MB0046 Set2

NB - Naiketing Nanagement set- Page
Master of Business Administration - MBA Semester 2

MB0046 - Marketing Management - 4 Credits
(Book ID: B1135)
Assignment Set- 2
60 Marks

Note: Each question carries 10 Marks. Answer all the questions.

Q.1 Highlight the importance oI Distribution channel and marketing intermediaries in carrying
out the marketing Iunction. (10 marks)

Q.2 a. Explain the diIIerent product mix pricing strategies. (6 marks)
b. Give a note on marketing concepts. (4 marks)

Q.3 a. What are the Ieatures oI business markets? (5 marks)
b. Write a short note on product line and product mix. (5 marks)

Q.4. a. Select any deodorant brand and evaluate its positioning strengths or weakness in terms oI
attributes, beneIits, values, brand name and brand equity. (6 marks)
b. You are a research expert in the Iield oI marketing Iootwear products. What are the
various research approaches you would consider beIore making a consumer survey
regarding Iootwear? (4 marks)

Q. 5 a. What advice would you give a company that has Iacing bad publicity? What steps would
you tell the company to improve its reputation? (7 marks)
b. As a brand manager, what are the ways in which you will select a brand name Ior your
product- watches and how will you position it in the market? (3 marks)

Q. 6 a. What is MIS? What are its beneIits? (4 marks)
b. How is rural marketing diIIerent Irom urban markets? (6 marks)


..Eiqbliqbt tbe importonce of Bistribution cbonnel onJ
morketinq intermeJiories in corryinq out tbe morketinq function.
Ans:-

|arketIng channels are a set of Independent organIzatIons comprIsIng of the marketIng
IntermedIarIes who are Involved In the dIstrIbutIon of the goods or servIces from the
factory to the consumptIon poInts at the rIght tIme or even before the tIme.

For example, HaldIram, a company whIch produces snacks, chats and sweets have two
manufacturIng locatIons at 0elhI and Nagpur. The products from 0elhI wIll be sent to
25 CEF agents. These CEF agents dIstrIbute the goods to 700 dIstrIbutors, who In turn
sell to 0.4 mIllIon retaIl outlets. n the same way, goods reaches to 0.2 mIllIon
retaIlers from Nagpur plant vIa 25 CEF's and J75 dIstrIbutors. Consumer buys HaldIram
snacks throughout ndIa through these 0.6 mIllIon retaIlers.

|arketIng channels wIll have marketIng IntermedIarIes such as the retaIlers,
wholesalers, agents, brokers, travellIng agents, etc. Some companIes do not use these
channels. They dIrectly market theIr products to consumers. For example, 0ell
computers ask Its customers to logIn to the websIte, confIgure theIr product, and
order the same on the Internet. Then a general questIon arIses as to why many
companIes use marketIng channels and some do not. n order to answer thIs questIon,
we need to understand the functIons of marketIng channels and how they are more
benefIcIal than dIrect marketIng.

FunctIons of marketIng channeIs
1. Helps In PhysIcal dIstrIbutIon: TransportIng goods and storIng them In the assIgned
warehouses or godowns.
2. Promotes CommunIcatIon: |arketIng IntermedIarIes promote the company's
products. Here channel member provIdes the InformatIon regardIng the products and
pushes It to the customers.
J. ProvIdes nformatIon: FetaIlers and wholesalers collect the InformatIon or
feedbacks from the customers and provIde the same to the company or manufacturer.

4. Plays a key role In TItle transformIng: |arketIng IntermedIarIes purchase the goods
from the company and transform the tItle of goods or ownershIp to the next channel
IntermedIary or customer.
5. Supports FelatIonshIp management: Here marketIng IntermedIarIes try to
understand the needs of consumers, try to match hIs needs and satIsfy them.
The delIvery of goods and servIces from producers to theIr ultImate consumers or users
Includes many dIfferent actIvItIes. These dIfferent actIvItIes are known as marketIng
functIons. 0Ifferent thInkers have descrIbed these functIons In dIfferent ways.

Some of the most Important functIons of marketIng are brIefly dIscussed below:

1. harketIng Pesearch and InformatIon hanagement
|arketers need to take decIsIons scIentIfIcally. |arketIng research functIon Is
concerned wIth gatherIng, analyzIng and InterpretIng data In a systematIc and
scIentIfIc manner. The types of market InformatIon could be analysIs of market sIze
and characterIstIcs, consumer tastes and preferences and changes In them from tIme
to tIme, channels of dIstrIbutIon and communIcatIon and theIr effectIveness,
economIc, socIal, polItIcal and technologIcal envIronment and changes thereIn. A
company can procure such InformatIon from specIalIzed market research agencIes,
government or can decIde to collect themselves.

2. AdvertIsIng and SaIes PromotIon - AdvertIsIng Is a mass medIa tool used to Inform,
persuade or remInd customers about products or servIces. t Is an Impersonal form of
communIcatIon targeted at a chosen group through paId space or tIme. Sales
PromotIon Is a shortterm IncentIve gIven to customers or IntermedIarIes to promote
sales. t supplements advertIsIng and personal sellIng and can be used at the tIme of
launchIng a new product or even durIng Its maturIty perIod.

