Explain the diIIerent micro-environmental Iorces with examples. (6 marks) b. Mention the diIerent ad appeals with suitable examples. (4 marks) each question carries 10 marks. Answer all the questions.
Explain the diIIerent micro-environmental Iorces with examples. (6 marks) b. Mention the diIerent ad appeals with suitable examples. (4 marks) each question carries 10 marks. Answer all the questions.
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Explain the diIIerent micro-environmental Iorces with examples. (6 marks) b. Mention the diIerent ad appeals with suitable examples. (4 marks) each question carries 10 marks. Answer all the questions.
Direitos autorais:
Attribution Non-Commercial (BY-NC)
Formatos disponíveis
Baixe no formato DOCX, PDF, TXT ou leia online no Scribd
Master of Business Administration - MBA Semester 2
MB0046 Marketing Management - 4 Credits
Book ID: B1135) Assignment Set- 1 60 Marks
Note: Each question carries 10 Marks. Answer all the questions.
Q.1 a. Explain the diIIerent micro-environmental Iorces with examples. (6 marks) b. Mention the diIIerent ad appeals with suitable examples. (4 marks)
Q.2 What are the diIIerent market entry strategies iI a company wants to enter international markets? (10 marks)
Q.3. a. State the meaning oI Product liIe cycle and explain the diIIerent stages involved in it. (8 marks) b. DeIine Customer Relationship Management. (2 marks)
Q.4. a. You are a sales manager in ABC Iirm. You have taken some interviews and shortlisted a Iew candidates. How will you select the right candidate Ior the sales job? (5 marks) b. As a consumer, what are the steps you will undertake beIore you decide to buy a car? (5 marks)
Q. 5 a. What are the Ieatures oI Business markets? How is it diIIerent Irom consumer markets? (5 marks) b. List out the 5 important requisites oI an eIIective segmentation by giving suitable examples. (5 marks)
Q. 6. Explain brieIly what are the several processes involved in new product development. (10 marks)
A) Forces In the mIcro envIronment |arketIng department alone cannot satIsfy all the needs of customer. Therefore It Is essentIal to Integrate the functIons of supplIers, publIcs, Internal departments and IntermedIarIes In creatIng the value to the customer. These forces are known as organIzatIon's mIcro envIronment.
|IcroenvIronment: The forces whIch are very close to company and have Impact on value creatIon and customer servIce.
%he Company Femember,In the prevIous unIt we dIscussed about marketIng mIx and marketIng plan. Safe Express, a leader In the supply chaIn management solutIon wants to hold Its number one posItIon In the US S 90 bIllIon ndIan logIstIcs market. The company plans to expand Its servIce areas In the comIng months. To meet the targets of the marketIng plan, other departments of safe express also expandIng theIr horIzon. The Company Is comIng out wIth logIstIcs parks In dIfferent cItIes; plans to hold seven mIllIon square feet of warehousIng capacIty In the next three years and Invest Fs 10 bIllIon In three years to meet those targets. The above example shows that the company's marketIng plan should be supported by the other functIonal departments also.
IntermedIarIes |arketIng IntermedIarIes: These are fIrms whIch dIstrIbute and sell the goods of the company to the consumer.|arketIng IntermedIarIes play an Important role In the dIstrIbutIon, sellIng and promotIng the goods and servIces. StockIng and delIverIng, bulk breakIng, and sellIng the goods and servIces to customer are some of the major functIons carrIed out by the mIddlemen. FetaIlers, wholesalers, agents, brokers, jobbers and carry forward agents are few of the IntermedIarIes. FetaIlers are fInal lInk between the company and the customers. TheIr role In the marketIng of product Is IncreasIng every day.
PubIIcs These are mIcroenvIronment groups, whIch help a company to generate the fInancIal resources, creatIng the Image, examInIng the companIes' polIcy and developIng the attItude towards the product.
We can IdentIfy sIx types of publIcs 1. FInancIaI pubIIcs Influence the company's abIlIty to obtaIn funds. For example, 8anks, Investment houses and stockholders are the major fInancIal publIcs. 2. edIa pubIIcs carry news and features about the company e.g. 0eccan Herald
AdvertIsement regulatIon agencIes, telecom reguIatIon agency( TFA), and Insurance regulatIon agency(F0A) of the government
4 CItIzen actIon groups: Formed by the consumer or envIronmental groups. For example, people for ethIcal treatment of anImals (PETA) or Creenpeace.
eneraI pubIIcs: A company should be concerned towards general publIcs' attItude towards Its products and servIces.
InternaI pubIIcs: Employees who help In creatIng proper Image for the company through word of mouth.
CompetItors A company should monItor Its ImmedIate competItors as Its sale wIll be affected by the nature and IntensIty of the competItors. The sale of Coca cola wIll be affected by PepsI cola, or 8rItannIa cheese by Amul cheese. |Ichael Porter, the author of CompetItIve Advantage of NatIons suggested that, In addItIon to dIrect competItIon, companIes should also consIder competItIon from substItutes. n addItIon to exIstIng competItors, the potentIal competItors should also be antIcIpated. CompetItIon may arIse from a. Small fIrms wIth low overheads producIng duplIcates. b. FIrms whIch dIversIfy Into certaIn products by merely beIng In the partIcular Industry for e.g. PepsI entered the snacks sector competIng wIth pure snack producers lIke HaldIram. c. FIrms whIch expand In the same vertIcal for e.g. Codrej whIch manufactured offIce furnIture and steel cupboards went on to the entIre range of home furnIture thereby gIvIng competItIon to pure home furnIture makers. How do companIes or enterprIses survIve and grow under the above cIrcumstances. WhIle we shall study thIs In detaIl later, a sImple step could be that the product should be posItIoned dIfferently and the company should be able to provIde better servIces.
