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(Spring/Feb 2013)

Master of Business Administration - MBA Semester 2 MB0046 Marketing Management ASSIGNMENT- Set 1 Q1. Explain the stages in the new product development process. The stages in the new product development process are as following: Stage 1- Idea generation: New product idea can be generated either from the internal sources or external sources. The internal sources include employees of the organization and data collected from the market. The external source includes customers, competitors and supply chain members. Stage 2- Idea screening: Organization may have various ideas but it should find out which of these ideas can be translated into concepts. Stage 3- Concept development: The main feature or the specific desire that it caters to or the basic appeal of the product is created or designed in the concept development. Stage 4- Concept testing: At this stage concept is tested with the group of target customers. If any changes are required in the concept or the message it will be done during this stage. Also the effectiveness is tested on a minor scale. If the concept meets the specific requirements, then it will be accepted. Stage 5- marketing strategy developments: The marketing strategy development involves three parts. The first part focuses on target market, sales, market share and profit goals. The second part involves product price, distribution and marketing budget strategies. The final part contains marketing mix strategy and profit goals. Stage 6- Business analysis: It is the analysis of sales, costs and profits estimated for a new product and to find out whether these align with the company mission and objectives. Stage 7- Product development: During this stage, product is made to undergo further improvements, new features or improvised versions are added to the product. There is also scope for innovation and using the latest technology into the product. Stage 8- Test marketing: Is the most crucial stage for the testing products performance and its future in the market. There are certain cases where product has failed in the test marketing and had to be withdrawn. The product is introduced into the realistic market

The 4Ps of marketing are tested. The cost of test marketing varies with the type of product. Stage 9 - Commercialization: In this stage product is completely placed in the open market and aggressive communication program accompanied with promotion activities is carried out to support it. Q2. Explain the steps in Marketing Research Process. Following are the steps in Marketing Research: Step I - Define the Problem & Research Objectives: Each research project should have one or more objectives. These objectives form the broad frame within which research has to be conducted. This is the first step; any error in this step can mislead the entire study towards incorrect results. Hence, it is very important to formulate the problem properly. The problem defined should be neither too broad nor too narrow. After defining the problem, it is important to set specific research objectives. Step II - Developing marketing research plan: When the marketing problem is clearly identified and formulated, marketing researchers should develop a plan to collect the relevant information. While developing the research plan, they should also familiarize themselves with the existing research findings. They can also take the help of library sources, as well as experienced consultants, persons with practical knowledge, etc. The research design is a master plan that helps in the identification of specific techniques and procedures that will be used to collect and analyze data about a problem. The research design so formulated should be compared with the objectives developed in the preceding stage to ascertain that the sources of data, data collected, scheduling, and cost of collecting data are contributing towards achievements of the research goal. Types of data and methods of data collection: Data can be of the following two types: 1- Primary data Original data derived from a new research study and collected at source, as opposed to previously published material. 2- Secondary data Data already gathered for one use that is the utilized for another purpose. For example, a person researches in co distribution using data collected by the Department of Commerce. Step III - Designing marketing research strategy: Marketing researchers should design the research strategy in accordance with the requirements of the problem. They should make certain hypotheses, the testing of which would be considered helpful in solving the problem. A research strategy also covers issues like the cost structure for the research, the time and scheduling for the research, and the nature of the contact method, like personal contact, email, telephone, etc. Marketing researchers should also set up a research strategy chart for smooth conduct of the proposed research. Step IV - Collect the Information:

After designing the research instrument, the researcher should now contact the respondent and collect the information. At this stage, it is very important to keep the quality of the data under control by ensuring accurate unbiased answers and by seeking the respondents co-operation. In case the researcher has to appoint data collectors to collect the information from respondents, they must be well trained and motivated. Step V- Analyze the Information: In this stage, researcher collects the data and codifies it. Nowadays, many questionnaires are pre-coded which makes the task of data entry very easy. The coded data is then tabulated to provide frequency distributions. Tabulated data is now analyzed. Averages and measures of dispersion are computed for the major variables. Advanced Statistical Techniques are used to discover findings. Here the data is converted to information which may be used in decision-making. Step VI - Present the Findings: At this last step, the researcher should present findings to the decision makers or users of the information. Normally, the findings are presented in the form of a report which should present the following aspects of the research undertaken. Q3. Write short notes on: A. Marketing Plan: Planning is a process of designing the blueprint for the future. Marketing planning for an organisation is planning for that organizations revenue earning activities. Marketing managers have to face changes every day in the market place. So a successful marketing management process should be continuous and must involve a cycle of planning, implementation, and control. A marketing plan is a written document that specifies the required actions to attain one or more marketing objectives. A good marketing plan should communicate to every member what is desired of them, so that they have some level of goal clarity, understanding of assumptions that lie behind the goals, and the context of each activity and decision. B. Marketing Planning process : The marketing planning process must begin by setting the corporate objectives and should be followed by strategies and plans for each function. Figure 2.12 depicts the five steps in marketing planning process. Steps in a Marketing Planning Process:

1. The first step in marketing planning process is setting marketing objectives and policies. 2. The second step is designing the marketing system. In the marketing system, a company has to design/define each function with its contribution. 3. The third step is developing separate objectives, programmers, and strategies for each function (like new product development function, pricing decisions, distribution function, promotion function) so that they can be assessed for the targets purpose and the broad objectives. 4. The fourth step is drawing detailed plans for each function for a shorter period, i.e., a quarter, half a year, or a year. It will help in defining responsibilities, timing, and costs needed to achieve the short-term objectives. 5. The fifth step is merging the marketing plans into organizational plans. Q4. Describe the international market entry strategies in brief. There are two methods to entry into foreign markets. They are indirect exporting and direct exporting. In the first method, the manufacturers take the help of merchant exporters to get products exported to foreign markets. In direct exporting, the manufacturers decide to export themselves. Thus, the manufacturers have to decide, whether they will go directly for exports or take the help of merchant exporters who are very often recognized as export houses, trading houses, etc. There are two specific reasons for why a manufacturer may resort to direct exporting: 1. Success in foreign markets can boost the manufacturers image in the domestic market. 2. There are a number of benefits available to exporters as, for example, exemption from income tax for export profits. Apart from direct and indirect exporting, the other popular methods of entering international markets are: Joint venture A joint venture is a strategic alliance where two or more parties, usual businesses, form a partnership to share markets, intellectual property assets, knowledge, and profits. A joint venture differs from a merger, in the sense that there is no transfer of ownership in the deal. Strategic alliance A strategic alliance is formed when two or more businesses join together for a set period of time. The companies, generally, are not in direct competition, but have similar products or services that are directed towards the same target group. Direct investment Through Foreign Direct Investment a firm invests directly in facilities to produce and/or market a product in a foreign country. Once a firm undertakes FDI, it becomes a Multinational Enterprise (The meaning of Multinational being more than one country). Contract manufacturing Contract manufacturing is a process that establishes a working agreement between two companies. As part of the agreement, one company will custom produce parts or other materials on behalf of their client. In most cases, the

manufacturer will also handle the ordering and shipment processes for the client. As a result, the client does not have to maintain manufacturing facilities, purchase raw materials, or hire labour in order to produce the finished goods. Franchising Franchising is basically a specialized form of licensing in which the franchiser not only sells intangible property (normally a trademark) to the franchisee, but also insists the franchisee to abide by strict rules with respect to how business is done. The franchiser will also often assist the franchisee to run the business on an ongoing basis. Q5. Discuss the various Price adjustment options adopted by the companies. The various price adjustment options adopted by the companies may be listed as follows: 1. Psychological pricing The concept of psychological pricing states that certain prices are more appealing than other. The psychology of prices is considered instead of simple economics. The price is applied to say something regarding the product. One special form is reference pricing in which there are prices that a buyer carries in his/her mind and considers that when buying a given product. As a measure of quality, image pricing or prestige pricing is used. 2. Discounts and allowances For rewarding customer responses e.g., paying early or promoting products, the discount and allowance pricing has an effect of reducing prices. Everyday low pricing is a recent pricing issue, where the retailer charges a constant, low price for all times, with no short-term price discounts. 3. Geographic pricing options Geography impacts the price in which the company decides on how to price the distant customers. Geographical pricing options include various pricing options which are as follows: Free on board Uniform-delivered pricing Averaging method Zone pricing Basing-point pricing Freight-absorption pricing 4. Predatory pricing The illegal practice of forcing competitors out of business by setting unreasonably low prices is known as predatory pricing. The practice of pricing products in host countries below the cost or less than their price in the marketers home country is known as Dumping.

Q6. Define Personal selling and also explain the personal selling process. Personal Selling: Personal selling is an activity which involves a face-to-face interaction with the customers wherein there is a quick response and personal confrontation. This allows for more specific adjustment of the message. Here, the communication message can be adjusted as per the customer's specific needs or wants. It offers you the opportunity to develop long-term familiarity and relationship.

The salesman becomes the representative of the company. The emphasis accorded to personal selling varies across companies depending on a variety of factors such as the nature of the product or service and the type of industry. Marketers of B2B products generally place more emphasis on personal selling and it plays a nominal role in companies selling low-priced consumer non-durables. In personal selling the focus is on personal or one to one' selling. It is the art of successfully persuading prospects or customers to buy products or services from which they can derive suitable benefits thereby increasing their total satisfaction, i.e. delight. Personal Selling Process: Process or steps in personal selling include the following: 1. Prospecting - This is the beginning of sales process, which covers searching for customers with potential demand. 2. Targeting - This is the process of deciding how to allocate sales time among prospects and existing customers. 3. Pre-approach - In this step, the salesperson plans methods to approach the customers and to collect company and customer information. 4. Communication and approach - This is the process of communicating and contacting the customers. It involves developing a system to greet the customers and meet them for the sale. Homer B. Smith has recommended different approaches. 5. Presentation and demonstration - In this stage, the salesperson gives a sales presentation and if required demonstrates features, advantages, and benefits and value propositions of the product. 6. Customer objection handling - Customers always pose objections during presentations or when asked to order. Psychological resistance and logical resistance are the two types of resistance seen at this stage. The psychological resistance includes resistance to interference, preference for established brands, apathy, and reluctance to give up something etc. The logical resistance includes objections to price, delivery schedule, or certain companies 7. Closing - Some salespeople do not get to this stage or do not do it well. The salespeople try to close sales after handling the customer objections. 8. Follow up and maintenance - The salesman does follow up and retains the relationship with customers to obtain repeated orders and referrals and ensures customer satisfaction and repeated business. In the case of consumer durables, salespeople take care of maintenance.