Marketing Management

Internal Assignment No.1 Paper Code : BBA-203 Paper Title : Marketing Management Q.1.1 What do you understand by Marketing ? A.1.1 Marketing is the process of communicating the value of a product or service to customers. Marketing might sometimes be interpreted as the art of selling products, but selling is only a small fraction of marketing. As the term "Marketing" may replace "Advertising" it is the overall strategy and function of promoting a product or service to the customer. ***************************************************************************** ***************************************************************************** ************************************* Q.1.2 What are the components of marketing mix ? Q.1.2 1. Product. The Product area is concerned with developing the right "product" for the target market. This offering may involve a physical good, a service, or a blend of both. Keep in mind that Product is not limited to "physical good". 2. Place.Place is concerned with all the decisions involved in getting the "right" product to the target market's Place. A product isn't much good to a customer if it isn't available when and where it's wanted. A product reaches customers through a channel of distribution. (A channel of distribution is any series of firms - or individuals - from producer to final user or consumer.) 3. Promotion.The third P - is concerned with telling the target market about the "right" product. Promotion includes personal selling, mass selling, and sales promotion. It is the marketing manager's job to blend these methods. 4. Price. In addition to developing the right Product, Place, and Promotion, marketing managers must also decide the right Price. In setting a price, they must consider the kind of competition in the target market - and the cost of the whole marketing mix. They must also try to estimate customer reaction to possible prices. ***************************************************************************** ***************************************************************************** ************************************* Q.1.3 Construct product life cycle ? A.1.3 Introduction

This is the stage of low growth rate of sales as the product is newly launched in the market. Monopoly can be created, depending upon the efficiency and need of the product to the customers. A firm usually incurs losses rather than profit. If the product is in the new product class, the users may not be aware of its true potential. In order to achieve that place in the market, extra information about the product should be transferred to consumers through various media.The stage has the following characteristics: 1. Low competition 2. Firm mostly incurs losses and not profit. [edit]Growth Growth comes with the acceptance of the innovation in the market and profit starts to flow. As the monopoly still exists companies can experiment with new ideas and innovation in order to maintain the sales growth. This stage is the best time to introduce new effective products in the market thus creating an image in the product class in the presence of its competitors who try to copy or improve the product and present it as a substitute. [edit]Maturity In this, the end stage of the growth rate, sales slowdown as the product has already achieved acceptance in the market. New firms start experimenting in order to compete by innovating new models of the product. With many companies in the market, competition for customers becomes fierce, despite the increase in growth rate of sales at the initial part of this stage. Aggressive competition in the market results in profits decreasing at the end of the growth stage thus beginning the maturity stage. In addition to this, the maturity stage of the development process is the most vital. [edit]Decline This is the stage where most of the product class usually dies due to low growth rate in sales. A number of companies share the same market, making it difficult for all entrants to maintain sustainable sales levels. Not only is the efficiency of the company an important factor in the decline, but also the product category itself becomes a factor, as the market may perceive the product as "old" and may not be in demand. It is not always necessary that a product should go through these stages. it depends on the type of product, its competitors, scope of the product etc ***************************************************************************** ***************************************************************************** ************************************* Q.1.4 What do you mean by direct marketing ? A.1.4 Direct marketing is a channel-agnostic form of advertising that allows businesses and nonprofits organizations to communicate straight to the customer, with advertising techniques that can include Cell Phone Text messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, and outdoor advertising.Direct marketing is practiced by businesses of all sizes from the smallest start-up to the leaders on the Fortune

