Marketing Management

Marketing is a social process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others. In this chapter you will study the meaning of market, marketing and marketer, the features of marketing, the difference between marketing and selling, and the functions of marketing, from gathering market information to transportation and storage. You will compare the five marketing management philosophies: the production, product, selling, marketing and societal marketing concepts. The core of the chapter is the marketing mix, the four Ps. Under product you will learn about branding, labelling and packaging. Under price you will study factors such as product cost, utility and demand, competition, government regulation and pricing objectives. Under place you will study channels of distribution of zero, one, two and three levels and the components of physical distribution. Under promotion you will study advertising, personal selling, sales promotion and public relations, with their merits and limitations.

Detailed Worksheet: Marketing Management Section A - Definitions (10 marks) 1. Define marketing. Distinguish between marketing and selling on two bases. (2 marks) 2. What is the societal marketing concept? How is it different from the marketing concept? (2 marks) 3. What is branding? Distinguish between a brand name and a trademark. (2 marks) 4. State any four functions of a label. (2 marks) 5. Define advertising. State two features of it. (2 marks) Section B - Calculations and Applications (15 marks) 6. The cost of producing a water purifier is Rs 6,000. The manufacturer adds a margin of 20% on cost, the wholesaler adds 10% on his purchase price and the retailer adds 15% on his purchase price. Calculate the price paid by the consumer, and name the channel of distribution used. (3 marks) 7. A detergent company offers "Buy 2, get 1 free" on packs priced at Rs 120 each. Calculate the effective price per pack and the percentage discount enjoyed by the customer. Name the sales promotion technique and state one limitation of sales promotion. (3 marks) 8. A company spent Rs 40 lakh on a television advertising campaign reaching 2 crore viewers. Calculate the cost per thousand viewers. Explain why advertising is called an impersonal and economical means of communication. (3 marks) 9. Identify the element of the marketing mix involved in each case: (i) a company launches a sugar-free version of its biscuits (ii) it reduces the price of a pack by Rs 5 (iii) it opens an online store (iv) it hires a film star for its advertisements (v) it changes its packaging to a resealable pouch (vi) it stocks products in more rural outlets. (3 marks) 10. Identify the marketing philosophy: (i) "Make as much as possible at low cost; it will sell" (ii) "Customers want the best quality; improve the product continuously" (iii) "Push the product through aggressive selling" (iv) "Find out what customers want and satisfy them better than competitors" (v) "Satisfy customers while also caring for society's long-term welfare." (3 marks) Section C - Diagrams (10 marks) 11. Draw diagrams of the zero-level, one-level, two-level and three-level channels of distribution for consumer goods. (4 marks) 12. Draw a chart showing the four elements of the marketing mix with three sub-elements under each. (3 marks) 13. Draw a chart showing the components of physical distribution: order processing, transportation, warehousing and inventory control. (3 marks) Section D - Analysis and Higher-order Thinking (15 marks) 14. A juice company sells drinks in plastic bottles and has recently been criticised for plastic waste and high sugar content. Analyse which marketing philosophy it should adopt, and suggest changes in its product, packaging and promotion in line with that philosophy. (5 marks) 15. Explain the factors affecting the determination of price of a product. Analyse how a company launching a new smartphone in a highly competitive market would decide its price. (5 marks) 16. Advertising is often criticised for adding to costs, undermining social values, confusing buyers, encouraging sale of inferior products and being in bad taste. Evaluate each objection, and argue whether advertising is a social waste. (5 marks) Instructions: Time allowed 2 hours. Attempt all sections. Quote relevant lines from cases while identifying concepts, and show all calculations clearly.