marketing increases the national income- The net effort of all marketing efforts is to raise production of existing industries, more investments , etc. which increases national income.
4. Optimum utilisation of resources - By utilising the resources properly by the producers , marketing reduces the risk of wastages.
5. Raises the standard of living - With the provisions of more items of necessities, comforts and luxuries , cheaper as well as costly at its disposal, community enjoy a higher standard of living .
6. Maximum satisfaction of human wants- It serves as an effective link between business and the society , removes hindrances of knowledge , educates people, thus enables ultimately to get maximum satisfaction .
3. What are the objectives of Marketing ?
Ans - 1. Creating Demand - The firm first determine the needs and wants of the customers. The products, then should be designed according to such needs.
2. Capturing market shares - Another objective of marketing management is to capture a reasonable share of the market . Marketing methods will help the firm in capturing the market .
3. Build goodwill - Marketing management can help in building and promoting goodwill of the firm through supply of good quality products, after sale service, reasonable price, etc.
4. Attainment of consumer satisfaction - The main goal of marketing management are growth and stability through consumer satisfaction , so the firm should first determine the needs and wants of customers.
5. Profitability - The business is organised definitely to earn profit but under any circumstances profit should be from fair pricing of the product.
4. What are the differences between Marketing and Selling ?
Ans - 1.Nature - Marketing is customer oriented.
Selling is product oriented.
2. Goal - Marketing's main goal are growth and stability through customer satisfaction .
Selling's main goal is to earn more profits by increasing the sales.
3. Objective - In marketing it is philosophical attitude and an approach with long term objectives.
In selling it is a tactical routine activity with short range objectives .
4. Trade practices - Marketing involves fair trade practices while dealing with competitors and customers.
Selling involves unfair trade practices.
5. Emphasis - The thrust is on long term goals of growth and stability in marketing .
In selling the thrust is on earning maximum profits .
5. What do you mean by Marketing Mix?
Ans - Marketing Mix is used to describe the combination of the fair inputs which constitute the care of a company's marketing system . It represents the total marketing program of an enterprise.
Elements of Marketing Mix-
1. Product 2. Price 3. Place 4. Promotion .
6. What is Product ? What are the types of Product ?
Ans- A product is the starting point of all marketing activities. According to Kotler ," A product is anything that can be offered to a market for attention , acquisition , use or consumption , it includes physical objects, services , personalities , place, organisation and ideas.
Types of Products -
1. Consumer Products .
2. Industrial Products .
1. Consumer Products - The product which are available to the consumers for direct consumptions or future use are called consumer product. Consumer product may further be classified as -
(a) On the basis of Durability -
A. Durable products - The goods which are used for over a longer period like T.V. , vehicle etc.
B. Non - Durable Products - The products which are consumed over a short period time like grocery items.
(b) On the basis of buying behaviour -
A. Convenient product - This are the products which are easily available everywhere like salt, rice, bread etc.
B. Shopping Products- These are the products which are purchased after making shopping efforts.
C. Speciality Products- This goods have special importance for the customer's and are unique in nature, like car, computer, motorbike etc.
2. Industrial Products- This are the products used as inputs to produce other goods like machinery etc.
7. What is Production Mix?
Ans - Production Mix is the total number of products and items which a particular marketer offer in the market . A firm may start with one product in the beginning and may go on adding products in same line or in other lines.
The important components of Production Mix are as follows-
1. Branding 2. Packaging 3. Labelling .
8. What is Branding ? What are the types of Brand ?
Ans - A brand means a sign or symbol of quality . It is a name associated with the product. It is more than just a product . It is a contact between the customer and the creator. Branding is the practice of giving a specified name to a product from one seller.
Types of Brand -
1. Individual Brand Name - Brand names are given to products separately . Every product is promoted on the basis of a separate brand name . For example, Surf Excel , Maggie etc.
2. Family Brand Name - It is related to one line of product that is product which complete the sale cycle. For example - Amul for Milk products, Ponds for Cosmetic etc.
3. Umbrella Brand- A manufacturer name or company's name maybe used for all the products like Tata tea, Tata steel etc.
4. Combined Device - The name of product and name of the company may be used in a collective way .
9. What are the qualities of a good brand?
Ans- 1. Simple - A brand name should be simple and easily spelled out like Lux, Zen, Santro etc.
2. Eye Catching - The brand name should be eye catchy whenever it appears linked to product. The brand name should indicate some important features of the product. For example, Titan means strong , lux means illumination .
3. Symbolic - If possible, a brand name should be abbreviation .
4. Phonetic - It should be easy to hear and speak . The work should be good and sound .
5. Registration - To make brand name popular it need to get registered .
10. What are the merits of Branding ?
Ans - 1. Easy identification of Product- A customer can easily identify a product from similar products on the basis of brand name .
