Q.1 A. Explain the six criteria for effective market segmentation. Ans.

Process of dividing the market according to similarities that exist among the various subgroups within the market. Market segmentation comes about as a result of the observation that all potential users of a product are not alike, and that the same general appeal will not interest all prospects. There are basic market segmentation strategies: 1.Geographic segmentation:-The market is segmented according to geographic criterianations, states, regions, countries, cities, neighborhoods, or zip codes. ith respect to region, in rain! regions !ou can sell things like raincoats, umbrellas and gumboots. 2.Demographic segmentation:- "emographic segmentation consists of dividing the market into groups based on variables such as age, gender, famil! size, income, occupation, education, religion, race and nationalit!. 3.Ps chographic segmentation:- Ps!chographics is the science of using ps!cholog! and demographics to better understand consumers. Ps!chographic segmentation: consumers are divided according to their lifest!le, personalit!, values and social class. !.Positive market segmentation:- Market segmenting is dividing the market into groups of individual markets with similar wants or needs that a compan! divides into distinct groups which have distinct needs, wants, behavior or which might want different products and services. ".#ehavioral segmentation:- #n behavioral segmentation, consumers are divided into groups according to their knowledge of, attitude towards, use of or response to a product. #t is actuall! based on the behavior of the consumer. $.%ccasions:- $egmentation according to occasions is based on the arising of special need and desires in consumers at various occasions. #. Disc&ss the t pes of target marketing strategies. Ans.T here are some target marketing strategies. 1. 'ingle 'egment 'trateg : This strateg! involves the use of onl! one marketing mix for one market segment. %suall! small scale companies with limited budget and resources opt for this form of target marketing strateg!. 2. 'elective 'peciali(ation 'trateg : #n this strateg!, several marketing mixes are implemented in different segments. The same product is marketed differentl! in different segments, which is wh! this target marketing strateg! is also known as differentiated strateg!. 3. Pro)&ct 'peciali(ation : The product manufactured is customized and then marketed, so as to cater to different market segments. !. *arket 'peciali(ation 'trateg : #n this form of target marketing, the compan! first finalizes the market segment the! wish to cater to and then manufacture a variet! of products exclusivel! for this segment. ". +&ll *arket ,overage 'trateg :The compan! uses this strateg! when the! wish to serve the mass market. This means a single marketing mix combination can be used or even several marketing mixes are used to cater to segments made in this entire market.

2. Explain the cons&mer -& ing )ecision process. Ans &ive stages comprise the consumer bu!ing decision process: problem recognition, information search, alternative evaluation, purchase decision and post'purchase behavior. (ach of these stages can be a deliberate action such as researching product options or a subconscious thought like recognizing the )uice in the refrigerator has almost run out. * merchant or business must understand the steps a customer goes through to make a purchase. * merchant can influence a customer+s purchase b! providing targeted information, advertisements or guidance. Pro-lem .ecognition: ,onsumers recognize a problem based on ph!sical cues, stimulus response or a need. &or example, a customer could smell fresh bread and realize she is hungr! or she could have a broken pair of glasses and know she needs a new pair. -isual clues trigger problem recognition. &or example, a beverage in a clear container shows when it is getting low, or a sticker in a car window reminds customers when it is time for an oil change. /nformation 'earch: ,ustomers in the information search stage of the bu!ing process look for solutions to their problems or needs. The! remember what t!pes of purchases solved a similar problem in the past. &or more expensive purchases, customers ma! read reviews, look through newspapers or research the product online. Alternative Eval&ation: ,onsumers evaluate their purchase options based on product attributes, such as technical specifications, through sub)ective factors, such as brands, and through personal experience, such as sampling or testing products. ,onsumer and compan! reviews can influence a consumer+s product evaluation. P&rchase Decision: * consumer+s decision to purchase something includes where to bu!, when to bu! and whether to bu!. &or routine goods such as groceries, consumers ma! simpl! go to their favorite grocer! store, but for electronic purchases, the! ma! browse multiple stores. The! will evaluate each merchant based on prior experience with the store, special offers and whether the! can return the product easil!. Post-P&rchase #ehavior: *fter making a purchase, a consumer mentall! ranks her purchase satisfaction. $he will evaluate if she liked the store, if she en)o!s the product and the .ualit! of the product. This evaluation determines whether the customer will purchase the product or brand again and whether it would be from the same store. ,ustomers who are happ! with their purchases and feel the! received a .ualit! product at a good price, will become repeat customers and will tell others about their experience.

