Marketing Management

Q.1 A. Explain the six criteria for effective market segmentation Answer: An ideal market segment meets all of the following criteria: It is possible to measure It must be large enough to earn profit It must be stable enough that it does not vanish after some time It is possible to reach potential customers via the organization's promotion and distribution channel It is internally homogeneous (potential customers in the same segment prefer the same product qualities) It is externally heterogeneous, that is, potential customers from different segments have different quality preferences It responds consistently to a given market stimulus It can be reached by market intervention in a cost-effective manner It is useful in deciding on the marketing mix Basis for segmenting consumer market 1. Geographic segmentation The market is segmented according to geographic criterianations, states, regions, countries, cities, neighborhoods, or zip codes. Geo-cluster approach combines demographic data with geographic data to create a more accurate profile of specific. With respect to region, in rainy regions you can sell things like raincoats, umbrellas and gumboots. In hot regions you can sell summer wear. In cold regions you can sell warm clothes.

2. Psychographic segmentation Psychographics is the science of using psychology and demographics to better understand consumers. Psychographic segmentation: consumers are divided according to their lifestyle, personality, values and social class. Consumers within the same demographic group can exhibit very different psychographic profiles. Consumers who belong to the upper crust of the society prefer products that spell luxury and which upholds their class, status, social standing etc. 3. Positive market segmentation Market segmenting is dividing the market into groups of individual markets with similar wants or needs that a company divides into distinct groups which have distinct needs, wants, behavior or which might want different products and services. Broadly, markets can be divided according to a number of general criteria, such as by industry or public versus private. Although industrial market segmentation is quite different from consumer market segmentation, both have similar objectives. All of these methods of segmentation are merely proxies for true segments, which don't always fit into convenient demographic boundaries. This part of the segmentation process consists of drawing up a perceptual map, which highlights rival goods within one's industry according to perceived quality and price. After the perceptual map has been devised, a firm would consider the marketing communications mix best suited to the product in question.

4. Behavioral segmentation In behavioral segmentation, consumers are divided into groups according to their knowledge of, attitude towards, use of or response to a product. It is actually based on the behavior of the consumer.

5. Occasions Segmentation according to occasions is based on the arising of special need and desires in consumers at various occasions. For example, for products that will be used in relation with a certain holiday. Products such as Christmas decorations or Diwali lamps are marketed almost exclusively in the time leading up to the related event, and will not generally be available all year round. Another type of occasional market segments are people preparing for their wedding or a funeral, occasions that only occurs a few times in a persons lifetime but happens so often in a large population that it can be considered a market segment.

6. Benefits Segmentation takes place according to benefits sought by the consumer or which the product/service can provide. Using segmentation in customer retention: Is this customer at high risk of canceling the company's service? One of the most common indicators of high-risk customers is a drop off in usage of the company's service. For example, in the credit card industry this could be signaled through a customer's decline in spending on his or her card. Is this customer worth retaining? This determination boils down to whether the post-retention profit generated from the customer is predicted to be greater than the cost incurred to retain the customer. What retention tactics should be used to retain this customer? For customers who are deemed worthy of saving, it is essential for the company to know which save tactics are most likely to be successful. Tactics commonly used range from providing special customer discounts to sending customers communications that reinforce the value proposition of the given service. Niche marketing A niche is a more narrowly defined customer group who seek a distinct set of benefits. Identified by dividing a segment into sub segments, distinct and unique set of needs, requires specialization, and is not likely to attract too many competitors. Local marketing Marketing programs tailored to the needs of local customer groups.

B. Discuss the types of target marketing strategies. Target marketing for your small business is the product of extensive research into your consumer base and the needs of the local market. There are several types of target marketing your company may take advantage of depending on how you wish to generate interest with consumers. Combining a couple strategies can garner more attention from a wider base of potential customers. Age Target Marketing Targeting a product to a particular age group or generational cohort is a way to concentrate your marketing efforts and generate product interest within that particular group. According to "Entrepreneurs website, extensive research is necessary for age or generational marketing to determine the status and living situations of consumers in your potential target group. For example, a middle-aged woman in the modern era may still be on the dating circuit and not looking to settle down any time soon just as easily as a woman in the same age group could have a family. Income-Sensitive Marketing Income-sensitive marketing seeks to target your small business's services or products to consumers of particular income and economic status. This strategy also shapes the prices you charge for your goods and services as well as the marketing campaign itself. For example, products marketed to consumers with higher incomes will usually have higher prices while those products marketed to consumers with lower incomes will usually have correspondingly lower prices. This allows more consumers in your target market group to afford your products.

