ASSIGNMENT

Course Code: MS - 06
Course Title: Marketing for Managers
Assignment Code: MS-06 /TMA/SEM - I/2019

Q1.(a) What do you understand by the terms “Needs and Wants”? Why and when these terms
assume significance in the context of marketing. Elaborate with a hypothetical example of
your choice. What is marketing? Discuss the various tasks necessary for successful
marketing.
Ans: Needs: The easiest explanation of the concept “needs” is the basic human requirements like
shelter, clothe, food, water, etc.
These are essential for human beings to survive.

If we take the topic further, other needs are education, healthcare, insurance, pension, etc.
Basically, things that we can associate with “needs” don’t require a boost because these are the
products and services people always buy (for example, people who are into home security, always
purchase Arlo or Arlo Pro Security Cameras).
Though, don’t feel relieved if you’re planning to promote a product or a service that falls under the
“needs” category.
In the 21st century, thousands of brands are promoting the same products and services from the
needs category.
In other words, there are thousands of competitors trying to sell the same things you are.
In addition, needs aren’t only physical. Needs can be a social thing, for example, social class,
belonging to a certain society and need of self-expression.
Wants: This is quite different from needs. Wants aren’t permanent and it regularly changes. As time
passes, people and location change, wants change accordingly. Wants aren’t essential for humans to
survive, but it’s associated with needs.
For example, if we always manage to satisfy our wants, it transforms into a need.
Needs and Wants significance in the context of marketing
Needs are the state of self-deprivation in an individual. The starting point of marketing is human
needs. Human needs can be physiological, social, cultural and individual. There are unlimited
human needs. All new inventions try to satisfy the human needs. We cannot imagine marketing
activities or existence of the market in the absence of human needs.
Wants are desires for specific satisfiers of needs. The needs of the human are unlimited. So, to
satisfy unlimited needs a person desire for different products, services and methods. Such desire to
satisfy the needs is called wants. Wants depend on the culture, social class, and individual

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personality. A marketer can influence human wants by providing a variety of need-satisfying
objects.
Marketing: Marketing is defined by the American Marketing Association as "the activity, set of
institutions, and processes for creating, communicating, delivering, and exchanging offerings that
have value for customers, clients, partners, and society at large."The term developed from the
original meaning which referred literally to going to market with goods for sale. From a sales
process engineering perspective, marketing is "a set of processes that are interconnected and
interdependent with other functions" of a business aimed at achieving customer interest and
satisfaction.
Marketing practice tended to be seen as a creative industry in the past, which included advertising,
distribution and selling. However, because the academic study of marketing makes extensive use of
social sciences, psychology, sociology, mathematics, economics, anthropology and neuroscience, the
profession is now widely recognized as a science,allowing numerous universities to offer Master-of-
Science (MSc) programs.
The process of marketing is that of bringing a product to market, which includes these steps: broad
market research; market targeting and market segmentation; determining distribution, pricing and
promotion strategies; developing a communications strategy; budgeting; and visioning long-term
market development goals.Many parts of the marketing process (e.g. product design, art director,
brand management, advertising, copywriting etc.) involve use of the creative arts.
The various tasks necessary for successful marketing
a) Develop a market strategy and plan. This is your first task. Here you need to identify the
organizations potential long run opportunities with consideration of their market
experience and core competencies.
b) Capture Market Insights. Marketers must take the necessary steps to understand what is
happening both on the inside and outside the organization. This knowledge is acquired by
monitoring the marketing environment and conducting extensive market research in order
to assess buyer needs and wants as well as both the actual and potential market size for
your product and/or service.
c) Connect with customers. Connecting with customers is a vey big aid in marketing success.
With that said a successful marketer must develop a way to create the best value with their
product and/or service for their target market. They must also develop and maintain
strong, profitable, and long term relationships with consumers.
d) Build a strong brand. A marketer must know and understand how customers and potential
customers perceive their brand. Once they understand the strengths and weakness, the
positive and negative perceptions of their brand they then must develop and communicate
the appropriate positioning and deal with their competitors accordingly.
e) Shape your marketing offer. Your marketing plan is centered around your product. So, when
shaping your offer to present to customers and potential markets consider not only your
product, but your product quality, design, features, and overall packaging then price and
offer accordingly.
f) Deliver value. A successful marketer delivers value to the actual and potential market by
identifying, recruiting, and linking with retailers, wholesalers, and other marketing
channels.

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 g) Create long term growth. A successful marketer creates long term growth by staying abreast
and taking into account ever changing global opportunities and challenges as well. They
also create long term growth by not only developing a marketing plan, but implementing it
as well.
h) Communicate value. A marketer must be successful in communicating the value that their
offer holds. This is achieved through an integrated marketing communication plan that
maximizes exposure such as through sales promotions, direct marketing, and advertising.
Q1.(b)Distinguish strategy from marketing strategy. Explain the process involved in the
formulation of marketing strategy for the following:-

(i)Knocked down furniture.

(ii)Battery operated small sized passenger car
Ans: Marketing strategies provide the detailed blueprint on how to achieve the marketing objective.
Strategies list which steps to take, specific action necessary to achieve each step and the expected
timeline by which to accomplish each stage. While the management team is responsible for devising
the marketing objectives, workers at the supervisory level and below are in charge of completing
the actual steps. An example of a marketing strategy could be hosting a sweepstakes. Details of the
strategy include determining a prize for the top five winners, establishing promotional outlets for
the sweepstakes including commercials and newspaper print and writing the fine print of the rules
of entry.
(i) Process involved in the formulation of marketing strategy for the Knocked down
furniture
Using wood to create gorgeous pieces of furniture takes skill, artistry and craftsmanship. You also
need to implement a promotional strategy to find buyers who appreciate the quality and
workmanship that goes into your furniture. Whether you sell wood kitchen cabinets, living room
and bedroom sets or office furniture from your workshop or from a storefront, a mix of Internet
and traditional promotions give you the best shot of turning your passion for making furniture into
a successful business.
Demographics: Promoting your furniture starts with identifying the common characteristics of
your clients because this helps you find similar prospective buyers. Learn everything you can about
your clients, including their age, ability to afford your furniture and style preferences for using
wood in furnishings in their homes. If you sell furniture to businesses, look at the size of the
companies you've sold to, their furniture budget and the title of the decision-maker. Determine
what prompts them to buy wood furniture, such as to create a comfortable office setting or keep a
certain style to reflect their branding.
Positioning: As you begin promoting your furniture company, you need to differentiate your
business from other wood furniture makers. For instance, you might want to promote specific
locally grown or exotic woods you use in your pieces. Unless you sell your furniture at low prices,
you need to stand out from cheap furniture manufacturers so customers understand the quality and
consistency in workmanship they get by buying your furniture. If you manufacture wood office
furniture, mention the high quality that makes the customer’s office look professional, and point out
any ergonomic design you use. Other ways to position your company include focusing on your use