SuppIIers There are many kInds of supplIers to an enterprIse or an InstItutIon. There are typIcally, raw materIal supplIers, energy and fuel supplIers, labour supplIers, offIce Item supplIers and so on. SupplIers are the fIrst lInk In the entIre supply chaIn of the company. Hence any problems or cost escalatIon In thIs stage wIll have dIrect effect on the company. |any companIes adopted supplIer relatIon management system to manage them well. SupplIers are a source of competItIon to fIrms today. For a large retaIl store lIke FelIance FetaIl or 8Ig 8azaar the supplIers play the most sIgnIfIcant role In both cost and tIme. TImely supplIes reduce stockIng of goods and blockIng of space, at the same tIme meet customer requIrements.
n a globalIsed scenarIo supplIers are even more Important as competItIon goes up manIfold! The TamIl Nadu State ElectrIcIty 8oard Imports coal from New Zealand despIte huge coal reserves In ndIa. For 7olvo, ndIa Is a manufacturIng hub.
Customers A company may sell theIr products dIrectly to the customer or use marketIng IntermedIarIes to reach them. 0Irect or IndIrect marketIng depends on what type of markets Company serves. Cenerally we can dIvIde the markets Into fIve dIfferent categorIes. They are
a. Consumer market. b. 8usIness market c. Feseller market d. Covernment market and e. nternatIonal market
You wIll come to know about these fIve dIfferent markets from the followIng example. |FF, a tyre company sells Its product dIrectly to consumer (In case of urgency, customer purchases dIrectly from showroom) I.e. operates In consumer market. t operates In busIness markets by sellIng tyres to companIes lIke |arutI Udyog lImIted. |FF also sells TYFEs to 8|TC and KSFTC, transport organIzatIons of Karnataka government.
ns:- |essage content must have any one of the followIng appeals
EmotIonaI appeaI: PosItIve emotIonal appeal or negatIve emotIonal appeals are strong tools used to IntensIfy the purchasIng actIvIty of the customer. PosItIve emotIons lIke love, prIde, joy and humor are used In the message. FollowIng are the advertIsement where such attrIbutes of posItIve emotIons used.
The negatIve emotIons lIke fear guIlt and shame are also used In the advertIsement to attract the customer.#,943, ,550,8 hIghlIght on the desIred benefIts about the products. They hIghlIght qualIty, economy value or performance of the product.
oraI appeaI: These are concerned towards publIc health or envIronment or socIal responsIbIlIty. For example, Shell lubrIcants show Its commItment towards envIronment In theIr advertIsements
CoIors used: Saffron, Yellow, Fed, Watermark brown, 8lack, 8rown. SIze: J.5Inch breadth* 4.2 Inch length Shape: Fectangle Words: StraIght out of the pack and Into your mouth, that's the usual style of eatIng HaldIram's Namkeen. 8ut now, there's a whole new way of doIng It! A blend of our delIcIous namkeen wIth a dash of ImagInatIon, presented In a lIst of yummy recIpes, just for you. 8ut where do you get these FecIpe FemIxes: Just wrIte to us at the address gIven below and we'll send you a FecIpe FemIx booklet, absolutely free! What's more, you can also try these recIpes at most of the HaldIram's outlets
nstItutIonal advertIsIng: The objectIves of advertIsements are to enhance the Image of the company rather than sellIng the product. For example, WIpro uses ,ApplyIng Thought for all Its busInesses thus promotIng the company.
Product advertIsIng: The objectIve of thIs type of advertIsement Is to communIcate about the product attrIbutes to the target customer. Product advertIsIng Is further classIfIed Into three types. They are 1 PIoneer advertIsIng: ThIs mode of advertIsements Is used to create awareness and demand In the InItIal stage of the product lIfe cycle. For example, TATA 0ocomo advertIsed InItIally as to why a person should pay for the unused mInutes when talks may last for seconds.
CompetItIve advertIsements: ThIs type of advertIsement Is used to hIghlIght the dIfferentIatIon of organIzatIons product. ThIs method Is usually used In the growth phase of product lIfe cycle. For example, 0etergents lIke ArIel, Surf and TIde constantly dIfferentIate theIr product features from each other.
ComparatIve advertIsements: ThIs type of advertIsements hIghlIght on the comparIng companys communIcatIon message wIth competItors product InformatIon. ThIs method Is used when the competItIon Is very hIgh or sales are sluggIsh. For example, soft drInks lIke PepsI and Cocacola at some poInt were Involved In comparatIve advertIsIng.
Q.2) bot ore tbe Jifferent morket entry stroteqies if o compony wonts to enter internotionol morkets?
ns:- rganIzatIons that plan to go for InternatIonal marketIng should know the answers for some basIc questIons lIke a. n how many countrIes would the company lIke to operate: b. What are the types of countrIes It plans to enter: Thats why companIes evaluate each country agaInst the market sIze, market growth, and cost of doIng busIness, competItIve advantage and rIsk level.
