TYBMS SEM 5 Marketing : Strategic Marketing Management (Q.P. April 2019 with Solution)

 Paper/Subject Code: 46019/ Marketing: Strategic Marketing Management

TYBMS SEM 5 

Marketing

Strategic Marketing Management

(Q.P. April 2019 with Solution)

                                                              

General Instructions:

1. All questions are compulsory.

2. Figures to the right indicate full marks.

3. Use of simple calculator is allowed. 

Q.1 A Fill in the blanks. (Any 8 of 10)                    (8)

1. The _________ involves a set of unique marks and associations that identify the offering and create  value beyond the product and service aspects of the offering

Ans: Brand

2 _______ Identifies the market in which the company operates, defines the value exchange among key market entities in which superior value can be created.

Ans: Marketspace

3 _______ is a marketing concept that outlines what a business should do to market its product or service to its customers.

Ans: Marketing Strategy 

4. _______ is the process of identifying customers for whom the company will optimize its offering.

Ans: Targeting

5. ________approach of Business model starts design of particular aspect of offering, followed by identification of target customers.

Ans: Bottom up

6. _______ are those who compete with the same set of target customers to fulfil the customer needs.

Ans: Competitors

7. ________ are the tools which are used to enhance the value of the offering for the customers of collaborator and employees.

Ans: Levers

8. Captive pricing is also called as _________ pricing

Ans: complementary

9. The non monetary benefits that are created by the customers which are of strategic importance to the company is called as _________. 

Ans: customer equity

10. Brand hierarchy is called as ________. 

Ans: brand architecture

(B) True or False (Any 7)                    (7)

1. Moore's model identifies six distinct categories

Ans: False

2. In Explicit collaboration them are no formal relationships or contractual agreements.

Ans: False

3. A fighting brand is a brand that thatches or undercuts the competitor's prices.

Ans: True

4. Business Analysis is the first stage of product development.

Ans: False

5. Hybrid channel is a distribution model in which manufacturer and customer interact with multiple channel as well as each other

Ans: True

6 . Marketing is an art and not a science.

Ans: False

7. Distribution defines the media channels) through which the product information is delivered to customers.

Ans: False

8. Spiffs are refunds given to customers after they complete purchase

Ans: False

9. Horizontal integration involves acquiring a business entity occupying a different level in the value delivery chain.

Ans: False

10. Umbrella branding is nothing but enjoys leverages of existing brand.

Ans: True

Q.2a Explain the difference between marketing planning and strategic planning

	Marketing planning	Strategic planning
Scope	Narrower and focused specifically on the marketing function and its contribution to overall business goals.	Broad and organization-wide. It encompasses all functional areas of the business (e.g., finance, operations, human resources, research and development, as well as marketing).
Time Horizon	Shorter-term, typically covering a year, although it aligns with the longer-term strategic plan. It focuses on specific marketing objectives and activities within that timeframe.	Long-term, typically spanning 3-5 years or even longer. It focuses on the overarching direction and future of the entire organization.
Focus	Determining how the organization will reach its target market, communicate its value proposition, build customer relationships, and achieve its sales and marketing objectives. It's about the "how" of reaching customers and achieving marketing goals.	Defining the organization's mission, vision, values, and overall goals. It's about "why" the organization exists and "what" it aims to achieve in the long run. It involves analyzing the external environment (opportunities and threats) and internal capabilities (strengths and weaknesses) to determine strategic advantages.
Output	A marketing plan that details specific marketing objectives (derived from the strategic plan), target markets, marketing strategies (e.g., product, price, promotion, place/distribution), tactics (specific actions), budget, and key performance indicators (KPIs) to measure success.	A strategic plan that outlines the organization's long-term objectives, broad strategies to achieve them, and how resources will be allocated across different functions.
Drive by	The marketing department, often in collaboration with sales and other relevant departments, guided by the overall strategic direction.	Top management and executive leadership, with input from various stakeholders.
Frequency	Typically conducted annually, often with more frequent campaign-level planning and adjustments.	Typically conducted annually or every few years, with periodic reviews and adjustments.

b. What is the five C framework in marketing strategy?

The Five C Framework is a situational analysis tool used in marketing strategy to gain a comprehensive understanding of the marketing environment. It helps businesses analyze the key factors that influence their decisions and performance. The five Cs stand for:

1. Company: This involves a thorough internal analysis of your own organization. It includes:

   • Strengths: What are your competitive advantages? What do you do well?
   • Weaknesses: Where can you improve? What are your limitations?
   • Resources: What financial, human, technological, and other resources do you have?
   • Culture and Values: What are the core beliefs and principles that guide your company?
   • Past Performance: What has worked well (or not) in the past?

2. Customers: Understanding your target audience is crucial. This includes:

   • Needs and Wants: What problems are they trying to solve? What desires do they have?
   • Demographics: Age, gender, income, education, location, etc.
   • Psychographics: Lifestyle, values, attitudes, interests, opinions.
   • Buying Behavior: How, when, where, and why do they purchase?
   • Decision-Making Process: Who is involved in the purchase decision? What factors influence them?

