Marketing Management

Page |1

Market:-Refers to a set of actual and potential buyers of a product or service.

Marketer:-Who take active part in the process of exchange

• Seller examines the needs of the possible buyers, develops a market offering and motivates the buyers
to buy the product
• Situations of rare supply, the buyer may be taking extra efforts in persuading the seller to sell the
product.

Marketing:-Marketing is finding out what people want and creating products, service or idea according to the
needs of the consumers.

Market management
• Is an art and science of choosing target markets and getting, keeping and growing customers through
creating, delivering and communicating superior customer value?

PROCESS OF MARKETING
1. Identification of Need to identify needs of the target customers and develop products and services that
satisfy such needs.
2. Creating a Market Offering: Refers to a complete offer for a product having features like size, quality,
taste etc. at a certain price.
3. Customer Value: Add value of the product so that the customers prefer it in relation to the competing
products and decide to purchase it. Warranty, After sale services, free home delivery
4. Exchange Mechanism: Process through which two or more parties come together to obtain the desired
product or service from someone giving something in return.

MARKETING AND SELLING

Basis Marketing Selling
Demand Producing product according to need of Assumes demand for the products
customer
Scope Wider term, which includes selling, Part of marketing and this is not a
Advertising. comprehensive term.
objective Profit by customers’ satisfaction and Profit by higher sales volume.
stability of the firm
Focus Efforts are buyer oriented Efforts are seller-oriented.
Efforts Joined market strategies to capture big Seller uses promotional techniques and
share in the market some manipulative policies
Start and Begin before production and continue Goods are produced, and then efforts are
end after sale. Made for their profitable selling
Approach Integrated approach to identify and Sell hook or by crook
satisfy customers approach
Supremacy Customer is the king of the market Seller is the king of the market

`
Marketing Management
Page |2

Philosophies/ Production Product Selling Marketing Societal

Environment In the earlier days With passage increase in
in which of the industrial of time, the scale of
formed revolution, the supply production→
number of improved→ competition
producers were customers among the
limited, → limited started sellers →
supply of industrial looking for Product
products → not products that quality and
able to match were superior availability
demand . in alone did not
performance, ensure
quality and survival as a
features. large number
of firms were
now selling
products of
similar quality
Starting Factory Factory Factory Market Market,
Point Society

Main Focus Quantity of Quality, Existing Customer Customer

product performance, product needs needs and
features of society’s well
product being
Means Availability and Selling Integrated Integrated
affordability Product and marketing marketing
of product improvements promoting

Ends Profit through Profit through Profit Profit Profit through

volume of product through through customer
production quality sales customer satisfaction
volume satisfaction and social welfare

FUNCTIONS OF MARKETING
1. Gathering and Analyzing Market Information:
• Begins with planning and designing a product for the consumers.
• Includes collecting and analyzing information regarding customer needs and buying habits, the
nature of competition in the market, prevailing prices, distribution network, effectiveness of
advertising media, etc
2. Standardization and Grading:
• Refers to producing goods of fixed specifications, which helps in achieving consistency in the
output. Increasing consumers’ confidence in the product quality.
• Process of classification of products into different groups such as quality, size, etc.
3. packaging and Labeling:
• protects the product from leakages, spoilage, moisture, heat and mishandling and adds value and
life to the product
• Designing the label to be put on the package. Label may vary from simple tag to complex graphics.
`
Marketing Management
Page |3

4. Branding:
• Name, term, symbol or combination of all these which uniquely identify the products
• Creates a corporate brand identity for consumer
5. Customer Support Services:
• Customer support services such as after sales services, handling customer complaints, obtaining
credit services for the satisfaction to the customers.
6. Pricing of Products:
• Generally lower the price, higher would be the demand for the product and vice-versa.
• The marketers have to properly analyze the factors determining the price of a product and take
several crucial decisions in this respect.
7. Promotion:
• Promotion of products and services involves informing the customers about the firm’s product, its
features, etc. and persuading them to purchase these products.
• Four important methods include advertising, Personal Selling, Publicity and Sales Promotion.
8. Physical Distribution
• Include decision regarding channels of distribution or the marketing intermediaries (like whole
sales, retailers) to be used
• Physical movement of the product from where it is produced to a place where it is required by the
customers for their consumption.
9. Transportation:
• Involves physical movement of goods from one place to the other.
• On the basis of nature of product , cost involved, urgency, nature of the goods etc. suitable means
of transportation can be selected
10. Storage and Warehousing:
• Wide gap between the production and actual sale of goods.
• Involves making suitable arrangements for preserving the goods till they are bought by the
consumers
• Finished goods may be required to be stored for a period when demand is expected to rise.

Marketing mix
MARKETING MIX:-Set of four controllable variables (Popularly known as, product price, place and
promotion) which marketer uses in the best possible manner to achieve its marketing objectives.

`
Marketing Management
Page |4

PRODUCT
1. Product is a mixture of tangible and intangible attributes, which are capable of being exchanged for a
value, with ability to satisfy customer needs.
2. Include services, ideas, persons, and places.
3. Three types of benefits for a customer from the product
• Functional benefits
Car provides functional utility of transportation
• Psychological benefits
Satisfies the need for prestige and esteem
• Social benefits.
Acceptance from a group

Branding -Branding is a name, term, symbol or combination of all these which uniquely identify the products
and creates a corporate brand identity for consumer. Two components—brand name and brand mark.
a. Brand Name: Part of a brand, which can be spoken, is called a brand name. Example, Asian
Paints, SONY Maggie.
b. Brand Mark: Part of a brand which can be recognized but which is not able to express. Appears in
the form of a symbol, design, Example the tiger on Britannia biscuits

