Master of Business Administration - MBA Semester 2 MB0046 MARKETING MANAGEMENT Assignment Set- 1 Q.1 What is Marketing Information System?

? characteristics, benefits and information types. Explain its

Ans. A Marketing Information System can be defined as a system in which marketing information is formally gathered, stored, analysed and distributed to managers in accord with their informational needs on a regular basis. Set of procedures and practices employed in analyzing and assessing marketing information, gathered continuously from sources inside and outside of a firm. Timely marketing information provides basis for decisions such as product development or improvement, pricing, packaging, distribution, media selection, and promotion. Characteristics of MIS Philip Kotler defines MIS as a system that consists of people, equipment and procedures to gather, sort, analyze, evaluate and distribute needed, timely and accurate information to marketing decision makers. Its characteristics are as follows: 1. It is a planned system developed to facilitate smooth and continuous flow of information. 2. It provides pertinent information, collected from sources both internal and external to the company, for use as the basis of marketing decision making. 3. It provides right information at the right time to the right person. A well designed MIS serves as a companys nerve centre, continuously monitoring the market environment both inside and outside the organization. In the process, it collects lot of data and stores

in the form of a database which is maintained in an organized manner. Marketers classify and analyze this data from the database as needed. Benefits of MIS(Marketing Information System) Various benefits of having a MIS and resultant flow of marketing information are given below: 1. It allows marketing managers to carry out their analysis, planning implementation and control responsibilities more effectively. 2. It ensures effective tapping of marketing opportunities and enables the company to develop effective safeguard against emerging marketing threats. 3. It provides marketing intelligence to the firm and helps in early spotting of changing trends. 4. It helps the firm adapt its products and services to the needs and tastes of the customers. 5. By providing quality marketing information to the decision maker, MIS helps in improving the quality of decision making. Types of Marketing Information A Marketing Information System supplies three types of information. 1. Recurrent Information is the data that MIS supplies periodically at a weekly, monthly, quarterly, or annual interval. This includes data such as sales, Market Share, sales call reports, inventory levels, payables, and receivables etc. which are made available regularly. Information on customer awareness of companys brands, advertising campaigns and similar data on close competitors can also be provided. 2. Monitoring Information is the data obtained from regular scanning of certain sources such as trade journals and other publications. Here relevant

data from external environment is captured to monitor changes and trends related to marketing situation. Data about competitors can also be part of this category. Some of these data can be purchased at a price from commercial sources such as Market Research agencies or from Government sources. 3. Problem related or customized information is developed in response to some specific requirement related to a marketing problem or any particular data requested by a manager. Primary Data or Secondary Data (or both) are collected through survey Research in response to specific need. For example, if the company has developed a new product, the marketing manager may want to find out the opinion of the target customers before launching the product in the market. Such data is generated by conducting a market research study with adequate sample size, and the findings obtained are used to help decide whether the product is accepted and can be launched. Q.2 a. Examine how a firms macro environment operates. b. Mention the key points in Psychoanalytic model of consumer behaviour. Ans. The term micro-environment denotes those elements over which the marketing firm has control or which it can use in order to gain information that will better help it in its marketing operations. In other words, these are elements that can be manipulated, or used to glean information, in order to provide fuller satisfaction to the companys customers. The objective of marketing philosophy is to make profits through satisfying customers. This is accomplished through the manipulation of the variables over which a company has control in such a way as to optimise this objective. The variables are what Neil Borden has termed the marketing mix which is a combination of all the ingredients in a recipe that is designed to prove most attractive to customers. In this case the ingredients are individual elements that marketing can manipulate into the most appropriate mix. E Jerome McCarthy further dubbed the variables that the company can control in order to reach its target market the four Ps. Each of these is discussed in detail in later chapters, but a brief discussion now follows upon each of these elements of the marketing mix together with an explanation of how they fit into the overall notion of marketing. A scan of the external macro-environment in which the firm operates can be expressed in terms of the following factors:

Political Economic Social Technological

The acronym PEST (or sometimes rearranged as STEP) is used to describe a framework for the analysis of these macroenvironmental factors. A PEST analysis fits into an overall environmental scan as shown in the following diagram: Environmental Scan / External Analysis /\ Macroenviron Microenviron ment ment | P.E.S.T. Political Factors Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate. Some examples include:

\ Internal Analysis

tax policy employment laws environmental regulations trade restrictions and tariffs political stability

Economic Factors Economic factors affect the purchasing power of potential customers and the firms cost of capital. The following are examples of factors in the macroeconomy:

economic growth interest rates exchange rates inflation rate

Social Factors Social factors include the demographic and cultural aspects of the external macro environment. These factors affect customer needs and the size of potential markets. Some social factors include:

health consciousness population growth rate age distribution career attitudes emphasis on safety

Technological Factors Technological factors can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. Some technological factors include:

