Marketing Mang PMM1A

8/13/2019 Marketing Mang PMM1A

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Subject Code: PMM1A

Paper: Marketing Management

Specific Instructions:

Answer all the four questions.

Marks allotted 100. Each Question carries equal arks.

!ord liit is "#0$%00 words

General Instructions:

&he Student should subit this assi'nent in the handwritten for (not in the t)*ed forat+

&he Student should subit this assi'nent within the tie s*ecified b) the e,a de*t

Each Question entioned in this assi'nent should be answered within the word liit s*ecified

&he student should onl) use the -ule sheet *a*ers for answerin' the questions.

&he student should attach this assi'nent *a*er with the answered *a*ers.

ailure to co*l) with the abo/e i/e instructions would lead to rejection of assi'nent.

_____________________________________________________

Question No1

Toyota is planning to launch a small car in India by 2010. However itwishes to understand the buying behavior of the market first. Suggestto the company as to which dimensions of such behavior should thecompany focus on for detailed scrutiny.

The automobile industry today is the most lucrative industry. ue to

the increase in disposable income in both rural and urban sector andeasy finance being provided by all the financial institutes! thepassenger car sales have increased at the rate of "#$ per annum in%une 2011&12 over the corresponding period in the pervious year.'urther competition is heating up in the sector with a host of newplayers coming in and other like (orsche! )entley! *udi! and )+, allset to venture in the Indian markets. -ne factor that could help thecompanies in the marketing of their product is by knowing andcreating a personality for their brands. 'oreign car companies havediscoveredthe Indian consumer as well as the / potential in theIndian technicalfraternity and are setting up manufacturing plants right

and left across the countryat lower costs. The Indian automobileindustry is currently eperiencing anunprecedented boom in demandfor all types of vehicles.

Toyota should focus on brand personality. * brand is a set ofepectation and association evoked from a company orproduct. *brand is how your key constituents& customers!employees!shareholders etc. eperience what you do. Some brands


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on. It ends with the voiceover telling us that+aruti Su>uki is most fuel&efficient car.However in the small car segment! the rational benefitsmagic is not alwaysapplicable.

Question No2a= Selecting the right target is one of the most crucial aspects of

marketing. ?plain.

The target market is the group of people that a communication

is specifically trying to reach. This is a vital concept in

business marketing strategies, where businesses attempt to

increase their market share by appealing directly to certainkinds of customers based on demographics. While the message

itself is always important, the target market dictates what

type of message should be created and what qualities it should

have. Many aspects of communication depend on this

understanding. Choosing a target market allows an

organization to focus its message to a select group of people.

The group can be either large or small, but either way, the

organization can set clear goals for reaching them and save

the costs associated with trying to reach everyone equally

an ultimately futile endeavor. !ocusing on a specific target

market also can save time in creating and making

communication materials. "aving a target market also enables

the organization to choose the proper channels to

communicate with it. !or instance, online forms of

communication tend to work better with younger generations

that are familiar with social media, and worse with older

generations that do not use computers as often. #osters and

banners work best when communicating to a local audience,

while seminars work best to reach a group of people who may


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otherwise have time constraints. Te$tual and vocal messages

also appeal to different sets of people. The target market

should always dictate the best channel of communication. The

more a business understands a target market, the better it can

construct communications to reach them and mean e$actly

what is intended. % good e$ample of this advantage remains

cultures outside those the organization belongs to. &ifferent

cultures have different languages, nonverbal cues and customs

that create different communication environments that can

distort or negate communication from those unaware of such

differences. %n organization with a deep understanding of a

target market will ultimately be able to understand what that

market feels is important' what norms, values or virtues they

shape their lives by' and what needs they have. This type of

deeper understanding allows organizations to communicate

messages in such a way that audiences immediately

understand and identify with them.

b= ?plain segmentation! targeting and positioning for the followingbrands@i= eliance fresh

Segmentation A target customers living in urban areas! who

wants to buy fresh and healthy food and have a mindset ofbuying grocery from organi>ed retail stores and perceive it asstatus symbol

Targeting A targeting females with age 1#&B0 years! middle to

upper income class groups! targeting both working women andhousewives and minimum graduates

(ositioning A emphasi>ing on merchandi>ing! store image! storepersonnel! and position it as retail stores with fresh vegetablesand food at highly reasonable price

ii= Tata Safari icor


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Segmentation A target customers living in urban areas! whowants to buy stylish and big car! have a mindset of buying highclass luury cars with huge space! band conscious and perceiveit as status symbol

Targeting A targeting males with age 2B&ing on style! look! passion! strength and

pace

iii= +aggi atta noodles

Segmentation A target customers living in rural! semi urban and

urban areas! who are health conscious! use have a small mealduring the breakfast and day time and perceive it as good forhealth

Targeting A targeting both males and females with age #&B0

years! lower! middle to upper income class groups! targetingpeople with no limitation on education

(ositioning A emphasi>ing on health! low price and 9uick serving

small meal

iv= 7ingfisher *irlines

Segmentation A urban area! high density population areas! upperincome class groups and socio&economic class * segment