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of environmentally sustainable wood, providing speedy delivery of the furniture and offering
extraordinary service.
Digital Medium: Create a website that showcases the types of custom and ready-made furniture
you sell, and include photos of you or your employees building the pieces to help express how you
differ from cookie-cutter furniture companies. If you do not have a store, explain how you are
better able to provide top-notch service to your customers from your workshop. Use social
networking sites to share information with prospects and customers about the types of furniture
you build and the reasons you use certain species of wood in your pieces. Add photos as often as
possible to show the pieces you’ve designed, and include tips to help customers keep the furniture
beautiful for years to come.
Traditional Ads: Look for local advertising opportunities in publications, radio and television that
appeal to your target market. For instance, if your target market is high-income families, run ads in
special sections of the local newspaper when they feature high-end interior design or beautiful
home interiors. Network with construction companies, remodelers and interior designers to
promote your furniture as a way to beautify their clients' homes and offices. Advertise tours of your
workshop or manufacturing area to build interest from potential customers, and allow plenty of
time after the tour to sit down with visitors to discuss their needs for custom wood pieces that fit
their style and vision.
(ii)Process involved in the formulation of marketing strategy for the Battery operated small
sized passenger car
A battery electric vehicle (BEV), pure electric vehicle or all-electric vehicle is a type of electric
vehicle (EV) that uses chemical energy stored in rechargeable battery packs. BEVs use electric
motors and motor controllers instead of internal combustion engines (ICEs) for propulsion. They
derive all power from battery packs and thus have no internal combustion engine, fuel cell, or fuel
tank. BEVs include - but are not limited to- motorcycles, bicycles, scooters, skateboards, rail cars,
watercraft, forklifts, buses, trucks, and cars.
Electric vehicles (EVs) represent exciting opportunities for the UK: as a technology to reduce
greenhouse gas emissions from our largest-emitting sector; as a tool to reduce local air pollution,
the second-highest cause of avoidable mortality in the country; and as a new industry with
substantial export opportunities. International market trends suggest that electric cars and vans
will reach price equivalency with internal combustion engine (ICE) vehicles by the mid-2020s, and
that EV sales will overtake petrol and diesel sales by the late 2030s. The India’s automotive sector
will need to take a lead in this transition if it is to remain a major player in the global market. A shift
away from ICEs to zero emission vehicles on India roads is further essential if we are to achieve our
national decarbonisation targets at least possible cost.
Targets: Recognising these challenges, the Government has set ambitions to ensure that almost
every car and van in the UK is a zero emission vehicle by 2050, and to make the UK a world leader
in EV and battery technologies. However, its targets for 2040–to phase out sales of new
’conventional’ petrol and diesel cars and vans, and to require all new cars and vans to be
‘effectively’ zero emission–are vague and insufficiently ambitious to deliver on its longer-term aims.
If the Government is genuinely committed to leading the EV transition and meeting its
decarbonisation targets, it needs to promote investment in this new technology by clarifying and

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increasing the ambition of its sales targets. We recommend that the Government bring forwards a
clear, precise target for new sales of cars and vans to be truly zero emission by 2032.
Purchase support: The upfront costs of purchasing an EV remain very high relative to ICE vehicles.
Significant additional deterrents to EVs include ‘range anxiety’ (the concern that an EV will not have
sufficient charge to complete a given journey) and the limited choice of vehicle models. These
factors mean that incentives are required to encourage motorists to make the switch to EVs.
However, the Government has recently announced sudden and substantial cuts to the Plug-in Grant
Scheme, in a move that runs counter to the advice of the Committee on Climate Change and
witnesses to our inquiry. We recommend that purchase support for EVs should be maintained at
October 2018 levels for the time being, and more generally until the cost of EVs nears price parity
with conventional ICE vehicles. In addition, existing grants and tax incentives are in practice only
accessible to wealthier motorists. The Government should explore more creative support options to
ensure that all motorists can benefit from EVs, for example through car clubs and the second-hand
market.
The current fiscal regime for EVs provides inconsistent messages about the Government’s
ambitions for EVs. We recommend that the Government aligns new fiscal changes with the zero
emissions target. EVs should be promoted by preferential Vehicle Excise Duty rates and other
incentives, and preferential rates on company car tax for EVs should be brought forward without
delay.
Q2.(a) What is a product? When and why do firms generally diversity their product
portfolio? Discuss with an example from FMCG category.
Ans: In general, a product is defined as a “thing produced by labor or effort” or the “result of an act
or a process. ” The word “product” stems from the verb “produce”, from the Latin prōdūce(re) “(to)
lead or bring forth. ” Since 1575, the word “product” has referred to anything produced.
In marketing, a product is anything that can be offered to a market that might satisfy a want or
need. In retail, products are called merchandise. In manufacturing, products are purchased as raw
materials and sold as finished goods. Commodities are usually raw materials such as metals and
agricultural products, but the term can also refer to anything widely available in the open market.
In project management, products are the formal definition of the project deliverables that form the
objectives of the project.
1. A good, idea, method, information, object or service created as a result of a process and serves a
need or satisfies a want. It has a combination of tangible and intangible attributes (benefits,
features, functions, uses) that a seller offers a buyer for purchase. For example a seller of a
toothbrush not only offers the physical product but also the idea that the consumer will be
improving the health of their teeth.
2. Law: A commercially distributed good that is (1) tangible personal property, (2) output or result
of a fabrication, manufacturing, or production process, and (3) passes through a distribution
channel before being consumed or used.
3. Marketing: A good or service that most closely meets the requirements of a particular market and
yields enough profit to justify its continued existence.

