MBM 632

MARKETING MANAGEMENT.

UNIT I

1. What is marketing? Define it using various perspectives.

Ans . Marketing is the activity, set of institutions, And processes for creating, communicating, Delivering,
and exchanging offerings that Have value for customers, clients, partners, And society at large.

A social and managerial process whereby individuals And groups obtain what they need and want through
Creating and exchanging products and value with others.

“Marketing is an organizational function and a set Of processes for creating, communicating and Delivering value to
customers and for managing Customer relationships in a way that it benefits the Organization and its stakeholders.”

Marketing is the promotion of business products or services to a target audience. It is, in short, an action taken to
bring attention to a business’ offerings; they can be physical goods for sale or services offered. Common examples of
marketing at work include television commercials, billboards on the side of the road, and magazine advertisements.

But not all businesses approach the need to market their goods and services the same way. In fact, there are a few
different approaches to how marketing can be successful for an organization.

Ex A Pizza Shop
Let's imagine that you want to open a pizza shop. You live in a suburban area with lots of families, so you know that
the potential market is good. You've got some savings with which to start your business, and soon, you are the proud
owner of a little shop in the center of your town. We'll call it Pizza Pizzazz.

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 2. Describe the evolution of marketing as a function. Explain with examples.
Ans

Evolution of Marketing Concept:

This marketing philosophy has undergone a thorough and gradual change since the great Industrial Revolution that
took place during the latter-half of the 18th and first-half of the 19th centuries. This gradual change can be traced under
four periods and captions namely, production orientation period, sales-orientation period, customer-orientation period
and social orientation period.

Following is the brief explanation of each philosophy and corresponding period:

1. Production Orientation Philosophy:

Till 1930s, there prevailed a strong feeling that whenever a firm has a good product, it results in automatic consumer
response and that needed little or no promotional efforts. This production-oriented marketing concept was built on
“Good wine needs no push.” That is, if the product is really good and the price is reasonable, there is no need for
special marketing efforts.

The assumptions of this concept are:

(i) Anything that can be produced can be sold,

(ii) The most important task of management is to keep the cost of production down.

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 (iii) A firm should produce only certain basic products.

This concept can be illustrated as under:

Production Orientation Philosophy

Under this concept, production is the starting point. The product acceptability occurs after the product is produced.

2. Sales Orientation Philosophy:

The failures of the production orientation philosophy of 1930s paved the way for change in the outlook that was
possible during 1940s. This reshaped philosophy was sales-orientation that holds good to a certain extent even today.

It states that mere making available the best product is not enough; it is futile unless the firm resorts to aggressive
salesmanship.

Effective sales-promotion, advertising and public- relations are of top importance. High pressure salesmanship and
heavy doses of advertising are a must to move the products of the firm.

The essence of sales orientation philosophy is “Goods are not bought but sold.” The maker of product must say that
his product is best and he fails if he keeps mum.

The assumptions of this philosophy are:

(i) Producing the best possible product.

(ii) Finding the buyer for the product,

(iii) The management’s main task is to convince the buyers through high pressure tactics, if
necessary.

It can be illustrated as under:

Sales Orientation Philosophy

The philosophy has been prevailing since 1940. It is more prevalent in selling all kinds of insurance policies,
consumer non-durables and consumer durable products, particularly the status-symbols.

3. Customer Orientation Philosophy:

This philosophy was brought into play during 1950s and points out that the fundamental task of business undertaking
is to study and understand the needs, wants, desires and values of potential consumers and produce the goods in the
light of these findings so that consumer specifications are met totally.

Here, the starting point is the customer rather than the product. The enterprise is to commence with the consumer and
end with the requisite product. It emphasizes the role of marketing research well before the product is made available
in the market place.

The assumptions are:

(i) The firm should produce only that product as desired by the consumer.
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 (ii) The management is to integrate all its activities in order to develop programmes to satisfy the consumer
wants.

(iii) The management is to be guided by ‘long-range profit goals’ rather than ‘quick sales.’ It can be
illustrated as under:

Customer Orientation Philosophy

This means a radical change in the philosophy.

It meant two basic changes namely:

(i) Move from production to market-orientation,

(ii) Gradual shift from age old “Caveat emptor” to “Caveat vendor”.

Since 1950, this philosophy is in vogue and will continue so long as consumer is the King of the market.

(iv) Social Orientation Philosophy:

There has been a further refinement in the marketing concept particularly during 1970s and 1980s. Accordingly, the
new concept goes beyond understanding the consumer needs and matching the products accordingly.

This philosophy cares for not only consumer satisfaction but for consumer welfare or social welfare. Such social
welfare speaks of pollution-free environment and quality of human life.

Thus, a firm manufacturing a pack of cigarettes for consumer must not only produce the best cigarettes but pollution-
free cigarettes; an automobile not only fuel efficient but less pollutant one.

In other words, the firm is to discharge its social responsibilities. Thus, social welfare becomes the added dimension.

The assumptions of social-orientation philosophy are:

(v) The firm is to produce only those products as are wanted by the consumers,

(i) The firm is to be guided by long-term profit goals rather than quick sales.

(ii) The firm should discharge its social responsibilities,

(iii) The management is to integrate the firm’s resources and activities to develop programme to meet these
individual consumer and social needs.

This concept can be illustrated as under:

Social Orientation Philosophy

This social oriented philosophy is the latest and is considered as an integrated concept. This philosophy, as it covers
earlier long-standing concepts, is bound to rule the marketing world for pretty long time.

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3. Describe the major trends and forces that are changing the marketing landscape in this age of
relationships and networking.
Ans Everyday & everytime ,marketplace faces dramatic changes. According to Richard love of HP," The
pace of change is so rapid that the ability to change has now become a competitive advantage".
Marketers should adapt themself with this dramatic changes.
There are five major trends & forces that are changing the marketing landscape & challenging marketing
strategy. These five developments are:-

1. The Changing Economic Environment:

In the present time ,customers are so much tight about their purse strings & changes their buying attitudes
& habits. Before making any purchasing decision,they rethink their spending priorities & cut back on their
buying. Thats why marketers are emphasizing to create value proposition for customers. Marketer are
mainly focusing on value for money ,practicality & durability in their product that offering in the
marketplace.
Marketers always try to adjusting to the new economy. Now they cut their costs & offers discounts; it can
be important marketing tacties. Doing this they face challenges but the most challenging task is to balance
the brand value proposition with the current time.

2. The Digital Age:

The rapid growth of technology has fundamentally changed the way we live.Its mean how we
communicate, how we share information, how we learn,shop & access entertainment.
From this ,we can easily understand the impact on the ways companies create value to their customers.
It is true that technology bring are a volutionary change in our life for better or worse.
To the modern technology, marketers can easily promote their product ,tailored product according
customer wants & tracking customer & add value for them.
The most useful technology is the Internet. Through this ,marketer can communicate , advertise, build
relationship with customers.
Now a days, online marketing is the fastest - growing form of marketing .

3. Rapid Globalization:

Marketers are always want to grow customer all over the world. Every large & small company faces global
competition. So companies select their managers who can work for globally not locally for using
opportunities & compete with competitors.

4+5 . Sustainable Marketing -( The call for more & social responsibility)

Companies have some responsibility to the society & society poeple. Company should maintained this &
this is called sustainable marketing practises.
Every year companies spend particular percentage of profit for the wellfare of the society. Companies
do that because they know that every action can affect customer relationship. Customers obviously want
environmental & social improvement.
Marketers also know that this activity will bring benefit in the future demand. Thats why they always ready
to accept their responsibilities to the world because they view sustainable marketing as an opportunity to
do well by doing well.

Pulling it all together,it can be said that in a single word that relationship; relationship is the major

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 development in marketing strategies. Marketers are not willing to leave any opportunities for building
relationship with their customers, their partners & the world around them.

The marketing landscape has continued to evolve with every technological advancement. This evolution offers
businesses more opportunities to reach their target audiences in new and impactful ways. As you work toward
your online MBA degree, it’s important to understand how the following four trends could change the way
your business interacts with consumers:

Marketing Automation
Research shows that nearly half of tasks done by paid professionals can be automated. Indeed, marketing
automation is the practice of utilizing software to automate these repetitive tasks. Among companies that
outgrew their competitors, 63% were using marketing automation to enhance their marketing strategies.

Artificial Intelligence
Marketers are better able to dynamically automate customer interactions using artificial intelligence
technologies. According to the 2017 Economist Intelligence Unit Report, nearly 80% of business executives
believe their work will be made easier with AI.

Experiential Marketing
Experiential campaigns engage customers through immersive, real-world events or interactions. Marketers
can implement a number of experiential strategies, including:

Using stars to boost attendance

Touring
Augmenting the experience with technology
Leveraging partner locations
Executive Branding
Executives need to brand themselves too, beyond overall company branding. Executive branding might
involve having a massive online presence, using motivational quotes, and highlighting charity efforts.

4. Explain the elements of good marketing practice.

Ans

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Ans The 6 Essential Elements of a Successful Marketing Campaign
Your monthly newsletter is humming along, but you want to run a special campaign to feature a new
service. What are the necessary pieces that you need to assemble to build an effective marketing campaign?

1. The Target
Probably the most overlooked (but most important) step in the process of planning a marketing campaign is
defining your audience. Who do you want to appeal to? The more narrowly you can define the person --
remember you are talking to a person, not a company -- who will benefit from your service, the better
results you will get. From industry to role to age, define who you want to reach and why they need your
services.

2. The List
Once you have the target definition, you need to identify a set of contacts that fit that profile. First, look
inside the organization for contact lists. You may have more than you realize. Salespeople's contact lists,
opt-in lists gathered from your Web site, other departments and existing customers are all sources to turn to
first. People that you already have a relationship with will be more likely to read your message than a
stranger.

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The number of sources and variance of quality for contact lists are as complex as Microsoft licensing. Don't
let it overwhelm you. Focus on your target definition. Professional organizations or publications that serve
the market can be a good source of rental or purchase lists. The Microsoft Ready-to-Go Services site
includes several sources to help you find the right lists.

Keep in mind that you want to build a relationship with these contacts. If you execute your campaign as a
onetime event rather than to build long-term relationships, you are going to be disappointed. To that end,
ownership of the list is far better than rental if you have the option.

3. The Value Proposition

To get your message right, think about the target audience you have identified and stand in their shoes.
What are the problems that they face and how can you help? Your value proposition is just that: What value
can you deliver to help them improve their business or solve their problem? Tell them, clearly and without
jargon, how you can do that. Make it real to your prospects by giving them actual examples of how you
have helped organizations similar to theirs.

4. The Offer (Call to Action)

Don't leave the conversation without offering more to those who are interested. A call to action helps you
identify the prospects who need more attention. Not everyone on your list is going to buy; it's a very small
percentage that will read your message and a smaller percentage that will have any interest. Give them a
reason to ask for more information. Case studies, whitepapers, videos, webinars and any other educational
content that you can offer are all great calls to action. Asking them to call you for more information is not.