Targeting A company eecutives! lower middle! upper middle and

lower upper segment (ositioning A lifestyle! benefits and 9uality

Question No3

;a=How is the growth of organi>ed retail affecting the distributionstrategies of marketers6

)usiness marketing is a marketing practice of individuals ororgani>ations ;including commercial businesses! governments andinstitutions=. It allows them to sell products or services to othercompanies or organi>ations that resell them! use them in their

products or services or use them to support their operations.)usiness marketing is also known as industrial marketing or business&to&business ;)2)= marketing. espite sharing dynamics oforgani>ational marketing with marketing to governments! business&to&government marketing is different. )usiness markets have a deriveddemand A a demand in them eists because of demand in theconsumer market. *n eample would be the Indian governmentwishing to purchase e9uipment for a nuclear power plant. The


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underlying consumer demand that has triggered this is that people ofIndia are consuming more electricity ;by using more household devicessuch as washing machines and computers=. )usiness markets do noteist in isolation.* single consumer market demand can give rise to hundreds of

business market demands. The demand for cars in India createsdemands for castings! forgings! plastic components! steel and tires. Inturn! this creates demands for casting sand! forging machines! miningmaterials! polymers! rubber. ?ach of these growing demands hastriggered more demands.*s the spending power of citi>ens increases! countries generally seesan upward wave in their economy. Cities or countries with growingconsumption are generally growing business markets. espite thedifferences between business and consumer marketing from a surfaceperspective being seemingly obvious! there are more subtledistinctions between the two with substantial ramifications. wyer and

Tanner ;200D= note that business marketing generally entails shorterand more direct channels of distribution.,hile consumer marketing is aimed at large groups through massmedia and retailers! the negotiation process between the buyer andseller is more personal in business marketing. *ccording to Hutt andSpeh ;200


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ii. (C

The (roduct ife Cycle ;(C= is used to map the lifespan of a product.There are generally four stages in the life of a product. These fourstages are the Introduction stage! the rowth stage! the +aturity stage

and the ecline stage. The following graph illustrates the four stages ofthe (C4

&he our Sta'es of the Product ife C)cle

1. ntroduction: &he ntroduction sta'e is *robabl) the ost i*ortant sta'e in the PC.

n fact2 ost *roducts that fail do so in thentroduction sta'e. &his is the sta'e in which the *roduct is initiall) *rooted. Public

awareness is /er) i*ortant to the success of a *roduct. f *eo*le don3t know about the

*roduct the) won3t 'o out and bu) it.

&here are two different strate'ies )ou can use to introduce )our *roduct to consuers.

4ou can use either a *enetration strate') or a skiin' strate'). f a *enetration strate')

is used then *rices are set /er) hi'h initiall) and then 'raduall) lowered o/er tie. &hisis a 'ood state') to use if there are few co*etitors for )our *roduct. Profits are hi'h

with this strate') but there is also a 'reat deal of risk. f *eo*le don3t want to *a) hi'h

*rices )ou a) lose out. &he second *ricin' strate') is a skiin' strate'). n this case

)ou set )our *rices /er) low at the be'innin' and then 'raduall) increase the. &his is a'ood strate') to use if there are alot of co*etitors who control a lar'e *ortion of the

arket.Profits are not a concern under this strate'). &he ost i*ortant thin' is to 'et )ou

*roduct known and worr) about akin' one) at a later tie.

". 5rowth: f )ou are luck) enou'h to 'et )our *roduct out of the ntroduction sta'e)ou then enter this sta'e. &he 5rowth sta'e is where )our *roduct starts to 'row. n this


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high sales to gain a high profit is therefore EskimmingE the market.Skimming is usually employed to reimburse the cost of investment ofthe original research into the product4 commonly used in electronicmarkets when a new range! such as J players! are firstly dispatchedinto the market at a high price. This strategy is often used to target

Eearly adoptersE of a product or service. ?arly adopters generally havea relatively lower price&sensitivity & this can be attributed to4 their needfor the product outweighing their need to economise@ a greaterunderstanding of the productFs value@ or simply having a higherdisposable income.This strategy is employed only for a limited duration to recover most ofthe investment made to build the product. To gain further marketshare! a seller must use other pricing tactics such as economy orpenetration. This method can have some setbacks as it could leave theproduct at a high price against the competition.

(imit pricing* limit price is the price set by a monopolist to discourage economicentry into a market! and is illegal in many countries. The limit price isthe price that the entrant would face upon entering as long as theincumbent firm did not decrease output. The limit price is often lowerthan the average cost of production or :ust low enough to makeentering not profitable. The 9uantity produced by the incumbent firmto act as a deterrent to entry is usually larger than would be optimalfor a monopolist! but might still produce higher economic profits thanwould be earned under perfect competition. The problem with limitpricing as a strategy is that once the entrant has entered the market!

the 9uantity used as a threat to deter entry is no longer the incumbentfirmFs best response. This means that for limit pricing to be an effectivedeterrent to entry! the threat must in some way be made credible. *way to achieve this is for the incumbent firm to constrain itself toproduce a certain 9uantity whether entry occurs or not. *n eample ofthis would be if the firm signed a union contract to employ a certain;high= level of labor for a long period of time. In this strategy price ofthe product becomes the limit according to budget.

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Marketing Mang PMM1A