1.

What is the difference between a marketing mix and a promotional

mix?
Ans - The marketing mix is a planned mix of activities.
The ingredients in the marketing mix are the seven P's product, place,
price,promotion,packaging,positioning,people.
The promotional mix is the coordination of marketing communication
activities which includes publicity, sales promotion, advertising, direct
marketing and personal selling.
2. Does logistics management and supply chain management mean the
same thing?
Ans - Logistics is that part of the supply chain process that plans,
implements, and controls the efficient, effective flow and storage of
goods, services, and related information from the point-of-origin to
the point of- consumption in order to meet customers' requirements.
Supply chain management is the integration of key business processes
from end user through original suppliers that provide products,
services, and information that add value for customers and other
stakeholders.
3. BCG Matrix?
Ans - BCG matrix (or growth-share matrix) is a corporate planning
tool, which is used to portray firms brand portfolio or SBUs on a
quadrant along relative market share axis (horizontal axis) and speed
of market growth (vertical axis) axis.
BCG matrix is a framework created by Boston Consulting Group to
evaluate the strategic position of the business brand portfolio and its
potential. It classifies business portfolio into four categories based on
industry attractiveness (growth rate of that industry) and competitive
position (relative market share).

There are four quadrants into which firms brands are classified:
Dogs. Dogs hold low market share compared to competitors and operate
in a slowly growing market. In general, they are not worth investing in
because they generate low or negative cash returns. But this is not always
the truth. Some dogs may be profitable for long period of time, they may
provide synergies for other brands or SBUs or simple act as a defense to
counter competitors moves. Therefore, it is always important to perform
deeper analysis of each brand or SBU to make sure they are not worth
investing in or have to be divested.
Strategic choices: Retrenchment, divestiture, liquidation
Cash cows. Cash cows are the most profitable brands and should be
milked to provide as much cash as possible. The cash gained from
cows should be invested into stars to support their further growth.
According to growth-share matrix, corporate should not invest into cash
cows to induce growth but only to support them so they can maintain
their current market share. Again, this is not always the truth. Cash cows
are usually large corporations or SBUs that are capable of innovating new
products or processes, which may become new stars. If there would be no
support for cash cows, they would not be capable of such innovations.
Strategic choices: Product development, diversification, divestiture,
retrenchment
Stars. Stars operate in high growth industries and maintain high market
share. Stars are both cash generators and cash users. They are the
primary units in which the company should invest its money, because
stars are expected to become cash cows and generate positive cash
flows. Yet, not all stars become cash flows. This is especially true in
rapidly changing industries, where new innovative products can soon be
outcompeted by new technological advancements, so a star instead of
becoming a cash cow, becomes a dog.
Strategic choices: Vertical integration, horizontal integration, market
penetration, market development, product development
Question marks. Question marks are the brands that require much closer
consideration. They hold low market share in fast growing markets
consuming large amount of cash and incurring losses. It has potential to
gain market share and become a star, which would later become cash
cow. Question marks do not always succeed and even after large amount
of investments they struggle to gain market share and eventually become
dogs.
Strategic choices: Market penetration, market development, product
development, divestiture
4. Ansoff matrix?
Ans - The Ansoff Growth matrix is another marketing planning tool that
helps a business determine its product and market growth strategy.
Ansoffs product/market growth matrix suggests that a business
attempts to grow depend on whether it markets new or existing products
in new or existing markets. The output from the Ansoff product/market
matrix is a series of suggested growth strategies which set the direction
for the business strategy. These are described below:

5. Porters five forces model?
Ans - Five forces model was created by M. Porter in 1979 to understand
how five key competitive forces are affecting an industry. Porters five
forces model is an analysis tool that uses five forces to determine the
profitability of an industry and shape a firms competitive strategy. It is a
framework that classifies and analyzes the most important forces
affecting the intensity of competition in an industry and its profitability
level.

6. Product Life Cycle?
Ans - The product life cycle is an important concept in marketing. It
describes the stages a product goes through from when it was first
thought of until it finally is removed from the market. Not all products
reach this final stage. Some continue to grow and others rise and fall.


The main stages of the product life cycle are:
Introduction researching, developing and then launching the
product
Growth when sales are increasing at their fastest rate
Maturity sales are near their highest, but the rate of growth is
slowing down, e.g. new competitors in market or saturation
Decline final stage of the cycle, when sales begin to fall
This can be illustrated by looking at the sales during the time period of
the product.

A branded good can enjoy continuous growth, such as Microsoft, because
the product is being constantly improved and advertised, and maintains a
strong brand loyalty.
7. What is difference between Marketing and sales?
Ans - Marketing is everything that you do to reach and persuade
prospects and the sales process is everything that you do to close the
sale and get a signed agreement or contract. Both are necessities to
the success of a business. You cannot do without either process. If you
work to strategically combine both efforts you will experience a
successful amount of business growth. However, by the same token if
the efforts are unbalanced or departments don't communicate it can
detour business growth.

