MBA ASSIGNMENT

MB0046- MARKETING MANAGEMENT

Q.NO-1 Suppose you are the Marketing manager of a banking firm. Your bank has
opened its first branch overseas. What factor do you think will affect the choice of
marketing the most and why?
Ans. Environmental scanning is a careful monitoring of an organization’s internal
and external environments for detecting early signs of opportunities and threats
that may influence its current and future plans. It’s totally based on the
environmental analysis.

Demographics:
Demographic are a study which is based on factors such as age, sex, economics
status level of education, income level and employment, among others.
Demographics are used by governments, corporations and non government
organizations to learn more about a population’s characteristics for many
purposes, including policy development and economic market research.

Political and legal environment:

Political climate for a global firm is stable and friendly; organizations may still
profit and succeed in traditionally unfavorable conditions. The most important
idea is that the government is stable and the set of rules or codes of behavior that
affect business are predictable and adaptable. If the potential for the profit exists
and is permitted by government policies, a global firm can still function. There are
five main political policies causes of instability that affect the international
markets.
 Some forms of government seem to be inherently unstable
 Changes in ruling political parties
Extreme nationalism
 Any moist targeted towards specific countries
 Trade disputes

Legal environment:
It is important to know the rules you must play by. There are four major bases for
legal systems.
 Common law : found in the UK , US , CANADA and other countries under
English influence
 Islamic law: derived from the Koran and found in Islamic states
 Commercial legal system: found in Marxist socialist economies and states
like china, and the former soviet union
 Civil or code law: found in Germany, France, Japan and non Islamic and non
Marxist countries

Socio cultural environment:

Socio cultural environment is a set of beliefs, customs, practices and behavior that
exists within a population. International companies often include an examination
of the socio cultural environment prior to entering their target markets.
Environmental scanning is one of the essential components of the global
environmental analysis. Environmental scanning can be defined as the study and
interpretation of the political, economic, social and technological events and
trends which influence a business, an industry or even a total market. The factors
which need to be considered for environmental scanning are events, trends issues
and expectations of the different interest groups. Issues are often forerunners of
trend breaks.
Q.NO-2: A brand is a composite set of beliefs and associations in the mind of
consumers. In brand development, as a part of branding strategy decision, the
brand manager can decide to create new brand elements for the new products,
apply some of the existing brand elements to the new product, or use a
combination of existing and new brand elements to the existing and new
products. Explain the different branding strategies used by the companies for
their range of products.
Ans. A distinguishing symbol, mark, logo, name, word, sentence or a combination
of these items that companies use to distinguish their product from others in the
market. Once a brand has created positive sentiment among its target audience,
the firm is said to have built brand equity. Some examples of firms with brand
equity- possessing very recognizable brands of products are Microsoft, coca-cola,
Ferrari, Sony, the gap and nokia. Legal protection given to a brand name is called
trademark.

Advantage of brand:
Successful brand building helps profitability by adding values that customers are
prepared to pay for. Strong brands inspire customer loyalty leading to repeat
sales and word of mouth recommendation. The brand owner can usually charge
higher prices, especially if the brand is the market leader. Better access to
distributors and other sellers usually wants to stock top selling brands. With
limited shelf space it is more likely the top brands will be on the shelf than less
well-known brands. Good branding gives a company several advantages including
establishing a positive reputation and building an image attractive to consumers.
Branding develops an image of a company’s products in the minds of consumers,
attributing goods with certain unique qualities or characteristics that if done
effectively, are attractive to the target audience.
Different branding strategies adopted by the companies:
A branding strategy helps a product within the market and to build a brand that
will grow and mature in a saturated marketplace.
 Attitude branding is the choice to represent a larger feeling, which is not
necessarily connected with the product or consumption of the product at
all.
 Iconic brands are defined as having aspects that contribute to the
consumer’s self-expression and personal identity.
 In “no brand” branding, the product is made conspicuous through the
absence of a brand name.
 In derived branding, some suppliers of key components may wish to
guarantee its own position by promoting those components as a brand in
its own right.
 Cannibalization is a particular problem of a multi brands strategy approach,
in which the new brand takes business away from an established one which
the organization also owns. This may be acceptable if there is a net gain
overall
 In crowd sourcing branding, brands are created by the people for the
business, which is opposite to the traditional method where the business
creates a brand.
 Brands whose value to consumers comes primarily from having identity
value are said to be “identity brands. “Some brands have such a strong
identity that they become “iconic brands” such as apple, Nike, and Harley
Davidson.
Q.NO 3- Describe the international market entry strategies in brief.
ANS. Joint ventures- a joint venture is a business agreement in which the parties
agree to develop, for finite time, a new entity, and new assets by contributing
equity. They exercise control over the enterprise and consequently share
revenues, expenses, and assets. There are other types of companies such as JV
limited by guarantee, joint ventures limited by guarantee with partners holding
shares. The venture can be for one specific project only- when the JV is referred
to more correctly as a consortium or a continuing business relationship. The
consortium JV is formed where one party seeks technological expertise or
technical service arrangements, franchise and brand use agreements,
management contracts, rental agreements, for one-time contacts. The JV is
dissolved when that goal is reached.