3. Competitors: Analyzing your rivals helps you identify opportunities and threats. This involves:

   • Direct Competitors: Businesses offering similar products or services to the same target market.
   • Indirect Competitors: Businesses offering different products or services that could still satisfy the same customer need.
   • Strengths and Weaknesses: What are their advantages and disadvantages?
   • Strategies: What are their marketing, pricing, and distribution approaches?
   • Market Share: What portion of the market do they control?

4. Collaborators: These are external entities that work with your company to reach your goals. This includes:

   • Suppliers: Who provides your raw materials or components?
   • Distributors: Who helps you get your products to the customers (e.g., retailers, wholesalers)?
   • Agencies: Marketing, advertising, public relations firms.
   • Strategic Alliances: Other companies you partner with for mutual benefit.

5. Context: This broad category encompasses the macro-environmental factors that can impact your business. These are often external and largely uncontrollable. It includes:

   • Political/Legal: Government regulations, laws, political stability.
   • Economic: Inflation, interest rates, economic growth, unemployment.
   • Social/Cultural: Changing demographics, cultural trends, consumer values, lifestyle shifts.
   • Technological: New innovations, automation, communication advancements.
   • Environmental: Sustainability concerns, resource availability, environmental regulations.

OR

c. Explain in detail the G-STIC framework for marketing planning.

The G-STIC framework, developed by Alexander Chernev, provides a comprehensive and sequential approach to marketing planning. It emphasizes a logical flow from defining objectives to controlling the outcomes of marketing activities. The acronym G-STIC stands for:

• Goal
• Strategy
• Tactics
• Implementation
• Control

Component in detail:

1. Goal: Defining the Supreme Benchmark for Success

The first step in the G-STIC framework is setting clear, specific, and measurable marketing goals. The goal acts as the ultimate criterion for success and guides all subsequent marketing activities. This stage involves two key decisions:

• Focus: What does the company aim to achieve with its marketing efforts? This could be increasing sales volume, market share, brand awareness, customer acquisition, customer retention, profitability, or a combination of these. The focus should be clearly articulated to provide direction for the entire marketing plan.
• Benchmark: How will the company measure its progress towards the goal? This involves setting specific quantitative and temporal performance benchmarks. These benchmarks should be:
  • Monetary: Expressed in financial terms (e.g., increase sales revenue by 15%, achieve a profit margin of 10%).
  • Quantitative: Expressed in numerical terms (e.g., acquire 10,000 new customers, increase website traffic by 20%).
  • Non-Monetary: Focused on non-financial aspects (e.g., improve brand perception scores by 5 points, increase customer satisfaction ratings to 4.5 out of 5). These often support the achievement of monetary goals.
  • Temporal: Include a specific timeframe for achieving the goals (e.g., within the next fiscal year, by the end of the second quarter).

A well-defined goal provides clarity, focus, and a basis for evaluating the effectiveness of the marketing plan.

2. Strategy: Outlining the Logic of Value Creation

The strategy component outlines the overarching approach the company will take to achieve its marketing goals. It defines the "how" after establishing the "what." This stage involves two crucial decisions:

• Target Market: Identifying the specific group(s) of customers the company aims to create value for. This involves understanding their needs, wants, characteristics, and behaviors. Effective target market identification often utilizes the "5 Cs" framework:
  • Customers: Who are the existing and potential customers? What are their needs?
  • Company: What are the company's resources, capabilities, and limitations?
  • Competitors: Who are the direct and indirect competitors? What are their strengths and weaknesses?
  • Collaborators: Who are the external partners (suppliers, distributors, agencies) that can help reach the target market?
  • Context: What are the relevant macro-environmental factors (economic, social, technological, political, legal) that influence the market?
• Value Proposition: Defining the unique set of benefits or value that the company's offering will provide to the target market. It articulates why customers should choose this offering over competitors. A strong value proposition should be:
  • Customer-focused: Centered on solving customer problems or fulfilling their needs.
  • Differentiated: Clearly distinct from competitors' offerings.
  • Compelling: Communicating clear and tangible benefits.

The strategy provides the framework for how the company will position itself in the market and create value for its chosen customers.

3. Tactics: Designing the Specific Marketing Mix

Tactics are the specific marketing activities and tools the company will use to execute its strategy and deliver the value proposition to the target market. This stage involves designing the "marketing mix," often referred to as the "7 Ts" in the context of the G-STIC framework (expanding on the traditional 4 Ps):

• Product: The goods or services offered to the target market, including features, quality, branding, packaging, and support services.
• Service: The intangible aspects of the offering, such as customer support, delivery, installation, and after-sales service.
• Brand: The name, logo, and overall identity of the offering, which helps to create recognition and build emotional connections with customers.
• Price: The amount customers pay for the offering, including pricing strategies, discounts, and payment terms.
• Incentives: Any additional inducements offered to customers to encourage purchase, such as promotions, loyalty programs, and special offers.
• Communication: All activities used to inform, persuade, and remind target customers about the offering, including advertising, public relations, content marketing, social media, and personal selling.
• Distribution: The channels and processes used to make the offering available to the target market, including logistics, retail, online sales, and intermediaries.

The tactical decisions should be consistent with the overall strategy and work together to create a compelling value proposition for the target market.

