AboutLeo Lingham Expertise human resource management, human resource planning, strategic planning in resource, management development, training, business coaching, management training, coaching, counseling, recruitment,
selection, performance management.
Experience 18 years of managerial working exercise which covers business planning , strategic planning, marketing, sales management,
management service, organization development
PLUS
24 years of management consulting which includes business planning, corporate planning, strategic planning, business development, product management, human resource management/ development,training,
business coaching, etc
Question Assignment SEM-II/2009 - MS 06/ MS 07 / MS 08
Answer AMIT,
HERE IS PART OF MS-06.
BALANCE ANSWERS READY, BUT CANNOT FIT INTO
THE SPACE PROVIDED.
PLEASE SEND THE QUESTIONS TO MY EMAIL ID
leolingham2000@gmail.com
REGARDS
LEO LINGHAM
]======================================
1. a) "Marketing involves much more than selling and advertising." Explain.
DEFINITION OF MARKETING.
What is Marketing ?
It is a process by which
-one identifies the needs and wants of the people.
-one determines and creates a product/service to meet the needs
and wants. [PRODUCT]
-one determines a way of taking the product/service to the market
place. [PLACE]
-one determines the way of communicating the product to the
market place. [PROMOTIONS]
-one determines the value for the product.[PRICE].
-one determines the people, who have needs/ wants. [PEOPLE]
and then creating a transaction for exchanging the product for
a value.
and thus creating a satisfaction to the buyer's needs/wants.
TERMS to understand.
1.Product/Service means a product or service or idea to satisfy
the people's needs / wants.
2.Needs mean when a person feels deprived of something.
3.Wants mean when a person's need is formed / shaped
by personality, culture, and knowledge.
4.Value means the benefits that the customer gains from
owning and using the product and the cost of the product.
5.Satisfaction means the extent to which a product's
perceived performance matches a buyer's expectation.
6.Exchange means the act of obtaining a needed/ wanted
object by offering something in return.
7.Transactions mean a trade off between a buyer / a seller
that involves an exchange at agreed conditions.
Marketing is based on identifying, anticipating and satisfying customer needs effectively and profitably.
It encompasses
- market research,
-product planning / development ,
-product pricing,
-product marketing
-SALES
-promotion,
-distribution,
-customer care,
-BRANDING
-merchandising
-retailing
-website marketing
and much more.
FROM THE ABOVE, YOU WILL SEE ''SALES'' IS
ONE OF THE ELEMENTS OF TOTAL MARKETING.
===========================================================================
DEFINITION OF SALES
What is Sales ?
It is a process by which
-one identifies the people, who have a need. [ PROSPECTING]
-one determines the needs of the people.[ NEEDS ]
-one determines a way of finding a solution to the prospect's problem.[ PROPOSE]
-one determines the way of communicating your product as a solution. [RECOMMENDING]
-one determines the value for the product for the prospect.[ ADVOCATING YOUR PRODUCT].
-one determines / sells benefits of the product to the prospect. [ SELLING BENEFITS]
and then creating a transaction for exchanging the product for
a value. [ CLOSING THE SALE ]
and thus creating a satisfaction to the buyer's needs/wants.
[ CREATING CUSTOMER SATISFACTION]
=============================================
SCOPE OF MARKETING
-----------------------------------------------------
Establish , direct, administer and coordinate the overall product marketing
programs for all Products..
Strategically plan for, develop and profitably penetrate the markets to
which the products, services and capabilities of the company can
be directed. These activities include
-studying economic indicators
-tracking changes in supply and demand
-identifying customers and their current and future needs
-monitoring the competition.
=========================================================
ROLE OF MARKETING IS
-- based on identifying, anticipating and satisfying customer needs effectively and profitably. It encompasses market research, pricing, promotion, distribution, customer care, your brand image and much more.
THIS ALSO INCLUDES
*Market research to determine consumer needs.
*Prototype product development
*Product testing
*Product development
*Product planning
*Pricing of products
*Test Marketing
*Developing marketing strategy
*Development of Market Planning
*Sales Planning
*Distribution Planning
*Advertising planning
*Sales Promotions Planning
*Merchandising Planning
*Retail marketing
*Marketing Research.
