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Xaviers Institute of
Business Management Studies
SUBJECT: MARKETING MANAGEMENT
COURSE : MBA Total Marks : 100
INSTRUCTIONS
1. Answer all the Questions
2. Present your Answer with tidiness and to
the point.
3. Question No 1 to 8 carry 10 marks each and
question No.9 carry 20 marks.
Question. 1. At
the time when the market leader for instant noodles was Nestles Maggi, the main challenger was Top Ramen’s Noodles.
Applying the concepts of marketing Management, what would be your strategic
plan in order to keep up the top position of Maggi.
Answer : Analysis SEGMENTATION SEGMENTATION TARGETING POSITIONING
DIFFERENTIATION Age, Eating Habit, Lifestyle of families, Small Children,
Teenagers, Youth / College Students, Office Goers, Working Women, Old People
who find it difficult to cook People on the move Health conscious, people –
Aata noodles Fast
Question. 2. Discuss the relationship between
‘Segmentation’ and ‘Positioning’. Explain the major criteria of Segmentation
and Positioning. Quote sufficient examples to strengthen your answer.
Answer : The division of a broad market into small segments
comprising of individuals who think on the same lines and show inclination
towards similar products and brands is called Market Segmentation. Market
Segmentation refers to the process of creation of small groups (segments)
within a large market to bring together consumers who have similar
requirements, needs and interests. The individuals in a
Question. 3. (a) Describe
in detail the stages in the Product Life Cycle.
Answer : The product life cycle has 4 very clearly defined stages,
each with its own characteristics that mean different things for business that
are trying to manage the life cycle of their particular products.
1.)
Introduction Stage – This stage of the cycle could be the
most expensive for a company launching a new product. The size of the market
for the product is small, which means sales are low, although they will be
increasing. On the
Question. (b) In this context, explain the challenges
that a Marketing Manager has to deal while introducing a new product.
Answer : Following are the Challenges that a marketing manager has
to deal while introducing a new product :
Concept - The first challenge you face when developing
new products is choosing a concept that has potential. A good idea is only a
first step and often isn't viable because of cost, production difficulties or
regulatory limitations. Your new product development company can only take on
projects for which it can establish a reliable path through development, and
your team has to learn to recognize such products.
design. You have to show that
your product can be built for the cost you estimated and that it will work as
planned. You may also develop customer documentation and instruction manuals.
Marketing - While you may help with identifying target
markets, establishing possible marketing concepts and test marketing, carrying
out the marketing plan is usually the job of your client company or the company
that will handle the developed product. Your involvement normally ends with a
successful product launch, although you may continue to act in an advisory
capacity, especially if your compensation includes a share of the future
profits.
4. What do you understand by Channel of
Distribution? Explain the different kinds of Channel of Distribution in detail.
Answer : A distribution channel is a chain
of businesses or intermediaries through which a good or service passes until it
reaches the final buyer or the end consumer. Distribution channels can include
wholesalers, retailers, distributors, and even the Internet. Distribution
channels are part of the downstream process, answering the question "How
do we get our product to the consumer?" This is in contrast to the upstream
process,
5. Explain the factors affecting
Pricing Decision. What are the various methods of pricing a Product? Briefly
explain them. Also, differentiate between Price shadowing and Price Covering.
Answer : Factors affecting pricing decision -
i.
Organizational Objectives: Affect the pricing decisions
to a great extent. The marketers should set the prices as per the
organizational goals.
6. What are the essential Factors
influencing Consumer behavior? Explain its significance in Marketing Management
in accordance with the Technology advancements.
Answer : Factors influencing Consumer Behaviour –
1.)Cultural factors - Culture plays a very vital role in
the determining consumer behaviour it is sub divided in
Culture - Culture is a very complex belief of human
behaviour it includes the human society, the roles that the society plays, the
behaviour of the society, its values customs and traditions. Culture needs to
be examined as it is a very important factor that influences consumer
behaviour.
Sub-Culture - Sub-culture is the group of people who
share the same values, customs and traditions. You can define them as the
7. Write Short Notes on any four of the
following:
(a) Price Skimming.
Answer : Price skimming is a product pricing strategy by which a
firm charges the highest initial price that customers will pay and then lowers
it over time. As the demand of the first customers is satisfied and competition
enters the market, the firm lowers the price to attract another, more
price-sensitive segment of the population. The skimming strategy gets its name
from "skimming" successive layers of cream, or customer segments, as
prices are lowered over time.Price skimming is often used when a new type of product
enters the market. The goal is to gather as much revenue as possible while
consumer demand is
(b) Media Selection for Advertising
Answer :
(c) Sales
Promotion
(B)
Answer : Sales promotion refers to ‘those marketing activities
that stimulate consumer shows and expositions. Purchasing and dealer
effectiveness such as displays, demonstration and various non- recurrent
selling efforts not in the ordinary routine.” According to A.H.R. Delens:
“Sales promotion means any steps that are taken for the purpose of obtaining an
increasing sale. Often this
(d) Product
Differentiation
(C)
Answer : Product differentiation is a marketing strategy that
strives to distinguish a company's products or services from the competition.
