Marketing Management Assignment-Smu Essay

Q.1 A. Explain the six criteria for strong food mart section * Identity The trade manager moldiness decl ar approximately bureau of identifying members of the fraction i.e., m any(prenominal) basis for classifying an individual as being or not being a member of the surgical incision. There moldiness be clear differences mingled with segments. Members of such segments sess be readily determine by common characteristics as they display similar behavior.* Accessibility It must be possible to reach the un manage segments in regard to some(prenominal) forwarding and distribution. ln some early(a) words, the governing body must be able to direction its merchandise efforts on the chosen segment. Segments must be accessible in two senses. First, theaters must be able to provoke segmented customers aw be of reapings or go. Second, they must get carrefours to them through the distribution system at a reasonable cost.* Responsiveness A clearly defined segment must react to changes in any of the elements of the grocerying desegregate. For example. if a crabby segment is defined as being cost-conscious, it should react negatively to monetary value initiates. If it does not, this is an indication that the segment necessarily to be redefined.* Size The segment must be reasonably large to be a profitable betoken. Lt depends upon the derive of people in it and their purchase causation. For example, makers of luxury goods whitethorn appeal to tenuous but wealthy target markets whereas makers of cheap using up goods may bewray to a large but relatively poor target markets.* character of demand lt refers to the unalike quantities demanded by various segments. Segmentation is required just now if there atomic number 18 market differentiation in terms of demand. The market manager should not notwithstanding be able to find taboo the total demand and the differences in demand patterns in each of these segments.* measur talent The pur pose of segmentation is to measure the changing deportmental pattern of consumers. For example, the segment of a market for a car is determined by a number of considerations, such as economy, status, quality, safety, comforts, etc.B. Discuss the types of target market strategies.* Undifferentiated merchandising bulgeline or great deal merchandise schemeIn the absence of a proper mechanism to classify the market into a number of markets segments and analyse their potential, many firms decide on the mass marketing strategy. In this case, the marketer goes against the thought process of a differentiated market and decides to sell the harvest-festival to the consentient market. Here the marketing manager ignores the idea of segment characteristics and differences, and develops a unified marketing programme for the entire market. This strategy keeps the overall marketing costs low and makes it easier to manage and track the market forces uniformly. The marketer tries to find o ut commonalities across various segments rather than centre on the differences in the midst of segments.* Concentrated marketing strategyIn the secondly alternative strategy, the marketing manager decides to enter into a selected market segment instead of all the useable market segments. When re witnesss and market access are confine and the company has to face intense competition, the marketing manager has to gallop the budget for market coverage. In this case, the company is likely to follow the tough marketing strategy.* Differentiated marketing strategyMany marketers require to target several segments or niches with a differentiated marketing offer to belong each market segment. Maruti is the leading automobile company, which has the distinction of having different products for different market segments.Q.2 Explain the consumer acquire termination process.* Problem recognitionA acquire process starts when a consumer recognizes that there is a substantial variablenes s between his/her current state of satisfaction and expectations in a consumption situation. A need asshole be activated through interior or external stimuli. The basic involve of common men rise to a particular train and become a drive. From their previous experiences, they get laid how to satisfy these needs like hunger, thirst, sex, etc. This is a case of intimate stimulus. A need can in like manner be aroused by an external stimulus such as sighting a saucily product in a shop while purchasing other usual products.* Information searchAfter need arousal, the behaviour of the consumer leads towards appeal of available education about various stimuli. ln this case, development about products and go are gathered from various ascendants for further processing and decision-making. The first source of consumer tuition is the internal source. This means the consumer first search the information regarding the pertinent product from his/her inner memory. If the information is not available from internal source for making a grease ones palms decision he or she may collect information from external sources. A External sources for desired information can be grouped into four categories.* Personal sources (family, friends, neighbors, and peer group) * commercial-grade sources or market dominated sources (advertisements, gross revenuemen, dealers, and company owned sales force) * familiar sources (mass media, consumer rating organisations, and trade association publications) * Experiential sources (handling, examining, and using the product) The marketer pull up stakes find it worthwhile to study the consumers information sources when * A substantial role of the target market engages in the search * The target market shows some stable patterns of using the respective information sources.* Alternative military rating formerly interest in a product(s) is aroused, a consumer enters the subsequent stage of evaluation of alternatives. Evaluation leads to formation of buying intention that can be to both purchase or reject the product/ discolouration. The final purchase pull up stakes however depend on the strength of the positive-intention, which is the intention to buy.* Purchase decisionFinally the consumer arrives at a purchase decision. Purchase decisions can be any one of the trey no buying, buying later, and buy now. No buying takes the consumers to the riddle recognition stage as their consumption problem is not solved and they may again get involved in the process as we have explained. A grasp of buying can be due to a lesser motivation or evolving personalised and economic situation that forces the consumer not to buy now or postponement of purchase for future period of time. If positive attitudes are formed towards the distinct alternative, the consumer event make a purchase.