Master of Business Administration - MBA Semester 2 MB0046 Marketing Management ASSIGNMENT- Set 1 _______________________________________________________

Q.1 Explain the various stages involved in new product development Q.2 Discuss the importance of SWOT analysis to develop effective marketing mix. Q.3 Briefly explain the major external and uncontrollable factors that influence an organization decision making, performance and strategies Q.4 Discuss the potential benefits associated with MIS. Q.5 Describe five interdependent levels of basic human needs (motivators) as propounded by Abraham Maslow Q.6 List the important differences between Consumer market and business markets

Q.No.1.Ans:
Various stages involved in new product development 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 sources include customers ,competitors and supply chain members. For example ,Ingersoll Rand welcomes new ideas from the general public. Stage 2- Idea screening: Organization may have various ideas but it should find out which of these ideas can be translated into concept .In an interview to Times of India ,Mr. Ratan tata,chairman, TATA group discussed how his idea saw many changes from basic version. He told that he wanted to develop car with scooter engine, plastic doors etc...But when he unveiled the car, there were many changes in the product. This shows that initial idea will be changed on basis of market requirement. Stage 3- Concept Development: The main feature of the specific desire that it caters to or the basic appeal of the product is created or designed in the concept development. concept used for tata Nano development are: Concept 1: Low-end 'Rural car', probably without doors and windows and with plastic curtains that rolled down ,a four wheel version of the autorickshaw. Concept 2: A car made by engineering plastic and new material, and using new technology like aerospace adhesive instead of welding. Concept 3: Indigenous, in-house car which meets all the environment standards. Stage 4- Concept testing: At this stage concept is tested with the group of target customers If any changes are required in the concept or the message it will be done during this stage. Also an effectiveness is tested on a minor scale. If the concept meets the specific requirement, then it will be accepted. Stage 5- Marketing Strategy Development: 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 & marketing budget strategy. TATA's fixed Rs.1 laks 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 6- Business analysis: It is analysis of sales, costs and profit estimated for a new product and to find out whether these align with company mission and objective. Stage 7-Product development: During this stage ,product is made to undergo further improvements, new features or improvised version are added to the product .There is also scope for innovation and us

in the latest technology into the product.

Stage 8-Test marketing: Is the most crucial stage for testing products 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 9- Commercialization: In this stage product is completely placed in the open market and aggressive communication program accompanied with promotion activities is carried out to support it.

Q.No.2.Ans:
The importance of SWOT analysis to develop effective marketing mix: Following example shows how big bazar has worked out on its marketing mix in India after doing a SWOT analysis. SWOT analysis indicates the 4 specific and crucial areas by which an organization can know its position in the market. SWOT analysis can be done by any kind of organization, dealing with any kind of products or services, at any point of time and whenever it feels to do so. SWOT analysis is analysis showing the companies, a) Strengths: i.e. areas where it has got advantages, its core processes, its unique and successful brands, key people etc. If the company has a good reputation in the consumer market then it becomes strength of that company. b) Weaknesses: i.e. areas where the company is weak or having drawbacks and which need to be improvised or eliminated from the existing system. If the company feeling that its sales force has too many efficient people then it becomes the weakness of the company. c) Opportunities: i.e. areas where company can established it self and the challenges that it can accept to its benefit as well as the consumers. Suppose the company knows that here are the consumers all over world who consume company's products then their present opportunity of expanding its activities globally. d) Threats: i.e. areas where the company feels that it might be subject to pressure situations or where is unable to pull itself from a possible crisis or the threat ,ay simply come from competitive forces or other external factors such as recession.

Q.No.3.Ans:
Following are the major external and uncontrollable factors that influence an organisation decision making,performance and strategies. 1) Demographis environment: Demography: the study of population characteristc like size,density,location,gender composition,age structure,occupation and religion. Demography statistic helps companies to forecast demand.These statistics are also used in developing proper supply chain,communicating product information and changing the product attributes.Demographis environment is analyzed on the basis of following factors. Age structure of the population Marital status of population Geographis distribution of the populaion Education level Migration Occupation

2) Political and legal envirnment: Goverment policies ,legislations,and stability will directly affect the business.therefore it is inevitable for the firm to closely monitor this environment.The political and legal forces are groups into the following four categories. Social legislation and regulations.For e.g.Environmental protection Act which specifies the emission level Legislation,policies and regulations relating to industries:Labor Acts,factories Act and policies regardingsubsidies and change in tariff rateswill have direct impacton particular company. Legislations related to manufacturing,trading,marketing etc

3) Economix,Monetory and Natural environment: These constitute the large number of variables which can not be examined here in detail.The economic envirnment includes consumptin pattern,productivity pattern,spending pattern,and sectored growth and so on.The

monetory environment consist of inflation,interest rate,exchange rate,money supply etc.These provide vital clues to marketers to decide on product offering ,promotional decisions and pricing decisions.If the consumer patters or expenditure behaviour of thr middle class shieft towards higher levels,marketers seeks great opportunity for exchange offer,buy back offers etc.The middle class may like to upgrade and at the same time would like to get some valur for their old goods.Changes in the following iteams will influence the decision making pattern. Interest rate Inflation Change in income Natural environment

