Distributing the products

# What is Marketing channel?
Ans: - A set of interdependent organization that involve in the process of marketing a product and service available for use and consumption by the consumer and business user.

# How channel members add values?
Ans: - A marketing products and services availed to consumers; channel members add value by bridging the major time, place, and possession gaps that separate good and services from those who would use them members of the marketing channel perform many key functions. Some help to complete transactions –

1. Information: - Gathering and distributing marketing researches and intelligence information about actors and forces in the marketing environment needed for planning and aiding exchange.
2. Promotion: - Developing and spreading persuasive communications about an offer.
3. Contact: - Finding and communicating with prospective buyers.
4. Matching: - Shipping and fitting the offer to the buyers needs, including activities such as manufacturing, grading, assembling, and packaging.
5. Negotiation: - Reaching an agreement on price and other terms of the offer so that ownership or possession can be transferred.
6. Physical Distribution: - Transporting and storing goods.
7. Financing: - Acquiring and using funds to cover the costs of the channel work.
8. Risk taking: - Assuming the risks of carrying out the channel work.

# What is channel level? How many types of level in marketing channel?
Ans: - Channel level: A layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer. There are two types of marketing channels –
a) Direct marketing channel: - A marketing channel that has no intermediary levels. The company sells directly to consumers.
b) Indirect marketing channel: - A marketing channel containing one or more intermediaries levels.


# Difference between direct marketing and indirect marketing.
Ans: -
Direct Marketing Indirect Marketing
1. A channel that has no intermediary level. 1. A marketing channel that has one or more intermediary levels.
2. Company does direct sells. 2. Company does indirectly sell.
3. Company sell product to consumer directly. 3. Company sells product to consumer by intermediaries.
4. Company earn full profit 4. Company cannot earn full profit.
5. Door to door sell. 5. Sellers by distributors.

# Channel Behavior and Organization. ( Syllabus item)
Ans: - A marketing channel consists of firms that have partnered for their common good. Each channel members depends on the others. Channel behaviors are two types. They are –
1. Channel conflict: - Disagreement among channel members on goals and roles who should do what and for what rewards. It is two types –
a) Horizontal conflict: - It occurs among firm at the same level of channels.
b) Vertical conflict: - It occurs between different level at the same channel is even more common.
2. Conventional distribution channel: - A channel consisting of one or more independent producers, wholesalers, and retailers each a separate business seeking to maximize its own profits even at the expense of profit for the system as a whole.

# What is vertical marketing system? Define VMS component.
Ans: - For the channel as a whole to perform well each channel member’s role must be specified and channel conflict must be managed. The channel will perform better if it includes a firm, agencies or mechanism that provides leadership and has the power to assign roles and manage conflict.
Vertical Marketing System (VMS): - A distribution channel structure in which producers, wholesalers and retailers act as a unified system. One channel members owns the others has contract with them or has no much power that they all cooperate.

Producer


Wholesaler / Retailer


Consumer

Vertical Marketing System is three types –
1. Corporate VMS: - A vertical marketing system that combines successive stages of production and distribution under single ownership. Channel leadership is established through common ownership.
2. Contractual VMS: - A vertical marketing system in which independent firms at different level of production and distribution join together through contracts to obtain more economics or sells impact than they could achieve alone.
3. Administrative VMS: - A vertical marketing system that coordinates successive stages of production and distribution not through common ownership or contractual ties but through the size and power of one of the parties.

# What is horizontal marketing system?
Ans: - A channel arrangement in which two or more companies a one level join together to flow a new marketing opportunity.



# What in multi channel distributions system or hybrid marketing channel?
Ans: - A distribution system in which a single firm sets up two more marketing channel s to reach one or more customers segments.

Producer


Distributors

Retailers Dealers

Consumer segment1 Consumer segment2 Business segment1 Business segment 2

# Channel Design Decisions. ( Syllabus item)
Ans: - Designing channel system calls for analyzing consumer needs, setting channel objective, identifying major channel alternative and evaluating channel alternative.
1. Analyzing consumer needs: - Marketing channel are part of the overall consumer value delivery network. Every channel member adds value for customer. Designing channel should find out what consumer want from channel. Do they want to buy form near by location are they want to travel to more distance centralize location.
2. Setting channel objective: - A company should setting channel objectives to do their activity. A company’s channel objectives are influenced by nature of company, its products, its marketing intermediaries, its competitors and the environment.
3. Identifying major alternatives: - After define a companies channel objective it should next identifying major channel alternative in terms of types of intermediaries. Number of intermediaries is responsible of each channel member.
a) Types of intermediary: - A company should to identify types of channel member to carry out its channel works.
b) Number of channel member: - A companies should identifying number of cannel to use at each level.
c) Responsibility of channel member: - A producer and intermediaries need to agree on the terms and responsibility of channel member.
4. Evaluation of channel alternative: - A company has identified several channel alternatives. Among of them one alternative company selected base on long term benefit. Each alternative should evaluated base on company control and adapting criteria.

Pricing the Products

# What is price?
Ans: - Price is the amount of money charged for a product or service. Again price is the some of all values that consumer exchanges for the benefits of having or using the product or service.
1. Fixed price: - Setting on price of a product for all buyers.
2. Dynamic price: - Charging different price of a product depending on customer and situations.

# Show the impotency of pricing.
Ans: - Impotency of pricing are –
1. Price is only one elements of marketing mix that generate revenue.
2. Price is the most flexible element of marketing mix.
3. Most of the companies can not handle pricing well.
a) Company are too quickly reduce price to get sells rather convincing buyer that their product are worth a higher price.
b) Pricing is too cost oriented rather than consumers value oriented.

