Collected and solved by Qazi Umer /~*1 Nation*~\ NOTE: No responsibility in case o any mista!e Q"estion No: #$ % &ar!

s: ' ( )escribe t*e c*aracteristics o early ma+ority c"stomers, Early Majority. They are very careful people and take time to adopt things. They tend to collect information about the change or the product, study carefully and then adopt on the basis of their merits. Q"estion No: '- % &ar!s: ' ( .syc*olo/ical pricin/ is /ainin/ importance day by day 0it* t*e c*an/in/ vie0s o c"stomers, 1n yo"r o0n sense 0*at are t*e di erent *ypot*esis t*at lead to t*e b"ildin/ t*e process o psyc*olo/ical pricin/2 .syc*olo/ical pricin/ or price endin/ is a marketing practice based on the theory that certain prices have a psychological impact. The retail prices are often expressed as "odd prices": a little less than a round number, e.g. $19.99 or $ .9!. The theory is this drives demand greater than "ould be expected if consumers "ere perfectly rational. #sychological pricing is one cause of price points. $t is a method to sho" price in less value figures to customers like if price is 1%% then you "ill not enter into & digit price you 'ust make it round about like 99.9%.

Q"estion No: '# % &ar!s: 3 ( 4ist any ive c*aracteristics o a /ood brand name, A /ood brand name should: e legally protectable e easy to !ronounce e easy to "emember e easy to "ecogni#e Attract Attention $uggest product enefits %e.g.: Easy&'ff( or suggest usage $uggest the company or product )mage *istinguish the product+s !ositioning relative to the competition. Q"estion No: #$ % &ar!s: ' ( 5*ile developin/ a ne0 prod"ct companies can "se many so"rces to /enerate ideas or ne0 prod"ct, E6plain *o0 competitors can be a /ood e6ternal idea so"rce2 (ompetitors can be an external source of idea generation. )or example competitors can be kept from seeing ne" product ideas generated by customers. *ou can get information and ideas about the customer response to the competitor+s product and you can kno" "hat customer is demanding in this "ay you can get the idea of ne" product. ,bserve

competitors ads and other communications to get clues about their ne" products. (ompetitors sales must be considered "hile decided "hether to develop the product or not.

Q"estion No: '- % &ar!s: ' ( 7etailin/ is t*e dead end o prod"ct distrib"tion, E6plain it2 -etailers are at the end of distribution chain as they sell to end users in this "ay they end the distribution of a product. They directly interact "ith the end users of the product and end the distribution process. Q"estion No: '1 % &ar!s: 3 ( )escribe prod"ct type o all t*e ollo0in/s 8 /ive lo/ical reasons to s"pport yo"r ans0er, 9 :"rnit"re 9 Cars 9 ;oap 9 &an/o 9 7ice :"rnit"re < .urable /oods: goods that survive multiple use occasions, often further subdivided into 0"hite goods1 2 3refrigerators and cookers, for example4 and 0bro"n goods1 3such as furniture, as "ell as electrical5electronic devices( Cars < specialty, (onsumer goods "ith uni6ue characteristics and brand identification. (ustomers make special efforts to buy such products. ;oap 7 convenience 8o" price and mass promotion, "idespread distribution in convenient locations. 9ango 7 perishable. . m not sure about this one -ice 7 (ommodities: undifferentiated goods 3e.g., "heat, gold, sugar4 Q"estion No: '# % &ar!s: 3 ( 5*at types o disco"nts are /iven by t*e company to t*e distrib"tors and retailers as trade promotion disco"nts2 Trade disco"nts %also called functional discounts( , These are payments to distribution channel members for performing some function . E-amples of these functions are .arehousing and shelf stocking. Trade discounts are often combined to include a series of functions, for e-ample /012/13 could indicate a /04 discount for .arehousing the product, an additional

2/4 discount for shipping the product, and an additional 34 discount for keeping the shelves stocked. Trade discounts are most fre5uent in industries .here retailers hold the majority of the po.er in the distribution channel %referred to as channel captains(.

