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1 a) Define Marketing.

Distinguish product marketing and services marketing with


suitable examples.

A.PRODUCT MARKETING
Product marketing deals with the first of the "4P"'s of MARKETING , which are PRODUCT , PRICING , PLACE , and
PROMOTIONS.Product marketing, deals with more outbound MARKETING tasks. For example, product management deals
with the nuts and bolts of PRODUCT DEVELOPMENT within a firm, whereas product marketing deals with marketing the
PRODUCT to PROSPECTS CUSTOMERS , and others.
EXAMPLE : LUX TOILET SOAP.

Role of product marketing


Product marketing in a business addresses five important strategic questions:
What products will be offered (i.e., the breadth and depth of the PRODUCT LINE ?
Who will be the target customers (i.e., the boundaries of the market segments to be served)?
How will the products reach those (i.e., the distribution channel)?
How much should the products be priced at?
How to introduce the products (i.e., the way to promote the products)?

THE MOST APPROPRIATE / SELECT A COMBINATION FOR YOUR SITUATION


SAY, LUX TOILET SOAP.

-your product has a '' unique advantage/benefits.

-your product offers the most competitive ''value for money''.

-your product is one of the affordable in the market for its range.

-your product positioning in the niche market.

-your product distribution is matchless in the market, available at arms length.

-your product merchandising is the most attractive at the retail level.

etc etc.
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SERVICE MARKETING

SERVICE IS ANY ACT OR PERFORMANCE THAT ONE PARTY CAN OFFER TO ANOTHER THAT IS ESSENTIALLY
INTANGIBLE AND DOES NOT RESULT IN ANY OWNERSHIP
Services marketing is MARKETING based on relationship and value.
Marketing a service-base business is different from marketing a goods-base business.
There are several major differences, including:
The buyer purchases are intangible
The service may be based on the reputation of a single person
It's more difficult to compare the quality of similar services
The buyer cannot return the service
The major difference in the services marketing versus regular marketing is that instead of the traditional "4 P's," Product, Price,
Place, Promotion, there are three additional "P's" consisting of People, Physical evidence, and Process. Service marketing also
includes the servicescape referring to but not limited to the aesthetic appearance of the business from the outside, the inside,
and the general appearance of the employees themselves.

EXAMPLE: EDUCATION

Service quality is not one-dimensional; it encompasses numerous factors that are important to customer satisfaction.
Satisfaction basically is related to expectations and perceived delivery on these dimensions and as shown by the equation
given below.
The quality of service delivery results in customer satisfaction & their retention as it reinforces the perception that the value of
the service received is grater than the price paid for it.
Quality is defined as the ability of the service provider to satisfy customer needs. Customer perception , service quality &
profitability are interdependent variable.
Even in the case of products, quality is difficult to define because it is highly dependent upon customer perception. The task is
made more complicated in the case of service because of the intengible nature of service & the variation in services offered to
different customers.
There are several reasons why customers must be given quality service. Most important of them are

1. Industry has become so competitive that customers now have variety of alternatives. If the customers are lost, it can be
extremely difficult to win back the individual.

2. Most customers do not complain when they experience problems, these customers simply opt out & take their business
elsewhere.

What is CUSTOMER Satisfaction?


CUSTOMER Satisfaction = function of {CUSTOMER -Expectation and Perceived delivery}
A person is said to be dissatisfied when the perceived delivery is lower than expectation; he/she is satisfied when they match;
delighted when the delivery exceeds expectation and astonished when the delivery far exceeds expectation. The following
equations explain these relationships.
Perceived Delivery < Expectation --> Dissatisfaction
Perceived Delivery = Expectation --> Satisfaction
Perceived Delivery > Expectation --> Delight
Perceived Delivery >> Expectation --> Astonishment
Dimensions of Service Quality:
There are various aspects that a customer expects from different services.

1. Reliability: This refers to the ability of the company to perform the promised service dependably and accurately. Reliability is
probably the single most important dimension of quality. Customers expect that companies will do what they say and they will
do when they say they will do it.

2. Tangibles: This refers to the appearance of the physical facilities, equipment, personnel, and communication materials. As
services are intangible, the tangibles give an impression to the customers about the quality of service they can expect from a
firm. A bank in a shabby building will make the customer wonder whether their money will be safe in such a bank.

3. Responsiveness: This refers to the willingness of the employees to help customers and provide prompt service. When you
go to a bank the minimum that you expect is that the employees would attend to you rather than chit-chat amongst themselves.

4. Assurance: This factor is linked to several minor factors such as competence, courtesy, credibility and security. Competence
depends on the service provider's possession of the required skills and knowledge to perform the service. The politeness,
respect, consideration, and friendliness of the service providers can be bundled into the term courtesy. Credibility refers to the
perceived trustworthiness, believability, and honesty of the service provider. Security refers to the fact that the service should
be free from danger, risk, and doubt. In sum, the assurance factor refers to the knowledge and courtesy of employees and their
ability to inspire trust and confidence.