Successful product differentiation involves identifying and communicating the
unique qualities of a company's offerings while highlighting the distinct
differences between those offerings and others on the market. Product
differentiation goes hand-in-hand with developing a
(e) Demand
Inelastic in Business Buyer Behavior
Answer :
(f) Vertical
Marketing System
(D)
Answer : A vertical marketing system (VMS) is one in which the
main members of a distribution channel—producer, wholesaler, and retailer—work
together as a unified group in order to meet consumer needs. In conventional
marketing systems, producers, wholesalers, and retailers are separate
8. A new product is to be launched by a
company at Mumbai. As a part of identifying the consumer behavior, the company
intends to carry out a research process. Outline a Marketing Research Process
for the company in order to establish the requirements of the consumers.
Answer : Marketing research process as follows :
Step 1: Identify the Problem
The
first step for any marketing research activity is to clearly identify and
define the problem you are trying to solve. You start by stating the marketing
or business problem you need to address and for which you need additional
information to figure out a solution. Next, articulate the objectives for the
research: What do you want to understand by the time the research project is
completed? What specific information, guidance, or recommendations need to come
out of the research in order to make it a worthwhile investment of the
organization’s time and money? It’s important to
9. Case Study - Read the Case carefully and answer to the
questions analytically.
Case Study on
Maruthi Udyog Ltd.
Maruti Udyog
L:td.MUL is the largest auto manufacturer in India. It has 70 percent share of
the small car segment and 40 percent of the luxury segment. It was set up as a
joint venture between the Government of India and Suzuki motors of Japan. Today
the government has reduced its stake and it is a Suzuki firm. It has a vendor
network of nearly 450, a third of who have ISO 9000 certification. It also has
joint ventures with some of its vendors to ensure quality and timely delivery.
Maruti has about 14 models to cars, vans and jeep. In the small car segment, it
completes with Santro of Hyundai and Indica from the Tatas.
Maruti’s vision and mission statement are
given below
Vision: To be competitive worldwide in products and
services retain leadership in the country and aspire for a good market share
internationally.
Mission: To
sell a variety of cars- modern, high technology and fuel efficient – in the
Indian and foreign markets.
The
firm’s values are as follows
Growth oriented organization ready to
change to meet customers demand at short notice.
Value
for money for the customers.
Stakeholders’
involvement and satisfaction.
Responsible
corporate citizen.
Competitive
Analysis of Maruti
Maruti had a
good run till 1998 when several international players challenged its supremacy
. In the small car segment, Santro of Hyundai, and Indica from the Tatas pose
major problems for Maruti . In the luxury segment, its Esteem faces competition
from Honda City, Opel Astra , Ford Escort and Ford Ikon. Its jeep Gypsy faces
competition from Mahindra& Mahindra’s jeeps, and Tata’s Sumo and Safari.
Threat
of new entrants is real as the segment of middle class cars is growing rapidly,
Volvo, Volkswagen and Toyota are also planning to enter the market.
To beat Maruti’s brand image, economics of
scale and marketing and service network , new firms have to spend a lot of
money and efforts and that could be the entry barrier.
Critical
success factors of Maruti:
1. Suzuki technology
2. Economic scale of production
3. Strong R&D.
4. Timely market feedback as a result of continuous
research
5. Large range of models.
6. Strong dealer network
7. Large service network around the
country with trained technicians.
8. Quality programmes (Kaizan)
9. Design expertise
10. Brand equity
11. Provides leasing options, hire
purchase schemes.
Realising the
imminence of competition in 1998 , Maruti planned to have relationship
marketing , with an idea of selling Maruti cars to its existing customer base
and upgrading product purchase . Maruti introduced Zen Alto and Wagon R, for
this purpose.
MUL has competitive advantages in the segments it
operates in to counter the onslaught of competition it even reduced the price
and went for volume business .MUL has maintained its competitive advantage in
the following manner.
1. Superior Suzuki compact car
technology.
2. Value for money
3. Low maintenance cost.
4. Reliable quality
5. Largest network of dealers and
service centres.
6. large product range for various
needs and pockets.
7. Easy availability and attractive
finance schemes .
8. ISO certification, even for a large
number of dealers.
9. Technology transfers to important
vendors for ensuring quality supplies.
Maruti is a
household’s name not only in India but in a number of countries of the west as
well. With a modest beginning in 1997 when it exported 102 cars, now MUL
exports to more than 30,000 cars to 74 countries. The countries include Italy,
Holland and Chile; around 70 percent
sales are to Europe.
Maruti looks confidently to the
future with the following agenda:
1. Commitment to customer
satisfaction/delight.
2. Expansion and modernization of
facilities.
3. New model as per market demand
4. Model upgradation .
5. Market research to remain proactive
in the market.
6. Emphasis on overseas markets
7. Finance for the customers.
Questions:
1. Discuss the main issues narrated in
the case in your own style.
Answer : Few international players challenging its supremacy :
1.) In the small car segment,
Santro of Hyundai, and Indica from the Tatas pose major problems for Maruti .
Question. 3. Based on the Analysis of the case, put
forth your views and suggestions.
Answer : : The major strengths of Maruti
Udyog are good track record in customer satisfaction, possibly the widest
distribution network in the country, success in international markets,
technological Support and Back up from Suzuki Motors, Japan. The company has an
enviable record of getting the highest score in Customer Satisfaction with
Dealer Service in India for a 13th Consecutive year. Their weaknesses are
labour problems, profit after tax (PAT) has not increased with increasing sales
and quality problems and recall. The opportunities before the company are
growing domestic market (barring the recent downturn), strong image and wide
portfolio of products. The threats faced by Maruti are increasing competition
as there are nearly 20 players in the market and with
Dear
students, Get assignments and Case
studies
Do send your
query at :
or call us at
:08263069601
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