4. Implementation: Outlining the Execution Plan

Implementation focuses on the practical steps required to put the marketing strategy and tactics into action. This involves defining the "who, when, and how" of executing the marketing plan. This stage includes:

• Business Infrastructure: Defining the necessary resources, systems, and organizational structure to support the marketing activities. This includes technology, personnel, budgets, and internal processes.
• Business Processes: Designing the specific workflows and procedures for carrying out the marketing tactics. This involves outlining the steps for activities like launching a new product, running an advertising campaign, or managing customer relationships.
• Implementation Schedule: Setting a timeline with specific deadlines and responsibilities for each marketing activity. This ensures that the plan is executed in a timely and coordinated manner.

A well-defined implementation plan ensures that the marketing strategy and tactics are translated into concrete actions.

5. Control: Evaluating Performance and Adapting

The final stage of the G-STIC framework involves monitoring and evaluating the results of the marketing efforts against the established goals and benchmarks. This allows the company to assess the effectiveness of the plan and make necessary adjustments. This stage includes two key processes:

• Evaluating Performance: Tracking key performance indicators (KPIs) related to the goals and benchmarks set in the first stage. This involves collecting and analyzing data on sales, market share, customer acquisition cost, brand awareness, customer satisfaction, and other relevant metrics.
• Monitoring the Environment: Continuously analyzing changes in the external environment (competitor actions, market trends, technological developments, etc.) that may impact the effectiveness of the marketing plan.

Based on the performance evaluation and environmental monitoring, the company can identify areas for improvement, adapt its strategy and tactics, and ensure that the marketing plan remains relevant and effective in achieving its goals. The control phase is an ongoing process that informs future marketing planning cycles.

Q. 3 a Explain the role of strategic positioning in creating company value.

Strategic positioning plays a fundamental and defining role in creating a company. It's the bedrock upon which a successful and sustainable enterprise is built. Here's how:

• Defining Identity and Focus: Strategic positioning forces a company to make clear choices about who it serves, what value it provides, and how it does so uniquely compared to competitors. This process of defining its "position" in the market establishes the company's identity and provides a clear focus for all its activities. Without a defined position, a company risks being a generic offering, appealing to no one in particular.   

• Creating Competitive Advantage: A well-crafted strategic position is the foundation of sustainable competitive advantage. By choosing a unique way to deliver value or target a specific segment with tailored offerings, a company can differentiate itself from rivals. This differentiation can stem from various sources, such as:   

  • Cost Leadership: Offering comparable value at a lower cost.   
  • Differentiation: Offering unique value that customers are willing to pay a premium for (e.g., superior quality, innovative features, exceptional service).   
  • Focus: Serving a specific niche market exceptionally well.   

  Strategic positioning helps the company identify and build these advantages.

• Guiding Resource Allocation: Once a strategic position is established, it provides a clear framework for allocating the company's limited resources (financial, human, technological). Investments and efforts are directed towards activities that reinforce the chosen position and build the necessary capabilities. For example, a company pursuing a differentiation strategy might invest heavily in research and development or customer service.

• Driving Value Proposition Development: Strategic positioning directly shapes the company's value proposition – the promise of value it delivers to its chosen customers. Understanding the target customer's needs and the company's unique way of meeting those needs is central to positioning. A clear position allows the company to articulate a compelling value proposition that resonates with its target market.

• Attracting the Right Customers: A well-communicated strategic position attracts customers whose needs and preferences align with the company's offerings. By clearly defining its target market and the value it provides, the company can focus its marketing efforts and avoid wasting resources on customers who are unlikely to be a good fit.

• Building Brand Identity and Reputation: Strategic positioning is intrinsically linked to brand building. The chosen position influences the company's messaging, imagery, and overall brand identity. A consistent and compelling position helps build a strong and recognizable brand reputation in the minds of customers.   

• Fostering Internal Alignment: A clear strategic position provides a unifying purpose for everyone within the company. It helps align different departments and functions towards a common goal and ensures that all activities are working in concert to deliver the intended value to the target market.   

• Enabling Strategic Fit: Strategic positioning encourages "strategic fit" – the alignment of a company's activities with its overall strategy. When a company's activities reinforce its chosen position, it creates a powerful synergy that is difficult for competitors to replicate.

b. What are the factors to be considered while segmenting

When segmenting a market, whether it's consumer or business, several crucial factors need careful consideration to ensure the segments are useful and effective for your marketing and overall business strategy. Here are the factors:

1. Measurability:

• Size: Can you determine the size (number of potential customers) of the segment?
• Purchasing Power: Can you estimate the segment's ability to spend?
• Characteristics: Can you identify and quantify the key characteristics of the segment (e.g., demographics, usage patterns)?

2. Accessibility:

• Reachability: Can you effectively reach and serve the segment through your marketing channels and distribution network?
• Cost-Effectiveness: Is it economically viable to target this segment?

3. Substantiality:

• Profitability: Is the segment large enough or does it have sufficient purchasing power to be profitable?
• Viability: Is the segment likely to be sustainable over time?

4. Differentiability:

• Distinct Needs: Are the needs, wants, and responses to marketing stimuli of this segment significantly different from other segments?
• Uniqueness: Does the segment require a unique marketing mix?

5. Actionability:

• Implementable Strategies: Can you develop and implement effective marketing strategies to attract and serve this segment?
• Resource Allocation: Do you have the resources (financial, human, etc.) to effectively target this segment?