# General pricing approaches. (Syllabus item)
Ans: - A company sets price by selecting a general pricing approach that includes one or more these three sets of factors. We will examined the following pricing approaches –

1) Cost - based approach: - Cost based are three kinds :

a) Cost plus – pricing: - The simplest method of pricing is cost plus – pricing adding a standard mark up to cost of the product.
b) Break – even analysis: - Setting price brake even on costs of making and marketing a product or setting price to make a target profit.
c) Target profit pricing: - Setting price to earn a target profit.

2) Buyer based approach: - Setting price on perception value rather than on the seller cost.
• Value price: - Offering just the right combination of quality and goods service at a fair price.

3) Competition based approach: - Setting price based on price those competitors’ charges for similar product. It has two way –
a) Going rate: - Company se price based on what competitors are charging.
b) Sealed bid: - Company set based on what they think competitors will charge.

# Factor affecting Pricing Decisions. (Syllabus item)
Ans: - A companies pricing decisions are affected by both internal company factors and external environmental factors.

Internal factors affecting pricing decisions
Many internal factors influence the companies pricing decisions including the firms marketing objectives, marketing mix strategy, costs, and organizational considerations.
1) Marketing objectives: - Pricing strategies is largely determined by the decision on market positioning. Company’s marketing strategy can be different such as survival, maximization current profit, product quality leadership, marketing share leadership and others.
2) Marketing mix strategy: - Price is the only one marketing mix tool that the companies are used to achieve it objects. Pricing decision are co – ordinate with product design and quality, distribution and promotion decision to form consists marketing program.
3) Costs: - Cost is the set of floor for the price that a company can charge. The three type of costs are: -
a) Total cost: - The some of fixed cost and variable cost for any gave level of production.
b) Fixed cost: - Which cost that do not vary with the production or sales level.
c) Variable cost: - Which cost varies directly with level of production.
4) Organizational consideration: - In small company price of a product are set by top level management rather than production or seals department.
In large company of a product typically handled by divisional or product line management. In industrial market sells people may be allowed to negotiate with customers about price ranges.

External factors affecting Pricing Decisions
External environment that affected a companies pricing decisions such as nature of market and demand competitors cost, price, and offers, others external factors.
1) Nature of market and demand: - A companies pricing decisions depend on nature of market and demand. There are four types of market –
a. Pure competition: - This market consists of many buyer & sellers and they trading in a uniform product.
b. Monopolistic competition: - This market consists of many buyers and sellers who trade over a range of price rather than a single market price
c. Oligopolistic competition: - The market consists of few sellers who are highly sensitive to each other pricing and marketing strategy.
d. Pure monopoly: - The market consists of one seller. The seller may be a government monopoly a private regulated monopoly or a private non- regulated monopoly.

2) Competitors’ costs, prices and offers: - Another external that affected companies pricing decisions is competitors cost, price, and possible, competitor’s reactions to the companies own pricing moves. If the company follows high price and high margin strategy it may competitors but a low price and low margin strategy that stop the competitor and drive out them to market.
3) Other external factors: - Other external factors that affecting company’s pricing decision like as -
a. Economic condition: - Economic recession, inflation and interest rate affect the pricing decision.
b. Reseller need: -A company should set price that ensure reseller fair profit and easy to sell.
c. Government action: - Government action is another external factor which affects a company pricing decision.

# Discuss about new product strategies.
Ans: - Pricing strategies change as the product process through its life cycle. The introductory stage is especially challenging companies bringing out a new product face the challenge of setting prices for the first time. They can choose between two brand strategies –
a) Market - skimming pricing: - Setting a high price for a new product to skim maximum revenues layer by layer form the segments willing to pay the high price the company makes fewer but more profitable sales.
b) Market – penetration pricing: - Setting a low price for a new product in order to attract a large number of buyers and a large market share.



# Product Mix Pricing Strategies. (Syllabus item)
Ans: - The strategy for setting a product’s price often has to be charged when the product is a part of product mix. Product mix pricing strategies are fiver types –
1) Product Line Pricing: - Setting price steps between product line items. In product line pricing management must decide on the price steps to set between various products in a line. The price steps should take into account cost different between the products in the line. Customer’s evaluation of their different features and competitors price.
2) Optional - Product Pricing: - Pricing optional and accessory product that sold a main product but main product price remain same.
3) Captive – Product Pricing: - Pricing product that must be used with main product. Setting a price for products that must be used along with a main product such as blades for a razor and film for a camera.
4) By – Product Pricing: - Pricing low value by produce to get rid with them. Setting a price for by products in other to make the main products price more competitive. Some company produce main product with by - product and set price for by – product.
5) Product Bundle Pricing: - Pricing bundles of product that sold together within redact price. Combining several products and offering the bundle at a reduced price. For example fast – food restaurants bundle a burger, fries, and soft drink at a combo price.

