Master of Business Administration – MBA Semester 2 MB0046 – Marketing Management - 4 Credits (Book ID: B1135) Assignment Set- 1 60 Marks Note: Each question carries 10 Marks. Answer all the questions. Q.1 Discuss the different marketing concepts with its merits and drawbacks. [10 marks] Answer: Marketing is a set of business activities that facilitate movement of goods and services from producer to consumer. It is an ongoing process of discovering and translating consumer needs into products and services, creating demands for them, serving the customer and his demand through a marketing programme of promotion and distribution to fulfill the company’s marketing goals in a competitive environment. It is evident that customer, his needs and wants are very important aspects of today’s marketing. Customer focus is the very essence of marketing and his viewpoints should be taken into account while making marketing decisions. In this era of rapid changes, it is marketing which keeps the business in close contact with its economic, political, social and technological environment and informs it of events and changes that can influence its activities. American Marketing Association (AMA) offers the following definition of Marketing.( AMA 2004) Definition: Marketing is an organization function and a set of process for creating, communications and delivering value to
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Master of Business Administration – MBA Semester 2
MB0046 – Marketing Management - 4 Credits
(Book ID: B1135)
Assignment Set- 1
60 Marks
Note: Each question carries 10 Marks. Answer all the questions.
Q.1 Discuss the different marketing concepts with its merits and drawbacks. [10 marks]
Answer:Marketing is a set of business activities that facilitate movement of goods and services from producer to consumer. It is an ongoing process of discovering and translating consumer needs into products and services, creating demands for them, serving the customer and his demand through a marketing programme of promotion and distribution to fulfill the company’s marketing goals in a competitive environment.It is evident that customer, his needs and wants are very important aspects of today’s marketing.Customer focus is the very essence of marketing and his viewpoints should be taken into account while making marketing decisions.In this era of rapid changes, it is marketing which keeps the business in close contact with its economic, political, social and technological environment and informs it of events and changes that can influence its activities.American Marketing Association (AMA) offers the following definition of Marketing.( AMA 2004)Definition: Marketing is an organization function and a set of process for creating, communications and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stake holders.The Chartered Institute of Marketing defines Marketing as:Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements, profitably.Having understood what a Market is and what is Marketing, we will now look what is an exchange and the exchange process.The Exchange ProcessToday’s marketing system has evolved from the time of a simple barter of goods through the stage of a money economy to today’s complex marketing. Throughout all these stages, exchanges have been taking place. In small town and villages there were artisans such as carpenters, weavers, potters blacksmiths, barbers and others such service providers who produced goods and services not only for their own consumption
but also for exchanging with others what they could not produce but needed. This was barter system of exchange. For a transaction to take place between two parties, it was necessary that there be needs and wants on both sides. The development of money came to act as a common medium, and the exchange process became very easy and convenient.Fig. below shows the exchange process under money economy in which
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Q.2 a) What are the features and objectives of marketing research? [5 marks] b) Give a note on psychoanalytic model of consumer behaviour. [5 marks]
Answer:a) Features of Marketing Research1. It is a systematic process – It has to be carried out in a stepwise and systematic manner and the whole process needs to be planned with a clear objective.2. It should be objective – It is important that the methods employed and interpretations are objective. The research should not be carried out to establish an opinion nor should it be intentionally suited towards predetermined results.3. It is multidisciplinary– Marketing Research draws concepts from other disciplines such as Statistics for obtaining reliable data and from Economics, Psychology and sociology for better understanding of buyers.
