Q.1 Marketing involves satisfaction of consumer needs. Elucidate the statement. What is Marketing?

Simply seen marketing is a set of business activities that facilitate movement of goods and servicesfrom producers to consumers. It is an ongoing process of 1. Discovering and translating consumer n eed s in to p rod ucts and serv ices, 2 . Creating d eman d s f or th em, serving th e custo mer and h isd e m a n d t h r o u g h a m a r k e t i n g p r o g r a m m e o f p r o m o t i o n a n d 3. Distribution to fulfill the companys marketing goals in a competitive environment.It is evid en t that the custo mer, n eeds and wants are v ery i mp o rtan t asp ects of mark eting as of today. Customer focus is the very essence of marketing.In th is era of rapid ch ang es, it is ma rk eting which k eeps the b usiness in clo se con tact with its economic, political, social and technological environment, as it informs the business of events andchanges that take place in the environment.A me rican Marketing Association (AMA) off ers the fo llowin g def in ition of Marketing . (AMA2004) Definition: Marketing is an organization function and a set of processes for creating,communicating and delivering value to customers and for managing customer relationships inways that benefit the organization and its stake holders. The Chartered Institute of Marketing defines Marketing as:Mark eting is the man ag emen t process respon sib le fo r iden tif ying , anticip ating and satisf yin g customer requirements, profitably.Hav in g und erstood wh at a Mark et is and wh at is Marketing , we will n ow lo ok at wh at is an exchange and also the exchange process.

1.3 The Exchange Process Todays marketing system has evolved from the time of a simple barter of goods through the stageof a money economy to todays complex marketing. Throughout all these stages, exchanges have been taking place. In small town and villages there were ar tisans such as carpenters, weavers, potters blacksmiths, barbers and others such service providers who produced goods and servi cesn ot on ly fo r their o wn consu mp tion bu t also fo r ex changin g with o th ers what th ey could no t produce but needed. This was barter system of exchange. For a transaction to take place betweentwo parties, it was n ecessary that there be n eeds and wan ts o n bo th s id es. Th e d ev elop men t of m o n e y c a m e t o a c t as a common medium, and the exchange process b e c a m e v e r y e a s y a n d convenient. Fig.1.1. below shows the exchange process under money economy in which productsa nd serv ices f low to th e mark et f ro m the p ro du cers and se llers and mo n ey, th e valu e of the products and services, flow from the buyers to the sellers. Figure 1.1

Thu s, ex ch ang e is an act of obtain ing a d esired p rod uct o r service f ro m so meon e b y off ering something in return. This exchange process will continue as long as human society exists becausesatisfying ones needs is the basic instinct of human beings and no one can produce everything thathe /she needs. For an exchange process to take place, between two or more parties, few conditionshave to be met. They are:1. Each party has something that could be of value to other party.2. Each party has desire, willingness and ability to exchange.3. Each party is capable of communicating and delivering.4. Each party has the freedom to accept or reject the offer.

Q.2 Conduct a SWOT analysis for any one automobile brand of your choice. How will this analysishelp in planning marketing strategies for the brand? SWOT Analysis - Tata Motors Limited The company began in 1945 and has produced more than 4 million vehicles. Tata Motors Limitedis the larg est car p rodu cer in Ind ia. It man ufactures co mmercial and p assenger v eh icles, and employs in excess of 23,000 people. This SWOT analysis is about Tata Motors. Strengths The internationalization strategy so far has been to keep local managers in new acquisitions, and toonly transplant a couple of senior managers from India into the new market. The benefit is thatTata has been able to exchange expertise. For example after the Daewoo acquisition the Indiancompany leaned work discipline and how to get the final product 'right first time.'Th e co mp an y h as a strateg y in p lace fo r th e next stag e of its exp ansion . Not on ly is it fo cusingu pon n ew produ cts and acq uisitio ns, bu t it also has a p rog ra mmed of in tensive man ag emen t development in place in order to establish its leaders for tomorrow.The company has had a successful alliance with Italian mass producer Fiat since 2006. This hasenhanced the product portfolio for Tata and Fiat in terms of production and knowledge exchange.Fo r ex amp le, the Fiat Palio Style was laun ch ed by Tata in 2007 , and the co mp anies h av e an agreement to build a pick-up targeted at Central and South America. Weaknesses The company's passenger car products are based upon 3rd and 4th generation platforms, which putTata Motors Limited at a disadvantage with competing car manufacturers.Despite buying the Jaguar and Land Rover brands (see opportunities below); Tata has not got af oo tho ld in th e luxu ry car segmen t in its do mestic, Indi an market. Is th e brand associated withcommercial veh icles and