R&D activity automation technology incentives rate of technological change

External Opportunities and Threats The PEST factors combined with external micro environmental factors can be classified as opportunities and threats in a SWOT analysis. The Psychoanalytical Model: The psychoanalytical model draws from Freudian Psychology. According to this model, the individual consumer has a complex set of deepseated motives which drive him towards certain buying decisions. The buyer has a private world with all his hidden fears, suppressed desires and totally subjective longings. His buying action can be influenced by appealing to these desires and longings. The psychoanalytical theory is attributed to the work of eminent psychologist Sigmund Freud. Freud introduced personality as a motivating force in human behavior. According to this theory, the mental framework of a human being is composed of three elements, namely, 1. The id or the instinctive, pleasure seeking element. It is the reservoir of the instinctive impulses that a man is born with and whose processes are entirely subconscious. It includes the aggressive, destructive and sexual impulses of man. 2. The superego or the internal filter that presents to the individual the behavioral expectations of society. It develops out of the id, dominates the ego and represents the inhibitions of instinct which is characteristic of man. It represents the moral and ethical elements, the conscience.

3. The ego or the control device that maintains a balance between the id and the superego. It is the most superficial portion of the id. It is modified by the influence of the outside world. Its processes are entirely conscious because it is concerned with the perception of the outside world. The basic theme of the theory is the belief that a person is unable to satisfy all his needs within the bounds of society. Consequently, such unsatisfied needs create tension within an individual which have to be repressed. Such repressed tension is always said to exist in the subconscious and continues to influence consumer behavior. 4. The Sociological Model: According to the sociological model, the individual buyer is influenced by society or intimate groups as well as social classes. His buying decisions are not totally governed by utility He has a desire to emulate, follow and fit in with his immediate environment. 5. The Nicosia Model: In recent years, some efforts have been made by marketing scholars to build buyer behavior models totally from the marketing mans standpoint. The Nicosia model and the Howard and Sheth model are two important models in this category. Both of them belong to the category called the systems model, where the human being is analyzed as a system with stimuli as the input to the system and behavior as the output of the system. Francesco Nicosia, an expert in consumer motivation and behavior put forward his model of buyer behavior in 1966. The model tries to establish the linkages between a firm and its consumer how the activities of the firm influence the consumer and result in his decision to buy. The messages from the firm first influence the predisposition of the consumer towards the product. Depending on the situation, he develops a certain attitude towards the product. It may lead to a search for the product or an evaluation of the product. If these steps have a positive impact on him, it may result in a decision to buy. This is the sum and substance of the activity explanations in the Nicosia Model. The Nicosia Model groups these activities into four basic fields. Field one has two subfields the firms attributes and the consumers attributes. An advertising message from the firm reaches the consumers attributes. Depending on the way the message is received by the consumer, a certain attribute may develop, and this becomes the input for Field Two. Field Two is the area of search and evaluation of the advertised product and other alternatives. If this process results in a motivation to buy, it becomes the input for Field Three. Field Three consists of the act of purchase. And Field Four consists of the use of the purchased item. Q.3 Explain the key roles played and various steps involved in organizational buying.

Ans. Point 1 Introduction. The need for an understanding of the organizational buying process has grown in recent years due to the many competitive challenges presented in businessto-business markets. Since 1980 there have been a number ofkey changes in this area, including the growth of outsourcing, the increasing power enjoyed by purchasing departments and the importance given to developing partnerships with suppliers. Point 2 The organizational buying behaviour process. The organizational buying behaviour process is well documented with many models depicting the various phases, the members involved, and the decisions made in each phase. The basic five phase model can be extended to eight; purchase initiation; evaluations criteria formation; information search; supplier definition for RFQ; evaluation of quotations; negotiations; suppliers choice; and choice implementation (Matbuy, 1986). Point 3 The buying centre. The buying centre consists of those people in the organizational who are involved directly or indirectly in the buying process, i.e. the user, buyer influencer, decider and gatekeeper to who the role of initiator has also been added. The buyers in the process are subject to a wide variety and complexity of buying motives and rules of selection. The Matbuy model encourages marketers to focus their efforts on who is making what decisions based on which criteria. Point 4 Risk and uncertainty The driving forces of organizational buying behaviour. This is concerned with the role of risk or uncertainty on buying behaviour. The level of risk depends upon the characteristics of the buying situation faced. The supplier can influence the degree of perceived uncertainty by the buyer and cause certain desired behavioural reactions by the use of information and the implementation of certain actions. The risks perceived by the customer can result from a combination of the characteristics of various factors: the transaction involved, the relationship with the supplier, and his position vis-a-vis the supply market. Point 5 Factors influencing organizational buying behaviour. Three key factors are shown to influence organizational buying behaviour, these are, types of buying situations and situational factors, geographical and cultural factors and time factors.

