(A) Short Answer Type Questions:-
Q.1 What are the various factors affectin consumer / shoppers decision making process?
Ans→ FACTORS AFFECTING CONUSMER / SHOPPER DECISION MAKING PROCESS:-
→ A consumer's purchase decision tends to be affected by these four factors:-
1. DEMOGRAPHIC FACTORS:-
Demographic factors are unique to a person. It involves indentification of who is responsible for the decision making or buying and who is the ultimate consumer.
All stores have focused themselves on respective segments based on factors such as age, income, family size, gender, occupation, etc. for example, a designer store for apparel is usually located in an up- market shopping center or mall.
2. PSYCHOLOGICAL FACTORS:-
Psychological factors refer to the inner aspects of an individual. An understanding of consumer's Psychological gudies the retailer's segmentation strategy. Consumers respond differently towards the same retail marketing due to their respective motives, personality, level of involvement and attitude.
a. Motives
b. Perception
c. Learning
d. Attitude.
3. ENVIROMENTAL FACTORS:-
Enviromental factors are both physical and social factors. This includes physical object (goods and outlets), spatial relationship (location of shopping center and merchandising stores) and social factors. The enviromental factors influence consumer wants, learning, motives, etc., which in turn influence affective and cognitive respons and therefore shopping behaviour of the individual.
4. Social Class:-
Social class is referred to as the classifcation of members of society into a hierarchy of distinct status and class. Social class is measured by variables such as education, occupation, wealth and ownership of assets. Market research has establilshed a link between social class and consumer attitudes concerning shopping behaviour. Middle class and higher sectors of society prefer to shop for grocery items once a month from a particular shop.
Q.2 What are the steps in individual selling? How are they different from the B2B selling?
Ans→ PERSONAL SELLING PROCESS - B2B.
A big advantage that can happen to the organization/ individual involved in personal selling is that the sales story or pitch can vary/ and is adjusted as per the individual or organization access the table. sales people are involved (through personal selling) right from selling a pin to an aircraft.
→ The process can be divided into various steps:-
1. PROSPECTING:-
→ Prospecting is the process of acquiring basic knowledge of potential customers for the product. One can break down business in a given geography by industry, revenue and number of employess. One can approach the defined market via either mailing or telephone convassing. Convassing is either done by the sale- person or through the sales support person.
2. PRE-APPROACH:-
→ The steps include information gathering and understanding the relevant facts about the prospects, their needs and their overall situation.
The salesperson should be aware of the mental stages through which a customer stages through which a coustomer goes in deciding to buy.
It tends to follow this pattern.
1). Interest aroused
2). Knowledge added
3). Adjustment to needs
4). Appreciation of sutiability
5). Desire to posses
6). Consideration of cost
7). Decision to buy.
3. APPOACH:-
→ A good approach makes a favourable impression and establilshes some degree of repport between sales person and the customer. Drawing attention to teh products while handling a sample or heighlighting the benefits, would increase the interest.
Detemine sales Call objcetives → Develop customer profile → Develop customer benefits → Develop sales presentation
4. NEED ASSESSMENT:-
→ Need assessment is the stage where buyers needs are understood in depth. This is almost like a voyage or discovery in the context of a new product or a new customer.
5. PRESENTATION:-
→ In this, the sales person performs a very important task. The salesperson does almost all of the talking. Usually, the entire sales pitch is "Canned,"mi.e., the sales person memorize the pitch about what has to be sold. This approach is used by many telemarkets who try to sell an in expensive product.
Q.3 Explain relationship selling with an example.
Ans→ The problem with one off selling in a situation where the customer is invited to come back again is that if they are at all unhappy than will go eleswhere next time.
→ An important part of selling where repeat sales are desired is the relationship between the sales person and the person doing the buying.
→ In a relationship -based situation, a critical factor a trust. This takes time to build, particularly for the buyer to accept that the seller will always keep their best interest at heart. If trust is threatened or broken, broken, then the sales person will have to put in a huge efforts to resuce the relationship and even then it may be lost.
→ This type of selling has to end up a variable-pie-win-win exchange. The seller wants the buyer to feel that they have got a four deal, and the buyer, although they want a good price, do not want thte seller to go out of business.
→ When we notify our clients about possible savings with bundled prining, they win because they save on costs.