5. Empathy: Empathy refers to the caring, individualized attention the firm provides to its customers. It includes access,
communication and understanding. Access refers to the approachability and ease with which the customer can contact the firm.
Communication refers to keeping the customer informed in the language they can understand and listening to them.
Understanding has to do with the efforts made by the service provider to know customers and their needs.
The Service Quality Gaps:
Gaps between perceived & expected levels of service quality delivery result in the failure of the service provider.
These are the 5 gaps.
-The First gap does not know what customers expect. rea
-The second gap is between what the customer expects and what the management understands as the customers' expectation
from the company.
-The third gap is with reference to the management's understanding of the customer expectations and the service quality
standards set by the management.
-The fourth gap is between the quality specifications and actual service delivery.
-The fifth gap is between what is communicated to customers and what is actually delivered.
It is possible to measure the gaps and take corrective actions to fill them to the extent possible. The most difficult gap to fill is
the one between customer expectations and the perceived service delivery. The expectation of the customers keeps rising with
every good experience. When a customer visits the service organization, he/she expects a better service than what was
experienced in the last encounter.
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The service marketing challenges are
-to generate re-sales
-to create a waiting list
-to create a positive word of mouth advertising
as a lot of new business is generated from satisfied customers.
WHICH MEANS THAT THERE IS NO/LITTLE GAP BETWEEN
SERVICE EXPECTATIONS AND SERVICE DELIVERY.
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HOW DO YOU MATCH SERVICE EXPECTATION WITH DELIVERIES
IN PRODUCT MARKETING , WE RELY ON 4 P's
-product attributes/benefits
-pricing strategy
-place [ right / easy place to buy]
-promotions [ selected weighted mix]
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IN CASE OF THE SERVICE, THE PRODUCT IS
-intangible, the greater the intangibility the more complex
the promise.
-perishable /heterogeneous, the production and consumption are often simulaneous.
IN SERVICE MARKETING, WE RELY ON 7 P's
-product service [ features/benefits]
-place [ flexibility]
-price [ flexi]
-promotions [ selected weighted mix]
-people [ ability,competent, right attitude ]
-physical evidence
-process
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IN SERVICE BUSINESS,
-SERVICE MARKETING PROMOTES AND
SERVICE MANAGEMENT GENERATES RESULTS, through
*service delivery
*service quality
*customer satisfaction/ relation management
-service recovery
-service management audit.
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SERVICE MANAGEMENT PROVIDES SATISFACTORY SERVICE
-by designing the customer oriented business process
-cost effective service
-continuous improvements through research/development
-improving people's abilities/competences.
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SERVICE MARKETING MEETS SERVICE MANAGEMENT
-by managing customer behavior
-by conducting customer research
-by managing customer expectations
-by reverse-engineering the product/service portfolio.
-by determining what service the market needs/ we can offer.
-what do we need to do to fill the gap.
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THE INTEGRITY OF PRODUCT-SERVICE DELIVERY
when the service marketing is intergrated with service management
that is ,what you promise [either explicitly or implicitily] and
what you deliver
IN THIS CASE , ''INTEGRATED'' = ''INTEGRITY''
There is no gap
WHICH MEANS CUSTOMER SATISFACTION,
WHICH IT TURN MEANS = SUCCESSFUL SERVICE MARKETING.
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1.b) How would you reply to the small business person who says, “Marketing Research is too expensive, so the firm will just
have to get by without it’?

IN RELEVANCE TO THE TOTAL MARKETING COST,


THE MARKETING RESEARCH COST IS MINIMAL,
BUT OFFERS VALUABLE GUIDE TO THE SUCCESS
OF THE PRODUCT.

THE OBJECTIVE OF THE MARKETING RESEARCH IS


TO PROVIDE THE MARKETING MANAGEMENT, A RANGE
OF VITAL INFORMATION ON

Business Intelligence
Business Performance Management
Business rules
Data Mining
Predictive analytics
Purchase order request
Enterprise Architecture
Information technology management
Knowledge Base
Online analytical processing
ETC ETC
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The major EXPECTATIONS of MARKETING RESEARCH are to:
reach an understanding of the relevant processes on the basis of the available historic information. This element forms the
basis for the development of models, required for forecasting and simulation.
provide information on the current situation, especially for early warning purposes, for instance related to issues impacting on
business, resources or business status.
forecast changes and impacts, either natural or man-made, as an element in vulnerability assessments.
forecast the consequences of policy decisions and measures before they are implemented in reality. This implies evaluating
options for several given scenarios based on the possible results and predicted consequences, and selecting the most
acceptable alternative.
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FOR THE MARKETING MANAGEMENT,
THE MARKETING RESEARCH IS THE MAIN/MAJOR TOOL
-to feel the market sensitivity/ market reactions to the product/ price etc
which helps in the decision to provide the market the right product/ right price/right promotion/
and at the right place.

IN OTHER WORDS FROM THE MARKET


-researched information on various aspects of the product/market.
-to shape the future requirements of the product/market.
AND PUT THE PRODUCT BACK INTO THE MARKET.