lo w-co st p asseng er cars to the exten t th at it has iso lated itself fro mlucrative segments in a more aspiring India?One weakness which is often not recognized is that in English the word 'tat' means rubbish. Wouldthe brand sensitive British consumer ever buy into such a brand? Maybe not, but they would buyinto Fiat, Jaguar and Land Rover (see opportunities and strengths). Opportunities In the summer of 2008 Tata Motor's announced that it had successfully purchased the Land Rover and Jaguar brands from Ford Motors for UK 2.3 million. Two of the World's luxury car brandhave been added to its portfolio of brands, and will undoubtedly off the company the chance tomarket vehicles in the luxury segments.Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004 for aroundUSD $16 million. Nano is the cheapest car in the World - retailing at little more than a motorbike. Whilst the Worldis getting ready for greener alternatives to gas-guzzlers, is the Nano the answer in terms of conceptor brand? Incidentally, the new Land Rover and Jaguar models will cost up to 85 times more thana standard Nano!The new global track platform is about to be launched from its Korean (previously Daewoo) plant.Again, at a time when the World is looking for environmentally friendly transport alternatives, isnow the right time to move into this segment? The answer to this question (and the one above) isthat new and emerging industrial nations such as India, South Korea and China will have a thirstf o r lo wcost passeng er and co mmercial veh icles. Th ese are t h e oppo rtun ities. Ho wever th ecompany has put in place a very proactive Corporate Social Responsibility (CSR) committee toaddress potential strategies that will make is operations more sustainable.The range of Super Milo fuel efficient buses are powered by super-efficient, ecofriendly engines.The bus has optional organic clutch with

booster assist and better air intakes that will reduce fuelconsumption by up to 10%. Threats Other co mp eting car man uf actu rers h av e been in th e p assenger car bu sin ess fo r 40 , 50 o r mo reyears. Therefore Tata Motors Limited has to catch up in terms of quality and lean production.Sustainability and environmentalism could mean extra costs for this low-cost producer. This couldimpact its underpinning competitive advantage. Obviously, as Tata globalizes and buys into other brands this problem could be alleviated.Since the company has focused upon the commercial and small vehicle segments, it has left itself o p en to co mp etition fro m ov erseas co mp an ies fo r th e e mergin g Indian lux ury seg men ts. Fo r example ICICI bank and DaimlerChrysler have invested in a new Pune-based plant which will build 5000 new MercedesBenz per annum. Other players developing luxury cars targeted at theIn dian mar k et in clu de Fo rd , Hond a and To yota. In f act th e entire Indian mark et h as b eco me a target for other global competitors including Maruti Udyog, General Motors, Ford and others.Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts. The price of steel and aluminum is increasing putting pressure on the costs of production.Many of Tata's products run on Diesel fuel which is becoming expensive globally and within itstraditional home market. Q.3 Explain in brief the process involved in personal selling. Personal Selling Personal Selling Involves the communication technique in which sales people build the personal relationship withcustomers to generate the value for the organization.The value may be sales and benefits to the customer. The value may not be only financial gains, but it may be providing the information to customer. For

example, Medical representatives of CIPLA provide the information to doctors and they dont actually sell the medicine to them. Nature of Personal Selling Personal selling has experienced a paradigm shi f t . T h e r e w a s a t i m e w h e n s a l e s j o b s w e r e perceiv ed to be low. The emergence of modern corporations and rise of new India is i n dire needof professional selling. Nowadays it is not mere selling. It is using professional skills to have along term relationship with the customers to generate the value continuously. This has resulted inth e g ro wth of p rof ession al sales fo rce. Even co mp anies th at b elieved in mar k eting th rough channels entered into personal selling. For example, Hindustan Unilever Limited (HUL) which ish av ing retail and wholesale ch ann els, recently en tered into the n etwo rk mark eting . Th ere are various types of sales jobs used to sell the product of the organizations.They are:1. Delivering: The job of sales executive is to make the products reach to the customer destination.For ex amp le, a sales p erson wo rk ing fo r tran spo rt o r Cou rier Co mp an y h as to mak e th e goo ds reach the customer places.2. Inside order taker: Sales executives in the retail stores like Subhiksha help the customer inidentifying the product. The person in the hotel takes the order and serves better.3. Outside order: These are field executives who go to the customer place and get the order.4. Missionary selling: Sales execu tiv es p ro vid e the info rmatio n and p ro mo t e th e co mp an y products like for example- medical representatives.5.