→ A typical place where such relationship selling takes place is in business-to-business situation, and even more so where selling and buying are both professional activites, and full time sales people deal with full time buyers.
→ Tires, batteries, electronics, hoses and door locks, for example, are usually manufactured by various companies and solid directly to automobile manufacturers. Service providers also engaged in B2B transactions.
→ Business sales people often have monthly quotasl that they need to meet and hence may use more pressured methods than perhaps they would like.
Q.4 What is sales promotion ? How does it help in product promotion ?
Ans→ SALES PROMOTION :-
MEANING:-
→ Sales promotion includes sevral communications activites that attempt to provide added value or incentives to Consumers, wholesalers, retailers, or other orgranizatonal customers to stimulate immediate sales. These efforts can attempt to stimulate product interest, trial or purchase examples of devices used in sales promotion include coupons, samples, premiume, point of purchase (POP) display, etc.
→ The following objcetives for sales promotion are functionally applicable:-
1. INFORMING :-
→ This means educating the consumer about the product. They should be able to get enough knowledge about the product being offered by the manufacturer.
2. PERSUADING :-
→ The sales promotion persuade Consumers to try out new products. They develop or reinforce a favourable set of attitudes and influence their buyer behaviour.
3. PEMINDING :-
→ It leads the firms to reinforce the previously satisfactory behaviour of the customer. Remainders to the consumer about their past satisfaction will persuade them to stay with the product and prevent them GOM shifting to competition.
→ Retail promotion tend to focus on three particular areas :-
a). Traffic Building
b). Loyality Building
c). Tailor Modes
a) TRAFFIC BUILDING :-
→ Increased football can and does often result in Increased sales. Intant win free draws where the result are posted in the store instantly or the winner is infomed later by the phone.
b) LOYALITY BUILDING
→ Gaining Loyality is very important for each retail ranging from the frocer next door to the automobile service situation.
c) TAILOR-MODES :-
→ These are often run on a joint basis between the retailers and their suppliers. Through this both are able to meet their mutual needs.
• Variants on a national promotion tailored to the needs of specific retailer(s).
• Predesigned promotional concepts which can be used by any retailer.
Q.5 What are different promotional methodologies for a store ?
• ORIENTATION :-→ Understanding customer orientation and pitching him with the right product at the correct size or price point is the action required here and can become a powerful promotional tool.
• EDLP :-→ Wal-mart introduced this concept of everyday low-price (EDLP) where they would offer lowest price on at least 20 fast moving products every day, which made customers to not only buy more but also visit frequently to get the benefits of low prce.
• TFT DISPLAYS :-→ These are used to display schemes and product advertisements inside shop using multimedia.
• POP :-→ Point of purchase is use of partners, buntings and display cards. These are good tool which display product on offer and create awarners to customer.
• ENTRY GATES :-→ These are used to demonstrate seasonal shemes and offers as entry gate. Prices of popular products sold at low prices and displayed om the windows or through display boards.
• COMPLEMENTARY GIFTING :-→ Promotional gift like a small alarm clock or a pen to every buyer also makes a big difference in bringing clientable to your shop.
• LOYALITY MEMBERSHIP :-→ These are customer retention programs which can provide a customer with points and discounts on purchases made which may be redeemed at the store.
• PARK HOUR MANAGEMENT :-→ This is very important to allocte responsibilites amongest sales people at the time of peak hours so that there is no customer that goes unattended. Hence sales people need to spread out at all comers of shop and one at the gate so that every entry and autage from shop can be effectively managed.
• CONSULTANT APPROACH :-→ Modern day retailing where customers directly touch, feel and experience products and choose what they want to buy. Sometime they are confused and are not able ot make a decision to choose, the front and sales people have to play the rate of consultant.
Q.6 Discuss teh various pricing strategies
OVERALL PRICE STRATEGTES :-→ There are number of pricing strategies you can use to achieve growth goal. Some strategies you may want to consider are listed below :-
• Price Skimming
• Penetration Pricing
• Loss Leader
• Multiple unit Pricing
• Suggested retail Pricing
• Discounts pricing
• Full-cost Pricing
• Keystone Pricing
• Price Lining
• Competitive Advantage
• Pre-season Pricing
• Price is no object.
