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MCO-06: Marketing Management

MCO-06: Marketing Management

IGNOU Solved Assignment Solution for 2021-22

If you are looking for MCO-06 IGNOU Solved Assignment solution for the subject Marketing Management, you have come to the right place. MCO-06 solution on this page applies to 2021-22 session students studying in MCOM, MCOMFT, MCOMMAFS courses of IGNOU.

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MCO-06 Solved Assignment Solution by Gyaniversity

Assignment Solution

Assignment Code: MCO-06/TMA/2021-22

Course Code: MCO-06

Assignment Name: Marketing Management

Year: 2021-2022

Verification Status: Verified by Professor

Attempt all the questions:

Q1. What is marketing research? What steps are involved in conducting a marketing research study? (20)

Ans) Data collecting is a methodical procedure in marketing research. We defined'systematic' as a rigorous and planned approach of marketing research. It is decided ahead of time what the marketing problem is and what information is needed to solve the problem. It is also decided in advance which methods and sources will be used to acquire the needed information. These are the elements that we will go through in depth. In contrast to marketing research, the marketing intelligence system does not require systematic data collection. Furthermore, when using a marketing intelligence system, it is unclear what information should be collected, as well as what source(s) and method(s) should be employed to acquire the data. While talking to salesmen, dealers, and customers and going throughout the market, one gathers whatever information is available. The following are the steps involved in conducting a marketing research study:

Identification and Defining the Problem:

The market research process begins with the identification and definition of an issue that the organisation is experiencing. Because just the symptoms of the difficulties are typically visible at that point, a clear definition of problem may not be attainable at the start of the study process. Then, after some explanatory research, a precise characterization of the problem is critical in marketing research because it is a time, energy, and money-intensive procedure.

A clear characterization of the problem aids the researcher in all subsequent research activities, such as the establishment of appropriate study objectives, the selection of appropriate procedures, and the scope of data to be collected. It should be mentioned that secondary data surveys, experience surveys, and pilot studies, i.e. investigations with a small initial sample, are all prominent approaches of explanatory research. All of this is referred to as a "preliminary investigation."

Statement of Research Objectives:

The researcher must make a formal statement of research objectives after recognising and characterising the problem, whether with or without explanatory research. These goals might be defined as research questions, statements, or hypotheses and can be expressed in qualitative or quantitative terms. For example, a research purpose articulated as a statement is "to determine the extent to which sales promotion methods influenced sales volume." A hypothesis, on the other hand, is a statement that may either be rejected or validated by empirical evidence. "To test the claim that sales are favourably benefited by the sales promotion schemes implemented this winter," could be put as a research goal.

Another theory can be: "Sales and profitability have increased as a result of the new package layout." The researcher is now ready to choose a research design once the objectives or hypotheses have been established.

Designing the Research Study or Planning the Research Design:

The research design must be designed when the study challenge and objectives have been defined. A research design is a master plan that lays out the steps for gathering and analysing the data. It serves as a framework for the research strategy. The research design includes the study's objectives to guarantee that the data obtained is relevant to the goals. The researcher should also determine the sort of information sources required, the data collection method (e.g., survey or interview), sampling, methodology, and the research's timing and potential expenditures at this point.

Planning the Sample:

Sampling entails processes that use a limited number of things or sections of the 'population' (total items) to draw conclusions about the 'population.' In this sense, it's important to consider who should be sampled as a properly representative lot. What is the 'population' that is being targeted? What sample size should be used—large or small? How do you choose the different units that make up the sample?

Data Collection:

Data collection refers to the gathering of information that will be used to solve the problem. As a result, market research methodologies are essentially data collection approaches. Secondary data can be gathered from relevant reports, journals, and other periodicals, including written articles, government publications, company publications, novels, and so on.

