Marketing Assignment:

1.1)

Henry Ford Tata AceIt was Essentially practicing a Production

ConceptIt was following Marketing concept

This Production concept works better when the market is homogenous to customer needs as

well as offerings of the other suppliers

The Idea was to "sense and respond" to the consumer needs and to develop the right

products.It is the oldest concept. As consumer tastes are

changing rapidly this concept won't work.This marketing concept is the present trend and

consumer interaction, consumer satisfaction, good sales etc are the advantages in this

concept.

1.2)

Assessment of Market Potential: With a booming Indian economy, Tata Motors correctly identified an alternate market of smaller vehicles, which would fulfill the need for a last mile distribution vehicle.

Consumer Interaction: Instead of competing with existing three wheeler majors, Tata's relied on Consumer feedback. Discussions with the transporters, small traders, farmers indicated that customers wanted a vehicle that had low maintenance costs, higher driver safety, and better driving comfort. Tata Motors incorporated all these points of customer feedback to develop Ace which was a runaway success.

1.3)

Functional Benefits:

1) Tata Ace was designed to achieve top speeds of about 8-14 kph higher than that of the other three-wheelers, and also a cargo bed bigger than the existing three-wheelers.

2) Furthermore, owing to its lower turning radius, it could navigate narrow by-lanes, making it suitable for both rural and urban use.

Hedonic Benefits:

1) The sleek appearance as well as the positioning as a truck in mini size reinforced the social prestige aspect.

2) The sporty car-like features were modeled to ensure comfort in ride.

(2)

Science is the study of theories and phenomena related to the physical world based on systematic experiments and observation while Arts is the practical reflection of human’s creativity and imagination.

For Example: Tata swatch water purifier

Steps:

1. This water purifier is designed based on Nano technology

2. Based on historical data before launching a new product, all the variables like market trend, number of competitors, price, product placement etc are evaluated systematically

3. Thinking of Business idea and innovative promotional plan and all marketing tools involves imagination.

Steps 1,2 comes under Science and step 3 falls under the scope of Arts

It can be concluded that Marketing is a blend of Science and Art.

(3)

1. Negative Demand: A major part of the market dislikes the product and may even pay a price to avoid it. E.g vaccinations, dental work, gall bladder operations etc. The marketing task is to analyze why the market dislikes the product and whether a marketing programme consisting of product redesign, lower prices and more positive promotion can change beliefs and attitudes.

2. No Demand: Target customers may be unaware of or uninterested in the product. E.g Farmers may not be interested in new farming methods and university students may not be interested in foreign language courses. The marketing task is to find ways to connect the benefits of the products with people's natural needs and interests.

3. Latent Demand: Consumers may share a strong need that cannot be satisfied by any existing product. E.g a strong demand for harmless cigarettes and more safer neighbourhoods. The marketing task is to measure the size of potential market and develop goods and services to satisfy the demand.

4. Declining Demand: Demand for the organization's products decline. E.g a decline in membership of a church or a decline in school enrolment. The marketing task is to reverse declining demand through creative remarketing.

5. Irregular Demand: Where demand varies on a seasonal, daily or even hourly basis. E.g beaches are undervisited on weekdays and crowded on weekends and holidays. The marketing

task, called synchromarketing, is to find ways to alter the pattern of demand through flexible pricing, promotion and other incentives.

6. Full Demand: Organizations face full demand when they are pleased with their volume of business. The marketing task is to maintain the current level of demand in the face of changing consumer preferences and increasing competition. The organization must maintain or improve its quality and continually measure consumer satisfaction.

7. Overfull demand: Where demand is far higher than the organization can handle. The marketing task, called de marketing, requires finding ways to reduce demand temporarily or permanently. General de marketing seeks to discourage overall demand and includes such steps as raising prices, reducing promotion and service. Selective demarketing consist of trying to reduce demand from those parts of the market that are less profitable.