1. PRICE SKIMMING :-
→ Price skimming is a pricing strategy in which a retailer sets a relatively high prices for the products or service at fort, then lowers the price over time.
2. PRESENTATION PRICING :-
→ The expectation is that the inital low price will secure market acceptance by breaking down existing brand loyalities. Penetratiny pricing is the most commonly associated with teh marketing objective of increasing market share rather than short term profit maximization.
3. LOSS-LEADER PRICING :-
→ Once the customers are in the store, they can be persuaded to buy more profitable products. Sometimes the fast moving products are sold at a cost price or even at a loss. so, these are called as less-leaders.
4. MULTIPLE UNIT PRICING :-
→ Offering a lower price per unit for the purchase of two or more products of the some type when bought together than when units are bought singly.
5. SUGEGESTED RETAIL PRICING :-
→ The manufacturer's suggested retail price (MSPR) is the price that a product's manufacturer recommends it be sold for at point of sale. The MSRP is also referred to as the list price by soem retailers.
6. DISCOUNT - PRICING :-
→ Business use discount pricing to sell low-priced in high volumes with this strategy, it is important to decreases costs and stay Competitive.
7. FULL COST PRICING :-
→ A pricing strategy in which all relevant variable costs and a full share of fixed costs directly attributable to the product are used in setting its selling price.
8. KEYSTONE PRICING :-
→ The Pricing strategy that made olden days of retail quite hassle - free and lucrative was this method of price detemination - keystone pricing, a product is priced - at directly double the wholesale price.
9. PRICING LINING :-
→ The prices may be hold constant over a period of timem and changes is market conditions are adopted to by changing the quality of the merchandise.
10. COMPETITIVE PRICING :-
→ Competitive prices are used as a bench mark to price your product instead of pricing based on coutomer research, demand or value.
11. SEASONAL PRICING :-
→ That means charging different prices for products and service depening on wheather it's high season or low season.
PRICE IS NO OBJECT :-
→ This refers to certain marketing situation in which the quality of product service is for important then the price.
Q.7 Discuss the popular sources of sales promotion used by retailers.
Ans → Sale promotions can be defined as specific time- limited activites designed to increase customer demand for specific products or for all store items in general.
Retails often use external advertising to publicize the promotion to their customers. Sales promotions are specific, time- limited, activites designed to increase consumer demand for specific products or for store items in general. However, the distinguishing feature of the promotion is that these always some extra incentives for customer to visit teh store or buy certain specific products or services when they get these.
The role of sales promotion is important in stimulating sales and recognition of the retail. However, hte short- term nature of sales promotion means that they are more useful for short term promotion rather than longer - term development.
• Sales promotion are by their nature short-lined. The effect of one - off promotions will therfore be short- lined. The effects of one - off promotions will therefore be short-lined. This is satisfactory to retailers when the purpose is to off load - end - of - line merchandise and similar unwanted or short - lined stock.
• Promotions can also be used to reward existing customers. loyality bonuses can reflect use of loyality cards; or using store cards with which to make purchase.
• Promotions can be an effective means of price discrimination. The 'must have' customers will buy at any time. The more price - sensitive customer will wait untill promotion period to buy. Using promotions sensitively in this way enables the retailer to enlaring its market.
• Publicity may be either pro active or reactive pro active Publicity occurs when the retailer undertake any planned activity designed to improve publicize Perception of the retailer.
• Reactive Publicity occurs when the retailer has to respond to any unplanned event or stay story that affects the reputation of the organization. This includes events such as the negative Publicity that organized retailers will wipe out small local retilers. This even led to violent anti-retailer protest in many parts of the country. The retailer must have a system that enables it to react quickly to any event or story tha may effect the reputation of organization.
• Sponsorship is an increasingly important from of Publicity. Retailers can now access professional organization to help with sponsorship.
(B). ESSAY TYPE QUESTIONS :-Q.8 Explain the concept of marketing ? What are the various steps in marketing process ? Explain the core marketing concepts.
Ans ThE CONCEPT OF MARKETING :-
→ The diagram below should help you in understanding the concepts of following :
The concept of marketing revolves around demand for the product/ services. The major concepts of marketing which will be dealt in detail later on:
→ NEEDS, WANTS AND DEMANDS :-
• Human need is a state of felt deprivation of some basic satisfaction.
