MMPC 06 Free Solved Assignment
MMPC 06 Free Solved Assignment Jan 2022
1- A – Discuss your understanding of the term marketing with a suitable example. What is the concept of holistic marketing? Explain each of the components and their importance in the exchange process.
Ans- Marketing – Marketing refers to activities a company undertakes to promote the buying or selling of a product or service. Marketing includes advertising, selling, and delivering products to consumers or other businesses.
Some marketing is done by affiliates on behalf of a company. Professionals who work in a corporation’s marketing and promotion departments seek to get the attention of key potential audiences through advertising.
Promotions are targeted to certain audiences and may involve celebrity endorsements, catchy phrases or slogans, memorable packaging or graphic designs and overall media exposure.
THE TERM MARKETING MEAN
Marketing refers to the process of ascertaining consumer needs, converting them into products and services, and then moving the product or service to the final consumer segment with emphasis on profitability and customer satisfaction, and ensuring the optimum use of the resources available to the organization.
Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individuals and organizational objectives.
According to Philip Kotler, marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. MMPC 06 Free Solved Assignment
The author has considered marketing as a social process where interaction of people is an essential component of it. Through this interaction the persuasion for selling the products or services begins.
Thus marketing is purely purchase decision of the customer but through continuous marketing initiatives at different stages.
Marketing starts before the production of the goods and continues even after the selling of the products.
Thus it is assumed marketing is a continuous process. While the activities pertaining to identification of the needs, wants and demands of the customer,
then designing of a suitable product to meet the needs, giving name to the product and converting it to a brand by communicating it to the customers.
The Holistic Marketing Concept: A business may choose to use a holistic marketing approach when they are under the strong belief that all aspects of its marketing strategy are interrelated.MMPC 06 Free Solved Assignment
Development of marketing programs such as the marketing mix, the design of marketing campaigns, and the implementation of marketing processes are not isolated business functions under a holistic marketing concept.
Instead, the business makes marketing decisions and implements campaigns based on reaching a common organizational objective.
The process of holistic marketing takes into account the considerations of stakeholders, customers, employees, suppliers, and the community as a whole when creating and implementing marketing strategies.
Holistic marketing has gained in popularity due to the high saturation rate and increased competition in the marketplace.
Businesses realize that they can set themselves apart through a holistic marketing approach, while at the same time creating synergy among departments in the organization.
The new marketing realities confronting the marketers at the turn of two decades of the 21st century are diverse and challenging. MMPC 06 Free Solved Assignment
The pace of technological changes, the impact of the global economy, evergrowing economic inequalities, climate change, environmental deterioration, public unrest, and crony capitalism became new realities of the world.
The outbreak of COVID-19 at the beginning of 2020 compelled the organisations to look at the marketplace from a different perspective in an effort to reorient their strategic thinking.
Against this backdrop the holistic marketing concept developed by Philip Kotler et al. assumed significance.
The holistic marketing concept is based on the development, design, and implementation of marketing programmes, processes, and activities that acknowledge a broad and integrated
Relationship marketing: The purpose of Relationship marketing is to develop mutually satisfying long-term relationships with the main stakeholders namely customers, employees, marketing partners (such as suppliers, distributors, and agencies), and members of the financial community (such as shareholders and investors).
All such enduring relationships would create a distinctive asset for the company known as a ‘marketing network consisting of the above-mentioned key stakeholders.
It is based on a simple operating principle: build an effective marketing network of long-term relationships with key constituents, and profits will follow.
For example, the Swedish furniture maker Ikea has a worldwide base of loyal customers. When the company changed the font in their ubiquitous catalogue, Ikea lovers took to the Internet to air their unhappiness.
Rather than alienate their customers for a trivial reason, Ikea changed the font back in the next catalogue. MMPC 06 Free Solved Assignment
Integrated marketing: Integrated marketing aims at mixing and matching marketing activities to maximise their individual and collective efforts.
David Packard of Hewlett-Packard (hp) once observed that “Marketing is too important to be left to the marketing people.”
Organisations, for-profit as well as not-for-profit, achieve marketing success only when each of the departments works together to achieve customer goals
It means designing the right product by R&D, providing the right amount of funding by the finance department, procuring the right materials by purchases, making the right product by the operations department, and measuring profitability in the right way by accounting people.
Peter Drucker long ago made a profound observation:
Because the purpose of business is to create a customer, the business enterprise has two – and only two – basic functions: marketing and innovation.
Marketing and innovation produce results, all the rest are costs, Marketing is the distinguishing, unique function of the business.
Uber, the ridesharing app is, for example, redefining urban mobility across the world. When Uber entered India it launched an integrated marketing campaign with the idea of Apnapan (means affinity) as its core theme. MMPC 06 Free Solved Assignment
The campaign aimed to build everyday brand relevance and reframe personal mobility. Uber’s communication strategy was co-created with the help of amazing stories of heartwarming experiences of riders and driver-partners that took place across the country.
Integrated marketing also involves developing an integrated channel strategy. Each channel option should be assessed in terms of its impact on sales and brand equity.
Internal marketing: Marketing organisations pursue an internal marketing approach in an effort to put their employees first.
The better a company treats its employees, the better it will perform in providing excellent service to customers. In this sense, the employees are treated as ‘internal customers’ of a company.
External marketing focuses the company’s strategy on the customer in marketplace; internal marketing is aimed at the internal customer (that is, employees) within the company.
Thus as an element of holistic marketing, internal marketing is aimed at the task of hiring, training, and motivating able employees who want to serve customers well.
Performance marketing: Companies need to understand the broader role played by their marketing activities or strategy in generating financial and non-financial returns to business and society at large. MMPC 06 Free Solved Assignment
In addition to sales revenue, market share, customer satisfaction, quality leadership parameters of performance, the company’s marketing performance is often measured from the perspective of the legal, ethical, social, and environmental dimensions.
Components and their importance in the exchange process.
Primarily the term exchange means “giving or receiving something in return for something else” i.e. in marketing parlance an individual or a customer will simply obtain the firms product or service offering to satisfy his need or want in exchange of money thus leading to exchange process between two entities
For example if a person hires a Uber service for his travel from destination X to y and the money paid as fare in lieu of the trip is an exchange process.