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Firms generally diversity their product portfolio
A product can be classified as tangible or intangible. A tangible product is a physical object that can
be perceived by touch such as a building, vehicle, gadget, or clothing. An intangible product is a
product that can only be perceived indirectly such as an insurance policy. Services can be broadly
classified under intangible products which can be durable or non durable.
By use: In its online product catalog, retailer Sears, Roebuck and Company divides its products into
“departments”, then presents products to potential shoppers according to (1) function or (2)
brand.Each product has a Sears item-number and a manufacturer’s model-number. Sears uses the
departments and product groupings with the intention of helping customers browse products by
function or brand within a traditional department-store structure.
By association: A product line is "a group of products that are closely related, either because they
function in a similar manner, are sold to the same customer groups, are marketed through the same
types of outlets, or fall within given price ranges."[5] Many businesses offer a range of product lines
which may be unique to a single organization or may be common across the business's industry. In
2002 the US Census compiled revenue figures for the finance and insurance industry by various
product lines such as "accident, health and medical insurance premiums" and "income from secured
consumer loans".[6] Within the insurance industry, product lines are indicated by the type of risk
coverage, such as auto insurance, commercial insurance and life insurance.
National and international product classifications
Various classification systems for products have been developed for economic statistical purposes.
The NAFTA signatories are working on a system that classifies products called NAPCS as a
companion to North American Industry Classification System (NAICS).The European Union uses a
"Classification of Products by Activity" among other product classifications.

Example from FMCG category

FMCG major Hindustan Lever launched ‘perfect radiance’ as a premium variant of ‘fair & lovely
range’ followed by costly shampoo variant in ‘Lakme’. The most recent premium range from this
company is ‘Pond’s age miracle range’.
Godrej has been slow in stepping into the premium segment with high-end products like Cinthol
hand sanitiser and the Snuggies brand diapers. With its aromatherapy range of skincare products,
hand-wash and bathing gels, Colgate also entered in the domain of premium segment. Marico’s
portfolio covers, at present, premium products in segments such as hair care (Parachute advanced,
after-shower cream and hair gels), baby care and soaps (manjal). Keeping in line with changing
trends, it is essential for a company to upgrade to premium segment. Their products are lifestyle
oriented. In order to cater to the new generation of customers, we launch new designs every
quarter with thorough understanding of the consumer’s tastes and preferences.” Mr Ashish
Bhargava, Head (Marketing), Personal and Nature Care, Marico Ltd, says, “We are investing in
consumer research and development to make that we have the best of consumer knowledge, the
best of products that are good in quality. We would like to give consumers a package, which is
world class. We also focus on innovation.”

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Q(b)Describe the concept of Product Life Cycle (PLC). Select any two brands in the recent
past where PLC concept was considered as tool for market development. Discuss.
Ans: First referenced in the 1920s, the product life cycle applies biological knowledge to products.
In nature, a seed is planted, begins to sprout, becomes an adult then eventually withers away and
dies. The product life cycle focuses on introduction (seed), growth (sprout), maturity (tree) and
decline (death) phases. Each phase has its own marketing mix strategy and implications regarding
product, price, distribution and promotion.

Life Cycle Length and Incubation Period

Sometimes, the life cycle concept applies to a brand or category of product. Fad items have a cycle
of a few months, but some categories, such as the gasoline automobile, will be around for at least a
century. During its incubation period, the product is developed and perfected. There are no sales
during this preparatory period, but the manufacturer prepares for the product’s introduction into
the marketplace.
Introduction Stage
You can expect sales to be low while you perform introductory marketing to create awareness. Your
primary goal during this stage is not to make a profit. Instead, you want to let customers know what
your product does, and why it is special. Typically, you will introduce one product at a time, keeping
the price either high for skim pricing--the most common--or low for penetration pricing. Initial
distribution is selective, but broadens gradually based on your distribution plan. Early efforts focus
on promotion and recognition. Until customers know about the product, they will not buy it.

Growth Stage
The growth stage is all about increasing sales and gaining consumer loyalty. Competitors usually
appear during the end of the growth phase. Increased advertising builds brand preferences.
Continuing to roll out new product features, improvements or upgrades keeps your customers
wanting more. If demand for your product remains high, you can respond by keeping the price at a
high level or reducing the price to broaden your market share. Distribution should be intensive
during this phase to get the product out to your entire consumer base.
Maturity Stage
If your product survives the first two stages, it will spend the most time in this phase. During the
maturity stage, you will seek to maintain market share and extend your product's life cycle.
Tweaking your product to make it unique helps it stand out from competitors. Keeping an eye on
the competition and pricing your product accordingly conserves market share, while avoiding price
wars. Widen distribution and offer incentives to sellers to keep your product on the shelf. Finally,
promoting brand loyalty and offering consumer incentives spurs customers to switch to your
brand.
Decline Stage
During the decline stage, demand for your product decreases along with both price and profit
margin. Now, you have three choices: maintain the product and hope competitors do not, harvest
the product and continue making profit as long as possible, or discontinue the product. Reducing
the number of products, and refreshing the packaging can make them look new again. Lowering

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prices helps liquidate inventory, but if your product continues to serve a niche market, maintaining
prices keeps profits coming in. Phasing out less successful distribution channels and focusing
promotions on brand image for future products is a good strategy.
Two brands in the recent past where PLC concept was considered as tool for market
development

i)Marketing developmentof Audio Music System introduction and maturity stage of the PLC
Anytime a company develops a new product or service, it needs to be aware that the product
and/or service will not last forever. This is important to recognize in the early stages of
development so that a firm can maximize their profits during the product's life cycle. Albeit, no
company can accurately predict the duration of a product or service, any product/service
progresses through four distinct phases. Each phase is associated with different costs, profits and
risks. Collectively, these phases are known as the Product Life Cycle (PLC) and are classified into:
Introduction, Growth, Maturation, and Decline.
Profit maximization will not occur until marginal revenue = marginal cost, this typically does not
occur until the start of the maturity phase.
Product Life Cycle
The introduction of the MP3 player a few years ago spawned a debate regarding sharing music and
the music industry felt (still feels) severely threatened by this technology. However, this has not
impacted the market or the consumer, in fact, there has been an influx of MP3 competitors on the
market recently. Significant marketing costs are incurred (just take a look at TV commercials
offering MP3 players) and increased distribution channels are used. The MP3 player is clearly still
in growth phase of the product life cycle. Sales are continuing to increase and new competitors are
still entering the market; however, with each new competitor entering the market, substantial
diversification has occurred. MP3 players now come with AM/FM radios, CDs, extra memory, etc.
Firms are beginning to focus on developing marketing strategies for specific individual segments
such as the business traveler versus the college student.

