MB0046 Spring Drive 2012 Solved

7/30/2019 MB0046 Spring Drive 2012 Solved

1/19

MB0046 - SET 1

Q.1 Explain the various stages involved in new product development

In business and engineering, new product development (NPD) is the term used to describethe complete process of bringing a new product to market. A product is a set of benefits

offered for exchange and can be tangible (that is, something physical you can touch) or

intangible (like a service, experience, or belief). There are two parallel paths involved in the

NPD process: one involves the idea generation, product design and detail engineering; the

other involves market research and marketing analysis. Companies typically see new product

development as the first stage in generating and commercializing new products within the

overall strategic process ofproduct life cycle management used to maintain or grow theirmarket share

STAGES ARE:

1. Idea Generation is often called the "fuzzy front end" of the NPD process

Ideas for new products can be obtained from basic research using a SWOT

analysis(Strengths, Weaknesses, Opportunities & Threats), Market and consumer

trends, company'sR&D department, competitors, focus groups, employees,

salespeople, corporate spies, trade shows, or Ethnographic discovery methods(searching for user patterns and habits) may also be used to get an insight into

new product lines or product features.

Lots of ideas are being generated about the new product. Out of these ideas

many ideas are being implemented. The ideas use to generate in many forms and

their generating places are also various. Many reasons are responsible for

generation of an idea.

Idea Generation or Brainstorming of new product, service, or store concepts -

idea generation techniques can begin when you have done your OPPORTUNITY

ANALYSIS to support your ideas in the Idea Screening Phase (shown in the next

development step).

2. Idea Screening

The object is to eliminate unsound concepts prior to devoting resources to

them.

The screeners should ask several questions:
http://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Engineeringhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Product_designhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Product_life_cycle_managementhttp://en.wikipedia.org/wiki/SWOT_analysishttp://en.wikipedia.org/wiki/SWOT_analysishttp://en.wikipedia.org/wiki/R%26Dhttp://en.wikipedia.org/wiki/R%26Dhttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Engineeringhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Product_designhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Product_life_cycle_managementhttp://en.wikipedia.org/wiki/SWOT_analysishttp://en.wikipedia.org/wiki/SWOT_analysishttp://en.wikipedia.org/wiki/R%26D


2/19

Will the customer in the target marketbenefit from the product?

What is the size and growth forecasts of the market segment/target

market?

What is the current or expected competitive pressure for the product

idea?

What are the industry sales and market trends the product idea is based

on?

Is it technically feasible to manufacture the product?

Will the product be profitable when manufactured and delivered to the

customer at the target price?

3. Concept Development and Testing

Develop the marketing and engineering details

Investigate intellectual propertyissues and search patentdata bases

Who is the target market and who is the decision maker in the

purchasing process?

What product features must the product incorporate?

What benefits will the product provide?

How will consumers react to the product?

How will the product be produced most cost effectively?

Prove feasibility through virtual computer aided rendering, and rapid

prototyping

What will it cost to produce it?

Testing the Concept by asking a sample of prospective customers what they

think of the idea. Usually via Choice Modelling.

4. Business Analysis

Estimate likely selling price based upon competition and customer feedback

Estimate sales volume based upon size of market and such tools as the Fourt-

Woodlock equation

Estimate profitability and break-even point

5. Beta Testing and Market Testing

Produce a physical prototype or mock-up

Test the product (and its packaging) in typical usage situations

Conduct focus group customer interviews or introduce at trade show

Make adjustments where necessary
http://en.wikipedia.org/wiki/Target_markethttp://en.wikipedia.org/wiki/Intellectual_propertyhttp://en.wikipedia.org/wiki/Patenthttp://en.wikipedia.org/wiki/Concept_testinghttp://en.wikipedia.org/wiki/Concept_testinghttp://en.wikipedia.org/wiki/Choice_Modellinghttp://en.wikipedia.org/wiki/Fourt-Woodlock_equationhttp://en.wikipedia.org/wiki/Fourt-Woodlock_equationhttp://en.wikipedia.org/wiki/Packaginghttp://en.wikipedia.org/wiki/Target_markethttp://en.wikipedia.org/wiki/Intellectual_propertyhttp://en.wikipedia.org/wiki/Patenthttp://en.wikipedia.org/wiki/Concept_testinghttp://en.wikipedia.org/wiki/Choice_Modellinghttp://en.wikipedia.org/wiki/Fourt-Woodlock_equationhttp://en.wikipedia.org/wiki/Fourt-Woodlock_equationhttp://en.wikipedia.org/wiki/Packaging