THE MARKET RESEARCH PROVIDES


Ad Tracking – periodic or continuous in-market research to monitor a brand’s performance using measures such as brand
awareness, brand preference, and product usage.
Advertising Research – used to predict copy testing or track the efficacy of advertisements for any medium, measured by the
ad’s ability to get attention, communicate the message, build the brand’s image, and motivate the consumer to purchase the
product or service.
Brand equity research - how favorably do consumers view the brand?
Brand name testing - what do consumers feel about the names of the products?
Commercial eye tracking research - examine advertisements, package designs, websites, etc by analyzing visual behavior of
the consumer
Concept testing - to test the acceptance of a concept by target consumers
Coolhunting - to make observations and predictions in changes of new or existing cultural trends in areas such as fashion,
music, films, television, youth culture and lifestyle
consumer decision process research - to determine what motivates people to buy and what decision-making process they use
Copy testing – predicts in-market performance of an ad before it airs by analyzing audience levels of attention, brand linkage,
motivation, entertainment, and communication, as well as breaking down the ad’s flow of attention and flow of emotion.
· Customer satisfaction studies - exit interviews or surveys that determine a customer's level of satisfaction with the quality of
the transaction
Demand estimation - to determine the approximate level of demand for the product
Distribution channel audits - to assess distributors’ and retailers’ attitudes toward a product, brand, or company
· Internet strategic intelligence - searching for customer opinions in the Internet: chats, forums, web pages, blogs... where
people express freely about their experiences with products, becoming strong "opinion formers"
Marketing effectiveness and analytics - Building models and measuring results to determine the effectiveness of individual
marketing activities.
mystery shopping - An employee or representative of the market research firm anonymously contacts a salesperson and
indicates he or she is shopping for a product. The shopper then records the entire experience. This method is often used for
quality control or for researching competitors' products.
Positioning research - how does the target market see the brand relative to competitors? - what does the brand stand for?
Price elasticity testing - to determine how sensitive customers are to price changes
· Sales forecasting - to determine the expected level of sales given the level of demand. With respect to other factors like
Advertising expenditure, sales promotion etc.
Segmentation research - to determine the demographic, psychographic, and behavioural characteristics of potential buyers
Online panel - a group of individual who accepted to respond to marketing research online
· Store audit - to measure the sales of a product or product line at a statistically selected store sample in order to determine
market share, or to determine whether a retail store provides adequate service
Test marketing - a small-scale product launch used to determine the likely acceptance of the product when it is introduced into
a wider market
Viral Marketing Research - refers to marketing research designed to estimate the probability that specific communications will
be transmitted throughout an individuals Social Network. Estimates of Social Networking Potential (SNP) are combined with
estimates of selling effectiveness to estimate ROI on specific combinations of messages and media.
All of these forms of marketing research can be classified as either problem-identification research or as problem-solving
research.
A company collects primary research by gathering original data. Secondary research is conducted on data published previously
and usually by someone else. Secondary research costs far less than primary research, but seldom comes in a form that
exactly meets the needs of the researcher.
A similar distinction exists between exploratory research and conclusive research. Exploratory research provides insights into
and comprehension of an issue or situation. It should draw definitive conclusions only with extreme caution. Conclusive
research draws conclusions: the results of the study can be generalized to the whole population.
Exploratory research is conducted to explore a problem to get some basic idea about the solution at the preliminary stages of
research. It may serve as the input to conclusive research. Exploratory research information is collected by focus group
interviews, reviewing literature or books, discussing with experts, etc. This is unstructured and qualitative in nature. If a
secondary source of data is unable to serve the purpose, a convenience sample of small size can be collected. Conclusive
research is conducted to draw some conclusion about the problem. It is essentially, structured and quantitative research, and
the output of this research is the input to MARKETING INFORMATION SYSTEM.
Exploratory research is also conducted to simplify the findings of the conclusive or descriptive research, if the findings are very
hard to interpret for the marketing manager.
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FOR THE MARKETING DEPARTMENT
MR provides such informations as
-consumer research data
-market research data
-market surveys
-market analysis
-competitors analysis
-product analysis
-product test analysis
-product plans
-test market results
-market strategy analysis
-sales analysis
-distribution analysis
-media analysis
-promotion analysis
-customer satisfaction survey
-retail audit data
-marketing auditing data
-market forecast
-sales forecast
-sales planning data
-distribution planning
-customer analysis
-market segment analysis
-consumer [ socio/economic /demographic/psychographic] data
ETC ETC.
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WHICH THE MARKETING DEPARTMENT USE FOR
-new product development
-new product planning
-new product testing
-new product test marketing
-new product market forecast
-new product sales forecast
-annual market forecast
-annual sales forecast
-annual market planning
-annual sales planning
-annual distribution planning
-annual target marketing
-market segmentation
-annual sales development programs
-annual market development programs
-annual sales planning
-annual distribution planning
-annual merchandising planning
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2 a) What are the steps in the consumer decision making process? Do all consumers
decisions involve these steps.

