Marketing Management V2

Assignment - AQuestion 1: Define marketing management. Discuss the various managementphilosophies. Explain how the marketing and selling are contrasted andbriefly explain the societal marketing concept.

Answer:Marketing Management is a business discipline which is focused on the practicalapplication of marketing techniques and the management of a firm's marketingresources and activities. Rapidly emerging forces of globalization have compelledfirms to market beyond the borders of their home country making Internationalmarketing highly significant and an integral part of a firm's marketing strategy.Marketing managers are often responsible for influencing the level, timing, andcomposition of customer demand accepted definition of the term. In part, this isbecause the role of a marketing manager can vary significantly based on a business'size, corporate culture, and industry context. For example, in a large consumerproducts company, the marketing manager may act as the overall general managerof his or her assigned product. To create an effective, cost-efficient Marketingmanagement strategy, firms must possess a detailed, objective understanding oftheir own business and the market in which they operate. In analyzing these issues,the discipline of marketing management often overlaps with the related disciplineof strategic planning.

Various Management PhilosophiesProduction Concept: The production concept holds that customers will favorproducts that are available and highly affordable and that management shouldtherefore focus on improving production and distribution efficiency.

Product Concept: The production concept holds that customers will favorproducts that are available and highly affordable and that management shouldtherefore focus on improving production and distribution efficiency.

Selling Concept: Many organizations follow the selling concept. The sellingconcept is the idea that consumers will not buy enough of the organization'sproducts unless the organization undertakes a large-scale selling and promotioneffort.

Marketing Concept: The marketing concept holds that achieving organizationalgoals depends on determining the needs and wants of target markets and deliveringthe desired satisfactions more effectively and efficiently than competitors do.

Societal Marketing Concept: The societal marketing concept holds that theorganization should determine the needs, wants, and interests of target markets. Itshould then deliver the desired satisfactions more effectively and efficiently thancompetitors in a way that maintains or improves the consumer's and the society'swell-being.

Contrast between Marketing Concent and Selling ConceptThe Selling Concept and the Marketing Concept are two different concepts ofMarketing that related to the evolution of marketing in the world. The SellingConcept holds that in order for the firm to be profitable, it must focus on sales ofthe product regardless of the orientation of the product itself. This concept becamepopular after World War 2. On the other hand, the Marketing Concept is one of therecent concepts in marketing. It holds that a firm must identify the needs of theconsumer and then plan, price, promote and distribute its product according ton thedemands of the consumer.

Explains The Societal Marketing Concept 1) The societal marketing concept isthe newest of the marketing philosophies. 2) It questions whether the puremarketing concept is adequate given the wide variety of societal problems and ills.3) According to the societal marketing concept, the pure marketing conceptoverlooks possible conflicts between short-run consumer wants and long-runconsumer welfare. 4) The societal concept calls upon marketers to balance threeconsiderations in setting their marketing policies: a) Company profits. b) Customerwants. c) Society's interests.

Question 2: Explain the various factors influencing the company's marketingstrategy with the help of suitable examplesAnswer:There are various factors influence the company's marketing strategy. Theseare: Political factors: laws, rules and regulations that you have to obey which havebeen set by the government. For example; supermarkets are not allowed to openmore than six hours on a Sunday. The sale of good act of 1979, goods sold shouldmeet three conditions.

Economic factors: The rate of taxes and the credit crunch could affect marketingas people will have less money to purchase products and will go for the cheaperoption if possible. If interest rate keep going up these will put of some of thebusiness. As the amount of income and output of every organisation has a biggerrole of economic factors.

Socio-cultural factors: personal choices and lifestyles, demand from consumersmay affect marketing if there is too little of what the customer wants and needs.The High Street is suffering badly from a combination of higher mortgagerepayment and credit card costs, fuel and food bills, which are putting huge strain

on British households.

Technological factors: Modern and fast technology which can make themarketing business more efficient, gives more choices on how to send, receive andstore information.

Geographical factors: Every place have different atmosphere due to which youcannot market every product at every place. For example in cities where you can'tfind mountains you can't market climbing equipment .In desert area you can'tmarket swimsuits

Question 3:What is marketing research? Discuss the marketing researchprocess with the help of an example. Briefly explain the sources of data.Answer:Market Research is a systematic, objective collection and analysis of data about aparticular target market, competition, and/or environment. It always incorporatessome form of data collection whether it be secondary research (often referred to asdesk research) or primary research which is collected direct from a respondent.The purpose of any market research project is to achieve an increasedunderstanding of the subject matter. With markets throughout the world becomingincreasingly more competitive, market research is now on the agenda of manyorganisations, whether they be large or small.

