Marketing Management

Section A: Objective Type & Short Questions

Part one:
Multiple choice:
I.“Image building” objectives are common in _____ type of market structure. (1)
a) Competition
b) Oligopoly
c) Monopoly
d) Monopsony
Ans-B)Oligopoly.

II. The concept of marketing mix was developed by______ (1)

a) N.H Borden
b) Philip Katter
c) Satanton
d) W.Anderson
Ans-A)N.H.Borden.

III. Marketing mix consists of ___ (1)

a) Production recognition
b) Price structure
c) Distribution planning
d) All of these
Ans-D)All of these

IV. The concept of marketing mix involves a deliberate and careful choice of organization, product, price promotion,
place strategies and___ (1)
a) Policies
b) Concept
c) Planning
d) All of these
Ans-D)All of these.

V.Operating cost for new system is added into implementation cost and is then divided by gains by improvements in
productivity is called (1)
a) Economic Value Added
b) Analysis Of Benefits
c) Return On Investment
d) Return On Public Offering
Ans-C)Return on Investment

VI. Pricing strategy used to set prices of products that are must be used with main product is called (1)

a) Optional Product Pricing

b) Product Line Pricing
c) Competitive Pricing
d) Captive Product Pricing
Ans-D)Captive Product Pricing

VII. New product pricing strategy through which companies set lower prices to gain large market share is classified
as
(1)
a. Optional Product Pricing
b. Skimming Pricing
c. Penetration Pricing
d. Captive Product Pricing
Ans-C)Penetration Pricing.

VIII. Company marketing mix that target market segments very broadly is called (1)
a. Mass Marketing
b. Segmented Marketing
c. Niche Marketing
d. Micromarketing
Ans-A)Mass Marketing

IX. What does the term PLC stands for?

(1)
a) Product life cycle
b) Production life cycle
c) Product long cycle
d) Production long cycle
Ans-A)Product life cycle

X. Which of the following is not a characteristic of “Market Introduction Stage” in PLC? (1)
a) Demands has to be created
b) Costs are low
c) Makes no money at this stage
d) Slow sales volume to start
e) There is little or no competition
Ans-B)Costs are low

Part Two

Name and define the four Ps of the marketing mix?

Ans-
The four Ps of marketing are the key factors that are involved in the marketing of a good or service. They are the
product, price, place, and promotion. Often referred to as the marketing mix, the four Ps are constrained by
internal and external factors in the overall business environment, and they interact significantly with one another.
The four Ps are
-The product (the good or service)
Product refers to a good or service that a company offers to customers. Ideally, a product should fulfill a certain
consumer demand or be so compelling that consumers believe they need to have it. To be
successful, marketers need to understand the life cycle of a product, and business executives need to have a plan
for dealing with products at every stage of their life cycles.
-The price (what the consumer pays)
Price is the cost consumers pay for a product. Marketers must link the price to the product's real and perceived
value, but they also must consider supply costs, seasonal discounts, and competitors' prices. In some cases,
business executives may raise the price to make a product seem more like a luxury or lower the price so more
consumers can try the product.
-The place (the location where a product is marketed)
Place decisions outline where a company sells a product and how it delivers the product to the market. The goal of
business executives is to get their products in front of the consumers most likely to buy them.
-The promotion (the advertising).
Promotion includes advertising, public relations, and promotional strategy. This ties into the other three Ps of the
marketing mix as promoting a product shows consumers why they need it and should pay a certain price for it.

2. Definition of 'Pricing Strategies'?

Ans-
Price is the value that is put to a product or service and is the result of a complex set of calculations, research and
understanding and risk taking ability. A pricing strategy takes into account segments, ability to pay, market
conditions, competitor actions, trade margins and input costs, amongst others. It is targeted at the defined
customers and against competitors.
Premium pricing: high price is used as a defining criterion. Such pricing strategies work in segments and industries
where a strong competitive advantage exists for the company. Example: Porche in cars and Gillette in blades
Penetration pricing: price is set artificially low to gain market share quickly. This is done when a new product is
being launched. It is understood that prices will be raised once the promotion period is over and market share
objectives are achieved. Example: Mobile phone rates in India; housing loans etc.
Economy pricing: no-frills price. Margins are wafer thin; overheads like marketing and advertising costs are very
low. Example: Friendly wash detergents; Nirma; local tea producers.
Skimming strategy: high price is charged for a product till such time as competitors allow after which prices can be
dropped. The idea is to recover maximum money before the product or segment attracts more competitors who
will lower profits for all concerned

3. What is the role of a Marketing Plan?

Ans-
The broad purpose of a marketing plan is to advance the exposure of your product or company, depending on
the specific goal of that plan. When you develop your marketing strategy, it is important to understand the
various roles a marketing plan fills when it is in effect. By understanding the roles of a marketing plan, you are
better equipped to create an effective strategy.