3/19

Produce an initial run of the product and sell it in a test market area to

determine customer acceptance

6. Technical Implementation

New program initiation

Finalize Quality management system

Resource estimation

Requirement publication

Publish technical communications such as data sheets

Engineering operations planning

Department scheduling

Supplier collaboration

Logistics plan

Resource plan publication

Program review and monitoring

Contingencies - what-if planning

7. Commercialization (often considered post-NPD)

Launch the product

Produce and place advertisements and otherpromotions

Fill the distribution pipeline with product

Critical path analysis is most useful at this stage

8. New Product Pricing

Impact of new product on the entire product portfolio

Value Analysis (internal & external)

Competition and alternative competitive technologies

Differing value segments (price, value, and need)

Product Costs (fixed & variable)

Forecast of unit volumes, revenue, and profit

Q.2 Discuss the importance of SWOT analysis to develop effective marketing mix.

A tool used by organisations to help the firm establish its Strengths, Weaknesses,Opportunities and Threats (SWOT). A SWOT analysis is used as a framework to help the firmdevelop its overall corporate, marketing, or product strategies. Note:Strengths andWeaknesses are internal factors which are controllable by the organisation.
http://en.wikipedia.org/wiki/Quality_management_systemhttp://en.wikipedia.org/wiki/Factors_of_productionhttp://en.wikipedia.org/wiki/Technical_communicationhttp://en.wikipedia.org/wiki/Data_sheethttp://en.wikipedia.org/wiki/Engineeringhttp://en.wikipedia.org/wiki/Logisticshttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Promotion_(marketing)http://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Critical_path_analysishttp://en.wikipedia.org/wiki/Quality_management_systemhttp://en.wikipedia.org/wiki/Factors_of_productionhttp://en.wikipedia.org/wiki/Technical_communicationhttp://en.wikipedia.org/wiki/Data_sheethttp://en.wikipedia.org/wiki/Engineeringhttp://en.wikipedia.org/wiki/Logisticshttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Promotion_(marketing)http://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Critical_path_analysis


4/19

Opportunities & threats are external factors which are uncontrollable by theorganisation.

Strength examples could include:

A strong brand name. Market share. Good reputation. Expertise and skill.

Weaknesses could include:

Low or no market share. No brand loyalty. Lack of experience.

Opportunities could include: A growing market. Increased consumer spending. Selling internationally. Changes in society beneficial to your company.

Threats could include:

Competitors Government policy eg taxation, laws.

Changes in society not beneficial to your company.

A SWOT analysis is an excellent tool to use if the organisation wants to take a step back andassess the situation they are in. Issues raised from the analysis are then used to assist theorganisation in developing their marketing mix strategy. A SWOT analysis must form the partof any prudent marketing strategy.

Q.3 Briefly explain the major external and uncontrollable factors that influence an

organization decision making, performance and strategies


5/19

Major external and uncontrollable factors that influence an organisation's decision making,

and affect its performance and strategies, factors outside and enterprises control.

These factors include the economic, demographics, legal, political, and social conditions,

technological changes, and natural forces.

7.1. Social and demographic environment

is concerned with society as a whole; it covers health, media, education, minorities, women,

organised labour, legal system and demographics.

The biggest challenge to firms is the society's changing demands.

7.1.1 Health

As defined by World Health Organization (WHO), it is a "State of complete physical, mental,

and social well being, and not merely the absence of disease or infirmity". Health is a

dynamic condition resulting from a body's constant adjustment and adaptation in response tostresses and changes in the environment for maintaining an inner equilibrium called

homeostasis.

My aim is not to discuss health but the impact it has on organisations.

Example on how changes in social environment can affect a business

Extract from bbccouk


6/19

'It's our human right to smoke'

By Tom Warren

BBC News, Birmingham

Takings at Stechford Working Men's Club have slumped by 20,000 since the smoking ban

came into force. Just before July last year members at the long established Birmingham club

began working hard to improve the venue to try to retain trade from smokers. They painted

the walls, laid new carpets and installed a partially covered smoking shelter equipped with

heaters. But since new smoking laws came into force across England, smokers have

deserted the club in droves, preferring to light up at home. 'Desperate' situation

Treasurer Ray Guest, who has been a member for 23 years, said nothing had prepared the

club for the huge drop in trade which he blames directly on the ban ban.

