MARKETING MANAGEMENT - ASSIGNMENT

Question 1- Explain the steps in Business Buying process.

Ans:
Organisational buying behaviour is a functional involvement in which buyers at different
capacity in different functional departments objectively evaluate the possible options.
Steps in business buying process are1. Recognising an organisational need
Organisational purchasing starts with the identification of demand for products
and services. While there are different kinds of needs, most needs arise out of
situations related to the operation of the business. Need recognition is not always
as complicated or involved as it is in new task and modified re-buy decisions It
becomes a routine, particularly in a straight re-buy situation.
2. Determining product specifications
Subsequent to identification of the responsibility centre, the purchase manager
also specifies exact product and service descriptions for procurement. It is also
necessary to estimate the exact quantity required and the period in which these
quantities need to be delivered and the period in which these quantities need to
be delivered
3. Identifying suppliers
If there are many suppliers on the list, a screening procedure that bases its
decisions on certain predefined criteria is needed. The information gathered
enables the organisational buyer to quickly look for suppliers who can meet
minimum requirements. These requirements might be delivery time, capacity to
meet the buyers quantity needs, and breadth of the product line. Failure to meet
a minimum requirement usually means that a supplier will be included in the list
of acceptable suppliers, no matter how well that suppler stacks up on other
criteria.
4. Information search and supplier evacuation
A buying centre may have to evaluate several product types for a particular use
before suppliers can be selected. If products are complicated, technically trained
people sort through the alternatives to recommend those that meet previously
developed product specifications. For instance, many companies deal with the
rapidly changing technology of computer products by creating task forces that

keep themselves abreast of current product developments. A task force

recommends product types that are suitable for particular applications.
5. Negotiation of purchase orders
An organisational buyer may negotiate a contractual agreement with a supplier.
An agreement of this kind can cover a single purchase of a product or repurchase
of the product over a period of time. Contracts are commonly used in straight rebuy situations. Buying centres negotiate terms of payment, credit, and delivery
during this stage to arrive at a specified order routine, which the supplier is
required to honour under the negotiated agreement
6. Evaluation of supplier performance
Organisational buyers usually want to know how well suppliers comply with the
purchase agreement. The criteria used for supplier selection become the
performance standards for this evaluation. It also develops systems and
procedures to have a regular communication with the suppliers.
Question 2- A brand is a composite set of beliefs and associations in the mind of
consumers. In brand development, as a part of branding strategy decision, the
brand manager can decide to create new brand elements for the new products,
apply some of the existing brand elements to the new product, or use a
combination of existing and new products. Explain the different branding
strategies used by the companies for their range of products.
Ans:
Definition of Brand
A traditional definition of brand stands as a name, word, mark, symbol, device, or a
combination thereof, used to identify some product or service of one seller differentiate
them from those of the competitors. AMA defines brand as, A brand is a name, term,
sign, symbol, or design, or a combination of them, intended to identify the goods or
services of one seller or group of sellers and to differentiate them from those of
competitors.
Advantages of Brand
1) A brand promises and delivers a high level of assurance to consumers.
2) A brand serves as an assurance to the customer about the product performance.
3) A brand as a symbol of status and social significance gives you psychological
satisfaction.
4) The brand speaks about the products attributes and how they perform, about the
brand name and what it stands for and about the company associated with the
brand.

Explanation of different branding strategies adopted by the companies

Companies use different branding strategies for their range of products. They can be
categorised into the following three types.
1. Individual branding The company adopts a separate brand name for each
product it offers. The major advantage of individual branding is that of one brand
losses its market, the others may offset sales in the particular product category.
However, the company has to spend a lot of money and pursue enormous
promotional efforts to position each brand name in the consumers mind. For
example, Hindustan Lever markets its range of toothpastes by different names
such as Liril, Rexona, Lux, Lifebuoy Plus, and Lifebuoy Gold.
2. Family branding This branding is used by companies, who have developed their
family names. The major advantage of using family name for products is that it
minimises advertising and other promotional costs. But, if one product in the
group is perceived negatively in terms of quality, or in other aspects, by
consumers, it may pull down the entire range of products. Hence, companies
which use family names for branding must be cautious. For example, Ponds uses
its name for all products that include shampoos, talcum powders, and creams.
3. Corporate umbrella branding Companies such as Tata, Coke, and Pepsi are not
only using individual brand name for the range of products they market, but also
use a corporate umbrella cover for their brands. The idea is that the corporate
name symbolises truth and confidence to the buyers.
Question 3 - Explain the classification of market based on nature of competition
and area.
Ans
Definition of market
Market may be defined as a set of consumers, sellers, re sellers, and the intermediaries
who are involved in either the process of exchange or the process of getting involved in
an exchange process. Hence, market place is a physical place where buyers and sellers
meet for an exchange, whereas market space is the virtual world where buyers and
sellers meet through the internet.
Classification of market based onNature of area
When area is used as a basis of market classification, the markets can be categorized
into the following types:
a)
Local markets This market includes the client or customers who purchase the
product in the region or area where it is brought forth. Marketing managers must know