Make strategic musical choices

Audio branding is more than just making approachable, nice-sounding music. It is an

extensive strategy that objectifies music and voice to create guidelines for building the
brand’s own sound. Similarly, to visual guidelines, an audio brand absorbs a strategical and
cohesive approach to representing the values, mission and reason for a company’s
existence. This creates a visual interpretation, the mental image about the brand.

Since we experience brands with multiple senses, it makes sense to include sound into
consideration as well.

Give your audio theme a facelift

Selecting branding theme music doesn’t mean you are doomed to being a one-hit wonder.
Visual brand campaigns, for instance, are rarely 100 percent identical since fonts, colors

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and features are bound to evolve. Even though the appearance undergoes facelifts, the end
result still embodies “our brand.”

An effective audio strategy plays along these notes, as the audio theme also has to survive
the ravages of time and consumption. Instead of sticking to the same earworm on every
touch point or campaign, cultivating the song helps the audio brand become timeless yet
allows for variation in the musical context. For instance, the McDonalds audio logo has
appeared in various styles without losing the company’s audio identity.

Start from objective

Interpreting brand attributes into music and sound can be tricky since music is a subjective
experience. Some people enjoy acoustic singer/songwriter warmth while others connect
emotionally to pompous, upbeat pop tunes. It’s understandable that the range of individual
preferences can throw a wrench in the works of any decision-making process.

Audio branding strives to remove the difficulty of choice by objectifying sound, music and
voice and aligning their use and placement to represent brand values. Once the original
elements of a branded sound are there, personal preferences become relevant yet less
contingent because the analyses have provided the crème de la crème to choose from. The
only thing left for the decision makers is to choose the sweetest piece of the musical pie.

Fill this new world of audio friendly space

In the past, visual branding methods and guidelines have developed hand-in-hand with
new and therefore necessary channels that have emerged with time. The last such instance
occurred as the world shifted from under the domination of TV and print to the age of
smart phones and online streaming. The appearance of new platforms, channels and
mediums created a whole new void of visual content, which brands have since filled
commendably.

Now the ball of yarn has started to unravel with audio, too, as Amazon’s Alexa and Echo,
along with Google Assistant, are taking audio marketing to new, uncharted territories of
unheard-of customer experiences. In fact, the current trajectory of technology is lavishing
new voice- and sound-driven apps, devices and services at our feet on a daily basis.

We are living in a time where the growth of multisensory marketing with audio in the
forefront is giving the visual world a run for its money. As audio is liberating us from
staring at screens, it is becoming an integral part of our daily life. Consequently, crafting an
audio strategy will be the key to better interacting with customers in the coming future.

ii) Marketing development of Packaged fruit juices System introduction and maturity stage
of the PLC

There are a number of drinks, in the beverage industry. They are divided into various
branches. Talking about the fruit juice industry, they include natural juices and artificial
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juices or the man made ones. People have a number of tastes and they vary from person to
person.

The fruit juice industry has a number of companies. They include Vadilal, Jumpin, Kissan,
Real, Onjus, Kool Kokum, Frooti, Appy, Joly Jely, Yo Fruity, Noga, Midland, Goldcoin, Druk,
Tropicana etc. as the market is growing and so is the demand from the public, therefore it
compels the companies to bring out new and new products from time to time in order to
cater to the demands and requirements of the public.

Parle Agro, which introduced the concept of mango fruit juice, named it as ‘Frooti’. In the
beginning it was a huge success, with the company earning profits and at that point of time,
the company did not even have much of the competitors. It positioned itself as a drink for
kids.

But later on, as the market saw the entrance of new and new players and the market got
saturated with the number of companies providing fruit juices with a number of variants.
This made parle to reposition itself and change the perception of the public. It had to
change itself from drinks for kids to a drink for adults. For that it came out with a number
of marketing campaigns and other strategies in order to sustain itself in the market and
protect frooti from getting into the declining stage of product life cycle.

A tremendous number of food items like: beverages, alcohol, bread & biscuits, frozen food,
saffron, snacks, spices & seasonings etc. all are included under the category of Food &
Beverages. The food and beverage industry consists of high level of market segment, huge
variety of products, huge number of companies and many other characteristics. The food
and beverage industry represents a diverse set of products and processes: fresh, frozen,
chilled, and long shelf-life food and beverage products are manufactured, distributed,
imported, and marketed to consumers, retailers, catering services, and other
manufacturers. Food and beverage manufacturing facilities use large amounts of energy for
cooking, cooling, freezing, and cold storage and transport. The manufacture & export of
food & beverage has been constantly increasing since past few years. Food & beverage
industry has become a big factor and has been constantly adding to the revenues of the
countries.

While all beverages hydrate, few of them also provide various important nutrients that our
body needs. Few of them relax us, few energize us and few just satisfy our natural taste for
sweetness, maybe with or without calories. Some help us to perform our best, on the other
hand, some can help us in managing our health. Any beverage can be part of a weight-
maintenance diet. For many people who enjoy sweetened coffee drinks, soft drinks and
other beverages with calories, this requires using good judgment when it comes to how
much (portion size) and how often these beverages are consumed. Fortunately for those
who watch their weight, there is also a wide variety of low-calorie thirst-quenching
beverages, including waters, teas, coffee, and diet soft drinks.

India being the second largest market for fruits and vegetables in the world. The overall
and the total production of fruits and vegetables is estimated to be around 148.5 million
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tones, out of which around 48.5 million tones is accounted by fruits only and the rest for
vegetables which is around 100 million tones.

However, the fruit juice market has not been fully tapped because of poor infrastructure,
poor storage facilities, and highly unorganized market, chiefly constituted by road side
vendors. Consumers still prefer to buy juices from road side vendors even if the juices are
unhygienic.

The major growth drivers in fruit juice market are, increase in health consciousness among
consumers, increase in disposable incomes, and more sophisticated cocktail culture.

Q3.(a) Distinguish product from Brand. What are the various branding decisions that are
available for marketers with regard to brand name situation in the following:-
(i)New Product offering by the firm.

(ii)Premium/Niche variant of an existing product.