Objectives of Marketing ResearchMarketing Research may be conducted for different purposes. Based on how organizations use Marketing Research, objectives of Marketing Research can be summarized as follows:1. To understand why customers buy a product2. To forecast the probable volume of future sales or expected market share3. To assess competitive strengths and strategies4. To evaluate the effectiveness of marketing action already taken5. To assess customer satisfaction of company’s products/services
b) The Psychoanalytical Model: The psychoanalytical model draws from Freudian Psychology. According to this model, the individual consumer has a complex set of
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Q. 3 Silver Line Manufacturers produce several varieties of automobile components. They have 3 to 5 suppliers who supply materials regularly. Recently, procurement manager of Silver Line discussed in the meeting that they have to look out for new suppliers since they would be expanding their business
operations to many places. How do you think Silver Line have to go about this situation? [10 marks]
Answer:A marketing oriented company always keeps tab on its external environment carefully to analyze opportunities and threats. This external environment influences company’s strategies in two levels i.e. external macro environment and external micro environment. The macro environment involves political and legal, economic and natural, social and cultural and technology environment. The micro environment consists of supply chain, customer and competitor. These factors are uncontrollable by the organization. Even the best company faces threat if one of the external environments is adverse to it. A moderate company will be successful if the external environment favors it. Hence Silver Line Manufacturers should monitor the external environment carefully and continuously.Environmental scanningThis is the process of gathering, analyzing and forecasting of external environments’ information to identify opportunity and threats that company faces.Need for environmental scanning:It helps in1. Identifying the opportunities that company has in immediate future.2. Identifying the threats faced by the company.3. Demand forecasting4. Developing appropriate business plans.5. Adjusting the company strategy in changing competitive environment.
3. Analyzing the organization’s micro environmentMarketing department let alone can not satisfy all the needs of customer. Therefore it is
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Q.4 Briefly explain the bases for segmenting consumer markets along with examples. Do you think these bases are required for market segmentation? Why? [10 marks]
1) Geographic segmentation: Dividing the market into different geographical units such as nations, states, regions, cities or neighborhoods. The company can operate in one or a few Geographic areas or operate in all but pay attention to local variations. For example, Bennett, Coleman and co Ltd divided markets according to geographical units for their tabloids. In Bangalore the tabloid is known as Bangalore Mirror where as it is Mumbai Mirror in Mumbai.2) Demographic Segmentation: In demographic segmentation the market is divided into groups on the basis of variable such as age, family size, family lifecycle, gender, income, occupation, education, religion, race, generation, nationality and social class. Demographic variables are the most popular bases for distinguishing customer groups. One reason is that consumers’ wants, preferences and usage rates are often associated with demographic variables. Demographic variables are easy to measure.
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Q.5 Mention the forces in micro and macro environment that are likely to influence an organisation’s working and functions. Is environmental scanning necessary for all organisations? [10 marks]
Deducing a strategic plan in to specific marketing plan require coordination of other functions like finance, Human resource, production, and research and development.
Marketing intermediaries: The firms which distribute and sell the goods of the company
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Q.6 Consider the company, Maruthi Udyog Limited. Elaborate on the company’s marketing mix and give examples related to the 4 P’s. [10 marks]
Answer:
Developing the marketing mix.Marketing mix: The product, its price, promotion and distribution blended together to get favorableresponse from the customer.This is also called as 4P’s of Marketing or Market assortment.
1. Product: It is a good, service, idea, place or person that offered to customer to satisfy his/her need. The attributes of product are variety, quality, warranty, design, packaging, and service For example, Maruthi Udyog Limited company offers SUV multi purpose vichile like Wagan-R and small segment car Zen.
2. Price: the value at which customer is willing to purchase the product. For example, Maruthi Udyog Limited offers low budget car like maruti 800 for small
November 2010 drive 2 Master of Business Administration – MBA Semester 2
MB0046 – Marketing Management - 4 Credits
(Book ID: B1135)
Assignment Set- 2
60 Marks
Note: Each question carries 10 Marks. Answer all the questions.
Q.1 Explain the following: a) Product mix dimensions b) Product line strategies [10 marks]
Answer:a) Product mix dimensions :The number of product line and items offered by marketer to the consumer A company’s product mix has four different dimensions. They are product mix width, product mix length, and product mix depth and product mix consistency.Product mix width: The total number of product line that company offers to the consumers. For example, Jyothy laboratories product mix has six lines. Hence width is 6
Product mix length: The total number of items that company carries within its product line. For example, Jyothy laboratories fabric care division has three items
Product line depth: The number of versions offered of each product in the line.For example, Jyothy laboratories’ Jeeva Natural is offered in three versions i.e. Coconut
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Q.2 a) Assess the factors that are involved in setting up a distribution channel. [6 marks] b) Give a note on Retailing. [4 marks]
Answer:a) the factors that are involved in setting up a distribution channel are:1. Understanding the customer profile: Purchasing habits differs from individual to individual. Individuals who face shortage of time would like to purchase on the net (direct channel) and who have abundance of time would like to experience the shopping. Some of them would like to have variety of goods while others want unique or specialized products. Hence marketer should understand who are his customers? How do they purchase? For example, customer don’t like to travel half a kilometer to purchase a shampoo sachet but he don’t mind travelling two kilo meters while purchasing durable goods.