3. Product PIannIng and hanagement - A |arketer should IdentIfy the needs and
wants of consumers, develop suItable products / servIces and make them avaIlable.
|arketer Is also requIred to maIntaIn the product and Its varIatIons In sIze, weIght,
package and prIce range accordIng to the changIng needs and requIrements of hIs
customers. nformatIon avaIlable through |arket Fesearch helps product management
In takIng approprIate decIsIons whIle plannIng the marketIng efforts.

. SeIIIng - ThIs functIon of marketIng Is concerned wIth transferrIng of products to
the customer. An Important part of thIs functIon Is organIzIng sales force and
managIng theIr actIvItIes. Sales force management Includes recruItment, traInIng,
supervIsIon, compensatIon and evaluatIon of salesmen. They need to be assIgned
targets and terrItorIes where they can operate. The salesmen Interact wIth
prospectIve purchasers facetoface In order to sell the goods. The purchaser may be
end customer or an IntermedIary, such as a retaIler or a dealer.
5. PhysIcaI 0IstrIbutIon - |ovIng and handlIng of products from factory to consumers
come under thIs functIon. Drder processIng, Inventory, management, warehousIng and
transportatIon are the key actIvItIes In the physIcal dIstrIbutIon system.
6. PrIcIng - ThIs Is perhaps the most Important decIsIon taken by marketer, as It Is the
only revenue fetchIng functIon and success and faIlure of the product may depend
upon thIs decIsIon. Therefore, the decIsIon regardIng how much to charge should be
taken such that the prIce Is acceptable to the prospectIve buyers and at the same tIme
fetches profIts for the company. WhIle decIdIng on the prIce, the factors to be
consIdered are competItIon, competItIve prIces, companys marketIng polIcy,
government polIcy, and the buyIng capacIty of target market etc.

|arketIng channels are a set of Independent organIzatIons comprIsIng of the marketIng
IntermedIarIes who are Involved In the dIstrIbutIon of the goods or servIces from the
factory to the consumptIon poInts at the rIght tIme or even before the tIme.

For example, HaldIram, a company whIch produces snacks, chats and sweets have two
manufacturIng locatIons at 0elhI and Nagpur. The products from 0elhI wIll be sent to
25 CEF agents. These CEF agents dIstrIbute the goods to 700 dIstrIbutors, who In turn
sell to 0.4 mIllIon retaIl outlets. n the same way, goods reaches to 0.2 mIllIon
retaIlers from Nagpur plant vIa 25 CEF's and J75 dIstrIbutors. Consumer buys HaldIram
snacks throughout ndIa through these 0.6 mIllIon retaIlers.

|arketIng channels wIll have marketIng IntermedIarIes such as the retaIlers,
wholesalers, agents, brokers, travellIng agents, etc. Some companIes do not use these
channels. They dIrectly market theIr products to consumers. For example, 0ell
computers ask Its customers to logIn to the websIte, confIgure theIr product, and

order the same on the Internet. Then a general questIon arIses as to why many
companIes use marketIng channels and some do not. n order to answer thIs questIon,
we need to understand the functIons of marketIng channels and how they are more
benefIcIal than dIrect marketIng.
|arketers should consIder varIous factors before decIdIng the partIcular type of
channel. t may be organIzatIonal or competItIve factors. The type of goods to be
transported and stored wIll decIde the length and IntensIty of channel. To decIde on
the partIcular channels, marketer wIll have to take Into account the followIng factors.
1. 0nderstcndny the customer pro]le:
PurchasIng habIts dIffer from IndIvIdual to IndIvIdual. ndIvIduals who face
shortage of tIme would lIke to purchase on the net (dIrect channel) and those
who have abundant tIme would lIke to go through the shoppIng experIence.
Some of them would lIke to have varIety of goods, whIle others want unIque or
specIalIzed products. Hence marketers should understand who are hIs
customers: How do they purchase and how often they purchase: For example,
customers don't lIke to travel half a kIlometer to purchase a shampoo sachet,
but they don't mInd travellIng two kIlometers whIle purchasIng durable goods.

2. 0etermne the ob]ectves on whch chcnnel s to be developed.
Feach:
Company would lIke to make the goods avaIlable In most of the retaIl outlets. So It,
wIll adopt IntensIve dIstrIbutIon channel.

ProfItabIlIty:
Company wants to reduce the cost In the channels and enhance theIr profItabIlIty. t
wIll restructure the channel to optImum level so that It can reduce the cost and
Increase the profIt.

0IfferentIatIon:
Company posItIons theIr products dIfferently. When most of the Industry players follow
conventIonal system, company goes wIth new format of channels. For example, all
computer manufacturers were adoptIng dealerretaIler channel to sell theIr products,
but 0ell started sellIng Its product on the Internet.


J. ldent]y type o] chcnnel members:
Dnce the objectIves are set on the basIs of company's polIcIes, It wIll analyze
whIch types of channels are most suItable. |erchants, agents and resellers are
some IntermedIarIes Involved In the dIstrIbutIon. |erchants are those who buy
the product, take tItle and resell the merchandIse. Agents wIll fInd the
customers, negotIate wIth them, but do not take the tItle of the product.
FacIlItators are the people who aId the dIstrIbutIon but do not negotIate or
take the tItle of the product.

