ROUNAK KHANDELWAL 1408019475

ASSINGMNETDRIVESPRING DRIVE 2015

PROGRAMMBA/ MBADS/ MBAFLEX/ MBAHCSN3/ PGDBAN2

SEMESTERII

SUBJECT CODE &NAMEMB0046 MARKETING MANAGEMENT

BK IDB1629

CREDIT & MARKS4Credits, 60 marks

1) A marketing mix can be referred to as a planned mix of the controllable elements of a products marketing plan, commonly termed as 4Ps: Product, Price, Place and promotion. Considering the increasing role of services in the economy and customer orientation, additional 3 Ps such as People, Process and physical evidence were added to the marketing mix. These Ps are very important while generating optimum income for the company since it will be adjusted until the right combination that serves the needs of the customers. Define the term marketing mix. Describe the 7ps of marketing mix.

Answer: Marketing Mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market.

7Ps of Marketing Mix

a) Price: Refers to the value that is put for a product. It depends on costs of production, segment targeted, ability of the market to pay, supply-demand and a host of other direct and indirect factors. There can be several types of pricing strategies, each tied in with an overall business plan. Pricing can also be used a demarcation, to differentiate and enhance the image of a product.

b) Product: Refers to the item actually being sold. The product must deliver a minimum level of performance otherwise even the best work on the other elements of the marketing mix won't do any good.

c) Place: Refers to the point of sale. In every industry, catching the eye of the consumer and making it easy for her to buy it is the main aim of a good distribution or 'place' strategy. Retailers pay a premium for the right location. In fact, the mantra of a successful retail business is 'location'.

d) Promotion: Refers to all the activities undertaken to make the product or service known to the user and trade. This can include advertising, word of mouth, press reports, incentives, commissions and awards to the trade. It can also include consumer schemes, direct marketing, contests and prizes.

e) Physical evidence: The evidence which shows that a service was performed, such as the delivery packaging for the item delivered by a delivery service, or a scar left by a surgeon. This reminds or reassures the consumer that the service took place, positively or negatively.

f) People: The employees that execute the service, chiefly concerning the manner and skill in which they do so.

g) Process: The processes and systems within the organization that affect the execution of its service, such as job queuing or query handling.

2) A brand is a composite set of beliefs and associations in the mind of consumers. In brand Development, as a part of branding strategy decision, the brand manager can decide to create new brand elements for the new products, apply some of the existing brand elements to the new product, or use a combination of existing and new brand elements to the existing and new products. Define Brand. Explain the advantages of brand and the different branding strategies used by the companies for their range of products.

Answer: Brand: A brand is a product, service, or concept that is publicly distinguished from other products, services, or concepts so that it can be easily communicated and usually marketed. A brand name is the name of the distinctive product, service, or concept. Branding is the process of creating and disseminating the brand name. Branding can be applied to the entire corporate identity as well as to individual product and service names.

Advantages of Branda) Enhances product recognition.b) Helps building brand loyalty.c) Helps with product positioning.d) Aids in Introduction of new product.e) Builds brand equity.Branding strategies adopted by companies: A branding strategy helps establish a product within the market and to build a brand that will grow and mature in a saturated marketplace. Making smart branding decisions up front is crucial since a company may have to live with the decision for a long time. The following are commonly used branding strategies:1. Company Name:In this case a strong brand name (or company name) is made the vehicle for a range of products (for example, Mercedes Benz or Black & Decker) or a range of subsidiary brands (such as Cadbury Dairy Milk or Cadbury Fingers in the United States).

2. Individual Branding:Each brand has a separate name, putting it into a de facto competition against other brands from the same company (for example, Kool-Aid and Tang are both owned by Kraft Foods).

3. Attitude Branding and Iconic Brands:This is the choice to represent a larger feeling, which is not necessarily connected with the product or consumption of the product at all. Companies that use attitude branding include: Nike, Starbucks, The Body Shop, and Apple, Inc. Iconic brands are defined as having aspects that contribute to the consumer's self-expression and personal identity. Brands whose value to consumers comes primarily from having identity value are said to be "identity brands. Some brands have such a strong identity that they become "iconic brands" such as Apple, Nike, and Harley Davidson.

4. "No-brand" Branding:Recently a number of companies have successfully pursued "no-brand" strategies by creating packaging that imitates generic Brand simplicity. "No brand" branding may be construed as a type of branding as the product is made conspicuous through the absence of a brand name.

