MARKETING MANAGEMENT

Introduction (2–3 MARKS)
The Product Life Cycle (PLC) is a fundamental marketing concept that describes the stages a product goes through from the time it is first introduced into the market until it is finally withdrawn. Just as human beings pass through infancy, childhood, adolescence, maturity and old age, every product has a life cycle consisting of four distinct stages: Introduction, Growth, Maturity and Decline. The concept helps marketers forecast sales, profits, competition and consumer behaviour at each stage and formulate appropriate marketing strategies.

Stages of Product Life Cycle (8 MARKS)

1. Introduction Stage • Sales: Very low/slow growth • Profits: Negative or low (high development & promotional costs) • Customers: Innovators (risk-takers) • Competition: Very few • Example: Electric scooters (Ola, Ather) in 2018–19, 5G smartphones in 2020.

2. Growth Stage • Sales: Rapid increase • Profits: Rise sharply • Customers: Early adopters + early majority • Competition: Competitors enter aggressively • Example: Smartphones after 2010, UPI apps (PhonePe, Google Pay) post-2016.

3. Maturity Stage • Sales: Peak, then slow growth or plateau • Profits: Peak, then start declining due to price wars & heavy promotion • Customers: Late majority + laggards • Competition: Maximum, intense rivalry • Example: Detergents (Surf Excel, Rin), two-wheelers (Hero Splendor, Honda Activa), bottled water (Bisleri, Kinley).

4. Decline Stage • Sales: Continuous fall • Profits: Sharp decline or losses • Customers: Only laggards remain • Competition: Many players exit • Example: Feature phones, pagers, landline telephones, DVD players, typewriters.

Marketing Strategy Implications at Each Stage (9–10 MARKS)

Stage	Product	Price	Place (Distribution)	Promotion
Introduction	Basic version, focus on reliability	Skimming or Penetration pricing	Selective distribution	Heavy awareness & trial-building advertising, PR, free samples, demos
Growth	Add features, improve quality, new models	Reduce price slightly, maintain margins	Intensive distribution, expand reach	Build brand preference, competitive advertising, sales promotion
Maturity	Product modification, differentiation, line extensions	Price reductions, discounts, bundling	Mass distribution, fill pipelines	Heavy sales promotion, loyalty programs, reminder advertising
Decline	Phase out weak items, minimal changes	Further cuts or maintain for loyal segment	Selective withdrawal of channels	Minimal promotion or none

Additional Strategies
• Life-cycle extension techniques in Maturity: Market modification, Product modification, Marketing-mix modification.
• Decline options: Harvesting (reduce costs), Divestment (sell off), Niche focus, Relaunch.

Conclusion (2 MARKS)
The PLC concept is a powerful planning tool that enables marketers to anticipate changes in sales, profits and competition, and proactively adjust the marketing mix. Understanding where a product stands in its life cycle helps allocate resources efficiently, extend profitable life, and decide when to launch new products. Companies like Nokia (failed to manage decline of feature phones) and Apple (mastery of introduction & growth of iPhones) prove the strategic importance of PLC management.

Memory Help (Super Easy)
• Stages → I-G-M-D (Intro → Growth → Maturity → Decline)
• Strategy → Awareness → Preference → Loyalty → Harvest
• Classic Examples → Electric cars (Intro), Smartphones (Growth), Detergents (Maturity), Pagers (Decline)

Introduction (2–3 MARKS)
A channel of distribution is the path or route along which goods move from producers to ultimate consumers/users. The choice of channel is a strategic decision because it affects cost, customer satisfaction, reach, control and long-term profitability. No single channel is best for all products — the decision depends on multiple interrelated factors.

