1. Q.1.Explainthe stages inthe newproduct development process?
Answer:NewProductDevelopment
Newproductsare essentialforexistingfirmstokeepthe momentumandfornew firmstheyprovide
the differentiation.Newproductdoesn’tmeanthatitis absolutelynew tothe world.Itmaybe a
modification,orofferedinanewmarket,ordifferentiatedfromexistingproducts.Therefore itis
necessarytounderstandthe conceptof new products.
Newproductdevelopmentprocess:
Stage 1 - Ideageneration:New productideacanbe generatedeitherfromthe internal sourcesor
external sources.The internalsourcesinclude employeesof the organizationanddatacollected
fromthe market.The external source includescustomers,competitorsandsupplychainmembers.
For example,Ingersoll Randwelcomesnew ideasfromthe General public.
Stage 2-Ideascreening:Organizationmayhave variousideasbutitshouldfindoutwhichof these
ideascan be translatedintoconcepts.Inan interview toTimesof India,Mr.Ratan Tata, chairman
TATA groupdiscussedhowhisideasawmanychangesfromthe basic version.He toldthathe
wantedtodevelopcarwithscooterengine,plasticdoorsetc…But whenhe unveiledthe car,there
were manychangesinthe product. Thisshowsthat initial ideawill be changedonthe basisof
marketrequirements.
Stage 3 - Conceptdevelopment:the mainfeature orthe specificdesire thatitcatersto or the basic
appeal of the product iscreatedor designedinthe conceptdevelopment.
Stage 4 - Concepttesting:Atthisstage conceptistestedwiththe groupof target customers.If any
changesare requiredinthe conceptorthe message itwill be done duringthisstage.Alsothe
effectivenessistestedona minorscale.If the conceptmeetsthe specific requirements,thenitwill
be accepted.
Stage 5 Marketingstrategydevelopment:The marketingstrategydevelopmentinvolvesthree parts.
The firstpart focusesontarget market,sales,marketshare andprofitgoals.TATA’sinitial business
planconsisted salesof 2 lakhscars perannum.The secondpart involvesproductprice,distribution
and marketingbudgetstrategies.TATA’sfixedRs1 lakhsas the car price,andfindingself employed
personswhoworklike agenttodistribute the cars.The final partcontainsmarketingmix strategy
and profitgoals.
Stage 6 - Businessanalysis:itisthe analysisof sales,costsandprofitsestimatedforanew product
and to findoutwhetherthese alignwiththe companymissionandobjectives.

2. Stage 7 - Productdevelopment:duringthisstage,productismade toundergofurther
improvements,new featuresorimprovisedversionsare addedtothe product.There isalso scope
for innovationandusingthe latesttechnologyintothe product.
Stage 8 - Testmarketing:isthe mostcrucial stage forthe testingproduct’sperformanceandits
future inthe market.There are certaincaseswhere producthasfailedinthe testmarketingandhad
to be withdrawn.
– The product isintroducedintothe realisticmarket
– The 4P’s of marketingare tested.
– The cost of testmarketingvarieswiththe type of product.
Stage 9 - Commercialization:Inthisstage productiscompletelyplacedinthe openmarketand
aggressive communicationprogramaccompaniedwithpromotionactivitiesiscarriedoutto support
it.
Q.2.Explainthe steps inmarketing researchprocess?
Quite often,the terms'marketresearch'and'marketingresearch'are wronglyinterpretedand
substitutedforone another.Marketresearch,insimple words,isnothingbutthe research thatis
directedtowardsaveryspecifici.e.particularmarketarea,whereasmarketingresearchhasa much
wider,broaderspectrum.Marketingresearchcanbe furtherexpandedintotwospecificdomains:
consumer-relatedmarketingresearchandbusiness-to-businessmarketing(B2B) research.However,
the basic stepsinvolvedinbothof these typesare generallythe same.
#1: ProblemIdentificationandDefinition
Thisis the introductoryphase of the marketingresearchprocess.Basically,itinvolvesaclearand
precise understandingof the problemathand.Itis crucial that the researchteamidentifies,
understandsanddefinesthe probleminitsentirecapacity,asitaffectsall the subsequentactivities
involvedinthe researchprocess.Researchteamsmake use of customerfeedback,internal and
external datareports,salesgraphs,purchasingpatterns,etc.tocome upwithan accurate problem
definition.