5. The Delivery Method

How are you going to deliver the message to your target audience? There is no right or wrong here, and
using more than one method is always better (commonly referred to as multi-touch marketing). Different
people respond to different types of contact. Include e-mail, snail-mail, Web advertising, social avenues like
LinkedIn or professional organizations, and even traditional advertising in your list of options.

6. The Follow-Up
Your campaign is only as good as your follow-up. Just like you, your prospects are busy and get hundreds
of marketing messages each day. You need to continue the dialogue with them until they opt out or buy.

Most partners don't have the resources to test messages, track and report on the results of each campaign.
Yes, you should test and analyze to maximize results. There are probably a lot of things that you should be
doing. It is far more important to keep marketing going than it is to make it perfect.

That said, pay attention to the response that you get in terms of the vehicles and the message. Ask your new
customers how they heard about you. Track as much as you can, but don't stop because you aren't getting
the results you expected. If you have a good message targeted to the right prospects and keep the dialogue
going, you will connect with them.

Marketing campaign planning isn't just for big marketing departments. Work through these six steps and
you'll have the pieces in place for an effective campaign. Most importantly, keep it going. There is no
magic marketing technique that will get you tons of new clients in three months, but persistence will pay
off.

5 What is strategic marketing process? Explain its various components with reference to an example.
The marketing process of any company can make or break its brand positioning as well as customer loyalty. It
is the strategic process which provides guidelines for the overall marketing process and assures that the right

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audiences are being targeted along with monitoring the objectives and goals of the business. The process
provides an actionable way for measuring the status as well as the success of initiatives.

Strategic marketing can be explained as a process of planning to develop and to implement operations so as to attain a
competitive edge in a particular niche. This process is very important for outlining and simplifying the goals and
objectives of a company and how they can be achieved. Businesses which want to secure a particular share in the
market should assure that their mission is clearly identified, should survey the situation of the industry, define
specific objectives and develop, implement as well as evaluate the plan which guarantees that customers are provided
with products that they need and when they need it.

Basically, the marketing process should include:

Mission, goals, and objectives of the company.

Strengths, weaknesses, opportunities, and threats that are affecting brand marketing.
Distributing channels and required resources that will be used to extend support to marketing initiatives.
Identifying the target audience as well as the specific need of the group.
Measurable and actionable metrics that presents a clear picture of where efforts are standing in the process and how
successful customer interactions and outreach has become.
3 Phases of Strategic Marketing Process Planning phase
Strategic marketing planning phase is very important as it assesses internal strengths and weaknesses, technological
shift, external competition, industry culture shift along with the current position of the company. This planning phase
involves four key components which include:

SWOT Analysis: Swot analysis is a strategic analysis tool for identifying the strengths, weaknesses, opportunities,
and threats of a business and determining the company’s position in the market. In order to maximize strength and
minimize weaknesses, business should evaluate its competitors’ strategy in the market, asses the company’s strategy,
research the current and prospective customers along with identifying the industry. Results obtained from this
analysis should be the basis of devising a marketing plan which should be attainable and measurable.

Besides swot analysis, there are other situational analysis tools like 5cs and PESTEL Analysis. 5Cs analysis is a
marketing tool that analyze the internal and external environment where company operates. There are five key areas
that are used in marketing decisions for a company i.e. company, competitors, customers, collaborators and climate.

Pestle Analysis also known as PEST Analysis is a marketing concept and tool to analyze external environment of a
company where they are operating or planning to launch a product or service. PESTEL stands for Political,
Economic, Social, Technological, Environmental and Legal factors that give a complete overview of the environment
from various angles.

Marketing Program: When the needs of the customers have been identified and the products which will satisfy
those needs have been determined, the next step is to develop a marketing mix program. This is the ‘how’ aspect of
the planning phases and focuses on the 4Ps and the budget required for every element in the mix.

Setting product and marketing goals: Goals should be set to meet customer demand. This can be done by identifying
the unique selling point of the business along with the particular characteristics or traits of the products which
distinguish it from others.

Goal setting and market-product focus: After determining the position of the company and what it wants to achieve,
the next step is to determine where the resources will be allocated and how plans will be transformed into actions.

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 This involves utilizing different strategies which include pricing strategy, place or distribution strategy, product
strategy, and promotion strategy.

Implementation Phase
This is basically the course of action in the strategic marketing process. It is important to determine whether the
company is able to attain what was planned in the planning phase. When the plan is competently structured, it can be
put into effect through a sales forecast and budget by using the following four components:

Obtaining resources: Cash for developing and marketing new products.

Developing of planning schedules: Time allocated to particular tasks to accomplish them.
Designing marketing organization: A marketing hierarchy should be placed to monitor plans to fruition.
Executing the marketing plan: This involves paying attention over details and focus upon the strategy defined in the
marketing plan.
Evaluation or Control Phase
This is the checking phase and ensures that the results obtained from the plan are in accordance with the set goals.
Any deviations in the plan should be observed and rectified immediately. Evaluating the effectiveness of a marketing
strategy includes focusing on:

Evaluation or Control Phase

This is the checking phase and ensures that the results obtained from the plan are in accordance with the set goals.
Any deviations in the plan should be observed and rectified immediately. Evaluating the effectiveness of a marketing
strategy includes focusing on:

Measurable as against vague: milestones define achieved goals

Strategy as against tactic: strategy explains goals and tactic explains actions that will achieve goals
Actionable as against contingent: should be attained through tactics rather than dependent upon external
uncontrollable forces.
Marketing strategy: supported by a business plan involving tactics for accomplishing goals.

6 What do you understand by the term “value proposition”? Pick a company whose product you’ve recently
purchased. Describe the company’s value proposition and marketing offer.

Ans A value proposition is the value you promise to deliver to your customers post
purchase. It’s ultimately what makes your product attractive to your ideal customer. A
compelling value proposition meets three criteria:

1. It’s specific. What are the specific benefits your target customer will receive?
2. It’s pain-focused. How will your product fix the customer’s problem or improve their life?
3. It’s exclusive. How is it both desirable and exclusive? How well does it highlight your
competitive advantage and set you apart from competitors?
Don’t confuse brand slogans, catchphrases, or even a positioning statement with a value
proposition as they're different things.

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Here’s a visualization that will help you avoid that trap.

Your value proposition should focus on the superpowers that potential customers get, not the
product. Rarely is your value proposition the product itself or its features. Instead, it’s the way
the brand or product fixes a meaningful pain point, improves the lives of your target audience,

and the way it makes them feel (like they have superpowers, for example).

A value proposition should be front and center when a visitor arrives on your site. Although it’s
often found above the fold on the homepage, you should be aware of other common entrance
points (e.g., a landing page, category pages, blog posts, and product pages).

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Even if you manage to create an effective value proposition, it won’t drive sales if it’s tucked
away in a dusty corner of your website or absent on high purchase intent pages.

Examples of strong value propositions

The best way to get a feel for how value propositions work and how to get them right is to look
at some strong examples.

1. BustedTees

BustedTees uses “BustedTees brings you the highest quality graphic tees on the net” as its
homepage value proposition. BustedTees value proposition example

In this case, it’s betting on the quality of its production materials and designs. The value
proposition is small but centered at the top of the page.The site appears to only display the
value proposition to first-time visitors, who are more likely to be unfamiliar.

Note how the value proposition is followed quickly by a relevant call to action. “Hey, we have
high quality graphic tees. Want to shop our bestselling graphic tees?” If your value proposition
does its job, it motivates and inspires action, so make it easy for visitors to take that action.

2. Novo Watch

Novo Watch promises to deliver “Timepieces handmade in Alberta from repurposed pieces of
history.”

NOVO Watch

Instantly, you know the difference between a watch from Novo Watch and one of its
competitors. The value is unique and undeniably different.When you arrive on the site, the
value proposition fills the entire page, but you’ll also find the value proposition reiterated on
the product pages.

NOVO Watch product description

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The continuity from the homepage to the product page is immediately evident. Phrases like
“manually wound timepiece” and “132 year old train track” reinforce the value proposition,
creating a clear message match.

7 What is marketing research? Explain its various steps with help of an example.
Overview of the Marketing Research Process:
Step 1: Problem Definition
Step 2: Development of an Approach to the Problem
Step 3: Research Design Formulation
Step 4: Field Work or Data Collection
Step 5: Data Preparation and Analysis
Step 6: Report Preparation and Presentation

Step 1: Problem Definition

Define the problem and research objectives. The first step in any marketing research study is to define the problem,
while taking into account the purpose of the study, the relevant background information, what information is needed,
and how it will be used in decision making. This stage involves discussion with the decision makers, interviews with
industry experts, analysis of secondary data, and, perhaps, some qualitative research, such as focus groups.

Step 2: Development of an Approach to the Problem

Step two includes formulating an objective or theoretical framework, analytical models, research questions,
hypotheses, and identifying characteristics or factors that can influence the research design. This process is guided by
discussions with management and industry experts, case studies and simulations, analysis of secondary data,
qualitative research, and pragmatic considerations.

A group of businessmen work on a series of plans that are displayed on an office wall.
Research Planning: Planning involves creating and maintaining a plan.

Step 3: Research Design Formulation

A research design is a framework or blueprint for conducting the marketing research project. It details the procedures
necessary for obtaining the required information, and its purpose is to design a study that will test the hypotheses of
interest, determine possible answers to the research questions, and provide the information needed for decision
making. Decisions are also made regarding what data should be obtained from the respondents (e,g,, by conducting a
survey or an experiment). A questionnaire and sampling plan also are designed in order to select the most appropriate
respondents for the study.

Step 4: Field Work or Data Collection

Field work, or data collection, involves a field force or staff that operates either in the field, as in the case of personal
interviewing (focus group, in-home, mall intercept, or computer-assisted personal interviewing), from an office by
telephone (telephone or computer-assisted telephone interviewing/CATI), or through mail (traditional mail and mail
panel surveys with pre-recruited households). Proper selection, training, supervision, and evaluation of the field force
helps minimize data-collection errors. In marketing research, an example of data collection is when a consumer goods
company hires a market research company to conduct in-home ethnographies and in-store shop-alongs in an effort to
collect primary research data.

Step 5: Data Preparation and Analysis

Analysis of data is a process of inspecting, cleaning, transforming, and modeling data with the goal of highlighting
useful information, suggesting conclusions, and supporting decision making. Data analysis has multiple facets and
approaches, encompassing diverse techniques under a variety of names in different business, science, and social
science domains. Data mining is a particular data analysis technique that focuses on modeling and knowledge

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discovery for predictive rather than purely descriptive purposes. Marketers use databases to extract applicable
information that identifies customer patterns, characteristics and behaviors.

Step 6: Report Preparation & Presentation

During the Report Preparation & Presentation step, the entire project should be documented in a written report that
addresses the specific research questions identified; describes the approach, the research design, data collection, and
data analysis procedures adopted; and presents the results and the major findings. This permanent document is also
helpful because it can be easily referenced by others who may not have been part of the research.

