Master of Business Administration - MBA Semester 2 MB0046 MARKETING MANAGEMENT Assignment Set- 2

1. What is product mix? What are the strategies involved in product mix and product line? The product mix of a business includes product lines and individual products. A product line is a set of products in the product mix that are closely interrelated either because they serve in a similar way, sold to the similar client groups or have same price range. A product is a unique component in the product line that is different in size, cost, look, or some other attribute. Product choices at these levels are normally of 2 sorts: Those that have variety and range of the product line and those that are modified in the product mix occur over time. Product Mix is the total number of product choices a company offers their customer. If you make muffins, and you offer Blueberry and Cranberry, your product mix has 2 choices. The product mix grows as the number of features on the product grows. A true evaluation of the mix can ONLY be done with a feature/option level analysis. That is because customers buy features and options. The strength of the mix is based on how well the feature choices are capturing sales and market demand. Strategies involved in Product Mix and Product Line When the product is a part of product-mix, there are five kinds of strategies involved: I. Product Line Pricing In product line pricing, management must decide on the price steps to set between various products in a line. This should take into

account the differences in products features, customer evaluations, competitors prices etc. II. Optional-Product Pricing The pricing of optional or accessory products along with the main product. For example, a car buyer may choose to order a CD changer as an optional product. III. Captive-Product Pricing Setting a price for products which must be used along with the main product. For example, HP makes printers and cartridges. It makes very low margins on its printer (the main product) but very high margins on cartridges . IV. By-Product Pricing Setting a price for the by-products. Like in processing meats, petroleum products, chemicals etc. Using by-product pricing, the manufacturer will find a market for the by-products and should accept any price that covers more than the cost of storing and delivering them. For example, at Alba, water is obtained as a by-product while manufacturing aluminum. This water can now be sold to the market. V. Product Bundle Pricing Combining several products and offering the bundle at a reduced price. For example, fast food restaurants bundle a burger, French fires and soft drink at a combo price.

2.

What is a distribution channel? Explain the factors to be

considered while setting up a distribution channel. A path through which goods and services flow in one direction (from vendor to the consumer), and the payments generated by them that flow in the opposite direction (from consumer to the vendor). A marketing channel can be as short as being direct from the vendor to the consumer or may include several interconnected intermediaries such as wholesalers, distributors, agents, retailers. Each intermediary receives the

item at one pricing point and moves it to the next higher pricing point until it reaches the final buyer. Also called channel of distribution or marketing channel. Firm level objectives: It is not enough to simply state a firms goal as maximizing the present value of total profit since this does not differentiate it from other firms and says nothing about how this objective is to be achieved. Instead, a business and marketing plan should suggest how the firm can best put its unique resources to use to maximize stockholder value. A number of resources come into playe.g.,

Distinctive competenciesknowledge of how to manufacture, design, or market certain products or services effectively; Financialpossession of cash or the ability to raise it; Ability and willingness to take risk; The image of the firms brand; People who can develop new products, services, or other offerings and run the needed supports; Running facilities (no amount of money is going to get a new microchip manufacturing plant started tomorrow); and Contacts with suppliers and distributors and others who influence the success of the firm.

Market balance: It is essential that different firms in the same business not attempt to compete on exactly the same variables. If they do, competition will invariably degenerate into pricethere is nothing else that would differentiate the firms. Thus, for example, in the retail food market, there are low price supermarkets such as Food 4 Less that provide few if any services, intermediate level markets like Ralphs, and high-end markets such as Vons Pavillion that charge high prices and claim to carry superior merchandise and offer exceptional service