#2: DesigningaProperApproach
The nextstepisto come upwitha near-flawlessapproachwhichisaimedat solvingthe identified
problem.Duringthisprocess,the researchteamhasto analyze andexamine avarietyof factorssuch
as the company'stargets,goalsand objectives,financial resources,skill sets,manpower,industry
environment,changingbusiness trends,etc.Thisphase ofteninvolvesjointdiscussionsbetweenthe
researchteam,industryexpertsandhighermanagement.
#3: Developingthe Actual ResearchDesign
Thisis the decisive step,wherein,the researchdesignisthe veryfulcrumof the entire marketing
researchprocess.The solidityof the researchdesignalonedecidesthe successorfailure of the
researchprogramto a large extent.Naturally,thisstepisthe mosttime-consumingof all the steps

3. and itneedscareful thinkingandprecise execution.Differentactivitiesinvolvedinthisprocess
include feedbackanalysis,qualitative andquantitativeanalysis,preparingquestionnairesaswell as
samplingof dataand processes.
#4: Data CollectionandSurvey
Thisprocessmainlyinvolvesalotof field-relatedworkactivitiessuchasoutdoorinterviews,survey
campaignsandfeedbacksessionswhichare done byspeciallyassigneddatacollectionagentsorfield
agents.Almostall of those doorbell-ringingpamphletguysorthe irritatingtele-callerswho
telephoneatthe mostuntimelyof hours,are data collectionagentswhoare justdoingtheirduty,as
part of theircompany'smarketingresearchprocess.Datacollectionandsurveyingisalso
implementedbymeansof Internetsurveys,groupdiscussions,mailsurveys,etc.
#5: Data Structuringand Analysis
Once the data collectionandsurveyingactivitieshave yieldedsufficientandrelevantdata,itistime
to systematicallyorganize the datasothatit can be interpretedandanalyzedbydecisionmakers.
Thistypicallyinvolvesactivitiessuchasdata mining,clusteringof data,preparingstatistical graphs
and curves,etc.
#6: ReportGenerationandPresentation
All the effortthatgoesintodesigninganapproach,developingaresearchdesign,collectingdataand
finallyanalysingthe data,completelygoeswaste,if the findingsandthe resultsare notpresented
properly.Itisimperative thatthe whole marketingresearchprojectbe properlydocumentedand
accountedfor.The entire purpose of the researchcampaignistoenable the highermanagementto
make informeddecisionswhichwillbenefitthe progressandthe salesof the concernedproductor
service.Hence,itiscrucial that the researchfindingsbe presentedaccurately,clearlyandrelevantly.
For thispurpose,the use of appropriate statistics,graphs,pie-charts,etc.isrecommended.
Q.3. write a short note on
A. Marketing plan
A marketingplanoutlinesthe specificactionsyouintendtocarryout to interestpotential customers
and clientsinyourproductand/orservice andpersuade themtobuythe productand/orservices
youoffer.The marketingplanimplementsyourmarketingstrategy.Or,asI put itin myarticle,"The
Keyto Marketing:Use a Plan","the marketingstrategyprovidesthe goalsforyourmarketingplans.
It tellsyouwhere youwanttogo from here.The marketingplanisthe specificroadmapthat'sgoing
to getyou there."
A marketingplanmaybe developedasa standalone documentoras part of a businessplan.Either
way,the marketingplanisa blueprintforcommunicatingthe valueof yourproductsand/orservices
to yourcustomers.
B. Marketing planning process
1. Determinationof Organizational Objective

4. The basic objectives,orgoals,of the organizationare the startingpointformarketingplanning.They
serve asthe foundationfromwhichmarketingobjectivesandplansare built.These objectives
provide directionforall phasesof the organizationandserve asstandardsinevaluating
performance.Soundlyconceivedgoalsshouldbe S.M.A.R.T –specific,measurable,attainable,
realisticandtime-specific.
2. AssessingOrganizational Resources
Planningstrategiesare influencedbyanumberof factors bothwithinandoutside the organization.
