11. Explain the following: a. b. c. d.

Product Concept Production Concept Sales Concept Marketing Concept

Product Concept: Product concept is the understanding of the dynamics of the product in order to showcase the best qualities and maximum features of the product. Marketers spend a lot of time and research in order to target their attended audience. Marketers will look into a product concept before marketing a product towards their customers. While the "product concept" is based upon the idea that customer prefers products that have the most quality, performance, and features, some customers prefer a product that is simpler and easier to use. This orientation holds that consumers will favor those products that offer the most quality, performance, or innovative features. Managers focusing on this concept concentrate on making superior products and improving them over time. They assume that buyers admire well-made products and can appraise quality and performance. However, these managers are sometimes caught up in a love affair with their product and do not realize what the market needs. Management might commit the better-mousetrap fallacy, believing that a better mousetrap will lead people to beat a path to its door. The product concept holds that the market would definitely patronize that product perceived as of higher quality, standard and hygienic, product that can match with their styles while satisfying their needs and want. Market organizations haven fully understand this concept, devote their time, energy and resources in developing good and quality products that can satisfy the desires of the target Market. Production Concept: This concept is the oldest of the concepts in business. It holds that consumers will prefer products that are widely available and inexpensive. Managers focusing on this concept concentrate on achieving high production efficiency, low costs, and mass distribution. They assume that consumers are primarily interested in product availability and low prices. This orientation makes sense in developing countries, where consumers are more interested in obtaining the product than in its features. The concept of production in marketing means that marketers should employ effective strategies to making their products available and affordable in the market because the consumers will only choose that product available and affordable. Those companies who believe in this philosophy think that if the goods/services are cheap and they can be made available at many places, there cannot be any problem regarding sale. Keeping in mind the same philosophy these companies put in all their marketing efforts in reducing the cost of production and strengthening their distribution system. In order to reduce the cost of production and to bring it down to the minimum level, these companies indulge in large

scale production. helps them in effecting the economics of the large scale production. Consequently, the cost of production per unit is reduced. The utility of this philosophy is apparent only when demand exceeds supply. Its greatest drawback is that it is not always necessary that the customer every time purchases the cheap and easily available goods or services. Sales Concept: This is another common business orientation. It holds that consumers and businesses, if left alone, will ordinarily not buy enough of the selling companys products. The organization must, therefore, undertake an aggressive selling and promotion effort. This concept assumes that consumers typically sho9w buyi8ng inertia or resistance and must be coaxed into buying. It also assumes that the company has a whole battery of effective selling and promotional tools to stimulate more buying. Most firms practice the selling concept when they have overcapacity. Their aim is to sell what they make rather than make what the market wants. Those companies who believe in this concept think that leaving alone the customers will not help. Instead there is a need to attract the customers towards them. They think that goods are not bought but they have to be sold. The basis of this thinking is that the customers can be attracted. Keeping in view this concept these companies concentrate their marketing efforts towards educating and attracting the customers. In such a case their main thinking is selling what you have. This concept offers the idea that by repeated efforts one can sell-anything to the customers. This may be right for some time, but you cannot do it for a long-time. If you succeed in enticing the customer once, he cannot be won over every time. On the contrary, he will work for damaging your reputation. Therefore, it can be asserted that this philosophy offers only a short-term advantage and is not for long-term gains. Marketing Concept: This is a business philosophy that challenges the above three business orientations. Its central tenets crystallized in the 1950s. It holds that the key to achieving its organizational goals (goals of the selling company) consists of the company being more effective than competitors in creating, delivering, and communicating customer value to its selected target customers. The marketing concept rests on four pillars: target market, customer needs, integrated marketing and profitability. The Marketing Concept represents the major change in todays company orientation that provides the foundation to achieve competitive advantage.

