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Course Subject Semester Subject Number Master of Business Administration (MBA)
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Q.1 a. Explain the different micro-environmental forces with examples.
Forces in the micro environment
1 The Company Remember, in the previous unit we discussed about marketing mix and marketing plan. Safe Express, a leader in the supply chain management solution wants to hold its number one position in the US $ 90 billion Indian logistics market. The company plans to expand its service areas in the coming months. To meet the targets of the marketing plan, other departments of safe express also expanding their horizon. The Company is coming out with logistics parks in different cities; plans to hold seven million square feet of warehousing capacity in the next three years and invest Rs 10 billion in three years to meet those targets. The above example shows that the company’s marketing plan should be supported by the other functional departments also. 2 Intermediaries
2. Internal publics: Employees who help in creating proper image for the company through word of mouth. wholesalers. Deccan Herald 3. Advertisement regulation agencies. and selling the goods and services to customer are some of the major functions carried out by the middlemen. Retailers are final link between the company and the customers.g. 3 Publics These are microenvironment groups. jobbers and carry forward agents are few of the intermediaries. investment houses and stockholders are the major financial publics. people for ethical treatment of animals (PETA) or Greenpeace. For example. selling and promoting the goods and services. We can identify six types of publics 1. Stocking and delivering. For example. Financial publics influence the company’s ability to obtain funds. Banks. 4 Competitors A company should monitor its immediate competitors as its sale will be affected by the nature and intensity of the competitors. which help a company to generate the financial resources. Citizen action groups: Formed by the consumer or environmental groups. 6.Marketing intermediaries: These are firms which distribute and sell the goods of the company to the consumer. agents. Retailers. brokers. General publics: a company should be concerned towards general publics’ attitude towards its products and services. 5. bulk breaking. or Britannia cheese by Amul 3 . examining the companies’ policy and developing the attitude towards the product. creating the image. and insurance regulation government telecom regulation agency(IRDA) of the 4. Marketing intermediaries play an important role in the distribution. The sale of Coca cola will be affected by Pepsi cola. agency( TRAI). Their role in the marketing of product is increasing every day. Media publics carry news and features about the company e.
b. at the same time meet customer requirements. in addition to direct competition. India is a manufacturing hub. energy and fuel suppliers. Many companies adopted supplier relation management system to manage them well. Hence any problems or cost escalation in this stage will have direct effect on the company. a simple step could be that the product should be positioned differently and the company should be able to provide better services. How do companies or enterprises survive and grow under the above circumstances. the potential competitors should also be anticipated. Small firms with low overheads producing duplicates. In a globalised scenario suppliers are even more important as competition goes up manifold! The Tamil Nadu State Electricity Board imports coal from New Zealand despite huge coal reserves in India. Pepsi entered the snacks sector competing with pure snack producers like Haldiram. c. In addition to existing competitors. Suppliers are the first link in the entire supply chain of the company. labour suppliers. For Volvo. There are typically. Direct or indirect marketing 4 . Firms which diversify into certain products by merely being in the particular industry for e.g. 6 Customers A company may sell their products directly to the customer or use marketing intermediaries to reach them.cheese. Godrej which manufactured office furniture and steel cupboards went on to the entire range of home furniture thereby giving competition to pure home furniture makers. Timely supplies reduce stocking of goods and blocking of space. Competition may arise from a.g. Suppliers are a source of competition to firms today. Michael Porter. While we shall study this in detail later. Firms which expand in the same vertical for e. 5 Suppliers There are many kinds of suppliers to an enterprise or an institution. For a large retail store like Reliance Retail or Big Bazaar the suppliers play the most significant role in both cost and time. companies should also consider competition from substitutes. the author of Competitive Advantage of Nations suggested that. office item suppliers and so on. raw material suppliers.
Generally we can divide the markets into five different categories. It operates in business markets by selling tyres to companies like Maruti Udyog limited. Business market c. customer purchases directly from showroom) i. b.love. Positive emotions like love. Wheel. Following are the advertisement where such attributes of positive emotions used. transport organizations of Karnataka government. International market You will come to know about these five different markets from the following example.g. MRF also sells TYREs to BMTC and KSRTC. They are a. MRF. joy and humor are used in the message. retreads it and sells it to the consumer at a profit then company is operating in the reseller market. If MRF sells tyres in African or American countries then it is operating in the international market.e. The different ad appealsA)Emotional appeal: Positive emotional appeal or negative emotional appeals are strong tools used to intensify the purchasing activity of the customer. The negative emotions like fear guilt and shame are also used in the advertisement to attract the customer.g. Government market and e. operates in consumer market. Mention the different ad appeals with suitable examples. e. a tyre company sells its product directly to consumer (in case of urgency.pride e.g. pride. b. Fevicol – humor e. BMW fastest saloon car in the world. Reseller market d. Consumer market.depends on what type of markets Company serves. 5 . If MRF buys the old tyres.