2. Trade Mark: A brand or part of a brand that is given legal protection is called trademark.

Advantages to the Marketers

1. Product Differentiation: Helps a firm in differentiating its product from that of its competitors. This
enables the firm to secure and control the market for its products. Example sony , Samsung, nokia.
2. Advertising and Display Programmers: Without a brand name, the advertiser can only create awareness
for the product and branding increases the sale of the product.
3. Introduction of New Product becomes easy: If a new product is introduced under a known brand, it
enjoys the goodwill and can get the good start.
4. Differential Pricing: enables a firm to charge higher price for its products than its competitors. Nokia ,
Sony charge higher price than its competitors

`
Marketing Management
Page |5

Advantages to Customers
1. Status Symbol: Some brands have become status symbols because of their quality. The consumers feel
proud and improve their satisfaction level. Like Puma , Nokia
2. Ease in shopping: Satisfied customer with a particular brand of a product, customer need not make a close
check every time.
3. Ensures Quality: Branding means quality. Customer is always confident about the quality McDonalds ,
Haldiram

Characteristics of Good Brand

1. Suggestive it should suggest the product’s benefits and qualities. It should be appropriate to the
product’s function. e.g. Boost.Sunsilk ,Hazmola.
2. Continuing Chosen name should have staying power i.e., it should not get out of date. Lifebuoy( more
than 125 years)
3. Adaptable should be suitably flexible to hold new products, which are added to the product line e.g.,
nestle, Samsung.
4. Registration should be capable of being registered and protected legally.
5. Easy to spell should be short, easy to pronounce, spell, recognize and remember e.g., Ponds, VIP,
Rin, Vim, etc
6. Disincentive A brand name should be distinctive e.g., GOOGLE, Sprit, MICROSOFT,LG

Packaging:-anything which protects the product from leakages, spoilage, moisture, heat and mishandling and
adds value and life to the product
Levels of Packaging
1. Primary Package:
• Refers to the product’s immediate container.
• Ready to use the product (e.g., plastic packet for socks);
• Used throughout the entire life of the product (e.g., toothpaste tube, a match box, etc.).
2. Secondary Packaging:
• additional layers of protection that are kept till the product is ready for use,e.g., a tube of
shaving cream
3. Transportation Packaging:
• Further packaging components necessary for storage, identification or transportation. For
example toothpaste in cardboard boxes containing 10, 20, or 100 units.

Importance of Packaging
1. Self Service Outlets: The self-service retail outlets are becoming very popular, particularly in major cities
and towns. Example reliance fresh, easy day etc.
2. Increasing Standards of Health and Sanitation: standards of living in the country is increasing, more
and more people have started purchasing packed goods as the chances of adulteration in such goods are
less.
3. Innovational Opportunity: packaging has completely changed the marketing scene in the country. milk
can now be stored for 4-5 days, travelling pouches of paste , tea, sugar, coffee, canned juices
4. Product Differentiation, by looking at the package of a product customer can guess about quality of the
product contained in it.

Functions of Packaging
1. Product usage: The size and shape of the package should be such that it should be convenient to open,
handle and use for the consumers.
`
Marketing Management
Page |6

2. Identification: Colgate in red color or Ponds cream jar can be easily identified by its package.
3. Promotion: color scheme, photograph or typeface may be used to attract attention of the people at the
point of purchase. In self-service stores, this role of packaging becomes all the more important.
4. Enables Protection: protects the contents of a product from spoilage, breakage, leakage, pilferage,
damage, climatic effect, etc. This kind of protection is required during storing, distribution and
transportation of the product.

Labeling:-Part of the product that carries information about the product, its contents, method of use, seller etc.
Functions
1. Promotion of Products: Attractive label can attract customer and can increase the sale. Example the label
on the soft drink‘20% Extra Free.
2. Required Information By Law:- For example, the statutory warning on the package of Cigarette or Pan
Masala, ‘Smoking is Injurious to Health’
3. Identification of the Product: Labels help to identifying the product or brand on its package from number
of product also includes name and address of the manufacturer.
4. Describe the Product and Specify its Contents. Describe the product, its usage, cautions in use,etc. and
specify its contents, MRP, expiry date, manufacturing date, batch number etc.
5. Enables grading of products: Grading the products into different categories. Different type of milk is
sold by Amul brands under Red( full cream) , blue (single tone) yellow(double tone)

2. Pricing

PRICE - Price is the monetary sacrifice of a product. Price mix refers to the decisions relating to price
charged for the product.

Determination of the Price of a Product is influenced by many factors.

1. Pricing Objectives:
• Competitive Market: to survive in competitive market prices has to keep low
• Attaining Product Quality Leadership: normally higher prices are charged to cover high quality
and high cost of Research and Development.
• Obtaining Market Share Leadership: If a firms objective is to obtain larger share of the market;
it will keep the price of its products at lower
2. Extent of Competition - Apart form these internal considerations, external factors such as prices of
similar products in the market, govt.-policy, etc. should also be considered
3. Total Cost of production –Sales price = total costs + desired profit. No firm likes to sell its product
below the total cost of the product.
4. Demand for the product: If there is less demand for the product, it will not sell at a very high price.
Demand should be predicted correctly before setting the price.
5. Other marketing methods Used: Price fixation process is also affected by other elements of
marketing such as distribution system, quality of salesmen employed, quality and amount of
advertising, sales promotion efforts, the type of packaging, credit facility and customer services
provided.
6. Government and Legal Regulations: to protect the interest of public against unfair practices
Government can declare certain products as essential product and regulate its price.(petrol, diesel,
LPG)

`
Marketing Management
Page |7

3. Place Mix:-Concerned with transferring the goods and services available at the right place and right time
so that customer can purchase the same.
Includes
• Physical Distribution`
• Channels of Distribution`
Refers to a team of merchants, agents and business institutions that combine physical movement and title
movement of products to reach from the producers to the consumers.

Types of Channels
Direct Channel (Zero Level)
• Most simple and shortest mode of distribution
• Goods are made directly available by the manufacturers to customers, without involving any
intermediary
• Mail order selling, internet selling and selling through own sales force, (e.g., Eureka Forbes).

