1.) What is consumer behaviour? Explain with an example.

Consumer behavior or consumer buying behavior are all the aspects that affect
consumers’ search, selection, and purchase of products. We can use the term for the
purchases of services too. Consumer behavior also includes the post-purchase stage.
Consumer behavior is an area of research within the business field of ‘marketing’.

A consumer is a person, organization, or economic entity that buys a good or service

and does not sell it on. I other words, they ‘consume’ it.

To understand consumer behavior, companies need to know why customers bought

something and what pushed them to buy. They also need to know what trends are
developing in society.
An example of a new trend developing in society is children’s influence on their parents’
purchases. Kids today are major factors in the purchase of expensive products. In fact,
many parents today will not purchase a car if their children do not like it. This was not the
case forty years ago.

Consumer behavior – a process

When attempting to buy something, our consumer behavior consists of a process.

First, we need to recognize a problem. In this stage, we aim to satisfy a need or want. For
example, let’s suppose we need to iron our clothes.

Second, we carry out research. During this step, we actively look for ways to satisfy our need.
For example, we can iron clothes traditionally, use a vapor iron, or take them to the dry
cleaners.

Third, we evaluate alternatives. Based on the information we have gathered, we decide which
choice best meets our need or want.

For example, we may decide that taking the clothes to the dry cleaners helps them last longer.
However, buying an iron might be a better choice if we want to save money over the long-term.

Fourth; this is the purchasing stage. This is when we decide to buy the best option to meet that need or
want.

Lastly, there is the post-purchase evaluation stage. In this stage, we evaluate our purchase. In other
words, we determine whether the purchase was worth it. Did it satisfy our need? Did the product or
service bring satisfaction after we used it?

For example, we decided to get the iron, because we can iron whatever we like whenever we like. We do
not have to wait days. Therefore, the purchase brought satisfaction.
Consumer behavior – companies need to know
Likewise, a business has to have in mind that there four types of consumer behavior.

1. Routine shopping. The shopper buys without having to do much research, there is low
involvement, and usually at low cost. For example, the thought behind what to buy in our weekly
supermarket shopping is relatively simple.

2. Limited decision making. The buyer occasionally purchases the product after somebody
recommended it. They do a little research, i.e., it is not as time-consuming as buying an
expensive product.

For example, when a woman wants to dye her hair, she may ask friends for a reliable option.
Put simply; she only needs to check a few options.

3. Extensive decision making. People spend much longer deciding when they are considering
an expensive product. Consumers spend time carrying out research and comparing multiple
products. They check product ratings and also ask friends or sales professionals.

The process takes longer to complete. For example, when buying a TV, people spend a long
time going to different shops and comparing products.

Deciding what house to buy may take weeks or even months.

4. Impulse buying. The customer had not planned to buy. When I am waiting at the checkout in
a supermarket, I might suddenly buy some chewing gum. It is an impulse buy because I had not
planned to purchase gum.

Supermarkets know that consumers are impulsive, especially when it comes to chocolates,
candy, and gum. Consequently, they place those products near the checkout.

Major Factors Influencing Consumer Behavior

1. Psychological Factors
2. Social Factors
3. Cultural Factors
4. Personal Factors
5. Economic Factors

Consumer behavior is influenced by many different factors. A marketer should try to understand
the factors that influence consumer behavior. Here are 5 major factors that influence consumer
behavior:

1. Psychological Factors

Human psychology is a major determinant of consumer behavior. These factors are difficult to
measure but are powerful enough to influence a buying decision.

Some of the important psychological factors are:

i. Motivation

When a person is motivated enough, it influences the buying behavior of the person. A person
has many needs such as social needs, basic needs, security needs, esteem needs, and self-
actualization needs. Out of all these needs, the basic needs and security needs take a position
above all other needs. Hence basic needs and security needs have the power to motivate a
consumer to buy products and services.

ii. Perception

Consumer perception is a major factor that influences consumer behavior. Customer perception
is a process where a customer collects information about a product and interprets the
information to make a meaningful image of a particular product.

When a customer sees advertisements, promotions, customer reviews, social media feedback,
etc. relating to a product, they develop an impression about the product. Hence consumer
perception becomes a great influence on the buying decision of consumers.

iii. Learning

When a person buys a product, he/she gets to learn something more about the product.
Learning comes over a period of time through experience. A consumer’s learning depends on
skills and knowledge. While skill can be gained through practice, knowledge can be acquired
only through experience.

