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  • UGC NET MBA Unit-7 Consumer Behaviour, Branding, SCM, CRM, Retail & International Marketing PYQ

    1. Which of the following is the consumer behaviour model that conceives a person (consumer) as a system with outputs (behaviour) in response to inputs?

    A. Thorndike’s Theory
    B. Engel–Kollat–Blackwell Theory
    C. Buying Theory by Drucker
    D. Comprehensive Theory of Consumer Behaviour

    Correct Answer: B

    2. Which set of variables define buyer behaviour according to Howard–Sheth Theory?

    A. Physical input, external, exogenous, output
    B. Personality, perception, learning, brand variables
    C. Social input, attitude, selection behaviour, brand
    D. Stimulus input, internal variables, exogenous variables, response output

    Correct Answer: D

    3. The tendency of consumers to interpret information in a way that fits their preconceptions is called:

    A. Selective Attention
    B. Selective Distortion
    C. Selective Retention
    D. Subliminal Perception

    Correct Answer: B

    4. Attributes that consumers strongly associate with a brand and believe they cannot find with competitors refer to:

    A. Competitive points-of-parity
    B. Relational points-of-parity
    C. Correlational points-of-parity
    D. Points-of-difference

    Correct Answer: D

    5. Which Brand Equity dimension measures perceptions of quality and loyalty?

    A. Differentiation
    B. Knowledge
    C. Esteem
    D. Relevance

    Correct Answer: C

    6. Viral marketing refers to:

    A. Digital SMS messaging
    B. Online word-of-mouth encouraging consumers to share information
    C. Customer database promotion
    D. Website display banner advertising

    Correct Answer: B

    7. Which statements related to online marketing are correct?

    I. Online communities exist only in one format.
    II. In paid search, marketers bid for search terms in a continuous auction.
    III. Only some consumers want deep engagement with brands.

    A. I & II
    B. II & III
    C. I & III
    D. All statements are correct

    Correct Answer: B

    8. Which of the following is a benchmarking tool to measure logistics supply chain performance across nations?

    A. Logistics Preparedness Index
    B. Supply Chain Performance Index
    C. Logistics Performance Index
    D. Supply Chain Preparedness Index

    Correct Answer: C

    9. Workplace where intrapreneurial teams work informally to develop new products is called:

    A. Garage teams
    B. Venture teams
    C. Skunk Works
    D. Communities of Practice

    Correct Answer: C

    10. Which service quality dimension describes employees’ ability to convey trust and confidence?

    A. Empathy
    B. Responsiveness
    C. Reliability
    D. Assurance

    Correct Answer: D

    11. Which method tests new products by initially offering them free and later reoffering at reduced price?

    A. Simulated Test Marketing
    B. Controlled Test Marketing
    C. Test Markets
    D. Sales-Wave Research

    Correct Answer: D

    12. CRM focuses on:

    A. Controlling warehouse capacity
    B. Carefully managing information about individual customers to increase loyalty
    C. Reducing logistics cost
    D. Optimizing distribution channels

    Correct Answer: B

    13. Which is NOT true in linear shipping?

    (a) Used for high-value cargo
    (b) Offers slower shipping services
    (c) Operates on fixed schedule
    (d) Contract document is called Charter Party

    A. (a) and (c)
    B. (a), (b) and (d)
    C. (d) only
    D. (b) and (d)

    Correct Answer: B

    14. Facebook was founded in:

    A. 2004 – Peter Corbett
    B. 2005 – Peter Corbett
    C. 2004 – Mark Zuckerberg
    D. 2005 – Mark Zuckerberg

    Correct Answer: C

    15. Online promotion that encourages consumers to spread messages digitally is:

    A. Microsite marketing
    B. Viral marketing
    C. Interstitial advertising
    D. Contextual placement

    Correct Answer: B

  • UGC NET MBA Unit-7 MCQs

    Consumer Behaviour, Branding, SCM, CRM, Services, Retail & Emerging Marketing

    🔹 SECTION A – CONSUMER BEHAVIOUR: THEORIES & MODELS

    1. Consumer behaviour studies:
    A. How consumers decide to buy and use products
    B. Production efficiency
    C. Pricing strategies
    D. Government policy
    Answer: A
    Explanation: Consumer behaviour explores the decision-making process behind need recognition, purchase, and consumption.*