4. 0etermnny ntensty o] dstrbuton:
ntensIty of dIstrIbutIon means how many mIddlemen wIll be used at the
wholesale and retaIl levels In a partIcular terrItory. f the number of
IntermedIarIes Is more, then the cost of the channel wIll Increase. However, If
the number of IntermedIarIes Is less, then company wIll not be able to meet all
target customers. Therefore company should adopt optImum number of
IntermedIarIes. Dn the basIs of how many IntermedIarIes are requIred,
company can adopt any one of the followIng strategIes.

ntensIve dIstrIbutIon:
A strategy In whIch company stocks goods In more number of outlets. The IntentIon Is
to make the goods avaIlable near to the customer. For example, you can fInd ParleC
glucose bIscuIts avaIlable In almost all the retaIl outlets In rural and urban areas.

SelectIve dIstrIbutIon:
A strategy In whIch company stocks goods In lImIted number of retaIl outlets. For
example, televIsIons are sold only In selected retaIl outlets. T7s cannot be sold lIke
toothpaste. DnIda T7s are avaIlable In electronIc retaIl shops lIke 7Iveks, CIrIas, Next,
Ezone etc.

ExclusIve dIstrIbutIon:
n thIs type of channel format, marketer gIves only a lImIted number of dealers the
exclusIve rIght to dIstrIbute Its products In theIr terrItorIes. For example, a Kaya skIn
care solutIon of |arIco Is marketed through exclusIve dIstrIbutIon.


5. Assynny the responsbltes to chcnnel members.
Company should defIne the terrItory In whIch the channel member should
operate, at what prIce he should sell, servIces he should perform, and how he
should sell.

. Selectny the crterc to evclucte the chcnnel member:
Company may have dIfferent types of channel alternatIves. t would lIke to
choose any one of the alternatIves, whIch meets Its objectIves. Channels can
be evaluated In the desIgn phase by the method called SCPCA.
SaIes(S):
The abIlIty of each channel member to generate the sales for company In a gIven
perIod.
Cost(C):
How much cost each channel alternatIve Incurs: WhIch one of the alternatIves provIdes
the optImum solutIon:
ProfItabIIIty (P):
7arIous channel alternatIves avaIlable to the company and theIr profItabIlIty shall be
compared. Channel wIth better profItabIlIty shall be selected.
ControI (C):
Every company would lIke to have better control over Its channel members.
AlternatIve channels can be evaluated on the basIs of how much control each channel
member desIres. And how much control the company Is wIllIng to provIde.
AdaptabIIIty (A):
|arketIng Is a dynamIc world. CompetItIon exerts pressure on companIes to relook at
theIr practIces and supply chaIn contInuously. The channel alternatIves should be
flexIble enough to meet the changIng requIrements. WhIchever channel alternatIve
meets such objectIves shall be selected.
harketIng IntermedIarIes:
These are fIrms whIch dIstrIbute and sell the goods of the company to the consumer.
|arketIng IntermedIarIes play an Important role In the dIstrIbutIon, sellIng and
promotIng the goods and servIces. StockIng and delIverIng, bulk breakIng, and sellIng
the goods and servIces to customer are some of the major functIons carrIed out by the
mIddlemen. FetaIlers, wholesalers, agents, brokers, jobbers and carry forward agents
are few of the IntermedIarIes. FetaIlers are fInal lInk between the company and the
customers. TheIr role In the marketIng of product Is IncreasIng every day.
NB - Naiketing Nanagement set- Page 8

Q.2.A. Fxploin tbe Jifferent proJuct mix pricinq stroteqies
Ans:-

Product hIx PrIcIng StrategIes

1. Product Lne prcny:
Strategy of settIng the prIce for entIre product lIne. |arketer dIfferentIates the
prIce accordIng to the range of products, I.e. suppose the company Is havIng
three products In low, mIddle and hIgh end segment and prIces the three
products say at Fs 10 Fs 20 and Fs J0 respectIvely. n the example of NokIa
mobIle phones NokIa 1110 Is prIced @ Fs 1J49, NokIa 7610 prIced @ Fs 6249 and
NokIa E90 prIced @ Fs J4599. All the three products cater to the dIfferent
segments low, mIddle and hIgh Income group respectIvely. The three levels of
dIfferentIatIon create three prIce poInts In the mInd of consumer. The task of
marketer Is to establIsh the perceIved qualIty among the three segments. f the
customers do not fInd much dIfference between the three brands, he/she may
opt for low end products.

2. Dptoncl Product prcny:
thIs strategy Is used to set the prIce of optIonal or accessory products along
wIth a maIn product. |arutI SuzukI wIll not add above accessorIes to Its
product SwIft but all these are optIonal. Customer has to pay dIfferent prIces
as mentIoned Inthe pIcture for dIfferent products. DrganIzatIons separate these
products from maIn product so that customer should not perceIve products are
costly. Dnce the customer comes to the show room, organIzatIon explaIns the
advantages of buyIng these accessory products.

J. Ccptve product prcny:
SettIng a prIce for a product that must be used along wIth a maIn product. For
example, CIllette sells low prIced razors but make money on the replacement
cartrIdges.

4. 8yproduct prcny:
t Is determInIng the prIce for byproducts In order to make the maIn products
prIce more attractIve. For example, L.T. Dverseas, manufacturers of 0awaat

basmatI rIce, found that processIng of rIce results In two byproducts I.e. rIce
husk and rIce braIn oIl. f the company sells husk and braIn oIl to other
consumers, then company Is adoptIng byproduct prIcIng.

5. Product bundle prcny:
t Is offerIng companIes several products together as a bundle at the reduced
prIce. ThIs strategy helps companIes to generate more volume, get rId of the
unused products and attract the prIce conscIous consumer. ThIs also helps In
lockIng the customer from purchasIng the competItors products. For example,
Anchor toothpaste and brush are offered together at lower prIces.

