Smu 3rd markting

MANBIR SINGH PARMAR ROLL NO 581127511 MBA IN MARKETING

Master of Business Administration - Semester 3
MB0050: “Research Methodology”
(4 credits)
(Book ID: B1206)
ASSIGNMENT- Set 1
Marks 60
Note: Each Question carries 10 marks. Answer all the questions
Q1. a. Distinguish between Double sampling and multiphase sampling.
ANSWER.

DOUBLE SAMPLING

Definition:
A standard form of sample design for industrial inspection purposes. In accordance with the characteristics
of a particular plan, two samples are drawn, n1 and n2, and the first sample inspected. The batch can then be
accepted or rejected upon the results of this inspection or the second sample be inspected and the decision
made upon the combined result.

Context:

The term has also been used somewhat loosely for what is called multi-phase sampling and the two-stage
version of multi-stage sampling. There is a further usage whereby a first sample provides a preliminary
estimate of design parameters which govern the size of the second sample to achieve a desired overall result.

MULTI-PHASE SAMPLING

It is sometimes convenient and economical to collect certain items of information from the whole of the
units of a sample and other items of usually more detailed information from a sub-sample of the units
constituting the original sample. This may be termed two-phase sampling, e.g. if the collection of
information concerning variate, y, is relatively expensive, and there exists some other variate, x, correlated
with it, which is relatively cheap to investigate, it may be profitable to carry out sampling in two phases.

At the first phase, x is investigated, and the information thus obtained is used either (a) to stratify the
population at the second phase, when y is investigated, or (b) as supplementary information at the second
phase, a ratio or regression estimate being used.

Two-phase sampling is sometimes called "double sampling".

MANBIR SINGH PARMAR ROLL 581127511[Type text] Page 1


Context:

Further phases may be added if desired. It may be noted, however, that multiphase sampling does not
necessarily imply the use of any relationships between variates x and y. The expression is not to be
confused with multi-stage sampling.

QUESTION 1 b. What is replicated or interpenetrating sampling?
ANSWER.

It involves selection of a certain number of sub-samples rather than one full sample from a population. All
the sub-samples should be drawn using the same sampling technique and each is a self-contained and
adequate sample of the population. Replicated sampling can be used with any basic sampling technique:
simple or stratified, single or multi-stage or single or multiphase sampling. It provides a simple means of
calculating the sampling error. It is practical. The replicated samples can throw light on variable non-
sampling errors. But disadvantage is that it limits the amount of stratification that can be employed.
IPS(interpenetrating sampling) provides a quick, simple, and effective way of estimating the variance of an
estimator even in a complex survey. In fact, IPS is the foundation of modern resampling methods like
Jackknife, bootstrap, and replication methods. In IPS, three basic principles of experimental designs,
namely, randomization, replication, and local control, are used. IPS is used extensively not only in
agriculture, but also in social sciences, demography, epidemiology, public health, and many other fields.

QUESTION 2. What are the differences between observation and interviewing as
methods of data collection? Give two specific examples of situations where either
observation or interviewing would be more.
ANSWER.
While case study writing may seem easy at first glance, developing an effective case study (also called a
success story) is an art. Like other marketing communication skills, learning how to write a case study takes
time. What‘s more, writing case studies without careful planning usually results in sub optimal results?
Savvy case study writers increase their chances of success by following these ten proven techniques for
writing an effective case study:

Involve the customer throughout the process. Involving the customer throughout the case study development
process helps ensure customer cooperation and approval, and results in an improved case study. Obtain
customer permission before writing the document, solicit input during the development, and secure
approval after drafting the document.
Write all customer quotes for their review. Rather than asking the customer to draft their quotes,
writing them for their review usually results in more compelling material.

Case Study Writing Ideas
Establish a document template. A template serves as a roadmap for the case study process, and
ensures that the document looks, feels, and reads consistently. Visually, the template helps build the brand;


procedurally, it simplifies the actual writing. Before beginning work, define 3-5 specific elements to include
in every case study, formalize those elements, and stick to them.
Start with a bang. Use action verbs and emphasize benefits in the case study title and subtitle.
Include a short (less than 20-word) customer quote in larger text. Then, summarize the key points of the
case study in 2-3 succinct bullet points. The goal should be to tease the reader into wanting to read more.
Organize according to problem, solution, and benefits. Regardless of length, the time-tested, most
effective organization for a case study follows the problem-solution-benefits flow. First, describe the
business and/or technical problem or issue; next, describe the solution to this problem or resolution of this
issue; finally, describe how the customer benefited from the particular solution (more on this below). This
natural story-telling sequence resonates with readers.
Use the general-to-specific-to-general approach. In the problem section, begin with a general
discussion of the issue that faces the relevant industry. Then, describe the specific problem or issue that the
customer faced. In the solution section, use the opposite sequence. First, describe how the solution solved
this specific problem; then indicate how it can also help resolve this issue more broadly within the industry.
Beginning more generally draws the reader into the story; offering a specific example demonstrates, in a
concrete way, how the solution resolves a commonly faced issue; and concluding more generally allows the
reader to understand how the solution can also address their problem.

Q3. How case study method is useful to Business Research?
ANSWER .
While case study writing may seem easy at first glance, developing an effective case study (also called a
success story) is an art. Like other marketing communication skills, learning how to write a case study takes
time. What's more, writing case studies without careful planning usually results in sub optimal results?

Involve the customer throughout the process. Involving the customer throughout the case study development
process helps ensure customer cooperation and approval, and results in an improved case study. Obtain
customer permission before writing the document, solicit input during the development, and secure
approval after drafting the document.
Write all customer quotes for their review. Rather than asking the customer to draft their quotes, writing
them for their review usually results in more compelling material.

Case Study Writing Ideas
Establish a document template. A template serves as a roadmap for the case study process, and ensures that
the document looks, feels, and reads consistently. Visually, the template helps build the brand; procedurally,
it simplifies the actual writing. Before beginning work, define 3-5 specific elements to include in every case
study, formalize those elements, and stick to them.
Start with a bang. Use action verbs and emphasize benefits in the case study title and subtitle. Include a short
(less than 20-word) customer quote in larger text. Then, summarize the key points of the case study in 2-3
succinct bullet points. The goal should be to tease the reader into wanting to read more.
Organize according to problem, solution, and benefits. Regardless of length, the time-tested, most effective
organization for a case study follows the problem-solution-benefits flow. First, describe the business and/or
technical problem or issue; next, describe the solution to this problem or resolution of this issue; finally,


describe how the customer benefited from the particular solution (more on this below). This natural story-
telling sequence resonates with readers.
· Quantify benefits when possible. No single element in a case study is more compelling than the ability to
tie quantitative benefits to the solution. For example, "Using Solution X saved Customer Y over $ZZZ, ZZZ
after just 6 months of implementation;" or, "Thanks to Solution X, employees at Customer Y have realized a
ZZ% increase in productivity as measured by standard performance indicators." Quantifying benefits can be
challenging, but not impossible. The key is to present imaginative ideas to the customer for ways to quantify
the benefits, and remain flexible during this discussion. If benefits cannot be quantified, attempt to develop a
range of qualitative benefits; the latter can be quite compelling to readers as well.

Q 4. Would case studies be considered as scientific research? Why or why not?
ANSWER.

Science is a tool for study of the physical universe

Science is a means of studying the physical world, it is not an approach that can answer all important
questions. Those who offer science as the answer to all questions are as mislead as those who blame science
for all our problems. Fundamental questions about art, religion, the meaning of life, and our personal lives
are simply outside the realm of science.

Scientific Knowledge

Some people believe that since at times we revise our ideas in science, scientific knowledge is no different
than myths or legends, and our knowledge does not progress.

Nonsense. We may refine our ideas often and change them completely occasionally, but the success of
science is difficult to question. There are different levels of certainty in scientific knowledge, and there are
clear examples of progress:

The Earth is flat.
The Earth is a sphere.
The Earth is an oblate spheroid.

That sure looks like progress to me.

We can describe scientific knowledge a number of ways, the classification below if from a book H.H. Bauer.

Frontier Science - is information from ongoing research efforts reported at scientific meetings (an
now the INTERNET).
Primary Scientific Literature - is contained in the scientific journals most often published by
organizations within the scientific community. This research has usually been through at least one
level of peer review and is more reliable than the Frontier knowledge.
Secondary Scientific Literature - consists of review articles and monographs that sift and synthesize
the primary literature and includes another level of peer review.
Textbook Science - is the result of more sifting of the research information and the secondary
literature. Generally, this is the most reliable of scientific knowledge, provided the author of the text
was fair and impartial in the presentation of the material.