Learning can be either conditional or cognitive. In conditional learning the consumer is exposed
to a situation repeatedly, thereby making a consumer to develop a response towards it.

Whereas in cognitive learning, the consumer will apply his knowledge and skills to find
satisfaction and a solution from the product that he buys.

iv. Attitudes and Beliefs

Consumers have certain attitudes and beliefs which influence the buying decisions of a
consumer. Based on this attitude, the consumer behaves in a particular way towards a product.
This attitude plays a significant role in defining the brand image of a product. Hence, marketers
try hard to understand the attitude of a consumer to design their marketing campaigns.

2. Social Factors

Humans are social beings and they live around many people who influence their buying
behavior. Humans try to imitate other humans and also wish to be socially accepted in the
society. Hence their buying behavior is influenced by other people around them. These factors
are considered as social factors. Some of the social factors are:
i. Family

Family plays a significant role in shaping the buying behavior of a person. A person develops
preferences from his childhood by watching family buy products and continues to buy the same
products even when they grow up.

ii. Reference Groups

A reference group is a group of people with whom a person associates himself. Generally, all
the people in the reference group have common buying behavior and influence each other.

iii. Roles and status

A person is influenced by the role that he holds in the society. If a person is in a high position,
his buying behavior will be influenced largely by his status. A person who is a Chief Executive
Officer in a company will buy according to his status while a staff or an employee of the same
company will have different buying pattern.

3. Cultural factors

A group of people is associated with a set of values and ideologies that belong to a particular
community. When a person comes from a particular community, his/her behavior is highly
influenced by the culture relating to that particular community. Some of the cultural factors are:

i. Culture

Cultural Factors have a strong influence on consumer buying behavior. Cultural Factors include
the basic values, needs, wants, preferences, perceptions, and behaviors that are observed and
learned by a consumer from their near family members and other important people around
them.

ii. Subculture

Within a cultural group, there exists many subcultures. These subcultural groups share the
same set of beliefs and values. Subcultures can consist of people from different religion, caste,
geographies and nationalities. These subcultures by itself form a customer segment.

iii. Social Class

Each and every society across the globe has the form of social class. The social class is not just
determined by the income, but also other factors such as the occupation, family background,
education and residence location. Social class is important to predict the consumer behavior.

4. Personal Factors

Factors that are personal to the consumers influence their buying behavior. These personal
factors differ from person to person, thereby producing different perceptions and consumer
behavior.
Some of the personal factors are:

i. Age

Age is a major factor that influences buying behavior. The buying choices of youth differ from
that of middle-aged people. Elderly people have a totally different buying behavior. Teenagers
will be more interested in buying colorful clothes and beauty products. Middle-aged are focused
on house, property and vehicle for the family.

ii. Income

Income has the ability to influence the buying behavior of a person. Higher income gives higher
purchasing power to consumers. When a consumer has higher disposable income, it gives
more opportunity for the consumer to spend on luxurious products. Whereas low-income or
middle-income group consumers spend most of their income on basic needs such as groceries
and clothes.

iii. Occupation

Occupation of a consumer influences the buying behavior. A person tends to buy things that are
appropriate to this/her profession. For example, a doctor would buy clothes according to this
profession while a professor will have different buying pattern.

iv. Lifestyle

Lifestyle is an attitude, and a way in which an individual stay in the society. The buying behavior
is highly influenced by the lifestyle of a consumer. For example when a consumer leads a
healthy lifestyle, then the products he buys will relate to healthy alternatives to junk food.

5. Economic Factors

The consumer buying habits and decisions greatly depend on the economic situation of a
country or a market. When a nation is prosperous, the economy is strong, which leads to the
greater money supply in the market and higher purchasing power for consumers. When
consumers experience a positive economic environment, they are more confident to spend on
buying products.

Whereas, a weak economy reflects a struggling market that is impacted by unemployment and
lower purchasing power.