..B. 6ive o note on morketinq concepts.
Ans:-

Core Concepts of harketIng
There are certaIn fundamental concepts and tasks whIch one needs to know to fully
understand the marketIng functIon. These concepts provIde foundatIon for a
marketIng orIentatIon and to manage the marketIng functIon.

1. Needs and Wants
The marketers task lIes In satIsfyIng human needs and wants through the exchange
process. t Is alleged that "marketIng creates needs" and makes people buy thIngs
they do not actually need. n realIty, marketIng or marketers do not create "needs",
but they create "wants". Some needs are the basIc human requIrements of food,
clothIng, shelter, water and aIr. There are other needs such as socIal needs, esteem
needs etc. When we desIre certaIn specIfIc objects or Items to fulfIll these needs, they
are called wants. For example, when a person Is hungry, he can satIsfy hIs hunger by
takIng a sImple meal at home. nstead, If he wants to eat a PIzza or a Hamburger or a
5Star Hotel meal, It Is not a ,need but a ,want. ThIs dIfference between wants

and needs Is not the same as understood In the subject matter of ,economIcs. The
marketer IdentIfIes the need whIch may lIe unexpressed by the customer.

The task of a marketer Is to Influence our wants rather than needs. He does so along
wIth other InfluentIal factors such as socIocultural forces and InstItutIons such as
famIly, relIgIon, and dIfferent reference groups.

|arketers, suggest to consumers that a partIcular car would satIsfy the persons need
for esteem. They do not create the need for esteem, but try to poInt out how a
partIcular product would satIsfy that need.

2. 0emand
Human wants are unlImIted, but theIr resources are lImIted. When a want for an
object Is backed or supported by buyIng abIlIty, wIllIngness to spend and desIre to
acquIre a product / servIce, It becomes a potentIal demand. The task of assessIng or
estImatIng demand Is very crucIal for a marketer. He should understand the
relatIonshIp of the demand for hIs product wIth Its prIce. 0emand forecastIng Is
essentIal for allocatIon of resources In a company. ThIs Is the reason why marketers
segment consumers on the basIs of theIr earnIng capacIty. The Income of the
consumer IndIcates the potentIal to buy.

3. Product and ServIces
Product Is a generIc term used to descrIbe what Is beIng offered by a seller or
marketer. t may be a good, a servIce or Idea, whIch can be marketed by offerIng a set
of benefIts It offers to customers to satIsfy theIr needs. However, there Is a dIstInctIon
between products and servIces. When we say ,product, we mean a physIcal or a
tangIble product such as a tooth paste, a refrIgerator or a mobIle phone, whereas
,servIce refers to an act, performance, a benefIt and IndIcates IntangIbIlIty and
absence of ownershIp or possessIon. ServIces can Include bankIng servIce, hospItalIty
servIce, aIrlInes servIce, health servIce, entertaInment servIce etc. Thus, a product
can be defIned as anythIng that can be offered to market to satIsfy a need or want.
Today, many types of entItIes such as goods, servIces, experIences, events, persons,
places and Ideas are beIng marketed.


. Target harket
7ery few products can satIsfy everyone In the market. Therefore, marketers dIvIde the
market Into dIstInct groups of buyers who have sImIlar preferences. These groups are
called segments wIth theIr own specIfIc demographIc, psychographIc and behavIoral
characterIstIcs. The marketer decIdes as to whIch of these segment or segments offer
hIghest opportunIty for hIs company. For each of these target markets, the fIrm
develops a product / servIce suIted to theIr needs. TATA group has recently desIgned
an economy car called ,NAND whIch Is prIced around Fs. 1 Lakh. The target market
for thIs car Is all aspIrants who dream of ownIng a car but cannot afford cars, whIch
are currently avaIlable for mInImum Fs. 2.5 Lakh. A Target |arket Is the group of
people at whom a marketer targets hIs marketIng efforts to sell hIs goods and servIces.

5. harketIng hanagement
|arketIng |anagement whIch Is also the tItle of thIs course refers to all the actIvItIes
whIch the marketIng managers, executIves and personnel have to undertake to carry
out the marketIng functIon of the fIrm. t Involves (I) analyzIng the market
opportunItIes by undertakIng consumer needs and changes takIng place In the
marketIng envIronment, (II) plannIng the marketIng actIvItIes, and (III) ImplementIng
marketIng plans and settIngs control mechanIsm to ensure smooth and successful
accomplIshment of the organIzatIons goals. |arketIng |anagement Is a crItIcal
functIon, especIally In hIghly competItIve markets. t provIdes competItIve edge to an
organIzatIon through strategIc analysIs and plannIng.

6. VaIues and SatIsfactIon
n developed and developIng economIes, consumers have several products or brands to
choose to satIsfy hIs/her need. Consumers perceptIons about value whIch they can
expect from dIfferent products or servIces depend upon several factors. Sources that
buIld the customer expectatIons Include, own experIence wIth products, frIends,
famIly members, consumers reports and marketIng communIcatIons. Customer value
Is the dIfference between total benefIts receIved and total costs Incurred by hIm In
acquIrIng the product or servIces. The types of benefIts could be products functIonal
value, or Its brand related Image value and any accompanyIng servIce value. The types
of costs a customer can Incur may be monetary cost and energy cost.