CheckIIst for country evaIuatIon CharacterIstIcs weIghtages score
1. PolItIcal rIghts 2. CIvIl lIbertIes J. Control of corruptIon 4. Covernment effectIveness 5. Fule of law or legal Issues 6. Health expendIture 7. EducatIon expendIture 8. Fegulatory qualIty 9. Cost of startIng a busIness 10. 0ays to start a busIness 11. Trade polIcy 12. nflatIon 1J. FIscal polIcy 14. ConsumptIon patterns 15. CompetItIon
0Irect exportIng Is the technIque In whIch organIzatIon exports the goods on Its own by takIng all the rIsks. |arutI Udyog LImIted, ndIas leadIng car manufacturer exports Its cars on Its own. Company can also set up overseas branches to sell theIr products. AdanI Exports, another leadIng exporter from ndIa has InternatIonal offIce In SIngapore.
LIcensIng: AccordIng to PhIlIp Kotler, lIcensIng Is a method of enterIng a foreIgn market In whIch the company enters Into an agreement wIth a lIcense In the foreIgn market, offerIng the rIght to use a manufacturIng process, trademark, patent, or other Item of value for a fee or royalty. For example, Torrent PharmaceutIcals has lIcense to sell the cardIovascular drugs of ChInese manufacturer Tasly. LIcensIng may cause some problems to the parent company. LIcensee may vIolate the agreement and can use the technology of the parent company.
Contract manufacturIng: Company enters the InternatIonal market wIth a tIe up between manufacturer to produce the product or the servIce. For example, CIgabyte Technology has contract manufacturIng agreement wIth 0 lInk ndIa to produce and sell theIr mother boards. Another sIgnIfIcant manufacturer Is T7S ElectronIcs; It produces key boards In Its own name as well as for other companIes too.
anagement contractIng: n thIs case, a company enters the InternatIonal market by provIdIng the know how of the product to the domestIc manufacturer. The capItal, marketIng and other actIvItIes are carrIed out by the local manufacturer, hence It Is less rIsky too.
JoInt ownershIp: A form of joInt venture In whIch an InternatIonal company Invests equally wIth a domestIc manufacturer. Therefore It also has equal rIght In the controllIng operatIons. For example, 8arbara, a lIngerIe manufacturer has joInt venture wIth Cokaldas mages In ndIa.
0Irect Investment: n thIs method of InternatIonal market entry, Company Invests In manufacturIng or assemblIng. The company may enjoy the low cost advantages of that country. |any manufacturIng fIrms Invested dIrectly In the ChInese market to get Its low cost advantage. Some governments provIde IncentIves and tax benefIts to the company whIch manufactures the product In theIr country. There Is government restrIctIon In some countrIes to opt only for dIrect Investment, as It produces the jobs to the local people.
ThIs mode also depends on the country attractIveness. t may become rIsky If the market matures or unstable government exIsts.CommunIcatIon In the InternatIonal market Is very challengIng. There exIsts many languages and dIalects and dIfferent perceptIons about communIcatIon strategIes. n some countrIes there are regulatIons on the advertIsements and sales promotIons.
For example In ndIa, alcohol advertIsements are banned. n thIs sectIon we deal wIth the communIcatIon strategIes that the company should adopt and what are the barrIers to It. The marketer may face the language barrIers, cultural barrIers and legal barrIers In some countrIes. n SaudI ArabIa usIng women In advertIsements Is prohIbIted. 7odafone has to change Its promotIon program to TamIl In TamIlnadu, a state In ndIa. rganIzatIons also face the problem of medIa and productIon cost In dIfferent countrIes.
Clobal promotIonal program wIll have three sets of objectIves. FIrst of all, In settIng the global objectIves, Secondly, formulatIng the regIonal objectIves and fInally settIng the local objectIves. The medIa decIsIons depend on the objectIves of the promotIon program. As we dIscussed In the promotIon unIt, medIa budget In the InternatIonal marketIng Is also determIned by percentage sales method, competItIve parIty, resource allocatIon and objectIve and task method.
Clobal promotIon program may be standardIzed or adapted. StandardIzatIon wIll help the company to reduce cost and add the value to the product. The pItfall of standardIzatIon Is local customers who cannot understand global messages. ne of the famous companIes In the world was showIng Its advertIsements on supply chaIn management software In ndIa In the same way as In the USA. The advertIsement evaluatIon results were very strange. People can recall only the horse word In the advertIsement. As we dIscussed In the earlIer sectIon of the unIt, company can adapt Its communIcatIon strategy only to the local market, or both product and communIcatIon can be adapted. AdvertIsements wIll have modIfIcatIons. f marketer wants to sell theIr products In Japan, he should not use whIte color as It Is consIdered only for mournIng.
.. A. Stote tbe meoninq of ProJuct life cycle onJ exploin tbe Jifferent stoqes involveJ in it.
Ans:-
Product IIne: The group of related products whIch uses same marketIng efforts to reach the consumer. The product lIne IdentIfIes profItable and unprofItable products and helps In allocatIon of resources accordIng to that. The product lIne understandIng helps the marketer to take lIne extensIon, lIne prunIng and lIne fIllIng strategIes of the company. PIdIlIte ndustrIes, the adhesIves and chemIcal company, have the followIng group of related products (or product lInes) In consumer and busIness markets.
Consumer market 1. AdhesIves and sealants. 2. Art materIals and statIonerIes. J. ConstructIon chemIcals. 4. AutomotIve chemIcals 5. FabrIc care
usIness market 1. ndustrIal adhesIves. 2. TextIle chemIcals. J. rganIc pIgment powders. 4. ndustrIal resIns and 5. Leather chemIcals.