Point 6 Purchasing Strategy. The purchasing function is of great importance because its actions will impact directly on the organizations profitability. Purchasing strategy aims to evaluate and classify the various items purchased in order to be able to choose and manage suppliers accordingly. Classification is along two dimensions: importance of items purchased and characteristics of the supply market. Actions can be taken to influence the supply market. Based on the type of items purchased and on its position in the buying matrix, a company will develop different relationships with suppliers depending upon the number of suppliers, the suppliers share, characteristics of selected suppliers, and the nature of customer-supplier relationships. The degree of centralization of buying activities and the missions and status of the buying function can help support purchasing strategy. The company will adapt its procedures to the type of items purchased which in turn will influence relationships with suppliers. Point 7 The future. Two activities which will be crucial to the future development of organizational buying behaviour will be information technology and production technologies. Point 8 Conclusion. Organizational buying behaviour is a very complex area, however, an understanding of the key factors are fundamental to marketing strategy and thus an organizations ability to compete effectively in the market place. Q.4 Explain the different marketing philosophies and its approach. Ans. Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others. According to the American Marketing Association, Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goods There are six competing philosophies under which organizations conduct marketing activities the production concept, product concept, selling concept, marketing concept, customer concept; and societal concept. 1) The Production Concept: The production concept is one of the oldest concepts in business. The production concept holds that consumers will prefer products that are widely available and inexpensive. Managers of production-

oriented businesses concentrate on achieving high production efficiency, low costs and mass distribution. They assume that consumers are primarily interested in products availability and low prices. This philosophy makes sense in developing countries, where consumers are more interested in obtaining the product than its features. It is also used when a company wants to expand the market. 2. The product Concept Product concept holds that consumer will favour these products that offer the most quality, performance and innovative features. Managers in these organizations focus on making superior products and improving them over time. They assume that buyers admire well-made products and can evaluate quality and performance product oriented companies often trust that their engineers can design exceptional products. They get little or no customer input, and very often they will not even examine competitors products. 3. The Selling Concept: The selling concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organizations products. The organization most, therefore, undertakes an aggressive selling and promotion effort. This concept assumes that consumers typically show buying inertia or resistance and must be coaxed into buying. It also assumes that the company has a whole battery of effective selling and promotion tools to stimulate more buying. The selling concept is epitomized by the thinking that The purpose of marketing is to sell more stuff to more people for more money in order to make more profit Most firms practice the selling concept when they have over capacity. Their aim is to sell what they make rather then make what market wants. 4. The Marketing Concept: The marketing concepts hold that the key to achieving its organizational goals consists of the company being more effective then competitors in creating, delivering and communicating superior customer value to its chosen target markets. The marketing concept rests on four pillars: target market, customer needs, integrated marketing and profitability. There is a contrast between selling and marketing concepts: Selling focuses on the needs of the seller; marketing on the needs of the buyer. Selling is preoccupied with the sellers need to convert his product into cash; marketing with the ideas of satisfying the needs of the customers by means of the product and the whole cluster of things associated with creating, delivering and finally consuming it.

5. The customer Concept: Under customer concept, companies shape separate offers, services and messages to individual customers. These companies collect information on each customers past transactions, demographics, psychographics and media and distribution preferences. They hope to achieve profitable growth through capturing a larger share of each customers expenditures by building high customer loyalty and focusing on customer lifetime value. The ability of a company to deal with customers are at a time become practical as a result of advances in factory customization, computers, the internet and database marketing software. 6. The Societal Marketing Concept: The societal marketing concept holds that the organizations goal is to determine the needs, wants and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumers and the societys well being. The societal marketing concept calls upon marketers to build social and ethical considerations into their marketing practices. They must balance and juggle the often-conflicting criteria of company profits, consumer want satisfaction and public interest. Companies see cause-related marketing as an opportunity to enhance their corporate reputation, raise brand awareness, increase customer loyalty, build sales and increase press coverage. They believe that consumers will increasingly look for signs of good corporate citizenship that go beyond supplying rational and emotional benefits. Q. 5 What are the various stages involved in decision process when a consumer is buying new product? Also, explain the adoption process. Ans. Stages of the Consumer Buying Process Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual purchasing is only one stage of the process. Not all decision processes lead to a purchase. All consumer decisions do not always include all 6 stages, determined by the degree of complexitydiscussed next. The 6 stages are:
1. Problem

Recognition(awareness of need)difference between the desired state and the actual condition. Deficit in assortment of products. HungerFood. Hunger stimulates your need to eat. Can be stimulated by the marketer through product informationdid not

know you were deficient? I.E., see a commercial for a new pair of shoes, stimulates your recognition that you need a new pair of shoes. 2. Information search o Internal search, memory. o External search if you need more information. Friends and relatives (word of mouth). Marketer dominated sources; comparison shopping; public sources etc. A successful information search leaves a buyer with possible alternatives, the evoked set. Hungry, want to go out and eat, evoked set is 1. chinese food indian food burger king klondike kates etc 2. Evaluation of Alternativesneed to establish criteria for evaluation, features the buyer wants or does not want. Rank/weight alternatives or resume search. May decide that you want to eat something spicy, indian gets highest rank etc.
o o o o