# Price adjustment strategies. (Syllabus item)
Ans: - Companies usually adjust their basic prices to account for various customers’ differences and changing situations. The six price adjustment strategies summarized as –
1) Discount & Allowance Pricing: - Reducing prices for reward customer’s responses that carry pay or proportioning product.
I. Discount: A straight reducing in price on product during a period of time. Four types of discount are:
a) Cash discount c) Quality discount
b) Trade discount d) Seasonal discount

II. Allowance: - Promotional money paid by manufacturer to retailers. Allowance are two type:
a) Trade in allowance b) Promotional allowance

2) Segmented Pricing: - Adjusting prices of allow for different in customer, location and product. Selling a product or service at two or more prices where the difference in price is not based on differences in costs.
3) Psychological Pricing: - Adjusting prices for psychological effect. A price approach that considers the psychology of prices and not simply the economics the price is used to say something about the product. Psychological prices three types –
a) Old pricing b) Customary pricing policy c) Prestige pricing policy

4) Promotional Pricing: - Temporarily reducing price for increase short run sales. Temporarily pricing product below the list price and sometimes even below cost to increase short run sales.
5) Geographical Pricing: - Adjusting prices to account for the geographic location of customers. Five types of geographical pricing are –
a) FOB - origin pricing: - A geographical pricing strategy in which goods are placed free on board a carrier; their customer pays the freight form the factory to the destination.
b) Uniform - delivered pricing: - A geographical pricing strategy in which the company charges the same price pulse freight to all customers; regardless of their location.
c) Zone pricing: - A geographical pricing strategy in which the company sets up two more zones. All customers within a zone pay the same total price, the more distant the zone, the higher the price.
d) Basing - point pricing: - A geographical pricing strategy in which the seller designates some city as a basing point and charges all customers the freight cost from that city to the customer.
e) Freight - absorption pricing: - A geographical pricing strategy in which the seller absorbs all or part of the freight charges in order to get the desired business.
6) International pricing: - Adjusting pricing for international market. To do business in international market company can charge different price for different countries. Price of a product depends on cost, consumer’s economical condition, competitive situations, law & regulations, and development of the wholesaling and retailing system.

# Discuss the key issues related to initiating & responding to price charges.
Ans: - When a firm considers initiating a price change it must consider customer & competitor reactions. There are different implications to initiating price cuts & initiating price increases.
a) Buyer reaction to price changes is influenced by the meaning customers see in the price change.
b) Competitors reactions flow from a set reaction policy or a fresh analysis of each situation.

There are also many factors to consider in responding to a competitors price changes. The company that faces a price change initiated by a competitor must try to understand the competitor’s intent as well as the likely duration & impact of the change. If a swift reaction is desirable the firm should preplanned its reactions to different possible price actions by competitors. When facing a competitors price change the company might sit tight, reduce its own price, raise perceived quality, improve quality and raise price, or launch a frighten brand.

Product & Service Classification

# Define product. (Syllabus item)
Ans: - A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need of consumers products include more than just tangible goods.
Broadly defined, products include physical objects, services, events, persons, places, organization, ideas or mixes of these entities.
The term “product” broadly to include any or all this entities.

# What is service?
Ans: - Service means any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Examples are banking, hotel, airline, retail, tax preparation, and liome repair services.
# Classifications of product. (Syllabus item)
Ans: - Products and services fall into two broad classes based on the types of consumers that use them consumer products and industrial products. Broadly defined, products also include other marketable entities such as experiences, organization, persons, place, and ideas.
6. Consumer products: - consumer products are products and services bought by final consumer for personal consumption. Marketers usually classify this products and services further based on how consumers go about buying them. Consumer’s products include convenience products, shopping products, specialty products, and unsought products.
I. Convenience products: - Consumer product that the customer usually buys frequently immediately and with a minimum of comparison and buying effort. Example can be newspapers, fast-food.
II. Shopping products: - Consumer product that the customer, in the process of selection and purchases, characteristically compare on such bases as suitably, quality, price and style. Example furniture, clothing, hotel, and airlines services.
III. Specialty product: - Consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. Examples high priced photographic equipment, designer clothes.
IV. Unsought product: - Consumer product that the either does not know about or knows about but does not normally thing of buying. Examples life insurances, blood donations to the Red – Cross.
7. Industrial products: - Industrial products are those purchased for further processing or for use in conducting a business. Thus, the distinction between a consumer product and an industrial product is based on the purpose for which the product is bought. The three groups of industrial product & services include Materials and parts, capital item and supplies & services.
I. Materials and Parts: - Materials & parts include raw materials and manufactured materials and parts. Raw materials consists of farm products (wheat, cotton etc), natural products (fish, lumber etc).
II. Capital items: - Capital items industrial products that aid in the buyers production or operations including installations and accessory equipment.
III. Supplies & Services: - The final group of business products is supplies and services. Supplies include operating supplies (Lubricants, coal, paper etc) and repairs maintain items.
# Individual product decision. (Syllabus item)
Ans: - Individual product and service decisions also focus on product attributes, banding, and packaging, labeling, and product support services.
1. Product and services attributes: - Developing a product or services involves defining the benefits that it will offer. These benefits are communicated and delivered by product attributes such as quality, features, style, and design.
а. Product quality: - One of the major positioning tools for the markets. The ability of product to perform its functions it include the product overall durability, reliability, precision, ease of operation & repair, and other valued attributes.
б. Product features: - A product can be offered with varying features. A stripped – down model, one without any extras is the starring point.
в. Product style & design: - Design is a larger concept than style. Style simply describes the appearance of a product. Styles can be eye – catching producing. A sensational style may grab attention but it does not necessarily make the product perform better.
2. Branding: - A name, term, sign, symbol, or design or a combination of these intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. Brands also tell the buyer something about product quality. Branding also gives the seller several advantages.
3. Packaging: - The activities of designing and producing the container or wrapper for a product. Levels of packaging are (1) primary package, (2) secondary package and (3) tertiary package. Traditionally the primary function of package was to contain and protect the product.
4. Labeling: - Labeling is part packaging and consists of printed information that write down on the package (1) identification of product or brand unit price, (2) Description of who, where, and when it was made its contents and how to use safely, (3) Promote the product through attractive graphics.
5. Product support services: - Services is a major tool in getting competitive advantage. Comprises should design its support services to profitably meet the needs of target customers.

