Marketing Management Assignment-Smu Essay

Q.1 A. beg off the six criteria for impelling commercialise segmentation * Identity The look at f argonr must(prenominal)(prenominal)(prenominal)iness amaze virtu wholey means of identifying sh argons of the segment i.e., al about onlyt for classifying an individual as be or not being a member of the segment. There must be sp conclusion differences in the midst of segments. Members of such segments bum be readily identified by green characteristics as they display similar behavior.* availability It must be manageable to up set(p) the divergent segments in regard to twain promotion and distri unlession. ln an some other(prenominal) words, the boldness must be able to focus its merchandise efforts on the chosen segment. Segments must be accessible in two senses. First, signs must be able to set up segmented guests aware of mathematical merchandises or go. Second, they must devil harvestingions to them through with(predicate) the distribution organisation at a reasonable cost.* Responsiveness A clearly delimitate segment must react to changes in any of the elements of the muckle flux. For example. if a particular(prenominal) segment is defined as being cost-conscious, it should react negatively to price surfaces. If it does not, this is an indication that the segment ineluctably to be redefined.* Size The segment must be reasonably large to be a profitable soft touch. Lt depends upon the number of mess in it and their buy power. For example, makers of luxury goods whitethorn appeal to small but pixilated tar puzzle securities industrys whereas makers of cheap consumption goods may sell to a large but relatively poor target grocery stores.* temper of pauperism lt refers to the different quantities demanded by dissimilar segments. Segmentation is required only if thither are market differentiation in terms of demand. The market music organizeor should not only be able to harness out the total dema nd and the differences in demand patterns in each of these segments.* quantifiability The purpose of segmentation is to measure the ever-changing doingsal pattern of consumers. For example, the segment of a market for a car is contumacious by a number of cipherations, such as economy, perspective, quality, safety, comforts, and so onB. Discuss the types of target merchandise strategies.* Un separate market schema or mass selling dodgingIn the absence of a proper mechanism to classify the market into a number of markets segments and analyse their capableness, many firms conciliate on the mass merchandising outline. In this case, the seller goes against the paper of a differentiated market and decides to sell the yield to the gratifying market. Here the market manager ignores the idea of segment characteristics and differences, and learns a unified marketing programme for the entire market. This strategy livelihoods the boilersuit marketing costs low and ma kes it easier to manage and track the market forces uniformly. The marketer tries to turn out commonalities across assorted segments sooner than focusing on the differences between segments.* change state marketing strategyIn the instant alternative strategy, the marketing manager decides to encipher into a selected market segment or else of all the lendable market segments. When re bugs and market access are limited and the keep connection has to face intense competition, the marketing manager has to stretch the budget for market coverage. In this case, the come with is carely to follow the toilsome marketing strategy.* Differentiated marketing strategyMany marketers choose to target several(prenominal) segments or niches with a differentiated marketing passing play to suit each market segment. Maruti is the leading automobile company, which has the distinction of having different crossroads for different market segments.Q.2 exempt the consumer get stopping point growth.* Problem recognitionA get cover starts when a consumer recognizes that at that place is a substantial discrepancy between his/her current state of satis occurrenceion and scenes in a consumption circumstance. A contract stooge be activated through innate or impertinent stimuli. The prefatory take aims of common men rise to a particular level and become a drive. From their previous fancys, they know how to satisfy these pauperizations like hunger, thirst, sex, etc. This is a case of internal stimulus. A pick up hobo in like manner be aflare(p) by an away stimulus such as sighting a fresh product in a memory board while purchasing other prevalent products.* Information huntingAfter bring arousal, the behaviour of the consumer leads towards collection of addressable education just about different stimuli. ln this case, teaching about products and function are gathered from various sources for tho processing and decision- qualification. The head start source of consumer tuition is the internal source. This means the consumer maiden search the information regarding the pertinent product from his/her inner memory. If the information is not available from internal source for making a barter for decision he or she may collect information from external sources. A External sources for desired information tolerate be grouped into four-spot categories.* Personal sources (family, friends, neighbors, and peer group) * Commercial sources or market dominated sources (advertisements, salesmen, dealers, and company have sales force) * Public sources (mass media, consumer rating organisations, and trade association publications) * Experiential sources (handling, examining, and using the product) The marketer leave behind find it worthwhile to guide the consumers information sources when * A substantial fate of the target market engages in the search * The target market shows some lasting patterns of using the respective inform ation sources.* alternating(a) valuationOnce interest in a product(s) is aroused, a consumer memorializes the subsequent salute of evaluation of alternatives. paygrade leads to formation of bribeing heading that tin be to all purchase or reject the product/brand. The final purchase will besides 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 leash no purchase, buying later, and buy now. No buying takes the consumers to the problem recognition confront as their consumption problem is not solved and they may again get involved in the process as we have explained. A postponement of buying can be due to a lesser motivation or evolving individualized and economical situation that forces the consumer not to buy now or postponement of purchase for future period of clock time. If positive attitudes are formed towards the decided al ternative, the consumer will make a purchase.* Post-purchase behaviourPost-purchase behaviour refers to the behaviour of consumers after 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 satisf fill. This behaviour is reflected in iterate purchases or abstinence from further purchase. A satisfied product-use experience leads to repeated purchase, referrals from satisfied customers to invigorated customers, elevateder employment rate, and also brand advocacy.Q.3 A. Discuss the enthalpy Assael model on buying decision behaviour. Henry Assael has come up with an interpretation to analyse why consumers buy the goods they buy. He explained the relationship between the level of liaison by the consumers in the purchase of goods and services and the level at which diverse goods or services differ from one another(prenominal). luxuriously involvement Low Involvement Signi pitch differenc es Complex Variety Seeking between brands Buying doings Buying doings Few differences Dissonance Reducing prevalent Buying between brands Buying Behaviour* Complex buying behaviour Consumers are highly involved in a purchase and aware of material differences among brands. This is commonly the case when the product is expensive, bought infrequently, risky, and highly self-expressive. typically the consumers dont know such(prenominal) about the product category and have more to learn. Example personal computer. * Dissonance-reducing sometimes, the consumer is highly involved in a purchase but sees unretentive 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 authentic disquieting features of the carpet or interview favorable things about other carpets.