The findings should be presented in a comprehensible format so that they can be readily used in the decision making
process. In addition, an oral presentation should be made to management using tables, figures, and graphs to enhance
clarity and impact.

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Ans

8 "The task of any business is to deliver value to the market at profit". Discuss with the help of the value delivery
sequence.
Ans
Value Creation And Delivery Sequence Marketing Essay

Share this:
The first phase; is Choosing the value, this phase represent the “Homework” marketing must do before any
product exists. The marketing staffs have to segment the market, select the appropriate market target and
develop the offering’s value positioning. The use of the formula “Segmentation Targeting, Positioning
(STP)” is the essence of strategic marketing. After choosing the value the second phase is providing the
value, where marketing must determine specific product features, prices and distribution. And for the third
phase is communicating the value by utilizing the sale force, advertising, sales promotion, and other
communication tools to announce and promote the product.

Figure 1.0
Value creation and Delivery Sequence
Tactical Marketing
Strategic Marketing
Some additional Marketing Implications that will help Mr. Barry Champion on developing his newly cinema
business. As follows:-

He should know his own business (what does he do, how do u produce it, how do u sell it, who do u sell it to,
where, at what price).

To know what people needs, what people thinks they need, and to know how to communicate with your own
target.

Marketing is about matching people needs, producer needs in a specific context of competition taking into
account the short and long term as well.

Making a search on an effective way to influence offline behavior

Remind audience of when and where to tune in

Building mind share in competitive entertainment landscape

Increasing monetization opportunities

ADVICE:
I would like to advice Mr. Barry to understand the Marketing Environment and its implications, as it refers as
the actors and forces outside marketing that affect marketing management’s ability to build and maintain
successful relationships with target customers. As for implications he should be aware of the impacts of
developing a new business.

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TASK 2
It is important for Mr. Barry Champion to understand the meaning of Decision Making Unit (DMU) of his
existing and future customers and obtain some of the information/intelligence to use it effectively for his
business.

The actual selling process breaks down into two parts one is the decision making unit (DMU) and two is the
decision making process (DMP).

The importance of Decision Making Unit for potential customers:

It consists of all of the people who will play a role in the decision to purchase a product. According to the
marketing mix program must understand the needs of each of these individuals and find a way on how to
communicate the marketing message to each of them. These people are identified as:

Initiators — people who request that something be purchased. They may be users or others in the
organization.

User — people who uses the product and get benefit from the product.

Influencer — people who helps the decider to decide on the product they want, it can be an analyst or an
evaluation group etc.

Decider — people or a group who usually decides on a product they want, it can be a manager etc.

Approver — people who authorize the proposed actions of deciders and buyers.

Buyer — people who issue the check for instance the individual consumer or the purchasing agent.

Gatekeeper — people who have the power to prevent sellers or information for reaching members of the
buying centre. E.g. receptionists, purchasing agent etc.

The meaning of Decision Making Process for potential customers:

Decision making unit is an interaction of making a purchasing decision where Decision making process is a
description of this interaction. By understanding this process a salesperson will be able to understand who,
how, and when to work on getting the customer order.

Problem recognition; first the target consumers must become aware that they have a need that is related to the
service or product being offered. They also have to be aware of the companies that are offering it, and the
product availability. If they don’t have the awareness, then they are not going to make a decision in your
favour.

Information search; Once they have decided to buy, they have to search for information. May be deciding to
buy a carpet is one decision; deciding to buy a home theatre is another decision. The search for information
already obtained in this case is much more complex. Particularly if you are a first time buyer of a home
theatre, your knowledge of home theatre is going to be limited.

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You are going to have to learn some of the terminology, so you are probably going to have a pretty intensive
search for information. You are not going to have an intensive search on information for choosing
alternative carpet. You are well down the learning curve because you have been buying it for a long time and
you know all about it.

Evaluation of alternatives; They have to decide that they are going to spend some money and buy the product
or service but their attribute interest to buyers vary by product example tires; safety, tread life, price and ride
quality.

Purchase decision; with the carpet selection, the product is right in front of you. It is a quick decision; you
are probably just going to grab one. Or maybe there is a brand name in your head because of intensive
advertising. The home theatre is a different story; you are going to want to shop around, you are going to
want to look at the performance and specifications of the home theatre. How much can you spend? That is
going to influence your decision.

Post-purchase evaluation; the post-purchase evaluation is an often forgotten aspect in the consumer Decision
Making Process (DMP), but many companies are paying a lot of attention to this right now.

When you purchase a motorcycle, most automobile dealerships survey you to find out how you felt about
buying that motorcycle from their dealership. What was the motorcycle like when you picked it up? Were all
of the things that you expected done? Was this explained to you?

This is all a part of the post-purchasing evaluation were not only do we need to understand who is involved in
the decision to make the purchase, but we have to understand where they are in the process, because
depending on where they are, we have to provide them different kinds of information. Apparently, it is
important, though, to note that as a product matures and consumers become more familiar with it, their
information needs change.

Also he should understand some of the advantages and disadvantages of a group decision making:

Mr. Barry should be able to gather and obtain information/intelligence and effectively use of it by;-

Marketing managers rely on internal reports on orders, prices, costs, inventory levels, receivables, payable
and so on. By analyzing this information they will be able to spot important opportunities and problems as
follows:-

A company has to train and motivate the sale force to mark and report new development; sales
representatives are the ones to pick up information missed by other means, but sometimes they fail to pass on
that information and they should know which type of information to send to which managers. The company
has to sell its sales force on their importance as intelligence gathered.

A company has to motivate distributors, retailers and other intermediaries to pass along important
intelligence; must hire specialists to gather marketing intelligence. The typical questions on this for the
shoppers are: did the sale associate act as if he wanted your business? Or how long before sales associate
greeted you? And was the sales associate knowledgeable about products in stock?

A company can set up a customer advisory panel; members sometimes include representative customers or
the company’s largest customers or its most outspoken customers. It’s good to have advisory panels made up
of alumni and recruiters who provide valuable feedback on the curriculum.
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 Sales information system; marketing managers should need timely and accurate reports on current sales by
knowing the sales of the service each evening.

TASK 3
By using a competitor cinema of I have been able to produce and develop a competitor analysis and also
encourage on how to use marketing models in assisting Mr. Barry and his employees.

Competitor analysis in marketing and strategic management is an assessment of the strengths and weaknesses
of current and potential competitors. It provides both an offensive and defensive strategic context by identify
opportunities and threats. Competitor profiling combines all of the relevant sources of competitor analysis
into one framework in the support of efficient and effective strategy implementation, formulation, monitoring
and adjustment. Let’s see the advantages and disadvantages of Competitor analysis
9 Describe the Boston Consulting Group’s approach to portfolio analysis. Briefly discuss why
management may find it difficult to dispose of a “question mark”. Ans

Ans BCG stands for Boston Consulting Group; also called ‘Growth/Share Matrix/ BCG Matrix’; developed
by Boston Consulting Group, a world-renowned management consulting firm located in the USA. It is a
useful tool for analyzing a diversified company’s business portfolio.

In the BCG matrix, SBU(Strategic Business Unit) is a unit of the company that has a separate
mission and objectives that can be planned independently from other company businesses.
Diversified companies having several SBUs (Strategic Business Units) use the BCG Matrix.
These SBUs form the ‘business portfolio’ of the company. Companies use the BCG matrix is as
a portfolio planning tool.

This matrix has four steps

• Dividing the business-organization. into several (at least two) SBUs

• Determining the prospects of each SBU of the organization
• Comparing each SBU against other SBUs with the help of a matrix (two-dimensional)
• Setting strategic objectives for each SBU.

Question Marks: Low-Share Business Units in

High-Growth Markets

Question marks are low-share business units in high-growth markets. They require a lot of cash
to hold their share, let alone increase it. Management has to think hard about which question
marks it should try to build into stars and which should be phased out. An SBU is considered as
a cash cow when it has low market growth and high market share.

It is a highly profitable firm and generates a substantial amount of cash. Since this Strategic
Business Unit (SBU) has a lack of opportunity for future expansion, more cash should not be
injected. Question marks lie in the high business growth rate segment with a weak competitive
position. This means that the organization has to develop some competencies to make the best
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use of high growth rates. To sustain these business resources, the organization has to be
committed to developing them in the select areas.
Consider Porter’s value chain and the holistic marketing orientation model. How would you structure a
marketing plan to incorporate some of their concepts?
Ans Porter’s model focuses on achieving the competitive advantage over its competitors by the amount of
value it creates relative to its competitors. Considering Porter’s vale chain and holistic marketing orientation
model, these models have great implications for marketing planning. Implications of Porter‘s value chain
model and structuring a marketing plan: While going for the marketing plan, I will strive for providing better
services in comparison to my competitors, which will help in gaining competitive edge over competitors. I
will be looking on the consumer service oriented activities like: 1) Outbound logistics: It refers to the stage
where the finished products are developed. So from here the necessary activities are required to make the
product available to the consumer and it is done by warehousing, order fulfillment, activities involving
transportation, and distribution management. 2) Marketing and sales: This stage has its own significance, it
includes activities like advertising, channel selection, promotion of the product, product pricing etc. All these
activities will be performed in order to make product available to the target customer groups. Implications of
Holistic marketing orientation model on structuring a marketing plan: Holistic marketing also plays an
important role and has useful implications for marketing planning. Basically in…
.

11 Give three examples of how technology has benefited marketers. Also, give several examples of how firms
have been hurt because they did not keep up with technological change.
• Ans Benefits:-Real time communication. (email, phone calls, text messages, and skype).-
• Social media (sharing information about your company).
• -Selling products over the internet. (Amazon, eBay).

• How firms have been hurt:-

• Takes more time to communicate with potential customers.

• -Not u sing social media reduces the amount of People that know about your business
• . Krista Barney. Mktg. Monday 6pm-Not selling over the internet reduce the amount of potential
customers.
Or

Give three examples of how technology has benefited marketers.-It made advertising faster and available for more
people through the Internet and Social Media sites. -The Internet made the products more accessible for the
customers. Nowadays, they are able to buy products through the Internet and the organizations are ableto provide
some services online. -Technology made more competition among the organizations. Companies are driven by profit,
so they are willing to invest in new technology breakthroughs to be more competitive.

5.Give three examples of how firms have been hurt because they did not keep up with the changes in technology.-
If companies do not keep up with the new technology changes they can lose customers and their revenues. A great
example of that is Barns & Nobel’s. They did not recognize the quick spread of e-book users. They kept focusing on
paperback, therefore; they lost many of their customers and they had to close some of their stores.-The other good
example is Toys “R” Us which just has got recently bankrupt. The organization recognized too late that nowadays, it
is not enough to only sellthe products in a store. They have launched their online ordering option, but they just could

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not keep up with the rapidly developing Amazon.-General Motors bankruptcy was due to a failure to innovate and it
led the competitors to dominate the market.

12 Customer satisfaction survey of different car brands showed that the customers were excited about
the new features of one of the well-known luxury brands. It also showed that new model of the brand
used smart technologies which exceeded customer expectations. However, customers were not highly
satisfied with the location of service centers and customer response. In view of this survey finding, what
should car manufacturer do? What should be its new or augmented marketing plan?