Economic factors bear a significant influence on the buying decision of a consumer. Some of
the important economic factors are:

i. Personal Income

When a person has a higher disposable income, the purchasing power increases
simultaneously. Disposable income refers to the money that is left after spending towards the
basic needs of a person.
When there is an increase in disposable income, it leads to higher expenditure on various items.
But when the disposable income reduces, parallelly the spending on multiple items also
reduced.

ii. Family Income

Family income is the total income from all the members of a family. When more people are
earning in the family, there is more income available for shopping basic needs and luxuries.
Higher family income influences the people in the family to buy more. When there is a surplus
income available for the family, the tendency is to buy more luxury items which otherwise a
person might not have been able to buy.

iii. Consumer Credit

When a consumer is offered easy credit to purchase goods, it promotes higher spending.
Sellers are making it easy for the consumers to avail credit in the form of credit cards, easy
installments, bank loans, hire purchase, and many such other credit options. When there is
higher credit available to consumers, the purchase of comfort and luxury items increases.

iv. Liquid Assets

Consumers who have liquid assets tend to spend more on comfort and luxuries. Liquid assets
are those assets, which can be converted into cash very easily. Cash in hand, bank savings and
securities are some examples of liquid assets. When a consumer has higher liquid assets, it
gives him more confidence to buy luxury goods.

v. Savings

A consumer is highly influenced by the amount of savings he/she wishes to set aside from his
income. If a consumer decided to save more, then his expenditure on buying reduces. Whereas
if a consumer is interested in saving more, then most of his income will go towards buying
products.

2.) Explain Product planning in detail with its policies and its
positioning.
Product planning embraces all activities which enable producers and middlemen to
determine what should constitute Company's line of products",

Product planning embraces all activities which enable producers and middlemen to determine
what should constitute Company's line of products",
Product planning is the act of making out and supervising the search, screening, development
and commercialization of new products; the modification of existing line and discontinuance of
marginal or unprofitable items”.
Therefore, we can conclude that the product planning and development is comprised of the
product mix decisions related with the product and services which the firm intends to produce
and sell. It also includes decisions regarding product policy and strategies, which serve as
guidelines for the target market and therefore, help in formulating the target market objectives.
Product planning is comprised of both the corporate plan as well as the marketing plan, based
on which the product plans are made. Product planning is followed by product development,
which involves finding ways to produce the product based on the blueprint of product derived
during product plan. The development process also involves the decision regarding product's
feasibility and profitability, i.e., whether developing the product will be profitable for the firm in
the long-run or not.
Product planning involves various other decisions like designing, packaging and labeling,
branding, pricing, and making alterations in the product as per the requirements of the
customers. These decisions are to be taken by the marketing managers.

Objectives of Product Planning:-

Some of the specific objectives set-up during product planning are as follows :

1) To Identify and Fulfill Customers' Needs :

The very first objective of any product planning is to determine the customers' needs and
thereafter designing the required products and services. To fulfill this objective all the resources
and efforts of the firm are directed towards it.

2) To Determine Strengths and Weaknesses of the Firm :

Another objective of product planning is to determine the strengths and weaknesses of the firm
so as to effectively develop the blueprint of the required product. It helps in developing such
products which reduce the weaknesses of the firm and empower its strength.

3) To Ensure Optimum Utilization of Resources :

Ensuring optimum utilization of resources is also an objective of the product planning. Here, the
objective is to maintain the minimum cost level of the production while allocating firm's
resources in manufacturing the product. Product planning involves development of product by
either manufacturing a new product or by modifying the existing one as per the customers'
need. This involves use of various resources. The objective here is to economically use the
costly and limited resources so as to make the production process cost-effective.

4) To Assure Firm's Survival :

Another objective of any product planning process is to assure the firm's survival in the future. A
firm's long-term survival is determined by the performance of its products in market. The
products that fulfill all the requirements of the customers help in the long-term growth and
success of the firm. In order to survive for a longer period of time, the firm needs to incorporate
innovation and renovation in its products and services

5) To Enhance Level of Sales :

The main motive of all the firms is to enhance their sales level for earning profit. For achieving
this objective, the firm uses product planning as a tool because when the product will be
effective then only its sale will increase.
Importance of Product Planning :-

1) Initiator of the Marketing Programme :

In marketing, product planning is one of the processes undertaken at the very beginning of the
marketing programme. It involves planning and deciding about the product at different stages of
the product life cycle. The marketing policies, strategies, programmes and procedures are
greatly influenced by the decision taken regarding modification, customization, standardization
and elimination of a product. Inefficient product planning will put a negative impact on all other
decisions, programmes, and policies, since all of them are derived or formulated on the basis of
product planning.

