Académique Documents
Professionnel Documents
Culture Documents
Marketing Management
Assignment – A
Q 1. Define marketing. Distinguish between Selling and Marketing. What are four
components of marketing explain?
Ans. The term marketing has been defined as a social and managerial process by
which individuals and groups acquire what they desire through exchanging and
creating products and values with others.
It starts with factory, focuses on company’s existing products and calls for
heavy selling and promotion to obtain profitable sales. Selling is inside- out
perspective.
1) PRODUCT:
Product means any goods or services or a combination of both which the
company offers to market/ target market. While defining product as a feature
of marketing mix company defines
a) Product Variety
b) Quality
c) Design
d) Features
e) Brand Name
f) Packaging
g) Sizes
h) Services
i) Warranty
j) Returns etc
2) PRICE:
Price may be defined as a amount of money incurred which the consumers have
to pay to obtain the product
following components must be taken into consideration while fixing the price:
a) List Price
b) Discounts
c) Allowances
d) Payment Period
3) PLACE:
Place includes company activities that make the product available to target
consumers. Following elements to be borne in mind
a) Channels
b) Coverage
c) Assortments
d) Locations
4) PROMOTIONS:
a) Advertising
b) Personal Selling
c) Sales promotion
d) Publicity
An effective marketing program is the one which blends all the elements of
marketing mix into a coordinated program desired to achieve company’s
marketing objectives.
Q 2. How would you price a new product (say a Mixi)? What options you would
employ to generate quick revenue?
a) Mark Up pricing:
Selling price of mixi can be calculated by adding margin to its cost price.
Margin or mark up may vary depending on market and features of mixi.
Under absorption cost pricing or full cost pricing price is calculated by assesing
variable and fixed costs involved in manufacturing, selling and administering
the product and then by adding required margins towards profits without any
risks whatsoever.
Marginal cost includes all direct variable cost of manufacturing mixi in addition
to a portion of fixed variable
Break even point is the point at which the total revenue and the total cost
are equal.This exercise is aimed at relating total costs and revenues at
different volume levels. At level where total cost equals total revenues
breaking even of costs and revenues takes place.
The seller can charge the maximum price the consumer can pay for mixi. This is
not sophisticated method and used primarily by retailers. In long run it is
not safe method though in short run it can generate huge cash.
b) Skimming Pricing:
In this type of pricing scheme the seller can skim the market by high prices in
first instance and then subsequently settle the prices to lower level.
c) Penetration Pricing:
a) Premium Pricing
b) Discount Pricing
c) Parity pricing/ going rate pricing
For all of them competitor prices serves as reference point. All these strategies
can be decided depending on competitor profile and our mixi product profile.
a) Personal Factors:
Various personal factors like the likes & dislikes, preferences, status level in
the society also infuence the buying decision. General lifestyle, way of
dressing, ornaments, age, education level, financial status all define an
individual’s purchasing decision.
b) Cultural Factors:
c) Psychological Factors:
All Individuals differ from one another on factors like personal believes, faiths
and attitudes. One may be timid and plain whereas other may be aggressive
and outgoing. One may be least innovative whereas other may welcome
anything new.
Man is a social animal who livies in a society and hence is influenced by it and
in turn influencing its course of development. Since there are two broad groups
of which an individual is a part of
E.g. friends, family, closely knit organizations, close friends etc. In any
intimate group there is likely to be a group leader. Though leader may not
directly influence every member in his day to day purchases, his judgement on
men and matters, facts and fashions is respected by group.
Q 4. Marketing is a process; explain with suitable examples and a flow chart the
concept of marketing process.
Ans. Marketing is social and managerial process by which individuals and group
obtain what they need and want through exchanging and creating products and
value with others.
a) Marketing Concept:
Buying motives can be defined as all the impulses, desires and considerations
that induce a buyer to purchase a given product. These motives could be
product motives/ patronage motives- rational or emotional motives etc.
c) Mark Up Price:
Marketing Management
Assignment - B
Q 1. It is often said that middlemen are unnecessary. They cause price inflation,
do you agree to this statement. Explain with suitable examples.