Data Processing and Analysis:

Once data has been gathered, it must be translated into a format that will suggest solutions to the problem that was originally identified and specified. The editing and coding of data is the first step in data processing. Editing include looking over the data gathering forms for omissions, legibility, and classification consistency. Responses must be categorised into relevant categories before being tabulated. Codes are the rules for categorising, recording, and transferring data to 'data storage media.' The manual or computer tabulation is made easier with this coding technique. The data can be key punched and checked if computer analysis is performed.

The application of logic to the comprehension of data acquired about the subject is known as data analysis. In its most basic form, analysis may entail identifying consistent patterns and summarising relevant facts. The proper analytical procedures would be determined by the problem's informational requirements, research design characteristics, and the type of the data acquired. The statistical analysis might range from a simple instantaneous analysis to a multivariate analysis that is extremely sophisticated.

Formulating Conclusion, Preparing and Presenting the Report:

The final step in the marketing research process is to evaluate the data and create conclusions that can be used to make managerial decisions. The research report should properly describe the research findings and should not include confusing statements regarding the study's technical aspects or research methodologies. Frequently, the management is more interested in the tangible findings of the research than in the details of the research design and statistical analysis. The researcher may, if necessary, make relevant recommendations or suggestions in this regard. The presentation must be technically correct, intelligible, and valuable to the audience.

Q2. “Developing an effective advertising campaign requires a stream of interconnected decisions on such matters as objective setting, budget setting, media decisions as well as decisions on strong creative strategy”. Elaborate. (20)

Ans) Creating an effective advertising campaign necessitates a series of interconnected decisions on issues such as goal formulation, budgeting, medium selection, and good creative approach. The following are the choices you should make while creating an advertising campaign:

(Objective) Decision on Mission

Any advertising campaign's initial decision is this. This should be derived from the company's overall promotion goal. The goals of advertising are briefly discussed at the start of the unit. The marketer establishes sales and communication objectives, which lead to the next decision stage.

Budgeting and Financial Decisions

There are several approaches to deciding on an advertising budget. The goal that we set for the campaign will have a big impact on this decision. For example, if a new product is being launched, the advertising campaign must be extensive, however if a repeat campaign is being launched, it is preferable to spend less. The following are the most commonly utilised advertising budgeting methods:

  1. Percentage of Sales Volume: The percentage is calculated using a company's historical budget, industry norms, or current market conditions. If the market has begun to rise, a one percent increase in the advertising budget will be made. Consumer durable companies utilise the unit of sale approach as a variation on sales percentage. While it functions similarly to a sales percentage, the company adds an amount of advertising charges to the unit as an add-on.

  2. Competitive Parity Method: The firm must thoroughly examine competitive information such as sales, distribution patterns, and advertising. The association between competitive sales and advertising effort will be provided by Tt.

  3. Historical Method: In this method, the previous year's advertising budget is used for the current year, with the assumption that there has been no change in the market and that market growth is modest, therefore an increase in the budget is unnecessary. To compensate the rise in media rates, the budget from last year might be boosted by a factor.

  4. Method of Affordability: Some businesses assume that advertising is tactical rather than strategic, and hence does not require much attention. These businesses adhere to a cost-cutting strategy, spending just what is left after taking care of the administrative costs of paying the components of production.

Total Group Budget: In multi-location and multi-product line businesses, a total advertising budget is set, and each strategic business unit receives a share based on their requirements. This strategy enables the group to set aside a portion of the budget for corporate group advertising in order to improve the organization's image.

Percentage of Expected Turnover: In dynamic marketplaces, this strategy is advantageous since the budget may be set based on the expected demand pattern.

Elasticity Method: This method takes into account the seasonality of company as well as the regularity of customer buying cycles. This strategy, which considers demand and supply, is more commonly utilised in industrial items. Market research provides numbers for advertising expenses, market reaction, and revenues per advertisement, and operational modelling is used to justify the budget.

Composite Method: In determining the advertising budget, this method considers indices such as the firm's past sales, future sales projections, production capacity, market environment, sales problems, sales personnel efficiency levels, seasonality of the market, regional considerations, changing media scenario and changing media impact on the target market segment, market trends, and results of previous advertising and marketing programmes.