This exchange process can extend into strong relationship marketing and we enter into exchange relationships all the time.
Through relationship marketing we build a long-term association with the customer. In the above example of Uber,
if the customer is satisfied by the service then we may plan to use the same services in future as well and intend to become a loyal customer with Uber.
While Uber by way of delivering value to customers, a relationship with customers is developed. MMPC 06 Free Solved Assignment
Thus marketing is earning profit by building relationship with customer through satisfying their needs and wants. The same explanation is applicable for a product as well.
We can see that marketing, as per this definition, starts with a ‘Product’. This is very common idea among many people, for example, in advertising agencies, as they normally are required to advertise to sell a product, which already exists.
Similarly, salesmen are also given products and asked to sell them. Therefore, to them marketing often, starts with a product. However, this is only a narrow view of the concept of marketing,
Q1- B – Why and how Segmentation, Targeting and Positioning (STP) concept is used in Marketing? Discuss will an illustration.
Ans- Segmentation, Targeting and Positioning (STP) concept is used in Marketing
Segmentation- Market segmentation is a marketing term that refers to aggregating prospective buyers into groups or segments with common needs and who respond similarly to a marketing action.
Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another.
Targeting and Positioning (STP)-STP Marketing stands for segmentation, targeting and positioning. STP Marketing makes the process of marketing easy. It is very easy to understand and apply in business. MMPC 06 Free Solved Assignment
The main goal of STP Marketing is to attract the customer and not only to attract the customer but also getting the right customer who will be interested in our product.
First, we will divide the group into segments and then we will target that segment who will be interested in our product and then we prepare our product according to the needs of the targeted segment
How Segmentation, Targeting and Positioning (STP) concept is used in Marketing
TARGETING A target market is defined as a set of buyers sharing common needs or characteristics that the company decides to serve.
It is very important to select the target market to develop a suitable marketing strategy.
Every marketing strategy involves marketing expenditure and the return on a market program can only be identified if we are able to know the target market for which the marketing program is targeted.
Hence, an understanding of the target market and measurement of their attractiveness is a key decision in marketing.
The next challenge for the marketer is to select one or more segments to target with a right blend of marketing mix elements.
Both general factors which one uses to evaluate any economic opportunity and the factors specific to the situation should be considered in evaluating segment options against these criteria. MMPC 06 Free Solved Assignment
General factors: The following are some important general factors that one should consider judiciously.
Company thrust: While segmenting the market the firm needs to identify the requirements for success in the identified target market.
Next, it must determine what particular business system consisting of marketing, production, finance, personnel, etc. will be needed to meet the requirements for success in that segment.
As far as possible the firms thrust should be such that it gives the company a key advantage in that segment
Size and growth potential: In addition to the present size of the target market the firm should also ascertain the future growth potential of the said target market.
The current market demand by itself may prove misleading. The measurement might also create its own problems.
Investment needed: Financial outlay required for tapping a particular target market is another factor to consider and care should be taken to ensure that both entry costs and costs associated with building market share have been included
Profitability: The question of profitability is associated with investment decision. To calculate it we have to estimate both future sales and costs involved in the concerned segment. MMPC 06 Free Solved Assignment
Besides, it is necessary to also consider the value-added to the product that is to be marketed in that target segment, for a low value-added product makes profitability more hazardous.
Risk: Risk is unavoidable in business. The usual risks associated with the extent to which a particular target market would respond. But these are not the only ones.
Other risks like the new product taking away part of the market share from the existing product(s) of the company in that target market need also be considered and monitored.
Competition: The selection of target market also implies indirectly selecting the competitors with whom the company will compete.
Another important point to note in this context is that segment may be large but may already be served by several well established competitors.
The question naturally would be whether one would like to enter such a segment should be weighed in terms of cost-benefit analysis and then take a decision.
Specific segmentation factors The specific segmentation factors that you need to consider are as follows: MMPC 06 Free Solved Assignment
Segment durability: Remember, segments based on fads and fashions are of a short duration that is their life cycles are ephemeral and your plans to tap such segments must take this into account.
Besides, you can’t think of making substantial investments in such ventures from the long-term point of view.
Mobility: Mobility means the movement in and out of a segment of members of a target group.
If the mobility rate of target group members is high in respect of a certain product, say, hair oils, the company in order to keep its sales stable would have to attract new users to its product.
Visibility: visibility refers to the extent to which the want of a target market or segment is distinctive.
If what is sought by the members of that segment is perceived as very different from what is sought in other segments then the segment “loyalty’ will be greater but those in other segments may regard that offering as very different and something which is not meant for them.
Highly visible segments however, are likely to be more stable than other segments of a market.
Accessibility: Those in the segment or the target market should be directly reachable through established communications and distribution channels.
If that particular segment cannot be reached then the entire exercise of market segmentation will be futile.MMPC 06 Free Solved Assignment
For evaluating segment options on the basis of these factors, please remember that you will have to weigh these factors in the context of your specific situation.
MARKET POSITIONING :
Once the market has been segmented and attractive segments have been identified, the next task is to work within a targeted segment to position the product offering in the minds of the consumers for adoption and derive customer satisfaction.
We shall discuss the importance of developing a product and brand positioning.
Product Positioning :
Product positioning is the creation of a clear image in the minds of consumers within the targeted segment about the nature of the product and the benefits to be gained from purchasing the product.
Positioning is the complement of segmentation. That is, segmentation identifies those segments of the population that will act similarly and develops products to meet each segment’s needs whereas, positioning in conveys information about the products back to the segments for which they are appropriate. MMPC 06 Free Solved Assignment
It is the position in the perceptual space of the consumer’s mind that the product takes in relation to competitor’s products, which is often verbalized by customers on certain attributes.
Product positioning depends on market structure, competitive position of the firm and the concepts of substitution and competition among products.
According to Al Ries and Jack Trout, positioning is the act of designing a company’s offering and image to occupy a distinctive place in the minds of the target market… Positioning is what you do to the mind of the prospect.