4. Describe the difference in Push & Pull distribution strategies?

Ans-
Push Marketing-
Push marketing takes the product to the consumer, whereas pull marketing brings the consumer to the product.
Push marketing is a promotional strategy where businesses attempt to take their products to the customers. The
term push stems from the idea that marketers are attempting to push their products at consumers. Businesses
often use push marketing when launching a new product, or when trying to stand out in a niche or crowded market

Pull Marketing-
Pull marketing takes the opposite approach. The goal of pull marketing is to get the customers to come to you,
hence the term pull, where marketers are attempting to pull customers in. Common sales tactics used for pull
marketing include mass media promotions, word-of-mouth referrals and advertised sales promotions.
Businesses generally will use pull marketing when the customer knows what he is looking for or what problem he
needs to solve, but needs pulling towards your solution as opposed to the solution offered by your competitors

Section B
Caselet-1

1. Do you agree on what Mr. Desai did to regulate control was correct?

Ans
The decision of Mr. Desai to regulate was not correct to some extent.He did not follow the marketing strategy
rather just thought about the profit of the company without thinking about the company’s channeling/Human
resource management.He should not have regulated control like this so fastly and without anybody’s concern.
He should have followed the marketing strategy of environmental scanning.He did not follow the same while
making decision regarding launching the products beyond company’s business.
For years the company had been organized along functional lines, with vice-presidents in charge of production,
purchasing, finance, marketing, personnel, engineering, and research and development. In its growth, the
company had expanded its product lines beyond business computers to include photocopying machines,
projectors, and motion-picture cameras. As time passed on, concern had arisen that its organization structure
did not provide for profit responsibility below the office of the president, did not appear to fit the far-flung
nature of the business now being conducted in many foreign countries, and seemed to emphasize the "walls"
impeding effective coordination between the functional departments of marketing, production, and
engineering. There seemed to be too many decisions that could not be made at any level lower than the
president's office.

As a result,the company should have followed the environmental scanning/monitoring policy while gathering
information regarding company’s environment,analyzing it and forecasting the impact of all predictable
environmental changes.Successful marketing depends largely on how a company can synchronise its marketing
programmes with its environmental changes.The major components which should have been followd by
Mr.Desai would have been the macro and micro environmental scanning and analysis regarding launch of
products or managing the company’s hierarchy cycle.There are few concepts in macro environmental strategy
consists of External environmental analyzing,customer,competitor,market and company analyzing and many
more .These constitute the general environment,which affects the working of all the firms.
Whereas the micro environment consists of suppliers,consumer,marketing intermediaries,etc.These are specific
to the said business or firm and affect its working on short term basis.
Mr.Desai should have followed the major concept of micro environment which is a collection of all the forces
that are close to the firm. These forces are very particular for the said business only. They can influence the
performance and day to day operations of the company. Its elements include suppliers, competitors, marketing
intermediaries, customers and the firm itself.
Same as that ,Mr.Desai should have focused on Macro marketing environment which constitutes those outside
forces that are not under the control of the firm but have a powerful impact on the firm’s functioning. It
consists of individuals, groups, organizations, agencies and others with which the firm deals during the course of
its business.
Not following the same,Mr.Desai realized that he had gone wrong while making the decisions in a hurry like,
Mr.Desai decentralized the company into fifteen independent domestic and foreign divisions, each with
complete profit responsibility. However, after this reorganization was in effect, he began to feel that the
divisions were not adequately controlled. There developed considerable duplication in purchasing and
personnel functions, each division manager ran his or her operations without regard to company policies and
strategies, and it became apparent to the president that the company was disintegrating into a number of
independent parts.Here,it clearly stated that he had gone wrong while making decision regarding
decentralization and company’s policies and strategies.If he had followed the patterns of marketing while
making the decisions for is business,his company would have been in other state.
He would have followed the proper strategy on how to withdrew the delegated authorities to the the division
managers.Taking such harsh decisions on company’s higher level hierarchy without having a meeting regarding
the same.The decision to get top corporate management approval on such important matters as (1) any capital
expenditures over Rs.5,00,000 (2) the introduction of any new products, (3) marketing and pricing strategies
and policies, (4) plant expansion, and (5) changes in personnel policies,was too harsh to implement on senior
level authorities withour prior intimation or without hearing the feedback or having a meeting regarding the
same.some of the decisions are complicated to implement on such a big business module like capital
expenditure over Rs.5,00,000/- ,as in a normal company it would be huge amount but in such a big
company,this might be a small amount regarding their products and parallels afterall the company’s products
 are although costly and easily could cross 5lakhs deal in a single deal.likewise the marketing and pricing strategy
and policy would be implemented and changed according to the market demand and supply among the
consumers,but if they wait for the decision to be implemented by corporate level management,and it gets
delayed due to different ideas/strategies of different people,it might get too delayed to be implemented in the
market among the customers.
While in a diffrent matter like introduction of new product,he might be right as launching of a new product
might take several decisions like marketing strategy,expenses on that,whether the product will last long or not
and several such matters.These matters require time and high professional mindset which can only be brought
by corporate individuals who are highly experienced and can take mighty decisions for the same.
So we can say that Mr.Desai was wrong to some extent while making decisions to regulate control on the
company’s decisions without proper concerns and modern marketing management decisions.