5. Derived Brands:Some suppliers of key components may wish to guarantee its own position by promoting that component as a brand in its own right. For example, Intel, positions itself in the PC market with the slogan (and sticker) "Intel Inside.

3) Describe the international market entry strategies in brief.

Answer: Joint venture: A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it. However, the venture is its own entity, separate and apart from the participants' other business interests. Strategic alliances: An arrangement between two companies that have decided to share resources to undertake a specific, mutually beneficial project. A strategic alliance is less involved and less permanent than a joint venture, in which two companies typically pool resources to create a separate business entity. In a strategic alliance, each company maintains its autonomy while gaining a new opportunity. A strategic alliance could help a company develop a more effective process, expand into a new market or develop an advantage over a competitor, among other possibilities. Direct Investment: The purchase or acquisition of a controlling interest in a foreign business by means other than the outright purchase of share. In domestic finance, the purchase or acquisition of a controlling interest or a smaller interest that would still permit active control of the company.The purpose of a direct investmentis to gain enough control of a company to exercise control over future decisions. This can be accomplished by gaining a majority interest or a significant minority interest. Direct investments can involve management participation, joint-venture or the sharing of technology and skills. Contract manufacturing: Contractmanufacturingis a process that establishes a working agreement between two companies. As part of the agreement, one company custom produces parts or other materials on behalf of their client. In most cases, the manufacturer also handles the ordering and shipment processes for the client. As a result, the client does not have to maintainmanufacturingfacilities, purchase raw materials, or hire labour in order to produce thefinished goods. Franchising: Franchisingis the practice of the right to use a firm'sbusiness modeland brand for a prescribed period of time. For the franchiser, the franchise is an alternative to building "chain stores" to distribute goods that avoids the investments and liability of a chain. The franchisor's success depends on the success of the franchisees. The franchisee is said to have a greater incentive than a direct employee because he or she has a direct stake in the business. Essentially, and in terms of distribution, the franchisor is a supplier who allows an operator, or a franchisee, to use the supplier's trademark and distribute the supplier's goods. In return, the operator pays the supplier a fee.

4) Personal selling focuses in on personal or one to one selling. It involves an individual salesman or a sales team establishing and building a profitable relationship with customers over a period of time through a series of steps. What is personal selling? Explain the steps in the personal selling process which helps in successful sales.

Answer: Personal selling: Personal sellingis part of the overall promotional mix, which also contains advertising, sales promotion and public relations.Personal sellingiswhen a personal paid-for communication occurs between two people in an attempt to influence each other.

Steps in the personal selling process:-1) Pre-sale preparation: The first step in personal selling is the selection, training and motivation of salespersons. The salespersons must be fully familiar with the product, the firm, the market and the selling techniques. They should be well-informed about the competitor's products and the degree of competition. They should also be acquainted with the motives and behaviour of prospective buyers.2) Prospecting: It refers to locating or searching out prospective buyers who have the need for the product and the ability to buy it. Potential customers may be spotted through observation, enquiry and analysis of records of existing customers. Social contacts,businessassociations and dealers can be helpful in the identification of potential buyers.3) Approaching: Before calling on the prospects, the salesperson should fully learn their number, needs, habits, spending capacity, motives, etc. Such knowledge helps in selecting the right sales appeal. After such learning, the salesperson should approach the customer in a polite and dignified way. He should introduce himself and his product to the customer. He should greet the customer with a smile and make him feel at home. He should introduce himself and his product to the customer. In case he is busy with some other customer, he should assure the new customer that he would be attended very soon. The salesperson has to be very careful in his approach as the first impression is the last impression.4) Presentation: For this purpose, the salesperson has to present the product and describe its features in brief. The presentation should be matched with the attitude of the prospect so that the salesman can continuously hold his attention and create interest in the product.5) Demonstration: In order to maintain customer's interest and to arouse his desire, the sales-person must display and demonstrate the product. He has to explain the utility and distinctive qualities of the product so that the prospect realizes the need for the product to satisfy his wants. He should not be in a hurry to impress the customer and should avoid controversy. He may suggest uses of the product and may create an impulsive urge to possess the article by appealing to human instincts.6) Handling objections: A sale cannot be achieved simply by creating interest and desire. Every customer wants to make the best bargain for the money he is spending. Presentation and demonstration of the product are likely to create doubts and questions in his mind. The salesman should clear all doubts and objections without entering into a controversy and without losing his temper. Testimonials, money-back guarantee, tact and patience are popular means of winning over s hesitant buyers. The salesman should convince the customer that he is making the best use of his money by purchasing the product. For this purpose, the salesman should prove the superiority of his product over the competitive products. He should not lose patience if the customer puts too many queries and takes time in arriving at any decision. If the customer does not buy even after meeting rejections, the salesman should let him go without showing temper. He must believe in the universal rule that the customer is always right.7) Closing the sale: This is the climax or critical point in the personal selling process. Completing the sale seems to be an easy task but inappropriate handling of the customer can result in loss of sale. The salesman should not force the deal but let the customer feel that he has made the final decision. He should guide the customer in making the choice without imposing his own view. Some adjustment in price or other concession may sometimes be necessary for a successful closing. The salesman should show the same interest in the customer which he exhibited during approach stage. Sales should be closed in a cordial manner so that the customer feels inclined to visit the shop again. In closing the sale, the article should be packed properly and handed over to the customer with speed and accuracy. Once the customer has purchased the article, the salesman should show and suggest an allied product. For instance, he may suggest socks, ties, handkerchiefs, vests, etc., to a customer purchasing a shirt. This is known as additional sales and requires great skill and tact.8) Post-sale follow-up: It refers to the activities undertaken to ensure that the customer is satisfied with the article and the firm. These activities include installation of the products, checking and ensuring its smooth performance, maintenance and after-sale service. It helps to secure repeat sales identify additional prospects and to evaluate salesman's effectiveness.