OR 

c. What do you mean by collaboration? Explain the levels, advantages and disadvantages of collaboration.

Collaboration is the process of two or more individuals or groups working together to achieve a common goal or complete a task. It emphasizes ¹ shared responsibility, mutual contribution, and often involves the pooling of resources, knowledge, and skills. The essence of collaboration lies in the idea that the collective effort produces a result greater than the sum of individual contributions.

Levels of Collaboration:

Collaboration isn't a monolithic concept; it exists on a spectrum. Here are some common levels of collaboration, often presented in increasing order of intensity and integration:

1. Networking/Socializing: This is the most basic level, involving informal connections and information sharing between individuals or groups for mutual benefit. Roles are loosely defined, communication is informal, and decision-making remains largely independent. There's minimal risk and commitment involved.

   • Example: Attending industry events to exchange ideas and contacts.

2. Cooperation: This level involves a more formal agreement to work together on specific projects or initiatives. Participants maintain their autonomy but may adjust their activities to benefit the joint effort. Communication is more frequent, and there's limited shared decision-making.

   • Example: Two departments sharing resources or cross-promoting each other's events.

3. Coordination: This involves a higher degree of integration, with defined roles and formalized links between the collaborating parties. They share information and resources more actively, with regular communication and shared decision-making around joint work. There's a low to moderate level of risk and resource sharing.

   • Example: Different teams within a company working together on a product launch, with defined responsibilities for each team.

4. Coalition: This level signifies a more strategic alliance where participants share ideas and resources frequently, with prioritized communication and joint decision-making where all members often have a vote.

   • Example: Several non-profit organizations forming a coalition to advocate for a specific policy change.

5. Full Collaboration: This represents the deepest level of partnership, where collaborating entities may even merge into a single system for the duration of the project or longer. Communication is frequent and characterized by mutual trust, with equally shared ideas and decision-making. Resources are often pooled, and there's a higher level of risk but also high trust and potential for significant synergy.

   • Example: Two companies forming a joint venture to develop a new technology.

Other models might describe collaboration in slightly different stages or with varying terminology, but the underlying principle is the increasing interdependence and shared purpose among the collaborators.

Advantages of Collaboration:

• Enhanced Innovation and Creativity: Diverse perspectives and brainstorming can lead to more innovative solutions and ideas.
• Improved Problem-Solving: Different viewpoints and expertise can contribute to more effective and comprehensive solutions to complex problems.
• Increased Efficiency and Productivity: Sharing workloads, resources, and skills can lead to faster completion of tasks and reduced duplication of effort.
• Knowledge and Skill Sharing: Collaboration facilitates learning from others and the development of new skills and knowledge.
• Stronger Relationships and Trust: Working together builds rapport, trust, and stronger interpersonal connections among collaborators.
• Better Decision-Making: Collective input and discussion can lead to more informed and well-rounded decisions.
• Shared Responsibility and Accountability: When everyone contributes, there's a greater sense of ownership and accountability for the outcomes.
• Increased Employee Engagement and Satisfaction: Feeling part of a team and contributing to a shared goal can boost morale and engagement.
• Resource Optimization: Collaboration allows for the pooling and efficient utilization of resources, reducing waste.
• Enhanced Adaptability and Resilience: Diverse teams are often better equipped to adapt to change and overcome challenges.
• Improved Communication: Regular interaction fosters clearer and more effective communication.
• Attracting and Retaining Talent: A collaborative work environment can be more appealing to potential and current employees.
• Breaking Down Silos: Collaboration across departments or organizations can foster better understanding and alignment.

Disadvantages of Collaboration:

• Time-Consuming: Collaboration can sometimes be a slower process than individual work, especially with large groups or complex issues.
• Potential for Conflict: Differences in opinions, working styles, and personalities can lead to disagreements and conflicts.
• Unequal Contribution: Some individuals or groups may contribute less than others, leading to resentment or inefficiency.
• Groupthink: The desire for harmony or conformity within a group can stifle dissenting opinions and lead to poor decisions.
• Domination by Individuals: Strong personalities can sometimes dominate discussions and decision-making, undermining the collaborative spirit.
• Lack of Accountability: In shared responsibility, it can sometimes be unclear who is ultimately accountable for specific tasks or outcomes.
• Communication Challenges: Poor communication can hinder the collaborative process, leading to misunderstandings and delays.
• Security Risks: In digital collaboration, there can be risks related to data security and unauthorized access.
• Extended Learning Curves: New collaboration tools or processes can require time and effort for everyone to learn and adapt.
• Dependence on Others: Progress can be slowed down if collaborators are not reliable or timely in their contributions.
• "Too Many Cooks" Syndrome: Having too many people involved in a task can sometimes lead to confusion and inefficiency.
• Loss of Individual Autonomy: In highly collaborative environments, individuals may feel a reduced sense of personal control over their work.

Q.4 a Explain the key decisions to be taken for designing distribution channels.