The Principle of Universality


So, we learn about nature by uncovering the patterns or rules that govern certain processes. In addition to
presuming the existence of these rules, scientists make another assumption called the principle of
universality*:

The laws of nature that we discover here and now are true throughout the universe and have been in effect
for all time.

For much of the history of science, this principle was unknown, and if espoused, would have been
considered heretical. However, we have evidence to support the hypothesis.

*Read James Trefil's book, Reading the Mind of God, for more details.

The Greeks

In the west, our scientific tradition began with the Greeks, who believed that the key to understanding nature
was reason. They thought observation distracted study from the true nature of an object, and hence did not
base their work on empirical evidence.

They also believed that the laws of nature were different for objects in the heavens, and objects on Earth.

For nearly 2000 years after Aristotle, study of nature was dominated by the idea that natural processes were
in different parts of the universe.

Q 5. What are the contents of research reports?
ANSWER.
CONTENTS OF A RESEARCH REPORT
The information in the first part of this section, Journal Articles, Books, Chapters in Books, Peer
Reviewed Published Conference Proceedings, Non-peer Reviewed Published Conference
Proceedings is filtered and extracted to formulate the Preliminary Publication Count for the Department of
Education. This is a crucial step in the subsidy calculation process and it is of the utmost importance that this
information must be as comprehensive accurate as possible. All research publications, which appeared in
2004, must be included, even if they are "in press". There will be an opportunity early in February to submit
volume and page numbers of papers, which have appeared in the interim. Publications should be listed using
the Harvard referencing system, without using italics or bold. Journal names must appear in full.
Abbreviations will be returned to departments for expansion. (Theses passed for higher degrees are subsidy
earning but this information is not included in the Preliminary Publication Count.)
The second part of this section, Published Conference Abstracts, Patents, Theses & Dissertations
passed for Higher Degrees, University Publications & Publications of a Popular Nature - Unrefereed
Journal Articles, Newspaper Articles, CD's, Online Works, Extension and Development Work,
Creative Work, Consultancy and Other Activities based on Expertise Developed in Research (gives
departments the opportunity to demonstrate the extent and nature of their extension and development work),
Motivation for the addition of a South African Journal to the list of South African approved journals.
The work included here is not subsidy earning but nevertheless is an important aspect of scholarly activity at
UCT.
JOURNAL ARTICLES


This category covers all articles in journals. Articles fall into 2 categories - those for which the university
earns subsidy and are published in 'approved' journals; and those for which the university does not get a
subsidy. Please ensure that journal names appear in full and points below are clearly stated when submitting.
1. Surnames & initials of authors 3. Title of article 5. Volume number 7. Page numbers of article 2. Year 4.
Journal name 6. Issue number
BOOKS

This section must include ALL books, scholarly peer-reviewed, textbooks, novels, coffee-table books, etc
produced by UCT researchers. It should also include edited Conference Proceedings produced in a book
format where a UCT staff member or researcher is the editor or part of the editorial panel. Details of year of
publication, editor/s, publisher, place, total number of pages of books must be provided.
1. Surnames & initials of authors 4. Target group/audience of book (only for subsidy-earning books 7. ISBN
number (only for subsidy-earning books) 2. Year 5. If 2nd/3rd etc. edition, provide page numbers of new
sections (only for subsidy-earning books) 8. Page numbers of book 3. Title of Chapter 6. Evidence of peer
review (statement from publisher on peer review policy) (only for subsidy- earning books) 9. Place of
publication and publisher
PEER REVIEWED PUBLISHED CONFERENCE PROCEEDINGS
This should include all papers published in Conference Proceedings, which are substantial refereed
publications, which will be the final and only publications of that material. This does not include published
abstracts. Peer-reviewed published conference proceedings count for subsidy purposes and there must be
evidence of the peer-review procedure. Please note that unpublished conference proceedings are not
included.
1. Surnames & initials of authors 4. Title of conference 6. Page numbers 2. Year 5. Evidence of peer review
7. ISBN number 3. Title of paper 6. Place of conference
NON-PEER REVIEWED PUBLISHED CONFERENCE PROCEEDINGS
This section includes published proceedings that have not been submitted to a strict peer-review process, and
as such, are not subsidy-earning but are included in the annual research report.
PUBLISHED CONFERENCE ABSTRACTS

This section should include abstracts of papers published in the formal scientific literature only. However,
authoritative works such as plenary, honorific and invited keynote addresses/papers given at conferences
may also be included.

Q 6. Write short notes on the following:
a. Median
b. Standard Deviation
a. Median
ANSWER.
Median describes something in the middle or midpoint. (adjective)
When something is scheduled to last for two months, one month is an example of the median timeframe.

The median is the middle of a range of values. (noun)
An example of median is the number 50, which is the middle of the range of the values 1-100.


YourDictionary Definitions. Copyright © 2012 by LoveToKnow Corp.
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See median in Webster's New World College Dictionary
adjective
1. middle; intermediate

2.

a. designating a line extending from a vertex of a triangle to the middle of the opposite side
b. designating a line joining the midpoints of the nonparallel sides of a trapezoid
3.

a. designating the plane that divides a body or part into symmetrical parts
b. situated in this plane
4. STATISTICS
a. designating the middle number in a series containing an odd number of items (Ex.: 7 in the series 1, 4, 7,
16, 43)
b. designating the number midway between the two middle numbers in a series containing an even number
of items (Ex.: 10 in the series 3, 4, 8, 12, 46, 72)
noun
1. a median number, point, or line

2. an artery, vein, nerve, etc. in the middle of the body or along the imaginary plane that bisects the body
into the right and left halves

3. ☆the strip of land separating the lanes of opposing traffic of a divided highway

in full median strip
Related Forms:



May 2012
Master of Business Administration - Semester 3
MB0051: “Legal Aspects of Business
(4 credits)
(Book ID: B1207)
ASSIGNMENT- Set 1
Marks 60

Q1. What are the sources of law? Explain.
ANSWER.
A: - British Business Law

British was the first nation to development market economy business rules and regulations in the world.
All the countries started to follow British business transaction. There is direct of British impact of business
rules in the world. It means our business rules are influenced by British rules. There is an important role of
British business rule to develop our business law. So it is taken as an important source of Nepalese business
law.

 What is the source of Nepalese Business Law?

B: - custom and usage

When there were no business rules in the world the earlier business cultural and tradition to manage
and regulate business transaction. A large part of our business rules our business rules are influenced by that
culture and tradition. Before making business rules our law makers follow that business culture and
tradition. It means it helps us to make good business rules. Therefore it is also a source of business law.

C: - Law Makers (Legislative) (Statutes)

Law makers are representatives elected or selected by using our voting rights. The body of the law
makers is called legislative. The major faction of this body is making rules and regulation for the people so
many business rules are the product of this body. It means the origin of so many business rules is legislative
so we should considered it as a major source of business law. E.g. banking act, insurance act, tax act,
transportation act, company act, agency act etc. [90% of business law are formed by this business law.]

D: - Opinion of Experts

The experts can help us to make good business rules. Our law makers take opinion and guidelines from
the exports before making business rules. If we have good business rules our businessman can managed,
regulate and lead business organization successfully. The experts are the manufactures helping WTO create
good business environment in the business community so experts are considered as a source of business law.

Q2. What is meant by contract? Explain about “quasi contracts”
ANSWER.

