Marketing is a vital role in big companies and organizations to operate day to day activities smoothly and profitably. All of the company’s daily transactions are considered under marketing process. Company’s up rise and failure also depends on the type of marketing done by the company. So, it is also a genital part of work supposed to be done appropriately.

As, I am appointed as an Asst. Marketing Manager in Chaudhary Groups Associates (henceforth CG Associates), I have to implement extra-special plans and generate new marketing ideas to upgrade company’s situation & its brand loyalty. CG Associates, which is linked with LG, is the top electronic goods manufacturing company in Nepal, ranging its products from kitchen appliances, home entertainment products to communication devices and electronic components. For the best result of its successful marketing strategy, I have to know the processes of marketing, its features, important task to be considered while marketing and many more.

First of all, I have to develop the best & worthy marketing plan which will support CG Associates for its overall marketing activities & makes fine customer relationship; which will easily flow-out its products. A product or brand plan should contain the following sections : executive summary, current marketing situation, threats & opportunities, objectives & issues, marketing strategies, action programs, budgets & controls e.t.c.(Kotler et al, 1999). As, CG Associates is an electronic goods producer, I have to introduce plans regarding today’s electronic goods market. After this, research should be done regarding market situation, buying behavior of the customers, successful competitors, new generation’s most-favored products & focal point of electric goods marketing. By the data arrived from the research, the company can do marketing audit; studying company’s situation, its objectives, problem areas & its solving measures, new opportunities for the company e.t.c. It is the best measurement tool for identifying company’s internal strength & weakness as well as its opportunities & threats.

The CG Associates can make a marketing audit by arranging, SWOT analysis, Environmental analysis, Objectives analysis e.t.c. SWOT analysis is distillation of the findings of the internal and external audit which draws attention to the critical organizational strength and weaknesses and the opportunities and threats facing the company.(Kotler et al, 1999). In SWOT analysis, company makes a data, analyzing its core competencies, company’s weaknesses, opportunities for it & the successive threats, which can be the obstacle of the company’s day-to-day operations & success. The CG Associates can be aware of its weakness areas & threats like; competitors, government rules & regulation, political treaties e.t.c. and can rise-up a new strategies & control measures to face the challenges to move ahead by adding strength & searching extra-opportunities. Production procedures, skilled employees, reputed brand name, international supported partners is its core competencies as well as lack of appropriate marketing plan, and low-amount production e.t.c is its weaknesses. There are different types of new opportunities for the company to move-ahead like diversification of products, increasing capacity of production e.t.c. but it should be aware of the threats & challenges to face-out. So, analyzing all these points, the company can acknowledge its current market situation & spread new ideas & plans to do aggressive marketing with improved products in quality & quantity.

Along with SWOT analysis, the environmental scanning can reflect the situation of business environment around it, which affects the daily operations of the company. Environmental scanning helps to collect much more information about the surrounding business environment affecting directly towards the daily operations of the company. The environment consists of all the factors and forces that affect the company’s ability to transact effectively with its target market. (Armstrong et al, 1999). To reach a focused point or a target place of success, the company should analyze its surrounding environment its factors, its changes, policies e.t.c. The main environmental factors are; Political, Economical, Socio-cultural, Technological, Environmental and legal. Analyzing company’s business environment helps to create new strategies and plans and provides knowledge regarding companies have to do or do not.

By these measurement tools & strategies, CG Groups associates marketing process can be completed, which will best-fit to its type, increase its production, makes fine customer relationships e.t.c.

Task 2

Evaluate the benefits and costs of using a marketing orientation for Chaudhary Groups Associates. (1.2) D1

The marketing orientation of a company means the approach which deals directly with its customer’s needs, wants and demands rather than company’s intention about customer’s needs. Most of the today’s business markets are giving priority to this type of approach. Customers are increasing day by day and their needs also growing in simultaneous way. Also, they are more knowledgeable with different varieties and better quality products. So, To compete with other local and international competitors, company must be familiar with what customers want and supposed to get from the company, otherwise the sales of the company goes downward.