    2. The Engel–Kollat–Blackwell (EKB) model includes:
    A. Problem recognition → Information search → Evaluation → Purchase → Post-purchase
    B. Awareness → Interest → Desire → Action
    C. Production → Marketing → Sales → Feedback
    D. None
    Answer: A

    3. According to Freud’s Psychoanalytic Theory, consumer choices are:
    A. Based on rational logic
    B. Driven by unconscious motives
    C. Influenced by laws
    D. Fully predictable
    Answer: B

    4. Maslow’s hierarchy of needs suggests motivation begins with:
    A. Self-actualization
    B. Safety
    C. Physiological needs
    D. Esteem
    Answer: C

    5. Which theory explains behaviour as learned through experience?
    A. Learning theory
    B. Economic theory
    C. Psychoanalytic theory
    D. Social class theory
    Answer: A

    6. The “Howard–Sheth” model explains:
    A. Industrial buying process
    B. Learning-based consumer decision model
    C. Post-purchase dissonance
    D. None
    Answer: B

    7. The “Nicosia Model” emphasizes:
    A. Firm–consumer communication
    B. Product design
    C. Market segmentation
    D. Price elasticity
    Answer: A

    8. The most comprehensive model of consumer decision-making is:
    A. EKB model
    B. Howard–Sheth model
    C. Pavlov model
    D. Freud model
    Answer: B

    9. “Cognitive dissonance” occurs when:
    A. Consumer experiences conflict after purchase
    B. Product performs well
    C. Consumer is loyal
    D. None
    Answer: A

    10. Derived demand applies to:
    A. Industrial buyers
    B. Final consumers
    C. Retailers
    D. None
    Answer: A
    Explanation: Industrial demand is derived from consumer demand for finished goods.*

    🔹 SECTION B – FACTORS & TYPES OF BUYING BEHAVIOUR

    11. Which is not a factor affecting consumer behaviour?
    A. Cultural
    B. Social
    C. Technological
    D. Astrological
    Answer: D

    12. Reference groups are part of:
    A. Social factors
    B. Cultural factors
    C. Psychological factors
    D. None
    Answer: A

    13. Industrial buying involves:
    A. Multiple participants
    B. Emotional motives
    C. Simple decisions
    D. None
    Answer: A

    14. The buygrid framework was given by:
    A. Webster and Wind
    B. Porter
    C. Kotler
    D. Sheth
    Answer: A

    15. Straight rebuy refers to:
    A. Routine purchase without modification
    B. New task buying
    C. Modified buying
    D. Emergency buying
    Answer: A

    16. Modified rebuy means:
    A. Purchase with minor changes
    B. Completely new product
    C. Buying same quantity
    D. Automatic reorder
    Answer: A

    17. The most complex buying situation is:
    A. New task buying
    B. Straight rebuy
    C. Routine response
    D. Impulse buying
    Answer: A

    18. Consumer personality traits affect:
    A. Perception and buying decisions
    B. Only price
    C. Supply chain
    D. None
    Answer: A

    19. Family life cycle influences:
    A. Purchase pattern
    B. Brand image
    C. Industrial logistics
    D. None
    Answer: A

    20. Learning in consumer behaviour refers to:
    A. Permanent change in behaviour from experience
    B. Advertising
    C. Instinctive acts
    D. None
    Answer: A

    🔹 SECTION C – BRAND MANAGEMENT

    21. A brand is defined as per AMA as:
    A. A name, term, symbol or design identifying a seller
    B. Company trademark only
    C. Packaging design
    D. Logo design
    Answer: A

    22. Brand equity represents:
    A. The value added by brand to product
    B. Product cost
    C. Company revenue
    D. Advertising expense
    Answer: A

    23. Aaker’s model includes all except:
    A. Brand awareness
    B. Brand associations
    C. Production process
    D. Brand loyalty
    Answer: C