5) Describe the stages in Business buying process.

Answer: Organizational buying is best viewed as a decision process; the steps that make up the process differ across companies and products. Steps needed in a new task or modified re-buy decision may not be necessary in straight re-buy decisions. Over a period of time, each organisation evolves its own procedures for making purchase decisions. However, we can develop steps for generalization of decision process for better understanding of organizational decision process.

Let us now discuss each of these stages and their impact on organizational decision-making process. STEP 1: Recognizing an organizational need: Organizational purchasing starts with the identification of demand for products and services. While there are different kinds of needs, most needs arise out of situations related to the operation of the business Need recognition is not always as complicated or involved as it is in new task and modified re-buy decisions. It becomes a routine, particularly in a straight re-buy situation. A large construction company may negotiate a contract with a steel beam supplier to replenish inventory on demand. Purchase orders are automatically written and sent to the supplier when the inventory reaches a pre-specified mark. Such routine buying situations offer the best opportunities to use computer based database management systems.

STEP 2: Determining product specifications: Subsequent to identification of the responsibility centre, the purchase manager also specifies exact product and service descriptions for procurement. It is also necessary to estimate the exact quantity required and the period in which these quantities need to be delivered. An estimate of other associate services required for the purchase of specified goods and services is also necessary.

STEP 3: Identifying suppliers: If there are many suppliers on the list, a screening procedure that bases its decisions on certain predefined criteria is needed. The information gathered enables the organizational buyer to quickly look for suppliers who can meet minimum requirements. These requirements might be delivery time, capacity to meet the buyers quantity needs, and breadth of the product line. Failure to meet a minimum requirement usually means that a supplier will not be included in the list of acceptable suppliers, no matter how well that supplier stacks up on other criteria. Because of a good past service to the company, a purchasing agent. For example, put a supplier on the list though he/she does not meet the minimum requirements. At this stage, the buying centres search for different suppliers and try to find out their qualification or eligibility by collecting information on their performance and capability from various sources. It then notifies or requests for proposals from possible suppliers and sends these proposals for evaluation to the standing committee on purchase.

STEP 4: Information search and supplier evaluation: A buying centre may have to evaluate several product types for a particular use before suppliers can be selected. If products are complicated, technically trained people sort through the alternatives to recommend those that meet previously developed product specifications. For instance, many companies deal with the rapidly changing technology of computer products (both hardware and Software) by creating task forces that keep themselves abreast of current product developments. A task force recommends product types that are suitable for particular applications.

STEP 5: Negotiation of purchase orders: An organizational buyer may negotiate a contractual agreement with a supplier. An agreement of this kind can cover a single purchase of a product or repurchase of the product over a period of time. Contracts are commonly used in straight re-buy situations. The buying centre of a large supermarket chain enters into contracts for purchases of frequently sold products like soap, toothpaste, and peanut butter for a year or more. Buying centres negotiate terms of payment, credit, and delivery during this stage to arrive at a specified order routine, which the supplier is required to honour under the negotiated agreement. Normally a term of contract is signed between both the parties.