You position the product in the prospect’s mind.” Therefore product positioning should be assessed by measuring consumer’s or organisational buyer’s perceptions and preference for the product in relation to its competitors.
Brand positioning involves implanting the brand’s unique benefits and differences in customer’s mind.
Requirements and Importance of Positioning :
There is a high decibel of marketing communication aimed at consumers of today.
They are exposed to various level and type of communication through multiple media
like newspaper, television, radio, internet and unconventional media like fairs, festivals, exhibitions, events and outdoor media. MMPC 06 Free Solved Assignment
But the ability of the consumer to evaluate the information and remember all of them is limited by two factors.
The consumer at a particular point of time pursues one consumption goal which makes other information redundant for him.
Secondly, the ability of the consumer to process all the information is limited due to high level of distortion and poor retention rate in consumer’s memory box.
As a result consumers are overloaded with information in market place but consumer’s intention and ability to process this information is limited.
Thus to simplify the buying process and reduce the mental tension consumer’s group information about competing products, and evaluate them on perceptual attributes depending on perceived quality to create distinct position in their mind.
STP stands for Segmentation , Targeting and positioning. STP plays an important for role to get to your right customer. All three (segmentation, targeting and positioning) are tools to align your products with the right customers.
Segmentation : Classifying your customers on some basis like demographically, behaviour , geographically etc MMPC 06 Free Solved Assignment
Targeting : Marketing to a particular segment of the market/group of customers
Positioning : Basically it means building a brand image in the mind of the customer
Q2- A – What is a Product? Discuss the various classifications of products with suitable examples. Elaborate the importance of Branding and Packaging decisions with respect to an FMCG product proposed to be launched in the Indian market.
Ans – What is a Product- A product is any item or service you sell to serve a customer’s need or want.
This definition might seem simple, but as you will learn in this guide, there is a lot more to a product than its at-first-glance attributes and what the customer thinks they are paying for.
A product can be physical or virtual. Physical products include durable goods (such as cars, furniture, and computers) and nondurable goods (such as food and beverages). Virtual products are offerings of services or experiences (such as education and software).
A product may be a hybrid and include both physical and virtual elements. Hybrid products are becoming more common, as traditionally analog products are incorporating digital technology as a way to better reach and serve customers.
PRODUCT CLASSIFICATION MMPC 06 Free Solved Assignment
Products can be classified on the basis of such characteristics as durability, tangibility and usage (consumer or industrial). Accordingly, the products may be classified on the basis of usage into two types:
A. Consumer Products
B. Industrial Products
Consumer Products : Consumer goods are those that are used ultimately by consumers or households and in such forms that they can be used without any further commercial processing.
These can be classified into three groups on the basis of durability and tangibility:
i. Consumer Non-durable goods
ii. Consumer Durable goods
i. Consumer Non-durable goods : Non-durable goods are tangible goods that are normally consumed in one or few uses. They get depleted with consumption.
These are generally purchased frequently, consumed quickly and withou making much effort or as a habit.
There are repeat purchases once the consumer is satisfied. Marketers need to ensure easy availability, price inexpensively and advertise heavily to induce purchase and as a result build brand preference and brand loyalty. MMPC 06 Free Solved Assignment
Examples include soap, salt, sugar, soft drinks and other daily use products
ii. Consumer Durable goods : These are tangible goods that survive many uses. They require more personal selling and service, command higher margins, and require after sales service and more seller guarantees.
Examples include refrigerators, air conditioners, Television sets, clothing and machine tools etc.
iii. Services : Services are intangible. perishable, variable, and in-separable products. They normally require more quality control, supplier credibility and adaptability.
Examples include legal advice, personal care (beauty care etc.), management consultancy, airlines, banks, hotel and hospitality services, chartered accountants, medical practitioners, insurance providers and non-profit organizations like museums and charities etc.
Consumer goods can also be classified on the basis of shopping habits. Accordingly these can be divided into following categories:
. Convenience goods
. Shopping goods
. Specialty goods
. Unsought goods MMPC 06 Free Solved Assignment
Convenience goods : Consumers usually purchase convenience goods frequently, immediately and without spending much effort.
Examples include soaps, newspapers and tobacco products. This category of goods can also be sub-divided into staples, impulse goods and emergency goods.
Staples are purchased by consumers regularly: thus a buyer may consume toothpaste, confectioneries such as biscuits and snacks routinely.
Impulse goods are purchased without planning and search effort. Such purchase decisions are sudden in a spur of a moment. Examples are chocolates, ice creams, and potato chips etc.
Emergency goods are purchased when a need is urgent. Woolen clothing during winters and rain coats and umbrellas are examples of emergency goods.
Shopping goods : Purchases of shopping goods involve considerable time and effort on the part of consumer.
Consumers typically compare and contrast various available options on bases such as suitability, quality, price and style etc. during the purchase process. Examples include furniture, clothing, automobiles and major appliances
Specialty goods : These goods have unique attributes or brand identification for which a sufficient number of buyers are willing to make special purchasing effort.
Examples include branded watches, luxury goods, special music systems, home theatre, branded men’s suits etc. MMPC 06 Free Solved Assignment
Unsought goods : These are goods about which buyers are not aware or normally do not think of buying. Typical examples include reference books, insurance and encyclopedias. Unsought goods require intense advertising and personal selling
Industrial goods : Industrial goods are primarily sold to business and industrial organizations for use in manufacturing other goods or for providing some service.
These include materials, material parts and components. machinery and consumable items etc.
Industrial goods can be classified in terms of how they enter the manufacturing process and their relative costs. There are three groups of industrial goods:
a. Materials and parts
b. Capital items
c. Supplies and business services
Materials and Parts : Materials and parts are industrial goods that enter the manufacturer’s product completely. They fall into two classes, raw materials and manufactured materials and parts.
Raw materials in turn fall into two major groups: farm products (Examples include food grains, fruits, vegetables and cotton etc.) and natural products (metal and mineral ores, crude petroleum, fish etc.) MMPC 06 Free Solved Assignment
Farm products are supplied by many producers who turn them over to intermediaries who in turn provide assembly, grading, storage and transportation and selling services.
