ASSIGNME NTSUBJECT : MARKETING

SUBMITTED BY SUBMITTED TO VEENA MR.SURAJ 2ND SEMESTER RESEARCH SCHOLAR PC MBA

DMS,PALAYAD

DMS,PALAYAD

1.

WRITE SHORT NOTES ON:Marketing mix variables Consumer buying roles Cognitive dissonance Marketing environment Variety seeking buying behavior Marketing myopia Strategic marketing planning Integrated marketing Marketing ethics

Industrial market

MARKETING MIX VARIABLESMarketing mix is probably the most famous marketing term.Its elements are the most basic, tactical components of a marketing plan.Also known as the 4 Ps.The marketing mix variables are Product Price Place Promotion PRODUCT This is the physical product or service offered to the consumer. Product decisions include aspects such as function, appearance, packing, service, warranty etc...

PRICE Pricing decisions should take into account the profit margins and the probable pricing response of the competitors. It not only includes the list price, but also discounts financing and other options such as leasing.

PLACE Place decisions are those associated with channels of distribution that serve as a means for taking the products to the target consumers. PROMOTION This is all about communicating and selling the products to the targeted consumers. A break even analysis should be performed to make the promotion cost lesser in proportion to the product price. Promotion decision involves advertising, public relations, media types etc

COGNITIVE DISSONANCEThis theory proposes that a consumer may use a particular product because he or she believes the advertising for that product, which claims that the product is the most effective of its kind in the job that it does. The consumer may then see a competitor's advertisement that seems to prove conclusively that this competitive product is better. This creates dissonance. The consumer must now relieve the uncomfortable feeling that the dissonance brings about and will often do so by switching products. Even though advertisers want to create dissonance for nonusers of their

product, they do not want to create it for those who do use their product. Cognitive dissonance most often occurs after the purchase of an expensive item such as an automobile. A consumer who is experiencing cognitive dissonance after his or her purchase may attempt to return the product or may seek positive information about it to justify the choice.

MARKETING ENVIORNMENTThe marketing environment is a marketing term and refers to all of the forces outside of marketing that affect marketing managements ability to build and maintain successful relationships with target customers. The market environment consists of 3 main perspectives known as

Macro environment Micro environment Internal environment.

The microenvironment refers to the forces that are close to the company and affect its ability to serve its customers. It includes the company itself, its suppliers, marketing intermediaries, customer markets, competitors, and publics. The macro environment refers to all forces that are part of the larger society and affect the microenvironment. It includes concepts such as demography, economy, natural forces, technology, politics, and culture. All factors that are internal to the organization are known as the 'internal environment'. They are generally audited by applying the 'Five Ms' which are Men, Money, Machinery, Materials and Markets. The internal environment is as important for managing change as the external. As marketers we call the process of managing internal change 'internal marketing

VARIETY SEEKING BUYING BEHAVIORConsumer buying behavior can be defined as the decision processes and acts of final household consumers associated with evaluating, buying, consuming, and discarding products for personal consumption. There are numerous forms of buying behaviors exhibited by consumers and variety seeking buying behavior is one of them. Here consumers have a number of brands to select. Their involvement ill be less. Unit cost will also be less. Consumers show brand switching behavior and go on changing from one brand to another. They like the experience of variety satisfaction.

So, variety seeking buying behavior is where the individual may likes shop to shop around for and experiment with different products. So an individual around different breakfast cereals because he/she wants variety in the mornings!

MARKETING MYOPIAMyopia literally means short-sightedness. Marketing myopia is the inefficiency of the top management to broadly define its business and meet customer needs resulting to the decline of the product. It is an interesting as well as very important concept introduced by US marketing academicianTedLevitt for marketing management. According to him, most of the organizations are not able to reach their potential and pave the way for their fall because of their myopic approach, which is short sighted and self centered. They only focus on their firm or organization and its

items/products in terms of their so called aim of fulfilling customers needs and wants. Coco cola is a good example of which marketing myopia is absent and Kodak is a good example in which marketing myopia was present.

STRATEGIC MARKETING PLANNINGStrategic planning is concerned about the overall direction of the business. It is concerned with marketing, of course. But it also involves and decision-making about production

operations, finance, human resource management and other business issues. The objective of a strategic plan is to set the direction of a business and create its shape so that the products and services it provides meet the overall business objectives. Marketing has a key role to play in strategic planning, because it is the job of marketing

management to understand and manage the links between the business and the environment. In many small businesses there is only one geographical market and a limited number of products. However, consider the challenge faced by marketing management in a multinational business, with hundreds of business units located around the globe, producing a wide range of products. How can such management keep control of marketing decision-making in such a complex situation? This calls for well-organized marketing planning.

INTEGRATED MARKETINGWhen all the companys departments work together to serve the customers interests, the result is integrated marketing. Integrated marketing takes on two levels: First, the various marketing functions-sales force, advertising, product management, marketing research, and so on must work together.