12. Explain STP (Segmentation, Targeting and Positioning)

Segmentation: Segmenting is the process of dividing the market into segments based on customer characteristics and needs. The main activity segmenting consists of four sub activities. These are: 1. Determining who the actual and potential customers are 2. Identifying segments 3. Analyzing the intensity of competitors in the market 4. Selecting the attractive customer segments. The first, second and fourth steps are described as market segmentation. The third step of analyzing the intensity of the competitors is added to the process of segmenting in this process description. When different segments are identified, it is not necessary that these segments are attractive to target. A company is almost never alone in a market -- competitors have a great influence on the attractiveness of entering a certain market. When there is a high intensity of competitors, it is hard to obtain a profitable market share and a company may decide not to enter a certain market. The third step of segmenting is the first part of the topic of competitor analysis. The need for segmenting a market is based on the fact that no market is homogeneous. For one product the market can be divided in different customer groups. The variables used for this segmenting in these groups are usually geographical, psycho graphical, behavioral and demographic variables. This results in segments which are homogeneous within and heterogeneous between each other. When these segments are known, it is important to decide on which market to target. Not every market is an attractive market to enter. A little filtering has been done in this activity, but there are more factors to take in account before targeting a certain market segment. This process is called targeting. The first step in the process of product promotion is Segmentation. The division of a broad market into small segments comprising of individuals who think on the same lines and show inclination towards similar products and brands is called Market Segmentation. Market Segmentation refers to the process of creation of small groups (segments) within a large market to bring together consumers who have similar requirements, needs and interests. The individuals in a particular segment respond to similar market fluctuations and require identical products. In simpler words market segmentation can also be called as Grouping. Kids form one segment; males can be part of a similar segment while females form another segment. Students belong to a particular segment whereas professionals and office goers can be kept in one segment. Targeting: After the most attractive segments are selected, a company should not directly start targeting all these segments -- other important factors come into play in defining a target market. Four sub activities form the basis for deciding on which segments will actually be targeted.

The four sub activities within targeting are: 1. Defining the abilities of the company and resources needed to enter a market 2. Analyzing competitors on their resources and skills 3. Considering the companys abilities compared to the competitors' abilities 4. Deciding on the actual target markets. The first three sub activities are described as the topic competitor analysis. The last sub activity of deciding on the actual target market is an analysis of the company's abilities to those of its competitors. The results of this analysis lead to a list of segments which are most attractive to target and have a good chance of leading to a profitable market share. Obviously, targeting can only be done when segments have been defined, as these segments allow firms to analyze the competitors in this market. When the process of targeting is ended, the markets to target are selected, but the way to use marketing in these markets is not yet defined. To decide on the actual marketing strategy, knowledge of the differential advantages of each segment is needed. Once the marketer creates different segments within the market, he then devises various marketing strategies and promotional schemes according to the tastes of the individuals of particular segment. This process is called targeting. Once market segments are created, organization then targets them. Targeting is the second stage and is done once the markets have been segmented. Organizations with the help of various marketing plans and schemes target their products amongst the various segments. Nokia offers handsets for almost all the segments. They understand their target audience well and each of their handsets fulfils the needs and expectations of the target market. Tata Motors launched Tata Nano especially for the lower income group. Positioning: When the list of target markets is made, a company might want to start on deciding on a good marketing mix directly. But an important step before developing the marketing mix is deciding on how to create an identity or image of the product in the mind of the customer. Every segment is different from the others, so different customers with different ideas of what they expect from the product. In the process of positioning the company: 1. Identifies the differential advantages in each segment 2. Decides on a different positioning concept for each of these segments. This process is described at the topic positioning; here different concepts of positioning are given. The process-data model shows the concepts resulting from the different activities before and within positioning. The model shows how the predefined concepts are the basis for the positioning statement. The analyses done of the market, competitors and abilities of the company

are necessary to create a good positioning statement. When the positioning statement is created, one can start on creating the marketing mix. Positioning is the last stage in the Segmentation Targeting Positioning Cycle.Once the organization decides on its target market, it strives hard to create an image of its product in the minds of the consumers. The marketers create a first impression of the product in the minds of consumers through positioning. Positioning helps organizations to create a perception of the products in the minds of target audience. Ray Ban and Police Sunglasses cater to the premium segment while Vintage or Fastrack sunglasses target the middle income group. Ray Ban sunglasses have no takers amongst the lower income group. Garnier offers wide range of merchandise for both men and women.Each of their brands has been targeted well amongst the specific market segments. (Men, women, teenagers as well as older generation) Men - Sunscreen lotions, Deodorant Women - Daily skin care products, hair care products Teenagers - Hair colour products, Garnier Light (Fairness cream) Older Generation - Cream to fight signs of ageing, wrinkles A female would never purchase a sunscreen lotion meant for men and vice a versa. Thats brand positioning.