Political rights. Reliance Infocom.performance( works even in flood situations) e.economy C)Moral appeal: These are concerned towards public health or environment or social responsibility.g. They highlight quality.g. Lakme brilliance. Rexona deodorant – shame B)Rational appeals: The rational appeals highlight on the desired benefits about the products. Checklist for country evaluation The Characteristics. Health expenditure. economy value or performance of the product. e.g. Reliance India mobile. weight ages and score should be checked. e. 4. Control of corruption. the mobile phone must come to me as a necessity and not as a luxury. 2. Dabur Amla – value appeal ( long Hair) e. Rule of law or legal issues. competitive advantage and risk level.g. e. 6 . 1. In how many countries would the company like to operate? b.Like the first three. market growth.Quality products.g.e. and cost of doing business.g. What are the types of countries it plans to enter? That’s why companies evaluate each country against the market size.g. 3. 6. Shell lubricants show its commitment towards environment in their advertisements. Civil liberties.if you are not studying at NIIT you are missing somethingguilt e. NIIT. Government effectiveness.2 what are the different market entry strategies if a company wants to enter international markets? Organizations that plan to go for international marketing should know the answers for some basic questions like – a. Q. 5.
For example. Contract manufacturing d. Torrent Pharmaceuticals has license to sell 7 . Exporting may be indirect or direct. 13. In case of indirect exporting. Management contract e. patent. Fiscal policy. Trade policy. another leading exporter from India has international office in Singapore. 11. Joint ownership f. Inflation. 15. Competition. India’s leading car manufacturer exports its cars on its own. Exporting b. Maruti Udyog Limited. Education expenditure. 12. 8. offering the right to use a manufacturing process. Consumption patterns. 9. This is cost effective and less risky too. International Market Entry Strategies Once the market is found to be attractive.7. Cost of starting a business. Licensing c. Adani Exports. Company can also set up overseas branches to sell their products. companies should decide how to enter this market. Direct investment Exporting is the technique of selling the goods produced in the domestic country in a foreign country with some modifications. They are a. licensing is a method of entering a foreign market in which the company enters into an agreement with a license in the foreign market. company works with independent international marketing intermediaries. Days to start a business. Direct exporting is the technique in which organization exports the goods on its own by taking all the risks. 14. Gokaldas textiles export the cloth to different countries from India. 10. or other item of value for a fee or royalty. trademark. Companies can enter the international market by adoptingany one of the following strategies. For example. Regulatory quality. Licensing: According to Philip Kotler.
Management contracting: In this case. a lingerie manufacturer has joint venture with Gokaldas Images in India. Many manufacturing firms invested directly in the Chinese market to get its low cost advantage.a. Contract manufacturing: Company enters the international market with a tie up between manufacturer to produce the product or the service.link India to produce and sell their mother boards. For example. Some governments provide incentives and tax benefits to the company which manufactures the product in their country. For example. a company enters the international market by providing the know how of the product to the domestic manufacturer. This mode also depends on the country attractiveness. The following graph represents the PLC curve and the 5 stages that it has to undergo 8 . Meaning of Product Life Cycle: It means a product has to go through the various stages since its inception and till it completely fades out from the market. Another significant manufacturer is TVS Electronics. Barbara. Licensee may violate the agreement and can use the technology of the parent company. as it produces the jobs to the local people.the cardiovascular drugs of Chinese manufacturer Tasly. Gigabyte Technology has contract manufacturing agreement with D. Direct Investment: In this method of international market entry. Company invests in manufacturing or assembling. Therefore it also has equal right in the controlling operations.3. Q. it produces key boards in its own name as well as for other companies too. There is government restriction in some countries to opt only for direct investment. Licensing may cause some problems to the parent company. The capital. marketing and other activities are carried out by the local manufacturer. State the meaning of Product life cycle and explain the different stages involved in it. The company may enjoy the low cost advantages of that country. It may become risky if the market matures or unstable government exists. hence it is less risky too. Joint ownership: A form of joint venture in which an international company invests equally with a domestic manufacturer.