Major Factors Influencing Channel Choice (15 MARKS)

Factor	Explanation	Implication on Channel Length	Example
1. Nature of Product	• Perishability • Bulk/Weight • Unit value • Technical complexity • Need for installation/service	Perishable, bulky, high-value, technical → Short/Direct channel Non-perishable, low-value → Long channel	Milk, fruits (Amul direct to retailers) Cement (producer → dealer → retailer) Laptops (company → exclusive showroom)
2. Nature of Market	• Number of buyers • Geographical concentration • Size/frequency of order • Customer buying habits	Few buyers, concentrated, large orders → Direct Many buyers, scattered, small orders → Long channel	Industrial machinery sold directly to factories FMCG like biscuits through multi-level distribution
3. Company Factors	• Financial strength • Desire for control • Marketing experience • Company reputation	Strong finance & desire for control → Own outlets/shorter channel Weak resources → Depend on intermediaries	Bata, Reliance Retail own stores New startup uses distributors
4. Middlemen Factors	• Availability • Cost • Services offered (credit, storage, promotion) • Attitude & cooperation	Good intermediaries available → Longer channel Desired intermediaries committed to competitors → Forced to create own channel	Patanjali initially struggled → built own franchise network
5. Competition & Environmental Factors	• Competitors’ channels • Economic conditions • Legal restrictions • Technology (e-commerce)	Competitors use short channel → May have to follow or differentiate E-commerce boom → Direct-to-consumer (D2C) possible	Boat, Mamaearth sell mainly online (D2C) to bypass traditional channels

Practical Example – AMUL vs LUX SOAP (3 MARKS)
• Amul Milk (perishable, daily need, low unit value) → Producer → Cooperative societies → Retailers → Consumer (Very short channel to ensure freshness).
• Lux Soap (non-perishable, low value, mass market) → HUL → C&F Agent → Stockist → Wholesaler → Retailer → Consumer (Long multi-level channel for wide reach at low cost).

Conclusion (2 MARKS)
The choice of distribution channel is never based on a single factor. Marketers must analyse product characteristics, market realities, company capabilities, intermediary availability and competitive practices to design the most effective, efficient and profitable route to the customer. A wrong channel decision is difficult and costly to reverse — hence it is considered a strategic commitment.

Memory Help (Super Easy)
P-M-C-M-E
• Product nature (perishable → short, FMCG → long)
• Market (few buyers → direct, millions → indirect)
• Company strength & control desire
• Middlemen availability & services
• Environment & competition

Classic Pair: Milk = Short | Biscuit/Soap = Long

Introduction (1 MARK)
Personal selling is face-to-face interaction between seller and buyer with the objective of making a sale. It is the most powerful yet most expensive tool in the promotion mix.

Situations Where Personal Selling is Highly Relevant (6 MARKS)

1. High-value / Technical / Industrial Products Need demonstration, explanation, negotiation. Example: B2B machinery, ERP software, medical equipment.

2. Complex Products Requiring Customisation Example: Insurance policies, mutual funds, luxury cars.

3. New / Innovative Products Requires education & trial generation. Example: Eureka Forbes (Aquaguard) door-to-door in 1980s–90s, Jio SIM launch 2016.

4. Products Needing After-Sales Service / Installation Example: Air-conditioners, solar panels, elevators.

5. Embarrassment / Sensitive Category Consumers hesitate to ask openly. Example: Contraceptives (Nirodh), sanitary napkins (Whisper “Touch the Pickle” campaign used discreet selling).

6. Markets with Low Literacy / Weak Media Reach Rural India, tier-3/4 towns — personal contact is the only way. Example: HUL’s Project Shakti, ITC e-Choupal.

Situations Where Personal Selling is Less Relevant (2 MARKS)
• FMCG convenience goods (soaps, biscuits, chocolates) — advertising + availability drives sales.
• Low unit value + mass market — cost per contact too high.
• Pure e-commerce products (mobile accessories, books) — digital marketing sufficient.

Conclusion (1 MARK)
Personal selling is not equally relevant in all situations. It is indispensable for high-involvement, technical, new or sensitive products, but plays only a supportive role for low-involvement FMCG and digital-first products.

Memory Help
Highly Relevant → T-I-N-S-E-R
Technical | Industrial | New launch | Service needed | Embarrassment | Rural/low-literacy

Less Relevant → F-L-D → FMCG | Low value | Digital-first

Introduction (1 MARK)
Consumer sales promotion consists of short-term incentives offered to end consumers to stimulate immediate purchase or trial.

