Q1

Introduction
There are two kinds of external marketing environments; micro and macro. These
environmental factors are beyond the control of marketers but they still influence the decisions
made when creating a strategic marketing strategy. Macro environmental elements are
encompassing; they include such concepts as demographics, economics, social and cultural
factors, political and legal factors, technology and the natural environment; micro
environmental forces are those that are distinct and individual, such as customers, producers,
marketing intermediaries, public entities and the company itself.

Market &
Market
Intermediaries
Suppliers Competitors

Micro
Customer &
Environmental The Public
Consumer
Factors

Natural Technological
Physical Forces Factors

Economic Political and

Factor Leagal Forces

Macro Social and

Demographic
Environmental Cultural
forces
Factors Factors
Micro and Macro environmental factors

1. Suppliers - Sourcing goods used in production or resale and distributing the inventory to
customers are important as well. Manufacturers rely on materials suppliers and resale
companies rely on manufacturers or wholesalers to transport goods. The supplier holds the
power when they are the only or the largest supplier of their goods; the buyer is not vital to
the supplier’s business; the supplier’s product is a core part of the buyer’s finished product
and/or business. Suppliers can control the success of the business when they hold the power.
Uncertainty regarding the supply or other supply constraints often compels companies to
maintain high inventories causing cost increases. It has been pointed out that factories in
India maintain indigenous stocks of 3-4 months and imported stocks of 9 months as against
an average of a few hours to two weeks in Japan.
2. Competitors - The competitive environment consists of certain basic things, which every
firm has to take into consideration. No company, howsoever large it may be, enjoys
monopoly. In the original business world, a company encounters various forms of
competition. The most common competition, which a company’s product now faces, is from
differentiated products of other companies. Those who are already selling pickles and spices
in international market as M/s Tikhalal’s market competition, and the way they sell needs
to be taken into account. How does their price and product differentiation affect M/s
Tikhalal? How can M/s Tikhalal leverage this to reap better results and get ahead of them?
3. The customer & the Consumer - There are five types of customer markets - consumer market
(B2C), business market (B2B), reseller market, government market, and international
market; and each has different characteristics that must be focused on. Their reasons for
buying the product will play a large role in how you approach the marketing of your products
and services to them. In simple words, an organization cannot survive without customers.
A consumer, on the other hand, is the ultimate user of the product/service. A successful
business keeps a close watch on both customers and consumers of its products/services. M/s
Tikhalal must monitor and track any changes in tastes and preferences of the consumer along
with changes in the buying habits of the customer. Marketing intermediaries are vital links
between the company and the final consumers.
4. Market & Market Intermediaries - The market is much more than the sum of all the
customers. The organization must study the market in terms of its actual size, the potential
for growth, and its attractiveness. Some important issues are the cost structure of market,
price sensitivity of the market, technological structure of the market, the existing distribution
system of the market, the maturity of the market.
The marketing intermediaries include intermediaries such as
i. Agents and merchants who - help the company find customers or close sales with them‖,
ii. Physical distribution firms which - assist the company in stocking and moving goods
form their origin to their destination such as warehouses and transportation firms;
iii. Marketing service agencies which - assist the company in targeting and promoting its
products to the right markets such as advertising agencies,
iv. Marketing research firms,
v. Media firms and consulting firms
vi. Financial intermediaries, which - finance marketing activities and insure business risks
 Market intermediaries are the major determining force in business. Most customers are
unaware of the manufacturer of the products they buy since they approach retailers,
departmental store, chain stores or online stores for their purchases.
5. The Public - It is wrong to think that all publics are threats to business. Some of the actions
of the publics may cause problems for companies. However, some publics are an opportunity
for the business. Fruitful cooperation between a company and the local publics may be
established for the mutual benefit of the company and the local community. Not just M/s
Tikhalal but also every organisation has a duty to satisfy the public. Any actions of company
must be considered from the angle of the public and how they are affected. The public have
the power to help reach company’s goals; just as they can also prevent you from achieving
them.
6. Demographic forces - Different market segments are typically impacted by common
demographic forces, including
a. Country/region age,
b. Ethnicity,
c. Education level,
d. Household lifestyle,
e. Cultural characteristics and,
f. Movements.
Demography refers to the study of human populations. Why are people important? Because,
overall, their needs is the reason for businesses to exist. In other words, people are the
driving force for the development of markets.
7. Economic factors - The economic environment can influence both the organisation’s
production and the consumer’s decision-making process. M/s Tikhala or any other company
should never start exporting to a country before having examined how much people will be
able to spend. Important criteria are
a. GDP,
b. GDP real growth rate,
c. GNI,
d. Import Duty rate and sales tax / VAT,
e. Unemployment,
f. Inflation,
g. Disposable personal income, and
h. Spending patterns.
8. Natural/physical forces - The Earth’s renewal of its natural resources such as forests,
agricultural products, marine products, etc. must be taken into account. There are also the
natural non-renewable resources such as oil, coal, minerals, etc. that may also affect the
organisation’s production. Important trends in the ecological environment are the growing
shortage of raw materials and the care for renewable resources. In addition, increased
pollution, but also increased intervention of government in natural resource management is
an issue.
9. Technological factors - The skills and knowledge applied to the production of Pickles and
Spices, and the technology and materials needed for production of products and services can
also influence the smooth running of the business and must be considered.
10. Political and legal forces - Sound marketing decisions should always take into account
political and/or legal developments relating to the organisation and its markets.
11. Social and cultural forces - The impact the products and services the organisation brings to
market have on society must be considered. Any elements of the production process or any
products/services that are harmful to society should be eliminated to show the organisation
is taking social responsibility. A recent example of this is the environment and how many
sectors are being forced to review their products and services in order to become more
environmentally friendly.