The Market Research ProcessTo conduct market research, organisations may decide to undertake the projectthemselves (some through a marketing research department) or they might chooseto commission it via a market research agency or consultancy. Whichever, beforeundertaking any research project, it is crucial to define the research objectives i.e.what are you trying to achieve from the research? And what do you need to know?After considering the objectives, Market Researchers can utilise many types ofresearch techniques and methodologies to capture the data that they require. All ofthe available methodologies either collect quantitative or qualitative information.The use of each very much depends on the research objectives but many believethat results are most useful when the two methods are combined.

Quantitative ResearchQuantitative research is numerically oriented, requires significant attention to themeasurement of market phenomena and often involves statistical analysis. Forexample, a bank might ask its customers to rate its overall service as excellent,

good, poor or very poor. This will provide quantitative information that can beanalysed statistically. The main rule with quantitative research is that everyrespondent is asked the same series of questions. The approach is very structuredand normally involves large numbers of interviews/questionnaires.Perhaps the most common quantitative technique is the ‘market research survey’.These are basically projects that involve the collection of data from multiple cases– such as consumers or a set of products. Quantitative surveys can be conducted byusing post (self-completion), face-to-face (in-street or in-home), telephone, emailor web techniques. The questionnaire is one of the more common tools forcollecting data from a survey, but it is only one of a wide ranging set of datacollection aids.

Qualitative ResearchQualitative research provides an understanding of how or why things are as theyare. For example, a Market Researcher may stop a consumer who has purchased aparticular type of bread and ask him or her why that type of bread was chosen.Unlike quantitative research there are no fixed set of questions but, instead, a topicguide (or discussion guide) is used to explore various issues in-depth. Thediscussion between the interviewer (or moderator) and the respondent is largelydetermined by the respondents' own thoughts and feelings.As with quantitative techniques, there are also various types of qualitativemethodologies. Research of this sort is mostly done face-to-face. One of the bestknown techniques is market research group discussions (or focus groups). Theseare usually made up of 6 to 8 targeted respondents, a research moderator whoserole is to ask the required questions, draw out answers, and encourage discussion,and an observation area usually behind one way mirrors, and video and/or audiotaping facilities.In addition, qualitative research can also be conducted on a ‘one on one’ basis i.e.an in-depth interview with a trained executive interviewer and one respondent, apaired depth (two respondents), a triad (three respondents) and a mini groupdiscussion (4-5 respondents)

Case StudyQuestion 1: Suggest bases for segmentation of market for groom plus productsAnswer:Segmentation is the division of market based on similarity of tastes and preferenceof the customers. Different products ranges target different customer segments. Ifthe marketers know which segment of the market they are targeting, they candesign their marketing mix to suit the customers in the segment.

In the case studies mentioned, the target market for male fairness segment industryis the metro sexual youth. The domain of marketing segment is limited to thecities. Therefore the bases for segmentation should be a mixture of Individualmarketing, niche marketing and Local marketing.

Individual marketing is the extreme level of segmentation in which ABC can focuson individual customers. The company can approach individuals through emailsand tie up with popular websites for promoting its own product. The company cansend their promotional mails to the large customer base of these websites.

The niche marketing can be an effort to position the fairness products in a smallerurban market that have similar attributes and some specific unsatisfied needs.Asresearch by the company shows that men prefer bleach with its own fragrance andformulations niche marketing can be an effective strategy.

Local marketing can help expand the marketing beyond the boundaries of themetro cities. The idea should be to offer customized fairness product to suit thelocal markets.

As mentioned in the case study that the youths are driven by desire to look fairer,this particular attribute can be exploited. Even McDonalds had to design theirstrategy to to suit the local markets by introducing indianite products.

Besides certain segmentation variables has to be kept in mind such as age and lifecycle stage, gender, income, social class and certain psychographic attributes likevalues, beliefs, lifestyle, personality before designing a segmentation of market.