CG Associates, a leading electronics goods manufacturer of Nepal, is well-known for its quality and diversified products. The company also practices different marketing approach to get high-flow of customers and make fine company-customer relationship. From the marketing orientation approach, CG Associates can get many more benefits. They are as follows:

More focused production :- By making customers needs, wants and demands a prime focus, CG Associates will more likely manufacture newer products which will best fit to the demanded customers’ needs. From getting needed products, customer will be satisfied and repeated purchase and consumption takes place. From this, company will make more profit and also gains well reputations.

Concentrated strategy: - By adopting this type of marketing concept, company makes all its process and procedures appropriate for meeting customer’s needs, which is its vision. Company should provide extra-special services behind products; products features, its uses, its benefits for customers e.t.c. Also, The Company should take feedback and support from every customer and make a market research. By the data collection from the research, company can get information about company’s current situation, market situation, customer’s needs, products quality e.t.c. which helps to re-energize products and services by company and make fine customer relationship.

Marketing advantages: - When company is highly succeeded to fulfill customers needs, they will also buildup special powers to make a sense of effective marketing ability. Company should clarify about the introduced products, its features, its uses, its price, its benefits e.t.c. from which, customers can get right decision to use or don’t use the product. By this task, company will be on high sales volume with knowledge and loyal customers which will surely make durable marketing of the company’s products.

Long-term profitability: - By applying appropriate techniques and decisions form market orientation, company can earn long-term profitability. Company can turn one-time customers into repeat-on customers by providing appropriate goods and services. By this approach, company can earn high profit in equal rates in the market substituting other competitors.

Along with having different benefits from marketing orientation approach, there are some disadvantages or costs too. The approach is main problem is that this approach can’t be applied in small industries and institutions because they don’t have massive number of production as well as few numbers of customers and consumers. This approach is little-bit more costly for those industries, which sales volume is low. The company if does not have essential funding for market research, product differentiation, targeting e.t.c. can’t afford this approach.

Task 3

Discuss macro and micro environment factors which influences marketing decisions for an organization like Chaudhary Groups Associates. (2.1)M2

For identifying opportunities and monitoring successive threats, the company or organization must analyze it marketing environment in which the firms operates. It consists of all the active factors and forces outside normal marketing activities, which affects the marketing management abilities to maintain and develop satisfactory relationship with its target customers. Although, these factors may change depending on the type of the company and its operations, it can be mainly divided into two broad categories; micro and macro-environment. Micro-environment studies about the company, suppliers, marketing intermediaries, customer markets, competitors and public, who are actively attracted towards company’s daily transactions. The macro-environment components are: demographic, economic, natural, technological, political and cultural factors. Along with studying micro and macro-environment, the company should have more strength in comparison to its weaknesses and should be able to take opportunities dealing with its threats. In the whole, marketing environment is the combination of whole factors and forces that affects the daily transactions of business firms belonging ability to develop and maintain successful relationship with its target customers, able to adapt marketing mix. It offers both opportunities and threats to the company. Company makes research of marketing environment to monitor the changing environment of business.

It directly affects the daily transactions in different companies and manufacturers. CG Associates is equally affected by the changing business and marketing environment which it needs to analyze and research. From the manufacturing of electronic goods to the supply and sales of CG Associates, the marketing environment mainly affects. Environment affecting CG Associates for forecasting its daily activities are:-

Micro-environment: - The microenvironment consists of five components. The first is the organization’s internal environment, its several departments and management levels, which affects marketing management's decision making. The second component includes the marketing channel firms, which 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 public that have an actual or potential interest in or impact on the organization’s 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. The companies itself, Suppliers, marketing intermediaries, customer markets, Competitors, Publics are the factors of micro-environment.

The company: - The first and important role played in microenvironment is by the company itself. Company’s daily transactions affects its surrounding environment and the environment again, affects the daily transactions of company.

- Top management is responsible for setting the company’s mission, objectives, broad strategies, and policies.

-Marketing managers must make decisions within the parameters established by top management

-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 about 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 company’s overall customer‘s value delivery system. They plays active role in the production, distribution, after-sales recognition e.t.c.