Even if sales in this stage are nil it requires huge research and development budget. Its sales also fluctuate. Product life cycle (bell shaped curve) According to PLC. Therefore a marketer will be interested in finding out how sales changes over a period and what strategies are best suited at that point. Therefore company incurs losses at this stage. Product development stage: In this stage company identifies the viable idea and develops it. For example. fashion or fad style of product life cycles also. TATA Docomo before entering the cellular services market had done research and found that calls were charged for minutes rather than seconds. 9 . a product passes through five stages which are as follows: 1. A product life cycle can be graphed by plotting aggregate sales volume for a product category over time. We can obtain style.The product which is introduced into the market will undergo some modifications over the period. Generally the curve resembles a bell shaped curve.
consumer awareness is usually very low. For example. Introduction stage: Company introduces the product into the market. 3.d.b.g.2. For example. High profits. Growth stage: Company gets experience over the period and now tries to get the maximum market share (takes ‘first mover’ advantage). Maturity stage: In this stage. Communicating the product differentiation (or USP) to consumers. Here company adopts heavy sales promotion and product awareness programs. cargo jeans are now the fashion with college going students. For example. Improving supply chain efficiency. 10 . These are the characteristics of this stage – a. accessories and clothing. It focuses on building better distribution network and pushes the product through it. There will be increase in Competition and the company is forced to keep a tab on its competitors. The advertisement budget of the company also comes down and the company may struggle to meet its costs. Therefore company needs less sales promotion. For example. Defend the market share h. resulting in lesser cost and better profit. 2. Peak sales. Company should phase out weak items from their product mix and may even lower the prices of the existing products. Fashion: Currently accepted or popular style in a given field. Low cost per customer. As the product is new to the market. Industry experiences consolidation. Competition based pricinge. TATA Docomo has entered into the growth stage by aggressively advertising on Television and other mediums and at the same time giving competition to the existing players. At this juncture the company charges high price to the customers. product sales and profit decline. Company reduces the price of the product and offers varieties and values in it. The cost of product is very high and sales are very low. 5. Fashion changes with time. Once the style is invented it will be there for a longer period. art. 4. Sales will grow rapidly. VCR’s have been replaced with DVD players and so VCR entered into the decline stage and is almost out of the market. Other product life cycles: 1. style is evident in homes. For example. the product has already established itself in the market. Decline stage: In this stage. Style: A style is a basic and distinctive mode of expression that appears in the study of human behavior.f. TATA Docomo has entered into cellular services initially through the Billboards. c.
Lynch From the above definitions. Fad: A fashion that enters quickly is adopted with great zeal. and sustaining long lasting. Christopher considers relationship marketing as “a tool to turn current and new customers into regularly purchasing clients and then progressively moving them through being strong supporters of the company and its products to finally being active and vocal advocates for the company. Define Customer Relationship Management.” Doyle and Roth define CRMS as “the goal of relationship selling is to earn the position of preferred supplier by developing trust in key accounts over a period of time. minds and purses of the mass consumers. the demand for pager went down drastically.” The sequence of activities for performing relationship marketing would include developing core services to build customer relationship. peaks early. everybody wanted to have the product.James J. Jackson defines CRM as “marketing oriented toward strong. maintaining and – in multi-service organizations – enhancing customer relationships.” Berry and Parasuraman define CRM as “attracting.” Relationship marketing is in essence “selling by using psychological rather than economic inducements to attract and retain customers. when pager was introduced. developing and retaining customer relationships. trusting. beneficial and successful relational exchanges between the focal firm and all its supporting key stakeholders. and enhancing customer loyalty and fine-tuning internal marketing to promote external marketing success. augmenting core services with extra benefits. For example.”.3. 11 .” In Industrial Marketing. and declines very fast. win-win. developing. lasting relationships with individual accounts. But when people found mobiles as alternative. It seeks to personalize and appeal to the hearts. customization of relationship. it could be concluded that Customer Relationship Management refers to all marketing activities directed towards establishing. b. Berry defines CRM as “attracting.