If not satisfied with your choice then return to the search phase. Can you think of another restaurant? Look in the yellow pages etc. Information from different sources may be treated differently. Marketers try to influence by framing alternatives.
1. Purchase

decisionChoose buying alternative, includes product, package, store, method of purchase etc. 2. PurchaseMay differ from decision, time lapse between 4 & 5, product availability. 3. Post-Purchase Evaluationoutcome: Satisfaction or Dissatisfaction. Cognitive Dissonance, have you made the right decision. This can be reduced by warranties, after sales communication etc. After eating an indian meal, may think that really you wanted a chinese meal instead. Adoption Process Adoption is an individuals decision to become a regular user of a product. How do potential customers learn about new products, try them, and adopt or reject them? The consumer adoption process is later followed by the consumer loyalty process, which is the concern of the established producer. Years ago, new product marketers used a mass market approach to launch products. This approach had two main drawbacks: It called for heavy marketing

expenditures, and it involved many wasted exposures. These drawbacks led to a second approach, heavy user target marketing. This approach makes sense, provided that heavy users are identifiable and are early adopters. However, even within the heavy user group, many heavy users are loyal to existing brands. New product marketers now aim at consumers who are early adopters. The theory of innovation diffusion and consumer adoption helps marketers identify early adopters. An innovation is any good, service, or idea that is perceived by someone as new. The idea may have a long History, but it is an innovation to the person who sees it as new. Innovations take time to spread through the social system. The Innovation diffusion process is defined as the spread of a new idea from its source of invention or creation to its ultimate users or adopters. The consumer adoption process is the mental process through which an individual passes from first hearing about an innovation to final adoption. Adopters of new products have been observed to move through five stages: 1. Awareness : The consumer becomes aware of the innovation but lacks information about it. 2. Interest : The consumer is stimulated to seek information about the innovation. 3. Evaluation: The consumer considers whether to try the innovation 4. Trial: The consumer tries the innovation to improve his or her estimate of its value. 5. Adoption : The consumer decides to make full and regular use of the innovation. Q. 6 Explain briefly the marketing mix elements for an automobile company giving sufficient examples. Ans. Marketing mix is the combination of elements that you will use to market your product. There are four elements: Product, Place, Price and Promotion. They are called the four Ps of the marketing mix. The objectives of this lesson about marketing mix is to give you: -The tools you need for establishing your detailed marketing plan and forecasting your sales. 1. Challenge 2. Product 3. Place 4. Price 5. Promotion 6. Sales strategy 7. Do it yourself 8. Coaching 1-CHALLENGE

You have gotten a rough idea about the market situation and the possible positioning of your product. Of course, its far to be sufficient. Now, you must write your detailed planning. It means that brainstorming is ended and that you have to go to the specifics in examining and checking all the hypothesis you had made in the preceding chapters. You will use the marketing mix. Some people think that the four Ps are old fashionable and propose a new paradigm: The four Cs! Product becomes customer needs; Place becomes convenience, price is replaced by cost to the user, promotion becomes communication. It looks like a joke but the Cs is more customer-oriented. 2-PRODUCT A good product makes its marketing by itself because it gives benefits to the customer. We can expect that you have right now a clear idea about the benefits your product can offer. Suppose now that the competitors products offer the same benefits, same quality, same price. You have then to differentiate your product with design, features, packaging, services, warranties, return and so on. In general, differentiation is mainly related to: -The design: it can be a decisive advantage but it changes with fads. For example, a fun board must offer a good and fashionable design adapted to young people. -The packaging: It must provides a better appearance and a convenient use. In food business, products often differ only by packaging. -The safety: It does not concern fun board but it matters very much for products used by kids. -The green: A friendly product to environment gets an advantage among some segments. In business to business and for expensive items, the best mean of differentiation are warranties, return policy, maintenance service, time payments and financial and insurance services linked to the product 3-PLACE-DISTRIBUTION A crucial decision in any marketing mix is to correctly identify the distribution channels. The question how to reach the customer must always be in your mind.

-Definition: The place is where you can expect to find your customer and consequently, where the sale is realized. Knowing this place, you have to look for a distribution channel in order to reach your customer. In fact, instead of place it would be better to use the word distribution but the MBA lingo uses place to memorize the 4 Ps of the marketing mix! 4-PRICE Price means the pricing strategy you will use. You have already fixed, as an hypothesis a customer price fitted to your customer profile but you will have now to bargain it with the wholesalers and retailers. Do not be foolish: They know better the market than you and you have to listen their advices. 5-PROMOTION Advertising, public relations and so on are included in promotion and consequently in the 4Ps. Sometimes, packaging becomes a fifth P. As promotion is closely linked to the sales, I will mention here the most common features about the sale strategy. -Definition: The function of promotion is to affect the customer behavior in order to close a sale. Of course, it must be consistent with the buying process described in the consumer analysis. Promotion includes mainly three topics: advertisement, public relations, and sales promotions. -Advertisement: It takes many forms: TV, radio, internet, newspapers, yellow pages, and so on. You have to take notice about three important notions: Reach is the percentage of the target market which is affected by your advertisement. For example, if you advertise on radio you must know how many people belonging to your segment can be affected. Frequency is the number of time a person is exposed to your message. It is said that a person must be exposed seven times to the message before to be aware of it. Reach*frequency gives the gross rating point. You have to evaluate it before any advertisement campaign.

