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IMT-135: Marketing Management-I-MT1

IMT-135: Marketing Management-I-MT1

IMT-135: Marketing Management - I


Part - A

Q1. Marketing orientation of a firm directs the type of marketing activities an organization engages into. Elaborate this statement in the light of Marketing and sales orientation

Q2. What is micro environment? How it effects an organization? Elaborate with examples.

Q3. Explain how social and cultural factors affect consumer behaviour?

Q4. Explain different types Samples one may have for a survey? Which one do you think is best for a research on product perception of X company’s smart phone?

Q5. Discuss demand forecasting methods.



Part - B

Q1. Define the consumer market and construct a simple model of consumer behavior.

Q2. What attribute should a product have for adoption in the market?

Q3. Differentiate between consumer markets and Business market. Can an organization serve both with same marketing tools?

Q4. Name and briefly describe the stages of the business buying process.

Q5. What are the major variables of segmenting consumer markets?


Part - C

Q1. Explain how having a strong completion can benefit a company?

Q2. Compare and contrast undifferentiated, differentiated, concentrated and micromarketing targeting strategies. Which Strategy is best for digital products?

Q3. Name and describe the major steps in New Product development process.

Q4. Name and describe the four stages of Product life cycle, cite examples in each case.

Q5. How brand equity can be developed and managed, discuss with some Indian example.


Case Study - I


Mercedes in India


Berhard Kern succeeds Peter Honegg as the new CEO and managing director of Mercedes-Benz India Limited. Kern is a veteran with Daimler having spent around three decades with them and being on assignments across Asia and other global markets.


On his appointment in India, Eberhard Kern said, I inherit a very strong organization in this market where Mercedes-Benz is held in highest esteem. Our production facility is one of the best in the Mercedes-Benz world; our product line-up is exciting and holds tremendous potential. The new generation cars from the Mercedes stable will, in my opinion, play a pivotal role and our wide network of dealers are poised to support the growth. In short, the fundamentals are strong and we look forward to sustained profitable growth in the next years.


The sustained profitable growth is a problem with India’s original luxury car seller. Since 1996 Mercedes has been trying to establish itself in the country. The German company is facing a tough competition from its arch Rival BMW. Off late Audi has become the most tempting luxury segment brand for neo riches in the country.


The Indian luxury car market segment is facing the heat of the competition with Volkswagen - Audi clearly taking the lead. According to the monthly sales volume figures reported by SIAM for the month of July, Audi sales in India, during Apr - Jul 2012, have zoomed by over 45% visa- vis the corresponding period in the previous years.


Having sold over 2500 units in the first four months of the current fiscal, Audi's market share in the Indian luxury car segment today stands at about 33% against 25% market share commanded by this company a year ago.


This brings Audi extremely close to its archrival - BMW, in terms of market share. Even as BMW continues to lead the luxury car market segment in India, accounting for 36% of this market, there has been a huge drop in its market share, which was over 45% during Apr - Jul '2011. The company's sales volumes in the first four months have dipped by about 14% vis-a-vis the corresponding period in the previous year. The biggest loser in this luxury car segment is however Mercedes Benz that sold about 24% less units in the first four months of 2012-13 as compared to 2011-12 fiscal. Resultantly, the market share of Mercedes has declined sharply from 30% to 21% in the span of one year, placing at the third position from second until a year ago.


These results are highly disheartening for Mercedes, which despite being high on brand awareness , and great trust for the product is not able to garner youth as its buyers , The research reports have stated that Mercedes is more popular among senior executives in the 46-60 age bracket, while the younger buyers have opted for the BMWs and the Audis. Mercedes Benz’ commitment to regain market share and counter this image perception is illustrated by company’s plan to launch the B-Class Sports Tourer, which will hold the title of the company’s first entry-level model in the Indian market to compete with Audi Q3 and the BMW X1, in terms of price. The B-class, which will be similar to that of an oversized hatchback, will be priced below Mercedes’ current entry level C-Class, which retails at upwards of Rs 28.3.


