Question 1- Differentiate between Consumer market and business market.

ANSWER: The success of your marketing strategy involves gaining a comprehensive understanding of the particular markets that you serve. These markets can either be consumer markets or business markets. A simple method of identifying the difference between these two markets is to address the following questions: Who is buying the goods? Why is the purchase being made?

Business markets involve sales and purchases of goods and services to various businesses, governments and market intermediaries to facilitate the finished product which is generally then re-sold to an end user. In contrast, consumer markets involve the purchase and sale of goods and services to consumers for their own use rather than for resale. As there is a significant difference between these two markets, the marketing strategies adopted to serve them also differ. These strategies need to be developed based on the needs, wants and buying processes of the particular market. Buying decisions for consumer markets can be complex for large purchases such as cars, houses and holidays, where multiple family members such as husbands and wives, even children will be involved to make a collective decision. However for smaller day to day products and services there is usually a much more simple buying process where one person will be the decision maker and there will be generally a low level relationship between the buyer and the seller, as in the case of a supermarket purchase. In business markets however, the buying process may involve a high amount of decision making and will often have more than one individual involved in the buying process. For example, there may be an engineer or technical person involved in the specification of the product or service and a purchasing manager in charge of price negotiations. Sometimes in large buying decisions there can even be a team of people from different departments making the purchase decision collectively.

There are many difference between business markets and consumer markets.Some of the differences are-

Difference between business markets and consumer markets due To The Nature Of Purchases Organizational consumers purchase capital equipment, raw materials, semi-finished goods, and other products for use in further production or operations or for resale to others, whereas final consumers usually acquire the finished items for personal, family, or household use. Organizational consumers are likely to require exact product specifications. Final consumers more often buy on the basis of description, style, and color. Organizational consumers often use multiple-buying responsibility, in which two or more employees formally participate in complex or expensive purchase decisions. Final consumers employ it less frequently and less formally. Difference between business markets and consumer markets on the basis of demand Derived demand occurs for organizational consumers because the quantity of items they purchase is often based on the anticipated demand of their final consumers for specific finished goods and services; therefore, organizational consumers are less sensitive to price changes. As long as final consumers are willing to pay higher prices, organizational consumers will not object to price increases. Demand is volatile due to the accelerator principle, whereby final consumer demand affects many levels of organizational consumers. There are fewer organizational consumers than final consumers. Business market consumers tend to be geographically concentrated. Buying specialists are often used. Distribution channels are shorter. Differences of business markets and consumer markets based On A Global Perspective As with final consumers, there are many distinctions among organizational consumers around the world and sellers must understand and respond to them. Companies doing business in foreign markets must know how to deal with organizational consumers in those markets. Nations cultures have a large impact on the way their organizational consumers negotiate and reach decisions.

Question 2 What is branding? Discuss the components of Brand Equity.

ANSWER: To understand branding, it is important to know what brands are. A brand is the idea or image of a specific product or service that consumers connect with, by identifying the name, logo, slogan, or design of the company who owns the idea or image. Branding is when that idea or image is marketed so that it is recognizable by more and more people, and identified with a certain service or product when there are many other companies offering the same service or product.

Advertising professionals work on branding not only to build brand recognition, but also to build good reputations and a set of standards to which the company should strive to maintain or surpass. Branding is an important part of Internet commerce, as branding allows companies to build their reputations as well as expand beyond the original product and service, and add to the revenue generated by the original brand. When working on branding, or building a brand, companies that are using web pages and search engine optimization have a few details to work out before being able to build a successful brand. Coordinating domain names and brand names are an important part of finding and keeping visitors and clients, as well as branding a new company. Coordination of a domain name and brand names lends identification to the idea or image of a specific product or service, which in turn lets visitors easily discovery the new brand. Branding is also a way to build an important company asset, which is a good reputation. Whether a company has no reputation, or a less than stellar reputation, branding can help change that. Branding can build an expectation about the company services or products, and can encourage the company to maintain that expectation, or exceed them, bringing better products and services to the market place. Brand equity is a phrase used in the marketing industry to try to describe the value of having a well-known brand name, based on the idea that the owner of a well-known brand name can generate more money from products with that brand name than from products with a less well known name, as consumers believe that a product with a well-known name is better than products with less well known names. Another word for "brand equity" is "brand value".