Question 2: Discuss the importance of packaging in marketing of the above product rangeAnswer:We all know that packaging adds value to the product in the form of easierhandling and secured usage. Packaging is very important for fairness products as itplays a vital role in its appeal and sales of the product. A properly packagedproduct can result in repeat purchase by the customers.

For a fairness product, an easy to use packaging which is secured and transparentare likely to have better sales. Transparent packaging will help the customer viewthe contents of the product and help them in their purchase decision making.Packaging is also vital for preservation and their continual usage. Incase of beautyproducts, size shape color, and labeling should attract both visually and andpsychologically.

For better recognition and preventing confusion it is important to maintainconsistency in packaging design.

Packaging should also facilitate easier handling by the retailers and dealers.Itshould also be environment friendly as it would add to the good quality of theproduct and thus help in the easy saleability and marketability of the product.Innovative packaging can help distinguish beauty products from those of competitors. Large package size can motivate the customers to consume more as they have the feeling that they have bought a large quantity of the product at the reduced rate.The ultimate objective of packaging particularly in case of fairness products shouldbe to facilitate easier usage, secured handling and preventing any spillage whileusing. The shape, size, colour, and mode of packaging should appeal to theirpsyche. As a result it will help in creating brand value and loyal customer base.

Question 3: Suggest a suitable promotion mix for creating awareness of theabove range of products.Answer:Promotion of a product requires a diligent deliberation. There are a wide variety ofmedia to choose from. Therefore it is indispensable to know the target customers,their location, the message to be delivered, and the timing of the promotions.The main purpose of promotion is to boost the sales of a product by creating designi.e, both the consumer as well as trade demand. Suitable promotion mix in case of

the beauty products can be the following.

1. Selection of the right media like television, websites and lifestyle journalscan be effective in case of fairness product.. Most visible display hoardingon the busy streets, health centers, gym , spa etc. can help promote theproduct.

2. Point of purchase displays such as window displays, wall displays, danglers,balloons and of course innovations like sniff teasers that spreads the aromaof product can be an effective promotion mix.

3. Distribution of free samples to niche segments to encourage them try anew product.

4. Free gifts, coupons ,scratch card scheme can incentivise the customers buythe same product again.

5. Devising strategies through money refunds and rebates so that qualifiedcustomers make repeat purchase. The method of refund should beconsistent and confidence boosting.

Besides publishing stories and articles in leading dailies and health magazines andpromoting social and health activities before launching the product can help buildawareness. If a products feature and specialty can be carried in the editorial sectionof newspapers, publications or the broad cast medium, it can help not only inbuilding awareness but also build credibility.

Assignment - CObjective Type QuestionQuestion 1. The Selling Concept isA. ProductsB. Customer needsC. MarketsD. None of the above

Question 2. Market MeansA. The set of actual and potential sellers of a productB. The set of actual and potential buyers of a productC. Both buyers and sellersD. None of the above

Question 3. BCG stands forA. Boston consumer goodsB. Boston crdit groupsC. Bosston consultancy groupsD. Both a and b

Question 4. Marketing Mix Elements areA. Product, price, place, and customersB. Product, price, place and promotionC. Product , price, place and physical distributionD. Both b and c

Question 5. Diversification meansA. A strategy for company growth by starting up or acquiring businessesoutside the company's current products and marketsB. A stage for company growth and starting up or acquiring other companiesand their productsC. A unit which deals in many products and servicesD. Both b and c

Question 6. SBU stands forA. State bank of uttranchalB. Strategic business unitC. Semi brand unitsD. None of the above

Question 7. Market Segmentation isA. The process of classifying customer's into groups, each with differentneeds, characteristics or behaviours.B. The process of classifying the markets into groups each with same needsand characteristicsC. The process of making the dealers and distributors happy about theproductsD. None of the above

Question 8. Strategic Control meansA. A critical review of the company's overall production effectivenessB. A critical review of the company's overall finanicial effectivenessC. A critical review of the company's overall marketing effectivenessD. None of the above

Question 9. Changes in incomiesA. An economic enviorenmental factorB. A political environment factorC. A socio cultural environment factorD. Both b and c

Question 10. Status isA. The general life style given by the societyB. The general esteem given to a role by societyC. The symbol in the marketD. None of the above

Question 11. The first step in strategic planning isA. Defining the company's missionB. Designing the marketing programC. Designing the business portfolioD. None of the above

