Questionnaire & Solved Answers

MARKETING MANAGEMENT [MB0046]

Questionnaire MB0046_MBA_Sem2_Fall/August 2012

Master of Business Administration - MBA Semester 2 MB0046 Marketing Management - 4 Credits Assignment Set- 1 (60 Marks)
Note: Each question carries 10 Marks. Answer all the questions. Q.1 Marketing involves satisfaction of consumer needs. Elucidate the statement. Q.2 Conduct a SWOT analysis for any one automobile brand of your choice. How will this analysis help in planning marketing strategies for the brand? Q.3 Explain in brief the process involved in personal selling. Q.4 Describe the stages of business buying process. Q.5 Why is rural market important? What should marketers keep in mind when catering to this market? Q.6 Explain the core concepts of marketing. Define service and explain its relevance in modern society

Answers For Assignment Set-1 Q.1 Marketing involves satisfaction of consumer needs.- Elucidate the statement. A.1 Through many modern approaches for Marketing, it is stated that the prime function of Marketing is to satisfy the needs of the customers/consumers. A need can be defined as a felt state of deprivation of some basic satisfaction. The human needs can be further divided into three types as shown below:

Human Needs Physical Needs Social Needs Individual Needs

a. Physical needs:- It addresses the basic need for food, clothing, warmth & safety b. Social needs:- It calls for belongingness & affection c. Individual needs:- It includes needs for knowledge & self-expression. Wants are desire for specific satisfiers of deeper needs. Wants are shaped by culture & individual personality. For example, if someone is thirsty, this is his need. But if someone wants coca-cola to quench thirst this is his want. Human needs & wants are unlimited. While the resources available to meet them are limited. Demand is want for specific products that are backed by an ability & willingness to buy them at a price. For example, one has money to buy a coca-cola. Marketing aims at identifying the following: Human (& social) needs & wants, Consumers demand, Endeavour to satisfy them by creating, communicating & delivering products & services

Q.2 Conduct a SWOT analysis for any one automobile brand of your choice. How will this analysis help in planning marketing strategies for the brand? A.2 Strength Worldwide brand reputation Presence in India since manufacturing of Rajdoot (1985) Effective advertisement strategy Emphasis on R&D Products renowned for delivering high quality performance Established & seasoned market channel partners Opportunity Growth in the premium segment consumers New markets of developing worlds fast emerging New consumer segment in the domestic market- women, very fast developing Customers growing taste for fashionable & quality motor-cycles Weakness Less emphasis on aggressive salesmanship Presence of many outdated products in the product line Less number of sales/service points compared to other players Not being in India for over a decade

Threat Cut throat competition in all the segments of two-wheelers Increasing number of foreign & domestic competitors Rising raw material cost Increasing rates of interest on finance

Q.3 Explain in brief the process involved in personal selling. A.3

Q.4 Describe the stages of business buying process. A.4 I. Identify Need:- Identify the need for a product purchase. For example, a lawn company wants to offer mowing services to its clients. To do this if it needs to purchase a milling machine. Thus, the need to make a purchase of a product, a milling machine, is identified. Select Specific Product:- Select a specific product to meet the need. For example the lawn company must select which type of milling machines from the many varieties on the market meets the companys need for a milling machine the best. Appoint Purchase Team:- Put a team together to manage the purchase process, including finalizing the list of required technical specifications for the product and the bid solicitation and award process. Specify Technical Specifications:- Arrive at a list of required technical specifications for the product to ensure it meets the companys needs. Budget for Purchase:- Establish a budget for the purchase relying on the range of prices identified by the research done in Step III. Research Potential Suppliers:- Research the various product types that fit the need along with their suppliers to identify the most durable model at the best price. Solicit Bids:- Solicit bids from the manufacturers and suppliers of the identified product that meets all the required technical specifications. Award Contract:- Select a supplier from the bids submitted and award the purchase contract.

II.

III.

IV. V. VI. VII. VIII.

Q.5 Why is rural market important? What should marketers keep in mind when catering to this market? A.5 Let us discuss the facts about the Indian Rural Market:Rural market has following arrived and the following facts substantiate this. 742 million people Estimated annual size of the rural market FMCG Rs 65,000 Crore Durables Rs 5,000 Crore Agri-inputs (incl. tractors) Rs 45,000 Crore 2 / 4 wheelers Rs 8,000 Crore Opportunities: Infrastructure is improving rapidly. In 50 years only 40% villages connected by road, in next 10 years another 30%. More than 90 % villages electrified, though only 44% rural homes have electric connections. Rural telephone density has gone up by 300% in the last 10 years; every 1000+ pop is connected by STD. Social Indicators have improved a lot between 1981 and 2001 Number of pucca houses doubled from 22% to 41% and kuccha houses halved (41%to 23%)

