NAME: ROLL NUMBER:

KOTIAN SUBHA RAMESH 511016602

COURSE:

MASTER OF BUSINESS ADMINISTRATION

SEMESTER:

Second

SUBJECT:

marketing management

SUBJECT CODE:

MB0046

Centre code:

02542

ASSIGNMENT SET: I

marketing management
Q.1 a. Explain the different micro-environmental forces with examples. The marketing environment consists of all the factors and forces outside marketing that affect the marketing managements ability to develop and maintain successful relationships with its target customers. To identify opportunities and monitor threats, the company must begin with a thorough understanding of the marketing environment in which the firm operates. Microenvironment consists of six forces that affect its ability to serve its customers. They are: 1. 2. 3. 4. 5. 6. The Company. Intermediaries Publics. Competitors. Customer. Suppliers.

Company

Suppliers

Intermediaries

Micro Environment

Customers

Publics

Competitors

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marketing management
1. The Company: The first force of Micro Environment which is also called as an internal environment. Marketing managers must decide within the parameters laid by top management. Marketing managers are link to all departments hence they are closely connected finance, purchase, manufacturing and account for achieving common goal. For successful product and successful company all department should think about customer first to provide utmost customer satisfaction. 2. Intermediaries: Intermediaries plays an important role in distribution, selling and promoting the goods and services. Intermediaries help the company to promote, sell, and distribute its goods to final buyers. Intermediaries help the company to find customers and perform important function more economical than the company itself. 3. Publics: Public is a group which helps a company to generate the financial resources, creating the company image, examining the companys policy and developing the attitude towards the product. There are 6 types of publics: a. Financial publics: Financial public influence the companys ability to obtain funds e.g. Banks and stockholders are the major financial publics. b. Media publics: Media publics carry news, features, and editorial opinion. c. Citizen Action Groups: A companys decisions are often questioned by consumer organizations. d. General public: A company must be concerned about the general publics attitude toward its products and services. e. Internal publics: Workers, managers, volunteers, and the board of directors. 4. Competitors: A company should always keep a track of its competitors because they are the one who can decrease the sale of the company like sale of Sunsilk Shampoo will be affected by Dove. A company must secure a strategic advantage over competitors by positioning their offerings to be successful in the marketplace.

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marketing management
5. Suppliers: There are many kind of suppliers to an organization. They are typically raw material suppliers, energy and fuel suppliers, labour suppliers, and so on. Suppliers are firms and individuals that provide the resources needed by the company and its competitors to produce goods and services. Suppliers are a source of competition to firms nowadays. Supplier relationships are one way of ensuring competitive and quality products for an organization. b. Mention the different ad appeals with suitable examples. The message should gain attention, hold interest, arouse desire, and elicit action (AIDA).The AIDA framework suggests the desirable qualities of any communication. In determining message content, management searches for an appeal, theme, idea, or unique selling proposition. There are three types of appeals: Emotional Appeals: Emotional appeals attempt to stir up negative or positive emotions that will motivate purchase. Marketers search for the right emotional selling proposition. Even when the product is similar to the competitions product, it may have unique associations that can be promoted. Communicators also work with negative appeals such as fear, guilt, and shame to get people to do things (brush their teeth) or stop doing things (smoking). In addition, positive emotional appeals such as humor, love, pride, and joy are often part of the message content. Eg: Amitabh Bhachan in ICICI prudential add & Rexona Deodorant Rational appeals: Rational appeals engage self-interest by claiming the product will produce certain benefits such as value or performance. It is widely believed that industrial buyers are most responsive to rational appeals because they are knowledgeable about the product, trained to recognize value, and accountable to others for their choices. Consumers, when they buy certain bigticket items, also tend to gather information and estimate benefits. Eg: Horlicks Foodels with rice, wheat, ragi and corn which give more nutritious food. Moral Appeal: Moral appeals are directed to the audiences sense of what is right and proper. These are often used to encourage people to support social causes. E.g.: Blood donation for thalesmia patient and Naetra Dhan.

