National Institute of Business Management

Chennai - 020 FIRST SEMESTER EMBA/ MBA Subject : Marketing Management

Attend any 4 questions. Each question carries 25 marks (Each answer should be of minimum 2 pages / of 300 words)

1. Examine the developments in the concept and practice of Marketing.

The Five Concepts Described The Production Concept. This concept is the oldest of the concepts in business. It holds that consumers will prefer products that are widely available and inexpensive. Managers focusing on this concept concentrate on achieving high production efficiency, low costs, and mass distribution. They assume that consumers are primarily interested in product availability and low prices. This orientation makes sense in developing countries, where consumers are more interested in obtaining the product than in its features.

The Product Concept. This orientation holds that consumers will favor those products that offer the most quality, performance, or innovative features. Managers focusing on this concept concentrate on making superior products and improving them over time. They assume that buyers admire well-made products and can appraise quality and performance. However, these managers are sometimes caught up in a love affair with their product and do not realize what the market needs. Management might commit the better-mousetrap fallacy, believing that a better mousetrap will lead people to beat a path to its door.

The Selling Concept. This is another common business orientation. It holds that consumers and businesses, if left alone, will ordinarily not buy enough of the selling companys products. The organization must, therefore, undertake an aggressive selling and promotion effort. This concept assumes that consumers typically sho9w buyi8ng inertia or resistance and must be coaxed into buying. It also assumes that the company has a whole battery of effective selling and promotional tools to stimulate

more buying. Most firms practice the selling concept when they have overcapacity. Their aim is to sell what they make rather than make what the market wants.

The Marketing Concept. This is a business philosophy that challenges the above three business orientations. Its central tenets crystallized in the 1950s. It holds that the key to achieving its organizational goals (goals of the selling company) consists of the company being more effective than competitors in creating, delivering, and communicating customer value to its selected target customers. The marketing concept rests on four pillars: target market, customer needs, integrated marketing and profitability. Distinctions between the Sales Concept and the Marketing Concept:

1. The Sales Concept focuses on the needs of the seller. The Marketing Concept focuses on the needs of the buyer.

2. The Sales Concept is preoccupied with the sellers need to convert his/her product into cash. The Marketing Concept is preoccupied with the idea of satisfying the needs of the customer by means of the product as a solution to the customers problem (needs).

The Marketing Concept represents the major change in todays company orientation that provides the foundation to achieve competitive advantage. This philosophy is the foundation of consultative selling.

The Marketing Concept has evolved into a fifth and more refined company orientation: The Societal Marketing Concept. This concept is more theoretical and will undoubtedly influence future forms of marketing and selling approaches.

The Societal Marketing Concept. This concept holds that the organizations task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors (this is the

original Marketing Concept). Additionally, it holds that this all must be done in a way that preserves or enhances the consumers and the societys well-being.

This orientation arose as some questioned whether the Marketing Concept is an appropriate philosophy in an age of environmental deterioration, resource shortages, explosive population growth, world hunger and poverty, and neglected social services. Are companies that do an excellent job of satisfying consumer wants necessarily acting in the best long-run interests of consumers and society?

The marketing concept possibily sidesteps the potential conflicts among consumer wants, consumer interests, and long-run societal welfare. Just consider: The fast-food hamburger industry offers tasty buty unhealthy food. The hamburgers have a high fat content, and the restaurants promote fries and pies, two products high in starch and fat. The products are wrapped in convenient packaging, which leads to much waste. In satisfying consumer wants, these restaurants may be hurting consumer health and causing environmental problems.

2. Explain the concept and importance of todays Service Marketing.

3. Explain the importance of consumer behavior for marketers.

A perspective of marketing is about making a consumer realise that they want your product, even though initially they might not.

