Master of Business Administration- Semester 2

MB0046 Marketing Management - 4 Credits (Book ID: B 1629) Assignment Set -1 (60 marks)
ROLL NO- 1208031128 STUDENT NAME- ARUN KUMAR MISHRA MBA-2ND SEM.

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Master of Business Administration- Semester 2

MB0046 Marketing Management - 4 Credits (Book ID: B 1629) Assignment Set -1 (60 marks) Marks 60
Note: Each Question carries 10 marks. Answer all the questions.

Q-1Explain the stages in the new product development process. Ans- 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. 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. 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. 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. 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. 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 the y 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

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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
Q-2 Explain the steps in Marketing Research Process.

Ans-Stages/Steps in marketing research Step 1: Problem Definition:The first step in any marketing research project is to define the problem. In defining the problem, the researcher should take into account the purpose of the study, the relevant background information, what information is needed, and how it will be used in decision-making. Problem definition involves discussion with the decision makers, interviews with industry experts, analysis of secondary data, and, perhaps, some qualitative research, such as focus groups. Once the problem has been precisely defined, the research can be designed and conducted properly. Step 2: Development of an Approach to the Problem Development of an approach to the problem includes formulating an objective or theoretical framework, analytical models, research questions, hypotheses, and identifying characteristics or factors that can influence the research design. This process is guided by discussions with management and industry experts, case studies and simulations, analysis of secondary data, qualitative research and pragmatic considerations. Step 3: Research Design Formulation A research design is a framework or blueprint for conducting the marketing research project. It details the procedures necessary for obtaining the required information, and its purpose is to design a study that will test the hypotheses of interest, determine possible answers to the research questions, and provide the information needed for decision making. Conducting exploratory research, precisely defining the variables, and designing appropriate scales to measure them are also a part of the research design. The issue of how the data should be obtained from the respondents (for example, by conducting a survey or an experiment) must be addressed. It is also necessary to design a questionnaire and a sampling plan to select respondents for the study. More formally, formulating the research design involves the following steps : 1. 2. 3. 4. 5. 6. 7. 8. Secondary data analysis Qualitative research Methods of collecting quantitative data (survey, observation, and experimentation) Definition of the information needed Measurement and scaling procedures Questionnaire design Sampling process and sample size Plan of data analysis

Step 4: Field Work or Data Collection Data collection involves a field force or staff that operates either in the field, as in the case of personal interviewing (in-home, mall intercept, or computer-assisted personal interviewing), from an office by telephone (telephone or computer-assisted telephone interviewing), or through
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mail (traditional mail and mail panel surveys with persecuted households). Proper selection, training, supervision, and evaluation of the field force help minimize data-collection errors. Step 5: Data Preparation and Analysis Data preparation includes the editing, coding, transcription, and verification of data. Each questionnaire or observation form is inspected, or edited, and, if necessary, corrected. Number or letter codes are assigned to represent each response to each question in the questionnaire. The data from the questionnaires are transcribed or keypunched on to magnetic tape, or disks or input directly into the computer. Verification ensures that the data from the original questionnaires have been accurately transcribed, while data analysis, guided by the plan of data analysis, gives meaning to the data that have been collected. Univariate techniques are used for analyzing data when there is a single measurement of each element or unit in the sample, or, if there are several measurements of each element, each RCH variable is analyzed in isolation. On the other hand, multivariate techniques are used for analyzing data when there are two or more measurements on each element and the variables are analyzed simultaneously. Step 6: Report Preparation and Presentation The entire project should be documented in a written report which addresses the specific research questions identified, describes the approach, the research design, data collection, and data analysis procedures adopted, and presents the results and the major findings. The findings should be presented in a comprehensible format so that they can be readily used in the decision making process. In addition, an oral presentation should be made to management using tables, figures, and graphs to enhance clarity and impact. Q-3Write a short notes on :A.Marketing Plan B. Marketing Planning process Ans-A. Marketing Plan: -The Marketing Plan is a highly detailed, heavily researched and,
hopefully, well written report that many inside and possibly outside the organization will evaluate. In many respects, the Marketing Plan is the most important document produced by marketers as it not only helps to justify what has occurred in the past, but is critical for explaining where a company intends to go in the future. The Marketing Plan is widely used by both large large corporate marketing departments and also by small startup companies. It is particularly important for marketers who seek funding for new projects or to expand existing products or services.