Since they are perishable in nature, special marketing practices are required to sell these goods. Little advertising and promotional activity is required due to commodity character of farm products.
Natural products are limited in supply. They have great bulk and low value and must be moved from producer to user.
Since users depend on these materials, long term supply contracts are common Price delivery reliability is the main factors influencing the selection of suppliers.
Manufactured materials and parts fall under two categories: component materials (Examples are iron, yarn, cement and wire etc.) and component parts (electric motors, pneumatic cylinders, tires, casting and forgings etc.).
Components are processed further while component parts enter the finished product with no further change in form.
In case of component materials, price and supplier reliability are key purchasing factors while in case of material parts, price and service are the major considerations’ branding and advertising are less important.
Capital Items : These are long-lasting goods that facilitate developing and managing the finished product. MMPC 06 Free Solved Assignment
They fall under two categories: installations and equipment.
Installations consist of buildings, factories, offices, and utility equipment like air compressors, boilers, generators, powerful computer servers and elevators etc.
Installations are major purchases and are procured directly from the producers. Direct selling is involved and is backed up by after-sales service while advertising is less important.
Equipment comprise of portable factory equipment and tools such as hand tools and lift trucks etc. and office equipment such as desk tops, laptops and copier machines etc.
Quality, features. price and service are major purchasing considerations. Sales-force is more important than advertising
Supplies and business services are short term goods and services needed for development and management of the product.
Supplies are of two kinds maintenance and repair items (Examples paint, nails etc.) and operating supplies (Examples lubricants, coal, writing paper etc.).
These are normally sold through intermediaries. Price and service are the main purchasing considerations. MMPC 06 Free Solved Assignment
Branding and Packaging decisions with respect to an FMCG product
BRANDING DECISIONS :Having an appropriate brand has emerged as the most important activity in the area of marketing of products especially consumer products.
Several decisions need to be taken, though not simultaneously, with regard to brand selection and its use. These are:
1) Should the product be branded at all?
2) Who should sponsor the brand?
3) What quality should be built into the brand?
4) Should each product be individually or family branded? Should other products be given the same brand name?
5) Should two or more brands be developed in the same product category?
6) Should the established brand be given a new meaning (repositioning)?
Packaging decisions : In modern days, Product Packaging has become an important part of product management. With increasing, competition corporates are thinking of innovative packaging.
Different products like food, cosmetics, toiletries, personal care are coming with more innovative packaging.
Because packaging become one of the effective marketing tools to sell the product Nowadays packaging is acting as a value addition to product & greater benefit to customers through packaging. Following are the main decision in packaging
FMGC product Some of the major strategies adopted by FMCG companies for making their brands outstanding compared to competitions are as follows:
(i) Multi-brand Strategy (ii) Product Flanking (iii) Brand Extensions (iv) Building Product Lines (v) New Product Development (vi) Product Life Cycle Strategy (vii) Taking advantages of wide distribution network. MMPC 06 Free Solved Assignment
The success of an FMCG depends greatly on its marketing strategy. An FMCG marketer pursues a wide combination of strategies.
For instance, when prices are competitive, the company would use an extensive distribution network, design suitable advertising and sales promotion schemes from time to time.
Multi-brand Strategy: A company often nurtures a number of brands in the same category. There are various motives for doing this.
The main rationale behind this strategy is to capture as much of the market share as possible by trying to cover as many segments as possible, as it is not possible for one brand to cater to the entire market.
Product Flanking: Product flanking refers to the introduction of different combinations of products at different prices, to cover as many market segments as possible.
It is basically offering the same product in different sizes and price combinations to tap diverse market opportunities.
Shampoos in small sachets, Pan masala in small pouches and premium detergents (Tide, Aeriel etc.) in small pouches are examples of this strategy.
Building Product Lines: Hindustan Lever has added product lines one after another starting from Lifebuoy, Lux, Liril, Dove etc. MMPC 06 Free Solved Assignment
Similarly, Britannia Industries have related biscuits as differed product lines. Companies add related new product lines to give consumers at the products they would like to buy.
New Product Development: Proctor and Gamble is shown as the number one company in the world reputed for new products development. Companies that fail to develop new products would expose themselves to great risk and might face stagnation in future.
Product Life Cycle Strategy: An FMCG has short life cycle whereas an industrial product has long PLC. According to PLC, companies plan to develop new products after abandoning the old product which has experienced the decline stage of PLC curve
Taking advantages of wide distribution network:
A very simple way of increasing an FMCG company’s market share is by developing a strong distributions network, preferably in terms of more locations.
An extensive distribution system can be developed over time, or the company may acquire another company which has an extensive distribution network. Coca-Cola and PepsiCo’s wide distribution network systems have made them market leaders.
Q2- B- Discuss the concept of Product Life Cycle (PLC). Explain the various stage of PLC with a consumer durable example of your choice.
Ans- THE PRODUCT LIFE CYCLE CONCEPT-
The term product life cycle refers to the length of time a product is introduced to consumers into the market until it’s removed from the shelves.
The life cycle of a product is broken into four stages—introduction, growth, maturity, and decline. MMPC 06 Free Solved Assignment
A company which introduces a new product naturally hopes that the product will contribute to the profits and provide consumer satisfaction for a long period of time. This however, does not always happen in practice.
So, progressive organizations try to remain aware of what is happening throughout the life of the product in terms of the sales and the resultant profits.
The Growth Stage- In case the product launched is successful, the sales must start picking up or rise more rapidly. The next stage is then reached which is known as the ‘growth stage’. Here the sales would climb up fast and profit picture will also improve considerably.
This is because the cost of distribution and promotion is now spread over a larger volume of sales.
As the volume of production is increased, the manufacturing cost per unit tends to decline. Thus, from the point of view of product strategy, this is a very critical stage.
The Maturity Stage- It is too optimistic to think that sales will keep shooting up. At this stage, it is more likely that the competitors become more active.
In case your product is a novel one, by now competition would have come out with a similar product in the market to compete with yours.