500. A well-executed direct advertising campaign can prove a positive return on investment by showing how many potential customers responded to a clear call-to-action. General advertising eschews calls-for-action in favor of messages that try to build prospects emotional awareness or engagement with a brand. Even well-designed general advertisements rarely can prove their impact on the organizations bottom line. ***************************************************************************** ***************************************************************************** ************************************* Q.1.5 Define rural marketing in india ? A.1.5 Rural Marketing is defined as any marketing activity in which one dominant participant is from a rural area. This implies that rural marketing consists of marketing of inputs (products or services) to the rural as well as marketing of outputs from the rural markets to other geographical areas. ***************************************************************************** ***************************************************************************** ************************************* Q.2. What do ytou mean by marketing environment ? Explain the various characteristics of Indian Marketing Environment ? A.2. The marketing environment, or market environment, is a marketing term that refers to all of the forces outside of marketing that affect marketing managements ability to build and maintain successful relationships with target customers. The market environment consists of both the macroenvironment and the microenvironment. The microenvironment refers to the forces that are close to the company and affect its ability to serve its customers. It includes the company itself, its suppliers, marketing intermediaries, customer markets, competitors, and publics. The company aspect of microenvironment refers to the internal environment of the company. This includes all departments, such as management, finance, research and development, purchasing, operations and accounting. Each of these departments has an impact on marketing decisions. For example, research and development have input as to the features a product can perform and accounting approves the financial side of marketing plans and budgets. The suppliers of a company are also an impQ.3.ortant aspect of the microenvironment because even the slightest delay in receiving supplies can result in customer dissatisfaction. Marketing managers must watch supply availability and other trends dealing with suppliers to ensure that product will be delivered to customers in the time frame required in order to maintain a strong customer relationship.

***************************************************************************** ***************************************************************************** ************************************* Q.3. What do you understand by product development ?Explain the process of new product development? A.3. In business and engineering, new product development (NPD) is the complete process of bringing a new product to market. A product is a set of benefits offered for exchange and can be tangible (that is, something physical you can touch) or intangible (like a service, experience, or belief). There are two parallel paths involved in the NPD process: one involves the idea generation, product design and detail engineering; the other involves market research and marketing analysis. Companies typically see new product development as the first stage in generating and commercializing new product within the overall strategic process of product life cycle management used to maintain or grow their market share. New Product Development Process New Product Development starts with idea generation A company has to generate many ideas in order to find one that is worth pursuing. The Major sources of new product ideas include internal sources, customers, competitors, distributors and suppliers. Almost 55% of all new product ideas come from internal sources according to one study. Companies like 3M and Toyota have put in special incentive programs or their employees to come up with workable ideas. Almost 28% of new product ideas come from watching and listening to customers. Customers: even create new products on their own, and companies can benefit by finding these products and putting them on the market like Pillsbury gets promising new products from its annual Bake-off. One of Pillsburys four cake mix lines and several variations of another came directly from Bake-Off winners recipes. About 30% of new product ideas come from analysis of competitors products. The company can watch competitors ads, press releases and write-ups in the press about their activities. Companies also buy competitors information and pay for industrial espionage. Resellers and others who are close to the market, can often pass on information about new developments. Other sources are trade magazines, shows and seminars, market research firms, government reports, advertising agencies and new product consultants. Idea Screening: -The purpose of idea generation is to create a large pool of ideas. The purpose of this stage is to pare these down to those that are genuinely worth pursuing. Companies have different methods for doing this from product review committees to formal market research. It, is helpful at this stage to have a checklist that can be used to rate each idea based on the factors required for successfully launching the product in the marketplace and their relative importance. Against these, management can assess how well the idea fits with the companys marketing

