Assignment on Marketing Management

ASSIGNMENT ON MARKETING MANAGEMENT

ASSIGNMENT ON MARKETING MANAGEMENT BY RAHUL GUPTA Q.1 Write a short note on product life cycle? Answer 

Introduction:

Product life cycle management is the succession of strategies used by management as a product goes through its product life cycle. The conditions in which a product is sold changes over time and must be managed as it moves through its succession of stages.

Product life cycle: A product's life cycle (PLC) can be divided into several stages characterized by the revenue generated by the product. If a curve is drawn showing product revenue over time, it may take one of many different shapes, an example of which is shown below:

RAHUL GUPTA, MBAHCS (2 ND SEM), SUBJECT COCE- MB0030, SET-2

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ASSIGNMENT ON MARKETING MANAGEMENT Product Life Cycle Curve

The life cycle concept may apply to a brand or to a category of product. Its duration may be as short as a few months for a fad item or a century or more for product categories such as the gasoline-powered automobile.

Product development is the incubation stage of the product life cycle. There are no sales and the firm prepares to introduce the product. As the product progresses through its life cycle, cycle, changes in the marketing mix usually are required in order to adjust to the evolving challenges and opportunities.

Introduction Stage: When the product is introduced, sales will be low until customers become aware of the product and its benefits. Some firms may announce their product before it is introduced, but such such announc announceme ements nts also also alert alert compet competito itors rs and remove remove the element element of surpri surprise. se. Advertising costs typically are high during this stage in order to rapidly increase customer awareness of the product and to target the early adopters. During the introductory stage the firm is likely to incur additional costs associated with the initial distribution of the product. These higher costs coupled with a low sales volume usually make the introducti introduction on stage a period of negative profits. During the introduction stage, the primary goal is to establish a market and build primary demand for the product class. The following are some of the marketing mix implications of the introduction stage: RAHUL GUPTA, MBAHCS (2 ND SEM), SUBJECT COCE- MB0030, SET-2

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ASSIGNMENT ON MARKETING MANAGEMENT • •

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Product - one or few products, relatively undifferentiated Price - Generally high, assuming a skim pricing strategy for a high profit margin as the early adopters buy the product and the firm seeks to recoup development costs quickly. In some cases a penetration pricing strategy is used and introductory prices are set low to gain market share rapidly. Distri ribu buti tion on is sele select ctiv ivee and scat scatte tere red d as the the firm firm comm commen ences ces Distribution - Dist implementation of the distribution plan. Promotion - Promotion is aimed at building brand awareness. Samples or trial incentives may be directed toward early adopters. The introductory promotion also is intended to convince potential resellers to carry the product.

Growth Stage: The growth stage is a period of rapid revenue growth. Sales increase as more customers become become aware of the product and its benefits benefits and additional additional market segments segments are targeted. targeted. Once the product has been proven a success and customers begin asking for it, sales will increase further as more retailers become interested in carrying it. The marketing team may expand the distribution at this point. When competitors enter the market, often during the later part of the growth stage, there may be price competition and/or increased promotional costs in order to convince consumers that the firm's product is better than that of the competition. During the growth stage, the goal is to gain consumer preference and increase sales. The marketing mix may be modified as follows:

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Product - New product features and packaging options; improvement of product quality. Price - Maintained at a high level if demand is high, or reduced to capture additional customers. Distribution - Distribution becomes more intensive. Trade discounts are minimal if resellers show a strong interest in the product. Promotion - Increased advertising to build brand preference.

Maturity Stage: The maturity stage is the most profitable. While sales continue to increase into this stag stage, e, they they do so at a slowe slowerr pace pace.. Beca Becaus usee brand brand awar awarene eness ss is stro strong, ng, adver adverti tisi sing ng expenditures will be reduced. Competition may result in decreased market share and/or prices. The competing products may be very similar at this point, increasing the difficulty of differentiating the product. The firm places effort into encouraging competitors' customers to switch, increasing usage per customer, and converting non-users into customers. Sales promotions may be offered to encourage retailers to give the product more shelf space over competing products. RAHUL GUPTA, MBAHCS (2 ND SEM), SUBJECT COCE- MB0030, SET-2

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ASSIGNMENT ON MARKETING MANAGEMENT During the maturity stage, the primary goal is to maintain market share and extend the product life cycle. Marketing mix decisions may include: •

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Product - Modifications are made and features are added in order to differentiate the product from competing products that may have been introduced. Price - Possible price reductions in response to competition while avoiding a price war. Distribution - New distribution channels and incentives to resellers in order to avoid losing shelf space. Promotion - Emphasis on differentiation and building of brand loyalty. Incentives to get competitors' customers to switch.

Decline Stage: Eventually sales begin to decline as the market becomes saturated, the product becomes technologically obsolete, or customer tastes change. If the product has developed brand loyalty, the profitability may be maintained longer. Unit costs may increase with the declining production volumes and eventually no more profit can be made. During the decline phase, the firm generally has three options: •

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Maintain the product in hopes that competitors will exit. Reduce costs and find new uses for the product. Harvest it, reducing marketing support and coasting along until no more profit can be made. Discontinue the product when no more profit can be made or there is a successor product

The marketing mix may be modified as follows: •

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Product - The number of products in the product line may be reduced. Rejuvenate surviving products to make them look new again. Price - Prices may be lowered to liquidate inventory of discontinued products. Prices may be maintained for continued products serving a niche market. Distribution - Distribution becomes more selective. Channels that no longer are profitable are phased out. Promotion - Expenditures are lower and aimed at reinforcing the brand image for continued products.


