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NATIONAL INSTITUTE OF MANAGEMENT BUSINESS MARKET MANAGEMENT part 2 MARKS 100 All the questions are compulsory .

The first five question shall be of 16 marks each and the last question shall be of 20 marks . Q 1(a) why business market managers must be adopt at analyzing understanding, Building & playing an active part in work teams working relationships & Business network? Answer : (b) How do firms make new offering realization more market oriented? Answer : Instead of centering on products and services a uniquely powerful value proposition can emerge by providing customer solutions. Customer solutions are offerings that integrate goods and service to provide customized outcomes for specific customers .Rather than beginning with a product a true customer focus defines a customer problems and works towards creating a solution that solves this problem. Firms to make new offering realization more market oriented learn more about the customer needs and ways to create best solutions for the same . Greater the competition stronger the relation between market orientation and business performance . In intensively competitive industries those organizations that seek differentiation through higher levels of market orientation would improve their likelihood of survival rather than only competing on price .Higher level of competition should increase the importance of developing better understanding of relationship between organizations offering and articulated and in-articulated customer needs .As a result firms make new offering realization more market oriented based on greater understanding of customer needs .

Q 2(a) how can one ensure that value is delivered? Answer : A business marketing strategy must be based on an assessment of company , the competitor , the customer . A successful strategy focuses on identifying those opportunities in which the firm can deliver superior value to customers based on its distinctive competencies . A supplier must match their capabilities , resources and skills with particular customer needs that are not being adequately served .By understanding customer needs , marketing managers can define value from the customers perspective and convert that information into requirements for creating satisfied customers and ensuring that value is delivered.

(b) How can one strengthen reseller reformation? Answer : Reseller reformation can be strengthened by 1. Qualified leads 2. Dedicated channel partner representatives 3. Generous commissions 4. Training and educational programs 5. Marketing collateral and tools including datasheets, promotional templates, and advertisements 6. Events and business development programs 7. Pre- and post-sales support 8. Dedicated channel partner portal 9. Channel program branding and merchandise

Q 3(a) What do you mean by A General Realization process model ? Answer : (b) Explain the resource-based view of the firm creating market strategy? Answer : The resource-based view of the firm (RBV) is one of the latest strategic management concepts to be enthusiastically embraced by marketing scholars Resource Based View of the Firm creating market strategy ( From Jay Barney's perspective ) However most scholars consider Jay Barney the father of the modern Resource-Based View of the Firm (RBV) suggests that there can be heterogeneity or firm-level differences among firms that allow some of them to sustain competitive advantage.

Therefore, the RBV emphasizes strategic choice, charging the management of the firm with the important tasks of identifying, developing and deploying key resources to maximize returns. Barney (1991: Firm resources and sustained competitive advantage) made clear that abnormal rents can be earned from resources to the extent that they are VRIN 1)Valuable :When they enable a firm to conceive or implement strategies that improve its efficiency or effectiveness. 2)Rare :Valuable firm resources possessed by large numbers of competing firms can not be sources of either a competitive advantage or a sustainable competitive advantage. 3)Imperfectly Imitable: Because of {a combination of} three reasons: unique historical conditions, causally ambiguous, social complex . 4)Non-Substitutable :There must not be strategically equivalent valuable resources that are themselves either not rare or imitable .

Q 4(a) Define market segmentation & explain the progressive and conventional bases of Segmentation. Answer : Market Segmentation is defined as a process of dividing market into a groups of similar consumers and selecting the most appropriate groups for the firms to serve. (b) Is it essential that business market managers recognize which prospective Customer firm is having a buying orientation. Answer : Those selling or marketing to commercial buyers need to understand the needs of the buyer in order to be effective. They need to understand the buyers' businesses and how to develop relationships with them. Understanding firms as customers is the process of learning how companies rely on a network of suppliers to add value to their offerings, integrate purchasing activities with those of other functional areas and outside firms, and make purchase decisions. Crafting market strategy to exploit a firm's resources to achieve short-term and long-term marketplace success, deciding upon a course of action, and flexibly updating it as