Second must be well coordinated with other company departments. The company is doing proper marketing only when all employees appreciate their impact on customer satisfaction. To foster teamwork among all departments, the company carries out internal marketing as well as external marketing. External marketing is marketing directed at people outside the company. Internal marketing is the task of successfully hiring, training, and motivating employees who want to serve the customers well. In fact internal marketing must precede external marketing. It makes no sense to promise excellent service before the companys staff is ready to provide excellent service.

MARKETING ETHICSEthics has been termed the study and philosophy of human conduct, with an emphasis on the determination of right and wrong. For marketers, ethics in the workplace refers to rules (standards,

principles) governing the conduct of organizational members and the consequences of marketing decisions .Therefore, ethical marketing from a normative perspective approach is defined as practices that emphasize transparent, trustworthy, and responsible personal and organizational marketing policies and actions that exhibit integrity as well as fairness to consumers and other stakeholders. Ethics are a collection of principles of right conduct that shape the decisions people or organizations make. Practicing ethics in marketing means deliberately applying standards of fairness, or moral rights and wrongs, to marketing decision making, behavior, and practice in the organization.

INDUSTRIAL MARKETMarkets can be analyzed via the product itself, or end-consumer, or both. The most common

distinction is between consumer and industrial markets. Industrial markets involve the sale of goods between businesses. These are goods that are not aimed directly at consumers. Industrial markets include Selling finished goods Examples include office furniture, computer systems Selling raw materials or components Examples include steel, coal, gas, timber Selling services to businesses Examples include waste disposal, security, accounting & legal services Industrial markets often require a slightly different marketing strategy and mix. Industrial business may have to focus on a relatively small number of potential buyers whereas consumer marketing tends to be aimed at the mass market (in some cases, many millions of potential

customers).Therefore industrial marketing tends to be focused.

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APPLICATION QUESTIONS Discuss the variables of the marketing mix as they might relate to each of the following Automobile company Mens clothing store Campus book store

Choose an industry. Search for recent business news for examples of influences of competitors, economy, politics, law, technology, society and culture on marketing decision making.

The consumer buying process consists of 5 stages and the process does not

necessarily Interview a

conclude person

on about

purchase. the last

purchase he made. Report the stages used and those skipped if any and present the findings

MARKETING VARIABLES OF: Maruti Products Maruti 800 Alto, Zen, Wagon-R, Swift, A-star D ZiRE Vitara, Gypsy Omni, Versa

PriceThe price of Maruti car is between 210000 to 1500000.Maruti 800 is the lowest price car of this company. Alto Omini and Wagon-R are also low price cars of the company but Zen and Esteem are mid priced cars. The price of the car is decided according to its product variety, quality etc

Place 6000 new car sales outlet covering 393 cities 265 Maruti true value outlets spread across 166 cities 2628 Maruti Authorized Service Stations covering 1220 cities Tie up with adani group for exporting 200000 units through mnudra port in Gujarat. Promotion Advertisement Information advertising BTL TV shows Place advertising Sales promotions Product warrantees Premiums Trade shows Reid and Taylor

Products

Reid and Taylor products include TShirts, Shirts, Casual Apparels along with its after sales services Price Prices of T-Shirts HOSLEY NEW ERA-Rs 1000 to 8000 FERDOS NEW ERA-Rs 200-800 Price of the T-Shirts are fixed differently for different geographical location considering the difference in usage pattern as well as varying advertisement costs. Place The company uses various factors such as sales, communication and contractual considerations. It has a long chain of wholesalers and retailers to reach its customers. Promotion Salesman Newspapers Magazines Radios Bill boards

Television National campus bookstore Product National Bookstore offers a wide range of products from the retail sale and distribution of books to the sale of various school supplies. National Bookstores products, specifically the school supplies, are mostly aimed for the students and office workers consumption and needs. However, the customers of National Bookstore are not limited to just students and office workers. The company also caters to kids through the sale of toys, coloring books, crayons and et cetera. Adults are also customers of National Bookstore since they avail of the various selections of books that National has to offer. Students and other consumers as well know that National Bookstore offers products of good quality and of affordable prices that are of great benefit to the consumers. National Bookstore also offers branded school supplies and their own product line named Best Buy which is more affordable than other.

Price

Affordable pricing is one objective that National Bookstore has every product is of the best quality at the best price. National Bookstore wants that students be able to afford to buy school supplies with their own allowance that is why National Bookstores products are priced at affordable levels.

Place

It is located in walking distance of universities and therefore expects to have a large group of potential buyers. Promotion The books will be on sale for the opening week of business, and will assume normal pricing from there onwards. On select weeks discounts are offered to students and promotional deals to the general public. THE COKE INDUSTRY Coco-Cola Competition Cokes major competitor is Pepsi and there is no hesitation to say this. Price is the major factor

affected by the competitors. When a difference occurs in the exact price it effects the consumption of the drink. When the price is more, consumers switch on to Pepsi and when the price is low, they think there is something wrong.