Ans ye nhi pta

13 Write short notes on any three:
a. Digital Marketing : Digital marketing is the use of the Internet, mobile devices, social media, search
engines, and other channels to reach consumers. Some marketing experts consider digital marketing to be an
entirely new endeavor that requires a new way of approaching customers and new ways of understanding how
customers behave compared to traditional marketing. KEY TAKEAWAYS Digital marketing is the use of
the Internet to reach consumers. Digital marketing is a broad field, including attracting customers via email,
content marketing, search platforms, social media, and more. Understanding Digital Marketing Digital
marketing targets a specific segment of the customer base and is interactive. Digital marketing is on the rise
and includes search result ads, email ads, and promoted tweets – anything that incorporates marketing with
customer feedback or a two-way interaction between the company and customer. Internet marketing differs
from digital marketing. Internet marketing is advertising that is solely on the Internet, whereas digital
marketing can take place through mobile devices, on a subway platform, in a video game, or via a smartphone
app. In the parlance of digital marketing, advertisers are commonly referred to as sources, while members of
the targeted ads are commonly called receivers. Sources frequently target highly specific, well-defined
receivers. For example, after extending the late-night hours of many of its locations, McDonald's needed to
get the word out. It targeted shift workers and travelers with digital ads because the company knew that these
people made up a large segment of its late-night business. McDonald's encouraged them to download a new
Restaurant Finder app, targeting them with ads placed at ATMs and gas stations, as well as on websites that it
knew its customers frequented at night.

b. Needs and Demand : Needs - Needs are the basic requirements of a human being, like food, cloth,
shelter etc. humans cannot survive lace of those requirements. education and health care are the extend part of
needs in this modern world. according to marketing language, human needs are state of felt deprivation. It is
the basic underlying of marketing. Different people have different needs some of them are as follows
physical needs- Food, cloth, house, safety etc. personal needs- self expression, discuss feeling etc. Social
needs- love, affection etc. Ego needs: status, recognition and self-esteem

Demands- Demands are wants for specific products. They are backed by willingness and ability to buying
power. Wants backed by money and willingness to spend the money become demand.

For example, You need BMW car and you have the buying power, is your demand.

c. Marketing Myopia : KyLeads Logo Growth | March 20, 2019 Marketing Myopia: Definition,
Examples, and How to Move Beyond it DANIEL NDUKWU Last updated November 11, 2019 I have a
confession. I suffer from a condition known as myopia. If anything is more than ten feet away from me I
have trouble seeing it. It’s also known as nearsightedness. It’s the same way some people look at marketing.
Their lead magnets are all about them Their copy doesn’t address the visitors problems The ads they use are
uninspired (to put it lightly). Many businesses have had to close their doors because they were, without their
knowledge, practicing marketing myopia. In this article, we’ll look at what marketing myopia is and the
impact it can have on your business. More importantly, I’ll share a way to move beyond marketing myopia
and build what your customers love to achieve lasting success. Table of Contents What is marketing
myopia? The phrase was coined in 1960 by Theodore C. Levitt. It’s a theory that states companies focus on
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 their needs and short term growth strategies. They neglect the needs and wants of their customers and fail as a
result. In short, businesses are busy selling what they have instead of improving it based on what their
customers tell them. The market votes with its wallet and will force anyone out of business who doesn’t meet
its needs. The perfect example of this is Blockbuster. People were leaving the video rental service behind
and instead of making the painful changes needed to survive, they buckled under the pressure.
d. Blog Mining : Blog mining is the process of searching and analyzing blogs in order to generate
additional insights that might otherwise not be found by examining a single blog. ... In contrast, blogs provide
a readily available and opinion-based content media that provides sentiment about a range of issues.
Blog mining, or the tracking and analyzing of what consumers are saying about your brand on the Web, is a
worthwhile undertaking and can generate insights unlike those found though traditional research methods. When used
in concert with those methods, blog mining can add a valuable component to a firm’s overall research program.

UNIT II

14. Explain major demographic and technological factors which could affect marketing of a product.

Ans.
Demographic factors.
There are a number of demographics that can affect a business. Demographics are various traits that can be used to
determine product preferences or buying behaviors of consumers. Most companies identify their key customers through
these various traits. They then target consumers with like characteristics in their advertisements and promotions.

Targeting consumers with similar demographic characteristics helps maximize a company's sales and profits.

Influence of Income on Business

Income is one demographic variable that can affect businesses. A company's products usually appeal to certain income
groups. For example, premium products such as high-end woman's clothing usually appeal to women with higher
incomes. Conversely, people with comparatively lower incomes are more sensitive to price and, therefore, may prefer
purchasing discount products.

People with lower incomes have less disposable income. Value is a major determinant in the products they purchase.
Hence, a company may best reach lower-income people through discount retailers and wholesalers and attract higher-
income buyers in specialty retail shops.

Age Variables that Impact Business

Age is another demographic element that impacts businesses. A company's products and services are more likely to appeal
to certain age groups. Younger people under 35 are often the first consumers to purchase high-tech products like cell
phones, electronic books and video games. The millennial generation is increasing buying power and growing market
share while baby boomers remain a large and viable group as well.

For example, there are about 76 million baby boomers in the United States, according to "Entrepreneur" online. This is the
single largest population segment. These people were born between 1946 and 1964, according to "Elderly Journal" online.
This demographic currently controls about 70 percent of the disposable income in the United States and will only grow

24
more wealthy in the next two decades as they inherit $15 trillion. Appealing to Baby Boomers is a strategy that can work
in nearly all sectors, from automotive and financial planning to travel and healthcare.

Geographic Region Variables

People's buying preferences also vary by geographic region, which is another type of demographic. Those who meet
buyers' needs and requirements in certain geographic regions can earn higher sales and profits. For example, people often
prefer certain food and drink flavors in certain markets.

Companies that sell the flavors consumers desire in various areas are more likely to profit. Those who do not offer these
flavors may risk losing customers to other competitors.

Education Level as a Variable

Buyers' education levels also impact the types of purchases they make. Higher levels of education are correlated with
higher household incomes, and this higher income drives many educated buyers' purchasing choices. One example is
higher earning households' greater likelihood to buy more nutritionally dense groceries. Another is educated parents'
greater likelihood to invest in their children's educations through tutoring, standardized test prep and financial planning for
college.

Obtaining Demographic Information

One of the best ways to collect consumer demographic data is through market research surveys. These surveys can be
conducted by phone, mail, Internet, email or in person. The key is collecting as much demographic information as
possible. Other demographic variables, besides age, income and geography, include household size, education,
occupation, gender, race and employment status.

Technological Factors Affecting Marketing Environment!

New technologies can be used very effectively to counter inflation and recession. New machines can reduce production
costs.

Technological Factors
The increasing computing and processing capabilities of personal computers is enhancing the efficiency and effectiveness
of businesses. Advances in information technology has made it possible to plan truly global supply chains, in which
manufacturing and warehousing are distributed throughout the world depending on where these activities can be
performed best.

Companies will be able to make better products at lower cost, and will be able to distribute them economically when
supply chains become global. An economy’s ability to generate wealth will be largely dependent on the speed and
effectiveness with which they invent and adopt machines that improve their productivity.

Technologies for nations:

Economies will need to excel in both basic and applied research. Basic research attempts to expand the frontiers of
knowledge but is not aimed at a specific problem. Economies which are well off should concentrate more on basic
research because they can remain ahead of other economies only by creating new businesses through inventing new
technologies by basic research.

Developed economies should be ready to relinquish businesses they are currently excelling in, because other economies
will catch up with them and the developed economies will not be able to charge premium prices for their products and
services.

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Technologies for products and services:
New products and services are possible because of new technologies. These help to increase revenues and profits of
companies. At different times in history, technologies have created new businesses like automobiles, railways, telephones,
computers, etc. Currently we are seeing new products and services being developed by emerging technologies like
internet, mobile connectivity, nanotechnology, genetic engineering, etc. These technologies are likely to fuel growth in the
near future.

Technologies for business models:

Companies also use new technologies to do business differently and more effectively. Dell is able to sell its product
directly to business customers because Internet enables it to be in contact with its customers without incurring much
expense. It gleans valuable information about its customers from the interactions it has with them. Dell uses this
information to segment its market further and then focuses its attention on the most profitable customers.

Thus by using the Internet, Dell is able to earn greater profits by serving only the most profitable customers. There are
companies in fragrance and other businesses which have equipped their customers with design tools. The customers
design their own products and services, and the companies manufacture them.

Social-cultural Factors:
Customers live in societies. An individual is dependent on the society he resides in. Social factors include attitudes, values
and lifestyles of people. Social factors influence the products people buy, the prices they are willing to pay for the
products, the effectiveness of specific promotions, and how, where, and when people expect to purchase products. But
societies are hardly ever static.

15. “With over 30 different languages, over 200 mother tongues and around 2000 dialects, India is a complex nation of
cultures and sub-cultures”. With the help of real world example, explain how might the differing cultures and sub-
cultures affect marketing decision?

Companies that are growing are always on the lookout for new opportunities. Some of these opportunities present
themselves in new countries, while others exist right here at home. In either case, focusing on specific cultural
groups can open up new markets for your company. Product diversification and growth may demand a product to
be introduced on a global level.

To develop a successful marketing strategy, an organization must take into consideration the cultural influences of
the society where a new product is being introduced. People make decisions about consumption of a product
based on these cultural influences.

Cultural Values of a Scoiety

Values of a society dictate what is acceptable and unacceptable behavior. Values can sometimes be broadly
generalized for an entire country. For example, the United States is generally considered highly individualistic,
with citizens making purchasing decisions based on personal preferences. In other countries, such as Japan,
people tend to make purchasing decisions based on the welfare of a group, such as the family.

The way this plays out in marketing strategies is that ads focused on individuals do better in individualistic
countries while group advertising works better in countries with collective group values.

Cultural Values can Vary Within a Country

But cultural values vary within a country as well. Marketing strategies for urbanites on the East Coast of the U.S.
are markedly different from rural residents in mid-America. Marketing to these different demographics should
reflect these cultural differences.
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 Symbols and Symbolism
Symbols in relation to cultural influences refers to language, both spoken and unspoken. Language is a symbol of
cultural pride. While some foreign influence may be acceptable, a culture may want to preserve its specific
cultural heritage. A marketer would need to conform advertising in such a country into language symbols
acceptable to the population of that particular country.

Similarly, marketing to immigrant populations in the U.S. who still speak the language of their native country
should take into consideration the best way to reach out to these specific audiences. Other forms of culture
symbols include folklore, drama, dance and music.

Rituals Play a Role

Rituals are patterns of behaviors that are learned and repeated. Rituals play an important role in how life events,
such as births, marriages, graduations and funerals, are conducted in different cultures. Life is also full of smaller
rituals such as watching a television show at a certain time or having dinner every Tuesday at your favorite
restaurant. Rituals play an important role in marketing strategies as they focus on consumers' everyday
interactions and how these interactions will play into the promotion and selling of a product or service.