Indirect Channels
When a manufacturer employs one or more intermediary to move goods from the point of production to the
point of consumption
1. Manufacturer-Retailer Consumer(One Level Channel):
i. One intermediary i.e., retailers is used between the manufacturers and the customers.
ii. Maruti Udyog
2. Manufacturer-Wholesaler-Retailer-Consumer (Two Level Channel):
i. Wholesaler and retailer act as connecting links between the manufacturer and consumer.
ii. Consumer goods like soaps, clothes, rice,
3. Manufacturer-Agent-Wholesaler-Retailer-Consumer (Three Level Channels):
i. Manufactures use their own selling agents or brokers who connect them with wholesalers and
then the retailers.

Factors Determining Choice of Channels

1. Product Related Factors:
• Industrial products/consumer product is
✓ Usually technical, made on order and expensive products purchased by few buyers. short
channels
✓ Consumer products usually standardized, less expensive, frequently bought products. by long
channels
• Unit value
✓ Value of a product is low long channels
✓ High value products, shorter channels
• Nature of products
✓ Complex products requiring technical details as in case of most industrial or engineering
products, short channels
✓ Simple Product sold through long channel
4. Related to Company and the
Financial strength
✓ Direct selling involves lot of funds in fixed assets can be used only by financial sound company
(reliance fresh , easy day)
Degree of Control
✓ Greater control on the channel members, short channels are used (Bata India)
`
Marketing Management
Page |8

✓ Less control over the middlemen longer channel (Colgate, nestle)

3. Issue Regarding Competitors
✓ Go In line with the competitors (Maruti, Tata Motors , Hyundai)
✓ Use Different line from competitors( dell laptop sales through direct selling)
4. Market Factors:
• No of buyers
✓ Number of buyers is small, industrial products, short channels
✓ Number of buyers is large, soft drink, tooth paste etc., longer channels
✓ Size of order
✓ Order is small, example consumer products, longer channels
✓ Size of order is large, short channels.
5. Environmental Factors:
✓ Economic condition
✓ Depressed economy marketers use shorter channels to reduce the cost due to limited sales
✓ Legal constraints:-Govt may fix certain channels(petrol pumps)
`Physical Distribution:-Activities required to physically moving goods from manufacturers to the customers.
Creates place utility and time utility by provision of goods at appropriate place and at appropriate time

Activities involved in physical distribution

1. Transportation (movement of goods)
• Helps in movement of goods from the place of production to the place of consumption
• There are various means of transportation i.e., rail, road, air, pipeline, water transport etc.
• Modes are evaluated and compared on the basis of speed, frequency, flexibility, cost, and
the best suited mode is selected by the company.
2. Stock/Inventory.
• Inventory refers to maintenance of stock of goods. The inventory needs to be maintained so
that goods can be supplied whenever demanded.
• The firm must consider the benefits of inventory and the cost involved and accordingly the
optimum level of inventory should be maintained.
3. Warehousing.
• Whatever is produced is not sold off immediately. Therefore every company needs to store
the finished goods until they are sold in the market.
• Storage of goods is necessary because some goods like crops are seasonal in production.
4. Order processing. The time and steps involved between taking order from customer and
delivery of goods as per order.
• There is direct relation between the time taken in order processing and satisfaction of
customer.
• Fast order processing gives more satisfaction to customer (Dominos 30 minutes home
delivery)

5. Promotion Mix
As a Element marketing mix of Refers to combination of promotional tools
• Sales Promotion
• Advertising,
• Personal Selling,
• Public relations
Can be used in different combinations, To achieve its communication objectives of
• Reminding used for mature products since it keeps consumers thinking about the product
`
Marketing Management
Page |9

• Informing potential customers used to inform consumers about a new product

• Persuading them to buy. To tell the superiority of the product over its competitors
Advertising:-Impersonal, paid form of communication by identified sponsor to promote some goods or
service through common modes of some channels like ‘newspapers’, ‘magazines’, ‘television’, and ‘radio’.

FEATURES OF ADVERTISING
1. Paid Form: sponsor has to bear the cost to be paid to various channels of communications
2. Information: informs the buyers about the benefits they get when they purchase a particular product.
3. Identified Sponsor: A sponsor may be an individual or a firm who pays for the advertisement. The
name of reputed company may increase sale or products
4. Non-Personal Presentation: advertising is non-personal in character. There is absence of personal
appeal in advertising.

Role of Advertising in Business

• Research: Motivates firm for research and development activities to find new products and or adding
values to the existing products. Example mobile firm keep on adding new features.
• Ease in Introduction of New Product: Firm can introduce itself and its product to the public through
advertising. A new enterprise can't make an impact on the possible customers without the help of
advertising.
• Provide employment: Advertising provides direct employment to a large number of people engaged
in both in electronic and print media
• Enables Mass Production: Mass production reduces the cost of production per unit by the economical
use of various factors of production.
• Advance standard of living: Convince people to consume latest things and thereby improves their
standard of living.
• To Promotion Sales: Promotes the sale of product by informing and persuading the people to buy
them and helps in winning new customer and maintaining existing customers
• Support to media: Provides an important source of revenue to the publishers and magazines. It
enables to increase the circulation of their publication by selling them at lower rates.

Personal selling:-Face-to-face communication between a seller and buyer. It involves oral presentation by
sales persons to one or more prospective buyers for the purpose of making sales.
Features of Personal Selling
1. Personal Form: direct face-to-face dialogue takes place that involves an interactive relationship between
the seller and the buyer.
2. Development of Relationship: allows a salesperson to develop personal relationships with the likely
customers.

Qualities of good salesmen

1. Mentally healthy-: Should posses certain mental qualities like imagination, initiative, self-confidence,
sharp memory, alertness etc. able to understand the needs and preference of customer.
2. Understanding: Should have sense of understanding to convince the customers to buy. He must persuade
the customer to finalize the purchase with a sense of satisfaction.