Organization overheads and other associated costs are much higher than dealer
carrying out tasks as above. Hence in the process organisations reduce their
cost by offloading activities as above to dealer, offer discounts to dealers to
meet his expenses so that end of day both dealers and organisations gain and
sales and payment situation of organisation both improve.
Ans. Sales Promotion is any short-term offer or incentive directed towards buyers,
retailers or wholesalers that is designed to achieve a specific immediate
response.
These are one of the oldest practices of sales promotion. Trade fairs and
exhibitions provide companies with opportunity of introducing and displaying
their products. This brings the company’s products and consumers in direct
contact with each other. Seeing is believing in underlying concept here. In case
of high cost industrial products trade fairs have become a handy sales
promotion tool.
They are useful for introducing new product or strengthening sale of existing
product.
3) Contests:
Contests of various kinds constitute another promotional tool. There are dealer
contests meant exclusively for dealers of company and consumer contests open
for all. While dealer contests normally remain closed affair between company
And its dealers, consumers contests are given wide publicity to attract
participation of widely scattered consumer base. Big budgets are normally
alloted for consumer contests as they need attractive prizes and wide
publicity.
As for Example “ Nescafe shake contest offered Rs 5 Lacs as total prize money
with Rs 1 Lacs for first prize. Total number of prizes ran to nearly 21,000. The
advertising outlay for contest was around Rs 20 Lacs. Contest had specific
objective to make consumers aware of Nescafe as a cool drink in additional to
its image of hot beverage.”
4) Sales Promotion on Internet:
Q 3. The right marketing mix can be adopted only after segmentation. Elucidate
with examples on the basis of segmentation as applied in Television
Marketing.
Ans. The market for any product is made of several segments. A market is sum total
of consumers of a given product and consumers are seldom-homogenous lot,
they vary in their characteristics and buying behavior. It is thus natural that
many differing segments occur within market.
1) Geographical Segmentation:
2) Demographic Segmentation:
Segmentation based on age, sex, marital status, family, size, race, religion,
community, language, occupation, income/ purchasing capacity, etc. Such as
MTV/ V channel is segmented for youth group, Astha channel is for older age
group etc.
3) Psychographic Segmentation:
Ans. Brand is name, term, symbol to identify goods and services of one seller from
offer of other competitors. It is valuable, renewable and lasting asset of
organisation. The battle in market does not take place between companies but
between brands. Years of uninterrupted nurturing in product, support activities
of product, with support of good marketing programme, is required to build a
brand. Such a programme includes meaningful product differentiation and an
apt positioning for brand, accompanied by right distribution and promotion
support. Hence right and sustained quality is part of brand. Without right and
sustained quality over a period of time it is difficult of build a brand.
Q 5. How will you go about describing a marketing plan for consumer product,
explain with help of marketing plan process?
Ans. Marketing Plan is mechanism by which the objectives, activities and budgets
for various marketing plans are integrated. These plan serve three basic
purpose:
CASE STUDY
GOOD KNIGHT
1) Ease of use
2) New concept in market.
OPPORTUNITIES AVAILABLE:
1) Fears with regard to side effect of smoke associated with coils and continuous
usage of cream on skin were in people mind.
2) Big market size.
THREATS:
1) Few brands were available but suffered from poor brand awareness due to lack
of advertisement support.
2) Low Budget for Good Knight for advertising and promotion.
COMMUNICATION OBJECTIVES:
TARGET GROUP:
Mothers and fathers of households with young children were prime target group.
BRAND NAME:
Good Knight means Good Protector. Brand name verbalises consumer benefit in entirity.
MEDIA STRATEGY:
1) Total budget was marked as Rs 2 Lacs for initial four months. Launch was limited initially to
Mumbai to Kerala. Mumbai as Kerela were decided as initial places because of preset
channels already familiar to client.
2) It was decided to restrict only to daily newspapers to help in selling to primary target group.