Thought Processes can Vary Among Cultures

Thought processes may vary among different cultures. This could affect the way a marketing strategy is
perceived. People who are part of one culture may take in the whole picture in an advertisement and be able to
report specific details of what they have seen, even in the background; those of another culture may only see and
identify with the central figure and ignore background items altogether. This would affect the way a marketer
presents his message based on cultural thought processes.

16. Discuss some of the psychographic trends of interest to marketers in India and discuss whether these trends pose
opportunities or threats to marketers.

Psychographics are the attitudes, interests, personality, values, opinions, and lifestyle of your target market.
Psychographics are incredibly valuable for marketing, but they also have use cases in opinion research, prediction,
and broader social research.

Psychographics deal primarily with what are known as IAO variables—interests, activities, and opinions. They
attempt to identify the beliefs and emotions of an audience, not just their age and gender.

chart showing market segmentation with demographics, psychographics, Geographic’s, and behavioral data.
The main types of psychographics are interests, activities, and opinions. You can split that into subcategories as
well. (Attitudes are slightly different than opinions; lifestyle and behavior are slightly different than activities).

the main three.

1. Interests
Interests are inclinations and affinities.
You can find some basic interests and affinities in your Google Analytics data. I’ll be honest, I really haven’t
done much with Google Analytics’ reported interest data (at least in terms of conversion optimization), though
there are ways to use this data.

For instance, you can see conversion rates and ecommerce data based on affinity category:
google analytics affinity report.
This data, I suppose, could provide a little bit of insight into your best customers. Realistically, however, I don’t
think this is the most valuable Google Analytics data.

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 2. Activities
Activities are what people do—things like skiing, reading, fishing, weightlifting.
person with skis on mountain.
Sometimes this data is irrelevant. For instance, if you sell a SaaS product, you can’t immediately do anything with
the fact that some of your customers like to fish.

But if you ask the right questions—good, open-ended questions that let you know your customer better—you can
learn how customers spend their day, what they care about, where they hang out, and what they align with. A
simple question like, “Other than work and sleep, how do you spend your time?” can elicit great responses.

You can use trends in activity psychographics to better target your customer via ads, write better content that uses
metaphors and references from their activities, or cater events and even selling to their preferences.

3. Opinions
Everyone has opinions. When people have similar opinions, they tend to form tribes
Have you noticed an increase in brands displaying their opinions and values? When Super Bowl commercials
have been controversial, and it was usually because they ventured to share an opinion of the world.
Opinions and attitudes are an untapped opportunity for brands. Instead of repeated exposure via display ads,
introducing values to your brand can help people know where to stand in relation to your company.
Think of a brand like Patagonia. You know what they stand for. Patagonia website listing its brand values.

17. A leading American fast food company, which specialize in sandwiches and coffee wishes to enter Indian market.
Having engaged you as a consultant, what scanning techniques would you apply to analyze environment? Explain.

Environment scanning is that exercise that involves continuous process of monitoring the dynamic- interplay of
all those forces namely, economic, competitive, technological, socio-cultural, demographic and political forces to
determine the opportunities.

The environmental scanning (appraisal) is the process by which promo0ters of the companies tries to monitor the
economic changes, Governmental changes, supplier’s attitude and market changes to determine new opportunities
and threats if any.

In simple words environmental analysis relates to identification and analyzing environmental influences
individually and collectively to face the future effects upon the society and business. Here the main stress is on
tracing the sources of new opportunities or threats. No one can deny that it is not useful for evaluating the present
strategy, new norms for future strategic decisions.

Techniques
Environmental scanning leads to the identification of many issues that affects the organization. It results in a mass
of information related to different sectors of the environment. There is a wide range of methods and techniques
available for environmental scanning.

The organizations employ various methods and techniques to monitor the environment and to gather data to
derive information about the opportunities and threats that affect their business.

I. PEST Analysis:
The scanning starts with an external analysis of the business environment, often called a PEST analysis, and then
look at the organization’s internal strengths and weaknesses, relative to internal factors such as prior performance
and also to external factors, which may have been highlighted in the PEST analysis.

28
The final stage is to combine the analyses to look at opportunities and threats facing the organization and to draw
up plans to take advantage of the opportunities and to counter the threats.

1. Political Factors:

Political-legal environment consists of governmental legislation and regulation that can have significant effects on
a company’s operations. When examining political factors, an organization needs to look at any political changes
that could effect its business. What laws are being drafted? What global changes are occurring? Legislation on
maternity rights, data protection, health & safety, environmental policy, should be considered, for example.

Some of the major political-legal elements that may affect an organisation are anti-trust regulations, tax laws,
special incentives, foreign trade regulations, attitudes towards foreign companies, laws on hiring and promotion,
stability of government etc. Political-legal environment is very important for businesses to analyse because it may
stabilise or de-stabilise national markets for products.

2. Economical:

The economical environment of the country can have significant effects on the organisations and therefore they
should analyse the economical environment carefully before crafting a strategy.

Major elements of economical environment that businesses may consider are GDP and GNP trends, Tax rates,
interest rates, inflation rates, purchasing power parity (PPP), cost of labour, unemployment levels, valuation of
currency etc. For example, businesses may enter a new country for operations with relatively high PPP so that it
can have high demand for its goods.

3. Social:

Social factors influence people’s choices and include the beliefs, values and attitudes of society. So understanding
changes in this area can be crucial. Such changes can impact purchasing behaviour.
Environmental Scanning – Techniques
Collection of information and its proper interpretation provide a sound basis for analyzing the opportunities and
threats in the environment. A wide range of techniques is available for environmental scanning that is formal and
systematic as well as intuitive methods.

Strategists may select techniques that suit their needs of environmental analysis. Glueck describes three major
search techniques, i.e. information gathering, spying and forecasting. Recently ‘Benchmarking’ has emerged as
another technique of environment search.

Technique

1. Information Gathering:

The management can know a great deal about environmental factors by gathering verbal as well as written
information. Verbal information is collected by hearing reports from different sources informally and formally.

The major sources of verbal information are radio, television and internet, firm’s employees and from those
outside the enterprise including the customers, wholesalers, brokers, suppliers, competitors and employees,
bankers, stockbrokers, stock analysts, consultants and researchers, etc. By interacting with these people during
various meetings and conferences, the strategists can get first-hand information about the environment.

29
 2. Spying:

Spying is useful in knowing about potential or actual competitors. The top executives employ an individual or
individuals to collect trade secrets. An employee of the competitor or his supplier or customer can also be
engaged to get regular information about the competitor’s activities. A professional spy can be engaged for
gathering trade secrets.

3. Forecasting:

Forecasting concerns estimating those future events that would have a significant impact upon the work to be
performed by the management and upon the objectives to be pursued by them. In effect, it anticipates probable
occurrences rather than waiting for them to happen and merely reacting to them.

Forecasting aims to reduce the uncertainty of the future. A number of techniques have been developed with which
corporate planners can effectively predict the various components of the external environment and can know the
future with certainty.

With the development of more sophisticated forecasting techniques, along with the advent of computer, especially
the proliferation of the personal computer and associated software, forecasting has received more and more
attention. Every manager now has the ability to use very sophisticated data analysis techniques for forecasting
purposes.

4. Delphi Method:

The Delphi technique is a more formal version of the jury of opinion method. It was originally developed by the
Rand Corporation to forecast military events. In this technique, experts from a wide variety of related fields both
from inside and outside an organization’s ranks are approached to fill the detailed questionnaire about the problem
under consideration without disclosing their identity.

These opinions are then compiled and the summary of the responses is sent again to the experts who are asked to
review and possibly revise their estimates and if it is out of line with others, to explain the reason for this. This
process is repeated several times until a consensus prediction is arrived at. When a convergence of opinion begins
to occur, results are then used as an acceptable forecast.

5. Scenario Planning:

B. Nanus proposed QUEST (Quick Environmental Scanning Technique) that uses scenario- writing for
environmental scanning and developing strategic options. A scenario is “a tool for ordering one’s perceptions
about alternative future environments in which one’s decisions might be played out”.

18. Explain industry structure analysis using Porter's five forces framework.

Porter's Five Forces is a simple but powerful tool for understanding the competitiveness of your business
environment, and for identifying your strategy's potential profitability.

This is useful, because, when you understand the forces in your environment or industry that can affect your
profitability, you'll be able to adjust your strategy accordingly. For example, you could take fair advantage of a
strong position or improve a weak one, and avoid taking wrong steps in future.

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 Porter's five forces These are:

Competitive Rivalry.
This looks at the number and strength of your competitors. How many rivals do you have? Who are they, and how
does the quality of their products and services compare with yours?

Where rivalry is intense, companies can attract customers with aggressive price cuts and high-impact marketing
campaigns. Also, in markets with lots of rivals, your suppliers and buyers can go elsewhere if they feel that they're
not getting a good deal from you.

On the other hand, where competitive rivalry is minimal, and no one else is doing what you do, then you'll likely
have tremendous strength and healthy profits.

Supplier Power.
This is determined by how easy it is for your suppliers to increase their prices. How many potential suppliers do
you have? How unique is the product or service that they provide, and how expensive would it be to switch from
one supplier to another?

The more you have to choose from, the easier it will be to switch to a cheaper alternative. But the fewer suppliers
there are, and the more you need their help, the stronger their position and their ability to charge you more. That
can impact your profit.

Buyer Power.
Here, you ask yourself how easy it is for buyers to drive your prices down. How many buyers are there, and how
big are their orders? How much would it cost them to switch from your products and services to those of a rival?
Are your buyers strong enough to dictate terms to you?

When you deal with only a few savvy customers, they have more power, but your power increases if you have
many customers.

Threat of Substitution.
This refers to the likelihood of your customers finding a different way of doing what you do. For example, if you
supply a unique software product that automates an important process, people may substitute it by doing the
process manually or by outsourcing it. A substitution that is easy and cheap to make can weaken your position and
threaten your profitability.
Threat of New Entry. Your position can be affected by people's ability to enter your market. So, think about how
easily this could be done. How easy is it to get a foothold in your industry or market? How much would it cost,
and how tightly is your sector regulated?

If it takes little money and effort to enter your market and compete effectively, or if you have little protection for
your key technologies, then rivals can quickly enter your market and weaken your position. If you have strong and
durable barriers to entry, then you can preserve a favorable position and take fair advantage of it.

19. You are the new marketing manager for a firm that produces a line of athletic shoes to be targeted to the college student
subculture. List some product attributes that might appeal to this subculture, list the steps in your customers’ purchase
process, and recommend some marketing strategies that can influence their decision.