Therefore it is important for marketers to understand how consumers behave when they are exposed to particular advertising methods and messages. For example. Consumer behavioural theories such as the process of innovation diffusion is vital for marketers as it allows us to understand how different market segments, which have different purchasing and thinking characteristics might

decide whether or not to buy a product. For example - for a consumer in a relatively high social status earning reasonable money, a purchase of a laptop might not be such as high involvement purchase since they have the disposable income to afford it plus, if they are young to middle age, the chances are they know exactly what they want to get out of the product since they have been brought up in a generations where computers run our every day lives. On the other hand, if the laptop was to be marketed at a OAP, their consumer behaviour to such product will change the overall marketing effort to persuade such consumers that they want the product. OAP for example may not know exactly what a laptop can do for them, and if they are living on a pension, such product may seem very expensive and carries high amounts of purchasing 'risk' since they might not fully understand whether the product can solve their initial need to buy the product. If we relate back to the innovation diffusion model and general purchasing decision making process theories, marketers may then have to increase the amount of information within their marketing campaign in order to communicate exactly what the laptop can do for them and how the price justifies they benefit.

If you look at consumer behaviour in another perspective, many marketers and marketing campaigns rely on people buying their product due to the self concept theories of consumer behaviour. Products such as Sony laptops rely on people wanting to spend the extra money on their laptops rather than a competitor such as del who may have the same spec for a far lower price because people buy into brands like Sony to show off their image / status. If you see someone on a train with a dell laptop, you may not take a second look. Meanwhile, someone using a Sony laptop; people may think Wow, thats pretty cool and may start associating the user as successful and wealthy. Therefore, the Sony laptop user has may have spent the extra money on Sony rather than dell in order to portray this reaction and create a positive self image for himself. Look up a theory called the looking

glass self theory (Cooley 1902 or 1922). If brands can understand such form of consumer behaviour, it works hand in hand with brand management and product positioning since once the marketers have generated a positive, prestige image about their products, they then rely on other consumers buying into this form of 'quality' and portraying their positive self image from using this product to other consumer who then may think ... 'that guy looked cool... i want to buy one'.... Another very important consumer behaviour concept for marketers is how consumers learn about a product. Does a marketing campaign want to use cognitive learning approaches in its advertising i.e. whereby our product will be associated with a band or a type of music or do we want to use a form of instrumental or behavioural learning approaches - A market needs to think what type of consumers they are targeting, look at their general characteristic and then work out what is the best approach to generate their overall campaign objectives. For example, cognitive learning approaches are used (by theory) on more educated consumers as theorists believe they have more ability to make a cognition between i.e a song and a product - Check out some Sony adverts - For example, every time people heard that Jose Gonzalez tune back in 2005, people immediately thought of thousands of coloured balls rolling down a hill in San Francisco then they thought of Sony

So there you go - thats a few reasons why consumer behaviour is vital to understand - because it is the basis of how you are going to target your prime target audience.

4. What is the meaning of Advertisement and its difference with publicity? Explain.

Advertising or advertizing[1][2][3] is a form of communication for marketing and used to encourage, persuade, or manipulate an audience (viewers, readers or listeners;

sometimes a specific group) to continue or take some new action. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common. This type of work belongs to a category called affective labor.[citation needed] In Latin, ad vertere means "to turn toward."[citation needed] The purpose of advertising may also be to reassure employees or shareholders that a company is viable or successful. Advertising messages are usually paid for by sponsors and viewed via various traditional media; including mass media such as newspaper, magazines, television commercial, radio advertisement, outdoor advertising or direct mail; or new media such as blogs, websites or text messages. Commercial advertisers often seek to generate increased consumption of their products or services through "branding," which involves associating a product name or image with certain qualities in the minds of consumers. Non-commercial advertisers who spend money to advertise items other than a consumer product or service include political parties, interest groups, religious organizations and governmental agencies. Nonprofit organizations may rely on free modes of persuasion, such as a public service announcement (PSA).

There's A Difference Between Advertising and Publicity!

