Module 4

What is the main objective of any business organization?

To satisfy the needs and wants of society.

Why is production or purchase meaningless without marketing?

Because a firm needs to market its goods and services to ensure their success.

What is considered the focal point of all business activities?

Marketing.

From where is the term 'marketing' derived?

The term 'marketing' is derived from the word 'market.'

How did Philip Kotler define marketing?

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.

How does the traditional view of marketing differ from the modern view?
The traditional view focuses on the flow of goods and services from producers to consumers,
while the modern view sees it as a process of matching products with markets and
transferring ownership.

What is promotion in marketing?

A tool of communication used to inform the target market about goods and services and to
facilitate the exchange process.

Name two strategies used in setting a promotion mix.

Pull Strategy and Push Strategy.

What does a pull strategy focus on?

Spending heavily on advertising and consumer promotion to build up demand.

What does a push strategy focus on?

Using sales forces and trade promotions to push the product through distribution channels.

What is the main goal of promotion?

To maintain proper communication with the target market.

Name one factor a customer may rely on when judging the quality of a service.
The performer rather than the actual service.

What is personal selling?

An oral presentation to a prospective customer to make a sale.
How is publicity different from advertising?
Publicity is free news coverage by the media, while advertising is a paid form of
non-personal communication.

What are promotions?

Short-term incentives to encourage the purchase or sale of a product or service.

What is public relations in marketing?

Efforts to develop beneficial relationships with influential public figures who benefit the
business.

What is the primary objective of advertising?

To build awareness of a product or service among the target market.

What does RIP stand for in promotion objectives?

Remind, Inform, Persuade.

What is the first step in the promotion process?

Define the need for promotion.

What is a significant objective of promotional activity?

To convince customers to make a purchase decision that benefits both the marketer and the
customer.

Why is creating interest in a product essential in marketing?

It moves the customer from awareness to consideration of purchase by addressing a need.

Why is timing important in executing promotional activities?

Timing influences the success of promotion, such as prime-time advertisements on TV.

What is the purpose of evaluating a promotion?

To determine the effectiveness and outcomes of the promotional efforts.

What does a marketer need to ensure when executing a promotion?

That reality meets customer expectations.

Why is it essential to communicate promotion details to employees?

So that employees are aware of the promotion and can contribute to its success.

What are the main goals of promotion?

To inform, persuade, and remind customers about products or services.

Why is identifying the target market crucial before launching a promotion?

To ensure that the promotional efforts are tailored to the needs and characteristics of the
customers.

What is one objective of building awareness in promotional efforts?

To establish an identity for a new product or company in the market.
How can a marketer stimulate demand for a product?
By offering promotions like free trials or special discounts.

What is the main challenge of marketing communication?

To move customers from awareness to making a purchase decision.

What are the three types of promotion objectives?

Informing, persuading, and reminding.

What is a key element in creating interest during promotion?

Focusing on human characteristics like emotions, fears, and humor.

Why is it important to evaluate competition during promotion planning?

To analyze the strategies adopted by competitors and make improvements.

How can a marketer use promotion to build a brand image?

By developing a favorable image and enhancing the company's reputation through
consistent communication.

What is advertising?
Advertising is any paid, impersonal method of promoting goods or services by an identified
organization or individual.

Name two types of services that advertise heavily in newspapers, magazines, and on
television.
Passenger transport services (like airlines) and banks.

List three common mediums of advertising.

Print, radio, television.

What is the primary purpose of advertising?

To persuade customers and influence their perceptions of a product or service.

Give two examples of above-the-line advertising.

TV and radio advertisements.

What is below-the-line advertising?

Advertising done through direct mail, sponsorship, and sales promotions.

What are the five Ms of advertising?

Mission, Money, Message, Media, and Measurement.

What is the objective of the 'Mission' component in the five Ms of advertising?

To define the advertising objectives.

How does 'Money' factor into advertising planning?

It determines how much can be spent to reach advertising objectives.
What does the 'Message' component focus on in advertising?
Message generation, evaluation, and selection of the right message for the audience.

What is the role of 'Media' in the five Ms of advertising?

To choose the right media vehicles and decide on timing and geographical allocation.

How is 'Measurement' important in advertising?

It helps in evaluating the communication and sales impact of the campaign.

What is a key advantage of advertising?

Low cost per customer reached due to mass scale advertising.

Why is advertising considered an impersonal form of communication?

Because it’s a one-way communication method without direct interaction with customers.

How does advertising help in building brand loyalty?

By consistently promoting the brand and creating a long-term image.

Name two major disadvantages of advertising.

Inability to close sales and difficulty in getting immediate feedback.

Why is 'advertising clutter' considered a disadvantage?

It can create confusion in customers' minds due to overcrowding of information.

What is personal selling?

A promotional method where a salesperson uses skills to build personal relationships and
attempt to close a sale.

Give an example of personal selling.

Sales presentations or telemarketing.

How is personal selling different from advertising?