7.1.2 Media

Communication channels through which news, entertainment, education, data, or promotional

messages are disseminated. Media includes every broadcasting and narrowcasting medium

such as newspapers, magazines, TV, radio, billboards, direct mail, telephone, fax, and

internet.

Media usageMedia (the plural of "medium") is a term referring to those organized means of dissemination

of fact, opinion, entertainment, and other information, such as newspapers, magazines, out-

of-home advertising, cinema films, radio, television, the World Wide Web, books, CDs, DVDs,

videocassettes, video games and other forms of publishing.

Next Page Literacy

Fundamentals of Business

7.1.3 Literacy

The traditional definition of literacy is considered to be the ability to read and write, (basic

literacy) or the ability to use language to read, write, listen, and speak. In modern contexts, is

more of a (functional literacy), the word refers to reading and writing at a level adequate for

communication, or at a level that lets one understand and communicate ideas in a literate

society, so as to take part in that society. The United Nations Educational, Scientific and

Cultural Organization (UNESCO) has drafted the following definition: "Literacy is the ability to

identify, understand, interpret, create, communicate and compute, using printed and written
http://www.history-society.com/literacy.htmlhttp://www.history-society.com/literacy.htmlhttp://www.history-society.com/literacy.htmlhttp://www.history-society.com/literacy.html


7/19

materials associated with varying contexts. Literacy involves a continuous learning to enable

an individual to achieve his or her goals, to develop his or her knowledge and potential, and

to participate fully in the wider society".

Basically, someone who is well educated in one language and go to work at another country,

cant communicate in the language of a host county, is functionally illiterate.

For example In UK, there are many educated and experienced people from EasternEuropean countries like Poland, Czech Republic but cant speak English, as a result they end

up doing menial jobs.

Knowledge capital The introduction of the term is explained and justified by the uniquecharacteristics of knowledge. Unlike physical labour (and the other factors of production),

knowledge is:

Expandable and self generating with use: as doctors get more experience; their knowledgebase will increase, as will their endowment of human capital. The economics of scarcity is

replaced by the economics of self generation.

Transportable and shareable: knowledge is easily moved and shared. This transfer doesnot prevent its use by the original holder. However, the transfer of knowledge may reduce its

scarcity value to its original possessor.

Human capital refers to the stock of productive skills and technical knowledge embodied in

labour. Labour competences are what make a nation more competitive and innovative.

Q.4 Discuss the potential benefits associated with MIS.

According to Kenneth C. Laudon and Jane Price Laudon in their book ManagementInformation Systems: A Contemporary Perspective, an information system is "a set ofprocedures that collects (or retrieves), processes, stores, and disseminates information tosupport decision making and control." In most cases, information systems are formal,computerbased systems that play an integral role in organizations. Although informationsystems are computerbased, it is important to note that any old computer or softwareprogram is not necessarily an information system. "Electronic computers and related software

programs are the technical foundation, the tools and materials, of modern informationsystems, " Laudon and Laudon wrote. "Understanding information systems, however,requires one to understand the problems they are designed to solve, the architectural anddesign solutions, and the organizational processes that lead to these solutions."

An MIS provides the following advantages.


8/19

1. It Facilitates planning : MIS improves the quality of plants by providing relevant informationfor sound decision making . Due to increase in the size and complexity of organizations,managers have lost personal contact with the scene of operations.

2. In Minimizes information overload : MIS change the larger amount of data in to

summarized form and there by avoids the confusion which may arise when managers areflooded with detailed facts.

3. MIS Encourages Decentralization : Decentralization of authority is possibly when there is asystem for monitoring operations at lower levels. MIS is successfully used for measuringperformance and making necessary change in the organizational plans and procedures.

4. It brings Co ordination : MIS facilities integration of specialized activities by keeping eachdepartment aware of the problem and requirements of other departments. It connects alldecision centers in the organization .

5. It makes control easier : MIS serves as a link between managerial planning and control. Itimproves the ability of management to evaluate and improve performance . The usedcomputers has increased the data processing and storage capabilities and reduced the cost .