2) Impacts Marketing Actions :

Marketing activities rotate around product planning. Hence, inappropriate planning influences
the marketing activities and may lead to managerial inefficiencies in the firm. The various
elements associated with the marketing programme like advertising policies, distribution
channels, pricing policies, personal selling, sales promotion, etc., are all influenced by the
product planning decisions.

3) Results in Customer Satisfaction :

As product planning is totally based on the assessment of the needs and requirements of the
customers, only reasonable products and services are offered by the firms. This leads to the
customer satisfaction. Obsolete or useless products are also eliminated through product
planning, which ultimately helps the customers. Thus, customer satisfaction is the end result of
an effective product planning.

4) Ensures Profitability of the Product :

Earning profits is the ultimate motive o all the firms. They focus on selling the product as per
customers need and in return make profit on such sale. In doing so, product planning serves as
the best way to manage fulfillment of customers needs as well as making profits out of it. For
ensuring profitability of the product, the firm undertakes various researches from time to time to
Know the change in the taste and preferences, needs, habits, status etc. of the customers.
Based on the results of these researches, firm goes for product modification.

5) Profit Prediction :
With the help of product planning, a firm can very easily forecast its profits at different stages of
product life cycle, the only thing required by the firm is to know the stage of the PLC. Also, in
case of firm's declining phase, the marketers may decide about which product needs to be
developed and which product should be eliminated so as to retain the stability of the firm. Such
decision will be helped by appropriate product planning.

Elements Of Product Planning :-

The various elements of product planning are as follows :

1) Product Innovation :
Product innovation is associated with modifying a product or having all new product offering
some productive use. The term 'innovation' is thus related with bringing change and growth in
the product. The firms which lack innovation usually fail to maintain stability in the competitive
market. Product innovation helps in driving the market demand for the product and gaining
profits by increasing sales. It is a method through which an idea can be converted into product
and successively into profit after the product is sold.

2) Product Diversification :
The extension in the width and depth of the product line is known as ‘product diversification'.
Number of product lines represents the width whereas number of variants, i.e., sizes, 'styles,,
quality, colors, designs, etc., represents the depth of the product line. Product diversification
helps in incorporating growth and stability to the firm and also helps in enhancing profits. When
the firm lacks managerial efficiency and finance, then at that time, product diversification seems
to be the savior. It helps in balancing the losses of one product with the profit earned by the
other. Further, the risk is minimized with the help of diversified product line.

3) Product Standardization :
Another element of product planning is product standardization. It includes limiting the number
of variants or types of product under a particular product class. Here, uniform quality products
with limited variants or larger quantities are manufactured so as to optimally utilize the scarce
resources. Economies of cost as well as the human resources are the end result of such
standardization processes.

4) Product Elimination :
Product elimination is also an element of the product planning. In this, several products are
removed from the product line due to some defects or technological obsolescence. To
determine which product is to be eliminated is a very delicate issue, therefore, it cannot be
decided instantly. As the firm has invested time money and effort in a particular product, it is not
easy for the marketer to eliminate it. Ethical concern also there in informing the public about the
elimination. However, eliminating the right product helps in preventing the misuse of the
resources and the funds can be diverted into more productive investment. Therefore, the
product elimination decision should be based on deep research comprising the historical and
financial research related with product.

5) Product Customization :
Product planning also includes product customization. This refers to the production of
customized goods and services meant for a particular segment or type of customer. Both
manufacturing and service industries can implement the product customization process.

3.) What is sales promotion and publicity? Explain in detail.

Sales Promotion and Publicity is one of the main criteria in a business. A business makes the
consumers aware of their goods and services offered by them. They also make the consumers
acknowledge the beneficial needs that they can satisfy by using their goods or services.

Without Sales Promotion and Publicity a business will not find potential customers nor they can
expand their customer segment. Publicity and Promotion is a hot topic and resourceful study in
today’s economic market, hence we detail knowledge on this sector as well.

Sales promotion done by a business means simply persuading the potential customer to avail
their products or services. Sales promotion, though a short-term tactic to attract the consumers
and boost their sales yet it is a mandatory one. For long-term tactics, a business might use
Customer Relation Management as a strategy.