 Percentage of BPL families declined from 46% to 27% Rural Literacy level improved from 36% to 59% Low penetration rates in rural so there are many marketing opportunities. Durables Urban Rural Total (% of rural HH) CTV 30.4 4.8 12.1 Refrigerator 33.5 3.5 12.0 FMCGs Urban Rural Total (% of rural HH) Shampoo 66.3 35.2 44.2 Toothpaste 82.2 44.9 55.6

Q.6 Explain the core concepts of marketing. Define service and explain its relevance in modern society. A.6 Core concept of Marketing:A. NEED/ WANT/ DEMAND: Need: It is state of deprivation of some basic satisfaction. eg.- food, clothing, safety, shelter. Want: Desire for specific satisfier of need. eg.- Indians needs food wants paneer tikka/ tandoori chicken. Americans needs food- wants hamburger/ French fries. Demand: Want for a specific product backed up by ability and willingness to buy. eg.- Need transportation. B. PRODUCTS- GOODS/ SERVICES/ PLACE. Product is anything that can satisfy need/ want. Product componenta. Physical Good. b. Service. c. Idea. C. VALUE/ COST/ SATISFACTION: Decision for purchase made based on value/ cost satisfaction delivered by product/ offering. Product fulfills/ satisfies Need/ Want. Value is products capacity to satisfy needs/ wants as per consumers perception or estimation. Each product would have a cost/ price elements attached to it.

D. EXCHANGE/ TRANSACTION: To satisfy need/ want, people may obtain the product through Self Production By force or coercion Begging Exchange

E. RELATIONSHIP/ NETWORKING: Relationship marketing:- Its a pattern of building long term satisfying relationship with customers, suppliers, distributors in order to retain their long term performances and business. Achieved through delivery of high quality good service fair pricing, over a period of time.

F. MARKET: A market consists of all potential customers sharing particular need/ want who may be willing and able to engage in exchange to satisfy need/ want. Market Size = fn (Number of people who have need/ want; have resources that interest others, willing or able to offer these resources in exchange for what they want). In Marketing terms: Sellers called as INDUSTRY. Buyers referred to in a group as MARKET. Types of Markets: Resource Market, Manufacturing Market, Intermediary Market, Consumer Market, Government market.

G. MARKETERS/ PROSPECTS: Working with markets to actualize potential exchanges for the purpose of satisfying needs and wants. One party seeks the exchange more actively, called as Marketer, and the other party is called Prospect. Prospect is someone whom marketer identifies as potentially willing and able to engage in exchange. Marketer may be seller or buyer. Most of time, marketer is seller. A marketer is a company serving a market in the face of competition. Marketing Management takes place when at least one party to a potential exchange thinks about the means of achieving desired responses from other parties.

MB0046_MBA_Sem2_Fall/August 2012

Master of Business Administration - MBA Semester 2 MB0046 Marketing Management - 4 Credits Assignment Set- 2 (60 Marks)

Note: Each question carries 10 Marks. Answer all the questions. Q.1 Explain the various steps involved in the design of a distribution channel. Q.2 Will the pricing and product policy of a multinational firm be different in a developed and an underdeveloped country? Justify your answer. Q.3 Explain the consumer decision making process Q.4 What is integrated marketing communication? Explain the integration marketing communication development process. Q.5 Explain the types of advertisements and characteristics of major media. Q.6 What are the advantages of branding? What value does the organisation and customers get out of the branding process?

Q.1 Explain the various steps involved in the design of a distribution channel. A.1 Webster (1976) made a field study with 31 manufacturers in eight states of USA, and realized some factors that influence intensity of industrial distributor: 1. Total market potential and its geographic concentration; 2. The manufacturers current market share and the intensity of competition; 3. Frequency of purchase and whether the product is an MRO (maintenance, repair, and operating supplies) or an OEM (original equipment) item; 4. Whether lack of availability could interrupt the customers production process; 5. Amount of technical knowledge required to sell or service the product; 6. Extent of product differentiation, determining how important immediate availability is a competitive variable.

Q.2 Will the pricing and product policy of a multinational firm be different in a developed and an underdeveloped country? Justify your answer. A.2 Product Policy: - Select a brand name that disguises the country of origin or even involves a favorable COO (Giordano Bossini) - Sheer innovation & drive for superior quality also help firms to overcome COO biases in the long run. Pricing: - Selling the product at a relatively low price will attract value-conscious customers who are less concerned about the brand's country of origin. - For product categories where price plays a signal of quality - high price may help.