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marketing management
Q.2 What are the different market entry strategies if a company wants to enter international markets? If a company wants to enter international market the company first need to define its marketing objectives and policies. Once company decides to enter international market the next step would be how many markets to enter and its difficulty. Once market found to be attractive, companies should decide how to enter the market. Company can enter the international market by adopting one of the following strategies. 1. 2. 3. 4. 5. 6. Exporting Licensing Contract Manufacturing Management contract Joint Ownership Direct Investment

1. Exporting: Exporting to a foreign market is a strategy many companies follow for at least some of their markets it also add volume to an already existing production operation located to a different place and the marginal profitability of such exports tends to be high. The form of exporting can be directly or indirectly. Direct can under the firm control and indirect can be outside the firm control. Direct exporting includes setting up an export department within the firm or having the firm`s sales force sell directly to foreign customers. Successful direct exporting depends on the capability of relationship built up between the exporting firm and the local importer. The exporter saves considerable investment costs by building the relationship well. Indirect exporting includes dealing through export management companies of foreign agents, merchants or distributors. The major advantage for managers using a domestic intermediary lies in that individual`s knowledge of foreign market conditions. 2. Licensing: Licensing is the method of market entry. Licensing can be used by company for number of reason. Licenses are signed for a variety of time periods. Depending on the investment needed to enter the market, the foreign licensee may insist on a longer licensing period to pay off the initial investment. A licensing agreement will avoid the potential risk associated with investments in fixed facilities. Licensing is an attractive mode in markets where political and economic uncertainties make a greater involvement risky. Both commercial and political risks are absorbed by the licensee.
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3. Contract Manufacturing: Under contract manufacturing, a company arranges to have its products manufactured by an independent local company on a contractual basis. This is an entry mode in which a firm contracts with a foreign firm to manufacture parts or finished products or to assemble parts into finished products. Contract manufacturing is employed where the production technology involved is widely available and where the marketing effort is of crucial importance in the success of the product.

4. Management Contracting: A company enters the international market by providing the knowhow of the product to the domestic manufacturer. The capital, marketing and the other activities are carried out by the local manufacturer; hence it is less risky too. 5. Joint Ownership: A company gets into Joint Venture in which an International Company invests equally with a domestic manufacturer. Joint Ownership may have important skills or contacts of value to the international firm. 6. Direct Investment: Company invests in manufacturing which may enjoy low cost advantages of that country. Many manufacturing firms invest in low cost market and get low cost advantage. Government also provides incentives and tax benefits to the company which manufactures the product in their country. There is government restriction in some countries to opt only for direct investment, as it produces the job to the local people. This mode also depends on the country attractiveness which may become risky if the market matures or unstable government exists.

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marketing management
Q.3. a. State the meaning of Product life cycle and explain the different stages involved in it. Every product goes series of stages since its inception and till it completely fades out from the market. The product which is introduced into the market will undergo some changes over period of time, sales will fluctuate for which market will be keen in finding how does sales changes over period and what strategies are best suited at that point. It can easily elucidate in the below graph:

A product passes through five stages which are as follows: 1. 2. 3. 4. 5. Product development stage Introduction Stage Growth Stage Maturity Stage Decline Stage

1 Product development stage: This is most crucial and risky stage which company needs to identify and enhance it. During this stage it requires huge investment and market research. Usually companies incur losses at this stage. When the product is introduced, sales will be low until customers become aware of the product and its benefits. Some firms may
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marketing management
announce their product before it is introduced, but such announcements also alert competitors and remove the element of surprise. Advertising costs typically are high during this stage in order to rapidly increase customer awareness of the product and to target the early adopters. During the introductory stage the firm is likely to incur additional costs associated with the initial distribution of the product. These higher costs coupled with a low sales volume usually make the introduction stage a period of negative profits. Hence it very important that before introducing any product it should be will researched and developed to take it to introduction level. 2 Introduction Stage: The product is introduced in the market through a focused and intense marketing effort designed to establish a clear identity and promote maximum awareness. When the product is new to the market, consumer awareness is usually very low. Company then adopts heavy sales promotion and product awareness programs. In this stage the sales are low and cost of the product is very low. The need for immediate profit is not a pressure at this stage the more focus is towards product awareness. The goal of any new product introduction is to meet consumer's needs with a quality product at the lowest possible cost in order to return the highest level of profit. 3 Growth Stage: The growth phase occurs when a product has survived its introduction and is beginning to be noticed in the marketplace. A company can decide if it wants to go for increased market share or increased profitability. The growth stage is a period of rapid revenue growth. Sales increase as more customers become aware of the product and its benefits and additional market segments are targeted. Once the product has been proven a success and customers begin asking for it, sales will increase further as more retailers become interested in carrying it. The marketing team may expand the distribution at this point. This is the boom time for any product. Production increases, leading to lower unit costs. Minor changes are made as more feedback is gathered or as new markets are targeted. The goal for any company is to stay in this phase as long as possible.