Risk: In general, firms that attempt riskier venturesand their stockholders expect a higher rate of return. Risks can come in many forms, including immediate loss of profit due to lower sales and long term damage to the brand because of a poor product being released or because of distribution through a channel perceived to carry low quality merchandise. Brand level objectives: Ultimately, brand level profit centers are expected to contribute to the overall maximization of the firms profits. However, when a firm holds several different brands, different marketing and distribution plans may be required for each. Several variables come into play in maximizing value. Profits can be maximized in the short run, or an investment can be made into future earnings. Product profit can be measured in several ways. If you sell a computer that cost $950 to make for $1,000, you are making only a 5% gross profit. However, selling a product that cost $5 to make for $10 will result in a much higher percentage profit, but a much lower absolute margin. A decision that is essential at the brand level is positioning. Options here may range from a high quality, premium product to a lower priced value product. Note here that the same answer will not be appropriate for all firms in the same market since this will result in market imbalancethere should be some firms perceiving each strategy, with others being intermediate. Distribution issues come into play heavily in deciding brand level strategy. In order to secure a more exclusive brand label, for example, it is usually necessary to sacrifice volumeit would do no good, for Mercedes-Benz to create a large number of low priced automobiles. Some firms can be very profitable going for quantity where economies of scale come into play and smaller margins on a large number of units add upe.g., McDonalds survives on much smaller margins than upscale restaurants, but may make larger profits because of volume. Some firms choose to engage in a niching strategy where they forsake most customers to focus on a small segment where less competition exists (e.g., clothing for very tall people).

In order to maintain ones brand image, it may be essential that retailers and other channel members provide certain services, such as warranty repairs, providing information to customers, and carrying a large assortment of accessories. Since not all retailers are willing to provide these services, insisting on them will likely reduce the intensity of distribution given to the product. Product line objectives: Firms make money on the totality of products and services that they sell, and sometimes, profit can be maximized by settling for small margins on some, making up on others. For example, both manufacturers and retailers currently tend to sell inkjet printers at low prices, hoping to make up by selling high margin replacement cartridges. Here again, it may be important for the manufacturer that the retailer carry as much of the product line as possible. Distribution Objectives Objectives: A firms distribution objectives will ultimately be highly related some will enhance each other while others will compete. For example, as we have discussed, more exclusive and higher service distribution will generally entail less intensity and lesser reach. Cost has to be traded off against speed of delivery and intensity (it is much more expensive to have a product available in convenience stores than in supermarkets, for example). Narrow vs. wide reach: The extent to which a firm should seek narrow (exclusive) vs. wide (intense) distribution depends on a number of factors. One issue is the consumers likelihood of switching and willingness to search. For example, most consumers will switch soft drink brands rather than walking from a vending machine to a convenience store several blocks away, so intensity of distribution is essential here. However, for sewing machines, consumers will expect to travel at least to a department or discount

store, and premium brands may have more credibility if they are carried only in full service specialty stores. Retailers involved in a more exclusive distribution arrangement are likely to be more loyali.e., they will tend to Recommend the product to the customer and thus sell large quantities; Carry larger inventories and selections; Provide more services Thus, for example, Compaq in its early history instituted a policy that all computers must be purchased through a dealer. On the surface, Compaq passed up the opportunity to sell large numbers of computers directly to large firms without sharing the profits with dealers. On the other hand, dealers were more likely to recommend Compaq since they knew that consumers would be buying these from dealers. When customers came in asking for IBMs, the dealers were more likely to indicate that if they really wanted those, they could have themBut first, lets show you how you will get much better value with a Compaq. Distribution opportunities: Distribution provides a number of opportunities for the marketer that may normally be associated with other elements of the marketing mix. For example, for a cost, the firm can promote its objective by such activities as in-store demonstrations/samples and special placement (for which the retailer is often paid). Placement is also an opportunity for promotione.g., airlines know that they, as prestige accounts, can get very good deals from soft drink makers who are eager to have their products offered on the airlines. Similarly, it may be useful to give away, or sell at low prices, certain premiums (e.g., T-shirts or cups with the corporate logo.) Other opportunities involve parallel distribution (e.g., having products sold both through conventional channels and through the Internet or factory outlet