A contract is an agreement, enforceable by law, made between at least two parties by which rights
areacquired by one and obligations are created on the part of another. If the party, which had agreed to

dosomething, fails to do that, then the other party has a remedy. Example: D An airline sells a ticket on
1January to X for the journey from Mumbai to Bangalore on 10January. The Airlines is under an
obligationto take X from Mumbai to Bangalore on 10 January. In case the Airlines fails to fulfill its promise,
X has aremedy against it. Thus, X has a right against the Airlines to be taken from Mumbai to Bangalore on
10January. A corresponding duty is imposed on the Airlines. As there is a breach of promise by thepromisor
(the Airlines), the other party to the contract (i.e., X) has a legal remedy. Meaning of quasicontracts:
„Quasi Contracts‟ are so
-called because the obligations associated with such transactions could neither be referred as tortuousnor
contractual, but are still recognized
As enforceable like contracts, in courts. According to Dr Jenks, quasi contract is ―a
Situation in which law imposes upon one person, on grounds of natural justice, an obligation similar tothat
which arises from a true contract, although no contract, express or implied, has
in fact been entered into by them‖.
Cases which are treated as quasi contractsFollowing are the cases which are to be deemed quasi contracts:1.
Claim for necessaries supplied to aperson incapable of contracting or on his account. If a person, incapable
of entering into a contract oranyone whom he is legally bound to support is supplied by another person
with necessaries suited to hiscondition in life, the person who furnished such supplies is entitled to be
reimbursed from the propertyof such incapable person(Sec.68).2.Reimbursement to a person paying money
due by another inpayment of which he isinterested.A person who is interested in the payment of money
which another isbound by law to pay, and who, therefore, pays it, is entitled to be reimbursed by the other.
(Sec.6
Q3. What are the rights of consumer under consumer protection act?
ANSWER.

For the first time in the history of consumer legislation in India, the Consumer ProtectionAct, 1986 extended
a statutory recognition to the rights of consumers. Sec.6 of the Actrecognizes the following six rights of
consumers:1.Right to safety,i.e., the right to be protected against the marketing of goods and services which
arehazardous to life and property.2.Right to be informed,i.e., the right to be informed about the quality,
quantity, potency, purity, standard and priceof goods or services, as the case may be, so as to protect
the consumer against unfair tradepractices.3.Right to choose:It means right to be assured, wherever possible,
access to a variety of goods and servicesat competitive prices. In case of monopolies, say, railways,
telephones, etc., it means rightto be assured of satisfactory quality and service at a fair price.4.Right to be
heard,
i.e., the consumers‟ interests wi
ll receive due consideration at appropriate forums. It also includes right to be represented in
various forums formed to consider the consumers‟ welfare.
5.Right to seek redressal:It means the right to seek redressal against unfair practices or restrictive trade
practices orunscrupulous exploitation of consumers. It also includes right to fair settlement of thegenuine
grievances of the consumers.6.Right to consumer education:It means the right to acquire the knowledge and
skill to be an informed consumer
QUESTION4. Explain the purpose and meaning of contract of guaranteeAns. Purpose of
guarantee.
ANSWER.
The contracts of guarantee are among the most common business contracts and are usedfor a number of purposes. These are: i)
the guarantee is generally made use of to secureloans. Thus, a contract of guarantee is for the security of the creditor.ii) The
contracts of guarantee are sometimes called performance bonds. For example, in the case of aconstruction project, the builder
may have to find a surety to stand behind his promise toperform the construction contract. Also employers often demand a type
of performancebond known as a fidelity bond from employees who handle cash, etc., for the good conductof the latter. If an
employee misappropriates then the surety will have to reimburse theemployer.iii) Bail bonds, used in criminal law, are a form of
contract of guarantee. A bailbond is a device which ensures, that a criminal defendant will appear for trial. In this way aprisoner


is released on bail pending his trial. If the prisoner does not appear in the court asdesired then the bond is forfeited. Meaning of
contract of guarantee:
A contract of guarantee is defined as ―a contract to perform the promise, or discharge theliability, of a third person in case of his
default‖. The person who gives the guarantee iscalled ―surety‟; the person for whom the guarantee is given is called the

„principal debtor‟ ,and the person to whom the guarantee is given is called the „creditor‟
. A contract of guarantee may be either oral or in writing
QUESTION5. What is partnership? Explain the nature of partnership under „law of
partnership‟ .
ANSWER.
Answer: Meaning and Nature of Partnership
A partnership is defined as ―the relationship between persons
who have agreed to share profits of a business carried on by all, or by any of them
acting for all‖. On analysis of the definition, certain essential elements of part
nershipemerge.These elements must be present so as to form a partnership and are discussed
below.1.Partnership is an association of two or more than two persons.There must be at least two persons
who should join together to constitute a partnership,because one person cannot become a partner with
himself. These persons must be naturalpersons having legal capacity to contract. Thus, a company (which is
an artificial person)cannot be a partner. Similarly, a partnership firm cannot be a partner of
anotherpartnership firm. As regards maximum number of partners in a partnership firm, Sec.11 of the
Companies Act, 1956, puts the limit at 10 in case of banking business and 20 in case of any other
business.2.Partnership must be the result of an agreement between two or more persons.An agreement
presupposes a minimum number of two persons. As mentioned above, apartnership to arise, at least two
persons must make an agreement. Partnership is theresult of an agreement between two or more persons
(who are known as partners after thepartnership comes into existence).3.The agreement must be to carry on
some business.
Q 6. Write a note on the following on Copy Right Act.Ans: Meaning of copyright (
ANSWER.
The term „copyright‟ means the exclusive right,
by virtue of, and subject to the provision of theAct:(a)in the case of literary, dramatic or musical work, not
being a computer program me
–
(i) to reproduce the work in any material form including the storing of it in any medium byelectronic
means; (ii) to issue copies of the work to the public not being copies already incirculation; (iii)to perform the
work in public, or communicate it to the public; (iv) to makeany cinematograph film or sound recording in
respect of the work;(v) to make anytranslation of the work; (vi) to make any adaptation of the work; (vii) to
do, in relation to atranslation or an adaptation of the work, any of the acts specified in relation to the work
in(i) to (vi);(b) in the case of computer programme
–
(i) to do any of the acts specified in clause (a) above;(ii) to sell or give on hire, or offer forsale or hire any
copy of the computer programme, regardless of whether such copy hasbeen sold or given on hire on earlier
occasions;(c) in the case of an artistic work

–



Master of Business Administration - MBA Semester 3
MK0013– Marketing Research - 4 Credits
Assignment Set- 1 (60 Marks)

Q.1 Distinguish between product research and new product research. Explain with
examples.

ANS.
Q.1. Distinguish between product research and new product research. Explain with examples.
Answer.
Product Research & New Product Research

Effective product market research -- for new products and existing products -- is well integrated with R&D
and technical product design functions. For consumer or business B2B product market research, we take a
global approach, incorporating appropriate market research at each design stage: The goal is to align astute
technical product R&D, product innovation and design with market demand. We include in our services the
following new product development and research services:
New Product Development Stages
For new product development market research, the question becomes one of matching the stage of new
product development with the right creative or product market research method. We use the Marketing
Intelligence Platform to guide the use of the three forms of Intelligence --Ideas, Data, & Drivers -- to the
product development process. We provide consulting and specific new product research market research
capabillities at each new product development stage.
Product development market research methods and tools used may vary according to the product type, the
extent of incremental change from other products, the investment and risk factors, and the costs of seeding
the new product in the marketplace.

Product development is a sequential decision process. It's a series of decisions, not one. It is key, therefore,
to concentrate attention on the precise new product decision at hand, and think through the market research
and creative tools needed for that stage.
Q.2 How to write a marketing report and what quality is to be ensured?

Answer:
Marketing Report

A marketing report, also commonly referred to as a marketing plan, lays out the marketing strategy for a
company‘s product, brand or business unit. The report describes how different elements of the marketing
mix—product, price, promotion and placement—will work together to achieve your company‘s goals and
objectives. Most marketing departments rely heavily on these plans and use them as road maps to


successfully navigate through and execute a variety of programs and sales campaigns.

Instructions

Step 1:
Developing a Marketing Report

Begin with an executive summary. The executive summary functions as a high-level overview and allows
top managers to easily recognize the goals and suggestions proposed in the report. A table of contents
usually follows the executive summary.
Step 2:
Describe the current market environment, product, competition and distribution channels for the product or
service. This analysis details the company‘s brand or products, sales and pricing, as well as distribution
trends, partnerships and major competitors. Conducting a Strengths Weaknesses Opportunities Threats
(SWOT) analysis also helps identify any market forces or events that can potentially threaten sales or boost
profitability.
Step 3:
Clearly state the marketing goals and issues surrounding your product or brand. For example, if one of your
goals is to acquire 15 new customers, then the marketing report should explore what issues might impact
those objectives.
Step 4:Outline your company‘s marketing strategy. The marketing strategy is the methodology you will use
in order to achieve your marketing goals and respond to market threats and opportunities. Explain what tools
you will use to develop, promote, price and position the product for your customers. This section also
elucidates how each part of the marketing mix will respond to the market threats, opportunities and issues
mentioned earlier in the report.

