MBA - SEMESTER III Assignment Set -1

Sikkim Manipal D.E.

MB0050 - Research Methodology (Book ID: B1206):-

Q.1. a) Explain the general characteristics of observation. Ans. Observation as a method of data collection has certain characteristics: It is both a physical and a mental activity: The observing eye catches many things that are present. But attention is focused on data that are pertinent to the given study.

Observation is selective: a researcher does not observe anything and everything, but selects the range of things to be observed on the basis of the nature, scope and objectives of his study. For example, suppose a researcher desires to study the causes of

city road accidents and also formulated a tentative hypothesis that accidents are caused by violation of traffic rules and over speeding.

Observation is purposive and not casual: It is made for the specific purpose of noting things relevant to the study. It captures the natural social context in which persons behavior occur. It grasps the significant events and occurrences that affect social relations of the participants.

Observation should be exact and be based on standardized tools of research and such as observation schedule, social metric scale, etc., and precision instruments, if any.

b) What is the utility of observation in Business Research? Ans. Observation is suitable for a variety of research purposes. It may be used for studying: The behavior of human beings in purchasing goods and services lifestyle, customs, and manner, interpersonal relations, group dynamics, crowd behavior, leadership styles, managerial style, other behaviors and actions, The behavior of other living creatures like birds, animal, etc., Physical characteristics of inanimate things like stores, factories, residences, etc., Flow of traffic and parking problems, Movement of materials and products through a plant.

Q.2. a) Briefly explain interviewing techniques in Business Research. Ans. The interview techniques are: Preparation: The interviewing requires some preplanning and preparation. The interviewer should keep the copies of interview schedule/guide (as the case may be) ready to use. He should have the list of names and addresses of respondents, he should regroup them into contiguous groups in terms if location in order to save time and cost in travelling.

Introduction: The investigator is a stranger to the respondents. Therefore, he should be properly introduced to each of the respondents. There is no one appropriate universal mode of introduction. Mode varies according to the type of respondents.

Developing rapport: Before starting the research interview, the interviewer should establish a friendly relationship with the respondent. This is described as rapport. It means establishing a relationship of confidence and understanding between the interviewer and the respondent. It is a skill which depends primarily on the interviewers common sense, experience, sensitivity and keen observation.

Carrying the interview forward: After establishing rapport, the technical task of asking questions from the interview schedule stars. This task requires care, selfrestraint, alertness and ability to listen with understanding, respect and curiosity.

Additional sittings: In the case of qualitative interviews involving longer duration, one single sitting will not do, as it would cause interview weariness. Hence, it is desirable to have two or more sittings with the consent of the respondent.

Recording the interview: It is essential to record responses as the take place. If the note taking is done after the interview, a good deal of relevant information may be lost. Nothing should be made in the schedule under respective question. It should be complete and verbatism. The responses should not be summarized or paraphrased.

Closing the interview: After the interview is over, take leave of the respondent thanking him with a friendly smile. In the case of a qualitative interview of longer duration, select the occasion for departure more carefully.

Editing: At the close of the interview, the interviewer must edit the schedule to check that he has asked all the questions and recorded all the answers and that there is no inconsistency between answers. Abbreviations in recording must be replaced by full words. He must ensure that everything is legible.

b) What are the problems encountered in interview? Ans. Problems that are encounters in an interview are: Inadequate response: According to Kahn and Cannel, there can be partial response, in which the respondent gives a relevant and incomplete answer. There can be nonresponse, when the respondent remains silent or refuses to answer the question. There can be irrelevant response, in which the respondents answer is not relevant to the question asked. There can also be inaccurate response, when the reply is

biased or distorted and the last one is verbalized response problem, which arises in account of respondents failure to understand a question or lack of information necessary for answering it. Interviewers bias: The interviewer is an important cause of response bias. He may resort to cheating by cooking up data without actually interviewing. The interviewers can influence the responses by inappropriate suggestions, word emphasis, tone of voice and question rephrasing. His own attitudes and expectations about what a particular category of respondents may say or think may bias the data.

Non-response: Non-response refers to failure to obtain responses from some sample respondents. There are many sources of non-responses: non-availability, refusal, incapacity and inaccessibility.

Refusal: Some persons may refuse to furnish information because there are illdisposed, or approached at the wrong hour and so on. Although, a hardcore of refusals remains, another try or perhaps another approach may find some of them cooperative.

Inaccessibility: Some respondents may be inaccessible. Some may not be found due to migration and other reasons. Non-responses reduce the effective sample size and its representativeness.

Q.3. a) What are the various steps in processing of data? Ans. Data is an integral part of all business processes. It is the invisible backbone that supports all the operations and activities within a business. Without access to relevant data, businesses would get completely paralyzed. This is because quality data helps formulate effective business strategies and fruitful business decisions. Therefore, the quality of data should be maintained in good condition in order to facilitate smooth business proceedings. In order to enhance business proceedings, data should be made available in all possible forms in order to increase the accessibility of the same. Data processing refers to the process of converting data from one format to another. It transforms plain data into valuable information and information into data. Clients can supply data in a variety of forms, be it .xls sheets, audio devices, or plain printed material. Data processing services take the raw data and process it accordingly to produce sensible information. The various applications of data processing can convert raw data into useful

information that can be used further for business processes. Companies and organizations across the world make use of data processing services in order to facilitate their market research interests. Data consists of facts and figures, based on which important conclusions can be drawn. When companies and organizations have access to useful information, they can utilize it for strategizing powerful business moves that would eventually increase the company revenue and decrease the costs, thus expanding the profit margins. Data processing ensures that the data is presented in a clean and systematic manner and is easy to understand and be used for further purposes. Here are the 5 steps that are included in data processing: Collecting: First step is to collect the raw data which you want to process. From which data do you want information? This is first question before you start. Editing: There is a big difference between data and useful data. While there are huge volumes of data available on the internet, useful data has to be extracted from the huge volumes of the same. Extracting relevant data is one of the core procedures of data processing. When data has been accumulated from various sources, it is edited in order to discard the inappropriate data and retain relevant data. Coding and Classifying: Even after the editing process, the available data is not in any specific order. To make it more sensible and usable for further use, it needs to be aligned into a particular system. The method of coding ensures just that and arranges data in a comprehendible format. The process is also known as netting or bucketing. After the data has been properly arranged and coded, it is entered into the software that performs the eventual cross tabulation. Data entry professionals do the task efficiently. Transcription: After the coding & classifying phase, comes the transcription process. Data transcription refers to the process of thoroughly checking the collected data to ensure optimal quality levels. All the accumulated data is double checked in order to ensure that it contains no inconsistencies and is utterly relevant. Tabulation: This is the final step in data processing. The final product i.e. the data is tabulated and arranged in a systematic format so that it can be further analyzed.

All these processes make up the complete data processing activity which ensures the said data is available for access. b) How is data editing done at the time of recording of data? Ans. Document editing and testing of the data at the time of data recording is done considering the questions in mind:

Do the filters agree or are the data inconsistent? Have missing values been set tot values, which are the same for all research questions? Have variable descriptions been specified? Have labels for variable names and value labels been defined and written?

All editing and cleaning steps are documented, so that, the redefinition of variables or later analytical modification requirements could be easily incorporated into the data sets. Q.4. a) What are the fundamental of frequency distribution? Ans. Variables that are classified according to magnitude or size are often arranged in the form of a frequency table. In constructing this table, it is necessary to determine the number of class intervals to be used and the size of the class intervals. A distinction is usually made between continuous and discrete variable. A continuous variable has an unlimited number of possible values between the lowest and highest with no gaps or breaks. Examples of continuous variable are age, weight, temperature, etc. a discrete variable can have a series of specified values with no possibility of values between these points. Each value of a discrete variable is distinct and separate. Examples of discrete variables are persons (male/female), occupation (salaried, business, profession), car size (800c, 1000cc, 1200cc), etc. In practice, all variables are treated as discrete units, the continuous variables being stated in some discrete unit size according to the needs of a particular situation. For example, length is described in discrete units of millimeters or a tenth of an inch. b) What are the types and general rules for graphical representation of data? Ans. The most commonly used graphic forms may be grouped into the following categories: Line graphs or Charts. Bar charts. Segmental presentations. Scatter plots. Bubble charts. Stock plots. Pictographs. Chesnokov faces.

The general rules to be followed in graphic representations are:

The chart should have a title placed directly above the chart. The title should be clear, concise and simple and should describe the nature of the data presented. Numerical data upon which the chart is based should be presented in accompanying table. The horizontal line measures time or independent variable and the vertical line measures the variable. Measurements proceed from left to right on the horizontal line and from bottom to top on the vertical. Each curve or bar on the chart should be labeled. If there are more than one curves or bar, they should be clearly differentiated from one another by distinct patterns or colors. The zero point should always be represented and the scale intervals should be equal. Graphic forms should be used sparingly. Too many forms detract rather than illuminating the presentation. Graphic forms should follow and not precede the relaxed textual discussion.

Q.5. Strictly speaking, would case studies be considered as scientific research? Why or why not? Ans. Case study is a method of exploring and analyzing the life of a social unit or entity, be it a person, a family, an institution or a community. The aim of case study method is to locate or identify the factors that account for the behavior patterns of a given unit, and its relationship with the environment. The case data are always gathered with a view to attracting the natural history of the social unit, and its relationship with the social factors and forces operative and involved in this surrounding milieu. In short, the social researchers try, by means of the case study method, to understand the complex of factors that are working within a social nit as an integrated totality. Looked at from another angle, the case study serves the purpose similar to the clue-providing function of expert opinion. It is most appropriate when one is trying to find clues and ideas for further research. The major credit for introducing case study method into social investigation goes to Frederick Leplay. Herbert Spencer was the first social philosopher who used case study in comparative studies of different cultures. William Healey used case study in his study of juvenile delinquency. Anthropologists and ethnologists have liberally utilized cast study in the systematic description of primitive cultures. Historians have used this method for portraying some historical character or particular historical period and describing the developments within a national community. Q.6. a) Analyze the case study and descriptive approach to research.

Ans. Case study would depend upon wit, commonsense and imagination of the person doing the case study. The investigator makes p his procedures as he goes along. If the life history has been written in the first person, it must be as complete and coherent as possible. Life histories should have been written for knowledgeable persons. It is advisable to supplement case data by observational, statistical and historical data since these provide standards for assessing the reliability and consistency of the case material. Efforts should be made to ascertain the reliability of life history data through examining the internal consistency of the material. A judicious combination of techniques of data collection is a prerequisite for securing data that are culturally meaningful and scientifically significant. Descriptive study is a fact-finding investigation with adequate interpretation. It is the simplest type of research. It is more specific than an exploratory research. It aims at identifying the various characteristics of a community or institution or problem under study and also aims at a classification of the range of elements comprising the subject matter of study. It contributes to the development of a young science and useful in verifying focal concepts through empirical observation. It can highlight important methodological aspects of data a collection and interpretation. The information obtained may be useful for prediction about areas of social life outside the boundaries of the research. They are valuable in providing facts needed for planning social action program. b) Distinguish between research methods & research methodology. Ans. Research Methods and Research Methodology are two terms that are often confused as one and the same. Strictly speaking they are not so and they show differences between them. One of the primary differences between them is that research methods are the methods by which you conduct research into a subject or a topic. On the other hand research methodology explains the methods by which you may proceed with your research. Research methods involve conduct of experiments, tests, surveys and the like. On the other hand research methodology involves the learning of the various techniques that can be used in the conduct of research and in the conduct of tests, experiments, surveys and critical studies. This is the technical difference between the two terms, namely, research methods and research methodology. In short it can be said that research methods aim at finding solutions to research problems. On the other hand research methodology aims at the employment of the correct procedures to find out solutions. It is thus interesting to note that research methodology paves the way for research methods to be conducted properly. Research methodology is the beginning whereas research methods are the end of any scientific or non-scientific research. Let us take for example a subject or a topic, namely, employment of figures of speech in English literature. In this topic if we are to conduct research, then the research methods that are involved are study of various works of the different poets and the understanding of the employment of figures of speech in their works.