13. What is positioning? Who is a prospect? A Positioning Concept attempts to sell the benefits of the product or service to a potential buyer. The positioning concepts focus on the rational or emotional benefits that buyer will receive or feel by using the product/service. A successful positioning concept must be developed and qualified before a "positioning statement" can be created. The positioning concept is shared with the target audience for feedback and optimization. When the list of target markets is made, a company might want to start on deciding on a good marketing mix directly. But an important step before developing the marketing mix is deciding on how to create an identity or image of the product in the mind of the customer. Every segment is different from the others, so different customers with different ideas of what they expect from the product. Effective Brand Positioning is contingent upon identifying and communicating a brand's uniqueness, differentiation and verifiable value. It is important to note that "me too" brand positioning contradicts the notion of differentiation and should be avoided at all costs. This type of copycat brand positioning only works if the business offers its solutions at a significant discount over the other competitor. Generally, the brand positioning process involves: Identifying the business's direct competition (could include players that offer your product/service amongst a larger portfolio of solutions) Understanding how each competitor is positioning their business today (e.g. claiming to be the fastest, cheapest, largest, the #1 provider, etc.) Documenting the provider's own positioning as it exists today (may not exist if startup business) Comparing the company's positioning to its competitors' to identify viable areas for differentiation Developing a distinctive, differentiating and value-based positioning concept Creating a positioning statement with key messages and customer value propositions to be used for communications development across the variety of target audience touch points (advertising, media, PR, website, etc.). Prospect: A prospect is a potential customer or sales lead which has been qualified as fitting certain criteria. This may include: fitting the target market, having buying authority and being a key decision maker. To become a prospect, an indicated interest in the product or service being offered is not always necessary. Once qualification criteria are met, the lead is then converted into a "prospect" (a potential customer). The selling phase begins AFTER the prospecting phase. A properly qualified sales prospect has a great chance of earning future sales and moving on to become a long-term

customer of the company. Potential customer or client qualified on the basis or his or her buying authority, financial capacity, and willingness to buy.

14. What is Unique Selling Proposition? What do you mean by Value Proposition? What are me too Product? Unique Selling Proposition: A unique selling proposition (USP) is a description of the qualities that are unique to a particular product or service and that differentiate it in a way which will make customers purchase it rather than its rivals. Marketing experts used to insist that every product and service had to have a USP, at least one unique feature that could be distilled into a 60-second sales spiel, the equivalent of a single written paragraph. But this idea was usurped by the view that what really matters in marketing a product or service is its positioning, where it sits on the spectrum of customer needs. Shampoos, for instance, claim to meet all sorts of different customer needs and sit in all sorts of different positionsthe need to wash dry hair or greasy hair, dark hair or blond hair, or the need to wash hair frequently or not so frequently. Few of them, however, can claim to have a unique selling proposition. All of them clean hair. Uniqueness is rare, and coming up with a continuous stream of products with unique features is, in practice, extremely difficult. Philip Kotler says that the difficulty firms have in creating functional uniqueness has made them focus on having a unique emotional selling proposition (an ESP) instead of a USP. He gives the example of the Ferrari car and the Rolex watch. Neither has a distinctive functional uniqueness, but each has a unique emotional association in the consumer's mind. A unique selling proposition is what your business stands for. Its what sets your business apart from others because of what your business makes a stand about. Instead of attempting to be known for everything, businesses with a unique selling proposition stand for something specific, and it becomes what youre known for. Value Proposition: A value proposition is a promise of value to be delivered and a belief from the customer that value will be experienced. A value proposition can apply to an entire organization, or parts thereof, or customer accounts, or products or services. A business or marketing statement that summarizes why a consumer should buy a product or use a service. This statement should convince a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings. Companies use this statement to target customers who will benefit most from using the company's products, and this helps maintain an economic moat. The ideal value proposition is concise and appeals to the customer's strongest decision-making drivers. Companies pay a high price when customers lose sight of the company's value proposition. A value proposition is a statement that clearly identifies what benefits a customer will receive by purchasing a particular product or service from a particular vendor.

A value proposition, which is an essential element of an elevator pitch, should be simple and easy to remember. It should emphasize both the benefits the customer will receive and the price the customer will be charged as compared to the competition. An important goal of a value proposition is to convince the customer that he will be getting many more benefits than he is being asked to pay for.

Me too Product: A product that is very similar to products manufactured by other companies and already on the market. For example, a toy manufacturer observes the immense popularity of a competitor's product and decides to produce its own version that is virtually identical.

15.

What are five different objectives of advertising?

Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services through mass media such as newspapers, magazines, television or radio by an identified sponsor". Advertising objectives fall into five main categories:

(a) To inform - e.g. tell customers about a new product (b) To persuade - e.g. encourage customers to switch to a different brand (c) To remind - e.g. remind buyers where to find a product (d) To adding value - e.g. cost and benefit analysis in customers mind (e) To assisting other company efforts - e.g. increase brand preference and loyalty, expand the product distribution, reduce overall sales cost, Creates new demands etc. The main function of advertising is to communicate information about the product, its attributes, and its location of sale; this is the information function. Product information communicated to the customers in manner that meets their information needs. Most consumers tend to discount the information in advertising because they understand that the purpose of the advertising is to persuade. Making an advertising message believable is not easy; though often it is sufficient to make the consumer curious enough to try the product. Such curiosity is often referred to as interested disbelief. Advertisers use a variety of devices to increase the believability of their advertising: celebrities or experts who are the spokespersons for the product, user testimonials, product demonstrations, research results, and endorsements. An advertising plan consists of the following elements: advertising goals stated in terms of marketing goals and objections (these goals are communication); market segmentation (to define the market via demographic, geographic and psychographic factors); a budget; product differentiation (emphasizes product differentiation based on consumer perception these can be tangible or intangible such as style and image) but ultimately it is important that the customer can differentiate this product from others; the creative efforts; the media to be used for the campaign. Advertising has communication objectives designed to accomplish certain tasks within the total marketing program and is a marketing tool that is more effective when used to sole narrowly defined communication issues (i.e., create brand awareness which is a preference for a brand that leads to an increased share of the market, which in term increases profitability).

