QS 3-.

Discuss the Henry Assael model on buying decision behavior ANS- Henry Assael has come up with an explanation to analyze why consumers buy the goods they buy. He explained the relationship between the level of involvement by the consumers in the purchase of goods and services and the level at which diverse goods or services differ from one another.

Significance differences between brands

high involvement Complex buying behavior

low involvement Variety Seeking Buying Behavior

Few differences between brands

Dissonance Reducing Buying Behavior

Habitual Buying Behavior

Complex buying behavior Consumers are highly involved in a purchase and aware of significant 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 category and have more to learn. Example: personal computer.

Dissonance-reducing Sometimes, the consumer is highly involved in a purchase but sees little differences in the brands. The high involvement is based on the fact that the purchase is expensive, infrequent, and risky.

Habitual buying behavior 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 potato chips.

B. Explain the five stages of Adoption Process.

Ans- The five stages of adoption process are:A large number of factors are examined to know the reaction of consumers regarding adoption of a new product. The process of accepting new product ideas by individual customers is popularly known as adoption process. The spread of this innovation across the society is known as diffusion process. Diffusion is the process by which the acceptance of an innovation (a new product, a new service, new ideas, or new practice) is spread by communication (mass media, sales people, or informal conversations) to the members of the social systems. The key elements of diffusion process include the degree of innovativeness of the product, the channels of communication, the social system, and the time required for innovation. 1. Awareness During the first stage of adoption process, the product innovation is explained to the consumers. This process gives information about the new product or service. 2. Interest When consumers develop an interest in the product or product category, they search for information about how the innovation can benefit them. 3. Evaluation The evaluation stage represents a kind of mental trial of the product innovation. Only if the consumers evaluation of the innovation is satisfactory, they will actually try the product. In case the evaluation is unsatisfactory, the product is automatically rejected. 4. Trial In 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. 5. Adoption In this stage, consumers decide to make full and regular use of the product.

Q.4. Describe the components of the micro environment of marketing. Ans- Micro environment is the immediate environment in which marketers have to take decisions. The players of this environment are called actors as they have a direct bearing on the marketing decisions. This environment identifies the way a company does business and against whom it stands in the market. The company Some company factors that affect the marketing decisions are: Culture and value system Organisational 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 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

 Mission and objectives The mission and objectives of the company guide the priorities, direction of development, business philosophy, and business policy. Management structure and nature Structure is the manner in which the tasks and sub-tasks of the organization are related. Structure is concerned with the hierarchical relationship and the relationship between the management of different functional areas like the structure of the top management and the pattern of shareholding. Human resource This concerns factors like manpower planning, recruitment and selection, compensation, communication, and appraisal intermediaries .

Intermediaries 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 Competitors Success 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 growth in refrigerator industry, Godrej as a brand is not growing as fast as its competitors. Suppliers -Increase in the price of raw materials will have a bang on effect on the marketing mix strategy of an organization. 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 organization. Customers Organizations exist because of customers. No customer means, no business. Organizations survival depends 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 systems Ans- MIS supplies three types of information, which are: Monitoring information Recurrent information Customised information The Different types of marketing information in detail areMonitoring 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 research reports. Data are captured to monitor changes and trends related to marketing situation. Some of these data 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, the trial balance, etc. In MIS, recurrent information is the data that MIS supplies at a weekly, monthly, quarterly, or annual 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 specific requirements related to a marketing problem or any particular data requested by a manager. B. Discuss the different components of MIS

Internal record systems Internal record systems are available within the company across various departments and provide relevant, routine 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 placed 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 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. It involves problem-solving technology 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 help marketing managers to design, collect, analyse, and report data and findings 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.

A marketing mix can be referred to as a planned mix of the controllable elements of a product's marketing plan, commonly termed as 4Ps: product, price, place, and promotion. These four elements are adjusted until the right combination that serves the needs of the customers, while generating optimum income for the company is found. constituents of a marketing mix namely product, price, place, promotion (the traditional 4Ps), people, process, and physical evidence (the additional 3Ps). Product In marketing mix, the product or service is the most important element. Customers acquire products for a singular reason that they are perceived as the means to satisfy their needs and wants. According to Philip Kotler, A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want. In effect, according to this definition, products include physical products, services, persons, places, organisations, and ideas. Products have various attributes such as quality, variety, design, brand, packaging, services, and warranties that can be manipulated depending on what the target market wants. Price The second element is the price, which impacts the volume of sales. It is a value that will purchase a specific quantity, weight, or other measure of a product. For example, you buy a packet of chips which is net 10grams in weight for ` 10, this value ` 10 denotes the price of the product. Price is the only marketing mix variable that can be altered quickly. Price directly influences the development of marketing strategy as it is a major factor that influences the assessment of value obtained by customers. Place This is another key marketing mix tool, which encompasses the various activities the company attempts to make the product available to the target customers. Place mix deals with the physical distribution of products at the right time and right place. For example, a customer usually purchases toiletries from nearby retail stores. So, toiletry marketers must ensure that their products are available at almost every nook and corner store. Distribution channels may also be used in marketing strategy to differentiate a product from its competitors. For example, Amway distributes its products using direct distribution channel while HUL uses multi-channel distribution (through retailers, wholesalers, online sources, etc.) Promotion This includes the methods to communicate the features and benefits of the products or services to its target customers. Some common methods include advertising, sales promotion, direct selling,

public relations, and direct marketing. For example, Toyota promotes its brands by advertising, sales promotions, public relations, sponsorships, etc.