Product LIne 0ecIsIons: The major product lIne decIsIons are a. Product lIne length b. Product lIne stretchIng c. Product lIne fIllIng d. Product lIne prunIng
Product IIne Iength: The number of Items In the product lIne Is called the product lIne length. Company should decIde whether It requIres longer chaIn or shorter length. The decIsIon depends upon the objectIve of the company, competItIve envIronment and profItabIlIty. f the chaIn Is short company can add new products and If It Is lengthy company can reduce the number of products. For example, PIdIlIte's adhesIves and
sealants lIne has followIng 11 Items In the product lIne. Hence the length of product lIne Is 11
Product IIne prunIng: FemovIng the unprofItable products form the product lIne. Toyota KIrloskar phased out theIr well known brand QualIs when they thought the brand was not addIng value to the product lIne.
..B. Befine Customer Relotionsbip onoqement.
Ans:-
8erry defInes CF| as "attractIng, maIntaInIng and - In multIservIce organIzatIons - enhancIng customer relatIonshIps."
8erry and Parasuraman defIne CF| as "attractIng, developIng and retaInIng customer relatIonshIps."
n ndustrIal |arketIng, Jackson defInes CF| as "marketIng orIented toward strong, lastIng relatIonshIps wIth IndIvIdual accounts."
0oyle and Foth defIne CF|S as "the goal of relatIonshIp sellIng Is to earn the posItIon of preferred supplIer by developIng trust In key accounts over a perIod of tIme."
The sequence of actIvItIes for performIng relatIonshIp marketIng would Include developIng core servIces to buIld customer relatIonshIp, customIzatIon of relatIonshIp, augmentIng core servIces wIth extra benefIts, and enhancIng customer loyalty and fInetunIng Internal marketIng to promote external marketIng success.
ChrIstopher consIders relatIonshIp marketIng as "a tool to turn current and new customers Into regularly purchasIng clIents and then progressIvely movIng them through beIng strong supporters of the company and Its products to fInally beIng actIve and vocal advocates for the company."
FelatIonshIp marketIng Is In essence "sellIng by usIng psychologIcal rather than economIc Inducements to attract and retaIn customers. t seeks to personalIze and appeal to the hearts, mInds and purses of the mass consumers." James J. Lynch Thus, "Customer FelatIonshIp |anagement Is about acquIrIng, developIng and retaInIng satIsfIed loyal customers; achIevIng profItable growth, and creatIng economIc value In companys brand,"
From the above defInItIons, It could be concluded that Customer FelatIonshIp |anagement refers to all marketIng actIvItIes dIrected towards establIshIng, developIng, and sustaInIng long lastIng, trustIng, wInwIn, benefIcIal and successful relatIonal exchanges between the focal fIrm and all Its supportIng key stakeholders. CF| Is not a new concept but an ageold practIce, whIch Is on the rIse because of the benefIts It offers, especIally In the present marketIng scenarIo. So, CF| today Is a dIscIplIne as well as a set of dIscrete software and technology whIch focuses on automatIng and ImprovIng the busIness process assocIated wIth managIng customer relatIonshIps In the area of sales, marketIng, customer servIce and support. CF| helps companIes
understand, establIsh and nurture longterm relatIonshIps wIth clIents as well as In retaInIng current customers. The most Important step that an organIzatIon has to take In the dIrectIon of CF| Is to create an InterdIscIplInary team to revIew how the organIzatIon Interacts wIth each customer and determIne how to Improve and extend the relatIonshIp.
An extensIve revIew of lIterature reveals ten dIfferent but Interrelated forms of relatIonshIp marketIng as mentIoned below:
1. The partnerIng Involved In relatIonal exchanges between manufacturers and theIr external goods supplIers.
2. FelatIonal exchanges InvolvIng servIce provIders, as between advertIsIng or marketIng research agencIes and theIr respectIve clIents.
J. StrategIc allIances between fIrms and theIr competItors, as In technology allIances; comarketIng allIances and global strategIc allIances.
4. AllIances between a fIrm and nonprofIt organIzatIons, as In publIcpurpose partnershIps.
5. PartnershIps for joInt research and development, as between fIrms and local, state, or natIonal governments. 6. Longterm exchanges between fIrms and ultImate customers, as partIcularly recommended In the servIces marketIng area.
7. FelatIonal exchanges of workIng partnershIps as In channels of dIstrIbutIon.
8. Exchanges InvolvIng functIonal departments wIthIn a fIrm.
9. Exchanges between a fIrm and Its employees, as In Internal marketIng.
10. WIthIn fIrm, relatIonal exchanges InvolvIng such busIness unIts as subsIdIarIes, dIvIsIons or strategIc busIness unIts.
These dIfferent forms of relatIonshIp marketIng both joIntly and severally Influence the emergence and growth of endurIng longterm dyadIc, trIadIc network, and web of relatIonshIps between the focal fIrm and Its supportIng key stakeholders.
Q.4) A. You ore o soles monoqer in ABC firm. You bove token some interviews onJ sbortlisteJ o few conJiJotes. Eow will you select tbe riqbt conJiJote for tbe soles job?
Ans:-
The Important tasks In order to make Sales management effectIve and effIcIent Include the followIng HF practIces whIch are normally adopted In any organIzatIon
PecruItIng FecruItment Is a process of fIndIng out candIdates, who are encouraged to apply. SelectIon Is process of choosIng or shortlIstIng some suItable candIdates out of many those who have applIed. Therefore, we can say that selectIon Is recruItment, but recruItment Is not selectIon. SelectIon Is a process of rejectIon of unfIts. FecruItment precedes the selectIon process. After decIdIng the number of salespersons and the objectIves, the sales manager must select personnel. The usual sources of recruItment may be eIther Internal or external.