# Product line decisions (Syllabus item)
Ans: - A group of products that are closely related because they function in a similar manner are sold to the same customer groups are market through the same types of outlets, or fall within given prices ranges. Product line decisions involves product line length – the number of items in the product line may be too short or too long depends on companies objectives and resources company can length its product into two ways –
1. Stretching: - Length beyond current range, downward – upward and both way.
2. Filling: - Length within current range.

# Describe the decisions companies mark regarding product mix.
Ans: - The set of all products lines and items that a particular seller offers for sale. Avon’s product mix consists of major product line: beauty products, jewelry & accessories and inspirational products. These product mix dimensions provide the handles for defining the company’s products strategy. The company can increase its business in four ways. These are width, length, depth and consistency.

# Give explanation on major brand strategy decision.
Ans: - The major brand strategy decisions involve brand positioning, brand name selection, brand sponsorship and brand development.
Brand positioning Brand name selection Brand sponsorship Brand development
Attributes Selection Manufacture’s brand Line extensions
Benefits Private brand Brand extensions
Protection Multi brands
Beliefs & values Licensing co- branding New brands
1. Brand positioning: - Marketers need to position their brands clearly in target customers. They can position brands at any of three levels. Attributes are the least desirable level for brand positioning. A brand can be better positioned by associating its name with a desirable benefit. The strongest brands go beyond attribute or benefit positioning.
2. Brand name selection: - A good name can add greatly to a product’s success. However finding the best brand name is a difficult task. Desirable qualities for a brand name include the following –
a) It should suggest something about the product’s benefit and qualities.
b) It should be easy to pronounce, recognize and remember short name help.
c) The brand name should be distinctive.
d) It should be extendable.
3. Brand sponsorship: - A manufacturer has four sponsorship options. The product may be launched as a manufacturer brand. The manufacturers may sell to resellers who give it a private brand. Finally two companies can join forces and co - brand a product.
4. Brand development: - A company has four choices when it comes to developing brands. It can introduce line extension, brand extension, multi – brand and new brands. Brand development strategies:
Product category
Brand name Existing Existing New
Line extension Brand extension
New Multi brands New brand
a) Line extension: - Using a successful brand name to introduce additional items in a given product category under the same brand name such as new flavors, forms, colors, added ingredients or package size.
b) Brand extension: - Using a successful brand name to launch a new or modified product in a new category.
c) Multi – brands: - It offers a way to establish different features and appeal to different buying motives.
d) New brands: - A company may crate a new brand name when it enters a new product category for which none of the company’s current brand name is appropriate.

# what is services marketing?
Ans: - Service industries vary greatly. Government offer services through courts, employment services, hospital, military services, police and fire departments, portal services and schools. Privates not for profit organization offer services through museums, charities, churches, colleges, foundation etc.
# Marketing Strategies for Service Firms. (Syllabus item)
Ans: - Just like manufacturing business goods service firm use marketing to position them strongly in chosen their target market.
1. The service profit chain: - The chain that links service firm profits with employee and customer satisfaction. This chain consists of five links –
a) Internal service quality: - Superior employee selection and training, a quality work environment, and strong support for those dealing with customers, which result in internal service quality.
b) Satisfied & Productive service employees: - More satisfied, loyal and hard working employees, which result in satisfied & productive service employees.
c) Greater service value: - More effective and efficient customer value creation and service delivery, which results in greater service value.
d) Satisfied & loyal customers: - Satisfied customers who remain loyal, repeat purchases and refer other customers, which results in satisfied & loyal customers
e) Healthy service profits and growth: - Superior service firm performance.
2. Internal marketing: - Marketing by a service firm to train and effectively motivate its customer – contract employees & all the supporting service people to work as a term to provide customer satisfaction.
3. Interactive marketing: - Marketing by a service firm that recognizes perceived service quality depends heavily on the quality of buyer – seller interaction.

Market Segmentation & Targeting

# What is market segmentation?
Ans: - Dividing a market into smaller groups of buyers with separate needs, characteristics or behavior who might require separate products on marketing mixes.

# Bases & causes of segmenting consumer & business market. (Syllabus item)
Ans:- There is no single way to segment a market therefore the marketer tries different variables to see which give the best segmentation opportunities. For consumer marketing the major segmentation variables are geographic, demographic, psychographic & behavioral.

 Geographic segmentation: - In geographic segmentation the market is divided into different geographical units such as nations, regions, states, countries, cities or neighborhoods.
 Demographic segmentation: - In demographic segmentation the market is divided into groups based on demographic variables including age, gender, family size, family life cycle, income, occupation, education, religion, race, generation & nationality.
 Psychographic segmentation: - In psychographic segmentation the market is dividing into different groups based on social class, lifestyle or personality characteristics.
 Behavioral segmentation: - In behavioral segmentation the market is divided into groups based on consumer’s knowledge, attitudes, uses or responses to a product.
Business market uses many of the same variables to segment their markets. But business market also can be segmented by business consumer demographic, operating variables, purchasing approaches, situational factors & personal characteristics –
1. Demographics: - Including industry, company, location etc.
2. Operating variables: - Including technology, user – nonuser, customer capabilities.
3. Purchasing approaches: - Including purchasing function organization, power structure, nature of existing relationship, general purchases policies, purchasing criteria.
4. Situational factors: - Including urgency, specific application, size of order.
5. Personal characteristics: - Including buyer – seller similarity attitudes forward risk, loyalty.