Economy Coca-Cola operates in more than 200 countries. Because of the local nature of the business, they are in the unique position to contribute to the economic vitality of even the most remote communities around the world. The total indirect economic impacts of the CocaCola system are significantly greater. The CocaCola system has more than 900 plants around the world. Their ingredients and raw materials are largely sourced locally and the 92,400 employees represent thousands of communities and many cultures. In addition, the companys bottling partners employ hundreds of thousands of people around the world and are committed to supporting community investment programs. They contribute to the economic success of each community by employing local people; paying taxes to governments; paying suppliers for goods, services and capital equipment; and supporting

community investment programs. Past independent studies on the economic impact of their business in Asia, Africa and Eastern Europe have consistently shown that for every job in the Coca-Cola system, an average of 10 more jobs are supported in local communities. Politics The battle for dominance in the cola market continues with Pepsi forever in second place to Coke but definitely holding its own. Competition between the two companies has been fierce in the US market and throughout the world. For political reasons, Pepsi has held pole position in a few countries, e.g. Saudi Arabia (because of Coke's marketing in Israel), francophone Canada, and the old Soviet Union where it negotiated a monopoly. Both companies use a raft of modern marketing and market research techniques to hold their own. Law The coke company was asked for compensation as a result of environmental harm and violation of environmental laws, by the company. The damage was caused because of their bottling plant and it affected the people of a village called Plachimada of Palakkad district. The company was closed following sustained protests and stand taken by the government. TECHNOLOGY

Coke started using PET plant bottles as a result of adapting the changing technology. It has also been using sugar cane today, also exploring other raw materials. The company has been looking out for advance technologies to extract sugar from plant wastes for future generations of Plant Bottle packaging. Interviewing a person regarding the purchase of an eatable When a person who has purchased an eatable of his choice was interviewed, it was obvious that he has undergone through the first process of the buying behavior, that is, awareness of a problem. Here the problem recognized was hunger and the person looked out for ways that would help him to solve the problem. Next step was to search ways or information that would lead him to solve his problem. The search was just internal. He did not depend on any external source as the need was for food which needs to be fulfilled immediately. As he depended on very few information there was no problem of evaluating each available alternative as there was no too many alternatives to evaluate. So the third step of evaluating alternatives was not done and the person went for selecting or purchasing the alternative.

Now there is no chance for dissatisfaction here as there were no much options available and so the person is satisfied with what he consumed. Findings From the interview, it was found out that at least some of the purchase decisions are not made undergoing through all the mentioned steps of the buying process. When it comes to buying an expensive or luxury item, all these steps may be considered. But when it comes to the case of consumer goods, only a few steps are undergone as they are not very expensive.

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NET INSIGHTS

Services The mentioned site provides a wide variety ofservices such as prepaid cards, sms service, hosting services, gifts and so on. It helps in experiencing quick services and in a much expected way by the customers. Apart from this, the products offered also ranges from a single book to huge decorative furnishers. Motivation of customers Valence is related to the attractiveness of a particular product and these retail sites are excellent in displaying the products with a high degree of attractiveness visual appeal. The products are displayed in a 3-d format with vibrant colors and designs which is surely an important motivating factor. Individuality influences many of the purchasing decisions. Individual preferences that are shaped by unique memories, experiences and perceptions and also the need

to be individual and to stand out from the crowd motivates the customers to purchase online Some people are still anxious about online security, but most people have overcome their anxieties in order to make the most of the offers that are to be had. This is one of the reasons why people are deciding to buy expensive goods online. People are clearly choosing to buy expensive items over the Internet because they are less expensive online than they would be on the high street; you can buy expensive goods directly from large online stores or from individual sellers and save yourself a fortune. Consumer buying process While making purchase decisions, consumers are often unable to evaluate all available alternatives in great depth and, thus, tend to use two-stage processes to reach their decisions. At the first stage, consumers typically screen a large set of available products and identify a subset of the most promising alternatives. Subsequently, they evaluate the latter in more depth, perform relative comparisons across products on important attributes, and make a purchase decision. Given the different tasks to be performed in such a two-stage process, interactive tools that provide support to consumers in the following respects are particularly valuable: (1) the initial screening

of available products to determine which ones are worth considering further, and (2) the indepth comparison of selected products before making the actual purchase decision. This paper examines the effects of two decision aids, each designed to assist consumers in performing one of the above tasks, on purchase decision making in an online store. Competitive environment In an ever evolving, intensely competitive online sales environment, online retailers are constantly in search of ways to increase sales, reduce technical costs, and acquire new customers. The result is market wide demand for enhanced ecommerce technology, effective paving the way for a new breed of hosted e- commerce solution