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IGNOU4U.Blogspot.com IGNOU Free Solved Assignments December 2010 MS- 06: Marketing for Managers ASSIGNMENT JULY-DEC 2010 Course Code : MS-06 Course Title : Marketing for Managers Assignment Code : 06/TMA/SEM-II/2010 Coverage : All Blocks Q1 a) Explain the term Marketing and distinguish it from “Selling” with Suitable illustrations. Solution: Marketing is the process by which companies create customer interest in products or services. It generates the strategy that underlies sales techniques, business communication, and business development. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves. Marketing is used to identify the customer, to keep the customer, and to satisfy the customer. With the customer as the focus of its activities, it can be concluded that marketing management is one of the major components of business management. Marketing evolved to meet the stasis in developing new markets caused by mature markets and overcapacities in the last 2-3 centuries. [citation needed] The adoption of marketing strategies requires businesses to shift their focus from production to the perceived needs and wants of their customers as the means of staying profitable. The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions.[2] It proposes that in order to satisfy its organizational objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors. Distinguish Between Marketing and Selling: * Marketing means all customer's wants satisfying efforts concerning with planning, pricing, promoting product, pricing, promoting product and services. * Marketing accords importance to the satisfaction of consumers wants effectively. * Marketing in its initial stage decides, what the consumers want. Secondly, it decides how the commodity can be profitably produced and finally delivered to consumers for satisfying their needs. * Marketing has to take into consideration both the internal and external factors. * Efforts are buyers oriented and emphasize the satisfaction of the needs of buyers effectively. * If refers to integrated approach towards achieving long term objectives. * Profit is sought by ensuring customers satisfaction. * Marketing is a comprehensive term, which, includes selling, advertising and also the distribution of goods. Selling * Selling is the transfer of the ownership and possession of the goods to the purchases. IGNOU4U.Blogspot.com IGNOU4U.Blogspot.com * Selling emphasizes the products. * Commodities are produced and after wards efforts are made for their profitable selling. * Selling is concerned with the internal considerations regarding production and distribution of goods. It is narrower in scope. * Efforts are seller oriented and emphasize sellers needs. * It refers to piece mental approach to achieve short term goals. * Profit is sought by ensuring higher sales volume. * Selling is the part of marketing and thus not a comprehensive term. =============================================================== b) Enumerate and briefly explain the elements of marketing mix for services by taking an example of banking services. Solution: Elements of Marketing Mix Services. Putting the right product in the right place, at the right price, at the right time. It's simple! You just need to create a product that a particularly group of people want, put it on sale some place that those same people visit regularly, and price it at a level which matches the value they feel they get out of it; and do all that at a time they want to buy. Then you've got it made. There's a lot of truth in this idea. However, a lot of hard work needs to go into finding out what customers want, and identifying where they do their shopping. Then you need to figure out how to produce the item at a price that represents value to them, and get it all to come together at the critical time. But if you get just one element wrong, it can spell disaster. You could be left promoting a car with amazing fuel-economy in a country where fuel is very cheap; or publishing a textbook after the start of the new school year, or selling an item at a price that's too high – or too low – to attract the people you're targeting. The marketing mix is a good place to start when you are thinking through your plans for a product or service, and it helps you avoid these kinds of mistake. The marketing mix and the 4 Ps of marketing are often used as synonyms for each other. In fact, they are not necessarily the same thing. "Marketing mix" is a general phrase used to describe the different kinds of choices organizations have to make in the whole process of bringing a product or service to market. The 4 Ps is one way - probably the best-known way - of defining the marketing mix, and was first expressed in 1960 by E J McCarthy. The 4Ps are: * Product * Place * Price * Promotion A good way to understand the 4 Ps is by the questions that you need to ask to define you marketing mix. Here are some questions that will help you understand and define each of the four elements: IGNOU4U.Blogspot.com IGNOU4U.Blogspot.com Product * What does the customer want from the product/service? What needs does it satisfy? * What features does it have to meet these needs? o Are there any features you've missed out? o Are you including costly features that the customer won't actually use? * How and where will