Final Mbi Doc

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APRIL 2012 (ROLL NO:36-40)

Q1 (a) If you are a marketing manager of consumer durable electronic company, how

would you develop 4ps for product such as mobiles?(Rahil. Roll no:39)

Ans:-

1.Product: - It is "the thing" that will fulfill the needs of your customer. This is the mostimportant thing in the mix, the physical product or the service that the entity is offering

for sale to the public.

2.Promotion:-It plays a role in the perception the possible target audience may have aboutthe service. There has to be a fit between the promotion and the positioning. Online

marketing makes it cheaper to conduct promotions and reach as many people as

possible.

3.Price: -Price is often considered a proxy for quality. This is the price or amount that thecustomer needs to giveaway in exchange of the product or service one is offering.

Marketing strategy will need to ensure that people will get the perceived value as

greater than the price they will need to giveaway.

4.Place: -It often offers a different side of value to the customer. Services are often chosenfor their place utility. Closer to the customer means higher probability of purchase. It

may be either online or offline, customers should be informed where the products will

be available.

1.product

2.promotion

3.price

4.place


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Q1 (b) Discuss features of consumer goods marketing by giving relevant examples?(rahil. Roll no 39)

Ans:-

a) Consumer goods have large number of buyers and sellers spread over the wholecountry. Every individual has to purchase consumer items for meeting his

regular needs.

b) The market for consumers good is widespread. Every village, taluka, and districtplaces, cities and towns are a market for consumer goods.

c) Consumer goods may be durable or perishable, low priced or high-priced andnecessity or luxury. Fish or bread is a perishable consumer item and it must be

used quickly. Durable consumer items like TV, automobile, mixer, etc. Can be

used over many years.d) The demand for consumer good is always continuous. It is a primary demand and

not a derived demand. The purchases for personal consumption are made in

small quantities due to regular supply and limited purchasing capacity of

consumers.

e) Buyers of consumer goods have limited information about the consumer items.Naturally, they are dependent on the retailers for such information.

f) The market for consumer good is highly competition is among the manufacturersand also among the retailers like departmental stores and supermarkets.

g) Salesmanship as well as sales promotion techniques are used extensively in themarketing of consumer items. Consumers prefer to purchase as per the

information and guidance offered by the salesman. As the products are identical,modifications in the products are frequent. Sales promotion techniques at

consumer level and also at the dealer lever are required.

h) Marketing of consumer good is risky as the demand is elastic. Frequent changes takeplace in the taste and fashion of consumers. The needs and expectations also

change.

OR


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Q1.a. How can services be classified? (Khusboo Shah- Roll no:36)

The classification schemes developed by Christopher Lovelock represent an attempt to

address one of the following aspects:

1. Nature of the service Act:

The service act can be considered in two-ways:

a. Who or what is the direct recipient of the service, and

b. The tangible nature of services.

This creates four classification possibilities shown below:

DIRECT RECIPIENT OF THE SERVICE

People ThingsNature of service

Act

Tangible actions

Intangible assets

Services directed at peoples

bodies:

Health care

Passenger transportation

Beauty saloons

Exercise clinics

Restaurants

Haircutting

Services directed at goods and other

physical possessions:

Freight transportation

Industrial equipment repair and

maintenance

Laundry and dry cleaning

Landscaping/lawn care

Veterinary care

Services directed at peoples

mind:

EducationBroadcasting

Information services

Theatres

Museums

Services directed at intangible

assets:

BankingLegal services

Accounting

Securities

Insurance

Understanding the Nature of the Service Act

2. Type of Relationship that the services organization has with its customers:

In this the prime factors which need consideration are:

a. Whether or not the customer has some type of formal relationship with the provider

of service, and

b. Whether the service itself is provided continuously or in discrete transactions.