4 Maturity Stage: At the maturity stage, sales growth has started to slow and is approaching the point where the inevitable decline will begin. A product faces more competition in the market a competitor may provide high quality product at lower price. The maturity stage is usually the longest of the four life cycle stages, and it is not uncommon for a product to be in the mature stage for several decades.
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marketing management
5 Decline Stage: This stage occurs when the product peaks in the maturity stage and then begins a downward slide in sales. Finally revenues will drop to the point where it is no longer reasonable to continue making the product. Investment is minimized the product can simply be discontinued or it can be sold to another company. The company other expense budget comes down and it struggle to meet its costs. b. Define Customer Relationship Management. Customer relationship management (CRM) is a widely-implemented strategy for managing a companys interactions with customers clients and sales prospects. The goal of the company goals is to attract and win new clients nurture and retain those the company already has attract former clients back into the double and reduce the costs of marketing and client service. CRM can help a business acquire new customers through contact management, selling, and fulfillment. CRM is been implementing by many company it offer many benefits to company. Customer Relationship Management (CRM) is specific software that allows a company to measure and control contacts with customers. The Customer Relationship Management is the procedure that is crucial for every business. The CRM will be able to measure the performance of the business on the basis of internal benchmarks. CRM processes that help form individualized relationships with customers (to improve customer satisfaction) and provide the highest level of customer service to the most profitable customers; CRM processes that provide employees with the information they need to know their customers' wants and needs, and build relationships between the company and its customers. CRM help the company to manage customer relationships in an organized and efficient manner.

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marketing management
Q.4. a. You are a sales manager in ABC firm. You have taken some interviews and shortlisted a few candidates. How will you select the right candidate for the sales job? Selection is process of choosing or short listing the suitable candidates out of many who have applied. Selection is recruitment but recruitment is not selection. Selection is a process of rejection of unfits. Being a sales manager of ABC Company and after short listing a few candidates; selecting a right candidate for the sales job is an important task. Selecting a right candidate can lead to high sales of the company and high productivity whereas selecting a wrong candidate can lead to wastage in hiring and low productivity to company and when candidate quits again the cost of findings and training the new candidates plus the cost of lost sales. After doing all the initial steps of selection like screening and ref check ,one to one interview plays vital role here I can know candidate clearly also his positive and negative points. As a sales manager I will take patterned and NonPatterned interview. In patterned interview I will be able to make out the right attitude of the candidate by comparing other candidates answer. Under Nonpatterned interview I as sales manager will ask the candidate how as sales executive you will sell our company product by giving all positive and negative points about the product. Here a candidate is allowed to give his suggestion freely and I can judge the candidate confidence, sales attitude, integrity, knowledge about the product and most important right selling, it should not happen selling the product to wrong customer just to meet his daily target. For e.g.: selling the Private Equity fund with high risk to 65 year old man. After Personal Interview I will take psychological test which include Ability test, Habitual Characteristic test and Achievement test. This test will help me to evaluate the candidates leadership quality, cooperation, supervision capacity and his ability to take a role of sales manager. Once the candidate is through from above all he will be sent for Medical Examination as physical fitness is important to take a job role and responsibility and after that the candidate is offered an appointment letter and sent for training.

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marketing management
b. As a consumer, what are the steps you will undertake before you decide to buy a car? As a consumer I will surely undertake adoption process before I decide to buy a car. According to Philip Kotler Adoption is The mental process through which an Individual passes from first hearing about an Innovation to final adoption. Adoption Process