Major Consumer Promotion Techniques (8 MARKS)

Technique	Description	Example
1. Price-Off	Direct reduction on MRP	“₹20 off on Surf Excel 1kg”
2. Quantity-Off / Extra Volume	More quantity at same/no extra price	“Buy 500g, Get 200g Free” (Durex)
3. Premiums	Free gift with purchase • In-pack • On-pack • Container premium	Maggi — toy inside pack Bournvita — mug with jar
4. Coupons	Certificate giving discount/free item	BigBasket ₹200 off coupon
5. Cash Refund / Rebate	Money returned after proof of purchase	“Send 3 wrappers → Get ₹50 back”
6. Free Samples / Trials	Free product to induce trial	New shampoo sachets in newspapers
7. Contests / Sweepstakes	Chance to win prizes	Lays “Smile Deke Dekho” — win car
8. Loyalty / Frequency Programs	Rewards for repeat purchase	Paytm First, Amazon Prime

Conclusion (1 MARK)
Consumer promotions create immediate pull, encourage trial, increase consumption and build loyalty, but must be used judiciously to avoid brand devaluation.

Memory Help (Super Easy)
P-Q-P-C-R-S-C-L
Price-off | Quantity | Premium | Coupon | Refund | Sample | Contest | Loyalty

Consumer Promotion Tools:
• Price-off • Quantity-off • Premiums • Coupons • Refunds • Samples • Contests/Sweepstakes • Loyalty programs

Example: “Buy 1 Get 1 Free” (quantity-off), “Free mug with Nescafe” (premium), “Rs. 50 cashback on Paytm” (coupon).

Memory Help: P-Q-P-C-R-S-L (Price, Quantity, Premium, Coupon, Refund, Sample, Lucky draw)

Introduction (2 MARKS)
Pricing is the only element in the marketing mix that generates revenue (others create cost). Pricing objectives are the goals that guide how a company sets its prices. These objectives must be consistent with overall corporate and marketing objectives. A firm may pursue one primary objective or a combination at different times or for different products.

Major Pricing Objectives (15–16 MARKS)

Objective	Description	Pricing Strategy	Example
1. Profit Maximisation	Maximise short-term profit	High price as long as demand allows	Patented medicines, luxury brands (Rolex, Louis Vuitton)
2. Target Return on Investment (ROI)	Achieve specific % return on capital	Price set to cover costs + desired ROI	Public utilities, large infrastructure projects
3. Sales / Volume Maximisation	Maximise unit sales (believing higher volume reduces cost)	Low price, aggressive promotion	Surf Excel, Rin, Dettol soap
4. Market Share Leadership	Gain or defend highest market share	Penetration pricing, loss-leader pricing	Jio (2016–18), Xiaomi smartphones
5. Market Penetration	Rapidly gain large share in new/growing market	Very low “penetration” price initially	Patanjali (initial phase), Reliance Jio
6. Market Skimming	Extract maximum revenue from segments willing to pay high price	High introductory price → gradually reduce	Apple iPhones, Sony PlayStation launches, 5-star hotels
7. Survival	Stay in business during crisis/overcapacity	Price to cover variable cost + some fixed cost	Airlines during COVID, textile units in recession
8. Price/Quality Leadership	Project premium/quality image	Consistently high price	Mercedes-Benz, Montblanc pens, Taj Hotels
9. Price Stabilisation	Maintain stable prices to build goodwill	Avoid frequent changes	Amul butter, Parle-G (decades of stable pricing)
10. Social / Welfare Objectives	Make product affordable to weaker sections	Subsidised or very low price	Generic medicines (Jan Aushadhi), Mid-day meal atta

Practical Example – Reliance Jio vs Apple India (3 MARKS)
• Jio (2016–18) → Primary objective: Market Penetration + Market Share Leadership → Offered free voice + dirt-cheap data → captured 400+ million users in record time.
• Apple iPhones → Primary objective: Market Skimming + Quality Leadership → Launches at ₹1 lakh+ → targets premium segment → maintains high margins and luxury image.

Conclusion (2 MARKS)
Pricing objectives provide direction to the entire pricing process. Companies rarely follow only one objective — they often combine them (e.g., penetration initially → profit maximisation later). The choice depends on company goals, product life cycle stage, competition, cost structure and market conditions. Successful firms like Jio (penetration → share → profit) and Apple (skimming → quality image) demonstrate how clearly defined pricing objectives drive long-term success.

