Master of Business Administration- Semester 2 MB0046 –Marketing Management - 4 Credits (Book ID: B 1629) Assignment Set -1 Q1.

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

the relevant background information. Once the problem has been precisely defined. such as focus groups. interviews with industry experts. analysis of secondary data. and identifying characteristics or factors that can influence the research design. and. training. the research can be designed and conducted properly. or computer-assisted personal interviewing). by conducting a survey or an experiment) must be addressed. some qualitative research. observation. 2. It is also necessary to design a questionnaire and a sampling plan to select respondents for the study. supervision. 8. and how it will be used in decision-making. determine possible answers to the research questions. formulating the research design involves the following steps : 1. 5. Step 3: Research Design Formulation A research design is a framework or blueprint for conducting the marketing research project.Q-2 Explain the steps in Marketing Research Process. 3. The issue of how the data should be obtained from the respondents (for example. analysis of secondary data. 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. precisely defining the variables. perhaps. and designing appropriate scales to measure them are also a part of the research design. analytical models. what information is needed. mall intercept. 4. hypotheses. It details the procedures necessary for obtaining the required information. qualitative research and pragmatic considerations. as in the case of personal interviewing (in-home. More formally. Conducting exploratory research. Problem definition involves discussion with the decision makers. Answer -Stages/Steps in marketing research Step 1: Problem Definition: The first step in any marketing research project is to define the problem. or through mail (traditional mail and mail panel surveys with persecuted households). the researcher should take into account the purpose of the study. Proper selection. This process is guided by discussions with management and industry experts. Secondary data analysis Qualitative research Methods of collecting quantitative data (survey. Step 5: Data Preparation and Analysis . In defining the problem. and provide the information needed for decision making. research questions. 6. 7. and its purpose is to design a study that will test the hypotheses of interest. from an office by telephone (telephone or computer-assisted telephone interviewing). case studies and simulations. and evaluation of the field force help minimize data-collection errors. Step 2: Development of an Approach to the Problem Development of an approach to the problem includes formulating an objective or theoretical framework.

the research design. The Marketing Plan is widely used by both large corporate marketing departments and also by small startup companies. The findings should be presented in a comprehensible format so that they can be readily used in the decision making process. if there are several measurements of each element. Marketing Plan B. The data from the questionnaires are transcribed or keypunched on to magnetic tape. Q3. Is a key component in obtaining funding to pursue new initiatives? The Marketing Plan is generally undertaken for one of the following reasons: 1. In addition. Essentially the Marketing Plan:     Forces the marketing personnel to look internally in order to fully understand the results of past marketing decisions. Number or letter codes are assigned to represent each response to each question in the questionnaire. or. On the other hand. gives meaning to the data that have been collected.Data preparation includes the editing. figures. but is critical for explaining where a company intends to go in the future. and graphs to enhance clarity and impact. or trying a new strategy to fix an existing problem. Sets future goals and provides direction for future marketing efforts that everyone within the organization should understand and support. each RCH variable is analyzed in isolation. coding. Marketing Plan: -The Marketing Plan is a highly detailed. Write short notes on: A. while data analysis. Needed for a specialized strategy to introduce something new. and presents the results and the major findings. It is particularly important for marketers who seek funding for new projects or to expand existing products or services. Needed as part of the yearly planning process within the marketing functional area. or disks or input directly into the computer. In many respects. such as a new business proposal to the financial community? . Univariate techniques are used for analyzing data when there is a single measurement of each element or unit in the sample. if necessary. well written report that many inside and possibly outside the organization will evaluate. describes the approach. data collection. and. and verification of data. Is a component within an overall business plan. corrected. transcription. and a data analysis procedure adopted. Verification ensures that the data from the original questionnaires have been accurately transcribed. multivariate techniques are used for analyzing data when there are two or more measurements on each element and the variables are analyzed simultaneously. an oral presentation should be made to management using tables. 2. Step 6: Report Preparation and Presentation The entire project should be documented in a written report which addresses the specific research questions identified. heavily researched and. such as new product planning. or edited. Forces the marketing personnel to look externally in order to fully understand the market in which they operate. guided by the plan of data analysis. 3. Each questionnaire or observation form is inspected. the Marketing Plan is the most important document produced by marketers as it not only helps to justify what has occurred in the past. hopefully. entering new markets. Marketing Planning process Answer -A.

