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NAME : AMIT PATHAKROLL NO : 1302016570Q1. Explain the stages in the new product development process.

Answer: Many companies follow different types of new product development system. The stages in thenew product development process are mentioned below:

i) Concept generation and market structure identificationIdea generatio n

The first stage of new products evolution begins with an idea generation. Ideas may originatefrom the following sources, like sales personnel, customers, and many more.

Marketing structure analysisThis process implement a market structure and delineates the consumers perception of marketby building a map outlining the critical consumer dimensions, positioning existing brands on theperceptual map, and indicating favorable opportunities.

Sales pot ential

The potential of anew product entry into the market structure is estimated. It helps in establishinga base case for using this model for continuous monitoring of the sales forecast.

Concept screening

The ideas collected are scrutinized to eliminate those inconsistent with the product policies andobjectives of the firm.

ii) Advertising developmentThis stage involves the development of advertising and formulation of the product. It involves twoactivities, i.e., development of advertising strategy and product formulation. The main objective ofadvertising is to create advertising copy, which can reflect the products points of difference to theconsumer.

iii) Product formulation and testingThe idea-on-the-paper is turned into a product-on-hand and termed as technical development.During this period, all development of the product, from idea to final physical form, takes place.The final decision whether a product should be developed on a commercial scale or not isdecided at this stage because the time-lag requires to attain this stage is long.

iv) Testing the productIn this stage, the new product manager can check the feasibility and accuracy of productperformance.The objective is to assess whether the product meets the technical and commercialspecifications developed at various levels of concept development for ascertaining productacceptability.

v) Commercialisation and final launchThe product is submitted to the market and thus commences its lifecycle. Commercialisation isalso the phase where marketing is most active connection with the new product. This stage is acritical one for any new product and should be handled carefully. The following activities areusually undertaken during this stage:

Completing final plans for production and marketing

Initiating coordinated production and selling programs

Checking results at regular intervals

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All the stages explained above stress the fact that the development of a new product must passthrough certain logical stages.

Q2. Explain the steps in Marketing Research Process.

Answer: The process of marketing research involves the following steps:

Step 1- Identifying the marketing problem: The first step is to identify and understand the marketingproblem. Once the problem is defined, a series of research objectives can be laid down for further work.Marketing researchers conduct an exploratory research to investigate and explore to find the solution tothe problem.

Step 2- Developing marketing research plan: When the marketing problem is clearly identified andformulated, marketing researchers should develop a plan to collect the relevant information. Whiledeveloping the research plan, they should be familiarized with the existing research findings. Theresearch design helps in indentifying specific techniques and procedures that will be used to collect andanalyze data about a problem. This is compared with the objectives developed in the preceding stage.

Step 3- Designing marketing research strategy: Marketing researchers should design the research

strategy in accordance with the requirements of the problem. They should make certain hypotheses, thetesting of which would be helpful in solving the problem. It will cover issues like the cost structure for theresearch, the time and scheduling for the research and the nature of the contact method.

Step 4- Collection of data: Marketing researchers would either select primary methods or secondarymethods or both for data collection. Their decision depends on the nature of study and objective,availability of financial resources and time, and the desired degree of accuracy.

Step 5- Analysis of collected data: Data collected from various sources are processed. They areedited for the purpose of improving accuracy level. Editing is a process of weeding out irrelevantinformation from the data. It is done to find out the consistency, accuracy, completeness, and legibility ofthe responses and its usability for the desired research. The researchers have two sets of data namely:

a) Qualitative data analysis- It can be done by drawing inferences from the responses or byconducting content analysis.

b) Quantitative data analysis- It is classified by evaluating how many variables are to be measured.

Step 6- Report preparation: Keeping the objectives of the study in mind, the researchers shouldprepare the study report. The findings should be written in a concise, simple, and objective-orientedlanguage. Graphs and examples in the main report should be limited to those needed to conveyessential facts to support the research statement.

Thus, these are the steps in marketing research.

Q3. Write a short notes on:

A. Marketing PlanB. Marketing Planning process

Answer: A) Marketing Plan:A marketing plan is a written document that specifies the required actions to

attain one or more marketing objectives. Itcontains the following elements:

i) Executive summary and table of contents: It will give the glimpse of what is included in the

plan.

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ii) Mission statement: It explains why the business exists.

iii) Summary of performance till date: It should explain the results of the previous strategies

which will help in developing a base for future planning.

iv) Summary of financial projections: Past marketing performance must have been measured in

financial terms to explain the efficacy of financial investments.

v) Market overview: It indicates the behavior of the market in the future.vi) SWOT for major SBUs: The marketing planner needs to evaluate each Strategic Business

Unit (SBU) and conduct SWOT analysis.

vii) Portfolio summary of all the SBUs: It helps in allocation decisions.

viii) Market assumptions: A careful list of assumptions should be included in the plan based on

which the rest of the plan will follow.

ix) Marketing objectives and goals: It should be mentioned in clear, measurable terms which will

serve as a milestone for executing the plan.

x) Financial projections for at least three years: This will help the firm to regulate the marketing

function.

xi) Marketing strategy: The marketing planner will define the target segments, target marketing

strategy to be followed, and the positioning of the product in relation to competitors.

xii) Marketing action plans: Elements like product, price, place and promotion should be

elaborated.

