Marketing Management

Answer 1
New products are those products which will be introduced in the market for the first time.
These products are either newly made product or existing product which has been modified.
A firm can also acquire the product by buying a whole company, a patent, or a license to
produce someone else’s product. Launching a new product is a very crucial task because the
future buyers judge the product from its marketing initially and so everyone in the firm and
partner should be aware about the same. If the launch is not up to the mark, it will leave a bad
impression on the buyers, and they may be reluctant to buy the product leading to loss for the
company.

Steps of Launching a New Product

There are various steps that need to be catered to for ‘New Product Launch’. The steps for
launching of a new product is broadly divided into three parts – Pre-Launch, During the
Launch and Post Launch which are further divided into sub parts. They are as follows:
Pre-Launch During Launch Post Launch

➢ Having a ‘Unique ➢ Increase marketing ➢ Take frequent feedback

Selling Proposition’. through media. from customers.
➢ Deciding on a schedule ➢ Have clear
for New Product communication.
Launch.
➢ Allocating duties within
organization.
➢ Inculcating creativity
and out of the box idea.
➢ Active on social media.

➢ Providing excellent
customer service.
➢ Having backup support.

Pre-Launch of ‘New Product’: -

1. Having a ‘Unique Selling Proposition’: It is essential to have a unique selling proposition
as it defines what is so unique about your product and why should buyers purchase your
product. It also helps in narrowing down the customers as it will be clear what all does the
product do and what is the unique feature about it. For example, the eye-catching detail about
‘Tesla’ is its ‘Autopilot’ which is its one of eye-catching and unique feature.
2. Deciding on a schedule for New Product Launch: Fixing a date when the product will be
launched increases the excitement of the customers and they look forward to that date when
the product will be launched. A detailed plan should be issued for public which specify in
detail on what all days each task will commence. For example, launching car on which day,
test drive of the car will be available from which day and bookings can start from which day.
3. Allocating duties within organization: As the work gets allotted, launching of the product
becomes easy and it becomes easy to track if there is any error. Having people accountable
for their work also results in timely submission of the work and people in organization also
brainstorm ideas which results in creativity and out of the box idea.
4. Inculcating creativity and out of the box idea: During marketing it is essential to use
creativity and present out of the box idea which will have a long-lasting impact on the buyers
and having a catchy slogan or advertisement stays in the mind of the buyers which will help
in increasing future buyers. For example, giving inside view of the car in newspaper or by
designing a game in which people can virtually drive tesla.
5. Active on social media: By being active on social media, you will get a glimpse of what
the buyers needs and wants are and it will help you to design your product accordingly.
Social media is also a very good platform for new products because it helps the organization
to cover large majority of buyers and take them along in the journey of product development.
6. Providing excellent customer service: When a new product it launched, buyers have many
questions and by having excellent customer service you not only satisfy their thrust for
information you also leave a positive impact on the customers. A firm can also inculcate
FAQs in their website which will simplify the work of the customers in searching for the
answers and saving their time in calling customer support services repeatedly.
7. Having backup support: A lot of work has to be done while launching a new product and
by having a backup support team who has all the blueprint and is aware of the duties and
responsibilities of all the people within the organization makes it easier to support in case of a
glitch. Backup support team insures everything happens smoothly and successfully.

During the launch of ‘New Product’: -

1. Increase marketing through media: As soon as the product is launched, organization should
double its marketing strategy. It will help in spreading the word about the availability of your
product to all the buyers. Spreading of the information can also be done through blogs which
will have a positive impact as people now a days engage themselves more in blogs and it will
result in tapping more customers.
2. Have clear communication: All the members of the organization must be completely aware
about the product and changes (if any). It will indirectly give good feedback if anyone is
asked about the product. By having clear communication time won’t be wasted on going back
and forth and there will be limited errors as everyone in the organization will be fully aware
of everything.

Post Launch of ‘New Product’: -

1. Take frequent feedback from customers: Taking feedback from customers on regular bases
helps the organization in knowing what improvements and required and what practices they
should continue be doing. It also gives good feedback about the companies after sale service
and buyers will be willing to re-purchase the product or spread positivity about the product to
others.
Launching a new product is not only exciting but it is challenging too. One should always
keep in mind that pre-launch, during the launch and post launch are essential for any product
and most importantly it should be number one priority of the firm to give a memorable
experience to its the customers so that they re-purchase and give positive feedback of the
product to others.