Q.3 A. Disc&ss the 0enr Assael mo)el on -& ing )ecision -ehavio&r. Ans. /enr! *ssael has come up with an explanation to anal!se wh! consumers bu! the goods the! bu!. /e explained the relationship between the level of involvement b! the consumers in the purchase of goods and services and the level at which diverse goods or services differ from one another. /e therefore came up with four different bu!ing behaviours as explained in:' ,omplex -& ing -ehavio&r 1 ,onsumers are highl! involved in a purchase and aware of significant differences among brands. This is usuall! the case when the product is expensive, bought infre.uentl!, risk!, and highl! self'expressive. (xample: personal computer. Dissonance-re)&cing 1 $ometimes, the consumer is highl! involved in a purchase but sees little differences in the brands. The high involvement is based on the fact that the purchase is expensive, infre.uent, and risk!. (xample: carpet. 0a-it&al -& ing -ehavio&r 1 Man! products are bought under conditions flow consumer involvement and the absence of significant brand differences. ,onsidering salt, consumers have little involvement in this product categor!. The! go to the store and reach for a brand. #f the! keep reaching for the same brand, it is out of habit and not strong brand lo!alt!. 2ariet -seeking -& ing 1 $ome bu!ing situations are characterised b! low consumer involvement but significant brand differences. /ere consumers often do a lot of brand switching. ,onsumers do the brand switching for the sake of variet! rather than dissatisfaction. (xample: wafer potato chips.

# Explain the five stages of A)option Process. Ans. * large number of factors are examined to know the reaction of consumers regarding adoption of a new product. The process of accepting new product ideas b! individual customers is popularl! known as 0adoption process. the five stages of consumer purchase or re)ection decision in an individualised adoption process. 1. A3areness 1 "uring the first stage of adoption process, the product innovation is explained to the consumers. This process gives information about the new product or service. 2. /nterest 1 hen consumers develop an interest in the product or product categor!, the! search for information about how the innovation can benefit them. 3. Eval&ation 1 The evaluation stage represents a kind of 0mental trial1 ofthe product innovation. 2nl! if the consumers1 evaluation of the innovation is satisfactor!, the! will actuall! tr! the product. #n case the evaluation is unsatisfactor!, the product is automaticall! re)ected. !. 4rial 1 #n this stage, consumers use the product on a limited basis. Their experience with the product provides them with the critical information that the! need to adopt or re)ect it. ". A)option 1 #n this stage, consumers decide to make full and regular use of the product.

Q.! Descri-e the components of the micro environment of marketing Ans. Micro environment is the immediate environment in which marketers have to take decisions. The pla!ers of this environment are called actors as the! have a direct bearing on the marketing decisions. This environment identifies the wa! a compan! does business and against whom it stands in the market. 1. 4he compan : $ome compan! factors that affect the marketing decisions are: i3 ,&lt&re an) val&e s stem 2rganisational culture can be viewed as the s!stem of shared values and beliefs that shape a compan!1s behavioural norms. * value is an enduring preference as a mode of conduct or an end state. ii5 *ission an) o-6ectives 1 The mission and ob)ectives of the compan! guide the priorities, direction of development, business philosoph!, and business polic!. iii3 *anagement str&ct&re an) nat&re 1 $tructure is the manner in which the tasks and sub'tasks of the organisation are related. $tructure is concerned top management and the pattern of share holding. iii3 0&man reso&rce 1 This concerns factors like manpower planning, recruitment and selection, compensation, communication, and appraisal. 2. /nterme)iaries: #ntermediaries are independent business units and the! carr! the compan!1s products and services to the customers. Prominent intermediaries include wholesalers, retailers, merchants, selling agents, brokers, etc. 3. P&-lic: Positive and favourable public opinion is crucial to marketing success since the public is the authorit! that permits the existence and operation of competitive marketing s!stems. These public can be classified as welcome public, sought public, and unsought public. &or example, a5 #nvestors and financial institutions are under the categor! of welcome public, -5 4overnment and media are counted as sought public. c5 Pressure groups like consumer activists and environmental activists are unsought public because the! would create problems for the firm through their righteous activities. !. ,ompetitors: $uccess or failure of an offer largel! depends on how competitors react to the compan!1s offer. 4odre) was a successful refrigerator manufacturer. 2nce competition intensified, the compan! started losing market share. ". '&ppliers: #ncrease in the price of raw materials will have a bang on effect on themarketing mix strateg! of an organisation. *s a result, the prices ma! be forced up. This is the impact that the suppliers can have. ,loser relationship with suppliers is one wa! of ensuring competitive and .ualit! products for an organisation. $. ,&stomers: 2rganisations exist because of customers. 5o customer means, no business. 2rganisations.