Ans.
Understanding the consumer behaviour

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is the basic for marketing strategy formulation. Consumers reaction to this strategy determines the organization success or
failure. In this competitive environment Organisations can survive
only by offering more customer value - difference between all the benefits derived from a total product and all the costs of
acquiring those benefits – than competitors. Providing superior customer value requires the organization to do a
better job of anticipating and reacting to the customer needs than the competitor. Marketing strategy is basically the answer
to the question: How will company provide superior customer value to its target market? The answer to this question
requires formulation of marketing - mix – product, price, place and promotion - strategies. The right combination of these
elements meets customer expectation and provides customer value. For example, marketer of a bike must know the
customers performance expectations, desired service, Price willing to pay, information he seeks and after-sales service to
provide superior customer value

The most important environment in which firms operate is their customer Environment because the basic belief of
marketing oriented company – that the Customer is the center around which the business revolves. Therefore,
marketing. People need to understand the processes that their customers go through when
Making decision.
The consumer decision making process involves series of related and sequential Stages of activities. The process
begins with the discovery and recognition of an Unsatisfied need or want. It becomes a drive. Consumer begins search
for Information. This search gives rise to various alternatives and finally the Purchase decision is made. Then buyer
evaluates the post purchase behavior to Know the level of satisfaction.

Understanding MARKET SEGMENTATION

Market segmentation depends on two levels − the strategic level and the tactical level. At a strategic level, it has a
direct link with the decisions on positioning. At a tactical level, it relates with the decision of which consumer
groups are to be targeted. We will discuss here the parameters based on which a market can be segmented.

Market Segmentation
Geographic Segmentation
Prospective customers are in local, state, regional or national marketplace segment. If a firm is selling a product
such as a farm equipment, the geographic location will remain a major factor in segmenting the target markets
because their customers are located in specific rural areas.

In case of retail stores, geographic location of the store is one of the most important considerations. Here, urban
areas are preferred.

Segmentation of customers based on geographic factors are −

 Region − Segmentation by continent / country / state / district / city.

 Size − Segmentation on the basis of size of an urban area as per the population size.

 Population Density − Segmentation on the basis of population density such as urban / sub-urban / rural
etc.

Demographic Segmentation
Market segmentation can be done based on demographic factors such as Age. For example, Rico watches have
segmented their product portfolio according to different age groups of people.

Psychographic Segmentation

32
 Psychographic Segmentation focuses on group customers according to their life-style and purchasing psychology.
Many businesses offer products based on the attitudes, beliefs and emotions, ideas, and perceptions of the target
market. Psychographic segmentation includes variables such as Activities, Interests, Opinions, Attitudes, and
Values.

Behavioralistic Segmentation
Markets can be segmented on the basis of buyer behavior. It is because the buying behavior of consumers differ
based on the geographic, demographic and psychographic factors. Marketers often find practical benefits in using
buying behavior as a separate segmentation basis in addition to factors like geographic, demographics, and
psychographics.

Marketing strategies and tactics

are normally based on explicit and implicit beliefs about consumer behavior. Decisions based on explicit
assumptions and sound theory and research are more likely to be successful than the decisions based solely on
implicit intuition.
Knowledge of consumer behavior can be an important competitive advantage while formulating marketing
strategies. It can greatly reduce the odds of bad decisions and market failures. The principles of consumer
behavior are useful in many areas of marketing, some of which are listed below −
Analyzing Market Opportunity
Consumer behavior helps in identifying the unfulfilled needs and wants of consumers. This requires scanning the
trends and conditions operating in the market area, customer’s lifestyles, income levels and growing influences.
Selecting Target Market
The scanning and evaluating of market opportunities helps in identifying different consumer segments with
different and exceptional wants and needs. Identifying these groups, learning how to make buying decisions
enables the marketer to design products or services as per the requirements.
Example − Consumer studies show that many existing and potential shampoo users did not want to buy shampoo
packs priced at Rs 60 or more. They would rather prefer a low price packet/sachet containing sufficient quantity
for one or two washes. This resulted in companies introducing shampoo sachets at a minimal price which has
provided unbelievable returns and the trick paid off wonderfully well.
Marketing-Mix Decisions
Once the unfulfilled needs and wants are identified, the marketer has to determine the precise mix of four P’s, i.e.,
Product, Price, Place, and Promotion.
 Product
A marketer needs to design products or services that would satisfy the unsatisfied needs or wants of consumers.
Decisions taken for the product are related to size, shape, and features. The marketer also has to decide about
packaging, important aspects of service, warranties, conditions, and accessories.
Example − Nestle first introduced Maggi noodles in masala and capsicum flavors. Subsequently, keeping
consumer preferences in other regions in mind, the company introduced Garlic, Sambar, Atta Maggi, Soupy
noodles, and other flavours.
 Price
The second important component of marketing mix is price. Marketers must decide what price to be charged for a
product or service, to stay competitive in a tough market. These decisions influence the flow of returns to the
company.
 Place
The next decision is related to the distribution channel, i.e., where and how to offer the products and services at
the final stage. The following decisions are taken regarding the distribution mix –

1. Are the products to be sold through all the retail outlets or only through the selected ones?
2. Should the marketer use only the existing outlets that sell the competing brands? Or, should they indulge in new
elite outlets selling only the marketer’s brands?
3. Is the location of the retail outlets important from the customers’ point of view?

33
 4. Should the company think of direct marketing and selling?

 Promotion deals with building a relationship with the consumers through the channels of marketing communication.
Some of the popular promotion techniques include advertising, personal selling, sales promotion, publicity, and direct
marketing and selling.
The marketer has to decide which method would be most suitable to effectively reach the consumers. Should it be
advertising alone or should it be combined with sales promotion techniques? The company has to know its target
consumers, their location, their taste and preferences, which media do they have access to, lifestyles, etc.

20. Explain the stages of consumer buyer decision process and describe how you or your family went through this process
to make a recent purchase.

STEPS IN DECISION MAKING PROCESS

 Need Recognition
 Information Search
 Evaluation of Alternatives
 Purchase Decision
 Post-Purchase Behavior

1. Need Recognition
When a person has an unsatisfied need, the buying process begins to satisfy the needs. The need may be activated by
internal or external factors. The intensity of the want will indicate the speed with which a person will move to fulfill
the want. On the basis of need and its urgency, forms the order of priority. Marketers should provide required
information of selling points.
2. Information Search
Identified needs can be satisfied only when desired product is known and also easily available. Different products are
available in the market, but consumer must know which product or brand gives him maximum satisfaction. And the
person has to search out for relevant information of the product, brand or location. Consumers can use many sources
e.g., neighbors, friends and family. Marketers also provide relevant information through advertisements, retailers,
dealers, packaging and sales promotion, and window displaying. Mass media
like newspapers, radio, and television provide information. Now a day’s internet has become an important and reliable
source of information. Marketers are expected to provide latest, reliable and adequate information.
3. Evaluation of Alternatives
This is a critical stage in the process of buying. Following are important elements in the process of alternatives
evaluation
a) A product is viewed as a bundle of attributes. These attributes or features are used for evaluating products or brands.
For example, in washing machine consumer considers price, capacity, technology, quality, model and size.
b) Factors like company, brand image, country, distribution network and aftersales service also become critical in
evaluation.
c)Marketers should understand the importance of these factors to consumers of these factor to consumers while
manufacturing and marketing their products.
4. Purchase Decision
Outcome of the evaluation develops likes and dislikes about alternative products or brands in consumers. This attitude
towards the brand influences a decision as to buy or not to buy. Thus the prospective buyer heads towards final
selection. In addition to all the above factors, situational factors like finance options, dealer terms, falling prices etc.,
are also considered.
5. Post- Purchase Behavior
This behavior of consumer is more important as for as marketer is concerned. Consumer gets brand preference only
when that brand lives up to his expectation. This brand preference naturally repeats sales of marketer. A

34
 satisfied buyer is a silent advertisement. But, if the used brand does not yield desired satisfaction, negative feeling will
occur and that will lead to the formation of negative attitude towards brand. This phenomenon is called
cognitive dissonance. Marketers try to use this phenomenon to attract user of other brands to their brands. Different
promotional-mix elements can help marketers to retain his customers as well as to attract new customers.

21. How is industrial / organization buyer behavior different from individual consumer behavior? Explain with examples.

DIFFERENCE BETWEEN CONSUMER BUYING & INDUSTRIAL BUYING

Consumer Buying
The buying behavior of individual and household who buy goods & services for personal consumption is known as
Consumer buying.
Industrial Buying
This buying is the decision – making process by which formal organizations establish the need for purchased products
and services and identify, evaluate, and choose among alternative brands & suppliers.

o Consumer buying are those who purchase items for their personal consumption.
In this less Dollars & Items are involved in sales.
In this buyers prefer to buy a total solution to their problem from one seller. (system buying)
o Industrial Buying are those who purchase items on behalf of their business or organization.
In this more Dollars & Items are involved in sales.
o Consumer Buying is done in order to satisfy the needs of the consumers.
In Consumer buying, purchase volume is small.
o Industrial Buying can not satisfy the consumer’s need but can satisfy the needs of industrialists. It does the
production of those products which can satisfy the needs of consumers.
In Industrial Buying, purchase volume is large.
o In Consumer Buying, the number of customers are many.
In Consumer Buying, the location of buyer is Dispersed.
In Consumer Buying, the nature of consumer Buying is more personal.
In this the nature of buying influence is single.
o In Industrial buying, the number of customers are fewer.
In Industrial buying, location of buyer is Geographically concentrated.
In Industrial Buying, the nature of industrial buying is more professional.
In this the nature of buying influence is multiple.
o In Consumer Buying, there are many buyers in the market.
In consumer Buying , importance of one person as a buyer is there.
Consumer Products are considered as daily used Products.
o In Industrial Buying, there are fewer potential buyers in the market.
In Industrial Buying, there is little importance for one person buying.
Industrial Products are not considered as daily used Products.
Sales promotion is there.
o Consumer buying is very quick process. It doesn't requires any type of data or presentations.
In this repeat sale is allowed.
Sales promotion is not there.
o Industrial buying requires more and proper scientific data as well as presentations.
35
 In this repeat sale is not allowed.
o In Consumer Buying individual and family involvement takes place.
Consumer buying includes many purchasing procedures.
In Consumer Buying the products are standard and with detailed specification.
o In Industrial Buying group decisions and many buying influences takes place.
Industrial Buying includes impulse, planned or experiential procedures.
In Industrial Buying the products are with technical complexity. They are standard or customized.
o Consumer products are :- eatable products, usable products etc.
o Industrial products are :- raw materials, fabrication parts and materials, installation, accessories, equipments etc

22. Your boss has just asked you, the company purchasing manager, to buy new computers for an entire department. Since
you have just recently purchased a new home computer, you are well educated about the various products available.
How will your buying process for the company differ from your recent purchase for yourself

Self learning.

23. What are the various ways to segment a market? What are the requirements of effective segmentation?

Geographic Segmentation
Prospective customers are in local, state, regional or national marketplace segment. If a firm is selling a product such
as a farm equipment, the geographic location will remain a major factor in segmenting the target markets because their
customers are located in specific rural areas.

In case of retail stores, geographic location of the store is one of the most important considerations. Here, urban areas
are preferred.