7alue Is prImarIly a functIon of qualIty, servIce and cost. 7alue Increases wIth Increase
In qualIty and servIce and decreases wIth Increase In cost. 7alue Is an Important
marketIng concept and the task of marketIng Is to IdentIfy, create, communIcate,
delIver and monItor customer value.

Customers generally experIence satIsfactIon when the performance level meets
mInImum performance expectatIons of a product or servIce. When the performance as
perceIved exceeds the expected performance level, the customer wIll be not just
satIsfIed, but delIghted. Thus customer satIsfactIon or delIght wIth respect to a
product or servIce encourages customers to come back and repurchase the product or
servIce In future. SatIsfIed customers can be an asset to the marketIng company over a
perIod of tIme, as they wIll spread favorable wordofmouth InformatIon or opInIons.


Q.J.A. bot ore tbe feotures of business morkets?
Ans:-

IndustrIaI Coods harket

0efInItIon:
A busness mcrket s de]ned cs c mcrket where output o] one ]rm yoes ether cs rcw
mctercl, yoods n process or cs consumcbles o] cnother ndustry. ThIs market Is also
known as organIzatIonal or 828 market. t Is made up of organIzatIons IncludIng
manufacturIng unIts, servIce fIrms, government departments and other busIness
enterprIse. The products whIch are sold In the IndustrIal goods market are typIcally,
raw materIals, machInes, machIne tools, equIpments, components and spares etc.
Cenerally, the buyers of IndustrIal goods, purchase products and servIces eIther for
producIng other products and servIces whIch can be sold In the consumer markets or
for usIng them to facIlItate the operatIon of busIness enterprIse. n many such cases,
the buyer Is an organIzatIon whose consumptIon wIll depend on how the end users
demand wIll change. Hence, In busIness markets, the demand Is a derIved demand.
0emand for steel wIll depend on the consumptIon of steel equIpments, rods and other
accessorIes In the constructIon and real estate sector.

Non-ProfIt and Covernment harkets
ThIs market whIch consIsts of NonProfIt organIzatIons such as socIalservIce agencIes,
educatIonal organIzatIons, charItable organIzatIons and Covernment 0epartments and
agencIes needs specIal skIlls to sell to them. These buyers have lImIted purchasIng
power whIch Is why prIcIng for thIs market needs to be planned carefully. The
Covernment, whIch Is a large buyer, makes purchases on the basIs of tenders, bIds and
negotIatIon.

What Is harketIng!
SImply seen marketIng Is a set of busIness actIvItIes that facIlItate movement of goods
and servIces from producers to consumers. t Is an ongoIng process of 1. 0IscoverIng
and translatIng consumer needs Into products and servIces, 2. CreatIng demands for
them, servIng the customer and hIs demand through a marketIng programme of
promotIon and J. 0IstrIbutIon to fulfIll the companys marketIng goals In a
competItIve envIronment.t Is evIdent that the customer, needs and wants are very

Important aspects of marketIng as of today. Customer focus Is the very essence of
marketIng.
n thIs era of rapId changes, It Is marketIng whIch keeps the busIness In close contact
wIth Its economIc, polItIcal, socIal and technologIcal envIronment, as It Informs the
busIness of events and changes that take place In the envIronment. AmerIcan
|arketIng AssocIatIon (A|A) offers the followIng defInItIon of |arketIng. (A|A 2004)

0efInItIon:
Mcrketny s cn orycnzcton ]uncton cnd c set o] processes ]or crectny,
communcctny cnd delverny vclue to customers cnd ]or mcncyny customer
relctonshps n wcys thct bene]t the orycnzcton cnd ts stcke holders.

The Chartered nstItute of |arketIng defInes |arketIng as:
|arketIng Is the management process responsIble for IdentIfyIng, antIcIpatIng and
satIsfyIng customer requIrements, profItably.
HavIng understood what a |arket Is and what Is |arketIng, we wIll now look at what Is
an exchange and also the exchange process.

..B. rite o sbort note on proJuct line onJ proJuct mix
Ans:-

Product LIne StrategIes

Product IIne:
The group of related products whIch uses same marketIng efforts to reach the
consumer. The product lIne IdentIfIes profItable and unprofItable products and helps
In allocatIon of resources accordIng to that. The product lIne understandIng helps the
marketer to take lIne extensIon, lIne prunIng and lIne fIllIng strategIes of the
company.


PIdIlIte ndustrIes, the adhesIves and chemIcal company, have the followIng group of
related products (or product lInes) In consumer and busIness markets.

Consumer market.
1. AdhesIves and sealants.
2. Art materIals and statIonerIes.
J. ConstructIon chemIcals.
4. AutomotIve chemIcals
5. FabrIc care

usIness market
1. ndustrIal adhesIves.
2. TextIle chemIcals.
J. DrganIc pIgment powders.
4. ndustrIal resIns and
5. Leather chemIcals.

Product LIne 0ecIsIons:
The major product lIne decIsIons are
a. Product lIne length
b. Product lIne stretchIng
c. Product lIne fIllIng
d. Product lIne prunIng

Product IIne Iength: The number of Items In the product lIne Is called the product lIne
length. Company should decIde whether It requIres longer chaIn or shorter length. The
decIsIon depends upon the objectIve of the company, competItIve envIronment and
profItabIlIty. f the chaIn Is short company can add new products and If It Is lengthy
company can reduce the number of products. For example, PIdIlIte's adhesIves and
sealants lIne has followIng 11 Items In the product lIne.