Strategic alliances:
An arrangement between two companies that have decided to share resources
to undertake a specific, mutually beneficial project. A strategic alliance is less
involved and less permanent than a joint venture, in which two companies
typically pool resources to create a separate business entity. In a strategic
alliance, each company maintains its autonomy while gaining a new opportunity.
A strategic alliance could help a company develop a more effective process,
expand into a new market or develop an advantage over competitor, among
other possibilities.

Contract Manufacturing:

Production of goods by one firm, under the label or brand of another firm. Contract
manufacturers provide such service to several (even competing) firms based on their own or
the customers' designs, formulas, and/or specifications. Also called private label manufacturing.

Advantages:

Why would a company opt for contract manufacturing?

 Manufactures can save significant money on labor, materials and other

expenses related to reproduction.
 Third-party contract manufactures are usually in developing countries with
an abundant supply of cheap labor and mineral regulations.
Franchising:

Franchising is the practice of the right to use a firm's successful business model
and brand for a prescribed period of time. The word "franchise" is of Anglo-
French derivation—from franc, meaning free—and is used both as a noun and as
a (transitive) verb.[1] For the franchiser, the franchise is an alternative to building
"chain stores" to distribute goods that avoids the investments and liability of a
chain. The franchisor's success depends on the success of the franchisees. The
franchisee is said to have a greater incentive than a direct employee because he
or she has a direct stake in the business.

Q.NO-4. Personal selling focuses in on personal “or one to one” selling. It involves
an individual salesman or a sales team establishing and building a profitable
relationship with customers over a period of time through a series of steps.
Explain the steps in the personal selling process which helps in the successful
sales.

Answer:

Definition of Personal Selling:

Personal selling is a promotional method in which one party (e.g., salesperson)

uses skills and techniques for building personal relationships with another party
(e.g., those involved in a purchase decision) that results in both parties obtaining
value. In most cases the "value" for the salesperson is realized through the
financial rewards of the sale while the customer’s "value" is realized from the
benefits obtained by consuming the product. However, getting a customer to
purchase a product is not always the objective of personal selling. For instance,
selling may be used for the purpose of simply delivering information.
Because selling involves personal contact, this promotional method often occurs
through face-to-face meetings or via a telephone conversation, though newer
technologies allow contact to take place over the Internet including using video
conferencing or text messaging (e.g., online chat).
Steps in personal Selling process

Personal Selling consists of the following steps.

1. Pre-sale preparation: The first step in personal selling is the selection, training
and motivation of salespersons. The salespersons must be fully familiar with the
product, the firm, the market, and the selling techniques. They should be well-
informed about the competitor's products and the degree of competition. They
should also be acquainted with the motives and behavior of prospective buyers.

2. Prospecting: It refers to locating or searching out prospective buyers who have

the need for the product and the ability to buy it. Potential customers may be
spotted through observation, enquiry, and analysis of records of existing
customers. Social contacts, business associations and dealers can be helpful in the
identification of potential buyers.

3. Approaching: Before calling on the prospects, the salesperson should fully

learn their number, needs, habits, spending capacity, motives, etc. Such
knowledge helps in selecting the right sales appeal. After such learning, the
salesperson should approach the customer in a polite and dignified way. He
should introduce himself and his product to the customer. He should greet the
customer with a smile and make him feel at home. He should introduce himself
and his product to the customer. In case he is busy with some other customer, he
should assure the new customer that he would be attended very soon. The
salesperson has to be very careful in his approach as the first impression is the
last impression.

4. Presentation: For this purpose, the salesperson has to present the product and
describe its features in brief. The presentation should be matched with the
attitude of the prospect so that the salesman can continuously hold his attention
and create interest in the product.

5. Demonstration: In order to maintain customer's interest and to arouse his

desire, the salesperson must display and demonstrate the product. He has to
explain the utility and distinctive qualities of the product so that the prospect
realizes the need for the product to satisfy his wants. He should not be in a hurry
to impress the customer and should avoid controversy. He may suggest uses of
the product and may create an impulsive urge to possess the article by appealing
to human instincts.

6. Handling objections: A sale cannot be achieved simply by creating interest and

desire. Every customer wants to make the best bargain for the money he is
spending. Presentation and demonstration of the product are likely to create
doubts and questions in his mind. The salesman should clear all doubts and
objections without entering into a controversy and without losing his temper.
Testimonials, money-back guarantee, tact, and patience are popular means of
winning over s hesitant buyers. The salesman should convince the customer that
he is making the best use of his money by purchasing the product. For this
purpose, the salesman should prove the superiority of his product over the
competitive products. He should not lose patience if the customer puts too many
queries and takes time in arriving at any decision. If the customer does not buy
even after meeting rejections, the salesman should let him go without showing
temper. He must believe in the universal rule that the customer is always right.