The components of Brand Equity are: "Brand Equity" is the sum total of all associations, experiences, and perceptions consumers have over time with a company, including its products, services, marketing, employees, retail stores, etc. As companies seek to establish greater Brand Equity, its three components must be considered separately. Awareness Unaided awareness is the foundation and first key measure of brand equity. Awareness comes from exposure, i.e. advertising, publicity, event sponsorship, store fronts and signage, email campaigns, direct mail campaigns, packaging, website, banner ads, etc. These things must be created with extraordinary style and creativity so they grab attention and have impact. Understanding Understanding comes from what you say about yourself, and, more importantly, what others say about you. Do consumers think about you the same way you think about yourself? In the past, understanding was shaped largely by the news media and word of mouth, but now social media gives brands a tremendous opportunity to listen to what consumers are saying and engage them in actual conversation. Imagine for a moment that your target audience could only think of you in one single way. What would you want it to be, and how many would say that very thing about you? Loyalty Loyalty comes through positive interaction with a brand. The more positive the experience, the deeper consumer loyalty becomes. Branding is a business strategy not just a marketing strategy. It is a long-term commitment, not a short-term initiative. Develop a positive experience through product design, employee training, creating a great shopping experience, and customer-friendly corporate policies. From a marketing perspective, look at highly personalized data base driven marketing programs, i.e. preferred customer programs, cross-sell programs, and particularly the personalization of your website. Attachment The attachment to a particular brand is the basic component of Brand Equity.

Question 3 What are the functions of marketing channels.

ANSWER: A marketing channel is a set of practices or activities necessary to transfer the ownership of 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. A marketing channel is a useful tool for management. Roles of marketing channel in marketing strategies: Links producers to buyers. Performs sales, advertising and promotion. Influences the firm's pricing strategy. Affecting product strategy through branding, policies, willingness to stock. Customizes profits, install, maintain, offer credit, etc.

An alternative term is distribution channel or 'route-to-market'. It is a 'path' or 'pipeline' through which goods and services flow in one direction (from vendor to the consumer), and the payments generated by them flow in the opposite direction (from consumer to the vendor). A marketing channel can be as short as being direct from the vendor to the consumer or may include several inter-connected (usually independent but mutually dependent) intermediaries such as wholesalers, distributors, agents, retailers. Each intermediary receives the item at one pricing point and moves it to the next higher pricing point until it reaches the final buyer. Marketing Channels can be long term or short term. Short term channels are influenced by market factors such as: business users, geographically concentrated, extensive technical knowledge and regular servicing required, and large orders. Short term product are influenced by factors such as: perishable, complex, and expensive. Short term producer factors include whether the manufacturer has adequate resources to perform channel functions, Broad product line, and channel control is important. Short Term competitive factors invlove: manufacturing feels satisfied with marketing intermediaries' performance in promoting products. Long term market factors include consumers, geographically dispersed, little technical knowledge and regular servicing is not required, and small orders. Product factors for long term marketing channels are: durable, standardized, and inexpensive. Producer factors are manufacturer lacks adequate resources to perform channel functions, limited product line, and channel control not important. The competitive factors are: manufacturer feels dissatisfied with marketing intermediaries' performance in promoting products

Question 4 - Explain the different methods which allows a media planner to decide budget allocation.
ANSWER: Media vehicle selection, number of insertions and message structure depend on the budget allotted for the communication program. A popular channel may charge more for advertisement but organization gets better viewership. A newspaper having high circulation charges premium for the advertisement but all the organization may not have enough budgets to support such campaign. Hence marketer would like to decide what is the budget for the communication program? And how shall it be allotted optimally? There are four different methods on which a media planner decides the allocation of advertisement budget. 1. Affordable method: The method is used by small companies who dont have enough communication budgets. In this method company allots the fixed amount for the communication program. The advantage of this method is company can have better control over the spending on the communication. The disadvantage is if sales require higher communication effort, company is not in a position to allocate the budget. 2. Percentage of sales method. In this method company allots the budget on the basis of total sales forecasted. This is the simplest method. Marketer can have better control over the budget and also have flexibility to allocate the budget. 3. Competition method: The Company sets its promotion budget on the basis of competitors advertising effort. Here company closely monitors the developments of the competitors communication program and study the industry trends in communication budget prior to setting up communication budget. 4. Objective and task method: The procedure involved in estimating the advertisement budget by this method are First, Objectives are set for the communication programs. Second, identifying the task to be performed to achieve the objective and third, estimating the cost of achieving these objectives.