These considerations lend themselves to the matrix shown in figure below:


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TYPE OF RELATIONSHIP BETWEEN SERVIE ORGANISATION AND ITS CUSTOMERS

Membership relationship No formal

relationship

Nature of servicedelivery

Continuous delivery

of service

Discrete transactions

InsuranceTelephone subscription

College enrollment

Banking

Trade associations

radio stationpolice protection

lighthouse

public highway

Long-distance phone

calls

Theatre series

subscription

Commuter ticket or pass

Car rental

Mail services

Toll highway

Pay phone

Movie theatre

Public transportation

RestaurantRelationship with customers

3. Scope for customization and judgment in service delivery:

Services are created as they are consumed. There is far more scope for tailoring the service

to meet the needs of the individual customer because the customer is often actually

involved in the production process. As shown in the figure below customization can

proceed along at least two dimensions:

a. The extent to which the characteristics if the service and delivery system tendthemselves to customization.

b. How much judgment customer contact personnel are able to exercise in definingthe nature of services received by individual customers.


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Extent to which characteristics are customized

Extent to which customer

Contact Personnel exerciseJudgment in meeting High Low

Customization and judgment in service delivery

5. Nature of demand and supply for the service:Some service industries face steady demand for their services whereas others encounter

significant fluctuations. The time perishability of service capacity creates a challenge for

the service manager. This is because services cannot be produced and stored as inventory

for future sale. But the extent of demand and supply imbalances varies across service

industries as shown in the figure below:

Individual customer needs

High

Professional services

Surgery

Taxi service

Beautician

Plumber

Education (tutorials)

Gourmet restaurant

Education (large classes)

Preventive health

programs

College food services

Low

Telephone service

Hotel services

Retail bankingFamily restaurant

Public transportation

Routine appliance repair

Movie theatreSpectacular sports

Fast-food restaurant


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Q1.b. IDBI is in service sector. Do you agree? Justify. (Khusboo Shah- Roll no:36)

1. A bank is an institution that deals with money and credit. Bank is a link in the flow offunds from savers to users. They provide means of payment for goods and servicesand provide necessary finance for the development of business and trade. Hence

banks are service organizations selling banking services.

2. Marketing of banking services is concerned with product, place, distribution, pricingand promotion decisions in the changing, socio-economic and business

environment.

3. The marketing activities of bank are concerned with product design strategies, placedecisions, etc.

It has the following main features:

a) Intangibilityb) Inseparabilityc) Variabilityd) Perishability.

4. Bank is one industry where there is no middlemen serving the customer. Howeverwith liberalization and globalization, middlemen are gradually emerging in the bank

industry giving rise to marketing of banking services.

5. IDBI (Industrial Development Bank of India) started as a Development Bank of Indiain july 1964. Thereafter it became a full-service commercial bank in October, 2004.

6. IDBI provides personalized, banking and financial services to its customers. Theseinclude deposits, loans, cards, trade services, etc.

7. It also provides services like insurance, money transfer, investments etc.8. A service is an act or performance offered by one party to another. They are

economic activities that create value and provide benefits for customer at specific

times.

9. The characteristics of services are:a) Intangibility: services are intangible we cannot touch them. They are not

physical objects. The buyer does not have any opportunity to touch, smell, taste

the service.

b) Perishability: services too are perishable like labour. Service has a high degree ofperishability. Here the element of time assumes a significant position. Utilized or

unutilized services are an economic waste.

c) Inseparability: services are generally created or supplied simultaneously. Theyare inseparable. For e.g., the entertainment industry, health experts and other

professionals create and offer their service at the same given time.


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d) Heterogeneity: this character of services makes it difficult to set a standard forany service. The quality of services cannot be standardized. The price paid for a

service may either be too high or too low. Consumers rate these services in

different ways

e) Ownership: in the sale of goods, after the completion of process, the goods aretransferred in the name of the buyer and he becomes the owner of the goods. But

in case of services we do not find this. The users have only an access to services.

They cannot own the services.

10. We can see that the marketing activities of a bank and that of services has similarfeatures. Therefore we can say that banks are a part of the service sector.

Hence it can be said that IDBI is in Service sector.

Name : Darshan Sheth. Roll no:- 38

Q 2 (A)

Develop service marketing mix strategies for a life Insurance company

like Birla Sun Life Company.