2. What would you have done under these circumstances?

Ans.

I would have followed the marketing strategy of environmental scanning/analysis.Mr.Desai did not follow the same
while making decision regarding launching the products beyond company’s business and made some wrong
decisions due to that.
For years the company had been organized along functional lines, with vice-presidents in charge of production,
purchasing, finance, marketing, personnel, engineering, and research and development. In its growth, the company
had expanded its product lines beyond business computers to include photocopying machines, projectors, and
motion-picture cameras. As time passed on, concern had arisen that its organization structure did not provide for
profit responsibility below the office of the president, did not appear to fit the far-flung nature of the business now
being conducted in many foreign countries, and seemed to emphasize the "walls" impeding effective coordination
between the functional departments of marketing, production, and engineering. There seemed to be too many
decisions that could not be made at any level lower than the president's office.like the decisions of decentralizing
the company into fifteen independent domestic and foreign divisions, each with complete profit responsibility .
He soon realized that the decisions he made regarding the divisions were not adequately controlled. There
developed considerable duplication in purchasing and personnel functions, each division manager ran his or her
operations without regard to company policies and strategies, and it became apparent to the president that the
company was disintegrating into a number of independent parts.If he made such decisions after proper planning
and understanding the marketing strategies,he would not have have faced problems.
If I had been there in the same circumstrances facing same problems,i would have followed the marketing strategy
of environmental analysis and the adaptive marketing to new liberalized economy-Digitalisation and customization
which states that marketing of a company/company’s products is that,marketing is a complex activity.the single
most reason that can be attributed for this complexity is rapid advancements in science and technologies.
Successful marketing depends largely on how a company can synchronise its marketing programmes with its
environmental changes.The major components which I would have followed are the macro and micro
environmental scanning and analysis regarding launch of products or managing the company’s hierarchy
cycle.There are few concepts in macro environmental strategy consists of External environmental
analyzing,customer,competitor,market and company analyzing and many more .These constitute the general
environment,which affects the working of all the firms.
Where as the micro environment consists of suppliers,consumer,marketing intermediaries,etc.These are specific to
the said business or firm and affect its working on short term basis.
I would have followed the major concept of micro environment which is a collection of all the forces that are close
to the firm. These forces are very particular for the said business only. They can influence the performance and day
to day operations of the company. Its elements include suppliers, competitors, marketing intermediaries, customers
and the firm itself.
I will focus on Macro marketing environment which constitutes those outside forces that are not under the control
of the firm but have a powerful impact on the firm’s functioning. It consists of individuals, groups, organizations,
agencies and others with which the firm deals during the course of its business.
With proper strategic planning I will develop and maintain a strategic fit between the organizations goal and
capabilities and its changing marketing opportunities.The steps which I would follow will be
-Define a clear company mission
-Setting supporting company objectives
-Designing a sound business portfolio
-Planning and coordinating marketing and other functional strategies.
Mr.Desai took wrong decision to commit the mistake of taking up the whole market uniformly at a time and made
some harsh decisions.On the other hand,I will segment the market into groups of buyers with similar needs and
preferences and then select the more attractive groups/segments as part of their marketing strategy.