2. Ensures quality - A specific product ensures brand quality and customers can rely on the quality of the product .
3. Status symbol - Popular brand name give confidence and status symbol who use this products.
4. Helpful in advertising - Advertising becomes more effective when a brand name is advertised.
5. Helpful in introducing new product- When a company use their names as Brand name, it becomes easy to introduce product in the market .
11. What do you mean by Packaging ? What are the functions of Packaging ?
Ans - Packaging means wrapping , compressing or feeling goods for the purpose of their protection and convenient handling .
Functions of Packaging-
1. Protection of Product - Packaging is prepared for protecting the products from damage . Proper packing saves a product from sun , insects , breakages etc.
2. Helpful in Promotion - Packaging also helps in promoting the sale of product and an attractive packaging will attract the customers attention and help in its sale.
3. Easy Handling - Good packaging helps in proper handling of products. The product can be conveniently transported and stored if it is properly packed .
4. Identification of product- Packaging also in identification of products . Customers may recognize the product by looking at the package .
5. Proper market display - A retailer will be required to display the products in his shop to attract the customers. Properly packaged products help in their market display .
12. What are the essential of a good packaging ?
Ans- 1. It must be attractive .
2. It must be convenient to handle.
3. It must be economical.
4. It must act as a tool of advertising.
5. It must have the protective strength to protect its contents.
13. What is Labelling ? What are its functions ?
Ans- A label gives verbal information about the product to the seller. The purpose of labelling is to give the customer information about the product he is purchasing and what it and will not do for him .
Functions -
1. Identification of product - Labelling helps in identifying the product. It may easily be distinguished from other products.
2. Related to brand - Labelling creates the product to a particular brand. The brand name of the product is given on the label as it becomes easy to identify the product.
3. Introduction - The label gives the details of manufacturers along with its address and the name of the producer.
4. Instructions- The label may contain instructions for its handling and use.
5. Promotional Tool - A label may also be used as a promotional tool for the product. The information given in the label help to attract for more customers for the product.
14. What is Price ? What are the factors influence pricing decisions ?
Ans - Price is the exchange value of a product or service expressed in terms of money . So, price represents the value attached to the goods or services offered by the firm .
Factors influencing pricing decisions are as follows -
1. Objectives - The objective of the firm influence the pricing of its products or services. If a firm aim is to maximise profits then it will charge higher price. If the objective is to penetrate the market to increase sell then prices will be fixed lower.
2. Cost factor - The cost of a product is an important element in price fixation . Every price should cover the cost incurred on a product.
3. Demand - The demand of a product also influences price. When the demand for a product is more than higher price may be changed or vice versa.
4. Competition - When a firm doesn't face any competition then it will be easy to fix a price at choice. If their is a keen competition than the price fixed will be lower to stay in the market .
5. Government Policy - There may be government regulations and guidelines for fixation of prices than prices will be fixed as per those guidelines.
6. Marketing methods used - The marketing methods like channels of distribution , type of packaging , promotional methods , etc. also influence price decisions.
15. What do you mean by Place / Physical Distribution ? What are the classification of channels of distribution ?
Ans - Place element is a process by which the goods are transferred from the place of production to the place of consumption .
Following are the Channel of Distribution -
1. Zero- Level Channel ( Producer - Customer )-
In this channel , the producer sales the product directly to consumer without causing any intermediary . Example - Bata shoes , Eureka Forbes etc.
2 One - level ( Producer - Retailer - Customer )-
In this channel , only one intermediary that is retailer is used to reach the customer .
3. Two - level - channel ( Producer- wholeseller- retailer - customer )-
This is the most commonly used channel wherein addition to retailer, wholeseller is also brought in . The producer directly deals with the wholeseller in large quantities and then the wholeseller sells goods to retailers in small quantities and retailer than sells to consumers .
4. Three - level - channel ( Producer - Agent - Wholeseller - Retailer - Customer )-
In this channel , an agent comes before the wholeseller and retailer . The producer may not directly deal with the wholeseller but an agent comes between the two.
16. What are the merits and demerits of channels of distribution ?
Ans - 1. Smooth flow of goods - The distribution channel smoothens the flow of goods and services by creating time and place utilities .
2. Enhance efficiency - The component of distribution channels enhance the efficiency of the system since the producers directly dealing with consumers will be less efficient .
3. Low stock of goods - In the absence of distribution agents producer are required to keep large stocks of goods . When middlemen enter , it reduces the burden of producers .
4. Reducing cost of transactions - The cost of transactions is minimized if they are undertaken regularly dealing will reduce the cost of marketing .
