Internal Assessments

Program – MBA

Subject – Quantitative Technique

Assessment Type – Internal Assessment (Subjective

Assignment)

Total Marks - 100

Questions:
1. How social marketing plays a key role in preserving the consumer
and society’s well-being?
Ans. Societal duty of advertising is a marketing idea that holds that a agency have to
make advertising selections no longer simplest by using considering customers'
wishes, the corporation's requirements, however additionally society's long-term
pastimes. The societal advertising concept holds that the agency's assignment is to
decide the wishes, needs, and pursuits of a target market and to supply the preferred
satisfactions greater efficaciously and successfully than competition in a manner that
preserves or enhances the properly-being of both the individual consumer and society
in general. Therefore, marketers must undertake to fulfill the needs and wants in their
target markets in ways that keep and decorate the properly-being of customers and
society as an entire. It is intently related with the principles of corporate social
obligation and of sustainable development. The societal advertising concept adopts
the position that entrepreneurs have a greater social responsibility than sincerely
gratifying clients and offering them with advanced value. Instead, advertising sports
must attempt to advantage society's overall well-being. Marketing enterprises which
have embraced the societal advertising concept typically perceive key stakeholder
companies such as: personnel, customers, nearby communities, the broader public and
authorities and recall the impact of their sports on all stakeholders. They make certain
that advertising and marketing activities do not damage the surroundings and are not
unsafe to broader society. Societal marketing advanced into sustainable advertising.
Societal advertising calls for organizations to consist of social, moral and ecological
issues in product and marketplace making plans.
2. How do political, social and environmental factors contribute to
opening new segments of a market?

Ans. 1. Segmentation: market, aggressive, political, and environmental elements

concerning advertising!

Segmentation is a method to goal advertising. Target advertising is the choice of

particular segments to serve. A company needs to assess the segments and decide
which ones to serve. In evaluating marketplace segments that can be centered, a
corporation should examine two extensive troubles: (i) the Relative splendor of the
market segments and (ii) the Company’s functionality to compete in diverse
segments.

2. Market Attractiveness:

It is crucial to decide whether it'd be worthwhile to enter a marketplace segment due

to the fact a business enterprise has to dissipate a huge amount of assets in developing
a selected advertising mix for the prospective target segment. The following elements
must be evaluated in finding out whether a specific marketplace phase is worth
pursuing.

3. Market elements:

Analysis of clients and enterprise dynamics are crucial whilst assessing the
attractiveness of the marketplace section. Additionally, the segment length and
increase charge imply the long-time flexibility of serving the section.

4. Competitive elements:

Competition in a segment determines the quantity of resistance confronted via a

business enterprise at the same time as getting into the marketplace. Well entrenched
players could have erected sturdy boundaries to access

I. Nature of opposition:

Companies which might be inclined to innovate so that they're able to serve their
customers higher, pressure their competitors to do the equal. Though competitors
should deplete sources to keep competitive parity, they emerge as more able
organizations and their potential to serve clients improves.
But, while competitors just reduce rate to emerge as more appealing to customers, it is
ruinous to the segment, and competitors need to no longer play the price recreation at
all. They need to as an alternative innovate aggressively to distinguish their offerings
and provide greater fee to clients.

Therefore, ‘price’ competition are usually accurate for a phase, and it's miles the ‘fee’
competition who must be kept away. Depending on the nature of enterprise, excellent
of competition could be related to their length, financial electricity, innovativeness,
technical capability, manufacturing facilities, logo equity, and so forth.

II. New entrants:

When a section is served by technologies which might be ever-changing, it could

always be raided by new entrants with advanced technologies. Such new entrants can
exchange the very basis of opposition within the section. Incumbent gamers hold
music of the evolution of their technologies by using sending their humans to
conferences and research laboratories.

III. Competitive differentiation:

A section is appealing if competition can differentiate their services in approaches that

clients find attractive. Though there are corporations that lend themselves to easy
differentiation, maximum of the time, it's miles companies’ reluctance to play the rate
game, that makes them locate methods to distinguish even in commodity
corporations.

Howsoever intensely aggressive a phase can be, it is usually feasible to differentiate

one’s offerings and win a share of this kind of section. This is dependent upon the
agency figuring out underserved client needs and growing the functionality to meet
those wishes.
3. What are important questions to be asked about customers in
decision-making process?

Ans. Discussion Questions

1. Are there any areas in which you consider yourself an opinion leader? What are
they? How are companies getting information about opinion leaders?

2. What purchasing decisions have you been able to influence in your family and
why? Is marketing to children a good idea? If not, what if one of your competitors
were successful in doing so? Would it change your opinion?

3. Name some products that have led to postpurchase dissonance on your part. Then
categorize them as high- or low-involvement products.

4. Describe the decision process for impulse purchases at the retail level. Would they
be classified as high- or low-involvement purchases?

5. How do you think the manufacturers of products sold through infomercials reduce
postpurchase dissonance?

6. Explain the relationship between extensive, limited, and routine decision making
relative to high- and low-involvement decisions. Identify examples of extensive,
limited, and routine decision making based on your personal consumption
behavior.