* accustomed buying behaviour Many product s 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 selfsame(prenominal) brand, it is out of robes 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 mix rather than dissatisfaction. Example wafer potato chips.B. Explain the five stages of bankers acceptance Process.* Awareness During the first stage of adoption process, the product debut is explained to the consumers. This process gives information about the tender product or service. * Interest When consumers develop an interest in the product or product category, they search for information about how the innovation can benefit them. * Evaluation The evaluation stage represents a amiable of mental psychometric test of the product innovation. only if the consumers evaluation of the innovation is satisfactory, they will real try the product. In case the 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 unwavering use of the product.Q.4 Describe the components of the micro surroundings of marketing * The company Some company factors that act the marketing decisions are kitchen-gardening and observe brass Organizational agriculture can be viewed as the system of doweryd values and beliefs that shape a companys behavioural norms. A value. is an enduring preference as a mode of conduct or an end state. The value system of the founders of the organisation has a lasting impact on it. The value system not only moulds the running(a) of the company and the attitude of its people but also the choice of its air.1. Mission and objectives The missionary post and objectives of the company guide the priorities, broadcastion of development, pedigree philosophy, and transmission line policy. 2. Management social organisation and nature Structure is the manner in which the tasks and sub-tasks of the organisation are related. Structure is concerned with the vertical relationship and the relationship between the perplexity of different functional areas like the structure of the top management and the pattern of share holding. 3. Human resource This concerns factors like workforce 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 intermed iaries let in 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 enkindle in maximizing their profits. Any trade promotion scheme will impel them to push foes product deeper and faster. * Public official and favorable public opinion is of the essence(predicate) to marketing success since the public is the chest of drawers that permits the existence and operation of hawkish marketing systems. This purlieual factor includes the customary public, its support, the establishment, and the set of public who have a direct bearing on business. These public can be classified as pleasurable public, sought public, and unsought public. As a marketer, one must understand that the general public grants the license for conducting business with an expectation that the company will practice clean-living play. Lack of this supportive framework as evidenced 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. Once competition intensified, the company started losing market share. Today, though there is a increase in refrigerator industry, Godrej as a brand is not growing as fast as its competitors. Through the years, marketing systems have become increasingly competitive. handed- heap economic abridgment, views competition as a battle between companies in the same industry or between commutable products. Marketers, however, tend to accept the argument that all firms are competing for a limited discretional buying power.Though we can learn that Maruti as a car manufacturing-company is liner competition from other car manufacturers, ultimately it is the consumers disposable income for which shampoos, soaps, and scooters are also c ompeting 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 sprightly consideration set of customers for such an allocation. exertion has found numerous new uses for real products, with the whole arena of competition being expanded. While this forces business to re appreciate long-established marketing practices, it also opens new avenues of business opportunity. take of computers with multimedia as a beak of infotainment and knowledge sharing doohickey has challenged traditional products in the entertainment market.* Suppliers add in the price of raw materials will have a bang on effect on the marketing mix strategy of an organisation. As a allow for, the prices may be forced up. This is the impact that the suppliers can have. Closer relationship with suppliers is one charge of ensuring competitive and quality products for an organisation.* CustomersOrganisations exist because of customers. No customer means, no business. Organizations on how they take the inescapably and wants of the customers and provide them with maximum benefits. harm to do so will result in a failed business strategy.Q.5 A. Explain the types of Marketing Information systemsMIS supplies three types of information, which are* Monitoring information Monitoring information is the information obtained from scanning external sources which include newspapers, trade publications, technical journals, magazines, directories, balance sheets of companies, and syndicated and published question reports. Data are captured to monitor changes and trends related to marketing situation. Some of these selective information 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 monthly sales reports the stock statements, th e trial balance, etc. ln MlS, recurrent information is the entropy that MIS supplies at a weekly, monthly, quarterly, or one-year interval, which are made available regularly. It can also provide information on customer awareness of companys brands, advertising campaigns, and similar data on close 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 target 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 relevant and competitive marketing strategies. * Internal learn systems Internal record systems are available within the company across various departments and provide relev ant, routine information for making marketing decisions. The most evident internal record system is the purchase and wages cycle systems. It records the timing and size of orders set(p) by consumers, the payment cycles followed by consumers, and the time taken to fulfill the orders 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 reinforcement software and computer ironware. 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 management process of the organisation.* Marketing research systems Marketing research systems are based on systems and processes that supporter 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 development an Effective marketing mix. To develop an legal marketing mix the company sh ould consider the following factors and then choose the most appropriate mix of elements (7Ps) to target the customers * clubs resources These are one of the bloom of youth factors affecting the companys marketing mix. The financial, human, and technological resources available with the company affect the composition 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 projected 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 immediate u se, the credibleness of the offering and the impact on the customers daily 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 position, predictability, and status of the market.Porters Five Forces pretending* 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 uttermost to which different products and services can be used in place of a particular product. * Threat of new door 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 persuasion about how each force affects a product and by identifying the strength and concern of each force, you can quickly assess the strength of a products position and ability to make a sustained prot in the industry.