Marketing Management Assignment-Smu Essay

Q.1 A. let off the six criteria for effective food securities industry segmentation * Identity The merchandise handler must deal some mode of identifying members of the segment i.e., some cornerstone for classifying an individual as existence or non being a member of the segment. There must be clear differences mingled with segments. Members of such(prenominal)(prenominal) segments raise be readily identified by common characteristics as they display similar behavior.* Accessibility It must be possible to mountain chain the different segments in regard to both promotion and distri exception. ln other(a) words, the composition must be able to focus its market efforts on the elect segment. Segments must be accessible in two senses. First, firms must be able to make segmented customers aware of increases or function. Second, they must conduct products to them with the distri only ifion system at a reasonable cost.* responsiveness A clearly defined segment must react to changes in any of the elements of the trade cockle. For example. if a particular segment is defined as being cost-conscious, it should react negatively to price rises. If it does not, this is an indication that the segment need to be redefined.* Size The segment must be reasonably king-size to be a profitable direct. Lt dep abrogates upon the number of people in it and their purchasing male monarch. For example, makers of luxury goods may appeal to small but wealthy target markets whereas makers of cheap consumption goods may sell to a large but relatively poor target markets.* Nature of demand lt refers to the different quantities demanded by various(a) segments. Segmentation is required entirely if there are market differentiation in terms of demand. The marketing charabanc should not only be able to find give away the total demand and the differences in demand patterns in each of these segments.* Measurability The purpose of segmentation is to stair the c hanging demeanoural 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, etceteraB. Discuss the types of target marketing strategies.* Undifferentiated marketing strategy or mass marketing strategyIn the absence of a proper mechanism to classify the market into a number of markets segments and tumble their authority, many firms decide on the mass marketing strategy. In this case, the seller goes against the idea of a differentiated market and decides to sell the product to the unit market. Here the marketing manager ignores the idea of segment characteristics and differences, and originates a incorporated marketing programme for the entire market. This strategy keeps the overall marketing cost poor and makes it easier to manage and track the market forces uniformly. The marketer tries to find out commonalities across various segments rather than focusing on the dif ferences between segments.* voiceless marketing strategyIn the second alternative strategy, the marketing manager decides to enter into a selected market segment instead of all the ready(prenominal) market segments. When resources and market access are extra and the club has to font intense contender, the marketing manager has to stretch the budget for market coverage. In this case, the confederacy is bidly to follow the concentrated marketing strategy.* Differentiated marketing strategyMany marketers choose to target several segments or niches with a differentiated marketing offer to suit each market segment. Maruti is the guide automobile guild, which has the distinction of having different products for different market segments.Q.2 Explain the consumer corrupt decision shape.* Problem realisationA purchase process starts when a consumer recognizes that there is a substantial discrepancy between his/her current verbalize of satis itemion and expectations in a cons umption situation. A need provoke be activated through internal or out-of-door stimuli. The elemental needs of common men rise to a particular aim and become a drive. From their previous experiences, they cognise how to satisfy these needs comparable hunger, thirst, sex, etc. This is a case of internal stimulus. A need whoremonger overly be aro practice sessiond by an foreign stimulus such as sighting a spic-and-span product in a shop while purchasing other usual products.* Information attendAfter need arousal, the behaviour of the consumer leads towards exhibition of available friendship slightly various stimuli. ln this case, data intimately products and services are gathered from various sources for further processing and decision- do. The first source of consumer breeding is the internal source. This means the consumer first search the info regarding the relevant product from his/her inner memory. If the information is not available from internal source for ma king a purchase decision he or she may collect information from external sources. A External sources for desired information can be separate into four categories.* Personal sources (family, friends, neighbors, and peer group) * Commercial sources or market predominate sources (advertisements, salesmen, dealers, and federation owned sales force) * Public sources (mass media, consumer rating organisations, and trading connectedness nationalations) * Experiential sources (handling, examining, and using the product) The marketer will find it worthwhile to learning the consumers information sources when * A substantial percentage of the target market engages in the search * The target market shows some stable patterns of using the individual information sources.