Answer :-

Birla Sun Life Company:-

Its a merger between Aditya Birla group and Sun Life Financial of Canada. They have over morethen 75 units all over india

Products Offered:-

Endowment Plan:-This helps the member improve returns by investing a part of their premium money in

bonds and equity

Money Back Plan Whole Life Plan Max New York Life:-Its a multi-business operation, which has interest in Telecom services, Bulk

Pharmaceuticals, health care, Life Insurance and Information Technology

Birla Sun life should develop marketing mix strategies based on these :-


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A service is an act or performance offered by one party to another. Services are special kind of

products. Service marketing is dominated by the 7 Ps of marketing namely:-

1. Product: - It is "the thing" that will fulfil the needs of your customer. This is the most importantthing in the mix, the physical product or the service that the entity is offering for sale to the

public.Eg:- Physical features, Quality Level, Accessories, Packaging etc

1. Price: -Price is often considered a proxy for quality. This is the price or amount that thecustomer needs to giveaway in exchange of the product or service one is offering. Marketing

strategy will need to ensure that people will get the perceived value as greater than the price theywill need to giveaway. Eg:- Discount, Allowance ,Flexibility...etc

2. Place: -It often offers a different side of value to the customer. Services are often chosen fortheir place utility. Closer to the customer means higher probability of purchase. It may be either

online or offline, customers should be informed where the products will be available. Eg:-

Intermediaries, Outlet locations, Transportation, Storageetc

3.

Promotion:-It plays a role in the perception the possible target audience may have about theservice. There has to be a fit between the promotion and the positioning. Online marketing makes

it cheaper to conduct promotions and reach as many people as possible. Eg:- Personnel selling,

Advertising, Sales promotion, Publicityetc

4. People: -They are crucial in service industry. It includes employees, management, customerservice provided etc. Eg:- motivation and training to employees and education to Customer

5. Process:-They are important to deliver a quality service. Services being intangible, processesbecome all the more crucial to ensure that the standards are met. Eg:- a process could be simpleor complex

6. Physical Evidence:-It affects the customer satisfaction. Often services being intangible,customers depend on other cues to judge the offering. This is where physical evidence plays a

part. Eg:- Facility design, Equipment, Signage, Employee dress

OR


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Q 2 (B)

Explain how Socio-cultural, Personal and Psychological factors affect

consumer buying behaviour

Buying Behaviour is the decision processes and acts of people involved in buying and using products. Alarge number of factors influence the consumer buying behaviour. Kotler and Armstrong classify these as:

Cultural Factors:

Consumer behavior is deeply influenced by cultural factors such as: buyer culture, subculture, and socialclass.

1. CultureBasically, culture is the part of every society and is the important cause of person wants and behavior.The influence of culture on buying behavior varies from country to country therefore marketers have to bevery careful in analyzing the culture of different groups, regions or even countries.

2. SubcultureEach culture contains different subcultures such as religions, nationalities, geographic regions, racialgroups etc. Marketers can use these groups by segmenting the market into various small portions. Forexample marketers can design products according to the needs of a particular geographic group.

3. Social ClassEvery society possesses some form of social class which is important to the marketers because the buying

behaviour of people in a given social class is similar. In this way marketing activities could be tailoredaccording to different social classes. Here we should note that social class is not only determined byincome but there are various other factors as well such as: wealth, education, occupation etc.

Social Factors:

Social factors also impact the buying behavior of consumers. The important social factors are: referencegroups, family, role and status.

1. Reference GroupsReference groups have potential in forming a person attitude or behavior. The impact of reference groupsvaries across products and brands. For example if the product is visible such as dress, shoes, car etc thenthe influence of reference groups will be high. Reference groups also include opinion leader (a personwho influences other because of his special skill, knowledge or other characteristics).

2. Family


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Buyer behavior is strongly influenced by the member of a family. Therefore marketers are trying to findthe roles and influence of the husband, wife and children. If the buying decision of a particular product is

influenced by wife then the marketers will try to target the women in their advertisement. Here we shouldnote that buying roles change with change in consumer lifestyles

3. Roles and StatusEach person possesses different roles and status in the society depending upon the groups, clubs, family,organization etc. to which he belongs. For example a woman is working in an organization as financemanager. Now she is playing two roles, one of finance manager and other of mother. Therefore her

buying decisions will be influenced by her role and status.

Personal Factors:

Personal factors can also affect the consumer behaviour. Some of the important personal factors thatinfluence the buying behaviour are: lifestyle, economic situation, occupation, age, personality and self

concept.