the target customers, their location, and the distance they are willing to travel to
purchase the product. The local includes customers located within the region where the
products or services are available.
b)
National markets This market encompasses domestic marketplace for goods
and services functioning within the borders and is governed by the regulations of a
particular country. The health of national markets can be a deciding factor for business
success.
c)
International markets This market is for products and services that are bought
by consumers residing outside the national boundaries of the country to which the
manufacturing company belongs.
Nature of competition
The most important form of market classification is based on the nature of competition.
i.e., the buyer-seller interaction. On this basis, the markets can be classified as a) Perfect competition This is a kind of market structure which reflects a perfect
degree of competition was propounded by Dr. Alfred Marshal. It is a free-market situation
in which the following conditions are fulfilled:
I.
II.
III.
IV.
V.

Buyers and sellers are numerous but a few have a degree of individual control
over the prices;
Buyers and sellers attempt to maximize their profit (income);
Buyers and sellers are free to get in or leave the market;
Buyers and sellers are endowed with the information regarding availability, price
and quality of goods being traded;
Goods of a specific category are homogeneous; hence they are interchangeable
for one another. This market structure is also called perfect market or pure
completion.

b) Imperfect market In a market where individuals firms exercise control over the
price, there are fewer buyers and sellers, and the firms do not sell identical products.
These markets are further divided into three parts:
Monopoly A kind of market structure where there is a single seller and there is no
close substitute for the product that is offered by the seller. The price of the product is set
by the single seller.
Oligopoly - A kind of market structure where there are a few sellers in the market and
they control the supply of a product in the market. Each seller has some degree of
control over the price.
Monopolistic competition A kind of market structure where there are many sellers
(but not as many as in a perfect market) and they produce somewhat different products
that are close substitutes of each other.
Question 4 - Personal selling focuses in on personal or one to one selling. It involves
an individual salesman or a sales team establishing and building a profitable relationship
with customers over a period of time through a series of steps. Explain the steps in the
personal selling process which helps in the successful sales.

Ans
Definition of personal selling
Personal selling is an activity which involves a face-to-face interaction with the
customers wherein there is a quick response and personal confrontation. This allows for
more specific adjustment of the message. Here, the communication message can be
adjusted as per the customers specific needs or wants. It offers you the opportunity to
develop long-term familiarity and relationship.
Explanation of steps in personal selling process
Personal selling is an activity which involves a face-to-face interaction with the
customers wherein there is a quick response and personal confrontation. This allows for
more specific adjustment of the message. Here, the communication message can be
adjusted as per the customers specific needs or wants.
Steps in personal selling include the following:
1. Prospecting - This is the beginning of sales process, which covers searching for
customers with potential demand.
2. Targeting - This is the process of deciding how to allocate sales time among
prospects and existing customers.
3. Pre-approach - In this step, the salesperson plans methods to approach the
customers and to collect company and customer information.
4. Communication and approach - This is the process of communicating and
contacting the customers. It involves developing a system to greet the customers
and meet them for the sale. Homer B. Smith has recommended different
approaches. The following are some proven techniques:
Ask questions Questions should preferably be relevant to sales
presentation.
Use a referral Someone favourably known to the potential customer.
Offer a benefit or service This can be quite effective if relevant to customers
need.
Complement the prospect It is a good way to establish rapport if there is
anything that the prospect has achieved.
5. Presentation and demonstration In this stage, the salesperson gives a sales
presentation and if required demonstrates features, advantages, and benefits and
value propositions of the product.
6. Customer objection handling Customers always pose objections during
presentations or when asked to order. Psychological resistance and logical
resistance are the two types of resistance seen at this stage. The psychological
resistance includes resistance to interference, preference for established brands,
apathy, reluctance to give up something, etc. The logical resistance includes
objections to price, delivery schedule, or certain companies.

