19 What is the difference between Personal selling and Sales promotion?

sales promotion- It refers to short-term use of incentives like discounts,free samples, displays, exchange offers, free gifts, exhibitions, road shows to attract the potential customers and to achieve more sales value.

Whereas personal selling is performing the task of selling through individual or representative by face to face interaction with customer. It is also known as salesman-ship.

20 What does market segmentation identify? How does it work?

Market segmentation involves dividing a market into smaller segments of buyers with distinct

needs, characteristics, or behaviors that might require separate marketing strategies or

mixes. The company identifies different ways to segment the market and develops profiles

of the resulting market segments.

Buyers in any market differ in their wants, resources, locations, buying attitudes, and buying

practices. Through market segmentation, companies divide large, heterogeneous markets

into smaller segments that can be reached more efficiently and effectively with products

and services that match their unique needs.

21 What do you know about motivation marketing?

There are three ways to get a motivational growth-strategy. First, link it to what people feel strongly about.

Many leaders wrongly believe that just because they have taken the trouble to develop a marketing strategy, that strategy automatically excites others.

If you don't root your strategy in the fervent convictions of employees and customers, you don't have a motivational growth-strategy. Steve Jobs' strategy for providing a powerful, versatile computer into the hands of average people around the world, fired the imaginations and the ardent actions of his colleagues and, ultimately, customers.

Second, raise the stakes. Follow Emerson's dictum: "Hitch your wagon to a star." Distinguish between vision and motivational growth-strategy. A vision is the star. The strategy is how you will hitch your wagon to it. When people's vision and strategy provide a higher purpose in their lives, their motivation is of a higher order.Steve Jobsconvinced John Scully to leave a high-level, fast-track position at PepsiCo and commit himself to the uncertainties of working at Apple by asking: "Do you want to sell sugar water for the rest of your life or do you want to change the world?"

Third, make the strategy simple and short. Growth can be complicated, but people's needs are simple. Bill Gateswrote a strategy in longhand on a single sheet of paper when he founded Microsoft. He still has possession of that paper and is still following that strategy.

The processes of putting that strategy into action may take comprehensive descriptions. Still, those descriptions should flow from simple, brief motivational elements.

22 What pricing strategies should be considered when fixing a price?

1) Penetration pricing: Price way low to enter the market.

Penetration pricing is the pricing technique of setting a relatively low initial entry price, a price that is often lower than the eventual market price. Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume.

2) Personalized pricing: Firms charge different prices to different consumers.

Many companies use personalized pricing to sustain competition, to remain in business, and to grow their business.

3) Market pricing: Pricing at the same level as the competition.

A firm has to assess how its product relates to a competitive product and set its price at a comparable level to stay competitive. For example, most agricultural commodities are sold in markets where price has been established by broad market forces. 

4) Cost-plus pricing: The cost of production plus a designated percentage is cost-plus pricing.

This method is useful in situations where costs are not known in advance. An example would be custom orders in the initial stages of developing a new product. For example, a group of friends of mine opened a company named InfoTech some time ago. They provide different IT services. As they explained to me, often it is very difficult to set a price at the beginning of the project, since projects sometimes are very different and additional details are reviled only in the middle or at the end of the project. So, first they calculate approximately what the price should/could be in order to cover all expenses and add  money on top of it.

5) Loss leaders: A company loses money on one service but earns on a related product.

This strategy is often implemented as a part of a promotion campaign. The intent of this practice is not only to have the customer buy the (loss leader) sale item, but other products that are not discounted.

One example is HP inkjet printers that are often sold to retail customers below their true value, at a price which seems to be affordable to most consumers. However, consumers have to pay the regular price for ink cartridges. It is ink cartridges, not the printers that generate high profits for the HP.