*Customer servicing
*Conducting marketing audit
ALSO INCLUDES
*Review brand, its image and what it stands for
*Consider the consistent use of a strap line in your advertisements
*Launch a website and think about e-marketing and interactive website pages to add value
*Adopt the correct pricing strategy for your market sector, competitors, customers & profit
*Create a database of all your customers so that you can market to them again
*Know your customers - find out where they are spending their time and money
*Employ specialists for website creation or use external experts in the field
*Use external professionals for press releases
*Support anyone wanting to train in marketing
*Have a consistent brand message on all literature, websites, business cards & letter heads
*Create a mission statement
*Always plan properly, there are packages such as Microsoft Project which can help
*Use market research to understand your competitors, spot opportunities and lessen risks
*Use the database to market either by postal campaigns, e-mail or even mobile marketing
*Advertise in the correct places, and analyse and learn from each campaign
*Enlist professional designers for your literature, business cards and logos
===================================================
MARKETING SUBFIELDS INCLUDE
STUDY OF Current Situation - MACROENVIRONMENT
economy
legal
government
technology
ecological
sociocultural
supply chain
STUDY OF Current Situation - MARKET ANALYSIS
market definition
market size
market segmentation
industry structure and strategic groupings
Porter 5 forces analysis
competition and market share
competitors'strengths/ weaknesses
market trends
Current Situation - Consumer Analysis
nature of the buying decision
participants
demographics
psychographics
buyer motivation and expectations
loyalty segments
Current Situation - Internal
company resources
financial
people
time
skills
objectives
mission statement and vision statement
corporate objectives
financial objective
marketing objectives
long term objectives
corporate culture
Summary of Situation Analysis
external threats
external opportunities
internal strengths
internal weaknesses
key success factors in the industry
our sustainable competitive advantage
MARKETING RESEARCH
information requirements
research methodology
research results
Marketing Strategy - tPRODUCT
PRODUCT MIX
product strengths and weaknesses
PERCEPTUAL MAPPING
PRODUCT LIFE CYCLE MANAGEMENT/ NEW PRODUCT DEVELOPMENT
BRAND, brand image, and BRAND-EQUITY
the AUGMENTED PRODUCT
product PORTFOLIO analysis
B C G ANALYSIS
CONTRIBUTION MARGIN ANALYSIS
GE MULTI FACTORAL ANALYSIS
QUALITY FUNCTION DEPLOYMENT
Marketing Strategy - MARKET SHAREobjectives
by products,
by customer segments,
by geographical markets
Marketing Strategy - PRICE
PRICING OBJECTIVES
pricing method (eg.: cost plus, demand based, or competitor indexing)
pricing strategy (eg.: skimming, or penetration)
DISCOUNTS AND ALLOWANCES
PRICE ELASCITY and customer sensitivity
PRICE ZONING
BREAK EVEN ANALYSIS at various prices
Marketing Strategy - PROMOTIONS
promotional goals
promotional mix
ADVERTISING reach, frequency, flights, theme, and media
SALES FORCE requirements, techniques, and management
SALES PROMOTIONS
PUBLICITY and PUBLIC RELATIONS
electronic promotion (eg.:WEBSITE or TELEPHONE)
Marketing Strategy - DISTRIBUTION
geographical coverage
distribution channels
physical distribution and logistics
electronic distribution
Implementation
personnel requirements
assign responsibilities
give INCENTIVES
training on selling methods
financial requirements
MANAGEMENT INFORMATION SYSTEMS requirements
month-by-month agenda
PERT or CRITICAL analysis
monitoring results and benchmarks
adjustment mechanism
contingencies (What if's)
Financial Summary
assumptions
pro-forma monthly income statement
CONTRIBUTION ANALYSIS
breakeven analysis
MONTE CARLO METHOD
Scenarios
Prediction of Future Scenarios
Plan of Action for each Scenario
=====================================================
THE OBJECTIVES OF MARKETING
FIRST --PRIME OBJECTIVE OF MARKETING
-is to support and help the organization to achieve the CORPORATE OBJECTIVES.