Designing effective distribution channels involves several key decisions that aim to get the right products to the right customers at the right time and place. Here's a breakdown of the crucial decisions:

1. Analyzing Customer Needs:

• Understanding target audience: Who are your customers? What are their buying habits, preferences, and expectations regarding where, when, and how they purchase products? Consider factors like their geographic location, demographics, purchasing power, and online vs. offline behavior.
• Desired service levels: What level of service do your customers expect from the channel? This includes factors like delivery speed, convenience, product information, after-sales support, and return policies.
• Channel preferences: Which channels do your target customers prefer to use for purchasing similar products? Do they favor online marketplaces, physical stores, direct sales, or a combination?
• Willingness to pay: How does the distribution channel impact the final price, and are customers willing to pay for the convenience and services offered by different channels?

2. Setting Channel Objectives:

• Market coverage: How wide of a market reach do you need to achieve? Do you aim for intensive distribution (making the product available everywhere), selective distribution (using a limited number of outlets), or exclusive distribution (granting rights to a single intermediary)?
• Sales targets: What are your desired sales volumes and market share goals for each channel?
• Customer service levels: Define the specific service levels you want to provide through each channel, aligning with customer expectations.
• Brand image and positioning: Ensure that the chosen channels reinforce your brand image and the desired positioning of your product.
• Cost-effectiveness: Balance the need for reach and service with the cost of managing different channels.

3. Identifying Major Channel Alternatives:

• Channel length: Decide on the number of intermediaries between you and the end customer. This could range from direct marketing (no intermediaries) to longer channels involving wholesalers, distributors, and retailers.
• Types of intermediaries: Explore the various types of intermediaries available, such as retailers (department stores, specialty stores, online retailers), wholesalers, distributors, agents, and brokers.
• Direct vs. Indirect channels: Determine the appropriate mix of direct channels (e.g., company-owned stores, e-commerce website, direct sales force) and indirect channels (using intermediaries).
• Multi-channel and Omni-channel strategies: Consider using a combination of different channels to reach various customer segments (multi-channel) and creating a seamless and integrated customer experience across all available channels (omni-channel).

4. Evaluating the Major Alternatives:

• Economic criteria: Assess the costs and benefits associated with each channel alternative, including sales potential, costs of setting up and managing the channel, and potential profit margins.
• Control criteria: Evaluate the level of control you can maintain over the marketing of your product in each channel. Shorter channels generally offer more control over pricing, branding, and customer interactions.
• Adaptive criteria: Consider the flexibility and adaptability of each channel to changing market conditions, technological advancements, and competitive pressures.
• Compatibility: Ensure that the chosen channels align with your overall business objectives, resources, and capabilities.
• Channel partner capabilities: If using intermediaries, assess their reach, reputation, expertise, financial stability, and alignment with your brand values.

5. Designing the Channel System:

• Selecting channel members: Choose specific intermediaries based on the evaluation criteria.
• Defining responsibilities and roles: Clearly outline the responsibilities of each channel member regarding pricing, sales conditions, service levels, and territorial rights.
• Establishing channel relationships: Develop strong and collaborative relationships with your channel partners through clear communication, mutual goals, and support.
• Managing channel conflict: Anticipate potential conflicts between different channels and develop strategies for resolution.

6. Implementing and Managing the Channel:

• Putting the chosen channels into operation.
• Training and motivating channel partners.
• Monitoring channel performance: Track key metrics like sales, customer satisfaction, and efficiency.
• Evaluating and adjusting the channel design over time in response to market changes and performance feedback.

b. Explain the new product development process.

The New Product Development (NPD) process is a systematic series of steps that companies undertake to conceive, develop, and bring new products or services to the market. While the number of stages can vary slightly depending on the model, a common framework includes the following:   

1. Idea Generation: This is the initial stage where the goal is to generate a large pool of new product ideas. These ideas can come from various sources, including:   

• Internal Sources: Employees, R&D departments, sales teams, and customer service.   
• External Sources: Customers, competitors, suppliers, distributors, market research, and industry trends.   
• Brainstorming and Creativity Techniques: Utilizing methods like SWOT analysis, SCAMPER, and mind mapping to stimulate innovative thinking.

2. Idea Screening: The purpose of this stage is to filter the generated ideas and identify the most promising ones. This involves evaluating ideas based on several criteria, such as:   

• Market Potential: Is there a sufficient market size and demand for the product?
• Feasibility: Can the product be developed technically and within budget?
• Strategic Fit: Does the idea align with the company's objectives, resources, and brand?
• Profitability: Does the idea have the potential to be profitable?   

3. Concept Development and Testing: The surviving ideas are then developed into detailed product concepts. This involves:   

• Defining the Target Market: Identifying the specific group of consumers the product is aimed at.   
• Outlining Product Features and Benefits: Describing what the product will do and the value it will offer to customers.   
• Creating a Product Positioning Statement: Defining how the product will be perceived in the market relative to competitors.
• Concept Testing: Presenting the product concept to potential customers to gather feedback on its attractiveness, understandability, and potential for adoption.   

4. Marketing Strategy Development: In this stage, a preliminary marketing strategy is developed, outlining:

• Target Market: Further detailing the intended customer base.
• Value Proposition: Summarizing the benefits the product will offer to the target market.   
• Pricing, Distribution, and Promotion Strategies: Initial plans for how the product will be priced, where it will be sold, and how it will be advertised.
• Sales, Market Share, and Profit Goals: Setting initial objectives for the product's performance.   