Sales Promotions are targeted both at the consumers and also at the distributaries or
intermediaries like the wholesaler, retailer or agents who help their product to reach the
customers. While taking the decision about the Sales promotion campaign, a business need to
make sure:

1. What is the cost of the sales promotion that is going to be incurred by the business? This
is to be answered as they need to know whether the investment is worth the return from
the sales promotion.
2. Second is, the business should take note of this that the business does not merely
perform the sales promotion strategy, they also need to check whether the sales
promotion strategy is in sync with the brand image or not. They should need to analyze
its heavy discounts and premium price rise.
3. Lastly, they should overview whether the sales promotion will be able to attract the
consumers after their campaign is done.

Publicity

Publicity is the public visibility or the public awareness for any product or service that is offered
by the business. It is the flow down of the product related information from the business to the
local customers. Publicity includes general public, goods and services, and other important
sectors.

There is a difference between a publicist and a PR. Publicist is someone who does publicity for
the business while PR or Public Relations is a strategy that helps an organization to maintain
communication with the public. This can be done either internally or with the help of the media.
Publicity ranks as an important component in a marketing perspective. The other elements
include the promotional mix. Organizations will also design the media coverage to attract the
public positively, which is known as publicity stunts.

Consumer Sales Promotion

The marketing technique that tempts the customers to purchase a product of their business is
known as Sales Promotion. These kinds of promotions last for a destined time period which is
used to achieve a specific goal or purpose. Unveiling a new product or even increasing their
market share the ‘Consumer Sales Promotion’ strategy is used. Various kinds of promotional
techniques are used by product manufacturers and sellers.

One of those is – Providing free samples. This technique is generally used when the business
introduces a product in the market. Free samples of the product are given to the consumers to
make them taste or test their features. Sampling is also used as a part of a large marketing
campaign.

Offering a Free Trial, in this promotional campaign, consumers are offered a free trial. Based on
this trial the consumers decide to continue to avail their products or services or not. This
campaign is mostly common in television infomercials where the customer is allowed a 30-day
free trial during this time he needs to decide about further buying the product or not.

Free gift, these entice the customers to buy the product in interest of the free gifts gifted to them
which are in the package. This also serves as a visual attraction which might draw willingness to
buy the product.

Sales Promotion Examples

Sales Promotion is a technique to attract the customers about the sale of their product.

Few Common Examples of Sales Promotion Are As Follows

1. Flash sales
2. The buy one, get one free offer.
3. Coupons or Discounts
4. Giveaways or Free Samples.
5. Recurring sales.
6. Tripwires
7. Limited time offers.

All these promotional techniques will help the business to grow and get all the customers in their
zone. A business is always keen in expanding their territory, and this will happen when they
capture a larger market share which means when they are able to persuade a lot of customers
to buy their products, they can achieve this goal.

The Promotional Techniques and Sales promotional Ideas thus helps a business to get their
customers. Also, vice versa the customers get to know about the goods offered through this
sales promotion done.

4.) What are the intermediaries? Explain how to manage channels.

Intermediaries are individuals or companies that behave as middlemen between parties for
investment deals, business deals, negotiations, insurances, etc. They are commonly known
as consultants or brokers and are specialised in a specific area.

They give all the required information about a product to the customers and also streamline
a company’s processes. In other words, intermediaries are third-party agents or individuals
between parties for a specific deal.

Types of Intermediaries

The four types of traditional intermediaries are as follows:

Brokers and Agents: Both of these intermediaries sell products and services on a commission
or percentage basis. They are legally appointed to impart information about a product to the
customers on behalf of the manufacturer or producer, but they never take the ownership of the
product sold.

The key function of these intermediaries is to bring buyers and sellers together to make a deal.
For example, an insurance or real estate agent gets a commission for their service or a sale, but
does not take the ownership.

Wholesalers and Resellers: They typically buy goods from the manufacturer in bulk and resell
them to the retailers or other businesses. They are independent businessmen and take
ownership of the products purchased from the manufacturers or producers.

Some wholesalers also provide services such as order processing, storage, delivery, and
participate in promotion as well.

Distributors: The distributors are selected by the manufacturers to distribute their products to
the wholesalers or resellers in different locations.

The distributors are involved in many businesses and cover many geographical areas. A few
services distributors offer to the wholesalers are delivery, maintenance of inventory, extension
of credit, etc.