Q.3 Which are the various types of scales in marketing research and its applications?

Answer:

Scales in marketing research

The term scaling is applied to the attempts to measure the attitude objectively. Attitude is a resultant of
number of external and internal factors. Depending upon the attitude to be measured, appropriate scales are
designed. Scaling is a technique used for measuring qualitative responses of respondents such as those
related to their feelings, perception, likes, dislikes, interests and preferences.

Nominal Scale

This is a very simple scale. It consists of assignment of facts/choices to various alternative categories which
are usually exhaustive as well mutually exclusive. These scales are just numerical and are the least
restrictive of all the scales. Instances of Nominal Scale are - credit card numbers, bank account numbers,
employee id numbers etc. It is simple and widely used when relationship between two variables is to be
studied. In a Nominal Scale numbers are no more than labels and are used specifically to identify different
categories of responses. Following example illustrates -


What is your gender?

[ ] Male
[ ] Female

Another example is - a survey of retail stores done on two dimensions - way of maintaining stocks and daily
turnover.

How do you stock items at present?

[ ] By product category
[ ] At a centralized store
[ ] Department wise
[ ] Single warehouse

Daily turnover of consumer is?

[ ] Between 100 – 200
[ ] Between 200 – 300
[ ] Above 300

A two way classification can be made as follows:

Daily/Stock Turnover Centralized Single
Product Category Department wise
Method Store Warehouse

100 – 200

200 – 300

Above 300

Mode is frequently used for response category.

Example :- If there are 4 different types of fertilizers and if they are ordered on the basis of quality as Grade
A, Grade B, Grade C, Grade D is again an Ordinal Scale.

Example - If there are 5 different brands of Talcum Powder and if a respondent ranks them based on say,
―Freshness‖ into Rank 1 having maximum Freshness Rank 2 the second maximum Freshness, and so on, an
Ordinal Scale results.

Median and mode are meaningful for ordinal scale.

Interval Scale


Herein the distance between the various categories unlike in Nominal, or numbers unlike in Ordinal, is equal
in case of Interval Scales. The Interval Scales are also termed as Rating Scales. An Interval Scale has an
arbitrary Zero point with further numbers placed at equal intervals. A very good example of Interval Scale is
a Thermometer.

Q 1) what is your annual income before taxes? ______ $

Q 2) How far is the Theater from your home? ______ Miles

Answers to these questions have a natural, unambiguous starting point, namely zero. Since starting point is
not chosen arbitrarily, computing and interpreting ratio makes sense. For example we can say that a
respondent with an annual income of $ 40,000 earns twice as much as one with an annual income of $
20,000.

Q.4 Explain the types of hypothesis and the steps involved in hypothesis testing.

Answer:

Hypothesis

A statistical hypothesis is an assumption about a population parameter. This assumption may or may not be
true. Hypothesis testing refers to the formal procedures used by statisticians to accept or reject statistical
hypotheses.

Statistical Hypotheses

The best way to determine whether a statistical hypothesis is true would be to examine the entire population.
Since that is often impractical, researchers typically examine a random sample from the population. If
sample data are not consistent with the statistical hypothesis, the hypothesis is rejected.

There are two types of statistical hypotheses.

 Null hypothesis. The null hypothesis, denoted by H0, is usually the hypothesis that sample
observations result purely from chance.

 Alternative hypothesis. The alternative hypothesis, denoted by H1 or Ha, is the hypothesis that
sample observations are influenced by some non-random cause.

For example, suppose we wanted to determine whether a coin was fair and balanced. A null hypothesis
might be that half the flips would result in Heads and half, in Tails. The alternative hypothesis might be that
the number of Heads and Tails would be very different. Symbolically, these hypotheses would be expressed
as

H0: P = 0.5
Ha: P ≠ 0.5

Suppose we flipped the coin 50 times, resulting in 40 Heads and 10 Tails. Given this result, we would be
inclined to reject the null hypothesis. We would conclude, based on the evidence, that the coin was probably
not fair and balanced.

Hypothesis Tests

Statisticians follow a formal process to determine whether to reject a null hypothesis, based on sample data.
This process, called hypothesis testing, consists of four steps.

State the hypotheses. This involves stating the null and alternative hypotheses. The hypotheses
are stated in such a way that they are mutually exclusive. That is, if one is true, the other must be
false.

Formulate an analysis plan. The analysis plan describes how to use sample data to evaluate the
null hypothesis. The evaluation often focuses around a single test statistic.

Analyze sample data. Find the value of the test statistic (mean score, proportion, t-score, z-score,
etc.) described in the analysis plan.

Interpret results. Apply the decision rule described in the analysis plan. If the value of the test
statistic is unlikely, based on the null hypothesis, reject the null hypothesis.

Decision Errors

Two types of errors can result from a hypothesis test.

 Type I error. A Type I error occurs when the researcher rejects a null hypothesis when it is true.
The probability of committing a Type I error is called the significance level. This probability is also
called alpha, and is often denoted by α.

 Type II error. A Type II error occurs when the researcher fails to reject a null hypothesis that is
false. The probability of committing a Type II error is called Beta, and is often denoted by β. The
probability of not committing a Type II error is called the Power of the test.

Decision Rules

The analysis plan includes decision rules for rejecting the null hypothesis. In practice, statisticians describe
these decision rules in two ways - with reference to a P-value or with reference to a region of acceptance.

 P-value. The strength of evidence in support of a null hypothesis is measured by the P-value.
Suppose the test statistic is equal to S. The P-value is the probability of observing a test statistic as
extreme as S, assuming the null hypotheis is true. If the P-value is less than the significance level, we
reject the null hypothesis.
 Region of acceptance. The region of acceptance is a range of values. If the test statistic falls within
the region of acceptance, the null hypothesis is not rejected. The region of acceptance is defined so
that the chance of making a Type I error is equal to the significance level.


Q.5 What are the limitations of sampling? What are the indicators for an ideal sample?

Answer:

Limitations of Sampling

The limitations of sampling are:

Less Accuracy:
In comparison to census technique the conclusions derived from sample are more liable to error. Therefore,
sampling technique is less accurate than the census technique.

Changeability of Units:

If the units in the field of survey are liable to change or if these are not homogeneous, the sampling
technique will be very hazardous. It is not scientific to extend the conclusions derived from one set of
sample to other sets which are dissimilar or are changeable.

Misleading Conclusions:

If due care is not taken in the selection of samples or if they are arbitrarily selected, the conclusions derived
from them will become misleading if extended to all units.

For example, in assessing the monthly expenditure of university students we select for sample study only
rich students, our results will be highly erroneous if extended to all students.

Need for Specialized Knowledge:
The sample technique can be successful only if a competent and able scientist makes the selection. If this is
done by an average scientist, the selection is liable to be wrong.

When Sampling is not Possible:
Under certain circumstances it is very difficult to use the sampling technique. If the time is very short and it
is not possible to make selection of the sample, the technique cannot be used. Besides, if we need 100%
accuracy the sampling technique cannot be used. It can also not be used if the material is of a heterogeneous
nature.

Characteristics of Ideal Sample

A good sample has following qualities:

Representativeness:
An ideal sample must be such that it represents adequately the whole populations. We would select
those units which have the same set of qualities and features as are found in the whole data. It should not
lack in any characteristic of the population.

Independence:


The second feature of a sample is independence, that is interchangeability of units. Every unit should be
available to be included in the sample.

Q.6 Considering Indian consumers and Indian market trends, mention the ways through which a
marketing researcher can carry out research? If you were to research a market segment, how would
you go about it?

Answer:

Be familiar with the various stages of the marketing research process.

Highlight the importance of the problem/opportunity identification stage of the research process.

Understand the issues related to hypotheses development.

Explain the concept of value of information, and its role in deciding when marketing research is
beneficial.

Introduce the international marketing research process.

How is the market research project conceived, planned, and executed?

The answer, in part, is through a research process, consisting of stages or steps that guide the project from its
conception through the final analysis, recommendation, and ultimate action. The research process provides a
systematic, planned approach to the research project and ensures that all aspects of the research project are
consistent with each other. It is especially important that the research design and implementation be
consistent with the research purpose and objectives. Otherwise, the results will not help the client.

The research process is described in this chapter and Chapter 4. This chapter provides an overview of the
research process, a discussion of the research purpose and research objectives, and a consideration of the
value of research information. Negative findings are as valuable as positive ones. In fact, they are often more
revealing, as they provide valuable insight into customers‘ psyches.