8. Unwholesome demand: Unwholesome products will attract organized efforts to discourage their consumption. Unselling campaigns have been conducted against cigarettes, alcohol, hard drugs, hand guns, x-rated movies and large families. The marketing task is to get people who like something to give it up, using such tools as fear messages, price hikes, and reduced availability.

(4)

Socially responsiblity marketing concept:

It holds that the organization's task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfaction more effectively and efficiently than competitors in a way that preserves or enhances the consumer's and society's long-term well-being.

Many companies actively engaged in corporate social responsibility campaigns to both motivate employees and attract consumers. As goods become more commoditized, and as consumers grow more socially conscious, some companies are adding social responsibility as a way to differentiate themselves from competitors, build consumer preference, and achieve notable sales and profit gains. They believe customers will increasingly look for signs of good corporate citizenship.

(5)Market place: The market place is physical, such as a store that you shop in.

Shopping for an automobile at a dealer’s lot.

Market space: The market space is digital, such as that you shop on the internet.

Shopping for an automobile via the Internet, eBay or even designing your own car via a manufacturer’s web site

Meta market: Meta market is a web-based market centered around an event or an industry, rather

than a single product. These are markets of complementary products that are closely related in the minds of consumers, but spread across different industries.

Car selling in a Meta market would be a website, that sells cars but you will also find car parts there, add-ons for cars, colors for cars, mechanic’s reviews, etc

(6)Cause marketing or cause-related marketing refers to a type of marketing involving the efforts of a for-profit business and a non-profit organization for mutual benefit.

He may achieve the goal through efforts such as sponsorships, licensing agreements, and advertising. The hotel can sponsor events addressing social issues. As it is a sea-side resort, it can support and sponger efforts to protect marine life, preserve the natural environment, and prevent water pollution.

(7)

a) Network Information Technology: The Digital Revolution has created an information Age that

promises to lead to more accurate levels of production, more targeting communications, more

relevant pricing.

b) Globalization: This  is a process of interaction and integration among the people, companies,

and governments of different nations, a process driven by international trade and investment and

aided by information technology

c) Deregulation: The reduction or elimination of government power in a particular industry,

usually enacted to create more competition within the industry.

d) Privatization: This is the process of transferring an industry from the public sector to the

private sector to increase their efficiency. The public sector is the part of the economic system

that is run by government agencies.

e) Customer Resistance: The fact of people disliking or being unwilling to buy a particular

product or service.

f) Heightened competition: Heightened competition is a market scenario wherein existing sellers

or manufacturers put up with stiff competition, created courtesy the entry of new companies.

This leads to increased promotion costs and shrinks profit margins

g) Industry Convergence: The triple coincidence of Industry alliance and acquisition,

technological platform and market.

h) Retail Transformation: Store based retailers face competition from catalog houses, direct mail

firms, magazines, TV Advertisements and e-commerce. In response, retailers are building

entertainment into their stores with coffee bars, demonstrations and performances.

i) Disintermediation: The removal of an intermediary from a transaction or communication. The

amazing success of early dotcom sites ( amazon, ebay etc) created a disintermediation by

delivering the products by intervening the traditional approach. In response traditional companies

engaged in reinter mediation by adding online services to their offerings.

(8)Marketing shapes consumer needs and wants:

With the vast amount of information available to marketers today and the emphasis on relational marketing, marketers are in more of a position to suggest needs and wants to the public.

Marketers by their efforts increase peer pressure and group thinking by showing examples of what people have and what they do not.

An individual’s freedom to choose is substantially weakened by constant and consistent exposure to a range of needs and wants of the people.

Marketers should understand that when it comes to resisting the pressure to behave according to social standards, that individuals are and can be weak in their resolve.

Marketers must take an ethical position to only target those consumers who are able to purchase their products.

Marketing merely reflects the needs and wants of customers:

The perception that marketers influence consumers purchasing decisions discards an individual’s freedom of choice and their individual responsibility.