Message: Sometimes, it is called a creative. Anyway, the message must: get attraction, capture interest, create desire and finally require action that is to say close the sale. Down-earth-advice: There are some magical words that you can use in any message: -Your-YouI-Me-MyNow-Today -Fast-Easy-Cool-New-Fun-Updated-Free-Exciting-Astonishing -Success-Love-Money-Comfort-Protection-Freedom-Luck. -Public relations: Public relations are more subtle and rely mainly on your own personality. For example, you can deliver public speeches on subjects such as economics, geoeconomics, futurology to several organizations (civic groups, political groups, fraternal organizations, professional associations) 6-SALES STRATEGY Sales bring in the money. Salesmen are directly exposed to the pressure of finding prospects, making deals, beating competition and bringing money.

Master of Business Administration - MBA Semester 2 MB0046 MARKETING MANAGEMENT Assignment Set- 2

1. What is product mix? What are the strategies involved in product mix and product line? The product mix of a business includes product lines and individual products. A product line is a set of products in the product mix that are closely interrelated either because they serve in a similar way, sold to the similar client groups or have same price range. A product is a unique component in the product line that is different in size, cost, look, or some other attribute. Product choices at these levels are normally of 2 sorts: Those that have variety and range of the product line and those that are modified in the product mix occur over time. Product Mix is the total number of product choices a company offers their customer. If you make muffins, and you offer Blueberry and Cranberry, your product mix has 2 choices. The product mix grows as the number of features on the product grows. A true evaluation of the mix can ONLY be done with a feature/option level analysis. That is because customers buy features and options. The strength of the mix is based on how well the feature choices are capturing sales and market demand. Strategies involved in Product Mix and Product Line When the product is a part of product-mix, there are five kinds of strategies involved:

I. Product Line Pricing In product line pricing, management must decide on the price steps to set between various products in a line. This should take into account the differences in products features, customer evaluations, competitors prices etc. II. Optional-Product Pricing The pricing of optional or accessory products along with the main product. For example, a car buyer may choose to order a CD changer as an optional product. III. Captive-Product Pricing Setting a price for products which must be used along with the main product. For example, HP makes printers and cartridges. It makes very low margins on its printer (the main product) but very high margins on cartridges . IV. By-Product Pricing Setting a price for the by-products. Like in processing meats, petroleum products, chemicals etc. Using by-product pricing, the manufacturer will find a market for the by-products and should accept any price that covers more than the cost of storing and delivering them. For example, at Alba, water is obtained as a by-product while manufacturing aluminum. This water can now be sold to the market. V. Product Bundle Pricing Combining several products and offering the bundle at a reduced price. For example, fast food restaurants bundle a burger, French fires and soft drink at a combo price.

2.

What is a distribution channel? Explain the factors to be

considered while setting up a distribution channel. A path through which goods and services flow in one direction (from vendor to the consumer), and the payments generated by them that flow in the opposite direction (from consumer to the vendor).

A marketing channel can be as short as being direct from the vendor to the consumer or may include several interconnected intermediaries such as wholesalers, distributors, agents, retailers. Each intermediary receives the item at one pricing point and moves it to the next higher pricing point until it reaches the final buyer. Also called channel of distribution or marketing channel. Firm level objectives: It is not enough to simply state a firms goal as maximizing the present value of total profit since this does not differentiate it from other firms and says nothing about how this objective is to be achieved. Instead, a business and marketing plan should suggest how the firm can best put its unique resources to use to maximize stockholder value. A number of resources come into playe.g.,

Distinctive competenciesknowledge of how to manufacture, design, or market certain products or services effectively; Financialpossession of cash or the ability to raise it; Ability and willingness to take risk; The image of the firms brand; People who can develop new products, services, or other offerings and run the needed supports; Running facilities (no amount of money is going to get a new microchip manufacturing plant started tomorrow); and Contacts with suppliers and distributors and others who influence the success of the firm.

Market balance: It is essential that different firms in the same business not attempt to compete on exactly the same variables. If they do, competition will invariably degenerate into pricethere is nothing else that would differentiate the firms. Thus, for example, in the retail food market, there are low price supermarkets such as Food 4 Less that provide few if any services, intermediate level markets like Ralphs, and high-end markets such as Vons

Pavillion that charge high prices and claim to carry superior merchandise and offer exceptional service Risk: In general, firms that attempt riskier venturesand their stockholders expect a higher rate of return. Risks can come in many forms, including immediate loss of profit due to lower sales and long term damage to the brand because of a poor product being released or because of distribution through a channel perceived to carry low quality merchandise. Brand level objectives: Ultimately, brand level profit centers are expected to contribute to the overall maximization of the firms profits. However, when a firm holds several different brands, different marketing and distribution plans may be required for each. Several variables come into play in maximizing value. Profits can be maximized in the short run, or an investment can be made into future earnings. Product profit can be measured in several ways. If you sell a computer that cost $950 to make for $1,000, you are making only a 5% gross profit. However, selling a product that cost $5 to make for $10 will result in a much higher percentage profit, but a much lower absolute margin. A decision that is essential at the brand level is positioning. Options here may range from a high quality, premium product to a lower priced value product. Note here that the same answer will not be appropriate for all firms in the same market since this will result in market imbalancethere should be some firms perceiving each strategy, with others being intermediate. Distribution issues come into play heavily in deciding brand level strategy. In order to secure a more exclusive brand label, for example, it is usually necessary to sacrifice volumeit would do no good, for Mercedes-Benz to create a large number of low priced automobiles. Some firms can be very profitable going for quantity where economies of scale come into play and smaller margins on a large number of units add upe.g., McDonalds survives on much smaller margins than upscale restaurants, but may make larger profits because of volume. Some firms choose to engage in a niching strategy