Step 6: Evaluation of supplier performance: Organizational buyers usually want to know how well suppliers comply with the purchase agreement. Thus, an important part of organizational purchasing is evaluation of suppliers after purchase. This task is typically assigned to the purchasing department. The criteria used for supplier selection become the performance standards for this evaluation Information is collected on the performance of the product or service in use. A questionnaire may be sent to users of the product to obtain their input. Other technical measures of performance may also be devised. A Manufacturer who purchases aerosol packaging, for instance, may select a sample of the packaging and test it for pressure and evenness of application. The buying centre develops a provision for feedback and Evaluation on a continuous basis. It also develops systems and procedures to have a regular communication with the suppliers.

6) Describe some of the strategies for effective marketing and advertising in rural market. Also explain the innovative use of media in rural market.

Answer: Nature of the rural market: Rural marketing involves the process of developing, pricing, promoting, distributing rural specific product and a service leading to exchange between rural and urban market which satisfies consumer demand and also achieves organizational objectives.Strategies for effective marketing and advertising in rural market: The past practices of treating rural markets as appendages of the urban market is not correct, since rural markets have their own independent existence, and if cultivated well could turn into a generator of profit for the marketers. But the rural markets can be exploited by realizing them, rather than treating them as convenient extensions of the urban market. Marketing Strategy: Marketers need to understand the psychology of the rural consumers and then act consequently. Rural marketing involves more exhaustive personal selling efforts compared to urban marketing. Firms should abstain from designing goods for the urban markets and subsequently pushing them in the rural areas. To effectively tap the rural market, a brand must associate it with the same things the rural folks do. This can be done by utilizing the various rural folk media to reach them in their own language and in large numbers so that the brand can be associated with the myriad rituals, celebrations, festivals and other activities where they assemble. Distribution Strategy: One of the ways could be using company delivery van which can serve two purposes - it can take the products to the customers in every nook and corner of the market, and it also enables the firm to establish direct contact with them, and thereby facilitate sales promotion. Annual "meals" organized are quite popular and provide a very good platform for distribution because people visit them to make several purchases According to the Indian Market Research Bureau, around 8000 such meals are held in rural India every year. Rural markets have the practice of fixing specific days in a week as Market Days called "Hats' when exchange of goods and services are carried out. This is another potential low cost distribution channel available to the marketers. Also, every region consisting of several villages is generally served by one satellite town termed as "Mandis" where people prefer to go to buy their durable commodities. If marketing managers use these feeder towns, they will easily be able to cover a large section of the rural population. Promotional Strategy: Marketers must be very careful while choosing the mediums to be used for communication. Only 16% of the rural population has access to a vernacular newspaper. So, the audio visuals must be planned to convey a right message to the rural folk. The rich, traditional media forms like folk dances, puppet shows, etc., with which the rural consumers are familiar and comfortable, can be used for high impact product campaigns. Radio is also very popular source of information and Entertainment, Adds on radio can also be a helpful tool for market.Innovative use of media in rural market: In addition to the conventional media vehicles, a lot of innovative mediums are used in rural advertising and marketing. Some of the most striking are: Puppetry: Puppetry is the indigenous theatre of India. From time immortal it has been the most popular form and well-appreciated form of entertainment available to the village people.It is an inexpensive activity. The manipulator uses the puppets as a medium to express and communicate ideas, values and social messages. Life Insurance Corporation of India used puppets to educate rural masses about Life Insurance; enlisting the help of the literacy house inLucknow.These plays were shown to the audience in villages in UP, Bihar, & MP. The number of inquiries at local Life Insurance Companies during the period immediately following the performance was compared with normal frequency and found to be considerable higher.The field staff of the corporation also reported definite impact on the business. Outdoor media - wall painting: This medium is the most widespread form of advertising and is the favourite of the Indian rural masses, as they can view it at their leisure. Wall paintings are important because they constantly remind rural people about name and logos in addition to highlighting the key brand promise. They also reflect the vibrant economic and social life of the area. They are economical as compared to other traditional media forms, as the manpower and infrastructure requirements are low. They can easily be customized in accordance with regional language variations without this impacting their artistic content. Audience recall rates are high. Folk media: Folk media consist of folk songs, folk dances and other theatrical forms, including puppetry, street theatre and magic shows, which are an intrinsic part of the culture and heritage of the land. They are capable of communicating message about contemporary issues, topics and concerns as per the needs and demands of a changing society. They are a face-to-face and personal form of communication.