With the advent of the Internet, consumers have greater freedom of choice and more evaluative criteria than ever before ,consumers can and do make more informed decisions than previous generations.

Marketers can be accused of influencing wants, along with societal factors such as power, influence, peer pressure, and social status. These factors pre-exist in marketing and would continue to exist if there was no marketing efforts expended.

(9)

The major themes that emerge in these broad shifts are technology, decentralization, and empowerment. People getting smarter and companies face increased global competition. Small businesses generally have the same access as larger firms to the methods and trends that are impacting marketing, enhanced data collection capabilities and the ubiquity of social media. So they began to increase their attention to all aspects of marketing and beginning to encompass marketing as a corporate goal and not just a departmental function.

The major societal forces at work: Two-income families, increased technology, fewer firms, increased consumer education, and empowerment are forcing companies and marketers to shift their thinking about marketing and rethink their best business practices.

Forces:1. A goal to cater more targeted global audience led to produce more and market to reach global with technology including new mobile payments, social media being used as marketing option.2. The Life cycle of present technology/product is being reduced each day, so more R&D and being first in market and bigger marketing boons a business.3. A goal to empower more and develop, several startups is being started using same aggressive marketing options available to all thereby increase in competition.

All leading to think new and follow aggressive marketing strategies to reach more audience.

10.1

The key distinction between a traditional customer-cultivating company.

1).It is organized to push their products and brands (or) services.

1).It is designed to serve customers and customer segments.

2).These companies focus more on brand image

2).These companies focus on building customer relationships.

3).This model of business is like older.

3).this model of business is future trending and competitive.

4).These are product driven. Customer managers doesn’t play bigger role

4).These are customer driven. Customer managers play bigger role

5). No guarantee that company gets customers goodwill back.

5). Helps company maintain long term relationship with customer

10.2

Tesco, a leading UK groceries retailer made significant investments in analytics that have improved customer retention and this helps e-business strategies of Tesco.

Customer Relationship Management is one of the most important and more essential approaches to attain customers and then retaining those customers to establish a higher life time value for every one of them.

CRM describes the broad business strategy of the respected company consists of the sectors of customer-interface and other extra operations related with business and customers.

Tesco uses its data-collecting loyalty card (the Club card) to track which stores customers visit, what they buy and how they pay. This information has helped Tesco tailor merchandise to local tastes and customizes offerings at the individual level across a variety of store formats from sprawling hyper marts to neighborhood shops. Users receive coupons by mail relating to their previous purchases.

10.3American Express also leverages its strategic position between customers and merchants to create long-term value across both relationships. For instance, the company might use demographic data, customer purchase patterns, and credit information to observe that a cardholder has moved into a new home. Amex capitalizes on that life event by offering special Membership Rewards on purchases from merchants in its network in the home-furnishings retail category.

10.4

Although no company has a fully realized customer-focused structure, we can see the features of one in a variety of companies making the transition. The most dramatic change will be the marketing department’s reinvention as a “customer department.” The first order

of business is to replace the traditional CMO with a new type of leader—a chief customer officer.

10.5Chief Customer Officer -An executive who provides the comprehensive and authoritative view of the customer and creates corporate and customer strategy at the highest levels of the company to maximize customer acquisition, retention, and profitability.

The CCO role as we conceive it must be a powerful operational position, reporting to the CEO. This executive is responsible for designing and executing the firm’s customer relationship strategy and overseeing all customer-facing functions. A successful CCO promotes a customer-centric culture and removes obstacles to the flow of customer information throughout the organization. This includes getting leaders to regularly engage with customers.

Chief customer officers are increasingly common in companies worldwide- there are more than 300 today, up from 30 in 2003. Companies as diverse as Chrysler, Hershey’s, Oracle, Samsung, Sears, United Airlines, Sun Microsystems, and Wachovia now have CCOs.