# Requirements of effective segmentation. (Syllabus item)
Ans: - Clearly, there are many ways to segment a market but not all segmentations are effective. To be useful segments must be –
1. Measurable: - Size, purchasing power, profile of segment can be measured
2. Accessible: - Segments must be effectively reached and served.
3. Substantial: - Segments must be larger or profitable enough to serve.
4. Differential: - Segments must be responding differently to different marketing mix elements and actions.
5. Actionable: - Effective programs can be designed for attracting and serving the segments.

# What is target marketing?
Ans: - The process of evaluating each market segments attractiveness & selecting one or more segments to enter.
# Evaluating market segments. (Syllabus item)
Ans: - A total market has many segments. Really, this market has many subs – market. Every market are not same. In this market customers demand their like – dislikes are also different. In evaluating different segments a firm must look at three factors – segment size and growth, segment structural attractiveness, company objectives & resources.
• Segment size and growth: -Analyzed sells growth rates and expected profitability.
• Segment structural attractiveness: - Consider effects of competitor’s availability of substitute products & the power of buyers and suppliers.
• Company objectives & resources: - Company skills and resources are related to the segment look for competitive advantage.
# Selecting Market Segments. (Syllabus item)
Ans: - Consumers owns needs and wants are really individual. So most of the business organizations try to find out broader classes of buyers. So they can do different level of market segmentation.
I. Mass marketing: -No marketing segmentation is present here. The mass marketing was more popular in beginning of modern marketing system. A company marketed one brand of product to all classes of buyers. It also known as undifferentiated marketing.
II. Micro marketing: - The practice of tailoring products & marketing programs to the needs and wants to specific individuals and local customer group include local marketing and individual marketing.
III. Segmented market: - A market – coverage strategy in which a firm decides to target several market segments and designs separate offers each. It also known as differentiated marketing.
IV. Niche marketing: - A market – coverage strategy in which a firm goes after a large share of on or few segments on niche. It also known as concentrated marketing.

Undifferentiated (mass) ==> Differentiated (segmented) ==> Concentrated (niche) ==> Micro (local or individual marketing)
Marketing Marketing Marketing Marketing
Targeting broadly targeting narrowly

Consumer Markets & Consumer Buying Behavior

# Definition of Consumer buying behavior & Consumer market. (Syllabus item)
Ans: - Consumer buyer behavior refers to the buying behavior of final consumers – individuals & households who buy goods & services for personal consumption. All of these final consumers combine to make up the consumer market.
# Model of consumer behavior. (Syllabus item)
# Factors affecting consumer behavior. (Syllabus item)
Ans: - Consumer purchases are influenced by cultural, social, personal, & psychological characteristics.

• Cultural factor: - Cultural factors exert a bread & deep influence on consumer behavior. The market needs to understand the role played by the buyer’s culture, subculture, & social class.

a) Culture: - The set of basic values, perceptions, wants, & behaviors learned by a member of society form family & other institutions. Culture is the most basic cause of a person’s wants & behavior.
b) Sub-culture: - Each culture contains smaller sub-culture or groups of people with shared value systems based on common life experiences & situations.
c) Social class: - Almost every society has some form of social class structure. Social classes are society’s relatively permanent & order decisions whose members share similar values, interests, & behavior.

• Social factors: - A consumer’s behavior also is influenced by social factors, such as the consumer’s small groups, family & social roles & status.

a) Groups: - Two or more people who interact to accomplish individual or mutual goals. A personal behavior is influenced by many small groups
 Membership: - Groups that have a direct influence & to which a person belongs are called membership groups.
 Aspiration Groups: - This group is one to which the individual wishes to belong.
 Reference groups: - This group exposes a person to new behaviors & lifestyles influence the person’s attitudes & self concept.
 Opinion leaders: - People within a reference group who, because of special skills, knowledge, personality or other characteristics, exert influence on others.
b) Family: - Family members can strongly influence buyer behavior. The family is the most important consumer buying organization is society & it has been researched extensive.
c) Roles & Status: -The personal position in each group can be defined in terms of both role & status. A role consists of the activities people are accepted to perform according to the persons around them.

• Personal factors: - A buyer decisions also are influenced by personal characteristics such as the buyer’s age & lifestyle cycle stage, occupation, economic situations, lifestyle, & personality & self- concept.

a) Age & lifestyle cycle stage: - People change the goods & services they buy over their lifetimes. Tastes in food, cloths, furniture & recreation are after age related. Buying is also shaped by the stage of the family life cycle.
b) Occupation: - A person’s occupation affects the goods & services bought. A blue collar worker tends to buy more sagged work clothes, whereas executives buy more business suites.

c) Economic situations: - A persons economic situations will affect product choice.

d) Lifestyle: - Lifestyle is a person’s pattern of living as expressed in his or her activities, interest, & opinions.

e) Personality & self concept: - Personality refers to the unique psychological changes that lead to relatively consistent & testing responses to his or her own environment
• Psychological factors: - A persons buying choices are further influenced by four major psychological factors – motivation, perception, learning, beliefs, and attitudes.
a) Motivation: - A need becomes a motive when it is around to a sufficient level of intensity. A motive is a need that is sufficiently pressing to direct the person to seek satisfaction need.
b) Perception: - The processes by which people select organize and interpreted information to form a meaningful picture of the world.
c) Learning: - Learning describes changes in an individual’s behavior arising from experience. Learning theorists say that most human behavior is learned.
d) Belief: - A belief is a descriptive thought that a person hold about something from his own mind.
e) Attitudes: - Attitude describes a person’s favorable or unfavorable evaluations filling & tendencies toward an object or idea.

