1. A.

Marketing is defined as a process by which goods and services are exchanged and the values determined in terms of money prices. Marketing includes all those activities carried on to transfer the goods from the manufacturers or producers to the consumers. Marketing is more than a mere physical process of distributing goods and services. It is the process of discovering and translating consumer wants into products and services. It begins with the customer (by finding their needs) and ends with the customer (by satisfying their needs). The scope of marketing can be understood in terms of functions that an entrepreneur has to perform. These include the following: Functions of exchange: which include buying and assembling and selling? Functions of physical supply: include transportation, storage and warehousing Functions of facilitation: Product Planning and Development, Marketing Research, Standardization, Grading, Packaging, Branding, Sales Promotion, Financing.

Significance of Marketing Concept in Modern Organization The marketing concept holds that the key to achieving organizational goals consists in determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors. Under marketing concept, the emphasis is on selling satisfaction and not merely on the selling a product. The objective of marketing is not the maximization of profitable sales volume, but profits through the satisfaction of customers. The consumer is the pivot point and all marketing activities operate around this central point. It is, therefore, essential that the entrepreneurs identify the customers, establish a rapport with them, identify their needs and deliver the goods and services that would meet their requirements. The components of marketing concept are as under: Satisfaction of Customers: In the modern era, the customer is the focus of the organization. The organization should aim at producing those goods and services, which will lead to satisfaction of customers. Integrated marketing: The functions of production, finance and marketing should be integrated to satisfy the needs and expectations of customers. Profitable sales volume: Marketing is successful only when it is capable of maximizing profitable sales and achieves long-run customer satisfaction.

B. The method by which whole markets are subdivided into different segments is referred to as the STP strategy. STP refers to the three activities that should be undertaken, usually sequentially, if

segmentation is to be successful. These are segmentation, targeting, and positioning, and this chapter is structured around these key elements. Market segmentation is the division of a market into different groups of customers with distinctly similar needs and product/service requirements. The second important part of the STP process is to determine which, if any, of the segments uncovered should be targeted and made the focus of a comprehensive marketing programme. Having segmented the market and determined the size and potential of market segments and selected specific target markets, the third part of the STP process is to position a brand within the target market(s). Concept of Positioning with an Example Positioning is important because it is the means by which products and services can be differentiated from one another and so give consumers a reason to buy. Positioning encompasses two fundamental elements. The first concerns the physical attributes, the functionality and capability that a brand offers, for example, a cars engine specification, its design, and carbon emissions. The second positioning element concerns the way in which a brand is communicated and how consumers perceive the brand relative to other competing brands in the marketplace. This element of communication is vitally important as it is not what you do to a product, it is what you do to the mind of a prospect (Ries and Trout, 1972) that determines how a brand is really positioned in a market. Al Ries and Jack Trouts book, first published in 1981, remains the bible of advertising strategy. In 1972 they defined what they called positioning not as what you do to a product to make it acceptable to potential customers, but what you do to the mind of the prospect. Positioning, therefore, requires an outside-in thinking rather than an inside-out thinking approach.

Repositioning the Yorkie bar

The confectionery brand Yorkie was originally positioned as a masculine chocolate bar, established when the brand was launched in 1976 using a lorry driver as a symbolic representation of masculine values. However, this association became outdated and lacked relevance with contemporary consumers. In addition, the brand was losing market penetration. Considerable market research was undertaken to understand how society viewed gender issues, especially at a time when the media were promoting stories about increased feminine success at school, university, and at work. The impact of this, at a time when being politically correct (PC) was gaining momentum, was to emphasize the rise of feminism and to decrease the perceived role for men. A new campaign was required to reposition the brand. At the time some brands were using masculinity to position themselves and this was seen as a useful indicator to continue using the men only orientation. In the alcohol

market, for example, Vinnie Jones was fronting the Bacardi campaign, Smirnoff Ice used a cheeky chappie, and WKD have continued to use a prankster to convey a rogue identity appeal. The Not for Girls campaign was developed out of this background and used TV, press, posters, online, sponsorship idents, and PR. The campaign received a vast amount of coverage and featured in all the major newspapers and radio stations. There were over 150 newspaper articles about the campaign and over 40 radio pieces. This coverage was helped following an incident at Liverpool railway station. A sampling team refused to give bars to passing women and as a result Yorkie was branded as sexist and the advert was promptly banned. The result of the Not for Girls campaign was that Yorkies market share increased by over 40 per cent during the advertised period and over the longer term base sales have increased by an average of 20 per cent.