CONSUMER Buying Behavior is the decision processes and acts of people involved in buying and using products.
Need to understand:
why consumers make the purchases that they make?
what factors influence consumer purchases?
the changing factors in our society.
Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm needs to analyze buying behavior
for:
Buyers reactions to a firms marketing strategy has a great impact on the firms success.
The marketing concept stresses that a firm should create a MARKETING MIX that satisfies (gives utility to) customers,
therefore need to analyze the what, where, when and how consumers buy.
Marketers can better predict how consumers will respond to marketing strategies.

CONSUMER BUYING BEHAVIOR

Stages of the Consumer Buying Process


Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual purchasing is only one stage of the
process. Not all decision processes lead to a purchase. All consumer decisions do not always include all 6 stages, determined
by the degree of complexity...discussed next.
The 6 stages are:
Problem Recognition(awareness of need)--difference between the desired state and the actual condition. Deficit in assortment
of products. Hunger--Food. Hunger stimulates your need to eat.
Can be stimulated by the marketer through product information--did not know you were deficient? I.E., see a commercial for a
new pair of shoes, stimulates your recognition that you need a new pair of shoes.
Information search--
Internal search, memory.
External search if you need more information. Friends and relatives (word of mouth). Marketer dominated sources; comparison
shopping; public sources etc.
A successful information search leaves a buyer with possible alternatives, the evoked set.
Hungry, want to go out and eat, evoked set is
chinese food
indian food
burger king
klondike kates etc
Evaluation of Alternatives--need to establish criteria for evaluation, features the buyer wants or does not want. Rank/weight
alternatives or resume search. May decide that you want to eat something spicy, indian gets highest rank etc.
If not satisfied with your choice then return to the search phase. Can you think of another restaurant? Look in the yellow pages
etc. Information from different sources may be treated differently. Marketers try to influence by "framing" alternatives.
Purchase decision--Choose buying alternative, includes product, package, store, method of purchase etc.
Purchase--May differ from decision, time lapse between 4 & 5, product availability.
Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. Cognitive Dissonance, have you made the right decision.
This can be reduced by warranties, after sales communication etc.
After eating an indian meal, may think that really you wanted a chinese meal instead.
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Types of Consumer Buying Behavior
Types of consumer buying behavior are determined by:
Level of Involvement in purchase decision. Importance and intensity of interest in a product in a particular situation.
Buyers level of involvement determines why he/she is motivated to seek information about a certain products and brands but
virtually ignores others.
High involvement purchases--Honda Motorbike, high priced goods, products visible to others, and the higher the risk the higher
the involvement.
Types of risk:
Personal risk
Social risk
Economic risk
The four type of consumer buying behavior are:
Routine Response/Programmed Behavior--buying low involvement frequently purchased low cost items; need very little search
and decision effort; purchased almost automatically. Examples include soft drinks, snack foods, milk etc.
Limited Decision Making--buying product occasionally. When you need to obtain information about unfamiliar brand in a familiar
product category, perhaps. Requires a moderate amount of time for information gathering. Examples include Clothes--know
product class but not the brand.
Extensive Decision Making/Complex high involvement, unfamiliar, expensive and/or infrequently bought products. High degree
of economic/performance/psychological risk. Examples include cars, homes, computers, education. Spend alot of time seeking
information and deciding.
Information from the companies MM; friends and relatives, store personnel etc. Go through all six stages of the buying process.

Impulse buying, no conscious planning.


The purchase of the same product does not always elicit the same Buying Behavior. Product can shift from one category to the
next.
For example:
Going out for dinner for one person may be extensive decision making (for someone that does not go out often at all), but
limited decision making for someone else. The reason for the dinner, whether it is an anniversary celebration, or a meal with a
couple of friends will also determine the extent of the decision making.
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Categories that Effect the Consumer Buying Decision Process
A consumer, making a purchase decision will be affected by the following three factors:
* PERSONAL
*PSYCHOLOGICAL
*SOCIAL
The marketer must be aware of these factors in order to develop an appropriate MARKETING MIX for its target market.

Personal
Unique to a particular person. Demographic Factors. Sex, Race, Age etc.
Who in the family is responsible for the decision making.
Young people purchase things for different reasons than older people.
Psychological factors
Psychological factors include:
Motives--
A motive is an internal energizing force that orients a person's activities toward satisfying a need or achieving a goal.
Actions are effected by a set of motives, not just one. If marketers can identify motives then they can better develop a
marketing mix.
MASLOW hierarchy of needs!!
Physiological
Safety
Love and Belonging
Esteem
Self Actualization
Need to determine what level of the hierarchy the consumers are at to determine what motivates their purchases.
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Perception--