InternaI Sources: |any fIrms feel that the best polIcy to fIll the vacancIes of salespersons Is from the exIstIng employees of the same organIzatIon. t may also be termed as promotIon. ThIs can well be adopted by analyzIng the abIlIty and promIsIng character of the staff on the basIs of senIorIty I.e., length of servIces.
erIts: 1. |uch cooperatIon can be expected. 2. They are loyal. J. SInce It Is a promotIon, sIncere and honest performance can be expected. 4. They may not need traInIng. 5. They may not need hIgh salary.
0emerIts: 1. There Is lImIted scope for selectIon. 2. FavorItIsm plays Its role. J. The person may not adjust hImself to the new job as the nature of work Is dIfferent. Apart from the Internal selectIon, exemployees of the company can also be appoInted If they are wIllIng to accept a job. ThIs polIcy Is better and can profItably be adopted.
ExternaI Sources: We have the followIng sources: 1. Employment Exchange 2. CompetItors organIzatIon J. Salesperson of noncompetIng fIrms 4. EducatIonal nstItutIons 5. Fecommended cases 6. AdvertIsement 7. UnsolIcIted applIcatIons etc.
1) EmpIoyment Exchange: PrIvate and publIc employment exchanges are the best source of personnel. They maIntaIn proper regIsters wIth names and other full detaIls of persons, such as job referred by those who seek jobs. The sales manager can call persons from exchange, by gIvIng job specIfIcatIon to the offIcer concerned. n almost all cases the candIdates may be untraIned; and InexperIenced hands requIrIng further traInIng.
2) CompetItors' DrganIzatIon: The salespersons employed In other competIng fIrms can also be chosen. 8ut thIs method Is not morally accepted. He may be traIned and may be developIng hIs fIrm. Such a person can be drawn by temptatIon when he Is offered more facIlItIes and a hIgher salary. 8ut It must be verIfIed how far he Is able to meet the sales objectIves, consIderIng hIs sIncerIty, loyalty, habIts etc Such a man, when he gets some addItIonal benefIts from some other fIrms, wIll follow the same tactIcs I.e., leave the fIrm.
J) SaIespersons of Non-competIng FIrms: Salesperson can also be chosen from noncompetIng fIrms. Such persons may have experIence In the lIne, If not touch wIth the partIcular product. They may need traInIng to come up to the level of aImed sales objectIves.
4) EducatIonaI InstItutIons: Advanced countrIes lIke AmerIca, England etc., select students dIrectly from specIalIzed InstItutIons, where theoretIcal and practIcal knowledge Is gaIned by them. The nstItutIonal Heads maIntaIn complete records of students but as far as ndIa Is concerned, the chances are rare. t has been neglected wIth the feelIng, ,just from egg I.e., InexperIenced.
5) Pecommended Cases: The employees of the fIrm managers, superIntendents, sectIon heads etc., may recommend candIdates from theIr frIend cIrcles. They have a moral esponsIbIlIty when such persons are recruIted. The employee who recommends ersonnel wIll be blamed, If the person Is Incapable of doIng the assIgned work.
dvertIsement :-
ThIs Is a generally accepted system of recruItIng salespeople by fIrms. AdvertIsements are dIsplayed In newspapers, trade journals specIfyIng the job and the requIred qualIfIcatIons, experIence and skIll. There Is the possIbIlIty of a wIder scope of selectIon, as the news spreads over a wIde geographIcal area.
SeIectIng SelectIon procedure dIffers from fIrm to fIrm. Each fIrm has got Its own method In choosIng people for employment. The qualItIes that the recruIters seek In people to be appoInted, depends on the job descrIptIon. SImIlarly the selectIon method also depends upon the sales management. Cenerally, the followIng steps are followed:
1. ApplIcatIon blank 2. ScreenIng J. Feference 4. Personal IntervIew 5. Test 6. |edIcal examInatIon 7. FInal IntervIew (appoIntment)
ppIIcatIon Iank: Necessary InformatIon about the applIcant Is requIred to be consIdered for appoIntment. Cenerally, the candIdates are asked to apply on companys applIcatIon form, sent dIrectly to applIcants agaInst a requIsItIon, or an applIcatIon known as applIcatIon blank Is gIven In the advertIsement Itself. ThIs Is wIth a vIew to gather only the necessary detaIls of the applIcants. t contaIns a number of questIons, whIch after beIng fIlled, gIves a clear Idea about the candIdate. Cenerally, It may contaIn the name, sex, qualIfIcatIon, age, experIence, health, socIal actIvItIes, address, references etc. ScreenIng: All applIcatIons wIll not be consIdered. ScreenIng Is a process by whIch applIcatIons are to be screened out (rejected) from further consIderatIon, on the basIs of unsuItabIlIty. The remaInIng applIcatIons are formally consIdered for appoIntment, subject to further formalItIes. 8y rejectIng the applIcatIons of unqualIfIed applIcants, much tIme and energy can be saved In further processIng. Peference: Cenerally, It Is a common practIce to ask the applIcant to mentIon the names of two references or referees, to whom the sales manager can make enquIrIes about the IntegrIty, general character and abIlIty of the applIcant concerned. The qualItIes are checked wIth care and cautIon by the sales manager, by contactIng the referees. f the opInIons are favorable, the applIcatIons pass on to the next stage; and In case the referee gIves unfavorable comment, the applIcatIon Is rejected at thIs stage. Personal contact Is necessary and It Is better, because people are straIght forward In tongue better than In pen. ThIs Is onesIded, but the effectIveness of such opInIon Is doubted, as there may be chances of tellIng only the good qualItIes of applIcants. |oreover, only the names of such favorable persons are mentIoned In reference, wIth preIntImatIon. To overcome thIs, personal IntervIew Is essentIal.