Using Advertising and Publicity are very effective methods to promote and create positive awareness for you and your business. But... there is a clear difference between Advertising and Publicity. Advertising is something you get by paying for it. Publicity however, is something you hope you'll get. Why? Because publicity can be generally gained at no cost to you. And... it generally has many times the credibility of advertising. Here's what we mean: There are some experts like Al Reis, author of the superb marketing text, "Positioning: The Battle For Your Mind," that believe a majority of companies shouldnt waste their money on advertising until they have established name recognition and credibility through Public Relations and publicity. Others will tell you that a combination of both advertising and PR are required. But one thing's for certain: Every expert agrees, "that you cant just put up your web site, open your store, offer your service or manufacture a product and then not do anything to attract customers!" So... advertising is content you pay for (radio, tv, newspaper, banner advertising, etc). Publicity on the other hand, refers to free content about you and your company that appears in the media. It's what others what others say about you. Publicity can result when an article you write is published, or when information you give to an editor convinces him/her to feature a story about you or is based on a publicity release issued by a Public Relations firm you have retained. Over time, these stories help create a favorable impression of your product or services. The average person has no real idea of how the media find their stories, but the prevailing view seems to be that reporters go out and find all of their news. This is simply not realistic thinking! There just arent enough reporters on the planet to find every bit of news worth covering. So if

you can present your information convincingly, there's a good a chance that you'll gain the interest of the media. So how can I get publicity for my company? Well...let's deal with the Internet here. The Internet or World Wide Web, has its own rules about commercialism, and it usually is disastrous to those who break them. If your press releases, postings or articles are blatant self-promotion or a sales pitch instead of truly useful information they will be ignored and wont be used. Worse, you risk the negative publicity of being flamed (you and your company being strongly put down online, or you'll receive quantities of unwanted and negative e-mail). So... here's a simply philosophy to follow: "Before you put out a public message, play "who cares?" and ask yourself "why would other people be interested in what I have to say?" or "how can people benefit from the information I am supplying?" If you can't come up with solid, positive answers to these questions, then keep working on your publicity release or article until you do.

5. Explain the process of recruitment.

Step 1: Understand your need job analysis.

Ok so you have decided you need to take on more staff because you have got more business, need to spend more time on sales or whatever. Great. But do you really know what you need?

Critically evaluate your existing resources. How does that measure up to what you need going forward. This gap, which might be described in functional terms like tasks, responsibilities, skills is the basis of defining the role. It is important to go one step further though and consider what would someone who is doing the job well look like. Always aim for a high performance level not an average one. Look at the existing team dynamics how it works together, who fills what team role and is there anything missing. It might be worth using some psychometric profiling like Myers Brigg or DISC to help in this process both can also be used as part of the selection process to get a fit.

Related: 5 Tips On How To Give A Great Job Interview

# Step 2: Understand what you want

It isnt just about what you need for the business but about the type of person you want, or more precisely the type of organisation you want to create or maintain. Broadly speaking what I am talking about is culture the way we do things around here.

It is about the values and ethos you want your business and the people in your business to promote. It is about how you communicate with each other, the level of engagement and involvement, the way customers and suppliers are dealt with, the degree of flexibility and were all in this together that you need, the image your business portrays and so on. It is a fundamental part of your brand. It is important therefore that each person you bring into the business reflects and buys into that culture.

# Step 3: Write a job description

By now you should know the following:

Broadly what the role entails (definition) The tasks, responsibilities and accountabilities involved What a good performer looks like and what competencies i.e. skills, knowledge and attitudes are necessary to achieve that What challenges and opportunities will be involved What type of person will fit your organisation the personal characteristics

These elements basically make up your Job Description or Job profile and shouldnt just be used for the recruitment process, but form the basis of your selection criteria, your training plans, goal / target setting and performance review. Related: Six Great Employee Hiring Ideas For The New Economy

# Step 4: Decide on your selection process and criteria

Once you have decided what you need and want and have written your job description you should figure out how you are going to receive applications and assess and select candidates. Applications are typically by CV and perhaps cover letter or by application form. Some organisations opt for online processes. It really depends on what you prefer. Interviewing is the most common form of assessment, with competency-based interviewing being the most robust interview method (it is proven to be the best in terms of predicting or assessing future performance capability).