Therefore, the sales are likely to be pushed downwards by the competitors while your promotional efforts would have to be increased to try and sustain the sales. Thus the sales reach a plateau. MMPC 06 Free Solved Assignment
This is called the ‘maturity stage’ or ‘saturation’. At this point it is difficult to push sales up. With regard to the ‘profit’ picture, the profits are likely to stabilize or start declining as more promotional effort has to be made now in order to meet competition.
Unless of course, you have the largest market share with your product and it needs no extra push in the market.
The Decline or Obsolescence Stage- Thereafter the sales are likely to decline and the product could reach the `obsolescence’ stage. Steps should be taken to prevent this obsolescence and avoid the decline.
This decline that generally follows could be due to several reasons such as consumer tastes and preferences, improvement in technology and introduction of better substitutes.
This is the stage where the profits drop rapidly and ultimately the last stage emerges. Retaining such a profit after this stage may be risky, and certainly not profitable to the organisation.
MARKETING MIX AT DIFFERENT STAGES OF PRODUCT LIFE CYCLE
The 4Ps of marketing strategy in relation to these different stages. Before we do that, we would like you to apply your mind and give suggestions about what should be emphasised in connection with the 4 Ps at different stages.
At the introductory stage, we have to increase and thus spend a lot on physical distribution and promotion. This is because we have to create an awareness and acceptance of our product.
We must also increase its availability. Very often in India, it is noticed that a product is advertised but is not available at the distribution/retail outlets.
This is a waste of promotional expenses. We must make optimum use of the available resources of the organisation. Thus distribution should be arranged before the product is launched.
In any case, in these two areas substantial amounts would have to be spent. We have to also counter the reluctance of customers to change their established patterns and make them purchase our product, particularly if it is of a novel and a new product.
As against this, if it is a novel one, people may even buy it out of sheer curiosity’.
Next in the growth stage when the sales shoot up and we are satisfied with the profit generated by the product, competitors will now enter the market and perhaps offer new product features.
Therefore, we may have to think of improving our product so that we do not reach the ultimate decline’ stage too quickly. The promotional expenditure is maintained at the same level or is raised slightly in order to meet competition.
We now come to the next stage called the maturity stage. This stage generally lasts longer than the other stages and poses problems for the management in maintaining the sales level.
Actually,rate of the sales in case of such matured products. The decline can be arrested by improvements in the product and promotion.
We should, however, at this time seriously think in terms of a new product, mix, that is, the elimination or redesign of the current product within the near future.
Finally, the decline stage catches up. The decline may be slow or rapid. It may be due to better substitute products, better competition, technological advances with which we have not kept up and several other reasons. MMPC 06 Free Solved Assignment
Such a product now proves expensive for the organisation. One must, therefore, be willing to consider the elimination of such marginal or unprofitable products, Eventually, the last weapon is to reduce the price.
This is dangerous because this is time when extra promotional effort is required to be put in to prop up the product’s sales. Reducing the price may soon land the company in a loss situation.
Q3- A – Distinguish Marketing Communication with Integrated Marketing Communication. How do they differ in terms of their approach in promotional decisions? Explain with an example of any service offering of your choice.
Ans – Marketing Communication
The Marketing Communication refers to the means adopted by the companies to convey messages about the products and the brands they sell, either directly or indirectly to the customers with the intention to persuade them to purchase.
In other words, the different medium that company adopts to exchange the information about their goods and services to the customers is termed as Marketing Communication.
The marketer uses the tools of marketing communication to create the brand awareness among the potential customers, which means some image of the brand gets created in their minds that help them to make the purchase decision.
As explained in the previous section, in any communication process several elements and steps are involved.
In the context of marketing communication, a manufacturer or company or brand is the source (or sender), while prospective or existing consumers are at the receiver of the communication. MMPC 06 Free Solved Assignment
Message is the product information or details which are to be communicated to the target group in a creative and interesting way.
The channel is various media options such as newspapers, TV, radio, magazines, hoardings etc. which can be used to reach the target audience.
The success of a marketing communication activity depends on a company’s ability to convey the message effectively in a manner in which the customers should understand and interpret the intended message.
A marketing communication is considered effective if it achieves its objectives such as increased sales, improved brand recall, increased awareness etc. This is equivalent to the feedback, as discussed in the process of communication.
Having accepted as one of the important ‘P’s of marketing mix, marketing communication is synonymous to Promotion and the elements include (Advertising, Publicity, Sales Promotion and Personal Selling) which are employed by the firm for the purpose of awareness creation, image building, and for sales all the four methods constitute promotional mix elements.
Every one of us does come across various promotional mix elements on a daily basis. When we read newspaper in the morning or watch news channel or watch our favorite TV show or watch music videos on YouTube,
or visit a nearby shop or store to buy some product, when we go to a shopping mall for shopping or entertainment, the hoardings on the street, wall paintings, banners, posters while traveling by road; MMPC 06 Free Solved Assignment
we come across these elements of promotional mix viz. Advertising, Publicity, Public Relations (PR), and Sales Promotion messages etc.
INTEGRATED MARKETING COMMUNICATION
In simple words, Integrated Marketing Communication (IMC) brings together all the tools of marketing communication to direct consistent messages to a firm’s consumers.
It is the strategic integration of all the elements of promotional mix and other marketing activities (such as event marketing, sponsorships, BTL activities, digital marketing etc.) to send consistent messages to the buyers of a company’s products or services.
According to Smith, Berry and Pulford (1999), IMC is: “The strategic analysis, choice, implementation and control of all elements of marketing communications which efficiently, economically and effectively influence transactions between an organization and its existing and potential customers, consumers and clients.”
It is strategic because it is affected by the way in which an organization aims to achieve its long-term goal.
An IMC process carefully chooses, execute and manage various elements to influence customers’ buying behavior”. MMPC 06 Free Solved Assignment
IMC may also be defined as a process that involves planning, conception, integration and implementation of a variety of marketing communication activities to influence the behavior of the target group. Let us understand it with a simple example.
Assume that a company manufactures gearless scooters and has recently launched a new model by the brand name ‘Drivo’. You happen to see their full-page advertisement in the morning newspaper.
On your way driving to your office, you notice a big hoarding while waiting at a traffic signal. Further, while surfing your social media account during lunch at office, you come across a pop-up ad of ‘Drivo?.