Memory Help (Super Easy)
“P-R-S-P-S-S-S-Q-S-S”
Profit | ROI | Sales | Penetration | Skimming | Survival | Stabilisation | Quality leadership | Social welfare

Introduction (2 MARKS)
The consumer buying decision process is a five-stage model that describes how individuals go from recognising a need to post-purchase evaluation. This model (developed by Engel-Kollat-Blackwell and Kotler) is most applicable to high-involvement purchases (expensive, risky, ego-related). Understanding each stage helps marketers influence consumers at the right time with the right tools.

Five Stages of the Consumer Buying Decision Process (15 MARKS)

Stage	Description	Marketing Implications	Example: Buying a Smartphone (₹50,000+)
1. Problem / Need Recognition	Consumer realises a difference between actual and desired state. Triggers: Internal (hunger, thirst) or External (ads, peer influence)	Create need through advertising, social proof, influencer marketing	Old phone hangs → battery drains fast → sees friend’s new iPhone
2. Information Search	Consumer actively seeks information. Sources: • Personal (family, friends) • Commercial (ads, websites) • Public (reviews, ratings) • Experiential (touch & feel)	Be present on Google, YouTube, Amazon reviews, influencer videos, showroom demos	Watches YouTube reviews (Technical Guruji), reads specs on GSMArena, visits Croma store
3. Evaluation of Alternatives	Consumer compares brands on key attributes (beliefs → attitude → intention). Uses compensatory/non-compensatory models, gives weightage to attributes	Highlight USPs, superiority claims, comparative ads, positioning	Compares iPhone 15 vs Samsung S24 vs Pixel 8 on camera, processor, ecosystem, resale value
4. Purchase Decision	Final choice of brand + retailer + timing. Can be influenced by: • Attitudes of others • Unanticipated situational factors (discount, stock-out, EMI offer)	Offer limited-period discounts, easy EMI, exchange bonus, assured buyback	Buys iPhone 15 from Amazon during Great Indian Festival with ₹10,000 exchange + No-cost EMI
5. Post-Purchase Behaviour	Consumer compares performance with expectations • Satisfaction → Repeat + Positive WOM • Cognitive Dissonance → Complaints/Returns/Negative reviews	Excellent after-sales service, warranty, customer care, community building	Loves camera → posts on Instagram → recommends to friends OR battery issue → complains on Twitter → may switch to Samsung next time

Key Points (2 MARKS)
• For low-involvement products (salt, soap) → stages are compressed or skipped.
• Role of digital marketing is maximum in Stage 2 & 3 today (YouTube, reviews, influencers).
• Post-purchase satisfaction is critical for brand loyalty and lifetime value.

Conclusion (1 MARK)
The five-stage model provides a systematic framework for marketers to intervene at each step and move the consumer towards purchase and loyalty. Companies that dominate information search and evaluation stages (Apple, Samsung) usually win the purchase decision.

Memory Help (Super Easy)
P-I-E-P-P → Problem → Information → Evaluation → Purchase → Post-purchase
Marketing Touchpoints: Trigger need → Dominate search → Win comparison → Close sale → Delight after sale

Part A: Difference between Selling and Marketing (8–9 MARKS)

Basis	Selling Concept	Marketing Concept
Focus	Product & Seller’s needs “How to sell what we have made?”	Customer needs & wants “What does the customer want & how to satisfy profitably?”
Starting Point	Factory → Existing products	Target market → Customer needs
Orientation	Inside-out (Product → Customer)	Outside-in (Customer → Product)
Primary Tools	Personal selling, aggressive promotion	Integrated marketing mix (4Ps)
Objective	Maximise sales volume (short-term)	Customer satisfaction → long-term profitable relationships
Time Horizon	Short-term	Long-term
After-sales Service	Limited importance	Critical for repeat business & loyalty
Profit Through	High sales volume	Customer loyalty & lifetime value
Example	Pushy insurance agent forcing policy	Amul, Apple, Zomato focusing on customer delight

Part B: Evolution of Marketing Management Philosophies (10–11 MARKS)