Gender-Specific Marketing Gender-specific marketing shapes an advertising campaign toward one gender or specific group within that gender. For example, target marketing toward pregnant women seeks to generate more interest in your small business's goods and services within that particular group. How your small business accomplishes this task depends on the outcome of your market research and gender needs within your local marketplace. This research may influence the types of images, colors and language you use in your marketing campaign to attract your target gender or gender group to your company's products or services. Geographic Target Marketing Geographic areas across the country have different product needs. Targeting a marketing campaign to meet the signature geographic demands of consumers in your marketplace can boost your company's importance and necessity in the minds of consumers. This strategy also works with seasonal marketing campaigns to take advantage of shifting consumer moods as the weather turns hot or cold. For example, many beverage companies roll out pumpkin-flavored hot drinks during the fall to catch consumers turning attention toward Thanksgiving and colder weather.

1. Single Segment Strategy: This strategy involves the use of only one marketing mix for one market segment. Usually small scale companies with limited budget and resources opt for this form of target marketing strategy. 2. Selective Specialization Strategy: In this strategy, several marketing mixes are implemented in different segments. The same product is marketed differently in different segments, which is why this target marketing strategy is also known as differentiated strategy. 3. Product Specialization: The product manufactured is customized and then marketed, so as to cater to different market segments. 4. Market Specialization Strategy: In this form of target marketing, the company first finalizes the market segment they wish to cater to and then manufacture a variety of products exclusively for this segment. 5. Full Market Coverage Strategy: The company uses this strategy when they wish to serve the mass market. This means a single marketing mix combination can be used or even several marketing mixes are used to cater to segments made in this entire market.

Q.2 Explain the consumer buying decision process Buyer decision processes are the decision making processes undertaken by consumers in regard to a potential market transaction before, during, and after the purchase of a product or service. More generally, decision making is the cognitive process of selecting a course of action from among multiple alternatives. Common examples include hopping and deciding what to eat. Decision making is said to be a psychological construct. This means that although we can never "see" a decision, we can infer from observable behavior that a decision has been made. Therefore we conclude that a psychological event that we call "decision making" has occurred. It is a construction that imputes commitment to action. That is, based on observable actions, we assume that people have made a commitment to effect the action. In general there are three ways of analyzing consumer buying decisions.

Economic models - These models are largely quantitative and are based on the assumptions of rationality and near perfect knowledge. The consumer is seen to maximize their utility. See consumer theory. Game theory can also be used in some circumstances. Psychological models - These models concentrate on psychological and cognitive processes such as motivation and need recognition. They are qualitative rather than quantitative and build on sociological factors like cultural influences and family influences. Consumer behavior models - These are practical models used by marketers. They typically blend both economic and psychological models.

Consumer buying decision process; Five stages comprise the consumer buying decision process; 1. Information Search Customers in the information search stage of the buying process look for solutions to their problems or needs. They remember what types of purchases solved a similar problem in the past. Customers also discuss their needs with friends and relatives to see what solutions they may suggest. For more expensive purchases, customers may read reviews, look through newspapers or research the product online. 2. Alternative Evaluation Consumers evaluate their purchase options based on product attributes, such as technical specifications, through subjective factors, such as brands, and through personal experience, such as sampling or testing products. Consumer and company reviews can influence a consumer's product evaluation. 3. Purchase Decision A consumer's decision to purchase something includes where to buy, when to buy and whether to buy. For routine goods such as groceries, consumers may simply go to their favorite grocery store, but for electronic purchases, they may browse multiple stores. They will evaluate each merchant based on prior experience with the store, special offers and whether they can return the product easily. A store that's visually appealing, has helpful sales associates and offers specials and discounts influences a buyer.

4. Post-Purchase Behavior After making a purchase, a consumer mentally ranks her purchase satisfaction. She will evaluate if she liked the store, if she enjoys the product and the quality of the product. This evaluation determines whether the customer will purchase the product or brand again and whether it would be from the same store. Customers, who are happy with their purchases and feel they received a quality product at a good price, will become repeat customers and will tell others about their experience.