5. Business Analysis: A thorough financial evaluation of the product concept is conducted to assess its commercial viability. This includes:

• Estimating Demand and Sales: Forecasting potential sales volume.   
• Analyzing Costs: Projecting development, production, marketing, and distribution expenses.   
• Determining Profitability: Calculating potential profits and return on investment.   
• Assessing Risks: Identifying potential financial and market risks.   

6. Product Development: If the business analysis is favorable, the product concept moves into the actual development phase. This involves:   

• Developing a Prototype: Creating one or more physical or virtual versions of the product for testing and refinement.   
• Engineering and Design: Focusing on the technical aspects of the product, ensuring it is functional, safe, and meets the defined specifications.
• Testing and Refinement: Conducting rigorous testing to identify and fix any issues or make improvements to the product's performance and design.

7. Test Marketing: Before a full-scale launch, the product is often introduced in a limited geographical area or to a specific group of consumers to gauge market reaction under real-world conditions. This helps to:   

• Test the Marketing Mix: Evaluate the effectiveness of the pricing, distribution, and promotion strategies.
• Identify Potential Problems: Uncover any unforeseen issues with the product or its marketing.
• Gather Feedback: Obtain insights from actual customers to make final adjustments before the full launch.   

8. Commercialization: If the test marketing results are positive, the product is ready for full-scale launch. This stage involves:

• Full-Scale Production: Scaling up manufacturing to meet anticipated demand.   
• Distribution: Making the product available to the target market through chosen channels.
• Marketing and Promotion: Implementing the marketing strategy to create awareness and drive sales.   
• Post-Launch Evaluation: Monitoring the product's performance, gathering customer feedback, and making necessary adjustments to ensure its success in the market.

OR

C. Enumerate the types of pioneers also explain the benefits and drawbacks of being a pioneer in the market.

Types of Pioneers

While the term "pioneer" generally refers to being the first to offer a particular product or service in a market, we can categorize pioneers based on the nature of their pioneering effort:

1. Product Pioneers: These are the first to introduce a completely new product category or a significantly innovative product within an existing category. Examples include the first personal computer, the first smartphone, or the first electric vehicle.

2. Technological Pioneers: These pioneers are the first to apply a new technology to a product or service, fundamentally changing its functionality or performance. For instance, the first company to use internet technology for online retail.

3. Marketing Pioneers: These are the first to use a novel marketing approach, distribution channel, or business model that significantly alters how a product or service is offered and sold. Think of the first company to successfully implement a subscription-based service or a direct-to-consumer online model in a specific industry.

4. Market Pioneers: These are the first to enter a new geographic market with an existing product or service. This requires adapting to local consumer preferences, regulations, and competitive landscapes.

Benefits of Being a Pioneer in the Market

Being a pioneer can offer significant advantages, often referred to as "first-mover advantages":

• Establish Brand Leadership and Image: Pioneers have the opportunity to shape consumer perceptions and become the "standard" or the "original" in the category. This can lead to strong brand recognition, preference, and loyalty.
• Capture Early Market Share: By being first, pioneers can attract early adopters and build a substantial customer base before competitors enter the market. This can create significant barriers to entry for later players.
• Set Industry Standards: Pioneers can influence product design, features, pricing strategies, and distribution channels, potentially creating standards that later entrants must follow.
• Build Strong Relationships: Early interaction with customers allows pioneers to build strong relationships and gather valuable feedback, which can be used for continuous improvement and to solidify customer loyalty.
• Potential for Higher Profit Margins: With less initial competition, pioneers might be able to command premium pricing and achieve higher profit margins in the early stages.
• Accumulate Experience and Expertise: Being the first allows the pioneer to learn and refine their offerings and processes over time, building valuable experience that can be difficult for followers to replicate quickly.
• Secure Key Resources and Partnerships: Pioneers might have the first pick of valuable resources, distribution channels, and potential partners, creating a competitive advantage.
• Positive Publicity and Buzz: Launching a truly new product or service often generates significant media attention and word-of-mouth marketing.

Drawbacks of Being a Pioneer in the Market

Despite the potential advantages, being a pioneer also carries significant risks and challenges, often referred to as "first-mover disadvantages":

• High Research and Development Costs: Developing a truly new product or service often involves substantial investment in R&D without the benefit of learning from competitors' mistakes.
• Market Uncertainty and Education Costs: Pioneers face the challenge of educating consumers about a new product category and creating demand. This can be time-consuming and expensive.
• Risk of Failure: There's a higher risk that the pioneering product or service might not be accepted by the market, leading to significant financial losses.
• Learning Curve for Production and Marketing: Pioneers may face inefficiencies and errors in early production and marketing efforts as they learn what works best.
• Vulnerability to Imitation and Improvement: Later entrants can observe the pioneer's successes and failures, potentially offering improved products or services at lower prices.
• Technological Uncertainty: If the underlying technology is new, there's a risk of it becoming obsolete or being superseded by a better alternative developed by followers.
• Infrastructure Development Costs: Pioneers might need to invest in building the necessary infrastructure (e.g., distribution networks, after-sales service) to support their new offering.
• Potential for Regulatory Hurdles: Introducing a completely new product or service might attract regulatory scrutiny or require navigating unforeseen legal challenges.