What do you see?? Perception is the process of selecting, organizing and interpreting information inputs to produce meaning.
IE we chose what info we pay attention to, organize it and interpret it.
Information inputs are the sensations received through sight, taste, hearing, smell and touch.
Selective Exposure-select inputs to be exposed to our awareness. More likely if it is linked to an event, satisfies current needs,
intensity of input changes (sharp price drop).
Selective Distortion-Changing/twisting current received information, inconsistent with beliefs.
Advertisers that use comparative advertisements (pitching one product against another), have to be very careful that
consumers do not distort the facts and perceive that the advertisement was for the competitor. A current example...MCI and
AT&T...do you ever get confused?
Selective Retention-Remember inputs that support beliefs, forgets those that don't.
Average supermarket shopper is exposed to 17,000 products in a shopping visit lasting 30 minutes-60% of purchases are
unplanned. Exposed to 1,500 advertisement per day. Can't be expected to be aware of all these inputs, and certainly will not
retain many.
Interpreting information is based on what is already familiar, on knowledge that is stored in the memory.
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Ability and Knowledge--
Need to understand individuals capacity to learn. Learning, changes in a person's behavior caused by information and
experience. Therefore to change consumers' behavior about your product, need to give them new information re: product...free
sample etc.
South Africa...open bottle of wine and pour it!! Also educate american consumers about changes in SA. Need to sell a whole
new country.
When making buying decisions, buyers must process information.
Knowledge is the familiarity with the product and expertise.
Inexperience buyers often use prices as an indicator of quality more than those who have knowledge of a product.
Non-alcoholic Beer example: consumers chose the most expensive six-pack, because they assume that the greater price
indicates greater quality.
Learning is the process through which a relatively permanent change in behavior results from the consequences of past
behavior.
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Attitudes--

Knowledge and positive and negative feelings about an object or activity-maybe tangible or intangible, living or non-
living.....Drive perceptions
Individual learns attitudes through experience and interaction with other people.
Consumer attitudes toward a firm and its products greatly influence the success or failure of the firm's marketing strategy.
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Personality--

all the internal traits and behaviors that make a person unique, uniqueness arrives from a person's heredity and personal
experience. Examples include:
Workaholism
Compulsiveness
Self confidence
Friendliness
Adaptability
Ambitiousness
Dogmatism
Authoritarianism
Introversion
Extroversion
Aggressiveness
Competitiveness.
Traits effect the way people behave. Marketers try to match the store image to the perceived image of their customers.
There is a weak association between personality and Buying Behavior, this may be due to unreliable measures. Nike ads.
Consumers buy products that are consistent with their self concept.
Lifestyles--
Recent US trends in lifestyles are a shift towards personal independence and individualism and a preference for a healthy,
natural lifestyle.
Lifestyles are the consistent patterns people follow in their lives.
EXAMPLE healthy foods for a healthy lifestyle. Sun tan not considered fashionable in US until 1920's. Now an assault by the
American Academy of Dermatology.
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Social Factors
Consumer wants, learning, motives etc. are influenced by opinion leaders, person's family, reference groups, social class and
culture.
Opinion leaders--
SPOKESPEOPLE etc. Marketers try to attract opinion leaders...they actually use (pay) spokespeople to market their products.
Michael Jordon (Nike, McDonalds, Gatorade etc.)
Can be risky...Michael Jackson...OJ Simpson...Chevy Chase
Roles and Family Influences--
Role...things you should do based on the expectations of you from your position within a group.
People have many roles.
Husband, father, employer/ee. Individuals role are continuing to change therefore marketers must continue to update
information.
Family is the most basic group a person belongs to. Marketers must understand:
that many family decisions are made by the family unit
consumer behavior starts in the family unit
family roles and preferences are the model for children's future family (can reject/alter/etc)
family buying decisions are a mixture of family interactions and individual decision making
family acts an interpreter of social and cultural values for the individual.
The Family life cycle: families go through stages, each stage creates different consumer demands:
bachelor stage...most of BUAD301
newly married, young, no children...me
full nest I, youngest child under 6
full nest II, youngest child 6 or over
full nest III, older married couples with dependant children
empty nest I, older married couples with no children living with them, head in labor force
empty nest II, older married couples, no children living at home, head retired
solitary survivor, in labor force
solitary survivor, retired
Modernized life cycle includes divorced and no children.
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Reference Groups--
Individual identifies with the group to the extent that he takes on many of the values, attitudes or behaviors of the group
members.
Families, friends, sororities, civic and professional organizations.
Any group that has a positive or negative influence on a persons attitude and behavior.
Membership groups (belong to)
Affinity marketing is focused on the desires of consumers that belong to reference groups. Marketers get the groups to approve
the product and communicate that approval to its members. Credit Cards etc.!!
Aspiration groups (want to belong to)
Disassociate groups (do not want to belong to)
Honda, tries to disassociate from the "biker" group.
The degree to which a reference group will affect a purchase decision depends on an individuals susceptibility to reference
group influence and the strength of his/her involvement with the group.
Social Class--
an open group of individuals who have similar social rank. US is not a classless society. US criteria; occupation, education,
income, wealth, race, ethnic groups and possessions.
Social class influences many aspects of our lives. IE upper middle class Americans prefer luxury cars Mercedes.
Upper Americans-upper-upper class, .3%, inherited wealth,
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2b) Discuss the role of personal selling and advertising in promoting industrial
products. How does it compare to consumer product promotion.