Question 5 - Define the term direct marketing Explain the different methods adopted for direct marketing
ANSWER: Direct marketing is a channel-agnostic form of advertising that allows businesses and nonprofits to communicate straight to the customer, with advertising techniques such as mobile messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, and outdoor advertising. Direct marketing messages emphasize a focus on the customer, data, and accountability. Characteristics that distinguish direct marketing are: 1. Marketing messages are addressed directly to customers. Direct marketing relies on being able to address the members of a target market. Addressability comes in a variety of forms including email addresses, mobile phone numbers, Web browser cookies, fax numbers and United States and international postal addresses. 2. Direct marketing seeks to drive a specific "call to action." For example, an advertisement may ask the prospect to call a free phone number or click on a link to a website. 3. Direct marketing emphasizes trackable, measurable responses from customers regardless of medium. Direct marketing is practiced by businesses of all sizes from the smallest start-up to the leaders on the Fortune 500. A well-executed direct advertising campaign can prove a positive return on investment by showing how many potential customers responded to a clear call-to-action. General advertising eschews calls-for-action in favor of messages that try to build prospects emotional awareness or engagement with a brand. Even well-designed general advertisements rarely can prove their impact on the organizations bottom line. Direct marketing is concerned with establishing an individual relationship between the business offering a product or service and the final customer. Direct marketing has been defined by the Institute of Direct Marketing as: The planned recording, analysis and tracking of customer behaviour to develop relational marketing strategies. The process of direct marketing covers a wide range of promotional activities you may be familiar with. Direct Marketing Channels Any medium that can be used to deliver a communication to a customer can be employed in direct marketing, including: Email Marketing Sending marketing messages through email or Email marketing is one of the most widely

used direct-marketing methods.One reason for email marketing's popularity is that it is relatively inexpensive to design, test, and send an email message. It also allows marketers to deliver messages around the clock, and to accurately measure responses. Online Tools With the expansion of digital technology and tools, direct marketing is increasingly taking place through online channels. Most online advertising is delivered to a focused group of customers and has a trackable response. Display Ads are interactive ads that appear on the Web next to content on Web pages or Web services. Formats include static banners, pop ups, videos, and floating units. Customers can click on the ad to respond directly to the message or to find more detailed information. According to research by eMarketer, expenditures on online display ads rose 24.5% between 2010 and 2011. Search: 49% of US spending on Internet ads goes to search, in which advertisers pay for prominent placement among listings in search engines whenever a potential customer enters a relevant search term, allowing ads to be delivered to customers based upon their already-indicated search criteria. This paid placement industry generates more than $10 billion dollars for search companies. Marketers also use search engine optimization to drive traffic to their sites. Social Media Sites, such as Facebook and Twitter, also provide opportunities for direct marketers to communicate directly with customers by creating content to which customers can respond. Mobile Through mobile marketing, marketers engage with prospective customers and donors in an interactive manner through a mobile device or network, such as a cellphone, smartphone, or tablet. Types of mobile marketing messages include: SMS: (short message service) marketing communications are sent in the form of text messages, also known as texting. MMS: (multi-media message service) These messages use elements such as images, video, and audio; Mobile Applications: Smartphone-based mobile apps contain several types of messages. Push Notifications are direct messages sent to a user either automatically or as part of a campaign. They include transactional, marketing, geo-based, and more. Rich Push Notifications are full HTML Push Notifications. Mobile apps also contain Interactive ads that appear inside the mobile application or app; Location-Based Marketing: marketing messages delivered directly to a mobile device based on the user's location; QR Codes (quick-response barcodes): This is a type of 2D barcode with an encoded link that can be accessed from a smartphone. This technology is increasingly being used for everything