--------------------------------------------------------------
SECOND OBJECTIVE
-THE SECOND IMPORTANT OBJECTIVE OF MARKETING is to
enable the organization survive and prosper through meeting needs and
wants of customers by matching a company's
capabilities with customer needs / wants.
--------------------------------------------------------------
THIRD OBJECTIVE
-to provide an agreed. consistent and well directed target range of volume
for all departmental functions, which will help them to streamline
their activities for the period.
*finance
*manufacturing/ production
*human resource
etc etc
-------------------------------------------------------------------
FOURTH OBJECTIVE
-to provide the marketing department a tool
to plan and manage its activities, THROUGH MARKETING PLAN.
-----------------------------------------------------------------------------
FIFTH OBJECTIVE
-TO provide a stretch points for setting sub-objectives /planning/ strategies
for MARKETING DEPARTMENT.
*market share target.
*competitive standing target.
*customer awareness target..
*customer retention target
*new products target
---------------------------------------------------------------------
SIXTH OBJECTIVE
-to provide a method devised to achieve the objectives
in the promotion MIX.
---------------------------------------------------------------------------
SEVENTH OBJECTIVE
-TO provide a stretch points for setting sub-objectives /planning/ strategies
for SALES MANAGEMENT
*product coverage.
*customer coverage.
*geographical area coverage.
etc
-------------------------------------------------------------------
EIGHTH OBJECTIVE
-TO provide a stretch points for setting sub-objectives /planning/ strategies
for DISTRIBUTION MANAGEMENT
*distribution penetration target.
-------------------------------------------------------------------------
NINTH OBJECTIVE
-TO provide a stretch points for setting sub-objectives /planning/ strategies
for CUSTOMER SERVICE MANAGEMENT
*customer satisfaction level.
------------------------------------------------------------------
TENTH OBJECTIVE
-TO provide a stretch points for setting sub-objectives /planning/ strategies
for OVERALL CONTROL THROUGH RESEARCH.
*consumer research.
*customer satisfaction surveys.
*internal operation research.
*distribution study
*marketing research
etc etc
===============================================
THE OBECTIVES OF MARKETING COULD ALSO INCLUDE
SETTING METRICS FOR
market share
total
by segments
by channel
customers
total
number/percentage new
number/percentage retained
purchases
rate of purchases
size/volume of purchases
Promotional objectives
level of brand/company awareness
traffic building
(e.g., store traffic, website traffic)
product trials
(e.g. sales promotions, product demonstrations)
sales force
(e.g. cycle time, cost per call, closing rate, customer visits, etc.)
Channel objectives
dealers
total
number/percentage new
number/percentage retained
order processing and delivery
on-time rate
shrinkage rate
correct order rate
Market research objectives
studies initiated
studies completed
R&D objectives
product development
Other objectives
partnerships developed
Awareness
Before a customer buys your product or service they must become aware of it. Awareness is particularly important if you have a new product or service, if your product or service is only bought occasionally or if your market has many competitors and you need to maintain awareness amongst your target market. For example, your objective may be to increase awareness of brand X by 20% by June 2009.
Purchase
This relates to the initial purchase and the purchase of specific products or services in your range. For example your objective may be to increase initial purchase of service X from 5% to 9% by June 2009.
Purchase frequency
This relates to how often your customers buy your product or service. For instance if you have a product or service that has a high gross margin, then you may want your customers to buy it on a regular basis as this will increase the profitability of your business.
Usage
This is different to purchase as the person who buys your product or service may not be the one who actually uses or consumes it. For example, mothers may buy the breakfast cereal but it is the children who are the ones who eat it.
Usage frequency
This relates to how often your customers use/consume your product or service. By getting your customers to use a little more of your product or service can actually translate into more sales over the year. Big business marketers often do this by introducing larger pack sizes.