Today, the research process has evolved to encompass decision making. This combined process transforms
mundane marketing research to marketing intelligence. Chapter 4 gives an overview of the research design
and its implementation. Together, these two chapters are the foundation for the rest of the book.



Master of Business Administration

Semester III

MK0012 – Retail Marketing

Assignment

Set- 1

1. How has the growth of retail sector helped the Indian economy?

Answer:

Retail Sector and its Growth

Business Monitor International's India Retail Report provides industry professionals and strategists,
corporate analysts, retail associations, government departments and regulatory bodies with independent
forecasts and competitive intelligence on India's retail industry.
The Q112 BMI India Retail Report forecasts total retail sales will grow from INR20.26trn (US$422.09bn) in
2011 to INR31.78trn (US$825.46bn) by 2015. Strong underlying economic growth, population expansion,
the increasing wealth of individuals and the rapid construction of organized retail infrastructure are key
factors behind the forecast growth.
As well as an expanding middle and upper class consumer base, there will also be opportunities in India's
second- and third-tier cities. The greater availability of personal credit and a growing vehicle population
providing improved mobility also contribute to a trend of 12.1% average annual retail sales growth
throughout the period.
The growth in the overall retail market will be driven largely by the explosion in the organized retail sector.
Domestic retailers such as Reliance Retail and Pantaloons Retail continue to invest heavily in increasing
their store networks and improving in-store offerings, and the impact they have on growth will be boosted
by the arrival of expansion-oriented multinationals.

Reliance Retail was looking to invest up to INR1.5bn (US$33mn) in 150 new stores by March 2011, adding
to its existing 1,050-store network. CEO Bijou Kurien said: ‗Now that the recession is over, several new and
stalled projects will get started. BMI would focus on both value retail as well as specialty, non-food retail
stores.' Reliance recently opened its 103rd Vision Express optical outlet in India in partnership with
GrandVision.

Mass grocery retail (MGR) sales in India are expected to undergo enormous growth over the forecast period.

BMI predicts that sales through MGR outlets will increase by 219% to reach US$28.14bn by 2015. This is a
consequence of India's dramatic, rapid shift from small independent retailers to large, modern outlets,
although it must also be noted that this growth is forecast to come from a very low starting point.

Q.2 Discuss different types of store based retailer. Give examples of each.

Answer:

Types of store based retailer

Retail stores can be small, boutique operations that sell niche products or large, high-turnover emporiums
that sell everything from tires to garden hoses. These stores are good places to look for seasonal, summer
and full-time employment. There are a number of levels of employment, from temporary stock clerk to
career management, to consider.

Specialty Stores

Specialty stores sell just one category of merchandise, although that category may be further divided
into particular departments. For example, a pet store may sell exotic fish and tanks in one area, and
birds, cages and birdseed in another. A bookstore typically has sections for types of literature such as
mysteries, classics, cookbooks and children, among others. To get a job at a specialty store, extensive
knowledge of the product sold will give you an edge.

Department Stores

Department stores vary from discount (Kmart) to high-end (Bloomingdale's) and everything in
between. They are organized by divisions that include several clothing categories, cosmetics and
accessories, jewelry, household goods, furniture, kitchenware. Each department has a manager, and
there are store designers and decorators, plant maintenance and cleaning divisions, store security and
more.

Warehouse Stores

Known as "big box" stores, these giants carry products in bulk. Products include clothing,
automotive parts, sports equipment, nursery plants, toys, bedding, electronics--and even groceries.
Some stores require annual memberships that offer discounts. Others are just huge discount
operations. Warehouse stores may train employees for multiple departments and shift you from one
area to another as needed.

Grocery Stores

Mom 'n' pop groceries, national chains, organic specialists, corner delis--grocery stores come in all
flavors. Departments may include a bakery, deli, produce, meat and floral. Grocery stores jobs vary,
from bagging and stocking to working behind the deli counter, in customer service or at the cash
register. Some grocers offer delivery services, and others have offices that prepare display signs,
weekly newsletters with specials and recipes and handle other administrative duties.

Q.3 Explain the GAP Model of service quality.



Answer:

History of the Gaps Model

The gaps model of service quality was first developed by a group of authors,
Parasuraman, Zeithaml, Berry, at Texas A&M and North Carolina Universities, in
1985 (Parasuraman, Zeithaml & Berry). Based on exploratory studies of service
such as executive interviews and focus groups in four different service businesses
the authors proposed a conceptual model of service quality indicating that
consumers‘ perception toward a service quality depends on the four gaps existing
in organization – consumer environments. They further developed in-depth
measurement scales for service quality in a later year (Parasuraman, Zeithaml,
Berry, 1988).

Theory of the Gaps ModelPerceived service quality can be defined as, according
to the model, the difference between consumers‘ expectation and perceptions
which eventually depends on the size and the direction of the four gaps concerning
the delivery of service quality on the company‘s side (Fig. 1; Parasuraman,
Zeithaml, Berry, 1985).

Q.4 Define Retail store image & describe factors influencing it.

Answer:

Retail store image

Retail store image has been shown to play an important role in store patronage, and it is widely accepted that
psychological factors have a significant role in store image formation. Past research has often involved the
measurement of tangible attributes, or links between store images and consumers‘ self-images. This study
was undertaken to move to the next stage by exploring the link between perceived store image and the
personal values which underlie behavioral choices.

Fashion retailing was selected as an appropriate research domain because of the well-established
associations between clothing choice, personality, self-concept, and personal values. Means-end theory and
laddering methodology were employed in interviews with 30 female respondents. The hedonic values of
―enjoyment and happiness‖ and ―quality of life‖ were found to be the terminal values most sought by
consumers in association with store image. These were linked through the consequence ―nice feeling‖ to the
tangible attributes of ―price‖, ―quality‖ and ―reputation‖. The study illustrates an application of means-end
methodology in a retail environment, and the results provide a platform for fashion store image and
positioning strategies.


Factors influencing

In recent times retail Industries in India has emerged as very important sector in India contributing
significantly to GDP and fuelling the economic growth. Over the years, many researches have been carried
out to understand the consumer‘s perceptions on various types of retailers and their image. The review of
literature indicates a gap in such studies in Indian context. This paper tries to construct a measure for store
image in Indian context. A total of 32 variables were considered for the study and their relative importance
from customers‘ point of view are identified. The study is carried out in eight major cities representing four
major states of the eastern region of India. RIDIT analysis is used to identify the prioritization pattern that
customers assign to different variables. The result shows that cleanliness and tidiness of the store is very
important for attracting the customers and gives a positive image about the store. Next important factor is
décor of the store and layout of the store making movements easier for the customers.

2. Retail Image refers to how a retailer is perceived by image which helps the retail outlet in connecting with
its customers and others; and positioning refers to a firm‘s customers. The retail image should be consistent
with the devising its strategy in a way that projects an image with expectations of the target market to
facilitate association regards to its retail category and its competitors and the between retail outlet and target
customers.

3. To succeed, a firm must communicate a distinctive, clear and Perceptual Mapping in Relation to
Competition: A retailer consistent image. Once its image is established in cannot exist by itself in the
consumer‘s perception consumer‘s minds, a retailer is placed in a niche relative to independent of competing
retail outlets. Depending upon competitors, It is rather difficult to break out of that niche its image, each
retail outlet occupies a point in the if it is firmly implanted in people‘s mind. It is also consumer‘s mind in
relation to other retail outlets. As a challenging to convey a consistent image globally, given result, a
perceptual map is created in the mind of the the different background and expectations of consumers
consumer in which different retail outlets are stationed at around the world. Separate coordinates on the
basis of their respective retail. Thus, a retail image enables a retailer to retail image creation takes place as a
result of the differentiate it from other competing retail outlets by contribution by all components of retail
mix, namely reflecting the essence of the retailer in terms of the product assortment and procurement,
service offered, functional and non-functional benefits it offers to its price charged, promotional campaigns,
retail outlet target customers. atmosphere, location advantages and other factors such So, the way a store
looks goes beyond its fixture, as dedication towards ethical practices and zeal to lighting, carpeting and
decor treatment. It is the result of undertake corporate social responsibility.