`
Marketing Management
P a g e | 10

3. Flexibility in approach:-: Should interact with customers with a flexible approach i.e., try to persuade
different types of customers with different reasons.
4. Full Knowledge of the product and the company: should have full knowledge of the product and the
company he is representing. He should able to explain every feature of the product.
5. Inspired to trust:-:-: Should be co-operative and courteous. He should not feel irritated if the buyer puts
up many questions even if the questions are irrelevant.
6. Notable personality and sound health: - Should have good b
7. uild and be well dressed. Customers will be impressed by the salesman’s pleasing personality. He is to
travel therefore should have good health.
8. Superior communication skills-: Should be good in conversations and able to convince customer and
create the need in his mind of customer.

Difference
Basis Advertisement Personal selling
Communication Impersonal form of communication. Personal form of communication
Message Transmission of standardized Message is tailor made
messages.
Flexibility Inflexible as the message can’t be Highly flexible.
adjusted to the needs of the buyer.
Coverage It reaches masses. Only a limited number of people can be
contacted
Cost Cost per person reached is very low. The cost per person is quite high in the
case of personal selling
Timer period Cover the market in a short time Take a lot of time to cover the entire
market
Channel Makes use of mass media such Makes use of sales staff, which has limited
television, radio, newspaper, and reach.
magazines.
Feedback Lacks direct feedback. Provides direct and immediate
feedback..
Suitability more useful in marketing to the ultimate Helpful in selling products to the
consumer’s who are large in numbers industrial buyers

Sales promotion
Refers to short-term incentives, which are designed to encourage the buyers to make immediate purchase
of a product or service boost the sales of a firm.

Methods of sales promotion

1. Rebate:
• Under it in order to clear the excess stock, products are offered at some reduced price.
• For example, giving a rebate by a car manufacturer to the tune of 12,000/- for a limited period of time.
2. Discount:
`
Marketing Management
P a g e | 11

• Under this method, the customers are offered products on less than the listed price.
• For example, giving a discount of 30% on the sale of Liberty Shoes. Similarly giving a discount of
50% + 40% by the KOUTONS.
3. Refunds:
• Under this method, some part of the price of an article is refunded to the customer on showing proof of
purchase.
• This is commonly used by food product companies, to boost their sales.
• For example, refunding an amount of 5/- on showing the empty packet of the product priced 100/-.
4. Product Combination: Under this method, along with the main product some other product is offered to
the customer as a gift. The following are some of the examples:
• Offer of a pack of ½ kg of rice with the purchase of a bag of Aatta (wheat flour),
• Get 128 KB Memory Card Free with a Digicam’ or Buy a TV of 25+ and Get a Vacuum Cleaner Free
5. Quantity Gift:
• Under this method, some extra quantity of the main product is passed on as a gift to the customers.
• For example, 25% extra toothpaste in a packet of 200 gm tooth paste. Similarly, a free gift of one RICH
LOOK shirt on the purchase of two shirts.
6. Instant Draw and Assigned Gift:
• Under this method, a customer is asked to scratch a card on the purchase of a product and the name of
the product is inscribed thereupon which is immediately offered to the customer as a gift.
• For example, on buying a car when the card is scratched such gifts are offered – TV, Refrigerator,
Computer, Mixer, Dinner Set, Wristwatch, T-shirt, Iron Press, etc.
7. Lucky Draw:
• Under this method, the customers of a particular product are offered gifts on a fixed date and the
winners are decided by the draw of lots.
• While purchasing the product, the customers are given a coupon with a specific number printed on
it.On the basis of this number alone the buyer claims to have won the gift.
• For example, ‘Buy a bathing soap and get a gold coin’ offer can be used under this method.
8. Usable Benefits:
• -Under this method, coupons are distributed among the consumers on behalf of the producer. Coupon is
a kind of certificate telling that the product mentioned therein can be obtained at special discount.
• It means that if a customer has a coupon of some product he will get the discount mentioned therein
whenever he buys it. Possession of a coupon motivates the consumer to buy the product, even when he
has no need of it.
• Such coupons are published in newspapers and magazines.
9. Full Finance @ 0%:-
• Under this method, the product is sold and money received in installment at 0% rate of interest.
• The seller determines the number of installments in which the price of the product will be recovered
from the customer.
• No interest is charged on these installments.
10. Samples or Sampling:-
• Under this method, the producer distributes free samples of his product among the consumers. This
method is used mostly in case of products of daily-use, e.g., Washing Powder, Tea, Toothpaste, etc.
• Thus, the consumers willy-nilly make use of free sample. If it satisfies them, they buy it and in this
way sales are increased.
11. Contests:
• Some producers organise contests with a view to popularizing their products.
• Consumers taking part in the contest are asked to answer some very simple questions on a form and
forward the same to the company.
`
Marketing Management
P a g e | 12

• Result is declared on the basis of all the forms received by a particular date

Public Relations Tools

Meaning involves a variety of programmes to promote and protect a company’s image or its products to
strengthen relations with various stakeholders like customers, shareholders, employees, suppliers, investors
etc.

Public relations helps in achieving the following marketing objectives:

1. Building awareness:
• Public relations department can place stories and dramatize the product in the media. This will
build marketplace excitement before the product reaches the market or media advertising takes
place.
• This usually creates a favorable impression on the target customer.
2. Building credibility:
• If news about a product comes in the media whether print or electronic it always lends
credibility and people believe in the product since it is in the news.
3. Stimulates sales force: It becomes easier for the sales force to deal with the retailers and convince
dealers if they have already heard about the product in the news before it is launched. Retailers and
dealers also feel it is easier to sell the product to the ultimate consumer.
4. Lowers promotion costs: Maintaining good public relations costs much less than advertising and
direct mail. However, it requires a lot of communication and interpersonal skills to convince the media
to give space or time for the organisation and its product.