where they forsake most customers to focus on a small segment where less competition exists (e.g., clothing for very tall people). In order to maintain ones brand image, it may be essential that retailers and other channel members provide certain services, such as warranty repairs, providing information to customers, and carrying a large assortment of accessories. Since not all retailers are willing to provide these services, insisting on them will likely reduce the intensity of distribution given to the product. Product line objectives: Firms make money on the totality of products and services that they sell, and sometimes, profit can be maximized by settling for small margins on some, making up on others. For example, both manufacturers and retailers currently tend to sell inkjet printers at low prices, hoping to make up by selling high margin replacement cartridges. Here again, it may be important for the manufacturer that the retailer carry as much of the product line as possible. Distribution Objectives Objectives: A firms distribution objectives will ultimately be highly related some will enhance each other while others will compete. For example, as we have discussed, more exclusive and higher service distribution will generally entail less intensity and lesser reach. Cost has to be traded off against speed of delivery and intensity (it is much more expensive to have a product available in convenience stores than in supermarkets, for example). Narrow vs. wide reach: The extent to which a firm should seek narrow (exclusive) vs. wide (intense) distribution depends on a number of factors. One issue is the consumers likelihood of switching and willingness to search. For example, most consumers will switch soft drink brands rather than walking from a vending machine to a convenience store several blocks away, so

intensity of distribution is essential here. However, for sewing machines, consumers will expect to travel at least to a department or discount store, and premium brands may have more credibility if they are carried only in full service specialty stores. Retailers involved in a more exclusive distribution arrangement are likely to be more loyali.e., they will tend to Recommend the product to the customer and thus sell large quantities; Carry larger inventories and selections; Provide more services Thus, for example, Compaq in its early history instituted a policy that all computers must be purchased through a dealer. On the surface, Compaq passed up the opportunity to sell large numbers of computers directly to large firms without sharing the profits with dealers. On the other hand, dealers were more likely to recommend Compaq since they knew that consumers would be buying these from dealers. When customers came in asking for IBMs, the dealers were more likely to indicate that if they really wanted those, they could have themBut first, lets show you how you will get much better value with a Compaq. Distribution opportunities: Distribution provides a number of opportunities for the marketer that may normally be associated with other elements of the marketing mix. For example, for a cost, the firm can promote its objective by such activities as in-store demonstrations/samples and special placement (for which the retailer is often paid). Placement is also an opportunity for promotione.g., airlines know that they, as prestige accounts, can get very good deals from soft drink makers who are eager to have their products offered on the airlines. Similarly, it may be useful to give away, or sell at low prices, certain premiums (e.g., T-shirts or cups with the corporate logo.)

Other opportunities involve parallel distribution (e.g., having products sold both through conventional channels and through the Internet or factory outlet stores). Partnerships and joint promotions may involve distribution (e.g., Burger King sells clearly branded Hershey pies). Deciding on a strategy. In view of the need for markets to be balanced, the same distribution strategy is unlikely to be successful for each firm. The question, then, is exactly which strategy should one use? It may not be obvious whether higher margins in a selective distribution setting will compensate for smaller unit sales. Here, various research tools are useful. In focus groups, it is possible to assess what consumers are looking for an which attributes are more important. Scanner data, indicating how frequently various products are purchased and items whose sales correlate with each other may suggest the best placement strategies. It may also, to the extent ethically possible, be useful to observe consumers in the field using products and making purchase decisions. Here, one can observe factors such as (1) how much time is devoted to selecting a product in a given category, (2) how many products are compared, (3) what different kinds of products are compared or are substitutes (e.g., frozen yogurt vs. cookies in a mall), (4) what are complementing products that may cue the purchase of others if placed nearby. Channel membersboth wholesalers and retailersmay have valuable information, but their comments should be viewed with suspicion as they have their own agendas and may distort information.

3.