Q.3 A. Discuss the Henry Assael model on buying decision behavior. Consumer's buying decision model is a series of five simple steps consumer takes during its pursuit of product or service. 1. Problems recognition: Consumer identifies the needs or his/her own product requirements. In this process his personality, environment, surrounding, economy may influence. Say, person is hungry and he identifies his food requirements as basic problem to be solved with a certain amount of money may be as little as $5. 2. Information Search: In second step consumer searches for the available sources that can offer him the desired quantity and quality of food. He keeps in mind, his status, his economy y and his physiological needs of course. At this stage consumer collects maximum information necessary for making a decision. Here consumer tries to find out what type of food out lets, stores and options are available. A kiosk selling burgers, McDonald's outlet, and Walls ice cream parlor can be the few alternatives he could find. 3. Evaluation of Alternatives: Next step is processing this collected data of various alternatives. Here a consumer compares available alternatives with need and money he has. This process of evaluation may be influenced by various personal, social, or psychological factors like; family, friends, personal experiences, likes and dislikes. 4. Purchase Decision: Now customer in consumer market is able to make a right choice. Consumer makes a decision and purchase the type of food he thinks more suitable at that situation. Here consumer makes the decision and may go to McDonald as consumers thinks its not a good time for ice cream and kiosk burgers are not of good quality. 5. Post Purchase Behaviour: PPB is the response or reaction of consumer. Consumer will show a positive response if product meets his perception and he feels good about the product. Otherwise, response will be bad and consumer will do advocacy against the product. 7 Os framework Occupants Objects Objectives Organizations Operations Occasions Outlets

Buyer characteristics: Culture Culture Subculture Social class Social Reference groups Family Roles and statuses Personal Age and life cycle stage Occupation Economic circumstances Lifestyle Personality & self-concept Psychological Motivation Perception Learning Beliefs & attitudes

B. Explain the five stages of Adoption Process. Diffusion of an innovation is usually considered to occur through a five step process. The five stages (steps) in the adoption process are: knowledge, persuasion, decision, implementation and confirmation. 1. Knowledge During this stage the individual is first exposed to an innovation but lacks information about the innovation. A sexually active adolescent called Ermas hears or is told about condoms for the first time, but doesnt know much about the subject. 2. Persuasion At this stage the individual is interested in the innovation and actively seeks information and more details about the innovation. Ermas becomes interested in condoms and tries to find out more information about condoms and how he should use them. 3. Decision In this stage the individual takes the concept of the innovation and weighs the advantages and disadvantages of using the innovation and then decides whether to adopt or reject the innovation. Based on the information he has found out about condoms and considering his own situation, Ermias has decided to use condoms. 4. Implementation During this stage the individual determines the usefulness of the innovation and may search for further information about it. Ermas has used condoms and he has appreciated the usefulness of condoms for his own situation. There will be benefits for him if he continues to use them. 5. Confirmation In this stage the individual finalises their decision to continue using the innovation and may use the innovation to its fullest potential.

Q.4 Describe the components of the micro environment of marketing Micro environment The microenvironment consists of five components. The first is the organizations internal environmentits several departments and management levelsas it affects marketing management's decision making. The second component includes the marketing channel firms that cooperate to create value: the suppliers and marketing intermediaries (middlemen, physical distribution firms, marketing-service agencies, financial intermediaries). The third component consists of the five types of markets in which the organization can sell: the consumer, producer, reseller, government, and international markets. The fourth component consists of the competitors facing the organization. The fifth component consists of all the publics that have an actual or potential interest in or impact on the organizations ability to achieve its objectives: financial, media, government, citizen action, and local, general, and internal publics. So the microenvironment consists of six forces close to the company that affect its ability to serve its customers: a. The company itself (including departments). b. Suppliers. c. Marketing channel firms (intermediaries). d. Customer markets. e. Competitors. f. Publics.

