Code
1.
Questions
Define Market Segmentation.
Explain different types of
Market segments?
2.
Define Product Planning.
Explain various Product Line
Polices and Strategies?
3.
Discuss
the
Consumer
Promotion Methods.
4D15 – BB0001
Answers
Meaning and defintition:
( 2 marks )
Market segmentation consists of taking the total heterogeneous market for a
product and dividing it into several submarkets or segments, each of which
tends to be homogeneous in lull significant aspects.
William J. Stanton The different types of segments are briefly as follows:
( 8 marks )
i.
Territorial or geographic segmentation: We can divide India into two
distinct regions - rural markets and urban markets.
ii. Demographic segmentation: Customers are classified in homogeneous
groups under demographic similarities like age, sex, educational level,
incomes.
iii. Socio-psychological segmentation: Different socio-classes have
different spending behavior patterns.
iv. Need-oriented segmentation: Here the segmentation is done on the
basis of needs or benefits a group seeks from the goods.
v. Volume segmentation: This involves segmenting of market judging the
event of use such as heavy, medium, light users and those who do not
use the product at all.
vi. Qualitative segmentation: In this type of segmentation emphasis is
placed on repeat purchases by the buyers.
vii. Product segmentation: This is directed towards differences among the
product that comprise markets.
viii. Lifestyle segmentation: This emphasizes segmentation on the basis of
the distinctive mode of living of segments involving questions regarding
how they spend their time, the nature of their interests and the basic
characteristics like stage in the life-cycle. Income education.
Product Planning:
( 2 marks )
Johnson defines product planning. "Product planning determines the
characteristics of products best meeting the consumer's numerous desires,
characteristics that add stability to products and incorporates these
characteristics into the finished product.
Various product line policies and strategies: ( 8 marks )
1. Product line contraction: It is a method by which either the number of
product lines or-the depth of a product line to thinned out. It is also
termed as 'simplification.
2. Product line expansion: It is just the opposite of the product line
contraction and is referred to as diversification
3. Trading up and trading down: This gives increased profitability through
additional sales volume got by changing certain features of the product
and selling it to a new market.
4. Changing models or styles of the existing products: Continuous
changes in fashion create a problem for the producer compelling him to
assess in advance such changes.
5. Quality variations: In contrast to the above, under certain
circumstances a manufacturer is forced to produce differing qualities of a
particular product)
6. Product identification: The ultimate aim of producing a commodity is
selling.
7. Test marketing: Test marketing reduces risks. Test marketing is a trial
and error method to know what is likely to happen when a new product is
introduced commercially. By this future difficulties and problems are
removed.
i
Distribution on free samples
ii
Discount coupons
iii Free gifts
iv Reduction in price
v
Trade fairs and exhibitions
vi Contest and competition
vii Special prizes
viii Cheap bargain
ix Demonstration
x
Decoration and display at the shop
Page 1 of 2
4.
Explain any five concepts of
Marketing.
xi
xii
i
ii
iii.
iv.
v.
vi.
4D15 – BB0001
Money back guarantee
After-sale –service
The exchange concept: The exchange of a product between the seller
and the buyer in the central idea of
The production concept: High production efficiency and wide distribution
coverage would sell the product offered to the market (2 marks)
The product concept: holds that consumer favours quality, performance,
innovative features etc (2 marks)
The selling concept: holds that customer, if left alone, would not buy
enough of the company’s products
The marketing concepts: It holds that the key to achieving its
organizational goals consists of the company being more effective than
competitors in creating, delivering and communicating customer value to
its chosen target markets
The societal marketing concept: holds that the organization’s task is to
determine the needs, wants and interest of target market and do deliver
the derived satisfactions more effectively and efficiently than competitors.
Page 2 of 2