# Name the types of buying decision behavior.
Ans: - Buying behavior differs greatly for a product to product. More complex decisions usually involve more buying participants & more buyer deliberations.
Significant differences between brands High involvement Low involvement
Complex buying behavior Variety seeking buying behavior
Few differences between brands Dissonance reducing buying behavior Habitual buying behavior

Complex buying behavior: - Consumer buying behavior in situation characterized by high consumer involvement in a purchases and significant perceived difference among brands.
Dissonance - reducing buying behavior: - Consumer buying behavior in situations characterized by high involvement but few perceived differences among brads.
Habitual buying behavior: - Consumer buying behavior in situations characterized by low consumer involvement & few significant perceived brand differences.
Variety seeking buying behavior: - Consumer buying behavior in situations characterized by low consumer involvement but significant perceived brand differences.

# The buying decision process. (Syllabus item)
Ans: - The buyer decision process consists of five stages: need recognition==> information search==> evaluation alternatives==> purchase decision ==> post – purchase behavior.
Clearly the buying process starts long before actual purchases & continuous long after. Marketers meet to focus on the entire buying process rather than on just the purchases decisions.
Need recognition: - The first of the buyer decisions process in which the consumer recognizes a problem or need.
Information search: - The stage of buyer decision process in which the consumer is aroused to search to more information, the consumer may simply have heightened attention or may go into active information search.
Evaluation of alternatives: - The stage of buyer decision process in which the consumer uses information to evaluate alternative brands in choice set.
Purchases decision: - The buyers decision about which brand to purchase.
Post – purchase behavior: - The stage of buyer decision process in which the consumers take further action after purchases based on their satisfaction or dissatisfaction.

* Cognitive dissonance: - Buyer discomfort caused by post – purchases conflict.




# The buyers decision process for new products/ services. (Syllabus item)
Ans: - A new product is a good, service, or idea that is perceived by some potential customer as new. When a new product is first time marketed the marketer need to understand consumer’s response about the product.

Adaptation process: - The mental process through which an individual passes from first hearing about an innovation to final adoption.
Stage in the adoption process: - Consumers go through five stages in the process of adopting a new product –
Awareness: - The consumer becomes aware of the new product but lacks information about it.
Interest: - The consumer seeks information about the new product.
Evaluation: - The consumer considers whether trying the new product makes scene.
Trial: - The consumer tries the new product on a small scale to improve his or her estimate of its value.
Adoption: - The consumer decides to make full and regular use of the new product.
This model suggests that the new product marketer should think about how to help consumers move through this stages.

# Individual differences in thovativeness.
# Influence of product characteristics on rate of adoption.
Ans: - The characteristics of the new product affect its rate of adoption. Some products catch on almost overnight, whereas other takes a long time a gain acceptance (HDTV). Five characteristics are especially important in influencing a rate of adoption. For example consider the characteristics of HDTV in relation to the rate of adoption.
1. Relative advantage: - The degree to which the innovation appears superior to existing products. The greater the perceived relative advantage of using HDTVs will be adopted.
2. Compatibility: - The degree to which the innovation fits the values & experiences of potential consumers. HDTV, for example, is highly compatible with the lifestyles found in upper middle – class homes. However, it is not very compatible with the programming & broadcasting system currently available to consumers.
3. Complexity: - The degree to which the innovation is difficult to understand or use. HDTVs are not very complex and, therefore, once programming is available & prices come down will take less time to penetrate U.S. homes than, ore complex innovations.
4. Divisibility: - The degree to which the innovation may be tried on a limited basis. HDTVs are still very expensive. To the extent that people can lease then an option to buy, their rate of adoption will increase.
5. Combinability: - The degree of which the results of using the innovation can be observed or described to others. Because HDTV lends itself to demonstration & description, its use will spread faster among consumers.
Other characteristics influence the rate of adoption, such as initial & ongoing costs, risks & uncertainty, and social approval. The new – product marketers has to research all these factors when developing the new product and its marketing program.

# Explains influence of product of characteristics on rate of adoption.
Ans: - The characteristic of the new product affects its rate of adoption. Some products catch on almost overnight whereas others take a long time a gain acceptance (HDTV). Five characteristics are especially important in influencing an innovations rate of adoption. For example, consider the characteristics of HDTV in relation to the rate of adoption.
1. Relative Advantage: - The degree to which the innovation appears superior to existing products. The grater the perceived relative advantages of using HDTV say in picture quality & ease of viewing – the sooner HDTVs will be adopted.
2. Compatibility: - The degree to which the innovation feeds the values & experiences of potential consumers. HDTV for example is highly compatible with the lifestyles found in upper middle – class homes. However, it is not very compatible with the programming & broadcasting systems currently available to consumers.
3. Complexity: - The degree to which the innovation is difficult to understand or use. HDTVs are not very complex and therefore once programming is available and prices come down will take less time to penetrate U.S. homes than more complex innovations.
4. Divisibility: - The degree to which the innovation may be tried on a limited basis. HDTVs are still very expensive. To the extend that people can lease then an option to buy, their rate of adoption will increases.
5. Communicability: - The degree to which the results of using the innovation can be observed or described to others. Because HDTV lends itself to demonstration & description its use will spread faster among consumers.
Other characteristics influence the rate of adoption such as initial & ongoing costs, risk & uncertainty, and social approval. The new product marketers have to research all these factors when developing the new product & its marketing program.