Q". A .Explain the t pes of *arketing /nformation s stems Ans. Marketing #nformation $!stems supplies three t!pes of information, which are: i3Monitoring information, ii36ecurrent information, iii3,ustomised information i5*onitoring information 1 Monitoring information is the informationobtained from scanning external sources which include newspapers,trade publications, technical )ournals, magazines, directories, balance sheets of companies, and s!ndicated and published research reports. "ata are captured to monitor changes and trends related to marketing situation. $ome of these data can be purchased at a price from commercial sources such as market research agencies or from government sources. ii5 .ec&rrent information 1 6ecurrent information is the information that is generated at regular intervals like monthl! sales reports7 the stock statements, the trial balance, etc. #n M#$, recurrent information is the data that M#$ supplies at a weekl!, monthl!, .uarterl!, or annual interval, which are made available regularl!. #t can also provide information on customer awareness of compan!1s brands, advertising campaigns, and similar data on close competitors. iii5,&stomise) information 1 ,ustomised information is also called problem'related, which is developed in response to some specific re.uirements related to a marketing problem or an! particular data re.uested b! a manager. #. Disc&ss the )ifferent components of */' Ans. ,omponents of */' M#$ is to provide inputs from marketing environmental factors like target markets, marketing channels, competitors, consumers, and other forces for creating, changing, and modif!ing marketing decisions in the formulation of relevant and competitive marketing strategies. &igure explains the different components of M#$ a5 /nternal recor) s stems #nternal record s!stems are available within the compan! across various departments and provide relevant, routine information for making marketing decisions. The most evident internal record s!stem is the purchase and pa!ment c!cle s!stems. 8 followed b! consumers, and the time taken to fulfil the orders in the shortest possible time. -5 *arketing intelligence s stem 1 * marketing intelligence s!stem is the s!stem of collecting and collating data. This s!stem tries to capture relevant data from the external environment. #t collects and manages data from the external environment about the competitors1 moves. c5 Anal tical marketing s stems 1 *nal!tical marketing s!stems are also known as Marketing "ecision $upport $!stems 9M"$$3. * M"$$ is a coordinated collection of data, s!stems, tools, and techni.ues with supporting software and hardware. )5 *arketing research s stems 1 Marketing research s!stems are based on s!stems and processes that help marketing managers to design,collect, anal!se, and report data and findings relevant to a specific marketing situation facing the compan!. #t also involves anal!sis of information, which includes a coordinated collection of data, s!stems,tools, and techni.ues with supporting software

Q.$ Descri-e the factors to -e consi)ere) 3hile )eveloping an Effective marketing mix Ans. Developing an Effective *arketing *ix: To develop an effective marketing mix the compan! should consider thefollowing factors and then choose the most appropriate mix of elements 9:Ps3 to target the customers: ,ompan 7s reso&rces 1 These are one of the prime factors affecting the compan!1s marketing mix. The financial, human, and technological resources available with the compan! affect the composition of the marketing mix. The firm needs to conduct a $trength, eakness, 2pportunit!, and Threat 9$ 2T3 anal!sis for the business unit. $ 2T anal!sis diagram with likel! sources of strengths, weaknesses, opportunities, and threats of a compan!. Demographics 1 #t implies to the changes in the composition of the market, the demand of the population, the opportunities in the countr!, etc. thataffect the marketing mix. ,&rrent an) pro6ecte) economic con)itions #t connotes the economic factors like inflation, emplo!ment, taxes, and other economic factors that influence marketing mix decisions. *arket potential *nal!sis of market potential for new products considers market growth, prospect+s need for !our offering, the benefits of the offering, the number of barriers to immediate use, the credibilit! of the offering and the impact on the customer+s dail! operations. ,ompetitors The! are important considerations that affect the marketing mix of a firm as the potential for competitive retaliation is based on the competitor1s resources, commitment to the industr!, cash position, predictabilit!, and status of the market. &ive forces anal!sis model, which is an important tool for assessing the potential for profitabilit! in an industr!. #t works b! looking at the strength of five important forces that affect competition. '&pplier po3er The power of suppliers to drive up the prices of inputs. #& er po3er The power of customers to drive down products1 prices. ,ompetitive rivalr 1 competition in the industr!. The strength of

4hreat of s&-stit&tion 1 The extent to which different products and services can be used in place of a particular product. 4hreat of ne3 entr 1 The ease with which new competitors can enter the market if the! see that a product is making good profits 9and then drive !our prices down3.;! thinking about how each force affects a product and b! identif!ing thestrength and direction of each force, !ou can .uickl! assess the strength ofa product1s position and abilit! to make a sustained profit in the industr!.