- One consideration is to watch supply availability (such as supply shortages)

- 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 or people that helps the company to promote, sell, and distribute its goods to final buyers. They are distribution channel firms that helps the company find customers or make sales to them. These include wholesalers and retailers who buy and resell merchandise. 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.

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. Competitors may be local or international, they affects the daily transactions of business companies. For CG Associates electronic goods another competitors may arise.

Public :- Public is any group that has an actual or potential interest in or impact on an organization’s 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: Financial publics, which influences the company’s ability to obtain funds: Media publics, who carries news, features, and editorial opinion: Government publics, who takes developments into account: Citizen action publics, which questions about consumers needs, wants and demands while making company’s decision: Local publics, which includes neighborhood residents and community organizations: General publics, which a company must be concerned about the general public’s attitude toward its products and services and Internal publics i.e., workers, managers, volunteers, and the board of directors.

Macro-environment :- The company and all of the other actors operate in a larger macro environment of forces that shape opportunities and pose threats to the company is known as macro environment. There are six major forces in the company’s macro environment.

a. Demographic. b. Economic. c. Natural. d. Technological. e. Political. f. Cultural.

Demographic Environment:- Demography is the study of human populations in terms of size, density, location, age, sex, race, occupation, and other statistics. It is of major interest to marketers because it involves people and people make up markets. Demographic trends are constantly changing. Some more interesting ones are.

1). The world’s population rate is growing at an explosive rate that will soon exceed food supply and ability to adequately service the population. The greatest danger is in the poorest countries where poverty contributes to the difficulties

2). The most important trend is the changing age structure of the population. The population is aging because of a slowdown in the birth rate and life expectancy is increasing. The new prime market is the middle age group.

3). Generational marketing is possible, however, caution must be used to avoid

Generational alienation. Many in the modern family now telecommute in work at home or in a remote office and conduct their business using fax, cell phones, modem, or the Internet. In general, the population is becoming better educated. The work force is becoming more electronic goods consumer. Products such as books and education services appeal to groups following this trend. Technical skills, such as in computers is increasing day by day.

4). The final demographic trend is the increasing ethnic and racial diversity of the population. Diversity is a force that must be recognized in the next decade. However, companies must recognize that diversity goes beyond ethnic heritage.

Economic Environment :- the available purchasing power in an economy depends on the current income, savings, debts and credit availability. Marketers must be careful to trends affecting purchasing power because these can have a strong impact on business, especially for companies offering products geared to high-income and price-sensitive consumers. Income distribution, lifestyle, consumables, spending capacity, government recognition towards publics is the economic environment which plays vital role in selling and distribution of goods and services by business organizations.

Natural Environment:- The natural environment involves natural resources that are needed as inputs by marketers or that are affected by marketing activities. During the past two decades

environmental concerns have steadily grown. Some trend analysts labeled the specific areas of concern are:

1).Shortages of raw materials:

Staples such as air, water, and wood products have been seriously damaged and non-renewable such as oil, coal, and various minerals have been seriously depleted during industrial expansion.

2).Increased pollution:

Increased pollution is a worldwide problem. Industrial damage to the environment is very serious. Far-sighted companies are becoming “environmentally friendly” and are producing environmentally safe and recyclable or biodegradable goods. The public response to these companies is encouraging. However, lack of adequate funding, especially in third world countries, is a major barrier.

3).Government intervention:

Government intervention in natural resource management has caused environmental concerns to be more practical and necessary in business and industry. Leadership, not punishment, seems to be the best policy for long-term results. Instead of opposing regulation, marketers should help develop solutions to the material and energy problems facing the world.

4).Environmentally sustainable strategies:

The so-called green movement has encouraged or even demanded that firms produce strategies that are not only environmentally friendly but are also environmentally proactive. Firms are beginning to recognize the link between a healthy economy and a healthy environment.