the customer use it? * What does it look like? How will customers experience it? * What size(s), color(s), and so on, should it be? * What is it to be called? * How is it branded? * How is it differentiated versus your competitors? * What is the most it can cost to provide, and still be sold sufficiently profitably? (See also Price, below). Place * Where do buyers look for your product or service? * If they look in a store, what kind? A specialist boutique or in a supermarket, or both? Or online? Or direct, via a catalogue? * How can you access the right distribution channels? * Do you need to use a sales force? Or attend trade fairs? Or make online submissions? Or send samples to catalogue companies? * What do you competitors do, and how can you learn from that and/or differentiate? Price * What is the value of the product or service to the buyer? * Are there established price points for products or services in this area? * Is the customer price sensitive? Will a small decrease in price gain you extra market share? Or will a small increase be indiscernible, and so gain you extra profit margin? * What discounts should be offered to trade customers, or to other specific segments of your market? * How will your price compare with your competitors? Promotion * Where and when can you get across your marketing messages to your target market? * Will you reach your audience by advertising in the press, or on TV, or radio, or on billboards? By using direct marketing mailshot? Through PR? On the Internet? * When is the best time to promote? Is there seasonality in the market? Are there any wider environmental issues that suggest or dictate the timing of your market launch, or the timing of subsequent promotions? * How do your competitors do their promotions? And how does that influence your choice of promotional activity? The 4Ps model is just one of many marketing mix lists that have been developed over the years. And, whilst the questions we have listed above are key, they are just a subset of the detailed probing that may be required to optimize your marketing mix. IGNOU4U.Blogspot.com IGNOU4U.Blogspot.com The elements of marketing mix for services by taking an example of banking services: This thesis has been conducted after approval of Swedbank, for comparing their marketing mix services with those of Rabobank. The study aimed finding differences between Swedbank’s and Rabobank’s marketing mix services. Within the subject services, the study has aimed towards finding the differences –and similarities between the services marketing mix of Swedbank and Rabobank. The study also focused on the activities held in order to support the services marketing mix. Method: The empirical findings were gathered by use of both written –and telephone interviews. Keywords were written down during the telephone interview and later constructed into full sentences. Data taken from the written interviews was viewed and re-written into complete sentences. The data has been analyzed with use of the literature review. Result & Conclusions: Both Swedbank and Rabobank seem to have a highly similar services marketing mix. Small differences were found in marketing research, products, marketing communication, Human Resources Management and servicescape. In all these aspects it showed that Swedbank uses a more personal approach than Rabobank. Suggestions for future research: The thesis’ focus has been on the services marketing mix of Swedbank and Rabobank in general. This allowed the research to go more in-depth than other subjects in the services marketing mix. To get a more clear view on the supporting methods both Swedbank and Rabobank use to support its services marketing mix, future research could be focused on the historical development of both banks which has developed the bank’s ways of doing business, the price development methods in detail, the segmentation process, the marketing communication campaigns of both Swedbank’s –and Rabobank’s internet banking, service development process and corporate identity strategy. It would also be interesting to compare these banks with their competitors in order to discover why Swedbank and Rabobank stand out more than their competitors. Contribution of the thesis: This thesis compared two of the largest banks in both home countries and shows the implications of successful services marketing mixes. This thesis is useful for financial banks and other related financial service institutions. =============================================================== 2 a) Explain the significance of marketing research for a FMCG company marketing hair care products for working women. b) Taking the example of any 100 c.c motorcycle of your choice, discuss the various stages involved in the buyer decision process. ==================================================================== 3 a) What is new product development strategy? As a product manager, discuss the various steps that you would consider in the development process of a new product. IGNOU4U.Blogspot.com IGNOU4U.Blogspot.com Solution: New product development strategy: In business and engineering, new product development (NPD) is the term used to describe the complete process of bringing a new product or service to market. There are two parallel paths involved in the NPD process: one involves the idea generation, product design and detail engineering; the other involves market research and marketing analysis. Companies typically see new product development as the first stage in generating and commercializing new products within the overall strategic process of product life cycle management used to maintain or grow their market share. Development process of a New Product. 