PersonaI IntervIew: ThIs Is an Important step In the process of selectIon. nly the screened applIcatIons are consIdered for selectIon to whIch the fIrm sends out IntervIew letters. Personal IntervIew Is a must. Through thIs IntervIew, the sales manager can understand the posItIve and negatIve qualItIes of the applIcant, wIth reference to the job dutIes. A good IntervIewer must be unbIased, able to dIscover facts and be a keen observer of the IntervIewee. ntervIews are also of two types: (a) Patterned and nonpatterned. Under patterned IntervIew, questIons are desIgned and the same questIons are asked to all, whIch Is easy for comparIson purposes. (b) n nonpatterned IntervIew, no standardIzed questIons are asked. The applIcant Is allowed to talk freely. A few dIrect questIons are asked. n thIs type of IntervIew, the applIcant gets a chance of speakIng about hIs attItude and Interest freely. The IntervIewer must be able to make an easy evaluatIon of the IntervIew.
%ests: Test Is an addItIonal tool, wIth whIch the applIcants are further tested to determIne theIr suItabIlIty for the job. Cenerally, followIng are the Important types of psychologIcal tests conducted:
bIIIty %est: ThIs test Is devIsed to ascertaIn the capacIty to grasp thIngs, and Is a measure to know how well a person performs a partIcular task wIth motIvatIon. ThIs can also be called a mental abIlIty or IntellIgence test. Such tests determIne the suItabIlIty of a candIdate for a partIcular job.
HabItuaI CharacterIstIc %est: A person may be IntellIgent but may hesItate to take a decIsIon. ThIs test Is aImed to know ones aptItude and Interest on normal, daIly work, IrrespectIve of the best behavIor occasIonally. chIevement %est: ThIs test Is desIgned to know what knowledge a person has gaIned from hIs educatIon or traInIng. 8y all these psychologIcal tests, the abIlIty and suItabIlIty of a candIdate can be verIfIed. ne can aIm to evaluate the honesty, cheerfulness, leadershIp qualIty, assertIveness, cooperatIon, supervIsIon capacIty, emotIonal stabIlIty, determInatIon, abIlIty etc., of the personnel. The effectIveness and relIabIlIty of these tests are questIonable, as the qualItIes cannot be measured exactly and the cIrcumstances to be faced by salespersons are also dIfferent.
edIcaI ExamInatIon: The Important thIng about any person, apart from all qualItIes and elIgIbIlIty, Is that he/she must be physIcally fIt for the job. 0Iseases and physIcal defIcIencIes of the salesperson wIll affect the busIness. As such, selected applIcants have to undergo medIcal examInatIon.
FInaI IntervIew and ppoIntment: The selected applIcant Is probably, called for a fInal IntervIew and hIs/her suItabIlIty Is measured through dIfferent tests, physIcal reports etc. nce confIrmed, appoIntment letter wIll be gIven to the person and the job wIll t be explaIned to hIm/her, along wIth all relevant detaIls, whIch are requIred to perform the dutIes effIcIently. f everythIng Is In favor of the applIcant, an agreement must be executed by hIm/her. Cenerally, the agreement contaIns dutIes and authorItIes, sales quota, sales terrItory allotted, salary and condItIons of resIgnIng. t Is followed by an appoIntment order, whIch contaIns desIgnatIon, jobs to be performed, salary and other fInancIal benefIts etc.
SIgnIfIcance of %raInIng: The present era of marketIng world Is full of stIff and cutthroat competItIon. The world Is dynamIc and not statIc. Customers are more benefItorIented. Producers, In order to meet the everchangIng demands of the consumers, produce new products, new devIces, and products wIth multIple uses and so on. Thus, traInIng or repeated traInIng Is essentIal to keep the salesmen, wIth uptodate knowledge, In respect of new or developed goods. TraInIng gIves scope for Improvement.
DbjectIves of %raInIng: The objectIves are summed up below: 1. To facIlItate the salespersons to acquIre the technIques and prIncIples of salesmanshIp, process of sales, canvassIng etc. 2. To brIng down the labor turnover In the sales force. J. To facIlItate better sales performance. 4. To Improve the relatIons wIth the customers. 5. To Increase the effIcIency of sales personnel. 6. To keep the salesperson Informed about the products, market, competItors etc., to face dIfferent sItuatIons. 7. To lower the sellIng expense so as to Increase the profIts. 8. To maIntaIn sound relatIons between employer and employee. 9. To develop better knowledge, and the ways and means to resIst all undesIrable sItuatIons. 10. To motIvate the consumers more effectIvely.
Q.4.8. As o consumer, wbot ore tbe steps you will unJertoke before you JeciJe to buy o cor?
Ans:-
The buyers decIsIon for exIstIng products and new products varIes. You already seen In the exIstIng product buyIng decIsIon process consumers have the optIon to search for the InformatIon and evaluate them. n the new product such optIons dont exIst. Therefore we should understand how consumer comes to know about the product. Kotler defIned thIs process as adoptIon process. AccordIng to PhIlIp Kotler AdoptIon Is ,The mental process through whIch an IndIvIdual passes from fIrst hearIng about an InnovatIon to fInal adoptIon.
1. wareness: the consumer became aware of the product but lacks InformatIon about It.
2. Interest: 8y thIs stage prevIous InformatIon Is avaIlable, consumer shows Interest to get the InformatIon about the product.
J. EvaIuatIon: After receIvIng the InformatIon consumer analyzes the benefIts of new products over any exIstIng products or substItutes and decIdes whether to buy or not.