Product IIne stretchIng: Company lengthens Its product lIne eIther by stretchIng
upwards or downwards or both ways. LIne stretchIng decIsIon depends on three
sItuatIons
I. Company whIch operates In hIgh end market may come up wIth mId class or low
class targeted products.
II. The company whIch operates In lower end of market may come up wIth hIgh end
market products.
III. f the company operates In mId segment and comes out wIth low end product as
well as hIgh end product then It Is stretchIng both ways.

For example, |arutI SuzukI LImIted launched Its fIrst product, |arutI 800 In the year
198J and In the year 1985 It launched |arutI Cypsy. Cypsy Is costlIer than |arutI 800
and targeted for hIgher segment. ThIs shows that the company extended Its product
lIne upwards or In short, upward stretch.

Tata |otors launched theIr Fs 1 lakh car NAND In the year 2008. The company whIch
was targetIng upper class and mIddle class wIth theIr products SU|D and ndIca
respectIvely, has stretched downwards to reach the lower level segment. ThIs
Illustrates the downward stretch.

Toyota KIrloskar LImIted whIch extended theIr lIne from QualIs and Corolla to nnova
and Camry Is plannIng to come out wIth small car In ndIa. ThIs clearly Illustrates the
two way stretch of the product lIne.

Product IIne fIIIIng: AddIng more Items In the present product lIne. For example, In
the year 2000 |arutI SuzukI launched Alto. ThIs product was between |arutI 800 and
|arutI Zen. Here company was tryIng to fIll the gap exIstIng In the segment by
IntroducIng ALTD, I.e. lIne fIllIng.

Product IIne prunIng: FemovIng the unprofItable products form the product lIne.
Toyota KIrloskar phased out theIr well known brand QualIs when they thought the
brand was not addIng value to the product lIne.


Product hIx
The number of product lInes and Items offered by marketer to the consumers
A company's product mIx has four dIfferent dImensIons. They are product mIx wIdth,
product mIx length, product mIx depth and product mIx consIstency.
Product mIx wIdth: The total number of product lInes that company offers to the
consumers.

For example, Jyothy LaboratorIes' product mIx has sIx lInes. Hence the wIdth Is 6
Product mIx length: The total number of Items that company carrIes wIthIn Its product
lIne.

For example, Jyothy LaboratorIes fabrIc care dIvIsIon has three Items
Product lIne depth: The number of versIons offered of each product In the lIne.

For example, Jyothy LaboratorIes' Jeeva Natural Is offered In three versIons I.e.
Coconut |Ilk wIth |Ilk ProteIn, Coconut |Ilk wIth JasmIne and Coconut |Ilk wIth
KasturI |anjal, and Is presented In 75gm packs.

Product mIx consIstency:
f company's product lInes usage, productIon and marketIng are related, then product
mIx Is consIstent, else It Is unrelated.

n the case of Jyothy LaboratorIes, all sIx product lInes are F|CCs. Hence It Is havIng
consIstent product mIx. 8ut TC Company's cIgarette and cloth product lInes are
totally unrelated.


Q.4.A. Select ony JeoJoront bronJ onJ evoluote its positioninq
strenqtbs or weokness in terms of ottributes, benefits, volues,
bronJ nome onJ bronJ equity
Ans:-

8rand equIty Is set of assets lInked to a brand,s name and symbol that adds value to
the product or servIce and/or that fIrms customer.
Components of brand equIty:
1. 8rand loyalty
2. 8rand awareness
J. PerceIved qualIty
4. 8rand assocIatIons

rand LoyaIty
s consumer's commItment to repurchase the brand and can be demonstrated by
repeated buyIng of a product or servIce or other posItIve behavIors such as word of
mouth advocacy. True brand loyalty ImplIes that the consumer Is wIllIng, occasIonally
at least, to put asIde theIr own desIres In the Interest of the brand. ThIs wIll help
organIzatIon to reduce the promotIon cost. For example, many gIrls In ndIa use only
Ponds products, though competItors products lIke Fa, SpInz, CutIcura, and |ysore
Sandal are present In the market and vIce versa.

rand Awareness
The number of customers exposed to the brand name. HIgher the brand awareness,
hIgher wIll be the brand equIty. DrganIzatIons put all the effort In the IntroductIon
stage of the product to create awareness among the customers. For example, Xerox
Company has huge brand awareness sInce photocopIer machInes were Introduced by
thIs company and even today photocopIes are referred as Xerox copIes.

PerceIved uaIIty
The customer perceptIon about the actual qualIty level of the product. For example,
when a customer purchases LevIs jeans he knows that It IndIcates qualIty even though
there are several cheaper brands of jeans avaIlable In the market.


rand AssocIatIons
The attrIbute of the brand that customer assocIates wIth hIs/ her belIef. A person may
assocIate the brand for power, strength or protectIveness. For example, a customer
may assocIate NIke brand not just for sports shoes but also any accessory assocIated
wIth sports. So, for hIm, NIke represents sports.

rand Name SeIectIon
8rand provIdes the Image to the product. 8rand manager should be careful In selectIng
a proper name for the brand. There are sIx suggestIons from PhIlIp Kotler to create a
successful brand name. They are
1. t should suggest somethIng about the product benefIts and qualItIes; e.g. FrootI or
Appy FIzz
2. t should be easy to pronounce, recognIze, and remember: e.g. Amul, KIssan, FuchI
J. The brand name should be dIstInctIve: e.g. Cello, 7P
4. t should be extendable: AashIrwad, WIlls
5. The name should be easIly translated Into a foreIgn language: e.g., |r. WhIte.
6. t should be capable of regIstratIon and legal protectIon e.g. PepsI Is a regIstered
brand and other brands cannot compete wIth It usIng any sImIlar soundIng name.