    24. Keller’s CBBE model focuses on:
    A. Building strong brand resonance
    B. Reducing cost
    C. Product line expansion
    D. None
    Answer: A

    25. Brand resonance in Keller’s model represents:
    A. Deep customer connection
    B. Initial awareness
    C. Advertising reach
    D. Packaging
    Answer: A

    26. Brand Asset Valuator (BAV) includes:
    A. Differentiation, relevance, esteem, knowledge
    B. Profit, cost, efficiency, loyalty
    C. Price, quality, durability, trust
    D. None
    Answer: A

    27. Brand extension refers to:
    A. Using existing brand name for new products
    B. Repackaging old products
    C. Price discounting
    D. None
    Answer: A

    28. Co-branding involves:
    A. Two brands joining for joint promotion
    B. Copying brands
    C. Multiple stores
    D. None
    Answer: A

    29. Brand loyalty is highest when:
    A. Customer refuses to switch despite alternatives
    B. Customer buys only on sale
    C. Product is new
    D. None
    Answer: A

    30. Brand equity provides:
    A. Ability to charge price premium
    B. Lower costs only
    C. No benefit
    D. None
    Answer: A

    🔹 SECTION D – SUPPLY CHAIN & LOGISTICS

    31. SCM integrates:
    A. Procurement to customer delivery
    B. Only transportation
    C. Only warehousing
    D. None
    Answer: A

    32. The main objective of SCM is:
    A. Delivering value at lowest total cost
    B. Reducing product quality
    C. Increasing stockouts
    D. None
    Answer: A

    33. Logistics focuses on:
    A. Physical movement and storage of goods
    B. Product pricing
    C. Advertising
    D. None
    Answer: A

    34. SCM driver not included below is:
    A. Facilities
    B. Inventory
    C. Transportation
    D. Advertising
    Answer: D

    35. Inbound logistics refers to:
    A. Movement of materials to the manufacturer
    B. Distribution to customers
    C. Reverse flow
    D. None
    Answer: A

    36. Outbound logistics involves:
    A. Delivering finished goods to market
    B. Importing components
    C. Storing raw material
    D. None
    Answer: A

    37. Push system is based on:
    A. Forecasting demand
    B. Customer order first
    C. On-demand production
    D. None
    Answer: A

    38. Pull system starts production:
    A. After customer demand arises
    B. In advance
    C. Periodically
    D. None
    Answer: A

    39. The main benefit of SCM integration is:
    A. Reduced lead time and higher satisfaction
    B. Increased conflict
    C. Higher inventory
    D. None
    Answer: A

    40. Sales force management involves:
    A. Recruiting, training, motivating, compensating
    B. Advertising
    C. Accounting
    D. None
    Answer: A

    🔹 SECTION E – SERVICE MARKETING

    41. Services are different from goods because they are:
    A. Intangible, inseparable, perishable, variable
    B. Tangible
    C. Durable
    D. None
    Answer: A

    42. The 7 Ps of service marketing include:
    A. Product, Price, Place, Promotion, People, Process, Physical Evidence
    B. Product, Price, Process only
    C. 4Ps only
    D. None
    Answer: A

    43. SERVQUAL model was developed by:
    A. Parasuraman, Zeithaml, Berry
    B. Porter
    C. Aaker
    D. Kotler
    Answer: A

    44. “Reliability” in SERVQUAL refers to:
    A. Consistency in performance
    B. Speed
    C. Tangibles
    D. None
    Answer: A

    45. Service perishability means:
    A. Can’t be stored for future
    B. Can be reused
    C. Easily repaired
    D. None
    Answer: A

    46. Service recovery means:
    A. Correcting service failure effectively
    B. Increasing price
    C. Increasing process time
    D. None
    Answer: A

    47. People element in service marketing refers to:
    A. Employees and customers involved in service delivery
    B. Advertising team only
    C. Government officials
    D. None
    Answer: A

    48. Tangibles in services refer to:
    A. Physical facilities, appearance
    B. Service process
    C. Brand logo
    D. None
    Answer: A