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Limitations of the Product Life Cycle Concept: The term "life cycle" implies a well-defined life cycle as observed in living organisms, but products do not have such a predictable life and the specific life cycle curves followed by different products vary substantially. Consequently, the life cycle concept is not wellsuited for the forecasting of product sales. Furthermore, critics have argued that the product life cycle may become self-fulfilling. For example, if sales peak and then decline, managers may conclude that the product is in the decline phase and therefore cut the advertising budget, thus precipitating a further decline. Nonetheless, the product life cycle concept helps marketing managers to plan alternate marketing strategies to address the challenges that their products are likely to face. It also is useful for monitoring sales results over time and comparing them to those of products having a similar life cycle.

Q.2 Explain various categories of brand sponsorship with example? Answer 

Introduction:

American Marketing Association defines the brand as “A name, term, design, symbol or any other feature that identifies one seller’s good or service as distinct from those of other RAHUL GUPTA, MBAHCS (2 ND SEM), SUBJECT COCE- MB0030, SET-2

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ASSIGNMENT ON MARKETING MANAGEMENT sellers. The legal term for brand is trademark. A brand may identify one item, a family of terms, or all items of that seller. If used for the firm as a whole, the preferred term is trade name. 

Brand Sponsorship: Brand managers have four options of sponsoring the brand.

A. Manufactu Manufacturer rer BrandBrandThe brand owned by manufacturer and promoted either directly or indirectly. This type of strategy has been followed for many years. Pillsbury Atta is a manufacturer brand. B.

Private Brand-

These brands are also called store brands. These brands bear the store name or store selected vendor name. Basic ingredients of private labels are: I.

It must be a unit package : It is difficult to assign a private label character to say, rice sold loose from a 100kg bag. Even though it may enhance consumer loyalty for whatever reason, it does not qualify as a private label product.

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Relabeling : The unit pack must bear only the brand name of the particular store or any other party the store may choose for its private label programme.

Private labels will enhance the category profitability; increase the negotiation power of the retailer and better value creates better consumer loyalty. All retailers cannot go for the private labeling. Private labels can be introduced if and only if: a) The consum consumer er is not not getting getting the the tangibl tangiblee value. value. b) The retailer retailer is not not making making enough returns returns from from the sale sale of the branded branded goods. goods.

Emerging issues in private branding: a. The private private label label strategy strategy is is effective effective,, profitable profitable and and realisti realistic. c. b. The retailer retailer must must understand understand the the price, quality quality and and willingnes willingnesss to pay. c. The retailers must have a sufficiently large base of loyal customers in the store

before introducing the private label. RAHUL GUPTA, MBAHCS (2 ND SEM), SUBJECT COCE- MB0030, SET-2

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ASSIGNMENT ON MARKETING MANAGEMENT d. The The focu focuss must must be on the cons consum umer er needs needs and and not not any any priv privat atee agen agenda da of the the retailers. e. There must must be a stringent stringent syst system em for the the private private label producti production. on. Quality Quality control control is a must since there is no one on e else to blame. f. Privat Privatee labels labels must work work to fill fill the gaps gaps in the catego category ry and not targ target et the brand brand leader. g. Since Since manufact manufacture urers rs may take a privat privatee label label initiat initiative ive o the retail retailer er seriousl seriously y and avoid value gaps in the categories as an impediment to growing private labels.

C. Brand Brand Licens Licensing ing-It is the legal authorization by the trade mark brand owner to allow another company to use its brand for a free. For example- Hugo Boss, Tommy Hilfiger, Lovable, Lacoste and Nike are some of the textile brands those licensed their brands in the Indian market. The major benefits of brand licensing are low-cost, free publicity and revenue from royalty fees. Brand licens licensing ing also also suffer sufferss from from seriou seriouss limita limitatio tions ns like like lack lack of manufa manufactu cturin ring g contro control, l, and failure of licensing arrangements.

D. Co-Bra Co-Brandi ndingngAccording to Kotler, co-branding is the practice of using the established brand names of two different companies on the same product. For example- ICICI and HPCL came together to sell ICICI-HPCL petro cards to the customer. Here card is the co-branding between the two companies. Co-branding helps ICICI to utilize their financial resources well. It adds another banking facility to the bank while HPCL can lock the customer from buying the petroleum petroleum products from competitors. competitors. HPCL also gets benefit benefit of financial financial power which it doesn’t have. Both companies promote these products. Hence, they can leverage brand image and can reduce the cost. All companies will not get benefit from co-branding. Sometimes company may lose the brand image f the product fails.


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Explain n th the e pro produc ductt mix pri pricin cing g st stra rateg tegie ies s Q.3 Explai with example? Answer

Pricing Strategy: One of the four major elements of the marketing mix is price. Pricing is an important strategic issue because it is related to product positioning. Furthermore, pricing affects other marketing mix elements such as product features, channel decisions, and promotion. While there is no single recipe to determine pricing, the following is a general sequence of steps that might be followed for developing the pricing of a new product: produ ct: 1. Develop marketing strategy - perform marketing analysis, segmentation, targeting, and positioning. 2. Make marketing mix decisions - define the product, distribution, and promotional tactics. 3. Estimate the demand curve - understand how quantity demanded varies v aries with price. 4. Calculate cost - include fixed and variable costs associated with the product. 5. Understa evaluat uatee likel likely y comp compet etit itor or acti actions ons,, Understand nd environ environment mental al factors factors - eval understand legal constraints, etc. 6. Set pricing objectives - for example, profit profit maximizati maximization, on, revenue revenue maximizatio maximization, n, or price stabilization (status quo). 7. Determine pricing - using information collected in the above steps, select a pricing method, develop the pricing structure, and define discounts. Thesee step Thes stepss are are inte interr rrel elat ated ed and are are not not nece necess ssar aril ily y perf perfor orme med d in the the above above orde order. r. Nonetheless, the above list serves to present a starting framework.