7. Closing Some sales people do not get to this stage or do not do it well. The sales
people try to close sales after handling the customer objections.
8. Follow up and maintenance The salesman does follow up and retains the
relationship with customers to obtain repeated orders and referrals and ensures
customer satisfaction and repeated business. In the case of consumer durables,
sales people take care of maintenance.
Question 5 - Describe the stages in consumer decision making process.
Ans
The stages in consumer decision making process are:
1) Problem recognition
A buying process starts when a consumer recognizes that there is a substantial
discrepancy between his or her current state of satisfaction and expectations in a
consumption situation. A need can be activated through internal or external stimuli. The
basic needs of common men rise to a particular level and become a drive. This is a case
of internal stimulus. A need can also be aroused by an external stimulus such as sighting
a new product in a shop while purchasing other usual products.
2) Information search
Information about products and services are gathered from various sources for further
processing and decision-making. The first source of consumer information is the internal
source. This means the consumer first search the information regarding the relevant
product from his/her inner memory. If the information is not available from internal source
for making a purchase decision, he or she may collect information from external sources.
3) Alternative evaluation
Once interest in a product is aroused, a consumer enters the subsequent stage of
evaluation of alternatives. Evaluation leads to formation of buying intention that can be to
either purchase or reject the product/brand. The final purchase will however depend on
the strength of the positive-intention, which is the intention to buy.
4) Purchase decision
Finally, the consumer arrives at a purchase decision. Purchase decisions can be any
one of the three - 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 economic situation that
forces the consumer not to buy now or postponement of purchase for future period of
time. If positive attitudes are formed towards the decided alternative, the consumer will
make a purchase.
5) Post-purchase behaviour

Post-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 satisfied product-use
experience leads to repeated purchase, referrals from satisfied customers to new
customers, higher usage rate, and also brand advocacy.
Question 6 - Do you think the argument of some theorists that the traditional Ps are not
enough for services marketing? Give suitable examples to prove your point.
Ans:
Service marketing
Service marketing constitutes a strategic area, which has propelled growth and success
for many organisations. Pure services and products are hypothetical extremes as every
product today is associated with some level of service. Alternatively, physical evidences
are created for augmenting services and reducing customers perception of risk.
The Traditional 4PS
A marketing mix can be referred to as a planned mix of the controllable elements of a
product's marketing plan, commonly termed as 4Ps: product, price, place, and
promotion.
These four elements are adjusted until the right combination that serves the needs of the
customers, while generating optimum income for the company is found.
1) Product
According to Philip Kotler, A product is anything that can be offered to a market for
attention, acquisition, use, or consumption that might satisfy a need or want products
include physical products, services, persons, places, organisations, and ideas. Products
have various attributes such as quality, variety, design, brand, packaging, services, and
warranties that can be manipulated depending on what the target market wants.
2) Price
It is a value that will purchase a specific quantity, weight, or other measure of a product.
Price is the only marketing mix variable that can be altered quickly. Price directly
influences the development of marketing strategy as it is a major factor that influences
the assessment of value obtained by customers.
3) Place
Place mix deals with the physical distribution of products at the right time and right place.
For example, a customer usually purchases toiletries from nearby retail stores. he
development of marketing strategy as it is a major factor that influences the assessment
of value obtained by customers. Distribution channels may also be used in marketing
strategy to differentiate a product from its competitors. A company uses distribution
channels like retailers, wholesalers, merchants, brokers and value added resellers.
4) Promotion
This includes the methods to communicate the features and benefits of the products or
services to its target customers. Some common methods include advertising, sales
promotion, direct selling, public relations, and direct marketing. Promotion is a key

element of marketing programme that is used to favourably influence target customers

perceptions to facilitate exchange between the marketer and the customer.
The Additional 3PS
1) People
An essential ingredient to any service provision is the use of appropriate staff and
people. Recruiting the right staff and training them appropriately to delivery their services
are very essential if the organisation wants to obtain a competitive advantage.
2) Process
This refers to the way in which a service is delivered to the end customer. Service
process can be mechanised as well.
3) Physical evidence
Physical evidence is the tangible part of a service. Service customers experience a
greater perceived risk as they cannot rate a particular service until it is consumed.
Physical evidence can include web pages, paperwork (such as invoices, tickets, and
dispatch notes), brochures, furnishings, ambience, signage (such as those on aircraft
and retail stores), brand logos, uniform of employees, business cards, and the building
itself.