4) Social and Cultural environment: Growing urbanisation,increasing participation of womenin livelihood activities,advent of global cultural practices,greater exposure to lifestyles practiced worldwide etc has altered making efforts remarkably.A Club house and swimming pool are essentials part of thr purchase decsion for flat in a metro.marketers have encashed this treand during the nineteen nineties and later too.Festivals hav gained an urban colors and marketers are packaging festival offers accordingly.On the other hand the rural population has been exposed to urban lifestyle thanks to the electronic media.Companies like Hindustan lever has successfully markted their low price offering of toiletries and cosmetics in the rural areas.while this transformation is over a wide canvas,we mention below some of the major changes which have affected the marketing efforts.Changes in the following iteams will influence the decision making pattern. Working women and the rise of metro sexual man Jet set people

5) Technological environment: There are several tumultuous changes being wrought in technological forms which is transforming the way business is conducted.The changes are so rapid and sweeping those enterprises have found it difficult to keep pace.Several have fallen with the wayside for failing to keep with the changes.Major public sector undertaking in india which did not upgrade in time and closed their shutters are,ITI,HMT,and HTIF.On the other hand in the private sector hindustan motors,LML are examples whowere known as flag bearers,collapsed once they fell behindin the race for technology.Some of the major changes are as follows, Growth of information technology and biotechnology industries

Nano technology

Q.No.4.Ans:
Various benefits of having a MIS and resultant flow of marketing information are given below: 1) It allows marketing managers to carry out their analysis,planning implementation and control responsibilities more effectively. 2) It ensures effective tapping of marketing opportunities and enables the company to develop effective safeguard against emerging marketing threats. 3) It provide marketing intelligence to the firm and helps in early spotting of changing trends. 4) It helps the firm adapt its products and services to the needs and tastes of the customer. 5) By providing quality marketing information to the decision maker,MIS helps in improving the quality of the decision making.

Q.No.5.Ans:
If motivation is driven by the existence of unsatisfied needs, then it is worthwhile for a manager to understand which needs are the more important for individual employees. In this regard,Abraham Maslow developed a model in which basic, low-level needs such as physiologicalrequirements and safety must be satisfied before higher-level needs such as self-fulfillment are pursued. In this hierarchical model, when a need is mostly satisfied it no longer motivates andthe next higher need takes its place. Maslow's hierarchy of needs is shown in the following diagram: Maslow's Hierarchy of Needs Self-Actualization Esteem Needs Social Needs Safety Needs Physiological Needs

Physiological Needs Physiological needs are those required to sustain life, such as:

air water sleep nourishment

According to Maslow's theory, if such needs are not satisfied then one's motivation will arise from the quest to satisfy them. Higher needs such as social needs and esteem are not felt untilone has met the needs basic to one's bodily functioning. Safety needs Once physiological needs are met, one's attention turns to safety and security in order to be freefrom the threat of physical and emotional harm. Such needs might be fulfilled by: Living in a safe area Medical insurance job security Financial reserves

According to Maslow's hierarchy, if a person feels that he or she is in harm's way, higher needs will not receive much attention. Social Needs Once a person has met the lower level physiological and safety needs, higher level needs becomeimportant, the first of which are social needs. Social needs are those related to interaction withother people and may include: Need for friends Need for belonging Need to give and receive love

Esteem needs Once a person feels a sense of "belonging", the need to feel important arises. Esteem needs maybe classified as internal or external. Internal esteem needs are those related to self-esteem such asself respect and achievement. External esteem needs are those such as social status andrecognition. Some esteem needs are: Self-respect Achievement Attention Recognition Reputation

Maslow later refined his model to include a level between esteem needs and self-actualization:the need for knowledge and aesthetics. Self-Actualization Self-actualization is the summit of Maslow's hierarchy of needs. It is the quest of reaching one'sfull

potential as a person. Unlike lower level needs, this need is never fully satisfied; as one grows psychologically there are always new opportunities to continue to grow. Self-actualized people tend to have needs such as: Truth Justice Wisdom Meaning

Self-actualized persons have frequent occurrences of peak experiences , which are energizedmoments of profound happiness and harmony. According to Maslow, only a small percentage of the population reaches the level of self-actualization.

Q.No.6.Ans:
Difference between Consumer market and Business market Characteristcs 1. Demand 2. No. of customers 3. Location 4. Nature of buy 5. No. of buying roles 6. Negotiations 7. Promotion Consumer Market Direct Large Dispersed Personal Few Easy Advertising Business Market Derived Few Concentrated Profession Many Complex Personal selling

The differences stated above may not exacting and water tight divisions.Even in case of business making a purchase for a regular stationery iteamsthe responsible employee may adopt an individualistic and direct approach.Similarly industrial advertising may be effective.The differences lead to behaviour patterns which are also different.As an example,emotionplays a mojor role in a purchase decision for an individual in a consumer market but will hardly come in the business market.