Marketing Management

Assignment: A

1) Define Marketing Management. Discuss the various management philosophies. Explain how the marketing and selling are contrasted and briefly explain the societal marketing concept.

Ans: Marketing management is the analysis, planning, implementation and control of programs designed to create, build, and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives. The various management philosophies are: a. The production concept: This concept is one of the oldest philosophies that guides sellers. The first occurs when the demand for a product exceeds the supply. The second situation occurs when the product’s cost is too high and improved productivity is needed to bring it down. b. The product concept: This concept holds that cosumers will favor products that offer the most quality, performance, and innovative features and that an organization should thus devote energy to making continuous product improvements. c. The selling concept: Many organizations follows the selling concept, which holds that consumers will not buy enough of the organization’s products unless it undertakes a large scale selling and promotion effort. d. The marketing concept: This holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do. The selling concept and the marketing concept are frequently misunderstood as same but they are two different concepts .The selling concept takes an inside-out perspective. It starts with the factory, focuses on the company’s existing products, and calls for heavy selling and promotion to obtain profitable sales. In contrast, the marketing concept takes an outside-in perspective. It starts with a well-defined market, focuses on consumer needs, co-ordinates all the marketing activities affecting customers, and makes profits by

thereby satisfying consumers and making profits. companies produce what consumers want. The societal marketing concept calls upon marketers to balance three considerations in setting their marketing policies: company profits. and society’s interests. -----------------------------------------------------------------------------------------------------------2) Explain the various factors influencing a company’s marketing strategy with the help of suitable examples. Under the marketing concept. Originally. Now many companies are beginning to think of society’s interests when making their marketing decisions. most companies based their marketing decisions largely on short-run company profit. Ans. Factors influencing company’s marketing strategy: Marketing Channels Marketing analysis Product Marketing Place Suppliers Control Pl Customers Pl anning Promotion Marketing Implementation Marketing 0000 Target M Price Marketing Planning Public Marketing Implementation . Such concerns and conflicts led to the societal marketing concept. wants and interests of target markets. they began to recognize the long-run importance of satisfying consumer wants. Eventually. The societal marketing concept is the five marketing management philosophies. and the marketing concept emerged. consumer wants.creating customer satisfaction. The societal marketing concept holds that the organization should determine the needs. It should then deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the consumer’s and the society’s well being.

If a product is perceived to be exactly like another product on the market. . Market Targeting: Market Targeting involves evaluating each market segment’s attractiveness and selecting one or more segments to enter. in the minds of target consumers. An effective marketing program blends all of the marketing mix elements into a coordinated program designed to achieve the company’s marketing objectives. Four Ps: Product. it is ready to begin planning the details of the marketing mix. Place includes company activities that make the product available to target consumers.Marketing Segmentation: The process of dividing a market into distinct groups of buyers with different needs. relative to competing products. Product means the “goods and service” combination the company offers to the target market. Place and Promotion Four Cs: Customer needs and wants. Based on its size and industry position. cost to the customer. Price. or behavior who might require separate products or marketing mixes is called market segmentation. The marketing mix constitutes the company’s tactical tool kit for establishing strong positioning in target markets. and desirable place. The marketing mix is one of the major concepts in modern marketing. Price is the amount of money customers have to pay to obtain the product. Market Positioning: A product’s position is the place the product occupies relative to competitors in consumer’s minds. Marketing strategies for competitive advantage: To be successful. consumers would have no reason to buy it. Market positioning: It is arranging for a product to occupy a clear. Promotion means activities that communicate the merits of the products and persuade target customers to buy it. convenience and communication. Developing the marketing mix: Once the company has decided on its overall competitive marketing strategy. marketing strategies must be geared to the needs of consumers and also to the strategies of competitors. the company must do a better job than its competitors of satisfying target consumers. characteristics. distinctive. the company must decide how it will position itself relative to competitors in order to gain the strongest possible competitive advantage. Thus.

Marketing Planning: Marketing planning involves deciding on marketing strategies that will help the company attain its overall strategic objectives.Managing the Marketing Effort: ANALYSIS Planning Develop Strategic plans Develop marketing plans Control Measure results Implementation Evaluate resultt Carry out the plan Take corrective action Marketing Analysis: The Company must analyze its markets and marketing to find attractive opportunities and to avoid environmental threats. ------------------------------------------------------------------------------------------------------------ . A brilliant marketing strategy counts for little if the company fails to implement it properly. Marketing Control: It is the process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that marketing objectives are attained. Marketing implementation is the process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives. Marketing Implementation: Planning good strategies is only a start toward successful marketing.