Essentially the Marketing Plan:

forces the marketing personnel to look internally in order to fully understand the results of past marketing decisions. forces the marketing personnel to look externally in order to fully understand the market in which they operate. sets future goals and provides direction for future marketing efforts that everyone within the organization should understand and support. is a key component in obtaining funding to pursue new initiatives.

The Marketing Plan is generally undertaken for one of the following reasons:
1. Needed as part of the yearly planning process within the marketing functional area. 2. Needed for a specialized strategy to introduce something new, such as new product planning, entering new markets, or trying a new strategy to fix an existing problem. ROLL NO-1208031128 Page 4

3. Is a component within an overall business plan, such as a new business proposal to the financial community.

There are many ways to develop and format a marketing plan. The approach taken here is to present a 6-Part plan that includes:
1. 2. 3. 4. 5. 6. . B. Marketing Planning process Purpose and Mission Situational Analysis Marketing Strategy and Objectives Tactical Programs Budgets, Performance Analysis and Implementation Additional Consideration

The market research process involves a round of separate stages of data interpretation, organization and collection. These stages could be considered as a benchmark of market research, but it depends on an organization how they have encapsulated their strategies to follow this process. Hence some of the interlinked stages could be conducted repeatedly and some of the stages can also be omitted. Given below is a typical market research process which is depicted stage-wise: Picking out the appropriate methodology- A specific methodology is entailed by the research professional after identifying the specific needs and exploring the case studies. It may include a combination of specific approaches like telephone survey, web or email survey, one-to-one interviews, secondary research etc. This methodology acts as a blueprint of research process and following basic steps:

Methods for collecting and preparing quantitative information. Determining the need of this information. Scaling and measuring procedures. Designing sample Questionnaire. Formulating case studies and sampling process. Planning information analysis.

Data Collection Process- This process includes field work and desk work for collecting all relevant data and information. Field work includes interviewing the personals by interacting them face to face by visiting them in home or offices or arranging group meetings at any preferred place. Desk work includes contacting personals over telephone or via series of emails and web meetings. This could take comparatively more time as compared to the field work. Involving experienced and trained executive for this helps in reducing data collection errors. Q-4Describe the international market entry strategies in brief. Ans-Choosing the correct market entry strategy is critical to your long-term success. Most small companies use the direct exporting strategy by engaging an agent or distributor but there are a number of options for you to examine and these are discussed below in order of least costly and least control to most expensive and most control.
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Exporting Direct exporting is that the market entry strategy chosen by most small companies. The reason for this is quite straightforward. Direct exporting is the most basic entry into international markets. Direct exporting involves the use of agents or distributors. It is important to understand the difference between an agent and a distributor. Licensing Licensing, as a market entry strategy, is best used by those companies that have a component of intellectual property in their product although it can be used by any type of company depending on what they are wanting to license. Franchising Franchising is becoming a more popular market entry strategy given the world wide branding of various products as a result of the internet. International franchise agreements are the same as domestic ones with the obvious exception that they must meet the commercial laws of the country you are franchising too.

Joint Ventures/Partnerships/Strategic Alliances Perhaps the most appropriate and valuable strategy for entering a foreign market is to work with a local partner, if you can find a good one. Local partners provide on the ground knowledge and this can be immensely important in foreign markets. However, there are different types of partners and each need to be evaluated depending on your firms particular requirements and capabilities.. Joint Ventures Joint ventures, or JVs, as they are commonly referred to is the most sophisticated of the partnership trio. A JV is the formation of a third independent company owned, but not necessarily, managed by the partners. Partnerships Partnerships can be formal or informal. An informal arrangement is one where your firm agrees with a local firm to work together to market or produce your product or service. A formal partnership is when you have a legal agreement to market or produce your service or product with detailed objectives and targets defined. Strategic Alliances Strategic alliances are simply a business-to-business collaboration. Strategic alliances can be formed for all a range of purposes from joint marketing to joint production to collaborative design or distribution. Foreign Direct Investment Foreign direct investment (FDI) is when a firm either purchases a local firm of builds its operations from scratch in the foreign market by setting up an office or factory. In short you become a local firm by doing this and have the advantage of being treated as a local company, having complete control of your operations and there is a shorter curve in learning about the
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local market. However, you will need to make the largest investment in accessing the market if this is the strategy you choose.