4. The retail image should not be confused with retail store planners and designers are under great pressure
to identity. Identity is the way a retail outlet aims to identify create winning environments that not only sell
or position it or the products it sells. On the contrary, merchandise but also attract and entertain people. Such
image is the way the public perceives a retail outlet and designs take the retail experience beyond buying
and the products it offers.

A carefully crafted positioning strategy leads to attitude to keep busy shoppers coming back for more useful
ways: consumer friendly value proposition and than 12 million street corner mom and pop stores have
perceptual mapping in relation to competitors.


These retail outlets are engulfed with diametrically opposite concepts in practice-mass problems like
operational inefficiency, shortage of capital, merchandise and niche retailer. A mass merchandise untrained
manpower, poor selection of merchandise, contribute 8 percent of the GDP and 12 percent of the Asian
J. Business Manage.

Q.5 What is positioning? Discuss various positioning approaches.

Answer:

Positioning

Positioning is the process by which marketers try to create an image or identity in the minds of their target
market for its product, brand, or organization.

Re-positioning involves changing the identity of a product, relative to the identity of competing products.

De-positioning involves attempting to change the identity of competing products, relative to the identity of
your own product.

The original work on positioning was consumer marketing oriented, and was not as much focused on the
question relative to competitive products as much as it was focused on cutting through the ambient "noise"
and establishing a moment of real contact with the intended recipient. In the classic example
of Avis claiming "No.2, We Try Harder," the point was to say something so shocking (it was by the
standards of the day) that it cleared space in your brain and made you forget all about who was #1 and not to
make some philosophical point about being "hungry" for business.

The growth of high-tech marketing may have had much to do with the shift in definition towards
competitive positioning. An important component of hi-tech marketing in the age of the world wide web is
positioning in major search engines such as Google, Yahoo and Bing, which can be accomplished
through Search Engine Optimization, also known as SEO. This is an especially important component when
attempting to improve competitive positioning among a younger demographic, which tends to be Web
oriented in their shopping and purchasing habits as a result of being highly connected and involved in social
media in general.

Q.6 Explain the various elements of communication mix included in retail chain.

Answer:

Communication Mix

Communication is an integral part of the retailer‘s marketing strategy. Primarily, communication is used to
inform the customers about the retailer, the merchandise and the services. It also serves as a tool for building
the store image. Retail communication has moved on from the time when the retailer alone communicated
with the consumers. Today, consumers can communicate or reach the organizations. Examples of this
include toll free numbers, which retailers provide for customer complaints and queries. Another example is
the section called Contact Us on the websites of many companies.

It is believed that every brand contact delivers an impression that can strengthen or weaken the customer
view of the company. The retailer can use various platforms / channels for communication.



Semester III

MK0010 – Sales, Distribution and Supply Chain
Management

Assignment

Set- 1

Q.1 Explain any two types of sales organization structures.

Answer:

Sales organization structure

The sales organization structure represents the selling unit in the legal sense. It is responsible for example
for product liability and other rights of recourse; customer deliveries; business partner contacts; and direct
mailing campaigns. It also helps you to offset business operations internally.

Different components use the sales organization object:

G/L accounting (for account determination)
Controlling (where the sales organization is used as a characteristic in profitability and market
segment analysis)

Different Types of Organizational Structure

Organizations are set up in specific ways to accomplish different goals, and the structure of an organization
can help or hinder its progress toward accomplishing these goals. Organizations large and small can achieve
higher sales and other profit by properly matching their needs with the structure they use to operate. There
are three main types of organizational structure: functional, divisional and matrix structure.

Functional Structure


Functional structure is set up so that each portion of the organization is grouped according to its purpose. In
this type of organization, for example, there may be a marketing department, a sales department and a
production department. The functional structure works very well for small businesses in which each
department can rely on the talent and knowledge of its workers and support itself. However, one of the
drawbacks to a functional structure is that the coordination and communication between departments can be
restricted by the organizational boundaries of having the various departments working separately.

Divisional Structure

Divisional structure typically is used in larger companies that operate in a wide geographic area or that have
separate smaller organizations within the umbrella group to cover different types of products or market
areas. For example, the now-defunct Tecumseh Products Company was organized divisionally--with a small
engine division, a compressor division, a parts division and divisions for each geographic area to handle
specific needs. The benefit of this structure is that needs can be met more rapidly and more specifically;
however, communication is inhibited because employees in different divisions are not working together.
Divisional structure is costly because of its size and scope. Small businesses can use a divisional structure on
a smaller scale, having different offices in different parts of the city, for example, or assigning different sales
teams to handle different geographic areas.

Matrix

The third main type of organizational structure, called the matrix structure, is a hybrid of divisional and
functional structure. Typically used in large multinational companies, the matrix structure allows for the
benefits of functional and divisional structures to exist in one organization. This can create power struggles
because most areas of the company will have a dual management--a functional manager and a product or
divisional manager working at the same level and covering some of the same managerial territory.

Q.2 Explain different sales strategies.

Answer:

Sales strategy

 A sales strategy sets out in detail how you will get your product or service in front of people who
need it. Looking at it strategically will give you a comprehensive, methodical approach to ensuring
you marketing your business correctly and you are approaching the right clients.
 A sales strategy can be based on your business and marketing plans. It looks at how you will deliver
objectives set out in your marketing plan, as well as how you have chosen to segment your target
market and how you will fund you marketing activities.



 A sales strategy is not the same as a marketing strategy. Whereas marketing is about getting your
name out there and tempting new customers or rekindling interest in your business, a sales strategy is
more about how you close the deal.
 In order to build a comprehensive strategy for your entire business, you will need to sit down and
come up with a different sales strategy for each of your product lines. While they may all end up
looking very similar, but it's important to be aware of subtle differences between your products and
the customers who pay for them.

Different sales strategy:

1. Define your target market.
Knowing this is critical to your sales success. You aren‘t going to do business with everyone. And even if
you were, you have to start somewhere. You have to have a place where you can focus in order to build up
that momentum we talked about.
.
2. Determine your outreach.
Will you cold call or network or both? I have a system that works really well for my clients. It goes like this:
Once you‘ve defined your target and created the list, reach out to your networks to see if you are connected
in any way to the person or organization you seek. This includes direct outreach – emailing or calling them –
and exploring your LinkedIn contacts. Remember, you are looking for an introduction. That‘s it! You want
the opportunity to meet with the prospect. When your friend or associate introduces you to the prospect,
follow up and set up the meeting.
Next, take the ones on the list you don‘t have a connection to and cold call them. This could mean sending
them an introductory letter or postcard, or picking up the phone and calling them. If you send an
introductory letter or postcard, you must tell them that you will call to follow up – and then follow up! You
can‘t leave the action in their hands. The process is yours to conduct, not theirs.

4. Know your questions.
5. Before you go on a sales appointment, create a list of questions to ask the prospect. This is the time
for you to really get to know them, their needs, their business practices. It is not the time for you to
talk endlessly about your product or service. If they look like a qualified prospect, provide them with
a quote. If they don‘t, walk away.
5. Deliver and build.
6. Deliver on what you said you were going to do for the prospect. Then make sure you build the
relationship. Don‘t expect them to stay with you or use you for other needs if you aren‘t taking the
time to build the relationship with them. The sales process doesn‘t end with the sale.

Q.3 What do you mean by compensation? Explain various modes of compensating sales team.

Answers:



Compensation

Compensation is the remuneration received by an employee in return for his/her contribution to the
organization. It is an organized practice that involves balancing the work-employee relation by providing
monetary and non-monetary benefits to employees.
Compensation is an integral part of human resource management which helps in motivating the employees
and improving organizational effectiveness.

Components of Compensation System
Compensation systems are designed keeping in minds the strategic goals and business objectives.
Compensation system is designed on the basis of certain factors after analyzing the job work and
responsibilities.

Components of a compensation system are as follows:
• Job analysis
• Salary structures
• Pay structure
Various Modes of Compensating the Sales Force are as under:

Salary

A straight salary payroll is set amount of money based upon hour or days worked. Deductions for provident
fund, income taxes and other fringe benefits are fixed and the work of accounting is reduced. The security of
salary is a strong factor in lowering turnover in a sales force.