stores). Partnerships and joint promotions may involve distribution (e.g., Burger King sells clearly branded Hershey pies). Deciding on a strategy. In view of the need for markets to be balanced, the same distribution strategy is unlikely to be successful for each firm. The question, then, is exactly which strategy should one use? It may not be obvious whether higher margins in a selective distribution setting will compensate for smaller unit sales. Here, various research tools are useful. In focus groups, it is possible to assess what consumers are looking for an which attributes are more important. Scanner data, indicating how frequently various products are purchased and items whose sales correlate with each other may suggest the best placement strategies. It may also, to the extent ethically possible, be useful to observe consumers in the field using products and making purchase decisions. Here, one can observe factors such as (1) how much time is devoted to selecting a product in a given category, (2) how many products are compared, (3) what different kinds of products are compared or are substitutes (e.g., frozen yogurt vs. cookies in a mall), (4) what are complementing products that may cue the purchase of others if placed nearby. Channel membersboth wholesalers and retailersmay have valuable information, but their comments should be viewed with suspicion as they have their own agendas and may distort information.

3.

Discuss the communication development process with examples.

Development Communication, has been alternatively defined as a type of marketing and public opinion research that is used specifically to develop effective communication or as the use of communication to promote social development. Defined as the former, it often includes computerized linguistics analysis of verbatim responses to qualitative survey interviews and

may, at times also involved consumer psychological "right brain" (emotional) research techniques. Defined at the latter, it refers to the practice of systematically applying the processes, strategies, and principles of communication to bring about positive social change. As most providers of "communication development" research use proprietary approaches that cannot be elaborated upon without revealing proprietary trade secrets, the remainder of this article describes the latter definition. The practice of development communication can be traced back to efforts undertaken in various parts of the world during the 1940s, but the widespread application of the concept came about because of the problems that arose in the aftermath of World War II . The rise of the communication sciences in the 1950s saw a recognition of the field as an academic discipline, with Daniel Lerner, Wilbur Schramm, and Everett Rogers being the earliest influential advocates. The term "Development Communication" was first coined in 1972 by Nora C. Quebral, who defines the field as "the art and science of human communication linked to a society's planned transformation from a state of poverty to one of dynamic socio-economic growth that makes for greater equity and the larger unfolding of individual potential." The theory and practice of development communication continues to evolve today, with different approaches and perspectives unique to the varied development contexts the field has grown in.[3] Development communication is characterized by conceptual flexibility and diversity of communication techniques used to address the problem. Some approaches in the tool kit of the field include: information dissemination and education, behavior change, social marketing, social mobilization, media advocacy, communication for social change, and participatory development communication.

Examples One of the first examples of development communication was Farm Radio Forums in Canada. From 1941 to 1965 farmers met in groups each week to listen to special radio programs. There were also printed materials and prepared questions to encourage group discussion. At first this was a response to the Great Depression and the need for increased food production in World War II. But the Forums also dealt with social and economic issues. This model of adult education or distance education was later adopted in India and Ghana. Instructional television was used in El Salvador during the 1970s to improve primary education. One of the problems was a lack of trained teachers. Teaching materials were also improved to make them more relevant. More children attended school and graduation rates increased. In this sense the project was a success. However, there were few jobs available in El Salvador for better-educated young people. In the 1970s in Korea the Planned Parenthood Federation had succeed in lowering birth rates and improving life in villages such as Oryu Li. It mainly used interpersonal communication in women's clubs. The success in Oryu Li was not found in all villages. It had the advantage of several factors including a remarkable local woman leader and visits from the provincial governor. A project of social marketing in Bolivia in the 1980s tried to get women in the Cochabamba Valley to use soybean recipes in their cooking. This was an attempt to deal with chronic malnurishment among children. The project used cooking demonstrations, posters and broadcasts on local commercial radio stations. Some people did try soybeans but the outcome of the project is unclear.