Q. 5 a Explain the factors responsible for brand repositioning.

Brand repositioning is a strategic marketing process aimed at changing the way a brand is perceived by its target audience. Several factors can necessitate or drive a company to undertake this significant shift:

1. Changing Consumer Preferences and Trends:

• Evolving Needs: Consumer tastes, values, and lifestyles are dynamic. A brand might need to reposition itself to align with new preferences, such as a growing demand for healthier options, sustainable products, or ethical practices.
• Demographic Shifts: Changes in the age, income, or cultural makeup of the target market can make a brand's current positioning less relevant. To appeal to a new or growing demographic, repositioning might be necessary.

2. Increased or New Competition:

• Market Saturation: As a market becomes crowded, a brand might need to find a new niche or differentiate itself more effectively to stand out from competitors.
• New Entrants: The arrival of new competitors with innovative offerings or strong value propositions can threaten an existing brand's market share, requiring a repositioning to maintain relevance.

3. Declining Sales or Market Share:

• Brand Fatigue: Over time, a brand's message or image might become stale, leading to decreased consumer interest and declining sales. Repositioning can inject new life into the brand.
• Misalignment with the Market: The brand's current positioning might no longer resonate with the target audience, resulting in poor performance. Repositioning aims to create a stronger connection.

4. Technological Advancements:

• Disruptive Technologies: New technologies can change the way consumers interact with products and services. Brands might need to reposition themselves to leverage these advancements or to address the challenges they pose.

5. Internal Strategic Shifts:

• New Product Launches or Diversification: When a company introduces new products or enters new markets, the existing brand positioning might not be broad enough or relevant to the expanded offerings. Repositioning can create a more encompassing brand identity.
• Change in Company Values or Mission: A fundamental shift in the company's core values or strategic direction might necessitate a repositioning to accurately reflect the new identity.

6. Brand Image Problems or Negative Associations:

• Scandals or Crises: Negative events can severely damage a brand's reputation. Repositioning can be a strategy to distance the brand from past issues and rebuild trust with consumers.
• Outdated or Irrelevant Image: A brand might be perceived as old-fashioned, boring, or out of touch with current trends. Repositioning can modernize its image and make it more appealing.

7. Opportunity to Target New Markets:

• Untapped Segments: A brand might identify a new customer segment that is not currently being adequately served. Repositioning can help tailor the brand's message and offerings to attract this new audience.
• Global Expansion: Entering new geographic markets often requires adapting the brand's positioning to resonate with local cultures and preferences.

b. Explain Moore's Model of adoption of new technologies.

Moore's "model of new technology" most likely refers to Geoffrey Moore's adaptation of the Technology Adoption Lifecycle, particularly as described in his influential book "Crossing the Chasm." It's important to distinguish this from Gordon Moore's Law, which is a prediction about the doubling of transistors on a microchip.

Geoffrey Moore's model focuses on the psychological and sociological differences between various consumer segments and how these differences impact the adoption of new, particularly disruptive, technologies. He builds upon Everett Rogers' Diffusion of Innovations theory but highlights a critical gap – the "chasm" – that often exists between early adopters (visionaries) and the early majority (pragmatists).   

Moore's model:

The Technology Adoption Lifecycle (as adapted by Moore):

Moore identifies five main groups of adopters over time, forming a bell curve:   

1. Innovators (2.5%): These are the technology enthusiasts. They are the first to try new products, often even before they are fully developed. They are risk-takers, not necessarily driven by a specific need, but by the excitement of new technology itself. Their feedback is valuable for early-stage development.   

2. Early Adopters (13.5%): These are the visionaries. They see the potential of the new technology to provide a strategic breakthrough or gain a competitive advantage. They are willing to tolerate some imperfections and want to be the first to leverage the innovation for significant benefit. They are influential and can drive early market momentum.   

3. The Chasm: This is the crucial gap that Moore highlights. There's a significant difference in expectations and motivations between early adopters and the early majority.   

   • Early Adopters (Visionaries): They are willing to take risks and are excited by the potential of the technology. They often seek radical change.   
   • Early Majority (Pragmatists): They are more risk-averse and want to see that the technology is proven and provides practical benefits and productivity improvements. They rely on references and established solutions.   

   Crossing the chasm is the critical challenge for new technology companies. Many fail here because their initial success with early adopters doesn't translate to the mainstream market.

4. Early Majority (34%): These are the pragmatists. They are a large group that waits to see if the technology is well-established, easy to use, and has proven benefits. They look for complete solutions, good support, and established vendor credibility. Getting the early majority on board is key to widespread adoption.   

5. Late Majority (34%): These are the conservatives. They are even more risk-averse than the early majority. They adopt new technologies only when they have become the standard and are widely accepted. They are often driven by necessity rather than opportunity.   

6. Laggards (16%): These are the skeptics. They are the last to adopt, if they adopt at all. They are resistant to change and often only adopt when the older technology is no longer supported.   