While leaving office for home, you see that a guy is sitting beside a canopy tent which is installed in the parking of your office building.
On close observation you find the newly launched ‘Drivo’ inside the canopy tent. Finally, at home, while watching cricket . match on TV, you see a 30-sec advertisement of ‘Drivo’ during commercial break.
Marketing vs integrated marketing communication (IMC) Marketing and IMC are two terms that are used frequently when developing the marketing strategy of a company.
Marketing is a process carried out by companies to sell products and services and to make sure that the customers are satisfied with the products and services.
IMC is the acronym for “Integrated Marketing Communications”, which is an integration of all the marketing tools, methods and approaches used by companies to ensure that a coherent message is presented to the customers that has the greatest influence on the minds of the customers. MMPC 06 Free Solved Assignment
Meaning– Marketing refers to the various activities that are carried out to identify a target market and promote products and services in that market.
Integrated marketing communications refers to the integration of the various promotional messages and activities undertaken by a company so as to ensure that a consistent message is delivered to the customers.
Scope- Marketing is an entire field and the marketing mix consists of four key elements, which are known as the 4Ps of marketing, i.e. product, price, place and promotion.
On the other hand, integrated marketing communications pertains to just the promotional mix. Hence, it can be said that integrated marketing communications is one of the elements of marketing.
Objective- The aim of marketing is to create awareness of a brand and generate sales. IMC, on the other hand, aims to integrate the various promotional tools and approaches used by a company to ensure that consistent messages are delivered that creates a more powerful impact on the minds of the consumers.
TOWARDS PROMOTIONAL STRATEGY– Promotion has its own unique place in the marketing communications mix of a firm. The question facing marketers, therefore, is not which promotion method to use to meet today’s complex marketing tasks.
Rather the real question is which promotion method should be emphasised, and the level of intensity one should use and how it can be integrated with the other promotional methods.
Decisions on determination of promotion mix take us back to the promotion objectives which must emanate out of the marketing objectives of the firm.
A promotional strategy aims at accomplishing the promotion objectives in the allocated funds and within a specific period of time. MMPC 06 Free Solved Assignment
Promotional objectives, generally speaking, relate to sales and the marketing communication tasks required to be performed as per the needs of the product and the market scenario.
Expressed in measurable terms these can be put as: increasing sales, improving market share, creating product awareness and comprehension,
developing positive attitude of the public towards the product, building favourable image of the product, or gaining competitive advantage. In this contest Leonard M. Lodish suggests`vaguely right’ criteria
The extent of emphasis to be placed on the different promotion methods is determined by several variables.
Firstly, it is dependent on the promotional objectives. Secondly, on the characteristics of the target public their psychology, and the allocated funds.
For example, a marketer of consumer durables in any metropolitan city may use different means like advertising to create awareness and build comprehension.
It would also require publicity which could be through press release on the contest technology backing his product.
Sales promotion through demonstration, P.O.P. and offer of introductory price to encourage intentions would also be used and, definitely, personal selling to overcome objections offer conviction and precipitate purchase action would complete the promotion picture.
Further, as revealed by Kenouth G. Nardy, for achieving the set objectives for example, loading the consumer with larger supplies, and some can see that it requires all the methods of promotion be approached simultaneously in terms of objectives to be achieved.
Attaining synergistic advantage arising out of the use of different promotional methods is the hall-mark of an effective promotional strategy.
SALES PROMOTION OBJECTIVES-
As a powerful method of sales promotion with a capability to complement and supplement the advertising function of marketing, sales promotion helps marketers realise a variety of objectives.
These objectives could relate to the promotion of sales in general, or to a specific As a powerful method of sales promotion with a capability to complement and supplement the advertising function of marketing, sales promotion helps marketers realise a variety of objectives.
These objectives could relate to the promotion of sales in general, or to a specific increase sales in general, and focusing on new uses, increased usage, upgrading unit of purchase, winning sales of fading brands etc.)
make the sale of slow-moving products faster stabilise a fluctuating sales pattern identify and attract new customers launch a new product quickly educate customers regarding product improvements reduce the perception of risk associated with the purchase of a product motivate dealers to stock and sell more (including complete product line)
attract dealers to participate in manufacturer’s dealer display and sales contests obtain more and better shelf space and displays bring more customers to dealer stores make goods more faster through dealers improve manufacturer-dealer relationship motivate sales force to take the achievement higher than targets attract sales force to give desired emphasis on new accounts,
latent accounts, new products, and difficult territories reward salesforce for active market surveillance and for rendering superior customer service put power into the sales-presentation counter competitors sales-promotion and marketing efforts provide punch to the company’s advertising efforts build goodwill.
Companies may use anyone or a combination of the above objectives in varying form to suit the product-market needs of their product.
What is of significance is that the sales promotion objectives set to be accomplished must be integrated with the promotion and marketing objectives pursued by the company.
STEPS IN PLANNING SALES PROMOTION PROGRAM
With growing competition at the marketplace and the need to realise full benefits of this unique method of promotion it is required that the perfunctory approach used in its management is stopped forthwith and the sales promotion function’ is managed professionally.
Systematic planning of this function should initiate the managerial process. The following steps are suggested for effective planning and management of the sales promotion function.
The first step is to assess and analyse the present situation of the brand in terms of market share, major competitors, and brand performance of brands users, non-users and lapsed users.
This benchmark should then be related to the market size and the potential estimated. It will now pave the way for determining the role of sales promotion in effecting the desired change in the market share of the brand.
The outcome of this exercise will be the availability of desired information to set measurable and attainable goals:
After the goals for sales promotion of the brand are set, the second step deals with the identification of the alternative schemes, and the selection of the most appropriate sales promotion scheme(s), capable of accomplishing the goal set, within the available budget.
The third step relates to incorporating creativity into the scheme to be offered. This is, making the scheme novel, attractive, and challenging from the viewpoint of its target group i.e. consumer, trade or salesforce.
The fourth step relates to legal validity of the sales promotion scheme to be offered. For example, before a consumer contest can be offered permission from the licensing authority of a State, usually,
the Collector of the District is required under the Prize Competition Act, 1955. Competitive Commission of India (CCI) is the chief national competition regulator in India.