2. Determine the objectives on which channel to be developed.a. Reach: Company would like to make the goods available in most of the retail outlets. It will adopt intensive distribution channel.b. Profitability: Company wants to reduce the cost in the channels and enhance their profitability. It will restructure the channel to optimum level so that it can reduce the cost
Q. 3 Geo Ad Agency has many corporates as their clients. Due to lack of resources, it is planning to cut down work and reject certain clients. Further, they want to establish a concrete system in communication development and ad structure. What would be your advice to Geo Ad agency in this aspect? [10 marks]
Answer:Geo Ad Agency need to establish a concrete system in communication development and ad structure should follow the following process:
Preparing target customer profile: Effective marketing communication starts with identifying the target customer to whom the communication is developed. In this stage company prepares target customer profile.
Identifying promotion objectives: Target customer profile provides inputs about his/her readiness to purchase the product. Customer may be in any of the six stages of hierarchy of effects. The six stages are awareness, knowledge, liking, preference, conviction and purchase. Every company likes to bring their customer to purchase stage from other five stages.
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Q.4 Discuss the objectives of training and training programme along with its significance. [10 marks]
Answer:Objectives of Training: The objectives are summed up below:1. To facilitate the salesmen to acquire the technique and principles of salesmanship, process of sales, canvassing etc.2. To bring down the labor turnover in the sales force.3. To facilitate better sales performance.4. To improve the relations with the customers.5. To increase the efficiency of sales personnel.6. To keep the salesman informed of the knowledge of products, market, competitors etc., to face all situations.7. To lower the selling expense so as to increase the profits.8. To maintain sound relation between employer and employee.9. To develop better knowledge, and the ways and means to resist all situations.10. To motivate the consumers more effectively.
Training is a continuation of selection. Having selected the salesmen, there are two options. They can be sent to the field directly with samples, order books etc., (born
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Q.5 Management of Sai Systems Pvt. Ltd. has decided to enter international marketing scenario. What methods are applicable to the company to enter international markets and what should be the approach? [10 marks]
Answer:Sai Systems Pvt. Ltd has plans to go for international marketing should answer some basic questions likea. In how many countries the company would like to operate?b. What are the types of countries it plans to enter?To answer the above questions companies evaluate each country against the market size, market growth, and cost of doing business, competitive advantage and risk level.
Checklist for country evaluationCharacteristics Weightages score1. Political rights2. Civil liberties3. Control of corruption4. Government effectiveness5. Rule of law6. Health expenditure7. Education expenditure8. Regulatory quality9. Cost of starting a business10. Days to start a business11. Trade policy12. Inflation13. Fiscal policy14. Consumption15. Competition
Once the market is found to be attractive companies should decide how to enter this market.Companies can enter international market from any one of the following strategies. They area. Exportingb. Licensingc. Contract manufacturingd. Management contracte. Joint ownership
f. Direct investmentExporting is the techniques of selling the goods produced in the domestic country in a
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Q.6 a) Give a note on Product mix pricing strategies. [5 marks] b) What is Brand development? How is it done? [5 marks]
Answer:a) Product mix pricing strategies: 1. Product Line pricing: strategy of setting the price for entire product line. Marketer differentiate the price according to the range of products i.e. suppose the company is having three products in low, middle and high end segment and prices the three products say Rs 10 Rs 20 and Rs 30 respectively.
NOKIA 1110 NOKIA 7610 NOKIA E90Price: Rs 1349 Price Rs 6249 Price Rs 34599
In the above example of Nokia mobile phones Nokia 1110 is priced @ Rs 1349, Nokia