Performance Analysis and Implementation Additional Consideration Methods for collecting and preparing quantitative information.This process includes field work and desk work for collecting all relevant data and information. 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. The reason . Q4. It may include a combination of specific approaches like telephone survey.There are many ways to develop and format a marketing plan. Answer. 3. Given below is a typical market research process which is depicted stage-wise: Picking out the appropriate methodology. Designing sample Questionnaire. Describe the international market entry strategies in brief. Desk work includes contacting personals over telephone or via series of emails and web meetings. B.Choosing the correct market entry strategy is critical to your long-term success. one-to-one interviews. organization and collection. Formulating case studies and sampling process. Hence some of the interlinked stages could be conducted repeatedly and some of the stages can also be omitted. 2. Determining the need of this information. 5. secondary research etc. Marketing Planning process The market research process involves a round of separate stages of data interpretation. 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. Scaling and measuring procedures. 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. web or email survey. Planning information analysis. 4. but it depends on an organization how they have encapsulated their strategies to follow this process. Involving experienced and trained executive for this helps in reducing data collection errors. 6. Exporting Direct exporting is that the market entry strategy chosen by most small companies. Data Collection Process. . This could take comparatively more time as compared to the field work.A specific methodology is entailed by the research professional after identifying the specific needs and exploring the case studies. These stages could be considered as a benchmark of market research. The approach taken here is to present a 6-Part plan that includes: 1.

but not necessarily. as they are commonly referred to is the most sophisticated of the partnership trio.. A formal partnership is when you have a legal agreement to market or produce your service or product with detailed objectives and targets defined. 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. Direct exporting is the most basic entry into international markets. However. 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. 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 Joint ventures. It is important to understand the difference between an agent and a distributor. In short you become a local firm by doing this and have the advantage of being treated as a local company. Local partners provide “on the ground” knowledge and this can be immensely important in foreign markets. Licensing Licensing. An informal arrangement is one where your firm agrees with a local firm to work together to market or produce your product or service. 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. . having complete control of your operations and there is a shorter curve in learning about the local market. A JV is the formation of a third independent company owned. Direct exporting involves the use of agents or distributors. Joint Ventures/Partnerships/Strategic Alliances Perhaps the most appropriate and valuable strategy for entering a foreign market is to work with a local partner. if you can find a good one. there are different types of “partners” and each need to be evaluated depending on your firm’s particular requirements and capabilities. as a market entry strategy.for this is quite straightforward. managed by the partners. Partnerships Partnerships can be formal or informal. Strategic Alliances Strategic alliances are simply a business-to-business collaboration. However. you will need to make the largest investment in accessing the market if this is the strategy you choose. 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.

On the other hand. sacrificing high sales to gain a high profit is therefore "skimming" the market. are more reliable or desirable. goods are sold at higher prices so that fewer sales are needed to break even. Discuss the various Price adjustment options adopted by the companies . When costs are already at their lowest and sales are hard to find. Q5.this can be attributed to: their need for the product outweighing their need to economise. adopting a better pricing strategy is a key option to stay viable. especially in a poor economy. or represent exceptional quality and distinction. Selling a product at a high price. Ans-Pricing strategies for products or services encompass three main ways to improve profits. a pulp mill to start up condition and hand over the “key” to the owner. a hydro facility. so adopting a pricing strategy is a learning curve when studying the needs and behaviors of customers and clients. a greater understanding of the product's value. Too many businesses have been lost because they priced themselves out of the marketplace.Turnkey Projects Turnkey projects are as the name implies. 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. are firstly dispatched into the market at a high price. These are that the business owner can cut costs or sell more. Early adopters generally have a relatively lower price-sensitivity . 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. This strategy is often used to target "early adopters" of a product or service. This method although simple has two flaws. You build something. Merely raising prices is not always the answer. a factory. . Creaming or skimming In most skimming. 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. based solely on the price. 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. One strategy does not fit all. too many business and sales staff leave "money on the table". such as DVD players. Models of pricing: Cost-plus pricing is the simplest pricing method. or find more profit with a better pricing strategy. or simply having a higher disposable income.

The Personal Selling Process: The personal selling process is a consecutive series of activities conducted by the salesperson. Up to 20% of a firm's customer base can be lost for reasons such as transfer. also known as aggressive pricing (also known as "undercutting"). Prospecting . . This is done by using the product's features and advantages. It is illegal in some countries. The Pre-approach This stage involves the collecting of as much relevant information as possible prior to the sales presentation. the sales presentation is delivered. Contribution margin-based pricing Main article: Contribution margin-based pricing Q6. Step Four The Sales Presentation After the prospects interest has been grasped. This involves a "persuasive vocal and visual explanation of a business proposition". Define Personal selling and also explain the personal selling process? Answer. Some small talk may be necessary to reduce tension but the purpose always remains business.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. takeovers. A steadily growing list of qualified prospects is important for reaching the sales targets. death. Saves you 20% on replacement cost. The Approach The salesperson should always focus on the benefits for the customer. This is known as the FAB technique (Features. The pre-approach investigation is carried out on new customers but also on regular customers. intended to drive out competitors from a market. retirement. usefulness and how to organise the information for easy access and effective use. Advantages and Benefits). Benefits : Refers to the benefits for the prospect. dissatisfaction with the company and competition. It should be done in a relaxed atmosphere to encourage the prospect to share information in order to establish requirements. Eg. Systematic collection of information requires a decision about applicability.Predatory pricing Main article: Predatory pricing Predatory pricing. 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.

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. The prospect may not be fully convinced and the issues raised are thus very important. It also assists the salesperson to establish exactly what is on the prospect's mind. Known as a temperature question .  .Step Five The Trial Close The trial close is a part of the presentation and is an important step in the selling process. The prospect is in fact requesting additional information to help him to justify a decision to buy.

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