skills and experience and other capabilities. Finally, the management can obtain an overall rating of the companys ability to launch the product successfully. Concept Development and Testing An attractive idea has to be developed into a Product concept. As opposed to a product idea that is an idea for a product that the company can see itself marketing to customers, a product concept is a detailed version of the idea stated in meaningful consumer terms. This is different again from a product image, which is the consumers perception of an actual or potential product. Once the concepts are developed, these need to be tested with con- sumers either symbolically or physically. For some concept tests, a word or a picture may be suffi- cient, however, a physical presentation will increase the reliability of the concept test. After being exposed to the concept, consumers are asked to respond to it by answering a set of questions de- signed to help the company decide which concept has the strongest appeal. The company can then project these findings to the full market to estimate sales volume. Marketing Strategy Development This is the next step in new product development. The strategy statement consists of three parts: the first part describes the target market, the planned product positioning and the sales, market share and profit goals for the first few years. The second part outlines the products planned price, distribution, and marketing budget for the first year. The third part of the marketing strategy statement describes the planned long-run sales, profit goals, and the marketing mix strategy. Business Analysis Once the management has decided on the marketing strategy, it can evaluate the attractiveness of the business proposal. Business analysis involves the review of projected sales, costs and profits to find out whether they satisfy a companys objectives. If they do, the product can move to the product development stage. Product Development Here, R&D or engineering develops the product concept into a physical product. This step calls for a large investment. It will show whether the product idea can be developed into a full- fledged workable product. First, R&D will develop prototypes that will satisfy and excite customers and that can be produced quickly and at budgeted costs. When the prototypes are ready, they must be tested. Functional tests are then conducted under laboratory and field conditions to ascertain whether the product performs safely and effectively. Test Marketing - If the product passes the functional tests, the next step is test marketing: the stage at which the product and the marketing program are introduced to a more realistic market settings. Test marketing gives the marketer an opportunity to tweak the marketing mix before the going into the expense of a product launch. The amount of test marketing varies with the type of product. Costs of test marketing can be enormous and it can also allow competitors to launch a me- too product or even sabotage the testing so that the marketer gets skewed results. Hence, at times, management may decide to do away with this stage and proceed straight to the next one: If the company goes ahead with commercialization introducing the product to the market-it will face high costs for manufacturing and advertising and promotion. The company will have to decide on the timing of the launch (seasonality) and the location (whether regional, national or

international). This depends a lot on the ability of the company to bear risk and the reach of its distribution network. ***************************************************************************** ***************************************************************************** ********************************* Q.5. Describe the various features of marketing in 21st century in india ? A.5. The Basic Elements Of Marketing The marketing process can be thought of as a structure built on layers of successively complex effort. Figure 2 shows how these elements build on each other. A proper marketing effort should be built on: ! Market Research and Intelligence ! A validated Value Proposition ! A detailed Marketing Plan ! On-going measurement of Customer Satisfaction ! On-going measurement of ROA Market Research/Market Intelligence Market Research is the foundation of marketing and consists of a constant flow of information from the market. This information should include customer needs, market trends, competitive actions, and market demand. Sources of Market Research are customers, trade associations, government agencies, suppliers and consultants. Market Intelligence is the analysis of Market Research and the dissemination of this analysis throughout the business. Market Intelligence makes the information dynamic, actionable and

consumable by the organization. M a rk e t R e se a rc h a n d In te llig e n c e V a lu e P ro p o s itio n M a rk e tin g P la n & M a rk e tin g M ix C u s to m e r S a tisfa c tio n ROA In c re a s in g D iffic u lty Figure 2 The Marketing Pyramid Copyright 2001 The ChemQuest Group, Inc. All Rights Reserved 7 Value Proposition The Value Proposition is the next layer of Marketing. The Value Proposition is the keystone of the Marketing Plan and is a written statement of facts, assumptions and perceptions that suggest the reasons why a buyer will buy a set of differentiating features that compromise a sellers offering. The Value Proposition is derived from the marketers knowledge of the market, (particularly customer needs) combined with the marketers product features and how these features will meet the customers needs better than the incumbent or other alternative product. Marketing Plan and Marketing Mix

The Marketing Plan is the working document of the marketer. A well-developed Marketing Plan is developed directly from, and consistent with, the Value Proposition. Classic marketing theory breaks the Marketing Plan into four areas, the so-called 4 Ps: ! Product Plan A detailed plan of the product attributes, how these attributes meet customer needs, and how the product is differentiated from competition. This plan also includes details on how the product is designed, manufactured and managed. It should also address how the product co-exists in the market with other products and services of the business. ! Pricing Plan A plan of pricing strategy including what the price will be for the product (the so-called price list), a profit analysis of the product, and how pricing will be managed within the various distribution channels. The Pricing Plan should address product positioning versus other competitive products and how the price will be tactically managed in competitive and bid situations. ! Placement (Distribution) Plan A plan describing the ways the product is brought to the marketplace often referred to as distribution channels. This plan describes how the product will be sold (direct salesmen or through independent distributors), how and where the product will be inventoried and how the product will co-exist with other not-in-kind products in the value