    49. The key challenge in service marketing is:
    A. Managing variability and quality consistency
    B. Tangible product issues
    C. Advertising frequency
    D. None
    Answer: A

    50. Service firms can differentiate through:
    A. People, process, physical evidence
    B. Price only
    C. Advertising only
    D. None
    Answer: A

    SECTION F – CUSTOMER RELATIONSHIP MARKETING (CRM)

    51. CRM stands for:
    A. Customer Relationship Management
    B. Consumer Revenue Management
    C. Client Retention Marketing
    D. None
    Answer: A
    Explanation: CRM focuses on creating and maintaining long-term profitable relationships with customers.*

    52. The main objective of CRM is to:
    A. Retain customers and increase loyalty
    B. Maximize short-term sales
    C. Reduce prices
    D. Limit communication
    Answer: A

    53. Operational CRM deals with:
    A. Automation of sales, marketing, and service operations
    B. Customer data analytics
    C. Strategic alliances
    D. None
    Answer: A

    54. Analytical CRM focuses on:
    A. Data analysis and customer insights
    B. Call center operations
    C. Recruitment
    D. None
    Answer: A

    55. Collaborative CRM means:
    A. Integrating all communication channels
    B. Social media marketing
    C. Outsourcing marketing
    D. None
    Answer: A

    56. The major benefit of CRM is:
    A. Enhanced customer satisfaction and retention
    B. Increased cost
    C. Reduced profit
    D. None
    Answer: A

    57. Customer Lifetime Value (CLV) represents:
    A. Net profit from a customer over entire relationship period
    B. One-time transaction
    C. Purchase per month
    D. None
    Answer: A

    58. Formula for CLV includes:
    A. Average purchase × Frequency × Lifespan − Acquisition cost
    B. Sales ÷ Costs
    C. Total profit × Tax rate
    D. None
    Answer: A

    59. Loyalty programs are part of:
    A. CRM retention strategy
    B. Pricing strategy
    C. Promotion
    D. None
    Answer: A

    60. The main tool for CRM implementation is:
    A. CRM software and database system
    B. Accounting books
    C. HR portal
    D. None
    Answer: A

    🔹 SECTION G – RETAIL MARKETING

    61. Retailing means:
    A. Selling goods/services directly to final consumers
    B. Selling raw materials
    C. Wholesale trade
    D. None
    Answer: A

    62. The key function of retailing is:
    A. Breaking bulk and providing convenience
    B. Producing goods
    C. Advertising only
    D. None
    Answer: A

    63. A department store offers:
    A. Several product categories under one roof
    B. Only food items
    C. Only one brand
    D. None
    Answer: A

    64. A supermarket is characterized by:
    A. Self-service and low margins
    B. Luxury goods
    C. High price
    D. None
    Answer: A

    65. Specialty stores focus on:
    A. Narrow product range but deep assortment
    B. All product categories
    C. Cheap items
    D. None
    Answer: A

    66. Discount stores compete primarily on:
    A. Price
    B. Product innovation
    C. Quality
    D. Service differentiation
    Answer: A

    67. Convenience stores target:
    A. Routine, emergency, or impulse items
    B. Industrial products
    C. Luxury goods
    D. None
    Answer: A

    68. E-tailing refers to:
    A. Selling via internet or online platform
    B. Door-to-door selling
    C. Wholesale
    D. None
    Answer: A

    69. Example of a contractual retail format:
    A. Franchise (e.g., McDonald’s)
    B. Online portal
    C. Local kirana store
    D. None
    Answer: A

    70. Recent trend in Indian retail:
    A. Omni-channel integration (online + offline)
    B. Cash-only business
    C. Elimination of technology
    D. None
    Answer: A

    🔹 SECTION H – EMERGING TRENDS: E-MARKETING, DIGITAL & GREEN MARKETING

    71. e-Marketing means:
    A. Using internet and digital tools for marketing
    B. Direct door-to-door selling
    C. Telemarketing only
    D. None
    Answer: A