On the other hand research methodology pertaining to the topic mentioned above involves the study about the tools of research, collation of various manuscripts related to the topic, techniques involved in the critical edition of these manuscripts and the like. If the subject into which you conduct a research is a scientific subject or topic then the research methods include experiments, tests, study of various other results of different experiments performed earlier in relation to the topic or the subject and the like. On the other hand research methodology pertaining to the scientific topic involves the techniques regarding how to go about conducting the research, the tools of research, advanced techniques that can be used in the conduct of the experiments and the like. Any student or research candidate is supposed to be good at both research methods and research methodology if he or she is to succeed in his or her attempt at conducting research into a subject.

MB0051 Legal Aspects of Business (Book ID: B1207):-

Q.1. Distinguish between fraud and misrepresentation. Ans. Fraud is generally defined in the law as an intentional misrepresentation of material existing fact made by one person to another with knowledge of its falsity and for the purpose of inducing the other person to act, and upon which the other person relies with resulting injury or damage. Fraud may also be made by an omission or purposeful failure to state material facts, which nondisclosure makes other statements misleading. Misrepresentation means a false statement of fact made by one party to another party, this has the effect of inducing that party into the contract. For example, under certain circumstances, false statements or promises made by a seller of goods regarding the quality or nature of the product that the seller has may constitute misrepresentation. A finding of misrepresentation allows for a remedy of rescission and sometimes damages depending on the type of misrepresentation. Difference between fraud and misinterpretation: In misrepresentation the person making the false statement believes it to be true. In fraud the false statement is person who knows that it is false or he does not care to know whether it is true or false.

There is no intention to deceive the other party when there is misrepresentation of fact. The very purpose of the fraud is to deceive the other party to the contract.

Misrepresentation renders the contract voidable at the option of the party whose consent was obtained by misrepresentation. In the case of fraud the contract is voidable It also gives rise to an independent action in tort for damages.

Misrepresentation is not an offence under Indian penal code and hence not punishable. Fraud, In certain cases is a punishable offence under Indian penal code.

Generally, silence is not fraud except where there is a duty to speak or the relations between parties is fiduciary. Under no circumstances can silence be considered as misrepresentation.

The party complaining of misrepresentation cant avoid the contract if he had the means to discover the truth with ordinary diligence. But in the case of fraud, The

party making a false statement cannot say that the other party had the means to discover the truth with ordinary diligence.

Q.2. What are the remedies for breach of contract? Ans. In addition to the rights of a seller against goods provided, the seller has the following remedies against the buyer personally: Suit for price: Where under a contract of sale the property in the goods gas passed to the buyer and the buyer wrongfully neglects or refuses to pay the price, the seller can sue the buyer for the price of the goods. Where the property in goods has not passed to the buyer, as a rule, the seller cannot file a suit for the price; his only remedy is to claim damages. Suit for damages for non-acceptance: Where the buyer wrongfully neglects or refuses to accept and pay for the goods, the seller may sue him for damages for nonacceptance. Where the property in the goods has not passed to the buyer and the price was not payable without passing of property, the seller can only sue for damages and not for the price. The amount of damages is to be determined in accordance with the provisions laid down in Sec.73 of the Indian Contract Act, 1872. Thus, where there is an available market for the goods prima facie, the difference between the market price and the contract price can be recovered. Suit for interest: When under a contract of sale, the seller tenders the goods to the buyer and the buyer wrongfully refuses or neglects to accept and pay the price, the seller has a further right to claim interest on the amount of the price. In the absence of a contracted to the contrary, the court may award interest at such rate as if thinks fit on the amount of the price. The interest may be calculated from the date of the tender of the goods or from the date on which the price was payable. It is obvious that the unpaid seller can claim interest only when he can recover the price, i.e., if the sellers remedy is to claim damages only them he cannot claim interest. Buyers remedies against seller: The buyer has the following right against the seller for breach of contract: damages for non-delivery, right of recovery of the price, specific performance, suit for breach of condition, suit for breach of warranty, anticipatory breach and recovery of interest.

Q.3. Distinguish between indemnity and guarantee. Ans. The terms indemnity and guarantee are widely used in contract law to describe the nature of a contractual agreement between parties. Indemnities and guarantee agreements are used

in areas such insurance, mortgage agreements, corporate governance between a company and shareholders and in loan agreements. The use and meaning of these two terms is often confused and can be mistranslated by parties to an agreement. It is important to understand their differences and their legal implications. Number of Parties: The contractual agreement arising from an indemnity is made between two parties, that is the indemnifier and the person who receives the indemnity. For example, a life insurance policy is an indemnity between the insurance company and the person buying the policy. A guarantee agreement involves three parties these are: the guarantor, the principal debtor and the principal creditor. For example in taking a student loan, a cosigner promises to pay the debt to the lender if the student defaults on the loan. Nature of Obligations: The nature of obligations in a guarantee agreement is different from that of an indemnity. In an indemnity the indemnifier has an obligation to protect the receiver of the indemnity from loss. In the event of a loss, then the indemnifier will compensate the receiver or principle creditor accordingly. A guarantee agreement obligates a guarantor to pay a certain debt or perform a service on behalf of a principal debtor if the debtor fails to meet his obligations to the creditor.

Sequence of Liability: A guarantee agreement comes secondary to previous obligations agreed upon between the principle creditor and the principle debtor. The guarantee agreement becomes a subsidiary agreement rather than the principle agreement between the parties involved. In an indemnity the contractual liability is primary and does not require the existence of a previous agreement between the two parties. The agreement is independent of any other contracts and obligations.

Relationship between Parties: Unlike a guarantee agreement, an indemnity brings the indemnifier and the principal creditor on the same level. There is a one-on-one interaction between these parties and the liability is concurrent, meaning it is equally shared. A guarantee agreement places more emphasis on the guarantorprincipal creditor relationship and the primary debtor does not necessarily carry equal liability.

Q.4. What is the distinction between cheque and bill of exchange? Ans. A lot of business activities are going on round the clock in all parts of the world. All business activities involve exchange of goods and services. These goods and services are sold for cash or on credit. In daily life, it is impractical to issue Cheques for all the transactions that we carry out and as such we make use of either cash or use our credit cards to make payments

at cinema halls, restaurants or when buying something from the market. But when it comes to receiving payment for the service that we render to our employer or our client, we tend to receive money in the form of Cheques that are cashed when we present them in our banks. It is impractical to give or receive huge sums of cash which is why people prefer to give or receive Cheques. In practice, businessmen make use of documents called negotiable instruments to give and receive money. Cheques and bills of exchange are examples of these negotiable instruments. In this article we will attempt to find out differences between these two types of documents; Cheques and bills of exchange. Bill of exchange is another important type of negotiable instrument that is used to make or receive payments in businesses. Let us understand it through an example. Let us assume Tom has given a loan of $1000 to John. But Tom has to make a payment of $1000 to Roger from whom he has either taken goods or services. If Tom does not have cash, he can issue a document directing John to make a payment of $1000 to Roger whenever Roger demands or after the expiry of a period. This document is referred to as a bill of exchange which can be further transferred. A cheque differs from a bill of exchange in the following respects: Drawee: A cheque is always drawn on a bank or banker while a bill of exchange can be drawn on any person including a banker. Acceptance: A cheque does not require any acceptance, while a bill must be accepted before the drawee can be made liable upon it. Payment: A cheque is payable immediately on demand without any days of grace, but a bill of exchange is normally entitled to three days of grace unless it is payable on demand. Stamp: A bill of exchange must be stamped, whereas a cheque does not require any stamp. Protection: A banker is given statutory protection with regard to payment of cheques in certain circumstances. No such protection is available to the drawee or acceptor of a bill of exchange.

In brief: Cheque vs. Bill of Exchange: While a Cheque can only be drawn on a banker, a bill of exchange can be drawn on any party or individual. There is no need for acceptance in case of a Cheque but a bill of exchange must be accepted before the drawee can be made liable upon it. While there is no grace period in the case of a Cheque and it must be paid immediately by the banker, there is usually a grace period of 2-3 days in the case of a bill of exchange.

 A Cheque is either crossed or uncrossed while there is no such requirement in a bill of exchange. In the case of a bounced Cheque, notice of dishonor is not necessary but it is a must in case of bill of exchange. A Cheque needs no stamp but it is necessary in case of bill of exchange. You can stop payment in case of a Cheque but it is not possible in case of a bill of exchange Q.5. Distinguish between companies limited by shares and companies limited by guarantee. Ans. There are several ways of structuring a company to start a business. Different nomenclatures are adopted for the purpose of taxation and profit sharing. Two such formations are Companies Limited by Shares and Companies Limited by Guarantee that are more prevalent in Britain and Ireland. People are often confused between these two entities and do not know which one they should adopt for their purposes. This article will differentiate between Companies Limited by Shares and Companies Limited by Guarantee by discussing their features and pros and cons. There are both similarities as well as differences in the two types of companies. A company limited by guarantee is lesser known of the two types and is generally formed in case of nonprofit companies. It tends to have members rather than shareholders. The most notable difference between these two entities is that companies limited by shares exist for making profit whereas companies limited by guarantee are non profit making companies. Guarantee companies are formed to provide a specific service to public. These two entities also differ in their articles of association and memorandum as companies limited by shares have very general clauses that give them liberty to engage in any legal trade or business activity. On the other hand, companies limited by guarantee have specific clauses and rules dictating their areas of operation. Prominent example of companies limited by guarantee are charities that have self imposed restrictions on them to assure the donors that their donations are spent according to their wishes and not in a manner that they do not approve. This one point helps companies limited by guarantee to raise funds more easily than companies limited by shares as they can show how they propose to use the money. There are no major differences in the structure of the two types of companies and both Companies Limited by Shares and Companies Limited by Guarantee have at least one director, a secretary and a declarant at the time of coming into existence. Another major difference between Companies Limited by Shares and Companies Limited by Guarantee is the absence of share capital in the case of companies limited by guarantee. There are members and not shareholders in case of a guarantee company where members pledge to contribute a predetermined sum at the time of formation of the company (Pound 1). Guarantee

company structure is mostly used by schools, clubs, churches, research organizations and to purchase freehold property. Q.6. What is the definition of cyber crime? Ans. Cybercrime is criminal activity done using computers and the Internet. This includes anything from downloading illegal music files to stealing millions of dollars from online bank accounts. Cybercrime also includes non-monetary offenses, such as creating and distributing viruses on other computers or posting confidential business information on the Internet. Perhaps the most prominent form of cybercrime is identity theft, in which criminals use the Internet to steal personal information from other users. Two of the most common ways this is done is through phishing and pharming. Both of these methods lure users to fake websites (that appear to be legitimate), where they are asked to enter personal information. This includes login information, such as usernames and passwords, phone numbers, addresses, credit card numbers, bank account numbers, and other information criminals can use to "steal" another person's identity. For this reason, it is smart to always check the URL or Web address of a site to make sure it is legitimate before entering your personal information. Because cybercrime covers such a broad scope of criminal activity, the examples above are only a few of the thousands of crimes that are considered cybercrimes. While computers and the Internet have made our lives easier in many ways, it is unfortunate that people also use these technologies to take advantage of others. Therefore, it is smart to protect yourself by using antivirus and spyware blocking software and being careful where you enter your personal information.