B) Marketing Planning process: Planning is a process of designing the blueprint for the future.Marketing planning for an organization is planning for that organizations revenue- earning activities.Marketing managers have to face changes every day in the market place. The five steps in marketingplanning process are mentioned below:

i) The first step in marketing planning process is setting marketing objectives and policies.ii) The second step is designing the marketing system. In the marketing system, a company has

to design/ define each function with its contribution.iii) The third step is developing separate objectives, programs, and strategies for each function(like new product development function, pricing decisions, distribution function, promotionfunction) so that they can be assessed for the targets purpose and the broad objectives.

iv) The fourth step is drawing detailed plans for each function for a shorter period, i.e., a quarter,half a year, or a year. It will help in defining responsibilities, timing, and costs needed toachieve the short-term objectives.

v) The fifth step is merging the marketing plans into organizational plans.

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Q4. Describe the international market entry strategies in brief.

Answer: There are two methods to entry into foreign markets. They are indirect exporting and direct

exporting. In the first method, the manufacturers take the help of merchant exporters to get products

exported to foreign markets. In direct exporting, the manufacturers decide to export themselves.Apart

from these two methods, the other popular methods or strategies of entering international markets are:

i) Joint ventures: A joint venture is a strategic alliance where two or more parties, usually

businesses, form a partnership to share markets, intellectual property, assets, knowledge,

and profits. It differs from a merger, in the sense that there is no transfer of ownership in the

deal. The most typical joint venture is a 50/50 venture, in which there are two parties, who

hold a 50% ownership stake and contribute a team of managers to share operating control.

ii) Strategic alliance: A strategic alliance is formed when two or more businesses join together

for a set period of time. The companies are not in direct competition, but have similar

products or services that are directed towards the same target group. It enables business togain competitive advantage through access to a partners resources, including markets,

technologies, capital, and people,

iii) Direct investment: Through Foreign Direct Investment a firm invests directly in facilities to

produce and/or market a product in a foreign country. Once a firm undertakes FDI, it

becomes a Multinational Enterprise.

iv) Contract manufacturing: Contract manufacturing is a process that establishes a working

agreement between two companies. As part of the agreement, one companywillcustom

produce parts or other materials on behalf of their client. As a result, the client does not have

to maintain manufacturing facilities, purchase raw materials, or hire labor in order to producethe finished goods.

v) Franchising: Franchising is basically a specialized form of licensing in which the franchiser

not only sells intangible property (normally a trademark) to the franchisee, but also insists the

franchisee to abide by strict rules with respect to how business is done. The franchiser will

also often assist the franchisee to run the business on an ongoing basis. While licensing

works well for manufacturers, franchising is often suited to the global expansion efforts of

service and retailing.

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Q5. Discuss the various Price adjustment options adopted by the companies.

Answer: Companies are requires to adjust their base prices due to fierce completion and also based onthe situations. The various price adjustments options adopted by the companies are:

i) Psychological pricing: It states that certain prices are more appealing than others. Theprice is applied to say something regarding the product. One special form is reference pricingin which there are prices that a buyer carries in his/her mind and considers that when buyinga given product. As a measure of quality, image pricing or prestige pricing is used.

ii) Discounts and allowances: for rewarding customer responses, the discounts and allowancepricing has an effect of reducing prices. Everyday low pricing is a recent pricing issue, wherethe retailer charges a constant, low price for all times, with no short-term price discounts.Price discounting is a flexible pricing policy. Price reductions to buyers who pay their billspromptly are called cash discounts. Price reductions to buyers who buy merchandise orservices out of season are known as seasonal discounts. Price discounts allowed on the priceof new product, when an old used item is given as a part of the transaction are known as

trade in allowances. In order to promote their products, the price paid by manufacturers toretailers for an agreement to feature the manufacturers product in some way is calledpromotional allowances.

iii) Geographic pricing options: geography impacts the price in which the company decides onhow to price the distant customers. It includes various pricing options which are as follows:

Free on board- sellers are required to deliver goods on board a carrier or shipselected by the purchaser.

Uniform-delivered pricing- Company charges the same price plus freight to allcustomers, despite their location.

Averaging method- It facilitates distant customers but sometimes discriminatesagainst local or close customers.

Zone pricing- Different areas pay different prices on freight but all customers within thesame area pay the same freight charges.

Basing-point pricing- All purchasers are charged fright from a specified billing location.

Freight-absorption pricing- All shipping costs are paid by the seller for getting desiredbusiness.

iv) Predatory pricing: The illegal practice of forcing competitors out of business by settingunreasonably low prices is known as predatory pricing. The aim of reducing competitionthrough price discrimination is forbidden. It is covered by the Sherman Act and the FederalTrade Commission Act in USA.

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Q6. Define Personal selling and also explain the personal selling process.Answer: Personal selling is an activity which involves a face-to-face interaction with the customers

wherein there is a quick response and personal confrontation. In this, the focus is on personal or one to

one selling. It is the art of successfully persuading prospects or customers to buy products or services

from which they can derive suitable benefits thereby increasing their total satisfaction. i.e., delight.

Process or steps in personal selling includes the following:

a) Prospecting: This is the beginning of sales process, which covers searching for customers with

potential demand.

b) Targeting: This is the process of deciding how to allocate sales time among prospects and

existing customers.

c) Pre-approach: In this step, the salesperson plans methods to approach the customers and to

collect company and customer information.

d) 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 question- Questions should preferably be relevant to sales presentation.

Use a referral- Someone favorably 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.

e) Presentation and demonstration: In this stage, the salesperson gives a sale presentation and if

required demonstrates features, advantages, and benefits and value propositions of the product.

f) 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.

The psychological resistance includes resistance to interference, preference for establishedbrands, apathy and reluctance to give up something, etc. The logical resistance includes

objections to price, delivery schedule, or certain companies.

g) Closing: Some salespersons do not get into this stage or do not do it well. The salespeople try to

close sales after handling the customer objections.

h) Follow up and maintenance: The salesman does not 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, salespeople take care of maintenance.

Thus, these are the personal selling process.