I will develop marketing channels as a system of relationship existing among business that participate in the
process of buying and selling products and services.
Marketing channel decision are often harder to change then other decisions.they are of these types
-Selection of channel members
-Training of channel members
-Motivation of channel members
-Evaluation of channel members
-Modification of channel members.

So my decision to regulate will be correct to some extent as I will follow the marketing strategy as well as the profit
of the company with proper thinking about the company’s channeling/Human resource management.I would
regulate control with proper decisions with prior time and in no-hurry and with concern of each and every
corporate professional in my hierarchy.

Caselet2

1. As Mr. Sachin, what would you do now to resolve the problem of the false reports?
Ans-

As we know that Mr. Sachin, the Sales manager of the Blue Ridge Furniture Company, had just completed a two-
week trip auditing customer accounts and prospective accounts in the southern states.and his primary intention
was to do follow-up work on prospective accounts contacted by sales staff members during the past six months.
Mr. Sachin discovered that almost all the so-called prospective accounts were fictitious. The people had obviously
turned in falsely documented field reports and expense statements. Company salespeople had actually called upon
3 of 22 reported furniture stores or department stores,by which Mr. Sachin summarized that salespeople had
falsely claimed approximately 85 percent of the goodwill contacts. Further study showed that all salespeople had
followed this general practice and that not one had a clean record.
So,in order to resolve the problem of false report,Mr.sachin should make a small team of consisting of members of
upper level authority who would keep a regular check on the activities and reports of the sales-staff which will help
in regular maitainance of all the records and reports and help in keeping the right tracks of sales staff and their
follow-ups with the customers.
most importantly it will reduce the problem of false reports as the sales staff would have a fear of being catched by
seniors if they report wrongly to any of the activities like field reports and expense reports because the senior staff
would easily catch the false/forgery if any in the reports and activities if any.
The problem due to which the false reports were arising was that there was no proper and regular check on the
information system of the sales staff for a long time.as we can se,Mr.sachin too came to audit the reports of the
accounts and the follow-up work and prospective accounts contacted by sales staff that too after six months,which
is a long time.in six months the sales staff can easily create false reports that too in unity,wheras if the sales staff
were under proper supervision of the superior team,then such incidents would not have happened.
this problem can be solved with the proper Management Information System(MIS) which is a programme for
managing and organizing information gathered by an organization from various internal and external
sources.Information sources for MIS include a company’s internal records regarding marketing performance in
terms of sales,and effectiveness and efficiency of marketing actions,marketing actions,marketing
databases,marketing intelligence systems,marketing research,and information supplied by independent
information suppliers.
This will keep a proper track and record of all the sales staff and the accounts as well and will help the seniors to
maintain a proper records of all such things which will reduce the burden of the auditor as the records will be
properly maintained under proper supervision.
this process will easily resolve the problem of False reports easily and efficiently

2. What could Mr. Sachin have done to prevent this problem?

Ans-
Mr.Sachin would have many ideas to prevent the problem.we all know a fact that
Mr. Sachin decided that immediate action was mandatory although the salespeople were experienced senior
individuals. Angry as he was, he would have preferred, firing them. But he was responsible for sales and realized
that replacing the staff would seriously cripple the sales program for the coming year.
so if he fired the sales staff,it would have a effect on he would by responsible for sales and replacing the staff would
hamper the sales programme for the coming years.
So Mr.Sachin should built a similar team of the sales staff which will get trained under senior staff and his personal
supervision which will help in creating a solid sales team in a limited time span until which the existing team will be
working under the supervision of the senior members who will keep a record of their reports and account manuals.
in a year or so the new team will get trained and start working for the company with the disciplined manner as per
management information system i.e.,MIS which will help in replacing the old/false staffs one-by-one,by indulging a
new member each in 20/25 days interval. Management Information System(MIS) which is a programme for
managing and organizing information gathered by an organization from various internal and external
sources.Information sources for MIS include a company’s internal records regarding marketing performance in
terms of sales,and effectiveness and efficiency of marketing actions,marketing actions,marketing
databases,marketing intelligence systems,marketing research,and information supplied by independent
information suppliers.
So mr.Sachin will notface the same problem next time as the new sales team will be under proper supervision and
track record of all their activities.