Segmentation of customers based on geographic factors are −

 Region − Segmentation by continent / country / state / district / city.

 Size − Segmentation on the basis of size of an urban area as per the population size.

 Population Density − Segmentation on the basis of population density such as urban / sub-urban / rural etc.

Demographic Segmentation
Market segmentation can be done based on demographic factors such as Age. For example, Rico watches have
segmented their product portfolio according to different age groups of people.

Psychographic Segmentation
Psychographic Segmentation focuses on group customers according to their life-style and purchasing psychology.
Many businesses offer products based on the attitudes, beliefs and emotions, ideas, and perceptions of the target market.
Psychographic segmentation includes variables such as Activities, Interests, Opinions, Attitudes, and Values.

Behavioralistic Segmentation
Markets can be segmented on the basis of buyer behavior. It is because the buying behavior of consumers differ based
on the geographic, demographic and psychographic factors. Marketers often find practical benefits in using buying
behavior as a separate segmentation basis in addition to factors like geographic, demographics, and psychographics.

24. What are the alternative targeting strategies? Explain the factors affecting targeting strategy.

36
MARKET TARGETING – TARGET SEGMENTS EFFICIENTLY AND EFFECTIVELY
We have learnt in the section Market Segmentation that a company cannot serve all consumers in the total market.
Their variety and that of their needs is simply too large. Therefore, we have segmented the market, by dividing it up
into small segments. Now, we should target those segments we can serve most efficiently and effectively: Market
Targeting. This is the second step of setting up a marketing strategy.

Market Segmentation, Market Targeting, Positioning and Differentiation - necessary for an integrated Marketing
Strategy.Market Segmentation, Market Targeting, Positioning and Differentiation – necessary for an integrated
Marketing Strategy.
After having distinguished between the separate segments in a market, the company can select one or more of these
segments to enter. Before doing this blindly, each segment should be assessed. Therefore, targeting is concerned with
evaluating each segment’s attractiveness for the company and selecting one or more segments to enter. The evaluation
of segments is based on the question which segment the company can serve best. In other words, we should concentrate
on and enter those segments in which we can generate the greatest customer value over time.

The Market Targeting Process

We will now look at the process of Market Targeting in two simple steps. Firstly, we have to evaluate the market
segments. Then, we select target market segments. This last step goes in hand in hand with choosing the targeting
strategy.

Market Targeting in two simple stepsMarket Targeting in two simple steps

Evaluating Market Segments – Step one of Market Targeting

As said, we start with the market targeting process by assessing the different segments we identified in the market
segmentation. But based on which criteria do we evaluate the segments? In assessing market segments, a firm should
consider three factors. These are:

The segment size and growth

The segment structural attractiveness
The company objectives and resources.
In order to evaluate segments, the company needs to collect and analyse relevant data first. This data may include
information on current segment sales, growth rates and anticipated profitability of segments. But even if we have these
data, what is the right size and the right growth for our company? The largest or fastest-growing ones? Or small niche
segments? There is no answer that applies to every company. In fact, it depends on the company itself. Therefore, the
company objectives and resources are as important as the segment size, growth, or structural attractiveness. A smaller
company could lack the skills and resources necessary to serve a large segment. Or such a small company might find
that segment too competitive, not fitting its strategy. Therefore, some companies will focus on small segments that
might appear less attractive to outsider. For the company, though, it may be a more attractive and profitable choice.

Selecting Target Market Segments – Step two of Market Targeting

After having assessed the identified market segments, we can now go on with selecting the most profitable ones for
the company. First of all, what is a target market? It refers to one set of buyers who share common needs or
characteristics the firm decides to serve. So, the company has to decide which and how many segments it will target.
Thus, we arrive at the actual core activity of market targeting. Market targeting can take different forms. These are
referred to as levels of market targeting. A firm can target very broadly, which is called undifferentiated marketing.
Market targeting can also be very narrow, which is called micromarketing. If it is somewhere in between, it might be
differentiated or concentrated market targeting.

Factors influencing the Choice of the Market Targeting Strategy

37
 Which market targeting strategy is chosen depends on many factors. None of the strategies above works best in every
situation. Rather, the market targeting strategy depends on several characteristics of the company. When choosing a
market targeting strategy, the company should consider:

The company’s resources. If resources are limited, a concentrated market targeting strategy might make more sense.
The degree of product variability. In case of uniform products, such as apples or steel, undifferentiated marketing may
be more suited. In case of products that can vary in design (cars, cameras etc.), more narrow differentiation and
concentration is suitable.
The product life cycle. When a company introduces a new product, it may be helpful to launch only one version.
Undifferentiated or concentrated marketing might make most sense. In the mature stage, a segmented market targeting
may be appropriate.
Market variability. If you talk about a kind of product where all buyers have the same tastes, buy the same amounts
etc., undifferentiated marketing makes sense.
Competitors’ marketing strategies. If competitors apply differentiated or concentrated market targeting strategies, using
undifferentiated marketing may prove to be fatal. However, the firm might also gain an advantage by using a different
market targeting strategy than competitors, especially if it can serve individual customers better by meeting their needs.
Then, a concentrated market targeting strategy or micromarketing will work best.

25. Critically evaluate the market segments for Titan, Rado and Rolex brand of watches. What are the value propositions
of each of these brands for different market segments?

Titan, a Tata group company entered the watch market in 1987. Since then it has developed into one of the most
recognized brands in India. In fact, in a recent survey conducted by A&M, Titan emerged as the top brand in the
consumer durable segment.HMT, the undisputed leader of the wristwatch market before Titan’s entry completely
neglected the quartz watch segment. Titan successfully filled this gap. Its wide range of designs, high profile
advertising and distribution network helped it gain a substantial market share in a short span of time. The Titan
brand was essentially positioned as a premium brand.

Discussion and Analysis

In order to Understand the Indian customer’s psyche, Titan has been reaching its present position of strength. The
company today has a model for every price segment and every market, urban and rural, regional and international.
Within the Titan mother brand are Nebula, which comes draped in 18-carat gold; the exclusive Insignia; PSI, for
those turned on by technology; and Raga, which has been considered exclusively for women. Titan’s focus has
always been on India. Research reveals some interesting facts and figures about this diverse market.

“Reparability, and visibility”, is where Titan scores. Even though a Swatch’s likelihood of needing repairs is
minimal, it would have to be dissembled even for as small a thing as a change of battery. Titan’s products have
come down from being a rich man’s watch to that of everybody’s watch with TITAN still being something for
somebody and not everything for everybody.

The Target Market

A collection of watches will contemporary styles that are young and distinctive. Designs that go from the relaxed
and informal to the definitely sporty. The woman’s collection presents the all new international `Frosted’ look,
which is trendy and chic. The Fastrack collection has elements like cool mesh straps and features that include EL
back-light and dual time. (Roth, 2007, 122) Also presenting a range of fashion digitals in contemporary wrist
hugging cases with oversized displays and features that include countdown timers, chronographs, lap timers,
hourly chime, alarm and Hi-light glow (Roth, 2007, 122).

Exacta

perfect combination of dateless styling and design simplicity, Exacta is the all-steel look in Titan. Everyday
watches for those who value fundamental principles of durability, reliability and affordability.
38
Spectra

A truly unique collection of watches that combines the sturdiness of steel with the richness of gold. International
in styling the `Spectra’ collection is designed for those who look beyond the ordinary.

Royal

A stunning collection of alluring gold-plated cases matched with exquisite gold-plated straps, the `Royale’
collection has designs that suit everyday wear.

Raga

Exclusive watches for women. The Raga and Silver Raga collection is elegant, delicate and feminine with each
piece being truly unique. An existing collection that includes decorative motifs, `kadas’, studded bracelets and a
first of its kind three-in-one watch. The designs are inspired by traditional Indian as well as contemporary motifs
and are expressed in ropes, `kadas’ and ornamental bracelets. Crafted exclusively for the sophisticated woman,
who wears silver jewellery with élan, the Silver Raga makes a perfect accessory that completes a woman’s
wardrobe.

Bandhan

Watches for him and her. The pair watches of the `Bandhan’ range are Titan’s tribute to the everlasting quality of
a bond between a man and woman The Bandhan Collection is available in both leather straps and gold bracelets
and its presented in uniquely designed packaging (Kelly, 2006, 144).

Edge

The Titan EDGE is the Slimmest Watch in the Universe; a mere 3.5 millimeter thick, the watch is practically
invisible. Delicately crafted with precision, it has an incredibly Slim Movement of 1.15 millimetes. Furthermore,
the Titan Edge is Water Resistant to a depth of 30 meters, an attribute rarely ever seen in slim watches. Titan’s
Edge comes with an elemental One-Piece case made from Non-Allergic Stainless Steel, and a Sapphire Crystal
that market it Scratch Resistant.

Competitive Analysis
Titan’s portfolio comprises of products from Rs.295 – Rs.45000. Many competitors do not go beyond a certain
range or do not come down below a certain range. For E.G. To start of with the lower segment maxima quartz,
HMT, IMFQ (Chinese watches), Titan offers its Sonata brand which comprises of about 47-50% of the titan sales
(Figures according to showroom owners), backed by the guarantee of TATA-India’s biggest business house
which people have faith in. The guarantee, the Research and development, value for money, new innovative
designs, wide dealer network, the committed service team, discounts and offers is some of the things which means
a lot a price sensitive market, the lower segment in which Titan carves itself the path to being the market leader
(Kelly, 2006, 144).

Moving on a little above top what is the future of the watch industry and is the fastest growing segment today
Swatch which is known for it name in watches owns a segment in the range of aboutRs.3500-10000. More so ever
these watches are more of the sporty type with steel being their trademark of it’s the entire range of formal
watches but both the sporty and the formal are difficult to find under one name In view to these companies Titan
offers its world watch, The steel collection, the fast track, the edge, the bandhan, the world watch (a part of it).
The titan portfolio in these ranges boast of steel watches, the formal wear, the slimmest watch in the world, a gold
plated watch, the tendy youth watches, and the World Watch – International Styling Indian Prices. Competition is

39
head on with such companies which are gaining importance in today’s society. These companies have a Niche
market for themselves and pertain to a particular segment but Titan it’s more flexible in pricing offering more
value for money. Moving on further up the pricing ranges we come to a market which is not price sensitive but
wants an exclusive product and who do not mind paying the price. Rado which is known for its expensive
diamond watches, have a niche for the top cream of the society. Titan manages to cater to these segments with the
Nebula, the Edge, the Insignia, the World watch, distinguishing itself for example as the slimmest watch in the
world giving oneself the identity no one can offer, pure gold watches and combined with Tanishq which
apparently has gained a status of its own jewellery with watches. This unique concept plays well for titan to offer
a wide range of products with the Indian touch and providing the customer a well designed international store,
these products offer satisfaction and a sense of well being (based on research details), couples watches, the gifting
technique, wide dealer network , selling on emotions, the use of festivals and occasions, combining new products
with the old ones which one no one in the watch market can boast of are some of the techniques none in the upper
market can do (Kelly, 2006, 144).