A brand Is a name, term, desIgn, symbol, or any other feature that IdentIfIes one
seller's good or servIce as dIstInct from those of other sellers.
O Components of brand equIty are brand loyalty, brand awareness, brand
assocIatIon and perceIved qualIty
O 8rand lIcensIng: t Is the legal authorIzatIon by the trade marked brand owner
to allow another company to use Its brand for a fee.
O CompanIes use lIne extensIon, brand extensIon, multI brands and new brand
strategIes to develop the brand


Q.5.A. bot oJvice woulJ you qive o compony tbot bos focinq
boJ publicity? bot steps woulJ you tell tbe compony to improve
its reputotion?
Ans:-

PubIIcIty:
PublIcIty can be saId as a sImple act of makIng a suggestIon to the concerned partIes -
T7 or radIo channel, news reporter or journalIst, fIlm makers, etc. that leads to the
InclusIon of a company/products In an already exIstIng story or a newly developed
one. PublIcIty may also Include any such InformatIon that attracts attentIon to a
company, Its products, Its people or any event, usually generated by a thIrd party such
as medIa. PublIcIty maybe a part of PF or It may be Independent of It In certaIn
sItuatIons.

Cood PubIIcIty and ad PubIIcIty:
PublIcIty may have posItIve or negatIve Impacts. For example, It became a negatIve
publIcIty for CocaCola when people In ndIa, started to throw or break the bottles on
the roads because of the belIef that It contaIned pestIcIdes or toxIc substances. News
channels covered the same gIvIng negatIve publIcIty to the company and the products.
Ways In whIch organIzatIons can use publIcIty as a communIcatIon tool are as follows:

O DrganIzIng events, contests, exhIbItIons, publIc dIsplays, tours, etc.

O SponsorIng awards, scholarshIps or gIvIng charIty for any noble cause.

O ssuIng reports, conductIng survey or polls, takIng stand on any debatable or
envIronmental Issues, etc.

O Any other way that Is approprIate lIke for example dIsplayIng the products In a
movIe and askIng the lead actors to use the products In that movIe. Ways In
whIch organIzatIons can avoId or mInImIze the effects of bad publIcIty:

O ProvIdIng people wIth the accurate InformatIon and gIvIng clarIfIcatIons If
needed eIther through press release, medIa IntervIews, websItes, publIc

messages, advertIsIng etc. Companys top management or spokesperson can
gIve a publIc statement or comment In the varIous medIa.

O mprovIsIng PublIc FelatIons and desIgnIng good publIcIty message to erase the
effects of bad publIcIty.

O ContInuIng to provIde qualIty products and servIces to the consumers.

O nvolvIng In communIty work or envIronmental protectIon campaIgns or any
such actIvIty for a good cause.

PromotIon mIx Is comprIses of a combInatIon of varIous marketIng communIcatIons
technIques whIch Includes of AdvertIsIng, Sales PromotIon, PublIc FelatIon, PublIcIty,
Personal SellIng and 0Irect |arketIng.

Q.5.8. As o bronJ monoqer, wbot ore tbe woys in wbicb you will
select o bronJ nome for your proJuct- wotcbes onJ bow will you
position it in tbe morket?
Ans:-

rand Name SeIectIon
8rand provIdes the Image to the product. 8rand manager should be careful In selectIng
a proper name for the brand. There are sIx suggestIons from PhIlIp Kotler to create a
successful brand name. They are

1. t should suggest somethIng about the product benefIts and qualItIes; e.g. FrootI or
Appy FIzz

2. t should be easy to pronounce, recognIze, and remember: e.g. Amul, KIssan, FuchI

J. The brand name should be dIstInctIve: e.g. Cello, 7P


4. t should be extendable: AashIrwad, WIlls

5. The name should be easIly translated Into a foreIgn language: e.g., |r. WhIte.

6. t should be capable of regIstratIon and legal protectIon e.g. PepsI Is a regIstered
brand and other brands cannot compete wIth It usIng any sImIlar soundIng name.

rand PosItIonIng
As we dIscussed In the SegmentatIon, TargetIng and PosItIonIng unIt, the Image of the
product should be created or posItIoned In the mInds of consumers. 8rand managers
use three levels of posItIonIng strategIes to get the mInd share of the customer.
A brand Is a name, term, desIgn, symbol, or any other feature that IdentIfIes one
seller's good or servIce as dIstInct from those of other sellers.


Q..A. bot is HlS? bot ore its benefits?
Ans:-

We saw how marketIng envIronment Is changIng and presentIng new opportunItIes and
threats to an organIzatIon. The maIn responsIbIlIty for IdentIfyIng sIgnIfIcant changes
In the market place falls on the marketIng department. They are better placed and
have advantages In undertakIng thIs task because they are regularly InteractIng wIth
customers and observIng competItIon.