Marketing Strategy and the Marketing Mix: Before the product is developed, the marketing strategy is formulated, including target market market select selection ion and product product posit position ioning ing.. There There usuall usually y is a tradeo tradeoff ff betwee between n product product quality and price, so price is an important variable in positioning. Because of inherent tradeoffs between marketing mixes elements, pricing will depend on other product, distribution, and promotion decisions.


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Estimate the Demand Curve: Because there is a relationship between price and quantity demanded, it is important to understand the impact of pricing on sales by estimating the demand curve for the product. For existing products, experiments can be performed at prices above and below the current price in order to determine the pric the pricee elast elasticit icity y of demand demand.. Inelastic demand indicates that price increases might be feasible.

Calculate Costs: If the firm has decided to launch the product, there likely is at least a basic understanding of the costs involved; otherwise, there might be no profit to be made. The unit cost of the product sets the lower limit of what the firm might charge, and determines the profit margin at higher prices. The total unit cost of a producing a product is composed of the variable cost of producing each additional unit and fixed costs that are incurred regardless of the quantity produced. The pricing policy should consider both types of costs.

Environmental Factors: Pricing must take into account the competitive and legal environment in which the company operates. From a competitive standpoint, the firm must consider the implications of its pricing on the pricing decisions of competitors. For example, setting the price too low may risk a price war that may not be in the best interest of either side. Setting the price too high may attract a large number of competitors who want to share in the profits. From a legal standpoint, a firm is not free to price its products at any level it chooses. For example, there may be price controls that prohibit pricing a product too high. Pricing it too low may be considered predatory pricing or "dumping" in the case of international trade. Offe Offeri ring ng a diff differ erent ent pric pricee for for diff differ erent ent cons consum umer erss may may viol violat atee laws laws agai agains nstt pric pricee discrimination. Finally, collusion with competitors to fix prices at an agreed level is illegal in many countries.


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Pricing Objectives: The firm's pricing objectives objectives must be identified identified in order to determine determine the optimal optimal pricing. Common objectives include the following: •

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seeks to maximi maximize ze curren currentt profit profit,, taking taking into into Current profit maximization maximization - seeks accou account nt reve revenu nuee and and cost costs. s. Curr Curren entt prof profit it maxi maximi miza zati tion on may may not be the the best best objective if it results in lower long-term profits. Current revenue maximization maximization - seeks to maximize current revenue with no regard to profit margins. The underlying objective often is to maximize long-term profits by increasing market share and lowering costs. Maximize quantity - seeks to maximize the number of units sold or the number of customers served in order to decrease long-term costs as predicted by the experience curve.. curve Maximize profit margin - attempts to maximize the unit profit margin, recognizing that quantities will be low. Quality leadership leadership - use price to signal high quality in an attempt to position the product as the quality leader. Partial cost recovery - an organization that has other revenue sources may seek only partial cost recovery. Survival - in situations such as market decline and overcapacity, the goal may be to select a price that will cover costs and permit the firm to remain in the market. In this case, survival may take a priority over profits, so this objective is considered temporary. Status quo - the firm may seek price stabilization in order to avoid price wars and maintain a moderate but stable level of profit.

For new products, the pricing objective often is either to maximize profit margin or to maximize maximize quantity quantity (market share). To meet these objectives, objectives, skim pricing pricing and penetration penetration pricing strategies often are employed. Joel Dean discussed these pricing policies in his classic HBR article entitled, Pricing Policies for New Products. 

Skim pricing:

Attempts to "skim the cream" off the top of the market by setting a high price and selling to those customers who are less price sensitive. Skimming is most appropriate when:


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ASSIGNMENT ON MARKETING MANAGEMENT •

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Demand is expected to be relatively inelastic; that is, the customers are not highly price sensitive. Large cost savings are not expected at high volumes, or it is difficult to predict the cost savings that would be achieved at high volume. The company does not have the resources to finance the large capital expenditures necessary for high volume production with initially low profit margins.

Penetration pricing:

It pursues the objective of quantity maximization by means of a low price. It is most appropriate when: •

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Demand is expected to be highly elastic; that is, customers are price sensitive and the quantity demanded will increase significantly as price declines. Large decreases in cost are expected as cumulative volume increases. The product is of the nature of something that can gain mass appeal fairly quickly. There is a threat of impending competition.

As the product lifecycle progresses, there likely will be changes in the demand curve and costs. As such, the pricing policy should be reevaluated over time. The pricing objective depends on many factors including production cost, existence of economies of scale, barriers to entry, product differentiation, rate of product diffusion, the firm's resources, and the product's anticipated price anticipated price elasticity of demand. demand.

Pricing Methods: To set the specific price level that achieves their pricing objectives, managers may make use of several pricing methods. These methods include: • • •

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Cost-plus pricing - set the price at the production cost plus a certain profit margin. Target return pricing - set the price to achieve a target return-on-investment. Value-based pricing - base the price on the effective value to the customer relative to alternative products. Psychological pricing - base the price on factors such as signals of product quality, popular price points, and what the consumer perceives to be fair.

In addition to setting the price level, managers have the opportunity to design innovative pricing pricing models that better meet the needs of both the firm and its customers. customers. For example, software traditionally was purchased as a product in which customers made a one-time payment and then owned a perpetual license to the software. Many software suppliers have changed their pricing to a subscription model in which the customer subscribes for a set RAHUL GUPTA, MBAHCS (2 ND SEM), SUBJECT COCE- MB0030, SET-2

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ASSIGNMENT ON MARKETING MANAGEMENT period of time, such as one year. Afterwards, the subscription must be renewed or the software no longer will function. This model offers stability to both the supplier and the customer since it reduces the large swings in software investment cycles.