Organizational resourcesinclude capabilitiesinproduction,marketing,finance,technology,and
personnel.Byevaluatingtheseresources,organizationscanpinpointtheirstrengthsand
weaknesses.Strengthshelporganizationssetobjectives,developplansformeetingobjectives,and
take advantage of marketingopportunities.Resource weaknesses,onthe otherhand,mayinhibitan
organizationfromtakingadvantage of marketingopportunities.
3. EvaluatingRisksandOpportunities
Environmental factors –competitive,political,legal,economic,technological andsocial –also
influencemarketingopportunities.The emergence of new technologiesorinnovationsmayopen
newopportunitiesforunder-marketedproducts.The marketingenvironmentmayalsopose threats
to marketingopportunities.Forexample,anew geneticallyengineereddrugmaybe developedwith
the potential tobecome a$1 billion-a-yearproduct.Buta governmentagencymaydelayrequeststo
marketthe drug due to regulations.
4. Implementingand MonitoringMarketingPlans
The overall strategicmarketingplanservesasthe basisfora seriesof operatingplansnecessaryto
move the organizationtowardaccomplishmentof itsobjectives.Ateverystepof the marketing
planningprocess,marketingmanagersuse feedbacktomonitorandadaptstrategieswhenactual
performance failstomatchexpectations.
Q.4.Describe the international market entry strategies inbrief?
Marketingcan simplybe definedasanorganizational functionandasetof processesfor creating,
communicatinganddeliveringthe value tothe customersandmanagingthe customerrelationships
insuch a way that isbeneficialforboththe customersaswell asthe stakeholders.Atinternational
level,marketingcansimplybe definedasthe processof findingoutthe needsof customersin
foreigncountriesandthenprovidingthemthe requiredentitiesatrightplace andat rightprice.
The basic conceptof marketingisthe same evenat internationallevel,butsome modificationsare
alwaysrequired.Onlyafewmultinational organizationsare luckyenoughtouse the same marketing
strategyinthe whole world,forexample—apenmanufacturingorganizationthatusesamarketing
slogan“finestwritinginthe world”willnotbe requiredtochange its marketingsloganinanypart of
world.Buta majorityof multinational organizationsneedtomodifyorspecificallyformulate their
marketingstrategyatthe international level.

5. Formulationof strategy
For formulatingitsinternationalmarketingstrategyeveryorganizationfollowsafive stepprocedure.
Thisincludesmarketassessment,productstrategy,price strategy,place strategyandpromotion
strategy.The lastfour segmentsof strategyformulationare the popular4 P’sof marketingbutthe
firstsegment—marketassessment—isanew factorto be consideredwhile formulatingan
international marketingstrategy.Nowwe willbrieflydiscussabouteachsegment.
Market assessment
The market assessmentincludesafive stepscreeningprocedure-
Firstscreening-The firstscreeningincludesthe basicidentificationof the customers’needsinthe
potential marketsof the world.Here,anorganizationpreparesalistof variouscountrieswhere it
can sell itsgoodsand services.
Secondscreening-The secondscreeningincludesthe shorteningof the listpreparedinfirstscreening
on the basisof financial andeconomicanalysisof variouspotential markets.Underfinancialanalysis,
organizationsconsiderthe fiscal policy,monetarypolicy,prevailinginterestrates, inflationratesetc.,
and undereconomicanalysis,organizationsscanthe marketsforthe size,intensityandgrowth
potential.Inthisway,organizationsexclude all unfavorable countriesfromtheirlist.
Thirdscreening- Underthe thirdscreening,the organizationconsidersthe legalandpoliticalforces
of variouspotential markets.Thisisaveryimportantstepbecause,before enteringacountry,an
organizationmustensure thatthe hostcountry’slawswill protecttheirpatents,copyrightsand
otherintellectual rights.ChoosingapoliticallyunstablenationlikePakistan,Iranetcwill alwaysbe
detrimental forthe organization’ssuccess.