Answer 2
Promotion mix also know as marketing communication mix consist of various ways through
which firm can blend the promotion tools to spread word about availability of a product to its
customers and build relationship with them. There are various tools that can be used by a firm
such as advertising, public relations, personal selling, sales promotion, and direct marketing.
These promotion tools are used to communicate with the customers about the availability of
the product like Advertisement of a product can be done through print, online, broadcast.
Public Relations have sponsorship and events. Personal Selling is done through trade shows
and sale presentation. Sales Promotion includes discounts and coupons. Direct and Digital
Marketing is done through direct mails, catalogues, and social marketing. These are some
ways through which promotions can be done and it is always better to have a mix of these
promotions because it enhances the effectiveness of the product promotion, improve their
communication with customers, and most importantly stand out from their competitors.

Suitable Promotion Mix for New Launch

1. Advertisement: A company hire people from outside the firm to promote their product
and help it reach out to as many customers as possible in exchange of money.
Advertisement helps the firm in capturing attention of the customer and builds their
curiosity to try the product offered by the company at least once. And by having eye
catchy graphics and unforgettable tagline can influence customers to try the product.
Advertisement includes broadcast, prints, online, outdoor, and various other forms.
Four keys points that must be kept in mind while developing advertisement program
which are as follows:
 Objectives Setting

➢ Communication
Objectives
➢ Sales Objectives

Budget Decisions

➢ Affordable Approach
➢ Percent of Sales
➢ Competitive Parity
➢ Objectives and Task

Message Decisions Media Decisions

➢ Message Strategy ➢ Impact and Engagement

➢ Message Execution ➢ Major Media Types
➢ Specific Media Vehicles
➢ Media Timing

Advertisement Evaluation

➢ Communication Impact
➢ Sales and Profit Impact
➢ Return on Advertising

2. Public Relations: The firm tries to build a positive relationship with the public which
will act a positive and favourable publicity for the firm and will help the firm to get
more buyers. The company will also engage itself in sponsorship and events which
will spread a word among public.

Public relation also includes the following functions:

 • Press Relation or Press Agency: Through press firm will try to leak out
newsworthy information which will help the firm to capture attention of the
media towards a person or product and services provided by the firm.
• Product and brand publicity: Using the podium to publicize their product or
service for people to know about its availability in the market.
• Public Affairs: Building relationships and maintaining them with national or
local community which will be useful for the firm to sell their product or
services.
• Lobbying: Building relationship and maintaining them with legislator and
government officials which will be useful for the firm to influence legislation
and regulation.
• Investor Relation: Maintaining a positive relation with shareholders and others
in the financial community to have a positive support for the product and
services.
• Development: To gain financial and volunteer support, firms work with
donors or members of non-profit organizations.

These are the following functions that are performed by the firm to have a
positive public relation and it will result in more selling of their product and
services in the market.

3. Personal Selling: It is one of the oldest forms of selling where one to one conversation
takes place between the salesperson and a potential buyer. Personal selling is
beneficial for the company as the salesperson can modify the promotion of the
product according to the need and want of the customer. Having said that, we can not
deny that it is one of the most expensive method as well because a company has to
pay for one person’s time. Personal selling involves having direct conversation with
the customer, it is not always face to face but also by phone, via email or social
media, through video or online conference, or by other means. Salesperson can mould
the conversation in such a way by which customer learn more about the issues and
problems they are facing and see the product or service to be a perfect fit to resolve
their problem.

Personal Selling can be done by the companies in two ways:

Personal Selling

• Company selling their • Company heiring

product or services manufacturing
through online mode representatives, sales
without heiring any agent, or broker.
sales agent.
 However, most of the companies prefer to hire sales representatives to sell their
products or services.
4. Sales Promotion: It act as a shot term incentive to encourage the customers to buy the
product or service offered by the company. Sales promotion tool are used by the many
organizations, manufacturers, retailers, distributors, and non-profit institutions. The
main objectives of the company are – final buyers through ‘Customer Promotions’ in
order to boost customer-brand engagement; retailers and wholesalers through ‘Trade
Promotions’ objectives are to include getting retailers to carry new items and more
inventor or to promote company’s products so that they get more shelf space; business
customers through ‘Business Promotions’ in order to generate stimulus purchase,
reward customers; and member of the sales force through ‘Sales force Promotions’
main objectives include getting more sales force support for current and new product.