 MK0010 Sales, Distribution and Supply Chain (Book ID: B1220):-

Q.1. List the roles and responsibilities of a sales manager. Ans. Responsibilities of a store manager may include: Human Resources, specifically: recruiting, hiring, training and development, performance management, payroll, and schedule workplace scheduling Store business operations, including managing profit and loss, facility management, safety and security, loss prevention (also called shrink), and banking Product management, including ordering, receiving, price changes, handling damaged products, and returns Team Development, facilitating staff learning and development Problem solving, handling unusual circumstances

The sales manager is the most important person in a sales organization so, all activities are based on his functions and responsibilities. Following are some of the principal duties of a sales manager: Organising sales research, product research and such other research activities. Getting the best output from the sales force under him. Setting and controlling the targets, territories, sales experiences, distribution expenses, etc. Advising the company on various media, sales promotion schemes, etc. Monitoring the companys sales policies. Sales manager as sales coordinator : The sales manager performs the function of a coordinator and ensures that the other departments in the company are well informed of sales activities so that they can produce what is required, when it is required and whether the same can be produced with the existing facilities or it requires changes and so on. The sales manager also carries out coordinating work with the distribution network. Sales manager as controller : Sales manager should act as per the objectives set by the organization and exercise control over his staff so that they may look for advice and may give their best efforts to bring results. He should analyze present condition of the firm, make plans for future and find ways to achieve those plans. Generating profits : Sales department is responsible for the sales of the products at the best available prices in the given circumstances. Salesperson produce volume sales as per targets, and he sell the product

at a price which may generate profit for the company. After all it is positive financial results that add position and power to the sales manager and bring credit to the sales department. Q.2. Compare and contrast the various types of sales organization structures. Ans. Sales organization development refers to the formal, coordinating process of communication, authority and responsibility for sales groups and individuals. An effectively designed sales organization has a framework that enables the organization to serve its customers. Once the sales people know what their responsibilities are and who they report to, they can concentrate on doing their expected jobs to the best of their ability. Thus, a sales manager must recognise and deal with some basic problems faced by organizations, when developing his own sales organization. The sales organization structure can be: Line and staff components : Marketing organizations also feature line and staff components. A line function is a primary activity and a staff function is a supporting activity. In a marketing organization, the selling function is the line component whereas advertising, marketing research, marketing planning, sales training and distributor relations are usually considered staff roles. Although the use of the terms line and staff has been criticized in many quarters, the basic premise behind them remains applicable to marketing organizations. A modern sales force has to receive various types of support in order to accomplish its objectives. Advertising and sales promotional support is needed to precondition the prospect to accept the salespersons presentation; marketing research and sales planning are required because they allow field representatives to concentrate their efforts on the largest potential markets; in-house sales correspondents relieve the field force of activities that would distract them from their basic efforts; and distribution, credit, and maintenance of personnel ensure that the customer is satisfied with the purchase. Second, staff activities report to the line position that they support. Distributor relations, sales planning, sales analysis and sales training are considered to be directly supportive of the field sales effort so these departments report to the General Sales Manager. By contrast, marketing research and advertising are broader functions and they report to the Vice President for Marketing. Formal and informal organizations : Every firm has a formal and an informal organization. The formal organization is a fixed set of rules of intra organization procedure and structure that of the management whereas the informal organization is often developed from the informal relationships existing within the organization. Also called the grapevine, informal organization is basically a communications

pattern that emerges to facilitate the operation of its formal counterpart. Most formal organizations would be totally ineffective if it were not for a supportive informal organization. Informal Communication System in a Marketing Organization : Consider the case of a field salesperson who is responsible for collecting certain competitive information such as prices and trade discounts. If this information were forwarded through the formal organization (Figure 1.5) the data would be so backdated that it would be useless to the management. The informal communication system, however, allows the information to be transmitted directly to the director of marketing research. Similarly, consumer complaints over delays in correcting billing errors can be mitigated when the district sales manager directly contacts the head of accounts. The development of an effective sales organization requires that informal relationships and communication patterns be recognised as being equally useful in accomplishing sales objectives. They should be encouraged to the extent that they improve organizational efficiency. Horizontal and vertical organizations : A sales force can have either a horizontal or a vertical organizational format. This arrangement varies among companies even within the same industry. The other extreme is a horizontal organization, shown in Figure 1.7. Here the number of management levels is reduced appreciably, but the number of managers at any particular level is increased. Instead of two or three district sales managers, there may be seven or eight. Q.3. Critically analyse the role of employment agencies and internal transferring. Ans. Evaluation research across industrialized countries suggests that job search assistance appears to consistently provide satisfactory results. Job search assistance provides the lowest cost interventions, with generally the largest relative payoffs, and appears to be effective for most groups of unemployed persons (Fay, 1996). Clearly, once the initial costs have been covered for the development of Internet- based job seeker databases and other typical services of electronic labour exchanges, the provision of basic job matching services is both low cost and requires little direct intervention by staff. During the current economic crisis, public employment service officials have encouraged job seekers to take advantage of these selfservice options. There has also been an increased interest in less developed countries to develop or enhance their job matching services using information technology. However, when there are fewer jobs available, only the most employable workers are able to find new jobs through these sources alone. As the need for more in-depth services such as career counselling, skills development and assistance in acquiring special equipment to meet job requirements increases, so do the costs of job placement. The time spent in providing

services to each individual job seeker increases during periods of high unemployment because of the need to provide more in-depth information on labour market conditions, alternative career paths, and sources of skills development which might be available. This also has implications for the speed or the cost of providing services, depending on whether the public employment service is able to hire additional employment staff. There are, however, limits to what a public employment service can achieve when the central problem is one of inadequate effective demand in the economy. The internal transfer process requires a student to apply to the college to which they want to transfer, and each college has specific academic guidelines that applicants must meet to be eligible for internal transfer. Regardless of the reason for internal transfer, there exists a streamlined process to aid students in identifying the target college/school and preparing themselves for transfer. It is the transfer applicants responsibility to familiarize him- or herself with the regulations of the College of Arts and Sciences prior to applying to transfer. Applicants should especially take note of the rules pertaining to acceleration (graduating early), courses not eligible for credit, courses that have been repeated, declaring a major, and residency requirements. Internal Transfer to the College of Arts and Sciences: Internal transfers must spend four semesters on campus as an Arts and Sciences student and complete the Colleges major and distribution requirements in order to graduate. College requirements include 120 overall credits, 100 A&S credits, and 100 overall credits at C or above. Please consult the Arts and Sciences Advising website or the Courses of Study for detailed information on the Colleges degree requirements. You may find the Requirements Worksheet useful as you plan out how you will complete the degree. Ideally, applicants should be in good standing in their home college with a cumulative GPA of 2.7, and must earn at least a 2.7 in the semester they apply. Freshmen are eligible to apply at the end of their first semester and must have GPA of at least 3.0 in their first semester. We will review the high school records of all first semester freshman applicants to ensure appropriate strength in their preparation for the liberal arts. Because of the Colleges four-semester residency requirement, juniors are not eligible for internal transfer if they have not applied by the end of their sophomore year. Students transferring into the College as juniors cannot participate in Study Abroad or other off-campus programs during the fall and spring semester because of the on-campus residency requirement. The College of Arts and Sciences requires that students gain acceptance into at least one major by the end of their sophomore year. If you are applying as a second-semester sophomore, you must submit documentation that you have been accepted (or provisionally accepted) into an Arts and Sciences major. No decision will be rendered without this documentation. Q.4. What are the motivational factors used to motivate sales team? Ans. (i) Monetary or Financial Incentives:

Monetary incentives are offered in terms of money. Such incentives provide more cash or purchasing power to employees. Monetary incentives are extremely attractive to employees (particularly those working at lower levels) as they get the benefit quickly and in concrete terms. At the higher levels of management, non-monetary incentives are more important than monetary incentives. Workers prefer monetary incentives as compared to non-monetary incentives. Managements also offer liberal monetary incentives to all categories of workers. Monetary incentives may be further classified as following : Individual Monetary Incentives : The benefit of individual monetary incentive is available to concerned worker only. For example, F. W. Taylor suggested differential piece rate system which offers different wage rates to different workers as per their production efficiency. Different incentive wage plans are the examples of individual monetary incentives as the benefit is offered individually to every worker. Here, a worker is paid as per his efficiency, productivity or as per the production given by him. Efficient/sincere workers give more production and get higher reward in terms of wage payment. Group Monetary Incentives : In the group monetary incentives, the monetary benefit is not given individually but to a group of workers or to all workers in the Organisation. Workers have to work jointly/collectively as a team in order to secure the benefits of group monetary incentives. Bonus payment, pension, P.F, production/productivity bonus, profit sharing, etc. are the examples of group monetary incentives. For the employer/management, group incentives are more important as they offer many benefits to the management. Job security and job enrichment : Job security is useful for the motivation of employees. Such security keeps the employee away from the tension of becoming unemployed. Job enrichment provides an opportunity for greater recognition and advancement. Job enrichment refers to redesign of jobs. Fair treatment to employees : Employer should give attention to the needs, difficulties and grievances of employees. Small work groups and effective communication are useful for solving the problems of workers. Employees must be given decent treatment. They will be co-operative only when they are treated with sympathy and love, affection and dignity. Employees should also be given help in personal matters. Recognition of good work : Recognition of good work at an appropriate time gives encouragement to employees to show better performance in future. As an appreciation of good work, prizes, rewards, promotions, etc. should be given. Encouragement to self-development and career development: Employees should be given varied training facilities. Training facilitates self-development and also provides opportunities for career development. Every employee has a desire to grow, develop and rise higher. This desire should be exploited fully for motivating employees. For this, training as well as management development programmes should be introduced. Delegation of authority : Due to delegation of authority, a subordinate employee feels that superior has faith in him and also in his ability to use authority in a proper manner.

(ii) Non-monetary Incentives for Employee Motivation:

Employees get mental satisfaction when authority is given to them. They take interest and initiative in the work and try to prove that they are competent to work at the higher levels. Thus, delegation of authority becomes a motivating factor. Congenial working conditions : It is a non financial incentive for motivation. Employees should be given various facilities and conveniences at the work place. The work environment should be pleasant and safe. This creates desire to work efficiently. Helpful attitude of management : The helpful attitude of management towards its employees creates a sense of affinity for the Organisation. Fair treatment to workers creates better understanding among workers. Cordial industrial relations also motivate employees. Thus, enlightened and pro-employee attitude of management acts as a motivating factor. Fair opportunity of promotion : Fair opportunity of promotion to all eligible workers is one more method useful for motivating employees. They take interest in the work as they feet that they will be rewarded in the form of promotions. Training facility should be provided to employees in order to make them eligible for promotion. Labour participation in management : Labour participation in management is useful for the motivation of employees. Workers get higher status and better scope for expressing their views through such participation. Even the formation of quality circles or joint management councils is useful for motivating employees. Designation and status : When an employee is provided with a better designation, it adds to his status. Employees are proud to reveal their attractive and high-sounding designations.