Objective and Task Method: This method is more commonly used by marketers since it is a scientific method in which the advertising goals are specified explicitly and the cost of achieving the target is also stated. They add up the quantities needed for each activity, such as expanding the geographic sales area or growing market awareness by a specific percentage over the figure received from the brand tracking study. The following diagram depicts the procedure:

  1. Decision on the Message: The creative process entails the generating of ideas as well as the development of an advertising message or concept. Advertising copy writers, art directors, and other creatives are tasked with answering two questions: "What to say" and "How to say it." These two aspects of the creative strategy are reflected in these questions. Answering the above two issues is the responsibility of advertising copywriters, art directors, and other creative individuals.

  2. Decision made by the media: The media decision entails deciding on the message's communication route. The advertiser's message, the type of audience he wants to reach, the desired effect and its nature, and the funding to support the media choice must all be considered in the media selection strategy. The decision to use which media or set of media to deliver the message to the audience involves two issues: which media or set of media will effectively deliver the message to the audience, and which media scheduling will neither create a dislike for the advertisement nor cause the audience to forget the message.

The term "medium" in advertising refers to a communication channel or "vehicle" via which the advertiser's message is delivered to his target audience. Even the most brilliant and original advertising concepts will be squandered if they are not given in the "right location, at the right time, to the right people at the lowest feasible cost." It's worth noting that the acquisition of advertising media, space, and time accounts for the majority of advertising spending. The media, as well as the message, play a role in the success of an advertisement.

Decision on Effectiveness Measuring

The ways to test the efficacy of advertising are the final choice in the advertising process. Because advertising has such a high price tag, this is important. If a corporation runs a campaign that is ineffective, all of the money spent will be wasted. In addition, there is an opportunity cost associated with advertising. A successful campaign would have generated additional sales that would otherwise have been lost due to a poor campaign, and it would have given the competing brand a chance to win over customers in the absence of a solid advertising effort. As a result, managers should conduct a test of the communication message's effectiveness prior to launching the campaign. Similarly, it's critical to research a campaign's influence on customers so that, if necessary, remedial actions may be performed and improvements to the communication message can be made in the following rerun.

Q3. Write short notes on the following: (4X5)

(a) Buying Behaviour Situations

Ans) Marketers must understand that consumer decision-making differs depending on the type of buying behaviour and the purchase situation. When purchasing a soap, apparel, a scooter, a computer, or a large household appliance, the buyer's decision-making process differs significantly. When acquiring sophisticated and expensive products, purchasers are generally more involved, and more members of the family are expected to participate in the decision-making process. The perception of major disparities among accessible brands in a certain product category has an impact on consumer decision-making. These two dimensions are based on (i.e., degree of buyer involvement and the degree of differences among brands) The following are four buying behaviour situations:

  1. Complex Buying Behaviour: Buyers are very involved with the product because it is expensive, purchased infrequently, risky, and self-expressive. Complex Buying Behaviour: In this case, buyers are highly involved with the product because it is expensive, purchased infrequently, risky, and self-expressive. Second, shoppers notice big variations in the various brands and Selecting Target them. As a result, purchasers form beliefs about the product first, then attitudes about it, and lastly make a well-considered decision.

  2. Dissonance-Reducing Purchasing Behavior:While buyers are still quite interested in the purchase, they may regard most brands in the given price range to have similar product features. This is likewise the case with pricey and infrequently purchased things. The customer spends less time buying the product, but afterwards has some post-purchase dissonance if he observes certain unsettling features or hears positive things about other companies that have been dismissed.

  3. Buying Behaviour in Search of Variety: This circumstance pertains to low-involvement products. Marketers should strive to induce habitual purchase behaviour by monopolising store shelf space, keeping shelves fully stocked, running reminder commercials, and launching consumer sales promotion programmes.