Marketing Environment

# The Micro & Macro marketing environment. (Syllabus item)
Ans:- Marketing environment consists of the actors & forces outside marketing that affect marketing ability to develop & maintain successful transactions with its target customer. The marketing environment is made up two environmental conditions. They are –
1. Micro-environment
2. Macro-environment

1. Micro-environment: - The macro-environment consists of the actors that are related closely to the company that affect its ability to serve its consumers- the company, suppliers, intermediaries, customer, competitors & publics.
• Company: - Functional areas such as top management, finance & marketing etc.
• Suppliers: - Provide the resources needed by company to produce its goods & services.
• Marketing intermediaries: - Help the company to promote, sell & distribute its goods to find buyers such as physical distribution firms, marketing service agencies & financial intermediaries.
• Customers: - The Company needs to study five types of customer market closely. Such as; consumer market, industrial market, reseller market, Govt. market & international market.
• Competitors: - Those who serve a target market with similar products & service.
• Public: - The Company’s marketing environment also includes various public. A public is any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives. We can identify seven types of public: - financial, media, Govt., citizen-action, local, general, internal publics.
2. Macro-environment: - The macro-environment consists of the large societal forces that affect the macro-environment demographic, economic, natural, technological, political & cultural forces.

* Demographic: - The study of human, population in terms of size, density, location, age, gender, occupation & other statistics. Key demographic trends of Bangladesh.
* Changing age structure * Geographic shifts in population
* Changing family structure * Increased education.
* Economic: - Factors that affect consumer buying power & spending patterns. Key terms – A) Subsistence Vs industrial economy B) Changes of income C) Changing consumer spending pattern.

• Natural: - Natural resources that are needed as inputs by marketers or that are affected by marketing activities. Shortages of raw materials, increased cost of energy, increased pollution, and increased Govt. intervention affected natural environment.
• Technological: - Forces that create new technological product & market opportunities. It perhaps the most force now shaping our destiny.
• Political: - The political environment consists of laws, Govt. agencies, & pressure groups that influence or limit various organizations & individuals in a given society. Increasing legislation; regulations are to protect companies, consumers & society, changing Govt. agency enforcement, federal trade commission, the food & drug administration etc.
• Cultural: - The cultural environment is made up of institutions & other forces that affect a society basic values, perceptions, preferences & behaviors. Persistence of cultural values shift in secondary cultural values, core beliefs, and secondary beliefs affected it.

# Identify the major trends in the firm’s natural & technological environment.
Ans: - The natural environment shows the three major trends – Shortage of certain raw materials, higher pollution levels & More Govt. intervention in natural resources mgt. Environment concern, create marketing opportunities for alter companies. The market should watch for four major trends in the technological environment - the rapid pace of tech. change, high R & D budgets, the concentration by companies on minor product improvements, & increased Govt. regulation companies that fail to keep up with technological change will miss out on new product & marketing opportunities.

# How changes in the demographic environment affect marketing decisions?
Ans: - Demography is the study of the characteristics of human populations. Today’s demographic environment shows a changing age structure, shifting family profits, geographic population shift, a better-educated & more collar population, & increasing diversity.

# Discuss how companies can react to the marketing environment.
Ans: - Companies can passively accept the marketing environment as an uncontrollable element to which they must adapt, avoiding threats & taking advantage of opportunities as they can take a proactive stance working to change the environment rather than simply reacting to it. Whenever possible, companies should try to be proactive rather than reactive.

Foundations of Marketing

# Definition of marketing. (Syllabus item)
Ans:- we define marketing as a social & managerial process by which individuals & groups obtain what they need & want through creating & exchanging products & value with others. Hence, we define marketing as the process by which companies’ create value for customers & build strong customer relationships in order to capture value from customers in return.

#Scope of marketing. (Syllabus item)
Ans:- Marketing is a total system of business activities designed to plan, price, promote & distribute want satisfying product to target markets to achieve organizational goal. About the scope of marketing is discussed widely in below –
1. Marketing activities: - Marketing activities mean different activities accomplished from producer to customer. Mainly include in the activities buying, selling, storage, transportation, grading, risk taking, market information, financing etc.
2. Marketing mix: - The combination of four P’s are called marketing mix. The 4P’s are interrelated & must be balanced into one integrated whole to satisfy some target markets need & preference. All present time marketing mix also recognizes 4C’s. They are customer solution, cost, convenience & communication. The 4P’s are product, place, price, & promotion.
3. Pre-plan of Production: - According to marketing pre-plan of production is the process of collecting industrial goods & pre-goods of production.
Marketing ==> Production ==> Demand ==> Consumption ==> Production.
4. Business activity: - All present any countries business activity is include in marketing activities.
5. Organizational marketing: - Which orgn control & govern the activities of flow of goods that is called orgnal marketing e.g. retailer, broker, T.C.B. etc.
6. Management process: - Marketing is connected with different ethic method of management. The management process, as applied to marketing, consists basically
• Planning a marketing program (develop strategic plan, marketing plan)
• Implementing it & (carry out the plan)
• Evaluating its performance. ( Measurement of result, evaluate the result)
7. Economic process: - Marketing process is governed by economic activity. Marketing is the creation of place, time & possession utilities.
8. Social process: - Marketing is human activity directed at satisfying needs & wants through exchange process.

# Modern functions of marketing. (Syllabus item)
Ans:- Marketing include those business activities to the flow of goods & services between producers & consumers. Marketing activities can be classified in three types-
*. Exchanging function
*. Distribution function
*. Subsidiary function
*. Exchanging function:-
1. Purchase: - An important activity of marketing is purchasing. Ownership of goods, services changed by purchasing process. Marketing activities start by purchasing.
2. Sales: - Most important activity of marketing is sales because other elements of marketing are connected with sales.
3. Propriety transfer: - Transfer of ownership is closely related with propriety transfer.
4. Transfer of risk: - Risk of a good is transferred to buyer on the time of transfer of ownership of goods. Any uncertainty creates risk.
5. Giving advice: - Marketers give advice to buyers about use of goods, quality, plan etc. A good relation is build up among the seller & buyer by this activity.