Conclusion

Businesses cannot always control Micro Environment factors but they should endeavour to
manage them along with Macro Environment and Internal Environment factors. Micro
Environment influences may demand urgent attention, but Macro Environment influences can
have a more profound long-term effect on an organization’s marketing. In marketing
Environment, a firm creates its value through interaction with other individuals and
organization to make up marketing environment. We cannot divide marketing environment
into distinct areas. A good firm seeks to understand the complex linkage between different
parts of marketing environment.

Q2

Introduction

Most of the traditional ways cost money and not everyone can buy television advertisements
when they are just going online. Online promotion is the process of using the internet's various
platforms to promote a brand. It is essential if M/s Tikhalal want to get brand exposure at a
reasonable cost. Social media can be used for a variety of purposes. Whether it’s social selling,
content marketing or customer support, social media will give M/s Thikhalal the perfect
opportunity to reach the target audience and build the brand. However, with so many different
platforms available and heavy competition on all of them, it can be difficult to set the brand
apart and carve out the place on Twitter, Instagram and Facebook.

it’s easy to understand why business and consumer marketers nearly unanimously believe that
social media is crucial to building a brand. Here are two important facts to know:

a. Brand awareness is cited as the top priority for marketers in both business-to-business
and business-to-consumer fields.
b. Nearly 2.1 billion people (just over two thirds of active Internet users) have social media
accounts.

Various ways to promote brand on social media

1. Being consistent on social media

Building a brand doesn’t happen overnight; it takes time and dedication. According to Brand
Channel, it took 15 years for Nike to cement its brand by focusing on maintaining a ‘360-
degree delivery,’ ensure its brand was consistent across all products, advertising, customer
service and packaging.
2. Choose the right Network

For M/s Thikhalal Tumblr probably would be the best option. Tumblr’s primary demographic
is teens and people in their early twenties. A better option would also be LinkedIn since it’s a
B2B network that attracts business owners. If an organization is not gaining any traction on
some of the social media platforms, it may not entirely be its fault. With hundreds of social
media apps out there, and new ones popping up every day, it’s tempting to jump into all of
them. However, every social network might not be the right fit for the company.

3. A logo that display a brand philosophy and identity

Just like an individual personal identity makes him uniquely him, a brand identity is the special
sauce of a business that sets it apart. Brand identity is the collection of all elements that a
company creates to portray the right image to its consumer. A successful logo is the anchor of
a brand and its design should represent a brand’s identity and philosophy. When designing a
logo, it’s important point to consider is what the brand represents, and what the brand doesn’t
represent.