ROLE OF Personal Selling IN INDUSTRIAL PRODUCTS.


-here the marketing communication is used
*to inform the customers/ prospects
*to create awareness
*to present the product
*to influence the customer
*to sell benefits
*to help the customer to make the buying decision
*to seek commitment
*to help to close the sale.
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================================
ROLE OF Advertising (above and below the line)
OF THE INDUSTRIAL PRODUCTS.

-here the marketing communication is used


ABOVE THE LINE
*to MASS inform the customers/ prospects
*to create MASS awareness
*to present the product
*to influence the customer
*to sell benefits
*to help the customer to make the buying decision

BELOW THE LINE


*to physically present
*to make it visible at the point of sale.
*to influence the customers
*to help the customers to feel the product
*to help the customer to make the buying decision
*to offer consumer incentives
*to help the final transactions
*to display and promote
*to merchandise the product
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ON THE RETAIL FLOOR ----INDUSTRIAL PRODUCTS
ROLE OF Sales Promotion
-here the marketing communication is used
*to inform the customers
*to physically present
*to influence the customers
*to help the customers to feel the product
*to help the customer to make the buying decision
*to offer consumer incentives
*to help the final transactions
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ROLE OF Direct Mail ---INDUSTRIAL PRODUCTS
-here the marketing communication is used
*to inform
*to talk to individuals
*to focus on niche market
*to inform the decision makers directly
*to advertise cost efficiently
*to promote selected market segments
*to contact individuals for one-to-one marketing
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How does it compare to consumer product promotion.

1.CONSUMER PRODUCTS
-appeals to the consumer emotions.
-appeals to the consumer desires.
-influences the buying decisions
with benefits feelings.

2.INDUSTRIAL PRODUCTS
-appeals to the consumer benefits.
-appeals to the consumer ownership.
-influences the buying decisions
with the usage values.

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3 a) Why do many firms use a family brand? What are the risks associated with this
strategy if a new product is sub-standard?

Family branding is a MARKETING strategy that involves selling several related PRODUCTS under one BRAND NAME. It is
contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name.
There are often economies of scope associated with family branding since several products can efficiently be promoted with a
single advertisement or campaign. Family branding facilitates NEW PRODUCT INTRODUCTIONS by providing a 'foot-in-the-
door' in potential customers' evoked set. When considering purchasing a new type of product, potential customers will tend to
evoke in their minds a product with a familiar brand name. Being a part of this evoked set could lead to trial purchase, product
acceptance, or other advantages.

-1) Brand image of parent brand act as Differentiating factor for product in extremely competitive market.
-2) Extra cost of Brand creation is not required.
-3) Umbrella branding help to create dependent perception about product as parent Brand.
-4) Brands get abound in business.
-5) Umbrella branding helps to give positioning to product.
-6) Advertising and promotional efforts should be combined for all the products falling under family brand.
-7) New product launch become easier and cheaper.
- 8) New product find ready recognition and market set up.

Family branding imposes on the brand owner a greater burden


-to maintain consistent quality and BRAND EQUITY .
-If the quality of one product in the brand family is compromised, it could reduce sales of all the others.
Family branding should only be done when a PRODUCT LINE consists of products of similar quality.
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3b) Consider the following statement and discuss: “The only thing that channel
intermediaries do is to increase price for the consumer.”
1.CHANNELS OFFER VARIOUS SUPPORT/ SERVICES
IN MARKETING OF YOUR PRODUCTS.

2. CHANNELS ACT AS YOUR AGENT IN WORKING


AGAINST YOUR COMPETITION.

3.CHANNEL OFFER SERVICES/ SUPPORT AS DEMANDED


BY CUSTOMERS FOR YOUR PRODCUT.

4.CHANNEL OFFER LOGISTICAL SUPPORT


TO YOUR PRODUCT MARKETING.

5.CHANNEL IS YOUR EXTENDED ARM OF YOUR


SUPPLY CHAIN.

6.CHANNEL HOLDS STOCKS IN THE FIELD FOR


YOUR PRODUCTS.

7.CHANNEL HOLDS STOCKS FOR YOUR PRODUCTS


IN VARIOUS LOCATIONS.

8.CHANNEL GIVES TRADE TERMS TO RETAILERS,


WHICH HELPS THE RETAILING OF YOUR PRODUCTS.

9.CHANNEL GIVES CREDIT TERMS TO CUSTOMERS.

10.CHANNEL HAS IT'S OWN SALES PROMOTIONS FOR


YOUR PRODUCTS.

11.CHANNEL CONDUCT TRADE PROMOTIONS FOR


YOUR PRODUCTS.

12. CHANNELS MANAGE THE PHYSICAL/DISTRIBUTION FACILITIES


FOR YOUR PRODUCTS.

13.CHANNELS SUPPORT YOUR CUSTOMER COVERAGE.

14.CHANNELS SUPPORT YOUR MARKET COVERAGE.

15.CHANNELS PROVIDE VITAL MARKET RESEARCH INFORMATION.