Average transaction value
This relates to the average amount each of your customers spends per transaction with your business. A simple way of improving the profitability of your business is to encourage your existing customers to increase their average transaction value i.e. purchase slightly more each time.
Distribution
As distribution channels available to customers grow, it is important that you ensure your products or services are available in the most important distribution channels for your market so that your customers don’t switch to your competitors.
Customers
For your small business to grow you may decide to focus on gaining new customers for your business or to retain your most profitable ones.
======================================================
WHAT A MODERN MARKETING ORIENTED ORGANIZATION DOES
FOR ACHIEVING SUCCESS IN ITS FIELD.
- market research,
[conducts marketing research continuosly--pre-product/during product launch/
during the maturity/ consumer research/retail research/test marketing etc etc
==================================================
-product planning / development ,
[they plan/ develop products in a scientific manner, tailoring
it to the exact taste of the consumers]
=====================================
-product pricing,
[conduct price research and position the price point
where the consumer can afford / the company makes good profit.]
==========================================
-product marketing
[the company conducts one of the most effective product marketing
programs in the world.]
==============================================
-SALES
[the company has a wide network of sales representatives
in almost over 180 countries]
======================================
-promotion,
[the company applies varieties of promotions including
sales promotion/trade promotion/consumer promotion/
advertiisng/ public relations ]
=============================================
-distribution,
[when it comes to distribution, they have an unmatched distribution network.
they go for extensive and intensive coverage of the market---that covers
supermarkets/corner stores/gas stations/ schools/colleges/convenience stores/sports complex etc
================================================
-customer care,
[the company has a well crafted customer care program for
the consumers.]
============================================
-BRANDING
[when it comes to branding, they are second to none in the world
''COKE'' say no more]
=====================================
-merchandising
[the company has an extensive program on merchandising like
external displays / internal displays ]
==========================================
-retailing
[ the company has a strong presence in the retail field
supported by active merchandisers]
====================================
-strategic marketing management
[the company has a strong team to manage the
strategic aspects of market--it is highly research based]
==============================================
-market forecast.
[the company uses the finest software to develop
the demand planning and market forecast and sales forecast]
==============================================
-consumer behavior
[the company continuously monitors the consumer behavior
with respect their products]
=====================================
-organizational buyer behavior.
[the company continuously monitors the organization buying behavior
with respect their products ---like schools/ colleges/ business houses]
==========================================
-Strategic market Planning
[the company has a strong team to manage the
strategic aspects of market--it is highly research based]
=============================================
-Market Development.
[ the company develops the market through
*geographical coverage increase.
*current customers usage increase
*new customers increase
etc
============================================
-marketing environments
[the company is sensitive to the environment
and has a number of societal marketing programs.
================================================
-market segmentation/ targeting
[THE company uses the segmentation techniques
heavily targeting the ''15 --45'' age group]
====================================
-field sales planning / development
[the company carries out regular field sales
planning and development program to sharpen/ tune
the field sales team.
===================================
ADDITIONALLY,
THE COMPANY TAILOR ITS MARKETING PRACTICES
Successful businesses focus on getting the basics of marketing right.
Marketing is based on identifying, anticipating and satisfying customer needs effectively and profitably. It encompasses market research, pricing, promotion, distribution, customer care, your brand image and much more.
Some of the things that the company does in marketing practices is to:
*Have a marketing team or individuals who have qualifications in marketing
*Review brand, its image and what it stands for
*Consider the consistent use of a strap line in the advertisements
*Launch a website and think about e-marketing and interactive website pages to add value
*Adopt the correct pricing strategy for the market sector, competitors, customers & profit
*Create a database of all the retailers so that you can market to them again
*Know your consumers - find out where they are spending their time and money
*Employ specialists for website creation or use external experts in the field
*Use external professionals for press releases
*Support anyone wanting to train in marketing
*Have a consistent brand message on all literature, websites, business cards & letter heads
*Create a mission statement
*Always plan properly, there are packages such as Microsoft Project which can help
*Use market research to understand competitors, spot opportunities and lessen risks
*Use the database to market either by postal campaigns, e-mail or even mobile marketing
*Advertise in the correct places, and analyse and learn from each campaign
*Enlist professional designers for literature, business cards and logos
*Stick to what you do best and let the experts help with their specialist knowledge.