Applicability of salary method
This method is commonly used by:

Highly seasonal industries
High-tech industries
Trade salespeople
Route salespeople
Missionary and educational salesmen
Group selling

Straight commission
Paying a commission is a variable expense rather than a fixed one. A straight commission pay plan has
many advantages. Straight commission is adopted by the performance-oriented firm that pay sales person for
their achievement. In this each person is paid a percentage of their sales. It is desirable for a company
suffering from a severe cash shortage since the commission need not be paid until proceeds are received
from a sale. Flexible commission rates can be a strong incentive and many organizations are successful
because the sales force enjoys a liberal commission schedule. For example, sales agents working for various
insurance companies are paid commission on the basis of policies received.

Target commission


A straight commission is paid on sales volume. On a fixed commission base, a fixed percentage of sales
volume is paid to the sales force. Other plans call for increase in rate as volume increases. A fixed rate
commission is easy to figure and administer. If the rate is 2 per cent, it stays at that percentage whether the
salesperson sells goods worth Rs. 40,000 or Rs. 4,00,000. A progressive commission rate accomplishes a
major objective of most companies: it provides a constant incentive to the sales force to do better.

Q.4 What are the challenges faced by International sales managers?

Answer:

Challenges faced by International sales managers

Sales managers are facing a set of challenges that they've never experienced before. They think their team is
focused on generating sales, but they are completely distracted.

As a sales manager, for years, you've had Human Resources preaching to you about the importance of work-
life balance for your sales team. They reminded you that studies showed that productivity increased when
employees had balance between their work life and their personal one. They told you that the team needed
time to recharge their batteries so they could sell more for the company.

Some still talk about work-life balance, but the truth of the matter is that this is a yesterday issue. Work-
life implies that "work" is a stressful world and "life" is a place of solace. Those days are gone with the way
our economy has evolved. Your sales team is getting it from both sides now. They have unprecedented, high
levels of stress at work and at home. The former life of solace is now filled with concerns of mounting debt,
drastic drops in home values, a real fear of job loss, and disgust over their investment portfolio.

Since this is a relatively new issue, most sales managers have not been trained how to help their team
regain their focus to drive productivity (a.k.a. sales). As a sales manager, what can you do to regain the
reigns of the team and lead them to sales success?

Communicate, even…over communicate. Open and honest discussion about the present state of
affairs helps to relieve the angst that the team is experiencing. As a manager, you may be in a
leadership chain, but the team looks to their direct leader for guidance and support.
Hold the team accountable. While empathetic and understanding, the sales leader needs to remind
the team of the task at hand. Direction provided to the team should be clear and team members
should be held accountable for performance.
Coach them. Little things can help your team regain their sales edge. Suggest that they not start their
day by watching the morning news. Have them read the news online so they have total control over
which news to become informed. They control the information saturation point, not the television
media.
Lead by example. While challenging, put on your game face and show confidence. Keep the
conversation on the task at hand, not external influences. Smile! If you walk around showing stress,
your sales team will mirror your behavior. They will think something is wrong and sales paralysis
enters.
Be visible! When the number of closed door meetings increases, sales people speculate that
something is wrong. While a productive meeting may be taking place inside, on the other side of the
door, your entire sales team is talking about what you may be discussing in your meeting. In the
absence of direct knowledge, your sales team will guess the meeting is about gloom and doom. Limit


your closed door meetings. Be visible with your sales team. Join them on sales calls. Meet with
clients.
Q.5 What do you mean by relationship marketing & also explain three types of consumer.

Answer:
Relationship marketing

Relationship marketing or selling is a style of selling that relates to the fashion in which you try to close a
deal.

In this style of closing you try to relate to the client/customer and focus directly on their needs for a long
term selling relationship. You wouldn't be using undercutting discount or perks over your competition, but
would focus on your after sales servicing and "personal availability".

This style's purpose is to keep a permanent long term client over a cut priced quick deal in which the
customer may or may not return for your product or service ever again.

There are different industries and products which either style me be advantageous. If you have a very service
intensive product, relationship selling is the best way to go. If you cut into the price too much you will not
have the margins to service it and will sour the relationship.

Explain three types of consumer

It seems as though we are constantly faced with the issue of trying to find new customers. Most of us are
obsessed with making sure our advertising, displays, and pricing all "scream out" to attract new customers.
This focus on pursuing new customers is certainly prudent and necessary, but, at the same time, it can wind
up hurting us. Therefore, our focus really should be on the 20 percent of our clients who currently are our
best customers.

In retail, this idea of focusing on the best current customers should be seen as an on-going opportunity. To
better understand the rationale behind this theory and to face the challenge of building customer loyalty, we
need to break down shoppers into five main types:
Loyal Customers: They represent no more than 20 percent of our customer base, but make up more than 50
percent of our sales.

Discount Customers: They shop our stores frequently, but make their decisions based on the size of our
markdowns.

Impulse Customers: They do not have buying a particular item at the top of their "To Do" list, but come
into the store on a whim. They will purchase what seems good at the time.

Need-Based Customers: They have a specific intention to buy a particular type of item.

Wandering Customers: They have no specific need or desire in mind when they come into the store.
Rather, they want a sense of experience and/or community.
If we are serious about growing our business, we need to focus our effort on the loyal customers, and
merchandise our store to leverage the impulse shoppers. The other three types of customers do represent a


segment of our business, but they can also cause us to misdirect our resources if we put too much emphasis
on them.

Let me further explain the five types of customers and elaborate on what we should be doing with them.

Q.6 Assume yourself to be the sales manager of a car showroom. How will you ensure that the
selection procedure is smooth and you select right candidates for the job?

Answer:

Sales Personnel are the people employed to sell the goods or services (mainly of an organization). People
who are responsible for the sales of either a single product or the entire range of an organization's products
can be called sales personnel. Sales personnel normally report to a sales manager.

The job of sales personnel involves a number of responsibilities. It is the income producing division of a
business.

The salesperson is responsible for:

Providing profit contribution
Creating a proper image for the company and it's products/services
Achieving the sales targets of the organization
Satisfying the customers and participating in marketing activities
He/she is responsible to the customer and society for continuing growth of the organization. He has
multifarious activities, including setting goals and achieving them, building sales organizations and
managing them.

For example, in Eureka Forbes Pvt. Ltd. they called their sales force as sales champs (champions) as they
are responsible for the direct marketing of company‘s products and revenue generation.

Qualities of good sales personnel

Sales people are the backbone of the organization because they have to face customer and interact with
them. Some people say, salesmen are born salesmen, while others believe that training can help in making
good salesmen. Irrespective of these opinions, good salesman has certain qualities and abilities as a result he
is able to perform better than others. In this section, we will discuss qualities of a good sales person.

Philip Kotler has identified two basic qualities of a good sales person namely, empathy and persuasion.
Some of the qualities of a good sales person are as follows:

Ability to estimate customer's needs and desires: He is alert and quickly determines what the customer
wants and the best way to sell.

Ambition: He likes to do a good job and is interested in getting ahead with company‘s goals and sales
objectives.



Appearance: Appearance means a lot today and the successful salesman is neat and organized. He presents
himself well in person. Also, he keeps his desk books and manuals neat and ready for use.

Business sense: He is quick to learn the strengths and weaknesses of the company and makes an effort to
improvise on the company‘s strengths.

Courtesy: He reveals a sincere desire to help customers and treats them as
guests even when he visits their places of business.

Creativeness: Imagination, vision and the ability to create ideas make your man dynamic.

Enthusiasm: A salesman must radiate enthusiasm during and after the sales call.

Figure sense: He should have the mathematical ability to figure and fill up order form correctly and to make
the necessary reports.

Flexibility: A good salesman is able to adapt himself to a variety of customers. Each contact may require a
adapting the sales talk, speech habits and even appearance.

Friendliness: A salesman should be able to make people like him and he must like to meet people.

Health: Good health generates energy and energy is needed to sell. Poor health prevents many salesmen
from fulfilling their potentials.

Integrity: A salesman must be trusted to do his job well. He cannot help but he successful when his
customers trust him.

Interest in his job: He likes selling and working for the company.

Knowledge: In some business, sales person must also have a through knowledge of the highly specialized
products or services his employer offers. In some cases, this knowledge can be gained only by years of
experience.

Loyalty: He must be able to impress upon his customers the idea that his company is the best in the
business.

Mental abilities: He has the intelligence to understand your products and those of your competitors. He
must know how to use words, to understand and direct people and to remember names and faces. He should
also be able to understand prospective customers and know how to act under varying conditions.