Sales = Sell Whats in Stock
The job of Sales is to sell whats in stock. The company has specific
products or services and the job of Sales is to sell those things. Sales
develop relationships with customers and/or channel partners. They
knock down the doors, overcome objections, negotiate prices and terms
and often work internally to be sure their customers orders are filled.
The perspective of Sales is from inside the company out toward the
customers and their horizon is focused on this week, this month and this
quarter. If sales is not focused on the now, then there may not be any
revenue this week, month or quarter.
Marketing = Align with Customers, Now and for the Future
A key job of Marketing is to understand the marketplace from the
perspective of the customer looking back towards the company and
helping lead the company where it should be in the future. Marketings
job is to direct the organization toward the segments, or groups of
customers and channels the company can profitably compete. It should
help the organization see how it needs to modify its product offerings,
pricing and communication so that it meets the needs of the distribution
channel or end customers. Marketing also needs to convert the market
understanding into tools and tactics to attract the market, build (often
digital) relationships, and develop leads. They may also direct Sales as to
where they should be hunting and what ammo to use. Note, however,
that if Marketing becomes a sales support function focused only on the
now, the future can become lost.
8. Marketing Mix(4Ps)?
Ans - The mix of controllable marketing variables that the firm uses to
pursue the desired level of sales in the target market. The most
common classification of these factors is the four-factor classification
called the "Four Ps"-price, product, promotion, and place (or
distribution). Optimization of the marketing mix is achieved by
assigning the amount of the marketing budget to be spent on each
element of the marketing mix so as to maximize the total contribution
to the firm. Contribution may be measured in terms of sales or profits
or in terms of any other organizational goals.
marketing mix models
The determination of an optimal marketing mix is often aided by
models that take into account the market response to the various
marketing mix elements and their interactions. These models include
econometric market response models to the marketing mix variables of
the firm (and its competitors) as well as specialized models such as
Advisor and BRANDAID, micro simulation models, various
optimization models, and customized applications of the analytic
hierarchy process and other resource allocation models.
9. Marketing Metric Audit Protocol (MMAP)?
Ans - The marketing metric audit protocol?(MMAP) is the Marketing
Accountability Standards Board (MASB)'s formal process for connecting
marketing activities to the financial performance of the firm. The
process includes the conceptual linking of marketing activities to
intermediate marketing outcome metrics to cash flow drivers of the
business, as well as the validation and causality characteristics of an
ideal metric. Cash flow both short-term and over time is the ultimate
metric to which all activities of a business enterprise, including
marketing, should be causally linked through the validation of
intermediate marketing measures. The process of validating the
intermediate outcome measures against short-term and/or long-term
cash flow drivers is necessary to facilitate forecasting and
improvement in return.
10. Marketing Accountability Standards Board (MASB)?
Ans - Marketing Accountability Standards Board (MASB) is an
independent, private sector, self-governing group of academics and
practitioners whose purpose is to establish marketing measurement
and accountability standards. The standards are intended for
continuous improvement in financial performance, and for the
guidance and education of users of performance and financial
information.
11. Marketing information system (MkIS)?
Ans - A set of procedures and methods for the regular, planned
collection, analysis, and presentation of information for use in making
marketing decisions.
12. Marketing intelligence system?
Ans - The development of a system to gather, process, assess, and
make available marketing data and information in a format that
permits marketing managers and executives to function more
effectively. Marketing data, when analyzed, may yield information
that can then be processed and put into a format that gives
intelligence for planning, policy making, and decision purposes.
13. Marketing channel?
Ans - A set of institutions necessary to transfer the title to goods and
to move goods from the point of production to the point of
consumption and, as such, which consists of all the institutions and all
the marketing activities in the marketing process.
14. Marketing communications?
Ans - Marketing Communications (MarCom) are coordinated
promotional messages and related media used to communicate with a
market. Marketing communications messages are delivered through
one or more channels such as print, radio, television, direct mail, and
personal selling.
15. Marketing research?
Ans - Marketing research is the systematic gathering, recording, and
analysis of data about issues relating to marketing products and
services.
16. Market research?
Ans - The systematic gathering, recording, and analyzing of data with
respect to a particular market, where market refers to a specific
customer group in a specific geographic area.
17. Market Targeting?
Ans - An organizations proactive selection of a suitable market
segment (or segments) with the intention of heavily focusing the firms
marketing offers and activities towards this group of related consumers.
18 Market test?
Ans - A controlled experiment, done in a limited but carefully selected
sector of the marketplace, whose aim is to predict the sales or profit
consequences, either in absolute or relative terms, of one or more
proposed marketing actions.
19 Market testing?
Ans - The phase of new product development in which the new item
and its marketing plan are tested together. Prior testing, if any,
involved separate components. A market test simulates the eventual
marketing of the product and takes many different forms, only one of
which bears the name test market.
20 Test marketing?
Ans - One form of market testing. It usually involves actually
marketing a new product in one or several cities. The effort is totally
representative of what the firm intends to do later upon national
marketing (or regional market rollout). Various aspects of the
marketing plan may be tested (e. g., advertising expenditure levels
or, less often, product form variants), by using several pairs of cities.
Output is a mix of learning, especially a sales and profit forecast. In
some areas, test marketing is currently being stretched to include
scanner market testing, in which the marketing activity is less than
total, but the term is best confined to the full-scale activity.
21. Test market?
Ans - The trading area selected to test a company's new or modified
product, service, or promotion.
22. Tertiary trade zone?
Ans - The outermost ring of a trade area. It includes customers who
only occasionally shop at a store or shopping center. It is also known
as fringe trade area.