Price Discounts: The normally quoted price to end users is known as the list price. This price usually is discounted for distribution channel members and some end users. There are several types of discounts, as outlined below. • •

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Quantity discount - offered to customers who purchase in large quantities. discoun ountt that that incr increa ease sess as the the cumu cumula lati tive ve Cumulative Cumulative quantity discount - a disc quantity increases. Cumulative discounts may be offered to resellers who purchase large quantities over time but who do not wish to place large individual orders. Seasonal discount - based on the time that the purchase is made and designed to reduce seasonal variation in sales. For example, the travel industry offers much lower off-season rates. Such discounts do not have to be based on time of the year; they also can be based on day of the week or time of the day, such as pricing offered by long distance and wireless service providers. Cash discount - extended to customers who pay their bill before a specified date. Trade discount - a functional discount offered to channel members for performing their roles. For example, a trade discount may be offered to a small retailer who may not purchase in quantity but nonetheless performs the important retail function. Promotional discount - a short-term discounted price offered to stimulate sales.

Product Pricing Strategies: The most challenging stage of product is introductory stage. In introductory stage of new product companies face the challenge of setting the prices for the first time. Companies have only one chance to get new product price right. They can choose among the two strategies i.e. market skimming pricing and market penetration pricing.

Market Skimming Pricing: Compan Companies ies intere intereste sted d in profit profitabl ablee sale sale set initia initiall lly y high high price price for a product product to skim skim maximum revenue from the segments which is willing to pay high price and then slowly move to low price.

Market Penetration Pricing: RAHUL GUPTA, MBAHCS (2 ND SEM), SUBJECT COCE- MB0030, SET-2

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ASSIGNMENT ON MARKETING MANAGEMENT Companies interested in large market share set low price for a product in order to attract large number of customer.

Product Mix Pricing Strategy: The strategies of setting the price for a product when the product is part of o f product mix.

Product Line Pricing: Same product with different features the price is kept on the bases of the cost difference between the products in product line and customer evaluation of features and competitor prices. For example Sony offering different television with different features at different prices.

Optional Product Pricing: It’s the pricing of the main product with the accessories or optional product for example car with power window CD changer and car without power window and CD changer.

Captive Product Pricing: Pricing of the product which must be used with the main product for example films must be use with VCR, CD must be use with CD player etc.

Product Bundle Pricing: Making the bundle of different product and price the bundle at a reduce price. It is basically for selling the slow moving items.


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Q.4 What are various logistics functions? Describe in brief? Answer  Introduction: A logistic function function or logistic curve is the most common sigmoid curve. curve. It models the "S-shaped" curve (abbreviated S-curve) of growth of some set P, where P might be thought of as popul populat atio ion. n. Th Thee init initial ial stage stage of growt growth h is appr approx oxim imat atel ely y expon exponen enti tial al;; then then,, as saturation begins, the growth slows, and at maturity, growth stops. A simple logistic function may be defined by the formula

Where the variable P might be considered considered to denote a population population and the variable variable t might be thought of as time. If we now let t range over the real number numberss from −∞ to +∞ then we obtain the S-curve shown. In practice, due to the nature of the exponential function e−t, it is sufficient to compute t over a small range of real numbers such as [−6, +6].


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Standard logistic sigmoid function:

The logistic function finds applications in a range of fields, including artificial neural networks,, biology networks biology,, biomathematics biomathematics,, demography demography,, economics economics,, chemistry chemistry,, mathematical psychology,, probability psychology probability,, sociology and statistics statistics.. 

Logistic differential equation:

The logistic function is the solution of the simple first-order non-linear differential equation

Where P is a variable variable with respect to time t and with boundary with boundary condition P (0) = 1/2. This equation is the continuous version of the logistic map. map. One may readily find the (symbolic) solution to be

Choosin Choosing g the constan constantt of integr integrati ation on eke = 1 gives the other well-known form of the definition of the logistic curve

The logistic curve shows early exponential growth for negative negative t, which which slows slows to linear linear growth of slope 1/4 near t = 0, then approaches y = 1 with an exponentially decaying gap. The logistic function is the inverse of the natural logic function and so can be used to convert the logarithm of odds of odds into a probability a probability;; the conversion from the log-likelihood ratio of two alternatives also takes the form of a logistic curve. The logistic sigmoid function is related to the hyperbolic tangent, tangent, A.p. by


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In ecology: modeling population growth: A typical application of the logistic equation is a common model of population population growth, growth, origin originall ally y due to Pierre-François Verhulst in 1838, 1838, wher wheree the the rate rate of repr reprod oduct uctio ion n is proportional to: • •

The existing population The amount of available resource.

All else being being equal. equal. Thus Thus the second second term term models models the compet competiti ition on for available available resources, resources, which tends to limit the population population growth. Letting P represent represent population population size (N is often used in ecology instead) and t represent time, this model is formalized by the differential equation: equation:

Where the constant r defines the growth rate and K is the carrying capacity. capacity. Interpreting the equation shown above: the early, unimpeded growth rate is modeled by the first term +rP. The value of the rate r represents represents the proportional proportional increase increase of the population population P in one unit of time. time. Later, Later, as the population population grows, the second term, term, which 2 multiplied out is −rP /K, becomes larger than the first as some members of the population P interfere with each other by competing for some critical resource, such as food or living space. This antagonistic effect is called the bottleneck, and is modeled by the value of the parameter parameter K. The competition competition diminishe diminishess the combined growth rate, until the value of P ceases to grow (this is called maturity of the population). Let us divide both sides of the equation by K [5] to give

Now setting x = P / K gives us the differential equation

For r = 1 we have the particular case with which we started.


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ASSIGNMENT ON MARKETING MANAGEMENT In ecology ecology,, species are are some someti time mess refe referr rred ed to as r-strategist or K-strategist depending upon the selective processes that have shaped their life their life history strategies. The solution to the equation (with P0 being the initial population) is

Where Which is to say that K is the limiting value of P: the highest value that the population can reach given infinite time (or come close to reaching in finite time)? time)? It is importan importantt to stress stress that the carrying carrying capacity capacity is asymptoti asymptoticall cally y reached independently independently of the initial value P (0) > 0, also in case that P (0) > K.