the attributes that create value cannot simply be deduced from common knowledge. 5. data must be collected and analyzed. 2. 7. As such. Briefly explain the different sources of data. But the perception of value is a subjective one. marketing research is a more general systematic process that can be applied to a variety of marketing problems. 6. most marketing research projects involve these steps: 1. Rather. 3. Marketing research covers a wider range of activities. Once the need for marketing research has been established. 8. and what customers value this year may be quite different from what they value next year. Define the problem Determine research design Identify data types and sources Design data collection forms and questionnaires Determine sample plan and size Collect the data Analyze and interpret the data Prepare the research report Defining the problem and research objectives Developing the research plan for collecting information Implementing the research plan . The goal of marketing research is to provide the facts and direction that managers need to make their more important marketing decisions. collecting and analyzing the data Interpreting and reporting the findings The different sources of data: SECONDARY DATA Before going through the time and expense of collecting primary data. one should check for secondary data that previously may have been collected for other purposes but that . Ans: Managers need information in order to introduce products and services that create value in the mind of the customer. While it may involve market research.2) What is marketing research? Discuss the marketing research process with the help of an example. 4.

PRIMARY DATA Often. purchase intentions. Observation is less versatile than communication since some attributes of a person may not be readily observable. Observation typically is more accurate than communication. Observation involves the recording of actions and is performed by either a person or some mechanical or electronic device. knowledge. secondary data must be supplemented by primary data originated specifically for the study at hand. One also should consider who the source is and whether the results may be biased. such as sales invoices and warranty cards. awareness. intentions. behavior Primary data can be obtained by communication or by observation. Communication involves questioning respondents either verbally or in writing. While useful.a person's motives are more stable than his/her behavior. Communication usually is quicker and cheaper than observation.for example. such as attitudes. Some secondary data is republished by organizations other than the original source. Some common types of primary data are:        demographic and socioeconomic characteristics psychological and lifestyle characteristics attitudes and opinions awareness and knowledge . Secondary data has the advantage of saving time and reducing data gathering costs. Secondary data may be internal to the firm. Because errors can occur and important explanations may be missing in republished data. or may be external to the firm such as published data or commercially available data. The disadvantages are that the data may not fit the problem perfectly and that the accuracy may be more difficult to verify for secondary data than for primary data. Motivation .can be used in the immediate study. and motivation. ------------------------------------------------------------------------------------------------------------ . so motive is a better predictor of future behavior than is past behavior. since one needs only to ask for the information. though observation using scanner data might be quicker and more cost effective. however. one should obtain secondary data directly from its source. intentions are not a reliable indication of actual future behavior. brand awareness Intentions . The government census is a valuable source of secondary data. Observation also might take longer since observers may have to wait for appropriate events to occur. This method is versatile.for example. the response may not be accurate.

Calculate the level of sales required to achieve target total contribution for a given price and marketing expenditure level: (proposed total direct and traceable fixed costs plus target total contribution) divided by PVCM.3) What do you mean by productivity analysis? Differentiate between productivity analysis and profitability analysis. Specifically. a productivity analysis involves the estimation of relationships between prices or one or more marketing expenditure (such as advertising budgets) and the sales volume or market share of a particular product or product line. Based on estimated productivity of the proposed price and marketing expenditure. d. Establish the target level of total contribution. STEPS IN THE DIRECT APPROACH TO MARKETING BUDGETING a. market share. c. Calculate the expected company sales(market share X industry sales forecast) d. Determine whether the sales. directly estimate company sales instead of market share) c. and total contribution levels are acceptable given the product objectives STEPS IN THE INDIRECT APPROACH TO MARKETING BUDGETING a. Estimate the marketing share that will result from a given price and marketing expenditure level(if no industry sales are available. What are the different steps in the direct and indirect approaches to marketing budgeting? Ans: Productivity analysis is the assessment of the sales or the market share consequences of a marketing strategy. determine whether the required sales and market share can be achieved. Calculate the required market share: required level of sales divided by industry sales forecast. Calculate variable contribution(company sales X PVCM) e. Calculate total contribution(variable contribution margin less direct and traceable fixed costs included in proposed budget) f. Whereas profitability analysis is the assessment of the impact of marketing strategies and programs on the profit contribution that can be expected from a product or product line. b. Develop an industry sales forecast(where feasible) b. .

among competitor’s customers and in current customer base. Determine whether the required market share and required sales will acceptable for the given product objectives. with the pattern typically broken into four stages. -----------------------------------------------------------------------------------------------------------5) Write short notes on any three of the following: a) Competitive Parity Analysis: This approach relies on historical experiences but is designed to consider relative marketing effort explicitly. The four stages are usually defined as follows: a. c) Product Life Cycle The product life cycle represents a pattern of sales over time. buyers must be educated about what the product does. Introduction: The product is new to the market. b) Basic elements of a marketing Strategy: Target market selection – All buyers in the relevant market. a manger may find a very high correlation between a product’s market share.     Its Share of industry advertising expenses The number of sales calls made relative to competitors sales calls. Type of demand to be stimulated – Primary demand. Because there are therefore no direct competitors. selective demand. The relative number of retail accounts that carry the product. The price of the product relative to the average industry price. If not. determine whether the sales or marketshare objectives can be reached with the proposed budget. For example. when competing products are highly similar in quality. in new served markets.e. . how it is used. who it is for and where to buy it. buyers in one or more segments. among new users.