The public relations department performs five functions:

1. Press relations:
• Information about the organisation needs to be presented in a positive manner in the press.
• Generating news requires skill in developing and researching a story and getting the media to
accept press releases is a difficult task.
• The public relations department is in contact with the media to present true facts and a correct
picture about the company.
2. Product publicity:
• New products require special effort to publicize them and the company has to sponsor such
programmes.
• The public relations department manages the sponsoring of such events.
• The company can draw attention to new products by arranging sports and cultural events like
news conferences, seminars and exhibitions.
3. Corporate Communication:
• The image of the organisation needs to be promoted through communicating with the public
and the employees within the organisation.
• This is usually done with the help of newsletter, annual reports, brochures, articles and audio-
visual materials. Companies rely on these materials to reach and influence their target markets.
• Speeches by the company’s executives at a meeting of trade associations or trade fairs can
really boost the company’s image.

4. Lobbying:
• The organisation has to deal with government officials and different ministers in charge of
corporate affairs, industry, finance with respect to policies relating to business and the
economy.

`
Marketing Management
P a g e | 13

• The government also wants to maintain a healthy relationship with associations of commerce
and industry while formulating industrial, telecom, taxation policies, etc.
• The public relations department then has to be really positive in promoting regulations that
affect them.
5. Counseling:
• The company can build goodwill by contributing money and time to certain causes like
environment, wildlife, children’s rights, education, etc.
• Such cause-related activities help in promoting public relations and building goodwill.

Important Case Studies

(Function of Marketing)
Q.1 Radhika was a student of Business studies of class XII. Her father was a farmer who grew different
varieties of rice and was well-versed about various aspects of rice cultivation. He was also selected
by the government for a pilot-project on rice cultivation. As a project-work in Business Studies she
decided to study the feasibility of marketing good quality rice at a reasonable price. Her father
suggested her to use internet to gather customers’ views and opinions. She found that there was
ahuge demand for packaged organic rice.She knew that there were no pre-determined specifications
in case of rice because of which it would be difficult to achieve uniformity in the output. To
differentiate the product from its competitors, she gave it the name of ‘Malabari Organic Rice’ and
classified it into three different varieties namely – Popular, classic and Supreme, based on the
quality. She felt that these names would help her in product differentiation.
Explain the three functions of marketing, with reference to the above paragraph.
(CBSE 2015)
Ans: The following three functions of marketing are being performed in the given case:
1) Marketing Research: Marketing research means gathering and analysing market information.
Marketing research is necessary to identify the needs and wants of customers. This also helps the firm
to identify and analyse the various business opportunities and threats. As Radhika has studied the
market and gathered customers’ views and opinions through internet, she has performed the function of
marketing research.
2) Standardisation and Grading: Standardisation means producing good sof predetermined standards or
specifications as regards quality, price and packaging of the product. Standardisation ensures the buyers
that goods conform to the predetermined standards and thus it reduces the need for inspection and
testing of the products. Grading is the process of classification of goods into various groups or classes
`
Marketing Management
P a g e | 14

on the basis of quality, measurement, size, etc. in the given case, Radhika knew that there were no
predetermined specifications in case of rice because of which it would be difficult to achieve uniformity
in the output. Thus, she decided to classify the product into three different varieties based on the
quality. Thus, she has performed the ‘standardisation and grading’ function of marketing.
3) Branding: Branding is the process of assigning a name, symbol, design or mark to a product in order to
differentiate it from the competitors’ products. Thus, it gives a separate identity to the product. In the
given case, Radhika has performed this function of marketing by giving the brand name ‘Malabari
Organic Rice’ to differentiate her product.
(Marketing Management Philosophies)
Q.2 Mansi, a shoe manufacturer for school students, decided to maximise her profits by producing
and disturbing at large scale and thereby reducing the average cost of production.
I. Identify the marketing management philosophy adopted by Mansi.
II. Explain this philosophy on the basis of (a) main Focus (b) Means and Ends. (2012)
Ans: (i) The marketing management philosophy adopted by Mansi is ‘production Concept.’
(ii) (a) Main Focus: The main focus of this philosophy is on the quantity of the product.
(b) Means and Ends: This philosophy believes in making the wide availability of products at
affordable prices and earning profits through volume of production.

Q.3 Nisha, a school bag manufacturer, decided to improve the product for profit maximization and
thus added a water-bottle holder to the existing design.
I. Identify the marketing management philosophy adopted by Nisha and
II. Explain this philosophy on the basis of (a) Main Focus and (b) means and Ends.
(Delhi 2012, Marks 3)
Ans: (i) The marketing management philosophy being adopted by Nisha is ‘product Concept.’
(ii)( a) Main Focus: The main focus of this philosophy is to improve the quality, features, and performance of
the product.
(b) Means: Product improvement, Ends: profit through product quality.

Q.4 Ayesha is manufacturing lunch-boxes for school-going children. To maximise profit she decided
to improve the quality and added a warmer for the lunch-boxes. Due to this improvement in the
product, the sale is increasing day-by-day. Identify the marketing philosophy involved.
(CBSE 2012 C)
Ans: The marketing philosophy involved is ‘Product Concept.’

Q.5 Jasdeep, a dealer in school uniforms, decided to maximise his profit by using different aggressive
promotional efforts.
I. Identify the marketing management philosophy adopted by Jasdeep.
II. Explain the philosophy on the basis of (a) Main Focus (b) Means and Ends.
Ans: (i) The marketing management philosophy adopted by Jasdeep is ‘Selling Concept.’
(ii)( a) Main Focus: The main focus of this concept is on existing product.
(b) Means: Selling and promotion. Ends: profit through sales volume.

Q.6 (Value –Based)The management of a cosmetic manufacturing company is spending a lot of

money on advertisement to sell their products.
`
Marketing Management
P a g e | 15

a. Name the marketing philosophy used by the company.

b. What values will be affected if the company starts using false or misleading statements in their
advertisement to increase the sale of their products.
Ans: (a) The marketing philosophy used by the company is ‘Selling Concept’.
(b) Following values will be affected if the company starts using false or misleading statements in their
advertisements to increase the sale of their products.
1) Value of honesty.
2) Value of fairness.
3) Value of truthfulness.
4) Value of concern for others.