10.1. What are the new customer metrics that measure a company’s marketing success?

Because of this new shift of focus towards cultivating customers from product marketing, a new metric should be used to determine if the strategy is successful. To illustrate, the following are the metrics used for the old traditional approach: Product Profitability, Current Sales, Brand Equity, and Market Share.

For the new approach, it’s: Customer Profitability, Customer Lifetime Value, Customer Equity, and Customer Equity Share. There are different levels of tracking activities to be considered now as well, from the individual level, to the segment and aggregate levels. Each level requires different kinds of information. For example, customer lifetime value is the most important metric for the individual level.

Shifting towards being a customer-centric company has a lot of difficulties, but eventually, this will be the only way to best serve customers.

Question 11: Case Study: The use of marketing mix in product launch- Nivea Visage Young

http://www.8pic.ir/images/b86cx7n8493gvs3ect.pdf

11.1 Describe what is meant by a business being ‘consumer led’.

Consumer led is responding to the needs of consumers in the market.

example: NIVEA is a consumer-led business which made it one of the largest skin care brands in the world. The key to customer-led marketing is deciding who this type of customer is, then focusing all your activity around them.’

11.2. What are the key parts of the marketing mix? Explain how each works with the others.

The key parts of the marketing mix are Product, Price, place, promotion.Product:The first stage in building an effective mix is to understand the market.

 NIVEA carries out its market research with consumers in a number of different ways. These include:• Using focus groups to listen to consumers directly• Gathering data from consumers through a variety of different research techniques • Product testing with consumers in different markets.

Price:Lots of factors affect the end price of a product, for example, the costs of production or the business need to maximize profits or sales. A product’s price also needs to provide value for money in the market and attract consumers to buy.There are several pricing strategies that a business can use:• Cost based pricing – this can either simply cover costs or include an element of profit. It focuses on the product and does not take account of consumers.

• Penetration price – an initial low price to ensure that there is a high volume of purchases and market share is quickly won. This strategy encourages consumers to develop a habit of buying.

• Price skimming – an initial high price for a unique product encouraging those who want to be ‘first to buy’ to pay a premium price. This strategy helps a business to gain maximum revenue before a competitor’s product reaches the market.

Place:

• How the product arrives at the point of sale. This means a business must think about what distribution strategies it will use.

• Where a product is sold. This includes retail outlets like supermarkets or high street shops. It also includes other ways in which businesses make products directly available to their target market, for example, through direct mail or the Internet.

Promotion:

Events or trade fairs help to launch a product to a wide audience.

Events may be business to consumer (B2C) whereas trade fairs are business to business (B2B).

 Direct mail can reach a large number of people but is not easy to target specific consumers cost- effectively.

Public relations includes the different ways a business can communicate with its stakeholders, through, for example, newspaper press releases.

Branding – a strong and consistent brand identity differentiates the product and helps consumers to understand and trust the product. This aims to keep consumers buying the product long-term.

11.3. Explain why the balance of the marketing mix is as important as any single element.

You can have the best (product) in the world but it know one knows about (promotion) it or it has not value to them, then you will have poor sales.

If you have a physical location for you business (place) it needs to be in a easily accessible; high traffic area.

Its why so many business are located around Wal-Mart's and of course price is everything. charge too much and sales will suffer because to it and charge too little and your profits will suffer. you have to find the right price equilibrium.

11.4. Analyze the marketing mix for NIVEA VISAGE Young. What are its strongest points? Explain why you think this is so.

NIVEA VISAGE Young is a skincare range in the UK market designed to enhance the skin and beauty of the teenage consumer rather than being medicated to treat skin problems.

As such, it has created a clear position in the market. This shows that NIVEA understands its consumers and has produced this differentiated product range in order to meet their needs.

To bring the range to market, the business has put together a marketing mix. This mix balances the four elements of product, price, place and promotion.

The mix uses traditional methods of place, such as distribution through the high street, alongside more modern methods of promotion, such as through social networking sites.

It makes sure that the message of NIVEA VISAGE Young reaches the right people in the right way.