Philosophy	Core Belief	Key Focus	Example
1. Production Concept	Consumers prefer widely available & inexpensive products	Efficient production & wide distribution	Henry Ford’s Model T (any colour as long as it’s black)
2. Product Concept	Consumers favour products offering best quality, performance, features	Continuous product improvement	Companies obsessed with engineering excellence (some mobile brands ignoring price)
3. Selling Concept	Consumers will not buy enough unless aggressive selling & promotion is done	Hard selling, heavy promotion	Unsought goods: insurance, encyclopaedias, timeshare
4. Marketing Concept	Achieve organisational goals by determining needs of target market & delivering satisfaction better than competitors	Customer satisfaction + profitability	Apple, Amazon, Zomato, Swiggy
5. Societal Marketing Concept	Marketing Concept + Society’s long-term well-being (3Ps: Profit, People, Planet)	Ethical, eco-friendly, socially responsible marketing	Patanjali (ayurvedic), The Body Shop (cruelty-free), Tata Tea (Jaago Re campaigns)

Conclusion (2 MARKS)
Selling is a narrow, short-term, product-oriented activity whereas Marketing is a broad, long-term, customer-oriented philosophy. Modern successful organisations have moved from Production → Product → Selling → Marketing → Societal Marketing orientation. Companies that truly follow the Marketing & Societal Marketing concepts (Apple, Amul, Tata, Patagonia) achieve sustainable competitive advantage and customer loyalty.

Memory Help (Super Easy)
• Selling vs Marketing → “Factory → Customer” vs “Customer → Factory”
• 5 Philosophies → Pro-Pro-Sell-Mar-Soc
Production → Product → Selling → Marketing → Societal

Introduction (2 MARKS)
The marketing environment consists of all external actors and forces that affect a company’s ability to develop and maintain successful transactions and relationships with its target customers. It is divided into two parts: Micro (task) environment and Macro (broad) environment.

Components of Marketing Environment (8 MARKS)

Micro Environment (Controllable to some extent)	Macro Environment (Uncontrollable)
1. Company (top management, departments) 2. Suppliers 3. Marketing Intermediaries (distributors, retailers) 4. Customers (consumer, business, govt, international) 5. Competitors 6. Publics (financial, media, citizen, local, general)	1. Demographic (age, income, family size, urbanisation) 2. Economic (GDP, inflation, interest rates, purchasing power) 3. Natural (climate, resources, sustainability) 4. Technological (R&D, automation, digital revolution) 5. Political-Legal (laws, regulations, govt policies) 6. Socio-Cultural (values, beliefs, lifestyle, sub-cultures)

Relevance of Marketing Environment – Why it Matters (9 MARKS)

1. Source of Opportunities & Threats** Example: Rise of health consciousness (macro socio-cultural) → Opportunity for Patanjali, Sugar-free products; Threat for traditional aerated drinks.

2. Shapes Product Decisions** Example: Stringent emission norms (political-legal) forced automobile companies to launch BS-VI vehicles and EVs.

3. Influences Pricing** Example: High inflation + low purchasing power (economic) → Smaller packs (₹5 shampoo sachets) by HUL, ITC.

4. Determines Distribution Strategy** Example: Growth of organised retail + e-commerce (technological + economic) → Shift from traditional kirana to modern trade & D2C brands (Mamaearth, Boat).

5. Guides Promotion & Communication** Example: Digital penetration + low literacy in rural areas → HUL uses Wall paintings + WhatsApp + radio instead of only TV ads.

6. Legal & Regulatory Compliance** Example: ASCI guidelines + FSSAI rules forced Maggi to withdraw and relaunch with new claims.

7. Requires Continuous Monitoring & Adaptation** Example: COVID-19 (macro natural + economic) → Entire industry shifted to online selling, contactless delivery, immunity-boosting products.

Conclusion (2 MARKS)
The marketing environment is dynamic and largely uncontrollable. Successful companies (like Reliance Jio, Patanjali, Zomato) constantly scan, analyse and adapt to environmental changes rather than fighting them. Ignoring the environment leads to failure (Nokia missed smartphone wave, Kodak missed digital photography). Thus, environmental analysis is the starting point of all strategic marketing planning.

Memory Help (Super Easy)
• Micro → 6Cs: Company, Customers, Competitors, Channel partners, Capital (financial publics), Community
• Macro → DENTPC: Demographic, Economic, Natural, Technological, Political-legal, Cultural