Time-varying Time-varyin g carrying capacity: Since the environmental conditions influence the carrying capacity, as a consequence it can be time-varying: K (t) > 0, leading to the following mathematical model:

A particularly important case is that of carrying capacity that varies periodically with period T:

It can be shown that in such a case, independently from the initial value P (0) > 0, P (t) will tend to a unique periodic solution P*(t), whose period is T. A typical value of T is one year: in such case K (t) reflects periodical variations of weather conditions.

In statistics: Logistic functions are used in several roles in statistics statistics.. Firstly, they are the cumulative distribution function of the logis logistic tic fami family ly of distr distributi ibutions ons.. Secondly they are used in logistic regression to model how the probability p of an event may be affected by one or more explanatory variables: variables: an example would be to have the model RAHUL GUPTA, MBAHCS (2 ND SEM), SUBJECT COCE- MB0030, SET-2

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Where x is the explanatory variable and a nd a and b are model parameters to be fitted. An important application of the logistic function is in the Rasch model, model, used in item response theory. theory. In particular, the Rasch model forms a basis for maximum likelihood estimation of the locations of objects or persons on a continuum continuum,, based on collections of categorical data, for example the abilities of persons on a continuum based on responses that have been categorized as correct and incorrect.

In medicine: modeling of growth of tumors: Another application of logistic curve is in medicine, where the logistic differential equation is used to model the growth of tumors. This application can be considered an extension of the above mentioned use in the framework of ecology. Denoting with X (t) the size of the tumor at time t, its dynamics are governed by:

Which is of the type?

Where F(X) is the proliferation rate of the tumor.

If chemotherapy is started with a log-kill effect, the equation may be revised to be

Where c (t) is the therapy-induced therapy-induced death rate. In the idealized idealized case of very long therapy, therapy, c (t) can be modeled as a periodic function (of period T) or (in case of continuous infusion therapy) as a constant function, and one has that


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ASSIGNMENT ON MARKETING MANAGEMENT I.e. if the average therapy-induced therapy-induced death rate is greater than the baseline proliferati proliferation on rate then there is the eradication of the disease. Of course, this is an over-simplified model of both the growth and the therapy (e.g. it does not take into account the phenomenon of clonally resistance).

Double logistic function:

The double logistic is a function similar to the logistic function with numerous applications. applications. Its general formula is:

Where d is its centre and s is the steepness factor. Here "sign" represents the sign function. function. 

Importance of a global view of Logistics:

Today’s economy is a global one and enterprises must be prepared to conduct business with customers and suppliers anywhere in the world. Efficient logistics services system plays a major role in competitive pricing and operational efficiency. Cutting-edge technology with global global logist logistics ics knowled knowledge ge can create create a seamle seamless ss networ network k of suppli suppliers ers,, carrie carriers, rs, and regulatory agencies, warehouse facilities and clients. Global logistics effectiveness is a process, a supply pipeline that stretches from your vendor to the customer. Use the service of a logistics-consulting firm to assess your logistics management needs and find a logistics solution. Assess the need for a third party logistics provider.


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Healthcare Logistics:

Distribution of healthcare products is a great challenge for the healthcare logistics system system.. Healthc Healthcare are logist logistics ics has indust industryry-spe specif cific ic needs needs of purchas purchasing ing,, wareho warehousi using, ng, transport logistics and collaboration. Specific healthcare logistics software can help solve probl problems ems.. Health Healthcar caree logist logistics ics softwa software re can help help in bar code technol technology ogy of medica medicall products for faster delivery, reduced medical errors and prevention of fraud and abuse. Using a healthcare logistics software system can cut operation costs and result in lower patie patient nt care care costs. costs. Stream Streamlin lining ing operati operations ons with with suppli suppliers ers through through effect effective ive use of ecommer commerce ce is a result resultant ant from from applyi applying ng health healthcar caree logist logistics ics tools. tools. Effici Efficient ent healthc healthcare are logistics system can also reduce internal labor costs. •

Distribution Logistics:

The Defens Defensee Logisti Logistics cs Agency Agency is an excelle excellent nt exampl examplee of distri distribut bution ion logist logistics ics.. Its missio mission n is to provid providee best best distri distribut bution ion logist logistics ics suppor supportt to Americ America’s a’s Armed Armed Forces Forces.. Distribution logistics, in this case, takes care of everything the service members eat, wear, drive or even shoot. Strategic Distribution Logistics is a logistic job designed to transform the Department of Defense worldwide by integrating stock positioning and transportation. The aim of distribution logistics services is to drive down customer wait time and cost while improving quality and reliability of service. Distribution logistics focuses on forward stocking. •

Logistics Solution / Logistics Services:

A logistics solution can be implemented on the recommendations of a logistics-consulting firm. An efficient logistics solution guarantees fast return on investment. A customized logistics solution brings about decisive impacts on logistical processes to suppliers and customers. Logistics service is a strategic to the success of a firm. Logistics service and solution team needs to focus on eliminating non-productive distance and real–time vehicle fleet tracking. tracking. •

Logistics Software:

Integrated logistics management software will help gain a competitive edge. SAP, a leading logist logistics ics softwa software re provid provider, er, delive delivers rs tools tools and capabil capabiliti ities es that that can help help you yourr logist logistics ics Services Company operate with efficiency, flexibility and speed. Logistics software benefits warehouse logistics management by implementing cross docking. Logistics software offers tracking and tracing tools that allow measurement of key performance indicators (KPIs). RAHUL GUPTA, MBAHCS (2 ND SEM), SUBJECT COCE- MB0030, SET-2

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Reverse Logistics Services:

Revers Reversee logist logistics ics servic services es allow allow manufa manufactu cturer rerss to increa increase se custom customer er satisf satisfact action ion by providing a complete view of their supply chains, including goods in the return loop. Integrating the reverse logistics services into the complete logistics job provides feedback for the design, engineering, assembly and distribution. Reverse logistics involves is all about products that are returned by the customers, either for repair or after-sales service. The questions that need to be asked before applying a reverse logistics management system: - Where is the repair facilities located? - How should you integrate your reverse logistics processes processes into your total after-sales supply chain? - Should you outsource the reverse logistics return loop?