7. Why is understanding consumer behavior so important for companies? Think of

examples where you do not think companies understood their consumers.
4. What are the steps involved in demand forecasting?

Ans. These established steps within the call for forecasting system assist agencies
optimize stock & sources, permit higher coordination amongst vertical stakeholders &
improve consumer enjoy main to better emblem fee. So, here are the key steps
worried within the demand forecasting method, which an corporation need to make
sure to plan excellent production & execute operations even higher.

1. Outlining the targets:

The first & important specification to start with is to have clear goals for which call
for forecasting is to be finished. The parameters ought to variety from making plans
long-term or brief-term call for, launching a product to a selected market section,
making plans a fully-fledged unveiling, and gauging the enterprise's market
percentage inside the industry. These objectives help a agency understand the precise
modus operandi, sooner or later leading them to higher evaluate consumer demands
based totally on territories & marketplace reaction to a new product.

2. Timeline of Forecast:

The following step is to determine on the duration of the forecasting manner. The
tenure will be quick (2-3 months) or a yr-lengthy length. Management has to make
certain that the timeline determined very an awful lot regards the character of the
product. For instance, a demand forecasting process concerning perishable objects
(including ingredients and eateries) will have quick-time period forecasting, whereas
stable commodities convey a protracted-time period prospect. Such astute planning
protects an employer from losing its capital & eventually avoids heavy investment in
warehouses & stock.

3. Determinants of call for:

After setting the preliminary parameters of goals & timeline, the next step is
understanding the determinants which pressure the call for. These factors are
influential and directly have an effect on whether or not the product will fare properly
inside the marketplace. These determinants range from the rate of the best, so as to be
finalized, to the median profits of the centered organization, the cutting-edge client
behavior, the market trend, and capability user consumption, which without delay
affect the pricing points of the subjected desirable. An enterprise must have entire
information of the operating determinants immediately influencing its improvement to
have near-accurate call for forecasting for a new product<, particularly long-time
period.

4. Choosing a method for Demand Forecasting:

The initiation of the call for forecasting system starts off evolved primarily based on
the nature of the product. Broadly those strategies are divided into important classes:
statistical & survey methods. A statistical form collects & organizes operating data
applicable to the product type and makes a speciality of identifying trends that sooner
or later assist the forecasting groundwork. In assessment, a survey technique is
predicated on an opinion ballot gauging the contemporary pattern and tapping into the
applicable human psyche, which drives the consumer’s shopping behavior. Each
method has its benefit & it's as much as the stakeholders to pick out which manner
works first-rate for them.

5. Collection & agency of records:

Post the finalization of the technique, the following requirement is to gather pertinent
records. This consists of gathering both primary & secondary records. Primary
statistics is assessed as first-hand statistics not accrued before, whereas secondary
facts is labelled as data already available. Having any such repository gives a agency
a place to begin to devise out its product blueprint & prepare for each planning &
execution.
6. “Demographic characteristics strongly affect buyer behaviour.”
Explain the statement?

Ans. Demographic factors

Demography is the study of people in terms of age, gender, race, ethnicity and
location. Demographics are significant because people constitute markets.
Demographic characteristics strongly affect buyer behaviour. Faster growth of
population accompanied with rising income means expanding markets. The longer
life span means a growing market for products and services targeted at the elderly.

Adolescents

The new-age teens are a marketer's delight. They do not earn, but they are fond of
spending and most of them have their own budgets. They spend lavishly on clothes,
eating out, going out, buying latest gadgets, etc., and are very keen to catch on with
their friends in terms of possessions and lifestyles. They do not feel guilty of spending
their parents' money and put on real pressure on their parents to shell out more money
for them. They will put their parents in financial inconvenience but they will have
their motorbikes and fanciful mobiles, and will hang out at eating joints, theatres and
malls. They are stylish and fashion conscious and submit to peer pressure. They will
latch on to the next hot item. They feel they need to have a life of their own and it
should not be denied to them just because they are not earning.

Youth

Youngsters today are growing in a more media-influenced, brand-conscious world than their
parents did. They respond to advertisements differently and prefer to encounter these
advertisements in different places. Companies have to take their messages to the places where
these youngsters frequent, whether on the Internet, in a cricket stadium or on television. The
advertisements may be comical or disarmingly direct. But the advertisements should never
suggest that the advertiser knows these youngsters better than they know themselves. These
youngsters know what they want from their lives and the products and services they buy.
They do not mind information reaching them but will reserve their right to make their
choices. They hate to be persuaded and influenced. Companies would do well to leave them
alone to make their decisions. They will access and process the desired information
themselves and will let their choice known to the marketers. For these youngsters, anyone can
be a star and most of them count themselves as one. They believe that everyone deserves to
have his say and own space. For them, getting heard and becoming well known are not only
easy, but a natural way to go about with their lives. They create their own websites, make a
movie with their own webcam or digital camera and post their thoughts and pictures online.
Since they are sure about themselves and know what they want, they prefer customized
products and services. Companies are realizing that they have to provide something unique
and deeply personal to win the loyalty of current youngsters.