  4. Habitual Buying Behavior: This applies to low-involvement products as well as situations when buyers do not see major differences between brands. Advertisement repetition, competitive pricing, and frequent consumer sales promotion campaigns should all be used by marketers of such products to build brand recognition.

(b) Mass Marketing

Ans) Mass marketing is a generic marketing strategy in which a company ignores specialist marketing and market segmentation in order to appeal to the whole market with a single strategy or offer. A approach aimed at attracting a large section of the audience is known as mass marketing. Its goal is to reach out to as many potential clients as possible while ignoring niche demographic variations. This type of marketing strategy focuses on a bigger volume of sales at cheaper pricing in order to get the product as much exposure as possible.

Mass marketing is particularly efficient at promoting things that are perceived as essential and for which consumers are likely to shop regardless. The following are some frequent features of mass marketing products:

  1. Product Development: Mass marketing is usually connected with general-purpose items that appeal to a large number of people.

  2. Designing: The goal of a mass marketing strategy is to make it as accessible as possible.

  3. Pricing: The pricing element entails a variety of inexpensive solutions for a wide range of customers.

  4. Promotion: Broadcasting media is often associated with mass marketing due to its ability to reach a larger audience.

Mass Marketing Examples

Because telecommunication services are used by such a large number of individuals, telecom operators use mass marketing campaigns. Several FMCG products, such as soaps and detergents, also use mass marketing. This marketing technique is employed by body deodorants, as well as many other personal hygiene products, because they are used by a large market group.

Another notable example of mass marketing is Coca-Cola. Its television commercials, which are designed to appeal to everyone, can also be seen throughout the winter vacations. Coca-mass Cola's marketing effort has shown to be incredibly powerful and successful over time because it is a product that spans various niches in terms of appeal.

In industries such as consumer durable goods, fast moving consumer goods, and various types of services, mass marketing of items is particularly frequent. Products that must meet the needs of customers, on the other hand, require a differentiated marketing strategy.

(c) Internet marketing

Ans) The term "internet marketing" refers to marketing that takes place solely online. To put it another way, marketing efforts conducted primarily over the Internet. Several tactics are used in internet marketing to drive traffic to the advertiser's website. It also includes marketing activities aimed at driving traffic to websites where customers can buy the advertiser's goods. Digital marketing is similar to traditional marketing, but it also includes non-Internet electronic advertising.

The word "internet marketing" refers to all forms of online product and service promotion. This comprises a variety of client communication techniques and platforms, such as a website, email, social media, and online advertising.

The tactics used to advertise products and services online and through other digital means are referred to as internet marketing. These can encompass a wide range of internet platforms, tools, and content distribution methods, such as:

  1. Website content and design

  2. Email marketing

  3. Social media

  4. Blogging

  5. Video/podcasting

  6. Online ads

  7. Sponsorships and paid promotions

While the obvious goal of internet marketing is to sell products and services or to advertise on the internet, this isn't the only reason a company will do it.

A corporation may use web marketing to spread a message about itself (branding) or to undertake research. Online marketing can also be used to select a target market, learn about the desires and needs of a marketing segment, develop long-term consumer connections, and create authority and knowledge within an industry.

Customers' online activity is used in internet marketing to link them with a business by reaching out to them in a number of areas on the internet. The forms of internet marketing a company use will be determined by its business strategy, products, target clients, budget, and other factors.

(d) Functional Middlemen

Ans) In a distribution or transaction chain, a middleman acts as an intermediary, facilitating communication between the parties involved. Middlemen are experts at completing critical functions in the purchase and selling of goods as they move from manufacturers to final buyers. They usually don't make anything but have a lot of market expertise, therefore they charge a commission or a fee for their services.

An organisation operates a business by producing goods and services for its clients. Before reaching the final customer, the manufactured items pass through several phases. The product is conveyed from the producer to the end consumer through all of these stages, which are referred to as distribution channels. In the distribution channels, there are a variety of players, the most important of which is a middleman. As an intermediate between the goods supplier and the goods buyer, the middleman performs a crucial function. He or she is in charge of transferring products from the vendor to the product's buyer.