chain. Copyright 2001 The ChemQuest Group, Inc. All Rights Reserved 8 ! Promotion Plan A plan that addresses the ways in which the product will be promoted in the market. Typical elements of this plan are advertising, branding, support and collateral materials (brochures, data sheets, etc) and public relations. The Marketing Plan can be thought of as the operating manual for the marketing process. Ideally, the Marketing Plan is directly linked to, and a part of, a larger corporate business plan. Customer Satisfaction Measurement Measuring Customer Satisfaction is important in determining if the Marketing Plan is successful in the marketplace. It is the outward metric. Customer Satisfaction measurement should determine how well the product and its company meets (and exceeds!) the customer needs particularly versus competition. Customer Satisfaction should also measure how the customer views the value of the product, how effectively distribution channels are operating and how promotional activities are improving awareness and customer loyalty for the product. Typical methods for measuring customer satisfaction involve personal interviews and surveys of existing, potential and former customers. ROA Measurement

As discussed earlier, the goal of marketing is to improve shareholder value and ROA is a proxy metric for measuring and monitoring shareholder value. ROA must exceed the cost of the businesss capital in order to bring shareholders value. Maximum business performance occurs when ROA increasingly exceeds the cost of capital with time. Unfortunately, in most companies ROA is difficult to measure on a product-specific basis. Marketers should work closely with controllers to build a product-specific income statement so that ROA can be measured and monitored. ***************************************************************************** ***************************************************************************** *********************************** Internal Assignment No.2 Paper Code : BBA-203 Paper Title : Marketing Management Q.1.1.What is the importance of Marketing ? A.1.1 to attempt to define, ccommunicate, control and add value to what corporations offer to customers, businesses and governments who acquire services and goods. A marketing mix is the use of various different media to reach a target audience. A market mix is variety of product available at market. ***************************************************************************** ***************************************************************************** *********************************** Q.1.2. Explain the process of marketing ? A.1.2 Marketing process: Under the marketing concept, the firm must find a way to discover unfulfilled customer needs and bring to market products that satisfy those needs. The process of

doing so can be modeled in a sequence of steps: the situation is analyzed to identify opportunities, the strategy is formulated for a value proposition, tactical decisions are made, the plan is implemented and the results are monitored. ***************************************************************************** ***************************************************************************** *********************************** Q.1.3. What do you mean by segmentation ? A.1.3. Segmentation is essentially the identification of subsets of buyers within a market that share similar needs and demonstrate similar buyer behavior. The world is made up of billions of buyers with their own sets of needs and behavior. Segmentation aims to match groups of purchasers with the same set of needs and buyer behavior. Such a group is known as a 'segment '. ***************************************************************************** ***************************************************************************** *********************************** Q.1.4. Explain the importance of public realtion ? A.1.4. Public relations is effective in helping: * Corporations convey information about their products or services to potential customers * Corporations reach local government and legislators * Politicians attract votes and raise money, and craft their public image and legacy * Non-profit organizations, including schools, hospitals, social service agencies etc. boost support of their programs such as awareness programs, fund-raising programs, and to increase patronage of their services ***************************************************************************** ***************************************************************************** *********************************** Q.1.5. Define the need of service marketing ? A.1.5. Services marketing is a form of marketing that focuses on selling services. They can be tricky to sell, and the marketing approach for them is much different than the approach for products. Some companies offer both products and services and must use a mixture of styles; for example, a store that sells computers also tends to also help people select computers and provide computer repair. Such a store must market both its products and the supporting services it offers to appeal to customers.

