Marketing and Sales
What this domain tests
The exam tests the marketing mix, segmentation and positioning, and the difference between marketing and selling.
Core rules
- Marketing identifies customer needs and builds value; selling is one part of promotion.
- STP means segmentation, targeting and positioning.
- The 4Ps are product, price, place and promotion; services add people, process and physical evidence.
- Pricing methods include cost-plus, penetration, skimming, value-based and competitive pricing.
- The promotion mix includes advertising, sales promotion, personal selling, public relations and digital marketing.
- The sales process runs from prospecting and approach to presentation, objection handling, close and follow-up.
Worked example
A candle maker's unit cost is ₹60 and the target margin is 40% of selling price. Cost-plus price = cost ÷ (1 − margin) = 60 ÷ 0.6 = ₹100. At ₹100, contribution is ₹40. If competitors sell at ₹85, the maker must justify the premium through packaging or fragrance rather than simply cutting price. Reasoning: price follows both cost and customer value.
Traps
Do not say marketing equals advertising or selling. Do not set price on cost alone. Do not choose a target segment without checking ability to pay. Do not ignore after-sales follow-up.