    72. Direct marketing aims at:
    A. Generating immediate consumer response
    B. Brand awareness only
    C. Price reduction
    D. None
    Answer: A

    73. Digital marketing includes:
    A. SEO, SEM, social media, content marketing
    B. Only online ads
    C. Offline billboards
    D. None
    Answer: A

    74. Advantage of digital marketing:
    A. Measurable results and precise targeting
    B. Random reach
    C. High fixed cost
    D. None
    Answer: A

    75. “SEO” in digital marketing stands for:
    A. Search Engine Optimization
    B. Sales Effectiveness Operations
    C. System Efficiency Optimization
    D. None
    Answer: A

    76. “SEM” stands for:
    A. Search Engine Marketing
    B. Social Engagement Metrics
    C. Sales and Earnings Management
    D. None
    Answer: A

    77. Green marketing refers to:
    A. Promoting environmentally friendly products
    B. Discount selling
    C. Digital-only advertising
    D. None
    Answer: A

    78. Example of green marketing practice:
    A. Using biodegradable packaging
    B. Plastic overuse
    C. Excess energy usage
    D. None
    Answer: A

    79. The main objective of green marketing is:
    A. Environmental sustainability & ethical branding
    B. High profit only
    C. Short-term promotion
    D. None
    Answer: A

    80. The major challenge in e-marketing is:
    A. Data privacy and security
    B. Warehouse space
    C. Transportation
    D. None
    Answer: A

    🔹 SECTION I – INTERNATIONAL MARKETING

    81. International marketing involves:
    A. Marketing goods/services beyond domestic borders
    B. Domestic sales
    C. Internal management
    D. None
    Answer: A

    82. Major reason for international expansion:
    A. Market diversification and growth
    B. Reducing customers
    C. Limiting brand scope
    D. None
    Answer: A

    83. Exporting is suitable for:
    A. Firms beginning international operations
    B. Large MNCs only
    C. NGOs
    D. None
    Answer: A

    84. Licensing allows:
    A. Foreign company to use firm’s technology/brand for fee
    B. Joint ownership
    C. 100% subsidiary
    D. None
    Answer: A

    85. Franchising involves:
    A. Replication of brand operations abroad under contract
    B. Simple exporting
    C. Buying raw material
    D. None
    Answer: A

    86. Joint venture means:
    A. Partnership between domestic and foreign firm
    B. 100% ownership
    C. Technology transfer
    D. None
    Answer: A

    87. Wholly owned subsidiary implies:
    A. Full ownership by parent firm abroad
    B. Joint partnership
    C. Outsourcing
    D. None
    Answer: A

    88. Standardization in global marketing means:
    A. Using same marketing strategy across countries
    B. Customizing for each market
    C. Changing product for local tastes
    D. None
    Answer: A

    89. Adaptation strategy means:
    A. Modifying marketing mix to local conditions
    B. Using identical global products
    C. Reducing prices globally
    D. None
    Answer: A

    90. “Glocalization” refers to:
    A. Think global, act local
    B. Domestic only
    C. Product standardization only
    D. None
    Answer: A

    🔹 SECTION J – INTERNATIONAL MARKETING MIX & ENVIRONMENT

    91. International product strategy includes:
    A. Standardization vs. adaptation
    B. Branding only
    C. Packaging only
    D. None
    Answer: A

    92. International pricing must consider:
    A. Exchange rates, tariffs, local costs
    B. Only domestic taxes
    C. Production cost
    D. None
    Answer: A

    93. Place strategy in international marketing involves:
    A. Choosing distribution channels abroad
    B. Domestic retailing
    C. Online ads
    D. None
    Answer: A

    94. International promotion faces challenges of:
    A. Cultural and language differences
    B. Technology gap
    C. Cost reduction
    D. None
    Answer: A

    95. A global brand is one that:
    A. Has consistent identity and presence worldwide
    B. Sells only locally
    C. Changes name by region
    D. None
    Answer: A

    96. Example of global standardization:
    A. Coca-Cola’s uniform brand image worldwide
    B. Local product name variation
    C. Domestic sales
    D. None
    Answer: A