What is IMC? IMC? Desc Descri ribe be the the comm commun unic icat atio ion n deve develo lopm pmen entt Q.5 What process in brief? Answer: 

Introduction:

Integrated Marketing Communications is a term used to describe a holistic approach to marketing communication. It aims to ensure consistency of message and the complementary use use of medi media. a. Th Thee conc concept ept incl includ udes es onli online ne and and offl offlin inee mark market etin ing g chann channel els. s. Onlin Onlinee marketing channels include any e-marketing campaigns or programs, from search engine optimization (SEO), pay-per-click, and affiliate, and email, banner to latest web related channel channelss for webinar webinar,, blog, blog, micromicro-blo bloggi gging, ng, RSS, RSS, podcast podcast,, and Intern Internet et TV. Offlin Offlinee marketing channels are traditional print (newspaper, magazine), mail order, public relations, indust industry ry relati relations ons,, billbo billboard ard,, radio, radio, and televi televisio sion. n. A compan company y develop developss its its integr integrate ated d marketing communication program using all the elements of the marketing mix (product, price, place, and promotion). Integrated marketing communication is integration of all marketing tools, approaches, and resources within a company which maximizes impact on consumer mind and which results into maximum profit at minimum cost. Generally marketing starts from "Marketing " Marketing Mix". Mix". Promotion is one element of Marketing Mix. Promotional activities include Advertising (by using different medium), sales promotion (sales and trades promotion), and personal selling activities activities.. It also includes includes internet internet marketing, marketing, sponsorshi sponsorship p marketing, marketing, direct direct marketing, marketing, database marketing and public relations. And integration of all these promotional tools RAHUL GUPTA, MBAHCS (2 ND SEM), SUBJECT COCE- MB0030, SET-2

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ASSIGNMENT ON MARKETING MANAGEMENT along with other components of marketing mix to gain edge over competitor is called Integrated Marketing Communication.

Reason Reas ons s fo for r the the Grow Growin ing g Impo Import rtan ance ce of IMC: Several shifts in the advertising and media industry have caused IMC to develop into a primary strategy for marketers: 1. From media media adverti advertising sing to to multiple multiple forms of communica communication. tion. 2. From mass media to more specialized (niche) media, which are centered on specific target audiences? 3. From From a manu manufa fact ctur urer er-d -dom omin inat ated ed mark market et to a reta retail iler er-d -dom omin inat ated ed,, cons consum umer er-controlled market. 4. From generalgeneral-focus focus advert advertisin ising g and marketing marketing to to data-based data-based marketi marketing. ng. 5. From From low agency accounta accountabil bility ity to greate greaterr agency agency account accountabi abilit lity, y, partic particula ularl rly y in advertising. 6. From traditional compensation to performance-based compensation (increased sales or benefits to the company.

Selecting the Most Communications Communications Elements:

Effective

The goal of selecting the elements of proposed integrated marketing communications is to create a campaign that is effective and consistent across media platforms. Some marketers may want only ads with the greatest breadth of appeal: the executions that, when combined, provi provide de the greate greatest st number number of attent attention ion-get -gettin ting, g, branded branded,, and motiva motivati tional onal moment moments. s. Others may only want ads with the greatest depth of appeal: the ads with the greatest number of attention-getting, branded, and motivational points within each. Although integrated marketing communications is more than just an advertising campaign, the bulk of marketing dollars is spent on the creation and distribution of advertisements. Hence, the bulk of the research budget is also spent on these elements of the campaign. Once the key marketing pieces have been tested, the researched elements can then be applied applied to other contact points: letterhead, letterhead, packaging, packaging, logistics logistics,, customer customer service service training, training, and more, to complete the IMC cycle.


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What are are alte altern rnat ativ ivee appr approa oach ches es to mark market etin ing g whil whilee go goin ing g Q.6 What international? Study Pepsi’s international marketing strategy? Answer 

Introduction:

Internatio International nal marketing marketing (IM) or global marketing marketing refers refers to marketing carried out by companies overseas or across national borderlines. This strategy uses an extension of the techniques used in the home country of a firm.[1] According to the American Marketing Association (AMA) "international marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy satisfy individual individual and organizationa organizationall objectives. objectives."[2] In contrast to the definition of marketing only the word multinational has been added.[2] In simple words intern internati ational onal market marketing ing is the applic applicati ation on of market marketing ing princi principle pless to across across nation national al bounda boundarie ries. s. However However,, there there is a crosso crossover ver between between what what is common commonly ly express expressed ed as international marketing and global marketing, which is a similar term.


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ASSIGNMENT ON MARKETING MANAGEMENT The intersection is the result of the process of internationalization of internationalization.. Many American and European European authors authors see international international marketing as a simple simple extension extension of exporting, exporting, whereby the marketing mix 4P's is simply adapted in some way to take into account differences in consumers and segments. It then follows that global marketing takes a more standardized approach to world markets and focuses upon sameness, in other words the similarities in consumers and segments.

Four Ps: Elements of the marketing mix are often referred to as 'the four Ps': •

•

•

•

Product - A tangible object or an intangible service that is mass produced Product or manu manufa fact ctur ured ed on a larg large e scal scale e with with a spec specif ific ic volu volume me of unit units. s. Intangible products are often service based like the tourism industry & the hotel indu industry stry or codescodes-bas based ed produ products cts like like cell cell phone phone load load and credits. Typical examples of a mass produced tangible object are the motor car and the disposable razor razor.. A less obvious but ubiquitous mass produced service is a computer operating system. system . Price – The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product.