1. Age and life-cycle stageAge and life-cycle have potential impact on the consumer buying behavior. It is obvious that theconsumers change the purchase of goods and services with the passage of time. Family life-cycle consists

of different stages such young singles, married couples, unmarried couples etc which help marketers todevelop appropriate products for each stage.

2. OccupationThe occupation of a person has significant impact on his buying behavior. For example a marketingmanager of an organization will try to purchase business suits, whereas a low level worker in the sameorganization will purchase rugged work clothes.

3. Economic SituationConsumer economic situation has great influence on his buying behavior. If the income and savings of a

customer is high then he will purchase more expensive products. On the other hand, a person with lowincome and savings will purchase inexpensive products.

4. LifestyleLifestyle of customers is another import factor affecting the consumer buying behavior. Lifestyle refers to

the way a person lives in a society and is expressed by the things in his/her surroundings. It is determinedby customer interests, opinions, activities, etc and shapes his whole pattern of acting and interacting in theworld.

5. PersonalityPersonality changes from person to person, time to time and place to place. Therefore it can greatlyinfluence the buying behavior of customers. Actually, Personality is not what one wears; rather it is thetotality of behavior of a man in different circumstances. It has different characteristics such as:dominance, aggressiveness, self-confidence etc which can be useful to determine the consumer behaviorfor particular product or service.

Psychological Factors:

There are four important psychological factors affecting the consumer buying behavior. These are:perception, motivation, learning, beliefs and attitudes.

1. MotivationThe level of motivation also affects the buying behaviour of customers. Every person has different needs

such as physiological needs, biological needs, social needs etc. The nature of the needs is that, some ofthem are most pressing while others are least pressing. Therefore a need becomes a motive when it ismore pressing to direct the person to seek satisfaction.

2. Perception


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Selecting, organizing and interpreting information in a way to produce a meaningful experience of theworld is called perception. There are three different perceptual processes which are selective attention,

selective distortion and selective retention. In case of selective attention, marketers try to attract thecustomer attention. Whereas, in case of selective distortion, customers try to interpret the information in away that will support what the customers already believe. Similarly, in case of selective retention,marketers try to retain information that supports their beliefs.

3. Beliefs and AttitudesCustomer possesses specific belief and attitude towards various products. Since such beliefs and attitudesmake up brand image and affect consumer buying behaviour therefore marketers are interested in them.Marketers can change the beliefs and attitudes of customers by launching special campaigns in thisregard.

Q4: SHORTNOTES (Sneha-Roll no-40)

1. DISTINGUISH BETWEEN MARKETING AND SELLING


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Q2. Consumer buying Behaviour process

MARKETING SELLING

1) Marketing means all customers

wants and satisfying efforts

concerning with planning, pricing,

promoting product and services.

Selling is the transfer of the ownership

and possession of the goods to the

purchases.

2) Emphasis on consumer needs and

wants.

Emphasis is on the product.

3) It is consumer oriented. It is production oriented.

4) Company first determines

customers needs and wants and

then decides out how to deliver a

product to satisfy these wants.

Company manufactures the product

first.

5) Marketing uses innovation intechnology.

Selling uses existing technology andfocuses on reducing costs.

6) Planning is long-run-oriented in

todays products and terms of new

products, tomorrows markets and

future growth.

Planning is short-run-oriented in terms

of todays product and markets.

7) Marketing is a pull strategy.

Heterogeneous

Selling is a push strategy.

Homogenous

8) Scope is to identify customer need

(research), creating products to meetthose needs, promotions to advertise

said products.

Once a product has been created for a

customer need, persuade the customerto purchase the product to fulfil his

needs.

9) Marketing views the customer as the

very purpose of the business.

Selling views the customer as the last

link in the business process.

10) The consumer demand determines

the price, price determines the cost.

The cost of production and

distribution determines the price.

11) Marketing is one to many processes. Selling is usually one on one process.

12) The main goal is to find the right

products for the customers.

The main goal is to find the right

customers for the products.

13) Marketing shows how to reach tothe consumers.

Selling is the ultimate result ofmarketing.