Retailers: Retailers are the mediators between wholesalers and customers. They purchase
different goods from the wholesalers and sell them to the ultimate customers in small quantities
from one place.

How to manage channels:-

Management of marketing channel involves all functions of marketing mix which include
product, price, physical distribution, program and people. The physical distribution system
and channel structure is established through which products flow in the marketing channel.

In order to maximize profit, companies must manage their marketing channel effectively.
Management of marketing channel refers to the process of analysing, planning, organizing and
controlling its marketing channel. In marketing channel two different activities occur. One is the
establishment of physical distribution system and other is management of marketing objectives.
Management of marketing channel involves all functions of marketing mix which include
product, price, physical distribution, program and people. The physical distribution system and
channel structure is established through which products flow in the marketing channel.

To Mange marketing channel, firms must adopt motivational strategies such as paying higher
slotting allowances, offering higher trade discount, providing strong promotional and advertising
support, training channel member sales people, giving high level logistic support. Management
professional stated that after a firm has selected a channel system, it must select, train,
motivate, and evaluate individual intermediaries for each channel. It must also modify channel
design and arrangements over time.
Selecting Channel Members: For successful management, Companies must have to choose
talented channel members cautiously because for customers, the channels are the company.
Producers should decide what features distinguish the better intermediaries and scrutinize the
number of years in business, other lines carried, growth and profit record, financial strength,
cooperativeness, and service reputation of potential channel members. If the intermediaries are
sales agents, producers should assess the number and character of other lines carried and the
size and quality of the sales force. If the intermediaries want exclusive distribution, the
manufacturer should assess locations, future growth potential, and type of customers.

Training and Motivating Channel Members: It is a major responsibility of a company to

examine its intermediaries in the same way it views its customers. It needs to establish
intermediaries’ needs and build a channel positioning such that its channel offering is tailored to
provide superior value to these intermediaries. To enhance intermediaries’ performance, the
company should offer training, market research, and other capability-building programs. The
company must also continually strengthen that its intermediaries are to jointly gratify the needs
of end users. Producers differ greatly in channel power, the ability to change channel members’
behaviour therefore the members take corrective actions. Often, gaining intermediaries’
collaboration is a major challenge. Sometimes, Producers try to forge a long-term affiliation with
channel members. The manufacturer must talk clearly what it expects from its distributors in the
way of market coverage and other channel issues and may ascertain a compensation plan for
adhering to these policies. Motivating channel members takes numerous forms in order to
gratify the requirements at each level in channel. Profitability is major Motivational force for
whole seller for product selection. When profit motivation is satisfied, whole seller will look for
marketing programs offered by producers to sell products to retailers. Whole seller checks the
credit option and terms of payment when assessing the profit option for business when dealing
with particular supplier. Retailers are mainly concerned with maintenance of product supply and
availability. It is observed in market that when customers cannot get product in one retail shop,
they immediately search for it in another retailers. But retailers do not want to lose customers.
Another interest of retailers is profitability of the product.

Evaluate Channel Members: To successfully manage market channel, producers must assess
intermediaries’ performance at regular intervals against such standards as sales-quota
attainment, average inventory levels, customer delivery time, treatment of damaged and lost
goods, and cooperation in promotional and training programs. A producer will occasionally
determine that it is paying particular intermediaries too much for what they are actually doing.
Producers should establish functional discounts in which they pay specific amounts for the
intermediary’s performance of each agreed-upon service. People who are not performing must
be given extra training or counselling.

Modifying Channel Arrangements: Channel arrangements must be reassessed regularly and

altered when distribution does not work as planned, consumer buying patterns change, the
market develops, new competition occurs, inventive distribution channels appear, and the
product moves into later stages in the product life cycle. No marketing channel remains
successful over the entire product life cycle. Early purchaser might be willing to pay for high-cost
value-added channels, but later buyers will change to lower-cost channels. In highly competitive
markets with low entry barriers, the best channel structure will transform over time. The
company may add or drop individual channel members, add or drop particular market channels,
or develop a new way to sell merchandise. The process of adding or dropping an individual
channel member needs an incremental analysis to decide profitability of company. Additionally,
marketers adopt data mining to analyse customer shopping data as input for channel decisions.
The most complicated decision is whether to modify the overall channel scheme. Channels can
become old-fashioned when gap occurs between the existing distribution system and the ideal
system to gratify customer’s needs and wants.