4. Don’t Overlook Visual Branding

One brand that does this very well is Coca-Cola. When we look at the company’s Facebook,
Twitter and Instagram profiles, we will notice the consistency in colour and design. Branding
must be consistent across all channels. This will help people immediately recognize the
company no matter which site or app they’re using. Colour can be used to give a brand
personality and meaning as the graphic above shows and using colours with impact and
meaning can help a brand appeal to its target audience. As in the first point, be consistent with
colour across all media platforms - online and offline - to ensure a consistent, unified and
professional look.

5. Knowing and developing the voice and style of a brand

The product or service plus the demographics of the target audience will determine the voice
and style of a brand on social media. Imagine the brand as a person and consider what type of
language it would use and what types of things it would share online. Brand’s personality
should be reflected in social media posts. That means developing a social media voice. This is
the way brand communicates in Tweets, Facebook posts and Snaps. A young and hip brand
might get away with more slang, or a niche brand may use more acronyms and industry-specific
language. To find the social media voice, consider these three main elements: company culture,
audience, authenticity. The use of hashtags like #IWILL in social media posts shows that the
company’s social media voice is a direct reflection of its culture. Speaking in a way that the
audience connects with is very important. That could include using certain references that are
popular in the target market. Whatever social media voice develops into, it is also important to
make sure it’s authentic to the brand. Trying to sound a certain way just to fit in can backfire.

Conclusion

The best way to evaluate the importance of applying social media in marketing is to realize the
importance of social media in everyday life of people who are likely to become your customers.
Social media marketing has become a necessity, one that is imposed to the business by the
overall presence and impact social networks have on the users. We have to admit that social
networks are a new dimension of reality that has become a part of the business world as well.
Over 90% marketers report they are or will be using social networks for business, while over
60% of them claim to have acquired new customers over social networks.

The findings published by business professional and marketers support the fact that businesses
can have a lot of benefits from using social networks, which is why implementation of those
has become a part of business practice. This is why social media marketing is no longer
considered to be on probation, but instead it has become an important part of the business
world.

Q3 a

Introduction

Market segmentation is the practice of dividing the target market into approachable groups.
Market segmentation creates subsets of a market based on demographics, needs, priorities,
common interests, and other psychographic or behavioural criteria used to better understand
the target audience. Market segmentation is the activity of dividing a broad consumer or
business market, normally consisting of existing and potential customers, into sub-groups
of consumers based on some type of shared characteristics.

Analysis

M/s Tikhalal doesn’t need to do demographic market segmentation because they do not target
age group or income group, because the product like the papad is for all the masses and classes.
It is a product which is consumed in each and every house as it is affordable to all. The papad
can be available in many denominations like from ₹10 to ₹250 depending on the weight and
size of the papad and packaging.

The market is segmented according to geographic criteria—nations, states, regions, countries,

cities, neighbourhoods, or zip codes. To meet our vision of reaching to small villages can be
achieved by targeting small shops in rural areas (Local Marketing) where the product can be
made available in ready to eat, targeting small age group customers.

Segmentation according to occasions is based on the arising of special need and desires in
consumers at various occasions. For example, papads are liked much during Diwali and Holi.
Another type of occasional market segment are people preparing for their wedding or a funeral,
occasions that only occurs a few times in a person’s lifetime but happens so often in a large
population that it can be considered a market segment.

Psychographics is the science of using psychology and demographics to better understand

consumers. Psychographic segmentation: consumers are divided according to their lifestyle,
personality, values and social class. Consumers within the same demographic group can exhibit
very different psychographic profiles.
In behavioral segmentation, consumers are divided into groups according to their knowledge
of, attitude towards, use of or response to a product. It is actually based on the behavior of the
consumer.

Market segmenting is dividing the market into groups of individual markets with similar wants
or needs that a company divides into distinct groups which have distinct needs, wants, behavior
or which might want different products and services. Broadly speaking, markets can be divided
according to a number of general criteria, such as by an industry; public versus private. The
requirement of a papad by a Boys Hostel will be different than that of a Restaurant.