Place – Place represents the location where a product can be purchased. It is often often referr referred ed to as the dis distri tribu butio tion n channe channel. l. It can include include any physical store as well as virtual stores on the Internet. Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements - advertising advertising,, public relations, relations , word of mouth and point of sale. sale . A certain amount of crosso crossover ver occur occurs s when when promo promotio tion n uses uses the the four four princ principa ipall elemen elements ts together, together, which is common common in film promotion. promotion. Advertis Advertising ing covers covers any communic communicatio ation n that is paid for, from cinema commercia commercials, ls, radio radio and Internet adverts through print media and billboards. Public relations are where where the commu communic nicati ation on is not direct directly ly paid paid for and includ includes es press press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal commu communic nicati ation on about about the produc productt by ordina ordinary ry indivi individu duals als,, satis satisfie fied d custom customers ers or people people speci specific ficall ally y engage engaged d to creat create e word word of mouth mouth


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ASSIGNMENT ON MARKETING MANAGEMENT momentum. Sales staff often plays an important role in word of mouth and Public Relations (see Product above).

Broadl Broadly y define defined, d, optimi optimizin zing g the market marketing ing mix is the primar primary y respons responsibi ibili lity ty of marketing. By offering the product with the right combination of the four Ps marketers can improve their results and marketing effectiveness. Making small changes in the marketing mix is typically considered to be a tactical change. Arm Bains says making large changes in any of the four Ps can be considered strategic. For example, a large change in the price, say from $19.00 to $39.00 would be considered a strategic change in the position of the product. However a change of $130 to $129.99 would be considered a tactical change, potentially related to a promotional offer. The term 'marketing mix' however, does not imply that the 4P elements represent options. They are not trade-offs but are fundamental marketing issues that always need to be addressed. They are the fundamental actions that marketing requires whether determined explicitly or by default.

Extended marketing mix: There have been attempts to develop an 'extended marketing mix' to better accommodate specific aspects of marketing. For example, in the 1970s, Nickels and Jolson suggested the inclusion of packaging of packaging.. In the 1980s Kotler proposed public opinion and political power and Booms Booms and Bitner Bitner includ included ed three three additio additional nal 'Ps' 'Ps' to accomm accommoda odate te trends trends toward towardss a service or knowledge based economy: •

•

•

People – all people who directly directly or indirectl indirectly y influenc influence e the perceived perceived value of the product or service, including knowledge workers, employees, management and consumers. Process – procedures, mechanisms and flow of activities which lead to an exchange of value. Physical evidence – the direct sensory experience of a product or service that allows a customer to measure whether he or she has received value. Exam Exampl ples es migh mightt incl includ ude e the the way way a cust custom omer er is trea treate ted d by a staf staff f member, or the length of time a customer has to wait, or a cover letter from an insurance company, or the environment in which a product or service is delivered.

Four Cs: The Four Ps is also being replaced by the Four Cs model, consisting of consumer, cost, convenience, and communication . The Four Cs model is more consumer-oriented and fits better in the movement from mass marketing to niche marketing. The product part of the Four Ps model is replaced by consumer or consumer models, shifting the focus to satisfying the consumer. Another C replacement for Product is Capability. By defining offerings as individual capabilities that when combined and focused to a specific industry, creates a RAHUL GUPTA, MBAHCS (2 ND SEM), SUBJECT COCE- MB0030, SET-2

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ASSIGNMENT ON MARKETING MANAGEMENT custom solution rather than pigeon-holing a customer into a product. Pricing is replaced by cost, reflecting the reality of the total cost of ownership. Many factors affect cost, including but not limited to the customers cost to change or implement the new product or service and the customers cost for not selecting a competitors capability. Placement is replaced by the convenience function. With the rise of internet and hybrid models of purchasing, place is no longer relevant. Convenience takes into account the ease to buy a product, find a product, find information about a product, and several other considerations. Finally, the promotions feature is replaced by communication.

Four Cs in 7Cs compass model: This section may need to be vilified to meet Wikipedia's quality standards. standards . Please help by adding relevant relevant internal internal links, links, or by improving the section's layout layout.. (October 2009). This This section section may be confusing or unclear to readers. Please help clarify the article;; suggestions may be found on the talk page. article page. (October 2009) An editor has expressed a concern that this section lends undue weight to certain ideas relative to the section as a whole. Please help to discuss and resolve the dispute before removing this message. (October 2009). A formal approach to this custo customer mer-fo -focus cused ed marke marketin ting g mix is known known as 4C(Commodity 4C( Commodity,, Cost Cost,, Channel Channel,, Communication ) in 7Cs comp compass ass mode modell . This This system system is basica basically lly the fou fourr Ps renamed and reworded to provide a customer focus. The four Cs Model provides a demand/customer demand/customer centric version alternative to the well-known four Ps supply side model (product (product,, price price,, place place,, promotion promotion)) of marketing management. management. o o o o

Product→ Commodity Price → Cost Place → Channel Promotion→ Communication Communication


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

Pepsi's Global Strategy:

When the "You're in the Pepsi Generation" advertising campaign launched in 1963, it may have been the first time a brand was marketed primarily with an association to its consumers' inspirational attitudes. A decidedly youth-oriented strategy, the campaign hoped to hook young Baby Boomers while they were still young. In 1984 Pepsi launched another long-running campaign, "The Choice of a New Generation," and in 1997 they debuted the "GeneratioNext" concept. The newest campaign slogan, introduced this year, is "More Happy," which definitely coincides with one concrete example of "more" in the packaging of Pepsi products today— more designs. Many more. At least 35 distinct design ideas will grace the packaging of Pepsi's cans and bottles this year alone, and this design strategy may continue indefinitely. Though not "generational" in word, the campaign certainly has a youth-oriented feel with package designs, advertising, and websites that are fun and playful. PepsiCo worked clos closel ely y with with Pete Peterr Arnel Arnelll and Arnel Arnelll Group Group,, base based d in New New York York City City,, to devi devise se a compre comprehen hensiv sivee new strate strategy gy that that would would connect connect with with Pepsi' Pepsi'ss core core consume consumers. rs. Arnel Arnelll reinvented the Pepsi package as a meaningful and appealing communications tool for the latest generation of youth that are not overwhelmed by media, music, or digital distractions.