FourthScreening- Underthe fourthscreening,organizationsconsiderthe socio-culturalforcesof
potential markets.Insome countrieslike India,culture andmoral valuesdon’tallow menand
womentouse intoxicants,sothose organizationsthatproduce intoxicantsshouldbe defensive for
such markets.Moreover,religiousfactorsare alsoveryimportanttoconsider,forexample,inIndia,
the Hindureligiondoesn’tallow itsfollowerstoeatbeef,sowhenMcDonald’senteredIndiathey
removedbeef fromtheirmenulist,whichotherwise isthe highestsellingproductinthe USA forMc
Donald’s.
FifthScreening- If afterfourscreenings,the organizationfindsachoice betweentwoormore
nations,andthenat the fifthstage theyshouldconsiderthe competitive environmentsinall the
potential markets.Now,someorganizationsprefertochoose those marketswhere the competitors
are lessinnumber.Onthe otherhand,some organizationsprefertochoose those marketswhere
the level of competitionisveryhigh;suchorganizationsbelieve thatthe cuttingedge competition
will alsoboosttheirperformance.Thischoice entirelydependsuponthe specificphilosophy
followedbythe organizations.
Final selection- Aftermakingall the screenings,organizationswill optforthe final selection.Thisstep
includesfieldtrips–organizationssendtheirexecutivestothe actual locationsforpractical

6. evaluation.Suchfieldtripsare verycommonandcan do a great deal to supplementthe currently
available information.Sometimes,these tripstake the formof a trade mission.Basedonthe
outcome of the screeningandthe supplemental data,anMNE will make a choice regardingthe
goodsand servicestobe offeredoverseas.
Productstrategy
Productstrategieswill vary,dependingonthe specificgoodandthe customers.Some productscan
be soldin all countrieswithoutanymodificationsbutsome productsandtheirmarketingstrategy
are requiredtobe changedaccordingto specificrequirementsof the market.
No modificationrequired-There are some productsthatdon’trequire anymodificationwiththe
change in the country,forexample—pens.A pen-manufacturingcompanywill notbe requiredto
modifytheirproductswhenlaunchingintoanew country.Infact, a companythat is usinga slogan
like “finestwritinginthe world”will notbe requiredtochange eventheirmarketingstrategy.
Modificationrequired- Onthe otherhand,some organizationsare requiredtomodifytheirproducts.
Thismodificationdependsuponmanyfactorslike economy,culture,local lawsetc;forexample,in
the USA, chewinggumpackagesoftencontain10 to 20 sticks,because the USA is a highlyintensive
marketand people inthatcountryhave a highpurchasingpower.Butinmany othercountries,weak
purchasingpowerof the customerslimitsthe packagingof the gumto only5 sticks.Similarly,other
modificationsare requiredwiththe change inthe country.
Promotionstrategy
Promotionisthe processof stimulatingdemandforacompany’sgoodsandservices.Multinational
enterprisespromotetheirgoodsandservicesindifferentcountriesthroughadvertisementand
personal selling.Dependinguponthe productandthe customers,organizationsadoptone of
followingstrategiesof promotion-
Same product same promotionmessage
Same product differentpromotionmessage
Differentproductsame promotionmessage
Differentproductdifferentpromotionmessage
Pricingstrategy
Multinational enterprisesprice theirproductsdependinguponthe specificmarket.Pricingof a
productdependsuponmanylimitingfactorslike governmentregulations,price escalatingfactors,
legal forcesetc.,forexample,insome countriesgovernmentsfix the maximumandminimumselling
price of a product.
Q.5.Discuss the various price adjustment options adoptedby the companies?
Cost-pluspricing

7. Cost-pluspricingisthe simplestpricingmethod.The firmcalculatesthe costof producingthe
productand adds ona percentage (profit) tothatprice to give the sellingprice.Thismethod
althoughsimple hastwoflaws;ittakesnoaccount of demandandthere is no way of determiningif
potential customerswill purchase the productatthe calculatedprice.
Thisappearsin twoforms,full costpricingwhichtakesintoconsiderationbothvariable andfixed
costs andadds a percentage asmarkup.The otherisdirectcost pricingwhichisvariable costsplusa
percentage asmarkup.The latteris onlyusedinperiodsof highcompetitionasthismethodusually
leadstoa lossinthe longrun.