In 1999 the U.S. Government and D.C. Comics planned to distribute 600,000 comic books to children affected by the Kosovo War. The comic books are in Albanian and feature Superman and Wonder Woman. The aim is to teach children what to do when they find an unexploded land mine left over from Kosovo's civil war. The comic books instruct children not to touch the antipersonnel mines and not to move, but instead to call an adult for help. In spite of the 1997 Ottawa Treaty which attempts to ban land mines they continue to kill or injure 20,000 civilians each year around the world. Since 2002, Journalists for Human Rights, a Canadian based NGO, has operated long term projects in Ghana, Sierra Leone, Liberia, and the DR Congo. jhr works directly with journalists, providing monthly workshops, student sessions, on the job training, and additional programs on a country by country basis.

4.

Select any mobile handset and mobile company and then evaluate

its positioning strengths or weakness in terms of attributes, benefits, values, brand name and brand equity HTC is one of the leading manufacturers of PDAs and smart phones around the world. It is one of the fastest growing companies in the world and maximizing its market share rapidly. SWOT Analysis SWOT is the tool to see that where organization stands, which areas required improvement, which areas required serious consideration, which would be the source of growth, which things need avoidance and so on. The SWOT of HTC will help to understand the position of HTC in the market.

Strengths It is the leading maker of PDAs smart phones in the world. It is establishing in the world rapidly and attracting more and more customers from all around the world. It has successfully recognized its brand name and has got the good image about the product quality. Its products are considered as reliable products and its gaining more and more success rapidly. The research and development in HTC has been given more importance as it is the way to know what customers want. There is the strong set up of research and development in HTC. The portfolio of HTC is quite wide it has made 42 smart phones product up till now. The customer base of HTC is also very wide as it caters the customer national and international both and the no. of customers also increasing as the time passes. Weaknesses As its weakness, HTC is not a very much recognized brand in the market. Its competitors, which are Nokia, Blackberry, Apple etc. are way much popular and have acquired a big share of market. Another weakness is that, they got a very small range of cell phones models as compared to their competitor, Nokia, which has got a huge variety of smart phones, from cheapest to most expensive one. Opportunities HTC is providing Touch Screen Cell Phones, which are very much in demand these days, most of the people, who use expensive cell phones, goes for Touch Screen. On the other side, Since HTC collaborated with Google and launched their cell phones with Google Android OS install in it, their market also got increased. It is also said that, because of the name of Google, HTC got popularity. Google popularity plays a huge role in the success of HTC.

3G technology has been launched all over the world, and is getting launched in other countries as well. Since HTC cell phones have got 3G technology support, so it is an opportunity for HTC company that where ever the 3G technology launches, HTCs cell phones demands would raise their. Threats The major threat to HTC, or any other Smartphone company, is a very much popular and highly in-demand brand, Apple iPhone. It is a big hindrance in the demand of HTC cell phones. Apart from that, the financial crunch could also be the threat for the company. Thats because HTC smart phones are expensive and are not affordable for many of the smart phones users. On the other side Nokias smart phones are way cheaper, and are providing the same characteristics, which a Smartphone should have. So lot of people prefers Nokia on HTC.

5.

What is retailing? Explain the functions and different types of

retailing with its key features

Retail consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser.[1] Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the

supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as a public utility, like electric power. Shops may be on residential streets, shopping streets with few or no houses or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Online retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order, are forms of nonshop retailing. Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase.

A retail business is a store that sells merchandise to the public. Usually, retail businesses have a physical location, but Internet stores have changed that, so a retail business doesn't necessarily have to have a physical location any longer. In addition, coffee shops and gas stations, which don't sell merchandise such as clothing or consumer electronics, are retail businesses too. Retail Stores These include traditional department stores such as Sears and J.C. Penney. Later, discount retail department stores such as Walmart and Target entered the scene, as well as specialty stores such as PetSmart and Office Max.