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Commercial sources - Advertisements, sales people (in Tims case it was the store

manager), Packaging of a particular product in many cases prompt individuals to buy the

same, Displays (Props, Mannequins etc)

Public sources - Newspaper, Radio, Magazine

Experiential sources - Individuals own experience, prior handling of a particular

product (Tim would definitely purchase a Dell laptop again if he had already used one)

Step 3EVALUATION OF ALTERNATIVESThe next step is to evaluate the various alternativesavailable in the market. An

individual after gathering relevant information tries to choose the best option

available as per his need, taste and pocket.

Step 4PURCHASE OF PRODUCT/SERVICEAfter going through all the above stages, customer finally purchases the

product.

Step 5POST PURCHASE EVALUATIONThe purchase of the product is followed by post purchase evaluation. Post

purchase evaluation refers to a customers analysis whether the product was

useful to him or not, whether the product fulfilled his need or not?

Q3. Factors Affecting Marketing Communication Mix

The specifc mix of advertising, personal selling, sales promotion, event and

experience public relation and direct selling is called marketing communication mix

Characteristics of Marketing communication mix Advertising.

Eg: Print, Broadcast, Outdoor

Sales promotion.Eg: Premium, Discounts

Public relations and publicity. Experiences. Eg: Nestomalt Personal selling. Eg: Sales presentation, Trade shows


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Direct marketing. Eg: Catalogues, telemarketing, Internet

Communications mix allocations vary between consumer and business

markets. Consumer marketers tend to spend comparatively more on sales

promotion and advertising; business marketers tend to spend comparatively

more on personal selling.

Communication mix tools vary cost effectiveness at different stages of buyers

readiness. There are 5 stages in the buyers readiness.

Awareness Comprehension Conviction Order

Reorder

Communication mix tools also vary in cost effectiveness at different stages of

the product life cycle. There are 4 stages in the product life cycle.

Introduction stage Growth stage Maturity stage

Cost

effectiveness

Stages of Buyers Readiness

Advertisin

g &

Publicity


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Q5. The Role of Place is Service Sector.

Introduction

While place marketing is a relatively new field of academic research, its origins stem

from social and non-profit marketing (Kotler & Levy, 1969; Kotler & Zaltman, 1971),

and it has been practiced for many centuries for the development and promotion of

places, cities, and nations (Kavaratzis & Ashworth, 2008). The field progressed from

the initial place selling approach to the use of integrated marketing and branding

techniques as part of a strategic approach focused on the delivery of a places

amenities to various target markets for future economic growth and image

improvement, amongst other benefits (Ashworth & Voogd, 1990, 1994; Kotler et al.,

1993, 1999; van den Berg & Braun, 1999; Rainisto, 2003; Gertner, 2011).

However, the perplexity of marketing places and the interdisciplinary nature of the

field have led to confusion among academics and practitioners. The biggest issues

regarding place marketing is the lack of a robust theory and the confusion that

academics may cause as a result of their different research backgrounds (Hanna &

Rowley, 2008; Skinner, 2008). Therefore, interest in why and how place marketing

might be used for improving the competitive image of deprived places can help to the

development of an empirical framework, which can make a significant step towards

theory making (Niedomysl & Jonasson, 2012).

Definitions

Due to the interdisciplinary character of place marketing, a number of definitions


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have been developed over the years. Often, the term is used synonymous with the

concepts of place promotion and place branding, making the attempt to distinguish

the concept of place marketing challenging (Berglund & Olsson, 2010).

Whereas there are plenty definitions of place marketing, few of them are paying

attention to the marketing side of the concept. Usually place marketing is defined as

a management process (Kotler et al. 1999; Rainisto, 2003) which encompasses the

attempts of place differentiation for competitive advantage over other places.

Differentiation occurs with the collaboration of all actors and the enclosure of local

activities to meet the demands of targeted consumers (Ashworth & Voogd, 1994).

However, communication theory seems to help better to the understanding of what

place marketing is, as it includes image exposure of a places economic, social,

political, and cultural aspects to certain target groups (Kavaratzis & Ashworth, 2008;

Kaplan et al., 2010). Niedomysl and Jonasson (2012) incorporated elements of place

marketing and place branding in their definition, which can be seen as a blend of the

two concepts, with place branding as a part of the holistic place marketing practice.

Therefore, place marketing can be defined as the measures taken, by actors

appointed to govern a place, to improve the competitive image of that place with the

explicit aim of attracting capital from elsewhere

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