Sales executives: In this position, th e sales ex ecu tiv e is techn ical exp ert and wo rk s withno ntechnical sales ex ecu tiv es to p rov ide assista n ce on technical info rmation sou ght b y th ecustomer. Personal Selling Approaches 1. Stimulus response selling: In this approach, sales person provides the stimulus and expects ther espo nse fro m th e bu yer. This p ro cess will con tinue till pu rch ase d ecision h as b een mad e. Fo r example, salesperson will tell the customer that the price offer for a particular product is availablefor only 2 days and then might wait for the customer to accept the offer within 2 days.2. Need satisfaction selling: In this approach, sales executive identifies the need of the product inth e custo mer an d co nfir ms it. He p rov id es the v arious offering s to th e custo mer to cho ose and continues this process till the purchase has been made. For example, if a customer is looking for specific features in a product, then salesperson will show him the products having those featuresand will suggest to him variety of options to choose from.3. Problem solving selling: Th is app ro ach is u sed wh en the cu sto mer f aces the pu rch asing problem. In this approach, sales executive defines the problem of the customer, generates thea l t e r n a t i v e s o l u t ion and evaluates them. Then he works with the p a r t i c u l a r s o l u t i o n t i l l t h e customer purchase. For example, when customer is not sure about the type of brand he wants or t h e k i n d o f f e a t u r e s h e n e e d s i n the product, then the salesperson will tell him about o t h e r particular brands available or in the second case, will id entify his product needs first and thensuggest products having those features that will fulfill his needs.

Situations when personal selling is favorable 1. The price of the product is high, technical in nature and needs demonstration. 2. The product is in the introductory stage of the product life cycle.3. Organization does not have enough money for advertisement campaigns.4. Product can be customized and5. Market is concentrated.

Q.4 Describe the stages of business buying process.

. Steps in Business Buying ProcessFigure 6.1Stage 1: Problem recognition 1. Problem can be identified from either internal stimuli or external stimuli. Company would liket o l a u n c h n e w product hence it searches for the suppliers who c a n s u p p l y t h e m a t e r i a l a n d equipments required for the new product. A large printing company may find that it can set up anex clu siv e d esign section as a p rof it center. Fo r this it may want h igh end d esign software and systems. It is possible that the system requirement s can only be provided by Apple Macintosh.2. External stimuli like trade show, conference also helps the company to identify the problem. Stage 2: Need description: After fin alizing the p roblem, co mp an ies will d efin e n eed descrip tion . Th e need d escription includes1. Characteristics and quantity of the needed item.2. For the complex products team assessment is required.3. The required items are assessed on the basis of reliability, durability, price, and other attributesneeded in the item. Stage 3: Product specification:

Organizations develop detailed product specification with value analysis. In the value AnalysisCompany analyzes the components and their production process. Here emphasis is given to findthe alternative methods of producing the components and finding the optimum method that suitsthe company.

Stage 4: Supplier search Th e bu yer no w tries to id en tify the mo st app rop riate suppliers. The bu yer can ex amine trad ed irecto ries, do a co mp u ter search , phone oth er co mp an ies fo r reco mmen d ation s, watch trad eadv erti semen ts, and atten d trade shows. Th e supp liers task is to get listed in majo r bu sin ess directories, develop a strong advertising and promotion program, and build a good reputation inthe mark etplace. Supp liers who lack the requ ired p rodu ction cap acity or suffer f ro m a poo r reputation will be rejected . Those who qu alif y may b e v isited to ex amine th eir man uf actu ring facilities and meet their personnel. Qualified suppliers are shortlisted for further process.Stage 5: Proposal solicitationThe buyer will now invite qualified suppliers to submit proposals. Some suppliers will send only acatalog or a sales representative. Where the item is complex or expensive, the buyer requires adetailed written proposal from each qualified supplier. The buyer will invite qualified suppliers tomake formal presentations.Thus business marketers must be skilled in researching, writing and presenting proposals. Their proposals should be marketing documents, not just techni cal documents. Their oral presentationsshould inspire confidence. They should position their companys capabilities and resources so thatthey stand but from the competition.Stage 6: Supplier