Semester III

MK0011- Consumer Behavior

Assignment

Set- 1

1. Explain the VAL’s theory and describe each type of consumer?
Answer:

VAL’s theory
VALS ("Values, Attitudes and Lifestyles") is a proprietary research methodology used
for psychographic market segmentation. Market segmentation is designed to guide companies in tailoring
their products and services to appeal to the people most likely to purchase them.
VALS was developed in 1978 by social scientist and consumer futurist Arnold Mitchell and his colleagues
at SRI International. It was immediately embraced by advertising agencies, and is currently offered as a
product of SRI's consulting services division. VALS draws heavily on the work of Harvard
sociologist David Riesman and psychologist Abraham Maslow.
Mitchell used statistics to identify attitudinal and demographic questions that helped categorize adult
American consumers into one of nine lifestyle types: survivors (4%), sustainers (7%), belongs (35%),
emulators (9%), achievers (22%), I-am-me (5%), experiential (7%), societally conscious (9%), and
integrated (2%). The questions were weighted using data developed from a sample of 1,635 Americans and
their partners, who responded to an SRI International survey in 1980.
The main dimensions of the VALS framework are primary motivation (the horizontal dimension) and
resources (the vertical dimension). The vertical dimension segments people based on the degree to which
they are innovative and have resources such as income, education, self-confidence, intelligence, leadership
skills, and energy.
The horizontal dimension represents primary motivations and includes three distinct types:

Consumers driven by knowledge and principles are motivated primarily by ideals. These consumers
include groups called Thinkers and Believers.

Consumers driven by demonstrating success to their peers are motivated primarily by achievement.
These consumers include groups referred to as Achievers and Strivers.

Consumers driven by a desire for social or physical activity, variety, and risk taking are motivated
primarily by self-expression. These consumers include the groups known as Experiencers and Makers.
Let me further explain the five types of customers and elaborate on what we should be doing with
them.


Loyal Customers

Naturally, we need to be communicating with these customers on a regular basis by telephone, mail, email,
etc. These people are the ones who can and should influence our buying and merchandising decisions.
Nothing will make a Loyal Customer feel better than soliciting their input and showing them how much you
value it. In my mind, you can never do enough for them. Many times, the more you do for them, the more
they will recommend you to others.

Discount Customers

This category helps ensure your inventory is turning over and, as a result, it is a key contributor to cash flow. This
same group, however, can often wind up costing you money because they are more inclined to return product.

Impulse Customers

Clearly, this is the segment of our clientele that we all like to serve. There is nothing more exciting than
assisting an Impulse shopper and having them respond favorably to our recommendations. We want to target
our displays towards this group because they will provide us with a significant amount of customer insight
and knowledge.

Need-Based Customers

People in this category are driven by a specific need. When they enter the store, they will look to see if they
can have that need filled quickly. If not, they will leave right away. They buy for a variety of reasons such as
a specific occasion, a specific need, or an absolute price point. As difficult as it can be to satisfy these
people, they can also become Loyal Customers if they are well taken care of. Salespeople may not find them
to be a lot of fun to serve, but, in the end, they can often represent your greatest source of long-term growth.

It is important to remember that Need-Based Customers can easily be lost to Internet sales or a different
retailer. To overcome this threat, positive personal interaction is required, usually from one of your top
salespeople. If they are treated to a level of service not available from the Web or another retail location,
there is a very strong chance of making them Loyal Customers. For this reason, Need-Based Customers
offer the greatest long-term potential, surpassing even the Impulse segment.

2. Discuss Freudian theory of personality. Give practical examples wherever possible.

Answer:

Freudian theory of personality

Sigmund Freud (1856-1939) developed his ideas about psychoanalytic theory from work with mental
patients. He was a medical doctor who specialized in neurology. He spent most of his years in Vienna,
though he moved to London near the end of his career because of the Nazis' anti-Semitism.

Freud believed that personality has three structures: the id, the ego, and the superego. The id is the Freudian
structure of personality that consists of instincts, which are an individual's reservoir of psychic energy. In
Freud's view, the id is totally unconscious; it has no contact with reality. As children experience the
demands and constraints of reality, a new structure of personality emerges- the ego, the Freudian structure of
personality that deals with the demands of reality.

The ego is called the executive branch of personality because it uses reasoning to make decisions. The id
and the ego have no morality. They do not take into account whether something is right or wrong. The
superego is the Freudian structure of personality that is the moral branch of personality.

The superego takes into account whether something is right or wrong. Think of the superego as what we
often refer to as our "conscience." You probably are beginning to sense that both the id and the superego
make life rough for the ego. Your ego might say, "I will have sex only occasionally and be sure to take the
proper precautions because I don't want the intrusion of a child in the development of my career." However,
your id is saying, "I want to be satisfied; sex is pleasurable." Your superego is at work, too: "I feel guilty
about having sex before I'm married."

Remember that Freud considered personality to be like an iceberg; most of personality exists below our level
of awareness, just as the massive part of an iceberg is beneath the surface of the water. Freud believed that
most of the important personality processes occur below the level of conscious awareness.

In examining people's conscious thoughts about their behaviors, we can see some reflections of the ego and
the superego. Whereas the ego and superego are partly conscious and partly unconscious, the primitive id is
the unconscious, the totally submerged part of the iceberg.

How does the ego resolve the conflict among its demands for reality, the wishes of the id, and constraints of
the superego? Through defense mechanisms, the psychoanalytic term for unconscious methods the ego uses
to distort reality, thereby protecting it from anxiety. In Freud's view, the conflicting demands of the
personality structures produce anxiety.

3. Describe cognitive learning theory and cognitive response model

Answer:

Cognitive learning theory

Cognitive learning theory, used in psychology, education, and communication, posits that portions of an
individual's knowledge acquisition can be directly related to observing others within the context of social
interactions, experiences, and outside media influences. In other words, people do not learn new behaviors
solely by trying them and either succeeding or failing, but rather, the survival of humanity is dependent upon
the replication of the actions of others. Depending on whether people are rewarded or punished for their
behavior and the outcome of the behavior, that behavior may be modeled. Further, media provide models for
a vast array of people in many different environmental settings.

Social cognitive theory stemmed out of work in the area of social learning theory proposed by Neal E.
Miller and John Dollard in 1941.

Identifying four key factors in learning new behavior, 1) drives, 2) cues, 3) responses, and 4) rewards,

They posit that if one were motivated to learn a particular behavior, then that particular behavior would be
learned through clear observations. By imitating these observed actions the individual observer would
solidify that learned action and would be rewarded with positive reinforcement. The proposition of social
learning was expanded upon and theorized by Canadian psychologist Albert Bandura from 1962 until the
present.

Social cognitive theory is a learning theory based on the ideas that people learn by watching what others do
and will not do, these processes are central to understanding personality. While social cognitists agree that

there is a fair amount of influence on development generated by learned behavior displayed in the
environment in which one grows up, they believe that the individual person (and therefore cognition) is just
as important in determining moral development.
People learn by observing others, with the environment, behavior, and cognition all as the chief factors in
influencing development. These three factors are not static or independent elements; rather, they are all
reciprocal. For example, each behavior witnessed can change a person's way of thinking (cognition).
Similarly, the environment one is raised in may influence later behaviors, just as a father's mindset (also
cognition) will determine the environment in which his children are raised.
It is important to note that learning can occur without a change in behavior. According to J.E. Ormrod's
general principles of social learning, while a visible change in behavior is the most common proof of
learning, it is not absolutely necessary. Social learning theorists say that because people can learn through
observation alone, their learning may not necessarily be shown in their performance.

4. Describe diffusion process and adoption process.
Answer:

Diffusion of Innovations is a theory that seeks to explain how, why, and at what rate
new ideas and technology spread through cultures. Everett Rogers, a professor of rural sociology,
popularized the theory in his 1962 book Diffusion of Innovations. He said diffusion is the process by which
an innovation is communicated through certain channels over time among the members of a social system.
The origins of the diffusion of innovations theory are varied and span multiple disciplines.

Elements

The key elements in diffusion research are:

Element Definition

Rogers defines an innovation as "an idea, practice, or object that is perceived as new by
Innovation
an individual or other unit of adoption".

Communication A communication channel is "the means by which messages get from one individual to
channels another".

"The innovation-decision period is the length of time required to pass through the
Time innovation-decision process". "Rate of adoption is the relative speed with which an
innovation is adopted by members of a social system".

"A social system is defined as a set of interrelated units that are engaged in joint
Social system
problem solving to accomplish a common goal".


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