from special offers to product information. Mobile Banner Ads: Like standard banner ads for desktop Web pages but smaller to fit on mobile screens and run on the mobile content network Direct Mail The term "direct mail" is used to refer to communications sent to potential customers or donors via the postal service and other delivery services. Direct mail is sent to customers based on criteria such as age, income, location, profession, buying pattern, etc. Direct mail includes advertising circulars, catalogs, free-trial CDs, pre-approved credit card applications, and other unsolicited merchandising invitations delivered by mail to homes and businesses. Bulk mailings are a particularly popular method of promotion for businesses operating in the financial services, home computer, and travel and tourism industries. In many developed countries, direct mail represents such a significant amount of the total volume of mail that special rate classes have been established. In the United States and United Kingdom, for example, there are bulk mail rates that enable marketers to send mail at rates that are substantially lower than regular first-class rates. In order to qualify for these rates, marketers must format and sort the mail in particular ways which reduces the handling (and therefore costs) required by the postal service. In the US, marketers send over 90 billion pieces of direct mail per year Telemarketing Another common form of direct marketing is telemarketing, in which marketers contact customers by phone. The primary benefit to businesses is increased lead generation, which helps businesses increase sales volume and customer base. The most successful telemarketing service providers focus on generating more "qualified" leads that have a higher probability of getting converted into actual sales. The National Do Not Call Registry was created in 2003 to offer consumers a choice whether to receive telemarketing calls at home. The FTC created the National Do Not Call Registry after a comprehensive review of the Telemarketing Sales Rule (TSR).The do-not-call provisions of the TSR cover any plan, program, or campaign to sell goods or services through interstate phone calls. The provisions do not cover calls from political organizations, charities, telephone surveyors, or companies with which a customer has an existing business relationship. Voicemail Marketing Voicemail marketing emerged out of the market prevalence of personal voice mailboxes, and business voicemail systems. Voicemail marketing presented a cost effective means

by which to reach people directly, by voice. Abuse of consumer marketing applications of voicemail marketing resulted in an abundance of "voice-spam," and prompted many jurisdictions to pass laws regulating consumer voicemail marketing. More recently, businesses have utilized guided voicemail (an application where pre-recorded voicemails are guided by live callers) to accomplish personalized business-to-business marketing formerly reserved for telemarketing. Because guided voicemail is used to contact only businesses, it is exempt from Do Not Call regulations in place for other forms of voicemail marketing. Voicemail courier is a similar form of voicemail marketing with both business-to-business and business-to-consumer applications. Broadcast Faxing Broadcast faxing, in which faxes are sent to multiple recipients, is now less common than in the past.This is partly due to laws in the United States and elsewhere which regulate its use for consumer marketing. In 2005, President Bush signed into law S. 714, the Junk Fax Prevention Act of 2005 (JFPA), which allows marketers to send commercial faxes to those with whom they have an established business relationship (EBR), but imposes some new requirements. These requirements include providing an opt-out notice on the first page of faxes and establishing a system to accept opt-outs at any time of the day. Fax senders must begin complying with these new requirements, which are described in this fact sheet. Roughly 2% of direct marketers use fax, mostly for business-to-business marketing campaigns.Also, due to the popularity of a variety of digital communication methods, the overall use of faxes is less than in the past. Couponing Couponing is used in print and digital media to elicit a response from the reader. An example is a coupon which the reader receives through the mail and takes to a store's check-out counter to receive a discount. Digital Coupons: Manufacturers and retailers make coupons available online for electronic orders that can be downloaded and printed. Digital coupons are available on company websites, social media outlets, texts, and email alerts. There are an increasing number of mobile phone applications offering digital coupons for direct use. Daily Deal Sites offer local and online deals each day, and are becoming increasingly popular. Customers sign up to receive notice of discounts and offers, which are sent daily by email. Purchases are often made using a special coupon code or promotional code. The largest of these sites, Groupon, has over 83 million subscribers.

 Direct Response TV Direct marketing via television (commonly referred to as DRTV) has two basic forms: long form (usually half-hour or hour-long segments that explain a product in detail and are commonly referred to as infomercials) and short form, which refers to typical 30-second or 60-second commercials that ask viewers for an immediate response (typically to call a phone number on screen or go to a website). TV-response marketing i.e. infomercials can be considered a form of direct marketing, since responses are in the form of calls to telephone numbers given on-air. This allows marketers to reasonably conclude that the calls are due to a particular campaign, and enables them to obtain customers' phone numbers as targets for telemarketing. One of the most famous DRTV commercials was for Ginsu Knives by Ginsu Products, Inc. of RI. Several aspects of ad, such as its use of adding items to the offer and the guarantee of satisfaction were much copied, and came to be considered part of the formula for success with short-form direct-response TV ads (DRTV) Direct Response Radio In direct response radio, ads contain a call to action with a specific tracking mechanism. Often, this tracking mechanism is a "call now" prompt with a toll-free phone number or a unique Web URL. Results of the ad can be tracked in terms of calls, orders, customers, leads, sales, revenue, and profits that result from the airing of those ads. Direct Response Magazines and Newspapers Magazine and newspaper ads often include a direct response call-to-action, such as a toll-free number, a coupon redeemable at a brick-and-mortar store, or a QR code that can be scanned by a mobile device these methods are all forms of direct marketing, because they elicit a direct and measurable action from the customer. Direct Selling Direct selling is the sale of products by face-to-face contact with the customer, either by having salespeople approach potential customers in person, or through indirect means such asTupperware parties. Grassroots/Community Marketing The door-to-door distribution of flyers and leaflets within a local community is a business-to-consumer form of direct marketing used extensively by restaurants, fast food companies, and many other business focusing on a local catchment. Similar to direct mail marketing, this method is targeted purely by area and community, and costs a fraction of the amount of a mailshot, since it is not necessary to purchase stamps, envelopes, or address lists with the names of home occupants.