Question 12. The 4c's of the marketing mix tactial tool kit areA. Customer, cost, convienee and curveB. Customer, cost, convience and coverageC. Customer, cost, convienence and communicationD. None of the above

Question 13. Promotion mix elements areA. Price, advertising , publicity and sales promotionB. Advertising, sales promotion, publicity and personal sellingC. Personal selling, strategy, advertising and publicityD. Both a and c

Question 14. Marketing productivity audit includes:A. Products, price and distribution analysisB. Profitability analysis and cost effectiveness analysisC. Advertising and sales force anlaysisD. Both a and c

Question 15. Demography isA. The study of human population in terms of size, location, age, gender,race, occupation and other statisticsB. The study of the marketing plansC. The study of all the activities in the organizationD. None of the above

Question 16. A sample is aA. Segment of the area in the marketB. Segment of the population selected to represent the population as a wholeC. Part of the dataD. Both a and c

Question 17. The two types of sales forecasts are:A. Industry and the market sales forecastsB. Industry and the price forecastsC. Industry and the company sales forecastsD. None of the above

Question 18. PVCM stands forA. Percentage and value cost marginB. Percentage-variable contribution marginC. Percentage value cost marginD. Both a and c

Question 19. Inventory turnover isA. Gross margin/price

B. Sales/costC. Sales/average value of inventoryD. Both a and b

Question 20. The product is now more widely known and the sales grow rapidly is thestage ofA. Introduction stageB. MaturityC. GrowthD. Decline

Question 21. The 4 stages of the PLCA. Growth, introduction, maturity and declineB. Growth introduction maturity and newC. Introduction, decline, new product, growthD. Both a and c

Question 22. The new product development process starts withA. screeningB. idea generationC. product developmentD. none of the above

Question 23. The process of creating and developing product specifications that optimizethe function, value and appearance of the product isA. Product designB. Market designC. Industrial designD. None of the above

Question 24. Setting a price at or near competitive levels isA. Penetrating pricingB. Parity pricingC. Competition pricingD. Both a and c

Question 25. In advertising, GRP stands forA. Grand rating pointsB. Growth rating pointsC. Gross rating pointsD. None of the above

Question 26. Inventory cost is

A. Annual sales/inventory turnover X inventory carrying costB. Total sales/inventory carrying costsC. Total costs/annual costD. Both b and cQuestion 27. The systematic design, collection analysis, and reporting of data relevant toa specific marketing situation facing an organization isA. Market researchB. Marketing researchC. Product researchD. Both a and c

Question 28. In collecting primary data, the two main research instumetns are:A. Mechanical devices and the telephonic conversationB. Questionnaire and the mechanical deviceC. Questionnaire and the telephonic conversationD. None of the above

Question 29. VMS stand forA. Vertical marketing systemB. Vertical management systemC. Value marketing systemD. Vertical measuring system

Question 30. A descriptive thought that a person has about something is calledA. IdeaB. BeliefC. ValueD. Description

Question 31. The collection of businesses and products that make up the company isA. Product portfolioB. Business portfolioC. Market portfolioD. Both a and c

Question 32. Two or more outlets that are commonly owned and controlled areA. Business storesB. Chain storeC. ProductsD. None of the above

Question 33. The practice of using the established brand names of two differentcompanies on the same product

A. BrandingB. Re brandingC. Co brandingD. None of the aboveQuestion 34. The set of basic values, Perceptions, wants and behaviours learned by amember of society from family and the important institutions is known asA. CultureB. Sub cultureC. AttitudeD. None of the above

Question 35. The total combines lifetime values of all the company's customers is calledA. Product equityB. Customer equityC. Market equityD. Both a and c

Question 36. CRM stands forA. Cost recovery managementB. Customer relationship managementC. Customer role in managementD. None of the above

Question 37. Adding a standard mark up to the cost of the product isA. Differentiated pricingB. Cost plus pricingC. Cost only pricingD. None of the above

Question 38. Human wants that are backed by buying power are calledA. ProductsB. DemandsC. MarketsD. Both a and c

Question 39. Stocking the product in as many outlets as possible is calledA. Extensive distributionB. Inclusive distributionC. Intensive distributionD. None of the above

Question 40. In marketing, MIS stands forA. Management information system

B. Marketing information systemC. Market idea systemD. Major information system