Different Types of Middlemen

There are two types of middlemen: merchants and agents.

  1. Merchants: Wholesalers and retailers, for example, are merchants who acquire and resell their products. They take ownership of inventories and are responsible for the costs of storage and distribution. They gain money by selling the things for more than they paid for them. The distinction is referred to as "markup." A shopkeeper to a major multinational firm with international activities are all examples of merchant middlemen. Larger middlemen may specialise on a specific market area or main skill, such as delivery, advertising, or storage.

  2. Agents: Agents specialise in transaction discussions, such as brokers or real estate agents. They don't accept responsibility for what they're selling. Instead, they profit by collecting a charge or commission for facilitating a transaction. Brokers, for example, operate as go-betweens for investors and the stock exchange. They charge a brokerage fee in exchange for providing trading services, investment advice, and solutions to its clients.

Q4. Differentiate between the following: (4X5)

(a) Product and Production concept of marketing

Ans) The differences between product concept and production concept are listed below:

  1. Even though the product's price is high, a high-quality product will sell itself, according to the product concept. In the production idea, on the other hand, if a company produces in large quantities, the cost of production will be lower, attracting customers and making it easier to sell.

  2. Consumers will always desire products that offer the best value in terms of quality, performance, and new features when it comes to product concepts. In terms of production concepts, consumers will prefer products that are readily available and cost-effective.

  3. Customers can follow the product concept through improvements in the product. Under other circumstances, the production concept will be implemented through increasing the product's efficacy and distribution coverage.

  4. The product concept's purpose is to provide customers with high-quality items that are rich in features and function well. And the production idea aims to achieve economies of scale by increasing the number of units produced and enhancing the supply chain.

  5. In a product concept, the product normally takes precedence, whereas in a production concept, the creation of commodities takes precedence.

  6. The advancement of the product in terms of its features, performance, and quality are the means to attain the ultimate goals in the product concepts approach. Production should be done on a wide scale in order to ensure obvious availability and affordability of the product in production concepts, maximising initiatives.

  7. The idea for an item or product is known as a product concept. The concept of conceiving to manufacture the product is known as a production concept.

  8. When a company's demand for a product exceeds its supply and the product's cost is too high, the manufacturing idea comes in handy. That is not the case with the product concept.

(b) Micro environment and Macro environment

Ans) The differences between micro environment and macro environment are listed below:

  1. The micro-environment is a small area of land that is in close proximity to an organisation. The macro-environment, on the other hand, is something that affects the entire organisation and can have an impact on all business processes.

  2. Micro-environmental factors can have an impact on a single business, but macro-environmental elements have an impact on entire business groups.

  3. The micro-environment factors are under the control of the organisation, whereas regulating macro-environment factors is nearly impossible.

  4. Customers, suppliers, competitors, and other internal elements make up the micro-environment, whilst political, social, and economic factors make up the macro-environment.

  5. The strengths and shortcomings of an organization's internal environment are the focus of micro-environment considerations. Macro-environmental elements, on the other hand, are worried about opportunities and risks in an organization's external market.

  6. The organization's growth, success, and existence are influenced by both the micro and macro environments. Despite their differences, they are mutually beneficial. An organisation can build a marketing plan by researching these environmental aspects and doing a SWOT (strength, weakness, opportunity, threat) analysis of its firm.

(c) Market segmentation and Market targeting.

Ans) The differences between market segmentation and market targeting are listed below:

  1. Market segmentation is the process of breaking the whole market into segments depending on numerous characteristics, such as demographic, behavioural, psychographic, geographic, and other factors. The practise of determining the suitable market segment to promote and offer products/services is known as target marketing.

  2. Market segmentation occurs before target marketing, which means that a corporation divides the market into several groups, each of which contains individuals with comparable attributes, characteristics, requirements, interests, and so on. The next step is to identify the market that will be targeted by the company for the marketing of its products or services.