6. MIS assembles, process , stores , Retrieves , evaluates and Disseminates theinformation .

Q.5 Describe five interdependent levels of basic human needs (motivators) aspropounded by Abraham Maslow

Management > Maslow's Hierarchy

Maslow's Hierarchy of Needs

If motivation is driven by the existence of unsatisfied needs, then it is worthwhile for amanager to understand which needs are the more important for individual employees. In this

regard, Abraham Maslow developed a model in which basic, low-level needs such asphysiological requirements and safety must be satisfied before higher-level needs such asself-fulfillment are pursued. In this hierarchical model, when a need is mostly satisfied it nolonger motivates and the next higher need takes its place. Maslow's hierarchy of needs isshown in the following diagram:
http://www.netmba.com/mgmt/http://www.netmba.com/mgmt/


9/19

Maslow's Hierarchy of Needs

Self-Actualization

Esteem Needs

Social Needs

Safety Needs

Physiological Needs

Physiological Needs

Physiological needs are those required to sustain life, such as:

air water nourishment sleep

According to Maslow's theory, if such needs are not satisfied then one's motivation will arisefrom the quest to satisfy them. Higher needs such as social needs and esteem are not feltuntil one has met the needs basic to one's bodily functioning.

Safety

Once physiological needs are met, one's attention turns to safety and security in order to befree from the threat of physical and emotional harm. Such needs might be fulfilled by:

Living in a safe area Medical insurance Job security Financial reserves

According to Maslow's hierarchy, if a person feels that he or she is in harm's way, higherneeds will not receive much attention.


10/19

Social Needs

Once a person has met the lower level physiological and safety needs, higher level needsbecome important, the first of which are social needs. Social needs are those related tointeraction with other people and may include:

Need for friends Need for belonging Need to give and receive love

Esteem

Once a person feels a sense of "belonging", the need to feel important arises. Esteem needsmay be classified as internal or external. Internal esteem needs are those related to self-esteem such as self respect and achievement. External esteem needs are those such associal status and recognition. Some esteem needs are:

Self-respect Achievement Attention Recognition Reputation

Maslow later refined his model to include a level between esteem needs and self-actualization: the need for knowledge and aesthetics.

Self-Actualization

Self-actualization is the summit of Maslow's hierarchy of needs. It is the quest of reachingone's full potential as a person. Unlike lower level needs, this need is never fully satisfied; asone grows psychologically there are always new opportunities to continue to grow.

Self-actualized people tend to have needs such as:

Truth Justice Wisdom Meaning

Self-actualized persons have frequent occurrences ofpeak experiences, which are energizedmoments of profound happiness and harmony. According to Maslow, only a small percentageof the population reaches the level of self-actualization.

Q.6 List the important differences between Consumer market and business markets


11/19

Business Marketing is the practice of individuals, or organizations, including commercialbusinesses, governments and institutions, facilitating the sale of their products or services to

other companies or organizations that in turn resell them, use them as components in

products or services they offer, or use them to support their operations. Also known

as industrial marketing, business marketing is also called business-to-business marketing, or

B2B marketing, for short. (Note that while marketing to government entities shares some ofthe same dynamics of organizational marketing, B2G Marketing is meaningfully different.)

Business marketing vs. consumer marketingAlthough on the surface the differences between business and consumer marketing may

seem obvious, there are more subtle distinctions between the two with substantial

ramifications. Dwyer and Tanner (2006) note that business marketing generally entails

shorter and more direct channels of distribution.

While consumer marketing is aimed at large demographic groups through mass media and

retailers, the negotiation process between the buyer and seller is more personal in business

marketing. According to Hutt and Speh (2001), most business marketers commit only a small

part of their promotional budgets to advertising, and that is usually through direct mail effortsand trade journals. While that advertising is limited, it often helps the business marketer set

up successful sales calls.

Marketing to a business trying to make a profit (Business-to-Business marketing) as opposed

to an individual for personal use (Business-to-Consumer, or B2C marketing) is similar in

terms of the fundamental principals of marketing. In B2C, B2B and B2G marketing situations,

the marketer must always:

successfully match the product/service strengths with the needs of a definable target

market;

position and price to align the product/service with its market, often an intricate

balance; and communicate and sell it in the fashion that demonstrates its value effectively to the

target market.

MB0046 SET 2

Q.1 what do you mean by marketing functions? Briefly explain the important marketingfunctions.


12/19

A:

The delivery of goods and services from producers to their ultimate consumers or

users includes many different activities. These different activities are known as marketing

functions. Different thinkers have described these functions in different ways. Some of the

most important functions of marketing are briefly discussed below:

Marketing Research and Information Management:

Marketers need to take decisions scientifically. Marketing research function is

concerned with gathering, analyzing and interpreting data in a systematic and scientific

manner. The types of market information could be analysis of market size and characteristics,

consumer tastes and preferences and changes in them from time to time, channels ofdistribution and communication and their effectiveness, economic, social, political and

technological environment and changes therein. A company can procure such information

from specialized market research agencies, government or can decide to collect themselves.