The |arketIng 0epartments need to develop harketIng InformatIon Systems that
provIde them InformatIon about buyer wants, preferences, behavIor and also about
competItIon. They are able to do thIs by settIng up systems and marketIng related
research methods to collect thIs valuable InformatIon whIch Is ultImately used to make
marketIng decIsIons. A |arketIng nformatIon System Is a set of procedures to collect,
analyze and dIstrIbute accurate, prompt and approprIate InformatIon to dIfferent
levels of marketIng decIsIon makers.

enefIts of hIS
7arIous benefIts of havIng a |S and resultant flow of marketIng InformatIon are gIven
below:
1. t allows marketIng managers to carry out theIr analysIs, plannIng ImplementatIon
and control responsIbIlItIes more effectIvely.
2. t ensures effectIve tappIng of marketIng opportunItIes and enables the company to
develop effectIve safeguard agaInst emergIng marketIng threats.
J. t provIdes marketIng IntellIgence to the fIrm and helps In early spottIng of changIng
trends.
4. t helps the fIrm adapt Its products and servIces to the needs and tastes of the
customers.
5. 8y provIdIng qualIty marketIng InformatIon to the decIsIon maker, |S helps In
ImprovIng the qualIty of decIsIon makIng.


Q..8. Eow is rurol morketinq Jifferent from urbon morkets?
Ans:-
.
Fural ndIa wIth approxImately 74 crore populatIon Is the bIggest market. CompanIes
are tryIng to grab a pIe of thIs untapped market. For example, TC wIth theIr e
choupals In Haryana, have set up a market for agrIcultural products and other
offerIngs. Such InformatIon provIdes InsIghts for marketers to venture Into hItherto
green fIelds. The statIstIcs thrown up helps marketers desIgn products suItable to such
markets.
CrowIng urbanIzatIon, IncreasIng partIcIpatIon of women In lIvelIhood actIvItIes,
advent of global cultural practIces, greater exposure to lIfe styles practIced world
wIde etc has altered marketIng efforts remarkably. A club house and a swImmIng pool
Is an essentIal part of purchase decIsIon for a flat In a metro. |arketers have encased
thIs trend durIng the nIneteen nInetIes and later too. FestIvals have gaIned an urban
color and marketers are packagIng festIvals offers accordIngly. Dn the other hand the
rural populace has been exposed to urban lIfe style thanks to the electronIc medIa.
CompanIes lIke HIndustan Lever have successfully marketed theIr low prIced offerIngs
of toIletrIes and cosmetIcs In the rural areas. WhIle thIs transformatIon Is over a wIde
canvas, we mentIon below some of the major changes whIch have affected the
marketIng efforts.
n a rapIdly changIng scenarIo, marketers have to contInuously explore new markets
and ways of servIng them. n ndIa, enterprIses are dIscoverIng the potentIal of a huge
rural populatIon to drIve busIness. Prof C K Prahlad, had aptly summed up the
potentIal as ,fortune at the bottom of the pyramId In a pathbrakIng book of the
same name. Fural marketIng Is not somethIng akIn to glocalIsatIon. t Is not the
modIfIcatIon of urban marketIng strategIes to suIt the rural market. Dn the other hand
It Is developIng products to meet the needs of the rural sector and reachIng It across
as per the specIfIc characterIstIcs of the rural envIronment. n case of a detergent, It
Is producIng one whIch wIll suIt the rural envIronment (consIderIng that the dIrtand
grIme Is dIfferent, clothIng alternatIves are dIfferent, avaIlabIlIty of water and number
of tImes of washIng Is dIfferent and so on); packagIng and prIcIng whIch wIll be akIn to
theIr requIrement and alternatIve ways for whIch the detergent may be put to use. For
example HIndustan Lever found that Its detergent was beIng used for washIng the
cattle.


Why Is the ruraI market so Important today!
The followIng table wIll gIve you some Idea about the emergence of the rural market
whIch marketers may Ignore at theIr own perIl.

Why Is ruraI marketIng dIfferent!
ThIs has to be understood In the lIght of the 4Ps or 7Ps of marketIng. magIne that you
are tryIng to establIsh a Coffee Caf 0ay Dutlet In a remote vIllage In |aharashtra.
WIll that be vIable proposItIon: Yet there may be consumers for coffee In the rural
sector too. The offerIng has to suIt the sector. SImIlarly an Ice cream parlor may not
be a workable Idea In a vIllage or a cluster of vIllages If there Is no electrIcIty
connectIon there. The Ice cream cart vendor Is a better Idea. KeepIng these sItuatIons
In perspectIve, one can draw some Inferences why rural marketIng Is dIfferent.

1. AccessIbIlIty and mobIlIty: ThIs applIes both for the supplIer and the consumer. The
movement of the people Is restrIcted by the lack of surface roads and the mode of
transport. There are restrIctIons by way of vIsIbIlIty durIng nIght.

2. Average Income level of consumers: The average wage earners are characterIzed by
lower per capIta Income and dIsposable Income In comparIson to the urban.

J. CeographIcal dIstances: The lIvIng quarters are separated more than they are In the
urban areas. The cluster of vIllages Is also segregated by dIstances.

4. LIteracy level: Dn an average the lIteracy level In the rural sector Is lower In
comparIson to the urban sector.

There could be several other Issues whIch are specIfIc to the rural sector. These may
force marketers to take a dIfferent approach for the entIre marketIng process or at
least some of them as agaInst the urban sector

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Master of Business Administration - MBA Semester 2

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