Always be recruiting. Playing this forward a bit. While the seat is open. How will you select the right candidate for the sales job? 1. This leads many to forget the profile of the ideal salesperson profile in the interest of filling a seat. it becomes an "all hands on deck" exercise to fill it. It is also the major point of frustration between sales managers and recruiters. revenue targets are in jeopardy. In sales. Some of the areas to address in the profile are the experience you expect that candidate to already have. Recruiters often tell me that they feel they are throwing darts while blindfolded because they have so little detail about the desired profile. How can you screen when you don't know what you are screening for? This profile should be fully detailed. Find a company that identifies a strong candidate that meets their profile who wouldn't find 12 . You have taken some interviews and shortlisted a few candidates. When a slot is open on the sales team. Sales recruiting is a year-round exercise. The best sales forces are always on the look out for strong sales talent.Q. there is an old expression: "The toughest time to make a sale is when you really need one. It has always surprised me how many companies have fully documented profiles of their ideal client. the seat becomes vacant again a short time later when either side determines that it is not a good fit. You are a sales manager in ABC firm." The same holds true for recruiting. the skills that the candidate should already possess and the skills you are NOT willing to teach. Create an Ideal Salesperson Profile. few have a profile of their ideal salesperson. a.4. 2. Yet. The lack of a fully-defined profile of the ideal salesperson is the most common cause of bad sales marriages.
it is very easy to get yourself in hot water if illegal questions are asked). Sales teams have turnover either driven by the company or the employee. The first is to provide the candidate with an opportunity to ask questions of someone who would be their peer if they were to be hired. The last piece you need to do this well is a score sheet. It is a rarity to say the least. the cost is more painful if the seat is filled by someone who doesn’t fit. I've found it most beneficial to give the candidate the scenario a day ahead of time so they can prepare. but without any scripting it can be hard to stay in character. Poor hiring decisions are made out of desperation to fill a seat. Afterwards. unlike traditional interviews. In essence. you need to create a scenario for the candidate. Did the candidate take advantage of this opportunity. a wonderful technique is reverse interviewing—an interview performed by a member of the sales team who would be a peer if the candidate was hired. They should be provided with the same amount of information a sales person in your company normally has before making an initial sales call. knowledgeable and make a favorable impression. bring prepared and insightful questions and write down answers? If they didn't. Those members of your company who participate in the exercise should be somewhat scripted. you don't want untrained people asking questions. conduct a debrief with the "reverse interviewer" to see what questions were asked. what kind of preparation will the candidate do for a sales call? How interested are they really in this job? 5. What better way to see if someone fits into your company's selling environment than to put them right in it? To do this effectively. Know what you are looking to measure in the process and score accordingly. this "questionless" exercise has two different purposes. it is a way for them to get a picture of a day in the life of this job. Practice Reverse Interviewing. Thus. Host a Mock Sales Call. Rather. the "interviewer" does not ask any questions of the candidate (as you know. Yet. Can they conduct a thorough needs analysis? 13 . I say "somewhat" because you don't want it to be so dry that it is unrealistic. It is important that the individual(s) selected to participate in this step are loyal to the company. However. The second purpose is to measure how the candidate prepares for a sales call. It is best to have a candidate portfolio at the ready than to begin a process of surfacing candidates when a seat is open. 3.a way to hire this individual. The open seat is a cost to the company every day it is unfilled. Since the intent of the process is for both sides to be able to determine if a marriage should be formulated.
"We have seen many organizations fail to take the context of an organization into account when deciding the most appropriate assessment to use. product director of Employee Continuum. has seen companies use this great tool incorrectly. place. b. the personality characteristics required for a sales person selling office supplies to purchasing agents are very different than those required for a salesperson selling everything needed for a dentist office. Information search: In this stage customer wants to find out the information about the product. Use Online Assessment Testing Wisely. This is not necessarily the case. Personal sources: Family. From both stimuli customers understand the need for the product. For example. friends and neighbors b. However. Here marketer should understand what customers needs have that drew customers towards the product and should highlight those in the communication strategy. The examples of internal stimuli are customer’s desire. attitude or perception and external stimuli are advertising etc. As a consumer." she says. few. The most appropriate application is to treat it as an additional data point in the sales talent screening program. Customer collects the information from different sources like a. There are a myriad of tools that are very helpful in the screening process for both personality and skill.Did they identify the challenges faced by this prospect? Would you buy from them? 6. Linda Moeller. many organizations assume that implementing a sales assessment will guarantee them improved sales performers. Commercial sources: Advertising. if any. of the online assessment companies suggest that their tool should be used to make a hiring decision. packaging and displays. sales people. an organization needs to consider the type of relationship they have with their clientele and the competencies that will make these relationships successful. Need recognition: customer posses two type of stimuli’ at this juncture. price and point of purchase. 14 . For example. what are the steps you will undertake before you decide to buy a car? The steps undertaken before deciding to buy a car1. 2. dealers. One is driven by the internal stimuli and another is external stimuli. In order to be successful.