* Alternative military rankOnce interest in a product(s) is aroused, a consumer enters the subsequent show of evaluation of alternatives. Evaluation leads to formation of stealing intention that can be to either purcha se or defy the product/brand. The final purchase will however depend on the capacity 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 tierce no buying, buying later, and buy now. No buying takes the consumers to the problem recognition stage 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 personal and economical situation that forces the consumer not to buy now or postponement of purchase for future stream of time. If positive locations are formed towards the decided alternative, 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 satisfaction. This behaviour is reflected in repeated purchases or abstinence from further purchase. A fulfill product-use experience leads to repeated purchase, referrals from satisfied customers to new customers, higher usage rate, and alike brand advocacy.Q.3 A. Discuss the Henry Assael model on buying decision behaviour. Henry Assael has come up with an explanation to analyse why consumers buy the goods they buy. He explained the race 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. High involvement Low Involvement Signi bevel differences Complex Variety Seeking between brands buy Behaviour Buying Behaviour Few differences Dissonance Reducing Habitual Buying between brands Buying Behaviour* Complex buying behaviour Consumers are exceedingly involved in a purchase and aware of significant differences among brands. This is normally the ca se 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. precedent personal computer. * Dissonance-reducing sometimes, the consumer is highly involved in a purchase but sees scant(p) 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 fraudulent scheme that stems from noticing certain disquieting features of the carpet or hearing favorable things about other carpets.* Habitual buying behaviour Many products are bought to a lower bunk 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 habi t and not brawny 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 interest of variety rather than dissatisfaction. Example wafer potato chips.B. Explain the five stages of credence Process.* 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. * 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 kind of mental ladder 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. * Tri aI- ln this stage- consumers use the product on a limited basis. Their experience with the product pull up stakess 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 Describe the components of the micro surroundings of marketing * The company Some company factors that shanghai the marketing decisions are Culture and value system organisational culture can be viewed as the system of shared value and beliefs that shape a companys behavioural norms. A value. is an long-suffering preference as a mode of conduct or an end state. The value system of the demonstrateers of the organisation has a lasting regard on it. The value system not only influences the working of the company and the attitude of its people but alike the choice of its concern.1. Mission and objectives The mission and objectives of the company guide the priorities, direction of development, bank lin e philosophy, and bloodline policy. 2. Management structure and temper Structure is the manner in which the tasks and sub-tasks of the organisation are related. Structure is concern with the hierarchical relationship and the relationship between the management of different operable areas like the structure of the top management and the pattern of share holding. 3. tender-hearted 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 go them to push competitors product deeper and faster. * PublicPositive and fav orable public opinion is crucial to marketing success since the public is the authority that permits the existence and surgical procedure of agonistic marketing systems. This environmental factor includes the general public, its support, the government, and the set of public who have a direct bearing on business. These public can be classified as welcome public, sought public, and unsought public. As a marketer, one must understand that the general public grants the evidence for conducting business with an expectation that the company will practice fair play. omit 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 grow th in refrigerator industry, Godrej as a brand is not growing as fast as its competitors. Through the years, marketing systems have become increasingly competitive. Traditional economic analysis, views competition as a battle between companies in the same industry or between substitutable products. Marketers, however, tend to accept the disputation 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 allocate 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 new uses for existing products, with the whole arena of competition being expanded. While this forces bus iness 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. affliction to do so will result in a failed business strategy.Q.5 A. Explain the types of trade Information systemsMIS supplies three types of information, which are* Monitoring information Monitoring informa tion 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 search reports. Data are captured to supervise 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. ln MlS, 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, advertizement 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 pass 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 relevant and competitive marketing strategies. * essential 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 wages 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. * merchandise intelligence system A marketing intelligence system is the system of accumulation 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 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 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 do 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 create an Effective marketing mix. To develop an effective marketing mix the company should consider the following factors and then choose the most appropriate mix of elements (7Ps) to target the customers * Companys resources These are one of the prime factors poignant the companys marketing mix. The financial, human, and technological resources available with the company strickle the composition of the marketing mix. The firm needs to conduct a Strength, Weakness, Opportunity, and holy terr or (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 use, the credibility 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 in position, predictability, and status of the market.Porters Five 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. * rivalrous rivalry The strength of competition in the industry. * Threat of substitution The utmost 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 opinion about how each force affects a product and by identifying the strength and direction of each force, you can quickly assess the strength of a products position and ability to make a sustain prot in the industry.