Limitprice
A limitprice isthe price setby a monopolisttodiscourage economicentryintoamarket,andis
illegal inmanycountries.The limitprice isthe price thatthe entrantwouldface uponenteringas
longas the incumbentfirmdidnotdecrease output.The limitprice isoftenlowerthanthe average
cost of productionor justlowenoughtomake enteringnotprofitable.The quantityproducedbythe
incumbentfirmtoact as a deterrenttoentryisusuallylargerthanwouldbe optimal fora
monopolist,butmightstillproduce highereconomicprofitsthanwouldbe earnedunderperfect
competition.
The problemwithlimitpricingasastrategyis that once the entranthas enteredthe market,the
quantityusedasa threatto deterentryisno longerthe incumbentfirm'sbestresponse.Thismeans
that for limitpricingtobe an effective deterrenttoentry,the threatmustin some waybe made
credible.A waytoachieve thisisforthe incumbentfirmtoconstrainitself toproduce acertain
quantitywhetherentryoccursornot. Anexample of thiswouldbe if the firmsignedaunion
contract to employacertain(high) levelof laborfora longperiodof time.Inthisstrategyprice of
the product becomesthe limitaccordingtobudget.
Market-orientedpricing
Settinga price baseduponanalysisandresearchcompiledfromthe targetmarket.Thismeansthat
marketerswill setpricesdependingonthe resultsfromthe research.Forinstance if the competitors
are pricingtheirproductsat a lowerprice,thenit'supto themto eitherprice theirgoodsatan
above price or below,dependingonwhat the companywantsto achieve .
Penetrationpricing
Penetrationpricingincludessettingthe price low withthe goalsof attractingcustomersandgaining
marketshare.The price will be raisedlateronce thismarketshare isgained.[3]
Price discrimination
Price discriminationisthe practice of settingadifferentprice forthe same productindifferent
segmentstothe market.For example,thiscanbe for differentclasses,suchasages,or for different
openingtimes.
Premiumpricing

8. Premiumpricingisthe practice of keepingthe price of aproduct or service artificiallyhighinorderto
encourage favourable perceptionsamongbuyers,basedsolelyonthe price.The practice isintended
to exploitthe (notnecessarilyjustifiable) tendencyforbuyerstoassume thatexpensive itemsenjoy
an exceptionalreputation,are more reliable ordesirable,orrepresentexceptionalqualityand
distinction.
Predatorypricing
Predatorypricing,alsoknownasaggressive pricing(alsoknownas"undercutting"),intendedtodrive
out competitorsfromamarket.It isillegal insome countries.
Dynamicpricing
A flexiblepricingmechanismmade possible byadvancesininformationtechnology,andemployed
mostlybyInternetbasedcompanies.Byrespondingtomarketfluctuationsorlarge amountsof data
gatheredfromcustomers - rangingfromwhere theylive towhattheybuyto how much theyhave
spentonpast purchases - dynamicpricingallowsonline companiestoadjustthe pricesof identical
goodsto correspondtoa customer’swillingnesstopay.The airline industryisoftencitedasa
dynamicpricingsuccessstory.Infact, itemploysthe techniquesoartfullythatmostof the
passengersonanygivenairplane have paiddifferentticketpricesforthe same flight.
Target pricing
Pricingmethodwherebythe sellingprice of aproductis calculatedtoproduce a particularrate of
returnon investmentfora specificvolume of production.The targetpricingmethodisusedmost
oftenbypublicutilities,like electricandgascompanies,and companieswhose capital investmentis
high,like automobile manufacturers.
Target pricingisnot useful forcompanieswhose capital investmentislow because,accordingtothis
formula,the sellingprice willbe understated.Alsothe targetpricingmethod isnotkeyedtothe
demandforthe product,and if the entire volumeisnotsold,acompany mightsustainanoverall
budgetarylossonthe product.
Marginal-costpricing
In business,the practice of settingthe price of aproductto equal the extracost of producingan
extraunitof output.Bythispolicy,a producercharges,foreach productunitsold,onlythe addition
to total cost resultingfrommaterialsanddirectlabor.Businessesoftensetpricesclosetomarginal
cost duringperiodsof poorsales. If,forexample,anitemhasamarginal cost of $1.00 and a normal
sellingprice is$2.00, the firmsellingthe itemmightwishtolowerthe price to$1.10 if demandhas
waned.The businesswouldchoose thisapproachbecause the incrementalprofitof 10 centsfrom
the transactionisbetterthan nosale at all.