Public sources: mass media and consumer rating agencies. Evaluation of alternatives: After collecting the information. The marketer’s job does not end when the product is bought but continues into the post purchase period. In India affordability plays an important role at this stage.c. 4. If the performance of the product is not as he expected then he develops 15 . The consumer will also engage in post purchase actions and product uses of interest to the marketer. Quality e. The evaluation process varies from person to person. Durability At this stage marketer should provide comparative advertisements to evaluate the different brands. Experiential sources: Demonstration. 5. In this stage he will compare different brands on set parameters which he or she thinks required in the product. 3. examining the product. Organizations’ bring many varieties of the products to cater to the needs of customers. In general Indian consumer evaluate on the following parameters a. Features c. Price b. The communication should highlight the attributes and advantages of the product in this stage so that he created the positive image about the product. consumers arrive at some conclusion about the product. d. Post purchase behavior After purchasing the product the consumer will experience some level of satisfaction and dissatisfaction. Availability d. Customer would like to see the performance of the product as he perceived before purchase. Purchase decision In this stage consumer buy the most preferred brand. In this stage marketer should give detailed information about the product. The advertisement should be different for different segments and highlight the attribute according to the segment.
larger will be the organizational buying. For example. Larger the consumer demand. Variable demand: The nature of demand is fluctuating because the demand is basically a derived one. Many automobile brands that were not able to get resale value lost their market positions. For example. Shoe manufacturers will not buy much leather if the price of leather is less neither will they buy less leather if the price increases. mobiles are being used by a large population and so cellular companies have to meet this rising demand. Purchasing activity is usually 16 . Marketer should keep an eye on how consumer uses and disposes the product. 4. 5 a. For example. organizations buy the goods and make the finished goods available in the market for final consumption. Such B2B operations determine the organizations as buyers and those organizations who supply the various requirements will be the sellers or suppliers or service providers. 3. 5. What are the features of Business markets? How is it different from consumer markets? Features or Characteristics of Business Markets Following are some of the unique features of business markets where large establishments purchase the required goods and services from other businesses. shipping industries are located on the east and west coasts of India than in any other places. Geographical concentration of buyers: Buyers are geographically concentrated. Based on the requirements of the consumer markets. 1. Few but bulk Buyers: The no. of buyers is few but they buy in large quantity.dissatisfactions. Systematic purchasing: The purchasing activity is directly between the buyer and supplier organization which means there are no or very few middlemen involved. Q. For example. major airlines buy the necessary equipments from the aircraft manufacturers 2. Inelastic demand: The demand is also inelastic because organizations cannot make rapid changes in the production structure and so prices remain constant in the short-term. In some durable goods Indian consumer want resale value also.
17 . So. operation theaters. For example. b. 7. For example. renewing agreements etc. but does not specify how many of the migrated employees are educated and if educated how many are in white collared jobs.undertaken by purchase departments based on a proper structure and through various mechanisms like having purchase requisitions from other sections. Census of India provides the data on migration and education level. a stationery supplier will supply the necessary stationeries to the paper manufacturer who in turn provides papers to the supplier. get better service and the lesser or one who provides the equipments will also profit from the rent or lease charges. 6. Reciprocation: This means that when an organization buys goods from another organization then the supplier organization also might need certain other goods that are produced by the buyer organization. If the information is not obtainable. For example. For example. List out the 5 important requisites of an effective segmentation by giving suitable examples. purchase department in a Hospital must be aware about the specific requirements in the clinical wards. Measurable and Obtainable: The size. If a company wants to target white color collared employees who are migrated to particular city. Reliance Fresh has regular contracts with the agricultural producers for smooth supply of fresh fruits and vegetables. purchasing agreements or contracts with the key suppliers. etc. in this way. unless they have the proper resources to work with there will be problems in the departments. TATA provides the transport trucks to other organizations on lease. profile and other relevant characteristics of the segment must be measurable and obtainable in terms of data. Lease agreements: Most organizations take on lease the expensive equipments required by them rather than buy it. For example. labs. Multiple buying influences: there will be several parties involved in deciding about the purchases because organizations will have several departments and units functioning under it with different requirements. inviting tenders and sending invoices from the suppliers. no segmentation can be carried out. Requisites of Effective Segmentation 1. 8. So. they reduce cost. . it will not able to measure the same.