5. Direct and Digital Marketing: It is a type of marketing where a product is directly sold
to the customer. Company communicates with potential customers and offer various
offerings through telephonic conversation, snail mail, email, catalogues, or brochures.
It is beneficial for the company because it is cost effective way of reaching to many
potential customers.

Promotion mix for Parle Agro flavoured drink ‘Smoodh’ will be having a mix of
Advertisement, Personal Selling and Sales Promotion because it is a well-established
compony and have a great goodwill among its customers. Promoting their new drink through
advertisement will help the company to reach to maximum customers and will help in
informing them about the availability of the drink. Personal Selling will be advantageous as
well because the salesperson can help the people to understand its benefits and to try it on.
And last but not the least Sales Promotion will play a vital role in the promotion of the drink
by giving it free to the customers along with purchase of something from Parle Agro will
motivate customers to try on a new drink.

Answer 3a.
The company provides choice to customers to decide on design of car will not only help the
firm to boost its sale but also have a long-lasting impact on customers. By using
differentiated targeting strategy, they have individually targeted each customer and help them
to tap their inner creativity. Differentiated targeting strategy helps them to improve their
brand recognition, reach a wider customer, meet their needs, and increase revenue.
Differentiated Targeting Strategy
In differentiated targeting strategy or multi segmented targeting strategy firm decided to
target several market segment and design separate offer for each. As we can see that the
company is offering personalized car to its customer which the customer deigns according to
their preference. So, we can say that the company has selected “Differentiated targeting
strategy” for increasing the same of their product.
By adopting differentiated targeting strategy, the firm have following benefits –

Fulfil a range of Increase total

customer needs sales revenue

Advantages of
Differentiated
Targeting
Strategy

Enhance
Enable business
competitive
to adapt
advantage

• Fulfil a range of customer needs – By using differentiated targeting strategy, firm can
fulfil large variety needs of all the customers rather than appealing to only one need.
The ability to fulfil diverse needs makes differentiated targeting strategy effective.

• Increase total sales revenue – Since through differentiated targeting strategy is used
by a firm, total sales revenue is increased as vast number of people are attracted
towards the uniqueness and customization of the product.

• Enable business to adapt - Differentiated marketing can help businesses adapt to

changes within their industries, to product demands and to the overall markets they
appeal to. With more than one segment, product type and level of service, businesses
can ensure future revenue even if one market becomes no longer viable.
 • Enhance competitive advantage – Differentiated marketing provides businesses with an
advantage over competitors. This can result in businesses beating out their competition
because they are able to provide a diverse range of products or services that fulfil a range of
needs.

We can see from the meaning and from the case study that the targeting strategy adopted by
Kia cars is differentiated targeting strategy as the firm is customizing their cars according to
the needs and likings of individual customers.

Answer 3b.
Kia Motors used a unique way to improve their sales as they have inculcated 3D designing
according to customers preferences. They are using Psychographic segmentation as they are
concentrating on the lifestyle of the people by letting them decide the design and the features
of their car and customizing it according to their preference.
Psychographic Segmentation
Kia motors are using psychographic segment as they are designing the product according to
their clients taste and preference which is beneficial for not only the clients but also for the
company as they will know exactly what customers want and they can divide the customers
accordingly when they introduce their next product.
The Psychographic segmentation has various advantages which are as follows:
• Give clear picture of the customer - Psychographic segmentation is beneficial as they
give a clear picture about the taste, preferences, likes and dislikes of the customers
which can be taken into consideration while introducing a new product.
• Help company to have more targeted messaging – Through Psychographic
segmentation company can modify their message which will be more targeted and to
the point which can grab customers attention as message is the first thing a customer
gets when a new product is introduced in the market.
• Create opportunities for restocking and selling more products – By understanding the
taste and preferences of the customers, companies can restock those products which
customers buy the most.
Kia motors are using Psychographic segmentation for selling their customized cars as they
are keeping in mind customers taste and preferences which will help them increase their sales
and get earn higher profit.