Awareness

Evaluation

Adoption

Interest

Trail

Awareness: Before buying a New Car I should be aware about different brand available in the market. What are the features which will fit in my budget and moreover which company is offering highest offer like free insurance for how many years, Car servicing facility, etc. Colour availability, safety and loan facility at lower interest rate also matter. Interest: After getting the awareness about the car I will show interest and will visit two dealers which I may opt to buy one is Saud Bahwan for Toyota & other Zubair Motors for Mitsubishi and will take detailed information about the car which I wish to buy. Evaluation: I will take both company broucher and compare which will be more suitable to me. I will compare which company is giving more features and once I buy and if I want to sell it will that company car have resale value and after 5 years what will be the market price. After Evaluating both company now I will decide which company car to opt. Trial: After evaluating I have decided to buy Saud Bahwans Toyota RAV 4 special 4WD. I will call the dealer and tell him that I want to go for test drive but that you won't be buying right away .However, will buy there if RAV 4 in silver
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marketing management
colour is available, and if they can offer the vehicle at a fair price ;also calculate the loan for 3 years. Car is big investment and during test drive will see that the car will be used in after I buy it. I will drive over bumps, take tight corners and test the brakes in a safe location. Get in and out of the car several times and be sure to sit in the backseat. A new car is a big investment I will make sure that I spend enough time looking it over. Adoption: After test drive I will buy RAV 4 for 3 Year loan with initial 1000 RO payment. The reason behind to buy RAV 4 will be latest and good features with 7 seater, 4WD which is safe to drive even in mountains, the desired colour was available, one year free insurance. Q. 5 a. What are the features of Business markets? How is it different from consumer markets? Business market is the market where two business customers like retailers, distributors, manufacturer & distributor interact with each other regarding the purchase & sales of the end product to re-sale it to the end consumers. In business market one customer offers different schemes. Some of the features of Business Markets are: 1. Few but bulk Buyers: In this feature of business market buyer is few and buy in large quantity. Business marketers normally deal with far fewer buyers than do consumer marketers. Buyers for a few large firms do most of the purchasing in many industries. e.g.: Major companies are big customers in industries such as aircraft engines and defense weapons. 2. Geographical Concentration of buyers: Buyers are located in all geography and same with the seller as well. The companys worldwide marketing and sales were organized geographically, with sales covering customers in a wide range of industries. E.g.: shipping industry. 3. Variable demand: Demand for business products tends to be more volatile than demand for consumer products. An increase in consumer demand can lead to a much larger increase in demand for plant and equipment needed to produce the additional output. The nature of demand is fluctuating based on consumer markets, organization buy the goods and make the finished goods available in the market for final consumption. Larger the consumer demand, larger will be the organizational buying.

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marketing management
4. Systematic Purchasing: Business buyers often buy directly from manufacturers rather than through intermediaries, especially items that are technically complex or expensive. The purchasing activity is directly between the buyer and supplier organization which means there are no or few middleman involved. Purchasing activity is usually undertaken by purchase departments based on a proper structure and through various mechanisms like having purchase requisitions from the suppliers, renewing agreements. 5. Multiple buying influences: More people typically influence business buying decisions. Buying committees are common in the purchase of major goods; marketers have to send well-trained sales reps and often sales teams to deal with these well-trained buyers so there is should be proper resources to work in the department. 6. Reciprocation: Business buyers often select suppliers who also buy from them which means when an organization buy goods from another organization also might need certain other goods that are produces by the buyer organization. 7. Lease Agreement: Many industrial buyers lease rather than buy heavy equipment to conserve capital, get the latest products, receive better service, and gain tax advantages. The lesser often makes more profit and sells to customers who could not afford outright purchase.eg: General Electric leases truck and car fleets, aircraft, commercial trailers, railcars, and other major equipment products to business buyers. Difference between Consumer and Business Market: Characteristics Demand Consumer Market Consumer and Seller meet directly in the market. Size of the customer is huge as compare to Business Market Purchase is made for personal use. It is not subjected to tender and negotiation For selling the product in consumer market Business Market Direct meeting is not required always as of consumer market In Business Market there are few Buyer and seller but the purchasing power is very high. Purchase take place in professional level which includes tenders and negotiation In Business market advertising is not required
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No of Customer

Nature of Buy

Promotion

marketing management
advertising is required for as much as consumer awareness of the market as once getting product into contact and proper service buying and selling take place accordingly.

b. List out the 5 important requisites of an effective segmentation by giving suitable examples. Market segmentation must exhibit some characteristics they are: 1. 2. 3. 4. 5. Measurable and Obtainable Substantial Accessible Differentiable Actionable 1 Measurable and Obtainable: The size, purchasing power, and characteristics of the segments can be measurable and obtainable in terms of data. Segmentation cannot be carried out if information is not obtained. 2 Substantial: The segments are large and profitable enough to serve. A segment should be the largest possible homogeneous group worth going after with a tailored marketing program. 3 Accessible: The segments should be effectively reached and served at affordable cost. 4 Differentiable: The segments are conceptually distinguishable and respond differently to different marketing mixes. If two segments respond identically to a particular offer, they do not constitute separate segments. 5 Actionable: Effective programs should be formulated for attracting and serving the segments.