Q.7 Beauty Products Ltd. is a natural and ethical beauty brand famous for offering beauty products
for men and women. The company uses plant based materials for its products and is the No. 1
beauty brand in the country. It not only satisfies its customers but also believes in overall
protection of the planet. Identify the marketing management philosophy being followed by
‘beauty Products Ltd.’ (2015)
Ans: The marketing management philosophy being followed by ‘Beauty products Ltd.’ is societal Marketing
Concept.’

(Elements of Marketing Mix)

Q.8 ‘Hayaram’ is a famous chain selling a large variety of products in the Indian market. Their
products include chips, biscuits, sweets and squashes. It charges a comparatively higher price
than its competitors as it sells quality products. Besides, it offers regular discounts to its
customers and easy credit terms to its retailers. It has five of its own retail. It also sells its
products through various grocery stores so that the products are made available to customers at
the right place, in the right quantity and at the right time. It regularly uses different
communication tools to increase its sales.
The above para describes the combination of variables used by ‘hayaram’ to prepare its market
offering. Identify and explain the variables. (Delhi 2015)
Ans: The combination of variables used by ‘Hayaram’ to prepare its market offering are product, price,
place and promotion. These variables are explained below:
1) Product: A product is anything that can be offered to the public for sale. It may be a physical object,
service or an idea. The important decisions regarding the product include its designing, quality,
features, branding, packaging and labelling.
Line Quoted: Their products include chips, biscuits, sweets and squashes.
2) Price: Price denotes the value of a product or service in terms of money. It plays an important role in
the marketing of goods and services. No product or service can be launched without determining its
price. A marketer has to pay attention to various factors while determining the price. of a product, e.g.,
product cost, pricing objective, extent of competition in the market etc. the important decisions
regarding the pricing of a product include:
I. Determining the price of a product or service.
II. Determining the percentage of discount to be offered.
III. Determining the credit policy of the firm.
Line Quoted: . It charges a comparatively higher price than its competitors as it sells quality products.
Besides, it offers regular discounts to its customers and easy credit terms to its retailers.
`
Marketing Management
P a g e | 16

3) Place: One goods are manufactured and priced, these must be made available to customers at the right
place, in the right quantity and at the right time. A firm must appropriately decide the dealers or
intermediaries for the distribution of goods. Other important decisions comprise managing the
inventory, warehousing, storage, tranporation of goods, etc.
Line Quoted: It has five of its own retail. It also sells its products through various grocery stores so that
the products are made available to customers at the right place, in the right quantity and at the right
time.
4) Promotion: Promotion is the process of using various tools of communications for promoting a product
or service. Advertising, sales promotion, personal selling and publicity are the main tools of promotion
used by the sellers.
Line Quoted: It regularly uses different communication tools to increase its sales.

Q.9 Zoom Udyog, a car manufacturing company, has started its business with Zoom-800 and and
slowly launched Zoom-1000, Wagon-Z, Swy-fy etc. and offered various services like after sale
service, availability of spare parts etc. Identify the element of marketing mix referred here.
(CBSE Sample Paper 2015)
Ans: Product mix.

Q.10 ‘Maruti vega Ltd.’ entered into the market with coloured television and have now introduced
products like audio systems, air-conditioners, washing machines, etc. The company is not only
offering the products but also handling complaints and offering after-sales services. Identify the
element of marketing-mix discussed here. (CBSE 2015)
Ans: Product mix.

Q.11 A consumer products manufacturing company is offering a number of consumer products like
toiletries, detergent powder, food products etc. Identify the element of marketing mix referred
here. (CBSE 2015 C)
Ans: Product mix.
(Classification of Products)
Q.12 ‘Demand for wood will be derived from demand for furniture and other wooden items in the
market.” This is an example stating the characteristic of one of the categories of products. Name
the category. State two other characteristics of this category of products.
(CBSE 2009 C)
Ans: This is an example stating the characteristic of ‘industrial Products.’ Two other characteristics of this
category of products are stated below:
I. The numbers of buyers of industrial products are usually limited.
II. The sale of industrial products is generally made with the help of shorter channels of distribution.
(Product related Decisions)

Q.13 As a project work in Business Studies the Commerce students of ‘Himachal Public School.’
Himachal thought of preparing apple-jam from the apples grown in their school premises and to
sell it in the school annual-fate. They approached the Principal, who not only appreciated the
students but also gave her consent for the same. The school decided to donate 50% of the revenue
generated from the sale to a nearby orphanage. After the school fete the school also decided to

`
Marketing Management
P a g e | 17

extend this project to provide employment to visually challenged and disadvantaged sections of
the society on regular n basis.
a. List any four product-related decisions which the students had to take.
b. Suggest any two functions that the ‘Label’ of the jam-bottle must perform.
c. Identify ‘two values’ communicated to the society, by this project of ‘Himachal Public School’
Himachal. (CBSE 2013 C)
Ans: (a) Four product - related decisions which the students had to take are;
1. Product Branding.
2. Product Packaging.
3. Product labelling.
4. Product pricing.
(b) Two functions that the ‘Label’ of the jam – bottle must perform are suggested below:
1. Carrier of Information: Label of the jam-bottle must carry all the necessary information about the
product such as name and address of manufacturer, weight of the product, ingredients used, date of
packing, date of expiry, M.R.P. etc.
2. Promotion of the product:Label of the jam-bottle must provide promotional message. A good label can
attract customers and lure them to buy the product.
(c) Two values communicated to the society; by this project of ‘Himachal Public School’ Himachal are;
1. Charity to help orphans.
2. Providing employment opportunities to visually challenged and disadvantaged sections of the society.
Q.14 (Value –Based) Crackers Ltd., a fire-cracker manufacturing company launched some new
products on the eve of Diwali in the market, which attracted many buyers. To meet the increased
demand the company employed children from nearby villages. Although products were in great
demand, appropriate safety warnings for use were not mentioned on the labels, which led to
many accidents.
I. Identify and explain the important the important product related decision that was not taken
into consideration by the company.
II. Also identify any two values which were violated by the company.
(2014 Foreign)
Ans: (i) The importantproduct related decision that was not taken into consideration by the company is
‘Labelling;.
Labelling: Labelling is the process of designing the label and putting it on the package to provide information
regarding the product, its contents, the name and address of manufacturer, direction for using the product, date
of manufacture, etc.
(ii) Values violated by the company are;
▪ Respect for law (Employing children as labour).
▪ Concern for safety of others.