Question 6 - Differentiate between International marketing and Domestic marketing.

Domestic marketing and International marketing are same when it comes to the fundamental principle of marketing. Marketing is an integral part of any business that refers to plans and policies adopted by any individual or organization to reach out to its potential customers. A web definition defines marketing as a process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals. With the world shrinking at a fast pace, the boundaries between nations are melting and companies are now progressing from catering to local markets to reach out to customers in different parts of the world. Marketing is a ploy that is used to attract, satisfy and retain customers. Whether done at a local level or at the global level, the fundamental concepts of marketing remain the same. Domestic Marketing The marketing strategies that are employed to attract and influence customers within the political boundaries of a country are known as Domestic marketing. When a company caters only to local markets, even though it may be competing against foreign companies operating within the country, it is said to be involved in domestic marketing. The focus of companies is on the local customer and market only and no thought is given to overseas markets. All the product and services are produced keeping in mind local customers only. International Marketing When there are no boundaries for a company and it targets customers overseas or in another country, it is said to be engaged in international marketing. If we go by the definition of marketing given above, the process becomes multinational in this case. As such, and in a simplified way, it is nothing but application of marketing principles across countries. Here it is interesting to note that the techniques used in international marketing are primarily those of the home country or the country which has the headquarters of the company. In America and Europe, many experts believe international marketing to be similar to exporting. According to another definition, international marketing refers to business activities that direct the flow of goods and services of a company to consumers in more than one country for profit purposes only. First, International marketing is facing a more complex market environment . Domestic marketing is conducted in this country and so faced corresponding structure of the market environment is relatively simple ,which consists of those factors that are more familiar to companies -- the domestic political, economic, legal, cultural and so on. However, International marketing is facing

a more complex environment, it's a market with multi-level structure. This is because those companies who engage in international marketing , will inevitably be subjected to the world market environment. Which requires companies to face the world market environment, including the world's political, military, economic, technological and other aspects. Second, International marketing is facing more Uncertainties factors The contradiction between subjective understanding and objective reality, coupled with the volatility of the objective process, international marketing facd more uncertainties factors for the companies .Compared with domestic marketing, it's more difficult to make sure the total demand, purchasers and competitors and more difficult to investigate and predict wholesale segment, retail structure, buying habits in international marketing. Third, International marketing is facing more diverse selection of marketing programs Companies in the domestic market, although also need to deal with different regions and different programs for different target markets, different strategies, and even the use of different promotions, but the overall program is the same however. the international market is a market composed of different countries .Enterprises in the international marketing, its marketing programs are of diversity, Enterprises in different country markets to sell their products, not unified marketing program, and must host country market, different scenarios were developed. Four, Marketing in international marketing is more difficult Besides the complex environment and the uncertain factors ,diverse selection programs, international marketing have more risks and meet more fierce competition. The risks are added by the changing international political situation and the fluctuate exchange rate .Competitor's brilliant competitive strategy in price, promotion and products made the international market more and more narrow. Difference between domestic marketing and international marketing As explained earlier, both domestic as well as international marketing refer to the same marketing principles. However, there are glaring dissimilarities between the two. Scope The scope of domestic marketing is limited and will eventually dry up. On the other end, international marketing has endless opportunities and scope. Benefits As is obvious, the benefits in domestic marketing are less than in international marketing. Furthermore, there is an added incentive of foreign currency that is important from the point of view of the home country as well. Sharing of technology Domestic marketing is limited in the use of technology whereas international marketing allows use and sharing of latest technologies. Political relations Domestic marketing has nothing to do with political relations whereas

international marketing leads to improvement in political relations between countries and also increased level of cooperation as a result. Barriers In domestic marketing there are no barriers but in international marketing there are many barriers such as cross cultural differences, language, currency, traditions and customs