Q.5. Describe the term physical distribution management? Discuss various components of physical distribution management. Ans. Physical distribution management (PDM) is concerned with ensuring the product is in the right place at the right time. Place has always been thought of as being the least dynamic of the 4Ps. Marketing practitioners and academics have tended to concentrate on the more conspicuous aspects of marketing. It is now recognised that PDM is a critical area of overall marketing management. Much of its expertise is borrowed from military practice. During the Second World War and the Korean and Vietnam wars, supplies officers had to perform extraordinary feats of PDM, in terms of food, clothing, ammunition, weapons and a whole range of support equipment having to be transported across the world. The military skill that marketing has adopted and applied to PDM is that of logistics. Marketing management realised that distribution could be organised in a scientific way so the concept of business logistics developed, focusing attention on and increasing the importance of PDM. Order processing: It is the first of the four stages in the logistical process. The efficiency of order processing has a direct effect on lead times. Orders are received from the sales team through the sales department. Many companies establish regular supply routes that remain relatively stable over a period of time providing that the supplier performs

satisfactorily. Very often contracts are drawn up and repeat orders (forming part of the initial contract) are made at regular intervals during the contract period. Taken to its logical conclusion this effectively does away with ordering and leads to what is called partnership sourcing. This is an agreement between the buyer and seller to supply a particular product or commodity as an when required without the necessity of negotiating a new contract every time an order is placed. Order-processing systems should function quickly and accurately. Other departments in the company need to know as quickly as possible that an order has been placed and the customer must have rapid confirmation of the orders receipt and the precise delivery time. Even before products are manufactured and sold the level of office efficiency is a major contributor to a companys image. Incorrect paperwork and slow reactions by the sales office are often an unrecognised source of ill-will between buyers and sellers. When buyers review their suppliers, efficiency of order processing is an important factor in their evaluation. A good computer system for order processing allows stock levels and delivery schedules to be automatically updated so management can rapidly obtain an accurate view of the sales position. Accuracy is an important objective of order processing as are procedures that are designed to shorten the order processing cycle. Inventory: Inventory, or stock management, is a critical area of PDM because stock levels have a direct effect on levels of service and customer satisfaction. The optimum stock level is a function of the type of market in which the company operates. Few companies can say that they never run out of stock, but if stock-outs happen regularly then market share will be lost to more efficient competitors. Techniques for determining optimum stock levels are illustrated later in this chapter. The key lies in ascertaining the re-order point. Carrying stock at levels below the re-order point might ultimately mean a stockout, whereas too high stock levels are unnecessary and expensive to maintain. The stock/cost dilemma is clearly illustrated by the systems approach to PDM that is dealt with later. Stocks represent opportunity costs that occur because of constant competition for the companys limited resources. If the companys marketing strategy requires that high stock levels be maintained, this should be justified by a profit contribution that will exceed the extra stock carrying costs. Sometimes a company may be obliged to support high stock levels because the lead-times prevalent in a given market are particularly short. In such a case, the company must seek to reduce costs in other areas of the PDM mix.

Warehousing: American marketing texts tend to pay more attention to warehousing than do British texts. This is mainly because of the relatively longer distances involved in distributing in the USA, where it can sometimes take days to reach customers by the most efficient road or rail routes. The logistics of warehousing can, therefore, be correspondingly more complicated in the USA than in the UK. However, the principles remain the same, and indeed the European Union should be viewed as a large home market. Currently, many companies function adequately with their own on-site warehouses from where goods are despatched direct to customers. When a firm markets goods that are ordered regularly, but in small quantities, it becomes more logical to locate warehouses strategically around the country. Transportation can be carried out in bulk from the place of manufacture to respective warehouses where stocks wait ready for further distribution to the customers. This system is used by large retail chains, except that the warehouses and transportation are owned and operated for them by logistics experts (e.g. BOC Distribution, Excel Logistics and Rowntree Distribution). Levels of service will of course increase when numbers of warehouse locations increase, but cost will increase accordingly. Again, an optimum strategy must be established that reflects the desired level of service. Transportation: Transportation usually represents the greatest distribution cost. It is usually easy to calculate because it can be related directly to weight or numbers of units. Costs must be carefully controlled through the mode of transport selected amongst alternatives, and these must be constantly reviewed. During the past 50 years, road transport has become the dominant transportation mode in the UK. It has the advantage of speed coupled with door-to-door delivery. The patterns of retailing that have developed, and the pressure caused by low stock holding and short lead times, have made road transport indispensable. When the volume of goods being transported reaches a certain level some companies purchase their own vehicles, rather than use the services of haulage contractors. However, some large retail chains like Marks and Spencer, Tesco and Sainsburys have now entrusted all their warehousing and transport to specialist logistics companies as mentioned earlier. For some types of goods, transport by rail still has advantages. When lead-time is a less critical element of marketing effort, or when lowering transport costs is a major objective, this mode of transport becomes viable. Similarly, when goods are hazardous or bulky in relation to value, and produced in large volumes then rail transport is advantageous. Rail transport is also suitable for light goods that require speedy delivery (e.g. letter and parcel post).

Q.6. Describe the role of distribution channel. List the factors in the selection of distribution channel. Ans. As noted, distribution channels often require the assistance of others in order for the marketer to reach its target market. But why exactly does a company need others to help with the distribution of their product? Wouldnt a company that handles its own distribution functions be in a better position to exercise control over product sales and potentially earn higher profits? Also, doesnt the Internet make it much easier to distribute products thus lessening the need for others to be involved in selling a companys product? While on the surface it may seem to make sense for a company to operate its own distribution channel (i.e., handling all aspects of distribution) there are many factors preventing companies from doing so. While companies can do without the assistance of certain channel members, for many marketers some level of channel partnership is needed. For example, marketers who are successful without utilizing resellers to sell their product (e.g., Dell Computers sells mostly through the Internet and not in retail stores) may still need assistance with certain parts of the distribution process (e.g., Dell uses parcel post shippers such as FedEx and UPS). In Dells case creating their own transportation system makes little sense given how large such a system would need to be in order to service Dells customer base. Thus, by using shipping companies Dell is taking advantage of the benefits these services offer to Dell and to Dells customers. Factors in the selection of dirtribution channels: Reach: The channel you choose must be easily accessible for customers and prospects. If you sell products locally, choose a retailer or distributor in your area who knows the local market. If you are expanding and want to sell your products in other states, choose a distribution network that provides coverage of your chosen markets. Selling products around the world is now a practical reality for businesses of any size, thanks to the Internet. The cost of setting up a website that any customer with Internet access can reach is very low compared to the cost of setting up or managing a global distribution network. Skills: You want your customers to receive the best possible service. That's not easy when you are dealing with customers through a third-party distribution channel. If you sell high-value, complex products to business customers, you need sales people with good product knowledge and the ability to build relationships with customers. A direct sales force may be the right solution if your customer base is small. If you have a large group of business customers around the country, look for a distributor network selling similar products. They will have the skills and knowledge to sell your products, particularly if you provide their sales team with product training. Customers: Using a distribution channel doesn't just give you a method of delivering products to your own customers; it could also give you access to a much larger customer base. Look for a distributor or retail network that sells products that are complementary to your own. By offering sales incentives to the distributor, you can tap into their customer base and grow your own business.

Control: Control is an important factor in channel selection. Check if the distribution network is selling products that are competitive to yours. If it is, you need to motivate the network to give preference to your products. You also need to ensure that the network is willing to operate to the standards of customer service you set. Allocate a member of your team to monitor and manage the performance of the distribution channel. It is the people in the channel who control the relationship with your customers, so the right choice is critical.

MK0011 Consumer Behavior (Book ID: B1221):-

Q.1. Why is it important to consider the behavior of consumers while deciding on the marketing mix of the company? Elaborate with suitable examples. Ans. The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products, and retailers); The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media);

The behavior of consumers while shopping or making other marketing decisions; Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome; How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer.

One "official" definition of consumer behavior is "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society." Although it is not necessary to memorize this definition, it brings up some useful points: Behavior occurs either for the individual, or in the context of a group (e.g., friends influence what kinds of clothes a person wears) or an organization (people on the job make decisions as to which products the firm should use). Consumer behavior involves the use and disposal of products as well as the study of how they are purchased. Product use is often of great interest to the marketer, because this may influence how a product is best positioned or how we can encourage increased consumption. Since many environmental problems result from product disposal (e.g., motor oil being sent into sewage systems to save the recycling fee, or garbage piling up at landfills) this is also an area of interest. Consumer behavior involves services and ideas as well as tangible products. The impact of consumer behavior on society is also of relevance. For example, aggressive marketing of high fat foods, or aggressive marketing of easy credit, may have serious repercussions for the national health and economy. The most obvious is for marketing strategyi.e., for making better marketing campaigns. For example, by understanding that consumers are more receptive to food advertising when they are hungry, we learn to schedule snack advertisements late in the afternoon. By understanding that new products are usually initially adopted by a few consumers and only spread later, and then only gradually, to the rest of the population, we learn that (1) companies that introduce new products must be well financed so that they can stay afloat until their products become a commercial success and (2) it is important to please initial customers, since they will in turn influence many subsequent customers brand choices. A second application is public policy. In the 1980s, Accutane, a near miracle cure for acne, was introduced. Unfortunately, Accutane resulted in severe birth defects if taken by pregnant women. Although physicians were instructed to warn their female patients of this, a number still became pregnant while taking the drug. To get consumers

There are four main applications of consumer behavior:

attention, the Federal Drug Administration (FDA) took the step of requiring that very graphic pictures of deformed babies be shown on the medicine containers. Social marketing involves getting ideas across to consumers rather than selling something. Marty Fishbein, a marketing professor, went on sabbatical to work for the Centers for Disease Control trying to reduce the incidence of transmission of diseases through illegal drug use. The best solution, obviously, would be if we could get illegal drug users to stop. This, however, was deemed to be infeasible. It was also determined that the practice of sharing needles was too ingrained in the drug culture to be stopped. As a result, using knowledge of consumer attitudes, Dr. Fishbein created a campaign that encouraged the cleaning of needles in bleach before sharing them, a goal that was believed to be more realistic. As a final benefit, studying consumer behavior should make us better consumers. Common sense suggests, for example, that if you buy a 64 liquid ounce bottle of laundry detergent, you should pay less per ounce than if you bought two 32 ounce bottles. In practice, however, you often pay a size premium by buying the larger quantity. In other words, in this case, knowing this fact will sensitize you to the need to check the unit cost labels to determine if you are really getting a bargain.

There are several units in the market that can be analyzed. Our main thrust in this course is the consumer. However, we will also need to analyze our own firms strengths and weaknesses and those of competing firms. Suppose, for example, that we make a product aimed at older consumers, a growing segment. A competing firm that targets babies, a shrinking market, is likely to consider repositioning toward our market. To assess a competing firms potential threat, we need to examine its assets (e.g., technology, patents, market knowledge, awareness of its brands) against pressures it faces from the market. Finally, we need to assess conditions (the marketing environment). For example, although we may have developed a product that offers great appeal for consumers, a recession may cut demand dramatically.