The Companys Microenvironment As discussed earlier the companys microenvironment consists of six forces that affect its ability to serve its customers. The first force is the company itself and the role it plays in the microenvironment. This could be deemed the internal environment. 1) Top management is responsible for setting the companys mission, objectives, broad strategies, and policies. 2) Marketing managers must make decisions within the parameters established by top management. 3) Marketing managers must also work closely with other company departments. Areas such as finance, R & D, purchasing, manufacturing, and accounting all produce better results when aligned by common objectives and goals. All departments must think consumer if the firm is to be successful. The goal is to provide superior customer value and satisfaction. Suppliers Suppliers are firms and individuals that provide the resources needed by the company and its competitors to produce goods and services. They are an important link in the companys overall customer value delivery

system. 1) One consideration is to watch supply availability (such as supply shortages). 2) Another point of concern is the monitoring of price trends of key inputs. Rising supply costs must be carefully monitored. Marketing Intermediaries Marketing intermediaries are firms that help the company to promote, sell, and distribute its goods to final buyers. 1).Resellers is distribution channel firms that help the company find customers or make sales to them. 2).These includes wholesalers and retailers who buy and resell merchandise. 3). Resellers often perform important functions more cheaply than the company can perform itself. However, seeking and working with resellers is not easy because of the power that some demand and use. Physical distribution firms help the company to stock and move goods from their points of origin to their destinations. Examples would be warehouses (that store and protect goods before they move to the next destination). Marketing service agencies (such as marketing research firms, advertising agencies, media firms, etc.) help the company target and promote its products. Financial intermediaries (such as banks, credit companies, insurance companies, etc.) help finance transactions and insure against risks. Customers The company must study its customer markets closely since each market has its own special characteristics. These markets normally include: 1). Consumer markets (individuals and households that buy goods and services for personal consumption). 2). Business markets (buy goods and services for further processing or for use in their production process). 3).Reseller markets (buy goods and services in order to resell them at a profit). 4). Government markets (agencies that buy goods and services in order to produce public services or transfer them to those that need them). 5).International markets (buyers of all types in foreign countries). Competitors Every company faces a wide range of competitors. A company must secure a strategic advantage over competitors by positioning their offerings to be successful in the marketplace. No single competitive strategy is best for all companies. Publics A public is any group that has an actual or potential interest in or impact on an organizations ability to achieve its objectives. A company should prepare a marketing plan for all of their major publics as well as their customer markets. Generally, publics can be identified as being:

1).Financial publics--influence the companys ability to obtain funds. 2).Media publics--carry news, features, and editorial opinion. 3).Government publics--take developments into account. 4).Citizen-action publics--a companys decisions are often questioned by consumer organizations. 5).Local publics--includes neighborhood residents and community organizations. 6).General publics--a company must be concerned about the general publics attitude toward its products and services. 7). Internal publics--workers, managers, volunteers, and the board of directors.

Q.5 a. Explain the types of Marketing Information systems An information system is a collection of hardware, software, data, people and procedures that are designed to generate information that supports the day-to-day, short-range, and long-range activities of users in an organization. Information systems generally are classified into five categories: office information systems, transaction processing systems, management information systems, decision support systems, and expert systems. The following sections present each of these information systems. 1. Office Information Systems An office information system, or OIS (pronounced oh-eye-ess), is an information system that uses hardware, software and networks to enhance work flow and facilitate communications among employees. Win an office information system, also described as office automation; employees perform tasks electronically using computers and other electronic devices, instead of manually. With an office information system, for example, a registration department might post the class schedule on the Internet and e-mail students when the schedule is updated. In a manual system, the registration department would photocopy the schedule and mail it to each students house. An office information system supports a range of business office activities such as creating and distributing graphics and/or documents, sending messages, scheduling, and accounting. All levels of users from executive management to no management employees utilize and benefit from the features of an OIS. The software an office information system uses to support these activities include word processing, spreadsheets, databases, presentation graphics, e-mail, Web browsers, Web page authoring, personal information management, and groupware. Office information systems use communications technology such as voice mail, facsimile (fax), videoconferencing, and electronic data interchange (EDI) for the electronic exchange of text, graphics, audio, and video. An office information system also uses a variety of hardware, including computers equipped with modems, video cameras, speakers, and microphones; scanners; and fax machines. 2. Transaction Processing Systems A transaction processing system (TPS) is an information system that captures and processes data generated during an organizations day-to-day transactions. A transaction is a business activity such as a deposit, payment, order or reservation. Clerical staff typically performs the activities associated with transaction processing, which include the following: 1. Recording a business activity such as a students registration, a customers order, an employees timecard or a clients payment. 2. Confirming an action or triggering a response, such as printing a students schedule, sending a thank-you note to a customer, generating an employees paycheck or issuing a receipt to a client. 3. Maintaining data, which involves adding new data, changing existing data, or removing unwanted data. Transaction processing systems were among the first computerized systems developed to process business data a function originally called data processing. Usually, the TPS computerized an existing manual system to allow for faster processing, reduced clerical costs and improved customer service. The first transaction processing systems usually used batch processing. With batch processing, transaction data is collected over a period of time and all transactions are processed later, as a group. As computers became more powerful, system developers built online transaction processing systems. With online transaction processing (OLTP) the computer processes transactions as they are entered. When you register for classes, your school probably uses OLTP. The registration administrative assistant enters your desired schedule and the computer immediately prints your statement of classes. The invoices, however, often are printed using batch processing, meaning all student invoices are printed and mailed at a later date.