Q.3 Explain the consumer decision making process. A.3

INFORMATION GATHERING/SEARCH

EVALUATION OF ALTERNATIVES

PURCHASE OF PRODUCT/SERVICE

POST PURCHASE EVALUATION

Q.4 What is integrated marketing communication? Explain the integration marketing communication development process. A.4 Integrated marketing communication (IMC) is an approach to brand communications where the different modes work together to create a seamless experience for the customer and are presented with a similar tone and style that reinforces the brands core message. Its goal is to make all aspects of marketing communication such as advertising, sales promotion, public relations direct marketing, online communications and social media work together as a unified force, rather than permitting each to work in isolation, which maximizes their cost effectiveness.

The Foundation - is based on a strategic understanding of the product and market. This includes changes in technology, buyer attitudes and behaviour and anticipated moves by competitors. The Corporate Culture - increasingly brands are seen as indivisible from the vision, capabilities, personality and culture of the corporation. The Brand Focus - is the logo, corporate identity, tagline, style and core message of the brand. Consumer Experience - includes the design of the product and its packaging, the product experience (for instance in a retail store) and service. Communications Tools - includes all modes of advertising, direct marketing and online communications including social media. Promotional Tools - trade promotions; consumer promotions; personal selling, database marketing, and customer relations management; public relations and sponsorship programs. Integration Tools - software that enables the tracking of customer behavior and campaign effectiveness. This includes customer relationship management (CRM) software, web analytics, marketing automation and inbound marketing software.

Q.5 Explain the types of advertisements and characteristics of major media. A.5 Press In the United Kingdom, spending is dominated by the national & regional newspapers, the latter taking almost all the classified advertising revenue. The magazines and trade or technical journal markets are about the same size as each other, but are less than half that of the newspaper sectors. Television This is normally the most expensive medium, and as such is generally only open to the major advertisers, although some regional contractors offer more affordable packages to their local advertisers. It offers by far the widest coverage, particularly at peak hours (roughly 7.0010.30 p.m.) and especially of family audiences. Offering sight, sound, movement and colour, it has the greatest impact, especially for those products or services where a 'demonstration' is essential; since it combines the virtues of both the 'story-teller' and the `demonstrator'. To be effective, these messages must be simple and able to overcome surrounding family life distractions & mdash; especially the TV remote.

Radio Radio advertising has increased greatly in recent years, with the granting of many more licenses. It typically reaches specific audiences at different times of the dayadults at breakfast, housewives during the day, and commuters during rush hours. Cinema Though national audience numbers are down, this may be the most effective medium for extending coverage to younger age groups, since the core audience is 15 to 35. Internet/Web Advertising This rapidly growing marketing force borrows much from the example of press advertising, but the most effective useadopted by search enginesis interactive. Mobile Advertising Personal mobile phones have become an attractive advertising media to network operators, but are relatively unproven and remain in media buyers' sidelines.

Q.6 What are the advantages of branding? What value does the organisation and customers get out of the branding process? A.6 Advantages of branding:1. Memorability. A brand serves as a convenient container for a reputation and good will. 2. Loyalty. When people have a positive experience with a memorable brand, they're more likely to buy that product or service again than competing brands. 3. Familiarity. Branding has a big effect on non-customers too. Psychologists have shown that familiarity induces liking. 4. Premium image, premium price. Branding can lift what you sell out of the realm of a commodity, so that instead of dealing with price-shoppers you have buyers eager to pay more for your goods than for those of competitors. 5. Extensions. With a well-established brand, you can spread the respect you've earned to a related new product, service or location and more easily win acceptance of the newcomer. 6. Greater company equity. Making your company into a brand usually means that you can get more money for the company when you decide to sell it. 7. Lower marketing expenses. Although you must invest money to create a brand, once it's created you can maintain it without having to tell the whole story about the brand every time you market it. 8. For consumers, less risk. When someone feels under pressure to make a wise decision, he or she tends to choose the brand-name supplier over the no-name one. Brand is an advantage to the Customer, and the Company. Brand is a promise to the Customer that a stipulated quality will be maintained. if you cannot ensure a consistent quality on the product , you cannot create a brand. So the customer can purchase a branded product believing on its quality. It will reduce his burden of purchase.Such as time in searching and examining for ensuring quality etc. Brand is advantage to the society because the society will get unadulterated quality on the product so that the standard of living of the society will improve. And also expenses incurred by the society by using the substandard product will reduce etc. For the company, the company can charge some extra premium on the product offered and the customer will be willing to pay the premium.