  3. The goal of market segmentation is to divide the market into separate groups and select which customers to target with their products. Target marketing entails the creation of marketing techniques that are tailored to the preferences of the market segment that the organisation is attempting to reach.

  4. Market segmentation entails the division of the entire market into segments based on common features. Target marketing, on the other hand, is marketing and selling things to a more defined set of people at the micro level (i.e. the specified market segment).

(d) Captive Product Pricing and Product-Bundle Pricing

Ans) The differences between captive product pricing and product-bundle pricing are listed below:

Captive Product Pricing:

Certain goods cannot be utilised without the usage of other products. Safety razors with razor blades and shaving cream, toothpaste with toothbrush, cameras with films, computers with software, fountain pens with ink, and so on are examples of such products. Manufacturers of such complementary products may employ a captive product pricing strategy, in which the primary product is sold at a low price while the supplies are sold at a higher price.

Companies that focus solely on their main product will be priced out of the market. This is also the technique used by corporations in the durable consumer goods industry (such as cars, television sets, refrigerators, and so on), where the cost of replacement parts, components, and servicing is quite high while the cost of the primary items is very low.

The method is known as two-part pricing in the case of services. The service's cost is divided into two parts: a set fee and a variable usage fee. Telephone companies, for example, impose a fixed monthly rent plus charges for calls made over and above the minimum number of free calls during the period. The service provider must keep the basic service charge low enough to attract clients, with variable usage fees accounting for the majority of earnings.

Product-Bundle Pricing:

With this method, sellers can combine multiple of their products into a single package and sell it for a discounted price. During the holiday season, for example, it is usual to see retailers package durable products like refrigerators, washing machines, and televisions for a single price that is significantly less than the total price you would pay for each item separately. Package trips, which include air travel, accommodation and food, sightseeing, insurance, visa fees, airport taxes, and local travel, are frequently offered by tour operators. The entire package price is frequently discovered to be significantly less than the sum of the individual item pricing. If the product bundle is priced attractively, all of the things in the bundle will sell.

Q5. Comment briefly on the following statement: (4X5)

(a) Different phases of development in Indian market are indicators that there is a revolution undergoing in Indian market.

Ans) For marketing students, the evolution of marketing in India and the advent of the Indian market as a worldwide corporate force are fascinating topics. In the development of the Indian market, there are three different periods. The first phase corresponds to the period of independence, during which the economy was self-sustaining. The output was regulated by the imperial authority, and a vast percentage of clients lacked sufficient purchasing power. Customers were mostly farmers, with only a few salaried employees in the British establishments. The majority of the products were British, and they held significant holdings in important corporations. Because there were few alternatives, consumers didn't have much of a choice. It was a seller's market with a strong emphasis on product, and customer welfare was virtually unheard of.

The second phase began soon after independence, when the new government decided to follow socialist ideals, with the government owning the majority of large businesses. For private participants, there was a rationing and quota system, and production was constrained to the whims of government choices. The majority of marketplaces remained seller's markets. Due to government protection and the lack of legal competition, the vendor was in a dominant position. With product options, price offers, and availability, the seller dominated the consuming pattern. There were just a few manufacturers who cared about the quality of their products and the satisfaction of their customers. The direct admission of foreign participants was prohibited in order to safeguard the domestic sector.

Due to the rise of a substantial middle class with a consistent and predictable income pattern, the urban Indian market was undergoing drastic changes. Appropriate savings, support from rural agricultural income flows to the urban middle class, and subsidies provided by the welfare state to this class enhanced consumption and demand for previously unheard-of products. The market's strength increased as consumers gained a better understanding of their rights and the government's redress mechanism. Until the early 1990s, many things became the mark of the class, and a faux consuming culture arose in the Indian market. Whatever the case may be, the liberalisation process caused Indian industry and consumers to wake up to the global realities in the early 1990s.' The third phase of the project has begun.

(b) Marketing research is quite pervasive in nature and can be used by the marketing managers in various marketing decision areas.