Key Insights from Moore's Model:

• The Chasm is Real: The transition from early adopters to the early majority is not a smooth progression. It requires a significant shift in marketing strategy, product focus, and company resources.
• Focus on a Niche: To cross the chasm, companies should focus on a specific niche market within the early majority and provide a whole product solution that addresses their specific needs.
• Bowling Pin Strategy: After dominating a niche, companies can leverage that success to target adjacent markets, like knocking down bowling pins.   
• Importance of References: The early majority relies heavily on references from other pragmatists. Securing satisfied customers in the target niche is crucial.   
• Understanding Different Buyer Psychographics: Each adopter group has different motivations, risk tolerances, and expectations. Marketing and sales efforts need to be tailored accordingly.

OR

C. Write Short notes (any 3)                (15)

1. Types of Integration.

Integration refers to the combination of different elements or entities into a unified whole. In a business context, it commonly refers to the merging or acquisition of companies, or the coordination of different business functions or systems. Here's a brief overview of common types:   

1. Horizontal Integration: This involves combining with competitors in the same industry and at the same stage of production. The goal is often to increase market share, reduce competition, and achieve economies of scale.   

2. Vertical Integration: This involves integrating different stages of the supply chain. 

Backward Integration: Acquiring or merging with suppliers to gain more control over raw materials or inputs. 

Forward Integration: Acquiring or merging with distributors or retailers to gain more control over the distribution of finished goods. The aim is often to improve efficiency, reduce costs, and enhance control over the value chain.   

3. Conglomerate Integration: This involves combining with companies in unrelated industries. The primary motive is often diversification to reduce risk and potentially leverage synergies across different markets.   

4. Functional Integration: This refers to the coordination and collaboration between different departments or functional areas within the same organization (e.g., marketing, sales, production). Effective functional integration is crucial for smooth operations and achieving organizational goals.   

5. Systems Integration: This involves connecting different software applications, data sources, and IT systems to work together seamlessly. This is increasingly important for improving data flow, automation, and overall efficiency in modern businesses.  

 

2. Target compatibility

Target compatibility, in a broad sense, refers to the degree to which a product, service, or message is suitable and effective for its intended target audience. It assesses how well the offering aligns with the needs, preferences, characteristics, and behaviors of the specific group it aims to reach.

High target compatibility implies a strong fit, leading to:

• Increased engagement: The target audience is more likely to pay attention, be interested, and interact with the offering.
• Higher adoption rates: The target audience is more inclined to purchase or utilize the product or service.   
• Effective communication: Marketing messages resonate more strongly and are better understood by the intended recipients.
• Stronger brand connection: The target audience feels understood and valued by the brand.

Conversely, low target compatibility can result in wasted resources, poor market reception, and failure to achieve desired outcomes.

Assessing target compatibility involves understanding the target audience through research and analysis, and then tailoring the product, service, and communication strategies accordingly. Key considerations include demographics, psychographics, needs, pain points, values, and media consumption habits. Ensuring target compatibility is crucial for successful product development, marketing, and overall business strategy.

3. Brand Equity

Brand equity represents the added value a brand name lends to a product or service beyond its functional benefits. It's the intangible asset stemming from positive consumer perceptions, associations, and experiences with a brand over time.   

High brand equity translates to:

• Premium Pricing: Customers are often willing to pay more for a well-regarded brand.   
• Increased Customer Loyalty: Strong brands foster deeper connections and repeat purchases.
• Easier Brand Extensions: Introducing new products under a trusted brand name has a higher chance of success.   
• Greater Trade Leverage: Retailers are more likely to stock and promote brands with strong consumer demand.   
• Enhanced Resilience: Established brands can better withstand competitive pressures and economic downturns.   

Brand equity is built through consistent delivery of value, effective marketing, positive customer experiences, and strong brand messaging. It's a valuable asset that companies actively strive to cultivate and protect. Measuring brand equity often involves assessing brand awareness, brand loyalty, perceived quality, and brand associations.

4. Top-down business model generation

A top-down business model generation approach starts with a broad, often macro-level, analysis of the market, industry trends, and potential opportunities. From this high-level perspective, the process gradually narrows down to identify specific customer segments, value propositions, and ultimately, a viable business model.

Think of it like a funnel: you begin with a wide scope, considering numerous possibilities, and then filter and refine these ideas based on strategic fit, market attractiveness, and feasibility. This approach is often employed by established companies looking to innovate or expand into new markets, leveraging their existing resources and capabilities. It can also be useful when a strong technological innovation or a significant market shift presents a clear top-level opportunity. While potentially strategic and well-aligned with overarching goals, it can sometimes risk overlooking unmet customer needs or grassroots innovations.

5 Monetary incentives for customers

Monetary incentives for customers are financial rewards offered to encourage specific purchasing behaviors or to build customer loyalty. These incentives provide tangible value, directly impacting a customer's spending power and perceived benefit. Common examples include:   

• Discounts and Coupons: Offering a percentage off the purchase price or a fixed amount of savings.   
• Cashback Offers: Providing a percentage of the purchase amount back to the customer after the transaction.   
• Rebates: Allowing customers to claim a portion of their money back after purchasing a product.   
• Loyalty Points: Awarding points for purchases that can be accumulated and redeemed for discounts, free items, or other rewards.   
• Gift Cards: Providing pre-loaded cards that can be used for future purchases.   
• Buy-One-Get-One (BOGO) Deals: Offering a free or discounted item when another is purchased.   
• Free Shipping: Waiving shipping costs to reduce the overall expense for the customer.