Meaning of New Products: a. or offered in a new market. They are very different from the others: Haier launches pathbreaking 4-Door Refrigerators first time in India 18 . Actionable: The segments which a company wishes to pursue must be actionable in the sense that there should be sufficient finance. Google’s Orkut. Life Insurance Corporation of India needs separate marketing programs to sell their insurance plans. or differentiated from existing products. Q. Therefore it is necessary to understand the concept of new products. As the number of subscribers grew. a networking site which revolutionized social networking. Majority of the rural population is still not able to access the internet due to the high cost and non-availability of connections and bandwidth. For consumer markets. share photos. Substantial: The segment should be large enough to be profitable. 4. Differentiable: The segments should be different from each other and may require different 4Ps and programs. For example. They are really innovative. It may be a modification. Further growth of subscribers resulted in lowering tariffs for outgoing calls to the lowest level in the world. For example. In this site people can meet like minded people. they can form their own groups. Explain briefly what are the several processes involved in new product development. personnel. and capability to take them all. unit plans. For example. pension plans and group schemes 5. 6. incoming calls became free. New Product Development New products are essential for existing firms to keep the momentum and for new firms they provide the differentiation. 3. b.2. New product doesn’t mean that it is absolutely new to the world. For example. Accessible: The segment should be accessible through existing network of people at an affordable cost. when the cellular services started in India cost of the incoming calls and outgoing calls were charged at Rs 12/minute. the small segment might disproportionably increase the cost and hence products are priced too high. comments and many more.
For example. This product is new to Cavin Kare but not to the market. Also the effectiveness is tested on a minor scale. New product development process: Stage 1 – Idea generation: New product idea can be generated either from the internal sources or external sources. these products are not new to the market but new to the company. The first part focuses on target 19 . competitors and supply chain members.’ probably without doors or windows and with plastic curtains that rolled down. plastic doors etc… But when he unveiled the car. Stage 5 Marketing strategy development: The marketing strategy development involves three parts. in-house car which meets all the environment standards Stage 4 – Concept testing: At this stage concept is tested with the group of target customers. then it will be accepted. Concepts used for Tata Nano car are Concept I: Low-end ‘rural car. For example. there were many changes in the product. This shows that initial idea will be changed on the basis of market requirements. Mr. Ratan Tata. They are imitative. If the concept meets the specific requirements. The internal sources include employees of the organization and data collected from the market. If any changes are required in the concept or the message it will be done during this stage. a four-wheel version of the autorickshaw Concept II: A car made by engineering plastics and new materials. Concept III: Indigenous. He told that he wanted to develop car with scooter engine. Ingersoll Rand welcomes new ideas from the General public Stage 2-Idea screening: Organization may have various ideas but it should find out which of these ideas can be translated into concepts.c. 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. In an interview to Times of India. and using new technology like aerospace adhesives instead of welding. The external source includes customers. chairman TATA group discussed how his idea saw many changes from the basic version. Cavin Kare launched Ruchi pickles.
Stage 7 – Product development: during this stage. There is also scope for innovation and using the latest technology into the product. costs and profits estimated for a new product and to find out whether these align with the company mission and objectives. product is made to undergo further improvements. sales. new features or improvised versions are added to the product. 20 . The final part contains marketing mix strategy and profit goals. TATA’s initial business plan consisted sales of 2 lakhs cars per annum. market share and profit goals. – 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. – The product is introduced into the realistic market – The 4P’s of marketing are tested. distribution and marketing budget strategies.market. The second part involves product price. Stage 6 – Business analysis: it is the analysis of sales. There are certain cases where product has failed in the test marketing and had to be withdrawn. and finding self employed persons who work like agent to distribute the cars. Stage 8 – Test marketing: is the most crucial stage for the testing product’s performance and its future in the market. TATA’s fixed Rs 1 lakhs as the car price.
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