Ans:
Difference Between product from Brand

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The various branding decisions that are available for marketers with regard to New Product
offering by the firm

In line extension, the parent brand is used to brand a new product that targets a new
market segment within a product category currently served by the parent brand. A line
extension often involves a different flavor or ingredient variety, a different form or size, or
a different application for the brand (e.g., Head & Shoulders Dry Scalp shampoo). Most new
products are line extensions—typically 80 percent to 90 percent in any one year. Moreover,
many of the most successful new products, as rated by various sources, are extensions (e.g.,
Microsoft Xbox video game system, Apple iPod digital music player, and BMW mini
automobile).

Extensions can come in all forms. One well-known branding expert, identifies the following
seven general strategies for establishing a category—or what he calls a franchise—
extension

1. Introduce the same product in a different form. Examples: Ocean Spray Cranberry
Juice Cocktail and Jell-0 Pudding Pops
2. Introduce products that contain the brand’s distinctive taste, ingredient, or
component. Examples: Philadelphia cream cheese salad dressing and Haagen-Dazs
cream liqueur
3. Introduce companion products for the brand. Examples: Coleman camping
equipment and Duracell Durabeam flashlights
4. Introduce products relevant to the customer franchise of the brand. Examples:
Gerber insurance and Visa traveler’s checks
5. Introduce products that capitalize on the firm’s perceived expertise. Examples:
Honda lawn mowers and Canon photocopy machines
6. Introduce products that reflect the brand’s distinctive benefit, attribute, or feature.
Example: LysoFs “deodorizing” household cleaning products and Ivory’s “mild”
cleaning products
7. Introduce products that capitalize on the distinctive image or prestige of the brand.
Examples: Calvin Klein clothes and accessories and Porsche sunglasses

The various branding decisions that are available for marketers with regard
Premium/Niche variant of an existing product.
Branding consists of a set of complex branding decisions. Major brand strategy decisions involve
brand positioning, brand name selection, brand sponsorship and brand development.Niche
marketing is defined as channeling all marketing efforts towards one well-defined segment of the
population. There is one important thing to understand that ‘niche’ does not exist, but is created by
smart marketing techniques and identifying what the customer wants.
Niche marketing is a marketing tactic deployed to target a specific market segment which is unique.
Niche market is often created by identifying what a customer wants and this can be done if the
company knows what the customer needs and then tries to deliver a better solution to a problem
which was not presented by other firms. A niche market does not mean a small market, but it
involves specific target audience with a specialized offering. By doing so, the company becomes a

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market leader and it becomes possible for other firms to enter that particular segment. For
example, there are various cinema halls across India, but there are few which have recliner seats to
offer. Not everybody wants to watch a movie by paying 5x-6x times the cost of a normal ticket.
Hence, the target audience is very different and the hall is also only open at places where the
company feels that it would be able to tap into target audience especially in posh areas.
There are various advantages of niche marketing. One of the benefits of niche market is that there is
no or little competition under that segment. The company is virtually the market leader and enjoys
price monopoly. The another benefit is the strong relationship with the customers because of the
fact that the company operates in a small segment, the relationship between the company and the
brand becomes stronger which is also a key to customer loyalty. Niche businesses are often high
margin business. Customers do not mind paying a little extra because, they are only able to get that
service in that company or under its brand.
A niche market[a] is the subset of the market on which a specific product is focused. The market
niche defines the product features aimed at satisfying specific market needs, as well as the price
range, production quality and the demographics that it is intended to target. It is also a small
market segment.
Every product cannot be defined by its market niche. The niche market is highly specialized, and
aiming to survive among the competition from numerous super companies. Even established
companies create products for different niches; Hewlett-Packard has all-in-one machines for
printing, scanning and faxing targeted for the home office niche, while at the same time having
separate machines with one of these functions for big businesses.
In practice, product vendors and trade businesses are commonly referred to as mainstream
providers or narrow demographics niche market providers (colloquially shortened to just niche
market providers). Small capital providers usually opt for a niche market with narrow
demographics as a measure of increasing their financial gain margins.
The final product quality (low or high) is not dependent on the price elasticity of demand, but the
specific needs that the product is aimed to satisfy and, in some cases, aspects of brand recognition
(e.g. prestige, practicability, money saving, expensiveness, environmental conscience, or social
status).

Q(c)Discuss the major determinants of pricing and their limitations if any for the following:-
(i)FMCG Product
(ii)Home Appliances (Non electronic)

(iii)Cab Services for an organized player

Ans: The major determinants of pricing
(1) Cost of Production: The price of the product must be so fixed as to recover the full cost of
production from the price charged; otherwise all production activities will have to be stopped, in
the long-run.
(2) Profit-Margin Desired: The price of the product should include a reasonable (or targeted)
margin of profits; to ensure profitable selling.

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(3) Competitors’ Pricing: In the present-day competitive marketing world, no businessman could
ignore the pricing policies adopted by competitors; while doing the pricing his own product. In any
case, the price of the product to be charged by a manufacturer must not be substantially different
from the prices charged by competitors for similar types of products.
(4) Government’s Policy of Price-Control: Where, in particular cases, the Government has fixed
maximum retail prices; the pricing policy followed by a manufacturer must have to be in tune with
governmental regulations, in that regard.
(5) Consumers’ Buying Capacity: Since under the modern marketing concept, a product is made
according to the needs and preferences of target consumers; the pricing of the product must be
done in a manner so as to suit the pocket of the target consumers. In case otherwise, the product
may not appeal to them; and selling the product may become a ‘big’ problem.
(6) Product-Life Cycle Stage: While pricing a product, the manufacturer must pay attention to the
particular stage of the product-life cycle; which a product is passing through. For example, price of
the product must be kept low during introductory stage; it could be slightly raised at the growth
stage and finally at the saturation point, the price must be again lowered.
(7) Demand-Supply Conditions:
Whether the price of the product should be high or low; would much depend on the demand-
supply conditions relevant to the product in question. If demand is more than supply; even a high
price might work well. On the contrary, when demand is less than supply, only a low price could
attract the consumers.