Value-basedpricing
Pricinga productbasedon the value the producthas for the customerandnot on itscosts of
productionorany otherfactor. Thispricingstrategyisfrequentlyusedwhere the valuetothe
customerismany timesthe costof producingthe itemorservice.Forinstance,the costof producing
a software CD isaboutthe same independentof the software onit,butthe pricesvary withthe

9. perceivedvaluethe customersare expectedtohave.The perceivedvaluewilldependonthe
alternativesopentothe customer.Inbusinessthese alternativesare usingcompetitorssoftware,
usinga manual workaround,or not doingan activity.Inorderto employvalue-basedpricingyou
have to knowyourcustomer'sbusiness,hisbusinesscosts,andhisperceivedalternatives.
Q.6.Define personalsellingandalsoexplainthe process?
Personal sellingisthe processof communicatingwithapotential buyer(orbuyers) face-to-face with
the purpose of selling aproductor service.The mainthingthatsetspersonal sellingapartfromother
methodsof sellingisthatthe salespersonconductsbusinesswiththe customerinperson.Though
personal sellingismore likelytobe effectivewithcertaintypesof productsorservices,ithas
importantapplicationsfornearlyall kindsof small businesses.Infact,mostof history'ssuccessful
entrepreneurshave beenskilledsalespeople,able torepresentandpromote theircompaniesand
productsin the marketplace.
The Personal SellingProcess
The personal sellingprocessisaconsecutive seriesof activitiesconductedbythe salesperson,the
leadto a prospecttakingthe desiredactionof buyingaproductor service andfinishwithafollow-up
contact to ensure purchase satisfaction.
StepOne
Prospecting- the firststepinthe personal sellingprocess
The processof lookingforandcheckingleadsiscalledprospectingordeterminingwhichfirmsor
individualscouldbecomecustomers.
Qualifyingaprospect:A leadisa name on a list.It onlybecomesaprospectif itis determinedthat
the personor companycan benefitfromthe service orproductoffered.A qualifiedprospecthasa
need,canbenefitfromthe productandhas the authorityto make the decision.
StepTwo
The Pre-approach
Thisstage involvesthe collectingof asmuchrelevantinformationaspossiblepriortothe sales
presentation.The pre-approachinvestigationiscarriedoutonnew customersbutalsoon regular
customers.Systematiccollectionof information requiresadecisionaboutapplicability,usefulness
and howto organise the informationforeasyaccessandeffective use.
StepThree
The Approach
The salespersonshouldalwaysfocusonthe benefitsforthe customer.Thisisdone byusingthe
product's featuresandadvantages.Thisisknownas the FABtechnique (Features,Advantagesand
Benefits).
StepFour

10. The SalesPresentation
Afterthe prospectsinteresthasbeengrasped,the salespresentationisdelivered.Thisinvolvesa
"persuasive vocal andvisual explanationof abusinessproposition".Itshouldbe done inarelaxed
atmosphere toencourage the prospecttoshare informationinordertoestablishrequirements.
Some small talkmaybe necessarytoreduce tensionbutthe purpose alwaysremainsbusiness.
StepFive
The Trial Close
The trial close isa part of the presentationandisanimportantstepinthe sellingprocess.Knownas
a temperature question - techniquetoestablishthe attitude of the prospecttowardsthe
presentationandthe product.
StepSix
HandlingObjections
Objectionsare oftenindicationsof interestbythe prospectandshouldnotbe viewedwithmisgiving
by salespeople.The prospectisinfactrequestingadditionalinformationtohelphimtojustifya
decisiontobuy.The prospect maynot be fullyconvincedandthe issuesraisedare thusvery
important.Italsoassiststhe salespersontoestablishexactlywhatisonthe prospect'smind.
StepSeven
Closingthe Sale
Thisis the lastpart of the presentation.Manysalespeople fearthe closingof asale.Closingasale is
onlythe confirmationof anunderstanding.Fearwill disappearif the salespersontrulybelievesthat
the prospectwill enjoybenefitsafterthe purchase of the product.