Advertising and Sales Promotion:

Advertising is a mass media tool used to inform, persuade or remind customers about

products or services. It is an impersonal form of communication targeted at a chosen group

through paid space or time.

Sales Promotion is a short-term incentive given to customers or intermediaries to

promote sales. It supplements advertising and personal selling and can be used at the time of

launching a new product or even during its maturity period.

Product Planning and Management:


13/19

A Marketer should identify the needs and wants of consumers, develop suitable

products / services and make them available. Marketer is also required to maintain the

product and its variations in size, weight, package and price range according to the changing

needs and requirements of his customers. Information available through Market Research

helps product management in taking appropriate decisions while planning the marketing

efforts.

Selling:

This function of marketing is concerned with transferring of products to the customer.

An important part of this function is organizing sales force and managing their activities.

Sales force management includes recruitment, training, supervision, compensation and

evaluation of salesmen. They need to be assigned targets and territories where they can

operate. The salesmen interact with prospective purchasers face-to-face in order to sell thegoods. The purchaser may be end customer or an intermediary, such as a retailer or a

dealer.

Physical Distribution:

Moving and handling of products from factory to consumers come under this function.

Order processing, inventory, management, warehousing and transportation are the key

activities in the physical distribution system.

Pricing:

This is perhaps the most important decision taken by marketer, as it is the only

revenue fetching function and success and failure of the product may depend upon this

decision. Therefore, the decision regarding how much to charge should be taken such that

the price is acceptable to the prospective buyers and at the same time fetches profits for the

company. While deciding on the price, the factors to be considered are competition,

competitive prices, company s marketing policy, government policy, and the buying capacity

of target market etc.


14/19

Q.2 Define the term Brand Equity ? Discuss the components of Brand Equity.

A:

Brand equity is set of assets linked to a brands name and symbol that adds value to

the product or service and/or that firm s customer.

Components of brand equity:

Brand Loyalty:Is consumer's commitment to repurchase the brand and can be demonstrated by

repeated buying of a product or service or other positive behaviors such as word of mouth

advocacy. True brand loyalty implies that the consumer is willing, occasionally at least, to putaside their own desires in the interest of the brand. This will help organization to reduce the

promotion cost. For example, many girls in India use only Ponds products, though

competitors products like Fa, Spinz, Cuticura, and Mysore Sandal are present in the market

and vice versa.

Brand Awareness:The number of customers exposed to the brand name. Higher the brand awareness,

higher will be the brand equity. Organizations put all the effort in the introduction stage of the

product to create awareness among the customers. For example, Xerox Company has huge

brand awareness since photocopier machines were introduced by this company and even

today photocopies are referred as Xerox copies.

Perceived Quality:The customer perception about the actual quality level of the product. For example,

when a customer purchases Levis jeans he knows that it indicates quality even though there

are several cheaper brands of jeans available in the market.

Brand Associations:The attribute of the brand that customer associates with his/ her belief. A person may

associate the brand for power, strength or protectiveness. For example, a customer may

associate Nike brand not just for sports shoes but also any accessory associated with sports.

So, for him, Nike represents sports.


15/19

Q.3 Why are marketing channels indispensable? List the functions of marketingchannels.

A:

Marketing channels are a set of independent organizations comprising of the

marketing intermediaries who are involved in the distribution of the goods or services from

the factory to the consumption points at the right time or even before the time.

Functions of marketing channels:

Helps in Physical distribution: Transporting goods and storing them in the assigned

warehouses or godowns.

Promotes Communication: Marketing intermediaries promote the companysproducts. Here channel member provides the information regarding the products and

pushes it to the customers.

Provides Information: Retailers and wholesalers collect the information or feedbacksfrom the customers and provide the same to the company or manufacturer.

Plays a key role in Title transforming: Marketing intermediaries purchase the goodsfrom the company and transform the title of goods or ownership to the next channel

intermediary or customer.

Supports Relationship management: Here marketing intermediaries try tounderstand the needs of consumers, try to match his needs and satisfy them.