(i)FMCG Product pricing

Some relief is on the way for fast-moving consumer goods( FMCG) companies, with prices of crude
oil, wheat, milk and palm oil either on the decline or stabilising. Even as flexible packaging prices —
which had become a new headache for FMCG companies — may come down on the back of stable
crude oil prices, the verdict on production costs is still unclear.
While palm oil prices have crashed by almost 40 per cent, wheat and milk rates are stable. Sugar
prices too, which were expected to climb further, have come down by 40 per cent in the past two
months, while wheat prices have stabilised.
While stable prices of raw materials have spelt relief for most FMCG companies, the industry is still
having a tough time in defining the future pricing strategy. Most companies have indicated that
input costs have hit their margins, while others maintained that if inflation continued unabated,
there would be further correction in prices.
Many FMCG companies have either raised prices or reduced the size of their products to combat the
rise in farm commodity prices and packaging costs, at a time when there is a perceptible economic
slowdown.
While the price hike has helped manufacturers deal with commodity-driven inflation, not much
could be done to tackle the rising cost of packaging.

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A crude oil derivative is used in packaging shampoos, while PET, a petroleum-based plastic product,
is employed in manufacturing hair oil bottles and packaged water bottles. Crude oil derivatives
account for almost 17 per cent of the total cost of corrugated boxes.
(ii)Home Appliances (Non electronic) Pricing
Many of our existing kitchen appliances don’t need electricity. There are also several
affordable options available, so you can really embrace retro living.
a) Coffee percolator. They make delicious coffee and are convenient for camping trips.
Percolators are easy to use, simply add water, ground coffee beans and a filter and leave it
on a heat source (a fire for non-electric living) for 5 – 10 minutes, depending on how strong
you like your coffee.
b) French pressFrench press: This is another coffee maker that is as easy to use as a
percolator. Simply boil water on a heat source (a gas stove or open fire), and pour over
coffee grounds. Let it steep for around five minutes and then push the plunger down to get
all the grounds to the bottom. Pour and serve.
c) Manual mixer. Twist the handle and watch the beaters whirl. It’s great for beating eggs,
whipping cream and making batter.
d) Hand flour mill. Got gluten issues? Then use one of these babies to turn oats, rice or
chickpeas into flour.
e) Dough maker. Of course you can knead dough by hand, but why not try a non-electric bread
maker to speed things up a bit. Simply add the ingredients, crank the mixture and enjoy
perfectly kneaded dough.
f) Food strainer. Many people have a food strainer occupying the back of the cupboard. It’s
great for making your own sauces, juices and jams. All you need do is cut up fruit, drop them
in and start turning. You don’t need to peel or core the fruit, as the strainer will do all the
separating for you.
g) Manual food processor. A twist of the handle turns multiple blades rapidly, producing the
same great results as an electric food processor. A number of blades allow you to cut, dice
and blend as desired.
h) Zeer clay pot fridge. You’re unlikely to have one of these lying around, but they’re great way
to keeping food cool. You put one terracotta pot inside another and fill the space between
with wet sand. As the water evaporates, it pulls heat from the pot inside and makes it cooler
than the air outside.
(iii)Cab Services for an organized player Pricing
The impact that the Cab aggregators created in the industry can be clearly noticed from News
papers, excusive television shows, live blogs and the various articles that appear almost daily. On a
high level if we look at the reason for such a bustle is that they provided a solution to the problem
that is lying unnoticed. Though people are facing the difficulty they are living with it since years. If
we try and recall how we used to book a cab, in Pre-aggregator era gives us memories calling all the
cab agencies one by one anxiously on a high demand day. And we have to wait till the cab arrives
with no proper information of the expected time of arrival, and the issues with the behavior of the
drivers, higher pricing, improper billing and finally we always experienced they took the longest
routes most of the times for their revenue. With the arrival of the Uber and Ola, all the primitive
issues seem solved but as we discuss further they again look as if all cropped up in a different way.

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However the new business model have given the end user peace of mind and a little luxury
especially to the Indian middle class who always aspired to own a car are not at least getting an
affordable cab ride . The increase of the smart phones in India and the higher usage of mobile
internet made the task easier for the aggregators. In fact this is one of the thought triggers that
made them to think innovatively to build the mobile application, where the users can book a cab
with just a finger touch. Based on the availability the cab will appear in few minutes usually. It is the
other way also now, the increased usage of the mobile app (Application referred as app generally)
to confirm the cab amplified the mobile internet usage to certain extent. Another reason for the
rapid development of the cab industry is the growth of the IT/ITES industry. The employees of the
companies especially working with the call centers log-in and log-out at odd times to support the
client business round the clock. To facilitate the employee commute between Home and office, also
from safety and security perspective the companies started providing cab facilities. Slowly with the
improved income levels and having got used to the comfort, these young employees started using
cabs mostly even for their personal travel. But the important aspect to note here is the Taxi
industry is still unorganized and the demand is growing. With this, looking at few workable
scenarios in hand, it is a clear business opportunity unaddressed from entrepreneur perspective
and at the same time service not up to the expected standards from customer standpoint, Cab
aggregators popped up as a sure shot solution.
Q4.(a)What is personal selling? Discuss the steps involved in the selling process for the
following:
(i)Software product for Banking Sector

(ii)Industrial Water Purifier.

Ans: Personal selling is also known as face-to-face selling in which one person who is the salesman
tries to convince the customer in buying a product. It is a promotional method by which the
salesperson uses his or her skills and abilities in an attempt to make a sale.
Personal selling is a face-to-face selling technique by which a salesperson uses his or her
interpersonal skills to persuade a customer in buying a particular product. The salesperson tries to
highlight various features of the product to convince the customer that it will only add value.
However, getting a customer to buy a product is not the motive behind personal selling every time.
Often companies try to follow this approach with customers to make them aware of a new product.
The company wants to spread awareness about the product for which it adopts a person-to-person
approach. This is because selling involves personal touch, a salesperson knows better how to pitch
a product to the potential customer. Personal selling can take place through two different channels
– through retail and through direct-to-consumer channel. Under the retail channel, a sales person
interacts with potential customers who come on their own to enquire about a product. The job of
the salesperson is to make sure that he understands the need of the customers and accordingly
shows various products that he keeps under that category. Under the direct channel, a salesperson
visits potential customers in an attempt to make them aware about a new product that the
company is launching or it may have a new offer which the customers may not get from the open
market.
i)The steps involved in the selling process for the Software product for Banking Sector
The process of selling involves the following steps:

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(i) Pre-Sale Preparations: A salesman has to serve the Bank and must identify a Bank’s problems
and prescribe a suitable solution. For this, a salesman must be familiar with the product
characteristics, the market, the organisation and the techniques of selling. Also he must know the
customer, himself and the company. He must know buying motives and buying behaviour of the
customers or prospects. He should be aware of current competition and market environment.
(ii) Prospecting: A salesman has to seek potential Bank s who are his prospects i.e., probable
buyers. A prospect has unsatisfied need, ability to buy and willingness to buy. Prospecting relates to
locating prospects. They can be through present customers, other salesman, phone directories, or
by direct cold canvassing. These prospects must, of course, be accessible to salesman. Thus,
prospecting is similar to the seeking function for the total marketing activities.
(iii) Pre-Approach: After locating a prospect, salesman should find out his needs and problems, his
preferences and behaviour etc. The product may have to be tailored to the specific requirement of
customer. On the basis of adequate information of the customer’s wants and desires, salesman can
prepare his plan of sales presentation or interview. The sales presentation should match to the
needs of the individual prospect. It should enable the salesman to handle his prospect smoothly
through the buying process, i.e., during, the sales talk.
(iv) Approach: The next step is approach where the salesman comes face to face with the prospect.
The approach has two parts, i.e., obtaining an interview, the first contact. He may use for this,
telephone, reference or an introduction from another customer; and his business card. The
salesman must be able to attract the prospect’s attention and get him interested in the product. It is
very important to avoid being dismissed before he is able to present his product.
(v) Sales Presentation: After the salesman has found a prospect and he has matched the customer’s
wants with his product, he becomes ready to make a sales presentation. The sales presentations is
closely related to the buying process of customers. The sales interview should generally go
according to AIDA theory (i.e., Attention, Interest, Desire and Action).
Attention is attracted and interest is gained. The salesman at this point can increase the interest
through smart and lively sales talk together with proper demonstration. Sometimes, visual aids are
used in sales demonstration. These are common for capital goods or machineries.
After explaining the product characteristics and expected benefits, the salesman should find out
customer’s reactions. The prospective customer’s all queries and doubts must be clearly answered.
The salesman should find the customer satisfied. A satisfied sales presentation must be clear,
complete, assertive about product’s superior performance and be able to gain the confidence of the
prospect.
(vi) Objections: At any stage of sales interview, the prospect may attempt to postpone the purchase
or resist purchase. A good salesman must consider an objection as an indication of how the
prospect’s mind is working. The clever salesman should welcome an objection, interpret it correctly
and will avoid it tactfully, without arguing with the customer.
(vii) Close: The close is the act of actually getting the prospects’ consent to buy. It is culmination of
the efforts so far made by the salesman and is the climax of the entire sales process.

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It is very important for salesman to be alert and find out the right moment for closing the deal. This
is the “Psychological or reaction movement”, at which the minds of salesman and prospect are
tuned together.
The salesman watches every sign of prospect willing to buy and shall apply “the close”. A sale is
never complete until the product is finally in the hands of a satisfied customer.
(viii) The Follow-up: This stage is the post sale contacts. The salesman after obtaining the order,
arranges for despatch and delivery of the product, facilitate grant of credit, reassure the customer
on the wisdom of his purchase decision, and minimize dissatisfaction, if any.
(ii) The steps involved in the selling process for the Industrial Water Purifier
Plan it: You need to start conducting research. There are a lot of things that go into starting a
successful pure drinking water business. First, where and on what scale do you intend to operate?
Are you going to be operating in your local neighborhood, town, city, or on a state or national level?
Since we’re talking about a small business here, we can forget about operating on the state or
national level for now. Depending on the scale of operations, you’ll need to buy equipment of
varying size and price. It’s best to start with your local neighborhood and start with a few essential
equipment. You can grow slowly from there as your market expands. Draw up a business plan
based on how much your equipment will cost as well as initial staffing costs. The smaller your range
of operations, the fewer staff you’ll need. You don’t have to allocate a significant part of your budget
to advertising for now as you can wing that later on. Spend as much time as you need on this step
because it is virtually the most important. Your business plan will act like a road map that guides
your business forward.
Licensing: You need to get all of the necessary licenses to get your business running. These include
business licenses from the local authorities, health permits from the health department, and tax
compliance certificates from the IRS. Your biggest concern here is health, since you’re selling a
consumable product. Make sure you visit the health department’s website for your local area to find
out all the necessary permits you need. You should also open a bank account for your business.
Secure Funding: You now need to secure funding for your startup. The exact amount of money you
will need depends on many different things, including the overheads associated with running your
physical headquarters, how much inventory you’ll buy at the beginning, and other expenses, such as
getting equipment for your office, training your employees, getting insurance for your company,
and so on.
As a small business, you have plenty of options available to you, as far as funding is concerned. One
way to go for factoring, where you sell our receivables in return for cash. This can be a great option
when you secure a large wholesale order for your water at the beginning but have no cash on hand
to service the order. You can also get a bank loan or you can tap into your savings, such as your
401(k).
Location: You need to pick out a physical base of operations for your business. Here what matters
is centrality. Your base of operations should be as close to the delivery points as possible. In the
pure drinking water business, distribution costs are typically much higher than packaging costs.
The product itself costs virtually nothing. You should therefore seek to minimize your transport
costs as much as possible by picking a central location.

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Hire Employees: You need to interview candidates, hire new employees, and train them in
preparation for the job. Your staff will be the face of your business so this is an important part of the
process. For starters, when you’re selecting the marketing and branding staff, go for younger
females between 22 and 40, as they will relate the easiest with your target demographic. A large
part of your customer base will consist of these women so it only makes sense to use the same
demographic to market to them. You have a lot more wiggle room when it comes to selecting
production and distribution staff. However, do not let the two mix, so as to discourage them from
colluding to form a competing business until you are well established.
Market: Find out as much about the state of the pure drinking water market as you can, and
whether or not there are any unexploited niches you can take advantage of. When it comes to the
pure drinking water business, your strategy will make or break you. Do you plan to invade another
brand’s market? Do you plan to differentiate your product? Differentiation can be achieved in a
variety of ways, such as having a catchier brand, or openly touting the health benefits of your water,
or being cheaper than the competition, or even something as simple as personally developing a
rapport with your customers, as the owner of your business. This last one is especially powerful if
you operate in a small area, where you can personally get to know all of your customers.
Advertising: You need to have a comprehensive advertising plan for your business. Start by
creating convincing promotional messages that speak of the benefits of your water, especially the
health benefits. You can buy ad space on the internet and ads in other forms of media, such as
television, radio, magazines and billboards. You don’t need to splash at the beginning. Just start
small, and increase your investment in whichever marketing channel has the best conversion.
Partnerships: Be a participant in health fairs that enable you to promote and sell your pure
drinking water. Also, foster partnerships with businesses, schools, grocery stores and retail outlets,
to become a vendor of your product. If you’re operating in a small area, focus on larger volume
water, such as the five liter and 20-liter bottles. Focus on getting wholesale deals with offices and
schools. You can keep the smaller bottles for restaurants and supermarkets, where you can form
partnerships to have them expose your product to their customers.
Q(c)What is sales forecasting? Select the most commonly used methods by the marketers
and the reasons for their choice.
Explain the role of distribution channel in the success of a brand.
Ans: Sales forecasting is the process of estimating future sales. Accurate sales forecasts enable
companies to make informed business decisions and predict short-term and long-term
performance. Companies can base their forecasts on past sales data, industry-wide comparisons,
and economic trends.
It is easier for established companies to predict future sales based on years of past business data.
Newly founded companies have to base their forecasts on less-verified information, such as market
research and competitive intelligence to forecast their future business.
Sales forecasting gives insight into how a company should manage its workforce, cash flow, and
resources. In addition to helping a company allocate its internal resources effectively, predictive
sales data is important for businesses when looking to acquire investment capital.
Sales forecasting allows companies to:

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  Predict achievable sales revenue;
 Efficiently allocate resources;
 Plan for future growth.

The most commonly used methods by the marketers and the reasons for their choice.
1. Short-term forecasting and

2. Long-term forecasting.
1. Short-Term Forecasting:
This type of forecasting can be defined when it covers a period of three months, six months or one
year. Generally, the last one is most preferred. The period is dependent upon the nature of business.
If the demand fluctuates from one month to another, forecasting may be done only for a short
period.
Purpose of Short-Term Forecasting:
1. To adopt suitable production policy so that the problem of overproduction and short
supply of raw material, machines etc. can be avoided.
2. To reduce the cost of raw materials, machinery etc.
3. To have proper control of inventory.

4. To set the sales targets.

5. To have proper controls.
6. To arrange the financial requirements in advance to meet the demand.

2. Long-Term Forecasting:
The forecasting that covers a period of 5, 10 and even 20 years. The period here also de­pends upon
the nature of business, but beyond 12 years, the future is assumed as uncertain. But in many
industries like ship-building, petroleum refinery, paper making industries, a long term forecasting
is needed as the total investment cost of equipment is quite high.
Purpose of Long-Term Forecasting:

1. To plan for the new unit of production or expansion of existing unit to meet the demand.
2. To plan the long-term financial requirements.
3. To train the personnel so that man-power requirement can be met in future.

Methods Used for Sales Forecasting:

Following are the methods generally employed for sales forecasting:
1. Survey of Buyers’ Views:
This is direct method for making forecasting for short-term, in which the customers are asked what
they are thinking to buy in near future say, in the coming year. In this method all the burden is with

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consumers, which may misjudge or mislead or may be uncertain about the quantity to be purchased
by them in near future.
2. Collective Opinion or Sales Force Polling:
In this method forecasting depends upon the salesman’s estimation for their respective areas,
because the sales-man are closest to the customers, hence can estimate more properly about the
consumers’ reaction about the product and their future requirements.
All the esti­mates of salesmen are consolidated to know the total estimate of the sales. This final
estimate then goes through severs checking to avoid undue imagination which is done many times
by the salesmen.
The revised estimates are then again examined in the light of factors like expected change in design,
change in prices, advertisements, competition, purchasing power of local people, employment,
population etc.
This method of collective opinion takes advantages of collective wisdom of salesmen, senior
executives like production manager, sales manager, marketing officials and managers.
3. Trend Projections:
Well-established firms which have considerable data on sales, these data are arranged in a
chronological order, known as ‘time series’. Thus ‘time series’ are analysed before making the
forecasts.
There is a common method known as ‘Project the trend’. In this method the trend line is projected
by some statistical method, generally, by least square method.
The time series forecasts are the demand characteristics over time. These time series data are
analysed for forecasting future activity levels. Time series data refer to a set of values of some
variables measured at the equally spaced time intervals such as monthly production lev­els,
demands in the market etc.
The role of distribution channel in the success of a brand
a) Distribution channels offer salesmanship: The distribution channels offer pivotal role of a
sales agent. They help in creating new products in market. They specialize in word of mouth
selling and promotion of products. They assure pre-sale and post-sale service to the
consumers. Since these channels are in direct and regular contact with the consumers, they
do salesmanship very well and at the same time provide true and valuable feedback to the
producers.
b) Distribution channels increase distributional efficiency: The intermediary channels ease the
sales process as they are in direct contact with the customers. They narrow down the gap
between producers and consumers both ecoomically and efficiently. These intermediaries
reduce the number of transactions involved in making products available from producers to
consumers. For instance, there are four producers who are targeting to sell their products
to four customers . If there is no distribution channel involved, then there will be sixteen
transactions involved. But if the producers use distribution channels, then the number of
transactions involved will be reduced to eight( four from producer to intermediary and four

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 from intermediary to customer), and thereby the transportation costs and efforts will also
be reduced.
c) The channels offer products in required assortments: Just like the producers have expertise
in manufacturing products, similarly the intermediaries have their own expertise. The
wholesalers specialize in moving and transferring products from various producers to
greater number of retailers. Similarly, the retailers have expertise in selling a wide
assortment of goods in less quantity to a greater number of final customers. Due to the
presence of distribution channels(wholesalers and retailers), it is possible for a consumer to
buy the required products at right time from a store conveniently located(geographically
closer) rather than ordering from a far located factory. Thus, these intermediaries break the
bulk and meet the less quantity demand of the customers.
d) They assist in product merchandising: It is actually the merchandising by intermediaries
which fastens the product movement from the retail shop desk to the customer’s basket.
When a customer goes to a retail shop, he may be fascinated by the attractive display of
some new product, may get curious about that new product, and he may switch over to that
new product leaving his regular product. Thus merchandising activities of the
intermediaries serve as a quiet seller at a retail store.
e) The channels assist in executing the price mechanism between the firm and the final
customers: The intermediaries help in reaching a price level which is acceptable both to the
producers as well to the consumers.
f) Distribution channels assist in stock holding: The intermediaries perform various other
functions like financing the products, storing the products, bearing of risks and providing
required warehouse space.

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