Thus broadly speaking TITAN has 60% of the watch market in India Today because companies existing have a
niche market where as TITAN gives the flexibility to the customer to choose a watch more or less than his budget
giving him the same guarantee, the name TATA, a wide dealer network, an international store, and more so ever
value for money. Following is the list of competitors:

Rado

Casio

Seiko

Esprit

Citizen

Swatch

Cartier

Giordano

Longiness

Maxima quartz

Imfq-indian made foreign quartz

Fashion houses – Dkny, Gucci, Adidas, Nike, Bvlgary

Segmentation Strategy
After carrying out an in-depth market study, Titan identified three distinct market segments for its watches. The
segments were arrived at using benefit and income level as the bases. The first consisted of the high income/ elite
consumers who were buying a watch as a fashion accessory not as a mere instrument showing time. They were
also willing to buy a watch on impulse. The price tag did not matter to this segment (Kelly, 2006, 144).

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The next segment consisted of consumers who preferred some fashion in their watches but to them price did
matter. While they had the capacity to pay the price required for a good watch, they would not purchase a watch
without comparing various offers in the market. The third segment consisted of the lower-income consumers who
saw a watch mainly as a time-keeping device and bought mainly on the basis of price. For the first segment, Titan
offered Aurum and Royale in the gold/ jewellery watch range. They were stylish dress watches in all gold and
precious metals. The prices between Rs.20,000 & 1 lakh.

For the middle segment, Titan offered the Exacta range in stainless steel, aimed at withstanding the rigors of daily
life. There were 100 different models in the range. The price range was Rs.500-700. Titan also offered the RAGA
range for women in this segment. And, for the third segment, Titan first offered the TIMEX watches and later,
when the arrangement with Timex was terminated, the SONATA range. The price range was Rs.350-500. It was
offered in 200 different models. Titan also offered the “Dash!” range for children. In-depth segmentation helped
Titan launch segment-specific product.

Titan’s Product Pyramid

Titan’s portfolio of products spanning 3 distinct price-bands that can be defined, in general, as Popular, Mid, and
Premium. At the bottom, the emphasis is on volumes-not margins. At the top, the emphasis is on profits and
image not volumes. Obviously, profits are concentrated at the top of the pyramid, but the base acts as both an
entry-barrier and a caretaker of the company’s fixed costs. This pyramid guided the strategy of Titan. Titan was
first focused only on the premium segment of the watch market. As per the above-mentioned strategy Titan
moved in to the mass market for watches. To broaden the mass base, Titan created new segments and increasingly
focusing on segments individually. In the past few years Titan has launched at a number of initiatives focused on
specific segments (Kelly, 2006, 144).

Models in Product Line

Today titan offers the best and the biggest range to choose from offering from the scratch to the highest level in
watches. With offering such a variety of models. Titan provides variety to the customer and still is able to
segment itself creating not a niche but its ability to segment takes it a step further in terms of its product offerings.
If offers about 14 different names with about 1000 plus different varieties with a watch for literally everyone.

Differentiation
The Titan goods are developed in such a way so as to improve quality and features to enhance customer value.
This is a ideal instance of differentiation through technological leadership and product technological change. Titan
creates competitive advantage through differentiation. The first concentration is on technological leadership. They
decided to manufacture only quartz and not mechanicals, and they would set up the state-of-art plant to
manufacture watches in a wide variety of designs and prices. These products designed with the view of monopoly
go a long way to outshine titan to its competitors (Wilson, 1995, 345).

Core Competency
The TITAN core competency is on many fronts with Quality being the top runner in the list. This is the area
where a Titan beats players hollow. This is for the lower segment watches like HMT and Maxima. People when
they buy a Titan they know it’s a piece of quality and backed up by the Tata’s and the company’s strong presence
in India rather now the world the watch is one which creates absolutely no doubt at all for its quality.

In the Higher priced segments Titan is famous for pioneering innovations with innovations being in the field of
Technology, Style, Uniqueness, and having a market for every one to offer from steel to gold to diamonds. The
titan Edge a unique creation in the world only owned by Titan, The Bandhan “The Pair” the concept first started
by Titan in Indian, The Nebula “Solid Gold Watches” and a list of many more (Wilson, 1995, 345).

41
26. What is "positioning"? Discuss the various steps involved in positioning of a product.

The positioning process is important to be identified and followed by any organization which wants to implement its
marketing strategy soundly. It is a difficult task to identify and select a positioning strategy and thereby the correct
positioning process for an organization. The below article discusses the steps involved in positioning process.

There are 6 main steps in positioning process. In each of the steps, marketing research techniques can be employed to
get the necessary information. These steps are discussed as follows:

Positioning process
Table of Contents
(1) Identifying the Competitors –
A first step is to identify the competition. This step is not as simple as it seems to be. For example, ‘Pepsi ‘ might
define its competitors as follows:

(1) Other cola drinks

(2) Non-diet soft drinks
(3) All soft drinks
(4) Non-alcoholic beverages,
(5) All beverages except water

One thing, which should be clear to you, is that there is basically two types of competitors

o -Primary competitors i.e., competitors belonging to the same product class

o -Secondary competitors, those belonging to other product category.
In the above example other cola drinks are primary competitors and other drinks and beverages are secondary
competitors.

(2) Determining how the Competitors are Perceived and Evaluated –

The second step is related to determining the product positioning which is basically done so as to see, when the
competitors products are purchased by the customers. It is to see comparative view. An appropriate set of product
attributes should be chosen. The term ‘attributes’ includes not only product characteristics and consumer benefits but
also product associations such as product use or product users. In any product category, there are usually a host of
attribute possibilities.

(3) Determining the competitor’s positions –

Our next focus should be to determine how different brands (including our own brand) are positioned with respect to
the relevant attributes selected under the previous step. At this point we should be clear about what is the image that
the customer has about the various product brands? You have to see how are they positioned in respect to each other?
Which competitors are perceived as similar and which as different? This judgment can be made subjectively. However
a research can be taken up for getting the answer of these questions.

(4) Analyzing the Customer –

Now you need to analysis the customers habits and behaviour in a particular market segment. The following questions
need attention while understanding the customer and the market – (i) how is market segmented? (ii) What role does
the product class pay in the customers life style? What really motivates the customers? And what habits and behavior
patterns are relevant?

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 The segmentation question is, of course, critical. There are various approaches to segmentation but out of all benefit
segmentation is relevant here, which focuses upon the benefits or attributes that a segment believes to be important. In
order to specify that benefit segments, it is useful to highlight the role of ‘ideal object’ as a tool.

(5) Making the positioning Decision –

The above four steps provide you a useful backgrounds and are necessary to be conducted before taking any decision
about positioning. The managers can carry these steps or exercises. After these four exercises, the following guidelines
can be offered to reach a positioning decision: –
(i) An economic analysis should guide the decision.
(ii) Positioning usually implies a segmentation commitment.
(iii) If the advertising is working, the advertiser should stick to it.
(iv) Do not try to be something, your are not.
(v) In making a decision on position strategy, symbols or set of symbols must be considered.

(6) Monitoring the position –

An image objective, like an advertising objective should be measurable. It is necessary to monitor the position
overtime, for that you have variety of techniques that can be employed it can be on the basis of some test and interviews
which will help to monitor any kind of change in the image.

27. Choose a product category and identify at least three different brands and their respective positioning strategies. How
is each position communicated to the target audience?

3 Traditional Types of Product Positioning Strategies

Conventional models of product positioning strategies center on catching the eye of consumers. While there is a
wide range of options for brands to consider in product positioning, most can be broken down into one of three
categories.

Comparative:
Comparative positioning strategies work by placing products right next to other brands to highlight their
competitive edge. A typical example of this occurs when stores place a white label value brand next to a more
expensive name brand product. Often, the label includes a “compare to X brand” statement to show the consumers
that the products are similar, but the value brand offers a better price.
Differentiation:
Sometimes, the uniqueness of a product can’t be duplicated, making it ideal for a differentiation strategy. An
excellent example of a product easily differentiated is Barilla’s Pronto pasta. While the pasta aisle is competitive,
Pronto offers a unique selling point in that it requires no draining. As such, this is the primary focal point that the
brand highlights on its packaging to gain consumer attention.
Segmentation:
Sometimes, helping a product stand out requires focusing on multiple audiences with different needs, but with the
same product. Consider a simple product like Bayer aspirin. The brand offers bottles of its tablets in the pharmacy
aisle at the grocery store, but they also provide smaller, on-the-go packs for purchase at the convenience store.
Through this, they target consumers buying bottles of medication for their households for use in the future, as well
as travelers or individuals dealing with an immediate ache or pain they want to take care of right away.
leveraging the types of product positioning strategiesBrands may struggle with obtaining optimal shelf space to
leverage these types of product positioning strategies. In some cases, they may rely on packaging to help draw the
eye of consumers. However, mobile marketing can offer brands opportunities to differentiate their products in the
shopping aisle without the need to update labels.

Updating Traditional Product Positioning Strategies With Mobile Marketing

Mobile marketing can be used to guide consumers to products in the aisle even when shelf space is not optimal.
These strategies work well in conjunction with rewards programs where consumers receive points for seeking out
and interacting with participating items. When leveraged through an in-store mobile app, these programs:
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 Incentivize interaction for comparative positioning:
Brands that don’t wish to rely on discounts to compete with value brands often look to rewards programs as a way
to provide value without cutting prices. Consumers often view rewards points as having a higher value than their
simple face amount as rewards points are earned. Apps which provide a way for consumers to receive rewards
points for scanning UPCs or receipts can be an excellent way to help products stand out even against lower-cost
competitors.
Leverage mobile video to differentiate products:
Barilla partnered with Shopkick to gain attention for their new Pronto pasta product. Shopkick provided the brand
with a platform to share a mobile video announcing its unique selling point: convenience. Consumers received
kicks (aka rewards points) for viewing the mobile video which helped them to remember the product when they
went to the store. Overall, it was a success, with 50% of viewers of the video choosing to purchase the product.
These promising results are why many brands choose to contact Shopkick to enhance in-store marketing.
Offer data-driven personalization for segmentation:
Mobile apps provide a unique opportunity to cater to consumers by location, which creates an automatic kind of
personalization brands can leverage to enhance sales in a specific area. These programs work off GPS, beacons,
and other devices that push notifications to consumers when they enter a location.
Brands have many opportunities to enhance in-store marketing with mobile apps. These programs drive in-the-
moment product recognition which can be used to introduce new offerings or stimulate interest in old ones.
Pairing them with standard product positioning strategies only improves the results.

Traditional product positioning strategies can gain a significant boost from mobile marketing. By using
incentives, engaging content, and location-enabled messages, brands reach consumers when they’re about to make
purchase decisions. The primary goal of product positioning is to increase sales by boosting visibility and
Shopkick enables this without requiring optimal shelf placement.

28. Write short notes on any three:

a. Institutional Markets
b. Cognitive dissonance
c. Customer Perceived Value
d. Product positioning

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