4. %rIaI: The consumer trIes the new product on a small scale to Improve hIs or her estImate of Its value.
5. doptIon: n thIs stage consumer decIdes to make full and regular use of the product.
1. 2.5 of the consumers adopt any new product that enters to the market. These consumers are status conscIous people. |arketer should hIghlIght how the new product wIll brIng the esteem to the consumer.
2. 1J.5 of the customers fall Into the early adopter categorIes. n thIs categorIes customer observed the advantage of the new product and the moment the prIce of the product falls Into the affordable category they buy the product.
J. The next group Is the bIggest one In the adoptIon process. These group customers are attracted towards the benefIts of the product. They make sure that there are no technIcal or general problems assocIated wIth the product. ThIs group contaIns J4 of the total customers.
4. ThIs group consIst J4 of customers. The group looks for the qualIty product at the affordable prIces.
5. The fInal group Is called as laggards. These are tradItIonal and prIce conscIous people. They often take lot of tIme to adoptIon of the product.
Q.5 A) bot ore tbe feotures of Business morkets? Eow is it Jifferent from consumer morkets?
Ans:-
FollowIng are some of the unIque features of busIness markets where large establIshments purchase the requIred goods and servIces from other busInesses. Such 828 operatIons determIne the organIzatIons as buyers and those organIzatIons who supply the varIous requIrements wIll be the sellers or supplIers or servIce provIders.
1. Few but buIk uyers: The no. of buyers Is few but they buy In large quantIty. For example, major aIrlInes buy the necessary equIpments from the aIrcraft manufacturers 2. eographIcaI concentratIon of buyers: 8uyers are geographIcally concentrated. For example, shIppIng IndustrIes are located on the east and west coasts of ndIa than In any other places. J. 'arIabIe demand: The nature of demand Is fluctuatIng because the demand Is basIcally a derIved one. 8ased on the requIrements of the consumer markets, organIzatIons buy the goods and make the fInIshed goods avaIlable In the market for fInal consumptIon. Larger the consumer demand, larger wIll be the organIzatIonal buyIng. For example, mobIles are beIng used by a large populatIon and so cellular companIes have to meet thIs rIsIng demand. 4. IneIastIc demand: The demand Is also InelastIc because organIzatIons cannot make rapId changes In the productIon structure and so prIces remaIn constant In the shortterm. For example, Shoe manufacturers wIll not buy much leather If the prIce of leather Is less neIther wIll they buy less leather If the prIce Increases.
5. SystematIc purchasIng: The purchasIng actIvIty Is dIrectly between the buyer and supplIer organIzatIon whIch means there are no or very few mIddlemen Involved. PurchasIng actIvIty Is usually undertaken by purchase departments based on a proper structure and through varIous mechanIsms lIke havIng purchase requIsItIons from other sectIons, InvItIng tenders and sendIng InvoIces from the supplIers, purchasIng agreements or contracts wIth the key supplIers, renewIng agreements etc. For example, FelIance Fresh has regular contracts wIth the agrIcultural producers for smooth supply of fresh fruIts and vegetables. 6. uItIpIe buyIng InfIuences: there wIll be several partIes Involved In decIdIng about the purchases because organIzatIons wIll have several departments and unIts functIonIng under It wIth dIfferent requIrements. So, unless they have the proper resources to work wIth there wIll be problems In the departments. For example, purchase department In a HospItal must be aware about the specIfIc requIrements In the clInIcal wards, operatIon theaters, labs, etc. 7. PecIprocatIon: ThIs means that when an organIzatIon buys goods from another organIzatIon then the supplIer organIzatIon also mIght need certaIn other goods that are produced by the buyer organIzatIon. For example, a statIonery supplIer wIll supply the necessary statIonerIes to the paper manufacturer who In turn provIdes papers to the supplIer. 8. Lease agreements: |ost organIzatIons take on lease the expensIve equIpments requIred by them rather than buy It. So, In thIs way, they reduce cost, get better servIce and the lessor or one who provIdes the equIpments wIll also profIt from the rent or lease charges. For example, TATA provIdes the transport trucks to other organIzatIons on lease.
The dIfferences stated above may not exactIng and water tIght dIvIsIons. Even In case of a busIness makIng a purchase for a regular statIonary Item, the responsIble employee may adopt an IndIvIdualIstIc and dIrect approach. SImIlarly IndustrIal advertIsIng may be effectIve. The dIfferences lead to behavIor patterns whIch are also dIfferent. As an example, emotIon plays a major role In a purchase decIsIon for an IndIvIdual In a consumer market but wIll hardly come Into play In the busIness market.
Q.5 8) ist out tbe S importont requisites of on effective seqmentotion by qivinq suitoble exomples.
Ans:-
To be useful, market segmentatIon must exhIbIt some characterIstIcs that are as follows:
1. easurabIe and DbtaInabIe: The sIze, profIle and other relevant characterIstIcs of the segment must be measurable and obtaInable In terms of data. f the InformatIon Is not obtaInable, no segmentatIon can be carrIed out. For example, Census of ndIa provIdes the data on mIgratIon and educatIon level, but does not specIfy how many of the mIgrated employees are educated and If educated how many are In whIte collared jobs. f a company wants to target whIte color collared employees who are mIgrated to partIcular cIty, It wIll not able to measure the same.
2. SubstantIaI: The segment should be large enough to be profItable. For consumer markets, the small segment mIght dIsproportIonably Increase the cost and hence products are prIced too hIgh. For example, when the cellular servIces started In ndIa cost of the IncomIng calls and outgoIng calls were charged at Fs 12/mInute. As the number of subscrIbers grew, IncomIng calls became free. Further growth of subscrIbers resulted In lowerIng tarIffs for outgoIng calls to the lowest level In the world.
