COURSE CODE – 2040316(14.3)fnPG DEGREE EXAMINATION - MAR 2013MBA / MBA (FINANCE / HRM / MM/ HM / SYS)MAJOR III MARKETING MANAGEMENT AND MANAGERIALECONOMICS16. Under the marketing concept, the firm must find a way to discover unfulfilled customer needs and bring to market products that satisfy those needs. The process of doing so can be modeled in a sequence of steps: the situation is analyzed to identify opportunities, the strategy is formulated for a value proposition, tactical decisions are made, the plan is implemented and the results are monitored.

The Marketing Process

Situation Analysis

|V

Marketing Strategy

|V

Marketing Mix Decisions

|V

Implementation & Control

I. Situation AnalysisA thorough analysis of the situation in which the firm finds itself serves as the basis for identifying opportunities to satisfy unfulfilled customer needs. In addition to identifying the customer needs, the firm must understand its own capabilities and the environment in which it is operating.The situation analysis thus can be viewed in terms an analysis of the external environment and an internal analysis of the firm itself. The external environment can be described in terms of macro-environmental factors that broadly affect many firms, and micro-environmental factors closely related to the specific situation of the firm.The situation analysis should include past, present, and future aspects. It should include a history outlining how the situation evolved to its present state, and an analysis of trends in order to forecast where it is going. Good forecasting can reduce the chance of spending a year bringing a product to market only to find that the need no longer exists.If the situation analysis reveals gaps between what consumers want and what currently is offered to them, then there may be opportunities to introduce products to better satisfy those consumers. Hence, the situation analysis should yield a summary of problems and opportunities. From this summary, the firm can match its own capabilities with the opportunities in order to satisfy customer needs better than the competition.There are several frameworks that can be used to add structure to the situation analysis:

5 C Analysis - company, customers, competitors, collaborators, climate. Company represents the internal situation; the other four cover aspects of the external situation

PEST analysis - for macro-environmental political, economic, societal, and technological factors. A PEST analysis can be used as the "climate" portion of the 5 C framework.

SWOT analysis - strengths, weaknesses, opportunities, and threats - for the internal and external situation. A SWOT analysis can be used to condense the situation analysis into a listing of the most relevant problems and opportunities and to assess how well the firm is equipped to deal with them.

II. Marketing StrategyOnce the best opportunity to satisfy unfulfilled customer needs is identified, a strategic plan for pursuing the opportunity can be developed. Market research will provide specific market information that will permit the firm to select the target market segment and optimally position the offering within that segment. The result is a value proposition to the target market. The marketing strategy then involves:

Segmentation Targeting (target market selection) Positioning the product within the target market Value proposition to the target market

III. Marketing Mix DecisionsDetailed tactical decisions then are made for the controllable parameters of the marketing mix. The action items include:

Product development - specifying, designing, and producing the first units of the product. Pricing decisions Distribution contracts Promotional campaign development

IV. Implementation and ControlAt this point in the process, the marketing plan has been developed and the product has been launched. Given that few environments are static, the results of the marketing effort should be monitored closely. As the market changes, the marketing mix can be adjusted to accomodate the changes. Often, small changes in consumer wants can addressed by changing the advertising message. As the changes become more significant, a product redesign or an entirely new product may be needed. The marketing process does not end with implementation - continual monitoring and adaptation is needed to fulfill customer needs consistently over the long-term.

17.

11.aThis article discusses the history of marketing as a recognized discipline, along with concomitant changes in marketing theory and practice. (Marketing comprises all activities involved in the transfer of goods from the producer or seller to oh the consumer or buyer, including advertising, shipping, storing, and selling. Two different fields of study emerged:

1. the history of marketing thought, giving theoretical accounts2. marketing history, focusing on the history of marketing practice

This division parallels the distinction between the history of economic thought and economic history.[1]

Practitioners of the history of marketing thought note that both practitioners and academics know relatively little about the field.[citation

needed] But history has significance for academics because it helps to define the baselines upon which they can recognize change and evolve marketing theory.[2] On the other hand, proponents of marketing history argue that one cannot fully compare the marketing field with economics and hence suggest the impracticality of divorcing theory and practice.[citation needed] First, marketing scholars seldom engage in the practice of marketing as much as economists engage in the development and execution of public policies. Second, business people innovate in the marketing field, and the history of marketing will remain incomplete if one dissociates academia from practitioners.[1]

The following sections discuss both approaches to the history of marketing, closing with a debate about the standard chronology of marketing, a widely-known hypothesis about the history of marketing, but one that historians in the marketing field have challenged.12.a the eight stages

1. Idea Generation is often called the "fuzzy front end" of the NPD process[1]. o Ideas for new products can be obtained from basic research using a SWOT analysis (Strengths, Weaknesses,

Opportunities & Threats). Market and consumer trends, company's R&D department, competitors, focus groups, employees, salespeople, corporate spies, trade shows, or ethnographic discovery methods (searching for user patterns and habits) may also be used to get an insight into new product lines or product features.

o Lots of ideas are generated about the new product. Out of these ideas many are implemented. The ideas are generated in many forms. Many reasons are responsible for generation of an idea.

o Idea Generation or Brainstorming of new product, service, or store concepts - idea generation techniques can begin when you have done your OPPORTUNITY ANALYSIS to support your ideas in the Idea Screening Phase (shown in the next development step).

2. Idea Screening o The object is to eliminate unsound concepts prior to devoting resources to them.o The screeners should ask several questions:

Will the customer in the target market benefit from the product?

What is the size and growth forecasts of the market segment / target market? What is the current or expected competitive pressure for the product idea? What are the industry sales and market trends the product idea is based on? Is it technically feasible to manufacture the product? Will the product be profitable when manufactured and delivered to the customer at the target price?