***************************************************************************** ***************************************************************************** *********************************** Q.2.. Describe the various factors of marketing environment ? A.2. Various Environmental factors Affecting Marketing Function. July 19, 2012 Various factors affecting marketing function. The environmental factors that are affecting marketing function can be classified into : 1) Internal environment and 2) External environment Internal Environment of Marketing : This refers to factors exsisting within a marketing firm. They are also called as controllable factors, because the company has control over these factors : a) it can alter or modify factors as its personnel, physical facilities, organization and function means, such as marketing mix, to suit the environment. There are many internal factors that infulence the marketing function, they are : Top Management : The organizational structure, Board of Director, professionalization of management..etc..Factors like the amount of support the top management enjoys from different levels of employees, shareholders and Board of Directors have important infulence on the marketing decisions and their implementation. Finance and Accounting: Accounting refers to measure of revenue and costs to help the marketing and to know how well it is achieving its objectives.Finance refers to funding and using funds to carry out the marketing plan. Financial factors are financial polices, financial position and capital structure. Research and Development : Research and Development refers to designing the product safe and attractive. They are technological capabilities, determine a company ability to innovate and compete. Manufacturing : It is responsible for producing the desired quality and quantity of products.Factors which infulence the competitiveness of a firm are production capacity technology andefficiency of the productive apparatus, distribution logistics etc.,

Purchasing : Purchasing refers to procurement of goods and services from some external agencies. It is the strategic activity of the business. Company Image and Brand Equity : The image of the company refers in raising finance, forming joint ventures or other alliancessoliciting marketing intermediaries, enteing purchase or sales contract, launching new products etc. In organization, the marketing resources like organization for marketin, quality of marketing, brand equity and dirtribution network have direct bearing on marketing efficiency. They are important for new product introduction and brand extension, etc.. External Environment of Marketing. External factors are beyond the control of a firm, its suceess depends to a large extent on its adaptability to the environment. The external marketing environment consists of : a) Macro environment, and b) Micro environment a) Micro environment: The environmental factors that are in its proximity. The factors influence the companys non-capacity to produce and serve the market.The factors are : 1) Suppliers: The suppliers to a firm can also alter its competitive position and marketing capabilities. These are raw material suppliers, energy suppliers, suppliers of labor and capital.According to michael Porter, the relationship between suppliers and the firm epitomizes a power equation between them. This equation is based on the industry condition and the extent to which each of them is dependent on the other. The bargaining power of the supplier gets maximized in the following situations: a) The seller firm is a maonopoly or an oligopoly firm. b) The supplier is not obliged to contend with othe substitute products for sale to the buyer group. c) The buyer is not an important customer. d) The supplierss product is an important input to the buyers business and finished product. e) The supplier poses a real threat of forward integration. 2) Market Intermediaries : Every producer has to have a number of intermediaries for promoting, selling and distributing the goods and service to ultimate consumers. These intermediaries may

be individual or business firms. These intermediaries are middleman (wholesalers, retailers, sgents etc. ), ditributing agency market service agencies and financial institutions. 3) Customers : The customers may be classified as : 1) Ultimate customers: These customers may be individual and householders. 2) Industrial customers: These customers are organization which buy goods and services for producing other goods and services for the purpose of other earning profits or fulfilling other objectives. 3) Resellers: They are the intermediaries who purchase goods with a view to resell them at aprofit. They can be wholesalers, retailers, distributors, etc. 4) Government and other non-profit customers: These customers purchase goods and services to those for whom they are produced, for their consumption in most of the cases. 5) International customers: These customers are individual and organizations of other countries who buy goods and services either for consumption or for industrial use. Such buyers may be consumers, producers, resellers, and governments. 6 )Competitors: Competitors are those who sell the goods and services of the same and similar description, in the same market. Apart from competition on price, there are like product differentiation. Therefore, it is necessary to build an efficient system of marketing. This will bring confidence and better results. 7) Public: It is duty of the company to satisfy the people at large along with its competitors and the consumers. It is necessary for future growth.The action of the company do infulence the other groups forming the general public for the company. A public is defined as any group that has an actual or potential interest in or impact on a companys ability to achieve its objective. Public relations are certainly a broad marketing operation which must be fully taken care of. Macro Environment: Macro environment factors act external to the company and are quite uncontrollable. These factors do not affect the marketing ability of the concern directly but indirectly the infulence marketing decisions of the company. These are the macro environmental factors that affect the companys marketing decisions : a) Demographic Forces: Here, the marketer monitor the population because people forms markets. Marketers are keenly interested in the size and growth rate of population in different cities, regions, and nations ; age distribution and ethnic mix ; educational levels; households patterns; and regional characteristics and movements.