Personal selling involves face-to-face interaction and two-way communication, while
advertising is impersonal.

What is one significant advantage of personal selling?

It allows a marketer to adjust the message according to the customer’s informational needs.

Why is personal selling considered more costly than other forms of promotion?
Because it involves more personal interaction and requires a larger budget for personnel and
training.

What role does personal selling play in building customer relationships?

It helps in developing long-term relationships by addressing the customer’s specific needs
and interests.
Which promotional method is more effective at discovering the strengths and
weaknesses of new products?
Personal selling.

How does personal selling contribute to market feedback?

Salespeople can provide direct feedback to the marketing department about product
strengths and weaknesses.

What is one challenge of advertising when compared to personal selling?

Advertising lacks the ability to close sales directly.

How does advertising create prestige for a company?

By being featured in mass media like TV and newspapers, enhancing the company’s image.

Which form of communication offers greater freedom to adjust the message to

customer needs: advertising or personal selling?
Personal selling.

What type of advertising might use sponsorships or sales promotions?

Below-the-line advertising.

Why is advertising considered non-threatening to customers?

Because it is impersonal, unlike direct sales which can be more confrontational.

What is one major advantage of advertisements in mass media?

They reach potential customers that sales staff may not be able to reach.

What can make advertising ineffective at times?

The ability of potential customers to ignore the advertising message.

What is a common issue with measuring the effectiveness of advertising?

It is difficult to assess, and results may be deferred for a long time.

How does advertising contribute to quick sales?

By stimulating immediate desire and action from potential customers.

What does 'reach' refer to in media planning for advertisements?

The number of potential customers who see the advertisement.

What is the main objective of any business organization?

To satisfy the needs and wants of society.

Why is marketing considered the focal point of business activities?

Because production or purchase is meaningless if a firm cannot market its goods and
services.

What does the term "marketing" derive from?

The word "market."
How did the American Marketing Association define marketing?
As an organizational function and a set of processes for creating, communicating, and
delivering value to customers.

According to Philip Kotler, what is marketing?

A social process by which individuals and groups obtain what they need and want by
creating, offering, and exchanging products and services.

What is "promotion" in marketing?

A tool of communication used to inform customers about goods and services to facilitate the
exchange process.

What are the elements of the Promotion Mix?

Personal selling, trade fairs, sales promotion, advertising, public relations, sponsorship, and
direct mail.

What is a Pull Strategy in promotion?

It involves spending heavily on advertising and consumer promotions to build up demand.

What is a Push Strategy in promotion?

It uses sales forces and trade promotions to push products through distribution channels.

What are the goals of promotion?

To inform, persuade, and remind customers about products and services.

Why is promotion important in marketing?

It helps in maintaining communication with the target market and ensures customer
satisfaction.

What are communication tools or channels in promotion?

Advertising, promotions, personal selling, publicity, and public relations.

What is the purpose of advertising?

To provide non-personal communication through paid media such as TV, radio, and
billboards.

What is the objective of sales promotion?

To provide short-term incentives to encourage purchases.

What is personal selling?

An oral presentation made to a prospective customer for making a sale.

What is publicity?
Free news coverage by the media that helps promote products or services.

What is public relations?

Efforts to build beneficial relationships with influential public groups that can benefit the
business.

What is one of the most significant objectives of promotion?

To convince customers to make purchase decisions that benefit both the marketer and the
customer.

How do marketers create interest in their products?

By creating messages that convince customers that they have a need for the product.

How does promotion stimulate demand?

By encouraging customers to try new products or increase their purchases through special
offers.

What is meant by reinforcing the brand through promotion?

Promotion helps build strong relationships with customers to encourage repeat purchases.

What are the three key steps in promotional communication (RIP)?

Remind, Inform, and Persuade.

What is the first step in the promotion process?

Defining the need for the promotion.

What is an important aspect of defining a target market for promotion?

Understanding whether customers are first-time users, heavy users, or non-users.

Why is analyzing the competition important in promotion?

It helps understand the strategies adopted by competitors.

What should be considered when choosing a promotional tool?

The best way to reach the target market, such as offering incentives or additional services.

What is the importance of timing in promotions?

Timing plays a crucial role in ensuring the success of promotional activities.

Why is it necessary to communicate promotional plans to employees?

Employees must understand the goals and intentions of promotional campaigns to execute
them effectively.

What is the purpose of evaluating a promotion?

To assess the effectiveness of the promotion in relation to sales and profit.

What should be evaluated after a promotional campaign?

Whether the promotion met its objectives and the overall benefits and losses.

What should be the main focus when promoting a new product?

Building awareness to let the market know who the company is and what it offers.
How does a company provide information during promotion?
By explaining what the product or service is and its position in the market.

What is the goal of creating interest in promotion?

To move customers from being aware of a product to considering a purchase.

What is the role of free trials or demonstrations in promoting products?

They encourage customers to try products they haven't purchased before.

What is the ultimate goal of maintaining a customer relationship after a sale?

To build loyalty and encourage repeat purchases.