To be successful, advertising must exhibit a creative executive to gain the consumers attention and reach potential customers in an appropriate environment at a proper time. If the message is received when the target market is busy or not available, it makes no impact. An advertisement is a specific message while an advertising campaign is a series of coordinated advertisements that communicate a theme or idea. An audience is a group of individuals who receive and interpret messages sent from advertisers. A target audience is a particular group of consumers who are most intended to receive the message. It is an attempt to persuade, that is, to get someone to do something. Even it the ad is purely informational, it is still designed to get consumers to like the brand/company/person.

16. Explain: FMCG & FMCD

Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are sold quickly and at relatively low cost. Examples include non-durable goods such as soft drinks, toiletries, and grocery items. Though the absolute profit made on FMCG products is relatively small, they are generally sold in large quantities, and so the cumulative profit on such products can be substantial. Fast-moving consumer electronics are a type of FMCG and are typically low priced generic or easily substitutable consumer electronics, including lower end mobile phones, MP3 players, game players, and digital cameras, which have a short usage life, typically a year or less, and as such are disposable. Cheap FMCG electronics are often retained even after immediate failure, as the purchaser rationalizes the decision to not return the goods on the basis that the goods were cheap to begin with, and that the cost of return relative to the low cost of purchase is high. The term FMCGs refers to those retail goods that are generally replaced or fully used up over a short period of days, weeks, or months, and within one year. This contrasts with durable goods or major appliances such as kitchen appliances, which are generally replaced over a period of several years. FMCG have a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly. Some FMCGssuch as meat, fruits and vegetables, dairy products, and baked goodsare highly perishable. Other goods such as alcohol, toiletries, pre-packaged foods, soft drinks, and cleaning products have high turnover rates. An excellent example is a newspaperevery day's newspaper carries different content, making one useless just one day later, necessitating a new purchase every day. A durable goods or a hard good is a good that does not quickly wear out, or more specifically, one that yields utility over time rather than being completely consumed in one use. Items like bricks could be considered perfectly durable goods, because they should theoretically never wear out. Highly durable goods such as refrigerators, cars, or mobile phones usually continue to be useful for three or more years of use, so durable goods are typically characterized by long periods between successive purchases. Examples of consumer durable goods include cars, household goods (home appliances, consumer electronics, furniture, etc.), sports equipment, firearms, and toys. A durable goods or a hard good is a good that yields utility over time rather than being completely consumed in one use.

Unlike most fast-moving consumer goods, products in the durable goods sector are made to last a very long time. A few outstanding durable-goods companies have consistently introduced exciting, distinctive, and interesting products by focusing on a shortlist of actions that can be adapted for any category fighting to claim a spot in todays crowded marketplace.

20. What are low involvement and high involvement product? High involvement product: They are products with high capital value goods or services that are psychological important to the buyer because they address social or ego needs and therefore carry social and psychological risk. The buyer is prepared to spend careful, considerable time and effort in searching for the right and most suitable product. They are all expensive products, purchases which tend to be linked to high cost where the advertising is focus on visual and emotional appeals. Lots of celebrity endorsements are used. The products are mostly found at specific locations: showrooms, specialized guide books/ booklets/ magazines and own website (with reference to the brand name)

Some examples of high involvement products are: For individuals * Cars, Jewelries, Weddings, Holiday travel plans, House, etc. For businesses * Office design, Technological infrastructures, Advertising, Hiring of employees (in a certain limit), etc. Low involvement products: These are products which are brought frequently and with a minimum of thought and effort because they are not of vital concern nor have any great impact on the consumers lifestyle. The buyer does not associate any risk while purchasing these products as it is often habit buying products. The prices are relatively low, the typical advertising role is to get consumer to sample or switch product thus breaking the habit of spending money with the competitor. Tactical approaches like coupons, sales/discount promos or any other incentives are often used. They are found and displayed easily everywhere, availability is the must.

Some examples of low involvement products: Bread, Toothpaste, Chewing gums, Stationeries (pens, staples, paper, etc.), Cigarettes, Movies, Candies, etc.