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Explain the stages in the new product development process. Answer- A Company has to generate many ideas in order to find one that is worth pursuing. The Major sources of new product ideas include internal sources, customers, competitors, distributors and suppliers. Almost 55% of all new product ideas come from internal sources according to one study. Companies like 3M and Toyota have put in special incentive programs or their employees to come up with workable ideas. About 30% of new product ideas come from analysis of competitors’ products. The company can watch competitors’ ads, press releases and write-ups in the press about their activities. Companies also buy competitors information and pay for industrial espionage. Idea Screening: -The purpose of idea generation is to create a large pool of ideas. The purpose of this stage is to pare these down to those that are genuinely worth pursuing. Companies have different methods for doing this from product review committees to formal market research. It, is helpful at this stage to have a checklist that can be used to rate each idea based on the factors required for successfully launching the product in the marketplace and their relative importance. Concept Development and Testing – An attractive idea has to be developed into a Product concept. As opposed to a product idea that is an idea for a product that the company can see itself marketing to customers, a product concept is a detailed version of the idea stated in meaningful consumer terms. This is different again from a product image, which is the consumers’ perception of an actual or potential product. Marketing Strategy Development – This is the next step in new product development. The strategy statement consists of three parts: the first part describes the target market, the planned product positioning and the sales, market share and profit goals for the first few years. The second part outlines the product’s planned price, distribution, and marketing budget for the first year. Business Analysis – Once the management has decided on the marketing strategy, it can evaluate the attractiveness of the business proposal. Business analysis involves the review of projected sales, costs and profits to find out whether they satisfy a company’s objectives. If they do, the product can move to the product development stage. Product Development – Here, R&D or engineering develops the product concept into a physical product. This step calls for a large investment. It will show whether the product idea can be developed into a full- fledged workable product Test Marketing - If the product passes the functional tests, the next step is test marketing: the stage at which the product and the marketing program are introduced to a more realistic market settings. Test marketing gives the marketer an opportunity to tweak
or computer-assisted personal interviewing). 5. The issue of how the data should be obtained from the respondents (for example.Q-2 Explain the steps in Marketing Research Process. qualitative research and pragmatic considerations. perhaps. It is also necessary to design a questionnaire and a sampling plan to select respondents for the study. and designing appropriate scales to measure them are also a part of the research design. or through mail (traditional mail and mail panel surveys with persecuted households). 6. from an office by telephone (telephone or computer-assisted telephone interviewing). More formally. as in the case of personal interviewing (in-home. and its purpose is to design a study that will test the hypotheses of interest. some qualitative research. the relevant background information. by conducting a survey or an experiment) must be addressed. 7. precisely defining the variables. what information is needed. Answer -Stages/Steps in marketing research Step 1: Problem Definition: The first step in any marketing research project is to define the problem. mall intercept. and. analysis of secondary data. Once the problem has been precisely defined. research questions. hypotheses. analysis of secondary data. observation. 2. analytical models. and evaluation of the field force help minimize data-collection errors. and identifying characteristics or factors that can influence the research design. case studies and simulations. Problem definition involves discussion with the decision makers. training. This process is guided by discussions with management and industry experts. and experimentation) Definition of the information needed Measurement and scaling procedures Questionnaire design Sampling process and sample size Plan of data analysis Step 4: Field Work or Data Collection Data collection involves a field force or staff that operates either in the field. Step 2: Development of an Approach to the Problem Development of an approach to the problem includes formulating an objective or theoretical framework. Proper selection. 8. and provide the information needed for decision making. It details the procedures necessary for obtaining the required information. In defining the problem. and how it will be used in decision-making. supervision. 4. Step 5: Data Preparation and Analysis . determine possible answers to the research questions. Conducting exploratory research. the research can be designed and conducted properly. such as focus groups. interviews with industry experts. Step 3: Research Design Formulation A research design is a framework or blueprint for conducting the marketing research project. Secondary data analysis Qualitative research Methods of collecting quantitative data (survey. the researcher should take into account the purpose of the study. 3. formulating the research design involves the following steps : 1.