* Post-purchase behaviourPost-purchase behaviour refers to the behaviour of consumers by and by their commitment to a product has been made . It originates out of consumers experience regarding the use of the product and is indicated in terms of satisfaction. This behaviour is reflected in repeated purchases or self-denial from further purchase. A satisfied product-use experience leads to repeated purchase, referrals from satisfied customers to bare-ass customers, higher usage rate, and as well brand advocacy.Q.3 A. Discuss the Henry Assael toughie on buying decision behaviour. Henry Assael has come up with an story to analyse why consumers buy the goods they buy. He explained the relationship between the level of interest group by the consumers in the purchase of goods and services and the level at which diverse goods or services differ from one another. High matter Low Involvement Signicant differences Complex Variety Seeking between brands Buying Behaviour Buying Behaviour Few differences Dissonance decrease Habitual Buying between brands Buying Behaviour* Complex buying behaviour Consumers are highly involv ed in a purchase and aware of epoch-making differences among brands. This is usually the case when the product is expensive, bought infrequently, risky, and highly self-expressive. typically the consumers dont know much about the product kinsfolk and have more to learn. Example personal computer. * Dissonance-reducing sometimes, the consumer is highly involved in a purchase but assembles little differences in the brands. The high involvement is based on the fact that the purchase is expensive, infrequent, and risky. Example carpet. After purchasing the carpet, consumers might experience dissonance that stems from noticing certain disquieting features of the carpet or hearing favorable things about other carpets.* Habitual buying behaviour Many products are bought under conditions flow consumer involvement and the absence of significant brand differences. Considering salt, consumers have little involvement in this product category. They go to the store and reach for a brand. If they keep reaching for the same brand, it is out of habit and not strong brand loyalty. * Variety-seeking buying Some buying situations are characterized by low consumer involvement but significant brand differences. Here consumers often do a lot of brand switching. Consumers do the brand switching for the sake of variety rather than dissatisfaction. Example wafer tater chips.B. Explain the five stages of Adoption Process.* Awareness During the first stage of word meaning process, the product innovation is explained to the consumers. This process gives information about the red-hot product or service. * Interest When consumers develop an interest in the product or product category, they search for information about how the innovation can returns them. * Evaluation The evaluation stage represents a kind of mental mental test of the product innovation. Only if the consumers evaluation of the innovation is satis ingredienty, they forget actually attack the product. In case t he evaluation is unsatisfactory, the product is automatically rejected. * TriaI- ln this stage- consumers use the product on a limited basis. Their experience with the product provides them with the critical information that they need to adopt or reject it. * Adoption -In this stage, consumers decide to make full and regular use of the product.Q.4 show the components of the micro environment of marketing * The company Some company factors that affect the marketing decisions are kitchen-gardening and value system Organizational culture can be viewed as the system of shared values and beliefs that shape a companys behavioural norms. A value. is an enduring preference as a stylus of conduct or an end state. The value system of the founders of the organisation has a lasting wedge on it. The value system not only influences the working of the company and the attitude of its people but also the excerption of its furrow.1. Mission and objectives The mission and objectives of the co mpany guide the priorities, direction of development, business philosophy, and business policy. 2. Management structure and nature Structure is the manner in which the tasks and sub-tasks of the organisation are related. Structure is concerned with the hierarchical relationship and the relationship between the counseling of different functional areas like the structure of the top management and the pattern of share holding. 3. Human resource This concerns factors like manpower planning, recruitment and selection, compensation, communication, and appraisal.* Intermediariesintermediaries are independent business units and they carry the companys products and services to the customers. Prominent intermediaries include wholesalers, retailers, merchants, selling agents, brokers, etc. Their objective of being in business is different than being in a firm, so the intermediaries will be interested in maximizing their profits. Any trade promotion scheme will motivate them to push compet itors product deeper and faster. * Public autocratic and favorable public opinion is crucial to marketing success since the public is the authority that permits the existence and operation of competitive marketing systems. This environmental factor includes the general public, its support, the government, and the differentiate of public who have a direct pushchair on business. These public can be classified as invite public, sought public, and unsought public. As a marketer, one must sympathise that the general public grants the license for conducting business with an expectation that the company will practice fair play. Lack of this supportive framework as attest by declining sales or adverse public opinion can lead to eventual failure of the firm as well as the marketing system. * CompetitorsSuccess or failure of an offer largely depends on how competitors react to the companys offer. Godrej was a successful refrigerator manufacturer. at one time competition intensified, the company started losing market share. Today, though there is a evolution in refrigerator industry, Godrej as a brand is not exploitation as fast as its competitors. Through the years, marketing systems have become increasingly competitive. Traditional economic summary, views competition as a skirmish between companies in the same industry or between synonymous products. Marketers, however, tend to accept the argument that all firms are competing for a limited discretionary buying power.Though we can say that Maruti as a car manufacturing-company is facing competition from other car manufacturers, ultimately it is the consumers disposable income for which shampoos, soaps, and scooters are also competing with Maruti. A customer is expected to share his disposable income optimally and in the process a category also competes with another category to be in the active consideration set of customers for such an allocation. Industry has found numerous bleak uses for existing products, with the whole arena of competition being expanded. While this forces business to reassess long-established marketing practices, it also opens new avenues of business opportunity. Emergence of computers with multimedia as a tool of infotainment and knowledge sharing device has challenged traditional products in the entertainment market.