Marketing Flashcards
What is the definition of Promotion Mix?
Promotion mix involves promotional tools of an organization that help it achieve its communication objectives.
What are the types of communication tools under the promotion mix?
- Advertising
- Personal Selling
- Sales Promotion
- Publicity
What are the distinguishing features of advertising?
- It is a paid form of communication
- Has an identified sponsor
- Is impersonal (no direct contact between consumer and advertiser)
What are the merits of advertising?
- Wider reach
- Very expressive
- Builds consumer confidence (assures product quality)
- Economical due to economies of scale (low per-unit cost of communication)
What are the objections to advertising?
- Adds to cost
- Undermines social values
- Confuses the buyer
- Encourages sale of inferior products
How do proponents respond to the objection: ‘Advertising adds to the cost’?
Advertising increases demand and enables economies of scale. Though it adds to total cost, the per-unit cost decreases, reducing the burden on consumers.
How do proponents respond to the objection: ‘Advertising undermines social values’?
Advertising merely informs; the final decision lies with the consumer. It can even motivate people to work harder to achieve a better lifestyle.
How do proponents respond to the objection: ‘Advertising confuses the buyer’?
Rational consumers can research before purchasing. While confusion can occur, it’s not the fault of advertising alone.
How do proponents respond to the objection: ‘Advertising encourages sale of inferior products’?
Advertisements should not make false claims. If they do, firms can be legally prosecuted. Consumers have legal protections.
What is Personal Selling?
A personal form of communication involving oral presentation with one or more prospective buyers to make sales.
What are the features of personal selling?
- Personal (face-to-face interaction)
- Relationship-oriented (builds rapport and trust)
What are the merits of personal selling?
- Flexible (can adapt to individual needs)
- Direct feedback (real-time customer reactions)
- Minimum wastage (targeted efforts)
What is the CUET-ready summary of the Role of Personal Selling?
To Businessmen: Builds relationships, flexible communication, gathers market feedback
To Customers: Aids buying decisions, provides personal attention, reliable info
To Society: Creates jobs, promotes causes, encourages informed decision-making, supports product standardization
What is Sales Promotion?
Sales promotion refers to short-term incentives designed to encourage immediate purchase of a product or service.
Why is sales promotion used?
It is used to supplement other promotional tools like advertising and personal selling.
What are some common sales promotion tools?
- For customers: free samples, discounts, contests
- For dealers: cooperative advertising, dealer contests
- For salespeople: bonuses, contests
What are the merits of sales promotion?
- Attention value (grabs interest)
- Helps in new product launch
- Synergizes with other promotional tools
What are the limitations of sales promotion?
- Reflects crisis (overuse may signal poor sales)
- Spoils product image (lowers perceived quality)
What are commonly used sales promotion techniques?
- Rebate
- Discount
- Refund
- Product Combination
- Quantity Gift
- Instant Draws & Assigned Gifts
- Lucky Draw
- Usable Benefit
- Full Finance at 0%
- Sampling
- Contest
What is Publicity?
Publicity occurs when favorable news about a product/service is presented in the mass media. It is unpaid and has no identified sponsor.
What are the merits and limitations of publicity?
Merits: More credible, reaches uninterested audience
Limitation: No control over message or timing
What is Public Relations and why is it important in marketing?
PR is the management of communication between an organization and the public to build a favorable image. It helps build goodwill, prevents negative publicity, and advises management on image-enhancing programs.
What is the role of Public Relations in business?
- Press Relations – Share true/favorable news
- Product Publicity – Generate interest via media by arranging events such as exhibitions, conferences and seminars.
- Corporate Communication – Maintain communication via brochures. Newsletters, annual reports, articles and audio visual materials etc.; influences target market
- Lobbying – Represent business to govt; govt also seeks feedback when framing policies
- Counseling – Advise mgmt; promote goodwill via cause-related efforts like environment, children’s rights, education etc.
How does maintaining good public relations help in achieving marketing objectives?
- Building Awareness – Generate attention via media/events
- Building Credibility – Endorsements feel more trustworthy
- Stimulating Sales Force – Positive image eases selling
- Lowering Promotion Costs – Favorable media is cost-effective
What does market offering include?
Market offering refers to everything a company offers to satisfy a customer’s need or want — including product, price, place, promotion, features, branding, services, and availability.
Does market offering refer only to the price of a product?
No. Price is just one part. Market offering includes the entire value proposition — product features, brand, price, accessibility, and services.
What is the meaning of standardization in marketing?