Q3. transcription. hopefully. multivariate techniques are used for analyzing data when there are two or more measurements on each element and the variables are analyzed simultaneously. On the other hand. and a data analysis procedure adopted. while data analysis. Marketing Planning process Answer -A. Univariate techniques are used for analyzing data when there is a single measurement of each element or unit in the sample. In addition. In many respects. such as new product planning. Number or letter codes are assigned to represent each response to each question in the questionnaire. such as a new business proposal to the financial community? . and. the Marketing Plan is the most important document produced by marketers as it not only helps to justify what has occurred in the past. Is a component within an overall business plan. an oral presentation should be made to management using tables. or trying a new strategy to fix an existing problem. coding. or. but is critical for explaining where a company intends to go in the future. Verification ensures that the data from the original questionnaires have been accurately transcribed. data collection. 3. if necessary. Each questionnaire or observation form is inspected. Is a key component in obtaining funding to pursue new initiatives? The Marketing Plan is generally undertaken for one of the following reasons: 1. The Marketing Plan is widely used by both large corporate marketing departments and also by small startup companies.Data preparation includes the editing. Marketing Plan B. Needed for a specialized strategy to introduce something new. 2. The data from the questionnaires are transcribed or keypunched on to magnetic tape. Forces the marketing personnel to look externally in order to fully understand the market in which they operate. entering new markets. Marketing Plan: -The Marketing Plan is a highly detailed. and graphs to enhance clarity and impact. and presents the results and the major findings. heavily researched and. if there are several measurements of each element. or edited. Sets future goals and provides direction for future marketing efforts that everyone within the organization should understand and support. corrected. each RCH variable is analyzed in isolation. or disks or input directly into the computer. Essentially the Marketing Plan: Forces the marketing personnel to look internally in order to fully understand the results of past marketing decisions. and verification of data. It is particularly important for marketers who seek funding for new projects or to expand existing products or services. Write short notes on: A. the research design. describes the approach. gives meaning to the data that have been collected. guided by the plan of data analysis. well written report that many inside and possibly outside the organization will evaluate. Needed as part of the yearly planning process within the marketing functional area. Step 6: Report Preparation and Presentation The entire project should be documented in a written report which addresses the specific research questions identified. figures. The findings should be presented in a comprehensible format so that they can be readily used in the decision making process.
but it depends on an organization how they have encapsulated their strategies to follow this process. . web or email survey.Choosing the correct market entry strategy is critical to your long-term success. organization and collection. The approach taken here is to present a 6-Part plan that includes: 1. Planning information analysis. Describe the international market entry strategies in brief. Given below is a typical market research process which is depicted stage-wise: Picking out the appropriate methodology. Desk work includes contacting personals over telephone or via series of emails and web meetings. Determining the need of this information. Exporting Direct exporting is that the market entry strategy chosen by most small companies. This could take comparatively more time as compared to the field work. It may include a combination of specific approaches like telephone survey. one-to-one interviews. Marketing Planning process The market research process involves a round of separate stages of data interpretation. Formulating case studies and sampling process. B.A specific methodology is entailed by the research professional after identifying the specific needs and exploring the case studies. Field work includes interviewing the personals by interacting them face to face by visiting them in home or offices or arranging group meetings at any preferred place. Hence some of the interlinked stages could be conducted repeatedly and some of the stages can also be omitted. 2. Scaling and measuring procedures.This process includes field work and desk work for collecting all relevant data and information. The reason . Data Collection Process.There are many ways to develop and format a marketing plan. Performance Analysis and Implementation Additional Consideration Methods for collecting and preparing quantitative information. This methodology acts as a blueprint of research process and following basic steps: Purpose and Mission Situational Analysis Marketing Strategy and Objectives Tactical Programs Budgets. Involving experienced and trained executive for this helps in reducing data collection errors. Most small companies use the direct exporting strategy by engaging an agent or distributor but there are a number of options for you to examine and these are discussed below in order of least costly and least control to most expensive and most control. secondary research etc. Designing sample Questionnaire. 5. Q4. Answer. 3. 6. 4. These stages could be considered as a benchmark of market research.
A JV is the formation of a third independent company owned. but not necessarily. . having complete control of your operations and there is a shorter curve in learning about the local market. However. Direct exporting involves the use of agents or distributors. Strategic alliances can be formed for all a range of purposes from joint marketing to joint production to collaborative design or distribution. or JV’s. Partnerships Partnerships can be formal or informal. Joint Ventures Joint ventures. is best used by those companies that have a component of intellectual property in their product although it can be used by any type of company depending on what they are wanting to license.for this is quite straightforward. Franchising Franchising is becoming a more popular market entry strategy given the world wide branding of various products as a result of the internet. Joint Ventures/Partnerships/Strategic Alliances Perhaps the most appropriate and valuable strategy for entering a foreign market is to work with a local partner. Local partners provide “on the ground” knowledge and this can be immensely important in foreign markets. In short you become a local firm by doing this and have the advantage of being treated as a local company. International franchise agreements are the same as domestic ones with the obvious exception that they must meet the commercial laws of the country you are franchising too. Direct exporting is the most basic entry into international markets. if you can find a good one. However. you will need to make the largest investment in accessing the market if this is the strategy you choose.. A formal partnership is when you have a legal agreement to market or produce your service or product with detailed objectives and targets defined. Licensing Licensing. there are different types of “partners” and each need to be evaluated depending on your firm’s particular requirements and capabilities. Foreign Direct Investment Foreign direct investment (FDI) is when a firm either purchases a local firm of builds its operations “from scratch” in the foreign market by setting up an office or factory. An informal arrangement is one where your firm agrees with a local firm to work together to market or produce your product or service. as a market entry strategy. Strategic Alliances Strategic alliances are simply a business-to-business collaboration. managed by the partners. as they are commonly referred to is the most sophisticated of the partnership trio. It is important to understand the difference between an agent and a distributor.