3. Management Information Systems While computers were ideal for routine transaction processing, managers soon reali zed that the computers capability of performing rapid calculations and data comparisons could produce meaningful information for management. Management information systems thus evolved out of transaction processing systems. A management information system, or MIS (pronounced em-eye-ess), is an information system that generates accurate, timely and organized information so managers and other users can make decisions, solve problems, supervise activities, and track progress. Because it generates reports on a regular basis, a management information system sometimes is called a management reporting system (MRS). Management information systems often are integrated with transaction processing systems. To process a sales order, for example, the transaction processing system records the sale, updates the customers account balance, and makes a deduction from inventory. Using this information, the related management information system can produce reports that recap daily sales activities; list customers with past due account balances; graph slow or fast selling products; and highlight inventory items that need reordering. A management information system focuses on generating information that management and other users need to perform their jobs. An MIS generates three basic types of information: detailed, summary and exception. Detailed information typically confirms transaction processing activities. A Detailed Order Report is an example of a detail report. Summary information consolidates data into a format that an individual can review quickly and easily. To help synopsize information, a summary report typically contains totals, tables, or graphs. An Inventory Summary Report is an example of a summary report. Exception information filters data to report information that is outside of a normal condition. These conditions, called the exception criteria, define the range of what is considered normal activity or status. An example of an exception report is an Inventory Exception Report is an Inventory Exception Report that notifies the purchasing department of items it needs to reorder. Exception reports help managers save time because they do not have to search through a detailed report for exceptions. Instead, an exception report brings exceptions to th e managers attention in an easily identifiable form. Exception reports thus help them focus on situations that require immediate decisions or actions. 4. Decision Support Systems Transaction processing and management information systems provide information on a regular basis. Frequently, however, users need information not provided in these reports to help them make decisions. A sales manager, for example, might need to determine how high to set yearly sales quotas based on increased sales and lowered product costs. Decision support systems help provide information to support such decisions. A decision support system (DSS) is an information system designed to help users reach a decision when a decision-making situation arises. A variety of DSSs exist to help with a range of decisions. A decision support system uses data from internal and/or external sources. Internal sources of data might include sales, manufacturing, inventory, or financial data from an organizations database. Data from external sources could include interest rates, population trends, and costs of new housing construction or raw material pricing. Users of a DSS, often managers, can manipulate the data used in the DSS to help with decisions. Some decision support systems include query language, statistical analysis capabilities, spreadsheets, and graphics that help you extract data and evaluate the results. Some decision support systems also include capabilities that allow you to create a model of the factors affecting a decision. A simple model for determining the best product price, for example, would include factors for the expected sales volume at each price level. With the model, you can ask what-if questions by changing one or more of the factors and viewing the projected results. Many people use application software packages to perform DSS functions. Using spreadsheet software, for example, you can complete simple modeling tasks or what-if scenarios. A special type of DSS, called an executive information system (EIS), is designed to support the information needs of executive management. Information in an EIS is presented in charts and tables that show trends,

ratios, and other managerial statistics. Because executives usually focus on strategic issues, EISs rely on external data sources such as the Dow Jones News/Retrieval service or the Internet. These external data sources can provide current information on interest rates, commodity prices, and other leading economic indicators. To store all the necessary decision-making data, DSSs or EISs often use extremely large databases, called data warehouses. A data warehouse stores and manages the data required to analyze historical and current business circumstances. 5. Expert Systems An expert system is an information system that captures and stores the knowledge of human experts and then imitates human reasoning and decision-making processes for those who have less expertise. Expert systems are composed of two main components: a knowledge base and inference rules. A knowledge base is the combined subject knowledge and experiences of the human experts. The inference rules are a set of logical judgments applied to the knowledge base each time a user describes a situation to the expert system. Although expert systems can help decision-making at any level in an organization, no management employees are the primary users who utilize them to help with job-related decisions. Expert systems also successfully have resolved such diverse problems as diagnosing illnesses, searching for oil and making soup. Expert systems are one part of an exciting branch of computer science called artificial intelligence. Artificial intelligence (AI) is the application of human intelligence to computers. AI technology can sense your actions and, based on logical assumptions and prior experience, will take the appropriate action to complete the task. AI has a variety of capabilities, including speech recognition, logical reasoning, and creative responses. Experts predict that AI eventually will be incorporated into most computer systems and many individual software applications. Many word processing programs already include speech recognition. 5. Integrated Information Systems With todays sophisticated hardware, software and communications technologies, it often is difficult to classify a system as belonging uniquely to one of the five information system types discussed. Much of todays application software supports transaction processing and generates management information. Other applications provide transaction processing, management information, and decision support.