• Wants are desires for specific satisfiers of these deeper needs.
• Demans are wants for specific products that are bagged by an ability and willingness to buy them.
• Products- Anything that can be offered to satisfy a need or a want, is a product other terms can be Offerings, satisfiers or resources.
→ VALUE & SATISFACTION :-• Customer vaue- Difference between the values the customer gains form owning and using a product and the costs of obtaining the product.
• Customer satisfaction- Customers expectation must be set at the right level of expectations, either too low or too high.
• It is the process of obtaining a desird product from someone by Offering something in return.
→ TRANSACTION :-• A transaction is a trade of values between two or more parties. It involves two things :
• A time orf agreement.
• A place of agreement.
• Set of all actual & potential buyers of a products or service
. They share a particular need or want that can be satisfied through exchange relationships.
→ The effective marketing starts with the indentification of counsumer and his need. The marketing process consists of four steps :-
1. Analysing target markets.
2. Selecting taret markets.
3. Developing the marketing mix.
4. Implementin and controlling.
→ Marketing analysing talks about finding out the concepts position of the company in hte form of current market share, market power, the relevant strengths and weakness of the company in relation to competitors and market apportunity.
2. SELECTING TARGET MARKETS :-→ At the second stage the marketer has to decide about the target, the company's business mission, the category of customers market it want to serve, the type of strategy to arrive at the set goals.
3. DEVELOP THE MARKETING MIX :-→ The third step in the marketing process is deciding the marketing mix. It is easier to divide the marketing activites in th 4 basic elements :-
a. Products
b. Price
c. Promotion
d. Place ( Distribution ).
→ The implementation revolves around the executing the strategy and the resources for achieving the marketing goals or targets. The marketing control, which is a process of bench marketing the expended efforts and resources with the set goals.
Q.9 Define personal selling ? What are the various objcetives of personal selling ? Explains the importance of personal selling from the view of consumers and manufacturers.
Ans. PERSONAL SELLING :-→ Personal selling, is a promotional method in which one person (e.g. sales- person) was skills and techniques for building personal relationship with another person (e.g., a customer or those involved in a purchase decision) that result in both obtaining value. In most cases the values
for the sales- person is realized from the benefits obtained by the financial reward of hte sale while the customer's value
is realized from the benefits obtained by consuming the product.
The person who sells good to you in any of the above techniques is called a 'salesman' and the techniques fo selling is known as 'personal selling' or 'salesmanship'. Among marketing - related jobs, more are employed in sales positions than any other marketing - related occupation.
A personal sales message can be more specifically targeted to individual prospects and easily altered if the desired behaviour does not occur.
• Personal selling is used to meet the five objcetives of promotion in the following ways.
a) Building Product Awarness
b) Creating Interest
c) Providing Information
d) Stimulating Demand
e) Reinforcing the Brand.
→ A common task of salespeople, especially when selling in business markets, is edicate customers on new product afferings. Building awarners using personal selling is also important in consumer market.
b) Creating Interest :-→ Creating Interest goes hand - in hand with building product awarness as sales professional can often occomplish both objcetives during teh first encounter with a potential customer.
c) Providing Information :-→ Market organization provide their sales staff with large amount of sales support including bro chures, research, repport, computer program and many other forms of informational material.
d) Stimulating Demand :-→ By for, the most important objcetives of personal selling is to convince customers to make a purchase.
e) Reinforcing the Brand :-→ Most personal selling is intended to build long term relationship with coustomers. A strong relationship an only be built over time and requires regular communications with a counsumer or customer.
* IMPORTACNCE OF PERSONAL SELLING :-
→ Unlike advertising, personal selling is present in all the three- phases of buying namely pre- transactional, transactional and post transactional. Being a two - way from of communication, it cultivates teh market, negotiates the transaction and reduce post post purchase dissonance. However, it is in negotiation of transaction that distinguishes it from advertising and makes personal selling an effective medium of selling.
Personal selling is more flexible is adaptable to hte varying purchase, situations. It is possible for a salesman to adapt himself to the needs, motives, impulses and other behavioural traits of the prospective consumer so as to communicate the message and linch the deal.
In personal selling the possibility of wasted effort is minimal because unlike advertising the whole efforts is focused on a specified targeted consumer.
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