23. Pay Per?
Ans - Pay Per Call
A model of paid advertising similar to Pay Per Click (PPC), except
advertisers pay for every phone call that comes to them from a search
ad, rather than for every click-through to their web site landing page for
the ad. Often higher cost than PPC advertising; but valued by advertisers
for higher conversion rates from consumers who take the action step of
telephoning an advertiser.
pay per click search engine (PPCSE)
A search engine where results are ranked according to the bid amount
and advertisers are charged only when a searcher
pay per sale (PPS)
An online advertising payment model in which payment is based solely
based on qualifying sales.
pay- per-lead (PPL)
An online advertising payment model in which payment is based solely
based on qualifying leads.
Pay-per-Impression
An advertising pricing model in which advertisers pay agencies based on
how many consumers see their promotions.
24. Pricing?
Ans
penetration price policy
A pricing policy that sets a low initial price in an attempt to increase
market share rapidly. This policy is effective if demand is perceived to be
fairly elastic.
perceived-value pricing
A method of pricing in which the seller attempts to set price at the level
that the intended buyers value the product. It is also called value-in-use
pricing or value-oriented pricing.
parallel pricing
The practice of following the pricing practices of other organizations,
particularly competitors.
predatory pricing
The practice of selectively pricing a product below that of competition so
as to eliminate competition, while pricing the product higher in markets
where competition does not exist or is relatively weaker.
preemptive pricing
The practice of setting prices low so as to discourage competition from
entering the market.
Premarking/Prepricing
The price marking by the manufacturer or other supplier before goods are
shipped to a retail store. It is also called prepricing.
proactive pricing
The managerial practice of deliberately analyzing the factors that
influence prices before setting prices. Normally, a proactive pricer
establishes specific objectives to be accomplished by the prices and then
proceeds in the development of specific prices.
product-line pricing
The establishing of prices for all items in a product line.
psychological pricing
A method of setting prices intended to have special appeal to consumers.
odd-even pricing
A form of psychological pricing that suggests buyers are more sensitive to
certain ending digits. Odd price refers to a price ending in an odd number
(e.g., 1,3,5,7,9), or to a price just under a round number (e.g., $0.89,
$3.99, $44.98). Even price refers to a price ending in a whole number or
in tenths (e.g., $0.50, $5.00, $8.10, $75.00).
full-line pricing
In this situation, all items in a given line are priced relative to each
other, or are discounted as a total package. Changes on any one item
take into consideration the prices of the other items in the line, and the
seller's intention is to enhance sale of the total line.
markup
1. (pricing definition) The amount of increase in price over total unit
costs.
MSRP
Manufacturers Suggested Retail Price - a pricing concept often used in car
sales that establishes a high retail starting point for price negotiations.
multiple basing-point pricing system
In a multiple basing-point pricing system, several locations are designated
as basing points. The choice of a basing point is the point that yields the
lowest delivered cost to the buyer.
multiple-unit pricing
The practice of pricing several items as a single unit.
multiple-zone pricing system
In a multiple-zone pricing system, delivered prices are uniform within two
or more zones.
markdown
The amount of a reduction from the selling price.
price bundling
The practice of offering two or more products or services for sale at one
price.
price code
A symbol or code placed on a price ticket or bin ticket to indicate the
cost price of an item.
basing-point pricing
A variation of delivered pricing. The delivered price is the product's list
price plus transportation from a basing point to the buyer. The basing
point is a city where the product is produced. But, in basing-point
pricing, the product may be shipped from a city other than the basing
point.
single-zone pricing
The practice of setting one price for all buyers regardless of their
distance from the seller.
Skimming Pricing
The organisation sets an initial high price and then slowly lowers the
price to make the product available to a wider market. The objective is
to skim profits of the market layer by layer.
Competition Pricing
Setting a price in comparison with competitors. Really a firm has three
options and these are to price lower, price the same or price higher.
Premium Pricing
The price set is high to reflect the exclusiveness of the product.
Optional Pricing
The organization sells optional extras along with the product to maximise
its turnover.
Cost Based Pricing
The firms takes into account the cost of production and distribution, they
then decide on a markup which they would like for profit to come to their
final pricing decision.
Cost Plus Pricing
Here the firm add a percentage to costs as profit margin to come to their
final pricing decisions.
25. GEs 9 cell Matrix?
Ans - GE Matrix also called McKinsey Matrix is a strategic management
tool for conducting portfolio analysis. The portfolio which is analyzed
with the matrix may include products, services or entire SBUs (strategic
business units) owned by the company. This tool is very similar to the
BCG Matrix and you can actually view the GE or McKinsey Matrix is a kind
of extension of the BCG Matrix (the multifactor portfolio analysis tool).