smu fall assinment Master of Business Administration - MBA Semester 2 MB0046 – Marketing Management

1. 1
Q.1 Explain the various stages involved in new product
development.
A.1 Newproductdevelopmentprocess:
stage 1-Ideageneration:
New product idea can be generated either from the internal sources orexternal
sources.Theinternalsourcesincludeemployeesoftheorganizationanddatacollected
from themarket. The external source includes customers, competitors and supply
chain members. For example,Ingersoll Rand welcomes new ideas from the General
public.
Stage 2-Ideascreening:
Organization may have various ideas but it should find out which of these ideascanbe
translated into concepts. In an interview to Times of India, Mr.Ratan Tata, chairman
TATAgroupdiscussedhowhisideasawmany changes fromthebasicversion.Hetold
that he wanted to develop carwith scooter engine, plastic doors etc… But when he
unveiled the car, there were many changes in theproduct. This shows that initial idea
willbechangedonthebasisofmarketrequirements.
Stage3 -Conceptdevelopment:
themainfeatureorthespecificdesire thatitcaters toorthebasicappealoftheproduct
is created or designed in the concept development.Concepts used for Tata Nano car
are-
Concept I: Low-end ‘rural car,’ probably without doors or windows and with plastic
curtainsthatrolleddown,afour-wheelversionoftheauto-rickshaw
Concept II: A car made by engineering plastics and new materials, and using new
technologylikeaerospaceadhesivesinsteadofwelding.
ConceptIII:Indigenous,in-housecarwhichmeetsalltheenvironmentstandards
Stage4 -Concepttesting:
At this stage concept is tested with the group of target customers. If anychanges are
required in the concept or the message it will be done during this stage. Also
theeffectiveness is tested on a minor scale. If the concept meets the specific
requirements,thenitwillbeaccepted.
Stage5Marketingstrategydevelopment:
The marketing strategy development involves three parts. Thefirst part focuses on
target market, sales, market share and profit goals.TATA’s initial business
planconsistedsalesof2lakhscarsperannum.Thesecondpartinvolvesproductprice,
distribution andmarketing budget strategies. TATA’s fixed Rs 1 lakhs as the car price,
and finding self employedpersonswho work like agent to distribute the cars. The final
partcontainsmarketingmixstrategyandprofitgoals.
Stage6-Businessanalysis:

2. 2
it is the analysis of sales, costs and profits estimated for a new product andto find out
whetherthesealignwiththecompanymissionandobjectives
stage7 -Productdevelopment:
during this stage, product is made to undergo further improvements,new features or
improvised versions are added to the product. There is also scope for innovation
andusingthelatesttechnologyintotheproduct.
Q.2 Discuss the importance of SWOT analysis to develop
effective marketing mix.
A.2 A tool used by organisations to help the firm establish its Strengths,
Weaknesses, Opportunities and Threats (SWOT). A SWOT analysis is used
as a framework to help the firm develop its overall corporate, marketing, or
product strategies.
Note:Strengths and Weaknesses are internal factors which are controllable
by the organisation. Opportunities & threats are external factors which are
uncontrollable by the organisation.
Strength examples could include:
· A strong brand name.
· Market share.
· Good reputation.
· Expertise and skill.
Q.3 Briefly explain the major external and uncontrollable factors

3. 3
that influence an organization decision making, performance
and strategies.
A. 3 Company’s Macro Environment :-
The major external and uncontrollable factors that influence an
organization's decision making, and affect its performance and strategies.
These factors include the economic factors; demographics; legal, political,
and social conditions; technological changes; and natural forces.
Q.4 Discuss the potential benefits associated with MIS.
A. 4 1) Helps to recognise market trends: MIS helps managers to recognise
market trends, in respect of price, designs of products, fashions, etc. timely
information of the market trend enables the firm to follow the right course
of action.
2) Facilitates marketing planning and control: effective marketing planning
is required in terms of product planning, pricing, promotion and
distribution. such planning will be possible only if the company is
possessing adequate and relevant information. this is also possible through
MIS.
3) Quick supply of information: today a firm has to take quick decisions. for
this purpose it requires fast flow of information which is facilitated by a
properly designed MIS.
4) Improves quality of decision making: a properly designed MIS supplies
reliable and relevant information. with the help of computers and other
data processing equipment, the marketing managers can make the right
decisions at the right time.

4. 4
Q.5 Describe five interdependent levels of basic human needs
(motivators) as propounded byAbraham Maslow.
A. 5 There are five different levels in Maslow’s hierarchy of needs:
1) Physiological Needs
These include the most basic needs that are vital to survival, such as the
need for water, air, food, and sleep. Maslow believed that these needs are
the most basic and instinctive needs in the hierarchy because all needs
become secondary until these physiological needs are met.
2) Security Needs
These include needs for safety and security. Security needs are important
for survival, but they are not as demanding as the physiological needs.
Examples of security needs include a desire for steady employment, health
insurance, safe neighborhoods, and shelter from the environment.
3) Social Needs
These include needs for belonging, love, and affection. Maslow considered
these needs to be less basic than physiological and security needs.
Relationships such as friendships, romantic attachments, and families help
fulfill this need for companionship and acceptance, as does involvement in
social, community, or religious groups.
4) Esteem Needs
After the first three needs have been satisfied, esteem needs becomes
increasingly important. These include the need for things that reflect on
self-esteem, personal worth, social recognition, and accomplishment.
5) Self-actualizing Needs
This is the highest level of Maslow’s hierarchy of needs. Self-actualizing
people are self-aware, concerned with personal growth, less concerned with
the opinions of others, and interested fulfilling their potential.
Q.6 List the important differences between Consumer market
and business markets.

5. 5
A. 6 1. Organizational consumers purchase capital equipment, raw
materials, semifinished goods, and other products for use in further
production or operations or for resale to others, whereas final consumers
usually acquire the finished items for personal, family, or household use.
2. Organizational consumers are likely to require exact product
specifications. Final consumers more often buy on the basis of description,
style, and color.
3. Organizational consumers often use multiple-buying responsibility, in
which two or more employees formally participate in complex or expensive
purchase decisions. Final consumers employ it less frequently and less
formally.
4. Derived demand occurs for organizational consumers because the
quantity of items they purchase is often based on the anticipated demand of
their final consumers for specific finished goods and services; therefore,
organizational consumers are less sensitive to price changes. As long as
final consumers are willing to pay higher prices, organizational consumers
will not object to price increases.
5. Demand is volatile due to the accelerator principle, whereby final
consumer demand affects many levels of organizational consumers.
6. There are fewer organizational consumers than final consumers.
7. Business market consumers tend to be geographically concentrated.
8. Buying specialists are often used.
9. Distribution channels are shorter.
10. As with final consumers, there are many distinctions among
organizational consumers around the world and sellers must understand
and respond to them.
11. Companies doing business in foreign markets must know how to deal
with organizational consumers in those markets.
12. Nations’ cultures have a large impact on the way their organizational
consumers negotiate and reach decisions.