Technological Environment :- The technological environment includes forces that create new technologies, creating new product and market opportunities. Technology is perhaps the most dramatic force shaping our destiny. New technologies create new markets and opportunities. Products are being technologically outdated at a rapid pace. There seems to be almost unlimited opportunities being developed daily. Consider the expanding fields of health care, the space shuttle, robotics, and biogenetic industries. The challenge is not only technical but also commercial to make practical, affordable versions of products, increased regulation e.t.c. Marketers should be aware of the regulations concerning product safety, individual privacy, and other areas that affect technological changes. They must also be alert to any possible negative aspects of an innovation that might harm users or arouse opposition.

Political Environment :- The political environment includes laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society. Various forms of legislation regulate business. Governments develops public policy

to guide commerce, sets of laws and regulations limiting business for the good of society as a whole. Almost every marketing activity is subject to a wide range of laws and regulations.

Socio-cultural environment :- Society shapes the beliefs, values and norms that largely define consumer preferences. The cultural environment is made-up of institutions and other forces that affects society’s basic values, perceptions, preferences, and behaviors. Certain cultural characteristics can affect marketing decision-making.

1). Persistence of cultural values. People’s core beliefs and values have a high degree of persistence. Core beliefs and values are passed on from parents to children and are reinforced by schools, churches, business, and government. Secondary beliefs and values are more open to change.

2). Shifts in secondary cultural values. Since secondary cultural values and beliefs are open to change, marketers want to spot them and be able to capitalize on the change potential.

Task 4

Propose segmentation criteria to be used for two selected products(such as home appliances, communication devices e.t.c.) in different markets. Justify how your proposed segmentation criteria will work. (2.2)D2

Market segmentation is the technique used to enable a business to better target it products at the right customers. It is about identifying the specific needs and wants of customer groups and then using those insights into providing products and services which meet customer needs. It is the process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics. Its objective is to design a marketing mix that precisely matches the expectations of customers in the targeted segment. . Segments are usually measured in terms of sales value or volume.

In the context of Nepal, it is a landlocked country with more hilly regions and mountains than plain land. And there is no sufficient roadways linking capital cities to other remote areas. So, CG Associates should segment its products according to following factors :-

Geographic Segmentation

This is perhaps the most common form of market segmentation, where in companies segment the market by attacking a restricted geographic area. For example, corporations may choose to market their brands in certain countries, but not in others. A brand could be sold only in one market, one state, or one region of the United States. Many restaurant chains focus on a limited geographic area to achieve concentration of force. Regional differences in consumer preferences exist, and this often provides a basis for geographic specialization. Taking CG, its main focus area is Kathmandu, whereas its products is also supplied in other parts of Nepal but in lower quantity. Likewise, a picante sauce might concentrate its distribution and advertising in the southwest. A chainsaw company might only market its products in areas with forests. Geographic segmentation can take many forms (urban versus rural, north versus south, seacoasts versus interior, warm areas versus cold, high-humidity areas versus dry areas, high-elevation versus low-elevation areas, and so on). These examples also reveal that geographic segmentation is sometimes a surrogate for (or a means to) other types of segmentation.

Demographic Segmentation

Gender, age, income, housing type, and education level are common demographic variables. Some brands are targeted only to women, others only to men. Music downloads tend to be targeted to the young, while hearing aids are targeted to the elderly. Education levels often define market segments. For instance, private elementary schools might define their target market as highly educated households containing women of childbearing age. Demographic segmentation almost always plays some role in a segmentation strategy.

Psychographic or Lifestyle Segmentation

Psychographic segmentation, based upon multi-variant analysis of consumer attitudes, values, behaviors, emotions, perceptions, beliefs, and interests. Psychographic segmentation is a legitimate way to segmenting a market, if we can identify the proper segmentation variables (or lifestyle statements, words, pictures, etc.).

Behavioral segmentation

Behavioral segmentation takes into account the specific behavior of consumers related to occasions, benefits, user status and rates, loyalty status, attitude towards products e.t.c. A consumer’s preferences may change depending on the kind of occasion. Products such as T.V. refrigerators, washing machines are highly sold-out in some special occasions and festival times.