1. Idea Generation is often called the "fuzzy front end" of the NPD process * Ideas for new products can be obtained from basic research using a SWOT analysis (Strengths, Weaknesses, Opportunities & Threats), Market and consumer trends, company's R&D department, competitors, focus groups, employees, salespeople, corporate spies, trade shows, or Ethnographic discovery methods (searching for user patterns and habits) may also be used to get an insight into new product lines or product features. * Idea Generation or Brainstorming of new product, service, or store concepts - idea generation techniques can begin when you have done your OPPORTUNITY ANALYSIS to support your ideas in the Idea Screening Phase (shown in the next development step). 2. Idea Screening * The object is to eliminate unsound concepts prior to devoting resources to them. * The screeners should ask several questions: o Will the customer in the target market benefit from the product? o What is the size and growth forecasts of the market segment/target market? o What is the current or expected competitive pressure for the product idea? o What are the industry sales and market trends the product idea is based on? o Is it technically feasible to manufacture the product? o Will the product be profitable when manufactured and delivered to the customer at the target price? 3. Concept Development and Testing * Develop the marketing and engineering details o Investigate intellectual property issues and search patent data bases o Who is the target market and who is the decision maker in the purchasing process? o What product features must the product incorporate? o What benefits will the product provide? o How will consumers react to the product? o How will the product be produced most cost effectively? o Prove feasibility through virtual computer aided rendering, and rapid prototyping o What will it cost to produce it? * Testing the Concept by asking a sample of prospective customers what they think of the idea. Usually via Choice Modelling. 4. Business Analysis * Estimate likely selling price based upon competition and customer feedback * Estimate sales volume based upon size of market and such tools as the Fourt-Woodlock equation IGNOU4U.Blogspot.com IGNOU4U.Blogspot.com * Estimate profitability and breakeven point 5. Beta Testing and Market Testing * Produce a physical prototype or mock-up * Test the product (and its packaging) in typical usage situations * Conduct focus group customer interviews or introduce at trade show * Make adjustments where necessary * Produce an initial run of the product and sell it in a test market area to determine customer acceptance 6. Technical Implementation * New program initiation * Finalize Quality management system * Resource estimation * Requirement publication * Publish technical communications such as data sheets * Engineering operations planning * Department scheduling * Supplier collaboration * Logistics plan * Resource plan publication * Program review and monitoring * Contingencies - what-if planning 7. Commercialization (often considered post-NPD) * Launch the product * Produce and place advertisements and other promotions * Fill the distribution pipeline with product * Critical path analysis is most useful at this stage 8. New Product Pricing * Impact of new product on the entire product portfolio * Value Analysis (internal & external) * Competition and alternative competitive technologies * Differing value segments (price, value, and need) * Product Costs (fixed & variable) * Forecast of unit volumes, revenue, and profit These steps may be iterated as needed. Some steps may be eliminated. To reduce the time that the NPD process takes, many companies are completing several steps at the same time (referred to as concurrent engineering or time to market). Most industry leaders see new product development as a proactive process where resources are allocated to identify market changes and seize upon new product opportunities before they occur (in contrast to a reactive strategy in which nothing is done until problems occur or the competitor introduces an innovation). Many industry leaders see new product development as an ongoing process (referred to as continuous development) in which the entire organization is always looking for opportunities. For the more innovative products indicated on the diagram above, great amounts of uncertainty and change may exist, which makes it difficult or impossible to plan the complete project before starting it. In this case, a more flexible approach may be advisable. IGNOU4U.Blogspot.com IGNOU4U.Blogspot.com Because the NPD process typically requires both engineering and marketing expertise, cross- functional teams are a common way of organizing projects. The team is responsible for all aspects of the project, from initial idea generation to final commercialization, and they usually report to senior management (often to a vice president or Program Manager). In those industries where products are