It is a statutory body within the Ministry of Corporate Affairs and is responsible for enforcing The Competition Act, 2002 in order to promote competition and prevent activities that have an appreciable adverse effect on competition in India.
The fifth step covers primary decisions relating to timing and duration of the schemes to be offered, location-wise selection of dealers, and conviction of the trade and sales force about the appropriateness of the scheme.
Q3- B Discuss the role of Distribution function. How does distribution add value to the marketing effort? Explain with an example..
Ans- role of Distribution function- distribution management can be defined as a combination of all activities which facilitates movement and co-ordination of supply and demand in creation of time, place and possession utility in goods.
It is the art and science of determining requirements, obtaining them, distributing them and finally maintaining them in an operationally prepared condition.
Therefore, the broad range of activities concerned with the efficient movement of finished products from the end of the production line to the consumer and also the movement of raw materials from the source of supply to the beginning of the production line, fall under the domain of Distribution Management
Through distribution activities a company ensures that a sequential flow of products and goods from the source of raw material through the production operation is made available to the final customer.
This involves a sequential flow of procedures, systems and activities which are designed and linked to facilitate and monitor the movement of goods and service from the source to the consumer.
Distribution add value to the marketing effort- While “buying direct” from the manufacturer or OEM may seem like a good way to cut out the middleman and reduce costs,
it almost always proves to be far more expensive to do so. Distributors’ normal functions of time, place, utility and services are just the start when calculating this value equation.
For distributors, product is normally in stock locally and able to be shipped quickly and efficiently.
They are also able to break bulk packages and offer just-in-time delivery, often taking orders late in the night for next day delivery with their own vehicles.
Additionally, distributors can provide you with the optimal solutions for your applications, rather than simply replacing “like for like”, as manufacturers tend to do.
This allows for the evaluation of multiple options, often times resulting in a better-performing or lower-cost alternative.
after you purchase a product from a distributor, you are inevitably going to need to perform regular maintenance for the application and lifecycle.
Items may need to be aligned, lubricated, and properly fitted to ensure long life — another service that your local distributor and representative can perform in order to ensure optimal plant performance
Then, there’s the value of the local support that your representative provides by visiting your plant and reviewing your application.
Your rep’s years of industrial experience and his or her knowledge of thousands of applications will provide you with valuable insight that can save you money down the road.
Distributors also provide many value-added services including part configuration and modification, kitting and assembly, customization, painting or resizing services.
Using its network of manufacturer lines, sources and partners, you have access to a wide variety of solutions in one single source.
Because you have chosen to do business with one vendor for all of your industrial part needs, you will begin to see transactional savings such as:
One freight charge
Leveraging your spend
Online account management
Support from a dedicated customer service representative, sales management and outside sales representation
There is a reason why distribution is a multi-billion dollar industry. It is because manufacturers need distributors to help bring and apply their products into the market.
Without this business partnership, they are unable to support the needs of thousands of plant locations.
Manufacturers are the best at producing their products and standing behind the quality of their work.
While, on the surface, it may seem efficient to purchase directly from the factory, the savings often never materialize and the costs and risks rise significantly.
Put your local distributor to the test to show how they can bring you the value you need to improve your plant operations.
CHANNELS OF DISTRIBUTION
Distribution channels are the methods by which companies deliver products and services to customers and end users.
Some businesses sell directly to their customers, while others might use a retailer or wholesaler to serve as an intermediary.
Companies may also use agents or brokers to facilitate the movement of products to distributors that sell those wares to the customer.
At the beginning of this unit we had discussed the examples of “Classmate” notebooks. The company has chosen an extensive network of dealers and retailers to reach you.
When the business is on a small scale like a local sweet shop, the customers can directly go and purchase from the shop.
In such cases, the business and the customers are in close proximity. Suppose this sweet shop expands, and starts making other products, it would require a larger customer base.
These customers might not be in close range of the exact shop. Their product might be sold through someone to customers who are residing far off. This “someone” becomes an intermediary.
Haldiram is one such sweet company which has gone on such a large scale and expanded its business that now it has various ways/channels to reach the customer more conveniently.
Philip Kotler defines channel of distribution as “a set of independent organisations involved in the process of making a product or service available for use or consumption”.
Distribution channel has been defined by Hill, “Distribution channel consists of one or more companies or individuals who participate in the flow of goods and services from the manufacturer to the final user or consumer”
The role of distribution channels through an example
a) When there is no channel of distribution: When a customer wants to buy soap, rice and toothpaste etc there is no channel of distribution Meaning thereby the product has to be delivered to the end customer, directly by the producers of the above mentioned products.
Imagine the difficulty in reaching all the customers that a manufacturer will face. Secondly farmer growing rice may not have the resources to reach out to its customers and deliver it in a mutually satisfying transaction
b) When there is a channel of distribution involving a retailer: In the above case, even if one intermediary (retailer), is involved, the process becomes simplified not only for the customer but also for the producer.
The product can now be available to a larger number of customers, with less effort on the producer’s side.
Q4- A What are the characteristics of services that make them unique from products? Explain each of these characteristic with an example. What constitute Digital marketing? Pickup any company of your choice and list down the digital marketing tools used by the firm.
Ans- CHARACTERISTICS OF SERVICES
The world economy nowadays is increasingly characterized as a service economy. This is primarily due to the increasing importance and share of the service sector in the economies of most developed and developing countries.
In fact, the growth of the service sector has long been considered as indicative of a country’s economic progress.
Services have a number of unique characteristics that make them so different from products, Some of the most commonly accepted characteristics are:
Intangibility: When you buy a cake of soap, you can see, feel, touch, smell and use to check its effectiveness in cleaning.
But when you pay fees for a term in college, you are paying for the benefit of deriving knowledge and education which is delivered to you by teachers.
In contrast to the soap where you can immediately check its benefits, there is no way you can do so in case of the teachers who are providing you the benefits.
Inseparability:In most cases service cannot be separated from the person or firm providing it.
Service is provided by a person who possesses a particular skill (singer), by using equipment to handle a tangible product (dry cleaning) or by allowing access to or use of physical infrastructure (hotel, train).