J. ccessIbIe: The segment should be accessIble through exIstIng network of people at an affordable cost. For example, |ajorIty of the rural populatIon Is stIll not able to access the Internet due to the hIgh cost and nonavaIlabIlIty of connectIons and bandwIdth.
4. 0IfferentIabIe: The segments should be dIfferent from each other and may requIre dIfferent 4Ps and programs. For example, LIfe nsurance CorporatIon of ndIa needs separate marketIng programs to sell theIr Insurance plans, unIt plans, pensIon plans and group schemes
5. ctIonabIe: The segments whIch a company wIshes to pursue must be actIonable In the sense that there should be suffIcIent fInance, personnel, and capabIlIty to take them all.
Q.) Fxploin briefly wbot ore tbe severol processes involveJ in new proJuct Jevelopment.
Ans:-
New products are essentIal for exIstIng fIrms to keep the momentum and for new fIrms they provIde the dIfferentIatIon. New product doesn't mean that It Is absolutely new to the world. t may be a modIfIcatIon, or offered In a new market, or dIfferentIated from exIstIng products. Therefore It Is necessary to understand the concept of new products.
|eanIng of New Products:
%hey are reaIIy InnovatIve For example, Coogle's rkut, a networkIng sIte whIch revolutIonIzed socIal networkIng. n thIs sIte people can meet lIke mInded people; they can form theIr own groups, share photos, comments and many more.
%hey are very dIfferent from the others: HaIer launches pathbreakIng 40oor FefrIgerators fIrst tIme In ndIa
C %hey are ImItatIve; These products are not new to the market but new to the company. For example, CavIn Kare launched FuchI pIckles. ThIs product Is new to CavIn Kare but not to the market.
New product deveIopment process:
Stage 1 - Idea generatIon: New product Idea can be generated eIther from the Internal sources or external sources. The Internal sources Include employees of the organIzatIon and data collected from the market. The external source Includes customers, competItors and supply chaIn members. For example, ngersoll Fand welcomes new Ideas from the Ceneral publIc
Stage -Idea screenIng: rganIzatIon may have varIous Ideas but It should fInd out whIch of these Ideas can be translated Into concepts. n an IntervIew to TImes of ndIa, |r. Fatan Tata, chaIrman TATA group dIscussed how hIs Idea saw many changes from the basIc versIon. He told that he wanted to develop car wIth scooter engIne, plastIc doors etc... 8ut when he unveIled the car, there were many changes In the product. ThIs shows that InItIal Idea wIll be changed on the basIs of market requIrements.
Stage - Concept deveIopment: the maIn feature or the specIfIc desIre that It caters to or the basIc appeal of the product Is created or desIgned In the concept development. Concepts used for Tata Nano car are
Concept : Lowend 'rural car,' probably wIthout doors or wIndows and wIth plastIc curtaIns that rolled down, a fourwheel versIon of the autorIckshaw
Concept : A car made by engIneerIng plastIcs and new materIals, and usIng new technology lIke aerospace adhesIves Instead of weldIng. Concept : ndIgenous, Inhouse car whIch meets all the envIronment standards
Stage 4 - Concept testIng: At thIs stage concept Is tested wIth the group of target customers. f any changes are requIred In the concept or the message It wIll be done durIng thIs stage. Also the effectIveness Is tested on a mInor scale. f the concept meets the specIfIc requIrements, then It wIll be accepted.
Stage arketIng strategy deveIopment: The marketIng strategy development Involves three parts. The fIrst part focuses on target market, sales, market share and profIt goals. TATA's InItIal busIness plan consIsted sales of 2 lakhs cars per annum. The second part Involves product prIce, dIstrIbutIon and marketIng budget strategIes. TATA's fIxed Fs 1 lakhs as the car prIce, and fIndIng self employed persons who work lIke agent to dIstrIbute the cars. The fInal part contaIns marketIng mIx strategy and profIt goals.
Stage - usIness anaIysIs: It Is the analysIs of sales, costs and profIts estImated for a new product and to fInd out whether these alIgn wIth the company mIssIon and objectIves.
Stage 7 - Product deveIopment: durIng thIs stage, product Is made to undergo further Improvements, new features or ImprovIsed versIons are added to the product. There Is also scope for InnovatIon and usIng the latest technology Into the product.
%% Nano car deveIopment (Source: busIness worId nanoIutIon - TrIed to outsource the product from all over the world. - 0evelopment of 'mule' or prototype wIth 20bhp. - 0esIgnIng the small engIne - ThermodynamIc sImulatIons and fInal engIne - 0evelopment of |PF wIth help of 8osch. - Cost reductIon and negotIatIng wIth vendors. - Sona Koyo and Fane Croup came up wIth hollow steerIng shafts, savIng cost and cuttIng weIght. Sharda |otors and Emcon desIgned the exhaust system and |FF tweaked the tyres to bear extra weIght on rear wheels.
Stage 8 - %est marketIng: Is the most crucIal stage for the testIng product's performance and Its future In the market. There are certaIn cases where product has faIled In the test marketIng and had to be wIthdrawn. - The product Is Introduced Into the realIstIc market - The 4P's of marketIng are tested. - The cost of test marketIng varIes wIth the type of product.
Stage - CommercIaIIzatIon: n thIs stage product Is completely placed In the open market and aggressIve communIcatIon program accompanIed wIth promotIon actIvItIes Is carrIed out to support It