#################################################################
1 b) How would you apply your knowledge of marketing concept to create awareness and
communicate the perils in the following :
a) Smoking
b) Safe driving habit
Creating awareness is an important first step toward building audience understanding, influencing opinion and motivating behaviour. But there's a lot more than meets the eye to executing a successful awareness campaign and a lot more to it than enlisting the help of recognizable faces. Commanding audience attention is not as easy as it might appear.
MYRIAD MESSAGES
Over-communication is a way of life. Information bombards the senses from every conceivable source, every waking moment of the day. Communication channels have mushroomed. Not only are there more choices within mediums, but also more mediums to choose from.
At the end of 2002, global use of the Internet was pegged at more than 600 million people--a number that increases every day. At 500,000 words, it would take the average person 28 hours to read a Sunday edition of The New York limes. An 8-ounce container of cereal carries about 1,500 words of copy, and General Motors spends US$365,000 a day to promote Chevrolet in the U.S. market. A 30-second commercial on the popular sitcom 'Friends" costs an average of US$455,700, followed closely by "ER" and "Survivor." But if any old prime time slot will do, the average cost for 30 seconds of airtime is US$115,799.
And that's just the external environment. The internal environment is no less inundated. The competition for share of mind has never been greater. Yet the channels are congested and only a tiny fraction of messages actually get through. Make no mistake, the human mind is capable of holding only so much information.
ATTENTION-GETTING TACTICS
Communicators are face to face with an important challenge: In an information-overloaded society, how do you command attention in a way that creates and anchors awareness? Much of the advertising industry's success has been guided by these seven principles.
1. Without research, you're only guessing. Alice's Cheshire cat said, "If you don't know where you're going, any road will do." The success or failure of awareness campaigns depends on the skill of the strategist to clearly understand the audience-who they are, what they think and how to influence their perceptions. Brand gurus call this "finding a window into the mind."
Enter audience research, Although there is much controversy about the validity of research and different methods, so far no one has come up with a better idea. How do you know what the audience thinks? You ask. How do you know what will influence choice? You study. How do you know whether the message is meaningful and memorable? You test.
2. Answer the question "What's in it for me?" Competing for audience attention is not for the faint of heart. People come in all shapes and sizes, with pre-conceived ideas and opinions that influence your ability to deliver a message.
The human mind operates like a computer, with one important difference: A computer accepts whatever you key into it. The mind does not. The human mind rejects information that doesn't match prior knowledge or experience. The easiest way to create awareness is to build on something that is already familiar. Make it relevant. Make it real. Make it personal. Effective communication answers "What's in it for me?" or "Why should I care?"
3. People respond to emotion. Forget the logic. Find the emotional hot buttons. Make the audience feel something.
Logic-based communication presents the facts but does not engage the audience. Ideas that create an emotional experience build a personal connection with each individual. Awareness is more easily gained if you can touch the audience with a memory. Effective communication first speaks to the heart. The head and hands will follow.
4. Keep the creative focus on strategy. Develop a creative brief to keep you focused. A creative brief links the strategy to the creative execution of the messages. It is here that all the analytical thinking is transformed into razor-sharp direction that becomes a foundation for the creative idea that will drive the message home.
Completing a creative brief is easy, providing you've done your homework:
* Why are you communicating?
* What is the strategy trying to achieve?
* Who are you talking to?
* What do you know about them?
* What do they think?
* What do you want them to think?
5. Less is more. Keep the idea simple and the execution free of clutter and verbosity. The reading vocabulary of the average person is about 8,000 words. The speaking vocabulary is less. Add limited time and competing agendas to the mix and there is no doubt that only the strong survive. Cutting through the clutter depends heavily on the writer's ability to serve up a sharply focused message that gets right to the point.