Standardization is the process of setting uniform specifications for products to ensure consistency in quality, size, features, or performance.
What is grading in marketing?
Grading is the classification of products (especially agricultural goods) into categories based on quality or characteristics like size, color, and shape.
What is the key difference between standardization and grading?
Standardization ensures uniformity; grading enables quality-based categorization. Standardized products look the same; graded ones are grouped by quality.
Example of standardization?
All bulbs of a brand having the same voltage and cap size.
Example of grading?
Sorting apples into Grade A, B, and C based on size and ripeness.
What are the features of marketing according to NCERT?
- Needs and Wants: Marketing focuses on satisfying customer needs and wants.
- Creating a Market Offering: Marketing involves offering a product/service that satisfies needs.
- Customer Value: Marketing aims at delivering value better than competitors.
- Exchange Mechanism: It involves voluntary exchange of goods/services for money or something of value.
- Ongoing Process: Marketing is a continuous process to maintain consumer relationships.
What is meant by creating a market offering?
It refers to providing a complete offer including product, price, promotion, and place that is perceived valuable by the target market.
How does marketing focus on customer value?
By understanding customer preferences and delivering value through product features, price, convenience, and promotion better than competitors.
What is the importance of exchange in marketing?
Exchange is a key element where buyers and sellers willingly give something of value to obtain a desired product or service.
Why is marketing considered a continuous process?
Because it involves ongoing planning, implementation, and feedback collection to maintain customer satisfaction and competitiveness.
What are the functions of marketing as per NCERT?
- Gathering and Analysing Market Information
- Marketing Planning
- Product Designing and Development
- Standardisation and Grading
- Packaging and Labelling
- Branding
- Customer Support Services
- Pricing of Products
- Promotion and Selling
- Physical Distribution
- Transportation
- Storage
What is the role of market information gathering?
It helps in identifying customer needs, market trends, and competitor strategies to make informed marketing decisions.
What does marketing planning involve?
It involves developing strategies for marketing activities including targeting, positioning, and resource allocation.
What is standardisation?
It means setting quality standards for a product to ensure uniformity and consistency in output.
What is grading in marketing?
It is the process of classifying products into categories based on quality, size, or other features—especially used in agricultural goods.
What is the role of packaging and labelling in marketing?
Packaging protects the product and attracts customers; labelling provides legal and informative details to the buyer.
What is branding and why is it important?
Branding involves creating a unique name/symbol for a product to differentiate it. It builds trust, loyalty, and market recognition.
What are customer support services in marketing?
These include after-sales service, handling complaints, providing maintenance support — crucial for customer satisfaction and retention.
Why is pricing an important function of marketing?
It affects demand, profitability, and competitive positioning. Price must reflect product value while considering cost, competition, and market demand.
What does physical distribution refer to?
It involves decisions related to channels of distribution and logistics to make the product available to the customer efficiently.
How do transportation and storage play a role in marketing?
Transportation ensures timely movement of goods; storage maintains stock to meet future demand and avoid shortages.
What are convenience products?
Convenience products are inexpensive, frequently purchased goods with minimal effort. They are widely available and involve low consumer involvement.
What are examples of convenience products?
Toothpaste, soap, bread, soft drinks.
What are subcategories of convenience products?
- Staples (e.g., milk, bread), 2. Impulse goods (e.g., candies, magazines), 3. Emergency goods (e.g., umbrellas, bandages).
What are shopping products?
Shopping products are goods that consumers buy less frequently and compare on quality, price, and style. They require time and effort in decision-making.
What are examples of shopping products?
Clothing, furniture, mobile phones.
What are specialty products?
Specialty products are goods with unique characteristics or brand identification for which consumers make a special effort to purchase.
What are examples of specialty products?
Luxury watches, designer clothing, high-end cars like a Lamborghini.
What are industrial products?
Industrial products are used in production of other goods and services. They are purchased for business use.
What are examples of industrial products?
Machinery, raw materials, tools.
What are subcategories of industrial products?
- Capital items (e.g., buildings, equipment), 2. Materials and parts (e.g., raw materials, components), 3. Supplies and services (e.g., lubricants, repair services).
How do shopping and convenience products differ?
Shopping products involve comparison and higher consumer effort; convenience products are bought frequently with minimal thought or comparison.
How do specialty and shopping products differ?
Specialty products involve brand loyalty and exclusive purchase effort; shopping products involve comparison and variety seeking.
How do industrial and consumer products differ?
Industrial products are for business use or production; consumer products are for personal/family consumption.