Q.15 (Value-Based) ABC Crackers Ltd., a fire-cracker manufacturing company launched some new
products on the eve of Diwali in the market, which attracted many buyers. To meet the increased
demand the company employed people from nearby villages from where there is a lot of
unemployment. Because of the good behaviour of the management with the employees, more and
more people wanted to join the company. As the products were in great demand in the market, a
competitor imitated the products. The products of the competitor were not accepted by the
consumers as it was a status symbol to buy the products of ABC crackers Ltd. because of their
quality.

`
Marketing Management
P a g e | 18

a. Identify and explain the product-related decision because of which consumers preferred the
products of ABC Crackers Ltd.
b. Also identify any four values which ABC crackers Ltd. wanted to communicate to the society.
(CBSE 2014)
Ans: (a) The product-related decision because of which consumers preferred the products of ABC Crackers
Ltd. is ‘Branding.’
Branding: Branding is the process of assigning a distinctive name, symbol, design or mark to a product in
order to differentiate it from competitive products. Thus, it gives a separate identity to the product.
(b) Four values which ABC Crackers ltd. wanted to communicate to the society are;
I. Providing quality products.
II. Providing employment opportunities in the rural areas.
III. Development of rural areas.
IV. Good behaviour.

Q.16 You company has set up a coconut hair-oil factory in Coastal Kerala, with a production capacity
of 10,000 bottles of 100 ml per day. The company plans to market the hair-oil with brand name
‘Kale Kesh’. Design a label for the hair oil bottles.
(CBSE 2015 C)
Ans: The design of a label for the hair oil bottles is given below;
Kale Kesh
Net Volume : 100 ml
MRP : Rs. 80 (inclusive of all taxes)
Batch No.: KK-01
Manufactured by : Janta Oils Pvt. Ltd.
Manufacturing Date: 25/08/2015
Expiry Date: 24/08/2017

(Features of a Good Brand Name)

Q.17 You have been appointed brand manager of Ford Motors. The company is to introduce a
compact small car in the Indian market. The name of the car is yet to be decided. You have been
asked to chair a brain storming session. Before the suggestions come forward you have to briefly
explain the participants as to what constitutes a good brand name.
Ans: Constituents of a Good brand Name:
1. Simple: Brand name should be short and simple. It should be easy to spell, pronounce, and remember.
2. Unique: Brand name should be unique and distinctive.
3. Attractive: Brand design and look should be attractive and eye catching.
4. Suggestive: Brand name should be suggestive i.e., it must suggest the features or utility of the product.
5. Durable: Brand name should have a staying power. Its life should not be affected by societal changes
like change in fashion, style etc.
6. Legally Protectable: The brand name should be capable of being registered and legally protectable.

Q.18 Kumar Ltd. decided to produce a liquid soap for cleaning the utensils under the brand name
‘SHINE’. State three characteristics which are being fulfilled by the brand decided by this
brand name. (CBSE Sample Paper 2014)
Ans: Three characteristics which are being fulfilled by this brand name are stated below;
1. Short and simple.

`
Marketing Management
P a g e | 19

2. Easy to pronounce and remember.

3. Suggest the product’s benefits and qualities.

Q.19 As a publisher, you have published a new book on marketing management. What factors will you
consider while determining the price of this book?
Ans: As a publisher, I will consider the following factors while determining the price of this book.
1. Costs involved in publishing the book e.g., while determining the price of this book.
2. Utility of the book and its probable demand.
3. Extent of competition in the market.
4. Extent of free samples required for teachers.
5. Paying capacity of the target students.
6. Discount to be offered to the shopkeepers.
7. Price of similar books in the market.
8. Profit margin required.
(Choice of Channels of Distribution)
Q.20 Bajaj, the marketing manager of a reputed watch company, is faced with the problem of
selecting the channel level for the company’s new expensive watch. Which channel level should
he select? Give any 2 reasons to support your answer.
Ans: He should select one level channel.
One Level Channel

ManufactureRetailer Customer
Two reasons in support of my answer are;
I. One level channel is usually suitable for specially goods like expensive watches.
II. Expensive watch is a slow moving item, so more intermediaries can’t held the stock for the same.

Q.21 (Value-Based) Mr. Ajay was appointed a marketing head of ‘Alfa Enterprises’ manufacturers of
toothpastes and toothbrushes. His target sale was 2,000 units a month. Apart from thinking
about various channels of distribution to achieve the target, he himself started visiting schools in
backward areas. He found that even after taking various steps and counselling, some school
children had not started brushing their teeth. He investigated and found that they could not
afford to buy toothbrush and toothpaste. So, with due permission, he started donating 200
toothbrushes and toothpastes every month to the school.
I. Identify the channel of distribution ‘Mr. Ajay’ would adopt for distribution of toothpastes and
toothbrushes and justify it by giving one reason.
II. State any four values which Mr. Ajay wants to communicate to the society. (Delhi 2013)
Ans: (i) The channel of distribution that Mr. Ajay would adopt for distribution of toothpastes and toothbrushes
is ‘Indirect / Longer Channel.’ This is because he is selling consumer products.
(ii) Values which Mr. Ajay wants to communicate to the society are;
1. Charity
2. Concern for others
3. Spreading health awareness.
4. Promoting hygienic and healthy habits.
(Promotion / Communication Tools)
Q.22 ‘Various tools of communications are used by the marketers to promote their products;, Answer
the following questions;

`
Marketing Management
P a g e | 20

a. Why do companies use all tools at the same time?

