Question

1. Discuss the importance of marketing activities for each of the segments listed in the previous question.
   1. Discuss and explain how important you think advertising is for each of the market segments. Provide specific examples.
   2. Discuss and explain how important you think personal sales is for each of the market segments. Provide specific examples.
   3. Discuss and explain how important you think sales promotions are for each of the market segments. Provide specific examples.
   4. Discuss and explain how important you think public relations are for each of the market segments. Provide specific examples.
2. What is the difference between Capital and Operating Budget?
3. According to the simulation manual, how can you increase the quality rating for your hotel in the simulation?
4. Explain what diminishing marginal return is. Discuss if you can use the diminishing marginal return concept when you make your expenditure decisions. Give a specific example.
5. What is a positioning map? Explain and discuss how you can use positioning maps to make better managerial decisions.

Answer 1

Discuss and explain how important you think advertising is for each of the market segments. Provide specific examples.

Advertising has become important in today's competitive environment. It is important for each segment :

1) For Customers -Advertising has made buying decisions easy for customers. When the products are displayed in advertismenets through t4elevision, newspapers or radios, it helps people in knowing about the features and qualities of products or services. In addition, customers also get aware about the products available in the market and how to use them. .

2) For Producers and Sellers - Advertising helps in increasing sales , helps in creating goodwill, creating brand awareness. This ultimately helps the sellers and producers in increasing revenues.

3 ) For Society - Advertising helps educating the society. For educating people about new products or any social issues, advertising plays an important role. This helps in improving standard of living.

Examples of Advertisement : includes ads through images, videos and ads through banners, hoardings, wrapps etc.

Discuss and explain how important you think personal sales is for each of the market segments. Provide specific examples.

1) For Bsuiness : It helps business in following ways such as: used as an effective promotionla tool, minimises wastage of efforts to induce customers, brings consumer attention and builds link with customers.

2) For Customers - The importance of personal selling is more realised when customers are illiterate and rural customers, who do not have information about the product. This helps customers getting awared about the product or service through latest market information, gets expert advise etc.

3) For Society - Personal selling brings flexibility in helping people understand aspects in better way and uppgrades standard of living.

Discuss and explain how important you think sales promotions are for each of the market segments. Provide specific examples.

Following features defines the importance of sales promotion to differennt market segmeents;

• Helps in improving performance of middlemen .
• It helps in increasing sales and enhances sales of slow moving products and also stabilizes fluctuating sales trend.
• It attracts channel members to be engaged in maufacturing promotion efforts
• Helping sellers and producers in the way by enabling consumers switch to their brands

Discuss and explain how important you think public relations are for each of the market segments. Provide specific examples.

Public Relation is one of the most influencing and important maketing tools. It helps in following ways:

• Enhances Brand Credibility - Public Relation helps in bridging the gap between a business and its customers or clients.
• Increases Sales and Profits - Public Relation helps the customeers and clients in to get more options for connecting with company through business stories and press releases.
• Changes the mindset of people - The most effective way to deal with rumored bad reputation of company is through public relation. PR helps in conductiong campaigns and thus maintaining positive image.
• Increased online presence - Everyone is digitally connected in onlline world. Public Relation agencies provide bsuinesses with support and guidance to market themselves online.

What is the difference between Capital and Operating Budget?

Following is the key difference between Capital Budget and Operatig Budget:

Future Cash Flows are used to pay Capital Budgets frm the projects. This projects specifies the sources of fund and acquisition of fixed assets. Planning for capital acquisition is done for around 1-3 years.

Operational Budget represent the activities of firm in purchasing, selling and paying bills, and generally done on annual basis.

According to the simulation manual, how can you increase the quality rating for your hotel in the simulation?

Quality Rating can be increased can be increased using the following ways:

• EnsuringCleanliness and Comfort
• Monitor and controlling online reputation og hotel
• Know strong points of you hotel

Explain what diminishing marginal return is. Discuss if you can use the diminishing marginal return concept when you make your expenditure decisions. Give a specific example.

Law of Diminishing Marginal Return is a theory of economics that forecasts that after some optimal level capacity is accessed amarginal factor of production will actually result in smaller increase in output.

What is a positioning map? Explain and discuss how you can use positioning maps to make better managerial decisions.

Positioning Map is also known as perceptual maps. It is a visual technique designed to show how the target customers in the market positions the company offered products or services. In short, it is a map that displays customer'sperceptions in a diagram.

Positioning Map can be used to make better managerial decisions in the following wyas;

• Assessing strengths and weaknesses in relation ot competitive brands.
• Helps in identifying competitive davantage
• Determining market opportunities by empty space on the map