selectionTh is stag e is also kn own as v endo r selection . Du ring this stage co mp an ies wil l prep are thech ecklist. Weig htag es are assigned ag ainst each ch eck list po in t and ev aluated . So me of th e impor tant attributes those commonly found in the vendor evaluations area. Quality b. Deliveryc. Communicationd. Competitive prices.e. Servicingf. Technical adviceg. Performance historyh. Reputation Stage 7: Order routine specifications: The buyer now negotiates the final order with t h e c h o s e n s u p p l i e r ( s ) , l i s t i n g t h e t e c h n i c a l specif ications; the quantity needed, the expected time of delivery, return policies, warranties andso on. In case of MRO items (Maintenance, Repair and Operating ite ms), buyers are increasinglymoving towards blanket contracts rather than periodic purchase orders. Writing a new purchaseorder each time stock is needed, is expensive. Nor does the buyer want to write fewer and larger purchase orders because that means carrying more inven tories. A blanket contract establishes along-term relationship where the supplier promises to re-supply the buyer as needed on agreed price terms over a specified period of time. The stock is held by the seller, hence the namestockless purchase plan. The buyers computer automatically sends an order to the seller whenstock is needed. This locks the supplier with the buyer and makes it difficult for out-suppliers to break in unless the buyer becomes dissatisfied with the in-suppliers prices, quality or service. Stage 8: Performance review In this stag e o rg an ization rev iew th e perfo r man ce of the supp liers. Th is will h elp it to d ecid e whether to continue with existing suppliers or should search for the new vendor.These eight stages are very much essential for new task but not necessary for straight re-buy or m o d i f i e d

re-buy. To know which stages are important in t h e n e w t a s k , a s t r a i g h t r e - b u y o r modified re-buy we will study Buy- grid ModelBuy Grid modelBuy grid model is developed to understand the business buying process in three different business buying situations:Table 6.2

Q.5 Why is rural market important? What should marketers keep in mind when catering to this market?

Th e follo wing table will g iv e yo u so me id ea abou t the emerg ence of the ru ral ma rk et wh ich marketers may ignore at their own peril. Why is rural marketing different? This has to be understood in the light of the 4Ps or 7Ps of marketing. Imagine that you are trying toe s t a b l i s h a Coffee Caf Day Outlet in a remote village in M a h a r a s h t r a . W i l l t h a t b e v i a b l e proposition? Yet there may be consumers for coffee in the rural sector too. The offering has to suitthe sector. Similarly an ice cream parlor may not be a workable idea in a village or a cluster of v illag es if there is no electricity con nection there. The ice cream cart v endo r is a b etter idea.Keep ing th ese situ atio ns in persp ective, on e can draw so me infer en ces wh y ru ral mark eting isdifferent.1. Accessibility and mobility: This applies both for the supplier and the consumer. The movemento f th e p eop le is restricted b y th e lack of su rf ace roads and the mo d e of tran spo rt. Th ere are restrictions by way of visibility during night.2. Average income level of consumers: The average wage earners are characterized by lower per capita income and disposable income in comparison to the urban.3. Geographical distances: The living quarters are separated more than they are in the

urban areas.The cluster of villages is also segregated by distances.4. Literacy level: On an average the literacy level in the rural sector is lower in comparison to theurban sector.T h e r e c o u l d b e s e v e r a l o t h e r i s s u e s which are specific to the rural sector. These m a y f o r c e marketers to take a different approach for the entire marketing process or at least some of them asagainst the urban sector.

Q.6 Explain the core concepts of marketing. Define service and explain its relevance in modern society
There are certain fundamental concepts and tasks which one needs to know to fully understand themarketing function. These concepts provide foundation for a marketing orientation and to managethe marketing function. 1. Needs and Wants The marketers task lies in satisfying human needs and wants through the exchange process. It isalleged that marketing creates needs and makes people buy things they do not actually need. Inreality, marketing or marketers do not create needs, but they create wants. Some needs are the basic human requirements of food, clothing, shelter, wat er and air. There are other needs such associal needs, esteem needs etc. When we desire certain specific objects or items to fulfill theseneeds, they are called wants. For example, when a person is hungry, he can satisfy his hunger bytaking a simple meal at home. Instead, if he wants to eat a Pizza or a Hamburger or a 5-Star Hotelmeal, it is not a need but a want. This difference between wants and needs is not the same as understood in the subject matter of economics. The marketer identifies the need which may lieunexpressed by