Retailing Without a Store Besides the Internet, there are retail stores without a store, such as sales through TV home shopping and door-to door sellers such as Avon, which were around before the Internet. Retailing Through Mail Order Retail sales through mail order usually come through catalogs that companies send through the mail. These catalogs include those that sell gift baskets that you send to loved ones for the holidays. Retailing Through the Internet Now that the Internet is here, many businesses run strictly online. Amazon.com is an example of an online retail department store that never had a bricks-and-mortar presence. Retailing Through Vending Machines Another way to retail is through vending machines. This is a very old concept in retailing, considering it dates back more than a century.

6.

a.

What is CRM? What are its objectives?

Customer relationship management (CRM) is a widely-implemented strategy for managing a companys interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processesprincipally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service.[1] Customer relationship management describes

a company-wide business strategy including customer-interface departments as well as other departments Objectives of CRM CRM, the technology, along with human resources of the company, enables the company to analyze the behavior of customers and their value. The main areas of focus are as the name suggests: customer, relationship , and the management of relationship and the main objectives to implement CRM in the business strategy are:

To simplify marketing and sales process To make call centers more efficient To provide better customer service To discover new customers and increase customer revenue To cross sell products more effectively

The CRM processes should fully support the basic steps of customer life cycle . The basic steps are:

Attracting present and new customers Acquiring new customers Serving the customers Finally, retaining the customers

b.

Write a short note on Brand development.

Though brand development is by no means a new idea, today consumers have more access to information and more choices than ever before. The result is higher expectations, and the brands message must captivate the consumer immediately. Companies seeking to experience long-term success will have to

create the most compelling, relevant, and consistent brand experiences for their customers. Remember: You cant escape your brand. Either you make the customer experience, or it gets made without you. Prophet Corp. In order to successfully develop the most effective branding strategy, a firm understanding of what a brand is must first be answered. The development of a branding strategy must begin with identifying the brands (the business) core values. These are qualities which an organization deems most important. For instance, an organization or business may identify its core values to include: honesty, integrity, excellent communication, and client satisfaction. Though these values are usually never revealed to the public, they are evident in every aspect of the organizations business routine, from customer service, to direct marketing, to website design, to teleconferences, to the treatment of its employees and strategic partners. This conveys a consistent perception to the target audience in every medium of communication that is used. Consideration for these values should not be taken lightly for these values represent the creed for the business and become the cornerstone for developing the brands proposition. And though the brands proposition may change from time to time, the brands core values should never change. An important aspect of brand development is to create a positive emotional attachment to the brand which creates a response in its audience without the audience seeing the product or directly experiencing the service. Again from Bedburys book; think Godiva chocolates for a moment: the very name, perhaps even the logo, conjures up an image of sinful indulgence. Yes, it represents chocolate or ice cream, but it is the feeling and the anticipation of that feeling that the brand conveys most compellingly.

Positive emotional bonding comes from a mutually beneficial relationship built on intrigue, trust, understanding, and support. These are qualities that often separate colleagues from friends, and friends from family. Build your brand promise on the basis that your product will deliver positive, relevant, and unique emotional qualities. And of course these qualities will be dictated by the current needs and desires of your target audience. This may be the most difficult and often overlooked aspect of successful brand development. This is also where a lack of comprehensive research into identifying the target audiences needs and desires can either make or break an attempt at developing a positive emotional attachment between the brand and its audience. If not done effectively, a seemingly insurmountable communication gap will develop between the internal brand perception and the audiences actual perception. Your brand proposition should convey a message that is: 1. Aligned with the brands core values 2. Clear, Engaging, Unique, and Relevant to your target audience 3. Able to incorporate an element of positive emotional attachment that is better than just "good 4. Echoed within your business, internally and externally 5. Consistent across multiple marketing and advertising mediums (print, online presence, etc) 6. Continually reinforced within the organization so that your employees consistently deliver what is promised 7. Echoed by strategic partners 8. Able to adapt to a changing marketplace