16.CHANNELS SUPPORTS THE CRITICAL BUYING


NEEDS OF YOUR CUSTOMERS.

17.CHANNELS PROVIDE SUPPORT A NETWORK OF


AFTER MARKET SERVICE SUPPORT FOR YOUR
PRODUCT.

18. CHANNEL PROVIDES SUPPORT FOR YOUR


MARKET PLANNING/ SALES PLANNING PROGRAMS.

19.CHANNEL PROVIDES SUPPORT TO YOUR PROFIT MAKING.

20.CHANNELS ARE YOUR PARTNERS IN BUSINESS.


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4 a) Discuss the stages in New Product Development process giving suitable examples

NEW PRODUCT DEVELOPMENT


THE NEW PRODUCT DEVELOPMENT GOES THROUGH
VARIOUS STAGES AND AT EACH STAGE A RANGE
OF QUESTIONS ARE RAISED AND THE DIFFERENCES
ARE SETTLED.
THIS IS THE PROCESS AS SHOWN BELOW.

1.EXPLORATION STAGE.
*Statement of company objective.
*Statement of product idea.
*Judgment evaluation of merit.
*Profile of products known on the market.
[CEO / MARKETING DIRECTOR / MANUFACTURING [R&D] MAKE THE FINAL DECISION]
----------------------------------------------------------------------
*Survey of product ingredients, design standards,
general technology of the field.
*Analysis of competitive product claims.
[MARKETING / MANUFACTURING [R&D ]DECIDE THE FINAL DECISION]
-----------------------------------------------------------------
*Analysis of competitive advertising expenditures.
*Areas of brand share/volume history.
[MARKETING / PRODUCT MANAGERS DECIDE THE FINAL DECISION]
---------------------------------------------------------------------
*Survey of traditional channels of distribution and
other distribution opportunities.
*Survey of general selling practices, promotional
allowance buying standards.
*Survey of specific federal and state legal problems
in reference to ingredients, sales practices, controls.
[MARKETING / SALES / DISTRIBUTION DECIDE THE FINAL DECISION]
-----------------------------------------------------------------
*Survey to determine marketing opportunity area.
*Cyclical, seasonal, and long term marketing considerations.
*Product class profile study.
*Survey of potential customer interest in new product.
[MARKETING / PRODUCT MANAGEMENT DECIDE THE FINAL DECISION ]
---------------------------------------------------------------------
*Definition of the selected market.
*Preliminary opportunity estimate.
[MARKETING / SALES DECIDE THE FINAL DECISION.
=================================================================
2. SCREENING STAGE

*Estimation of period of product exclusivity.


*Research of customer satisfaction and use habits
of current products.
[MARKETING / PRODUCT MANAGEMENT DECIDE THE FINAL DECISION]
-------------------------------------------------------------
*Product concept screening.
*Analysis of sizes, types required.
*Investigation of additional sales outlets government, export, institutional, premiums.
*Report of finding and indicated opportunities.

[MARKETING / SALES DECIDE THE FINAL DECISION.


-----------------------------------------------------------------
=================================================================
3. PROPOSAL STAGE

*Request for Planned Development Programme, with estimated investment and timetable.
*Approval of research and development budget.

[CEO / MARKETING / MANUFACTURING [ R&D] MAKE THE FINAL DECISION.

-------------------------------------------------
*Initial design/formulation of product.

[ MARKETING / MANUFACTURING [ R&D] MAKE THE FINAL DECISION.


--------------------------------------------------
*Copyrights or patents. Preparation of product platform. *Securement of required government clearances.

[MARKETING / LEGAL DEPARTMENTS MAKE THE FINAL DECISION]

------------------------------------------
*Initial costing based on optimum manufacturing levels. *Determination of local tax, licensing, and other financial
considerations.
*Performance and efficiency tests.
*Independent laboratory/engineering analysis of prototypes.

[MANUFACTURING [ R&D] / PRODUCT MANAGEMENT MAKE THE FINAL DECISION]

---------------------------------------------------------
*Preparation of copy platform.
*Panel evaluation of prototype product.
*Forecast of volume potential.
*Customer testing/opinion

[MARKETING / SALES / MANUFACTURING MAKE THE FINAL DECISION ]

------------------------------------------------------------
*Determination of plant capacity and facilities availability.

[CEO/FINANCE/MARKETING/MANUFACTURING MAKE THE FINAL DECISION]

------------------------------------------------------------------
=============================================================
4. DEVELOPMENT STAGE

*Research of prototype product.

[MARKETING/ MANUFACTURING MAKE THE FINAL DECISION]

------------------------------------------------
*Plant location and transportation considerations.
*Basis of appropriation.

[MANUFACTURING / FINANCE MAKE THE FINAL DECISION.

-------------------------------------------
*Development of media plan.
*Decision on manufacturer association-identification on/with product.
*Creation of brand name possibilities.
*Legal search of brand name possibilities.
*Registration of trademark, copyright brand name.
*Development of basic customer selling theme.
*Approval of package design (and inserts).
*Preparation of instructions/directions to conform.
*Adoption of media philosophy, based on selling theme, budgetary consideration, coverage of prospects, and availability.