Experiential packaging:

Arnell Group (a wholly-owned subsidiary of Omnicom Group) is a design and brand creation firm specializing in experiential design and product innovation, preferring to take complete branding and packaging projects from first concept to complete market solutions. Peter Arnell, currently chairman and chief creative officer of Arnell Group, formed the Arnell Group Innovation Lab in 1999 to place invention and innovation at the forefront in a collab collaborat orative ive labora laborator tory y for corpor corporati ations ons intere intereste sted d in design designing ing for next genera generati tion on products and experiences. Arnell applied many of his philosophies in the Pepsi project. "Pet "Peter er has has taken taken a clas classi sicc and and turn turned ed it into into a moder modern, n, inno innovat vativ ive, e, and rele releva vant nt mark market etin ing g and and comm commun unic icat atio ions ns tool tool," ," said said Ron Ron Coug Coughl hlin in,, chie chieff mark market etin ing g offi office cer, r, RAHUL GUPTA, MBAHCS (2 ND SEM), SUBJECT COCE- MB0030, SET-2

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ASSIGNMENT ON MARKETING MANAGEMENT beverages, PepsiCo International. The new global look launched in February with eight new package designs across cans and bottles, and the campaign is unfolding in a similar manner overseas. The can designs roll out one at a time approximately three weeks apart to enhance the anticipation of discovery and to pique the interest of collectors. "Pro "Produ duct ct inno innova vati tion on toda today y must must be driv driven en by deep deep cons consum umer er mean meanin ing g and and connectivity," says Arnell. "It is less about unmet needs and more about giving people what they haven't asked for but are dying to have. Using design to turn packaging into personal consumer-powered media helps create the ultimate supportive and inspiring relationship between Pepsi and its youth audience." Thinking globally

The Pepsi can designs roll out one at a time, but the two-liter Pepsi bottles will have three or four designs out at any given time. Mike Doyle, creative director at Arnell Group, explains that there was a great depth of exploration and research that was conducted before even beginning to formulate a new Pepsi packaging strategy. strategy. PepsiCo and Arnell Arnell Group traveled traveled extensively extensively to emerging emerging markets to find key consumer product drivers for youth cultures and to learn how the Pepsi brand was perceived perceived in different different countries. countries. They found, somewhat somewhat surprisin surprisingly, gly, that there were very few differences around the world in how consumers felt about Pepsi's fun, effervescent brand image. "The brand equity is really consistent," says James Miller, marketing director, Pepsi-Cola North America. They also found many consistencies in youth cultures around the world in how today's youth is preoccupied with newness, discovery, and personalization of their possessions. Miller describes the design campaign's goal as "sustainable discovery," where the consumer audience is constantly intrigued and engaged. Designers at Arnell Group created the dozens of new and vibrant designs with only a handful of blue and gray shades. Each design tells a story of sorts and each can design has a unique website address on the side of the can. The first one on the "Your Pepsi" can allows web users to design a digital billboard that will appear in Times Square, and one coming shortly will allow users to mix their own music online. RAHUL GUPTA, MBAHCS (2 ND SEM), SUBJECT COCE- MB0030, SET-2

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ASSIGNMENT ON MARKETING MANAGEMENT "We redefined packaging as media in the marketplace for Pepsi," says Doyle. "It speaks to youth in their language." Doyle believes that the designs succeed because they are able to capture the audience's mind space. "The designs are reflecting back to the culture instead of talking to the culture or imposing on it." 

Reassuringly Pepsi:

Pepsi actually asked their loyal consumers what brand elements would have to remain so that they would be intuitively reassured that their favorite drinks were not changing and the brand they trusted was still essentially the same. Their answer was direct and consistent. Pepsi-lovers needed to see three elements for sure—the Pepsi "globe," the iconic Pepsi blue, b lue, and the familiar tilted Pepsi capital letters. Arnell Arnell Group Group upd update ated d the primar primary y logo logo substa substanti ntiall ally y and clever cleverly ly withou withoutt really really redesigning its key elements. The most recent logo design had the Pepsi wordmark on top of and slightly overlapping the iconic Pepsi red-white-and-blue "globe." On the previous can design, the word mark wrapped halfway around the can, and the globe was off-center. off-center. The new cans and bottles have un-bundled the word and globe, making the newly centered globe more of the hero, and the smaller Pepsi word mark less prominent. Televi Televisio sion n ad campai campaigns gns are reinfo reinforci rcing ng the globe-c globe-cent entric ric approach approach by featur featuring ing a boulder-sized Pepsi globe in various settings careening to and fro like a pinball. In the ads and on the front of most of the new packages is the reassuring tag line: "Same Pepsi inside, new look outside." Miller explains that it is customary and important to reassure consumers for at least six months in situations like this. Miller also sees today's youth as demanding authenticity from the products they come into contact with in their day-to-day experiences. The new Pepsi design strategy is versatile because it can be authentic and stay current, and it could also make introducing special seasonal or regional designs more intriguing and less disrup disruptiv tive. e. "This "This is a new way of using using packagi packaging ng as media, media,"" explai explains ns Miller Miller.. "The "The consumer consumer is looking looking for more variety and expecting expecting more from their brands. They want to have a dialogue with their favorite brands."


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Assignment on Marketing Management

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