the customer.The task of a marketer is to influence our wants rather than needs. He does so along with other inf lu en tial f acto rs su ch as socio cultu ral fo rces and institution s su ch as f amily, religion , an ddifferent reference groups.Marketers, suggest to consumers that a particular car would satisfy the persons need for esteem.They do not create the need for esteem, but try to point out how a particular product would satisfythat need. 2. Demand Human wants are unlimited, but their resources are limited. When a want for an object is backed or suppo rted b y bu ying ability, willingn ess to spen d and d esire to acqu ire a p rod uct / serv ice, it becomes a potential demand. The task of assessing or estimati ng demand is very crucial for amark eter. He sh ould un derstand the relation ship of the d eman d fo r h is p rod uct with its p rice. Demand forecasting is essential for allocation of resources in a company. This is the reason whymarketers segment consumers on the basis of their earning capacity. The income of the consumer indicates the potential to buy. 3. Product and Services Product is a generic term used to describe what is being offered by a seller or marketer. It may bea good, a service or idea, which can be marketed by offering a set of benefits it offers to customersto satisfy their needs. However, there is a distinction between products and services. When we sayproduct, we mean a physical or a tangible product such as a tooth paste, a refrigerator or a mobile phone, whereas service refers to an act, performance, a benefit and indicates intangibility andabsen ce of o wnersh ip o r po ssession . Serv ices can inclu de b ank ing serv ice, ho spitality service,air lin es serv ice, h ealth serv ice, entertain men t service etc. Thus, a p rodu ct can b e d efin ed as anything that can be offered to market to satisfy a need or want. Today, many types of entities suchas goods,

services, experiences, events, persons, places and ideas are being marketed. 4. Target Market Very few products can satisfy everyone in the market. Therefore, marketers divide the market intodistinct groups of buyers who have similar preferences. These groups are called segments withth eir o wn sp ecif ic d emo g rap h ic, p sychographic and b eh avio ral ch aracteristics. Th e mark eter decides as to which of these segment or segments offer highest opportunity for his company. For each of these target mark ets, th e firm d ev elo ps a produ ct / service suited to th eir n eeds. TATA group has recently designed an economy car called NANO which is priced around Rs. 1 Lakh.The target market for this car is all aspirants who dream of owning a car but cannot afford cars,which are currently available for minimum Rs. 2.5 Lakh. A Target Market is the group of peopleat whom a marketer targets his marketing efforts to sell his goods and services. 5. Marketing Management Marketing Management which is also the title of this course refers to all the activities which the mark eting man ag ers, ex ecu tiv es and p erson nel have to un dertake to carry ou t th e mark eting f u n c t i o n o f t h e f i r m . I t i n v o l v e s (i) analyzing the market opportunities by undertaking consumer needs and changes taking place int h e m a r k e t i n g e n v i r o n m e n t , ( i i ) p l a n n i n g t h e m a r k e t i n g a c t i v i t i e s , a n d ( i i i ) i m p l e m e n t i n g mark eting plans and settings control mechanism to ensure smooth and successful accomplishment of the o rg an ization s go als. Mark eting Man ag emen t is a critical fu nction , esp ecially in hig hly competitive

markets. It provides competitive edge to an organization through strategic analysis and planning. 6. Values and Satisfaction In developed and developing economies, consumers have several products or brands to choose tosatisfy his/her need. Consumers perceptions about value which they can expect from different products or services depend upon several factors. Sour ces that build the customer expectationsi n c l u d e , o w n e x p e rience with products, friends, family members, c o n s u m e r s r e p o r t s a n d marketing communications. Customer value is the difference between total benefits received andto tal co sts in cu rred b y h im in acquiring the p ro du ct o r serv ices. Th e typ es of b en efits cou ld b e products functional value, or its brand related image value a nd any accompanying service value.The types of costs a customer can incur may be monetary cost and energy cost.Value is primarily a function of quality, service and cost. Value increases with increase in qualityand service and decreases with increase in cost. Value is an important marketing concept and thetask of marketing is to identify, create, communicate, deliver and monitor customer value.C u s t o m e r s g e n e r a l l y e x p e r i e n c e s a t i s f a c t i o n w h e n t h e p e r f o r m a n c e l e v e l m e e t s m i n i m u m pe rformance expectations of a product or service. When the performance as perceived exceeds theexpected performance level, the customer will be not just satisfied, but delighted. Thus customer satisfaction or delight with respect to a product or service encourages customers to come back andrepurchase the product or service in future. Satisfied customers can be an asset to the marketingco mp an y o ver a period of time, as they will spread favo rable wo rd -of- mo u th info rmation o r opinions