*. Distribution function: -
1. Standardization & grading: - It is important activity in marketing. The process of setting goods according on its original quality that is called grading.
2. Transportation: - Transportation is another important activity of marketing. It creates place activity.
3. Warehousing: - Warehousing create time utility of a product.
4. Packaging: - Packaging protects quality of the goods & prevent spoilt of the product.
5. Collection of goods: - One type of goods collect from different place & stock in one place that is collection of goods.

*. Subsidiary function: -
1. Financing: - Marketer collects money from different source. It could be long term or short term. This collection of money is called financing.
2. Collection of market information: - To research & analysis market condition collection of market information helps.
3. Fixation of policy: - Another important activity of marketing is fixation of policy.
4. Service given: - Another important activity of marketing is service given. Good service creates good sales.
5. Create market: - Create new market of a good is one of the important tasks of marketing.

# What are the philosophy / concept of marketing?
Ans: - Marketing concept is a customer orientation blocked by integrated marketing aimed at generating satisfaction as the key to satisfying orgnal goal. Marketing activity govern by five concept. They are given below –
1. Production concept: - The production concept holds the idea that customers will favor product that are available & highly affordable.
2. Product concept: - The product concept holds the idea that consumers will favor products, that offer the most in quality, performance, & features & that the orgn should therefore devote its energy to making continuous product improvements.
3. Selling concepts: - Many companies follow the selling concept, which hold the idea that consumers will not buy enough of the firm’s products unless it undertakes a large-scale’s selling & promotion effort.
4. Marketing concept: - The marketing concept holds the idea that achieving orgnal goals depends on knowing the needs & wants of target markets & delivery the desired satisfactions better than competitors do.
5. Societal marketing concept: - A principle of enlightened marketing that holds that a company should make good marketing decision by considering customers wants, the company’s requirements, consumers long- run interests & society’s long-run interests.

# Marketing system & Goals. (Syllabus item)
Ans: - The main goal of marketing is to earn profit through customer satisfaction. Method of marketing doesn’t influenced only buyers & sellers it also influenced different classes of people in society. The goals of marketing system are given below-
• Maximize consumption: -
Main activity of marketing is that reached the customer consumption to raise higher level. Because people expense, buy & consume as much as more & become so happy. Marketing do maximize consumption of consumers by two way->

a) Mass production: - If a product produce in large scale of production cost its cost is redact & its price is also redact. In this condition customer demand also increases.
b) Proper distribution: - Proper distribution of the product creates maximize consumption of the customers.

• Maximize consumer’s satisfaction: -
It is another important target of marketing activities. Maximize consumers satisfactions are discussing below: -
a) Creation new utilities of production: - New utilities of production creates maxim satisfaction of a consumers
b) Adjusting demand & supply: - Marketing maintains balance between demand & supply.

• Maximize Choice: - Main target of marketing should be variation of goods. Because consumers can purchase his goods according on his choice & personality.

a) Expanding Market: - Consumers choice is increasing by create new market of product.

b) Improving standard of living: - Marketing help the people to improve their standard living & it increase maxim choice of product.
• Maximize of life quality: - Marketing help to maximize life quality of people. People’s life quality is increase in this way.

a) Economic development: - Which countries economic condition is so developed that countries people’s life quality is also developed. Which country’s marketing condition developed that country’s economy is also developed.
b) Arranging employee: - Marketing do important task to solve unemployment problem of a country.

# What is the marketing system?
Ans: - Marketing system is the process of reaching goods & services from producer, consumers & internal connection with all related party.





# Marketing Mix. (Syllabus item)
Ans: - Marketing mix is the set of controllable, technical marketing tools that the firm blends to produce the response it wants in the target market. A company designs a marketing mix made up of four factors. They are-

1. Product: - Product means the goods & services combination the company offers to the target market.
2. Price: - Price is the amount of money customers have to obtain the amount.
3. Place: - Place includes company activities that make the product available to target market.
4. Promotion: - Promotion means activities that communicate the merits of the product & persuade target customers to buy it.

# Identify the five core concepts of marketplace.
Ans: - The core marketplace concepts are needs, wants & demands, marketing offers (Products, services & experience), value & satisfaction, exchange and relationship and markets. Wants are the form taken by human needs when shaped by culture & individual personality. When backed by buying power, wants become demands companies address needs by putting forth a value proposition, a set of benefits that they promise to consumers to satisfy their needs. The value proposition is fulfilled through a marketing offer that delivers customer value & satisfaction, resulting in long term exchange with customers.

# What is customer relationship management, customer perceived value & customer satisfaction?
Ans: - Customer Relationship Management: - The overall process of building & maintaining profitable customer relationship by delivering superior customer value & satisfaction.
Customer Perceived Value: - The difference between total customer value & total customer cost.
Customer Satisfaction: - The extent to which a product’s perceived performance matches a buyer’s expectations.

# Describe about marketing strategy.
Ans: - Marketing strategy means the marketing logic by which the business unit hopes to achieve its marketing objectives. Companies know that the can not profitably serve all consumers in a given market at least not at all consumers in the same way. There are too many different kinds of consumers with too many different kinds of needs. And most companies are in a position to serve some segments being better than others. Thus, each company must divide up the total market, choose the best segments, and design strategies for profitably serving chosen segments. This process involves three steps –
1. Market segmentation: - Dividing a market into distinct groups of buyers who have distinct needs characteristics, on behavior & who might require separate products or marketing mixes.
2. Target marketing: - The process of evaluating each market segments attractiveness & selecting one or more segments to enter.
3. Market positioning: - Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.