    97. Political risk in international business refers to:
    A. Instability in host country affecting operations
    B. Advertising issues
    C. Product design
    D. None
    Answer: A

    98. Currency fluctuation affects:
    A. Export pricing and profitability
    B. HR policies
    C. Customer service
    D. None
    Answer: A

    99. Cultural sensitivity in global marketing requires:
    A. Understanding symbols, colors, and language of host country
    B. Using same ad everywhere
    C. Ignoring local customs
    D. None
    Answer: A

    100. The ultimate aim of international marketing is:
    A. Global brand presence with local acceptance
    B. Profit only
    C. Short-term expansion
    D. None
    Answer: A

     

  • UGC NET MBA Unit-7

    Consumer Behaviour, Branding, SCM, CRM, Services, Retail & Emerging Marketing

    1. CONSUMER AND INDUSTRIAL BUYING BEHAVIOUR

    🔸 Meaning

    Consumer behaviour is the study of how individuals or groups select, buy, use, and dispose of goods, services, experiences, or ideas to satisfy their needs and wants.

    It combines psychology, sociology, economics, and marketing to understand why people buy.

    🔸 Characteristics

    1. Dynamic process – changes with trends and technology

    2. Involves emotional and rational factors

    3. Influenced by cultural and social context

    4. Varies by product type and involvement

    🔸 Consumer Decision Process (EKB Model)

    Five Stages:

    1. Problem recognition – awareness of need.

    2. Information search – internal (memory) & external (advertising, reviews).

    3. Evaluation of alternatives – comparing products based on attributes.

    4. Purchase decision – choosing a specific brand/product.

    5. Post-purchase behaviour – satisfaction or cognitive dissonance.

    🔸 Theories of Consumer Behaviour

    Theory / Model Proponent Key Idea
    Economic Theory Classical economists Consumer aims to maximize utility with limited income.
    Psychoanalytic Theory Sigmund Freud

    Behaviour driven by subconscious motives (Id, Ego, Superego).
    Learning Theory

    Ivan Pavlov (classical conditioning), Skinner (operant)

    		 Behaviour learned through stimulus–response–reinforcement.
    Howard–Sheth Model John Howard & Jagdish Sheth

    Explains buying as learning over time, involving input, process, and output variables.
    Nicosia Model Francesco Nicosia

    Links marketing communication with consumer attitudes and purchase.
    Engel–Kollat–Blackwell (EKB) Model Engel, Kollat, Blackwell

    Five-step process emphasizing feedback and learning.
    Maslow’s Motivation Theory Abraham Maslow

    Needs arranged hierarchically: physiological → safety → social → esteem → self-actualization.

    🔸 Factors Influencing Consumer Behaviour

    A. Cultural: Culture, subculture, social class
    B. Social: Reference groups, family, role and status
    C. Personal: Age, lifestyle, occupation, economic status
    D. Psychological: Motivation, perception, learning, beliefs, attitudes

    🔸 Industrial (Organizational) Buying Behaviour

    Industrial buying is complex, formal, and multi-personal.
    Buyers purchase raw materials, equipment, or components for further production or resale.

    Participants in Buying Center (Buygrid Framework):

    1. Initiators – recognize need

    2. Users – actually use the product

    3. Influencers – provide specs

    4. Deciders – approve supplier

    5. Buyers – place the order

    6. Gatekeepers – control information flow

    Types of Buying Situations:

    • New Task – first-time purchase

    • Modified Rebuy – some changes

    • Straight Rebuy – routine re-order

    Industrial Buyer Motivations:

    • Economic factors (cost, efficiency, service)

    • Relationship quality (trust, reliability)

    🟩 2. BRAND MANAGEMENT

    🔸 Definition

    A brand is a distinct identity (name, symbol, logo, design, or combination) that identifies a product and differentiates it from competitors.
    (According to the AMA: “A name, term, design, symbol, or any feature that identifies one seller’s good or service.”)