This will be followed by the launch of the A Class next year, which would be the smallest in the Mercedes brand range worldwide. The A Class, however, will be one of the most expensive compact cars in India — next only to the Fiat 500 and the Volkswagen Beetle. Experts say going down the price ladder is a move that Mercedes should have taken long ago. For proof, consider the success of Audi Q3, which is an entry-level crossover.


Mercedes, however, doesn’t want to read too much into the pricing and market share game and accuses its competitors of offering huge discounts to shore up volumes and gain market share. Debashis Mitra, director, sales and marketing, Mercedes-Benz India, says, “Price is not a strategy, it’s a tool. You play it too hard and that becomes a benchmark to get one level lower. A luxury SUV from one of the companies is sold at a discount of Rs 4 lakh. This SUV constitutes more than a fifth of its sales”. Competitors, predictably, dismiss such claims.


The market for luxury cars in India now is 22,000-23,000 per annum, growing more than 20 per cent annually barring the last year. But this is just one per cent of the total Indian car market, way less than the ratio in its home country, Germany, at 15 per cent and China at 4 per cent. But the potential for growth is something that gives Mercedes hope. “When the Indian car market doubles in the next five to six years to five million units and even if the share of luxury cars stays the same, we are expecting doubling of volumes from here”, says Mitra. Apart from newer and cheaper models, Mercedes is also exploring markets beyond the four metros to the towns that would be the “growth engines of the future”.


That explains its frequent roadshows in places such as Nellore, Jabalpur, Raipur and Karnal to gauge customer response. If it finds the demand robust, the company sets up full-fledged dealerships. Several of its new sales outlets have come up in Tier II areas following greater demand.


But it’s a game being played by BMW and Audi, too. Michael Perschke, Head, Audi India, says, “Our focus now is on Tier-II & Tier-III cities, which are showing a healthy appetite for luxury cars. In the past few months, we have opened new showrooms in Bhopal, Ludhiana, Surat, Indore, Nagpur and Coimbatore and will add several more in the months to come”. The great Indian luxury car race is, thus, going to be tougher for players like Mercedes.


Answer the following questions

Q1. Where do you think Mercedes could not compete?

Q2. Do you think Mercedes can make a comeback? Justify your answer.

Q3. Suggest strategic options for Mercedes.


Case Study - II


Vodafone and Social Media Network


Social Media Network (SMN )has become one of the most prominent medias for word of mouth publicity . Organizations’ lay specific budget for marketing on SMN and regularly monitors it for the best utilization of media.


In June 2011, Mobile service provider Vodafone Essar has sent a legal notice to Dhaval Valia, one of its customers, alleging that he made defamatory statements against the company on Facebook, troubled senior officers, including a female officer through texts and calls, and posted names and contact details of two senior officers, reports In the notice, Vodafone has asked Valia to stop calling Vodafone officials, and making defamatory statements. He has been asked to remove his Facebook posts in 48 hours, warning him that the failure to comply will lead to Vodafone initiating civil and criminal proceedings, the cost of which would have to be borne by Valia.


The cause for this dispute was, allegedly, Vodafone’s inability to offer 3G services in the area where Valia resides, since Valia ported to Vodafone from Loop Mobile for this very reason.


Also, it appears that Vodafone billed him for 3G data, and later waived off the charges on his repeated requests. Although, Vodafone advertises 3G services aggressively, its coverage of many cities including Delhi and Mumbai is not complete. Till a few days back, 3G was only available in South, Central and Gurgaon regions of NCR/Delhi. However, if a customer activates a 3G plan and uses data in areas where 3G coverage is not available, he is charged as per 3G tariffs, which are more expensive than 2.5G/Edge.


Because of this legal notice it became a viral fever on internet and other customers also pored in posting complaints about Vodafone and vehemently criticizing firm for the legal notice being sent to a customer. Ultimately after a couple of days Vodafone withdrew the legal notice in good faith.


Answer the following questions

Q1. How can social media be used effectively by firms apart fron using it as an advertising tool.

Q2. Suggest how marketing managers at Vadafone should have handled this situation.

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