b)Economic Factors: The economic environment consists of macro-level factors related to means of production and distribution that have an impact on the business of an organization. c) Physical Forces: Components of physical forces are earths natural renewal and non-renewal resources. Natural renewal forces are forest, food products from agriculture or sea etc. Nonrenewal natural resources are finite such as oil, coal, minerals, etc. Both of these components quite often change the level and type of resources available to a marketer for his production. d) Technological Factors: The technological environment consits of factors related to knowledge applied, and the materials and machines used in the production of goods and services that have an impact on the business of an organization. e) Political and Legal Forces: Developments in political and legal field greatly affect the marketing decisions. sound marketing decision cannot be taken without taking into account, the government agencie, political party in power and in opposition their ideologies, pressire groupss, and laws of the land. These variables create tremendous pressures on marketing management. Laws affect production capactiy, capability, product design, pricing and promotion. Government in almost all the country intervenes in marketing process irrespective of their political ideologies. f) Social and Cultural Forces: This concept has crept into marketing literature as an alternative to the marketing concept. The social forces attempt to make the marketing socially responsible. It means that the business firms should take a lead in eliminating socially harmful products and produce only what is beneficial to the soceity. These are numbers of pressure groups in the soceity who impose restrictions on the marketing process. ***************************************************************************** ***************************************************************************** *********************************** Q.3. Explain product life cycle and its different stages ? A.3. ***************************************************************************** ***************************************************************************** *********************************** Q.5. What do you mean by sales promotion ? Describe various sales promotion techniques ? A.5. Sales promotion is one of the seven aspects of the promotional mix. (The other six parts of the promotional mix are advertising, personal selling, direct marketing, publicity/public relations, corporate image and exhibitions.) Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include contests, coupons, freebies, loss leaders, point of purchase displays, premiums, prizes, product samples, and rebates

Steps in Sales Promotion To increase the sale of the product is to introduce a promotional mix with the following mix. 1. Advertising 2. Personal Selling 3. Direct Marketing 4. Publicity All are mainly aimed at consumer promotion which is aimed at the consumers. Consumer Sales Promotion Techniques 1. Cents - off -deal - : The brand will be offered at a lower price. Price reduction percentage will be offered at a lower price. Price reduction percentage will be marked on the package. 2. FSI - : Free standing Insert - : A coupon or booklet inserted into the local newspaper delivery. 3. Money back rebates - : Consumers are offered a part as money back if the receipt and barcode are mailed to the producer. 4. Buy - One - get - One - Free ( BOGOF) It is a self liquidating promotion.This is a premium sales promotion tactic. This is a programme where there will be profit if there is corresponding increase in sales. 5. New Media - : This is where websites and mobile phones surrport sales promotion. For example individual codes on the packet helping the consumer to enter the code into their website to see if they had won a prize or not. 6. Direct Marketing - : Products are sold through telemarketing and internet marketing. 7. Advertisement - : Advertisements are used to build long term image for the product. The main form of advertisement will be news papers, television ads, banners and web pages. 8. Sales Force Meeting - : The sales meetings will be conducted periodically to analyze the sales and to find out innovative techniques to increase the sales. 9. Personal Selling - : The products can be effectively increase the sales through personal sellings. Because personal selling gets personal confrontation and immediate response.

10. Exhibitions - : The exhibitions will be conducted in factory outlets and at major cities. 11. Point of Sales Displays - : The products will be displyed as follows to increase the sales. a. Dangles - : A sign that ways when a consumer walks by it. b. Dump bin - : A bin full of products dumped in a bin. c. Glorifies - : A small stage that elevates the products above other products. d. Wobbler - : A sign of the product that jiggles. e. Yes Unit - : An extra sales person pull out fact sheet. f. Competitions - : The consumer who buys the product will get coupon to participate in competition to win. 12. Publicity - :This very important in sales. The product will be developed through commercially significant news.Press release and radio presentation will also be conducted to increase the sales. 13. Export Promotion - : The promotion will be by participating in export promotional conferences and exhibitions and trade fares nationally and internationally. ***************************************************************************** ***************************************************************************** ***********************************