    🔸 Roles of Brands

    • Identification: Distinguish products

    • Differentiation: Build positioning

    • Trust & Loyalty: Create repeat purchases

    • Emotional Appeal: Build relationships

    • Financial Asset: Adds monetary value (brand equity)

    🔸 Brand Equity

    The value added by the brand to the product.

    Key Dimensions:

    1. Brand Awareness – recognition & recall

    2. Brand Associations – mental connections

    3. Perceived Quality – customer’s perception of excellence

    4. Brand Loyalty – repeat buying

    5. Other Assets – patents, trademarks

    🔸 Models of Brand Equity

    Model Proponent Key Elements
    Aaker’s Model David A. Aaker Awareness, associations, loyalty, perceived quality.
    Keller’s CBBE Pyramid Kevin Lane Keller

    4 stages – Identity, Meaning, Response, Relationship (Salience → Performance → Judgments/Feelings → Resonance).
    Brand Asset Valuator (BAV) Young & Rubicam

    Differentiation, Relevance, Esteem, Knowledge.

    🔸 Branding Strategies

    1. Individual Brand Name – Tide, Ariel, Pampers (P&G)

    2. Family / Umbrella Brand – Sony, Samsung

    3. Co-Branding – Intel Inside + HP

    4. Brand Extension – Dabur Honey → Dabur Juice

    5. Private Label – Big Bazaar’s “Fresh & Pure”

    🔸 Brand Loyalty Types

    • Cognitive Loyalty: rational preference

    • Affective Loyalty: emotional liking

    • Conative Loyalty: commitment to buy again

    🔸 Brand Extension vs. Line Extension

    • Brand Extension: new category under same name (Amul Ice-cream → Amul Butter)

    • Line Extension: same category, new variant (Pepsi → Pepsi Max)

    🔸 Brand Positioning Statement

    Format:

    “To [target market], [brand] is the [frame of reference] that [point of difference] because [reason to believe].”

    🟩 3. LOGISTICS AND SUPPLY CHAIN MANAGEMENT (SCM)

    🔸 Concept

    SCM is the integration of procurement, production, inventory, transportation, and distribution to deliver customer value efficiently.

    🔸 Components

    1. Inbound Logistics – raw material sourcing

    2. Operations – manufacturing

    3. Outbound Logistics – warehousing, transport, distribution

    🔸 SCM Drivers

    1. Facilities – location and capacity

    2. Inventory – stock levels

    3. Transportation – speed and cost trade-off

    4. Information – coordination, tracking

    5. Sourcing – vendor selection, contracts

    6. Pricing – impacts demand pattern

    🔸 Value Creation in SCM

    • Minimizes total cost

    • Enhances responsiveness

    • Reduces lead time

    • Improves customer satisfaction

    🔸 Supply Chain Design Decisions

    • Centralized vs. decentralized network

    • Outsourcing vs. in-house logistics

    • Push vs. Pull systems

    • Global sourcing and e-SCM (use of IT and automation)

    🔸 Sales Force & Personal Selling

    • Personal selling: face-to-face persuasion and relationship-building.

    • Sales Force Management: recruitment, training, motivation, compensation, performance evaluation.

    🟩 4. SERVICE MARKETING

    🔸 Characteristics of Services (IHIP Model):

    1. Intangibility – can’t be touched or stored

    2. Heterogeneity (Variability) – quality varies

    3. Inseparability – produced and consumed simultaneously

    4. Perishability – can’t be inventoried

    🔸 7 Ps of Service Marketing

    Product, Price, Place, Promotion, People, Process, Physical Evidence.

    🔸 Service Quality – SERVQUAL Model (Parasuraman, Zeithaml, Berry)

    Five Dimensions:

    1. Reliability – performing promised service dependably

    2. Responsiveness – prompt help to customers

    3. Assurance – trust and courtesy

    4. Empathy – caring and attention

    5. Tangibles – physical facilities and appearance

    🔸 Service Recovery

    Steps to handle service failure and regain trust:

    • Apologize

    • Offer compensation

    • Empower employees

    🔸 Service Brand Management

    Focus on consistent experience, trust, emotional appeal (e.g., Marriott, Indigo).