In addition you might want to consider shortlisting as a first step this is a CV screening process and is usually based on some limited essential criteria. Given the high volumes of CVs being received currently this is a sensible addition to the process. You should also consider aptitude tests and / or psychometric tests. These should never be used as the only selection method but rather as an additional aid.

The criteria should be clear (and based on your Job description) and you should devise a marking system this will make the selection process much easier, not to mention more reliable and transparent.

# Step 5: Identify sources and launch search

Now that you have all the ground work done think about where you can find suitably qualified candidates.

You can of course resort to newspaper adverts and recruitment agencies. More likely though you will go the route of Jobs Boards / websites. But please dont forget your networks and contacts. LinkedIn, Twitter and Facebook are all valid (and increasingly popular) sources.

The more targeted you can be, the better the outcome. Networks are probably the most cost effective way of targeting new employees but may not always be the most efficient. Related: 6 Ways Companies Can Motivate Smarter

# Step 6: Shortlist candidates

Using the criteria you have already set and taking pen and paper sift through all of the CVs and identify those that meet the requirements. You may want to have a marking system for particular criteria this will make life easier if you have a large number who meet this first stage but only want to progress a small number to the next stage of the process.

# Step 7: Make your selection Interview, assessment, reference check, medical dig deep
Once you have your shortlist of candidates you will move to the next stage. We have already mentioned the value of psychometric testing.

In terms of interview you may decide to do one, two or several. You can conduct telephone interviews, one-to-one or panel.

In any case what is most important is that you know in advance what you are going to ask, that it is based on assessing the extent to which the person meets the criteria and that you dig beyond the surface.

Lots of people are polished at interview and will give good textbook answers you need to know that they can do what they say. The best way of assessing this

is by asking for examples of where they have done a similar thing before probing their answers. Following on from the interview stage(s) when you have a preferred candidate or even two or three preferred candidates, conduct reference checks and a medical assessment. These are really important and can save you an enormous amount of grief down the line.

A word of warning make sure you know what questions you should not ask at interview and what checks you are allowed to do. Related: Motivate Your Employees When Times Are Tough

# Step 8: Offer
You should now have a top preferred candidate so time to make an offer. The offer should include: 1. details of salary, 2. job role 3. and responsibilities etc. You should never make an offer before completing Step 7 but if you do, please ensure it is conditional on a satisfactory outcome to checks and medical. The offer should also be subject to the candidate having provided you with accurate and honest information.

# Step 9: Onboarding and Training

So the offer has been made and accepted and the person is ready to go. What next? All too often a new employee arrives to a damp welcome. The manager / boss is too busy to meet with him / her or isnt even on-site. No one is quite sure what the newbie is supposed to be doing so they all just get on with their own work. I know this sounds exaggerated but you get the point Im sure. So what should happen?

Well there should be some form of induction rules, regulations, health and safety and other policies should be explained, introductions made, arrangements made to ensure the newbie has a buddy for lunch. Expectations should be clearly outlined in terms of behaviors and performance. Set and agree performance objectives make sure you and they know what they will be measured on. Any training plans should be explained and initiated as quickly as possible.

This is the onboarding period getting the newbie settled in, ensuring they become part of the team as quickly as possible and that they become productive as quickly as possible. A little time spent at this stage can reap huge rewards later. Related: 12 Ways To Improve Productivity At The Workplace

# Step 10: Review

There are two elements of review needed. Firstly look back over the recruitment and selection process. Did it go as well as you had hoped? What could have been improved upon. More importantly is the review of the new employees performance. You should always include a probationary period in your contract (and offer) at least six months.

During that time you (or the line manager) should meet regularly with the employee to review performance and address any issues. If there are problems you need to know and deal with them quickly. If they dont work out then it is much easier to terminate a contract during or at the end of the probationary period. In my opinion the recruitment process does not end until the employee has satisfactorily completed this period.

6. Explain the techniques and methods for designing organization structure.

25 x 4=100 marks