Q.4.Explain the different methods which allows a media planner to decide budget

allocation

A:

Media vehicle selection, number of insertions and message structure depend on the

budget allotted for the communication program. A popular channel may charge more for

advertisement but organization gets better viewership. A newspaper having high circulation


16/19

charges premium for the advertisement but all the organization may not have enough

budgets to support such campaign. Hence marketer would like to decide what is the budget

for the communication program? And how shall it be allotted optimally? There are four

different methods on which a media planner decides the allocation of advertisement budget.

Affordable method:This method is used by small companies who don t have enough communication

budgets. In this method company allots the fixed amount for the communication program.

The advantage of this method is company can have better control over the spending on the

communication. The disadvantage is if sales require higher communication effort, company is

not in a position to allocate the budget.

Percentage of sales method:In this method company allots the budget on the basis of total sales forecasted. This is

the simplest method. Marketer can have better control over the budget and also have

flexibility to allocate the budget.

Follow the Competitor method:The Company sets its promotion budget on the basis of competitors advertising effort.

Here company closely monitors the developments of the competitors communication

program and study the industry trends in communication budget prior to setting up

communication budget.

Objective and task method:The procedure involved in estimating the advertisement budget by this method are

First, Objectives are set for the communication programs. Second, identifying the task to be

performed to achieve the objective and third, estimating the cost of achieving these

objectives.

Q.5 Define the term direct marketing Explain the different methods adopted for directmarketing

A:


17/19

When the company or organization is involved in marketing activities (usually selling

products) without the use of any intervening media or channel, then it is called as Direct

Marketing. The company directly sells its products to the final consumer and the consumer is

expected to respond immediately or at the earliest. Direct marketing is sometimes called as

B2C marketing for example, direct factory shoe sale. Following are the methods of Direct

Marketing:

Direct mail:

It is the most common method used in direct marketing, it involves sending postal

mails to the consumers address and consumers maybe randomly chosen or specifically

selected as targets. For example, credit card applications forms sent by banks, travel guides

or manuals sent by tour operators, free trial packs of products sent by companies,

subscriptions offers for magazines etc.

Telephone marketing:

Telephone marketing is used to sell the product directly to consumer. The growth of

BPOs in India fuelled the development of telephone marketing. In the case of BPOs, two

types of verticals exist. They are inbound call center and outbound call center. In case of

inbound call center, customer is given a toll free number for enquiry and executives try to sell

the product to such customers. In out bound call center employees call the customers and

sell the products. The expansion of Indian telecommunication industry and its cheapest tariffs

in the world attracted domestic sellers to use this type of channel.

Catalogue marketing:

According to Philip Kotler, catalogue marketing is direct marketing through print, video

or electronic catalogues that are mailed to select customers, made available in stores or

presented online. The growth of catalogue marketing in India is in a nascent stage. The

notable example in this type of marketing worldwide is J.C. Penny.

Kiosk marketing:

Organizations spreads the information and keep ordering machines called kiosks in

the shopping malls and other places. For example, Ambi Pur a perfume company recently


18/19

organized a kiosk related marketing campaign in the Nirmal life style Mumbai. Company used

inflatable as shown in the pictures to attract the small boys.

Parents who came along with their children stopped at Kiosk and got the information

from the company. The objective of campaign was to create awareness about the product

among the target customers.

Online marketing:

Marketing the organizations product on the virtual medium using the company

websites as selling point or ordering point for the consumers. Sometimes companies use e-

mails to offer their products and make a sale to the prospective consumers or even existing

consumers.

Q.6 List the important differences between International marketing and Domesticmarketing.

A:

International marketing is defined as The performance of business activities designed

to plan, price, promote and direct the companys flow of goods and services to consumers or

users in more than one nation for a profit.

A company that wants to sell their product in other than domestic market should

understand the environmental factors, consumer behavior, market forces and other

characters relevant to the international market. After understanding the definition, several

questions may arise in your mind like why marketer should go to the international market?

And what is the difference between international marketing and domestic marketing? As we

discussed in the introduction part, companies enter into the international market to tap the

potential, to support the customer requirements or to avoid the unprofitable domestic market.

The differences between domestic marketing and international marketing are listed below:


19/19

Characteristics International Marketing Domestic MarketingCulture Multi culture Single culture and in some

cases multi culture

Data accessibility Very difficult Easy

Data reliability Very Low High

Control Difficult Relatively easyConsumer

preferences

Vary from country to

country

Vary in small extent

Product mix Adaptability required Standardization required

Business operation More than one country Home country only

Currency exposure Required Required only if there is

importing

Documents

MB0046 Spring Drive 2012 Solved