The most challenging face of channel management is the maintenance of control over all parts
of distribution flow and marketing activities. Marketers have to undergo legal issues in
controlling marketing channels therefore they need to develop successful channel programs that
will stimulate the action planned without creating conflict among competitive channel members.

To summarize, market channel is medium through product from raw material move to costumer.
In designing market channel it is important to comprehend customer’s need. The task of
managing marketing channel falls to marketing and sales managers. These people directly
involve with channel members and company’s competitors. They know how to find valuable
information for good management decisions. To organize marketing channel, it is imperative to
gather relevant information. It assists in writing accurate and detail market profile statement.
Most marketing channels are created with one or more intermediaries between the
manufacturer and consumer.

5.) What is Marketing strategy? Explain in detail with an example of

a brand’s marketing strategy.

A marketing strategy is a long-term plan for achieving a company's goals by understanding

the needs of customers and creating a distinct and sustainable competitive advantage. It
encompasses everything from determining who your customers are to deciding what
channels you use to reach those customers.

 Marketing is more than just advertising and promotion – it's all about connecting with
the customer.
 A marketing strategy sets the direction for all your product and marketing-related
activities.
 Having a marketing strategy helps keep all your activities on track.
 Developing a marketing strategy involves setting goals, researching the market,
developing product plans, defining your marketing initiatives.

Marketing is about connecting your company with potential customers and connecting those
customers with your products. It involves understanding customer needs, translating those
needs into products and services, packing and pricing those products and services, and then
convincing customers that they need to buy those products and services.

In essence, a marketing strategy determines the general direction – but not the specific details –
for a variety of marketing-related activities. Ideally, your marketing strategy should help you
define the following for your company:
  Target audience
 Value proposition
 Product mix
 Brand messaging
 Promotional initiatives
 Content marketing

There are several steps you need to take to create a robust marketing strategy for your
business.

Set definable business goals

Your company's vision and objectives are the driving factors behind your marketing strategy.
These overall objectives help determine your marketing goals, which your marketing strategy is
in service of.

Your marketing goals build on your company's goals. You might set a goal to achieve a specific
market share, dominate a particular channel or reach a certain percentage of a certain type of
consumer. Your goals should be reachable and measurable.

Identify and research the target market

The goals you set help you define the target market to pursue. This requires you to get familiar
with the customers in this market, which requires some degree of market research and analysis.
You need to determine the following about the target market and its customers:

 Market size and growth potential

 Market trends
 Competitors
 Geographic and demographic characteristics
 Customer behavior

Focus on the 7 P's

As you develop your marketing strategy, you should focus on the traditional 7 P’s of marketing:

 Product – how you satisfy customer needs

 Price – how much customers are willing to pay for your product
 Promotion – which channels you use to tell customers about your product
 Place – where you sell your product
 People – individuals who help sell your product to customers
 Packaging – how you present your product to the customer
 Process – how you deliver your product to customers

Develop product plans

Once you understand your target customers, you can determine what products best serve those
customers' needs. When you know what a customer wants, you can build the right product for
that customer.
Developing the product falls outside the parameters of the marketing department, of course, as
does producing the product. But marketing should have a prominent and vocal role in
determining the product's features, pricing and packaging, as determined by customer needs
and metrics.

Identify the key benefits

Savvy marketers know that new customers don't make decisions based on a new product's
features but rather on how that product benefits them. It's essential to identify the key benefits of
the products you develop – how that product best serves the customers' wants or needs.

Unsuccessful products often have attractive features but unless those features translate into
benefits, customers simply don't care. It's not a matter of "if you build it, they will come," it's a
matter of meeting your customers' needs.

Craft your positioning and messaging

Product positioning should build on a product's benefits and how the product meets the needs
of the target audience. You have to deeply understand what your customers value and then
position your product accordingly.

This follows through into all messaging surrounding the product. The product position may be
that it's the best for meeting a particular need – the messaging communicates that positioning in
a clear, concise and attention-getting fashion.

Define your marketing mix

Finally, your marketing strategy should determine how you reach your target audience – what
channels and activities you include in your marketing mix. This can include traditional channels
like print, radio and television, as well as digital channels, social media and mobile apps.