[MARKETING / SALES MAKE THE FINAL DECISION.

---------------------------------------------------------
*Determination of labour availability.
*Study of labour or union regulations.
*Determination of raw material commitments and availability.
*Determination of special tooling and equipment.

[MANUFACTURING/ FINANCE MAKE THE FINAL DECISION]

-----------------------------------------------
5. SALES TESTING STAGE

*Prediction of competitive reaction to new product.


*Setting of test area sales goals - share,
penetration, unit and dollar volume.
*Determination of introductory test area timing.
*Determination of service and repair problems and facilities.
*Sales representative recruitment. Sales training.
[MARKETING / SALES MAKE THE FINAL DECISION ]

----------------------------------------------
*Manufacturing pilot run. Approval of test area production.
*Shipping, storage, and packing tests.
*Plan to meet competitive reaction.
*Finalisation of test areas.

[MARKETING/ SALES / MANUFACTURING MAKE THE FINAL DECISION]

------------------------------------------------
*Forecast of P/L limits of successful venture and of unsuccessful write-off.
*Test area simulation of national campaign concept.
*Determination of test area total appropriation.

[MARKETING / FINANCE MAKE THE FINAL DECISION]

----------------------------------------------------
*Preparation of media merchandising. Preparation of trade selling sheets.
*Determination of educational plan and appropriation. *Preparation of customer educational materials.
*Determination of publicity plan and appropriation.
*Preparation of introductory publicity materials.
*Determination of sales promotion plan and appropriation. *Approval of test area commercial plan and insertion schedule.
*Setting of sales quotas.
*Establishment of sales force incentives, bonuses, premiums. *Establishment of trade incentives - buying allowances, contests.

*Commission of product printed material.


*Trade sales kick-off.
*Advertising kick-off.
*Survey of trade performance in test area.
*Research on test area users.
*Analysis of factory sales data from test area.
*Programme performance reports in test area - adjust to meet standards.
*Test area evaluation.
*Definition of special line management attention or policy changes required in large scale marketing.
*Recommendation for major expansion.

[MARKETING / SALES MAKE THE FINAL DECISION]


=================================================================
6. FINAL MARKETING STAGE

* Turn over to appropriate product manager.


4b) What is cyber marketing and how is it different from conventional marketing?
Discuss the limitations of cyber marketing

Cyber marketing

Cyber marketing has now become an indispensable segment of e-commerce


as well as the internet and World Wide Web related topics. Cyber marketing simply refers to a technique of attracting potential
customers by advertising your products or services through such means as websites, emails, and banners.

In other words, cyber marketing is a blend of internet technology and direct marketing principles that is adopted by business
owners to find profitable customers and to interact with them in order to enhance their business activities, thereby ensuring
improved ROI (Return on Investment.) A number of activities are involved in cyber marketing such as online marketing, fax
direct marketing, canvassing, call center direct marketing, and mobile phone marketing via SMS (Short Message Service.)
Benefits derived from the adoption of cyber marketing techniques are immense. First of all, it enables to minimize business
costs and helps you to reach a substantial number of customers and that too within minimal time frame. Another great benefit
of cyber marketing is that it allows you to cost-effectively reach in any type market, let it be regional, national, and international.
Also, a significant benefit of cyber marketing is that it enables you to win profitable customers. Exceptionally low marketing
costs, high profit margin, increased customer loyalty, round the clock services, and expansion in customer base are the other
obvious benefits of cyber marketing.
However, it is not as easy you think to enhance your business profitability via cyber marketing techniques. In other words, in
order to employ this marketing technique, it is important that business owners and other people engaged in the internet field
such as ecommerce and marketing professionals must possess adequate skills.
Cyber marketing includes
- E-Business technology
- E-Business Communication
- E-Business Distribution Systems
- E-Business Value Strategies
- E-Business Strategy
- E-Business Management
- Individual as well as the diffusion of innovations
- How to gather and use information
- The Political, Legal, and Ethical Environment

knowledge of cyber marketing helps such areas as:


- Strategies as well as tactics involved in online marketing
- Role of E-business in restructuring the traditional distribution systems
- Way of designing advertising campaign and advertising banner
- How to employ email marketing, blog advertising, viral marketing, and Google advertising
- What is search engine optimization (SEO) and how to increase web visitor count through SEO?
- How to develop contents that should be included in a website
- Web analysis
- Aspects covering ethical, legal, and political sides of cyber marketing
- Cyber marketing tools

WHICH HELPS TO UNDERSTAND


- How to gain the attention of audience through an effective website
- How to use gathered information to discover new knowledge
- How to enhance the value of your business using management systems
- How to organize E-Business strategies to compete with your rivals
- How to employ different data to gain competitive benefits

CYBER MARKETING IS DIFFERENT FROM CONVENTIONAL


MARKETING.
-but it is part of your total integrated marketing programs.
-IT IS A SUPPLEMENT TO YOUR TOTAL MARKETING PLAN.

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