2. A. Product life cycle denotes different stages through which the sale of any product changes over a period of time. Generally, there are four stages in the life of each productintroductory stage, growth stage, maturity stage, and declining stage. When any product is introduced in the market, heavy expenditure is incurred on advertising and other methods of increasing the sale. This is known as introductory stage. During the growth period, sale of the product increases fast and cost of production comes down due to increase in scale of production. Profits earned increase substantially. During the maturity stage, the growth in sale of the product slows down. Profits also start declining. After the maturity stage there is a stage of decline, when the product starts losing its acceptance. There is a pressure for price cut. Firms generally start withdrawing the product after maturity stage. Some firms start preparing for introducing alternative product at the end of growth stage. Product life cycle, thus, helps in deciding about the product or products which should be offered in different markets. Examples:
1. Dixons Freeserve: In this case the product, the first free ISP (Internet Service provider) entered the market with a massive amount of publicity, with the objective of capturing as much market share as possible. The company was successful in doing this by using its large number of distribution channels, and a loss leader pricing strategy. Within 2 or 3 months Freeserve became the UKs largest Internet Service provider. The Introduction stage was very short, and growth took off virtually immediately. The third stage, Maturity, saw competition entering the market, with existing ISPs re-pricing their products, and new market entrants coming to the market with a similar business model to Freeserve. But Freeserve was able to maintain its market position, firstly through availability of the product (software CDs) through its Dixons, Currys and PC World outlets, secondly because it offered an efficient and well designed product, tailored to its users needs, and thirdly ISP users are inclined to remain with the same provider rather than switch providers, so once they have their customer Dixons are likely to keep him. Eventually Freeserve was sold to Wannadoo.

2. People Movers or Multi-Purpose Vehicles.(MPVs) The first MPV was launched by Renault in the late 1980s. The Espace, more a converted van, than a high sided saloon car, soon found a market of enthusiastic buyers. Sales quickly gathered speed, with the Espace being seen as a different and modern alternative to estate cars. The popularity of the Espace was noted by other car manufacturers, who moved quickly to try and capture their share of this growing market sector. Soon the market was flooded with MPVs, from Ford, Peugeot, Mercedes, Honda, Vauxhall and Toyota. The MPV was the vehicle to be seen with on the school run. It was fashionable. As the market became saturated, the mini MPV was introduced. Cars like the Megane Scenic captured an entirely new market. In early 2000 the market for the large MPV went into decline, buyers switched to 4-wheel drives or to mini MPVs. As a result some manufacturers withdrew from the market as models reached the end of their life cycle, leaving a small core of manufacturers to supply products to what remained of a once booming market.

B. The three additional marketing mix in marketing of service are:

People Process Physical evidence. People An essential ingredient to any service provision is the use of appropriate staff and people. Recruiting the right staff and training them appropriately in the delivery of their service is essential if the organization wants to obtain a form of competitive advantage. Consumers make judgments and deliver perceptions of the service based on the employees they interact with. Staff should have the appropriate interpersonal skills, aptititude, and service knowledge to provide the service that

consumers are paying for. Many British organisations aim to apply for the Investors In People accreditation, which tells consumers that staff are taken care off by the company and they are trained to certain standards. Process Refers to the systems used to assist the organization in delivering the service. Imagine you walk into Burger King and you order a Whopper Meal and you get it delivered within 2 minutes. What was the process that allowed you to obtain an efficient service delivery? Banks that send out Credit Cards automatically when their customers old one has expired again require an efficient process to identify expiry dates and renewal. An efficient service that replaces old credit cards will foster consumer loyalty and confidence in the company. Physical Evidence Where is the service being delivered? Physical Evidence is the element of the service mix which allows the consumer again to make judgments on the organization. If you walk into a restaurant your expectations are of a clean, friendly environment. On an aircraft if you travel first class you expect enough room to be able to lay down! Physical evidence is an essential ingredient of the service mix, consumers will make perceptions based on their sight of the service provision which will have an impact on the organizations perceptual plan of the service. Case 1: Apollo Hospitals

Product: Apollo hospital provides quality healthcare services with more than 53 branches across the country. Prominently Apollo is known best for heart problems and Knee and Hip replacement surgeries besides other major ailments. The specialties include Heart, Orthopedics, Spine, Cancer Care, Gastroenterology, Neurosciences, Nephrology & Urology Critical Care. Price: The hospital is priced premium and it can afford to do the same because of its positioning and its assurance as well as the reliability on the brand of Apollo hospitals. Along with it, it also helps that there are so many locations and specialties in Apollo hospitals. Thus a patient is reassured of his well being. Place: Apollo Hospitals has around 8500 beds across 53 hospitals in India and overseas. It is located in 15 different places across India which include Ahmedabad, Aragonda, Bangalore, Bhubaneshwar, Bilaspur, Chennai, Delhi, Hyderabad, Kakinata, Kolkata, Madurai, Mauritius, Mysore Noida. Promotions: Apollo promotes itself through the Community Initiatives viz SACH Save a Childs Heart