b. Discuss the different components of MIS MIS is a system or process that consists of people, machines, procedures, data methods and database as the elements of the system. Different components of MIS are discussed following; 1). Hardware: The hardware component of MIS means all the input and output devices that help the feeling and displaying the information as per requirement. Different input devices are keyboard, scanners and mouse etc. The output devices are monitor, printer, network devices etc. Hardware devices are the physical parts of MIS. These can help in maintaining the data of business. 2). Software: Softwares are the programmers and applications which convert machine into readable language. Different softwares generally used for processing the information of an organization are ERP and CRP, ERP is software package that combines all data and processes of an organization. In order to achieve the integration, it uses multiple components of computer software as well as hardware. Advantage of ERP system is that it uses a single, unified database to store data for various systems. Under ERP system all functions of an organization

can be controlled. On the other hand, ORM is a software package which includes the capabilities, methodologies and technologies to support an organization in managing the relationship with customers. ORM can enable the organization to manage their customers through the introduction of reliable systems, processes and procedures. 3). Procedures: Procedure implies a set of sales and guideline, which are established by an organization for the use of a computer based information system, Procedure depends on the nature and purpose of the organization. So procedures are different for different organizations. Moreover, it may vary from one department to another department according to requirement. As for example, production department requires information on raw materials, quality of goods etc. But the sales department requires information on quality of goods to be sold, the expenditure of sale etc. So, different departments have to set their procedures in different ways so that the MIS can help in retrieving the information as per requirement of a particular department. 4). Personnel: Different personnel of MIS are computer experts, managers, users of computer based information system. Majority of the personnel use the computer based information for preparing plans and programmers, rules and regulations, and for taking different decisions. An organization Information System is the process of collecting data and information and storing the collection to retrieve the same according to requirement. MIS is needed for different activities or departments of an organization for their respective purposes, which is discussed as below: 1. Personnel Department: The main function of personnel department is to provide suitable staff as per demand of the organization from time to time. The application of MIS for personnel department consists of different forms or documents, which are known as inputs. These inputs are; Personnel application form Appointment letter Attendance and leave record. Bio-data or C.V Appraisal form Production/ Productivity data on the jobs Wages/ Salary agreement. Record of complaints, grievances, accidents Industry data on wage / Salary structure Industry data on manpower, skill, qualifications Record of sources of manpower - university, institutions, recruitment agencies.

Record on manpower application trend in view of mechanization, automation and computerization. Different aspects of personnel management which are applied and analyzed in MIS are : Attendance, Manpower, Leave, Salary, Wages, Statutory deduction, Loan and deductions, Accidents, Production data, Skills, Bio-data, Family data etc. 2. Finance Department: The main functions of the finance department are estimating, distribution and utilization of fund of an organization. For this purpose financial management uses different tools such as Breakeven analysis, Cost analysis, Cash flow projections, Ratio analysis, Capital Budgeting, Management accounting, financial modeling etc. Various forms of inputs available in financial management are Payment, Receipts and Data from stock exchange. In order to take different financial decisions, following are applied in MIS-Cash flow analysis, Debtors analysis, Creditors analysis, Sources and uses of funds, Budget analysis.

3. Production department: Generally the Production department is supported by the following systems Production planning & control Industrial engineering Maintenance and quality control Material management.