Q.2. List the different roles that a consumer plays while making a purchase decision. Ans. Markets have to be understood before marketing strategies can be developed. People using consumer markets buy goods and services for personal consumption. Consumers vary tremendously in age, income, education, tastes, and other factors. Consumer behavior is influenced by the buyer's characteristics and by the buyer's decision process. Buyer characteristics include four major factors: cultural, social, personal, and psychological. We can say that following factors can influence the Buying decision of the buyer:

 Cultural Factors: Cultural factors exert the broadest and deepest influence on consumer behavior. The marketer needs to understand the role played by the buyer's culture, subculture, and social class. Culture: Culture is the most basic cause of a person's wants and behavior. Human behavior is largely learned. Growing up in a society, a child learns basic values, perceptions, wants, and behaviors from the family and other important institutions. A person normally learns or is exposed to the following values: achievement and success, activity and involvement, efficiency and practicality, progress, material comfort, individualism, freedom, humanitarianism, youthfulness, and fitness and health. Every group or society has a culture, and cultural influences on buying behavior may vary greatly from country to country. Failure to adjust to these differences can result in ineffective marketing or embarrassing mistakes. For example, business representatives of a U.S. community trying to market itself in Taiwan found this out the hard way. Seeking more foreign trade, they arrived in Taiwan bearing gifts of green baseball caps. It turned out that the trip was scheduled a month before Taiwan elections, and that green was the color of the political opposition party. Worse yet, the visitors learned after the fact that according to Taiwan culture, a man wears green to signify that his wife has been unfaithful. The head of the community delegation later noted, "I don't know whatever happened to those green hats, but the trip gave us an understanding of the extreme differences in our cultures." International marketers must understand the culture in each international market and adapt their marketing strategies accordingly. Subculture: Each culture contains smaller subcultures or groups of people with shared value systems based on common life experiences and situations. Subcultures include nationalities, religions, racial groups, and geographic regions. Many subcultures make up important market segments, and marketers often design products and marketing programs tailored to their needs. Here are examples of four such important subculture groups.

Social Class: Almost every society has some form of social class structure. Social Classes are society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. Social class is not determined by a single factor, such as income, but is measured as a combination of occupation, income, education, wealth, and other variables. In some social systems, members of different classes are reared for certain roles and cannot change their social positions. Marketers are interested in social class because people within a given social class tend to exhibit similar buying behavior. Social classes show distinct product and brand preferences in areas such as clothing, home furnishings, leisure activity, and automobiles.

Social Factors: A consumer's behavior also is influenced by social factors, such as the consumer's small groups, family, and social roles and status. Groups: Many small groups influence a persons behavior. Groups that have a direct influence and to which a person belongs are called membership groups. In contrast, reference groups serve as direct (faceto- face) or indirect points of comparison or reference in forming a person's attitudes or behavior. Reference groups to which they do not belong often influence people. Marketers try to identify the reference groups of their target markets. Reference groups expose a person to new behaviors and lifestyles, influence the person's attitudes and selfconcept, and create pressures to conform that may affect the person's product and brand choices. The importance of group influence varies across products and brands. It tends to be strongest when the product is visible to others whom the buyer respects. Manufacturers of products and brands subjected to strong group influence must figure out how to reach opinion leaderspeople within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert influence on others. Many marketers try to identify opinion leaders for their products and direct marketing efforts toward them. In other cases, advertisements can simulate opinion leadership, thereby reducing the need for consumers to seek advice from others. The importance of group influence varies across products and brands. It tends to be strongest when the product is visible to others whom the buyer respects. Purchases of products that are bought and used privately are not much affected by group influences because neither the product nor the brand will be noticed by others.

Family: Family members can strongly influence buyer behavior. The family is the most important consumer buying organization in society, and it has been researched extensively. Marketers are interested in the roles and influence of the husband, wife, and children on the purchase of different products and services. Husband-wife involvement varies widely by product category and by stage in the buying process. Buying roles change with evolving consumer lifestyles. Such changes suggest that marketers who've typically sold their products to only women or only men are now courting the opposite sex. For example, with research revealing that women now account for nearly half of all hardware store purchases, home improvement retailers such as Home Depot and Builders Square have turned what once were intimidating warehouses into femalefriendly retail outlets. The new Builders Square II outlets feature decorator design centers at the front of the store. To attract more women, Builders Square runs ads targeting women in Home, House Beautiful, Woman's Day, and Better Homes and Gardens. Home Depot even offers bridal registries. Similarly, after research indicated that women now make up 34 percent of the luxury car market, Cadillac has started paying more attention to this important segment. Male car designers at Cadillac are going about their work with paper clips on their fingers to simulate what it feels like to operate buttons, knobs, and other interior features with longer fingernails. The Cadillac Catera features an airconditioned glove box to preserve such items as lipstick and film. Under the hood, yellow markings highlight where fluid fills go. Children may also have a strong influence on family buying decisions. For example, it ran ads to woo these "back-seat consumers" in Sports Illustrated for Kids, which attracts mostly 8- to 14- year-old boys. "We're kidding ourselves when we think kids aren't aware of brands," says Venture's brand manager, adding that even she was surprised at how often parents told her that kids played a tie-breaking role in deciding which car to buy. In the case of expensive products and services, husbands and wives often make joint decisions.

Roles and Status: A person belongs to many groupsfamily, clubs, organizations. The person's position in each group can be defined in terms of both role and status. A role consists of the activities people are expected to perform according to the persons around them.

Personal Factors: A buyer's decisions also are influenced by personal characteristics such as the buyer's age and lifecycle stage, occupation, economic situation, lifestyle, and personality and self-concept. Age and Life-Cycle Stage: People change the goods and services they buy over their lifetimes. Tastes in food, clothes, furniture, and recreation are often age related. Buying is also shaped by the stage of the family life cyclethe stages through which families might pass as they mature over time. Marketers often define their target markets in terms of life-cycle stage and develop appropriate products and marketing plans for each stage. Traditional family life-cycle stages include young singles and married couples with children. Occupation: A person's occupation affects the goods and services bought. Bluecollar workers tend to buy more rugged work clothes, whereas white-collar workers buy more business suits. Marketers try to identify the occupational groups that have an above-average interest in their products and services. A company can even specialize in making products needed by a given occupational group. Thus, computer software companies will design different products for brand managers, accountants, engineers, lawyers, and doctors. Economic Situation: A person's economic situation will affect product choice. Marketers of income-sensitive goods watch trends in personal income, savings, and interest rates. If economic indicators point to a recession, marketers can take steps to redesign, reposition, and reprice their products closely. Lifestyle: People coming from the same subculture, social class, and occupation may have quite different lifestyles. Life style is a person's pattern of living as expressed in his or her psychographics. It involves measuring consumers' major AIO dimensionsactivities (work, hobbies, shopping, sports, social events), interests (food, fashion, family, recreation), and opinions (about themselves, social issues, business, products). Lifestyle captures something more than the person's social class or personality. It profiles a person's whole pattern of acting and interacting in the world. Personality and Self-Concept: Each person's distinct personality influences his or her buying behavior. Personality refers to the unique psychological characteristics that lead to relatively consistent and lasting responses to one's own environment. Personality is usually described in terms of traits such as selfconfidence, dominance, sociability, autonomy, defensiveness, adaptability, and aggressiveness. Personality can be useful in analyzing consumer behavior for certain product or brand choices. For example, coffee marketers have discovered

that heavy coffee drinkers tend to be high on sociability. Thus, to attract customers, Starbucks and other coffeehouses create environments in which people can relax and socialize over a cup of steaming coffee. Psychological Factors: A person's buying choices are further influenced by four major psychological factors: motivation, perception, learning, and beliefs and attitudes. Motivation: A person has many needs at any given time. Some are biological, arising from states of tension such as hunger, thirst, or discomfort. Others are psychological, arising from the need for recognition, esteem, or belonging. Most of these needs will not be strong enough to motivate the person to act at a given point in time. A need becomes a motive when it is aroused to a sufficient level of intensity. A motive (or drive) is a need that is sufficiently pressing to direct the person to seek satisfaction. Psychologists have developed theories of human motivation. Two of the most popularthe theories of Sigmund Freud and Abraham Maslowhave quite different meanings for consumer analysis and marketing.

Maslow's Theory of Motivation: Abraham Maslow sought to explain why people are driven by particular needs at particular times. Why does one person spend much time and energy on personal safety and another on gaining the esteem of others? Maslow's answer is that human needs are arranged in a hierarchy, from the most pressing to the least pressing. Maslow's hierarchy of needs is shown in Figure. In order of importance, they are physiological needs, safety needs, social needs, esteem needs, and self-actualization needs. A person tries to satisfy the most important need first. When that need is satisfied, it will stop being a motivator and the person will then try to satisfy the next most important need. For example, starving people (physiological need) will not take an interest in the latest happenings in the art world (self-actualization needs), nor in how they are seen or esteemed by others (social or esteem needs), nor even in whether they are breathing clean air (safety needs). But as each important need is satisfied, the next most important need will come into play.

Perception: A motivated person is ready to act. How the person acts is influenced by his or her own perception of the situation. All of us learn by the flow of information through our five senses: sight, hearing, smell, touch, and taste. However, each of us receives, organizes, and interprets this sensory information in an individual way. Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world.

Learning: When people act, they learn. Learning describes changes in an individual's behavior arising from experience. Learning theorists say that most human behavior is learned. Learning occurs through the interplay of drives, stimuli, cues, responses, and reinforcement.

Beliefs and Attitudes: Through doing and learning, people acquire beliefs and attitudes. These, in turn, influence their buying behavior. A belief is a descriptive thought that a person has about something. Buying behavior differs greatly for a tube of toothpaste, a tennis racket, an expensive camera, and a new car. More complex decisions usually involve more buying participants and more buyer deliberation. Figure shows types of consumer buying behavior based on the degree of buyer involvement and the degree of differences among brands.

Q.3. Distinguish between differentiated, undifferentiated and concentrated marketing. Explain the concept with the help of suitable examples. Ans. Companies and marketing professionals use a variety of marketing strategies to effectively convey a message or promote a product or brand. Marketing strategies are designed to create focus and a detailed approach for a marketing campaign. Differentiated and concentrated marketing strategies are two possible approaches. Both are advantageous for different reasons. Differentiated Marketing Strategy: A differentiated marketing strategy is when a company creates campaigns that appeal to at least two market segments or target groups. For example, a store can promote a sale that appeals to people in at least two cities or locations, or a company can market a product that appeals to women in at least two age groups. Differentiated marketing strategies can target many more than two segments; shoe companies often create campaigns that appeal to both men and women in a variety of age groups. Differentiated marketing strategies can also use different messages in the same campaign for different segments. For example, a retailer might market low cost to a budget-conscious segment and product quality to an affluent market segment. Concentrated Marketing Strategy: A concentrated marketing strategy is targeted to one specific market segment or audience. For example, a company might market a product specifically for teenage girls, or a retailer might market his business to residents in a specific town. Concentrated marketing strategies are often geared for smaller groups of people, because they are designed to appeal to a specific segment. Undifferentiated Marketing Strategy: When discussing differentiated and concentrated marketing strategies, it is also important to understand undifferentiated marketing strategies. Basically, in an undifferentiated marketing strategy, marketers use the same message for all segments of the market. This is similar to mass marketing; marketers typically create a message that appeals to everyone, so the message is often general or simple to allow more people to relate.

