ms-06 mba assignment july dec 2010 Question 1

Q1 a) Explain the term Marketing and distinguish it from “Selling” with Suitable illustrations.

            Marketing is the process by which companies create customer interest in products or services. It generates the strategy that underlies sales techniques, business communication, and business development. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves. Marketing is used to identify the customer, to keep the customer, and to satisfy the customer. With the customer as the focus of its activities, it can be concluded that marketing management is one of the major components of business management. Marketing evolved to meet the stasis in developing new markets caused by mature markets and overcapacities in the last 2-3 centuries.[citation needed] The adoption of marketing strategies requires businesses to shift their focus from production to the perceived needs and wants of their customers as the means of staying profitable. The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions.[2] It proposes that in order to satisfy its organizational objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors.

Distinguish Between Marketing and Selling:

·         Marketing means all customer's wants satisfying efforts concerning with planning, pricing, promoting product, pricing, promoting product and services.

·         Marketing accords importance to the satisfaction of consumers wants effectively.

·         Marketing in its initial stage decides, what the consumers want. Secondly, it decides how the commodity can be profitably produced and finally delivered to consumers for satisfying their needs.

·         Marketing has to take into consideration both the internal and external factors.

·         Efforts are buyers oriented and emphasize the satisfaction of the needs of buyers effectively.

·         If refers to integrated approach towards achieving long term objectives.

·         Profit is sought by ensuring customers satisfaction.

·         Marketing is a comprehensive term, which, includes selling, advertising and also the       distribution of goods.

Selling

·         Selling is the transfer of the ownership and possession of the goods to the purchases.

·         Selling emphasizes the products.

·         Commodities are produced and after wards efforts are made for their profitable selling.

·         Selling is concerned with the internal considerations regarding production and distribution of goods. It is narrower in scope.

·         Efforts are seller oriented and emphasize sellers needs.

·         It refers to piece mental approach to achieve short term goals.

·         Profit is sought by ensuring higher sales volume.

·         Selling is the part of marketing and thus not a comprehensive term.

b) Enumerate and briefly explain the elements of marketing mix for services by taking an example of banking services.

Elements of Marketing Mix Services:

            Putting the right product in the right place, at the right price, at the right time. It's simple! You just need to create a product that a particularly group of people want, put it on sale some place that those same people visit regularly, and price it at a level which matches the value they feel they get out of it; and do all that at a time they want to buy. Then you've got it made. There's a lot of truth in this idea. However, a lot of hard work needs to go into finding out what customers want, and identifying where they do their shopping. Then you need to figure out how to produce the item at a price that represents value to them, and get it all to come together at the critical time. But if you get just one element wrong, it can spell disaster. You could be left promoting a car with amazing fuel-economy in a country where fuel is very cheap; or publishing a textbook after the start of the new school year, or selling an item at a price that's too high – or too low – to attract the people you're targeting. The marketing mix is a good place to start when you are thinking through your plans for a product or service, and it helps you avoid these kinds of mistake. The marketing mix and the 4 Ps of marketing are often used as synonyms for each other. In fact, they are not necessarily the same thing.

            "Marketing mix" is a general phrase used to describe the different kinds of choices organizations have to make in the whole process of bringing a product or service to market. The 4 Ps is one way - probably the best-known way - of defining the marketing mix, and was first expressed in 1960 by E J McCarthy.

The 4Ps are:

·         Product

·         Place

·         Price

·         Promotion

            A good way to understand the 4 Ps is by the questions that you need to ask to define you marketing mix. Here are some questions that will help you understand and define each of the four elements:

Product

·         What does the customer want from the product/service? What needs does it satisfy?

·         What features does it have to meet these needs?

·         Are there any features you've missed out?

·         Are you including costly features that the customer won't actually use?

·         How and where will the customer use it?

·         What does it look like? How will customers experience it?

·         What size(s), color(s), and so on, should it be?

·         What is it to be called?

·         How is it branded?

·         How is it differentiated versus your competitors?

·         What is the most it can cost to provide, and still be sold sufficiently profitably?

Place

·         Where do buyers look for your product or service?

·         If they look in a store, what kind? A specialist boutique or in a supermarket, or both? or online? or direct, via a catalogue?

·         How can you access the right distribution channels?

·         Do you need to use a sales force? Or attend trade fairs? Or make online submissions? or send samples to catalogue companies?

·         What do you competitors do, and how can you learn from that and/or differentiate?

Price

·         What is the value of the product or service to the buyer?

·         Are there established price points for products or services in this area?

·         Is the customer price sensitive? Will a small decrease in price gain you extra market share? or will a small increase be indiscernible, and so gain you extra profit margin?

·         What discounts should be offered to trade customers, or to other specific segments of your market?

·         How will your price compare with your competitors?

Promotion

·         Where and when can you get across your marketing messages to your target market?

·         Will you reach your audience by advertising in the press, or on TV, or radio, or on billboards? By using direct marketing mail shot? Through PR? On the Internet?

·         When is the best time to promote? Is there seasonality in the market? Are there any wider environmental issues that suggest or dictate the timing of your market launch, or the timing of subsequent promotions?

·         How do your competitors do their promotions? And how does that influence your choice of promotional activity?

            The 4Ps model is just one of many marketing mix lists that have been developed over the years. And, whilst the questions we have listed above are key, they are just a subset of the detailed probing that may be required to optimize your marketing mix.

The elements of marketing mix for services by taking an example of banking services:

            This thesis has been conducted after approval of Swedbank, for comparing their marketing mix services with those of Rabobank. The study aimed finding differences between Swedbank’s and Rabobank’s marketing mix services. Within the subject services, the study has aimed towards finding the differences –and similarities between the services marketing mix of Swedbank and Rabobank. The study also focused on the activities held in order to support the services marketing mix.

Method:

            The empirical findings were gathered by use of both written –and telephone interviews. Keywords were written down during the telephone interview and later constructed into full sentences. Data taken from the written interviews was viewed and re-written into complete sentences. The data has been analyzed with use of the literature review.

Result & Conclusions:

            Both Swedbank and Rabobank seem to have a highly similar services marketing mix. Small differences were found in marketing research, products, marketing communication, Human Resources Management and servicescape. In all these aspects it showed that Swedbank uses a more personal approach than Rabobank.

Suggestions for future research:

            The thesis’ focus has been on the services marketing mix of Swedbank and Rabobank in general. This allowed the research to go more in-depth than other subjects in the services marketing mix. To get a more clear view on the supporting methods both Swedbank and Rabobank use to support its services marketing mix, future research could be focused on the historical development of both banks which has developed the bank’s ways of doing business, the price development methods in detail, the segmentation process, the marketing communication campaigns of both Swedbank’s –and Rabobank’s internet banking, service development process and corporate identity strategy. It would also be interesting to compare these banks with their competitors in order to discover why Swedbank and Rabobank stand out more than their competitors.

Contribution of the thesis:

            This thesis compared two of the largest banks in both home countries and shows the implications of successful services marketing mixes. This thesis is useful for financial banks and other related financial service institutions.