3. Concept Development and Testing o Develop the marketing and engineering details

Investigate intellectual property issues and search patent databases Who is the target market and who is the decision maker in the purchasing process? What product features must the product incorporate? What benefits will the product provide? How will consumers react to the product? How will the product be produced most cost effectively? Prove feasibility through virtual computer aided rendering and rapid prototyping What will it cost to produce it?

o Testing the Concept by asking a number of prospective customers what they think of the idea - usually via Choice Modelling.

4. Business Analysis o Estimate likely selling price based upon competition and customer feedbacko Estimate sales volume based upon size of market and such tools as the Fourt-Woodlock equationo Estimate profitability and break-even point

5. Beta Testing and Market Testing o Produce a physical prototype or mock-upo Test the product (and its packaging) in typical usage situationso Conduct focus group customer interviews or introduce at trade showo Make adjustments where necessaryo Produce an initial run of the product and sell it in a test market area to determine customer acceptance

6. Technical Implementation o New program initiationo Finalize Quality management systemo Resource estimationo Requirement publicationo Publish technical communications such as data sheetso Engineering operations planningo Department schedulingo Supplier collaborationo Logistics plano Resource plan publicationo Program review and monitoringo Contingencies - what-if planning

7. Commercialization (often considered post-NPD) o Launch the producto Produce and place advertisements and other promotionso Fill the distribution pipeline with producto Critical path analysis is most useful at this stage

8. New Product Pricing o Impact of new product on the entire product portfolioo Value Analysis (internal & external)o Competition and alternative competitive technologieso Differing value segments (price, value and need)o Product Costs (fixed & variable)o Forecast of unit volumes, revenue, and profit

13.bThe Selling Process

The 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.

Step OneProspecting - the first step in the selling processThe 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.Qualifying a prospect: A lead is a name on a list. It only becomes a prospect if it is determined that the person or company can benefit from the service or product offered. A qualified prospect has a need, can benefit from the product and has the authority to make the decision.

Step TwoThe Pre-approachThis 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.

Step ThreeThe ApproachThe 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).

Step FourThe Sales PresentationAfter 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 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 FiveThe Trial CloseThe 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 SixHandling ObjectionsObjections 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.

Step SevenClosing the SaleThis is the last part of the presentation. Many salespeople fear the closing of a sale. Closing a sale is only the confirmation of an understanding. Fear will disappear if the salesperson truly believes that the prospect will enjoy benefits after the purchase of the product.

Step EightThe Follow-upThe sale does not complete the selling process. Follow-up activities are very important and are useful for the establishment of long-term business relationships. It is important to check if the products have been received in good condition, to establish the customer is satisfied etc.

14.b Economic planning refers to any directing or planning of economic activity outside the mechanisms of the market. Planning is an economic mechanism for resource allocation and decision-making held in contrast with the market mechanism, where planning refers to a direct allocation of resources.[1] Most economies are mixed economies, incorporating elements of markets and planning for distributing inputs and outputs. The level of centralization of decision-making in the planning process ultimately depends on the type of planning mechanism employed; as such planning need not be centralized and may be based on either centralized or decentralized decision-making.[2]

Economic planning can apply to production, investment, distribution or all three of these functions. Planning may take the form of directive planning or indicative planning. An economy primarily based on central planning is a planned economy; in a planned economy the allocation of resources is determined by a comprehensive plan of production which specifies output requirements.[3]

A distinction can be made between physical planning (as in pure socialism), meaning economic coordination and planning conducted in terms if disaggregated physical units or by a common natural unit, and between financial planning

15.b Keynes argued that the solution to the Great Depression was to stimulate the economy ("inducement to invest") through some combination of two approaches:

1. A reduction in interest rates (monetary policy), and2. Government investment in infrastructure (fiscal policy).

By reducing the interest rate at which the central bank lends money to commercial banks, the government sends a signal to commercial banks that they should do the same for their customers.Investment by government in infrastructure injects income into the economy by creating business opportunity, employment and demand and reversing the effects of the aforementioned imbalance.[7] Governments source the funding for this expenditure by borrowing funds from the economy through the issue of government bonds, and because government spending exceeds the amount of tax income that the government receives, this creates a fiscal deficit.A central conclusion of Keynesian economics is that, in some situations, no strong automatic mechanism moves output and employment towards full employment levels. This conclusion conflicts with economic approaches that assume a strong general tendency towards equilibrium. In the 'neoclassical synthesis', which combines Keynesian macro concepts with a micro foundation, the conditions of general equilibrium allow for price adjustment to eventually achieve this goal. More broadly, Keynes saw his theory as a general theory, in which utilization of resources could be high or low, whereas previous economics focused on the particular case of full utilization.The new classical macroeconomics movement, which began in the late 1960s and early 1970s, criticized Keynesian theories, while New Keynesian economics has sought to base Keynes's ideas on more rigorous theoretical foundations.Some interpretations of Keynes have emphasized his stress on the international coordination of Keynesian policies, the need for international economic institutions, and the ways in which economic forces could lead to war or could promote peace

Part:a1. Marketing is the process of communicating the value of a product or service to customers.2. Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs3. Marketing myopia is a term used in marketing as well as the title of an important marketing paper written by Theodore Levitt.

4. A target market is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise towards5. Packaging is the science, art, and technology of enclosing or protecting products for distribution, storage, sale, and use6. A niche market is the subset of the market on which a specific product is focusing. So the market niche defines the specific product features aimed at satisfying7. The process involved in creating a unique name and image for a product in the consumers' mind, mainly through advertising campaigns with a consistent theme. Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers.9. In economics, the bottom of the pyramid is the largest, but poorest socio-economic group.