technically complex, development research is typically expensive, and product life cycles are relatively short, strategic alliances among several organizations helps to spread the costs, provide access to a wider skill set, and speeds the overall process. Also, notice that because engineering and marketing expertise are usually both critical to the process, choosing an appropriate blend of the two is important. Observe (for example, by looking at the See also or References sections below) that this article is slanted more toward the marketing side. For more of an engineering slant, see the Ulrich and Eppinger, Ullman references below.People respond to new products in different ways. The adoption of a new technology can be analyzed using a variety of diffusion theories such as the Diffusion of innovations theory.A new product pricing process is important to reduce risk and increase confidence in the pricing and marketing decisions to be made. Bernstein and Macias describe an integrated process that breaks down the complex task of new product pricing into manageable elements. ==================================================================== b) What are the considerations involved in designing a marketing organisation? Solution: The considerations involved in designing a marketing organisation Step 1. Identifying and defining your Organisation If you are considering designing a marketing organisation , chances are you have already identified a problem and an ensuing informational need. Of the six steps in marketing research, this is always the first one. Your problem or issue will likely be recognized by one or more levels of management. Sometimes, further definition of the problem or issue is needed, and for that there are several tools you can use. For more information on step 1, see our resources page on the first of the marketing research steps. Step 2. Developing your approach Once your problem is better defined, you can move onto developing your approach. Generally speaking, your approach should be developed almost exclusively around a defined set of objectives. Clearer objectives developed in Step 1 will lend themselves to better approach development. Developing your approach should consist of an honest assessment of your team’s market research skills, establishing a budget, understanding your environment and its influencing factors, developing an analysis model, and formulating hypotheses. . For more information on step 2, see our resources page on the marketing research approach. Step 3. Research design Based upon a well-defined approach from Steps 1 & 2, a framework for the designing your marketing research program should be apparent. This step is the most encompassing of all steps in marketing research, requiring the greatest amount of thought, time and expertise — IGNOU4U.Blogspot.com IGNOU4U.Blogspot.com and is the point at which the less experienced will obtain assistance from an internal/external market research experts. Since the intelligence eventually gained from the research is so closely related to the selected research design, this is the single most important six steps in marketing research, and the step most vulnerable to the typical research errors. Research design includes incorporating knowledge from secondary information analysis, qualitative research, methodology selection, question measurement & scale selection, questionnaire design, sample design & size and determining data analysis to be used. For more information on step 3, see our resources page on marketing research design. Step 4. Collecting the data Often called data collection or survey fielding, this is the point at which the finalized questionnaire (survey instrument) is used in gathering information among the chosen sample segments. There are a variety of data collection methodologies to consider. For more information on step 4, see our resources page on marketing research data collection. Step 5. Performing data analysis All analysis that can be performed, from complex to simple, depends on how the questionnaire was constructed. Less complex analysis on smaller data sets can be handled with any of a number of office suite tools, while more complex analysis and larger data sets require dedicated market research analysis software. Types of analysis that might be performed are simple frequency distributions, cross tab analysis, multiple regression (driver analysis), cluster analysis, factor analysis, perceptual mapping (multidimensional scaling), structural equation modeling and data mining. For more information on step 5, see our marketing research resources page on survey data analysis. Step 6. Reporting and presentation Reporting and presentation, if not the most important of the steps in marketing research, is easily the second behind research design. All business critical information and knowledge that comes from your market research investment are limited by how they are presented to decision makers. There are as many reporting styles as there are research reports, but some are definitely better than others, and there are definitely trends to be aware of. For more information on step 6, see our resources page on marketing research reports. ==================================================================== 4 a) Discuss the stages in New Product Development process giving suitable