Ans) Marketing research is widespread in nature, and it may be utilised by marketing managers at various levels of the management hierarchy to accomplish a variety of tasks. Marketing research is a significant aid to marketing managers in executing their obligations, whether it's marketing planning, organisation, or control. Market research, customer research, product research, price research, advertising research, distribution research, and sales research are only a few of the key applications of marketing research.

A marketing researcher must follow a number of procedures known as the marketing research process to guarantee that the research offers all important and objective data to decision makers. (1) problem description, (2) study design, (3) field work and data collecting, (4) data analysis, and (5) report preparation and presentation are the primary steps in the marketing research process.

With the liberalisation and opening of markets, Indian businesses have begun to use marketing research more extensively. Several research organisations have sprung up to provide clients with both syndicated and customised research services. Because India is such a large and diverse country, conducting research there is a difficult endeavour fraught with infrastructural and cultural challenges. However, with rivalry for practically all types of products heating up, marketing research is set to rise significantly in the future.

(c) Consumers are being influenced by a number of psychological factors in the purchase of various products and services.

Ans) In the purchasing of various items and services, consumers are impacted by a number of psychological aspects. These characteristics have varying degrees of influence on customers, with some influencing more and others influencing less. The impact of these variables varies from product to product and throughout time. Buyer behaviour can be influenced by four psychological aspects. Motivations, perception, learning, and beliefs and attitudes are the four categories. Let's take a closer look at them.

A consumer may be motivated to purchase a specific product or service. One question that comes to mind is why s/he wants to buy this product or service in the first place. One possible response is that s/he is motivated to purchase this item. So, what exactly is motivation? Motivation can be defined as the internal driving force that propels people to do action. Individuals strive-both consciously and unconsciously-to lessen this tension by engaging in behaviour that they think will meet their needs and hence relieve them of the stress they are experiencing. Individual thinking and learning determine the exact goals people choose and the patterns of action they follow to achieve those goals. Whether or whether pleasure is obtained is determined by the course of action taken.

For example, a high school child who hopes to become a great cricket player by wearing the same brand of sports shoes as Sachin Tendulkar is likely to be disappointed; nevertheless, if he takes cricket lessons and practises regularly, he may succeed.

Several motivation theories have been created by psychologists, Abraham Maslow's Hierarchy of Needs theory and Sigmund Freud's Psychoanalytical theory of Personality are two of the most popular motivation theories that are important in the context of customer behaviour. These two theories regarding marketing and customer analysis have diverse meanings and interpretations.

(d) Marketing of services is no different from marketing of products, the strategies of the 4 P's, however, require some modifications when applied to services.

Ans) The services marketing mix are as follows:

  1. Product: In the case of services, the “product” is intangible, heterogeneous and perishable. Moreover, its production and consumption are inseparable. Hence, there is scope for customizing the offering as per customer requirements, and the actual customer encounter therefore assumes particular significance. However, too much customization would compromise the standard delivery of the service and adversely affect its quality. Therefore, particular care has to be taken in designing the service offering.

  2. Pricing: Pricing of services is tougher than pricing of goods. While the latter can be priced easily by taking into account the raw material costs, in the case of services there are attendant costs–such as labor and overhead costs–that also need to be factored in. A restaurant not only has to charge for the cost of the food served but also has to calculate a price for the ambiance provided.

  3. Place: Since service delivery is concurrent with its production and cannot be stored or transported, the location of the service product assumes importance. Service providers have to give special thought as to where the service is provided. A fine dining restaurant is better located in a busy, upscale market as opposed to the outskirts of a city. A holiday resort is better situated in the countryside away from the rush and noise of a city.

  4. Promotion: Since a service offering can be easily replicated, promotion becomes crucial in differentiating a service offering in the mind of the consumer. Service providers offering identical services such as airlines or banks and insurance companies invest heavily in advertising their services. This is crucial in attracting customers in a segment where the services providers have nearly identical offerings.

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