Example: To better understand differentiated, concentrated and undifferentiated marketing strategies, it helps to look at an example from each perspective. Assume a restaurant is trying to market its new business. Using a differentiated marketing strategy, the restaurant can appeal to the college crowd by marketing cheap specials on food and drinks, the family crowd by marketing kid-friendly meal options and table entertainment and to the elderly by marketing senior discounts and early-bird specials. Using a concentrated marketing strategy, the restaurant can market its convenient location to a group of residents within 10 miles of the business. Using an undifferentiated marketing strategy, the restaurant can highlight its grand opening celebration.

Q.4. Explain the different positioning approaches used by the companies. Give examples. Ans. In marketing, positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. Re-positioning involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market. De-positioning involves attempting to change the identity of competing products, relative to the identity of your own product, in the collective minds of the target market. The original work on Positioning was consumer marketing oriented, and was not as much focused on the question relative to competitive products as much as it was focused on cutting through the ambient "noise" and establishing a moment of real contact with the intended recipient. In the classic example of Avis claiming "No.2, We Try Harder", the point was to say something so shocking (it was by the standards of the day) that it cleared space in your brain and made you forget all about who was #1, and not to make some philosophical point about being "hungry" for business. The growth of high-tech marketing may have had much to do with the shift in definition towards competitive positioning. An important component of hi-tech marketing in the age of the world wide web is positioning in major search engines such as Google, Yahoo and Bing, which can be accomplished through Search Engine Optimization , also known as SEO. This is an especially important component when attempting to improve competitive positioning among a younger demographic, which tends to be web oriented in their shopping and purchasing habits as a result of being highly connected and involved in social media in general. Q.5. Briefly explain the four personality types as identified by Carl Jung. Ans. Carl Jung identified a number of personality types such as: Sensing-thinking Personality: Individuals with this personality type make rational, objective decisions. They are logical and empirical in their approach, are inclined to be highly involved, extensive problem solving orientation, weigh economic considerations, are price sensitive and avoid any risks. They identify themselves with material objects or things and have short-term perspective in making decisions.

Sensing-feeling personality: They are moved by personal values rather than logic and believe in personal experience. They follow a subjective orientation in making decisions, are inclined to consider others when making a decision and share risks. They are status conscious and have short-term perspective in decision-making. Intuitive-thinking personality: Such individuals take a broad view of their own situation and the world. Though they heavily rely on imagination and consider a wider range of options, yet use logic in making decisions. Such individuals are not averse to taking risks while making decisions and their perspective is long-term. Intuitive-feeling personality: Their view of personal situations or world is broad. They use imagination in considering a wide range of options in making a decision, are quite likely to consider others views and show least sensitivity toward prices. They are also inclined to seek novelty, take risks and time horizon is indefinite in making decisions.

Q.6. Explain the concept of ideal and actual self. Give suitable examples. Ans. The self concept is how we think about and evaluate ourselves. To be aware of oneself is to have a concept of oneself. The term self-concept is a general term used to refer to how someone thinks about or perceives themselves. It is an important term for both social psychology and humanism.

(1) The Existential Self This is the most basic part of the self-scheme or self-concept; the sense of being separate and distinct from others and the awareness of the constancy of the self (Bee 1992). The child realises that they exist as a separate entity from others and that they continue to exist over time and space. According to Lewis awareness of the existential self begins as young as two to three months old and arises in part due to the relation the child has with the world. For example, the child smiles and someone smiles back, or the child touches a mobile and sees it move. (2) The Categorical Self Having realised that he or she exists as a separate experiencing being, the child next becomes aware that he or she is also an object in the world. Just as other objects including people have properties that can be experienced (big, small, red, smooth and so on) so the child is becoming aware of him or her self as an object which can be experienced and which has properties. The self too can be put into categories such as age, gender, size or skill. Two of the first categories to be applied are age (I am 3) and gender (I am a girl).

In early childhood the categories children apply to themselves are very concrete (e.g. hair colour, height and favourite things). Later, self-description also begins to include reference to internal psychological traits, comparative evaluations and to how others see them.

MK0012 Retail Marketing (Book ID: B1222):Q.1. List the different stages involved in retail environment analysis. Ans. The different stages involved in retail environment analysis are: Market size-age: Is the market relatively small or large, and can it be broadly characterizes by its stage of development (start-up, emerging, growth, maturing, declining)? Number of competitors: What is the level of competition for the market? Are there many small rivals or a few large? How easy is it for new players to enter the industry? Rule of the game: How do firms compete in this market? Do they compete on price, quality, technology, service, etc.? What is the average level of profitability? Is it a profitable market or is it a high volume, low margin field? Industry trends-driving forces: What are the industry trends and how rapidly do they change? Is the industry growing and innovative or stable or slow to change? The rate of market growth is a critical factor because it influences the equilibrium between demand and supply. Industry attractiveness: The overall attractiveness of an industry is determind by the interaction of these key structural forces. The higher the rate of growth and the weaker the competition, the more attractive the industry.

Industry structure analysis: The initial analysis of industry structure provides a snap of the competitive environmet. The strategists also need to anticipate future trends; new development that may change the existing structure.

Q.2. Briefly explain GAP model of service quality. Ans. History of the Gaps Model: The gaps model of service quality was first developed by a group of authors, Parasuraman, Zeithaml, Berry, at Texas A&M and North Carolina Universities, in 1985 (Parasuraman, Zeithaml & Berry). Based on exploratory studies of service such as executive interviews and focus groups in four different service businesses the authors proposed a conceptual model of service quality indicating that consumers perception toward a service quality depends on the four gaps existing in organization consumer environments. They further developed in-depth measurement scales for service quality in a later year (Parasuraman, Zeithaml, Berry, 1988). Theory of the Gaps Model: Perceived service quality can be defined as, according to the model, the difference between consumers expectation and perceptions which eventually depends on the size and the direction of the four gaps concerning the delivery of service quality on the companys side (Fig. 1; Parasuraman, Zeithaml, Berry, 1985). Customer Gap = f (Gap 1, Gap 2, Gap 3, Gap 4) The magnitude and the direction of each gap will affect the service quality. For instance, Gap 3 will be favourable if the delivery of a service exceeds the standards of service required by the organization, and it will be unfavourable when the specifications of the service delivered are not met. The key points for each gap can be summarized as follows: Customer gap: The difference between customer expectations and perceptions the service quality gap. Gap 1: The difference between what customers expected and what management perceived about the expectation of customers. Gap 2: The difference between managements perceptions of customer expectations and the translation of those perceptions into service quality specifications and designs. Gap 3: The difference between specifications or standards of service quality and the actual service delivered to customers. Gap 4: The difference between the service delivered to customers and the promise of the firm to customers about its service quality

Q.3. Discuss what are the various types of retail store locations. What are their pros and cons? Ans. The various types of store locations are: Mall Space:

From kiosks to large anchor stores, a mall has many retailers competing with each other under one roof. There are generally 3 to 5 anchor stores, or large chain stores, and then dozens of smaller retail shops. Typically the rent in a mall location is much higher than other retail locations. This is due to the high amount of customer traffic a mall generates. Before selecting this type of store location, be sure the shopper demographic matches the description of your customers. Mall retailers will have to make some sacrifices in independence and adhere to a set of rules supplied by mall management. Shopping Center:

Strip malls and other attached, adjoining retail locations will also have guidelines or rules for how they prefer their tenants to do business. These rules are probably more lenient than a mall, but make sure you can live with them before signing a lease. Your community probably has many shopping centers in various sizes. Some shopping centers may have as few as 3 units or as many as 20 stores. The types of retailers, and the goods or services they offer, in the strip mall will also vary. One area to investigate before choosing this type of store location is parking. Smaller shopping centers and strip malls may have a limited parking area for your customers. Downtown Area:

Like the mall, this type of store location may be another premium choice. However, there may be more freedom and fewer rules for the business owner. Many communities are hard at work to revitalize their downtown areas and retailers can greatly benefit from this effort. However, the lack of parking is generally a big issue for downtown retailers. You'll find many older, wellestablished specialty stores in a downtown area. This type of store seems to thrive in the downtown setting. Free Standing Locations:

This type of retail location is basically any stand-alone building. It can be tucked away in a neighborhood location or right off a busy highway. Depending on the landlord, there are generally no restrictions on how a retailer should operate his business. It will probably have ample parking and the cost per square foot will be reasonable. The price for all that freedom may be traffic. Unlike the attached retail locations where customers may wander in because they were shopping nearby, the retailer of a free standing location has to work at marketing to get the customer inside.

Office Building:

The business park or office building may be another option for a retailer, especially when they cater to other businesses. Tenants share maintenance costs and the image of the building is usually upscale and professional. Home-based:

More and more retail businesses are getting a start at home. Some may eventually move to a commercial store location, while many remain in the business owner's spare room. This type of location is an inexpensive option, but growth may be limited. It is harder to separate business and personal life in this setup and the retailer may run into problems if there isn't a different address and/or phone number for the business. Pros of Retailing and Business Ownership: Holiday sales figures Research and assistance from trade associations Satisfaction of building something from the ground up Attending trade shows and buying events Meeting new people Having on hand exactly what your customers want Cash transactions You get to set all the rules Selling merchandise you love and have an interest in Creating a pleasant atmosphere and receiving compliments about your shop Hiring and training wonderful employees

Cons of Retailing and Business Ownership: January sales figures Large cash investment at startup Long hours and little (or no) pay to start Only vacation is attending trade shows and buying events Meeting difficult customers Not having what your customers want Bounced checks Having to do it all (marketing, buying, bookkeeping) yourself Too little profit on the merchandise you love to sell Finding damaged merchandise, empty packages and open food on your shelves

Firing and disciplining lazy or rude employees

Q.4. List the factors influence retail store image. Discuss the elements of an interior store design. Ans. Whether you are working with existing furnishings and fabrics or "starting from scratch" with an empty room, you should always use the elements and principles of design as a guide in choosing everything. The elements are your tools or raw materials, much like paints are the basics to a painter. The elements of design include space, line, form, color, and texture. The principles of design relate to how you use these elements and are balance, emphasis, rhythm, proportion and scale, and harmony and unity. Space: Space defines the boundaries and sets the limits on the functional and decorative things you can do. Usually you will not determine the space; instead, you will be faced with the challenge of using the existing space effectively. Line: The lines in a room are second only to color in importance when it comes to setting the overall mood or feeling of a room. The lines of window fashions should support the dominant line of the room. In most situations, the dominant line is straight (vertical, horizontal or diagonal) rather than curved. Your choice of emphasizing the direction of lines will determine the mood you want to create.

o Vertical lines add height and dignity, creating a more formal atmosphere. Vertical lines also balance the horizontal lines found in most furniture. o Horizontal lines tend to create a restful, informal feeling. They work well in casual rooms or as relief to the strong verticals of formal rooms. o Diagonal lines attract attention and lead the eye. They can be disturbing unless supported by verticals or opposing diagonals. o Curved lines add a softening effect and keep the room from becoming too stiff. Use curved lines with some restraint to keep the room from becoming too soft and overly feminine. Form: Lines that join together produce the form, or shape, of an object, which in turn impacts the overall feeling of a room. Straight lines create rectangles, square and triangles. Curved lines form circles and ovals. The rectangle is the most popular form and is often the dominant shape in a room. Triangles provide stability and curved shapes soften the contours of objects. Color: More than any other element, color can make a room beautiful. Color can set the mood. It can make a room warmer or cooler, larger or smaller. It can hide unsightly features or call attention to the center of interest. Even with the simplest furnishings, the proper use of color can transform a room. Texture: Texture is playing an increasingly important role in home decorating. Visual texture is a material's apparent smoothness or roughness. To maintain and enhance a casual feeling, use fabrics that are more heavily textured, nubby or rough visual texture. Smooth, shiny surfaces such as silk, moir, chintz and silk-like looks support a more formal feeling in a room. Using several levels of complementary textures adds variety and maintains interest. However, it is a good idea to avoid dramatic contrasts in texture.