A plumber has to be physically present to provide the service; the beautician has to be available to perform the massage.
This is in direct contrast to products which can be produced in the factory today, stocked for the next two, three or more months and sold when an order is procured.
Heterogeneity: The human element is very much involved in providing and rendering services and this makes standardisation a very difficult task to achieve.
The doctor who gave you his complete attention in your last visit may behave a little differently the next time.
The new bank clerk who cashes your cheques may not be as efficient as the previous one and you have to spend more time for the same activity.
This is despite the fact that rules and procedures have been laid down to reduce the role of the human element and ensure maximum efficiency. Airlines, restaurants, banks, hotels have a large number of standardised procedures
Perishability: Services cannot be stored and are perishable. A car mechanic who has no cars to repair today, or spare berths on a train, unsold seats in a cinema hall represent service capacity which is lost forever.
Apart from the fact that a service not fully utilised represents a totalloss, the other dimension of this perishability aspect is that most services may face a fluctuating demand.
There is a peak demand time for buses in morning and evening (office hours), certain train routes are always more heavily booked than others.
This fluctuating demand pattern aggravates the perishability characteristic of services
Ownership:- When you buy a product you become its owner-be it a pencil, book, shirt, refrigerator or car.
In the case of service, you may pay for its use but you never own it. By buying a ticket you can see the evening film show in the local cinema theatre;
by paying wages you can hire the services of a chauffer who will drive your car; by paying the required charges you can have a marketing research firm survey into the reasons for your products’ poor sales performance, etc.
In case of service, the payment is not for purchase, but only for the use or access to or for hire of items or facilities.
Digital Marketing : It is the present-day technique of marketing that began with the introduction and development of the internet, electronic devices and technology.
The products and services are introduced, promoted, marketed and sold using online (internet based) process and resources.
Digital Marketing includes platforms such as Google, Facebook, Instagram, YouTube, Twitter, Amazon, Flipkart, Myntra, Ajio, etc.
Amul the digital marketing tools used by the firm
1) Email Marketing Engaging the consumers by sending the promotional content and advertisement through emails is termed as email marketing.
Businesses usually maintain email directories for email marketing. It provides information and spreads awareness about the offerings (product or service) of the organization. It is the most subtle way to initiate conversation with your prospects.
ii) Search Engine Optimization : Search engine optimization, in short known as SEO, is the process or procedure to make the content of our website efficient with respect to the keywords that are entered by the users in the form of search queries in search engine. Keywords are at the heart of SEO.
Keywords vary with niche you are operating in. Based on the ethical practices, SEO can be performed in three different ways, namely, White Hat SEO, Grey Hat SEO and lastly Black Hat SEO.
iii) Social Media Marketing : The term seems quite self-explanatory as it includes social media in it. No doubt, this area of Digital Marketing is gaining a lot of attention and popularity,
as most of the youth and college going population is heavy users of social media platforms. And therefore, this is the most favorite and liked media channel by people because they are in touch with this tool.
iv) Facebook Ad : Facebook has a vast user base. It does not only provide platform for people to connect but also aid organizations to promote their offerings.
It provides advertisement services as well, and advertising on Facebook is the most economical of all the options available.
And it’s not only economical but also the effective and efficient one, the one that fetches you good results. Facebook help companies/businesses to find themselves their customers/audience.
v)Google Ad : This is the advertising services offered by Google. On an average Google receives more than 3.5 billion search queries on a daily basis (Bond, C.2020) Of course, they are all of different niche.
Google offers different formats of ads, like, Search ads, Display ads, and Video ads
Let’s take look at how these formats look like
vi) Web Analytics : Just running an ad campaign or a website is not enough. One must be well aware of the performance of its website and ads.
And therefore, to help businesses measure their performance, analytics tool is provided to them by the platform owner.
For example, to track and check the performance of your ad campaigns over Google, Google provides Google Analytics. Similarly, how your ads are doing on Facebook can be tracked via stats provided by Facebook Ad Manager
vii) Search Engine : Marketing Search engine marketing promotes website’s visibility in the search result of the search engine.
It is of two types – firstly Paid advertising and secondly, the free one, Search engine optimization (SEO) we have already seen earlier,
so, let’s have a look at the paid forms. There are different forms of paid advertising solutions that include
Q4- B Explain how Digital Marketing can be used in market penetration and in developing new markets. Discuss with a hypothetical example.
Ans- Digital Marketing can be used in market penetration
Digital Marketing tries to reach and engage its targeted audience by providing and using variety of new, innovative, cost effective and personalized ways.
A well planned and made Digital Marketing strategy delivers greater Return on Investment (ROI) than the Traditional Marketing strategies.
For example, when it comes to printing of advertisements, in magazines or newspapers what many businessmen don’t understand are the aspects of circulation.
The total number of readers who in reality see your advertisement will always be lesser than the numbers in circulation. Since a large number of magazines/newspapers issues almost always remain unsold.
However, the Digital advertisements are easily customizable than the print advertisements. Therefore, making digital marketing less risky.
For example, if you are running a digital campaign, you can easily change the targeted audience from time to time. Digital advertisements easily allow you to make real-time adjustments in your marketing plans
Digital marketing channel such as Google Ad words, charge based on Pay-Per-Click, rather than per impression.
This means that the Cost per thousand impressions in some cases is zero. Therefore, digital marketing is the best bet for businesses with a limited budget that want to increase their chances of success Currently, the world without the internet is almost unimaginable.
There are 4.66 billion active internet users all over the world, as of January 2021, which is around 59.5 percent of the world’s population. 92.6 percent (4.32 billion) of this total, access the internet through mobiles.
Internet is a fundamental pillar of the modern information society, connecting billions of people around the world.
Asia had the largest number of online users – over 2.3 billion as of 2019, whereas, China, US and India rank ahead all other countries.
China and India have more than 854 million and 560 million online users respectively, however, large parts of their population is still offline.
Discussed below are a few interesting statistics offered by Statista research data of India, that will help you understand the extent of penetration, usage and growth potential of Internet, Digital Marketing and Social Media for the success of any business.
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