Q"estion No: #$ % &ar!s: ' ( 5*y price 0ar is not bene icial or small companies2 #rice "as is state of intense competition over the price of product ,ne competitor reduce the price other "ill lo"er its price to match and then a cycle of price reduction starts. :hich can leads of selling of product belo" the cost. ;ormally smaller companies cannot compete and shut do"n. Typically the smaller more marginal firms .ill be unable to compete and .ill s*"t do0n. The remaining firms absorb the market share of the terminated ones. The main losers then, are the marginal firms and the #eople that invested in them.

Q"estion No: '- % &ar!s: ' ( E6plain *o0 &ar!eters can prolon/ t*e lives o many prod"cts in t*e mat"rity or decline sta/es o t*e .4C2 =lso *o0 can t*ey move t*ose prod"cts bac! to t*eir /ro0t* sta/e2 $n the decline stage of the marketing product development cycle, o"ners reduce or stop marketing efforts and expenses. The plan is to lo"er the marketing efforts "hile your competitors discontinue theirs. $f you keep selling the product "hile your competitor stops selling, then you can get the market share "hich your competitor left. Q"estion No: '1 % &ar!s: 3 ( )escribe >"antity disco"nts and its types, Q"antity disco"nts & These are price reductions given for large purchases. The rationale behind them is to obtain economies of scale and pass some %or all( of these savings on to the customer. )n some industries, buyer groups and co&ops have formed to take advantage of these discounts. 6enerally there are t.o types: Cumulative quantity discounts %also called accumulation discounts(. These are price reductions based on the 5uantity purchased over a set period of time. The e-pectation is that they .ill impose an implied s.itching cost and thereby bond the purchaser to the seller. Non-cumulative quantity discounts. These are price reductions based on the 5uantity of a single order. The e-pectation is that they .ill encourage larger orders, thus reducing billing, order filling, shipping, and sales personal e-penses.

Q"estion No: '# % &ar!s: 3 ( T*e irst step in t*e prod"ct development process is /eneration o ideas, )isc"ss 0*at are t*e internal and e6ternal so"rces o ideas2 5*y e6ternal so"rces are considered to be t*e more important t*an internal so"rce2 <very ne" product development starts "ith idea generation. $dea generation is process to produce large number of idea are produce. $t should be ongoing process. .uring idea one should not critici=e the ideas of others. )ollo"ing are fe" "ays for idea generation >rainstorming session: $n this "hole team participate and everyone can give any idea there "ill b no criticism on any idea. $dea can be obtained by basic research and ?:,T analysis $dea can be obtained from customers, -etailer+s @ )ocus groups Q"estion No: ?1 %&ar!s: 1-( 5*at is con+oint analysis2 5*y it is o ten "sed by mar!eters 0*ile introd"cin/ ne0 prod"ct2 (on'oint Analysis and -eason of :hy 9arketers Bse This :hile $ntroducing ;e" #roduct: $t is a statistical techni6ue hat is originated in mathematical psychology. $t is used in many of the social sciences and applied sciences like marketing, operations research and product management. The main ob'ective of con'oint analysis in marketing is to determine "hat combination of a limited number of attributes is mostly preferred by the public. $t is often used in testing customer acceptance of a ne" product designs and assessing the appeal of advertisements used in product positioning. There are fe" steps for conducting con'oint analysis. The basic steps are: 1. ?elect feature to be tested. . ?ho" these features combination to the potential customers. &. $nput data from a representative sample of potential customers into the statistical soft"are and select the con'oint analysis procedureC the soft"are "ill produce the utility functions for each feature. D. $ncorporate the most preferred features into a ne" product and advertisement. $t is very useful market analysis as "e can determine the customer needs and their interest their liking and disliking and "ill lead to success of the product to be launched. That is "hy it is mostly used by the marketers "hile introducing a ne" product.