goods are sold at higher prices so that fewer sales are needed to break even. are more reliable or desirable. based solely on the price. Piggybacking Piggybacking is the process of supplying a good or service to a larger company in your domestic market that will then in turn sell its finished product internationally. . This strategy is often used to target "early adopters" of a product or service. Q5. Too many businesses have been lost because they priced themselves out of the marketplace. or simply having a higher disposable income. These are that the business owner can cut costs or sell more. Skimming is usually employed to reimburse the cost of investment of the original research into the product: commonly used in electronic markets when a new range. too many business and sales staff leave "money on the table". Discuss the various Price adjustment options adopted by the companies . Selling a product at a high price. You build something. especially in a poor economy. When costs are already at their lowest and sales are hard to find. a pulp mill to start up condition and hand over the “key” to the owner. sacrificing high sales to gain a high profit is therefore "skimming" the market.Turnkey Projects Turnkey projects are as the name implies. a factory. so adopting a pricing strategy is a learning curve when studying the needs and behaviors of customers and clients. On the other hand. Early adopters generally have a relatively lower price-sensitivity . a hydro facility. or find more profit with a better pricing strategy. Premium pricing Main article: Premium pricing Premium pricing is the practice of keeping the price of a product or service artificially high in order to encourage favorable perceptions among buyers. One strategy does not fit all. are firstly dispatched into the market at a high price. Ans-Pricing strategies for products or services encompass three main ways to improve profits. a greater understanding of the product's value. such as DVD players. Creaming or skimming In most skimming. This method although simple has two flaws. adopting a better pricing strategy is a key option to stay viable.this can be attributed to: their need for the product outweighing their need to economise. Merely raising prices is not always the answer. or represent exceptional quality and distinction. Models of pricing: Cost-plus pricing is the simplest pricing method. The practice is intended to exploit the (not necessarily justifiable) tendency for buyers to assume that expensive items enjoy an exceptional reputation. The firm calculates the cost of producing the product and adds on a percentage (profit) to that price to give the selling price.
dissatisfaction with the company and competition. Define Personal selling and also explain the personal selling process? Answer. the sales presentation is delivered. takeovers. usefulness and how to organise the information for easy access and effective use.the first step in the personal selling process The process of looking for and checking leads is called prospecting or determining which firms or individuals could become customers. the lead to a prospect taking the desired action of buying a product or service and finish with a follow-up contact to ensure purchase satisfaction. Saves you 20% on replacement cost. The Approach The salesperson should always focus on the benefits for the customer. The pre-approach investigation is carried out on new customers but also on regular customers. It is illegal in some countries. A steadily growing list of qualified prospects is important for reaching the sales targets. This is done by using the product's features and advantages. Up to 20% of a firm's customer base can be lost for reasons such as transfer. It should be done in a relaxed atmosphere to encourage the prospect to share information in order to establish requirements. Step Four The Sales Presentation After the prospects interest has been grasped. Some small talk may be necessary to reduce tension but the purpose always remains business. The Pre-approach This stage involves the collecting of as much relevant information as possible prior to the sales presentation. death. also known as aggressive pricing (also known as "undercutting").The Personal Selling Process: The personal selling process is a consecutive series of activities conducted by the salesperson. Advantages and Benefits). Contribution margin-based pricing Main article: Contribution margin-based pricing Q6. Benefits : Refers to the benefits for the prospect. intended to drive out competitors from a market. . This involves a "persuasive vocal and visual explanation of a business proposition".Predatory pricing Main article: Predatory pricing Predatory pricing. retirement. Prospecting . Eg. Systematic collection of information requires a decision about applicability. This is known as the FAB technique (Features.
It also assists the salesperson to establish exactly what is on the prospect's mind.technique to establish the attitude of the prospect towards the presentation and the product. . Step Six Handling Objections Objections are often indications of interest by the prospect and should not be viewed with misgiving by salespeople.Step Five The Trial Close The trial close is a part of the presentation and is an important step in the selling process. Known as a temperature question . The prospect is in fact requesting additional information to help him to justify a decision to buy. The prospect may not be fully convinced and the issues raised are thus very important.
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