Q.5. Write a short note on visual merchandising. Ans. The display of products which makes them appealing, attractive, accessible, engaging, and enticing to shoppers in a retail store. Visual merchandising utilizes displays, color, lighting, smells, sounds, digital technology and interactive elements to catch customers' attention and persuade them to make purchases. Visual merchandising helps convey the image of the brand and reflects the personality of the target markets that the retail store wants to attract. Visual merchandising is the activity and profession of developing floor plans and threedimensional displays in order to maximise sales. Both goods or services can be displayed to highlight their features and benefits. The purpose of such visual merchandising is to attract, engage and motivate the customer towards making a purchase. Visual merchandising commonly occurs in retail spaces such as retail stores and trade shows. When the giant nineteenth century dry goods establishments like Marshall Field & Co. shifted their business from wholesale to retail, the visual display of goods became necessary to attract the general consumers. The store windows were often used to attractively display the store's merchandise. Over time, the design aesthetic used in window displays moved indoors and became part of the overall interior store design, eventually reducing the use of display windows in many suburban malls.[citation needed] In the twentieth century, well-known artists such as Salvador Dal and Andy Warhol created window displays The purpose of visual merchandising is to: Make it easier for the customer to locate the desired category and merchandise. Make it easier for the customer to self-select. Make it possible for the shopper to co-ordinate and accessorise. Recommend, highlight and demonstrate particular products at strategic locations.

Q.6. Briefly discuss the strategic retail planning process. Ans. Prior to starting a new strategic planning process it will be necessary to access the past planning approach that has been used within the organization and determine howorganization's culture may have been affected. Addressing these cultural issues critical to the success of the current planning process. The four possible approaches to planning are: Reactive: This approach is past oriented,an active attempt to turn back the clock to the past. The past, no matter how bad, is preferable to the present. And definitely better than the future will be. The past is romanticized and there is a desire to return to the "good old days." These people seek to undo the change that has created the present, and they fear the future, which they attempt to prevent. Inactive: This approach is present oriented, an attempt to preserve the present, which is preferable to both the past and the future. While the present may have problems it is better

than the past. The expectation is that things are as good as they are likely to get and the future will only be worse. Any additional change is likely to be for the worse and should therefore be avoided. Pre-active: This approach is about predicting the future, an attempt to predict the future and then to plan for that predicted future. Technological change is seen as the driving force bringing about the future, which will be better than the present or the past. The planning process will seek to position the organization to take advantage ofthe change that is happening around them. Pro-active: This approach is about creating the future, designing a desired future and then inventing ways to create that future state. Not only is the future a preferred state, but the organization can actively control the outcome. Planners actively shape the future, rather than just trying to get ahead of events outside of their control. The predicted changes of the preactive planner are seen not as absolute cons.

 MK0013 Marketing Research (Book ID: B1223):Q.1. List the problems associated with marketing research. Ans. Market Research is a systematic, objective collection and analysis of data about a particular target market, competition, and/or environment. It always incorporates some form of data collection whether it be secondary research (often referred to as desk research) or primary research which is collected direct from a respondent. List of unethical pricing practices. Bid rigging Dumping (pricing policy) Predatory pricing Price discrimination Price fixing Price skimming Price war Supra competitive pricing Variable pricing Content:

Ethical pitfalls in advertising and promotional content include: Issues over truth and honesty. In the 1940s and 1950s, tobacco used to be advertised as promoting health.[20] Today an advertiser who fails to tell the truth not only offends against morality but also against the law. However the law permits "puffery" (a legal term).[21] The difference between mere puffery and fraud is a slippery slope: "The problem... is the slippery slope by which variations on puffery can descend fairly quickly to lies."[22] See main article: false advertising. Issues with violence, sex and profanity. Sexual innuendo is a mainstay of advertising content (see sex in advertising), and yet is also regarded as a form of sexual harassment.[23] Violence is an issue especially for children's advertising and advertising likely to be seen by children.

Taste and controversy. The advertising of certain products may strongly offend some people while being in the interests of others. Examples include: feminine hygiene products, hemorrhoid and constipation medication.[24] The advertising of condoms has become acceptable in the interests of AIDS-prevention, but are nevertheless seen by some as promoting promiscuity. Some companies have actually marketed themselves on the basis of controversial advertising - see Benetton. Sony has also frequently attracted criticism for unethical content (portrayals of Jesus which infuriated religious groups; racial innuendo in marketing black and white versions of its PSP product; graffiti adverts in major US cities).[25] Negative advertising techniques, such as attack ads. In negative advertising, the advertiser highlights the disadvantages of competitor products rather than the advantages of their own. The methods are most familiar from the political sphere: see negative campaigning. Delivery channels:

Direct marketing is the most controversial of advertising channels, particularly when approaches are unsolicited. TV commercials and direct mail are common examples. Electronic spam and telemarketing push the borders of ethics and legality more strongly. Shills and astroturfers are examples of ways for delivering a marketing message under the guise of independent product reviews and endorsements, or creating supposedly independent watchdog or review organisations. For example, fake reviews can be published on Amazon.[26] Shills are primarily for message-delivery, but they can also be used to drive up prices in auctions, such as Ebay auctions.[27] Deceptive Advertising and Ethics:

Another breach of marketing ethics has to do with the use of deceptive advertising. This form of advertising is not specific to one target market, and can sometimes go unnoticed by the public. There are a number of different ways in which deceptive marketing can be presented to consumers; one of these methods is accomplished through the use of humor. In a study conducted by Hassib Shabbir and Des Thwaites, 238 advertisements were assessed and 73.5% of them were found to have used deceptive marketing practices. Of those advertisements that were conducted deceptively, 74.5% of them used humor as a masking device in order to mislead potential customers. Part of what drives this study is the idea that humor provides an escape or relief from some kind of human constraint, and that some advertisers intend to take advantage of this by deceptively advertising a product that can potentially alleviate that constraint through humor. Through the study it was also found that all types of humor are used to deceive consumers, and that there are certain types of humor that are used when making certain deceptive claims. It is important to understand that humor is not the only method that is used to deter consumers minds from what a product actually offers. Before making important purchases, one should always conduct their own research in order to gain a better understanding of what it is they are investing in.

Q.2. Explain the role of marketing research in decision-making process. Ans. The process of research involves the following steps:

Problem definition: First of all we should be clear about the problem we are facing. Suppose in a particular case we want to know which mail piece be employed. Your decision may be to use either direct mail piece A or direct mail piece. B. The researcher should atleast verify that these are the only two options open to you. Should other mail pieces be considered? Should methods other than direct mail be, employed? Should a combination of A and B be used? Let us assume that the alternatives have been correctly specified: either A or B will be employed. The unit of analysis for you is a person, you want to know how persons would respond to mail piece A and mail piece B. Which persons? Are you interested in the 5000 persons on the mailing list? The answer to this question determines the particular units (universe or population) with in the scope of the study. The information sought could be "will A or B generate a higher volume of sales in terms of rupee value from the 5000 names?" Research design : The second step in research is the research design-the blue print for the research. The basic issues addressed in research design are: Should the research environment be internally disturbed by the researcher in specified ways-an experimental design-or should the environment be studied as it exists without such disturbances? In our example of the mail order firm, an experimental design is required if the manager is to use mail piece A for one group and mail piece B for the second. A nonexperimental design would require finding past examples in which A and B had been applied-a most unlikely occurrence, particularly for the population defined. How many observations should be made on each unit in the study? when? Should a single sample be chosen from the total population or should a series of samples be chosen from various subgroups of the population? Should a probability or non-probability sampling procedure be adopted for the study? Data collection: The next step in the research is the collection of relevant data. Collection involves the basic definitions for the concepts to be investigated, specific wordings of inquiries to communicate those concepts, delineation of the environment in which the data will be collected, specific field procedures, and the design of instruments for recording the actual data. Data collection looks forward to data analysis; data requirements for various analytical techniques must be anticipated in the data collection phase. Special care must be taken in the collection phase to avoid sources of understatement or overstatement for the various characteristics. If such biases are feared, the researcher should consider whether there are ways of introducing adjustments. These adjustments would be introduced in the analysis phase, but the data must be generated in the collection phase. The collection phase must consider the diverse tasks of assignment and recruitment of staff, ways of increasing response rates, costs and bias sources under alternative collection approaches, and proper training of personnel. The effect of each of these on accuracy, monetary costs, and time constraints must

be evaluated. Finally, the collection phase must be supervised as well as planned. Unfortunately, many well-planned research projects have failed because of inadequate supervision. Procedures which sound good but are inadequately administered lead to invalid results just as much as ill-conceived procedures do. The "operational definition" is a must in any scientific inquiry and is most obvious in the collection phase. The operational definition is the nitty-gritty of how the details of collection, measurement, and wording are to be handled in the research. It is the practical counter part of the concept developed for the decision maker's action Introduction to Research 10 Methodology Q.3. Describe consumer research process in detail. Ans. Companies conduct marketing research with consumers to better understand their needs and determine customer satisfaction levels. Consumer research is particularly crucial when a company decides to market a new product. The company must determine the potential success of the product by asking consumers for their opinions. After conducting focus groups and surveys, marketing managers must analyze the consumer data and make recommendations based on the survey results. Product Idea Development: The consumer research process usually starts with an idea to create or market a particular product. A small company may hold a meeting between marketing, advertising, engineering and finance managers to develop a product concept. Subsequently, a company may develop a prototype of the product and manufacture some units for demonstration. The product may be demonstrated at trade shows or used as a model during the selling process. Some companies may just write out a description of the product in lieu of a prototype, waiting to confirm the product's potential success before producing it. Secondary Research: Small businesses must collect information about the competition, consumers they serve and market share information before introducing their product. Market share is the percent of sales that a company possesses in the market with a particular product. If the market is too saturated, a business owner may be better off serving another market with his product. However, the company may also decide to serve consumers in which the competition does not target. For example, a small clothing retailer may decide to market to women over 35 instead of trying to target the skinny-jeans-wearing 18- to 34-year-old demographic. Companies such as the NPD Group and Forrester Research supply secondary information for all types of companies.