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Q. 6. Explain briefly what are the several processes involved in new product development. New products are very important for existing firms to keep the momentum and for new firms which can be differentiated. This process covers the stages from idea to strategy and analysis; the following process also covers the stages from product development through market testing and commercialization. Now let us see the process involved in new process development; Stage 1-Idea Generation Stage 2-Idea Screening Stage 3-Concept development Stage 4-Concept testing Stage 5-Marketing Strategy Development Stage 6- Business Analysis Stage 7-Product development Stage 8-Test Marketing Stage 9-Commercialization New Product Development Process:

Idea Generation

Stage 2
Idea Screening

Concept development

Stage 4
Concept Testing

Marketing Stargey Development

Stage 6
Business Anakysis

Product Development

Stage 8
Test Marketing

Commercializa tion

Stage 1

Stage 3

Stage 5

Stage 7

Stage 9

Stage 1-Idea Generation: The marketing concept holds that customer needs and wants are the logical place to start the search for new product ideas. New product idea can be generated either from the internal sources or external sources. Many of the best ideas come from asking customers to describe their problems with current products. In addition to customers, new-product ideas
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marketing management
can come from many sources like competitors, employees, channel members, sales, top management, advertising agencies, marketing research firms, and industry publications. Stage 2-Idea Screening: Once the firm has collected a number of new product ideas, the next step is to screen out the weaker ideas, because productdevelopment costs rise substantially with each successive development stage. Most companies require new-product ideas to be described on a standard form that can be reviewed by a new-product committee. The description states the product idea, the target market, and the competition, along with a rough estimate of the market size, product price, development time and costs, manufacturing costs, and rate of return. The ideas that survive this screening move on to the concept development stage. Stage 3-Concept development: A product idea is a possible product the company might offer to the market. In contrast, a product concept is an elaborated version of the idea expressed in meaningful consumer terms. A product idea can be turned into several concepts by asking: Who will use this product? What primary benefit should this product provide? When will people consume or use this product? By answering such questions, a company can often form several product concepts. Next, the product concept has to be turned into a brand concept. To transform the concept of a low-cost instant TATA NANO Car into a brand concept, the company must decide how much to charge and how customer will buy. Stage 4-Concept testing: Concept testing involves presenting the product concept to appropriate target consumers and getting their reactions. The concepts can be presented symbolically or physically. However, the more the tested concepts resemble the final product or experience, the more dependable concept testing is. In the past, creating physical prototypes was costly and time-consuming, but computer-aided design and manufacturing programs have changed that. Today firms can design a number of prototypes via computer and then create plastic models to obtain feedback from potential consumers. Companies are also using virtual reality to test product concepts. Stage 5-Marketing Strategy Development: After testing and selecting a product concept for development, the new-product manager must draft a three-part preliminary marketing-strategy plan for introducing the new product into the market. The first part will describe the target markets size, structure, and behavior; the planned product positioning; and the sales, market share, and profit goals sought in the first few years. The second part will outline the planned price, distribution strategy, and marketing budget for the first year. The third part will describe the long-run sales and profit goals and marketing-mix strategy over
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marketing management
time. This plan forms the basis for the business analysis that is conducted before management makes a final decision on the new product. Stage 6- Business Analysis: The company evaluates the proposed new products business attractiveness by preparing sales, cost, and profit projections to determine whether these satisfy company objectives. If yes then the product concept can move to the product-development stage. Stage 7-Product development: In this stage product is made to undergo further improvement. Required new features and improvised version are added to the product. There is also scope for innovation and using the latest technology into the product. Stage 8-Test Marketing: This is most important and crucial stage for testing the products performance and its durability in the market. Product can be tested by group customer interviews and adjustment is made wherever required. Stage 9-Commercialization: A product is launched in the market in this stage. A huge expense is occurred during this stage like to support the product a promotion activity is carried out, big banners, advertising, etc.

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