b. Name and explain the most commonly used non-personal tool of promotion which is paid for by
the marketers.
c. Which tool of promotion will primarily be used for the following?
I. To promote or protect a company’s image or its individual products.
II. An existing product meant for mass usage by literate people.
III. To introduce a new product to a particular class of people through door to door visits.
IV. To get good corporate image without being paid for. (Sample Paper 2014)
Ans:
a. The companies use all tools at the same time because of various factors such as nature of market,
nature of product, availability of financial resources and objectives of promotion etc.
b. The most commonly used non-personal tool of promotion which is paid for by the marketers is
‘advertising.’ Advertising is a non-personal form of communication which is paid for by the marketers
to promote a product or service or an idea. The most common modes of advertising are: radio, T.V.,
newspapers, magazines, internet, hoardings, banners, posters, etc.
c. The tools of promotion primarily used in different cases are;
I. Public Relations
II. Advertisement
III. Personal Selling
IV. Publicity
Q.23 A salesman approaches you to promote the sales of a ‘water purifier.’ Which communication tool
is the marketer using by sending a salesman at your door step? Explain the role of this tool to a
businessman. (CBSE 2009 C)
Ans: The marketer is using the ‘personal Selling’ tool of communication for promoting the sales of water
purifiers.
Role of Personal Selling: (See Page No. 310 – 311)

Q.24 ‘You don’t close a sale, you open a relationship, if you want to build a long-term successful
enterprise.’ Identify the communication tool used by the marketer. State any two features of this
communication tool. (CBSE 2014 C)
Ans: The communication toolused by the marketer is ‘Personal Selling.’
Features of Personal Selling: (see Page No. 312)
(Methods /Techniques of Sales Promotion)

Q.25 (Evaluation) Hindustan Unilever Ltd. is a listed company. The company launched a new
detergent powder in the market under the name ‘Quick Wash.’ Quick wash is powered with a
path-breaking technology – it reduces water consumption and time taken for rinsing by 50%.
a. What is a listed company?
b. Identify the brand used by the company for promoting its new launch.
c. Identify any two characteristics which this brand possesses.
d. Suggest any two sales promotion techniques to company for this product.
e. Identify any two values which the company wants to promote.

Ans:
a. A listed company is one whose shares are listed on a stock exchange for trading.
b. Quick Wash
c. The brand ‘Quick Wash’ possesses the following features;

`
Marketing Management
P a g e | 21

1. It is easy to pronounce, recognise and remember.

2. It suggests the utility of the product.
d. Two sales promotion techniques suggested to the company for this product are;
1. Quantity Gift (For example, Buy 5 kg. and get one Kg. free).
2. Sampling(Giving free samples of the product to the customers).
e. Values:
I. Save water
II. Save time.

Q.26 Identify the method of sales-promotion in the following cases:

I. A mobile company offers a discount of Rs. 1,000 to clear off excess inventory.
II. A customer gets Rs. 5 off on return of an empty wrapper while making a new purchase of the
same product.
III. A company offers a pack of ½ kg. of sugar with the purchase of a 5 kg. bag of wheat flour.
IV. A company offers 40% of extra shaving cream in a pack of 500 gms.
V. Scratch a card and get a gold coin with the purchase of a cold drink.
VI. Purchase goods worth Rs. 50,000 and get a holiday package worth Rs. 10,000 free.
(CBSE Sample paper 2014, Marks 6)
Ans: (i)Rebate (ii)Refund (iii)Product-combination (iv)Quantity – gift (v)Instant draws and
assigned gift (vi)Lucky Draw.
(Public Relations)
Q.27 Radha found a worm crawling out a newly opened tetra pack of a juice manufactured by a
reputed company, Zest Ltd. She went back to the shopkeeper from whom the pack was
purchased who directed her to call up the customer care centre. when all her efforts failed, she
went to a consumer activist group to seek help. The group decided to help Radha and take
measures to impose restrictions on the sale of the firm’s products batch and urge customers to
refrain from buying the products of the company. Zest Ltd. lost its image in the market. The CEo
gives the responsibility of bringing back the lost image of the company to a manager.
a. Identify the concept of marketing management which will help the Manager getting the firm out
of the above crisis.
b. Also explain the role of above identified concept by stating any three points.
(CBSE Sample Paper 2015)
Ans: (a) Public Relations
(b) Role of Public Relations:
1. Product Publicity: Public relations help to promote the existing as well as new products or services
offered by the organisation.
2. Image building: Public relations help to create a positive image of the organisation in the minds of
people through regular interactions, press release, newsletters, interviews, events, functions etc.
3. Free Flow of Information: Public relations ensure free flow of information between the organisation
and the public necessary for the survival of any business.
(Miscellaneous)

Q.28 (Value-Based) Kayco Ltd. is manufacturing detergents. They decide to launch a new range of
herbal products. As they are in a hurry, they have tested products on animals only. The necessary
information is missing on the package. The management also plans to launch a new factory in a
tribal area where the required products are easily available and the labour-men, women and

`
Marketing Management
P a g e | 22

children are available for work at low wages in the absence of development opportunities and
schools.
a) Which values do you find disturbing in the above paragraph?
b) Will the decision to install a new unit in a tribal area help society? Highlight the social values
involved in this decision. (CBSE Sample Paper 2013, marks 4)
Ans: (a) The disturbing values in the above paragraph are;
1. Testing on animals is banned.
2. Not providing the necessary information about the product on its package is the violation of ‘Right to
be Informed’.
3. Child labour is banned.
4. Payment of wages lower than minimum wages is not allowed.
(b) Yes, the decision of installing a new unit in a tribal area will definitely help in the upliftment and
development of tribal society.
The social values involved in this decision are;
1. Development of tribal / remote areas.
2. Raising the standard of living of tribal society by providing equal employment opportunities to the
tribal men and women.
3. Providing education facilities for tribal children as the child labour is totally banned.
4. Facilitating growth opportunities for other ancillary industries;
5. Making proper utilisation of local resources