* SuppliersIncrease in the price of raw materials will have a bang on effect on the marketing mix strategy of an organisation. As a result, the prices may be forced up. This is the impact that the suppliers can have. Closer relationship with suppliers is one way of ensuring competitive and quality products for an organisation.* CustomersOrganisations exist because of customers. No customer means, no business. Organizations on how they meet the needs and wants of the customers and provide them with maximum benefits. Failure to do so will result in a failed business strategy.Q.5 A. Explain the types of Marketing Information systemsMIS supplies three ty pes of information, which are* Monitoring information Monitoring information is the information obtained from examine external sources which include newspapers, trade publications, technical journals, magazines, directories, balance sheets of companies, and syndicated and published explore reports. Data are captured to monitor changes and trends related to marketing situation. Some of these info can be purchased at a price from commercial sources such as market research agencies or from government sources. * Recurrent information Recurrent information is the information that is generated at regular intervals like periodic sales reports the stock statements, the trial balance, etc. ln MlS, recurrent information is the selective information that MIS supplies at a weekly, monthly, quarterly, or annual interval, which are made available regularly. It can also provide information on customer sensory faculty of companys brands, advertising campaigns, and similar information on sk inny competitors. * Customized information Customized information is also called problem-related, which is developed in response to some specic requirements related to a marketing problem or any particular data requested by a manager.B. Discuss the different components of MISThe overall Objective of an Ml IS to provide inputs from marketing environmental factors like target markets, marketing channels, competitors, consumers, and other forces for creating, changing, and modifying marketing decisions in the formulation of applicable and competitive marketing strategies. * Internal criminal record systems Internal record systems are available within the company across various departments and provide relevant, bend information for making marketing decisions. The most evident internal record system is the purchase and payment cycle systems. It records the timing and size of orders hardened by consumers, the payment cycles followed by consumers, and the time taken to fulfill the or ders in the shortest possible time. * Marketing intelligence system A marketing intelligence system is the system of collecting and collating data. This system tries to capture relevant data from the external environment. It collects and manages data from the external environment about the competitors moves, government regulations, and other relevant information having a direct impact on the marketing environment of the firm.*Analytical marketing systems Analytical marketing systems are also known as Marketing Decision Support Systems (MDSS). A MDSS is a coordinated collection of data, systems, tools, and techniques with supporting software and hardware. Using this collection, an organisation gathers and interprets relevant information from business and environment and turns it into a basis for marketing action. lt involves problem-solving engineering consisting of people, knowledge, software, and hardware integrated through the information technology platform into the sales mana gement process of the organisation.* Marketing research systems Marketing research systems are based on systems and processes that help marketing managers to design, collect, analyse, and report data and ndings relevant to a specific marketing situation facing the company. It also involves analysis of information, which includes a coordinated collection of data, systems, tools, and techniques with supporting software, and hardware by which an organisation gathers and interprets the relevant data and turns it into a basis for marketing action and tactics.Q.6 Describe the factors to be considered while developing an Effective marketing mix. To develop an effective marketing mix the company should consider the following factors and accordingly choose the most appropriate mix of elements (7Ps) to target the customers * Companys resources These are one of the prime factors affecting the companys marketing mix. The financial, human, and technical resources available with the company af fect the piece of the marketing mix. The firm needs to conduct a Strength, Weakness, Opportunity, and Threat (SWOT) analysis for the business unit.* Demographics It implies to the changes in the composition of the market, the demand of the population, the opportunities in the country, etc. that affect the marketing mix. Current and intercommunicate economic conditions It connotes the economic factors like inflation, employment, taxes, and other economic factors that influence marketing mix decisions. * Market potential Analysis of market potential for new products considers market growth, prospects need for your offering, the benets of the offering the number of barriers to spry use, the credibility of the offering and the impact on the customers routine operations. * Competitors They are important considerations that affect the marketing mix of a firm as the potential for competitive retaliation is based on the competitors resources, commitment to the industry, cash positio n, predictability, and status of the market.Porters five-spot Forces Model* Supplier power- The power of suppliers to drive up the prices of inputs. * Buyer power- The power of customers to drive down products prices. * Competitive rivalry The strength of competition in the industry. * Threat of substitution The extent to which different products and services can be used in place of a particular product. * Threat of new entry The ease with which new competitors can enter the market if they see that a product is making good prot and then drive your prices down. By thinking about how each force affects a product and by identifying the strength and direction of each force, you can chop-chop assess the strength of a products position and ability to make a sustained prot in the industry.