4) Differentiate between the following (a) Consumer goods and Industrial goods (b) Selective and Intensive Distribution (c) Advertising and Publicity (d) Selling and Marketing

 

TUTOR MARKED ASSIGNMENT 

COURSE CODE : MCO-06 

COURSE TITLE : MARKETING MANAGEMENT 

ASSIGNMENT CODE : MCO-06/TMA/2022-2023 

COVERAGE : ALL BLOCKS

4) Differentiate between the following 

(a) Consumer goods and Industrial goods 

(b) Selective and Intensive Distribution

(c) Advertising and Publicity

(d) Selling and Marketing

Answer

(a) Consumer goods and Industrial goods:

1. Market: Consumer goods are sold to individual customers for personal use, whereas industrial goods are sold to businesses and organizations for use in production or operations.
2. Demand: Consumer goods are typically purchased based on individual preferences and desires, whereas industrial goods are purchased based on business needs and requirements.
3. Buying process: The buying process for consumer goods is usually shorter and less complex than the buying process for industrial goods.
4. Marketing strategy: Consumer goods are marketed through mass media and advertising, while industrial goods are marketed through trade shows, trade publications, and personal selling.
5. Distribution channels: Consumer goods are typically distributed through retail channels, while industrial goods are distributed through direct sales or wholesalers.
6. Price: The pricing strategy for consumer goods is often based on supply and demand, while industrial goods are priced based on factors such as production costs and competition.
7. Branding: Consumer goods often rely heavily on branding and packaging to differentiate themselves from competitors, while industrial goods may prioritize technical specifications and functionality.
8. Purchase decision: Consumer goods are usually purchased by individuals based on emotional or personal factors, while industrial goods are purchased by businesses based on rational considerations such as cost, reliability, and performance.

(b) Selective and Intensive Distribution:

1. Definition: Selective distribution involves selling products through a limited number of carefully chosen intermediaries, while intensive distribution involves selling products through as many outlets as possible.
2. Target market: Selective distribution is used for products that are targeted to a specific niche market, while intensive distribution is used for products that are targeted to a wide range of customers.
3. Control: Selective distribution allows for greater control over the brand and image, as the number of intermediaries is limited, while intensive distribution requires less control as the product is widely available.
4. Reach: Selective distribution limits the reach of the product to specific areas, while intensive distribution expands the reach of the product to multiple areas.
5. Cost: Selective distribution is often more expensive as it involves working with a limited number of intermediaries, while intensive distribution is less expensive as it involves working with a larger number of intermediaries.
6. Competition: Selective distribution is often used in markets with high competition, while intensive distribution is often used in markets with lower competition.
7. Product complexity: Selective distribution is often used for products that require more education and support, while intensive distribution is often used for products that are easily understood by customers.
8. Shelf space: Intensive distribution requires more shelf space, while selective distribution requires less shelf space.

(c) Advertising and Publicity:

1. Definition: Advertising is a paid form of communication intended to promote a product or service, while publicity is a non-paid form of communication that seeks to create positive media coverage for a product or service.
2. Control: Advertising provides a high level of control over the message and placement, while publicity provides less control over the message and placement.
3. Cost: Advertising is often more expensive than publicity, as it involves paying for media placement and production costs.
4. Reach: Advertising can reach a larger audience than publicity, as it is often placed in mass media outlets, while publicity may have a more limited reach.
5. Credibility: Publicity is often seen as more credible than advertising, as it is based on the opinions of third-party media outlets.
6. Targeting: Advertising can be targeted to specific audiences, while publicity is often more difficult to target to specific audiences.
7. Timing: Advertising can be timed to coincide with specific events or promotions, while publicity is often more dependent on the timing and interest of media outlets.
8. Purpose: Advertising is primarily used to increase sales and promote products, while publicity is often used to build brand awareness and credibility

(d) Selling and Marketing:

1. Definition: Selling involves the process of persuading customers to purchase a product or service, while marketing involves a broader set of activities designed to create, communicate, and deliver value to customers.
2. Focus: Selling focuses on individual transactions and closing deals, while marketing focuses on building long-term relationships with customers.
3. Scope: Selling is a subset of marketing, which includes other activities such as market research, product development, and pricing.
4. Approach: Selling is often a more personal and direct approach to interacting with customers, while marketing can be more indirect and focused on communicating through mass media.
5. Timing: Selling usually occurs after the product or service has been developed, while marketing begins before the product or service has been developed and continues throughout the product lifecycle.
6. Goal: The goal of selling is to increase revenue and profits by closing deals with customers, while the goal of marketing is to create customer value and build long-term relationships.
7. Feedback: Selling often involves more direct and immediate feedback from customers, while marketing may take longer to see the results of their efforts.
8. Strategy: Selling can be seen as a tactical aspect of a marketing strategy, while marketing is a broader and more strategic approach to creating and delivering value to customers.