As budget was limited intensive approach was found more approriate.
3) First launch ad appeared in Times of India Bombay, Sunday Mid Day, Malayalam Manorama,
Mathrubhumi followed thereafter.
4) As sales picked up and money started flowing in Good Knoght went for TV ads over Mumbai
local channels. On spending of Rs 2.5 lacs sales worth Rs 20 Lacs were generated.
Q 2. At the time of case preparation Good Knight was probably the only product in EMD
category. As new International Competition, with known brand names enter the
market, what changes if any would you suggest in the marketing communication
strategy of Good Knight.
Ans. Good Knight must continuously invest in R&D. It must come with new products based on
market forces so as to maintain number one position.
ASSIGNMENT –C
1. Marketing Refers To
a. Developing a product and making people buy them
b. Persuading consumers to buy the products
c. Producing products and displaying them
d. Understanding the needs of consumers and delivering them.
Say Yes or No
d) Behavior Field: Conviction leads the consumer to try the product on small
scale. Successful trial leads to buy the product.
a) Selling: Selling means’ Consumers will not buy enough of product unless it
undertakes large-scale selling and promotion efforts”. It takes an inside out
perspective. It starts with factory, focuses on company’s existing products
and calls for heavy advertisement and promotion to obtain profitable sales.
a) Surf Excel
b) Lux Soap
c) Taj Mahal Basmati Rice
d) Titan Watches
e) Close-up toothpaste
a) Idea Generation
b) Screening
c) Product Development
d) Product market Testing and business analysis
e) Commercialization
a) Introduction
b) Growth
c) Maturity
d) Decline
Product Diversification:
Product diversification means expanding range of products being offered.
Eg LG came to India with CTV and subsequently diversified to other product
range such as microwave oven, refrigerators, computer monitors etc.
Product Differentiation:
Product differentiation means differentiating your products with respect to
other products available in market. This differentiation could be in terms of
features, services, distribution etc. Fedex was first courier agency which
provided consumer facility of tracking their parcel status on net.
Selling: Selling means’ Consumers will not buy enough of product unless it
undertakes large-scale selling and promotion efforts”. It takes an inside out
perspective. It starts with factory, focuses on company’s existing products
and calls for heavy advertisement and promotion to obtain profitable sales.
Penetration Price:
Pricing program designed to use low price as major basis for stimulating
demand. Reliance mobile service is excellent example of penetration
pricing.
Skimming Pricing:
Skimming pricing means keeping price high at stage of introduction/ launch
and gradually reducing prices as time passes. Airtime in mobile phone was
kept as Rs 10/- per minutes when mobile services were launched in India,
which is now free.
34. Individual Consumer and Industrial Consumer
Individual Consumer:
Customer as a individual buying the product are known as individual
consumers.
Industrial consumer:
Consumers buying the products, as big corporate giants/ industrial houses
etc are known as industrial consumer.
Vertical Marketing:
Vertical marketing system is generally used to describe types of channels in
which distributor actions are very highly coordinated with manufacturers
marketing strategy because strong continuing, formal relationship has been
established.
Horizontal Marketing:
Products are directly sold from customers.
Packing:
Packing is meant for giving protection to product.
Packaging:
Family Brand:
Different products of company are marketed under one brand name. Amul I
family brand as it is common brand name for company’s milk powder,
butter ghee etc.
Individual Brand:
Under Individual brand, company gives separate brand name for most of its
products. HLL as several brands as Dove, Lux, Pears, Lifebouy etc.
Personal Selling:
Products are distributed directly to final buyer. Sales message delivered to
individual buyers by face to face contact. Emway is primarily in direct
selling.
Missionary Selling:
Products are distributed through wholesalers or retailers who buy the
product for resale to final buyers. Most of tyre companies, automobile
ancillary companies work under this system.
Wholesaler : A person who buys the material in bulk. Does not follow any
policies laid down by the company (in terms of profit etc.). He is not an
authorized person from the company.