    🔸 Service Firm Strategies

    • Manage demand and capacity (pricing, reservations)

    • Differentiation through experience

    • Training and empowerment of staff

    • Customer relationship programs

    🟩 5. CUSTOMER RELATIONSHIP MARKETING (CRM)

    🔸 Concept

    CRM is an approach to identify, attract, retain, and enhance customer relationships for long-term profitability.

    🔸 CRM Types

    1. Operational CRM: automates sales, service, and marketing.

    2. Analytical CRM: data-driven analysis for insights.

    3. Collaborative CRM: integrates communication across channels.

    🔸 CRM Process

    1. Identify potential customers

    2. Collect and store data (using CRM software)

    3. Analyze and segment customers

    4. Customize communication

    5. Build loyalty (reward programs, follow-ups)

    🔸 Customer Lifetime Value (CLV):

    CLV=(Averagepurchasevalue×Purchasefrequency×Customerlifespan)−Acquisitioncost

    Indicates the total profit a company can expect from a customer.

    🔸 Benefits

    • Enhanced retention and satisfaction

    • Reduced marketing costs

    • Better forecasting

    • Personalization

    🟩 6. RETAIL MARKETING

    🔸 Definition

    Retailing = Activities involved in selling goods/services directly to final consumers for personal use.

    🔸 Functions

    • Breaking bulk

    • Providing convenience

    • Information and after-sale service

    • Creating experience

    🔸 Types of Retail Formats

    Format Example Key Feature
    Department Store Shoppers Stop

    Several product categories
    Supermarket Big Bazaar

    Self-service, low margins
    Convenience Store 24×7, In&Out

    Small size, daily needs
    Discount Store D-Mart Low price, high turnover
    Specialty Store Titan, Tanishq

    Focus on single category
    E-tailing

    Amazon, Flipkart

    		 Online convenience
    Malls / Hypermarkets Reliance Smart One-stop destination

    🔸 Recent Trends in Indian Retail

    • Online–Offline integration (Omnichannel)

    • Mobile-based shopping apps

    • AI-driven personalization

    • Private labels growth

    • Experiential retailing

    • Sustainable retail (green stores)

    🟩 7. EMERGING TRENDS IN MARKETING

    🔸 e-Marketing

    Use of digital networks to promote products and services (email, web, apps).
    Tools: SEO, PPC, affiliate marketing, blogs.

    🔸 Direct Marketing

    Communicating directly with target consumers to obtain an immediate response.
    Tools: Telemarketing, catalogs, SMS/email campaigns, direct mail.

    🔸 Digital Marketing

    Encompasses all online channels:

    • Social media (Instagram, YouTube)

    • Content marketing

    • Influencer marketing

    • Video and mobile advertising

    • Analytics & AI personalization

    Advantages: Targeted reach, cost-effective, measurable results.

    🔸 Green Marketing

    Marketing eco-friendly and sustainable products.

    Examples:

    • Paperless billing, electric vehicles, organic products.
      Benefits: Improves brand image and meets ethical expectations.

    🟩 8. INTERNATIONAL MARKETING

    🔸 Concept

    Application of marketing principles in more than one country.
    Objective: exploit global opportunities and manage cross-border challenges.

    🔸 International Market Entry Modes

    Mode Ownership Risk & Control Example
    Exporting 0% Low risk, low control Selling abroad directly
    Licensing <100% Medium risk

    Pepsi → local bottlers
    Franchising Shared Medium McDonald’s
    Joint Venture 50% Medium–High

    Maruti–Suzuki

    Wholly Owned Subsidiary

    		 100% High Honda India

    🔸 International Marketing Mix Adjustments

    1. Product: Standardize or adapt to local tastes

    2. Price: Consider currency exchange, tariffs

    3. Place: Distribution networks and local partnerships

    4. Promotion: Language, culture, media differences

    🔸 Challenges in Global Marketing

    • Political instability

    • Cultural barriers (language, symbols)

    • Currency fluctuations

    • Legal regulations

    • Ethical and environmental issues