examples Solution: The new product development process has the potential to be haphazard because of the inherent uncertainty in the process, as well as the myriad methods available for product development. Setting up an organizing framework to identify the stages in the process, and the methods applicable to each stage, should help in bringing order to the process. Our purpose in this article is to lay out a framework and identify key methods that are most likely to be useful in each stage. The focus here is on methods that use quantitative data collected mainly through the web thus bringing more validity and flexibility to the process along with speed to market. IGNOU4U.Blogspot.com IGNOU4U.Blogspot.com We envision the new product development process as an iterative multistage process as shown in Figure 1. This is a straightforward way of looking at the process that starts with idea generation, moves to development of individual features and then to full product development and finally into product testing. Of course, this is one example of how the process can be viewed and not a rigid framework. There has to be considerable fluidity in the system to accommodate feedback, skipping of stages, use of new methods and perhaps introduction of new stages. Idea Generation Many methods are available for the idea generation stage such as brainstorming, Delphi and focus groups. The basic approach is to harness creativity in some form for the development of new ideas. While there is much to recommend for the more qualitative approaches, one of the drawbacks is the lack of quantitative validity to the ideas at this stage. That is, the ideas have not been shown to have popularity in the constituency that matters – the customers. We have found that the Smart Incentives approach can provide both creativity and validation in the same step. Respondents to a survey compete with each other to produce ideas thus introducing creativity into the process. The generated ideas are then evaluated by a peer group to provide the required market validation. This approach can be useful for generating ideas on both whole products and individual features. Feature Development Feature development is the process of identifying features that would be of interest to customers. Traditional methods such as Importance Scales can be used, but may not provide sufficient discrimination between features. Pairwise comparisons of features are a straightforward method for identifying feature importance. The task is simple, but can be tedious if a large list of features needs to be culled. More recently developed methods such as Max-Diff scaling can provide a better alternative. Max-Diff is similar to pairwise comparison, except that more than two features are evaluated at a time (3-5) and the most and least preferred alternative is chosen from each set. Some advanced statistical analysis on the back end provides a score for each feature that is generally more discriminatory than a regular importance scale. Another alternative is the Kano method where the positive and negative aspect of each feature is rated in order to distinguish the “must have“ features from the “nice to have” features. The final method in this stage (that straddles this and the next stage) is the Self-explicated Method (SEM). Respondents rate the desirability of each level of each attribute as well as the importance of each attribute. Combining these two pieces of information gives attractiveness scores (similar to conjoint utilities) for each attribute level. IGNOU4U.Blogspot.com IGNOU4U.Blogspot.com Although all attributes and levels are rated by respondents (as in conjoint analysis), since they are presented individually, this method may be more appropriately seen as useful for feature development. Product Development In this stage, combinations of features are used to build or evaluate the product. The Configurator allows survey respondents to build their ideal product by selecting from a list of available features. Usually prices are provided at the feature level to ensure that respondents make realistic decisions. As respondents build their own ideal products, the most popular features and feature combinations rise to the surface, resulting in the automatic development of preference based market segments. The Optimizer is different in that respondents make choices from among fully formed products. Information from their choices is taken into account in creating successive products that are more preferred till the process finally converges on the respondent’s ideal product. This method is more appropriate when the design and packaging (i.e. the visual element) is more important. As with the Configurator, the market segments itself into preference based segments. The various flavors of conjoint (such as traditional, discrete choice, adaptive) can also be used in this stage to identify feature importance. But care has to be taken to ensure that the basic assumptions are met and that the right type of conjoint is used. Product Testing Conjoint analysis can be fruitfully used in this stage also to estimate the interest in various product combinations and especially in running market simulations. The latter ability is very important in cases where a strong competitive market exists and reasonable estimates of take rates and ability to choose the ideal