repeat purchasers. d. Growth: The product is now more widely known and the sales grow rapidly because new buyers enter the market.b. managers must also employ judgment in media scheduling decisions because some of the attributes of media are not easily measured. Consumers are now knowledgeable about the alternatives. Because the cost. Maturity: Sales growth levels off as nearly all potential buyers have entered the market. However. size and characteristics of each media alternative are generally known. length and position of an advertisement Determining the desired reach and frequent distribution of messages . Decline: Sales slowly decline because of changing buyer needs or because of the introduction of new products that are sufficiently different to have their own life cycles. c. ------------------------------------------------------------------------------------------------------- Assignment: B 1) a) What do you mean by media scheduling? Explain the procedure for evaluating advertising programs with help of suitable examples. Ans: An advertising’s success in achieving the advertising objectives depends largely on how well each show or magazine reaches buyers in the target market segment.     Selecting the type of medium to use Selecting specific vehicles for consideration Determining the size. managers can employ some quantitative tools in media scheduling. dominate sales and product innovations to minor improvements. audience.

Personal Selling . banner ads.Procedures for evaluating specific advertisements a. equipment. emails. in which cash. In-store display. premiums. Theatre Tests: Theatre audience is asked to brand preferences before ad and after an ad is shown in context of a TV show. Recall Tests: Estimate the percentage of people claiming to have read a magazine who can recall the ad and its contents. It is an act of helping and persuading through the use of oral presentation of products or services. Billboard. advertisements in Television. Broachers’ and Catalogs. and special exhibits and trade promotions. best liked. services. Advertising . 2. The two basic classifications of sales promotion are consumer promotions. Paid promotion and presentation of goods. Target audience may vary . motion pictures. Direct mails.This is a process by which a person persuades the buyer to accept a product or a point of view or convince the buyer to take specific course of action through face to face contact. Print advertisements. retailers or wholesalers that is designed to achieve a specific. posters are some of the examples of advertising. free samples. including coupons. They are: 1. ideas by a sponsor comes under the advertisement.Any paid form of non-personal communication through mass media about a service or product or an idea by a sponsor is called advertising. b) Define Sales promotion and discuss the different elements of promotion-mix with the help of suitable examples. web pages. b. merchandise. c. There are seven main elements in a promotional mix. d. or other resources are awarded to retail or wholesale firms or to their personnel. It is done through non personal channels or media. Opinion Tests: Potential audience members are asked to rank alternative advertisements as most interesting. Recognition Tests: Estimate the percentage of people claiming to have read a magazine who recognize the ad when it is shown to them. Radio. Ans: Sales promotion is any short-term offer or incentive directed toward buyers. most believable. immediate response.

this form of promotion is not paid for by the sponsor. sales presentations. It can originate with the media or the marketer. television etc. Examples: Sales Meetings. speeches. samples and telemarketing etc. and exhibitions. trade shows. Sales promotion . rebates. 7 Direct Marketing is reaching the customer without using the traditional channels of advertising such as radio.from product to product and situation to situation. personnel etc. It is an avenue for the producers to get an instant response from the potential consumers of the products. The message is in the hands of media and not controlled by the organization/firm. tie-ins. newspaper. and is published or broadcast at no charge for media space and time. Unlike advertising. Thus. 4. product samples. Publicity: Non-personal stimulation of demand for a product. charitable contributions.desired response from the target audience or intermediaries which includes wholesalers and retailers. fliers etc. and seminars. service or business unit by generating commercially significant news about it in published media or obtaining favorable presentation of it on radio. 5 Corporate image . 6 Exhibitions: Exhibitions provide a chance to try the product by the customers. It stimulates consumer demand. actions. Coupons. Examples: Contests. It can be of face-to-face or through telephone contact. its products. trade-ins. This type of . Examples: Magazine and Newspaper articles/reports. consumers are less willing to buy a product from this company as they would have been. In other words personal selling is a person to person process by which the seller learns about the prospective buyer's wants and seeks to satisfy them by making a sale. television or any activity that offers an incentive for a limited period to obtain a distribution. if the company had a good image. publicity is news carried in the mass media about an organization. sweepstakes. market demand and improves product availability. 3.It is important to create a good image in the sight of general public as the Image of an organization is a crucial point in marketing. If the reputation of a company is bad. Publicity can be favorable (positive) or unfavorable (Negative). self-liquidating premiums. issue advertising. sales training and incentive programs for intermediary sales people. radio and television presentations. policies.

------------------------------------------------------------------------------------------------2) Discuss the marketing plan for a consumer product of your choice and briefly explain the marketing planning process. street reaches the targeted consumers with techniques such as promotional letters. . and catalogue.