6. Align the media with the audience. Use a rifle, not a shotgun. With all the noise in the environment, getting the right message to the right audience has never been as challenging. The strategy? Be selective in the choice of media vehicles and channels.
Segment the market, define the audience and find out where they live. What are their media habits--favourite magazines, television programs, radio preferences? Are they likely to be online? Would you find your audience at a football game, in a coffee shop or both?
7. Once is never enough. Frequency builds top-of-mind awareness. Audiences must receive the same message a minimum of four times before it starts to sink in.
Combining above-and below-the-line tactics, use a variety of vehicles to deliver the message. A multimedia campaign anchored by television might be supported by outdoor and print. But don't stop there. Reinforce the program with media relations and special events.
Visible, consistent messages delivered over an extended period of time are more likely to be noticed and remembered. That is why people choose Heinz[R] over other ketchup or Kleenex[R] over other brands of tissue. The audience is constantly reminded to think of the brand name first. The same principle holds true for awareness initiatives.
============================================
An effective media can raise the awareness level and can also bring about sustainable behavior change thereby reducing vulnerability to the Smoking PERILS / Safe driving HABIT.
Media is capable of performing the following roles in preventing Smoking PERILS / Safe driving HABIT.
A Channel for communication and Discussion: One of the roles of Media is to open the channels for communication and foster discussions about Smoking PERILS / Safe driving HABIT and Addressing Smoking PERILS / Safe driving HABIT in the entertainment programs can have an enormous impact on the society at risk.
A vehicle for Creating a supportive and enabling environment : Mass media can be instrumental in breaking the silence that envelopes the Smoking PERILS / Safe driving HABIT and in creating an encouraging behavior for combating with existing social norms and making positive changes in the society.
Facilitator for removing Stigma and discrimination attached with the Smoking PERILS / Safe driving HABIT
A number of media campaigns have focused on the need to overcome prejudice and encourage solidarity with people who have given up such habits.
A tool for creating a knowledge base for Smoking PERILS / Safe driving HABIT
related services: The collaborative efforts of all modes of media in association with NGOs State organizations, service providers have brought to the lime light the availability and source of beneficial services like counseling, testing and other provisions, treatment and social care. The broadcasters and print media have a specific role to play as their efforts have tremendous recall value.
Education through entertainment: For creating an efficacious awareness about Smoking PERILS / Safe driving HABIT
, the messages need to be informative, educative as well as entertaining as these are mutually exclusive.
The education of Smoking PERILS / Safe driving HABIT
has to be spread as if we are selling the product. Thus, a holistic approach for dealing with the emotional, psychological and physical realities is to be adopted.
Mainstreaming: Broadcasters are mainstreaming the Smoking PERILS / Safe driving HABIT
issue across a number of programs, ensuring that the message permeates a diverse range of output , not just outlets and public service messages dedicated specifically to the issue.
Putting Smoking PERILS / Safe driving HABIT
on the News agenda and encouraging leaders to participate: In recent years several leading broadcasters from around the world have found innovative ways to report on the subject.
Sharing resources ad pooling material: Several campaigns were successful as they fully utilized the opportunity of pooling the available resources with others by sharing expertise and material.
Capacity Building: Successful partnerships need not be with other media outlets. Alliances of NGO, Government departments and foundations can bring significant benefit for both the parties.
Media as an institution of oversight, restraint and collaborative efforts: Media can render yeoman’ service in providing accurate and correct news coverage of Smoking PERILS / Safe driving HABIT
facilitate eliciting and generating public response to state sponsored efforts. Such efforts have the potentials to awaken social and political leaders to review their strategies and take mid course corrections in regard to policy concerning Smoking PERILS / Safe driving HABIT
.
In such a process, the media has the potential to influence public opinion and attitudes about Smoking PERILS / Safe driving HABIT
Media too have the capability to bring about transformation in the thinking pattern of the society and thus sowing the seeds of attitudinal changes. The media can be a great facilitator for preventing process while imparting the need for a healthy behavior towards the section of the society and those individuals most vulnerable to Smoking PERILS / Safe driving HABIT and those individuals affected by
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