Focus Groups: Many small companies will first test their product concept or idea through focus groups, which is where managers observe the consumers' reactions to products behind one-way mirrors. A professional moderator usually runs a focus group,

asking questions in a way that alleviates bias. Consumers may provide information about a product that may better help company managers tweak the product. For example, a small restaurant may need to determine which chicken meal and side dishes consumers like best out of two or three choices. Surveys: A company can further research a product with consumers through surveys. Phone surveys are a common way for companies to talk to consumers about the product features and price. A company can often determine the price range at which customers are willing to pay for the product. Additionally, a marketing research manager can also ask consumers how likely they would be to purchase the product in a store. A strong, positive reaction to a purchase-intent question is a good barometer for determining the product's potential success. Surveys are usually conducted with a larger sample size or audience than focus groups, which makes the information more predictable across the general population.

Analysis and Product Introduction: Data is usually coded and submitted to marketing research managers in data tables, according to QuickMBA.com, especially when outside marketing research agencies conduct the research. The research manager or owner must then analyze the data and extract key findings from the research. For example, 80 percent of the survey respondents may say that they would use a small company's cleaning product daily, based on the description. This would further support that company's decision to market the product. The company or business owner would then decide how to best introduce the product to the market, either through direct selling or advertising.

Q.4. What is the importance of customer research? Ans. Consumer research is a necessary and important tool for any business. Understanding your customer needs allows you to better position your company, brands, and products to appeal to the most customers and bring in the most sales. Marketing research is often used to help determine what consumers want, but its equally important to determine what customers dont want. In the numerous studies of new product performance over the years, agreement has developed that understanding consumer needs is of greatest strategic value, especially in the early stages of the NPD process. During these early stages, the product has not yet been specified and the aim is to search for novel product ideas. Successful NPD strongly depends on the quality and quantity of new product ideas. Presumably, consumer research should improve the quality of new product ideas. Yet, many companies do not carry out consumer research or do not use the resulting information. Many reasons exist why consumer research is not fully used for opportunity identification.

A widespread belief among practitioners is that consumers cannot be trusted in their opinion. Several studies have shown that it is difficult to predict final consumer behaviour based on consumers expressed attitudes towards products or certain issues. Nijssen and Lieshout (1995) found that users of NPD methods mention this shortcoming of forecast inaccuracies. Moreover, users mention as well that methods are not able to capture the complexity of the market place. Another problem that plays in NPD is that consumer research is often part of marketers responsibility in a company. It is well known that both marketing and R&D professionals do not always consider each others information to be credible (Song, Neeley and Zhao, 1996). Marketers are often viewed as easy talkers by R&D personnel, as relying too much on intuition rather than on hard facts (Gupta, Raj and Wilemon, 1985; Moenaert and Souder, 1990). If people perceive information as less credible, it means that they perceive the quality to be lower, and this will result in lower information utilisation. Consumer research does not help to come up with innovative new product ideas Various studies have found that the key determinant of new product failure is an absence of innovativeness - the extent to which a new product provides meaningful unique benefits. Not much confidence, however, exists among product developers that consumer research can provide a valuable contribution in the search for new and improved ways of satisfying consumers needs. Although it is generally believed that listening to the voice of the consumer is important, the precise way of listening is not always clear. Effective use of consumer research for this purpose has been identified as a problematic area, because it is unsure what to ask consumers (Ortt and Schoormans, 1993; Ottum and Moore, 1997). An often-heard argument is that asking consumers what they want is useless, because they do not know what they want (Ulwick, 2002). Moreover, the majority of available methods focus on evaluation of products (Wind and Lilien, 1993). In these methods, products (ideas) are presented to a sample of consumers and evaluations are collected. These evaluations are used to optimise the product or to screen and select from different product ideas, ultimately ending up with the product idea with the highest likelihood of market success (Ozer, 1999). However, these methods can be considered as reactive of nature in their use in the early stages. They constrain the researcher in the elicitation of unfulfilled consumer needs, because consumer input is restricted to responses to an already existing concept or product. A risk of 9 relying on them solely is that they are likely to give product developers only me-too-ideas, which hardly excite the consumer. Burton and Patterson (1999) point to this problem by stating that most consumer research only attempts to build on existing and often already fulfilled needs of consumers. Consequently, the results of this kind of consumer research do not exceed common-sense knowledge and hence is consistent with what practitioners already take to be true. Smith (2003) claims that this typically results in a So what, I already suspected thatreaction on the part of the receivers of the results. In case consumer research does not exceed the intuition of end-users and solely reaffirms existing beliefs, it tends to be less used. Moreover, many studies are carried out to increase the saleability of a decision. Such studies are designed after a decision has been made to gain support rather than to provide a basis for

the foundation of new product ideas (Day, 1994). Consumer research delays product development process Product life cycles are becoming shorter, which leads companies to reduce the time it takes to introduce new products at the market. Being early is generally believed to provide a significant competitive advantage. Companies that take too long in bringing new products to the market run the risk that others will get there first, or that consumer needs and wants will change. Consumer research is time-consuming and extends rather then shortens the NPD process. Moreover, consumer research requires additional resource investments (Miller and Swaddling, 2002). Q.5. Describe data-driven MDSS in detail. Ans. Data-driven DSS is a type of DSS that emphasizes access to and manipulation of a timeseries of internal company data and sometimes external data. Simple file systems accessed by query and retrieval tools provide the most elementary level of functionality. Data warehouse systems that allow the manipulation of data by computerized tools tailored to a specific task and setting or by more general tools and operators provide additional functionality. Data-driven DSS with On-line Analytical Processing (OLAP) provides the highest level of functionality and decision support that is linked to analysis of large collections of historical data. Executive Information Systems (EIS) and Geographic Information Systems (GIS) are special purpose DataDriven DSS. In general, a data-driven DSS emphasizes access to and manipulation of a time-series of internal company data and sometimes external and real-time data. Simple file systems accessed by query and retrieval tools provide the most elementary level of functionality. Data warehouse systems that allow the manipulation of data by computerized tools tailored to a specific task and setting or by more general tools and operators provide additional functionality. DataDriven DSS with On-line Analytical Processing (cf., Codd et al., 1993) provide the highest level of functionality and decision support that is linked to analysis of large collections of historical data. Executive Information Systems are examples of data-driven DSS (Power, 2002). Initial examples of these systems were called data-oriented DSS, Analysis Information Systems (Alter, 1980) and retrieval-only DSS by Bonczek, Holsapple and Whinston (1981). One of the first data-driven DSS was built using an APL-based software package called AAIMS, An Analytical Information Management System. It was developed from 1970-1974 by Richard Klaas and Charles Weiss at American Airlines (cf. Alter, 1980). As noted previously, in 1979 John Rockarts research stimulated the development of executive information systems (EIS) and executive support systems (ESS). These systems evolved from single user model-driven decision support systems and from the development of relational database products. The first EIS used pre-defined information screens maintained by analysts for senior executives. For example, in the Fall of 1978, development of an EIS called Management Information and Decision Support (MIDS) system began at Lockheed-Georgia (cf., Houdeshel and Watson, 1987). The first EIS were developed in the late 1970s by Northwest Industries and Lockheed who risked being on the bleeding edge of technology . Few even knew about the existence of EIS until John Rockart and Michael Treacys article, The CEO Goes On-line, appeared in the January-February 1982 issue of the Harvard Business Review. (Watson, Houdeshel and Rainer,

1997, p. 6) Watson and colleagues. further note A major contributor to the growth of EIS was the appearance of vendor-supplied EIS software in the mid-1980s. Pilot Softwares Command Center and Comshares Commander EIS made it much easier for firms to develop an EIS by providing capabilities for (relatively) easy screen design, data importation, user-friendly front ends, and access to news services. (p. 6) In a related development in 1984, Teradatas parallel processing relational database management system shipped to customers Wells Fargo and AT&T. Q.6. List the functions of marketing information system. Ans. A marketing information system (MIS) is intended to bring together disparate items of data into a coherent body of information. An MIS is, as will shortly be seen, more than raw data or information suitable for the purposes of decision making. An MIS also provides methods for interpreting the information the MIS provides. Moreover, as Kotler's1 definition says, an MIS is more than a system of data collection or a set of information technologies: "A marketing information system is a continuing and interacting structure of people, equipment and procedures to gather, sort, analyse, evaluate, and distribute pertinent, timely and accurate information for use by marketing decision makers to improve their marketing planning, implementation, and control". the role of the marketing function has been to support make and sell business strategies that emphasized increases in market share over the creation of long-term customer value. This view started to change after World War II with the recognition that satisfying the customers needs and wants should be the focus of a firms business activities. The emphasis on the customer elevated the importance of marketing as a core business function on a par with research and development and production. The marketing function has become the firms window to the world in the sense that it must monitor the marketing environment for changes in buyer behavior, competition, technology, economic conditions, and government policies. Marketing is a strategic function in that marketing activities enable organizations to identify and adapt to changes in the market environment. The strategic function of marketing is further emphasized as Internet-based technologies have enabled radically new approaches to selling where information technology for the first time touches customers and provides new means for collecting marketing information. In a knowledge-intensive economy, the ability to collect, analyze and act upon marketing information more rapidly than the competition is the core competency from which competitive advantage flows. Marketing information systems provide the information technology backbone for the marketing organizations strategic operations. In a broader sense, the MkIS creates an organized and timely flow of information required by marketing decision makers. It involves the equipment, software, databases, and also the procedures, methodologies and people necessary for the system to meet its organizational objectives. MkIS encompasses a broad spectrum of activities from simple transaction processing complex marketing strategy decision making. C. The Role of the Internet Information technology has transformed how firms conduct business. For example, financial service providers such as banks, stockbrokers and insurance companies could not do business today without their client-server-based information technology. This technology has

long supported marketing activities. However, it is the recent advent of the Internet, and especially the browserbased World Wide Web, which has ignited a revolution in MkISs. The term cybermarketing is often used to describe the Internets convergence of computers, information systems, telecommunications and the customer with the marketing process. Internet marketing is characterized by interactivity, graphical user interfaces, multimedia content, and one-to-one connectivity. Internet technologies are not only providing new ways to reach the customer, but also to enable the reengineering of the entire marketing process and, indeed, the entire enterprise. It is no longer acceptable to view marketing as a standalone activity with lengthy time lapses between product concept, marketing strategy and commercialization. Marketing has become interactive and real time. The rapidly growing field of marketing automation encompasses customer management functions to support ecommerce. As depicted in Figure 2, customer management applications include marketing decision support systems, customer relationship management, sales force automation, customer service and e-commerce activities. These activities are often described as front office customer-oriented activities. Back office enterprise resource planning (ERP) activities include manufacturing, finance and human resources. Supply chain management (SCM) activities encompass electronic procurement, inventory management, quality management and logistics systems to link an organization with its suppliers. These three elements comprise the enterprise information system. Large integrated enterprise software companies such as Oracle, SAP, PeopleSoft, and IBM address all three major applications and they are beginning to use Web-based technologies to redesign business processes throughout the organization. The result is leaner organizations, faster response times, and lower costs. Decisionmakers are able to integrate information from customers, suppliers, and the internal organization to obtain an enterprise-wide view of their ability to develop and execute marketing strategy. Until truly integrated browser-based systems are widely in use, the principal challenge for marketers is to tie e-commerce generated data with legacy information systems in order to create a unified view of each customer. Marketers will need to understand all the various ways that customers are touching the business through existing interfaces and e-commerce. Many of the older interfaces, such as telemarketing centers, point of sale (POS) systems, and the sales force are likely to be supported by legacy client-server technology. Marketers need to consolidate data from those systems with that from the Web-based ecommerce sources into a holistic view of the customer and make it available to decisionmakers.