Conclusion
Market Segmentation allows an organization to separating a market into distinct groups of
potential consumers who share common characteristics and interest and who are likely to be
attracted to particular products or services. Segmentation allow to develop products and plans
which fits the customers more efficiently. Market segmentation is a marketing approach that
encompasses the identification of different groups of customers

Market segmentation allows for customer retention and addresses the needs of the consumer in
an efficient approach. The basic approach to retention-based segmentation is that a company
tags each of its active customers with three values:

• Is this customer at high risk of cancelling the company's service?

• Is this customer worth retaining?
• What retention tactics should be used to retain this customer?

Q3 b

Introduction
Every businessman wants to increase the sale of goods that he deals in. He can adopt several
ways for that purpose. In the neighbouring markets, notices of ‘winter sale’, ‘summer sale’,
‘trade fairs’, ‘discount upto 50%’, and many other schemes to attract customers to buy certain
products. All these incentives, may be, in form of free samples, gifts, discount coupons,
demonstrations, shows, contest etc. all these measures normally motivate the customers to buy
more and thus increase sales of the product. This approach of selling goods is known as “Sales
Promotion”. This approach of increasing sale of a product is quite different from personal
selling and advertising.
As everyone knows that high profits result from increased sales, that's why, all businesses
engage in some innovative promotion techniques, from time to time, to increase awareness of
their products and to boost the sales. These efforts help in building the company's brand value
and promote customer loyalty too.
Various sales promotion techniques
1. Free Samples
Distributing Papads as a free sample can be an effective device to consumers to increase their
interest in the product. They are also given to introduce a new product and expand the market.
The objective is to allow the customer to use the product and make a purchase decision. The
sample that the customer gets could make or break the deal, and the results will have long-term
implications.
2. Demonstration or Trade shows
It is a promotional tool to attract the attention of the consumers. When products are complex
and of a technical nature, demonstration is necessary, e.g. different variety of papad with may
be of different size of taste has to be prepared in particular manner.
Trade shows, also known as trade fairs or expos, are events collectively organized by multiple
companies or industrial associations. Companies from a particular industry come together to
display the services and products they offer.
3. Price reductions, money refund offers or discounts
The price of the product is reduced to compete with the price reductions offered by other
suppliers. Apart from the regular discount, special discounts are also allowed to the dealers for
a specified quantity of purchase. This special discount is over and above the regular discount.
For instance, a regular discount of ₹10 per packet of papad is allowed; and if the customer
purchases 100 packets at a time, he will be given a discount of ₹12 per packet, i.e., ₹200 extra
for the purchase of 100 packets.
A coupon is a ticket or document that can be exchanged for a financial discount or rebate when
purchasing a product. Coupons offer instantly redeemable savings on certain products. That
means that consumers get an instant reduction on the price at the point of purchase.
4. Social Media and Influencer Marketing
Influencer Marketing is a hybrid of old and new marketing tools, taking the idea of the celebrity
endorsement and placing it into a modern-day content-driven marketing campaign. The main
difference is that the results of the campaign are collaborations between brands and influencers.
Social media and the continued popularity of blogging and v-logging (video blogging) have
created a new generation of influence marketers who regularly promote products in a particular
field to their established audience.
5. Digital Marketing
Digital marketing folds directly into other promotional strategies by providing a different
avenue, online display ads or direct marketing, to advertise other consumer-centric efforts.
Promote the event using strategic keywords on the major search engines or purchase display
ads on popular niche websites using ad networks.
Digital marketing is the marketing of products or services using digital technologies, mainly
on the Internet, but also including mobile phones, display advertising, and any other digital
medium.
Conclusion
Different Sales Promotional schemes changes with change in income, Gender and education.
Female are more deal prone than male. Income and education affect brand equity, female have
rated highly for brand loyalty and Brand awareness while male have rated highly to perceived
quality. Cash discount is preferred to free gifts as sales promotion schemes by Middle class
consumers. The female considers Cash discount as best sales promotion scheme. Media are not
equally preferred. Television is the most preferred than all others and Point of Purchase
material is least preferred. Conclusions may be the popularity of certain products or services,
what the primary customer base is, and if the profit margin is helping or hurting the business.