Section C: Applied Theory

1. What is marketing mix in marketing management? What are the seven (7) elements of marketing?
Ans-
The marketing mix definition is simple. It is about putting the right product or a combination thereof in the place, at
the right time, and at the right price. The difficult part is doing this well, as you need to know every aspect of your
business plan.
The 7Ps model is a marketing model that modifies the 4Ps model. The 7Ps is generally used in the service industries.
The 7 elements of marketing are-
1. Product:

The service product requires consideration of the range of services provided, the quality of services provided and

the level of services provided. Attention will also need to be given to matters like the use of branding, warranties

and after-sale service. The service product mix of such elements can vary considerably and may be seen in

comparisons of service range between a small local building society and one of the largest in the country; or

between a small hotel offering a limited menu range and a four star hotel offering a wide range of meals.

2. Price:

Price considerations include levels of prices, discounts allowances and commissions, terms of payment and credit.

Price may also pay a part in differentiating one service from another and therefore the customers perceptions of

value obtained from a service and the interaction of price and quality are important considerations in many service

price sub mixes.

3. Place:

The location of the service providers and their accessibility are important factors in services marketing. Accessibility

relates not just to physical accessibility but to other means of communication and contact. Thus the types of

distribution channels used (e.g. travel agents) and their coverage is linked to the crucial issue of service accessibility.

4. Promotion:

Promotion includes the various methods of communicating with markets whether through advertising, personal

selling activities, sales promotion activities and other direct forms of publicity, and indirect forms of communication

like public relations.

5. People:

All human actors who play a part in service delivery and thus influence the buyer’s perceptions: namely, the firm’s

personnel, the customer, and other customers in the service environment. All of the human actors participating in

the delivery of a service provide cues to the customer regarding the nature of the service itself.

6. Physical Evidence:

The environment in which the service is delivered and where the firm and customer interact, and any tangible

components that facilitate performance or communication of the service. The physical evidence of service includes

all of the tangible representations of the services – such as brochures, letterhead, business cards, report formats,
signage, and equipment. In some cases it includes the physical facility where the service is offered, for example, the

retail bank branch facility.

7. Process:

The actual procedures, mechanism and flow of activities by which, the service is delivered the service delivery and

operating systems. The actual delivery steps the customer experiences, or the operational flow of the service, will

also provide customers with evidence on which to judge the service. Some services are very complex, requiring the

customer to follow a complicated and extensive series of actions to complete the process.

2. What are the goals or objectives of marketing?

Ans-
“the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit.
Marketing identifies unfulfilled needs and desires. It defines measures and quantifies the size of the identified
market and the profit potential. It pinpoints which segments the company is capable of serving the best, and it
designs and promotes the appropriate products and services.”
Marketing objectives are goals set by business houses to promote its goods and services to its consumers within a
specific timeframe. Marketing objectives are the strategy’s set to attain the overall growth of the organisation.
When it comes to a particular product, a company’s marketing strategy may include increasing product awareness,
providing information about product features, and reducing consumer resistance.
A marketing audit is performed, which lets a business firm to establish its strengths, weaknesses, opportunities, and
goals, after which the organisation may redefine its objectives.
The marketing objectives are significant as they assist us in realising how effective we are and they help us stay
focused. Objectives are useful only if they are grounded and realistic.
Marketing objectives are short-term achievements to help achieve long-term goals, which are mostly set on a
weekly or a monthly timeline. These objectives should help a business analyze what a business wants to achieve
from its marketing strategy
Goals: These are usually more broadstroke benchmarks that will guide you in shaping your overall marketing
strategy. Goals often state the desired results, or how the business will benefit from its objectives, including within
different key areas of the company.
Objectives: On the other hand, objectives are more clearly defined, and provide explicit direction and tactics about
the tasks required to achieve stated goals, as well as how these activities contribute to the brand’s marketing
success.
When you look to create your goals, remember to be SMART with your considerations. This snappy little acronym
stands for:
Specific: The goal centers around something specific, like a certain metric, brand focus or performance indicator.
Measurable: Your goal should never be abstract – in addition to having a specified purpose, your goal should also be
something that you can monitor or measure. This can include things like number of engaged users, increase in
traffic, resulting sales, and more,
Aspirational: Goals should inspire and motivate your efforts.
Realistic: However, it’s important not to set the bar too high – your goal shouldn’t be so aspirational that it crosses
the line into unachievable.
Time-bound: Finally, set a date. Your goal should include a timetable that defines when results will be achieved.