7. Closing the sale: This is the climax or critical point in the personal selling
process. Completing the sale seems to be an easy task but inappropriate handling
of the customer can result in loss of sale. The salesman should not force the deal
but let the customer feel that he has made the final decision. He should guide the
customer in making the choice without imposing his own view. Some adjustment
in price or other concession may sometimes be necessary for a successful closing.
The salesman should show the same interest in the customer which he exhibited
during approach stage. Sales should be closed in a cordial manner so that the
customer feels inclined to visit the shop again. In closing the sale, the article
should be packed properly and handed over to the customer with speed and
accuracy. Once the customer has purchased the article, the salesman should show
and suggest an allied product. For instance, he may suggest socks, ties,
handkerchiefs, vests, etc., to a customer purchasing a shirt. This is known as
additional sales and requires great skill and tact.

8. Post-sale follow-up: It refers to the activities undertaken to ensure that the

customer is satisfied with the article and the firm. These activities include
installation of the products, checking and ensuring its smooth performance,
maintenance, and after-sale service. It helps to secure repeat sales identify
additional prospects and to evaluate salesman's effectiveness.
Q. No5. Describe the stages in consumer decision making process.

Answer:

Explanation of consumer decision making process:

Understanding your consumer decision making process is extremely valuable for

all businesses. There are 5 important steps that a consumer makes before they
decide upon purchasing a product or using a service. What goes on in their head?
Understanding these processes will help with developing marketing strategies
targeted to the consumer.

1. Problem Recognition:

Okay, so why do people want to buy things? It’s because there is a problem, and
they are looking for the solution to their problem. This is where the marketer can
do several things to make their product or service more enticing to the consumer.
If the problem is inactive, your job as a marketer is to make that problem active.
Want an example of great marketing? Just look at how Steve Jobs came along
with the phone. No one needed it, but he made sure that the phone was
something that everyone needed to have. Think of this simple equation here:

Problem = Desired State – Current State

2. Information Search

This part of the consumer’s decision-making process is where they are looking for
more information. They search for this either internally or externally. What’s the
difference between the two? Internal search is what someone already knows,
such as pre-existing knowledge of the product or from the consumer’s memory.

3. Evaluation of Alternatives

What other options does the consumer have available to them? Some things they
will consider are effectiveness and cost. When you’re buying a new car, don’t you
look into other choices you have between other brands? The consumer can make
their choice based on attributes or attitudes. For example: “Oh wow, this new
Ford has so many great features! Hmm…but if I get this BMW, it will make me
look rich and important to all my friends.”

4. Purchase and Outlet Selection

At this fourth step, this is where the purchase finally happens. However, where
will the consumer be buying your product or ordering your services? Will they go
online or visit a physical retailer?

5. Post Purchase Evaluation

This final step is somewhere a lot of marketers just completely forget about. Are
you following up with the customer after their purchase? It’s important to build a
healthy long-lasting relationship with your customers. This is why you can’t leave
this last step out! What are you doing right now to find out if your customers are
satisfied with their buying experience?

Q. No6. Describe some of the strategies for the effective marketing and
advertising in rural market. Also explain the innovative use of media in rural
market.

Answer:

Nature if the rural market:

Planning and implementation of marketing for the rural areas. It actins a two way
marketing process, which encompasses the performance of business activities the
direct the flow of goods from urban to rural areas

 Retail is primarily classified into two sectors as: organized and unorganized
retail sector, depending on how it is undertaken.

 Organized retail sector has a single organization having large format retail
stores providing wide varieties of goods in good number of locations.

 Unorganized sector has large number of organizations having single, small

retail outlets with limited variety at single location.
Rural Marketing: It is a distinct specialization of marketing discipline, which
encompasses customized application of marketing tools and strategies to
understand the psyche of rural consumer in terms of needs, tailoring the products
to meet such needs and effectively delivering them to enable profitable exchange
of goods and services to & from the rural market.

Marketing Strategies for Introductory Stage in the Rural Market:

 Product Strategies:

o Smaller Package if it is possible

 Place Strategies:

o Creation of Distribution Networks

 Promotion Strategies:

o Edutainment

o Reaching the opinion-leaders

o Targeting the innovators or early adopters

o Category growth

 Pricing strategy:

o Introductory pricing.

o Penetration Pricing strategy

 Place Strategy:

o Strengthening relationship with Distributor

o Deepening the Penetration

 Promotion Strategies:
 o Increase in Promotional Budget

o Highlighting Quality or performance of the product

o Targeting the early Majority

Innovative use of media:

It’s no overstatement to say that social media is impacting the way our world
works in fascinating ways. For all intents and purposes, the onset of web 2.0 has
led to a kind of international Cultural Revolution. Preceded by an integrated into
western globalization, social media has created a bridge between all cultures, and
allowed people to communicate in ways previously unimaginable. The
fundamental principle of social media is the sharing of information. Anything no
matter how small or how large, can now be condensed into a picture or a video,
or a tweet, and spread like wildfire, having an impact on the lives of thousands. It
is easy to dismiss social media as loads of obnoxious people giving you live
updates of their breakfast, but whilst YouTube may have far too many thousands
of hours of terrible vlog footage, there are some that are using the power of
social media in amazing new ways.