learning occurs during implementation Hence it is essential for Business market managers to understand which prospective customer firm is having a buying orientation in order to 1) Crafting market strategy 2)New offering realization 3) Gaining Customers 4) Improving sales and profitability Q 5(a) How can business market managers sustain customer through connected Relationship? Answer : Customer selection and acquisition is just the beginning of the customer relationship life cycle. Ideally, company should target only high value and low attrition-risk prospects. The cost to acquire a new customer is much greater than the cost to retain an existing customer. Depending on the industry, experts indicate that it is five to ten times more costly to acquire a new customer than it is to keep and develop an existing customer. In the retention stage of the customers life cycle, a company retains its customers by delivering on its value proposition. This ensures that the customer needs to look no further; that is the rationale for providing the highest-quality of service. When your customer relationship is based on trust, cooperation and collaboration, the customer is more willing to listen to your new ideas, try your new products/ services, and considers you as a long term, trusted partner. A business market manager understands that it pays to nurture existing customer relationships. If a good working relationship has been established, then it is easier to up-sell and cross-sell your products/services to this existing customer. If your customers business is growing, there is a good possibility that there will be an increased need for your products/services. (b) Explain the way of fulfilling supplier commitments to deliver value. Answer : Following are the ways of fulfilling supplier commitments Pursuing continued improvement and seeking actively to identify, and share with the customer, experiences, innovations and market advances Being proactive in the suggestion and use of measures, such as etechniques, to improve the efficiency of the trading relationship

Working with any potential subcontractors or other commercial partners from the earliest possible stages to promote an integrated supply chain approach and to make most effective use of skills and resources IT can be summarized as follows: LEADERSHIP Be a leaders in our area of responsibility, with a deep commitment to deliver leadership results. Have a clear vision of where firm is going. Focus on the resources to achieve leadership objectives and strategies. Develop the capability to deliver strategies and eliminate organizational barriers. OWNERSHIP Accept personal accountability to meet the business needs, improve systems and help others improve their effectiveness. Act like owners, treating the Companys assets as own and behaving with the Companys long-term success in mind. INTEGRITY Always try to do the right thing. Uphold the values and principles in every action and decision. Be data-based and intellectually, honest in advocating proposals, including recognizing risks. PASSION FOR WINNING Be determined to be the best at doing what matters most. Have a compelling desire to improve and to win in the marketplace. TRUST Respect customers, consumers and treat them as we want to be treated. We have confidence in each others capabilities and intentions. Q 6(a) Explain how manager use CRM to evaluate customer relationship? Answer : CRM involves aligning customer strategy and business process for the purpose of improving customer loyalty and eventually corporate profitability . CRM is a comprehensive strategy that enhances the process of acquiring, retaining and partnering with selective customers to create superior value for the company and the customer. A manager can to evaluate customer relationship use CRM in following ways 1) Calculate the share of customers purchases for the firms goods and services

2) Analyze customer revenue and cost data to identify current and future high value customers 3) target marketing communications to high value customers . (b) What is value in business markets? Answer : Value in business markets is the economic , technical , service and social benefits received by a customer firm in exchange of the price paid for a product offering .By gauging the value of the offerings to different groups of customers business marketers are better equipped to target accounts and to determine how to provide enhanced value to the particular customer .The choice of potential accounts to target is facilitated by an understanding of how different customers define value . Some product may be critical to customers operations , so they place a high value on supporting services ( for example technical support , training etc.) and are willing to pay a premium price for that .Other customers may not value service and support , and are extremely price sensitive .Different customers define values differently so to gain the market customer oriented value proposition is required . (c) State the importance of gaining customer feedback. Answer : When customers feel rapport, they are more forgiving of mistakes. Rapport is created by allowing customers to vent, providing active listening, demonstrating a sense of urgency in problem resolution, and conveying a helpful, willing attitude.

Complaining customers must feel their feedback is welcome and valued and will be used to eliminate the problem at the root. In a recent study, the amount of time representatives spent on the phone and their encouragement of customers to call again if there were more questions was rated very high. These findings suggest there is value in making customer feel their feedback and business is appreciated. An organisation committed to the provision of high-quality products and services, recognizes the importance of customer feedback as a valuable source of information; essential for continuous improvement in customer service. Feedback and complaints can be used as an opportunity to learn from customers the short falls against the commitments .Addressing feedback and complaints promptly, courteously and confidentially improves sales.

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