Task 5

Choose and discuss a targeting strategy for a selected product (such as home appliance, communication devices e.t.c.) and propose new positioning for the products. Justify your proposal. (2.3, 2.5)M3

As CG Associates is a leading home appliances and communication devices manufacturer in Nepal, It is also the most favored products by customers amongst others. The company manufactures different electronic goods which will fulfill all customer’s needs and expectations from high pay customers to low level customers. Once the firm has successfully identified the needs, wants and demands of the customers within a market, the next step is to target these segments with products that closely match the needs of the customers within that segment. There are a number of targeting strategies, including:

Niche/concentration marketing – this is concerned with targeting one particular, well-defined group of customers (a niche) within the overall market.

Jordan’s, the cereal company, adopted this approach by targeting groups of customers interested in organic products at a time when this group of consumers represented a relatively small proportion of the overall market.

Niche markets can be targeted profitably by small firms who have relatively small overheads and, therefore, do not need to achieve the volume of sales required by larger competitors.

The main disadvantages of niche markets are that the potential for sales growth and economies of scale may be limited, and the survival of the firm may be seriously affected if sales begin to decline.

Mass/undifferentiated marketing – this is concerned with selling a single product to the whole market. This strategy is based on the assumption that, in respect to the product in question, customers’ needs are very similar if not identical.

The main benefit for the firm is that it can produce on a large scale, benefiting from low unit production costs via economies of scale. These lower costs can be passed on to the consumer in the form of lower prices because, although profit margins on each item sold may be lower, high sales volume should generate large profits overall.

The main disadvantage of mass marketing is that, increasingly in today’s markets, consumers are less interested in standardized products and often prepared to pay premium prices for products that cater for their specific needs.

Differentiated/selective marketing – this is concerned with targeting each segment with a product with its own marketing mix designed to match the needs of the consumers within the segment.

By tailoring products to meet consumer needs more closely, firms are likely to increase consumer satisfaction and generate a greater degree of consumer loyalty.

The differentiated approach also allows the firm to spread risks, so that it will be less affected by a decline in demand from one segment.

The main disadvantages of this approach include confusion amongst customers when faced with dozens of brands and lost economies of scale from shorter production runs and the additional costs of having to advertise several rather than one brand.

After making targeting strategy, company makes positioning strategies. Positioning means the act of designing the company’s offering and image to occupy a distinctive place in the minds of the target markets.(Trout et al 2000). In other words, positioning is make right place of products in consumer’s mind to make sales higher and make company in benefits. A right market positioning helps to make appropriate marketing strategies for the products with making special plans for company, staffs as well as its customers. The result of positioning is the successful creation of a customer-focused value proposition which will help the company to make customers buy higher. Making right product, targeting right customers, delivering in right time is called positioning.

CG Associates can make positioning by targeting it loyal customers. The company can introduce newer and high-quality products, which will give high satisfaction to customers and make the keep in touch with their mind. CG Associates, Television has been set-upped in customers mind, so its sales is conducted automatically.

Task 6

Demonstrate how buyer behavior affects marketing activities in different buying situations. (2.4)D3

Buying Behavior is the decision processes and acts of people involved in buying and using products.

A buyer or consumer purchases goods or products from the company and he/she starts to consume it and will be familiar with it. There are six stages of consumption of products for a normal buyer. They are ; need recognition and problem awareness, information search, evaluation of alternatives, purchases, post-purchase evaluation. First of all, buyers needs some help to find-out what he/she wants and what are the common problems to get that product, then, he/she searches appropriate products which will satisfy needs, wants and demands, After that comes the evaluation phase in which buyer compares one product to another substitutes and then he/she purchases the product and consumes it. After consuming the product, buyer evaluates the service of the company, delivery process, product satisfaction, product’s other utilities e.t.c. and if he/she is really satisfy from that product he/she will regular buy that product.

So by buyer behavior, company makes loyal customers who has effective knowledge and ideas about that product and who makes higher purchase in the company.

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EduBusiness

Friday, April 19, 2013

Assignment on Chaudhary Group Associates.

Task 1