Different documents used in MIS by the Production department are; Production Programmer Production Schedule Process planning sheet Job Card Quality assurance rating form Material requirement Breakdown advice Material requisition Customer order

Production management involves various support systems for the MIS. There are production planning and control, bill of material processing drawings and process planning, scheduling and monitoring system etc. 4. Marketing Department: The main purpose of marketing department is to sell and distribute the goods for the customers highest satisfaction. In MIS, different documents of marketing department are used, such as customer order, order acceptance, delivery note, invoice, credit and debit note etc. Different decisions to be taken by the marketing department are price, allocation of stock, discount, commission, packing, distribution channels etc.

Q.6 Describe the factors to be considered while developing an Effective marketing mix. History of the Four Ps In order to fully understand the 4 Ps, its important to understand the history behind their development. It all started with the term marketing mix. In the 1940s, James Culliton described the position of marketing manager as someone who is a mixer of ingredients. More than a decade later, Neil H. Borden published an article The Concept of the Marketing Mix, which was an adaptation of Cullitons original theory. The marketing mix included product pricing, planning, branding, distribution channels, advertising, promotions, personal selling, packaging, display, servicing, physical handling, and fact finding and analysis. It wasnt until E. Jerome McCarthy grouped each aspect into four categories, or the 4 Ps of marketing. What are the Four Ps? Price The first of the four Ps is price. From the manufacturer to the customer, price must be thoroughly examined all the way through the buying/purchasing process. Make sure you consider everything that the price of a product entails; variables that affect price include distribution, location of distribution, the retailers price mark -up, competitor pricing and payment plans. Product The second of the 4 Ps is product. In determining the product, you must ask pertinent questio ns to further understand the product that you want to sell. For example, What problem will this product solve? or What will be the features and benefits of this product? You must determine how your product is unique to the market and who is most likely to purchase the product. One important note: make sure you address the features that arent found in this product. No one product can do everything, so narrow down the features and benefits as well as what the product is lacking. Promotion The third P is promotion. How are you going to promote this product? Whether its through web promotions, traditional advertising, event marketing or another tactic, you need to make sure that your marketing strategy is appropriate for the product, price and customer. An inadequate promotional initiative can waste time and revenue. Placement The fourth and final P is placement. Placement clarifies where a product will be sold. Will it be available in both brick-and-mortar retailers and through online merchants? It is important to figure out if product is suited for the placement that youve selected. It is also wise to determine an exit strategy if your product does not do well and you need to find a new sales channel. The Purpose of the Four Ps The four Ps are a tried-and-true formula for an effective marketing plan. The reason the 4 Ps were developed decades ago was to determine a specific recipe or marketing mix that will satisfy both the needs of the customer and the retailers needs. This recipe has proven to be successful when properly determined and utilized.

Creating an Effective Modern Marketing Mix There was a time when the best marketing campaigns were simply a combination of print, broadcast and out-ofhome media campaigns. However, traditional marketing and advertising efforts arent really sufficient in the modern world for companies that truly want to maximize their sales and customer relationship building opportunities. Internet and social media usage behaviors have changed the way that people consume media including information-oriented media and entertainment-oriented media. This means that the way businesses have to reach potential customers has also had to change. In the modern world, effective marketing plans and strategies must combine elements of traditional marketing and search engine marketing. Essential Elements of a Modern Marketing Strategy To create an effective modern marketing strategy, you must recognize more than just the importance of search marketing. You must realize that its an ongoing process that requires consideration of both search engine algorithms and the needs and habits of human beings. Recognize the Process Oriented Nature Search Engine Optimization Its impossible to overstate how important it is to ensure that your website is fully optimized for search engine results. This involves making sure that your site is properly coded for maximum search engine results as well as engaging in effective search engine marketing strategies such as social bookmarking and link building. You must keep up with changes in the search engine space in order to maintain effective search engine optimization for your site and its something that has to be done on an ongoing basis. Consider Consumer Behavior and Media Consumption Habits In order to effectively engage in marketing today, its essential to really consider where your consumers are so that you can get your messages in front of the right people at the right time in the right setting. For example, thats why MySpace is an important part of any plan focused on search engine optimization and music. While not every business needs a presence on MySpace, bands, record labels and others in the music industry certainly do, because of the nature of the site and the needs and expectations of consumers who choose to engage with the website? This isnt the only way to reach music consumers, but its certainly an important one. Always Focus on Learning Keeping up with modern marketing strategies requires continuous learning. To enjoy success from your marketing efforts, youll need to continually learn and grow in terms of your knowledge and expertise specific to creating the perfect blend of traditional and modern marketing strategies and techniques.