Discuss

the

communication

development

process

with

examples. Development Communication, has been alternatively defined as a type of marketing and public opinion research that is used specifically to develop effective communication or as the use of communication to promote social

development. Defined as the former, it often includes computerized linguistics analysis of verbatim responses to qualitative survey interviews and may, at times also involved consumer psychological "right brain" (emotional) research techniques. Defined at the latter, it refers to the practice of systematically applying the processes, strategies, and principles of communication to bring about positive social change. As most providers of "communication development" research use proprietary approaches that cannot be elaborated upon without revealing proprietary trade secrets, the remainder of this article describes the latter definition. The practice of development communication can be traced back to efforts undertaken in various parts of the world during the 1940s, but the widespread application of the concept came about because of the problems that arose in the aftermath of World War II . The rise of the communication sciences in the 1950s saw a recognition of the field as an academic discipline, with Daniel Lerner, Wilbur Schramm, and Everett Rogers being field as "the art and science of human communication linked to a society's planned transformation from a state of poverty to one of dynamic socio-economic growth that makes for greater equity and the larger unfolding of individual potential." The theory and practice of development communication continues to evolve today, with different approaches and perspectives unique to the varied development contexts the field has grown in.[3] Development communication is characterized by conceptual flexibility and diversity of communication techniques used to address the problem. Some approaches in the tool kit of the field include: information dissemination and education, behavior change, social marketing, social mobilization, media the earliest influential advocates. The term "Development Communication" was first coined in 1972 by Nora C. Quebral, who defines the

advocacy, communication for social change, and participatory development communication. Examples One of the first examples of development communication was Farm Radio Forums in Canada. From 1941 to 1965 farmers met in groups each week to listen to special radio programs. There were also printed materials and prepared questions to encourage group discussion. At first this was a response to the Great Depression and the need for increased food production in World War II. But the Forums also dealt with social and economic issues. This model of adult education or distance education was later adopted in India and Ghana. Instructional television was used in El Salvador during the 1970s to improve primary education. One of the problems was a lack of trained teachers. Teaching materials were also improved to make them more relevant. More children attended school and graduation rates increased. In this sense the project was a success. However, there were few jobs available in El Salvador for better-educated young people. In the 1970s in Korea the Planned Parenthood Federation had succeed in lowering birth rates and improving life in villages such as Oryu Li. It mainly used interpersonal communication in women's clubs. The success in Oryu Li was not found in all villages. It had the advantage of several factors including a remarkable local woman leader and visits from the provincial governor. A project of social marketing in Bolivia in the 1980s tried to get women in the Cochabamba Valley to use soybean recipes in their cooking. This was an attempt to deal with chronic malnurishment among children. The project used cooking demonstrations, posters and broadcasts on local commercial radio stations. Some people did try soybeans but the outcome of the project is unclear.

In 1999 the U.S. Government and D.C. Comics planned to distribute 600,000 comic books to children affected by the Kosovo War. The comic books are in Albanian and feature Superman and Wonder Woman. The aim is to teach children what to do when they find an unexploded land mine left over from Kosovo's civil war. The comic books instruct children not to touch the antipersonnel mines and not to move, but instead to call an adult for help. In spite of the 1997 Ottawa Treaty which attempts to ban land mines they continue to kill or injure 20,000 civilians each year around the world. Since 2002, Journalists for Human Rights, a Canadian based NGO, has operated long term projects in Ghana, Sierra Leone, Liberia, and the DR Congo. jhr works directly with journalists, providing monthly workshops, student sessions, on the job training, and additional programs on a country by country basis.

4.

Select any mobile handset and mobile company and then

evaluate its positioning strengths or weakness in terms of attributes, benefits, values, brand name and brand equity HTC is one of the leading manufacturers of PDAs and smart phones around the world. It is one of the fastest growing companies in the world and maximizing its market share rapidly. SWOT Analysis SWOT is the tool to see that where organization stands, which areas required improvement, which areas required serious consideration, which would be the source of growth, which things need avoidance and so on. The SWOT of HTC will help to understand the position of HTC in the market.

Strengths It is the leading maker of PDAs smart phones in the world. It is establishing in the world rapidly and attracting more and more customers from all around the world. It has successfully recognized its brand name and has got the good image about the product quality. Its products are considered as reliable products and its gaining more and more success rapidly. The research and development in HTC has been given more importance as it is the way to know what customers want. There is the strong set up of research and development in HTC. The portfolio of HTC is quite wide it has made 42 smart phones product up till now. The customer base of HTC is also very wide as it caters the customer national and international both and the no. of customers also increasing as the time passes. Weaknesses As its weakness, HTC is not a very much recognized brand in the market. Its competitors, which are Nokia, Blackberry, Apple etc. are way much popular and have acquired a big share of market. Another weakness is that, they got a very small range of cell phones models as compared to their competitor, Nokia, which has got a huge variety of smart phones, from cheapest to most expensive one. Opportunities HTC is providing Touch Screen Cell Phones, which are very much in demand these days, most of the people, who use expensive cell phones, goes for Touch Screen. On the other side, Since HTC collaborated with Google and launched their cell phones with Google Android OS install in it, their market also got increased. It is also said that, because of the name of Google, HTC got popularity. Google popularity plays a huge role in the success of HTC. 3G technology has been launched all over the world, and is getting launched in other countries as well. Since HTC cell phones have got 3G technology

support, so it is an opportunity for HTC company that where ever the 3G technology launches, HTCs cell phones demands would raise their. Threats The major threat to HTC, or any other Smartphone company, is a very much popular and highly in-demand brand, Apple iPhone. It is a big hindrance in the demand of HTC cell phones. Apart from that, the financial crunch could also be the threat for the company. Thats because HTC smart phones are expensive and are not affordable for many of the smart phones users. On the other side Nokias smart phones are way cheaper, and are providing the same characteristics, which a Smartphone should have. So lot of people prefers Nokia on HTC.