Q"estion No: #$ % &ar!s: ' ( E6plain t*e psyc*olo/y be*ind a price o 7s$,$$ instead o 7s1-,--, The psychology in figures is that ho" customer perceives these figures if you set price as 1%.%% as it is in double digits so customer "ill think that price is high and if you sho" price in odd figures such as 9.99 the customer "ill perceive it as 9. Q"estion No: '- % &ar!s: ' ( &andatory labelin/ is still a debatable iss"e yet in t*e labelin/ o prod"ct, 5*at s*o"ld yo" say to in avor o mandatory labelin/2 Mandatory labeling is the re5uirement of consumer products to state their ingredients or components. Moral purchasing and avoidance of health problems like allergies are t.o things .hich are enabled by labeling. )t is mandated in most developed nations, and increasingly in developing nations, especially for food products. Mandatory labeling must be compulsory for eatables and medicines and ne. invented products so that user can kno. the side effects of the usage of the product and also some instructions that ho. to use the product. Q"estion No: '1 % &ar!s: 3 ( 4ist any ive c*aracteristics o a /ood brand name, A /ood brand name should: e legally protectable e easy to !ronounce e easy to "emember e easy to "ecogni#e Attract Attention $uggest product enefits %e.g.: Easy&'ff( or suggest usage $uggest the company or product )mage *istinguish the product+s !ositioning relative to the competition. Q"estion No: '# % &ar!s: 3 ( ;"ppose a ne0 deter/ent *as been introd"ced in t*e mar!et, 4ist do0n t*e sta/es a ter 0*ic* it 0ill enter in t*e c"stomer@s b"yin/ pre erence list2 1dea /eneration 1dea testin/ or mar!et test Tec*nical implementation .rice .lace .romotions

Q"estion No: ?1 % &ar!s: 3 ( ;"ppose No!ia is a mar!et leader in .a!istan and ;ony Ericsson is a mar!et

C*allen/er, 5*at principles ;ony Ericsson s*o"ld ollo0 to tar/et No!ia to /ain mar!et s*are2 &ar!et C*allen/er A market challenger is a firm in a strong, but not dominant position that is follo.ing an aggressive strategy of trying to gain market share. )t typically targets the industry leader %for e-ample, !epsi targets 7oke(, but it could also target smaller, more vulnerable competitors. The fundamental principles involved are: Assess the strength of the target competitor. 7onsider the amount of support that the target might muster from allies. 7hoose only one target at a time. 8ind a .eakness in the target99 !osition. Attack at this point. 7onsider ho. long it .ill take for the target to realign their resources so as to reinforce this .eak spot. :aunch the attack on as narro. a front as possible. ;hereas a defender must defend all their borders, an attacker has the advantage of being able to concentrate their forces at one place. :aunch the attack 5uickly, and then consolidate. $ome of the options open to a market challenger are: price discounts or price cutting line e-tensions introduce ne. products reduce product 5uality increase product 5uality improve service change distribution cost reductions intensify promotional activity Q"estion No: ?# % &ar!s: 3 ( 5*y is price considered to be one o t*e most le6ible elements o t*e mar!etin/ mi62 E6plain 0*at are t*e actors in l"encin/ t*e price o a prod"ct2 #rice is considered as most flexible element of the marketing mix because it can be increased or decreased even fixed for a particular product and increase or decrease in price have great impact on the demand of the product and demand have effect on the production. )actors that influence the price of a product are: #romotion #lace #roduct itself .emand of the product (ompetitors Time period 3in case of seasonal product4