5. Facilitates search - The buyer and seller search for each other in the market . This function is facilitated by distribution agents.
17. What do you mean by Promotion ? What are the elements of Promotion Mix ?
Ans- Promotion is the process of communication with the potential buyers involving information, persuasion and influence . The potential buyers are given information about the product and the gains from going for it . Promotion includes personal as well as impersonal communication with the potential buyers .
The elements of Promotion Mix are as follows -
1. Advertising 2. Sales Promotion 3. Personal Selling 4. Publicity 5. Public Relations .
18. What is Advertising ? What are its features and importance of Advertising ?
Ans - In simple words , advertising is a mass communication of information intended to persuade purchasers to buy product with a view to maximise profits .
Features of Advertising -
1. Advertising is a paid form of publicity . The cost of advertisement is born by the sponsor .
2. There is no contact between the advertiser and the customer . It is a one way communication through some advertising media .
3. Advertisement is given by a specific person , firm or a company.
Importance- 1. Higher Reach - Advertising media reaches large number of people at a time , since advertisement on T. V. or radio is seen or heard in every corner of country .
2. Creates demand for new products - New products are bought to the notice of people through advertising . When people see the product on T. V. , they become familiar with them . So it create demand for new products .
3. Different media available - There are a number of media such as T.V. , radio , newspaper , magazines etc. available for advertising the products , so an advertiser can select a suitable one .
4. Expressiveness - Advertisement can help in expressing the things in different ways such as drawings , colour , sound , pictures etc. These helps in expressing the things in a much better way.
5. Enhances Public Confidences- Customers feel more assured about the quality of products when these are advertised by sponsors.
19. What are the classifications of Advertising ?
Ans - 1. Press Media - A. Newspapers - All though many medias are available, the newspaper is concerned as an excellent medium of advertising for those who desired to reach the general public quickly and at a short intervals .
Merits - (a) Advertisements through newspaper reach the public at the lower cost as compared to other mediums of advertising ,
(b) It reaches the widest audiences as newspapers cover , wide range of interests.
(c) Newspaper advertising is broad and diversified and aimed at all ages, gender, income groups , classes and religious .
(d) It provides quick response as buying generally follows reading .
B. Magazines and journals - Magazines are the periodicals published weekly , fortnightly , monthly quater or yearly to be read normally in leisure hours. Magazines are of various types like ordinary magazines , special magazines , children's magazines , women's magazines etc.
Journals devoted to varied subjects such as commerce, management, financial analyst etc.
2. Outdoor Media -
(a) Posters - A poster is a sheet of paper depicting a message . It may be pasted on boards and walls of building at different places.
(b) Painted displays - It refers to painted bulletins and walls paintings . These may be painted directly by hand by artists .
(c) Sky writing - It is one of the most modern methods of advertising . Balloons and kites fitted with suggestive message are flown in the sky to catch the eyes of masses.
(d) Sandwich men - It is one of the old mediums of outdoor advertising . In this medium , hired man , dressed preculiarly, walked down the busy streets shouting or singing slogans of the advertising firm .
(e) Travelling displays - Travelling displays or printed or painted messages on metal or wooden sheets that are affixed in or out the vehicles like buses, trends etc.
C. Other Media - 1. Films - Advertising through films and cinemas is becoming very popular in our country . It consists of a wide range starting from ordinary sliders to short films and feature films produced for specific purpose .
2. Radio - Radio is the cheapest and most pervasive of all media of mass communication . It provides a medium that is quite effective even in rural areas.
3. Television - TV is the latest and first growing media of advertising . It combines all the four features of good advertising i.e. sound , sight , demonstration and immediacy .
4. Internet - Internet is the recent advertising media with the increase in interest users, this method has become very popular . It is an interactive medium and can deliver the message more effectively .
5. Window display - Windows are the fate of the shop that constitute the first impression of the establishment . They are used to attract persons into the shop by arousing their interest .
20 . What is Sales Promotion ? What are the methods of Sales Promotion ?
Ans - Sales Promotion refers to short term use of incentives or other promotion activities that seek to stimulate interest, trial or purchase . The main feature of sales promotion is that it draws strong and quicker response from the target audience .
Methods of Sales Promotion are as follows -
1. Discounts - A discount is a reduction of certain percentage of price from the list rice which is allowed to a customer for a limited period.
2. Free Sample - Sales persons may distribute free samples of products to certain categories to customers which is allowed to a customer for a limited period.
3. Free gifts- It refers to giving a free gift on the purchase of a particular product . For eg. a garment dealer may offer a shirt free on the purchase of two shirts .
4. Container premium - Sometimes products are put in such type of containers which may be later used by the customer for other purposes.
5. Contest - Some companies organise contest for particular section and offer gifts of its products to the winners .