5.

What is retailing? Explain the functions and different types of

retailing with its key features

Retail consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser.[1] Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. The term "retailer" is also applied where a service

provider services the needs of a large number of individuals, such as a public utility, like electric power. Shops may be on residential streets, shopping streets with few or no houses or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Online retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order, are forms of nonshop retailing. Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase.

A retail business is a store that sells merchandise to the public. Usually, retail businesses have a physical location, but Internet stores have changed that, so a retail business doesn't necessarily have to have a physical location any longer. In addition, coffee shops and gas stations, which don't sell merchandise such as clothing or consumer electronics, are retail businesses too. Retail Stores These include traditional department stores such as Sears and J.C. Penney. Later, discount retail department stores such as Walmart and Target entered the scene, as well as specialty stores such as PetSmart and Office Max. Retailing Without a Store Besides the Internet, there are retail stores without a store, such as sales through TV home shopping and door-to door sellers such as Avon, which were around before the Internet.

Retailing Through Mail Order Retail sales through mail order usually come through catalogs that companies send through the mail. These catalogs include those that sell gift baskets that you send to loved ones for the holidays. Retailing Through the Internet Now that the Internet is here, many businesses run strictly online. Amazon.com is an example of an online retail department store that never had a bricks-and-mortar presence. Retailing Through Vending Machines Another way to retail is through vending machines. This is a very old concept in retailing, considering it dates back more than a century.

6.

a.

What is CRM? What are its objectives?

Customer relationship management (CRM) is a widely-implemented strategy for managing a companys interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processesprincipally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service.[1] Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments Objectives of CRM CRM, the technology, along with human resources of the company, enables the company to analyze the behavior of customers and their value. The main

areas of focus are as the name suggests: customer, relationship , and the management of relationship and the main objectives to implement CRM in the business strategy are:

To simplify marketing and sales process To make call centers more efficient To provide better customer service To discover new customers and increase customer revenue To cross sell products more effectively

The CRM processes should fully support the basic steps of customer life cycle . The basic steps are:

Attracting present and new customers Acquiring new customers Serving the customers Finally, retaining the customers

b.

Write a short note on Brand development.

Though brand development is by no means a new idea, today consumers have more access to information and more choices than ever before. The result is higher expectations, and the brands message must captivate the consumer immediately. Companies seeking to experience long-term success will have to create the most compelling, relevant, and consistent brand experiences for their customers. Remember: You cant escape your brand. Either you make the customer experience, or it gets made without you. Prophet Corp. In order to successfully develop the most effective branding strategy, a firm understanding of what a brand is must first be answered. The development of

a branding strategy must begin with identifying the brands (the business) core values. These are qualities which an organization deems most important. For instance, an organization or business may identify its core values to include: honesty, integrity, excellent communication, and client satisfaction. Though these values are usually never revealed to the public, they are evident in every aspect of the organizations business routine, from customer service, to direct marketing, to website design, to teleconferences, to the treatment of its employees and strategic partners. This conveys a consistent perception to the target audience in every medium of communication that is used. Consideration for these values should not be taken lightly for these values represent the creed for the business and become the cornerstone for developing the brands proposition. And though the brands proposition may change from time to time, the brands core values should never change. An important aspect of brand development is to create a positive emotional attachment to the brand which creates a response in its audience without the audience seeing the product or directly experiencing the service. Again from Bedburys book; think Godiva chocolates for a moment: the very name, perhaps even the logo, conjures up an image of sinful indulgence. Yes, it represents chocolate or ice cream, but it is the feeling and the anticipation of that feeling that the brand conveys most compellingly. Positive emotional bonding comes from a mutually beneficial relationship built on intrigue, trust, understanding, and support. These are qualities that often separate colleagues from friends, and friends from family. Build your brand promise on the basis that your product will deliver positive, relevant, and unique emotional qualities. And of course these qualities will be dictated by the current needs and desires of your target audience.

This may be the most difficult and often overlooked aspect of successful brand development. This is also where a lack of comprehensive research into identifying the target audiences needs and desires can either make or break an attempt at developing a positive emotional attachment between the brand and its audience. If not done effectively, a seemingly insurmountable communication gap will develop between the internal brand perception and the audiences actual perception. Your brand proposition should convey a message that is: 1. Aligned with the brands core values 2. Clear, Engaging, Unique, and Relevant to your target audience 3. Able to incorporate an element of positive emotional attachment that is better than just "good 4. Echoed within your business, internally and externally 5. Consistent across multiple marketing and advertising mediums (print, online presence, etc) 6. Continually reinforced within the organization so that your employees consistently deliver what is promised 7. Echoed by strategic partners 8. Able to adapt to a changing marketplace