#rice is considered the most flexible thing in marketing mix because it helps to achieve strategic as "ell as business goals and ob'ectives like 1E #rofitability 3to achieve business5financial ob'ectives4 E To ad'ust price according to customer purchasing po"er3are customers able to purchase at this price4 &E )or market positioning """.vuaskari.com )actors that can influence the price of any product: )ollo"ing factors influence the price decisions 1E 9arketing strategic ob'ectives E (urrent 9arket5economic situation &E (ustomer+s purchasing po"er DE (ost of the product FE The decision of "hat pricing strategy you "ant to adopt e.g. cost plus profit, premium price etc. GE The ob'ectives of the product or brand HE Available resources !E .istribution channels and their relative cost 3 9arks: F 4 AT*e !ey to c"stomer retention is c"stomer satis actionA, 5*y it is important or t*e mar!eters to retain t*e c"stomer2 $t is important to retain customers to capture more market share and increase sales, customers create value for the firm so firms have to retain existing customers by satisfying them. (ustomer life value must be considered. (ustomers are the key for the success of organi=ation regular customers create more "orth for the organi=ation. ?o that+s "hy it is important to retain the customers. Iuestion ;o: D 3 9arks: F 4 T*e irst step in t*e prod"ct development process is /eneration o ideas, )isc"ss 0*at t*e internal and e6ternal so"rces o ideas are, 5*y e6ternal so"rces are considered to t*e more important t*an internal so"rce2 1nternal so"rces: ;e" products ideas can come from several sources. They may come from internal sources marketing managers, researchers, sales personnel, engineers, or other organi=ational personnel. >rainstorming and incentives or re"ards for good ideas are typical intrafirm device for stimulation the development of products ideas. E6ternal so"rces: .irect observation of competitors1 products, customers1 evaluations of their product features, and the grapevine of suppliers and other "ho serve competitors often contributes ideas.

<xternal sources are more important as compare to internal sources as internal sources are only based on employees and external sources are based on information from market situation , external idea sources are highly valued in ne" product development literature. Q < .ac!a/in/ can increase t*e sales o prod"cts b"t it can act vice versa as 0ell, E6plain it 0it* e6amples. #ackaging is very important element in marketing mix. The ob'ectives and goals of packaging are many. 9ostly good packaging enhance product sale. >ut if packaging is not done "ith planning or care then it can sabotage all the effort. >ecause mostly packaging is done for the safety of the product and its transportation purposes. ?uppose if the box or carton in "hich a perishable product is enclosed it leaks then "hat "ill be the impression of that product on customers. $t "ill defame the product and company5brand. The ob'ectives that are gotten by packaging and labeling are 1E ?afety E Agglomeration &E $nformation DE Advertising through labeling FE 9arketing by attractive packaging Q < )isc"ss any ive eat"res o mar!et oriented irms (reating a spirit of openEmind in6uiryC (arefully analy=ing rivals+ actionsC 8istening to staff on the front linesC ?eeking out latent needsC Active scanning of the periphery of the marketC <ncouraging continuous experimentationJ .emonstrate leadership commitmentC Bnderstand the need for changeC 9obili=e commitment at all levelsC ?hape the visionC Align structures, systems and incentivesC and ?ustain the change The market driven organisation has increased capability for creating and maintaining relationships "ith customers: the market relating capability. ?uch a relationship orientation pervades all parts of the organisation+s mind set, values and norms. Q < )e ine *orizontal inte/ration and e6plain t*e possible advanta/es o *orizontal inte/ration2 Borizontal 1nte/ration $n microeconomics and strategic management, *orizontal inte/ration is a theory of o"nership and control. $t is a strategy used by a business or corporation that seeks to sell one type of product in numerous

markets. To get this market coverage, several small subsidiary companies are created. <ach markets the product to a different market segment or to a different geographical area. This is sometimes referred to as the hori=ontal integration of marketing. The hori=ontal integration of production is "here a firm has plants in several locations producing similar products. Kori=ontal integration in marketing is much more common than hori=ontal integration in production Q < Companies try increase t*eir li>"idity, 5*y companies "se cas* disco"nts2 5*at are di erent options available to o er cas* disco"nt2 1( Cas* disco"nts for prompt payment E These are intended to speed payment and thereby provide li6uidity to the firm. They are sometimes used as a promotional device. 2 51% net &% E this means the buyer must pay "ithin &% days, but "ill receive a L discount if they pay "ithin 1% days. 2&5H <,9 E this means the buyer must pay by the end of the month, but "ill receive a &L discount if they pay "ithin H days. 9arketing 9anagementE39MTEF%14 CU N (opyright Oirtual Bniversity of #akistan DD 2 51F net D% -,/ E this means the buyer must pay "ithin D% days of receipt of goods, but "ill receive a L discount if paid in 1F days.