Turnkey Projects Turnkey projects are as the name implies. You build something, a factory, a hydro facility, a pulp mill to start up condition and hand over the key to the owner. Piggybacking Piggybacking is the process of supplying a good or service to a larger company in your domestic market that will then in turn sell its finished product internationally.

Q5. Discuss the various Price adjustment options adopted by the companies .

Ans-Pricing strategies for products or services encompass three main ways to improve profits. These are that the business owner can cut costs or sell more, or find more profit with a better pricing strategy. When costs are already at their lowest and sales are hard to find, adopting a better pricing strategy is a key option to stay viable. Merely raising prices is not always the answer, especially in a poor economy. Too many businesses have been lost because they priced themselves out of the marketplace. On the other hand, too many business and sales staff leave "money on the table". One strategy does not fit all, so adopting a pricing strategy is a learning curve when studying the needs and behaviors of customers and clients. Models of pricing: Cost-plus pricing is the simplest pricing method. The firm calculates the cost of producing the product and adds on a percentage (profit) to that price to give the selling price. This method although simple has two flaws;
Creaming or skimming

In most skimming, goods are sold at higher prices so that fewer sales are needed to break even. Selling a product at a high price, sacrificing high sales to gain a high profit is therefore "skimming" the market. Skimming is usually employed to reimburse the cost of investment of the original research into the product: commonly used in electronic markets when a new range, such as DVD players, are firstly dispatched into the market at a high price. This strategy is often used to target "early adopters" of a product or service. Early adopters generally have a relatively lower price-sensitivity - this can be attributed to: their need for the product outweighing their need to economise; a greater understanding of the product's value; or simply having a higher disposable income.
Premium pricing Main article: Premium pricing

Premium pricing is the practice of keeping the price of a product or service artificially high in order to encourage favorable perceptions among buyers, based solely on the price. The practice is intended to exploit the (not necessarily justifiable) tendency for buyers to assume that
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expensive items enjoy an exceptional reputation, are more reliable or desirable, or represent exceptional quality and distinction.
Predatory pricing Main article: Predatory pricing

Predatory pricing, also known as aggressive pricing (also known as "undercutting"), intended to drive out competitors from a market. It is illegal in some countries.
Contribution margin-based pricing Main article: Contribution margin-based pricing

Q6. Define Personal selling and also explain the personal selling process? Ans-The Personal Selling Process:The personal selling process is a consecutive series of activities conducted by the salesperson, the lead to a prospect taking the desired action of buying a product or service and finish with a follow-up contact to ensure purchase satisfaction. Prospecting - the first step in the personal selling process The process of looking for and checking leads is called prospecting or determining which firms or individuals could become customers. Up to 20% of a firm's customer base can be lost for reasons such as transfer, death, retirement, takeovers, dissatisfaction with the company and competition. A steadily growing list of qualified prospects is important for reaching the sales targets. The Pre-approach This stage involves the collecting of as much relevant information as possible prior to the sales presentation. The pre-approach investigation is carried out on new customers but also on regular customers. Systematic collection of information requires a decision about applicability, usefulness and how to organise the information for easy access and effective use.

The Approach The salesperson should always focus on the benefits for the customer. This is done by using the product's features and advantages. This is known as the FAB technique (Features, Advantages and Benefits).

Benefits : Refers to the benefits for the prospect. Eg. Saves you 20% on replacement cost. Step Four The Sales Presentation After the prospects interest has been grasped, the sales presentation is delivered. This involves a "persuasive vocal and visual explanation of a business proposition". It should be done in a
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relaxed atmosphere to encourage the prospect to share information in order to establish requirements. Some small talk may be necessary to reduce tension but the purpose always remains business. Step Five The Trial Close The trial close is a part of the presentation and is an important step in the selling process. Known as a temperature question - technique to establish the attitude of the prospect towards the presentation and the product. Step Six Handling Objections Objections are often indications of interest by the prospect and should not be viewed with misgiving by salespeople. The prospect is in fact requesting additional information to help him to justify a decision to buy. The prospect may not be fully convinced and the issues raised are thus very important. It also assists the salesperson to establish exactly what is on the prospect's mind.

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