CURE Extends preventive as well as rehabilitative cancer treatment to the economically backward. SAHI Society to Aid the Hearing Impaired DISHA Distance Health care Advancement Project

People: Currently engages more than 19,000 doctors, nurses, paramedics, clinical staff and management professionals to manage over 8500 beds across 53 hospitals in India and abroad. Along with this Apollo Hospitals has several courses along with research facilities to facilitate innovation. Process: The largest achievement of the Apollo Group has been to take quality health care to across the length and breadth of India. This operation in itself involves very established procedures and documentation.

It has been a major player in scripting the medical landscape of the nation. This is primarily because the group has continuously been at the helm of several gamechanging innovations in Indian health care. Apollo hospitals are NABH, NABL accrediated and also has ISO 9002 award.

Physical Evidence: Apollo Hospital has been know for its quality health care services, at much affordable price.

Provides the services for all the ailments & diseases, assuring the healthy recovery with quality care from the staff. Apollo Hospitals conducts a rigorous site survey process as well to take care of various parameters in all their hospitals.

Case 2: MCDONALDS The marketing mix of a company consists of the various elements as follows which form the core of a companys marketing system and hence helps to achieve marketing objectives. The Service marketing mix in the case of McDonalds is as below Product: - McDonalds places considerable emphasis on developing a menu which customers want. Market research establishes exactly what this is. However, customers requirements change over time. In order to meet these changes, McDonalds has introduced new products and phased out old ones, and will continue to do so. Care is taken not to adversely affect the sales of one choice by introducing a new choice, which will cannibalize sales from the existing one (trade off). McDonalds knows that items on its menu will vary in popularity. Their ability to generate profits will vary at different points in their cycle. In India McDonalds has a diversified product range focussing more on the vegetarian products as most consumers in India are primarily vegetarian. The happy meal for the children is a great seller among others. Price: - The customers perception of value is an important determinant of the price charged. Customers draw their own mental picture of what a product is worth. A product is more than a physical item, it also has psychological connotations for the customer. The danger of using low price as a marketing tool is that the customer may feel that quality is being compromised. It is important when deciding on price to be fully aware of the brand and its integrity.

In India McDonalds classifies its products into 2 categories namely the branded affordability (BA) and branded core value products (BCV). The BCV products mainly include the McVeggie and McChicken burgers that cost Rs 50-60 and the BA products include McAloo tikki and Chicken McGrill burgers which cost Rs20-3 This has been done to satisfy consumers which different price perceptions. Promotion :- The promotions aspect of the marketing mix covers all types of marketing communications One of the methods employed is advertising, Advertising is conducted on TV, radio, in cinema, online, using poster sites and in the press for example in newspapers and magazines. Other promotional methods include sales promotions, point of sale display, merchandising, direct mail, loyalty schemes, door drops, etc. The skill in marketing communications is to develop a campaign which uses several of these methods in a way that provides the most effective results. For example, TV advertising makes people aware of a food item and press advertising provides more detail. This may be supported by in-store promotions to get people to try the product and a collectable promotional device to encourage them to keep on buying the item. At McDonalds the prime focus is on targeting children. In happy meals too which are targeted at children small toys are given along with the meal. Apart from this, various schemes for winning prices by way of lucky draws and also scratch cards are given when an order is placed on the various mean combos. Place: - Place, as an element of the marketing mix, is not just about the physical location or distribution points for products. It encompasses the management of a range of processes involved in bringing products to the end consumer. McDonalds outlets are very evenly spread throughout the cities making them very accessible. Drive in and drive through options make McDonalds products further convenient to the consumers. People:-The employees in Mc Donalds have a standard uniform and Mc Donalds specially focuses on friendly and prompt service to its customers from their employees. Process:-The food manufacturing process at Mc Donalds is completely transparent i.e. the whole process is visible to the customers. In fact, the fast food joint allows its customers to view and judge the hygienic standards at Mc Donalds by allowing them to enter the area where the process takes place. The customers are invited to check the ingredients used in food.

Physical evidence: - McDonalds focuses on clean and hygienic interiors of is outlets and at the same time the interiors are attractive and the fast food joint maintains a proper decorum at its joints.