combination for the market are requisites. Concept testing is much more limited than conjoint and is usually used when the product is almost set except for perhaps one or two questions, often relating to price. b) What is cyber marketing and how is it different from conventional marketing? Discuss the limitations of cyber marketing. Solution: Cyber marketing Cyber marketing has now become an indispensable segment of e-commerce as well as the internet and World Wide Web related topics. Cyber marketing simply refers to a technique of attracting potential customers by advertising your products or services through such means as websites, emails, and banners. In other words, cyber marketing is a blend of internet technology and direct marketing principles that is adopted by business owners to find profitable customers and to interact with them in order to enhance their business activities, thereby ensuring improved ROI (Return on Investment.) A number of activities are involved in cyber marketing such as online marketing, fax direct marketing, canvassing, call center direct marketing, and mobile phone marketing via SMS (Short Message Service.) However, it is not as easy you think to enhance your business profitability via cyber marketing techniques. In other words, in order to employ this marketing technique, it is important that business owners and other people engaged in the internet field such as ecommerce and marketing professionals must possess adequate skills. IGNOU4U.Blogspot.com IGNOU4U.Blogspot.com Cyber marketing includes - E-Business technology - E-Business Communication - E-Business Distribution Systems - E-Business Value Strategies - E-Business Strategy - E-Business Management - Individual as well as the diffusion of innovations - How to gather and use information - The Political, Legal, and Ethical Environment Limitations of cyber marketing: Cyber marketing requires knowing beyond the means, methodology, and the other aspects of traditional marketing. The ever-changing and highly advanced technology of the internet requires technical knowledge too. Low speed internet connections might pose a difficulty for companies who would be using highly interactive and complicated websites which uses a lot of graphics, animation and audio. If individuals and potential customers are using dial-up connections or are accessing the internet through mobile devices, they may experience an inconvenient delay in content delivery aspect internet marketing is heavily relying on. They may not be able to fully appreciate the website and may opt to choose other providers. While comfort and convenience is the primary reason why most people are switching to transactions online, this aspect is worth noting. Sometimes, error messages also appear. These websites which are overly complicated can have some bugs which can affect their overall internet marketing campaign. While Cyber marketing cannot allow prospective buyers to touch, or smell or taste or 'try on' the products, internet marketing however provides some protection by offering a return policy on certain items. Either traditional or internet marketing, marketing does have its ethics to live by. Cyber marketing not only serves their respective companies well, but also serves its customers by providing other information such as pick up services, or promos, and other 'come ons' that puts them on a more advantageous edge over their competitors. On the other hand, there are other executives who are not fully convinced of the advantages of internet marketing. They would cite inability to measure impact, lack of internal support and technical maintenance and challenge in seeking approval from higher management to pursue internet marketing. Basically, except for the last one probably, these things are unfounded. With the database and system available online, Cyber marketing can even provide a venue for market research and analysis. They can gather information and data from their customers that cans serve as their reference for the study. They can also avail of outsourcing businesses to handle the technical infrastructure for them almost seamlessly. IGNOU4U.Blogspot.com IGNOU4U.Blogspot.com May be the considerable challenge really lies on the preparedness of the company to launch a full blown internet marketing campaign. If they are not ready and launched an internet marketing program haphazardly, they can only experience complaints, which can eventually lead to poor reviews, thus, making its probabilities un-maximized.While Cyber marketing is very promising and has indeed produced good results already for many businesses around the world, some of the responsibility now lies with the people managing it. Just like any other type or marketing, they can put it to its maximum extent for productivity, or perform poorly by being mediocre. While the products and pricing can really be an edge, convenience is every important for online businesses and internet marketing can do a lot to augment that. By being technically responsive to the needs of a typical online consumer, Cyber marketing can indeed be the turning point for any online business. ================================================================ ================================================================ =================================The End ========================= IGNOU4U.Blogspot.com